Orrstown Financial Services, Inc. (the “Company”) (NASDAQ:ORRF),
the parent company of Orrstown Bank (the “Bank”) and Wheatland
Advisors, Inc. ("Wheatland"), announced earnings for the three
months ended March 31, 2017. Net income was $2.0 million
for the three months ended March 31, 2017, compared with $2.6
million for the same period in 2016. Diluted earnings per share
totaled $0.24 and $0.32 for the three months ended March 31,
2017 and 2016. Earnings in the first quarter of 2017 reflected
increased interest income from expanding loan and investment
portfolios as the Company pursued its growth strategy and continued
to take advantage of market disruption. Results for the first
quarter of 2016 were significantly influenced by investment
securities gains of $1.4 million compared with minimal gains in the
first quarter of 2017. Noninterest income, excluding securities
gains, was consistent between 2017 and 2016. Noninterest expenses
totaled $12.1 million, up from $11.1 million in the 2016 quarter,
with overall increases attributable to salaries and benefits
associated with the Company's growth.
Thomas R. Quinn, Jr., President and Chief
Executive Officer, commented, “The momentum which began in the
second half of 2016 has continued and is growing in the first
quarter of 2017. Our growth in loans, combined with effective
balance sheet management, has moved our net interest margin
substantially from 2016, ultimately resulting in over 18% net
interest income growth. Our growth in loans, deposits and net
interest margin are the result of great efforts by our staff in the
Company’s core markets, and our 2016 investments we made in new
markets."
OPERATING RESULTS
Net Interest Income
Net interest income totaled $10.2 million for
the three months ended March 31, 2017, an 18.3% increase over
$8.7 million for the same period in 2016. Net interest margin
on a fully taxable-equivalent basis was 3.35% for the three months
ended March 31, 2017, compared to 3.06% for the same period in
2016. For the first quarter of 2017, the net interest margin of
3.35% expanded 15 basis points over the fourth quarter of 2016, and
was 29 basis points higher than the first quarter of 2016.
Increased yields in loans and investments
reflected a higher interest rate environment as well as purchases
of additional tax-exempt securities in late 2016 and 2017 with
yields higher than the portfolio average. The cost of
interest-bearing liabilities increased at a slower pace than the
yields earned on interest-earning assets from 2016 to 2017, as the
market has been slow to respond to interest rate changes.
Provision for Loan Losses
The Company recorded no provision for loan
losses during the three months ended March 31, 2017 or
2016. In calculating the required provision for loan losses,
both quantitative and qualitative factors are considered in the
determination of the adequacy of the allowance for loan losses.
Favorable historical charge-off data combined with stable economic
and market conditions resulted in the determination that no
provision for loan losses was required to offset net charge-offs or
for loan growth experienced during the first quarter of 2017.
Despite improvement in many of the asset quality
metrics since March 2016, the growth the Company has experienced in
its loan portfolio is one factor that may result in the need for
additional provisions for loan losses in future quarters.
Noninterest Income
Noninterest income, excluding securities gains,
for the three months ended March 31, 2017 totaled $4.3
million, compared with $4.2 million in the prior year period.
Trust, investment management and brokerage income increased $128
thousand, which is largely attributable to activity from Wheatland
Advisors, Inc., which was acquired in December 2016. Mortgage
banking activities income decreased $139 thousand due to decreased
refinance activity as interest rates have increased.
Investment securities gains were not significant
in the three months ended March 31, 2017, compared with $1.4
million for the same period in 2016. As market conditions
present opportunities to act on asset/liability management
strategies or interest rate market conditions, the Company may sell
investment securities.
Noninterest Expenses
Noninterest expenses totaled $12.1 million and
$11.1 million for the three months ended March 31, 2017 and
2016. The principal drivers of the increase were salaries and
employee benefits, which increased $1.2 million, and occupancy,
furniture and equipment which increased $181 thousand. These
increases reflect previously disclosed market expansion actions by
the Company as it has added new, primarily customer-facing,
employees and facilities, principally in Berks, Cumberland, Dauphin
and Lancaster counties.
Other line items within noninterest expenses
showed modest fluctuations between 2017 and 2016.
Income Taxes
Income tax expense totaled $424 thousand for the
three months ended March 31, 2017, compared to $614 thousand
for the same period in 2016. The Company’s effective tax rate is
significantly less than the 34.0% federal statutory rate
principally due to tax-exempt income, including interest earned on
tax-exempt loans and securities and earnings on the cash value of
life insurance policies. The effective tax rate for the three
months ended March 31, 2017 was 17.5%, compared with 19.2% for
the three months ended March 31, 2016. The lower effective tax
rate for the first quarter of 2017 compared with 2016 is primarily
the result of a larger percentage of tax-exempt income to total
income and additional tax credits.
FINANCIAL CONDITION
Assets totaled $1.45 billion at March 31,
2017, an increase of $39.4 million from $1.41 billion at
December 31, 2016 and of $166.7 million from $1.29 billion at
March 31, 2016. The principal growth components were securities
available for sale, which increased $23.4 million from December 31,
2016 to March 31, 2017 and $96.0 million year-over-year, and loans
which are summarized below. Deposit growth of $31.4 million
in the first quarter of 2017 was the primary source of funding for
growth in securities and loans in the quarter. Deposit growth of
$135.5 million, coupled with an overall reduction in cash balances
of $38.4 million, was the primary source of funding for
year-over-year growth in securities and loans.
Gross loans, excluding those held for sale,
totaled $901.3 million at March 31, 2017, and increased $17.9
million, or 2.0% (8.2% annualized), from $883.4 million at
December 31, 2016, In comparison to March 31, 2016’s
loan balance of $804.7 million, loans increased $96.6 million, or
12.0%.
The following table presents loan balances, by
loan class within segments, at March 31, 2017,
December 31, 2016 and March 31, 2016.
(Dollars in
thousands) |
March 31, 2017 |
|
December 31, 2016 |
|
March 31, 2016 |
|
|
|
|
|
|
Commercial real
estate: |
|
|
|
|
|
Owner
occupied |
$ |
114,991 |
|
|
$ |
112,295 |
|
|
$ |
106,464 |
|
Non-owner
occupied |
209,601 |
|
|
206,358 |
|
|
154,731 |
|
Multi-family |
47,893 |
|
|
47,681 |
|
|
37,664 |
|
Non-owner
occupied residential |
64,809 |
|
|
62,533 |
|
|
54,834 |
|
Acquisition and
development: |
|
|
|
|
|
1-4
family residential construction |
5,790 |
|
|
4,663 |
|
|
7,270 |
|
Commercial and land development |
27,648 |
|
|
26,085 |
|
|
42,245 |
|
Commercial and
industrial |
90,638 |
|
|
88,465 |
|
|
77,277 |
|
Municipal |
53,225 |
|
|
53,741 |
|
|
62,302 |
|
Residential
mortgage: |
|
|
|
|
|
First
lien |
143,282 |
|
|
139,851 |
|
|
125,706 |
|
Home
equity – term |
13,605 |
|
|
14,248 |
|
|
16,578 |
|
Home
equity – lines of credit |
122,473 |
|
|
120,353 |
|
|
111,770 |
|
Installment and other
loans |
7,376 |
|
|
7,118 |
|
|
7,862 |
|
|
$ |
901,331 |
|
|
$ |
883,391 |
|
|
$ |
804,703 |
|
Growth was experienced in nearly all loan
segments from December 31, 2016 to March 31, 2017, with
the largest increase in the commercial real estate segment, which
grew by $8.4 million, which was approximately half of the portfolio
growth for the period, or 8.0% annualized. The Company continues to
grow in both core markets and new markets through expansion in the
sales force and capitalizing on continued market disruption.
Total deposits grew 2.7% (11.1% annualized) from
$1.15 billion at December 31, 2016 to $1.18 billion at March 31,
2017, and increased 12.9% in comparison with $1.05 billion at March
31, 2016, due principally to growth in interest-bearing accounts.
The Company has continued to increase both noninterest-bearing and
interest-bearing deposit relationships from enhanced cash
management offerings delivered by its expanded sales force.
Shareholders’ Equity
Shareholders’ equity totaled $137.5 million at
March 31, 2017, an increase of $2.6 million, or 1.9%, from
$134.9 million at December 31, 2016. This increase was
principally the result of net income totaling $2.0 million for the
three months ended March 31, 2017 coupled with a $1.1 million
increase in accumulated other comprehensive income (loss), net of
tax, and offset by dividends declared on common stock during the
quarter.
Asset Quality
Asset quality metrics remained relatively stable
in comparing March 31, 2017 with December 31, 2016 and have
improved since March 31, 2016.
The allowance for loan losses balance totaled
$12.7 million at March 31, 2017, compared with the $12.8
million at December 31, 2016 and the $13.3 million balance at
March 31, 2016. Management believes the allowance for loan
losses to total loans ratio remains adequate at 1.41% as of
March 31, 2017. Favorable historical charge-off data and
management's emphasis on loan quality have been significant
contributors to the determination that a relatively stable
allowance for loan losses balance is adequate as the loan portfolio
has been increasing.
The allowance for loan losses to nonperforming
loans totaled 198.6% at March 31, 2017 compared with 181.4% at
December 31, 2016, and 83.9% at March 31, 2016, reflecting a
substantial decrease in nonaccrual loans from a year ago. The
allowance for loan losses to nonperforming and restructured loans
still accruing totaled 173.5% at March 31, 2017, compared to
160.2% at December 31, 2016 and 78.7% at March 31,
2016.
Nonperforming and other risk assets, defined as
nonaccrual loans, restructured loans still accruing, loans past due
90 days or more and still accruing, and other real estate owned
totaled decreased 52.3% from March 31, 2016 to March 31, 2017. The
balance at March 31, 2017 and December 31, 2017 was a similar $8.3
million compared with $17.4 million at March 31, 2016, as
nonaccrual loans decreased $9.5 million from March 31, 2016 to
March 31, 2017.
Classified loans, defined as loans rated
substandard, doubtful or loss, totaled $22.0 million at
March 31, 2017, or approximately 2.4% of total loans, compared
with $22.9 million (2.6%) at December 31, 2016 and $24.4
million (3.0%) at March 31, 2016.
ORRSTOWN
FINANCIAL SERVICES, INC. |
|
|
|
|
Operating
Highlights (Unaudited) |
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
March 31, |
(Dollars in thousands,
except per share data) |
|
2017 |
|
2016 |
|
|
|
|
|
Net income |
|
$ |
2,002 |
|
|
$ |
2,580 |
|
Diluted earnings per
share |
|
$ |
0.24 |
|
|
$ |
0.32 |
|
Dividends per
share |
|
$ |
0.10 |
|
|
$ |
0.08 |
|
Return on average
assets |
|
0.57 |
% |
|
0.80 |
% |
Return on average
equity |
|
6.01 |
% |
|
7.64 |
% |
Net interest
income |
|
$ |
10,237 |
|
|
$ |
8,650 |
|
Net interest
margin |
|
3.35 |
% |
|
3.06 |
% |
ORRSTOWN
FINANCIAL SERVICES, INC. |
|
|
|
|
|
Balance Sheet
Highlights (Unaudited) |
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands,
except per share data) |
2017 |
|
2016 |
|
2016 |
|
|
|
|
|
|
Assets |
$ |
1,453,946 |
|
|
$ |
1,414,504 |
|
|
$ |
1,287,279 |
|
Loans, gross |
901,331 |
|
|
883,391 |
|
|
804,703 |
|
Allowance for loan
losses |
(12,668 |
) |
|
(12,775 |
) |
|
(13,347 |
) |
Deposits |
1,183,876 |
|
|
1,152,452 |
|
|
1,048,376 |
|
Shareholders'
equity |
137,469 |
|
|
134,859 |
|
|
138,247 |
|
Book value per
share |
16.50 |
|
|
16.28 |
|
|
16.68 |
|
ORRSTOWN FINANCIAL SERVICES, INC. |
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in
thousands) |
2017 |
|
2016 |
|
2016 |
Assets |
|
|
|
|
|
Cash and
cash equivalents |
$ |
28,551 |
|
|
$ |
30,273 |
|
|
$ |
66,915 |
|
Securities
available for sale |
423,601 |
|
|
400,154 |
|
|
327,590 |
|
|
|
|
|
|
|
|
|
Loans held
for sale |
3,349 |
|
|
2,768 |
|
|
3,499 |
|
|
|
|
|
|
|
Loans |
901,331 |
|
|
883,391 |
|
|
804,703 |
|
Less:
Allowance for loan losses |
(12,668 |
) |
|
(12,775 |
) |
|
(13,347 |
) |
|
Net
loans |
888,663 |
|
|
870,616 |
|
|
791,356 |
|
|
|
|
|
|
|
|
|
Premises
and equipment, net |
34,767 |
|
|
34,871 |
|
|
29,689 |
|
Other
assets |
75,015 |
|
|
75,822 |
|
|
68,230 |
|
|
|
Total assets |
$ |
1,453,946 |
|
|
$ |
1,414,504 |
|
|
$ |
1,287,279 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Noninterest-bearing |
$ |
157,983 |
|
|
$ |
150,747 |
|
|
$ |
146,094 |
|
|
Interest-bearing |
1,025,893 |
|
|
1,001,705 |
|
|
902,282 |
|
|
|
Total deposits |
1,183,876 |
|
|
1,152,452 |
|
|
1,048,376 |
|
Borrowings |
117,491 |
|
|
112,027 |
|
|
87,106 |
|
Accrued
interest and other liabilities |
15,110 |
|
|
15,166 |
|
|
13,550 |
|
|
|
Total liabilities |
1,316,477 |
|
|
1,279,645 |
|
|
1,149,032 |
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
Common
stock |
434 |
|
|
437 |
|
|
437 |
|
Additional
paid - in capital |
124,365 |
|
|
124,935 |
|
|
124,548 |
|
Retained
earnings |
12,848 |
|
|
11,669 |
|
|
9,855 |
|
Accumulated
other comprehensive income (loss) |
(98 |
) |
|
(1,165 |
) |
|
4,434 |
|
Treasury
stock |
(80 |
) |
|
(1,017 |
) |
|
(1,027 |
) |
|
|
Total shareholders'
equity |
137,469 |
|
|
134,859 |
|
|
138,247 |
|
|
|
Total liabilities and
shareholders' equity |
$ |
1,453,946 |
|
|
$ |
1,414,504 |
|
|
$ |
1,287,279 |
|
ORRSTOWN FINANCIAL SERVICES, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
March 31, |
(Dollars in
thousands, except share data) |
|
2017 |
|
2016 |
Interest and dividend income |
|
|
|
|
Interest
and fees on loans |
|
$ |
9,204 |
|
|
$ |
7,991 |
|
Interest
and dividends on investment securities |
|
2,626 |
|
|
1,970 |
|
|
Total interest and
dividend income |
|
11,830 |
|
|
9,961 |
|
Interest expense |
|
|
|
|
Interest on
deposits |
|
1,326 |
|
|
1,139 |
|
Interest on
borrowings |
|
267 |
|
|
172 |
|
|
Total interest
expense |
|
1,593 |
|
|
1,311 |
|
Net
interest income |
|
10,237 |
|
|
8,650 |
|
Provision
for loan losses |
|
0 |
|
|
0 |
|
|
Net interest income
after provision for loan losses |
|
10,237 |
|
|
8,650 |
|
|
|
|
|
|
|
Noninterest income |
|
|
|
|
Service
charges on deposit accounts |
|
1,358 |
|
|
1,303 |
|
Trust,
investment management and brokerage income |
|
1,913 |
|
|
1,785 |
|
Mortgage
banking activities |
|
503 |
|
|
642 |
|
Other
income |
|
558 |
|
|
515 |
|
Investment
securities gains |
|
3 |
|
|
1,420 |
|
|
Total noninterest
income |
|
4,335 |
|
|
5,665 |
|
|
|
|
|
|
|
Noninterest expenses |
|
|
|
|
Salaries
and employee benefits |
|
7,400 |
|
|
6,183 |
|
Occupancy,
furniture and equipment |
|
1,493 |
|
|
1,312 |
|
Data
processing |
|
511 |
|
|
635 |
|
Advertising
and bank promotions |
|
387 |
|
|
456 |
|
FDIC
insurance |
|
137 |
|
|
232 |
|
Professional services |
|
508 |
|
|
520 |
|
Collection
and problem loan |
|
75 |
|
|
52 |
|
Real estate
owned |
|
20 |
|
|
43 |
|
Taxes other
than income |
|
228 |
|
|
155 |
|
Other
operating expenses |
|
1,387 |
|
|
1,533 |
|
|
Total noninterest
expenses |
|
12,146 |
|
|
11,121 |
|
|
Income before income
tax |
|
2,426 |
|
|
3,194 |
|
Income tax
expense |
|
424 |
|
|
614 |
|
Net
income |
|
$ |
2,002 |
|
|
$ |
2,580 |
|
|
|
|
|
|
|
Per
share information: |
|
|
|
|
|
Basic earnings per
share |
|
$ |
0.25 |
|
|
$ |
0.32 |
|
|
Diluted earnings per
share |
|
0.24 |
|
|
0.32 |
|
|
Dividends per
share |
|
0.10 |
|
|
0.08 |
|
|
Diluted
weighted-average shares of common stock outstanding |
|
8,198,127 |
|
|
8,139,070 |
|
ORRSTOWN
FINANCIAL SERVICES, INC. |
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF NET
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
Average Balances and Interest Rates, Taxable-Equivalent
Basis (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, 2017 |
|
March 31, 2016 |
|
|
|
Taxable- |
|
Taxable- |
|
|
|
Taxable- |
|
Taxable- |
|
Average |
|
Equivalent |
|
Equivalent |
|
Average |
|
Equivalent |
|
Equivalent |
(Dollars in
thousands) |
Balance |
|
Interest |
|
Rate |
|
Balance |
|
Interest |
|
Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold
& interest-bearing bank balances |
$ |
5,545 |
|
|
$ |
18 |
|
|
1.32 |
% |
|
$ |
43,242 |
|
|
$ |
65 |
|
|
0.60 |
% |
Securities |
415,342 |
|
|
3,010 |
|
|
2.94 |
|
|
363,614 |
|
|
2,142 |
|
|
2.37 |
|
Loans |
895,331 |
|
|
9,423 |
|
|
4.27 |
|
|
795,785 |
|
|
8,261 |
|
|
4.18 |
|
Total interest-earning
assets |
1,316,218 |
|
|
12,451 |
|
|
3.84 |
|
|
1,202,641 |
|
|
10,468 |
|
|
3.50 |
|
Other assets |
107,587 |
|
|
|
|
|
|
94,292 |
|
|
|
|
|
Total |
$ |
1,423,805 |
|
|
|
|
|
|
$ |
1,296,933 |
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits |
$ |
609,052 |
|
|
$ |
365 |
|
|
0.24 |
|
|
$ |
521,442 |
|
|
$ |
252 |
|
|
0.19 |
|
Savings deposits |
93,312 |
|
|
36 |
|
|
0.16 |
|
|
87,702 |
|
|
35 |
|
|
0.16 |
|
Time deposits |
296,725 |
|
|
925 |
|
|
1.26 |
|
|
304,800 |
|
|
852 |
|
|
1.12 |
|
Short-term
borrowings |
104,651 |
|
|
172 |
|
|
0.67 |
|
|
76,342 |
|
|
66 |
|
|
0.35 |
|
Long-term debt |
21,460 |
|
|
95 |
|
|
1.80 |
|
|
24,459 |
|
|
106 |
|
|
1.74 |
|
Total interest-bearing
liabilities |
1,125,200 |
|
|
1,593 |
|
|
0.57 |
|
|
1,014,745 |
|
|
1,311 |
|
|
0.52 |
|
Noninterest-bearing
demand deposits |
148,502 |
|
|
|
|
|
|
133,214 |
|
|
|
|
|
Other |
14,588 |
|
|
|
|
|
|
13,206 |
|
|
|
|
|
Total Liabilities |
1,288,290 |
|
|
|
|
|
|
1,161,165 |
|
|
|
|
|
Shareholders'
Equity |
135,515 |
|
|
|
|
|
|
135,768 |
|
|
|
|
|
Total |
$ |
1,423,805 |
|
|
|
|
|
|
$ |
1,296,933 |
|
|
|
|
|
Taxable-equivalent net
interest income / net interest spread |
|
|
10,858 |
|
|
3.27 |
% |
|
|
|
9,157 |
|
|
2.98 |
% |
Taxable-equivalent net
interest margin |
|
|
|
|
3.35 |
% |
|
|
|
|
|
3.06 |
% |
Taxable-equivalent
adjustment |
|
|
(621 |
) |
|
|
|
|
|
(507 |
) |
|
|
Net interest
income |
|
|
$ |
10,237 |
|
|
|
|
|
|
$ |
8,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES: |
|
|
|
|
|
|
|
|
|
|
|
(1) Yields
and interest income on tax-exempt assets have been computed on a
taxable-equivalent basis assuming a 34% tax rate. |
(2) For
yield calculation purposes, nonaccruing loans are included in the
average loan balance. |
ORRSTOWN
FINANCIAL SERVICES, INC. |
|
|
|
|
|
Nonperforming
Assets / Risk Elements (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in
thousands) |
2017 |
|
2016 |
|
2016 |
|
|
|
|
|
|
Nonaccrual loans (cash
basis) |
$ |
6,379 |
|
|
$ |
7,042 |
|
|
$ |
15,906 |
|
Other real estate
(OREO) |
1,019 |
|
|
346 |
|
|
495 |
|
Total nonperforming
assets |
7,398 |
|
|
7,388 |
|
|
16,401 |
|
Restructured loans
still accruing |
921 |
|
|
930 |
|
|
1,044 |
|
Loans past due 90 days
or more and still accruing |
0 |
|
|
0 |
|
|
1 |
|
Total nonperforming and
other risk assets |
$ |
8,319 |
|
|
$ |
8,318 |
|
|
$ |
17,446 |
|
|
|
|
|
|
|
Loans 30-89 days past
due |
$ |
1,315 |
|
|
$ |
1,218 |
|
|
$ |
1,391 |
|
|
|
|
|
|
|
Asset quality
ratios: |
|
|
|
|
|
Total nonperforming
loans to total loans |
0.71 |
% |
|
0.80 |
% |
|
1.98 |
% |
Total nonperforming
assets to total assets |
0.51 |
% |
|
0.52 |
% |
|
1.27 |
% |
Total nonperforming
assets to total loans and OREO |
0.82 |
% |
|
0.84 |
% |
|
2.04 |
% |
Total risk assets to
total loans and OREO |
0.92 |
% |
|
0.94 |
% |
|
2.17 |
% |
Total risk assets to
total assets |
0.57 |
% |
|
0.59 |
% |
|
1.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses to total loans |
1.41 |
% |
|
1.45 |
% |
|
1.66 |
% |
Allowance for loan
losses to nonperforming loans |
198.59 |
% |
|
181.41 |
% |
|
83.91 |
% |
Allowance for loan
losses to nonperforming and restructured loans still accruing |
173.53 |
% |
|
160.25 |
% |
|
78.74 |
% |
ORRSTOWN
FINANCIAL SERVICES, INC. |
|
|
|
Roll Forward of
Allowance for Loan Losses (Unaudited) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
March 31, |
(Dollars in
thousands) |
2017 |
|
2016 |
|
|
|
|
Balance at beginning of
period |
$ |
12,775 |
|
|
$ |
13,568 |
|
Provision
for loan losses |
0 |
|
|
0 |
|
Recoveries |
22 |
|
|
108 |
|
Charge-offs |
(129 |
) |
|
(329 |
) |
Balance at end of
period |
$ |
12,668 |
|
|
$ |
13,347 |
|
About the Company
With over $1.4 billion in assets, Orrstown
Financial Services, Inc. and its wholly-owned subsidiaries,
Orrstown Bank and Wheatland Advisors, Inc., provide a wide range of
consumer and business financial services through 26 banking and
financial advisory offices in Berks, Cumberland, Dauphin, Franklin,
Lancaster and Perry Counties, Pennsylvania and Washington County,
Maryland. Orrstown Bank is an Equal Housing Lender and its
deposits are insured up to the legal maximum by the FDIC.
Orrstown Financial Services, Inc.’s stock is traded on Nasdaq
(ORRF). For more information about Orrstown Financial
Services, Inc. and Orrstown Bank, visit www.orrstown.com. For more
information about Wheatland Advisors, Inc., visit
www.wheatlandadvisors.com.
Cautionary Note Regarding Forward-looking Statements:
This news release may contain forward-looking
statements as defined in the Private Securities Litigation Reform
Act of 1995. Forward-looking statements are statements that
include projections, predictions, expectations, or beliefs about
events or results or otherwise are not statements of historical
facts, including, without limitation, our ability to integrate
additional teams across all business lines as we continue our
expansion into Dauphin, Lancaster and Berks counties and fill a
void created in the community banking space from the disruption
caused by the acquisition of several competitors, and our belief
that we are positioned to create additional long-term shareholder
value from these expansion initiatives.
Actual results and trends could differ
materially from those set forth in such statements and there can be
no assurances that we will be able to continue to successfully
execute on our strategic expansion east into Dauphin, Lancaster and
Berks counties, take advantage of market disruption, and experience
sustained growth in loans and deposits. Factors that could
cause actual results to differ from those expressed or implied by
the forward looking statements include, but are not limited to, the
following: ineffectiveness of the Company's business strategy due
to changes in current or future market conditions; the effects of
competition, including industry consolidation and development of
competing financial products and services; changes in laws and
regulations, including the Dodd-Frank Wall Street Reform and
Consumer Protection Act; interest rate movements; changes in credit
quality; inability to raise capital, if necessary, under favorable
conditions; volatilities in the securities markets;
deteriorating economic conditions; the integration of the Company's
strategic acquisitions; and other risks and uncertainties,
including those detailed in Orrstown Financial Services, Inc.'s
Annual Report on Form 10-K for the year ended December 31, 2016,
under the headings “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” and “Risk Factors”
and in other filings made with the Securities and Exchange
Commission. The statements are valid only as of the date
hereof and Orrstown Financial Services, Inc. disclaims any
obligation to update this information.
The review period for subsequent events extends
up to and includes the filing date of a public company’s financial
statements, when filed with the Securities and Exchange
Commission. Accordingly, the consolidated financial
information presented in this announcement is subject to
change.
Contact:
David P. Boyle
Executive Vice President & CFO
Phone 717.530.2294
77 East King Street | Shippensburg PA
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