Bridgewater Bancshares (BWB) Q4 2025 earnings summary

Executive summary

• Achieved robust loan and core deposit growth, NIM expansion, and higher fee income in Q4 2025, with well-controlled expenses and strong asset quality.

• Net income for Q4 2025 was $13.3 million ($0.43 per diluted share), up from $11.6 million in Q3 2025 and $8.2 million in Q4 2024; adjusted net income was $13.5 million ($0.44 per diluted share).

• Continued to gain market share in the Twin Cities, leveraging M&A disruption and expanding in the affordable housing market.

• Completed a core conversion, launched a new online banking platform, and advanced technology initiatives.

• Focused on shareholder value through organic growth, technology investments, and targeted M&A.

Financial highlights

• Net interest margin expanded 12 bps to 2.75% in Q4 2025, with a path to 3% NIM by end of 2026.

• Net interest income for Q4 2025 was $35.7 million, up $1.6 million from Q3 2025 and $8.7 million from Q4 2024.

• Total revenue up 32% year-over-year; noninterest income increased to $3.1 million, up $1.1 million sequentially and $615,000 year-over-year.

• Core deposits grew 9% in Q4 and 8% for the year; loans grew 9% in Q4 and 11.4% for the year.

• Tangible book value per share was $15.55 at year-end, up 16.5% annualized in Q4 and 15.3% year-over-year.

Outlook and guidance

• Targeting high single-digit loan growth in 2026, aligned with core deposit growth and loan payoffs.

• NIM target of 3% by end of 2026, not assuming further rate cuts.

• Expense growth expected to align with asset growth in high single digits for 2026; continued investment in technology and people.

• Provisioning to remain dependent on loan growth and asset quality.

• Ongoing evaluation of share repurchases based on capital levels and valuation.