Eagle Bancorp, Inc.

day and thank you for standing by. Welcome to the Eagle Bank Inc. Third Quarter 2025 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To answer your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker for today, Eric Newell, Chief Financial Officer of Engel Bank Inc. Please go ahead.

Thank you and good morning. Before we begin the presentation, I'd like to remind everyone that some of the comments made during this call are forward-looking statements. We cannot make any promises about future performance and caution you not to place undue reliance on these forward-looking statements. Our Form 10-K for the fiscal year 2024, Form 10-Qs for the first and second quarter, and current reports on Form 8-K, including the earnings presentation slides, identify important factors that could cause the company's actual results to differ materially from any forward-looking statements made this morning, which speak only as of today. Eagle Bancorp does not undertake to update any forward-looking statements as a result of new information, future events, or developments, unless required by law. This morning's commentary will also include non-GAAP financial information. The earnings release, which is posted in the investor relations section of our website and filed to the SEC, contains reconciliations of this information to the most directly comparable GAAP information. Our periodic reports are available from the company, online at our website, or on the SEC's website. With me today is our Chair, President, and CEO, Susan Reel, Chief Lending Officer for Commercial Real Estate, Ryan Reel, and our Chief Credit Officer, Kevin Gagan. I'll now turn it over to Susan.

Susan Reel Thank you, Eric. Good morning, and thank you for joining us. The third quarter reflected continued progress in addressing asset quality issues and positioning the bank for sustainable profitability. While our results remain below our long-term expectations, we are confident that we are nearing the end of elevated losses from decreased asset values. On credit, we've balanced appropriate urgency that is driven by our near-term view of the office market outlook with an approach that remains methodical and deliberate. We are directly addressing persistent valuation stress of office buildings. We believe that working directly with counterparties that have local knowledge leads to better execution. It is disciplined work, but it is the right path to long-term stability. Specifically, we moved 121 million of criticized office loans to held for sale in the quarter and are working with buyers to sell these assets. Importantly, in the quarter, We also took deliberate steps to reinforce confidence in our asset valuations and reserve levels. First, we engaged with a nationally recognized loan review firm to conduct an independent credit evaluation of our CRE and CNI portfolios. Additionally, we performed our own supplemental internal review of all CRE exposures of $5 million and above. We'll provide more detail on both initiatives later in our remarks, but I'm pleased to report that the findings from both outcomes support the adequacy of our current provisioning. Our core commercial and deposit franchises continue to improve. CNI loans increased by 105 million, representing the majority of our loan originations for the quarter. Average CNI deposits grew 8.6 percent or 134.2 million for the second quarter. This momentum reflects relationship growth, client retention, and new account activity. These are clear signs that our brand, our service model, and our people are earning and deepening trust in the marketplace. Because our decisions are made locally by bankers who know their clients and communities, we are able to respond quickly tailor the structure for each loan, and deliver a level of service larger institutions simply cannot replicate. And we see opportunities to extend that same relationship-driven approach across all our client segments. We're executing on our strategic plan, addressing potential credit issues, diversifying the balance sheet, improving margins, and aligning resources to protect and grow franchise value. These actions are positioning us to further improve funding quality, reduce wholesale funding reliance, and drive toward a lower cost of deposits. Our pre-provision net revenue is believed to improve with time. Our priorities are straightforward. Complete the credit cleanup, deepen core relationships, and deliver improved earnings performance, which should drive improved share value for shareholders. The fundamentals of this company are sound. Our strategy is working, and we are focused on building long-term sustainable value. I'll now turn it to Kevin, who will talk more about credit.