Acquisition and Merger - The Company completed the acquisition of FMCB on December 13, 2024, adding approximately $245.0 million in assets, $225.7 million in deposits, and $117.1 million in loans and leases[165] - During the three and nine months ended September 30, 2025, the Company incurred merger-related expenses of $530,000 and $1.6 million, respectively[165] - The acquisition of FMCB aligns with the Company's strategic priorities for growth within the Twin Cities market[165] - The company’s loan portfolio growth was primarily due to increased loan originations and the acquisition of FMCB in Q4 2024[227] Financial Performance - Net income for Q3 2025 was $11.6 million, up from $8.7 million in Q3 2024, representing a year-over-year increase of 33.4%[172] - Diluted earnings per share for Q3 2025 were $0.38, compared to $0.27 in Q3 2024, reflecting a 40.7% increase[172] - Net interest income increased to $34.1 million in Q3 2025 from $26.9 million in Q3 2024, a growth of 26.5%[169] - Noninterest income for Q3 2025 was $2.1 million, compared to $1.5 million in Q3 2024, marking a 37.0% increase[169] - Adjusted net income for Q3 2025 was $12.0 million, up from $8.9 million in Q3 2024, a significant increase of 34.8%[172] Assets and Loans - Total assets reached $5.36 billion as of September 30, 2025, up from $4.69 billion a year earlier, indicating a growth of 14.7%[169] - Total loans, gross, increased to $4.21 billion in Q3 2025 from $3.69 billion in Q3 2024, a rise of 14.3%[169] - The loan to deposit ratio was 98.2% as of September 30, 2025, compared to 94.7% a year prior, indicating a tightening of liquidity[169] - Total gross loans reached $4.21 billion at September 30, 2025, an increase of $346.0 million, or 8.9%, from $3.87 billion at December 31, 2024[227] Credit Quality and Risk Management - The Company emphasizes the importance of managing credit risk and maintaining an adequate level of allowance for credit losses on loans[161] - Nonperforming loans were $9.99 million, representing 0.24% of total loans, stable compared to 0.24% in the previous quarter[170] - The allowance for credit losses on loans and leases to total loans was 1.34% at September 30, 2025, compared to 1.38% at September 30, 2024[205] - The allowance for credit losses was $56.39 million as of September 30, 2025, reflecting a consistent approach to credit quality management[229] Deposits and Funding - Total deposits reached $4.29 billion as of September 30, 2025, an increase of $206 million, or 5.0%, compared to $4.09 billion at December 31, 2024[246] - Core deposits increased by $172 million, or 7.4% annualized, from December 31, 2024, driven by both existing client balances and new client acquisitions[246] - Brokered deposits totaled $834.4 million as of September 30, 2025, an increase of $8.7 million from $825.8 million at December 31, 2024[247] Interest Income and Expense - Total interest income for Q3 2025 was $74.2 million, a $10.8 million or 17.1% increase from $63.3 million in Q3 2024[188] - Interest income on loans for Q3 2025 was $60.3 million, up $8.2 million or 15.7% from $52.1 million in Q3 2024[190] - Interest expense on interest bearing liabilities was $39.5 million for Q3 2025, an increase of $2.1 million from $37.4 million in Q3 2024[191] Operational Efficiency - The efficiency ratio improved to 54.7% in Q3 2025 from 58.0% in Q3 2024, reflecting better cost management[169] - Noninterest expense for Q3 2025 was $20.0 million, an increase of $4.2 million, or 26.6%, from $15.8 million in Q3 2024[211] Tax and Regulatory Compliance - Income tax expense for Q3 2025 was $3.5 million, compared to $2.7 million in Q3 2024, with an effective tax rate of 23.2%[219] - Total risk-based capital for the Company was $652.4 million with a ratio of 14.12% as of September 30, 2025, exceeding the minimum required ratio of 8.00%[262] Interest Rate Risk Management - The Company’s net interest income simulation model evaluates potential changes in net interest income over the next 12 months based on interest rate shifts[283] - Interest rate risk management is overseen by the ALM Committee, which sets limits and targets for various metrics related to net interest income[280] - As of September 30, 2025, a 400 basis point increase in interest rates would lead to a 10.03% decrease in net interest income, amounting to $138,605[286]

Financial Data and Key Metrics Changes - In Q3 2025, the company experienced a strong core deposit growth of 11.5% annualized, contributing to a steady net interest income growth [5][6] - Net interest income increased by $1.6 million during the quarter, with net interest margin expanding by 1 basis point to 2.63% [7][12] - Tangible book value per share increased by 20% annualized in Q3 and is up 14% annualized year to date [7] Business Line Data and Key Metrics Changes - Loan growth was strong at 6.6% annualized in Q3, with growth across multiple asset classes, including affordable housing [5][10] - Core deposits are now up 7.4% annualized year to date, indicating a solid deposit pipeline [19] - Loan origination activity decreased slightly in Q3 but is expected to pick up in Q4 due to a strong pipeline [22] Market Data and Key Metrics Changes - The company noted favorable trends in the Twin Cities market, which supports continued strong asset quality [11][30] - The cost of total deposits stabilized at 3.19%, with expectations for a decline in deposit costs in Q4 [16] Company Strategy and Development Direction - The company aims to grow to a $10 billion bank by 2030, with a focus on taking advantage of M&A disruptions in the Twin Cities [10][30] - A new retail and small business online banking platform was launched, enhancing client financial management [8] - The company plans to close one of the two branches acquired from First Minnetonka City Bank to improve efficiency [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about net interest margin expansion in the coming quarters, with a target of reaching a 3% margin by early 2027 [10][28] - The overall credit profile remains strong, with low non-performing assets and net charge-offs [25][28] Other Important Information - The company has successfully completed significant initiatives, including the systems conversion of the First Minnetonka City Bank acquisition [8] - Management transitions were announced, with key leadership changes planned for 2026 [9][10] Q&A Session Summary Question: Margin path towards 3% - Management expects a steady improvement of 2 to 3 basis points per month towards the 3% margin target, assuming two rate cuts in October and December [36][38] Question: Impact of rate cuts on borrowers - Management has not quantified the tangible benefits of rate cuts but is proactively addressing loans with repricing risk [39] Question: Merger costs and future expenses - Management clarified that merger costs were highlighted separately and expects expenses to normalize post-conversion [40][42] Question: Affordable housing growth comfort level - The company has a strong history in affordable housing and is comfortable growing this segment, focusing on top-tier borrowers [51][53] Question: Loan growth outlook and hiring impact - Management is optimistic about loan growth and is strategically hiring to align loan growth with deposit growth [60][62]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported a strong core deposit growth of 11.5% annualized, contributing to a steady net interest income growth [6][7] - Net interest income increased by $1.6 million during the quarter, with a net interest margin expansion of one basis point to 2.63% [7][14] - Tangible book value per share increased by 20% annualized in Q3 and is up 14% annualized year to date [8] Business Line Data and Key Metrics Changes - Loan growth was strong at 6.6% annualized in Q3, with significant contributions from various asset classes, including affordable housing [7][23] - Core deposits are now up 7.4% annualized year to date, indicating a solid deposit pipeline [21] - The company experienced a decline in fee income in Q3 due to a lack of swap fee income, although it expects a rebound in Q4 [18] Market Data and Key Metrics Changes - The company noted favorable trends in the Twin Cities market, which supports continued strong asset quality [12][27] - Nonperforming assets remained low at 0.19% of total assets, and net charge-offs were just 0.03% of average loans [29] Company Strategy and Development Direction - The company aims to grow to a $10 billion bank by February 2030, with a focus on loan and deposit growth driven by M&A opportunities in the Twin Cities [12][36] - The successful launch of a new online banking platform and the completion of a systems conversion from an acquisition are seen as strategic initiatives to enhance customer experience and operational efficiency [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan and deposit growth, anticipating continued opportunities from M&A disruptions in the Twin Cities [12][36] - The company expects net interest margin expansion to reach 3% by early 2027, driven by loan yield repricing and declining deposit costs [33][34] Other Important Information - The company has elevated several internal leaders to key positions, ensuring continuity in its credit culture and strategic direction [11] - The overall credit profile remains strong, with a conservative reserve level of 1.34% compared to peers [29][32] Q&A Session Summary Question: Margin path towards 3% - Management indicated that margin improvement is expected to be steady, with a potential increase of two to three basis points per month, assuming rate cuts occur as anticipated [41][42] Question: Impact of rate cuts on borrowers - Management noted that while they do not have quantified data, they are proactively addressing loans with repricing risk, which should improve with further rate cuts [44] Question: Merger costs and expense normalization - Management clarified that merger-related costs were highlighted separately and that they expect expenses to normalize following the systems conversion [46][47] Question: Loan growth outlook and hiring impact - Management expressed confidence in loan growth, emphasizing a strategy to align loan growth with core deposit growth for profitability [65][66] Question: Securities yield trajectory - Management indicated that securities yields increased due to opportunities in the market and that they remain active in redeploying funds to support loan growth [72] Question: Specific reserves on loans - Management confirmed that specific reserves for certain loans remain unchanged, with no planned charge-offs at this time [75]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported a strong core deposit growth of 11.5% annualized, contributing to a $1.6 million increase in net interest income [5][6] - The net interest margin expanded by one basis point to 2.63%, with expectations for more significant expansion in the coming quarters [6][12] - Tangible book value per share increased by 20% annualized in Q3 and is up 14% annualized year to date [6] Business Line Data and Key Metrics Changes - Loan growth was strong at 6.6% annualized in Q3, with growth across multiple asset classes, including affordable housing [5][20] - Core deposits are now up 7.4% annualized year to date, indicating a healthy deposit pipeline [18] - Fee income saw a decline in Q3 due to a lack of swap fee income, but a rebound is expected in Q4 [16][17] Market Data and Key Metrics Changes - The company continues to see favorable trends in the Twin Cities market, with expectations for continued strong asset quality [11][30] - The overall credit profile remains strong, with non-performing assets at just 0.19% of total assets, well below peer levels [25][27] Company Strategy and Development Direction - The company aims to grow to a $10 billion bank by 2030, with a focus on taking advantage of M&A disruptions in the Twin Cities [10][30] - A new retail and small business online banking platform was launched, enhancing client financial management [8][30] - The company plans to close one of the two branches acquired from First Minnetonka City Bank to improve efficiency [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan and deposit growth, with expectations for mid to high single-digit loan growth in the near term [10][28] - The company is well-positioned for net interest margin expansion, anticipating a path to a 3% margin by early 2027 [28][29] - Management highlighted the importance of maintaining a strong credit culture and proactive risk management [36][48] Other Important Information - The company has undergone leadership transitions, with key executives retiring in 2026, ensuring continuity in the bank's credit culture [9][10] - The systems conversion related to the acquisition of First Minnetonka City Bank was successfully completed, allowing for a return to normalized expense growth [11][29] Q&A Session Summary Question: Margin path towards 3% - Management expects a steady improvement of two to three basis points a month, assuming two rate cuts in October and December [34] Question: Impact of rate cuts on borrowers - Management is proactively addressing loans with repricing risk and feels confident about the credit risk management in place [36] Question: Merger costs allocation - The increase in expenses was primarily due to salaries and marketing efforts related to growth strategies, with merger costs highlighted separately [37][39] Question: Loan growth outlook and hiring impact - Management is optimistic about loan growth and is strategically hiring to align loan growth with deposit growth [52][56] Question: Affordable housing growth comfort level - The company has a strong history in affordable housing and is comfortable expanding this segment, focusing on top-tier borrowers [45][48] Question: Specific reserves on loans - The specific reserve for an office loan remains unchanged, and there are no specific reserves for a multifamily loan that was moved to substandard [60]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Disclaimer Forward-Looking Statements This presentation 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 ...

Core Insights - Bridgewater reported quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.41 per share, but showing an increase from $0.27 per share a year ago, resulting in an earnings surprise of -4.88% [1] - The company posted revenues of $36.15 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 2.56%, compared to $27.12 million in the same quarter last year [2] - Bridgewater shares have increased approximately 28.7% year-to-date, outperforming the S&P 500's gain of 14.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.44 on revenues of $38.1 million, and for the current fiscal year, it is $1.53 on revenues of $142.8 million [7] - The estimate revisions trend for Bridgewater was favorable prior to the earnings release, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Banks - Northeast industry, to which Bridgewater belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8]

Financial Performance - Net income for Q3 2025 was $11.6 million, or $0.38 per diluted common share, compared to $11.5 million in Q2 2025 and $8.7 million in Q3 2024[3] - Net income for Q3 2025 was $11,601,000, slightly up from $11,520,000 in Q2 2025 and significantly higher than $9,633,000 in Q1 2025[36] - Net Income for the nine months ended September 30, 2025, was $32,754,000, an increase from $24,621,000 in the same period of 2024[47] - Net Income Available to Common Shareholders for Q3 2025 was $10,588,000, an increase from $7,190,000 in Q3 2024, representing a year-over-year growth of 47.5%[49] - Total Adjusted Net Income for the nine months ended September 30, 2025, was $33,365,000, up from $24,498,000 in the same period of 2024, marking a 36.1% increase[49] Income and Expenses - Net interest income increased by $1.6 million, or 5.1%, from Q2 2025, totaling $34.1 million for Q3 2025[8] - Noninterest income decreased to $2.1 million in Q3 2025, down $1.6 million from Q2 2025, but up $539,000 from Q3 2024[16] - Total noninterest expense increased to $19,956,000 in Q3 2025, up from $18,941,000 in Q2 2025, reflecting a rise of 5.4%[40] - The total interest expense for Q3 2025 was $39,542,000, an increase from $36,746,000 in Q2 2025[40] - Provision for credit losses on loans was $900,000 in Q3 2025, down from $2.0 million in Q2 2025 and up from $0 in Q3 2024[14] Asset and Deposit Growth - Total assets increased to $5,359,994,000 in Q3 2025 from $5,296,673,000 in Q2 2025[36] - Total deposits rose by $56.0 million, or 5.2% annualized, from Q2 2025, with core deposits increasing by $92.1 million, or 11.5% annualized[2] - Total deposits were $4.29 billion in Q3 2025, an increase of $56.0 million, or 5.2% annualized, from Q2 2025, and up $545.3 million, or 14.6%, from Q3 2024[21] - Total interest earning assets increased to $5,223,139 thousand for the three months ended September 30, 2025, compared to $5,019,058 thousand for the previous quarter, reflecting a growth of 4.05%[41] Loan Performance - Gross loans increased by $68.8 million, or 6.6% annualized, from Q2 2025, reaching a total of $4.21 billion[2] - Total gross loans reached $4.21 billion in Q3 2025, an increase of $68.8 million, or 6.6% annualized, from Q2 2025, and up $529.0 million, or 14.4%, from Q3 2024[19] - The loan to deposit ratio was 98.2% in Q3 2025, compared to 97.9% in Q2 2025[36] - Nonperforming Loans amounted to $9,991,000, representing 0.24% of Total Loans as of September 30, 2025, consistent with the previous quarter[45] Efficiency and Ratios - The efficiency ratio was 54.7%, up from 52.6% in Q2 2025, indicating increased operational costs relative to income[2] - The efficiency ratio for Q3 2025 was 54.7%, an increase from 52.6% in Q2 2025[36] - Adjusted Return on Average Assets for Q3 2025 was 0.88%, consistent with Q2 2025, and up from 0.71% in Q3 2024[49] - Adjusted Return on Average Shareholders' Equity for Q3 2025 was 9.77%, compared to 7.49% in Q3 2024, showing a significant improvement[49] Capital and Book Value - Tangible book value per share increased by 20.0% annualized to $14.93 at September 30, 2025[2] - Tangible Book Value Per Common Share increased to $14.93 in Q3 2025 from $13.96 in Q3 2024, reflecting a growth of 6.9%[48] - Total shareholders' equity increased to $497.5 million in Q3 2025, up $21.2 million, or 17.6% annualized, from Q2 2025[25] - Common equity tier 1 risk-based capital ratio was 9.08% in Q3 2025, slightly up from 9.03% in Q2 2025[37] Operational Developments - The company successfully completed the systems conversion of the First Minnetonka City Bank acquisition[2] - A new retail and small business online banking platform was launched during the quarter, supporting future growth initiatives[5] - The Company had 325 full-time equivalent employees at September 30, 2025, an increase from 308 at June 30, 2025, driven by the acquisition of FMCB[18]

Core Insights - The market anticipates Bridgewater (BWB) to report a year-over-year earnings increase driven by higher revenues for the quarter ended September 2025 [1] - The upcoming earnings report on October 21 could significantly impact the stock price depending on whether the results meet or exceed expectations [2] Earnings Expectations - The Zacks Consensus Estimate predicts quarterly earnings of $0.41 per share, reflecting a year-over-year increase of +51.9% [3] - Expected revenues are $37.1 million, which is a 36.8% increase from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised 7.32% higher in the last 30 days, indicating a positive reassessment by analysts [4] - The Most Accurate Estimate for Bridgewater is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +4.88% [12] Earnings Surprise Prediction - A positive Earnings ESP reading suggests a likely earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy) [10] - Bridgewater's current Zacks Rank is 1, indicating a strong likelihood of surpassing the consensus EPS estimate [12] Historical Performance - In the last reported quarter, Bridgewater exceeded the expected earnings of $0.35 per share by delivering $0.37, resulting in a surprise of +5.71% [13] - Over the past four quarters, the company has consistently beaten consensus EPS estimates [14] Industry Context - In the Zacks Banks - Northeast industry, Webster Financial (WBS) is expected to report earnings of $1.52 per share, reflecting a year-over-year change of +13.4% [18] - Webster Financial's revenue is projected to be $724.91 million, up 11.9% from the previous year [19]

Core Insights - Bridgewater (BWB) has a strong history of beating earnings estimates and is well-positioned for future earnings growth [1][5] - The company reported earnings of $0.37 per share for the most recent quarter, exceeding the expected $0.35, resulting in a surprise of 5.71% [2] - The average surprise for the last two quarters was 8.03%, indicating consistent performance above expectations [1][2] Earnings Performance - In the previous quarter, Bridgewater reported earnings of $0.32 per share against an expectation of $0.29, achieving a surprise of 10.34% [2] - The company's Earnings ESP (Expected Surprise Prediction) is currently +4.88%, suggesting analysts are optimistic about future earnings [8] Analyst Sentiment - The positive Earnings ESP combined with a Zacks Rank of 1 (Strong Buy) indicates a high likelihood of another earnings beat in the upcoming report [8] - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6] Upcoming Earnings - Bridgewater's next earnings report is expected to be released on October 21, 2025 [8]