Orrstown Financial Services Stock Earnings Reports

Orrstown Financial reported a strong Q2 2026 with net income of $21.2 million ($1.09 diluted EPS), ROAA of 1.53% and ROAE of 13.96%. Adjusted net interest margin was 4.00% (reported 3.87% including a one-time $1.6M subordinated debt redemption charge). Fee income was $13.8M (22.1% of operating income) with wealth management producing a record quarter ($5.9M). Loans grew 5% annualized during the quarter with commercial production of $286M, though some fundings occurred late in June and weren’t fully reflected in interest income. Credit metrics improved: classified and nonaccrual loans declined, net charge-offs were ~$1.2M, provision expense was $338k, and the allowance coverage ratio was 1.13%. Deposits declined modestly (-$7.4M) but noninterest-bearing deposit balances rose $39M; cost of deposits fell to 1.88%. The company redeemed $31M of subordinated debt (one-time charge), which reduced regulatory capital this quarter but management expects to recover that capital within two quarters via earnings. Management reiterated full-year guidance ranges and said they now expect to be at the higher end of the NIM guidance (3.90%–4.00% excl. the redemption charge) on an adjusted basis. The board declared a $0.30 quarterly dividend. Management emphasized continued focus on deposit mix, prudent lending, fee income growth (especially wealth), expense discipline, and capital allocation to build long-term shareholder value.