Bridgewater Bancshares, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period. Total assets increased to $4.69 billion, up from $4.61 billion at the end of 2023, driven by higher cash and cash equivalents, which rose to $191.9 million from $128.6 million. Securities available for sale also saw a significant increase, reaching $664.7 million, compared to $604.1 million at the end of 2023.
Interest income for Q3 2024 was $63.0 million, a 10.7% increase from $56.8 million in Q3 2023. However, net interest income remained relatively stable at $25.6 million, slightly up from $25.4 million in the same quarter last year. Year-to-date net interest income decreased to $75.2 million from $79.9 million in the prior year, reflecting a decline in net interest margin from 2.47% to 2.24%. The increase in interest income was attributed to higher yields on loans and investment securities, despite a rise in interest expenses, which totaled $37.4 million for Q3 2024, up from $31.4 million in Q3 2023.
Net income for Q3 2024 was $8.7 million, down from $9.6 million in Q3 2023, with earnings per share decreasing to $0.27 from $0.30. For the nine months ended September 30, 2024, net income was $24.6 million, compared to $31.1 million in the same period last year. The decline in profitability was influenced by increased noninterest expenses, which rose to $15.8 million in Q3 2024 from $15.2 million in Q3 2023.
In terms of strategic developments, Bridgewater Bancshares announced a merger agreement to acquire First Minnetonka City Bank, which has approximately $241 million in assets. This merger is expected to close in the fourth quarter of 2024, creating a combined entity with approximately $4.9 billion in total assets.
The company’s total deposits increased to $3.75 billion, up from $3.71 billion at the end of 2023, with core deposits growing significantly. However, brokered deposits decreased to $901.0 million from $1.02 billion. The allowance for credit losses on loans was $51.0 million, reflecting a slight increase from $50.5 million at the end of 2023.
Overall, while Bridgewater Bancshares experienced growth in assets and interest income, profitability metrics showed a decline, influenced by rising expenses and interest costs, alongside strategic moves aimed at expanding its market presence through acquisitions.
About Bridgewater Bancshares Inc
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