OREANDA-NEWS. Orrstown Financial Services, Inc. (the “Company”) (NASDAQ:ORRF), the parent company of Orrstown Bank (the “Bank”), announced earnings for the three and six months ended June 30, 2016.  Net income was $0.7 million for the three months ended June 30, 2016, compared to $1.5 million for the same period in 2015.  For the six months ended June 30, 2016, net income was $3.3 million, compared to $4.0 million for the same period in 2015.  Diluted earnings per share amounted to $0.08 and $0.40 for the three and six months ended June 30, 2016, compared to $0.18 and $0.49 for the same periods in 2015.

Thomas R. Quinn, Jr., President and Chief Executive Officer, commented, “Despite the negative earnings impact of the legal reserve established in the second quarter, we continue to successfully execute our long term strategic plan, expanding into Dauphin, Lancaster and Berks counties.  Our growth to our east, combined with solid performance in our established markets has led to annualized growth of 12.9% in loans and 10.9% in deposits since December 31, 2015.  We will continue to invest in people and locations in markets where we believe our banking model will work well.”

OPERATING RESULTS

Net Interest Income

Net interest income totaled $9.0 million for the three months ended June 30, 2016, a 4.1% increase compared to the same period in 2015.  For the six months ended June 30, 2016, net interest income was $17.6 million, a 4.1% increase compared to the six months ended June 30, 2015.  Net interest margin on a fully tax-equivalent basis was 3.15% and 3.11% for the three and six months ended June 30, 2016, compared to 3.18% for the same periods in 2015.  Despite higher average balances in loans during both periods in 2016 as compared to 2015 and a 25 basis point (bp) increase in the prime lending rate between the two years, the flattening yield curve negatively affected the Company's net interest margin for the period.  Maturing loan proceeds were generally reinvested at lower rates due to competitive market conditions.  Increases on yields on securities helped increase the average yield earned on interest earning assets in 2016, however, it was not enough to offset increased funding costs.  The cost of interest bearing liabilities is generally more influenced by changes in short-term interest rates, and resulted in the cost of interest bearing liabilities increasing from 42 and 41 basis points for the three and six months ended June 30, 2015 to 53 and 52 basis points for the corresponding periods in 2016.

Net interest income for the three months ended June 30, 2016 totaled $9.0 million, an increase of 3.5% over the three months ended March 31, 2016 of $8.7 million, and resulted in an increase in net interest margin from 3.06% to 3.15% for the respective periods. Proceeds from the sales and maturities of securities were reinvested in loans which have higher yields than securities, and was the primary reason for the increase in net interest income and net interest margin.

Provision for Loan Losses

The Company recorded no provision for loan losses during the three and six months ended June 30, 2016 and 2015.  In calculating the required provision for loan losses, both quantitative and qualitative factors are considered in the determination of the adequacy of the allowance for loan losses.  For all periods presented, favorable historical charge-off data combined with stable economic and market conditions has resulted in the determination that no additional provision for loan losses was required to offset net charge-offs, nor were additional reserves needed for loan growth experienced during the periods.

Asset quality ratios have remained strong.  The allowance for loan losses of $13.4 million at June 30, 2016 represented 1.62% of total loans, as compared to $13.6 million at December 31, 2015, or 1.74% of total loans.  Despite the decrease in the reserve balance, coverage on nonperforming loans increased from 82.0% at December 31, 2015 to 95.4% at June 30, 2016 as nonaccrual loans decreased. Classified loans, defined as loans rated substandard, doubtful or loss, totaled $20.7 million at June 30, 2016, or approximately 2.5% of total loans outstanding, and decreased from $25.3 million, or 3.2% of loans outstanding, at December 31, 2015.

Despite favorable historical charge-off data in 2015 and 2016 and improved asset quality ratios, the growth the Company has experienced in its loan portfolio may result in a provisions for loan losses being needed in future quarters.

Noninterest Income

Total noninterest income for the three months ended June 30, 2016, excluding securities gains, totaled $4.5 million and matched the results from 2015.  For the six months ended June 30, 2016, noninterest income, excluding securities gains, totaled $8.8 million, a $413 thousand increase, or 4.9%, compared to the same period in 2016.  Mortgage banking activities generated revenue of $727 thousand for the three months ended June 30, 2016, which was approximately 8.3% lower than the same period in 2015, due to the Company maintaining a portion of the mortgage production for its portfolio. On a year to date basis, mortgage banking revenues totaled $1.4 million which represented a 4.3% increase over the six months ended June 30, 2015. Service charges on deposit accounts totaled $1.4 million and $2.7 million for the three and six months ended June 30, 2016, compared to $1.3 million and $2.5 million for the same periods in 2015, due principally to revenues generated from new product offerings and higher interchange fees associated with increased usage by our customers. For the three months ended June 30, 2016, trust department and brokerage income totaled $1.8 million as compared to $1.7 million for the three months ended June 30, 2015.  On a year to date basis, trust department and brokerage income totaled $3.6 million for the six months ended June 30, 2016, compared to $3.4 million for the six months ended June 30, 2015, an increase of 3.5%. Several estates were settled in the first quarter of 2016, which favorably impacted income.

Securities gains totaled $0 and $1.4 million for the three and six months ended June 30, 2016, compared to $353 thousand and $1.9 million for the same periods in 2015.  For all periods in which securities were sold, asset/liability management strategies and interest rate conditions resulted in gains on sales of securities, as market conditions presented opportunities to accelerate earnings on securities through gains, while also meeting the funding requirements of anticipated lending activity.

Noninterest expenses

Noninterest expenses totaled $12.6 million and $23.7 million for the three and six months ended June 30, 2016, compared to $11.7 million and $22.2 million for the corresponding prior year periods.  A reserve of $1.0 million was established for outstanding legal matters, which increased noninterest expense for the three and six months ended June 30, 2016.

Salaries and employee benefits totaled $6.3 million and $12.5 million for the three and six months ended June 30, 2016, compared to $6.2 million and $12.1 million for the same periods in 2015.  Excluding the impact of severance costs of $63 thousand and $360 thousand for the three and six months ended June 30, 2016 and 2015, salaries and benefits increased 7.8% and 6.3% for the three and six month periods in 2016, compared to 2015.   The higher expenses in 2016 were due to merit increases, additional employees, as well as higher costs associated with supplemental executive compensation and additional share-based awards granted in 2016, with incremental expense on top of previous awards that have not fully vested. 

Advertising and bank promotion expense increased from $324 thousand and $569 thousand for the three and six months ended June 30, 2015 to $355 thousand and $811 thousand for the corresponding periods in 2016.  The increase in the year-to-date amount is due primarily to $100 thousand of incremental educational improvement tax credit (“EITC”) contributions that carried over to the first quarter of 2016, and increased expenditures as we continue to promote the Orrstown brand in markets we presently serve.

Professional services for the three and six months ended June 30, 2016 totaled $570 thousand and $1.1 million, decreased from $820 thousand and $1.3 million for the corresponding periods in the prior year.  In the second quarter of 2015, the Company had higher than normal legal expenses as it attended to legal matters, including the outstanding litigation against the Company and the ongoing confidential investigation with the Securities and Exchange Commission, which began in the second quarter of 2015.  Although both matters are ongoing, the professional services associated with them in 2016 have been less than the heightened levels in 2015.

Taxes other than income totaled $253 thousand and $408 thousand for the three and six months ended June 30, 2016, representing an increase of $27 thousand for three month period and a decrease of $44 thousand for the six month period.  The increase in the three month period is attributable to higher capital, which is used in the assessment of the Pennsylvania Bank Shares tax.  The decrease in the six month period is the result of the incremental EITC contributions made in the first quarter of 2016, a corresponding $90 thousand credit was recognized on our Bank Shares Tax liability, and reduced the tax expense for the period.

Income Taxes

Income tax expense totaled $252 thousand and $866 thousand for the three and six months ended June 30, 2016, compared to $321 thousand and $1.0 million for the same periods in 2015.  The Company’s effective tax rate is significantly less than the federal statutory rate of 35.0% principally due to tax-free income, including interest earned on tax-free loans and securities, and earnings on the cash surrender value of life insurance policies.  On a year to date basis, the effective tax rate for the six months ended June 30, 2016 was 21.0%, compared to 20.7% for the six months ended June 30, 2015.  The effective tax rate for the six months ended June 30, 2016 compared to the same period in 2015 is the result of a larger percentage of pre-tax income being tax-free, additional federal income tax credits in the current year’s results, offset by non-tax deductible expenses.

FINANCIAL CONDITION

Assets increased 1.4% from December 31, 2015 and totaled $1.3 billion at June 30, 2016.  Although total assets have remained consistent between periods, the composition of the balance sheet has changed.   Securities available for sale declined from $394.1 million at December 31, 2015 to $324.5 million at June 30, 2016.  As a result of interest rate market conditions during the six months ended June 30, 2016, the Company liquidated its government-sponsored enterprise commercial mortgage obligations portfolio of $63.6 million at December 31, 2015 at a gain of $1.4 million, and used the proceeds to fund loan demand, including liquidity for loans that will fund after the end of the quarter.

Gross loans, excluding those held for sale, totaled $831.9 million at June 30, 2016, an increase of $50.2 million, or 6.4% (12.9% annualized), from $781.7 million at December 31, 2015.  In comparison to June 30 2015’s loan balance of $751.5 million, loans increased $80.4 million, or 10.7%.

A summary of loan balances, by loan class within segments, is as follows at June 30, 2016, December 31, 2015 and June 30, 2015:

(Dollars in thousands) June 30, 2016   December 31, 2015   June 30, 2015
           
Commercial real estate:          
Owner-occupied $ 106,649     $ 103,578     $ 112,419  
Non-owner occupied 190,558     145,401     149,022  
Multi-family 38,957     35,109     25,376  
Non-owner occupied residential 56,100     54,175     51,585  
Acquisition and development:          
1-4 family residential construction 6,714     9,364     6,961  
Commercial and land development 24,748     41,339     33,721  
Commercial and industrial 82,616     73,625     60,286  
Municipal 61,568     57,511     59,366  
Residential mortgage:          
First lien 129,577     126,022     123,775  
Home equity – term 16,216     17,337     18,952  
Home equity – lines of credit 110,908     110,731     103,187  
Installment and other loans 7,322     7,521     6,880  
  $ 831,933     $ 781,713     $ 751,530  
                       

Growth was experienced in nearly all loan segments from December 31, 2015 to June 30, 2016, with the largest increase coming in the commercial real estate segment, which grew by $54.0 million, which includes construction loans that were converted to permanent amortization upon completion of the project.   The Company’s increased sales efforts and additional relationship managers have resulted in growth, as we capitalize on disruption in the market that has been caused by the acquisition of some of the competitors in the markets served by larger institutions.

Total deposits were $1.1 billion at June 30, 2016, a 5.4% (10.9% annualized) increase from December 31, 2015.  Non-interest bearing deposits increased $16.3 million, or 12.4%, from December 31, 2015 to June 30, 2016 and totaled $147.7 million at June 30, 2016.  Interest bearing deposits totaled $940.3 million at June 30, 2016, a 4.4% increase (8.8% annualized) from December 31, 2015.  The Company has been able to gather both non-interest bearing and interest bearing deposits as it increases its commercial relationships and obtains new relationships from its enhanced cash management offerings.  The additional deposits that the Company obtained in the first half of 2016 were used to fund the pay down of short-term borrowings.

Shareholders’ Equity
               
Shareholders’ equity totaled $141.0 million at June 30, 2016, an increase of $8.0 million, or 6.0%, from $133.1 million at December 31, 2015. This increase was primarily the result of an increase in accumulated other comprehensive income, net of tax, of $6.2 million and net income of $3.3 million for the six months ended June 30, 2016, offset by dividends declared on common stock of $1.4 million and treasury stock repurchases.

On September 14, 2015, the Board of Directors authorized a stock repurchase plan in which the Company may repurchase up to approximately 416,000 shares in the open market.  As of June 30, 2016, 82,725 shares had been repurchased under the plan at a total cost of $1.4 million.

Asset Quality

Risk assets, defined as nonaccrual loans, restructured loans, loans past due 90 days or more and still accruing, and other real estate owned totaled $15.7 million at June 30, 2016, a decrease of $1.8 million, or 10.3% from March 31, 2016 and $2.4 million, or 13.5%, from December 31, 2015.

The allowance for loan losses totaled $13.4 million at June 30, 2016, a decrease of $128 thousand from $13.6 million at December 31, 2015, due to net charge-offs for the period.  The allowance for loan losses to nonperforming loans totaled 95.4% at June 30, 2016 compared to 82.0% at December 31, 2015, and the allowance for loan losses to nonperforming loans and restructured loans still accruing totaled 89.6% at June 30, 2016, compared to 78.2% at December 31, 2015.  Management believes the allowance for loan losses to total loans ratio remains adequate at 1.62% as of June 30, 2016.

Operating Highlights (Unaudited):                      
  Three Months Ended           Six Months Ended
  June 30,   June 30,           June 30,   June 30,
(Dollars in thousands, except per share data) 2016   2015           2016   2015
                       
Net income $ 678     $ 1,502             $ 3,258     $ 3,964  
Diluted earnings per share $ 0.08     $ 0.18             $ 0.40     $ 0.49  
Dividends per share $ 0.09     $ 0.07             $ 0.17     $ 0.07  
Return on average assets 0.21 %   0.50 %           0.50 %   0.67 %
Return on average equity 1.97 %   4.58 %           4.78 %   6.12 %
Net interest income $ 8,951     $ 8,598             $ 17,601     $ 16,913  
Net interest margin 3.15 %   3.18 %           3.11 %   3.18 %
Balance Sheet Highlights (Unaudited):          
  June 30,   December 31,   June 30,
(Dollars in thousands, except per share data) 2016   2015   2015
           
Assets $ 1,311,353     $ 1,292,816     $ 1,232,783  
Loans, gross 831,933     781,713     751,530  
Allowance for loan losses (13,440 )   (13,568 )   (13,852 )
Deposits 1,087,969     1,032,167     962,854  
Shareholders' equity 141,039     133,061     130,262  
Book value per share 17.04     16.08     15.65  
ORRSTOWN FINANCIAL SERVICES, INC. AND ITS WHOLLY-OWNED SUBSIDIARY    
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)      
               
  June 30,   December 31,   June 30,
(Dollars in thousands) 2016
   2015   2015
Assets          
Cash and cash equivalents $ 63,649     $ 28,340     $ 23,794  
Securities available for sale   324,540       394,124       376,436  
               
Loans held for sale   6,627       5,917       4,130  
           
Loans   831,933       781,713       751,530  
Less: Allowance for loan losses   (13,440 )     (13,568 )     (13,852 )
  Net loans 818,493     768,145     737,678  
               
Premises and equipment, net   31,379       23,960       24,314  
Other assets   66,665       72,330       66,431  
    Total assets $ 1,311,353     $ 1,292,816     $ 1,232,783  
               
Liabilities          
Deposits:          
  Non-interest bearing $ 147,680     $ 131,390     $ 142,790  
  Interest bearing   940,289       900,777       820,064  
    Total deposits 1,087,969     1,032,167     962,854  
Borrowings 67,724     113,651     127,931  
Accrued interest and other liabilities 14,621     13,937     11,736  
    Total liabilities 1,170,314     1,159,755     1,102,521  
               
Shareholders' Equity          
Common stock   437       435       436  
Additional paid - in capital   124,807       124,317       123,829  
Retained earnings   9,787       7,939       5,272  
Accumulated other comprehensive income   7,421       1,199       745  
Treasury stock   (1,413 )     (829 )     (20 )
    Total shareholders' equity 141,039     133,061     130,262  
    Total liabilities and shareholders' equity $ 1,311,353     $ 1,292,816     $ 1,232,783  
ORRSTOWN FINANCIAL SERVICES, INC. AND ITS WHOLLY-OWNED SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME  (UNAUDITED)
                   
      Three Months Ended   Six Months Ended
      June 30,   June 30,   June 30,   June 30,
(Dollars in thousands, except per share data)   2016   2015   2016   2015
Interest and dividend income                
Interest and fees on loans   $ 8,384     $ 7,749     $ 16,375     $ 15,076  
Interest and dividends on investment securities   1,888     1,819     3,858     3,720  
  Total interest and dividend income   10,272     9,568     20,233     18,796  
Interest expense                
Interest on deposits   1,191     780     2,330     1,557  
Interest on borrowings   130     190     302     326  
  Total interest expense   1,321     970     2,632     1,883  
Net interest income   8,951     8,598     17,601     16,913  
Provision for loan losses   0     0     0     0  
  Net interest income after provision for loan losses   8,951     8,598     17,601     16,913  
                   
Noninterest income                
Service charges on deposit accounts   1,372     1,299     2,675     2,492  
Trust department and brokerage income   1,765     1,746     3,550     3,430  
Mortgage banking activities   727     793     1,369     1,313  
Other income   673     692     1,188     1,134  
Investment securities gains   0     353     1,420     1,882  
  Total noninterest income   4,537     4,883     10,202     10,251  
                   
Noninterest expenses                
Salaries and employee benefits   6,312     6,158     12,495     12,058  
Occupancy, furniture and equipment   1,340     1,325     2,652     2,692  
Data processing   519     526     1,154     1,037  
Advertising and bank promotions   355     324     811     569  
FDIC insurance   223     184     455     430  
Professional services   570     820     1,090     1,332  
Collection and problem loan   96     102     148     198  
Real estate owned expenses   58     49     101     74  
Taxes, other than income   253     226     408     452  
Legal reserve   1,000     0     1,000     0  
Other operating expenses   1,832     1,944     3,365     3,322  
  Total noninterest expenses   12,558     11,658     23,679     22,164  
  Income before income tax   930     1,823     4,124     5,000  
Income tax expense   252     321     866     1,036  
Net income   $ 678     $ 1,502     $ 3,258     $ 3,964  
                   
Per share information:                
  Basic earnings per share   $ 0.08     $ 0.19     $ 0.40     $ 0.49  
  Diluted earnings per share     0.08       0.18       0.40       0.49  
  Dividends per share     0.09       0.07       0.17       0.07  
  Average shares and common stock equivalents outstanding     8,136,003       8,138,430       8,137,537       8,136,462  
ANALYSIS OF NET INTEREST INCOME                      
Average Balances and Interest Rates, Taxable Equivalent Basis (Unaudited)
                       
  Three Months Ended
  June 30, 2016   June 30, 2015
      Tax   Tax       Tax   Tax
  Average   Equivalent   Equivalent   Average   Equivalent   Equivalent
(Dollars in thousands) Balance   Interest   Rate   Balance   Interest   Rate
Assets                      
Federal funds sold & interest-bearing bank balances $ 50,491     $ 79     0.63 %   $ 14,429     $ 17     0.47 %
Securities 330,973     2,046     2.49       369,368       1,878     2.04  
Loans 824,004     8,652     4.22       744,542       8,021     4.32  
Total interest-earning assets 1,205,468     10,777     3.60       1,128,339       9,916     3.52  
Other assets 98,376               82,987          
Total $ 1,303,844             $ 1,211,326          
                       
Liabilities and Shareholders' Equity                      
Interest bearing demand deposits $ 542,075     $ 282     0.21     $ 502,182     $ 225     0.18  
Savings deposits   91,341       36     0.16       84,366       34     0.16  
Time deposits   300,244     873     1.17       230,937       521     0.90  
Short term borrowings   47,810       25     0.21       94,953       81     0.34  
Long term debt   24,378       105     1.73       24,700       109     1.77  
Total interest bearing liabilities   1,005,848       1,321     0.53       937,138       970     0.42  
Non-interest bearing demand deposits   146,233               132,063          
Other   13,364               10,617          
Total Liabilities   1,165,445               1,079,818          
Shareholders' Equity   138,399               131,508          
Total $ 1,303,844             $ 1,211,326          
Net interest income (FTE)/net interest spread       9,456     3.07 %         8,946     3.10 %
Net interest margin         3.15 %           3.18 %
Tax-equivalent adjustment       (505 )             (348 )    
Net interest income     $ 8,951             $ 8,598      
                       
NOTES:  Yields and interest income on tax-exempt assets have been computed on a fully taxable equivalent basis assuming a 35% tax rate.
For yield calculation purposes, nonaccruing loans are included in the average loan balance.        
ANALYSIS OF NET INTEREST INCOME                      
Average Balances and Interest Rates, Taxable Equivalent Basis (Unaudited)
                       
  Six Months Ended
  June 30, 2016   June 30, 2015
      Tax   Tax       Tax   Tax
  Average   Equivalent   Equivalent   Average   Equivalent   Equivalent
(Dollars in thousands) Balance   Interest   Rate   Balance   Interest   Rate
Assets                      
Federal funds sold & interest-bearing bank balances $ 46,867     $ 144     0.62 %   $ 21,957     $ 43     0.39 %
Securities 347,294     4,189     2.43       363,037       3,783     2.10  
Loans 809,894     16,914     4.20       729,022       15,622     4.32  
Total interest-earning assets 1,204,055     21,247     3.55       1,114,016       19,448     3.52  
Other assets 96,334               82,346          
Total $ 1,300,389             $ 1,196,362          
                       
Liabilities and Shareholders' Equity                      
Interest bearing demand deposits $ 531,757     $ 532     0.20     $ 503,277     $ 444     0.18  
Savings deposits   89,522       71     0.16       86,007       68     0.16  
Time deposits   302,523     1,727     1.15       232,981       1,045     0.90  
Short term borrowings   62,076       91     0.29       86,708       141     0.33  
Long term debt   24,419       211     1.74       20,430       185     1.83  
Total interest bearing liabilities 1,010,297       2,632     0.52       929,403       1,883     0.41  
Non-interest bearing demand deposits   139,723               125,501          
Other   13,286               10,890          
Total Liabilities   1,163,306               1,065,794          
Shareholders' Equity   137,083               130,568          
Total $ 1,300,389             $ 1,196,362          
Net interest income (FTE)/net interest spread       18,615     3.03 %         17,565     3.11 %
Net interest margin         3.11 %           3.18 %
Tax-equivalent adjustment       (1,014 )             (652 )    
Net interest income     $ 17,601             $ 16,913      
                       
NOTES:  Yields and interest income on tax-exempt assets have been computed on a fully taxable equivalent basis assuming a 35% tax rate.
For yield calculation purposes, nonaccruing loans are included in the average loan balance.        
Nonperforming Assets / Risk Elements (Unaudited)              
               
  June 30,   March 31,   December 31,   June 30,
(Dollars in thousands) 2016   2016   2015   2015
               
Nonaccrual loans (cash basis) $ 14,092     $ 15,906     $ 16,557     $ 10,261  
Other real estate (OREO) 651     495     710     1,062  
Total nonperforming assets 14,743     16,401     17,267     11,323  
Restructured loans still accruing 907     1,044     793     1,004  
Loans past due 90 days or more and still accruing 0     1     24     171  
Total risk assets $ 15,650     $ 17,446     $ 18,084     $ 12,498  
               
Loans 30-89 days past due $ 1,051     $ 1,391     $ 2,532     $ 1,984  
               
Asset quality ratios:              
Total nonaccrual loans to loans 1.69 %   1.98 %   2.12 %   1.37 %
Total nonperforming assets to assets 1.12 %   1.27 %   1.34 %   0.92 %
Total nonperforming assets to total loans and OREO 1.77 %   2.04 %   2.21 %   1.50 %
Total risk assets to total loans and OREO 1.88 %   2.17 %   2.31 %   1.66 %
Total risk assets to total assets 1.19 %   1.36 %   1.40 %   1.01 %
               
Allowance for loan losses to total loans 1.62 %   1.66 %   1.74 %   1.84 %
Allowance for loan losses to nonaccrual loans 95.37 %   83.91 %   81.95 %   135.00 %
Allowance for loan losses to nonaccrual and restructured loans still accruing 89.61 %   78.74 %   78.20 %   122.96 %
Roll Forward of Allowance for Loan Losses (Unaudited)            
               
  Three Months Ended   Six Months Ended
  June 30,   June 30,   June 30,   June 30,
(Dollars in thousands) 2016   2015   2016   2015
               
Balance at beginning of period $ 13,347     $ 14,461     $ 13,568     $ 14,747  
Provision for loan losses 0     0     0     0  
Recoveries 247     50     355     99  
Loans charged-off (154 )   (659 )   (483 )   (994 )
Balance at end of period $ 13,440     $ 13,852     $ 13,440     $ 13,852  

About the Company

With $1.3 billion in assets, Orrstown Financial Services, Inc. and its wholly-owned subsidiary, Orrstown Bank, provide a wide range of consumer and business financial services through 25 banking offices and two remote service facilities located in Cumberland, Franklin, Lancaster and Perry Counties, Pennsylvania and Washington County, Maryland.  Orrstown Bank is an Equal Housing Lender and its deposits are insured up to the legal maximum by the FDIC.  Orrstown Financial Services, Inc.’s stock is traded on Nasdaq (ORRF).