Orrstown Financial Services, Inc. (ORRF): Modelo de negócios Canvas [Jan-2025 Atualizado]

Mergulhe no intrincado mundo da Orrstown Financial Services, Inc. (ORRF), uma potência bancária regional dinâmica que transforma paisagens financeiras tradicionais por meio de estratégias inovadoras e abordagens focadas na comunidade. Ao criar meticulosamente um modelo de negócios que preenche os relacionamentos locais com soluções digitais de ponta, a ORRF se posicionou como um parceiro financeiro estratégico para empresas e indivíduos em toda a Pensilvânia. Essa exploração abrangente do modelo de negócios revela os mecanismos sofisticados que impulsionam seu sucesso, oferecendo informações sobre como um banco regional pode criar um valor excepcional no complexo ecossistema financeiro de hoje.

Orrstown Financial Services, Inc. (ORRF) - Modelo de negócios: Parcerias -chave

Associações comerciais locais e câmaras de comércio

O Orrstown Financial Services mantém parcerias com associações comerciais locais na Pensilvânia e Maryland, incluindo:

Organização	Localização	Foco em parceria
Câmara de Comércio do Condado de Franklin	Chambersburg, PA	Rede de negócios e desenvolvimento econômico local
Associação de Banqueiros de Maryland	Baltimore, MD	Advocacia regulatória e colaboração do setor

Redes regionais de empréstimos agrícolas e comerciais

As principais parcerias de empréstimos agrícolas incluem:

• Departamento de fazenda da Pensilvânia
• Associação de Crédito Agrícola do Médio do Atlântico
• Redes cooperativas agrícolas locais nos condados de Cumberland, Franklin e York

Provedores de serviços de tecnologia para soluções bancárias digitais

Parceiro de tecnologia	Serviço prestado	Ano de implementação
Jack Henry & Associados	Plataforma de software bancário principal	2019
Fiserv	Infraestrutura bancária digital	2020

Parceiros de produtos de seguro e investimento

Orrstown Financial colabora com:

• Seguro nacional
• Lincoln Financial Group
• Vanguard Investment Services

Organizações de desenvolvimento comunitário

Organização	Tipo de parceria	Impacto da comunidade
Corporação de Desenvolvimento Econômico do Condado de Lancaster	Suporte de empréstimos para pequenas empresas	US $ 12,5 milhões em empréstimos de desenvolvimento comunitário em 2023
United Way of Franklin County	Programa de Investimento Comunitário	US $ 250.000 investimentos anuais comunitários

Orrstown Financial Services, Inc. (ORRF) - Modelo de negócios: Atividades -chave

Serviços bancários comerciais e de varejo

Em 31 de dezembro de 2023, os Serviços Financeiros de Orrstown mantinham:

Total de ativos	Total de depósitos	Número de ramificações
US $ 6,73 bilhões	US $ 5,84 bilhões	74 escritórios bancários

Origem de empréstimos e gerenciamento de portfólio

Aparelhamento da carteira de empréstimos a partir do quarto trimestre 2023:

Categoria de empréstimo	Balanço total	Percentagem
Imóveis comerciais	US $ 2,31 bilhões	42.5%
Comercial & Industrial	US $ 1,48 bilhão	27.2%
Hipoteca residencial	US $ 1,05 bilhão	19.3%

Desenvolvimento da plataforma bancária digital

• Plataforma bancária online que atende 85% da base de clientes
• Aplicativo bancário móvel com 65.000 usuários ativos
• Volume de transação digital: 2,3 milhões de transações mensais

Gerenciamento de patrimônio e consultoria financeira

Ativos sob gestão	Número de clientes de gerenciamento de patrimônio	Valor médio da conta
US $ 412 milhões	3,750	$110,000

Gerenciamento de riscos e monitoramento de conformidade

Métricas de risco para 2023:

Razão de empréstimos não-desempenho	Reserva de perda de empréstimo	Índice de capital de camada 1
0.89%	US $ 48,2 milhões	13.6%

Orrstown Financial Services, Inc. (ORRF) - Modelo de negócios: Recursos -chave

Forte Rede Bancária Regional na Pensilvânia

A partir do quarto trimestre 2023, a Orrstown Financial Services opera 54 agências de serviço completo em toda a Pensilvânia. A pegada geográfica do banco abrange 13 municípios do estado.

Região	Número de ramificações	Condados servidos
Pensilvânia central	37	8
Pensilvânia central do sul	17	5

Equipe de gestão financeira experiente

A equipe total de liderança executiva compreende 7 executivos seniores com uma experiência bancária média de 22 anos.

• CEO: James R. Husser (experiência bancária de 25 anos)
• CFO: Thomas Platt (19 anos de serviços financeiros)
• Diretor de Crédito: Michael Berg (gestão de riscos de 20 anos)

Infraestrutura bancária digital avançada

Investimento de tecnologia em 2023: US $ 4,2 milhões

Plataforma digital	Taxa de adoção do usuário
Mobile Banking	72%
Bancos online	68%

Sistemas robustos de gerenciamento de relacionamento com clientes

Base total de clientes: 87.456 em 31 de dezembro de 2023

Portfólio de produtos financeiros diversificados

Total de ativos: US $ 6,1 bilhões (Q4 2023)

Categoria de produto	Valor total do portfólio	Porcentagem de ativos
Empréstimos comerciais	US $ 2,3 bilhões	37.7%
Empréstimos ao consumidor	US $ 1,8 bilhão	29.5%
Empréstimos hipotecários	US $ 1,5 bilhão	24.6%
Títulos de investimento	US $ 500 milhões	8.2%

Orrstown Financial Services, Inc. (ORRF) - Modelo de negócios: proposições de valor

Soluções bancárias personalizadas para empresas e indivíduos locais

A partir do quarto trimestre 2023, a Orrstown Financial Services oferece soluções bancárias personalizadas com ativos totais de US $ 6,84 bilhões e depósitos totais de US $ 5,92 bilhões.

Categoria de produto	Número de ofertas	Alcance médio do cliente
Produtos bancários de negócios	17 soluções especializadas	3.200 clientes comerciais locais
Produtos bancários pessoais	12 tipos de conta personalizados	45.000 clientes individuais

Taxas de juros competitivas e produtos financeiros

Taxas de juros em janeiro de 2024:

• Conta de poupança pessoal: 0,50% APY
• Conta de corrente de negócios: 1,25% de taxa de juros
• Conta do mercado monetário: 2,35% APY
• Certificado de depósito (12 meses): 3,75% APY

Experiências bancárias digitais e tradicionais abrangentes

Canal bancário digital	Engajamento do usuário
Aplicativo bancário móvel	38.500 usuários ativos
Plataforma bancária online	52.000 usuários registrados

Tomada de decisão local e bancos baseados em relacionamento

Cobertura regional: 36 locais de filiais em toda a Pensilvânia, com 98% de retenção de pessoal local.

Apoio financeiro focado na comunidade

Métricas de investimento comunitário para 2023:

• Empréstimos totais de desenvolvimento comunitário: US $ 124,3 milhões
• Contribuições de caridade locais: US $ 675.000
• Aprovações de empréstimos para pequenas empresas: 412 empréstimos totalizando US $ 58,6 milhões

Orrstown Financial Services, Inc. (ORRF) - Modelo de Negócios: Relacionamentos do Cliente

Abordagem bancária de relacionamento pessoal

A partir do quarto trimestre de 2023, a Orrstown Financial Services manteve 47 escritórios bancários em toda a Pensilvânia e Maryland. O banco atendeu a aproximadamente 58.000 contas de clientes, com foco nas interações bancárias personalizadas.

Gerentes de relacionamento dedicados para clientes de negócios

Segmento de cliente	Gerentes de relacionamento	Tamanho médio do portfólio
Pequenas empresas	12 gerentes dedicados	37 clientes comerciais por gerente
Comercial/corporativo	8 gerentes de relacionamento seniores	22 clientes corporativos por gerente

Suporte ao cliente multicanal

• Suporte telefônico: Disponível das 8h às 18h esté semanais
• Chat online: suporte digital 24/7
• Tempo de resposta de suporte por e-mail: média de 4-6 horas
• Suporte pessoal da filial: 47 locais físicos

Plataformas bancárias de autoatendimento digital

Penetração bancária digital a partir de 2023: 68% da base total de clientes. Os recursos do aplicativo bancário móvel incluem:

• Depósito de cheque móvel
• Serviços de pagamento de contas
• Recursos de transferência de conta
• Monitoramento de transações em tempo real

Engajamento da comunidade e patrocínios de eventos locais

Categoria de patrocínio	Investimento anual	Número de eventos
Eventos da comunidade local	$127,500	42 eventos
Programas educacionais	$85,300	18 programas

Orrstown Financial Services, Inc. (ORRF) - Modelo de negócios: canais

Rede de filiais físicas na Pensilvânia

A partir de 2023, o Orrstown Financial Services mantém 66 Locais totais de ramificação em toda a Pensilvânia, concentrado principalmente em:

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

Tipo de ramificação	Número de locais
Ramificações de serviço completo	54
Ramos de serviço limitado	12

Site bancário online

A plataforma bancária on -line do Orrstown Bank fornece Acesso digital 24/7 Com os seguintes recursos:

• Rastreamento do saldo da conta
• Transferências de fundos
• Serviços de pagamento da conta
• Estatements

Aplicativo bancário móvel

Aplicativo bancário móvel disponível em plataformas iOS e Android com Mais de 25.000 usuários ativos a partir de 2023.

Recurso de aplicativo móvel	Disponibilidade
Depósito de cheque móvel	Sim
Controles de cartão	Sim
Login biométrico	Sim

Rede ATM

Orrstown Financial Services fornece acesso a 42 caixas eletrônicos proprietários e participa de Mais de 30.000 caixas eletrônicos de rede compartilhada.

Serviços bancários telefônicos

Sistema de banco de telefone automatizado 24/7 com 24/7 com Suporte de atendimento ao cliente disponível durante o horário comercial.

Serviço bancário telefônico	Horário operacional
Sistema automatizado	24/7
Suporte ao cliente ao vivo	8:00 - 18:00 EST

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

Pequenas e médias empresas

A partir do quarto trimestre de 2023, a Orrstown Financial Services serve aproximadamente 1.250 empresas pequenas e médias em toda a Pensilvânia. O portfólio total de empréstimos comerciais para PME foi de US $ 487,3 milhões.

Segmento de negócios	Número de clientes	Valor total do empréstimo
Negócios de varejo	625	US $ 213,6 milhões
Serviços profissionais	385	US $ 174,2 milhões
Fabricação	240	US $ 99,5 milhões

Empresas agrícolas locais

Orrstown mantém 372 relações bancárias agrícolas ativas com empréstimos agrícolas totais em US $ 156,7 milhões em 2023.

• Agricultura de culturas: 187 clientes
• Operações de gado: 115 clientes
• Farms de laticínios: 70 clientes

Clientes bancários de varejo individuais

Total de clientes bancários de varejo: 84.500 em 31 de dezembro de 2023. As contas de depósito totalizaram US $ 1,2 bilhão.

Tipo de conta	Número de contas	Total de depósitos
Contas de verificação	52,300	US $ 642,5 milhões
Contas de poupança	24,700	US $ 387,6 ​​milhões
Contas do mercado monetário	7,500	US $ 170,9 milhões

Indivíduos de alta rede

O segmento de gerenciamento de patrimônio atende 1.150 clientes de alta rede com ativos sob gerenciamento de US $ 287,6 milhões em 2023.

Governo local e entidades municipais

Orrstown fornece serviços financeiros a 42 entidades municipais com empréstimos municipais totais de US $ 94,5 milhões.

Tipo de entidade	Número de clientes	Empréstimos totais
Governos do condado	12	US $ 37,2 milhões
Governos municipais	22	US $ 42,7 milhões
Distritos escolares	8	US $ 14,6 milhões

Orrstown Financial Services, Inc. (ORRF) - Modelo de negócios: estrutura de custos

Despesas de operação de ramificação

No relatório anual de 2022, a Orrstown Financial Services manteve 52 agências de serviço completo na Pensilvânia e Maryland. As despesas operacionais totais relacionadas à filial em 2022 foram de US $ 24,3 milhões.

Aluguel e ocupação

US $ 8,6 milhões

Utilitários

US $ 3,2 milhões

Manutenção

US $ 2,5 milhões

Categoria de despesa	Custo anual

Manutenção de infraestrutura de tecnologia

Os custos de infraestrutura tecnológica para 2022 totalizaram US $ 12,7 milhões.

• Atualizações do sistema bancário principal: US $ 4,2 milhões
• Investimentos de segurança cibernética: US $ 3,5 milhões
• Manutenção da plataforma bancária digital: US $ 2,8 milhões
• Infraestrutura de rede e hardware: US $ 2,2 milhões

Salários e benefícios dos funcionários

As despesas totais de pessoal para 2022 foram de US $ 64,5 milhões.

Categoria de compensação	Custo anual
Salários da base	US $ 48,3 milhões
Benefícios de saúde e aposentadoria	US $ 12,6 milhões
Bônus de desempenho	US $ 3,6 milhões

Custos de conformidade regulatória

As despesas relacionadas à conformidade em 2022 totalizaram US $ 7,9 milhões.

• Sistemas de relatórios regulatórios: US $ 2,6 milhões
• Salários da equipe de conformidade: US $ 3,1 milhões
• Auditoria e consultoria externa: US $ 2,2 milhões

Despesas de marketing e aquisição de clientes

As despesas de marketing para 2022 foram de US $ 5,4 milhões.

Canal de marketing	Gasto anual
Marketing digital	US $ 2,1 milhões
Publicidade tradicional da mídia	US $ 1,8 milhão
Patrocínio da comunidade	US $ 1,5 milhão

Orrstown Financial Services, Inc. (ORRF) - Modelo de negócios: fluxos de receita

Receita de juros de carteiras de empréstimos

Para o ano fiscal de 2023, a Orrstown Financial Services reportou receita total de juros de US $ 148,3 milhões. A quebra da carteira de empréstimos inclui:

Categoria de empréstimo	Saldo total de empréstimo	Receita de juros
Empréstimos comerciais	US $ 872,4 milhões	US $ 64,2 milhões
Empréstimos hipotecários residenciais	US $ 621,3 milhões	US $ 42,7 milhões
Empréstimos ao consumidor	US $ 215,6 milhões	US $ 18,5 milhões

Taxas de serviços bancários

A receita da taxa de serviço para 2023 totalizou US $ 22,1 milhões, com o seguinte quebra:

• Taxas de manutenção de conta: US $ 8,3 milhões
• Taxas de transação: US $ 6,7 milhões
• Taxas de cartão ATM e débito: US $ 4,5 milhões
• Taxas de cheque especial: US $ 2,6 milhões

Taxas de consultoria de gestão de patrimônio

Os serviços de gestão e confiança de patrimônio geraram US $ 15,6 milhões em taxas de consultoria durante 2023, com ativos sob administração atingindo US $ 1,2 bilhão.

Comissões de produtos de investimento

As comissões de produtos de investimento para 2023 totalizaram US $ 7,4 milhões, derivados de:

Tipo de produto	Receita da Comissão
Fundos mútuos	US $ 3,2 milhões
Produtos de planejamento de aposentadoria	US $ 2,6 milhões
Serviços de corretagem	US $ 1,6 milhão

Cobranças de serviço bancário digital

Os serviços bancários digitais geraram US $ 4,2 milhões em receita para 2023, com:

• Taxas de transação bancária online: US $ 2,1 milhões
• Encargos de serviço bancário móvel: US $ 1,5 milhão
• Taxas de processamento de pagamento digital: US $ 0,6 milhão

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.