Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ________ Commission File Number 001-38412 BRIDGEWATER BANCSHARES, INC. (Exact name of registrant as specified in its charter) ...

Exhibit 99.1 Media Contact: Jessica Stejskal | SVP Marketing Jessica.Stejskal@bwbmn.com | 952.893.6860 Investor Contact: Justin Horstman | VP Investor Relations Justin.Horstman@bwbmn.com | 952.542.5169 July 23, 2025 Bridgewater Bancshares, Inc. Announces Second Quarter 2025 Financial Results Second Quarter 2025 Highlights "Bridgewater's second quarter results demonstrated our ability to continue producing strong profitability and balance sheet growth trends as we also look to take advantage of continuing M& ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ________ Commission File Number 001-38412 BRIDGEWATER BANCSHARES, INC. (Exact name of registrant as specified in its charter ...

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 the three months ended March 31, 2025, was $9,633,000, up 17.5% from $8,204,000 in the previous quarter[34] - Basic earnings per share increased to $0.31 from $0.26 in the previous quarter, reflecting a 19.2% growth[34] - Net income available to common shareholders for Q1 2025 was $9,050,000, up from $7,571,000 in Q4 2024, representing a 19.5% increase[47] Revenue and Income - Pre-provision net revenue increased by $1.5 million, or 11.5%, from Q4 2024[2] - Net interest income rose by $3.2 million, or 12.0%, from Q4 2024, totaling $30.2 million for Q1 2025[8] - Noninterest income for Q1 2025 was $2,079,000, a decrease of 17.9% from $2,533,000 in Q4 2024[45] - Adjusted operating revenue for the same period was $32,286,000, compared to $29,500,000 in the prior quarter, reflecting a growth of 9.1%[46] Asset and Loan Growth - Gross loans increased by $151.6 million, or 15.9% annualized, from Q4 2024[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] - Average loans increased to $3,899,258,000 in Q1 2025, a rise of 4.5% from $3,730,532,000 in Q4 2024[45] Deposit Growth - Total deposits increased by $75.7 million, or 7.5% annualized, with core deposits up by $63.7 million, or 8.3% annualized, from Q4 2024[2] - Total deposits at March 31, 2025, were $4.16 billion, an increase of $75.7 million, or 7.5% annualized, from $4.09 billion at December 31, 2024[21] - Total deposits reached $4,162,457 thousand, up from $4,086,767 thousand, reflecting a growth of 1.9%[38] Efficiency and Ratios - Efficiency ratio improved to 55.5%, down from 56.8% in Q4 2024; adjusted efficiency ratio was 53.7%, down from 55.2%[2] - The efficiency ratio for the first quarter of 2025 was 55.5%, compared to 56.8% for the fourth quarter of 2024, indicating improved operational efficiency[18] - The adjusted efficiency ratio improved to 53.7% in Q1 2025 from 55.2% in Q4 2024, indicating better cost management[46] Credit Quality - The provision for credit losses on loans was $1.5 million for Q1 2025, unchanged from Q4 2024[14] - Nonperforming assets to total assets ratio was 0.20% at March 31, 2025, compared to 0.01% at December 31, 2024[2] - Nonperforming loans increased to $10,290, compared to $301 in the previous quarter, showing a significant rise[43] - The allowance for credit losses on loans to total loans was 1.34% at March 31, 2025, slightly down from 1.35% at December 31, 2024[18] Shareholder 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 total common shareholders' equity was $402,461,000 as of March 31, 2025, up from $391,421,000 in the previous quarter[46] Capital Ratios - 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] - The Tier 1 leverage ratio as of March 31, 2025, was 9.10%, down from 9.45% in the previous quarter, reflecting changes in capital structure[35] - The tangible common equity to tangible assets ratio was 7.48% as of March 31, 2025, compared to 7.36% in the previous quarter[46] Other Financial Metrics - Total assets as of March 31, 2025, reached $5,136,808,000, up from $5,066,242,000 at the end of the previous quarter[34] - Cash and cash equivalents decreased to $166,205 thousand from $229,760 thousand, a decline of 27.7%[38] - Interest expense for the quarter was $35,500,000, a slight decrease from $36,357,000 in the previous quarter[39]

Financial Performance - Net Income for 2024 was $32,825,000, down 17.9% from $39,960,000 in 2023[303] - Basic Earnings Per Share decreased to $1.05 in 2024 from $1.29 in 2023, a decline of 18.6%[303] - Net income for 2024 was $32.8 million, down from $40.0 million in 2023, representing a decrease of 18%[313] - Earnings per diluted common share decreased to $1.03 in 2024 from $1.27 in 2023, a decline of 18.9%[313] - Adjusted net income for 2024 was $33.4 million, compared to $40.0 million in 2023, a decrease of 16.5%[313] - Pre-Provision Net Revenue for 2024 is $45,876 thousand, a decrease of 11.0% from $51,588 thousand in 2023[425] - Net Income for 2024 is $32,825 thousand, down 17.7% from $39,960 thousand in 2023[425] - Net income available to common shareholders for 2024 is $28,771,000, a decrease of 20% from $35,906,000 in 2023[427] Asset and Loan Growth - Total Assets increased by 9.8% to $5,066,242,000 in 2024 from $4,611,990,000 in 2023[304] - Total Loans, Gross rose by 3.9% to $3,868,514,000 in 2024 compared to $3,724,282,000 in 2023[304] - Total assets increased to $4.68 billion in 2024 from $4.49 billion in 2023, an increase of 4.2%[318] - Total gross loans rose by $144.2 million, or 3.9%, to $3.87 billion at December 31, 2024, compared to $3.72 billion in 2023[373] - The Company experienced a moderation in loan growth in 2024, with a 0.7% increase excluding loans acquired in the FMCB transaction[373] Deposits and Funding - Deposits grew by 10.2% to $4,086,767,000 in 2024 from $3,709,948,000 in 2023[304] - The acquisition of FMCB added approximately $245,000,000 in assets and $225,700,000 in deposits[308] - The company had total uninsured deposits of approximately $1.14 billion, or 28% of total deposits, at December 31, 2024, compared to $900.0 million, or 24%, in 2023[393] - Brokered deposits decreased by $198.7 million to $825.8 million at December 31, 2024, from $1.02 billion in 2023[391] - Core deposits totaled approximately $3.11 billion at December 31, 2024, representing 76.0% of total deposits[420] Interest Income and Expense - Net Interest Income for 2024 was $102,193,000, a decrease of 2.3% from $105,174,000 in 2023[303] - Total interest income on a tax-equivalent basis for 2024 was $247.1 million, an increase of $23.2 million, or 10.4%, from $223.9 million in 2023[328] - Interest income on loans for 2024 was $205.6 million, a $13.0 million, or 6.7%, increase from $192.7 million in 2023[330] - Interest expense on interest bearing liabilities was $143.7 million for 2024, an increase of $26.5 million, or 22.6%, from $117.2 million in 2023[332] - Interest expense on deposits rose to $128.8 million in 2024, a $32.8 million, or 34.1%, increase from $96.0 million in 2023[333] Efficiency and Ratios - The Efficiency Ratio increased to 57.9% in 2024 from 53.0% in 2023[303] - Return on Average Assets (ROA) for 2024 was 0.70%, down from 0.89% in 2023[303] - Return on average shareholder's equity (ROE) decreased to 7.45% in 2024 from 9.73% in 2023, a decline of 23.5%[314] - Core Net Interest Margin decreased to 2.19% in 2024 from 2.34% in 2023[426] - Adjusted return on average assets for 2024 is 0.71%, down from 0.89% in 2023, indicating a decrease of 20.2%[427] Credit Quality - Nonperforming Loans decreased to $301,000 in 2024 from $919,000 in 2023[304] - The allowance for credit losses on loans and leases was $52.3 million at December 31, 2024, an increase of $1.8 million from $50.5 million in 2023[385] - Loans classified as "watch/special mention" totaled $46.6 million at December 31, 2024, compared to $26.5 million in 2023, indicating a growing concern over asset quality[380] - The total balance of nonperforming assets and modified accruing loans was $301 thousand in 2024, down from $10,528 thousand in 2023[382] - The percentage of nonaccrual loans to total loans was 0.01% as of December 31, 2024, unchanged from 0.02% in 2023[382] Employee and Operational Changes - The company had 290 full-time equivalent employees at December 31, 2024, an increase from 255 employees in 2023, largely due to the FMCB acquisition[357] - Noninterest expense totaled $63.3 million for the year ended December 31, 2024, a $4.0 million, or 6.7%, increase from $59.3 million in 2023, mainly due to higher salaries and merger-related expenses[356] Capital and Liquidity - Total risk-based capital for the Company as of December 31, 2024, was $585,966 thousand, representing a ratio of 13.76%[408] - The Company's Tier 1 risk-based capital was $453,049 thousand, with a ratio of 10.64% as of December 31, 2024[408] - Total on- and off-balance sheet liquidity increased to $2.30 billion as of December 31, 2024, compared to $2.23 billion in 2023[418] - The ratio of primary liquidity to total deposits increased to 16.3% as of December 31, 2024, compared to 14.3% in 2023[419] - The Company maintained compliance with all established liquidity guidelines as of December 31, 2024[422]

Financial Performance - Net income for Q4 2024 was $8.2 million, or $0.26 per diluted common share, a decrease from $8.7 million in Q3 2024[5] - Net income for the quarter was $8,204,000, a decrease of 5.4% compared to $8,675,000 in the previous quarter[41] - Net income available to common shareholders for the year ended December 31, 2024, was $28,771,000, down from $35,906,000 in 2023, a decrease of 20%[46] - Net income for Q4 2024 was $8,204,000, a decrease from $8,873,000 in Q4 2023, representing a decline of 7.5%[46] - Basic earnings per share (EPS) for the quarter was $0.26, consistent with the previous quarter's EPS of $0.28[41] Deposits and Loans - Core deposits increased by $428.2 million, or 63.6% annualized, from Q3 2024; excluding the acquisition of First Minnetonka City Bank (FMCB), core deposits increased by $210.9 million, or 31.3% annualized[4] - Gross loans increased by $182.9 million, or 19.7% annualized, from Q3 2024; excluding FMCB, gross loans increased by $65.8 million, or 7.1% annualized[4] - Total deposits increased by $376.8 million, or 10.2%, in 2024; core deposits increased by $559.4 million, or 22.0%[4] - Total gross loans reached $3.87 billion in Q4 2024, an increase of $182.9 million, or 5.0%, from Q3 2024[23] - Total deposits were $4.09 billion in Q4 2024, an increase of $339.3 million, or 9.1%, from Q3 2024[24] Interest Income and Expenses - Net interest income for Q4 2024 was $27.0 million, an increase of $1.4 million from Q3 2024[11] - Total interest income for Q4 2024 was $63,324,000, an increase from $58,669,000 in Q4 2023, representing an 8.8% year-over-year growth[46] - Interest expense on deposits was $32.8 million in Q4 2024, down $1.4 million from Q3 2024, and up $3.4 million from Q4 2023[16] - The cost of interest-bearing liabilities decreased to 4.06% in Q4 2024 from 4.27% in Q3 2024, while it was 3.97% in Q4 2023[15] - The company reported a total interest expense of $36,357,000 for Q4 2024, compared to $33,239,000 in Q4 2023, which is an increase of 9.4%[46] Asset Quality - Nonperforming assets to total assets ratio was 0.01% for the year ended December 31, 2024, compared to 0.02% at December 31, 2023[4] - Nonperforming assets totaled $301,000, or 0.01% of total assets, at December 31, 2024, down from $8.8 million, or 0.19% of total assets, at September 30, 2024[31] - Annualized net charge-offs as a percentage of average loans were 0.03% for Q4 2024, compared to 0.10% for Q3 2024, and 0.01% for Q4 2023[31] - The provision for credit losses on loans was $1.5 million in Q4 2024, including $950,000 for non-Purchase Credit Deteriorated loans[17] - Loans with potential weaknesses totaled $46.6 million at December 31, 2024, compared to $32.0 million at September 30, 2024[31] Capital and Equity - Tangible book value per share increased by 5.1% to $13.49 at December 31, 2024[4] - Total shareholders' equity rose to $457.9 million in Q4 2024, an increase of $5.7 million, or 1.3%, from Q3 2024[30] - The Common Equity Tier 1 Risk-Based Capital Ratio was 9.08% at December 31, 2024, down from 9.79% at September 30, 2024[31] - Tangible common equity as a percentage of tangible assets was 7.36% at December 31, 2024, compared to 8.17% at September 30, 2024[31] Operational Efficiency - The efficiency ratio improved to 56.8% in Q4 2024 from 58.0% in Q3 2024[22] - Total noninterest expense for Q4 2024 was $16,812,000, up from $15,740,000 in Q4 2023, indicating a 6.8% increase[46] - Adjusted Noninterest Expense to Average Assets (Annualized) was 1.36% for December 31, 2024, compared to 1.31% for September 30, 2024[54] Future Outlook - The Company will host a conference call on January 30, 2025, to discuss its Q4 2024 financial results[33] - The Company declared a quarterly cash dividend of $36.72 per share on its 5.875% Non-Cumulative Perpetual Preferred Stock, payable on March 3, 2025[32]

Financial Performance - Net income for Q3 2024 was $8.7 million, a decrease from $9.6 million in Q3 2023, with diluted earnings per share of $0.27 compared to $0.30 in the prior year[143]. - Net interest income increased to $25.6 million in Q3 2024 from $25.3 million in Q2 2024, while noninterest income was $1.5 million, down from $1.8 million in the previous quarter[140]. - Basic earnings per share for the nine months ended September 30, 2024, were $0.77, down from $0.99 for the same period in 2023[143]. - Net income for the nine months ended September 30, 2024, was $24.6 million, down from $31.1 million for the same period in 2023, indicating a 20.0% decrease[247]. - The company reported a pre-provision net revenue of $11.4 million for the three months ended September 30, 2024, compared to $11.0 million in the previous quarter, marking a 3.5% increase[247]. Asset and Liability Management - The Company reported total assets of approximately $4.9 billion, with $4.0 billion in deposits and $3.9 billion in loans and leases expected post-acquisition of First Minnetonka City Bank[138]. - Total assets as of September 30, 2024, were $4.69 billion, slightly up from $4.69 billion as of June 30, 2024[140]. - Total assets increased to $4,703,804 thousand as of September 30, 2024, compared to $4,504,937 thousand as of September 30, 2023, indicating a growth of 4.41%[147]. - Total deposits reached $3.747 billion as of September 30, 2024, an increase of $37.5 million, or 1.0%, from December 31, 2023[221]. - Total interest bearing liabilities rose to $3,491,118 thousand for the three months ended September 30, 2024, compared to $3,264,556 thousand for the same period in 2023, marking an increase of 6.93%[147]. Credit Quality and Risk Management - The Company is actively managing credit risk and maintaining an adequate level of allowance for credit losses on loans[135]. - Nonperforming loans increased to $8.4 million, representing 0.23% of total loans, compared to $0.68 million or 0.02% in the previous quarter[141]. - The allowance for credit losses was $51,018,000 as of September 30, 2024, reflecting a slight decrease from $51,949,000 on June 30, 2024[204]. - The provision for credit losses on loans was $1.5 million for the nine months ended September 30, 2024, compared to $2.1 million for the same period in 2023[178]. - The company continues to emphasize credit quality, with no assets classified as "doubtful" or "loss" as of September 30, 2024[211]. Acquisition and Expansion - The acquisition of First Minnetonka City Bank is an all-cash transaction, with the merger expected to close in the fourth quarter of 2024[137]. - The Company has received all necessary regulatory approvals for the acquisition, indicating a positive outlook for future expansion[138]. - The merger with First Minnetonka City Bank will enhance the Company's market presence with nine full-service branches across the Twin Cities[138]. - The Company emphasizes the importance of attracting and retaining key personnel to implement its growth strategy effectively[135]. Income and Expense Analysis - Noninterest income for Q3 2024 was $1.5 million, a decrease of $204,000 from $1.7 million in Q3 2023, primarily due to the absence of prior year FHLB prepayment income[182]. - Noninterest expense for Q3 2024 was $15.8 million, an increase of $523,000 from $15.2 million in Q3 2023, driven by higher salaries and consulting fees related to the acquisition of First Minnetonka City Bank[185]. - The efficiency ratio improved to 58.0% in Q3 2024 from 58.7% in Q2 2024, indicating better cost management[140]. - The efficiency ratio for Q3 2024 was 58.0%, compared to 56.1% in Q3 2023, indicating increased operational costs relative to income[189]. Capital and Liquidity - Total shareholders' equity increased to $452.2 million, a rise of $26.7 million or 6.3% compared to $425.5 million at December 31, 2023[230]. - The Company maintained a commitment to strong capital levels while executing its stock repurchase program, with $15.3 million remaining for future repurchases[233]. - Total risk-based capital for the Company was $589.1 million with a ratio of 14.62% as of September 30, 2024, exceeding the minimum required[235]. - Total on- and off-balance sheet liquidity was $2.29 billion as of September 30, 2024, compared to $2.23 billion at December 31, 2023[242]. Interest Rate Exposure - The company has a total notional amount of $308.0 million in cash flow hedges as of September 30, 2024, to manage interest rate exposure[253]. - In a hypothetical scenario of a 400 basis point increase in interest rates, the company would experience a 6.58% decrease in net interest income[257]. - The average rate paid on interest-bearing transaction deposits increased to 4.63% for the three months ended September 30, 2024, compared to 3.88% for the same period in 2023[224].

Financial Performance - Net Interest Income for Q2 2024 was $24,996,000, an increase from $24,631,000 in Q1 2024[138] - Noninterest Income rose to $1,763,000 in Q2 2024, compared to $1,550,000 in Q1 2024[138] - Net Income for Q2 2024 was $8,115,000, up from $7,831,000 in Q1 2024[138] - Basic Earnings Per Share increased to $0.26 in Q2 2024 from $0.25 in Q1 2024[138] - Net income for Q2 2024 was $8.1 million, down from $9.8 million in Q2 2023, with diluted earnings per share decreasing from $0.31 to $0.26[141] - Adjusted operating revenue for the six months ended June 30, 2024, was $52,527,000, compared to $57,803,000 for the same period in 2023, reflecting a decrease of approximately 9.9%[248] Asset and Loan Metrics - Total Assets as of June 30, 2024, were $4,687,035,000, a slight decrease from $4,723,109,000 at the end of Q1 2024[138] - Total Loans, Gross reached $3,800,385,000 in Q2 2024, compared to $3,784,205,000 in Q1 2024[138] - Total assets as of June 30, 2024, were $4.62 billion, up from $4.44 billion a year earlier[148] - Total gross loans increased to $3.80 billion as of June 30, 2024, up $76.1 million or 2.0% from $3.72 billion at December 31, 2023[202] - Real estate mortgage lending constituted 81.1% of the total loan portfolio as of June 30, 2024, indicating a stable composition compared to prior periods[205] Deposits and Liquidity - Deposits remained stable at $3,807,712,000 in Q2 2024, compared to $3,807,225,000 in Q1 2024[138] - Total deposits reached $3.81 billion at June 30, 2024, an increase of $97.8 million from $3.71 billion at December 31, 2023, and a 6.4% increase from $3.58 billion at June 30, 2023[222] - Brokered deposits increased to $1.03 billion as of June 30, 2024, up by $7.8 million from $1.02 billion at December 31, 2023[224] - The Bank's borrowing availability from the Federal Reserve discount window was approximately $1.02 billion as of June 30, 2024, indicating strong liquidity[228] Credit Quality - Nonperforming loans rose to $678,000 in Q2 2024 from $249,000 in Q1 2024, with nonperforming loans to total loans at 0.02%[139] - The allowance for credit losses on loans to total loans ratio remained stable at 1.37%[139] - The total allowance for credit losses was $51.9 million as of June 30, 2024, compared to $51.3 million at March 31, 2024[204] - Loans classified as "watch" totaled $30.4 million at June 30, 2024, compared to $26.5 million at December 31, 2023[212] Interest Income and Expense - Total interest earning assets increased to $4.55 billion in Q2 2024, compared to $4.40 billion in Q2 2023, with net interest income at $25.29 million, down from $26.28 million[145] - Interest income on loans for Q2 2024 was $51.6 million, an increase of $3.5 million from $48.1 million in Q2 2023, due to growth and repricing in the loan portfolio[162] - Interest expense on interest bearing liabilities was $35.9 million for Q2 2024, an increase of $6.8 million from $29.1 million in Q2 2023, primarily due to deposit repricing[164] - The average rate paid on interest bearing liabilities was 4.11% for the six months ended June 30, 2024, compared to 3.32% for the same period in 2023[171] Capital and Equity - Total shareholders' equity increased by $13.7 million, or 3.2%, to $439.2 million as of June 30, 2024, primarily due to retained net income[231] - Tangible book value per share rose to $13.53, a 5.4% increase from $12.84 as of December 31, 2023[232] - The Company maintained a total risk-based capital ratio of 14.16% as of June 30, 2024, exceeding the minimum required ratio of 8.00%[235] Risk Management - The company maintains a risk management program to manage credit exposure within the loan portfolio, including stress testing and portfolio monitoring tools[201] - The company expects no significant changes in the composition of the loan portfolio or in the emphasis on real estate lending in the foreseeable future[205] - The company has entered into hedging transactions, including interest rate swaps and caps, with a total notional amount of $278.0 million as of June 30, 2024[254]

Financial Performance - Net Income for Q1 2024 was $7,831,000, down 11.8% from $8,873,000 in Q4 2023[122] - Basic Earnings Per Share for Q1 2024 was $0.25, compared to $0.28 in Q4 2023, reflecting a decrease of 10.7%[122] - Net income for Q1 2024 was $7.8 million, down from $11.6 million in Q1 2023, with diluted earnings per share decreasing from $0.37 to $0.24[125] - Noninterest income decreased to $1.6 million in Q1 2024, down $393,000 from $1.9 million in Q1 2023[148] - Noninterest expense increased to $15.2 million in Q1 2024, up $1.1 million from $14.1 million in Q1 2023[150] - The efficiency ratio was 58.2% for Q1 2024, compared to 45.9% for Q1 2023[153] - Net income for the three months ended March 31, 2024, was $7.83 million, down from $8.87 million in the previous quarter, reflecting a decrease of 11.7%[211] - The efficiency ratio improved to 58.2% for the three months ended March 31, 2024, compared to 58.8% in the previous quarter[212] Interest Income and Expenses - Net Interest Income for Q1 2024 was $24,631,000, a decrease of 2.7% from $25,314,000 in Q4 2023[122] - Noninterest Income increased to $1,550,000 in Q1 2024, up from $1,409,000 in Q4 2023, representing an increase of 10%[122] - Total interest income was $59.0 million for Q1 2024, an increase of $6.7 million from $52.4 million in Q1 2023[137] - Interest income on loans was $49.9 million for Q1 2024, compared to $45.3 million in Q1 2023, reflecting a $4.6 million increase[139] - Interest expense on interest bearing liabilities rose to $34.0 million in Q1 2024, an increase of $10.6 million from $23.4 million in Q1 2023[141] - The net interest margin for Q1 2024 was 2.24%, a decline of 48 basis points from 2.72% in Q1 2023[133] - Core net interest margin, excluding loan fees, was 2.18% for Q1 2024, down 44 basis points from 2.62% in Q1 2023[133] Asset and Loan Growth - Total Assets as of March 31, 2024, were $4,723,109,000, an increase from $4,611,990,000 at the end of 2023[122] - Total Loans, Gross reached $3,784,205,000, up from $3,724,282,000 in Q4 2023, indicating a growth of 1.6%[122] - Total gross loans increased to $3.78 billion as of March 31, 2024, reflecting a growth of $59.9 million, or 1.6%, from $3.72 billion at December 31, 2023, and an increase of $99.8 million, or 2.7%, from $3.68 billion at March 31, 2023[164] - The loan portfolio's annualized growth rate was 6.5% during the first quarter of 2024, driven by increased loan demand and originations, despite a moderation in loan payoffs[164] - Real estate mortgage lending constituted 79.9% of the total loan portfolio as of March 31, 2024, with no significant changes expected in the composition in the foreseeable future[166] Deposits and Funding - Deposits increased to $3,807,225,000 in Q1 2024, compared to $3,709,948,000 in Q4 2023, marking a rise of 2.6%[122] - Total deposits reached $3.81 billion at March 31, 2024, an increase of $97.3 million, or 2.6%, compared to $3.71 billion at December 31, 2023[185] - Core deposits increased by $90.3 million, or 14.3% annualized, from the fourth quarter of 2023, driven by existing client balances and new client acquisitions[185] - Brokered deposits decreased to $992.8 million at March 31, 2024, down by $31.7 million from $1.02 billion at December 31, 2023[187] - Total uninsured deposits were approximately $989.1 million, or 26.0% of total deposits, at March 31, 2024, up from $900.0 million, or 24.3%, at December 31, 2023[188] Credit Quality and Risk Management - Provision for Credit Losses was $750,000 in Q1 2024, compared to a recovery of $250,000 in Q4 2023[122] - Nonperforming loans decreased to $249,000 in Q1 2024 from $919,000 in Q4 2023, with nonperforming loans to total loans remaining at 0.01%[123] - The allowance for credit losses on loans to total loans remained stable at 1.36% across the reporting periods[123] - Total nonperforming assets decreased to $269,000 at March 31, 2024, from $919,000 at December 31, 2023, reflecting a significant improvement[175] - The Company employs a risk management program to manage credit exposure, including board oversight and stress testing[163] - The Company emphasizes credit quality in its loan origination and monitoring processes, with a focus on minimizing classified and nonperforming assets[171] Capital and Equity - The Tier 1 Risk-based Capital Ratio stood at 10.83% as of March 31, 2024, slightly up from 10.79% in Q4 2023[122] - Total shareholders' equity increased to $433.6 million as of March 31, 2024, reflecting a 1.9% increase from $425.5 million at December 31, 2023[194] - Tangible book value per share rose to $13.20, a 2.9% increase from $12.84 as of December 31, 2023[195] - Tangible common equity was $364.3 million, up from $356.2 million as of December 31, 2023[212] Interest Rate Risk Management - The Company has a total notional amount of $308.0 million in cash flow hedges as of March 31, 2024, and December 31, 2023, aimed at mitigating interest rate exposure[217] - In the event of a 400 basis point increase in interest rates, the Company would experience a 1.74% decrease in net interest income as of March 31, 2024[221] - A 300 basis point decrease in interest rates would result in a 6.47% increase in net interest income[221] - The Company manages interest rate risk by adjusting interest rates and terms associated with investment securities and customer deposits[216] - The Company does not engage in speculative trading activities related to interest rates or foreign exchange rates[215]

Financial Performance - Net Interest Income for 2023 was $105,174,000, a decrease of 18.9% from $129,698,000 in 2022[297]. - Net Income for 2023 was $39,960,000, down 25.2% from $53,392,000 in 2022[297]. - Basic Earnings Per Share decreased to $1.29 in 2023 from $1.78 in 2022, a decline of 27.5%[297]. - Percentage Change in Net Income for 2023 was (25.2%), reflecting a significant decline compared to the previous year[297]. - Net income for the year ended December 31, 2023, was $40.0 million, a decrease of 25% from $53.4 million in 2022[313]. - Earnings per diluted common share decreased to $1.27 in 2023 from $1.72 in 2022, reflecting a decline of approximately 26.2%[313]. - Return on Average Assets (ROA) for 2023 was 0.89%, down from 1.38% in 2022[297]. - Return on Equity (ROE) fell to 9.73% in 2023 from 13.90% in 2022, a decline of 30%[313]. Asset and Liability Management - Total Assets increased by 6.1% to $4,611,990,000 in 2023 from $4,345,662,000 in 2022[297]. - Total Loans, Gross rose by 4.3% to $3,724,282,000 in 2023 compared to $3,569,446,000 in 2022[297]. - Total Deposits increased by 8.6% to $3,709,948,000 in 2023 from $3,416,543,000 in 2022[297]. - Total interest-earning assets increased to $4,404,366 thousand with an average yield of 5.08% for the year ending December 31, 2023, compared to $3,790,291 thousand and 4.35% in 2022[319]. - Total interest-bearing liabilities increased to $3,246,135 thousand with an average cost of 3.61%, compared to $2,528,360 thousand and 1.34% in 2022[320]. - Total assets grew to $4,490,804 thousand, up from $3,866,480 thousand in 2022[319]. - Total liabilities increased by $234.9 million, or 5.9%, to $4.19 billion as of December 31, 2023[366]. - Total deposits as of December 31, 2023, were $3.71 billion, an increase of $293.4 million, or 8.6%, compared to $3.42 billion in 2022[396]. Credit Quality - Nonperforming Loans increased to $919,000 in 2023 from $639,000 in 2022[298]. - The allowance for credit losses on loans was $50.5 million at December 31, 2023, an increase of $2.5 million from $48.0 million at December 31, 2022[390]. - The allowance for credit losses as a percentage of total loans was 1.36% at December 31, 2023, compared to 1.34% at December 31, 2022[390]. - Total net charge-offs for 2023 were $202,000, compared to a recovery of $(276,000) in 2022, indicating a significant shift in credit performance[391]. - Loans classified as watch totaled $26.5 million at December 31, 2023, down from $32.3 million at December 31, 2022[382]. - Loans classified as substandard totaled $35.9 million at December 31, 2023, compared to $28.0 million at December 31, 2022[382]. Operational Efficiency - The Efficiency Ratio for 2023 was 53.0%, compared to 41.5% in 2022, indicating increased operational costs[297]. - Noninterest expense totaled $59.3 million for the year ended December 31, 2023, a $2.7 million, or 4.8%, increase from $56.6 million in 2022[355]. - The efficiency ratio was 53.0% for the year ended December 31, 2023, compared to 41.5% for the year ended December 31, 2022[358]. Interest Income and Expense - Total interest income for 2023 was $223.9 million, an increase of $59.0 million or 35.8% compared to $164.9 million in 2022[328]. - Interest income on loans for 2023 was $192.7 million, a $45.9 million or 31.2% increase from $146.8 million in 2022[330]. - Interest expense on interest-bearing liabilities was $117.2 million for 2023, an increase of $83.2 million or 244.7% compared to $34.0 million in 2022[332]. - The cost of total deposits was 2.73% for 2023, a 198 basis point increase from 0.75% in 2022[333]. - The net interest margin improved to 2.42% for the year, compared to 2.34% in 2022[320]. Capital and Equity - The company’s total equity reached $410,478,384 thousand, reflecting a strong capital position[320]. - Shareholders' equity increased by $31.5 million, or 8.0%, to $425.5 million in 2023 from $394.1 million in 2022[408]. - Tangible book value per share rose to $12.84, a 9.8% increase from $11.69 in 2022[409]. - Total risk-based capital ratio for the company was 13.97% as of December 31, 2023, exceeding the minimum required ratio of 8.00%[415]. Liquidity Management - As of December 31, 2023, total on- and off-balance sheet liquidity was $2.23 billion, an increase from $1.38 billion at December 31, 2022[425]. - Core deposits totaled approximately $2.55 billion, representing 68.7% of total deposits as of December 31, 2023[427]. - The ratio of primary liquidity to total deposits was 14.3% as of December 31, 2023, down from 17.5% at December 31, 2022[426]. - The Company had outstanding letters of credit with the FHLB amounting to $114.4 million as of December 31, 2023, compared to $78.4 million in 2022[421]. Interest Rate Sensitivity - As of December 31, 2023, a 400 basis point increase in interest rates would lead to a 2.39% decrease in net interest income, amounting to $118,597 thousand[439]. - A 300 basis point decrease in interest rates would result in an 8.86% increase in net interest income, reaching $132,269 thousand[439]. - The projected net interest income is sensitive to the timing and magnitude of interest rate changes, which could lead to significant variations from the simulation results[440].