Bridgewater Bancshares, Inc. · NASDAQ:BWB
Bridgewater Bancshares — Q3 2021 Earnings Presentation
35 slides from Bridgewater Bancshares's earnings presentation, Oct 28, 2021
Slide 1: Earnings Presentation Third Quarter 2021
KA BRIDGEWATER BANCSHARES, INC. EARNINGS PRESENTATION THIRD QUARTER 202! aa
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculat
Slide 3: 3Q21 Earnings Highlights
1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation 3 $0.40 Reported • Gross loan balances up $117.8 million, or 18.0% annualized from 2Q21 (25.9% ex. PPP) • Deposit balances up $133.3 million, or 19.4% annualized from 2Q21 • Cash build of $97.3 million, primarily due
Slide 4: Strong Profitability and Revenue Generation
PPNR ROA1 4 Strong Profitability and Revenue Generation Strong PPNR Trends 1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation Dollars in thousands Consistent Revenue Growth $21,679 $24,841 $25,395 $26,288 $28,673 $1,157 $986 $1,008 $1,603 $1,410 $22,836 $25,827 $26,4
Slide 5: Net Interest Income and Net Interest Margin
$19,308 $21,230 $22,869 $23,498 $25,433 $1,173 $2,097 $1,864 $1,767 $1,753 $1,198 $1,514 $1,202 $1,023 $1,487 $21,679 $24,841 $25,935 $26,288 $28,673 3.28% 3.61% 3.60% 3.52% 3.54% 3.14% 3.29% 3.34% 3.31% 3.22% 3Q20 4Q20 1Q21 2Q21 3Q21 Core Net Interest Margin1,2 Net Interest Margin1 5 1 Amounts calc
Slide 6: Net Interest Income Components
$2,207 $2,301 $2,390 $2,534 $2,655 4.73% 4.89% 4.74% 4.56% 4.65% 4.69% 4.59% 4.50% 4.37% 4.28% 3Q20 4Q20 1Q21 2Q21 3Q21 $1,597 $1,687 $1,836 $1,898 $2,039 1.21% 0.96% 0.81% 0.74% 0.66% 3Q20 4Q20 1Q21 2Q21 3Q21 Loan Yield (ex. Loan Fees and PPP)2 6 1 Excludes loan fees and PPP 2 Represents a Non-GAAP
Slide 7: Noninterest Expense and Efficiency Ratio
$6,550 $6,216 $7,102 $7,512 $8,309 $894 $979 $1,055 $980 $942 $652 $690 $753 $849 $923 $1,576 $1,760 $2,013 $2,136 $2,480 $5,613 $582 $9,672 $15,258 $10,923 $11,477 $13,236 3Q20 4Q20 1Q21 2Q21 3Q21 1.40% 1.34% 1.49% 1.48% 1.49% 0.02% 0.82% 0.02% 0.02% 0.09% 1.42% 2.16% 1.51% 1.50% 1.58% 42.3% 59.0%
Slide 8: Robust Loan Growth Continues
Dollars in millions 8 • 27.9% YoY loan growth, excluding PPP loans • 3Q21 gross loans grew $162.7 million, or 25.9% annualized, excluding PPP loans • Expect near-term annualized loan growth (ex. PPP) in the high teen percent range • Strong brand and service model in the Twin Cities market • M&A-rela
Slide 9: A Proven Loan Growth Engine
9 Dollars in millions • Despite payoffs and paydowns of $164 million and a net PPP balance reduction of $45 million in 3Q21, gross loan portfolio grew $118 million from 2Q21 • Loan pipeline remains strong and diversified among various asset classes A Proven Loan Growth Engine Down 8% compared to 2Q2
Slide 10: Well-Diversified Loan Portfolio
CRE NOO 29.0% Multifamily 31.9% C&D 9.5% 1-4 Family 10.7% CRE OO 3.8% C&I 12.9% PPP 2.0% Consumer & Other 0.2% 10 Dollars in millions Loan Portfolio Composition Loan Mix by Type $2.71 Billion 3Q21 Loan Growth by Type (vs. 2Q21) Well-Diversified Loan Portfolio • 3Q21 loan growth across all commercial
Slide 11: Deposit Growth
$686 $672 $713 $758 $846 $322 $366 $433 $432 $489 $498 $658 $792 $761 $792 $364 $354 $345 $322 $310 $403 $452 $356 $447 $417 $2,273 $2,502 $2,639 $2,721 $2,854 3Q20 4Q20 1Q21 2Q21 3Q21 11 • 23.4% YoY growth in noninterest- bearing deposits • Robust deposit inflows reflect both successful new client
Slide 12: Superb Asset Quality Despite COVID Impact
$16,074 $15,164 $6,739 $7,195 $7,742 4.95% 4.54% 1.94% 1.99% 1.93% 3Q20 4Q20 1Q21 2Q21 3Q21 $2 $440 $(46) $(4) $(10) 0.00% 0.08% (0.01)% 0.00% 0.00% 3Q20 4Q20 1Q21 2Q21 3Q21 $433 $775 $770 $761 $734 0.02% 0.03% 0.03% 0.02% 0.02% 3Q20 4Q20 1Q21 2Q21 3Q21 $31,381 $34,841 $35,987 $37,591 $38,901 1.51%
Slide 13: Classified Assets Remain at Modest Levels
C&I, 37.2% CRE NOO Hotels, 23.3% CRE NOO - Senior Housing, 15.8% CRE NOO Retail, 13.4% CRE OO, 2.4% CRE NOO Other, 6.9% 1-4 Family, 1.0% C&I 15.5% CRE NOO Retail 46.4% CRE NOO Office 8.1% CRE OO 10.9% C&D 1.7% 1-4 Family 17.4% $8 Million 13 Investor Real Estate Secured: CRE Nonowner Occupied (“NOO”)
Slide 14: Solid Capital and Liquidity Position
16.8% 18.4% 19.2% 15.4% 17.5% 15.5% 19.8% 22.3% 25.9% 24.4% $894 $1,121 $1,273 $1,305 $1,418 3Q20 4Q20 1Q21 2Q21 3Q21 9.83% 9.28% 9.11% 9.08% 10.70% 11.03% 10.35% 10.34% 9.67% 9.47% 15.45% 14.58% 14.46% 13.49% 15.93% 3Q20 4Q20 1Q21 2Q21 3Q21 14 Dollars in millions On & Off-Balance Sheet Liquidity as
Slide 15: Strong Capital and Liquidity
$262 $262 $276 $288 $298 9.46% 8.96% 8.99% 9.10% 8.81% 3Q20 4Q20 1Q21 2Q21 3Q21 Tangible Common Equity to Tangible Assets1 $4.53 $5.40 $7.22 $8.33 $9.31 $10.62 2016 2017 2018 2019 2020 3Q21 15 Strong Capital and Liquidity Tangible Book Value Per Share1 Tangible Common Equity 1 Represents a Non-GAAP
Slide 16: Investor Highlights
Investor Highlights Investor Highlights Pre-eminent real estate bank in the Twin Cities market with a focus on multifamily lending Operational strategy focused on generating consistently profitable organic growth Superior profitability driven by a highly efficient business model Very experienced and
Slide 17: Appendix
| APPENDIX BRIDGEWATER BANCSHARES, INC.
Slide 18: Reconciliation of Non-GAAP Financial Measures - Annual
18 This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of these non-GAAP financial measures are provided below. The Company believes these non-GAAP financial measures provide useful information to both m
Slide 19: Reconciliation – Profitability, TCE and TBV
19 This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of these non-GAAP financial measures are provided below. The Company believes these non-GAAP financial measures provide useful information to both m
Slide 20: Reconciliation – PPNR
20 This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of these non-GAAP financial measures are provided below. The Company believes these non-GAAP financial measures provide useful information to both m
Slide 21: Reconciliation – Core NIM
21 This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of these non-GAAP financial measures are provided below. The Company believes these non-GAAP financial measures provide useful information to both m
Slide 22: PPP Origination and Outstanding Summary
Existing Client 57.7% New Client 42.3% 22 New vs. Existing Client PPP Origination Summary as of 9/30/2021 Number of Loans Principal Balance Origination Fees Round 1 1,200 $ 181,600 $ 5,706 Round 2 651 78,386 3,544 Total 1,851 $ 259,986 $ 9,250 Dollars in thousands PPP Outstanding Summary As of and f
Slide 23: Loan Portfolio – Repricing Composition
23 Dollars in thousands Loan Portfolio – Repricing Composition Variable/Adjustable Loans vs. Rate Floors Fixed/Adjustable Years to Maturity/Repricing Loan Portfolio Repricing Fixed, 59.4% Variable, 22.1% Adjustable, 18.5% 80% 72% 64% 78% 70% 85% 20% 28% 36% 22% 30% 15% $321,274 $207,347 $297,471 $28
Slide 24: Deposit Repricing Opportunities
24 1 Rate indicated assumes renewal into like term at market rates as of October 12, 2021 Dollars in thousands Time Deposit Maturities Time Deposit Repricing Deposit Repricing Opportunities $146 million in time deposits maturing over the next five quarters at a blended cost of 1.46% $23,450 $17,566
Slide 25: Investor Real Estate Secured – CRE Nonowner Occupied
Dollars in thousands 25 Investor Real Estate Secured: CRE Nonowner Occupied (“NOO”) Portfolio Characteristics – CRE NOO Loan Balance Outstanding $786,271 % of Total Loans, Gross 29.0% Number of Loans 375 Average Loan Size $2,097 Loan-to-Value (Weighted Average) 61.1% 5 Year Net Charge-Offs (%) 0.01%
Slide 26: CRE NOO Office
Dollars in thousands 26 Portfolio Characteristics – CRE NOO Office Loan Balance Outstanding $209,329 % of Total Loans, Gross 7.7% Number of Loans 98 Average Loan Size $2,136 Loan-to-Value (Weighted Average) 63.0% Investor Real Estate Secured: CRE NOO Retail 0-50k Sq Ft, 42.8% 50k - 125k Sq Ft, 20.5%
Slide 27: CRE NOO Retail
Dollars in thousands 27 Portfolio Characteristics – CRE NOO Retail Loan Balance Outstanding $168,380 % of Total Loans, Gross 6.2% Number of Loans 99 Average Loan Size $1,701 Loan-to-Value (Weighted Average) 62.2% Investor Real Estate Secured: CRE NOO Retail 0-25k Sq Ft, 47.8% 25k - 75k Sq Ft, 28.9%
Slide 28: CRE NOO Industrial
Dollars in thousands 28 Portfolio Characteristics – CRE NOO Industrial Loan Balance Outstanding $208,981 % of Total Loans, Gross 7.7% Number of Loans 78 Average Loan Size $2,679 Loan-to-Value (Weighted Average) 59.0% Investor Real Estate Secured: CRE NOO Retail 0-50k Sq Ft, 21.0% 50k - 125k Sq Ft, 3
Slide 29: CRE NOO Hotels
29 1 Based on state of primary real property collateral if available, otherwise borrower address is used Dollars in thousands Investor Real Estate Secured: CRE NOO Hotels Portfolio Characteristics – CRE NOO Hotels Loan Balance Outstanding $20,138 % of Total Loans, Gross 0.7% Number of Loans 6 Averag
Slide 30: CRE NOO Restaurants
30 Portfolio Characteristics – CRE NOO Restaurants Loan Balance Outstanding $25,433 % of Total Loans, Gross 0.9% Number of Loans 18 Average Loan Size $1,413 Loan-to-Value (Weighted Average) 61.7% Investor Real Estate Secured: CRE NOO Restaurant Full-Service 53.1% Quick-Service 26.8% Tap Rooms 9.3% C
Slide 31: Multifamily Portfolio Characteristics
5-19 Units 14.6% 20-49 Units 26.5% 50-99 Units 30.4% 100+ Units 28.5% $865 Million 31 Portfolio Characteristics – Multifamily Loan Balance Outstanding $865,172 % of Total Loans, Gross 31.9% Number of Loans 353 Average Loan Size $2,451 Loan-to-Value (Weighted Average) 63.8% 5 Year Net Charge-Offs (%)
Slide 32: Construction and Development
Twin Cities MSA 98.0% MN 1.1% Other States 0.9% Residential 23.6% Multifamily 39.6% CRE Other 12.3% Land 24.5% $257 Million 32 By Property Type By Geography1 Land Portfolio Composition Investor Real Estate Secured: CRE NOO Restaurant Portfolio Characteristics – C&D Loan Balance Outstanding $257,167
Slide 33: CRE Owner Occupied
33 Investor Real Estate Secured: CRE Nonowner Occupied (“NOO”) Portfolio Characteristics – CRE OO Loan Balance Outstanding $101,834 % of Total Loans, Gross 3.8% Number of Loans 150 Average Loan Size $679 Loan-to-Value (Weighted Average) 60.2% 5 Year Net Charge-Offs (%) (0.01)% Office 33.8% Retail 10
Slide 34: Commercial and Industrial
Real Estate and Rental and Leasing, 38.2% Construction, 15.1% Manufacturing, 14.8% Finance & Insurance, 11.2% Other, 6.4% Professional Services, 5.1% Wholesale/Retail Trade, 4.2% Accomodation & Food Services, 5.0% $350 Million 34 1 Distribution by North American Industry Classification System (NAICS
Slide 35: Bridgewater Bancshares, Inc.
BRIDGEWATER BANCSHARES, INC.
Bridgewater Bancshares — Q3 2021 Earnings Presentation on 6ix