Orrstown Financial Services, Inc. Reports Third Quarter 2025 Results

Net income of $21.9 million, or $1.13 per diluted share, for the three months ended September 30, 2025 compared to net income of $19.4 million, or $1.01 per diluted share, for the three months ended June 30, 2025; excluding the impact of $1.0 million in merger-related expenses, net of taxes, net income and diluted earnings per share for the second quarter of 2025 were $20.2 million(1) and $1.04(1), respectively;Return on average assets was 1.60% and return on average equity was 15.72% for the three months ended September 30, 2025, compared to 1.45% and 14.56% for the return on average assets and return on average equity, respectively, for the three months ended June 30, 2025;Excluding the impact of the merger-related expenses referenced above, net of taxes, adjusted return on average assets and adjusted return on average equity were 1.51%(1) and 15.12%(1), respectively, for the three months ended June 30, 2025;Net interest margin, on a tax equivalent basis, was 4.11% in the third quarter of 2025 compared to 4.07% in the second quarter of 2025; the net accretion of purchase accounting marks positively impacted the margin by 52 basis points in the third quarter of 2025 compared to 50 basis points in the second quarter of 2025;Loans increased by $48.4 million, or approximately 5% annualized, from June 30, 2025 to September 30, 2025; classified loans decreased by $1.7 million from $65.8 million at June 30, 2025 to $64.1 million at September 30, 2025;Subordinated notes of $32.5 million were redeemed on September 30, 2025; as a result of the redemption, the Company amortized the remaining debt issuance costs of $0.3 million;Noninterest income increased by $0.5 million from $12.9 million for the three months ended June 30, 2025 to $13.4 million for the three months ended September 30, 2025;Noninterest expenses decreased by $1.3 million from $37.6 million for the three months ended June 30, 2025 to $36.3 million for the three months ended September 30, 2025; no merger-related expenses were incurred during the third quarter of 2025;Efficiency ratio decreased from 60.3% for the three months ended June 30, 2025 to 56.4% for the three months ended September 30, 2025;Tangible common equity increased to 8.8% at September 30, 2025 compared to 8.3% at June 30, 2025;Tangible book value per common share(1) increased to $24.12 per share at September 30, 2025 compared to $22.77 per share at June 30, 2025;The Board of Directors declared a cash dividend of $0.27 per common share, payable November 12, 2025, to shareholders of record as of November 5, 2025. (1) Non-GAAP measure. See Appendix A for additional information. HARRISBURG, Pa., Oct. 21, 2025 (GLOBE NEWSWIRE) -- Orrstown Financial Services, Inc. (the "Company") (NASDAQ: ORRF), the parent company of Orrstown Bank (the “Bank”), announced earnings for the periods ended September 30, 2025. Net income totaled $21.9 million for the three months ended September 30, 2025, compared to net income of $19.4 million for the three months ended June 30, 2025 and net loss of $7.9 million for the three months ended September 30, 2024. Diluted earnings per share was $1.13 for the three months ended September 30, 2025, compared to diluted earnings per share of $1.01 for the three months ended June 30, 2025 and diluted loss per share of $0.41 for the three months ended September 30, 2024. The Company did not incur merger-related expenses during the third quarter of 2025. For the second quarter of 2025, excluding the impact of merger-related expenses, net of taxes, net income and diluted earnings per share were $20.2 million(1) and $1.04(1), respectively. For the third quarter of 2024, excluding the impact from the non-recurring charges, net of taxes, net income and diluted earnings per share were $21.4 million(1) and $1.11(1), respectively. “Orrstown generated another quarter of impressive earnings, demonstrating our continued momentum after a measured start to the year,” said Thomas R. Quinn, Jr., President and Chief Executive Officer. “Loan growth was strong, fee income increased again and expenses continue to decline. This all translated into our strongest quarter of earnings on record with diluted EPS of $1.13, return on assets of 1.60% and return on equity of nearly 16%. The synergies achieved since the prior year merger are clearly evident in our financial metrics. Our capital ratios remain sound even after redeeming subordinated debt during the third quarter. While we are proud of our recent accomplishments, we remain focused on structuring our balance sheet to facilitate success in a changing interest rate environment within a competitive landscape. We are mindful of some remaining economic uncertainty and its potential impact on the overall business environment. We therefore plan to continue to grow prudently while making appropriate strategic investments along the way.” (1) Non-GAAP measure. See Appendix A for additional information. DISCUSSION OF RESULTS Balance Sheet Loans Loans held for investment increased by $48.4 million and totaled $4.0 billion and $3.9 billion at September 30, 2025 and June 30, 2025, respectively. Commercial loans increased by $38.2 million, or approximately 5% annualized, and residential mortgages increased by $10.3 million, or approximately 5%, from June 30, 2025 to September 30, 2025. Investment Securities Investment securities, all of which are classified as available-for-sale, increased by $5.0 million to $890.4 million at September 30, 2025 from $885.4 million at June 30, 2025. During the third quarter of 2025, the Bank purchased $57.7 million of investment securities, which was partially offset by sales of $41.6 million and paydowns totaling $20.5 million. Net unrealized losses declined by $9.1 million for the three months ended September 30, 2025 due to reduced market rates. The overall duration of the Company's investment securities portfolio was 4.4 years at September 30, 2025 compared to 4.5 years at June 30, 2025. See Appendix B for a summary of the Bank's investment securities at September 30, 2025, highlighting their concentrations, credit ratings and credit enhancement levels. Deposits During the third quarter of 2025, deposits increased by $16.9 million and totaled $4.5 billion at both September 30, 2025 and June 30, 2025. Money market deposits and time deposits increased by $64.0 million and $36.1 million, respectively, and interest-bearing demand deposits, non-interest bearing demand deposits and saving deposits decreased by $60.9 million, $16.7 million and $5.6 million, respectively, from June 30, 2025 to September 30, 2025. Money market deposits and time deposits were impacted by increases in brokered money market deposits of $40.0 million and brokered time deposits of $50.6 million. Continued run-off in higher yielding promotional balances partially offset these deposits. The decreases in the other categories were consistent with normal cyclical activity. The Bank's loan-to-deposit ratio increased to 88% at September 30, 2025 from 87% at June 30, 2025. Borrowings On September 30, 2025, the Company redeemed its $32.5 million outstanding 6.0% fixed-to-floating rate subordinated notes. During the three months ended September 30, 2025, the Company amortized the remaining debt issuance costs of $0.3 million as a result of the redemption. The Company actively manages its liquidity position through its various sources of funding to meet the needs of its clients. FHLB advances and other borrowings were $209.2 million at September 30, 2025 compared to $136.3 million at June 30, 2025. The increase was due to higher utilization of overnight borrowings during the third quarter of 2025 as lending and investing activities increased. This increase was partially offset by the subordinated note redemption. The Bank seeks to maintain sufficient liquidity to ensure client needs can be addressed in a timely basis. The Bank had available alternative funding sources, such as FHLB advances and other wholesale options, of approximately $1.7 billion at both September 30, 2025 and June 30, 2025. Income Statement Net Interest Income and Margin Net interest income was $51.0 million for the three months ended September 30, 2025 compared to $49.5 million for the three months ended June 30, 2025. The net interest margin, on a tax equivalent basis, increased to 4.11% in the third quarter of 2025 from 4.07% in the second quarter of 2025. This increase is primarily the result of an increase of six basis points in the yield on loans from the three months ended June 30, 2025 to the three months ended September 30, 2025. This was partially offset by an increase of three basis points in the cost of funds between the same periods due to the accelerated amortization of debt issuance costs in the third quarter. The net interest margin was positively impacted by the net accretion impact of purchase accounting marks on loans, securities, deposits and borrowings of $5.8 million during the third quarter of 2025 compared to $5.2 million for the second quarter of 2025. This change was due primarily to higher accelerated accretion in the three months ended September 30, 2025 compared to the three months ended June 30, 2025. Interest income on loans, on a tax equivalent basis, increased by $2.8 million to $66.0 million for the three months ended September 30, 2025 compared to $63.2 million for the three months ended June 30, 2025. Average loans increased by $84.1 million during the three months ended September 30, 2025 compared to the three months ended June 30, 2025. The accretion of purchase accounting marks on loans totaled $5.3 million during the third quarter of 2025 compared to $4.9 million during the second quarter of 2025. Interest income on investment securities, on a tax equivalent basis, was $10.6 million for both the third and second quarters of 2025. Average investment securities increased by $2.3 million during the three months ended September 30, 2025 compared to the three months ended June 30, 2025. Interest expense, on a tax equivalent basis, increased by $0.8 million to $26.1 million for the three months ended September 30, 2025 compared to $25.3 million for the three months ended June 30, 2025. Average FHLB advances and other borrowings increased by $65.8 million from $104.1 million for the three months ended June 30, 2025 to $168.9 million for the three months ended September 30, 2025. Subordinated notes were redeemed on September 30, 2025, which resulted in the accelerated amortization of the remaining debt issuance costs of $0.3 million, which reduced the net interest margin by two basis points. Borrowing costs increased by 25 basis points during the three months ended September 30, 2025. Average interest-bearing deposits decreased by $34.9 million during the three months ended September 30, 2025 compared to the three months ended June 30, 2025. The cost of interest-bearing deposits declined by two basis points from the second quarter of 2025 to the third quarter of 2025. In addition, interest expense includes $0.3 million and $0.4 million of amortization of purchase accounting marks on interest bearing liabilities for the three months ended September 30, 2025 and June 30, 2025, respectively. Provision for Credit Losses on Loans The allowance for credit losses ("ACL") on loans increased to $48.1 million at September 30, 2025 from $47.9 million at June 30, 2025. The ACL to total loans was 1.21% at September 30, 2025 compared to 1.22% at June 30, 2025. The Company recorded provision expense of $0.4 million for the three months ended September 30, 2025 compared to $0.2 million for the three months ended June 30, 2025. Net charge-offs were $0.2 million for the three months ended September 30, 2025 compared to $0.1 million for the three months ended June 30, 2025. Classified loans decreased by $1.7 million to $64.1 million at September 30, 2025 from $65.8 million at June 30, 2025 due to repayments of $5.8 million, net downgrades of $4.3 million and charge offs of $0.3 million. Delinquent loans decreased by $0.4 million from $12.3 million at June 30, 2025 to $11.9 million at September 30, 2025. Non-accrual loans totaled $26.2 million at September 30, 2025 compared to $22.4 million at June 30, 2025 due to additions to nonaccrual status of $7.8 million primarily consisting of $4.7 million for one commercial construction and land development relationship, $1.3 million in owner-occupied commercial real estate loans and $1.1 million in residential mortgages, partially offset by repayments totaling $3.9 million. Nonaccrual loans to total loans increased to 0.66% at September 30, 2025 compared to 0.57% at June 30, 2025. Management believes the ACL to be adequate based on current asset quality metrics and economic forecasts. Noninterest Income Noninterest income increased by $0.5 million to $13.4 million for the three months ended September 30, 2025 from $12.9 million for the three months ended June 30, 2025. Income from service charges was $3.0 million for the three months ended September 30, 2025 compared to $2.6 million for the three months ended June 30, 2025 based on increased interchange activity. Swap fee income increased by $0.1 million to $0.8 million for the three months ended September 30, 2025 compared to $0.7 million for the three months ended June 30, 2025. Swap fee income will fluctuate based on market conditions and client demand. Income from mortgage banking activities was $0.5 million for both the three months ended September 30, 2025 and June 30, 2025. The Bank sold 37 loans to the secondary market during the third quarter of 2025 compared to 47 loans during the second quarter of 2025. The impact of the reduction in loan sale activity was offset by gains from positive fair value adjustments resulting from the increase in the residential mortgage loan pipeline and declining market interest rates. Other income decreased by $0.3 million to $2.1 million for the three months ended September 30, 2025 compared to $2.4 million for the three months ended June 30, 2025. During the second quarter of 2025, the Bank recorded $0.3 million in solar tax credits and a gain on the sale of other real estate owned of $0.1 million. Noninterest Expenses Noninterest expenses decreased by $1.3 million to $36.3 million in the three months ended September 30, 2025 from $37.6 million in the three months ended June 30, 2025. For the three months ended September 30, 2025, the Company did not incur merger-related expenses compared to $1.0 million for the three months ended June 30, 2025. Advertising and bank promotions expense decreased by $0.9 million from $1.1 million for the three months ended June 30, 2025 to $0.2 million for the three months ended September 30, 2025 due to $0.7 million in contributions to tax credit programs during the second quarter of 2025. Taxes other than income increased by $0.5 million in the three months ended September 30, 2025 compared to the three months ended June 30, 2025. This decrease reflects the tax impact of the contributions referenced above. Salaries and benefits expense was $21.4 million for both the three months ended September 30, 2025 and June 30, 2025. The third quarter of 2025 reflects a full quarter impact from the increase in merit-based salaries that went into effect in May 2025 and third quarter contributions towards employee benefit expense that occur semi-annually. The second quarter of 2025 included $0.6 million of severance costs. Professional services expense decreased by $0.3 million from $2.0 million for the three months ended June 30, 2025 to $1.7 million for the three months ended September 30, 2025. The third quarter of 2025 reflects a reduction in the level of third-party assistance to enhance daily functions and operational processes throughout the organization. While the Company will remain reliant on these services in the fourth quarter of 2025, the Company expects expenses related to these services to continue to decline. Income Taxes The Company's effective tax rate was 21.0% for the third quarter of 2025 compared to 21.3% for the second quarter of 2025. The second quarter rate reflected a year-to-date adjustment to align with the revised projection for the full year. The Company's effective tax rate for the three months ended September 30, 2025 is aligned with the 21% federal statutory rate primarily due to the disallowed portion of interest expense against earnings in association with the Bank's tax-exempt investments under the Tax Equity and Fiscal Responsibility Act of 1982 partially offset by the benefit of tax-exempt income, including interest earned on tax-exempt loans and securities and income from life insurance policies and tax credits. The Company regularly analyzes its projected taxable income and makes adjustments to the provision for income taxes accordingly. Capital Shareholders’ equity totaled $571.9 million at September 30, 2025 compared to $548.4 million at June 30, 2025. The increase is due to net income of $21.9 million and other comprehensive income of $6.9 million, partially offset by dividend payments of $5.3 million. Tangible book value per common share(1) increased to $24.12 per share at September 30, 2025 from $22.77 per share at June 30, 2025. The Company's tangible common equity ratio was 8.8% at September 30, 2025 compared to 8.3% at June 30, 2025. Return on average tangible common equity per common share(1) was 19.7% for the three months ended September 30, 2025 compared to 18.4% for the three months ended June 30, 2025. Most of the Company's capital ratios increased during the three months ended September 30, 2025 due to earnings; however, total risk-based capital decreased due to impact of the redemption of subordinated notes. The Company's tier 1 common equity, tier 1 and total risk-based capital ratios were 11.1%, 11.3% and 13.1%, respectively, at September 30, 2025 compared to 10.9%, 11.1% and 13.3%, respectively, at June 30, 2025. The Company's Tier 1 leverage ratio increased to 9.3% at September 30, 2025 compared to 9.0% at June 30, 2025. At September 30, 2025, all four capital ratios applicable to the Company were above regulatory minimum levels to be deemed “well capitalized” under current bank regulatory guidelines. The Company continues to believe that capital is adequate to support the risks inherent in the balance sheet, as well as growth requirements. (1) Non-GAAP measure. See Appendix A for additional information. Investor Relations Contact:Neelesh KalaniExecutive Vice President, Chief Financial OfficerPhone (717) 510-7097 FINANCIAL HIGHLIGHTS (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30,(In thousands) 2025 2024 2025 2024 Profitability for the period: Net interest income$50,988 $51,697 $149,261 $104,681 Provision for credit losses - loans 396 14,115 51 15,348 Recovery of credit losses - unfunded loan commitments — (434) (100) (557)Noninterest income 13,382 12,386 37,921 26,188 Noninterest expenses 36,297 60,299 112,087 105,407 Income (loss) before income tax expense (benefit) 27,677 (9,897) 75,144 10,671 Income tax expense (benefit) 5,812 (1,994) 15,780 2,305 Net income (loss) available to common shareholders$21,865 $(7,903) $59,364 $8,366 Financial ratios: Return on average assets (1) 1.60% (0.57)% 1.47% 0.28%Return on average assets, adjusted (1) (2) (3)n/a 1.55% 1.52% 1.33%Return on average equity (1) 15.72% (5.85)% 14.77% 3.10%Return on average equity, adjusted (1) (2) (3)n/a 15.85% 15.28% 14.59%Net interest margin (1) 4.11% 4.14% 4.06% 3.88%Efficiency ratio 56.4% 94.1% 59.9% 80.5%Efficiency ratio, adjusted (2) (3)n/a 60.2% 58.5% 62.6%Income (loss) per common share: Basic$1.14 $(0.41) $3.09 $0.63 Basic, adjusted (2) (3)n/a $1.12 $3.20 $2.96 Diluted$1.13 $(0.41) $3.07 $0.62 Diluted, adjusted (2) (3)n/a $1.11 $3.17 $2.93 Average equity to average assets 10.18% 9.75% 9.94% 9.13% (1) Annualized for the three and nine months ended September 30, 2025 and 2024.(2) Ratio has been adjusted for the non-recurring charges for all periods presented prior to September 30, 2025.(3) Non-GAAP based financial measure. Please refer to Appendix A - Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations for a discussion of our use of non-GAAP based financial measures, including tables reconciling GAAP and non-GAAP financial measures appearing herein. FINANCIAL HIGHLIGHTS (Unaudited) (continued) September 30, December 31, (Dollars in thousands, except per share amounts) 2025 2024 At period-end: Total assets$5,470,233 $5,441,589 Loans, net of allowance for credit losses 3,931,631 3,882,525 Loans held-for-sale, at fair value 6,026 6,614 Securities available for sale, at fair value 890,357 829,711 Total deposits 4,533,560 4,623,096 FHLB advances and other borrowings and Securities sold under agreements to repurchase 241,719 141,227 Subordinated notes and trust preferred debt 36,970 68,680 Shareholders' equity 571,936 516,682 Credit quality and capital ratios (1): Allowance for credit losses to total loans 1.21% 1.24%Total nonaccrual loans to total loans 0.66% 0.61%Nonperforming assets to total assets 0.48% 0.45%Allowance for credit losses to nonaccrual loans 184% 202%Total risk-based capital: Orrstown Financial Services, Inc. 13.1% 12.4%Orrstown Bank 12.9% 12.4%Tier 1 risk-based capital: Orrstown Financial Services, Inc. 11.3% 10.2%Orrstown Bank 11.8% 11.2%Tier 1 common equity risk-based capital: Orrstown Financial Services, Inc. 11.1% 10.0%Orrstown Bank 11.8% 11.2%Tier 1 leverage capital: Orrstown Financial Services, Inc. 9.3% 8.3%Orrstown Bank 9.6% 9.1% Book value per common share$29.33 $26.65 (1) Capital ratios are estimated for the current period, subject to regulatory filings. The Company elected the three-year phase in option for the day-one impact of ASU 2016-13 for current expected credit losses ("CECL") to regulatory capital. Beginning in 2023, the Company adjusted retained earnings, allowance for credit losses includable in tier 2 capital and the deferred tax assets from temporary differences in risk weighted assets by the permitted percentage of the day-one impact from adopting the CECL standard. ORRSTOWN FINANCIAL SERVICES, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands, except per share amounts)September 30, 2025 December 31, 2024Assets Cash and due from banks$60,970 $51,026 Interest-bearing deposits with banks 123,176 197,848 Cash and cash equivalents 184,146 248,874 Restricted investments in bank stocks 24,111 20,232 Securities available for sale (amortized cost of $912,760 and $864,920 at September 30, 2025 and December 31, 2024, respectively) 890,357 829,711 Loans held for sale, at fair value 6,026 6,614 Loans 3,979,736 3,931,214 Less: Allowance for credit losses (48,105) (48,689)Net loans 3,931,631 3,882,525 Premises and equipment, net 51,312 50,217 Cash surrender value of life insurance 146,020 143,854 Goodwill 69,751 68,106 Other intangible assets, net 40,338 47,765 Accrued interest receivable 20,443 21,058 Deferred tax assets, net 34,100 42,647 Other assets 71,998 79,986 Total assets$5,470,233 $5,441,589 Liabilities Deposits: Noninterest-bearing$901,557 $894,176 Interest-bearing 3,632,003 3,728,920 Total deposits 4,533,560 4,623,096 Securities sold under agreements to repurchase and federal funds purchased 32,501 25,863 FHLB advances and other borrowings 209,218 115,364 Subordinated notes and trust preferred debt 36,970 68,680 Other liabilities 86,048 91,904 Total liabilities 4,898,297 4,924,907 Shareholders’ Equity Preferred stock, $1.25 par value per share; 500,000 shares authorized; no shares issued or outstanding — — Common stock, no par value—$0.05205 stated value per share; 50,000,000 shares authorized; 19,712,347 shares issued and 19,500,983 outstanding at September 30, 2025; 19,722,640 shares issued and 19,389,967 outstanding at December 31, 2024 1,026 1,027 Additional paid—in capital 423,624 423,274 Retained earnings 170,526 126,540 Accumulated other comprehensive loss (17,538) (26,316)Treasury stock— 211,364 and 332,673 shares, at cost at September 30, 2025 and December 31, 2024, respectively (5,702) (7,843)Total shareholders’ equity 571,936 516,682 Total liabilities and shareholders’ equity$5,470,233 $5,441,589 ORRSTOWN FINANCIAL SERVICES, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30,(Dollars in thousands, except per share amounts) 2025 2024 2025 2024 Interest income Loans $65,751 $70,647 $192,219 $142,417 Investment securities - taxable 9,367 9,005 27,717 18,588 Investment securities - tax-exempt 881 883 2,634 2,641 Short-term investments 1,123 2,452 4,904 5,272 Total interest income 77,122 82,987 227,474 168,918 Interest expense Deposits 22,639 28,603 69,754 57,384 Securities sold under agreements to repurchase and federal funds purchased 107 96 297 148 FHLB advances and other borrowings 1,791 1,154 3,939 3,780 Subordinated notes and trust preferred debt 1,597 1,437 4,223 2,925 Total interest expense 26,134 31,290 78,213 64,237 Net interest income 50,988 51,697 149,261 104,681 Provision for credit losses - loans 396 14,115 51 15,348 Recovery of credit losses - unfunded loan commitments — (434) (100) (557)Net interest income after net recovery of credit losses 50,592 38,016 149,310 89,890 Noninterest income Service charges 2,997 2,360 8,022 4,843 Interchange income 1,620 1,779 4,488 3,651 Swap fee income 816 505 1,879 1,079 Wealth management income 5,277 5,037 15,959 11,451 Mortgage banking activities 522 491 1,302 1,318 Investment securities gains 50 271 71 254 Other income 2,100 1,943 6,200 3,592 Total noninterest income 13,382 12,386 37,921 26,188 Noninterest expenses Salaries and employee benefits 21,439 27,190 63,191 54,137 Occupancy, furniture and equipment 4,075 4,333 12,961 9,677 Data processing 1,116 2,046 3,005 4,548 Advertising and bank promotions 154 537 1,730 1,709 FDIC insurance 652 862 2,150 1,722 Professional services 1,703 1,119 5,545 2,551 Taxes other than income 828 503 2,065 1,046 Intangible asset amortization 2,410 2,464 7,417 2,904 Merger-related expenses — 16,977 2,617 18,784 Restructuring expenses — 257 91 257 Other operating expenses 3,920 4,011 11,315 8,072 Total noninterest expenses 36,297 60,299 112,087 105,407 Income (loss) before income tax expense (benefit) 27,677 (9,897) 75,144 10,671 Income tax expense (benefit) 5,812 (1,994) 15,780 2,305 Net income (loss) $21,865 $(7,903) $59,364 $8,366 Share information: Basic earnings (loss) per share $1.14 $(0.41) $3.09 $0.63 Diluted earnings (loss) per share $1.13 $(0.41) $3.07 $0.62 Dividends paid per share $0.27 $0.23 $0.79 $0.63 Weighted average shares - basic 19,224 19,088 19,185 13,298 Weighted average shares - diluted 19,364 19,226 19,345 13,441 ANALYSIS OF NET INTEREST INCOME Average Balances and Interest Rates, Taxable-Equivalent Basis (Unaudited) Three Months Ended 9/30/2025 6/30/2025 3/31/2025 12/31/2024 9/30/2024 Taxable- Taxable- Taxable- Taxable- Taxable- Taxable- Taxable- Taxable- Taxable- Taxable- Average Equivalent Equivalent Average Equivalent Equivalent Average Equivalent Equivalent Average Equivalent Equivalent Average Equivalent Equivalent(In thousands)Balance Interest Rate Balance Interest Rate Balance Interest Rate Balance Interest Rate Balance Interest RateAssets Federal funds sold & interest-bearing bank balances$101,728 $1,123 4.38% $136,106 $1,513 4.46% $203,347 $2,268 4.52% $199,236 $2,492 4.96% $184,465 $2,452 5.29%Investment securities(1)(2) 906,399 10,593 4.67 904,119 10,626 4.70 865,126 10,052 4.65 849,389 9,887 4.66 849,700 10,123 4.77 Loans(1)(3)(4)(5) 3,979,044 65,975 6.58 3,894,978 63,246 6.52 3,909,694 63,641 6.59 3,961,269 68,073 6.82 3,989,259 70,849 7.07 Total interest-earning assets 4,987,171 77,691 6.19 4,935,203 75,385 6.13 4,978,167 75,961 6.17 5,009,894 80,452 6.38 5,023,424 83,424 6.61 Other assets 433,659 439,569 447,530 454,271 491,719 Total assets$5,420,830 $5,374,772 $5,425,697 $5,464,165 $5,515,143 Liabilities and Shareholders' Equity Interest-bearing demand deposits$2,450,034 14,145 2.29 $2,463,687 13,880 2.26 $2,473,543 14,156 2.32 $2,522,885 15,575 2.45 $2,554,743 16,165 2.52 Savings deposits 264,761 164 0.25 269,309 165 0.25 273,313 165 0.25 272,718 166 0.24 283,337 148 0.21 Time deposits 897,416 8,330 3.68 914,108 8,810 3.87 970,588 9,939 4.15 998,963 11,109 4.41 1,014,628 12,290 4.82 Total interest-bearing deposits 3,612,211 22,639 2.49 3,647,104 22,855 2.51 3,717,444 24,260 2.65 3,794,566 26,850 2.81 3,852,708 28,603 2.95 Securities sold under agreements to repurchase and federal funds purchased 27,772 107 1.53 25,917 106 1.64 26,163 84 1.30 21,572 67 1.23 23,075 96 1.66 FHLB advances and other borrowings 168,939 1,791 4.21 104,068 1,030 3.97 112,859 1,118 4.02 115,373 1,165 4.01 115,388 1,154 3.98 Subordinated notes and trust preferred debt 68,749 1,597 9.21 68,910 1,330 7.74 68,739 1,296 7.65 68,571 1,360 7.88 68,399 1,437 8.36 Total interest-bearing liabilities 3,877,671 26,134 2.67 3,845,999 25,321 2.64 3,925,205 26,758 2.76 4,000,082 29,442 2.92 4,059,570 31,290 3.07 Noninterest-bearing demand deposits 902,128 904,031 887,726 849,999 807,886 Other liabilities 89,086 89,058 89,077 97,685 110,017 Total liabilities 4,868,885 4,839,088 4,902,008 4,947,766 4,977,473 Shareholders' equity 551,945 535,684 523,689 516,399 537,670 Total$5,420,830 $5,374,772 $5,425,697 $5,464,165 $5,515,143 Taxable-equivalent net interest income / net interest spread 51,557 3.52% 50,064 3.49% 49,203 3.41% 51,010 3.46% 52,134 3.55%Taxable-equivalent net interest margin 4.11% 4.07% 4.00% 4.05% 4.14%Taxable-equivalent adjustment (569) (552) (442) (437) (437) Net interest income $50,988 $49,512 $48,761 $50,573 $51,697 Ratio of average interest-earning assets to average interest-bearing liabilities 129% 128% 127% 125% 124% NOTES: (1) Yields and interest income on tax-exempt assets have been computed on a taxable-equivalent basis assuming a 21% tax rate.(2) Average balance of investment securities is computed at fair value.(3) Average balances include nonaccrual loans.(4) Interest income on loans includes prepayment and late fees, where applicable.(5) Interest income on loans includes accretion on purchase accounting marks of $5.3 million, $4.9 million, $6.6 million, $7.6 million, and $7.3 million for the three months ended September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024 and September 30, 2024, respectively. ANALYSIS OF NET INTEREST INCOME Average Balances and Interest Rates, Taxable-Equivalent Basis (Unaudited) (continued) Nine Months Ended September 30, 2025 September 30, 2024 Taxable- Taxable- Taxable- Taxable- Average Equivalent Equivalent Average Equivalent Equivalent(In thousands)Balance Interest Rate Balance Interest RateAssets Federal funds sold & interest-bearing bank balances$146,688 $4,904 4.47% $134,136 $5,272 5.25%Investment securities (1)(2) 892,033 31,379 4.69 636,781 21,931 4.60 Loans (1)(3)(4)(5)(6) 3,928,159 192,858 6.56 2,878,171 142,921 6.63 Total interest-earning assets 4,966,880 229,141 6.17 3,649,088 170,124 6.23 Other assets 440,153 298,334 Total assets$5,407,033 $3,947,422 Liabilities and Shareholders' Equity Interest-bearing demand deposits$2,462,336 42,181 2.29 $1,927,337 35,475 2.46 Savings deposits 268,966 494 0.25 206,552 432 0.28 Time deposits 927,232 27,079 3.90 642,959 21,477 4.46 Total interest-bearing deposits 3,658,534 69,754 2.55 2,776,848 57,384 2.76 Securities sold under agreements to repurchase and federal funds purchased 26,623 297 1.49 16,191 148 1.22 FHLB advances and other borrowings 128,827 3,939 4.09 122,604 3,780 4.12 Subordinated notes and trust preferred debt 68,799 4,223 8.21 44,294 2,925 8.82 Total interest-bearing liabilities 3,882,783 78,213 2.69 2,959,937 64,237 2.90 Noninterest-bearing demand deposits 898,015 550,407 Other liabilities 89,025 76,846 Total liabilities 4,869,823 3,587,190 Shareholders' equity 537,210 360,232 Total liabilities and shareholders' equity$5,407,033 $3,947,422 Taxable-equivalent net interest income / net interest spread 150,928 3.47% 105,887 3.33%Taxable-equivalent net interest margin 4.06% 3.88%Taxable-equivalent adjustment (1,667) (1,206) Net interest income $149,261 $104,681 Ratio of average interest-earning assets to average interest-bearing liabilities 128% 123% NOTES TO ANALYSIS OF NET INTEREST INCOME: (1) Yields and interest income on tax-exempt assets have been computed on a taxable-equivalent basis assuming a 21% tax rate.(2) Average balance of investment securities is computed at fair value.(3) Average balances include nonaccrual loans.(4) Interest income on loans includes prepayment and late fees, where applicable.(5) Interest income on loans includes interest recovered of $1.6 million from the payoff of a commercial real estate loan on nonaccrual status for the nine months ended September 30, 2024.(6) Interest income on loans includes accretion on purchase accounting marks of $16.7 million and $7.6 million for the nine months ended September 30, 2025 and 2024, respectively. ORRSTOWN FINANCIAL SERVICES, INC. HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited) (In thousands)September 30,2025 June 30,2025 March 31,2025 December 31,2024 September 30,2024Profitability for the quarter: Net interest income$50,988 $49,512 $48,761 $50,573 $51,697 Provision for (Recovery of) credit losses 396 109 (554) 1,755 13,681 Noninterest income 13,382 12,915 11,624 11,247 12,386 Noninterest expenses 36,297 37,614 38,176 42,930 60,299 Income (loss) before income taxes 27,677 24,704 22,763 17,135 (9,897)Income tax expense (benefit) 5,812 5,256 4,712 3,451 (1,994)Net income (loss)$21,865 $19,448 $18,051 $13,684 $(7,903) Financial ratios: Return on average assets (1) 1.60% 1.45% 1.35% 1.00% (0.57)%Return on average assets, adjusted (1)(2)(3)n/a 1.51% 1.45% 1.22% 1.55%Return on average equity (1) 15.72% 14.56% 13.98% 10.54% (5.85)%Return on average equity, adjusted (1)(2)(3)n/a 15.12% 14.97% 12.86% 15.85%Net interest margin (1) 4.11% 4.07% 4.00% 4.05% 4.14%Efficiency ratio 56.4% 60.3% 63.2% 69.4% 94.1%Efficiency ratio, adjusted (2)(3)n/a 58.7% 60.5% 62.3% 60.2% Per share information: Income (loss) per common share: Basic$1.14 $1.01 $0.94 $0.72 $(0.41) Basic, adjusted (2)(3)n/a 1.05 1.01 0.87 1.12 Diluted 1.13 1.01 0.93 0.71 (0.41) Diluted, adjusted (2)(3)n/a 1.04 1.00 0.87 1.11 Book value 29.33 28.07 27.32 26.65 26.65 Tangible book value(3) 24.12 22.77 21.99 21.19 21.12 Average tangible common equity(3) 19.70 18.43 17.91 13.62 (6.49)Cash dividends paid 0.27 0.26 0.26 0.23 0.23 Average basic shares 19,224 19,173 19,157 19,118 19,088 Average diluted shares 19,364 19,342 19,328 19,300 19,226 (1) Annualized.(2) Ratio has been adjusted for non-recurring expenses for all periods presented prior to September 30, 2025.(3) Non-GAAP based financial measure. Please refer to Appendix A - Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations for a discussion of our use of non-GAAP based financial measures, including tables reconciling GAAP and non-GAAP financial measures appearing herein. ORRSTOWN FINANCIAL SERVICES, INC. HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited) (continued) (In thousands)September 30,2025 June 30,2025 March 31,2025 December 31,2024 September 30,2024Noninterest income: Service charges$2,997 $2,630 $2,395 $2,050 $2,360Interchange income 1,620 1,441 1,427 1,608 1,779Swap fee income 816 669 394 597 505Wealth management income 5,277 5,267 5,415 4,902 5,037Mortgage banking activities 522 478 302 517 491Other income 2,100 2,422 1,678 1,578 1,943Investment securities gains (losses) 50 8 13 (5) 271Total noninterest income$13,382 $12,915 $11,624 $11,247 $12,386 Noninterest expenses: Salaries and employee benefits$21,439 $21,364 $20,388 $22,444 $27,190Occupancy, furniture and equipment 4,075 4,211 4,675 4,893 4,333Data processing 1,116 965 924 1,540 2,046Advertising and bank promotions 154 1,077 499 878 537FDIC insurance 652 674 824 955 862Professional services 1,703 2,016 1,826 1,591 1,119Taxes other than income 828 295 942 (312) 503Intangible asset amortization 2,410 2,472 2,535 2,838 2,464Provision for legal settlement — — — 478 —Merger-related expenses — 968 1,649 3,887 16,977Restructuring expenses — — 91 39 257Other operating expenses 3,920 3,572 3,823 3,699 4,011Total noninterest expenses$36,297 $37,614 $38,176 $42,930 $60,299 HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited) (continued) (In thousands)September 30,2025 June 30,2025 March 31,2025 December 31,2024 September 30,2024Balance Sheet at quarter end: Cash and cash equivalents$184,146 $149,377 $287,120 $248,874 $236,780 Restricted investments in bank stocks 24,111 21,204 19,693 20,232 20,247 Securities available for sale 890,357 885,373 855,456 829,711 826,828 Loans held for sale, at fair value 6,026 5,206 5,261 6,614 3,561 Loans: Commercial real estate: Owner occupied 629,481 622,315 617,854 633,567 622,726 Non-owner occupied 1,254,959 1,203,038 1,157,383 1,160,238 1,164,501 Multi-family 234,782 239,388 257,724 274,135 276,296 Non-owner occupied residential 163,138 165,479 168,354 179,512 190,786 Agricultural 118,596 124,291 134,916 125,156 129,486 Commercial and industrial 479,929 487,063 455,494 451,384 471,983 Acquisition and development: 1-4 family residential construction 41,141 38,490 40,621 47,432 56,383 Commercial and land development 195,158 198,889 227,434 241,424 262,317 Municipal 28,664 28,693 30,780 30,044 27,960 Total commercial loans 3,145,848 3,107,646 3,090,560 3,142,892 3,202,438 Residential mortgage: First lien 476,006 469,569 464,642 460,297 451,195 Home equity – term 5,800 5,784 9,224 5,988 6,508 Home equity – lines of credit 311,458 305,968 295,820 303,561 303,165 Other - term(1) 23,737 25,384 — — — Installment and other loans 16,887 17,028 15,739 18,476 18,131 Total loans 3,979,736 3,931,379 3,875,985 3,931,214 3,981,437 Allowance for credit losses (48,105) (47,898) (47,804) (48,689) (49,630)Net loans held for investment 3,931,631 3,883,481 3,828,181 3,882,525 3,931,807 Goodwill 69,751 69,751 68,106 68,106 70,655 Other intangible assets, net 40,338 42,748 45,230 47,765 46,144 Total assets 5,470,233 5,387,645 5,441,586 5,441,589 5,470,589 Total deposits 4,533,560 4,516,625 4,633,716 4,623,096 4,650,853 FHLB advances and other borrowings and Securities sold under agreements to repurchase 241,719 166,381 123,480 141,227 137,310 Subordinated notes and trust preferred debt 36,970 69,021 68,850 68,680 68,510 Total shareholders' equity 571,936 548,448 532,936 516,682 516,206 (1) Other - term includes property assessed clean energy ("PACE") loans. HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited) (continued) September 30,2025 June 30,2025 March 31,2025 December 31,2024 September 30,2024Capital and credit quality measures(1): Total risk-based capital: Orrstown Financial Services, Inc. 13.1% 13.3% 13.1% 12.4% 12.4%Orrstown Bank 12.9% 13.3% 13.0% 12.4% 12.2%Tier 1 risk-based capital: Orrstown Financial Services, Inc. 11.3% 11.1% 10.8% 10.2% 10.0%Orrstown Bank 11.8% 12.1% 11.9% 11.2% 11.0%Tier 1 common equity risk-based capital: Orrstown Financial Services, Inc. 11.1% 10.9% 10.6% 10.0% 9.8%Orrstown Bank 11.8% 12.1% 11.9% 11.2% 11.0%Tier 1 leverage capital: Orrstown Financial Services, Inc. 9.3% 9.0% 8.6% 8.3% 8.0%Orrstown Bank 9.6% 9.8% 9.5% 9.1% 8.8% Average equity to average assets 10.18% 9.97% 9.65% 9.45% 9.75%Allowance for credit losses to total loans 1.21% 1.22% 1.23% 1.24% 1.25%Total nonaccrual loans to total loans 0.66% 0.57% 0.59% 0.61% 0.68%Nonperforming assets to total assets 0.48% 0.42% 0.42% 0.45% 0.49%Allowance for credit losses to nonaccrual loans 184% 214% 210% 202% 184% Other information: Net charge-offs$189 $115 $331 $3,002 $269 Classified loans 64,089 65,754 76,211 88,628 105,465 Nonperforming and other risk assets: Nonaccrual loans 26,191 22,423 22,727 24,111 26,927 Other real estate owned — — 138 138 138 Total nonperforming assets 26,191 22,423 22,865 24,249 27,065 Financial difficulty modifications still accruing 1,245 5,759 5,127 4,897 9,497 Loans past due 90 days or more and still accruing 497 1,312 400 641 337 Total nonperforming and other risk assets$27,933 $29,494 $28,392 $29,787 $36,899 (1) Capital ratios are estimated for the current period, subject to regulatory filings. The Company elected the three-year phase in option for the day-one impact of ASU 2016-13 for current expected credit losses ("CECL") to regulatory capital. Beginning in 2023, the Company adjusted retained earnings, allowance for credit losses includable in tier 2 capital and the deferred tax assets from temporary differences in risk weighted assets by the permitted percentage of the day-one impact from adopting the new CECL standard. Appendix A- Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations Management believes providing certain other “non-GAAP” financial information will assist investors in their understanding of the effect on recent financial results from non-recurring charges. As a result of acquisitions, the Company has intangible assets consisting of goodwill, core deposit and other intangible assets, which totaled $110.1 million and $115.9 million at September 30, 2025 and December 31, 2024, respectively. In addition, during the three months ended September 30, 2025, June 30, 2025, March, 31, 2025, December 31, 2024 and September 30, 2024, the Company incurred zero, $1.0 million, $1.6 million, $3.9 million, and $17.0 million in merger-related expenses, respectively. During the three months ended December 31, 2024 and September 30, 2024, the Company incurred other non-recurring charges totaling $0.5 million and $20.2 million, respectively. Tangible book value per common share, tangible common equity and the impact of the non-recurring expenses on net income and associated ratios, as used by the Company in this earnings release, are determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). While we believe this information is a useful supplement to GAAP based measures presented in this earnings release, readers are cautioned that this non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of our results and financial condition as reported under GAAP, nor are such measures necessarily comparable to non-GAAP performance measures that may be presented by other companies. This supplemental presentation should not be construed as an inference that our future results will be unaffected by similar adjustments to be determined in accordance with GAAP. The following tables present the computation of each non-GAAP based measure: (In thousands) Tangible Book Value per Common Share September 30,2025 June 30,2025 March 31,2025 December 31,2024 September 30,2024Shareholders' equity (most directly comparable GAAP-based measure) $571,936 $548,448 $532,936 $516,682 $516,206 Less: Goodwill 69,751 69,751 68,106 68,106 70,655 Other intangible assets 40,338 42,748 45,230 47,765 46,144 Related tax effect (8,471) (8,977) (9,498) (10,031) (9,690)Tangible common equity (non-GAAP) $470,318 $444,926 $429,098 $410,842 $409,097 Common shares outstanding 19,501 19,536 19,510 19,390 19,373 Book value per share (most directly comparable GAAP-based measure) $29.33 $28.07 $27.32 $26.65 $26.65 Intangible assets per share 5.21 5.30 5.33 5.46 5.53 Tangible book value per share (non-GAAP) $24.12 $22.77 $21.99 $21.19 $21.12 Return on Average Common Equity September 30,2025 June 30,2025 March 31,2025 December 31,2024 September 30,2024Average shareholders' equity $551,945 $535,684 $523,689 $516,399 $537,670Less: Average goodwill 69,751 68,126 68,106 71,477 36,034Less: Average other intangible assets, gross 41,809 44,304 46,864 45,319 17,393Average tangible equity $440,385 $423,254 $408,719 $399,603 $484,243Return on average tangible equity 19.70% 18.43% 17.91% 13.62% (6.49)% (In thousands)Three Months Ended Nine Months EndedAdjusted Ratios for Non-recurring ChargesSeptember 30,2025 June 30, 2025 March 31,2025 December 31,2024 September 30,2024 September 30,2025 September 30,2024Net income (loss) (A) - most directly comparable GAAP-based measure$21,865 $19,448 $18,051 $13,684 $(7,903) $59,364 $8,366 Plus: Merger-related expenses (B) — 968 1,649 3,887 16,977 2,617 18,784 Plus: Executive retirement expenses (B) — — — 35 4,758 — 4,758 Plus: Provision for credit losses on non-PCD loans (B) — — — — 15,504 — 15,504 Plus: Provision for legal settlement (B) — — — 478 — — — Less: Related tax effect (C) — (221) (368) (1,386) (7,915) (589) (8,056)Adjusted net income (D=A+B-C) - Non-GAAP$21,865 $20,195 $19,332 $16,698 $21,421 $61,392 $39,356 Average assets (E)$5,420,830 $5,374,772 $5,425,697 $5,464,165 $5,515,143 $5,407,033 $3,947,422 Return on average assets (= A / E) - most directly comparable GAAP-based measure (1) 1.60% 1.45% 1.35% 1.00% (0.57)% 1.47% 0.28%Return on average assets, adjusted (= D / E) - Non-GAAP (1) 1.60% 1.51% 1.45% 1.22% 1.55% 1.52% 1.33% Average equity (F)$551,945 $535,684 $523,689 $516,399 $537,670 $537,210 $360,232 Return on average equity (= A / F) - most directly comparable GAAP-based measure (1) 15.72% 14.56% 13.98% 10.54% (5.85)% 14.77% 3.10%Return on average equity, adjusted (= D / F) - Non-GAAP (1) 15.72% 15.12% 14.97% 12.86% 15.85% 15.28% 14.59% Weighted average shares - basic (G) - most directly comparable GAAP-based measure 19,224 19,173 19,157 19,118 19,088 19,185 13,298 Basic earnings (loss) per share (= A / G) - most directly comparable GAAP-based measure$1.14 $1.01 $0.94 $0.72 $(0.41) $3.09 $0.63 Basic earnings per share, adjusted (= D / G) - Non-GAAP$1.14 $1.05 $1.01 $0.87 $1.12 $3.20 $2.96 Weighted average shares - diluted (H) - most directly comparable GAAP-based measure 19,364 19,342 19,328 19,300 19,226 19,345 13,441 Diluted earnings (loss) per share (= A / H) - most directly comparable GAAP-based measure$1.13 $1.01 $0.93 $0.71 $(0.41) $3.07 $0.62 Diluted earnings per share, adjusted (= D / H) - Non-GAAP$1.13 $1.04 $1.00 $0.87 $1.11 $3.17 $2.93 continued(1) Annualized Three Months Ended Nine Months Ended September 30,2025 June 30, 2025 March 31,2025 December 31,2024 September 30,2024 September 30,2025 September 30,2024Noninterest expense (I) - most directly comparable GAAP-based measure$36,297 $37,614 $38,176 $42,930 $60,299 $112,087 $105,407 Less: Merger-related expenses (B) — (968) (1,649) (3,887) (16,977) (2,617) (18,784)Less: Executive retirement expenses (B) — — — (35) (4,758) — (4,758)Less: Provision for legal settlement (B) — — — (478) — — — Adjusted noninterest expense (J = I - B) - Non-GAAP$36,297 $36,646 $36,527 $38,531 $38,564 $109,470 $81,865 Net interest income (K)$50,988 $49,512 $48,761 $50,573 $51,697 $149,261 $104,681 Noninterest income (L) 13,382 12,915 11,624 11,247 12,386 37,921 26,188 Total operating income (M = K + L)$64,370 $62,427 $60,385 $61,820 $64,083 $187,182 $130,869 Efficiency ratio (= I / M) - most directly comparable GAAP-based measure 56.4% 60.3% 63.2% 69.4% 94.1% 59.9% 80.5%Efficiency ratio, adjusted (= J / M) - Non-GAAP 56.4% 58.7% 60.5% 62.3% 60.2% 58.5% 62.6% (1) Annualized Appendix B- Investment Portfolio Concentrations The following table summarizes the credit ratings and collateral associated with the Company's investment security portfolio, excluding equity securities, at September 30, 2025: (In thousands) SectorPortfolio Mix Amortized Book Fair Value Credit Enhancement AAA AA A BBB BB NR Collateral / Guarantee TypeUnsecured ABS—% $2,700 $2,580 28% —% —% —% —% —% 100% Unsecured Consumer DebtStudent Loan ABS— 3,329 3,323 28 — — — — — 100 Seasoned Student LoansFederal Family Education Loan ABS8 73,927 73,552 11 — 47 33 7 13 — Federal Family Education Loan (1)PACE Loan ABS— 1,714 1,574 7 100 — — — — — PACE Loans (2)Non-Agency CMBS3 23,236 23,366 25 — — — — — 100 Non-Agency RMBS3 22,169 21,179 16 100 — — — — — Reverse Mortgages (3)Municipal - General Obligation11 99,301 92,050 17 77 6 — — — Municipal - Revenue13 120,030 108,063 — 82 12 — — 6 SBA ReRemic (5)— 1,734 1,717 — 100 — — — — SBA Guarantee (4)Small Business Administration— 3,930 4,001 — 100 — — — — SBA Guarantee (4)Agency MBS20 177,918 178,485 — 100 — — — — Residential Mortgages (4)Agency CMO40 360,574 359,449 — 100 — — — — U.S. Treasury securities2 20,033 18,803 — 100 — — — — U.S. Government Guarantee (4)Corporate bonds— 1,944 1,994 — — 52 48 — — 100% $912,539 $890,136 4% 85% 5% 1% 1% 4% (1) 97% guaranteed by U.S. government(2) PACE acronym represents Property Assessed Clean Energy loans(3) Non-agency reverse mortgages with current structural credit enhancements(4) Guaranteed by U.S. government or U.S. government agencies(5) SBA ReRemic acronym represents Re-Securitization of Real Estate Mortgage Investment Conduits Note: Ratings in table are the lowest of the six rating agencies (Standard & Poor's, Moody's, Fitch, Morningstar, DBRS and Kroll Bond Rating Agency). Standard & Poor's rates U.S. government obligations at AA+. About the Company With $5.5 billion in assets, Orrstown Financial Services, Inc. and its wholly-owned subsidiary, Orrstown Bank, provide a wide range of consumer and business financial services in Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry and York Counties, Pennsylvania and Anne Arundel, Baltimore, Harford, Howard, and Washington Counties, Maryland, as well as Baltimore City, Maryland. The Company’s lending area also includes counties in Pennsylvania, Maryland, Delaware, Virginia and West Virginia within a 75-mile radius of the Company's executive and administrative offices as well as the District of Columbia. 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 common stock is traded on Nasdaq (ORRF). For more information about Orrstown Financial Services, Inc. and Orrstown Bank, visit www.orrstown.com. Cautionary Note Regarding Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements reflect the current views of the Company's management with respect to, among other things, future events and the Company's financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates, predictions or projections about events or the Company's industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company's control. Accordingly, the Company cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements and there can be no assurances that the Company will achieve the desired level of new business development and new loans, growth in the balance sheet and fee-based revenue lines of business, cost savings initiatives and continued reductions in risk assets or mitigation of losses in the future. Factors which could cause the actual results to differ from those expressed or implied by the forward-looking statements include, but are not limited to, the following: interest rate changes or volatility; general economic conditions (including inflation and concerns about liquidity) on a national basis or in the local markets in which the Company operates; ineffectiveness of the Company’s strategic growth plan due to changes in current or future market conditions; the effects of competition and how it may impact our community banking model, including industry consolidation and development of competing financial products and services; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in, and evolving interpretations of, existing and future laws and regulations; changes in credit quality; inability to raise capital, if necessary, under favorable conditions; volatility in the securities markets; the demand for our products and services; deteriorating economic conditions; geopolitical tensions; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters and future pandemics; expenses associated with litigation and legal proceedings; and other risks and uncertainties, including those detailed in our Annual Report on Form 10-K for the year ended December 31, 2024 under the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in subsequent filings made with the Securities and Exchange Commission. The foregoing list of factors is not exhaustive. If one or more events related to these or other risks or uncertainties materializes, or if the Company's underlying assumptions prove to be incorrect, actual results may differ materially from what the Company anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and the Company disclaims any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New risks and uncertainties arise from time to time, and it is not possible for the Company to predict those events or how they may affect it. In addition, the Company cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that the Company or persons acting on the Company's behalf may issue. The review period for subsequent events extends up to and includes the filing date of a public company’s financial statements, when filed with the Securities and Exchange Commission. Accordingly, the consolidated financial information presented in this announcement is subject to change. Annualized, pro forma, projected and estimated numbers in this document are used for illustrative purposes only and are not forecasts and may not reflect actual results.

Orrstown Financial Services, Inc. Reports Third Quarter 2025 Results

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