Disclaimer
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, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, identified by words such as "may", "might", "should", "could", "predict", "potential", "believe", "expect", "continue", "will", "anticipate", "seek", "estimate", "intend", "plan", "projection", "would", "annualized", "target" and "outlook", or the negative version of those words or other comparable words of a future or forward-looking nature.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in forward-looking statements include, among others, the following: interest rate risk, including the effects of recent and anticipated rate increases by the Federal Reserve; fluctuations in the values of the securities held in our securities portfolio or the values of derivative instruments held in our derivatives portfolio, including as a result of changes in interest rates; business and economic conditions generally and in the financial services industry, nationally and within our market area, including rising rates of inflation and possible recession; the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time at Silicon Valley Bank, Signature Bank and First Republic Bank that resulted in the failure of those institutions; loan concentrations in our portfolio; the overall health of the local and national real estate market; our ability to successfully manage credit risk; our ability to maintain an adequate level of allowance for loan losses; new or revised accounting standards, including as a result of the implementation of the Current Expected Credit Loss standard; the concentration of large loans to certain borrowers; the concentration of large deposits from certain clients, who have balances above the current Federal Deposit Insurance Corporation insurance limits; our ability to successfully manage liquidity risk, which may increase our dependence on non-core funding sources such as brokered deposits, and negative impact of our cost of funds; our ability to raise additional capital to implement our business plan; our ability to implement our growth strategy and manage costs effectively; the composition of our senior leadership team and our ability to attract and retain key personnel; talent and labor shortages an high rates of employment turnover; the occurrence of fraudulent activity, breaches or failures of our information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; interruptions involving our information technology and telecommunications systems or third-party servicers; competition in the financial services industry, including from nonbank competitors such as credit unions and "fintech" companies; the effectiveness of our risk management framework; the commencement and outcome of litigation and other legal proceedings and regulatory actions against us; the impact of recent and future legislative and regulatory changes, including in response to the recent failures of Silicon Valley Bank, Signature Bank and First Republic Bank; risks related to climate change and the negatively impact it may have on our customers and their businesses; the imposition of governmental policies impacting the value of products produced by our commercial borrowers; severe weather, natural disasters, wide spread disease or pandemics (including the COVID-19 pandemic), acts of war or terrorism, civil unrest or other adverse external events, including the Russian invasion of Ukraine; potential impairment to the goodwill we recorded in connection with our past acquisition; changes to U.S. or state tax laws, regulations and guidance, including the new 1% excise tax on stock buybacks by publicly traded companies; the success at managing the risks involved in the foregoing items; and any other risks described in the "Risk Factors" sections of reports filed by the Company with the Securities and Exchange Commission.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. The Company undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. Certain of the information contained in this presentation is derived from information provided by industry sources. Although the Company believe that such information is accurate and that the sources from which it has been obtained are reliable, the Company cannot guarantee the accuracy of, and have not independently verified, such information.
Use of Non-GAAP financial measures
In addition to the results presented in accordance with U.S. General Accepted Accounting Principles ("GAAP"), the Company routinely supplements its evaluation with an analysis of certain non-GAAP financial measures. The Company believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors to help them understand the Company's operating performance and trends, and to facilitate comparisons with the performance of peers. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of non-GAAP disclosures to the comparable GAAP measures are provided in this presentation.
2
The Finest Entrepreneurial Bank
Company Overview | Branch-Light Model in Attractive Twin Cities Market | ||||||
Name: | Bridgewater Bancshares, Inc. | ||||||
Twin Cities | |||||||
Headquarters: | St. Louis Park, MN | ||||||
Ticker: | NASDAQ: BWB; BWBBP | ||||||
Assets: | $4.6 Billion | ||||||
Loans: | $3.7 Billion | ||||||
Deposits: | $3.6 Billion | ||||||
Shareholders' Equity: | $409.1 Million | ||||||
Current BWB Branch Future Branch Site in Lake Elmo, MN
Serving a Commercial-Focused Client Base | |||||||
Business and | Loan Balances | Commercial | |||||
Personal Banking | Banking | ||||||
Consumer, | |||||||
• | Commercial & business | 0% | CRE, | • | CRE lending | ||
lending | 30% | • | Acquisition financing | ||||
• | Business / treasury | ||||||
1-4 Family, | • | Construction lending | |||||
management | 11% | ||||||
$3.7B | • | Affordable housing | |||||
• | SBA lending | C&I, | |||||
financing | |||||||
12% | |||||||
• | 1-4 family rentals | Multifamily, | |||||
• | Long-term multifamily | ||||||
C&D, | 35% | ||||||
• | |||||||
Personal banking | financing | ||||||
11% | |||||||
Data as of June 30, 2023
Track Record of Profitability, Growth and Efficiency
- Founded in 2005 by a group of banking industry veterans and local business leaders
- Continuous profitability since the third month of operations
- Proven stability, growth and profitability through various macroeconomic challenges, including the Great Recession, COVID-19 and recent bank failures
- Expertise in commercial real estate with a focus in multifamily lending
- Effective operating model, with one of the lowest efficiency ratios in the industry
- Organizational focus on risk management with a long track record of
superb asset quality | 3 |
Strategic Leadership Team (SLT) with
Broad Skill Sets and Industry Expertise
Jerry Baack | Mary Jayne Crocker | |
Chairman, CEO and President | EVP and Chief Operating Officer | |
• Former regulator and responsible for all aspects of BWB | • Implements unique corporate culture and strategic execution | |
formation | • Joined BWB in 2005 | |
• Lead founder of BWB in 2005 | • 20+ years of financial services experience | |
• 30+ years of banking experience | ||
Jeff Shellberg | Joe Chybowski | ||||
Chief Financial Officer | |||||
EVP and Chief Credit Officer | |||||
• | Holding company board member and oversees strong credit and | • Strategic insights across the organization including capital and | |||
liquidity management | |||||
underwriting culture | |||||
• Joined BWB in 2013 | |||||
• | BWB founding member in 2005 | ||||
• 13 years of banking and capital markets experience | |||||
• | 35+ years of regulatory and banking experience | ||||
Nick Place | Lisa Salazar | ||
Chief Deposit Officer | |||
Chief Lending Officer | |||
• | Client-focused while meeting and responding to market | • Drives accountability and results through initiatives that deliver revenue | |
growth, market share, new business opportunities and market penetration | |||
demands | |||
• Joined BWB in 2018 | |||
• | Joined BWB in 2007 | ||
• 30 years of banking experience | |||
• | 16 years of banking experience | ||
Mark Hokanson | |||
Chief Technology Officer | |||
• | Proactively drives technology and innovative solutions to support | Nearly 24% of BWB's common shares are owned by Board and SLT | |
future growth | members, demonstrating strong alignment with shareholders | ||
• | Joined BWB in 2019 | ||
• 15 years of financial services technology experience
4
A Culture-Driven Organic Growth Story
Truly Unconventional Culture
• Entrepreneurial spirit unlike the culture at a typical |
bank |
• Modern headquarters with an open layout |
promoting team member and client collaboration |
• Commitment to provide clients with quick |
answers, responsive support and simple solutions |
• Continued progress on environmental, social and |
governance initiatives (ESG) |
• Consistent ability to generate robust organic loan |
growth (20% CAGR since 2019) |
Highly Efficient Business Model
• Branch-light model with a commercial real estate |
focus |
• Efficient operating philosophy, including |
networking, banking tools and in-house expertise |
• Relatively low levels of expenses as a percent of |
total assets |
• Efficiency ratio consistently among the lowest in |
the industry |
• Scaling of risk management function to address |
emerging risks and support growth plans |
Consistent Profitability and
Shareholder Return
9% | Diluted EPS CAGR |
since 2018 | |
12% | Tangible book value |
per share1 CAGR |
since 2018
Tangible Book Value per Share1
• Emphasis on local commercial real estate and | |
small business clients | |
• | Focus on aligning loan growth with core deposit |
growth over time | |
• | M&A-related market disruption has resulted in |
• Superb asset quality track record | |
• | Decisive credit culture including measured risk |
selection, consistent underwriting, active credit | |
oversight and deep industry experience | |
• | Proactively assessing credit and repricing risks |
$8.33
$7.22
$10.98 $11.69 $12.15
$9.31
client and banker acquisition opportunities to |
support loan and deposit growth |
given the uncertain economic environment |
2018 | 2019 | 2020 | 2021 | 2022 | 2Q23 |
Robust Balance Sheet GrowthProactive Risk Management
1 | Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation. | 5 |
2 Includes publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion as of June 30, 2023 (Source: S&P Capital IQ)
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Bridgewater Bancshares Inc. published this content on 04 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2023 20:47:38 UTC.