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Bridgewater Bancshares, Inc. Announces Fourth Quarter 2023 Net Income of $8.9 Million, $0.28 Diluted Earnings Per Common Share

Fourth Quarter 2023 Highlights

  • Deposit growth of $34.4 million, or 3.7% annualized, from the third quarter of 2023, exceeded gross loan growth which remained relatively stable from the third quarter of 2023, lowering the loan-to-deposit ratio to 100.4%.
  • Net interest margin (on a fully tax-equivalent basis) of 2.27%, compared to 2.32% in the third quarter of 2023.
  • No provision for credit losses on loans was recorded in the fourth quarter of 2023. The allowance for credit losses on loans to total loans was 1.36% at December 31, 2023 and September 30, 2023, respectively.
  • Nonperforming assets to total assets of 0.02% at December 31, 2023 and September 30, 2023.
  • Tangible book value per share(1) of $12.84 at December 31, 2023, an increase of $0.46, or 14.9% annualized, compared to $12.37 at September 30, 2023.
  • Repurchased 423,749 shares of common stock at a weighted average price of $10.72, for a total of $4.5 million.
  • Early adopted ASU 2023-02 applying the modified retrospective method which reclassified noninterest expense to income tax expense effective January 1, 2023, which may impact comparability to prior 2023 filings.

Annual 2023 Highlights

  • Diluted earnings per common share for the year ended December 31, 2023 were $1.27, compared to $1.72 for the year ended December 31, 2022.
  • Asset growth of 6.1% compared to December 31, 2022 exceeded 2023 full-year noninterest expense growth of 4.8% compared to the full year of 2022.
  • Deposit growth of $293.4 million, or 8.6%, in 2023 exceeded gross loan growth of $154.8 million, or 4.3%.
  • Net loan charge-offs (recoveries) as a percentage of average loans were 0.01% for the year ended December 31, 2023, compared to (0.01)% for the year ended December 31, 2022.
  • Tangible book value per share(1) increased $1.15, or 9.8%, to $12.84 at December 31, 2023, compared to $11.69 at December 31, 2022.
  • Common Equity Tier 1 Risk-Based Capital Ratio was 9.16% at December 31, 2023, compared to 8.40% at December 31, 2022.

(1) Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.

Bridgewater Bancshares, Inc. (Nasdaq: BWB) (the Company), the parent company of Bridgewater Bank (the Bank), today announced net income of $8.9 million for the fourth quarter of 2023, compared to $9.6 million for the third quarter of 2023, and $13.7 million for the fourth quarter of 2022. Earnings per diluted common share were $0.28 for the fourth quarter of 2023, compared to $0.30 for the third quarter of 2023, and $0.45 for the fourth quarter of 2022.

“Bridgewater finished 2023 strong with the continuation of several positive trends as net interest margin continued to stabilize, deposit growth outpaced loan growth, and asset quality remained superb,” said Chairman, Chief Executive Officer, and President, Jerry Baack. “We also returned capital to shareholders by opportunistically repurchasing shares of common stock during the fourth quarter, while tangible book value per share increased for the 28th consecutive quarter.

“As we enter 2024, we are optimistic about our outlook as our balance sheet is well-positioned to benefit as the yield curve normalizes. In addition, our loan pipeline has begun to grow once again as loan demand has started to increase. By moderating our loan growth and reducing our loan-to-deposit ratio over the past few quarters, we believe we can continue to gain market share by deploying capital into more profitable loan growth as the interest rate environment improves.”

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,

 

 

 

2023

 

2023

 

2022

 

 

2023

 

2022

 

Per Common Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Share

 

$

0.28

 

$

0.31

 

$

0.46

 

 

$

1.29

 

$

1.78

 

Diluted Earnings Per Share

 

 

0.28

 

 

0.30

 

 

0.45

 

 

 

1.27

 

 

1.72

 

Book Value Per Share

 

 

12.94

 

 

12.47

 

 

11.80

 

 

 

12.94

 

 

11.80

 

Tangible Book Value Per Share (1)

 

 

12.84

 

 

12.37

 

 

11.69

 

 

 

12.84

 

 

11.69

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Assets (2)

 

 

0.77

%

 

0.85

%

 

1.28

%

 

 

0.89

%

 

1.38

%

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

 

 

0.96

 

 

1.01

 

 

1.82

 

 

 

1.15

 

 

2.06

 

Return on Average Shareholders' Equity (2)

 

 

8.43

 

 

9.23

 

 

14.06

 

 

 

9.73

 

 

13.90

 

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

 

 

8.95

 

 

9.92

 

 

15.86

 

 

 

10.53

 

 

15.69

 

Net Interest Margin (3)

 

 

2.27

 

 

2.32

 

 

3.16

 

 

 

2.42

 

 

3.45

 

Core Net Interest Margin (1)(3)

 

 

2.21

 

 

2.24

 

 

3.05

 

 

 

2.34

 

 

3.27

 

Cost of Total Deposits

 

 

3.19

 

 

2.99

 

 

1.31

 

 

 

2.73

 

 

0.75

 

Cost of Funds

 

 

3.23

 

 

3.10

 

 

1.67

 

 

 

2.92

 

 

0.99

 

Efficiency Ratio (1)

 

 

58.8

 

 

56.1

 

 

43.8

 

 

 

53.0

 

 

41.5

 

Noninterest Expense to Average Assets (2)

 

 

1.37

 

 

1.34

 

 

1.42

 

 

 

1.32

 

 

1.46

 

Tangible Common Equity to Tangible Assets (1)

 

 

7.73

 

 

7.61

 

 

7.48

 

 

 

7.73

 

 

7.48

 

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

 

 

9.16

 

 

9.07

 

 

8.40

 

 

 

9.16

 

 

8.40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet and Asset Quality (dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

4,611,990

 

$

4,557,070

 

$

4,345,662

 

 

$

4,611,990

 

$

4,345,662

 

Total Loans, Gross

 

 

3,724,282

 

 

3,722,271

 

 

3,569,446

 

 

 

3,724,282

 

 

3,569,446

 

Deposits

 

 

3,709,948

 

 

3,675,509

 

 

3,416,543

 

 

 

3,709,948

 

 

3,416,543

 

Loan to Deposit Ratio

 

 

100.4

%

 

101.3

%

 

104.5

%

 

 

100.4

%

 

104.5

%

Net Loan Charge-Offs (Recoveries) to Average Loans (2)

 

 

0.01

 

 

0.01

 

 

0.00

 

 

 

0.01

 

 

(0.01

)

Nonperforming Assets to Total Assets (5)

 

 

0.02

 

 

0.02

 

 

0.01

 

 

 

0.02

 

 

0.01

 

Allowance for Credit Losses to Total Loans

 

 

1.36

 

 

1.36

 

 

1.34

 

 

 

1.36

 

 

1.34

 

__________________________

(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 2023 was 2.27%, a five basis point decline from 2.32% in the third quarter of 2023 and an 89 basis point decline from 3.16% in the fourth quarter of 2022. Core net interest margin (on a fully tax-equivalent basis), a non-GAAP financial measure which excludes the impact of loan fees, and prior to 2023, PPP balances, interest, and fees, was 2.21% for the fourth quarter of 2023, a three basis point decline from 2.24% in the third quarter of 2023, and an 84 basis point decline from 3.05% in the fourth quarter of 2022.

  • The linked-quarter and year-over-year declines in the margin were primarily due to higher funding costs, offset partially by higher earning asset yields.

Net interest income was $25.3 million for the fourth quarter of 2023, a decrease of $107,000 from $25.4 million in the third quarter of 2023, and a decrease of $7.6 million from $32.9 million in the fourth quarter of 2022.

  • The linked-quarter and year-over year decreases in net interest income were primarily due to higher rates paid on deposits in the rising interest rate environment.
  • Average interest earning assets were $4.48 billion for the fourth quarter of 2023, an increase of $64.0 million, or 1.4%, from $4.42 billion for the third quarter of 2023, and an increase of $302.8 million, or 7.2%, from $4.18 billion for the fourth quarter of 2022. The linked-quarter increase in average interest earning assets was primarily due to an increase in cash and purchases of investment securities. The year-over-year increase in average interest earning assets was primarily due to growth in the loan portfolio, purchases of investment securities, and an increase in cash.

Interest income was $58.6 million for the fourth quarter of 2023, an increase of $1.7 million from $56.8 million in the third quarter of 2023, and an increase of $9.7 million from $48.9 million in the fourth quarter of 2022.

  • The yield on interest earning assets (on a fully tax-equivalent basis) was 5.22% in the fourth quarter of 2023, compared to 5.14% in the third quarter of 2023 and 4.67% in the fourth quarter of 2022.
  • The linked-quarter increase in the yield on interest earning assets was primarily due to the purchase of higher yielding securities and loans repricing at yields accretive to the existing portfolio.
  • The year-over-year increase in the yield on interest earning assets was primarily due to 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 5.33% in the fourth quarter of 2023, which was seven basis points higher than 5.26% in the third quarter of 2023, and 46 basis points higher than 4.87% in the fourth quarter of 2022.
  • While loan fees have historically maintained a relatively stable contribution to the aggregate loan yield, the recent periods saw fewer loan prepayments, which historically has accelerated the recognition of loan fees. Despite the overall decrease in fee recognition, the Company is encouraged that 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

 

 

December 31, 2023

 

 

September 30, 2023

 

 

June 30, 2023

 

 

March 31, 2023

 

 

December 31, 2022

 

 

Interest

 

5.25

%

 

5.16

%

 

5.09

%

 

4.95

%

 

4.75

%

 

Fees

 

0.08

 

 

0.10

 

 

0.10

 

 

0.11

 

 

0.12

 

 

Yield on Loans

 

5.33

%

 

5.26

%

 

5.19

%

 

5.06

%

 

4.87

%

 

Interest expense was $33.2 million for the fourth quarter of 2023, an increase of $1.9 million from $31.4 million in the third quarter of 2023, and an increase of $17.3 million from $16.0 million in the fourth quarter of 2022.

  • The cost of interest bearing liabilities was 3.97% in the fourth quarter of 2023, compared to 3.81% in the third quarter of 2023 and 2.22% in the fourth quarter of 2022.
  • The linked-quarter increase in the cost of interest bearing liabilities was primarily due to higher rates paid on deposits in the rising interest rate environment.
  • The year-over-year increase in the cost of interest bearing liabilities was primarily due to the rapid increase in market interest rates that occurred between the periods, which impacted all funding sources.

Interest expense on deposits was $29.4 million for the fourth quarter of 2023, an increase of $2.2 million from $27.2 million in the third quarter of 2023, and an increase of $18.7 million from $10.8 million in the fourth quarter of 2022.

  • The cost of total deposits was 3.19% in the fourth quarter of 2023, compared to 2.99% in the third quarter of 2023 and 1.31% in the fourth quarter of 2022.
  • The linked-quarter increase in the cost of total deposits was primarily due to client demands for higher interest rates and increased competition for 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 $0 for both the fourth quarter of 2023 and the third quarter of 2023, compared to $1.5 million for the fourth quarter of 2022.

  • No provision for credit losses on loans was recorded in the fourth quarter of 2023 due to a more managed pace of loan growth.
  • The allowance for credit losses on loans to total loans was 1.36% at both December 31, 2023 and September 30, 2023, compared to 1.34% at December 31, 2022.

The provision for credit losses for off-balance sheet credit exposures was a negative provision of $250,000 for the fourth quarter of 2023, compared to a negative provision of $600,000 for the third quarter of 2023 and zero for the fourth quarter of 2022.

  • The negative provision during the quarter was due to a reduction in outstanding unfunded commitments primarily attributable to the migration to funded loans, as well as a moderation in volume of newly originated projects with unfunded commitments.

Noninterest Income

Noninterest income was $1.4 million for the fourth quarter of 2023, a decrease of $317,000 from $1.7 million for the third quarter of 2023 and a decrease of $329,000 from $1.7 million for the fourth quarter of 2022.

  • The linked-quarter decrease was primarily due to $493,000 of FHLB prepayment income recognized in the previous quarter which did not reoccur, offset partially by higher letter of credit fees and other income.
  • The year-over-year decrease was primarily due to lower other income.

Noninterest Expense

Noninterest expense was $15.7 million for the fourth quarter of 2023, an increase of $503,000 from $15.2 million for the third quarter of 2023 and an increase of $537,000 from $15.2 million for the fourth quarter of 2022.

  • The linked-quarter increase was primarily due to increases in salaries and employee benefits, information technology and telecommunications, and marketing and advertising.
  • The year-over-year increase was primarily attributable to industry-wide increases in the FDIC insurance assessment, higher professional and consulting fees and information technology and telecommunications, offset partially by decreases in salaries and employee benefits and occupancy and equipment.
  • The efficiency ratio, a non-GAAP financial measure, was 58.8% for the fourth quarter of 2023, compared to 56.1% for the third quarter of 2023, and 43.8% for the fourth quarter of 2022.
  • The Company had 255 full-time equivalent employees at both December 31, 2023 and September 30, 2023, compared to 246 employees at December 31, 2022.

Income Taxes

The effective combined federal and state income tax rate for the fourth quarter of 2023 was 21.0%, a decrease from 23.0% for the third quarter of 2023 and 23.4% for the fourth quarter of 2022. The effective combined federal and state rate for the years ended December 31, 2023 and 2022 was 23.9% and 25.5%, respectively.

  • The linked-quarter decrease in the effective tax rate was primarily due to the delivery of two tax credits that occurred within the fourth quarter.
  • The Company early adopted ASU 2023-02 applying the modified retrospective method which reclassified noninterest expense to income tax expense effective January 1, 2023.

Balance Sheet

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

December 31,

2023

 

September 30,

2023

 

June 30,

2023

 

March 31,

2023

 

December 31,

2022

 

Commercial

 

$

464,061

 

 

$

459,854

 

 

$

460,061

 

 

$

455,156

 

 

$

436,393

 

 

Construction and Land Development

 

 

232,804

 

 

 

294,818

 

 

 

351,069

 

 

 

312,277

 

 

 

295,554

 

 

1 - 4 Family Construction

 

 

65,087

 

 

 

64,463

 

 

 

69,648

 

 

 

85,797

 

 

 

70,242

 

 

Real Estate Mortgage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 - 4 Family Mortgage

 

 

402,396

 

 

 

404,716

 

 

 

400,708

 

 

 

380,210

 

 

 

355,474

 

 

Multifamily

 

 

1,388,541

 

 

 

1,378,669

 

 

 

1,314,524

 

 

 

1,320,081

 

 

 

1,306,738

 

 

CRE Owner Occupied

 

 

175,783

 

 

 

159,485

 

 

 

159,088

 

 

 

158,650

 

 

 

149,905

 

 

CRE Nonowner Occupied

 

 

987,306

 

 

 

951,263

 

 

 

971,532

 

 

 

962,671

 

 

 

947,008

 

 

Total Real Estate Mortgage Loans

 

 

2,954,026

 

 

 

2,894,133

 

 

 

2,845,852

 

 

 

2,821,612

 

 

 

2,759,125

 

 

Consumer and Other

 

 

8,304

 

 

 

9,003

 

 

 

9,581

 

 

 

9,518

 

 

 

8,132

 

 

Total Loans, Gross

 

 

3,724,282

 

 

 

3,722,271

 

 

 

3,736,211

 

 

 

3,684,360

 

 

 

3,569,446

 

 

Allowance for Credit Losses on Loans

 

 

(50,494

)

 

 

(50,585

)

 

 

(50,701

)

 

 

(50,148

)

 

 

(47,996

)

 

Net Deferred Loan Fees

 

 

(6,573

)

 

 

(7,222

)

 

 

(7,718

)

 

 

(8,735

)

 

 

(9,293

)

 

Total Loans, Net

 

$

3,667,215

 

 

$

3,664,464

 

 

$

3,677,792

 

 

$

3,625,477

 

 

$

3,512,157

 

 

Total gross loans at December 31, 2023 were $3.72 billion, a slight increase of $2.0 million, or 0.2% annualized, over total gross loans of $3.72 billion at September 30, 2023, and an increase of $154.8 million, or 4.3%, over total gross loans of $3.57 billion at December 31, 2022.

  • The slower loan growth in the loan portfolio during the fourth quarter of 2023 was primarily due to moderating loan originations and decreased demand in the higher interest rate environment.

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

December 31,

2023

 

September 30,

2023

 

June 30,

2023

 

March 31,

2023

 

December 31,

2022

 

Noninterest Bearing Transaction Deposits

 

$

756,964

 

$

754,297

 

$

751,217

 

$

742,198

 

$

884,272

 

Interest Bearing Transaction Deposits

 

 

692,801

 

 

780,863

 

 

719,488

 

 

630,037

 

 

451,992

 

Savings and Money Market Deposits

 

 

935,091

 

 

872,534

 

 

860,613

 

 

913,013

 

 

1,031,873

 

Time Deposits

 

 

300,651

 

 

265,737

 

 

271,783

 

 

266,213

 

 

272,253

 

Brokered Deposits

 

 

1,024,441

 

 

1,002,078

 

 

974,831

 

 

859,662

 

 

776,153

 

Total Deposits

 

$

3,709,948

 

$

3,675,509

 

$

3,577,932

 

$

3,411,123

 

$

3,416,543

 

Total deposits at December 31, 2023 were $3.71 billion, an increase of $34.4 million, or 3.7% annualized, over total deposits of $3.68 billion at September 30, 2023, and an increase of $293.4 million, or 8.6%, over total deposits of $3.42 billion at December 31, 2022.

  • Core deposits, defined as total deposits excluding brokered deposits and time deposits greater than $250,000, remained stable year over year, despite industry and market turmoil.
  • Brokered deposits continue to be used as a supplemental funding source, as needed.
  • Uninsured deposits were 24% of total deposits as of December 31, 2023 and 22% of total deposits as of September 30, 2023.

Liquidity

Total on- and off-balance sheet liquidity was $2.23 billion as of December 31, 2023, compared to $2.18 billion at September 30, 2023 and $1.38 billion at December 31, 2022. The Company did not utilize the Bank Term Funding Program (BTFP) or Federal Reserve Discount Window during the fourth quarter of 2023.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary Liquidity—On-Balance Sheet

 

December 31,

2023

 

September 30,

2023

 

June 30,

2023

 

March 31,

2023

 

December 31,

2022

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents

 

$

96,594

 

 

$

77,617

 

 

$

138,618

 

 

$

177,116

 

 

$

48,090

 

Securities Available for Sale

 

 

604,104

 

 

 

553,076

 

 

 

538,220

 

 

 

559,430

 

 

 

548,613

 

Less: Pledged Securities

 

 

(170,727

)

 

 

(164,277

)

 

 

(236,206

)

 

 

(234,452

)

 

 

 

Total Primary Liquidity

 

$

529,971

 

 

$

466,416

 

 

$

440,632

 

 

$

502,094

 

 

$

596,703

 

Ratio of Primary Liquidity to Total Deposits

 

 

14.3

%

 

12.7

%

 

12.3

%

 

14.7

%

 

17.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secondary Liquidity—Off-Balance Sheet Borrowing Capacity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Secured Borrowing Capacity with the FHLB

 

$

498,736

 

 

$

516,501

 

 

$

400,792

 

 

$

246,795

 

 

$

390,898

 

Net Secured Borrowing Capacity with the Federal Reserve Bank

 

 

979,448

 

 

 

1,022,128

 

 

 

986,644

 

 

 

990,685

 

 

 

157,827

 

Unsecured Borrowing Capacity with Correspondent Lenders

 

 

200,000

 

 

 

150,000

 

 

 

108,000

 

 

 

158,000

 

 

 

208,000

 

Secured Borrowing Capacity with Correspondent Lender

 

 

26,250

 

 

 

26,250

 

 

 

26,250

 

 

 

26,250

 

 

 

26,250

 

Total Secondary Liquidity

 

$

1,704,434

 

 

$

1,714,879

 

 

$

1,521,686

 

 

$

1,421,730

 

 

$

782,975

 

Total Primary and Secondary Liquidity

 

$

2,234,405

 

 

$

2,181,295

 

 

$

1,962,318

 

 

$

1,923,824

 

 

$

1,379,678

 

Ratio of Primary and Secondary Liquidity to Total Deposits

 

 

60.2

%

 

59.3

%

 

54.8

%

 

56.4

%

 

40.4

%

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 0.01% for both the fourth quarter of 2023 and the third quarter of 2023, and 0.00% for the fourth quarter of 2022.
  • At December 31, 2023, the Company’s nonperforming assets, which include nonaccrual loans, loans past due 90 days and still accruing, and foreclosed assets, were $919,000, or 0.02% of total assets, as compared to $749,000, or 0.02%, of total assets at September 30, 2023, and $639,000, or 0.01% of total assets at December 31, 2022.
  • Loans with potential weaknesses that warrant a watchlist risk rating at December 31, 2023 totaled $26.5 million, compared to $26.9 million at September 30, 2023, and $32.3 million at December 31, 2022.
  • Loans that warranted a substandard risk rating at December 31, 2023 totaled $35.9 million, compared to $35.6 million at September 30, 2023, and $28.0 million at December 31, 2022.
  • Loans past due 30-89 days increased quarter over quarter due to the timing of closing on one matured loan. The closing occurred subsequent to year-end and the loan continues to perform as a pass-rated credit.

Capital

Total shareholders’ equity at December 31, 2023 was $425.5 million, an increase of $9.6 million, or 2.3%, compared to total shareholders’ equity of $416.0 million at September 30, 2023, and an increase of $31.5 million, or 8.0%, over total shareholders’ equity of $394.1 million at December 31, 2022.

  • The linked-quarter 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 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, the adoption of the Current Expected Credit Losses (CECL) accounting methodology, preferred stock dividends, and stock repurchases.
  • The Common Equity Tier 1 Risk-Based Capital Ratio was 9.16% at December 31, 2023, compared to 9.07% at September 30, 2023 and 8.40% at December 31, 2022.
  • Tangible common equity as a percentage of tangible assets, a non-GAAP financial measure, was 7.73% at December 31, 2023, compared to 7.61% at September 30, 2023, and 7.48% at December 31, 2022.

Tangible book value per share, a non-GAAP financial measure, was $12.84 as of December 31, 2023, an increase of 3.7% from $12.37 as of September 30, 2023, and an increase of 9.8% from $11.69 as of December 31, 2022.

  • The Company has increased tangible book value per share each of the past 28 quarters.

During the fourth quarter of 2023, the company repurchased 423,749 shares of its common stock. Shares were repurchased at a weighted average price of $10.72 per share for a total of $4.5 million.

  • The Company has $20.5 million remaining under its current share repurchase authorization.

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

Conference Call and Webcast

The Company will host a conference call to discuss its fourth quarter 2023 financial results on Thursday, January 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 4855149. The replay will be available through February 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 business services solutions with a responsive service model, Bridgewater has seen continuous growth and profitability. With total assets of $4.6 billion and seven branches as of December 31, 2023, 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 recent and potential additional rate increases by the Federal Reserve; 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 rising 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 at Silicon Valley Bank, Signature Bank and First Republic Bank that resulted in the failure of those institutions; 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 failures of Silicon Valley Bank, Signature Bank and First Republic Bank in 2023; 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 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, including the new 1% excise tax on stock buybacks by publicly traded companies; 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

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

(dollars in thousands)

 

2023

 

2023

 

2023

 

2023

 

2022

 

Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

$

25,314

 

$

25,421

 

$

25,872

 

$

28,567

 

$

32,893

 

Provision for (Recovery of) Credit Losses

 

 

(250

)

 

(600

 

50

 

 

625

 

 

1,500

 

Noninterest Income

 

 

1,409

 

 

1,726

 

 

1,415

 

 

1,943

 

 

1,738

 

Noninterest Expense

 

 

15,740

 

 

15,237

 

 

14,274

 

 

14,069

 

 

15,203

 

Net Income

 

 

8,873

 

 

9,629

 

 

9,816

 

 

11,642

 

 

13,735

 

Net Income Available to Common Shareholders

 

 

7,859

 

 

8,616

 

 

8,802

 

 

10,629

 

 

12,721

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Common Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Share

 

$

0.28

 

$

0.31

 

$

0.32

 

$

0.38

 

$

0.46

 

Diluted Earnings Per Share

 

 

0.28

 

 

0.30

 

 

0.31

 

 

0.37

 

 

0.45

 

Book Value Per Share

 

 

12.94

 

 

12.47

 

 

12.25

 

 

12.05

 

 

11.80

 

Tangible Book Value Per Share (1)

 

 

12.84

 

 

12.37

 

 

12.15

 

 

11.95

 

 

11.69

 

Basic Weighted Average Shares Outstanding

 

 

27,870,430

 

 

27,943,409

 

 

27,886,425

 

 

27,726,894

 

 

27,558,983

 

Diluted Weighted Average Shares Outstanding

 

 

28,238,056

 

 

28,311,778

 

 

28,198,739

 

 

28,490,046

 

 

28,527,306

 

Shares Outstanding at Period End

 

 

27,748,965

 

 

28,015,505

 

 

27,973,995

 

 

27,845,244

 

 

27,751,950

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Assets (2)

 

 

0.77

%

 

0.85

%

 

0.88

%

 

1.07

%

 

1.28

%

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

 

 

0.96

 

 

1.01

 

 

1.16

 

 

1.49

 

 

1.82

 

Return on Average Shareholders' Equity (2)

 

 

8.43

 

 

9.23

 

 

9.69

 

 

11.70

 

 

14.06

 

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

 

 

8.95

 

 

9.92

 

 

10.48

 

 

12.90

 

 

15.86

 

Net Interest Margin (3)

 

 

2.27

 

 

2.32

 

 

2.40

 

 

2.72

 

 

3.16

 

Core Net Interest Margin (1)(3)

 

 

2.21

 

 

2.24

 

 

2.31

 

 

2.62

 

 

3.05

 

Cost of Total Deposits

 

 

3.19

 

 

2.99

 

 

2.66

 

 

2.01

 

 

1.31

 

Cost of Funds

 

 

3.23

 

 

3.10

 

 

2.91

 

 

2.41

 

 

1.67

 

Efficiency Ratio (1)

 

 

58.8

 

 

56.1

 

 

52.3

 

 

45.9

 

 

43.8

 

Noninterest Expense to Average Assets (2)

 

 

1.37

 

 

1.34

 

 

1.28

 

 

1.30

 

 

1.42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

4,611,990

 

$

4,557,070

 

$

4,603,185

 

$

4,602,899

 

$

4,345,662

 

Total Loans, Gross

 

 

3,724,282

 

 

3,722,271

 

 

3,736,211

 

 

3,684,360

 

 

3,569,446

 

Deposits

 

 

3,709,948

 

 

3,675,509

 

 

3,577,932

 

 

3,411,123

 

 

3,416,543

 

Total Shareholders' Equity

 

 

425,515

 

 

415,960

 

 

409,126

 

 

402,006

 

 

394,064

 

Loan to Deposit Ratio

 

 

100.4

%

 

101.3

%

 

104.4

%

 

108.0

%

 

104.5

%

Core Deposits to Total Deposits (4)

 

 

68.7

 

 

70.3

 

 

70.3

 

 

72.4

 

 

74.6

 

Uninsured Deposits to Total Deposits

 

 

24.3

 

 

22.2

 

 

22.1

 

 

24.0

 

 

38.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loan Charge-Offs to Average Loans (2)

 

 

0.01

%

 

0.01

%

 

0.00

%

 

0.00

%

 

0.00

%

Nonperforming Assets to Total Assets (5)

 

 

0.02

 

 

0.02

 

 

0.02

 

 

0.02

 

 

0.01

 

Allowance for Credit Losses to Total Loans

 

 

1.36

 

 

1.36

 

 

1.36

 

 

1.36

 

 

1.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios (Consolidated) (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Leverage Ratio

 

 

9.57

%

 

9.62

%

 

9.47

%

 

9.41

%

 

9.55

%

Common Equity Tier 1 Risk-based Capital Ratio

 

 

9.16

 

 

9.07

 

 

8.72

 

 

8.48

 

 

8.40

 

Tier 1 Risk-based Capital Ratio

 

 

10.79

 

 

10.69

 

 

10.33

 

 

10.08

 

 

10.03

 

Total Risk-based Capital Ratio

 

 

13.97

 

 

13.88

 

 

13.50

 

 

13.25

 

 

13.15

 

Tangible Common Equity to Tangible Assets (1)

 

 

7.73

 

 

7.61

 

 

7.39

 

 

7.23

 

 

7.48

 

__________________________

(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,

 

 

2023

 

2023

 

2023

 

2023

 

2022

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents

 

$

128,562

 

 

$

124,358

 

 

$

177,101

 

 

$

209,192

 

 

$

87,043

 

Bank-Owned Certificates of Deposit

 

 

 

 

 

1,225

 

 

 

1,225

 

 

 

1,225

 

 

 

1,181

 

Securities Available for Sale, at Fair Value

 

 

604,104

 

 

 

553,076

 

 

 

538,220

 

 

 

559,430

 

 

 

548,613

 

Loans, Net of Allowance for Credit Losses

 

 

3,667,215

 

 

 

3,664,464

 

 

 

3,677,792

 

 

 

3,625,477

 

 

 

3,512,157

 

Federal Home Loan Bank (FHLB) Stock, at Cost

 

 

17,097

 

 

 

17,056

 

 

 

21,557

 

 

 

28,632

 

 

 

19,606

 

Premises and Equipment, Net

 

 

48,886

 

 

 

49,331

 

 

 

49,710

 

 

 

47,801

 

 

 

48,445

 

Foreclosed Assets

 

 

 

 

 

 

 

 

116

 

 

 

116

 

 

 

 

Accrued Interest

 

 

16,697

 

 

 

15,182

 

 

 

13,822

 

 

 

13,377

 

 

 

13,479

 

Goodwill

 

 

2,626

 

 

 

2,626

 

 

 

2,626

 

 

 

2,626

 

 

 

2,626

 

Other Intangible Assets, Net

 

 

188

 

 

 

197

 

 

 

206

 

 

 

240

 

 

 

288

 

Bank-Owned Life Insurance

 

 

34,477

 

 

 

34,209

 

 

 

33,958

 

 

 

33,719

 

 

 

33,485

 

Other Assets

 

 

92,138

 

 

 

95,346

 

 

 

86,852

 

 

 

81,064

 

 

 

78,739

 

Total Assets

 

$

4,611,990

 

 

$

4,557,070

 

 

$

4,603,185

 

 

$

4,602,899

 

 

$

4,345,662

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Bearing

 

$

756,964

 

 

$

754,297

 

 

$

751,217

 

 

$

742,198

 

 

$

884,272

 

Interest Bearing

 

 

2,952,984

 

 

 

2,921,212

 

 

 

2,826,715

 

 

 

2,668,925

 

 

 

2,532,271

 

Total Deposits

 

 

3,709,948

 

 

 

3,675,509

 

 

 

3,577,932

 

 

 

3,411,123

 

 

 

3,416,543

 

Federal Funds Purchased

 

 

 

 

 

 

 

 

195,000

 

 

 

437,000

 

 

 

287,000

 

Notes Payable

 

 

13,750

 

 

 

13,750

 

 

 

13,750

 

 

 

13,750

 

 

 

13,750

 

FHLB Advances

 

 

319,500

 

 

 

294,500

 

 

 

262,000

 

 

 

197,000

 

 

 

97,000

 

Subordinated Debentures, Net of Issuance Costs

 

 

79,288

 

 

 

79,192

 

 

 

79,096

 

 

 

79,001

 

 

 

78,905

 

Accrued Interest Payable

 

 

5,282

 

 

 

3,816

 

 

 

2,974

 

 

 

3,257

 

 

 

2,831

 

Other Liabilities

 

 

58,707

 

 

 

74,343

 

 

 

63,307

 

 

 

59,762

 

 

 

55,569

 

Total Liabilities

 

 

4,186,475

 

 

 

4,141,110

 

 

 

4,194,059

 

 

 

4,200,893

 

 

 

3,951,598

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, 2023 (unaudited), September 30, 2023 (unaudited), June 30, 2023 (unaudited), March 31, 2023 (unaudited), and December 31, 2022

 

 

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 27,748,965 at December 31, 2023 (unaudited), 28,015,505 at September 30, 2023 (unaudited), 27,973,995 at June 30, 2023 (unaudited), 27,845,244 at March 31, 2023 (unaudited), and 27,751,950 at December 31, 2022

 

 

277

 

 

 

280

 

 

 

280

 

 

 

278

 

 

 

278

 

Additional Paid-In Capital

 

 

96,320

 

 

 

100,120

 

 

 

99,044

 

 

 

97,716

 

 

 

96,529

 

Retained Earnings

 

 

280,650

 

 

 

272,812

 

 

 

264,196

 

 

 

255,394

 

 

 

248,685

 

Accumulated Other Comprehensive Loss

 

 

(18,246

)

 

 

(23,766

)

 

 

(20,908

)

 

 

(17,896

)

 

 

(17,942

)

Total Shareholders' Equity

 

 

425,515

 

 

 

415,960

 

 

 

409,126

 

 

 

402,006

 

 

 

394,064

 

Total Liabilities and Equity

 

$

4,611,990

 

 

$

4,557,070

 

 

$

4,603,185

 

 

$

4,602,899

 

 

$

4,345,662

Bridgewater Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income

(dollars in thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

December 31,

 

December 31,

(dollars in thousands)

 

2023

 

2023

 

2023

 

2023

 

2022

 

2023

 

2022

Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, Including Fees

 

$

49,727

 

 

$

48,999

 

 

$

47,721

 

 

$

44,955

 

 

$

42,488

 

 

$

191,402

 

 

$

146,256

 

Investment Securities

 

 

7,283

 

 

 

6,507

 

 

 

6,237

 

 

 

6,218

 

 

 

5,843

 

 

 

26,245

 

 

 

16,410

 

Other

 

 

1,543

 

 

 

1,303

 

 

 

1,043

 

 

 

819

 

 

 

529

 

 

 

4,708

 

 

 

1,029

 

Total Interest Income

 

 

58,553

 

 

 

56,809

 

 

 

55,001

 

 

 

51,992

 

 

 

48,860

 

 

 

222,355

 

 

 

163,695

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

29,448

 

 

 

27,225

 

 

 

22,998

 

 

 

16,374

 

 

 

10,781

 

 

 

96,045

 

 

 

23,379

 

Federal Funds Purchased

 

 

268

 

 

 

548

 

 

 

2,761

 

 

 

4,944

 

 

 

3,379

 

 

 

8,521

 

 

 

4,507

 

Notes Payable

 

 

299

 

 

 

296

 

 

 

285

 

 

 

263

 

 

 

202

 

 

 

1,143

 

 

 

202

 

FHLB Advances

 

 

2,220

 

 

 

2,316

 

 

 

2,092

 

 

 

861

 

 

 

575

 

 

 

7,489

 

 

 

1,221

 

Subordinated Debentures

 

 

1,004

 

 

 

1,003

 

 

 

993

 

 

 

983

 

 

 

1,030

 

 

 

3,983

 

 

 

4,688

 

Total Interest Expense

 

 

33,239

 

 

 

31,388

 

 

 

29,129

 

 

 

23,425

 

 

 

15,967

 

 

 

117,181

 

 

 

33,997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

 

25,314

 

 

 

25,421

 

 

 

25,872

 

 

 

28,567

 

 

 

32,893

 

 

 

105,174

 

 

 

129,698

 

Provision for (Recovery of) Credit Losses

 

 

(250

)

 

 

(600

)

 

 

50

 

 

 

625

 

 

 

1,500

 

 

 

(175

)

 

 

7,700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income After Provision for Credit Losses

 

 

25,564

 

 

 

26,021

 

 

 

25,822

 

 

 

27,942

 

 

 

31,393

 

 

 

105,349

 

 

 

121,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer Service Fees

 

 

359

 

 

 

379

 

 

 

368

 

 

 

349

 

 

 

344

 

 

 

1,455

 

 

 

1,236

 

Net Gain (Loss) on Sales of Securities

 

 

(27

)

 

 

 

 

 

50

 

 

 

(56

)

 

 

30

 

 

 

(33

)

 

 

82

 

Letter of Credit Fees

 

 

418

 

 

 

315

 

 

 

379

 

 

 

634

 

 

 

358

 

 

 

1,746

 

 

 

1,592

 

Debit Card Interchange Fees

 

 

152

 

 

 

150

 

 

 

155

 

 

 

138

 

 

 

148

 

 

 

595

 

 

 

586

 

Swap Fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

557

 

Bank-Owned Life Insurance

 

 

268

 

 

 

252

 

 

 

238

 

 

 

234

 

 

 

238

 

 

 

992

 

 

 

762

 

FHLB Prepayment Income

 

 

 

 

 

493

 

 

 

 

 

 

299

 

 

 

 

 

 

792

 

 

 

 

Other Income

 

 

239

 

 

 

137

 

 

 

225

 

 

 

345

 

 

 

620

 

 

 

946

 

 

 

1,517

 

Total Noninterest Income

 

 

1,409

 

 

 

1,726

 

 

 

1,415

 

 

 

1,943

 

 

 

1,738

 

 

 

6,493

 

 

 

6,332

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and Employee Benefits

 

 

9,615

 

 

 

9,519

 

 

 

8,589

 

 

 

8,815

 

 

 

9,821

 

 

 

36,538

 

 

 

36,941

 

Occupancy and Equipment

 

 

1,062

 

 

 

1,101

 

 

 

1,075

 

 

 

1,209

 

 

 

1,177

 

 

 

4,447

 

 

 

4,390

 

FDIC Insurance Assessment

 

 

1,050

 

 

 

1,075

 

 

 

900

 

 

 

665

 

 

 

360

 

 

 

3,690

 

 

 

1,365

 

Data Processing

 

 

424

 

 

 

392

 

 

 

401

 

 

 

357

 

 

 

371

 

 

 

1,574

 

 

 

1,396

 

Professional and Consulting Fees

 

 

782

 

 

 

715

 

 

 

829

 

 

 

755

 

 

 

635

 

 

 

3,081

 

 

 

2,664

 

Derivative Collateral Fees

 

 

573

 

 

 

543

 

 

 

404

 

 

 

380

 

 

 

535

 

 

 

1,900

 

 

 

687

 

Information Technology and Telecommunications

 

 

812

 

 

 

683

 

 

 

711

 

 

 

683

 

 

 

673

 

 

 

2,889

 

 

 

2,495

 

Marketing and Advertising

 

 

324

 

 

 

222

 

 

 

321

 

 

 

262

 

 

 

403

 

 

 

1,129

 

 

 

2,032

 

Intangible Asset Amortization

 

 

9

 

 

 

9

 

 

 

34

 

 

 

48

 

 

 

48

 

 

 

100

 

 

 

191

 

Amortization of Tax Credit Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

114

 

 

 

 

 

 

408

 

Other Expense

 

 

1,089

 

 

 

978

 

 

 

1,010

 

 

 

895

 

 

 

1,066

 

 

 

3,972

 

 

 

4,051

 

Total Noninterest Expense

 

 

15,740

 

 

 

15,237

 

 

 

14,274

 

 

 

14,069

 

 

 

15,203

 

 

 

59,320

 

 

 

56,620

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes

 

 

11,233

 

 

 

12,510

 

 

 

12,963

 

 

 

15,816

 

 

 

17,928

 

 

 

52,522

 

 

 

71,710

 

Provision for Income Taxes

 

 

2,360

 

 

 

2,881

 

 

 

3,147

 

 

 

4,174

 

 

 

4,193

 

 

 

12,562

 

 

 

18,318

 

Net Income

 

 

8,873

 

 

 

9,629

 

 

 

9,816

 

 

 

11,642

 

 

 

13,735

 

 

 

39,960

 

 

 

53,392

 

Preferred Stock Dividends

 

 

(1,014

)

 

 

(1,013

)

 

 

(1,014

)

 

 

(1,013

)

 

 

(1,014

)

 

 

(4,054

)

 

 

(4,054

)

Net Income Available to Common Shareholders

 

$

7,859

 

 

$

8,616

 

 

$

8,802

 

 

$

10,629

 

 

$

12,721

 

 

$

35,906

 

 

$

49,338

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.28

 

 

$

0.31

 

 

$

0.32

 

 

$

0.38

 

 

$

0.46

 

 

$

1.29

 

 

$

1.78

 

Diluted

 

 

0.28

 

 

 

0.30

 

 

 

0.31

 

 

 

0.37

 

 

 

0.45

 

 

 

1.27

 

 

 

1.72

 

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, 2023

 

September 30, 2023

 

December 31, 2022

 

 

 

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

 

$

106,275

 

$

1,233

 

4.60

%

$

81,038

 

$

903

 

4.42

%

$

65,393

 

$

366

 

2.22

%

Investment Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable Investment Securities

 

 

600,856

 

 

7,007

 

4.63

 

 

565,008

 

 

6,234

 

4.38

 

 

540,601

 

 

5,268

 

3.87

 

Tax-Exempt Investment Securities (1)

 

 

29,172

 

 

350

 

4.75

 

 

29,955

 

 

346

 

4.58

 

 

67,867

 

 

728

 

4.26

 

Total Investment Securities

 

 

630,028

 

 

7,357

 

4.63

 

 

594,963

 

 

6,580

 

4.39

 

 

608,468

 

 

5,996

 

3.91

 

Loans (1)(2)

 

 

3,726,126

 

 

50,022

 

5.33

 

 

3,722,594

 

 

49,326

 

5.26

 

 

3,482,150

 

 

42,702

 

4.87

 

Federal Home Loan Bank Stock

 

 

17,999

 

 

310

 

6.85

 

 

17,829

 

 

400

 

8.89

 

 

21,633

 

 

163

 

2.99

 

Total Interest Earning Assets

 

 

4,480,428

 

 

58,922

 

5.22

%

 

4,416,424

 

 

57,209

 

5.14

%

 

4,177,644

 

 

49,227

 

4.67

%

Noninterest Earning Assets

 

 

87,018

 

 

 

 

 

 

 

88,513

 

 

 

 

 

 

 

73,701

 

 

 

 

 

 

Total Assets

 

$

4,567,446

 

 

 

 

 

 

$

4,504,937

 

 

 

 

 

 

$

4,251,345

 

 

 

 

 

 

Interest Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Bearing Transaction Deposits

 

$

719,630

 

$

7,546

 

4.16

%

$

730,244

 

$

7,136

 

3.88

%

$

464,631

 

$

2,013

 

1.72

%

Savings and Money Market Deposits

 

 

911,835

 

 

9,003

 

3.92

 

 

874,612

 

 

8,089

 

3.67

 

 

1,048,227

 

 

4,533

 

1.72

 

Time Deposits

 

 

268,140

 

 

2,330

 

3.45

 

 

266,635

 

 

1,962

 

2.92

 

 

281,334

 

 

1,007

 

1.42

 

Brokered Deposits

 

 

1,009,166

 

 

10,569

 

4.16

 

 

985,276

 

 

10,038

 

4.04

 

 

537,351

 

 

3,228

 

2.38

 

Total Interest Bearing Deposits

 

 

2,908,771

 

 

29,448

 

4.02

 

 

2,856,767

 

 

27,225

 

3.78

 

 

2,331,543

 

 

10,781

 

1.83

 

Federal Funds Purchased

 

 

18,932

 

 

268

 

5.62

 

 

39,641

 

 

548

 

5.48

 

 

340,471

 

 

3,379

 

3.94

 

Notes Payable

 

 

13,750

 

 

299

 

8.62

 

 

13,750

 

 

296

 

8.58

 

 

11,359

 

 

202

 

7.04

 

FHLB Advances

 

 

303,467

 

 

2,220

 

2.90

 

 

275,261

 

 

2,316

 

3.34

 

 

94,103

 

 

575

 

2.42

 

Subordinated Debentures

 

 

79,233

 

 

1,004

 

5.02

 

 

79,137

 

 

1,003

 

5.03

 

 

81,242

 

 

1,030

 

5.03

 

Total Interest Bearing Liabilities

 

 

3,324,153

 

 

33,239

 

3.97

%

 

3,264,556

 

 

31,388

 

3.81

%

 

2,858,718

 

 

15,967

 

2.22

%

Noninterest Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Bearing Transaction Deposits

 

 

753,430

 

 

 

 

 

 

 

754,567

 

 

 

 

 

 

 

943,232

 

 

 

 

 

 

Other Noninterest Bearing Liabilities

 

 

72,074

 

 

 

 

 

 

 

71,767

 

 

 

 

 

 

 

61,806

 

 

 

 

 

 

Total Noninterest Bearing Liabilities

 

 

825,504

 

 

 

 

 

 

 

826,334

 

 

 

 

 

 

 

1,005,038

 

 

 

 

 

 

Shareholders' Equity

 

 

417,789

 

 

 

 

 

 

 

414,047

 

 

 

 

 

 

 

387,589

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

 

$

4,567,446

 

 

 

 

 

 

$

4,504,937

 

 

 

 

 

 

$

4,251,345

 

 

 

 

 

 

Net Interest Income / Interest Rate Spread

 

 

 

 

 

25,683

 

1.25

%

 

 

 

 

25,821

 

1.33

%

 

 

 

 

33,260

 

2.45

%

Net Interest Margin (3)

 

 

 

 

 

 

 

2.27

%

 

 

 

 

 

 

2.32

%

 

 

 

 

 

 

3.16

%

Taxable Equivalent Adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax-Exempt Investment Securities and Loans

 

 

 

 

 

(369)

 

 

 

 

 

 

(400)

 

 

 

 

 

 

(367)

 

 

Net Interest Income

 

 

 

 

$

25,314

 

 

 

 

 

 

$

25,421

 

 

 

 

 

 

$

32,893

 

 

 

__________________________

(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, 2023

 

December 31, 2022

 

 

 

Average

 

Interest

 

Yield/

 

Average

 

Interest

 

Yield/

 

(dollars in thousands)

 

Balance

 

& Fees

 

Rate

 

Balance

 

& Fees

 

Rate

 

Interest Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Investments

 

$

77,759

 

$

3,170

 

4.08

%

$

66,072

 

$

597

 

0.90

%

Investment Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable Investment Securities

 

 

577,102

 

 

25,199

 

4.37

 

 

448,500

 

 

13,960

 

3.11

 

Tax-Exempt Investment Securities (1)

 

 

29,004

 

 

1,325

 

4.57

 

 

72,379

 

 

3,101

 

4.29

 

Total Investment Securities

 

 

606,106

 

 

26,524

 

4.38

 

 

520,879

 

 

17,061

 

3.28

 

Loans (1)(2)

 

 

3,699,252

 

 

192,679

 

5.21

 

 

3,190,712

 

 

146,827

 

4.60

 

Federal Home Loan Bank Stock

 

 

21,249

 

 

1,538

 

7.24

 

 

12,628

 

 

432

 

3.42

 

Total Interest Earning Assets

 

 

4,404,366

 

 

223,911

 

5.08

%

 

3,790,291

 

 

164,917

 

4.35

%

Noninterest Earning Assets

 

 

86,438

 

 

 

 

 

 

 

76,189

 

 

 

 

 

 

Total Assets

 

$

4,490,804

 

 

 

 

 

 

$

3,866,480

 

 

 

 

 

 

Interest Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Bearing Transaction Deposits

 

$

650,028

 

$

23,379

 

3.60

%

$

524,968

 

$

4,336

 

0.83

%

Savings and Money Market Deposits

 

 

922,799

 

 

30,639

 

3.32

 

 

963,096

 

 

9,129

 

0.95

 

Time Deposits

 

 

263,161

 

 

7,064

 

2.68

 

 

284,868

 

 

3,264

 

1.15

 

Brokered Deposits

 

 

909,662

 

 

34,963

 

3.84

 

 

449,095

 

 

6,650

 

1.48

 

Total Interest Bearing Deposits

 

 

2,745,650

 

 

96,045

 

3.50

 

 

2,222,027

 

 

23,379

 

1.05

 

Federal Funds Purchased

 

 

169,645

 

 

8,521

 

5.02

 

 

149,608

 

 

4,507

 

3.01

 

Notes Payable

 

 

13,750

 

 

1,143

 

8.31

 

 

2,863

 

 

202

 

7.04

 

FHLB Advances

 

 

238,000

 

 

7,489

 

3.15

 

 

64,278

 

 

1,221

 

1.90

 

Subordinated Debentures

 

 

79,090

 

 

3,983

 

5.04

 

 

89,584

 

 

4,688

 

5.23

 

Total Interest Bearing Liabilities

 

 

3,246,135

 

 

117,181

 

3.61

%

 

2,528,360

 

 

33,997

 

1.34

%

Noninterest Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Bearing Transaction Deposits

 

 

768,428

 

 

 

 

 

 

 

910,490

 

 

 

 

 

 

Other Noninterest Bearing Liabilities

 

 

65,763

 

 

 

 

 

 

 

43,597

 

 

 

 

 

 

Total Noninterest Bearing Liabilities

 

 

834,191

 

 

 

 

 

 

 

954,087

 

 

 

 

 

 

Shareholders' Equity

 

 

410,478

 

 

 

 

 

 

 

384,033

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

 

$

4,490,804

 

 

 

 

 

 

$

3,866,480

 

 

 

 

 

 

Net Interest Income / Interest Rate Spread

 

 

 

 

 

106,730

 

1.47

%

 

 

 

 

130,920

 

3.01

%

Net Interest Margin (3)

 

 

 

 

 

 

 

2.42

%

 

 

 

 

 

 

3.45

%

Taxable Equivalent Adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax-Exempt Investment Securities and Loans

 

 

 

 

 

(1,556)

 

 

 

 

 

 

 

(1,222)

 

 

 

Net Interest Income

 

 

 

 

$

105,174

 

 

 

 

 

 

$

129,698

 

 

 

__________________________

(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

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)

 

2023

 

2023

 

2023

 

2023

 

2022

 

2023

 

2022

 

Allowance for Credit Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at Beginning of Period

 

$

50,585

 

 

$

50,701

 

 

$

50,148

 

 

$

47,996

 

 

$

46,491

 

 

$

47,996

 

 

$

40,020

 

 

Impact of Adopting CECL

 

 

 

 

 

 

 

 

 

 

 

650

 

 

 

 

 

 

650

 

 

 

 

 

Provision for Credit Losses

 

 

 

 

 

 

 

 

550

 

 

 

1,500

 

 

 

1,500

 

 

 

2,050

 

 

 

7,700

 

 

Charge-offs

 

 

(95

)

 

 

(122

)

 

 

(3

)

 

 

(4

)

 

 

(3

)

 

 

(224

)

 

 

(37

)

 

Recoveries

 

 

4

 

 

 

6

 

 

 

6

 

 

 

6

 

 

 

8

 

 

 

22

 

 

 

313

 

 

Net Charge-offs

 

$

(91

)

 

$

(116

)

 

$

3

 

 

$

2

 

 

$

5

 

 

$

(202

)

 

$

276

 

 

Balance at End of Period

 

 

50,494

 

 

 

50,585

 

 

 

50,701

 

 

 

50,148

 

 

 

47,996

 

 

 

50,494

 

 

 

47,996

 

 

Allowance for Credit Losses to Total Loans

 

 

1.36

 

%

 

1.36

 

%

 

1.36

 

%

 

1.36

 

%

 

1.34

 

%

 

1.36

 

%

 

1.34

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

2023

 

2023

 

2023

 

2023

 

2022

 

2023

 

2022

 

Provision for Credit Losses on Loans

 

$

 

 

$

 

 

$

550

 

 

$

1,500

 

 

$

1,500

 

 

$

2,050

 

 

$

7,700

 

 

Recovery of Credit Losses for Off-Balance Sheet Credit Exposures

 

 

(250

)

 

 

(600

)

 

 

(500

)

 

 

(875

)

 

 

 

 

 

(2,225

)

 

 

 

 

Provision for (Recovery of) Credit Losses

 

$

(250

)

 

$

(600

)

 

$

50

 

 

$

625

 

 

$

1,500

 

 

$

(175

)

 

$

7,700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Three Months Ended

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

(dollars in thousands)

 

2023

 

2023

 

2023

 

2023

 

2022

 

Selected Asset Quality Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans 30-89 Days Past Due

 

$

15,110

 

$

11

 

$

 

$

21

 

$

186

 

Loans 30-89 Days Past Due to Total Loans

 

 

0.41

%

 

0.00

%

 

0.00

%

 

0.00

%

 

0.01

%

Nonperforming Loans

 

$

919

 

$

749

 

$

662

 

$

693

 

$

639

 

Nonperforming Loans to Total Loans

 

 

0.02

%

 

0.02

%

 

0.02

%

 

0.02

%

 

0.02

%

Foreclosed Assets

 

$

 

$

 

$

116

 

$

116

 

$

 

Nonaccrual Loans to Total Loans

 

 

0.02

%

 

0.02

%

 

0.02

%

 

0.02

%

 

0.02

%

Nonaccrual Loans and Loans Past Due 90 Days and Still Accruing to Total Loans

 

 

0.02

 

 

0.02

 

 

0.02

 

 

0.02

 

 

0.02

 

Nonperforming Assets (1)

 

$

919

 

$

749

 

$

778

 

$

809

 

$

639

 

Nonperforming Assets to Total Assets (1)

 

 

0.02

%

 

0.02

%

 

0.02

%

 

0.02

%

 

0.01

%

Net Loan Charge-Offs (Annualized) to Average Loans

 

 

0.01

 

 

0.01

 

 

0.00

 

 

0.00

 

 

0.00

 

Watchlist Risk Rating Loans

 

$

26,485

 

$

26,877

 

$

27,215

 

$

27,574

 

$

32,252

 

Substandard Risk Rating Loans

 

 

35,858

 

 

35,621

 

 

33,821

 

 

36,258

 

 

28,049

 

__________________________

(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)

 

2023

 

2023

 

2023

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-Provision Net Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Income

 

$

1,409

 

 

$

1,726

 

 

$

1,415

 

 

$

1,943

 

 

$

1,738

 

 

$

6,493

 

 

$

6,332

 

 

Less: (Gain) Loss on Sales of Securities

 

 

27

 

 

 

 

 

 

(50

)

 

 

56

 

 

 

(30

)

 

 

33

 

 

 

(82

)

 

Less: FHLB Advance Prepayment Income

 

 

 

 

 

(493

)

 

 

 

 

 

(299

)

 

 

 

 

 

(792

)

 

 

 

 

Total Operating Noninterest Income

 

 

1,436

 

 

 

1,233

 

 

 

1,365

 

 

 

1,700

 

 

 

1,708

 

 

 

5,734

 

 

 

6,250

 

 

Plus: Net Interest Income

 

 

25,314

 

 

 

25,421

 

 

 

25,872

 

 

 

28,567

 

 

 

32,893

 

 

 

105,174

 

 

 

129,698

 

 

Net Operating Revenue

 

$

26,750

 

 

$

26,654

 

 

$

27,237

 

 

$

30,267

 

 

$

34,601

 

 

$

110,908

 

 

$

135,948

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expense

 

$

15,740

 

 

$

15,237

 

 

$

14,274

 

 

$

14,069

 

 

$

15,203

 

 

$

59,320

 

 

$

56,620

 

 

Less: Amortization of Tax Credit Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(114

)

 

 

 

 

 

(408

)