Orrstown Financial Services Inc (ORRF) 2025 Q3 法說會逐字稿

Good morning. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to the Orrstown Financial Services Inc., third-quarter 2025 earnings conference call. (Operator Instructions)

早安.我叫蒂芬妮，今天我將擔任你們的會議接線生。在此，我謹代表奧爾斯頓金融服務公司歡迎各位參加 2025 年第三季財報電話會議。（操作說明）

I will now turn the call over to Tom Quinn, President and Chief Executive Officer of Orrstown Financial Services Inc., and Orrstown Bank, who will begin the conference. Mr. Quinn, please go ahead.

現在我將把電話交給奧爾斯頓金融服務公司和奧爾斯頓銀行的總裁兼執行長湯姆·奎因，他將開始本次會議。奎因先生，請繼續。

Thank you, Tiffany. And good morning. I'd like to thank everyone for participating in Orrstown's third-quarter 2025 earnings conference call, both by telephone and through the webcast. If you have not read the earnings release we issued yesterday afternoon, you may access it along with the financial tables and schedules by going to our website, www.orrstown.com. Once there, you can click on the Investor Relations link, and then on the Events and Presentation link.

謝謝你，蒂芙尼。早安.我要感謝大家透過電話和網路直播參加 Orrstown 2025 年第三季財報電話會議。如果您尚未閱讀我們昨天下午發布的獲利報告，您可以造訪我們的網站 www.orrstown.com 查看該報告以及財務報表和附表。進入網站後，您可以點擊“投資者關係”鏈接，然後點擊“活動和演示”鏈接。

Also, before we start, I would like to mention that today's presentation may contain forward-looking information. Cautionary statements about the information are included in the earnings release, the investor presentation, and our SEC filings. The presentation also includes non-GAAP financial measures as identified in the earnings release and the investor presentation. The appropriate reconciliations to GAAP are included in the appendices.

另外，在開始之前，我想提一下，今天的演講可能包含前瞻性資訊。有關資訊的警示性聲明已包含在盈利報告、投資者簡報和我們提交給美國證券交易委員會的文件中。該簡報還包括獲利報告和投資者簡報中確定的非GAAP財務指標。附錄中包含了與公認會計原則 (GAAP) 的相應調節表。

Joining me today on the call are Orrstown Banks' Senior Executive Vice President and Chief Operating Officer Adam Metz; as well as Executive Vice President and Chief Financial Officer Neil Kalani. Our Chief Revenue Officer, Zach Khuri; Chief Risk Officer, Bob Coradi; and our Chief Credit Officer, Dave Chajkowski, will also participate on the call.

今天與我一起參加電話會議的有奧爾斯頓銀行高級執行副總裁兼首席營運官亞當·梅茨，以及執行副總裁兼首席財務官尼爾·卡拉尼。我們的首席營收長 Zach Khuri、首席風險長 Bob Coradi 和首席信貸長 Dave Chajkowski 也將參加此次電話會議。

Our financial highlights for the quarter are summarized on slide 3 of the deck. We delivered another quarter of excellent results. Loan growth was strong. In the third quarter, we achieved 4.9% annualized loan growth after taking some steps early in the year to align the acquired portfolio with our risk profile. We have seen good growth in the last two quarters.

本季財務亮點總結在簡報的第 3 頁。我們又一個季度取得了優異的業績。貸款成長強勁。第三季度，我們在年初採取了一些措施，使收購的貸款組合與我們的風險狀況相匹配，最終實現了 4.9% 的年化貸款成長率。過去兩個季度我們都取得了良好的成長。

Net interest margin was 4.11% for the third quarter of '25 compared to 4.07% for the second quarter of '25. We believe that we are pricing loans prudently and managing funding costs well, which is evidenced by the stable margin.

2025 年第三季淨利差為 4.11%，而 2025 年第二季淨利差為 4.07%。我們相信，我們對貸款的定價是審慎的，對融資成本的控制也是良好的，穩定的利潤率證明了這一點。

Fee income remained a core strength of the organization during the third quarter. Fee income as a percentage of operating revenue was 20.8%, the second consecutive quarter that this ratio was nearly 21%. Expenses continued to decline. Non-interest expense declined by $1.3 million compared to the prior quarter. Our efficiency ratio decreased from 60.3% to 56.4% quarter to quarter.

第三季度，手續費收入仍是該機構的核心優勢。手續費收入佔營業收入的百分比為 20.8%，這是該比率連續第二季接近 21%。支出持續下降。與上一季相比，非利息支出減少了 130 萬美元。我們的效率比率從季度初的 60.3% 下降到季度末的 56.4%。

All this translated into our strongest quarter of earnings on record with diluted EPS of $1.13, our return on assets of 1.60% and return on equity nearly 16%. We believe that our successful execution of last year's merger with Codorus Valley is evident in our financial performance.

所有這些都轉化為我們有史以來最強勁的季度盈利，稀釋後每股收益為 1.13 美元，資產回報率為 1.60%，淨資產回報率接近 16%。我們相信，去年與 Codorus Valley 的合併取得成功，這一點已從我們的財務表現中得到體現。

At this time, I would like to turn the call over to Adam Metz for a discussion on our balance sheet. Adam?

此時，我想把電話交給亞當‧梅茨，讓他來討論一下我們的資產負債表。亞當？

Thank you, Tom. Good morning, everyone. We have previously discussed the steps that we've taken to proactively protect the bank's risk profile and position the bank to be successful in all economic scenarios. These steps seem particularly relevant given the credit concerns disclosed by other institutions last week.

謝謝你，湯姆。各位早安。我們之前已經討論過我們為積極保護銀行的風險狀況並使銀行能夠在所有經濟形勢下取得成功而採取的措施。鑑於其他機構上週披露的信貸問題，這些措施似乎特別重要。

As a reminder, these steps included managing our CRE portfolio to reduce concentration, stress testing the C&I portfolio for the potential impact of tariffs, reviewing our TM platform for clients sending foreign wires and proactively discussing strategies with them, and reevaluated lending relationships above $2 million, adjusted risk ratings as deemed appropriate, and presented some of them with exit plans.

提醒一下，這些措施包括管理我們的商業房地產投資組合以降低集中度，對商業和工業投資組合進行壓力測試以評估關稅的潛在影響，審查我們向客戶匯款的TM平台並主動與他們討論策略，重新評估超過200萬美元的貸款關係，酌情調整風險評級，並向其中一些人提供退出計劃。

Our relationship banking model requires our sales teams to keep in touch close with our clients. We have regular conversations with our clients on a variety of topics, recently, including tariffs, the government shutdown, the Pennsylvania budget impasse, and general economic conditions, helping them navigate the evolving landscape and plan accordingly.

我們的關係型銀行模式要求銷售團隊與客戶保持密切聯繫。我們定期與客戶就各種主題進行交流，最近包括關稅、政府停擺、賓州預算僵局和總體經濟狀況，幫助他們應對不斷變化的情況並制定相應的計劃。

After the first quarter, we indicated that these steps had resulted in higher-than-expected reductions in loan balances but expressed optimism that steps had taken to protect credit quality and laid a solid foundation for future growth. We believe that this solid foundation was reflected in our third-quarter results.

第一季結束後，我們表示，這些措施導致貸款餘額下降幅度超出預期，但我們對保護信貸品質和為未來成長奠定堅實基礎所採取的措施表示樂觀。我們相信，這堅實的基礎已體現在我們第三季的業績上。

As Tom said in the third quarter, we achieved 4.9% annualized loan growth. We continue to lean into our relationship banking model, where high engagement and local decision making differentiate us in the market and allow us to meet client needs with speed and care.

正如湯姆在第三季所說，我們實現了4.9%的年化貸款成長率。我們將繼續堅持以客戶關係為導向的銀行服務模式，透過高度互動和在地化決策，使我們在市場上脫穎而出，並使我們能夠快速、周到地滿足客戶需求。

Importantly, credit quality remains sound. Net charge-offs were again nominal in the quarter. Classified loans decreased by $1.7 million to $64.1 million at quarter end. Although non-accrual loans increased by $3.8 million to $26.2 million at quarter end, most of this increase was primarily related to one relationship within the commercial construction and development portfolio.

重要的是，信貸品質依然良好。本季淨沖銷額仍然很低。截至季末，不良貸款減少 170 萬美元，至 6,410 萬美元。儘管季度末非應計貸款增加了 380 萬美元，達到 2,620 萬美元，但這一增長主要與商業建築和開發組合中的一項關係有關。

We are mindful of some economic uncertainty and its potential impact on the overall business environment. We remain focused on credit quality and plan to continue to grow prudently. And we, along with an independent third party, regularly evaluate our portfolio for new risk considerations.

我們意識到當前經濟狀況存在一些不確定性，以及這些不確定性可能對整體商業環境造成的影響。我們將繼續專注於信貸質量，並計劃繼續穩健成長。我們會定期與獨立的第三方一起評估我們的投資組合，以考慮新的風險因素。

We view our capital position as an organizational strength, which provides us with significant strategic flexibility for the future. We are well capitalized by all measures.

我們認為自身的資本實力是一項組織優勢，這為我們未來的策略發展提供了極大的彈性。無論從哪個角度衡量，我們的資金都非常充足。

Neil Kalani, our CFO, will now discuss our third-quarter results in more detail. Neil?

接下來，我們的財務長尼爾·卡拉尼將更詳細地討論我們第三季的業績。尼爾？

Thank you, Adam. Good morning, everyone. The third quarter was another successful quarter for us. We recorded $21.9 million of net income or $1.13 in earnings per diluted share. This equates to return on average assets of 1.6%, return on average equity of 15.7%, and return on average tangible common equity around 20%. All these metrics place us near the top of our peer group and were achieved through multiple avenues.

謝謝你，亞當。各位早安。第三季對我們來說又是一個成功的季度。我們錄得淨利2190萬美元，即每股攤薄收益1.13美元。這相當於平均資產回報率為 1.6%，平均權益回報率為 15.7%，平均有形普通股回報率約為 20%。所有這些指標都使我們在同行業中名列前茅，並且是透過多種途徑實現的。

Looking at slide 4, the margin increased by 4 basis points to 4.11% in the third quarter. Loan pricing on new originations and increased purchase accounting accretion drove loan yields higher, while the acceleration of $300,000 of debt issuance costs associated with the subordinated debt redemption increased the cost of funds a bit.

從投影片 4 可以看出，第三季利潤率成長了 4 個基點，達到 4.11%。新發放貸款的定價和增加的購買會計增值推高了貸款收益率，而與次級債務贖回相關的 30 萬美元債務發行成本的加速增加略微提高了資金成本。

On September 30, the company redeemed $32.5 million of subordinated debt notes, which were at a rate of 7.72% for most of the second quarter. This action will reduce interest expense going forward while the company maintains its flexibility from a capital perspective.

9 月 30 日，該公司贖回了 3,250 萬美元的次級債務票據，這些票據在第二季的大部分時間利率為 7.72%。此舉將降低公司未來的利息支出，同時保持公司在資本方面的彈性。

The other notable result from this quarter is the increase in loan interest to $66.0 million from $63.2 million in the second quarter. We place a significant focus on generating the necessary growth to offset the impact of the reduction in purchase accounting accretion on loans over time and maintaining a margin near its current levels.

本季另一個值得注意的結果是從第二季的 6,320 萬美元增加到 6,600 萬美元。我們非常重視實現必要的成長，以抵消購買會計增值減少對貸款的影響，並保持利潤率接近目前的水平。

Being asset sensitive as rates come down, I do expect the margin to contract. Competition remains heavy on both loan and deposit pricing, and that will certainly factor into our ability to maintain or increase the margin.

由於資產對利率的敏感性，我預期利率下降會導致利差縮小。貸款和存款定價方面的競爭仍然十分激烈，這肯定會影響我們維持或提高利潤率的能力。

Fee income is discussed on slide 5. We saw an increase in non-interest income to $13.4 million in the third quarter from $12.9 million for the second quarter. This represents almost 21% of revenues. Swap fees were substantial at $800,000. Service charges increased by $400,000 due to higher volumes and credit card incentives earned.

費用收入在第5張投影片中討論。第三季非利息收入從第二季的 1,290 萬美元增加到 1,340 萬美元。這相當於總收入的近 21%。互換費用高達 80 萬美元。由於交易量增加和信用卡獎勵，服務費增加了 40 萬美元。

Wealth management continues to perform extremely well, and we're starting to see mortgage volumes increase. I would expect the normalized quarterly run rate to be in the $12.5 million to $13 million range going forward. The team continues to succeed in generating additional avenues of fee income, but it's going to fluctuate from quarter to quarter.

財富管理業務持續表現優異，我們開始看到抵押貸款業務量有所成長。我預計未來季度正常化運行率將在 1250 萬美元至 1300 萬美元之間。團隊在創造額外費用收入方面持續取得成功，但收入會因季度而異。

On slide 6, you can see that the non-interest expenses have declined by $1.3 million from the prior quarter. The key highlight here is that we no longer have merger-related expenses. The efficiency ratio decreased again to 56% with the continued goal of getting below 55%.

從第 6 張投影片可以看出，非利息支出比上一季減少了 130 萬美元。關鍵在於我們不再有與合併相關的費用。效率比率再次下降至 56%，目標是降至 55% 以下。

The numbers still include the impact of additional third-party consulting services that are expected to continue but will decline over the next several periods. Considering the decline in expenses while continuing to invest in the bank's future, I would expect a quarterly run rate around $36 million going forward, plus some standard inflationary impact next year.

這些數字仍然包括預計會持續但在未來幾個時期內會下降的第三方諮詢服務的影響。考慮到支出下降，同時繼續投資於銀行的未來，我預計未來每季的運行率約為 3,600 萬美元，再加上明年一些標準的通貨膨脹影響。

Our credit quality is discussed on slide 7. Once again, we recorded a small provision with a small amount of net charge-offs. Our allowance coverage ratio was 1.21% at September 30, which we continue to believe adequately addresses the risk of loss in the loan portfolio.

我們的信用品質在第7張投影片中進行了討論。我們再次提列了少量準備金，淨沖銷金額也很小。截至 9 月 30 日，我們的撥備覆蓋率為 1.21%，我們仍然認為這足以應對貸款組合的損失風險。

As Tom always says and Adam just reiterated, we lead with risk. Therefore, we are cognizant of general industry concerns about credit, and our proactive approach helps us properly assess our portfolio, identify risks, and take any steps necessary to mitigate them.

正如湯姆常說的，亞當也再次強調的，我們以冒險為先。因此，我們意識到整個行業對信貸的普遍擔憂，而我們積極主動的做法有助於我們正確評估我們的投資組合，識別風險，並採取任何必要的措施來減輕風險。

Slide 8 covers the positive trends in our key metrics for the past year. The growth in the earnings metrics noted in those charts speaks for itself. In addition, TCE has grown to 8.8%, and our tangible book value per share has returned to pre-merger levels, with a strong buildup expected from here.

第 8 張投影片介紹了過去一年我們關鍵指標的正面趨勢。圖表中顯示的獲利指標成長情況本身就說明了一切。此外，TCE 已成長至 8.8%，每股有形帳面價值已恢復到合併前的水平，預計未來還將強勁成長。

Our loan portfolio is discussed on slide 9. Both Tom and Adam covered our growth for the corner. But we're now close to $4 billion in loans, with an average yield of 6.58%. We had $224 million of loan production during the third quarter and continue to have a solid pipeline. Payoffs continue to have some impact on the loan growth during the third quarter.

我們的貸款組合在第9頁幻燈片中進行了討論。Tom 和 Adam 都負責我們角落區域的成長。但我們現在的貸款總額已接近 40 億美元，平均收益率為 6.58%。第三季我們的貸款發放額為 2.24 億美元，目前仍有穩定的貸款項目儲備。第三季度，還款持續對貸款成長產生一定影響。

On slide 10, deposits increased by $17 million. We tapped into some brokered options for the first time in a while as the team works on building long-term core deposits. The cost of deposits declined again by a couple basis points in the third quarter. We adjusted deposit pricing downward later in the third quarter, and that impact is expected to be reflected in the fourth quarter.

第 10 頁顯示，存款增加了 1,700 萬美元。團隊致力於建立長期核心存款，因此我們一段時間以來首次利用了一些經紀選擇權。第三季存款成本又下降了幾個基點。我們在第三季後期下調了存款價格，預計這一影響將在第四季度反映出來。

As I've discussed in the past, we held deposit rates higher than previously anticipated. We determined now with the appropriate time to start adjusting them to be more in line with market rates. The 88% loan to deposit ratio provides us with sufficient liquidity to fund our loan pipeline without placing a heavy reliance on alternative funding sources.

正如我之前討論過的，我們將存款利率維持在高於預期水準。我們現在認為時機成熟，應該開始調整這些價格，使其更符合市場價格。88% 的貸款存款比率為我們提供了充足的流動性，可以為我們的貸款項目提供資金，而無需嚴重依賴其他融資來源。

Slide 11 highlights the performance of the investment portfolio. We continue to take strategic actions with the portfolio to ensure it performs well in the current environment. The yield of 4.67% remains at the top of peer levels. Net unrealized losses decreased by $9 million as market rates declined, and the duration declined slightly from the prior quarter to 4.4%.

第 11 張投影片重點介紹了投資組合的表現。我們將繼續對投資組合採取策略性措施，以確保其在當前環境下表現良好。4.67%的收益率仍處於同業最高水準。由於市場利率下降，未實現淨損失減少了 900 萬美元，久期較上一季略為下降至 4.4%。

Our regulatory capital ratios are addressed on slide 12, and the total risk-based capital ratio did decline during the quarter as a result of the redemption of subordinated debt. But despite that, we feel good about our current capital position, as well as our ability to grow capital rapidly in the future.

我們的監理資本比率在第 12 頁投影片中提及，由於贖回次級債務，本季總創投比率有所下降。儘管如此，我們對目前的資本狀況以及未來快速成長資本的能力感到滿意。

I'd like to now turn the call back over to Adam Metz for his closing remarks. Adam?

現在我把電話交還給亞當·梅茨，請他作總結發言。亞當？

Thank you, Neil. The numbers speak for themselves. We are proud of our quarterly results. As Tom said, we believe that our successful execution of last year's merger is evident in our financial performance. We are optimistic about the future, both in the short and long term.

謝謝你，尼爾。數字本身就能說明一切。我們為季度業績感到自豪。正如湯姆所說，我們相信去年成功完成的合併已從我們的財務表現中體現。我們對未來充滿信心，無論短期或長期。

We would now like to open the call to questions. Before we get started, the operator will briefly review the instructions with you.

現在我們開始接受提問。開始之前，操作員會先和您簡單回顧一下操作說明。

(Operator Instructions) Tim Switzer, KBW.

（操作說明）蒂姆·斯威策，KBW。

Hey, good morning. Thank you for taking my question. I have a follow-up on your -- Neil, your commentary regarding the NIM. I understand the asset sensitivity here and with the Fed rate cuts, probably expect to see some near-term pressure.

嘿，早安。感謝您回答我的問題。尼爾，關於你對NIM的評論，我還有一些後續問題。我了解這裡的資產敏感性，隨著聯準會降息，預計短期內會面臨一些壓力。

How should we think about the trajectory of the downward movement assuming we get maybe one or two more rate cuts over the next few months? And is there a good rule of thumb at all you guys have for how many base points to the NIM each 25 basis points cut is?

假設未來幾個月我們可能還會獲得一到兩次降息，我們該如何看待利率下行的軌跡？你們有沒有什麼好的經驗法則，可以估算出每降低 25 個基點，淨利差 (NIM) 會降低多少個基點？

It's going to vary a little bit. I'd put out there -- kind of the guidance I've given is the 4 to 15 -- 4.0% to 4.15% range. Obviously, the accretion fluctuates, so that's going to impact that. It -- down a couple cuts, whether it's 225 basis point cuts isn't going to impact us substantially. What will impact it is just competitive pricing where we -- if we consistently price the loans where they're at and we're able to continue to pull deposit costs down, we should be able to maintain where we're at through the next couple of cuts. But depending on where the market is and push to generate new loans, we'll see where that pricing falls out.

會略有不同。我給的指導意見是 4 到 15——也就是 4.0% 到 4.15% 的範圍。顯然，吸積過程是波動的，所以這肯定會產生影響。就算只是下調幾級利率，例如下調 225 個基點，也不會對我們產生實質的影響。影響它的只有競爭性定價，如果我們能夠持續將貸款定價在目前的水平，並且能夠繼續降低存款成本，那麼我們應該能夠在接下來的幾次降息中保持目前的水平。但最終的定價將取決於市場狀況和新貸款發放的強度。

So that's more so a factor is the competitive side of things and then continuing to grow the balance sheet and where the margin's going to end up. So we -- and we've taken with the sub debt redemption and some other things and some deposit reductions that we took recently and we'll continue to look at, but my hope is that we maintain around here with, again, purchase accounting being the -- around here to like, potentially like 5 basis points lower, so in that range, with the potential that any accretion might have some positive or negative impact depending on the timing.

所以，這更多的是一個競爭因素，然後是資產負債表的持續成長以及利潤率最終會達到什麼水準。因此，我們已經採取了次級債務贖回和其他一些措施，以及最近採取的一些存款減少措施，我們將繼續關注這些措施，但我希望我們能夠維持在這個水平附近，再次強調，購買會計處理是——在這個水平附近，可能會降低5個基點左右，在這個範圍內，任何增值都可能根據時間的不同產生一些正面或負面的影響。

Okay, got you. And your comments regarding the comp -- the heavy competition on both loan and deposits, are you able to provide any commentary around where that's coming from? Is it the larger competitors in your market, others closer to your size? Is there any geographies or categories where it's a little bit more competitive?

好的，明白了。關於您提到的競爭—貸款和存款方面都存在激烈的競爭，您能否就此提供一些評論？是市場上規模較大的競爭對手，還是規模與你相近的其他競爭對手？是否存在競爭較為激烈的地區或類別？

I think it really depends on the market. As we talked about our growth markets, lean towards the Baltimore, Lancaster, Harrisburg markets, and those competitors vary in those markets. And so I don't know that we see consistent. But on any given relationship or any given opportunity, it does remain competitive.

我認為這真的取決於市場情況。正如我們之前討論的成長市場一樣，我們傾向於巴爾的摩、蘭開斯特、哈里斯堡市場，而這些市場中的競爭對手各不相同。所以，我不知道我們是否能看到一致性。但在任何特定的關係或任何特定的機會中，競爭仍然存在。

And Tim, to add to what I just said and clarify what I just said, the other -- like just from a numbers perspective, yeah, as rates, as the rates come down, we will have some negative impact to the margin. But it's the actions that we take going forward to -- that can offset that, so there's a big focus on that from a pricing perspective to -- we know the model just on a standalone basis, with no -- on a static basis is going to have the margin come down, but we can take steps to offset that.

提姆，補充一下我剛才說的，並澄清一下我剛才說的，另一個——就數字而言，是的，隨著利率下降，利潤率會受到一些負面影響。但接下來我們要採取的行動可以抵消這種影響，因此從定價的角度來看，我們非常關注這一點——我們知道，如果僅從獨立的角度來看，沒有其他因素，這種模式的利潤率將會下降，但我們可以採取措施來抵消這種影響。

Okay, that makes sense. And on the loan side of competition, do you have a sense for how much of that is being driven by maybe some competitors who had pulled back on CRE or other areas momentarily and now they're kind of reentering? Or is it just that maybe loan growth demand is a little bit more tepid and so there's just less of the pie?

嗯，這說得通。在貸款領域的競爭方面，您是否認為其中有多少是由一些競爭對手暫時撤出商業地產或其他領域，現在又重新進入這些領域所驅動的？或者，是因為貸款成長需求比較疲軟，所以可分配的份額比較小？

Yeah, I think we see a mix of that, Tim. But I would tell you that we have been able heretofore to get the price that we sort of set to the markets. In fact, they've done better than that. And I think that's a tribute -- as I said in my comments, I think it really is a tribute to our relationship model. We're very high touch, very engaged with our clients and our prospects, and it makes a difference.

是的，我認為我們看到了這兩種情況的混合，Tim。但我可以告訴你們，我們之前一直能夠獲得我們向市場設定的價格。事實上，他們做得比這更好。我認為這是一種致敬——正如我在評論中所說，我認為這確實是對我們關係模式的致敬。我們非常注重與客戶和潛在客戶的溝通互動，這確實帶來了顯著的效果。

Got it. Makes sense. Okay, well, thank you for answering all my questions.

知道了。有道理。好的，非常感謝您回答我的所有問題。

Thanks. Thank you.

謝謝。謝謝。

Gregory Zingone, Piper Sandler.

格雷戈里·津戈內，派珀·桑德勒。

Good morning, guys. Great quarter and hope everyone's doing well.

各位早安。本季表現出色，希望大家一切都好。

Good morning.

早安.

Just to go back to the NIM for a second, do you have a spot NIM for September?

再回到NIM的話題，你們9月有NIM的名額嗎？

It's in the low 4s.

大約4秒出頭。

Okay. And I'm pivoting the credit for a minute. Would you be able to provide some color on what those largest credits are in classified today?

好的。我暫時把重點轉移到功勞。您能否詳細介紹一下目前分類中最大的那些信貸項目是什麼？

Yes, the larger credits are -- there's some CRE, there's an auto dealer, and a variety of other C&I credits.

是的，較大的抵免額度包括——一些商業房地產抵免、汽車經銷商抵免以及各種其他商業和工業抵免。

Would you be able to pin down a dollar figure in terms of maybe like your top one or two credits in there?

您能否具體說明一下，例如您最主要的一兩項作品的價值是多少美元？

The top couple of credits, with total, in classified, total about $20 million.

排名前兩位的貸款，總額（保密）約 2000 萬美元。

And you said it's roughly probably two or three credits that make up that balance?

你說大概是兩到三學分就構成了那個餘額？

That's right.

這是正確的。

Okay. And then since quarter end, are there any new updates with any of those balances that you could share with us today?

好的。那麼，自季度末以來，這些餘額方面是否有任何新的更新，您今天可以和我們分享嗎？

Well, I would tell you, the -- we talked about some of the movement into classified, and there was an owner-occupied credit, that we received a -- it was $1.3 million. And it had moved into non -- we had moved it to non accrual in the third quarter.

嗯，我會告訴你，我們談到了一些進入分類領域的趨勢，還有一項業主自住房屋稅收抵免，我們獲得了 130 萬美元。在第三季度，我們已將其轉為非應計項目。

Subsequently, we've received a paydown of just under $900,000 on that. So that just demonstrates, I think, that we're pretty conservative and conservative on our -- in our decisions to move credits into non-accrual. And as another point worth noting on our non-accrual balances is that approximately 50% of them are current for their monthly principal and interest payments.

隨後，我們收到了近 90 萬美元的還款。所以我認為這正好表明，我們在將學分轉為非應計制的決定上相當保守。另外值得一提的是，我們的非應計餘額中約有 50% 已按時支付每月本金和利息。

Okay. Awesome, thank you for the color on that. And last question for me, the early 5% loan guide for next year, do you have a lending focus in mind for how you want the mix to look like? Thank you.

好的。太棒了，謝謝你提供的色彩資訊。最後一個問題，關於明年的早期 5% 貸款指南，您是否已經考慮過貸款重點，以及您希望貸款組合呈現怎樣的形態？謝謝。

Yeah, I mean, like as we've talked about, we feel like we have some CRE capacity. We were very proactive in addressing that pre-merger and immediately post-merger. But we've -- recently, in the last quarter here, we've hired some additional talent on the C&I side, particularly in our middle market group.

是的，我的意思是，就像我們之前討論過的，我們覺得我們有一些商業房地產的能力。我們在合併前和合併後立即積極主動地解決了這個問題。但是，最近，也就是上個季度，我們在 C&I 方面，特別是我們的中階市場團隊，招募了一些額外的人才。

And so we have some opportunity there. We feel like we can deliver a unique experience in the middle market space. And then we -- as I've said, talent wins, and I think we have some real talent there.

所以，我們在這方面有一些機會。我們相信我們能夠在中端市場領域提供獨特的體驗。然後我們——正如我所說，天賦決定勝負，我認為我們隊裡有一些真正的天才球員。

Thanks, everyone.

謝謝大家。

Thank you.

謝謝。

David Long, Raymond James.

David Long，Raymond James。

Good morning, everyone. Neil, you mentioned that you may see some NIM pressure with the rate cuts, but then you said that there -- you can take some steps to offset such compression. What are -- specifically, what are some of the tools that you have to help you avoid some NIM compression, if that looks like we're going to see the rate cuts?

各位早安。尼爾，你提到降息可能會給淨利差帶來一些壓力，但你又說，你可以採取一些措施來抵銷這種壓力。具體來說，如果利率下調，您有哪些工具可以幫助您避免淨利差壓縮？

It really comes from the pricing perspective. If we've got -- so we made some adjustments to the deposit costs and we've been intentionally higher kind of coming out -- as I've talked about in the past, coming out of the system conversion and the merger. Just from a client perspective, it made a lot of sense to not push down on rates as quickly as others may have. So we have some capacity there to pull down and the new funding opportunities impacts that as well.

這其實是從定價角度出發的。如果我們已經——所以我們對存款成本進行了一些調整，而且我們有意提高了存款成本——正如我過去談到的那樣，這是由於系統轉換和合併造成的。僅從客戶的角度來看，不急於像其他人一樣迅速降低價格是非常合理的。因此，我們在這方面有一定的能力來降低成本，而新的資金機會也會對此產生影響。

But the other piece of it again, it's -- again, the answer is really competitive driven. On the loan pricing side, we continue to the price at the levels that we have been, and then we should be able to maintain. But there's that balance of generating the growth, and also kind of maintaining the margins, so we need to find that sweet spot. So if it makes sense for us as an organization to generate that growth, we may come down a little more on the margin. But a lot of -- again, it's market driven, competitive driven.

但另一方面，答案仍然是——這完全是競爭驅動的。在貸款定價方面，我們將繼續維持目前的定價水平，並且應該能夠保持下去。但是，在實現成長和維持利潤率之間需要找到平衡點，所以我們需要找到這個最佳平衡點。因此，如果對我們組織而言，實現這種成長是有意義的，我們可能會在利潤率上再降低一些。但很多時候——再說一遍，這是市場驅動、競爭驅動的。

Sure, got it. And then with that outlook, the 4% to 4.15% on the NIM, what are your assumptions on the shape of the curve over the next several quarters and how much does that -- if we do see a flatter curve or an inverted curve, how much pressure could that put on the NIM versus your expectations?

好的，明白了。基於上述預期，淨利差在 4% 到 4.15% 之間，您對未來幾季的曲線形狀有何假設？如果曲線趨於平緩或出現倒掛，這會對您的淨利差造成多大的壓力？

My modeling assumes the existing -- our modeling assumes the existing curve that then probably then I would expect it to flatten out a little bit over time. But again, we'll just -- we'll manage against that. That's part of the thought process and seeing some contraction there. But if longer-term rates do work their way back up, that will benefit us.

我的模型假設現有的曲線——我們的模型假設現有的曲線，那麼我預計隨著時間的推移，它可能會稍微趨於平緩。但是，我們還是會——我們會想辦法克服這個問題的。這是思考過程的一部分，也看到了這方面的一些收縮。但如果長期利率真的回升，那對我們有利。

Got it.

知道了。

Yeah, so if we start to see some steepening and slope there, it'll benefit us.

是的，所以如果我們看到那裡開始出現一些陡峭的坡度，那對我們來說是有好處的。

Right, thanks.

好的，謝謝。

That concludes the Q&A portion of the presentation. Mr. Quinn, I turn the call back over to you for concluding remarks.

問答環節到此結束。奎因先生，現在我把電話交還給您，請您做總結發言。

Thank you, operator, and thank you all for participating today. As always, if we can clarify any of the items discussed on the call this morning or in our earnings release, please feel free to give us a call or contact us, and I wish you all a wonderful day. Thank you. Bye now.

謝謝操作員，也謝謝今天所有參與者。像往常一樣，如果您對今天早上電話會議或財報發布中討論的任何事項有任何疑問，請隨時致電或聯繫我們，祝大家度過美好的一天。謝謝。再見了。

This concludes the Orrstown Financial Services Inc., third-quarter 2025 earnings conference call. You may disconnect your line at this time.

Orrstown Financial Services Inc. 2025 年第三季財報電話會議到此結束。現在您可以斷開線路了。