Bridgewater Bancshares, Inc. (BWB) reported net income of $32.8 million for the year ended December 31, 2024, a 17.9% decrease compared to $40.0 million in 2023. Diluted earnings per share were $1.03 in 2024, down from $1.27 in 2023. Return on average assets (ROA) decreased to 0.70% from 0.89%, while return on average shareholders' equity (ROE) fell to 7.45% from 9.73%. The company attributed the decrease in net income to higher interest expense, partially offset by higher earning asset yields.
Significant changes compared to the previous year included a decrease in net interest income to $102.2 million from $105.2 million, primarily due to growth and higher rates paid on deposits. The net interest margin declined by 16 basis points to 2.26%. Noninterest income increased by 13.5% to $7.4 million, driven by gains on securities sales and higher fees. Noninterest expense rose by 6.7% to $63.3 million, mainly due to increased salaries and employee benefits and merger-related expenses. The company's full-time equivalent employee count increased by 14% to 290.
A key strategic development was the acquisition of First Minnetonka City Bank (FMCB) in December 2024. This acquisition added approximately $245.0 million in assets, $225.7 million in deposits, and $117.1 million in loans, along with two branch locations. The acquisition also integrated an investment advisory function. The company's deposit market share in the Twin Cities MSA increased to approximately 1.6%, ranking it ninth overall and fourth among Minnesota-headquartered banks. Total assets reached $5.07 billion as of December 31, 2024, while total gross loans were $3.87 billion and total deposits were $4.09 billion.
Operational developments included strong core deposit growth in 2024, reducing reliance on brokered deposits. The company also launched an online-only consumer account product. The company highlighted its commercial banking expertise, multifamily lending expertise, experienced leadership team, efficient business model, and strong brand as competitive strengths. The company's strategies for future growth include a focus on organic growth in its market area, leveraging its entrepreneurial culture and talent, and considering additional opportunistic acquisitions.
The company identified several risk factors, including credit risk from commercial real estate loan concentrations, liquidity and funding risks, operational and reputational risks, legal and compliance risks, market and interest rate risks, and risks related to the FMCB acquisition. The company stated that its past results are not necessarily indicative of future results and cautioned that actual results may differ materially from forward-looking statements. The company also noted that it does not intend to pay cash dividends on its common stock in the foreseeable future.
About Bridgewater Bancshares Inc
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