Orrstown Financial Services, Inc. · NASDAQ:ORRF
Orrstown Financial Services — Shareholder Meeting (May 2025)
30 slides from Orrstown Financial Services's shareholder meeting presentation, May 6, 2025
Slide 1: Annual Shareholders Meeting May 6, 2025
ORRSTOWN Financial Services, Inc. Annual Shareholders Meeting May 6, 2025
Slide 2: Conduct Meeting Business
Conduct Meeting Business Joel R. Zullinger Chairman of the Board ORRSTOWN FINANCIAL SERVICES, INC. 2
Slide 3: Cautionary Note Regarding Forward Looking Statements | Non-GAAP Disclosures
Cautionary Note Regarding Forward Looking Statements | Non-GAAP Disclosures This presentation 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 manag
Slide 4: Rules of Conduct
Rules of Conduct In the interest of an orderly Meeting of the Shareholders of Orrstown Financial Services, Inc., we ask you to honor the following rules of procedure: v Shareholders who are attending via webcast can submit questions during the meeting and those questions will be addressed prior to a
Slide 5: Board of Directors
Board of Direct av John W. Giambalvo, Esq.
Slide 6: Conduct Meeting Business
Conduct Meeting Business Joel R. Zullinger Chairman of the Board ORRSTOWN FINANCIAL SERVICES, INC. 6
Slide 7: Management Report
Management Report Thomas R. Quinn, Jr. President & CEO ORRSTOWN FINANCIAL SERVICES, INC. 7
Slide 8: Right People, Aligned for Success
Right People, Aligned for Success Banking Joined Name Title Experience | ORRF Significant Experience Thomas R. Quinn, Jr. President & CEO 34 years 2009 5 7 - + Average 26 years of banking experience, from a diverse ‘Ager Let SEVP/Chief Operating Officer 2B years 2016 mix of money center and large re
Slide 9: Corporate Overview
Corporate Overview Financial Highlights + S54B $3.9B S4.6B 3.92% Assets Loans Deposits NIM 1.30% 14.29% 62.5% 19.4% ROAA ROAE Efficiency Fee Income / Ratio Op. Revenue Franchise Overview Founded in 1919 Established track record of profitable growth 45 full and limited servicing branches No. of Emplo
Slide 10: Relationship Banking Model
Pee | Relationship Banking Model Lancaster / Berks Growth Market v Four geographic regions: * Central PA Region * Eastern PA Region * York / Adams PA Region + Maryland Region v Markets connected by significant Growth Market - highway infrastructure v Focus on commercial lending and deposit relations
Slide 11: Track Record of Profitable Growth and Successful Acquisitions
Track Record of Profitable wth and Successful Acquisitions 2018 2019 2020 2021 2022 2023 2024 HE 1221 Assets* 2018 2019 2024 Acquired Hamilton Merged with Codorus Community Bank of mancdrh Valley Bancorp, Inc. Mercersburg S; 2S Hamilton SS ay Bancorp, Inc. iPad FIRST COMMUNITY BANK! Assets: $525MM ‘
Slide 12: 2024 Year in Review
2024 Year in Review Net Income, adjusted to exclude merger related expenses and non- recurring charges was $56.1 million / Diluted EPS of $3.76 Closed and merged with Codorus Valley Bancorp, Inc. Increased Assets by $2.4 billion Increased net interest margin despite rising interest rates and retenti
Slide 13: Dividend Trend
Dividend Trend Dividend By Quarter Dividend By Year go2s Wee 229% = 16% E $0.18 INCREASI CAGR 0.80 $0.74 $0.76 © $0.68 $0.60 $0.51 $0.42 $0.35 $0.22 [| 1:23:45 67 8 9 1041 1215 1615 16 1718 1920 2122 2526 2526 27 2629 3031 3233-3435 36 37 38.39 LC] $905 $0.07 2015 2016 2017-«2018«—«2019-«2020«2021«2
Slide 14: Financial Report
Financial Report Neil Kalani Chief Financial Officer ORRSTOWN FINANCIAL SERVICES, INC.
Slide 15: 2024 Financial Highlights
2024 Financial Highlights > Adjusted Net Income $56.1 million / Diluted EPS of $3.76 * Inclusive of merger related expenses, Net Income was $22.1 million or $1.48 diluted EPS > Net Interest Income Increased by $50.3 million, or 48.0% * Net interest margin expanded by 12 basis point to 3.92% in 2024
Slide 16: 2024 Financial Highlights
2024 Financial Highlights > Loan Growth - $1.6 billion, or 71% * Acquired balances from PeoplesBank totaled $1.6 billion * Commercial loan growth — $1.3 billion or 72% * Consumer loan growth - $320 million or 69% > Deposit Growth - $2.1 billion or 81% * Acquired balances from PeoplesBank totaled $1.
Slide 17: Enhanced Profitability Levels
Enhanced Profitability Levels Earnings Growth * Return on Average Assets & Equity ? $3.76 $3.51 14.25% 15.06% 14.29% $3.25 11.66% 12.54% ———— $2.96 $56.4 —— 5 5 * re 1.30% ° 1.22% 1.22% 1.14% $2.40 aos $36.6 $32.9 $34.8 2020 2021 2022 2023 2024 $26.5 —e-ROAE —e-ROAA Net Interest Income and Net Inter
Slide 18: Loans ($ in millions)
Loans ($ in millions) 4Q24 Loan Composition + $3,931 2020 2021 2022 2023 2024 PPP Loans Consumer Loans 29% Commercial Loans CAGR Commercial Loans 19% Total Gross Loans CAGR i data asof December 31, 2024. Loans represents three months ending December 31, 2024 Non-owner occupied CRE Owner 30% occupied
Slide 19: Core Deposits
ow Core Deposits Deposits ($ in millions) 4Q24 Deposit Composition + $4,623 $2,357 $2,465 $2,476 $2,559 Ee 2020 2021 2022 2023 2024 mCore Deposits m Time Deposits 18% 17% Total Deposit Total Core CAGR Deposit CAGR 1 Financial data as of December 31, 2024. 2~Cost of Deposits represents three months e
Slide 20: Assets Under Management and Non-Interest Income
$3.2 billion in assets under management as of December 31, 2024 Opportunity to gain market share in growth markets v Wealth Management Y Mortgage Banking Focus on value added fee income Continue to seek swap fee opportunities 19% 2024 Fee Income / Operating Revenue Non-Interest Income ($ in millions
Slide 21: Operational Efficiency
Operational Efficien ici iol We are focused on implementing processing Efficiency Ratio efficiencies and optimizing results: * Efficiency ratio declined from 66.2% for the year ended December 31, 2020 to 62.5% for 66.2% ae al 62.9% 63.4% 62.5% the quarter ended December 31, 2024 * Technology enhance
Slide 22: Summary Financial Overview
Summary Financial Overview ae 42/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 en |Assets $2,751 ‘$2,835, ($2,922 ‘$3,064 ‘$5,442 78% |Total Gross Loans* 1,991 1,989 2,162 2,304 3,938 71% 15% C&l Loans* 843 739 686 751 1,240 65% 8% CRE Loans 699 857 1,035 1,080 1.903 76% 22% Total Commercial L
Slide 23: Areas of Focus in 2025
Areas of Focus in 2025 Adam L. Metz Chief Operating Officer ORRSTOWN FINANCIAL SERVICES, INC.
Slide 24: 2025 Strategic Focus
2025 Strategic Focus Recruit talent throughout our footprint to drive and facilitate growth Maximize automation and implement operational efficiencies Return focus to loan and deposit growth Deploy excess liquidity to drive prudent growth and enhance net interest income Evaluate expansion and acquis
Slide 25: Conduct Meeting Business
Conduct Meeting Business Joel R. Zullinger Chairman of the Board ORRSTOWN FINANCIAL SERVICES, INC.
Slide 26: 2025 Annual Shareholder Meeting
2025 Annual Shareholder Meeting Thank You for Being a Loyal Shareholder ORRSTOWN FINANCIAL SERVICES, INC.
Slide 27: Appendix: Reconciliation of Non-GAAP Measures to GAAP Results
Appendix Reconciliation of Non-GAAP Measures to GAAP Results As a result of acquisitions, the Company has intangible assets consisting of goodwill and core deposit and other intangible assets. Management believes providing certain “non-GAAP” financial information will assist investors in their under
Slide 28: Non-GAAP Financial Measure Reconciliation
Non-GAAP Financial Measure Reconciliation Net Income / Diluted EPS / Ratios (Presented In Millions except for Diluted EPS) Average Assets S 26458 S 28948 S$ 2898 § 29995 S$ 4.3215 ‘Average Equity 226.9 2622 244.3 243.3 392.3 Net Income (GAAP) $ 26.5 $ 329 $ 20 $ 351 $ DA Less Security Gains s - Ss -
Slide 29: Non-GAAP Financial Measure Reconciliation
Non-GAAP Financial Measure Reconciliation ncy Ratio (Non-GAAP) 2020 2021 2022 2024 (Presented In Millions) Net Interest Income s 836 S 87.0 S 99.6 S 104.9 § 155.3 Plus Non-Interest Income 28.3 29.2 27.0 25.7 37.5 Total Revenue (A) $ m9 $ 116.1_$ 126.6_S 730.6_S 192.7 Non-interest Expense s 4.4 4.4 9
Slide 30: Non-GAAP Financial Measure Reconciliation
Non-GAAP Financial Measure Reconciliation Tangible Book Value (Non-GAAP) (Presented in Millions except for Tangible Book Value Per Share) Total Shareholders’ Equity (GAAP) s 246.2 $ 2nT § 228.9 S$ 265.1 S 516.7 Less Goodwill (18.7) (18.7) (18.7) (18.7) 68.1) Less Intangible Assets (65) (42) G1) (24)
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