Google Plus Facebook LinkedIn Twitter Vimeo RSS

Orrstown reports Q3 results

By - Last modified: October 31, 2012 at 11:46 AM

Orrstown Financial Services Inc. said this week it is recording a third-quarter net loss of more than $21 million but nearly $20 million of that is due to recognizing losses that it plans to recover by using them to offset future tax liabilities.

The parent company of Orrstown Bank on Monday reported a loss for the quarter ending Sept. 30 of $21.4 million, or $2.65 per diluted share, compared with earnings of $4.3 million, or 54 cents per diluted share, for the third quarter of 2011.

Analysts had expected losses of 24 cents per share, according to Yahoo Finance.

Orrstown said it has $19.9 million in recently incurred “credit and credit-related losses and expenses” that constitute a “deferred tax asset,” meaning it can be set against future taxable income. Because of uncertainty regarding when that will happen, however, Orrstown recorded a valuation allowance against the full amount.

“The valuation allowance represents a non-cash charge to income tax expense and will be recoverable in future years as the company returns to profitability,” Orrstown said.

Excluding the valuation allowance, Orrstown said it posted a loss of $1.5 million for the quarter and $19.6 million for the year through Sept. 30.

Orrstown is working to right itself after nonperforming loans pushed it to a loss of $32 million in 2011. The bank has strengthened its management team and significantly reduced the risk in its loan portfolio, CEO Thomas Quinn said in a statement.

Orrstown reported nonaccrual loans of $57.8 million as of Sept. 30, compared with $56.9 million in June and $83.7 million in December 2011.

Orrstown’s shares trade on the Nasdaq under the ticker symbol ORRF.

 

Write to the Editorial Department at editorial@cpbj.com

Leave a Comment

test

Please note: All comments will be reviewed and may take up to 24 hours to appear on the site.

Post Comment
View Comment Policy

Comments

close
Subscribe to Our Newsletters!
Click Here to Subscribe for Free Now!