Orrstown Financial Services, Inc. · NASDAQ:ORRF
Orrstown Financial Services — Shareholder Meeting (May 2012)
23 slides from Orrstown Financial Services's shareholder meeting presentation, May 1, 2012
Slide 1: Annual Shareholder Meeting
Gort ORRSTOWN FINANCIAL SERVICES, INC. A Tradition of Excellence Annual Shareholder Meeting May 1, 2012
Slide 2: Forward Looking Statement
Forward Looking Statement a Certain statements we may make today may constitute “forward looking statements” under the Private Securities Litigation Reform Act of 1995. Orrstown Financial’s actual results may differ significantly from the results discussed in such forward-looking statements. Factors
Slide 3: Call to Order, Conduct Meeting Business
Gort ORRSTOWN FINANCIAL SERVICES, INC. A Tradition of Excellence Joel Zullinger Chairman of the Board Call to Order Conduct Meeting Business
Slide 4: Rules of Conduct Regarding Questions
Gort ORRSTOWN FINANCIAL SERVICES, INC. A Tradition of Excellence Joel Zullinger Chairman of the Board Rules of Conduct Regarding Questions
Slide 5: Rules of Conduct
Rules of Conduct ee © In the interest of an orderly Meeting of the Shareholders of Orrstown Financial Services, Inc. (the “Company”), we ask you to honor the following rules of procedure: ® Shareholders should not address the Meeting until recognized by the Chairman of the Meeting. Upon recognition
Slide 6: Rules of Conduct
Rules of Conduct a ® Shareholders should confine comments to one subject at a time in order to give other shareholders an opportunity to speak on that subject. Please permit the speaker to conclude his or her remarks without interruption. ® A shareholder will be permitted up to two minutes to addres
Slide 7: Rules of Conduct
Rules of Conduct a ® The views, constructive comments and criticisms of the shareholders are welcome, but the purpose of the Meeting will be observed. The Chairman will stop discussions that are: = Irrelevant to the matter under consideration = Proposals related to the conduct of the Company's ordin
Slide 8: Management Report
Gort ORRSTOWN FINANCIAL SERVICES, INC. A Tradition of Excellence Thomas R. Quinn, Jr. President & Chief Executive Officer Management Report
Slide 9: Recap of 2011: External Conditions
Recap of 2011: External Conditions = Slow recovery from recession O Unemployment remains high at 7.6% O Housing market remains soft* = 2.1% decline in home values in last 12 months in PA = 5.5% decline in home values over last 5 years in PA = 6.31% decline in home values in last 12 months in MD oO C
Slide 10: Recap of 2011: External Conditions
Recap of 2011: External Conditions ee © Regulatory environment evolving O 1,400 financial institutions the target of safety and soundness mandates from 2007 through 201 1* 0 Approximately 1,000 financial institutions currently under formal enforcement actions** O Majority of Dodd-Frank impact is sti
Slide 11: Summary Financial Highlights
Summary Financial Highlights (Dollars in Thousands Except Per Share Data) Year Ended December 31 2007 2008 2009 2010 2011 Total Assets $884,979 $1,051,783 $1,196,432 $1,511,722 $1,444,097 Gross Loans 701,964 820,468 881,074 966,986 967,993 Total Deposits 646,356 757,368 += 915,170 1,188,377 1,216,90
Slide 12: Quarterly Financial Highlights
Quarterly Financial Highlights (Dollars in Thousands, Except Per Share) Quarter Ended March 31 2011, 2012 Total Assets $1,512,393 $1,446,741 Gross Loans 988,774 903,015 Total Deposits 1,207,373 1,213,723 Total Shareholders’ Equity 162,673 119,225 Net Income (loss) 3,827 (8.218) Diluted Earnings (los
Slide 13: Capital Adequacy: History
Capital Adequacy: History Orrstown Financial Services, Inc. 16.0% 14.0% 12.0% 10.0% Ter! Leverage 8.0% Tier} RBC ‘eTotal RBC 6.0% 40% above weil capitalized ozo12 2011 2019 2009 2008 2007 Tiers 2.0% teed 22% 82% 44m 26K 29m 26% Tier RBC 43% 57% 75% 42% 40% 47% TotelRAC 16% 30% 48% 13% 09% 16% 0.0% 2
Slide 14: Contributions from Lines of Business
Contributions from Lines of Business a © Orrstown Financial Advisors Oo OFA was ranked #1 out of 300 FNIC Bank Programs (based on FNIC revenue) oO Nearly $1 billion in total assets under management o Revenues were up 14.5% to $5.79 million and profit was up 48.8% to $1.57 million o Record Year
Slide 15: Contributions from Lines of Business
Contributions from Lines of Business EL © Retail Banking oO Gained more than 800 core deposit accounts in 2011 oO 2012 off to strong start = Core deposit accounts up 23% in Q1, 2012 vs. Q1, 2011 = 245 new core deposit accounts since January 1, 2012 = 49 are new business accounts = Attrition decreasi
Slide 16: Contributions from Lines of Business
Contributions from Lines of Business ee © Mortgage o Added 2 mortgage originators, creating a team of 12 6 2011 production = 634 units totaling $100,788,346 Oo 2012 first quarter production = 119 units totaling $20,086,080 O Current Pipeline © 118 units for $18,732,576
Slide 17: Orrstown Bank Results
Orrstown Bank Results (Dollars in Thousands Except Per Share Data) ee 1Q 2009 2010 += 2011-2012 Interest and Dividends on Investment Securities 5,501 9,929 11,444 1,983 Total Interest Expense 16,500 12,688 10,754 2,247 Provision 4,865 8,925 58,575 19,200 ES eee Total Noninterest Expense Less Goodwil
Slide 18: Asset Quality: Quarterly Trend
Asset Quality: Quarterly Trend a Nonperforming Assets / Risk Elements March 31, June 30, September 30, December 31, March 31, (Dollars in Thousands) 2011 2011 2011 2011 2012 Nonaccrual loans (cash basis) $ 13,106 § 14,762 § 31,174 § 83607 § 82,068 Other real estate (OREO) 847 4,240 2,754 2,165 2,413
Slide 19: The Next Months
The Next 12 Months SO G Long term shareholder value O Continue to address regulatory concerns O Resolution of problem assets o Enterprise Risk Management (ERM) priority o Careful building & strengthening of team o Core deposit growth o Leveraging of technology o Reinforcing the Orrstown brand
Slide 20: The Next Months
The Next 12 Months 8 ooo © Continued support of all lines of business O Diversification of revenue streams ® Mortgage-poised to take advantage as economy recovers ® Retail-strong branch network, product offerings, build on momentum © Orrstown Financial Advisors - continue to expand and build assets
Slide 21: Rules of Conduct Regarding Questions
Gort ORRSTOWN FINANCIAL SERVICES, INC. A Tradition of Excellence Joel Zullinger Chairman of the Board Rules of Conduct Regarding Questions
Slide 22: Closing Remarks
Gort ORRSTOWN FINANCIAL SERVICES, INC. A Tradition of Excellence Joel Zullinger Chairman of the Board Closing Remarks
Slide 23: Thank You
Gort ORRSTOWN FINANCIAL SERVICES, INC. A Tradition of Excellence Annual Shareholder Meeting Thank You
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