Bridgewater Bancshares (BWB) investor relations material

Company overview and market position

• Operates a branch-light model in the Twin Cities with $5.4B in assets, $4.4B in loans, and $4.3B in deposits as of June 30, 2026.

• Focuses on commercial clients, especially in CRE and multifamily lending, with a growing emphasis on affordable housing.

• Second largest locally-led bank in the Twin Cities, benefiting from market disruption and local bank acquisitions.

• Consistently outpaces local deposit growth, maintaining strong relationships and a reputation for responsive service.

• Recognized as a top workplace and for community impact, with a strong culture and leadership alignment.

Financial performance and growth

• Demonstrates robust organic asset growth (18% CAGR since 2015), supplemented by strategic M&A, including the 2024 acquisition of First Minnetonka City Bank.

• Loan portfolio grew at a 6% CAGR, with 7% YoY growth and a focus on aligning loan and core deposit growth.

• Core deposits grew at a 7% CAGR, with recent YoY growth tracking loan growth; supplemented by wholesale funding as needed.

• Revenue model is spread-based, with net interest income comprising 94% of total revenue in 2Q26; recent increases in fee income from swaps and advisory services.

• Net interest margin expanded by 8 bps in 2Q26, with continued growth expected.

Portfolio composition and risk management

• Loan portfolio is well-diversified: 38% multifamily, 31% CRE, 13% C&I, with intentional shift toward multifamily and affordable housing.

• Multifamily lending is a core strength, with low historical losses and 31% of the multifamily portfolio in affordable housing.

• Affordable housing portfolio grew 22% YoY, with 67% in Minnesota and 33% out-of-state.

• Strong credit culture with consistent underwriting, active oversight, and a five-year peak annual net charge-off ratio of 0.04% vs. 0.19% for peers.

• Asset quality remains strong, with low nonperforming assets and well-reserved allowance for credit losses.