Orrstown Financial Services reported net income of $21.5 million, or $1.11 per diluted share, for the quarter ended December 31, 2025, compared to $21.9 million, or $1.13 per share, in the prior quarter and $13.7 million, or $0.71 per share, a year ago. The company’s fourth‐quarter EPS surpassed the Zacks consensus estimate of $1.08. For the full year, net income climbed to a record $80.9 million, or $4.18 per share, from $22.1 million, or $1.48 per share, in 2024. On an adjusted basis (excluding non‐recurring items), annual net income rose to $82.9 million, or $4.28 per share, up from $56.1 million, or $3.76 per share, in the prior year.

Total loans increased by $41.0 million—a roughly 4% annualized gain—during the fourth quarter, with commercial and residential mortgage portfolios up by $27.3 million and $12.2 million, respectively. Classified loans declined by $5.7 million to $58.4 million. Investment securities grew by $62.3 million to $952.7 million, driven by $124.9 million in mortgage‐backed security purchases. Deposits were essentially flat at $4.5 billion, with growth in interest‐bearing demand and money‐market accounts offsetting declines in noninterest‐bearing and time deposits. The loan‐to‐deposit ratio edged up to 89%.

Return on average assets in Q4 stood at 1.55%, with return on average equity of 14.73%, compared to 1.60% and 15.72%, respectively, in Q3. Net interest margin on a tax‐equivalent basis narrowed to 4.00% from 4.11% sequentially, reflecting a 16 basis‐point decline in loan yields partially offset by a 6 basis‐point drop in funding costs. Purchase accounting accretion contributed 46 basis points to margin in the quarter. Noninterest income rose by $1.0 million to $14.4 million, led by wealth‐management and swap fees, while noninterest expenses increased by $1.1 million to $37.4 million due to higher healthcare and professional services costs.

Tangible common equity rose to 9.0% from 8.8% in the prior quarter, and tangible book value per share increased to $25.21 from $24.12. The board approved a quarterly cash dividend of $0.30 per share, reflecting a $0.03 increase and payable February 17, 2026 to holders of record as of February 10. The company exited the quarter with $274.7 million in borrowings and approximately $1.7 billion in unused liquidity facilities, positioning it to fund future loan growth and manage balance sheet flexibility.