Eagle Financial Services Inc

Thank you for standing by. My name is Carly, and I will be your conference operator today. At this time, I would like to welcome everyone to the Eagle Financial Services, Inc. Q3 earnings call. All lines have been placed on mute to prevent any background noise. I would now like to turn the call over to Nick Smith, EVP, Deputy CFO. Please go ahead.

Thank you. Good morning. Thank you for joining us for our third quarter earnings conference call. Before we begin, please note that the information provided during this call will contain forward-looking statements. Actual results or outcomes may differ materially from those expressed by those statements. I'd like to direct all listeners to read the cautionary note regarding forward-looking statements contained in our most recent annual report on Form 10-K filed with the SEC and in our earnings release, as well as the risk factors identified in the annual report and in our more recent periodic reports filed with the SEC. Relevant factors that could cause actual results to differ materially from any forward-looking statements are included in the earnings release and in our SEC filings. The company does not undertake to update any of the forward-looking statements made today. A copy of our earnings release, which contains non-GAAP financial measures, is available on our website at investors.bankofclark.bank. And information regarding our use of the non-GAAP financial measures may be found in the body of the earnings release. And a reconciliation to their most directly comparable GAAP financial measures is included at the end of the earnings release for your reference. This quarter, along with our earnings release, we published an updated investor presentation that has additional disclosures that we believe will be helpful. The presentation can be accessed on our investor relations website Please also note that as we discuss our financials today, unless otherwise noted, all the prior period comparisons will be with the second quarter of 2025. Joining us for management this morning, Brandon Laurie, our Chief Executive Officer, Joseph Trovich, our Chief Banking Officer, and Kate Chappell, our Chief Financial Officer.

At this time, I'll turn the call over to Brandon Laurie. Brandon? Thank you, Nick, and thank you all for listening to the call today. Last night, we reported net income for the third quarter of $5.6 million. The efforts of our team are evident in our financial results as we continue to improve our funding composition and continue to deliver solutions for our clients across our markets. I will take a minute to update you on credit. Credit quality showed improvement during the third quarter, with non-performing assets declining to $14.3 million, or 0.74% of total assets. compared to 17.5 million or 0.86% of total assets of June 30, 2025. This reduction was primarily driven by the partial resolution of a large non-accrual loan, which resulted in a $4.8 million payment with a $1.1 million charge-off. Offsetting this improvement were two new commercial real estate relationships, each approximately $1.8 million, added to non-accrual status during the quarter. Both are well collateralized based on recent appraisals. Workout efforts continue, on two previously disclosed large relationships included in our MPAs. The first one was a partially owner-occupied property whose owner had passed away unexpectedly and had an outstanding balance of $2.2 million at 930. The courts had assigned an executor, and the bank has filed and been found in favor on summary judgment, allowing the bank to move forward with the foreclosure process in the fourth quarter. The second relationship A multifamily portfolio in Washington, D.C. now totals $5.5 million in exposure. As mentioned earlier, we received partial resolution on the largest property, which was sold by a short sale in Q3, creating a $1.1 million efficiency balance, which was then fully charged off. Remaining properties are under receivership and are actively being made ready for sale. We do not anticipate having to make any significant additional write-downs on these properties. Overall, While NPAs remain elevated versus prior year levels, the court demonstrates meaningful progress in resolving issues and maintaining strong collateral positions. Looking ahead, we maintain a positive outlook on the credit environment and remain confident in the performance trajectory of Eagle Financial Services and the Bank of Clark for the remainder of 2025. I'll let Kate walk you through the financial results with greater detail. Kate?