Orrstown Financial Services, Inc.

Good morning. My name is Sarah and I will be your conference operator today. At this time, I would like to welcome everyone to the Orstown Financial Services Inc. Fourth 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 star one again. I will now turn the call over to Tom Quinn, President and Chief Executive Officer of Orstown Financial Services, Inc. and Orstown Bank. So we'll begin the conference. Mr. Quinn, please go ahead.

Thank you, operator, and good morning. I'd like to thank everyone for participating in Orrstown fourth 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.orrstown.com. Once there, you can click on the investor relations link and then 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 the information are included in the earnings release, the investor presentation, and our SEC filings. The earnings release and investor presentations also include non-GAAP financial measures. The appropriate reconciliations to GAAP are included in those documents. Joining me on the call this morning are Orristown's 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 Revenue Officer, Zach Corey, Chief Risk Officer Bob Crotty and our Chief Credit Officer Dave Joukowsky will also participate in the call. Our financial highlights. Orrstown achieved the highest reported annual net income in the company's history of 106 years. Net income was $80.9 million, or $4.18 for diluted share. Our return on average equity was $14.76. Return on average assets was 1.49%. Net interest margin came in at 404 and fee income of 52.3 million contributed to 21% of the total operating income. We demonstrated our ability to maintain net interest in margin near top of peers, enhanced fee income and created efficiencies, all while maintaining our focus on leading with risk. Regularly investing in the future remains a key strategy for the bank. We brought in several talented team members in 2026 and will continue to do so. with that has come a strong loan pipeline and enhanced growth opportunities going forward overall it was a highly successful year for orstown particularly with the numerous challenges presented to us along the way we are proud that we have consistently demonstrated the ability to maintain strong profitability in any environment and expect that to continue going forward i will now turn it over the call over to adam metz who will speak about our quarterly results adam

Thank you, Tom, and good morning, everyone. Our quarterly financial highlights are summarized on slide three of our deck. As was the case with our annual results, our fourth quarter earnings were impressive. Net income was $21.5 million, or $1.11 per diluted share. We maintained a strong net interest margin, which coupled with non-interest income growth drove our continued earnings and capital generation in the fourth quarter. Non-interest income as a percentage of operating revenue was 22% in the fourth quarter. That's the third consecutive quarter where this ratio exceeded 20%. As Tom said, enhancing non-interest income and investing in the future remain key strategic priorities for the bank. We recently announced the hiring of Matt Alpert as our chief wealth officer. Matt's proven track record in team leadership and his client-first approach align perfectly with our mission to deliver personalized, high-quality financial advice and trust services. Over time, we will look to Matt to bring additional talent to the organization. Our proven philosophy remains that investing in the right people today will lead to continued growth in the future. We are also looking for newer sources of fee income, such as our recently increased presence in the merchant services space. Loan growth was steady during the fourth quarter, coming in at 4%. Loan growth was tempered by some projected closings being pushed into the first quarter of 2026. Growth has been balanced across our footprint and our product set, a nice mix of CNI and CRE. and we have also seen the benefit of our investment in the middle market team. We remain confident in our pipelines, which remain strong, and the ability of our experienced relationship bankers to continue to responsibly grow the loan portfolio. Credit quality remains strong, highlighted by minimal provision expense, a reduction in classified loans, and a healthy reserve coverage ratio. The bank recorded provision expense of 0.1 million and net charge-offs of 0.5 million during the quarter. Classified loans decreased by 5.7 million from the prior quarter. The allowance for credit losses on loans as a percentage of total loans ended the quarter at 1.19% compared to 1.21% at the end of the prior quarter. We believe the allowance coverage properly aligns with the makeup of the loan portfolio. While delinquencies have increased, we do not believe it is indicative of a broader trend. 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. Our shareholders remain our top priority. We remain focused on building shareholder value through strong earnings and an attractive dividend. As a result of our strong earnings performance, the board voted to increase our quarterly dividend by 3 cents per share from 27 to 30 cents per share. This is the fourth dividend increase in the past 18 months and our dividend has increased 50% since the merger date. Neil Kalani, our CFO, will now discuss our four-quarter results in more detail. Neil?