Shippensburg, PA (April 22, 2010) – Orrstown Financial Services, Inc. (NASDAQ: ORRF) is pleased to announce net operating results for the first quarter ended March 31, 2010.
Highlights for Orrstown Financial Services, Inc.:
Net income of $3,406,000 for the first quarter of 2010, an increase of 12.6% vs. first quarter of 2009
Net interest income improved by 30.9% vs. first quarter of 2009
Net interest margin improved by 36 basis points vs. first quarter of 2009
Primary earnings per share increased 10.6% vs. first quarter of 2009
Loans increased 8.5% and deposits increased 27.6% vs. first quarter of 2009
For the first quarter of 2010, Orrstown Financial Services, Inc. improved net income by $381,000, an increase of 12.6% vs. the same quarter last year. As a result of the Company’s continued growth, net interest income for the first quarter of 2010 was $10,497,000; an increase of $2,475,000 over the $8,022,000 realized during the same quarter in 2009. Non-interest income showed an increase of 12.7%, while non-interest expenses rose 14.4%. During the first quarter of 2010, core earnings solidified as the net interest margin increased to 3.76%, a gain of 36 basis points vs. the same quarter in 2009. Balance sheet growth of 21.4% over last year resulted in total assets reaching $1.316 billion as of March 31, 2010.
Commenting on the quarterly performance, Thomas R. Quinn, Jr., President and Chief Executive Officer, stated, “Our core fundamentals remain solid and we were pleased with our first quarter results given the challenging economic conditions.” In March, Orrstown Financial Services, Inc. completed a common stock offering that netted approximately $37.5 million in additional capital positioning the Company to take advantage of future opportunities, and ensuring that its capital ratios remain strong. Mr. Quinn continued, “Our common stock offering was well received by the investment community and was one of the strongest capital raises by a financial institution this year in terms of price to book value.”
The Board of Directors approved a second quarter cash dividend of $.22 per share for shareholders of record on May 7, 2010. The dividend will be paid on May 19, 2010.
Please view the full press release on our website: http://www.snl.com/IRWebLinkX/news.aspx?iid=100631
With over $1.3 billion in assets, Orrstown Financial Services, Inc. and its subsidiary, Orrstown Bank, provide a full range of consumer and business financial services through twenty one banking offices and two remote service facilities located in Cumberland, Franklin and Perry Counties, Pennsylvania and Washington County, Maryland. Orrstown Financial Services, Inc.’s stock is quoted on the NASDAQ Capital Market under the symbol ORRF.
Safe Harbor Statement: This news release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various risks, uncertainties and other factors. Such risks, uncertainties and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: ineffectiveness of the Company's business strategy due to changes in current or future market conditions; the effects of competition, and of changes in laws and regulations, including industry consolidation and development of competing financial products and services; interest rate movements; changes in credit quality; volatilities in the securities markets; and deteriorating economic conditions, and other risks and uncertainties, including those detailed in Orrstown Financial Services, Inc.'s filings with the Securities and Exchange Commission. The statements are valid only as of the date hereof and Orrstown Financial Services, Inc. disclaims any obligation to update this information.