Bridgewater Bancshares Inc (BWB)
NASDAQ:BWB
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Bridgewater Bancshares
(NASDAQ:BWB)
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Rating:70Outperform
Price Target:
$20.00
▲(4.38% Upside)
Action:ReiteratedDate:05/04/26
BWB scores well on improving financial performance (better profitability, moderating leverage) and an attractive P/E, supported by a constructive earnings call highlighting NIM expansion, solid credit quality, and stronger capital. The main offsets are mixed/neutral technical momentum and the financial watch-item of choppy cash-flow conversion versus earnings.
Positive Factors
Asset Quality
Very low NPAs and minimal annualized net charge-offs, with a 1.31% allowance, signal conservative underwriting and well-positioned reserves. This reduces the likelihood of material credit-related earnings shocks, frees capital for lending, and supports durable profitability and regulatory resilience over the medium term.
Negative Factors
Deposit Funding Dependence
Management’s loan growth targets rely heavily on continued core deposit momentum and a 95%–105% loan-to-deposit range. If deposit growth slows or competition forces higher deposit pricing, the bank may need wholesale funding or securities sales, constraining durable loan origination and margin stability.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset Quality
Very low NPAs and minimal annualized net charge-offs, with a 1.31% allowance, signal conservative underwriting and well-positioned reserves. This reduces the likelihood of material credit-related earnings shocks, frees capital for lending, and supports durable profitability and regulatory resilience over the medium term.
Read all positive factors
Bridgewater Bancshares (BWB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$510.45M
Dividend YieldN/A
Average Volume (3M)87.55K
Price to Earnings (P/E)7.1
Beta (1Y)1.01
Revenue Growth17.01%
EPS Growth61.90%
CountryUS
Employees292
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.81
Shares Outstanding27,832,867
10 Day Avg. Volume112,842
30 Day Avg. Volume87,551
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)0.93
Price to Sales (P/S)1.65
P/FCF Ratio21.85
Enterprise Value/Market Cap1.42
Enterprise Value/Revenue2.38
Enterprise Value/Gross Profit4.75
Enterprise Value/Ebitda9.84
Forecast
1Y Price Target
$23.00Price Target Upside20.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.87
Revenue Forecast (FY)$170.90M
Bridgewater Bancshares Business Overview & Revenue Model
Company Description
Bridgewater Bancshares, Inc. operates as the bank holding company for Bridgewater Bank that provides banking products and services to commercial real estate investors, small business entrepreneurs, and high net worth individuals in the United Stat...
How the Company Makes Money
Bridgewater Bancshares makes money primarily through its banking subsidiary by generating (1) net interest income and (2) noninterest income. Net interest income is earned on the spread between interest and fees collected on loans and other intere...
Bridgewater Bancshares Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call emphasized strong first-quarter execution: notable net interest margin expansion (to 2.99%), net interest income growth (+3% QoQ), loan growth (5.5% annualized), core deposit momentum (+3.2% annualized), realized securities gains ($7.3M pretax) and improved capital/tangible book value. Asset quality metrics were strong (NPAs 0.22%, NCOs 0.05%), and fee income diversification and strategic hires support future growth. Offsetting items were a smaller average earning asset base after opportunistic securities sales (‑$185M), a $982k prepayment expense, elevated near-term expenses from hires and branch opening, competitive pressure tightening spreads, and management signaling that margin expansion is likely to be gradual going forward. Overall, positives materially outweigh the manageable negatives, indicating constructive momentum heading into 2026.Positive Updates
Net Interest Margin Expansion
Net interest margin expanded 24 basis points quarter-over-quarter to 2.99% (nearly reaching the 3.0% year-end target), driven by lower deposit costs and higher loan repricing.
Negative Updates
Balance Sheet Contraction — Lower Average Earning Assets
Average interest-earning assets declined by $185 million in the quarter due to the securities sales and FHLB prepayments, reducing the earning asset base that supports NII growth despite margin expansion.
Read all updates
Q1-2026 Updates
Positive
Negative
Net Interest Margin Expansion
Net interest margin expanded 24 basis points quarter-over-quarter to 2.99% (nearly reaching the 3.0% year-end target), driven by lower deposit costs and higher loan repricing.
Read all positive updates
Company Guidance
Management guided to modestly positive fundamentals for 2026: net interest margin nearly hit their 3.0% target at 2.99% (up 24 bps Q/Q) and they expect only slow/mild further NIM expansion assuming no more rate cuts, while net interest income grew 3% Q/Q despite average interest-earning assets declining $185M; deposit costs fell 18 bps in Q1 (down 40 bps over two quarters) and core deposits grew 3.2% annualized, supporting a loan growth target of high single-digits (Q1 loan growth 5.5% annualized) with a loan-to-deposit target of 95%–105% and a loan pipeline near three‑year highs; balance sheet actions (sale of $147M Treasuries with $1.2M gain, $62M munis with $6.1M gain, and $97.5M FHLB prepayment with $982k prepayment expense) generated $7.3M of pretax income, boosted CET1 by 36 bps to 9.53% (ATM up to $50M could add ~100 bps CET1 if used), and positioned the bank to redeploy funds into loans (new originations ~6% yield) to capture repricing upside (portfolio loan yield 5.81% up 3 bps; 65% fixed-rate, 23% variable; $644M fixed maturing next 12 months at 5.73% WAvg yield; $106M adjustable at 3.86%); credit metrics and capital/loss reserves remain stable (NPAs 0.22%, annualized net charge-offs 0.05%, allowance 1.31% of loans), adjusted ROAA just under 1%, noninterest income >$2M per quarter since Q4'24, and management expects adjusted noninterest expense to track roughly with asset growth over time.Bridgewater Bancshares Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 303.66M | 291.63M | 251.44M | 226.95M | 169.34M | 134.19M |
| Gross Profit | 152.13M | 137.62M | 104.22M | 109.94M | 127.64M | 109.67M |
| EBITDA | 73.47M | 64.70M | 45.74M | 55.66M | 74.96M | 64.13M |
| Net Income | 53.86M | 46.09M | 32.83M | 39.96M | 53.39M | 45.69M |
Balance Sheet | ||||||
| Total Assets | 5.34B | 5.41B | 5.07B | 4.61B | 4.35B | 3.48B |
| Cash, Cash Equivalents and Short-Term Investments | 532.26M | 449.71M | 619.83M | 732.67M | 636.84M | 584.71M |
| Total Debt | 444.78M | 508.18M | 452.92M | 412.54M | 476.65M | 134.74M |
| Total Liabilities | 4.81B | 4.89B | 4.61B | 4.19B | 3.95B | 3.10B |
| Stockholders Equity | 528.42M | 517.10M | 457.94M | 425.51M | 394.06M | 379.27M |
Cash Flow | ||||||
| Free Cash Flow | 29.20M | 21.96M | 42.30M | 27.05M | 83.37M | 53.46M |
| Operating Cash Flow | 36.34M | 27.81M | 46.38M | 30.02M | 85.00M | 54.24M |
| Investing Cash Flow | -120.33M | -417.47M | -95.24M | -209.18M | -938.24M | -571.42M |
| Financing Cash Flow | 139.94M | 283.40M | 150.06M | 220.69M | 796.81M | 499.99M |
Bridgewater Bancshares Technical Analysis
Positive
19.16
Price Trends
18.32
Positive
18.27
Positive
17.41
Positive
Market Momentum
0.29
Negative
67.76
Neutral
72.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWB, the sentiment is Positive. The current price of 19.16 is above the 20-day moving average (MA) of 18.14, above the 50-day MA of 18.32, and above the 200-day MA of 17.41, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 67.76 is Neutral, neither overbought nor oversold. The STOCH value of 72.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BWB.
Bridgewater Bancshares Risk Analysis
Bridgewater Bancshares disclosed 52 risk factors in its most recent earnings report. Bridgewater Bancshares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bridgewater Bancshares Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $549.99M | 9.27 | 20.49% | 2.31% | 26.00% | 53.81% | |
73 Outperform | $533.52M | 9.04 | 12.38% | 2.78% | 38.10% | 68.10% | |
71 Outperform | $613.24M | 10.20 | 12.04% | 3.59% | 8.85% | 83.09% | |
70 Outperform | $510.45M | 7.07 | 10.67% | ― | 17.01% | 61.90% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $546.88M | 22.37 | 4.89% | 5.16% | 16.96% | ― |
* Financial Sector Average
BWB
Bridgewater Bancshares
17.98
2.16
13.65%
ACNB
ACNB
51.94
10.73
26.03%
AROW
Arrow Financial
36.25
12.08
50.00%
FFIC
Flushing Financial
15.63
3.84
32.60%
NRIM
Northrim Bancorp
23.97
3.75
18.52%
Bridgewater Bancshares Corporate Events
Business Operations and StrategyFinancial Disclosures
Bridgewater Bancshares Highlights Strategy in New Investor Presentation
Positive
May 4, 2026
Bridgewater Bancshares, Inc., a Twin Cities–focused commercial bank with a branch-light model, has built a $5.3 billion balance sheet led by $4.4 billion in loans and $4.3 billion in deposits as of March 31, 2026. The company concentrates on...
Executive/Board ChangesShareholder Meetings
Bridgewater Bancshares Shareholders Approve Proposals at Annual Meeting
Positive
May 1, 2026
Bridgewater Bancshares held its annual meeting of shareholders on April 28, 2026, with approximately 84.92 percent of outstanding common shares represented, establishing a quorum. Shareholders elected eleven directors to serve until the 2027 annua...
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
Bridgewater Bancshares Posts Strong Q1 2026 Results, Growth Plans
Positive
Apr 21, 2026
Bridgewater Bancshares reported strong first-quarter 2026 results on April 21, 2026, with net income rising to $17.4 million, or $0.58 per diluted share, up from both the prior quarter and a year earlier, while adjusted EPS was $0.41. The bank exp...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Bridgewater Bancshares Launches $50 Million ATM Equity Program
Positive
Feb 27, 2026
On February 27, 2026, Bridgewater Bancshares, Inc. and its subsidiary Bridgewater Bank entered into an Equity Distribution Agreement with Piper Sandler Co. that allows the company to sell up to $50 million of common stock from time to time throug...
Business Operations and StrategyRegulatory Filings and Compliance
Bridgewater Bancshares Updates Investor Presentation Highlighting Strategy
Positive
Feb 9, 2026
Bridgewater Bancshares, Inc. has released an investor presentation intended for periodic use by its executives in meetings with investors and analysts, detailing its business model, financial position and strategic focus. The materials emphasize t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.