Second Quarter 2024 Highlights
- Tangible book value per share(1) of $13.53 for the second
quarter of 2024, an increase of $0.32, or 9.8% annualized, compared
to $13.20 for the first quarter of 2024.
- Net interest income increased $365,000, or 1.5%, from the first
quarter of 2024, the first quarter-over-quarter increase since the
third quarter of 2022.
- Net interest margin (on a fully tax-equivalent basis) of 2.24%
for the second quarter of 2024, in line with the first quarter of
2024.
- Loan-to-deposit ratio of 99.8%, compared to 99.4% at March 31,
2024.
- Gross loans increased $16.2 million, or 1.7% annualized, from
the first quarter of 2024. On a year-to-date basis, gross loans
increased $76.1 million, or 4.1% annualized.
- Deposits increased by $487,000, or 0.1% annualized, from the
first quarter of 2024. On a year-to-date basis, deposits increased
by $97.8 million, or 5.3% annualized, and core deposits(2)
increased by $37.6 million, or 3.0% annualized.
- Efficiency ratio(1) of 58.7%, compared to 58.2% for the first
quarter of 2024.
- A provision for credit losses on loans of $600,000 was recorded
in the second quarter of 2024. The allowance for credit losses on
loans to total loans was 1.37% at June 30, 2024, compared to 1.36%
at March 31, 2024.
- Annualized net loan charge-offs as a percentage of average
loans of 0.00% for the second quarter of 2024, in line with the
first quarter of 2024.
- Nonperforming assets to total assets of 0.01% at both June 30,
2024 and March 31, 2024.
- Repurchased 252,707 shares of common stock at a weighted
average price of $11.48 per share, for a total of $2.9
million.
(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 $8.1 million for the second quarter of 2024, compared to
$7.8 million for the first quarter of 2024, and $9.8 million for
the second quarter of 2023. Earnings per diluted common share were
$0.26 for the second quarter of 2024, compared to $0.24 for the
first quarter of 2024, and $0.31 for the second quarter of
2023.
“Bridgewater saw positive profitability momentum during the
second quarter as total revenue and net interest income both
increased for the first time since the third quarter of 2022,” said
Chairman and Chief Executive Officer, Jerry Baack. “We were pleased
to see net interest margin hold steady as loan portfolio repricing
increased. Meanwhile, the pace of balance sheet growth year-to-date
remained on track with expectations, despite more moderated growth
in the second quarter.
“Asset quality was superb once again as our Twin Cities-focused
commercial real estate and multifamily portfolios continued to
perform well despite a challenging environment. In addition, our
unique corporate culture and responsive service model continued to
shine as Bridgewater was recognized as a top workplace by the Star
Tribune. Our ongoing focus on executing on our business model,
serving our clients, and driving shareholder value over time, have
now resulted in 30 consecutive quarters of tangible book value per
share growth.”
Key Financial Measures
As of and for the Three Months
Ended
As of and for the Six Months
Ended
June 30,
March 31,
June 30,
June 30,
June 30,
2024
2024
2023
2024
2023
Per Common Share Data
Basic Earnings Per Share
$
0.26
$
0.25
$
0.32
$
0.51
$
0.70
Diluted Earnings Per Share
0.26
0.24
0.31
0.50
0.69
Book Value Per Share
13.63
13.30
12.25
13.63
12.25
Tangible Book Value Per Share (1)
13.53
13.20
12.15
13.53
12.15
Financial Ratios
Return on Average Assets (2)
0.70
%
0.69
%
0.88
%
0.69
%
0.97
%
Pre-Provision Net Revenue Return on
Average Assets (1)(2)
0.94
0.95
1.16
0.95
1.32
Return on Average Shareholders' Equity
(2)
7.49
7.35
9.69
7.42
10.69
Return on Average Tangible Common Equity
(1)(2)
7.80
7.64
10.48
7.72
11.68
Net Interest Margin (3)
2.24
2.24
2.40
2.24
2.55
Core Net Interest Margin (1)(3)
2.17
2.18
2.31
2.18
2.46
Cost of Total Deposits
3.46
3.32
2.66
3.39
2.34
Cost of Funds
3.49
3.34
2.91
3.42
2.66
Efficiency Ratio (1)
58.7
58.2
52.3
58.5
48.9
Noninterest Expense to Average Assets
(2)
1.35
1.33
1.28
1.34
1.29
Tangible Common Equity to Tangible Assets
(1)
7.90
7.72
7.39
7.90
7.39
Common Equity Tier 1 Risk-based Capital
Ratio (Consolidated) (4)
9.41
9.21
8.72
9.41
8.72
Balance Sheet and Asset Quality
(dollars in thousands)
Total Assets
$
4,687,035
$
4,723,109
$
4,603,185
$
4,687,035
$
4,603,185
Total Loans, Gross
3,800,385
3,784,205
3,736,211
3,800,385
3,736,211
Deposits
3,807,712
3,807,225
3,577,932
3,807,712
3,577,932
Loan to Deposit Ratio
99.8
%
99.4
%
104.4
%
99.8
%
104.4
%
Net Loan Charge-Offs (Recoveries) to
Average Loans (2)
0.00
0.00
0.00
0.00
0.00
Nonperforming Assets to Total Assets
(5)
0.01
0.01
0.02
0.01
0.02
Allowance for Credit Losses to Total
Loans
1.37
1.36
1.36
1.37
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
second quarter of 2024 was 2.24%, stable with 2.24% in the first
quarter of 2024, and a 16 basis point decline from 2.40% in the
second 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 2.17% for the second quarter of 2024,
a one basis point decline from 2.18% in the first quarter of 2024,
and a 14 basis point decline from 2.31% in the second quarter of
2023.
- The linked-quarter margin remained stable.
- 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 $25.0 million for the second quarter of
2024, an increase of $365,000 from $24.6 million in the first
quarter of 2024, and a decrease of $876,000 from $25.9 million in
the second quarter of 2023.
- The linked-quarter increase in net interest income was
primarily due to growth and higher yields in the loan and
securities portfolios.
- The year-over year decrease in net interest income was
primarily due to higher rates paid on deposits and growth in the
rising interest rate environment, which outpaced the repricing of
the loan and securities portfolios.
Interest income was $60.9 million for the second quarter of
2024, an increase of $2.2 million from $58.7 million in the first
quarter of 2024, and an increase of $5.9 million from $55.0 million
in the second quarter of 2023.
- The yield on interest earning assets (on a fully tax-equivalent
basis) was 5.41% in the second quarter of 2024, compared to 5.28%
in the first quarter of 2024 and 5.06% in the second quarter of
2023.
- The linked-quarter increase in the yield on interest earning
assets was primarily due to growth and repricing of the loan
portfolio at yields accretive to the existing portfolio.
- The year-over-year increase in the yield on interest earning
assets was primarily due to the purchase of higher yielding
securities and the growth and repricing of the loan and securities
portfolios in the rising interest rate environment.
- Loan interest income and loan fees remain the primary
contributing factors to the changes in the yield on interest
earning assets. The aggregate loan yield increased to 5.50% in the
second quarter of 2024, 12 basis points higher than 5.38% in the
first quarter of 2024, and 31 basis points higher than 5.19% in the
second quarter of 2023.
- The core loan yield continues 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
June 30, 2024
March 30, 2024
December 31, 2023
September 30, 2023
June 30, 2023
Interest
5.42
%
5.31
%
5.25
%
5.16
%
5.09
%
Fees
0.08
0.07
0.08
0.10
0.10
Yield on Loans
5.50
%
5.38
%
5.33
%
5.26
%
5.19
%
Interest expense was $35.9 million for the second quarter of
2024, an increase of $1.8 million from $34.0 million in the first
quarter of 2024, and an increase of $6.8 million from $29.1 million
in the second quarter of 2023.
- The cost of interest bearing liabilities was 4.19% in the
second quarter of 2024, compared to 4.03% in the first quarter of
2024 and 3.59% in the second quarter of 2023.
- The linked-quarter increase in the cost of interest bearing
liabilities was primarily due to higher rates paid on deposits and
an increase 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 $31.6 million for the second
quarter of 2024, an increase of $1.4 million from $30.2 million in
the first quarter of 2024, and an increase of $8.6 million from
$23.0 million in the second quarter of 2023.
- The cost of total deposits was 3.46% in the second quarter of
2024, compared to 3.32% in the first quarter of 2024 and 2.66% in
the second quarter of 2023.
- The linked-quarter increase in the cost of total deposits was
primarily due to continued client demand for higher interest rates,
increased competition, and changes in the mix of deposits.
- 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 $600,000 for the
second quarter of 2024, compared to $850,000 for the first quarter
of 2024 and $550,000 for the second quarter of 2023.
- The provision for credit losses on loans recorded in the second
quarter of 2024 was primarily attributable to changes in the mix of
the loan portfolio.
- The allowance for credit losses on loans to total loans was
1.37% at June 30, 2024, compared to 1.36% at both March 31, 2024
and June 30, 2023.
There was no provision for credit losses for off-balance sheet
credit exposures for the second quarter of 2024, compared to a
negative provision of $100,000 for the first quarter of 2024 and a
negative provision of $500,000 for the second quarter of 2023.
- No provision was recorded during the second 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 $1.8 million for the second quarter of
2024, an increase of $213,000 from $1.6 million for the first
quarter of 2024 and an increase of $348,000 from $1.4 million for
the second quarter of 2023.
- The linked-quarter increase was primarily due to a net gain on
sale of securities and higher letter of credit fees, offset
partially by a decrease in other income.
- The year-over-year increase was primarily due to a net gain on
sale of securities and an increase in the cash surrender value of
bank-owned life insurance.
Noninterest Expense
Noninterest expense was $15.5 million for the second quarter of
2024, an increase of $350,000 from $15.2 million for the first
quarter of 2024 and an increase of $1.3 million from $14.3 million
for the second quarter of 2023.
- The linked-quarter increase was primarily due to increases in
salaries and employee benefits and other expense, offset partially
by a decrease in the FDIC insurance assessment.
- The year-over-year increase was primarily attributable to
increases in salaries and employee benefits, higher derivative
collateral fees and information technology and telecommunications,
offset partially by a decrease in the FDIC insurance
assessment.
- The efficiency ratio, a non-GAAP financial measure, was 58.7%
for the second quarter of 2024, compared to 58.2% for the first
quarter of 2024, and 52.3% for the second quarter of 2023.
- The Company had 258 full-time equivalent employees at June 30,
2024, compared to 255 employees at March 31, 2024, and 253
employees at June 30, 2023.
Income Taxes
The effective combined federal and state income tax rate for the
second quarter of 2024 was 23.6%, a slight increase from 23.5% for
the first quarter of 2024 and an increase from 24.3% for the second
quarter of 2023.
Balance Sheet
Loans
(dollars in thousands)
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
Commercial
$
518,762
$
483,069
$
464,061
$
459,854
$
460,061
Construction and Land Development
134,096
200,970
232,804
294,818
351,069
1 - 4 Family Construction
60,551
65,606
65,087
64,463
69,648
Real Estate Mortgage:
1 - 4 Family Mortgage
416,944
417,773
402,396
404,716
400,708
Multifamily
1,404,835
1,389,345
1,388,541
1,378,669
1,314,524
CRE Owner Occupied
185,988
182,589
175,783
159,485
159,088
CRE Nonowner Occupied
1,070,050
1,035,702
987,306
951,263
971,532
Total Real Estate Mortgage Loans
3,077,817
3,025,409
2,954,026
2,894,133
2,845,852
Consumer and Other
9,159
9,151
8,304
9,003
9,581
Total Loans, Gross
3,800,385
3,784,205
3,724,282
3,722,271
3,736,211
Allowance for Credit Losses on Loans
(51,949
)
(51,347
)
(50,494
)
(50,585
)
(50,701
)
Net Deferred Loan Fees
(6,214
)
(6,356
)
(6,573
)
(7,222
)
(7,718
)
Total Loans, Net
$
3,742,222
$
3,726,502
$
3,667,215
$
3,664,464
$
3,677,792
Total gross loans at June 30, 2024 were $3.80 billion, an
increase of $16.2 million, or 1.7% annualized, over total gross
loans of $3.78 billion at March 31, 2024, and an increase of $64.2
million, or 1.7%, over total gross loans of $3.74 billion at June
30, 2023.
- The increase in the loan portfolio during the second quarter of
2024 was due to increased loan originations, partially offset by
elevated loan payoffs. The loan portfolio composition remained
relatively stable during the quarter with the exception of the
construction and land development portfolio which decreased.
Deposits
(dollars in thousands)
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
Noninterest Bearing Transaction
Deposits
$
705,175
$
698,432
$
756,964
$
754,297
$
751,217
Interest Bearing Transaction Deposits
752,568
783,736
692,801
780,863
719,488
Savings and Money Market Deposits
943,994
979,773
935,091
872,534
860,613
Time Deposits
373,713
352,510
300,651
265,737
271,783
Brokered Deposits
1,032,262
992,774
1,024,441
1,002,078
974,831
Total Deposits
$
3,807,712
$
3,807,225
$
3,709,948
$
3,675,509
$
3,577,932
Total deposits at June 30, 2024 were $3.81 billion, an increase
of $487,000, over total deposits of $3.81 billion at March 31,
2024, and an increase of $229.8 million, or 6.4%, over total
deposits of $3.58 billion at June 30, 2023.
- Core deposits, defined as total deposits excluding brokered
deposits and time deposits greater than $250,000, decreased $52.7
million from the first quarter of 2024. Growth in core deposits can
fluctuate from quarter to quarter, as deposit growth is not always
linear. On a year-to-date basis, core deposits increased by $37.6
million, or 3.0% annualized.
- Brokered deposits continue to be used as a supplemental funding
source, as needed.
- Uninsured deposits were 23% of total deposits as of June 30,
2024, compared to 26% of total deposits as of March 31, 2024.
Liquidity
Total on- and off-balance sheet liquidity was $2.22 billion as
of June 30, 2024, compared to $2.25 billion at March 31, 2024 and
$1.96 billion at June 30, 2023.
Primary Liquidity—On-Balance
Sheet
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
(dollars in thousands)
Cash and Cash Equivalents
$
97,237
$
105,784
$
96,594
$
77,617
$
138,618
Securities Available for Sale
601,057
633,282
604,104
553,076
538,220
Less: Pledged Securities
(169,095
)
(169,479
)
(170,727
)
(164,277
)
(236,206
)
Total Primary Liquidity
$
529,199
$
569,587
$
529,971
$
466,416
$
440,632
Ratio of Primary Liquidity to Total
Deposits
13.9
%
15.0
%
14.3
%
12.7
%
12.3
%
Secondary Liquidity—Off-Balance Sheet
Borrowing Capacity
Net Secured Borrowing Capacity with the
FHLB
$
451,171
$
446,801
$
498,736
$
516,501
$
400,792
Net Secured Borrowing Capacity with the
Federal Reserve Bank
1,015,873
1,006,010
979,448
1,022,128
986,644
Unsecured Borrowing Capacity with
Correspondent Lenders
200,000
200,000
200,000
150,000
108,000
Secured Borrowing Capacity with
Correspondent Lender
26,250
26,250
26,250
26,250
26,250
Total Secondary Liquidity
$
1,693,294
$
1,679,061
$
1,704,434
$
1,714,879
$
1,521,686
Total Primary and Secondary Liquidity
$
2,222,493
$
2,248,648
$
2,234,405
$
2,181,295
$
1,962,318
Ratio of Primary and Secondary Liquidity
to Total Deposits
58.4
%
59.1
%
60.2
%
59.3
%
54.8
%
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 0.00% for each of the second quarter of 2024, the first
quarter of 2024 and the second quarter of 2023.
- At June 30, 2024, the Company’s nonperforming assets, which
include nonaccrual loans, loans past due 90 days and still
accruing, and foreclosed assets, were $678,000, or 0.01% of total
assets, compared to $269,000, or 0.01%, of total assets at March
31, 2024, and $778,000, or 0.02%, of total assets at June 30,
2023.
- Loans with potential weaknesses that warranted a watchlist risk
rating at June 30, 2024 totaled $30.4 million, compared to $21.6
million at March 31, 2024, and $27.2 million at June 30, 2023.
- Loans that warranted a substandard risk rating at June 30, 2024
totaled $33.9 million, compared to $33.8 million at March 31, 2024,
and $33.8 million at June 30, 2023.
Capital
Total shareholders’ equity at June 30, 2024 was $439.2 million,
an increase of $5.6 million, or 1.3%, compared to total
shareholders’ equity of $433.6 million at March 31, 2024, and an
increase of $30.1 million, or 7.4%, over total shareholders’ equity
of $409.1 million at June 30, 2023.
- The linked-quarter increase was primarily due to net income
retained, offset partially by preferred stock dividends and stock
repurchases.
- 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 9.41% at
June 30, 2024, compared to 9.21% at March 31, 2024 and 8.72% at
June 30, 2023.
- Tangible common equity as a percentage of tangible assets, a
non-GAAP financial measure, was 7.90% at June 30, 2024, compared to
7.72% at March 31, 2024, and 7.39% at June 30, 2023.
Tangible book value per share, a non-GAAP financial measure, was
$13.53 as of June 30, 2024, an increase of 2.4% from $13.20 as of
March 31, 2024, and an increase of 11.4% from $12.15 as of June 30,
2023.
- The Company has increased tangible book value per share each of
the past 30 quarters.
During the second quarter of 2024, the Company repurchased
252,707 shares of its common stock. Shares were repurchased at a
weighted average price of $11.48 per share, for a total of $2.9
million.
- The Company has $15.3 million remaining under its current share
repurchase authorization.
- On July 23, 2024, the Board of Directors extended
the expiration date of the current share repurchase authorization
from August 16, 2024 to August 20, 2025.
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 September 3, 2024 to shareholders of record of the Series A
Preferred Stock at the close of business on August 15, 2024.
Conference Call and Webcast
The Company will host a conference call to discuss its second
quarter 2024 financial results on Thursday, July 25, 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 3041856. The
replay will be available through August 1, 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 June 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 sustained
high 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 high rates 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, 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 high rates of 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 the 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 Israeli-Palestinian conflict and the
Russian invasion of Ukraine; potential impairment to the goodwill
the Company recorded in connection with our past acquisition;
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
June 30,
March 30,
December 31,
September 30,
June 30,
(dollars in thousands)
2024
2024
2023
2023
2023
Income Statement
Net Interest Income
$
24,996
$
24,631
$
25,314
$
25,421
$
25,872
Provision for (Recovery of) Credit
Losses
600
750
(250
)
(600
)
50
Noninterest Income
1,763
1,550
1,409
1,726
1,415
Noninterest Expense
15,539
15,189
15,740
15,237
14,274
Net Income
8,115
7,831
8,873
9,629
9,816
Net Income Available to Common
Shareholders
7,101
6,818
7,859
8,616
8,802
Per Common Share Data
Basic Earnings Per Share
$
0.26
$
0.25
$
0.28
$
0.31
$
0.32
Diluted Earnings Per Share
0.26
0.24
0.28
0.30
0.31
Book Value Per Share
13.63
13.30
12.94
12.47
12.25
Tangible Book Value Per Share (1)
13.53
13.20
12.84
12.37
12.15
Basic Weighted Average Shares
Outstanding
27,386,713
27,691,401
27,870,430
27,943,409
27,886,425
Diluted Weighted Average Shares
Outstanding
27,748,184
28,089,805
28,238,056
28,311,778
28,198,739
Shares Outstanding at Period End
27,348,049
27,589,827
27,748,965
28,015,505
27,973,995
Financial Ratios
Return on Average Assets (2)
0.70
%
0.69
%
0.77
%
0.85
%
0.88
%
Pre-Provision Net Revenue Return on
Average Assets (1)(2)
0.94
0.95
0.96
1.01
1.16
Return on Average Shareholders' Equity
(2)
7.49
7.35
8.43
9.23
9.69
Return on Average Tangible Common Equity
(1)(2)
7.80
7.64
8.95
9.92
10.48
Net Interest Margin (3)
2.24
2.24
2.27
2.32
2.40
Core Net Interest Margin (1)(3)
2.17
2.18
2.21
2.24
2.31
Cost of Total Deposits
3.46
3.32
3.19
2.99
2.66
Cost of Funds
3.49
3.34
3.23
3.10
2.91
Efficiency Ratio (1)
58.7
58.2
58.8
56.1
52.3
Noninterest Expense to Average Assets
(2)
1.35
1.33
1.37
1.34
1.28
Balance Sheet
Total Assets
$
4,687,035
$
4,723,109
$
4,611,990
$
4,557,070
$
4,603,185
Total Loans, Gross
3,800,385
3,784,205
3,724,282
3,722,271
3,736,211
Deposits
3,807,712
3,807,225
3,709,948
3,675,509
3,577,932
Total Shareholders' Equity
439,241
433,611
425,515
415,960
409,126
Loan to Deposit Ratio
99.8
%
99.4
%
100.4
%
101.3
%
104.4
%
Core Deposits to Total Deposits (4)
67.9
69.3
68.7
70.3
70.3
Uninsured Deposits to Total Deposits
22.5
26.0
24.3
22.2
22.1
Asset Quality
Net Loan Charge-Offs to Average Loans
(2)
0.00
%
0.00
%
0.01
%
0.01
%
0.00
%
Nonperforming Assets to Total Assets
(5)
0.01
0.01
0.02
0.02
0.02
Allowance for Credit Losses to Total
Loans
1.37
1.36
1.36
1.36
1.36
Capital Ratios (Consolidated)
(6)
Tier 1 Leverage Ratio
9.66
%
9.66
%
9.57
%
9.62
%
9.47
%
Common Equity Tier 1 Risk-based Capital
Ratio
9.41
9.21
9.16
9.07
8.72
Tier 1 Risk-based Capital Ratio
11.03
10.83
10.79
10.69
10.33
Total Risk-based Capital Ratio
14.16
14.00
13.97
13.88
13.50
Tangible Common Equity to Tangible Assets
(1)
7.90
7.72
7.73
7.61
7.39
____________________________________
(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)
June 30,
March 31,
December 31,
September 30,
June 30,
2024
2024
2023
2023
2023
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Assets
Cash and Cash Equivalents
$
134,093
$
143,355
$
128,562
$
124,358
$
177,101
Bank-Owned Certificates of Deposit
—
—
—
1,225
1,225
Securities Available for Sale, at Fair
Value
601,057
633,282
604,104
553,076
538,220
Loans, Net of Allowance for Credit
Losses
3,742,222
3,726,502
3,667,215
3,664,464
3,677,792
Federal Home Loan Bank (FHLB) Stock, at
Cost
15,844
17,195
17,097
17,056
21,557
Premises and Equipment, Net
47,902
48,299
48,886
49,331
49,710
Accrued Interest
16,944
16,696
16,697
15,182
13,822
Goodwill
2,626
2,626
2,626
2,626
2,626
Other Intangible Assets, Net
171
180
188
197
206
Bank-Owned Life Insurance
35,090
34,778
34,477
34,209
33,958
Other Assets
91,086
100,196
92,138
95,346
86,968
Total Assets
$
4,687,035
$
4,723,109
$
4,611,990
$
4,557,070
$
4,603,185
Liabilities and Equity
Liabilities
Deposits:
Noninterest Bearing
$
705,175
$
698,432
$
756,964
$
754,297
$
751,217
Interest Bearing
3,102,537
3,108,793
2,952,984
2,921,212
2,826,715
Total Deposits
3,807,712
3,807,225
3,709,948
3,675,509
3,577,932
Federal Funds Purchased
—
—
—
—
195,000
Notes Payable
13,750
13,750
13,750
13,750
13,750
FHLB Advances
287,000
317,000
319,500
294,500
262,000
Subordinated Debentures, Net of Issuance
Costs
79,479
79,383
79,288
79,192
79,096
Accrued Interest Payable
3,999
4,405
5,282
3,816
2,974
Other Liabilities
55,854
67,735
58,707
74,343
63,307
Total Liabilities
4,247,794
4,289,498
4,186,475
4,141,110
4,194,059
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 June 30,
2024 (unaudited), March 31, 2024 (unaudited), December 31, 2023,
September 30, 2023 (unaudited), and June 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
27,348,049 at June 30, 2024 (unaudited), 27,589,827 at March 31,
2024 (unaudited), 27,748,965 at December 31, 2023, 28,015,505 at
September 30, 2023 (unaudited), and 27,973,995 at June 30, 2023
(unaudited)
273
276
277
280
280
Additional Paid-In Capital
93,205
95,069
96,320
100,120
99,044
Retained Earnings
294,569
287,468
280,650
272,812
264,196
Accumulated Other Comprehensive Loss
(15,320
)
(15,716
)
(18,246
)
(23,766
)
(20,908
)
Total Shareholders' Equity
439,241
433,611
425,515
415,960
409,126
Total Liabilities and Equity
$
4,687,035
$
4,723,109
$
4,611,990
$
4,557,070
$
4,603,185
Bridgewater Bancshares, Inc. and
Subsidiaries
Consolidated Statements of
Income
(dollars in thousands, except per share
data)
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
March 31,
December 31,
September 30,
June 30,
June 30,
June 30,
(dollars in thousands)
2024
2024
2023
2023
2023
2024
2023
Interest Income
Loans, Including Fees
$
51,385
$
49,581
$
49,727
$
48,999
$
47,721
$
100,966
$
92,676
Investment Securities
8,177
7,916
7,283
6,507
6,237
16,093
12,455
Other
1,316
1,172
1,543
1,303
1,043
2,488
1,862
Total Interest Income
60,878
58,669
58,553
56,809
55,001
119,547
106,993
Interest Expense
Deposits
31,618
30,190
29,448
27,225
22,998
61,808
39,372
Federal Funds Purchased
853
304
268
548
2,761
1,157
7,705
Notes Payable
296
295
299
296
285
591
548
FHLB Advances
2,125
2,258
2,220
2,316
2,092
4,383
2,953
Subordinated Debentures
990
991
1,004
1,003
993
1,981
1,976
Total Interest Expense
35,882
34,038
33,239
31,388
29,129
69,920
52,554
Net Interest Income
24,996
24,631
25,314
25,421
25,872
49,627
54,439
Provision for (Recovery of) Credit
Losses
600
750
(250
)
(600
)
50
1,350
675
Net Interest Income After Provision for
Credit Losses
24,396
23,881
25,564
26,021
25,822
48,277
53,764
Noninterest Income
Customer Service Fees
366
342
359
379
368
708
717
Net Gain (Loss) on Sales of Securities
320
93
(27
)
—
50
413
(6
)
Letter of Credit Fees
387
316
418
315
379
703
1,013
Debit Card Interchange Fees
155
141
152
150
155
296
293
Bank-Owned Life Insurance
312
301
268
252
238
613
472
FHLB Prepayment Income
—
—
—
493
—
—
299
Other Income
223
357
239
137
225
580
570
Total Noninterest Income
1,763
1,550
1,409
1,726
1,415
3,313
3,358
Noninterest Expense
Salaries and Employee Benefits
9,675
9,433
9,615
9,519
8,589
19,108
17,404
Occupancy and Equipment
1,092
1,057
1,062
1,101
1,075
2,149
2,284
FDIC Insurance Assessment
725
875
1,050
1,075
900
1,600
1,565
Data Processing
472
412
424
392
401
884
758
Professional and Consulting Fees
852
889
782
715
829
1,741
1,584
Derivative Collateral Fees
528
486
573
543
404
1,014
784
Information Technology and
Telecommunications
812
796
812
683
711
1,608
1,394
Marketing and Advertising
317
322
324
222
321
639
583
Intangible Asset Amortization
8
9
9
9
34
17
82
Other Expense
1,058
910
1,089
978
1,010
1,968
1,905
Total Noninterest Expense
15,539
15,189
15,740
15,237
14,274
30,728
28,343
Income Before Income Taxes
10,620
10,242
11,233
12,510
12,963
20,862
28,779
Provision for Income Taxes
2,505
2,411
2,360
2,881
3,147
4,916
7,321
Net Income
8,115
7,831
8,873
9,629
9,816
15,946
21,458
Preferred Stock Dividends
(1,014
)
(1,013
)
(1,014
)
(1,013
)
(1,014
)
(2,027
)
(2,027
)
Net Income Available to Common
Shareholders
$
7,101
$
6,818
$
7,859
$
8,616
$
8,802
$
13,919
$
19,431
Earnings Per Share
Basic
$
0.26
$
0.25
$
0.28
$
0.31
$
0.32
$
0.51
$
0.70
Diluted
0.26
0.24
0.28
0.30
0.31
0.50
0.69
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
June 30, 2024
March 31, 2024
June 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
$
81,672
$
922
4.54
%
$
75,089
$
829
4.44
%
$
59,963
$
587
3.93
%
Investment Securities:
Taxable Investment Securities
641,469
7,861
4.93
638,509
7,600
4.79
568,143
6,000
4.24
Tax-Exempt Investment Securities (1)
31,550
401
5.11
31,745
400
5.07
27,081
300
4.44
Total Investment Securities
673,019
8,262
4.94
670,254
8,000
4.80
595,224
6,300
4.24
Loans (1)(2)
3,771,768
51,592
5.50
3,729,355
49,858
5.38
3,716,534
48,066
5.19
Federal Home Loan Bank Stock
19,461
394
8.15
18,058
343
7.64
23,330
456
7.84
Total Interest Earning Assets
4,545,920
61,170
5.41
%
4,492,756
59,030
5.28
%
4,395,051
55,409
5.06
%
Noninterest Earning Assets
100,597
100,082
88,611
Total Assets
$
4,646,517
$
4,592,838
$
4,483,662
Interest Bearing Liabilities:
Deposits:
Interest Bearing Transaction Deposits
$
732,923
$
8,270
4.54
%
$
732,186
$
7,693
4.23
%
$
683,034
$
5,918
3.48
%
Savings and Money Market Deposits
914,397
9,459
4.16
896,844
8,781
3.94
861,947
7,048
3.28
Time Deposits
360,691
3,850
4.30
317,595
3,167
4.01
269,439
1,702
2.53
Brokered Deposits
976,467
10,039
4.13
1,014,197
10,549
4.18
896,989
8,330
3.72
Total Interest Bearing Deposits
2,984,478
31,618
4.26
2,960,822
30,190
4.10
2,711,409
22,998
3.40
Federal Funds Purchased
61,151
853
5.61
21,824
304
5.60
210,677
2,761
5.26
Notes Payable
13,750
296
8.64
13,750
295
8.64
13,750
285
8.33
FHLB Advances
306,396
2,125
2.79
318,648
2,258
2.85
242,714
2,092
3.46
Subordinated Debentures
79,424
990
5.02
79,328
991
5.02
79,041
993
5.04
Total Interest Bearing Liabilities
3,445,199
35,882
4.19
%
3,394,372
34,038
4.03
%
3,257,591
29,129
3.59
%
Noninterest Bearing
Liabilities:
Noninterest Bearing Transaction
Deposits
691,891
701,175
755,040
Other Noninterest Bearing Liabilities
73,842
69,043
64,684
Total Noninterest Bearing Liabilities
765,733
770,218
819,724
Shareholders' Equity
435,585
428,248
406,347
Total Liabilities and Shareholders'
Equity
$
4,646,517
$
4,592,838
$
4,483,662
Net Interest Income / Interest Rate
Spread
25,288
1.22
%
24,992
1.25
%
26,280
1.47
%
Net Interest Margin (3)
2.24
%
2.24
%
2.40
%
Taxable Equivalent Adjustment:
Tax-Exempt Investment Securities and
Loans
(292
)
(361
)
(408
)
Net Interest Income
$
24,996
$
24,631
$
25,872
____________________________________
(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 Six Months
Ended
June 30, 2024
June 30, 2023
Average
Interest
Yield/
Average
Interest
Yield/
(dollars in thousands)
Balance
& Fees
Rate
Balance
& Fees
Rate
Interest Earning Assets:
Cash Investments
$
78,380
$
1,751
4.49
%
$
61,599
$
1,034
3.38
%
Investment Securities:
Taxable Investment Securities
639,989
15,461
4.86
571,176
11,958
4.22
Tax-Exempt Investment Securities (1)
31,648
801
5.09
28,435
629
4.46
Total Investment Securities
671,637
16,262
4.87
599,611
12,587
4.23
Loans (1)(2)
3,750,561
101,450
5.44
3,673,728
93,332
5.12
Federal Home Loan Bank Stock
18,760
737
7.90
24,639
828
6.77
Total Interest Earning Assets
4,519,338
120,200
5.35
%
4,359,577
107,781
4.99
%
Noninterest Earning Assets
100,340
85,087
Total Assets
$
4,619,678
$
4,444,664
Interest Bearing Liabilities:
Deposits:
Interest Bearing Transaction Deposits
$
733,714
$
15,963
4.38
%
$
570,964
$
8,698
3.07
%
Savings and Money Market Deposits
905,620
18,240
4.05
952,865
13,547
2.87
Time Deposits
339,143
7,017
4.16
258,865
2,771
2.16
Brokered Deposits
995,332
20,588
4.16
820,651
14,356
3.53
Total Interest Bearing Deposits
2,973,809
61,808
4.18
2,603,345
39,372
3.05
Federal Funds Purchased
41,487
1,157
5.61
312,329
7,705
4.97
Notes Payable
13,750
591
8.64
13,750
548
8.03
FHLB Advances
312,522
4,383
2.82
185,785
2,953
3.21
Subordinated Debentures
79,376
1,981
5.02
78,994
1,976
5.05
Total Interest Bearing Liabilities
3,420,944
69,920
4.11
%
3,194,203
52,554
3.32
%
Noninterest Bearing
Liabilities:
Noninterest Bearing Transaction
Deposits
695,373
786,009
Other Noninterest Bearing Liabilities
71,445
59,504
Total Noninterest Bearing Liabilities
766,818
845,513
Shareholders' Equity
431,916
404,948
Total Liabilities and Shareholders'
Equity
$
4,619,678
$
4,444,664
Net Interest Income / Interest Rate
Spread
50,280
1.24
%
55,227
1.67
%
Net Interest Margin (3)
2.24
%
2.55
%
Taxable Equivalent Adjustment:
Tax-Exempt Investment Securities and
Loans
(653
)
(788
)
Net Interest Income
$
49,627
$
54,439
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 Six Months
Ended
June 30,
March 31,
December 31,
September 30,
June 30,
June 30,
June 30,
(dollars in thousands)
2024
2024
2023
2023
2023
2024
2023
Allowance for Credit Losses
Balance at Beginning of Period
$
51,347
$
50,494
$
50,585
$
50,701
$
50,148
$
50,494
$
47,996
Impact of Adopting CECL
—
—
—
—
—
—
650
Provision for Credit Losses
600
850
—
—
550
1,450
2,050
Charge-offs
(10
)
(2
)
(95
)
(122
)
(3
)
(12
)
(7
)
Recoveries
12
5
4
6
6
17
12
Net Charge-offs
$
2
$
3
$
(91
)
$
(116
)
$
3
$
5
$
5
Balance at End of Period
51,949
51,347
50,494
50,585
50,701
51,949
50,701
Allowance for Credit Losses to Total
Loans
1.37
%
1.36
%
1.36
%
1.36
%
1.36
%
1.37
%
1.36
%
As of and for the Three Months
Ended
As of and for the Six Months
Ended
June 30,
March 31,
December 31,
September 30,
June 30,
June 30,
June 30,
(dollars in thousands)
2024
2024
2023
2023
2023
2024
2023
Provision for Credit Losses on Loans
$
600
$
850
$
—
$
—
$
550
$
1,450
$
2,050
Recovery of Credit Losses for Off-Balance
Sheet Credit Exposures
—
(100
)
(250
)
(600
)
(500
)
(100
)
(1,375
)
Provision for (Recovery of) Credit
Losses
$
600
$
750
$
(250
)
$
(600
)
$
50
$
1,350
$
675
As of and for the Three Months
Ended
June 30,
March 31,
December 31,
September 30,
June 30,
(dollars in thousands)
2024
2024
2023
2023
2023
Selected Asset Quality Data
Loans 30-89 Days Past Due
$
502
$
—
$
15,110
$
11
$
—
Loans 30-89 Days Past Due to Total
Loans
0.01
%
0.00
%
0.41
%
0.00
%
0.00
%
Nonperforming Loans
$
678
$
249
$
919
$
749
$
662
Nonperforming Loans to Total Loans
0.02
%
0.01
%
0.02
%
0.02
%
0.02
%
Nonaccrual Loans to Total Loans
0.02
0.01
0.02
0.02
0.02
Nonaccrual Loans and Loans Past Due 90
Days and Still Accruing to Total Loans
0.02
0.01
0.02
0.02
0.02
Foreclosed Assets
$
—
$
20
$
—
$
—
$
116
Nonperforming Assets (1)
678
269
919
749
778
Nonperforming Assets to Total Assets
(1)
0.01
%
0.01
%
0.02
%
0.02
%
0.02
%
Net Loan Charge-Offs (Annualized) to
Average Loans
0.00
0.00
0.01
0.01
0.00
Watchlist Risk Rating Loans
$
30,436
$
21,624
$
26,485
$
26,877
$
27,215
Substandard Risk Rating Loans
33,908
33,829
35,858
35,621
33,821
____________________________________
(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 Six Months
Ended
June 30,
March 31,
December 31,
September 30,
June 30,
June 30,
June 30,
(dollars in thousands)
2024
2024
2023
2023
2023
2024
2023
Pre-Provision Net Revenue
Noninterest Income
$
1,763
$
1,550
$
1,409
$
1,726
$
1,415
$
3,313
$
3,358
Less: (Gain) Loss on Sales of
Securities
(320
)
(93
)
27
—
(50
)
(413
)
6
Less: FHLB Advance Prepayment Income
—
—
—
(493
)
—
—
(299
)
Total Operating Noninterest Income
1,443
1,457
1,436
1,233
1,365
2,900
3,065
Plus: Net Interest Income
24,996
24,631
25,314
25,421
25,872
49,627
54,439
Net Operating Revenue
$
26,439
$
26,088
$
26,750
$
26,654
$
27,237
$
52,527
$
57,504
Noninterest Expense
$
15,539
$
15,189
$
15,740
$
15,237
$
14,274
$
30,728
$
28,343
Total Operating Noninterest Expense
$
15,539
$
15,189
$
15,740
$
15,237
$
14,274
$
30,728
$
28,343
Pre-Provision Net Revenue
$
10,900
$
10,899
$
11,010
$
11,417
$
12,963
$
21,799
$
29,161
Plus:
Non-Operating Revenue Adjustments
320
93
(27
)
493
50
413
293
Less:
Provision (Recovery of) for Credit
Losses
600
750
(250
)
(600
)
50
1,350
675
Provision for Income Taxes
2,505
2,411
2,360
2,881
3,147
4,916
7,321
Net Income
$
8,115
$
7,831
$
8,873
$
9,629
$
9,816
$
15,946
$
21,458
Average Assets
$
4,646,517
$
4,592,838
$
4,567,446
$
4,504,937
$
4,483,662
$
4,619,678
$
4,444,644
Pre-Provision Net Revenue Return on
Average Assets
0.94
%
0.95
%
0.96
%
1.01
%
1.16
%
0.95
%
1.32
%
Core Net Interest Margin
Net Interest Income (Tax-equivalent
Basis)
$
25,288
$
24,992
$
25,683
$
25,822
$
26,280
$
50,280
$
55,227
Less: Loan Fees
(767
)
(608
)
(751
)
(914
)
(941
)
(1,374
)
(1,939
)
Core Net Interest Income
$
24,521
$
24,384
$
24,932
$
24,908
$
25,339
$
48,906
$
53,288
Average Interest Earning Assets
$
4,545,920
$
4,492,756
$
4,480,428
$
4,416,424
$
4,395,050
$
4,519,338
$
4,359,577
Core Net Interest Margin
2.17
%
2.18
%
2.21
%
2.24
%
2.31
%
2.18
%
2.46
%
Efficiency Ratio
Noninterest Expense
$
15,539
$
15,189
$
15,740
$
15,237
$
14,274
$
30,728
$
28,343
Less: Amortization of Intangible
Assets
(8
)
(9
)
(9
)
(9
)
(34
)
(17
)
(82
)
Adjusted Noninterest Expense
$
15,531
$
15,180
$
15,731
$
15,228
$
14,240
$
30,711
$
28,261
Net Interest Income
$
24,996
$
24,631
$
25,314
$
25,421
$
25,872
$
49,627
$
54,439
Noninterest Income
1,763
1,550
1,409
1,726
1,415
3,313
3,358
Less: Gain (Loss) on Sales of
Securities
(320
)
(93
)
27
—
(50
)
(413
)
6
Adjusted Operating Revenue
$
26,439
$
26,088
$
26,750
$
27,147
$
27,237
$
52,527
$
57,803
Efficiency Ratio
58.7
%
58.2
%
58.8
%
56.1
%
52.3
%
58.5
%
48.9
%
Bridgewater Bancshares, Inc. and
Subsidiaries
Non-GAAP Financial Measures
(dollars in thousands)
(unaudited)
For the Three Months
Ended
For the Six Months
Ended
June 30,
March 31,
December 31,
September 30,
June 30,
June 30,
June 30,
(dollars in thousands)
2024
2024
2023
2023
2023
2024
2023
Tangible Common Equity and Tangible
Common Equity/Tangible Assets
Total Shareholders' Equity
$
439,241
$
433,611
$
425,515
$
415,960
$
409,126
Less: Preferred Stock
(66,514
)
(66,514
)
(66,514
)
(66,514
)
(66,514
)
Total Common Shareholders' Equity
372,727
367,097
359,001
349,446
342,612
Less: Intangible Assets
(2,797
)
(2,806
)
(2,814
)
(2,823
)
(2,832
)
Tangible Common Equity
$
369,930
$
364,291
$
356,187
$
346,623
$
339,780
Total Assets
$
4,687,035
$
4,723,109
$
4,611,990
$
4,557,070
$
4,603,185
Less: Intangible Assets
(2,797
)
(2,806
)
(2,814
)
(2,823
)
(2,832
)
Tangible Assets
$
4,684,238
$
4,720,303
$
4,609,176
$
4,554,247
$
4,600,353
Tangible Common Equity/Tangible Assets
7.90
%
7.72
%
7.73
%
7.61
%
7.39
%
Tangible Book Value Per Share
Book Value Per Common Share
$
13.63
$
13.30
$
12.94
$
12.47
$
12.25
Less: Effects of Intangible Assets
(0.10
)
(0.10
)
(0.10
)
(0.10
)
(0.10
)
Tangible Book Value Per Common Share
$
13.53
$
13.20
$
12.84
$
12.37
$
12.15
Return on Average Tangible Common
Equity
Net Income Available to Common
Shareholders
$
7,101
$
6,818
$
7,859
$
8,616
$
8,802
$
13,919
$
19,431
Average Shareholders' Equity
$
435,585
$
428,248
$
417,789
$
414,047
$
406,347
$
431,916
$
404,948
Less: Average Preferred Stock
(66,514
)
(66,514
)
(66,514
)
(66,514
)
(66,514
)
(66,514
)
(66,514
)
Average Common Equity
369,071
361,734
351,275
347,533
339,833
365,402
338,434
Less: Effects of Average Intangible
Assets
(2,802
)
(2,811
)
(2,819
)
(2,828
)
(2,846
)
(2,806
)
(2,870
)
Average Tangible Common Equity
$
366,269
$
358,923
$
348,456
$
344,705
$
336,987
$
362,596
$
335,564
Return on Average Tangible Common
Equity
7.80
%
7.64
%
8.95
%
9.92
%
10.48
%
7.72
%
11.68
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240723536911/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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