Fourth Quarter 2024 Highlights
- Net income of $8.2 million, or $0.26 per diluted common share;
adjusted net income of $8.6 million, or $0.27 per diluted common
share.(1)
- Completed the acquisition of First Minnetonka City Bank (FMCB)
in just 107 days following announcement.
- Net interest income increased $1.4 million, or 5.3%, from the
third quarter of 2024.
- Net interest margin (on a fully tax-equivalent basis) of 2.32%
for the fourth quarter of 2024, an increase of eight basis points
from the third quarter of 2024.
- Core deposits(2) increased by $428.2 million, or 63.6%
annualized, from the third quarter of 2024; core deposits excluding
FMCB increased by $210.9 million, or 31.3% annualized.
- Gross loans increased by $182.9 million, or 19.7% annualized,
from the third quarter of 2024; gross loans excluding FMCB
increased by $65.8 million, or 7.1% annualized.
- Annualized net loan charge-offs as a percentage of average
loans of 0.03%, compared to 0.10% for the third quarter of
2024.
Full Year 2024 Highlights
- Net income of $32.8 million, or $1.03 per diluted common share;
adjusted net income of $33.4 million, or $1.05 per diluted common
share.(1)
- Total deposits increased by $376.8 million, or 10.2%, in 2024;
core deposits(2) increased by $559.4 million, or 22.0%.
- Gross loans increased by $144.2 million, or 3.9%, in 2024.
- Loan-to-deposit ratio of 94.7%, down from 100.4% at December
31, 2023.
- Net loan charge-offs as a percentage of average loans were
0.03% for the year ended December 31, 2024, compared to 0.01% for
the year ended December 31, 2023.
- Nonperforming assets to total assets of 0.01% for the year
ended December 31, 2024, compared to 0.02% at December 31,
2023.
- Tangible book value per share(1) of $13.49 at December 31,
2024, an increase of 5.1%, from December 31, 2023.
(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 $8.2 million for the fourth quarter of 2024, compared to
$8.7 million for the third quarter of 2024, and $8.9 million for
the fourth quarter of 2023. Earnings per diluted common share were
$0.26 for the fourth quarter of 2024, compared to $0.27 for the
third quarter of 2024, and $0.28 for the fourth quarter of 2023.
Adjusted net income was $8.6 million for the fourth quarter of
2024, compared to $8.8 million for the third quarter of 2024, and
$8.9 million for the fourth quarter of 2023. Adjusted earnings per
diluted common share were $0.27 for the fourth quarter of 2024,
compared to $0.28 for the third quarter of 2024, and $0.28 for the
fourth quarter of 2023.
“Bridgewater finished the year with positive momentum as the
fourth quarter saw robust balance sheet growth, net interest margin
expansion, superb asset quality, and the closing of our acquisition
of First Minnetonka City Bank,” said Chairman and Chief Executive
Officer, Jerry Baack. “Core deposit growth was very strong and loan
balances rebounded nicely as loan demand increased later in the
year. We were also pleased to see margin expansion during the
quarter as our balance sheet was well-positioned for recent Fed
rate cuts.
“In December, we welcomed new team members and clients as our
acquisition of First Minnetonka City Bank was completed just 107
days after it was announced last August. We believe this
acquisition, coupled with the strong core deposit growth and
increased liquidity generated in 2024, will allow us to be more
offensive-minded and return to more normalized levels of profitable
growth in 2025.”
Key Financial Measures
As of and for the Three Months
Ended
As of and for the Year
Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2024
2024
2023
2024
2023
Per Common Share Data
Basic Earnings Per Share
$
0.26
$
0.28
$
0.28
$
1.05
$
1.29
Diluted Earnings Per Share
0.26
0.27
0.28
1.03
1.27
Adjusted Diluted Earnings Per Share
(1)
0.27
0.28
0.28
1.05
1.27
Book Value Per Share
14.21
14.06
12.94
14.21
12.94
Tangible Book Value Per Share (1)
13.49
13.96
12.84
13.49
12.84
Financial Ratios
Return on Average Assets (2)
0.68
%
0.73
%
0.77
%
0.70
%
0.89
%
Pre-Provision Net Revenue Return on
Average Assets (1)(2)
1.05
0.96
0.96
0.98
1.15
Return on Average Shareholders' Equity
(2)
7.16
7.79
8.43
7.45
9.73
Return on Average Tangible Common Equity
(1)(2)
7.43
8.16
8.95
7.75
10.53
Net Interest Margin (3)
2.32
2.24
2.27
2.26
2.42
Core Net Interest Margin (1)(3)
2.25
2.16
2.21
2.19
2.34
Cost of Total Deposits
3.40
3.58
3.19
3.44
2.73
Cost of Funds
3.38
3.54
3.23
3.44
2.92
Efficiency Ratio (1)
56.8
58.0
58.8
57.9
53.0
Noninterest Expense to Average Assets
(2)
1.40
1.33
1.37
1.35
1.32
Tangible Common Equity to Tangible Assets
(1)
7.36
8.17
7.73
7.36
7.73
Common Equity Tier 1 Risk-based Capital
Ratio (Consolidated) (4)
9.08
9.79
9.16
9.08
9.16
Adjusted Financial Ratios (1)
Adjusted Return on Average Assets (2)
0.71
%
0.75
%
0.77
%
0.71
%
0.89
%
Adjusted Pre-Provision Net Revenue Return
on Average Assets (2)
1.09
0.98
0.96
0.99
1.15
Adjusted Return on Average Shareholders'
Equity (2)
7.49
7.94
8.43
7.57
9.73
Adjusted Return on Average Tangible Common
Equity (2)
7.82
8.34
8.95
7.90
10.53
Adjusted Efficiency Ratio
55.2
57.2
58.8
57.3
53.0
Adjusted Noninterest Expense to Average
Assets (2)
1.36
1.31
1.37
1.34
1.32
Balance Sheet and Asset Quality
(dollars in thousands)
Total Assets
$
5,066,242
$
4,691,517
$
4,611,990
$
5,066,242
$
4,611,990
Total Loans, Gross
3,868,514
3,685,590
3,724,282
3,868,514
3,724,282
Deposits
4,086,767
3,747,442
3,709,948
4,086,767
3,709,948
Loan to Deposit Ratio
94.7
%
98.3
%
100.4
%
94.7
%
100.4
%
Net Loan Charge-Offs to Average Loans
(2)
0.03
0.10
0.01
0.03
0.01
Nonperforming Assets to Total Assets
(5)
0.01
0.19
0.02
0.01
0.02
Allowance for Credit Losses to Total
Loans
1.35
1.38
1.36
1.35
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
fourth quarter of 2024 was 2.32%, an eight basis point increase
from 2.24% in the third quarter of 2024, and a five basis point
increase from 2.27% in the fourth 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 2.25%
for the fourth quarter of 2024, a nine basis point increase from
2.16% in the third quarter of 2024, and a four basis point increase
from 2.21% in the fourth quarter of 2023.
- Net interest margin expanded to 2.32% in the fourth quarter of
2024 primarily due to lower costs of deposits and increased
balances in the securities and loan portfolios.
- Excluding the stub period impact of the acquisition of FMCB
during the quarter, total net interest margin (on a tax-equivalent
basis) for the fourth quarter of 2024 was 2.30%.
- The year-over-year expansion in margin was primarily due to
increased balances in the securities and loan portfolios at higher
yields, offset partially by higher deposit costs.
Net interest income was $27.0 million for the fourth quarter of
2024, an increase of $1.4 million from $25.6 million in the third
quarter of 2024, and an increase of $1.7 million from $25.3 million
in the fourth quarter of 2023.
- The linked-quarter increase in net interest income was
primarily due to decreased rates paid on deposits.
- The year-over year increase in net interest income was
primarily due to 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 $63.3 million for the fourth quarter of
2024, an increase of $297,000 from $63.0 million in the third
quarter of 2024, and an increase of $4.8 million from $58.6 million
in the fourth quarter of 2023.
- The yield on interest earning assets (on a fully tax-equivalent
basis) was 5.40% in the fourth quarter of 2024, compared to 5.48%
in the third quarter of 2024, and 5.22% in the fourth quarter of
2023.
- The linked-quarter decrease in the yield on interest earning
assets was primarily due to higher cash and securities balances at
lower yields and lower loan fees collected during the quarter.
- The year-over-year increase in the yield on interest earning
assets was primarily due to repricing of the securities and loan
portfolios in the higher interest rate environment.
- The aggregate loan yield decreased to 5.55% in the fourth
quarter of 2024, two basis points lower than 5.57% in the third
quarter of 2024, and 22 basis points higher than 5.33% in the
fourth quarter of 2023.
- Core loan yield remained stable at 5.47% in the fourth quarter
of 2024.
A summary of interest and fees recognized on loans for the
periods indicated is as follows:
Three Months Ended
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2024
Interest
5.47
%
5.47
%
5.42
%
5.31
%
5.25
%
Fees
0.08
0.10
0.08
0.07
0.08
Yield on Loans
5.55
%
5.57
%
5.50
%
5.38
%
5.33
%
Interest expense was $36.4 million for the fourth quarter of
2024, a decrease of $1.1 million from $37.4 million in the third
quarter of 2024, and an increase of $3.1 million from $33.2 million
in the fourth quarter of 2023.
- The cost of interest bearing liabilities was 4.06% in the
fourth quarter of 2024, compared to 4.27% in the third quarter of
2024, and 3.97% in the fourth quarter of 2023.
- The linked-quarter decrease in the cost of interest bearing
liabilities was primarily due to lower rates paid on deposits and a
decrease in brokered deposit balances.
- The year-over-year increase in the cost of interest bearing
liabilities was primarily due to the upward repricing of the
deposit portfolio in the higher rate environment, offset partially
by a decrease in brokered deposit balances.
Interest expense on deposits was $32.8 million for the fourth
quarter of 2024, a decrease of $1.4 million from $34.2 million in
the third quarter of 2024, and an increase of $3.4 million from
$29.4 million in the fourth quarter of 2023.
- The cost of total deposits was 3.40% in the fourth quarter of
2024, compared to 3.58% in the third quarter of 2024, and 3.19% in
the fourth quarter of 2023.
- The linked-quarter decrease in the cost of total deposits was
primarily due to interest rate cuts by the Federal Reserve and the
reduction of higher cost funding; brokered deposits decreased
during the quarter by $75.2 million, or 8.3%.
- The year-over-year increase in the cost of total deposits was
primarily due to the upward repricing of the deposit portfolio in
the higher interest rate environment.
Provision for Credit Losses
The provision for credit losses on loans was $1.5 million for
the fourth quarter of 2024, which included a $950,000 provision for
non-purchase credit deteriorated (PCD) loans acquired in the FMCB
transaction. The provision for credit losses on loans was $-0- for
both the third quarter of 2024 and the fourth quarter of 2023.
- The provision for credit losses on loans recorded in the fourth
quarter of 2024 was primarily attributable to the acquisition of
FMCB and growth in the loan portfolio.
- The allowance for credit losses on loans to total loans was
1.35% at December 31, 2024, compared to 1.38% at September 30,
2024, and 1.36% at December 31, 2023.
The provision for credit losses for off-balance sheet credit
exposures was $725,000 for the fourth quarter of 2024, compared to
$-0- for the third quarter of 2024, and a negative provision of
$250,000 for the fourth quarter of 2023.
- A provision was recorded during the fourth quarter of 2024 due
to an increase in the volume of newly originated loans with
unfunded commitments in the commercial and construction and land
development segments.
Noninterest Income
Noninterest income was $2.5 million for the fourth quarter of
2024, an increase of $1.0 million from $1.5 million for the third
quarter of 2024, and an increase of $1.1 million from $1.4 million
for the fourth quarter of 2023.
- The linked-quarter increase was primarily due to higher letter
of credit fees and swap fees. There was no material stub period
impact from the completion of the FMCB transaction in the fourth
quarter of 2024.
- The year-over-year increase was primarily due to higher letter
of credit fees and swap fees.
Noninterest Expense
Noninterest expense was $16.8 million for the fourth quarter of
2024, an increase of $1.1 million from $15.8 million for the third
quarter of 2024 and an increase of $1.1 million from $15.7 million
for the fourth quarter of 2023.
- The linked-quarter increase was primarily due to increases in
salaries and employee benefits and merger-related expenses.
- Noninterest expense for the fourth quarter of 2024 included
$488,000 of merger-related expenses, compared to $224,000 for the
third quarter of 2024.
- The stub period impact from the completion of the FMCB
transaction to noninterest expense, excluding merger-related
expenses, was $199,000 for the fourth quarter of 2024.
- The year-over-year increase was primarily attributable to
increases in salaries and employee benefits and merger-related
expenses, offset partially by a decrease in the FDIC insurance
assessment, which resulted from decreased brokered deposits and
moderated loan growth.
- The efficiency ratio, a non-GAAP financial measure, was 56.8%
for the fourth quarter of 2024, compared to 58.0% for the third
quarter of 2024, and 58.8% for the fourth quarter of 2023.
- The Company had 290 full-time equivalent employees at December
31, 2024, compared to 265 at September 30, 2024, and 255 at
December 31, 2023. The increase during the quarter was largely
driven by the addition of 25 new employees from the acquisition of
FMCB.
Income Taxes
The effective combined federal and state income tax rate was
22.0% for the fourth quarter of 2024, compared to 23.6% for the
third quarter of 2024, and 21.0% for the fourth quarter of
2023.
Balance Sheet
Loans
(dollars in thousands)
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
Commercial
$
497,662
$
493,403
$
518,762
$
483,069
$
464,061
Leases
44,291
—
—
—
—
Construction and Land Development
97,255
118,596
134,096
200,970
232,804
1 - 4 Family Construction
41,961
45,822
60,551
65,606
65,087
Real Estate Mortgage:
1 - 4 Family Mortgage
474,383
421,179
416,944
417,773
402,396
Multifamily
1,425,610
1,379,814
1,404,835
1,389,345
1,388,541
CRE Owner Occupied
191,248
182,239
185,988
182,589
175,783
CRE Nonowner Occupied
1,083,108
1,032,142
1,070,050
1,035,702
987,306
Total Real Estate Mortgage Loans
3,174,349
3,015,374
3,077,817
3,025,409
2,954,026
Consumer and Other
12,996
12,395
9,159
9,151
8,304
Total Loans, Gross
3,868,514
3,685,590
3,800,385
3,784,205
3,724,282
Allowance for Credit Losses on Loans
(52,277
)
(51,018
)
(51,949
)
(51,347
)
(50,494
)
Net Deferred Loan Fees
(6,801
)
(5,705
)
(6,214
)
(6,356
)
(6,573
)
Total Loans, Net
$
3,809,436
$
3,628,867
$
3,742,222
$
3,726,502
$
3,667,215
Total gross loans at December 31, 2024 were $3.87 billion, an
increase of $182.9 million, or 5.0%, over total gross loans of
$3.69 billion at September 30, 2024, and an increase of $144.2
million, or 3.9%, over total gross loans of $3.72 billion at
December 31, 2023.
- Total gross loan balances included $117.1 million of loans at
amortized cost acquired in the FMCB transaction.
- Excluding loans acquired in the FMCB transaction, total gross
loans were up 7.1% annualized from the third quarter of 2024. The
increase in the loan portfolio during the fourth quarter of 2024
was due to increased loan originations, partially offset by loan
payoffs.
Deposits
(dollars in thousands)
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
Noninterest Bearing Transaction
Deposits
$
800,763
$
713,309
$
705,175
$
698,432
$
756,964
Interest Bearing Transaction Deposits
862,242
805,756
752,568
783,736
692,801
Savings and Money Market Deposits
1,259,503
980,345
943,994
979,773
935,091
Time Deposits
338,506
347,080
373,713
352,510
300,651
Brokered Deposits
825,753
900,952
1,032,262
992,774
1,024,441
Total Deposits
$
4,086,767
$
3,747,442
$
3,807,712
$
3,807,225
$
3,709,948
Total deposits at December 31, 2024 were $4.09 billion, an
increase of $339.3 million, or 9.1%, over total deposits of $3.75
billion at September 30, 2024, and an increase of $376.8 million,
or 10.2%, over total deposits of $3.71 billion at December 31,
2023.
- Total deposit balances included $225.7 million of deposits
acquired in the FMCB transaction as of December 31, 2024.
- Core deposits, defined as total deposits excluding brokered
deposits and time deposits greater than $250,000, increased $428.2
million, or 63.6% annualized, from the third quarter of 2024; core
deposits, excluding deposits assumed in the FMCB transaction,
increased by $210.9 million, or 31.3% annualized. 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 $559.4 million, or 22.0%. 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 declined by $75.2 million, or 8.3%, in the
fourth quarter of 2024 and declined by $198.7 million, or 19.4%,
from December 31, 2023. While balances are down, we continue to use
as a supplemental funding source, as needed.
- Uninsured deposits were 27.7% of total deposits as of December
31, 2024, compared to 25.0% of total deposits as of September 30,
2024.
Liquidity
Total on- and off-balance sheet liquidity was $2.30 billion as
of December 31, 2024, compared to $2.29 billion at September 30,
2024, and $2.23 billion at December 31, 2023.
Primary Liquidity—On-Balance
Sheet
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
(dollars in thousands)
Cash and Cash Equivalents
$
188,884
$
167,869
$
97,237
$
105,784
$
96,594
Securities Available for Sale
768,247
664,715
601,057
633,282
604,104
Less: Pledged Securities
(289,903
)
(146,144
)
(169,095
)
(169,479
)
(170,727
)
Total Primary Liquidity
$
667,228
$
686,440
$
529,199
$
569,587
$
529,971
Ratio of Primary Liquidity to Total
Deposits
16.3
%
18.3
%
13.9
%
15.0
%
14.3
%
Secondary Liquidity—Off-Balance Sheet
Borrowing Capacity
Net Secured Borrowing Capacity with the
FHLB
$
483,245
$
509,223
$
451,171
$
446,801
$
498,736
Net Secured Borrowing Capacity with the
Federal Reserve Bank
925,798
867,955
1,015,873
1,006,010
979,448
Unsecured Borrowing Capacity with
Correspondent Lenders
200,000
200,000
200,000
200,000
200,000
Secured Borrowing Capacity with
Correspondent Lender
19,855
26,250
26,250
26,250
26,250
Total Secondary Liquidity
$
1,628,898
$
1,603,428
$
1,693,294
$
1,679,061
$
1,704,434
Total Primary and Secondary Liquidity
$
2,296,126
$
2,289,868
$
2,222,493
$
2,248,648
$
2,234,405
Ratio of Primary and Secondary Liquidity
to Total Deposits
56.2
%
61.1
%
58.4
%
59.1
%
60.2
%
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 0.03% for the fourth quarter of 2024, compared to 0.10% for
the third quarter of 2024, and 0.01% for the fourth quarter of
2023.
- At December 31, 2024, the Company’s nonperforming assets, which
include nonaccrual loans, loans past due 90 days and still
accruing, and foreclosed assets, were $301,000, or 0.01% of total
assets, compared to $8.8 million, or 0.19% of total assets, at
September 30, 2024, and $919,000, or 0.02% of total assets, at
December 31, 2023.
- Loans with potential weaknesses that warranted a special
mention/watchlist risk rating at December 31, 2024 totaled $46.6
million, compared to $32.0 million at September 30, 2024, and $26.5
million at December 31, 2023.
- Loans that warranted a substandard risk rating at December 31,
2024 totaled $21.8 million, compared to $31.6 million at September
30, 2024, and $35.9 million at December 31, 2023.
Capital
Total shareholders’ equity at December 31, 2024 was $457.9
million, an increase of $5.7 million, or 1.3%, compared to total
shareholders’ equity of $452.2 million at September 30, 2024, and
an increase of $32.4 million, or 7.6%, over total shareholders’
equity of $425.5 million at December 31, 2023.
- The linked-quarter increase was primarily due to net income
retained and an increase in unrealized gains in the derivatives
portfolio, offset partially by an increase in unrealized losses in
the securities portfolio and preferred stock dividends.
- The year-over-year increase was due to net income retained, a
decrease in unrealized losses in the securities portfolio, and an
increase in unrealized gains in the derivatives portfolio, offset
partially by preferred stock dividends and stock repurchases.
- The Common Equity Tier 1 Risk-Based Capital Ratio was 9.08% at
December 31, 2024, compared to 9.79% at September 30, 2024, and
9.16% at December 31, 2023.
- Tangible common equity as a percentage of tangible assets, a
non-GAAP financial measure, was 7.36% at December 31, 2024,
compared to 8.17% at September 30, 2024, and 7.73% at December 31,
2023.
Tangible book value per share, a non-GAAP financial measure, was
$13.49 as of December 31, 2024, a decrease of 3.4% from $13.96 as
of September 30, 2024, and an increase of 5.1% from $12.84 as of
December 31, 2023.
The Company did not repurchase any shares of its common stock
during the fourth quarter of 2024.
- The Company had $15.3 million remaining under its current share
repurchase authorization at December 31, 2024.
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 March 3, 2025 to shareholders of record of the Series A
Preferred Stock at the close of business on February 14, 2025.
Conference Call and Webcast
The Company will host a conference call to discuss its fourth
quarter 2024 financial results on Thursday, January 30, 2025 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
8644808. The replay will be available through February 6, 2025. 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 founded in 2005. Its
banking subsidiary, Bridgewater Bank, is a premier, full-service
bank dedicated to providing responsive support and simple solutions
to businesses, entrepreneurs, and successful individuals across the
Twin Cities. Bridgewater offers a comprehensive suite of products
and services spanning deposits, lending, and treasury management
solutions. Bridgewater has also received numerous awards for its
banking services and esteemed corporate culture. With total assets
of $5.1 billion and nine strategically located branches as of
December 31, 2024, Bridgewater is one of the largest locally-led
banks in Minnesota and is committed to being the finest
entrepreneurial bank. For more information, please visit
www.bridgewaterbankmn.com.
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; effects on the U.S. economy resulting from the
implementation of policies proposed by the new presidential
administration, including tariffs, mass deportations and tax
regulations; 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 several bank failures;
credit risk and risks from concentrations (by type of borrower,
geographic area, collateral and industry) within the Company’s loan
portfolio or large loans to certain borrowers (including CRE
loans); 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 as may be adopted by
state and federal regulatory agencies, the FASB, SEC or PCAOB; 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 or as a result of insider fraud;
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, “fintech” companies and digital asset
service providers; the effectiveness of our risk management
framework; the commencement, cost 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 prior bank failures; risks related to
climate change and the negative impact it may have on our customers
and their businesses; the imposition of tariffs or 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 ongoing conflicts 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 acquisition of First Minnetonka City
Bank, including the possibility that the merger may be more
difficult or expensive to integrate than anticipated, and the
effect of the merger on the Company’s customer and employee
relationships and operating results; changes to U.S. or state tax
laws, regulations and governmental policies concerning the
Company’s general business, including changes in interpretation or
prioritization and changes in response to prior bank failures; 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
December 31,
September 30,
June 30,
March 31,
December 31,
(dollars in thousands)
2024
2024
2024
2024
2023
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Income Statement
Net Interest Income
$
26,967
$
25,599
$
24,996
$
24,631
$
25,314
Provision for (Recovery of) Credit
Losses
2,175
—
600
750
(250
)
Noninterest Income
2,533
1,522
1,763
1,550
1,409
Noninterest Expense
16,812
15,760
15,539
15,189
15,740
Net Income
8,204
8,675
8,115
7,831
8,873
Net Income Available to Common
Shareholders
7,190
7,662
7,101
6,818
7,859
Per Common Share Data
Basic Earnings Per Share
$
0.26
$
0.28
$
0.26
$
0.25
$
0.28
Diluted Earnings Per Share
0.26
0.27
0.26
0.24
0.28
Adjusted Diluted Earnings Per Share
(1)
0.27
0.28
0.26
0.24
0.28
Book Value Per Share
14.21
14.06
13.63
13.30
12.94
Tangible Book Value Per Share (1)
13.49
13.96
13.53
13.20
12.84
Basic Weighted Average Shares
Outstanding
27,459,433
27,382,798
27,386,713
27,691,401
27,870,430
Diluted Weighted Average Shares
Outstanding
28,055,532
27,904,910
27,748,184
28,089,805
28,238,056
Shares Outstanding at Period End
27,552,449
27,425,690
27,348,049
27,589,827
27,748,965
Financial Ratios
Return on Average Assets (2)
0.68
%
0.73
%
0.70
%
0.69
%
0.77
%
Pre-Provision Net Revenue Return on
Average Assets (1)(2)
1.05
0.96
0.94
0.95
0.96
Return on Average Shareholders' Equity
(2)
7.16
7.79
7.49
7.35
8.43
Return on Average Tangible Common Equity
(1)(2)
7.43
8.16
7.80
7.64
8.95
Net Interest Margin (3)
2.32
2.24
2.24
2.24
2.27
Core Net Interest Margin (1)(3)
2.25
2.16
2.17
2.18
2.21
Cost of Total Deposits
3.40
3.58
3.46
3.32
3.19
Cost of Funds
3.38
3.54
3.49
3.34
3.23
Efficiency Ratio (1)
56.8
58.0
58.7
58.2
58.8
Noninterest Expense to Average Assets
(2)
1.40
1.33
1.35
1.33
1.37
Adjusted Financial Ratios (1)
Adjusted Return on Average Assets (2)
0.71
%
0.75
%
0.70
%
0.69
%
0.77
%
Adjusted Pre-Provision Net Revenue Return
on Average Assets (2)
1.09
0.98
0.94
0.95
0.96
Adjusted Return on Average Shareholders'
Equity (2)
7.49
7.94
7.49
7.35
8.43
Adjusted Return on Average Tangible Common
Equity (2)
7.82
8.34
7.80
7.64
8.95
Adjusted Efficiency Ratio
55.2
57.2
58.7
58.2
58.8
Adjusted Noninterest Expense to Average
Assets (2)
1.36
1.31
1.35
1.33
1.37
Balance Sheet
Total Assets
$
5,066,242
$
4,691,517
$
4,687,035
$
4,723,109
$
4,611,990
Total Loans, Gross
3,868,514
3,685,590
3,800,385
3,784,205
3,724,282
Deposits
4,086,767
3,747,442
3,807,712
3,807,225
3,709,948
Total Shareholders' Equity
457,935
452,200
439,241
433,611
425,515
Loan to Deposit Ratio
94.7
%
98.3
%
99.8
%
99.4
%
100.4
%
Core Deposits to Total Deposits (4)
76.0
71.5
67.9
69.3
68.7
Uninsured Deposits to Total Deposits
27.7
25.0
22.5
26.0
24.3
Asset Quality
Net Loan Charge-Offs to Average Loans
(2)
0.03
%
0.10
%
0.00
%
0.00
%
0.01
%
Nonperforming Assets to Total Assets
(5)
0.01
0.19
0.01
0.01
0.02
Allowance for Credit Losses to Total
Loans
1.35
1.38
1.37
1.36
1.36
As of and for the Three Months
Ended
December 31,
September 30,
June 30,
March 31,
December 31,
(dollars in thousands)
2024
2024
2024
2024
2023
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Capital Ratios (Consolidated)
(6)
Tier 1 Leverage Ratio
9.45
%
9.75
%
9.66
%
9.66
%
9.57
%
Common Equity Tier 1 Risk-based Capital
Ratio
9.08
9.79
9.41
9.21
9.16
Tier 1 Risk-based Capital Ratio
10.64
11.44
11.03
10.83
10.79
Total Risk-based Capital Ratio
13.76
14.62
14.16
14.00
13.97
Tangible Common Equity to Tangible Assets
(1)
7.36
8.17
7.90
7.72
7.73
_______________________
(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)
December 31,
September 30,
June 30,
March 31,
December 31,
2024
2024
2024
2024
2023
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Assets
Cash and Cash Equivalents
$
229,760
$
191,859
$
134,093
$
143,355
$
128,562
Bank-Owned Certificates of Deposit
4,377
—
—
—
—
Securities Available for Sale, at Fair
Value
768,247
664,715
601,057
633,282
604,104
Loans, Net of Allowance for Credit
Losses
3,809,436
3,628,867
3,742,222
3,726,502
3,667,215
Federal Home Loan Bank (FHLB) Stock, at
Cost
19,297
18,626
15,844
17,195
17,097
Premises and Equipment, Net
49,533
47,777
47,902
48,299
48,886
Foreclosed Assets
—
434
—
20
—
Accrued Interest
17,711
16,750
16,944
16,696
16,697
Goodwill
11,982
2,626
2,626
2,626
2,626
Other Intangible Assets, Net
7,850
163
171
180
188
Bank-Owned Life Insurance
44,646
38,219
35,090
34,778
34,477
Other Assets
103,403
81,481
91,086
100,176
92,138
Total Assets
$
5,066,242
$
4,691,517
$
4,687,035
$
4,723,109
$
4,611,990
Liabilities and Equity
Liabilities
Deposits:
Noninterest Bearing
$
800,763
$
713,309
$
705,175
$
698,432
$
756,964
Interest Bearing
3,286,004
3,034,133
3,102,537
3,108,793
2,952,984
Total Deposits
4,086,767
3,747,442
3,807,712
3,807,225
3,709,948
Notes Payable
13,750
13,750
13,750
13,750
13,750
FHLB Advances
359,500
349,500
287,000
317,000
319,500
Subordinated Debentures, Net of Issuance
Costs
79,670
79,574
79,479
79,383
79,288
Accrued Interest Payable
4,008
3,458
3,999
4,405
5,282
Other Liabilities
64,612
45,593
55,854
67,735
58,707
Total Liabilities
4,608,307
4,239,317
4,247,794
4,289,498
4,186,475
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 December
31, 2024 (unaudited), September 30, 2024 (unaudited), June 30, 2024
(unaudited), March 31, 2024 (unaudited), and December 31, 2023
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
27,552,449 at December 31, 2024 (unaudited), 27,425,690 at
September 30, 2024 (unaudited), 27,348,049 at June 30, 2024
(unaudited), 27,589,827 at March 31, 2024 (unaudited), and
27,748,965 at December 31, 2023
276
274
273
276
277
Additional Paid-In Capital
95,088
94,597
93,205
95,069
96,320
Retained Earnings
309,421
302,231
294,569
287,468
280,650
Accumulated Other Comprehensive Loss
(13,364
)
(11,416
)
(15,320
)
(15,716
)
(18,246
)
Total Shareholders' Equity
457,935
452,200
439,241
433,611
425,515
Total Liabilities and Equity
$
5,066,242
$
4,691,517
$
4,687,035
$
4,723,109
$
4,611,990
Bridgewater Bancshares, Inc. and Subsidiaries
Consolidated Statements of
Income
(dollars in thousands, except per share
data)
Three Months Ended
Year Ended
December 31,
September 30,
June 30,
March 31,
December 31,
December 31,
December 31,
2024
2024
2024
2024
2023
2024
2023
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Interest Income
Loans, Including Fees
$
51,870
$
51,895
$
51,385
$
49,581
$
49,727
$
204,731
$
191,402
Investment Securities
9,109
8,725
8,177
7,916
7,283
33,927
26,245
Other
2,345
2,407
1,316
1,172
1,543
7,240
4,708
Total Interest Income
63,324
63,027
60,878
58,669
58,553
245,898
222,355
Interest Expense
Deposits
32,810
34,187
31,618
30,190
29,448
128,805
96,045
Federal Funds Purchased
42
2
853
304
268
1,201
8,521
Notes Payable
275
296
296
295
299
1,162
1,143
FHLB Advances
2,229
1,942
2,125
2,258
2,220
8,554
7,489
Subordinated Debentures
1,001
1,001
990
991
1,004
3,983
3,983
Total Interest Expense
36,357
37,428
35,882
34,038
33,239
143,705
117,181
Net Interest Income
26,967
25,599
24,996
24,631
25,314
102,193
105,174
Provision for (Recovery of) Credit
Losses
2,175
—
600
750
(250
)
3,525
(175
)
Net Interest Income After Provision for
(Recovery of) Credit Losses
24,792
25,599
24,396
23,881
25,564
98,668
105,349
Noninterest Income
Customer Service Fees
394
373
366
342
359
1,475
1,455
Net Gain (Loss) on Sales of Securities
—
(28
)
320
93
(27
)
385
(33
)
Net Gain on Sales of Foreclosed Assets
62
—
—
—
—
62
—
Letter of Credit Fees
849
424
387
316
418
1,976
1,746
Debit Card Interchange Fees
145
152
155
141
152
593
595
Swap Fees
521
26
—
—
—
547
—
Bank-Owned Life Insurance
362
352
312
301
268
1,327
992
FHLB Prepayment Income
—
—
—
—
—
—
792
Other Income
200
223
223
357
239
1,003
946
Total Noninterest Income
2,533
1,522
1,763
1,550
1,409
7,368
6,493
Noninterest Expense
Salaries and Employee Benefits
10,605
9,851
9,675
9,433
9,615
39,564
36,538
Occupancy and Equipment
1,181
1,069
1,092
1,057
1,062
4,399
4,447
FDIC Insurance Assessment
609
750
725
875
1,050
2,959
3,690
Data Processing
445
368
472
412
424
1,697
1,574
Professional and Consulting Fees
989
1,149
852
889
782
3,879
3,081
Derivative Collateral Fees
426
381
528
486
573
1,821
1,900
Information Technology and
Telecommunications
877
840
812
796
812
3,325
2,889
Marketing and Advertising
479
367
317
322
324
1,485
1,129
Intangible Asset Amortization
52
9
8
9
9
78
100
Other Expense
1,149
976
1,058
910
1,089
4,093
3,972
Total Noninterest Expense
16,812
15,760
15,539
15,189
15,740
63,300
59,320
Income Before Income Taxes
10,513
11,361
10,620
10,242
11,233
42,736
52,522
Provision for Income Taxes
2,309
2,686
2,505
2,411
2,360
9,911
12,562
Net Income
8,204
8,675
8,115
7,831
8,873
32,825
39,960
Preferred Stock Dividends
(1,014
)
(1,013
)
(1,014
)
(1,013
)
(1,014
)
(4,054
)
(4,054
)
Net Income Available to Common
Shareholders
$
7,190
$
7,662
$
7,101
$
6,818
$
7,859
$
28,771
$
35,906
Earnings Per Share
Basic
$
0.26
$
0.28
$
0.26
$
0.25
$
0.28
$
1.05
$
1.29
Diluted
0.26
0.27
0.26
0.24
0.28
1.03
1.27
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
December 31, 2024
September 30, 2024
December 31, 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
$
181,904
$
1,968
4.30
%
$
157,114
$
1,971
4.99
%
$
106,275
$
1,233
4.60
%
Investment Securities:
Taxable Investment Securities
723,038
8,814
4.85
668,429
8,406
5.00
600,856
7,007
4.63
Tax-Exempt Investment Securities (1)
28,681
374
5.19
31,496
402
5.08
29,172
350
4.75
Total Investment Securities
751,719
9,188
4.86
699,925
8,808
5.01
630,028
7,357
4.63
Loans (1)(2)
3,730,532
52,078
5.55
3,721,654
52,118
5.57
3,726,126
50,022
5.33
Federal Home Loan Bank Stock
18,686
377
8.02
16,828
436
10.31
17,999
310
6.85
Total Interest Earning Assets
4,682,841
63,611
5.40
%
4,595,521
63,333
5.48
%
4,480,428
58,922
5.22
%
Noninterest Earning Assets
105,195
108,283
87,018
Total Assets
$
4,788,036
$
4,703,804
$
4,567,446
Interest Bearing Liabilities:
Deposits:
Interest Bearing Transaction Deposits
$
836,155
$
8,962
4.26
%
$
804,161
$
9,369
4.63
%
$
719,630
$
7,546
4.16
%
Savings and Money Market Deposits
1,073,194
10,795
4.00
939,665
10,262
4.34
911,835
9,003
3.92
Time Deposits
336,917
3,650
4.31
355,050
3,918
4.39
268,140
2,330
3.45
Brokered Deposits
875,015
9,403
4.27
989,712
10,638
4.28
1,009,166
10,569
4.16
Total Interest Bearing Deposits
3,121,281
32,810
4.18
3,088,588
34,187
4.40
2,908,771
29,448
4.02
Federal Funds Purchased
3,290
42
5.09
141
2
5.72
18,932
268
5.62
Notes Payable
13,750
275
7.95
13,750
296
8.58
13,750
299
8.62
FHLB Advances
347,652
2,229
2.55
309,120
1,942
2.50
303,467
2,220
2.90
Subordinated Debentures
79,616
1,001
5.00
79,519
1,001
5.01
79,233
1,004
5.02
Total Interest Bearing Liabilities
3,565,589
36,357
4.06
%
3,491,118
37,428
4.27
%
3,324,153
33,239
3.97
%
Noninterest Bearing
Liabilities:
Noninterest Bearing Transaction
Deposits
718,227
710,192
753,430
Other Noninterest Bearing Liabilities
48,271
59,417
72,074
Total Noninterest Bearing Liabilities
766,498
769,609
825,504
Shareholders' Equity
455,949
443,077
417,789
Total Liabilities and Shareholders'
Equity
$
4,788,036
$
4,703,804
$
4,567,446
Net Interest Income / Interest Rate
Spread
27,254
1.35
%
25,905
1.21
%
25,683
1.25
%
Net Interest Margin (3)
2.32
%
2.24
%
2.27
%
Taxable Equivalent Adjustment:
Tax-Exempt Investment Securities and
Loans
(287
)
(306
)
(369
)
Net Interest Income
$
26,967
$
25,599
$
25,314
_______________________ (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 Year Ended
December 31, 2024
December 31, 2023
Average
Interest
Yield/
Average
Interest
Yield/
(dollars in thousands)
Balance
& Fees
Rate
Balance
& Fees
Rate
Interest Earning Assets:
Cash Investments
$
124,205
$
5,690
4.58
%
$
77,759
$
3,170
4.08
%
Investment Securities:
Taxable Investment Securities
668,012
32,681
4.89
577,102
25,199
4.37
Tax-Exempt Investment Securities (1)
30,864
1,577
5.11
29,004
1,325
4.57
Total Investment Securities
698,876
34,258
4.90
606,106
26,524
4.38
Loans (1)(2)
3,738,260
205,646
5.50
3,699,252
192,679
5.21
Federal Home Loan Bank Stock
18,256
1,550
8.49
21,249
1,538
7.24
Total Interest Earning Assets
4,579,597
247,144
5.40
%
4,404,366
223,911
5.08
%
Noninterest Earning Assets
103,547
86,438
Total Assets
$
4,683,144
$
4,490,804
Interest Bearing Liabilities:
Deposits:
Interest Bearing Transaction Deposits
$
776,768
$
34,294
4.41
%
$
650,028
$
23,379
3.60
%
Savings and Money Market Deposits
956,300
39,297
4.11
922,799
30,639
3.32
Time Deposits
342,582
14,585
4.26
263,161
7,064
2.68
Brokered Deposits
963,676
40,629
4.22
909,662
34,963
3.84
Total Interest Bearing Deposits
3,039,326
128,805
4.24
2,745,650
96,045
3.50
Federal Funds Purchased
21,493
1,201
5.59
169,645
8,521
5.02
Notes Payable
13,750
1,162
8.45
13,750
1,143
8.31
FHLB Advances
320,497
8,554
2.67
238,000
7,489
3.15
Subordinated Debentures
79,473
3,983
5.01
79,090
3,983
5.04
Total Interest Bearing Liabilities
3,474,539
143,705
4.14
%
3,246,135
117,181
3.61
%
Noninterest Bearing
Liabilities:
Noninterest Bearing Transaction
Deposits
705,247
768,428
Other Noninterest Bearing Liabilities
62,595
65,763
Total Noninterest Bearing Liabilities
767,842
834,191
Shareholders' Equity
440,763
410,478
Total Liabilities and Shareholders'
Equity
$
4,683,144
$
4,490,804
Net Interest Income / Interest Rate
Spread
103,439
1.26
%
106,730
1.47
%
Net Interest Margin (3)
2.26
%
2.42
%
Taxable Equivalent Adjustment:
Tax-Exempt Investment Securities and
Loans
(1,246
)
(1,556
)
Net Interest Income
$
102,193
$
105,174
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 Year
Ended
December 31,
September 30,
June 30,
March 31,
December 31,
December 31,
December 31,
(dollars in thousands)
2024
2024
2024
2024
2023
2024
2023
Allowance for Credit Losses
Balance at Beginning of Period
$
51,018
$
51,949
$
51,347
$
50,494
$
50,585
$
50,494
$
47,996
Impact of Adopting CECL
—
—
—
—
—
—
650
Day 1 PCD Allowance
114
—
—
—
—
114
—
Provision for Credit Losses (1)
1,450
—
600
850
—
2,900
2,050
Charge-offs
(317
)
(937
)
(10
)
(2
)
(95
)
(1,266
)
(224
)
Recoveries
12
6
12
5
4
35
22
Net Charge-offs
$
(305
)
$
(931
)
$
2
$
3
$
(91
)
$
(1,231
)
$
(202
)
Balance at End of Period
52,277
51,018
51,949
51,347
50,494
52,277
50,494
Allowance for Credit Losses to Total
Loans
1.35
%
1.38
%
1.37
%
1.36
%
1.36
%
1.35
%
1.36
%
_______________________ (1)
Includes a day 1 provision for credit
losses for non-PCD loans acquired in the FMCB transanction of
$950,000 for the three and twelve months ended December 31,
2024.
As of and for the Three Months
Ended
As of and for the Year
Ended
December 31,
September 30,
June 30,
March 31,
December 31,
December 31,
December 31,
(dollars in thousands)
2024
2024
2024
2024
2023
2024
2023
Provision for Credit Losses on Loans
$
1,450
$
—
$
600
$
850
$
—
$
2,900
$
2,050
Provision for (Recovery of) Credit Losses
for Off-Balance Sheet Credit Exposures
725
—
—
(100
)
(250
)
625
(2,225
)
Provision for (Recovery of) Credit
Losses
$
2,175
$
—
$
600
$
750
$
(250
)
$
3,525
$
(175
)
As of and for the Three Months
Ended
December 31,
September 30,
June 30,
March 31,
December 31,
(dollars in thousands)
2024
2024
2024
2024
2023
Selected Asset Quality Data
Loans 30-89 Days Past Due
$
1,291
$
65
$
502
$
—
$
15,110
Loans 30-89 Days Past Due to Total
Loans
0.03
%
0.00
%
0.01
%
0.00
%
0.41
%
Nonperforming Loans
$
301
$
8,378
$
678
$
249
$
919
Nonperforming Loans to Total Loans
0.01
%
0.23
%
0.02
%
0.01
%
0.02
%
Nonaccrual Loans to Total Loans
0.01
0.23
0.02
0.01
0.02
Nonaccrual Loans and Loans Past Due 90
Days and Still Accruing to Total Loans
0.01
0.23
0.02
0.01
0.02
Foreclosed Assets
$
—
$
434
$
—
$
20
$
—
Nonperforming Assets (1)
301
8,812
678
269
919
Nonperforming Assets to Total Assets
(1)
0.01
%
0.19
%
0.01
%
0.01
%
0.02
%
Net Loan Charge-Offs (Annualized) to
Average Loans
0.03
0.10
0.00
0.00
0.01
Special Mention/Watchlist Risk Rated
Loans
$
46,581
$
31,991
$
30,436
$
21,624
$
26,485
Substandard Risk Rated Loans
21,791
31,637
33,908
33,829
35,858
_______________________ (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 Year Ended
December 31,
September 30,
June 30,
March 31,
December 31,
December 31,
December 31,
(dollars in thousands)
2024
2024
2024
2024
2023
2024
2023
Pre-Provision Net Revenue
Noninterest Income
$
2,533
$
1,522
$
1,763
$
1,550
$
1,409
$
7,368
$
6,493
Less: (Gain) Loss on Sales of
Securities
—
28
(320
)
(93
)
27
(385
)
33
Less: FHLB Advance Prepayment Income
—
—
—
—
—
—
(792
)
Total Operating Noninterest Income
2,533
1,550
1,443
1,457
1,436
6,983
5,734
Plus: Net Interest Income
26,967
25,599
24,996
24,631
25,314
102,193
105,174
Net Operating Revenue
$
29,500
$
27,149
$
26,439
$
26,088
$
26,750
$
109,176
$
110,908
Noninterest Expense
$
16,812
$
15,760
$
15,539
$
15,189
$
15,740
$
63,300
$
59,320
Total Operating Noninterest Expense
$
16,812
$
15,760
$
15,539
$
15,189
$
15,740
$
63,300
$
59,320
Pre-Provision Net Revenue
$
12,688
$
11,389
$
10,900
$
10,899
$
11,010
$
45,876
$
51,588
Plus:
Non-Operating Revenue Adjustments
—
(28
)
320
93
(27
)
385
759
Less:
Provision (Recovery of) for Credit
Losses
2,175
—
600
750
(250
)
3,525
(175
)
Provision for Income Taxes
2,309
2,686
2,505
2,411
2,360
9,911
12,562
Net Income
$
8,204
$
8,675
$
8,115
$
7,831
$
8,873
$
32,825
$
39,960
Average Assets
$
4,788,036
$
4,703,804
$
4,646,517
$
4,592,838
$
4,567,446
$
4,683,144
$
4,490,804
Pre-Provision Net Revenue Return on
Average Assets
1.05
%
0.96
%
0.94
%
0.95
%
0.96
%
0.98
%
1.15
%
Adjusted Pre-Provision Net
Revenue
Net Operating Revenue
$
29,500
$
27,149
$
26,439
$
26,088
$
26,750
$
109,176
$
110,908
Noninterest Expense
$
16,812
$
15,760
$
15,539
$
15,189
$
15,740
$
63,300
$
59,320
Less: Merger-related Expenses
(488
)
(224
)
—
—
—
(712
)
—
Adjusted Total Operating Noninterest
Expense
$
16,324
$
15,536
$
15,539
$
15,189
$
15,740
$
62,588
$
59,320
Adjusted Pre-Provision Net Revenue
$
13,176
$
11,613
$
10,900
$
10,899
$
11,010
$
46,588
$
51,588
Adjusted Pre-Provision Net Revenue Return
on Average Assets
1.09
%
0.98
%
0.94
%
0.95
%
0.96
%
0.99
%
1.15
%
Core Net Interest Margin
Net Interest Income (Tax-equivalent
Basis)
$
27,255
$
25,905
$
25,288
$
24,992
$
25,683
$
103,440
$
106,730
Less: Loan Fees
(747
)
(968
)
(767
)
(608
)
(751
)
(3,090
)
(3,604
)
Core Net Interest Income
$
26,508
$
24,937
$
24,521
$
24,384
$
24,932
$
100,350
$
103,126
Average Interest Earning Assets
$
4,682,841
$
4,595,521
$
4,545,920
$
4,492,756
$
4,480,428
$
4,579,597
$
4,404,366
Core Net Interest Margin
2.25
%
2.16
%
2.17
%
2.18
%
2.21
%
2.19
%
2.34
%
Efficiency Ratio
Noninterest Expense
$
16,812
$
15,760
$
15,539
$
15,189
$
15,740
$
63,300
$
59,320
Less: Amortization of Intangible
Assets
(52
)
(9
)
(8
)
(9
)
(9
)
(78
)
(100
)
Adjusted Noninterest Expense
$
16,760
$
15,751
$
15,531
$
15,180
$
15,731
$
63,222
$
59,220
Net Interest Income
$
26,967
$
25,599
$
24,996
$
24,631
$
25,314
$
102,193
$
105,174
Noninterest Income
2,533
1,522
1,763
1,550
1,409
7,368
6,493
Less: Gain (Loss) on Sales of
Securities
—
28
(320
)
(93
)
27
(385
)
33
Adjusted Operating Revenue
$
29,500
$
27,149
$
26,439
$
26,088
$
26,750
$
109,176
$
111,700
Efficiency Ratio
56.8
%
58.0
%
58.7
%
58.2
%
58.8
%
57.9
%
53.0
%
Adjusted Efficiency Ratio
Noninterest Expense
$
16,812
$
15,760
$
15,539
$
15,189
$
15,740
$
63,300
$
59,320
Less: Amortization of Intangible
Assets
(52
)
(9
)
(8
)
(9
)
(9
)
(78
)
(100
)
Less: Merger-related Expenses
(488
)
(224
)
—
—
—
(712
)
—
Adjusted Noninterest Expense
$
16,272
$
15,527
$
15,531
$
15,180
$
15,731
$
62,510
$
59,220
Net Interest Income
$
26,967
$
25,599
$
24,996
$
24,631
$
25,314
$
102,193
$
105,174
Noninterest Income
2,533
1,522
1,763
1,550
1,409
7,368
6,493
Less: Gain (Loss) on Sales of
Securities
—
28
(320
)
(93
)
27
(385
)
33
Adjusted Operating Revenue
$
29,500
$
27,149
$
26,439
$
26,088
$
26,750
$
109,176
$
111,700
Adjusted Efficiency Ratio
55.2
%
57.2
%
58.7
%
58.2
%
58.8
%
57.3
%
53.0
%
Bridgewater Bancshares, Inc. and
Subsidiaries
Non-GAAP Financial Measures
(dollars in thousands)
(unaudited)
For the Three Months
Ended
For the Year Ended
December 31,
September 30,
June 30,
March 31,
December 31,
December 31,
December 31,
(dollars in thousands)
2024
2024
2024
2024
2023
2024
2023
Adjusted Noninterest Expense to Average
Assets (Annualized)
Noninterest Expense
$
16,812
$
15,760
$
15,539
$
15,189
$
15,740
$
63,300
$
59,320
Less: Merger-related Expenses
(488
)
(224
)
—
—
—
(712
)
—
Adjusted Noninterest Expense
$
16,324
$
15,536
$
15,539
$
15,189
$
15,740
$
62,588
$
59,320
Average Assets
$
4,788,036
$
4,703,804
$
4,646,517
$
4,592,838
$
4,567,446
$
4,683,144
$
4,490,804
Adjusted Noninterest Expense to Average
Assets (Annualized)
1.36
%
1.31
%
1.35
%
1.33
%
1.37
%
1.34
%
1.32
%
Tangible Common Equity and Tangible
Common Equity/Tangible Assets
Total Shareholders' Equity
$
457,935
$
452,200
$
439,241
$
433,611
$
425,515
Less: Preferred Stock
(66,514
)
(66,514
)
(66,514
)
(66,514
)
(66,514
)
Total Common Shareholders' Equity
391,421
385,686
372,727
367,097
359,001
Less: Intangible Assets
(19,832
)
(2,789
)
(2,797
)
(2,806
)
(2,814
)
Tangible Common Equity
$
371,589
$
382,897
$
369,930
$
364,291
$
356,187
Total Assets
$
5,066,242
$
4,691,517
$
4,687,035
$
4,723,109
$
4,611,990
Less: Intangible Assets
(19,832
)
(2,789
)
(2,797
)
(2,806
)
(2,814
)
Tangible Assets
$
5,046,410
$
4,688,728
$
4,684,238
$
4,720,303
$
4,609,176
Tangible Common Equity/Tangible Assets
7.36
%
8.17
%
7.90
%
7.72
%
7.73
%
Tangible Book Value Per Share
Book Value Per Common Share
$
14.21
$
14.06
$
13.63
$
13.30
$
12.94
Less: Effects of Intangible Assets
(0.72
)
(0.10
)
(0.10
)
(0.10
)
(0.10
)
Tangible Book Value Per Common Share
$
13.49
$
13.96
$
13.53
$
13.20
$
12.84
Return on Average Tangible Common
Equity
Net Income Available to Common
Shareholders
$
7,190
$
7,662
$
7,101
$
6,818
$
7,859
$
28,771
$
35,906
Average Shareholders' Equity
$
455,949
$
443,077
$
435,585
$
428,248
$
417,789
$
440,763
$
410,478
Less: Average Preferred Stock
(66,514
)
(66,514
)
(66,514
)
(66,514
)
(66,514
)
(66,514
)
(66,514
)
Average Common Equity
389,435
376,563
369,071
361,734
351,275
374,249
343,964
Less: Effects of Average Intangible
Assets
(4,412
)
(2,794
)
(2,802
)
(2,811
)
(2,819
)
(3,207
)
(2,847
)
Average Tangible Common Equity
$
385,023
$
373,769
$
366,269
$
358,923
$
348,456
$
371,042
$
341,117
Return on Average Tangible Common
Equity
7.43
%
8.16
%
7.80
%
7.64
%
8.95
%
7.75
%
10.53
%
Adjusted Diluted Earnings Per Common
Share
Net Income Available to Common
Shareholders
$
7,190
$
7,662
$
7,101
$
6,818
$
7,859
$
28,771
$
35,906
Add: Merger-related Expenses
488
224
—
—
—
712
—
Less: Tax Impact
(107
)
(53
)
—
—
—
(165
)
—
Net Income Available to Common
Shareholders, Excluding Impact of Merger-related Expenses
$
7,571
$
7,833
$
7,101
$
6,818
$
7,859
$
29,318
$
35,906
Diluted Weighted Average Shares
Outstanding
28,055,532
27,904,910
27,748,184
28,089,805
28,238,056
27,943,343
28,315,587
Adjusted Diluted Earnings Per Common
Share
$
0.27
$
0.28
$
0.26
$
0.24
$
0.28
$
1.05
$
1.27
Adjusted Return on Average
Assets
Net Income
$
8,204
$
8,675
$
8,115
$
7,831
$
8,873
$
32,825
$
39,960
Add: Merger-related Expenses
488
224
—
—
—
712
—
Less: Tax Impact
(107
)
(53
)
—
—
—
(165
)
—
Net Income, Excluding Impact of
Merger-related Expenses
$
8,585
$
8,846
$
8,115
$
7,831
$
8,873
$
33,372
$
39,960
Average Assets
$
4,788,036
$
4,703,804
$
4,646,517
$
4,592,838
$
4,567,446
$
4,683,144
$
4,490,804
Adjusted Return on Average Assets
0.71
%
0.75
%
0.70
%
0.69
%
0.77
%
0.71
%
0.89
%
Adjusted Return on Average
Shareholders' Equity
Net Income, Excluding Impact of
Merger-related Expenses
$
8,585
$
8,846
$
8,115
$
7,831
$
8,873
$
33,372
$
39,960
Average Shareholders' Equity
$
455,949
$
443,077
$
435,585
$
428,248
$
417,789
$
440,763
$
410,478
Adjusted Return on Average Shareholders'
Equity
7.49
%
7.94
%
7.49
%
7.35
%
8.43
%
7.57
%
9.73
%
Adjusted Return on Average Tangible
Common Equity
Net Income Available to Common
Shareholders, Excluding Impact of Merger-related Expenses
$
7,571
$
7,833
$
7,101
$
6,818
$
7,859
$
29,318
$
35,906
Average Tangible Common Equity
$
385,023
$
373,769
$
366,269
$
358,923
$
348,456
$
371,042
$
341,117
Adjusted Return on Average Tangible Common
Equity
7.82
%
8.34
%
7.80
%
7.64
%
8.95
%
7.90
%
10.53
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250128985553/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
Bridgewater Bancshares (NASDAQ:BWB)
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