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].

Financial Performance - The Company reported financial results for the three and nine months ended September 30, 2023, with annualized results not indicative of future performance [160]. - Net income for Q3 2023 was $9.6 million, down from $14.5 million in Q3 2022, with diluted earnings per share of $0.30 compared to $0.47 in the prior year [183]. - Net interest income for Q3 2023 was $25,421, a decrease from $34,095 in Q3 2022 [182]. - The efficiency ratio for Q3 2023 was 56.5%, compared to 39.8% in Q3 2022, indicating increased operational costs relative to income [181]. - Net interest income for the nine months ended September 30, 2023, was $79.9 million, a decrease of $16.9 million, or 17.5%, compared to $96.8 million for the same period in 2022 [208]. - The company's net income for the nine months ended September 30, 2023, was $31.09 million, compared to $39.66 million for the same period in 2022, indicating a decrease of approximately 21.5% [287]. Assets and Loans - Total assets as of September 30, 2023, were $4,557,070, an increase from $4,128,987 as of September 30, 2022 [181]. - Total loans, gross, were $3,722,271 as of September 30, 2023, compared to $3,380,082 as of September 30, 2022 [181]. - Total gross loans increased by $152.8 million, or 4.3%, to $3.72 billion at September 30, 2023, compared to $3.57 billion at December 31, 2022 [233]. - The total loans, net, amounted to $3.66 billion as of September 30, 2023 [244]. - The annualized loan growth for the nine months ended September 30, 2023, was 5.7% [243]. Interest Income and Expenses - The net interest margin for Q3 2023 was 2.32%, down from 3.53% in Q3 2022 [181]. - Interest income on loans for the nine months ended September 30, 2023, was $142.7 million, compared to $104.1 million for the same period in 2022, reflecting a $38.5 million increase [214]. - Interest expense on interest bearing liabilities increased by $65.9 million to $83.9 million for the nine months ended September 30, 2023, compared to $18.0 million for the same period in 2022 [215]. - The average rate paid on interest bearing liabilities was 3.49% for the nine months ended September 30, 2023, compared to 1.00% for the same period in 2022 [211]. Credit Losses and Allowances - The allowance for credit losses was $50,585 as of September 30, 2023, compared to $46,491 as of September 30, 2022 [181]. - The provision for credit losses on loans was $2.1 million for the nine months ended September 30, 2023, compared to $6.2 million for the same period in 2022 [218]. - The allowance for credit losses on loans to total loans was 1.36% at September 30, 2023, compared to 1.38% at September 30, 2022 [220]. - Nonperforming loans totaled $749,000 at September 30, 2023, an increase of $110,000 from $639,000 at December 31, 2022 [251]. Deposits and Liquidity - Deposits increased to $3,675,509 as of September 30, 2023, from $3,305,074 as of September 30, 2022 [181]. - Total deposits reached $3.68 billion, an increase of $259 million, or 7.6%, compared to $3.42 billion at December 31, 2022 [259]. - Brokered deposits amounted to $1.0 billion, reflecting an increase of $225.9 million from $776.2 million at December 31, 2022 [261]. - Total on- and off-balance sheet liquidity was $2.18 billion as of September 30, 2023, compared to $1.38 billion at December 31, 2022 [282]. Operational Efficiency - The average return on assets for the nine months ended September 30, 2023, was 1.22%, down from 2.15% for the same period in 2022 [287]. - Noninterest expense increased by $1.2 million to $15.4 million for the third quarter of 2023, and increased by $2.5 million, or 6.0%, to $43.9 million for the nine months ended September 30, 2023, mainly due to higher FDIC insurance assessments [224][225]. - The efficiency ratio increased to 56.5% for the three months ended September 30, 2023, up from 52.7% in the previous quarter [289]. Capital and Shareholders' Equity - Total shareholders' equity increased to $416.0 million as of September 30, 2023, up by $21.9 million from $394.1 million at December 31, 2022 [270]. - Tangible book value per share rose to $12.37, reflecting a 5.8% increase from $11.69 as of December 31, 2022 [271]. - The Company's total risk-based capital was $567.2 million with a ratio of 13.88% as of September 30, 2023, exceeding the minimum required for capital adequacy [274]. Risk Factors - The Company faces risks including interest rate fluctuations, economic conditions, and competition from nonbank entities [162]. - Future performance is subject to uncertainties, including potential economic downturns and regulatory changes impacting the financial services industry [161].

Financial Performance - The Company reported financial results for the three and six months ended June 30, 2023, with annualized results not indicative of future performance[155]. - Net income for Q2 2023 was $9.8 million, down from $12.9 million in Q2 2022, with diluted earnings per share decreasing from $0.41 to $0.31[179]. - The company reported a diluted earnings per share of $0.69 for the six months ended June 30, 2023, down from $0.80 for the same period in 2022[179]. - Net income for the six months ended June 30, 2023, was $21.5 million, down from $25.1 million for the same period in 2022, a decrease of 14.3%[281]. - Adjusted operating revenue for the three months ended June 30, 2023, was $27,237,000, down from $30,566,000 in the previous quarter[1]. Income and Expenses - Net interest income for Q2 2023 was $25.9 million, compared to $32.9 million in Q2 2022, reflecting a decrease in net interest margin from 3.16% to 2.40%[178]. - Noninterest income for Q2 2023 was $1.4 million, a decrease of $235,000 from $1.7 million in Q2 2022, primarily due to lower letter of credit fees[216]. - Noninterest expense for Q2 2023 was $14.4 million, an increase of $636,000 from $13.8 million in Q2 2022, driven by higher FDIC insurance assessments[219]. - The efficiency ratio for Q2 2023 was 52.7%, compared to 43.8% in Q2 2022, indicating increased operational costs relative to income[177]. Assets and Liabilities - Total assets as of June 30, 2023, were $4.6 billion, an increase from $3.9 billion a year earlier[177]. - Total deposits reached $3.6 billion as of June 30, 2023, up from $3.2 billion a year earlier[177]. - Total interest earning assets increased to $4,395,051 thousand for the three months ended June 30, 2023, compared to $3,671,748 thousand for the same period in 2022, reflecting a growth of 19.7%[183]. - Total gross loans reached $3.74 billion at June 30, 2023, an increase of $166.8 million or 4.7% from $3.57 billion at December 31, 2022[228]. - The total allowance for credit losses was $50.7 million as of June 30, 2023[237]. Credit Quality - The allowance for credit losses on loans is a valuation account that reflects the net amount expected to be collected, with management making estimates based on current conditions and forecasts[163][166]. - Provision for credit losses was $50,000 in Q2 2023, compared to $3.0 million in Q2 2022, indicating improved credit quality[178]. - The provision for credit losses on loans was $2.1 million for the six months ended June 30, 2023, compared to $4.7 million for the same period in 2022[212]. - Loans classified as "watch" totaled $27.2 million at June 30, 2023, down from $32.3 million at December 31, 2022[245]. - Total nonperforming assets increased to $778,000 as of June 30, 2023, from $639,000 at December 31, 2022, representing a growth of 21.8%[247]. Risk Management - The Company faces various risks including interest rate fluctuations, economic conditions, and competition from nonbank entities[157][158]. - Management emphasizes the importance of effective risk management frameworks and the ability to attract and retain key personnel[157]. - The Company has entered into cash flow hedges with a total notional amount of $308.0 million as of June 30, 2023, to manage interest rate exposure[1]. - In a hypothetical scenario of a 400 basis point increase in interest rates, the company would experience a 7.68% decrease in net interest income[1]. - The simulation analysis indicates that actual net interest income may vary significantly due to timing and magnitude of interest rate changes[293]. Capital and Liquidity - Total shareholders' equity increased to $409.1 million as of June 30, 2023, from $394.1 million at December 31, 2022, reflecting a $15.1 million increase[264]. - The Company’s total risk-based capital was $558.0 million with a ratio of 13.50% as of June 30, 2023, exceeding the minimum required capital[268]. - Total on- and off-balance sheet liquidity was $1.96 billion as of June 30, 2023, compared to $1.38 billion at December 31, 2022[276]. - Core deposits amounted to approximately $2.51 billion, accounting for 70.3% of total deposits as of June 30, 2023[278]. - The ratio of primary and secondary liquidity to total deposits improved to 54.8% as of June 30, 2023, up from 40.4% at December 31, 2022[277].

Financial Performance - The Company reported financial results for the three months ended March 31, 2023, with annualized results not indicative of future performance [153]. - Net income for Q1 2023 was $11.6 million, a decrease from $12.3 million in Q1 2022, with diluted earnings per share at $0.37 compared to $0.39 in the prior year [177]. - The efficiency ratio for Q1 2023 was 46.2%, compared to 42.4% in Q1 2022, showing an increase of 8.95% [175]. - Noninterest income for Q1 2023 was $1.9 million, an increase of $386,000 from $1.6 million in Q1 2022, primarily due to increased letter of credit fees and FHLB prepayment income [202]. - Noninterest expense was $14.2 million for Q1 2023, an increase of $675,000 from $13.5 million in Q1 2022, mainly due to higher FDIC insurance assessments and derivative collateral fees [203]. - The provision for income taxes was $4.1 million for Q1 2023, a decrease from $4.3 million in Q1 2022, with an effective tax rate of 25.9% for both periods [210]. - Pre-provision net revenue for the three months ended March 31, 2023, was $16.2 million, down from $19.5 million in the previous quarter [267]. Asset and Loan Growth - Total assets increased to $4.6 billion as of March 31, 2023, up from $3.6 billion a year earlier, representing a growth of approximately 27.5% [175]. - Total loans, gross, rose to $3.68 billion, an increase of 23.3% from $2.99 billion in Q1 2022 [175]. - Average interest earning assets increased by $892.9 million, or 26.0%, to $4.32 billion in Q1 2023 from $3.43 billion in Q1 2022 [188]. - Total gross loans reached $3.68 billion at March 31, 2023, an increase of $114.9 million, or 3.2%, from $3.57 billion at December 31, 2022, and an increase of $696.4 million, or 23.3%, from $2.99 billion at March 31, 2022 [212]. - The total real estate mortgage loans amounted to $2.82 billion, with multifamily loans making up $1.32 billion [223]. Interest Income and Expenses - Net interest income for Q1 2023 was $28.57 million, down from $30.18 million in Q1 2022, reflecting a decrease of 5.3% [176]. - Total interest income for Q1 2023 was $52.4 million, a $17.4 million, or 49.8%, increase from $35.0 million in Q1 2022 [190]. - Interest expense on interest bearing liabilities rose by $18.9 million, or 418.9%, to $23.4 million in Q1 2023 compared to $4.5 million in Q1 2022 [194]. - The average rate paid on interest bearing liabilities increased to 3.03% in Q1 2023 from 0.80% in Q1 2022, a rise of 223 basis points [189]. - Interest income on loans for Q1 2023 was $45.3 million, a $13.4 million, or 42.2%, increase from $31.8 million in Q1 2022 [191]. Credit Losses and Allowances - The allowance for credit losses increased to $50.15 million, up from $41.69 million a year ago, reflecting a growth of 20.2% [175]. - The provision for credit losses on loans was $1.5 million for Q1 2023, a decrease of 12.4% from $1.7 million in Q1 2022, with the allowance for credit losses on loans to total loans at 1.36% as of March 31, 2023, down from 1.40% a year earlier [199]. - The allowance for credit losses on loans was $50.1 million as of March 31, 2023, an increase of $2.2 million from $48.0 million at December 31, 2022, reflecting a 4.6% rise [235]. - Nonperforming loans increased to $693,000 as of March 31, 2023, up from $639,000 at December 31, 2022 [229]. - The allowance for credit losses on off-balance sheet credit exposures was $4.3 million at March 31, 2023, compared to $360,000 at December 31, 2022, reflecting a negative provision of ($875,000) for Q1 2023 [200]. Liquidity and Deposits - The Company maintained total on- and off-balance sheet liquidity of $1.92 billion as of March 31, 2023, an increase of $540 million from $1.38 billion at December 31, 2022 [261]. - Total deposits decreased slightly by $5.4 million, or 0.2%, to $3.41 billion as of March 31, 2023, compared to $3.42 billion at December 31, 2022, but increased by $375.5 million, or 12.4%, from $3.04 billion at March 31, 2022 [239]. - Brokered deposits increased by $83.5 million, or 10.8%, to $859.7 million as of March 31, 2023, compared to $776.2 million at December 31, 2022 [241]. - The Company has total contractual obligations of $4.15 billion as of March 31, 2023, with $3.36 billion due within one year [249]. - The Company’s total risk-based capital was $547.8 million with a ratio of 13.25% as of March 31, 2023, exceeding the minimum required ratio of 8.00% [253]. Risk Management - The Company faces risks from interest rate fluctuations, which could impact the value of securities held in its portfolio [154]. - The ALM Committee oversees the management of interest rate risk, ensuring compliance with the risk management infrastructure approved by the board of directors [270]. - In a hypothetical scenario of a 400 basis point increase in interest rates, net interest income would decrease by 18.88% [276]. - Conversely, a 300 basis point decrease in interest rates would result in a 17.87% increase in net interest income [276]. - The Company has various borrowing mechanisms in place for both short-term and long-term liquidity needs [249].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022. 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) Minnesota 26-0113412 (St ...