The 25bp NIM expansion and 56% efficiency ratio signal strong operating leverage. Monitor deposit trends and FHLB borrowing levels in Q4 — the 3% annualized deposit decline and higher wholesale funding are the main risks to sustaining loan growth. The Q3 beat vs consensus suggests upward EPS revision potential for Q4.
Price Chart
Executive Summary
Orrstown Financial Services reported Q3 2026 diluted EPS of $1.17, beating consensus of $1.13 by 3.5%. Net income rose to $22.8M from $21.2M in Q2 2026, driven by a 25bp expansion in net interest margin to 4.12% and 9% annualized loan growth. Credit quality continued to improve with nonaccrual loans declining to 0.54% of total loans. The sequential improvement in NIM and operating efficiency (56.0% efficiency ratio vs 60.1% in Q2) are the key positive takeaways, though deposits declined 3% annualized and FHLB borrowings rose to fund loan growth.
Key Financial Metrics
Key Facts
- Q3 2026 diluted EPS $1.17 vs consensus $1.13 (beat by 3.5%)
- Net income $22.8M, up from $21.2M in Q2 2026 and $21.9M in Q3 2025
- Net interest margin expanded 25bp to 4.12% from 3.87% in Q2 2026
- Total loans grew $95.3M or 9% annualized from Q2 2026
- Nonaccrual loans to total loans improved to 0.54% from 0.58% in Q2 2026
- Efficiency ratio improved to 56.0% from 60.1% in Q2 2026
- Tangible book value per share declined to $25.96 from $26.71 in Q2 due to higher unrealized losses on securities
- Dividend maintained at $0.30 per share
Financial Impact
EPS beat of $0.04 vs consensus; net interest margin expansion of 25bp QoQ; loan growth of $95.3M
Risk Factors
- Deposits declined 3% annualized, requiring higher FHLB borrowings to fund loan growth
- Net unrealized losses on securities increased $41.6M due to rising rates, pressuring tangible book value
- Purchase accounting accretion declining ($3.9M in Q3 vs $4.3M in Q2) will reduce net interest income over time
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-066606 |
| Document: orrf-20261020.htm | 0001628280-26-066606 |
| Document: 0001628280-26-066606-index-headers.html | 0001628280-26-066606 |
| Document: 0001628280-26-066606-index.html | 0001628280-26-066606 |
| Document: 0001628280-26-066606.txt | 0001628280-26-066606 |
| 8-K Data (Synthetic) | 0001628280-26-066606 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 6d ago | 8-K | $42.89 | awaiting T+60 | — | $44.65 (+4.10%) |
Oct 20, 2026 6d ago | Press Release | $42.89 | awaiting T+60 | — | $44.65 (+4.10%) |
Oct 8, 2026 18d ago | SC 13G | $41.38 | awaiting T+60 | — | $44.65 (+7.90%) |
Jul 22, 2026 13w ago | 8-K | $41.37 $41.49 | ▲ +0.29% | ▼ −2.97% | $44.65 (+7.93%) |
Jul 21, 2026 13w ago | Press Release | $41.37 $41.49 | ▲ +0.29% | ▼ −2.97% | $44.65 (+7.93%) |
Jun 12, 2026 19w ago | Institutional Cluster | $39.94 $42.23 | ▲ +5.73% | ▲ +2.47% | $44.65 (+11.79%) |
May 5, 2026 25w ago | 8-K | $36.90 $42.79 | ▲ +15.96% | ▲ +13.22% | $44.65 (+21.00%) |
Apr 22, 2026 26w ago | 8-K | $35.58 $41.34 | ▲ +16.20% | ▲ +11.42% | $44.65 (+25.51%) |
Apr 21, 2026 26w ago | Press Release | $35.58 $41.34 | ▲ +16.20% | ▲ +11.42% | $44.65 (+25.51%) |
Apr 13, 2026 28w ago | Press Release | $38.13 $39.92 | ▲ +4.68% | ▼ −3.84% | $44.65 (+17.09%) |
US Market Status
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