Orrstown Financial Services

ORRF · NASDAQ

$42.10+$0.79 (+1.91%)TodayMarket closed · Oct 20, 7:58 PM ET

Prev close $41.31

ORRF analyst rating

HoldConsensus of 3 analysts over the last 12 months. 33% rate it a buy.

Strong buy0
Buy1
Hold2
Underperform0
Sell0

12-month price target · 6 analysts

Average $45.13 (+7.2% upside)

Low: $42.42
Now: $42.10
High: $48.30

Upgrades and downgrades

The latest rating actions, newest first

ORRF analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Keefe, Bruyette & Woods	Jul 23, 2026	Maintains	Outperform	$44.00 → $46.00	68%
DA Davidson	Jul 22, 2026	Maintains	Neutral	$41.00	53%
Raymond James	Jul 9, 2026	Initiates	Market Perform	—	100%
DA Davidson	May 15, 2026	Initiates	Neutral	$41.00	53%

The case for and against

Updated Oct 16, 2026

Bull case

Orrstown Financial Servs is supported by the July 2024 MOE with Codorus Valley Bancorp, which nearly doubled its asset base to about $5.5B and improved scale, earnings power, and profitability. Its core net interest margin rose 6 bps year over year to 3.54% in 1Q26, deposits rebounded by about $99M from 4Q25, net charge-offs normalized to roughly 9 bps in 1Q26 after the merger spike, and the efficiency ratio improved to 55%, all while capital ratios remained well above “well-capitalized” thresholds. Fee income now supplies about 21% of operating income, wealth management AUM sits just over $3B, and disciplined growth in higher-margin businesses, along with strong capital generation, supports a favorable fundamental outlook despite the ~300% CRE concentration ratio.

Bear case

Orrstown Financial Servs is viewed negatively because the company’s second quarter EPS beat was driven largely by nonrecurring items, including a $1.6 million tax benefit that offset a $1.6 million debt extinguishment charge, rather than durable operating strength. Although 1.3% sequential loan growth and solid credit quality are positives, reported NIM still slipped to 3.87% and later dipped below 4% in 1Q26, showing margin pressure from lower purchase accounting accretion and funding costs. With profitability expected to normalize from about 19% ROTCE toward 14% by YE27 and expenses projected around $149M in 2026, the franchise’s post-2024 merger earnings surge appears to be moderating as credit costs and peer-median valuation levels converge.

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