Orrstown sells 172 commercial loans
SHIPPENSBURG – Orrstown Financial Services Inc., parent company of Orrstown Bank, reported Thursday that it has completed the sale of 172 commercial loans with a balance of $45.6 million to an independent investor group.
The company received proceeds of $32.1 million from the loan sale and expects the discount to book value to be absorbed through existing loan loss reserves.
As a result of the sale, Orrstown Financial Services’ troubled assets were reduced by approximately 42 percent versus Sept. 30, 2012 and approximately 61 percent versus Dec. 31, 2011.
“The company demonstrated profitability in the first two months of the 4th quarter and we are optimistic about our 4th quarter results,” President and CEO Thomas R. Quinn, Jr. said. “The board and management have worked tirelessly this year to address the critical issues facing the Company and we look forward to meeting the needs of our customers, shareholders, and the communities we serve in 2013 and beyond.”