Bridgewater Bancshares : First Quarter 2026 Investor Presentation

Published: 2026-05-04 08:31:14 ET BWB

Published on 05/04/2026 at 08:31 am EDT

BRI DGEWAT¥R

B›t1stcSHARES, INC.

The Finest Entrepreneurial Bank

Company Overview

Branch-Light Model in Attractive Twin Cities Market

Twin Cities

Name: Bridgewater Bancshares, Inc.

Headquarters: St. Louis Park, MN

Ticker: NASDAQ: BWB; BWBBP

Assets: $5.3 Billion

Loans: $4.4 Billion

Deposits: $4.3 Billion

Shareholders' Equity: $528.4 Million

Track Record of Profitability, Growth and Efficiency

Serving a Commercial-Focused Client Base

Business and Personal Banking

Loan Balances

Consumer,

<1% CRE,

32%

1-4 Family,

11%

$4.4B

C&I, 14%

Multifamily,

36%

Leases,

1% C&D,

Commercial Banking

Commercial & business lending

Business / treasury management

SBA lending

1-4 family rentals

Personal banking

CRE lending

Acquisition financing

Construction lending

Affordable housing financing

Long-term multifamily financing

Leases

Founded in 2005 by a group of banking industry veterans and local business leaders

Continuous profitability since the third month of operations

Proven ability to generate strong organic growth in the Twin Cities

Expertise in commercial real estate with a focus in multifamily and affordable housing lending

Highly efficient operations with a branch-light model

Organizational focus on risk management with a long track record of superb asset quality

Data as of March 31, 2026

Strategic Leadership Team (SLT) with Broad Skill Sets and Industry Experience

Jerry Baack

Chairman and Chief Executive Officer

Former regulator and responsible for all aspects of BWB formation

Lead founder of BWB in 2005

35+ years of banking experience

Laura Espeseth

Chief Administrative Officer

Oversees various aspects of finance, accounting, and facilities

Joined BWB in 2017

20+ years of banking and public accounting experience

Nick Place

Chief Banking Officer

Oversees all aspects of client growth and relationship management, including lending, treasury management and deposits

Joined BWB in 2007

20 years of banking experience

Joe Chybowski

President and Chief Financial Officer

Strategic insights across all aspects of the organization, including finance, capital and liquidity management

Joined BWB in 2013

15+ years of banking and capital markets experience

Katie Morrell

Chief Credit Officer

Oversees credit policies and practices and chairs the loan and credit risk management committees

Joined BWB in 2020

18+ years of financial services experience

Lisa Salazar

Chief Operating Officer

Oversees operations, technology and product initiatives to drive efficiencies and enhance the overall client experience

Joined BWB in 2018

30+ years of banking experience

Approximately 20% of BWB's common shares were owned by Board and SLT members as of March 31, 2026, demonstrating strong alignment with shareholders

Jessica Stejskal

Chief Experience Officer

Oversees marketing, community impact and project management

Joined BWB in 2014

14+ years of marketing experience

A Disciplined Strategy Built for Growth

A Top Workplace in Minnesota for 10+ years

Focus on professional development and employee retention

Entrepreneurial mindset built for speed and accountability, not bureaucracy

Accessible, hands-on leadership, actively involved in decisions and the business

Culture of transparency and ownership, enabling teams to act quickly and solve problems

Truly Unconventional Culture

Branch-light model with a commercial real estate focus

Efficient operating philosophy, including networking, banking tools and in-house expertise

Relatively low levels of expenses as a percent of total assets

Efficiency ratio consistently better than peer banks

Highly Efficient Business Model

252%

100%

BWB

Peer Bank Average2

Consistent Tangible Book Value1 Growth and Outperformance

Proactive Risk Management

Strong asset quality track record with consistently low levels of NCOs and NPAs

Conservative and decisive credit culture, including measured risk selection, consistent underwriting, active credit oversight and deep industry experience

Invest in scaling the risk management function to address emerging risks and support longer term growth outlook

Robust Balance Sheet Growth

Long track record of generating robust organic loan growth

Emphasis on CRE and multifamily lending

Increased focus on affordable housing with growth opportunities both in-market and nationally

M&A-related market disruption has created client and talent acquisition opportunities to support loan and deposit growth

Opportunistic acquirer following successful bank acquisition in 2024

4Q16

2Q17

4Q17

2Q18

4Q18

2Q19

4Q19

2Q20

4Q20

2Q21

4Q21

2Q22

4Q22

2Q23

4Q23

2Q24

4Q24

2Q25

4Q25

1Q26

Tangible Book Value Per Share1 growth resumed in 1Q25 following a bank acquisition in 4Q24

1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation 5

2 Includes publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion as of March 31, 2026 (Source: S&P Capital IQ)

Our Core Values

Culture as a Strategic Advantage

Intentional investment in the employee experience, supporting long-term engagement and retention

Employee Experience

Committed to investing in learning, development and career growth with an emphasis on developing talent from within

Professional Development

Disciplined operating rhythms and clear accountability, supporting execution and scalability

Clear Accountability

Competitive, equitable compensation and benefits designed to attract and retain high-performing teams

Compensation and Benefits

Employee-led committees supporting wellness, inclusion and professional development

Employee-Led Committees

32%

Team members

promoted into next-level and/or leadership roles in 2025

5-Time Winner

•

BEST

Business Bank

BEST

Small Business Bank

BEST

Commercial Mortgage Lender

•

BEST

Business Bank

BEST

Commercial Lender

•

An Award-Winning Client Experience

A Responsive Service Model

Our clients can expect…

Responsive support and simple solutions

A local bank of choice in a market where many local banks have been acquired by out-of-state buyers

Flexibility, market expertise and strong network connections

The "Proven Process" for Our Clients

A Commitment to Our Communities

2025

Community Impact Snapshot

Bridgewater is committed to investing in the communities we serve, through philanthropy, volunteering, and strategic partnerships, focused across our three Pillars of Community Impact:

Investing in People

Fueling Business

Building Places

Affordable housing and community development initiatives

Partnerships that strengthen neighborhoods and housing stability

Supporting entrepreneurs and small businesses that drive local economic vitality

Expanding access to capital, mentorship, and business networks, particularly for women-owned and diverse businesses

Workforce development, financial education, and community wellbeing

Programs that expand access to opportunity and long-term financial mobility

"Outstanding" CRA Rating

Minnesota Banker's Association -Community Champion Award

Partnered with the FHLB of Des Moines through the Member Impact Fund to help deliver over $800K in matching grants to 23 Minnesota nonprofits focused on affordable housing and community development

$401K

Total Donations

1,161

Volunteer Hours

BWB partnered with Project for Pride in Living to support affordable housing and community stability initiatives benefiting youth and families across the Twin Cities

BWB sponsored a Power of 100 Greater Stillwater event, supporting women leaders who are fueling local economic growth through collective philanthropy

As part of BWB's Take Your Child to Work Day, kids packed backpacks for resident children at People Serving People, allowing them to be prepared for the school year

Attractive and Growing Twin Cities Market

Strong Market Demographics

State with highest average credit score (742)2

Credit Worthy Population

Fortune 500 companies

per capita (17)1

Large Corporate Presence

2026 Median Household Income ($)6

$105,075

$81,775

#10

Top state for business4

Top State for Business

Best state for economic opportunity3

Economic Opportunity

Twin Cities Midwest Weighted Average

2026 - 2031 Proj. Population Growth (%)6

Top 20

Most populated MSA in the U.S.6

Populated MSA

Best rental market for recent college graduates5

State to Move to

2.28%

0.95%

Twin Cities Midwest Weighted Average

1 Source: Minnesota Department of Employment and Economic Development (ranking among 30 largest metro areas)

2 Source: Experian - Average FICO Score by State, 2025

3 Source: U.S. News & World Report, 2025

4 Source: CNBC, 2025

5 Source: Realtor.com, 2025 10

6 Source: S&P Capital IQ

Bank-of-Choice For Twin Cities Clients Looking to Bank Local

1Q262

$683.4

Second largest locally-led bank in the Twin Cities

$5.3

$1.5

$1.6

$2.3

$2.7

$2.9

$3.0

$3.7

Citizens North Park Deerwood Think

Alliance American State Bank Mutual Bank Bank Bank Bank

Tradition

Capital Bank

Sunrise

Banks

Merchants Minnwest

Bank

Frandsen

Bank & Trust

BWB

U.S.

Bank

0.05%

0.49%

0.04%

0.12%

0.11%

0.73%

0.33%

0.16%

0.33%

0.27%

1.84%

$384.2

Acquired Acquired

Acquired Acquired Acquired

$18.9

#14

$0.7

$1.2

$1.4

$1.5

$1.6

$2.9

BWB

Central

Bank

Anchor

Bank

Merchants Minnwest

Bank

Think Stearns

Mutual Bank Bank

Frandsen

Bank & Trust

Klein

Bank

Bremer

Bank

TCF

Bank

U.S.

Bank

0.27%

0.36%

Largest Minnesota-Based Banks by Total Assets1

Significant Twin Cities market disruption with several local banks being acquired by out-of-market buyers

BWB has the scale and agility to be the bank-of-choice for local clients looking for a local bank with local decision-making

BWB's YoY in-market deposit growth has exceeded Twin Cities MSA growth for

41.21%

13 consecutive years3

0.59%

0.11%

0.07%

0.08%

0.01%

0.09%

0.57%

1.14%

2.51%

26.76%

2014

1 Source: FDIC and S&P Capital IQ; includes banks with deposits in the Minneapolis-St. Paul MSA (data as of June 30 of each year)

2 Total assets as of March 31, 2026; excludes Ameriprise Financial 11

3 Source: FDIC and S&P Capital IQ

History of Robust Organic Asset Growth

$5,335

$5,066

$4,612

$4,346

$3,478

$2,927

$2,269

$1,974

$1,617

$1,260

$929

$4,821

$245

$76

$1,184

$5,407

Ongoing evaluation of potential M&A opportunities to complement organic growth strategy

Completed the acquisition of First Minnetonka City Bank in December 2024

Emphasis on commercial real estate and multifamily lending with an increased focus on affordable housing

Proven ability to consistently generate robust organic asset growth

primarily in the Twin Cities market

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1Q26

Dollars in millions

Return to Normalized Levels of Loan Growth

Long track record of strong loan growth

After moderating through much of 2024 due to the higher interest rate environment, organic loan growth returned in 2025

$4,310 $4,368

$3,569

$3,724

$3,869

2022 2023 2024 2025 1Q26

$4,215 $4,310 $4,368

$4,020

$4,146

1Q25 2Q25 3Q25 4Q25 1Q26

Strong brand presence and relationships in the market allow us to get in front of high-quality clients and deals

Operating in a competitive "sweet spot" in the Twin Cities - financing larger deals than community banks, but under the radar of the larger banks

Opportunities to build new client and banker relationships due to recent M&A-related market disruption in the Twin Cities

Expansion of talented lending and treasury management teams

Recent growth in affordable housing with balances up 19% year-over-year

Dollars in millions

1 Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000

1Q26 loan balances increased 5.5% annualized

Near-term loan growth dependent on a variety of factors, including:

Market and economic conditions - economic uncertainty including the interest rate environment

Loan demand - M&A disruption and strong pipelines to support near-term growth, but economic uncertainty and increased competition could impact demand going forward

Loan payoffs and paydowns - pace of loan payoffs will continue to impact loan growth

Core deposit1 growth - pace of core deposit growth will be a governor on loan growth as we look to remain within our target loan-to-deposit ratio range

Strong Diversification Within Key Portfolios

Size

YoY Growth

Competitors

Go-to-Market Strategy

Property

Type

Multifamily 30%

CRE Other

14%

Land

37%

Residential

19%

55%

Local and regional banks

Efficient underwriting process and deep knowledge in construction loan management

Renewed balance sheet growth following increased commitments since late 2024

$0.8M 54% 0.00%

Avg. Loan Weighted 5-Year Size Avg. LTV NCOs

6% of

portfolio

$260M

Construction & Development

Office

Retail 20%

18%

Industrial

28%

Property Type

Mini

Storage Facility 10%

Senior Housing 8%

Other

12%

Medical

Office 4%

12%

Local banks and life insurance companies

Knowledgeable lenders with efficient closing processes and ample capacity

Continued appetite given expertise and market opportunities

$2.0M 56% 99%

Avg. Loan Weighted Loans with Size Avg. LTV Pass Rating

27% of

portfolio

$1,185M

CRE Nonowner Occupied

Class A

Affordable 24%

Housing 1

31%

Property

Type Class B 11%

Class C 34%

68% 99%

Weighted Loans with Avg. LTV Pass Rating

$3.0M

Avg. Loan Size

Agency lenders, local banks and credit unions

Bank of choice in the Twin Cities market due to proven expertise and differentiated service model

Continued appetite given expertise and market opportunities

36% of

portfolio

$1,590M

Multifamily

Constr.

RE, Rental

and Leasing 53%

Manufact.

12%

Industry

Prof.

Services 6%

Accom. & Food

Service 1%

Other

Trade 13%

Finance & Ins. 6%

0.07% 99%

5-Year Loans with

NCOs Pass Rating

$438K

Avg. Loan Size

Increased focus on expanding C&I

through targeted verticals

12%

Local and regional banks

Responsive support, simple solutions and the local touch entrepreneurs are looking for

14% of

portfolio

$593M

C&I

Portfolio Diversification

Key Stats

Growth Outlook

1 Includes formally subsidized properties (25%) and market rate properties with affordable set-asides (6%) 14

Data as of March 31, 2026

Well-Diversified Loan Portfolio with Multifamily and CRE Expertise

1Q26

2015

Evolution of Loan Mix by Type

Consumer & Other

<1%

Leases 1%

Consumer & Other

CRE Concentrations (ex. Multifamily) Have Trended Lower

<1%

CRE OO 6%

1-4 Family

18%

$0.8B

CRE NOO 27%

CRE OO 4%

C&I 14%

1-4 Family

11%

$4.4B

CRE NOO 27%

534%

C&I 13%

C&D 15%

Multifamily 21%

C&D 6%

Multifamily 36%

517%

497%

503%

515%

480%

483%

482%

456%

462%

473%

461%

180%

164% 185%

204%

177%

190%

219%

257%

250%

249%

241%

354%

333%

318%

304% 313%

266% 264% 258%

232%

213%

224% 220%

Intentional mix shift toward Multifamily has aligned with the build-out of talent and expertise in the segment

and continued strong performance

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1Q26

1 Includes nonowner-occupied CRE, construction and land development, and 1-4 family construction

CRE Concentration Driven by a Proven, Lower Risk Multifamily Portfolio

Multifamily Lending Approach

Low Historical Losses vs. Other Asset Classes

461%

of Bank RBC

241%

of Bank RBC

220%

of Bank RBC

1Q26

Multifamily

CRE (ex. Multifamily) 3

Multifamily Makes Up Over Half of CRE Concentration

Bank of choice in the Twin Cities with expertise and differentiated service model

Greater tenant diversification compared to other asset classes

Positive market trends with reduced vacancy rates, strong absorption, and slower construction = favorable outlook for occupancy and rent growth

Market catalysts include relative affordability, steady population

1.40%

1.20%

1.00%

0.80%

0.60%

0.40%

0.20%

0.00%

Average Historical Net Charge-Off Rates

(all FDIC-insured banks)2

growth, low unemployment, strong wages, and shortage of single-family housing

(0.20)%

CRE 1-4

Multifamily

Family

C&I C&D Consumer

(ex. cards & auto)

Total

Loans

Affordable

Housing

Class A

24%

31%

Product

Type Class B 11%

Class C 34%

Increased Focus on Affordable Housing

Well-Diversified by Size

5-19

Units

100+ 9%

Units 20-49

35% Units

Size 25%

50-99

Units 31%

Properties Primarily Located In-Market

Location

Minnesota

84%

National 16%

Multifamily Portfolio Characteristics Drive Track Record of Strong Asset Quality

Portfolio Balance

Affordable Housing Mix1

WA LTV

Avg. Loan Size

$1.6B 31%

68%

Avg. Debt/Unit

$3.0M

$85K

NCOs (since 2005)

$62K

1 Includes formally subsidized properties (25%) and market rate properties with affordable set-asides (6%)

2 FDIC (data through 4Q25) 16

3 Includes nonowner-occupied CRE, construction and land development, and 1-4 family construction

Unique Expertise in Affordable Housing

Expertise in the High-Quality Affordable Housing Space

Anatomy of an Affordable Housing Transaction

Permanent financing

Final equity contributions

Stabilization and lease-up

Permanent Stage

Construction financing

Equity investor contributions

Monthly draws

Construction Stage

Land acquisition (takedown)

Predevelopment financing

Entitlements and approvals

Predevelopment Stage

Leveraging affordable housing expertise to support communities and clients in the Twin Cities and across the country

High barrier to entry due to complex nature of the transactions

Active in the affordable housing space since 2008

Risk mitigants include working with experienced developers of scale across the country and the ongoing demand for affordable housing nationwide

BWB has the ability to provide financing through one or more of the following parts of the transaction:

Construction Loan

Permanent Loan

Equity Bridge Loan

Letter of Credit

Land Acquisition Financing

Corporate Line of Credit

66% of the portfolio located in MN, 34% located out-of-state

Sample Affordable Housing Transaction

Sources of Funds ($000s)

Budget

Pre-

development

Construction

Conversion

Permanent

1st Mortgage Construction

to Permanent Loan

$ 20,000

$ -

$1 20,000

$ -

$2 20,000

LIHTC Equity

30,000

12,000

18,000

30,000

Equity Bridge Loan

15,000

3 15,000

(15,000)

Land Loan

2,000

5 2,000

Corporate Line of Credit

Advance

250

6 250

Borrower Equity

500

Letter of Credit (not drawn)

4 200

Total Source of Funds

$ 67,950

$ 2,750

$ 47,000

$ 3,000

$ 50,000

Strong source of core deposit growth

Portfolio Growth

Portfolio Mix

$597 $581 $611

$652

$708

Non-RE

(equity bridge, TIF, etc.) 23%

Land 2%

Construction 6%

$708M

1Q25 2Q25 3Q25 4Q25 1Q26

Dollars in millions

Data as of March 31, 2026

Multifamily 69%

Continued Core Deposit Momentum

Long track record of strong deposit growth…

…with recent core deposit momentum

$3,710

$3,417

20%

23%

28%

31%

30%

25%

21%

13%

19%

21%

26%

20%

21%

19%

$3,351

$3,377

$3,279

$3,170

$3,186

$4,320

$4,306

19%

20%

32%

35%

$4,087

2022 2023 2024 2025 1Q26

1Q25 2Q25 3Q25 4Q25 1Q26

Strong and growing brand taking market share in the Twin Cities

New client and banker acquisition opportunities due to M&A disruption, including ONB/Bremer merger

Niche deposit verticals including property management companies, title companies and affordable housing

Supplemented core deposits with wholesale funding to support future loan growth and manage interest rate risk

1Q26 deposits declined $15M, or 1.4% annualized (up 3.4% YoY)

1Q26 core deposit1 growth of $26M, or 3.2% annualized (up 6.5% YoY)

Core deposit growth continued while brokered deposit and CD balances declined on combined basis YoY

Deposit balances tend to be seasonally lower early in the year

Loan-to-deposit ratio of 101.5%, within the 95% to 105% target range

1 Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000 Dollars in millions

Enhancing Balance Sheet Efficiency

1Q26 Actions to Improve Forward Profitability While Generating a Gain on Sales of Securities

Sale of Treasuries

Rationale

Opportunistically capitalize on interest rate volatility to enhance balance sheet efficiency and drive current and future earnings

Support future NIM expansion by repricing assets higher and repricing funding lower

Sell securities at a gain and redeploy capital into higher-yielding loans going forward

Reduce higher cost borrowings used to fund securities

Bolster capital levels

Prepayment of FHLB Advances

Sale of Municipal Bonds

Sold $146.5M of treasuries and unwound related derivatives

Resulted in a net pre-tax gain of $1.2M

Weighted average yield of 4.24%

Prepaid $97.5M of FHLB advances

Prepayment fee of $982K impacted noninterest expense in 1Q26

Weighted average rate of 4.08%

Sold $62.0M of municipal bonds and unwound the related swaps

Resulted in a net pre-tax gain of $6.1M

Weighted average tax-equivalent yield of 5.18%

Sold $208.5M of securities

Pre-tax gain on sales of securities of $7.3M

Prepaid $97.5M of FHLB advances

FHLB prepayment expense of $982K

Net Impact

A Spread-Based Revenue Model

Revenue Growth Continues

Spread Based Revenue Model…With Increased Fee Income Mix

$26,181 $26,759 $27,121

$1,550 $1,763 $1,522

$29,500

$32,287

$36,079 $36,152

$38,835

$36,647

$35,687

$34,091

$32,452

$30,208

$26,967

$24,631

$24,996

$25,599

$2,533

$2,079

$2,061

$3,627

$3,148

$9,564

$46,211

Strong track record of revenue growth driven by steady net interest income growth

Spread-based revenue model with net interest income making up 92% of total revenue in 2025

Recent increase in noninterest income driven by:

Swap fees ($1.9M over the past five quarters)

Investment advisory fees ($1.2M since FMCB acquisition in 4Q24)

1Q26 noninterest income included one non-core item:

Sold $208.5M of securities for a gain of $7.3M

1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26

Dollars in thousands

Disclaimer

Bridgewater Bancshares Inc. published this content on May 04, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 04, 2026 at 12:30 UTC.