ORRF

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Net interest margin expanded to 4.00% on an adjusted basis, driven by proactive deposit rate adjustments and reduced reliance on overnight borrowings. Annualized loan growth of 5% was achieved despite higher-than-expected payoffs., with significant commercial production occurring late in the quarter. Wealth management income reached record levels of $5.9 million, serving as a consistent and growing source of non-interest income. Credit quality trends remain positive, characterized by steady declines in classified and nonaccrual loans and no significant signs of macro-level stress. The bank successfully shifted its deposit mix, increasing non-interest-bearing deposits by $39 million to lower overall funding costs. Management redeemed the remaining subordinated notes to enhance future earnings, despite a one-time charge to interest expense. Management raised expectations for the full-year net interest margin to the higher end of the 3.90% to 4.00% range on an adjusted basis. The capital impact from the subordinated debt redemption is expected to be fully recovered within two quarters through future earnings generation. Non-interest income is projected to remain stable in a similar range to the second quarter for the remainder of the year. Operating expenses are anticipated to trend slightly lower in the third quarter, landing at the lower end of previous full-year guidance. The bank maintains a neutral to slightly asset-sensitive position, focusing on pricing discipline to navigate potential interest rate volatility. A $1.6 million one-time charge was incurred due to the redemption of $31 million in subordinated debt, which was partially offset by a tax credit. Fee income included $2.4 million of life insurance benefits in the prior quarter, making the current quarter's underlying fee growth approximately $600,000 higher. The allowance coverage ratio was adjusted to 1.13% following qualitative factor improvements in the credit model. Total risk-based capital ratio declined temporarily following the debt redemption, though tangible book value per share continues to grow. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that the back-weighted growth was due to client-driven timing and unexpected early-quarter payoffs rather than macro factors. The commercial pipeline remains strong, supporting confidence in full-year growth guidance. Management believes deposit costs have bottomed out and expects the margin to hold around the 4% level. The strategy remains focused on shifting the mix toward non-interest-bearing operating accounts to defend against competitive pricing pressures. Owner-occupied commercial real estate growth was distributed across core geographic markets rather than concentrated in one area. The uptick in home equity loans is a deliberate strategic focus to diversify the loan portfolio and is expected to continue.

This article first appeared on GuruFocus. Net Income: $21.2 million or $1.09 per diluted share. Return on Average Assets: 1.53%. Return on Average Equity: 13.96%. Net Interest Margin: Improved to 4% excluding a one-time charge. Fee Income: $13.8 million, contributing 22.1% of total operating income. Wealth Management Income: $5.9 million, highest quarterly income on record. Non-Interest Expenses: Increased by $938,000 to $37.7 million. Provision Expense: $338,000 for the quarter. Net Charge-Offs: Approximately $1.2 million. Allowance Coverage Ratio: 1.13% at June 30. Loan Growth: Annualized growth of 5% for the quarter. Deposits: Declined by $7.4 million in the second quarter. Cost of Total Deposits: Declined to 1.88% from 1.96%. Unrealized Losses: Declined to $18.9 million in the investment portfolio. Total Risk-Based Capital Ratio: Declined due to redemption of subordinated debt. Warning! GuruFocus has detected 5 Warning Signs with ORRF. Is ORRF fairly valued? Test your thesis with our free DCF calculator. Release Date: July 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Orrstown Financial Services Inc (NASDAQ:ORRF) reported strong net income of $21.2 million or $1.09 per diluted share. The company's net interest margin improved to 4% during the quarter, excluding a one-time charge. Credit quality remains strong with a decrease in classified and non-accrual loans. Wealth management income reached a record high of $5.9 million for the quarter. The company declared a quarterly dividend of $0.30 per share, reflecting confidence in future earnings. Fee income declined to $13.8 million from $15.6 million in the previous quarter. Non-interest expenses increased by $938,000 due to higher salaries and healthcare costs. Deposits declined by $7.4 million in the second quarter, indicating potential challenges in deposit growth. The redemption of subordinated debt resulted in a $1.6 million charge, impacting short-term financials. The deposit environment remains competitive, posing risks to future pricing pressures and deposit generation. Q: Can you provide more color on the loan growth, particularly the acceleration in June and its impact on Q3? A: The loan growth, especially in commercial, was primarily a timing issue. We experienced unexpected payoffs earlier in the quarter, but the pipeline remains strong, and we are optimistic about future growth. There were no macro-level factors affecting this; it was client-driven timing. - Adam Metz, CEO Q: What was the spot net interest margin (NIM) at the end of the quarter, excluding the debt redemption, and what are your expectations going forward? A: Excluding the subordinated debt impact, we were around the 4% level for most of the quarter. We expect to maintain this level going forward, with potential for slight improvement. Our focus remains on maintaining and potentially driving the margin higher. - Neelesh Kalani, CFO Q: How is the deposit competition in your markets, and are there any areas with intensified competition? A: We haven't seen intensified competition in any specific area. We feel competitive and have successfully shifted our mix towards non-interest-bearing deposits. - Adam Metz, CEO Q: What is your positioning if there are future Fed rate hikes, and how will it impact the overall margin? A: We are slightly asset-sensitive but more on the neutral side. Our focus will continue to be on pricing going forward. - Neelesh Kalani, CFO Q: Can you discuss the geographies for owner-occupied CRE loan growth and the trend in home equity loans? A: The owner-occupied CRE loan growth was spread across our core geographic markets. Regarding home equity loans, we saw an uptick this quarter, which aligns with our focus on diversifying loan growth opportunities. - Neelesh Kalani, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Orrstown Financial Services Inc? Here are five stocks we like better. Orrstown Financial Services posted second-quarter 2026 net income of $21.2 million, or $1.09 per diluted share, with management highlighting strong earnings, solid credit quality, and a quarterly dividend of $0.30 per share. The company’s net interest margin improved to 4% on an adjusted basis after a one-time subordinated debt redemption charge, and management expects full-year margin to land near the top of its 3.90% to 4% guidance range. Fee income and loan growth remained supportive, with wealth management income hitting a record quarter and loan production staying strong despite late-quarter payoffs; deposit mix also improved as non-interest-bearing balances rose and funding costs declined. Orrstown Financial Services (NASDAQ:ORRF) reported what executives described as another strong quarter, with second-quarter 2026 net income of $21.2 million, or $1.09 per diluted share, as improved funding costs and continued fee income strength supported results. President and Chief Executive Officer Adam Metz said the company delivered “strong net income, earnings per share, return on average assets, and return on average equity,” adding that credit quality remained solid during the quarter. Orrstown’s board also declared a quarterly dividend of $0.30 per share, payable in August. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks Chief Financial Officer Neil Kalani said Orrstown’s reported net interest margin was affected by a one-time $1.6 million charge tied to the redemption of subordinated debt. Excluding that charge, Kalani said the margin returned to 4%, matching the level from the fourth quarter of 2025. Kalani attributed the margin expansion to actions taken on funding costs and reduced reliance on overnight borrowings after deposit inflows in the first quarter. He said deposit costs appear to have “bottomed out” at this stage, while noting that the deposit environment remains competitive. → 3 Photonics Companies Making Quantum Tech Possible Orrstown maintained its prior 2026 net interest margin guidance range of 3.90% to 4%, excluding the subordinated debt charge. Kalani said he now expects the company to be at the higher end of that range for the full year on an adjusted basis. In response to a question from KBW analyst Tim Switzer, Kalani said the company was near the 4% margin level for much of the quarter, particularly in the back half, and expects to remain around that level going forward. He said Orrstown is “still slightly asset sensitive, but more on the neutral side” if interest rates move higher. → AI Data Centers Need Power, and These 2 Industrials Are Cashing In Non-interest income totaled $13.8 million in the second quarter, down from $15.6 million in the first quarter. Kalani noted that the first quarter included $2.4 million of life insurance benefits; excluding that item, fee income rose by about $600,000 sequentially. Orrstown Financial Advisors, the company’s wealth management business, generated $5.9 million of income, up from $5.6 million in the prior quarter. Kalani said that was the unit’s highest quarterly income on record. Swap fees totaled about $700,000 in the quarter. Kalani said that line item will continue to fluctuate based on timing, but remains a consistent source of fee income for the company. He said he expects non-interest income to remain in a similar range to the second quarter for the rest of the year, with full-year guidance unchanged. Orrstown reported annualized loan growth of 5% for the quarter, despite higher-than-expected payoffs and paydowns. Metz said a meaningful portion of the growth occurred late in the quarter, limiting its impact on second-quarter interest income. Kalani said the company had $286 million of commercial loan production during the quarter, while net fundings were affected by unexpected payoff activity. He said the loan pipeline remains strong and management remains confident in its loan growth guidance. Chief Revenue Officer Zach Khuri said the timing of commercial loan growth was largely client-driven and not related to broader macroeconomic concerns. “We did have some unexpected payoffs earlier in the quarter, the pipeline remains strong,” Khuri said. “Our clients continue to seek funding opportunities.” In response to a question from D.A. Davidson analyst Catherine Hubinger about owner-occupied commercial real estate growth, Kalani said there was no single concentrated geography and that activity was within Orrstown’s core markets. On home equity lending, Kalani said the category has been a focus for the company’s teams and saw a “nice uptick” in the quarter, continuing from the prior quarter. Total deposits declined by $7.4 million in the second quarter, though Kalani said management felt good about net deposit activity given seasonal factors in the prior quarter. Non-interest-bearing deposits increased by $39 million during the quarter, which executives highlighted as a positive shift in deposit mix. The company’s loan-to-deposit ratio rose to 89%, which Kalani said remains in a good position to support balance sheet growth. Total deposit costs fell to 1.88% in the second quarter from 1.96% in the first quarter, reflecting earlier pricing actions. Asked about deposit competition, Khuri said he would not identify any particular market or deposit category where competition had intensified. He said Orrstown believes it remains competitive and credited teams for shifting the deposit mix toward non-interest-bearing operating accounts. Orrstown recorded provision expense of $338,000 for the quarter and net charge-offs of about $1.2 million. Kalani said improvements in certain underlying credit metrics led to qualitative factor adjustments in the company’s model, offsetting some of the charge-off impact. The allowance coverage ratio was 1.13% as of June 30, and Kalani said management believes it remains adequately aligned with the loan portfolio’s risk profile. Classified loans have declined for several quarters, and non-accrual loans fell by $6.2 million from the first quarter. Metz said the company remains prudent in lending decisions but believes the credit environment remains sound and is not showing significant signs of stress. Non-interest expense rose by $938,000 in the quarter to $37.7 million, primarily due to salaries and benefits, including annual merit increases and higher healthcare costs. Kalani said he expects expenses to come down slightly in the third quarter because of several one-off items and still expects full-year expenses to fall near the lower end of the company’s previously provided range. Orrstown also redeemed $31 million of subordinated debt on June 30, which reduced its total risk-based capital ratio from the prior quarter. Kalani said the company expects to recover the capital impact of the redemption within two quarters through future earnings generation. Metz said the company remains focused on serving clients, investing in people and technology, maintaining risk discipline and allocating capital to create long-term shareholder value. Orrstown Financial Services, Inc is the bank holding company for Orrstown Bank, a community banking organization headquartered in Shippensburg, Pennsylvania. The roots of Orrstown Bank date back to 1865, and the holding company structure was established to support its growth and diversification. As a regional financial institution, Orrstown Financial Services focuses on delivering personalized banking solutions to individuals, families and businesses across Central Pennsylvania. The company's core offerings include a full suite of deposit products such as checking and savings accounts, money market accounts and certificates of deposit. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Orrstown Financial Services Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Orrstown Financial Services (ORRF) came out with quarterly earnings of $1.09 per share, beating the Zacks Consensus Estimate of $1.03 per share. This compares to earnings of $1.04 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.83%. A quarter ago, it was expected that this holding company for Orrstown Bank would post earnings of $1.06 per share when it actually produced earnings of $1.12, delivering a surprise of +5.66%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Orrstown, which belongs to the Zacks Banks - Northeast industry, posted revenues of $62.67 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 2.08%. This compares to year-ago revenues of $62.43 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Orrstown shares have added about 16.4% since the beginning of the year versus the S&P 500's gain of 8.7%. While Orrstown has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Orrstown was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.08 on $65.9 million in revenues for the coming quarter and $4.29 on $259.85 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Byline Bancorp (BY), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 23. This bank holding company is expected to post quarterly earnings of $0.79 per share in its upcoming report, which represents a year-over-year change of +5.3%. The consensus EPS estimate for the quarter has been revised 0.2% higher over the last 30 days to the current level. Byline Bancorp's revenues are expected to be $115.9 million, up 4.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Orrstown Financial Services Inc (ORRF) : Free Stock Analysis Report Byline Bancorp, Inc. (BY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Net income of $21.2 million, or $1.09 per diluted share, for the three months ended June 30, 2026 compared to net income of $21.8 million, or $1.12 per diluted share, for the three months ended March 31, 2026; Return on average assets was 1.53% and return on average equity was 13.96% for the three months ended June 30, 2026, compared to 1.59% and 14.76%, respectively, for the three months ended March 31, 2026; Subordinated notes of $31.0 million were redeemed on June 30, 2026; the remaining fair value mark of $1.6 million was amortized and reflected in interest expense during the second quarter of 2026; Net interest margin, on a tax equivalent basis, was 3.87% in the second quarter of 2026 compared to 3.90% in the first quarter of 2026; excluding the amortization of the fair value mark on the redeemed subordinated notes, net interest margin was 4.00% (1) in the second quarter of 2026; Total loans increased by $51.7 million, or approximately 5% annualized, from March 31, 2026 to June 30, 2026; classified loans decreased by $8.4 million and nonaccrual loans decreased by $6.2 million during the second quarter of 2026; nonaccrual loans to total loans decreased to 0.58% at June 30, 2026 from 0.74% at March 31, 2026; Noninterest income was $13.8 million for the three months ended June 30, 2026 compared to $15.6 million for the three months ended March 31, 2026 due to $2.4 million in income from life insurance policy death benefits recorded in the first quarter of 2026; The purchase of federal income tax credits resulted in a $1.6 million income tax benefit; Tangible common equity increased to 9.5% of total tangible assets at June 30, 2026 from 9.2% at March 31, 2026; Tangible book value per common share(1) increased to $26.71 at June 30, 2026 from $25.76 at March 31, 2026; and The Board of Directors declared a cash dividend of $0.30 per common share, payable August 11, 2026, to shareholders of record as of August 4, 2026. HARRISBURG, Pa., July 21, 2026 (GLOBE NEWSWIRE) -- Orrstown Financial Services, Inc. (the "Company") (NASDAQ: ORRF), the parent company of Orrstown Bank (the “Bank”), announced earnings for the periods ended June 30, 2026. Net income totaled $21.2 million for the three months ended June 30, 2026, compared to net income of $21.8 million and $19.4 million for the three months ended March 31, 2026 and June 30, 2025, respectively. Diluted earnings per share was $1.09 for the three months ended June 30, 2026, compared to $1.12 and $1.01 for the three months ended March 31, 2026 and June 30, 2025, respectively. For the second quarter of 2025, excluding the impact from merger-related expenses, net of taxes, net income and diluted earnings per share were $20.2 million(1) and $1.04(1), respectively. “Orrstown is pleased to have produced an outstanding quarter in which the strength of our foundation was evident in our key financial metrics,” said Adam L. Metz, President and Chief Executive Officer. "The core net interest margin expanded during the quarter as we continued to effectively manage funding costs. The redemption of the subordinated notes is expected to enhance future performance. We continue to create strong fee income from a variety of sources, highlighted by record quarterly wealth management revenue. We maintain a strong credit risk profile and we expect to continue to build upon our capital ratios at a healthy pace through earnings generation. With a solid balance sheet, diversified revenue streams and strong momentum across the organization, we are well positioned to build on our success in the second half of 2026 and beyond.” (1) Non-GAAP measure. See Appendix A for additional information. DISCUSSION OF RESULTS Balance Sheet Loans Loans held for investment increased by $51.7 million in the three months ended June 30, 2026 and totaled $4.1 billion at both June 30, 2026 and March 31, 2026. Residential mortgages increased by $32.8 million, or approximately 16% annualized, of which $17.1 million were home equities, and commercial loans increased by $18.9 million, or approximately 2% annualized, from March 31, 2026 to June 30, 2026. Investment Securities Investment securities, all of which are classified as available-for-sale, increased by $2.3 million to $949.3 million at June 30, 2026 from $947.0 million at March 31, 2026. During the three months ended June 30, 2026, net unrealized losses on investment securities decreased by $1.8 million. The Bank purchased $28.4 million of investment securities, consisting of $14.6 million of agency mortgage backed securities and collateralized mortgage obligations and $13.8 million of non-agency collateralized mortgage obligations during the second quarter of 2026. The remaining change in investment securities during the second quarter of 2026 was due to paydowns of $28.5 million and a call of $1.0 million, partially offset by net accretion of $1.5 million recorded on investment securities. The overall duration of the Company's investment securities portfolio was 4.5 years at June 30, 2026 compared to 4.7 years at March 31, 2026. See Appendix B for a summary of the Bank's investment securities at June 30, 2026, highlighting their concentrations and credit ratings. Deposits During the second quarter of 2026, deposits decreased by $7.4 million and totaled $4.6 billion at both June 30, 2026 and March 31, 2026. Time deposits, interest-bearing demand deposits and savings deposits decreased by $27.1 million, $24.7 million and $3.1 million, respectively. These decreases were partially offset by increases in non-interest demand deposits of $38.2 million and money market deposits of $9.3 million from March 31, 2026 to June 30, 2026. The Bank continues to focus on shifting its deposit mix to include more lower cost deposits. The Bank's loan-to-deposit ratio was 89% at June 30, 2026 compared to 88% at March 31, 2026. Borrowings On June 30, 2026, the Company redeemed the $31.0 million outstanding 4.50% fixed-to-floating rate subordinated notes assumed from Codorus Valley Bancorp, Inc. on July 1, 2024. At the time of redemption, the subordinated notes had an interest rate of 7.72%. During the three months ended June 30, 2026, the Company amortized the remaining fair value mark of $1.6 million to interest expense as a result of the redemption. The Company actively manages its liquidity position through its various sources of funding to meet the needs of its clients. FHLB advances and other borrowings were $274.8 million at June 30, 2026 compared to $206.7 million at March 31, 2026. The increase was due to higher utilization of borrowings during the second quarter of 2026 primarily to fund loan growth. Despite the quarter-end increase, average FHLB advances and other borrowings decreased by $84.8 million from the three months ended March 31, 2026 to the three months ended June 30, 2026. The Bank seeks to maintain sufficient liquidity to ensure that client needs can be addressed in a timely basis. The Bank had available alternative funding sources, such as FHLB advances and other wholesale options, of $1.8 billion at both June 30, 2026 and March 31, 2026. Income Statement Net Interest Income and Margin Net interest income was $48.8 million for the three months ended June 30, 2026 compared to $49.0 million for the three months ended March 31, 2026. The net interest margin, on a tax equivalent basis, decreased to 3.87% in the second quarter of 2026 from 3.90% in the first quarter of 2026. The decrease is primarily the result of the accelerated amortization of the subordinated notes' fair value mark in the second quarter of 2026. Excluding the amortization of the fair value mark on the redeemed subordinated notes, net interest margin was 4.00% (1) in the second quarter of 2026. A decrease of eight basis points in the cost of interest-bearing deposits during the second quarter of 2026 partially offset the impact of the amortization of the fair value mark from the subordinated note redemption. Interest income on loans, on a tax equivalent basis, increased by $0.3 million to $63.5 million for the three months ended June 30, 2026 compared to $63.2 million for the three months ended March 31, 2026. There was no significant change in the net accretion impact of the purchase accounting marks on loans between the first and second quarters of 2026. Interest income on investment securities, on a tax equivalent basis, was $11.1 million for both the second and first quarters of 2026. Interest income on investments securities benefited from the purchases of higher yielding investment securities despite a $12.1 million decrease in average investment securities during the three months ended June 30, 2026 compared to the three months ended March 31, 2026. The decrease in average investment securities between the periods was due to the timing of purchases and paydowns. Interest expense, on a tax equivalent basis, increased by $0.5 million to $25.9 million for the three months ended June 30, 2026 compared to $25.4 million for the three months ended March 31, 2026. Borrowing costs increased by $0.8 million during the three months ended June 30, 2026 compared to the three months ended March 31, 2026 due to the accelerated amortization of the remaining subordinated debt fair value mark of $1.6 million. The cost of deposits decreased by eight basis points during the three months ended June 30, 2026 compared to the three months ended March 31, 2026. Average interest-bearing deposits increased by $38.3 million during the three months ended June 30, 2026 compared to the three months ended March 31, 2026. Average FHLB advances and other borrowings decreased by $84.8 million from the three months ended March 31, 2026 to the three months ended June 30, 2026. There were seasonal deposit declines in the first quarter of 2026, which increased borrowing balances. However, significant deposit inflow from seasonal sources in the back half of the first quarter enabled the Bank to substantially reduce its borrowing levels. Provision for Credit Losses on Loans The allowance for credit losses ("ACL") on loans decreased to $46.6 million at June 30, 2026 from $47.5 million at March 31, 2026. The ACL to total loans was 1.13% at June 30, 2026 compared to 1.17% at March 31, 2026. The Company recorded provision expense on loans of $0.4 million for the three months ended June 30, 2026 compared to $0.7 million for the three months ended March 31, 2026 partially due to the increase in loans. Net charge-offs were $1.2 million during the three months ended June 30, 2026 compared to $0.9 million during the three months ended March 31, 2026. As a result of improvements noted in underlying criteria, certain qualitative factors were adjusted, which reduced the ACL and partially offset the impact from the increase in loans and net charge-offs. Classified loans decreased by $8.4 million to $49.2 million at June 30, 2026 from $57.6 million at March 31, 2026 due primarily to repayments of $7.8 million. Nonaccrual loans totaled $23.8 million at June 30, 2026 compared to $30.0 million at March 31, 2026. The decrease of $6.2 million in nonaccrual loans was due to repayments of $6.9 million, which included $4.2 million in commercial and land development loans that were on nonaccrual status and risk rated as substandard. Nonaccrual loans to total loans decreased to 0.58% at June 30, 2026 from 0.74% at March 31, 2026. Management believes the ACL to be adequate based on current asset quality metrics and economic forecasts. (1) Non-GAAP measure. See Appendix A for additional information. Noninterest Income Noninterest income decreased by $1.8 million to $13.8 million for the three months ended June 30, 2026 from $15.6 million for the three months ended March 31, 2026. Income from life insurance decreased by $2.4 million to $1.4 million for the three months ended June 30, 2026 compared to $3.8 million for the three months ended March 31, 2026. During the first quarter of 2026, the Company recorded $2.4 million in income from life insurance policy death benefits. Swap fee income decreased by $0.6 million to $0.7 million for the three months ended June 30, 2026 compared to $1.3 million for the three months ended March 31, 2026. Swap fee income will fluctuate based on market conditions and client demand. Wealth management income increased by $0.3 million to $5.9 million for the three months ended June 30, 2026 compared to $5.6 million for the three months ended March 31, 2026. Noninterest Expenses Noninterest expenses increased by $1.0 million to $37.7 million for the three months ended June 30, 2026 from $36.7 million in the three months ended March 31, 2026. Salaries and benefits expense increased by $1.0 million to $22.2 million for the three months ended June 30, 2026 compared to $21.2 million for the three months ended March 31, 2026. The increase during the second quarter of 2026 was due primarily to the impact from merit salary increases in May, higher healthcare costs due to claim volume and the impact of one extra day compared to the prior quarter. Occupancy, furniture and equipment expense decreased by $0.3 million to $3.9 million for the three months ended June 30, 2026 compared to $4.2 million for the three months ended March 31, 2026 due to seasonal expenses incurred during the first quarter of 2026. Advertising and bank promotions expense increased by $0.4 million to $1.1 million in the three months ended June 30, 2026 from $0.7 million in the three months ended March 31, 2026 due to $0.7 million in contributions to tax credit programs during the second quarter of 2026. Taxes other than income decreased by $0.6 million to $0.4 million in the three months ended June 30, 2026 compared to $1.0 million in the three months ended March 31, 2026. This decrease reflects the tax credits recognized in the second quarter of 2026 as result of the charitable contributions. Other operating expenses increased by $0.2 million to $4.3 million for the three months ended June 30, 2026 compared to $4.1 million for the three months ended March 31, 2026. This was due primarily to an increase of $0.2 million in mark-to-market losses on non-hedging derivatives from the first quarter of 2026 to the second quarter of 2026. Income Taxes The Company's effective tax rate was 14.2% for the second quarter of 2026 compared to 20.7% for the first quarter of 2026. The Company's effective tax rate for the three months ended June 30, 2026 is less than the 21% federal statutory rate primarily due to the purchase of federal income tax credits, which reduced income tax expense by $1.6 million. In addition, the effective tax rate was impacted by tax-exempt income, including interest earned on tax-exempt loans and securities and non-taxable income from life insurance policies and tax credits partially offset by the disallowed portion of interest expense against earnings in association with the Bank's tax-exempt investments under the Tax Equity and Fiscal Responsibility Act of 1982 ("TEFRA"). The Company regularly analyzes its projected taxable income and makes adjustments to the provision for income taxes accordingly. Capital Shareholders’ equity totaled $621.7 million at June 30, 2026 compared to $603.2 million at March 31, 2026. The increase of $18.5 million is primarily due to net income of $21.2 million, other comprehensive income of $1.9 million and share-based compensation activity of $1.3 million, partially offset by dividends of $5.9 million. Tangible book value per common share(1) increased to $26.71 at June 30, 2026 from $25.76 at March 31, 2026. The Company's tangible common equity ratio was 9.5% of total tangible assets at June 30, 2026 compared to 9.2% at March 31, 2026. Return on average tangible common equity per common share(1) was 16.86% for the three months ended June 30, 2026 compared to 17.96% for the three months ended March 31, 2026. The decrease in the return on average tangible common equity per common share was primarily due to the increase in average shareholders' equity. (1) Non-GAAP measure. See Appendix A for additional information. Most of the Company's capital ratios increased during the three months ended June 30, 2026 compared to the three months ended March 31, 2026 due to earnings. Total risk-based capital declined over that period due to the redemption of subordinated debt. The Company's tier 1 common equity, tier 1 capital and total risk-based capital ratios were 12.0%, 12.2% and 13.2%, respectively, at June 30, 2026 compared to 11.8%, 12.0% and 13.5%, respectively, at March 31, 2026. The Company's Tier 1 leverage ratio increased to 10.1% at June 30, 2026 compared to 9.7% at March 31, 2026. At June 30, 2026, all four capital ratios applicable to the Company were above regulatory minimum levels to be deemed “well capitalized” under current bank regulatory guidelines. The Company continues to believe that capital is adequate to support the risks inherent in the balance sheet, as well as growth requirements. Investor Relations Contact:Neelesh KalaniExecutive Vice President, Chief Financial OfficerPhone (717) 510-7097 Appendix A- Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations Management believes providing certain other “non-GAAP” financial information will assist investors in their understanding of the effect on recent financial results from non-recurring charges. As a result of acquisitions, the Company has intangible assets consisting of goodwill, core deposit and other intangible assets, which totaled $103.3 million and $107.7 million at June 30, 2026 and December 31, 2025, respectively. During the three and six months ended June 30, 2025, the Company incurred $1.0 million and $2.6 million in merger-related expenses, respectively. The Company did not incur merger-related or other non-recurring expenses during the three months ended June 30, 2026, March 31, 2026, December 31, 2025 and September 30, 2025. On June 30, 2026, the Company redeemed the $31.0 million outstanding 4.50% fixed-to-floating rate subordinated notes assumed from Codorus Valley Bancorp, Inc. on July 1, 2024. During the three and six months ended June 30, 2026, the Company amortized the remaining fair value mark to interest expense as a result of the redemption, which reduced net interest margin. Tangible book value per common share, tangible common equity, and the impact of the accelerated amortization of fair value marks on net interest margin and the efficiency ratio and merger-related expenses on net income and associated ratios, as used by the Company in this earnings release, are determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). While we believe this information is a useful supplement to GAAP based measures presented in this earnings release, readers are cautioned that this non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of our results and financial condition as reported under GAAP, nor are such measures necessarily comparable to non-GAAP performance measures that may be presented by other companies. This supplemental presentation should not be construed as an inference that our future results will be unaffected by similar adjustments to be determined in accordance with GAAP. The following tables present the computation of each non-GAAP based measure: (In thousands) Appendix B- Investment Portfolio Concentrations The following table summarizes the credit ratings and collateral associated with the Company's investment security portfolio, excluding equity securities, at June 30, 2026: (In thousands) About the Company With $5.6 billion in assets, Orrstown Financial Services, Inc. and its wholly-owned subsidiary, Orrstown Bank, provide a wide range of consumer and business financial services in Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry and York Counties, Pennsylvania and Anne Arundel, Baltimore, Harford, Howard, and Washington Counties, Maryland, as well as Baltimore City, Maryland. The Company’s lending area also includes counties in Pennsylvania, Maryland, Delaware, Virginia and West Virginia within a 75-mile radius of the Company's executive and administrative offices as well as the District of Columbia. Orrstown Bank is an Equal Housing Lender and its deposits are insured up to the legal maximum by the FDIC. Orrstown Financial Services, Inc.’s common stock is traded on Nasdaq (ORRF). For more information about Orrstown Financial Services, Inc. and Orrstown Bank, visit www.orrstown.com. Cautionary Note Regarding Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements reflect the current views of the Company's management with respect to, among other things, future events and the Company's financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates, predictions or projections about events or the Company's industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company's control. Accordingly, the Company cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements and there can be no assurances that the Company will achieve the desired level of new business development and new loans, growth in the balance sheet and fee-based revenue lines of business, cost savings initiatives and continued reductions in risk assets or mitigation of losses in the future. Factors which could cause the actual results to differ from those expressed or implied by the forward-looking statements include, but are not limited to, the following: interest rate changes or volatility; general economic conditions (including inflation and concerns about liquidity) on a national basis or in the local markets in which the Company operates; ineffectiveness of the Company’s strategic growth plan due to changes in current or future market conditions; the effects of competition and how it may impact our community banking model, including industry consolidation and development of competing financial products and services; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in, and evolving interpretations of, existing and future laws and regulations; changes in credit quality; inability to raise capital, if necessary, under favorable conditions; volatility in the securities markets; the demand for our products and services; deteriorating economic conditions; geopolitical tensions; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters and future pandemics; expenses associated with litigation and legal proceedings; and other risks and uncertainties, including those detailed in our Annual Report on Form 10-K for the year ended December 31, 2025 under the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in subsequent filings made with the Securities and Exchange Commission. The foregoing list of factors is not exhaustive. If one or more events related to these or other risks or uncertainties materializes, or if the Company's underlying assumptions prove to be incorrect, actual results may differ materially from what the Company anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and the Company disclaims any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New risks and uncertainties arise from time to time, and it is not possible for the Company to predict those events or how they may affect it. In addition, the Company cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that the Company or persons acting on the Company's behalf may issue. The review period for subsequent events extends up to and includes the filing date of a public company’s financial statements, when filed with the Securities and Exchange Commission. Accordingly, the consolidated financial information presented in this announcement is subject to change. Annualized, pro forma, projected and estimated numbers in this document are used for illustrative purposes only and are not forecasts and may not reflect actual results.

Wall Street expects a year-over-year decline in earnings on higher revenues when Fulton Financial (FULT) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on July 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This financial holding company is expected to post quarterly earnings of $0.53 per share in its upcoming report, which represents a year-over-year change of -3.6%. Revenues are expected to be $361.54 million, up 10.1% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.59% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Fulton Financial, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.42%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Fulton Financial will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Fulton Financial would post earnings of $0.5 per share when it actually produced earnings of $0.55, delivering a surprise of +10.00%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Fulton Financial doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Banks - Northeast industry, Orrstown Financial Services (ORRF), is soon expected to post earnings of $1.03 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -1%. Revenues for the quarter are expected to be $64 million, up 2.5% from the year-ago quarter. The consensus EPS estimate for Orrstown has been revised 1.4% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.65%. When combined with a Zacks Rank of #2 (Buy), this Earnings ESP makes it difficult to conclusively predict that Orrstown will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fulton Financial Corporation (FULT) : Free Stock Analysis Report Orrstown Financial Services Inc (ORRF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Orrstown Financial Services (ORRF) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 21. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This holding company for Orrstown Bank is expected to post quarterly earnings of $1.03 per share in its upcoming report, which represents a year-over-year change of -1%. Revenues are expected to be $64 million, up 2.5% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.38% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Orrstown, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.65%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that Orrstown will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Orrstown would post earnings of $1.06 per share when it actually produced earnings of $1.12, delivering a surprise of +5.66%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Orrstown doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Banks - Northeast industry, Citizens Financial Group (CFG), is soon expected to post earnings of $1.25 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +35.9%. Revenues for the quarter are expected to be $2.24 billion, up 9.9% from the year-ago quarter. The consensus EPS estimate for Citizens Financial Group has been revised 0.4% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.10%. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Citizens Financial Group will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Orrstown Financial Services Inc (ORRF) : Free Stock Analysis Report Citizens Financial Group, Inc. (CFG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Unity Bancorp (UNTY) came out with quarterly earnings of $1.42 per share, missing the Zacks Consensus Estimate of $1.44 per share. This compares to earnings of $1.2 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.39%. A quarter ago, it was expected that this bank holding company would post earnings of $1.37 per share when it actually produced earnings of $1.4, delivering a surprise of +2.19%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Unity Bancorp, which belongs to the Zacks Banks - Northeast industry, posted revenues of $33.75 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.01%. This compares to year-ago revenues of $34.37 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Unity Bancorp shares have added about 10.9% since the beginning of the year versus the S&P 500's gain of 9.8%. While Unity Bancorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Unity Bancorp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.48 on $36.08 million in revenues for the coming quarter and $5.84 on $141.05 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Orrstown Financial Services (ORRF), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 21. This holding company for Orrstown Bank is expected to post quarterly earnings of $1.03 per share in its upcoming report, which represents a year-over-year change of -1%. The consensus EPS estimate for the quarter has been revised 1.4% lower over the last 30 days to the current level. Orrstown Financial Services' revenues are expected to be $64 million, up 2.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Unity Bancorp, Inc. (UNTY) : Free Stock Analysis Report Orrstown Financial Services Inc (ORRF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research