Orrstown Financial Services, Inc.

Good morning, my name is Julianne and I will be your conference operator today. At this time I would like to welcome everyone to the Orrstown Financial Services Inc first quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers remarks will be a question and answer session. If you'd like to ask a question during the Q&A session, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star one again. I will now turn the call over to Tom Quinn, President and Chief Executive Officer of Orrstown Financial Services Inc. and Orrstown Bank. We'll begin the conference. Mr. Quinn, you may go ahead.

Thank you, Julianne, and good morning. I would like to thank everyone for participating in Orrstown first quarter 2025 earnings conference call, both by telephone and through the webcast. If you have not read the earnings release we issued yesterday afternoon, you may access it along with the financial tables and schedules by going to our website, www.orstown.com. Once there, you can click on the investor relations link and then on the events and presentation link. Also, before we start, I would like to mention that today's presentation may contain forward-looking information. Cautionary statements about this information are included in the earnings release, the investor presentation, and our SEC filings. The presentation also includes non-GAAP financial measures as identified in the earnings release and the investor presentation. The appropriate reconciliations to GAAP are included in the appendices. Joining me on the call this morning, Orrstown Senior Executive Vice President and Chief Operating Officer Adam Metz, as well as Executive Vice President and Chief Financial Officer, Neil Kalani. Our Chief Risk Officer, Bob Karate, and our Chief Credit Officer, Dave Czajkowski, will also participate on the call today. Before we discuss the financial results of the quarter, I wanted to bring everyone up to speed on some of the important events that took place at Orrstown during the first quarter. First, we put the finishing touches on our core conversion. With the integration behind us, we are excited about returning our focus to growing the company, enhancing the shareholder value, and building the premier community bank franchise in our Pennsylvania and Maryland markets. Second, we continue to invest in the future of the larger organization by making several additions and changes to our leadership team. In January, we added Chris Orr and Ben Colvard to our executive team as chief information officer and chief operations officer, respectfully. Together, Chris and Ben have over 40 years of banking experience. Their combined experience will play a vital role in scaling our technological and operational capabilities and shaping our future success. In February, we added Barb Ropes to our board of directors. Barb's 40 years of banking experience expertise in wealth management and human capital management and extensive knowledge of our markets makes her a valuable resource for both our board and management team. Also in February, we announced that Adam Metz has been promoted to senior executive vice president and chief operating officer of the company with the intent for him to succeed me as president and chief executive officer of the company and bank upon my retirement in May of 2026. I would like to now turn the call over to Adam Metz for a discussion on market trends. Adam?

Thank you, Tom, and good morning, everyone. Before we discuss our quarterly results, it is important to discuss the changing economic environment and the steps we've taken to position the bank to be successful in any scenario. Shortly before our year-end earnings announcement, the presidential administration came to power and immediately began to take aggressive action to change the economy through the creation of DOGE, the threat, implementation, and the impartial delay of tariffs and other measures. These actions introduced market volatility and uncertainty into the national economy. Thankfully, we had previously begun to take steps designed to protect credit quality and position the bank for success in any economic scenario. These steps included proactively managing our CRE portfolio to reduce concentration. And we've been very successful in that initiative that we started almost a year ago. Stress tested the C&I portfolio for the potential impact of tariffs. And Bob and Dave can speak more about that later. Reviewed our TM platform for clients sending foreign wires and proactively discussing strategies with them. And we re-evaluated lending relationships above $2 million, one by one, and adjusted risk ratings appropriately, targeting some of them with exit plans. While these steps resulted in higher than expected loan payoffs during the first quarter, we are confident that we have positioned us well for future loan growth. With that said, we are not immune to the changing economic environment, and it is possible that borrowers may take a wait and see approach on expansion plans and capital needs. Despite the economic uncertainty, we are seeing positive momentum in our loan pipelines, up over 40% since year end. Over the past year, our teams have been laser focused on executing a successful merger and integration. With that milestone now behind us, we have devoted our full resources and times towards our clients, working closely with them as trusted hands-on financial advisors. The strength of our pipelines reflect that renewed energy. As for tariffs, we are active daily conversations with our clients, helping them navigate the evolving landscape and plan accordingly. While tariffs have introduced an added layer of uncertainty, our loan portfolio has been thoroughly stress tested and remains sound. Importantly, the underlying economic conditions across the communities we serve continue to demonstrate resilience. Overall, we believe that the work we have done since the merger to protect credit quality, enhance liquidity, and build capital has presented us with significant strategic flexibility going forward. Tom and Neil will be talking more about these opportunities in a moment. I would now like to turn the call back over to Tom Quinn for an overview of our quarterly results.