Orrstown Financial Services (ORRF) sold $28.6 million of nonperforming commercial loans to an unnamed outside investor.

The $1.4 billion-asset company, which has been taking steps to reduce problem assets, said in a regulatory filing Wednesday that it would record an after-tax charge of $5.8 million for the second quarter to reflect the loan sale. Orrstown said the sale will cut its ratio of nonperforming assets to total assets by more than 300 basis points; the ratio stood at 5.84% on March 31.

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