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Orrstown Financial Services, Inc. reports developments tied to its role as the financial holding company for Orrstown Bank, including quarterly earnings, loan and deposit trends, net interest margin, credit quality, liquidity, borrowings, capital ratios and common-stock dividends. The company’s community banking business includes commercial, residential mortgage, construction, municipal and consumer lending, along with checking, savings, time and money market deposits.
Company updates also cover noninterest income, operating expense management, branch and client-service activity, and the wealth management, fiduciary, investment advisory, insurance and brokerage services offered through Orrstown Financial Advisors and related bank channels. Recurring announcements include earnings-call schedules, regional commercial banking hires and office openings within its Pennsylvania banking footprint.
Orrstown Financial Services reported a net income of $32.9 million and diluted EPS of $2.96 for 2021, up from $26.5 million and $2.40 in 2020. Q4 2021 net income was $6.7 million with diluted EPS of $0.60, down from $0.91 in Q4 2020. Commercial loans grew 34% annualized in Q4 2021, with a total increase of $268.3 million or 24% for the year. Net interest margin improved to 3.35% as excess liquidity was redeployed. The Board declared a dividend of $0.19 per share payable on February 8, 2022.
Orrstown Financial Services, Inc. reported a net income of $7.2 million for Q3 2021, resulting in a diluted EPS of $0.65, up from $0.45 in Q3 2020. Total commercial loan growth, excluding SBA PPP loans, was $98.2 million, representing a 33% annualized increase. Noninterest income rose to $7.7 million, boosted by asset-backed securities sales. Tangible book value per share increased to $21.98.
However, net interest income decreased by $1.3 million to $20.6 million, and the net interest margin fell to 3.03%. Noninterest expenses also rose to $19.0 million.
Orrstown Financial Services reported a net income of $8.8 million for the second quarter of 2021, compared to $10.2 million in Q1 2021 and $6.4 million in Q2 2020. The diluted earnings per share were $0.79, down from $0.92 in Q1 2021. The Board declared a cash dividend of $0.19 per share, payable on August 9, 2021, up from $0.18. Commercial loan growth was strong, at an annualized rate of 24%. However, net interest margin decreased to 3.24% due to excess liquidity from PPP forgiveness.
Orrstown Financial Services reported a net income of $10.2 million for Q1 2021, slightly up from $10.1 million in Q4 2020. Diluted EPS rose to $0.92, compared to $0.91 in the previous quarter. The tangible book value per share increased to $20.59, reflecting a 25% year-over-year growth. The company authorized the repurchase of 562,000 shares, totaling 7% of outstanding shares. Despite challenges in loan demand, deposits surged by 32% to $2.5 billion, aided by government stimulus. A dividend of $0.18 per share was declared, consistent with previous quarters.
Orrstown Financial Services, Inc. (NASDAQ: ORRF) announced the retirement of Chief Financial Officer Thomas R. Brugger, effective April 27, 2021. Neelesh Kalani, previously the Chief Accounting Officer, will be promoted to CFO as of April 28, 2021. Kalani brings over 20 years of experience in banking and finance, including his time at Sun Bancorp, Inc. and KPMG, LLP. The transition aims to maintain financial stability and compliance within the company, according to CEO Thomas R. Quinn, Jr.
Orrstown Financial Services reported strong financial results for Q4 2020, with net income of $10.1 million, up from $5.0 million in Q3 2020, resulting in diluted EPS of $0.91. The company’s tangible book value increased to $19.93, a 12.9% annual rise. Net interest income grew to $23.7 million, driven by an expanded margin of 3.73%. Deposit growth was robust, totaling $77.4 million, or 13.6% annualized. However, the company faces challenges ahead, including lower loan demand and a possible rise in charge-offs due to ongoing economic uncertainty from COVID-19.
Orrstown Financial Services reported a diluted EPS of $0.45 for Q3 2020, down from $0.58 in Q2 2020, with net income of $5.0 million, a decline from $6.4 million in the previous quarter. The tangible book value per share rose to $18.70, reflecting strategic branch consolidations expected to save $4 million annually. The bank's net interest margin was resilient at 3.24%, despite a $2.2 million provision for loan losses amid COVID-19 impacts. Asset quality remains solid, with a decrease in COVID-19 related loan deferrals. A cash dividend of $0.17 per share was declared, payable on November 9, 2020.
Orrstown Financial Services, Inc. announced measures to adapt to COVID-19, including consolidating six branches and reducing back office space. These steps aim to save approximately $4 million annually, with a one-time charge of $1.5 million expected in Q3 2020. The company also plans to enhance its digital services amid shifting consumer behaviors. Asset quality remains a concern with COVID-19-related loan deferrals actively monitored. The consolidation will lead to an 8% reduction in employee count and a decrease in operational complexity, driven by prior technology investments.
Orrstown Financial Services reported a net income of $6.4 million for Q2 2020, up from $5.1 million in Q1 2020 and $2.7 million in Q2 2019. The company originated approximately $460 million in SBA PPP loans, benefiting from the low interest rate environment. Noninterest income also rose to $7.2 million. The Board declared a cash dividend of $0.17 per share, payable August 10, 2020. However, they increased loan loss provisions by $1.9 million due to economic uncertainty, anticipating future charge-offs amidst the ongoing challenges posed by COVID-19.
Orrstown Financial Services, Inc. (NASDAQ: ORRF) has elected Linford Weaver to its Board of Directors effective June 1, 2020. Weaver, Co-President of the Shady Maple Companies, brings extensive leadership experience, particularly in financial analysis, risk management, and marketing. He is known for expanding the Shady Maple Farmers Market and Smorgasbord. This appointment is expected to bolster Orrstown's operations in the rapidly-growing eastern Pennsylvania market. Alongside this change, Robert DeAlmeida has resigned from the boards to pursue other interests.