Company Overview: Orrstown Financial Services, Inc.

Business Description:
Orrstown Financial Services, Inc. is a Pennsylvania-based financial holding company that operates primarily through its wholly-owned subsidiary, Orrstown Bank. The company provides a broad range of banking and financial services in the mid-Atlantic region.

Core Operations and Services:

• Banking Activities:

  • Commercial banking, including real estate, equipment, construction, working capital, municipal, and consumer loans.
  • Deposit services such as checking, savings, time deposits, and money market accounts.
  • Fiduciary, investment advisory, insurance, and brokerage services offered through Orrstown Financial Advisors (OFA).

• Lending Areas:

  • Primarily in south central Pennsylvania (Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry, York) and Maryland (Anne Arundel, Baltimore, Harford, Howard, Washington, Baltimore City).
  • Lending area extends up to a 75-mile radius in Pennsylvania, Maryland, Delaware, Virginia, West Virginia, and District of Columbia.

• Customer Base and Employees:

  • As of December 31, 2024, the Bank had 607 full-time employees and 23 part-time employees.
  • Approximately 70% of workforce is female and 30% male.
  • The parent company has no employees; its management is composed of 15 officers who are also Bank employees, with an average tenure of 12 years.

• Assets and Financial Size:

  • Total assets: $5.4 billion (as of December 31, 2024).
  • Total deposits: $4.6 billion.
  • Shareholders’ equity: $516.7 million.

• Revenue and Income (2024):

  • Net income: $22.1 million (including $22.7 million in merger-related expenses, legal settlement reserve, restructuring costs, and reserve on acquired non-PCI loans).
  • Excluding non-recurring expenses, net income was $56.1 million with diluted EPS of $3.76.
  • Net interest income: $155.3 million.
  • Total noninterest income: $37.4 million, driven by wealth management, service charges, interchange income, mortgage activities, and securities gains.

Recent Highlights:

• The company merged with Codorus Valley Bancorp, Inc. on July 1, 2024, expanding into the York, PA market and increasing market penetration.
• The merger transaction was valued at $233.4 million.
• The Bank operates 38 full-service branches and 7 limited purpose branches after closing six branches in November 2024.

Summary:
Orrstown Financial Services, Inc. is a regional full-service bank holding company with a significant presence in Pennsylvania and Maryland. It offers comprehensive banking, lending, fiduciary, and investment services to a diverse client base, supported by over 600 employees. The company expanded notably through a major merger in 2024, boosting assets, deposits, and market reach, with a focus on commercial and consumer banking, wealth management, and community-oriented financial services.