Bridgewater Bancshares, Inc. Announces Third Quarter 2024 Net Income of $8.7 Million, $0.27 Diluted Earnings Per Common Share
Bridgewater Bancshares (BWB) reported Q3 2024 net income of $8.7 million, or $0.27 diluted earnings per share, compared to $8.1 million in Q2 2024. Key highlights include a stable net interest margin of 2.24%, core deposit growth of $93.6 million (14.4% annualized), and a decrease in total deposits by $60.3 million. Gross loans decreased by $114.8 million due to elevated payoffs. The company maintained strong asset quality with an allowance for credit losses on loans at 1.38%. The efficiency ratio improved to 58.0% from 58.7% in Q2. The company also announced the strategic acquisition of First Minnetonka City Bank, expected to close in Q4 2024.
Bridgewater Bancshares (BWB) ha riportato un reddito netto per il terzo trimestre del 2024 pari a 8,7 milioni di dollari, ovvero 0,27 dollari per azione diluita, rispetto a 8,1 milioni di dollari nel secondo trimestre del 2024. I punti salienti includono un margine di interesse netto stabile al 2,24%, una crescita dei depositi core di 93,6 milioni di dollari (14,4% annualizzato) e una diminuzione dei depositi totali di 60,3 milioni di dollari. I prestiti lordi sono diminuiti di 114,8 milioni di dollari a causa di elevati rimborsi. L'azienda ha mantenuto una forte qualità degli attivi con una riserva per perdite su crediti sui prestiti pari all'1,38%. Il rapporto di efficienza è migliorato al 58,0% rispetto al 58,7% del secondo trimestre. L'azienda ha anche annunciato l'acquisizione strategica di First Minnetonka City Bank, prevista per la chiusura nel quarto trimestre del 2024.
Bridgewater Bancshares (BWB) reportó un ingreso neto en el tercer trimestre de 2024 de 8.7 millones de dólares, o 0.27 dólares por acción diluida, en comparación con 8.1 millones en el segundo trimestre de 2024. Los aspectos más destacados incluyen un margen de interés neto estable del 2.24%, un crecimiento en depósitos principales de 93.6 millones de dólares (14.4% anualizado) y una disminución en los depósitos totales de 60.3 millones de dólares. Los préstamos brutos disminuyeron en 114.8 millones de dólares debido a pagos elevados. La empresa mantuvo una fuerte calidad de activos con una reserva para pérdidas crediticias sobre préstamos del 1.38%. La relación de eficiencia mejoró al 58.0% desde el 58.7% en el segundo trimestre. La empresa también anunció la adquisición estratégica de First Minnetonka City Bank, que se espera cierre en el cuarto trimestre de 2024.
Bridgewater Bancshares (BWB)는 2024년 3분기 순이익으로 870만 달러를 보고했으며, 희석 주당순이익은 0.27달러로 2024년 2분기 810만 달러와 비교됩니다. 주요 내용으로는 안정적인 순이자 마진 2.24%, 기본 예금 성장 9360만 달러(연율 14.4%) 및 총 예금 6030만 달러 감소가 있습니다. 총 대출은 높은 상환으로 인해 1억 1480만 달러 감소했습니다. 회사는 대출에 대한 신용 손실 충당금이 1.38%로 강력한 자산 품질을 유지했습니다. 효율성 비율은 2분기 58.7%에서 58.0%로 개선되었습니다. 회사는 또한 2024년 4분기에 완료될 것으로 예상되는 First Minnetonka City Bank의 전략적 인수를 발표했습니다.
Bridgewater Bancshares (BWB) a rapporté un revenu net pour le troisième trimestre 2024 de 8,7 millions de dollars, soit 0,27 dollar de bénéfice par action dilué, comparé à 8,1 millions de dollars au deuxième trimestre 2024. Les faits marquants incluent une marge d'intérêt nette stable de 2,24%, une croissance des dépôts de base de 93,6 millions de dollars (14,4% annualisé) et une diminution des dépôts totaux de 60,3 millions de dollars. Les prêts bruts ont diminué de 114,8 millions de dollars en raison d'un remboursement élevé. L'entreprise a maintenu une forte qualité d'actifs avec une provision pour pertes sur prêts de 1,38%. Le ratio d'efficacité s'est amélioré à 58,0% contre 58,7% au 2e trimestre. L'entreprise a également annoncé l'acquisition stratégique de First Minnetonka City Bank, qui devrait se conclure au 4e trimestre 2024.
Bridgewater Bancshares (BWB) berichtete im 3. Quartal 2024 einen Nettogewinn von 8,7 Millionen Dollar, bzw. 0,27 Dollar verwässerter Gewinn je Aktie, im Vergleich zu 8,1 Millionen Dollar im 2. Quartal 2024. Zu den wichtigsten Punkten gehören eine stabile Nettozinsspanne von 2,24%, ein Wachstum der Kern-Depositen von 93,6 Millionen Dollar (annualisiert 14,4%) und ein Rückgang der Gesamteinlagen um 60,3 Millionen Dollar. Die Bruttokredite sanken aufgrund erhöhter Rückzahlungen um 114,8 Millionen Dollar. Das Unternehmen hielt eine starke Vermögensqualität aufrecht mit einer Rückstellung für Kreditverluste auf Kredite von 1,38%. Die Effizienzquote verbesserte sich von 58,7% im 2. Quartal auf 58,0%. Das Unternehmen gab auch die strategische Übernahme der First Minnetonka City Bank bekannt, die voraussichtlich im 4. Quartal 2024 abgeschlossen wird.
- Net income increased to $8.7 million from $8.1 million in Q2 2024
- Core deposits grew by $93.6 million (14.4% annualized)
- Net interest income increased by $603,000 (2.4%) from Q2 2024
- Efficiency ratio improved to 58.0% from 58.7% in Q2 2024
- Gross loans decreased by $114.8 million from Q2 2024
- Total deposits decreased by $60.3 million from Q2 2024
- Net loan charge-offs increased to 0.10% from 0.00% in Q2 2024
- Nonperforming assets increased to 0.19% from 0.01% in Q2 2024
Insights
Bridgewater Bancshares delivered a mixed Q3 2024 performance with some positive indicators amid challenging conditions. Net income increased to
Notable strengths include robust core deposit growth of
The pending acquisition of First Minnetonka City Bank, expected to close in Q4 2024, should enhance funding profile and provide strategic benefits through low-cost core deposits.
Third Quarter 2024 Highlights
-
Tangible book value per share(1) of
$13.96 $0.43 12.8% annualized, compared to$13.53 -
Pre-provision net revenue(1) increased
$489,000 4.5% , from the second quarter of 2024. -
Net interest income increased
$603,000 2.4% , from the second quarter of 2024. -
Net interest margin (on a fully tax-equivalent basis) of
2.24% for the third quarter of 2024, in line with the second quarter of 2024. -
Core deposits(2) increased by
$93.6 million 14.4% annualized, from the second quarter of 2024. Total deposits decreased by$60.3 million $131.3 million -
Gross loans decreased
$114.8 million -
Loan-to-deposit ratio of
98.3% , compared to99.8% at June 30, 2024. -
Efficiency ratio(1) of
58.0% , down from58.7% for the second quarter of 2024. -
No provision for credit losses on loans was recorded in the third quarter of 2024. The allowance for credit losses on loans to total loans was
1.38% at September 30, 2024, compared to1.37% at June 30, 2024. -
Annualized net loan charge-offs as a percentage of average loans of
0.10% for the third quarter of 2024, compared to0.00% for the second quarter of 2024, primarily driven by one central business district office loan. -
Nonperforming assets to total assets of
0.19% at September 30, 2024, compared to0.01% at June 30, 2024. - Announced the strategic acquisition of First Minnetonka City Bank. Received all required regulatory approvals in October 2024 and expect to close on the transaction during the fourth quarter of 2024.
(1) Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.
(2) Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than
“Bridgewater’s third quarter results were highlighted by robust core deposit growth and a stable net interest margin amid an improving interest rate backdrop following the Fed’s rate cut in September,” said Chairman and Chief Executive Officer, Jerry Baack. “As a result, we generated improved net interest income and pre-provision net revenue growth. Asset quality also remained a strength as we continued to see improving multifamily trends in
“In August, we were excited to announce the signing of a definitive agreement for the acquisition of First Minnetonka City Bank, which we expect to close during the fourth quarter of 2024. This deal brings several strategic benefits including a low-cost, core deposit base and balance sheet optionality. When combined with the strong core deposit growth we have generated year-to-date, we believe we will have an enhanced funding and liquidity profile that positions us well moving forward.”
Key Financial Measures
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As of and for the Three Months Ended |
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As of and for the Nine Months Ended |
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September 30, |
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June 30, |
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September 30, |
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September 30, |
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September 30, |
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2024 |
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2024 |
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2023 |
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2024 |
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2023 |
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Per Common Share Data |
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Basic Earnings Per Share |
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$ |
0.28 |
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$ |
0.26 |
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$ |
0.31 |
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$ |
0.79 |
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$ |
1.01 |
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Diluted Earnings Per Share |
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0.27 |
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0.26 |
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0.30 |
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0.77 |
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0.99 |
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Book Value Per Share |
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14.06 |
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13.63 |
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12.47 |
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14.06 |
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12.47 |
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Tangible Book Value Per Share (1) |
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13.96 |
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13.53 |
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12.37 |
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13.96 |
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12.37 |
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Financial Ratios |
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Return on Average Assets (2) |
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0.73 |
% |
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0.70 |
% |
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0.85 |
% |
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0.71 |
% |
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0.93 |
% |
Pre-Provision Net Revenue Return on Average Assets (1)(2) |
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0.96 |
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0.94 |
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1.01 |
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0.95 |
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1.22 |
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Return on Average Shareholders' Equity (2) |
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7.79 |
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7.49 |
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9.23 |
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7.55 |
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10.19 |
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Return on Average Tangible Common Equity (1)(2) |
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8.16 |
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7.80 |
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9.92 |
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7.87 |
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11.07 |
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Net Interest Margin (3) |
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2.24 |
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2.24 |
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2.32 |
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2.24 |
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2.47 |
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Core Net Interest Margin (1)(3) |
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2.16 |
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2.17 |
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2.24 |
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2.17 |
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2.39 |
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Cost of Total Deposits |
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3.58 |
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3.46 |
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2.99 |
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3.45 |
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2.57 |
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Cost of Funds |
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3.54 |
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3.49 |
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3.10 |
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3.46 |
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2.81 |
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Efficiency Ratio (1) |
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58.0 |
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58.7 |
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56.1 |
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58.3 |
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51.2 |
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Noninterest Expense to Average Assets (2) |
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1.33 |
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1.35 |
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1.34 |
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1.34 |
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1.30 |
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Tangible Common Equity to Tangible Assets (1) |
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8.17 |
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7.90 |
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7.61 |
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8.17 |
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7.61 |
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Common Equity Tier 1 Risk-based Capital Ratio (Consolidated) (4) |
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9.79 |
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9.41 |
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9.07 |
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9.79 |
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9.07 |
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Balance Sheet and Asset Quality (dollars in thousands) |
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Total Assets |
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$ |
4,691,517 |
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$ |
4,687,035 |
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$ |
4,557,070 |
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$ |
4,691,517 |
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$ |
4,557,070 |
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Total Loans, Gross |
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3,685,590 |
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3,800,385 |
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3,722,271 |
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3,685,590 |
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3,722,271 |
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Deposits |
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3,747,442 |
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3,807,712 |
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3,675,509 |
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3,747,442 |
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3,675,509 |
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Loan to Deposit Ratio |
|
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98.3 |
% |
|
99.8 |
% |
|
101.3 |
% |
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98.3 |
% |
|
101.3 |
% |
Net Loan Charge-Offs to Average Loans (2) |
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0.10 |
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0.00 |
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0.01 |
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0.03 |
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0.00 |
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Nonperforming Assets to Total Assets (5) |
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0.19 |
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0.01 |
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0.02 |
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0.19 |
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0.02 |
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Allowance for Credit Losses to Total Loans |
|
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1.38 |
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1.37 |
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1.36 |
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1.38 |
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1.36 |
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(1) |
Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details. |
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(2) |
Annualized. |
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(3) |
Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of |
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(4) |
Preliminary data. Current period subject to change prior to filings with applicable regulatory agencies. |
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(5) |
Nonperforming assets are defined as nonaccrual loans plus 90 days past due and still accruing plus foreclosed assets. |
Income Statement
Net Interest Margin and Net Interest Income
Net interest margin (on a fully tax-equivalent basis) for the third quarter of 2024 was
-
Net interest margin has remained stable at
2.24% each quarter in 2024. - The year-over-year decline in the margin was primarily due to higher funding costs, offset partially by higher earning asset yields.
Net interest income was
- The linked-quarter increase in net interest income was primarily due to increased cash balances, higher yields in the securities and loan portfolios and increased loan fees due to elevated loan payoffs, offset partially by decreased loan balances and higher rates paid on deposits.
- The year-over year increase in net interest income was primarily due to increased cash balances, growth and higher yields in the securities portfolio, and higher yields on loans, offset partially by growth and higher rates on deposits.
Interest income was
-
The yield on interest earning assets (on a fully tax-equivalent basis) was
5.48% in the third quarter of 2024, compared to5.41% in the second quarter of 2024 and5.14% in the third quarter of 2023. - The linked-quarter increase in the yield on interest earning assets was primarily due to continued repricing of assets at accretive yields.
- The year-over-year increase in the yield on interest earning assets was primarily due to the purchase of higher yielding securities and the repricing of the loan and securities portfolios in the higher interest rate environment.
-
Loan interest income and loan fees remained one of the primary contributing factors to the changes in the yield on interest earning assets. The aggregate loan yield increased to
5.57% in the third quarter of 2024, seven basis points higher than5.50% in the second quarter of 2024, and 31 basis points higher than5.26% in the third quarter of 2023. - The core loan yield continued to rise as new loan originations and the existing portfolio reprice in the higher rate environment.
A summary of interest and fees recognized on loans for the periods indicated is as follows:
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Three Months Ended |
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September 30, 2024 |
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June 30, 2024 |
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March 31, 2024 |
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December 31, 2023 |
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September 30, 2023 |
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Interest |
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5.47 |
% |
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5.42 |
% |
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5.31 |
% |
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5.25 |
% |
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5.16 |
% |
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Fees |
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0.10 |
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0.08 |
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0.07 |
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0.08 |
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0.10 |
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Yield on Loans |
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5.57 |
% |
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5.50 |
% |
|
5.38 |
% |
|
5.33 |
% |
|
5.26 |
% |
|
Interest expense was
-
The cost of interest bearing liabilities was
4.27% in the third quarter of 2024, compared to4.19% in the second quarter of 2024 and3.81% in the third quarter of 2023. - The linked-quarter increase in the cost of interest bearing liabilities was primarily due to higher rates paid on deposits, offset partially by a decrease in the utilization of overnight borrowings.
- The year-over-year increase in the cost of interest bearing liabilities was primarily due to continued deposit repricing in the higher rate environment.
Interest expense on deposits was
-
The cost of total deposits was
3.58% in the third quarter of 2024, compared to3.46% in the second quarter of 2024 and2.99% in the third quarter of 2023. - The linked-quarter increase in the cost of total deposits was primarily due to continued client demand for higher interest rates and increased competition.
- The year-over-year increase in the cost of total deposits was primarily due to upward repricing of the deposit portfolio in the higher interest rate environment.
Provision for Credit Losses
The provision for credit losses on loans was
- No provision for credit losses on loans was recorded in the third quarter of 2024. Although loans decreased during the quarter, increased loss rates and other qualitative factor adjustments resulted in no provision for the quarter.
-
The allowance for credit losses on loans to total loans was
1.38% at September 30, 2024, compared to1.37% at June 30, 2024 and1.36% at September 30, 2023.
The provision for credit losses for off-balance sheet credit exposures was
- No provision was recorded during the third quarter of 2024 due to unfunded commitments remaining stable as the migration to funded loans was offset by the volume of newly originated loans with unfunded commitments.
Noninterest Income
Noninterest income was
- The linked-quarter decrease was primarily due to a net loss on sale of securities in the third quarter and a net gain on sale of securities in the second quarter.
-
The year-over-year decrease was primarily due to
$493,000
Noninterest Expense
Noninterest expense was
- The linked-quarter increase was primarily due to increases in professional and consulting fees related to the acquisition of First Minnetonka City Bank and salaries and employee benefits, offset partially by a decrease in data processing and derivative collateral fees.
- The year-over-year increase was primarily attributable to increases in salaries and employee benefits, higher professional and consulting fees relating to the acquisition of First Minnetonka City Bank and increases in information technology and telecommunications and marketing and advertising expenses, offset partially by a decrease in the FDIC insurance assessment and lower derivative collateral fees.
-
The efficiency ratio, a non-GAAP financial measure, was
58.0% for the third quarter of 2024, compared to58.7% for the second quarter of 2024, and56.1% for the third quarter of 2023. - The Company had 265 full-time equivalent employees at September 30, 2024, compared to 258 at June 30, 2024, and 255 at September 30, 2023.
Income Taxes
The effective combined federal and state income tax rate was
Balance Sheet
Loans
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(dollars in thousands) |
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September 30, 2024 |
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June 30, 2024 |
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March 31, 2024 |
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December 31, 2023 |
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September 30, 2023 |
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Commercial |
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$ |
493,403 |
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$ |
518,762 |
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$ |
483,069 |
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$ |
464,061 |
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$ |
459,854 |
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Construction and Land Development |
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|
118,596 |
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|
134,096 |
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200,970 |
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232,804 |
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|
294,818 |
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1 - 4 Family Construction |
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45,822 |
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|
60,551 |
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65,606 |
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|
65,087 |
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|
64,463 |
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Real Estate Mortgage: |
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1 - 4 Family Mortgage |
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421,179 |
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|
416,944 |
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|
417,773 |
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|
402,396 |
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|
|
404,716 |
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Multifamily |
|
|
1,379,814 |
|
|
|
1,404,835 |
|
|
|
1,389,345 |
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|
|
1,388,541 |
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|
1,378,669 |
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CRE Owner Occupied |
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|
182,239 |
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|
185,988 |
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|
182,589 |
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|
175,783 |
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|
|
159,485 |
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CRE Nonowner Occupied |
|
|
1,032,142 |
|
|
|
1,070,050 |
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|
1,035,702 |
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|
987,306 |
|
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|
951,263 |
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Total Real Estate Mortgage Loans |
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|
3,015,374 |
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|
|
3,077,817 |
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|
|
3,025,409 |
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|
|
2,954,026 |
|
|
|
2,894,133 |
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Consumer and Other |
|
|
12,395 |
|
|
|
9,159 |
|
|
|
9,151 |
|
|
|
8,304 |
|
|
|
9,003 |
|
|
Total Loans, Gross |
|
|
3,685,590 |
|
|
|
3,800,385 |
|
|
|
3,784,205 |
|
|
|
3,724,282 |
|
|
|
3,722,271 |
|
|
Allowance for Credit Losses on Loans |
|
|
(51,018 |
) |
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|
(51,949 |
) |
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|
(51,347 |
) |
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|
(50,494 |
) |
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|
(50,585 |
) |
|
Net Deferred Loan Fees |
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(5,705 |
) |
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|
(6,214 |
) |
|
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(6,356 |
) |
|
|
(6,573 |
) |
|
|
(7,222 |
) |
|
Total Loans, Net |
|
$ |
3,628,867 |
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|
$ |
3,742,222 |
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|
$ |
3,726,502 |
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$ |
3,667,215 |
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|
$ |
3,664,464 |
|
|
Total gross loans at September 30, 2024 were
- The decrease in the loan portfolio during the third quarter of 2024 was due to elevated loan payoffs.
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
|||||
Noninterest Bearing Transaction Deposits |
|
$ |
713,309 |
|
$ |
705,175 |
|
$ |
698,432 |
|
$ |
756,964 |
|
$ |
754,297 |
|
Interest Bearing Transaction Deposits |
|
|
805,756 |
|
|
752,568 |
|
|
783,736 |
|
|
692,801 |
|
|
780,863 |
|
Savings and Money Market Deposits |
|
|
980,345 |
|
|
943,994 |
|
|
979,773 |
|
|
935,091 |
|
|
872,534 |
|
Time Deposits |
|
|
347,080 |
|
|
373,713 |
|
|
352,510 |
|
|
300,651 |
|
|
265,737 |
|
Brokered Deposits |
|
|
900,952 |
|
|
1,032,262 |
|
|
992,774 |
|
|
1,024,441 |
|
|
1,002,078 |
|
Total Deposits |
|
$ |
3,747,442 |
|
$ |
3,807,712 |
|
$ |
3,807,225 |
|
$ |
3,709,948 |
|
$ |
3,675,509 |
|
Total deposits at September 30, 2024 were
-
Core deposits, defined as total deposits excluding brokered deposits and time deposits greater than
$250,000 $93.6 million 14.4% annualized, from the second quarter of 2024. Growth in core deposits was due to both increased balances of existing clients and new client acquisitions. On a year-to-date basis, core deposits increased by$131.2 million 6.9% annualized. Based on the nature of the Company’s client base, core deposit balances can fluctuate from quarter to quarter, as deposit growth is not always linear. -
Brokered deposits, which declined by
$131.3 million 12.7% , in the current quarter, continue to be used as a supplemental funding source, as needed. -
Uninsured deposits were
25.0% of total deposits as of September 30, 2024, compared to22.5% of total deposits as of June 30, 2024.
Liquidity
Total on- and off-balance sheet liquidity was
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Primary Liquidity—On-Balance Sheet |
|
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
||||||||||
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and Cash Equivalents |
|
$ |
167,869 |
|
$ |
97,237 |
|
$ |
105,784 |
|
$ |
96,594 |
|
$ |
77,617 |
|
Securities Available for Sale |
|
|
664,715 |
|
|
601,057 |
|
|
633,282 |
|
|
604,104 |
|
|
553,076 |
|
Less: Pledged Securities |
|
|
(146,144 |
) |
|
(169,095 |
) |
|
(169,479 |
) |
|
(170,727 |
) |
|
(164,277 |
) |
Total Primary Liquidity |
|
$ |
686,440 |
|
$ |
529,199 |
|
$ |
569,587 |
|
$ |
529,971 |
|
$ |
466,416 |
|
Ratio of Primary Liquidity to Total Deposits |
|
|
18.3 |
% |
|
13.9 |
% |
|
15.0 |
% |
|
14.3 |
% |
|
12.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Secondary Liquidity—Off-Balance Sheet Borrowing Capacity |
|
|
|
|
|
|
|
|
|
|
|
|||||
Net Secured Borrowing Capacity with the FHLB |
|
$ |
509,223 |
|
$ |
451,171 |
|
$ |
446,801 |
|
$ |
498,736 |
|
$ |
516,501 |
|
Net Secured Borrowing Capacity with the Federal Reserve Bank |
|
|
867,955 |
|
|
1,015,873 |
|
|
1,006,010 |
|
|
979,448 |
|
|
1,022,128 |
|
Unsecured Borrowing Capacity with Correspondent Lenders |
|
|
200,000 |
|
|
200,000 |
|
|
200,000 |
|
|
200,000 |
|
|
150,000 |
|
Secured Borrowing Capacity with Correspondent Lender |
|
|
26,250 |
|
|
26,250 |
|
|
26,250 |
|
|
26,250 |
|
|
26,250 |
|
Total Secondary Liquidity |
|
$ |
1,603,428 |
|
$ |
1,693,294 |
|
$ |
1,679,061 |
|
$ |
1,704,434 |
|
$ |
1,714,879 |
|
Total Primary and Secondary Liquidity |
|
$ |
2,289,868 |
|
$ |
2,222,493 |
|
$ |
2,248,648 |
|
$ |
2,234,405 |
|
$ |
2,181,295 |
|
Ratio of Primary and Secondary Liquidity to Total Deposits |
|
|
61.1 |
% |
|
58.4 |
% |
|
59.1 |
% |
|
60.2 |
% |
|
59.3 |
% |
Asset Quality
Overall asset quality remained superb due to the Company’s measured risk selection, consistent underwriting standards, active credit oversight and experienced lending and credit teams.
-
Annualized net charge-offs as a percentage of average loans were
0.10% for the third quarter of 2024, compared to0.00% for the second quarter of 2024, and0.01% for the third quarter of 2023. The increase in net charge-offs was primarily due to one central business district office loan. -
At September 30, 2024, the Company’s nonperforming assets, which include nonaccrual loans, loans past due 90 days and still accruing, and foreclosed assets, were
$8.8 million 0.19% of total assets, compared to$678,000 0.01% , of total assets at June 30, 2024, and$749,000 0.02% , of total assets at September 30, 2023. The increase in nonperforming assets was primarily due to one central business district office loan that previously had a substandard risk rating. -
Loans with potential weaknesses that warranted a watchlist risk rating at September 30, 2024 totaled
$32.0 million $30.4 million $26.9 million -
Loans that warranted a substandard risk rating at September 30, 2024 totaled
$31.6 million $33.9 million $35.6 million
Capital
Total shareholders’ equity at September 30, 2024 was
- The linked-quarter increase was primarily due to net income retained and a decrease in unrealized losses in the securities portfolio, offset partially by a decrease in unrealized gains in the derivatives portfolio and preferred stock dividends.
- The year-over-year increase was due to net income retained and a decrease in unrealized losses in the securities portfolio, offset partially by a decrease in unrealized gains in the derivatives portfolio, preferred stock dividends, and stock repurchases.
-
The Common Equity Tier 1 Risk-Based Capital Ratio was
9.79% at September 30, 2024, compared to9.41% at June 30, 2024, and9.07% at September 30, 2023. -
Tangible common equity as a percentage of tangible assets, a non-GAAP financial measure, was
8.17% at September 30, 2024, compared to7.90% at June 30, 2024, and7.61% at September 30, 2023.
Tangible book value per share, a non-GAAP financial measure, was
- The Company has increased tangible book value per share each of the past 31 quarters.
The Company did not repurchase any shares of its common stock during the third quarter of 2024.
-
The Company has
$15.3 million
Today, the Company also announced that its Board of Directors has declared a quarterly cash dividend on its
Conference Call and Webcast
The Company will host a conference call to discuss its third quarter 2024 financial results on Thursday, October 24, 2024 at 8:00 a.m. Central Time. The conference call can be accessed by dialing 844-481-2913 and requesting to join the Bridgewater Bancshares earnings call. To listen to a replay of the conference call via phone, please dial 877-344-7529 and enter access code 1933700. The replay will be available through October 31, 2024. The conference call will also be available via a live webcast on the Investor Relations section of the Company’s website, investors.bridgewaterbankmn.com, and archived for replay.
About the Company
Bridgewater Bancshares, Inc. (Nasdaq: BWB) is a
Use of Non-GAAP financial measures
In addition to the results presented in accordance with
Forward-Looking Statements
This earnings release contains “forward-looking statements” within the meaning of the safe harbor provisions of the
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: interest rate risk, including the effects of changes in interest rates; fluctuations in the values of the securities held in our securities portfolio, including as the result of changes in interest rates; business and economic conditions generally and in the financial services industry, nationally and within our market area, including the level and impact of inflation and possible recession; the effects of developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in recent bank failures; loan concentrations in our portfolio; the overall health of the local and national real estate market; our ability to successfully manage credit risk; our ability to maintain an adequate level of allowance for credit losses on loans; new or revised accounting standards; the concentration of large loans to certain borrowers; the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; our ability to successfully manage liquidity risk, which may increase our dependence on non-core funding sources such as brokered deposits, and negatively impact our cost of funds; our ability to raise additional capital to implement our business plan; our ability to implement our growth strategy and manage costs effectively; the composition of our senior leadership team and our ability to attract and retain key personnel; talent and labor shortages and employee turnover; the occurrence of fraudulent activity, breaches or failures of our or our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; interruptions involving our information technology and telecommunications systems or third-party servicers; competition in the financial services industry, including from nonbank competitors such as credit unions and “fintech” companies; the effectiveness of our risk management framework; the commencement and outcome of litigation and other legal proceedings and regulatory actions against us; the impact of recent and future legislative and regulatory changes, including in response to recent bank failures; risks related to climate change and the negative impact it may have on our customers and their businesses; the imposition of other governmental policies impacting the value of products produced by our commercial borrowers; severe weather, natural disasters, wide spread disease or pandemics, acts of war or terrorism or other adverse external events, including the ongoing conflict in the
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Bridgewater Bancshares, Inc. and Subsidiaries Financial Highlights (dollars in thousands, except share data) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
As of and for the Three Months Ended |
|||||||||||||||
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
September 30, |
||||||||
(dollars in thousands) |
|
2024 |
|
2024 |
|
2024 |
|
2023 |
2023 |
||||||||
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
|
|
(Unaudited) |
|||
Income Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Net Interest Income |
|
$ |
25,599 |
|
$ |
24,996 |
|
$ |
24,631 |
|
$ |
25,314 |
|
$ |
25,421 |
|
|
Provision for (Recovery of) Credit Losses |
|
|
— |
|
|
600 |
|
|
750 |
|
|
(250 |
) |
|
(600 |
) |
|
Noninterest Income |
|
|
1,522 |
|
|
1,763 |
|
|
1,550 |
|
|
1,409 |
|
|
1,726 |
|
|
Noninterest Expense |
|
|
15,760 |
|
|
15,539 |
|
|
15,189 |
|
|
15,740 |
|
|
15,237 |
|
|
Net Income |
|
|
8,675 |
|
|
8,115 |
|
|
7,831 |
|
|
8,873 |
|
|
9,629 |
|
|
Net Income Available to Common Shareholders |
|
|
7,662 |
|
|
7,101 |
|
|
6,818 |
|
|
7,859 |
|
|
8,616 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Per Common Share Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Basic Earnings Per Share |
|
$ |
0.28 |
|
$ |
0.26 |
|
$ |
0.25 |
|
$ |
0.28 |
|
$ |
0.31 |
|
|
Diluted Earnings Per Share |
|
|
0.27 |
|
|
0.26 |
|
|
0.24 |
|
|
0.28 |
|
|
0.30 |
|
|
Book Value Per Share |
|
|
14.06 |
|
|
13.63 |
|
|
13.30 |
|
|
12.94 |
|
|
12.47 |
|
|
Tangible Book Value Per Share (1) |
|
|
13.96 |
|
|
13.53 |
|
|
13.20 |
|
|
12.84 |
|
|
12.37 |
|
|
Basic Weighted Average Shares Outstanding |
|
|
27,382,798 |
|
|
27,386,713 |
|
|
27,691,401 |
|
|
27,870,430 |
|
|
27,943,409 |
|
|
Diluted Weighted Average Shares Outstanding |
|
|
27,904,910 |
|
|
27,748,184 |
|
|
28,089,805 |
|
|
28,238,056 |
|
|
28,311,778 |
|
|
Shares Outstanding at Period End |
|
|
27,425,690 |
|
|
27,348,049 |
|
|
27,589,827 |
|
|
27,748,965 |
|
|
28,015,505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Financial Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Return on Average Assets (2) |
|
|
0.73 |
% |
|
0.70 |
% |
|
0.69 |
% |
|
0.77 |
% |
|
0.85 |
% |
|
Pre-Provision Net Revenue Return on Average Assets (1)(2) |
|
|
0.96 |
|
|
0.94 |
|
|
0.95 |
|
|
0.96 |
|
|
1.01 |
|
|
Return on Average Shareholders' Equity (2) |
|
|
7.79 |
|
|
7.49 |
|
|
7.35 |
|
|
8.43 |
|
|
9.23 |
|
|
Return on Average Tangible Common Equity (1)(2) |
|
|
8.16 |
|
|
7.80 |
|
|
7.64 |
|
|
8.95 |
|
|
9.92 |
|
|
Net Interest Margin (3) |
|
|
2.24 |
|
|
2.24 |
|
|
2.24 |
|
|
2.27 |
|
|
2.32 |
|
|
Core Net Interest Margin (1)(3) |
|
|
2.16 |
|
|
2.17 |
|
|
2.18 |
|
|
2.21 |
|
|
2.24 |
|
|
Cost of Total Deposits |
|
|
3.58 |
|
|
3.46 |
|
|
3.32 |
|
|
3.19 |
|
|
2.99 |
|
|
Cost of Funds |
|
|
3.54 |
|
|
3.49 |
|
|
3.34 |
|
|
3.23 |
|
|
3.10 |
|
|
Efficiency Ratio (1) |
|
|
58.0 |
|
|
58.7 |
|
|
58.2 |
|
|
58.8 |
|
|
56.1 |
|
|
Noninterest Expense to Average Assets (2) |
|
|
1.33 |
|
|
1.35 |
|
|
1.33 |
|
|
1.37 |
|
|
1.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Balance Sheet |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total Assets |
|
$ |
4,691,517 |
|
$ |
4,687,035 |
|
$ |
4,723,109 |
|
$ |
4,611,990 |
|
$ |
4,557,070 |
|
|
Total Loans, Gross |
|
|
3,685,590 |
|
|
3,800,385 |
|
|
3,784,205 |
|
|
3,724,282 |
|
|
3,722,271 |
|
|
Deposits |
|
|
3,747,442 |
|
|
3,807,712 |
|
|
3,807,225 |
|
|
3,709,948 |
|
|
3,675,509 |
|
|
Total Shareholders' Equity |
|
|
452,200 |
|
|
439,241 |
|
|
433,611 |
|
|
425,515 |
|
|
415,960 |
|
|
Loan to Deposit Ratio |
|
|
98.3 |
% |
|
99.8 |
% |
|
99.4 |
% |
|
100.4 |
% |
|
101.3 |
% |
|
Core Deposits to Total Deposits (4) |
|
|
71.5 |
|
|
67.9 |
|
|
69.3 |
|
|
68.7 |
|
|
70.3 |
|
|
Uninsured Deposits to Total Deposits |
|
|
25.0 |
|
|
22.5 |
|
|
26.0 |
|
|
24.3 |
|
|
22.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Asset Quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Net Loan Charge-Offs to Average Loans (2) |
|
|
0.10 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.01 |
% |
|
0.01 |
% |
|
Nonperforming Assets to Total Assets (5) |
|
|
0.19 |
|
|
0.01 |
|
|
0.01 |
|
|
0.02 |
|
|
0.02 |
|
|
Allowance for Credit Losses to Total Loans |
|
|
1.38 |
|
|
1.37 |
|
|
1.36 |
|
|
1.36 |
|
|
1.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Capital Ratios (Consolidated) (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Tier 1 Leverage Ratio |
|
|
9.75 |
% |
|
9.66 |
% |
|
9.66 |
% |
|
9.57 |
% |
|
9.62 |
% |
|
Common Equity Tier 1 Risk-based Capital Ratio |
|
|
9.79 |
|
|
9.41 |
|
|
9.21 |
|
|
9.16 |
|
|
9.07 |
|
|
Tier 1 Risk-based Capital Ratio |
|
|
11.44 |
|
|
11.03 |
|
|
10.83 |
|
|
10.79 |
|
|
10.69 |
|
|
Total Risk-based Capital Ratio |
|
|
14.62 |
|
|
14.16 |
|
|
14.00 |
|
|
13.97 |
|
|
13.88 |
|
|
Tangible Common Equity to Tangible Assets (1) |
|
|
8.17 |
|
|
7.90 |
|
|
7.72 |
|
|
7.73 |
|
|
7.61 |
|
|
(1) |
Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details. |
|
(2) |
Annualized. |
|
(3) |
Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of |
|
(4) |
Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than |
|
(5) |
Nonperforming assets are defined as nonaccrual loans plus 90 days past due and still accruing plus foreclosed assets. |
|
(6) |
Preliminary data. Current period subject to change prior to filings with applicable regulatory agencies. |
Bridgewater Bancshares, Inc. and Subsidiaries Consolidated Balance Sheets (dollars in thousands, except share data) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
||||||||||
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
|||||
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and Cash Equivalents |
|
$ |
191,859 |
|
|
$ |
134,093 |
|
|
$ |
143,355 |
|
|
$ |
128,562 |
|
|
$ |
124,358 |
|
Bank-Owned Certificates of Deposit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,225 |
|
Securities Available for Sale, at Fair Value |
|
|
664,715 |
|
|
|
601,057 |
|
|
|
633,282 |
|
|
|
604,104 |
|
|
|
553,076 |
|
Loans, Net of Allowance for Credit Losses |
|
|
3,628,867 |
|
|
|
3,742,222 |
|
|
|
3,726,502 |
|
|
|
3,667,215 |
|
|
|
3,664,464 |
|
Federal Home Loan Bank (FHLB) Stock, at Cost |
|
|
18,626 |
|
|
|
15,844 |
|
|
|
17,195 |
|
|
|
17,097 |
|
|
|
17,056 |
|
Premises and Equipment, Net |
|
|
47,777 |
|
|
|
47,902 |
|
|
|
48,299 |
|
|
|
48,886 |
|
|
|
49,331 |
|
Foreclosed Assets |
|
|
434 |
|
|
|
— |
|
|
|
20 |
|
|
|
— |
|
|
|
— |
|
Accrued Interest |
|
|
16,750 |
|
|
|
16,944 |
|
|
|
16,696 |
|
|
|
16,697 |
|
|
|
15,182 |
|
Goodwill |
|
|
2,626 |
|
|
|
2,626 |
|
|
|
2,626 |
|
|
|
2,626 |
|
|
|
2,626 |
|
Other Intangible Assets, Net |
|
|
163 |
|
|
|
171 |
|
|
|
180 |
|
|
|
188 |
|
|
|
197 |
|
Bank-Owned Life Insurance |
|
|
38,219 |
|
|
|
35,090 |
|
|
|
34,778 |
|
|
|
34,477 |
|
|
|
34,209 |
|
Other Assets |
|
|
81,481 |
|
|
|
91,086 |
|
|
|
100,176 |
|
|
|
92,138 |
|
|
|
95,346 |
|
Total Assets |
|
$ |
4,691,517 |
|
|
$ |
4,687,035 |
|
|
$ |
4,723,109 |
|
|
$ |
4,611,990 |
|
|
$ |
4,557,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Noninterest Bearing |
|
$ |
713,309 |
|
|
$ |
705,175 |
|
|
$ |
698,432 |
|
|
$ |
756,964 |
|
|
$ |
754,297 |
|
Interest Bearing |
|
|
3,034,133 |
|
|
|
3,102,537 |
|
|
|
3,108,793 |
|
|
|
2,952,984 |
|
|
|
2,921,212 |
|
Total Deposits |
|
|
3,747,442 |
|
|
|
3,807,712 |
|
|
|
3,807,225 |
|
|
|
3,709,948 |
|
|
|
3,675,509 |
|
Notes Payable |
|
|
13,750 |
|
|
|
13,750 |
|
|
|
13,750 |
|
|
|
13,750 |
|
|
|
13,750 |
|
FHLB Advances |
|
|
349,500 |
|
|
|
287,000 |
|
|
|
317,000 |
|
|
|
319,500 |
|
|
|
294,500 |
|
Subordinated Debentures, Net of Issuance Costs |
|
|
79,574 |
|
|
|
79,479 |
|
|
|
79,383 |
|
|
|
79,288 |
|
|
|
79,192 |
|
Accrued Interest Payable |
|
|
3,458 |
|
|
|
3,999 |
|
|
|
4,405 |
|
|
|
5,282 |
|
|
|
3,816 |
|
Other Liabilities |
|
|
45,593 |
|
|
|
55,854 |
|
|
|
67,735 |
|
|
|
58,707 |
|
|
|
74,343 |
|
Total Liabilities |
|
|
4,239,317 |
|
|
|
4,247,794 |
|
|
|
4,289,498 |
|
|
|
4,186,475 |
|
|
|
4,141,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Preferred Stock- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Preferred Stock - Issued and Outstanding 27,600 Series A shares ( |
|
|
66,514 |
|
|
|
66,514 |
|
|
|
66,514 |
|
|
|
66,514 |
|
|
|
66,514 |
|
Common Stock- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Common Stock - Issued and Outstanding 27,425,690 at September 30, 2024 (unaudited), 27,348,049 at June 30, 2024 (unaudited), 27,589,827 at March 31, 2024 (unaudited), 27,748,965 at December 31, 2023 and 28,015,505 at September 30, 2023 (unaudited) |
|
|
274 |
|
|
|
273 |
|
|
|
276 |
|
|
|
277 |
|
|
|
280 |
|
Additional Paid-In Capital |
|
|
94,597 |
|
|
|
93,205 |
|
|
|
95,069 |
|
|
|
96,320 |
|
|
|
100,120 |
|
Retained Earnings |
|
|
302,231 |
|
|
|
294,569 |
|
|
|
287,468 |
|
|
|
280,650 |
|
|
|
272,812 |
|
Accumulated Other Comprehensive Loss |
|
|
(11,416 |
) |
|
|
(15,320 |
) |
|
|
(15,716 |
) |
|
|
(18,246 |
) |
|
|
(23,766 |
) |
Total Shareholders' Equity |
|
|
452,200 |
|
|
|
439,241 |
|
|
|
433,611 |
|
|
|
425,515 |
|
|
|
415,960 |
|
Total Liabilities and Equity |
|
$ |
4,691,517 |
|
|
$ |
4,687,035 |
|
|
$ |
4,723,109 |
|
|
$ |
4,611,990 |
|
|
$ |
4,557,070 |
|
Bridgewater Bancshares, Inc. and Subsidiaries Consolidated Statements of Income (dollars in thousands, except per share data) (Unaudited) |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||||||
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
September 30, |
|
September 30, |
||||||||||||||
(dollars in thousands) |
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||||
Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Loans, Including Fees |
|
$ |
51,895 |
|
|
$ |
51,385 |
|
|
$ |
49,581 |
|
|
$ |
49,727 |
|
|
$ |
48,999 |
|
|
$ |
152,861 |
|
|
$ |
141,675 |
|
Investment Securities |
|
|
8,725 |
|
|
|
8,177 |
|
|
|
7,916 |
|
|
|
7,283 |
|
|
|
6,507 |
|
|
|
24,818 |
|
|
|
18,962 |
|
Other |
|
|
2,407 |
|
|
|
1,316 |
|
|
|
1,172 |
|
|
|
1,543 |
|
|
|
1,303 |
|
|
|
4,895 |
|
|
|
3,165 |
|
Total Interest Income |
|
|
63,027 |
|
|
|
60,878 |
|
|
|
58,669 |
|
|
|
58,553 |
|
|
|
56,809 |
|
|
|
182,574 |
|
|
|
163,802 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Deposits |
|
|
34,187 |
|
|
|
31,618 |
|
|
|
30,190 |
|
|
|
29,448 |
|
|
|
27,225 |
|
|
|
95,995 |
|
|
|
66,597 |
|
Federal Funds Purchased |
|
|
2 |
|
|
|
853 |
|
|
|
304 |
|
|
|
268 |
|
|
|
548 |
|
|
|
1,159 |
|
|
|
8,253 |
|
Notes Payable |
|
|
296 |
|
|
|
296 |
|
|
|
295 |
|
|
|
299 |
|
|
|
296 |
|
|
|
887 |
|
|
|
844 |
|
FHLB Advances |
|
|
1,942 |
|
|
|
2,125 |
|
|
|
2,258 |
|
|
|
2,220 |
|
|
|
2,316 |
|
|
|
6,325 |
|
|
|
5,269 |
|
Subordinated Debentures |
|
|
1,001 |
|
|
|
990 |
|
|
|
991 |
|
|
|
1,004 |
|
|
|
1,003 |
|
|
|
2,982 |
|
|
|
2,979 |
|
Total Interest Expense |
|
|
37,428 |
|
|
|
35,882 |
|
|
|
34,038 |
|
|
|
33,239 |
|
|
|
31,388 |
|
|
|
107,348 |
|
|
|
83,942 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net Interest Income |
|
|
25,599 |
|
|
|
24,996 |
|
|
|
24,631 |
|
|
|
25,314 |
|
|
|
25,421 |
|
|
|
75,226 |
|
|
|
79,860 |
|
Provision for (Recovery of) Credit Losses |
|
|
— |
|
|
|
600 |
|
|
|
750 |
|
|
|
(250 |
) |
|
|
(600 |
) |
|
|
1,350 |
|
|
|
75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net Interest Income After Provision for Credit Losses |
|
|
25,599 |
|
|
|
24,396 |
|
|
|
23,881 |
|
|
|
25,564 |
|
|
|
26,021 |
|
|
|
73,876 |
|
|
|
79,785 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Noninterest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Customer Service Fees |
|
|
373 |
|
|
|
366 |
|
|
|
342 |
|
|
|
359 |
|
|
|
379 |
|
|
|
1,081 |
|
|
|
1,096 |
|
Net Gain (Loss) on Sales of Securities |
|
|
(28 |
) |
|
|
320 |
|
|
|
93 |
|
|
|
(27 |
) |
|
|
— |
|
|
|
385 |
|
|
|
(6 |
) |
Letter of Credit Fees |
|
|
424 |
|
|
|
387 |
|
|
|
316 |
|
|
|
418 |
|
|
|
315 |
|
|
|
1,127 |
|
|
|
1,328 |
|
Debit Card Interchange Fees |
|
|
152 |
|
|
|
155 |
|
|
|
141 |
|
|
|
152 |
|
|
|
150 |
|
|
|
448 |
|
|
|
443 |
|
Bank-Owned Life Insurance |
|
|
352 |
|
|
|
312 |
|
|
|
301 |
|
|
|
268 |
|
|
|
252 |
|
|
|
965 |
|
|
|
724 |
|
FHLB Prepayment Income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
493 |
|
|
|
— |
|
|
|
792 |
|
Other Income |
|
|
249 |
|
|
|
223 |
|
|
|
357 |
|
|
|
239 |
|
|
|
137 |
|
|
|
829 |
|
|
|
707 |
|
Total Noninterest Income |
|
|
1,522 |
|
|
|
1,763 |
|
|
|
1,550 |
|
|
|
1,409 |
|
|
|
1,726 |
|
|
|
4,835 |
|
|
|
5,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Salaries and Employee Benefits |
|
|
9,851 |
|
|
|
9,675 |
|
|
|
9,433 |
|
|
|
9,615 |
|
|
|
9,519 |
|
|
|
28,959 |
|
|
|
26,923 |
|
Occupancy and Equipment |
|
|
1,069 |
|
|
|
1,092 |
|
|
|
1,057 |
|
|
|
1,062 |
|
|
|
1,101 |
|
|
|
3,218 |
|
|
|
3,385 |
|
FDIC Insurance Assessment |
|
|
750 |
|
|
|
725 |
|
|
|
875 |
|
|
|
1,050 |
|
|
|
1,075 |
|
|
|
2,350 |
|
|
|
2,640 |
|
Data Processing |
|
|
368 |
|
|
|
472 |
|
|
|
412 |
|
|
|
424 |
|
|
|
392 |
|
|
|
1,252 |
|
|
|
1,150 |
|
Professional and Consulting Fees |
|
|
1,149 |
|
|
|
852 |
|
|
|
889 |
|
|
|
782 |
|
|
|
715 |
|
|
|
2,890 |
|
|
|
2,299 |
|
Derivative Collateral Fees |
|
|
381 |
|
|
|
528 |
|
|
|
486 |
|
|
|
573 |
|
|
|
543 |
|
|
|
1,395 |
|
|
|
1,327 |
|
Information Technology and Telecommunications |
|
|
840 |
|
|
|
812 |
|
|
|
796 |
|
|
|
812 |
|
|
|
683 |
|
|
|
2,448 |
|
|
|
2,077 |
|
Marketing and Advertising |
|
|
367 |
|
|
|
317 |
|
|
|
322 |
|
|
|
324 |
|
|
|
222 |
|
|
|
1,006 |
|
|
|
805 |
|
Intangible Asset Amortization |
|
|
9 |
|
|
|
8 |
|
|
|
9 |
|
|
|
9 |
|
|
|
9 |
|
|
|
26 |
|
|
|
91 |
|
Other Expense |
|
|
976 |
|
|
|
1,058 |
|
|
|
910 |
|
|
|
1,089 |
|
|
|
978 |
|
|
|
2,944 |
|
|
|
2,883 |
|
Total Noninterest Expense |
|
|
15,760 |
|
|
|
15,539 |
|
|
|
15,189 |
|
|
|
15,740 |
|
|
|
15,237 |
|
|
|
46,488 |
|
|
|
43,580 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Income Before Income Taxes |
|
|
11,361 |
|
|
|
10,620 |
|
|
|
10,242 |
|
|
|
11,233 |
|
|
|
12,510 |
|
|
|
32,223 |
|
|
|
41,289 |
|
Provision for Income Taxes |
|
|
2,686 |
|
|
|
2,505 |
|
|
|
2,411 |
|
|
|
2,360 |
|
|
|
2,881 |
|
|
|
7,602 |
|
|
|
10,202 |
|
Net Income |
|
|
8,675 |
|
|
|
8,115 |
|
|
|
7,831 |
|
|
|
8,873 |
|
|
|
9,629 |
|
|
|
24,621 |
|
|
|
31,087 |
|
Preferred Stock Dividends |
|
|
(1,013 |
) |
|
|
(1,014 |
) |
|
|
(1,013 |
) |
|
|
(1,014 |
) |
|
|
(1,013 |
) |
|
|
(3,040 |
) |
|
|
(3,040 |
) |
Net Income Available to Common Shareholders |
|
$ |
7,662 |
|
|
$ |
7,101 |
|
|
$ |
6,818 |
|
|
$ |
7,859 |
|
|
$ |
8,616 |
|
|
$ |
21,581 |
|
|
$ |
28,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
$ |
0.28 |
|
|
$ |
0.26 |
|
|
$ |
0.25 |
|
|
$ |
0.28 |
|
|
$ |
0.31 |
|
|
$ |
0.79 |
|
|
$ |
1.01 |
|
Diluted |
|
|
0.27 |
|
|
|
0.26 |
|
|
|
0.24 |
|
|
|
0.28 |
|
|
|
0.30 |
|
|
|
0.77 |
|
|
|
0.99 |
|
Bridgewater Bancshares, Inc. and Subsidiaries Analysis of Average Balances, Yields and Rates (dollars in thousands, except per share data) (Unaudited) |
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
For the Three Months Ended |
|
||||||||||||||||||||||||||||
|
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|
||||||||||||||||||||||||
|
|
Average |
|
Interest |
|
Yield/ |
|
Average |
|
Interest |
|
Yield/ |
|
Average |
|
Interest |
|
Yield/ |
|
||||||||||||
(dollars in thousands) |
|
Balance |
|
& Fees |
|
Rate |
|
Balance |
|
& Fees |
|
Rate |
|
Balance |
|
& Fees |
|
Rate |
|
||||||||||||
Interest Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash Investments |
|
$ |
157,114 |
|
$ |
1,971 |
|
|
4.99 |
% |
$ |
81,672 |
|
$ |
922 |
|
|
4.54 |
% |
$ |
81,038 |
|
$ |
903 |
|
|
4.42 |
% |
|||
Investment Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Taxable Investment Securities |
|
|
668,429 |
|
|
8,406 |
|
|
5.00 |
|
|
641,469 |
|
|
7,861 |
|
|
4.93 |
|
|
565,008 |
|
|
6,234 |
|
|
4.38 |
|
|||
Tax-Exempt Investment Securities (1) |
|
|
31,496 |
|
|
402 |
|
|
5.08 |
|
|
31,550 |
|
|
401 |
|
|
5.11 |
|
|
29,955 |
|
|
346 |
|
|
4.58 |
|
|||
Total Investment Securities |
|
|
699,925 |
|
|
8,808 |
|
|
5.01 |
|
|
673,019 |
|
|
8,262 |
|
|
4.94 |
|
|
594,963 |
|
|
6,580 |
|
|
4.39 |
|
|||
Loans (1)(2) |
|
|
3,721,654 |
|
|
52,118 |
|
|
5.57 |
|
|
3,771,768 |
|
|
51,592 |
|
|
5.50 |
|
|
3,722,594 |
|
|
49,326 |
|
|
5.26 |
|
|||
Federal Home Loan Bank Stock |
|
|
16,828 |
|
|
436 |
|
|
10.31 |
|
|
19,461 |
|
|
394 |
|
|
8.15 |
|
|
17,829 |
|
|
400 |
|
|
8.89 |
|
|||
Total Interest Earning Assets |
|
|
4,595,521 |
|
|
63,333 |
|
|
5.48 |
% |
|
4,545,920 |
|
|
61,170 |
|
|
5.41 |
% |
|
4,416,424 |
|
|
57,209 |
|
|
5.14 |
% |
|||
Noninterest Earning Assets |
|
|
108,283 |
|
|
|
|
|
|
|
100,597 |
|
|
|
|
|
|
|
88,513 |
|
|
|
|
|
|
||||||
Total Assets |
|
$ |
4,703,804 |
|
|
|
|
|
|
$ |
4,646,517 |
|
|
|
|
|
|
$ |
4,504,937 |
|
|
|
|
|
|
||||||
Interest Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest Bearing Transaction Deposits |
|
$ |
804,161 |
|
$ |
9,369 |
|
|
4.63 |
% |
$ |
732,923 |
|
$ |
8,270 |
|
|
4.54 |
% |
$ |
730,244 |
|
$ |
7,136 |
|
|
3.88 |
% |
|||
Savings and Money Market Deposits |
|
|
939,665 |
|
|
10,262 |
|
|
4.34 |
|
|
914,397 |
|
|
9,459 |
|
|
4.16 |
|
|
874,612 |
|
|
8,089 |
|
|
3.67 |
|
|||
Time Deposits |
|
|
355,050 |
|
|
3,918 |
|
|
4.39 |
|
|
360,691 |
|
|
3,850 |
|
|
4.30 |
|
|
266,635 |
|
|
1,962 |
|
|
2.92 |
|
|||
Brokered Deposits |
|
|
989,712 |
|
|
10,638 |
|
|
4.28 |
|
|
976,467 |
|
|
10,039 |
|
|
4.13 |
|
|
985,276 |
|
|
10,038 |
|
|
4.04 |
|
|||
Total Interest Bearing Deposits |
|
|
3,088,588 |
|
|
34,187 |
|
|
4.40 |
|
|
2,984,478 |
|
|
31,618 |
|
|
4.26 |
|
|
2,856,767 |
|
|
27,225 |
|
|
3.78 |
|
|||
Federal Funds Purchased |
|
|
141 |
|
|
2 |
|
|
5.72 |
|
|
61,151 |
|
|
853 |
|
|
5.61 |
|
|
39,641 |
|
|
548 |
|
|
5.48 |
|
|||
Notes Payable |
|
|
13,750 |
|
|
296 |
|
|
8.58 |
|
|
13,750 |
|
|
296 |
|
|
8.64 |
|
|
13,750 |
|
|
296 |
|
|
8.58 |
|
|||
FHLB Advances |
|
|
309,120 |
|
|
1,942 |
|
|
2.50 |
|
|
306,396 |
|
|
2,125 |
|
|
2.79 |
|
|
275,261 |
|
|
2,316 |
|
|
3.34 |
|
|||
Subordinated Debentures |
|
|
79,519 |
|
|
1,001 |
|
|
5.01 |
|
|
79,424 |
|
|
990 |
|
|
5.02 |
|
|
79,137 |
|
|
1,003 |
|
|
5.03 |
|
|||
Total Interest Bearing Liabilities |
|
|
3,491,118 |
|
|
37,428 |
|
|
4.27 |
% |
|
3,445,199 |
|
|
35,882 |
|
|
4.19 |
% |
|
3,264,556 |
|
|
31,388 |
|
|
3.81 |
% |
|||
Noninterest Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Noninterest Bearing Transaction Deposits |
|
|
710,192 |
|
|
|
|
|
|
|
691,891 |
|
|
|
|
|
|
|
754,567 |
|
|
|
|
|
|
||||||
Other Noninterest Bearing Liabilities |
|
|
59,417 |
|
|
|
|
|
|
|
73,842 |
|
|
|
|
|
|
|
71,767 |
|
|
|
|
|
|
||||||
Total Noninterest Bearing Liabilities |
|
|
769,609 |
|
|
|
|
|
|
|
765,733 |
|
|
|
|
|
|
|
826,334 |
|
|
|
|
|
|
||||||
Shareholders' Equity |
|
|
443,077 |
|
|
|
|
|
|
|
435,585 |
|
|
|
|
|
|
|
414,047 |
|
|
|
|
|
|
||||||
Total Liabilities and Shareholders' Equity |
|
$ |
4,703,804 |
|
|
|
|
|
|
$ |
4,646,517 |
|
|
|
|
|
|
$ |
4,504,937 |
|
|
|
|
|
|
||||||
Net Interest Income / Interest Rate Spread |
|
|
|
|
|
25,905 |
|
|
1.21 |
% |
|
|
|
|
25,288 |
|
|
1.22 |
% |
|
|
|
|
25,821 |
|
|
1.33 |
% |
|||
Net Interest Margin (3) |
|
|
|
|
|
|
|
2.24 |
% |
|
|
|
|
|
|
2.24 |
% |
|
|
|
|
|
|
2.32 |
% |
||||||
Taxable Equivalent Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Tax-Exempt Investment Securities and Loans |
|
|
|
|
|
(306 |
) |
|
|
|
|
|
|
|
(292 |
) |
|
|
|
|
|
|
|
(400 |
) |
|
|
|
|||
Net Interest Income |
|
|
|
|
$ |
25,599 |
|
|
|
|
|
|
|
$ |
24,996 |
|
|
|
|
|
|
|
$ |
25,421 |
|
|
|
|
|||
(1) |
Interest income and average rates for tax-exempt investment securities and loans are presented on a tax-equivalent basis, assuming a statutory federal income tax rate of |
|
(2) |
Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs. |
|
(3) |
Net interest margin includes the tax equivalent adjustment and represents the annualized results of: (i) the difference between interest income on interest earning assets and the interest expense on interest bearing liabilities, divided by (ii) average interest earning assets for the period. |
Bridgewater Bancshares, Inc. and Subsidiaries Analysis of Average Balances, Yields and Rates (dollars in thousands, except per share data) (Unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
For the Nine Months Ended |
|
|||||||||||||||||
|
|
September 30, 2024 |
|
September 30, 2023 |
|
|||||||||||||||
|
|
Average |
|
Interest |
|
Yield/ |
|
Average |
|
Interest |
|
Yield/ |
|
|||||||
(dollars in thousands) |
|
Balance |
|
& Fees |
|
Rate |
|
Balance |
|
& Fees |
|
Rate |
|
|||||||
Interest Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Cash Investments |
|
$ |
104,831 |
|
$ |
3,722 |
|
|
4.74 |
% |
$ |
68,150 |
|
$ |
1,937 |
|
|
3.80 |
% |
|
Investment Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Taxable Investment Securities |
|
|
649,538 |
|
|
23,867 |
|
|
4.91 |
|
|
569,097 |
|
|
18,192 |
|
|
4.27 |
|
|
Tax-Exempt Investment Securities (1) |
|
|
31,597 |
|
|
1,203 |
|
|
5.09 |
|
|
28,947 |
|
|
975 |
|
|
4.50 |
|
|
Total Investment Securities |
|
|
681,135 |
|
|
25,070 |
|
|
4.92 |
|
|
598,044 |
|
|
19,167 |
|
|
4.29 |
|
|
Loans (1)(2) |
|
|
3,740,855 |
|
|
153,568 |
|
|
5.48 |
|
|
3,690,196 |
|
|
142,659 |
|
|
5.17 |
|
|
Federal Home Loan Bank Stock |
|
|
18,111 |
|
|
1,173 |
|
|
8.65 |
|
|
22,343 |
|
|
1,228 |
|
|
7.34 |
|
|
Total Interest Earning Assets |
|
|
4,544,932 |
|
|
183,533 |
|
|
5.39 |
% |
|
4,378,733 |
|
|
164,991 |
|
|
5.04 |
% |
|
Noninterest Earning Assets |
|
|
102,993 |
|
|
|
|
|
|
|
86,243 |
|
|
|
|
|
|
|||
Total Assets |
|
$ |
4,647,925 |
|
|
|
|
|
|
$ |
4,464,976 |
|
|
|
|
|
|
|||
Interest Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Interest Bearing Transaction Deposits |
|
$ |
757,409 |
|
$ |
25,332 |
|
|
4.47 |
% |
$ |
625,531 |
|
$ |
15,833 |
|
|
3.38 |
% |
|
Savings and Money Market Deposits |
|
|
917,051 |
|
|
28,502 |
|
|
4.15 |
|
|
926,494 |
|
|
21,636 |
|
|
3.12 |
|
|
Time Deposits |
|
|
344,484 |
|
|
10,935 |
|
|
4.24 |
|
|
261,474 |
|
|
4,734 |
|
|
2.42 |
|
|
Brokered Deposits |
|
|
993,445 |
|
|
31,226 |
|
|
4.20 |
|
|
876,130 |
|
|
24,394 |
|
|
3.72 |
|
|
Total Interest Bearing Deposits |
|
|
3,012,389 |
|
|
95,995 |
|
|
4.26 |
|
|
2,689,629 |
|
|
66,597 |
|
|
3.31 |
|
|
Federal Funds Purchased |
|
|
27,605 |
|
|
1,159 |
|
|
5.61 |
|
|
220,434 |
|
|
8,253 |
|
|
5.01 |
|
|
Notes Payable |
|
|
13,750 |
|
|
887 |
|
|
8.62 |
|
|
13,750 |
|
|
844 |
|
|
8.21 |
|
|
FHLB Advances |
|
|
311,380 |
|
|
6,325 |
|
|
2.71 |
|
|
215,938 |
|
|
5,269 |
|
|
3.26 |
|
|
Subordinated Debentures |
|
|
79,424 |
|
|
2,982 |
|
|
5.02 |
|
|
79,042 |
|
|
2,979 |
|
|
5.04 |
|
|
Total Interest Bearing Liabilities |
|
|
3,444,548 |
|
|
107,348 |
|
|
4.16 |
% |
|
3,218,793 |
|
|
83,942 |
|
|
3.49 |
% |
|
Noninterest Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Noninterest Bearing Transaction Deposits |
|
|
700,308 |
|
|
|
|
|
|
|
774,523 |
|
|
|
|
|
|
|||
Other Noninterest Bearing Liabilities |
|
|
67,405 |
|
|
|
|
|
|
|
63,646 |
|
|
|
|
|
|
|||
Total Noninterest Bearing Liabilities |
|
|
767,713 |
|
|
|
|
|
|
|
838,169 |
|
|
|
|
|
|
|||
Shareholders' Equity |
|
|
435,664 |
|
|
|
|
|
|
|
408,014 |
|
|
|
|
|
|
|||
Total Liabilities and Shareholders' Equity |
|
$ |
4,647,925 |
|
|
|
|
|
|
$ |
4,464,976 |
|
|
|
|
|
|
|||
Net Interest Income / Interest Rate Spread |
|
|
|
|
|
76,185 |
|
|
1.23 |
% |
|
|
|
|
81,049 |
|
|
1.55 |
% |
|
Net Interest Margin (3) |
|
|
|
|
|
|
|
2.24 |
% |
|
|
|
|
|
|
2.47 |
% |
|||
Taxable Equivalent Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Tax-Exempt Investment Securities and Loans |
|
|
|
|
|
(959 |
) |
|
|
|
|
|
|
|
(1,189 |
) |
|
|
|
|
Net Interest Income |
|
|
|
|
$ |
75,226 |
|
|
|
|
|
|
|
$ |
79,860 |
|
|
|
|
|
Bridgewater Bancshares, Inc. and Subsidiaries Asset Quality Summary (dollars in thousands) (unaudited) |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
As of and for the Three Months Ended |
|
As of and for the Nine Months Ended |
||||||||||||||||||||||||
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
September 30, |
|
September 30, |
||||||||||||||
(dollars in thousands) |
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||||
Allowance for Credit Losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at Beginning of Period |
|
$ |
51,949 |
|
$ |
51,347 |
|
$ |
50,494 |
|
$ |
50,585 |
|
$ |
50,701 |
|
$ |
50,494 |
|
$ |
47,996 |
|
||||||
Impact of Adopting CECL |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
650 |
|
||||||
Provision for Credit Losses |
|
|
— |
|
|
600 |
|
|
850 |
|
|
— |
|
|
— |
|
|
1,450 |
|
|
2,050 |
|
||||||
Charge-offs |
|
|
(937 |
) |
|
(10 |
) |
|
(2 |
) |
|
(95 |
) |
|
(122 |
) |
|
(949 |
) |
|
(129 |
) |
||||||
Recoveries |
|
|
6 |
|
|
12 |
|
|
5 |
|
|
4 |
|
|
6 |
|
|
23 |
|
|
18 |
|
||||||
Net Charge-offs |
|
$ |
(931 |
) |
$ |
2 |
|
$ |
3 |
|
$ |
(91 |
) |
$ |
(116 |
) |
$ |
(926 |
) |
$ |
(111 |
) |
||||||
Balance at End of Period |
|
|
51,018 |
|
|
51,949 |
|
|
51,347 |
|
|
50,494 |
|
|
50,585 |
|
|
51,018 |
|
|
50,585 |
|
||||||
Allowance for Credit Losses to Total Loans |
|
|
1.38 |
% |
|
1.37 |
% |
|
1.36 |
% |
|
1.36 |
% |
|
1.36 |
% |
|
1.38 |
% |
|
1.36 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
As of and for the Three Months Ended |
As of and for the Nine Months Ended |
|||||||||||||||||||||||||
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
September 30, |
|
September 30, |
||||||||||||||
(dollars in thousands) |
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||||
Provision for Credit Losses on Loans |
|
$ |
— |
|
$ |
600 |
|
$ |
850 |
|
$ |
— |
|
$ |
— |
|
$ |
1,450 |
|
$ |
2,050 |
|
||||||
Recovery of Credit Losses for Off-Balance Sheet Credit Exposures |
|
|
— |
|
|
— |
|
|
(100 |
) |
|
(250 |
) |
|
(600 |
) |
|
(100 |
) |
|
(1,975 |
) |
||||||
Provision for (Recovery of) Credit Losses |
|
$ |
— |
|
$ |
600 |
|
$ |
750 |
|
$ |
(250 |
) |
$ |
(600 |
) |
$ |
1,350 |
|
$ |
75 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Three Months Ended |
|
|||||||||||||
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|||||
(dollars in thousands) |
|
2024 |
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
|||||
Selected Asset Quality Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans 30-89 Days Past Due |
|
$ |
65 |
|
$ |
502 |
|
$ |
— |
|
$ |
15,110 |
|
$ |
11 |
|
Loans 30-89 Days Past Due to Total Loans |
|
|
0.00 |
% |
|
0.01 |
% |
|
0.00 |
% |
|
0.41 |
% |
|
0.00 |
% |
Nonperforming Loans |
|
$ |
8,378 |
|
$ |
678 |
|
$ |
249 |
|
$ |
919 |
|
$ |
749 |
|
Nonperforming Loans to Total Loans |
|
|
0.23 |
% |
|
0.02 |
% |
|
0.01 |
% |
|
0.02 |
% |
|
0.02 |
% |
Nonaccrual Loans to Total Loans |
|
|
0.23 |
|
|
0.02 |
|
|
0.01 |
|
|
0.02 |
|
|
0.02 |
|
Nonaccrual Loans and Loans Past Due 90 Days and Still Accruing to Total Loans |
|
|
0.23 |
|
|
0.02 |
|
|
0.01 |
|
|
0.02 |
|
|
0.02 |
|
Foreclosed Assets |
|
$ |
434 |
|
$ |
— |
|
$ |
20 |
|
$ |
— |
|
$ |
— |
|
Nonperforming Assets (1) |
|
|
8,812 |
|
|
678 |
|
|
269 |
|
|
919 |
|
|
749 |
|
Nonperforming Assets to Total Assets (1) |
|
|
0.19 |
% |
|
0.01 |
% |
|
0.01 |
% |
|
0.02 |
% |
|
0.02 |
% |
Net Loan Charge-Offs (Annualized) to Average Loans |
|
|
0.10 |
|
|
0.00 |
|
|
0.00 |
|
|
0.01 |
|
|
0.01 |
|
Watchlist Risk Rating Loans |
|
$ |
31,991 |
|
$ |
30,436 |
|
$ |
21,624 |
|
$ |
26,485 |
|
$ |
26,877 |
|
Substandard Risk Rating Loans |
|
|
31,637 |
|
|
33,908 |
|
|
33,829 |
|
|
35,858 |
|
|
35,621 |
|
(1) |
Nonperforming assets are defined as nonaccrual loans plus 90 days past due and still accruing plus foreclosed assets. |
Bridgewater Bancshares, Inc. and Subsidiaries Non-GAAP Financial Measures (dollars in thousands) (unaudited) |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||||||||||||
|
|
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
September 30, |
September 30, |
||||||||||||||||||||
(dollars in thousands) |
|
2024 |
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2024 |
|
2023 |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Pre-Provision Net Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Noninterest Income |
|
$ |
1,522 |
|
$ |
1,763 |
|
$ |
1,550 |
|
$ |
1,409 |
|
$ |
1,726 |
|
$ |
4,835 |
|
$ |
5,084 |
|
||||||
Less: (Gain) Loss on Sales of Securities |
|
|
28 |
|
|
(320 |
) |
|
(93 |
) |
|
27 |
|
|
— |
|
|
(385 |
) |
|
6 |
|
||||||
Less: FHLB Advance Prepayment Income |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(493 |
) |
|
— |
|
|
(792 |
) |
||||||
Total Operating Noninterest Income |
|
|
1,550 |
|
|
1,443 |
|
|
1,457 |
|
|
1,436 |
|
|
1,233 |
|
|
4,450 |
|
|
4,298 |
|
||||||
Plus: Net Interest Income |
|
|
25,599 |
|
|
24,996 |
|
|
24,631 |
|
|
25,314 |
|
|
25,421 |
|
|
75,226 |
|
|
79,860 |
|
||||||
Net Operating Revenue |
|
$ |
27,149 |
|
$ |
26,439 |
|
$ |
26,088 |
|
$ |
26,750 |
|
$ |
26,654 |
|
$ |
79,676 |
|
$ |
84,158 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Noninterest Expense |
|
$ |
15,760 |
|
$ |
15,539 |
|
$ |
15,189 |
|
$ |
15,740 |
|
$ |
15,237 |
|
$ |
46,488 |
|
$ |
43,580 |
|
||||||
Total Operating Noninterest Expense |
|
$ |
15,760 |
|
$ |
15,539 |
|
$ |
15,189 |
|
$ |
15,740 |
|
$ |
15,237 |
|
$ |
46,488 |
|
$ |
43,580 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Pre-Provision Net Revenue |
|
$ |
11,389 |
|
$ |
10,900 |
|
$ |
10,899 |
|
$ |
11,010 |
|
$ |
11,417 |
|
$ |
33,188 |
|
$ |
40,578 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Non-Operating Revenue Adjustments |
|
|
(28 |
) |
|
320 |
|
|
93 |
|
|
(27 |
) |
|
493 |
|
|
385 |
|
|
786 |
|
||||||
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Provision (Recovery of) for Credit Losses |
|
|
— |
|
|
600 |
|
|
750 |
|
|
(250 |
) |
|
(600 |
) |
|
1,350 |
|
|
75 |
|
||||||
Provision for Income Taxes |
|
|
2,686 |
|
|
2,505 |
|
|
2,411 |
|
|
2,360 |
|
|
2,881 |
|
|
7,602 |
|
|
10,202 |
|
||||||
Net Income |
|
$ |
8,675 |
|
$ |
8,115 |
|
$ |
7,831 |
|
$ |
8,873 |
|
$ |
9,629 |
|
$ |
24,621 |
|
$ |
31,087 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Average Assets |
|
$ |
4,703,804 |
|
$ |
4,646,517 |
|
$ |
4,592,838 |
|
$ |
4,567,446 |
|
$ |
4,504,937 |
|
$ |
4,647,925 |
|
$ |
4,464,976 |
|
||||||
Pre-Provision Net Revenue Return on Average Assets |
|
|
0.96 |
% |
|
0.94 |
% |
|
0.95 |
% |
|
0.96 |
% |
|
1.01 |
% |
|
0.95 |
% |
|
1.22 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Core Net Interest Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net Interest Income (Tax-equivalent Basis) |
|
$ |
25,905 |
|
$ |
25,288 |
|
$ |
24,992 |
|
$ |
25,683 |
|
$ |
25,822 |
|
$ |
76,185 |
|
$ |
81,049 |
|
||||||
Less: Loan Fees |
|
|
(968 |
) |
|
(767 |
) |
|
(608 |
) |
|
(751 |
) |
|
(914 |
) |
|
(2,342 |
) |
|
(2,853 |
) |
||||||
Core Net Interest Income |
|
$ |
24,937 |
|
$ |
24,521 |
|
$ |
24,384 |
|
$ |
24,932 |
|
$ |
24,908 |
|
$ |
73,843 |
|
$ |
78,196 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Average Interest Earning Assets |
|
$ |
4,595,521 |
|
$ |
4,545,920 |
|
$ |
4,492,756 |
|
$ |
4,480,428 |
|
$ |
4,416,424 |
|
$ |
4,544,932 |
|
$ |
4,378,733 |
|
||||||
Core Net Interest Margin |
|
|
2.16 |
% |
|
2.17 |
% |
|
2.18 |
% |
|
2.21 |
% |
|
2.24 |
% |
|
2.17 |
% |
|
2.39 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Efficiency Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Noninterest Expense |
|
$ |
15,760 |
|
$ |
15,539 |
|
$ |
15,189 |
|
$ |
15,740 |
|
$ |
15,237 |
|
$ |
46,488 |
|
$ |
43,580 |
|
||||||
Less: Amortization of Intangible Assets |
|
|
(9 |
) |
|
(8 |
) |
|
(9 |
) |
|
(9 |
) |
|
(9 |
) |
|
(26 |
) |
|
(91 |
) |
||||||
Adjusted Noninterest Expense |
|
$ |
15,751 |
|
$ |
15,531 |
|
$ |
15,180 |
|
$ |
15,731 |
|
$ |
15,228 |
|
$ |
46,462 |
|
$ |
43,489 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net Interest Income |
|
$ |
25,599 |
|
$ |
24,996 |
|
$ |
24,631 |
|
$ |
25,314 |
|
$ |
25,421 |
|
$ |
75,226 |
|
$ |
79,860 |
|
||||||
Noninterest Income |
|
|
1,522 |
|
|
1,763 |
|
|
1,550 |
|
|
1,409 |
|
|
1,726 |
|
|
4,835 |
|
|
5,084 |
|
||||||
Less: Gain (Loss) on Sales of Securities |
|
|
28 |
|
|
(320 |
) |
|
(93 |
) |
|
27 |
|
|
— |
|
|
(385 |
) |
|
6 |
|
||||||
Adjusted Operating Revenue |
|
$ |
27,149 |
|
$ |
26,439 |
|
$ |
26,088 |
|
$ |
26,750 |
|
$ |
27,147 |
|
$ |
79,676 |
|
$ |
84,950 |
|
||||||
Efficiency Ratio |
|
|
58.0 |
% |
|
58.7 |
% |
|
58.2 |
% |
|
58.8 |
% |
|
56.1 |
% |
|
58.3 |
% |
|
51.2 |
% |
||||||
Bridgewater Bancshares, Inc. and Subsidiaries Non-GAAP Financial Measures (dollars in thousands) (unaudited) |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
For the Three Months Ended |
|
For the Nine Months Ended |
||||||||||||||||||||||||
|
|
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
|
September 30, |
|
September 30, |
||||||||||||||||||
(dollars in thousands) |
|
2024 |
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
|
2024 |
|
2023 |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Tangible Common Equity and Tangible Common Equity/Tangible Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Shareholders' Equity |
|
$ |
452,200 |
|
$ |
439,241 |
|
$ |
433,611 |
|
$ |
425,515 |
|
$ |
415,960 |
|
|
|
|
|
||||||||
Less: Preferred Stock |
|
|
(66,514 |
) |
|
(66,514 |
) |
|
(66,514 |
) |
|
(66,514 |
) |
|
(66,514 |
) |
|
|
|
|
||||||||
Total Common Shareholders' Equity |
|
|
385,686 |
|
|
372,727 |
|
|
367,097 |
|
|
359,001 |
|
|
349,446 |
|
|
|
|
|
||||||||
Less: Intangible Assets |
|
|
(2,789 |
) |
|
(2,797 |
) |
|
(2,806 |
) |
|
(2,814 |
) |
|
(2,823 |
) |
|
|
|
|
||||||||
Tangible Common Equity |
|
$ |
382,897 |
|
$ |
369,930 |
|
$ |
364,291 |
|
$ |
356,187 |
|
$ |
346,623 |
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Assets |
|
$ |
4,691,517 |
|
$ |
4,687,035 |
|
$ |
4,723,109 |
|
$ |
4,611,990 |
|
$ |
4,557,070 |
|
|
|
|
|
||||||||
Less: Intangible Assets |
|
|
(2,789 |
) |
|
(2,797 |
) |
|
(2,806 |
) |
|
(2,814 |
) |
|
(2,823 |
) |
|
|
|
|
||||||||
Tangible Assets |
|
$ |
4,688,728 |
|
$ |
4,684,238 |
|
$ |
4,720,303 |
|
$ |
4,609,176 |
|
$ |
4,554,247 |
|
|
|
|
|
||||||||
Tangible Common Equity/Tangible Assets |
|
|
8.17 |
% |
|
7.90 |
% |
|
7.72 |
% |
|
7.73 |
% |
|
7.61 |
% |
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Tangible Book Value Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Book Value Per Common Share |
|
$ |
14.06 |
|
$ |
13.63 |
|
$ |
13.30 |
|
$ |
12.94 |
|
$ |
12.47 |
|
|
|
|
|
||||||||
Less: Effects of Intangible Assets |
|
|
(0.10 |
) |
|
(0.10 |
) |
|
(0.10 |
) |
|
(0.10 |
) |
|
(0.10 |
) |
|
|
|
|
||||||||
Tangible Book Value Per Common Share |
|
$ |
13.96 |
|
$ |
13.53 |
|
$ |
13.20 |
|
$ |
12.84 |
|
$ |
12.37 |
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Return on Average Tangible Common Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net Income Available to Common Shareholders |
|
$ |
7,662 |
|
$ |
7,101 |
|
$ |
6,818 |
|
$ |
7,859 |
|
$ |
8,616 |
|
$ |
21,581 |
|
$ |
28,047 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Average Shareholders' Equity |
|
$ |
443,077 |
|
$ |
435,585 |
|
$ |
428,248 |
|
$ |
417,789 |
|
$ |
414,047 |
|
$ |
435,664 |
|
$ |
408,014 |
|
||||||
Less: Average Preferred Stock |
|
|
(66,514 |
) |
|
(66,514 |
) |
|
(66,514 |
) |
|
(66,514 |
) |
|
(66,514 |
) |
|
(66,514 |
) |
|
(66,514 |
) |
||||||
Average Common Equity |
|
|
376,563 |
|
|
369,071 |
|
|
361,734 |
|
|
351,275 |
|
|
347,533 |
|
|
369,150 |
|
|
341,500 |
|
||||||
Less: Effects of Average Intangible Assets |
|
|
(2,794 |
) |
|
(2,802 |
) |
|
(2,811 |
) |
|
(2,819 |
) |
|
(2,828 |
) |
|
(2,802 |
) |
|
(2,856 |
) |
||||||
Average Tangible Common Equity |
|
$ |
373,769 |
|
$ |
366,269 |
|
$ |
358,923 |
|
$ |
348,456 |
|
$ |
344,705 |
|
$ |
366,348 |
|
$ |
338,644 |
|
||||||
Return on Average Tangible Common Equity |
|
|
8.16 |
% |
|
7.80 |
% |
|
7.64 |
% |
|
8.95 |
% |
|
9.92 |
% |
|
7.87 |
% |
|
11.07 |
% |
||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241023106462/en/
Media Contact:
Jessica Stejskal | SVP Marketing
Jessica.Stejskal@bwbmn.com | 952.893.6860
Investor Contact:
Justin Horstman | VP Investor Relations
Justin.Horstman@bwbmn.com | 952.542.5169
Source: Bridgewater Bancshares, Inc.
FAQ
What was Bridgewater Bancshares (BWB) earnings per share in Q3 2024?
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