Bridgewater Bank(BWB) - 2025 Q1 - Quarterly Results

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 Q1 2025 reached $9,633,000, up 17.5% compared to$ 8,204,000 in Q4 2024[34] - Earnings per share (EPS) for the quarter was $0.31, compared to$ 0.26 in the previous quarter, reflecting a 19.2% increase[39] - Net income available to common shareholders was $9,050,000 for Q1 2025, up from$ 7,571,000 in Q4 2024, representing a growth of 19.5%[47] Revenue and Income Sources - Pre-provision net revenue increased by $1.5 million, or 11.5%, from Q4 2024, with net interest income rising by$ 3.2 million, or 12.0%[2] - Interest income for Q1 2025 was $65.7 million, an increase of$ 2.4 million from Q4 2024, attributed to higher loan interest and fee income[9] - Noninterest income decreased to $2.1 million in Q1 2025, down from$ 2.5 million in Q4 2024, but up from $1.6 million in Q1 2024[16] - Net operating revenue reached$ 32,286,000 in Q1 2025, representing a 9.1% increase compared to $29,500,000 in Q4 2024[45] Asset and Loan Growth - Gross loans increased by$ 151.6 million, or 15.9% annualized, from Q4 2024, while total deposits rose by $75.7 million, or 7.5% annualized[2] - Total gross loans at March 31, 2025, were$ 4.02 billion, an increase of $151.6 million, or 15.9% annualized, from$ 3.87 billion at December 31, 2024[19] - Total assets reached $5,071,446, an increase from$ 4,788,036 in the previous quarter, marking a growth of 5.9%[40] Efficiency and Cost Management - Efficiency ratio improved to 55.5%, down from 56.8% in Q4 2024, indicating better operational efficiency[2] - The efficiency ratio for the first quarter of 2025 was 55.5%, compared to 56.8% for the fourth quarter of 2024 and 58.2% for the first quarter of 2024[18] - Noninterest expense increased to $18.1 million in Q1 2025, up by$ 1.3 million from Q4 2024, indicating rising operational costs[17] Asset Quality and Credit Losses - Nonperforming assets to total assets ratio was 0.20% at March 31, 2025, compared to 0.01% at December 31, 2024, reflecting a slight increase in asset quality concerns[2] - The allowance for credit losses on loans to total loans was 1.34% at March 31, 2025, compared to 1.35% at December 31, 2024[18] - Nonperforming loans increased to $10,290, compared to$ 301 in the previous quarter, showing a significant rise[43] Capital and 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 Common Equity Tier 1 Risk-Based Capital Ratio was 9.03% at March 31, 2025, compared to 9.08% at December 31, 2024[30] Interest Margin and Yield - Net interest margin for Q1 2025 was 2.51%, a 19 basis point increase from Q4 2024, driven by lower deposit costs and higher loan yields[8] - Core net interest margin improved to 2.37% in Q1 2025, compared to 2.24% in Q4 2024[45] - Core loan yield for Q1 2025 was 5.50%, slightly up from 5.47% in Q4 2024[45]