ORRF · Orrstown Financial Services, Inc.

Orrstown Financial Services, Inc. delivered solid Q1 2026 results with net income rising to $21.8 million or $1.12 diluted EPS from $21.5 million or $1.11 in Q4 2025, driven by higher noninterest income and lower expenses offsetting a dip in net interest income. Noninterest income climbed $1.2 million to $15.6 million, boosted by $2.4 million in life insurance death benefits and higher swap fees, while wealth management held steady at $5.6 million despite market softness. Noninterest expenses fell $0.7 million to $36.7 million, mainly from reduced salaries/benefits and professional services. Net interest income declined to $49.0 million from $50.5 million, with NIM contracting 10 basis points to 3.90% due to lower loan and securities yields amid Fed rate cuts, partially mitigated by a 2 basis point drop in deposit costs and 9 basis point decline in borrowing costs. Balance sheet expansion featured $40.6 million loan growth to $4.1 billion (commercial up $31.5 million, residential $10.1 million) and robust $98.7 million deposit inflow to $4.6 billion, enabling $68.0 million borrowing reduction to $206.7 million and lowering the loan-to-deposit ratio to 88%. Credit quality showed provision expense of $0.7 million versus $0.1 million prior, with net charge-offs at $0.9 million and nonaccrual loans rising to 0.74% of total loans; ACL remained at 1.17%. Capital strengthened with tangible common equity at 9.2% and total risk-based capital at 13.5%. Management highlighted loan quality focus, deposit momentum for funding cost control, and efficiencies, with CEO Quinn noting ROA/ROE exceeding peers and COO Metz emphasizing franchise strength. A $0.30 per share dividend underscores capital return commitment amid healthy liquidity of $1.8 billion.