ORRSTOWN FINANCIAL SERVICES, INC. (PARENT COMPANY ONLY) FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

ORRSTOWN FINANCIAL SERVICES, INC. (PARENT COMPANY ONLY) FINANCIAL INFORMATION

The following are the condensed balance sheets, statements of income, statements of comprehensive income (loss) and statements of cash flows for the parent company, as of or for the years ended December 31:

Balance Sheet



(Dollars in thousands)	2015			2014
Assets
Cash in Orrstown Bank	$	14,032		$	389
Deposits with other banks	321			0
Securities available for sale	73			67
Investment in Orrstown Bank	117,163			126,084
Other assets	1,561			797
Total assets	$	133,150		$	127,337

Liabilities	$	89		$	72
Shareholders’ Equity
Common stock	435			430
Additional paid-in capital	124,317			123,392
Retained earnings	7,939			1,887
Accumulated other comprehensive income	1,199			1,576
Treasury stock	(829		)	(20		)
Total shareholders’ equity	133,061			127,265
Total liabilities and shareholders’ equity	$	133,150		$	127,337

Statements of Income



(Dollars in thousands)	2015			2014			2013
Income
Dividends from bank subsidiary	$	17,900		$	0		$	0
Other interest and dividend income	3			2			5
Other income	35			70			46
Total income	17,938			72			51
Expenses
Share-based compensation	34			17			129
Management fee to Bank	500			277			173
Other expenses	1,821			1,042			1,241
Total expenses	2,355			1,336			1,543
Income (loss) before income taxes and equity in undistributed income or distributions in excess of income of bank subsidiary	15,583			(1,264		)	(1,492		)
Income tax benefit	(831		)	(474		)	(477		)
Income (loss) before equity in undistributed income (distributions in excess of income) of bank subsidiary	16,414			(790		)	(1,015		)
Equity in undistributed income (distributions in excess of income) of bank subsidiary	(8,540		)	29,932			11,019
Net income	$	7,874		$	29,142		$	10,004

Statements of Comprehensive Income



(Dollars in thousands)	2015			2014			2013

Income (loss) before equity in undistributed income of subsidiary	$	16,414		$	(790	)	$	(1,015	)
Unrealized holding gains (losses) on securities available for sale arising during the period, net of tax	4			(1		)	0
Total other comprehensive income (loss)	4			(1		)	0
Comprehensive income (loss) before equity in undistributed income and other comprehensive income of subsidiary	16,418			(791		)	(1,015		)
Equity in undistributed income and other comprehensive income of subsidiary	(8,921		)	36,322			4,378
Total comprehensive income	$	7,497		$	35,531		$	3,363

Statements of Cash Flows



(Dollars in thousands)	2015			2014			2013
Cash flows from operating activities:
Net income	$	7,874		$	29,142		$	10,004
Adjustments to reconcile net income to cash used in operating activities:
Deferred income taxes	(53		)	(25		)	0
Gains on affiliate dissolution	0			(54		)	0
Equity in (undistributed income) distributions in excess of income of bank subsidiary	8,540			(29,932		)	(11,019		)
Share-based compensation	34			17			129
Net change in other liabilities	17			(26		)	62
Other, net	(611		)	(270		)	(182		)
Net cash provided by (used in) operating activities	15,801			(1,148		)	(1,006		)
Cash flows from investing activities:
Investment in bank subsidiary	0			(161		)	0
Other	0			89			0
Net cash used in investing activities	0			(72		)	0
Cash flows from financing activities:
Dividends paid	(1,822		)	0			0
Proceeds from issuance of common stock	794			105			253
Payments to repurchase common stock	(809		)	0			0
Net cash provided by (used in) financing activities	(1,837		)	105			253
Net increase (decrease) in cash	13,964			(1,115		)	(753		)
Cash, beginning balance	389			1,504			2,257
Cash, ending balance	$	14,353		$	389		$	1,504