Orrstown Financial Services(US:ORRF)2026-01-28 12:59Financial Performance - Net income for Q4 2025 was $21.5 million, or $1.11 per diluted share, compared to $21.9 million, or $1.13 per diluted share in Q3 2025[3] - For the year ended December 31, 2025, net income totaled $80.9 million, with diluted earnings per share of $4.18, compared to $22.1 million and $1.48 for 2024[3] - Basic earnings per share increased to $1.12 for Q4 2025, compared to $0.72 in Q4 2024, demonstrating significant growth in profitability[29] - Net income for the twelve months ended December 31, 2025, reached $80,855,000, significantly higher than $22,050,000 in 2024, marking a growth of 267.5%[33] - Net income for the quarter was $21,491 thousand, a significant increase from $13,684 thousand in the same quarter of the previous year, representing a growth of 56.8%[51] Income and Expenses - Noninterest income rose by $1.0 million to $14.4 million in Q4 2025, driven by growth in wealth management and swap fees[18] - Noninterest expenses increased by $1.1 million to $37.4 million in Q4 2025, primarily due to higher healthcare and professional service costs[20] - Total noninterest expenses decreased to $37,355,000 in Q4 2025 from $42,930,000 in Q4 2024, a reduction of 12.5%[33] - Adjusted noninterest expense for the twelve months ended December 31, 2025, was $146,825,000, compared to $120,396,000 in 2024, an increase of 22%[54] Asset and Loan Growth - Total loans increased by $41.0 million, or approximately 4% annualized, from Q3 2025 to Q4 2025, totaling $4.0 billion[5] - Total assets increased to $5.542 billion at December 31, 2025, compared to $5.442 billion at December 31, 2024, indicating growth in the asset base[30] - Total interest-earning assets increased to $4,995,061,000 in 2025 from $3,991,148,000 in 2024, reflecting a growth of approximately 25.2%[37] - Average balances of loans increased to $3,945,723,000 in 2025 from $3,150,425,000 in 2024, a growth of approximately 25.3%[37] Capital and Equity - Shareholders' equity increased to $591.5 million at December 31, 2025, up from $571.9 million at September 30, 2025, driven by net income of $21.5 million and other comprehensive income of $2.3 million[24] - The tangible book value per common share rose to $25.21 at December 31, 2025, compared to $24.12 at September 30, 2025, reflecting a stronger capital position[25] - The Company’s total risk-based capital ratio improved to 13.3% at December 31, 2025, compared to 12.4% at December 31, 2024, reflecting enhanced capital adequacy[30] Profitability Ratios - The return on average assets was 1.55% and return on average equity was 14.73% for Q4 2025, compared to 1.60% and 15.72% in Q3 2025[3] - The Company reported a return on average tangible common equity of 18.15% for Q4 2025, down from 19.70% in Q3 2025, attributed to an increase in average shareholders' equity[25] - Return on average tangible equity was 18.15% for the quarter ended December 31, 2025, compared to 13.62% a year earlier, indicating improved profitability[51] Dividend Information - The Board of Directors declared a cash dividend of $0.30 per common share, representing a $0.03 increase from the previous quarter[3] - Dividends paid per share increased to $0.27 in Q4 2025 from $0.23 in Q4 2024, reflecting a growth of 17.4%[34] Credit Quality - Classified loans decreased by $5.7 million to $58.4 million at December 31, 2025, while non-accrual loans increased to $28.0 million[17] - The allowance for credit losses to total loans ratio was 1.19% as of December 31, 2025, compared to 1.24% a year earlier, indicating improved credit quality[45] - The provision for credit losses on loans was $75,000 in Q4 2025, a significant decrease from $2,617,000 in Q4 2024[33] Market and Economic Factors - The company emphasizes that forward-looking statements are based on current expectations and are subject to risks and uncertainties that could lead to actual results differing materially from those anticipated[57] - Factors affecting future performance include interest rate changes, economic conditions, competition, and changes in consumer behavior[57] - The company warns that reliance on forward-looking statements should be limited, as they may not be updated publicly after the date made[58]