Bridgewater Bancshares, Inc. Announces Third Quarter 2024 Net Income of $8.7 Million, $0.27 Diluted Earnings Per Common Share

Third Quarter 2024 Highlights

  • Tangible book value per share(1) of $13.96 for the third quarter of 2024, an increase of $0.43, or 12.8% annualized, compared to $13.53 for the second quarter of 2024.
  • Pre-provision net revenue(1) increased $489,000, or 4.5%, from the second quarter of 2024.
  • Net interest income increased $603,000, or 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, or 14.4% annualized, from the second quarter of 2024. Total deposits decreased by $60.3 million from the second quarter of 2024, primarily driven by a decrease in brokered deposits of $131.3 million.
  • Gross loans decreased $114.8 million from the second quarter of 2024, primarily driven by elevated levels of loan payoffs.
  • Loan-to-deposit ratio of 98.3%, compared to 99.8% at June 30, 2024.
  • Efficiency ratio(1) of 58.0%, down from 58.7% 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 to 1.37% 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 to 0.00% 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 to 0.01% 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 $250,000.

Bridgewater Bancshares, Inc. (Nasdaq: BWB) (the Company), the parent company of Bridgewater Bank (the Bank), today announced net income of $8.7 million for the third quarter of 2024, compared to $8.1 million for the second quarter of 2024, and $9.6 million for the third quarter of 2023. Earnings per diluted common share were $0.27 for the third quarter of 2024, compared to $0.26 for the second quarter of 2024, and $0.30 for the third quarter of 2023.

“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 the Twin Cities, such as declining vacancy rates.

“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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Three Months Ended

 

 

As of and for the Nine Months Ended

 

 

 

September 30,

 

June 30,

 

September 30,

 

 

September 30,

 

September 30,

 

 

 

2024

 

2024

 

2023

 

 

2024

 

2023

 

Per Common Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Share

 

$

0.28

 

$

0.26

 

$

0.31

 

 

$

0.79

 

$

1.01

 

Diluted Earnings Per Share

 

 

0.27

 

 

0.26

 

 

0.30

 

 

 

0.77

 

 

0.99

 

Book Value Per Share

 

 

14.06

 

 

13.63

 

 

12.47

 

 

 

14.06

 

 

12.47

 

Tangible Book Value Per Share (1)

 

 

13.96

 

 

13.53

 

 

12.37

 

 

 

13.96

 

 

12.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Assets (2)

 

 

0.73

%

 

0.70

%

 

0.85

%

 

 

0.71

%

 

0.93

%

Pre-Provision Net Revenue Return on Average Assets (1)(2)

 

 

0.96

 

 

0.94

 

 

1.01

 

 

 

0.95

 

 

1.22

 

Return on Average Shareholders' Equity (2)

 

 

7.79

 

 

7.49

 

 

9.23

 

 

 

7.55

 

 

10.19

 

Return on Average Tangible Common Equity (1)(2)

 

 

8.16

 

 

7.80

 

 

9.92

 

 

 

7.87

 

 

11.07

 

Net Interest Margin (3)

 

 

2.24

 

 

2.24

 

 

2.32

 

 

 

2.24

 

 

2.47

 

Core Net Interest Margin (1)(3)

 

 

2.16

 

 

2.17

 

 

2.24

 

 

 

2.17

 

 

2.39

 

Cost of Total Deposits

 

 

3.58

 

 

3.46

 

 

2.99

 

 

 

3.45

 

 

2.57

 

Cost of Funds

 

 

3.54

 

 

3.49

 

 

3.10

 

 

 

3.46

 

 

2.81

 

Efficiency Ratio (1)

 

 

58.0

 

 

58.7

 

 

56.1

 

 

 

58.3

 

 

51.2

 

Noninterest Expense to Average Assets (2)

 

 

1.33

 

 

1.35

 

 

1.34

 

 

 

1.34

 

 

1.30

 

Tangible Common Equity to Tangible Assets (1)

 

 

8.17

 

 

7.90

 

 

7.61

 

 

 

8.17

 

 

7.61

 

Common Equity Tier 1 Risk-based Capital Ratio (Consolidated) (4)

 

 

9.79

 

 

9.41

 

 

9.07

 

 

 

9.79

 

 

9.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet and Asset Quality (dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

4,691,517

 

$

4,687,035

 

$

4,557,070

 

 

$

4,691,517

 

$

4,557,070

 

Total Loans, Gross

 

 

3,685,590

 

 

3,800,385

 

 

3,722,271

 

 

 

3,685,590

 

 

3,722,271

 

Deposits

 

 

3,747,442

 

 

3,807,712

 

 

3,675,509

 

 

 

3,747,442

 

 

3,675,509

 

Loan to Deposit Ratio

 

 

98.3

%

 

99.8

%

 

101.3

%

 

 

98.3

%

 

101.3

%

Net Loan Charge-Offs to Average Loans (2)

 

 

0.10

 

 

0.00

 

 

0.01

 

 

 

0.03

 

 

0.00

 

Nonperforming Assets to Total Assets (5)

 

 

0.19

 

 

0.01

 

 

0.02

 

 

 

0.19

 

 

0.02

 

Allowance for Credit Losses to Total Loans

 

 

1.38

 

 

1.37

 

 

1.36

 

 

 

1.38

 

 

1.36

 

(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 21%.

(4)

Preliminary data. Current period subject to change prior to filings with applicable regulatory agencies.

(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 2.24%, stable with the second quarter of 2024, and an eight basis point decline from 2.32% in the third quarter of 2023. Core net interest margin (on a fully tax-equivalent basis), a non-GAAP financial measure which excludes the impact of loan fees, was 2.16% for the third quarter of 2024, a one basis point decline from 2.17% in the second quarter of 2024, and an eight basis point decline from 2.24% in the third quarter of 2023.

  • 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 $25.6 million for the third quarter of 2024, an increase of $603,000 from $25.0 million in the second quarter of 2024, and an increase of $178,000 from $25.4 million in the third quarter of 2023.

  • 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 $63.0 million for the third quarter of 2024, an increase of $2.1 million from $60.9 million in the second quarter of 2024, and an increase of $6.2 million from $56.8 million in the third quarter of 2023.

  • The yield on interest earning assets (on a fully tax-equivalent basis) was 5.48% in the third quarter of 2024, compared to 5.41% in the second quarter of 2024 and 5.14% 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 than 5.50% in the second quarter of 2024, and 31 basis points higher than 5.26% 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

September 30, 2024

 

 

June 30, 2024

 

 

March 31, 2024

 

 

December 31, 2023

 

 

September 30, 2023

 

 

Interest

 

5.47

%

 

5.42

%

 

5.31

%

 

5.25

%

 

5.16

%

 

Fees

 

0.10

 

 

0.08

 

 

0.07

 

 

0.08

 

 

0.10

 

 

Yield on Loans

 

5.57

%

 

5.50

%

 

5.38

%

 

5.33

%

 

5.26

%

 

Interest expense was $37.4 million for the third quarter of 2024, an increase of $1.5 million from $35.9 million in the second quarter of 2024, and an increase of $6.0 million from $31.4 million in the third quarter of 2023.

  • The cost of interest bearing liabilities was 4.27% in the third quarter of 2024, compared to 4.19% in the second quarter of 2024 and 3.81% 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 $34.2 million for the third quarter of 2024, an increase of $2.6 million from $31.6 million in the second quarter of 2024, and an increase of $7.0 million from $27.2 million in the third quarter of 2023.

  • The cost of total deposits was 3.58% in the third quarter of 2024, compared to 3.46% in the second quarter of 2024 and 2.99% 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 $-0- for the third quarter of 2024, compared to $600,000 for the second quarter of 2024 and $-0- for the third quarter of 2023.

  • 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 to 1.37% at June 30, 2024 and 1.36% at September 30, 2023.

The provision for credit losses for off-balance sheet credit exposures was $-0- for the third quarter of 2024, compared to $-0- for the second quarter of 2024, and a negative provision of $600,000 for the third quarter of 2023.

  • 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 $1.5 million for the third quarter of 2024, a decrease of $241,000 from $1.8 million for the second quarter of 2024, and a decrease of $204,000 from $1.7 million for the third quarter of 2023.

  • 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 of FHLB prepayment income recognized in the previous year which did not reoccur, offset partially by higher letter of credit fees, an increase in the cash surrender value of bank-owned life insurance and an increase in other income.

Noninterest Expense

Noninterest expense was $15.8 million for the third quarter of 2024, an increase of $221,000 from $15.5 million for the second quarter of 2024 and an increase of $523,000 from $15.2 million for the third quarter of 2023.

  • 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 to 58.7% for the second quarter of 2024, and 56.1% 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 23.6% for both the second and third quarter of 2024, compared to 23.0% for the third quarter of 2023.

Balance Sheet

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

September 30, 2024

 

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

September 30, 2023

 

Commercial

 

$

493,403

 

 

$

518,762

 

 

$

483,069

 

 

$

464,061

 

 

$

459,854

 

 

Construction and Land Development

 

 

118,596

 

 

 

134,096

 

 

 

200,970

 

 

 

232,804

 

 

 

294,818

 

 

1 - 4 Family Construction

 

 

45,822

 

 

 

60,551

 

 

 

65,606

 

 

 

65,087

 

 

 

64,463

 

 

Real Estate Mortgage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 - 4 Family Mortgage

 

 

421,179

 

 

 

416,944

 

 

 

417,773

 

 

 

402,396

 

 

 

404,716

 

 

Multifamily

 

 

1,379,814

 

 

 

1,404,835

 

 

 

1,389,345

 

 

 

1,388,541

 

 

 

1,378,669

 

 

CRE Owner Occupied

 

 

182,239

 

 

 

185,988

 

 

 

182,589

 

 

 

175,783

 

 

 

159,485

 

 

CRE Nonowner Occupied

 

 

1,032,142

 

 

 

1,070,050

 

 

 

1,035,702

 

 

 

987,306

 

 

 

951,263

 

 

Total Real Estate Mortgage Loans

 

 

3,015,374

 

 

 

3,077,817

 

 

 

3,025,409

 

 

 

2,954,026

 

 

 

2,894,133

 

 

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

)

 

 

(51,949

)

 

 

(51,347

)

 

 

(50,494

)

 

 

(50,585

)

 

Net Deferred Loan Fees

 

 

(5,705

)

 

 

(6,214

)

 

 

(6,356

)

 

 

(6,573

)

 

 

(7,222

)

 

Total Loans, Net

 

$

3,628,867

 

 

$

3,742,222

 

 

$

3,726,502

 

 

$

3,667,215

 

 

$

3,664,464

 

 

Total gross loans at September 30, 2024 were $3.69 billion, a decrease of $114.8 million, or 3.0%, over total gross loans of $3.80 billion at June 30, 2024, and a decrease of $36.7 million, or 1.0%, over total gross loans of $3.72 billion at September 30, 2023.

  • 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 $3.75 billion, a decrease of $60.3 million, or 1.6%, over total deposits of $3.81 billion at June 30, 2024, and an increase of $71.9 million, or 2.0%, over total deposits of $3.68 billion at September 30, 2023.

  • Core deposits, defined as total deposits excluding brokered deposits and time deposits greater than $250,000, increased $93.6 million, or 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, or 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, or 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 to 22.5% of total deposits as of June 30, 2024.

Liquidity

Total on- and off-balance sheet liquidity was $2.29 billion as of September 30, 2024, compared to $2.22 billion at June 30, 2024 and $2.18 billion at September 30, 2023.

 

 

 

 

 

 

 

 

 

 

 

 

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 to 0.00% for the second quarter of 2024, and 0.01% 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, or 0.19% of total assets, compared to $678,000, or 0.01%, of total assets at June 30, 2024, and $749,000, or 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, compared to $30.4 million at June 30, 2024, and $26.9 million at September 30, 2023.
  • Loans that warranted a substandard risk rating at September 30, 2024 totaled $31.6 million, compared to $33.9 million at June 30, 2024, and $35.6 million at September 30, 2023.

Capital

Total shareholders’ equity at September 30, 2024 was $452.2 million, an increase of $13.0 million, or 3.0%, compared to total shareholders’ equity of $439.2 million at June 30, 2024, and an increase of $36.2 million, or 8.7%, over total shareholders’ equity of $416.0 million at September 30, 2023.

  • 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 to 9.41% at June 30, 2024, and 9.07% 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 to 7.90% at June 30, 2024, and 7.61% at September 30, 2023.

Tangible book value per share, a non-GAAP financial measure, was $13.96 as of September 30, 2024, an increase of 12.8% annualized from $13.53 as of June 30, 2024, and an increase of 12.8% from $12.37 as of September 30, 2023.

  • 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 remaining under its current share repurchase authorization.

Today, the Company also announced that its Board of Directors has declared a quarterly cash dividend on its 5.875% Non-Cumulative Perpetual Preferred Stock, Series A (Series A Preferred Stock). The quarterly cash dividend of $36.72 per share, equivalent to $0.3672 per depositary share, each representing a 1/100th interest in a share of the Series A Preferred Stock (Nasdaq: BWBBP), is payable on December 2, 2024 to shareholders of record of the Series A Preferred Stock at the close of business on November 15, 2024.

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 St. Louis Park, Minnesota-based financial holding company. Bridgewater's banking subsidiary, Bridgewater Bank, is a premier, full-service Twin Cities bank dedicated to serving the diverse needs of commercial real estate investors, entrepreneurs, business clients and successful individuals. By pairing a range of deposit, lending, and treasury management solutions with a responsive service model, Bridgewater has seen continuous growth and profitability. With total assets of $4.7 billion and seven branches as of September 30, 2024, Bridgewater is considered one of the largest locally led banks in the State of Minnesota, and has received numerous awards for its growth, banking services, and esteemed corporate culture.

Use of Non-GAAP financial measures

In addition to the results presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP), the Company routinely supplements its evaluation with an analysis of certain non-GAAP financial measures. The Company believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors to help them understand the Company’s operating performance and trends, and to facilitate comparisons with the performance of peers. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of non-GAAP disclosures used in this earnings release to the comparable GAAP measures are provided in the accompanying tables.

Forward-Looking Statements

This earnings release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, identified by words such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized”, “target” and “outlook”, or the negative version of those words or other comparable words of a future or forward-looking nature.

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 Middle East and the Russian invasion of Ukraine; potential impairment to the goodwill the Company recorded in connection with acquisitions; risks associated with our ongoing acquisition of First Minnetonka City Bank, including the possibility that the merger may be more difficult or expensive to accomplish than anticipated, diversion of management's attention from daily operations and the effect of the proposed merger on the Company’s customer and employee relationships and operating results; changes to U.S. or state tax laws, regulations and guidance; potential changes in federal policy and at regulatory agencies as a result of the upcoming 2024 presidential election; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission.

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 21%.

(4)

Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000.

(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- $0.01 par value; Authorized 10,000,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Stock - Issued and Outstanding 27,600 Series A shares ($2,500 liquidation preference) at September 30, 2024 (unaudited), June 30, 2024 (unaudited), March 31, 2024 (unaudited), December 31, 2023, and September 30, 2023 (unaudited)

 

 

66,514

 

 

 

66,514

 

 

 

66,514

 

 

 

66,514

 

 

 

66,514

 

Common Stock- $0.01 par value; Authorized 75,000,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 21%.

(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

%

 

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