Financial Data and Key Metrics Changes - Total assets reached $16.4 billion, total deposits were $13.7 billion, and total loans amounted to $12.9 billion, reflecting significant growth [7][11] - Revenue for the third quarter was a record $168 million, representing over 20% year-over-year growth [7][11] - Net interest margin improved by nine basis points quarter-over-quarter to 3.65% [7][11] - GAAP EPS increased by $0.08 or 15% for the nine months ended September 30, 2025, while adjusted EPS rose by $0.16 or 21% for the same period [8][11] Business Line Data and Key Metrics Changes - Commercial and industrial loan growth exceeded 25% year-over-year, with strong progress in specialty verticals and SBA lending [7][11] - Non-interest income increased by $1.3 million or 4% quarter-over-quarter, driven primarily by service charges [11][19] - Adjusted pre-tax, pre-provision net revenue was nearly $66 million, an 11.5% increase quarter-over-quarter [12] Market Data and Key Metrics Changes - The company has over 150 financial centers across Pennsylvania, New York, Ohio, and Indiana, with plans to open additional centers in high-growth markets [4][5] - The company was named a top 50 SBA lender nationally by volume, indicating strong market positioning [7] Company Strategy and Development Direction - The merger with Penns Woods Bancorp was completed, enhancing the company's scale and operational efficiency [3][13] - The company is focused on sustainable, responsible, and profitable growth, with plans to open new financial centers in key locations [4][5][10] - The management team is actively recruiting for leadership roles to support expansion and enhance service offerings [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining net interest margin levels in the mid-360s and anticipates continued growth in loan portfolios [24] - The company is managing credit risk tightly, with no direct exposure to companies facing significant credit issues [8][22] - Future guidance for non-interest income and expenses was provided, indicating stable expectations for the upcoming quarters [24][25] Other Important Information - The company declared a quarterly dividend of $0.20 per share, representing an annualized yield of approximately 6.5% [9] - The integration of the Penns Woods acquisition is progressing well, with expected cost savings to be fully realized by the second quarter of 2026 [25][86] Q&A Session Summary Question: Loan growth expectations and impact of new branches - Management indicated that loan growth is expected to stabilize, with opportunities for growth in the fourth quarter and beyond, particularly from new branches [30][31][32] Question: Expense management and future guidance - Management emphasized a focus on positive operating leverage while continuing to invest for growth, with expectations for expenses to remain stable [34][35][36] Question: Capital management post-acquisition - Management expressed comfort with current capital levels, indicating a preference for maintaining a strong capital base while exploring growth opportunities [43][44] Question: Consumer portfolio trends and deposit activity - Management noted elevated delinquencies due to administrative issues from the acquisition but remains confident in the overall health of the consumer portfolio [50][51] Question: Scaling the bank and future growth strategies - Management is focused on maximizing integration and efficiency from the Penns Woods merger while considering both organic growth and M&A opportunities for future scaling [52][54] Question: Funding loan growth and deposit strategies - Management indicated strong funding capacity for loan growth, with expectations for deposit growth from new branches and existing customer relationships [61][62] Question: Overall loan yields and competitive landscape - Management reported that overall loan yields are in the low sevens, with expectations for some pressure on yields due to competitive market conditions [78][79]

Financial Data and Key Metrics Changes - Total assets reached $16.4 billion, total deposits were $13.7 billion, and total loans amounted to $12.9 billion [6][10] - Revenue for the third quarter was a record $168 million, reflecting over 20% year-over-year growth [6][10] - Net interest margin improved by nine basis points quarter-over-quarter to 3.65% [6][10] - GAAP EPS for the nine months ended September 30, 2025, increased by $0.08 or 15%, while adjusted EPS rose by $0.16 or 21% [7][10] Business Line Data and Key Metrics Changes - Commercial and industrial loan growth exceeded 25% year-over-year [6] - Non-interest income increased by $1.3 million or 4% quarter-over-quarter, driven by service charges [10][18] - Adjusted pre-tax, pre-provision net revenue rose to almost $66 million, an 11.5% increase quarter-over-quarter [10] Market Data and Key Metrics Changes - The company has over 150 financial centers across Pennsylvania, New York, Ohio, and Indiana, with plans to open three new centers in the Columbus market [4][5] - The company was named a top 50 SBA lender nationally by volume [6] Company Strategy and Development Direction - The merger with Penns Woods Bancorp was completed, enhancing balance sheet scale and expected to achieve full cost savings by the second quarter of 2026 [3][24] - The company is focusing on organic growth through de novo branches and potential M&A opportunities in high-growth markets [45][46] - The strategy includes maintaining tight cost controls and risk management discipline while investing in talent for future growth [9][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining net interest margin levels in the mid-360s and reaffirmed guidance for the fourth quarter [23] - The company is managing criticized and classified assets, which may impact loan growth but is expected to improve over time [30][39] - Management noted no direct exposure to companies with recent credit issues and emphasized strong risk management practices [7][21] Other Important Information - The company declared a quarterly dividend of $0.20 per share, representing an annualized yield of approximately 6.5% [8] - The liquidity position is strong, with sources covering approximately 250% of uninsured deposits [12] Q&A Session Summary Question: Loan growth expectations and impact of new branches - Management indicated that while the acquisition had a significant impact on loan growth, they expect to hold the balance sheet stable and look for growth opportunities in the fourth quarter [26][27] Question: Expense management and future guidance - Management aims to maintain positive operating leverage while investing for growth, with no significant increase in expenses expected from current levels [31][32] Question: Capital management post-acquisition - The company is comfortable with its capital levels and will consider opportunities for buybacks or acquisitions while maintaining a strong capital base [37] Question: Trends in consumer portfolio and deposit activity - Management noted elevated delinquencies due to administrative issues from the acquisition but remains comfortable with the overall consumer exposure [43][44] Question: Scaling the bank and future growth strategies - The focus is on maximizing integration and efficiency from the Penns Woods merger while pursuing organic growth and potential M&A opportunities [45][46]

Financial Data and Key Metrics Changes - For Q3 2025, the GAAP net income was $34.3 million, with diluted EPS at $0.69, resulting in a 0.55% return on assets and a 3.82% return on average common equity [18] - Adjusted operating net income for the quarter was $77.4 million or $1.55 diluted EPS, representing a 1.23% return on assets and an 8.63% return on average common equity [18] - The net interest margin improved to 3.62%, a 25 basis point increase from the prior quarter [20] Business Line Data and Key Metrics Changes - C and I loans grew organically at a 13% annualized rate, while commercial real estate loan balances declined at a 6.7% annualized rate [13][14] - The wealth management business saw assets under administration (AUA) grow to $9.2 billion, including $1.4 billion acquired from Enterprise [15][27] Market Data and Key Metrics Changes - Demand deposit growth was 5% annualized in Q3, with demand deposits representing 28% of overall deposits [14] - The cost of deposits was reported at 1.58% [15] Company Strategy and Development Direction - The company is focused on integrating the Enterprise acquisition, with a successful systems conversion completed [4][7] - There is an emphasis on cross-selling deeper into the Enterprise customer base and retaining client-facing personnel [8][9] - The company plans to prepare for a core conversion scheduled for May 2026, which is expected to enhance technology infrastructure and support future growth [15][28] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are experiencing uncertainty due to factors like government shutdowns, tariffs, and inflation, but the client base remains resilient [11][12] - The company expects to build on solid Q3 results for improved growth and profitability in the future [16] Other Important Information - The company anticipates achieving 30% cost savings on the acquired Enterprise expense base by 2026 [27] - The tangible book value per share decreased by $2.17 or 4.5% for the quarter, but is up modestly over the year-ago metric [19] Q&A Session Summary Question: Can you quantify the C and I growth and discuss the loan pipeline? - C and I growth has been strong, particularly in lower middle markets, with a healthy loan pipeline that remains stable [36][38] Question: How is loan pricing currently? - The company aims for a spread above 200 basis points on C and I loans, with pricing around 6% [39] Question: What is the outlook on office credit and classified loans? - Management feels better about office credit than six months ago, with several larger problems resolved [43][45] Question: What are the expectations for loan growth next year? - The company anticipates low to mid single-digit loan growth, contingent on continued positive trends [47] Question: How does the margin guidance relate to potential Fed rate cuts? - Margin guidance remains stable regardless of Fed actions, with expectations for 4 to 6 basis points of expansion [54] Question: What are the plans for the securities portfolio? - There are no immediate plans to restructure the securities portfolio, which is viewed as stable [55] Question: Can you provide details on new non-accruals? - The increase in non-accruals is primarily due to three loans, with no significant loss exposure expected [57][58] Question: What is the strategy regarding capital and buybacks? - The company is comfortable with a CET1 ratio around 12% and is open to buybacks if growth remains in the low to mid single-digit range [99][102]