Orrstown Financial Services, Inc. · NASDAQ:ORRF
Orrstown Financial Services — Investor Presentation (May 2013)
19 slides from Orrstown Financial Services's investor presentation, May 9, 2013
Slide 1: Orrstown Financial Services, Inc. Investor Presentation
Exhibit 99 Orrstown Financial Services, Inc. Investor Presentation May 2013
Slide 2: Forward Looking Information
Forward Looking Information This presentation 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
Slide 3: Orrstown Financial Services, Inc.
Orrstown Financial Services, Inc. $1.2 billion in assets Headquartered in Shippensburg, PA 21 locations in Pennsylvania and Maryland • 9 branches in Cumberland • 7 branches in Franklin • 4 branches in Perry • 1 branch in Washington Customer-focused business model with nearly 100 years of success In
Slide 4: Seasoned Leadership Team
Seasoned Leadership Team Years Experience Previous Experience Thomas R. Quinn, Jr. has served as President, Chief Executive Officer and Director of Orrstown Financial Services, Inc. and of Orrstown Bank since May 2009. Mr. Quinn joined the Bank in March Thomas R. Quinn Jr. 23 Years 2009 as President
Slide 5: Market Area
Market Area Currently operating 21 full-service locations along the Route 81 corridor from Washington County, Maryland through Franklin, Cumberland and Perry Counties, Pennsylvania The combined population of the current market area is approximately 580,000 as of June 30, 2012 The current combined ma
Slide 6: Timeline of Events
Timeline of Events Significant Staffing Hires: 8/14/12 - Jeffrey Seibert, COO 8/29/12 - David Boyle, CFO 9/25/12 – David Keim, CRO 11/5/12 - Robert Coradi , CCO Note: Non-Performing assets defined as nonaccrual loans, restructured loans, loans past due 90 days or more and still accruing, and real es
Slide 7: Future Strategic Initiatives
Future Strategic Initiatives Completing Credit Turnaround • Asset quality remediation, including loan workouts, additional structural enhancements, and multiples sales of non performing assets to third parties have driven an 83% reduction in non performing assets from December 31, 2011 • Asset quali
Slide 8: Summary Financial Highlights
Summary Financial Highlights (Dollars in 000s, except per share data) Year Ended December 31, 2013Q1 Balance Sheet: 2008 2009 2010 2011 2012 Total Assets $1,051,783 $1,196,432 $1,511,722 $1,444,097 $1,232,668 $1,197,038 Total Gross Loans 820,468 881,074 966,986 967,993 711,601 681,928 Total Deposits
Slide 9: Fundamental Operations
Fundamental Operations Net Interest Margin Earnings Summary • Use current market opportunities to expand core funding For the Quarter Ended, • Convert NPAs to earning assets (Dollars in 000s) 12/31/11 3/31/12 6/30/12 9/30/12 12/31/12 3/31/13 • Require pricing discipline amid Net Interest Income (FTE
Slide 10: Diverse and Growing Revenue Stream
Diverse and Growing Revenue Stream 2013Q1 Noninterest Income Composition • Non-interest income continues to be a stable and significant source of revenue • Mortgage banking favorably influenced by continued low interest rate environment and greater stability in the real estate market • Orrstown Fina
Slide 11: Deposit Franchise
Deposit Franchise Deposit Composition (3/31/13) • Significant deposit franchise - with over 83% “core “ • Limited use of wholesale and brokered deposits Cost of Total Deposits (%) • Effectively managing the cost of deposits which declined to 0.46% for the quarter ended March 31, 2013 11
Slide 12: Capital Position
Capital Position 3/31/13 Capital Ratios (%) • Regulatory Capital levels are solidly above “well capitalized” • Simple capital structure – no trust preferred, TARP or holding company debt • Common dividend was suspended in 2011 to preserve capital • Deferred tax valuation allowance of $20.3 million t
Slide 13: Diversified Loan Portfolio
Diversified Loan Portfolio Loans Held for Investment Composition (3/31/13) Non-Performing Loans by Type (3/31/13)(1) 1. NPLs include nonaccrual loans, restructured loans and still accruing, loans past due 90 days or more and still accruing. 13
Slide 14: Completing Credit Turnaround
Completing Credit Turnaround Significant Reduction in NPAs • Asset quality issues were addressed quickly and aggressively in 2012 • “Risk Assets” totaled $19.2 million at March 31, 2013, a 83% reduction from $113.8 million at December 31, 2011 • Risk Assets to assets of 1.61% as of March 31, 2013 is
Slide 15: Transitioning to Offense - Expansion Opportunities
Transitioning to Offense - Expansion Opportunities Shareholder Focus – ROI /Accretion New Markets • Targeting attractive adjacent markets • Expansion market customer base allows for targeted line of business growth Loan Production Offices and Full Service Branches Branch Franchise Acquisitions Whole
Slide 16: Investment Highlights
Investment Highlights Established South Central Pennsylvania bank Deep and experienced Management team with strong operational ability Aggressively dealt with asset quality issues, with ratios that are now in-line with peers as a result of 2012 strategies Strategic plans in place to drive core earni
Slide 17: Appendix
Appendix Fort ORRSTOWN FINANCIAL SERVICES, INC. A Tradition of Excellence
Slide 18: Non-Performing Asset Summary
Non-Performing Asset Summary % Change Q1'13 vs. (dollars in thousands) 12/31/11 3/31/12 6/30/12 9/30/12 12/31/12 3/31/13 Q1'12 Q4'12 Non-Accrual Loans $ 83,697 $ 82,058 $ 56,917 $ 57,780 $ 17,943 $ 14,220 (83%) (21%) OREO 2,165 2,413 2,337 2,575 1,876 1,925 (20%) 3% Non-Performing Assets $ 85,862 $
Slide 19: Asset Quality Trends
Asset Quality Trends NPAs (Incl. TDRs) & 90+PD / Assets (1) Allowance for Loan Losses / Loans Allowance for Loan Losses / NPLs (2) NCOs / Avg. Loans Source SNL Financial, Peers consist of 19 exchange traded institutions headquartered in the Mid-Atlantic with assets between $1.0 and $2.0 billion. 1.
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