Orrstown Financial Services Inc. reported results Thursday for its second fiscal quarter of 2012.

The bank reported a net loss of $9.9 million, or $1.23 per diluted share, compared with a net loss of $10.6 million, or $1.33 per diluted share, in the second quarter of 2011.

Analysts had predicted a loss of 15 cents per share, according to Yahoo Finance.

Orrstown said it reduced its nonperforming loans by a third since the end of 2011, from $83.7 million to $56.9 million. The bank announced earlier this month it sold a package of nonperforming loans to a group of private investors.

“As a result of this loan sale and other credit quality improvement efforts, we have decreased total risk assets by $50.4 million or 44.3 percent year-to-date,” President and CEO Thomas Quinn said in a statement.

The bank is under a regulatory decree to improve its asset quality.

Orrstown Financial Services, based in Shippensburg, is the parent company of Orrstown Bank. Its shares trade on the Nasdaq under the ticker symbol ORRF.