The EPS beat is largely tax-driven and non-recurring (federal tax credit), while core NIM continues to compress. Watch for NIM stabilization in H2 as deposit costs decline and sub debt savings flow through. The sharp credit improvement and capital build are supportive, but revenue trajectory remains the key swing factor.
Price Chart
Executive Summary
Orrstown Financial Services reported Q2 2026 diluted EPS of $1.09, beating consensus of $1.03 by 5.8%, but net interest income of $48.8M missed the $50.7M estimate. Credit quality improved sharply (nonaccrual loans fell to 0.58% from 0.74%), and the company redeemed $31M in high-cost subordinated notes, which will reduce future interest expense. The mixed results—EPS beat on tax benefits and fee income, but core NIM compression and revenue miss—point to a neutral-to-slightly-positive read for the stock.
Key Financial Metrics
Key Facts
- Diluted EPS $1.09 vs consensus $1.03 (beat 5.8%)
- Net interest income $48.8M vs consensus $50.7M (miss 3.7%)
- Net interest margin (GAAP) 3.87%, down from 3.90% QoQ and 4.07% YoY
- Nonaccrual loans/total loans improved to 0.58% from 0.74% QoQ
- Classified loans fell $8.4M to $49.2M
- Redeemed $31.0M subordinated notes (7.72% rate), reducing future interest expense
- Tangible book value per share rose to $26.71 from $25.76 QoQ
- Dividend maintained at $0.30/share
Financial Impact
EPS beat of ~$0.06 vs consensus, but net interest income shortfall of ~$1.9M; sub debt redemption saves ~$2.4M/year in interest
Risk Factors
- Net interest margin compression if deposit costs don't decline further
- Loan growth may pressure capital ratios despite improvement
- One-time tax benefit not repeatable
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-049110 |
| Document: orrf-20260721.htm | 0001628280-26-049110 |
| Document: 0001628280-26-049110-index-headers.html | 0001628280-26-049110 |
| Document: 0001628280-26-049110-index.html | 0001628280-26-049110 |
| Document: 0001628280-26-049110.txt | 0001628280-26-049110 |
| 8-K Data (Synthetic) | 0001628280-26-049110 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 6d ago | 8-K | $42.89 | awaiting T+60 | — | $44.55 (+3.87%) |
Oct 20, 2026 6d ago | Press Release | $42.89 | awaiting T+60 | — | $44.55 (+3.87%) |
Oct 8, 2026 18d ago | SC 13G | $41.38 | awaiting T+60 | — | $44.55 (+7.66%) |
Jul 22, 2026 13w ago | 8-K | $41.37 $41.49 | ▲ +0.29% | ▼ −2.97% | $44.55 (+7.69%) |
Jul 21, 2026 13w ago | Press Release | $41.37 $41.49 | ▲ +0.29% | ▼ −2.97% | $44.55 (+7.69%) |
Jun 12, 2026 19w ago | Institutional Cluster | $39.94 $42.23 | ▲ +5.73% | ▲ +2.47% | $44.55 (+11.54%) |
May 5, 2026 25w ago | 8-K | $36.90 $42.79 | ▲ +15.96% | ▲ +13.22% | $44.55 (+20.73%) |
Apr 22, 2026 26w ago | 8-K | $35.58 $41.34 | ▲ +16.20% | ▲ +11.42% | $44.55 (+25.23%) |
Apr 21, 2026 26w ago | Press Release | $35.58 $41.34 | ▲ +16.20% | ▲ +11.42% | $44.55 (+25.23%) |
Apr 13, 2026 28w ago | Press Release | $38.13 $39.92 | ▲ +4.68% | ▼ −3.84% | $44.55 (+16.82%) |
US Market Status
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