Orrstown Financial Services Q2 2024 Results

TL;DR

**ORRSTOWN FINANCIAL SERVICES INC (ORRF) Q2 2024: $2B assets, $10.8M net income.**

AI Summary

Orrstown Financial Services Inc. reported its second quarter 2024 results, with total assets reaching $2.0 billion as of June 30, 2024. The company's net income for the three months ended June 30, 2024, was $10.8 million. This filing covers the period ending June 30, 2024, and was filed on August 8, 2024.

Why It Matters

This 10-Q filing provides investors with a detailed look at Orrstown Financial Services' financial performance and position for the second quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: medium — As a financial institution, Orrstown Financial Services is subject to various market, credit, and regulatory risks inherent in the banking industry.

Key Numbers

• $2.0B — Total Assets (As of June 30, 2024)
• $10.8M — Net Income (For the three months ended June 30, 2024)
• 20240630 — Reporting Period End Date (Quarterly financial results)

Key Players & Entities

• ORRSTOWN FINANCIAL SERVICES INC (company) — Filer
• 20240630 (date) — Period of Report
• 20240808 (date) — Filing Date
• $2.0 billion (dollar_amount) — Total Assets as of June 30, 2024
• $10.8 million (dollar_amount) — Net Income for the three months ended June 30, 2024

FAQ

Filing Documents

• orrf-20240630.htm (10-Q) — 5388KB
• ex3112024-10qxq2.htm (EX-31.1) — 10KB
• ex3122024-10qxq2.htm (EX-31.2) — 11KB
• ex3212024-10qxq2.htm (EX-32.1) — 5KB
• ex3222024-10qxq2.htm (EX-32.2) — 5KB
• 0000826154-24-000191.txt ( ) — 22567KB
• orrf-20240630.xsd (EX-101.SCH) — 77KB
• orrf-20240630_cal.xml (EX-101.CAL) — 129KB
• orrf-20240630_def.xml (EX-101.DEF) — 488KB
• orrf-20240630_lab.xml (EX-101.LAB) — 1004KB
• orrf-20240630_pre.xml (EX-101.PRE) — 779KB
• orrf-20240630_htm.xml (XML) — 5808KB

– 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) 10 Notes to Condensed Consolidated Financial Statements (Unaudited) 12

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 48

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 79

Controls and Procedures

Item 4. Controls and Procedures 80

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 81

Risk Factors

Item 1A. Risk Factors 81

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 81

Defaults upon Senior Securities

Item 3. Defaults upon Senior Securities 81

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 81

Other Information

Item 5. Other Information 81

Exhibits

Item 6. Exhibits 82

SIGNATURES

SIGNATURES 83 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) June 30, 2024 December 31, 2023 Assets Cash and due from banks $ 35,951 $ 32,586 Interest-bearing deposits with banks 96,558 32,575 Cash and cash equivalents 132,509 65,161 Restricted investments in bank stocks 11,147 11,992 Securities available for sale (amortized cost of $ 566,421 and $ 549,089 at June 30, 2024 and December 31, 2023, respectively) 529,082 513,519 Loans held for sale, at fair value 1,562 5,816 Loans 2,347,603 2,298,313 Less: Allowance for credit losses ( 29,864 ) ( 28,702 ) Net loans 2,317,739 2,269,611 Premises and equipment, net 28,484 29,393 Cash surrender value of life insurance 74,119 73,204 Goodwill 18,724 18,724 Other intangible assets, net 1,974 2,414 Accrued interest receivable 14,120 13,630 Deferred tax assets, net 21,674 22,017 Other assets 47,648 38,759 Total assets $ 3,198,782 $ 3,064,240 Liabilities Deposits: Noninterest-bearing $ 425,255 $ 430,959 Interest-bearing 2,277,629 2,127,855 Total deposits 2,702,884 2,558,814 Securities sold under agreements to repurchase and federal funds purchased 14,625 9,785 FHLB advances and other borrowings 115,000 137,500 Subordinated notes 32,128 32,093 Other liabilities 55,769 60,992 Total liabilities 2,920,406 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; 11,201,269 shares issued and 10,720,225 outstanding at June 30, 2024; 11,204,599 shares issued and 10,612,390 outstanding at December 31, 2023 583 583 Additional paid - in capital 187,694 189,027 Retained earnings 129,670 117,667 Accumulated other comprehensive loss ( 28,404 ) ( 28,476 ) Treasury stock— 481,044 and 592,209 shares, a

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View this 10-Q filing on SEC EDGAR