Bridgewater Bancshares (BWB) investor relations material

Executive summary

• Net income for Q1 2026 was $17.4 million, up from $13.3 million in Q4 2025 and $9.6 million in Q1 2025; diluted EPS was $0.58 ($0.41 adjusted), reflecting strong profitability and efficiency improvements.

• Net interest margin expanded to 2.99%, up 24 bps from Q4 2025 and 48 bps year-over-year, nearly reaching the 3% year-end target ahead of schedule.

• Loan balances increased $58.5 million (5.5% annualized) from Q4 2025, with affordable housing and C&I lending leading growth.

• Opened a new branch in Lake Elmo, MN, expanding the geographic footprint and targeting underserved markets.

• Tangible book value per share rose to $15.93, up 9.9% annualized from Q4 2025.

Financial highlights

• Net interest income was $36.6 million, up $960,000 from Q4 2025 and $6.4 million year-over-year, despite a $185 million decline in average interest-earning assets.

• Noninterest income rose to $9.6 million, driven by a $7.3 million gain on securities sales.

• Noninterest expense increased to $22.2 million, reflecting higher salaries, a $982,000 FHLB prepayment penalty, and marketing costs.

• Efficiency ratio was 56.3% (53.8% adjusted), consistently outperforming peer median.

• Return on average assets was 1.35%; return on average tangible common equity was 15.13%.

Outlook and guidance

• Management expects slow, continued NIM expansion and high single-digit loan growth for 2026, aligned with core deposit growth and maintaining a loan-to-deposit ratio between 95% and 105%.

• Expense growth is expected to align with asset growth, with ongoing investments in people and technology.

• Capital levels are expected to remain stable, with flexibility for share repurchases or ATM equity offerings based on market conditions.

• Focus remains on real estate lending and maintaining strong capital and liquidity positions.