Orrstown Financial Services, Inc. · NASDAQ:ORRF
Orrstown Financial Services — Q1 2025 Earnings Presentation
18 slides from Orrstown Financial Services's earnings presentation, Apr 23, 2025
Slide 1: Earnings Presentation First Quarter 2025
Earnings Presentation First Quarter 2025 April 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 Commentary Qtr / Qtr Yr / Yr 1Q25 4Q24 1Q24 Chge Chge Net Income 1 $ 18.1 $ 13.7 $ 8.5 31.9% 111.6% • Profitability metrics on both a GAAP and core operating Net Income, Adjusted 1,2 $ 19.3 $ 16.7 $ 9.2 15.8% 110.1% basis improved significantly from 4Q’24 • Shifted focus in late
Slide 4: Loans
Loans Trend 1 Composition 2 $ In Millions Non-owner $3,981 $3,931 $3,876 occupied CRE Owner 30% $779 $788 $785 occupied CRE $2,303 $2,348 16% Agricultural $475 $477 3% $3,202 $3,143 $3,091 Yield on Acquisition & $1,829 $1,870 Multi-family development Loans: 7% 7% 6.59% 3 1Q24 2Q24 3Q24 4Q24 1Q25 Non
Slide 5: Deposits
Deposits Trend 1 Composition 2 $ In Millions $4,651 $4,623 $4,634 Interest DDA $1,007 $993 $945 28% $2,696 $2,703 $457 $489 Non-Interest $3,644 $3,630 $3,688 DDA Cost of $2,239 $2,213 20% Deposits: 2.14% 3 Money 1Q24 2Q24 3Q24 4Q24 1Q25 Markets Core Deposits Time Deposits 26% • Deposits increased by
Slide 6: Investments
Investments Portfolio Metrics Composition 3 Total Portfolio $855.5MM % of Assets 15.7% Agency CMO 39% Agency MBS Duration 4.3 Years 19% Yield 4.65% AOCI ($24.0)MM Trends – Balances / AOCI / Yields 1,2 4.77% 4.66% 4.65% Other Municipal 1,100.00 4.54% 4.39% 8% 24% 900.00 $826.8 $829.7 $855.5 ABS 10% 7
Slide 7: Net Interest Margin
Net Interest Margin Net Interest Income and Margin Change in Deposit Cost 2 80.0 5.00% 7.00% 4.14% 4.05% 4.00% 3.77% 6.00% 5.33% 5.33% 3.54% 4.00% 5.26% 60.0 4.65% 5.00% 4.33% 3.00% 40.0 4.00% 2.00% 2.67% 2.95% 2.81% 2.51% 2.65% $51.7 $50.6 $48.8 3.00% 20.0 1.00% $26.9 $26.1 2.00% - 0.00% 1.00% 1Q24
Slide 8: Fee Income
Fee Income Non-Interest Income Non-Interest Income Breakout $ In Millions 18% $12.4 $11.6 21% $11.2 Wealth management $6.6 $7.2 Mortgage banking Interchange income 12% 1Q24 2Q24 3Q24 4Q24 1Q25 Service charges 2% • Noninterest income increased by $0.4 million to $11.6 million during the quarter. Othe
Slide 9: Non-Interest Expenses
Non-Interest Expenses Non-Interest Expenses Efficiency Ratio 1 $ In thousands 60,299 65% 65% 62% 60% 61% 42,930 38,176 1Q24 2Q24 3Q24 4Q24 1Q25 22,469 22,639 • Noninterest expenses decreased by $4.7 million quarter over quarter, totaling $38.2 million for the three months ended March 31, 2025. o Mer
Slide 10: Credit Quality
Credit Quality Charge-offs & Non-Performing Loans 0.49% 0.45% • The allowance for credit losses ("ACL") on loans decreased to $47.8 0.40% 0.42% million during the quarter. 0.26% 0.30% o The Company recorded a release in the ACL totaling $0.6 million which included net charge-offs of $0.3 million. o
Slide 11: Earnings & Key Performance Metrics
Earnings & Key Performance Metrics Earnings 1 Tangible Common Equity and TCE/TA % $1.11 8.1% $600 9.9% 50.00 $1.00 $1.25 7.9% 7.9% $0.88 $0.83 $0.87 $500 7.5% 7.5% 8.7% 40.00 $0.75 7.5% $0.20 $0.20 $0.23 $0.23 $0.26 $429 $400 6.3% 30.00 $0.25 $409 $411 5.1% $300 3.9% 20.00 ($0.25) $21.4 $19.3 $200 $
Slide 12: Capital
Capital Total Risk Based Capital Ratio 13.4% 13.1% 13.3% 13.1% 13.1% 13.0% • 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 are appr
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 Return focus to loan and deposit growth 4 Deploy excess liquidity to drive prudent growth and enhance net interest income 5 Evaluate expansion and a
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: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Net Income / Diluted EPS / Ratios 1Q24 2Q24 3Q24 4Q24 1Q25 (Presented In M illions except for Dil uted EPS) Average Assets $ 3,098.8 $ 3,211.1 $ 5,515.1 $ 5,464.2 $ 5,425.7 Average Equity 268.3 272.8 537.7 516.4 523.7 Net Income (GAAP) $ 8.5 $ 7.7 $ (7.9) $ 13.7 18.1
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Efficiency Ratio (Non-GAAP) 1Q24 2Q24 3Q24 4Q24 1Q25 (Presented In M ill ions) Net Interest Income $ 26.9 $ 26.1 $ 51.7 $ 50.6 $ 48.8 Plus Non-Interest Income 6.6 7.2 12.4 11.2 11.6 Total Revenue (A) $ 33.5 $ 33.3 $ 64.1 $ 61.8 $ 60.4 Non-Interest Expense $ 22.5 $ 22.
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Tangible Book Value (Non-GAAP) 1Q24 2Q24 3Q24 4Q24 1Q25 (Presented in M il lions except for Tangible Book Value Per Share) Total Shareholders' Equity (GAAP) $ 271.7 $ 278.4 $ 516.2 $ 516.7 $ 532.9 Less Goodwill 18.7 18.7 70.7 68.1 68.1 Less Intangible Assets 2.2 2.0 4
Orrstown Financial Services — Q1 2025 Earnings Presentation on 6ix