Bridgewater Bancshares Inc (BWB) 2023 Q3 法說會逐字稿

Good morning, and welcome to the Bridgewater Bancshares 2023 third-quarter earnings call. My name is Debbie, and I will be your conference operator today. (Operator Instructions)

早安，歡迎參加 Bridgewater Bancshares 2023 年第三季財報電話會議。我叫黛比，今天我將擔任你們的會議操作員。 （操作員說明）

Please note that today's call is being recorded. At this time, I would like to introduce Justin Horstman, Director of Investor Relations, to begin the conference call. Please go ahead.

請注意，今天的通話正在錄音。現在，我想請投資者關係總監賈斯汀·霍斯特曼（Justin Horstman）開始電話會議。請繼續。

Thank you, Debbie, and good morning, everyone. Joining me on today's call are Jerry Baack, Chairman, President, and Chief Executive Officer; Joe Chybowski, Chief Financial Officer; Jeff Shellberg, Chief Credit Officer; and Nick Place, Chief Lending Officer.

謝謝你，黛比，大家早安。與我一起參加今天電話會議的還有董事長、總裁兼執行長 Jerry Baack；喬‧切博斯基 (Joe Chybowski)，財務長； Jeff Shellberg，首席信貸官；和首席貸款官 Nick Place。

In just a few moments, we will provide an overview of our 2023 third-quarter financial results. We will be referencing a slide presentation that is available on the Investor Relations section of Bridgewater's website, investors.bridgewaterbankmn.com. Following our opening remarks, we will open the call for questions.

稍後，我們將概述 2023 年第三季財務業績。我們將參考 Bridgewater 網站 Investors 關係部分的幻燈片演示文稿，investors.bridgewaterbankmn.com。在我們的開場白之後，我們將開始提問。

During today's presentation, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. We caution that such statements are predictions and that actual results may differ materially.

在今天的演示中，我們可能會對未來事件或公司未來財務表現做出預測或其他前瞻性陳述。我們提醒您，此類陳述只是預測，實際結果可能會有重大差異。

Please see the forward-looking statement disclosure in our 2023 third-quarter earnings release for more information about risks and uncertainties which may affect us. The information we will provide today is as of and for the period ended September 30, 2023, and we undertake no duty to update the information.

請參閱我們 2023 年第三季財報發布中揭露的前瞻性聲明，以了解更多有關可能影響我們的風險和不確定性的資訊。我們今天提供的資訊截至 2023 年 9 月 30 日，我們不承擔更新資訊的義務。

We may also disclose non-GAAP financial measures during this call. We believe certain non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors to help them understand the company's operating performance and trends and to facilitate comparisons with the performance of our peers.

我們也可能在本次電話會議期間揭露非公認會計準則財務指標。我們相信，除了相關的公認會計準則衡量標準之外，某些非公認會計準則財務衡量標準還可以為投資者提供有意義的信息，幫助他們了解公司的經營業績和趨勢，並便於與同行的業績進行比較。

We caution that these disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP. Please see our 2023 third quarter earnings release for reconciliations of non-GAAP disclosures to the comparable GAAP measures.

我們提醒您，這些揭露不應被視為替代根據 GAAP 確定的經營績效。請參閱我們的 2023 年第三季財報，以了解非 GAAP 揭露資訊與可比較 GAAP 衡量指標的對帳情況。

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

我現在想將電話轉給橋水基金董事長、總裁兼執行長 Jerry Baack。

Thank you, Justin, and thank you everyone for joining us today. I'll start with a quick overview of the third quarter, which had several encouraging trends.

謝謝賈斯汀，也謝謝大家今天加入我們。我將首先快速概述第三季度，其中出現了一些令人鼓舞的趨勢。

First, after net interest margin compression began to slow in the last quarter, we're pleased to begin seeing the stability in the margin during the third quarter. While the margin declined 8 basis points quarter over quarter, we saw signs of stabilization on a month-to-month basis throughout the quarter. Joe will talk more about the margin dynamics shortly.

首先，在上個季度淨利差壓縮開始放緩之後，我們很高興看到第三季淨利差開始穩定。雖然利潤率環比下降 8 個基點，但整個季度我們看到了逐月穩定的跡象。喬很快就會多談論利潤動態。

Second, given the prolonged higher interest rate environment, we've been focused on enhancing our balance sheet composition to set us apart for longer-term profitability and success. Concentrated efforts are being made to build our deposit base, reduce our reliance on higher cost borrowings, and slow our pace of loan growth in the near-term. For the second consecutive quarter, we saw improvements in our overall funding base as core deposits increased 11% on an annualized basis and total borrowings declined 30% from the second quarter with no overnight borrowings on quarter end.

其次，考慮到長期的高利率環境，我們一直致力於改善我們的資產負債表結構，以使我們在長期盈利能力和成功方面脫穎而出。我們正在集中努力建立存款基礎，減少對高成本借貸的依賴，並在短期內放慢貸款成長速度。我們的整體資金基礎連續第二季得到改善，核心存款以年化計算成長 11%，總借款較第二季下降 30%，季末沒有隔夜借款。

While we have determined a long track record of generating robust and profitable loan growth over the years, we have intentionally slowed the pace of loan growth in 2023 and actually saw balances decline slightly in the third quarter. While this was due in part to an uptick in payoffs and pay downs during the quarter, we are also being more thoughtful about our growth in the current environment.

儘管我們多年來一直保持著強勁且有利可圖的貸款成長的長期記錄，但我們有意放慢了 2023 年的貸款成長速度，實際上第三季的餘額略有下降。雖然這在一定程度上是由於本季支付和支付減少的增加，但我們也對當前環境下的成長更加深思熟慮。

As a result, we expect more limited loan growth in the near-term combined with growing deposits and capital, reducing the loan deposit ratio and stabilizing the net interest margin. This will give us the ability to generate profitable growth when the environment becomes more favorable.

因此，我們預期短期內貸款成長將更加有限，同時存款和資本不斷成長，貸存比將下降，淨利差將趨於穩定。當環境變得更加有利時，這將使我們有能力實現獲利成長。

Bridgewater has always been a growth engine, and we certainly don't see that changing. However, we believe being more selective today will position us better for the long-term.

橋水基金一直是成長引擎，我們當然認為這一點不會改變。然而，我們相信，今天更具選擇性將使我們在長期內處於更好的位置。

Expenses remain very well controlled on a year-to-year basis. However, as expected, we saw an increase in non-interest expense in the third quarter, primarily related to ongoing investments we're making in our people.

費用逐年保持良好控制。然而，正如預期的那樣，我們第三季的非利息支出有所增加，這主要與我們對員工的持續投資有關。

Lastly, asset quality remains superb with just 1 basis point of net charge-offs, consistently low levels of non-performing assets, and stable levels of watch and substandard loans. While we continue to be very proactive and diligent on this front, we remain pleased with the performance and quality of our loan portfolio.

最後，資產品質仍維持良好，淨沖銷僅1個基點，不良資產水準持續較低，觀察貸款和次級貸款水準穩定。儘管我們在這方面繼續非常積極和勤奮，但我們對貸款組合的表現和品質仍然感到滿意。

In addition to these encouraging trends, our overall focus remained on driving steady, tangible book value growth for our shareholders, which we have done for 27 consecutive quarters. In fact, only 12% of banks between $3 billion and $10 billion in assets have been able to grow tangible book value each of the past eight quarters.

除了這些令人鼓舞的趨勢外，我們的整體重點仍然是為股東推動穩定、有形的帳面價值成長，我們已經連續 27 個季度這樣做了。事實上，在過去八個季度中，資產規模在 30 億美元至 100 億美元之間的銀行中，只有 12% 的有形帳面價值能夠成長。

Before I hand it over to Joe, I want to take a minute to share some additional insights into other activities happening across the bank. The BWB culture remains a focus. Engaged team members translate to better service, less turnover, and ultimately, a more committed workforce.

在將其交給喬之前，我想花一點時間分享一些關於銀行內發生的其他活動的額外見解。 BWB 文化仍然是焦點。敬業的團隊成員可以提供更好的服務、減少人員流動，最終打造一支更忠誠的員工隊伍。

We see great engagement with our team members. Participation in events including health and wellness, mentorship, DE&I, and volunteering remains high; and turnover remains well below industry norms. And we continue to receive recognition locally and nationally for our culture.

我們看到團隊成員的積極參與。對健康和保健、指導、DE&I 和志願服務等活動的參與度仍然很高；營業額仍遠低於業界正常水準。我們的文化繼續獲得當地和全國的認可。

In addition, we are continuing to proactively engage with existing and potential clients, which includes expanded outreach to targeted verticals in C&I. We indicated at the beginning of the year that C&I was a focus for us and we're making inroads in certain niche areas where we have strong connections, like women-led businesses and entrepreneurs and companies running on the EOS operating system.

此外，我們將繼續積極與現有和潛在客戶接觸，其中包括擴大對工商業產業目標垂直領域的覆蓋範圍。我們在今年年初表示，C&I 是我們的重點，我們正在某些我們擁有強大聯繫的利基領域取得進展，例如女性領導的企業、企業家以及在 EOS 作業系統上運行的公司。

Networking is something we do better than anyone, and we are using the strength to extend outreach into these opportunities. While we are still in the early stages, we have had early success in creating new C&I opportunities.

網路是我們比任何人都做得更好的事情，我們正在利用這一優勢來拓展這些機會。雖然我們仍處於早期階段，但我們在創造新的工商業機會方面已經取得了早期成功。

Being efficient has always been important to BWB. Investments in technology, specifically streamlining workflows, are creating efficiencies across the business. Investments in our project management function are ensuring we execute effectively on large internal initiatives and reap the rewards as soon as possible.

對 BWB 來說，高效能始終很重要。對科技的投資，特別是簡化工作流程，正在提高整個企業的效率。對專案管理職能的投資確保我們有效執行大型內部計劃並儘快獲得回報。

While the overall environment remains challenging for many banks, I remain very optimistic on how Bridgewater is positioned moving forward. With that, I'm going to turn it over to Joe.

儘管整體環境對許多銀行來說仍然充滿挑戰，但我對橋水基金的未來定位仍然非常樂觀。有了這個，我要把它交給喬。

Thank you, Jerry. Turning to slide 4, the net interest margin declined just 8 basis points to 2.32% for the third quarter. This compared to our September standalone margin of 2.30%, which was down just three basis points from the month of June standalone margin of 2.33%.

謝謝你，傑瑞。轉向投影片 4，第三季淨利差僅下降 8 個基點至 2.32%。相較之下，我們 9 月的獨立利潤率為 2.30%，僅比 6 月的 2.33% 的獨立利潤率下降了 3 個基點。

Even more encouraging is the margin showed signs of stabilization on a month-to-month basis during the quarter. The chart in the bottom right shows the trend in monthly core margin compression, which excludes loan fees as they can be lumpy from month-to-month.

更令人鼓舞的是，本季利潤率按月顯示出穩定的跡象。右下角的圖表顯示了每月核心利潤率壓縮的趨勢，其中不包括貸款費用，因為貸款費用可能會逐月波動。

After seeing several months of mid-teens margin compression in late 2022 and early 2023, we saw a gradual slowing begin in the second quarter of 2023. This trend continued into the third quarter with the core margin remaining relatively stable throughout July, August, and September. This was driven by a moderation in rising funding costs as core deposits grew and borrowings declined, coupled with the continued slow but steady increase in earning asset yields.

在2022 年末和2023 年初經歷了幾個月的十幾歲左右的利潤率壓縮之後，我們看到2023 年第二季度開始逐漸放緩。這種趨勢持續到第三季度，核心利潤率在整個7月、8 月和2023 年保持相對穩定。九月。這是由於核心存款成長和借款下降導致融資成本上昇放緩，以及生息資產收益率持續緩慢但穩定成長。

We would expect the quarterly margin to stabilize over the near-term as the compression continues to slow, keeping in mind that funding costs are and will remain under pressure given other market alternatives. As we've mentioned in the past, the margin outlook is dependent on several factors including future changes in interest rates, the shape of the yield curve, and the pace of core deposit growth.

我們預計，隨著壓縮繼續放緩，季度利潤率將在短期內保持穩定，同時考慮到其他市場替代方案，融資成本現在並將繼續面臨壓力。正如我們過去所提到的，保證金前景取決於幾個因素，包括未來利率的變化、殖利率曲線的形狀以及核心存款成長的速度。

Slide 5 shows the various components of the margin. Portfolio loan yields moved higher and should continue to do so for the foreseeable future. As we look ahead, we have over $500 million of fixed and adjustable rate loans scheduled to reprice over the next year and nearly $600 million of variable rate loans efficiently floating.

投影片 5 顯示了邊距的各個組成部分。投資組合貸款收益率走高，並且在可預見的未來應該會繼續走高。展望未來，我們有超過 5 億美元的固定利率和可調利率貸款計劃在明年重新定價，還有近 6 億美元的浮動利率貸款有效浮動。

Another factor here is loan fees, which have had around a 10-basis-point impact on the aggregate portfolio loan yields over the past few quarters. However, this is down meaningfully from our 30-basis-point run rate in mid-2022 as payoffs have declined and subsequent deferred loan origination fee realization as well.

這裡的另一個因素是貸款費用，在過去幾個季度中，貸款費用對總投資組合貸款收益率產生了約 10 個基點的影響。然而，這比我們 2022 年中期 30 個基點的運作利率顯著下降，因為收益下降以及隨後的貸款發放費實現也被推遲。

In addition to loan yields, the yield on our securities portfolio has also continued to increase, up 15 basis points from the second quarter to 4.39%. While loan growth has been more muted, we have continued to grow the securities book with period-end balances up 11% annualized during the third quarter. Keep in mind that we do not have any health and maturity securities.

除貸款收益率外，我們的證券投資組合收益率也持續上升，較第二季上升15個基點至4.39%。儘管貸款成長較為溫和，但我們的證券帳簿仍持續成長，第三季期末餘額年化成長率為 11%。請記住，我們沒有任何健康和到期證券。

While rising funding costs continued to outpace earning asset yields, the rising cost of funds has slowed meaningfully. This was largely due to strong core deposit growth and a decrease in our reliance on borrowings and overnight money.

儘管融資成本的上升持續超過獲利性資產收益率，但資金成本的上升已顯著放緩。這主要是由於核心存款強勁增長以及我們對借款和隔夜資金的依賴減少。

In fact, our overall funding costs increased just 19 basis points in the third quarter compared to a 50-basis-point increase in the second quarter. That said, funding costs are still under pressure, and we expect to see deposit costs continue to move slowly higher, given competition from other bank and non-bank alternatives and the Fed's uncertain interest rate outlook.

事實上，我們的整體融資成本在第三季僅增加了 19 個基點，而第二季則增加了 50 個基點。儘管如此，融資成本仍面臨壓力，鑑於來自其他銀行和非銀行替代方案的競爭以及聯準會利率前景的不確定性，我們預計存款成本將繼續緩慢上升。

Turning to slide 6, we have demonstrated a long track record of strong revenue and profitability. While this has been a more challenging revenue environment due in part to our spread-based model, we saw signs of stabilization in the third quarter both in terms of net interest income and total revenue. Non-interest income increased in the third quarter primarily due to $493,000 of FHLB pre-payment income, similar to what we saw in the first quarter.

轉向幻燈片 6，我們展示了強勁的收入和盈利能力的長期記錄。雖然收入環境更具挑戰性，部分原因是我們基於利差的模式，但我們在第三季看到了淨利息收入和總收入穩定的跡象。第三季非利息收入的成長主要得益於 FHLB 預付款收入 493,000 美元，與第一季的情況類似。

Turning to slide 7, expenses have remained very well controlled year to date. After a 6.7% decline in the first quarter and an increase of just 1.4% in the second quarter, we indicated that we would see an increased pace in the second half of the year. This was the case, as non-interest expense increased 6.7% in the third quarter, the majority of which was related to incentives across the entire employee base.

轉向幻燈片 7，今年迄今為止，支出仍然得到很好的控制。在第一季下降 6.7%、第二季僅成長 1.4% 之後，我們表示下半年將成長。事實就是如此，第三季非利息支出成長了 6.7%，其中大部分與整個員工群體的激勵措施有關。

Historically, our non-interest expense growth has tracked closely with asset growth. On a year-to-date basis, non-interest expense in 2023 is up just 6% from 2022, below our year-over-year asset growth of 10.4%.

從歷史上看，我們的非利息支出成長與資產成長密切相關。年初至今，2023 年的非利息支出僅比 2022 年成長 6%，低於我們 10.4% 的資產年增率。

Even with our expense discipline, our efficiency ratio has increased into the mid-50% range due to the ongoing revenue headwinds. We still maintain a highly efficient operating model relative to other banks and expect that to remain the case. Overall, we feel good about our ability to control expenses while still making key investments in the business and our people.

即使我們遵守支出紀律，由於持續的收入逆風，我們的效率比率已升至 50% 左右。相對於其他銀行，我們仍然保持高效的營運模式，並預計這種情況將持續下去。整體而言，我們對自己控制開支的能力感到滿意，同時仍對業務和員工進行關鍵投資。

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

有了這個，我會把它交給尼克。

Thanks Joe. Turning to slide 8, deposit growth was a highlight for the second consecutive quarter. Total deposits increased 10.8% annualized during the quarter, including $70 million of core deposit growth, or 11% annualized. To supplement our core deposit growth, we added $27 million of broker deposits consistent with the funding strategy we've had in place since the bank was founded. When combined with core deposits, this helped to offset the liquidation of $195 million of higher cost overnight borrowings during the quarter.

謝謝喬。轉向幻燈片 8，存款成長是連續第二季的亮點。本季存款總額年化成長 10.8%，其中核心存款成長 7,000 萬美元，年化成長 11%。為了補充我們的核心存款成長，我們增加了 2,700 萬美元的經紀人存款，這與我們自銀行成立以來制定的融資策略一致。與核心存款相結合，這有助於抵消本季清算的 1.95 億美元成本較高的隔夜借款。

In terms of our deposit growth outlook, it's important to remember that the nature of our deposit base results in longer client acquisition and onboarding times. We remain confident in our ability to continue deposit momentum over time as our pipelines remain strong. However, deposit growth can fluctuate quite a bit from quarter to quarter with the growth often not being linear. That said, over the past two quarters, we have added over $115 million of core deposits, which speaks to the strength of our bank, our brand in the Twin Cities, and the relationships we have developed with our clients.

就我們的存款成長前景而言，重要的是要記住，我們存款基礎的性質會導致客戶獲取和入職時間更長。由於我們的管道仍然強勁，我們對隨著時間的推移繼續保持存款勢頭的能力充滿信心。然而，每季的存款成長可能會出現相當大的波動，而且成長通常不是線性的。也就是說，在過去兩個季度中，我們增加了超過 1.15 億美元的核心存款，這證明了我們銀行的實力、我們在雙城的品牌以及我們與客戶建立的關係。

Turning to slide 9, loan growth came in lower than we were expecting as balances declined 1.5% annualized during the quarter. This was largely due to higher than expected payoffs and pay downs, which increased $67 million from the second quarter. Had payoffs and paydowns remain consistent with second-quarter levels, loan growth would have been 5.6% annualized, much closer to our expectations.

轉向投影片 9，貸款成長低於我們的預期，本季餘額年化下降 1.5%。這主要是由於高於預期的支付和減薪，比第二季增加了 6,700 萬美元。如果支付和還款保持與第二季水準一致，貸款年化成長率將為 5.6%，更接近我們的預期。

However, as Jerry mentioned earlier, we are taking a more thoughtful approach to our near-term growth strategy to optimize profitability over the longer term. This includes a continued focus on supporting our core clients in the current environment while being more selective on new client relationships.

然而，正如傑瑞之前提到的，我們正在對我們的近期成長策略採取更加深思熟慮的方法，以優化長期獲利能力。這包括在當前環境下繼續專注於支援我們的核心客戶，同時對新客戶關係更有選擇性。

We are still seeing loan demand in the market that would support a higher growth rate today. But to do so, we would need to compromise on pricing and bring in more higher cost funding. Throw in where we are at in the credit cycle, it just doesn't make sense from a profitability standpoint.

我們仍然看到市場上的貸款需求將支持今天的更高成長率。但要做到這一點，我們需要在定價上做出妥協，並引入更多成本更高的資金。考慮到我們所處的信貸週期，從獲利能力的角度來看，這是沒有意義的。

Ultimately, this presents a good opportunity for us to continue building on our deposit momentum and improve our loan-to-deposit ratio in the near term. In fact, over the past two quarters, we have lowered our loan-to-deposit ratio from 108% to 101%. As this ratio improves, we will be better positioned to deploy capital into more robust loan growth when the environment is more favorable.

最終，這為我們提供了一個良好的機會，可以在短期內繼續增強存款動能並提高貸存比。事實上，在過去兩個季度，我們已將貸存比率從 108% 降低至 101%。隨著這一比率的提高，我們將能夠在環境更加有利時更好地將資本配置到更強勁的貸款成長中。

Turning to slide 10, you can see that while new loan originations and advances have declined year over year, they rebounded over 20% in the third quarter. Payoffs and paydowns have been on a similar trajectory with steady declines over the past year. But as we've mentioned, there was a notable increase in the third quarter as interest rates began to stabilize. We also continue to use loan participation as a tool to manage our loan growth, including the sale of $134 million year to date.

翻到投影片 10，您可以看到，雖然新貸款發放和預付款同比下降，但第三季反彈超過 20%。過去一年中，支付和支付一直處於類似的軌跡，穩定下降。但正如我們所提到的，隨著利率開始穩定，第三季出現了顯著成長。我們也繼續使用貸款參與作為管理貸款成長的工具，包括今年迄今銷售的 1.34 億美元。

On slide 11, you can see there was not a lot of movement in the various loan portfolios given relatively stable loan balances during the quarter. The movement we did see was primarily related to balances migrating from construction to multifamily as these projects completed their construction phase. Overall, we remain comfortable with the diversification we have across our loan portfolio.

在投影片 11 中，您可以看到，鑑於本季貸款餘額相對穩定，各種貸款組合沒有太大變動。我們確實看到的變化主要與隨著這些項目完成施工階段而從建築業遷移到多戶型住宅的餘額有關。總體而言，我們對貸款組合的多元化仍然感到滿意。

With that, I'll turn it over to Jeff.

有了這個，我會把它交給傑夫。

Thanks, Nick. Turning to slide 12, we continue to feel good about our asset quality, as non-performing assets remained at very low levels, making up just 0.02% of total assets at the end of September. Net charge-offs were just 1 basis point with cumulative net charge-offs of just $446,000 since 2019. And we again had virtually no loans 30 to 89 days past due. All of this is largely due to our measured risk selection, consistent underwriting standards, active credit oversight, and experienced lending and credit teams.

謝謝，尼克。轉向投影片 12，我們對資產品質持續感覺良好，不良資產仍保持在非常低的水平，截至 9 月底僅佔總資產的 0.02%。淨沖銷僅 1 個基點，自 2019 年以來累計淨沖銷僅為 446,000 美元。而且我們幾乎沒有逾期 30 至 89 天的貸款。這一切很大程度上歸功於我們謹慎的風險選擇、一致的核保標準、積極的信用監督以及經驗豐富的貸款和信貸團隊。

While we are still not seeing early signs of credit weakness, the higher for longer interest rate environment is putting pressure on businesses, which will likely result in credit normalization over time. We also remain well reserved at 1.36% of gross loans.

儘管我們仍未看到信貸疲軟的早期跡象，但長期較高的利率環境正在給企業帶來壓力，隨著時間的推移，這可能會導致信貸正常化。我們也保留了佔貸款總額 1.36% 的充足準備金。

We had no provision for credit losses during the quarter, given the stable loan balances, but we did have a negative $600,000 provision for unfunded commitments, which are primarily construction loans. As we continue to fund these commitments and with our limited loan growth outlook, we would expect to continue to see lower provisions in the near term, depending on the economic conditions and our overall credit quality.

鑑於貸款餘額穩定，本季我們沒有為信貸損失準備金，但我們確實為無資金承諾（主要是建築貸款）準備了 60 萬美元的負準備金。隨著我們繼續為這些承諾提供資金，並且貸款成長前景有限，我們預計短期內撥備金將繼續下降，具體取決於經濟狀況和我們的整體信貸品質。

On slide 13 you can see that our watch and substandard loans remained relatively stable during the quarter. Overall, we feel good about the risk profile of the portfolio and feel it is well positioned moving forward.

在投影片 13 中，您可以看到我們的觀察貸款和次級貸款在本季保持相對穩定。總體而言，我們對投資組合的風險狀況感覺良好，並認為其未來處於有利位置。

Turning to slide 14, we provide some more information on our CRE and office portfolios. The majority of our non-owner occupied CRE book is fixed rate which helps from a repricing risk standpoint. We continue to actively engage with our clients that have maturing loans or resetting rates over the next 12 months to identify possible cash flow strains and recommend solutions early in the process if necessary. We have completed this process for loans maturing or repricing in 2023 and are now focusing on our 2024 loans.

轉向幻燈片 14，我們提供了有關我們的商業房地產和辦公室投資組合的更多資訊。我們的大部分非業主佔用的商業房地產帳簿都是固定利率，從重新定價風險的角度來看，這有幫助。我們將繼續積極與未來 12 個月內貸款到期或重置利率的客戶合作，以確定可能的現金流壓力，並在必要時儘早提出解決方案。我們已經完成了 2023 年貸款到期或重新定價的流程，現在專注於 2024 年貸款。

As of quarter end, we had $195 million in non-owner occupied CRE office exposure, which is about 5% of total loans. This includes only four loans located in the central business districts totaling $35 million. We continue to monitor this portfolio closely, and we feel good about the outlook given the lower average loan amount, diversified client base, and primarily Midwestern suburban office exposure.

截至季末，我們擁有 1.95 億美元的非業主佔用 CRE 辦公室風險敞口，約佔貸款總額的 5%。這僅包括位於中央商務區的四筆貸款，總額達 3500 萬美元。我們將繼續密切關注這一投資組合，鑑於平均貸款金額較低、客戶群多元化以及主要是中西部郊區的辦公室業務，我們對前景感到樂觀。

Overall, we haven't noticed any material changes in these portfolios since the last quarter, and they continue to perform well. I'll now turn it back over to Joe.

總體而言，自上個季度以來我們沒有註意到這些投資組合有任何重大變化，並且它們繼續表現良好。我現在將把它轉回給喬。

Thanks, Jeff. Turning to slide 15, you could see that our liquidity profile has continued to improve throughout the year. At the end of the third quarter, we had $2.2 billion of on and off balance sheet liquidity, a robust 2.7 times the level of our uninsured deposits.

謝謝，傑夫。翻到投影片 15，您可以看到我們的流動性狀況全年持續改善。截至第三季末，我們的表內外流動性為 22 億美元，是未保險存款水準的 2.7 倍。

Slide 16 highlights our tangible book value growth and strong capital ratios. Tangible book value per share increased another 1.8% to $12.37 in the third quarter. We continue to demonstrate an ability to consistently grow tangible book value through various market ups and downs.

投影片 16 重點介紹了我們的有形帳面價值成長和強勁的資本比率。第三季每股有形帳面價值再成長 1.8% 至 12.37 美元。我們持續展現出在各種市場起伏中持續成長有形帳面價值的能力。

From a capital standpoint, we saw an increase in all of our capital ratios for the second consecutive quarter, including tangible common equity, which increased from 7.39% to 7.61%; and CET1, which increased to over 9%. We are focused on continuing to build these ratios over time, given our more moderated pace of loan growth and continued earnings retention.

從資本角度來看，我們所有的資本比率連續第二季有所上升，其中有形普通股資本比率從 7.39% 上升至 7.61%；和CET1，提高到9%以上。鑑於我們的貸款成長步伐更加溫和且持續保持獲利，我們的重點是隨著時間的推移繼續建立這些比率。

From a capital priority standpoint, organic growth remains our primary focus. Beyond that, we continue to review and monitor potential M&A opportunities. We also have a $25 million stock repurchase program that was approved by the Board in 2022, which we will continue to evaluate going forward.

從資本優先的角度來看，有機成長仍然是我們的首要關注。除此之外，我們繼續審查和監控潛在的併購機會。我們還有一項 2500 萬美元的股票回購計劃，該計劃於 2022 年獲得董事會批准，我們將繼續評估該計劃。

Turning to Slide 17, I'll summarize our thoughts on our near-term outlook. Coming into the year, we expected high single-digit loan growth in 2023. We are relatively in line running on a year-to-date annualized basis at around 6%. However, given the persistent high interest rate environment, we expect limited loan growth in the near-term as we focus on building our funding base to be able to deploy in a more favorable lending environment.

轉向投影片 17，我將總結我們對近期前景的想法。進入今年，我們預計 2023 年貸款將實現高個位數成長。從年初至今的年化成長率來看，我們的成長相對穩定，約為 6%。然而，鑑於持續的高利率環境，我們預計短期內貸款成長有限，因為我們專注於建立資金基礎，以便能夠在更有利的貸款環境中進行部署。

As Nick mentioned, we expect core deposit growth to continue to trending up over time. But I'll reiterate, it's not linear on a link quarter basis, given the nature of our deposit base. Our current loan-to-deposit ratio of 101% has declined back into our target range of 95% to 105%. As we moderate loan growth, we'd like to see that ratio continue to trend toward the bottom end of that range in the near term.

正如尼克所提到的，我們預期核心存款成長將隨著時間的推移繼續呈上升趨勢。但我要重申，考慮到我們存款基礎的性質，它在連結季度的基礎上並不是線性的。我們目前 101% 的貸存比率已回落至 95% 至 105% 的目標範圍。隨著我們放緩貸款成長，我們希望看到該比率在短期內繼續趨向該範圍的底部。

We would expect margin stabilization over the near term as the quarterly compression continues to slow. Obviously, there are still a lot of moving pieces, including ongoing funding pressures, but we are pleased with the progress and where we are from a margin standpoint.

隨著季度壓縮持續放緩，我們預計短期內利潤率會穩定。顯然，仍然有很多變化，包括持續的資金壓力，但我們對進展以及從利潤角度來看我們所處的位置感到滿意。

On the expense front, we expect to see ongoing non-interest expense growth, as we feel it is important to continue investing in the business and our people to support future growth opportunities. Expense growth has typically aligned with asset growth, but we would expect that to be the case for the full-year of 2023. We also expect lower levels of provision expense given the slower pace of loan growth, unfunded commitments continuing to fund, and a moderation in the volume of newly originated projects with unfunded commitments.

在費用方面，我們預計非利息費用將持續成長，因為我們認為繼續投資於業務和員工以支持未來的成長機會非常重要。費用增長通常與資產增長一致，但我們預計 2023 年全年都會出現這種情況。鑑於貸款增長速度放緩、無資金承諾繼續提供資金以及控制新發起的無資金承諾項目的數量。

I'll now turn it back over to Jerry.

我現在將其轉回給傑瑞。

Thanks, Joe. Finishing off on slide 18, despite the challenging macroeconomic environment, the strategic priorities we identified at the beginning of the year are still in place, and we have shared those with you today. We have made good progress on each of them.

謝謝，喬。投影片 18 結束時，儘管宏觀經濟環境充滿挑戰，但我們在年初確定的策略重點仍然存在，今天我們與大家分享了這些內容。我們在每一項上都取得了良好的進展。

I would also reiterate our continued ability to grow tangible book value. The current banking environment has presented several challenges, including meaningful margin compression and a slower pace of loan growth than we have been used to. But despite all of that, we have been able to continue compounding tangible book value. This remains a focus for us and a key way in which we drive shareholder value through economic cycles.

我還要重申我們持續增加有形帳面價值的能力。目前的銀行業環境提出了一些挑戰，包括利潤率大幅壓縮以及貸款成長速度比我們以往習慣的要慢。但儘管如此，我們仍然能夠繼續實現有形帳面價值的複合成長。這仍然是我們關注的焦點，也是我們在經濟週期中推動股東價值的關鍵方式。

With that, we will open this up for questions.

這樣，我們將開放這個問題。

We will now begin the question-and-answer session. (Operator Instructions) Jeff Rulis, D.A. Davidson.

我們現在開始問答環節。 （操作員說明）Jeff Rulis，D.A.戴維森。

Thanks. Good morning. Looking at the limited growth, I just want to kind of poke through that a little bit. You guys were pretty clear on it. Just want to gauge the level of participations if you have any visibility on pay downs or amortization schedule ahead to try to figure out where we are, how long we have maybe limited net growth, or where that turn may be if possible.

謝謝。早安.考慮到有限的成長，我只想稍微探討一下。你們已經說得很清楚了。只是想衡量參與水平，如果您對未來的付款或攤銷時間表有任何了解，以試圖弄清楚我們的處境，我們可能有限的淨增長多長時間，或者如果可能的話，轉向可能在哪裡。

Good morning, Jeff. This is Nick. A lot of the participation that we had funded through the quarter were related to prior originated loans that included construction transactions that had a participant on them. We have pulled back a bit on our selling a lot of participations on new transactions as an effort to continue to supplement the growth that we're looking for long-term.

早安，傑夫。這是尼克。我們在本季資助的許多參與都與先前發放的貸款有關，其中包括有參與者的建築交易。我們已經減少了對新交易的大量參與出售，以繼續補充我們尋求的長期成長。

So -- and we do feel good about the quarter, although we -- balances were down slightly. You know that actual advances and originations were up quarter over quarter. So it was a bit lumpy with some increased payoffs that some of which were delayed from second quarter and pushed into third quarter; and some of which were moved up from fourth and to third.

因此，儘管我們的餘額略有下降，但我們確實對本季感覺良好。您知道，實際預付款和初始金額逐季增加。因此，它有點不穩定，因為一些增加的回報，其中一些從第二季推遲到了第三季；其中一些從第四名上升到第三名。

So we were -- as we look out at our pipeline and payoffs, it looks to be a bit more like it had been earlier in the year. As we sort of project forward, it felt like it was just a bit exacerbated and lumpy there in Q3.

所以，當我們審視我們的管道和回報時，它看起來更像今年早些時候的情況。當我們向前推進時，感覺第三季的情況有點惡化和不穩定。

And Nick, I don't know if you could hazard a guess for '24 expectations on net growth. We'd be in the mid-to-high single digit or do you think we revert to historical Bridgewater over a couple quarters?

尼克，我不知道你是否可以大膽猜測一下 24 年淨成長預期。我們會處於中高個位數，還是您認為我們會在幾個季度內恢復到歷史悠久的橋水？

No, I think your first thought there is right. I think as we look farther out throughout 2024, that feels like that mid-single digits is where we're looking at it. I mean, like we've always mentioned though, our growth isn't always perfectly smooth and linear. It may be lumpy at times and, all likelihood, just given where we're at, it would likely be more heavily weighted towards the back half of the year, as we're thinking through it.

不，我認為你的第一個想法是對的。我認為，當我們展望 2024 年更遠的時期時，感覺我們正在關注的是中個位數。我的意思是，就像我們一直提到的那樣，我們的成長並不總是完全平穩和線性的。有時可能會很不穩定，而且很可能，考慮到我們所處的位置，在我們考慮的過程中，今年下半年的權重可能會更大。

Got it. Maybe switching gears, Joe, I appreciate the comments on that historical coupling of asset growth and expense growth. But assets were down in the quarter and expenses up 7% linked. That's a near-term job, but I'm trying to rationalize where expenses head in the next couple quarters relative to -- if loan growth is going to be pretty muted, just want to get a sense for -- and some of that expense base, you can't control with the FDIC side, but just near-term and then even a similar question is as, Nick, just expense growth in '24. Do you think we've revert back to historical pairing of asset growth and cost growth?

知道了。也許換個方式，喬，我很欣賞關於資產成長和費用成長的歷史耦合的評論。但本季資產有所下降，而費用卻增加了 7%。這是一項短期工作，但我正試圖合理化未來幾個季度的支出走向——如果貸款增長將相當緩慢，只是想了解一下——以及其中一些支出基礎上，你無法通過FDIC 方面進行控制，但只是近期，甚至類似的問題是，尼克，只是24 年的費用成長。您認為我們是否已經回到資產成長和成本成長的歷史配對狀態？

Yeah, I think you're thinking about it the right way, Jeff. I think we look at it more over the year and over the long haul. And as we've always said, that relationship has held up, whether it's on a growth rate basis or if you look at our non-interest expense to average assets, that ratio. If you take a step back and you look at it on the full year, that's relatively in line.

是的，我認為你的想法是正確的，傑夫。我認為我們會從這一年和長遠來看更多地關注它。正如我們一直所說，無論是在成長率的基礎上，還是在我們的非利息支出與平均資產的比例上，這種關係都一直存在。如果你退一步看一下全年情況，你會發現這是相對一致的。

So to Nick's point, mid-single digit loan growth next year, I'd also expect expenses to run in line with that. So I think it's hard -- from a quarter-over-quarter basis, we don't think about it that way. We just -- we think about it more over the long haul.

因此，就尼克的觀點而言，明年的貸款成長將達到中個位數，我也預期支出將與此一致。所以我認為這很難——從季度環比的角度來看，我們不會這樣考慮。我們只是——我們從長遠來看更多地考慮這個問題。

And as we guided last quarter, we expected a step up in the third quarter on a link quarter basis. But again, looking back on a year-to-date basis, it's only 6%. And if you think of asset growth over the last year, it's 10%. So that relationship remains intact.

正如我們上季度的指導那樣，我們預計第三季將在環比基礎上有所提升。但回顧今年迄今，這一比例僅 6%。如果你考慮去年的資產成長，那就是 10%。所以這種關係仍然完好無損。

And maybe a credit-related question just on -- so curious second guessing on multifamily loans of late just in the listening to some other calls. I -- at 37% of the portfolio, maybe just a question on kind of the long-term viability of that sector, which has been very -- historically, very clean. Just want to kind of kind of revisit from your end, how you feel about your comfort level with the multifamily segment in general.

也許還有一個與信貸相關的問題——最近在聽其他一些電話時，對多戶家庭貸款的好奇心再次猜測。我——佔投資組合的 37%，也許只是一個關於該行業長期生存能力的問題，該行業從歷史上看一直非常非常乾淨。只是想從您的角度重新審視一下您對多戶住宅市場整體舒適度的感受。

Well, great question. And like you said, there has been a lot of press out there on just the overall national multifamily market recently. We feel good about the portfolio. We feel good about the Twin Cities market. We've talked to you about this before, but the market in the Twin Cities has always been -- has never really been a bloom bust market and much more stable characteristics in terms of rent growth and with occupancy levels.

嗯，很好的問題。正如您所說，最近有很多關於全國多戶住宅市場的媒體報告。我們對這個投資組合感覺很好。我們對雙城市場感覺良好。我們之前曾與您討論過這一點，但雙城的市場一直以來都不是真正的繁榮蕭條市場，並且在租金增長和入住率方面具有更加穩定的特徵。

There was a recent report just nationally on multifamily that we're trying to cage overbuilt market by looking at the number of units under construction relative to the total inventory in the market. The Twin Cities came in at 5%, which was lower than the national average.

最近有一份關於全國多戶住宅的報告稱，我們正試圖透過查看在建單元數量相對於市場總庫存的數量來限製過度建設的市場。雙城的比例為 5%，低於全國平均。

So I think it tells you that there's just -- it's not being overbuilt. Also with some of the pressures on the single family market with the lack of inventory on the market and interest rate environment floating up, that bodes well for the multifamily market as well in terms of the need for housing.

所以我認為它告訴你，它並沒有過度建設。此外，由於市場庫存不足和利率環境浮動，單戶住宅市場面臨一些壓力，這對多戶住宅市場以及住房需求來說都是個好兆頭。

With that said, with our covenant testing and interest rates holding up, we have seen some compression in debt service coverage ratios of projects. We expect that will be somewhat short term. And then over the long-term, that will come back to a more normalized ratio.

話雖如此，隨著我們的契約測試和利率保持不變，我們看到專案的償債覆蓋率有所壓縮。我們預計這將是短期的。然後從長遠來看，這一比率將恢復到更正常化的水平。

And I guess the last thing I want to add is just that affordable housing units represent a significant portion of our market, and the Twin Cities, like everywhere, is lacking in affordable units. So I think that that is another just data point that reflects stabilization in the portfolio.

我想我想補充的最後一件事是，經濟適用房佔據了我們市場的很大一部分，而雙子城和其他地方一樣，缺乏經濟適用房。所以我認為這是另一個反映投資組合穩定的公正數據點。

And if I could, Jeff, just overall, outside of multifamily, just with that credit in general, your thoughts: watch list balances down a bit, substandard up a bit. Employed NPAs and net charge-offs continue to be pretty great. But overall, body language on credit.

如果可以的話，傑夫，總的來說，在多戶家庭之外，就一般而言，您的想法是：觀察名單平衡下降了一點，不合格的上升了一點。受僱不良資產和淨沖銷仍然相當大。但總的來說，肢體語言是有信用的。

No, just -- no, feel good. We're probably more dialed in to the portfolio between covenant testing, between looking at repricing of loans. So I think that that's probably the -- a lot of banks are looking at that the same way as one of the bigger risk factors out there.

不，只是——不，感覺很好。我們可能更關注契約測試和貸款重新定價之間的投資組合。所以我認為這可能是——許多銀行正在以同樣的方式看待這個問題，就像更大的風險因素之一一樣。

As I mentioned in the deck shows this, we have a lot of fixed rate product because of our commercial real estate focus. So that helps from a repricing standpoint. But we're just continuing to dive in wherever we can in order to try to identify potential risk factors that would impact the portfolio. But right now, we're not seeing too much.

正如我在簡報中提到的那樣，由於我們專注於商業房地產，因此我們有許多固定利率產品。因此，從重新定價的角度來看，這很有幫助。但我們只是繼續盡可能地深入研究，以嘗試找出可能影響投資組合的潛在風險因素。但現在，我們還沒有看到太多。

Great. I appreciate it. I'll step back.

偉大的。我很感激。我會退後一步。

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

我們的問答環節到此結束。我想將電話轉回給傑瑞·巴克（Jerry Baack），讓他發表結束語。

Thanks for joining the call today. We at BWB remain optimistic about the future, and we are seeing encouraging trends and continue to push our strong culture, our brand, our network, and events. We have some of the best clients, I think, in the nation and obviously, our employees, too. So thanks for your time today, and we'll talk to you next quarter. Bye.

感謝您今天加入通話。 BWB 對未來保持樂觀，我們看到了令人鼓舞的趨勢，並將繼續推動我們強大的文化、我們的品牌、我們的網絡和活動。我認為，我們擁有全國最好的客戶，當然還有我們的員工。感謝您今天抽出時間，我們將在下個季度與您交談。再見。

This concludes the presentation. Thank you for attending today's conference. You may now disconnect.

演示到此結束。感謝您參加今天的會議。您現在可以斷開連線。