Orrstown Financial Services Inc
NASDAQ:ORRF
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Orrstown Financial Services Inc
Orrstown Financial Services, Inc. is a holding company, which engages in the provision of consumer and business financial services. The company is headquartered in Shippensburg, Pennsylvania and currently employs 412 full-time employees. The firm provides banking and financial advisory services located in south central Pennsylvania, principally in Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry and York Counties, Pennsylvania, and in Anne Arundel, Baltimore, Howard and Washington Counties, Maryland, as well as Baltimore City, Maryland. The company operates in the community banking segment and engages in lending activities, including commercial, residential, commercial mortgages, construction, municipal and various forms of consumer lending and deposit services, including checking, savings, time and money market deposits. The company also provides fiduciary, investment advisory, insurance and brokerage services. The Bank makes commercial real estate, equipment, construction, working capital and other commercial purpose loans to commercial clients. The Bank also provides home equity loans, home equity lines of credit and other consumer loans.
Orrstown Financial Services, Inc. is a holding company, which engages in the provision of consumer and business financial services. The company is headquartered in Shippensburg, Pennsylvania and currently employs 412 full-time employees. The firm provides banking and financial advisory services located in south central Pennsylvania, principally in Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry and York Counties, Pennsylvania, and in Anne Arundel, Baltimore, Howard and Washington Counties, Maryland, as well as Baltimore City, Maryland. The company operates in the community banking segment and engages in lending activities, including commercial, residential, commercial mortgages, construction, municipal and various forms of consumer lending and deposit services, including checking, savings, time and money market deposits. The company also provides fiduciary, investment advisory, insurance and brokerage services. The Bank makes commercial real estate, equipment, construction, working capital and other commercial purpose loans to commercial clients. The Bank also provides home equity loans, home equity lines of credit and other consumer loans.
Record Earnings: Orrstown posted its highest annual net income ever at $80.9 million and strong fourth quarter results with $21.5 million in net income.
Margin Stability: Net interest margin stayed robust at 4.0% in Q4, though down from 4.11% last quarter, with management expecting it to remain in the 3.90% to 4% range for 2026.
Loan Growth: Loans grew 4% in the quarter and management targets 5% or better growth for 2026.
Fee Income Expansion: Noninterest income hit a record $14.4 million in Q4 and is guided at $13–14 million per quarter for 2026, driven by investments in talent and new business lines.
Dividend Hike: The quarterly dividend was raised by $0.03 to $0.30 per share, marking the fourth increase in 18 months.
Credit Quality: Credit quality remains strong with minimal provision expense, reduced classified loans, and a healthy reserve ratio.
Expense Guidance: Noninterest expenses are expected to run around $37 million per quarter, reflecting ongoing investments in talent and growth.
Capital Strength: Capital ratios increased quarter-to-quarter and the company remains well capitalized.
Conservative Guidance: Management expects to at least meet, if not exceed, current analyst consensus for 2026.
