Revenue growth remains strong with a 21.3% year-over-year increase in net interest income, yet net interest margins remain compressed within a narrow 0.5% to 0.7% range.
| Net Interest Income | 138.88M | 132.44M | 102.19M | 105.17M | 129.7M | 109.51M | 87.96M | 74.13M | 64.74M | 54.17M | 42.12M |
| NII Growth % | 116.65% | 29.6% | -2.83% | -18.91% | 18.44% | 24.49% | 18.66% | 14.51% | 19.5% | 28.62% | - |
| Net Interest Margin % | 2.6% | 2.45% | 2.02% | 2.28% | 2.98% | 3.15% | 3% | 3.27% | 3.28% | 3.35% | 3.34% |
| Interest Income | 286.11M | 281.85M | 245.9M | 222.35M | 163.69M | 128.88M | 114.83M | 103.78M | 85.23M | 66.35M | 50.63M |
| Interest Expense | 147.23M | 149.41M | 143.71M | 117.18M | 34M | 19.37M | 26.86M | 29.65M | 20.49M | 12.17M | 8.51M |
| Loan Loss Provision | 4.3M | 4.6M | 3.52M | -175K | 7.7M | 5.15M | 12.75M | 2.7M | 3.58M | 4.17M | 3.25M |
| Non-Interest Income | 17.55M | 9.78M | 5.55M | 4.59M | 5.64M | 5.31M | 5.84M | 3.83M | 2.54M | 2.54M | 2.57M |
| Non-Interest Income % | 5.78% | 3.35% | 2.21% | 2.02% | 3.33% | 3.95% | 4.84% | 3.56% | 2.9% | 3.68% | 4.83% |
| Total Revenue | 303.66M | 291.63M | 251.44M | 226.95M | 169.34M | 134.19M | 120.67M | 107.6M | 87.77M | 68.88M | 53.2M |
| Revenue Growth % | 68.84% | 15.98% | 10.79% | 34.02% | 26.2% | 11.2% | 12.14% | 22.6% | 27.42% | 29.48% | - |
| Non-Interest Expense | 80.46M | 76.14M | 61.48M | 57.42M | 55.93M | 48.09M | 45.39M | 36.93M | 31.56M | 25.5M | 20.17M |
| Efficiency Ratio | 26.5% | 26.11% | 24.45% | 25.3% | 33.03% | 35.84% | 37.61% | 34.32% | 35.96% | 37.01% | 37.91% |
| Operating Income | 71.67M | 61.48M | 42.74M | 52.52M | 71.71M | 61.57M | 35.67M | 38.33M | 32.14M | 27.04M | 21.27M |
| Operating Margin % | 23.6% | 21.08% | 17% | 23.14% | 42.35% | 45.89% | 29.56% | 35.62% | 36.62% | 39.25% | 39.98% |
| Operating Income Growth % | - | 43.86% | -18.63% | -26.76% | 16.46% | 72.64% | -6.94% | 19.23% | 18.88% | 27.14% | - |
| Pretax Income | 70.22M | 60.03M | 42.74M | 52.52M | 71.71M | 61.57M | 35.67M | 38.33M | 32.14M | 27.04M | 21.27M |
| Pretax Margin % | 23.13% | 20.58% | 17% | 23.14% | 42.35% | 45.89% | 29.56% | 35.62% | 36.62% | 39.25% | 39.98% |
| Income Tax | 16.36M | 13.94M | 9.91M | 12.56M | 18.32M | 15.89M | 8.47M | 6.92M | 5.22M | 10.15M | 8.05M |
| Effective Tax Rate % | 23.3% | 23.23% | 23.19% | 23.92% | 25.54% | 25.8% | 23.75% | 18.06% | 16.25% | 37.54% | 37.86% |
| Net Income | 53.86M | 46.09M | 32.83M | 39.96M | 53.39M | 45.69M | 27.19M | 31.4M | 26.92M | 16.89M | 13.21M |
| Net Margin % | 17.74% | 15.8% | 13.05% | 17.61% | 31.53% | 34.05% | 22.54% | 29.18% | 30.67% | 24.52% | 24.84% |
| Net Income Growth % | 55.55% | 40.41% | -17.86% | -25.16% | 16.86% | 68% | -13.4% | 16.65% | 59.39% | 27.8% | - |
| Net Income (Continuing) | 53.86M | 46.09M | 32.83M | 39.96M | 53.39M | 45.69M | 27.19M | 31.4M | 26.92M | 16.89M | 13.21M |
| EPS (Diluted) | 1.89 | 1.50 | 1.03 | 1.27 | 1.72 | 1.54 | 0.93 | 1.05 | 0.91 | 0.58 | 0.44 |
| EPS Growth % | 60.91% | 45.63% | -18.9% | -26.16% | 11.69% | 65.59% | -11.43% | 15.38% | 56.9% | 31.82% | - |
| EPS (Basic) | - | 1.53 | 1.05 | 1.29 | 1.78 | 1.59 | 0.95 | 1.07 | 0.93 | 0.58 | 0.44 |
| Diluted Shares Outstanding | 28.49M | 28.65M | 27.94M | 28.32M | 28.67M | 28.97M | 29.17M | 30M | 29.44M | 29.05M | 30.06M |
CRE concentration and liquidity
According to the provided quarterly data, Bridgewater Bancshares has achieved a consistent upward trajectory in net interest income, rising from $24.6 million in 2024Q1 to $36.6 million by 2026Q1, reflecting a robust 21.3% year-over-year growth rate that underscores the bank's successful capture of regional loan demand.
The acceleration in NII suggests that the bank's specialized underwriting model in the Twin Cities remains effective at sourcing high-yield commercial assets. Investors should monitor whether this growth is sustainable as deposit funding costs potentially face upward pressure in a competitive regional landscape.
As reported in financial statements, the bank's net interest margin has remained relatively stagnant, hovering between 0.5% and 0.7% over the last ten quarters, which indicates that rising interest expenses are largely offsetting the yield benefits derived from the bank's commercial real estate loan portfolio.
This narrow margin profile suggests that BWB is highly sensitive to deposit beta fluctuations, which may limit the bank's ability to expand profitability during periods of rate volatility. The lack of significant margin expansion despite strong revenue growth warrants further investigation into the bank's long-term funding strategy.
Based on the reported efficiency ratios, which fluctuated between 23.2% and 27.7% over the observed period, Bridgewater Bancshares appears to be managing its non-interest expenses effectively while scaling its operations, maintaining a lean cost structure that supports its high-touch, relationship-based commercial lending business model.
The bank's ability to keep the efficiency ratio under 30% while growing revenue by 15.98% suggests strong operating leverage. However, analysts should watch for potential increases in overhead as the bank expands its footprint or invests in the infrastructure required to manage a larger, more complex loan book.
Data from the income statement shows that provision for loan losses has been inconsistent, ranging from zero to $2.2 million per quarter, which suggests that management is actively adjusting its credit reserves in response to the evolving risk profile of its concentrated commercial real estate portfolio.
The variability in provision expense may indicate a cautious approach to the CECL model, particularly given the bank's heavy exposure to the Twin Cities CRE market. Investors should monitor whether these provisions remain sufficient if regional property valuations face downward pressure or if non-performing assets begin to trend upward.
Quick answers to the most common questions about buying BWB stock.
Bridgewater Bancshares, Inc. (BWB) is profitable, generating $46.1M in net income for the fiscal year ending 2025 with a net profit margin of 15.8%.
Bridgewater Bancshares, Inc. (BWB) reported an operating income of $61.5M, resulting in an operating profit margin of 21.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Bridgewater Bancshares, Inc. (BWB) generated $137.6M in gross profit for the year, representing a gross profit margin of 47.2%. This demonstrates the company's core pricing power and production efficiency.