Orrstown Conclusion

                                                                              Introduction

This paper intended to introduce Orrstown’s financial condition through three perspectives: industry analysis, performance of Orrstown and Eagle Bank and quality of Orrstown’s financial statement and income statement. We used balance sheet statement, income statement and UBPR’s summary ratios statement of those two banks to give out an overview of Orrstown’s financial condition.  

In the industry analysis, we use several metrics from UBPR’s report of summary ratios and balance sheet statement to make a comparison between Orrstown and financial service industry. And through the analysis, we found that Orrstown has over performed within industry.

In the analysis of Orrstown Bank’s performance, we analyze the business scale and target customers. Orrstown has banking, borrowing and treasury management. Moreover, Orrstown Bank is the reginal institution that serves individuals, small and mid-sized business. To have a better understanding of Orrstown, we choose a bank that has similar features but some differences to Orrstown Bank, which is called Eagle Bank. Orrstown and Eagle have the same financial activities and clients. They are the significant parts of the local financial service system. Moreover, Orrstown and Eagle have the same economic structure because of their debt ratio, and equity ratio is close. However, there are some diversities between Orrstown and Eagle. Their capital scales are similar at the beginning of 2006. After three years, Eagle Bank extended its business and became larger and larger in assets, liabilities and equity. Although some of the financial indicators perform well, a large number of indexes cannot catch Eagle Bank. In conclusion, Orrstown Bank, and Eagle Bank had the same starting point in 2006, but Eagle outperformed Orrstown in 2012.