In the first quarter, the company reported a tangible book value per common share of $21.99. The Common Equity Tier 1 (CET1) capital ratio stood at 8.6% during this period, reflecting a stable financial position. The company's core earnings remained robust despite ongoing expenses related to a merger.
Looking ahead, Thomas Quinn, Jr., the President and CEO, indicated that the organization expects these merger-related expenses to subside significantly as the year progresses. By the latter part of the second quarter, operating results are anticipated to stabilize and return to normal levels.
Quinn emphasized that a significant focus during recent months has been on completing a crucial system conversion, designed to support future growth. Steps taken to safeguard credit quality, enhance liquidity, and improve capital ratios since the merger are strategically aimed at positioning the company for development.
Moreover, the company is preparing to accelerate commercial lending activities and capitalize on strategic opportunities, bolstered by a strong foundation built during the merger process. Overall, the leadership remains confident in the company's short-term and long-term prospects.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Orrstown Financial Services Inc (ORRF, Financial) is $37.20 with a high estimate of $42.00 and a low estimate of $31.00. The average target implies an upside of 34.30% from the current price of $27.70. More detailed estimate data can be found on the Orrstown Financial Services Inc (ORRF) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Orrstown Financial Services Inc's (ORRF, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Orrstown Financial Services Inc (ORRF, Financial) in one year is $23.79, suggesting a downside of 14.12% from the current price of $27.7. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Orrstown Financial Services Inc (ORRF) Summary page.
