Orrstown Financial Services Inc. Files Q1 2024 10-Q Report

TL;DR

<b>Orrstown Financial Services Inc. has filed its Q1 2024 10-Q report, detailing financial performance and operations for the first quarter.</b>

AI Summary

ORRSTOWN FINANCIAL SERVICES INC (ORRF) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. Orrstown Financial Services Inc. filed its 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's fiscal year ends on December 31. The filing was made on May 9, 2024. The company's principal business is Commercial Banks (SIC 6022).

Why It Matters

For investors and stakeholders tracking ORRSTOWN FINANCIAL SERVICES INC, this filing contains several important signals. This 10-Q filing provides investors with a quarterly update on Orrstown Financial Services Inc.'s financial health, operational performance, and any significant developments since the last report. Understanding the details within this filing is crucial for assessing the company's current financial standing, identifying trends, and making informed investment decisions regarding ORRF.

Risk Assessment

Risk Level: low — ORRSTOWN FINANCIAL SERVICES INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not indicate any immediate or significant financial distress or unusual events based on the provided header information.

Analyst Insight

Review the detailed financial statements and management discussion within the full 10-Q filing to understand the company's performance and outlook.

Key Numbers

• 2024-03-31 — Period of Report (CONFORMED PERIOD OF REPORT)
• 2024-05-09 — Filing Date (FILED AS OF DATE)
• 6022 — Standard Industrial Classification (STANDARD INDUSTRIAL CLASSIFICATION)
• PA — State of Incorporation (STATE OF INCORPORATION)
• 1231 — Fiscal Year End (FISCAL YEAR END)

Key Players & Entities

• ORRSTOWN FINANCIAL SERVICES INC (company) — FILER
• ORRF (company) — tk
• 77 E KING STREET (company) — BUSINESS ADDRESS
• SHIPPENSBURG (company) — BUSINESS ADDRESS CITY
• PA (company) — BUSINESS ADDRESS STATE
• 17257 (company) — BUSINESS ADDRESS ZIP
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-05-09 (date) — FILED AS OF DATE

FAQ

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-09: Filing Date — Date the 10-Q report was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a continuing disclosure by public companies. (This filing provides a periodic update on the company's financial performance and condition.)

SIC

Standard Industrial Classification code used to classify businesses based on their primary activity. (Indicates Orrstown Financial Services Inc. operates within the Commercial Banks sector.)

Filing Documents

• orrf-20240331.htm (10-Q) — 4789KB
• ex3112024-10qxq1.htm (EX-31.1) — 10KB
• ex3122024-10qxq1.htm (EX-31.2) — 11KB
• ex3212024-10qxq1.htm (EX-32.1) — 5KB
• ex3222024-10qxq1.htm (EX-32.2) — 5KB
• 0000826154-24-000096.txt (&nbsp;) — 21059KB
• orrf-20240331.xsd (EX-101.SCH) — 75KB
• orrf-20240331_cal.xml (EX-101.CAL) — 125KB
• orrf-20240331_def.xml (EX-101.DEF) — 477KB
• orrf-20240331_lab.xml (EX-101.LAB) — 970KB
• orrf-20240331_pre.xml (EX-101.PRE) — 754KB
• orrf-20240331_htm.xml (XML) — 5466KB

– FINANCIAL INFORMATION

Part I – FINANCIAL INFORMATION Glossary of Defined Terms 3

Financial Statements

Item 1. Financial Statements 4 Condensed Consolidated Balance Sheets (Unaudited) 4 Condensed Consolidated Statements of Income (Unaudited) 5 Condensed Consolidated Statements of Comprehensive Income (Unaudited) 7 Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) 8 Condensed Consolidated Statements of Cash Flows (Unaudited) 9 Notes to Condensed Consolidated Financial Statements (Unaudited) 11

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 46

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 68

Controls and Procedures

Item 4. Controls and Procedures 70

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 71

Risk Factors

Item 1A. Risk Factors 71

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 71

Defaults upon Senior Securities

Item 3. Defaults upon Senior Securities 71

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 71

Other Information

Item 5. Other Information 71

Exhibits

Item 6. Exhibits 72

SIGNATURES

SIGNATURES 73 2 Table of Contents Glossary of Defined Terms The following terms may be used throughout this Report, including the unaudited condensed consolidated financial statements and related notes. Term Definition ACL Allowance for credit losses AFS Available-for-sale AOCI Accumulated other comprehensive income (loss) ASC Accounting Standards Codification ASU Accounting Standards Update Bank Orrstown Bank, the commercial banking subsidiary of Orrstown Financial Services, Inc. CECL Current expected credit losses CMO Collateralized mortgage obligation Codorus Valley Codorus Valley Bancorp, Inc. DCF Discounted cash flow ERM Enterprise Risk Management Exchange Act Securities Exchange Act of 1934, as amended FASB Financial Accounting Standards Board FDIC Federal Deposit Insurance Corporation FDM Financial difficulty modification FHLB Federal Home Loan Bank FOMC Federal Open Market Committee FRB Board of Governors of the Federal Reserve System GAAP Accounting principles generally accepted in the United States of America GDP Gross Domestic Product GSE U.S. government-sponsored enterprise IEL Individually evaluated loan IRC Internal Revenue Code of 1986, as amended LHFS Loans held for sale MBS Mortgage-backed securities MSR Mortgage servicing right OCI Other comprehensive income (loss) OREO Other real estate owned (foreclosed real estate) 2011 Plan 2011 Orrstown Financial Services, Inc. Incentive Stock Plan PACE Property Assessed Clean Energy loans PCD loans Purchased credit deteriorated loans PCE Personal Consumption Expenditures PPP Paycheck Protection Program ReRemic Re-securitization of Real Estate Mortgage Investment Conduits ROU Right of use (leases) SBA U.S. Small Business Administration SEC Securities and Exchange Commission Securities Act Securities Act of 1933, as amended SOFR Secured Overnight Financing Rate TDR Troubled debt restructuring Unless the context otherwise requires, the terms "Orrs

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Condensed Consolidated Balance Sheets (Unaudited) ORRSTOWN FINANCIAL SERVICES, INC. (Dollars in thousands, except per share amounts) March 31, 2024 December 31, 2023 Assets Cash and due from banks $ 23,552 $ 32,586 Interest-bearing deposits with banks 159,170 32,575 Cash and cash equivalents 182,722 65,161 Restricted investments in bank stocks 11,453 11,992 Securities available for sale (amortized cost of $ 552,155 and $ 549,089 at March 31, 2024 and December 31, 2023, respectively) 514,909 513,519 Loans held for sale, at fair value 535 5,816 Loans 2,303,073 2,298,313 Less: Allowance for credit losses ( 29,165 ) ( 28,702 ) Net loans 2,273,908 2,269,611 Premises and equipment, net 28,952 29,393 Cash surrender value of life insurance 73,656 73,204 Goodwill 18,724 18,724 Other intangible assets, net 2,189 2,414 Accrued interest receivable 13,496 13,630 Deferred tax assets, net 21,181 22,017 Other assets 41,606 38,759 Total assets $ 3,183,331 $ 3,064,240 Liabilities Deposits: Noninterest-bearing $ 418,512 $ 430,959 Interest-bearing 2,277,439 2,127,855 Total deposits 2,695,951 2,558,814 Securities sold under agreements to repurchase and federal funds purchased 12,099 9,785 FHLB advances and other borrowings 115,000 137,500 Subordinated notes 32,111 32,093 Other liabilities 56,488 60,992 Total liabilities 2,911,649 2,799,184 Commitments and contingencies Shareholders' Equity Preferred stock, $ 1.25 par value per share; 500,000 shares authorized; no shares issued or outstanding — — Common stock, no par value—$ 0.05205 stated value per share; 50,000,000 shares authorized; 11,203,221 shares issued and 10,705,077 outstanding at March 31, 2024; 11,204,599 shares issued and 10,612,390 outstanding at December 31, 2023 583 583 Additional paid - in capital 187,267 189,027 Retained earnings 124,075 117,667 Accumulated other comprehensive loss ( 28,668 ) ( 28,476 ) Treasury stock— 498,144 and 592,209 shares,

View Full Filing

View this 10-Q filing on SEC EDGAR