Bridgewater Bancshares (BWB) investor relations material

Executive summary

• Achieved strong revenue, profitability, and net interest margin growth in Q4 and full-year 2025, driven by robust loan and core deposit growth, improved efficiency, and well-controlled expenses.

• Asset quality remained strong, with low nonperforming assets and well-managed credit risk, despite a modest uptick due to isolated events.

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

• Focused on organic growth, technology investments, and disciplined risk management, while evaluating further M&A opportunities.

• Closed one acquired branch with minimal deposit attrition and set to open a new branch in Lake Elmo.

Financial highlights

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

• Net interest income increased 5% during the quarter; total revenue up 32% year-over-year.

• Core deposits grew 8.8% annualized in Q4 and 7.9% for the year; loans grew 8.9% annualized 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.

• Adjusted ROA just under 1% in Q4; efficiency ratio improved to 50.7%, lowest since Q1 2023.

Outlook and guidance

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

• Net interest margin target of 3% by end of 2026, assuming no further rate cuts.

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

• Swap fee income expected to remain part of revenue but likely to slow in 2026.

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