Bridgewater Bancshares Inc
For the period ended Jun 30, 2025. Filed Jul 31, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 31, 2025
BWB$20.28+0.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0001558370-25-006048
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0001558370-25-009841
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 131 previous paragraphs and 149 current paragraphs.
72 unchanged; 52 reworded; 17 added; 2 removed; 5 previous and 8 current paragraphs rearranged.
Tables are not compared: 67 previous and 71 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
On June 24, 2025, the Company entered into a Subordinated Note Purchase Agreement with certain institutional accredited investors and qualified institutional buyers pursuant to which the Company sold and issued $80.0 million in aggregate principal amount of its 7.625% Fixed-to-Floating Rate Subordinated Notes due 2035. The Notes were issued by the Company to such purchasers at a price equal to 100% of their face amount. The Company used the net proceeds it received from the sale of the Notes to redeem $50 million of outstanding 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030 and for general corporate purposes.
Current report
On July 4, 2025, the President signed H.R. 1, the “One Big Beautiful Bill Act,” into law. The legislation includes several changes to federal tax law that generally allow for more favorable deductibility of certain business expenses beginning in 2025, including the restoration of immediate expensing of domestic research and development
Current report
expenditures, reinstatement of 100% bonus depreciation, and more favorable rules for determining the limitation on business interest expense. The Company is currently evaluating the impact on future periods.
Current report
Second Quarter of 2025 Compared to Second Quarter of 2024
Current report
*Interest Expense.*Interest expense on interest bearing liabilities was $36.7 million for the second quarter of 2025, an increase of $864,000, from $35.9 million for the second quarter of 2024. The increase was primarily due to growth of the deposit portfolio and increased utilization of FHLB advances, offset partially by a decrease in utilization of federal funds purchased.
Current report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Current report
Net interest income was $62.7 million for the six months ended June 30, 2025, an increase of $13.0 million, or 26.3%, compared to $49.7 million for the six months ended June 30, 2024. The increase in net interest income was primarily due to growth and higher yields in the loan portfolio, offset partially by higher interest bearing liability balances.
Current report
Average interest earning assets were $4.97 billion for the six months ended June 30, 2025, an increase of $454.5 million, or 10.1%, compared to $4.52 billion for the six months ended June 30, 2024. This increase in average interest earning assets was primarily due to organic growth in the loan portfolio, higher average cash balances, and the FMCB acquisition. Average interest bearing liabilities were $3.81 billion for the six months ended June 30, 2025, an increase of $388.0 million, or 11.3%, compared to $3.42 billion for six months ended June 30, 2024. The increase in average interest bearing liabilities was primarily due to an increase in savings and money market deposits and interest bearing transaction deposits, offset partially by a decrease in brokered deposits.
Current report
Average interest earning assets produced a tax-equivalent yield of 5.49% for the six months ended June 30, 2025, compared to 5.35% for the six months ended June 30, 2024. The average rate paid on interest bearing liabilities was 3.82% for the six months ended June 30, 2025, compared to 4.11% for the six months ended June 30, 2024.
Current report
*Interest Income.*Total interest income on a tax-equivalent basis was $135.5 million for the six months ended June 30, 2025, compared to $120.2 million for the six months ended June 30, 2024. The $15.3 million increase in total interest income on a tax-equivalent basis was primarily due to growth in the loan and investment securities portfolios and higher earning asset yields.
Current report
Interest income on loans, on a tax-equivalent basis, for the six months ended June 30, 2025 was $112.1 million, compared to $101.5 million for the six months ended June 30, 2024. The $10.7 million increase was primarily due to growth and repricing of the loan portfolio in the higher interest rate environment.
Current report
Interest expense on deposits increased to $64.6 million for the six months ended June 30, 2025, compared to $61.8 million for the six months ended June 30, 2024. The $2.8 million increase in interest expense on deposits was primarily due to higher balances in savings and money market deposits and interest bearing transaction deposits, offset partially by lower rates paid on deposits.
Current report
Interest expense on borrowings was $7.6 million for the six months ended June 30, 2025, compared to $8.1 million for the six months ended June 30, 2024. This decrease was primarily due to lower average balances of federal funds purchased, offset partially by higher average balances of FHLB advances.
Current report
Noninterest income was $3.6 million for the second quarter of 2025, an increase of $1.9 million from $1.8 million for the second quarter of 2024. The increase was primarily due to higher swap fees, FHLB prepayment income, investment advisory fees, and gains on sales of securities. Noninterest income was $5.7 million for the six months ended June 30, 2025, an increase of $2.4 million from $3.3 million for the six months ended June 30, 2024. The increase was primarily due to higher swap fees, FHLB prepayment income, and investment advisory fees.
Current report
Second Quarter of 2025 Compared to Second Quarter of 2024
Current report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Current report
Noninterest expense was $37.1 million for the six months ended June 30, 2025, an increase of $6.3 million, from $30.7 million for the six months ended June 30, 2024. The increase was primarily attributable to increases in salaries and employee benefits, increased operating costs related to the acquisition of FMCB, and merger related expenses.
Removed paragraphs (2)
Previous report
Noninterest income was $2.1 million for the first quarter of 2025, an increase of $529,000 from $1.6 million for the first quarter of 2024. The increase was primarily due to higher customer service fees, letter of credit fees and investment advisory fees, offset partially by lower gains on sales of securities and other income.
Previous report
On July 23, 2024, the Company’s Board of Directors extendedthe expiration date of the Company’s previously announced stock repurchase program (the “2022 Stock Repurchase Program”) from August 16, 2024 to August 20, 2025. As of March 31, 2025, the remaining amount that could be used to repurchase shares under the stock repurchase program was $14.7 million. The Company remains committed to maintaining strong capital levels while enhancing shareholder value as it strategically executes its stock repurchase program based on various factors including valuation, capital levels and other uses of capital. The 2022 Stock Repurchase Program does not obligate the Company to repurchase any shares of its common stock, and other than repurchases that have been completed to date, there is no assurance that the Company will do so. The number, timing and price of shares repurchased will depend on a number of factors, including business and market conditions, regulatory requirements, availability of funds, and other factors, including opportunities to deploy the Company’s capital. The Company may, in its discretion, begin, suspend, or terminate repurchases at any time prior to the program’s expiration, without any prior notice.
Reworded paragraphs (52)
Previous wording
The following discussion explains the Company’s financial condition and results of operations as of and for the three months ended March 31, 2025. Annualized results for these interim periods may not be indicative of results for the full year or future periods. The following discussion and analysis should be read in conjunction with the consolidated financial statements and related notes presented elsewhere in this report and the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission, or the SEC, on March 6, 2025.
Current wording
The following discussion explains the Company’s financial condition and results of operations as of and for the three and six months ended June 30, 2025. Annualized results for these interim periods may not be indicative of results for the full year or future periods. The following discussion and analysis should be read in conjunction with the consolidated financial statements and related notes presented elsewhere in this report and the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission, or the SEC, on March 6, 2025.
Previous wording
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this report. In addition, past results of operations are not necessarily indicative of future results. Any forward-looking statement made by us in this report is based only on information currently available to us and speaks only as of the date on which it is made. The Company undertakes 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.
Current wording
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this report. In addition, past results of operations are not necessarily indicative of future results. Any forward-looking statement made by us in this report is based only on information currently
Previous wording
dividends earned on investment securities and service charges. The Company’s principal expenses are interest paid on deposit accounts and borrowings, employee compensation and other overhead expenses. The Company’s simple, efficient business model of providing responsive support and unconventional experiences to clients continues to be the underlying principle that drives the Company’s profitable growth.
Current wording
The Company is a financial holding company headquartered in St. Louis Park, Minnesota. The principal sources of funds for loans and investments are transaction, savings, time, and other deposits, and short-term and long-term borrowings. The Company’s principal sources of income are interest and fees collected on loans, interest and dividends earned on investment securities and service charges. The Company’s principal expenses are interest paid on deposit accounts and borrowings, employee compensation and other overhead expenses. The Company’s simple, efficient business model of providing responsive support and unconventional experiences to clients continues to be the underlying principle that drives the Company’s profitable growth.
Previous wording
acquisition of FMCB in an all-cash transaction. On the closing date, FMCB merged with and into Bridgewater Bank, with Bridgewater Bank as the surviving entity. The acquisition of FMCB aligns with and accelerates the Company’s strategic priorities, including its focus on continued growth within the Twin Cities market. The acquisition of FMCB added approximately $245.0 million of assets, $225.7 million of deposits, $117.1 million of loans and leases as of December 31, 2024, and two branch locations in Minnetonka, Minnesota. The acquisition also added an investment advisory business that offers nondeposit investment products through a third party arrangement. During the three months ended March 31, 2025, the Company incurred merger-related expenses of $565,000 related to the acquisition. The acquisition may impact comparability between periods.
Current wording
acquisition of FMCB in an all-cash transaction. On the closing date, FMCB merged with and into Bridgewater Bank, with Bridgewater Bank as the surviving entity. The acquisition of FMCB aligns with and accelerates the Company’s strategic priorities, including its focus on continued growth within the Twin Cities market. The acquisition of FMCB added approximately $245.0 million of assets, $225.7 million of deposits, $117.1 million of loans and leases as of December 31, 2024, and two branch locations in Minnetonka, Minnesota. The acquisition also added an investment advisory business that offers nondeposit investment products through a third party arrangement. During the three and six months ended June 30, 2025, the Company incurred merger-related expenses of $540,000 and $1.1 million, respectively, related to the acquisition. The acquisition may impact comparability between periods.
Previous wording
Net income was $9.6 million for the first quarter of 2025, compared to net income of $7.8 million for the first quarter of 2024. Earnings per diluted common share for the first quarter of 2025 were $0.31, compared to $0.24 per diluted common share for the first quarter of 2024. Adjusted net income, a non-GAAP financial measure, was $10.1 million for the first quarter of 2025, compared to $7.8 million for the first quarter of 2024. Adjusted earnings per diluted common share, a non-GAAP financial measure, for the first quarter of 2025 were $0.32, compared to $0.24 per diluted common share for the first quarter of 2024.
Current wording
Net income was $11.5 million for the second quarter of 2025, compared to net income of $8.1 million for the second quarter of 2024. Earnings per diluted common share for the second quarter of 2025 were $0.38, compared to $0.26 per diluted common share for the second quarter of 2024. Adjusted net income, a non-GAAP financial measure, was $11.3 million for the second quarter of 2025, compared to $7.9 million for the second quarter of 2024. Adjusted earnings per diluted common share, a non-GAAP financial measure, for the second quarter of 2025 were $0.37, compared to $0.25 per diluted common share for the second quarter of 2024.
Previous wording
The following table presents, for the three months ended March 31, 2025 and 2024, the average balances of each principal category of assets, liabilities and shareholders’ equity, and an analysis of net interest income. The average balances are principally daily averages and, for loans, include both performing and nonperforming balances. Interest income on loans includes the effects of net deferred loan origination fees and costs accounted for as yield adjustments. This table is presented on a tax-equivalent basis, if applicable.
Current wording
The following tables present, for the three and six months ended June 30, 2025 and 2024, the average balances of each principal category of assets, liabilities and shareholders’ equity, and an analysis of net interest income. The average balances are principally daily averages and, for loans, include both performing and nonperforming balances. Interest income on loans includes the effects of net deferred loan origination fees and costs accounted for as yield adjustments. These tables are presented on a tax-equivalent basis, if applicable.
Previous wording
Increases and decreases in interest income and interest expense result from changes in average balances (volume) of interest earning assets and interest bearing liabilities, as well as changes in average interest rates. The following table presents the effect that these factors had on the interest earned on interest earning assets and the interest incurred on interest bearing liabilities. The effect of changes in volume is determined by multiplying the change in volume by the previous period’s average rate. Similarly, the effect of rate changes is calculated by multiplying the change in average rate by the previous period’s volume. The changes not attributable specifically to either volume or rate have been allocated to the changes due to volume. The following tables present the changes in the volume and rate of interest bearing assets and liabilities for the three months ended March 31, 2025, compared to the three months ended March 31, 2024:
Current wording
Increases and decreases in interest income and interest expense result from changes in average balances (volume) of interest earning assets and interest bearing liabilities, as well as changes in average interest rates. The following table presents the effect that these factors had on the interest earned on interest earning assets and the interest incurred on interest bearing liabilities. The effect of changes in volume is determined by multiplying the change in volume by the previous period’s average rate. Similarly, the effect of rate changes is calculated by multiplying the change in average rate by the previous period’s volume. The changes not attributable specifically to either volume or rate have been allocated to the changes due to volume. The following tables present the changes in the volume and rate of interest bearing assets and liabilities for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, and for the six months ended June 30, 2025, compared to the six months ended June 30, 2024:
Previous wording
Net interest income was $30.2 million for the first quarter of 2025, an increase of $5.6 million compared to $24.6 million for the first quarter of 2024. The increase in net interest income was primarily due to growth and higher yields in the securities and loan portfolios and purchase accounting accretion, offset partially by growth in deposits.
Current wording
Net interest income was $32.5 million for the second quarter of 2025, an increase of $7.5 million compared to $25.0 million for the second quarter of 2024. The increase in net interest income was primarily due to growth and higher yields in the loan portfolio.
Previous wording
Net interest margin (on a fully tax-equivalent basis) for the first quarter of 2025 was 2.51%, a 27 basis point increase from 2.24% in the first quarter of 2024. Core net interest margin (on a fully tax-equivalent basis), a non-GAAP financial measure which excludes the impact of loan fees and purchase accounting accretion, was 2.37% for the first quarter of 2025, a 19 basis point increase from 2.18% in the first quarter of 2024. The increase in the margin was primarily due to lower costs of deposits, purchase accounting accretion, and higher core loan yields.
Current wording
Net interest margin (on a fully tax-equivalent basis) for the second quarter of 2025 was 2.62%, a 38 basis point increase from 2.24% in the second quarter of 2024. Core net interest margin (on a fully tax-equivalent basis), a non-GAAP financial measure which excludes the impact of loan fees and purchase accounting accretion, was 2.49% for the second quarter of 2025, a 32 basis point increase from 2.17% in the second quarter of 2024. The increase in the margin was primarily due to higher core loan yields, the impact of purchase accounting accretion, and lower costs of deposits.
Previous wording
Average interest earning assets were $4.93 billion for the first quarter of 2025, an increase of $435.5 million, or 9.7%, compared to $4.49 billion for the first quarter of 2024. This increase in average interest earning assets was primarily due to organic loan growth and the FMCB acquisition. Average interest bearing liabilities were $3.77 billion for the first quarter of 2025, an increase of $375.3 million, or 11.1%, compared to $3.39 billion for the first quarter of
Current wording
Average interest earning assets were $5.02 billion for the second quarter of 2025, an increase of $473.1 million, or 10.4%, compared to $4.55 billion for the second quarter of 2024. This increase in average interest earning assets was primarily due to organic loan growth, higher average cash balances, and the FMCB acquisition. Average interest bearing liabilities were $3.85 billion for the second quarter of 2025, an increase of $402.7 million, or 11.7%, compared to $3.45 billion for the second quarter of 2024. The increase in average interest bearing liabilities was primarily due to deposit growth and deposits acquired, offset partially by a decrease in brokered deposits.
Previous wording
Average interest earning assets produced a tax-equivalent yield of 5.43% for the first quarter of 2025, compared to 5.28% for the first quarter of 2024. The increase in the yield on interest earning assets was primarily due to growth and repricing of the loan portfolio, higher rates paid on FHLB stock, and purchase accounting accretion attributable to the acquisition of FMCB. The average rate paid on interest bearing liabilities was 3.82% for the first quarter of 2025, compared to 4.03% for the first quarter of 2024. The decrease was primarilydue to lower rates paid on deposits.
Current wording
due to growth and repricing of the loan portfolio and purchase accounting accretion attributable to the acquisition of FMCB. The average rate paid on interest bearing liabilities was 3.83% for the second quarter of 2025, compared to 4.19% for the second quarter of 2024. The decrease was primarilydue to lower rates paid on deposits.
Previous wording
*Interest Income.*Total interest income, on a tax-equivalent basis, was $66.0 million for the first quarter of 2025, compared to $59.0 million for the first quarter of 2024. The $6.9 million, or 11.7%, increase in total interest income on a tax-equivalent basis was primarily due to growth of the loan portfolio and higher earning asset yields.
Current wording
*Interest Income.*Total interest income, on a tax-equivalent basis, was $69.5 million for the second quarter of 2025, compared to $61.2 million for the second quarter of 2024. The $8.3 million, or 13.6%, increase in total interest income on a tax-equivalent basis was primarily due to growth of the loan portfolio and higher earning asset yields.
Previous wording
Interest income on the investment securities portfolio, on a tax-equivalent basis, increased $1.5 million for the first quarter of 2025, compared to the first quarter of 2024, primarily due to a $133.9 million, or 20.0%, increase in average balances between the two periods primarily attributable to the acquisition of FMCB.
Current wording
Interest income on the investment securities portfolio, on a tax-equivalent basis, increased $1.0 million for the second quarter of 2025, compared to the second quarter of 2024, primarily due to a $93.9 million, or 14.0%, increase in average balances between the two periods primarily attributable to the acquisition of FMCB.
Previous wording
Interest income on loans, on a tax-equivalent basis, was $54.0 million for the first quarter of 2025, compared to $49.9 million for the first quarter of 2024. The $4.1 million increase was primarily due to growth and repricing of the loan portfolio in the higher interest rate environment.
Current wording
Interest income on loans, on a tax-equivalent basis, was $58.1 million for the second quarter of 2025, compared to $51.6 million for the second quarter of 2024. The $6.5 million increase was primarily due to growth and repricing of the loan portfolio in the higher interest rate environment.
Previous wording
Loan interest income and loan fees remained one of the primary contributing factors to the changes in the yield on interest earning assets. The aggregate loan yield increased to 5.61% in the first quarter of 2025, which was 23 basis points higher than 5.38% in the first quarter of 2024. Core loan yield continued to rise as new loans originated at higher yields and the existing portfolio repriced in the higher interest rate environment.
Current wording
Loan interest income and loan fees remained one of the primary contributing factors to the changes in the yield on interest earning assets. The aggregate loan yield increased to 5.74% in the second quarter of 2025, which was 24 basis points higher than 5.50% in the second quarter of 2024. Core loan yield continued to rise as new loans originated at higher yields and the existing portfolio repriced in the higher interest rate environment.
Previous wording
Interest expense on deposits was $32.1 million for the first quarter of 2025, an increase of $1.9 million, from $30.2 million for the first quarter of 2024. Theincrease in interest expense on deposits was primarily due tohigher balances in interest bearing transaction, savings and money market, and time deposits. The cost of total deposits was 3.18% in the first quarter of 2025, a 14 basis point decrease, compared to 3.32% in the first quarter of 2024. The decrease was primarily due to the downward repricing of the deposit portfolio and decreased average balance of brokered deposits.
Current wording
Interest expense on deposits was $32.5 million for the second quarter of 2025, an increase of $879,000, from $31.6 million for the second quarter of 2024. Theincrease in interest expense on deposits was primarily due to higher balances in savings and money market deposits and interest bearing transaction deposits. The cost of total deposits was 3.16% in the second quarter of 2025, a 30 basis point decrease, compared to 3.46% in the second quarter of 2024. The decrease was primarily due to lower rates paid on deposits following interest rate cuts in 2024 and decreased average balance of brokered deposits.
Previous wording
Interest expense on borrowings was $3.4 million for the first quarter of 2025, a decrease of $400,000, compared to $3.8 million for the first quarter of 2024. The decrease was primarily due to a decreased utilization of federal funds purchased and a decrease in the average balance of FHLB advances.
Current wording
Interest expense on borrowings was $4.2 million for the second quarter of 2025, a decrease of $16,000, compared to $4.3 million for the second quarter of 2024. The decrease was primarily due to a decreased utilization of federal funds purchased, offset partially by increased utilization of FHLB advances.
Previous wording
*Interest Expense.*Interest expense on interest bearing liabilities was $35.5 million for the first quarter of 2025, an increase of $1.5 million, from $34.0 million for the first quarter of 2024. The increase was primarily due to growth of the deposit portfolio.
Current wording
*Interest Expense.*Interest expense on interest bearing liabilities was $72.2 million for the six months ended June 30, 2025, an increase of $2.3 million, compared to $69.9 million for the six months ended June 30, 2024. The increase was primarily due to growth of the deposit portfolio.
Previous wording
The provision for credit losses on loans and leases was $1.5 million for the first quarter of 2025, compared to $850,000 for the first quarter of 2024. The provision for credit losses on loans and leases recorded in the first quarter of 2025 was primarily attributable to increased growth in the loan portfolio. The allowance for credit losses on loans and leases to total loans was 1.34% at March 31, 2025, compared to 1.36% at March 31, 2024.
Current wording
The provision for credit losses on loans and leases was $2.0 million for the second quarter of 2025, compared to $600,000 for the second quarter of 2024. The provision for credit losses on loans and leases was $3.5 million for the six months ended June 30, 2025, compared to $1.5 million for the six months ended June 30, 2024. The provision for credit losses on loans and leases recorded in the second quarter of 2025 was primarily attributable to increased growth in the loan portfolio and an increase in specific reserves for loans individually evaluated. The allowance for credit losses on loans and leases to total loans was 1.35% at June 30, 2025, compared to 1.37% at June 30, 2024.
Previous wording
The provision for credit losses for off-balance sheet credit exposures was $-0- for the first quarter of 2025, compared to a negative provision of $100,000 for the first quarter of 2024. No provision was recorded during the first quarter of 2025 due to unfunded commitments remaining stable as the migration to funded loans was offset by the volume of newly originated loans with unfunded commitments. The allowance for credit losses on off-balance sheet credit exposures was $3.6 million as of March 31, 2025 and December 31, 2024.
Current wording
The provision for credit losses for off-balance sheet credit exposures was $-0- for each of the second quarter of 2025 and the second quarter of 2024. No provision was recorded during the second quarter of 2025 due to unfunded commitments remaining stable as the migration to funded loans was offset by the volume of newly originated loans with unfunded commitments. The provision for credit losses for off-balance sheet credit exposures was $-0- for the six months ended June 30, 2025, compared to a negative provision of $100,000 for the six months ended June 30, 2024. The allowance for credit losses on off-balance sheet credit exposures was $3.6 million as of June 30, 2025 and December 31, 2024.
Previous wording
Noninterest expense was $18.1 million for the first quarter of 2025, an increase of $2.9 million from $15.2 million for the first quarter of 2024. The increase was primarily attributable to increasesin salaries and employee benefits, increased operating costs related to the acquisition, and merger-related expenses, offset partially by a decrease in the FDIC insurance assessment, which resulted from decreased brokered deposits and moderated loan growth.
Current wording
Noninterest expense was $18.9 million for the second quarter of 2025, an increase of $3.4 million from $15.5 million for the second quarter of 2024. The increase was primarily attributable to increases in salaries and employee benefits, increased operating costs related to the acquisition, and merger-related expenses, offset partially by a decrease in derivative collateral fees.
Previous wording
The Company had 292 full-time equivalent employees at the end of the first quarter of 2025, compared to 255 at the end of the first quarter of 2024. The year-over-year increase was largely driven by the addition of employees from the acquisition of FMCB.
Current wording
The Company had 308 full-time equivalent employees at the end of the second quarter of 2025, compared to 258 at the end of the second quarter of 2024. The year-over-year increase was largely driven by the addition of employees from the acquisition of FMCB.
Previous wording
The efficiency ratio was 55.5% for the first quarter of 2025, compared to 58.2% for the first quarter of 2024. The Company’s efficiency has remained consistently below the industry median due in part to its “branch-light” model.
Current wording
The efficiency ratio was 52.6% for the second quarter of 2025, compared to 58.7% for the second quarter of 2024. The efficiency ratio was 53.9% and 58.5%, respectively for the six months ended June 30, 2025 and June 30, 2024. The Company’s efficiency has remained consistently below the industry median due in part to its “branch-light” model.
Previous wording
Income tax expense was $3.0 million for the first quarter of 2025, compared to $2.4 million for the first quarter of 2024. The effective combined federal and state income tax rate for the first quarter of 2025 was 23.9%, compared to 23.5% for the first quarter of 2024.
Current wording
Income tax expense was $3.6 million for the second quarter of 2025, compared to $2.5 million for the second quarter of 2024. The effective combined federal and state income tax rate for the second quarter of 2025 was 23.9%, compared to 23.6% for the second quarter of 2024. Income tax expense was $6.6 million for the six months ended June 30, 2025, compared to $4.9 million for the six months ended June 30, 2024. The effective combined federal and state income tax rate for the six months ended June 30, 2025 and 2024 was 23.9% and 23.6%, respectively. The effective tax rate remained stable across both periods.
Previous wording
Total assets at March 31, 2025 were $5.14 billion, an increase of $70.6 million, or 1.4%, over total assets of $5.07 billion at December 31, 2024, and an increase of $413.7 million, or 8.8%, over total assets of $4.72 billion at March 31, 2024. The year-to-date increase was primarily due to growth in the loan portfolio. The year-over-year increase was primarily due to the increase in the loan portfolio driven largely by the acquisition of FMCB in the fourth quarter of 2024.
Current wording
Total assets at June 30, 2025 were $5.30 billion, an increase of $230.4 million, or 4.5%, over total assets of $5.07 billion at December 31, 2024, and an increase of $609.6 million, or 13.0%, over total assets of $4.69 billion at June 30, 2024. The year-to-date increase was primarily due to organic growth in the loan portfolio. The year-over-year increase was primarily due to growth in the loan portfolio driven by organic growth and the acquisition of FMCB in the fourth quarter of 2024.
Previous wording
The investment securities portfolio consists primarily of U.S. treasury securities, U.S. government agency mortgage backed securities, municipal securities, and corporate securities comprised primarily of subordinated debentures of banks and financial holding companies. In addition, the Company also holds other mortgage backed and other debt securities, all with varying contractual maturities. These maturities do not necessarily represent the expected life of the securities as the securities may be called or paid down without penalty prior to their stated maturities. All investment securities are held as available for sale.
Current wording
The investment securities portfolio consists primarily of U.S. treasury securities, U.S. government agency mortgage backed securities, municipal securities, corporate securities comprised primarily of subordinated debentures of banks and financial holding companies, and asset-backed securities. In addition, the Company also holds other mortgage backed and other debt securities, all with varying contractual maturities. These maturities do not necessarily represent the expected life of the securities as the securities may be called or paid down without penalty prior to their stated maturities. All investment securities are held as available for sale.
Previous wording
Securities available for sale were $764.6 million at March 31, 2025, a decrease of $3.6 million, or 0.5%, compared to $768.2 million at December 31, 2024.
Current wording
Securities available for sale were $743.9 million at June 30, 2025, a decrease of $24.4 million, or 3.2%, compared to $768.2 million at December 31, 2024. The decrease was primarily due to the sale of $58.5 million of securities acquired in the FMCB acquisition.
Previous wording
Total gross loans at March 31, 2025 were $4.02 billion, an increase $151.6 million, or 3.9%, over total gross loans of $3.87 billion at December 31, 2024, and an increase of $235.9 million, or 6.2%, over total gross loans of $3.78 billion at March 31, 2024. The year-to-date increase in the loan portfolio was primarily due to increased loan originations. The year-over-year increase was primarily attributable to increased loan originations and the acquisition of FMCB during the fourth quarter of 2024.
Current wording
Total gross loans at June 30, 2025 were $4.15 billion, an increase $277.3 million, or 7.2%, over total gross loans of $3.87 billion at December 31, 2024, and an increase of $345.4 million, or 9.1%, over total gross loans of $3.80 billion at June 30, 2024. The year-to-date increase in the loan portfolio was primarily due to increased loan originations and lower loan payoffs. The year-over-year increase was primarily attributable to increased loan originations and the acquisition of FMCB during the fourth quarter of 2024.
Previous wording
The Company primarily focuses on real estate mortgage lending, which constituted 81.2% of the portfolio at March 31, 2025. The composition of the portfolio has remained relatively consistent with prior periods, and the Company does not expect any significant changes in the composition of the loan portfolio or the emphasis on real estate lending in the foreseeable future.
Current wording
The Company primarily focuses on real estate mortgage lending, which constituted 81.1% of the portfolio at June 30, 2025. The composition of the portfolio has remained relatively consistent with prior periods, and the Company does not expect any significant changes in the composition of the loan portfolio or the emphasis on real estate lending in the foreseeable future.
Previous wording
As of March 31, 2025, investor CRE loans totaled $2.76 billion, consisting of $1.06 billion of loans secured by nonowner occupied CRE, $1.53 billion of loans secured by multifamily residential properties, $39.4 million of 1-4 family construction loans and $128.1 million of construction and land development loans. Investor CRE loans represented 68.6% of the total gross loan portfolio and 469.8% of the Bank’s total risk-based capital at March 31, 2025, compared to 68.4% and 462.0%, respectively, at December 31, 2024.
Current wording
As of June 30, 2025, investor CRE loans totaled $2.87 billion, consisting of $1.14 billion of loans secured by nonowner occupied CRE, $1.56 billion of loans secured by multifamily residential properties, $39.1 million of 1-4 family construction loans and $136.4 million of construction and land development loans. Investor CRE loans represented 69.2% of the total gross loan portfolio and 475.9% of the Bank’s total risk-based capital at June 30, 2025, compared to 68.4% and 462.0%, respectively, at December 31, 2024.
Previous wording
The Company emphasizes credit quality in the originating and monitoring of the loan portfolio, and success in underwriting is measured by the levels of classified and nonperforming assets and net charge-offs. Federal regulations and internal policies require the use of an asset classification system as a means of managing and reporting problem and potential problem assets. The Company has incorporated an internal asset classification system, substantially consistent with federal banking regulations, as a part of the credit monitoring system. Federal banking regulations set forth a classification scheme for problem and potential problem assets as “special mention,” “substandard,” “doubtful” or “loss” assets. An asset identified as “special mention” is not adversely classified but has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the payment prospects of the asset. An asset is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. A financial institution with assets classified
Current wording
The Company emphasizes credit quality in the originating and monitoring of the loan portfolio, and success in underwriting is measured by the levels of classified and nonperforming assets and net charge-offs. Federal regulations and internal policies require the use of an asset classification system as a means of managing and reporting problem and potential problem assets. The Company has incorporated an internal asset classification system, substantially consistent with federal banking regulations, as a part of the credit monitoring system. Federal banking regulations set forth a classification scheme for problem and potential problem assets as “special mention,” “substandard,” “doubtful” or “loss” assets. An asset identified as “special mention” is not adversely classified but has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the payment prospects of the asset. An asset is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. A financial institution with assets classified as “special mention” is not expected to sustain losses of principal or interest from these assets and should not classify assets under this category for more than a year. “Substandard” assets include those characterized by the “distinct possibility” that the financial institution will sustain “some loss” if the deficiencies are not corrected.
Previous wording
assets under this category for more than a year. “Substandard” assets include those characterized by the “distinct possibility” that the financial institution will sustain “some loss” if the deficiencies are not corrected. Assets classified as “doubtful” have all of the weaknesses inherent in those classified “substandard” with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions, and values, “highly questionable and improbable.” Assets classified as “loss” are those considered “uncollectible” and of
Current wording
Assets classified as “doubtful” have all of the weaknesses inherent in those classified “substandard” with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions, and values, “highly questionable and improbable.” Assets classified as “loss” are those considered “uncollectible” and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted. Assets which do not currently expose the insured institution to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses are required to be designated “watch.”
Previous wording
Loans that have potential weaknesses that warranted a watch or special mention risk rating at March 31, 2025 totaled $38.3 million, compared to $46.6 million at December 31, 2024. Loans that warranted a substandard risk rating at March 31, 2025 totaled $31.6 million, compared to $21.8 million at December 31, 2024. Management continues to actively work with these borrowers and closely monitor substandard credits.
Current wording
Loans that have potential weaknesses that warranted a watch or special mention risk rating at June 30, 2025 totaled $53.3 million, compared to $46.6 million at December 31, 2024. Loans that warranted a substandard risk rating at June 30, 2025 totaled $45.0 million, compared to $21.8 million at December 31, 2024. Management continues to actively work with these borrowers and closely monitor substandard credits.
Previous wording
Nonperforming loans include loans accounted for on a nonaccrual basis and loans 90 days past due and still accruing. Nonaccrual loans totaled $10.3 million as of March 31, 2025 and $301,000 as of December 31, 2024. There were no loans 90 days past due and still accruing as of March 31, 2025 or December 31, 2024. There were also no foreclosed assets as of March 31, 2025 and December 31, 2024.
Current wording
Nonperforming loans include loans accounted for on a nonaccrual basis and loans 90 days past due and still accruing. Nonaccrual loans totaled $10.1 million as of June 30, 2025 and $301,000 as of December 31, 2024. There were no loans 90 days past due and still accruing as of June 30, 2025 or December 31, 2024. As of June 30, 2025, there were $185,000 of foreclosed assets. There were no foreclosed assets as of December 31, 2024.
Previous wording
The balance of nonperforming assets can fluctuate due to changes in economic conditions. The Company has established a policy to discontinue accruing interest on a loan (that is, to place the loan on nonaccrual status) after it has become 90 days delinquent as to payment of principal or interest, unless the loan is considered to be well-collateralized and is actively in the process of collection. In addition, a loan will be placed on nonaccrual status before it becomes 90 days delinquent unless management believes that the collection of interest is expected. Interest previously accrued but uncollected on such loans is reversed and charged against current income when the receivable is determined to be uncollectible. If management believes that a loan will not be collected in full, an increase to the allowance for credit losses on loans is recorded to reflect management’s estimate of any potential exposure or loss. Generally, payments
Current wording
The balance of nonperforming assets can fluctuate due to changes in economic conditions. The Company has established a policy to discontinue accruing interest on a loan (that is, to place the loan on nonaccrual status) after it has become 90 days delinquent as to payment of principal or interest, unless the loan is considered to be well-collateralized and is actively in the process of collection. In addition, a loan will be placed on nonaccrual status before it becomes 90 days delinquent unless management believes that the collection of interest is expected. Interest previously accrued but uncollected on such loans is reversed and charged against current income when the receivable is determined to be uncollectible. If management believes that a loan will not be collected in full, an increase to the allowance for credit losses on loans is recorded to reflect management’s estimate of any potential exposure or loss. Generally, payments received on nonaccrual loans are applied directly to principal. Gross income that would have been recorded on nonaccrual loans for three and six months ended June 30, 2025 was $169,000 and $342,000, respectively. Gross income that would have been recorded on nonaccrual loans for the three and six months ended June 30, 2024 was $23,000 and $36,000, respectively.
Previous wording
At March 31, 2025, the allowance for credit losses on loans and leases was $53.8 million, an increase of $1.5 million from $52.3 million at December 31, 2024. Net charge-offs (recoveries) totaled $11,000 during the first quarter of 2025 and ($3,000) during the first quarter of 2024. The allowance for credit losses on loans and leases as a percentage of total loans was 1.34% at March 31, 2025 and 1.35% at December 31, 2024.
Current wording
At June 30, 2025, the allowance for credit losses on loans and leases was $55.8 million, an increase of $3.5 million from $52.3 million at December 31, 2024. Net charge-offs (recoveries) totaled $1,000 during the second quarter of 2025 and ($2,000) during the second quarter of 2024. Net charge-offs (recoveries) totaled $12,000 for the six months ended June 30, 2025, and ($5,000) for the six months ended June 30, 2024. The allowance for credit losses on loans and leases as a percentage of total loans was 1.35% at June 30, 2025 and 1.35% at December 31, 2024.
Previous wording
Total deposits at March 31, 2025 were $4.16 billion, an increase of $75.7 million, or 1.9%, compared to total deposits of $4.09 billion at December 31, 2024, and an increase of $355.2 million, or 9.3%, over total deposits of $3.81 billion at March 31, 2024. Core deposits, defined as total deposits excluding brokered deposits and time deposits greater than $250,000, increased $63.7 million, or 8.3% annualized, from December 31, 2024. Growth in core deposits was primarily due to both increased balances of existing clients and new client acquisitions. Based on the nature of the Company’s client base, management believes core deposits could fluctuate in future periods as deposit growth is not always linear.
Current wording
Total deposits at June 30, 2025 were $4.24 billion, an increase of $150.0 million, or 3.7%, compared to total deposits of $4.09 billion at December 31, 2024, and an increase of $429.0 million, or 11.3%, over total deposits of $3.81 billion at June 30, 2024. Core deposits, defined as total deposits excluding brokered deposits and time deposits greater than $250,000, increased $79.9 million, or 5.1% annualized, from December 31, 2024. Growth in core deposits was primarily due to both increased balances of existing clients and new client acquisitions. Based on the nature of the Company’s client base, management believes core deposits could fluctuate in future periods as deposit growth is not always linear.
Previous wording
The Company relies on increasing the deposit base to fund loans and other asset growth. The Company is in a highly competitive market and competes for local deposits by offering attractive products with competitive rates. The Company expects to have a higher average cost of funds for local deposits compared to competitor banks due to the lack of an extensive branch network. The Company’s strategy is to offset the higher cost of funding with a lower level of operating expense. When appropriate, the Company utilizes alternative funding sources such as brokered deposits. The brokered deposit market provides flexibility in structure, optionality and efficiency not afforded in traditional retail deposit channels. As of March 31, 2025, total brokered deposits were $831.5 million, an increase of $5.7 million, compared to total brokered deposits of $825.8 million at December 31, 2024. Brokered deposits continue to be used as a supplemental funding source, as needed, to support loan portfolio growth.
Current wording
The Company relies on increasing the deposit base to fund loans and other asset growth. The Company is in a highly competitive market and competes for local deposits by offering attractive products with competitive rates. The Company expects to have a higher average cost of funds for local deposits compared to competitor banks due to the lack of an extensive branch network. The Company’s strategy is to offset the higher cost of funding with a lower level of operating expense. When appropriate, the Company utilizes alternative funding sources such as brokered deposits. The brokered deposit market provides flexibility in structure, optionality and efficiency not afforded in traditional retail deposit channels. As of June 30, 2025, total brokered deposits were $870.6 million, an increase of $44.8 million, compared to total brokered deposits of $825.8 million at December 31, 2024. Brokered deposits continue to be used as a supplemental funding source, as needed, to support loan portfolio growth.
Previous wording
The Company’s total uninsured deposits, which are the amounts of deposit accounts that exceed the FDIC insurance limit, currently $250,000, were approximately $1.20 billion, or 29.0% of total deposits, at March 31, 2025 and $1.14 billion, or 28% of total deposits, at December 31, 2024. These amounts were estimated based on the same methodologies and assumptions used for regulatory reporting purposes.
Current wording
The Company’s total uninsured deposits, which are the amounts of deposit accounts that exceed the FDIC insurance limit, currently $250,000, were approximately $1.30 billion, or 30.5% of total deposits, at June 30, 2025 and
Previous wording
At March 31, 2025, the Company had outstanding FHLB advances of $349.5 million, compared to $359.5 million at December 31, 2024. The Company’s borrowing capacity at the FHLB is determined based on collateral pledged, generally consisting of loans. The Company had additional borrowing capacity under this credit facility of $537.8 million and $483.2 million at March 31, 2025 and December 31, 2024, respectively.
Current wording
At June 30, 2025, the Company had outstanding FHLB advances of $404.5 million, compared to $359.5 million at December 31, 2024. The Company’s borrowing capacity at the FHLB is determined based on collateral pledged, generally consisting of loans. The Company had additional borrowing capacity under this credit facility of $490.7 million and $483.2 million at June 30, 2025 and December 31, 2024, respectively.
Showing the first 40 of 52 pairs. Open the source sections for the rest.
Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
available to us and speaks only as of the date on which it is made. The Company undertakes 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.
Current report — wording carried from elsewhere
Average interest earning assets produced a tax-equivalent yield of 5.56% for the second quarter of 2025, compared to 5.41% for the second quarter of 2024. The increase in the yield on interest earning assets was primarily
Current report — wording carried from elsewhere
Net interest margin (on a fully tax-equivalent basis) for the six months ended June 30, 2025 was 2.56%, a 32 basis point increase from 2.24% for the six months ended June 30, 2024. Core net interest margin (on a fully tax equivalent basis), a non-GAAP financial measure which excludes the impact of loan feesand purchase accounting accretion, was 2.43% for the six months ended June 30, 2025, a 25 basis point increase from 2.18% for the six months ended June 30, 2024.
Current report — wording carried from elsewhere
Interest income on the investment securities portfolio, on a tax-equivalent basis, increased $2.5 million during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to a $113.8 million, or 16.9%, increase in average balances between the two periods primarily attributable to the FMCB acquisition.
Current report — wording carried from elsewhere
$1.14 billion, or 27.7% of total deposits, at December 31, 2024. These amounts were estimated based on the same methodologies and assumptions used for regulatory reporting purposes.
Current report — wording carried from elsewhere
and securities repayments and maturity activity and continued deposit gathering activities. As described above, the Company has in place various borrowing mechanisms for both short-term and long-term liquidity needs.
Current report — wording carried from elsewhere
Liquidity is the Company’s capacity to meet cash and collateral obligations at a reasonable cost. Maintaining an adequate level of liquidity depends on the Company’s ability to efficiently meet both expected and unexpected cash
Current report — wording carried from elsewhere
consisting of $698.3 million of brokered time deposits and $127.4 million of non-maturity brokered money market and transaction accounts.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
The Company is a financial holding company headquartered in St. Louis Park, Minnesota. The principal sources of funds for loans and investments are transaction, savings, time, and other deposits, and short-term and long-term borrowings. The Company’s principal sources of income are interest and fees collected on loans, interest and
Previous report — wording carried elsewhere
The increase in average interest bearing liabilities was primarily due to deposit growth and deposits acquired, offset partially by a decrease in brokered deposits.
Previous report — wording carried elsewhere
as “special mention” is not expected to sustain losses of principal or interest from these assets and should not classify
Previous report — wording carried elsewhere
such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted. Assets which do not currently expose the insured institution to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses are required to be designated “watch.”
Previous report — wording carried elsewhere
received on nonaccrual loans are applied directly to principal. Gross income that would have been recorded on nonaccrual loans for three months ended March 31, 2025 and 2024 was $173,000 and $13,000, respectively.