Orrstown Financial Services, Inc. (ORRF): Modelo de Negocio Canvas [Actualizado en Ene-2025]

Sumerja el intrincado mundo de Orrstown Financial Services, Inc. (ORRF), una potencia bancaria regional dinámica que transforma los paisajes financieros tradicionales a través de estrategias innovadoras y enfoques centrados en la comunidad. Al crear meticulosamente un modelo de negocio que une las relaciones locales con soluciones digitales de vanguardia, ORRF se ha posicionado como un socio financiero estratégico para empresas e individuos de Pensilvania. Esta exploración integral de lienzo de modelo de negocio revela los mecanismos sofisticados que impulsan su éxito, ofreciendo información sobre cómo un banco regional puede crear un valor excepcional en el complejo ecosistema financiero actual.

Orrstown Financial Services, Inc. (ORRF) - Modelo de negocios: asociaciones clave

Asociaciones comerciales locales y cámaras de comercio

Orrstown Financial Services mantiene asociaciones con asociaciones comerciales locales en Pensilvania y Maryland, incluidos:

Organización	Ubicación	Enfoque de asociación
Cámara de Comercio del Condado de Franklin	Chambersburg, PA	Redes comerciales y desarrollo económico local
Asociación de Banqueros de Maryland	Baltimore, MD	Defensa regulatoria y colaboración de la industria

Redes regionales de préstamos agrícolas y comerciales

Las asociaciones clave de préstamos agrícolas incluyen:

• Oficina de Agricultura de Pensilvania
• Asociación de Crédito Agrícola del Atlántico Medio
• Redes cooperativas de granja locales en los condados de Cumberland, Franklin y York

Proveedores de servicios de tecnología para soluciones de banca digital

Socio tecnológico	Servicio proporcionado	Año de implementación
Jack Henry & Asociado	Plataforma de software bancario central	2019
Fiserv	Infraestructura bancaria digital	2020

Socios de productos de seguros e inversión

Orrstown Financial colabora con:

• Seguro nacional
• Lincoln Financial Group
• Servicios de inversión de Vanguard

Organizaciones de desarrollo comunitario

Organización	Tipo de asociación	Impacto de la comunidad
Corporación de Desarrollo Económico del Condado de Lancaster	Soporte de préstamos para pequeñas empresas	$ 12.5 millones en préstamos de desarrollo comunitario en 2023
United Way del condado de Franklin	Programa de inversión comunitaria	$ 250,000 Inversión comunitaria anual

Orrstown Financial Services, Inc. (ORRF) - Modelo de negocio: actividades clave

Servicios de banca comercial y minorista

Al 31 de diciembre de 2023, Orrstown Financial Services mantuvo:

Activos totales	Depósitos totales	Número de ramas
$ 6.73 mil millones	$ 5.84 mil millones	74 oficinas bancarias

Originación de préstamo y gestión de cartera

Desglose de la cartera de préstamos a partir del cuarto trimestre 2023:

Categoría de préstamo	Saldo total	Porcentaje
Inmobiliario comercial	$ 2.31 mil millones	42.5%
Comercial & Industrial	$ 1.48 mil millones	27.2%
Hipoteca residencial	$ 1.05 mil millones	19.3%

Desarrollo de la plataforma de banca digital

• Plataforma de banca en línea que atiende al 85% de la base de clientes
• Aplicación de banca móvil con 65,000 usuarios activos
• Volumen de transacciones digitales: 2.3 millones de transacciones mensuales

Gestión de patrimonio y asesoramiento financiero

Activos bajo administración	Número de clientes de gestión de patrimonio	Valor de cuenta promedio
$ 412 millones	3,750	$110,000

Gestión de riesgos y monitoreo de cumplimiento

Métricas de riesgo para 2023:

Relación de préstamos sin rendimiento	Reserva de pérdida de préstamo	Relación de capital de nivel 1
0.89%	$ 48.2 millones	13.6%

Orrstown Financial Services, Inc. (ORRF) - Modelo de negocio: recursos clave

Red bancaria regional fuerte en Pensilvania

A partir del cuarto trimestre de 2023, Orrstown Financial Services opera 54 sucursales de servicio completo en Pensilvania. La huella geográfica del banco cubre 13 condados en el estado.

Región	Número de ramas	Condados atendidos
Pensilvania central	37	8
South Central Pensilvania	17	5

Equipo experimentado de gestión financiera

El equipo de liderazgo ejecutivo total comprende 7 ejecutivos senior con una experiencia bancaria promedio de 22 años.

• CEO: James R. Husser (25 años de experiencia bancaria)
• CFO: Thomas Platt (19 años de servicios financieros)
• Director de crédito: Michael Berg (20 años de gestión de riesgos)

Infraestructura de banca digital avanzada

Inversión tecnológica en 2023: $ 4.2 millones

Plataforma digital	Tasa de adopción de usuarios
Banca móvil	72%
Banca en línea	68%

Sistemas robustos de gestión de relaciones con el cliente

Base total de clientes: 87,456 al 31 de diciembre de 2023

Cartera de productos financieros diversificados

Activos totales: $ 6.1 mil millones (cuarto trimestre de 2023)

Categoría de productos	Valor total de la cartera	Porcentaje de activos
Préstamos comerciales	$ 2.3 mil millones	37.7%
Préstamos al consumo	$ 1.8 mil millones	29.5%
Préstamos hipotecarios	$ 1.5 mil millones	24.6%
Valores de inversión	$ 500 millones	8.2%

Orrstown Financial Services, Inc. (ORRF) - Modelo de negocio: propuestas de valor

Soluciones bancarias personalizadas para empresas e individuos locales

A partir del cuarto trimestre de 2023, Orrstown Financial Services ofrece soluciones bancarias personalizadas con activos totales de $ 6.84 mil millones y depósitos totales de $ 5.92 mil millones.

Categoría de productos	Número de ofrendas	Alcance promedio del cliente
Productos bancarios de negocios	17 soluciones especializadas	3.200 clientes comerciales locales
Productos bancarios personales	12 tipos de cuenta a medida	45,000 clientes individuales

Tasas de interés competitivas y productos financieros

Tasas de interés a partir de enero de 2024:

• Cuenta de ahorro personal: 0.50% APY
• Cuenta corriente de negocios: 1.25% de tasa de interés
• Cuenta del mercado monetario: 2.35% APY
• Certificado de depósito (12 meses): 3.75% APY

Experiencias bancarias digitales y tradicionales integrales

Canal bancario digital	Compromiso de usuario
Aplicación de banca móvil	38,500 usuarios activos
Plataforma bancaria en línea	52,000 usuarios registrados

Toma de decisiones locales y banca basada en relaciones

Cobertura regional: 36 ubicaciones de sucursales en Pensilvania, con 98% de retención de personal local.

Apoyo financiero centrado en la comunidad

Métricas de inversión comunitaria para 2023:

• Préstamos totales de desarrollo comunitario: $ 124.3 millones
• Contribuciones caritativas locales: $ 675,000
• Aprobaciones de préstamos para pequeñas empresas: 412 préstamos por un total de $ 58.6 millones

Orrstown Financial Services, Inc. (ORRF) - Modelo de negocios: relaciones con los clientes

Enfoque bancario de relaciones personales

A partir del cuarto trimestre de 2023, Orrstown Financial Services mantuvo 47 oficinas bancarias en Pensilvania y Maryland. El banco atendió aproximadamente 58,000 cuentas de clientes con un enfoque en interacciones bancarias personalizadas.

Gerentes de relaciones dedicadas para clientes comerciales

Segmento de clientes	Gerentes de relaciones	Tamaño promedio de la cartera
Pequeño negocio	12 gerentes dedicados	37 clientes comerciales por gerente
Comercial/corporativo	8 gerentes de relaciones senior	22 clientes empresariales por gerente

Atención al cliente multicanal

• Soporte telefónico: Disponible de 8 am a 6 p.m. EST entre semana
• Chat en línea: soporte digital 24/7
• Tiempo de respuesta de soporte por correo electrónico: promedio de 4 a 6 horas
• Soporte en la persona en persona: 47 ubicaciones físicas

Plataformas de banca de autoservicio digital

Penetración de banca digital a partir de 2023: 68% de la base total de clientes. Las características de la aplicación de banca móvil incluyen:

• Depósito de cheque móvil
• Servicios de pago de facturas
• Capacidades de transferencia de cuenta
• Monitoreo de transacciones en tiempo real

Participación comunitaria y patrocinios de eventos locales

Categoría de patrocinio	Inversión anual	Número de eventos
Eventos de la comunidad local	$127,500	42 eventos
Programas educativos	$85,300	18 programas

Orrstown Financial Services, Inc. (ORRF) - Modelo de negocios: canales

Red de sucursales físicas en Pensilvania

A partir de 2023, Orrstown Financial Services mantiene 66 ubicaciones de sucursales totales a través de Pensilvania, concentrado principalmente en:

• Condado de Cumberland
• Condado de Franklin
• Condado de Lancaster
• Condado de York

Tipo de rama	Número de ubicaciones
Ramas de servicio completo	54
Ramas de servicio limitado	12

Sitio web de banca en línea

La plataforma bancaria en línea de Orrstown Bank proporciona Acceso digital 24/7 Con las siguientes características:

• Seguimiento del saldo de la cuenta
• Transferencias de fondos
• Servicios de pago de facturas
• estatidades

Aplicación de banca móvil

Aplicación de banca móvil disponible en plataformas de iOS y Android con más de 25,000 usuarios activos a partir de 2023.

Función de la aplicación móvil	Disponibilidad
Depósito de cheque móvil	Sí
Controles de tarjetas	Sí
Inicio de sesión biométrico	Sí

Red de cajeros automáticos

Orrstown Financial Services proporciona acceso a 42 cajeros automáticos y participa en Más de 30,000 cajeros automáticos compartidos.

Servicios de banca telefónica

Sistema de banca telefónica automatizada 24/7 con Soporte de servicio al cliente disponible durante el horario comercial.

Servicio de banca telefónica	Horas operativas
Sistema automatizado	24/7
Atención al cliente en vivo	8:00 am - 6:00 pm EST

Orrstown Financial Services, Inc. (ORRF) - Modelo de negocios: segmentos de clientes

Empresas pequeñas a medianas

A partir del cuarto trimestre de 2023, Orrstown Financial Services atiende a aproximadamente 1.250 empresas pequeñas a medianas en Pensilvania. La cartera total de préstamos comerciales para las PYME fue de $ 487.3 millones.

Segmento de negocios	Número de clientes	Valor total del préstamo
Negocios minoristas	625	$ 213.6 millones
Servicios profesionales	385	$ 174.2 millones
Fabricación	240	$ 99.5 millones

Empresas agrícolas locales

Orrstown mantiene 372 relaciones activas de banca agrícola con préstamos agrícolas totales en $ 156.7 millones en 2023.

• Agricultura de cultivos: 187 clientes
• Operaciones ganaderas: 115 clientes
• Dairy Farms: 70 clientes

Clientes de banca minorista individual

Total de clientes de banca minorista: 84,500 al 31 de diciembre de 2023. Las cuentas de depósito totalizaron $ 1.2 mil millones.

Tipo de cuenta	Número de cuentas	Depósitos totales
Cuentas corrientes	52,300	$ 642.5 millones
Cuentas de ahorro	24,700	$ 387.6 millones
Cuentas del mercado monetario	7,500	$ 170.9 millones

Individuos de alto nivel de red

El segmento de gestión de patrimonio atiende a 1,150 clientes de alto valor de la red con activos bajo administración de $ 287.6 millones en 2023.

Gobierno local y entidades municipales

Orrstown brinda servicios financieros a 42 entidades municipales con préstamos municipales totales de $ 94.5 millones.

Tipo de entidad	Número de clientes	Préstamo total
Gobiernos del condado	12	$ 37.2 millones
Gobiernos municipales	22	$ 42.7 millones
Distritos escolares	8	$ 14.6 millones

Orrstown Financial Services, Inc. (ORRF) - Modelo de negocio: Estructura de costos

Gastos de operación de rama

A partir del informe anual de 2022, Orrstown Financial Services mantuvo 52 sucursales de servicio completo en Pensilvania y Maryland. Los gastos operativos totales relacionados con las sucursales para 2022 fueron de $ 24.3 millones.

Alquiler y ocupación

$ 8.6 millones

Utilidades

$ 3.2 millones

Mantenimiento

$ 2.5 millones

Categoría de gastos	Costo anual

Mantenimiento de la infraestructura tecnológica

Los costos de infraestructura tecnológica para 2022 totalizaron $ 12.7 millones.

• Actualizaciones del sistema bancario central: $ 4.2 millones
• Inversiones de ciberseguridad: $ 3.5 millones
• Mantenimiento de la plataforma de banca digital: $ 2.8 millones
• Infraestructura de red y hardware: $ 2.2 millones

Salarios y beneficios de los empleados

Los gastos totales de personal para 2022 fueron de $ 64.5 millones.

Categoría de compensación	Costo anual
Salarios base	$ 48.3 millones
Beneficios de salud y jubilación	$ 12.6 millones
Bonos de rendimiento	$ 3.6 millones

Costos de cumplimiento regulatorio

Los gastos relacionados con el cumplimiento para 2022 ascendieron a $ 7.9 millones.

• Sistemas de informes regulatorios: $ 2.6 millones
• Salarios del personal de cumplimiento: $ 3.1 millones
• Auditoría externa y consultoría: $ 2.2 millones

Gastos de marketing y adquisición de clientes

Los gastos de marketing para 2022 fueron de $ 5.4 millones.

Canal de marketing	Gasto anual
Marketing digital	$ 2.1 millones
Publicidad de medios tradicional	$ 1.8 millones
Patrocinios comunitarios	$ 1.5 millones

Orrstown Financial Services, Inc. (ORRF) - Modelo de negocios: flujos de ingresos

Ingresos por intereses de las carteras de préstamos

Para el año fiscal 2023, Orrstown Financial Services informó ingresos por intereses totales de $ 148.3 millones. El desglose de la cartera de préstamos incluye:

Categoría de préstamo	Saldo total del préstamo	Ingresos por intereses
Préstamos comerciales	$ 872.4 millones	$ 64.2 millones
Préstamos hipotecarios residenciales	$ 621.3 millones	$ 42.7 millones
Préstamos al consumo	$ 215.6 millones	$ 18.5 millones

Tarifas de los servicios bancarios

Los ingresos de la tarifa de servicio para 2023 totalizaron $ 22.1 millones, con el siguiente desglose:

• Tarifas de mantenimiento de la cuenta: $ 8.3 millones
• Tarifas de transacción: $ 6.7 millones
• Tarifas de cajeros automáticos y tarjetas de débito: $ 4.5 millones
• Tarifas de sobregiro: $ 2.6 millones

Tarifas de asesoramiento de gestión de patrimonio

Los servicios de gestión de patrimonio y fideicomiso generaron $ 15.6 millones en tarifas de asesoramiento durante 2023, con activos bajo administración que alcanzan los $ 1.2 mil millones.

Comisiones de productos de inversión

Las comisiones de productos de inversión para 2023 ascendieron a $ 7.4 millones, derivados de:

Tipo de producto	Ingresos por comisión
Fondos mutuos	$ 3.2 millones
Productos de planificación de jubilación	$ 2.6 millones
Servicios de corretaje	$ 1.6 millones

Cargos de servicio bancario digital

Los servicios de banca digital generaron $ 4.2 millones en ingresos para 2023, con:

• Tarifas de transacción bancaria en línea: $ 2.1 millones
• CARGOS DEL SERVICIO BANCA MÓVIL: $ 1.5 millones
• Tarifas de procesamiento de pagos digitales: $ 0.6 millones

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.