Orrstown Financial Services, Inc.

Good morning. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to the Orrstown Financial Services, Inc. Third Quarter 2025 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would 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, press the pound key. 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, Tiffany. And good morning. I'd like to thank everyone for participating in Orrstown's third 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 the 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 today on the call are Orrstown Bank's Senior Executive Vice President and Chief Operating Officer, Adam Metz, as well as Executive Vice President and Chief Financial Officer, Neil Kalani. Our Chief Revenue Officer, Zach Curry, Chief Risk Officer, Bob Karate, and our Chief Credit Officer, Dave Tchaikowsky, will also participate on the call. Our financial highlights for the quarter are summarized on slide three of the deck. we delivered another quarter of excellent results. Loan growth was strong. In the third quarter, we achieved 4.9% annualized loan growth after taking some steps early in the year to align the acquired portfolio with our risk profile. We have seen good growth in the last two quarters. Net interest margin was 411 for the third quarter of 25 compared to 407 for the second quarter of 25. We believe that we are pricing loans prudently and managing funding costs well, which is evidenced by the stable margin. Fee income remained a core strength of the organization during the third quarter. Fee income as a percentage of operating revenue was 20.8%. The second consecutive quarter that this ratio was nearly 21%. Expenses continued to decline. Non-interest expense declined by $1.3 million compared to the prior quarter. Our efficiency ratio decreased from 60.3% to 56.4% quarter to quarter. All this translated into our strongest quarter of earnings on record with diluted EPS of $1.13. Our return on assets of 1.60% and return on equity nearly 16%. We believe that our successful execution of last year's merger with Codorus Valley is evident in our financial performance. At this time, I would like to turn the call over to Adam Metz for a discussion on our balance sheet. Adam.

Thank you, Tom. Good morning, everyone. We have previously discussed the steps that we've taken to proactively protect the bank's risk profile and position the bank to be successful in all economic scenarios. These steps seem particularly relevant given the credit concerns disclosed by other institutions last week. As a reminder, these steps included managing our CRE portfolio to reduce concentration, stress testing the CNI portfolio for the potential impact of tariffs, reviewing our TM platform for clients sending foreign wires and proactively discussing strategies with them, and re-evaluated lending relationships above $2 million, adjusted risk ratings as deemed appropriate, and presented some of them with exit plans. Our relationship banking model requires our sales teams to keep in touch close with our clients. We have regular conversations with our clients on a variety of topics, recently including tariffs, the government shutdown, the Pennsylvania budget impasse, and general economic conditions, helping them navigate the evolving landscape and plan accordingly. After the first quarter, we indicated that these steps had resulted in higher than expected reductions in loan balances, but expressed optimism that steps had taken to protect credit quality and laid a solid foundation for future growth. We believe that this solid foundation was reflected in our third quarter results. As Tom said, in the third quarter, we achieved 4.9% annualized loan growth. We continue to lean into our relationship banking model, where high engagement and local decision making differentiate us in the market and allow us to meet client needs with speed and care. Importantly, credit quality remains sound. Net charge-offs were again nominal in the quarter. Classified loans decreased by 1.7 million to 64.1 million at quarter end. Although non-accrual loans increased by 3.8 million to 26.2 million at quarter end, most of this increase was primarily related to one relationship within the commercial construction and development portfolio. We are mindful of some economic uncertainty and its potential impact on the overall business environment. We remain focused on credit quality and plan to continue to grow prudently. And we, along with an independent third party, regularly evaluate our portfolio for new risk considerations. We view our capital position as an organizational strength, which provides us with significant strategic flexibility for the future. We are well capitalized by all measures. Neil Kalani, our CFO, will now discuss our third quarter results in more detail. Neil? Thank you, Adam. Good morning, everyone.