Orrstown Financial Services showed strong core earnings and improved loan pipelines despite economic uncertainty and market volatility. While they faced challenges from the recent merger-related costs and a decrease in loan portfolios, they have managed to maintain a stable net interest margin and increase capital ratios.
Company Guidance
During the Orrstown Financial Services Inc. First Quarter 2025 Earnings Conference Call, guidance was provided on several key financial metrics and strategic initiatives. Tom Quinn, the CEO, highlighted core earnings performance, with return on average assets at 1.45% and return on average equity at 14.97% for the quarter ending March 31, 2025. Despite merger-related expenses impacting results, the company expects these costs to normalize by the second quarter, reducing non-interest expenses by approximately $1 million. The net interest margin remained strong at 4%, with a decrease in the cost of deposits by 15 basis points from the previous quarter. The company saw a 1.4% decline in loans due to strategic risk management actions, but anticipates mid-single-digit loan growth moving forward. Adam Metz noted a 40% increase in loan pipelines since year-end, reflecting positive momentum despite economic uncertainties. The company's CRE concentration was at 302% of risk-based capital, below their internal limit of 350%. Capital ratios improved, with the TCE ratio nearing 8%, and the company is considering strategic opportunities such as buybacks and sub-debt redemption to enhance shareholder value.
Strong Core Earnings Performance
Excluding merger and non-recurring charges, the return on average assets was 1.45% and return on average equity was 14.97% for Q1 2025, compared to 1.19% and 13.79% in Q4 2024.
Improved Loan Pipeline
Loan pipelines have increased by over 40% since year-end, indicating positive momentum despite economic challenges.
Stable and Decreasing Funding Costs
Net interest margin remains strong at 4% for Q1 2025. The cost of deposits declined 15 basis points from Q4 2024 to Q1 2025.
Capital Growth
Capital ratios increased across the board quarter-to-quarter, with TCE nearing 8%.
---
Orrstown Financial Services (ORRF) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
---
ORRF Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Apr 22, 2025
$27.61
$28.31
+2.54%
Jan 31, 2025
$36.33
$36.06
-0.74%
Oct 22, 2024
$35.90
$37.04
+3.18%
Jul 23, 2024
$31.52
$33.04
+4.82%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
---
FAQ
When does Orrstown Financial Services Inc (ORRF) report earnings?
Orrstown Financial Services Inc (ORRF) is schdueled to report earning on Jul 29, 2025, TBA Not Confirmed.
What is Orrstown Financial Services Inc (ORRF) earnings time?
Orrstown Financial Services Inc (ORRF) earnings time is at Jul 29, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.