Bridgewater Bancshares, Inc. Announces Fourth Quarter 2025 Financial Results

Fourth Quarter 2025 Highlights

Net income of $13.3 million, or $0.43 per diluted common share; adjusted net income of $13.5 million, or $0.44 per diluted common share.⁽¹⁾
Net interest income increased $1.6 million, or 4.7%, from the third quarter of 2025.
Net interest margin (on a fully tax-equivalent basis) of 2.75%, an increase of 12 basis points from the third quarter of 2025.
Noninterest income increased $1.1 million, or 52.7%, from the third quarter of 2025.
Total deposits increased by $27.6 million, or 2.6% annualized, from the third quarter of 2025; core deposits⁽²⁾ increased by $72.6 million, or 8.8% annualized, from the third quarter of 2025.
Gross loans increased by $95.0 million, or 8.9% annualized, from the third quarter of 2025.
Efficiency ratio⁽¹⁾ of 51.6%, down from 54.7% for the third quarter of 2025; adjusted efficiency ratio⁽¹⁾ of 50.7%, down from 53.2% for the third quarter of 2025.
Completed the closure of one branch acquired from First Minnetonka City Bank (“FMCB”) in 2024.

Full Year 2025 Highlights

Net income of $46.1 million, or $1.49 per diluted common share; adjusted net income of $46.9 million, or $1.52 per diluted common share.⁽¹⁾
Pre-provision net revenue⁽¹⁾ increased $19.3 million, or 42.1%, from 2024.
Tangible book value per share⁽¹⁾ of $15.55 at December 31, 2025, an increase of $2.06, or 15.3%, from December 31, 2024.
Total deposits increased by $233.6 million, or 5.7%, in 2025; core deposits⁽²⁾ increased by $244.6 million, or 7.9%, in 2025.
Gross loans increased by $441.0 million, or 11.4%, in 2025.
Net loan charge-offs as a percentage of average loans of 0.04%, up from 0.03% for the year ended December 31, 2024

ST. LOUIS PARK, Minn.--(BUSINESS WIRE)--Bridgewater Bancshares, Inc. (Nasdaq: BWB) (“the Company”), the parent company of Bridgewater Bank (“the Bank”), today announced net income of $13.3 million for the fourth quarter of 2025, compared to $11.6 million for the third quarter of 2025, and $8.2 million for the fourth quarter of 2024. Earnings per diluted common share were $0.43 for the fourth quarter of 2025, compared to $0.38 for the third quarter of 2025, and $0.26 for the fourth quarter of 2024. Adjusted net income, a non-GAAP financial measure, was $13.5 million for the fourth quarter of 2025, compared to $12.0 million for the third quarter of 2025, and $8.6 million for the fourth quarter of 2024. Adjusted earnings per diluted common share, a non-GAAP financial measure, were $0.44 for the fourth quarter of 2025, compared to $0.39 for the third quarter of 2025, and $0.27 for the fourth quarter of 2024.

“Bridgewater’s fourth quarter was highlighted by strong revenue growth, well controlled expenses, and continued core deposit and loan growth momentum,” said Chairman and Chief Executive Officer, Jerry Baack. “Our overall efficiency improved as meaningful net interest margin expansion and strong swap fee income drove revenue higher while expense growth returned to more normalized levels following the systems conversion of our recent acquisition. Meanwhile, we continued to capitalize on the M&A disruption in the Twin Cities through opportunities to attract top talent and earn new client relationships.

“As we look ahead to 2026, we are focused on driving profitable growth, gaining market share, and continuing to leverage technology investments to support future growth. We will also look to expand key verticals including affordable housing, which became a key growth driver for us in 2025. With the right team in place, an outlook for continued growth and net interest margin expansion, and a strong credit culture, we believe we are well positioned to continue improving profitability and growing tangible book value in 2026.”

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(1)			Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.
(2)			Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000.

Key Financial Measures


	As of and for the Three Months Ended									As of and for the Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2025			2025			2024			2025			2024
Per Common Share Data
Basic Earnings Per Share	$	0.45		$	0.38		$	0.26		$	1.53		$	1.05
Diluted Earnings Per Share		0.43			0.38			0.26			1.49			1.03
Adjusted Diluted Earnings Per Share ⁽¹⁾		0.44			0.39			0.27			1.52			1.04
Book Value Per Share		16.23			15.62			14.21			16.23			14.21
Tangible Book Value Per Share ⁽¹⁾		15.55			14.93			13.49			15.55			13.49

Financial Ratios
Return on Average Assets ⁽²⁾		0.97	%		0.86	%		0.68	%		0.87	%		0.70	%
Pre-Provision Net Revenue Return on Average Assets ⁽¹⁾⁽²⁾		1.35			1.19			1.05			1.24			0.98
Return on Average Shareholders' Equity ⁽²⁾		10.38			9.47			7.16			9.53			7.45
Return on Average Tangible Common Equity⁽¹⁾⁽²⁾		11.53			10.50			7.43			10.56			7.75
Net Interest Margin⁽³⁾		2.75			2.63			2.32			2.63			2.26
Core Net Interest Margin ⁽¹⁾⁽³⁾		2.62			2.52			2.24			2.50			2.19
Cost of Total Deposits		2.97			3.19			3.40			3.12			3.44
Cost of Funds		3.07			3.25			3.38			3.17			3.44
Efficiency Ratio⁽¹⁾		51.6			54.7			56.8			53.5			57.9
Noninterest Expense to Average Assets ⁽²⁾		1.48			1.47			1.40			1.47			1.35
Tangible Common Equity to Tangible Assets ⁽¹⁾		8.01			7.71			7.36			8.01			7.36
Common Equity Tier 1 Risk-based Capital Ratio (Consolidated) ⁽⁴⁾		9.17			9.08			9.08			9.17			9.08

Adjusted Financial Ratios ⁽¹⁾
Adjusted Return on Average Assets ⁽²⁾		0.99	%		0.88	%		0.71	%		0.89	%		0.71	%
Adjusted Pre-Provision Net Revenue Return on Average Assets ⁽²⁾		1.38			1.23			1.09			1.27			0.99
Adjusted Return on Average Shareholders' Equity ⁽²⁾		10.54			9.77			7.49			9.69			7.50
Adjusted Return on Average Tangible Common Equity ⁽²⁾		11.72			10.86			7.82			10.77			7.82
Adjusted Efficiency Ratio		50.7			53.2			55.2			52.2			57.3
Adjusted Noninterest Expense to Average Assets ⁽²⁾		1.45			1.43			1.36			1.43			1.34

Balance Sheet and Asset Quality (dollars in thousands)
Total Assets	$	5,407,002		$	5,359,994		$	5,066,242		$	5,407,002		$	5,066,242
Total Loans, Gross		4,309,517			4,214,554			3,868,514			4,309,517			3,868,514
Deposits		4,320,369			4,292,764			4,086,767			4,320,369			4,086,767
Loan to Deposit Ratio		99.7	%		98.2	%		94.7	%		99.7	%		94.7	%
Net Loan Charge-Offs to Average Loans ⁽²⁾		0.11			0.03			0.03			0.04			0.03
Nonperforming Assets to Total Assets⁽⁵⁾		0.41			0.19			0.01			0.41			0.01
Allowance for Credit Losses to Total Loans		1.31			1.34			1.35			1.31			1.35

(1)			Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.
(2)			Annualized.
(3)			Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of 21%.
(4)			Preliminary data. Current period subject to change prior to filings with applicable regulatory agencies.
(5)			Nonperforming assets are defined as nonaccrual loans plus 90 days past due and still accruing plus foreclosed assets.

Income Statement

Net Interest Margin and Net Interest Income

Net interest margin (on a fully tax-equivalent basis) for the fourth quarter of 2025 was 2.75%, a 12 basis point increase from 2.63% in the third quarter of 2025, and a 43 basis point increase from 2.32% in the fourth quarter of 2024. Core net interest margin (on a fully tax-equivalent basis), a non-GAAP financial measure which excludes the impact of loan fees and purchase accounting accretion attributable to the acquisition of FMCB, was 2.62% for the fourth quarter of 2025, a 10 basis point increase from 2.52% in the third quarter of 2025, and a 38 basis point increase from 2.24% in the fourth quarter of 2024.

Net interest margin expanded to 2.75% in the fourth quarter of 2025 primarily due to growth in the loan portfolio at accretive yields and lower rates paid on deposits.
The year-over-year expansion in margin was primarily due to growth in the securities and loan portfolios at higher yields and lower rates paid on deposit balances, offset by higher average balances and rates paid on FHLB advances, as well as the refinancing of subordinated debt at the end of the second quarter of 2025.

Net interest income was $35.7 million for the fourth quarter of 2025, an increase of $1.6 million from $34.1 million in the third quarter of 2025, and an increase of $8.7 million from $27.0 million in the fourth quarter of 2024.

The linked-quarter increase in net interest income was primarily due to growth in the loan portfolio and lower rates paid on deposit balances, offset partially by lower cash balances.
The year-over-year increase in net interest income was primarily due to growth in the loan portfolio, lower rates paid on deposits, and purchase accounting accretion, offset partially by growth in deposit balances as well as higher balances and rates paid on FHLB advances.

Interest income was $73.3 million for the fourth quarter of 2025, a decrease of $324,000 from $73.6 million in the third quarter of 2025, and an increase of $10.0 million from $63.3 million in the fourth quarter of 2024.

The yield on interest earning assets (on a fully tax-equivalent basis) was 5.58% in the fourth quarter of 2025, compared to 5.63% in the third quarter of 2025, and 5.40% in the fourth quarter of 2024.
The linked-quarter decrease in the yield on interest earning assets was primarily due to 0.75% of Fed interest rate cuts which occurred in the last four months of the year.
The year-over-year increase in the yield on interest earning assets was primarily due to growth and repricing of the loan and securities portfolios at accretive yields and purchase accounting accretion.
The aggregate loan yield was 5.78% in the fourth quarter of 2025, one basis point lower than 5.79% in the third quarter of 2025, and 23 basis points higher than 5.55% in the fourth quarter of 2024.
Core loan yield, a non-GAAP financial measure, was 5.63% in the fourth quarter of 2025, three basis points lower than 5.66% in the third quarter of 2025, and 16 basis points higher than 5.47% in the fourth quarter of 2024.

A summary of interest and fees recognized on loans for the periods indicated is as follows:


	Three Months Ended
	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
Interest	5.63	%	5.66	%	5.59	%	5.50	%	5.47	%
Fees	0.10		0.09		0.11		0.07		0.08
Accretion	0.05		0.04		0.04		0.04		—
Yield on Loans	5.78	%	5.79	%	5.74	%	5.61	%	5.55	%

Interest expense was $37.6 million for the fourth quarter of 2025, a decrease of $1.9 million from $39.5 million in the third quarter of 2025, and an increase of $1.3 million from $36.4 million in the fourth quarter of 2024.

The cost of interest bearing liabilities was 3.73% in the fourth quarter of 2025, compared to 3.89% in the third quarter of 2025, and 4.06% in the fourth quarter of 2024.
The linked-quarter decrease in the cost of interest bearing liabilities was primarily due to lower rates paid on interest bearing deposits as the result of recent fed rate cuts, offset partially by higher balances and rates paid on FHLB advances.
The year-over-year decrease in the cost of interest bearing liabilities was primarily due to lower interest bearing deposit costs, offset partially by growth in deposits and higher balances and rates paid on FHLB advances and subordinated debentures.

Interest expense on deposits was $32.2 million for the fourth quarter of 2025, a decrease of $2.4 million from $34.6 million in the third quarter of 2025, and a decrease of $607,000 from $32.8 million in the fourth quarter of 2024.

The cost of total deposits was 2.97% in the fourth quarter of 2025, 22 basis points lower than 3.19% in the third quarter of 2025, and 43 basis points lower than 3.40% in the fourth quarter of 2024.
The linked-quarter decrease in the cost of total deposits was primarily due to lower rates paid on interest bearing deposits following interest rate cuts, lower average balance of brokered deposits, and an increase in noninterest bearing deposits.
The year-over-year decrease in the cost of total deposits was primarily due to lower rates paid on deposits following interest rate cuts in 2024 and 2025, lower average brokered deposit balances, and an increase in noninterest bearing deposits.

Provision for Credit Losses

The provision for credit losses on loans and leases was $1.3 million for the fourth quarter of 2025, compared to $900,000 for the third quarter of 2025 and $1.5 million for the fourth quarter of 2024.

The provision recorded in the fourth quarter of 2025 was primarily attributable to growth in the loan portfolio and an increase in historical loss rates.
The allowance for credit losses on loans to total loans was 1.31% at December 31, 2025, compared to 1.34% at September 30, 2025, and 1.35% at December 31, 2024.

The provision for credit losses for off-balance sheet credit exposures was $200,000 for the fourth quarter of 2025, stable with the third quarter of 2025, and compared to $725,000 for the fourth quarter of 2024.

A provision was recorded during the fourth quarter of 2025 due to an increase in the volume of newly originated loans with unfunded commitments.

Noninterest Income

Noninterest income was $3.1 million for the fourth quarter of 2025, an increase of $1.1 million from $2.1 million for the third quarter of 2025, and an increase of $615,000 from $2.5 million for the fourth quarter of 2024.

The linked-quarter increase was primarily due to higher swap fees and letter of credit fees.
The year-over-year increase was primarily due to higher investment advisory fees, other income, and swap fees, offset partially by lower letter of credit fees.

Noninterest Expense

Noninterest expense was $20.2 million for the fourth quarter of 2025, an increase of $282,000 from $20.0 million for the third quarter of 2025 and an increase of $3.4 million from $16.8 million for the fourth quarter of 2024.

Noninterest expense for the fourth quarter of 2025 included $346,000 of merger-related expenses associated with the acquisition of FMCB, compared to $530,000 for the third quarter of 2025, and $488,000 for the fourth quarter of 2024.
The linked-quarter increase was primarily due to increases in salaries and employee benefits and professional and consulting fees.
The year-over-year increase was primarily attributable to increases in salaries and employee benefits, professional and consulting fees, marketing and advertising, operating costs related to the FMCB acquisition, and merger-related expenses.
The efficiency ratio, a non-GAAP financial measure, was 51.6% for the fourth quarter of 2025, compared to 54.7% for the third quarter of 2025, and 56.8% for the fourth quarter of 2024.
The Company had 322 full-time equivalent employees at December 31, 2025, compared to 325 at September 30, 2025, and 290 at December 31, 2024. The year-over-year increase was largely driven by the hiring of key talent across the organization.

Income Taxes

The effective combined federal and state income tax rate was 22.2% for the fourth quarter of 2025, compared to 23.2% for the third quarter of 2025, and 22.0% for the fourth quarter of 2024.

Balance Sheet

Loans


(dollars in thousands)	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
Commercial	$	547,245	$	533,476	$	549,259	$	528,801	$	497,662
Leases		43,407		43,186		44,817		43,958		44,291
Construction and Land Development		216,163		159,991		136,438		128,073		97,255
1-4 Family Construction		45,152		41,739		39,095		39,438		41,961
Real Estate Mortgage:
1 - 4 Family Mortgage		496,142		487,297		474,269		479,461		474,383
Multifamily		1,587,338		1,578,223		1,555,731		1,534,747		1,425,610
CRE Owner Occupied		189,754		192,966		192,837		196,080		191,248
CRE Nonowner Occupied		1,165,104		1,158,622		1,137,007		1,055,157		1,083,108
Total Real Estate Mortgage Loans		3,438,338		3,417,108		3,359,844		3,265,445		3,174,349
Consumer and Other		19,212		19,054		16,346		14,361		12,996
Total Loans, Gross		4,309,517		4,214,554		4,145,799		4,020,076		3,868,514
Allowance for Credit Losses on Loans		(56,443)		(56,390)		(55,765)		(53,766)		(52,277)
Net Deferred Loan Fees		(8,966)		(8,282)		(7,629)		(7,218)		(6,801)
Total Loans, Net	$	4,244,108	$	4,149,882	$	4,082,405	$	3,959,092	$	3,809,436

Total gross loans at December 31, 2025 were $4.31 billion, an increase of $95.0 million, or 8.9% annualized, over total gross loans of $4.21 billion at September 30, 2025, and an increase of $441.0 million, or 11.4%, over total gross loans of $3.87 billion at December 31, 2024.

The increase in the loan portfolio during the fourth quarter of 2025 was due to strong loan originations and advances outpacing the increase in payoffs and paydowns.

Deposits


(dollars in thousands)	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
Noninterest Bearing Transaction Deposits	$	923,070	$	822,632	$	787,868	$	791,528	$	800,763
Interest Bearing Transaction Deposits		893,740		860,774		791,748		840,378		862,242
Savings and Money Market Deposits		1,380,922		1,428,726		1,441,694		1,372,191		1,259,503
Time Deposits		312,154		346,214		344,882		326,821		338,506
Brokered Deposits		810,483		834,418		870,550		831,539		825,753
Total Deposits	$	4,320,369	$	4,292,764	$	4,236,742	$	4,162,457	$	4,086,767

Total deposits at December 31, 2025 were $4.32 billion, an increase of $27.6 million, or 2.6% annualized, over total deposits of $4.29 billion at September 30, 2025, and an increase of $233.6 million, or 5.7%, over total deposits of $4.09 billion at December 31, 2024.

Core deposits, defined as total deposits excluding brokered deposits and certificates of deposits greater than $250,000, increased $72.6 million, or 8.8% annualized, from September 30, 2025, and increased $244.6 million, or 7.9%, from December 31, 2024.
Noninterest bearing deposits increased $100.4 million, or 48.4% annualized, from September 30, 2025, and increased $122.3 million, or 15.3%, from December 31, 2024. Based on the nature of the Company’s client base, noninterest bearing deposit balances can fluctuate from quarter to quarter, as deposit growth is not always linear.
Brokered deposits decreased $23.9 million, or 11.4% annualized, from September 30, 2025, and decreased $15.3 million, or 1.8%, from December 31, 2024. While balances are down, brokered deposits continue to be used as a supplemental funding source, as needed.

Asset Quality

Overall asset quality remained strong due to the Company’s measured risk selection, consistent underwriting standards, active credit oversight, and experienced lending and credit teams.

Annualized net charge-offs as a percentage of average loans were 0.11% for the fourth quarter of 2025, compared to 0.03% for both the third quarter of 2025 and the fourth quarter of 2024.
Net charge-offs as a percentage of average loans for the year ended December 31, 2025 were 0.04%, compared to 0.03% for the year ended December 31, 2024.
At December 31, 2025, the Company’s nonperforming assets, which include nonaccrual loans, loans past due 90 days and still accruing, and foreclosed assets, were $22.0 million, or 0.41% of total assets, compared to $10.0 million, or 0.19% of total assets, at September 30, 2025, and $301,000, or 0.01% of total assets, at December 31, 2024.
Loans with potential weaknesses that warranted a watch/special mention risk rating at December 31, 2025 totaled $47.8 million, compared to $40.6 million at September 30, 2025, and $46.6 million at December 31, 2024.
Loans that warranted a substandard risk rating at December 31, 2025 totaled $53.0 million, compared to $58.1 million at September 30, 2025, and $21.8 million at December 31, 2024.

Capital

Total shareholders’ equity at December 31, 2025 was $517.1 million, an increase of $19.6 million, or 15.7% annualized, compared to $497.5 million at September 30, 2025, and an increase of $59.2 million, or 12.9%, over $457.9 million at December 31, 2024.

The linked-quarter increase was primarily due to net income retained, a decrease in unrealized losses in the securities portfolio, and an increase in unrealized gains in the derivatives portfolio, offset partially by preferred stock dividends.
The year-over-year increase was primarily due to net income retained and a decrease in unrealized losses in the securities portfolio, offset partially by a decrease in unrealized gains in the derivatives portfolio, preferred stock dividends, and stock repurchases.
The Consolidated Common Equity Tier 1 Risk-Based Capital Ratio was 9.17% at December 31, 2025, compared to 9.08% at both September 30, 2025 and December 31, 2024.
Tangible common equity as a percentage of tangible assets, a non-GAAP financial measure, was 8.01% at December 31, 2025, compared to 7.71% at September 30, 2025, and 7.36% at December 31, 2024.

Tangible book value per share, a non-GAAP financial measure, was $15.55 as of December 31, 2025, an increase of 16.5% annualized from $14.93 as of September 30, 2025, and an increase of 15.3% from $13.49 as of December 31, 2024.

The Company did not repurchase any shares of its common stock during the fourth quarter of 2025.

The Company had $13.1 million remaining under its current share repurchase authorization at December 31, 2025.

Today, the Company also announced that its Board of Directors has declared a quarterly cash dividend on its 5.875% Non-Cumulative Perpetual Preferred Stock, Series A (“Series A Preferred Stock”). The quarterly cash dividend of $36.72 per share, equivalent to $0.3672 per depositary share, each representing a 1/100th interest in a share of the Series A Preferred Stock (Nasdaq: BWBBP), is payable on March 2, 2026 to shareholders of record of the Series A Preferred Stock at the close of business on February 13, 2026.

Conference Call and Webcast

The Company will host a conference call to discuss its fourth quarter 2025 financial results on Wednesday, January 28, 2026 at 8:00 a.m. Central Time. The conference call can be accessed by dialing 844-481-2913 and requesting to join the Bridgewater Bancshares earnings call. To listen to a replay of the conference call via phone, please dial 855-669-9658 and enter access code 9545199. The replay will be available through February 4, 2026. The conference call will also be available via a live webcast on the Investor Relations section of the Company’s website, investors.bridgewaterbankmn.com, and archived for replay.

About the Company

Bridgewater Bancshares, Inc. (Nasdaq: BWB) is a St. Louis Park, Minnesota-based financial holding company founded in 2005. Its banking subsidiary, Bridgewater Bank, is a premier, full-service bank dedicated to providing responsive support and simple solutions to businesses, entrepreneurs, and successful individuals across the Twin Cities. Bridgewater offers a comprehensive suite of products and services spanning deposits, lending, and treasury management solutions. Bridgewater has also received numerous awards for its banking services and esteemed corporate culture. With total assets of $5.4 billion as of December 31, 2025 and eight strategically located branches, Bridgewater is one of the largest locally-led banks in Minnesota and is committed to being the finest entrepreneurial bank. For more information, please visit www.bridgewaterbankmn.com.

Use of Non-GAAP Financial Measures

In addition to the results presented in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company routinely supplements its evaluation with an analysis of certain non-GAAP financial measures. The Company believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors to help them understand the Company’s operating performance and trends, and to facilitate comparisons with the performance of peers. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of non-GAAP disclosures used in this earnings release to the comparable GAAP measures are provided in the accompanying tables.

Forward-Looking Statements

This earnings release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, identified by words such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized”, “target” and “outlook”, or the negative version of those words or other comparable words of a future or forward-looking nature.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: interest rate risk, including the effects of changes in interest rates; effects on the U.S. economy resulting from actions taken by the federal government, including the threat or implementation of tariffs, immigration enforcement and changes in foreign policy; fluctuations in the values of the securities held in our securities portfolio, including as the result of changes in interest rates; business and economic conditions generally and in the financial services industry, nationally and within our market area, including the level and impact of inflation, and future monetary policies of the Federal Reserve and executive orders in response thereto, and possible recession; credit risk and risks from concentrations (including by type of borrower, geographic area, collateral and industry) within the Company’s loan portfolio or large loans to certain borrowers (including CRE loans); the overall health of the local and national real estate market; our ability to successfully manage credit risk; our ability to maintain an adequate level of allowance for credit losses on loans; new or revised accounting standards as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board, Securities and Exchange Commission or Public Company Accounting Oversight Board; the concentration of large deposits from certain clients, including those who have balances above current Federal Deposit Insurance Corporation insurance limits; our ability to successfully manage liquidity risk, which may increase our dependence on non-core funding sources such as brokered deposits, and negatively impact our cost of funds; our ability to raise additional capital to implement our business plan; our ability to implement our growth strategy and manage costs effectively; the composition of our senior leadership team and our ability to attract and retain key personnel; talent and labor shortages and employee turnover; the occurrence of fraudulent activity, breaches or failures of our or our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; interruptions involving our information technology and telecommunications systems or third-party servicers; competition in the financial services industry, including from nonbank competitors such as credit unions, “fintech” companies and digital asset service providers; the effectiveness of our risk management framework; rapid technological changes implemented by us and other parties in the financial services industry, including third-party vendors, which may be more difficult to implement or more expensive than anticipated or which may have unforeseen consequence to us and our customers, including the development and implementation of tools incorporating artificial intelligence; the commencement, cost and outcome of litigation and other legal proceedings and regulatory actions against us; the impact of recent and future legislative and regulatory changes, domestic or foreign; risks related to climate change and the negative impact it may have on our customers and their businesses; the imposition of tariffs or other governmental policies impacting the global supply chain and the value of products produced by our commercial borrowers; severe weather, natural disasters, wide spread disease or pandemics, acts of war, military conflicts, or terrorism, changes in foreign relations, or other adverse external events, including ongoing conflicts in the Middle East, the Russian invasion of Ukraine and recent military activities in Venezuela; potential impairment to the goodwill the Company recorded in connection with acquisitions; risks associated with our integration of FMCB, including the possibility that the merger may be more difficult or expensive to integrate than anticipated, and the effect of the merger on the Company’s customer and employee relationships and operating results; changes to U.S. or state tax laws, regulations and governmental policies concerning the Company’s general business, including changes in interpretation or prioritization of such rules and regulations; the impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Bridgewater Bancshares, Inc. and Subsidiaries
Financial Highlights
(dollars in thousands, except share data)


	As of and for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)	2025			2025			2025			2025			2024
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Income Statement
Net Interest Income	$	35,687		$	34,091		$	32,452		$	30,208		$	26,967
Provision for Credit Losses		1,450			1,100			2,000			1,500			2,175
Noninterest Income		3,148			2,061			3,627			2,079			2,533
Noninterest Expense		20,238			19,956			18,941			18,136			16,812
Net Income		13,334			11,601			11,520			9,633			8,204
Net Income Available to Common Shareholders		12,320			10,588			10,506			8,620			7,190

Per Common Share Data
Basic Earnings Per Share	$	0.45		$	0.38		$	0.38		$	0.31		$	0.26
Diluted Earnings Per Share		0.43			0.38			0.38			0.31			0.26
Adjusted Diluted Earnings Per Share ⁽¹⁾		0.44			0.39			0.37			0.32			0.27
Book Value Per Share		16.23			15.62			14.92			14.60			14.21
Tangible Book Value Per Share ⁽¹⁾		15.55			14.93			14.21			13.89			13.49
Basic Weighted Average Shares Outstanding		27,641,138			27,504,840			27,460,982			27,568,772			27,459,433
Diluted Weighted Average Shares Outstanding		28,354,756			28,190,406			27,998,008			28,036,506			28,055,532
Shares Outstanding at Period End		27,759,970			27,584,732			27,470,283			27,560,150			27,552,449

Financial Ratios
Return on Average Assets ⁽²⁾		0.97	%		0.86	%		0.90	%		0.77	%		0.68	%
Pre-Provision Net Revenue Return on Average Assets ⁽¹⁾⁽²⁾		1.35			1.19			1.27			1.13			1.05
Return on Average Shareholders' Equity ⁽²⁾		10.38			9.47			9.80			8.39			7.16
Return on Average Tangible Common Equity ⁽¹⁾⁽²⁾		11.53			10.50			10.93			9.22			7.43
Net Interest Margin⁽³⁾		2.75			2.63			2.62			2.51			2.32
Core Net Interest Margin ⁽¹⁾⁽³⁾		2.62			2.52			2.49			2.37			2.24
Cost of Total Deposits		2.97			3.19			3.16			3.18			3.40
Cost of Funds		3.07			3.25			3.19			3.17			3.38
Efficiency Ratio⁽¹⁾		51.6			54.7			52.6			55.5			56.8
Noninterest Expense to Average Assets ⁽²⁾		1.48			1.47			1.47			1.45			1.40

Adjusted Financial Ratios ⁽¹⁾
Adjusted Return on Average Assets ⁽²⁾		0.99	%		0.88	%		0.88	%		0.80	%		0.71	%
Adjusted Pre-Provision Net Revenue Return on Average Assets ⁽²⁾		1.38			1.23			1.31			1.18			1.09
Adjusted Return on Average Shareholders' Equity ⁽²⁾		10.54			9.77			9.64			8.77			7.49
Adjusted Return on Average Tangible Common Equity ⁽²⁾		11.72			10.86			10.74			9.68			7.82
Adjusted Efficiency Ratio		50.7			53.2			51.5			53.7			55.2
Adjusted Noninterest Expense to Average Assets ⁽²⁾		1.45			1.43			1.43			1.41			1.36

Balance Sheet
Total Assets	$	5,407,002		$	5,359,994		$	5,296,673		$	5,136,808		$	5,066,242
Total Loans, Gross		4,309,517			4,214,554			4,145,799			4,020,076			3,868,514
Deposits		4,320,369			4,292,764			4,236,742			4,162,457			4,086,767
Total Shareholders' Equity		517,095			497,463			476,282			468,975			457,935
Loan to Deposit Ratio		99.7	%		98.2	%		97.9	%		96.6	%		94.7	%
Core Deposits to Total Deposits ⁽⁴⁾		77.6			76.4			75.2			76.2			76.0

Asset Quality
Net Loan Charge-Offs to Average Loans⁽²⁾		0.11	%		0.03	%		0.00	%		0.00	%		0.03	%
Nonperforming Assets to Total Assets ⁽⁵⁾		0.41			0.19			0.19			0.20			0.01
Allowance for Credit Losses to Total Loans		1.31			1.34			1.35			1.34			1.35


	As of and for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)	2025			2025			2025			2025			2024
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Capital Ratios (Consolidated) ⁽⁶⁾
Tier 1 Leverage Ratio		9.20	%		9.02	%		9.14	%		9.10	%		9.45	%
Common Equity Tier 1 Risk-based Capital Ratio		9.17			9.08			9.03			9.03			9.08
Tier 1 Risk-based Capital Ratio		10.57			10.52			10.51			10.55			10.64
Total Risk-based Capital Ratio		14.12			14.12			14.17			13.62			13.76
Tangible Common Equity to Tangible Assets ⁽¹⁾		8.01			7.71			7.40			7.48			7.36

(1)			Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.
(2)			Annualized.
(3)			Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of 21%.
(4)			Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000.
(5)			Nonperforming assets are defined as nonaccrual loans plus 90 days past due and still accruing plus foreclosed assets.
(6)			Preliminary data. Current period subject to change prior to filings with applicable regulatory agencies.

Bridgewater Bancshares, Inc. and Subsidiaries
Consolidated Balance Sheets
(dollars in thousands, except share data)


	December 31,		September 30,			June 30,			March 31,			December 31,
	2025		2025			2025			2025			2024
		(Unaudited)		(Unaudited)			(Unaudited)			(Unaudited)
Assets
Cash and Cash Equivalents	$	123,511	$	131,818		$	217,495		$	166,205		$	229,760
Bank-Owned Certificates of Deposit		—		3,658			3,897			4,139			4,377
Securities Available for Sale, at Fair Value		776,441		826,473			743,889			764,626			768,247
Loans, Net of Allowance for Credit Losses		4,244,108		4,149,882			4,082,405			3,959,092			3,809,436
Federal Home Loan Bank (FHLB) Stock, at Cost		21,122		21,373			21,472			18,984			19,297
Premises and Equipment, Net		51,576		50,955			49,979			49,442			49,533
Foreclosed Assets		—		—			185			—			—
Accrued Interest		18,929		19,244			17,711			17,700			17,711
Goodwill		11,982		11,982			11,982			11,982			11,982
Other Intangible Assets, Net		6,930		7,160			7,390			7,620			7,850
Bank-Owned Life Insurance		46,576		46,121			45,413			45,025			44,646
Other Assets		105,827		91,328			94,855			91,993			103,403
Total Assets	$	5,407,002	$	5,359,994		$	5,296,673		$	5,136,808		$	5,066,242

Liabilities and Equity
Liabilities
Deposits:
Noninterest Bearing	$	923,070	$	822,632		$	787,868		$	791,528		$	800,763
Interest Bearing		3,397,299		3,470,132			3,448,874			3,370,929			3,286,004
Total Deposits		4,320,369		4,292,764			4,236,742			4,162,457			4,086,767
Notes Payable		—		—			13,750			13,750			13,750
FHLB Advances		399,500		404,500			404,500			349,500			359,500
Subordinated Debentures, Net of Issuance Costs		108,677		108,588			108,689			79,766			79,670
Accrued Interest Payable		3,227		5,208			4,110			4,525			4,008
Other Liabilities		58,134		51,471			52,600			57,835			64,612
Total Liabilities		4,889,907		4,862,531			4,820,391			4,667,833			4,608,307

Shareholders' Equity
Preferred Stock- $0.01 par value; Authorized 10,000,000
Preferred Stock - Issued and Outstanding 27,600 Series A shares ($2,500 liquidation preference) at December 31, 2025 (unaudited), September 30, 2025 (unaudited), June 30, 2025 (unaudited), March 31, 2025 (unaudited), and December 31, 2024		66,514		66,514			66,514			66,514			66,514
Common Stock- $0.01 par value; Authorized 75,000,000
Common Stock - Issued and Outstanding 27,759,970 at December 31, 2025 (unaudited), 27,584,732 at September 30, 2025 (unaudited), 27,470,283 at June 30, 2025 (unaudited), 27,560,150 at March 31, 2025 (unaudited), and 27,552,449 at December 31, 2024		278		276			275			276			276
Additional Paid-In Capital		98,287		97,101			95,174			95,503			95,088
Retained Earnings		351,455		339,135			328,547			318,041			309,421
Accumulated Other Comprehensive Gain (Loss)		561		(5,563	)		(14,228	)		(11,359	)		(13,364	)
Total Shareholders' Equity		517,095		497,463			476,282			468,975			457,935
Total Liabilities and Equity	$	5,407,002	$	5,359,994		$	5,296,673		$	5,136,808		$	5,066,242

Bridgewater Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income
(dollars in thousands, except per share data)


	Three Months Ended										Year Ended
	December 31,		September 30,		June 30,		March 31,		December 31,		December 31,		December 31,
	2025		2025		2025		2025		2024		2025		2024
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Interest Income
Loans, Including Fees	$	61,444	$	60,038	$	57,888	$	53,820	$	51,870	$	233,190	$	204,731
Investment Securities		9,720		10,371		9,200		9,397		9,109		38,688		33,927
Other		2,145		3,224		2,110		2,491		2,345		9,970		7,240
Total Interest Income		73,309		73,633		69,198		65,708		63,324		281,848		245,898


Interest Expense
Deposits		32,203		34,615		32,497		32,103		32,810		131,418		128,805
Federal Funds Purchased		5		—		16		—		42		21		1,201
Notes Payable		—		106		260		258		275		624		1,162
FHLB Advances		3,524		2,933		2,852		2,156		2,229		11,465		8,554
Subordinated Debentures		1,890		1,888		1,121		983		1,001		5,882		3,983
Total Interest Expense		37,622		39,542		36,746		35,500		36,357		149,410		143,705

Net Interest Income		35,687		34,091		32,452		30,208		26,967		132,438		102,193
Provision for Credit Losses		1,450		1,100		2,000		1,500		2,175		6,050		3,525

Net Interest Income After Provision for Credit Losses		34,237		32,991		30,452		28,708		24,792		126,388		98,668

Noninterest Income
Customer Service Fees		521		501		496		495		394		2,013		1,475
Net Gain on Sales of Securities		80		59		474		1		—		614		385
Net Gain on Sales of Foreclosed Assets		—		—		—		—		62		—		62
Letter of Credit Fees		668		383		323		455		849		1,829		1,976
Debit Card Interchange Fees		178		173		152		137		145		640		593
Swap Fees		651		—		938		42		521		1,631		547
Bank-Owned Life Insurance		455		440		387		379		362		1,661		1,327
Investment Advisory Fees		227		208		213		325		—		973		—
FHLB Prepayment Income		—		—		301		—		—		301		—
Other Income		368		297		343		245		200		1,253		1,003
Total Noninterest Income		3,148		2,061		3,627		2,079		2,533		10,915		7,368

Noninterest Expense
Salaries and Employee Benefits		12,434		12,229		11,363		11,371		10,605		47,397		39,564
Occupancy and Equipment		1,171		1,266		1,274		1,234		1,181		4,945		4,399
FDIC Insurance Assessment		770		775		750		450		609		2,745		2,959
Data Processing		638		637		625		619		445		2,519		1,697
Professional and Consulting Fees		1,404		1,261		1,110		994		989		4,769		3,879
Derivative Collateral Fees		237		309		372		451		426		1,369		1,821
Information Technology and Telecommunications		976		973		971		971		877		3,891		3,325
Marketing and Advertising		718		658		435		327		479		2,138		1,485
Intangible Asset Amortization		231		230		230		230		52		921		78
Other Expense		1,659		1,618		1,811		1,489		1,149		6,577		4,093
Total Noninterest Expense		20,238		19,956		18,941		18,136		16,812		77,271		63,300

Income Before Income Taxes		17,147		15,096		15,138		12,651		10,513		60,032		42,736
Provision for Income Taxes		3,813		3,495		3,618		3,018		2,309		13,944		9,911
Net Income		13,334		11,601		11,520		9,633		8,204		46,088		32,825
Preferred Stock Dividends		(1,014)		(1,013)		(1,014)		(1,013)		(1,014)		(4,054)		(4,054)
Net Income Available to Common Shareholders	$	12,320	$	10,588	$	10,506	$	8,620	$	7,190	$	42,034	$	28,771

Earnings Per Share
Basic	$	0.45	$	0.38	$	0.38	$	0.31	$	0.26	$	1.53	$	1.05
Diluted		0.43		0.38		0.38		0.31		0.26		1.49		1.03

Bridgewater Bancshares, Inc. and Subsidiaries
Analysis of Average Balances, Yields and Rates
(dollars in thousands, except per share data)
(Unaudited)


	For the Three Months Ended
	December 31, 2025						September 30, 2025						December 31, 2024
	Average		Interest		Yield/		Average		Interest		Yield/		Average		Interest		Yield/
(dollars in thousands)	Balance		& Fees		Rate		Balance		& Fees		Rate		Balance		& Fees		Rate
Interest Earning Assets:
Cash Investments	$	182,129	$	1,649	3.59	%	$	256,174	$	2,732	4.23	%	$	181,904	$	1,968	4.30	%
Investment Securities:
Taxable Investment Securities		671,444		8,001	4.73			730,643		9,448	5.13			723,038		8,814	4.85
Tax-Exempt Investment Securities⁽¹⁾		147,832		2,177	5.84			81,962		1,168	5.66			28,681		374	5.19
Total Investment Securities		819,276		10,178	4.93			812,605		10,616	5.18			751,719		9,188	4.86
Loans ⁽¹⁾⁽²⁾		4,239,936		61,746	5.78			4,132,987		60,317	5.79			3,730,532		52,078	5.55
Federal Home Loan Bank Stock		23,359		496	8.43			21,373		492	9.12			18,686		377	8.02
Total Interest Earning Assets		5,264,700		74,069	5.58	%		5,223,139		74,157	5.63	%		4,682,841		63,611	5.40	%
Noninterest Earning Assets		173,855						149,304						105,195
Total Assets	$	5,438,555					$	5,372,443					$	4,788,036

Interest Bearing Liabilities:
Deposits:
Interest Bearing Transaction Deposits	$	891,419	$	7,912	3.52	%	$	843,905	$	8,037	3.78	%	$	836,155	$	8,962	4.26	%
Savings and Money Market Deposits		1,445,588		12,597	3.46			1,473,465		13,465	3.63			1,073,194		10,795	4.00
Time Deposits		333,904		3,282	3.90			342,926		3,703	4.28			336,917		3,650	4.31
Brokered Deposits		775,750		8,412	4.30			856,516		9,410	4.36			875,015		9,403	4.27
Total Interest Bearing Deposits		3,446,661		32,203	3.71			3,516,812		34,615	3.90			3,121,281		32,810	4.18
Federal Funds Purchased		496		5	4.22			—		—	—			3,290		42	5.09
Notes Payable		—		—	—			5,679		106	7.40			13,750		275	7.95
FHLB Advances		449,065		3,524	3.11			404,500		2,933	2.88			347,652		2,229	2.55
Subordinated Debentures		108,629		1,890	6.90			108,639		1,888	6.89			79,616		1,001	5.00
Total Interest Bearing Liabilities		4,004,851		37,622	3.73	%		4,035,630		39,542	3.89	%		3,565,589		36,357	4.06	%

Noninterest Bearing Liabilities:
Noninterest Bearing Transaction Deposits		854,687						793,760						718,227
Other Noninterest Bearing Liabilities		69,362						57,184						48,271
Total Noninterest Bearing Liabilities		924,049						850,944						766,498
Shareholders' Equity		509,655						485,869						455,949
Total Liabilities and Shareholders' Equity	$	5,438,555					$	5,372,443					$	4,788,036
Net Interest Income / Interest Rate Spread				36,447	1.86	%				34,615	1.74	%				27,254	1.35	%
Net Interest Margin ⁽³⁾					2.75	%					2.63	%					2.32	%
Taxable Equivalent Adjustment:
Tax-Exempt Investment Securities and Loans				(760)						(524)						(287)
Net Interest Income			$	35,687					$	34,091					$	26,967

(1)			Interest income and average rates for tax-exempt investment securities and loans are presented on a tax-equivalent basis, assuming a statutory federal income tax rate of 21%.
(2)			Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.
(3)			Net interest margin includes the tax equivalent adjustment and represents the annualized results of: (i) the difference between interest income on interest earning assets and the interest expense on interest bearing liabilities, divided by (ii) average interest earning assets for the period.

Bridgewater Bancshares, Inc. and Subsidiaries
Analysis of Average Balances, Yields and Rates
(dollars in thousands, except per share data)
(Unaudited)


	For the Year Ended
	December 31, 2025						December 31, 2024
	Average		Interest		Yield/		Average		Interest		Yield/
(dollars in thousands)	Balance		& Fees		Rate		Balance		& Fees		Rate
Interest Earning Assets:
Cash Investments	$	203,433	$	8,118	3.99	%	$	124,205	$	5,690	4.58	%
Investment Securities:
Taxable Investment Securities		726,164		35,365	4.87			668,012		32,681	4.89
Tax-Exempt Investment Securities⁽¹⁾		74,649		4,207	5.64			30,864		1,577	5.11
Total Investment Securities		800,813		39,572	4.94			698,876		34,258	4.90
Loans ⁽¹⁾⁽²⁾		4,088,601		234,164	5.73			3,738,260		205,646	5.50
Federal Home Loan Bank Stock		21,296		1,852	8.70			18,256		1,550	8.49
Total Interest Earning Assets		5,114,143		283,706	5.55	%		4,579,597		247,144	5.40	%
Noninterest Earning Assets		154,410						103,547
Total Assets	$	5,268,553					$	4,683,144
Interest Bearing Liabilities:
Deposits:
Interest Bearing Transaction Deposits	$	852,426	$	31,907	3.74	%	$	776,768	$	34,294	4.41	%
Savings and Money Market Deposits		1,401,187		50,689	3.62			956,300		39,297	4.11
Time Deposits		334,003		13,562	4.06			342,582		14,585	4.26
Brokered Deposits		825,114		35,260	4.27			963,676		40,629	4.22
Total Interest Bearing Deposits		3,412,730		131,418	3.85			3,039,326		128,805	4.24
Federal Funds Purchased		466		21	4.53			21,493		1,201	5.59
Notes Payable		8,250		624	7.57			13,750		1,162	8.45
FHLB Advances		403,411		11,465	2.84			320,497		8,554	2.67
Subordinated Debentures		95,334		5,882	6.17			79,473		3,983	5.01
Total Interest Bearing Liabilities		3,920,191		149,410	3.81	%		3,474,539		143,705	4.14	%
Noninterest Bearing Liabilities:
Noninterest Bearing Transaction Deposits		799,099						705,247
Other Noninterest Bearing Liabilities		65,435						62,595
Total Noninterest Bearing Liabilities		864,534						767,842
Shareholders' Equity		483,828						440,763
Total Liabilities and Shareholders' Equity	$	5,268,553					$	4,683,144
Net Interest Income / Interest Rate Spread				134,296	1.74	%				103,439	1.26	%
Net Interest Margin ⁽³⁾					2.63	%					2.26	%
Taxable Equivalent Adjustment:
Tax-Exempt Investment Securities and Loans				(1,858)						(1,246)
Net Interest Income			$	132,438					$	102,193

(1)			Interest income and average rates for tax-exempt investment securities and loans are presented on a tax-equivalent basis, assuming a statutory federal income tax rate of 21%.
(2)			Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.
(3)			Net interest margin includes the tax equivalent adjustment and represents the annualized results of: (i) the difference between interest income on interest earning assets and the interest expense on interest bearing liabilities, divided by (ii) average interest earning assets for the period.

Bridgewater Bancshares, Inc. and Subsidiaries
Asset Quality Summary
(unaudited)


	As of and for the Three Months Ended															As of and for the Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(dollars in thousands)	2025			2025			2025			2025			2024			2025			2024
Allowance for Credit Losses
Balance at Beginning of Period	$	56,390		$	55,765		$	53,766		$	52,277		$	51,018		$	52,277		$	50,494
Day 1 PCD Allowance		—			—			—			—			114			—			114
Provision for Credit Losses⁽¹⁾		1,250			900			2,000			1,500			1,450			5,650			2,900
Charge-offs		(1,259)			(276)			(6)			(12)			(317)			(1,553)			(1,266)
Recoveries		62			1			5			1			12			69			35
Net Charge-offs		(1,197)			(275)			(1)			(11)			(305)			(1,484)			(1,231)
Balance at End of Period	$	56,443		$	56,390		$	55,765		$	53,766		$	52,277		$	56,443		$	52,277
Allowance for Credit Losses to Total Loans		1.31	%		1.34	%		1.35	%		1.34	%		1.35	%		1.31	%		1.35	%

(1)

Includes a day 1 provision for credit losses for non-PCD loans acquired in the FMCB transaction of $950,000 for the three and twelve months ended December 31, 2024.


	As of and for the Three Months Ended										As of and for the Year Ended
	December 31,		September 30,		June 30,		March 31,		December 31,		December 31,		December 31,
(dollars in thousands)	2025		2025		2025		2025		2024		2025		2024
Provision for Credit Losses on Loans and Leases	$	1,250	$	900	$	2,000	$	1,500	$	1,450	$	5,650	$	2,900
Provision for Credit Losses for Off-Balance Sheet Credit Exposures		200		200		—		—		725		400		625
Provision for Credit Losses	$	1,450	$	1,100	$	2,000	$	1,500	$	2,175	$	6,050	$	3,525


	As of and for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)	2025			2025			2025			2025			2024
Selected Asset Quality Data
Loans 30-89 Days Past Due	$	968		$	2,906		$	12,492		$	466		$	1,291
Loans 30-89 Days Past Due to Total Loans		0.02	%		0.07	%		0.30	%		0.01	%		0.03	%
Nonperforming Loans	$	22,034		$	9,991		$	10,134		$	10,290		$	301
Nonperforming Loans to Total Loans		0.51	%		0.24	%		0.24	%		0.26	%		0.01	%
Nonaccrual Loans to Total Loans		0.51			0.24			0.24			0.26			0.01
Nonaccrual Loans and Loans Past Due 90 Days and Still Accruing to Total Loans		0.51			0.24			0.24			0.26			0.01
Foreclosed Assets	$	—		$	—		$	185		$	—		$	—
Nonperforming Assets ⁽¹⁾		22,034			9,991			10,319			10,290			301
Nonperforming Assets to Total Assets ⁽¹⁾		0.41	%		0.19	%		0.19	%		0.20	%		0.01	%
Net Loan Charge-Offs (Annualized) to Average Loans		0.11			0.03			0.00			0.00			0.03
Watchlist/Special Mention Risk Rating Loans	$	47,823		$	40,642		$	53,282		$	38,346		$	46,581
Substandard Risk Rating Loans		52,956			58,074			44,986			31,587			21,791

(1)

Nonperforming assets are defined as nonaccrual loans plus 90 days past due and still accruing plus foreclosed assets.

Bridgewater Bancshares, Inc. and Subsidiaries
Non-GAAP Financial Measures
(unaudited)


	For the Three Months Ended															For the Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(dollars in thousands)	2025			2025			2025			2025			2024			2025			2024
Pre-Provision Net Revenue
Noninterest Income	$	3,148		$	2,061		$	3,627		$	2,079		$	2,533		$	10,915		$	7,368
Less: Gain on Sales of Securities		(80)			(59)			(474)			(1)			—			(614)			(385)
Less: FHLB Advance Prepayment Income		—			—			(301)			—			—			(301)			—
Total Operating Noninterest Income		3,068			2,002			2,852			2,078			2,533			10,000			6,983
Plus: Net Interest Income		35,687			34,091			32,452			30,208			26,967			132,438			102,193
Net Operating Revenue	$	38,755		$	36,093		$	35,304		$	32,286		$	29,500		$	142,438		$	109,176

Noninterest Expense	$	20,238		$	19,956		$	18,941		$	18,136		$	16,812		$	77,271		$	63,300
Total Operating Noninterest Expense	$	20,238		$	19,956		$	18,941		$	18,136		$	16,812		$	77,271		$	63,300

Pre-Provision Net Revenue	$	18,517		$	16,137		$	16,363		$	14,150		$	12,688		$	65,167		$	45,876

Plus:
Non-Operating Revenue Adjustments		80			59			775			1			—			915			385
Less:
Provision for Credit Losses		1,450			1,100			2,000			1,500			2,175			6,050			3,525
Provision for Income Taxes		3,813			3,495			3,618			3,018			2,309			13,944			9,911
Net Income	$	13,334		$	11,601		$	11,520		$	9,633		$	8,204		$	46,088		$	32,825

Average Assets	$	5,438,555		$	5,372,443		$	5,162,182		$	5,071,446		$	4,788,036		$	5,268,553		$	4,683,144
Pre-Provision Net Revenue Return on Average Assets		1.35	%		1.19	%		1.27	%		1.13	%		1.05	%		1.24	%		0.98	%

Adjusted Pre-Provision Net Revenue
Net Operating Revenue	$	38,755		$	36,093		$	35,304		$	32,286		$	29,500		$	142,438		$	109,176

Noninterest Expense	$	20,238		$	19,956		$	18,941		$	18,136		$	16,812		$	77,271		$	63,300
Less: Merger-related Expenses		(346)			(530)			(540)			(565)			(488)			(1,981)			(712)
Adjusted Total Operating Noninterest Expense	$	19,892		$	19,426		$	18,401		$	17,571		$	16,324		$	75,290		$	62,588

Adjusted Pre-Provision Net Revenue	$	18,863		$	16,667		$	16,903		$	14,715		$	13,176		$	67,148		$	46,588
Adjusted Pre-Provision Net Revenue Return on Average Assets		1.38	%		1.23	%		1.31	%		1.18	%		1.09	%		1.27	%		0.99	%

Core Net Interest Margin
Net Interest Income (Tax-equivalent Basis)	$	36,447		$	34,614		$	32,770		$	30,464		$	27,254		$	134,296		$	103,440
Less:
Loan Fees		(1,041)			(966)			(1,019)			(719)			(747)			(3,745)			(3,090)
Purchase Accounting Accretion:
Loan Accretion		(546)			(380)			(425)			(342)			—			(1,693)			—
Bond Accretion		(33)			(89)			(152)			(578)			(91)			(852)			(91)
Bank-Owned Certificates of Deposit Accretion		(16)			(6)			(4)			(7)			—			(33)			—
Deposit Certificates of Deposit Accretion		—			(13)			(37)			(38)			—			(88)			—
Total Purchase Accounting Accretion		(595)			(488)			(618)			(965)			(91)			(2,666)			(91)
Core Net Interest Income (Tax-equivalent Basis)	$	34,811		$	33,160		$	31,133		$	28,780		$	26,416		$	127,885		$	100,259

Average Interest Earning Assets	$	5,264,700		$	5,223,139		$	5,019,058		$	4,928,283		$	4,682,841		$	5,114,143		$	4,579,597
Core Net Interest Margin		2.62	%		2.52	%		2.49	%		2.37	%		2.24	%		2.50	%		2.19	%

Core Loan Yield
Loan Interest Income (Tax-equivalent Basis)	$	61,746		$	60,317		$	58,122		$	53,979		$	52,078		$	234,164		$	205,646
Less:
Loan Fees		(1,041)			(966)			(1,019)			(719)			(747)			(3,745)			(3,090)
Loan Accretion		(546)			(380)			(425)			(342)			—			(1,693)			—
Core Loan Interest Income	$	60,159		$	58,971		$	56,678		$	52,918		$	51,331		$	228,726		$	202,556

Average Loans	$	4,239,936		$	4,132,987		$	4,064,540		$	3,899,258		$	3,730,532		$	4,088,601		$	3,738,260
Core Loan Yield		5.63	%		5.66	%		5.59	%		5.50	%		5.47	%		5.59	%		5.42	%

Bridgewater Bancshares, Inc. and Subsidiaries
Non-GAAP Financial Measures
(unaudited)


	For the Three Months Ended															For the Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(dollars in thousands)	2025			2025			2025			2025			2024			2025			2024
Efficiency Ratio
Noninterest Expense	$	20,238		$	19,956		$	18,941		$	18,136		$	16,812		$	77,271		$	63,300
Less: Amortization of Intangible Assets		(231)			(230)			(230)			(230)			(52)			(921)			(78)
Adjusted Noninterest Expense	$	20,007		$	19,726		$	18,711		$	17,906		$	16,760		$	76,350		$	63,222

Net Interest Income	$	35,687		$	34,091		$	32,452		$	30,208		$	26,967		$	132,438		$	102,193
Noninterest Income		3,148			2,061			3,627			2,079			2,533			10,915			7,368
Less: Gain on Sales of Securities		(80)			(59)			(474)			(1)			—			(614)			(385)
Adjusted Operating Revenue	$	38,755		$	36,093		$	35,605		$	32,286		$	29,500		$	142,739		$	109,176
Efficiency Ratio		51.6	%		54.7	%		52.6	%		55.5	%		56.8	%		53.5	%		57.9	%

Adjusted Efficiency Ratio
Noninterest Expense	$	20,238		$	19,956		$	18,941		$	18,136		$	16,812		$	77,271		$	63,300
Less: Amortization of Intangible Assets		(231)			(230)			(230)			(230)			(52)			(921)			(78)
Less: Merger-related Expenses		(346)			(530)			(540)			(565)			(488)			(1,981)			(712)
Adjusted Noninterest Expense	$	19,661		$	19,196		$	18,171		$	17,341		$	16,272		$	74,369		$	62,510

Net Interest Income	$	35,687		$	34,091		$	32,452		$	30,208		$	26,967		$	132,438		$	102,193
Noninterest Income		3,148			2,061			3,627			2,079			2,533			10,915			7,368
Less: Gain on Sales of Securities		(80)			(59)			(474)			(1)			—			(614)			(385)
Less: FHLB Advance Prepayment Income		—			—			(301)			—			—			(301)			—
Adjusted Operating Revenue	$	38,755		$	36,093		$	35,304		$	32,286		$	29,500		$	142,438		$	109,176
Adjusted Efficiency Ratio		50.7	%		53.2	%		51.5	%		53.7	%		55.2	%		52.2	%		57.3	%

Adjusted Noninterest Expense to Average Assets (Annualized)
Noninterest Expense	$	20,238		$	19,956		$	18,941		$	18,136		$	16,812		$	77,271		$	63,300
Less: Merger-related Expenses		(346)			(530)			(540)			(565)			(488)			(1,981)			(712)
Adjusted Noninterest Expense	$	19,892		$	19,426		$	18,401		$	17,571		$	16,324		$	75,290		$	62,588

Average Assets	$	5,438,555		$	5,372,443		$	5,162,182		$	5,071,446		$	4,788,036		$	5,268,553		$	4,683,144
Adjusted Noninterest Expense to Average Assets (Annualized)		1.45	%		1.43	%		1.43	%		1.41	%		1.36	%		1.43	%		1.34	%

Tangible Common Equity and Tangible Common Equity/Tangible Assets
Total Shareholders' Equity	$	517,095		$	497,463		$	476,282		$	468,975		$	457,935
Less: Preferred Stock		(66,514)			(66,514)			(66,514)			(66,514)			(66,514)
Total Common Shareholders' Equity		450,581			430,949			409,768			402,461			391,421
Less: Intangible Assets		(18,912)			(19,142)			(19,372)			(19,602)			(19,832)
Tangible Common Equity	$	431,669		$	411,807		$	390,396		$	382,859		$	371,589

Total Assets	$	5,407,002		$	5,359,994		$	5,296,673		$	5,136,808		$	5,066,242
Less: Intangible Assets		(18,912)			(19,142)			(19,372)			(19,602)			(19,832)
Tangible Assets	$	5,388,090		$	5,340,852		$	5,277,301		$	5,117,206		$	5,046,410
Tangible Common Equity/Tangible Assets		8.01	%		7.71	%		7.40	%		7.48	%		7.36	%

Tangible Book Value Per Share
Book Value Per Common Share	$	16.23		$	15.62		$	14.92		$	14.60		$	14.21
Less: Effects of Intangible Assets		(0.68)			(0.69)			(0.71)			(0.71)			(0.72)
Tangible Book Value Per Common Share	$	15.55		$	14.93		$	14.21		$	13.89		$	13.49

Return on Average Tangible Common Equity
Net Income Available to Common Shareholders	$	12,320		$	10,588		$	10,506		$	8,620		$	7,190		$	42,034		$	28,771

Average Shareholders' Equity	$	509,655		$	485,869		$	471,700		$	465,408		$	455,949		$	483,828		$	440,763
Less: Average Preferred Stock		(66,514)			(66,514)			(66,514)			(66,514)			(66,514)			(66,514)			(66,514)
Average Common Equity		443,141			419,355			405,186			398,894			389,435			417,314			374,249
Less: Effects of Average Intangible Assets		(19,042)			(19,274)			(19,504)			(19,738)			(4,412)			(19,387)			(3,207)
Average Tangible Common Equity	$	424,099		$	400,081		$	385,682		$	379,156		$	385,023		$	397,927		$	371,042
Return on Average Tangible Common Equity		11.53	%		10.50	%		10.93	%		9.22	%		7.43	%		10.56	%		7.75	%

Bridgewater Bancshares, Inc. and Subsidiaries
Non-GAAP Financial Measures
(unaudited)


	For the Three Months Ended															For the Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(dollars in thousands)	2025			2025			2025			2025			2024			2025			2024
Adjusted Diluted Earnings Per Common Share
Net Income Available to Common Shareholders	$	12,320		$	10,588		$	10,506		$	8,620		$	7,190		$	42,034		$	28,771

Add: Merger-related Expenses		346			530			540			565			488			1,981			712
Less: FHLB Advance Prepayment Income		—			—			(301)			—			—			(301)			—
Less: Gain on Sales of Securities		(80)			(59)			(474)			(1)			—			(614)			(385)
Total Adjustments		266			471			(235)			564			488			1,066			327
Less: Tax Impact of Adjustments		(59)			(110)			56			(135)			(107)			(247)			(76)
Adjusted Net Income Available to Common Shareholders	$	12,527		$	10,949		$	10,327		$	9,049		$	7,571		$	42,853		$	29,022

Diluted Weighted Average Shares Outstanding		28,354,756			28,190,406			27,998,008			28,036,506			28,055,532			28,169,857			27,943,343
Adjusted Diluted Earnings Per Common Share	$	0.44		$	0.39		$	0.37		$	0.32		$	0.27		$	1.52		$	1.04

Adjusted Return on Average Assets
Net Income	$	13,334		$	11,601		$	11,520		$	9,633		$	8,204		$	46,088		$	32,825
Add: Total Adjustments		266			471			(235)			564			488			1,066			327
Less: Tax Impact of Adjustments		(59)			(110)			56			(135)			(107)			(247)			(76)
Adjusted Net Income	$	13,541		$	11,962		$	11,341		$	10,062		$	8,585		$	46,907		$	33,076

Average Assets	$	5,438,555		$	5,372,443		$	5,162,182		$	5,071,446		$	4,788,036		$	5,268,553		$	4,683,144
Adjusted Return on Average Assets		0.99	%		0.88	%		0.88	%		0.80	%		0.71	%		0.89	%		0.71	%

Adjusted Return on Average Shareholders' Equity
Adjusted Net Income	$	13,541		$	11,962		$	11,341		$	10,062		$	8,585		$	46,907		$	33,076

Average Shareholders' Equity	$	509,655		$	485,869		$	471,700		$	465,408		$	455,949		$	483,828		$	440,763
Adjusted Return on Average Shareholders' Equity		10.54	%		9.77	%		9.64	%		8.77	%		7.49	%		9.69	%		7.50	%

Adjusted Return on Average Tangible Common Equity
Adjusted Net Income Available to Common Shareholders	$	12,527		$	10,949		$	10,327		$	9,049		$	7,571		$	42,853		$	29,022

Average Tangible Common Equity	$	424,099		$	400,081		$	385,682		$	379,156		$	385,023		$	397,927		$	371,042
Adjusted Return on Average Tangible Common Equity		11.72	%		10.86	%		10.74	%		9.68	%		7.82	%		10.77	%		7.82	%

Contacts

Media Contact:
Emily Karpenske | Senior Communication Specialist
Emily.Karpenske@bwbmn.com | 952.653.0624

Investor Contact:
Justin Horstman | VP Investor Relations
Justin.Horstman@bwbmn.com | 952.542.5169

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