Bridgewater Bancshares, Inc. (Nasdaq: BWB) (the Company), the parent company of Bridgewater Bank (the Bank), today announced net income of $9.8 million for the second quarter of 2023, compared to $11.6 million for the first quarter of 2023, and $12.9 million for the second quarter of 2022. Earnings per diluted common share for the second quarter of 2023 were $0.31, compared to $0.37 per diluted common share for the first quarter of 2023, and $0.41 per diluted common share for the same period in 2022.
“Bridgewater’s second quarter results were highlighted by several improving financial trends as we continue to manage the business through a challenging banking environment,” said Chairman, Chief Executive Officer, and President, Jerry Baack. “The overall composition of our balance sheet improved with a strong inflow of deposits, including growth in core deposits, and a reduction in overall borrowings. While our net interest margin remained under pressure, we saw the pace of compression slow noticeably on a month-to-month basis during the quarter. In addition, noninterest expense was again well controlled and asset quality remained superb.”
“During the quarter, our teams maintained their focus on supporting and growing our client base, both by proactively engaging with our existing clients and cultivating new relationships across the Twin Cities market. In July, we also relocated our downtown Minneapolis branch to an enhanced location with more space to better serve our clients. We believe our proven ability to develop strong client relationships, combined with encouraging financial trends, will continue to drive success moving forward.”
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, | |||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||
Per Common Share Data | |||||||||||||||||
Basic Earnings Per Share | $ | 0.32 | $ | 0.38 | $ | 0.43 | $ | 0.70 | $ | 0.83 | |||||||
Diluted Earnings Per Share | 0.31 | 0.37 | 0.41 | 0.69 | 0.80 | ||||||||||||
Book Value Per Share | 12.25 | 12.05 | 11.14 | 12.25 | 11.14 | ||||||||||||
Tangible Book Value Per Share (1) | 12.15 | 11.95 | 11.03 | 12.15 | 11.03 | ||||||||||||
Basic Weighted Average Shares Outstanding | 27,886,425 | 27,726,894 | 27,839,260 | 27,807,100 | 27,980,749 | ||||||||||||
Diluted Weighted Average Shares Outstanding | 28,198,739 | 28,490,046 | 28,803,842 | 28,350,705 | 28,991,780 | ||||||||||||
Shares Outstanding at Period End | 27,973,995 | 27,845,244 | 27,677,372 | 27,973,995 | 27,677,372 | ||||||||||||
Selected Performance Ratios | |||||||||||||||||
Return on Average Assets (Annualized) | 0.88 | % | 1.07 | % | 1.38 | % | 0.97 | % | 1.40 | % | |||||||
Pre-Provision Net Revenue Return on Average Assets (Annualized) (1) | 1.16 | 1.49 | 2.19 | 1.32 | 2.16 | ||||||||||||
Return on Average Shareholders' Equity (Annualized) | 9.69 | 11.70 | 13.55 | 10.69 | 13.27 | ||||||||||||
Return on Average Tangible Common Equity (Annualized) (1) | 10.48 | 12.90 | 15.26 | 11.68 | 14.91 | ||||||||||||
Yield on Interest Earning Assets (2) | 5.06 | 4.91 | 4.16 | 4.99 | 4.15 | ||||||||||||
Yield on Total Loans, Gross (2) | 5.19 | 5.06 | 4.45 | 5.12 | 4.45 | ||||||||||||
Cost of Total Deposits | 2.66 | 2.01 | 0.46 | 2.34 | 0.44 | ||||||||||||
Cost of Funds | 2.91 | 2.41 | 0.63 | 2.66 | 0.61 | ||||||||||||
Net Interest Margin (2) | 2.40 | 2.72 | 3.58 | 2.55 | 3.59 | ||||||||||||
Core Net Interest Margin (1)(2) | 2.31 | 2.62 | 3.34 | 2.47 | 3.34 | ||||||||||||
Efficiency Ratio (1) | 52.7 | 46.2 | 40.2 | 49.3 | 41.2 | ||||||||||||
Noninterest Expense to Average Assets (Annualized) | 1.29 | 1.31 | 1.47 | 1.30 | 1.51 | ||||||||||||
Loan to Deposit Ratio | 104.4 | 108.0 | 100.7 | ||||||||||||||
Core Deposits to Total Deposits (3) | 70.3 | 72.4 | 82.9 | ||||||||||||||
Tangible Common Equity to Tangible Assets (1) | 7.39 | 7.23 | 7.87 | ||||||||||||||
Capital Ratios (Bank Only) (4) | |||||||||||||||||
Tier 1 Leverage Ratio | 10.69 | % | 10.61 | % | 11.43 | % | |||||||||||
Common Equity Tier 1 Risk-based Capital Ratio | 11.66 | 11.37 | 11.53 | ||||||||||||||
Tier 1 Risk-based Capital Ratio | 11.66 | 11.37 | 11.53 | ||||||||||||||
Total Risk-based Capital Ratio | 12.91 | 12.62 | 12.74 | ||||||||||||||
Capital Ratios (Consolidated) (4) | |||||||||||||||||
Tier 1 Leverage Ratio | 9.47 | % | 9.41 | % | 10.33 | % | |||||||||||
Common Equity Tier 1 Risk-based Capital Ratio | 8.72 | 8.48 | 8.50 | ||||||||||||||
Tier 1 Risk-based Capital Ratio | 10.33 | 10.08 | 10.29 | ||||||||||||||
Total Risk-based Capital Ratio | 13.50 | 13.25 | 13.98 | ||||||||||||||
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(1) | Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details. |
(2) | Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of 21%. |
(3) | Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000. |
(4) | Preliminary data. Current period subject to change prior to filings with applicable regulatory agencies. |
Selected Financial Data | |||||||||||||||
