Orrstown Q4 net income declines slightly

Overview

• U.S. bank's Q4 net income slightly declined compared to the previous quarter

• Net interest margin decreased to 4.00% in Q4 from 4.11% in Q3

• Noninterest income increased by $1.0 mln in Q4, driven by wealth management and swap fees

Outlook

• Orrstown expects continued loan growth in the first quarter of 2026

• Company sees significant upside opportunities ahead

• Orrstown confident in ability to grow loan portfolio responsibly

Result Drivers

• LOAN GROWTH - Total loans increased by $41.0 mln, or approximately 4% annualized, indicating steady growth in the loan portfolio

• NONINTEREST INCOME - Noninterest income rose by $1.0 mln due to growth in wealth management and swap fees

• NONINTEREST EXPENSES - Noninterest expenses increased by $1.1 mln, primarily due to higher healthcare and professional service costs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Orrstown Financial Services Inc is $40.00, about 11% above its January 26 closing price of $36.04

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNX4ZN3fQ

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