Bridgewater Bancshares, Inc. Announces Third Quarter 2025 Financial Results

Third Quarter 2025 Highlights

• Net income of $11.6 million, or $0.38 per diluted common share; adjusted net income of $12.0 million, or $0.39 per diluted common share.⁽¹⁾
• Net interest income increased $1.6 million, or 5.1%, from the second quarter of 2025.
• Net interest margin (on a fully tax-equivalent basis) of 2.63% for the third quarter of 2025, an increase of one basis point from the second quarter of 2025.
• Gross loans increased by $68.8 million, or 6.6% annualized, from the second quarter of 2025.
• Total deposits increased by $56.0 million, or 5.2% annualized, from the second quarter of 2025; core deposits⁽²⁾ increased by $92.1 million, or 11.5% annualized, from the second quarter of 2025.
• Efficiency ratio⁽¹⁾ of 54.7%, up from 52.6% for the second quarter of 2025; adjusted efficiency ratio⁽¹⁾ of 53.2%, up from 51.5% for the second quarter of 2025.
• Annualized net loan charge-offs as a percentage of average loans of 0.03%, compared to 0.00% for the second quarter of 2025.
• Nonperforming assets to total assets of 0.19% at September 30, 2025, stable with 0.19% at June 30, 2025.
• Tangible book value per share⁽¹⁾ of $14.93 at September 30, 2025, an increase of 20.0% annualized, from the second quarter of 2025.
• Successfully completed the systems conversion of the First Minnetonka City Bank (“FMCB”) acquisition.
• Planned branch closure in December 2025 of one of the two branches acquired from FMCB in 2024.

(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.

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 $11.6 million for the third quarter of 2025, compared to $11.5 million for the second quarter of 2025, and $8.7 million for the third quarter of 2024. Earnings per diluted common share were $0.38 for the third quarter of 2025, compared to $0.38 for the second quarter of 2025, and $0.27 for the third quarter of 2024. Adjusted net income, a non-GAAP financial measure, was $12.0 million for the third quarter of 2025, compared to $11.3 million for the second quarter of 2025, and $8.9 million for the third quarter of 2024. Adjusted earnings per diluted common share, a non-GAAP financial measure, were $0.39 for the third quarter of 2025, compared to $0.37 for the second quarter of 2025, and $0.28 for the third quarter of 2024.

“Bridgewater produced another quarter of strong net interest income growth as we continued to execute on our strategic priority of gaining both loan and deposit market share,” said Chairman and Chief Executive Officer, Jerry Baack. “Robust core deposit growth supported strong loan growth during the quarter as our loan pipelines remained near three-year highs, we continued to gain traction in the affordable housing space, and talent and client opportunities from M&A disruption in the Twin Cities remained plentiful. Meanwhile, our liability-sensitive balance sheet remains well positioned to benefit from the September interest rate cut and a rates-down environment.

“The third quarter was also highlighted by strong asset quality, consistent tangible book value per share growth, the launch of a new retail and small business online banking platform, and the successful systems conversion of our recent acquisition of First Minnetonka City Bank. With a favorable outlook for continued balance sheet growth and net interest margin expansion from here, we are poised for improved profitability trends moving forward.”

Key Financial Measures

		As of and for the Three Months Ended										As of and for the Nine Months Ended
		September 30,			June 30,			September 30,				September 30,			September 30,
		2025			2025			2024				2025			2024
Per Common Share Data
Basic Earnings Per Share		$	0.38		$	0.38		$	0.28			$	1.08		$	0.79
Diluted Earnings Per Share			0.38			0.38			0.27				1.06			0.77
Adjusted Diluted Earnings Per Share (1)			0.39			0.37			0.28				1.08			0.77
Book Value Per Share			15.62			14.92			14.06				15.62			14.06
Tangible Book Value Per Share (1)			14.93			14.21			13.96				14.93			13.96
Financial Ratios
Return on Average Assets (2)			0.86	%		0.90	%		0.73	%			0.84	%		0.71	%
Pre-Provision Net Revenue Return on Average Assets (1)(2)			1.19			1.27			0.96				1.20			0.95
Return on Average Shareholders' Equity (2)			9.47			9.80			7.79				9.23			7.55
Return on Average Tangible Common Equity (1)(2)			10.50			10.93			8.16				10.23			7.87
Net Interest Margin (3)			2.63			2.62			2.24				2.59			2.24
Core Net Interest Margin (1)(3)			2.52			2.49			2.16				2.46			2.17
Cost of Total Deposits			3.19			3.16			3.58				3.18			3.45
Cost of Funds			3.25			3.19			3.54				3.20			3.46
Efficiency Ratio (1)			54.7			52.6			58.0				54.2			58.3
Noninterest Expense to Average Assets (2)			1.47			1.47			1.33				1.46			1.34
Tangible Common Equity to Tangible Assets (1)			7.71			7.40			8.17				7.71			8.17
Common Equity Tier 1 Risk-based Capital Ratio (Consolidated) (4)			9.08			9.03			9.79				9.08			9.79
Adjusted Financial Ratios (1)
Adjusted Return on Average Assets (2)			0.88	%		0.88	%		0.75	%			0.86	%		0.70	%
Adjusted Pre-Provision Net Revenue Return on Average Assets (2)			1.23			1.31			0.98				1.24			0.96
Adjusted Return on Average Shareholders' Equity (2)			9.77			9.64			7.96				9.41			7.51
Adjusted Return on Average Tangible Common Equity (2)			10.86			10.74			8.36				10.44			7.82
Adjusted Efficiency Ratio			53.2			51.5			57.2				52.8			58.0
Adjusted Noninterest Expense to Average Assets (2)			1.43			1.43			1.31				1.42			1.33
Balance Sheet and Asset Quality (dollars in thousands)
Total Assets		$	5,359,994		$	5,296,673		$	4,691,517			$	5,359,994		$	4,691,517
Total Loans, Gross			4,214,554			4,145,799			3,685,590				4,214,554			3,685,590
Deposits			4,292,764			4,236,742			3,747,442				4,292,764			3,747,442
Loan to Deposit Ratio			98.2	%		97.9	%		98.3	%			98.2	%		98.3	%
Net Loan Charge-Offs to Average Loans (2)			0.03			0.00			0.10				0.01			0.03
Nonperforming Assets to Total Assets (5)			0.19			0.19			0.19				0.19			0.19
Allowance for Credit Losses to Total Loans			1.34			1.35			1.38				1.34			1.38

____________________________
(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 third quarter of 2025 was 2.63%, a one basis point increase from 2.62% in the second quarter of 2025, and a 39 basis point increase from 2.24% in the third 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 2.52% for the third quarter of 2025, a three basis point increase from 2.49% in the second quarter of 2025, and a 36 basis point increase from 2.16% in the third quarter of 2024.

• Net interest margin expanded to 2.63% in the third quarter of 2025 primarily due to higher earning asset yields, offset partially by the subordinated debt refinance in the second quarter of 2025, higher cash balances, and declining purchase accounting accretion income.

Net interest income was $34.1 million for the third quarter of 2025, an increase of $1.6 million from $32.5 million in the second quarter of 2025, and an increase of $8.5 million from $25.6 million in the third quarter of 2024.

• The linked-quarter increase in net interest income was primarily due to growth in the loan and securities portfolios, offset partially by higher deposit balances.
• The year-over-year increase in net interest income was primarily due to growth in the loan portfolio and purchase accounting accretion, offset partially by higher deposit balances.

Interest income was $73.6 million for the third quarter of 2025, an increase of $4.4 million from $69.2 million in the second quarter of 2025, and an increase of $10.6 million from $63.0 million in the third quarter of 2024.

• The yield on interest earning assets (on a fully tax-equivalent basis) was 5.63% in the third quarter of 2025, compared to 5.56% in the second quarter of 2025, and 5.48% in the third quarter of 2024.
• The linked-quarter increase in the yield on interest earning assets was primarily due to growth and repricing of the loan and securities portfolios.
• 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 and purchase accounting accretion.
• The aggregate loan yield increased to 5.79% in the third quarter of 2025, five basis points higher than 5.74% in the second quarter of 2025, and 22 basis points higher than 5.57% in the third quarter of 2024.
• Core loan yield, a non-GAAP financial measure, increased to 5.66% in the third quarter of 2025, seven basis points higher than 5.59% in the second quarter of 2025, and 19 basis points higher than 5.47% in the third quarter of 2024.

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

		Three Months Ended
		September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
Interest		5.66	%		5.59	%		5.50	%		5.47	%		5.47	%
Fees		0.09			0.11			0.07			0.08			0.10
Accretion		0.04			0.04			0.04			—			—
Yield on Loans		5.79	%		5.74	%		5.61	%		5.55	%		5.57	%

Interest expense was $39.5 million for the third quarter of 2025, an increase of $2.8 million from $36.7 million in the second quarter of 2025, and an increase of $2.1 million from $37.4 million in the third quarter of 2024.

• The cost of interest bearing liabilities was 3.89% in the third quarter of 2025, compared to 3.83% in the second quarter of 2025, and 4.27% in the third quarter of 2024.
• The linked-quarter increase in the cost of interest bearing liabilities was primarily due to higher interest bearing deposit balances and higher balances and rates paid on subordinated debentures following the payoff of $50.0 million of outstanding subordinated notes and the issuance of $80.0 million of new subordinated notes at the end of the second quarter.
• The year-over-year decrease in the cost of interest bearing liabilities was primarily due to lower interest bearing deposit costs, offset partially by higher balances and rates paid on FHLB advances and subordinated debentures.

Interest expense on deposits was $34.6 million for the third quarter of 2025, an increase of $2.1 million from $32.5 million in the second quarter of 2025, and an increase of $428,000 from $34.2 million in the third quarter of 2024.

• The cost of total deposits was 3.19% in the third quarter of 2025, three basis points higher than 3.16% in the second quarter of 2025, and 39 basis points lower than 3.58% in the third quarter of 2024.
• The linked-quarter increase in the cost of total deposits was primarily due to time and brokered deposits repricing in the higher rate environment.
• 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 and decreases in average brokered deposit balances.

Provision for Credit Losses

The provision for credit losses on loans and leases was $900,000 for the third quarter of 2025, compared to $2.0 million for the second quarter of 2025 and $-0- for the third quarter of 2024.

• The provision for credit losses on loans recorded in the third quarter of 2025 was primarily attributable to growth in the loan portfolio and an increase in specific reserves for loans individually evaluated.
• The allowance for credit losses on loans to total loans was 1.34% at September 30, 2025, compared to 1.35% at June 30, 2025, and 1.38% at September 30, 2024.

The provision for credit losses for off-balance sheet credit exposures was $200,000 for the third quarter of 2025, and $-0- for each of the second quarter of 2025 and the third quarter of 2024.

• A provision was recorded during the third quarter of 2025 due to an increase in the volume of newly originated loans with unfunded commitments in the commercial and construction and land development segments.

Noninterest Income

Noninterest income was $2.1 million for the third quarter of 2025, a decrease of $1.6 million from $3.6 million for the second quarter of 2025, and an increase of $539,000 from $1.5 million for the third quarter of 2024.

• The linked-quarter decrease was primarily due to lower swap fees, gains on sales of securities, and FHLB prepayment income.
• The year-over-year increase was primarily due to higher investment advisory fees and customer service fees.

Noninterest Expense

Noninterest expense was $20.0 million for the third quarter of 2025, an increase of $1.0 million from $18.9 million for the second quarter of 2025 and an increase of $4.2 million from $15.8 million for the third quarter of 2024.

• Noninterest expense for the third quarter of 2025 included $530,000 of merger-related expenses associated with the acquisition of FMCB, compared to $540,000 for the second quarter of 2025.
• The linked-quarter increase was primarily due to increases in salaries and employee benefits, marketing and advertising, and professional and consulting fees.
• The year-over-year increase was primarily attributable to increases in salaries and employee benefits, marketing and advertising, operating costs related to the FMCB acquisition, and merger-related expenses.
• The efficiency ratio, a non-GAAP financial measure, was 54.7% for the third quarter of 2025, compared to 52.6% for the second quarter of 2025, and 58.0% for the third quarter of 2024.
• The Company had 325 full-time equivalent employees at September 30, 2025, compared to 308 at June 30, 2025, and 265 at September 30, 2024. The year-over-year increase was largely driven by the addition of employees from the acquisition of FMCB and the hiring of key talent across the organization.

Income Taxes

The effective combined federal and state income tax rate was 23.2% for the third quarter of 2025, compared to 23.9% for the second quarter of 2025, and 23.6% for the third quarter of 2024.

Balance Sheet

Loans

(dollars in thousands)		September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024
Commercial		$	533,476			$	549,259			$	528,801			$	497,662			$	493,403
Leases			43,186				44,817				43,958				44,291				—
Construction and Land Development			159,991				136,438				128,073				97,255				118,596
1-4 Family Construction			41,739				39,095				39,438				41,961				45,822
Real Estate Mortgage:
1 - 4 Family Mortgage			487,297				474,269				479,461				474,383				421,179
Multifamily			1,578,223				1,555,731				1,534,747				1,425,610				1,379,814
CRE Owner Occupied			192,966				192,837				196,080				191,248				182,239
CRE Nonowner Occupied			1,158,622				1,137,007				1,055,157				1,083,108				1,032,142
Total Real Estate Mortgage Loans			3,417,108				3,359,844				3,265,445				3,174,349				3,015,374
Consumer and Other			19,054				16,346				14,361				12,996				12,395
Total Loans, Gross			4,214,554				4,145,799				4,020,076				3,868,514				3,685,590
Allowance for Credit Losses on Loans			(56,390	)			(55,765	)			(53,766	)			(52,277	)			(51,018	)
Net Deferred Loan Fees			(8,282	)			(7,629	)			(7,218	)			(6,801	)			(5,705	)
Total Loans, Net		$	4,149,882			$	4,082,405			$	3,959,092			$	3,809,436			$	3,628,867

Total gross loans at September 30, 2025 were $4.21 billion, an increase of $68.8 million, or 6.6% annualized, over total gross loans of $4.15 billion at June 30, 2025, and an increase of $529.0 million, or 14.4%, over total gross loans of $3.69 billion at September 30, 2024.

• The increase in the loan portfolio during the third quarter of 2025 was due to strong loan originations and lower loan payoffs and paydowns.

Deposits

(dollars in thousands)		September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
Noninterest Bearing Transaction Deposits		$	822,632		$	787,868		$	791,528		$	800,763		$	713,309
Interest Bearing Transaction Deposits			860,774			791,748			840,378			862,242			805,756
Savings and Money Market Deposits			1,428,726			1,441,694			1,372,191			1,259,503			980,345
Time Deposits			346,214			344,882			326,821			338,506			347,080
Brokered Deposits			834,418			870,550			831,539			825,753			900,952
Total Deposits		$	4,292,764		$	4,236,742		$	4,162,457		$	4,086,767		$	3,747,442

Total deposits at September 30, 2025 were $4.29 billion, an increase of $56.0 million, or 5.2% annualized, over total deposits of $4.24 billion at June 30, 2025, and an increase of $545.3 million, or 14.6%, over total deposits of $3.75 billion at September 30, 2024.

• Core deposits, defined as total deposits excluding brokered deposits and certificates of deposits greater than $250,000, increased $92.1 million, or 11.5% annualized, from the second quarter of 2025, and increased $600.2 million, or 22.4%, from the third quarter of 2024.

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 0.03%, compared to 0.00% for the second quarter of 2025, and 0.10% for the third quarter of 2024.
• At September 30, 2025, the Company’s nonperforming assets, which include nonaccrual loans, loans past due 90 days and still accruing, and foreclosed assets, were $10.0 million, or 0.19% of total assets, compared to $10.3 million, or 0.19% of total assets, at June 30, 2025, and $8.8 million, or 0.19% of total assets, at September 30, 2024.
• Loans with potential weaknesses that warranted a watch/special mention risk rating at September 30, 2025 totaled $40.6 million, compared to $53.3 million at June 30, 2025, and $32.0 million at September 30, 2024.
• Loans that warranted a substandard risk rating at September 30, 2025 totaled $58.1 million, compared to $45.0 million at June 30, 2025, and $31.6 million at September 30, 2024.
• The linked-quarter increase in loans that warranted a substandard risk rating was primarily due to one loan that migrated from special mention to substandard.

Capital

Total shareholders’ equity at September 30, 2025 was $497.5 million, an increase of $21.2 million, or 17.6% annualized, compared to total shareholders’ equity of $476.3 million at June 30, 2025, and an increase of $45.3 million, or 10.0%, over total shareholders’ equity of $452.2 million at September 30, 2024.

• The linked-quarter 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 and 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 9.08% at September 30, 2025, compared to 9.03% at June 30, 2025, and 9.79% at September 30, 2024.
• Tangible common equity as a percentage of tangible assets, a non-GAAP financial measure, was 7.71% at September 30, 2025, compared to 7.40% at June 30, 2025, and 8.17% at September 30, 2024.

Tangible book value per share, a non-GAAP financial measure, was $14.93 as of September 30, 2025, an increase of 20.0% annualized from $14.21 as of June 30, 2025, and an increase of 6.9% from $13.96 as of September 30, 2024.

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

• The Company had $13.1 million remaining under its current share repurchase authorization at September 30, 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 December 1, 2025 to shareholders of record of the Series A Preferred Stock at the close of business on November 14, 2025.

Conference Call and Webcast

The Company will host a conference call to discuss its third quarter 2025 financial results on Wednesday, October 22, 2025 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 877-344-7529 and enter access code 1563263. The replay will be available through October 29, 2025. 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 and nine strategically located branches as of September 30, 2025, 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 the threat or implementation of new, or changes to, existing policies, regulations, regulatory and governmental agencies and executive orders, including with respect to tariffs, immigration, DEI and ESG initiatives, consumer protection, foreign policy, and tax regulations; 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, including future monetary policies of the Federal Reserve in response thereto, and possible recession; the effects of developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in several bank failures; credit risk and risks from concentrations (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 or terrorism or other adverse external events, including ongoing conflicts in the Middle East and the Russian invasion of Ukraine; 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; the effects of the current U.S. government shutdown and its impact on our customers; 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
		September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands)		2025			2025			2025			2024			2024
			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Income Statement
Net Interest Income		$	34,091		$	32,452		$	30,208		$	26,967		$	25,599
Provision for Credit Losses			1,100			2,000			1,500			2,175			—
Noninterest Income			2,061			3,627			2,079			2,533			1,522
Noninterest Expense			19,956			18,941			18,136			16,812			15,760
Net Income			11,601			11,520			9,633			8,204			8,675
Net Income Available to Common Shareholders			10,588			10,506			8,620			7,190			7,662
Per Common Share Data
Basic Earnings Per Share		$	0.38		$	0.38		$	0.31		$	0.26		$	0.28
Diluted Earnings Per Share			0.38			0.38			0.31			0.26			0.27
Adjusted Diluted Earnings Per Share (1)			0.39			0.37			0.32			0.27			0.28
Book Value Per Share			15.62			14.92			14.60			14.21			14.06
Tangible Book Value Per Share (1)			14.93			14.21			13.89			13.49			13.96
Basic Weighted Average Shares Outstanding			27,504,840			27,460,982			27,568,772			27,459,433			27,382,798
Diluted Weighted Average Shares Outstanding			28,190,406			27,998,008			28,036,506			28,055,532			27,904,910
Shares Outstanding at Period End			27,584,732			27,470,283			27,560,150			27,552,449			27,425,690
Financial Ratios
Return on Average Assets (2)			0.86	%		0.90	%		0.77	%		0.68	%		0.73	%
Pre-Provision Net Revenue Return on Average Assets (1)(2)			1.19			1.27			1.13			1.05			0.96
Return on Average Shareholders' Equity (2)			9.47			9.80			8.39			7.16			7.79
Return on Average Tangible Common Equity (1)(2)			10.50			10.93			9.22			7.43			8.16
Net Interest Margin (3)			2.63			2.62			2.51			2.32			2.24
Core Net Interest Margin (1)(3)			2.52			2.49			2.37			2.24			2.16
Cost of Total Deposits			3.19			3.16			3.18			3.40			3.58
Cost of Funds			3.25			3.19			3.17			3.38			3.54
Efficiency Ratio (1)			54.7			52.6			55.5			56.8			58.0
Noninterest Expense to Average Assets (2)			1.47			1.47			1.45			1.40			1.33
Adjusted Financial Ratios (1)
Adjusted Return on Average Assets			0.88	%		0.88	%		0.80	%		0.71	%		0.75	%
Adjusted Pre-Provision Net Revenue Return on Average Assets (2)			1.23			1.31			1.18			1.09			0.98
Adjusted Return on Average Shareholders' Equity			9.77			9.64			8.77			7.49			7.96
Adjusted Return on Average Tangible Common Equity			10.86			10.74			9.68			7.82			8.36
Adjusted Efficiency Ratio			53.2			51.5			53.7			55.2			57.2
Adjusted Noninterest Expense to Average Assets			1.43			1.43			1.41			1.36			1.31
Balance Sheet
Total Assets		$	5,359,994		$	5,296,673		$	5,136,808		$	5,066,242		$	4,691,517
Total Loans, Gross			4,214,554			4,145,799			4,020,076			3,868,514			3,685,590
Deposits			4,292,764			4,236,742			4,162,457			4,086,767			3,747,442
Total Shareholders' Equity			497,463			476,282			468,975			457,935			452,200
Loan to Deposit Ratio			98.2	%		97.9	%		96.6	%		94.7	%		98.3	%
Core Deposits to Total Deposits (4)			76.4			75.2			76.2			76.0			71.5
Asset Quality
Net Loan Charge-Offs to Average Loans (2)			0.03	%		0.00	%		0.00	%		0.03	%		0.10	%
Nonperforming Assets to Total Assets (5)			0.19			0.19			0.20			0.01			0.19
Allowance for Credit Losses to Total Loans			1.34			1.35			1.34			1.35			1.38

		As of and for the Three Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands)		2025			2025			2025			2024			2024
			(Unaudited)			(Unaudited)			(Unaudited)						(Unaudited)
Capital Ratios (Consolidated) (6)
Tier 1 Leverage Ratio			9.02	%		9.14	%		9.10	%		9.45	%		9.75	%
Common Equity Tier 1 Risk-based Capital Ratio			9.08			9.03			9.03			9.08			9.79
Tier 1 Risk-based Capital Ratio			10.52			10.51			10.55			10.64			11.44
Total Risk-based Capital Ratio			14.12			14.17			13.62			13.76			14.62
Tangible Common Equity to Tangible Assets (1)			7.71			7.40			7.48			7.36			8.17

_____________________________
(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)
		September 30,				June 30,				March 31,				December 31,				September 30,
		2025				2025				2025				2024				2024
			(Unaudited)				(Unaudited)				(Unaudited)								(Unaudited)
Assets
Cash and Cash Equivalents		$	131,818			$	217,495			$	166,205			$	229,760			$	191,859
Bank-Owned Certificates of Deposit			3,658				3,897				4,139				4,377				—
Securities Available for Sale, at Fair Value			826,473				743,889				764,626				768,247				664,715
Loans, Net of Allowance for Credit Losses			4,149,882				4,082,405				3,959,092				3,809,436				3,628,867
Federal Home Loan Bank (FHLB) Stock, at Cost			21,373				21,472				18,984				19,297				18,626
Premises and Equipment, Net			50,955				49,979				49,442				49,533				47,777
Foreclosed Assets			—				185				—				—				434
Accrued Interest			19,244				17,711				17,700				17,711				16,750
Goodwill			11,982				11,982				11,982				11,982				2,626
Other Intangible Assets, Net			7,160				7,390				7,620				7,850				163
Bank-Owned Life Insurance			46,121				45,413				45,025				44,646				38,219
Other Assets			91,328				94,855				91,993				103,403				81,481
Total Assets		$	5,359,994			$	5,296,673			$	5,136,808			$	5,066,242			$	4,691,517
Liabilities and Equity
Liabilities
Deposits:
Noninterest Bearing		$	822,632			$	787,868			$	791,528			$	800,763			$	713,309
Interest Bearing			3,470,132				3,448,874				3,370,929				3,286,004				3,034,133
Total Deposits			4,292,764				4,236,742				4,162,457				4,086,767				3,747,442
Notes Payable			—				13,750				13,750				13,750				13,750
FHLB Advances			404,500				404,500				349,500				359,500				349,500
Subordinated Debentures, Net of Issuance Costs			108,588				108,689				79,766				79,670				79,574
Accrued Interest Payable			5,208				4,110				4,525				4,008				3,458
Other Liabilities			51,471				52,600				57,835				64,612				45,593
Total Liabilities			4,862,531				4,820,391				4,667,833				4,608,307				4,239,317
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 September 30, 2025 (unaudited), June 30, 2025 (unaudited), March 31, 2025 (unaudited), December 31, 2024, and September 30, 2024 (unaudited)			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 27,584,732 at September 30, 2025 (unaudited), 27,470,283 at June 30, 2025 (unaudited), 27,560,150 at March 31, 2025 (unaudited), 27,552,449 at December 31, 2024, and 27,425,690 at September 30, 2024 (unaudited)			276				275				276				276				274
Additional Paid-In Capital			97,101				95,174				95,503				95,088				94,597
Retained Earnings			339,135				328,547				318,041				309,421				302,231
Accumulated Other Comprehensive Loss			(5,563	)			(14,228	)			(11,359	)			(13,364	)			(11,416	)
Total Shareholders' Equity			497,463				476,282				468,975				457,935				452,200
Total Liabilities and Equity		$	5,359,994			$	5,296,673			$	5,136,808			$	5,066,242			$	4,691,517

Bridgewater Bancshares, Inc. and Subsidiaries Consolidated Statements of Income (dollars in thousands, except per share data)
		Three Months Ended																				Nine Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
		2025				2025				2025				2024				2024				2025				2024
			(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Interest Income
Loans, Including Fees		$	60,038			$	57,888			$	53,820			$	51,870			$	51,895			$	171,746			$	152,861
Investment Securities			10,371				9,200				9,397				9,109				8,725				28,968				24,818
Other			3,224				2,110				2,491				2,345				2,407				7,825				4,895
Total Interest Income			73,633				69,198				65,708				63,324				63,027				208,539				182,574
Interest Expense
Deposits			34,615				32,497				32,103				32,810				34,187				99,215				95,995
Federal Funds Purchased			—				16				—				42				2				16				1,159
Notes Payable			106				260				258				275				296				624				887
FHLB Advances			2,933				2,852				2,156				2,229				1,942				7,941				6,325
Subordinated Debentures			1,888				1,121				983				1,001				1,001				3,992				2,982
Total Interest Expense			39,542				36,746				35,500				36,357				37,428				111,788				107,348
Net Interest Income			34,091				32,452				30,208				26,967				25,599				96,751				75,226
Provision for Credit Losses			1,100				2,000				1,500				2,175				—				4,600				1,350
Net Interest Income After Provision for Credit Losses			32,991				30,452				28,708				24,792				25,599				92,151				73,876
Noninterest Income
Customer Service Fees			501				496				495				394				373				1,492				1,081
Net Gain (Loss) on Sales of Securities			59				474				1				—				(28	)			534				385
Net Gain on Sales of Foreclosed Assets			—				—				—				62				—				—				—
Letter of Credit Fees			383				323				455				849				424				1,161				1,127
Debit Card Interchange Fees			173				152				137				145				152				462				448
Swap Fees			—				938				42				521				26				980				26
Bank-Owned Life Insurance			440				387				379				362				352				1,206				965
Investment Advisory Fees			208				213				325				—				—				746				—
FHLB Prepayment Income			—				301				—				—				—				301				—
Other Income			297				343				245				200				223				885				803
Total Noninterest Income			2,061				3,627				2,079				2,533				1,522				7,767				4,835
Noninterest Expense
Salaries and Employee Benefits			12,229				11,363				11,371				10,605				9,851				34,963				28,959
Occupancy and Equipment			1,266				1,274				1,234				1,181				1,069				3,774				3,218
FDIC Insurance Assessment			775				750				450				609				750				1,975				2,350
Data Processing			637				625				619				445				368				1,881				1,252
Professional and Consulting Fees			1,261				1,110				994				989				1,149				3,365				2,890
Derivative Collateral Fees			309				372				451				426				381				1,132				1,395
Information Technology and Telecommunications			973				971				971				877				840				2,915				2,448
Marketing and Advertising			658				435				327				479				367				1,420				1,006
Intangible Asset Amortization			230				230				230				52				9				690				26
Other Expense			1,618				1,811				1,489				1,149				976				4,918				2,944
Total Noninterest Expense			19,956				18,941				18,136				16,812				15,760				57,033				46,488
Income Before Income Taxes			15,096				15,138				12,651				10,513				11,361				42,885				32,223
Provision for Income Taxes			3,495				3,618				3,018				2,309				2,686				10,131				7,602
Net Income			11,601				11,520				9,633				8,204				8,675				32,754				24,621
Preferred Stock Dividends			(1,013	)			(1,014	)			(1,013	)			(1,014	)			(1,013	)			(3,040	)			(3,040	)
Net Income Available to Common Shareholders		$	10,588			$	10,506			$	8,620			$	7,190			$	7,662			$	29,714			$	21,581
Earnings Per Share
Basic		$	0.38			$	0.38			$	0.31			$	0.26			$	0.28			$	1.08			$	0.79
Diluted			0.38				0.38				0.31				0.26				0.27				1.06				0.77

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
		September 30, 2025									June 30, 2025									September 30, 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		$	256,174		$	2,732			4.23	%	$	166,164		$	1,681			4.06	%	$	157,114		$	1,971			4.99	%
Investment Securities:
Taxable Investment Securities			730,643			9,448			5.13			734,998			8,883			4.85			668,429			8,406			5.00
Tax-Exempt Investment Securities (1)			81,962			1,168			5.66			31,940			401			5.04			31,496			402			5.08
Total Investment Securities			812,605			10,616			5.18			766,938			9,284			4.86			699,925			8,808			5.01
Loans (1)(2)			4,132,987			60,317			5.79			4,064,540			58,122			5.74			3,721,654			52,118			5.57
Federal Home Loan Bank Stock			21,373			492			9.12			21,416			429			8.03			16,828			436			10.31
Total Interest Earning Assets			5,223,139			74,157			5.63	%		5,019,058			69,516			5.56	%		4,595,521			63,333			5.48	%
Noninterest Earning Assets			149,304									143,124									108,283
Total Assets		$	5,372,443								$	5,162,182								$	4,703,804
Interest Bearing Liabilities:
Deposits:
Interest Bearing Transaction Deposits		$	843,905		$	8,037			3.78	%	$	813,906		$	7,769			3.83	%	$	804,161		$	9,369			4.63	%
Savings and Money Market Deposits			1,473,465			13,465			3.63			1,370,831			12,692			3.71			939,665			10,262			4.34
Time Deposits			342,926			3,703			4.28			326,024			3,268			4.02			355,050			3,918			4.39
Brokered Deposits			856,516			9,410			4.36			833,629			8,768			4.22			989,712			10,638			4.28
Total Interest Bearing Deposits			3,516,812			34,615			3.90			3,344,390			32,497			3.90			3,088,588			34,187			4.40
Federal Funds Purchased			—			—			—			1,369			16			4.64			141			2			5.72
Notes Payable			5,679			106			7.40			13,750			260			7.58			13,750			296			8.58
FHLB Advances			404,500			2,933			2.88			404,473			2,852			2.83			309,120			1,942			2.50
Subordinated Debentures			108,639			1,888			6.89			83,892			1,121			5.36			79,519			1,001			5.01
Total Interest Bearing Liabilities			4,035,630			39,542			3.89	%		3,847,874			36,746			3.83	%		3,491,118			37,428			4.27	%
Noninterest Bearing Liabilities:
Noninterest Bearing Transaction Deposits			793,760									774,424									710,192
Other Noninterest Bearing Liabilities			57,184									68,184									59,417
Total Noninterest Bearing Liabilities			850,944									842,608									769,609
Shareholders' Equity			485,869									471,700									443,077
Total Liabilities and Shareholders' Equity		$	5,372,443								$	5,162,182								$	4,703,804
Net Interest Income / Interest Rate Spread						34,615			1.74	%					32,770			1.73	%					25,905			1.21	%
Net Interest Margin (3)									2.63	%								2.62	%								2.24	%
Taxable Equivalent Adjustment:
Tax-Exempt Investment Securities and Loans						(524	)								(318	)								(306	)
Net Interest Income					$	34,091								$	32,452								$	25,599

___________________________
(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 Nine Months Ended
		September 30, 2025									September 30, 2024
		Average			Interest				Yield/		Average			Interest				Yield/
(dollars in thousands)		Balance			& Fees				Rate		Balance			& Fees				Rate
Interest Earning Assets:
Cash Investments		$	210,525		$	6,469			4.11	%	$	104,831		$	3,722			4.74	%
Investment Securities:
Taxable Investment Securities			744,605			27,364			4.91			649,538			23,867			4.91
Tax-Exempt Investment Securities (1)			49,987			2,030			5.43			31,597			1,203			5.09
Total Investment Securities			794,592			29,394			4.95			681,135			25,070			4.92
Loans (1)(2)			4,034,656			172,418			5.71			3,740,855			153,568			5.48
Federal Home Loan Bank Stock			20,601			1,356			8.80			18,111			1,173			8.65
Total Interest Earning Assets			5,060,374			209,637			5.54	%		4,544,932			183,533			5.39	%
Noninterest Earning Assets			145,373									102,993
Total Assets		$	5,205,747								$	4,647,925
Interest Bearing Liabilities:
Deposits:
Interest Bearing Transaction Deposits		$	837,504		$	23,995			3.83	%	$	757,409		$	25,332			4.47	%
Savings and Money Market Deposits			1,383,876			38,092			3.68			917,051			28,502			4.15
Time Deposits			333,199			10,280			4.13			344,484			10,935			4.24
Brokered Deposits			841,750			26,848			4.26			993,445			31,226			4.20
Total Interest Bearing Deposits			3,396,329			99,215			3.91			3,012,389			95,995			4.26
Federal Funds Purchased			456			16			4.64			27,605			1,159			5.61
Notes Payable			11,030			624			7.57			13,750			887			8.62
FHLB Advances			388,026			7,941			2.74			311,380			6,325			2.71
Subordinated Debentures			90,853			3,992			5.87			79,424			2,982			5.02
Total Interest Bearing Liabilities			3,886,694			111,788			3.85	%		3,444,548			107,348			4.16	%
Noninterest Bearing Liabilities:
Noninterest Bearing Transaction Deposits			779,897									700,308
Other Noninterest Bearing Liabilities			64,878									67,405
Total Noninterest Bearing Liabilities			844,775									767,713
Shareholders' Equity			474,278									435,664
Total Liabilities and Shareholders' Equity		$	5,205,747								$	4,647,925
Net Interest Income / Interest Rate Spread						97,849			1.69	%					76,185			1.23	%
Net Interest Margin (3)									2.59	%								2.24	%
Taxable Equivalent Adjustment:
Tax-Exempt Investment Securities and Loans						(1,098	)								(959	)
Net Interest Income					$	96,751								$	75,226

Bridgewater Bancshares, Inc. and Subsidiaries Asset Quality Summary (unaudited)
		As of and for the Three Months Ended																				As of and for the Nine Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
(dollars in thousands)		2025				2025				2025				2024				2024				2025				2024
Allowance for Credit Losses
Balance at Beginning of Period		$	55,765			$	53,766			$	52,277			$	51,018			$	51,949			$	52,277			$	50,494
Day 1 PCD Allowance			—				—				—				114				—				—				—
Provision for Credit Losses(1)			900				2,000				1,500				1,450				—				4,400				1,450
Charge-offs			(276	)			(6	)			(12	)			(317	)			(937	)			(294	)			(949	)
Recoveries			1				5				1				12				6				7				23
Net Charge-offs		$	(275	)		$	(1	)		$	(11	)		$	(305	)		$	(931	)		$	(287	)		$	(926	)
Balance at End of Period			56,390				55,765				53,766				52,277				51,018				56,390				51,018
Allowance for Credit Losses to Total Loans			1.34		%		1.35		%		1.34		%		1.35		%		1.38		%		1.34		%		1.38		%

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

		As of and for the Three Months Ended															As of and for the Nine Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(dollars in thousands)		2025			2025			2025			2024			2024			2025			2024
Provision for Credit Losses on Loans and Leases		$	900		$	2,000		$	1,500		$	1,450		$	—		$	4,400		$	1,450
Provision for (Recovery of) Credit Losses for Off-Balance Sheet Credit Exposures			200			—			—			725			—			200			(100	)
Provision for Credit Losses		$	1,100		$	2,000		$	1,500		$	2,175		$	—		$	4,600		$	1,350

		As of and for the Three Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands)		2025			2025			2025			2024			2024
Selected Asset Quality Data
Loans 30-89 Days Past Due		$	2,906		$	12,492		$	466		$	1,291		$	65
Loans 30-89 Days Past Due to Total Loans			0.07	%		0.30	%		0.01	%		0.03	%		0.00	%
Nonperforming Loans		$	9,991		$	10,134		$	10,290		$	301		$	8,378
Nonperforming Loans to Total Loans			0.24	%		0.24	%		0.26	%		0.01	%		0.23	%
Nonaccrual Loans to Total Loans			0.24			0.24			0.26			0.01			0.23
Nonaccrual Loans and Loans Past Due 90 Days and Still Accruing to Total Loans			0.24			0.24			0.26			0.01			0.23
Foreclosed Assets		$	—		$	185		$	—		$	—		$	434
Nonperforming Assets (1)			9,991			10,319			10,290			301			8,812
Nonperforming Assets to Total Assets (1)			0.19	%		0.19	%		0.20	%		0.01	%		0.19	%
Net Loan Charge-Offs (Annualized) to Average Loans			0.03			0.00			0.00			0.03			0.10
Watchlist/Special Mention Risk Rating Loans		$	40,642		$	53,282		$	38,346		$	46,581		$	31,991
Substandard Risk Rating Loans			58,074			44,986			31,587			21,791			31,637

_________________________
(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 Nine Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
(dollars in thousands)		2025				2025				2025				2024				2024				2025				2024
Pre-Provision Net Revenue
Noninterest Income		$	2,061			$	3,627			$	2,079			$	2,533			$	1,522			$	7,767			$	4,835
Less: (Gain) Loss on Sales of Securities			(59	)			(474	)			(1	)			—				28				(534	)			(385	)
Less: FHLB Advance Prepayment Income			—				(301	)			—				—				—				(301	)			—
Total Operating Noninterest Income			2,002				2,852				2,078				2,533				1,550				6,932				4,450
Plus: Net Interest Income			34,091				32,452				30,208				26,967				25,599				96,751				75,226
Net Operating Revenue		$	36,093			$	35,304			$	32,286			$	29,500			$	27,149			$	103,683			$	79,676
Noninterest Expense		$	19,956			$	18,941			$	18,136			$	16,812			$	15,760			$	57,033			$	46,488
Total Operating Noninterest Expense		$	19,956			$	18,941			$	18,136			$	16,812			$	15,760			$	57,033			$	46,488
Pre-Provision Net Revenue		$	16,137			$	16,363			$	14,150			$	12,688			$	11,389			$	46,650			$	33,188
Plus:
Non-Operating Revenue Adjustments			59				775				1				—				(28	)			835				385
Less:
Provision for Credit Losses			1,100				2,000				1,500				2,175				—				4,600				1,350
Provision for Income Taxes			3,495				3,618				3,018				2,309				2,686				10,131				7,602
Net Income		$	11,601			$	11,520			$	9,633			$	8,204			$	8,675			$	32,754			$	24,621
Average Assets		$	5,372,443			$	5,162,182			$	5,071,446			$	4,788,036			$	4,703,804			$	5,205,747			$	4,647,925
Pre-Provision Net Revenue Return on Average Assets			1.19		%		1.27		%		1.13		%		1.05		%		0.96		%		1.20		%		0.95		%
Adjusted Pre-Provision Net Revenue
Net Operating Revenue		$	36,093			$	35,304			$	32,286			$	29,500			$	27,149			$	103,683			$	79,676
Noninterest Expense		$	19,956			$	18,941			$	18,136			$	16,812			$	15,760			$	57,033			$	46,488
Less: Merger-related Expenses			(530	)			(540	)			(565	)			(488	)			(224	)			(1,635	)			(224	)
Adjusted Total Operating Noninterest Expense		$	19,426			$	18,401			$	17,571			$	16,324			$	15,536			$	55,398			$	46,264
Adjusted Pre-Provision Net Revenue		$	16,667			$	16,903			$	14,715			$	13,176			$	11,613			$	48,285			$	33,412
Adjusted Pre-Provision Net Revenue Return on Average Assets			1.23		%		1.31		%		1.18		%		1.09		%		0.98		%		1.24		%		0.96		%
Core Net Interest Margin
Net Interest Income (Tax-equivalent Basis)		$	34,614			$	32,770			$	30,464			$	27,254			$	25,905			$	97,848			$	76,185
Less:
Loan Fees			(966	)			(1,019	)			(719	)			(747	)			(968	)			(2,704	)			(2,342	)
Purchase Accounting Accretion:
Loan Accretion			(380	)			(425	)			(342	)			—				—				(1,147	)			—
Bond Accretion			(89	)			(152	)			(578	)			(91	)			—				(819	)			—
Bank-Owned Certificates of Deposit Accretion			(6	)			(4	)			(7	)			—				—				(17	)			—
Deposit Certificates of Deposit Accretion			(13	)			(37	)			(38	)			—				—				(88	)			—
Total Purchase Accounting Accretion			(488	)			(618	)			(965	)			(91	)			—				(2,071	)			—
Core Net Interest Income (Tax-equivalent Basis)		$	33,160			$	31,133			$	28,780			$	26,416			$	24,937			$	93,073			$	73,843
Average Interest Earning Assets		$	5,223,139			$	5,019,058			$	4,928,283			$	4,682,841			$	4,595,521			$	5,060,374			$	4,544,932
Core Net Interest Margin			2.52		%		2.49		%		2.37		%		2.24		%		2.16		%		2.46		%		2.17		%
Core Loan Yield
Loan Interest Income (Tax-equivalent Basis)		$	60,317			$	58,122			$	53,979			$	52,078			$	52,118			$	172,418			$	153,567
Less:
Loan Fees			(966	)			(1,019	)			(719	)			(747	)			(968	)			(2,704	)			(2,342	)
Loan Accretion			(380	)			(425	)			(342	)			—				—				(1,147	)			—
Core Loan Interest Income		$	58,971			$	56,678			$	52,918			$	51,331			$	51,150			$	168,567			$	151,225
Average Loans		$	4,132,987			$	4,064,540			$	3,899,258			$	3,730,532			$	3,721,654			$	4,034,656			$	3,740,855
Core Loan Yield			5.66		%		5.59		%		5.50		%		5.47		%		5.47		%		5.59		%		5.40		%

Bridgewater Bancshares, Inc. and Subsidiaries Non-GAAP Financial Measures (unaudited)
		For the Three Months Ended																				For the Nine Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
(dollars in thousands)		2025				2025				2025				2024				2024				2025				2024
Efficiency Ratio
Noninterest Expense		$	19,956			$	18,941			$	18,136			$	16,812			$	15,760			$	57,033			$	46,488
Less: Amortization of Intangible Assets			(230	)			(230	)			(230	)			(52	)			(9	)			(690	)			(26	)
Adjusted Noninterest Expense		$	19,726			$	18,711			$	17,906			$	16,760			$	15,751			$	56,343			$	46,462
Net Interest Income		$	34,091			$	32,452			$	30,208			$	26,967			$	25,599			$	96,751			$	75,226
Noninterest Income			2,061				3,627				2,079				2,533				1,522				7,767				4,835
Less: (Gain) Loss on Sales of Securities			(59	)			(474	)			(1	)			—				28				(534	)			(385	)
Adjusted Operating Revenue		$	36,093			$	35,605			$	32,286			$	29,500			$	27,149			$	103,984			$	79,676
Efficiency Ratio			54.7		%		52.6		%		55.5		%		56.8		%		58.0		%		54.2		%		58.3		%
Adjusted Efficiency Ratio
Noninterest Expense		$	19,956			$	18,941			$	18,136			$	16,812			$	15,760			$	57,033			$	46,488
Less: Amortization of Intangible Assets			(230	)			(230	)			(230	)			(52	)			(9	)			(690	)			(26	)
Less: Merger-related Expenses			(530	)			(540	)			(565	)			(488	)			(224	)			(1,635	)			(224	)
Adjusted Noninterest Expense		$	19,196			$	18,171			$	17,341			$	16,272			$	15,527			$	54,708			$	46,238
Net Interest Income		$	34,091			$	32,452			$	30,208			$	26,967			$	25,599			$	96,751			$	75,226
Noninterest Income			2,061				3,627				2,079				2,533				1,522				7,767				4,835
Less: (Gain) Loss on Sales of Securities			(59	)			(474	)			(1	)			—				28				(534	)			(385	)
Less: FHLB Advance Prepayment Income			—				(301	)			—				—				—				(301	)			—
Adjusted Operating Revenue		$	36,093			$	35,304			$	32,286			$	29,500			$	27,149			$	103,683			$	79,676
Adjusted Efficiency Ratio			53.2		%		51.5		%		53.7		%		55.2		%		57.2		%		52.8		%		58.0		%
Adjusted Noninterest Expense to Average Assets (Annualized)
Noninterest Expense		$	19,956			$	18,941			$	18,136			$	16,812			$	15,760			$	57,033			$	46,488
Less: Merger-related Expenses			(530	)			(540	)			(565	)			(488	)			(224	)			(1,635	)			(224	)
Adjusted Noninterest Expense		$	19,426			$	18,401			$	17,571			$	16,324			$	15,536			$	55,398			$	46,264
Average Assets		$	5,372,443			$	5,162,182			$	5,071,446			$	4,788,036			$	4,703,804			$	5,205,747			$	4,647,925
Adjusted Noninterest Expense to Average Assets (Annualized)			1.43		%		1.43		%		1.41		%		1.36		%		1.31		%		1.42		%		1.33		%
Tangible Common Equity and Tangible Common Equity/Tangible Assets
Total Shareholders' Equity		$	497,463			$	476,282			$	468,975			$	457,935			$	452,200
Less: Preferred Stock			(66,514	)			(66,514	)			(66,514	)			(66,514	)			(66,514	)
Total Common Shareholders' Equity			430,949				409,768				402,461				391,421				385,686
Less: Intangible Assets			(19,142	)			(19,372	)			(19,602	)			(19,832	)			(2,789	)
Tangible Common Equity		$	411,807			$	390,396			$	382,859			$	371,589			$	382,897
Total Assets		$	5,359,994			$	5,296,673			$	5,136,808			$	5,066,242			$	4,691,517
Less: Intangible Assets			(19,142	)			(19,372	)			(19,602	)			(19,832	)			(2,789	)
Tangible Assets		$	5,340,852			$	5,277,301			$	5,117,206			$	5,046,410			$	4,688,728
Tangible Common Equity/Tangible Assets			7.71		%		7.40		%		7.48		%		7.36		%		8.17		%
Tangible Book Value Per Share
Book Value Per Common Share		$	15.62			$	14.92			$	14.60			$	14.21			$	14.06
Less: Effects of Intangible Assets			(0.69	)			(0.71	)			(0.71	)			(0.72	)			(0.10	)
Tangible Book Value Per Common Share		$	14.93			$	14.21			$	13.89			$	13.49			$	13.96
Return on Average Tangible Common Equity
Net Income Available to Common Shareholders		$	10,588			$	10,506			$	8,620			$	7,190			$	7,662			$	29,714			$	21,581
Average Shareholders' Equity		$	485,869			$	471,700			$	465,408			$	455,949			$	443,077			$	474,278			$	435,664
Less: Average Preferred Stock			(66,514	)			(66,514	)			(66,514	)			(66,514	)			(66,514	)			(66,514	)			(66,514	)
Average Common Equity			419,355				405,186				398,894				389,435				376,563				407,764				369,150
Less: Effects of Average Intangible Assets			(19,274	)			(19,504	)			(19,738	)			(4,412	)			(2,794	)			(19,504	)			(2,802	)
Average Tangible Common Equity		$	400,081			$	385,682			$	379,156			$	385,023			$	373,769			$	388,260			$	366,348
Return on Average Tangible Common Equity			10.50		%		10.93		%		9.22		%		7.43		%		8.16		%		10.23		%		7.87		%

Bridgewater Bancshares, Inc. and Subsidiaries Non-GAAP Financial Measures (unaudited)
		For the Three Months Ended																				For the Nine Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
(dollars in thousands)		2025				2025				2025				2024				2024				2025				2024
Adjusted Diluted Earnings Per Common Share
Net Income Available to Common Shareholders		$	10,588			$	10,506			$	8,620			$	7,190			$	7,662			$	29,714			$	21,581
Add: Merger-related Expenses			530				540				565				488				224				1,635				224
Less: FHLB Advance Prepayment Income			—				(301	)			—				—				—				(301	)			—
Less: (Gain) Loss on Sales of Securities			(59	)			(474	)			(1	)			—				28				(534	)			(385	)
Total Adjustments			471				(235	)			564				488				252				800				(161	)
Less: Tax Impact of Adjustments			(110	)			56				(135	)			(107	)			(59	)			(189	)			38
Adjusted Net Income Available to Common Shareholders		$	10,949			$	10,327			$	9,049			$	7,571			$	7,855			$	30,325			$	21,458
Diluted Weighted Average Shares Outstanding			28,190,406				27,998,008				28,036,506				28,055,532				27,904,910				28,089,409				27,919,784
Adjusted Diluted Earnings Per Common Share		$	0.39			$	0.37			$	0.32			$	0.27			$	0.28			$	1.08			$	0.77
Adjusted Return on Average Assets
Net Income		$	11,601			$	11,520			$	9,633			$	8,204			$	8,675			$	32,754			$	24,621
Add: Total Adjustments			471				(235	)			564				488				252				800				(161	)
Less: Tax Impact of Adjustments			(110	)			56				(135	)			(107	)			(59	)			(189	)			38
Adjusted Net Income		$	11,962			$	11,341			$	10,062			$	8,585			$	8,868			$	33,365			$	24,498
Average Assets		$	5,372,443			$	5,162,182			$	5,071,446			$	4,788,036			$	4,703,804			$	5,205,747			$	4,647,925
Adjusted Return on Average Assets			0.88		%		0.88		%		0.80		%		0.71		%		0.75		%		0.86		%		0.70		%
Adjusted Return on Average Shareholders' Equity
Adjusted Net Income		$	11,962			$	11,341			$	10,062			$	8,585			$	8,868			$	33,365			$	24,498
Average Shareholders' Equity		$	485,869			$	471,700			$	465,408			$	455,949			$	443,077			$	474,278			$	435,664
Adjusted Return on Average Shareholders' Equity			9.77		%		9.64		%		8.77		%		7.49		%		7.96		%		9.41		%		7.51		%
Adjusted Return on Average Tangible Common Equity
Adjusted Net Income Available to Common Shareholders		$	10,949			$	10,327			$	9,049			$	7,571			$	7,855			$	30,325			$	21,458
Average Tangible Common Equity		$	400,081			$	385,682			$	379,156			$	385,023			$	373,769			$	388,260			$	366,348
Adjusted Return on Average Tangible Common Equity			10.86		%		10.74		%		9.68		%		7.82		%		8.36		%		10.44		%		7.82		%

 

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Emily Karpenske | Senior Communication Specialist

Emily.Karpenske@bwbmn.com | 952.653.0624

Investor Contact:

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Justin.Horstman@bwbmn.com | 952.542.5169

Source: Bridgewater Bancshares, Inc.