Bridgewater grows earnings while provisioning and charge-offs increase

Bridgewater Bancshares ($BWB) reported quarterly net income of $15 million, compared with $11.6 million a year earlier and $14 million in the preceding quarter. Earnings per share increased to $0.49 from $0.38 year on year. Net interest income rose to $40.7 million from $34.1 million, and net interest margin improved two basis points sequentially to 3.09%.

Core deposits increased by $165.3 million during the quarter and the efficiency ratio improved to 48.8% from 53% in the preceding quarter. Credit costs also increased: the provision was $2.8 million, compared with $550,000 in the preceding quarter and $900,000 a year earlier. The annualized net charge-off rate rose to 0.21% from 0.04% sequentially. Stronger income and expense efficiency therefore need to be assessed alongside a less favorable quarterly credit-cost comparison, rather than in isolation.

Sources:

• Bridgewater — SEC earnings exhibit
• Bridgewater — Business Wire financial results
• Bridgewater — company Form 8-K and earnings exhibit reproduced by StockTitan