Orrstown Financial Services, Inc. ("Orrstown" or the “Company”) closed the merger of equals transaction with Codorus Valley Bancorp, Inc. ("Codorus") on July 1, 2024, creating a premier Pennsylvania and Maryland community bank; as a result, the Company's results for the three months ended September 30, 2024 reflect the combined operating results of the combined companies;Codorus contributed, after fair value purchase accounting adjustments, approximately $2.2 billion in total assets, $1.6 billion in loans, ...

A strong focus on stability of earnings and asset quality rather than fast growth makes Orrstown Financial Services (NASDAQ: ORRF ) one of the preferred stocks for dividend investors. The stock has seen tremendous upside (45%) since the anticipation of Analyst'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 re ...

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yiel ...

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures ...

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors o ...

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yie ...

Orrstown Financial Services (ORRF) came out with quarterly earnings of $0.83 per share, beating the Zacks Consensus Estimate of $0.73 per share. This compares to earnings of $0.94 per share a year ago. These figures are adjusted for non-recurring items. Over the last four quarters, the company has surpassed consensus EPS estimates four times. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's c ...

Financial Performance - Net income for Q2 2024 was $7.7 million, down from $8.5 million in Q1 2024, with diluted earnings per share at $0.73 compared to $0.81 in Q1 2024[6] - Excluding merger-related expenses, net income for Q2 2024 was $8.7 million, and diluted earnings per share were $0.83, compared to $9.2 million and $0.88 in Q1 2024[6] - Net income for the three months ended June 30, 2024, excluding merger-related expenses, was $5.5 million[24] - Net income for Q2 2024 was $7,738,000, down from $9,838,000 in Q2 2023, representing a decrease of 21.3%[34] - Basic earnings per share for Q2 2024 were $0.74, compared to $0.95 in Q2 2023, a decline of 22.1%[34] - Adjusted net income for June 30, 2024, was $8,734, compared to $9,202 for March 31, 2024, reflecting a decrease of 5.1%[48] - Basic earnings per share, adjusted for June 30, 2024, was $0.84, compared to $0.89 for March 31, 2024, showing a decline of 5.6%[48] - Return on average assets for the quarter was 0.97%, down from 1.32% in the same quarter last year[42] - Return on average equity was 11.41% for the quarter, compared to 16.27% in June 30, 2023[42] Income and Expenses - Noninterest income rose by $0.6 million to $7.2 million in Q2 2024 compared to $6.6 million in Q1 2024[17] - Total noninterest income for June 30, 2024, reached $7,172, an increase from $6,630 in March 31, 2024, representing a growth of 8.2%[50] - Total noninterest expenses increased to $22,639,000 from $20,749,000 year-over-year, reflecting a rise of 9.1%[32] - Total noninterest expenses for June 30, 2024, were $22,639, up from $22,469 in March 31, 2024, indicating an increase of 0.8%[50] - The company reported a provision for credit losses of $812,000, up from $399,000 in the same quarter last year[32] Loans and Credit Quality - Loans held for investment increased by $44.5 million, or 8% annualized, from Q1 2024 to Q2 2024, with commercial loans rising by $41.9 million, or 9% annualized[8] - Nonaccrual loans decreased to $8.4 million at June 30, 2024, down from $12.9 million at March 31, 2024, representing a decline of $4.5 million[6] - Non-performing loans totaled $8.9 million, with classified loans at $45.5 million as of June 30, 2024[24] - The allowance for credit losses on loans increased to $29.9 million at June 30, 2024, driven by loan growth, maintaining an ACL to total loans ratio of 1.27%[16] - The allowance for credit losses to total loans ratio remained stable at 1.27% as of June 30, 2024, consistent with the previous quarter[52] - Net charge-offs for the quarter were reported at $113 thousand, a decrease from a recovery of $(42) thousand in the previous quarter[52] Capital and Equity - Shareholders' equity increased to $278.4 million as of June 30, 2024, from $271.7 million at March 31, 2024, driven by net income of $7.7 million[22] - Tangible book value per share rose to $24.08 at June 30, 2024, compared to $23.47 at March 31, 2024, reflecting the increase in shareholders' equity[24] - The total shareholders' equity increased to $278,376 thousand from $271,682 thousand in March 2024, marking a growth of 2.55%[51] - Tier 1 risk-based capital ratio for Orrstown Financial Services, Inc. was reported at 11.1% as of June 30, 2024, slightly down from 11.2% in March 2024[52] Mergers and Acquisitions - Merger-related expenses totaled $1.1 million in Q2 2024, up from $0.7 million in Q1 2024, with additional expenses expected as integration continues[20] - The company completed a merger with Codorus Valley Bancorp, which had assets of $2.2 billion, including total loans of $1.7 billion and total deposits of $1.9 billion[61] - Merger-related expenses for June 30, 2024, totaled $1,135, compared to $672 for March 31, 2024, reflecting a significant increase of 68.9%[50] Market and Operational Strategy - The company plans to continue focusing on market expansion and enhancing its product offerings in the upcoming quarters[32] - The company operates in multiple counties across Pennsylvania and Maryland, providing a wide range of financial services[61] Asset Management - Total assets reached $2.2 billion, with total loans at $1.7 billion and total deposits at $1.9 billion as of June 30, 2024[24] - Total assets increased to $3,211,124 thousand, up from $3,098,772 thousand, representing a growth of 3.6%[36] - Total assets as of June 30, 2024, were $3,154,948 thousand, an increase from $2,961,427 thousand as of June 30, 2023[38] - Total liabilities rose to $2,938,336 thousand, compared to $2,830,483 thousand, marking an increase of 3.8%[36] Interest Income and Margin - Net interest margin decreased to 3.54% in Q2 2024 from 3.77% in Q1 2024, impacted by an increase in funding costs[15] - The net interest margin for the three months ended June 30, 2024, was 3.28%[24] - Total interest income for Q2 2024 reached $43,281,000, up 17.5% from $36,901,000 in Q2 2023[32] - Net interest income after provision for credit losses was $25,291,000, slightly down from $25,976,000 in the same quarter last year[32] - The average interest rate on interest-bearing demand deposits was 2.47%, an increase from 2.35% in the previous quarter[36] - The taxable-equivalent net interest margin was reported at 3.02%[36] Efficiency and Performance Ratios - The efficiency ratio for the three months ended June 30, 2024, was 68.0%, compared to 61.9% for the same period in 2023[27] - The adjusted efficiency ratio was 64.6% for the three months ended June 30, 2024, slightly down from 65.0% in the previous quarter[57] Investment Portfolio - The investment security portfolio had a fair value of $528,973K, with 97% guaranteed by the U.S. government[59] - The credit ratings for the investment portfolio included 6% rated AAA, 83% rated AA, and 4% rated A[59] Risks and Forward-Looking Statements - The company emphasizes the potential risks associated with forward-looking statements, including economic conditions and competition[62] - The company’s common stock is traded on Nasdaq under the ticker ORRF[61]

Core Insights - Orrstown Financial Services, Inc. completed a merger with Codorus Valley Bancorp, significantly increasing the company's size and scale, which is expected to enhance profitability and shareholder value [2][3] Financial Performance - For the three months ended June 30, 2024, net income was $7.7 million, down from $8.5 million in the previous quarter and $9.8 million in the same quarter last year [1][10] - Diluted earnings per share for the same period were $0.73, compared to $0.81 in the first quarter of 2024 and $0.94 in the second quarter of 2023 [1][10] - Excluding merger-related expenses, net income and diluted earnings per share were $8.7 million and $0.83, respectively, for the second quarter of 2024 [1][10] Balance Sheet Highlights - Loans held for investment increased by $44.5 million, or 8% annualized, from March 31, 2024, to June 30, 2024 [3] - Total assets reached approximately $3.2 billion as of June 30, 2024, up from $3.1 billion at the end of the previous quarter [11] - Nonaccrual loans decreased to $8.4 million, down from $12.9 million at March 31, 2024 [1][19] Income Statement Analysis - Net interest income for the second quarter of 2024 was $26.1 million, a slight decrease from $26.9 million in the first quarter [5][19] - The net interest margin decreased to 3.54% in the second quarter from 3.77% in the first quarter, impacted by higher funding costs [5][19] - Non-interest income increased by $0.6 million to $7.2 million for the three months ended June 30, 2024, compared to the previous quarter [1][19] Capital and Dividends - Shareholders' equity increased to $278.4 million at June 30, 2024, from $271.7 million at March 31, 2024, primarily due to net income [19] - The Board declared a cash dividend of $0.23 per common share, representing a 15% increase from the previous quarter [1][10] Loan and Deposit Trends - Total deposits remained stable at approximately $2.7 billion, with time deposits increasing by $32.5 million [4][19] - The loan-to-deposit ratio increased slightly to 87% at June 30, 2024, from 85% at March 31, 2024 [4][19] Merger-Related Insights - The merger with Codorus Valley Bancorp is expected to yield cost savings and integration benefits, with a timeline for completion by November 2024 [2][19] - Merger-related expenses totaled $1.1 million for the second quarter of 2024, an increase from $0.7 million in the first quarter [1][19]

Zacks Consensus Estimate The consensus EPS estimate for the quarter has been revised 3.23% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising t ...