PART I FINANCIAL INFORMATION Item 1. Consolidated Financial Statements (unaudited) This section presents Bridgewater Bancshares, Inc.'s unaudited consolidated financial statements, including balance sheets, income, comprehensive income, equity, and cash flows, with explanatory notes Consolidated Balance Sheets The Consolidated Balance Sheets show an increase in total assets and liabilities, primarily driven by growth in loans and deposits, from December 31, 2024, to June 30, 2025 | ASSETS (dollars in thousands) | June 30, 2025 (Unaudited) | December 31, 2024 | | :---------------------------- | :------------------------ | :------------------ | | Cash and Cash Equivalents | $217,495 | $229,760 | | Securities Available for Sale | $743,889 | $768,247 | | Loans, Net | $4,082,405 | $3,809,436 | | Total Assets | $5,296,673 | $5,066,242 | | LIABILITIES (dollars in thousands) | June 30, 2025 (Unaudited) | December 31, 2024 | | :---------------------------- | :------------------------ | :------------------ | | Total Deposits | $4,236,742 | $4,086,767 | | FHLB Advances | $404,500 | $359,500 | | Subordinated Debentures, Net | $108,689 | $79,670 | | Total Liabilities | $4,820,391 | $4,608,307 | | SHAREHOLDERS' EQUITY (dollars in thousands) | June 30, 2025 (Unaudited) | December 31, 2024 | | :---------------------------- | :------------------------ | :------------------ | | Total Shareholders' Equity | $476,282 | $457,935 | | Total Liabilities and Equity | $5,296,673 | $5,066,242 | Consolidated Statements of Income The Consolidated Statements of Income show a significant increase in net interest income and net income for both the three and six months ended June 30, 2025, compared to the same periods in 2024, driven by higher interest income from loans and investment securities | (dollars in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Interest Income | $69,198 | $60,878 | $134,906 | $119,547 | | Total Interest Expense | $36,746 | $35,882 | $72,246 | $69,920 | | NET INTEREST INCOME | $32,452 | $24,996 | $62,660 | $49,627 | | Provision for Credit Losses | $2,000 | $600 | $3,500 | $1,350 | | Total Noninterest Income | $3,627 | $1,763 | $5,706 | $3,313 | | Total Noninterest Expense | $18,941 | $15,539 | $37,077 | $30,728 | | NET INCOME | $11,520 | $8,115 | $21,153 | $15,946 | | NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $10,506 | $7,101 | $19,126 | $13,919 | | Basic Earnings Per Share | $0.38 | $0.26 | $0.70 | $0.51 | | Diluted Earnings Per Share | $0.38 | $0.26 | $0.68 | $0.50 | Consolidated Statements of Comprehensive Income The Consolidated Statements of Comprehensive Income show an increase in net income but a decrease in total other comprehensive income (loss) for the three and six months ended June 30, 2025, compared to 2024, primarily due to unrealized losses on cash flow hedges and reclassification adjustments | (dollars in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income | $11,520 | $8,115 | $21,153 | $15,946 | | Other Comprehensive Income (Loss): | | | | | | Unrealized Gains (Losses) on Available for Sale Securities | (479) | 1,168 | 7,208 | 1,403 | | Unrealized Gains (Losses) on Cash Flow Hedges | (1,455) | 2,036 | (4,497) | 7,748 | | Reclassification Adjustment for Gains Realized in Income | (2,091) | (2,649) | (3,924) | (5,045) | | Income Tax Impact | 1,156 | (159) | 349 | (1,180) | | Total Other Comprehensive Income (Loss), Net of Tax | (2,869) | 396 | (864) | 2,926 | | Comprehensive Income | $8,651 | $8,511 | $20,289 | $18,872 | Consolidated Statements of Shareholders' Equity The Consolidated Statements of Shareholders' Equity detail changes in equity components, including net income, stock-based compensation, stock repurchases, and comprehensive income (loss), showing an overall increase in total shareholders' equity from December 31, 2204, to June 30, 2025 | (dollars in thousands) | Preferred Stock | Common Stock Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | | :--------------------- | :-------------- | :------------------ | :------------------------- | :---------------- | :-------------------------------------------- | :---- | | BALANCE December 31, 2024 | $66,514 | $276 | $95,088 | $309,421 | $(13,364) | $457,935 | | Stock-based Compensation | — | — | 2,039 | — | — | 2,039 | | Comprehensive Income (Loss) | — | — | — | 21,153 | (864) | 20,289 | | Stock Options Exercised | — | — | 395 | — | — | 395 | | Stock Repurchases | — | (1) | (2,190) | — | — | (2,191) | | Restricted Shares Withheld for Taxes | — | — | (158) | — | — | (158) | | Preferred Stock Dividend | — | — | — | (2,027) | — | (2,027) | | BALANCE June 30, 2025 | $66,514 | $275 | $95,174 | $328,547 | $(14,228) | $476,282 | Consolidated Statements of Cash Flows The Consolidated Statements of Cash Flows indicate a net decrease in cash and cash equivalents for the six months ended June 30, 2025, primarily due to significant cash used in investing activities, despite positive cash flows from operating and financing activities | (dollars in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------- | :----------------------------- | :----------------------------- | | Net Cash Provided by Operating Activities | $11,459 | $17,785 | | Net Cash Used in Investing Activities | $(243,566) | $(70,301) | | Net Cash Provided by Financing Activities | $219,842 | $58,047 | | NET CHANGE IN CASH AND CASH EQUIVALENTS | $(12,265) | $5,531 | | Cash and Cash Equivalents Ending | $217,495 | $134,093 | Notes to Consolidated Financial Statements The notes provide detailed explanations and disclosures supporting the consolidated financial statements, covering the Company's business, accounting policies, recent developments, and specific financial instrument details, including earnings per share, securities, loans, derivatives, and regulatory capital [Note 1: Description of the Business and Summary of Significant Accounting Policies
BRIDGEWATER BANC(BWBBP) - 2025 Q2 - Quarterly Report