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Orrstown Financial Services is selling $185.6 million in securities and buying new ones, expecting a $13.8 million loss.

ResultsRead the original at SEC EDGAR
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Orrstown expects higher-yielding securities to raise future income and profit. The $13.8 million loss and temporary capital decline weigh against this, but capital will remain well above required levels and recovery is expected within 2 quarters.

ORRF · Orrstown Financial Services Inc.

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The swap replaces investments earning less with ones expected to earn more. That should lift income and profit in future periods. The main cost is a one-time loss and a temporary dip in bank capital. Orrstown says capital will stay well above required levels and expects the capital decline to be recovered within 2 quarters.

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