Csb Bancorp Inc Oh

Chief Executive Officer, and Marty Egan, our Interim Chief Financial Officer. This morning's call is being webcast on our website at www.thebankcorp.com. There will be a replay of the call available via webcast on our website beginning at approximately 12 p.m. Eastern Time today. The dial-in for the replay is 1-888-660-6264 with a passcode of 45285. Before I turn the call over to Damian, I would like to remind everyone that There are comments and responses to questions reflects management's view as of today, July 25th, 2025. Yesterday, we issued our second quarter earnings release and updated investor presentation. Both are available on our investor relations website. We will make certain forward-looking statements on this call. These statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that could cause actual results to differ materially from the expectations and assumptions we mentioned today. These factors or uncertainties are discussed in our reports and filings with the Securities and Exchange Commission. In addition, we will be referring to certain non-GAAP financial measures during this call. Additional details and reconciliations of GAAP to adjusted non-GAAP financial measures are in the earnings release and the investor presentation. Please note that the Bancorp undertakes no obligation to publicly release the results of any revisions to forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Now, I'd like to turn the call over to the Bancorp's Chief Executive Officer, Damian Kozlowski. Damian?

Thank you, Andres. Good morning, everyone. The Bancorp earned $1.27 per diluted share in the second quarter on year-over-year revenue growth of 11%, excluding FinTech loan credit and enhancement income, with expense growth year-over-year of 11%. EPS growth was 21% year-over-year. Our FinTech ecosystem continued to be the driver of revenue growth. GDB climbed 18% year-over-year, with total fee and related interest income growth from all fintech activities grew 30%. On July 14th, we announced a five-year expansion of our relationship with Block, in which we added debit and prepaid card issuance and related services for Cash App customers. Subject to program implementation timelines, the additional services are expected to begin as early as the first quarter of 26th, and we expect this program to enhance growth of GDV and fees into the future. We also announced a substantial increase to our share repurchase program over the next 18 months to $500 million beginning in the third quarter of 25. This buyback will be funded by quarter earnings growth and replacement of maturing senior unsecured debt at the Bancorp Holding Company of $100 million aggregate outstanding with approximately $200 million of new senior unsecured debt at the Bancor Holding Company. We anticipate that $300 million of shares will be purchased for the remainder of 2025. This is an increase of $225 million or 300% over the current buyback of $75 million for the last two quarters of 2025. In 2026, $200 million worth of shares are planned to be purchased with $50 million of purchases each quarter. Lastly, we are continuing to maintain our guidance of 525 earnings per share for 2025. We also are announcing Project 7, a project in which we are targeting at least a $7 earnings per share run rate by the end of 26. We plan to accomplish this goal through fintech revenue growth, buybacks of shares, and efficiency and productivity gains by reallocating and or reducing resources where appropriate. I now turn the call over to Marty Egan, our interim CFO.

Thank you, Damian. Excluding consumer FinTech loan credit enhancement income, non-interest income for the second quarter of 2025 was $40.5 million, which was 32% higher than the second quarter of 2024. Total FinTech fees accounted for most of that increase. Prepaid, debit card, ACH, and other payment fees increased 14% to $31.7 million over that period. And consumer credit FinTech fees increased $3.8 million to $4 million. In the second quarter, credit enhancement income was $43.2 million, and the provision for consumer FinTech loans was also $43.2 million. Overall, loan balances grew 17% year-over-year, while loan balances excluding consumer FinTech loans grew 6%. Consumer FinTech loans increased 871% year-over-year to $680.5 million and 19% over the linked quarter. Average FinTech solution deposits for the quarter increased 20% to $7.76 billion from $6.44 billion in the second quarter of 2024. Net interest income was 4% higher than second quarter of 2024. The second quarter net interest margin was 4.44% compared to 4.07 for the first quarter of 2025. The second quarter of 2025 included a $3.1 million of interest on CRE2, which was repaid in that quarter as a result of sales underlying collateral. Additionally, fees on the majority of our growing consumer fintech loan balances are recorded as non-interest income, which impacts both net interest income and net interest margin. Non-interest expense for the second quarter of 2025 was $57.2 million, which was 11% higher than the second quarter of 2024. The increase included a 10% increase in salaries and benefits. Additional details regarding our loan portfolios are included in the related tables in our press release, as are earnings contributions of our payments business. And now it's time to call back to Damien.