Orrstown Financial Services, Inc. · NASDAQ:ORRF
Orrstown Financial Services — Q2 2026 Earnings Presentation
18 slides from Orrstown Financial Services's earnings presentation, Jul 22, 2026
Slide 1: Earnings Presentation Second Quarter 2026
Earnings Presentation Second Quarter 2026 July 22, 2026
Slide 2: 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 3: Financial Highlights
Financial Highlights 2Q26 1Q26 2Q25 Qtr / Qtr Chge Yr / Yr Chge Quarterly Commentary Net Income 1 $ 21.2 $ 21.8 $ 19.4 -3.0% 8.8% • Another strong quarter by the Company highlighted by net income of $21.2 million and $1.09 per diluted share. Net Income, Adjusted 1,2 n/a n/a $ 20.2 n/a n/a • The Bank
Slide 4: Net Interest Income and Margin
Net Interest Margin Net Interest Income and Margin 1 Change in Deposit Cost 2 80.0 4.50% 4.07% 4.11% 4.00% 4.00% 3.90% 60.0 4.00% 4.33% 4.29% 3.90% 40.0 3.50% 3.64% 3.63% $49.5 $51.0 $50.5 $49.0 $48.8 20.0 3.00% 2.51% 2.49% 2.46% 2.41% 2.33% - 2.50% 2Q25 3Q25 4Q25 1Q26 2Q26 2Q25 3Q25 4Q25 1Q26 2Q26
Slide 5: Fee Income / Operating Revenue
Fee Income Non-Interest Income Non-Interest Income Breakout 1 $ In Millions 10% $15.6 5% $13.4 $14.4 $13.8 Wealth management $12.9 8% 20% Mortgage banking Interchange income Service charges 11% Income from life Insurance 2Q25 3Q25 4Q25 1Q26 2Q26 Swap fee income • Noninterest income decreased by $1.8
Slide 6: Non-Interest Expenses and Efficiency Ratio
Non-Interest Expenses Non-Interest Expenses Efficiency Ratio 1 $ In Millions $37.6 $37.4 $36.7 $37.7 $36.3 58.7% 57.5% 58.6% 56.4% 56.9% 2Q25 3Q25 4Q25 1Q26 2Q26 • Non-interest expenses increased by $1.0 million quarter-over-quarter, totaling $37.7 million for the three months ended June 30, 2026. o
Slide 7: Credit Quality: Charge-offs & Non-Performing Loans
Credit Quality Charge-offs & Non-Performing Loans 0.56% • The allowance for credit losses ("ACL") on loans totaled 0.48% 0.51% 0.42% 0.44% $46.6 million at June 30, 2026. o The ACL as a percentage of total loans ended the quarter at 1.13%. 0.12% 0.05% 0.09% o The Bank recorded provision expense of $
Slide 8: Earnings & Key Performance Metrics
Earnings & Key Performance Metrics Earnings 1 Tangible Common Equity and TCE/TA % $1.04 $1.13 $1.11 $1.12 $1.09 50.00 9.0% 9.2% 9.5% $60 0 8.3% 8.8% 10. 0% 40.00 $0.75 9.0 % $0.27 $0.27 $0.30 $0.30 $525 $50 0 $0.26 $492 $505 8.0 % 30.00 $0.25 $40 0 $445 $470 7.0 % 6.0 % $30 0 20.00 ($0.25) 5.0 % $20
Slide 9: Loans: Trend Composition
Loans Trend 1 Composition 2 $ In Millions Non-owner $3,931 $3,980 $4,021 $4,061 $4,113 occupied CRE Owner 32% $824 $834 $848 $856 $889 occupied CRE 16% Agricultural Yield on 2% $3,108 $3,146 $3,173 $3,205 $3,224 Acquisition & Multi-family development Loans: 6% 6% 6.25% 3 Non-owner occupied 2Q25 3Q25
Slide 10: Deposits: Trend Composition
Deposits Trend 1 Composition 2 $ In Millions Interest DDA $4,517 $4,534 $4,529 $4,627 $4,620 26% $887 $924 $902 $911 $884 Non-Interest $3,629 $3,610 $3,627 $3,717 $3,736 DDA Cost of 20% Deposits: 2Q25 3Q25 4Q25 1Q26 2Q26 1.88% 3 Money Core Deposits Time Deposits Markets 29% • Deposits decreased by $
Slide 11: Investments
Investments Portfolio Metrics Composition 3 Total Portfolio (FV) $949.3MM Agency CMO % of Assets 16.9% 37% Agency MBS Duration 4.5 Years 32% Yield 4.57% AOCI (Tax Adj.) ($18.9MM) Other 2% Trends – Balances / AOCI / Yields 1,2 ABS Municipal 8% 4.70% 4.67% 21% 4.58% 4.57% 4.51% • The investment portfo
Slide 12: Capital
Capital Total Risk Based Capital Ratio • Ratios remain sound and capital generation expectations are strong going forward. 13.3% 13.3% 13.1% 12.9% 13.3% 13.3% 13.5% 13.6% 13.2% 13.1% • All capital ratios applicable to the Company and Bank were above relevant regulatory minimum levels to be deemed "w
Slide 13: Guidance through 2026
Guidance through 2026 Loan 5.0% annualized growth Growth Margin Range: 3.90% to 4.00% Non-Interest Range: $53.0 million to $55.0 million (annualized) Income Non-Interest Expenses Range: $148.0 million to $151.0 million (annualized) Effective Approximately 21% Tax Rate 13
Slide 14: Q&A
Q&A ORRSTOWN FINANCIAL SERVICES, INC.
Slide 15: Reconciliation of Non-GAAP Measures to GAAP Results
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 understanding
Slide 16: Reconciliation: Net Income / Diluted EPS / Ratios
GAAP to Non-GAAP Reconciliation Net Income / Diluted EPS / Ratios 2Q25 3Q25 4Q25 1Q26 2Q26 (Presented In M illions except for Diluted EPS) Average Assets $ 5,374.8 $ 5,420.8 $ 5,505.3 $ 5,548.8 $ 5,542.9 Average Equity 535.7 551.9 578.9 599.3 608.1 Net Income (GAAP) $ 19.4 $ 21.9 $ 21.5 $ 21.8 $ 21.
Slide 17: Reconciliation: Efficiency Ratio
GAAP to Non-GAAP Reconciliation Efficiency Ratio 2Q25 3Q25 4Q25 1Q26 2Q26 (Presented In M illions) Net Interest Income $ 49.5 $ 51.0 $ 50.5 $ 49.0 $ 48.8 Plus Non-Interest Income 12.9 13.4 14.4 15.6 13.8 Total Revenue (A) $ 62.4 $ 64.4 $ 64.9 $ 64.6 $ 62.7 Plus: Accelerated amortization of fair valu
Slide 18: Reconciliation: Tangible Book Value
GAAP to Non-GAAP Reconciliation Tangible Book Value 2Q25 3Q25 4Q25 1Q26 2Q26 (Presented in M illions except for Tangible Book Value Per Share) Total Shareholders' Equity (GAAP) $ 548.4 $ 571.9 $ 591.5 $ 603.2 $ 621.7 Less Goodwill 69.8 69.8 69.8 69.8 69.8 Less Intangible Assets 42.7 40.3 38.0 35.8 3
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