Orrstown Financial Services Inc. Files Q3 2024 10-Q

TL;DR

ORRSTOWN FINANCIAL SERVICES INC filed their Q3 2024 10-Q. Check financials.

AI Summary

Orrstown Financial Services Inc. filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and position. Key financial data and disclosures relevant to investors and regulators are presented.

Why It Matters

This filing provides investors with a detailed look at Orrstown Financial Services Inc.'s financial health and operational performance for the third quarter of 2024, influencing investment decisions.

Risk Assessment

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

Key Numbers

• 2024-09-30 — Period End Date (Indicates the end of the reporting quarter.)
• 2024-11-12 — Filing Date (The date the report was officially submitted to the SEC.)
• 2023-12-31 — Previous Year End (Provides a comparison point to the prior fiscal year end.)

Key Players & Entities

• ORRSTOWN FINANCIAL SERVICES INC (company) — Filer
• 20240930 (date) — Period of Report
• 20241112 (date) — Filing Date
• PA (location) — State of Incorporation
• 6022 (industry_code) — Standard Industrial Classification

FAQ

Filing Documents

• orrf-20240930.htm (10-Q) — 5842KB
• exhibit102.htm (EX-10.2) — 6KB
• ex3112024-10qxq3.htm (EX-31.1) — 10KB
• ex3122024-10qxq3.htm (EX-31.2) — 11KB
• ex3212024-10qxq3.htm (EX-32.1) — 5KB
• ex3222024-10qxq3.htm (EX-32.2) — 5KB
• 0000826154-24-000223.txt ( ) — 26155KB
• orrf-20240930.xsd (EX-101.SCH) — 100KB
• orrf-20240930_cal.xml (EX-101.CAL) — 169KB
• orrf-20240930_def.xml (EX-101.DEF) — 664KB
• orrf-20240930_lab.xml (EX-101.LAB) — 1250KB
• orrf-20240930_pre.xml (EX-101.PRE) — 987KB
• orrf-20240930_htm.xml (XML) — 6645KB

– 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 Operations (Unaudited) 5 Condensed Consolidated Statements of Comprehensive Income (Loss) (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 55

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 85

Controls and Procedures

Item 4. Controls and Procedures 86

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 87

Risk Factors

Item 1A. Risk Factors 87

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 87

Defaults upon Senior Securities

Item 3. Defaults upon Senior Securities 87

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 87

Other Information

Item 5. Other Information 87

Exhibits

Item 6. Exhibits 88

SIGNATURES

SIGNATURES 89 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 or CVB 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 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 "Orrstown," "we," "us," "our," a

– 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) September 30, 2024 December 31, 2023 Assets Cash and due from banks $ 65,064 $ 32,586 Interest-bearing deposits with banks 171,716 32,575 Cash and cash equivalents 236,780 65,161 Restricted investments in bank stocks 20,247 11,992 Securities available for sale (amortized cost of $ 845,869 and $ 549,089 at September 30, 2024 and December 31, 2023, respectively) 826,828 513,519 Loans held for sale, at fair value 3,561 5,816 Loans 3,981,437 2,298,313 Less: Allowance for credit losses ( 49,630 ) ( 28,702 ) Net loans 3,931,807 2,269,611 Premises and equipment, net 49,839 29,393 Cash surrender value of life insurance 142,895 73,204 Goodwill 70,655 18,724 Other intangible assets, net 46,144 2,414 Accrued interest receivable 20,562 13,630 Deferred tax assets, net 38,517 22,017 Other assets 82,754 38,759 Total assets $ 5,470,589 $ 3,064,240 Liabilities Deposits: Noninterest-bearing $ 815,404 $ 430,959 Interest-bearing 3,835,449 2,127,855 Total deposits 4,650,853 2,558,814 Securities sold under agreements to repurchase and federal funds purchased 21,932 9,785 FHLB advances and other borrowings 115,378 137,500 Subordinated notes and trust preferred debt 68,510 32,093 Other liabilities 97,710 60,992 Total liabilities 4,954,383 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; 19,729,307 shares issued and 19,373,354 outstanding at September 30, 2024; 11,204,599 shares issued and 10,612,390 outstanding at December 31, 2023 1,027 583 Additional paid - in capital 422,177 189,027 Retained earnings 117,311 117,667 Accumulated other comprehensive loss ( 15,888 ) ( 28,476 )

View Full Filing

View this 10-Q filing on SEC EDGAR