ORRSTOWN FINANCIAL SERVICES INC (ORRF)
Sector: Financials
2026 Annual Meeting Analysis
ORRSTOWN FINANCIAL SERVICES INC · Meeting: May 5, 2026
Directors FOR
4
Directors AGAINST
0
Say on Pay
FOR
Auditor
FOR
Director Elections
Election of Four Class A Director Nominees to Serve on the Board of Directors for a Three-Year Term Expiring in 2029
Brunner joined the board in 2024 (less than 24 months ago), making him exempt from the TSR underperformance trigger; he brings 30-plus years of financial services and fintech experience relevant to a community bank.
Fainor joined in 2024 (less than 24 months ago) and is exempt from the TSR trigger; he has extensive banking experience including serving as CEO of multiple publicly traded regional bank holding companies.
Joiner has served since 2016, well within the TSR review window, but ORRF's 3-year price return of +89.4% outpaces QABA by +48.1 percentage points, which is below the 65-point threshold required to trigger a No vote for strong-positive TSR; she also serves as the designated financial expert on the Audit Committee with CPA credentials and CFO experience, meeting all independence and qualification standards, and all directors attended at least 75% of meetings.
Segal has served since 2013 and is subject to the TSR review, but ORRF's strong 3-year outperformance of QABA by +48.1 percentage points falls short of the 65-point trigger threshold for strong-positive TSR; he brings financial acumen from extensive banking consulting experience, is independent, and met the 75% attendance requirement.
All four Class A director nominees receive a FOR vote. The two newer directors (Brunner and Fainor, both appointed in 2024) are exempt from the TSR trigger as they joined within the past 24 months. The two longer-tenured directors (Joiner since 2016, Segal since 2013) clear the TSR test because ORRF's 3-year return of +89.4% outpaces the QABA community bank benchmark by +48.1 percentage points, which is well below the 65-point underperformance threshold required to fire a No vote when absolute TSR is strongly positive. No overboarding, independence, attendance, or qualification issues were identified for any nominee.
Say on Pay
✓ FORCEO
Thomas R. Quinn, Jr.
Total Comp
$4,222,617
Prior Support
90.28%%
The prior Say on Pay vote received 90.28% support at the 2025 annual meeting, well above the 70% threshold that would require a response, and shareholders did not raise concerns during the 2025-2026 engagement cycle. The pay program is performance-oriented: incentive compensation (cash STIP plus time-vested and performance-vested equity LTIP awards) constitutes the majority of total pay, with the CEO's roughly $825,000 base salary representing less than 20% of his $4.2 million total compensation — comfortably below the 40% fixed-pay ceiling. The company discloses a meaningful clawback policy compliant with Nasdaq/Rule 10D-1 requirements, performance metrics include multi-year ROAA and TSR conditions on 50% of equity awards, and ORRF's 3-year total shareholder return ranked at the 100th percentile of its compensation peer group, directly aligning above-benchmark incentive payouts with exceptional shareholder outcomes.
Auditor Ratification
✓ FORAuditor
Crowe LLP
Tenure
N/A
Audit Fees
N/A
Non-Audit Fees
N/A
The proxy filing does not include a fee table with specific audit and non-audit fee figures in the extracted text provided, and auditor tenure is not explicitly disclosed; per policy, the tenure trigger requires confirmed data to fire and the non-audit fee ratio trigger requires confirmed fee data, so neither trigger applies — the default FOR vote stands. Crowe LLP is a large national firm (top-ten public accounting firm) appropriate for a community bank with approximately $5.4 billion in assets and a market cap of $686 million, and the Audit Committee has affirmatively assessed Crowe's independence.
Overall Assessment
The 2026 Orrstown Financial Services annual meeting presents three standard proposals: election of four Class A directors, ratification of Crowe LLP as auditor, and an advisory Say on Pay vote. All proposals receive a FOR vote — the director nominees are qualified and the stock's strong 3-year outperformance of the QABA community bank benchmark clears every TSR threshold, the compensation program is well-structured with performance-linked pay and strong shareholder support, and no auditor independence or fee-ratio concerns were identified from the available filing data.