Bridgewater Bank(BWB) - 2024 Q2 - Quarterly Results

Liquidity and Capital - Total on- and off-balance sheet liquidity was $2.22 billion as of June 30, 2024, compared to $2.25 billion at March 31, 2024, and $1.96 billion at June 30, 2023[1]. - Total primary liquidity was $529.2 million as of June 30, 2024, down from $569.6 million at March 31, 2024[57]. - Common Equity Tier 1 Risk-based Capital Ratio was 9.41%, an increase from 9.21% in the previous quarter, reflecting stronger capital position[14]. - The Common Equity Tier 1 Risk-Based Capital Ratio was 9.41% at June 30, 2024, up from 9.21% at March 31, 2024[58]. - Tangible common equity as a percentage of tangible assets was 7.90% at June 30, 2024, compared to 7.72% at March 31, 2024[58]. - The company has $15.3 million remaining under its current share repurchase authorization[59]. Earnings and Income - Net Income for June 30, 2024, was $8,115,000, an increase from $7,831,000 in March 31, 2024, and $8,873,000 in September 30, 2023[13]. - Net income for the second quarter of 2024 was $8.1 million, an increase from $7.8 million in the first quarter of 2024, but a decrease from $9.8 million in the second quarter of 2023[28]. - Net income available to Common Shareholders reached $7,101,000, compared to $6,818,000 in the prior quarter, reflecting a growth of 4.15%[14]. - Basic Earnings Per Share (EPS) was $0.26, up from $0.25 in the previous quarter, indicating a 4% increase[14]. - Net interest income for the second quarter of 2024 was $25.0 million, an increase of $365,000 from $24.6 million in the first quarter of 2024, but a decrease of $876,000 from $25.9 million in the second quarter of 2023[31]. - Net interest income after provision for credit losses was $24,396,000 for June 30, 2024, compared to $23,881,000 in March 2024, reflecting an increase of 2.2%[51]. Assets and Loans - Total Assets amounted to $4,687,035,000, a slight decrease from $4,723,109,000 in the previous quarter[14]. - Total Loans, Gross increased to $3,800,385,000 from $3,784,205,000, showing a growth of 0.03%[14]. - Net loans increased to $3,742,222 as of June 30, 2024, compared to $3,726,502 on March 31, 2024, reflecting a growth of 0.42%[63]. - Total gross loans as of June 30, 2024, were $3.80 billion, an increase of $16.2 million, or 1.7% annualized, from $3.78 billion at March 31, 2024, and an increase of $64.2 million, or 1.7%, from $3.74 billion at June 30, 2023[37]. Noninterest Income and Expense - Noninterest Income for June 30, 2024, was $1,763,000, an increase from $1,550,000 in March 31, 2024, and $1,409,000 in December 31, 2023[13]. - Noninterest Expense for June 30, 2024, was $15,539,000, compared to $15,189,000 in March 31, 2024, and $15,740,000 in September 30, 2023[13]. - Total noninterest expense was $15,539,000 for June 30, 2024, compared to $15,189,000 in March 2024, which is an increase of 2.3%[51]. - Noninterest income totaled $1,763,000 for June 30, 2024, up from $1,550,000 in March 2024, indicating a growth of 13.7%[51]. Credit Losses and Asset Quality - The allowance for credit losses to total loans ratio was 1.37% as of June 30, 2024, compared to 1.36% at March 31, 2024[11]. - The company reported an increase in the allowance for credit losses balance to $51,347 as of June 30, 2024, from $50,494 at March 31, 2024[11]. - A provision for credit losses on loans of $600,000 was recorded in the second quarter of 2024, with the allowance for credit losses on loans to total loans at 1.37%[20]. - Nonperforming assets were $678,000, or 0.01% of total assets, as of June 30, 2024, compared to $269,000, or 0.01%, at March 31, 2024[57]. - Nonperforming loans amounted to $678,000, representing 0.02% of total loans as of June 30, 2024[65]. Efficiency and Ratios - Efficiency Ratio for June 30, 2024, was 58.7%, compared to 58.2% in March 31, 2024, and 56.1% in September 30, 2023[13]. - The efficiency ratio improved to 58.7%, compared to 58.2% in the prior quarter, indicating better cost management[14]. - The effective combined federal and state income tax rate for the second quarter of 2024 was 23.6%, a slight increase from 23.5% for the first quarter of 2024 and an increase from 24.3% for the second quarter of 2023[36]. Forward-Looking Statements and Risks - Forward-looking statements indicate potential future performance but are subject to change based on new information or developments[6]. - Forward-looking statements highlight potential risks including interest rate fluctuations and economic conditions that could impact future performance[49].