Bridgewater Bank(US:BWB)2025-07-23 20:19Financial Performance - Net income for Q2 2025 was $11.5 million, or $0.38 per diluted common share, compared to $9.6 million in Q1 2025 and $8.1 million in Q2 2024[4] - Net income for the quarter was $11,520,000, representing a 19.1% increase compared to $9,633,000 in the prior quarter[37] - Earnings per share (EPS) for Q2 2025 was $0.38, up from $0.31 in Q1 2025, reflecting a growth of 22.6%[42] - For Q2 2025, net income available to common shareholders was $10,506,000, up from $8,620,000 in Q1 2025, representing a 21% increase[51] - Adjusted net income available to common shareholders for the first half of 2025 was $19,376,000, compared to $13,603,000 for the same period in 2024, a 42% increase[51] Revenue and Income Growth - Pre-provision net revenue increased by $2.2 million, or 15.6%, from Q1 2025, with net interest income rising by $2.2 million, or 7.4%[3] - Record noninterest income reached $3.6 million, up $1.5 million, or 74.5%, from Q1 2025[3] - Noninterest income rose to $3.6 million in Q2 2025, an increase of $1.5 million from Q1 2025 and $1.9 million from Q2 2024[17] - Total interest income for Q2 2025 was $69,198,000, an increase of 5.3% from $65,708,000 in Q1 2025[42] - Adjusted operating revenue for Q2 2025 was $35,304,000, compared to $32,286,000 in Q1 2025, reflecting an increase of 6.3%[50] Asset and Loan Growth - Total assets increased to $5,296,673,000 from $5,136,808,000 in the previous quarter, showing growth in the company's balance sheet[37] - Total gross loans reached $4.15 billion in Q2 2025, a $125.7 million increase, or 12.5% annualized, from Q1 2025, and a $345.4 million increase, or 9.1%, from Q2 2024[20] - Total deposits were $4.24 billion in Q2 2025, an increase of $74.3 million, or 7.2% annualized, from Q1 2025, and $429.0 million, or 11.3%, from Q2 2024[22] - Net loans reached $4,082,405 thousand, an increase of 3.1% from $3,959,092 thousand in the previous quarter[41] - Total interest earning assets increased to $5,019,058 thousand for the three months ended June 30, 2025, compared to $4,545,920 thousand for the same period in 2024, reflecting a growth of 10.4%[43] Cost Management and Efficiency - Efficiency ratio improved to 52.6%, down from 55.5% in Q1 2025, indicating better cost management[3] - The efficiency ratio improved to 52.6% in Q2 2025, down from 55.5% in Q1 2025 and 58.7% in Q2 2024[19] - The efficiency ratio improved to 51.5% in Q2 2025 from 53.7% in Q1 2025, indicating enhanced operational efficiency[50] - Total noninterest expense for Q2 2025 was $18,941,000, a slight increase from $18,136,000 in Q1 2025[42] - Adjusted noninterest expense to average assets (annualized) was 1.43% in Q2 2025, up from 1.41% in Q1 2025[50] Credit Quality and Provisioning - Provision for credit losses on loans was $2.0 million in Q2 2025, compared to $1.5 million in Q1 2025 and $600,000 in Q2 2024[15] - Nonperforming assets to total assets ratio was 0.19% at June 30, 2025, down from 0.20% at March 31, 2025, reflecting strong asset quality[3] - Nonperforming Loans decreased slightly to $10,134,000, representing 0.24% of total loans as of June 30, 2025, down from 0.26% in the previous quarter[47] - The allowance for credit losses at the end of June 30, 2025, was $55,765 thousand, with an allowance to total loans ratio of 1.35%[46] - The company reported a slight increase in foreclosed assets, totaling $185 thousand compared to none in the previous quarter[41] Shareholder Returns and Equity - Tangible book value per share increased by 9.2% annualized to $14.21 at June 30, 2025[3] - Total shareholders' equity increased to $476.3 million in Q2 2025, up $7.3 million, or 6.2% annualized, from Q1 2025[25] - The Company repurchased 122,704 shares of common stock at an average price of $12.80 per share, totaling $1.6 million[3] - Total common shareholders' equity increased to $409,768,000 in Q2 2025 from $402,461,000 in Q1 2025, a growth of 0.3%[50] - Adjusted return on average tangible common equity for Q2 2025 was 10.74%, up from 9.68% in Q1 2025[51]