Mid Penn, Orrstown banks report year-over-year Q4 growth
Two midstate banks showed fourth-quarter growth compared with 2012 in earnings reports released this week.
Net income for the quarter rose to $1.31 million, or 37 cents per common share, an increase of 23.6 percent from the fourth quarter of 2012 when net income was at $1.06 million, or 30 cents per common share.
For the year, Mid Penn saw a rise of about 4 percent, with net income at $4.6 million, or $1.32 diluted earnings per common share. In 2012, net income was at $4.4 million, or $1.27 diluted earnings per common share.
While the total net loans rose 12.8 percent for the year, the noninterest income dropped by almost 11 percent. Mid Penn Bancorp Inc. President and CEO Rory G. Ritrievi said the decline was due to the erosion in residential mortgages because of higher interest rates. Those higher rates have slowed the refinance activity “dramatically,” he said.
The company also announced a cash dividend of 5 cents per share on its common stock, payable Feb. 24 to shareholders of record by Feb. 5.
Shippensburg-based Orrstown Financial Services Inc. continued its turnaround in the fourth quarter of 2013 after a 2012 in which it lost money for the year.
In 2013’s fourth quarter, the bank reported earnings of $2.9 million, or $0.36 per diluted share, compared with $1 million, or $0.13 per diluted share, in the fourth quarter of 2012.
The 36 cents per diluted share in the quarter beat analyst estimates by 16 cents, according to Yahoo Finance.
“Our ability to address enterprise risk management issues during the past two years allowed for a renewed focus of the company in 2013 to develop new customer relationships, entrance into Lancaster County, and made investments in technology which have strengthened our operating practices,” said Thomas R. Quinn Jr., the company’s president and CEO.