Bridgewater Bank(US:BWB)2024-08-01 11:06Financial Performance - The Company reported financial results for the three and six months ended June 30, 2024, with annualized results not indicative of future performance[117] - Net income for Q2 2024 was $8.1 million, down from $9.8 million in Q2 2023, representing a decrease of approximately 17.3%[127] - Diluted earnings per share for Q2 2024 were $0.26, compared to $0.31 in Q2 2023, reflecting a decline of 16.1%[127] - Net interest income for Q2 2024 was $24,996, an increase from $24,631 in Q1 2024, showing a growth of 1.5%[125] - Noninterest income for Q2 2024 was $1,763, up from $1,550 in Q1 2024, indicating an increase of 13.7%[125] - Net interest income for Q2 2024 was $25.0 million, a decrease of $876,000 from $25.9 million in Q2 2023[139] - Average interest earning assets increased by $150.9 million, or 3.4%, to $4.55 billion in Q2 2024 compared to $4.40 billion in Q2 2023[141] - Total interest income for Q2 2024 was $61.2 million, up from $55.4 million in Q2 2023, reflecting a $5.8 million increase[142] - Net interest income for the six months ended June 30, 2024 was $49.6 million, a decrease of $4.8 million, or 8.8%, from $54.4 million for the same period in 2023[146] Assets and Liabilities - Total assets as of June 30, 2024, were $4,687,035, a slight decrease from $4,723,109 as of March 31, 2024[125] - Total assets reached $4,646,517 thousand as of June 30, 2024, compared to $4,483,662 thousand a year earlier, marking an increase of approximately 3.6%[131] - The company reported a total interest bearing liabilities of $3,445,199 thousand, up from $3,257,591 thousand in the previous year, reflecting an increase of about 5.8%[131] - Total deposits as of June 30, 2024, were $3.81 billion, an increase of $97.8 million from $3.71 billion at December 31, 2023, and an increase of $229.8 million, or 6.4%, from $3.58 billion at June 30, 2023[192] - Total gross loans reached $3.80 billion as of June 30, 2024, an increase of $76.1 million or 2.0% from December 31, 2023, and $64.2 million or 1.7% from June 30, 2023[172] Credit Quality - The ability to manage credit risk and maintain adequate allowance for credit losses is crucial for the Company's financial health[120] - Nonperforming loans totaled $678, an increase from $249 as of March 31, 2024[127] - The allowance for credit losses on loans to total loans was 1.37% as of June 30, 2024, slightly up from 1.36% as of March 31, 2024[127] - The allowance for credit losses was $(51.9) million as of June 30, 2024, compared to $(51.3) million at March 31, 2024[174] - Total nonperforming assets were $678,000 at June 30, 2024, consistent with the previous period[183] Operational Efficiency - The efficiency ratio for Q2 2024 was 58.7%, compared to 58.2% in Q1 2024, indicating a slight increase in operational costs relative to income[125] - Noninterest expense was $15.5 million for the second quarter of 2024, an increase of $1.3 million from $14.3 million for the same quarter in 2023[160] - The efficiency ratio was 58.7% for the second quarter of 2024, compared to 52.3% for the same quarter in 2023[162] Interest Rate Risk Management - The company manages interest rate risk through various strategies, including interest rate swaps and caps, to mitigate exposure[220] - The company’s management of interest rate risk is overseen by its ALM Committee, which sets limits and management targets for various metrics, including net interest income simulation[218] - In a hypothetical scenario of a 400 basis point increase in interest rates, the company would experience a 4.94% decrease in net interest income[222] - A 300 basis point decrease in interest rates would lead to a 9.98% increase in net interest income, highlighting the company's sensitivity to interest rate changes[222] Growth Strategy - The Company maintains a simple and efficient business model focused on providing responsive support and unconventional experiences to clients, driving profitable growth[122] - The company is focused on expanding its market presence and enhancing its product offerings to drive future growth and profitability[130] - The Company emphasizes the importance of attracting and retaining key personnel for effective growth strategy implementation[120] Regulatory and Market Risks - The Company faces risks including high interest rates, economic conditions, and competition from non-bank entities[120] - The impact of recent and future legislative changes, including those related to bank failures, is a significant consideration for the Company[121] - The Company is subject to inherent uncertainties and risks that could materially affect actual results compared to forward-looking statements[119]