ST. LOUIS PARK, Minn. - Bridgewater Bancshares, Inc. (NASDAQ:BWB), the holding company for Bridgewater Bank, has received all necessary regulatory approvals to proceed with its acquisition of First Minnetonka City Bank, as announced today. The approvals, including those from the Federal Deposit Insurance Corporation and the Minnesota Department of Commerce, pave the way for the merger expected to close in the fourth quarter of 2024, pending customary closing conditions.
Bridgewater Bancshares, a financial holding company based in St. Louis Park, Minnesota, operates Bridgewater Bank, a full-service bank catering to commercial real estate investors, entrepreneurs, and business clients. As of June 30, 2024, Bridgewater reported assets totaling $4.7 billion and operates seven branches in the State of Minnesota.
First Minnetonka City Bank, a locally owned financial institution since 1964, is headquartered in Minnetonka, Minnesota. It offers a range of financial services through its two full-service branches and had $242 million in assets as of June 30, 2024.
The acquisition is part of Bridgewater's strategic expansion and is expected to integrate First Minnetonka City Bank's operations into Bridgewater Bank's network. The merger aims to enhance the combined entity's capacity to serve their respective customer bases and contribute to overall growth.
The press release also contains forward-looking statements regarding the anticipated benefits and timing of the merger. However, these statements are based on current beliefs and expectations and are subject to various risks, uncertainties, and changes in circumstances, many of which are beyond the control of Bridgewater Bancshares.
The completion of the merger is subject to the satisfaction of the conditions outlined in the merger agreement. The proposed merger's success will also depend on the integration of operations and retention of key employees, among other factors.
This news is based on a press release statement from Bridgewater Bancshares, Inc., and no further details have been independently verified. The information provided should be considered in the context of the risks and uncertainties outlined in the forward-looking statements section of the press release.
In other recent news, Bridgewater Bancshares has reported a resurgence in revenue growth and stabilized net interest margin in its 2024 second-quarter financial results. Despite subdued loan and deposit growth, the company highlighted its 30th consecutive quarter of tangible book value per share growth. In a strategic move, Bridgewater Bancshares has also extended its credit line with ServisFirst Bank, securing financial flexibility until 2026. The variable interest rate for this credit line, which allows borrowing up to $40 million, has been increased from 3.85% to 4.50%.
The Minnesota-based bank has also announced the acquisition of First Minnetonka City Bank, a development expected to result in a 15% earnings per share accretion by 2025 according to Piper Sandler. The firm, maintaining an Overweight rating on Bridgewater Bancshares, suggests this acquisition will enhance the bank's presence in the Minneapolis market and provide significant liquidity options.
In addition to these financial developments, Bridgewater Bancshares has been recognized as a top workplace for the fifth consecutive year. The company has launched a new CRM platform, is developing a new online banking solution, and has made key hires in the treasury and banking areas, demonstrating its commitment to optimizing the balance sheet for longer-term growth.
InvestingPro Insights
As Bridgewater Bancshares (NASDAQ:BWB) moves forward with its acquisition of First Minnetonka City Bank, investors may find additional context from recent financial metrics and expert insights valuable.
According to InvestingPro data, Bridgewater Bancshares has a market capitalization of $411.89 million, reflecting its current position in the banking sector. The company's P/E ratio stands at 13.64, suggesting a relatively modest valuation compared to some peers in the industry.
One InvestingPro Tip highlights that Bridgewater has seen a "high return over the last year," which is corroborated by the impressive 63.52% price total return over the past year. This strong performance may have provided the company with momentum to pursue strategic acquisitions like the one with First Minnetonka City Bank.
Another relevant InvestingPro Tip indicates that analysts predict the company will be profitable this year. This projection of continued profitability could be seen as a positive factor supporting Bridgewater's expansion strategy through the announced merger.
It's worth noting that InvestingPro offers 7 additional tips for Bridgewater Bancshares, providing investors with a more comprehensive analysis of the company's financial health and market position. These insights could be particularly useful for those looking to understand the potential impacts of the upcoming merger on Bridgewater's financial outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.