Financial Data and Key Metrics Changes - Core pretax pre-provision income increased to $49 million in Q2 2025 from $28 million a year ago, resulting in a core ROA of 85 basis points [7] - Core EPS was $0.64 per share, representing a 12% increase on a linked quarter basis and a 49% increase year over year [14] - The reported NIM increased to 2.98%, with a potential adjusted NIM of 2.95% when excluding prepayment fees [14][16] Business Line Data and Key Metrics Changes - Business loans grew by over $110 million in Q2 and by over $370 million or 15% year over year [9] - Loan origination, including new lines of credit, reached $450 million for the quarter, with a weighted average rate of approximately 7% [9] - Core deposits increased by $1.2 billion year over year, with the deposit teams growing their portfolios to approximately $2.2 billion [7] Market Data and Key Metrics Changes - Non-brokered deposits rose by approximately $210 million at June 30 compared to the prior quarter [14] - The loan pipeline currently stands at $1.2 billion, up from approximately $1.1 billion at the end of March [10] Company Strategy and Development Direction - The company is focused on growing business loans and managing its commercial real estate (CRE) ratio lower, with a strategic emphasis on diversifying lending verticals [11][12] - Plans to open new branches in Lakewood, New Jersey, and Manhattan are underway, indicating a commitment to expanding its physical presence [11] - The company aims to maintain a strong liquidity position and capitalize on lending opportunities as they arise [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory and ability to attract talented bankers, differentiating itself from local competitors [12] - The company anticipates gradual upward bias in NIM for the third quarter, with more pronounced expansion expected in the fourth quarter as asset repricing occurs [17] - Management is optimistic about the potential for a structurally higher NIM and enhanced earnings power over time [18] Other Important Information - The common equity Tier one ratio increased to 11.25%, and the total capital ratio grew to 15.8%, providing a competitive advantage [16] - The company is not currently focused on buying securities but plans to redeploy cash into new lending verticals over the medium to long term [80] Q&A Session Summary Question: Was there anything one-time in nature regarding DDA balances? - Management confirmed that there was nothing one-time and noted continued strength in retail and private banking groups [24][25] Question: What is the impact of a 25 basis point rate cut on NII or margin? - Historically, a 25 basis point rate cut results in approximately five basis points of NIM expansion [31] Question: What are the operating expenses for the third quarter? - Operating expenses are expected to be approximately $61.5 million, excluding intangible amortization [30] Question: How does the company view M&A opportunities? - The company is open to M&A opportunities but is currently focused on organic growth [39] Question: What are the plans for loan loss reserves? - The goal is to reach a loan loss reserve ratio of 90 basis points to 1% over the medium to long term [57] Question: What is the outlook for loan growth with new verticals? - Each new vertical is expected to reach $300 million to $500 million in balances over time [55]

Weichai Power (000338.SZ) Strong earnings power underappreciated Apr 2025 Nick Zheng, CFA Goldman Sachs (Asia) L.L.C. +852 2978-1405 nick.zheng@gs.com Yan Lin Goldman Sachs (Asia) L.L.C. +852 2978-7020 yan.lin@gs.com Selina Yan Goldman Sachs (Asia) L.L.C. +852 2978-0178 shuling.yan@gs.com Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this rep ...