Bridgewater Bancshares (BWB) investor relations material

Company overview and market position

• Focuses on entrepreneurial banking, commercial lending, and multifamily/affordable housing in the Twin Cities, with $5.3B in assets and nine branches.

• Growth driven by both organic expansion and two small acquisitions, with 20% compounded asset growth over the last decade.

• Second largest locally led institution in the Twin Cities, benefiting from market disruption and consolidation.

• Maintains a unique, high-performance culture and efficient, branch-light business model.

• Leadership team recently refreshed with three new members as two founding leaders retire.

Growth strategy and business model

• Core deposit growth is a key focus, supplemented by wholesale funding; core deposits have grown at 11% over five years.

• Loan growth is methodical, with a focus on high-quality, diversified portfolios, especially multifamily lending, now nearly 40% of the portfolio.

• Affordable housing lending is expanding nationally, with 15% growth in the last year and very low loss history.

• Revenue diversification efforts include growing fee income, especially from swap fees and investment advisory services.

• No current dividend; capital is retained for growth and occasional share repurchases.

Financial performance and efficiency

• Net interest margin is expanding as loans reprice at higher rates, with $600M set to reprice in the next 12 months.

• Efficiency ratio target is 45–50, with potential to reach low 40s as technology investments pay off.

• Overhead is well controlled, and total cost basis is lower than peers due to a smaller branch network.

• Core deposit costs are in the mid-2% range, total deposit costs in the low 3% range due to wholesale funding.

• Recent acquisition added a granular deposit base with minimal multifamily or CRE exposure.