Bridgewater Bancshares (BWB) investor relations material

Executive summary

• Net income for Q2 2026 was $14.0 million ($0.45 per diluted share), up from $11.5 million in Q2 2025, with return on average assets of 1.06% and strong profitability driven by loan growth and net interest margin expansion to 3.07%.

• 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.

• Management continues to invest in talent, adding 15 key hires from acquired competitors, and focuses on relationship-based growth.

• Asset quality remains robust, with nonperforming assets at 0.40% of total assets and annualized net charge-offs at 0.04%.

Financial highlights

• Net interest income for Q2 2026 was $38.6 million, up $6.1 million year-over-year and 21% annualized from Q1 2026, driven by margin expansion and earning asset growth.

• Net interest margin reached 3.07%, exceeding the 3% year-end target and up 8 bps from Q1 2026.

• 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 peers.

• Allowance for credit losses on loans was $57.4 million (1.30% of loans) at June 30, 2026.

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.