Bridgewater Bank(US:BWB)2024-10-23 20:51Financial Performance - Net income for Q3 2024 was $8.7 million, an increase from $8.1 million in Q2 2024 and a decrease from $9.6 million in Q3 2023[4] - Diluted earnings per share for Q3 2024 were $0.27, compared to $0.26 in Q2 2024 and $0.30 in Q3 2023[4] - Net income available to common shareholders increased to $8,675,000, up from $7,662,000, reflecting a growth of 13.2%[28] - Net income for September 30, 2024, was $8,675,000, representing a 6.9% increase from $8,115,000 in June 30, 2024[38] Asset and Equity Growth - Total assets reached $4.7 billion as of September 30, 2024, with seven branches operating[23] - Total shareholders' equity increased to $452.2 million as of September 30, 2024, up $13.0 million or 3.0% from June 30, 2024, and up $36.2 million or 8.7% from September 30, 2023[20] - Total assets increased to $4,647,925 thousand as of September 30, 2024, compared to $4,464,976 thousand as of the same date in 2023[34] - Total shareholders' equity rose to $452,200 million, compared to $415,960 million, reflecting an increase of approximately 8.67%[31] Deposit and Loan Activity - Core deposits rose by $93.6 million, or 14.4% annualized, while total deposits decreased by $60.3 million from Q2 2024[2] - Total deposits were $3.75 billion in Q3 2024, a decrease of $60.3 million or 1.6% from Q2 2024, but an increase of $71.9 million or 2.0% from Q3 2023[16] - Total gross loans decreased to $3.69 billion in Q3 2024, down $114.8 million or 3.0% from Q2 2024 and $36.7 million or 1.0% from Q3 2023[15] - The loan-to-deposit ratio improved to 98.3% from 99.8% at the end of Q2 2024[2] Interest Income and Expense - Net interest income increased by $603,000, or 2.4%, to $25.6 million from Q2 2024[7] - Interest expense on deposits increased to $34.2 million in Q3 2024, up $2.6 million from Q2 2024 and $7.0 million from Q3 2023[10] - The cost of total deposits was 3.58% in Q3 2024, compared to 3.46% in Q2 2024 and 2.99% in Q3 2023[10] - Total interest income for September 2024 was $51,895, an increase from $48,999 in September 2023, representing a year-over-year growth of 3.6%[32] Noninterest Income and Expense - Noninterest income decreased to $1.5 million in Q3 2024, down $241,000 from Q2 2024 and $204,000 from Q3 2023[13] - Noninterest expense rose to $15.8 million in Q3 2024, an increase of $221,000 from Q2 2024 and $523,000 from Q3 2023[14] - Total noninterest income for September 2024 was $1,522, compared to $1,763 in September 2023, showing a decline of 13.6%[32] - Total noninterest expense for September 2024 was $15,760, an increase from $15,539 in September 2023, reflecting a rise of 1.4%[32] Credit Quality - Nonperforming assets to total assets increased to 0.19% from 0.01% at the end of Q2 2024[3] - Annualized net loan charge-offs as a percentage of average loans were 0.10% for Q3 2024, compared to 0.00% in Q2 2024[3] - Nonperforming loans as of September 30, 2024, totaled $8,378 thousand, representing 0.23% of total loans, compared to $919 thousand or 0.02% as of December 31, 2023[37] - The allowance for credit losses to total loans ratio was 1.38% as of September 30, 2024, consistent with 1.36% as of September 30, 2023[36] Strategic Initiatives - The company announced the strategic acquisition of First Minnetonka City Bank, expected to close in Q4 2024[3] - The Company is in the process of acquiring First Minnetonka City Bank, which may present challenges and impact customer relationships[27] Capital Ratios - The Common Equity Tier 1 Risk-Based Capital Ratio improved to 9.79% at September 30, 2024, compared to 9.41% at June 30, 2024, and 9.07% at September 30, 2023[20] - Tangible Common Equity to Tangible Assets ratio improved to 8.17% from 7.90% in the previous quarter[39] Forward-Looking Statements - Forward-looking statements indicate potential risks including interest rate fluctuations and economic conditions that could affect future performance[25]