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Orrstown Financial Services
(NASDAQ:ORRF)
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Rating:81Outperform
Price Target:
$50.00
â–²(17.48% Upside)
Action:Reiterated
Date:08/07/26
ORRF scores well primarily on strong current financial performance (especially cash flow strength and healthy profitability) and supportive earnings-call guidance around net interest margin and continued capital generation. Valuation is attractive (low P/E with a solid dividend), while technicals are constructive but show some risk of short-term overbought conditions.
Positive Factors
Cash generation
Near‑par free cash flow to net income and strong TTM operating and free cash flow indicate durable internal funding. This supports dividends, capital build, and organic loan growth while providing a buffer for credit stress, underpinning financial flexibility over the medium term.
Negative Factors
Earnings volatility
Historical swings in profitability show earnings sensitivity to rate and credit cycles. Such variability can strain capital planning and reserve needs, making sustained ROE and dividend coverage less certain during adverse macro or credit conditions over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Near‑par free cash flow to net income and strong TTM operating and free cash flow indicate durable internal funding. This supports dividends, capital build, and organic loan growth while providing a buffer for credit stress, underpinning financial flexibility over the medium term.
Read all positive factors
Orrstown Financial Services (ORRF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$838.32M
Dividend Yield2.75%
Average Volume (3M)199.58K
Price to Earnings (P/E)9.1
Beta (1Y)0.85
Revenue Growth-0.52%
EPS Growth98.41%
CountryUS
Employees627
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)4.66
Shares Outstanding19,669,626
10 Day Avg. Volume140,139
30 Day Avg. Volume199,582
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$44.50Price Target Upside4.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)4.28
Revenue Forecast (FY)$260.18M
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 makes money through its banking operations. The largest earnings driver is typically net interest income: the company earns interest and fees on loans and other interest-earning assets (e.g., commercial and co...
Orrstown Financial Services Earnings Call Summary
Earnings Call Date:Jul 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call portrayed a strong quarter with robust profitability, expanded adjusted net interest margin, record wealth management results, healthy loan production, improved deposit mix, and improving credit metrics. Weaknesses were largely one-time or timing-related — notably the subordinated debt redemption charge that lowered reported NIM and a modest rise in expenses and net charge-offs. Management expressed confidence in recovering capital impact quickly, maintaining dividend, and achieving full-year guidance, indicating a positive forward view.Positive Updates
Strong Quarterly Profitability
Net income of $21.2 million and diluted EPS of $1.09 for Q2 2026; return on average assets (ROAA) of 1.53% and return on average equity (ROAE) of 13.96%, both described as exceeding peer multiples.
Negative Updates
One-Time Redemption Charge and Capital Impact
Redeemed $31 million of subordinated debt at June 30, 2026, resulting in a one-time $1.6 million charge to interest expense and a decline in the total risk-based capital ratio (management expects recovery within two quarters).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly Profitability
Net income of $21.2 million and diluted EPS of $1.09 for Q2 2026; return on average assets (ROAA) of 1.53% and return on average equity (ROAE) of 13.96%, both described as exceeding peer multiples.
Read all positive updates
Company Guidance
The company reiterated full‑year net interest margin guidance of 3.90%–4.00% (excluding a onetime $1.6M subordinated‑debt redemption charge), noting Q2 reported NIM was 3.87% and adjusted NIM 4.00% and that it expects to finish toward the higher end of that range; management also said spot/back‑half margin is around 4% and that the balance sheet is slightly asset‑sensitive to neutral if rates move. Other guidance items: noninterest income is expected to be roughly in the Q2 range going forward (Q2 fee income $13.8M, 22.1% of operating income; wealth management $5.9M; swap fees ~$700K); noninterest expense is expected to trend toward the lower end of the prior full‑year guidance after Q2’s $37.7M (+$0.94M) result; and the capital impact of redeeming $31M of subordinated debt should be recovered within two quarters as earnings (Q2 net income $21.2M, EPS $1.09; ROAA 1.53%; ROAE 13.96%) continue to generate capital.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 | 117.03M | 116.68M | 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 | 60.58M | 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 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $838.32M | 9.12 | 14.46% | 2.68% | -0.52% | 98.41% | |
76 Outperform | $1.13B | 13.57 | 15.92% | 1.92% | 18.89% | 38.49% | |
75 Outperform | $976.48M | 10.95 | 12.62% | 3.08% | 12.80% | 65.27% | |
74 Outperform | $969.07M | 11.33 | 13.02% | 2.83% | 8.25% | 36.33% | |
72 Outperform | $937.13M | 14.95 | 7.21% | 1.25% | 28.35% | 14.41% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $878.54M | 13.28 | 10.58% | 2.17% | -8.87% | 3.26% |
* Financial Sector Average
ORRF
Orrstown Financial Services
42.52
11.34
36.37%
CAC
Camden National
57.38
21.01
57.78%
THFF
First Financial Indiana
80.93
29.33
56.85%
GSBC
Great Southern Bancorp
80.23
24.42
43.76%
FSBC
Five Star
46.01
17.01
58.64%
NBBK
NB Bancorp, Inc.
22.58
5.42
31.62%
Orrstown Financial Services Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Orrstown Discloses Vendor Cyber Incident Affecting Customer Data
Neutral
May 29, 2026
Orrstown Financial Services, Inc. plans to redeem on June 30, 2026 its $31 million of 4.5% fixed-to-floating rate subordinated notes due 2030, assumed in its July 1, 2024 merger with Codorus Valley Bancorp, at par plus accrued interest, retiring h...
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.