Orrstown Financial Services, Inc Recognized by Sandler O'Neill + Partners

Shippensburg, PA (September 30, 2009) – Orrstown Financial Services, Inc. (NASDAQ: ORRF) is pleased to announced that it has been selected by Sandler O’Neill + Partners as one of the top performing small-cap banks in the country. The 30 institutions that comprise Sandler O’Neill’s “2009 Bank & Thrift Sm-All Stars” were chosen from a universe of 509 publicly traded banks and thrifts with market capitalizations of less than $2 billion.

Dan Arnold, Associate Director – Equity Research at Sandler O’Neill commented, “Our 2009 Sm-All Stars have performed exceptionally well in a difficult banking environment and represent some of the top performing banks and thrifts in the nation.” Thomas R. Quinn, Jr., President & CEO of Orrstown Financial Services, Inc. added, “We’re honored to be recognized by one of the pre-eminent investment banking firms for our strong performance. The guidance of the Board of Directors and the strength of our entire management team have been instrumental in the success of the organization. We have a great track record and we believe the best is yet to come.”

The Sandler O’Neill + Partners survey analyzed growth, profitability, credit quality, and capital strength. Companies were evaluated based on absolute performance in eight financial variables:
(1) EPS, (2) loans, (3) deposits, (4) return on average equity, (5) nonperforming assets to loans plus OREO ratio, (6) net charge-off ratio, (7) reserve to nonperforming assets ratio and (8) Tier 1 risk-based capital ratio. To earn “Sm-All Star” status, the banks and thrifts needed to be at or above the peer median for the first seven metrics surveyed, plus be considered “Well Capitalized” per the Tier 1 risk-based capital ratio.
Sandler O'Neill is a full-service investment banking firm to the financial industry. The firm is a market-maker in hundreds of financial stocks and publishes equity and fixed income research focused on selected banks, thrifts and insurance companies, including equity research coverage on Alliance. Additional information can be found on their website at www.sandleroneill.com.

With over $1 billion in assets, Orrstown Financial Services, Inc. and its subsidiary, Orrstown Bank, provide a full range of consumer and business financial services through twenty one banking offices and two remote service facilities located in Cumberland, Franklin and Perry Counties, Pennsylvania and Washington County, Maryland. Orrstown Financial Services, Inc.’s stock is quoted on the NASDAQ Capital Market under the symbol ORRF.

Certain statements in this release may constitute “forward looking statements” under the Private Securities Litigation Reform Act of 1995, which involve risk and uncertainties. Orrstown Financial’s actual results may differ significantly from the results discussed in such forward-looking statements. Factors that might cause such a difference include, but are not limited to, economic conditions, competition in the geographic and business areas in which Orrstown Financial conducts its operations, fluctuations in interest rates, credit quality, and government regulation.