Orrstown Financial Services Inc (NASDAQ: ORRF)

Orrstown Financial Services, Inc. is a financial holding company primarily engaged in owning and supervising its wholly-owned subsidiary, Orrstown Bank. The company provides banking and financial advisory services in south central Pennsylvania and parts of Maryland, with a lending footprint extending into Delaware, Virginia, West Virginia, and the District of Columbia within a 75-mile radius of its Harrisburg headquarters. Orrstown Bank offers a full range of community banking products and services, including commercial, residential, and consumer lending, deposit accounts, and fiduciary and investment advisory services under the Orrstown Financial Advisors brand.

Orrstown Financial Services generates revenue primarily through interest income from its loan portfolio and noninterest income from fee-based services. The Bank earns interest on commercial, residential, and consumer loans, as well as on investment securities. Noninterest income is derived from deposit service charges, fiduciary and investment advisory fees, brokerage commissions, insurance product sales, and treasury management solutions offered to business clients. Revenue is also supported by gains from loan sales and other financial services activities conducted through Orrstown Financial Advisors.

The company operates through the following segments:

• Community Banking: This segment encompasses the core banking operations of Orrstown Bank, including lending activities such as commercial real estate, equipment, construction, working capital, municipal, and various consumer loans. The Bank originates home equity loans, home equity lines of credit, residential mortgages, and other consumer purpose loans primarily through its branch network. Deposit services include checking, savings, money market, and certificate of deposit accounts offered to retail, commercial, nonprofit, and government clients.

• Investment Services: This segment operates under the trade name Orrstown Financial Advisors (OFA) and provides fiduciary, investment advisory, and brokerage services. OFA offers retail brokerage services through a third-party arrangement with Cetera Wealth Services LLC. As of December 31, 2025, assets under management by OFA totaled $3.1 billion, reflecting its role in wealth management and advisory services for individual and institutional clients.

Orrstown Financial Services holds a competitive position in the community banking sector of south central Pennsylvania and the greater Baltimore region, where it faces competition from other banks, credit unions, finance and trust companies, mortgage banking firms, mutual funds, investment advisors, brokerage houses, and financial technology companies. The Bank differentiates itself through relationship-based lending, local market expertise, and a combination of value and service, supported by its branch network, digital banking platforms, and treasury management solutions. Its expansion via the Codorus Valley Merger in July 2024 strengthened its market presence in York County and enhanced penetration in existing markets.

Orrstown Bank serves a diverse customer base including retail consumers, small and medium-sized businesses, commercial enterprises, nonprofit organizations, and government entities across its primary market area. The Bank maintains relationships with depositors and borrowers in Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry, and York Counties in Pennsylvania, as well as Anne Arundel, Baltimore, Harford, Howard, and Washington Counties in Maryland, and Baltimore City. Its lending activities also extend to customers in Delaware, Virginia, West Virginia, and the District of Columbia within its 75-mile radius footprint.