Bridgewater Bancshares (BWB) 16th Annual Midwest Ideas Conference summary

Company overview and market position

• Focuses on entrepreneurial banking in the Twin Cities, with $5.3 billion in assets and nine branches, combining organic growth and small acquisitions.

• Strategic leadership team recently refreshed with three new members, emphasizing culture, growth, efficiency, and risk management.

• Consistent tangible book value growth, outperforming peers in risk management and non-performing loans.

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

• Highly efficient, branch-light business model drives profitability and efficiency.

Growth strategy and asset mix

• Achieved 20% compounded asset growth over the last decade, mainly organic, with two small acquisitions.

• Core deposits have grown at 11% annually over five years, supported by strong client relationships and technology.

• Loan growth remains disciplined, focusing on high-quality clients and profitable opportunities despite a challenging rate environment.

• Multifamily lending has grown from 21% to nearly 40% of the portfolio, with strong performance and minimal charge-offs.

• Affordable housing lending is expanding nationally, growing at 15% annually, with very low loss history.

Financial performance and efficiency

• Revenue growth was stagnant during the inverted yield curve but is rebounding as the Fed cuts rates, with record non-interest income in Q2 2025.

• Net interest margin is expanding as older loans reprice at higher rates, supporting earnings growth.

• Overhead and cost of funds are well managed, with a target efficiency ratio of 45%-50% and potential to reach low 40%s.

• Strong credit culture, with low charge-offs and non-performing assets, supported by regulatory expertise.

• Healthy allowance for loan losses and capital levels, with organic growth as the primary use of capital.