Orrstown Bank CEO Interview: Thomas R. Quinn Jr.

• On 3:32 pm EDT, Tuesday October 6, 2009

67 WALL STREET, New York - October 6, 2009 - The Wall Street Transcript has just published its Northeast and Mid-Atlantic Regional Banks Report offering a timely review of the sector to serious investors and industry executives. This 130 page feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Residential Mortgage Situation -- Regional Banks Mergers and Acquisitions Timing Strategy -- Commercial Mortgage Portfolio Decay -- Timing Of Commercial Mortgage Portfolio Bad Debt Write Offs-- FDIC Hit List For Bank Closings -- Mutual Holding Company Structure -- Interest Rate Scenarios -- Banking Pricing Power -- Expensive Bank Valuations -- Tangible Book As Guide For Bank Stock Pricing -- Distressed Sales Of Community and Regional Banks -- TARP Program -- Attitude Of Institutional Investors Towards Resurgence in Community Banking -- Unique Business Models -- Regional Bank Boards Looking For Exit

Companies include: BB and T (BBT); Colonial (CNB); First Niagara (FNFG); PNC (PNC); National City (NCC-PA); Harleysville National (HNBC); Citizens First Bancorp (CTZN); Regions Financial (RF); Bank of America (BAC); SunTrust Banks (STI); Pinnacle Financial (PNFP); Northwest Bancorp Inc. (NWSB); Beneficial (BNCL); Investor Savings Bancorp (ISBC); Territorial Bancorp (TBNK); FNB Bancorp (FNBG.OB); National Penn (NPBC); Trustco Bank (TRST); KeyBank (KEY); M and T Bank (MTB); New York Community Bancorp (NYB); Bank of New York Mellon (BK); Wells Fargo and Company (WFC); JPMorgan Chase and Co. (JPM); Wachovia (WB); Harleysville Savings Bank (HARL); SVB Financial (SIVB); Signature Bank (SBNY); Provident Bank (PBKS); Valley National Bank (VLY); Community Bank System (CBU); NBT Bankcorp (NBTB); Fulton (FULT); Citibank ©; Allied Irish (AIB); Bank of Hawaii (BOH); First Horizon Bank (FHN); Comerica (CMA); Synovus (SNV); Zions (ZION); South Financial Group (TSFG); Bancorp (TBBK); Legg Mason (LM); IBERIABANK Corp. (IBKC); Wilmington Trust (WL); S and T Bancorp (STBA); PHH (PHH); Goldman Sachs (GS); Citigroup ©; U.S. Bancorp (USB); Fifth Third Bancorp (FITB); KeyCorp (KEY); Lehman Brothers; Colonial; Washington Mutual; TD Banknorth (TD), Lakeland (LBAI), Westfield Financial, Inc. (WFD), United Financial Bancorp, Inc. (UBNK), Chicopee Bancorp, Inc. (CBNK)

In the following brief excerpt from the 130 page, Thomas R. Quinn Jr. CEO of Orrstown Bank, discusses the outlook for the sector and for investors.

Thomas R. Quinn Jr. brings over 16 years of banking experience to Orrstown Bank and served most recently as President and CEO of Fifth Third Bank's South Florida Affiliate based out of Naples, Fla. Prior to joining Fifth Third Bank, Mr. Quinn was associated with Citigroup in a variety of executive positions where he had responsibility for commercial and retail banking, including the investment and insurance business units. Originally from Plattsburgh, N.Y., Mr. Quinn is a graduate of Edinboro University of Pennsylvania.

TWST: Let's begin with a general overview and summary of Orrstown Financial Services Inc.

Mr. Quinn: Orrstown Bank was founded in 1919 and just celebrated its 90th anniversary this year. We are a 21-branch regional community bank with a significant presence in south-central Pennsylvania and northern Maryland, primarily along the Interstate 81 corridor. Orrstown Bank has approximately $1.1 billion in assets and about $810 million in deposits. We are well capitalized, with Tier 1 capital slightly over 10%. We continue to have solid asset growth of over 18% this year over last year, while maintaining our focus on loan quality. Through the second quarter of this year, our non-performing loans were less than 1% of total loans outstanding. We didn't need or want the TARP funds and our current market cap is about $240 million.

TWST: What are the key factors that differentiate your bank from its competition? Is it your business focus, your geography, quality of the assets, what might some of those factors be?

Mr. Quinn: I think first and foremost, you start with our people. We have some really talented bankers in the organization and continue to attract and retain the best and brightest because of our strong culture, solid track record and the exceptional talent pool in the region. We have Shippensburg University 500 yards from our corporate headquarters and are surrounded by private colleges and universities, including Gettysburg, Dickinson, Messiah and two Penn State branch campuses. Number two is our business model that we live every day. It may sound clich�, but we help customers realize their dreams. In a small community, you know the dry cleaner, you know the automobile dealer, you know the restaurateur. We have not only come to understand the specific needs of local businesses, but how to tailor the right products and services to enable them to focus on their core business and allow us to handle the banking. In the end, it really comes down to execution, and I think we have built a better mousetrap that gives us tremendous opportunity for growth. So in summary: great people, positive corporate culture, local bankers who are close to their customers, and we're in a part of the country that's got tremendous growth opportunities.

The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This 130 page special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online .

The Wall Street Transcript does not endorse the views of any interviewees nor does it make stock recommendations.

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