Earnings call transcript Q1 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Bridgewater Bancshares 2023 First Quarter Earnings Call. My name is Jordan, and I will be your conference operator today. All participants have been placed in a listen only mode. After Bridgewater’s opening remarks, there will be a question-and-answer session. [Operator Instructions]. call recorded. today's that note is being Please

At Horstman, begin Director I would the introduce Justin like to of call. go this Please time, conference ahead. Investor Relations to

Justin Horstman

and Jordan, Thank morning, you, good everyone.

financial call me Joe an few Officer, moments, just Officer; Financial results. and are Joining Place, Chief first of today's Jerry Chairman, our Lending Chief Chybowski, Chief President Shellberg, Jeff provide a Chief we overview Baack, XXXX Officer; Nick will Executive and Credit quarter In on Officer.

a referencing is on be that We'll slide Bridgewater's available the presentation of section website, Investor Relations investors.bridgewaterbankmn.com.

will Following our opening it questions. remarks, we open for up

looking During for in predictions update today's and of may we provide release make that XX, of differ first may more uncertainties the and quarter us. March information performance that see today the events Information future forward projections or statement earnings caution which presentation, our actual statements forward duty to results regarding and looking will financial Please undertake may the materially. Company, no are we as affect future risks the statements disclosure information. XXXX or is we we other about XXXX such

GAAP trends quarter disclose determined should accordance earnings measures first to measures to caution of disclosures We a not this that be We see measures for viewed financial certain non-GAAP and peers. the disclosures these Please facilitate to help them related reconciliations for our with substitute performance believe to in investors or comparisons our the operating results comparable non-GAAP viewed as financial measures. We during of and provide Company's release also be in GAAP. may operating performance XXXX the non-GAAP should to information with addition call. GAAP meaningful the understand

over call President would CEO, Bridgewater's the Chairman, like turn to and Jerry I Baack. to now

Jerry Baack

for Justin, today. joining you you, us Thank thank everyone and

the a perspective to we Before I share want financial take quarter, on results current into the banking to moment our dive environment. our for

sector likely There's adverse the continue are some that for March failures had the bank that question in have to an no banking impact on time.

forward of doing have the However, level years, the a and mitigating way growing highly providing the effectively to differentiated for manner and in clients, made we including our last a best our to things believe service the XX simply us that bank is successful risk. efficient managing continue

a clients have have well for we variety all became This Twin more and with. apparent with of the on them included we business relationships of IntraFi conversations as even which It in that deposit their balances minds to at with This serving ensure We our them starts in March for this local in known clients have have standing had years. confidence reasons. had many offer we to leveraging place our put to model ways simple network, larger ease. proactive remind such as in strategy and support Cities long the solutions educating

March Only our as XX% uninsured deposits of XX. of were

We no liquidity quality to capital held also a position high have maturity securities. and with securities strong and portfolio

the new using term now $X.X several of available deposits. increase bank have of without twice level than liquidity our taken more borrowing program to have funding We the capacity uninsured actions and billion

AOCI. value the to our including rate through recent book continue to rates securities risk been derivatives impacts XXXX interest This adding on interest evident Finally, managing and rise peers even we've experienced as in growing was material mitigate to continue the able to as tangible in proactive years, negative losses our portfolio. unrealized we're

BWB gain talented, current BWB advantage market the unpredictability confident is I the meet the remain share. incredibly and solution opportunity Despite resilient. can in team The oriented the of challenges full and strong, environment, to that take

and the internal remains is I efficiency effort BWB, has team. work the relationship the the This priority and what of future. is hardworking commitment in us ethic differentiated At team what because of every our succeed us client the strongly one. and the will believe of in skill one the lead ratio of and each for only past number to members. possible low it I'm Our is grateful

Turning noise the share. $X.XX rate are X, as slide challenging first with environment, sector banking to and given we we the earn all pleased results XXXX our per in quarter

the fourth As we we moderated call, see sheet margin indicated on of pressure earnings both quarter and which levels balance we of more experienced. to in our expected first additional quarter, growth XXXX

Loan in seasonal we as the turned pace loan deposit retention slightly deals. as March the later quarter. our on much remain Deposit initiatives saw slowed selective balances grew balances annualized in XX% typical attention of outflows at we more declined a pipeline and as we and toward

in additional the quarter opportunities As mid on on will spend pressure. execute expected, controlled details of funding headwinds. Joe resulted manage as strong were range pressure provide in helped the very term first some and minute. this in a the current just margin to very the near XX% a ratio margin We revenue in discretionary in more efficiency the we environment. maintained offset Expenses well better

non-performing our Asset our first due also to charge in impact an during of assets commitments. net net CECL quality had in We offs. remains consecutive lower quarter quarter no the reduction on unfunded superb and ninth adopted with low provision

it over Joe to With that, turn I'll Chybowski.

Joe Chybowski

Thank Jerry. you,

saw additional quarter. some the X, interest further details expected net the provide margin, which Turning in I'll to compression slide first on

declined continue faster at The this than in funding costs XX yields to to rate a environment. as margin X.XX% higher pace points increase asset earning basis

bearing, bearing As to deposit similar to rates, from to banks. continue a other seen the Fed we raise have mix interest shift non-interest

We the retain in costs given the to pressure mid-March. quarter later balances deposit also banking work upward in we disruption on as saw some

moderated the funding as and while overall pace funding the which we some did loan additional of growth costs loan leverage well. during addition, impacted borrowings In quarter, deposits to supplement wholesale

impacted by on pace continued income reduced also slow. a was to moderated loan due the loan payoffs lower to interest quarter fees growth. and basis more as Net declined linked NII the of pace of margin

the yields typically many originations loan you margin. for Portfolio will coming components future, with longer. which various of higher on the which of at see should new On penalties, Slide can for being yields to are to cement help on X% X.X% continue yields prepayment especially these structured strong grind the higher foreseeable X, with

to alternatives. million also loans given we both year of and have reprice $XXX over competition loans addition, million core trend costs Funding next are floating likely In deposits rate higher over adjustable and $XXX and rate today. on other market treasuries the fixed scheduled of to variable and to rates due elevated over efficiently

interest the to outlook more predict. difficult industry over becoming With and past months, margin banking the rate dynamics evolving couple is of

additional quarter, second a expect in we some to see likely pressure than margin first quarter. it more will pace the in the saw We modest we although at be

be forward impacted deposit growth. of going the the by margin rates, our shape the interest of path the yield curve Ultimately, of core will pace and

assumption throughout peaks remains and there at that is current funds X% Fed XXXX. Our

to a Turning to continue Slide profitability. we long X, of record track demonstrate and strong revenue

the We the have the is seen given our revenue on quarters couple vast revenue of side of over spread majority past pressure based.

the will of and to we've that the we non-interest reoccur. letter over expect However, fees which on side, benefit from the credit non-interest due the Overall, of increased fourth higher incrementally $XXXX to don't income across with prepayment business income, FHLB quarter primarily been pleased long enhancements fee run. nearly income XX.X%

base due operate a our to where revenue an expense more to is continue strong challenging. we XX.X% X, ratio manage of Slide with efficiency the ability to environment in growth to Turning

fact, X.X% expense discretionary the non-interest quarter decline some fourth In we spend. we expenses, saw marketing from reduced as including

with in we in the historically past, we've line expenses have As asset grown shared growth.

to While this remains long target will in more for current especially over opportunities we term, to our the operate look the environment. efficiently, continue

that, turn I'll over With Nick to it Place.

Nick Place

as our market during toward in retention focus On deposit overall X, turned given dynamics was Thanks, quarter, first we relatively March. Joe. Slide the flat deposit growth the

deposits. comfort outflows, an Our existing help around job deposit That modest with team relationships were The but held said, clients these solutions have really provide we overall to with balances our strong. engaging strong there clients did ongoing our with conversations. some and amazing their of

into accounts. Although a from we like bearing banks, see most non-interest bearing did interest shift

focus our loan over course better remains deposit with core on As aligning XXXX. last of we growth mentioned the quarter, growth

in acquisition and market We expect bit times. the this term be the more client lead dynamics challenging onboarding unprecedented near to longer and a given

still and opportunities deposit and confident of are front our service loan getting that responsive and numerous model in future growth. local new remain We drive will

our detail provides base. on some deposit additional XX Slide

As stabilizing at balances we outflows core net we and beginning look the end with flows, at during deposit saw month. the March of grow of the to middle

industry normal including these seasonality, due and moves season continued as tax rate The alternatives. toward majority well cyclicality higher as to outflows of were

you in as of XXXX deposit flows the fact, March flows of the in saw trajectory slide, on with very XXXX. March closely tracks deposit we see In can

an is our example that. before, growth deposit said linear we've isn't typically this and of As

steps traditional few we Level to end, an while uninsured deposits the this with also discussing in larger We of feel At very which spotlight the their insure industry were allows XX% line year FDIC our comfortable. deposits fully to educate also them to have the where clients median. uninsured product, and over the accounts, IntraFi on ways took is months past insurance balances. of was in been on increase our area which

balances total deposit uninsured IntraFi to quarter In level $XXX the fact, increased of during our lowering million our XX% deposits. first

was largest pace in our of increase of XX% expectations. seen the with the our quarter. first date the slowing first the the line quarter quarter beta quarter as end to XXXX from in the cycle of the third percent to deposit beta The was in we've Finally, with fourth

XX.X% due the loan demand opportunities to more with in Turning to outlook. own quarter efforts Slide on be moderate to to our was selective slower funding This we slower XX, growth our align we of better as growth of the pace loan loan expected pace growth and saw first annualized.

with originations growth low range full-year double line our clients continue loan digit digit single to XXXX, While we to expect core and will our loan verticals. new we the communities in in with support in high

XX. Turning to Slide

pace reduced year-over-year. in to market, slower the million the we loan XX% continue down a quarter, of first demand in see which originations, totaled the $XX With

the loan quarter slower XX% driver paydowns, which loans. payoffs In in growth declined fact, advances and the originations the first are of was existing year-over-year. on primary our Offsetting reduced

Overall on to growth will year. going the loans, which loan existing growth advances dependent somewhat continue on forward throughout loan create be portfolio will

payoffs, pace difficult well predict be the which environment. the can As current as to of in

$XX $XXX including on originations loan growth first totaling unfunded sold past and million now over have We quarter. $XXX portfolio the been of managing in commitments. year, quarter million also The over participations each including has participations increased selling over million by the new participation our

well. In addition benefit this revenue provides as to helping manage servicing our an growth, added

On development which of most driven are quarter loan loan types see we can construction all you by related. existing by multifamily Slide led strong loans, across on growth XX, had and first draws

As balances will many these into these projects of loan complete their other construction phase, migrate portfolios.

our non-owner helps majority of with comfortable fixed from risk is very repricing book occupied CRE rate feel which portfolio. we Overall, The the standpoint.

actively been have have next that situations We over flow possible recommending of or months while necessary. engaging maturing resetting in with process cash solutions the earlier strain and rates if clients identifying XX the

exposure quarter loans. total end, business of X% Minneapolis occupied we $XX non-owner This of of the loans includes As $XXX CRE Paul which million. districts in is central just million totaling and three had of Saint office only

feel This we about loan which a base but and a diversified is obviously lower amount, average the outlook mid-western portfolio primarily demonstrates closely, are suburban the given exposure. monitoring loan we are good

it turn to Jeff I'll over Shellberg. now

Jeff Shellberg

Nick. Thanks,

end continues asset the up of to just Non-performing very remained making Turning our X.XX% assets superb. XX, at to quality levels March. of assets total low Slide at be

no net essentially addition, quarter. for ninth In had offs consecutive charge the we

lending $XXX,XXX six measured credit fact, underwriting is the plus standards, teams. net largely active cumulative oversight years. credit due In have just selection, offs over and charge our This of risk experienced consistent we to and had past

we take an seen recession the we potential some normalization horizon. have extended proactive to Therefore, do given the higher any interest environment to issues, we on and address steps While credit point credit expect concerns. rate without period at potential continue

evaluating current loan Nick rate portfolio, the to interest we mentioned, loan our meet covenant attention client's risk CRE to As environment. paying repricing assessing our are special in ability including by

potential identify taken We non-owner a to the office our have by look in properties occupied remote impacted underperforming environment. work also deeper portfolio

to CECL million day was The for included increase XXXX. tax impacted losses the In earnings. X, allowance retained totaled increase $XXX,XXX as adjustment The and recorded the an credit January impact affected adopted million $X.X commitments. to a a to allowance and unfunded we for addition, one $X.X

points stands at at the quarter. the loans reserve of total from quarter, our gross of X Overall, basis end first last X.XX% the up

an In of increase of terms saw the we due to CRE classified office first of million $X.X assets, the quarter loan. in one downgrade

loans and made are loans. which and between more C&I than X% of classified capital. assets, than X% Slide XX assets evenly provides total less CRE some on Classified up our detail total less split pretty of

we million being we $X.X well about by it upgraded. feel declined to profile loan the positioned portfolio one of C&I is good through balances Overall, risk and primarily due the list Watch as XXXX. move feel

to turn now back Joe. it I'll over

Joe Chybowski

The Thanks, Jeff. high Slide and over is portfolio It's over portfolio to our mortgage XX% the maturity rated is we available rated which any quality diversified investment well XX.X% have is with not or for grade up important corporate past mix to XX sale securities. a highlights strong securities year. municipal with securities, bonds also note securities. portfolio, highly that do held backed The better. of

median just quarter. losses bank compared our is current XX.X% the offset fourth derivatives have securities securities in environment. feel in In addition, of comfortable in AOCI of capital X.X% helping in of we portfolio money very the place We in the resulting the portfolio to the the portfolio the peer to unrealized in some to with

several Turning million level XX, of our we to reinforce we $X.X liquidity already twice uninsured billion increased as to than liquidity March actions off took our more sheet position slide our strong on by deposits. balance $XXX the to in and

of the higher pledging securities These to noting cash look we we securities unrealized $XXX included were liquidity bank It create Federal that worth collectively the or borrowings pledged during forward. insured where We term Reserve additional comfortable FRB position deposits, adding losses, and portfolio, the certainty. securities you quarter. borrowing liquidity very any we capacity at and with sheet. the the $XXX moving and optimizing with is our generally million the not on actions million When effectively those balance loans feel utilize and discount did at program funding from new capital window of stand

X.XX% our CETX ratios tangible tangible the retained with dropped growth. as common CECL, Slide remained book while capital day levels comfortable impact one due strong We to at through slightly and which went to our XX highlights remain value capital primarily equity of current stable earnings. X.XX%

back We common with earnings ratios up of throughout our tangible retention. will to look build CETX growth and and XXXX slower pace continued equity loan a

primary a remains organic priority growth From standpoint, capital focus. our

that, potential opportunities. and continue review we evaluate to M&A Beyond

by million stock the XXXX. $XX in program a have also We approved Board repurchase that was

However, unlikely in it is we with the current repurchase look environment. near-term our capital shares in to as will the we be conservative

such the downs. increased and market and consistently includes X.X% COVID cycle grow unprecedented XX.XX% series This recent value fed to value quarter. We through Tangible book continue bank tangible of another a hiking various ups and in challenges book recent first as failures. share per to

Slide summarize Turning thoughts on near to I'll XX, our term expectations.

We expect developments. keeping with closely digit challenging recent aligning low of of that the near course more due double industry be to year, full-year remain core on the growth term to deposit focused in high over We in XXXX. for loan our the single the deposit in to will more likely continue the mind this growth core range growth

we XX% term target environment. current ratio deposit this above remains near to given may to slightly the loan Our in sit the XXX% but

will As second likely margin we the compression quarter the interest additional mentioned I net industry see changing earlier, given dynamics. in

expect than our this However, core shape what interest growth. we the seen depend will and deposit be on quarters. to curve, have the outlook yield pressure in less the pace Overall, recent path likely the of margin rates, of of we

efficiency the to the the see near margin outlook, mid could ratio Given XX% high range we in the move to term.

mentioned tangible throughout manage and standpoint, a current As will we we CETX And expenses common capital equity ratios continue as XXXX. look our the to to build environment. in I from

Jerry. turn to now I'll it back

Jerry Baack

proactively our strategic in want high everyone in quality growth, operate business, Finishing term our XXXX, which to of scalability include balance ERM Joe. quality asset investing efficient continuing for up the while sheet slide on implementing readiness including longer and a of risk remind priorities manner we to Thanks, highly managing XX, continued the strategies. assessing function

It's an land purchased fill growth As This our we supplement will a help recently out novo in piece in of Minnesota growth of priority, help Elmo, metro road. part down opportunity de the higher for branch. core Lake area. a footprint our also term readiness deposit East strategic to a future us longer

up open that, With questions. we'll this for

Operator

[Operator Instructions].

from comes go Please Brendan ahead. question First Sandler. Piper Nosal with

Brendan Nosal

guys. Hope morning, you're well. good Hi, doing

Jerry Baack

Hi, Brendan.

Brendan Nosal

Just month-to-month through March? walk you evolution costs. Can off order of of to of funding funding quarter? of pricing throughout spot where maybe the in give us start end And the at on here kind kind the deposit to first sense a us costs

Joe Chybowski

Brendan, Hi, this Yes. Joe. is

when margin, quarter when talked guided about think environment. I last talked the a the to drive -- margin we certainly that about competitive and components we So, we deposit obviously

certainly certainly there's and and treasuries alternatives. for competition market there's think of money amongst deposits plenty other I alternatives

of we transpired the mean elevated as experiencing And beginning of that think events. I to about them, and really rate the quarter we at I our really are proactive with were lot in then ultimately re-pricing to in some events really think to funding that March, translated quarter. the conversations resulted in as that inevitably a out resulted I So, situation, costs really clients the talk them the reaching

kind talk here that the that I pressures And half think think you'll you of that the all that more put the if margin. see I back say in together, just next will broader accelerated the I'd something deposit the say help generally of I'd quarter. about at So, translate costs just we quarter.

migration As provided along these as helpful and I've of from core interest a and data well couple grow deposits, the noninterest-bearing clients to standalone, we last net just we really some talked some challenges X%, think was with quarter, point about interest-bearing. so December as that with interactions was comments margin I to that which just you talked as

which to X.X%. right really March helpful with is around another was think at data margin, point start standalone I

think data about that helpful and go-forward a I remains all if to but add basis, I you So, point a together, environment that that's challenging. margin on couple think you think the

there's think about the itself, if us a yield dynamics curve the of to do to you to what's think of lot shape I there's for really lot the market on ability itself, deposits. go of -- going a grow fact the basis, forward a the continue core

think all to those a go-forward make basis predict. margin certainly of on I harder

for, than helpful get it's but So, those dynamics. really more bargained there that's think you out that it probably I and talk about it's

Brendan Nosal

me guys Maybe great, that's looks to nice no, March mostly color NIM just definitely the of for really accruals. did really, a was on Yes, helpful. you back, is job for the kind base, expenses, on Joe. the I Thanks and more step one spot cost control before comp like working it

you So, pressure. bring assets guys you're can as that totally expense ratio down average revenue combating to

what curious into kind and of expenses at of insight we revenues? you what kind reset of through kind Just the finding do accrual And have with rate? as run is move line comp point typical that overall year

Joe Chybowski

Yes, that I right lower. definitely you're think reset it

think building growth high you in expense least And that, terms of on alongside lockstep start, about growth will run revenue. so, asset we've also and as really always that in said at level or

saw pull growth we talk basis the high if some we single-digit side. NII here on back go-forward and obviously relationship that was asset really as also with driven to net those through we were margin, about maintained. loan able of kind On revenue So, a interest -- challenges expenses and

of starting basis. line for run that in composition. forward, And non-interest go-forward I this the a always of on total the point expense you from on us moving XX% I about a think low think salaries kind that's fair has assumption comp think expense when think I

assumption. So, also fair a I think that's

we've away and done that people continuing last company. technology in other also obviously we certainly And of to invests look and the opportunities think a about the year, spend. certainly discretionary we manage invest of couple the from cognizant We at growth in shy so, pullback we're going that, our efficiency to But we're the over want I some to years continue and marketing. I don't to talked certainly company definitely in to of think throughout look as

will but as involve investment, always that in-line I up will hold some growth. So, asset expense think the overall with line

Brendan Nosal

for questions. Got the great. right, all it, Thank you taking

Operator

Rulis D.A. Jeff next with comes question Davidson. from Our

Jeff Rulis

Good morning. Thanks.

deposit the graph. First off the deposit on side, March love

of deposit that's think got XQ far walk gone some down to April, track of wanted pretty expectations of kind little how the just then just through, and to so balance second further that's telling expectations, balance I and but in flows for kind year-over-year you out probably in those in a tax half? narrow interested in and activity, the

Nick Place

The trend Hi Nick. around is this balances take typical tax first is tax season, down is I'll the with tail-end some that one. then of continued time. momentum at the that those seasonality we saw through March two with then and of we weeks of April. That Jeff, And right saw back rebuilding. expected drift balances

back saw to April that about top good the had that to carried that similar ‘XX, of momentum March comparing of we did through feel we we ‘XX that in right layers April part what we in So, of that well. what and first on we as if look XXXX

balances the continued. held and that have cyclicality sort has So, of in

get new really ability just span we a size we our the Looking ones. from continue good We the and good with small some last front to night. lending about really in having that and really further spectrum to wins about with that brand great large a our amazing probably hall staff had sort town staff to of customers deposit team had relationships. out, meeting deposit has an feel core client the and of And hour talking -- our relationships spent

the share. and people that and challenges we And take we to that what out the we'll just market So responsive that feel ultimately experienced serviced allow team's of win years our do another have to continue well in that. over confident through and going And to ability we'll forward. continue market taking in model, XX I the in feel to have to and service really is momentum we'll our thing about our March sense sell we share phenomenal has good us

to grow ability good deposit base. feel to we our continue about So the

Jeff Rulis

the that cycle of pace expectation the a slowing. for you and is kind updated XX% And to cycle peak beta through beta? date, Have at you alluded ultimate Nick, to

Joe Chybowski

Joe. – this think I Jeff, is

I think the we're pleased thus experience we've with had far.

kind think and basis it's challenging. I and talk go forward prior about some cycle to that think couple other. we certainly happened makes beta any the back this because a March that unlike is cycles of assumptions I of we And events go you in of on it's tough

core when line XXXX we feel at look think But think that's of basis you prior again, the cycles deposit of over XXXX. points XX to when of good I modeling beta I XX% we a look with expectations in back and perspective rate from kind months. we're up XXX

it's So experience. that goes anticipate the or where to far, thus we're where with but that I think hard pleased peaks

Jeff Rulis

obviously just you growth Sure. you single digit high It's And the two, excuse loan that could excuse Any Jeff, me, single to a quarter digit I increase to hop office thoughts tough to one me, – thought clarify double heard this that? impacted by low pace. peg. One, largely trying or provision digit wanted in was confirm then classifieds CECL credit on the track CRE. to I I just cap low – say

Just for expectations line? wanted check-in the provision to on

Jeff Shellberg

pandemic property. property they books has years, been five it reposition but acquisition for some on the the traction hit the with and Sure. just was long of the I'll have hasn't institution. downgrade client reached But Loan talk but client existing let was term or long yes, the on provision. then Joe the start and is a It about CRE was term of about stabilization. a and off it the

needed credit. just that that downgrade made we determination felt we the we to So the

Joe Chybowski

go CECL what to talk in Jeff, the I so I'll transpired basis. And a and of line. the just quarter forward from first mean really then then kind

increase ACL we then saw was allowance So as commitments, losses, we credit talked day we run unfunded one, the an and commitments, increase unfunded for to the it I say funded. roughly to million $XXX,XXX allowance about the allowance $X.X saw the of want for for a

as million. talked earnings overall So to expected tax $X.X basis a on we about retained was effect net the

of unfunded provision as quarter, then we ACL a we and funded those to translate, we provided for moved as $X.X commitments unfunding million for funded a commitments. throughout lot actually reverse and So loans, itself, growth the we loan the experienced on moved

So basis. ultimately $XXX,XXX in was Obviously level. good forward about with barring P&L comfortable impact changing, then we're $XXX,XXX first feel environment a the that quarter we the that but go and on

Jeff Rulis

good reserve is that should We good look that is ish of a kind the you a at -- of Okay. at loans hold kind mark.

Joe Chybowski

don't change in things certainly. assuming environment the Yes,

Jeff Rulis

Understood.

capital given if that sounds understandable but the more one. always side, a environment more the cautious you've like a you're touch Okay, last health on just M&A big not Maybe on Any on Jerry, I shop, your thoughts is side about but interested from little am of the conversations. potentially kind of current on other perspective? opportunities thinking a environment in choppy, about the this. M&A thoughts M&A your

Jerry Baack

do done But Yes. this will on we after overall like feel we'd owners deal, than for they clearly there of been we that the it's on more and a those make cycle to continue just only And locally and environment in banks we -- -- as there in outside be but past a we've talk and have lot Cities one an know of sure talks and certainly also the some to Twin and two with five at that in to next in Frankly, just due be just some past. have if that that some that point. but we the going for sell. long of don't these point conversations I've is fatigue leaning And some the toward this thoughts that the we'll current to done to with I term bankers. market. through we've some mean to go to do opportunities are them to my top see think continue M&A. this sellers I I years, really opportunity year real meet this there's really out happens they at certainly what had there decide

I'm really always do. answered as not probably same So I the I question, your sure

Jeff Rulis

and Appreciate No, thanks, thank Jerry, it. you all.

Operator

Ben Gerlinger go Hovde comes Group. question with ahead. from Our next Please

Ben Gerlinger

guys. morning Hi, good

Jerry Baack

Hi, Ben.

Ben Gerlinger

kind could -- continues we curious, loan any about red think you am no the I the but deposit goal, you deposits your kind underwhelm growth is by I you of was been kind exceed where not here, loan or guys, on it. loan line working mean, obviously against I when will deposits growth? picking it's overall to tough means continue of environment like you're to ratio, there If deposit a

Nick Place

Hey, deposit over and some Nick. Maybe can side seeing is we've the to a Ben. done on But we're This I'll I of loan loan then pass sort maybe add manage think growth. with it color start the loan on of lot and Joe just he to things growth I'll ratio. what

fundings just at construction look book. QX, we if think the that the coming and bulk existing really advances of I from loan

closed in we're ago were to better continue XX forward growth. to moderating of to model quarters. work lot provide that their that then will visibility balances. a XX that some get down that we are to how over into We've we to try loan the fund pace can much to for like originations that feel funding growth loans level a So months done of certainly deposit loan And new with coming core construction

of loans deposit And in our in some bit line toward our XX% some five was quarter. fundings if at I came pace with quarter with a you at growth But on in the look the was. what that think loan annualized, end growth really elevated QX that's

front. So progress that we're making on

support to though. continue will our We relationships client

as as long-term great client long-term bring we on them loan bank. think to as got we've to providing great the for to as And much lot a us. the to those us they over deposits will that side with the on be opportunity bring their continue new relationships. relationships it cases, opportunities there we need mean, I about come In does core for client of on then need

place initiatives continue aware that to to and have we like we'll our lot have. and customers of the to best So growth core we're a that. will in I as But manage to can that will of selling those loan moderate through that to continue participations dynamics as our we like well we're support said, manage we we always sell continue

Joe Chybowski

on Ben, And I piggyback Yes. Nick. just

XX% we think when exactly mean, from said Nick XXX%, I long-term I is -- purely being the ratio that. always right. our what And we slightly is over think think target I and so to standpoint, just

feel we comfortable we back range. we're can mentioned that that doing, within get everything that think I I mean Nick

shut that, and And pipeline. go certainly completely down going we to not a fast, we're over the if hard

it given and it more We’re of even certainly environment. cognizant cognizant of we're the

to obviously mean, that attention there's certainly we're or least less And core the being the line it's more at ratio. cognizant that extent, doesn't to I keep willing put on linear. pace broker of deposit demonstrated think item. to growth supplement we've I deposits

Ben Gerlinger

just have just growth to curious cash and growth I you you. when deposit of of phenomenal. your overall base approaching forward. or relative a balances But you're kind to you pretty the tell think, entertaining. term. long-term that don't peripheral so sources you been within I'm seen secret have high think thesis diversification bigger going that here, know, I'm just every don't typically think multi-year how And or clients from some has longer be when loans perspective? gathering the Got ingredient Are just We've asking just fair. there deposit to new but you picture sort When That's CRE any strategies not sauce the you much might you of your

Nick Place

on on Yes, types hire loan staff push it larger great of carry to we not to of that Ben, also those set other then Nick. a beyond comes our average made staff things on those to internally external us help things. where potentially help fees, to a that We've and its balances will into levels perspective income clientele lot that will -- with the space identifying could of going in C&I side only verticals. non-interest grow Obviously management tend those and a diversification deposit front strategic that's that treasury those progress book We've the on from question. a is but priority today. -- forth deposit That's also to verticals

on finding But internally are bullet we're continue them was there play take that core long-term the strategies we'll putting tons themselves of on a I of deposit the deposit, over in and wish silver to of to course right, these make effort time time. today short-term. you're on make progress a But lot out, progress that strategies those

Ben Gerlinger

Appreciate Thanks the guys. you. Got color.

Operator

call Jerry closing for back our Baack would concludes over to question-and-answer turn any This session. like I the remarks. to

Jerry Baack

positive last share our our very-very phenomenal and we're in to more environment for market want the a and results pleased that continue here today. be taking than was, challenging we here and and our clearly just brand place market year I time thank the with everybody is. it's about team to what but Obviously, we're their our is the

have it So appreciate and I day. a great

Operator

attending Thank Conference presentation. you concluded. now today's for has

disconnect. now may You

Bridgewater Bancshares (BWB) 27 Mar 232023 Q1 Earnings call transcript