BWBBP - Bridgewater Bancshares: 8% Yielding Preferred Share Good For Income Investors
2024-02-25 09:00:00 ET
Summary
- Bridgewater Bancshares has faced challenges due to higher interest rates, resulting in a squeeze in net interest spreads and margins.
- Despite a drop in net interest margin, the bank's net interest income remains above pre-pandemic levels and is stabilizing.
- The bank's exposure to nonowner commercial real estate loans is a concern, but the risk is mitigated by low loan-to-value ratios and a small percentage of loans on a watchlist or substandard.
Bridgewater Bancshares ( BWB ) is a Minnesota based regional bank with a major presence in the Twin Cities. The company has not been immune to the struggles of the sector as regional banks fight to keep deposits and manage risks to profitability during an interest rate cycle that continues to remain higher for longer. Back in September, I profiled Bridgewater’s preferred shares ( BWBBP ) as a good income investment. Despite their price rally, the preferred shares remain a good income candidate with an 8% dividend yield following the bank’s latest earnings report. In this article, I'll describe the biggest problems facing Bridgewater Bancshares and why I'm still bullish on the bank's preferred shares....
Bridgewater Bancshares: 8% Yielding Preferred Share Good For Income Investors