Orrstown Financial Services reported first-quarter 2026 net income of $21.8 million, up from $21.5 million in the fourth quarter of 2025 and $18.1 million a year earlier. Diluted earnings per share rose to $1.12 from $1.11 in the prior quarter and $0.93 in the first quarter of 2025.
Return on average assets improved to 1.59% from 1.55% in the fourth quarter, while return on average equity edged up to 14.76% from 14.73%.
Total loans increased $40.6 million from Dec. 31, 2025 to $4.1 billion at March 31, 2026. Commercial loans rose $31.5 million and residential mortgages added $10.1 million. Deposits climbed $98.7 million to $4.6 billion, while borrowings fell $68.0 million to $206.7 million. The loan-to-deposit ratio improved to 88% from 89%.
Net interest income declined to $49.0 million from $50.5 million in the prior quarter, and net interest margin narrowed to 3.90% from 4.00%. Interest income on loans fell $1.4 million to $63.2 million, while interest income on securities slipped to $11.1 million from $11.2 million. Interest expense eased to $25.4 million from $25.7 million.
Noninterest income increased to $15.6 million from $14.4 million, led by a jump in life insurance income to $3.8 million from $1.3 million. Swap fee income rose to $1.3 million from $1.1 million. Wealth management income was essentially flat at $5.6 million versus $5.7 million. Service charges declined to $2.9 million from $3.2 million, and other income fell to $0.2 million from $0.8 million.
Noninterest expenses decreased to $36.7 million from $37.4 million. Salaries and benefits fell to $21.2 million from $22.0 million, and professional services dropped to $1.2 million from $1.9 million. Taxes other than income increased to $0.5 million from $0.0 million.
The allowance for credit losses on loans edged down to $47.5 million from $47.7 million, while the ratio to total loans declined to 1.17% from 1.19%. Provision expense on loans increased to $0.7 million from $0.1 million, and net charge-offs rose to $0.9 million from $0.5 million. Nonaccrual loans increased to $30.0 million from $28.0 million.
Tangible common equity improved to 9.2% from 9.0%, and total risk-based capital rose to 13.5% from 13.3%. Tangible book value per common share increased to $25.76 from $25.21.
Shareholders’ equity reached $603.2 million at March 31, 2026, up from $591.5 million at Dec. 31, 2025. The board declared a quarterly cash dividend of $0.30 per share, unchanged from the prior dividend rate stated in the release. As a result of these announcements, the company's shares have moved 0.23% on the market, and are now trading at a price of $35.35. For more information, read the company's full 8-K submission here.
