- **Q2 Financial Performance**: $22M net income, 10 bps NIM expansion to 332 bps, and 10% YoY revenue growth.
- **Merger Momentum**: Systems go-live February 9, 2025; $90M credit limit post-merger.
- **Credit Challenges**: $7M provision driven by Boston office portfolio stress, but CRE exposure to capital at 363% (target 300%).
- **Rate Sensitivity**: 25 bps cut could flatten Q3 NIM, but $927M wholesale funding repricing provides tailwind.
- **Shareholder Returns**: Dividend maintained; potential early adoption of FASB ASU could reduce tangible book dilution by $0.84/share.

**【CEO Summary Section】**
- **Q2 Earnings**: $22 million ($0.25 per share), driven by intentional balance sheet management ahead of the Berkshire merger.
- **Loan Portfolio**: Decreased by $61 million (down $95M in CRE, $46M in specialty vehicles), offset by growth in commercial ($53M) and consumer ($27M) loans.
- **Deposit Growth**: +$59 million, with net interest margin improving 10 bps to 332 bps.
- **Boston Office Portfolio Stress**: Added $1M reserves for 2 commercial laundry and grocery credits; overall office portfolio outside Boston performing well.
- **Merger Progress**: Shareholder approval secured; systems conversion targeted for February 9, 2025. Anticipate Fed approval by September.

**【CFO Financial Commentary】**
- **Revenue**: $94.7 million (QoQ +3%, YoY +10%), with net interest income up $2.9 million to $88.7 million.
- **Expense Management**: Noninterest expenses (excluding merger charges) down $1.3 million to $57.7 million.
- **Credit Provisions**: $7 million (QoQ +$1M), reflecting $5.1 million net charge-offs.
- **Dividend**: Maintained at $0.135 per quarter.
- **Forward Guidance**: 
  - NIM to increase 4-8 bps in Q3 (no rate cut assumption).
  - Loan growth: low single digits for 2025.
  - Deposit growth: 4-5%.
  - Noninterest income: $5.5-6.5 million/Q.
  - Tax rate: 24.25% (excl. nondeductible merger costs).

**【Q&A Key Highlights】**
- **Merger Credit Limits**: Post-merger, expect to handle loans up to $90 million (double current capacity).
- **FASB ASU Impact**: Day-2 CECL charge of $94.5 million ($71M after tax) to be reversed if FASB issues final rule by Q4. Could accelerate earn-back period from 2.9 years.
- **Rate Cut Sensitivity**: 25 bps cut could flatten NIM initially, but $556M CDs repricing at 410 bps and $371M borrowings at 477 bps provide long-term benefit.
- **Mass Housing Takeout**: 90-day past due loan (100% leased) expected to resolve in Q3.
- **Expense Run Rate**: Current $57.7M level sustainable, may decline slightly in Q3.


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