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Orrstown Financial Services
(NASDAQ:ORRF)
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Rating:75Outperform
Price Target:
$47.00
▲(12.39% Upside)
Action:Reiterated
Date:10/21/26
ORRF scores well primarily on strong financial performance (TTM profitability, revenue growth, and high-quality free cash flow) and an attractive valuation (low P/E and solid dividend). The earnings call reinforces the constructive outlook with NIM expansion and continued loan growth, but funding/capital pressures (borrowings reliance, tangible capital hit from unrealized losses) and only mixed technical momentum keep the score from being higher.
Positive Factors
Margin Expansion
The higher net interest margin and multi-year outlook indicate improving earning power from the core banking franchise. If management sustains this spread while controlling deposit costs, net interest income should remain a durable support for profitability over the next several quarters.
Negative Factors
Funding Reliance
Funding loan growth with more borrowings makes profitability more sensitive to funding costs and deposit competition. A 92% loan-to-deposit ratio leaves less balance-sheet flexibility if deposits remain difficult to attract, potentially narrowing margins or slowing asset growth over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion
The higher net interest margin and multi-year outlook indicate improving earning power from the core banking franchise. If management sustains this spread while controlling deposit costs, net interest income should remain a durable support for profitability over the next several quarters.
Read all positive factors
Orrstown Financial Services (ORRF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$871.17M
Dividend Yield2.64%
Average Volume (3M)100.20K
Price to Earnings (P/E)9.4
Beta (1Y)0.80
Revenue Growth1.02%
EPS Growth18.66%
CountryUS
Employees627
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)4.66
Shares Outstanding19,669,626
10 Day Avg. Volume94,784
30 Day Avg. Volume100,196
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)1.00
Price to Sales (P/S)1.67
P/FCF Ratio8.36
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue3.26
Enterprise Value/Gross Profit4.59
Enterprise Value/Ebitda9.59
Forecast
1Y Price Target
$48.00Price Target Upside14.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)4.44
Revenue Forecast (FY)$262.34M
Orrstown Financial Services Business Overview & Revenue Model
Company Description
Orrstown Financial Services, Inc. serves as the parent company for Orrstown Bank, offering a comprehensive range of commercial banking and trust solutions throughout the United States. The institution accepts various types of deposits, including c...
How the Company Makes Money
Orrstown Financial Services primarily earns money through its banking operations. The largest revenue driver for a community bank is typically net interest income: the bank collects interest and fees on loans and interest-earning assets (such as c...
Orrstown Financial Services Earnings Call Summary
Earnings Call Date:Oct 20, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 20, 2027
Earnings Call Sentiment Positive
The call was strongly positive, supported by record or improved earnings metrics, expanding net interest margin, robust loan growth, improved efficiency, sound credit quality, deposit-cost progress, and external growth recognition. The main challenges were reliance on borrowings amid deposit outflows, sequentially lower fee income, investment-portfolio unrealized losses that reduced tangible common equity, competitive deposit pricing, and uncertainty around economic conditions and future loan growth. Highlights significantly outweighed the lowlights.Positive Updates
Strong Quarterly Earnings and Returns
Net income was $22.8 million, or $1.17 per diluted share. Return on average assets was 1.60% and return on average equity was 14.62%; both increased quarter-to-quarter and continued to exceed peer multiples.
Negative Updates
Deposit Outflows Increased Borrowing Reliance
Significant loan growth combined with net deposit outflows, some of which were seasonal, required increased reliance on borrowings. The loan-to-deposit ratio increased to 92% as borrowings were used to fund loan growth, although available alternative funding sources remained strong at $1.7 billion.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Quarterly Earnings and Returns
Net income was $22.8 million, or $1.17 per diluted share. Return on average assets was 1.60% and return on average equity was 14.62%; both increased quarter-to-quarter and continued to exceed peer multiples.
Read all positive updates
Company Guidance
Management projected net interest margin through the end of 2027 in the range of 4.05%-4.15%, annualized fee income into 2027 in the range of $54 million-$56 million, and an annualized expense run rate between $153 million and $157 million; the loan growth goal remains in the mid-single digits going forward, with growth potentially being on the lower end of the mid-single digit range, while the team believes it can potentially do higher than the 5% target. The modeling assumes another two increases over the course of the next year, at 25 bps each; 4Q expenses are expected to be somewhat consistent with third quarter and then slowly build up. Core NIM is expected to increase, and every 25 basis point rate increase is expected to produce about a $500,000 impact for every 25 on a ramp basis, equating to about five basis points for every quarter for the margin. Deposit beta is expected to be higher than 25 basis points, and the company is comfortable with near-term reliance on time deposits, money markets, and wholesale deposits.Orrstown Financial Services Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 358.74M | 353.86M | 284.09M | 174.30M | 134.32M | 121.64M |
| Gross Profit | 254.56M | 249.97M | 173.86M | 127.62M | 121.11M | 113.83M |
| EBITDA | 121.81M | 117.98M | 37.50M | 49.37M | 31.24M | 46.20M |
| Net Income | 86.32M | 80.86M | 22.05M | 35.66M | 22.04M | 32.88M |
Balance Sheet | ||||||
| Total Assets | 5.61B | 5.54B | 5.44B | 3.06B | 2.92B | 2.83B |
| Cash, Cash Equivalents and Short-Term Investments | 1.01B | 994.82M | 1.08B | 578.68M | 574.55M | 681.15M |
| Total Debt | 282.36M | 336.37M | 209.91M | 179.38M | 155.42M | 57.16M |
| Total Liabilities | 4.99B | 4.95B | 4.92B | 2.80B | 2.69B | 2.56B |
| Stockholders Equity | 621.65M | 591.53M | 516.68M | 265.06M | 228.90M | 271.66M |
Cash Flow | ||||||
| Free Cash Flow | 85.69M | 70.50M | 33.38M | 41.41M | 35.30M | 39.56M |
| Operating Cash Flow | 87.79M | 74.73M | 34.96M | 43.70M | 36.19M | 40.81M |
| Investing Cash Flow | -224.05M | -181.96M | 60.99M | -153.25M | -270.99M | -2.01M |
| Financing Cash Flow | 131.72M | 8.13M | 87.76M | 113.89M | 86.91M | 44.65M |
Orrstown Financial Services Technical Analysis
Positive
41.82
Price Trends
41.96
Positive
41.31
Positive
38.69
Positive
Market Momentum
0.41
Negative
69.68
Neutral
97.36
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORRF, the sentiment is Positive. The current price of 41.82 is above the 20-day moving average (MA) of 41.65, below the 50-day MA of 41.96, and above the 200-day MA of 38.69, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 69.68 is Neutral, neither overbought nor oversold. The STOCH value of 97.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ORRF.
Orrstown Financial Services Risk Analysis
Orrstown Financial Services disclosed 48 risk factors in its most recent earnings report. Orrstown Financial Services reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Orrstown Financial Services Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $406.77M | 9.88 | 12.05% | 2.39% | 3.23% | 29.90% | |
75 Outperform | $871.17M | 9.42 | 14.42% | 2.64% | 1.02% | 18.66% | |
74 Outperform | $1.16B | 12.07 | 10.41% | 2.14% | 2.41% | 26.67% | |
73 Outperform | $868.23M | 11.38 | 8.15% | 2.74% | 18.49% | 19.19% | |
72 Outperform | $665.32M | 12.09 | 13.13% | 3.21% | 14.85% | 64.71% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $799.68M | 9.92 | 13.09% | 3.13% | 46.45% | ― |
* Financial Sector Average
ORRF
Orrstown Financial Services
44.29
11.15
33.65%
ACNB
ACNB
65.42
22.56
52.63%
FISI
Financial Institutions
40.58
12.18
42.91%
MPB
Mid Penn Bancorp
34.26
5.48
19.05%
UVSP
Univest Of Pennsylvania
42.14
12.62
42.73%
CZFS
Citizens Financial Services
84.57
30.86
57.47%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.