Orrstown Financial Services, Inc. reported significant financial growth in its latest quarterly results, with net income reaching $19.4 million for the three months ended June 30, 2025, compared to $7.7 million for the same period in 2024. This translates to diluted earnings per share of $1.01, up from $0.73 a year earlier. For the first half of 2025, net income totaled $37.5 million, a substantial increase from $16.3 million in the prior year. The company attributed this growth primarily to the merger with Codorus Valley Bancorp, which was completed on July 1, 2024, resulting in a net accretion impact of purchase accounting marks of $5.2 million for the quarter.
Total assets for Orrstown stood at $5.4 billion as of June 30, 2025, a slight decrease from $5.4 billion at the end of 2024. The company’s total liabilities also decreased to $4.8 billion from $4.9 billion, while total shareholders' equity increased to $548.4 million, up from $516.7 million. The increase in equity was driven by net income and other comprehensive income, despite the payment of dividends totaling $10.1 million during the first half of 2025. The company’s allowance for credit losses (ACL) was $47.9 million, representing 1.22% of total loans, a slight decrease from 1.27% a year earlier.
Orrstown's loan portfolio remained stable, totaling $3.9 billion as of June 30, 2025, with a modest increase in commercial and industrial loans. The company has strategically reduced its exposure to commercial real estate loans while increasing its holdings in property assessed clean energy (PACE) loans. The merger has also contributed to a significant rise in noninterest income, which reached $12.9 million for the quarter, up from $7.2 million in the previous year, largely due to increased wealth management income and service charges.
Looking ahead, Orrstown Financial Services expressed optimism about its growth trajectory, bolstered by the merger's synergies and an expanding product suite. The company is focused on enhancing its operational efficiency and managing credit risk effectively, particularly in light of current economic conditions. The management remains vigilant regarding market fluctuations and their potential impact on the company's financial performance, particularly in relation to interest rates and credit quality.
About ORRSTOWN FINANCIAL SERVICES INC
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