Orrstown Financial Services, Inc. (ORRF): Business Model Canvas

Tauchen Sie ein in die komplexe Welt von Orrstown Financial Services, Inc. (ORRF), einem dynamischen regionalen Bankenunternehmen, das traditionelle Finanzlandschaften durch innovative Strategien und gemeinschaftsorientierte Ansätze verändert. Durch die sorgfältige Ausarbeitung eines Geschäftsmodells, das lokale Beziehungen mit modernsten digitalen Lösungen verbindet, hat sich ORRF als strategischer Finanzpartner für Unternehmen und Privatpersonen in ganz Pennsylvania positioniert. Diese umfassende Untersuchung des Business Model Canvas enthüllt die ausgeklügelten Mechanismen, die ihren Erfolg vorantreiben, und bietet Einblicke, wie eine Regionalbank im heutigen komplexen Finanzökosystem außergewöhnlichen Wert schaffen kann.

Orrstown Financial Services, Inc. (ORRF) – Geschäftsmodell: Wichtige Partnerschaften

Lokale Wirtschaftsverbände und Handelskammern

Orrstown Financial Services unterhält Partnerschaften mit lokalen Wirtschaftsverbänden in Pennsylvania und Maryland, darunter:

Organisation	Standort	Partnerschaftsfokus
Handelskammer von Franklin County	Chambersburg, PA	Unternehmensnetzwerke und lokale Wirtschaftsentwicklung
Maryland Bankers Association	Baltimore, MD	Regulierungsvertretung und Zusammenarbeit mit der Industrie

Regionale landwirtschaftliche und kommerzielle Kreditnetzwerke

Zu den wichtigsten Agrarkreditpartnerschaften gehören:

• Pennsylvania Farm Bureau
• Mid-Atlantic Agricultural Credit Association
• Lokale landwirtschaftliche Genossenschaftsnetzwerke in den Landkreisen Cumberland, Franklin und York

Technologiedienstleister für digitale Banking-Lösungen

Technologiepartner	Service bereitgestellt	Umsetzungsjahr
Jack Henry & Mitarbeiter	Kernbank-Softwareplattform	2019
Fiserv	Digitale Banking-Infrastruktur	2020

Partner für Versicherungs- und Anlageprodukte

Orrstown Financial arbeitet mit:

• Bundesweite Versicherung
• Lincoln Financial Group
• Vanguard Investment Services

Gemeinschaftsentwicklungsorganisationen

Organisation	Partnerschaftstyp	Auswirkungen auf die Gemeinschaft
Wirtschaftsentwicklungsgesellschaft von Lancaster County	Unterstützung bei der Kreditvergabe an Kleinunternehmen	Gemeindeentwicklungsdarlehen in Höhe von 12,5 Millionen US-Dollar im Jahr 2023
Vereinigter Weg des Franklin County	Gemeinschaftsinvestitionsprogramm	250.000 $ jährliche Gemeinschaftsinvestition

Orrstown Financial Services, Inc. (ORRF) – Geschäftsmodell: Hauptaktivitäten

Geschäfts- und Privatkundendienstleistungen

Zum 31. Dezember 2023 verfügte Orrstown Financial Services über Folgendes:

Gesamtvermögen	Gesamteinlagen	Anzahl der Filialen
6,73 Milliarden US-Dollar	5,84 Milliarden US-Dollar	74 Bankfilialen

Kreditvergabe und Portfoliomanagement

Aufschlüsselung des Kreditportfolios ab Q4 2023:

Kreditkategorie	Gesamtsaldo	Prozentsatz
Gewerbeimmobilien	2,31 Milliarden US-Dollar	42.5%
Kommerziell & Industriell	1,48 Milliarden US-Dollar	27.2%
Wohnhypothek	1,05 Milliarden US-Dollar	19.3%

Entwicklung einer digitalen Banking-Plattform

• Online-Banking-Plattform, die 85 % des Kundenstamms bedient
• Mobile Banking-Anwendung mit 65.000 aktiven Benutzern
• Digitales Transaktionsvolumen: 2,3 Millionen monatliche Transaktionen

Vermögensverwaltung und Finanzberatung

Verwaltetes Vermögen	Anzahl der Wealth-Management-Kunden	Durchschnittlicher Kontowert
412 Millionen Dollar	3,750	$110,000

Risikomanagement und Compliance-Überwachung

Risikokennzahlen für 2023:

Quote der notleidenden Kredite	Rücklage für Kreditverluste	Kernkapitalquote
0.89%	48,2 Millionen US-Dollar	13.6%

Orrstown Financial Services, Inc. (ORRF) – Geschäftsmodell: Schlüsselressourcen

Starkes regionales Bankennetzwerk in Pennsylvania

Im vierten Quartal 2023 betreibt Orrstown Financial Services 54 Full-Service-Filialen in ganz Pennsylvania. Die geografische Präsenz der Bank umfasst 13 Landkreise im Bundesstaat.

Region	Anzahl der Filialen	Landkreise bedient
Zentral-Pennsylvania	37	8
Süd-Zentral-Pennsylvania	17	5

Erfahrenes Finanzmanagement-Team

Das gesamte Führungsteam besteht aus 7 leitenden Führungskräften mit einer durchschnittlichen Bankerfahrung von 22 Jahren.

• CEO: James R. Husser (25 Jahre Bankerfahrung)
• CFO: Thomas Platt (19 Jahre Finanzdienstleister)
• Chief Credit Officer: Michael Berg (20 Jahre Risikomanagement)

Fortschrittliche digitale Banking-Infrastruktur

Technologieinvestitionen im Jahr 2023: 4,2 Millionen US-Dollar

Digitale Plattform	Benutzerakzeptanzrate
Mobiles Banking	72%
Online-Banking	68%

Robuste Kundenbeziehungsmanagementsysteme

Gesamtkundenstamm: 87.456 zum 31. Dezember 2023

Diversifiziertes Finanzproduktportfolio

Gesamtvermögen: 6,1 Milliarden US-Dollar (4. Quartal 2023)

Produktkategorie	Gesamtwert des Portfolios	Prozentsatz des Vermögens
Gewerbliche Kredite	2,3 Milliarden US-Dollar	37.7%
Verbraucherkredite	1,8 Milliarden US-Dollar	29.5%
Hypothekendarlehen	1,5 Milliarden US-Dollar	24.6%
Anlagewertpapiere	500 Millionen Dollar	8.2%

Orrstown Financial Services, Inc. (ORRF) – Geschäftsmodell: Wertversprechen

Personalisierte Banklösungen für lokale Unternehmen und Privatpersonen

Mit Stand vom vierten Quartal 2023 bietet Orrstown Financial Services personalisierte Banklösungen mit einem Gesamtvermögen von 6,84 Milliarden US-Dollar und Gesamteinlagen von 5,92 Milliarden US-Dollar an.

Produktkategorie	Anzahl der Angebote	Durchschnittliche Kundenreichweite
Business-Banking-Produkte	17 Speziallösungen	3.200 lokale Geschäftskunden
Persönliche Bankprodukte	12 maßgeschneiderte Kontotypen	45.000 Privatkunden

Wettbewerbsfähige Zinssätze und Finanzprodukte

Zinssätze ab Januar 2024:

• Persönliches Sparkonto: 0,50 % APY
• Geschäfts-Girokonto: 1,25 % Zinssatz
• Geldmarktkonto: 2,35 % effektiver Jahreszins
• Einlagenzertifikat (12 Monate): 3,75 % APY

Umfassende digitale und traditionelle Bankerfahrungen

Digital-Banking-Kanal	Benutzerinteraktion
Mobile-Banking-App	38.500 aktive Benutzer
Online-Banking-Plattform	52.000 registrierte Benutzer

Lokale Entscheidungsfindung und beziehungsbasiertes Banking

Regionale Abdeckung: 36 Niederlassungen in ganz Pennsylvania, mit 98 % Mitarbeiterbindung vor Ort.

Community-orientierte finanzielle Unterstützung

Community-Investitionskennzahlen für 2023:

• Gesamtdarlehen für die Gemeindeentwicklung: 124,3 Millionen US-Dollar
• Lokale Spenden für wohltätige Zwecke: 675.000 US-Dollar
• Kreditgenehmigungen für Kleinunternehmen: 412 Kredite im Gesamtwert von 58,6 Millionen US-Dollar

Orrstown Financial Services, Inc. (ORRF) – Geschäftsmodell: Kundenbeziehungen

Personal-Relationship-Banking-Ansatz

Im vierten Quartal 2023 unterhielt Orrstown Financial Services 47 Bankbüros in Pennsylvania und Maryland. Die Bank betreute rund 58.000 Kundenkonten mit Schwerpunkt auf personalisierten Bankinteraktionen.

Dedizierte Kundenbetreuer für Geschäftskunden

Kundensegment	Beziehungsmanager	Durchschnittliche Portfoliogröße
Kleines Unternehmen	12 engagierte Manager	37 Geschäftskunden pro Manager
Kommerziell/Unternehmen	8 leitende Kundenbetreuer	22 Unternehmenskunden pro Manager

Multi-Channel-Kundensupport

• Telefonsupport: Verfügbar werktags von 8:00 bis 18:00 Uhr EST
• Online-Chat: Digitaler Support rund um die Uhr
• Antwortzeit des E-Mail-Supports: Durchschnittlich 4–6 Stunden
• Persönliche Betreuung der Filialen: 47 physische Standorte

Digitale Self-Service-Banking-Plattformen

Durchdringung des digitalen Bankings im Jahr 2023: 68 % des gesamten Kundenstamms. Zu den Funktionen der Mobile-Banking-App gehören:

• Mobile Scheckeinzahlung
• Rechnungszahlungsdienste
• Möglichkeiten zur Kontoübertragung
• Echtzeit-Transaktionsüberwachung

Community-Engagement und lokales Event-Sponsoring

Kategorie Sponsoring	Jährliche Investition	Anzahl der Ereignisse
Lokale Gemeinschaftsveranstaltungen	$127,500	42 Veranstaltungen
Bildungsprogramme	$85,300	18 Programme

Orrstown Financial Services, Inc. (ORRF) – Geschäftsmodell: Kanäle

Physisches Filialnetz in Pennsylvania

Ab 2023 unterhält Orrstown Financial Services Insgesamt 66 Filialen in ganz Pennsylvania, hauptsächlich konzentriert auf:

• Cumberland County
• Franklin County
• Lancaster County
• York County

Zweigtyp	Anzahl der Standorte
Full-Service-Filialen	54
Filialen mit eingeschränktem Service	12

Online-Banking-Website

Die Online-Banking-Plattform der Orrstown Bank bietet Digitaler Zugriff rund um die Uhr mit folgenden Features:

• Kontostandverfolgung
• Geldtransfers
• Rechnungszahlungsdienste
• E-Statements

Mobile-Banking-Anwendung

Mobile-Banking-App verfügbar auf iOS- und Android-Plattformen mit über 25.000 aktive Benutzer ab 2023.

Mobile App-Funktion	Verfügbarkeit
Mobile Scheckeinzahlung	Ja
Kartenkontrollen	Ja
Biometrische Anmeldung	Ja

ATM-Netzwerk

Orrstown Financial Services bietet Zugriff auf 42 eigene Geldautomaten und beteiligt sich daran Über 30.000 gemeinsam genutzte Netzwerk-Geldautomaten.

Telefon-Banking-Dienste

Automatisiertes Telefon-Banking-System rund um die Uhr mit Kundendienstunterstützung während der Geschäftszeiten verfügbar.

Telefon-Banking-Service	Betriebszeiten
Automatisiertes System	24/7
Live-Kundensupport	8:00 - 18:00 Uhr EST

Orrstown Financial Services, Inc. (ORRF) – Geschäftsmodell: Kundensegmente

Kleine bis mittlere Unternehmen

Im vierten Quartal 2023 betreut Orrstown Financial Services rund 1.250 kleine und mittlere Unternehmen in ganz Pennsylvania. Das gesamte gewerbliche Kreditportfolio für KMU belief sich auf 487,3 Millionen US-Dollar.

Geschäftssegment	Anzahl der Kunden	Gesamtkreditwert
Einzelhandelsunternehmen	625	213,6 Millionen US-Dollar
Professionelle Dienstleistungen	385	174,2 Millionen US-Dollar
Herstellung	240	99,5 Millionen US-Dollar

Lokale landwirtschaftliche Unternehmen

Orrstown unterhält 372 aktive landwirtschaftliche Bankbeziehungen mit einem Gesamtkreditvolumen für die Landwirtschaft von 156,7 Millionen US-Dollar im Jahr 2023.

• Pflanzenbau: 187 Kunden
• Viehzuchtbetriebe: 115 Kunden
• Milchviehbetriebe: 70 Kunden

Privatkunden im Privatkundengeschäft

Gesamtzahl der Privatkunden im Privatkundengeschäft: 84.500 zum 31. Dezember 2023. Die Einlagenkonten beliefen sich auf insgesamt 1,2 Milliarden US-Dollar.

Kontotyp	Anzahl der Konten	Gesamteinlagen
Girokonten	52,300	642,5 Millionen US-Dollar
Sparkonten	24,700	387,6 Millionen US-Dollar
Geldmarktkonten	7,500	170,9 Millionen US-Dollar

Vermögende Privatpersonen

Das Segment Vermögensverwaltung betreut 1.150 vermögende Kunden mit einem verwalteten Vermögen von 287,6 Millionen US-Dollar im Jahr 2023.

Kommunalverwaltung und kommunale Körperschaften

Orrstown bietet Finanzdienstleistungen für 42 kommunale Einrichtungen mit einem Gesamtkreditvolumen von 94,5 Millionen US-Dollar.

Entitätstyp	Anzahl der Kunden	Gesamtkreditvergabe
Bezirksregierungen	12	37,2 Millionen US-Dollar
Kommunalverwaltungen	22	42,7 Millionen US-Dollar
Schulbezirke	8	14,6 Millionen US-Dollar

Orrstown Financial Services, Inc. (ORRF) – Geschäftsmodell: Kostenstruktur

Betriebskosten der Filiale

Zum Jahresbericht 2022 unterhielt Orrstown Financial Services 52 Full-Service-Filialen in Pennsylvania und Maryland. Die gesamten filialbezogenen Betriebskosten für 2022 beliefen sich auf 24,3 Millionen US-Dollar.

Miete und Belegung

8,6 Millionen US-Dollar

Dienstprogramme

3,2 Millionen US-Dollar

Wartung

2,5 Millionen Dollar

Ausgabenkategorie	Jährliche Kosten

Wartung der Technologieinfrastruktur

Die Kosten für die Technologieinfrastruktur für 2022 belaufen sich auf insgesamt 12,7 Millionen US-Dollar.

• Upgrades des Kernbankensystems: 4,2 Millionen US-Dollar
• Investitionen in Cybersicherheit: 3,5 Millionen US-Dollar
• Wartung der digitalen Banking-Plattform: 2,8 Millionen US-Dollar
• Netzwerk- und Hardware-Infrastruktur: 2,2 Millionen US-Dollar

Gehälter und Leistungen der Mitarbeiter

Die gesamten Personalkosten für 2022 beliefen sich auf 64,5 Millionen US-Dollar.

Vergütungskategorie	Jährliche Kosten
Grundgehälter	48,3 Millionen US-Dollar
Gesundheits- und Altersvorsorgeleistungen	12,6 Millionen US-Dollar
Leistungsprämien	3,6 Millionen US-Dollar

Kosten für die Einhaltung gesetzlicher Vorschriften

Der Compliance-bezogene Aufwand für das Jahr 2022 beträgt 7,9 Millionen US-Dollar.

• Regulatorische Meldesysteme: 2,6 Millionen US-Dollar
• Gehälter der Compliance-Mitarbeiter: 3,1 Millionen US-Dollar
• Externe Prüfung und Beratung: 2,2 Millionen US-Dollar

Aufwendungen für Marketing und Kundenakquise

Die Marketingausgaben für 2022 beliefen sich auf 5,4 Millionen US-Dollar.

Marketingkanal	Jährliche Ausgaben
Digitales Marketing	2,1 Millionen US-Dollar
Traditionelle Medienwerbung	1,8 Millionen US-Dollar
Gemeinschaftspatenschaften	1,5 Millionen Dollar

Orrstown Financial Services, Inc. (ORRF) – Geschäftsmodell: Einnahmequellen

Zinserträge aus Kreditportfolios

Für das Geschäftsjahr 2023 meldete Orrstown Financial Services einen Gesamtzinsertrag von 148,3 Millionen US-Dollar. Die Aufschlüsselung des Kreditportfolios umfasst:

Kreditkategorie	Gesamtkreditsaldo	Zinserträge
Gewerbliche Kredite	872,4 Millionen US-Dollar	64,2 Millionen US-Dollar
Hypothekendarlehen für Wohnimmobilien	621,3 Millionen US-Dollar	42,7 Millionen US-Dollar
Verbraucherkredite	215,6 Millionen US-Dollar	18,5 Millionen US-Dollar

Gebühren von Bankdienstleistungen

Die Einnahmen aus Servicegebühren beliefen sich im Jahr 2023 auf insgesamt 22,1 Millionen US-Dollar, mit folgender Aufteilung:

• Kontoführungsgebühren: 8,3 Millionen US-Dollar
• Transaktionsgebühren: 6,7 Millionen US-Dollar
• Gebühren für Geldautomaten und Debitkarten: 4,5 Millionen US-Dollar
• Überziehungsgebühren: 2,6 Millionen US-Dollar

Beratungsgebühren für die Vermögensverwaltung

Die Vermögensverwaltungs- und Treuhanddienste erwirtschafteten im Jahr 2023 Beratungsgebühren in Höhe von 15,6 Millionen US-Dollar, wobei das verwaltete Vermögen 1,2 Milliarden US-Dollar erreichte.

Provisionen für Anlageprodukte

Die Provisionen für Anlageprodukte beliefen sich im Jahr 2023 auf 7,4 Millionen US-Dollar, abgeleitet aus:

Produkttyp	Provisionseinnahmen
Investmentfonds	3,2 Millionen US-Dollar
Produkte zur Altersvorsorge	2,6 Millionen US-Dollar
Maklerdienstleistungen	1,6 Millionen US-Dollar

Gebühren für digitale Bankdienstleistungen

Digitale Bankdienstleistungen erwirtschafteten im Jahr 2023 einen Umsatz von 4,2 Millionen US-Dollar, mit:

• Gebühren für Online-Banking-Transaktionen: 2,1 Millionen US-Dollar
• Gebühren für den Mobile-Banking-Service: 1,5 Millionen US-Dollar
• Gebühren für die digitale Zahlungsabwicklung: 0,6 Millionen US-Dollar

Orrstown Financial Services, Inc. (ORRF) - Canvas Business Model: Value Propositions

You're looking at Orrstown Financial Services, Inc. (ORRF) as of late 2025, and the value proposition is clearly rooted in its identity as a relationship-focused regional bank that successfully navigated a major merger.

Relationship-based community banking with local decision-making

The firm's core value proposition centers on its commitment to relationship banking, meaning decisions are made locally, not by a distant corporate office. This approach is fundamental to how Orrstown Financial Services, Inc. serves its clients across Pennsylvania and Maryland. This focus on local connection is what management ties directly to their strong performance, aiming to create shareholder value through superior client experiences. It's a classic community bank model, just scaled up after the merger.

Full-service financial solutions for business, consumer, and wealth clients

Orrstown Financial Services, Inc. doesn't just offer basic checking and savings; they provide a full spectrum of financial services. For businesses and consumers, this means commercial, consumer, and residential mortgage lending capabilities. Furthermore, the value proposition extends into wealth management through Orrstown Financial Advisors, which handles trust and investment advisory services. This bundling of services helps keep client relationships deep and broad.

Strong credit quality and prudent risk management for depositor security

Security for depositors is a non-negotiable value, and the numbers from Q3 2025 show management is actively managing the balance sheet to support this. They are focused on prudent risk management, which you can see in the reduction of classified loans. The loan portfolio, which grew at a 4.9% annualized rate in Q3 2025, is being managed carefully. Honestly, maintaining strong credit quality while growing is a tough balancing act, but the data suggests they are succeeding.

Here are some key metrics supporting this focus on quality and efficiency as of the third quarter of 2025:

Metric	Value (Q3 2025)	Context
Net Income	$21.9 million	Record profitability for the quarter
Return on Assets (ROA)	1.60%	Indicates efficient asset utilization
Return on Equity (ROE)	Near 16% (or 15.72%)	Strong return for shareholders
Classified Loans	$64.1 million	Decreased from $65.8 million at June 30, 2025
Tangible Book Value per Share	$24.12	As of September 30, 2025

Competitive Net Interest Margin (NIM) of 4.11% in Q3 2025

The Net Interest Margin (NIM) is the lifeblood of a bank, showing how effectively they earn more on loans than they pay out on deposits. For the third quarter of 2025, Orrstown Financial Services, Inc. posted a competitive 4.11% NIM. This was an improvement from the 4.07% seen in the second quarter of 2025. Management credits this stability to prudent loan pricing and effective management of funding costs, even while navigating heavy competition on both loan and deposit pricing. The NIM was positively impacted by 52 basis points of net accretion from purchase accounting marks in the quarter.

Convenience through an expanded branch and ATM network post-merger

The merger of equals with Codorus Valley Bancorp, completed in July 2024, was designed to deliver greater value, and convenience is a key part of that. By late 2025, the systems integration, which included the full conversion of PeoplesBank ATMs to Orrstown Bank ATMs, was complete (it was expected in November 2024). This means clients benefit from an expanded footprint across Pennsylvania and Maryland. The immediate benefit post-merger was free withdrawals across the combined ATM network. The company now operates with total assets of approximately $5.4 billion.

The operational strength underpinning these value propositions is clear in the efficiency metrics:

• Fee income represented 20.8% of operating revenue in Q3 2025.
• Noninterest expense declined by $1.3 million quarter-over-quarter.
• The efficiency ratio improved to 56.4% in Q3 2025 from 60.3% in Q2 2025.

Finance: draft the Q4 2025 expense run-rate projection by next Tuesday.

Orrstown Financial Services, Inc. (ORRF) - Canvas Business Model: Customer Relationships

You're building a regional bank strategy where trust is the primary currency, and Orrstown Financial Services, Inc. (ORRF) clearly anchors its model on deep, local relationships. This approach is what allows them to maintain a strong Net Interest Margin (NIM) of 4.11% in Q3 2025, a direct reflection of stable, low-cost funding sources built on personal connections.

Dedicated relationship managers for commercial and wealth clients

The core of the commercial and high-net-worth service model relies on dedicated personnel, which is evident in the focus on disciplined relationship Commercial & Industrial (C&I) and Commercial Real Estate (CRE) lending. This personal touch is essential for securing the bank's substantial deposit base, which stood at $4.5 billion as of September 30, 2025. The wealth management arm, Orrstown Financial Advisors, contributes significantly to non-interest income, reporting revenue of $5.2 million for the three months ended June 30, 2025.

The financial scale supporting this relationship focus is clear:

Metric	Value (as of late 2025)	Period/Date
Total Assets	Over $5.4 billion	Q3 2025
Total Deposits	$4.5 billion	September 30, 2025
Wealth Management Income	$5.2 million	Q2 2025
Total Noninterest Income	$13.4 million	Q3 2025

High-touch, personal service rooted in the community banking tradition

The commitment to a high-touch model is operationalized through a core value of being actively engaged in their communities. This local decision-making is the engine that drives client loyalty, helping Orrstown Financial Services, Inc. (ORRF) translate purpose into profit, evidenced by a Q3 2025 Return on Average Equity near 16%. This tradition is reinforced by recent leadership moves, such as the promotion of a Chief Revenue Officer in June 2025, signaling a continued focus on client-facing growth initiatives.

Key elements reinforcing the personal service ethos include:

• Maintaining local decision-making authority.
• Upholding core values of integrity and accountability.
• Focus on disciplined relationship lending.

Transactional service via digital channels (online and mobile banking)

To complement the personal service, Orrstown Financial Services, Inc. (ORRF) is actively modernizing its transactional capabilities to ensure frictionless client interaction. This digital enhancement is not replacing the relationship manager but supporting the client's day-to-day needs. The bank has integrated technology to streamline processes for commercial clients, which is critical for retention.

Recent digital improvements include:

• New Commercial and Small Business loan origination solution.
• Enhanced card management features.
• Improved electronic signature capabilities.
• Integration of an enhanced client relationship management solution with core banking.

Centralized Client Service Center for support and inquiries

While specific metrics for a centralized support center aren't public, the drive for operational excellence, including focusing on robotic process automation and workflow solutions, suggests a strategy to make support efficient when clients need it. The goal is to ensure that when a client needs support beyond their dedicated manager, the response is swift and effective. This operational focus helped reduce the efficiency ratio to 56.4% in Q3 2025.

Community engagement to foster trust and local loyalty

Community engagement is explicitly listed as a core value, which is the foundation for earning local trust. This isn't just about marketing; it's about being the preferred local partner. The bank's mission is to create shareholder value through outstanding client experiences and local decisions. The commitment to credit quality, for example, by proactively managing risk and reducing classified loans to $65.8 million at June 30, 2025, shows accountability to the community's financial well-being.

Community loyalty is fostered through:

• Active participation in local markets in Pennsylvania and Maryland.
• A stated value to 'Be actively engaged in their communities.'
• A strategy to cross-sell and retain new clients gained through past programs.

Finance: draft the next 13-week cash flow view by Friday.

Orrstown Financial Services, Inc. (ORRF) - Canvas Business Model: Channels

You're looking at how Orrstown Financial Services, Inc. gets its products and services-from checking accounts to wealth management-into the hands of its clients across Pennsylvania and Maryland. It's a mix of old-school presence and modern digital tools, which is typical for a regional bank aiming for market share.

The physical branch network is still a core channel, providing that local, in-person touch. Orrstown Bank has grown to 51 banking offices across its operating footprint. This physical presence spans 12 counties in Pennsylvania and Maryland, specifically including Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry, and York Counties in Pennsylvania, and Anne Arundel, Baltimore, Harford, Howard, and Washington Counties in Maryland, along with Baltimore City, Maryland. The bank has been strategically adjusting this footprint; for instance, it has consolidated branches to increase the average branch size to approximately \$118 million in deposits as of mid-2022, following earlier closures.

To support focused lending growth, Orrstown Financial Services, Inc. utilizes dedicated Loan Production Offices (LPOs). The bank operates 8 loan production centers throughout Pennsylvania and Maryland. Specific LPOs have been established to target growth markets, including locations in Berks and York counties.

Digital access is crucial for convenience, and Orrstown Financial Services, Inc. supports this with its online and mobile platforms for both retail and business clients. A key metric showing digital adoption is the rise of noninterest-bearing deposits, which reached 20% of total deposits by the first quarter of 2025. The bank emphasizes its digital capabilities to enhance client convenience.

Here's a quick look at the scale of the physical and specialized channels as of the latest available data:

Channel Type	Specific Metric/Count	Data Point/Value
Physical Banking Offices	Total Banking Offices	51
Loan Production Offices (LPOs)	Total LPOs	8
Geographic Reach (Counties)	Pennsylvania Counties Served	7
Geographic Reach (Counties)	Maryland Counties Served	5 plus Baltimore City
Wealth Management (Advisory)	Assets Under Management (AUM) by Orrstown Financial Advisors (as of 12/31/2024)	\$3.2 billion

For immediate, non-digital service, the bank maintains ATMs and telephone banking. The telephone banking service can be accessed by dialing 1-800-588-3092. Orrstown Financial Advisors, the wealth management division, is a distinct channel for fiduciary and investment advisory services.

The overall asset base supporting these channels was reported at \$5.4 billion in early 2025. The bank is focused on scaling technology and operations to support growth in these established markets.

You can see the multi-pronged approach here:

• Physical branch network across 12 counties in Pennsylvania and Maryland.
• Digital banking platforms for retail and business clients, with noninterest-bearing deposits at 20% of total.
• 8 Loan Production Offices for focused lending.
• Orrstown Financial Advisors managing \$3.2 billion in assets.
• Telephone banking available via 1-800-588-3092.

Finance: draft 13-week cash view by Friday.

Orrstown Financial Services, Inc. (ORRF) - Canvas Business Model: Customer Segments

You're looking at the core client base for Orrstown Financial Services, Inc. as of late 2025. The bank serves a defined geographic area, providing services through convenient locations throughout Pennsylvania and Maryland. The lending focus is principally on customers within Central Pennsylvania and Maryland.

Small to mid-sized commercial businesses in the Mid-Atlantic region represent a key segment, evidenced by the historical focus on commercial lending. For instance, as of June 30, 2020, Commercial (non-PPP) loans made up 19% of the total gross loans. Management has shown a commitment to managing this segment's risk profile; in Q1 2025, total loans decreased by $55 million from year-end 2024, with $50 million of that reduction coming from commercial loans due to payoffs that didn't fit the long-term credit profile. Still, commercial lending remains a growth area, as commercial loans increased by $16.1 million, or 2% annualized, between March 31, 2025, and June 30, 2025.

Retail consumers and families seeking traditional banking services are the foundation for the deposit base, which totaled $4.6 billion at March 31, 2025. This segment supports the bank's funding needs, with non-interest-bearing deposits representing 20% of total deposits at that same date. The overall asset base supporting these customers stood at $5.4 billion as of the Q3 2025 earnings report. The bank's mission centers on providing outstanding client experiences through community engagement and local decisions, which speaks directly to this relationship-focused consumer base.

High-net-worth individuals utilizing wealth management and trust services contribute significantly to fee income, a core strength of Orrstown Financial Services, Inc. Fee income as a percentage of operating revenue was nearly 21% for the third quarter of 2025. The bank is engaged in the trust business as authorized by the Pennsylvania Banking Code of 1965.

Non-profit and government entities in the core geographic footprint are key deposit holders. The bank grants loans to entities like State & Municipal organizations, which historically represented 3% of the loan portfolio as of June 30, 2020. The deposit base includes municipal deposits, which contributed to a rise in total deposits by $145.2 million, or 6%, from December 31, 2020, to September 30, 2021.

The segment of Commercial Real Estate (CRE) investors is actively being managed for risk reduction. As of December 31, 2023, the loan portfolio included Non-owner occupied CRE loans of approximately $694,638 (in thousands, based on context) and Owner-occupied CRE loans of approximately $373,757 (in thousands, based on context). Management has taken strategic actions to reduce CRE loan concentrations, which contributed to a $55.2 million decrease in total loans held for investment in Q1 2025. The bank is focused on prudent loan pricing, as evidenced by the Q3 2025 Net Interest Margin of 4.11%, which management attributes to managing funding costs well alongside pricing loans prudently.

Here's a look at how the loan portfolio has been structured, showing the shift in focus:

Loan/Deposit Category Context	Associated Financial Metric	Date/Period
Total Gross Loans	$1,654 million	2019 (Historical Context)
Total Gross Loans	$3.9 billion	March 31, 2025
Total Deposits	$4.6 billion	March 31, 2025
Non-owner Occupied CRE Loans (Historical)	$694,638 (in thousands)	December 31, 2023
Commercial Loan Production vs. Payoffs	Payoffs of $116 million outpaced production in Q1 2025	Q1 2025
Loan-to-Deposit Ratio	87%	June 30, 2025

The bank's overall strategy supports these segments through strong profitability:

• Net Income of $21.9 million reported for Q3 2025.
• Return on Average Assets (ROAA) at 1.6% in Q3 2025.
• Return on Average Equity (ROAE) at 15.7% in Q3 2025.
• Tangible Book Value per Common Share at $24.12 as of September 30, 2025.

Orrstown Financial Services, Inc. (ORRF) - Canvas Business Model: Cost Structure

The cost structure for Orrstown Financial Services, Inc. is primarily driven by interest expense on deposits and borrowings, which fluctuates directly with market interest rates and the mix/cost of funding sources. For the three months ended September 30, 2025, interest expense, on a tax equivalent basis, was $26.1 million. This followed an interest expense of $25.3 million for the second quarter of 2025.

The second major cost category is noninterest expense. Orrstown Financial Services, Inc. reported noninterest expenses of $36.3 million for the three months ended September 30, 2025. The company expects a quarterly expense run rate of approximately $36 million going forward.

Here's a quick look at the key cost-related financial metrics from Q3 2025:

Cost Component Metric	Amount / Rate	Period
Interest Expense (Tax Equivalent Basis)	$26.1 million	Q3 2025 (3 Months Ended Sept 30)
Noninterest Expense	$36.3 million	Q3 2025 (3 Months Ended Sept 30)
Projected Quarterly Expense Run Rate	~$36 million	Forward Guidance
Total Deposits	$4.5 billion	As of September 30, 2025
Average FHLB Advances and Other Borrowings	$168.9 million	Q3 2025 (3 Months Ended Sept 30)

Salaries and benefits expense represents a major component of the noninterest costs, though specific figures for this sub-category within the $36.3 million total for Q3 2025 aren't explicitly detailed in the latest reports, other than noting that advertising and bank promotions expense decreased by $0.9 million to $0.2 million in Q3 2025. The company has focused on operational efficiencies, which helped drive the efficiency ratio down to 56.4% in the third quarter of 2025.

Costs related to technology and data processing for core systems and digital tools are embedded within the overall noninterest expense. The company has made investments in technology to create operational efficiencies. The focus on efficiency is clear, as the company aims for a sub-55% efficiency target going forward.

Occupancy and equipment costs for the physical footprint, which includes the stated 51-branch network, are another fixed element within the noninterest expense base. The company has actively managed its physical presence, having previously announced branch closures to reduce facilities costs. The cost structure reflects the ongoing expense of maintaining this network across Pennsylvania and Maryland.

Key drivers influencing the interest-related costs include:

• Deposit costs declined by 14 basis points from Q1 2025 to Q2 2025.
• Subordinated notes totaling $32.5 million were redeemed on September 30, 2025, which reduces go-forward interest expense.
• The company is guiding its Net Interest Margin (NIM) between 4.0% and 4.15% for the coming year.

Finance: review the Q4 2025 noninterest expense breakdown against the $36 million run rate target by next Tuesday.

Orrstown Financial Services, Inc. (ORRF) - Canvas Business Model: Revenue Streams

You're looking at how Orrstown Financial Services, Inc. converts its core activities into actual dollars, which is the heart of any financial institution's revenue model. For Orrstown Financial Services, Inc., the streams are quite traditional for a bank, but the recent performance shows some clear execution wins, especially in the fee-based areas.

Net Interest Income (NII) from commercial, consumer, and mortgage loans remains the primary driver. This is the difference between the interest earned on the assets-like your commercial, consumer, and mortgage loans-and the interest paid out on liabilities, mainly customer deposits. The Net Interest Margin (NIM), on a tax equivalent basis, was reported at 4.11% for the three months ended September 30, 2025, an improvement from 4.07% in the second quarter of 2025. While the specific NII breakdown by loan type isn't itemized for Q3 2025, the total operating revenue for Q3 2025 was $64.37 million. Given that Noninterest Income was $13.4 million for the same period, the approximate Net Interest Income for Q3 2025 was around $50.97 million ($64.37 million total revenue minus $13.4 million noninterest income). For context, NII was $48.8 million for the first quarter of 2025.

Noninterest income, which is fee-based revenue not tied to lending rates, was a significant contributor. This category represented 20.8% of operating revenue in the third quarter of 2025. This is the second consecutive quarter this ratio has been near 21%. The absolute dollar amount for Noninterest income rose by $0.5 million to $13.4 million for the three months ended September 30, 2025, up from $12.9 million in the prior quarter. Management is guiding the run-rate for this income to be between $12.5-$13.0 million/quarter going forward.

The components making up that Noninterest income show where the growth is coming from. You can see the breakdown of the fee-related revenue streams below:

Revenue Component	Q3 2025 Amount (Three Months Ended Sept 30, 2025)	Q2 2025 Amount (Three Months Ended June 30, 2025)
Total Noninterest Income	$13.4 million	$12.9 million
Service Charges on Deposit Accounts	$3.0 million	$2.6 million
Swap Fee Income	$0.8 million	$0.7 million

Fee income from wealth management and trust services is clearly a focus area, contributing to the strength in Noninterest income. The asset management division has grown to $3 billion, signaling a clear opportunity to build on this base to increase fee revenue.

Service charges on deposit accounts and card-related interchange fees are showing positive momentum. Service charges specifically were $3.0 million for the third quarter of 2025, up from $2.6 million in the second quarter, which the company attributed to increased interchange activity.

Swap fee income, which you correctly noted fluctuates based on market conditions, also saw a slight uptick. It increased by $0.1 million to reach $0.8 million for the third quarter of 2025, compared to $0.7 million in the preceding quarter.

Here's a quick summary of the key fee income metrics for the third quarter:

• Fee income represented 20.8% of operating revenue.
• Wealth management strength is a key driver of fee income.
• Asset management reached $3 billion.
• Service charges on deposits increased by $0.4 million quarter-over-quarter.
• Swap fee income increased by $0.1 million quarter-over-quarter.

The successful execution of the prior year's merger is definitely showing up in these noninterest income figures, which is helping drive the efficiency ratio down to 56.4% in Q3 2025.

Finance: draft Q4 2025 revenue projection based on guided run-rates by next Tuesday.