Orrstown Financial Services, Inc. (ORRF) has reported a 41.41 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $1.44 million, or $0.18 a share in the quarter, compared with $2.46 million, or $0.30 a share for the same period last year.
Revenue during the quarter dropped 4.21 percent to $13.55 million from $14.15 million in the previous year period. Net interest income for the quarter rose 5.98 percent over the prior year period to $9.23 million. Non-interest income for the quarter fell 5.44 percent over the last year period to $4.57 million.
Orrstown Financial Services has made provision of $0.25 million for loan losses during the quarter, compared with a negative provision of $0.60 million in the same period last year.
Net interest margin improved 3 basis points to 3.14 percent in the quarter from 3.11 percent in the last year period.
Thomas R. Quinn, Jr., President and Chief Executive Officer, commented, ""We continue to be encouraged by our solid loan results and corresponding growth in deposits. Although our presence in Lancaster, Berks and Dauphin counties is relatively new, the reception has been favorable and we have been able to take advantage of opportunities in these dynamic markets. We have hired seasoned bankers with strong ties to their communities. The early results are encouraging; we will continue to be diligent in our efforts to expand east and take advantage of market disruption."
Liabilities outpace assets growth
Total assets stood at $1,354.15 million as on Sep. 30, 2016, up 6.26 percent compared with $1,274.34 million on Sep. 30, 2015. On the other hand, total liabilities stood at $1,214.36 million as on Sep. 30, 2016, up 6.56 percent from $1,139.61 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $833.21 million as on Sep. 30, 2016, up 11.20 percent compared with $749.32 million on Sep. 30, 2015. Deposits stood at $1,133.33 million as on Sep. 30, 2016, up 8.14 percent compared with $1,047.98 million on Sep. 30, 2015.
Noninterest-bearing deposit liabilities were $148.39 million or 13.09 percent of total deposits on Sep. 30, 2016, compared with $139.56 million or 13.32 percent of total deposits on Sep. 30, 2015.
Investments stood at $374.90 million as on Sep. 30, 2016, down 4.91 percent or $19.35 million from year-ago. Shareholders equity stood at $139.80 million as on Sep. 30, 2016, up 3.76 percent or $5.07 million from year-ago.
Return on average assets moved down 34 basis points to 0.43 percent in the quarter from 0.77 percent in the last year period. At the same time, return on average equity decreased 335 basis points to 4.09 percent in the quarter from 7.44 percent in the last year period.
Nonperforming assets moved down 17.45 percent or $3.02 million to $14.27 million on Sep. 30, 2016 from $17.29 million on Sep. 30, 2015. Meanwhile, nonperforming assets to total assets was 1.05 percent in the quarter, down from 1.36 percent in the last year period.
Book value per share was $16.86 for the quarter, up 4.01 percent or $0.65 compared to $16.21 for the same period last year.
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