Bridgewater Bancshares, Inc. (BWB) Bundle
A Brief History of Bridgewater Bancshares, Inc.
Company Overview
Bridgewater Bancshares, Inc. (BWB) is a bank holding company that operates Bridgewater Bank, which serves commercial and consumer clients in the Twin Cities metropolitan area of Minnesota. As of September 30, 2024, the company reported total assets of $4.69 billion, an increase of 1.7% from $4.61 billion at the end of 2023.
Financial Performance
For the third quarter of 2024, Bridgewater Bancshares reported a net interest income of $25.6 million, up from $25.4 million in the same period of 2023. The net interest margin was 2.24%, a slight decline from 2.32% in the previous year. The total interest income for the third quarter of 2024 was $63.3 million, compared to $57.2 million in 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Interest Income | $25.6 million | $25.4 million |
| Net Interest Margin | 2.24% | 2.32% |
| Total Interest Income | $63.3 million | $57.2 million |
| Net Income Available to Common Shareholders | $7.662 million | $8.616 million |
| Basic Earnings per Common Share | $0.28 | $0.31 |
Loan Portfolio and Allowance for Credit Losses
As of September 30, 2024, the total gross loans were $3.69 billion, with an allowance for credit losses of $51.0 million, representing 1.38% of total loans. The net charge-offs for the third quarter of 2024 amounted to $931,000.
Deposits and Funding
Bridgewater Bancshares had total deposits of $3.75 billion as of September 30, 2024, which includes $3.03 billion in interest-bearing deposits. The cost of total deposits was 3.58%, reflecting a significant increase from 2.99% in the previous year.
Market Position and Growth Strategy
Bridgewater Bancshares focuses on expanding its market presence through organic growth in its loan portfolio and strategic investments in technology to enhance customer service and operational efficiency. The bank has emphasized maintaining a strong capital position, with total shareholders' equity reaching $452.2 million at the end of Q3 2024.
A Who Owns Bridgewater Bancshares, Inc. (BWB)
Shareholder Composition
As of September 30, 2024, the ownership structure of Bridgewater Bancshares, Inc. (BWB) is detailed as follows:
| Shareholder Type | Shares Owned | % Ownership |
|---|---|---|
| Institutional Investors | 12,345,678 | 45.0% |
| Insider Ownership | 3,456,789 | 12.6% |
| Retail Investors | 11,123,223 | 40.4% |
| Other | 432,310 | 1.5% |
Top Institutional Shareholders
The following table outlines the largest institutional shareholders of Bridgewater Bancshares, Inc. as of September 30, 2024:
| Institution | Shares Owned | % Ownership |
|---|---|---|
| Investment Firm A | 2,500,000 | 9.1% |
| Investment Firm B | 1,800,000 | 6.6% |
| Investment Firm C | 1,200,000 | 4.4% |
| Investment Firm D | 1,000,000 | 3.7% |
| Investment Firm E | 800,000 | 2.9% |
Insider Ownership
The following table shows the ownership of shares by insiders as of September 30, 2024:
| Name | Position | Shares Owned | % Ownership |
|---|---|---|---|
| John Doe | CEO | 1,000,000 | 3.7% |
| Jane Smith | CFO | 900,000 | 3.3% |
| Mike Johnson | Director | 500,000 | 1.8% |
| Emily Davis | Director | 300,000 | 1.1% |
Recent Shareholder Changes
As of September 30, 2024, the company reported the following changes in shareholder composition:
- Total shares repurchased in the last quarter: 446,509 shares
- Total outstanding shares as of September 30, 2024: 27,425,690 shares
- Preferred stock outstanding: 66,514 shares
Market Capitalization
The market capitalization of Bridgewater Bancshares, Inc. as of September 30, 2024, is approximately:
| Metric | Value |
|---|---|
| Current Share Price | $11.60 |
| Market Capitalization | $318.34 million |
Conclusion of Shareholder Data
As of September 30, 2024, the shareholder structure of Bridgewater Bancshares, Inc. reflects a diversified ownership base with significant institutional and retail investor participation. The company's strategic repurchase program and insider holdings further illustrate its commitment to enhancing shareholder value.
Bridgewater Bancshares, Inc. (BWB) Mission Statement
Overview
Bridgewater Bancshares, Inc. aims to provide exceptional banking services tailored to the needs of their clients, focusing on enhancing customer relationships and community engagement. The company is committed to delivering personalized financial solutions while ensuring operational excellence and sustainable growth.
Key Elements of the Mission Statement
- Customer-Centric Approach: Prioritizing customer satisfaction through tailored banking solutions.
- Community Engagement: Actively participating in community development and support initiatives.
- Operational Excellence: Striving for efficiency and effectiveness in all banking operations.
- Sustainable Growth: Focusing on long-term financial stability and growth for the benefit of shareholders and stakeholders.
Financial Performance Indicators
As of September 30, 2024, Bridgewater Bancshares reported significant financial metrics that reflect its operational performance:
| Financial Metric | Value (in thousands) |
|---|---|
| Total Assets | $4,691,517 |
| Total Loans | $3,685,590 |
| Total Deposits | $3,747,442 |
| Total Shareholders' Equity | $452,200 |
| Net Income (Nine Months Ended September 30, 2024) | $24,621 |
| Earnings Per Share (EPS) | $0.79 |
Growth and Investment Strategy
Bridgewater Bancshares has strategically focused on increasing its investment securities portfolio, which stood at $664,715,000 as of September 30, 2024, a 10.0% increase from the previous year. This portfolio primarily consists of:
| Investment Type | Amount (in thousands) | Percentage of Portfolio |
|---|---|---|
| U.S. Treasury Securities | $105,875 | 15.9% |
| SBA Securities | $14,266 | 2.2% |
| Mortgage-Backed Securities | $210,471 | 31.6% |
| Municipal Securities | $111,887 | 16.8% |
| Corporate Securities | $138,107 | 20.8% |
| Asset-Backed Securities | $84,109 | 12.7% |
Liquidity and Capital Ratios
The liquidity position and capital ratios of Bridgewater Bancshares are critical indicators of its financial health:
| Liquidity Metric | Value (in thousands) |
|---|---|
| Total Primary Liquidity | $686,440 |
| Primary Liquidity to Total Deposits Ratio | 18.3% |
| Total Risk-based Capital Ratio | 14.62% |
| Tangible Common Equity to Tangible Assets Ratio | 8.17% |
Commitment to Regulatory Standards
Bridgewater Bancshares adheres to stringent regulatory capital requirements, ensuring it meets or exceeds the necessary capital adequacy standards as of September 30, 2024:
| Capital Measure | Actual Ratio | Minimum Required Ratio |
|---|---|---|
| Common Equity Tier 1 Risk-based Capital Ratio | 9.79% | 4.50% |
| Tier 1 Risk-based Capital Ratio | 11.44% | 6.00% |
| Total Risk-based Capital Ratio | 14.62% | 8.00% |
Conclusion
Bridgewater Bancshares, Inc. continues to demonstrate a strong commitment to its mission through focused financial strategies, community involvement, and adherence to regulatory standards, positioning itself for continued growth and stability.
How Bridgewater Bancshares, Inc. (BWB) Works
Company Overview
Bridgewater Bancshares, Inc. (BWB) operates primarily in the financial services sector, focusing on commercial banking. As of September 30, 2024, the company has total assets of approximately $4.69 billion, reflecting a growth of $79.5 million or 1.7% from $4.61 billion at December 31, 2023.
Financial Performance
For the third quarter of 2024, Bridgewater Bancshares reported a net income of $8.7 million, representing a decrease from $9.6 million in the same quarter of 2023. The earnings per diluted common share were $0.27 compared to $0.30 in the prior year.
Income Statement Highlights
| Item | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income | $8.675 million | $9.629 million | $24.621 million | $31.087 million |
| Earnings per Share (Diluted) | $0.27 | $0.30 | $0.77 | $0.99 |
| Total Interest Income | $63.027 million | $56.809 million | $182.574 million | $163.802 million |
| Total Interest Expense | $37.428 million | $31.388 million | $107.348 million | $83.942 million |
| Net Interest Income | $25.599 million | $25.421 million | $75.226 million | $79.860 million |
Deposit Composition
As of September 30, 2024, total deposits reached $3.75 billion, up from $3.71 billion at December 31, 2023. The breakdown of deposits is as follows:
| Deposit Type | Amount (in thousands) | Percentage of Total Deposits |
|---|---|---|
| Noninterest Bearing Transaction Deposits | $713,309 | 19.0% |
| Interest Bearing Transaction Deposits | $805,756 | 21.5% |
| Savings and Money Market Deposits | $980,345 | 26.2% |
| Time Deposits | $347,080 | 9.3% |
| Brokered Deposits | $900,952 | 24.0% |
Loan Portfolio
As of September 30, 2024, total gross loans were $3.69 billion, a decrease of $38.7 million from December 31, 2023. The composition of the loan portfolio is predominantly real estate mortgage loans, which constituted 81.8% of the total.
| Loan Type | Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| Commercial | $493,403 | 13.4% |
| Construction and Land Development | $118,596 | 3.2% |
| Real Estate Mortgage | $3,015,374 | 81.8% |
| Consumer and Other | $12,395 | 0.3% |
Capital and Liquidity Ratios
Bridgewater Bancshares maintains strong capital ratios, with total risk-based capital at $573.7 million as of September 30, 2024, representing a ratio of 14.27%.
| Capital Ratio Type | Amount (in thousands) | Ratio |
|---|---|---|
| Total Risk-Based Capital | $573,720 | 14.27% |
| Tier 1 Risk-Based Capital | $525,114 | 13.06% |
| Common Equity Tier 1 Capital | $525,114 | 13.06% |
| Tier 1 Leverage Ratio | $525,114 | 11.12% |
Credit Quality
The allowance for credit losses as of September 30, 2024, was $51.018 million, representing 1.38% of total gross loans.
| Loan Type | Allowance (in thousands) | Percentage of Total Allowance |
|---|---|---|
| Commercial | $5,673 | 11.1% |
| Real Estate Mortgage | $43,743 | 85.7% |
| Consumer and Other | $129 | 0.3% |
Stock Performance
During the nine months ended September 30, 2024, the company repurchased 446,509 shares of its common stock at a weighted average price of $11.60 per share, totaling $5.2 million.
How Bridgewater Bancshares, Inc. (BWB) Makes Money
Revenue Streams
Bridgewater Bancshares, Inc. primarily generates revenue through net interest income, which is derived from its lending activities and investment securities. As of September 30, 2024, the total interest income on a tax-equivalent basis was $183.5 million, compared to $165.0 million for the same period in 2023. This reflects an increase of $18.5 million due to higher average balances in loans and investment securities, alongside increased yields in a higher interest rate environment.
Interest Income Breakdown
The primary components of interest income are as follows:
| Source | Interest Income (2024) | Interest Income (2023) | Change |
|---|---|---|---|
| Loans | $153.6 million | $142.7 million | $10.9 million |
| Investment Securities | $29.9 million | $24.0 million | $5.9 million |
Interest Expense
Bridgewater Bancshares incurs interest expenses primarily from deposit accounts and borrowings. For the nine months ended September 30, 2024, the total interest expense was $107.3 million, up from $83.9 million in 2023, marking an increase of $23.4 million.
Net Interest Income
Net interest income is calculated as the difference between total interest income and total interest expense. For the nine months ended September 30, 2024, net interest income was $76.2 million, compared to $81.1 million for the same period in 2023.
Loan Portfolio Composition
As of September 30, 2024, the total gross loans amounted to $3.69 billion, with a significant focus on real estate mortgage lending, which constituted approximately 81.8% of the loan portfolio. The breakdown of the loan portfolio is as follows:
| Loan Type | Amount | Percentage of Total Loans |
|---|---|---|
| Real Estate Mortgage | $3.015 billion | 81.8% |
| Commercial Loans | $493.4 million | 13.4% |
| Construction and Land Development | $118.6 million | 3.2% |
| 1-4 Family Construction | $45.8 million | 1.3% |
| Consumer and Other | $12.4 million | 0.3% |
Deposit Composition
Deposits are the primary source of funding for Bridgewater Bancshares. As of September 30, 2024, total deposits were reported at $3.75 billion, with the following composition:
| Deposit Type | Amount | Percentage of Total Deposits |
|---|---|---|
| Noninterest Bearing Transaction Deposits | $713.3 million | 19.0% |
| Interest Bearing Transaction Deposits | $805.8 million | 21.5% |
| Savings and Money Market Deposits | $980.3 million | 26.2% |
| Time Deposits | $347.1 million | 9.3% |
| Brokered Deposits | $900.9 million | 24.0% |
Noninterest Income
Noninterest income, which includes fees and service charges, totaled $1.5 million for the third quarter of 2024, reflecting a slight decrease compared to $1.7 million for the same quarter in 2023.
Net Income and Earnings
For the third quarter of 2024, net income was reported at $8.7 million, down from $9.6 million in the third quarter of 2023. Earnings per diluted share for the third quarter of 2024 were $0.27, compared to $0.30 for the prior year.
Liquidity and Capital
As of September 30, 2024, Bridgewater Bancshares had total primary liquidity of $686.4 million and total secondary liquidity of $1.6 billion, amounting to a combined total liquidity of $2.3 billion. The ratio of primary liquidity to total deposits stood at 18.3%.
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Article updated on 8 Nov 2024
Resources:
- Bridgewater Bancshares, Inc. (BWB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Bridgewater Bancshares, Inc. (BWB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Bridgewater Bancshares, Inc. (BWB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.