Bridgewater Bank(BWB) - 2024 Q4 - Annual Results

Financial Performance - Net income for Q4 2024 was $8.2 million, or$ 0.26 per diluted common share, a decrease from $8.7 million in Q3 2024[4] - Net income available to common shareholders decreased to$ 7,190,000 in Q4 2024, down 6.1% from $7,662,000 in Q3 2024[40] - Net income for Q4 2024 was$ 8,204,000, slightly down from $8,675,000 in Q3 2024, with total net income for the year at$ 32,825,000 compared to $39,960,000 in 2023[52] - The company reported an income before income taxes of$ 10,513,000 for Q4 2024, down from $11,233,000 in Q4 2023, a decrease of 6.4%[45] Deposits and Loans - Core deposits increased by$ 428.2 million, or 63.6% annualized, from Q3 2024; excluding the acquisition of First Minnetonka City Bank (FMCB), core deposits increased by $210.9 million, or 31.3% annualized[3] - Total deposits increased by$ 376.8 million, or 10.2%, in 2024; core deposits increased by $559.4 million, or 22.0%[3] - Gross loans increased by$ 182.9 million, or 19.7% annualized, from Q3 2024; excluding FMCB, gross loans increased by $65.8 million, or 7.1% annualized[3] - Total gross loans reached$ 3.87 billion in Q4 2024, a 5.0% increase from $3.69 billion in Q3 2024 and a 3.9% increase from$ 3.72 billion in Q4 2023[22] - Total deposits were $4.09 billion in Q4 2024, an increase of 9.1% from$ 3.75 billion in Q3 2024 and 10.2% from $3.71 billion in Q4 2023[23] - The loan-to-deposit ratio improved to 94.7%, down from 100.4% at the end of 2023[3] Interest Income and Expenses - Net interest income for Q4 2024 was$ 27.0 million, an increase of $1.4 million from Q3 2024[10] - Interest expense on deposits decreased to$ 32.8 million in Q4 2024, down from $34.2 million in Q3 2024, but up from$ 29.4 million in Q4 2023[15] - Total interest income for Q4 2024 reached $63,324,000, an increase from$ 58,669,000 in Q4 2023, representing an 8.8% year-over-year growth[45] - The cost of total deposits was 3.40% in Q4 2024, a decrease from 3.58% in Q3 2024[40] Asset Quality - Nonperforming assets to total assets ratio was 0.01% for the year ended December 31, 2024, compared to 0.02% at the end of 2023[3] - Nonperforming assets totaled $301,000, or 0.01% of total assets, at December 31, 2024, compared to$ 8.8 million, or 0.19% at September 30, 2024[31] - Nonperforming loans decreased to $301,000 in Q4 2024 from$ 8,378,000 in Q3 2024, indicating improved asset quality[50] Capital and Equity - Total shareholders' equity rose to $457.9 million in Q4 2024, a 1.3% increase from$ 452.2 million in Q3 2024 and a 7.6% increase from $425.5 million in Q4 2023[29] - The Common Equity Tier 1 Risk-Based Capital Ratio was 9.08% at December 31, 2024, down from 9.79% at September 30, 2024[31] - Tangible common equity as a percentage of tangible assets was 7.36% at December 31, 2024, compared to 8.17% at September 30, 2024[31] Operational Efficiency - The efficiency ratio improved to 56.8% in Q4 2024, down from 58.0% in Q3 2024 and 58.8% in Q4 2023[21] - Adjusted Efficiency Ratio improved to 55.2% in Q4 2024 from 57.2% in Q3 2024, reflecting better operational efficiency[52] Future Outlook - The Company will host a conference call on January 30, 2025, to discuss its Q4 2024 financial results[33] - The Company had$ 15.3 million remaining under its current share repurchase authorization as of December 31, 2024[31]