Core Viewpoint - Bridgewater (BWB) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are closely correlated with short-term stock price movements [3][5]. - Institutional investors often rely on earnings estimates to determine a company's fair value, leading to buying or selling actions that affect stock prices [3]. Bridgewater's Earnings Outlook - The upgrade reflects an improvement in Bridgewater's underlying business, with rising earnings estimates expected to drive the stock price higher [4]. - For the fiscal year ending December 2025, Bridgewater is projected to earn $1.43 per share, representing a 36.2% increase from the previous year [7]. - Over the past three months, the Zacks Consensus Estimate for Bridgewater has risen by 11.8% [7]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions [8][9].

Core Viewpoint - The recent 90-day pause in the U.S.-China trade conflict has created a temporary positive sentiment in the market, but without a comprehensive trade agreement and clearer economic policies, market volatility is expected to persist [1] Group 1: Investment Strategy - Creating a curated portfolio of low-beta stocks is recommended as a strategy to navigate market volatility [1] - Stocks with a beta between 0 and 0.6 are considered less volatile than the market, making them suitable for this strategy [5][6] Group 2: Stock Recommendations - Bridgewater Bancshares, Inc. (BWB) is experiencing growth in lending and deposits, particularly in affordable housing, while managing risks effectively and buying back shares [7] - Stride Inc. (LRN) is positioned for long-term success through innovative educational solutions and a focus on school choice [8] - 908 Devices Inc. (MASS) is concentrating on handheld devices for drug threats and border security, with accelerating sales and plans for profitability by 2026 [10] - Philip Morris International Inc. (PM) is transitioning to smoke-free products, focusing on heated tobacco and nicotine pouches, while also rewarding shareholders [11]

Company Overview - Bridgewater (BWB) currently holds a Momentum Style Score of B, indicating a positive outlook based on its recent performance metrics [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Price Performance - Over the past week, BWB shares have increased by 9.27%, outperforming the Zacks Banks - Northeast industry, which rose by 3.01% [5] - In a longer time frame, BWB's monthly price change is 27.99%, significantly higher than the industry's 9.56% [5] - For the last three months, BWB shares have risen by 5.22%, and over the past year, they have increased by 32.3%, while the S&P 500 has moved -5.55% and 13.72%, respectively [6] Trading Volume - BWB's average 20-day trading volume is 145,795 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, two earnings estimates for BWB have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $1.28 to $1.43 [9] - For the next fiscal year, one estimate has moved upwards with no downward revisions during the same period [9] Conclusion - Considering the positive price trends, trading volume, and earnings outlook, BWB is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]

Acquisition and Merger - The Company completed the acquisition of FMCB on December 13, 2024, adding approximately $245.0 million in assets and $225.7 million in deposits[134]. - The acquisition also included $117.1 million in loans and leases and two branch locations in Minnetonka, Minnesota[134]. - During Q1 2025, the Company incurred merger-related expenses of $565,000 related to the FMCB acquisition[134]. Financial Performance - Net income for Q1 2025 was $9.6 million, an increase from $7.8 million in Q1 2024, representing a 23.1% year-over-year growth[139]. - Diluted earnings per share for Q1 2025 were $0.31, compared to $0.24 in Q1 2024, reflecting a 29.2% increase[139]. - Adjusted net income for Q1 2025 was $10.1 million, compared to $7.8 million in Q1 2024, reflecting a 29.5% increase[139]. - Noninterest income for Q1 2025 was $2.1 million, compared to $1.5 million in Q1 2024, showing a 38.5% increase[136]. - The efficiency ratio improved to 55.5% in Q1 2025 from 56.8% in Q4 2024, indicating better cost management[136]. Income and Expenses - Net interest income for Q1 2025 was $30.2 million, up from $25.6 million in Q1 2024, indicating a 17.9% increase[136]. - Total interest income for Q1 2025 was $66.0 million, an increase of $6.9 million or 11.7% compared to $59.0 million in Q1 2024[152]. - Noninterest expense increased to $18.1 million in Q1 2025, up $2.9 million or 19.1% from $15.2 million in Q1 2024, primarily due to higher salaries and merger-related expenses[165]. Assets and Loans - Total assets as of March 31, 2025, were $5.1 billion, up from $4.7 billion as of March 31, 2024, marking a 9.5% increase[136]. - Total loans, gross, reached $4.0 billion as of March 31, 2025, compared to $3.7 billion a year earlier, representing an 8.9% increase[136]. - The loan to deposit ratio was 96.6% as of March 31, 2025, compared to 94.7% as of December 31, 2024[136]. - Nonperforming loans increased to $10.3 million, or 0.26% of total loans, as of March 31, 2025, compared to $8.4 million, or 0.23%, a year earlier[137]. Credit Losses and Allowances - The provision for credit losses on loans and leases was $1.5 million for Q1 2025, compared to $850,000 in Q1 2024, reflecting increased growth in the loan portfolio[159]. - The allowance for credit losses on loans and leases to total loans was 1.34% at March 31, 2025, down from 1.36% at March 31, 2024[159]. - The allowance for credit losses was $53,766 thousand as of March 31, 2025, compared to $52,277 thousand at the end of 2024, indicating a slight increase in provisions[186]. Deposits and Funding - Total deposits reached $4.16 billion as of March 31, 2025, marking an increase of $75.7 million, or 1.9%, from $4.09 billion at December 31, 2024, and a 9.3% increase from $3.81 billion at March 31, 2024[200]. - Core deposits increased by $63.7 million, or 8.3% annualized, from December 31, 2024, driven by both existing client balances and new client acquisitions[200]. - Brokered deposits totaled $831.5 million as of March 31, 2025, a slight increase of $5.7 million from $825.8 million at December 31, 2024, serving as a supplemental funding source for loan portfolio growth[202]. Liquidity and Capital - Total shareholders' equity increased by $11.0 million, or 2.4%, to $469.0 million as of March 31, 2025, compared to $457.9 million at December 31, 2024[209]. - The Company maintained a total risk-based capital ratio of 13.62% as of March 31, 2025, exceeding the minimum required ratio of 8.00%[214]. - Total on- and off-balance sheet liquidity was $2.36 billion as of March 31, 2025, compared to $2.30 billion at December 31, 2024[220]. Interest Rate Risk Management - The Company faces risks related to interest rate fluctuations, credit risk, and competition from nonbank financial service providers[130]. - The Company’s risk management infrastructure includes limits and management targets for various metrics related to interest rate risk[230]. - Interest rate risk is managed by adjusting interest rates and terms associated with investment securities and customer deposits[231].

Core Viewpoint - Bridgewater (BWB) is positioned as a strong investment opportunity due to its improving earnings outlook and positive analyst sentiment [1][2]. Earnings Estimate Revisions - Analysts have shown growing optimism regarding Bridgewater's earnings prospects, reflected in upward revisions of earnings estimates [2][3]. - For the current quarter, the earnings estimate is $0.35 per share, representing a 34.62% increase from the previous year [6]. - Over the past 30 days, the Zacks Consensus Estimate for Bridgewater has risen by 16.67%, with one estimate moving higher and no negative revisions [6]. - For the full year, the expected earnings are $1.43 per share, indicating a 36.19% increase from the prior year [7]. - The consensus estimate for the current year has increased by 11.77% due to two upward revisions and no negative changes [8]. Zacks Rank and Performance - Bridgewater has achieved a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts on the positive earnings revisions [9]. - Historically, Zacks 1 Ranked stocks have generated an average annual return of +25% since 2008, suggesting a strong potential for outperformance [3][9]. - Stocks with Zacks Rank 1 and 2 significantly outperform the S&P 500, reinforcing the attractiveness of Bridgewater as an investment [9]. Recent Stock Performance - Bridgewater shares have increased by 9.4% over the past four weeks, indicating investor confidence in the company's earnings growth prospects [10].

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of a trend in short-term investing, highlighting that successful entry timing is crucial for profitability [1][2]. Group 1: Trend Analysis - The trend can reverse before exiting a trade, leading to potential short-term capital losses for investors [2]. - A solid price increase over a 12-week period indicates investor confidence, with Bridgewater (BWB) showing a gain of 10.2% during this timeframe [4]. - A price increase of 9.4% over the past four weeks suggests that the upward trend for BWB is still intact [5]. Group 2: Fundamental Strength - BWB is currently ranked 1 (Strong Buy) by Zacks, placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The Zacks Rank system has a strong historical performance, with 1 ranked stocks averaging a +25% annual return since 1988 [7]. - The Average Broker Recommendation for BWB is also 1 (Strong Buy), indicating high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Opportunities - In addition to BWB, there are several other stocks that meet the criteria of the "Recent Price Strength" screen, suggesting potential investment opportunities [8]. - The article encourages investors to explore over 45 Zacks Premium Screens tailored to different investing styles to identify winning stock picks [8].

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $0.32, excluding merger-related expenses, indicating strong performance in Q1 2025 [10] - Net interest margin expanded by 19 basis points to 2.51%, driven by lower deposit pricing and higher loan yields [12][20] - First-quarter loan balances increased by 16% on an annualized basis, reflecting strong loan growth [11][31] Business Line Data and Key Metrics Changes - Core deposit growth was 8% annualized in Q1 2025, contributing to the company's ability to pursue loan growth [11][29] - Non-interest income remained elevated at $2.1 million, including $325,000 from investment advisory fees related to the recent acquisition [26] - The multifamily loan portfolio, particularly in affordable housing, grew by 13% over the past year, now totaling nearly $600 million [37] Market Data and Key Metrics Changes - The loan pipeline is at its highest level since 2022, indicating increased demand in the market [33] - The company noted favorable market trends in the Twin Cities, with improved absorption levels and rent growth in the multifamily sector [39] Company Strategy and Development Direction - The company aims to gain market share amid ongoing market disruptions in the Twin Cities, focusing on affordable housing and commercial & industrial (C&I) spaces [56] - Two significant technology initiatives are planned for 2025, including an upgraded online banking platform and systems conversion from the recent acquisition [56] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth, projecting mid to high single-digit growth for the full year 2025, despite potential economic uncertainties [50] - The company is actively monitoring the impact of tariffs and market volatility on client behavior and loan demand [17][33] Other Important Information - The company repurchased approximately $600,000 of common stock during the quarter, with $14.7 million remaining under the current share repurchase authorization [48] - Non-performing assets increased to 0.2% of loans, primarily due to one office loan moved to non-accrual status, but overall asset quality remains strong [14][44] Q&A Session Summary Question: Changes in competition in the CRE market - Management noted increased activity from previously sidelined players, tightening spreads slightly, but remains confident in their competitive position [60][62] Question: Details on margin and deposit costs - The March average margin was reported at 2.53%, with deposit costs at 3.18% for the quarter, indicating ongoing efforts to lower costs while maintaining loan yields [64][66] Question: Loan growth distribution throughout the quarter - Loan growth was relatively steady across the quarter, with a slight bias towards the back half [68] Question: Timeline for the workout of a non-accrual loan - The workout process for the non-accrual loan is expected to be longer-term, dependent on economic conditions, with the borrower engaged in a workout plan [71] Question: Outlook on M&A activity - The company is in discussions with owners of smaller franchises in the Twin Cities but has no imminent deals [91] Question: Share repurchase decision-making process - The company evaluates share repurchases based on valuations, growth prospects, and capital needs, maintaining flexibility in decision-making [97]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $0.32, excluding merger-related expenses, indicating strong performance in the first quarter [6] - Net interest margin expanded by 19 basis points to 2.51%, driven by lower deposit pricing and higher loan yields [13][8] - First quarter loan balances increased by 16% on an annualized basis, reflecting strong loan demand [7][6] Business Line Data and Key Metrics Changes - Core deposit growth was 8% annualized in the first quarter, contributing to a more offensive approach on loan growth [7][19] - Non-interest income remained elevated at $2.1 million, including $325,000 from investment advisory fees related to the recent acquisition [17] - The multifamily loan portfolio, particularly in affordable housing, grew to nearly $600 million, with a 13% increase over the past year [25][24] Market Data and Key Metrics Changes - The company noted favorable market trends in The Twin Cities, with improved absorption levels in the multifamily sector [27] - The loan pipeline is at its highest level since 2022, indicating strong future loan growth potential [21][22] - Economic uncertainty and market volatility regarding tariffs were highlighted as potential headwinds for client projects [22][10] Company Strategy and Development Direction - The company aims to gain market share amidst ongoing market disruptions in the Twin Cities, focusing on affordable housing and commercial real estate [38][11] - Technology initiatives include upgrading online banking platforms and systems conversion from recent acquisitions [38] - The company is actively monitoring competition in the commercial real estate sector, noting increased activity from previously sidelined players [42][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid to high single-digit loan growth for 2025, despite potential economic uncertainties [35][34] - The company remains focused on net interest income growth, with expectations for continued margin expansion [35][36] - Management acknowledged the impact of recent market volatility but emphasized the importance of maintaining strong client relationships [10][11] Other Important Information - The company repurchased approximately $600,000 of common stock during the quarter, with $14.7 million remaining under the current share repurchase authorization [33] - Non-performing assets increased to 0.2% of loans, primarily due to one central business district office loan being moved to non-accrual [30][29] Q&A Session Summary Question: Changes in competition in the CRE sector - Management noted increased activity from smaller players in the market, tightening spreads slightly [42] Question: Details on margin and deposit costs - The March average margin was reported at 2.53%, with ongoing efforts to lower deposit costs [46][45] Question: Loan growth distribution throughout the quarter - Loan growth was relatively steady across the quarter, with a slight bias towards the back half [49] Question: Timeline for the workout of a non-accrual loan - The workout process for the non-accrual loan is expected to be longer-term, with the borrower engaged in a workout plan [51] Question: M&A activity and potential future deals - Management is in discussions with owners of smaller franchises in the Twin Cities but indicated no imminent deals [65]

Group 1 - Bridgewater reported quarterly earnings of $0.32 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and up from $0.24 per share a year ago, representing an earnings surprise of 10.34% [1] - The company achieved revenues of $32.29 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.86%, compared to $26.18 million in the same quarter last year [2] - Bridgewater has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Group 2 - The stock has declined approximately 4.7% since the beginning of the year, while the S&P 500 has decreased by 10.1% [3] - The future performance of Bridgewater's stock will largely depend on management's commentary during the earnings call and the outlook for earnings estimates [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.30 on revenues of $31.9 million, and for the current fiscal year, it is $1.28 on revenues of $131.4 million [7] Group 3 - The Banks - Northeast industry, to which Bridgewater belongs, is currently ranked in the top 23% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net income for Q1 2025 was $9.6 million, or $0.31 per diluted common share, compared to $8.2 million in Q4 2024 and $7.8 million in Q1 2024[3] - Net Income for Q1 2025 reached $9,633,000, up 17.5% compared to $8,204,000 in Q4 2024[34] - Earnings per share (EPS) for the quarter was $0.31, compared to $0.26 in the previous quarter, reflecting a 19.2% increase[39] - Net income available to common shareholders was $9,050,000 for Q1 2025, up from $7,571,000 in Q4 2024, representing a growth of 19.5%[47] Revenue and Income Sources - Pre-provision net revenue increased by $1.5 million, or 11.5%, from Q4 2024, with net interest income rising by $3.2 million, or 12.0%[2] - Interest income for Q1 2025 was $65.7 million, an increase of $2.4 million from Q4 2024, attributed to higher loan interest and fee income[9] - Noninterest income decreased to $2.1 million in Q1 2025, down from $2.5 million in Q4 2024, but up from $1.6 million in Q1 2024[16] - Net operating revenue reached $32,286,000 in Q1 2025, representing a 9.1% increase compared to $29,500,000 in Q4 2024[45] Asset and Loan Growth - Gross loans increased by $151.6 million, or 15.9% annualized, from Q4 2024, while total deposits rose by $75.7 million, or 7.5% annualized[2] - Total gross loans at March 31, 2025, were $4.02 billion, an increase of $151.6 million, or 15.9% annualized, from $3.87 billion at December 31, 2024[19] - Total assets reached $5,071,446, an increase from $4,788,036 in the previous quarter, marking a growth of 5.9%[40] Efficiency and Cost Management - Efficiency ratio improved to 55.5%, down from 56.8% in Q4 2024, indicating better operational efficiency[2] - The efficiency ratio for the first quarter of 2025 was 55.5%, compared to 56.8% for the fourth quarter of 2024 and 58.2% for the first quarter of 2024[18] - Noninterest expense increased to $18.1 million in Q1 2025, up by $1.3 million from Q4 2024, indicating rising operational costs[17] Asset Quality and Credit Losses - Nonperforming assets to total assets ratio was 0.20% at March 31, 2025, compared to 0.01% at December 31, 2024, reflecting a slight increase in asset quality concerns[2] - The allowance for credit losses on loans to total loans was 1.34% at March 31, 2025, compared to 1.35% at December 31, 2024[18] - Nonperforming loans increased to $10,290, compared to $301 in the previous quarter, showing a significant rise[43] Capital and Equity - Total shareholders' equity at March 31, 2025, was $469.0 million, an increase of $11.0 million, or 2.4%, from $457.9 million at December 31, 2024[24] - Tangible book value per share increased by 12.2% annualized to $13.89 at March 31, 2025[2] - The Common Equity Tier 1 Risk-Based Capital Ratio was 9.03% at March 31, 2025, compared to 9.08% at December 31, 2024[30] Interest Margin and Yield - Net interest margin for Q1 2025 was 2.51%, a 19 basis point increase from Q4 2024, driven by lower deposit costs and higher loan yields[8] - Core net interest margin improved to 2.37% in Q1 2025, compared to 2.24% in Q4 2024[45] - Core loan yield for Q1 2025 was 5.50%, slightly up from 5.47% in Q4 2024[45]