Bridgewater Bancshares, Inc. · NASDAQ:BWB
Bridgewater Bancshares — Q2 2022 Earnings Presentation
24 slides from Bridgewater Bancshares's earnings presentation, Jul 28, 2022
Slide 1: Earnings Presentation Second Quarter 2022
EARNINGS PRESENTATION SECOND 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: 2Q22 Earnings Highlights
1 Represents a Non - GAAP financial measure. See Appendix for Non - GAAP reconciliation 3 • Gross loan balances up $237.9 million, or 31.9% annualized, from 1Q22 • Investment securities balances up $23.5 million, or 20.5% annualized, from 1Q22 • Deposit balances up $166.3 million, or 22.0% annualize
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 $26,288 $28,673 $29,153 $30,180 $32,530 $1,603 $1,410 $1,288 $1,557 $1,650 $27,891 $30,08
Slide 5: Net Interest Income Momentum Continues
$23,498 $25,433 $26,634 $27,874 $30,237 $1,767 $1,753 $1,057 $563 $263 $1,023 $1,487 $1,462 $1,743 $2,030 $26,288 $28,673 $29,153 $30,180 $32,530 3.52% 3.54% 3.51% 3.60% 3.58% 3.31% 3.22% 3.25% 3.34% 3.34% 2Q21 3Q21 4Q21 1Q22 2Q22 Core Net Interest Margin 1,2 Net Interest Margin 1 5 1 Amounts calcul
Slide 6: Net Interest Income Components Reaching an Inflection Point
$2,630 $2,823 $2,869 $2,961 $3,045 0.54% 0.48% 0.45% 0.43% 0.46% 2Q21 3Q21 4Q21 1Q22 2Q22 Loan Yield (ex. Loan Fees and PPP) 2 6 1 Excludes loan fees and PPP 2 Represents a Non - GAAP financial measure. See Appendix for Non - GAAP reconciliation Dollars in millions Spot Rate 3.05 % Spot Rate 4.19% 1
Slide 7: Estimated Change in NII From Interest Rate Shocks
7 Estimated Change in NII From Immediate Interest Rate Shocks +300 bps +200 bps +100 bps - 100 bps (1.1)% (0.7)% (0.4)% +0.5% • Gradual shift from a mildly asset sensitive position to a more neutral position in recent quarters • Interest rate sensitivity impacted by increased balances of higher beta
Slide 8: Loan Portfolio Repricing
12% 15% 11% 20% 18% 23% $63 $81 $61 $105 $98 $120 Less Than 1 Year 1 to 2 Years 2 to 3 Years 3 to 4 Years 4 to 5 Years 5+ Years 89% 90% 97% 99% 100% $443 $444 $482 $491 $495 At or Above Floor (6/30/22) Up 25 bps Up 50 bps Up 75 bps Up 100+ bps Fixed , 65.2% Variable , 18.4% Adjustable , 16.4% 8 Fixe
Slide 9: Adjusted Efficiency Ratio Consistently in the Low 40% Range
$7,512 $8,309 $7,966 $8,694 $8,977 $980 $942 $939 $1,085 $1,042 $849 $923 $860 $875 $950 $2,136 $2,480 $2,694 $2,854 $2,783 $582 $11,477 $13,236 $12,459 $13,508 $13,752 2Q21 3Q21 4Q21 1Q22 2Q22 1.48% 1.49% 1.43% 1.55% 1.47% 0.02% 0.09% 0.02% 0.01% 0.00% 1.50% 1.58% 1.45% 1.56% 1.47% 42.0% 43.9% 40.8
Slide 10: Robust Loan Growth Continues
Dollars in millions 10 • 2Q22 gross loans grew $237.9 million, or 31.9% annualized • 29.1% annualized YTD loan growth • Expect to meet or exceed mid - to high - teens annualized loan growth target for FY22 • Strong loan pipeline and demand continues • Expect loan growth moderation in 2H22: • More se
Slide 11: A Proven Loan Growth Engine
11 Dollars in millions • Gross loan portfolio grew $238 million from 1Q22 despite payoffs and paydowns of $194 million and a net PPP balance reduction of $7 million in 2Q22 • Total new originations and advances of $393 million in 2Q22 • Loan pipeline remains strong and diversified among various asse
Slide 12: Well-Diversified Loan Portfolio
CRE NOO 27.5% Multifamily 33.7% C&D 11.1% 1 - 4 Family 10.4% CRE OO 4.4% C&I 12.5% Consumer & Other 0.2% PPP 0.2% 12 Dollars in millions Loan Portfolio Composition Loan Mix by Type $3.2 Billion 2Q22 Loan Growth by Type (vs. 1Q22) Well - Diversified Loan Portfolio • 2Q22 loan growth across all commer
Slide 13: Deposit Generation Continues to Support Loan Growth
28% 30% 30% 28% 30% 16% 17% 18% 20% 16% 28% 28% 29% 29% 30% 12% 11% 10% 9% 9% 16% 14% 13% 14% 15% $2,721 $2,854 $2,946 $3,036 $3,202 2Q21 3Q21 4Q21 1Q22 2Q22 13 • 26.9% YoY growth in noninterest - bearing deposits • 24.8% YoY growth in core, non - maturity deposits • Deposit growth reflecting succes
Slide 14: Superb Asset Quality Continues
$7,195 $7,742 $22,641 $18,611 $26,991 1.99% 1.93% 5.45% 4.32% 5.70% 2Q21 3Q21 4Q21 1Q22 2Q22 $(4) $(10) $31 $3 $6 0.00% 0.00% 0.00% 0.00% 0.00% 2Q21 3Q21 4Q21 1Q22 2Q22 $761 $734 $722 $706 $688 0.02% 0.02% 0.02% 0.02% 0.02% 2Q21 3Q21 4Q21 1Q22 2Q22 $37,591 $38,901 $40,020 $41,692 $44,711 1.45% 1.43%
Slide 15: Watch and Classified Assets Remain Primarily Pandemic-Related
C&I , 18.6% CRE NOO Hotels , 9.9% CRE NOO - Senior Housing , 30.6% CRE NOO Retail , 25.5% CRE NOO Other , 13.4% 1 - 4 Family , 2.0% C&I 36.2% CRE NOO Hotels 45.0% CRE NOO Retail 11.0% CRE OO 6.3% C&D 0.4% 1 - 4 Family 1.1% $27 Million 15 Investor Real Estate Secured: CRE Nonowner Occupied (“NOO”) Wa
Slide 16: Solid Capital and Liquidity Position
15.4% 17.5% 16.4% 14.1% 13.5% 25.9% 24.4% 26.2% 25.9% 25.0% $1,305 $1,418 $1,480 $1,444 $1,498 2Q21 3Q21 4Q21 1Q22 2Q22 9.08% 10.70% 10.82% 10.78% 10.33% 9.67% 9.47% 9.36% 9.13% 8.50% 13.49% 15.93% 15.55% 15.02% 13.98% 2Q21 3Q21 4Q21 1Q22 2Q22 16 Dollars in millions On & Off - Balance Sheet Liquidit
Slide 17: Strong Capital and Liquidity: Tangible Book Value Growth
$288 $298 $310 $310 $305 9.10% 8.81% 8.91% 8.60% 7.87% 2Q21 3Q21 4Q21 1Q22 2Q22 Tangible Common Equity to Tangible Assets 1 $4.52 $5.40 $7.22 $8.33 $9.31 $10.98 $11.03 2016 2017 2018 2019 2020 2021 2Q22 17 Strong Capital and Liquidity Tangible Book Value Per Share 1 Growth Tangible Common Equity 1 R
Slide 18: An Award-Winning Workplace Culture
18 An Award - Winning Workplace Culture New Corporate Headquarters Progressive Pay and Benefits Health and Wellness Committee Diversity, Equity and Inclusion Committee Volunteer Paid Time Off Modern, open design with an entrepreneurial spirit tailor - made for team building and collaboration Increas
Slide 19: 2022 Strategic Priorities – Building on Our Momentum
2022 Strategic Priorities – Building on Our Momentum Continue Balance Sheet Growth Trajectory 1 2 3 4 19 Invest in Business Scalability to Support Growth Maintain Highly Efficient Operating Model Recruit, Develop and Retain Top Industry Talent • Generate mid - to high - teens loan growth in 2022 • T
Slide 20: Appendix
APPENDIX 1S BRIDGEWATER BANCSHARES INC.
Slide 21: Reconciliation of Non-GAAP Measures - Annual TCE
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 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 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 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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