Commenting on the third quarter results, Thomas R. Quinn, Jr., President and Chief Executive Officer, stated, “We continued the trend of consistent sequential quarter-over-quarter progress, and were extremely pleased with our steadily improving results and metrics. We increased net income by $426,000, or 12.33%, when comparing third quarter 2009 results to second quarter 2009 results. We also grew primary earnings per share from $.54 to $.61 and diluted earnings per share from $.51 to $.58 within the same time frame. Net interest income advanced 7.57% from $8,812,000 during the second quarter 2009 to $9,479,000 in the third quarter.
Net interest margin continued to increase, advancing six basis points, from 3.57% to 3.63%, following a 17 basis point increase the previous quarter. Return on assets improved 10 basis points to 1.36%, vs. the previous quarter, and return on equity grew 1.19% to 14.33% during that same period. In the third quarter we added $750,000 to our loan loss reserve due to continued loan growth and a continuation of our historical prudent approach. This raised our loan loss reserve to 0.92% of loans, up from 0.84% one year earlier. However, our ratio of non performing loans to average loans of 0.55% is still well below peers and demonstrates our continued focus on credit quality. The Company also demonstrated significant improvements in expense control, reflected by an efficiency ratio of 57.22% at the end of the third quarter compared to 62.64% at mid-year.”
Net income for the third quarter 2009 increased 22.7% to $3,880,000 from $3,163,000 during the same period last year. Primary earnings per share were $.61 for third quarter 2009 compared to $.49 per share for third quarter 2008. As a result of the Company’s continued robust growth, net interest income for the third quarter of 2009 was $9,479,000; an increase of 12.7% over the $8,408,000 realized during the same quarter in 2008. Non-interest income showed an increase of 17.9%, while non-interest expenses rose 10.0%.
During the third quarter of 2009, the net interest margin compressed 27 basis points, to 3.63%, versus third quarter 2008. This compares favorably, however, to the 3.57% net interest margin realized during the second quarter 2009. Balance sheet growth of 15.1% over last year resulted in total assets reaching $1.160 billion as of
Year over year comparisons also demonstrated solid progress. Net income for the nine months ended
The Board of Directors approved the fourth quarter cash dividend of $.22 per share for shareholders of record on
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.
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