Orrstown Q3 EPS $1.17, NIM Jumps to 4.12%; First 2027 Guidance Issued
ORRF sits 30% above its 52-week low of $32.3.
Summary
Orrstown earned $1.17 per diluted share in Q3 2026 on a 25 basis point margin expansion to 4.12% and a 56.0% efficiency ratio, and used its investor deck to issue first-time 2027 guidance of 4.05%-4.15% NIM and ~5% loan growth. The blemish is a $41.6M pre-tax rise in unrealized securities losses that pulled tangible book value per share down to $25.96.
Key Events · Earnings and Guidance · ORRF
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Q3 EPS $1.17, Net Income $22.8M
Diluted EPS of $1.17 versus $1.09 in Q2 2026 and $1.13 in Q3 2025; net income $22.8M with return on average assets of 1.60% and return on average equity of 14.62%.
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Margin Expands 25 bps to 4.12%
Net interest income rose $4.5M to $53.3M. Against the adjusted 4.00% Q2 margin (excluding $1.6M of accelerated subordinated-note mark amortization) the gain is 12 bps, from an eight basis point rise in asset yields and a 22 basis point cut in funding costs.
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First 2027 Guidance Issued
Investor presentation targets ~5.0% annualized loan growth, NIM of 4.05%-4.15%, noninterest income of $54M-$56M and noninterest expense of $153M-$157M annualized, with an effective tax rate near 21%.
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Securities Losses Cut Tangible Book Value
Pre-tax unrealized securities losses rose $41.6M on wider spreads and higher rates, taking AOCI to a $52.3M loss and tangible book value per share to $25.96 from $26.71; the tangible common equity ratio fell to 9.1% from 9.5%.
Analysis · ORRF · Finance
The quarter itself is solid rather than spectacular: EPS of $1.17 versus $1.09 in Q2 and $1.13 a year ago, with return on average assets steady at 1.60%. What matters more is the margin. Net interest margin rose 25 basis points to 4.12%, and even against the adjusted 4.00% second-quarter figure (which strips out $1.6M of accelerated subordinated-note mark amortization) that is a real 12 basis point gain, driven by an eight basis point lift in asset yields and a 22 basis point drop in the cost of interest-bearing liabilities. The efficiency ratio fell to 56.0% from an adjusted 58.6%. The offset is the balance sheet mix: loans grew $95.3M (9% annualized) while deposits fell $38.1M, pushing the loan-to-deposit ratio to 92% from 89% and FHLB borrowings up to $417.3M from $274.8M. Rising rates also widened the unrealized securities loss by $41.6M pre-tax, cutting tangible book value per share to $25.96 from $26.71 and the tangible common equity ratio to 9.1% from 9.5%. Capital remains comfortably above well-capitalized thresholds (Tier 1 leverage 10.2%). The new item is the 2027 outlook in the investor presentation: roughly 5.0% annualized loan growth, NIM of 4.05%-4.15%, noninterest income of $54M-$56M and noninterest expense of $153M-$157M annualized, with a ~21% tax rate. That is the first hard framework for next year, and it implies the margin gains are expected to hold rather than reverse.
How filings like this one have moved
In the 30 days to Oct 21, 2026, 29.2% of the 1544 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.49%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, ORRF was trading at $42.11 on NASDAQ in the Finance sector, with a market capitalization of approximately $828.1M. The 52-week trading range was $32.30 to $43.81. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.