Jeffrey D. Shellberg, Executive Vice President and Chief Credit Officer of Bridgewater Bancshares Inc (NASDAQ:BWB), has recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Shellberg sold 20,000 shares of common stock on October 29, 2024, at a weighted average price of $14.7533 per share. The sale, which was executed in multiple transactions at prices ranging from $14.70 to $14.90, amounted to a total of $295,066.
Following the transaction, Shellberg retains 152,000 shares held indirectly by trust, in addition to 360,125 shares held directly and 282,390 shares held indirectly by another trust. This transaction reflects Shellberg's ongoing management of his investment portfolio within the company.
In other recent news, Bridgewater Bancshares reported stable growth in its third-quarter earnings, with earnings of $0.27 per share. The bank highlighted a consistent net interest income growth and a stable net interest margin, along with a significant increase in core deposits. A noteworthy development is the upcoming acquisition of First Minnetonka City Bank, which is expected to enhance liquidity and reduce the bank's commercial real estate concentration.
Leadership changes were also announced, including the appointment of Nick Place as Chief Banking Officer and Lisa Salazar as Chief Operating Officer. Despite a decline in loan balances due to high loan payoffs, the bank foresees strong loan demand and a robust loan pipeline. The bank's fixed-rate loan portfolio is poised to benefit from future Federal Reserve rate cuts.
These recent developments indicate a focus on conservative credit practices and profitable growth. The bank anticipates modest margin expansion in the next quarter, influenced by the acquisition of First Minnetonka City Bank and improved net interest income. Bridgewater Bancshares remains optimistic about its growth strategy, with the acquisition set to close in the fourth quarter of 2024.
InvestingPro Insights
In light of Jeffrey D. Shellberg's recent stock sale, it's worth examining Bridgewater Bancshares Inc's (NASDAQ:BWB) current financial position and market performance. According to InvestingPro data, BWB has a market capitalization of $402.06 million and is trading at a price-to-earnings ratio of 13.7, suggesting a relatively modest valuation compared to some peers in the banking sector.
Despite Shellberg's sale, BWB has shown impressive stock performance, with a 52.44% price total return over the past year and a substantial 34.93% return in the last six months. This aligns with an InvestingPro Tip indicating a "high return over the last year." The stock's current price is also hovering near its 52-week high, at 93.17% of that peak.
However, investors should note that BWB's revenue growth has been negative, with a -10.26% decline in the last twelve months. This could be a factor in another InvestingPro Tip suggesting that "net income is expected to drop this year." Despite this, the company maintains a strong operating income margin of 44.37%, which may provide some cushion against revenue headwinds.
For those considering BWB as an investment, it's important to note that the company does not pay a dividend, as highlighted by another InvestingPro Tip. This suggests that BWB may be focusing on reinvesting profits for growth rather than distributing them to shareholders.
InvestingPro offers 7 additional tips for BWB, providing a more comprehensive analysis for investors looking to delve deeper into the company's prospects. These insights can be particularly valuable when assessing the context of insider transactions like Shellberg's recent sale.
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