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Bridgewater Bancshares
(NASDAQ:BWB)
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Rating:65Neutral
Price Target:
$22.50
▲(8.28% Upside)
Action:Downgraded
Date:07/30/26
The score reflects steady-but-mixed financial performance (stronger balance sheet and improving returns offset by TTM revenue and operating margin pressure) and a generally positive earnings call centered on margin/NII expansion and capital build. Offsetting factors include a relatively high P/E with no dividend yield provided and only modest near-term technical weakness versus the 20-day average.
Positive Factors
Strengthening balance sheet
Improving leverage and higher equity bolster solvency and capital flexibility, reducing refinancing and liquidity risk over multiple quarters. A stronger CET1 and rising tangible book provide durable capacity for loan growth, loss absorption, buybacks and selective capital returns without immediate outside funding.
Negative Factors
Revenue decline and margin compression
A meaningful multi-quarter revenue decline and compressed operating margin suggest the bank faces structural headwinds to top-line growth or fee diversification. Sustained revenue pressure erodes operating leverage and makes profitability more sensitive to funding costs and credit volatility over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strengthening balance sheet
Improving leverage and higher equity bolster solvency and capital flexibility, reducing refinancing and liquidity risk over multiple quarters. A stronger CET1 and rising tangible book provide durable capacity for loan growth, loss absorption, buybacks and selective capital returns without immediate outside funding.
Read all positive factors
Bridgewater Bancshares (BWB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$571.06M
Dividend YieldN/A
Average Volume (3M)87.55K
Price to Earnings (P/E)10.8
Beta (1Y)1.02
Revenue Growth13.62%
EPS Growth52.53%
CountryUS
Employees322
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.90
Shares Outstanding27,883,823
10 Day Avg. Volume112,842
30 Day Avg. Volume87,551
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)0.93
Price to Sales (P/S)1.65
P/FCF Ratio21.85
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$24.33Price Target Upside17.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)1.85
Revenue Forecast (FY)$171.07M
Bridgewater Bancshares Business Overview & Revenue Model
Company Description
Bridgewater Bancshares, Inc. functions as the holding company for Bridgewater Bank, which delivers a comprehensive array of banking products and services. Its core clientele includes commercial real estate investors, small business entrepreneurs, ...
How the Company Makes Money
Bridgewater Bancshares makes money primarily through its banking subsidiary by generating net interest income and noninterest income. Net interest income is earned from the spread between (1) interest income on loans and other interest-earning ass...
Bridgewater Bancshares Earnings Call Summary
Earnings Call Date:Jul 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive picture: strong margin expansion (3.07% NIM), material net interest income growth (21% annualized), improved profitability (ROA >1%), meaningful tangible book and capital build, and low net charge-offs. Management tempered optimism with clear headwinds: seasonal/core deposit softness, elevated payoff activity moderating loan growth, modestly higher NPAs with increased specific reserves, and front-loaded personnel costs. Overall the operational and credit metrics are supportive of continued momentum, though execution risks around deposit funding, competitive spreads, and resolving the few larger problem credits remain.Positive Updates
Net Interest Margin and Net Interest Income Expansion
Net interest margin expanded to 3.07% in Q2 (June month 3.08%), exceeding the 3.0% year-end target; net interest income grew at a 21% annualized pace in the quarter. Loan yields expanded 10 bps in Q2 and are up 13 bps year-to-date.
Negative Updates
Core Deposit Pressure and Elevated Market Competition
Core deposits declined 3.5% in Q2 (seasonal low), even though total deposits grew $41 million (3.8% annualized). Management noted elevated deposit competition in the Twin Cities and the need to supplement with wholesale funding at times.
Read all updates
Q2-2026 Updates
Positive
Negative
Net Interest Margin and Net Interest Income Expansion
Net interest margin expanded to 3.07% in Q2 (June month 3.08%), exceeding the 3.0% year-end target; net interest income grew at a 21% annualized pace in the quarter. Loan yields expanded 10 bps in Q2 and are up 13 bps year-to-date.
Read all positive updates
Company Guidance
Bridgewater guided to mid- to high-single-digit loan growth in the back half of 2026, expecting continued net interest margin expansion but at a slower pace after already surpassing its 3.0% year‑end goal (Q2 NIM 3.07%, June 3.08%), which should support further net interest income after NII grew 21% annualized in Q2; management also reiterated expectations that expenses will be relatively flat from Q2 levels for the remainder of 2026 after revenue increased ~20% annualized while non‑interest expense rose 13%. They plan to align loan growth with core deposit growth (total deposits rose $41M, +3.8% annualized; core deposits down 3.5% in Q2) while supplementing with wholesale funding and about $600M of time/brokered deposits that reprice around 4–4.5%. Key balance sheet metrics cited include Q2 loan growth of 5.4% annualized, 64% of loans fixed‑rate with $629M maturing in 12 months (WAC 5.62%) and $114M AR loans repricing at 3.99%, variable loans now 25% (vs. 18% a year ago); capital and credit guidance reflected CET1 9.61% (up 8 bps q/q, 58 bps y/y), tangible book $16.61 (17% annualized), NPA 40 bps, allowance 1.30% of loans (down 5 bps y/y), and very low net charge‑offs of 4 bps.Bridgewater Bancshares Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
71
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 255.29M | 291.63M | 251.44M | 226.95M | 169.34M | 134.19M |
| Gross Profit | 107.99M | 137.62M | 104.22M | 109.94M | 127.64M | 109.67M |
| EBITDA | 34.92M | 64.70M | 45.74M | 55.66M | 74.96M | 64.13M |
| Net Income | 56.35M | 46.09M | 32.83M | 39.96M | 53.39M | 45.69M |
Balance Sheet | ||||||
| Total Assets | 5.39B | 5.41B | 5.07B | 4.61B | 4.35B | 3.48B |
| Cash, Cash Equivalents and Short-Term Investments | 775.22M | 449.71M | 619.83M | 732.67M | 636.84M | 584.71M |
| Total Debt | 434.88M | 508.18M | 452.92M | 412.54M | 476.65M | 134.74M |
| Total Liabilities | 4.84B | 4.89B | 4.61B | 4.19B | 3.95B | 3.10B |
| Stockholders Equity | 547.91M | 517.10M | 457.94M | 425.51M | 394.06M | 379.27M |
Cash Flow | ||||||
| Free Cash Flow | 38.16M | 21.96M | 42.30M | 27.05M | 83.37M | 53.46M |
| Operating Cash Flow | 42.30M | 27.81M | 46.38M | 30.02M | 85.00M | 54.24M |
| Investing Cash Flow | -104.02M | -417.47M | -95.24M | -209.18M | -938.24M | -571.42M |
| Financing Cash Flow | 14.03M | 283.40M | 150.06M | 220.69M | 796.81M | 499.99M |
Bridgewater Bancshares Technical Analysis
Positive
20.78
Price Trends
20.45
Positive
19.31
Positive
18.64
Positive
Market Momentum
0.04
Positive
52.83
Neutral
77.63
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 20.78 is below the 20-day moving average (MA) of 21.21, above the 50-day MA of 20.45, and above the 200-day MA of 18.64, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 52.83 is Neutral, neither overbought nor oversold. The STOCH value of 77.63 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $658.47M | 12.19 | 13.02% | 2.28% | 24.95% | 95.35% | |
76 Outperform | $589.71M | 8.55 | 20.68% | 2.36% | 18.07% | 52.19% | |
74 Outperform | $658.52M | 12.77 | 11.82% | 2.99% | 8.43% | 69.86% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $571.06M | 10.78 | 10.78% | ― | 13.62% | 52.53% |
* Financial Sector Average
BWB
Bridgewater Bancshares
21.07
5.71
37.13%
ACNB
ACNB
65.23
25.11
62.58%
AROW
Arrow Financial
40.53
14.99
58.68%
NRIM
Northrim Bancorp
26.99
7.23
36.60%
Bridgewater Bancshares Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Bridgewater Bancshares Posts Solid Second-Quarter 2026 Results
Positive
Jul 21, 2026
On July 21, 2026, Bridgewater Bancshares reported second-quarter 2026 net income of $14.0 million, or $0.45 per diluted share, down from the prior quarter but above the year-ago period, as net interest income rose 21% annualized and net interest m...
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...
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.