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Orrstown Financial Services , Inc. Reports First Quarter 2021 Results Company Release - 4/20/2021 • Net income of $ 10.2 million for the quarter ; diluted first quarter 2021 EPS of $ 0.92 per share versus $ 0.91 per share in the fourth quarter of 2020 as revenue generation continued at an elevated level , expenses declined and the impact of the COVID - 19 pandemic on the loan portfolio continues to be limited • The Company's Board of Directors authorized the future repurchase of up to 562,000 shares of its outstanding common stock , in addition to the 261,320 shares currently available to repurchase under its 2015 share repurchase program ; shares available for repurchase total 7 % of the Company's outstanding common stock at March 31 , 2021 • Tangible book value per share ( 1 ) increased to $ 20.59 at March 31 , 2021 from $ 19.93 at December 31 , 2020 and $ 16.53 at March 31 , 2020 ; an increase of 25 % year over year • Return on average assets totaled 1.4 % in the first quarter of 2021 compared to 1.5 % in the fourth quarter of 2020 ; strong fee income generation combined with a solid net interest margin and declining expenses bolstered returns in the previous two quarters • Small Business Administration ( " SBA " ) Paycheck Protection Program ( " PPP " ) portfolio averaged $ 463.0 million in the three months ended March 31 , 2021 as compared to $ 442.3 million in the three months ended December 31 , 2020 • Active participant in new round of SBA PPP lending , originating $ 174.2 million , net of deferred fees and costs , in the first quarter of 2021 ⚫ Net interest margin moderated from 3.73 % in the fourth quarter of 2020 to 3.38 % in the first quarter of 2021 due to lower accelerated accretion income and increasing excess liquidity Fee income continues at an elevated level ; total non - interest income totaled $ 7.5 million in the first quarter of 2021 versus $ 7.2 million in the fourth quarter of 2020 • Overall loan growth for the first quarter of 2021 was $ 65.3 million , or 13 % annualized ; commercial loan runoff , excluding SBA PPP loans , totaled 4 % annualized as loan demand was tepid in the first quarter of 2021 ; total gross loans , excluding SBA PPP loans , declined by 9 % annualized • Deposit growth was strong at $ 190.2 million , or 32 % annualized , from December 31 , 2020 to March 31 , 2021 due to government stimulus related activity ; non - interest DDA grew by $ 91 million from December 31 , 2020 to $ 548 million at March 31 , 2021 ; average deposits per branch grew to $ 98 million for the first quarter of 2021 • COVID - 19 related loan deferrals fell to $ 7.5 million at March 31 , 2021 from $ 18.2 million at December 31 , 2020 and $ 239.3 million at June 30 , 2020 • Due to the reduction in loan deferrals , improving outlook and limited losses , $ 1.0 million of allowance for loan losses was reversed • Efficiency ratio at 60 % for first quarter of 2021 compared to 59 % for the fourth quarter of 2020 as net interest income declined • Continued efforts to assist clients , employees and communities affected by COVID - 19 • The Board of Directors declared a cash dividend of $ 0.18 per common share , payable