Key Points – Orrstown Financial Services posted second-quarter 2026 net income of $21.2 million, or $1.09 per diluted share, with management highlighting strong earnings, solid credit quality, and a quarterly dividend of $0.30 per share. – The company’s net interest margin…
proved to 4% on an adjusted basis after a one-time subordinated debt redemption charge, and management expects full-year margin to land near the top of its 3.90% to 4% guidance range. – Fee income and loan growth remained supportive, with wealth management income hitting a record quarter and loan production staying strong despite late-quarter payoffs; deposit mix also improved as non-interest-bearing balances rose and funding costs declined. Orrstown Financial Services (NASDAQ:ORRF) reported what executives described as another strong quarter, with second-quarter 2026 net income of $21.2 million, or $1.09 per diluted share, as improved funding costs and continued fee income strength supported results
President and Chief Executive Officer Adam Metz said the company delivered “strong net income, earnings per share, return on average assets, and return on average equity,” adding that credit quality remained solid during the quarter. Orrstown’s board also declared a quarterly dividend of $0.30 per share, payable in August. Margin improves despite one-time debt redemption charge Chief Financial Officer Neil Kalani said Orrstown’s reported net interest margin was affected by a one-time $1.6 million charge tied to the redemption of subordinated debt.
Excluding that charge, Kalani said the margin returned to 4%, matching the level from the fourth quarter of 2025. Kalani attributed the margin expansion to actions taken on funding costs and reduced reliance on overnight borrowings after deposit inflows in the first quarter. He said deposit costs appear to have “bottomed out” at this stage, while noting that the deposit environment remains competitive.