Company Overview - Orrstown Financial Services (ORRF) is headquartered in Harrisburg and operates in the Finance sector [3] - The stock has experienced a price change of -0.74% since the beginning of the year [3] Dividend Information - Orrstown Financial Services currently pays a dividend of $0.23 per share, resulting in a dividend yield of 2.53% [3] - The company's annualized dividend of $0.92 has increased by 7% from the previous year [4] - Over the last five years, Orrstown has raised its dividend four times, averaging an annual increase of 5.61% [4] - The current payout ratio is 25%, indicating that 25% of its trailing 12-month earnings per share (EPS) is distributed as dividends [4] Earnings Growth - The Zacks Consensus Estimate for 2025 projects earnings of $4.37 per share, reflecting a year-over-year growth rate of 16.22% [5] Investment Considerations - Orrstown is considered a strong dividend play, appealing to income investors due to its consistent dividend payments [7] - The stock holds a Zacks Rank of 3 (Hold), suggesting a stable investment opportunity [7]

Group 1: Earnings Performance - Orrstown Financial Services reported quarterly earnings of $0.87 per share, missing the Zacks Consensus Estimate of $1.03 per share, representing an earnings surprise of -15.53% [1] - The company posted revenues of $61.82 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 3.33%, compared to year-ago revenues of $32.51 million [2] - Over the last four quarters, Orrstown has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Orrstown shares have not added value since the beginning of the year, while the S&P 500 has gained 3.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $1.03 on revenues of $63.55 million, and for the current fiscal year, it is $4.37 on revenues of $259.85 million [7] Group 3: Industry Context - The Zacks Industry Rank for Banks - Northeast is currently in the top 7% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5] - The current status of estimate revisions for Orrstown translates into a Zacks Rank 3 (Hold), suggesting the shares are expected to perform in line with the market in the near future [6]

Financial Performance - Net income for Q4 2024 was $13.7 million, or $0.71 per diluted share, compared to a net loss of $7.9 million, or $0.41 per diluted share in Q3 2024[2]. - Excluding non-recurring charges, adjusted net income for Q4 2024 was $16.7 million, with diluted earnings per share of $0.87, compared to $21.4 million and $1.11 in Q3 2024[3]. - Net income available to common shareholders for the twelve months ended December 31, 2024, was $22,050 thousand, down from $35,663 thousand in 2023, a decrease of 38.5%[31]. - Net income for Q4 2024 was $13,684,000, compared to $7,643,000 in Q4 2023, indicating an increase of 79.9%[35]. - The company reported a net income of $13,684,000 for the three months ended December 31, 2024, compared to a net loss of $7,903,000 in the previous quarter[56]. Dividends and Shareholder Equity - The Board declared a cash dividend of $0.26 per common share, representing a 13% increase from the previous quarter[2]. - Shareholders' equity increased to $516.7 million at December 31, 2024, up from $516.2 million at September 30, 2024, driven by net income of $13.7 million[27]. - The company paid dividends of $0.23 per share in Q4 2024, up from $0.20 in Q4 2023[37]. Income and Expenses - Noninterest income decreased by $1.2 million to $11.2 million in Q4 2024, driven by fee waivers and the absence of tax credits recognized in Q3 2024[17]. - Noninterest expenses decreased by $17.4 million to $42.9 million in Q4 2024, with merger-related expenses totaling $3.9 million[21]. - Total noninterest expenses for the quarter ended December 31, 2024, were $42,930,000, compared to $22,392,000 in the same quarter of 2023, indicating an increase of approximately 92.5%[48]. Loans and Credit Quality - Commercial loans declined by $59.5 million, or 2%, primarily due to strategic actions to reduce risk in the portfolio[2]. - The provision for credit losses was $1.8 million in Q4 2024, including a charge-off of $2.4 million for one commercial and industrial relationship[2]. - The allowance for credit losses to total loans ratio was 1.24% at December 31, 2024, compared to 1.11% at December 31, 2023, indicating a slight increase in credit risk management[32]. - The allowance for credit losses to total loans ratio was 1.24% in Q4 2024, compared to 1.25% in Q3 2024, indicating a slight improvement in credit quality[50]. - Net charge-offs were reported at $3,002 thousand in Q4 2024, significantly higher than $269 thousand in Q3 2024, indicating increased credit losses[50]. Asset Growth and Financial Ratios - Total assets reached $5,431,023 thousand at December 31, 2024, compared to $3,064,240 thousand at December 31, 2023, reflecting a 77.2% growth[33]. - The Tier 1 leverage ratio improved to 8.3% at December 31, 2024, up from 8.0% at September 30, 2024, indicating stronger capital adequacy[27]. - The efficiency ratio for the three months ended December 31, 2024, was 69.4%, slightly higher than 68.9% in the same period of 2023[31]. - The return on average assets for the quarter ended December 31, 2024, was 1.00%, compared to 1.00% in the same quarter of 2023[47]. Interest Income and Margin - Net interest income for the three months ended December 31, 2024, was $50,573 thousand, compared to $26,018 thousand for the same period in 2023, representing a 94.5% increase[31]. - Total interest income for Q4 2024 reached $80,015,000, a 99.9% increase from $40,028,000 in Q4 2023[35]. - The net interest margin decreased to 4.05% in Q4 2024 from 4.14% in Q3 2024, with net interest income of $50.6 million[11]. - The yield on loans increased from 6.34% in the previous quarter to 6.82% in the current quarter[38]. Future Outlook and Risks - The company emphasizes that forward-looking statements are based on current expectations and are subject to risks and uncertainties that could lead to materially different actual results[61]. - Factors affecting future performance include general economic conditions, changes in interest rates, and competition impacting the community banking model[61]. - The anticipated benefits of the merger with Codorus may not be realized as expected, and the merger could be more expensive than anticipated[61]. - The company warns that actual results may differ from expectations due to various risks, including operational risks and changes in consumer behavior[62].

Net income of $13.7 million, or $0.71 per diluted share, for the three months ended December 31, 2024 compared to net loss of $7.9 million, or $0.41 per diluted share, for the three months ended September 30, 2024; the fourth quarter of 2024 included $3.9 million in expenses related to the merger and $0.5 million for a legal settlement compared to $17.0 million in expenses related to the merger, $15.5 million of provision for credit losses on non-purchase credit deteriorated loans and $4.8 million for an ex ...

Orrstown Financial Services (ORRF) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if t ...

Chris Orr, Chief Information Officer Chris Orr will lead Orrstown Bank’s technology strategy, leveraging nearly 20 years of experience in consulting, software delivery, and banking. Ben Colvard, Chief Operations Officer Ben Colvard will oversee Orrstown Bank’s operational strategy and ensure alignment of people, processes, and technology to deliver exceptional client experiences. HARRISBURG, Pa., Jan. 16, 2025 (GLOBE NEWSWIRE) -- Orrstown Bank, a wholly owned subsidiary of Orrstown Financial Servic ...

Following last year’s merger of equals, earnings of Orrstown Financial Services, Inc. (NASDAQ: ORRF ) will likely rebound in 2025. Organic loan additions will likely be the earnings catalyst. Further, the company is expecting some cost savings from theAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not rec ...

Table of Contents Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading symbol(s) Name of each exchange on which registered Common Stock, no par value ORRF Nasdaq Stock Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANG ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Investors might want to bet on Orrstown Financial Services (ORRF) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook. Analysts' growing optimism on the earnings prospects of this holding company for Orrstown Bank is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlatio ...