Orrstown Financial Services, Inc. · NASDAQ:ORRF
Orrstown Financial Services — Q2 2025 Earnings Presentation
19 slides from Orrstown Financial Services's earnings presentation, Jul 23, 2025
Slide 1: Earnings Presentation Second Quarter 2025
Earnings Presentation Second Quarter 2025 July 23, 2025
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 2Q25 1Q25 2Q24 Qtr / Qtr Chge Yr / Yr Chge Commentary Net Income 1 $ 19.4 $ 18.1 $ 7.7 7.7% 151.3% • Profitability metrics, which are on the high-end of our peer Net Income, Adjusted 1,2 $ 20.2 $ 19.3 $ 8.7 4.5% 131.2% group, continue to improve • Merger related expenses are now
Slide 4: Net Interest Margin
Net Interest Margin Net Interest Income and Margin Change in Deposit Cost 1 80.0 5.00% 7.00% 4.14% 4.05% 4.00% 4.07% 3.54% 4.00% 6.00% 5.33% 5.26% 60.0 4.65% 5.00% 4.33% 4.33% 3.00% 40.0 4.00% 2.00% 2.67% 2.95% 2.81% 2.65% 2.51% $51.7 $50.6 $48.8 $49.5 3.00% 20.0 1.00% $26.1 2.00% - 0.00% 1.00% 2Q24
Slide 5: Fee Income / Operating Revenue
Fee Income Non-Interest Income Non-Interest Income Breakout $ In Millions $12.4 $12.9 24% $11.2 $11.6 Wealth management 20% $7.2 Mortgage banking Interchange income Service charges 11% 2Q24 3Q24 4Q24 1Q25 2Q25 Other income 4% 41% • Noninterest income increased by $1.3 million to $12.9 million during
Slide 6: Non-Interest Expenses
Non-Interest Expenses Non-Interest Expenses Efficiency Ratio 1 $ In thousands 60,299 65% 62% 61% 60% 59% 42,930 2Q24 3Q24 4Q24 1Q25 2Q25 38,176 37,614 • Noninterest expenses decreased by $0.6 million quarter over quarter, totaling $37.6 million for the three months ended June 30, 22,639 2025. o Merg
Slide 7: Credit Quality
Credit Quality Charge-offs & Non-Performing Loans 0.49% • The allowance for credit losses ("ACL") on loans increased to $47.9 0.45% 0.42% 0.42% million during the quarter. 0.30% o The Company recorded provision expense on loans totaling $0.2 million, which 0.26% included net charge-offs of $0.1 mill
Slide 8: Earnings & Key Performance Metrics
Earnings & Key Performance Metrics Earnings 1 Tangible Common Equity and TCE/TA % $1.11 50.00 $1.04 $1.25 8.1% 8.3% $60 0 9.9 % $1.00 7.9% $0.83 $0.87 $50 0 7.5% 7.5% 8.7 % 40.00 $0.75 7.5 % $0.20 $0.23 $0.23 $0.26 $0.26 $445 $429 $40 0 6.3 % 30.00 $0.25 $409 $411 5.1 % $30 0 3.9 % 20.00 ($0.25) $21
Slide 9: Loans
Loans Trend 1 Composition 2 $ In Millions Non-owner $3,981 $3,931 $3,876 $3,931 occupied CRE Owner 31% $779 $788 $785 $826 occupied CRE $2,348 16% Agricultural $477 3% $3,202 $3,143 $3,091 $3,105 Yield on $1,870 Acquisition & Multi-family development Loans: 6% 6% 6.52% 3 2Q24 3Q24 4Q24 1Q25 2Q25 Non
Slide 10: Deposits
Deposits Trend 1 Composition 2 $ In Millions $4,651 $4,623 $4,634 $4,517 Interest DDA $1,007 $993 $945 $887 27% $2,703 $489 Non-Interest $3,644 $3,630 $3,688 $3,629 DDA Cost of $2,213 20% Deposits: 2.01% 3 Money 2Q24 3Q24 4Q24 1Q25 2Q25 Markets Core Deposits Time Deposits 27% • Deposits decreased by
Slide 11: Investments
Investments Portfolio Metrics Composition 3 Total Portfolio $885.4MM % of Assets 16.4% Agency CMO 40% Duration 4.5 Years Agency MBS 23% Yield 4.70% AOCI ($24.3MM) Trends – Balances / AOCI / Yields 1,2 4.77% Other 4.66% 4.65% 4.70% 4.54% 4% 1,100.00 Municipal $885.4 ABS $826.8 $829.7 $855.5 23% 900.0
Slide 12: Capital
Capital Total Risk Based Capital Ratio 13.3% 13.1% 13.1% 13.0% 13.3% 13.3% • All capital ratios applicable to the Company and Bank 12.4% 12.2% 12.4% 12.4% were above relevant regulatory minimum levels to be deemed "well capitalized" under current bank regulatory guidelines. • Capital Ratios have ret
Slide 13: Strategic Focus
Strategic Focus 1 Recruit talent throughout our footprint to drive and facilitate growth 2 Maximize automation and implement operational efficiencies 3 Maintain focus on loan and deposit growth 4 Deploy excess liquidity to drive prudent growth and enhance net interest income 5 Evaluate expansion and
Slide 14: 2025 Guidance
2025 Guidance Loan 5.0% annualized growth for remainder of year Growth Margin Range: 4.05% to 4.15% Non-Interest Range: $46.0 million to $50.0 million (annualized) Income Non-Interest Expenses Range: $140.0 million to $145.0 million (annualized) Effective Approximately 21% Tax Rate Assumes the inter
Slide 15: Q&A
Q&A ORRSTOWN FINANCIAL SERVICES, INC.
Slide 16: 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 17: Reconciliation: Net Income / Diluted EPS / Ratios
GAAP to Non-GAAP Reconciliation Net Income / Diluted EPS / Ratios 2Q24 3Q24 4Q24 1Q25 2Q25 (Presented In M illions except for Diluted EPS) Average Assets $ 3,211.1 $ 5,515.1 $ 5,464.2 $ 5,425.7 $ 5,374.8 Average Equity 272.8 537.7 516.4 523.7 535.7 Net Income (GAAP) $ 7.7 $ (7.9) $ 13.7 18.1 19.4 Ad
Slide 18: Reconciliation: Efficiency Ratio
GAAP to Non-GAAP Reconciliation Efficiency Ratio (Non-GAAP) 2Q24 3Q24 4Q24 1Q25 2Q25 (Presented In M illions) Net Interest Income $ 26.1 $ 51.7 $ 50.6 $ 48.8 $ 49.5 Plus Non-Interest Income 7.2 12.4 11.2 11.6 12.9 Total Revenue (A) $ 33.3 $ 64.1 $ 61.8 $ 60.4 $ 62.4 Non-Interest Expense $ 22.6 $ 60.
Slide 19: Reconciliation: Tangible Book Value
GAAP to Non-GAAP Reconciliation Tangible Book Value (Non-GAAP) 2Q24 3Q24 4Q24 1Q25 2Q25 (Presented in M illions except for Tangible Book Value Per Share) Total Shareholders' Equity (GAAP) $ 278.4 $ 516.2 $ 516.7 $ 532.9 $ 548.4 Less Goodwill 18.7 70.7 68.1 68.1 69.8 Less Intangible Assets 2.0 46.1 4
Orrstown Financial Services — Q2 2025 Earnings Presentation on 6ix