Orrstown Financial Services Q4 Earnings Call Highlights

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MarketBeat

Wed, January 28, 2026 astatine 9:09 AM CST 7 min read

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Record yearly nett income: Orrstown reported the highest yearly nett income successful its 106‑year past astatine $80.9 cardinal (EPS $4.18) and posted a beardown Q4 with $21.5 cardinal successful nett income.
Margin outlook nether unit from complaint cuts: Management projects 2026 nett involvement borderline of astir 3.90%–4.00%, noting caller Fed cuts and a lag successful deposit repricing but expects backing costs to statesman declining successful Q1 2026.
Growing interest income and superior flexibility: Fee income totaled $52.3 cardinal (21% of operating income) arsenic the slope expands wealthiness absorption (AUM conscionable implicit $3 billion), raised the quarterly dividend to $0.30, and says superior levels permission optionality for stock repurchases.
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Orrstown Financial Services (NASDAQ:ORRF) utilized its fourth-quarter 2025 net telephone to item grounds full-year profitability, continued fee-income growth, and a superior presumption the institution said provides flexibility arsenic it invests successful endowment and balances borderline unit from caller complaint cuts.

President and CEO Tom Quinn said the institution delivered the highest reported yearly nett income successful its 106-year history. For 2025, Orrstown reported nett income of $80.9 million, oregon $4.18 per diluted share, with instrumentality connected mean equity of 14.76% and instrumentality connected mean assets of 1.49%. Net involvement borderline was 4.04%, and interest income totaled $52.3 million, which absorption said represented 21% of full operating income.

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Senior EVP and COO Adam Metz said fourth-quarter results were likewise strong, with nett income of $21.5 million, oregon $1.11 per diluted share. Non-interest income represented 22% of operating gross successful the quarter, marking the 3rd consecutive 4th supra 20%, according to the company.

CFO Neil Kalani said fourth-quarter nett involvement borderline was 4.00%, down from 4.11% successful the 3rd quarter. He attributed the diminution to little acquisition accounting accretion—about six ground points little than the anterior quarter—and to reduced involvement income from variable-rate loans pursuing Federal Reserve complaint cuts successful September and October. Kalani besides said ongoing marketplace unit has lengthened the lag successful deposit complaint reductions.

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Looking ahead, Kalani said the institution expects backing costs to statesman declining successful the archetypal 4th of 2026 and projected 2026 nett involvement borderline successful the scope of 3.90% to 4.00%. He added that if determination were nary complaint cuts successful 2026, borderline would beryllium expected to travel successful “a small higher.” Excluding acquisition accounting impact, fourth-quarter borderline was 3.53% versus 3.59% successful the 3rd quarter, chiefly owed to the deposit-rate lag.