Orrstown Financial Services, Inc. · NASDAQ:ORRF
Orrstown Financial Services — Investor Presentation (February 2015)
18 slides from Orrstown Financial Services's investor presentation, Feb 5, 2015
Slide 1: Orrstown Financial Services, Inc. Investor Presentation
Orrstown Financial Services, Inc. Investor Presentation February 3, 2015 Exhibit 99
Slide 2: Forward-Looking Statements
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 not statements of historical
Slide 3: Orrstown Financial Services, Inc.
3 Orrstown Financial Services, Inc. $1.19 billion in assets Headquartered in Shippensburg, PA 22 locations in Pennsylvania and Maryland • 9 branches in Cumberland • 7 branches in Franklin • 4 branches in Perry • 1 branch in Washington, MD • 1 financial services center in Lancaster Customer-f
Slide 4: Experienced Leadership Team
4 Experienced Leadership Team Name / Title Banking Experience Joined ORRF Experience / Disciplines Prior Experience Thomas R. Quinn President and CEO 24 Years 2009 CEO, Strategy, Sales, Executive Citi, Fifth Third David P. Boyle Chief Financial Officer 23 Years 2012 Finance, Treasury, Strategy, Exec
Slide 5: Investment Considerations
5 Investment Considerations Financial performance historically above peers Late to the credit challenge cycle (2011 - 2012) Significant management changes Dealt with issues swiftly and decisively Returned to profitability 4Q 2012 Orrstown Financial Services, Inc. (ORRF) Central Pennsylvani
Slide 6: Frequently Asked Questions From Institutional and Retail Investors
6 Frequently Asked Questions From Institutional and Retail Investors Institutional Investors are asking: When will you be released from regulatory enforcement actions? How will you deploy your excess capital? When will you become acquisitive and what is your growth strategy? How are you go
Slide 7: Operating Strategy & Strategic Initiatives
7 Operating Strategy & Strategic Initiatives Goal: Position the Company for sustained growth now and in the future • Reinvest for future growth • Maintain an acceptable risk profile • Expand market share (acquisition and new markets) • Disciplined expense control Regulatory Orders: Credit and Risk M
Slide 8: Summary Financial Highlights
8 Summary Financial Highlights 1. The efficiency ratio expresses noninterest expense as a percentage of tax equivalent net interest income and noninterest income, excluding securities gains, intangible amortization and impairment, and other non-recurring items. 2. The ratio of tangible common equity
Slide 9: Deposit Composition (12/31/2014)
9 Deposit Composition (12/31/2014) Non- interest bearing, 12% Now and money market, 53% Savings, 9% Time < $100,000 [VALUE] Time > $100,000 [VALUE] $949.7 million in total deposits Significant deposit franchise with nearly 90% core Limited use of wholesale and brokered deposits Effectively manag
Slide 10: Loan Composition (12/31/2014)
10 Loan Composition (12/31/2014) 45% 4% 7% 9% 34% 1% Commercial real estate Acquisition and development Commercial and industrial Municipal Residential mortgage Installment $704.95 million MRQ yield 4.40%
Slide 11: Expansion Opportunities
11 Acquisition of top-performing and seasoned talent due to market disruption Expansion into new markets based on strong demographics Loan Production Offices Full service branches Investment and Trust Services Branch Franchise Acquisitions Whole Company Mergers Expansion Opportunities
Slide 12: Orrstown Bank – Organic Growth Potential
12 Orrstown Bank – Organic Growth Potential Tier 1 capital capacity to grow over $200 million Business as usual of 5%-7% balance sheet growth Enhance opportunities (“budget beat”) through: Leveraging data and investments of best-in-class “tech shop” Leveraging balance sheet (current loan t
Slide 13: Market Area
13 Market Area Currently operating 21 full-service locations along the Route 81 corridor from Washington County, Maryland through Franklin, Cumberland and Perry Counties, Pennsylvania; LPO in Lancaster County The combined population of the current market area is approximately 580,000 as of June
Slide 14: Market Potential – Deposits
14 Market Potential – Deposits Bank Three year deposit growth* Total Deposits# (000) Bank A 7.25% $800,643 Bank B 15.17% $845,724 Bank C 14.92% $2,380,672 Bank D 42.12% $739,000 Bank E 9.58% $608,130 Bank F 11.77% $954,973 Bank G 6.72% $13,367,506 Bank H 33.35% $13,721,843 Average/Total 17.62% $33,4
Slide 15: Market Potential – Loans
15 Market Potential – Loans Bank Three year Loan growth* Total loans# (000) Bank A 9.18% $713,053 Bank B -3.51% $714,060 Bank C 38.90% $1,978,532 Bank D 41.88% $665,120 Bank E 17.25% $540,145 Bank F 32.24% $909,392 Bank G 10.06% $12,945,094 Bank H 30.42% $13,381,360 Average/Total 22.05% $31,846,756
Slide 16: Poised to Take Advantage of Market Disruption
16 Mergers in process in highly attractive markets will provide growth opportunities as fall out occurs Several other larger local players facing inflection points in 2015 100 Banks within two hour drive of Orrstown have less than $750 million in assets We have successfully overcome regulato
Slide 17: Purposeful and Deliberate M & A Activity
17 Purposeful and Deliberate M & A Activity Seeking partners that are shareholder value driven: EPS accretion in 20% range Growth markets Strategic fit Cultural fit Growth opportunity Expense savings Earn back of TBV dilution 3 years +_
Slide 18: Summary Highlights
18 Summary Highlights Established South Central Pennsylvania bank Deep and experienced Management team with strong operational ability Aggressively dealt with Regulatory/asset quality issues. Strategic plans in place to drive core earnings growth, with a return to annual profitability in 201
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