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Bridgewater Bancshares , Inc. Announces Record Third Quarter 2021 Net Income of $ 11.5 Million , $ 0.40 Diluted Earnings Per Common Share Exhibit 99.1 Bridgewater Bancshares , Inc. ( Nasdaq : BWB ) ( the Company ) , the parent company of Bridgewater Bank ( the Bank ) , today announced net income of $ 11.5 million for the third quarter of 2021 , a 4.7 % increase over net income of $ 11.0 million for the second quarter of 2021 , and a 60.4 % increase over net income of $ 7.2 million for the third quarter of 2020. Net income per diluted common share for the third quarter of 2021 was $ 0.40 , a 4.8 % increase compared to $ 0.38 per diluted common share for the second quarter of 2021 , and a 60.8 % increase , compared to $ 0.25 per diluted common share for the same period in 2020 . " Bridgewater's third consecutive quarter of record net income was highlighted by a continuation of our robust organic loan growth , as well as two capital raising transactions to support our ongoing growth plans , " said Chairman , Chief Executive Officer , and President , Jerry Baack . “ Driven by expanded lending teams , strong brand penetration and M & A- related market disruption , we are generating consistent loan growth by providing our clients with our signature high - touch and responsive level of service . As a result , we have been able to drive continued revenue growth and maintain an adjusted efficiency ratio in the low 40 % range , even as we make incremental investments in the business to support our broader growth strategy . With superb asset quality trends and successful subordinated debt and preferred stock issuances during the third quarter , we are well positioned to continue our unique growth story and drive shareholder value going forward . " Third Quarter 2021 Financial Results ROA 1.37 % PPNR ROA ( 1 ) 2.09 % ROE 13.81 Diluted earnings per share % 0.40 Nonperforming assets to total assets 0.02 % Adjusted efficiency ratio ( 1 ) 41.5 % ( 1 ) Represents a non - GAAP financial measure . See " Non - GAAP Financial Measures " for further details . Third Quarter 2021 Highlights • • • Diluted earnings per common share were $ 0.40 for the third quarter of 2021 , compared to $ 0.38 per common share for the second quarter of 2021. Adjusted diluted earnings per common share , a non - GAAP financial measure , were $ 0.41 for the third quarter of 2021 , excluding a $ 582,000 loss , or $ 0.01 per common share , on the extinguishment of subordinated debt from the partial early redemption of $ 11.3 million of subordinated debentures issued in July 2017 . Annualized return on average assets ( ROA ) and annualized return on average shareholders ' equity ( ROE ) for the third quarter of 2021 were 1.37 % and 13.81 % , compared to ROA and ROE of 1.43 % and 15.40 % , respectively , for the second quarter of 2021. Annualized return on average tangible common equity , a non - GAAP financial measure , was 15.47 % for the third quarter of 2021 , compared to 15.58 % for the second quarter of 2021 . Pre - provision net revenue ( PPNR ) , a non - GAAP financial measure , was $ 17.5 million for the third quarter of 2021 , an increase of 10.3 % , compared to $ 15.9 million for the second quarter of 2021. PPNR ROA , a non - GAAP financial measure , was 2.09 % for the third quarter of 2021 , compared to 2.07 % for the second quarter of 2021 . • Gross loans increased $ 117.8 million in the third quarter of 2021 , or 18.0 % annualized , compared to the second quarter of 2021. Gross loans , excluding Paycheck Protection Program ( PPP ) loans , increased $ 162.7 million in the third quarter of 2021 , or 25.9 % annualized , compared to the second quarter of 2021 . • Deposits increased $ 133.3 million in the third quarter of 2021 , or 19.4 % annualized , compared to the second quarter of 2021 . • Net interest margin ( on a fully tax - equivalent basis ) was 3.54 % for the third quarter of 2021 , compared to 3.52 % in the second quarter of 2021 . • The adjusted efficiency ratio , a non - GAAP financial measure which excludes the impact of certain non - routine income and expenses from noninterest expense , was 41.5 % for the third quarter of 2021 , compared to 41.5 % for the second quarter of 2021 . • A loan loss provision of $ 1.3 million was recorded in the third quarter of 2021 to support strong organic loan growth . The allowance for loan losses to total loans was 1.43 % at September 30 , 2021 , compared to 1.45 % at June 30 , 2021. The allowance for loan losses to total loans , excluding PPP loans , was 1.46 % at September 30 , 2021 , compared to 1.50 % at June 30 , 2021 . Page 1 of 19