Orrstown Financial Services, Inc. (ORRF) has reported a 33.06 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $1.93 million, or $0.24 a share in the quarter, compared with $1.45 million, or $0.18 a share for the same period last year.
Revenue during the quarter grew 14.64 percent to $14.68 million from $12.80 million in the previous year period. Net interest income for the quarter rose 11.51 percent over the prior year period to $9.71 million. Non-interest income for the quarter rose 21.31 percent over the last year period to $4.97 million.
Net interest margin improved 12 basis points to 3.20 percent in the quarter from 3.08 percent in the last year period.
Thomas R. Quinn, Jr., president and chief executive officer, commented, "Our momentum in the fourth quarter continued the trend of double digit loan and deposit growth we saw throughout the year. We are encouraged by the expansion of revenue and assets as the investments we made in new people, markets, and products has begun to positively impact both our margin businesses and fee income sources."
Liabilities outpace assets growth
Total assets stood at $1,414.50 million as on Dec. 31, 2016, up 9.41 percent compared with $1,292.82 million on Dec. 31, 2015. On the other hand, total liabilities stood at $1,279.64 million as on Dec. 31, 2016, up 10.34 percent from $1,159.76 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $870.62 million as on Dec. 31, 2016, up 13.34 percent compared with $768.14 million on Dec. 31, 2015. Deposits stood at $1,152.45 million as on Dec. 31, 2016, up 11.65 percent compared with $1,032.17 million on Dec. 31, 2015. Noninterest-bearing deposit liabilities were $150.75 million or 13.08 percent of total deposits on Dec. 31, 2016, compared with $131.39 million or 12.73 percent of total deposits on Dec. 31, 2015.
Investments stood at $400.15 million as on Dec. 31, 2016, up 1.53 percent or $6.03 million from year-ago. Shareholders equity stood at $134.86 million as on Dec. 31, 2016, up 1.35 percent or $1.80 million from year-ago.
Return on average assets moved up 11 basis points to 0.56 percent in the quarter from 0.45 percent in the last year period. At the same time, return on average equity increased 127 basis points to 5.58 percent in the quarter from 4.31 percent in the last year period.
Credit quality improves
Orrstown Financial Services, Inc. recorded an improvement in credit quality during the quarter. Nonperforming assets moved down 57.21 percent or $9.88 million to $7.39 million on Dec. 31, 2016 from $17.27 million on Dec. 31, 2015. Nonperforming assets to total loans was 0.84 percent in the quarter, down from 2.21 percent in the last year period. Meanwhile, nonperforming assets to total assets was 0.52 percent in the quarter, down from 1.34 percent in the last year period. Book value per share was $16.28 for the quarter, up 1.24 percent or $0.20 compared to $16.08 for the same period last year.
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