Bridgewater Bancshares Inc (BWB)
NASDAQ:BWB
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Bridgewater Bancshares
(NASDAQ:BWB)
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Rating:63Neutral
Price Target:
$19.50
▲(3.07% Upside)
Action:DowngradedDate:03/03/26
The score is anchored by solid operating performance and a positive outlook on net interest margin expansion and growth, supported by a reasonable P/E. Offsetting this are weaker 2025 cash-flow quality/consistency, mixed near-term technical momentum, and some dilution overhang from the new ATM program.
Positive Factors
Revenue & Profitability
Meaningful top-line expansion (+32% YoY) alongside solid 2025 profitability and tangible book growth indicates the commercial banking franchise is scaling. Diversified NII and noninterest income gains point to sustainable earnings rather than one-off volatility.
Negative Factors
Weak Cash Generation
A sharp FCF step-down and poor cash conversion in 2025 reduce internal funding reliability. Volatile cash generation limits flexibility for buybacks, dividends, or opportunistic investments and increases dependence on external capital when funding growth or absorbing losses.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Profitability
Meaningful top-line expansion (+32% YoY) alongside solid 2025 profitability and tangible book growth indicates the commercial banking franchise is scaling. Diversified NII and noninterest income gains point to sustainable earnings rather than one-off volatility.
Read all positive factors
Bridgewater Bancshares (BWB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$526.44M
Dividend YieldN/A
Average Volume (3M)87.55K
Price to Earnings (P/E)10.4
Beta (1Y)0.99
Revenue Growth13.96%
EPS Growth25.74%
CountryUS
Employees292
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.44
Shares Outstanding27,824,566
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 Cap1.73
Enterprise Value/Revenue3.12
Enterprise Value/Gross Profit6.61
Enterprise Value/Ebitda14.06
Forecast
1Y Price Target
$21.50Price Target Upside13.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.86
Revenue Forecast (FY)$168.20M
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 generates revenue primarily through interest income derived from its loan portfolio, which includes commercial and residential loans. The company earns interest on loans issued to customers, with the interest rates determine...
Bridgewater Bancshares Earnings Call Summary
Earnings Call Date:Jan 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 21, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive tone: the company reported strong revenue growth (total revenue +32% YoY), net interest margin expansion (+12 bps to 2.75%), robust core deposit and loan growth (core deposits ~9% annualized in Q4; loans +11.4% for the year), tangible book value expansion (~15.3% YoY), improved efficiency (adjusted efficiency ratio 50.7%), and constructive guidance (targeting 3.0% NIM by end-2026 and high-single-digit loan growth). The negatives were modest and largely idiosyncratic: a small uptick in NPAs (0.41%), a $1.2M Q4 net charge-off tied to an isolated C&I loan, one multifamily loan moving to nonaccrual (now under contract), slight allowance decline (1.34% to 1.31%), swap fee volatility, and some near-term deposit seasonality and competitive pressures. Overall, highlights materially outweigh lowlights and management expressed confidence in continued momentum into 2026.Positive Updates
Net Interest Margin Expansion
Net interest margin increased 12 basis points to 2.75% in Q4, driven primarily by lower deposit costs; management now targets a 3.0% NIM by the end of 2026 (pulled forward from early 2027).
Negative Updates
Modest Uptick in Nonperforming Assets and Net Charge-offs
Nonperforming assets rose to 0.41% of assets in Q4; the bank recorded $1.2 million of net charge-offs during the quarter (full year net charge-offs remained low at 0.04% of average loans).
Read all updates
Q4-2025 Updates
Positive
Negative
Net Interest Margin Expansion
Net interest margin increased 12 basis points to 2.75% in Q4, driven primarily by lower deposit costs; management now targets a 3.0% NIM by the end of 2026 (pulled forward from early 2027).
Read all positive updates
Company Guidance
Bridgewater guided to a constructive 2026 outlook: management now expects to reach a 3.00% net interest margin by year‑end (up from 2.75% in Q4, a 12 bp quarter-to-quarter improvement) driven by lower deposit costs (down 22 bps to 2.97%) and repricing opportunities ( $1.8B of funding tied to short‑term rates, including $1.4B of immediately adjustable deposits; $637M of fixed‑rate loan maturities at a 5.55% WA yield and $106M of ARMs repricing at 3.84%), while variable‑rate loans have risen to 22% of the book (vs. 14% a year ago). They expect high‑single‑digit loan growth in 2026 (after 11.4% FY growth and 8.9% annualized Q4), core deposit growth to continue (8.8% annualized in Q4; 7.9% FY) with the loan‑to‑deposit ratio targeted at 95%–105%, expense growth to revert to roughly in line with asset growth (high singles after Q4 expenses ex‑merger rose 9.5% annualized), and provisions to depend on loan growth and asset quality (Q4 NPAs 0.41% of assets, Q4 net charge‑offs $1.2M; FY NCOs 0.04% of avg loans; allowance 1.31%). They also expect swap fee income to remain a contributor (Q4 swap fees $651K; ~ $500K quarterly average recent trend), to continue expanding affordable housing (Q4 +$41M, +29% for 2025), and to maintain a comfortable capital position (CET1 9.17%, $13.1M repurchase authorization remaining).Bridgewater Bancshares Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 291.63M | 251.44M | 226.95M | 169.34M | 134.19M |
| Gross Profit | 137.62M | 104.22M | 109.94M | 127.64M | 109.67M |
| EBITDA | 64.70M | 45.74M | 55.66M | 74.96M | 64.13M |
| Net Income | 46.09M | 32.83M | 39.96M | 53.39M | 45.69M |
Balance Sheet | |||||
| Total Assets | 5.41B | 5.07B | 4.61B | 4.35B | 3.48B |
| Cash, Cash Equivalents and Short-Term Investments | 899.95M | 619.83M | 732.67M | 636.84M | 584.71M |
| Total Debt | 508.18M | 452.92M | 412.54M | 476.65M | 134.74M |
| Total Liabilities | 4.89B | 4.61B | 4.19B | 3.95B | 3.10B |
| Stockholders Equity | 517.10M | 457.94M | 425.51M | 394.06M | 379.27M |
Cash Flow | |||||
| Free Cash Flow | 21.96M | 42.30M | 27.05M | 83.37M | 53.46M |
| Operating Cash Flow | 27.81M | 46.38M | 30.02M | 85.00M | 54.24M |
| Investing Cash Flow | -417.47M | -95.24M | -209.18M | -938.24M | -571.42M |
| Financing Cash Flow | 283.40M | 150.06M | 220.69M | 796.81M | 499.99M |
Bridgewater Bancshares Technical Analysis
Positive
18.92
Price Trends
18.38
Positive
18.14
Positive
17.34
Positive
Market Momentum
0.18
Negative
68.42
Neutral
91.95
Negative
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 18.92 is above the 20-day moving average (MA) of 17.69, above the 50-day MA of 18.38, and above the 200-day MA of 17.34, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 68.42 is Neutral, neither overbought nor oversold. The STOCH value of 91.95 is Negative, 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $548.77M | 9.10 | 21.32% | 2.31% | 36.60% | 92.63% | |
66 Neutral | $601.52M | 11.79 | 10.58% | 3.59% | 6.86% | 6.11% | |
63 Neutral | $526.44M | 10.41 | 8.63% | ― | 13.96% | 25.74% | |
63 Neutral | $530.31M | 13.39 | 9.18% | 2.78% | 41.95% | -4.72% | |
57 Neutral | $539.77M | 32.49 | 2.67% | 5.16% | -11.91% | -235.73% |
* Financial Sector Average
BWB
Bridgewater Bancshares
18.92
6.34
50.40%
ACNB
ACNB
51.22
12.94
33.79%
AROW
Arrow Financial
36.43
13.37
57.97%
FFIC
Flushing Financial
15.93
5.71
55.87%
NRIM
Northrim Bancorp
24.80
7.64
44.53%
Bridgewater Bancshares Corporate Events
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...
Business Operations and StrategyFinancial Disclosures
Bridgewater Bancshares Posts Strong Q4 and 2025 Results
Positive
Jan 27, 2026
On January 27, 2026, Bridgewater Bancshares reported strong fourth-quarter 2025 results, with net income rising to $13.3 million, or $0.43 per diluted share, up from $11.6 million in the prior quarter and $8.2 million a year earlier, supported by ...
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.