With $5.4 billion in assets, Orrstown Financial Services, Inc. and its wholly owned subsidiary, Orrstown Bank, provide a wide range of consumer and business financial services in Adams, Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry, and York Counties, Pennsylvania and Anne Arundel, Baltimore, Howard, and Washington Counties, Maryland, as well as Baltimore City, Maryland. The Company's lending area also includes counties in Pennsylvania, Maryland, Delaware, Virginia and West Virginia within a 75-mil ...

Core Insights - Orrstown Bank has announced the promotion of Zachary Khuri to Chief Revenue Officer and Joshua Hocker to Market President for the Central Pennsylvania Region, effective immediately [1][2][3] Group 1: Leadership Changes - Zachary Khuri, previously the Market President for the Central Pennsylvania Region, has over 20 years of banking experience and has been instrumental in expanding the Bank's market share since joining in 2019 [2][3] - Joshua Hocker, who has been appointed as Market President, previously served as Director of Middle Market Lending and has a strong track record in commercial banking [3][4] Group 2: Company Overview - Orrstown Financial Services, Inc. has $5.4 billion in assets and offers a wide range of consumer and business financial services across multiple counties in Pennsylvania and Maryland [4] - The company's lending area extends to counties in Pennsylvania, Maryland, Delaware, Virginia, and West Virginia within a 75-mile radius of its executive offices [4]

Financial Performance - For the three months ended March 31, 2025, net income was $18.1 million, a significant increase from $8.5 million in the same period of 2024, resulting in diluted earnings per share of $0.93 compared to $0.81[200]. - Net income for Q1 2025 was $18.1 million, up from $8.5 million in Q1 2024, with diluted earnings per share increasing to $0.93 from $0.81[222]. - Adjusted net income for the three months ended March 31, 2025 was $19.3 million, compared to $9.2 million for the same period in 2024[314]. - The Company reported total comprehensive income of $20.3 million for the three months ended March 31, 2025, an increase of $12.0 million from $8.3 million in the same period of 2024[300]. Assets and Liabilities - As of March 31, 2025, the Company reported total assets of $5.4 billion, total liabilities of $4.9 billion, and total shareholders' equity of $532.9 million[199]. - The Company had cash and cash equivalents of $287.1 million at March 31, 2025, up from $248.9 million at December 31, 2024[307]. - Total loans decreased by $55.2 million from December 31, 2024, primarily due to strategic actions to reduce risk in the portfolio, including a reduction in commercial real estate loan concentrations[261]. - As of March 31, 2025, the total loans amount to $22.727 billion, with nonaccrual loans at $400 million, compared to $24.111 billion and $641 million respectively on December 31, 2024[270]. Income and Expenses - Net interest income rose to $48.8 million in Q1 2025, compared to $26.9 million in Q1 2024, reflecting a $21.9 million increase[223]. - Noninterest income increased to $11.6 million in Q1 2025 from $6.6 million in Q1 2024, primarily due to a merger-related increase in wealth management income[224]. - Noninterest expenses totaled $38.2 million in Q1 2025, up from $22.5 million in Q1 2024, with a significant portion attributed to merger-related costs[226]. - The effective tax rate for Q1 2025 was 20.7%, slightly higher than 20.6% in Q1 2024, influenced by tax-exempt income[227]. Credit Losses and Provisions - The allowance for credit losses (ACL) is determined based on a quantitative assessment of loans, incorporating historical loss performance and forecasts of future economic conditions[213]. - The provision for credit losses showed a recovery of $554 thousand in Q1 2025, compared to an expense of $298 thousand in Q1 2024[223]. - The Allowance for Credit Losses (ACL) totaled $47.8 million at March 31, 2025, an increase of $18.6 million from March 31, 2024[287]. - The ACL as a percentage of the total loan portfolio was 1.23% at March 31, 2025, compared to 1.27% at March 31, 2024[287]. Loan Portfolio and Risk Management - The Company is focused on mitigating risks associated with inflation, interest rates, and geopolitical tensions that could impact financial estimates and credit losses[205]. - The company believes it has adequately provided for potential losses on evaluated relationships as of March 31, 2025[273]. - The company conducts annual internal loan reviews for all commercial relationships with committed loan balances exceeding $2 million[271]. - The company has maintained a strong risk rating of "Pass" for the majority of its loan portfolio, indicating overall financial health[276]. Market and Economic Conditions - Preliminary real GDP contracted by 0.3% on an annualized basis in Q1 2025, contrasting with a 2.4% increase in Q4 2024 and a 1.4% increase in Q1 2024[202]. - The national unemployment rate was 4.2% in March 2025, up from 4.1% in December 2024 and 3.8% in March 2024[203]. - The 10-year Treasury bond yield decreased to 4.23% as of March 31, 2025, down from 4.58% at December 31, 2024[204]. Interest Rate Sensitivity - As of March 31, 2025, the bank is asset sensitive, indicating that net interest income will increase with rising interest rates[322]. - The simulation analysis shows a projected 4.2% increase in net interest income with a 200 basis point rise in market interest rates for March 31, 2025[325]. - The bank's net interest income sensitivity analysis reflects a 2.4% increase with a 100 basis point rise in interest rates for March 31, 2025[325]. - The bank's funding costs are not expected to decline as quickly as historically modeled, which may affect asset sensitivity[322].

Orrstown Financial Services, Inc. (NASDAQ:ORRF) Q1 2025 Earnings Conference Call April 23, 2025 9:00 AM ET Company Participants Tom Quinn - President and CEO Adam Metz - Senior Executive Vice President and COO Neel Kalani - EVP and CFO Bob Coradi - CRO David Chajkowski - Chief Credit Officer Conference Call Participants David Long - Raymond James John Schneider - Hovde Group Tim Switzer - KBW Gregory Zingone - Piper Sandler Dan Cardenas - Janney Montgomery Scott Operator Good morning. My name is Julieann, a ...

Orrstown Financial Services (ORRF) reported $60.39 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 80.2%. EPS of $1.00 for the same period compares to $0.88 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $61.25 million, representing a surprise of -1.41%. The company delivered an EPS surprise of +5.26%, with the consensus EPS estimate being $0.95.While investors scrutinize revenue and earnings changes year-over-year and how they comp ...

Orrstown Financial Services (ORRF) Q1 2025 Earnings Call April 23, 2025 09:00 AM ET Company Participants Thomas Quinn - President & CEOAdam Metz - Senior EVP & COONeelesh Kalani - EVP & CFORobert Coradi - EVP & CROTim Switzer - Vice PresidentDavid Chajkowski - Chief Credit OfficerDan Cardenas - Director - Banks & Thrifts Conference Call Participants David Long - AnalystNone - AnalystGregory Zingone - Research Analyst Operator Good morning. My name is Julianne, and I will be your conference operator today. A ...

Financial Performance - Net income for Q1 2025 was $18.1 million, or $0.93 per diluted share, compared to $13.7 million, or $0.71 per diluted share in Q4 2024, reflecting a significant increase [2]. - Excluding merger-related expenses, adjusted net income for Q1 2025 was $19.3 million, or $1.00 per diluted share, compared to $16.7 million, or $0.87 per diluted share in Q4 2024 [3]. - Net income available to common shareholders was $18.051 million for the first quarter of 2025, compared to $8.531 million for the same period in 2024, marking an increase of 111.9% [30]. - Net income for Q1 2025 was $18,051,000, compared to $13,684,000 in Q4 2024, reflecting a growth of 32.5% [39]. - Adjusted net income, excluding non-recurring charges, was $19,332,000 for the same period, reflecting an increase from $16,698,000 in the prior quarter [48]. Income and Expenses - Noninterest expenses decreased by $4.7 million to $38.2 million in Q1 2025 from $42.9 million in Q4 2024, with merger-related expenses down to $1.6 million [20]. - Total noninterest expenses decreased to $38,176,000 in Q1 2025, down from $42,930,000 in Q4 2024, a reduction of 11.5% [40]. - For the three months ended March 31, 2025, the adjusted noninterest expense was $36,527 thousand, a decrease from $38,531 thousand in the previous quarter [49]. Capital and Assets - Total risk-based capital ratio increased to 13.1% at March 31, 2025, compared to 12.4% at December 31, 2024, indicating improved capital strength [2]. - Shareholders' equity increased to $532.9 million at March 31, 2025, from $516.7 million at December 31, 2024, driven by net income and other comprehensive income [26]. - Total assets remained stable at $5.441 billion as of March 31, 2025, compared to $5.441 billion at December 31, 2024 [31]. - Total assets reached $5,425,697 thousand, reflecting a decrease from $5,464,165 thousand in the previous quarter [37]. - The company operates with $5.4 billion in total assets, providing a range of financial services across multiple counties in Pennsylvania and Maryland [51]. Interest Income and Margin - Net interest income increased to $48.761 million for the three months ended March 31, 2025, compared to $26.881 million for the same period in 2024, representing an increase of 81.5% [30]. - Net interest income for Q1 2025 was $48,761,000, a decrease of 3.6% from $50,573,000 in Q4 2024 [39]. - The taxable equivalent net interest income for the quarter was $49,203 thousand, down from $51,010 thousand in the previous quarter [37]. - The net interest margin was reported at 4.00%, a slight decrease from 4.05% in the previous quarter [37]. - Net interest margin decreased to 4.00% in Q1 2025 from 4.05% in Q4 2024, impacted by Federal Funds rate cuts [8]. Loans and Deposits - Commercial loans declined by $49.7 million, or 2%, from Q4 2024 to Q1 2025 due to strategic risk reduction actions [2]. - Deposits increased by $10.6 million to $4.6 billion at March 31, 2025, with interest-bearing demand deposits rising by $52.5 million [6]. - Total deposits increased slightly to $4,633,716,000 in Q1 2025 from $4,623,096,000 in Q4 2024 [41]. Shareholder Value - Tangible book value per common share increased to $21.99 at March 31, 2025, compared to $21.19 at December 31, 2024, reflecting enhanced shareholder value [2]. - Book value per share rose to $27.32 in Q1 2025, compared to $26.65 in Q4 2024, an increase of 2.5% [39]. - Dividends paid per share increased to $0.26 from $0.20 year-over-year, marking a 30% increase [36]. Efficiency and Performance Ratios - The efficiency ratio improved to 63.2% for the first quarter of 2025, down from 67.0% in the prior year [30]. - The efficiency ratio improved to 63.2% in Q1 2025, down from 69.4% in Q4 2024, indicating better cost management [39]. - The Company reported a return on average assets of 1.35% for the first quarter of 2025, compared to 1.11% for the same period in 2024 [30]. - Return on average assets for Q1 2025 improved to 1.35%, up from 1.00% in Q4 2024 [39]. Credit Quality - The allowance for credit losses decreased to $47.8 million at March 31, 2025, with a recovery of $0.6 million recorded for the provision for credit losses [13]. - The allowance for credit losses to total loans ratio was 1.23% as of March 31, 2025, slightly down from 1.24% in the previous quarter [42]. - Nonaccrual loans totaled $22,727,000 as of March 31, 2025, compared to $24,111,000 at December 31, 2024 [42]. - Total nonperforming assets decreased to $22,865,000 as of March 31, 2025, from $24,249,000 at December 31, 2024 [42]. Investment Portfolio - The investment portfolio had a fair value of $855,249 thousand, with 97% guaranteed by the U.S. government [50]. - The largest sector in the investment portfolio was Agency CMO, accounting for 40% of the total [50]. - The company reported a credit rating distribution of 4% AAA, 87% AA, and 5% A within its investment portfolio [50]. Forward-Looking Statements - Forward-looking statements indicate potential risks including interest rate changes and competition affecting future performance [52]. - The company cautions that actual results may differ materially from forward-looking statements due to various uncertainties [53].

分组1 - Orrstown Financial Services reported quarterly earnings of $1 per share, exceeding the Zacks Consensus Estimate of $0.95 per share, and up from $0.88 per share a year ago, representing an earnings surprise of 5.26% [1] - The company posted revenues of $60.39 million for the quarter ended March 2025, which missed the Zacks Consensus Estimate by 1.41%, but increased from $33.51 million year-over-year [2] - Over the last four quarters, Orrstown has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] 分组2 - The stock has underperformed, losing about 26.8% since the beginning of the year compared to the S&P 500's decline of 12.3% [3] - The current consensus EPS estimate for the coming quarter is $1.01 on revenues of $62.45 million, and for the current fiscal year, it is $4.09 on revenues of $252.65 million [7] - The Zacks Industry Rank for Banks - Northeast is currently in the top 25% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

(1) Non-GAAP measure. See Appendix A for additional information. HARRISBURG, Pa., April 22, 2025 (GLOBE NEWSWIRE) -- Orrstown Financial Services, Inc. (NASDAQ: ORRF), the parent company of Orrstown Bank (the "Bank"), announced earnings for the three months ended March 31, 2025. Net income totaled $18.1 million for the three months ended March 31, 2025, compared to net income of $13.7 million for the three months ended December 31, 2024 and net income of $8.5 million for the three months ended March 31, 2024 ...

Core Viewpoint - Orrstown Financial Services, Inc. will report its first quarter 2025 earnings on April 22, 2025, and will host a conference call and webcast to discuss the results on April 23, 2025 [1] Group 1: Earnings Announcement - The earnings release is scheduled for April 22, 2025, after market close [1] - A conference call and webcast will take place on April 23, 2025, at 9:00 a.m. ET to review the quarterly results [1] Group 2: Webcast and Conference Call Details - Interested parties can join the webcast at the provided link [2] - Telephone participation is available with specific dialing instructions for the USA and Canada [2] - A recorded playback of the conference call will be accessible until April 30, 2025, with details for accessing the recording [2] Group 3: Company Overview - Orrstown Financial Services, Inc. has $5.4 billion in assets and offers a variety of financial services across multiple counties in Pennsylvania and Maryland [3] - The company operates under the name Orrstown Bank and is an Equal Housing Lender with FDIC-insured deposits [3] - The common stock of Orrstown Financial Services, Inc. is traded on Nasdaq under the ticker symbol ORRF [3]