News about ORRF

Orrstown Financial reported third-quarter net income of $22.8 million, or $1.17 per diluted share, up from $21.2 million, or $1.09, in the prior quarter. Net interest margin rose to 4.12% from 3.87% as core loan yields offset the scheduled decline in purchase accounting accretion, and the efficiency ratio improved to 56.0% from 60.1%. Total loans reached $4.2 billion, growing 9% annualized, while deposits were $4.6 billion and borrowings rose to $417.3 million from $274.8 million to fund loan growth amid seasonal deposit outflows. Management guided to a net interest margin of 4.05% to 4.15% through 2027, and warned that deposit costs could run higher than expected and loan growth could land at the low end of the mid-single digit range, depending on rate movements. The tangible common equity ratio fell to 9.1% from 9.5% due to a $41.6 million increase in unrealized losses on the investment portfolio.