NASDAQ$BWB

Bridgewater Bancshares Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported record net income and diluted earnings per share.

Bridgewater Bancshares, Inc. announced record net income of $14.5 million for Q3 2022, with diluted earnings per share of $0.47. The company's profitability was driven by loan growth and controlled expenses.

  • Diluted earnings per common share were $0.47, compared to $0.41 per common share for the second quarter of 2022.
  • Tangible book value per share increased to $11.33, compared to $11.03 at June 30, 2022.
  • Record pre-provision net revenue (PPNR) reached $21.4 million, compared to $20.4 million for the second quarter of 2022.
  • Adjusted efficiency ratio was 39.4%, compared to 40.0% for the second quarter of 2022.

Headline financials

Total Revenue

$35.5M

Previous: $30.1M+17.9%
EPS (adj)

$0.47

Previous: $0.41+14.6%
Efficiency Ratio

39.8%

No prior period
Return on Average Shareholders' Equity

15.0%

Previous: 13.8%+8.5%
Net Interest Margin

3.5%

No prior period
Core Net Interest Margin

3.4%

No prior period
Adjusted Efficiency Ratio

39.4%

Previous: 41.5%-5.1%
Capital Expenditures

-$1.46M

Previous: -$571K-155.2%
Free Cash Flow

$13.1M

Previous: $10.9M+19.4%
Net Income

$14.5M

Previous: $11.5M+26.1%
Operating Income

$25.7M

Previous: $23.9M+7.6%
Gross Profit

$35.5M

Previous: $30.1M+17.9%
Cash & Equivalents

$75.5M

Previous: $190M-60.2%
Total Assets

$4.13B

Previous: $3.39B+21.8%
Stock-Based Comp

$876K

Previous: $608K+44.1%

Revenue & EPS history

Bridgewater Bank · Revenue · Quarterly

$35.5M

Q3 2022+17.9%vs Q3 2021
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Bridgewater Bank · $3.57B total across 4 segments · Q4 2022

  • Real Estate Mortgage Loans
    $2.76B
  • Commercial Loans
    $435M
  • Construction and Land Development
    $366M
  • Consumer and Other Loans
    $8.13M

Forward guidance

While the current economic environment creates an elevated level of uncertainty, we remain confident in our business model.

Tailwinds

  • Proven ability to grow the balance sheet can support our continued focus on overall revenue growth.
  • Superb credit quality
  • Efficiency ratio among the best in the industry
  • Story that is poised to continue driving sustained shareholder value.
  • Impressive profitability was driven by robust loan growth.

Headwinds

  • The current economic environment creates an elevated level of uncertainty
  • Rise in interest rates drives deposit costs higher
  • Creates near-term net interest margin pressure
  • Deposit portfolio in the higher interest rate environment.
  • Deposits could experience fluctuations in future periods.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+1.1%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+1.2%

Avg return

30 days after

63%

24 / 38 earnings

Positive

+9.3%

Q1 2021

Best reaction

-4.5%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.4%-0.2%+0.5%
Q4 2025+2.0%+6.3%-1.0%
Q3 2025-3.3%-2.2%-2.9%
Q2 2025-1.3%-0.4%+4.3%
Q1 2025+2.3%+12.9%+8.8%
Q4 2024+4.1%+0.9%+6.1%
Q3 2024-0.9%-0.7%+0.0%
Q2 2024+3.2%-0.8%-2.0%
Q1 2024-1.6%-1.8%-2.5%
Q4 2023+2.2%-0.9%-11.7%
Q3 2023+6.0%+5.5%+16.3%
Q2 2023-1.1%-1.3%-6.5%
Q1 2023+2.1%+0.0%-5.3%
Q4 2022-3.8%-10.8%-15.0%
Q3 2022+5.1%+7.2%+8.1%
Q2 2022+2.0%+0.2%+1.7%
Q1 2022-0.8%-0.8%+0.6%
Q4 2021+2.2%-0.6%-1.9%
Q3 2021+2.3%+5.3%+0.5%
Q2 2021-0.6%-1.1%+2.4%
Q1 2021+9.3%+5.8%+12.2%
Q4 2020-0.8%+2.1%+8.5%
Q3 2020-1.9%-1.1%+6.0%
Q2 2020-1.1%-0.3%+6.1%
Q1 2020-4.5%-9.1%-0.5%
Q4 2019+1.3%+1.4%+4.0%
Q3 2019-0.2%+1.7%+3.7%
Q2 2019+2.2%+2.2%-4.2%
Q1 2019+0.5%+1.1%+4.1%
Q4 2016+2.5%+0.6%-6.2%
Q4 2018+6.7%+6.1%+8.7%
Q3 2017+2.7%+2.7%+0.6%
Q3 2018+2.7%+2.7%+0.6%
Q2 2017-0.2%-1.0%+5.5%
Q2 2018+1.8%+0.2%+0.3%
Q1 2017+0.2%+0.2%-1.6%
Q1 2018+0.2%+0.2%-1.6%
Q4 2017+0.2%+1.4%-0.5%

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