📊 ORRF Key Takeaways
Is Orrstown Financial Services Inc. (ORRF) a Good Investment?
Orrstown Financial faces severe fundamental deterioration with revenue collapsing 87.8% year-over-year, indicating significant business contraction or major operational disruption. The interest coverage ratio of 0.8x reveals the company cannot cover interest expenses from operating income, raising solvency concerns despite positive net income driven by potential one-time gains. Weak returns (ROE 3.6%, ROA 0.4%) and the suspicious disconnect between plummeting revenue and surging net income signal structural problems requiring urgent clarification.
Profitability metrics are strong for a regional bank, with ROA at 1.5% and ROE at 13.7%, supported by sizable operating and free cash generation and a conservative long‑term debt load. However, the extreme margins alongside a sharp reported revenue decline suggest potential one‑offs or classification quirks, so sustainability of earnings should be verified as rates and funding costs normalize.
Orrstown Financial Services Inc. Key Strengths (ORRF)
- Low leverage (Debt/Equity 0.07x) reduces bankruptcy risk
- Positive free cash flow of $25.1M with strong 33.8% FCF margin provides liquidity buffer
- Adequate cash position ($161.1M) exceeds long-term debt ($40.0M)
- ROA 1.5% and ROE 13.7% indicate strong core profitability
- Positive operating cash flow and high free cash conversion with minimal capex
- Low long‑term debt (0.07x D/E) and solid equity base for a $5.5B asset bank
ORRF Stock Risks: Orrstown Financial Services Inc. Investment Risks
- Revenue collapse of 87.8% YoY indicates severe business deterioration or operational failure
- Interest coverage ratio of 0.8x means operating income cannot cover interest expenses—unsustainable long-term
- Extremely weak returns (ROA 0.4%, ROE 3.6%) suggest asset base is not generating adequate profits; abnormal revenue-to-net-income relationship indicates potential one-time gains masking structural decline
- Large YoY revenue drop and outsized margins imply possible nonrecurring items or data classification issues
- Interest rate and funding cost pressure could compress NIM and weaken interest coverage
- Credit risk from loan losses in a downturn and potential deposit mix pressures
Key Metrics to Watch
- Q2 2026 revenue trends to confirm whether 87.8% decline is temporary or structural
- Interest coverage ratio trajectory and net interest margin sustainability
- Asset quality metrics (non-performing loans, loan loss reserves) for banking health indicators
- Net interest margin (trend and sensitivity to funding costs)
- Credit quality (nonperforming assets and net charge‑offs)
Orrstown Financial Services Inc. (ORRF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 33.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
ORRF Profit Margin, ROE & Profitability Analysis
ORRF vs Finance Sector: How Orrstown Financial Services Inc. Compares
How Orrstown Financial Services Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Orrstown Financial Services Inc. Stock Overvalued? ORRF Valuation Analysis 2026
Based on fundamental analysis, Orrstown Financial Services Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Orrstown Financial Services Inc. Balance Sheet: ORRF Debt, Cash & Liquidity
ORRF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Orrstown Financial Services Inc.'s revenue has grown significantly by 96% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.42 reflects profitable operations.
ORRF Revenue Growth, EPS Growth & YoY Performance
Orrstown Financial Services Inc. Dividends, Buybacks & Capital Allocation
ORRF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Orrstown Financial Services Inc. (CIK: 0000826154)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ORRF
What is the AI rating for ORRF?
Orrstown Financial Services Inc. (ORRF) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ORRF's key strengths?
Claude: Low leverage (Debt/Equity 0.07x) reduces bankruptcy risk. Positive free cash flow of $25.1M with strong 33.8% FCF margin provides liquidity buffer. ChatGPT: ROA 1.5% and ROE 13.7% indicate strong core profitability. Positive operating cash flow and high free cash conversion with minimal capex.
What are the risks of investing in ORRF?
Claude: Revenue collapse of 87.8% YoY indicates severe business deterioration or operational failure. Interest coverage ratio of 0.8x means operating income cannot cover interest expenses—unsustainable long-term. ChatGPT: Large YoY revenue drop and outsized margins imply possible nonrecurring items or data classification issues. Interest rate and funding cost pressure could compress NIM and weaken interest coverage.
What is ORRF's revenue and growth?
Orrstown Financial Services Inc. reported revenue of $74.4M.
Does ORRF pay dividends?
Orrstown Financial Services Inc. pays dividends, with $5.9M distributed to shareholders in the trailing twelve months.
Where can I find ORRF SEC filings?
Official SEC filings for Orrstown Financial Services Inc. (CIK: 0000826154) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ORRF's EPS?
Orrstown Financial Services Inc. has a diluted EPS of $1.12.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ORRF's fundamental grade?
Based on our AI fundamental analysis in May 2026, Orrstown Financial Services Inc. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ORRF stock overvalued or undervalued?
Valuation metrics for ORRF: ROE of 3.6% (sector avg: 12%), net margin of 29.3% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is ORRF's AI grade for 2026?
Our dual AI analysis gives Orrstown Financial Services Inc. a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ORRF's free cash flow?
Orrstown Financial Services Inc.'s operating cash flow is $25.5M, with capital expenditures of $422.0K. FCF margin is 33.8%.
How does ORRF compare to other Finance stocks?
Vs Finance sector averages: Net margin 29.3% (avg: 25%), ROE 3.6% (avg: 12%), current ratio N/A (avg: 1.2).