CNB Financial Corporation

Good afternoon and welcome to the CNB Financial Corporation third quarter 2026 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Michael Peduzzi, President and Chief Executive Officer. Please go ahead.

Hello, and welcome to the third quarter 2026 earnings call for CMB Financial Corporation. I'm Michael Peduzzi, the President and CEO of CMB Financial Corporation and its main operating entity, CMB Bank. and joining me today is our Chief Financial Officer, Tito Lima, our Chief Operating Officer, Michael Noah and our Chief Credit Officer, Greg Dixon. Following the overview and presentation of our financial highlights, we will have time available for questions from those calling into today's presentation. Mike, Tito, Greg, thank you for joining me for today's discussion. We will start with some key highlights regarding our performance through the third quarter of 2026. Tito, as some of our comments may include discussions comparing our 2026 performance to that of similar periods in 2025, would you briefly discuss the financial statement recast we disclosed in our earnings release regarding our prior year results?

Sure, Mike. Good afternoon, everyone. In regards to the prior year recast, After we acquired DSSA in July of 2025, we adopted a GAAP standard numbered ASU-2025-08 entitled Financial Services, Credit Losses, Purchased Financial Assets. My apologies for the formality, but we want to be very clear in disclosing the applicable GAAP. The resulting recast from our adoption of this standard means that for our prior year or third quarter 2025, and Nine Month 2025 results, we eliminated the recognition of the day one allowance for loan loss provision expense that had been previously reported after the July 2025 acquisition date. The adoption of this GAAP standard had no impact on the economics or cash flows of the acquired assets, but affected the timing of credit loss expense recognition. This change is not the result of an error, correction or restatement of previously issued financial statements, but rather it ensures GAAP compliance comparability between current year periods and prior year periods. Accordingly, certain comparative amounts for 2025 presented in our earnings release or which may be discussed here may differ from those previously reported for these prior year periods. Thank you for giving me time to explain this, Mike.