Shippensburg, Pa.-based Orrstown Financial Services Inc. on Dec. 19 completed an offering of $32.5 million fixed-to-floating-rate subordinated notes due Dec. 30, 2028.

The notes will initially bear a 6% annual interest from Dec. 19 to, but excluding, Dec. 30, 2023, with interest payments payable semiannually in arrears. From Dec. 30, 2023, to the maturity or early redemption date, the interest rate will be the annual floating rate equal to the three-month London interbank offered rate plus 316 basis points. The interest will be payable quarterly in arrears.

The notes can be redeemed, in whole or in part, by Orrstown Financial Services on or after Dec. 30, 2023.

Orrstown Financial Services intends to use net offering proceeds for general corporate purposes.

Boenning & Scattergood Inc. served as sole placement agent of the offering and Goodwin Procter LLP served as legal counsel to Orrstown Financial Services. Stradley Ronon Stevens & Young LLP served as legal counsel to the placement agent.