Orrstown Financial Services Files 8-K on Disposal Costs
Ticker: ORRF · Form: 8-K · Filed: Aug 5, 2024 · CIK: 826154
| Field | Detail |
|---|---|
| Company | Orrstown Financial Services Inc (ORRF) |
| Form Type | 8-K |
| Filed Date | Aug 5, 2024 |
| Risk Level | medium |
| Pages | 5 |
| Reading Time | 6 min |
| Key Dollar Amounts | $534 thousand, $1.7 million, $123 million |
| Sentiment | neutral |
Sentiment: neutral
Topics: disposal, restructuring, financial-statements
Related Tickers: ORRF
TL;DR
ORRSTOWN FINANCIAL SERVICES (ORRF) files 8-K on disposal costs. Potential restructuring ahead.
AI Summary
On August 5, 2024, Orrstown Financial Services, Inc. filed an 8-K report detailing cost associated with exit or disposal activities. The filing includes financial statements and exhibits related to these activities. The company is incorporated in Pennsylvania and its principal executive offices are located at 4750 Lindle Road, Harrisburg, PA.
Why It Matters
This filing indicates Orrstown Financial Services is undergoing restructuring or divesting assets, which could impact its future financial performance and strategic direction.
Risk Assessment
Risk Level: medium — Disposal activities can signal financial distress or significant strategic shifts, warranting closer examination of the company's financial health and future prospects.
Key Numbers
- 001-34292 — SEC File Number (Identifies the company's filing with the SEC.)
- 23-2530374 — IRS Employer Identification No. (Company's tax identification number.)
Key Players & Entities
- ORRSTOWN FINANCIAL SERVICES, INC. (company) — Registrant
- Pennsylvania (location) — State of incorporation
- August 5, 2024 (date) — Date of earliest event reported
- 4750 Lindle Road, Harrisburg, Pennsylvania (location) — Address of Principal Executive Offices
FAQ
What specific assets or operations are being disposed of by Orrstown Financial Services?
The filing does not specify the exact assets or operations being disposed of, only that it pertains to 'Cost Associated with Exit or Disposal Activities'.
What is the financial impact of these disposal activities on Orrstown Financial Services?
The filing indicates costs associated with disposal activities but does not quantify the total financial impact or any resulting gains/losses.
When did these disposal activities commence or become effective?
The report is dated August 5, 2024, and the 'Date as of Change' is also August 5, 2024, suggesting these activities are current or have recently been formalized.
Are there any material agreements or contracts related to this disposal?
The filing mentions 'Financial Statements and Exhibits' and 'Cost Associated with Exit or Disposal Activities' but does not detail specific agreements.
What is the strategic rationale behind Orrstown Financial Services' disposal activities?
The filing does not provide the strategic rationale; it only reports the occurrence of costs related to exit or disposal.
Filing Stats: 1,436 words · 6 min read · ~5 pages · Grade level 18 · Accepted 2024-08-05 16:20:45
Key Financial Figures
- $534 thousand — ne-time pre-tax charge of approximately $534 thousand. Once completed, the Branch Closures ar
- $1.7 million — are expected to generate approximately $1.7 million of pre-tax annual expense savings. Fiv
- $123 million — ll service branches (with an average of $123 million in deposits) and 7 limited service bran
Filing Documents
- orrf-20240805.htm (8-K) — 36KB
- 0000826154-24-000188.txt ( ) — 163KB
- orrf-20240805.xsd (EX-101.SCH) — 2KB
- orrf-20240805_lab.xml (EX-101.LAB) — 22KB
- orrf-20240805_pre.xml (EX-101.PRE) — 13KB
- orrf-20240805_htm.xml (XML) — 3KB
05 Costs Associated with Exit or Disposal Activities
Item 2.05 Costs Associated with Exit or Disposal Activities Orrstown Financial Services, Inc. (the "Company"), the holding company for Orrstown Bank (the "Bank"), intends to close six branch locations (the "Branch Closures"). The Branch Closures will result in a one-time pre-tax charge of approximately $534 thousand. Once completed, the Branch Closures are expected to generate approximately $1.7 million of pre-tax annual expense savings. Five of the Branch Closures are subject to regulatory approval and are expected to be completed in the fourth quarter of 2024. One of the Branch Closures qualifies as a branch consolidation and will be completed in the third quarter of 2024. These changes are designed to align the Bank's resources with the evolving needs of its local clients and the broader banking landscape. While the Orrstown Bank and PeoplesBank branch network is highly complementary, there are some instances where branches currently serve the same local area. Clients will continue to have access to online and mobile banking, telephone banking, ATMs and neighboring branch locations. The branches expected to be closed are located in Lancaster, PA (Oregon Pike), Camp Hill, PA (PeoplesBank Camp Hill branch), Mechanicsburg, PA (Bethany Village), Spring Grove, PA (Jefferson), Lancaster, PA (Centerville) and Parkton, MD (Hereford). After the Branch Closures are complete, based on deposits as of June 30, 2024, the Bank will have 38 full service branches (with an average of $123 million in deposits) and 7 limited service branches. Cautionary Note Regarding Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements reflect the current views of the Company's management with respect to, among other things, future events and the Company's financial performance. These statements are often, but not always, made through the use o
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits (d) Exhibits The following exhibit is furnished as part of this Current Report on Form 8-K: Exhibit No. Description 104 Cover Page Interactive Data File (embedded within the inline XBRL document)
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized. ORRSTOWN FINANCIAL SERVICES, INC. Date: August 5, 2024 By: /s/ Neelesh Kalani Neelesh Kalani Executive Vice President and Chief Financial Officer (Duly Authorized Representative)