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Orrstown Financial Services, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a net loss of $7.9 million compared to net income of $9.0 million in the same quarter the previous year. This loss is attributed to merger-related expenses, provisions for credit losses on acquired non-PCD loans, and retirement expenses for an executive.
Net interest income for the quarter was $51.7 million, up from $26.2 million in the previous year, driven by an increase in loan interest income due to a larger loan portfolio from the recent merger.
The provision for credit losses increased to $13.7 million from $136 thousand, primarily due to reserves on acquired non-PCD loans.
Noninterest income rose to $12.4 million from $5.9 million, with significant contributions from wealth management income and service charges.
Noninterest expenses increased to $60.3 million from $20.4 million, largely due to merger-related expenses and increased intangible asset amortization.
The company reported an effective tax rate of 20.1% for the quarter, compared to 21.9% in the previous year.
Average loans increased significantly to $4.0 billion, reflecting the impact of the merger, while the yield on loans rose to 7.07% from 5.78%.
Interest expense on deposits increased substantially due to higher market interest rates and competitive pressures.
Orrstown's total assets as of September 30, 2024, were $5.5 billion, with total liabilities of $5.0 billion and shareholders' equity of $516.2 million.
The report also details the impact of the merger with Codorus Valley, which was completed on July 1, 2024, and expanded Orrstown's market presence.
The filing includes a discussion of the economic climate, highlighting the impact of inflation and interest rates on the company's financial performance.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Orrstown Financial Services Inc quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.