Orrstown Financial Services(ORRF) - 2025 Q1 - Quarterly Results

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$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$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$0.26 from $0.20 year-over-year, marking a 30$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$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].