Bridgewater Bancshares (BWB) Q3 2026 earnings summary

Executive summary

• Q3 net income was $15.0M, or $0.49 per diluted share, versus $11.6M and $0.38 YoY.

• Revenue rose 20% YoY to $43.2M; pre-provision net revenue increased 36% to a record $21.9M, and the efficiency ratio improved to 48.8%.

• Loan and core-deposit growth supported margin expansion and reduced brokered-deposit reliance; watch and special mention balances declined QoQ.

Financial highlights

• Net interest income was $40.7M, up $2.1M QoQ and 22% annualized QoQ; total revenue rose $2.3M QoQ.

• Noninterest expense was $21.3M, down $553,000 QoQ; the efficiency ratio improved to 48.8% from 53.0%.

• Noninterest income was $2.6M, with higher letter-of-credit fees and lighter swap fees amid less favorable pricing.

• Provision for credit losses was $2.8M, versus $550,000 in Q2, reflecting loan growth and an additional specific reserve.

• Nine-month net income was $46.4M and diluted EPS was $1.52; adjusted diluted EPS was $1.35, excluding items including a securities-sale gain and FHLB prepayment penalty.

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.

• Net interest income growth expected to continue with NIM stabilization and loan growth; Q4 noninterest expense expected near Q2 levels.

• Q4 originations may slow as higher rates reduce deal feasibility; slower payoffs may partly offset the impact.

• Outlook remains sensitive to rates, yield-curve shape, deposit growth, competition, loan demand and payoff activity.