Bridgewater Bancshares, Inc. Announces Third Quarter 2023 Net Income of $9.6 Million, $0.30 Diluted Earnings Per Common Share

Third Quarter 2023 Highlights

  • Annualized return on average assets (ROA) of 0.85%, compared to 0.88% for the second quarter of 2023.
  • Annualized return on average shareholders’ equity (ROE) of 9.23%, compared to 9.69% for the second quarter of 2023, and annualized return on average tangible common equity (ROATCE)(1) of 9.92%, compared to 10.48% for the second quarter of 2023.
  • Deposits increased by $97.6 million, or 10.8% annualized, from the second quarter of 2023, including an increase of core deposits(2) of $69.9 million, or 11.0% annualized.
  • Core deposit growth exceeded loan growth for the second consecutive quarter as gross loans declined slightly by $13.9 million from the second quarter of 2023, lowering the loan-to-deposit ratio to 101.3%.
  • Net interest margin (on a fully tax-equivalent basis) of 2.32%, compared to 2.40% in the second quarter of 2023.
  • Efficiency ratio(1) of 56.5%, compared to 52.7% for the second quarter of 2023.
  • No provision for credit losses on loans was recorded in the third quarter of 2023. The allowance for credit losses on loans to total loans was 1.36% at both September 30, 2023 and June 30, 2023.
  • Annualized net loan charge-offs as a percentage of average loans of 0.01% for the third quarter of 2023, compared to 0.00% for the second quarter of 2023.
  • Nonperforming assets to total assets of 0.02% at September 30, 2023 and June 30, 2023.
  • Tangible book value per share(1) of $12.37 at September 30, 2023, an increase of $0.23, or 7.4% annualized, compared to $12.15 at June 30, 2023.

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

(2) Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000.

Bridgewater Bancshares, Inc. (Nasdaq: BWB) (the Company), the parent company of Bridgewater Bank (the Bank), today announced net income of $9.6 million for the third quarter of 2023, compared to $9.8 million for the second quarter of 2023, and $14.5 million for the third quarter of 2022. Earnings per diluted common share were $0.30 for the third quarter of 2023, compared to $0.31 for the second quarter of 2023, and $0.47 per diluted common share for the same period in 2022.

“Throughout the third quarter, Bridgewater saw the continuation of several encouraging trends, including signs of net interest margin stabilization, enhanced balance sheet composition, and superb asset quality,” said Chairman, Chief Executive Officer, and President, Jerry Baack. “A second consecutive quarter of strong core deposit growth and reduced borrowings aided our net interest margin. In addition, we are being very thoughtful in how we position the balance sheet for longer term success as this unique banking environment continues to evolve.

“The quality of our loan portfolio was evident again during the quarter due to our consistent underwriting standards, active credit oversight, and experienced lending and credit teams. We also remained focused on our ongoing client engagement efforts, investments in our people, and creating efficiencies across the organization, all with an eye toward continuing our track record of consistent tangible book value growth, which has increased each of the past 27 quarters.”

Key Financial Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Three Months Ended

 

 

As of and for the Nine Months Ended

 

 

 

September 30,

 

June 30,

 

September 30,

 

 

September 30,

 

September 30,

 

 

 

2023

 

2023

 

2022

 

 

 

2023

 

2022

 

 

Per Common Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Share

 

$

0.31

 

$

0.32

 

$

0.49

 

 

 

$

1.01

 

$

1.32

 

 

Diluted Earnings Per Share

 

 

0.30

 

 

0.31

 

 

0.47

 

 

 

 

0.99

 

 

1.27

 

 

Book Value Per Share

 

 

12.47

 

 

12.25

 

 

11.44

 

 

 

 

12.47

 

 

11.44

 

 

Tangible Book Value Per Share (1)

 

 

12.37

 

 

12.15

 

 

11.33

 

 

 

 

12.37

 

 

11.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Assets (2)

 

 

0.85

%

 

0.88

%

 

1.46

%

 

 

0.93

%

 

1.42

%

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

 

 

1.01

 

 

1.16

 

 

2.15

 

 

 

 

1.22

 

 

2.15

 

 

Return on Average Shareholders' Equity (2)

 

 

9.23

 

 

9.69

 

 

14.99

 

 

 

 

10.19

 

 

13.85

 

 

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

 

 

9.92

 

 

10.48

 

 

17.03

 

 

 

 

11.07

 

 

15.63

 

 

Net Interest Margin (3)

 

 

2.32

 

 

2.40

 

 

3.53

 

 

 

 

2.47

 

 

3.57

 

 

Core Net Interest Margin (1)(3)

 

 

2.24

 

 

2.31

 

 

3.38

 

 

 

 

2.39

 

 

3.35

 

 

Cost of Total Deposits

 

 

2.99

 

 

2.66

 

 

0.73

 

 

 

 

2.57

 

 

0.55

 

 

Cost of Funds

 

 

3.10

 

 

2.91

 

 

0.93

 

 

 

 

2.81

 

 

0.73

 

 

Efficiency Ratio (1)

 

 

56.5

 

 

52.7

 

 

39.8

 

 

 

 

51.6

 

 

40.7

 

 

Noninterest Expense to Average Assets (2)

 

 

1.35

 

 

1.29

 

 

1.42

 

 

 

 

1.32

 

 

1.48

 

 

Tangible Common Equity to Tangible Assets (1)

 

 

7.61

 

 

7.39

 

 

7.57

 

 

 

 

7.61

 

 

7.57

 

 

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

 

 

9.07

 

 

8.72

 

 

8.47

 

 

 

 

9.07

 

 

8.47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet and Asset Quality (dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

4,557,070

 

$

4,603,185

 

$

4,128,987

 

 

 

$

4,557,070

 

$

4,128,987

 

 

Total Loans, Gross

 

 

3,722,271

 

 

3,736,211

 

 

3,380,082

 

 

 

 

3,722,271

 

 

3,380,082

 

 

Deposits

 

 

3,675,509

 

 

3,577,932

 

 

3,305,074

 

 

 

 

3,675,509

 

 

3,305,074

 

 

Loan to Deposit Ratio

 

 

101.3

%

 

104.4

%

 

102.3

%

 

 

101.3

%

 

102.3

%

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

 

 

0.01

 

 

0.00

 

 

(0.03

)

 

 

 

0.00

 

 

(0.01

)

 

Nonperforming Assets to Total Assets (5)

 

 

0.02

 

 

0.02

 

 

0.02

 

 

 

 

0.02

 

 

0.02

 

 

Allowance for Credit Losses to Total Loans

 

 

1.36

 

 

1.36

 

 

1.38

 

 

 

 

1.36

 

 

1.38

 

 

(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 Income and Net Interest Margin

Net interest margin (on a fully tax-equivalent basis) for the third quarter of 2023 was 2.32%, an eight basis point decline from 2.40% in the second quarter of 2023 and a 121 basis point decline from 3.53% in the third 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 PPP balances, interest, and fees was 2.24% for the third quarter of 2023, a seven basis point decline from 2.31% in the second quarter of 2023, and a 114 basis point decline from 3.38% in the third quarter of 2022.

  • The linked-quarter decline in the margin was primarily due to higher funding costs, offset partially by higher earning asset yields.
  • The year-over-year decline in the margin was primarily due to higher funding costs and increased borrowings in the rising interest rate environment, offset partially by higher earning asset yields.

Net interest income was $25.4 million for the third quarter of 2023, a decrease of $451,000 from $25.9 million in the second quarter of 2023, and a decrease of $8.7 million from $34.1 million in the third quarter of 2022.

  • The linked-quarter decrease in net interest income was primarily due to higher rates paid on deposits in the rising interest rate environment.
  • The year-over-year decrease in net interest income was primarily due to higher rates paid on deposits and increased borrowings in the rising interest rate environment.
  • Average interest earning assets were $4.42 billion for the third quarter of 2023, an increase of $21.4 million, or 0.5%, from $4.40 billion for the second quarter of 2023, and an increase of $544.5 million, or 14.1%, from $3.87 billion for the third quarter of 2022. The linked-quarter increase in average interest earning assets was primarily due to an increase in cash. The year-over-year increase in average interest earning assets was primarily due to strong growth in the loan portfolio and purchases of investment securities.

Interest income was $56.8 million for the third quarter of 2023, an increase of $1.8 million from $55.0 million in the second quarter of 2023, and an increase of $14.5 million from $42.4 million in the third quarter of 2022.

  • The yield on interest earning assets (on a fully tax-equivalent basis) was 5.14% in the third quarter of 2023, compared to 5.06% in the second quarter of 2023 and 4.37% in the third quarter of 2022.
  • The linked-quarter increase in the yield on interest earning assets was primarily due to the increase in market interest rates resulting in new loan originations 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, excluding PPP loans, increased to 5.26% in the third quarter of 2023, which was seven basis points higher than 5.19% in the second quarter of 2023, and 67 basis points higher than 4.59% in the third 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, excluding PPP loans, for the periods indicated is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

September 30, 2023

 

 

June 30, 2023

 

 

March 31, 2023

 

 

December 31, 2022

 

 

September 30, 2022

 

 

Interest

 

5.16

%

 

5.09

%

 

4.95

%

 

4.74

%

 

4.42

%

 

Fees

 

0.10

 

 

0.10

 

 

0.11

 

 

0.12

 

 

0.17

 

 

Yield on Loans, Excluding PPP Loans

 

5.26

%

 

5.19

%

 

5.06

%

 

4.86

%

 

4.59

%

 

Interest expense was $31.4 million for the third quarter of 2023, an increase of $2.3 million from $29.1 million in the second quarter of 2023, and an increase of $23.1 million from $8.3 million in the third quarter of 2022.

  • The cost of interest bearing liabilities increased 22 basis points on a linked-quarter basis from 3.59% in the second quarter of 2023 to 3.81% in the third quarter of 2023, primarily due to higher rates paid on deposits in the rising interest rate environment.
  • On a year-over-year basis, the cost of interest bearing liabilities increased 251 basis points from 1.30% in the third quarter of 2022 to 3.81% in the third quarter of 2023, 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 $27.2 million for the third quarter of 2023, an increase of $4.2 million from $23.0 million in the second quarter of 2023, and an increase of $21.2 million from $6.0 million in the third quarter of 2022.

  • The cost of total deposits increased 33 basis points on a linked-quarter basis from 2.66% in the second quarter of 2023, to 2.99% in the third quarter of 2023, primarily due to the rising interest rate environment and increased competition from other market alternatives.
  • On a year-over-year basis, the cost of total deposits increased 226 basis points from 0.73% in the third quarter of 2022, to 2.99% in the third quarter of 2023, 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 zero for the third quarter of 2023, compared to $550,000 for the second quarter of 2023 and $1.5 million for the third quarter of 2022.

  • No provision for credit losses on loans was recorded in the third 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 September 30, 2023, compared to 1.36% at June 30, 2023, and 1.38% at September 30, 2022.

The provision for credit losses for off-balance sheet credit exposures was a negative provision of $600,000 for the third quarter of 2023, compared to a negative $500,000 for the second quarter of 2023 and zero for the third 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 $1.7 million for the third quarter of 2023, an increase of $311,000 from $1.4 million for the second quarter of 2023 and an increase of $339,000 from $1.4 million for the third quarter of 2022.

  • The linked-quarter increase was primarily due to $0.5 million of FHLB prepayment income, offset partially by lower other income.
  • The year-over-year increase was primarily due to $0.5 million of FHLB prepayment income, offset partially by decreased letter of credit fees and other income.

Noninterest Expense

Noninterest expense was $15.4 million for the third quarter of 2023, an increase of $962,000 from $14.4 million for the second quarter of 2023 and an increase of $1.2 million from $14.2 million for the third quarter of 2022. It is worth noting, on a year-to-date basis through the third quarter, noninterest expense increased $2.5 million, or 6.0%, compared to year-to-date in 2022.

  • The linked-quarter increase was primarily due to increases in salaries and employee benefits and industry-wide increases in the FDIC insurance assessment, offset partially by a decrease in professional and consulting fees.
  • The year-over-year increase was primarily attributable to increases in the FDIC insurance assessment and derivative collateral fees, offset partially by decreases in marketing and advertising.
  • The efficiency ratio, a non-GAAP financial measure, was 56.5% for the third quarter of 2023, compared to 52.7% for the second quarter of 2023, and 39.8% for the third quarter of 2022.
  • The Company had 255 full-time equivalent employees at September 30, 2023, compared to 253 employees at June 30, 2023, and 246 employees at September 30, 2022.

 

Income Taxes

The effective combined federal and state income tax rate for the third quarter of 2023 was 22.3%, a decrease from 23.6% for the second quarter of 2023 and 26.8% for the third quarter of 2022. The effective combined federal and state rate for the nine months ended September 30, 2023 and 2022 was 24.1% and 26.3%, respectively.

Balance Sheet

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

 

December 31, 2022

 

September 30, 2022

 

Commercial

 

$

459,063

 

 

$

459,184

 

 

$

454,193

 

 

$

435,344

 

 

$

412,448

 

 

Paycheck Protection Program

 

 

791

 

 

 

877

 

 

 

963

 

 

 

1,049

 

 

 

1,192

 

 

Construction and Land Development

 

 

294,818

 

 

 

351,069

 

 

 

312,277

 

 

 

295,554

 

 

 

280,380

 

 

1 - 4 Family Construction

 

 

64,463

 

 

 

69,648

 

 

 

85,797

 

 

 

70,242

 

 

 

55,177

 

 

Real Estate Mortgage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 - 4 Family Mortgage

 

 

404,716

 

 

 

400,708

 

 

 

380,210

 

 

 

355,474

 

 

 

341,102

 

 

Multifamily

 

 

1,378,669

 

 

 

1,314,524

 

 

 

1,320,081

 

 

 

1,306,738

 

 

 

1,230,509

 

 

CRE Owner Occupied

 

 

159,485

 

 

 

159,088

 

 

 

158,650

 

 

 

149,905

 

 

 

151,088

 

 

CRE Nonowner Occupied

 

 

951,263

 

 

 

971,532

 

 

 

962,671

 

 

 

947,008

 

 

 

900,691

 

 

Total Real Estate Mortgage Loans

 

 

2,894,133

 

 

 

2,845,852

 

 

 

2,821,612

 

 

 

2,759,125

 

 

 

2,623,390

 

 

Consumer and Other

 

 

9,003

 

 

 

9,581

 

 

 

9,518

 

 

 

8,132

 

 

 

7,495

 

 

Total Loans, Gross

 

 

3,722,271

 

 

 

3,736,211

 

 

 

3,684,360

 

 

 

3,569,446

 

 

 

3,380,082

 

 

Allowance for Loan Losses

 

 

(50,585

)

 

 

(50,701

)

 

 

(50,148

)

 

 

(47,996

)

 

 

(46,491

)

 

Net Deferred Loan Fees

 

 

(7,222

)

 

 

(7,718

)

 

 

(8,735

)

 

 

(9,293

)

 

 

(9,088

)

 

Total Loans, Net

 

$

3,664,464

 

 

$

3,677,792

 

 

$

3,625,477

 

 

$

3,512,157

 

 

$

3,324,503

 

 

Total gross loans at September 30, 2023 were $3.72 billion, a slight decrease of $13.9 million, or 1.5% annualized, over total gross loans of $3.74 billion at June 30, 2023, and an increase of $342.2 million, or 10.1%, over total gross loans of $3.38 billion at September 30, 2022.

  • The decrease in the loan portfolio during the third quarter of 2023 was primarily due to moderating loan originations and elevated payoffs and paydowns.

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

 

December 31, 2022

 

September 30, 2022

 

Noninterest Bearing Transaction Deposits

 

$

754,297

 

$

751,217

 

$

742,198

 

$

884,272

 

$

961,084

 

Interest Bearing Transaction Deposits

 

 

780,863

 

 

719,488

 

 

630,037

 

 

451,992

 

 

510,396

 

Savings and Money Market Deposits

 

 

872,534

 

 

860,613

 

 

913,013

 

 

1,031,873

 

 

1,077,333

 

Time Deposits

 

 

265,737

 

 

271,783

 

 

266,213

 

 

272,253

 

 

293,052

 

Brokered Deposits

 

 

1,002,078

 

 

974,831

 

 

859,662

 

 

776,153

 

 

463,209

 

Total Deposits

 

$

3,675,509

 

$

3,577,932

 

$

3,411,123

 

$

3,416,543

 

$

3,305,074

 

Total deposits at September 30, 2023 were $3.68 billion, an increase of $97.6 million, or 10.8% annualized, over total deposits of $3.58 billion at June 30, 2023, and an increase of $370.4 million, or 11.2%, over total deposits of $3.31 billion at September 30, 2022.

  • Core deposits, defined as total deposits excluding brokered deposits and time deposits greater than $250,000, increased $69.9 million, or 11.0% annualized, from the second quarter 2023.
  • Brokered deposits continue to be used as a supplemental funding source, as needed.
  • Uninsured deposits were 22% of total deposits as of September 30, 2023 and June 30, 2023.

Liquidity

Total on- and off-balance sheet liquidity was $2.18 billion as of September 30, 2023, compared to $1.96 billion at June 30, 2023 and $1.41 billion at September 30, 2022. The Company did not utilize the Bank Term Funding Program (BTFP) or Federal Reserve Discount Window during the third quarter of 2023.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary Liquidity—On-Balance Sheet

 

September 30, 2023

 

June 30. 2023

 

March 31, 2023

 

December 31, 2022

 

September 30, 2022

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents

 

$

77,617

 

$

138,618

 

$

177,116

 

$

48,090

 

$

36,332

 

Securities Available for Sale

 

 

553,076

 

 

538,220

 

 

559,430

 

 

548,613

 

 

542,007

 

Less: Pledged Securities

 

 

(164,277)

 

 

(236,206)

 

 

(234,452)

 

 

 

 

 

Total Primary Liquidity

 

$

466,416

 

$

440,632

 

$

502,094

 

$

596,703

 

$

578,339

 

Ratio of Primary Liquidity to Total Deposits

 

 

12.7

%

 

12.3

%

 

14.7

%

 

17.5

%

 

17.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secondary Liquidity—Off-Balance Sheet Borrowing Capacity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Secured Borrowing Capacity with the FHLB

 

$

516,501

 

$

400,792

 

$

246,795

 

$

390,898

 

$

426,604

 

Net Secured Borrowing Capacity with the Federal Reserve Bank

 

 

1,022,128

 

 

986,644

 

 

990,685

 

 

157,827

 

 

156,534

 

Unsecured Borrowing Capacity with Correspondent Lenders

 

 

150,000

 

 

108,000

 

 

158,000

 

 

208,000

 

 

208,000

 

Secured Borrowing Capacity with Correspondent Lender

 

 

26,250

 

 

26,250

 

 

26,250

 

 

26,250

 

 

40,000

 

Total Secondary Liquidity

 

$

1,714,879

 

$

1,521,686

 

$

1,421,730

 

$

782,975

 

$

831,138

 

Total Primary and Secondary Liquidity

 

$

2,181,295

 

$

1,962,318

 

$

1,923,824

 

$

1,379,678

 

$

1,409,477

 

Ratio of Primary and Secondary Liquidity to Total Deposits

 

 

59.3

%

 

54.8

%

 

56.4

%

 

40.4

%

 

42.6

%

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 (recoveries) as a percentage of average loans were 0.01% for the third quarter of 2023, compared to 0.00% for the second quarter of 2023, and (0.03)% for the third quarter of 2022.
  • At September 30, 2023, the Company’s nonperforming assets, which include nonaccrual loans, loans past due 90 days and still accruing, and foreclosed assets, were $749,000, or 0.02% of total assets, as compared to $778,000, or 0.02% of total assets at June 30, 2023, and $663,000, or 0.02% of total assets at September 30, 2022.
  • Loans with potential weaknesses that warrant a watchlist risk rating at September 30, 2023 totaled $26.9 million, compared to $27.2 million at June 30, 2023, and $22.8 million at September 30, 2022.
  • Loans that warranted a substandard risk rating at September 30, 2023 totaled $35.6 million, compared to $33.8 million at June 30, 2023, and $30.8 million at September 30, 2022. Increased uncertainty in the economic environment may result in future watchlist or adverse classifications in the loan portfolio.

Capital

Total shareholders’ equity at September 30, 2023 was $416.0 million, an increase of $6.8 million, or 1.7%, compared to total shareholders’ equity of $409.1 million at June 30, 2023, and an increase of $34.0 million, or 8.9%, over total shareholders’ equity of $382.0 million at September 30, 2022.

  • The linked-quarter increase was due to net income retained and unrealized gains in the derivatives portfolio, offset partially by an increase in unrealized losses in the securities portfolio and preferred stock dividends.
  • The year-over-year increase was due to net income retained and unrealized gains in the derivatives portfolio, offset partially by an increase in unrealized losses in the securities portfolio, the adoption of the Current Expected Credit Losses (CECL) accounting methodology and preferred stock dividends.
  • The common equity Tier 1 risk-based capital ratio was 9.07% at September 30, 2023, compared to 8.72% at June 30, 2023 and 8.47% at September 30, 2022.
  • Tangible common equity as a percentage of tangible assets, a non-GAAP financial measure, was 7.61% at September 30, 2023, compared to 7.39% at June 30, 2023, and 7.57% at September 30, 2022.

Tangible book value per share, a non-GAAP financial measure, was $12.37 as of September 30, 2023, an increase of 1.9% from $12.15 as of June 30, 2023, and an increase of 9.2% from $11.33 as of September 30, 2022.

  • The linked-quarter and year-over-year increases occurred despite the market value depreciation of the securities portfolio driven by the rising interest rate environment.

The Company did not purchase any shares of its common stock during the third quarter of 2023.

  • The Company has $25.0 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 December 1, 2023 to shareholders of record of the Series A Preferred Stock at the close of business on November 15, 2023.

Conference Call and Webcast

The Company will host a conference call to discuss its third quarter 2023 financial results on Thursday, October 26, 2023 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 1859973. The replay will be available through November 2, 2023. 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 September 30, 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 recent 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 loan losses; new or revised accounting standards, including as a result of the implementation of the Current Expected Credit Loss standard; 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 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 failures of Silicon Valley Bank, Signature Bank and First Republic Bank; 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 (including the COVID-19 pandemic), 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; 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

 

 

 

September 30,

 

June 30,

 

March 31,

 

December 31

 

September 30,

 

(dollars in thousands)

 

2023

 

 

2023

 

2023

 

2022

 

2022

 

 

Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

$

25,421

 

 

$

25,872

 

$

28,567

 

$

32,893

 

$

34,095

 

 

Provision for (Recovery of) Credit Losses

 

 

(600

)

 

 

50

 

 

625

 

 

1,500

 

 

1,500

 

 

Noninterest Income

 

 

1,726

 

 

 

1,415

 

 

1,943

 

 

1,738

 

 

1,387

 

 

Noninterest Expense

 

 

15,350

 

 

 

14,388

 

 

14,183

 

 

15,203

 

 

14,157

 

 

Net Income

 

 

9,629

 

 

 

9,816

 

 

11,642

 

 

13,735

 

 

14,513

 

 

Net Income Available to Common Shareholders

 

 

8,616

 

 

 

8,802

 

 

10,629

 

 

12,721

 

 

13,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Common Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Share

 

$

0.31

 

 

$

0.32

 

$

0.38

 

$

0.46

 

$

0.49

 

 

Diluted Earnings Per Share

 

 

0.30

 

 

 

0.31

 

 

0.37

 

 

0.45

 

 

0.47

 

 

Book Value Per Share

 

 

12.47

 

 

 

12.25

 

 

12.05

 

 

11.80

 

 

11.44

 

 

Tangible Book Value Per Share (1)

 

 

12.37

 

 

 

12.15

 

 

11.95

 

 

11.69

 

 

11.33

 

 

Basic Weighted Average Shares Outstanding

 

 

27,943,409

 

 

 

27,886,425

 

 

27,726,894

 

 

27,558,983

 

 

27,520,117

 

 

Diluted Weighted Average Shares Outstanding

 

 

28,311,778

 

 

 

28,198,739

 

 

28,490,046

 

 

28,527,306

 

 

28,592,854

 

 

Shares Outstanding at Period End

 

 

28,015,505

 

 

 

27,973,995

 

 

27,845,244

 

 

27,751,950

 

 

27,587,978

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Assets (2)

 

 

0.85

%

 

0.88

%

 

1.07

%

 

1.28

%

 

1.46

%

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

 

 

1.01

 

 

 

1.16

 

 

1.49

 

 

1.82

 

 

2.15

 

 

Return on Average Shareholders' Equity (2)

 

 

9.23

 

 

 

9.69

 

 

11.70

 

 

14.06

 

 

14.99

 

 

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

 

 

9.92

 

 

 

10.48

 

 

12.90

 

 

15.86

 

 

17.03

 

 

Net Interest Margin (3)

 

 

2.32

 

 

 

2.40

 

 

2.72

 

 

3.16

 

 

3.53

 

 

Core Net Interest Margin (1)(3)

 

 

2.24

 

 

 

2.31

 

 

2.62

 

 

3.05

 

 

3.38

 

 

Cost of Total Deposits

 

 

2.99

 

 

 

2.66

 

 

2.01

 

 

1.31

 

 

0.73

 

 

Cost of Funds

 

 

3.10

 

 

 

2.91

 

 

2.41

 

 

1.67

 

 

0.93

 

 

Efficiency Ratio (1)

 

 

56.5

 

 

 

52.7

 

 

46.2

 

 

43.8

 

 

39.8

 

 

Noninterest Expense to Average Assets (2)

 

 

1.35

 

 

 

1.29

 

 

1.31

 

 

1.42

 

 

1.42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

4,557,070

 

 

$

4,603,185

 

$

4,602,899

 

$

4,345,662

 

$

4,128,987

 

 

Total Loans, Gross

 

 

3,722,271

 

 

 

3,736,211

 

 

3,684,360

 

 

3,569,446

 

 

3,380,082

 

 

Deposits

 

 

3,675,509

 

 

 

3,577,932

 

 

3,411,123

 

 

3,416,543

 

 

3,305,074

 

 

Total Shareholders' Equity

 

 

415,960

 

 

 

409,126

 

 

402,006

 

 

394,064

 

 

382,007

 

 

Loan to Deposit Ratio

 

 

101.3

%

 

104.4

%

 

108.0

%

 

104.5

%

 

102.3

%

Core Deposits to Total Deposits (4)

 

 

70.3

 

 

 

70.3

 

 

72.4

 

 

74.6

 

 

83.0

 

 

Uninsured Deposits to Total Deposits

 

 

22.2

 

 

 

22.1

 

 

24.0

 

 

38.5

 

 

42.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

0.01

%

 

0.00

%

 

0.00

%

 

0.00

%

 

(0.03

)%

Nonperforming Assets to Total Assets (5)

 

 

0.02

 

 

 

0.02

 

 

0.02

 

 

0.01

 

 

0.02

 

 

Allowance for Credit Losses to Total Loans

 

 

1.36

 

 

 

1.36

 

 

1.36

 

 

1.34

 

 

1.38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios (Consolidated) (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Leverage Ratio

 

 

9.62

%

 

9.47

%

 

9.41

%

 

9.55

%

 

9.98

%

Common Equity Tier 1 Risk-based Capital Ratio

 

 

9.07

 

 

 

8.72

 

 

8.48

 

 

8.40

 

 

8.47

 

 

Tier 1 Risk-based Capital Ratio

 

 

10.69

 

 

 

10.33

 

 

10.08

 

 

10.03

 

 

10.19

 

 

Total Risk-based Capital Ratio

 

 

13.88

 

 

 

13.50

 

 

13.25

 

 

13.15

 

 

13.78

 

 

Tangible Common Equity to Tangible Assets (1)

 

 

7.61

 

 

 

7.39

 

 

7.23

 

 

7.48

 

 

7.57

 

 

(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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

 

 

 

(Unaudited)

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents

 

$

124,358

 

 

$

177,101

 

 

$

209,192

 

 

$

87,043

 

 

$

75,496

 

Bank-Owned Certificates of Deposit

 

 

1,225

 

 

 

1,225

 

 

 

1,225

 

 

 

1,181

 

 

 

1,182

 

Securities Available for Sale, at Fair Value

 

 

553,076

 

 

 

538,220

 

 

 

559,430

 

 

 

548,613

 

 

 

542,007

 

Loans, Net of Allowance for Credit Losses

 

 

3,664,464

 

 

 

3,677,792

 

 

 

3,625,477

 

 

 

3,512,157

 

 

 

3,324,503

 

Federal Home Loan Bank (FHLB) Stock, at Cost

 

 

17,056

 

 

 

21,557

 

 

 

28,632

 

 

 

19,606

 

 

 

15,603

 

Premises and Equipment, Net

 

 

49,331

 

 

 

49,710

 

 

 

47,801

 

 

 

48,445

 

 

 

48,941

 

Foreclosed Assets

 

 

 

 

 

116

 

 

 

116

 

 

 

 

 

 

 

Accrued Interest

 

 

15,182

 

 

 

13,822

 

 

 

13,377

 

 

 

13,479

 

 

 

11,198

 

Goodwill

 

 

2,626

 

 

 

2,626

 

 

 

2,626

 

 

 

2,626

 

 

 

2,626

 

Other Intangible Assets, Net

 

 

197

 

 

 

206

 

 

 

240

 

 

 

288

 

 

 

336

 

Bank-Owned Life Insurance

 

 

34,209

 

 

 

33,958

 

 

 

33,719

 

 

 

33,485

 

 

 

33,248

 

Other Assets

 

 

95,346

 

 

 

86,852

 

 

 

81,064

 

 

 

78,739

 

 

 

73,847

 

Total Assets

 

$

4,557,070

 

 

$

4,603,185

 

 

$

4,602,899

 

 

$

4,345,662

 

 

$

4,128,987

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Bearing

 

$

754,297

 

 

$

751,217

 

 

$

742,198

 

 

$

884,272

 

 

$

961,084

 

Interest Bearing

 

 

2,921,212

 

 

 

2,826,715

 

 

 

2,668,925

 

 

 

2,532,271

 

 

 

2,343,990

 

Total Deposits

 

 

3,675,509

 

 

 

3,577,932

 

 

 

3,411,123

 

 

 

3,416,543

 

 

 

3,305,074

 

Federal Funds Purchased

 

 

 

 

 

195,000

 

 

 

437,000

 

 

 

287,000

 

 

 

212,000

 

Notes Payable

 

 

13,750

 

 

 

13,750

 

 

 

13,750

 

 

 

13,750

 

 

 

 

FHLB Advances

 

 

294,500

 

 

 

262,000

 

 

 

197,000

 

 

 

97,000

 

 

 

71,500

 

Subordinated Debentures, Net of Issuance Costs

 

 

79,192

 

 

 

79,096

 

 

 

79,001

 

 

 

78,905

 

 

 

92,559

 

Accrued Interest Payable

 

 

3,816

 

 

 

2,974

 

 

 

3,257

 

 

 

2,831

 

 

 

2,214

 

Other Liabilities

 

 

74,343

 

 

 

63,307

 

 

 

59,762

 

 

 

55,569

 

 

 

63,633

 

Total Liabilities

 

 

4,141,110

 

 

 

4,194,059

 

 

 

4,200,893

 

 

 

3,951,598

 

 

 

3,746,980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 September 30, 2023 (unaudited), June 30, 2023 (unaudited), March 31, 2023 (unaudited), December 31, 2022, and September 30, 2022 (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 28,015,505 at September 30, 2023 (unaudited), 27,973,995 at June 30, 2023 (unaudited), 27,845,244 at March 31, 2023 (unaudited), 27,751,950 at December 31, 2022 and 27,587,978 at September 30, 2022 (unaudited)

 

 

280

 

 

 

280

 

 

 

278

 

 

 

278

 

 

 

276

 

Additional Paid-In Capital

 

 

100,120

 

 

 

99,044

 

 

 

97,716

 

 

 

96,529

 

 

 

95,973

 

Retained Earnings

 

 

272,812

 

 

 

264,196

 

 

 

255,394

 

 

 

248,685

 

 

 

235,964

 

Accumulated Other Comprehensive Loss

 

 

(23,766

)

 

 

(20,908

)

 

 

(17,896

)

 

 

(17,942

)

 

 

(16,720

)

Total Shareholders' Equity

 

 

415,960

 

 

 

409,126

 

 

 

402,006

 

 

 

394,064

 

 

 

382,007

 

Total Liabilities and Equity

 

$

4,557,070

 

 

$

4,603,185

 

 

$

4,602,899

 

 

$

4,345,662

 

 

$

4,128,987 

 

 

 

Bridgewater Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income

(dollars in thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

September 30,

 

September 30,

(dollars in thousands)

 

2023

 

2023

 

2023

 

2022

 

2022

 

2023

 

2022

Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, Including Fees

 

$

48,999

 

$

47,721

 

$

44,955

 

$

42,488

 

$

37,666

 

$

141,675

 

$

103,768

Investment Securities

 

 

6,507

 

 

6,237

 

 

6,218

 

 

5,843

 

 

4,372

 

 

18,962

 

 

10,567

Other

 

 

1,303

 

 

1,043

 

 

819

 

 

529

 

 

321

 

 

3,165

 

 

500

Total Interest Income

 

 

56,809

 

 

55,001

 

 

51,992

 

 

48,860

 

 

42,359

 

 

163,802

 

 

114,835

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

27,225

 

 

22,998

 

 

16,374

 

 

10,781

 

 

5,984

 

 

66,597

 

 

12,598

Notes Payable

 

 

296

 

 

285

 

 

263

 

 

202

 

 

 

 

844

 

 

FHLB Advances

 

 

2,316

 

 

2,092

 

 

861

 

 

575

 

 

329

 

 

5,269

 

 

646

Subordinated Debentures

 

 

1,003

 

 

993

 

 

983

 

 

1,030

 

 

1,242

 

 

2,979

 

 

3,658

Federal Funds Purchased

 

 

548

 

 

2,761

 

 

4,944

 

 

3,379

 

 

709

 

 

8,253

 

 

1,128

Total Interest Expense

 

 

31,388

 

 

29,129

 

 

23,425

 

 

15,967

 

 

8,264

 

 

83,942

 

 

18,030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

 

25,421

 

 

25,872

 

 

28,567

 

 

32,893

 

 

34,095

 

 

79,860

 

 

96,805

Provision for (Recovery of) Credit Losses

 

 

(600)

 

 

50

 

 

625

 

 

1,500

 

 

1,500

 

 

75

 

 

6,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income After Provision for Credit Losses

 

 

26,021

 

 

25,822

 

 

27,942

 

 

31,393

 

 

32,595

 

 

79,785

 

 

90,605

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer Service Fees

 

 

379

 

 

368

 

 

349

 

 

344

 

 

313

 

 

1,096

 

 

892

Net Gain (Loss) on Sales of Securities

 

 

 

 

50

 

 

(56)

 

 

30

 

 

 

 

(6)

 

 

52

Letter of Credit Fees

 

 

315

 

 

379

 

 

634

 

 

358

 

 

428

 

 

1,328

 

 

1,234

Debit Card Interchange Fees

 

 

150

 

 

155

 

 

138

 

 

148

 

 

153

 

 

443

 

 

438

Swap Fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

557

Bank-Owned Life Insurance

 

 

252

 

 

238

 

 

234

 

 

238

 

 

227

 

 

724

 

 

524

FHLB Prepayment Income

 

 

493

 

 

 

 

299

 

 

 

 

 

 

792

 

 

Other Income

 

 

137

 

 

225

 

 

345

 

 

620

 

 

266

 

 

707

 

 

897

Total Noninterest Income

 

 

1,726

 

 

1,415

 

 

1,943

 

 

1,738

 

 

1,387

 

 

5,084

 

 

4,594

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and Employee Benefits

 

 

9,519

 

 

8,589

 

 

8,815

 

 

9,821

 

 

9,449

 

 

26,923

 

 

27,120

Occupancy and Equipment

 

 

1,101

 

 

1,075

 

 

1,209

 

 

1,177

 

 

1,086

 

 

3,385

 

 

3,213

FDIC Insurance Assessment

 

 

1,075

 

 

900

 

 

665

 

 

360

 

 

315

 

 

2,640

 

 

1,005

Data Processing

 

 

392

 

 

401

 

 

357

 

 

371

 

 

372

 

 

1,150

 

 

1,025

Professional and Consulting Fees

 

 

715

 

 

829

 

 

755

 

 

635

 

 

594

 

 

2,299

 

 

2,030

Derivative Collateral Fees

 

 

543

 

 

404

 

 

380

 

 

535

 

 

122

 

 

1,327

 

 

151

Information Technology and Telecommunications

 

 

683

 

 

711

 

 

683

 

 

673

 

 

650

 

 

2,077

 

 

1,822

Marketing and Advertising

 

 

222

 

 

321

 

 

262

 

 

403

 

 

479

 

 

805

 

 

1,629

Intangible Asset Amortization

 

 

9

 

 

34

 

 

48

 

 

48

 

 

48

 

 

91

 

 

143

Amortization of Tax Credit Investments

 

 

113

 

 

114

 

 

114

 

 

114

 

 

114

 

 

341

 

 

294

Other Expense

 

 

978

 

 

1,010

 

 

895

 

 

1,066

 

 

928

 

 

2,883

 

 

2,985

Total Noninterest Expense

 

 

15,350

 

 

14,388

 

 

14,183

 

 

15,203

 

 

14,157

 

 

43,921

 

 

41,417

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes

 

 

12,397

 

 

12,849

 

 

15,702

 

 

17,928

 

 

19,825

 

 

40,948

 

 

53,782

Provision for Income Taxes

 

 

2,768

 

 

3,033

 

 

4,060

 

 

4,193

 

 

5,312

 

 

9,861

 

 

14,125

Net Income

 

 

9,629

 

 

9,816

 

 

11,642

 

 

13,735

 

 

14,513

 

 

31,087

 

 

39,657

Preferred Stock Dividends

 

 

(1,013)

 

 

(1,014)

 

 

(1,013)

 

 

(1,014)

 

 

(1,013)

 

 

(3,040)

 

 

(3,040)

Net Income Available to Common Shareholders

 

$

8,616

 

$

8,802

 

$

10,629

 

$

12,721

 

$

13,500

 

$

28,047

 

$

36,617

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.31

 

$

0.32

 

$

0.38

 

$

0.46

 

$

0.49

 

$

1.01

 

$

1.32

Diluted

 

 

0.30

 

 

0.31

 

 

0.37

 

 

0.45

 

 

0.47

 

 

0.99

 

 

1.27

 

 

Bridgewater Bancshares, Inc. and Subsidiaries

Analysis of Average Balances, Yields and Rates

(dollars in thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

September 30, 2023

 

June 30, 2023

 

September 30, 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

 

$

81,038

 

$

903

 

4.42

%

$

59,963

 

$

587

 

3.93

%

$

57,613

 

$

165

 

1.13

%

Investment Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable Investment Securities

 

 

565,008

 

 

6,234

 

4.38

 

 

568,143

 

 

6,000

 

4.24

 

 

461,255

 

 

3,741

 

3.22

 

Tax-Exempt Investment Securities (1)

 

 

29,955

 

 

346

 

4.58

 

 

27,081

 

 

300

 

4.44

 

 

75,801

 

 

799

 

4.18

 

Total Investment Securities

 

 

594,963

 

 

6,580

 

4.39

 

 

595,224

 

 

6,300

 

4.24

 

 

537,056

 

 

4,540

 

3.35

 

Paycheck Protection Program Loans (2)

 

 

828

 

 

2

 

1.00

 

 

913

 

 

2

 

1.00

 

 

2,424

 

 

96

 

15.75

 

Loans (1)(2)

 

 

3,721,766

 

 

49,324

 

5.26

 

 

3,715,621

 

 

48,064

 

5.19

 

 

3,263,390

 

 

37,724

 

4.59

 

Total Loans

 

 

3,722,594

 

 

49,326

 

5.26

 

 

3,716,534

 

 

48,066

 

5.19

 

 

3,265,814

 

 

37,820

 

4.59

 

Federal Home Loan Bank Stock

 

 

17,829

 

 

400

 

8.89

 

 

23,330

 

 

456

 

7.84

 

 

11,413

 

 

156

 

5.42

 

Total Interest Earning Assets

 

 

4,416,424

 

 

57,209

 

5.14

%

 

4,395,051

 

 

55,409

 

5.06

%

 

3,871,896

 

 

42,681

 

4.37

%

Noninterest Earning Assets

 

 

88,513

 

 

 

 

 

 

 

88,611

 

 

 

 

 

 

 

76,305

 

 

 

 

 

 

Total Assets

 

$

4,504,937

 

 

 

 

 

 

$

4,483,662

 

 

 

 

 

 

$

3,948,201

 

 

 

 

 

 

Interest Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Bearing Transaction Deposits

 

$

730,244

 

$

7,136

 

3.88

%

$

683,034

 

$

5,918

 

3.48

%

$

517,658

 

$

1,032

 

0.79

%

Savings and Money Market Deposits

 

 

874,612

 

 

8,089

 

3.67

 

 

861,947

 

 

7,048

 

3.28

 

 

999,932

 

 

2,494

 

0.99

 

Time Deposits

 

 

266,635

 

 

1,962

 

2.92

 

 

269,439

 

 

1,702

 

2.53

 

 

288,621

 

 

847

 

1.16

 

Brokered Deposits

 

 

985,276

 

 

10,038

 

4.04

 

 

896,989

 

 

8,330

 

3.72

 

 

447,034

 

 

1,612

 

1.43

 

Total Interest Bearing Deposits

 

 

2,856,767

 

 

27,225

 

3.78

 

 

2,711,409

 

 

22,998

 

3.40

 

 

2,253,245

 

 

5,985

 

1.05

 

Federal Funds Purchased

 

 

39,641

 

 

548

 

5.48

 

 

210,677

 

 

2,761

 

5.26

 

 

106,826

 

 

709

 

2.63

 

Notes Payable

 

 

13,750

 

 

296

 

8.58

 

 

13,750

 

 

285

 

8.33

 

 

 

 

 

 

FHLB Advances

 

 

275,261

 

 

2,316

 

3.34

 

 

242,714

 

 

2,092

 

3.46

 

 

72,343

 

 

328

 

1.80

 

Subordinated Debentures

 

 

79,137

 

 

1,003

 

5.03

 

 

79,041

 

 

993

 

5.04

 

 

92,503

 

 

1,242

 

5.33

 

Total Interest Bearing Liabilities

 

 

3,264,556

 

 

31,388

 

3.81

%

 

3,257,591

 

 

29,129

 

3.59

%

 

2,524,917

 

 

8,264

 

1.30

%

Noninterest Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Bearing Transaction Deposits

 

 

754,567

 

 

 

 

 

 

 

755,040

 

 

 

 

 

 

 

991,545

 

 

 

 

 

 

Other Noninterest Bearing Liabilities

 

 

71,767

 

 

 

 

 

 

 

64,684

 

 

 

 

 

 

 

47,719

 

 

 

 

 

 

Total Noninterest Bearing Liabilities

 

 

826,334

 

 

 

 

 

 

 

819,724

 

 

 

 

 

 

 

1,039,264

 

 

 

 

 

 

Shareholders' Equity

 

 

414,047

 

 

 

 

 

 

 

406,347

 

 

 

 

 

 

 

384,020

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

 

$

4,504,937

 

 

 

 

 

 

$

4,483,662

 

 

 

 

 

 

$

3,948,201

 

 

 

 

 

 

Net Interest Income / Interest Rate Spread

 

 

 

 

 

25,821

 

1.33

%

 

 

 

 

26,280

 

1.47

%

 

 

 

 

34,417

 

3.07

%

Net Interest Margin (3)

 

 

 

 

 

 

 

2.32

%

 

 

 

 

 

 

2.40

%

 

 

 

 

 

 

3.53

%

Taxable Equivalent Adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax-Exempt Investment Securities and Loans

 

 

 

 

 

(400)

 

 

 

 

 

 

 

(408)

 

 

 

 

 

 

 

(322)

 

 

 

Net Interest Income

 

 

 

 

$

25,421

 

 

 

 

 

 

$

25,872

 

 

 

 

 

 

$

34,095

 

 

 

(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 Nine Months Ended

 

 

 

September 30, 2023

 

September 30, 2022

 

 

 

Average

 

Interest

 

Yield/

 

Average

 

Interest

 

Yield/

 

(dollars in thousands)

 

Balance

 

& Fees

 

Rate

 

Balance

 

& Fees

 

Rate

 

Interest Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Investments

 

$

68,150

 

$

1,937

 

 

3.80

%

$

66,301

 

$

231

 

 

0.47

%

Investment Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable Investment Securities

 

 

569,097

 

 

18,192

 

 

4.27

 

 

417,462

 

 

8,692

 

 

2.78

 

Tax-Exempt Investment Securities (1)

 

 

28,947

 

 

975

 

 

4.50

 

 

73,900

 

 

2,373

 

 

4.29

 

Total Investment Securities

 

 

598,044

 

 

19,167

 

 

4.29

 

 

491,362

 

 

11,065

 

 

3.01

 

Paycheck Protection Program Loans (2)

 

 

913

 

 

7

 

 

1.00

 

 

9,575

 

 

922

 

 

12.88

 

Loans (1)(2)

 

 

3,689,283

 

 

142,652

 

 

5.17

 

 

3,082,924

 

 

103,204

 

 

4.48

 

Total Loans

 

 

3,690,196

 

 

142,659

 

 

5.17

 

 

3,092,499

 

 

104,126

 

 

4.50

 

Federal Home Loan Bank Stock

 

 

22,343

 

 

1,228

 

 

7.34

 

 

9,593

 

 

269

 

 

3.75

 

Total Interest Earning Assets

 

 

4,378,733

 

 

164,991

 

 

5.04

%

 

3,659,755

 

 

115,691

 

 

4.23

%

Noninterest Earning Assets

 

 

86,243

 

 

 

 

 

 

 

77,028

 

 

 

 

 

 

Total Assets

 

$

4,464,976

 

 

 

 

 

 

$

3,736,783

 

 

 

 

 

 

Interest Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Bearing Transaction Deposits

 

$

625,531

 

$

15,833

 

 

3.38

%

$

545,301

 

$

2,322

 

 

0.57

%

Savings and Money Market Deposits

 

 

926,494

 

 

21,636

 

 

3.12

 

 

934,408

 

 

4,597

 

 

0.66

 

Time Deposits

 

 

261,474

 

 

4,734

 

 

2.42

 

 

286,059

 

 

2,257

 

 

1.05

 

Brokered Deposits

 

 

876,130

 

 

24,394

 

 

3.72

 

 

419,352

 

 

3,422

 

 

1.09

 

Total Interest Bearing Deposits

 

 

2,689,629

 

 

66,597

 

 

3.31

 

 

2,185,120

 

 

12,598

 

 

0.77

 

Federal Funds Purchased

 

 

220,434

 

 

8,253

 

 

5.01

 

 

85,287

 

 

1,128

 

 

1.77

 

Notes Payable

 

 

13,750

 

 

844

 

 

8.21

 

 

 

 

 

 

 

FHLB Advances

 

 

215,938

 

 

5,269

 

 

3.26

 

 

54,227

 

 

646

 

 

1.59

 

Subordinated Debentures

 

 

79,042

 

 

2,979

 

 

5.04

 

 

92,396

 

 

3,658

 

 

5.29

 

Total Interest Bearing Liabilities

 

 

3,218,793

 

 

83,942

 

 

3.49

%

 

2,417,030

 

 

18,030

 

 

1.00

%

Noninterest Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Bearing Transaction Deposits

 

 

774,523

 

 

 

 

 

 

 

899,456

 

 

 

 

 

 

Other Noninterest Bearing Liabilities

 

 

63,646

 

 

 

 

 

 

 

37,463

 

 

 

 

 

 

Total Noninterest Bearing Liabilities

 

 

838,169

 

 

 

 

 

 

 

936,919

 

 

 

 

 

 

Shareholders' Equity

 

 

408,014

 

 

 

 

 

 

 

382,834

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

 

$

4,464,976

 

 

 

 

 

 

$

3,736,783

 

 

 

 

 

 

Net Interest Income / Interest Rate Spread

 

 

 

 

 

81,049

 

 

1.55

%

 

 

 

 

97,661

 

 

3.23

%

Net Interest Margin (3)

 

 

 

 

 

 

 

2.47

%

 

 

 

 

 

 

3.57

%

Taxable Equivalent Adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax-Exempt Investment Securities and Loans

 

 

 

 

 

(1,189

)

 

 

 

 

 

 

 

(856

)

 

 

 

Net Interest Income

 

 

 

 

$

79,860

 

 

 

 

 

 

 

$

96,805

 

 

 

 

(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 Nine Months Ended

 

 

 

September 30,

 

June 30,

 

March 31,

 

December 31

 

September 30,

 

September 30,

 

September 30,

 

(dollars in thousands)

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

 

2023

 

 

2022

 

 

Allowance for Credit Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at Beginning of Period

 

$

50,701

 

 

$

50,148

 

 

$

47,996

 

 

$

46,491

 

 

$

44,711

 

 

$

47,996

 

 

$

40,020

 

 

Impact of Adopting CECL

 

 

 

 

 

 

 

 

650

 

 

 

 

 

 

 

 

 

650

 

 

 

 

 

Provision for Credit Losses

 

 

 

 

 

550

 

 

 

1,500

 

 

 

1,500

 

 

 

1,500

 

 

 

2,050

 

 

 

6,200

 

 

Charge-offs

 

 

(122

)

 

 

(3

)

 

 

(4

)

 

 

(3

)

 

 

(5

)

 

 

(129

)

 

 

(34

)

 

Recoveries

 

 

6

 

 

 

6

 

 

 

6

 

 

 

8

 

 

 

285

 

 

 

18

 

 

 

305

 

 

Net Charge-offs

 

$

(116

)

 

$

3

 

 

$

2

 

 

$

5

 

 

$

280

 

 

$

(111

)

 

$

271

 

 

Balance at End of Period

 

 

50,585

 

 

 

50,701

 

 

 

50,148

 

 

 

47,996

 

 

 

46,491

 

 

 

50,585

 

 

 

46,491

 

 

Allowance for Credit Losses to Total Loans

 

 

1.36

%

 

1.36

%

 

1.36

%

 

1.34

%

 

1.38

%

 

1.36

%

 

1.38

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Three Months Ended

 

As of and for the Nine Months Ended

 

 

 

September 30,

 

June 30,

 

March 31,

 

December 31

 

September 30,

 

September 30,

 

September 30,

 

(dollars in thousands)

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

 

2023

 

 

2022

 

 

Provision for Credit Losses on Loans

 

$

 

 

$

550

 

 

$

1,500

 

 

$

1,500

 

 

$

1,500

 

 

$

2,050

 

 

$

6,200

 

 

Provision for (Recovery of) Credit Losses for Off-Balance Sheet Credit Exposures

 

 

(600

)

 

 

(500

)

 

 

(875

)

 

 

 

 

 

 

 

 

(1,975

)

 

 

 

 

Provision for (Recovery of) Credit Losses

 

$

(600

)

 

$

50

 

 

$

625

 

 

$

1,500

 

 

$

1,500

 

 

$

75

 

 

$

6,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Three Months Ended

 

 

 

September 30,

 

June 30,

 

March 31,

 

December 31

 

September 30,

 

(dollars in thousands)

 

2023

 

2023

 

2023

 

2022

 

2022

 

Selected Asset Quality Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans 30-89 Days Past Due

 

$

11

 

$

 

$

21

 

$

186

 

$

38

 

 

Loans 30-89 Days Past Due to Total Loans

 

 

0.00

%

 

0.00

%

 

0.00

%

 

0.01

%

 

0.00

%

Nonperforming Loans

 

$

749

 

$

662

 

$

693

 

$

639

 

$

663

 

 

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)

 

$

749

 

$

778

 

$

809

 

$

639

 

$

663

 

 

Nonperforming Assets to Total Assets (1)

 

 

0.02

%

 

0.02

%

 

0.02

%

 

0.01

%

 

0.02

%

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

 

 

0.01

 

 

0.00

 

 

0.00

 

 

0.00

 

 

(0.03

)

 

Watchlist Risk Rating Loans

 

$

26,877

 

$

27,215

 

$

27,574

 

$

32,252

 

$

22,759

 

 

Substandard Risk Rating Loans

 

 

35,621

 

 

33,821

 

 

36,258

 

 

28,049

 

 

30,767

 

 

 

 

Bridgewater Bancshares, Inc. and Subsidiaries

Non-GAAP Financial Measures

(dollars in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

September 30,

 

September 30,

 

(dollars in thousands)

 

2023

 

2023

 

2022

 

2022

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-Provision Net Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Income

 

$

1,726

 

 

$

1,415

 

 

$

1,943

 

 

$

1,738

 

 

$

1,387

 

 

$

5,084

 

 

$

4,594

 

 

Less: (Gain) Loss on Sales of Securities

 

 

 

 

 

(50

)

 

 

56

 

 

 

(30

)

 

 

 

 

 

6

 

 

 

(52

)

 

Less: FHLB Advance Prepayment Income

 

 

(493

)

 

 

 

 

 

(299

)

 

 

 

 

 

 

 

 

(792

)

 

 

 

 

Total Operating Noninterest Income

 

 

1,233

 

 

 

1,365

 

 

 

1,700

 

 

 

1,708

 

 

 

1,387

 

 

 

4,298

 

 

 

4,542

 

 

Plus: Net Interest Income

 

 

25,421

 

 

 

25,872

 

 

 

28,567

 

 

 

32,893

 

 

 

34,095

 

 

 

79,860

 

 

 

96,805

 

 

Net Operating Revenue

 

$

26,654

 

 

$

27,237

 

 

$

30,267

 

 

$

34,601

 

 

$

35,482

 

 

$

84,158

 

 

$

101,347

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expense

 

$

15,350

 

 

$

14,388

 

 

$

14,183

 

 

$

15,203

 

 

$

14,157

 

 

$

43,921

 

 

$

41,417

 

 

Less: Amortization of Tax Credit Investments

 

 

(113

)

 

 

(114

)

 

 

(114

)

 

 

(114

)

 

 

(114

)

 

 

(341

)

 

 

(294

)

 

Total Operating Noninterest Expense

 

$

15,237

 

 

$

14,274

 

 

$

14,069

 

 

$

15,089

 

 

$