Orrstown Financial Servs Q2 2026 Earnings Call: Complete Transcript

Orrstown Financial Servs (NASDAQ: ORRF ) released second-quarter financial results and hosted an earnings call on Wednesday.

Read the complete transcript below.

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For comprehensive financial data and transcripts, visit The full earnings call is available at Summary Orrstown Financial Servs reported strong financial performance in Q2 2026 with net income of $21.2 million, or $1.09 per diluted share.

The company's net interest margin improved to 4% excluding a one-time charge, and fee income contributed significantly to total operating income.

Despite some unexpected payoffs, the bank achieved annualized loan growth of 5%, with strong credit quality and reduced classified and nonaccrual loans.

Orrstown redeemed remaining subordinated notes, resulting in a $1.6 million charge, but expects enhanced future results.

Management remains optimistic about future growth, focusing on maintaining strong risk discipline and capital allocation to build long-term shareholder value.

Full Transcript OPERATOR I will be your conference operator today.

At this time I would like to welcome everyone to the Orrstown Financial Servs second quarter 2026 earnings conference call.

All lines have been placed on mute to prevent any background noise.

After the speaker's remarks, there will be a question-and-answer session.

If you'd like to ask a question during the Q&A session, simply press star followed by the number one on your telephone keypad.

If you'd like to withdraw your question, press star one a second time.

I will now turn the call over to Adam Metz, President and Chief Executive Officer of Orrstown Financial Servs and Orrstown Bank, who will begin the conference.

Mr.

Metz, please go ahead.

Adam Metz, President & CEO Thank you, Regina, and good morning.

I would like to thank everyone for participating in Orrstown's second quarter 2026 earnings conference call, both by telephone and through the webcast.

If you have not read the earnings release we issued yesterday afternoon, you may access it, along with the financial tables and schedules, by going to our website, Once there you can click the Investor Relations link and then the Events and Presentations link.

Also, before we start, I would like to mention that today's presentation may contain forward-looking information.

Cautionary statements about this information are included in the earnings release, the investor presentation, and our SEC filings.

The earnings release and investor presentation also include non-GAAP financial measures.

The appropriate reconciliations to GAAP are included in those documents.

Joining me today on the call is Neal Kalani, Orrstown Chief Financial Officer.

Also participating in the discussion are Zack Corey, Chief Revenue Officer, Bob Karate, Chief Risk Officer, and Dave Chaikowski, Chief Credit Officer.

Orrstown produced another strong outstanding quarter, highlighted by strong net income, earnings per share, return on average assets, and return on average equity.

Net income was $21.2 million, or $1.09 per diluted share.

Return on average equity and return on average assets continued to exceed peer multiples.

Excluding the impact of a one-time charge to interest expense, the net interest margin improved 10 basis points to 4% during the quarter.

Fee income of $13.8 million contributed 22.1% of total operating income.

Wealth management income continues to be a source of strength for the bank.

We redeemed our remaining subordinated notes, which resulted in a charge of $1.6 million, but is expected to enhance go-forward results.

Despite higher-than-expected payoffs and paydowns, the bank achieved annualized loan growth of 5% for the quarter, with a meaningful portion of that growth occurring late in the quarter and therefore having a limited impact on second quarter interest income.

Credit quality remains strong.

Classified loans and nonaccrual loans both decreased quarter to quarter.