Form 8-K
8-K — Bridgewater Bancshares Inc
Accession: 0001104659-26-117421
Filed: 2026-10-20
Period: 2026-10-20
CIK: 0001341317
SIC: 6022 (STATE COMMERCIAL BANKS)
Item: Results of Operations and Financial Condition
Item: Regulation FD Disclosure
Item: Other Events
Item: Financial Statements and Exhibits
Documents
8-K — bwb-20261020x8k.htm (Primary)
EX-99.1 (bwb-ex99d1.htm)
EX-99.2 (bwb-ex99d2.htm)
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8-K
8-K (Primary)
Filename: bwb-20261020x8k.htm · Sequence: 1
BRIDGEWATER BANCSHARES, INC._October 20, 2026
0001341317false0001341317us-gaap:CommonStockMember2026-10-202026-10-200001341317bwb:DepositarySharesMember2026-10-202026-10-2000013413172026-10-202026-10-20
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
October 20, 2026
Date of Report
(Date of earliest event reported)
BRIDGEWATER BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
Minnesota
(State or other jurisdiction of
incorporation)
001-38412
(Commission File Number)
26-0113412
(I.R.S. Employer
Identification No.)
4450 Excelsior Boulevard, Suite 100
St. Louis Park, Minnesota
(Address of principal executive offices)
55416
(Zip Code)
Registrant’s telephone number, including area code: (952) 893-6868
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class:
Trading Symbol
Name of each exchange on which registered:
Common Stock, $0.01 Par Value
Depositary Shares, each representing a 1/100th interest in a share of 5.875% Non-Cumulative Perpetual Preferred Stock, Series A
BWB
BWBBP
The NASDAQ Stock Market LLC
The NASDAQ Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 20, 2026, Bridgewater Bancshares, Inc. (the “Company”) issued a press release announcing its financial results as of and for the three months ended September 30, 2026. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information furnished in this item of this Form 8-K, and the related exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.
Item 7.01 Regulation FD Disclosure.
The Company hereby furnishes the Earnings Presentation attached hereto as Exhibit 99.2.
The information furnished in this item of this Form 8-K, and the related exhibits, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.
Item 8.01 Other Events.
On October 20, 2026, in its 2026 third quarter earnings release, the Company announced that its Board of Directors had 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 depository share, each representing a 1/100th interest in a share of the Series A Preferred Stock (Nasdaq: BWBBP), is payable on December 1, 2026, to shareholders of record of the Series A Preferred Stock at the close of business on November 13, 2026.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit 99.1
Press Release of Bridgewater Bancshares, Inc., dated October 20, 2026, regarding third quarter 2026 financial results
Exhibit 99.2
Earnings Presentation dated October 20, 2026
Exhibit 104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Bridgewater Bancshares, Inc.
Date: October 20, 2026
By: /s/ Jerry Baack
Name: Jerry Baack
Title: Chairman and Chief Executive Officer
3
EX-99.1
EX-99.1
Filename: bwb-ex99d1.htm · Sequence: 2
Exhibit 99.1
Media Contact:
Emily Karpenske | Senior Communication Specialist
Emily.Karpenske@bwbmn.com | 952.653.0624
Investor Contact:
Justin Horstman | VP Investor Relations
Justin.Horstman@bwbmn.com | 952.542.5169
October 20, 2026
Bridgewater Bancshares, Inc. Announces Third Quarter 2026 Financial Results
Third Quarter 2026 Highlights
● Net income of $15.0 million, or $0.49 per diluted common share.
● Pre-provision net revenue(1) increased $2.9 million, or 60.4% annualized, from the second quarter of 2026.
● Net interest income increased $2.1 million, or 21.5% annualized, from the second quarter of 2026.
● Net interest margin (on a fully tax-equivalent basis) of 3.09%, an increase of two basis points from the second quarter of 2026.
● Efficiency ratio(1) of 48.8%, down from 53.0% for the second quarter of 2026.
● Gross loans increased by $80.4 million, or 7.2% annualized, from the second quarter of 2026.
● Total deposits increased by $126.8 million, or 11.6% annualized, from the second quarter of 2026.
● Core deposits(2) increased by $165.3 million, or 19.6% annualized, from the second quarter of 2026.
● Annualized net loan charge-offs as a percentage of average loans of 0.21%, up from 0.04% for the second quarter of 2026.
● Nonperforming assets to total assets of 0.37% at September 30, 2026, down from 0.40% at June 30, 2026.
● Tangible book value per share(1) of $16.33 at September 30, 2026, a decrease of 6.7% annualized from the second quarter of 2026.
● Common Equity Tier 1 Risk-Based Capital Ratio of 9.63%, up from 9.61% at June 30, 2026.
(1) Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.
(2) Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000.
Page 1 of 19
St. Louis Park, MN – Bridgewater Bancshares, Inc. (Nasdaq: BWB) (the “Company”), the parent company of Bridgewater Bank (the “Bank”), today announced net income of $15.0 million for the third quarter of 2026, compared to $14.0 million for the second quarter of 2026, and $11.6 million for the third quarter of 2025. Earnings per diluted common share were $0.49 for the third quarter of 2026, compared to $0.45 for the second quarter of 2026, and $0.38 for the third quarter of 2025.
“Bridgewater delivered an impressive quarter highlighted by strong profitability and balance sheet growth as we continued to execute on our profitable growth strategy,” said Chairman and Chief Executive Officer, Jerry Baack. “Across-the-board revenue growth and well-controlled expenses in the third quarter resulted in a meaningful increase in pre-provision net revenue and an efficiency ratio below 50% for the first time since the first quarter of 2023. In addition, we generated robust core deposit growth during the quarter, which supported our organic loan growth engine, improved our overall deposit mix, and helped drive continued net interest margin expansion.
“Looking ahead, our balance sheet is better positioned today for a higher interest rate environment given our intentional mix shift toward more variable-rate loans over the past few years. Our teams continue to deliver an unconventional level of service that deepens existing client relationships and creates new ones, reinforcing our ability to sustain profitable growth and generate long-term value for shareholders.”
Page 2 of 19
Key Financial Measures
As of and for the Three Months Ended
As of and for the Nine Months Ended
September 30,
June 30,
September 30,
September 30,
September 30,
2026
2026
2025
2026
2025
Per Common Share Data
Basic Earnings Per Share
$
0.50
$
0.47
$
0.38
$
1.56
$
1.08
Diluted Earnings Per Share
0.49
0.45
0.38
1.52
1.06
Adjusted Diluted Earnings Per Share (1)
0.49
0.45
0.39
1.35
1.08
Book Value Per Share
16.98
17.27
15.62
16.98
15.62
Tangible Book Value Per Share (1)
16.33
16.61
14.93
16.33
14.93
Financial Ratios
Return on Average Assets (2)
1.08
%
1.06
%
0.86
%
1.16
%
0.84
%
Pre-Provision Net Revenue Return on Average Assets (1)(2)
1.57
1.43
1.19
1.44
1.20
Return on Average Shareholders' Equity (2)
10.81
10.17
9.47
11.43
9.23
Return on Average Tangible Common Equity (1)(2)
11.91
11.15
10.50
12.67
10.23
Net Interest Margin (3)
3.09
3.07
2.63
3.05
2.59
Core Net Interest Margin (1)(3)
2.98
2.94
2.52
2.93
2.46
Cost of Total Deposits
2.78
2.80
3.19
2.79
3.18
Cost of Funds
2.92
2.91
3.25
2.91
3.20
Yield on Loans
5.96
5.91
5.79
5.89
5.71
Efficiency Ratio (1)
48.8
53.0
54.7
52.6
54.2
Noninterest Expense to Average Assets (2)
1.53
1.65
1.47
1.63
1.46
Tangible Common Equity to Tangible Assets (1)
8.16
8.62
7.71
8.16
7.71
Common Equity Tier 1 Risk-based Capital Ratio (Consolidated) (4)
9.63
9.61
9.08
9.63
9.08
Adjusted Financial Ratios (1)
Adjusted Return on Average Assets (2)
1.08
%
1.06
%
0.88
%
1.04
%
0.86
%
Adjusted Pre-Provision Net Revenue Return on Average Assets (2)
1.57
1.43
1.23
1.46
1.24
Adjusted Return on Average Shareholders' Equity (2)
10.81
10.17
9.77
10.24
9.41
Adjusted Return on Average Tangible Common Equity (2)
11.91
11.15
10.86
11.26
10.44
Adjusted Efficiency Ratio
48.8
53.0
53.2
51.8
52.8
Adjusted Noninterest Expense to Average Assets (2)
1.53
1.65
1.43
1.61
1.42
Balance Sheet and Asset Quality (dollars in thousands)
Total Assets
$
5,615,482
$
5,389,726
$
5,359,994
$
5,615,482
$
5,359,994
Total Loans, Gross
4,506,834
4,426,389
4,214,554
4,506,834
4,214,554
Deposits
4,473,019
4,346,204
4,292,764
4,473,019
4,292,764
Loan to Deposit Ratio
100.8
%
101.8
%
98.2
%
100.8
%
98.2
%
Net Loan Charge-Offs to Average Loans (2)
0.21
0.04
0.03
0.10
0.01
Nonperforming Assets to Total Assets (5)
0.37
0.40
0.19
0.37
0.19
Allowance for Credit Losses to Total Loans
1.28
1.30
1.34
1.28
1.34
(1) Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.
(2) Annualized.
(3) Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of 21%.
(4) Preliminary data. Current period subject to change prior to filings with applicable regulatory agencies.
(5) Nonperforming assets are defined as nonaccrual loans plus 90 days past due and still accruing plus foreclosed assets.
Page 3 of 19
Income Statement
Net Interest Margin and Net Interest Income
Net interest margin (on a fully tax-equivalent basis) for the third quarter of 2026 was 3.09%, a two basis point increase from 3.07% in the second quarter of 2026, and a 46 basis point increase from 2.63% in the third 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 2.98% for the third quarter of 2026, a four basis point increase from 2.94% in the second quarter of 2026, and a 46 basis point increase from 2.52% in the third quarter of 2025.
● Net interest margin expanded to 3.09% in the third quarter of 2026 primarily due to growth and repricing of the loan and investment securities portfolios at higher yields.
● The year-over-year expansion in net interest margin was primarily due to growth and repricing of the loan portfolio at higher yields and lower rates paid on deposits.
Net interest income was $40.7 million for the third quarter of 2026, an increase of $2.1 million from $38.6 million in the second quarter of 2026, and an increase of $6.6 million from $34.1 million in the third quarter of 2025.
● The linked-quarter increase in net interest income was primarily driven by growth in the loan and investment securities portfolios at higher yields and higher cash balances, offset partially by higher deposit balances.
● The year-over-year increase in net interest income was primarily due to growth in the loan portfolio at higher yields and lower rates paid on deposits, offset partially by lower balances and yields in the investment securities portfolio and lower cash balances.
Interest income was $76.6 million for the third quarter of 2026, an increase of $4.0 million from $72.7 million in the second quarter of 2026, and an increase of $3.0 million from $73.6 million in the third quarter of 2025.
● The yield on interest earning assets (on a fully tax-equivalent basis) was 5.76% in the third quarter of 2026, compared to 5.73% in the second quarter of 2026, and 5.63% in the third quarter of 2025.
● The linked-quarter increase in the yield on interest earning assets (on a fully tax-equivalent basis) was primarily driven by growth and repricing of the loan portfolio at higher yields and higher yielding investment securities balances.
● The year-over-year increase in the yield on interest earning assets (on a fully tax-equivalent basis) was primarily due to growth and repricing of the loan portfolio at accretive yields.
● The aggregate loan yield was 5.96% in the third quarter of 2026, five basis points higher than 5.91% in the second quarter of 2026, and 17 basis points higher than 5.79% in the third quarter of 2025.
● Core loan yield, a non-GAAP financial measure, was 5.82% in the third quarter of 2026, six basis points higher than 5.76% in the second quarter of 2026, and 16 basis points higher than 5.66% in the third quarter of 2025.
A summary of interest and fees recognized on loans for the periods indicated is as follows:
Three Months Ended
September 30, 2026
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
Interest
5.82
%
5.76
%
5.66
%
5.63
%
5.66
%
Fees
0.12
0.13
0.12
0.10
0.09
Accretion
0.02
0.02
0.03
0.05
0.04
Yield on Loans
5.96
%
5.91
%
5.81
%
5.78
%
5.79
%
Interest expense was $36.0 million for the third quarter of 2026, an increase of $1.9 million from $34.1 million in the second quarter of 2026, and a decrease of $3.6 million from $39.5 million in the third quarter of 2025.
● The cost of interest bearing liabilities was 3.54% in the third quarter of 2026, compared to 3.51% in the second quarter of 2026, and 3.89% in the third quarter of 2025.
● The linked-quarter increase in the cost of interest bearing liabilities was primarily due to higher balances and rates paid on interest bearing transaction deposits, time deposits, and FHLB advances.
● The year-over-year decrease in the cost of interest bearing liabilities was primarily due to lower rates paid on interest bearing deposits.
Interest expense on deposits was $30.9 million for the third quarter of 2026, an increase of $1.2 million from $29.7 million in the second quarter of 2026, and a decrease of $3.7 million from $34.6 million in the third quarter of 2025.
Page 4 of 19
● The cost of total deposits was 2.78% in the third quarter of 2026, two basis points lower than 2.80% in the second quarter of 2026, and 41 basis points lower than 3.19% in the third quarter of 2025.
● The linked-quarter decrease in the cost of total deposits was primarily due to lower rates paid on brokered deposits and an increase in noninterest bearing deposits.
● The year-over-year decrease in the cost of total deposits was primarily due to lower rates paid on deposits following interest rate cuts in 2025 and an increase in noninterest bearing deposits.
Provision for Credit Losses
The provision for credit losses on loans and leases was $2.8 million for the third quarter of 2026, compared to $550,000 for the second quarter of 2026, and $900,000 for the third quarter of 2025.
● The provision recorded in the third quarter of 2026 was primarily attributable to growth in the loan portfolio and an additional specific reserve.
● The allowance for credit losses on loans to total loans was 1.28% at September 30, 2026, compared to 1.30% at June 30, 2026, and 1.34% at September 30, 2025.
The provision for credit losses for off-balance sheet credit exposures was $-0- for both the second and third quarters of 2026, compared to a provision of $200,000 for the third quarter of 2025.
Noninterest Income
Noninterest income was $2.6 million for the third quarter of 2026, an increase of $249,000 from $2.3 million for the second quarter of 2026, and an increase of $512,000 from $2.1 million for the third quarter of 2025.
● The linked-quarter increase was primarily due to higher letter of credit fees, offset partially by lower swap fees.
● The year-over-year increase was primarily due to higher letter of credit fees and swap fees.
Noninterest Expense
Noninterest expense was $21.3 million for the third quarter of 2026, a decrease of $553,000 from $21.9 million for the second quarter of 2026, and an increase of $1.4 million from $20.0 million for the third quarter of 2025.
● The linked-quarter decrease was primarily due to lower marketing and advertising expenses and lower professional and consulting costs, offset partially by higher salaries and employee benefits.
● The year-over-year increase was primarily attributable to increases in salaries and employee benefits and information technology expenses.
● Noninterest expense for the second and third quarters of 2026 included no merger-related expenses associated with the acquisition of FMCB, compared to merger-related expenses of $530,000 for the third quarter of 2025, which is considered a non-core item.
● The efficiency ratio (on a fully tax-equivalent basis), a non-GAAP financial measure, was 48.8% for the third quarter of 2026, compared to 53.0% for the second quarter of 2026, and 54.7% for the third quarter of 2025.
● The Company had 360 full-time equivalent employees at September 30, 2026, compared to 355 at June 30, 2026, and 325 at September 30, 2025. The linked-quarter and the year-over-year increases were primarily driven by hiring of key talent across the organization.
Income Taxes
The effective combined federal and state income tax rate was 21.5% for the third quarter of 2026, compared to 24.1% for the second quarter of 2026, and 23.2% for the third quarter of 2025.
● The linked-quarter and the year-over-year decreases were primarily due to the increase in tax-exempt interest income following the purchase of tax-exempt municipal securities investments.
Page 5 of 19
Balance Sheet
Loans
(dollars in thousands)
September 30, 2026
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
Commercial
$
627,569
$
591,034
$
593,406
$
547,245
$
533,476
Leases
41,854
41,802
41,791
43,407
43,186
Construction and Land Development
229,478
186,248
209,421
216,163
159,991
1-4 Family Construction
57,825
46,539
50,629
45,152
41,739
Real Estate Mortgage:
1-4 Family Mortgage
456,458
485,288
488,029
496,142
487,297
Multifamily
1,661,765
1,690,566
1,590,091
1,587,338
1,578,223
CRE Owner Occupied
191,664
191,153
188,588
189,754
192,966
CRE Nonowner Occupied
1,211,595
1,168,863
1,185,371
1,165,104
1,158,622
Total Real Estate Mortgage Loans
3,521,482
3,535,870
3,452,079
3,438,338
3,417,108
Consumer and Other
28,626
24,896
20,716
19,212
19,054
Total Loans, Gross
4,506,834
4,426,389
4,368,042
4,309,517
4,214,554
Allowance for Credit Losses on Loans
(57,819)
(57,418)
(57,277)
(56,443)
(56,390)
Net Deferred Loan Fees
(8,889)
(8,469)
(8,633)
(8,966)
(8,282)
Total Loans, Net
$
4,440,126
$
4,360,502
$
4,302,132
$
4,244,108
$
4,149,882
Total gross loans at September 30, 2026 were $4.51 billion, an increase of $80.4 million, or 7.2% annualized, compared to total gross loans of $4.43 billion at June 30, 2026, and an increase of $292.3 million, or 6.9%, compared to total gross loans of $4.21 billion at September 30, 2025.
● The increase in the loan portfolio during the third quarter of 2026 was primarily due to growth in the construction and land development, commercial real estate (“CRE”) nonowner occupied, and commercial portfolios.
Deposits
(dollars in thousands)
September 30, 2026
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
Noninterest Bearing Transaction Deposits
$
893,817
$
830,952
$
828,845
$
923,070
$
822,632
Interest Bearing Transaction Deposits
947,073
944,502
899,911
893,740
860,774
Savings and Money Market Deposits
1,538,271
1,435,582
1,497,517
1,380,922
1,428,726
Time Deposits
298,804
243,694
232,959
312,154
346,214
Brokered Deposits
795,054
891,474
846,279
810,483
834,418
Total Deposits
$
4,473,019
$
4,346,204
$
4,305,511
$
4,320,369
$
4,292,764
Total deposits at September 30, 2026 were $4.47 billion, an increase of $126.8 million, or 11.6% annualized, compared to total deposits of $4.35 billion at June 30, 2026, and an increase of $180.3 million, or 4.2%, compared to total deposits of $4.29 billion at September 30, 2025.
● Core deposits, defined as total deposits excluding brokered deposits and certificates of deposit greater than $250,000, increased $165.3 million, or 19.6% annualized, from June 30, 2026, and increased $234.3 million, or 7.1%, from September 30, 2025.
● Noninterest bearing transaction deposits increased $62.9 million, or 30.0% annualized, from June 30, 2026, and increased $71.2 million, or 8.7%, from September 30, 2025.
● Brokered deposits decreased $96.4 million from June 30, 2026, and decreased $39.4 million from September 30, 2025. Consistent with historical practice, brokered deposits continue to be used as a supplemental funding source, as needed.
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.
● Annualized net charge-offs as a percentage of average loans were 0.21% for the third quarter of 2026, compared to 0.04% for the second quarter of 2026, and 0.03% for the third quarter of 2025.
● At September 30, 2026, the Company’s nonperforming assets, which included nonaccrual loans, loans past due 90 days and still
Page 6 of 19
accruing, and foreclosed assets, were $20.9 million, or 0.37% of total assets, compared to $21.6 million, or 0.40% of total assets, at June 30, 2026, and $10.0 million, or 0.19% of total assets, at September 30, 2025.
● Loans with potential weaknesses that warranted a watch/special mention risk rating at September 30, 2026 totaled $23.6 million, compared to $38.5 million at June 30, 2026, and $40.6 million at September 30, 2025.
● Loans that warranted a substandard risk rating at September 30, 2026 totaled $42.9 million, compared to $43.9 million at June 30, 2026, and $58.1 million at September 30, 2025.
Capital
Total shareholders’ equity at September 30, 2026 was $541.4 million, a decrease of $6.5 million, or 4.7% annualized, compared to $547.9 million at June 30, 2026, and an increase of $43.9 million, or 8.8%, over $497.5 million at September 30, 2025.
● The linked-quarter decrease was primarily due to an increase in unrealized losses in the investment securities portfolio and preferred stock dividends, offset partially by net income retained and an increase in unrealized gains in the derivatives portfolio.
● The year-over-year increase was primarily due to net income retained and an increase in unrealized gains in the derivatives portfolio, offset partially by an increase in unrealized losses in the investment securities portfolio, preferred stock dividends and stock repurchases.
● The Consolidated Common Equity Tier 1 Risk-Based Capital Ratio was 9.63% at September 30, 2026, compared to 9.61% at June 30, 2026, and 9.08% at September 30, 2025.
● Tangible common equity as a percentage of tangible assets, a non-GAAP financial measure, was 8.16% at September 30, 2026, compared to 8.62% at June 30, 2026, and 7.71% at September 30, 2025.
Tangible book value per share, a non-GAAP financial measure, was $16.33 as of September 30, 2026, a decrease of 6.7% annualized from $16.61 as of June 30, 2026, and an increase of 9.4% from $14.93 as of September 30, 2025.
The Company did not repurchase any shares of its common stock during both the third quarter of 2026 and 2025, compared to 38,659 shares repurchased during the second quarter of 2026.
● The Company had $12.4 million remaining under its current share repurchase authorization at September 30, 2026.
The Company did not sell any shares during the third quarter of 2026 as part of its existing at-the-market offering.
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 December 1, 2026 to shareholders of record of the Series A Preferred Stock at the close of business on November 13, 2026.
Conference Call and Webcast
The Company will host a conference call to discuss its third quarter 2026 financial results on Wednesday, October 21, 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 9617563. The replay will be available through October 28, 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 $5.6 billion as of September 30, 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.
Page 7 of 19
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 the recent increase in the benchmark federal funds rate by the Federal Reserve; 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 consequences to us and our customers, including the development and implementation of tools incorporating artificial intelligence; emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation, or otherwise materially harm our business or customers; 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
Page 8 of 19
conflicts, or terrorism, changes in foreign relations, or other adverse external events, including the wars in Iran and Ukraine, ongoing conflicts in the Middle East and other international military conflicts that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, affect global supply chains, increase the volatility of financial markets, and other matters beyond our control; potential impairment to the goodwill the Company recorded in connection with acquisitions; the availability of future equity and debt issuances and other capital raising opportunities on favorable terms; 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.
Page 9 of 19
Bridgewater Bancshares, Inc. and Subsidiaries
Financial Highlights
(dollars in thousands, except share data)
As of and for the Three Months Ended
September 30,
June 30,
March 31,
December 31,
September 30,
(dollars in thousands)
2026
2026
2026
2025
2025
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Income Statement
Net Interest Income
$
40,658
$
38,566
$
36,647
$
35,687
$
34,091
Provision for Credit Losses
2,750
550
1,200
1,450
1,100
Noninterest Income
2,573
2,324
9,564
3,148
2,061
Noninterest Expense
21,341
21,894
22,170
20,238
19,956
Net Income
15,028
14,007
17,406
13,334
11,601
Net Income Available to Common Shareholders
14,015
12,993
16,393
12,320
10,588
Per Common Share Data
Basic Earnings Per Share
$
0.50
$
0.47
$
0.59
$
0.45
$
0.38
Diluted Earnings Per Share
0.49
0.45
0.58
0.43
0.38
Adjusted Diluted Earnings Per Share (1)
0.49
0.45
0.41
0.44
0.39
Book Value Per Share
16.98
17.27
16.60
16.23
15.62
Tangible Book Value Per Share (1)
16.33
16.61
15.93
15.55
14.93
Basic Weighted Average Shares Outstanding
27,923,824
27,861,522
27,800,091
27,641,138
27,504,840
Diluted Weighted Average Shares Outstanding
28,796,376
28,589,332
28,490,176
28,354,756
28,190,406
Shares Outstanding at Period End
27,960,252
27,880,830
27,832,867
27,759,970
27,584,732
Financial Ratios
Return on Average Assets (2)
1.08
%
1.06
%
1.35
%
0.97
%
0.86
%
Pre-Provision Net Revenue Return on Average Assets (1)(2)
1.57
1.43
1.30
1.35
1.19
Return on Average Shareholders' Equity (2)
10.81
10.17
13.45
10.38
9.47
Return on Average Tangible Common Equity (1)(2)
11.91
11.15
15.13
11.53
10.50
Net Interest Margin (3)
3.09
3.07
2.99
2.75
2.63
Core Net Interest Margin (1)(3)
2.98
2.94
2.86
2.62
2.52
Cost of Total Deposits
2.78
2.80
2.79
2.97
3.19
Cost of Funds
2.92
2.91
2.90
3.07
3.25
Yield on Loans
5.96
5.91
5.81
5.78
5.79
Efficiency Ratio (1)
48.8
53.0
56.3
51.6
54.7
Noninterest Expense to Average Assets (2)
1.53
1.65
1.71
1.48
1.47
Adjusted Financial Ratios (1)
Adjusted Return on Average Assets (2)
1.08
%
1.06
%
0.98
%
0.99
%
0.88
%
Adjusted Pre-Provision Net Revenue Return on Average Assets (2)
1.57
1.43
1.37
1.38
1.23
Adjusted Return on Average Shareholders' Equity (2)
10.81
10.17
9.76
10.54
9.77
Adjusted Return on Average Tangible Common Equity (2)
11.91
11.15
10.72
11.72
10.86
Adjusted Efficiency Ratio
48.8
53.0
53.8
50.7
53.2
Adjusted Noninterest Expense to Average Assets (2)
1.53
1.65
1.64
1.45
1.43
Balance Sheet
Total Assets
$
5,615,482
$
5,389,726
$
5,335,396
$
5,407,002
$
5,359,994
Total Loans, Gross
4,506,834
4,426,389
4,368,042
4,309,517
4,214,554
Deposits
4,473,019
4,346,204
4,305,511
4,320,369
4,292,764
Total Shareholders' Equity
541,392
547,909
528,424
517,095
497,463
Loan to Deposit Ratio
100.8
%
101.8
%
101.5
%
99.7
%
98.2
%
Core Deposits to Total Deposits (4)
78.5
77.0
78.4
77.6
76.4
Asset Quality
Net Loan Charge-Offs to Average Loans (2)
0.21
%
0.04
%
0.05
%
0.11
%
0.03
%
Nonperforming Assets to Total Assets (5)
0.37
0.40
0.22
0.41
0.19
Allowance for Credit Losses to Total Loans
1.28
1.30
1.31
1.31
1.34
Page 10 of 19
As of and for the Three Months Ended
September 30,
June 30,
March 31,
December 31,
September 30,
(dollars in thousands)
2026
2026
2026
2025
2025
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Capital Ratios (Consolidated) (6)
Tier 1 Leverage Ratio
9.94
%
10.02
%
9.89
%
9.20
%
9.02
%
Common Equity Tier 1 Risk-based Capital Ratio
9.63
9.61
9.53
9.17
9.08
Tier 1 Risk-based Capital Ratio
10.95
10.98
10.94
10.57
10.52
Total Risk-based Capital Ratio
14.24
14.48
14.48
14.12
14.12
Tangible Common Equity to Tangible Assets (1)
8.16
8.62
8.34
8.01
7.71
(1) Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.
(2) Annualized.
(3) Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of 21%.
(4) Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000.
(5) Nonperforming assets are defined as nonaccrual loans plus 90 days past due and still accruing plus foreclosed assets.
(6) Preliminary data. Current period subject to change prior to filings with applicable regulatory agencies.
Page 11 of 19
Bridgewater Bancshares, Inc. and Subsidiaries
Consolidated Balance Sheets
(dollars in thousands, except share data)
September 30,
June 30,
March 31,
December 31,
September 30,
2026
2026
2026
2025
2025
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Assets
Cash and Cash Equivalents
$
262,564
$
169,806
$
222,154
$
123,511
$
131,818
Bank-Owned Certificates of Deposit
—
—
—
—
3,658
Securities Available for Sale, at Fair Value
598,713
605,412
566,565
776,441
826,473
Loans, Net of Allowance for Credit Losses
4,440,126
4,360,502
4,302,132
4,244,108
4,149,882
Federal Home Loan Bank (FHLB) Stock, at Cost
21,189
17,979
18,398
21,122
21,373
Premises and Equipment, Net
52,530
52,730
52,784
51,576
50,955
Accrued Interest
16,818
16,946
15,841
18,929
19,244
Goodwill
11,982
11,982
11,982
11,982
11,982
Other Intangible Assets, Net
6,251
6,477
6,703
6,930
7,160
Bank-Owned Life Insurance
72,808
45,671
45,219
46,576
46,121
Other Assets
132,501
102,221
93,618
105,827
91,328
Total Assets
$
5,615,482
$
5,389,726
$
5,335,396
$
5,407,002
$
5,359,994
Liabilities and Equity
Liabilities
Deposits:
Noninterest Bearing
$
893,817
$
830,952
$
828,845
$
923,070
$
822,632
Interest Bearing
3,579,202
3,515,252
3,476,666
3,397,299
3,470,132
Total Deposits
4,473,019
4,346,204
4,305,511
4,320,369
4,292,764
FHLB Advances
396,000
326,000
336,000
399,500
404,500
Subordinated Debentures, Net of Issuance Costs
108,953
108,882
108,782
108,677
108,588
Accrued Interest Payable
4,372
2,565
4,254
3,227
5,208
Other Liabilities
91,746
58,166
52,425
58,134
51,471
Total Liabilities
5,074,090
4,841,817
4,806,972
4,889,907
4,862,531
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 September 30, 2026 (unaudited), June 30, 2026 (unaudited), March 31, 2026 (unaudited), December 31, 2025, and September 30, 2025 (unaudited)
66,514
66,514
66,514
66,514
66,514
Common Stock- $0.01 par value; Authorized 75,000,000
Common Stock - Issued and Outstanding 27,960,252 at September 30, 2026 (unaudited), 27,880,830 at June 30, 2026 (unaudited), 27,832,867 at March 31, 2026 (unaudited), 27,759,970 at December 31, 2025, and 27,584,732 at September 30, 2025 (unaudited)
280
279
278
278
276
Additional Paid-In Capital
102,605
100,868
99,564
98,287
97,101
Retained Earnings
394,856
380,841
367,848
351,455
339,135
Accumulated Other Comprehensive Gain (Loss)
(22,863)
(593)
(5,780)
561
(5,563)
Total Shareholders' Equity
541,392
547,909
528,424
517,095
497,463
Total Liabilities and Equity
$
5,615,482
$
5,389,726
$
5,335,396
$
5,407,002
$
5,359,994
Page 12 of 19
Bridgewater Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income
(dollars in thousands, except per share data)
Three Months Ended
Nine Months Ended
September 30,
June 30,
March 31,
December 31,
September 30,
September 30,
September 30,
2026
2026
2026
2025
2025
2026
2025
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Interest Income
Loans, Including Fees
$
66,732
$
64,146
$
61,726
$
61,444
$
60,038
$
192,604
$
171,746
Investment Securities
7,587
6,904
6,923
9,720
10,371
21,414
28,968
Other
2,326
1,606
1,316
2,145
3,224
5,248
7,825
Total Interest Income
76,645
72,656
69,965
73,309
73,633
219,266
208,539
Interest Expense
Deposits
30,943
29,711
28,793
32,203
34,615
89,447
99,215
Federal Funds Purchased
—
19
238
5
—
257
16
Notes Payable
—
—
—
—
106
—
624
FHLB Advances
2,995
2,494
2,438
3,524
2,933
7,927
7,941
Subordinated Debentures
2,049
1,866
1,849
1,890
1,888
5,764
3,992
Total Interest Expense
35,987
34,090
33,318
37,622
39,542
103,395
111,788
Net Interest Income
40,658
38,566
36,647
35,687
34,091
115,871
96,751
Provision for Credit Losses
2,750
550
1,200
1,450
1,100
4,500
4,600
Net Interest Income After Provision for Credit Losses
37,908
38,016
35,447
34,237
32,991
111,371
92,151
Noninterest Income
Customer Service Fees
537
520
527
521
501
1,584
1,492
Net Gain on Sales of Securities
—
—
7,251
80
59
7,251
534
Letter of Credit Fees
643
304
185
668
383
1,132
1,161
Debit Card Interchange Fees
222
230
201
178
173
653
462
Swap Fees
112
263
240
651
—
615
980
Bank-Owned Life Insurance
530
451
447
455
440
1,428
1,206
Investment Advisory Fees
304
260
213
227
208
778
746
FHLB Prepayment Income
—
—
—
—
—
—
301
Other Income
225
296
500
368
297
1,020
885
Total Noninterest Income
2,573
2,324
9,564
3,148
2,061
14,461
7,767
Noninterest Expense
Salaries and Employee Benefits
14,353
13,916
13,492
12,434
12,229
41,761
34,963
Occupancy and Equipment
1,286
1,360
1,375
1,171
1,266
4,021
3,774
FDIC Insurance Assessment
555
595
780
770
775
1,930
1,975
Data Processing
623
692
611
638
637
1,926
1,881
Professional and Consulting Fees
1,127
1,267
1,196
1,404
1,261
3,590
3,365
Derivative Collateral Fees
284
206
168
237
309
658
1,132
Information Technology and Telecommunications
1,183
1,258
1,067
976
973
3,508
2,915
Marketing and Advertising
354
604
776
718
658
1,734
1,420
Intangible Asset Amortization
226
227
226
231
230
679
690
FHLB Prepayment Penalty
—
—
982
—
—
982
—
Other Expense
1,350
1,769
1,497
1,659
1,618
4,616
4,918
Total Noninterest Expense
21,341
21,894
22,170
20,238
19,956
65,405
57,033
Income Before Income Taxes
19,140
18,446
22,841
17,147
15,096
60,427
42,885
Provision for Income Taxes
4,112
4,439
5,435
3,813
3,495
13,986
10,131
Net Income
15,028
14,007
17,406
13,334
11,601
46,441
32,754
Preferred Stock Dividends
(1,013)
(1,014)
(1,013)
(1,014)
(1,013)
(3,040)
(3,040)
Net Income Available to Common Shareholders
$
14,015
$
12,993
$
16,393
$
12,320
$
10,588
$
43,401
$
29,714
Earnings Per Share
Basic
$
0.50
$
0.47
$
0.59
$
0.45
$
0.38
$
1.56
$
1.08
Diluted
0.49
0.45
0.58
0.43
0.38
1.52
1.06
Page 13 of 19
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
September 30, 2026
June 30, 2026
September 30, 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
$
213,850
$
1,887
3.50
%
$
140,738
$
1,167
3.33
%
$
256,174
$
2,732
4.23
%
Investment Securities:
Taxable Investment Securities
446,156
5,046
4.49
460,567
5,233
4.56
730,643
9,448
5.13
Tax-Exempt Investment Securities (1)
199,173
3,217
6.41
144,241
2,115
5.88
81,962
1,168
5.66
Total Investment Securities
645,329
8,263
5.08
604,808
7,348
4.87
812,605
10,616
5.18
Loans (1)(2)
4,471,437
67,130
5.96
4,380,477
64,537
5.91
4,132,987
60,317
5.79
Federal Home Loan Bank Stock
19,924
439
8.75
18,692
438
9.39
21,373
492
9.12
Total Interest Earning Assets
5,350,540
77,719
5.76
%
5,144,715
73,490
5.73
%
5,223,139
74,157
5.63
%
Noninterest Earning Assets
170,949
172,500
149,304
Total Assets
$
5,521,489
$
5,317,215
$
5,372,443
Interest Bearing Liabilities:
Deposits:
Interest Bearing Transaction Deposits
$
970,042
$
7,995
3.27
%
$
931,588
$
7,504
3.23
%
$
843,905
$
8,037
3.78
%
Savings and Money Market Deposits
1,445,197
11,836
3.25
1,436,829
11,650
3.25
1,473,465
13,465
3.63
Time Deposits
291,668
2,726
3.71
230,949
2,089
3.63
342,926
3,703
4.28
Brokered Deposits
844,983
8,386
3.94
843,456
8,468
4.03
856,516
9,410
4.36
Total Interest Bearing Deposits
3,551,890
30,943
3.46
3,442,822
29,711
3.46
3,516,812
34,615
3.90
Federal Funds Purchased
—
—
—
1,901
19
3.90
—
—
—
Notes Payable
—
—
—
—
—
—
5,679
106
7.40
FHLB Advances
368,038
2,995
3.23
340,341
2,494
2.94
404,500
2,933
2.88
Subordinated Debentures
108,918
2,049
7.46
108,835
1,866
6.87
108,639
1,888
6.89
Total Interest Bearing Liabilities
4,028,846
35,987
3.54
%
3,893,899
34,090
3.51
%
4,035,630
39,542
3.89
%
Noninterest Bearing Liabilities:
Noninterest Bearing Transaction Deposits
864,046
808,295
793,760
Other Noninterest Bearing Liabilities
76,805
62,446
57,184
Total Noninterest Bearing Liabilities
940,851
870,741
850,944
Shareholders' Equity
551,792
552,575
485,869
Total Liabilities and Shareholders' Equity
$
5,521,489
$
5,317,215
$
5,372,443
Net Interest Income / Interest Rate Spread
41,732
2.22
%
39,400
2.22
%
34,615
1.74
%
Net Interest Margin (3)
3.09
%
3.07
%
2.63
%
Taxable Equivalent Adjustment:
Tax-Exempt Investment Securities and Loans
(1,074)
(834)
(524)
Net Interest Income
$
40,658
$
38,566
$
34,091
(1) 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%.
(2) Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.
(3) 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.
Page 14 of 19
Bridgewater Bancshares, Inc. and Subsidiaries
Analysis of Average Balances, Yields and Rates
(dollars in thousands, except per share data)
(Unaudited)
For the Nine Months Ended
September 30, 2026
September 30, 2025
Average
Interest
Yield/
Average
Interest
Yield/
(dollars in thousands)
Balance
& Fees
Rate
Balance
& Fees
Rate
Interest Earning Assets:
Cash Investments
$
151,118
$
3,825
3.38
%
$
210,525
$
6,469
4.11
%
Investment Securities:
Taxable Investment Securities
470,739
15,809
4.49
744,605
27,364
4.91
Tax-Exempt Investment Securities (1)
154,624
7,096
6.14
49,987
2,030
5.43
Total Investment Securities
625,363
22,905
4.90
794,592
29,394
4.95
Loans (1)(2)
4,396,754
193,769
5.89
4,034,656
172,418
5.71
Federal Home Loan Bank Stock
19,320
1,423
9.85
20,601
1,356
8.80
Total Interest Earning Assets
5,192,555
221,922
5.71
%
5,060,374
209,637
5.54
%
Noninterest Earning Assets
168,954
145,373
Total Assets
$
5,361,509
$
5,205,747
Interest Bearing Liabilities:
Deposits:
Interest Bearing Transaction Deposits
$
930,394
$
22,435
3.22
%
$
837,504
$
23,995
3.83
%
Savings and Money Market Deposits
1,431,164
34,909
3.26
1,383,876
38,092
3.68
Time Deposits
258,491
7,148
3.70
333,199
10,280
4.13
Brokered Deposits
831,167
24,955
4.01
841,750
26,848
4.26
Total Interest Bearing Deposits
3,451,216
89,447
3.47
3,396,329
99,215
3.91
Federal Funds Purchased
8,706
257
3.94
456
16
4.64
Notes Payable
—
—
—
11,030
624
7.57
FHLB Advances
348,399
7,927
3.04
388,026
7,941
2.74
Subordinated Debentures
108,829
5,764
7.08
90,853
3,992
5.87
Total Interest Bearing Liabilities
3,917,150
103,395
3.53
%
3,886,694
111,788
3.85
%
Noninterest Bearing Liabilities:
Noninterest Bearing Transaction Deposits
835,741
779,897
Other Noninterest Bearing Liabilities
65,455
64,878
Total Noninterest Bearing Liabilities
901,196
844,775
Shareholders' Equity
543,163
474,278
Total Liabilities and Shareholders' Equity
$
5,361,509
$
5,205,747
Net Interest Income / Interest Rate Spread
118,527
2.19
%
97,849
1.69
%
Net Interest Margin (3)
3.05
%
2.59
%
Taxable Equivalent Adjustment:
Tax-Exempt Investment Securities and Loans
(2,656)
(1,098)
Net Interest Income
$
115,871
$
96,751
(1) 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%.
(2) Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.
(3) 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.
Page 15 of 19
Bridgewater Bancshares, Inc. and Subsidiaries
Asset Quality Summary
(unaudited)
As of and for the Three Months Ended
As of and for the Nine Months Ended
September 30,
June 30,
March 31,
December 31,
September 30,
September 30,
September 30,
(dollars in thousands)
2026
2026
2026
2025
2025
2026
2025
Allowance for Credit Losses
Balance at Beginning of Period
$
57,418
$
57,277
$
56,443
$
56,390
$
55,765
$
56,443
$
52,277
Provision for Credit Losses
2,750
550
1,350
1,250
900
4,650
4,400
Charge-offs
(2,442)
(738)
(658)
(1,259)
(276)
(3,838)
(294)
Recoveries
93
329
142
62
1
564
7
Net Charge-offs
(2,349)
(409)
(516)
(1,197)
(275)
(3,274)
(287)
Balance at End of Period
$
57,819
$
57,418
$
57,277
$
56,443
$
56,390
$
57,819
$
56,390
Allowance for Credit Losses to Total Loans
1.28
%
1.30
%
1.31
%
1.31
%
1.34
%
1.28
%
1.34
%
As of and for the Three Months Ended
As of and for the Nine Months Ended
September 30,
June 30,
March 31,
December 31,
September 30,
September 30,
September 30,
(dollars in thousands)
2026
2026
2026
2025
2025
2026
2025
Provision for Credit Losses on Loans and Leases
$
2,750
$
550
$
1,350
$
1,250
$
900
$
4,650
$
4,400
Provision for (Recovery of) Credit Losses for Off-Balance Sheet Credit Exposures
—
—
(150)
200
200
(150)
200
Provision for Credit Losses
$
2,750
$
550
$
1,200
$
1,450
$
1,100
$
4,500
$
4,600
As of and for the Three Months Ended
September 30,
June 30,
March 31,
December 31,
September 30,
(dollars in thousands)
2026
2026
2026
2025
2025
Selected Asset Quality Data
Loans 30-89 Days Past Due
$
1,381
$
871
$
494
$
968
$
2,906
Loans 30-89 Days Past Due to Total Loans
0.03
%
0.02
%
0.01
%
0.02
%
0.07
%
Nonperforming Loans
$
20,937
$
21,648
$
11,715
$
22,034
$
9,991
Nonperforming Loans to Total Loans
0.46
%
0.49
%
0.27
%
0.51
%
0.24
%
Nonaccrual Loans to Total Loans
0.46
0.49
0.27
0.51
0.24
Nonaccrual Loans and Loans Past Due 90 Days and Still Accruing to Total Loans
0.46
0.49
0.27
0.51
0.24
Nonperforming Assets (1)
$
20,937
$
21,648
$
11,715
$
22,034
$
9,991
Nonperforming Assets to Total Assets (1)
0.37
%
0.40
%
0.22
%
0.41
%
0.19
%
Net Loan Charge-Offs (Annualized) to Average Loans
0.21
0.04
0.05
0.11
0.03
Watchlist/Special Mention Risk Rating Loans
$
23,607
$
38,469
$
47,681
$
47,823
$
40,642
Substandard Risk Rating Loans
42,909
43,888
43,074
52,956
58,074
(1) Nonperforming assets are defined as nonaccrual loans plus 90 days past due and still accruing plus foreclosed assets.
Page 16 of 19
Bridgewater Bancshares, Inc. and Subsidiaries
Non-GAAP Financial Measures
(unaudited)
For the Three Months Ended
For the Nine Months Ended
September 30,
June 30,
March 31,
December 31,
September 30,
September 30,
September 30,
(dollars in thousands)
2026
2026
2026
2025
2025
2026
2025
Pre-Provision Net Revenue
Noninterest Income
$
2,573
$
2,324
$
9,564
$
3,148
$
2,061
$
14,461
$
7,767
Less: Gain on Sales of Securities
—
—
(7,251)
(80)
(59)
(7,251)
(534)
Less: FHLB Advance Prepayment Income
—
—
—
—
—
—
(301)
Total Operating Noninterest Income
2,573
2,324
2,313
3,068
2,002
7,210
6,932
Plus: Net Interest Income
40,658
38,566
36,647
35,687
34,091
115,871
96,751
Net Operating Revenue
$
43,231
$
40,890
$
38,960
$
38,755
$
36,093
$
123,081
$
103,683
Noninterest Expense
$
21,341
$
21,894
$
22,170
$
20,238
$
19,956
$
65,405
$
57,033
Total Operating Noninterest Expense
$
21,341
$
21,894
$
22,170
$
20,238
$
19,956
$
65,405
$
57,033
Pre-Provision Net Revenue
$
21,890
$
18,996
$
16,790
$
18,517
$
16,137
$
57,676
$
46,650
Plus:
Non-Operating Revenue Adjustments
—
—
7,251
80
59
7,251
835
Less:
Provision for Credit Losses
2,750
550
1,200
1,450
1,100
4,500
4,600
Provision for Income Taxes
4,112
4,439
5,435
3,813
3,495
13,986
10,131
Net Income
$
15,028
$
14,007
$
17,406
$
13,334
$
11,601
$
46,441
$
32,754
Average Assets
$
5,521,489
$
5,317,215
$
5,242,761
$
5,438,555
$
5,372,443
$
5,361,509
$
5,205,747
Pre-Provision Net Revenue Return on Average Assets
1.57
%
1.43
%
1.30
%
1.35
%
1.19
%
1.44
%
1.20
%
Adjusted Pre-Provision Net Revenue
Net Operating Revenue
$
43,231
$
40,890
$
38,960
$
38,755
$
36,093
$
123,081
$
103,683
Noninterest Expense
$
21,341
$
21,894
$
22,170
$
20,238
$
19,956
$
65,405
$
57,033
Less: Merger-related Expenses
—
—
—
(346)
(530)
—
(1,635)
Less: FHLB Prepayment Penalty
—
—
(982)
—
—
(982)
—
Adjusted Total Operating Noninterest Expense
$
21,341
$
21,894
$
21,188
$
19,892
$
19,426
$
64,423
$
55,398
Adjusted Pre-Provision Net Revenue
$
21,890
$
18,996
$
17,772
$
18,863
$
16,667
$
58,658
$
48,285
Adjusted Pre-Provision Net Revenue Return on Average Assets
1.57
%
1.43
%
1.37
%
1.38
%
1.23
%
1.46
%
1.24
%
Core Net Interest Margin
Net Interest Income (Tax-equivalent Basis)
$
41,732
$
39,400
$
37,395
$
36,447
$
34,614
$
118,527
$
97,848
Less:
Loan Fees
(1,367)
(1,464)
(1,257)
(1,041)
(966)
(4,088)
(2,704)
Purchase Accounting Accretion:
Loan Accretion
(171)
(171)
(324)
(546)
(380)
(666)
(1,147)
Bond Accretion
(18)
(17)
(22)
(33)
(89)
(57)
(819)
Bank-Owned Certificates of Deposit Accretion
—
—
—
(16)
(6)
—
(17)
Deposit Certificates of Deposit Accretion
—
—
—
—
(13)
—
(88)
Total Purchase Accounting Accretion
(189)
(188)
(346)
(595)
(488)
(723)
(2,071)
Core Net Interest Income (Tax-equivalent Basis)
$
40,176
$
37,748
$
35,792
$
34,811
$
33,160
$
113,716
$
93,073
Average Interest Earning Assets
$
5,350,540
$
5,144,715
$
5,079,430
$
5,264,700
$
5,223,139
$
5,192,555
$
5,060,374
Core Net Interest Margin
2.98
%
2.94
%
2.86
%
2.62
%
2.52
%
2.93
%
2.46
%
Core Loan Yield
Loan Interest Income (Tax-equivalent Basis)
$
67,130
$
64,537
$
62,102
$
61,746
$
60,317
$
193,769
$
172,418
Less:
Loan Fees
(1,367)
(1,464)
(1,257)
(1,041)
(966)
(4,088)
(2,704)
Loan Accretion
(171)
(171)
(324)
(546)
(380)
(666)
(1,147)
Core Loan Interest Income
$
65,592
$
62,902
$
60,521
$
60,159
$
58,971
$
189,015
$
168,567
Average Loans
$
4,471,437
$
4,380,477
$
4,336,869
$
4,239,936
$
4,132,987
$
4,396,754
$
4,034,656
Core Loan Yield
5.82
%
5.76
%
5.66
%
5.63
%
5.66
%
5.75
%
5.59
%
Page 17 of 19
Bridgewater Bancshares, Inc. and Subsidiaries
Non-GAAP Financial Measures
(unaudited)
For the Three Months Ended
For the Nine Months Ended
September 30,
June 30,
March 31,
December 31,
September 30,
September 30,
September 30,
(dollars in thousands)
2026
2026
2026
2025
2025
2026
2025
Efficiency Ratio
Noninterest Expense
$
21,341
$
21,894
$
22,170
$
20,238
$
19,956
$
65,405
$
57,033
Less: Amortization of Intangible Assets
(226)
(227)
(226)
(231)
(230)
(679)
(690)
Adjusted Noninterest Expense
$
21,115
$
21,667
$
21,944
$
20,007
$
19,726
$
64,726
$
56,343
Net Interest Income
$
40,658
$
38,566
$
36,647
$
35,687
$
34,091
$
115,871
$
96,751
Noninterest Income
2,573
2,324
9,564
3,148
2,061
14,461
7,767
Less: Gain on Sales of Securities
—
—
(7,251)
(80)
(59)
(7,251)
(534)
Adjusted Operating Revenue
$
43,231
$
40,890
$
38,960
$
38,755
$
36,093
$
123,081
$
103,984
Efficiency Ratio
48.8
%
53.0
%
56.3
%
51.6
%
54.7
%
52.6
%
54.2
%
Adjusted Efficiency Ratio
Noninterest Expense
$
21,341
$
21,894
$
22,170
$
20,238
$
19,956
$
65,405
$
57,033
Less: Amortization of Intangible Assets
(226)
(227)
(226)
(231)
(230)
(679)
(690)
Less: Merger-related Expenses
—
—
—
(346)
(530)
—
(1,635)
Less: FHLB Advance Prepayment Penalty
—
—
(982)
—
—
(982)
—
Adjusted Noninterest Expense
$
21,115
$
21,667
$
20,962
$
19,661
$
19,196
$
63,744
$
54,708
Net Interest Income
$
40,658
$
38,566
$
36,647
$
35,687
$
34,091
$
115,871
$
96,751
Noninterest Income
2,573
2,324
9,564
3,148
2,061
14,461
7,767
Less: Gain on Sales of Securities
—
—
(7,251)
(80)
(59)
(7,251)
(534)
Less: FHLB Advance Prepayment Income
—
—
—
—
—
—
(301)
Adjusted Operating Revenue
$
43,231
$
40,890
$
38,960
$
38,755
$
36,093
$
123,081
$
103,683
Adjusted Efficiency Ratio
48.8
%
53.0
%
53.8
%
50.7
%
53.2
%
51.8
%
52.8
%
Adjusted Noninterest Expense to Average Assets (Annualized)
Noninterest Expense
$
21,341
$
21,894
$
22,170
$
20,238
$
19,956
$
65,405
$
57,033
Less: Merger-related Expenses
—
—
—
(346)
(530)
—
(1,635)
Less: FHLB Advance Prepayment Penalty
—
—
(982)
—
—
(982)
—
Adjusted Noninterest Expense
$
21,341
$
21,894
$
21,188
$
19,892
$
19,426
$
64,423
$
55,398
Average Assets
$
5,521,489
$
5,317,215
$
5,242,761
$
5,438,555
$
5,372,443
$
5,361,509
$
5,205,747
Adjusted Noninterest Expense to Average Assets (Annualized)
1.53
%
1.65
%
1.64
%
1.45
%
1.43
%
1.61
%
1.42
%
Tangible Common Equity and Tangible Common Equity/Tangible Assets
Total Shareholders' Equity
$
541,392
$
547,909
$
528,424
$
517,095
$
497,463
Less: Preferred Stock
(66,514)
(66,514)
(66,514)
(66,514)
(66,514)
Total Common Shareholders' Equity
474,878
481,395
461,910
450,581
430,949
Less: Intangible Assets
(18,233)
(18,459)
(18,685)
(18,912)
(19,142)
Tangible Common Equity
$
456,645
$
462,936
$
443,225
$
431,669
$
411,807
Total Assets
$
5,615,482
$
5,389,726
$
5,335,396
$
5,407,002
$
5,359,994
Less: Intangible Assets
(18,233)
(18,459)
(18,685)
(18,912)
(19,142)
Tangible Assets
$
5,597,249
$
5,371,267
$
5,316,711
$
5,388,090
$
5,340,852
Tangible Common Equity/Tangible Assets
8.16
%
8.62
%
8.34
%
8.01
%
7.71
%
Tangible Book Value Per Share
Book Value Per Common Share
$
16.98
$
17.27
$
16.60
$
16.23
$
15.62
Less: Effects of Intangible Assets
(0.65)
(0.66)
(0.67)
(0.68)
(0.69)
Tangible Book Value Per Common Share
$
16.33
$
16.61
$
15.93
$
15.55
$
14.93
Return on Average Tangible Common Equity
Net Income Available to Common Shareholders
$
14,015
$
12,993
$
16,393
$
12,320
$
10,588
$
43,401
$
29,714
Average Shareholders' Equity
$
551,792
$
552,575
$
524,825
$
509,655
$
485,869
$
543,163
$
474,278
Less: Average Preferred Stock
(66,514)
(66,514)
(66,514)
(66,514)
(66,514)
(66,514)
(66,514)
Average Common Equity
485,278
486,061
458,311
443,141
419,355
476,649
407,764
Less: Effects of Average Intangible Assets
(18,361)
(18,588)
(18,816)
(19,042)
(19,274)
(18,587)
(19,504)
Average Tangible Common Equity
$
466,917
$
467,473
$
439,495
$
424,099
$
400,081
$
458,062
$
388,260
Return on Average Tangible Common Equity
11.91
%
11.15
%
15.13
%
11.53
%
10.50
%
12.67
%
10.23
%
Page 18 of 19
Bridgewater Bancshares, Inc. and Subsidiaries
Non-GAAP Financial Measures
(unaudited)
For the Three Months Ended
For the Nine Months Ended
September 30,
June 30,
March 31,
December 31,
September 30,
September 30,
September 30,
(dollars in thousands)
2026
2026
2026
2025
2025
2026
2025
Adjusted Diluted Earnings Per Common Share
Net Income Available to Common Shareholders
$
14,015
$
12,993
$
16,393
$
12,320
$
10,588
$
43,401
$
29,714
Add: Merger-related Expenses
—
—
—
346
530
—
1,635
Add: FHLB Advance Prepayment Penalty
—
—
982
—
—
982
—
Less: FHLB Advance Prepayment Income
—
—
—
—
—
—
(301)
Less: Gain on Sales of Securities
—
—
(7,251)
(80)
(59)
(7,251)
(534)
Total Adjustments
—
—
(6,269)
266
471
(6,269)
800
Less: Tax Impact of Adjustments
—
—
1,492
(59)
(110)
1,448
(189)
Adjusted Net Income Available to Common Shareholders
$
14,015
$
12,993
$
11,616
$
12,527
$
10,949
$
38,580
$
30,325
Diluted Weighted Average Shares Outstanding
28,796,376
28,589,332
28,490,176
28,354,756
28,190,406
28,644,219
28,089,409
Adjusted Diluted Earnings Per Common Share
$
0.49
$
0.45
$
0.41
$
0.44
$
0.39
$
1.35
$
1.08
Adjusted Return on Average Assets
Net Income
$
15,028
$
14,007
$
17,406
$
13,334
$
11,601
$
46,441
$
32,754
Add: Total Adjustments
—
—
(6,269)
266
471
(6,269)
800
Less: Tax Impact of Adjustments
—
—
1,492
(59)
(110)
1,448
(189)
Adjusted Net Income
$
15,028
$
14,007
$
12,629
$
13,541
$
11,962
$
41,620
$
33,365
Average Assets
$
5,521,489
$
5,317,215
$
5,242,761
$
5,438,555
$
5,372,443
$
5,361,509
$
5,205,747
Adjusted Return on Average Assets
1.08
%
1.06
%
0.98
%
0.99
%
0.88
%
1.04
%
0.86
%
Adjusted Return on Average Shareholders' Equity
Adjusted Net Income
$
15,028
$
14,007
$
12,629
$
13,541
$
11,962
$
41,620
$
33,365
Average Shareholders' Equity
$
551,792
$
552,575
$
524,825
$
509,655
$
485,869
$
543,163
$
474,278
Adjusted Return on Average Shareholders' Equity
10.81
%
10.17
%
9.76
%
10.54
%
9.77
%
10.24
%
9.41
%
Adjusted Return on Average Tangible Common Equity
Adjusted Net Income Available to Common Shareholders
$
14,015
$
12,993
$
11,616
$
12,527
$
10,949
$
38,580
$
30,325
Average Tangible Common Equity
$
466,917
$
467,473
$
439,495
$
424,099
$
400,081
$
458,062
$
388,260
Adjusted Return on Average Tangible Common Equity
11.91
%
11.15
%
10.72
%
11.72
%
10.86
%
11.26
%
10.44
%
Page 19 of 19
EX-99.2
EX-99.2
Filename: bwb-ex99d2.htm · Sequence: 3
Exhibit 99.2
2
Disclaimer
Forward-Looking Statements
This presentation 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 the recent increase in the benchmark federal funds rate by the Federal Reserve; 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 commercial real estate (“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 (the “SEC”) 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; emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation, or otherwise materially harm our business or customers; 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, wide spread 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, ongoing conflicts in the
Middle East and other international military conflicts that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, affect global supply chains, increase the volatility of financial
markets, and other matters beyond our control; potential impairment to the goodwill the Company recorded in connection with acquisitions; the availability of future equity and debt issuances and other capital raising opportunities on
favorable terms; 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 SEC.
Any forward-looking statement made by us in this presentation 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. Certain of the information contained in this presentation is derived
from information provided by industry sources. Although the Company believes that such information is accurate and that the sources from which it has been obtained are reliable, the Company cannot guarantee the accuracy of, and
has not independently verified, such information.
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 to the comparable GAAP measures are provided in this presentation.
3
3Q26 Earnings Highlights
• Pre-provision net revenue1
increased $2.9M, or 60.4% annualized, from 2Q26
• Total revenue increased $2.3M, or 22.7% annualized, from 2Q26
• Noninterest expense decreased $0.6M, or 10.0% annualized, from 2Q26
• Efficiency ratio1 of 48.8%, down from 53.0% in 2Q26
0.37%
• Loan balances increased $80M, or 7.2% annualized, from 2Q26
• Deposit balances increased $127M, or 11.6% annualized, from 2Q26; core deposit2 balances increased $165M, or 19.6% annualized
• YTD loan growth of 6.1% annualized, inline with core deposit2 growth of 6.4%
• Positive deposit mix shift as noninterest-bearing deposits increased $63M in 3Q26 and brokered deposits declined $96M
• Net interest income increased $2.1M, or 21.5% annualized, from 2Q26
• Net interest margin (NIM) of 3.09%, up 2 bps from 2Q26
• Yield on total loans of 5.96%, up 5 bps from 2Q26
• Better positioned for a rates-up environment with the variable-rate mix of the loan portfolio at 26%, up from 15% in 3Q24
Profitable
Balance Sheet
Growth
Net Interest
Income Growth and
NIM Expansion
$0.49
Diluted
EPS
Nonperforming Assets
to Total Assets
Efficiency
Ratio1
Return on
Average Assets
Return on Avg. Tangible
Common Equity1
1.08% 11.91% 48.8%
1 Represents a non-GAAP financial measure. See Appendix for non-GAAP reconciliation
2 Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000
• Nonperforming assets to total assets of 0.37%, down from 0.40% in 2Q26
• Annualized net charge-offs to average loans of 0.21%, up from 0.04% in 2Q26, related to one mixed-use multifamily loan
• Watch / special mention loans declined $14.9 million, or 38.6%, from June 30, 2026
• Well-reserved with allowance to total loans of 1.28%, down 2 bps from June 30, 2026
Strong
Asset Quality
Profile
Strong
Profitability
Momentum
4
Consistent Tangible Book Value Per Share1
Outperformance
49%
30%
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
2Q25
3Q25
4Q25
1Q26
2Q26
3Q26
BWB Peer Bank Average2
Acquisition of
First Minnetonka City Bank
1 Represents a non-GAAP financial measure. See Appendix for non-GAAP reconciliation
2
Includes publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion as of June 30, 2026 with growth rate through 2Q26 (Source: S&P Capital IQ)
BWB Tangible Book Value Per Share Up 9.4% YoY
5
Strong Profitability and Revenue Trends Continue
PPNR ROA1
$34,091 $35,687 $36,647 $38,566 $40,658
$2,061
$3,148
$9,564
$2,324
$2,573
$36,152
$38,835
$46,211
$40,890
$43,231
3Q25 4Q25 1Q26 2Q26 3Q26
$16,137
$18,517
$16,790
$18,996
$21,890
$11,601
$13,334
$17,406
$14,007
$15,028
1.19%
1.35%
1.30%
1.43%
1.57%
1.23%
1.38% 1.37%
0.86%
0.97%
1.35%
0.88% 1.06% 1.08%
0.99%
0.98%
3Q25 4Q25 1Q26 2Q26 3Q26
PPNR Net Income 1 ROA
1 Represents a non-GAAP financial measure. See Appendix for non-GAAP reconciliation
Dollars in thousands
Adj. PPNR ROA1 Adj. ROA1
Pre-Provision Net Revenue (PPNR)1 Growth of 36% YoY Total Revenue Growth of 20% YoY
Net Interest Income Noninterest Income
Swap Fees $ -- $ 651 $ 240 $ 263 $112
6
NIM Expansion and Net Interest Income Growth
$32,637 $34,051 $35,044 $36,914 $39,102
$966 $1,041
$1,257
$1,464
$1,367
$488
$595
$346
$188
$189
$34,091
$35,687 $36,647
$38,566
$40,658
2.63%
2.75%
2.99% 3.07% 3.09%
2.52%
2.62%
2.86% 2.94% 2.98%
3Q25 4Q25 1Q26 2Q26 3Q26
Net Interest Margin1
Core Net Interest Income
Loan Fees
Net Interest Income and Margin Trends
3.07%
0.10%
0.04% 0.01%
(0.07)%
(0.04)%
(0.02)%
0.00%
3.09%
NIM
(2Q26)
Loan
Fees
Purchase
Accounting
Accretion
Loans Investments Cash Deposits Borrowings NIM
(3Q26)
Net Interest Margin Roll-forward
3Q26 Net Interest Income / Net Interest Margin Commentary
1 Amounts calculated on a tax-equivalent basis using statutory federal tax rate of 21%
2 Represents a non-GAAP financial measure. See Appendix for non-GAAP reconciliation
Dollars in thousands
Net Interest Income
• Net interest income growth of 22% annualized from 2Q26, driven by both
earning asset growth and net interest margin expansion
• Average interest earning assets up $206M, or 16% annualized, from 2Q26
Net Interest Margin
• NIM increased 2 bps in 3Q26
• Loan portfolio continued to reprice higher
• Deposit costs remained relatively stable
• Better positioned for rising rate environment due to increased variable-rate
loan mix (26% in 3Q26 vs. 15% in 3Q24)
Core NIM2 up 4 bps
Core Net Interest Margin1,2
Purchase Accounting Accretion (PAA)
7
Higher Loan Repricing Drives NIM Expansion
$3,517 $3,447 $3,356 $3,443 $3,552
$793 $855 $835 $808 $864
$519 $558 $470 $451 $477
$4,829 $4,860 $4,661 $4,702 $4,893
3.25% 3.07% 2.90% 2.91% 2.92%
3Q25 4Q25 1Q26 2Q26 3Q26
$4,133 $4,240 $4,337 $4,380 $4,471
5.79% 5.78% 5.81%
5.91% 5.96%
5.66% 5.63% 5.66%
5.76% 5.82%
3Q25 4Q25 1Q26 2Q26 3Q26
$4,311 $4,301
$4,191 $4,251
$4,416
3.19%
2.97% 2.79% 2.80% 2.78%
3Q25 4Q25 1Q26 2Q26 3Q26
Core Loan Yield2
$813 $819
$626 $605 $645
5.18% 4.93% 4.73% 4.87% 5.08%
3Q25 4Q25 1Q26 2Q26 3Q26
Average Interest-Bearing Deposits Average Noninterest-Bearing Deposits
Average Borrowings Cost of Funds
Average Loans Loan Yield1 Average Investments Investment Yield1
Average Total Deposits Cost of Total Deposits
1 Amounts calculated on a tax-equivalent basis using statutory federal tax rate of 21%
2 Represents a non-GAAP financial measure. See Appendix for non-GAAP reconciliation
Dollars in millions
Loans Continued to Reprice Higher
Deposit Costs Stabilize
High-Yielding Securities Portfolio
Total Funding Costs Stabilize
$12,215 $12,413 $13,492 $13,916 $14,353
$1,266 $1,171
$1,375 $1,360 $1,286
$1,610 $1,614
$1,678 $1,950 $1,806
$1,261 $1,404
$1,196
$3,074 $3,290 $1,267 $1,127
$3,447
$3,401 $2,769 $530 $346
$982
$19,956 $20,238
$22,170 $21,894 $21,341
3Q25 4Q25 1Q26 2Q26 3Q26
8
A Highly Efficient Business Model
1.43% 1.45%
1.64% 1.65% 1.53%
0.04% 0.03%
0.07%
1.47% 1.48%
1.71% 1.65%
1.53%
54.7%
51.6%
56.3%
48.8%
53.2%
50.7%
53.8% 53.0%
48.8%
3Q25 4Q25 1Q26 2Q26 3Q26
Adjusted NIE / Avg. Assets2
Adjusted Efficiency Ratio3
Peer median efficiency ratio of 56%1 in 2Q26 NIE growth of 10% YoY (excluding non-core items)
Salary and Employee Benefits Occupancy
Technology Professional and Consulting
1
Includes publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion as of June 30, 2026 (Source: S&P Capital IQ)
2 Annualized
3 Represents a non-GAAP financial measure. See Appendix for non-GAAP reconciliation
Dollars in thousands
Other
Adjustment Factors / Avg. Assets2
Efficiency Ratio3
Non-Core Items
Efficiency Ratio Below 50% for the First Time Since 1Q23 Well-Managed Expense Base
9
Robust Core Deposit Growth and
Improved Deposit Mix
19% 21% 19% 19% 20%
20%
21% 21% 22% 21%
33%
32% 35% 33%
34%
8% 7% 5% 6%
7%
20% 19% 20% 20%
18%
$4,293 $4,320 $4,306 $4,346 $4,473
3Q25 4Q25 1Q26 2Q26 3Q26
Interest-Bearing Transaction
Noninterest-Bearing Transaction
Time
Savings & Money Market
Brokered
• 3Q26 deposits increased $127M, or 11.6% annualized (4.7% YTD)
• 3Q26 core deposits1
increased $165M, or 19.6% annualized (6.4% YTD)
• Improved deposit mix as noninterest-bearing deposits increased $63M
while brokered deposits declined $96M
• Core deposit growth is not always linear and tends to be seasonally
lower early in the year
Continued Focus on Core Deposit Growth to Support Loan Growth Outlook
1 Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000
Dollars in millions
Positive Core Deposit1 Growth Momentum Over Time
$217
$3,107 $3,170 $3,186
$3,279 $3,351 $3,377 $3,348
$3,513
4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26
Improved Deposit Mix
Core Deposits Acquired Core Deposits1
10
Profitable Loan Growth Trends Continue
$4,215
$4,310
$4,368
$4,426
$4,507
3Q25 4Q25 1Q26 2Q26 3Q26
Gross Loans
1 Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000
Dollars in millions
• 3Q26 loan growth of $80M, or 7.2% annualized (6.1% YTD)
• YTD loan growth 6.1% annualized inline with core deposit1 growth of 6.4%
• Continued to see growth opportunities related to M&A disruption
• Loan-to-deposit ratio of 100.8%, within the 95% to 105% target range
Emphasizing Profitable Loan Growth
Near-term loan growth will depend on a variety of factors, including:
• Core deposit 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
• Competition – increased loan competition and banks being more
aggressive on pricing could impact growth as we focus on profitable
growth
• Loan demand – M&A disruption and strong pipelines continue to
support near-term growth while the interest rate environment creates
demand uncertainty
• Loan payoffs and paydowns – pace of loan payoffs will continue to
impact loan growth
Loan Growth Outlook
Proven Track Record of Generating Strong Organic Loan Growth
11
Stronger Originations and Advances
Support Loan Growth
Strong Originations and Advances
$132
$242
$191 $178 $183
$61
$82
$98
$80
$125
$193
$324
$289
$258
$308
3Q25 4Q25 1Q26 2Q26 3Q26
New Originations Advances
Elevated Loan Payoff Activity
$76
$183 $151
$195 $179 $48
$77
$63
$48 $67
$124
$260
$214
$243 $246
3Q25 4Q25 1Q26 2Q26 3Q26
Payoffs Amortization/Paydowns
Dollars in millions
$4,426
$21
$4,507
$183
$125
$(179)
$(67) $(2)
Gross
Loans
(2Q26)
New
Originations
Advances Net
Revolving
Lines of
Credit
Payoffs Amort. /
Paydowns
Charge-Offs
Gross
Loans
(3Q26)
3Q26 Loan Growth Roll-forward
12
Well-Diversified Loan Portfolio with
Multifamily Expertise
$(29)
$(29)
$-
$-
$4
$37
$43
$54
1 Source: Michel Commercial Real Estate; Twin Cities Multifamily Market Q2-2026 Review
Dollars in millions
CRE NOO
27%
Multifamily
37%
C&D
6%
1-4 Family
Mortgage
10%
CRE OO
4%
C&I
14%
Leases
1%
Consumer
& Other
1%
Loan Mix by Type
$4.5
Billion
• Loan growth driven by continued traction in the affordable housing
vertical across the construction and development and C&I portfolios
• Elevated payoff activity impacted the multifamily portfolio
• Remain comfortable with the diversity of the loan portfolio,
including CRE and multifamily concentrations, given portfolio
performance and expertise
3Q26 Loan Growth by Type (vs. 2Q26)
Multifamily
1-4 Family Mortgage
Construction and Development
C&I
CRE Nonowner Occupied
CRE Owner Occupied
Consumer & Other
Leases
3Q26 Loan Growth Commentary
• Bank of choice in the Twin Cities with expertise and
differentiated service model
• Positive market trends with reduced vacancy rates, strong
absorption, and slower construction = favorable outlook for
occupancy and rent growth
• Twin Cities ranks 4th in the nation for year-over-year multifamily
rent growth1
Multifamily Lending Approach
13
Unique Expertise in Affordable Housing
Dollars in millions
Expertise in the High-Quality Affordable Housing Space
• Leveraging affordable housing expertise to support communities and clients in the Twin Cities and across the country
• Active in the affordable housing space since 2008
• High barrier to entry due to complex nature of the transactions
• Risk mitigants include working with experienced developers of scale across the country and the ongoing demand for affordable housing nationwide
• 38% of the portfolio located outside of Minnesota
• Strong source of core deposit growth
Multifamily
69%
Construction
and
Development
9%
C&I
22%
$734M
$611
$652
$708 $712 $734
3Q25 4Q25 1Q26 2Q26 3Q26
$(26)
$24
$24 Construction and
Development
C&I
Multifamily
Affordable Housing Loan Growth 3Q26 Loan Growth by Type (vs. 2Q26) Portfolio Mix
14
Declining Levels of
Watch/Special Mention and Substandard
Multifamily
80%
CRE OO
10%
C&I
6%
1-4 Family
4%
$24
Million
Watch/Special Mention List Loans Substandard Loans
C&I
24%
CRE NOO
Office
20%
CRE
NOO
Hotels
7%
CRE
NOO
Retail
10%
CRE
NOO
Other
6%
Multifamily
22%
CRE
OO
8%
1-4
Family
3%
$43
Million
Watch/Special Mention Characteristics
Loan Balances Outstanding $23,607
% of Total Loans, Gross 0.5%
Number of Loans 12
Average Loan Size $1,967
% of Bank Risk-Based Capital 3.4%
Substandard Characteristics
Loan Balances Outstanding $42,909
% of Total Loans, Gross 1.0%
Number of Loans 21
Average Loan Size $2,043
% of Bank Risk-Based Capital 6.2%
$40,642
$47,823 $47,681
$38,469
$23,607
3Q25 4Q25 1Q26 2Q26 3Q26
$58,074
$52,956
$43,074 $43,888 $42,909
3Q25 4Q25 1Q26 2Q26 3Q26
Dollars in thousands
15
Asset Quality Remains Strong
1 Includes publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion as of June 30, 2026 (Source: S&P Capital IQ)
2 Nonaccrual loans plus loans 90 days past due and still accruing and foreclosed assets
Dollars in thousands
$275
$1,197
$516 $409
$2,349
0.03%
0.11%
0.05% 0.04%
0.21%
3Q25 4Q25 1Q26 2Q26 3Q26
Net Charge-Offs
3Q26 NCO related to one mixed-use
loan on nonaccrual
Net Charge-offs (recoveries) % of Average Loans (annualized)
$56,390 $56,443 $57,277 $57,418 $57,819
1.34%
1.31% 1.31% 1.30% 1.28%
3Q25 4Q25 1Q26 2Q26 3Q26
Allowance for Credit Losses
Well-reserved compared to peer median
ACL/Loans of 1.15%1
Allowance for Credit Losses % of Gross Loans
$9,991
$22,034
$11,715
$21,648 $20,937
0.19%
0.41%
0.22%
0.40% 0.37%
3Q25 4Q25 1Q26 2Q26 3Q26
Nonperforming Assets2
Two loans make up 80% of the NPAs
NPAs % of Assets
16
Strong Capital Position to Support Growth
Total Risk-Based Capital Ratio Common Equity Tier 1 Capital Ratio
Tier 1 Leverage Ratio
Stable Capital Ratios
Tangible Common Equity Ratio1
1 Represents a non-GAAP financial measure. See Appendix for non-GAAP reconciliation
Recent Capital Actions
• $12.4M remaining under current share repurchase authorization as of
September 30, 2026; no shares repurchased in 3Q26
• No shares sold in 3Q26 as part of the at-the-market (ATM) offering
launched in February 2026
Capital Allocation Priorities
1
3
2
Organic Growth
Share Repurchases
M&A
4 Dividends
Drive profitability by supporting a proven organic loan growth engine
Opportunistically return capital to shareholders by buying back
stock based on valuation, capital levels, and other uses of capital
Review and evaluate M&A opportunities that complement BWB’s
business model
Have not historically paid a common stock dividend given
organic growth opportunities
9.02%
9.20%
9.89% 10.02% 9.94%
9.08%
9.17%
9.53% 9.61% 9.63%
14.12% 14.12%
14.48% 14.48% 14.24%
7.71% 8.01% 8.34% 8.62%
8.16%
3Q25 4Q25 1Q26 2Q26 3Q26
17
Near-Term Expectations
• Mid-single digit loan growth, dependent on the pace of core deposit growth
• Focus on profitable growth while aligning loan growth with core deposit growth over time
• Target loan-to-deposit ratio between 95% and 105%
Balance Sheet
Growth
• Net interest margin stability over the near-term (assumes three additional rate hikes through the first half of 2027)
• Higher loan repricing offsetting higher deposit costs
• Dependent on changes in interest rates and shape of the yield curve
• Continued net interest income growth due to NIM stabilization and loan growth outlook
Net Interest
Margin
• Noninterest expense to return to 2Q26 levels in 4Q26
• Continued investments in people and technology initiatives Expenses
• Maintain stable capital levels in the current environment given the growth outlook
• Opportunistic and nimble approach to capital, focused on enhancing shareholder value and supporting the
balance sheet, whether as a purchaser or issuer
Capital
Levels
18
2026 Strategic Priorities
Optimize Levels
of Profitable Growth
Continue to Gain Loan and
Deposit Market Share
Expand Reach of the
Affordable Housing Vertical
Leverage Technology to
Support Business Growth
• Leverage elevated loan demand and
pipelines to drive organic loan
growth
• Continue to align loan growth with
core deposit growth over time
• Drive NIM expansion in the lower
interest rate environment
• Maintain strong credit quality
through consistent underwriting
standards and active credit
oversight
• Take local deposit and loan market
share by being the bank-of-choice
for clients wanting to bank local in
the Twin Cities
• Expand expertise and capacity
across targeted verticals, such as
affordable housing, women business
leaders, nonprofits, and SBA
• Leverage marketplace disruption in
the Twin Cities to attract new
clients and top talent
• Evaluate M&A opportunities that
support our business model and
growth outlook
• Leverage affordable housing
expertise to grow client base across
the Twin Cities and nationally
• Enhance our national presence as an
affordable housing lender while
building infrastructure for long-term
growth
• Expand and enhance perm product
offering to drive additional loan and
swap fee income
• Continue to earn strong core
deposits through affordable
housing transactions
• Leverage recent technology
investments to support growth and
enhance workflow efficiencies
• Develop AI strategies to enhance
operational efficiencies, strengthen
client relationships, and empower
team members
• Modernize core banking for scalable
growth with open architecture and
easy access to third party services
• Expand investment in digital
products to improve the client
experience
Year-to-Date Progress (3Q26)
• Aligning loan growth (6.1%) with
core deposit1 growth (6.4%)
• NIM expansion of 34 bps
• Hired 17 team members as a result
of the local M&A disruption
• Affordable housing balances up
$82M, or 17% annualized
• Advanced AI from strategy to
execution through enterprise
governance, workforce enablement
and governed automation pilots
1 Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000
19
APPENDIX
20
Loan Portfolio Positioned to Reprice Higher
21% 19% 19%
8% 18% 15%
$105 $94 $94
$38
$88 $72
Less
Than
1 Year
1 to 2
Years
2 to 3
Years
3 to 4
Years
4 to 5
Years
5+
Years
25%
19% 17% 14% 13% 12%
$697
$527 $467 $408 $382 $348
Less
Than
1 Year
1 to 2
Years
2 to 3
Years
3 to 4
Years
4 to 5
Years
5+
Years
Fixed,
63%
Variable,
26%
Adjustable,
11%
Loan Portfolio Mix Fixed-Rate Portfolio
($2.8B)
Variable-Rate Portfolio
($1.2B)
Adjustable-Rate Portfolio
($490M)
Years to Maturity
• $697M of fixed-rate loans
maturing over the next year, with
a weighted average yield of
5.70%
• Larger fixed-rate portfolio
provides support to total loan
yields in a rates-down
environment
Variable-Rate Loan Floors
• Intentional focus on growing the
variable-rate loans to make the
loan portfolio more rate-neutral
• $1.2B of variable-rate loans
offset much of the $1.6B of
immediately adjustable deposits
tied to short-term rates
• 68% of variable-rate portfolio
have rate floors, with 83% of the
floors at or above 5%
• 97% of variable-rate loans are
currently tied to SOFR or Prime
Adjustable-Rate
Repricing/Maturity Schedule
• $105M of adjustable-rate loans
repricing or maturing over the
next year, with a weighted
average yield of 4.23%
• Adjustable-rate loans positioned
to continue repricing higher
Dollars in millions
Data as of September 30, 2026
WA
Yield 5.70% 5.57% 5.55% 6.16% 5.56% 4.52%
WA
Yield 4.23% 4.44% 5.68% 6.56% 6.63% 4.65%
5% 12%
36% 43%
4%
$44
$98
$295
$346
$30
Below
4%
4%-5% 5%-6% 6%-7% Above
7%
Increasing Variable-Rate Mix
Fixed Variable Adjustable
67% 65% 65% 64% 63%
19% 22% 23% 25% 26%
14% 13% 12% 11% 11%
3Q25 4Q25 1Q26 2Q26 3Q26
Interest Rate Sensitivity
Estimated Change in NII From
Immediate Interest Rate Shocks
+100 bps
-100 bps
Loan Portfolio Considerations
• Loan portfolio most sensitive to changes in the 3- to 5-year portion of the
yield curve
• Increased mix of variable-rate loans to support loan yield repricing in a
rates-up environment
• $802M of fixed- and adjustable-rate loans scheduled to reprice over the
next year
• Leveraged prepayment penalties on new loan originations to help
maintain benefit of higher rates over time
Funding Considerations
• Deposit base is more sensitive to changing interest rates
• Strong momentum in core deposit growth since March 2023
• Continue to supplement core deposits with wholesale funding to support
loan growth over time
• $2.0B of funding tied to short-term rates, including $1.6B of immediately-adjustable deposits and $0.4B of derivative hedging
• $592M of other repricing opportunities, including time deposit maturities
over the next 12 months and callable brokered deposits with rates over
4.00%
-200 bps
(1.1)%
+4.3%
2Q26
+13.3%
(1.0)%
+2.4%
3Q26
+8.1%
(2.7)%
+4.4%
3Q25
+10.5%
(1.1)%
+4.6%
1Q26
+12.2%
(1.4)%
+3.7%
4Q25
+9.4%
+200 bps (4.9)% (2.8)% (2.2)% (2.4)% (2.5)%
21
More neutral balance sheet with rate-sensitive portions of the loan and deposit portfolios better aligned –
$1.2B of variable-rate loans and $1.6B of deposits tied to short-term rates
22
Managing Multifamily and Office-Related Risk
1 Excludes NOO medical office of $45 million
Data as of September 30, 2026
Strong Multifamily Track Record Well-Managed CRE NOO Office Portfolio1 With Limited CBD Exposure
Percent of Total
Loans Average Loan Size
4.9% $2.2M
CRE NOO Office by Geography
Twin Cities
Suburban
68%
Minneapolis-St. Paul (CBD)
13%
Minneapolis
-St. Paul
(non-CBD)
17%
Out-of-State
(non-CBD)
1%
Greater MN
1%
$220M
• Majority of CRE NOO office
exposure in the Twin Cities
suburbs
• Only 4 loans totaling $28M
located in Minnesota CBDs
• Only 4 loans totaling $2M
outside of Minnesota (non-CBD), consisting of projects
for existing local clients
Loan
Balances
Average
Loan Size
NCOs
(since 2005)
$1.7B $2.9M $3M
Multifamily Lending Focus in Stable Twin Cities Market
• 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 growth,
low unemployment, strong wages, and shortage of single-family housing
Weighted
Average LTV
67%
Weighted Average
LTV
68%
23
High Quality Securities Portfolio
See Quarterly Peer
Bank Financial
Review
AAA
35%
AA
41%
A
5%
BBB
6%
NR
13%
Rating Mix
Derivatives Portfolio Offsetting AOCI Impact (dollars in thousands)
$(25,175)
$(61,070)
$14,278
$27,431
$(5,563)
$(22,863)
3Q25 3Q26
MTM Securities MTM Derivatives Net Impact on AOCI1
• No held-to-maturity securities
• Securities portfolio average duration of 7.4 years
• Average securities portfolio yield of 5.08%
1 Includes the tax-effected impact of $2,244 in 3Q25 and $9,220 in 3Q26
31% 31% 40% 37% 35%
29% 31% 35% 42% 46%
13% 12%
17%
15% 14%
18% 19%
9%
7%
8%
6% 5%
$826 $776
$567 $605 $599
3Q25 4Q25 1Q26 2Q26 3Q26
Mortgage-Backed Securities Municipal Bonds
U.S. Treasuries
Corporate Securities
Securities Available for Sale Portfolio (dollars in millions)
Other
24
Ample Liquidity and Borrowing Capacity
12.5% 11.5% 12.4% 12.1% 12.8%
32.1% 35.0% 36.1%
38.7% 34.5%
$2,393
$2,510 $2,586
$2,737
$2,656
3Q25 4Q25 1Q26 2Q26 3Q26
1 Excludes $93M of pledged securities at September 30, 2026
Dollars in millions
Off-Balance Sheet Liquidity as a % of Assets
On-Balance Sheet Liquidity as a % of Assets
Liquidity Position with 1.9x Coverage of Uninsured Deposits Significantly Enhanced Liquidity Position Since 2022
Funding Source 12/31/2022 9/30/2026 Change
Cash and Cash Equivalents $ 4 8 $ 216 $ 168
Unpledged Securities1
549 503 (46)
FHLB Capacity 391 638 247
FRB Discount Window 158 1,032 874
Unsecured Lines of Credit 208 220 12
Secured Line of Credit 26 4 7 21
Total $ 1,380 $ 2,656 $ 1,276
Available Balance
25
Reconciliation of Non-GAAP Financial Measures
Dollars in thousands
September 30,
2025
December 31,
2025
March 31,
2026
June 30,
2026
September 30,
2026
Core Loan Yield
Loan Interest Income (Tax-Equivalent Basis) $ 60,317 $ 61,746 $ 62,102 $ 64,537 $ 67,130
Less:
Loan Fees (966) (1,041) (1,257) (1,464) (1,367)
Loan Accretion (380) (546) (324) (171) (171)
Core Loan Interest Income $ 58,971 $ 60,159 $ 60,521 $ 62,902 $ 65,592
Average Loans $ 4,132,987 $ 4,239,936 $ 4,336,869 $ 4,380,477 $ 4,471,437
Core Loan Yield 5.66% 5.63% 5.66% 5.76% 5.82%
Efficiency Ratio:
Noninterest Expense $ 19,956 $ 20,238 $ 22,170 $ 21,894 $ 21,341
Less: Amortization Intangible Assets (230) (231) (226) (227) (226)
Adjusted Noninterest Expense $ 19,726 $ 20,007 $ 21,944 $ 21,667 $ 21,115
Net Interest Income $ 34,091 $ 35,687 $ 36,647 $ 38,566 $ 40,658
Noninterest Income 2,061 3,148 9,564 2,324 2,573
Less: (Gain) Loss on Sales of Securities (59) (80) (7,251) - -
Adjusted Operating Revenue $ 36,093 $ 38,755 $ 38,960 $ 40,890 $ 43,231
Efficiency Ratio 54.7% 51.6% 56.3% 53.0% 48.8%
Adjusted Efficiency Ratio:
Noninterest Expense $ 19,956 $ 20,238 $ 22,170 $ 21,894 $ 21,341
Less: Amortization Intangible Assets (230) (231) (226) (227) (226)
Less: Merger-related Expenses (530) (346) - - -
Less: FHLB Advance Prepayment/Debt Redemption Loss - - (982) - -
Adjusted Noninterest Expense $ 19,196 $ 19,661 $ 20,962 $ 21,667 $ 21,115
Net Interest Income $ 34,091 $ 35,687 $ 36,647 $ 38,566 $ 40,658
Noninterest Income 2,061 3,148 9,564 2,324 2,573
Less: (Gain) Loss on Sales of Securities (59) (80) (7,251) - -
Less: FHLB Advance Prepayment Income - - - - -
Adjusted Operating Revenue $ 36,093 $ 38,755 $ 38,960 $ 40,890 $ 43,231
Adjusted Efficiency Ratio 53.2% 50.7% 53.8% 53.0% 48.8%
Adjusted Noninterest Expense to Average Assets:
Noninterest Expense $ 19,956 $ 20,238 $ 22,170 $ 21,894 $ 21,341
Less: Merger-related Expenses (530) (346) - - -
Less: FHLB Prepayment Penalty - - (982) - -
Adjusted Noninterest Expense $ 19,426 $ 19,892 $ 21,188 $ 21,894 $ 21,341
Average Assets $ 5,372,443 $ 5,438,555 $ 5,242,761 $ 5,317,215 $ 5,521,489
Adjusted Noninterest Expense to Average Assets (ann.) 1.43% 1.45% 1.64% 1.65% 1.53%
As of and for the quarter ended,
September 30,
2025
December 31,
2025
March 31,
2026
June 30,
2026
September 30,
2026
Pre-Provision Net Revenue:
Noninterest Income $ 2,061 $ 3,148 $ 9,564 $ 2,324 $ 2,573
Less: (Gain) Loss on Sales of Securities (59) (80) (7,251) - -
Less: FHLB Advance Prepayment Income - - - - -
Total Operating Noninterest Income 2,002 3,068 2,313 2,324 2,573
Plus: Net Interest Income 34,091 35,687 36,647 38,566 40,658
Net Operating Revenue $ 36,093 $ 38,755 $ 38,960 $ 40,890 $ 43,231
Noninterest Expense $ 19,956 $ 20,238 $ 22,170 $ 21,894 $ 21,341
Total Operating Noninterest Expense $ 19,956 $ 20,238 $ 22,170 $ 21,894 $ 21,341
Pre-provision Net Revenue $ 16,137 $ 18,517 $ 16,790 $ 18,996 $ 21,890
Plus: Non-Operating Revenue Adjustments 59 8 0 7,251 - -
Less: Provision for Credit Losses 1,100 1,450 1,200 550 2,750
Less: Provision for Income Taxes 3,495 3,813 5,435 4,439 4,112
Net Income $ 11,601 $ 13,334 $ 17,406 $ 14,007 $ 15,028
Average Assets $ 5,372,443 $ 5,438,555 $ 5,242,761 $ 5,317,215 $ 5,521,489
Pre-Provision Net Revenue Return on
Average Assets 1.19% 1.35% 1.30% 1.43% 1.57%
Adjusted Pre-Provision Net Revenue:
Net Operating Revenue $ 36,093 $ 38,755 $ 38,960 $ 40,890 $ 43,231
Noninterest Expense $ 19,956 $ 20,238 $ 22,170 $ 21,894 $ 21,341
Less: Merger-related Expenses (530) (346) - - -
Less: FHLB Prepayment Income - - (982) - -
Adjusted Total Operating Noninterest Expense $ 19,426 $ 19,892 $ 21,188 $ 21,894 $ 21,341
Adjusted Pre-Provision Net Revenue $ 16,667 $ 18,863 $ 17,772 $ 18,996 $ 21,890
Adjusted Pre-Provision Net Revenue Return on
Average Assets 1.23% 1.38% 1.37% 1.43% 1.57%
Core Net Interest Margin
Net Interest Income (Tax-equivalent Basis) $ 34,614 $ 36,447 $ 37,395 $ 39,400 $ 41,732
Less:
Loan Fees (966) (1,041) (1,257) (1,464) (1,367)
Purchase Accounting Accretion:
Loan Accretion (380) (546) (324) (171) (171)
Bond Accretion (89) (33) (22) (17) (18)
Bank-Owned Certificates of Deposit Accretion (6) (16) - - -
Deposit Certificates of Deposit Accretion (13) - - - -
Total Purchase Accounting Accretion (488) (595) (346) (188) (189)
Core Net Interest Income (Tax-equivalent Basis) $ 33,160 $ 34,811 $ 35,792 $ 37,748 $ 40,176
Average Interest Earning Assets $ 5,223,139 $ 5,264,700 $ 5,079,430 $ 5,144,715 $ 5,350,540
Core Net Interest Margin 2.52% 2.62% 2.86% 2.94% 2.98%
As of and for the quarter ended,
26
Reconciliation of Non-GAAP Financial Measures
Dollars in thousands
September 30,
2025
December 31,
2025
March 31,
2026
June 30,
2026
September 30,
2026
Tangible Common Equity / Tangible Assets
Total Shareholders' Equity $ 497,463 $ 517,095 $ 528,424 $ 547,909 $ 541,392
Less: Preferred Stock (66,514) (66,514) (66,514) (66,514) (66,514)
Total Common Shareholders' Equity 430,949 450,581 461,910 481,395 474,878
Less: Intangible Assets (19,142) (18,912) (18,685) (18,459) (18,233)
Tangible Common Equity $ 411,807 $ 431,669 $ 443,225 $ 462,936 $ 456,645
Total Assets $ 5,359,994 $ 5,407,002 $ 5,335,396 $ 5,389,726 $ 5,615,482
Less: Intangible Assets (19,142) (18,912) (18,685) (18,459) (18,233)
Tangible Assets $ 5,340,852 $ 5,388,090 $ 5,316,711 $ 5,371,267 $ 5,597,249
Tangible Common Equity / Tangible Assets 7.71% 8.01% 8.34% 8.62% 8.16%
Return on Average Tangible Common Equity
Net Income Available to Common Shareholders $ 10,588 $ 12,320 $ 16,393 $ 12,993 $ 14,015
Average Shareholders' Equity $ 485,869 $ 509,655 $ 524,825 $ 552,575 $ 551,792
Less: Average Preferred Stock (66,514) (66,514) (66,514) (66,514) (66,514)
Average Common Equity 419,355 443,141 458,311 486,061 485,278
Less: Effects of Average Intangible Assets (19,274) (19,042) (18,816) (18,588) (18,361)
Average Tangible Common Equity $ 400,081 $ 424,099 $ 439,495 $ 467,473 $ 466,917
Return on Average Tangible Common Equity 10.50% 11.53% 15.13% 11.15% 11.91%
As of and for the quarter ended,
September 30,
2025
December 31,
2025
March 31,
2026
June 30,
2026
September 30,
2026
Adjusted Diluted Earnings Per Common Share
Net Income Available to Common Shareholders $ 10,588 $ 12,320 $ 16,393 $ 12,993 $ 14,015
Add: Merger-related Expenses 530 346 - - -
Add: FHLB Prepayment Penalties - - 982 - -
Less: FHLB Advance Prepayment Income - - - - -
Less: (Gain) Loss on Sales of Securities (59) (80) (7,251) - -
Total Adjustments 471 266 (6,269) - -
Less: Tax Impact of Adjustments (110) (59) 1,492 - -
Adjusted Net Income Available to Common $ 10,949 $ 12,527 $ 11,616 $ 12,993 $ 14,015
Diluted Weighted Average Shares Outstanding 28,190,406 28,354,756 28,490,176 28,589,332 28,796,376
Adjusted Diluted Earnings Per Common Share $ 0.39 $ 0.44 $ 0.41 $ 0.45 $ 0.49
Adjusted Return on Average Assets
Net Income $ 11,601 $ 13,334 $ 17,406 $ 14,007 $ 15,028
Add: Total Adjustments 471 266 (6,269) - -
Less: Tax Impact of Adjustments (110) (59) 1,492 - -
Adjusted Net Income $ 11,962 $ 13,541 $ 12,629 $ 14,007 $ 15,028
Average Assets $ 5,372,443 $ 5,438,555 $ 5,242,761 $ 5,317,215 $ 5,521,489
Adjusted Return on Average Assets 0.88% 0.99% 0.98% 1.06% 1.08%
Adjusted Return on Average Tangible Common Equity
Adjusted Net Income Available to Common Shareholders $ 10,949 $ 12,527 $ 11,616 $ 12,993 $ 14,015
Average Tangible Common Equity $ 400,081 $ 424,099 $ 439,495 $ 467,473 $ 466,917
Adjusted Return on Average Tangible Common Equity 10.86% 11.72% 10.72% 11.15% 11.91%
As of and for the quarter ended,
27
Reconciliation of Non-GAAP Financial Measures
Tangible Book Value Per Share
December 31,
2016
March 31,
2017
June 30,
2017
September 30,
2017
December 31,
2017
March 31,
2018
June 30,
2018
September 30,
2018
December 31,
2018
March 31,
2019
Book Value Per Common Share $ 4.69 $ 4.91 $ 5.23 $ 5.43 $ 5.56 $ 6.62 $ 6.85 $ 7.01 $ 7.34 $ 7.70
Less: Effects of Intangible Assets (0.16) (0.16) (0.16) (0.16) (0.16) (0.13) (0.12) (0.12) (0.12) (0.12)
Tangible Book Value Per Common Share $ 4.53 $ 4.75 $ 5.07 $ 5.27 $ 5.40 $ 6.49 $ 6.73 $ 6.89 $ 7.22 $ 7.58
Total Common Shares 24,589,861 24,589,861 24,589,861 24,629,861 24,679,861 30,059,374 30,059,374 30,059,374 30,097,274 30,097,674
Tangible Book Value Per Share
June 30,
2019
September 30,
2019
December 31,
2019
March 31,
2020
June 30,
2020
September 30,
2020
December 31,
2020
March 31,
2021
June 30,
2021
September 30,
2021
Book Value Per Common Share $ 7.90 $ 8.20 $ 8.45 $ 8.61 $ 8.92 $ 9.25 $ 9.43 $ 9.92 $ 10.33 $ 10.73
Less: Effects of Intangible Assets (0.12) (0.12) (0.12) (0.12) (0.12) (0.12) (0.12) (0.12) (0.12) (0.11)
Tangible Book Value Per Common Share $ 7.78 $ 8.08 $ 8.33 $ 8.49 $ 8.80 $ 9.13 $ 9.31 $ 9.80 $ 10.21 $ 10.62
Total Common Shares 28,986,729 28,781,162 28,973,572 28,807,375 28,837,560 28,710,775 28,143,493 28,132,929 28,162,777 28,066,822
Tangible Book Value Per Share
December 31,
2021
March 31,
2022
June 30,
2022
September 30,
2022
December 31,
2022
March 31,
2023
June 30,
2023
September 30,
2023
December 31,
2023
March 31,
2024
Book Value Per Common Share $ 11.09 $ 11.12 $ 11.14 $ 11.44 $ 11.80 $ 12.05 $ 12.25 $ 12.47 $ 12.94 $ 13.30
Less: Effects of Intangible Assets (0.11) (0.11) (0.11) (0.11) (0.11) (0.10) (0.10) (0.10) (0.10) (0.10)
Tangible Book Value Per Common Share $ 10.98 $ 11.01 $ 11.03 $ 11.33 $ 11.69 $ 11.95 $ 12.15 $ 12.37 $ 12.84 $ 13.20
Total Common Shares 28,206,566 28,150,389 27,677,372 27,587,978 27,751,950 27,845,244 27,973,995 28,015,505 27,748,965 27,589,827
Tangible Book Value Per Share
June 30,
2024
September 30,
2024
December 31,
2024
March 31,
2025
June 30,
2025
September 30,
2025
December 31,
2025
March 31,
2026
June 30,
2026
September 30,
2026
Book Value Per Common Share $ 13.63 $ 14.06 $ 14.21 $ 14.60 $ 14.92 $ 15.62 $ 16.23 $ 16.60 $ 17.27 $ 16.98
Less: Effects of Intangible Assets (0.10) (0.10) (0.72) (0.71) (0.71) (0.69) (0.68) (0.67) (0.66) (0.65)
Tangible Book Value Per Common Share $ 13.53 $ 13.96 $ 13.49 $ 13.89 $ 14.21 $ 14.93 $ 15.55 $ 15.93 $ 16.61 $ 16.33
Total Common Shares Outstanding 27,348,049 27,425,690 27,552,449 27,560,150 27,470,283 27,584,732 27,759,970 27,832,867 27,880,830 27,960,252
As of and for the quarter ended,
As of and for the quarter ended,
As of and for the quarter ended,
As of and for the quarter ended,
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Document and Entity Information
Oct. 20, 2026
Document Information [Line Items]
Document Type
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Document Period End Date
Oct. 20, 2026
Entity File Number
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Entity Registrant Name
BRIDGEWATER BANCSHARES, INC.
Entity Incorporation, State or Country Code
MN
Entity Tax Identification Number
26-0113412
Entity Address, Address Line One
4450 Excelsior Boulevard, Suite 100
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Security Exchange Name
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