Orrstown Financial Services Inc (ORRF)
NASDAQ:ORRF
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Orrstown Financial Services
(NASDAQ:ORRF)
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Rating:70Outperform
Price Target:
$42.00
▲(7.25% Upside)
Action:UpgradedDate:04/22/26
ORRF’s score is driven most by solid fundamentals (profitability rebound and manageable leverage) tempered by weak cash-flow quality, alongside a favorable low valuation. Technicals are moderately supportive, and the latest earnings call was generally constructive with reaffirmed guidance, though NIM compression and credit/securities marks remain key watch items.
Positive Factors
Revenue & profitability rebound
A meaningful rebound in revenue and net margin signals durable improvement in core banking operations and pricing power. Sustained higher margins support internal capital generation, dividend capacity and reinvestment for growth, improving resilience versus prior-year volatility.
Negative Factors
Weak cash conversion
A sharp decline in free cash flow and deteriorating cash-to-earnings conversion weakens the firm's ability to self-fund dividends, capital needs or absorb credit stress. Persistent cash conversion issues can force reliance on external funding and constrain strategic flexibility over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & profitability rebound
A meaningful rebound in revenue and net margin signals durable improvement in core banking operations and pricing power. Sustained higher margins support internal capital generation, dividend capacity and reinvestment for growth, improving resilience versus prior-year volatility.
Read all positive factors
Orrstown Financial Services (ORRF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$716.71M
Dividend Yield2.93%
Average Volume (3M)199.58K
Price to Earnings (P/E)8.0
Beta (1Y)0.86
Revenue Growth10.74%
EPS Growth121.24%
CountryUS
Employees607
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.12
Shares Outstanding19,619,799
10 Day Avg. Volume140,139
30 Day Avg. Volume199,582
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)1.00
Price to Sales (P/S)1.67
P/FCF Ratio8.36
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue2.63
Enterprise Value/Gross Profit3.72
Enterprise Value/Ebitda7.98
Forecast
1Y Price Target
$42.50Price Target Upside8.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)4.23
Revenue Forecast (FY)$259.45M
Orrstown Financial Services Business Overview & Revenue Model
Company Description
Orrstown Financial Services, Inc. operates as the holding company for Orrstown Bank that provides commercial banking and trust services in the United States. The company accepts various deposits, including checking, savings, time, demand, and mone...
How the Company Makes Money
Orrstown Financial Services primarily makes money through its banking subsidiary by (1) earning net interest income and (2) generating noninterest income from fees and fiduciary-related services.
1) Net interest income (core revenue stream)
- Orr...
Orrstown Financial Services Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive tone: strong profitability (net income, ROAE, ROAA), healthy deposit and loan production, growing fee income, expense reduction and rapidly building capital were emphasized as core strengths. The main challenges were a modest quarter-over-quarter NIM decline (10 bps) driven by temporary funding pressures from extended seasonal deposit runoff, some decline in loan yields, modest net charge-offs (~$0.9M) and increased unrealized losses on securities. Management expects funding costs and margins to improve in Q2 and maintained guidance, suggesting the negatives are viewed as transitory.Positive Updates
Net Income and EPS
Net income of $21.8 million, or $1.12 per diluted share for Q1 2026, representing a profitable start to the year and strong earnings generation.
Negative Updates
Net Interest Margin Compression
Net interest margin (NIM) declined to 3.90% in Q1 from 4.00% in Q4 2025, a 10 basis point decline driven by the December Fed rate cut impact on interest income, reduced purchase accounting accretion and temporarily elevated funding costs.
Read all updates
Q1-2026 Updates
Positive
Negative
Net Income and EPS
Net income of $21.8 million, or $1.12 per diluted share for Q1 2026, representing a profitable start to the year and strong earnings generation.
Read all positive updates
Company Guidance
Management reaffirmed prior NIM guidance of 3.90%–4.00% for 2026, noting Q1 NIM was 3.90% (down from 4.00% in Q4’25) but is expected to stabilize and rise a few basis points as funding costs decline; cost of deposits was 1.96% and overall funding costs should fall further in Q2 after deposit growth of $98.7 million (9% annualized, including $14 million or 7% annualized in noninterest‑bearing deposits) and reduced borrowings. They expect normalized noninterest income to be in line with prior guidance after Q1 fee income of $15.6 million (24.1% of operating income) — including $5.6M wealth management, $1.3M swap fees and $2.4M life insurance proceeds — and see expense control continuing (Q1 noninterest expense $36.7M, down $0.7M) with expenses likely at the lower end of the guidance range absent strategic hires. Capital generation is expected to remain strong (TCE 9.2%, ROAE 14.76%, ROAA 1.59%; unrealized securities losses up $6.8M since 12/31/25), while credit metrics support growth (loans +4% annualized with $211M production, L/D 88%, allowance coverage 1.17%, provision $0.728M, net charge‑offs ≈ $0.9M), and the Board declared a $0.30 quarterly dividend.Orrstown Financial Services Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
71
Positive
Cash Flow
46
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 353.86M | 284.09M | 174.30M | 134.32M | 121.64M |
| Gross Profit | 249.97M | 173.86M | 127.62M | 121.11M | 113.83M |
| EBITDA | 116.68M | 37.50M | 49.37M | 31.24M | 46.20M |
| Net Income | 80.86M | 22.05M | 35.66M | 22.04M | 32.88M |
Balance Sheet | |||||
| Total Assets | 5.54B | 5.44B | 3.06B | 2.92B | 2.83B |
| Cash, Cash Equivalents and Short-Term Investments | 994.82M | 1.08B | 578.68M | 574.55M | 681.15M |
| Total Debt | 336.37M | 209.91M | 179.38M | 155.42M | 57.16M |
| Total Liabilities | 4.95B | 4.92B | 2.80B | 2.69B | 2.56B |
| Stockholders Equity | 591.53M | 516.68M | 265.06M | 228.90M | 271.66M |
Cash Flow | |||||
| Free Cash Flow | 70.50M | 33.38M | 41.41M | 35.30M | 39.56M |
| Operating Cash Flow | 74.73M | 34.96M | 43.70M | 36.19M | 40.81M |
| Investing Cash Flow | -181.96M | 60.99M | -153.25M | -270.99M | -2.01M |
| Financing Cash Flow | 8.13M | 87.76M | 113.89M | 86.91M | 44.65M |
Orrstown Financial Services Technical Analysis
Positive
39.16
Price Trends
36.59
Positive
36.38
Positive
34.85
Positive
Market Momentum
0.81
Negative
69.78
Neutral
75.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORRF, the sentiment is Positive. The current price of 39.16 is above the 20-day moving average (MA) of 36.87, above the 50-day MA of 36.59, and above the 200-day MA of 34.85, indicating a bullish trend. The MACD of 0.81 indicates Negative momentum. The RSI at 69.78 is Neutral, neither overbought nor oversold. The STOCH value of 75.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ORRF.
Orrstown Financial Services Risk Analysis
Orrstown Financial Services disclosed 52 risk factors in its most recent earnings report. Orrstown Financial Services reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Orrstown Financial Services Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $864.88M | ― | 15.32% | 2.18% | 19.90% | 38.87% | |
73 Outperform | $814.35M | ― | 11.66% | 3.66% | 26.91% | 6.01% | |
70 Outperform | $716.71M | 7.97 | 14.62% | 2.93% | 10.74% | 121.24% | |
69 Neutral | $772.26M | 9.48 | 13.02% | 3.19% | 9.58% | 46.74% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $740.56M | 9.92 | 11.29% | 2.48% | -6.80% | 13.03% | |
61 Neutral | $823.29M | 14.40 | 6.63% | 0.67% | 21.77% | 17.22% |
* Financial Sector Average
ORRF
Orrstown Financial Services
36.53
7.53
25.95%
CAC
Camden National
47.97
10.90
29.40%
THFF
First Financial Indiana
64.94
17.32
36.38%
GSBC
Great Southern Bancorp
67.55
14.04
26.25%
FSBC
Five Star
40.46
13.49
50.01%
NBBK
NB Bancorp, Inc.
19.56
2.60
15.33%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.