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Bridgewater Bancshares , Inc. Announces Record First Quarter 2021 Net Income of $ 10.7 Million , $ 0.37 Diluted Earnings Per Share Exhibit 99.1 Bridgewater Bancshares , Inc. ( Nasdaq : BWB ) ( the Company ) , the parent company of Bridgewater Bank ( the Bank ) , today announced net income of $ 10.7 million for the first quarter of 2021 , a 43.4 % increase over net income of $ 7.4 million for the first quarter of 2020. Net income per diluted common share for the first quarter of 2021 was $ 0.37 , a 46.1 % increase , compared to $ 0.25 per diluted common share for the same period in 2020 . " This team has done a phenomenal job driving record quarterly earnings to start 2021 , " commented Chairman , Chief Executive Officer , and President , Jerry Baack . " Our results demonstrate our ability to drive strong organic loan growth and stabilize our net interest margin despite a challenging rate environment and unprecedented levels of liquidity in the system . In addition to our operating results , we have met some exciting new milestones in the first quarter of 2021 , surpassing $ 3.0 billion in assets and 200 employees for the first time in Company history . We will work to continue our momentum into the rest of 2021 despite the ongoing uncertainty related to the impacts of the pandemic . " First Quarter 2021 Financial Results ROA 1.47 % PPNR ROA ( 1 ) 2.15 % ROE 15.87 % ( 1 ) Represents a non - GAAP financial measure . See " Non - GAAP Financial Measures " for further details . Linked - Quarter Highlights Diluted earnings per share $ 0.37 Nonperforming assets to total assets 0.03 % Adjusted efficiency ratio ( 1 ) 40.7 % • • • • Diluted earnings per common share were $ 0.37 for the first quarter of 2021 , compared to $ 0.17 per common share for the fourth quarter of 2020 , or $ 0.32 per common share for the fourth quarter of 2020 when excluding tax - adjusted FHLB prepayment fees . Annualized return on average assets ( ROA ) and annualized return on average common equity ( ROE ) for the first quarter of 2021 were 1.47 % and 15.87 % compared to ROA and ROE of 1.31 % and 13.86 % , respectively , for the fourth quarter of 2020 , when excluding the tax - adjusted FHLB prepayment fees incurred in the fourth quarter of 2020 . Net interest margin was stable at 3.60 % for the first quarter of 2021 , compared to 3.61 % in the fourth quarter of 2020 . A loan loss provision of $ 1.1 million was recorded in the first quarter of 2021 to support strong organic loan growth . The allowance for loan losses to total loans was 1.48 % at March 31 , 2021 , compared to 1.50 % at December 31 , 2020. The allowance for loan losses to total loans , excluding Paycheck Protection Program ( PPP ) loans , was 1.59 % at March 31 , 2021 , compared to 1.59 % at December 31 , 2020 . • Gross loans , excluding PPP loans , increased $ 74.9 million in the first quarter of 2021 , or 13.9 % annualized . • Deposits increased $ 137.0 million in the first quarter of 2021 , which was net of a $ 96.1 million managed run - off in brokered deposits . • Tangible book value per share , a non - GAAP financial measure , increased 5.2 % , or $ 0.49 , to $ 9.80 at March 31 , 2021 , compared to $ 9.31 at December 31 , 2020 . • Annualized net loan charge - offs ( recoveries ) as a percentage of average loans were ( 0.01 ) % for the first quarter of 2021 , compared to 0.08 % for the fourth quarter of 2020 . • Loan modification balances as a percent of totals loans , excluding PPP loans , decreased from 3.0 % at December 31 , 2020 to 1.6 % at March 31 , 2021 . • Round two PPP loan originations as of March 31 , 2021 , totaled $ 70.1 million , generating net deferred fees of $ 3.0 million . Year - Over - Year Highlights • Net income was $ 10.7 million for the first quarter of 2021 , compared to $ 7.4 million for the first quarter of 2020 , an increase of $ 3.2 million , or 43.4 % . Page 1 of 16