Financial Performance - Net Interest Income for Q2 2024 was $24,996,000, an increase from $24,631,000 in Q1 2024[138] - Noninterest Income rose to $1,763,000 in Q2 2024, compared to $1,550,000 in Q1 2024[138] - Net Income for Q2 2024 was $8,115,000, up from $7,831,000 in Q1 2024[138] - Basic Earnings Per Share increased to $0.26 in Q2 2024 from $0.25 in Q1 2024[138] - Net income for Q2 2024 was $8.1 million, down from $9.8 million in Q2 2023, with diluted earnings per share decreasing from $0.31 to $0.26[141] - Adjusted operating revenue for the six months ended June 30, 2024, was $52,527,000, compared to $57,803,000 for the same period in 2023, reflecting a decrease of approximately 9.9%[248] Asset and Loan Metrics - Total Assets as of June 30, 2024, were $4,687,035,000, a slight decrease from $4,723,109,000 at the end of Q1 2024[138] - Total Loans, Gross reached $3,800,385,000 in Q2 2024, compared to $3,784,205,000 in Q1 2024[138] - Total assets as of June 30, 2024, were $4.62 billion, up from $4.44 billion a year earlier[148] - Total gross loans increased to $3.80 billion as of June 30, 2024, up $76.1 million or 2.0% from $3.72 billion at December 31, 2023[202] - Real estate mortgage lending constituted 81.1% of the total loan portfolio as of June 30, 2024, indicating a stable composition compared to prior periods[205] Deposits and Liquidity - Deposits remained stable at $3,807,712,000 in Q2 2024, compared to $3,807,225,000 in Q1 2024[138] - Total deposits reached $3.81 billion at June 30, 2024, an increase of $97.8 million from $3.71 billion at December 31, 2023, and a 6.4% increase from $3.58 billion at June 30, 2023[222] - Brokered deposits increased to $1.03 billion as of June 30, 2024, up by $7.8 million from $1.02 billion at December 31, 2023[224] - The Bank's borrowing availability from the Federal Reserve discount window was approximately $1.02 billion as of June 30, 2024, indicating strong liquidity[228] Credit Quality - Nonperforming loans rose to $678,000 in Q2 2024 from $249,000 in Q1 2024, with nonperforming loans to total loans at 0.02%[139] - The allowance for credit losses on loans to total loans ratio remained stable at 1.37%[139] - The total allowance for credit losses was $51.9 million as of June 30, 2024, compared to $51.3 million at March 31, 2024[204] - Loans classified as "watch" totaled $30.4 million at June 30, 2024, compared to $26.5 million at December 31, 2023[212] Interest Income and Expense - Total interest earning assets increased to $4.55 billion in Q2 2024, compared to $4.40 billion in Q2 2023, with net interest income at $25.29 million, down from $26.28 million[145] - Interest income on loans for Q2 2024 was $51.6 million, an increase of $3.5 million from $48.1 million in Q2 2023, due to growth and repricing in the loan portfolio[162] - Interest expense on interest bearing liabilities was $35.9 million for Q2 2024, an increase of $6.8 million from $29.1 million in Q2 2023, primarily due to deposit repricing[164] - The average rate paid on interest bearing liabilities was 4.11% for the six months ended June 30, 2024, compared to 3.32% for the same period in 2023[171] Capital and Equity - Total shareholders' equity increased by $13.7 million, or 3.2%, to $439.2 million as of June 30, 2024, primarily due to retained net income[231] - Tangible book value per share rose to $13.53, a 5.4% increase from $12.84 as of December 31, 2023[232] - The Company maintained a total risk-based capital ratio of 14.16% as of June 30, 2024, exceeding the minimum required ratio of 8.00%[235] Risk Management - The company maintains a risk management program to manage credit exposure within the loan portfolio, including stress testing and portfolio monitoring tools[201] - The company expects no significant changes in the composition of the loan portfolio or in the emphasis on real estate lending in the foreseeable future[205] - The company has entered into hedging transactions, including interest rate swaps and caps, with a total notional amount of $278.0 million as of June 30, 2024[254]
BRIDGEWATER BANC(BWBBP) - 2024 Q2 - Quarterly Report