Earnings call transcript Q2 2023

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Operator

Good morning, and welcome to the Bridgewater Bancshares 2023 Second Quarter Earnings Call. My name is Chuck, and I’ll be your conference operator today. [Operator Instructions]

Please note that today’s call is being recorded.

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

Justin Horstman

and everyone. Chuck, good you, morning, Thank

Joining President Chybowski, and today’s call Chief Baack, Chairman, are Jerry Chief me on Financial Executive Officer; Joe

Chief Officer; Officer. Shellberg, Chief Officer; Nick Jeff Credit Place, and Lending

moments, we quarter second In just results. a will an our financial overview provide XXXX of few

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

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

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

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

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

Baack.

Jerry Baack

overview highlighted the start for to encouraging everyone, as by second through we banking with you, quarter, thank a us joining and environment. is challenging Justin, today. this you, work trends continue some which I’ll of quick Thank

X.X%, of growth a rebound only total deposit pleased sheet pace on first we on X.X%, in loan outpacing continues of essentially see the but throughout our year, XX% the basis growth, the to the indicating, strong sides with both did balances aligning balance sheet. composition. rates core balance from we an growth balance which annualized Not of were increased nearly the increased sheet slow of been improvement quarter, deposit we’ve As growth the

pressure will margin quarter we as minutes. expected, on the compression a margin few industry. considerably during to basis costs a see note, continued talk rise interest this slow about continue Net the throughout funding more in the On of pace as a quarter. positive did Joe the month-over-month across

consecutive This and Our expenses as to remained second quarter. have the intentional shows has that slows. been the very ability revenue we well for controlled expenses growth manage

of Asset net charge-offs, assets quality low levels and remained levels loans. with no of stable nonperforming very watch pristine and substandard

to performance of be remain loan proactive quality very on front. portfolio. We and with this We and continue the pleased diligent our

day, of growth, is end translated all up over another now tangible this the quarter which year-over-year. At to of the book value XX%

XXXX. grown we fact, In book to have every quarter back going value tangible

want Before we to our minute detailed more more thoughts to share on I take business look results, provide a at some broadly. the a

remained staying that this we is clients of in believed always number front and one, vigilant have We have our priority commitment. in

our channels. Be knowledgeable visits expand social in-person new it see and prioritizing and responsive women that continue appreciate we seasoned off potential with lending opportunities, foothold a clients developing decision-makers model. unconventional as These further paying efforts treasury attendance actively onboard are through are events record reach, and we teams and service our or our clients our client at to events. are networking To

steps have refine also We taken our branch-light footprint. to

way Minneapolis location the to to remain with community. important Just more downtown committed serve branch last serving week, a Minneapolis clients. space our we market, we relocated to our an Sky is Downtown and more premium

in a us Metro fill down land quarter, last mentioned road. de area branch, In will a we future for addition, footprint as higher-growth the parcel our novo help recently East out of we a which purchased

in Despite thing We pool certain, have talent the one runs that deep. the Bridgewater’s know overall I market our is is today, uncertainty in for team. the and confidence that

As we I our firmly a develop, are grow, is goal. notice rank know the We and driving way workplace our ultimately experience the that Cities, employee clients have success. the running, about commitment productivity top thrive want for and ensuring years best engagement, I’m and our a satisfaction people to experience, that the X bankers the Twin the people to about in believe If think high. build Bridgewater community job we same grateful think their we happy, the difference. incredibly is client place

that, turn it With Joe. I’ll over to

Joe Chybowski

Thank Jerry. you,

declined Slide X. margin interest XX The to points $X.XX. net basis to Turning

pace As this expected, compression from slowed we quarters. the of prior

decelerated and peer this the funding component fees as core terms mind of current in Since to digits in the from and view pressure is margin relatively month-over-month June, on on basis interest the costs fourth points. to Fed’s environment This April, put interest Keep the are the moderated While is that slowing slowing. highlight the with down in the began across in rate to margins noise margin rate the in of experiencing compression loan of month-over-month conjunction industry, pressure continues rising mid-teens the a meaningfully we margin. mid-single exclude the XXXX, core we seen hiking the cycle. consistent basis had May quarter

a stand-alone to was month $X.XX quarter. interest for total full our of $X.XX the On basis, compared margin June the for net

This the the as the additional decline interest the as loan decline slow. as impacted continued pace fees of more pressure income. saw With net by a margin in quarter moderated we also pace remained of payoffs loan well during was a in growth,

it of yields fixed longer. Portfolio originations. shows higher repricing the will to loan of which a yields nature the typically have X% pace do cement will occur, foreseeable especially take coming our on the help to on yields managed for these X little The moved longer new means strong prepayment for components rate margin. for with to of with since in of we the structured and continue portfolio being especially loan future, various should higher penalties, range. Slide X% the so are originations which new Many our

we $XXX over and rate fixed year As million of ahead, efficiently over reprice million over adjustable $XXX the and scheduled next of loans variable look we have to rate floating. loans

yesterday. environment and and another including market rate given costs including While to funding the we margin a deposits, ongoing costs see many continued did that quarter the pace impact likely remain move throughout hike There higher, mix will have as to here, improved. remains are funding challenge for moderate our the that Funding other interest uncertainties alternatives. variables from and competition treasuries Fed

we loan growth, encouraged on firm upward trends, borrowings which reduced However, and including as of the giving are outlook positive the very we continued should to together repricing portfolio, several continue execute. core the deposit reliance

Turning to Slide X.

creates track revenue current We and as environment continue of demonstrate even to long revenue record profitability, the near-term headwinds. a

in majority expected, has revenue of revenue this past spread our As the over as is resulted the based. lower vast few quarters

the client as bounce fees, noninterest the of around FHLB primarily first income from depending from well on declined activity. which of which to last letter recur, side, fee quarter, as credit tend prepayment didn’t quarter, lower to On due income quarter-to-quarter nearly $XXX,XXX

Turning to Slide X.

industry-wide noninterest the increased the declining the first revision insurance expenses FDIC of X.X% of quarter. expense assessment in replenishing Our out quarter, methodology fund in very of just the well remain X.X% insurance expense controlled. included subsequent coming XXXX. and second The the After following deposit higher increase

Over good done asset of the growing a with consistently have in years, growth. we job line expenses

year. half insurance expect deposit coming would below see to our as While that expense technology, of likely and of half asset IntraFi such the expense of pace will growth, expenses we costs. pick people This the XXXX, are were back lower in come FDIC from in expense growth investments the all areas in growth first the impacting banks, as incremental as in and well up

in has and time, to highly to that are other revenue keeping mind slower We anticipate Over in to discipline, Even ratio they expect assets banks expense years. relative than low remain the the operating that maintain track with year model to increased have expenses our growing we this due range into in to line, continue efficiency case. a and assets prior efficient XX% ongoing the challenges. still our generally

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

Nick Place

Joe. Thanks,

the increased highlight Jerry on which during for As up X.X% were Slide was annualized. annualized deposits a core deposit can us, XX.X% see X. you Total quarter as of mentioned, the deposits, growth quarter, including

over As some toward subsided, focus of the noise years. the first in bringing and strategy we growing quarter from relationships return to consistent the few past our were with our client existing balances new able

In fact, including quarter noninterest-bearing, deposit across saw increased annualized. we all categories our X% during of which the over increased balances

growth loan-to-deposit of across were exceed XXX%. other range the XX% shift allowing However, the toward interest-bearing us encouraged ratio accounts, see core growth to to lower within deposit deposit are continued XXX%, our has the similar banks target during our to We back to industry. seeing quarter, mix loan to to what overall

Finally, only end end deposits optimize down as insurance coverage FDIC XX% the at were last our uninsured at leverage continue the and IntraFi of second of we of to XX% from quarter, year the the network.

X. Slide to Turning

we of expected in line basis, to the a in a pace grown we the quarter the loans second is X.X% pace, expected, at saw year-to-date which with have moderate annualized On annualized. As growth X.X% to year. loan for to continue what

existing front of are demand still good These ago, than plenty remains lower include we what referrals expanding we opportunities. seeing new high-quality relationships client and to clients. overall loan were opportunities Although a in year getting of

We use and participation will of sales. through continue selective further to loan manage our pricing growth

for expect up becomes the growth recent near back term, and there as are continue on historical the we favorable loan momentum us While side. appropriate the as the in opportunities funding to ramp the below we environment growth levels more when to remain

by draws On you the increase driven loans. was previously continues construction loan see quarter development on driven growth to during This be Slide by portfolio. the and can originated XX, construction our

the these we other of As balances we our across portfolio. construction comfortable these have migrate will complete Overall, remain many with portfolios. phase, their loan diversification projects to

XX. Slide to Turning

second to XX% and continue totalled the which year-over-year. a are of declined year-over-year. million pace payoffs reduced see We originations $XX slower in new the XX% which Offsetting down slower quarter, paydowns, originations,

pick seeing pipeline rates rates create to higher payoff originations of as some to back up could new into at started forward. However, reinvest market interest going opportunity our these stabilize. we This an have are payoffs

The portfolio also mentioned, now year, including As over loan managing of selling including million million, participation growth increased over sold un-funded participations each million nearly have been commitments. year-to-date. our new past participations and the on has originations, $XXX by $XXX quarter $XXX we previously

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

With that, I’ll turn it over to Jeff.

Shellberg Jeff

Nick. Thanks,

Turning XX. to Slide

continue asset remained for charge-offs net nonperforming of the quality total of making at assets very June. the X.XX% to essentially consecutive at feel XXth assets as low no just about end levels, We up had good our We quarter.

loans no past XX charge-offs have XX, net fact, In since XX XXXX, of and days to have had we $XXX,XXX cumulative just we due.

of credit and our All is consistent to risk largely standards, measured selection, credit due experienced teams. lending underwriting this and active oversight

credit any At this point, of still we seeing early are weakness. not signs

We with monitoring do at the staying clients some and engaged our as expect are portfolio normalization actively point. we

credit remain was which well unfunded $XXX,XXX was The reserved loans. mostly we provision $XXX,XXX offset Finally, X.XX% provision losses commitments. negative on for loans of a at gross for by

as Slide both from can the total substandard Overall, portfolio Substandard good positioned risk total loans C&I of evenly declined capital. and our and pass. one the of the over modestly and believe upgraded X% than during are the split loans you is into less was of relationship now about loans and X% between On CRE make we XXXX. pretty just XX, that and see half of included feel well that watch back substandard to it profile This move we up that quarter.

nonowner-occupied rate, and fixed book portfolios. more CRE XX, our Slide repricing CRE on majority we risk provide which to our The of office helps a from is Turning some information standpoint.

cash We that next loans recommend actively XX loan-to-value this if and necessary. solutions in The over engage possible to flow portfolio have identify rates to the clients with average of process, or repricing early was maturing XX%. current months stream continue the

totaling $XX is exposure, As includes loans. of X% of quarter end, which business This central loans nonowner-occupied total million. located office four in CRE only million about districts we of had $XXX

portfolio given and good the diversified suburban average lower closely, office We loan and base monitor continue we exposure. Midwest to outlook client primary about amount, the this feel

the since we Overall, portfolios quarter, any haven’t these noticed material in changes last

to and well. continue they perform

to now it back turn I’ll over Joe.

Joe Chybowski

Thanks, Jeff.

Slide to XX. Turning

nearly similarly you’ll strong $X a at our several and robust the deposits. the second the actions position. on- with to remain As X.X times of uninsured level liquidity in reinforce in quarter the we recall, first liquidity, of We sheet position our end of already a off-balance strong took billion quarter

new bank the or the not We have FRB term any utilized discount funding borrowings program. window from

and growth quarter. another the value our second $XX.XX capital per tangible highlights to XX Slide increased value strong share ratios. book Tangible in book X.X%

consistently to various an continue demonstrate and to We downs. market grow ups value book through tangible ability

a to capital including equity, an our tangible saw increased increased quarter, From which all X.XX% during of capital increase CETX, X.XX%. common in to from the X.XX% we standpoint, ratios in which from X.XX%

over We of are focused back ratios these our retention. continued loan growth time on and pace continuing given up more to managed earnings build

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

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

trading, prudent a the program Board evaluate was have based stock where potential conservative the given with a it of remain felt evaluate during the future We’ll to repurchases repurchase second by on persistent continue we share $XX million to also We capital repurchasing however, was environment. in our the variety uncertainties factors. the for We in that XXXX. quarter shares approved stock was did the with

with balance position diversified growth have position and trends well believe these to we been seen, including pleased just growing We positive sheet recent all liquidity and forward. have deposit of name we a capital us few. our very levels, Overall, composition, the moving

of Turning growth to I’ll level low XX. high what to into in the summarize moderate which our the we seen have single-digit pace near-term loan far is double-digit expectations. XXXX, on so the to year-to-date. Coming we our thoughts year, expected to Slide

back the we would over be high loan likely we better growth the expect focus to year, Over the growth single-digit in core as with time. deposit on growth continue range half aligning to of

down to target first XXX of range in it we in the quarter, loan-to-deposit to XX briefly Our above XXX our ratio the able back bring quarter. second moved were in but

margin interest be factors. continues various net to given the to The difficult predict

the to However, back the the would interest deposit of core of mentioned slowing growth our compression of with payoffs. the pace rates, the earlier, loan expect of we the recent and month-over-month year. over trends curve Depending we half shape continue margin the the and path pace yield of on

an in the tangible our in first and expect the the controlled we standpoint, expense going insurance investments an From specifically as And build costs. ratios a retained. very I as and capital of moderates to FDIC expense and well in pickup while growth IntraFi our common continue as look well related incremental do to and forward expenses from we will to half half, were mentioned, deposit equity earnings back increased people as year, standpoint, are loan CETX technology,

over it turn I’ll back now to Jerry.

Jerry Baack

Slide in XX. beginning XXXX, and though Thanks, them. dramatically industry year, on areas priorities each of we Joe. at the strategic progress midway focused we changed still the Finishing off banking on on of we this the identified Even are good has through have the the year are made

alignment growth We growth. deposit see recently our between managed have loan sheet and to core more and started better balance growth

the able While this we growth assets, been past typically growth. expenses manage expense in with grow over we line have the well year, within of to asset pace

we to road are help better actively to finally, enhancing and And expand us the across the our C&I portfolio. manage over steps footprint our asset strategic including credit branch time. function taking down our ability to taking addition, position resulted has In quality in loan superb risk actions

for With we will questions. that, open up it

Operator

And will the come from go Nosal Instructions] Sandler. question Brendan with [Operator Piper Please ahead. first

Brendan Nosal

Good guys. morning,

Jerry Baack

Brendan. Morning,

Brendan Nosal

reasonable a simple moving clear Just to are on if many sense. of Slide kind to math margin kind I of trying a do maybe range here, range in of if there progression guess of so outlook. months, moderate is of over next — it really for in curious I somewhere Indiscernible I finer put taking margin — next of start get it the margin quarter. pressure make off continuing expectations that tough just that get the Just to third and from point parts a X quarter the the to monthly But the X the that exercise

Joe Chybowski

Hey, Brendan, this is Joe.

said, you project precisely certainly as I acknowledge. of think margin ability as the the is the to I difficult, mean, you trajectory

slowing month-over-month think of I moderation and continued pleased we’ve with compression. the been

in for remix funding the is second with certainly quarter think I the margin. beneficial

of hiking the Fed that. moderation cycle also think the has I benefited

as reprice, the continues beneficial. to pass, that’s think loan time obviously I continues and to book

will is about the but number with trends. talk so precise we’re And pleased difficult, to the I say

is And of signs add as the certainly thing past, loan too I book, about the margin twofold. which seeing activity in we’ve another are in we beneficial to think I’ll is payoff earlier talked potential

loan I XX contributed fees to basis about think have loan points historically, yield. our

of And so a think those you those fees any unrecognized when about payoffs of accelerate the payoffs, if recognition deferred obviously, have will payoff outstanding, fees.

I mean, fees XX about yield. you the were loan only And quarter, second basis think of so points loan the if

a So catalyst. is that certainly

are that of of payoffs say inside And yields potential on the deals I’d other where originating is, at obviously, thing those most we’re today.

margin well. that’s So accretive certainly as

kind the is feel like all that you long couple stabilization haul, possible. over if of think together, So I we

pleased continued We’re with the slowing. and moderation

Brendan Nosal

of Got funding equation. side Maybe turning it. right. the to All the

which really Maybe see. guys job CDs, cost at and about those talk on Can though, are swap? growing broker, how nice core quickly You did higher those kind a the quarter, to noncore term is of rate on product what you nice funding guys FHLB. for just this then should sheet the that can you pieces, lower the reprice putting really

Joe Chybowski

both are be say careful to because cycle. obviously, Yes, we liability I’d into sensitive this we’re about trying hiking rate really coming sides

to then the don’t you that like so rate when change now in want there’s And the and feel ultimately, materially hiking a you cycle moderation curve.

profile. want we think materially change don’t I the to So

always we’re So balanced we as have been. being definitely

curve X of out some So years. to the X that’s placing that

about I we maintaining optionality think really the extent diligent the been to we’ve can.

advantage So in FHLB options well in of the the markets. as as callable brokered taking market,

further the linked markets, itself derivatives curve, and short The the cycle add, obviously side these while that’s brokered that the the with which for leveraging which diligent has CD asset of been something might us. the the I’d of more term, some boded and too, is of be we’ve aligns is sheet, balance brokered other derivative directly out been the well obviously to CDs is thing this term throughout

So it’s options. a terms of myriad and

think we we see really for – the sit to I we stay of it’s the rate for half And whether Fed rates all here try ’XX. longer or environments, balanced in back cutting

give I think stay to we certainly don’t and want want overreact, options. balanced, we to it’s – us

Brendan Nosal

Yes.

sense. for back. I makes That step One Okay. me before more

think so participation piece, of much guys us I manage kind what just I’m prudently doing for do don’t it’s production on that? but finally, – through of Is of your option overall once it on walk just you component], is there And you’re sheet the just to gone. piece? Is own I the there back wondering on it’s Just are? there there’s the kind what maybe of sheet. economics ever balance bring that [gain the that sheet then balance off moving your or that to can to the get is. servicing mean, you gone,

Nick Place

We certainly individual cases, Yes. higher at fee Brendan, specific Every depending do this transaction, some a the very, that earn will on negotiated service on lower. servicing terms participation or sale servicing a the that that of is Nick. portfolio be In average. is on low and margin. fee individually very

if servicing on a or participation be may high-yielding a that fee larger asset that. Sometimes, get to we’re on selling a it’s able

whole but earn specifics. exact we it’s on tend number of probably follow I that area, average can know up the and don’t to with sort eighth percent the of portfolio, over in the that we the

sales. that have we on banks they your Now a we relationships on lot I back sell I in with too. sheet. are of balance participation these mean, bringing that participations question mean

But can the we the bring – contractual back we up that pays have pay and as and back any also [ph] ability stuff up. sheet. free to off back relend don’t onto to participation certainly, So balance loans that off,

Brendan Nosal

the Thanks Nick. right. for All it. Got answer,

Operator

come Rulis Davidson. go The next will ahead. Please Jeff with question from D.A.

Jeff Rulis

Thanks. Good morning.

a on Just rate on question the spot costs. deposit the

that you is the that of of you where peaking I Thanks. If X.XX see then guess, do at beta, And over cycle? out end have question kind the the to relative that at quarter, looking average the two, one. at of

Joe Chybowski

Hey, Jeff, on deposit spot this Joe. X.XX. is the rate Yes, was the side

far pleased at in side, beta we’ve at, the beta think where I is the cycle. been the at On this

to project difficult think that cycles compare is I really to prior ultimately to that peaks at. where and

that good core – while deposits I obviously when But thus we think contributes feel performed base, about we our more about how think I the we we deposit broker far. to it’s increasing. leverage think –

it’s So we’re far. – it’s performed but thus pleased it’s difficult to how with predict, I think

Jeff Rulis

the of of Is say month-to-month deceleration. kind the the slowing? to cost mirrored Safe rate you that seeing margin X.XX at – spot that deposit are is increase

Joe Chybowski

Yes.

earlier, comes mean, of growth the in we second certainly I borrowed as at think more the in deposit translated inside talked just the quarter that levels remixing the I level. book, core of wholesale or overnight about

to month-over-month contributed the has compression. margin that the slowing of So

Jeff Rulis

to Interested that moving Got leg targets. the kind mean, I guess back capital you I of a as And pieces, to levels to talk relative you as And could Jerry, balance have you just I and sense and of do you it. levels? those capital. how If the options? but in that, in side, consider CETX guys M&A for capital I the the buyback those if to lot TCE in-house on that maybe consider and transactions asked

Jerry Baack

in more than structured, of to will I certainly we the but year. Yes. that road, something if and continue the certainly access on anything deal. the we I current to it guess, to happen environment how transaction be pipeline continue down just have fund not would and we of I said, that this capital M&A right be for depends acquisitions potential front mean, in strategically the would think

Jeff Rulis

given just Okay. And anything in-house? those, levels, environment. Or targets grow a on that a is effort of the the sort that capital concerted to is

Jerry Baack

going not to just trying like specific tell we’re comfortable percentage specific we’re don’t – number growing I But it think that achieve on the throughout have a we a you to a year. I’m still basis.

Jeff Rulis

step I’ll back. enough. Fair Okay.

Operator

Ben with Please from ahead. Group. will the question next Gerlinger go Hovde The come

Ben Gerlinger

dig solid morning, in everyone. Hi. was little quarter. curious, a kind pretty Good of deposits, deeper you is I a on

Was good something secret deepening in core kind just quarter. rates of new niche? and of up to this one you why Or so relationship that think kind a came that you of is management the kind basket past Lisa once? so months It uptick. XX I gift all was quarter When a call this about good a are think deposits. trend? starting you at curious some a adding Just at on deserves in Maybe point of just this this was when relationship relative much? a and

Nick Place

it’s story to Yes, since bullet don’t what there’s founding, a Nick. think here. our Ben, has similar our been silver I that

I of think everything. a mix it’s great

we a client to think the front of cases, some at lot I through existing in quarter, had moved of repatriating some traction on our that in staying had and treasuries deposits some maybe in relationships XXXX. point

I they phenomenal relationships. new our bringing those new on loan bankers back best in with we wins of Jerry the So to mean and help. team to of opportunities market, in have like front client on continue some I some client deposit prepared those quarter and and the in in of mentioned feel I get continue remarks, we the deposit the great comments. balances echo and have side,

So feel momentum like we the a today, continue I together. with to I things really carry coming the like it’s forward future. that have us a into feel culmination And of we of can lot just

answer It’s it. a folks from there working heavy there. isn’t group So lift a of single a big on

Ben Gerlinger

an years — you so, or vantage in months, banks — seen Obviously, anyone from the curious, serious a past bigger from on commercial rates can the the cap price issue of XX association with has? you. the bit picture, Got concern worked indiscernible with term to have becoming Not risk over just you’ve point, it trying of same media work terms past, think your of sense kind a what’s do guys to have portfolio. kind what more little home. get your And reality real commercial XX watching that banking call conversation from news Jerry, of articles? the of over and then degradation you in the relative the suit of the estate or you see that the kind people of — you on I’m — regulators level estate Indiscernible real the issue that just a headline of over

Jerry Baack

me. They’re Ben. Well, exam I’ll office is mind portfolio it. in certainly I’ll questionnaire regulators. for with on am, every thanks come He’s top and I real go exams. doing XX with for about me, a like conference than their for with and and we days. our the commercial of questionnaire but Jeff had pre-exam call Yes, front. it’s aging real older here a them one what estate the on looks a now commercial of estate like upcoming No,

is guarantor that’s specifics, down in different. comes So deal to, I the property And or Orlando or it’s in them it I the single behind individualized. Minneapolis there, It’s whether back mean, And mean, actual It’s it’s you is, flow, just know every that right? the saying Miami to the come secured it’s I wherever or it. like we loan. collateral the I’m which cash don’t it’s have general, tenants. individual

just it the throwing media category, to and So is just case. the the – everything not into seems one that’s me like

things the but it, see way is probably that, that’s probably So on and better I the the underwrite does. that Jeff, thoughts. follow-up I do think the media you think media jumping don’t examiners side overall we we the that? explain, than have way our my just on any of

Jeff Shellberg

Yes. agree. No, I would

whether And performing corridor, that in the in property. the that particular things – A, everything underwrite that analysis with missing business It’s there brush. is you correctly if think it’s property, central each for a Class story suburban sponsor. each is you Class you’re if is from central decent what it’s you’re either business B. the painted that particular can whole I And have a gets corridor, same I think

Ben Gerlinger

fair. Got That’s you.

but well as it get we fight think I the on it’s side, tough sell to

appreciate color. the sometimes. I

Operator

go question-and-answer our would Baack for sir. Mr. ahead, to turn concludes back This to Jerry I conference closing any Please the remarks. over session. like

Jerry Baack

our joining call for everyone, Thanks, today.

trends We during saw with a our of but are in the we quarter. remains environment the challenging, many market. have The brand pleased strong we very

today. we very about remain network future. is share. Thanks much time growing, the continue to client take I so optimistic your Our market and for

Operator

concluded. you now presentation. for Thank has conference attending The today’s

You may disconnect.+ now

Bridgewater Bancshares (BWB) 27 Jul 232023 Q2 Earnings call transcript