Norwood Financial Corp.

Good day and thank you for standing by. Welcome to the Norwood Financial Corp. Second Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Mackenzie Jackson, Corporate Secretary. Ma'am, please go ahead.

Thank you, Michelle. Good morning, everyone, and welcome to our second quarter 2026 earnings conference call. With me today are Jim Donnelly, our President and CEO, and John McCaffrey, our CFO. The press release we issued earlier this morning, together with the presentation material that accompanies our remarks, are available on the investor relations section of our webpage. Comments made by any participant on today's call may include forward-looking statements. These statements are subject to various risks and uncertainties and other factors that are difficult to predict. Actual results may differ materially from those expressed or implied, and we assume no obligation to update any forward-looking information. Please refer to our most recent Form 10-K and other subsequent reports filed with the SEC for more information about risks related to forward-looking statements. During our discussion, we may refer to certain non-GAAP financial measures. These measures are useful for analysts, investors, and management to evaluate ongoing performance. A reconciliation of these measures to GAAP financial results is provided in our presentation. I will now turn the call over to Jim.

Thank you, Mackenzie. And good morning, everyone. I'm pleased to report that the entire Norwood team performed well in the second quarter, continuing our strong performance as we build momentum and deliver another quarter of improving financial results. Net income was $26.8 million, an increase of 41% compared with last year, and another record for us as we continue to elevate our performance. Organic growth plus Presence Bank's acquisition contributed to the increase. Net interest margin expanded to 3.9%, an increase of 47 basis points compared with last year. Net income and earnings per share also increased, improving 48% and 25% respectively on an adjusted basis with higher adjusted returns on average assets and tangible equity. By nearly every metric, it was a great quarter as we continue to benefit from our repositioned portfolio, favorable interest rate movement, strong team performance, and the acquisition. As we disclosed last month, June 18th, one of our customers' loans totaling $22 million filed Chapter 11 bankruptcy. We have been involved in the process, engaging in discussions with all parties to achieve an agreeable outcome. Based on the process as it stands and anticipated result, we have recorded a net charge off of $700,000. I believe this is an acceptable outcome, giving the total exposure. The bankruptcy process is ongoing, and we are continuing to monitor its progress to understand the impact on us. I am proud of the team that has been leading this process for us, ensuring that the outcome is in the best interest of the bank and our shareholders. Next, I'd like to review our 2026 strategic priorities. This priority is to successfully complete the presence bank integration. I am pleased to report that we have completed all of our planned integration activities. The integration team has done a great job leading us through this process, going above and beyond to achieve these milestones in addition to their normal daily responsibilities. The experience we have gained from this integration will serve us well as we continue to explore and pursue acquisitions in the future. We have combined our systems to drive common operating practices across the organization with the completion of our core integration. We have completed the rollout and convergence of our brand across all entities and branches. While the integration is complete, we continue to engage in open conversations across all locations and functions to identify and adopt best-in-class practices and policies that will enable us to better serve our communities while improving our results. I'm excited about this activity and looking forward to how The combined organizations will continue to drive operational excellence well beyond the integration, making us stronger together than we were before. On a second strategic priority is to increase operating efficiency and elevate customer experience through AI. I previously shared how we're implementing the commercial credit system from Presence Bank broadly across our organization. The system uses embedded AI and machine learning to enhance the productivity of our talented credit officers by bringing automation, speed, and quality to the process. We anticipate the outcome of this system will be better reporting to provide our credit officers with helpful insights to make informed decisions. This is a great example of how we plan to implement AI tools to empower our employees to perform higher value functions by automating activities where possible. We have put together a three-year plan for the rollout of AI in each department in the bank. We believe that this thoughtful and measured approach will allow our employees to fully engage AI agents to supplement their work and better serve our customers. Our third objective is to strengthen our talent pool and deepen our leadership bench. This begins with our executive team and extends throughout the organization. Now that our team has expanded with the addition of the talented employees from Presence Bank, we are refocusing our initiatives to develop our workforce, investing in our people to empower them to serve our communities. We have been working on our succession planning and employee development for more than three years. The newest announcement of change in our senior leadership team is an example of investing in a talented employee and planning for the retirement of a valued leader well before the event. This allows for a smooth transition. One update I would like to share with you is the appointment of Steve Daniels as Chief Lending Officer. Steve has been a dedicated member of the team since joining us in 2011, holding various positions over that time, including his most recent role as Chief Consumer Officer. Steve is stepping into this role following the announced retirement of Vinny Obell. Vinny will retire this fall, providing an opportunity to work with Steve during the transition. Vinny is ending a successful 47-year career in banking, including the last 10 years at Wayne Bank, where he's helped shape the commercial lending division into what it is today. We wish Vinny all the best in his retirement and look forward to seeing Steve and what he will achieve in this new role. Steve's promotion gives us an opportunity to promote Deb Kennedy to the Director of Retail Banking. She currently oversees our Pennsylvania franchise and will now oversee all branches both in New York and Pennsylvania. These organizational changes are part of our succession planning and a great testament to the strong and deep leadership we have at Norwood. Our fourth and final priority is to ensure that everything we do increases shareholder value. This is evident in our second quarter results when combined with our first quarter results, We have delivered very strong results during the first half of 2026. Year to date, net interest income has improved 39% and adjusted net income has improved 42%. Our average tangible equity increased by approximately 15%. We have now earned back the shareholder dilution that occurred with the purchase of presence bank shares with this increase in tangible book value. This is two years ahead of estimates and is a testament to the earnings power of the combined organization, our smooth integration, and our disciplined approach to M&A. Our employees are performing well, serving our customers and communities to enable them to achieve their financial goals. This has resulted in improved returns, which creates value for our shareholders. We are well positioned to continue the strong performance for the rest of 2026 and beyond. I will now turn the call over to John to walk us through our second quarter results.