Orrstown Financial details return to stability to investors
Officials at Orrstown Financial Services Inc. met with investment officials Wednesday in New York City to promote the company and document its rise back to stability.
The Shippensburg-based company -- which operates 21 banks in Dauphin, Cumberland, and Franklin counties and in Maryland -- met with institutional investors, investment firm analysts and others at the Keefe, Bruyette & Woods Community Bank Investor Conference, according to an SEC filing.
Keefe, Bruyette & Woods is an investment banking firm specializing in financial services.
Bank officials said Tom Quinn Jr., CEO; David Boyle, CFO; and Jeff Seibert, COO, represented the company at the presentation.
“We just walked (potential investors) through where the company is,” Boyle said. “We showed them where we were before, where we were during the crisis, and showed them that we’re on the other side of the crisis and where the company is headed. I can tell you the response was pretty positive.”
The SEC filing by Orrstown on Wednesday included a capsule view of the company, one that included, for the first time in two years, positive financial progress. After two straight years of posting losses, the company showed a near $5 million income gain so far this year and highlighted three straight quarters of improving profitability.
The bank lost $32 million in 2011 and about $38.5 million in 2012, according to the presentation, and the bank had to operate under federal and state consent orders starting in March 2012. The losses were due to default on commercial real estate loans.
The stock price reflected the good vibes Quinn and Boyle said they received during the presentation. It was trading at $14.25 earlier this week, but was up to $15.65 on Friday. Orrstown Financial trades its shares on the Nasdaq under the ticker symbol ORRF.
“People are seeing the company has moved through the obstacles we’ve had,” Quinn said.