Bridgewater Bancshares, Inc. Announces First Quarter 2026 Financial Results

Published: 2026-04-21 16:16:04 ET BWB

First Quarter 2026 Highlights Net income of $17.4 million, or $0.58 per diluted common share; adjusted net income of $12.6 million, or $0.41 per diluted common share.(1) Net interest income increased $960,000, or 10.9% annualized, from the fourth quarter of 2025. Net interest margin (on a fully tax-equivalent basis) of 2.99%, an increase of 24 basis points from the fourth quarter of 2025. Cost of total deposits of 2.79% for the first quarter of 2026, a decrease of 18 basis points from the fourth quarter of 2025. Enhanced balance sheet efficiency to improve forward profitability through the sale of $208.5 million of securities, for a pre-tax gain of $7.3 million, and prepayment of $97.5 million of FHLB advances, including a $982,000 prepayment fee. Gross loans increased by $58.5 million, or 5.5% annualized, from the fourth quarter of 2025. Total deposits decreased by $14.9 million, or 1.4% annualized, from the fourth quarter of 2025; core deposits(2) increased by $26.2 million, or 3.2% annualized, from the fourth quarter of 2025. Efficiency ratio(1) of 56.3%, up from 51.6% for the fourth quarter of 2025; adjusted efficiency ratio(1) of 53.8%, up from 50.7% for the fourth quarter of 2025. Annualized net loan charge-offs as a percentage of average loans of 0.05%, compared to 0.11% for the fourth quarter of 2025. Nonperforming assets to total assets of 0.22% at March 31, 2026, down from 0.41% at December 31, 2025. Tangible book value per share(1) of $15.93 at March 31, 2026, an increase of 9.9% annualized, from the fourth quarter of 2025. Common Equity Tier 1 Risk-Based Capital Ratio of 9.53%, up from 9.17% at December 31, 2025. Launched an at-the-market (“ATM”) offering for the sale from time-to-time of up to $50 million of common stock.

Published on 04/21/2026 at 04:16 pm EDT

Bridgewater Bancshares, Inc. (Nasdaq: BWB) (“the Company”), the parent company of Bridgewater Bank (“the Bank”), today announced net income of $17.4 million for the first quarter of 2026, compared to $13.3 million for the fourth quarter of 2025, and $9.6 million for the first quarter of 2025. Earnings per diluted common share were $0.58 for the first quarter of 2026, compared to $0.43 for the fourth quarter of 2025, and $0.31 for the first quarter of 2025. Adjusted diluted earnings per share, a non-GAAP financial measure, were $0.41 for the first quarter of 2026, compared to $0.44 for the fourth quarter of 2025, and $0.32 for the first quarter of 2025.

“Bridgewater’s first quarter of 2026 was highlighted by significant net interest margin expansion, continued loan and core deposit growth, and strong asset quality,” said Chairman and Chief Executive Officer, Jerry Baack. “We took opportunistic actions during the quarter to enhance our balance sheet efficiency, uniquely resulting in a substantial gain on the sale of securities during the quarter while also positioning us for improved forward profitability. As a result of the strong start to 2026, we were able to build our capital position and continue generating consistent tangible book value per share growth.

“Our teams continue to work hard to build, strengthen, and service relationships with clients, which has been instrumental in our ongoing success in gaining market share. These dedicated efforts continue to support our growth initiatives and drive meaningful value for our clients and shareholders alike.”

__________________________________

Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.

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

Key Financial Measures

As of and for the Three Months Ended

March 31,

December 31,

March 31,

2026

2025

Per Common Share Data

Basic Earnings Per Share

0.59

0.45

0.31

Diluted Earnings Per Share

0.58

0.43

0.31

Adjusted Diluted Earnings Per Share (1)

0.41

0.44

0.32

Book Value Per Share

16.60

16.23

14.60

Tangible Book Value Per Share (1)

15.93

15.55

13.89

Financial Ratios

Return on Average Assets (2)

1.35

0.97

0.77

Pre-Provision Net Revenue Return on Average Assets (1)(2)

1.30

1.35

1.13

Return on Average Shareholders' Equity (2)

13.45

10.38

8.39

Return on Average Tangible Common Equity (1)(2)

15.13

11.53

9.22

Net Interest Margin (3)

2.99

2.75

2.51

Core Net Interest Margin (1)(3)

2.86

2.62

2.37

Cost of Total Deposits

2.79

2.97

3.18

Cost of Funds

2.90

3.07

3.17

Efficiency Ratio (1)

56.3

51.6

55.5

Noninterest Expense to Average Assets (2)

1.71

1.48

1.45

Tangible Common Equity to Tangible Assets (1)

8.34

8.01

7.48

Common Equity Tier 1 Risk-based Capital Ratio (Consolidated) (4)

9.53

9.17

9.03

Adjusted Financial Ratios (1)

Adjusted Return on Average Assets (2)

0.98

0.99

0.80

Adjusted Pre-Provision Net Revenue Return on Average Assets (2)

1.37

1.38

1.18

Adjusted Return on Average Shareholders' Equity (2)

9.76

10.54

8.77

Adjusted Return on Average Tangible Common Equity (2)

10.72

11.72

9.68

Adjusted Efficiency Ratio

53.8

50.7

53.7

Adjusted Noninterest Expense to Average Assets (2)

1.64

1.45

1.41

Balance Sheet and Asset Quality (dollars in thousands)

Total Assets

5,335,396

5,407,002

5,136,808

Total Loans, Gross

4,368,042

4,309,517

4,020,076

Deposits

4,305,511

4,320,369

4,162,457

Loan to Deposit Ratio

101.5

99.7

96.6

Net Loan Charge-Offs to Average Loans (2)

0.05

0.11

0.00

Nonperforming Assets to Total Assets (5)

0.22

0.41

0.20

Allowance for Credit Losses to Total Loans

1.31

1.34

__________________________________

Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.

Annualized.

Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of 21%.

Preliminary data. Current period subject to change prior to filings with applicable regulatory agencies.

Nonperforming assets are defined as nonaccrual loans plus 90 days past due and still accruing plus foreclosed assets.

Income Statement

Net Interest Margin and Net Interest Income

Net interest margin (on a fully tax-equivalent basis), a non-GAAP financial measure, for the first quarter of 2026 was 2.99%, a 24 basis point increase from 2.75% in the fourth quarter of 2025, and a 48 basis point increase from 2.51% in the first quarter of 2025. Core net interest margin (on a fully tax-equivalent basis), a non-GAAP financial measure, which excludes the impact of loan fees and purchase accounting accretion attributable to the acquisition of First Minnetonka City Bank (“FMCB”), was 2.86% for the first quarter of 2026, a 24 basis point increase from 2.62% in the fourth quarter of 2025, and a 49 basis point increase from 2.37% in the first quarter of 2025.

Net interest income was $36.6 million for the first quarter of 2026, an increase of $960,000 from $35.7 million in the fourth quarter of 2025, and an increase of $6.4 million from $30.2 million in the first quarter of 2025.

Interest income was $70.0 million for the first quarter of 2026, a decrease of $3.3 million from $73.3 million in the fourth quarter of 2025, and an increase of $4.3 million from $65.7 million in the first quarter of 2025.

A summary of interest and fees recognized on loans for the periods indicated is as follows:

Three Months Ended

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

Interest

5.66

5.63

5.66

5.59

5.50

Fees

0.12

0.10

0.09

0.11

0.07

Accretion

0.03

0.05

0.04

Yield on Loans

5.81

5.78

5.79

5.74

5.61

Interest expense was $33.3 million for the first quarter of 2026, a decrease of $4.3 million from $37.6 million in the fourth quarter of 2025, and a decrease of $2.2 million from $35.5 million in the first quarter of 2025.

Interest expense on deposits was $28.8 million for the first quarter of 2026, a decrease of $3.4 million from $32.2 million in the fourth quarter of 2025, and a decrease of $3.3 million from $32.1 million in the first quarter of 2025.

Provision for Credit Losses

The provision for credit losses on loans and leases was $1.4 million for the first quarter of 2026, compared to $1.3 million for the fourth quarter of 2025 and $1.5 million for the first quarter of 2025.

The provision for credit losses for off-balance sheet credit exposures was a negative provision of $150,000 for the first quarter of 2026, compared to a provision of $200,000 for the fourth quarter of 2025 and a provision of $-0- for the first quarter of 2025.

Noninterest Income

Noninterest income was $9.6 million for the first quarter of 2026, an increase of $6.4 million from $3.1 million for the fourth quarter of 2025, and an increase of $7.5 million from $2.1 million for the first quarter of 2025.

Noninterest Expense

Noninterest expense was $22.2 million for the first quarter of 2026, an increase of $1.9 million from $20.2 million for the fourth quarter of 2025, and an increase of $4.0 million from $18.1 million for the first quarter of 2025.

Income Taxes

The effective combined federal and state income tax rate was 23.8% for the first quarter of 2026, compared to 22.2% for the fourth quarter of 2025, and 23.9% for the first quarter of 2025.

Balance Sheet

Loans

(dollars in thousands)

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

Commercial

593,406

547,245

533,476

549,259

528,801

Leases

41,791

43,407

43,186

44,817

43,958

Construction and Land Development

209,421

216,163

159,991

136,438

128,073

1-4 Family Construction

50,629

45,152

41,739

39,095

39,438

Real Estate Mortgage:

1-4 Family Mortgage

488,029

496,142

487,297

474,269

479,461

Multifamily

1,590,091

1,587,338

1,578,223

1,555,731

1,534,747

CRE Owner Occupied

188,588

189,754

192,966

192,837

196,080

CRE Nonowner Occupied

1,185,371

1,165,104

1,158,622

1,137,007

1,055,157

Total Real Estate Mortgage Loans

3,452,079

3,438,338

3,417,108

3,359,844

3,265,445

Consumer and Other

20,716

19,212

19,054

16,346

14,361

Total Loans, Gross

4,368,042

4,309,517

4,214,554

4,145,799

4,020,076

Allowance for Credit Losses on Loans

(57,277

)

(56,443

)

(56,390

)

(55,765

)

(53,766

)

Net Deferred Loan Fees

(8,633

)

(8,966

)

(8,282

)

(7,629

)

(7,218

)

Total Loans, Net

4,302,132

4,244,108

4,149,882

4,082,405

3,959,092

Total gross loans at March 31, 2026 were $4.37 billion, an increase of $58.5 million, or 5.5% annualized, compared to total gross loans of $4.31 billion at December 31, 2025, and an increase of $348.0 million, or 8.7%, compared to total gross loans of $4.02 billion at March 31, 2025.

Deposits

(dollars in thousands)

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

Noninterest Bearing Transaction Deposits

828,845

923,070

822,632

787,868

791,528

Interest Bearing Transaction Deposits

899,911

893,740

860,774

791,748

840,378

Savings and Money Market Deposits

1,497,517

1,380,922

1,428,726

1,441,694

1,372,191

Time Deposits

232,959

312,154

346,214

344,882

326,821

Brokered Deposits

846,279

810,483

834,418

870,550

831,539

Total Deposits

4,305,511

4,320,369

4,292,764

4,236,742

4,162,457

Total deposits at March 31, 2026 were $4.31 billion, a decrease of $14.9 million, or 1.4% annualized, compared to total deposits of $4.32 billion at December 31, 2025, and an increase of $143.1 million, or 3.4%, compared to total deposits of $4.16 billion at March 31, 2025.

Asset Quality

Overall asset quality remained strong due to the Company’s measured risk selection, consistent underwriting standards, active credit oversight, and experienced lending and credit teams.

Capital

Total shareholders’ equity at March 31, 2026 was $528.4 million, an increase of $11.3 million, or 8.9% annualized, compared to $517.1 million at December 31, 2025, and an increase of $59.4 million, or 12.7%, over $469.0 million at March 31, 2025.

Tangible book value per share, a non-GAAP financial measure, was $15.93 as of March 31, 2026, an increase of 9.9% annualized from $15.55 as of December 31, 2025, and an increase of 14.7% from $13.89 as of March 31, 2025.

The Company did not repurchase any shares of its common stock during the first quarter of 2026.

The Company launched an ATM offering during the first quarter of 2026 for the sale from time-to-time of up to $50 million of company stock.

Today, the Company also announced that its Board of Directors has declared a quarterly cash dividend on its 5.875% Non-Cumulative Perpetual Preferred Stock, Series A (“Series A Preferred Stock”). The quarterly cash dividend of $36.72 per share, equivalent to $0.3672 per depositary share, each representing a 1/100th interest in a share of the Series A Preferred Stock (Nasdaq: BWBBP), is payable on June 1, 2026 to shareholders of record of the Series A Preferred Stock at the close of business on May 15, 2026.

Conference Call and Webcast

The Company will host a conference call to discuss its first quarter 2026 financial results on Wednesday, April 22, 2026 at 8:00 a.m. Central Time. The conference call can be accessed by dialing 844-481-2913 and requesting to join the Bridgewater Bancshares earnings call. To listen to a replay of the conference call via phone, please dial 855-669-9658 and enter access code 2037632. The replay will be available through April 29, 2026. The conference call will also be available via a live webcast on the Investor Relations section of the Company’s website, investors.bridgewaterbankmn.com, and archived for replay.

About the Company

Bridgewater Bancshares, Inc. (Nasdaq: BWB) is a St. Louis Park, Minnesota-based financial holding company founded in 2005. Its banking subsidiary, Bridgewater Bank, is a premier, full-service bank dedicated to providing responsive support and simple solutions to businesses, entrepreneurs, and successful individuals across the Twin Cities. Bridgewater offers a comprehensive suite of products and services spanning deposits, lending, and treasury management solutions. Bridgewater has received numerous awards for its banking services and esteemed corporate culture. With total assets of $5.3 billion as of March 31, 2026 and nine strategically located branches, Bridgewater is one of the largest locally-led banks in Minnesota and is committed to being the finest entrepreneurial bank. For more information, please visit www.bridgewaterbankmn.com.

Use of Non-GAAP Financial Measures

In addition to the results presented in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company routinely supplements its evaluation with an analysis of certain non-GAAP financial measures. The Company believes these 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 peers. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of non-GAAP disclosures used in this earnings release to the comparable GAAP measures are provided in the accompanying tables.

Forward-Looking Statements

This earnings release contains “forward-looking statements” within the meanings of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, identified by words such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized”, “target” and “outlook”, or the negative version of those words or other comparable words of a future or forward-looking nature.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent known and unknown uncertainties, risks, changes in circumstances and other factors that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: interest rate risk, including the effects of changes in interest rates; effects on the U.S. economy resulting from actions taken by the federal government, including the threat or implementation of tariffs, immigration enforcement, executive orders, and changes in foreign policy; fluctuations in the values of the securities held in our securities portfolio, including as the result of changes in interest rates; business and economic conditions generally and in the financial services industry, nationally and within our market area, including the level and impact of inflation, and future monetary policies of the Federal Reserve and executive orders in response thereto, and possible recession; credit risk and risks from concentrations (including by type of borrower, geographic area, collateral and industry) within the Company’s loan portfolio or large loans to certain borrowers (including CRE loans); the overall health of the local and national real estate market; our ability to successfully manage credit risk; our ability to maintain an adequate level of allowance for credit losses on loans; new or revised accounting standards as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board, Securities and Exchange Commission or Public Company Accounting Oversight Board; the concentration of large deposits from certain clients, including those who have balances above current Federal Deposit Insurance Corporation insurance limits; our ability to successfully manage liquidity risk, which may increase our dependence on non-core funding sources such as brokered deposits, and negatively impact our cost of funds; our ability to raise additional capital to implement our business plan; our ability to implement our growth strategy and manage costs effectively; the composition of our senior leadership team and our ability to attract and retain key personnel; talent and labor shortages and employee turnover; the occurrence of fraudulent activity, breaches or failures of our or our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; interruptions involving our information technology and telecommunications systems or third-party servicers; competition in the financial services industry, including from nonbank competitors such as credit unions, “fintech” companies and digital asset service providers; the effectiveness of our risk management framework; rapid technological changes implemented by us and other parties in the financial services industry, including third-party vendors, which may be more difficult to implement or more expensive than anticipated or which may have unforeseen consequence to us and our customers, including the development and implementation of tools incorporating artificial intelligence; the commencement, cost and outcome of litigation and other legal proceedings and regulatory actions against us; the impact of recent and future legislative and regulatory changes, domestic or foreign; risks related to climate change and the negative impact it may have on our customers and their businesses; the imposition of tariffs or other governmental policies impacting the global supply chain and the value of products produced by our commercial borrowers; severe weather, natural disasters, widespread disease or pandemics, acts of war, military conflicts, or terrorism, changes in foreign relations, or other adverse external events, including the wars in Iran and Ukraine, and other international conflicts; potential impairment to the goodwill the Company recorded in connection with acquisitions; risks associated with our integration of FMCB, and the effect of the merger on the Company’s customer and employee relationships and operating results; changes to U.S. or state tax laws, regulations and governmental policies concerning the Company’s general business, including changes in interpretation or prioritization of such rules and regulations; the impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Bridgewater Bancshares, Inc. and Subsidiaries Financial Highlights (dollars in thousands, except share data)

As of and for the Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

(dollars in thousands)

2026

2025

(Unaudited)

Income Statement

Net Interest Income

36,647

35,687

34,091

32,452

30,208

Provision for Credit Losses

1,200

1,450

1,100

2,000

1,500

Noninterest Income

9,564

3,148

2,061

3,627

2,079

Noninterest Expense

22,170

20,238

19,956

18,941

18,136

Net Income

17,406

13,334

11,601

11,520

9,633

Net Income Available to Common Shareholders

16,393

12,320

10,588

10,506

8,620

Per Common Share Data

Basic Earnings Per Share

0.59

0.45

0.38

0.31

Diluted Earnings Per Share

0.58

0.43

0.38

0.31

Adjusted Diluted Earnings Per Share (1)

0.41

0.44

0.39

0.37

0.32

Book Value Per Share

16.60

16.23

15.62

14.92

14.60

Tangible Book Value Per Share (1)

15.93

15.55

14.93

14.21

13.89

Basic Weighted Average Shares Outstanding

27,800,091

27,641,138

27,504,840

27,460,982

27,568,772

Diluted Weighted Average Shares Outstanding

28,490,176

28,354,756

28,190,406

27,998,008

28,036,506

Shares Outstanding at Period End

27,832,867

27,759,970

27,584,732

27,470,283

27,560,150

Financial Ratios

Return on Average Assets (2)

1.35

0.97

0.86

0.90

0.77

Pre-Provision Net Revenue Return on Average Assets (1)(2)

1.30

1.35

1.19

1.27

1.13

Return on Average Shareholders' Equity (2)

13.45

10.38

9.47

9.80

8.39

Return on Average Tangible Common Equity (1)(2)

15.13

11.53

10.50

10.93

9.22

Net Interest Margin (3)

2.99

2.75

2.63

2.62

2.51

Core Net Interest Margin (1)(3)

2.86

2.62

2.52

2.49

2.37

Cost of Total Deposits

2.79

2.97

3.19

3.16

3.18

Cost of Funds

2.90

3.07

3.25

3.19

3.17

Efficiency Ratio (1)

56.3

51.6

54.7

52.6

55.5

Noninterest Expense to Average Assets (2)

1.71

1.48

1.47

1.45

Adjusted Financial Ratios (1)

Adjusted Return on Average Assets (2)

0.98

0.99

0.88

0.80

Adjusted Pre-Provision Net Revenue Return on Average Assets (2)

1.37

1.38

1.23

1.31

1.18

Adjusted Return on Average Shareholders' Equity (2)

9.76

10.54

9.77

9.64

8.77

Adjusted Return on Average Tangible Common Equity (2)

10.72

11.72

10.86

10.74

9.68

Adjusted Efficiency Ratio

53.8

50.7

53.2

51.5

53.7

Adjusted Noninterest Expense to Average Assets (2)

1.64

1.45

1.43

1.41

Balance Sheet

Total Assets

5,335,396

5,407,002

5,359,994

5,296,673

5,136,808

Total Loans, Gross

4,368,042

4,309,517

4,214,554

4,145,799

4,020,076

Deposits

4,305,511

4,320,369

4,292,764

4,236,742

4,162,457

Total Shareholders' Equity

528,424

517,095

497,463

476,282

468,975

Loan to Deposit Ratio

101.5

99.7

98.2

97.9

96.6

Core Deposits to Total Deposits (4)

78.4

77.6

76.4

75.2

76.2

Asset Quality

Net Loan Charge-Offs to Average Loans (2)

0.05

0.11

0.03

0.00

Nonperforming Assets to Total Assets (5)

0.22

0.41

0.19

0.20

Allowance for Credit Losses to Total Loans

1.31

1.34

1.35

1.34

As of and for the Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

(dollars in thousands)

2026

2025

(Unaudited)

Capital Ratios (Consolidated) (6)

Tier 1 Leverage Ratio

9.89

9.20

9.02

9.14

9.10

Common Equity Tier 1 Risk-based Capital Ratio

9.53

9.17

9.08

9.03

Tier 1 Risk-based Capital Ratio

10.94

10.57

10.52

10.51

10.55

Total Risk-based Capital Ratio

14.48

14.12

14.17

13.62

Tangible Common Equity to Tangible Assets (1)

8.34

8.01

7.71

7.40

7.48

__________________________________

Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.

Annualized.

Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of 21%.

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

Nonperforming assets are defined as nonaccrual loans plus 90 days past due and still accruing plus foreclosed assets.

Preliminary data. Current period subject to change prior to filings with applicable regulatory agencies.

Bridgewater Bancshares, Inc. and Subsidiaries Consolidated Balance Sheets (dollars in thousands, except share data)

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

(Unaudited)

Assets

Cash and Cash Equivalents

222,154

123,511

131,818

217,495

166,205

Bank-Owned Certificates of Deposit

—

3,658

3,897

4,139

Securities Available for Sale, at Fair Value

566,565

776,441

826,473

743,889

764,626

Loans, Net of Allowance for Credit Losses

4,302,132

4,244,108

4,149,882

4,082,405

3,959,092

Federal Home Loan Bank (FHLB) Stock, at Cost

18,398

21,122

21,373

21,472

18,984

Premises and Equipment, Net

52,784

51,576

50,955

49,979

49,442

Foreclosed Assets

—

185

—

Accrued Interest

15,841

18,929

19,244

17,711

17,700

Goodwill

11,982

Other Intangible Assets, Net

6,703

6,930

7,160

7,390

7,620

Bank-Owned Life Insurance

45,219

46,576

46,121

45,413

45,025

Other Assets

93,618

105,827

91,328

94,855

91,993

Total Assets

5,335,396

5,407,002

5,359,994

5,296,673

5,136,808

Liabilities and Equity

Liabilities

Deposits:

Noninterest Bearing

828,845

923,070

822,632

787,868

791,528

Interest Bearing

3,476,666

3,397,299

3,470,132

3,448,874

3,370,929

Total Deposits

4,305,511

4,320,369

4,292,764

4,236,742

4,162,457

Notes Payable

—

13,750

FHLB Advances

336,000

399,500

404,500

349,500

Subordinated Debentures, Net of Issuance Costs

108,782

108,677

108,588

108,689

79,766

Accrued Interest Payable

4,254

3,227

5,208

4,110

4,525

Other Liabilities

52,425

58,134

51,471

52,600

57,835

Total Liabilities

4,806,972

4,889,907

4,862,531

4,820,391

4,667,833

Shareholders' Equity

Preferred Stock- $0.01 par value; Authorized 10,000,000

Preferred Stock - Issued and Outstanding 27,600 Series A shares ($2,500 liquidation preference) at March 31, 2026 (unaudited), December 31, 2025, September 30, 2025 (unaudited), June 30, 2025 (unaudited), and March 31, 2025 (unaudited)

66,514

Common Stock- $0.01 par value; Authorized 75,000,000

Common Stock - Issued and Outstanding 27,832,867 at March 31, 2026 (unaudited), 27,759,970 at December 31, 2025, 27,584,732 at September 30, 2025 (unaudited), 27,470,283 at June 30, 2025 (unaudited), and 27,560,150 at March 31, 2025 (unaudited)

278

276

275

276

Additional Paid-In Capital

99,564

98,287

97,101

95,174

95,503

Retained Earnings

367,848

351,455

339,135

328,547

318,041

Accumulated Other Comprehensive Gain (Loss)

(5,780

)

561

(5,563

)

(14,228

)

(11,359

)

Total Shareholders' Equity

528,424

517,095

497,463

476,282

468,975

Total Liabilities and Equity

5,335,396

5,407,002

5,359,994

5,296,673

5,136,808

Bridgewater Bancshares, Inc. and Subsidiaries Consolidated Statements of Income (dollars in thousands, except per share data)

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

(Unaudited)

Interest Income

Loans, Including Fees

61,726

61,444

60,038

57,888

53,820

Investment Securities

6,923

9,720

10,371

9,200

9,397

Other

1,316

2,145

3,224

2,110

2,491

Total Interest Income

69,965

73,309

73,633

69,198

65,708

Interest Expense

Deposits

28,793

32,203

34,615

32,497

32,103

Federal Funds Purchased

238

—

Notes Payable

—

106

260

258

FHLB Advances

2,438

3,524

2,933

2,852

2,156

Subordinated Debentures

1,849

1,890

1,888

1,121

983

Total Interest Expense

33,318

37,622

39,542

36,746

35,500

Net Interest Income

36,647

35,687

34,091

32,452

30,208

Provision for Credit Losses

1,200

1,450

1,100

2,000

1,500

Net Interest Income After Provision for Credit Losses

35,447

34,237

32,991

30,452

28,708

Noninterest Income

Customer Service Fees

527

521

501

496

495

Net Gain on Sales of Securities

7,251

474

Letter of Credit Fees

185

668

383

323

455

Debit Card Interchange Fees

201

178

173

152

137

Swap Fees

240

651

—

938

Bank-Owned Life Insurance

447

455

440

387

379

Investment Advisory Fees

213

227

208

213

325

FHLB Prepayment Income

—

301

—

Other Income

500

368

297

343

245

Total Noninterest Income

9,564

3,148

2,061

3,627

2,079

Noninterest Expense

Salaries and Employee Benefits

13,492

12,434

12,229

11,363

11,371

Occupancy and Equipment

1,375

1,171

1,266

1,274

1,234

FDIC Insurance Assessment

780

770

775

750

450

Data Processing

611

638

637

625

619

Professional and Consulting Fees

1,196

1,404

1,261

1,110

994

Derivative Collateral Fees

168

237

309

372

451

Information Technology and Telecommunications

1,067

976

973

971

Marketing and Advertising

776

718

658

435

327

Intangible Asset Amortization

226

231

230

FHLB Prepayment Penalty

982

—

Other Expense

1,497

1,659

1,618

1,811

1,489

Total Noninterest Expense

22,170

20,238

19,956

18,941

18,136

Income Before Income Taxes

22,841

17,147

15,096

15,138

12,651

Provision for Income Taxes

5,435

3,813

3,495

3,618

3,018

Net Income

17,406

13,334

11,601

11,520

9,633

Preferred Stock Dividends

(1,013

)

(1,014

)

(1,013

)

(1,014

)

(1,013

)

Net Income Available to Common Shareholders

16,393

12,320

10,588

10,506

8,620

Earnings Per Share

Basic

0.59

0.45

0.38

0.31

Diluted

0.58

0.43

0.38

0.31

Bridgewater Bancshares, Inc. and Subsidiaries Analysis of Average Balances, Yields and Rates (dollars in thousands, except per share data) (Unaudited)

For the Three Months Ended

March 31, 2026

December 31, 2025

March 31, 2025

Average

Interest

Yield/

Average

Interest

Yield/

Average

Interest

Yield/

(dollars in thousands)

Balance

& Fees

Rate

Balance

& Fees

Rate

Balance

& Fees

Rate

Interest Earning Assets:

Cash Investments

97,488

771

3.21

182,129

1,649

3.59

205,897

2,056

4.05

Investment Securities:

Taxable Investment Securities

506,154

5,530

4.43

671,444

8,001

4.73

768,591

9,033

4.77

Tax-Exempt Investment Securities (1)

119,582

1,764

5.98

147,832

2,177

5.84

35,549

461

5.26

Total Investment Securities

625,736

7,294

4.73

819,276

10,178

4.93

804,140

9,494

4.79

Loans (1)(2)

4,336,869

62,102

5.81

4,239,936

61,746

5.78

3,899,258

53,979

5.61

Federal Home Loan Bank Stock

19,337

546

11.45

23,359

496

8.43

18,988

435

9.28

Total Interest Earning Assets

5,079,430

70,713

5.65

5,264,700

74,069

5.58

4,928,283

65,964

5.43

Noninterest Earning Assets

163,331

173,855

143,163

Total Assets

5,242,761

5,438,555

5,071,446

Interest Bearing Liabilities:

Deposits:

Interest Bearing Transaction Deposits

888,301

6,936

3.17

891,419

7,912

3.52

855,564

8,189

3.88

Savings and Money Market Deposits

1,411,090

11,423

3.28

1,445,588

12,597

3.46

1,302,349

11,935

3.72

Time Deposits

252,426

2,333

3.75

333,904

3,282

3.90

328,902

3,309

4.08

Brokered Deposits

804,618

8,101

4.08

775,750

8,412

4.30

834,866

8,670

4.21

Total Interest Bearing Deposits

3,356,435

28,793

3.48

3,446,661

32,203

3.71

3,321,681

32,103

3.92

Federal Funds Purchased

24,478

238

3.95

496

4.22

—

Notes Payable

—

13,750

258

7.60

FHLB Advances

336,472

2,438

2.94

449,065

3,524

3.11

354,556

2,156

2.47

Subordinated Debentures

108,730

1,849

6.90

108,629

1,890

6.90

79,710

983

5.00

Total Interest Bearing Liabilities

3,826,115

33,318

3.53

4,004,851

37,622

3.73

3,769,697

35,500

3.82

Noninterest Bearing Liabilities:

Noninterest Bearing Transaction Deposits

834,916

854,687

767,235

Other Noninterest Bearing Liabilities

56,905

69,362

69,106

Total Noninterest Bearing Liabilities

891,821

924,049

836,341

Shareholders' Equity

524,825

509,655

465,408

Total Liabilities and Shareholders' Equity

5,242,761

5,438,555

5,071,446

Net Interest Income / Interest Rate Spread

37,395

2.11

36,447

1.86

30,464

1.61

Net Interest Margin (3)

2.99

2.75

2.51

Taxable Equivalent Adjustment:

Tax-Exempt Investment Securities and Loans

(748

)

(760

)

(256

)

Net Interest Income

36,647

35,687

30,208

_________________________________

Interest income and average rates for tax-exempt investment securities and loans are presented on a tax-equivalent basis, assuming a statutory federal income tax rate of 21%.

Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.

Net interest margin includes the tax equivalent adjustment and represents the annualized results of: (i) the difference between interest income on interest earning assets and the interest expense on interest bearing liabilities, divided by (ii) average interest earning assets for the period.

Bridgewater Bancshares, Inc. and Subsidiaries Asset Quality Summary (unaudited)

As of and for the Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

(dollars in thousands)

2026

2025

Allowance for Credit Losses

Balance at Beginning of Period

56,443

56,390

55,765

53,766

52,277

Provision for Credit Losses

1,350

1,250

900

2,000

1,500

Charge-offs

(658

)

(1,259

)

(276

)

(12

)

Recoveries

142

Net Charge-offs

(516

)

(1,197

)

(275

)

(11

)

Balance at End of Period

57,277

56,443

56,390

55,765

53,766

Allowance for Credit Losses to Total Loans

1.31

1.34

1.35

1.34

As of and for the Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

(dollars in thousands)

2026

2025

Provision for Credit Losses on Loans and Leases

1,350

1,250

900

2,000

1,500

Provision for (Recovery of) Credit Losses for Off-Balance Sheet Credit Exposures

(150

)

200

—

Provision for Credit Losses

1,200

1,450

1,100

2,000

1,500

As of and for the Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

(dollars in thousands)

2026

2025

Selected Asset Quality Data

Loans 30-89 Days Past Due

494

968

2,906

12,492

466

Loans 30-89 Days Past Due to Total Loans

0.01

0.02

0.07

0.30

0.01

Nonperforming Loans

11,715

22,034

9,991

10,134

10,290

Nonperforming Loans to Total Loans

0.27

0.51

0.24

0.26

Nonaccrual Loans to Total Loans

0.27

0.51

0.24

0.26

Nonaccrual Loans and Loans Past Due 90 Days and Still Accruing to Total Loans

0.27

0.51

0.24

0.26

Foreclosed Assets

—

185

—

Nonperforming Assets (1)

11,715

22,034

9,991

10,319

10,290

Nonperforming Assets to Total Assets (1)

0.22

0.41

0.19

0.20

Net Loan Charge-Offs (Annualized) to Average Loans

0.05

0.11

0.03

0.00

Watchlist/Special Mention Risk Rating Loans

47,681

47,823

40,642

53,282

38,346

Substandard Risk Rating Loans

43,074

52,956

58,074

44,986

31,587

_________________________________

Bridgewater Bancshares, Inc. and Subsidiaries Non-GAAP Financial Measures (unaudited)

For the Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

(dollars in thousands)

2026

2025

Pre-Provision Net Revenue

Noninterest Income

9,564

3,148

2,061

3,627

2,079

Less: Gain on Sales of Securities

(7,251

)

(80

)

(59

)

(474

)

Less: FHLB Advance Prepayment Income

—

(301

)

—

Total Operating Noninterest Income

2,313

3,068

2,002

2,852

2,078

Plus: Net Interest Income

36,647

35,687

34,091

32,452

30,208

Net Operating Revenue

38,960

38,755

36,093

35,304

32,286

Noninterest Expense

22,170

20,238

19,956

18,941

18,136

Total Operating Noninterest Expense

22,170

20,238

19,956

18,941

18,136

Pre-Provision Net Revenue

16,790

18,517

16,137

16,363

14,150

Plus:

Non-Operating Revenue Adjustments

7,251

775

Less:

Provision for Credit Losses

1,200

1,450

1,100

2,000

1,500

Provision for Income Taxes

5,435

3,813

3,495

3,618

3,018

Net Income

17,406

13,334

11,601

11,520

9,633

Average Assets

5,242,761

5,438,555

5,372,443

5,162,182

5,071,446

Pre-Provision Net Revenue Return on Average Assets

1.30

1.35

1.19

1.27

1.13

Adjusted Pre-Provision Net Revenue

Net Operating Revenue

38,960

38,755

36,093

35,304

32,286

Noninterest Expense

22,170

20,238

19,956

18,941

18,136

Less: Merger-related Expenses

—

(346

)

(530

)

(540

)

(565

)

Less: FHLB Prepayment Penalty

(982

)

—

Adjusted Total Operating Noninterest Expense

21,188

19,892

19,426

18,401

17,571

Adjusted Pre-Provision Net Revenue

17,772

18,863

16,667

16,903

14,715

Adjusted Pre-Provision Net Revenue Return on Average Assets

1.37

1.38

1.23

1.31

1.18

Core Net Interest Margin

Net Interest Income (Tax-equivalent Basis)

37,395

36,447

34,614

32,770

30,464

Less:

Loan Fees

(1,257

)

(1,041

)

(966

)

(1,019

)

(719

)

Purchase Accounting Accretion:

Loan Accretion

(324

)

(546

)

(380

)

(425

)

(342

)

Bond Accretion

(22

)

(33

)

(89

)

(152

)

(578

)

Bank-Owned Certificates of Deposit Accretion

—

(16

)

Deposit Certificates of Deposit Accretion

—

(13

)

(37

)

(38

)

Total Purchase Accounting Accretion

(346

)

(595

)

(488

)

(618

)

(965

)

Core Net Interest Income (Tax-equivalent Basis)

35,792

34,811

33,160

31,133

28,780

Average Interest Earning Assets

5,079,430

5,264,700

5,223,139

5,019,058

4,928,283

Core Net Interest Margin

2.86

2.62

2.52

2.49

2.37

Core Loan Yield

Loan Interest Income (Tax-equivalent Basis)

62,102

61,746

60,317

58,122

53,979

Less:

Loan Fees

(1,257

)

(1,041

)

(966

)

(1,019

)

(719

)

Loan Accretion

(324

)

(546

)

(380

)

(425

)

(342

)

Core Loan Interest Income

60,521

60,159

58,971

56,678

52,918

Average Loans

4,336,869

4,239,936

4,132,987

4,064,540

3,899,258

Core Loan Yield

5.66

5.63

5.66

5.59

5.50

Bridgewater Bancshares, Inc. and Subsidiaries Non-GAAP Financial Measures (unaudited)

For the Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

(dollars in thousands)

2026

2025

Efficiency Ratio

Noninterest Expense

22,170

20,238

19,956

18,941

18,136

Less: Amortization of Intangible Assets

(226

)

(231

)

(230

)

(230

)

(230

)

Adjusted Noninterest Expense

21,944

20,007

19,726

18,711

17,906

Net Interest Income

36,647

35,687

34,091

32,452

30,208

Noninterest Income

9,564

3,148

2,061

3,627

2,079

Less: Gain on Sales of Securities

(7,251

)

(80

)

(59

)

(474

)

Adjusted Operating Revenue

38,960

38,755

36,093

35,605

32,286

Efficiency Ratio

56.3

51.6

54.7

52.6

55.5

Adjusted Efficiency Ratio

Noninterest Expense

22,170

20,238

19,956

18,941

18,136

Less: Amortization of Intangible Assets

(226

)

(231

)

(230

)

(230

)

(230

)

Less: Merger-related Expenses

—

(346

)

(530

)

(540

)

(565

)

Less: FHLB Advance Prepayment Penalty

(982

)

—

Adjusted Noninterest Expense

20,962

19,661

19,196

18,171

17,341

Net Interest Income

36,647

35,687

34,091

32,452

30,208

Noninterest Income

9,564

3,148

2,061

3,627

2,079

Less: Gain on Sales of Securities

(7,251

)

(80

)

(59

)

(474

)

Less: FHLB Advance Prepayment Income

—

(301

)

—

Adjusted Operating Revenue

38,960

38,755

36,093

35,304

32,286

Adjusted Efficiency Ratio

53.8

50.7

53.2

51.5

53.7

Adjusted Noninterest Expense to Average Assets (Annualized)

Noninterest Expense

22,170

20,238

19,956

18,941

18,136

Less: Merger-related Expenses

—

(346

)

(530

)

(540

)

(565

)

Less: FHLB Advance Prepayment Penalty

(982

)

—

Adjusted Noninterest Expense

21,188

19,892

19,426

18,401

17,571

Average Assets

5,242,761

5,438,555

5,372,443

5,162,182

5,071,446

Adjusted Noninterest Expense to Average Assets (Annualized)

1.64

1.45

1.43

1.41

Tangible Common Equity and Tangible Common Equity/Tangible Assets

Total Shareholders' Equity

528,424

517,095

497,463

476,282

468,975

Less: Preferred Stock

(66,514

)

(66,514

)

(66,514

)

(66,514

)

(66,514

)

Total Common Shareholders' Equity

461,910

450,581

430,949

409,768

402,461

Less: Intangible Assets

(18,685

)

(18,912

)

(19,142

)

(19,372

)

(19,602

)

Tangible Common Equity

443,225

431,669

411,807

390,396

382,859

Total Assets

5,335,396

5,407,002

5,359,994

5,296,673

5,136,808

Less: Intangible Assets

(18,685

)

(18,912

)

(19,142

)

(19,372

)

(19,602

)

Tangible Assets

5,316,711

5,388,090

5,340,852

5,277,301

5,117,206

Tangible Common Equity/Tangible Assets

8.34

8.01

7.71

7.40

7.48

Tangible Book Value Per Share

Book Value Per Common Share

16.60

16.23

15.62

14.92

14.60

Less: Effects of Intangible Assets

(0.67

)

(0.68

)

(0.69

)

(0.71

)

(0.71

)

Tangible Book Value Per Common Share

15.93

15.55

14.93

14.21

13.89

Return on Average Tangible Common Equity

Net Income Available to Common Shareholders

16,393

12,320

10,588

10,506

8,620

Average Shareholders' Equity

524,825

509,655

485,869

471,700

465,408

Less: Average Preferred Stock

(66,514

)

(66,514

)

(66,514

)

(66,514

)

(66,514

)

Average Common Equity

458,311

443,141

419,355

405,186

398,894

Less: Effects of Average Intangible Assets

(18,816

)

(19,042

)

(19,274

)

(19,504

)

(19,738

)

Average Tangible Common Equity

439,495

424,099

400,081

385,682

379,156

Return on Average Tangible Common Equity

15.13

11.53

10.50

10.93

9.22

Bridgewater Bancshares, Inc. and Subsidiaries Non-GAAP Financial Measures (unaudited)

For the Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

(dollars in thousands)

2026

2025

Adjusted Diluted Earnings Per Common Share

Net Income Available to Common Shareholders

16,393

12,320

10,588

10,506

8,620

Add: Merger-related Expenses

—

346

530

540

565

Add: FHLB Advance Prepayment Penalty

982

—

Less: FHLB Advance Prepayment Income

—

(301

)

—

Less: Gain on Sales of Securities

(7,251

)

(80

)

(59

)

(474

)

Total Adjustments

(6,269

)

266

471

(235

)

564

Less: Tax Impact of Adjustments

1,492

(59

)

(110

)

(135

)

Adjusted Net Income Available to Common Shareholders

11,616

12,527

10,949

10,327

9,049

Diluted Weighted Average Shares Outstanding

28,490,176

28,354,756

28,190,406

27,998,008

28,036,506

Adjusted Diluted Earnings Per Common Share

0.41

0.44

0.39

0.37

0.32

Adjusted Return on Average Assets

Net Income

17,406

13,334

11,601

11,520

9,633

Add: Total Adjustments

(6,269

)

266

471

(235

)

564

Less: Tax Impact of Adjustments

1,492

(59

)

(110

)

(135

)

Adjusted Net Income

12,629

13,541

11,962

11,341

10,062

Average Assets

5,242,761

5,438,555

5,372,443

5,162,182

5,071,446

Adjusted Return on Average Assets

0.98

0.99

0.88

0.80

Adjusted Return on Average Shareholders' Equity

Adjusted Net Income

12,629

13,541

11,962

11,341

10,062

Average Shareholders' Equity

524,825

509,655

485,869

471,700

465,408

Adjusted Return on Average Shareholders' Equity

9.76

10.54

9.77

9.64

8.77

Adjusted Return on Average Tangible Common Equity

Adjusted Net Income Available to Common Shareholders

11,616

12,527

10,949

10,327

9,049

Average Tangible Common Equity

439,495

424,099

400,081

385,682

379,156

Adjusted Return on Average Tangible Common Equity

10.72

11.72

10.86

10.74

9.68

View source version on businesswire.com: https://www.businesswire.com/news/home/20260420952097/en/