Bridgewater Bancshares (BWB) investor relations material

Executive summary

• Q3 net income was $15.0M, or $0.49 per diluted share, versus $11.6M and $0.38 YoY; pre-provision net revenue reached a record $21.9M, up 36% YoY.

• Loan and core-deposit growth, higher loan yields and lower deposit costs lifted NIM to 3.09%; the efficiency ratio improved to 48.8%.

• Loan growth and core-deposit growth remained aligned year to date; watch and special-mention balances declined QoQ.

Financial highlights

• Revenue was $43.2M, up 20% YoY; net interest income was $40.7M, up $6.6M YoY and $2.1M QoQ.

• NIM rose 2 bps QoQ and 46 bps YoY; average earning assets increased $206M, or 16% annualized, and loan yield rose 5 bps QoQ to 5.96%.

• Noninterest income was $2.6M; noninterest expense was $21.3M, down $553,000 QoQ but up $1.4M YoY.

• Provision for credit losses was $2.75M, versus $550,000 in Q2 and $900,000 YoY; Q3 included loan growth and an additional specific reserve.

• 9M net income was $46.4M; 9M noninterest income included a $7.3M securities gain.

Outlook and guidance

• Near-term loan growth expected in the mid-single digits, dependent on core-deposit growth; target loan-to-deposit ratio remains 95%–105%.

• NIM expected to remain stable near current levels, assuming three additional rate hikes through H1 2027; loan repricing is expected to offset higher deposit costs.

• Q4 noninterest expense expected near Q2 2026 levels; provision expense expected to rise from Q3 due to loan growth and resolution work on two larger NPAs.

• Higher rates may slow originations while moderating payoffs; loan demand, pricing, deposit growth and the yield curve remain key variables.

• Continued profitable growth is the stated focus, supported by organic lending and core-deposit generation; real estate lending remains the portfolio emphasis.