Q3 2025 Bridgewater Bancshares Inc Earnings Call Transcript
Key Points
- Bridgewater Bancshares Inc (BWB) reported strong core deposit growth with balances up 11.5% annualized, demonstrating effective market share acquisition.
- The company achieved a 6.6% annualized loan growth during the third quarter, with expansion across multiple asset classes, including affordable housing.
- Net interest income increased by $1.6 million, supported by a one basis point expansion in net interest margin to 2.63%.
- Asset quality remains robust with non-performing assets at low levels and net charge-offs at just 0.03% of loans.
- Tangible book value per share increased 20% annualized in the third quarter, contributing to shareholder value.
- The issuance of $80 million in subordinated debt at 7.625% created a 6 basis point net drag on the margin in the third quarter.
- Fee income declined in the third quarter due to the absence of swap fee income, highlighting the volatility of these fees.
- Non-interest expenses were elevated due to redundant expenses related to the core conversion and increased marketing expenses.
- The company experienced a slowdown in loan origination activity in the third quarter, partly due to deal closings being pushed to the fourth quarter.
- A multi-family loan migrated from special mention to substandard, indicating some credit risk within the portfolio.
Good morning and welcome to the Bridgewater Bancshares 2025 third quarter earnings results call. My name is Megan and I will be your conference operator today. [Operator Instruction] At this time, I would like to introduce Justin Horstman, Vice President of Investor Relations, to begin the conference call. Please go ahead.
Thank you, Megan, and good morning everyone. Joining me on today's call are Jerry Baack, Chairman and Chief Executive Officer, Joe Chybowski, President and Chief Financial Officer, Nick Place, Chief Banking Officer, Katie Morrell, Chief Credit Officer, and Jeff Shellberg, Deputy Chief Credit Officer. In just a few moments, we will provide an overview of our 2025 third quarter financial results. We'll be referencing a slide presentation that is available on the investor relations section of Bridgewater's website, investors.bridgewaterbankemail.com.
Following our opening remarks, we will open the call for questions.
During today's presentation
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
