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 reported a net income of $9.2 million and diluted earnings per share (EPS) of $0.87 for Q1 2023, down from $9.6 million and $0.91 in Q4 2022. Year-over-year, net income rose from $8.4 million and EPS from $0.76. The return on average assets was 1.27% and return on average equity was 15.88%. Deposits grew by $39.4 million (6% annualized) despite economic uncertainty. The tangible book value per share increased to $20.50. However, the net interest margin decreased to 3.94% from 4.14% due to rising funding costs. Commercial loan growth was strong at $63.2 million (15% annualized). A cash dividend of $0.20 per share was declared, payable on May 16, 2023.
Orrstown Financial Services reported a robust turnaround in its financial performance for Q4 2022, posting a net income of $9.6 million and diluted earnings per share of $0.91, compared to a net loss of $4.8 million in Q3 2022. For the full year ended December 31, 2022, net income was $22.0 million with earnings per share of $2.06, down from $32.9 million and $2.96 respectively in 2021. The company experienced a significant increase in net interest income to $27.5 million during the fourth quarter, aided by a rising interest rate environment and loan growth. Noninterest expenses declined notably, enhancing overall profitability.
The Juniata Valley Bank and Orrstown Bank have announced a Purchase and Assumption Agreement for the sale of Orrstown's Path Valley branch in Spring Run, PA. Juniata will acquire approximately $31.7 million in deposit liabilities and certain assets of the branch. No loans will be part of the transaction, which is expected to close in Q2 2023, pending regulatory approvals. The Path Valley branch will continue operations under Orrstown until the closure, after which it will become part of Juniata's network. This move aims to enhance community banking services and support shareholders.
Orrstown Financial Services reported a net income of $5.4 million and diluted earnings per share of $0.52 for Q3 2022, a decline from $8.9 million and $0.83 in Q2 2022. Excluding a $3.2 million restructuring charge, net income would be $7.9 million with $0.75 EPS. Net interest income grew to $25.5 million, while net interest margin increased to 3.92%. However, noninterest income fell to $6.1 million amid declining mortgage banking income. The board announced a quarterly dividend of $0.19 per share.
Orrstown Financial Services, Inc. (NASDAQ: ORRF) announced cost-saving initiatives, including closing five branches and staff adjustments, to enhance long-term growth and operational efficiency. A one-time pre-tax charge of approximately $3.1 million will be recorded in Q3 2022, while expected annual savings of $3.4 million will stem from these measures. The closures will reduce the number of branches by 43% since 2019, increasing the average branch size significantly. The company aims to invest in technology and wage adjustments to support its evolving client needs.
Orrstown Financial Services reported a net income of $8.9 million for Q2 2022, up from $8.4 million in the previous quarter, with diluted earnings per share rising to $0.83.
Key metrics include a return on average assets of 1.25% and a net interest margin of 3.68%. Commercial loan growth reached $125.9 million, a 34% annualized increase. Noninterest income dropped slightly to $7.2 million, while noninterest expenses decreased to $18.8 million.
The company repurchased 407,824 shares and declared a cash dividend of $0.19, payable August 8, 2022.
Orrstown Financial Services reported net income of $8.4 million ($0.76 per diluted share) for Q1 2022, up from $6.7 million in Q4 2021. The net interest margin rose to 3.49% from 3.35%.
Commercial loans grew by $59.7 million (17% annualized), while consumer loans increased by $6.0 million (6% annualized). Noninterest income totaled $7.5 million. Noninterest expenses decreased to $19.4 million.
Dividend of $0.19 per share declared, payable on May 9, 2022.
Orrstown Financial Services, Inc. (NASDAQ: ORRF) has appointed Meera R. Modi to its Board of Directors and the Board of its subsidiary, Orrstown Bank, effective immediately. Modi, a member of McNees Wallace & Nurick LLC, brings expertise in mergers and acquisitions, corporate governance, and financing. Chairman Joel Zullinger expressed confidence in her alignment with the company's mission. Modi, an active community member with multiple accolades, is excited to contribute to Orrstown's growth and expansion into new markets.
Orrstown Financial Services reported a net income of $32.9 million and diluted EPS of $2.96 for 2021, up from $26.5 million and $2.40 in 2020. Q4 2021 net income was $6.7 million with diluted EPS of $0.60, down from $0.91 in Q4 2020. Commercial loans grew 34% annualized in Q4 2021, with a total increase of $268.3 million or 24% for the year. Net interest margin improved to 3.35% as excess liquidity was redeployed. The Board declared a dividend of $0.19 per share payable on February 8, 2022.
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