Bridgewater Bank(BWB) - 2024 Q4 - Annual Report

Financial Performance - Net Income for 2024 was $32,825,000, down 17.9% from $39,960,000 in 2023[318] - Basic Earnings Per Share decreased to $1.05 in 2024 from $1.29 in 2023, a decline of 18.6%[318] - Adjusted net income for 2024 was $33.4 million, down from $40.0 million in 2023, a decrease of 16.5%[328] - Net income for the year ended December 31, 2024, was $32.8 million, a decrease of 18% from $40.0 million in 2023[328] - Net income available to common shareholders for 2024 was $28,771,000, a decrease of 20% from $35,906,000 in 2023[487] - Comprehensive income for 2024 was $37,707,000, slightly up from $39,656,000 in 2023[489] Assets and Liabilities - Total Assets increased by 9.8% to $5,066,242,000 in 2024 from $4,611,990,000 in 2023[319] - Total Loans, Gross rose by 3.9% to $3,868,514,000 in 2024 compared to $3,724,282,000 in 2023[319] - Total Deposits increased by 10.2% to $4,086,767,000 in 2024 from $3,709,948,000 in 2023[319] - The acquisition of FMCB added approximately $245,000,000 in assets and $225,700,000 in deposits[323] - Total assets reached $4.68 billion in 2024, compared to $4.49 billion in 2023, marking an increase of 4%[333] - Total gross loans rose by $144.2 million, or 3.9%, to $3.87 billion at December 31, 2024, from $3.72 billion at December 31, 2023[390] Interest Income and Expenses - Net Interest Income for 2024 was $102,193,000, a decrease of 2.3% from $105,174,000 in 2023[318] - Total interest income for the year ended December 31, 2024, was $245,898,000, an increase of 10.6% from $222,355,000 in 2023[487] - Interest income on loans for 2024 was $205.6 million, a $13.0 million, or 6.7%, increase from $192.7 million in 2023[345] - Interest expense on interest bearing liabilities was $143.7 million for 2024, an increase of $26.5 million, or 22.6%, from $117.2 million in 2023[347] - Interest expense on deposits rose to $128.8 million in 2024, a $32.8 million, or 34.1%, increase from $96.0 million in 2023[349] Efficiency and Ratios - Return on Average Assets (ROA) for 2024 was 0.70%, down from 0.89% in 2023[318] - The Efficiency Ratio increased to 57.9% in 2024 from 53.0% in 2023[318] - Return on average shareholder's equity (ROE) fell to 7.45% in 2024 from 9.73% in 2023, a decline of 23%[329] - Core Net Interest Margin decreased to 2.19% in 2024 from 2.34% in 2023[442] - Adjusted return on average assets for 2024 is 0.71%, down from 0.89% in 2023, indicating a decrease of 20.2%[444] Credit Quality - Nonperforming Loans decreased to $301,000 in 2024 from $919,000 in 2023[319] - The allowance for credit losses on loans increased by $2.5 million as of December 31, 2023, reflecting the impact of adopting CECL and a provision for credit losses of $2.1 million[365] - Total net charge-offs increased to $1.23 million in 2024 from $202,000 in 2023, reflecting a significant rise in credit losses[404] - Loans classified as "watch/special mention" totaled $46.6 million at December 31, 2024, compared to $26.5 million in 2023, indicating an increase of 75.8%[397] - The total nonperforming assets, including nonaccrual loans, were $301,000 at December 31, 2024, down from $919,000 in 2023[399] Employee and Operational Metrics - The company had 290 full-time equivalent employees at December 31, 2024, an increase from 255 employees at the end of 2023, largely due to the acquisition of FMCB[374] - Noninterest expense totaled $63.3 million for the year ended December 31, 2024, a $4.0 million, or 6.7%, increase from $59.3 million in 2023, mainly due to higher salaries and merger-related expenses[373] - The efficiency ratio was 57.9% for the year ended December 31, 2024, compared to 53.0% in 2023, indicating increased operational costs relative to income[376] Capital and Shareholder Information - Total shareholders' equity increased by $32.4 million, or 7.6%, to $457.9 million in 2024, driven by retained net income and changes in the securities portfolio[418] - Tangible book value per share increased by 5.1% to $13.49 in 2024 from $12.84 in 2023[419] - The company repurchased 446,509 shares of common stock in 2024, representing 1.6% of outstanding shares, at a total cost of $5.2 million[420] - The Company maintained a primary liquidity ratio of 16.3% as of December 31, 2024, compared to 14.3% in the previous year[436] Acquisition Impact - The company completed the acquisition of First Minnetonka City Bank on December 13, 2024, adding approximately $225.7 million in deposits and $117.1 million in loans[499] - Goodwill increased significantly to $11,982 thousand in 2024 from $2,626 thousand in 2023, reflecting the acquisition of First Minnetonka City Bank[485] - The fair value of assets acquired in the recent acquisition was $282.229 million, with liabilities assumed valued at $258.489 million[499]