Orrstown Financial Services Inc (ORRF, Financial) filed Quarterly Report for the period ended 2009-03-31.
. The dividend yield of Orrstown Financial Services Inc stocks is 3.4%.
Interest bearing demand deposit balances increased $50.3 million, or 21.6%. Contributing to that increase was $24.4 million in reward checking growth, while money market account products grew $8.4 million. Savings account balances have declined $2.5 million from first quarter 2008 levels. Time deposit accounts have increased by $76.7 million due brokered certificates of deposits that were purchased in the latter half of 2008. These deposits were purchased at competitive rates as shown by the decline of 9.9% in interest expense from $2,768,000 for the first quarter 2008 to $2,494,000 for the same period in 2009. Purchase of these deposits has helped to fund our strong loan demand.
Total noninterest income, excluding securities gains, increased $242,000, or 6.8%, from $3,562,000 to $3,804,000. Net security gains the first quarter 2008 were $49,000 compared to the $165,000 of net gains taken in the first quarter of 2009. For the first quarter of 2009, a write down of $36,000 was included in other expenses for other than temporarily impaired equity securities. Service charges on deposits remained almost flat, decreasing by 1.6%. Revenue from the use of debit cards grew $24,000. Overdraft protection fees declined $66,000, or 7.4%,
Other service charges increased by $339,000, or 47.9%. Loan fees grew by $64,000 primarily in prepayment fees as a result of the low rate environment. The increased production in the secondary market mortgage program grew related income by $256,000, or 64.3% over the first quarter of 2008. ATM fees grew $32,000 over the $114,000 earned the same quarter last year. Other income increased by $82,000 primarily due to life insurance income of $72,000.
$1,600,000. Telephone expense continues to rise, increasing $40,000, or 26.1%. Secondary market expense increased $35,000 due to increased originations. At March 31, 2009, reward checking balances increased $29.6 million over last year, increasing related expenses by $28,000. Many other expenses increased commensurate with growth. The overhead efficiency ratio for Orrstown Financial Services, Inc. increased to 62.6% for the current quarter versus the 56.6% produced a year ago.
At March 31, 2009, the total recorded investment in impaired loans was $2,373,000, of which $24,000 had allowances determined in accordance with SFAS No. 114 and $2,349,000 did not have allowances determined in accordance with SFAS 114. The allowance for loan losses on these impaired loans amounted to $15,000 at March 31, 2009. At December 31, 2008, the total recorded investment in impaired loans was $1,830,000, of which $36,000 had allowances determined in accordance with SFAS No. 114 and $1,794,000 did not have allowances determined in accordance with SFAS 114. The allowance for loan losses on these impaired loans amounted to $18,000 at December 31, 2008.
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. The dividend yield of Orrstown Financial Services Inc stocks is 3.4%.
Highlight of Business Operations:
Orrstown Financial Services, Inc. recorded net income of $3,025,000 for the first quarter of 2009 compared to $3,250,000 for the same period in 2008, representing a decrease of $225,000 or 6.9%. Basic earnings per share (EPS) decreased $0.04 to $0.47 in the recent quarter from the $0.51 earned during the first quarter of 2008. Diluted earnings per share for the first quarter were $0.45 versus $0.48 last year.Interest bearing demand deposit balances increased $50.3 million, or 21.6%. Contributing to that increase was $24.4 million in reward checking growth, while money market account products grew $8.4 million. Savings account balances have declined $2.5 million from first quarter 2008 levels. Time deposit accounts have increased by $76.7 million due brokered certificates of deposits that were purchased in the latter half of 2008. These deposits were purchased at competitive rates as shown by the decline of 9.9% in interest expense from $2,768,000 for the first quarter 2008 to $2,494,000 for the same period in 2009. Purchase of these deposits has helped to fund our strong loan demand.
Total noninterest income, excluding securities gains, increased $242,000, or 6.8%, from $3,562,000 to $3,804,000. Net security gains the first quarter 2008 were $49,000 compared to the $165,000 of net gains taken in the first quarter of 2009. For the first quarter of 2009, a write down of $36,000 was included in other expenses for other than temporarily impaired equity securities. Service charges on deposits remained almost flat, decreasing by 1.6%. Revenue from the use of debit cards grew $24,000. Overdraft protection fees declined $66,000, or 7.4%,
Other service charges increased by $339,000, or 47.9%. Loan fees grew by $64,000 primarily in prepayment fees as a result of the low rate environment. The increased production in the secondary market mortgage program grew related income by $256,000, or 64.3% over the first quarter of 2008. ATM fees grew $32,000 over the $114,000 earned the same quarter last year. Other income increased by $82,000 primarily due to life insurance income of $72,000.
$1,600,000. Telephone expense continues to rise, increasing $40,000, or 26.1%. Secondary market expense increased $35,000 due to increased originations. At March 31, 2009, reward checking balances increased $29.6 million over last year, increasing related expenses by $28,000. Many other expenses increased commensurate with growth. The overhead efficiency ratio for Orrstown Financial Services, Inc. increased to 62.6% for the current quarter versus the 56.6% produced a year ago.
At March 31, 2009, the total recorded investment in impaired loans was $2,373,000, of which $24,000 had allowances determined in accordance with SFAS No. 114 and $2,349,000 did not have allowances determined in accordance with SFAS 114. The allowance for loan losses on these impaired loans amounted to $15,000 at March 31, 2009. At December 31, 2008, the total recorded investment in impaired loans was $1,830,000, of which $36,000 had allowances determined in accordance with SFAS No. 114 and $1,794,000 did not have allowances determined in accordance with SFAS 114. The allowance for loan losses on these impaired loans amounted to $18,000 at December 31, 2008.
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