On July 24, 2024, Bridgewater Bancshares Inc (BWB, Financial) released its 8-K filing for the second quarter of 2024. The company, which offers retail and commercial loan and deposit services within the Minneapolis-St. Paul-Bloomington, MN-WI Metropolitan Statistical Area, reported a net income of $8.1 million and diluted earnings per share (EPS) of $0.26. This performance surpassed the analyst estimates of $0.24 EPS and $25.67 million in revenue.
Performance Overview
Bridgewater Bancshares Inc (BWB, Financial) demonstrated a positive profitability momentum in Q2 2024, with total revenue and net interest income increasing for the first time since Q3 2022. The net income of $8.1 million for Q2 2024 marked an improvement from $7.8 million in Q1 2024, though it was lower than the $9.8 million reported in Q2 2023. The EPS of $0.26 also showed growth from $0.24 in Q1 2024 but was down from $0.31 in Q2 2023.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Net Income | $8.1 million | $7.8 million | $9.8 million |
| Diluted EPS | $0.26 | $0.24 | $0.31 |
| Total Assets | $4.69 billion | $4.72 billion | $4.60 billion |
| Total Deposits | $3.81 billion | $3.81 billion | $3.58 billion |
| Net Interest Margin | 2.24% | 2.24% | 2.40% |
Income Statement Highlights
Net interest income for Q2 2024 was $25.0 million, reflecting an increase from $24.6 million in Q1 2024 but a decrease from $25.9 million in Q2 2023. Interest income rose to $60.9 million, up from $58.7 million in Q1 2024 and $55.0 million in Q2 2023. However, interest expense also increased to $35.9 million, compared to $34.0 million in Q1 2024 and $29.1 million in Q2 2023.
Balance Sheet and Asset Quality
Total assets stood at $4.69 billion as of June 30, 2024, slightly down from $4.72 billion at the end of Q1 2024 but up from $4.60 billion a year ago. Total deposits remained stable at $3.81 billion, showing a modest increase from $3.58 billion in Q2 2023. The loan-to-deposit ratio was 99.8%, indicating a well-balanced loan portfolio.
Liquidity and Capital
Bridgewater Bancshares Inc (BWB, Financial) maintained robust liquidity with total on- and off-balance sheet liquidity of $2.22 billion. The company's tangible book value per share increased to $13.53, up from $13.20 in Q1 2024 and $12.15 in Q2 2023. The company also repurchased 252,707 shares of its common stock during the quarter at an average price of $11.48 per share.
Commentary and Outlook
“Bridgewater saw positive profitability momentum during the second quarter as total revenue and net interest income both increased for the first time since the third quarter of 2022,” said Chairman and Chief Executive Officer, Jerry Baack. “We were pleased to see net interest margin hold steady as loan portfolio repricing increased. Meanwhile, the pace of balance sheet growth year-to-date remained on track with expectations, despite more moderated growth in the second quarter.”
Bridgewater Bancshares Inc (BWB, Financial) continues to focus on executing its business model, serving clients, and driving shareholder value. The company's strong asset quality and consistent growth in tangible book value per share underscore its resilience in a challenging environment.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Bridgewater Bancshares Inc for further details.
