Welcome to our dedicated page for Orrstown Financial Services news (Ticker: ORRF), a resource for investors and traders seeking the latest updates and insights on Orrstown Financial Services stock.
Orrstown Financial Services Inc. (NASDAQ: ORRF) is a prominent holding company involved in the commercial banking and trust business. The company, along with its fully-owned subsidiary Orrstown Bank, delivers a comprehensive suite of financial services to both consumers and businesses. With over $1.2 billion in assets, Orrstown operates twenty banking offices and two remote service facilities across Cumberland, Franklin, and Perry Counties in Pennsylvania and Washington County, Maryland.
Orrstown Bank offers a wide array of deposit services including checking, savings, time, and money market deposits. In addition to traditional banking services, the company provides investment and brokerage services through its Financial Advisors division. The bank is an Equal Housing Lender and a member of the FDIC, ensuring trust and security for its customers.
The company specializes in various forms of lending services, such as commercial, residential, commercial mortgages, construction, municipal, and consumer lending. Orrstown earns significant revenue from fees associated with its deposit clients, including transaction-based fees, account maintenance fees, overdraft services, and wealth management fees. The company also generates revenue through investment brokerage and trust contracts.
Recent Achievements and Financial Updates:
- As of June 30, 2023, Orrstown had $7.2 million in SBA PPP loans, net of deferred fees and costs. This balance reflects ongoing management and adaptation to financial landscapes.
- On January 1, 2023, the company adopted the new CECL standard, which resulted in a $2.4 million cumulative-effect adjustment that increased the allowance for credit losses.
- The company's investment security portfolio, excluding equity securities, showcases a diverse array of credit ratings and collateral, ensuring robust financial health and stability.
Orrstown Financial Services Inc. is committed to being a reliable and community-centered banking institution. With a strong emphasis on customer service and a broad range of financial products, Orrstown continues to play a vital role in the regional economy.
Orrstown Financial Services, Inc. reported its third quarter 2024 results, reflecting the merger with Codorus Valley Bancorp, Inc. The merger added $2.2 billion in assets, $1.6 billion in loans, and $1.9 billion in deposits. The company posted a net loss of $7.9 million, or $0.41 per diluted share, due to $17 million in merger-related expenses, $15.5 million in credit loss provisions, and $4.8 million for executive retirement. Excluding these, net income was $21.4 million, or $1.11 per diluted share. Net interest margin increased to 4.14%, with noninterest income rising to $12.4 million. Return on average assets was -0.57%, and return on average equity was -5.85%, but excluding non-recurring charges, these figures improved to 1.55% and 15.85%, respectively. The Board declared a $0.23 per share dividend, payable on November 12, 2024.
Orrstown Financial Services reported Q2 2024 results with a net income of $7.7 million and diluted EPS of $0.73, down from $8.5 million and $0.81 in Q1 2024. Excluding $1 million in merger-related expenses, net income and EPS were $8.7 million and $0.83, respectively. The net interest margin fell to 3.54% from 3.77% in Q1 2024. Nonaccrual loans dropped to $8.4 million from $12.9 million in Q1 2024. Non-interest income increased to $7.2 million from $6.6 million in Q1 2024, while non-interest expenses grew slightly to $22.6 million. The company declared a dividend increase of $0.03 per share, payable on August 15, 2024.
Orrstown Financial Services and Codorus Valley Bancorp have completed their merger of equals, creating a leading community bank in Pennsylvania and Maryland. The combined entity will operate under the name Orrstown Financial Services, trading on NASDAQ under the ticker ORRF. Clients will continue to use their respective banks' services until a full system integration expected in November 2024. The merged company will have administrative headquarters in Harrisburg, PA, and an operations center in York, PA. The Board of Directors will include members from both companies, reflecting a balance in leadership. Codorus Valley shareholders received 0.875 shares of Orrstown common stock per Codorus Valley share, making up approximately 44% of the new entity. The merger aims to enhance value for clients, shareholders, community partners, and employees.
Orrstown Financial Services and Codorus Valley Bancorp have received regulatory approvals for their merger of equals from the Federal Reserve Board and the Pennsylvania Department of Banking and Securities. This merger, anticipated to close on July 1, 2024, will combine their extensive financial service operations across Pennsylvania, Maryland, and parts of Virginia and West Virginia. Orrstown, traded as ORRF on NASDAQ, and Codorus Valley, traded as CVLY, aim to enhance their market presence and service offerings through this strategic partnership.
On May 30, 2024, Orrstown Financial Services (NASDAQ: ORRF) and Codorus Valley Bancorp (NASDAQ: CVLY) announced shareholder approvals for their previously announced merger of equals. This approval includes the merger of Codorus Valley into Orrstown, with Orrstown as the surviving entity, under the Merger Agreement dated December 12, 2023. The merger aims to create significant shareholder value, enhance employee and client opportunities, and build a premier community banking franchise in Pennsylvania and Maryland. The merger is expected to close in Q3 2024, pending regulatory approvals.
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