Orrstown Financial Services, Inc.

I will now turn the call over to Tom Quinn, President and Chief Executive Officer of Orrstown Financial Services, Inc., and Orrstown Bank, who will begin the conference. Mr. Quinn, please go ahead.

Thank you, Kate, and good morning. I'd like to thank everyone for participating in Orrstown's second core 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 may click on the investor relations link and then on the events and presentations 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 investor presentation. The appropriate reconciliations to GAAP are included in the appendices. joining me on the call this morning are orstown bank senior executive vice president and chief operating officer adam metz as well as our executive vice president and chief financial officer neil kalani our chief risk officer bob karate and our chief credit officer dave tchaikovsky will also participate on the call our financial highlights for the quarter are summarized on slide three of the deck despite some lingering merger related expenses gap earnings were strong and core earnings continued to increase. Excluding certain merger related charges, return on average assets was 1.51% and return on average equity was 15.12% for the second quarter of 25 compared to 1.45 and 14.97 respectfully for the first quarter of 2025. We expect stronger net income going forward as loan growth accelerates. Net interest margin also increased. NIM was 407 in the second quarter of 2025, compared to 4% in the first quarter of 2025, with the possibility of further upside. We believe that we are pricing loans prudently and managing funding costs well, which is evidenced by the improving margin. Fee income remained a core strength of the organization during the second quarter. Fee income as a percentage of operating revenue was 21% during the quarter, an improvement from prior periods. Non-interest income increased $1.3 million quarter to quarter. The team has been doing an excellent job of generating fee income from various sources. Led by our wealth management fees remained the largest component of our fee income. Now at $3 billion in assets under management, there is significant opportunity to build this business. While expenses remain slightly more elevated than we would like, they are coming down. Over time, and our core operating expenses are in line with expectations, the team remains focused on establishing a foundation to support future growth. Excluding the impact of merger-related expenses, the efficiency ratio is 58.7% for the second quarter compared to 60.5% for the first quarter of 2025. We do not anticipate any meaningful merger related expenses going forward. We do expect expenses to continue to decline throughout the year, which will further boost our already strong earning stream. We believe that we consistently have demonstrated the ability to maintain strong profitability in any environment. I would now like to turn it over to Adam Metz for discussion on our balance sheet. Adam.

Thank you, Tom, and good morning, everybody. Loan growth was relatively modest this quarter, but we believe that the loan pipeline is strong. Total loan growth was 6% for the quarter on an annualized basis. Annualized commercial loan growth was 2%. During the quarter, we saw a good mix of CNI and CRE, and also a good mix between floating and fixed. We believe our overall loan pipeline is strong, Currently, it's the highest it's been since the merger of the two companies. This reflects the strength and resilience of our regional economy, the deep engagement of our team with our clients, and the impact of new talent we've attracted, including individuals with middle market experience. As I said before, talent matters, and we feel confident in the team we have in place and continue to build upon. It does remain a competitive lending environment, but we remain confident in our ability to grow loans the right way. And credit quality remains sound. We believe that the work we have done since the merger to protect credit quality has been very beneficial. Net charge-offs were again nominal in the second quarter. Classified loans and non-accrual loans decreased quarter to quarter. Non-accrual loans to total loans decreased to 0.57% for the second quarter compared to 0.59% for the first quarter. And we continue to build capital, which will create flexibility for us in the future. Capital ratios increased across the board quarter to quarter. We remain well capitalized by all measures. We continue to prioritize shareholder value, Late in the second quarter, the board of directors authorized a share repurchase program of up to 500,000 shares of common stock. The company repurchased 2,134 common shares during the quarter. We plan to utilize this authorization judiciously to support our currency as well as we believe we remain undervalued. The board voted to increase our quarterly dividend by one cent per share from 26 cents to 27 cents per share. This is the third dividend increase in the past year, and our dividend has increased 35% since the merger. Neal Kalani, our CFO, will now discuss our second quarter results in more detail. Neal? Thanks, Adam.