2014 Q4 Form 10-Q Financial Statement

#000082615414000030 Filed on November 07, 2014

View on sec.gov

Income Statement

Concept 2014 Q4 2014 Q3 2013 Q3
Revenue $9.477M $8.982M
YoY Change 5.51% -16.3%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development $254.0K $282.0K
YoY Change -9.93%
% of Gross Profit
Depreciation & Amortization $770.0K $560.0K $720.0K
YoY Change 4.05% -22.22% 7.46%
% of Gross Profit
Operating Expenses $254.0K $282.0K
YoY Change -9.93%
Operating Profit
YoY Change
Interest Expense $1.030M $1.216M
YoY Change -15.3% -28.55%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income $2.960M $5.201M $1.828M
YoY Change 0.68% 184.52% -178.66%
Income Tax -$16.16M $24.00K -$281.0K
% Of Pretax Income -545.95% 0.46% -15.37%
Net Earnings $19.11M $5.177M $2.109M
YoY Change 552.22% 145.47% -109.88%
Net Earnings / Revenue 54.63% 23.48%
Basic Earnings Per Share $0.64 $0.26
Diluted Earnings Per Share $2.351M $0.64 $0.26
COMMON SHARES
Basic Shares Outstanding 8.264M shares 8.111M shares 8.091M shares
Diluted Shares Outstanding 8.122M shares 8.091M shares

Balance Sheet

Concept 2014 Q4 2014 Q3 2013 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets
YoY Change
LONG-TERM ASSETS
Property, Plant & Equipment $24.80M $25.29M $26.38M
YoY Change -6.21% -4.1% -1.95%
Goodwill
YoY Change
Intangibles $414.0K $465.0K $674.0K
YoY Change -33.44% -31.01%
Long-Term Investments
YoY Change
Other Assets $15.40M $0.00 $2.000M
YoY Change 492.31% -100.0%
Total Long-Term Assets
YoY Change
TOTAL ASSETS
Total Short-Term Assets
Total Long-Term Assets
Total Assets $1.190B $1.183B $1.212B
YoY Change 1.07% -2.4% -4.48%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $11.90M $16.40M $46.20M
YoY Change 9.17% -64.5% 294.87%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $86.74M $56.28M $25.32M
YoY Change 46.94% 122.27% 109.26%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $11.90M $16.40M $46.20M
YoY Change 9.17% -64.5% 294.87%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $16.40M
YoY Change -100.0% -56.61%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $0.00 $0.00 $16.40M
YoY Change -100.0% -56.61%
TOTAL LIABILITIES
Total Short-Term Liabilities $11.90M $16.40M $46.20M
Total Long-Term Liabilities $0.00 $0.00 $16.40M
Total Liabilities $1.063B $1.077B $1.123B
YoY Change -2.14% -4.09% -5.01%
SHAREHOLDERS EQUITY
Retained Earnings $1.887M -$17.23M -$30.18M
YoY Change -106.92% -42.92%
Common Stock $430.0K $430.0K $422.0K
YoY Change 1.9% 1.9%
Preferred Stock
YoY Change
Treasury Stock (at cost) $20.00K $20.00K $20.00K
YoY Change 0.0% 0.0%
Treasury Stock Shares 811.0 shares 811.0 shares 811.0 shares
Shareholders Equity $127.3M $106.5M $89.64M
YoY Change
Total Liabilities & Shareholders Equity $1.190B $1.183B $1.212B
YoY Change 1.07% -2.4% -4.48%

Cashflow Statement

Concept 2014 Q4 2014 Q3 2013 Q3
OPERATING ACTIVITIES
Net Income $19.11M $5.177M $2.109M
YoY Change 552.22% 145.47% -109.88%
Depreciation, Depletion And Amortization $770.0K $560.0K $720.0K
YoY Change 4.05% -22.22% 7.46%
Cash From Operating Activities $1.250M $5.330M $1.650M
YoY Change -92.49% 223.03% 135.71%
INVESTING ACTIVITIES
Capital Expenditures -$120.0K $30.00K -$610.0K
YoY Change -81.54% -104.92% 29.79%
Acquisitions
YoY Change
Other Investing Activities $3.790M -$19.21M -$3.000M
YoY Change -107.96% 540.33% -116.77%
Cash From Investing Activities $3.670M -$19.18M -$3.610M
YoY Change -107.6% 431.3% -120.71%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -9.240M 9.570M -12.00M
YoY Change 676.47% -179.75% -69.74%
NET CHANGE
Cash From Operating Activities 1.250M 5.330M 1.650M
Cash From Investing Activities 3.670M -19.18M -3.610M
Cash From Financing Activities -9.240M 9.570M -12.00M
Net Change In Cash -4.320M -4.280M -13.96M
YoY Change -86.84% -69.34% -35.16%
FREE CASH FLOW
Cash From Operating Activities $1.250M $5.330M $1.650M
Capital Expenditures -$120.0K $30.00K -$610.0K
Free Cash Flow $1.370M $5.300M $2.260M
YoY Change -92.08% 134.51% 93.16%

Facts In Submission

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Concentration of Credit Risk</font><font style="font-family:inherit;font-size:10pt;"> &#8211; The Company grants commercial, residential and consumer loans to customers in its market area. Although the Company maintains a diversified loan portfolio, a significant portion of its customers&#8217; ability to honor their contracts is dependent upon economic sectors for construction contractors, residential and non-residential building operators, sales finance, sub-dividers, developers, and various commercial and industrial businesses. Management evaluates each customer&#8217;s creditworthiness on a case-by-case basis. The amount of collateral obtained, if collateral is deemed necessary by the Company upon the extension of credit, is based on management&#8217;s credit evaluation of the customer. Collateral held varies, but generally includes real estate and equipment.</font></div><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The types of securities the Company invests in are included in Note 2, &#8220;Securities Available for Sale&#8221; and the types of lending the Company engages in are included in Note 3, &#8220;Loans Receivable and Allowance for Loan Losses.&#8221;</font></div></div>
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EarningsPerShareBasic
0.87
CY2013Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.26
CY2014Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
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EarningsPerShareDiluted
0.26
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.87
CY2014Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.64
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.24
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15.56
us-gaap Employee Stock Ownership Plan Esop Weighted Average Purchase Price Of Shares Purchased
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11.52
us-gaap Employee Stock Ownership Plan Esop Weighted Average Purchase Price Of Shares Purchased
EmployeeStockOwnershipPlanESOPWeightedAveragePurchasePriceOfSharesPurchased
14.88
CY2013Q3 us-gaap Employee Stock Ownership Plan Esop Weighted Average Purchase Price Of Shares Purchased
EmployeeStockOwnershipPlanESOPWeightedAveragePurchasePriceOfSharesPurchased
12.47
CY2014Q3 us-gaap Equipment Expense
EquipmentExpense
865000 USD
CY2013Q3 us-gaap Equipment Expense
EquipmentExpense
900000 USD
us-gaap Equipment Expense
EquipmentExpense
2528000 USD
us-gaap Equipment Expense
EquipmentExpense
2537000 USD
us-gaap Federal Deposit Insurance Corporation Premium Expense
FederalDepositInsuranceCorporationPremiumExpense
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CY2014Q3 us-gaap Federal Deposit Insurance Corporation Premium Expense
FederalDepositInsuranceCorporationPremiumExpense
403000 USD
CY2013Q3 us-gaap Federal Deposit Insurance Corporation Premium Expense
FederalDepositInsuranceCorporationPremiumExpense
647000 USD
us-gaap Federal Deposit Insurance Corporation Premium Expense
FederalDepositInsuranceCorporationPremiumExpense
1938000 USD
us-gaap Fees And Commissions Depositor Accounts
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4056000 USD
CY2013Q3 us-gaap Fees And Commissions Depositor Accounts
FeesAndCommissionsDepositorAccounts
1448000 USD
CY2014Q3 us-gaap Fees And Commissions Depositor Accounts
FeesAndCommissionsDepositorAccounts
1375000 USD
us-gaap Fees And Commissions Depositor Accounts
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4307000 USD
us-gaap Fees And Commissions Fiduciary And Trust Activities
FeesAndCommissionsFiduciaryAndTrustActivities
3599000 USD
us-gaap Fees And Commissions Fiduciary And Trust Activities
FeesAndCommissionsFiduciaryAndTrustActivities
3551000 USD
CY2013Q3 us-gaap Fees And Commissions Fiduciary And Trust Activities
FeesAndCommissionsFiduciaryAndTrustActivities
1273000 USD
CY2014Q3 us-gaap Fees And Commissions Fiduciary And Trust Activities
FeesAndCommissionsFiduciaryAndTrustActivities
1172000 USD
us-gaap Fees And Commissions Mortgage Banking
FeesAndCommissionsMortgageBanking
1634000 USD
CY2014Q3 us-gaap Fees And Commissions Mortgage Banking
FeesAndCommissionsMortgageBanking
613000 USD
CY2013Q3 us-gaap Fees And Commissions Mortgage Banking
FeesAndCommissionsMortgageBanking
727000 USD
us-gaap Fees And Commissions Mortgage Banking
FeesAndCommissionsMortgageBanking
2584000 USD
us-gaap Fees And Commissions Other
FeesAndCommissionsOther
705000 USD
CY2013Q3 us-gaap Fees And Commissions Other
FeesAndCommissionsOther
283000 USD
CY2014Q3 us-gaap Fees And Commissions Other
FeesAndCommissionsOther
270000 USD
us-gaap Fees And Commissions Other
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789000 USD
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784000 USD
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20352000 USD
CY2014Q3 us-gaap Financing Receivable Allowance For Credit Losses Collectively Evaluated For Impairment
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15816000 USD
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FinancingReceivableAllowanceForCreditLossesIndividuallyEvaluatedForImpairment1
203000 USD
CY2013Q4 us-gaap Financing Receivable Allowance For Credit Losses Individually Evaluated For Impairment1
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613000 USD
CY2013Q4 us-gaap Financing Receivable Collectively Evaluated For Impairment
FinancingReceivableCollectivelyEvaluatedForImpairment
645702000 USD
CY2014Q3 us-gaap Financing Receivable Collectively Evaluated For Impairment
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666016000 USD
CY2013Q4 us-gaap Financing Receivable Individually Evaluated For Impairment
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25335000 USD
CY2014Q3 us-gaap Financing Receivable Individually Evaluated For Impairment
FinancingReceivableIndividuallyEvaluatedForImpairment
14358000 USD
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4 Contract
us-gaap Financing Receivable Modifications Number Of Contracts2
FinancingReceivableModificationsNumberOfContracts2
19 Contract
CY2014Q3 us-gaap Financing Receivable Modifications Number Of Contracts2
FinancingReceivableModificationsNumberOfContracts2
5 Contract
us-gaap Financing Receivable Modifications Number Of Contracts2
FinancingReceivableModificationsNumberOfContracts2
5 Contract
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299000 USD
CY2013Q3 us-gaap Financing Receivable Modifications Post Modification Recorded Investment2
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3607000 USD
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1755000 USD
us-gaap Financing Receivable Modifications Post Modification Recorded Investment2
FinancingReceivableModificationsPostModificationRecordedInvestment2
4131000 USD
us-gaap Financing Receivable Modifications Pre Modification Recorded Investment2
FinancingReceivableModificationsPreModificationRecordedInvestment2
4131000 USD
CY2013Q3 us-gaap Financing Receivable Modifications Pre Modification Recorded Investment2
FinancingReceivableModificationsPreModificationRecordedInvestment2
3607000 USD
CY2014Q3 us-gaap Financing Receivable Modifications Pre Modification Recorded Investment2
FinancingReceivableModificationsPreModificationRecordedInvestment2
321000 USD
us-gaap Financing Receivable Modifications Pre Modification Recorded Investment2
FinancingReceivableModificationsPreModificationRecordedInvestment2
1844000 USD
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4 Contract
us-gaap Financing Receivable Modifications Subsequent Default Number Of Contracts1
FinancingReceivableModificationsSubsequentDefaultNumberOfContracts1
0 Contract
CY2014Q3 us-gaap Financing Receivable Modifications Subsequent Default Number Of Contracts1
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3 Contract
CY2013Q3 us-gaap Financing Receivable Modifications Subsequent Default Number Of Contracts1
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0 Contract
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0 USD
us-gaap Financing Receivable Modifications Subsequent Default Recorded Investment1
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FinancingReceivableModificationsSubsequentDefaultRecordedInvestment1
724000 USD
us-gaap Financing Receivable Modifications Subsequent Default Recorded Investment1
FinancingReceivableModificationsSubsequentDefaultRecordedInvestment1
0 USD
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3264000 USD
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CY2014Q3 us-gaap Financing Receivable Recorded Investment Past Due
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1889000 USD
us-gaap Gain Loss On Sale Of Property Plant Equipment
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0 USD
us-gaap Gain Loss On Sale Of Property Plant Equipment
GainLossOnSaleOfPropertyPlantEquipment
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469000 USD
CY2013Q3 us-gaap Gain Loss On Sale Of Securities Net
GainLossOnSaleOfSecuritiesNet
157000 USD
us-gaap Gain Loss On Sale Of Securities Net
GainLossOnSaleOfSecuritiesNet
1668000 USD
us-gaap Gain Loss On Sale Of Securities Net
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279000 USD
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269000 USD
us-gaap Gains Losses On Sales Of Other Real Estate
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us-gaap Impaired Financing Receivable Average Recorded Investment
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21718000 USD
us-gaap Impaired Financing Receivable Average Recorded Investment
ImpairedFinancingReceivableAverageRecordedInvestment
20044000 USD
CY2014Q3 us-gaap Impaired Financing Receivable Average Recorded Investment
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20497000 USD
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us-gaap Impaired Financing Receivable Interest Income Accrual Method
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216000 USD
us-gaap Impaired Financing Receivable Interest Income Accrual Method
ImpairedFinancingReceivableInterestIncomeAccrualMethod
365000 USD
CY2013Q3 us-gaap Impaired Financing Receivable Interest Income Accrual Method
ImpairedFinancingReceivableInterestIncomeAccrualMethod
187000 USD
CY2014Q3 us-gaap Impaired Financing Receivable Interest Income Accrual Method
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17375000 USD
CY2013Q4 us-gaap Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance
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27349000 USD
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ImpairedFinancingReceivableWithRelatedAllowanceRecordedInvestment
1759000 USD
CY2013Q4 us-gaap Impaired Financing Receivable With Related Allowance Recorded Investment
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676000 USD
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1160000 USD
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1822000 USD
us-gaap Impairment Of Investments
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us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
6856000 USD
CY2013Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
1828000 USD
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IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
5201000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
10052000 USD
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
24000 USD
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-221000 USD
CY2014Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
24000 USD
CY2013Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-281000 USD
us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
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-2372000 USD
CY2014Q3 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
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-1534000 USD
us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
-1320000 USD
CY2013Q3 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
-532000 USD
us-gaap Income Taxes Paid
IncomeTaxesPaid
0 USD
us-gaap Income Taxes Paid
IncomeTaxesPaid
0 USD
us-gaap Increase Decrease In Accrued Interest Receivable Net
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-249000 USD
us-gaap Increase Decrease In Deposits
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us-gaap Increase Decrease In Deposits
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us-gaap Increase Decrease In Loans Held For Sale
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us-gaap Increase Decrease In Loans Held For Sale
IncreaseDecreaseInLoansHeldForSale
2228000 USD
us-gaap Increase Decrease In Other Operating Capital Net
IncreaseDecreaseInOtherOperatingCapitalNet
2579000 USD
us-gaap Increase Decrease In Other Operating Capital Net
IncreaseDecreaseInOtherOperatingCapitalNet
-801000 USD
CY2014Q3 us-gaap Information Technology And Data Processing
InformationTechnologyAndDataProcessing
460000 USD
us-gaap Information Technology And Data Processing
InformationTechnologyAndDataProcessing
1209000 USD
CY2013Q3 us-gaap Information Technology And Data Processing
InformationTechnologyAndDataProcessing
106000 USD
us-gaap Information Technology And Data Processing
InformationTechnologyAndDataProcessing
369000 USD
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622000 USD
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us-gaap Interest And Dividend Income Operating
InterestAndDividendIncomeOperating
27455000 USD
us-gaap Interest And Dividend Income Operating
InterestAndDividendIncomeOperating
28663000 USD
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us-gaap Interest And Dividend Income Securities Other
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152000 USD
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24000 USD
us-gaap Interest And Fee Income Loans And Leases
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22084000 USD
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7739000 USD
CY2014Q3 us-gaap Interest And Fee Income Loans And Leases
InterestAndFeeIncomeLoansAndLeases
7351000 USD
us-gaap Interest And Fee Income Loans And Leases
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23803000 USD
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863401000 USD
CY2014Q3 us-gaap Interest Bearing Deposits In Banks
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20213000 USD
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24565000 USD
us-gaap Interest Expense
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3200000 USD
us-gaap Proceeds From Issuance Of Common Stock
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252000 USD
CY2013Q3 us-gaap Interest Expense
InterestExpense
1216000 USD
CY2014Q3 us-gaap Interest Expense
InterestExpense
1030000 USD
us-gaap Interest Expense
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3881000 USD
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2840000 USD
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124000 USD
us-gaap Interest Expense Long Term Debt
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264000 USD
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us-gaap Interest Expense Short Term Borrowings
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33000 USD
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19000 USD
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11347000 USD
us-gaap Interest Income Expense After Provision For Loan Loss
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24974000 USD
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InterestIncomeExpenseAfterProvisionForLoanLoss
7766000 USD
us-gaap Interest Income Expense After Provision For Loan Loss
InterestIncomeExpenseAfterProvisionForLoanLoss
28363000 USD
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8447000 USD
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7766000 USD
us-gaap Interest Income Expense Net
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23574000 USD
us-gaap Interest Income Expense Net
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25463000 USD
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298000 USD
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2054000 USD
us-gaap Interest Income Securities Taxable
InterestIncomeSecuritiesTaxable
6065000 USD
us-gaap Interest Income Securities Taxable
InterestIncomeSecuritiesTaxable
2716000 USD
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904000 USD
us-gaap Interest Paid
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3974000 USD
us-gaap Interest Paid
InterestPaid
3262000 USD
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3400000 USD
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3151000 USD
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5584000 USD
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104000 USD
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0 USD
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us-gaap Labor And Related Expense
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16717000 USD
us-gaap Labor And Related Expense
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17593000 USD
CY2014Q3 us-gaap Labor And Related Expense
LaborAndRelatedExpense
5902000 USD
CY2014Q3 us-gaap Liabilities
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1076874000 USD
CY2013Q4 us-gaap Liabilities
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1086373000 USD
CY2013Q4 us-gaap Liabilities And Stockholders Equity
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20965000 USD
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16019000 USD
CY2012Q4 us-gaap Loans And Leases Receivable Allowance
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23166000 USD
CY2013Q3 us-gaap Loans And Leases Receivable Allowance
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21252000 USD
CY2014Q2 us-gaap Loans And Leases Receivable Allowance
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CY2013Q2 us-gaap Loans And Leases Receivable Allowance
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CY2014Q3 us-gaap Loans And Leases Receivable Net Of Deferred Income
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680374000 USD
CY2013Q4 us-gaap Loans And Leases Receivable Net Of Deferred Income
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671037000 USD
CY2013Q4 us-gaap Loans And Leases Receivable Net Reported Amount
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650072000 USD
CY2014Q3 us-gaap Loans And Leases Receivable Net Reported Amount
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CY2013Q4 us-gaap Loans Receivable Held For Sale Net
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CY2014Q3 us-gaap Loans Receivable Held For Sale Net
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CY2014Q3 us-gaap Long Term Debt
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us-gaap Loss Contingency Date Of Dismissal
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2013-08-23
us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">CONTINGENCIES</font></div><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The nature of the Company&#8217;s business generates a certain amount of litigation involving matters arising out of the ordinary course of business. Except as described below, in the opinion of management, there are </font><font style="font-family:inherit;font-size:10pt;">no</font><font style="font-family:inherit;font-size:10pt;"> legal proceedings that might have a material effect on the results of operations, liquidity, or the financial position of the Company at this time.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On May&#160;25, 2012, Southeastern Pennsylvania Transportation Authority (&#8220;SEPTA&#8221;) filed a putative class action complaint in the United States District Court for the Middle District of Pennsylvania against the Company, the Bank and certain current and former directors and executive officers (collectively, the &#8220;Defendants&#8221;). The complaint alleges, among other things, that (i)&#160;in connection with the Company&#8217;s Registration Statement on Form S-3 dated February&#160;23, 2010 and its Prospectus Supplement dated March&#160;23, 2010, and (ii)&#160;during the purported class period of March&#160;24, 2010 through October&#160;27, 2011, the Company issued materially false and misleading statements regarding the Company&#8217;s lending practices and financial results, including misleading statements concerning the stringent nature of the Bank&#8217;s credit practices and underwriting standards, the quality of its loan portfolio, and the intended use of the proceeds from the Company&#8217;s March 2010 public offering of common stock. The complaint asserts claims under Sections 11, 12(a) and 15 of the Securities Act of 1933, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, and seeks class certification, unspecified money damages, interest, costs, fees and equitable or injunctive relief. Under the Private Securities Litigation Reform Act of 1995 (&#8220;PSLRA&#8221;), motions for appointment of Lead Plaintiff in this case were due by July&#160;24, 2012. SEPTA was the sole movant and the Court appointed SEPTA Lead Plaintiff on August&#160;20, 2012. </font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Pursuant to the PSLRA and the Court&#8217;s September&#160;27, 2012 Order, SEPTA was given until October&#160;26, 2012 to file an amended complaint and the Defendants until December&#160;7, 2012 to file a motion to dismiss the amended complaint. SEPTA&#8217;s opposition to the Defendant&#8217;s motion to dismiss was originally due January&#160;11, 2013. Under the PSLRA, discovery and all other proceedings in the case are stayed pending the Court&#8217;s ruling on the motion to dismiss. The September&#160;27, 2012 Order specified that if the motion to dismiss were denied, the Court would schedule a conference to address discovery and the filing of a motion for class certification. On October&#160;26, 2012, SEPTA filed an unopposed motion for enlargement of time to file its amended complaint in order to permit the parties and new defendants to be named in the amended complaint time to discuss plaintiff&#8217;s claims and defendants&#8217; defenses. On October&#160;26, 2012, the Court granted SEPTA&#8217;s motion, mooting its September&#160;27, 2012 scheduling Order, and requiring SEPTA to file its amended complaint on or before January&#160;16, 2013 or otherwise advise the Court of circumstances that require a further enlargement of time. On January&#160;14, 2013, the Court granted SEPTA&#8217;s second unopposed motion for enlargement of time to file an amended complaint on or before March&#160;22, 2013. </font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On March&#160;4, 2013, SEPTA filed an amended complaint. The amended complaint expands the list of defendants in the action to include the Company&#8217;s former independent registered public accounting firm and the underwriters of the Company&#8217;s March 2010 public offering of common stock. In addition, among other things, the amended complaint extends the purported 1934 Exchange Act class period from March&#160;15, 2010 through April&#160;5, 2012. </font></div><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Pursuant to the Court&#8217;s March&#160;28, 2013 Second Scheduling Order, on May&#160;28, 2013 all defendants filed their motions to dismiss the amended complaint, and on July&#160;22, 2013 SEPTA filed its &#8220;omnibus&#8221; opposition to all of the defendants&#8217; motions to dismiss. On </font><font style="font-family:inherit;font-size:10pt;">August&#160;23, 2013</font><font style="font-family:inherit;font-size:10pt;">, all defendants filed reply briefs in further support of their motions to dismiss. On December&#160;5, 2013, the Court ordered oral argument on the Orrstown Defendants&#8217; motion to dismiss the amended complaint to be heard on February&#160;7, 2014. Oral argument on the pending motions to dismiss SEPTA&#8217;s amended complaint was held on April&#160;29, 2014. A decision from the court on the motions to dismiss is pending. </font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Second Scheduling Order stays all discovery in the case pending the outcome of the motions to dismiss, and informs the parties that, if required, a telephonic conference to address discovery and the filing of SEPTA&#8217;s motion for class certification will be scheduled after the Court&#8217;s ruling on the motions to dismiss. </font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The matter is currently progressing through the legal process. The Orrstown Defendants believe that the allegations in the amended complaint are without merit and intend to defend themselves vigorously against those claims, and as a result, no accrual for losses have been established for this matter.</font></div></div>
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Reclassification</font><font style="font-family:inherit;font-size:10pt;"> &#8211; Certain amounts in the </font><font style="font-family:inherit;font-size:10pt;">2013</font><font style="font-family:inherit;font-size:10pt;"> consolidated financial statements have been reclassified to conform to the 2014 presentation.</font></div></div>
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2013Q4 us-gaap Treasury Stock Shares
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us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Use of Estimates &#8211;</font><font style="font-family:inherit;font-size:10pt;"> The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</font></div><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for losses on loans and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, and the valuation allowance required on its deferred tax assets. In connection with the determination of the allowance for losses on loans and foreclosed real estate, management obtains independent appraisals for significant properties.</font></div><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">While management uses available information to recognize losses on loans and foreclosed real estate, future additions to the allowances may be necessary based on changes in local economic conditions, and our borrowers' ability to manage their debt through different business cycles. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company&#8217;s allowance for losses on loans and foreclosed real estate. Such agencies may require the Company to recognize additions to the allowance based on their judgments concerning information available to them at the time of their examination. Because of these factors, management&#8217;s estimate of credit losses inherent in the loan portfolio and the related allowance may change in the near term.</font></div><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company has established a full valuation allowance on its net deferred tax assets, based on the Company&#8217;s previous taxable losses, projections for future taxable income, and other available evidence, in which management determined it was &#8220;more likely than not&#8221; that some portion of the asset may not be realized. Management may need to modify its judgment in this regard from one quarter to the next, and should continued improvement occur in operating performance, the need for a full valuation allowance may be reduced or eliminated.</font></div></div>
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
4000 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0 shares
CY2014Q3 orrf Available For Sale Securities Continuous Unrealized Loss Position12 Months Or Longer Aggregate Losses Accumulated In Aoci
AvailableForSaleSecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAggregateLossesAccumulatedInAOCI
2420000 USD
CY2013Q4 orrf Available For Sale Securities Continuous Unrealized Loss Position12 Months Or Longer Aggregate Losses Accumulated In Aoci
AvailableForSaleSecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAggregateLossesAccumulatedInAOCI
1560000 USD
CY2013Q4 orrf Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Accumulated In Aoci
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionAggregateLossesAccumulatedInAOCI
9026000 USD
CY2014Q3 orrf Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Accumulated In Aoci
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionAggregateLossesAccumulatedInAOCI
3382000 USD
CY2013Q4 orrf Available For Sale Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses Accumulated In Aoci
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAggregateLossesAccumulatedInAOCI
7466000 USD
CY2014Q3 orrf Available For Sale Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses Accumulated In Aoci
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAggregateLossesAccumulatedInAOCI
962000 USD
CY2014Q3 orrf Available For Sale Securities Mortgage Backed Securities And Collateralized Mortgage Obligations Amortized Cost
AvailableForSaleSecuritiesMortgageBackedSecuritiesAndCollateralizedMortgageObligationsAmortizedCost
325557000 USD
CY2014Q3 orrf Available For Sale Securities Mortgage Backed Securities And Collateralized Mortgage Obligations Fair Value
AvailableForSaleSecuritiesMortgageBackedSecuritiesAndCollateralizedMortgageObligationsFairValue
326310000 USD
CY2014Q3 orrf Balance Of Loans Serviced For Others
BalanceOfLoansServicedForOthers
316365000 USD
CY2014Q3 orrf Minimum Amount Of Loan On Which Review Have Been Made Annually
MinimumAmountOfLoanOnWhichReviewHaveBeenMadeAnnually
1000000 USD
CY2013Q4 orrf Financing Receivable Modified Balance End Of Period Number Of Contract
FinancingReceivableModifiedBalanceEndOfPeriodNumberOfContract
12 Contract
CY2014Q3 orrf Impaired Financing Receivables Allocated Allowance
ImpairedFinancingReceivablesAllocatedAllowance
4393000 USD
CY2014Q3 orrf Financing Receivable Modified Balance End Of Period Number Of Contract
FinancingReceivableModifiedBalanceEndOfPeriodNumberOfContract
25 Contract
CY2013Q4 orrf Balance Of Loans Serviced For Others
BalanceOfLoansServicedForOthers
322653000 USD
CY2013Q3 orrf Collection And Problem Loan
CollectionAndProblemLoan
184000 USD
CY2014Q3 orrf Collection And Problem Loan
CollectionAndProblemLoan
215000 USD
orrf Collection And Problem Loan
CollectionAndProblemLoan
533000 USD
orrf Collection And Problem Loan
CollectionAndProblemLoan
565000 USD
CY2014Q3 orrf Concentration Risk Credit Risk Financial Instrument Maximum Exposure Charged Recovery To Noninterest Expense
ConcentrationRiskCreditRiskFinancialInstrumentMaximumExposureChargedRecoveryToNoninterestExpense
-245000 USD
orrf Concentration Risk Credit Risk Financial Instrument Maximum Exposure Charged Recovery To Noninterest Expense
ConcentrationRiskCreditRiskFinancialInstrumentMaximumExposureChargedRecoveryToNoninterestExpense
-70000 USD
CY2013Q3 orrf Concentration Risk Credit Risk Financial Instrument Maximum Exposure Charged Recovery To Noninterest Expense
ConcentrationRiskCreditRiskFinancialInstrumentMaximumExposureChargedRecoveryToNoninterestExpense
76000 USD
orrf Concentration Risk Credit Risk Financial Instrument Maximum Exposure Charged Recovery To Noninterest Expense
ConcentrationRiskCreditRiskFinancialInstrumentMaximumExposureChargedRecoveryToNoninterestExpense
-184000 USD
CY2013Q4 orrf Concentration Risk Credit Risk Financial Instrument Maximum Exposure Liability
ConcentrationRiskCreditRiskFinancialInstrumentMaximumExposureLiability
529000 USD
CY2014Q3 orrf Concentration Risk Credit Risk Financial Instrument Maximum Exposure Liability
ConcentrationRiskCreditRiskFinancialInstrumentMaximumExposureLiability
345000 USD
orrf Contractual Term To Restore To Accrual Status
ContractualTermToRestoreToAccrualStatus
P9M
orrf Cumulative Loss Position Significant Negative Evidence Against Realizability Of Deferred Tax Asset Period
CumulativeLossPositionSignificantNegativeEvidenceAgainstRealizabilityOfDeferredTaxAssetPeriod
P3Y
CY2013Q4 orrf Cumulative Loss Position Significant Negative Evidence Against Realizability Of Deferred Tax Asset Period
CumulativeLossPositionSignificantNegativeEvidenceAgainstRealizabilityOfDeferredTaxAssetPeriod
P3Y
CY2014Q3 orrf Debt Securities Other Than Temporarily Impaired
DebtSecuritiesOtherThanTemporarilyImpaired
0 USD
CY2013Q4 orrf Debt Securities Other Than Temporarily Impaired
DebtSecuritiesOtherThanTemporarilyImpaired
0 USD
orrf Deferred Tax Assets Charitable Contribution Carryforwards Expiration Period
DeferredTaxAssetsCharitableContributionCarryforwardsExpirationPeriod
2019
CY2014Q3 orrf Deferred Tax Assets Low Income Housing Credit Carry Forward
DeferredTaxAssetsLowIncomeHousingCreditCarryForward
1348000 USD
CY2013Q4 orrf Deferred Tax Assets Low Income Housing Credit Carry Forward
DeferredTaxAssetsLowIncomeHousingCreditCarryForward
1022000 USD
orrf Deferred Tax Assets Low Income Housing Credit Carryforward Expiration Period
DeferredTaxAssetsLowIncomeHousingCreditCarryforwardExpirationPeriod
2034
CY2013Q4 orrf Deferred Tax Assets Nonaccrual Loan Interest
DeferredTaxAssetsNonaccrualLoanInterest
341000 USD
CY2014Q3 orrf Deferred Tax Assets Nonaccrual Loan Interest
DeferredTaxAssetsNonaccrualLoanInterest
178000 USD
CY2013Q4 orrf Deferred Tax Assets Off Balance Sheet Reserves
DeferredTaxAssetsOffBalanceSheetReserves
204000 USD
CY2014Q3 orrf Deferred Tax Assets Off Balance Sheet Reserves
DeferredTaxAssetsOffBalanceSheetReserves
177000 USD
orrf Deferred Tax Assets Operating Loss Carryforwards Expiration Period
DeferredTaxAssetsOperatingLossCarryforwardsExpirationPeriod
2032
CY2013Q4 orrf Deferred Tax Assets Retirement Plans And Salary Continuation
DeferredTaxAssetsRetirementPlansAndSalaryContinuation
1585000 USD
CY2014Q3 orrf Deferred Tax Assets Retirement Plans And Salary Continuation
DeferredTaxAssetsRetirementPlansAndSalaryContinuation
1667000 USD
CY2013Q4 orrf Deferred Tax Liabilities Purchase Accounting Adjustments
DeferredTaxLiabilitiesPurchaseAccountingAdjustments
495000 USD
CY2014Q3 orrf Deferred Tax Liabilities Purchase Accounting Adjustments
DeferredTaxLiabilitiesPurchaseAccountingAdjustments
439000 USD
CY2014Q3 orrf Deferred Tax Liabilities Unrealized Gains On Available For Sale Securities Gross
DeferredTaxLiabilitiesUnrealizedGainsOnAvailableForSaleSecuritiesGross
27000 USD
CY2013Q4 orrf Deferred Tax Liabilities Unrealized Gains On Available For Sale Securities Gross
DeferredTaxLiabilitiesUnrealizedGainsOnAvailableForSaleSecuritiesGross
0 USD
CY2014Q3 orrf Financing Receivable Modified Balance End Of Period
FinancingReceivableModifiedBalanceEndOfPeriod
4153000 USD
CY2013Q4 orrf Financing Receivable Modified Balance End Of Period
FinancingReceivableModifiedBalanceEndOfPeriod
7535000 USD
CY2014Q3 orrf Held To Maturity Or Trading Securities
HeldToMaturityOrTradingSecurities
0 USD
CY2013Q4 orrf Held To Maturity Or Trading Securities
HeldToMaturityOrTradingSecurities
0 USD
CY2013Q4 orrf Impaired Financing Receivables Allocated Allowance
ImpairedFinancingReceivablesAllocatedAllowance
3238000 USD
orrf Increase Decrease In Interest Payable And Other Liabilities
IncreaseDecreaseInInterestPayableAndOtherLiabilities
-253000 USD
orrf Increase Decrease In Interest Payable And Other Liabilities
IncreaseDecreaseInInterestPayableAndOtherLiabilities
5474000 USD
orrf Maturity Of Interest Bearing Deposits
MaturityOfInterestBearingDeposits
P90D
orrf Maximum Percentage Of Credit Worthiness Of Borrower
MaximumPercentageOfCreditWorthinessOfBorrower
0.43
orrf Maximum Percentage Of Loan To Value Ratio Of Value Of Real Estate Taken As Collateral
MaximumPercentageOfLoanToValueRatioOfValueOfRealEstateTakenAsCollateral
0.90
orrf Maximum Percentage Of Loan To Value Ratio Upon Loan Origination
MaximumPercentageOfLoanToValueRatioUponLoanOrigination
0.80
CY2014Q3 orrf Minimum Amount Of Loan Rated As Substandard
MinimumAmountOfLoanRatedAsSubstandard
250000 USD
orrf Write Down Of Other Real Estate Owned
WriteDownOfOtherRealEstateOwned
154000 USD
orrf Write Down Of Other Real Estate Owned
WriteDownOfOtherRealEstateOwned
29000 USD
orrf Securities Purchased Not Yet Settled
SecuritiesPurchasedNotYetSettled
34578000 USD
CY2014Q3 orrf Minimum Amount On Which Annual Updated Appraisals For Criticized Loans Is Required
MinimumAmountOnWhichAnnualUpdatedAppraisalsForCriticizedLoansIsRequired
250000 USD
orrf Non Interest Income Expense Net
NonInterestIncomeExpenseNet
-38000 USD
orrf Non Interest Income Expense Net
NonInterestIncomeExpenseNet
364000 USD
CY2014Q3 orrf Non Interest Income Expense Net
NonInterestIncomeExpenseNet
40000 USD
CY2013Q3 orrf Non Interest Income Expense Net
NonInterestIncomeExpenseNet
44000 USD
CY2014Q3 orrf Number Of Legal Proceedings That Have Material Effect
NumberOfLegalProceedingsThatHaveMaterialEffect
0 Claim
orrf Number Of Notes Split
NumberOfNotesSplit
2 Note
orrf Number Of Offices
NumberOfOffices
22 Office
orrf Other Real Estate Foreclosed Assets Valuation Adjustment
OtherRealEstateForeclosedAssetsValuationAdjustment
29000 USD
CY2014Q3 orrf Other Real Estate Foreclosed Assets Valuation Adjustment
OtherRealEstateForeclosedAssetsValuationAdjustment
145000 USD
orrf Other Real Estate Foreclosed Assets Valuation Adjustment
OtherRealEstateForeclosedAssetsValuationAdjustment
154000 USD
CY2013Q3 orrf Other Real Estate Foreclosed Assets Valuation Adjustment
OtherRealEstateForeclosedAssetsValuationAdjustment
29000 USD
orrf Percentage Of Deferred Tax Assets
PercentageOfDeferredTaxAssets
0.50
orrf Percentage Of Strong Loan To Value
PercentageOfStrongLoanToValue
0.70
orrf Provision For Income Taxes Related To Net Security Gains
ProvisionForIncomeTaxesRelatedToNetSecurityGains
584000 USD
CY2013Q3 orrf Provision For Income Taxes Related To Net Security Gains
ProvisionForIncomeTaxesRelatedToNetSecurityGains
55000 USD
orrf Provision For Income Taxes Related To Net Security Gains
ProvisionForIncomeTaxesRelatedToNetSecurityGains
98000 USD
CY2014Q3 orrf Provision For Income Taxes Related To Net Security Gains
ProvisionForIncomeTaxesRelatedToNetSecurityGains
164000 USD
CY2013Q3 orrf Real Estate Owned Expenses
RealEstateOwnedExpenses
55000 USD
orrf Real Estate Owned Expenses
RealEstateOwnedExpenses
261000 USD
orrf Real Estate Owned Expenses
RealEstateOwnedExpenses
115000 USD
CY2014Q3 orrf Real Estate Owned Expenses
RealEstateOwnedExpenses
201000 USD
orrf Securities Purchased Not Yet Settled
SecuritiesPurchasedNotYetSettled
0 USD
dei Amendment Flag
AmendmentFlag
false
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q3
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2014
dei Document Period End Date
DocumentPeriodEndDate
2014-09-30
dei Document Type
DocumentType
10-Q
dei Entity Central Index Key
EntityCentralIndexKey
0000826154
CY2014Q4 dei Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
8263737 shares
dei Entity Filer Category
EntityFilerCategory
Accelerated Filer
dei Entity Registrant Name
EntityRegistrantName
ORRSTOWN FINANCIAL SERVICES INC
dei Trading Symbol
TradingSymbol
ORRF

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0000826154-14-000030.txt Edgar Link pending
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orrf-20140930.xml Edgar Link completed
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