BRIDGEWATER BANC(BWBBP) - 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 $8.7 million in Q3 2024[5] - Net income for the quarter was$ 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]