Core Viewpoint - Orrstown Financial Services (ORRF) is expected to report a year-over-year increase in earnings and revenues, but actual results compared to estimates will significantly impact its stock price [1][2]. Earnings Expectations - The consensus estimate for Orrstown's quarterly earnings is $0.95 per share, reflecting an 8% increase year-over-year [3]. - Expected revenues are projected at $61.25 million, which is an 82.8% increase from the same quarter last year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 3.21%, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Orrstown is lower than the Zacks Consensus Estimate, leading to a negative Earnings ESP of -0.87% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of actual earnings deviating from consensus estimates, with positive readings being more predictive [6][7]. - A positive Earnings ESP combined with a strong Zacks Rank (1, 2, or 3) has shown a nearly 70% success rate in predicting earnings beats [8]. Historical Performance - In the last reported quarter, Orrstown was expected to earn $1.03 per share but only achieved $0.87, resulting in a surprise of -15.53% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - Orrstown does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors before making investment decisions [16].

Regulatory Compliance - As of December 31, 2024, the Parent Company and the Bank's regulatory capital ratios were above applicable well-capitalized standards and met the Capital Conservation Buffer requirement[71]. - The Bank is required to maintain a Capital Conservation Buffer to avoid restrictions on capital distributions and discretionary bonus payments to management[70]. - The Bank received a CRA rating of "Satisfactory" in its most recent examination prepared by the FRB on January 22, 2024[82]. - The FRB regulations require depository institutions to maintain cash reserves against specified deposit liabilities, with the reserve requirement on transaction accounts currently set at 0%[88]. - The Company is subject to federal and state laws designed to protect consumers, including the Equal Credit Opportunity Act and Fair Housing Act, which mandate certain disclosure requirements[74]. - The Company has implemented policies and procedures to comply with anti-money laundering requirements, including maintaining an anti-money laundering program and undergoing annual independent audits[85]. - The Cybersecurity Information Sharing Act allows companies to monitor their systems and share cyber threat information with third parties, providing liability protections for such actions[80]. - The final rule to strengthen and modernize the CRA regulations will become effective on January 1, 2026, adapting to changes in the banking industry[83]. Financial Performance - Adjusted net income for 2024 is reported at $56,054,000, compared to $36,643,000 in 2023[376]. - The company reported net income of $22,050,000 for 2024, down from $35,663,000 in 2023[376]. - The diluted earnings per share (GAAP) for 2024 is $1.48, down from $3.42 in 2023[376]. - Total non-recurring expenses for 2024 amounted to $43,446,000, compared to $1,059,000 in 2023[376]. - The company incurred merger-related expenses of $22,671,000 in 2024, significantly up from $1,059,000 in 2023[371]. - Tangible book value per common share decreased to $21.19 in 2024 from $23.03 in 2023, primarily due to goodwill from the merger[373]. - The company’s shareholders' equity increased to $516,682,000 in 2024 from $265,056,000 in 2023[374]. Commitments and Obligations - Total contractual obligations amount to $1,229,177,000, with $1,061,986,000 due in less than one year[366]. - Off-balance sheet commitments include home equity lines of credit totaling $538,204,000 and commercial loans of $706,783,000[368]. Company Listing - The Company is listed on the Nasdaq Capital Market under the trading symbol "ORRF" and is subject to Nasdaq's rules for listed companies[89]. - The Company’s primary source of income is dividends received from the Bank, which is subject to restrictions on its ability to dividend funds[363].

Core Viewpoint - Orrstown Financial Services, Inc. has announced the promotion of Adam L. Metz to Senior Executive Vice President and Chief Operating Officer, with plans for him to succeed Thomas R. Quinn, Jr. as President and CEO upon Quinn's retirement in May 2026 [1][3]. Group 1: Leadership Changes - Adam L. Metz has been with the company since February 2019, previously serving as Executive Vice President and Chief Revenue Officer [2]. - Prior to his current role, Metz was the Executive Vice President and Chief Lending Officer from September 2016 to February 2019 [2]. - Thomas R. Quinn, Jr. praised Metz's understanding of the company's mission and values, highlighting his significant contributions to the bank's success over the past decade [3]. Group 2: Company Overview - Orrstown Financial Services, Inc. has $5.4 billion in assets and offers a variety of consumer and business financial services across multiple counties in Pennsylvania and Maryland [3]. - The company's lending area extends to adjacent counties in Pennsylvania and Maryland, as well as parts of Virginia and West Virginia [3]. - Orrstown Bank is an Equal Housing Lender, and its deposits are insured by the FDIC up to the legal maximum [3].

Core Viewpoint - Orrstown Financial Services, Inc. has appointed Barbara E. Brobst to its Board of Directors, effective February 1, 2025, enhancing its governance with her extensive experience in banking and human resources [1][2]. Group 1: Appointment Details - Barbara E. Brobst has over 40 years of banking experience, previously serving as Executive Vice President and Chief Human Resources Officer from 2015 to 2022 [2]. - Brobst's prior roles include Senior Vice President for Human Resources and Senior Trust Officer at Orrstown Bank, showcasing her long-standing commitment to the organization [2]. - The appointment is expected to provide valuable insights into wealth management and human capital management, particularly in the south-central Pennsylvania markets [3]. Group 2: Company Overview - Orrstown Financial Services, Inc. has $5.4 billion in assets and offers a variety of consumer and business financial services across multiple counties in Pennsylvania and Maryland [4]. - The company's lending area extends to adjacent counties in Pennsylvania and Maryland, as well as parts of Virginia and West Virginia [4]. - Orrstown Bank is an Equal Housing Lender, with deposits insured by the FDIC up to the legal maximum [4].

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 ...