AI-extracted from the 10-Q filed 2026-08-06 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Net income of $21.2M (+9% YoY) on stable net interest income of $48.8M amid 23bp margin compression from rate cuts; provision expense of $338K reflects modest credit deterioration.
Biggest Revenue Drivers
Net interest income$48.8M-1.4% YoY
Decrease due to Fed rate cuts in Q4 2025 reducing yields on earning assets by 23bp, partially offset by 13bp decline in deposit costs.
Noninterest income$13.8M+7.1% YoY
Increase driven by higher interchange income (+11.2%), trust and investment management income (+14.0%), and brokerage income (+10.6%).
Biggest Revenue Drivers
Net interest income$48.8M-1.4% YoY
Decrease due to Fed rate cuts in Q4 2025 reducing yields on earning assets by 23bp, partially offset by 13bp decline in deposit costs.
Noninterest income$13.8M+7.1% YoY
Increase driven by higher interchange income (+11.2%), trust and investment management income (+14.0%), and brokerage income (+10.6%).
Largest Expense Items
Salaries and employee benefits$22.2M+4.0% YoY
Increase due to staff additions filling vacancies and merit salary increases effective May 2026.
Data processing$1.7M+76.5% YoY
Increase reflects technology investments to address evolving client needs.
Professional services$1.2M-40.4% YoY
Decrease due to reduced use of consultants and third-party service providers.
Intangible asset amortization$2.2M-11.9% YoY
Amortization of core deposit and customer relationship intangibles acquired in July 2024 Codorus Valley merger.
Margins: Net interest margin compressed 20bp to 3.87% from 4.07% YoY, primarily due to Fed rate cuts reducing asset yields, partially offset by 13bp decline in deposit costs. Excluding accelerated $1.6M amortization from June 2026 subordinated note redemption, adjusted margin was 4.00%.
Watch Items from the Filing
Nonaccrual loans of $23.8M (0.58% of total loans) decreased from $28.0M (0.70%) at year-end 2025, but nonperforming assets remain elevated; commercial real estate concentration is significant within loan portfolio.
Three putative class action lawsuits filed June-July 2026 alleging negligence and breach of contract related to Mercadien CPA cybersecurity breach affecting customer data; Company has insufficient information to estimate loss at this time.
Company redeemed $31.0M subordinated notes on June 30, 2026, accelerating $1.6M fair value mark amortization; total subordinated debt now only $8.0M (junior trust preferred), reducing Tier 2 capital cushion.
Provision for credit losses of $338K driven by $92.3M loan growth; ACL to total loans ratio of 1.13% slightly below prior year 1.19%, with qualitative risk factors moderately adjusted for geopolitical uncertainty.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Fainor Scott VDirectorGrant or award · May 5, 2026
Keller Mark KDirectorGrant or award · May 5, 2026
Snoke Glenn WDirectorGrant or award · May 5, 2026
Giambalvo John WDirectorGrant or award · May 5, 2026
About ORRSTOWN FINANCIAL SERVICES INC (ORRF): stock profile, AI score and financials
ORRSTOWN FINANCIAL SERVICES INC (ORRF) stock profile, AI quality score, and SEC EDGAR financial data, a Financials sector company. 13F Pro's AI-powered ranking engine scores ORRF at 63.3/100 on a composite quality score built from its SEC filings, placing it at rank #630 of 2,925 stocks — the top 25% of the AI-ranked universe. ORRF scores in the top quartile across profitability (94.3), revenue growth (91.8), free cash flow (87.3). Areas of concern include institutional flow (16.3) and revenue scale (27.3), which score below median versus the broader universe. Shareholder dilution risk is elevated at 12.5/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), ORRSTOWN FINANCIAL SERVICES INC reports quarterly revenue of $62.7M, net income of $21.2M, an operating margin of 39.4%. ORRF trades on the Nasdaq exchange and files with the SEC under CIK 826154. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate ORRF daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for ORRSTOWN FINANCIAL SERVICES INC directly from SEC EDGAR.