Orrstown Financial Services Inc (ORRF, Financial) filed Quarterly Report for the period ended 2010-03-31.
Orrstown Financial Services Inc has a market cap of $185.8 million; its shares were traded at around $23.42 with a P/E ratio of 11.5 and P/S ratio of 2.7. The dividend yield of Orrstown Financial Services Inc stocks is 3.8%.
Net interest income for the first quarter of 2010 was $10,497,000 representing a growth of $2,475,000, or 30.9% over the $8,022,000 realized during the first quarter last year. On a fully taxable equivalent basis (FTE), net interest income for the first quarter of 2010 and 2009 was $10,885,000 and $8,326,000, respectively. Net interest margin increased to 3.76% during the first quarter of 2010, an increase of 36 basis points from the first quarter of 2009, primarily as a result of lower overall cost of funds. Earning asset yields have declined 37 basis points versus first quarter 2009 but cost of funds has declined 73 basis points versus the same period. We have kept liabilities relatively short and taken advantage of the normal yield curve.
Service charges on deposits increased $185,000, or 12.2%, driven primarily by increases in service charges from the Mastermoney debit card program of $128,000 from the prior year first quarter. Other income had a net increase of $94,000, which included a $119,000 gain on the sale of a piece of real estate. These increases were offset by a decline in service charges on loans of $193,000, or 21.8% due primarily to a decrease in secondary market mortgage program income of $125,000.
Other expenses rose from $7,677,000 during the first quarter of 2009 to $8,786,000 during the same period of 2010, an increase of $1,109,000, or 14.4%, due primarily to an increase in FDIC insurance expense of $435,000 from the first quarter of 2009. Salary expense increased by $322,000, or 11.3%, versus the prior year. Benefit expense increased by $239,000 over the prior year. Most operating expenses grew commensurate with the overall growth of the Corporation.
The provision for loan losses amounted to $1,420,000 and $215,000 for the first quarter of 2010 and 2009, respectively. The reserve to loan ratio for the Corporation was 1.34% at March 31, 2010, compared to 0.87% on March 31, 2009. These provisions compared to net charge-offs of $467,000 during the first quarter 2010 and $181,000 during the same period last year. An unallocated amount of $701,000 was included in the March 31, 2010 allowance versus $1,262,000 unallocated at December 31, 2009.
At March 31, 2010, the total recorded investment in impaired loans was $39,598,000, of which $25,774,000 had specific allowances determined in accordance with generally accepted accounting principles and $13,824,000 did not have specific allowances. The allowance for loan losses on these impaired loans amounted to $6,197,000 at March 31, 2010. The impaired loan total includes the three aforementioned commercial credits that total $16.1 million.
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Orrstown Financial Services Inc has a market cap of $185.8 million; its shares were traded at around $23.42 with a P/E ratio of 11.5 and P/S ratio of 2.7. The dividend yield of Orrstown Financial Services Inc stocks is 3.8%.
Highlight of Business Operations:
Orrstown Financial Services, Inc. recorded net income of $3,406,000 for the first quarter of 2010 compared to $3,025,000 for the same period in 2009, representing an increase of $381,000 or 12.6%. Basic earnings per share (EPS) increased $0.05 to $0.52 in the recent quarter from the $0.47 earned during the first quarter of 2009. Diluted earnings per share for the first quarter were $0.50 versus $0.45 last year.Net interest income for the first quarter of 2010 was $10,497,000 representing a growth of $2,475,000, or 30.9% over the $8,022,000 realized during the first quarter last year. On a fully taxable equivalent basis (FTE), net interest income for the first quarter of 2010 and 2009 was $10,885,000 and $8,326,000, respectively. Net interest margin increased to 3.76% during the first quarter of 2010, an increase of 36 basis points from the first quarter of 2009, primarily as a result of lower overall cost of funds. Earning asset yields have declined 37 basis points versus first quarter 2009 but cost of funds has declined 73 basis points versus the same period. We have kept liabilities relatively short and taken advantage of the normal yield curve.
Service charges on deposits increased $185,000, or 12.2%, driven primarily by increases in service charges from the Mastermoney debit card program of $128,000 from the prior year first quarter. Other income had a net increase of $94,000, which included a $119,000 gain on the sale of a piece of real estate. These increases were offset by a decline in service charges on loans of $193,000, or 21.8% due primarily to a decrease in secondary market mortgage program income of $125,000.
Other expenses rose from $7,677,000 during the first quarter of 2009 to $8,786,000 during the same period of 2010, an increase of $1,109,000, or 14.4%, due primarily to an increase in FDIC insurance expense of $435,000 from the first quarter of 2009. Salary expense increased by $322,000, or 11.3%, versus the prior year. Benefit expense increased by $239,000 over the prior year. Most operating expenses grew commensurate with the overall growth of the Corporation.
The provision for loan losses amounted to $1,420,000 and $215,000 for the first quarter of 2010 and 2009, respectively. The reserve to loan ratio for the Corporation was 1.34% at March 31, 2010, compared to 0.87% on March 31, 2009. These provisions compared to net charge-offs of $467,000 during the first quarter 2010 and $181,000 during the same period last year. An unallocated amount of $701,000 was included in the March 31, 2010 allowance versus $1,262,000 unallocated at December 31, 2009.
At March 31, 2010, the total recorded investment in impaired loans was $39,598,000, of which $25,774,000 had specific allowances determined in accordance with generally accepted accounting principles and $13,824,000 did not have specific allowances. The allowance for loan losses on these impaired loans amounted to $6,197,000 at March 31, 2010. The impaired loan total includes the three aforementioned commercial credits that total $16.1 million.
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