Orrstown Financial Services delivered net income of $21.8 million in Q1, or $1.12 per diluted share, up from $21.5 million and $1.11 in Q4 and $18.1 million and $0.93 a year ago. Return on average assets reached 1.59% and ROE was 14.76%, while net interest margin stood at 3.90%, noninterest income rose $1.2 million to $15.6 million and noninterest expenses declined $0.7 million to $36.7 million.

Loans held for investment grew by $40.6 million to $4.1 billion, a 4% annualized increase driven by $31.5 million in commercial and $10.1 million in residential mortgages. Deposits climbed $98.7 million to $4.6 billion including gains across interest-bearing demand, non-interest demand, time and money market accounts, while borrowings fell $68.0 million from year-end levels.

Available-for-sale investment securities edged down $5.7 million to $947.0 million due to $23.4 million in paydowns and $6.8 million in unrealized losses, partially offset by $23.1 million in new purchases across agency and non-agency mortgage-backed and municipal securities. The portfolio’s duration lengthened slightly to 4.7 years from 4.6 years at December 31.

Tangible common equity rose to 9.2% from 9.0% and total risk-based capital improved to 13.5% from 13.3%, while tangible book value per share increased to $25.76 from $25.21. The board declared a $0.30 per share cash dividend payable May 12 to shareholders of record May 5.