Orrstown settles shareholder class action for $15M; records $13M charge, posts Q3 net loss

ORRSTOWN FINANCIAL SERVICES INC

Agreed to settle class action lawsuit; company contributes $13M of the $15M total payment; mutual release and dismissal with prejudice.
Q3 2022 net loss of $4.8M ($0.47 diluted loss) vs prior reported net income; adjusted net income $7.9M ($0.75 diluted) ex settlement and restructuring.
Nine-month 2022 net income revised to $12.4M ($1.16 diluted); adjusted to $25.2M ($2.34 diluted) excluding $13M settlement and $3.2M restructuring.
Tangible book value per share fell to $18.34 at Sept 30, 2022 from $20.23 at June 30, 2022 due to settlement charge and AOCI decline.
Shareholders' equity decreased $20.1M to $217.4M; risk-based capital ratio 12.7% and Tier 1 leverage 8.4% remain well above regulatory minimums.

Key facts

Extracted from this filing and checked against the source text.

Earnings Releases SEC 8-K Item 2.02 confidence 0.9

ORRSTOWN FINANCIAL SERVICES INC reported nine months ended September 30, 2022 results: net income $12.4 million, EPS $1.16.

Period: nine months ended September 30, 2022
Net income: $12.4 million
EPS: $1.16
Result: reported results

Exact text from the filing

For the nine months ended September 30, 2022, net income, diluted earnings per share, return on average assets and return on average equity totaled $12.4 million, $1.16, 0.59% and 6.58%, respectively.

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Earnings Releases SEC 8-K Item 2.02 confidence 0.9

ORRSTOWN FINANCIAL SERVICES INC reported three months ended September 30, 2022 results: net income $4.8 million, EPS $0.47.

Period: three months ended September 30, 2022
Net income: $4.8 million
EPS: $0.47
Result: reported results

Exact text from the filing

For the three months ended September 30, 2022, net loss, diluted loss per share, return on average assets and return on average equity totaled $4.8 million, $0.47, (0.68%) and (7.92%), respectively.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

ORRSTOWN FINANCIAL SERVICES INC entered into Memorandum of Understanding with Southeastern Pennsylvania Transportation Authority and certain other plaintiffs valued at $15.0 million (effective 2022-11-07).

Action: entry
Agreement: settlement
Counterparty: Southeastern Pennsylvania Transportation Authority and certain other plaintiffs
Value: $15.0 million
Effective: 2022-11-07

Exact text from the filing

On November 7, 2022, Orrstown Financial Services, Inc. (the “Company”) entered into a Memorandum of Understanding (the “MOU”) to settle and resolve the previously disclosed shareholder class action lawsuit

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3 earnings releases filed in the last 30 days. Browse all earnings releases →

ORRSTOWN FINANCIAL SERVICES INC filing history →

Source: SEC EDGAR

accession 0001193125-22-279772

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