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ORRF Reports Q4 2025 Net Income of $21.5M

Orrstown Financial Services, Inc. has reported its fourth quarter 2025 results, showcasing a net income of $21.5 million, or $1.11 per diluted share, for the three months ended December 31, 2025. This marks a slight decrease from the net income of $21.9 million, or $1.13 per diluted share, for the three months ended September 30, 2025.

For the year ended December 31, 2025, the company reported a net income of $80.9 million and diluted earnings per share of $4.18, compared to a net income of $22.1 million and diluted earnings per share of $1.48 for the year ended December 31, 2024.

Adjusted net income and diluted earnings per share for the year ended December 31, 2025, totaled $82.9 million and $4.28, respectively, compared to $56.1 million and $3.76, respectively, for the year ended December 31, 2024 (excluding certain previously disclosed non-recurring expenses for both periods).

Return on average assets was reported at 1.55% and return on average equity at 14.73% for the three months ended December 31, 2025, compared to 1.60% and 15.72%, respectively, for the three months ended September 30, 2025.

The company also declared a cash dividend of $0.30 per common share, payable February 17, 2026, to shareholders of record as of February 10, 2026, representing a $0.03 per share increase in the company's quarterly cash dividend.

In terms of balance sheet performance, loans held for investment increased by $41.0 million, totaling $4.0 billion at both December 31, 2025, and September 30, 2025. Meanwhile, investment securities, all classified as available-for-sale, increased by $62.3 million to $952.7 million at December 31, 2025, from $890.4 million at September 30, 2025.

Noninterest income increased by $1.0 million to $14.4 million for the three months ended December 31, 2025, from $13.4 million for the three months ended September 30, 2025, driven by growth in wealth management and swap fee income.

Noninterest expenses increased by $1.1 million to $37.4 million for the three months ended December 31, 2025, from $36.3 million for the three months ended September 30, 2025, primarily due to increased health care and professional service costs.

Tangible common equity increased to 9.0% at December 31, 2025, from 8.8% at September 30, 2025, and tangible book value per common share increased to $25.21 per share at December 31, 2025, from $24.12 per share at September 30, 2025.

The market has reacted to these announcements by moving the company's shares -0.97% to a price of $36.70. For the full picture, make sure to review ORRSTOWN FINANCIAL SERVICES INC's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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