Executive Summary

Adjusted results were strong despite merger noise: adjusted diluted EPS was $0.82 vs S&P Global consensus $0.71 (beat), while GAAP diluted EPS was $0.22 due to $16.6M after-tax merger-related costs including a $16.4M day-one ACL build on acquired non‑PCD loans . Consensus values retrieved from S&P Global.*
Total revenue (NII + noninterest income) increased to $77.7M, up 27% QoQ and 33% YoY; NIM expanded 9 bps QoQ to 3.69% (3.50% ex. $3.4M purchase accounting accretion), driven by ESSA accretion, organic loan growth, and lower deposit costs .
Balance sheet scaled with ESSA close on Jul-23: loans ended at $6.47B (incl. $1.65B acquired), deposits at $6.90B (incl. $1.46B acquired); organic QoQ growth remained positive (loans +$90.8M, deposits +$70.2M) .
Credit remained contained: NPAs were 0.49% of assets (up QoQ from acquisition) and annualized NCOs fell to 0.06%; ACL/loans rose to 1.05% with the day‑one ESSA reserve .
Management flagged most one-time merger costs were incurred in Q3, with a smaller amount in Q4 around the early‑November core conversion; synergy capture and accretion are tracking at or above plan, a potential stock catalyst as merger charges roll off .

What Went Well and What Went Wrong

What Went Well
- Margin and revenue inflection: total revenue rose to $77.7M (+27% QoQ), with NIM up to 3.69% (3.50% ex. purchase accretion) as ESSA accretion and deposit repricing helped; NII rose to $67.1M (+29% QoQ) .
- Strong underlying profitability on an adjusted basis: adjusted EPS $0.82; adjusted PPNR climbed to $31.7M from $21.9M in Q2 and $19.7M in Q3’24 .
- Integration momentum and outlook: “realized cost savings and earnings accretion… meeting or exceeding our pre‑merger expectations… credit profile of portfolios acquired from ESSA remain sound” (CEO Michael Peduzzi) .
What Went Wrong
- GAAP dilution from merger items: GAAP EPS fell to $0.22 on $18.5M provision (incl. $16.4M day‑one non‑PCD reserve) and $4.2M merger/integration opex .
- Tangible book value pressure from goodwill/core deposit intangibles and share issuance: TBV/share declined to $22.32 (adj. $22.94) from $25.35 in Q2 .
- NPAs ticked up due to acquired credits: NPAs were $40.4M (0.49% assets) vs $30.4M (0.48%) in Q2; rise largely acquisition‑related .

Financial Results

Summary P&L (oldest → newest)

Metric	Q1 2025	Q2 2025	Q3 2025
Total Revenue (NII + Noninterest) ($M)	$56.9	$61.2	$77.7
Net Interest Income ($M)	$48.4	$52.2	$67.1
Noninterest Income ($M)	$8.5	$9.0	$10.6
GAAP Diluted EPS ($)	$0.50	$0.61	$0.22
Adjusted Diluted EPS ($)	$0.57	$0.63	$0.82

Margins and Returns

Metric	Q1 2025	Q2 2025	Q3 2025
Net Interest Margin (FTE) %	3.37%	3.59%	3.69% (3.50% ex accretion)
Efficiency Ratio (FTE) %	71.28%	64.08%	62.97%
ROAA % (GAAP)	0.75%	0.90%	0.36%
ROAA % (Adjusted)	0.85%	0.92%	1.20%
ROATCE % (GAAP)	8.15%	9.71%	3.87%
ROATCE % (Adjusted)	9.32%	9.98%	14.62%

Balance Sheet and Credit KPIs

Metric	Q1 2025	Q2 2025	Q3 2025
Loans ex. syndicated (period-end, $B)	$4.54B loans; syndicated $0.069B (ex → ~$4.47B)	$4.65B loans; syndicated $0.079B (ex → ~$4.57B)	$6.468B total; syndicated $0.072B (ex → ~$6.40B)
Total Deposits (period-end, $B)	$5.46B	$5.47B	$6.90B
Organic QoQ Loan Growth ($M)	+$11.7M	+$113.7M	+$90.8M
Organic QoQ Deposit Growth ($M)	+$88.7M	+$84.7M (exited $77.7M high-cost muni)	+$70.2M (incl. $92.8M held for sale)
Adjusted Uninsured Deposits (% of total)	17.46%	17.63%	20.55%
Total Est. Uninsured Deposits (%)	27.94%	28.62%	30.02%
Liquidity to Adjusted Uninsured (x)	~5.3x	~5.1x	~4.3x
Nonperforming Assets ($M)	$56.1	$30.4	$40.4
NPA / Total Assets (%)	0.89%	0.48%	0.49%
Net Loan Charge-offs (annualized, %)	0.13%	0.28%	0.06%
ACL / Total Loans (%)	1.03%	1.02%	1.05%
CET1 Ratio (%)	11.85%	11.78%	10.48%
TCE / Tangible Assets (%)	8.36%	8.53%	8.10%
TBV / Share ($)	$24.91	$25.35	$22.32

Estimates vs Actuals (Q3 2025)

Metric	Consensus	Actual	Surprise
Adjusted Diluted EPS ($)	0.71*	0.82	+$0.11 (+15.5%)
Total Revenue ($M)	68.5*	77.7	+$9.2 (+13.4%)

Values retrieved from S&P Global.*

Segment/components (Q3 2025 detail)

Net interest income: $67.1M; purchase accounting loan accretion contributed $3.4M (NIM 3.69% reported; 3.50% ex. accretion) .
Noninterest income: $10.6M, up QoQ on wealth/asset management fees, service charges and AFS gains; YoY down on lower SBIC pass-throughs .
Pre-provision net revenue (PPNR): $27.5M GAAP; $31.7M adjusted .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
One-time merger/integration costs	Q4 2025	Not quantified	“Non-recurring customary merger-related expenses were substantially incurred in Q3, with a smaller amount yet to be incurred in Q4 given the ESSA core system conversion scheduled in early Nov.”	Lower in Q4 vs Q3
ESSA synergy capture & accretion	2025–2026	Accretion expected at deal announce	“Realized cost savings and earnings accretion… meeting or exceeding our pre-merger expectations”	Tracking ≥ plan
Common dividend	Dec 12, 2025 pay date	Prior $0.18/qtr	Declared $0.18/qtr payable Dec 12 to holders of record Nov 28	Maintained

No formal quantitative 2025/2026 revenue/margin/expense guidance was provided in the filing; management focused on integration timing and synergy delivery .

Earnings Call Themes & Trends

Note: No Q3’25 earnings call transcript was available in the document catalog as of Nov-20-2025.

Topic	Previous Mentions (Q2 and Q1)	Current Period (Q3 2025)	Trend
ESSA acquisition & integration	Q1: Merger announced, approvals pending ; Q2: all regulatory approvals received; close set for Jul-23	Closed Jul-23; integration underway; early cost saves/accretion ≥ plan; smaller Q4 charges; credit profile “sound”	Positive integration momentum
Net interest margin & deposit pricing	Q1: NIM 3.37%; targeted deposit rate reductions; cost of funds falling ; Q2: NIM 3.59% with improving earning-asset mix	NIM 3.69% (3.50% ex accretion); yield on EAs +7 bps QoQ; cost of interest-bearing liabilities −5 bps QoQ	Improving
Credit quality & multifamily/office exposure	Q1: NPAs 0.89%; specific multifamily relationship identified ; Q2: NPAs fell to 0.48% after resolutions	NPAs 0.49% with ~+$9.5M from ESSA; NCOs improved to 0.06% annualized; ACL/loans 1.05%	Stable underlying; mix effect from ESSA
Liquidity & uninsured deposits	Q1: Adjusted uninsured 17.46%; liquidity ~5.3x ; Q2: 17.63%; ~5.1x	Adjusted uninsured 20.55% (driven by ESSA); liquidity ~4.3x adjusted uninsured	Adequate, modestly lower coverage post-close
AOCI / securities unrealized losses	Q1: $61.7M; improving QoQ ; Q2: $55.6M	$49.8M (5.90% of equity) vs $55.6M in Q2; all maturities at par; well-capitalized even if fully recognized	Improving
Capital & tangible book	Q1: TCE/TA 8.36% ; Q2: 8.53%	TCE/TA 8.10% (adj. 8.32%); TBV/share down to $22.32 (adj. $22.94) on goodwill/CDI and shares issued	Near-term dilution; rebuild with earnings

Management Commentary

Strategic scope and scale: “We are now an over $8 billion asset institution with 75 full-service branches… with operational and technological scale to meet… customer needs… across our four-state franchise.”
Integration progress and accretion: “Non-recurring… merger-related expenses were substantially incurred in the third quarter… we are seeing realized cost savings and earnings accretion that is meeting or exceeding our pre-merger expectations.”
Credit tone: “Importantly, the credit profile of the portfolios acquired from ESSA remain sound with no unexpected changes… anticipated through… due diligence.”

Q&A Highlights

No Q3 2025 earnings call transcript was available in the catalog to extract Q&A themes or clarifications (as of Nov-20-2025) [ListDocuments: no transcript found].

Estimates Context

Adjusted EPS beat: $0.82 vs S&P Global consensus $0.71 (+$0.11, +15.5%). GAAP EPS was $0.22 due to merger-related items, but sell-side appears to have modeled normalized EPS, consistent with S&P’s “actual” comparison convention . Consensus values retrieved from S&P Global.*
Revenue beat: Total revenue (company definition) $77.7M vs S&P Global consensus $68.5M (+$9.2M, +13.4%). Note S&P’s bank “revenue” convention is intended to reflect total operating revenue (NII + fees); we compare to company’s total revenue disclosure . Consensus values retrieved from S&P Global.*

Where estimates may adjust:

Lower Q4 one-time charges than Q3 and early synergy realization could lift 2025 exit run-rate profitability; analysts may raise 2026 EPS accretion assumptions and trim Q4 noninterest expense .
NIM ex accretion at 3.50% and deposit cost reductions suggest modest upward bias to forward NIM; partially offset by lower yield on variable loans in a lower-rate backdrop .

Key Takeaways for Investors

Core earnings power strengthening: adjusted PPNR up materially QoQ; adjusted ROATCE 14.6% highlights potential as merger costs abate .
Clear beat on normalized EPS and revenue: $0.82 vs $0.71 and $77.7M vs $68.5M; sets positive revision bias near term. Consensus values retrieved from S&P Global.*
Integration on track with synergy upside: management says cost saves and accretion meeting/exceeding plan; most one-time charges are behind, with a smaller Q4 amount around the early‑Nov core conversion .
Tangible book dilution is the trade-off: TBV/share fell to $22.32 on goodwill/CDI and share issuance; rebuilding depends on synergy capture and retained earnings .
Credit stable with acquisition mix effect: NPAs increased primarily from acquired ESSA balances, but NCOs improved and ACL/loans rose to 1.05% including day‑one reserve .
Liquidity and capital remain solid: CET1 10.48% and total available liquidity ~4.3x adjusted uninsured deposits post-close; AOCI improved to $49.8M (5.90% of equity) .
Near-term setup: Q4 should show fewer one-time costs and early synergy flow-through; watch NIM ex accretion, expense trajectory post-conversion, and deposit remix (including the planned sale of $92.8M of deposits held for sale) for next legs of operating leverage .

Additional Context and Prior Quarters Read for Trend Analysis

Q2 2025: NIM 3.59%, NII $52.2M, GAAP EPS $0.61; NPAs fell sharply; regulatory approvals for ESSA received; close set for Jul-23 .
Q1 2025: NIM 3.37%, GAAP EPS $0.50 (adj. $0.57); deposit costs falling; uninsured deposit coverage ~5.3x; merger process underway .

Other Relevant Press Releases in/around Q3

ESSA merger completion (Jul-24-2025) .
Quarterly common dividend $0.18 declared Nov-12-2025 (payable Dec-12-2025) .

Notes: All quantitative company results reflect management’s definitions in the press release/8‑K. Consensus values are sourced from S&P Global and may be based on adjusted (normalized) definitions for comparability.*

Citations:

Q3 2025 8‑K earnings release and exhibits:
Q2 2025 8‑K earnings release:
Q1 2025 8‑K earnings release:
Other press releases: merger completion ; dividend