Orrstown Financial Services, Inc. (ORRF) has reported a 22.40 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $2 million, or $0.24 a share in the quarter, compared with $2.58 million, or $0.32 a share for the same period last year.
Revenue during the quarter went up marginally by 1.80 percent to $14.57 million from $14.32 million in the previous year period. Net interest income for the quarter rose 18.35 percent over the prior year period to $10.24 million. Non-interest income for the quarter fell 23.48 percent over the last year period to $4.34 million.
Net interest margin improved 29 basis points to 3.35 percent in the quarter from 3.06 percent in the last year period.
Thomas R. Quinn, Jr., president and chief executive officer, commented, "The momentum which began in the second half of 2016 has continued and is growing in the first quarter of 2017. Our growth in loans, combined with effective balance sheet management, has moved our net interest margin substantially from 2016, ultimately resulting in over 18% net interest income growth. Our growth in loans, deposits and net interest margin are the result of great efforts by our staff in the Company’s core markets, and our 2016 investments we made in new markets."
Liabilities outpace assets growth
Total assets stood at $1,453.95 million as on Mar. 31, 2017, up 12.95 percent compared with $1,287.28 million on Mar. 31, 2016. On the other hand, total liabilities stood at $1,316.48 million as on Mar. 31, 2017, up 14.57 percent from $1,149.03 million on Mar. 31, 2016.
Loans outpace deposit growth
Net loans stood at $888.66 million as on Mar. 31, 2017, up 12.30 percent compared with $791.36 million on Mar. 31, 2016. Deposits stood at $1,183.88 million as on Mar. 31, 2017, up 12.92 percent compared with $1,048.38 million on Mar. 31, 2016.
Noninterest-bearing deposit liabilities were $157.98 million or 13.34 percent of total deposits on Mar. 31, 2017, compared with $146.09 million or 13.94 percent of total deposits on Mar. 31, 2016.
Investments stood at $423.60 million as on Mar. 31, 2017, up 29.31 percent or $96.01 million from year-ago. Shareholders equity stood at $137.47 million as on Mar. 31, 2017, down 0.56 percent or $0.78 million from year-ago.
Return on average assets moved down 23 basis points to 0.57 percent in the quarter from 0.80 percent in the last year period. At the same time, return on average equity decreased 163 basis points to 6.01 percent in the quarter from 7.64 percent in the last year period.
Credit quality improves
Orrstown Financial Services, Inc. recorded an improvement in credit quality during the quarter. Nonperforming assets moved down 54.89 percent or $9 million to $7.40 million on Mar. 31, 2017 from $16.40 million on Mar. 31, 2016. Nonperforming assets to total loans was 0.82 percent in the quarter, down from 2.04 percent in the last year period. Meanwhile, nonperforming assets to total assets was 0.51 percent in the quarter, down from 1.27 percent in the last year period.
Book value per share was $16.50 for the quarter, down 1.08 percent or $0.18 compared to $16.68 for the same period last year.
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