Bridgewater Bancshares (BWB) investor relations material

Executive summary

• Achieved net income of $14.0 million ($0.45 per diluted share) for Q2 2026, with ROA of 1.06% and strong profitability driven by net interest margin expansion and disciplined credit underwriting.

• Net interest margin reached 3.07%, exceeding the 3% year-end target, with net interest income up 21% annualized in Q2.

• Tangible book value per share increased to $16.61, up 17.1% annualized from Q1 2026, and has grown over 50% in 4.5 years.

• Added 15 key hires from acquired competitor banks, supporting future scaling and client service.

• Management continues to invest in talent and relationship-based growth to support future opportunities.

Financial highlights

• Net interest income grew at a 21% annualized pace in Q2, rising to $38.6 million, driven by margin expansion and earning asset growth.

• Loan balances grew $58 million (5.4% annualized) and deposit balances rose $41 million (3.8% annualized) from Q1 2026.

• Efficiency ratio improved to 53.0% from 56.3% in Q1 2026, outperforming peer median.

• CET1 ratio increased to 9.61%, up 58 basis points year-over-year.

• Repurchased $700,000 of common stock at an average price of $18.12 per share.

Outlook and guidance

• Expect mid to high single-digit loan growth in the second half of 2026, dependent on deposit growth and competition.

• Net interest margin expansion anticipated to continue but at a slower pace.

• Expenses projected to remain relatively flat in Q3 and Q4 after being front-loaded in the first half due to hiring.

• Management remains focused on disciplined growth, talent acquisition, and long-term shareholder value.