Bridgewater Bancshares, Inc. · NASDAQ:BWB
Bridgewater Bancshares — Q1 2022 Earnings Presentation
24 slides from Bridgewater Bancshares's earnings presentation, Apr 28, 2022
Slide 1: Earnings Presentation First Quarter 2022
EARNINGS PRESENTATION FIRST QUARTER 2022
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 Sec urities Litigation Reform Act of 1995. Forward - looking statements include, without limitation, statements concerning plans, estimates, c
Slide 3: 1Q22 Earnings Highlights
1 Represents a Non - GAAP financial measure. See Appendix for Non - GAAP reconciliation 3 • Gross loan balances up $168.5 million, or 24.2% annualized, from 4Q21 (26.5% ex. PPP) • Cash balances declined $71.6 million from 4Q21 as excess liquidity helped fund $363.5 million of loan originations and a
Slide 4: Strong Profitability and Revenue Generation
PPNR ROA 1 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 $25,395 $26,288 $28,673 $29,153 $30,180 $1,008 $1,603 $1,410 $1,288 $1,557 $26,403 $27,89
Slide 5: Net Interest Income Momentum Continues With Robust Loan Growth
$22,869 $23,498 $25,433 $26,634 $27,874 $1,864 $1,767 $1,753 $1,057 $563 $1,202 $1,023 $1,487 $1,462 $1,743 $25,935 $26,288 $28,673 $29,153 $30,180 3.60% 3.52% 3.54% 3.51% 3.60% 3.34% 3.31% 3.22% 3.25% 3.34% 1Q21 2Q21 3Q21 4Q21 1Q22 Core Net Interest Margin 1,2 Net Interest Margin 1 5 1 Amounts calc
Slide 6: Net Interest Income Components Reaching an Inflection Point as Rates Rise
$2,390 $2,534 $2,655 $2,756 $2,900 4.74% 4.56% 4.65% 4.49% 4.45% 4.50% 4.37% 4.28% 4.20% 4.15% 1Q21 2Q21 3Q21 4Q21 1Q22 $1,836 $1,898 $2,039 $2,008 $2,138 0.81% 0.74% 0.66% 0.64% 0.60% 1Q21 2Q21 3Q21 4Q21 1Q22 Loan Yield (ex. Loan Fees and PPP) 2 6 1 Excludes loan fees and PPP 2 Represents a Non - G
Slide 7: A Mildly Asset Sensitive Position
7 A Mildly Asset Sensitive Position Change in NII From Immediate Interest Rate Shocks +400 bps +300 bps +200 bps +100 bps +4.7% +3.5% +2.1% +0.7% • Conservative interest rate scenario assumptions • Model assumes repricing of noninterest, non - maturity deposits at market rates • A repricing assumpti
Slide 8: Loan Portfolio Repricing
Fixed , 62.6% Variable , 19.8% Adjustable , 17.6% 8 Fixed - Rate Portfolio ($1.9B) Loan Portfolio Repricing Robust total loan growth results in relatively quick turn of the loan portfolio and accelerated repricing: • 23% year - over - year total loan growth • $1.4B of total loan originations and adv
Slide 9: Adjusted Efficiency Ratio Consistently in the Low 40% Range
$7,102 $7,512 $8,309 $7,966 $8,694 $1,055 $980 $942 $939 $1,085 $753 $849 $923 $860 $875 $2,013 $2,136 $2,480 $2,694 $2,854 $582 $10,923 $11,477 $13,236 $12,459 $13,508 1Q21 2Q21 3Q21 4Q21 1Q22 1.49% 1.48% 1.49% 1.43% 1.55% 0.02% 0.02% 0.09% 0.02% 0.01% 1.51% 1.50% 1.58% 1.45% 1.56% 41.2% 42.0% 43.9
Slide 10: Robust Loan Growth Continues
Dollars in millions 10 • 31.5% YoY loan growth, excluding PPP loans • 1Q22 gross loans grew $182.3 million, or 26.5% annualized, excluding PPP loans • Expect annualized loan growth (ex. PPP) in the mid - to high - teen percent range in 2022 • M&A - related market disruption resulting in client and b
Slide 11: A Proven Loan Growth Engine
11 Dollars in millions • Gross loan portfolio grew $169 million from 4Q21 despite payoffs and paydowns of $181 million and a net PPP balance reduction of $14 million in 1Q22 • Total new originations and advances of $364 million in 1Q22 • Loan pipeline remains strong and diversified among various ass
Slide 12: Well-Diversified Loan Portfolio
CRE NOO 28.1% Multifamily 33.9% C&D 10.7% 1 - 4 Family 10.5% CRE OO 3.9% C&I 12.2% PPP 0.4% Consumer & Other 0.3% 12 Dollars in millions Loan Portfolio Composition Loan Mix by Type $3.0 Billion 1Q22 Loan Growth by Type (vs. 4Q21) Well - Diversified Loan Portfolio • 1Q22 loan growth across all portfo
Slide 13: Deposit Growth Continues to Support Loan Originations
$713 $758 $846 $875 $836 $433 $432 $489 $545 $598 $792 $761 $792 $864 $891 $345 $322 $310 $293 $287 $356 $447 $417 $369 $424 $2,639 $2,721 $2,854 $2,946 $3,036 1Q21 2Q21 3Q21 4Q21 1Q22 13 • 17.2% YoY growth in noninterest - bearing deposits • 20.0% YoY growth in total transaction, savings and money
Slide 14: Superb Asset Quality Continues
$6,739 $7,195 $7,742 $22,641 $18,611 1.94% 1.99% 1.93% 5.45% 4.32% 1Q21 2Q21 3Q21 4Q21 1Q22 $(46) $(4) $(10) $31 $3 (0.01)% 0.00% 0.00% 0.00% 0.00% 1Q21 2Q21 3Q21 4Q21 1Q22 $770 $761 $734 $722 $706 0.03% 0.02% 0.02% 0.02% 0.02% 1Q21 2Q21 3Q21 4Q21 1Q22 $35,987 $37,591 $38,901 $40,020 $41,692 1.59% 1
Slide 15: Watch and Classified Assets Remain Primarily Pandemic-Related
C&I , 13.5% CRE NOO Hotels , 33.4% CRE NOO - Senior Housing , 22.7% CRE NOO Retail , 19.0% CRE NOO Other , 9.9% 1 - 4 Family , 1.5% C&I 68.8% CRE NOO Retail 16.1% CRE OO 12.9% C&D 0.7% 1 - 4 Family 1.5% $19 Million 15 Investor Real Estate Secured: CRE Nonowner Occupied (“NOO”) Watch List By Loan Typ
Slide 16: Solid Capital and Liquidity Position
19.2% 15.4% 17.5% 16.4% 14.1% 22.3% 25.9% 24.4% 26.2% 25.9% $1,273 $1,305 $1,418 $1,480 $1,444 1Q21 2Q21 3Q21 4Q21 1Q22 9.11% 9.08% 10.70% 10.82% 10.78% 10.34% 9.67% 9.47% 9.36% 9.13% 14.46% 13.49% 15.93% 15.55% 15.02% 1Q21 2Q21 3Q21 4Q21 1Q22 16 Dollars in millions On & Off - Balance Sheet Liquidit
Slide 17: Strong Capital and Liquidity
$276 $288 $298 $310 $310 8.99% 9.10% 8.81% 8.91% 8.60% 1Q21 2Q21 3Q21 4Q21 1Q22 Tangible Common Equity to Tangible Assets 1 $4.52 $5.40 $7.22 $8.33 $9.31 $10.98 $11.01 2016 2017 2018 2019 2020 2021 1Q22 17 Strong Capital and Liquidity Tangible Book Value Per Share 1 up 12.3% YoY Tangible Common Equi
Slide 18: 2022 Strategic Priorities – Building on Our Momentum
2022 Strategic Priorities – Building on Our Momentum Continue Balance Sheet Growth Trajectory 1 2 3 4 18 Invest in Business Scalability to Support Growth Maintain Highly Efficient Operating Model Develop, Retain and Recruit Top Industry Talent • Generate mid - to high - teens loan growth, excluding
Slide 19: Appendix
APPENDIX 1S BRIDGEWATER BANCSHARES INC.
Slide 20: PPP Loans
Existing Client 57.7% New Client 42.3% 20 New vs. Existing Client PPP Origination Summary as of 3/31/2022 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 21: Reconciliation of Non-GAAP Financial Measures - Annual
21 This presentation includes certain non - GAAP financial measures intended to supplement, not substitute for, comparable GAAP measu res. Reconciliations of these non - GAAP financial measures are provided below. The Company believes these non - GAAP financial measures provide useful informatio n t
Slide 22: Reconciliation of Non-GAAP Financial Measures – Profitability, TCE and TBV
22 This presentation includes certain non - GAAP financial measures intended to supplement, not substitute for, comparable GAAP measu res. Reconciliations of these non - GAAP financial measures are provided below. The Company believes these non - GAAP financial measures provide useful informatio n t
Slide 23: Reconciliation of Non-GAAP Financial Measures – PPNR
23 This presentation includes certain non - GAAP financial measures intended to supplement, not substitute for, comparable GAAP measu res. Reconciliations of these non - GAAP financial measures are provided below. The Company believes these non - GAAP financial measures provide useful informatio n t
Slide 24: Reconciliation of Quarterly Non-GAAP Financial Measures – Core NIM
24 This presentation includes certain non - GAAP financial measures intended to supplement, not substitute for, comparable GAAP measu res. Reconciliations of these non - GAAP financial measures are provided below. The Company believes these non - GAAP financial measures provide useful informatio n t
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