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Bridgewater Bancshares Inc (BWB)
NASDAQ:BWB
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Bridgewater Bancshares (BWB) AI Stock Analysis

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BWB

Bridgewater Bancshares

(NASDAQ:BWB)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
$19.50
▲(15.38% Upside)
Bridgewater Bancshares demonstrates solid financial performance and technical strength, supported by strong earnings call highlights. However, valuation concerns and cash flow pressures slightly temper the overall score. The company's strategic initiatives and growth in core deposits and loans are positive indicators for future performance.

Bridgewater Bancshares (BWB) vs. SPDR S&P 500 ETF (SPY)

Bridgewater Bancshares Business Overview & Revenue Model

Company DescriptionBridgewater 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 States. The company offers savings and money market accounts, demand deposits, time and brokered deposits, and interest and noninterest bearing transaction, as well as certificates of deposit. It also provides commercial loans to sole proprietorships, partnerships, corporations, and other business enterprises to finance accounts receivable or inventory, capital assets, or other business-related purposes; paycheck protection program loans; construction and land development loans; 1-4 family mortgage loans; multifamily lending products; owner and non-owner occupied commercial real estate loans; and consumer and other loans. In addition, the company online, mobile, and direct banking services. It operates through seven full-service offices located in Bloomington, Greenwood, Minneapolis, St. Louis Park, Orono, and St. Paul, Minnesota. The company was incorporated in 2005 and is headquartered in Saint Louis Park, Minnesota.
How the Company Makes MoneyBridgewater Bancshares generates revenue primarily through interest income from loans and fees associated with banking services. The key revenue streams include interest earned on commercial and residential loans, which comprise a significant portion of the bank's lending portfolio. Additionally, the company earns fee income from services such as account maintenance, transaction fees, and mortgage origination fees. Strategic partnerships with local businesses and real estate developers also play a role in enhancing its lending activities and attracting new clients, ultimately contributing to the bank's overall profitability.

Bridgewater Bancshares Earnings Call Summary

Earnings Call Date:Sep 30, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Jan 22, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong deposit and loan growth, increased net interest income, and successful system conversions. However, these positive aspects were balanced by higher non-interest expenses, debt-related margin impacts, and some credit challenges. The overall sentiment reflects a steady performance with potential for future improvement.
Q3-2025 Updates
Positive Updates
Strong Core Deposit Growth
Core deposits grew 11.5% annualized in the third quarter and are up 7.4% annualized year to date, demonstrating the company's successful market share gains.
Loan Growth and Net Interest Income Increase
Loan growth was 6.6% annualized during the third quarter, contributing to a $1.6 million increase in net interest income and a net interest margin expansion to 2.63%.
Tangible Book Value Growth
Tangible book value per share increased 20% annualized in the third quarter, and is up 14% annualized year to date.
Successful System Conversions
Completion of the new retail and small business online banking platform and the systems conversion of the First Minnetonka City Bank acquisition.
Asset Quality and Low Non-Performing Assets
Non-performing assets remained at low levels and net charge-offs were just 0.03% of loans.
Negative Updates
Higher Non-Interest Expenses
Non-interest expenses were higher due to redundant expenses from the systems conversion and increased salary and marketing expenses.
Subordinated Debt Impact on Margin
Issuance of $80 million subordinated debt at 7.625% to redeem $50 million of debt at 5.25% created a six basis point net drag on margin in the third quarter.
Fee Income Decline
Fee income declined in the third quarter due to the lack of swap fee income.
Loan Migration to Substandard
A multifamily loan migrated from special mention to substandard due to a canceled purchase agreement.
Company Guidance
During the third quarter of 2025, Bridgewater Bancshares reported strong financial performance, marked by an 11.5% annualized growth in core deposits and a 6.6% annualized increase in loan generation. These efforts led to a $1.6 million rise in net interest income and a slight expansion in net interest margin to 2.63%. Asset quality remained robust, with non-performing assets at low levels and net charge-offs at just 0.03% of loans. The tangible book value per share increased 20% annualized in the third quarter. The bank successfully launched a new online banking platform and completed the systems conversion of its First Minnetonka City Bank acquisition. Strategic leadership transitions were announced, with a focus on maintaining the bank's credit culture and growth trajectory. Looking forward, Bridgewater aims for continued loan and deposit growth, targeting a $10 billion bank size by 2030.

Bridgewater Bancshares Financial Statement Overview

Summary
Bridgewater Bancshares demonstrates strong profitability with a solid Gross Profit Margin of 98.16% and a robust Net Profit Margin of 28.15%. However, revenue growth has been inconsistent, posing potential challenges. The balance sheet is stable, though the low Equity Ratio suggests higher reliance on debt. Cash flow management is efficient, with strong operational cash generation.
Income Statement
Bridgewater Bancshares demonstrates a stable financial performance with a solid Gross Profit Margin of 98.16% for TTM, indicating efficient cost management. The Net Profit Margin for TTM is robust at 28.15%, reflecting strong profitability. However, the Revenue Growth Rate has been volatile, with a decline in the latest annual report, suggesting potential challenges in revenue generation. The EBIT Margin of 29.23% for TTM is healthy, showcasing operational efficiency.
Balance Sheet
The company's Debt-to-Equity Ratio of 0.94 indicates a balanced approach to leverage, although it has slightly increased compared to previous years. Return on Equity for TTM is impressive at 7.39%, highlighting effective use of equity. The Equity Ratio stands at 9.13%, which is relatively low, suggesting a higher reliance on debt financing. Overall, the balance sheet shows financial stability with some areas to monitor for leverage.
Cash Flow
Operating Cash Flow is strong relative to Net Income, with a ratio of 1.35 for TTM, underscoring efficient cash generation from operations. The Free Cash Flow Growth Rate is modest but positive, indicating steady cash flow management. Free Cash Flow to Net Income Ratio for TTM is 1.23, suggesting solid cash flow generation relative to earnings. The cash flow statement reflects a healthy liquidity position.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue269.39M251.44M226.95M169.34M134.19M120.67M
Gross Profit117.68M104.22M109.94M127.64M109.67M81.05M
EBITDA53.35M45.74M55.66M74.96M64.13M37.06M
Net Income38.03M32.83M39.96M53.39M45.69M27.19M
Balance Sheet
Total Assets5.30B5.07B4.61B4.35B3.48B2.93B
Cash, Cash Equivalents and Short-Term Investments961.38M619.83M732.67M636.84M584.71M554.16M
Total Debt526.94M452.92M412.54M476.65M134.74M142.24M
Total Liabilities4.82B4.61B4.19B3.95B3.10B2.66B
Stockholders Equity476.28M457.94M425.51M394.06M379.27M265.40M
Cash Flow
Free Cash Flow34.46M42.30M27.05M83.37M53.46M-1.67M
Operating Cash Flow40.05M46.38M30.02M85.00M54.24M23.02M
Investing Cash Flow-268.50M-95.24M-209.18M-938.24M-571.42M-530.33M
Financing Cash Flow311.85M150.06M220.69M796.81M499.99M636.05M

Bridgewater Bancshares Technical Analysis

Technical Analysis Sentiment
Positive
Last Price16.90
Price Trends
50DMA
16.76
Positive
100DMA
16.25
Positive
200DMA
15.19
Positive
Market Momentum
MACD
0.09
Positive
RSI
48.35
Neutral
STOCH
62.71
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 16.9 is below the 20-day moving average (MA) of 17.20, above the 50-day MA of 16.76, and above the 200-day MA of 15.19, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 48.35 is Neutral, neither overbought nor oversold. The STOCH value of 62.71 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 58 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$477.92M14.428.63%13.96%25.74%
70
Outperform
$456.07M16.157.36%3.03%32.18%-26.13%
70
Outperform
$463.02M10.4716.69%5.36%27.34%39.43%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
65
Neutral
$442.93M14.667.72%4.14%8.36%-2.24%
54
Neutral
$452.97M-5.27%6.70%-7.00%-233.54%
41
Neutral
$441.59M-9.79%-1.29%-1023.82%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BWB
Bridgewater Bancshares
16.90
1.71
11.26%
ACNB
ACNB
44.39
2.21
5.24%
AROW
Arrow Financial
27.31
-0.72
-2.57%
FFIC
Flushing Financial
13.13
-0.97
-6.88%
NRIM
Northrim Bancorp
20.79
4.05
24.19%
FFWM
First Foundation
5.53
-1.92
-25.77%

Bridgewater Bancshares Corporate Events

Bridgewater Bancshares Reports Steady Growth Amid Challenges
Oct 23, 2025

The recent earnings call of Bridgewater Bancshares painted a picture of steady performance with promising growth prospects. The company reported strong deposit and loan growth, alongside increased net interest income, which were tempered by higher non-interest expenses and some credit challenges. Overall, the sentiment was positive, with a focus on future improvements.

Business Operations and StrategyDividendsFinancial Disclosures
Bridgewater Bancshares Reports Strong Q3 Financial Results
Positive
Oct 21, 2025

On October 21, 2025, Bridgewater Bancshares announced its third-quarter financial results, highlighting a net income of $11.6 million, an increase from the previous quarter and the same period last year. The company reported robust growth in core deposits and loans, attributed to strategic market share gains and the successful integration of First Minnetonka City Bank. The quarterly cash dividend on its Series A Preferred Stock was declared, payable on December 1, 2025, to shareholders of record on November 14, 2025. The announcement underscores Bridgewater’s strong asset quality, tangible book value growth, and favorable outlook for continued profitability.

The most recent analyst rating on (BWB) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Bridgewater Bancshares stock, see the BWB Stock Forecast page.

Business Operations and Strategy
Bridgewater Bancshares Highlights Strategic Focus in Presentation
Positive
Aug 21, 2025

Bridgewater Bancshares, Inc. has released an investor presentation detailing its strategic focus and operational strengths. The company emphasizes its branch-light model, efficient operations, and expertise in commercial real estate, particularly in multifamily and affordable housing lending. The presentation highlights the company’s track record of profitability and growth, as well as its commitment to risk management and maintaining high asset quality. These factors position Bridgewater Bancshares as a strong player in the financial services industry, with potential implications for stakeholders in terms of stability and growth prospects.

The most recent analyst rating on (BWB) stock is a Buy with a $17.50 price target. To see the full list of analyst forecasts on Bridgewater Bancshares stock, see the BWB Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Bridgewater Bancshares Announces Executive Retirements and Promotions
Neutral
Aug 19, 2025

On August 19, 2025, Bridgewater Bancshares, Inc. announced the upcoming retirements of Mary Jayne Crocker, Executive Vice President and Chief Strategy Officer, and Jeffrey Shellberg, Executive Vice President and Chief Credit Officer. In preparation for these transitions, the company promoted Laura Espeseth, Katie Morrell, and Jessica Stejskal to key leadership roles effective September 15, 2025. Additionally, the Board appointed Mary Jayne Crocker as a director, effective February 16, 2026, after her retirement. These leadership changes are part of a strategic succession plan aimed at ensuring continued growth and leadership continuity within the organization.

The most recent analyst rating on (BWB) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on Bridgewater Bancshares stock, see the BWB Stock Forecast page.

Bridgewater Bancshares Shines in Earnings Call Amid Growth
Jul 29, 2025

Bridgewater Bancshares recently held its earnings call, revealing a strong performance characterized by impressive revenue, loan, and deposit growth. The company achieved record fee income and was recognized as a top workplace, showcasing a positive working environment. Despite challenges such as subordinated debt impacting net interest margin and increased market competition, the positive aspects significantly outweigh the negatives.

Bridgewater Bancshares Reports Strong Q2 2025 Results
Jul 25, 2025

Bridgewater Bancshares, Inc., headquartered in St. Louis Park, Minnesota, is a financial holding company that operates Bridgewater Bank, offering a range of banking services to businesses and individuals across the Twin Cities.

Stock BuybackDividendsFinancial Disclosures
Bridgewater Bancshares Extends Stock Repurchase Program
Positive
Jul 23, 2025

On July 22, 2025, Bridgewater Bancshares extended its 2022 Stock Repurchase Program to August 26, 2026, with $13.1 million remaining for stock repurchases. The company also announced a quarterly cash dividend on its Series A Preferred Stock, payable on September 2, 2025. In the second quarter of 2025, Bridgewater reported a net income of $11.5 million, reflecting strong profitability and growth, driven by increased net interest margin, record fee income, and robust loan growth. The company capitalized on local M&A disruptions to attract talent and clients, supporting its tangible book value and shareholder value.

The most recent analyst rating on (BWB) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on Bridgewater Bancshares stock, see the BWB Stock Forecast page.

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.Date of analysis: Oct 22, 2025