Financial Data and Key Metrics Changes - The company reported earnings of $0.27 per share for Q3 2024, marking a solid quarter with net interest income growth for the second consecutive quarter and stable net interest margin at 2.24% [6][7][12] - Tangible book value increased by 3% in Q3, marking the 31st consecutive quarter of growth [10] - Capital ratios improved, with CET1 increasing from 9.41% to 9.79% [28] Business Line Data and Key Metrics Changes - Core deposit growth was strong, with an increase of $93 million or 14.4% annualized, contributing to an improved deposit mix [17] - Loan balances decreased by $115 million due to elevated loan payoffs, with total payoffs up 42% year-to-date compared to 2023 [18][21] - The loan-to-deposit ratio improved to 98.3% from 99.8% in the previous quarter [18] Market Data and Key Metrics Changes - The multifamily exposure of $1.4 billion showed only $62,000 in net charge-offs since inception, indicating strong asset quality [23][26] - Vacancy rates in the Twin Cities for multifamily properties have declined, reflecting robust demand and a slowdown in construction [23] Company Strategy and Development Direction - The acquisition of First Minnetonka City Bank is expected to enhance liquidity and reduce commercial real estate concentration while adding a new income stream [8][9] - The company aims to optimize its balance sheet for long-term growth, focusing on core deposit growth and strategic M&A opportunities [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about margin expansion beginning in Q4 2024, driven by a liability-sensitive balance sheet and the recent Fed rate cut [7][29] - The company remains focused on generating profitable growth while adhering to a conservative credit culture, despite expected elevated loan payoffs [21] Other Important Information - The company has made recent enhancements to its leadership structure to increase agility and focus [11] - The integration of First Minnetonka City Bank is on track, with all required regulatory approvals received [9] Q&A Session Summary Question: Details on loan payoffs - Management indicated that payoffs were a mix of credit-driven and customer-driven decisions, with expectations for continued elevated payoffs in Q4 [32][34] Question: Margin and deposit runoff timing - The brokered deposit runoff occurred from mid-August to early September, with costs above 5%, benefiting the margin [35][36] Question: Expense growth relative to asset growth - Management expects expenses to track in line with asset growth, maintaining a mid-single-digit growth rate [37][38] Question: Loan growth outlook for next year - The company anticipates mid-single-digit loan growth in 2025, supported by a strong pipeline [45] Question: Margin outlook and Fed rate cuts - The modest margin expansion outlook is influenced by the pace of Fed rate cuts and competitive deposit pricing in the market [50][51] Question: Regulatory feedback on commercial real estate concentration - Management reported positive feedback from regulators, indicating effective risk management practices [54] Question: Share repurchase plans post-acquisition - The company will evaluate share repurchase opportunities based on capital levels and growth opportunities, aiming to maintain CET1 above 9% [55]

EARNINGS PRESENTATION THIRD QUARTER 2024 Bridgewater Bancshares Inc. 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 ...

Core Viewpoint - The article emphasizes the importance of identifying and sustaining stock price trends for successful short-term investing, highlighting the utility of a "Recent Price Strength" screen to find stocks with strong fundamentals and upward momentum [1]. Group 1: Stock Performance - Bridgewater (BWB) has shown a solid price increase of 10% over the past 12 weeks, indicating investor confidence in its potential upside [2]. - The stock has also increased by 8.1% over the last four weeks, suggesting that the upward trend is still intact [2]. - BWB is currently trading at 93.7% of its 52-week high-low range, indicating a potential breakout [2]. Group 2: Fundamental Strength - BWB holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [3]. - The Zacks Rank system has a strong historical performance, with Rank 1 stocks generating an average annual return of +25% since 1988 [3]. - The Average Broker Recommendation for BWB is also 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [3]. Group 3: Investment Strategy - The article suggests that BWB's price trend is unlikely to reverse soon, and encourages investors to explore other stocks that meet the "Recent Price Strength" criteria [4]. - It mentions the availability of over 45 Zacks Premium Screens tailored to different investing styles, which can help identify potential winning stocks [4]. - The Zacks Research Wizard tool is recommended for backtesting stock-picking strategies to ensure past profitability [4].

Company Performance - Bridgewater reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, but down from $0.30 per share a year ago, representing an earnings surprise of 8% [1] - The company posted revenues of $27.12 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.08%, and slightly down from $27.15 million year-over-year [1] - Over the last four quarters, Bridgewater has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [1] Stock Outlook - The stock has added approximately 11.4% since the beginning of the year, compared to the S&P 500's gain of 22.7% [2] - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $28.6 million, and for the current fiscal year, it is $1.01 on revenues of $109 million [4] - The estimate revisions trend for Bridgewater is currently favorable, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [4] Industry Context - The Banks - Northeast industry, to which Bridgewater belongs, is currently in the top 20% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [5] - Empirical research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [5] - BM Technologies, Inc. (BMTX), another company in the same industry, is expected to report a quarterly loss of $0.18 per share, reflecting a year-over-year change of +47.1%, with revenues projected at $14.06 million, down 4.6% from the previous year [5]

Financial Performance - Net income for Q3 2024 was $8.7 million, an increase from $8.1 million in Q2 2024 and a decrease from $9.6 million in Q3 2023[4] - Diluted earnings per share for Q3 2024 were $0.27, compared to $0.26 in Q2 2024 and $0.30 in Q3 2023[4] - Net income available to common shareholders increased to $8,675,000, up from $7,662,000, reflecting a growth of 13.2%[28] - Net income for September 30, 2024, was $8,675,000, representing a 6.9% increase from $8,115,000 in June 30, 2024[38] Asset and Equity Growth - Total assets reached $4.7 billion as of September 30, 2024, with seven branches operating[23] - Total shareholders' equity increased to $452.2 million as of September 30, 2024, up $13.0 million or 3.0% from June 30, 2024, and up $36.2 million or 8.7% from September 30, 2023[20] - Total assets increased to $4,647,925 thousand as of September 30, 2024, compared to $4,464,976 thousand as of the same date in 2023[34] - Total shareholders' equity rose to $452,200 million, compared to $415,960 million, reflecting an increase of approximately 8.67%[31] Deposit and Loan Activity - Core deposits rose by $93.6 million, or 14.4% annualized, while total deposits decreased by $60.3 million from Q2 2024[2] - Total deposits were $3.75 billion in Q3 2024, a decrease of $60.3 million or 1.6% from Q2 2024, but an increase of $71.9 million or 2.0% from Q3 2023[16] - Total gross loans decreased to $3.69 billion in Q3 2024, down $114.8 million or 3.0% from Q2 2024 and $36.7 million or 1.0% from Q3 2023[15] - The loan-to-deposit ratio improved to 98.3% from 99.8% at the end of Q2 2024[2] Interest Income and Expense - Net interest income increased by $603,000, or 2.4%, to $25.6 million from Q2 2024[7] - Interest expense on deposits increased to $34.2 million in Q3 2024, up $2.6 million from Q2 2024 and $7.0 million from Q3 2023[10] - The cost of total deposits was 3.58% in Q3 2024, compared to 3.46% in Q2 2024 and 2.99% in Q3 2023[10] - Total interest income for September 2024 was $51,895, an increase from $48,999 in September 2023, representing a year-over-year growth of 3.6%[32] Noninterest Income and Expense - Noninterest income decreased to $1.5 million in Q3 2024, down $241,000 from Q2 2024 and $204,000 from Q3 2023[13] - Noninterest expense rose to $15.8 million in Q3 2024, an increase of $221,000 from Q2 2024 and $523,000 from Q3 2023[14] - Total noninterest income for September 2024 was $1,522, compared to $1,763 in September 2023, showing a decline of 13.6%[32] - Total noninterest expense for September 2024 was $15,760, an increase from $15,539 in September 2023, reflecting a rise of 1.4%[32] Credit Quality - Nonperforming assets to total assets increased to 0.19% from 0.01% at the end of Q2 2024[3] - Annualized net loan charge-offs as a percentage of average loans were 0.10% for Q3 2024, compared to 0.00% in Q2 2024[3] - Nonperforming loans as of September 30, 2024, totaled $8,378 thousand, representing 0.23% of total loans, compared to $919 thousand or 0.02% as of December 31, 2023[37] - The allowance for credit losses to total loans ratio was 1.38% as of September 30, 2024, consistent with 1.36% as of September 30, 2023[36] Strategic Initiatives - The company announced the strategic acquisition of First Minnetonka City Bank, expected to close in Q4 2024[3] - The Company is in the process of acquiring First Minnetonka City Bank, which may present challenges and impact customer relationships[27] Capital Ratios - The Common Equity Tier 1 Risk-Based Capital Ratio improved to 9.79% at September 30, 2024, compared to 9.41% at June 30, 2024, and 9.07% at September 30, 2023[20] - Tangible Common Equity to Tangible Assets ratio improved to 8.17% from 7.90% in the previous quarter[39] Forward-Looking Statements - Forward-looking statements indicate potential risks including interest rate fluctuations and economic conditions that could affect future performance[25]

Wall Street expects a year-over-year decline in earnings on lower revenues when Bridgewater (BWB) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 23. ...

When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done. The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the s ...

Financial Performance - The Company reported financial results for the three and six months ended June 30, 2024, with annualized results not indicative of future performance[117] - Net income for Q2 2024 was $8.1 million, down from $9.8 million in Q2 2023, representing a decrease of approximately 17.3%[127] - Diluted earnings per share for Q2 2024 were $0.26, compared to $0.31 in Q2 2023, reflecting a decline of 16.1%[127] - Net interest income for Q2 2024 was $24,996, an increase from $24,631 in Q1 2024, showing a growth of 1.5%[125] - Noninterest income for Q2 2024 was $1,763, up from $1,550 in Q1 2024, indicating an increase of 13.7%[125] - Net interest income for Q2 2024 was $25.0 million, a decrease of $876,000 from $25.9 million in Q2 2023[139] - Average interest earning assets increased by $150.9 million, or 3.4%, to $4.55 billion in Q2 2024 compared to $4.40 billion in Q2 2023[141] - Total interest income for Q2 2024 was $61.2 million, up from $55.4 million in Q2 2023, reflecting a $5.8 million increase[142] - Net interest income for the six months ended June 30, 2024 was $49.6 million, a decrease of $4.8 million, or 8.8%, from $54.4 million for the same period in 2023[146] Assets and Liabilities - Total assets as of June 30, 2024, were $4,687,035, a slight decrease from $4,723,109 as of March 31, 2024[125] - Total assets reached $4,646,517 thousand as of June 30, 2024, compared to $4,483,662 thousand a year earlier, marking an increase of approximately 3.6%[131] - The company reported a total interest bearing liabilities of $3,445,199 thousand, up from $3,257,591 thousand in the previous year, reflecting an increase of about 5.8%[131] - Total deposits as of June 30, 2024, were $3.81 billion, an increase of $97.8 million from $3.71 billion at December 31, 2023, and an increase of $229.8 million, or 6.4%, from $3.58 billion at June 30, 2023[192] - Total gross loans reached $3.80 billion as of June 30, 2024, an increase of $76.1 million or 2.0% from December 31, 2023, and $64.2 million or 1.7% from June 30, 2023[172] Credit Quality - The ability to manage credit risk and maintain adequate allowance for credit losses is crucial for the Company's financial health[120] - Nonperforming loans totaled $678, an increase from $249 as of March 31, 2024[127] - The allowance for credit losses on loans to total loans was 1.37% as of June 30, 2024, slightly up from 1.36% as of March 31, 2024[127] - The allowance for credit losses was $(51.9) million as of June 30, 2024, compared to $(51.3) million at March 31, 2024[174] - Total nonperforming assets were $678,000 at June 30, 2024, consistent with the previous period[183] Operational Efficiency - The efficiency ratio for Q2 2024 was 58.7%, compared to 58.2% in Q1 2024, indicating a slight increase in operational costs relative to income[125] - Noninterest expense was $15.5 million for the second quarter of 2024, an increase of $1.3 million from $14.3 million for the same quarter in 2023[160] - The efficiency ratio was 58.7% for the second quarter of 2024, compared to 52.3% for the same quarter in 2023[162] Interest Rate Risk Management - The company manages interest rate risk through various strategies, including interest rate swaps and caps, to mitigate exposure[220] - The company’s management of interest rate risk is overseen by its ALM Committee, which sets limits and management targets for various metrics, including net interest income simulation[218] - In a hypothetical scenario of a 400 basis point increase in interest rates, the company would experience a 4.94% decrease in net interest income[222] - A 300 basis point decrease in interest rates would lead to a 9.98% increase in net interest income, highlighting the company's sensitivity to interest rate changes[222] Growth Strategy - The Company maintains a simple and efficient business model focused on providing responsive support and unconventional experiences to clients, driving profitable growth[122] - The company is focused on expanding its market presence and enhancing its product offerings to drive future growth and profitability[130] - The Company emphasizes the importance of attracting and retaining key personnel for effective growth strategy implementation[120] Regulatory and Market Risks - The Company faces risks including high interest rates, economic conditions, and competition from non-bank entities[120] - The impact of recent and future legislative changes, including those related to bank failures, is a significant consideration for the Company[121] - The Company is subject to inherent uncertainties and risks that could materially affect actual results compared to forward-looking statements[119]

Bridgewater Bancshares, Inc. (NASDAQ:BWB) Q2 2024 Earnings Conference Call July 25, 2024 9:00 AM ET Company Participants Justin Horstman - Vice President of Investor Relations Jerry Baack - President & Chief Executive Officer Joe Chybowski - President & Chief Financial Officer Nick Place - Chief Lending Officer Conference Call Participants Brendan Nosal - Hovde Group Jeff Rulis - D.A. Davidson Nathan Race - Piper Sandler Operator Good morning, and welcome to the Bridgewater Bancshares 2024 Second Quarter Ea ...

Net Interest Income and Margin Trends Net Interest Margin Drivers $2,711 $2,857 $2,909 $2,961 $2,984 $755 $755 $753 $701 $692 $546 $408 $415 $434 $461 $4,012 $4,020 $4,077 $4,096 $4,137 2.91% 3.10% 3.23% 3.34% 3.49% 2Q23 3Q23 4Q23 1Q24 2Q24 1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation Dollars in thousands $15,237 $15,740 $15,189 $15,539 9% 10% 26% 27% Dollars in millions $106 $102 $60 $45 $166 $147 $58 $44 $102 Dollars in millions Tangible Book Value Per Share1 Growth ...