Earnings release
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Exhibit 99.1 Page 1 of 19 Media Contact: Emily Karpenske | Senior Communication Specialist Emily.Karpenske@bwbmn.com | 952.653.0624 Investor Contact: Justin Horstman | VP Investor Relations Justin.Horstman@bwbmn.com | 952.542.5169 October 20, 2026 Bridgewater Bancshares, Inc. Announces Third Quarter 2026 Financial Results Third Quarter 2026 Highlights ● Net income of $15.0 million, or $0.49 per diluted common share. ● Pre-provision net revenue(1) increased $2.9 million, or 60.4% annualized, from the second quarter of 2026. ● Net interest income increased $2.1 million, or 21.5% annualized, from the second quarter of 2026. ● Net interest margin (on a fully tax-equivalent basis) of 3.09%, an increase of two basis points from the second quarter of 2026. ● Efficiency ratio(1) of 48.8%, down from 53.0% for the second quarter of 2026. ● Gross loans increased by $80.4 million, or 7.2% annualized, from the second quarter of 2026. ● Total deposits increased by $126.8 million, or 11.6% annualized, from the second quarter of 2026. ● Core deposits(2) increased by $165.3 million, or 19.6% annualized, from the second quarter of 2026. ● Annualized net loan charge-offs as a percentage of average loans of 0.21%, up from 0.04% for the second quarter of 2026. ● Nonperforming assets to total assets of 0.37% at September 30, 2026, down from 0.40% at June 30, 2026. ● Tangible book value per share(1) of $16.33 at September 30, 2026, a decrease of 6.7% annualized from the second quarter of 2026. ● Common Equity Tier 1 Risk-Based Capital Ratio of 9.63%, up from 9.61% at June 30, 2026. (1) Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details. (2) Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000.
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Page 2 of 19 St. Louis Park, MN – Bridgewater Bancshares, Inc. (Nasdaq: BWB) (the “Company”), the parent company of Bridgewater Bank (the “Bank”), today announced net income of $15.0 million for the third quarter of 2026, compared to $14.0 million for the second quarter of 2026, and $11.6 million for the third quarter of 2025. Earnings per diluted common share were $0.49 for the third quarter of 2026, compared to $0.45 for the second quarter of 2026, and $0.38 for the third quarter of 2025. “Bridgewater delivered an impressive quarter highlighted by strong profitability and balance sheet growth as we continued to execute on our profitable growth strategy,” said Chairman and Chief Executive Officer, Jerry Baack. “Across-the-board revenue growth and well-controlled expenses in the third quarter resulted in a meaningful increase in pre-provision net revenue and an efficiency ratio below 50% for the first time since the first quarter of 2023. In addition, we generated robust core deposit growth during the quarter, which supported our organic loan growth engine, improved our overall deposit mix, and helped drive continued net interest margin expansion. “Looking ahead, our balance sheet is better positioned today for a higher interest rate environment given our intentional mix shift toward more variable-rate loans over the past few years. Our teams continue to deliver an unconventional level of service that deepens existing client relationships and creates new ones, reinforcing our ability to sustain profitable growth and generate long-term value for shareholders.”
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Page 3 of 19 Key Financial Measures As of and for the Three Months Ended As of and for the Nine Months Ended September 30, June 30, September 30, September 30, September 30, 2026 2026 2025 2026 2025 Per Common Share Data Basic Earnings Per Share $ 0.50 $ 0.47 $ 0.38 $ 1.56 $ 1.08 Diluted Earnings Per Share 0.49 0.45 0.38 1.52 1.06 Adjusted Diluted Earnings Per Share (1) 0.49 0.45 0.39 1.35 1.08 Book Value Per Share 16.98 17.27 15.62 16.98 15.62 Tangible Book Value Per Share (1) 16.33 16.61 14.93 16.33 14.93 Financial Ratios Return on Average Assets (2) 1.08% 1.06% 0.86% 1.16% 0.84% Pre-Provision Net Revenue Return on Average Assets (1)(2) 1.57 1.43 1.19 1.44 1.20 Return on Average Shareholders' Equity (2) 10.81 10.17 9.47 11.43 9.23 Return on Average Tangible Common Equity (1)(2) 11.91 11.15 10.50 12.67 10.23 Net Interest Margin (3) 3.09 3.07 2.63 3.05 2.59 Core Net Interest Margin (1)(3) 2.98 2.94 2.52 2.93 2.46 Cost of Total Deposits 2.78 2.80 3.19 2.79 3.18 Cost of Funds 2.92 2.91 3.25 2.91 3.20 Yield on Loans 5.96 5.91 5.79 5.89 5.71 Efficiency Ratio (1) 48.8 53.0 54.7 52.6 54.2 Noninterest Expense to Average Assets (2) 1.53 1.65 1.47 1.63 1.46 Tangible Common Equity to Tangible Assets (1) 8.16 8.62 7.71 8.16 7.71 Common Equity Tier 1 Risk-based Capital Ratio (Consolidated) (4) 9.63 9.61 9.08 9.63 9.08 Adjusted Financial Ratios (1) Adjusted Return on Average Assets (2) 1.08% 1.06% 0.88% 1.04% 0.86% Adjusted Pre-Provision Net Revenue Return on Average Assets (2) 1.57 1.43 1.23 1.46 1.24 Adjusted Return on Average Shareholders' Equity (2) 10.81 10.17 9.77 10.24 9.41 Adjusted Return on Average Tangible Common Equity (2) 11.91 11.15 10.86 11.26 10.44 Adjusted Efficiency Ratio 48.8 53.0 53.2 51.8 52.8 Adjusted Noninterest Expense to Average Assets (2) 1.53 1.65 1.43 1.61 1.42 Balance Sheet and Asset Quality (dollars in thousands) Total Assets $ 5,615,482 $ 5,389,726 $ 5,359,994 $ 5,615,482 $ 5,359,994 Total Loans, Gross 4,506,834 4,426,389 4,214,554 4,506,834 4,214,554 Deposits 4,473,019 4,346,204 4,292,764 4,473,019 4,292,764 Loan to Deposit Ratio 100.8% 101.8% 98.2% 100.8% 98.2% Net Loan Charge-Offs to Average Loans (2) 0.21 0.04 0.03 0.10 0.01 Nonperforming Assets to Total Assets (5) 0.37 0.40 0.19 0.37 0.19 Allowance for Credit Losses to Total Loans 1.28 1.30 1.34 1.28 1.34 (1) Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details. (2) Annualized. (3) Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of 21%. (4) Preliminary data. Current period subject to change prior to filings with applicable regulatory agencies. (5) Nonperforming assets are defined as nonaccrual loans plus 90 days past due and still accruing plus foreclosed assets.
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Page 4 of 19 Income Statement Net Interest Margin and Net Interest Income Net interest margin (on a fully tax-equivalent basis) for the third quarter of 2026 was 3.09%, a two basis point increase from 3.07% in the second quarter of 2026, and a 46 basis point increase from 2.63% in the third quarter of 2025. Core net interest margin (on a fully tax-equivalent basis), a non-GAAP financial measure which excludes the impact of loan fees and purchase accounting accretion attributable to the acquisition of First Minnetonka City Bank (“FMCB”), was 2.98% for the third quarter of 2026, a four basis point increase from 2.94% in the second quarter of 2026, and a 46 basis point increase from 2.52% in the third quarter of 2025. ● Net interest margin expanded to 3.09% in the third quarter of 2026 primarily due to growth and repricing of the loan and investment securities portfolios at higher yields. ● The year-over-year expansion in net interest margin was primarily due to growth and repricing of the loan portfolio at higher yields and lower rates paid on deposits. Net interest income was $40.7 million for the third quarter of 2026, an increase of $2.1 million from $38.6 million in the second quarter of 2026, and an increase of $6.6 million from $34.1 million in the third quarter of 2025. ● The linked-quarter increase in net interest income was primarily driven by growth in the loan and investment securities portfolios at higher yields and higher cash balances, offset partially by higher deposit balances. ● The year-over-year increase in net interest income was primarily due to growth in the loan portfolio at higher yields and lower rates paid on deposits, offset partially by lower balances and yields in the investment securities portfolio and lower cash balances. Interest income was $76.6 million for the third quarter of 2026, an increase of $4.0 million from $72.7 million in the second quarter of 2026, and an increase of $3.0 million from $73.6 million in the third quarter of 2025. ● The yield on interest earning assets (on a fully tax-equivalent basis) was 5.76% in the third quarter of 2026, compared to 5.73% in the second quarter of 2026, and 5.63% in the third quarter of 2025. ● The linked-quarter increase in the yield on interest earning assets (on a fully tax-equivalent basis) was primarily driven by growth and repricing of the loan portfolio at higher yields and higher yielding investment securities balances. ● The year-over-year increase in the yield on interest earning assets (on a fully tax-equivalent basis) was primarily due to growth and repricing of the loan portfolio at accretive yields. ● The aggregate loan yield was 5.96% in the third quarter of 2026, five basis points higher than 5.91% in the second quarter of 2026, and 17 basis points higher than 5.79% in the third quarter of 2025. ● Core loan yield, a non-GAAP financial measure, was 5.82% in the third quarter of 2026, six basis points higher than 5.76% in the second quarter of 2026, and 16 basis points higher than 5.66% in the third quarter of 2025. A summary of interest and fees recognized on loans for the periods indicated is as follows: Three Months Ended September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 Interest 5.82% 5.76% 5.66% 5.63% 5.66% Fees 0.12 0.13 0.12 0.10 0.09 Accretion 0.02 0.02 0.03 0.05 0.04 Yield on Loans 5.96% 5.91% 5.81% 5.78% 5.79% Interest expense was $36.0 million for the third quarter of 2026, an increase of $1.9 million from $34.1 million in the second quarter of 2026, and a decrease of $3.6 million from $39.5 million in the third quarter of 2025. ● The cost of interest bearing liabilities was 3.54% in the third quarter of 2026, compared to 3.51% in the second quarter of 2026, and 3.89% in the third quarter of 2025. ● The linked-quarter increase in the cost of interest bearing liabilities was primarily due to higher balances and rates paid on interest bearing transaction deposits, time deposits, and FHLB advances. ● The year-over-year decrease in the cost of interest bearing liabilities was primarily due to lower rates paid on interest bearing deposits. Interest expense on deposits was $30.9 million for the third quarter of 2026, an increase of $1.2 million from $29.7 million in the second quarter of 2026, and a decrease of $3.7 million from $34.6 million in the third quarter of 2025.
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Page 5 of 19 ● The cost of total deposits was 2.78% in the third quarter of 2026, two basis points lower than 2.80% in the second quarter of 2026, and 41 basis points lower than 3.19% in the third quarter of 2025. ● The linked-quarter decrease in the cost of total deposits was primarily due to lower rates paid on brokered deposits and an increase in noninterest bearing deposits. ● The year-over-year decrease in the cost of total deposits was primarily due to lower rates paid on deposits following interest rate cuts in 2025 and an increase in noninterest bearing deposits. Provision for Credit Losses The provision for credit losses on loans and leases was $2.8 million for the third quarter of 2026, compared to $550,000 for the second quarter of 2026, and $900,000 for the third quarter of 2025. ● The provision recorded in the third quarter of 2026 was primarily attributable to growth in the loan portfolio and an additional specific reserve. ● The allowance for credit losses on loans to total loans was 1.28% at September 30, 2026, compared to 1.30% at June 30, 2026, and 1.34% at September 30, 2025. The provision for credit losses for off-balance sheet credit exposures was $-0- for both the second and third quarters of 2026, compared to a provision of $200,000 for the third quarter of 2025. Noninterest Income Noninterest income was $2.6 million for the third quarter of 2026, an increase of $249,000 from $2.3 million for the second quarter of 2026, and an increase of $512,000 from $2.1 million for the third quarter of 2025. ● The linked-quarter increase was primarily due to higher letter of credit fees, offset partially by lower swap fees. ● The year-over-year increase was primarily due to higher letter of credit fees and swap fees. Noninterest Expense Noninterest expense was $21.3 million for the third quarter of 2026, a decrease of $553,000 from $21.9 million for the second quarter of 2026, and an increase of $1.4 million from $20.0 million for the third quarter of 2025. ● The linked-quarter decrease was primarily due to lower marketing and advertising expenses and lower professional and consulting costs, offset partially by higher salaries and employee benefits. ● The year-over-year increase was primarily attributable to increases in salaries and employee benefits and information technology expenses. ● Noninterest expense for the second and third quarters of 2026 included no merger-related expenses associated with the acquisition of FMCB, compared to merger-related expenses of $530,000 for the third quarter of 2025, which is considered a non-core item. ● The efficiency ratio (on a fully tax-equivalent basis), a non-GAAP financial measure, was 48.8% for the third quarter of 2026, compared to 53.0% for the second quarter of 2026, and 54.7% for the third quarter of 2025. ● The Company had 360 full-time equivalent employees at September 30, 2026, compared to 355 at June 30, 2026, and 325 at September 30, 2025. The linked-quarter and the year-over-year increases were primarily driven by hiring of key talent across the organization. Income Taxes The effective combined federal and state income tax rate was 21.5% for the third quarter of 2026, compared to 24.1% for the second quarter of 2026, and 23.2% for the third quarter of 2025. ● The linked-quarter and the year-over-year decreases were primarily due to the increase in tax-exempt interest income following the purchase of tax-exempt municipal securities investments.
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Balance Sheet Loans (dollars in thousands) September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 Commercial $ 627,569 $ 591,034 $ 593,406 $ 547,245 $ 533,476 Leases 41,854 41,802 41,791 43,407 43,186 Construction and Land Development 229,478 186,248 209,421 216,163 159,991 1-4 Family Construction 57,825 46,539 50,629 45,152 41,739 Real Estate Mortgage: 1-4 Family Mortgage 456,458 485,288 488,029 496,142 487,297 Multifamily 1,661,765 1,690,566 1,590,091 1,587,338 1,578,223 CRE Owner Occupied 191,664 191,153 188,588 189,754 192,966 CRE Nonowner Occupied 1,211,595 1,168,863 1,185,371 1,165,104 1,158,622 Total Real Estate Mortgage Loans 3,521,482 3,535,870 3,452,079 3,438,338 3,417,108 Consumer and Other 28,626 24,896 20,716 19,212 19,054 Total Loans, Gross 4,506,834 4,426,389 4,368,042 4,309,517 4,214,554 Allowance for Credit Losses on Loans (57,819) (57,418) (57,277) (56,443) (56,390) Net Deferred Loan Fees (8,889) (8,469) (8,633) (8,966) (8,282) Total Loans, Net $ 4,440,126 $ 4,360,502 $ 4,302,132 $ 4,244,108 $ 4,149,882 Total gross loans at September 30, 2026 were $4.51 billion, an increase of $80.4 million, or 7.2% annualized, compared to total gross loans of $4.43 billion at June 30, 2026, and an increase of $292.3 million, or 6.9%, compared to total gross loans of $4.21 billion at September 30, 2025. ● The increase in the loan portfolio during the third quarter of 2026 was primarily due to growth in the construction and land development, commercial real estate (“CRE”) nonowner occupied, and commercial portfolios. Deposits (dollars in thousands) September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 Noninterest Bearing Transaction Deposits $ 893,817 $ 830,952 $ 828,845 $ 923,070 $ 822,632 Interest Bearing Transaction Deposits 947,073 944,502 899,911 893,740 860,774 Savings and Money Market Deposits 1,538,271 1,435,582 1,497,517 1,380,922 1,428,726 Time Deposits 298,804 243,694 232,959 312,154 346,214 Brokered Deposits 795,054 891,474 846,279 810,483 834,418 Total Deposits $ 4,473,019 $ 4,346,204 $ 4,305,511 $ 4,320,369 $ 4,292,764 Total deposits at September 30, 2026 were $4.47 billion, an increase of $126.8 million, or 11.6% annualized, compared to total deposits of $4.35 billion at June 30, 2026, and an increase of $180.3 million, or 4.2%, compared to total deposits of $4.29 billion at September 30, 2025. ● Core deposits, defined as total deposits excluding brokered deposits and certificates of deposit greater than $250,000, increased $165.3 million, or 19.6% annualized, from June 30, 2026, and increased $234.3 million, or 7.1%, from September 30, 2025. ● Noninterest bearing transaction deposits increased $62.9 million, or 30.0% annualized, from June 30, 2026, and increased $71.2 million, or 8.7%, from September 30, 2025. ● Brokered deposits decreased $96.4 million from June 30, 2026, and decreased $39.4 million from September 30, 2025. Consistent with historical practice, brokered deposits continue to be used as a supplemental funding source, as needed. Asset Quality Overall asset quality remained strong due to the Company’s measured risk selection, consistent underwriting standards, active credit oversight, and experienced lending and credit teams. ● Annualized net charge-offs as a percentage of average loans were 0.21% for the third quarter of 2026, compared to 0.04% for the second quarter of 2026, and 0.03% for the third quarter of 2025. ● At September 30, 2026, the Company’s nonperforming assets, which included nonaccrual loans, loans past due 90 days and still
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Page 7 of 19 accruing, and foreclosed assets, were $20.9 million, or 0.37% of total assets, compared to $21.6 million, or 0.40% of total assets, at June 30, 2026, and $10.0 million, or 0.19% of total assets, at September 30, 2025. ● Loans with potential weaknesses that warranted a watch/special mention risk rating at September 30, 2026 totaled $23.6 million, compared to $38.5 million at June 30, 2026, and $40.6 million at September 30, 2025. ● Loans that warranted a substandard risk rating at September 30, 2026 totaled $42.9 million, compared to $43.9 million at June 30, 2026, and $58.1 million at September 30, 2025. Capital Total shareholders’ equity at September 30, 2026 was $541.4 million, a decrease of $6.5 million, or 4.7% annualized, compared to $547.9 million at June 30, 2026, and an increase of $43.9 million, or 8.8%, over $497.5 million at September 30, 2025. ● The linked-quarter decrease was primarily due to an increase in unrealized losses in the investment securities portfolio and preferred stock dividends, offset partially by net income retained and an increase in unrealized gains in the derivatives portfolio. ● The year-over-year increase was primarily due to net income retained and an increase in unrealized gains in the derivatives portfolio, offset partially by an increase in unrealized losses in the investment securities portfolio, preferred stock dividends and stock repurchases. ● The Consolidated Common Equity Tier 1 Risk-Based Capital Ratio was 9.63% at September 30, 2026, compared to 9.61% at June 30, 2026, and 9.08% at September 30, 2025. ● Tangible common equity as a percentage of tangible assets, a non-GAAP financial measure, was 8.16% at September 30, 2026, compared to 8.62% at June 30, 2026, and 7.71% at September 30, 2025. Tangible book value per share, a non-GAAP financial measure, was $16.33 as of September 30, 2026, a decrease of 6.7% annualized from $16.61 as of June 30, 2026, and an increase of 9.4% from $14.93 as of September 30, 2025. The Company did not repurchase any shares of its common stock during both the third quarter of 2026 and 2025, compared to 38,659 shares repurchased during the second quarter of 2026. ● The Company had $12.4 million remaining under its current share repurchase authorization at September 30, 2026. The Company did not sell any shares during the third quarter of 2026 as part of its existing at-the-market offering. Today, the Company also announced that its Board of Directors has declared a quarterly cash dividend on its 5.875% Non- Cumulative Perpetual Preferred Stock, Series A (“Series A Preferred Stock”). The quarterly cash dividend of $36.72 per share, equivalent to $0.3672 per depositary share, each representing a 1/100th interest in a share of the Series A Preferred Stock (Nasdaq: BWBBP), is payable on December 1, 2026 to shareholders of record of the Series A Preferred Stock at the close of business on November 13, 2026. Conference Call and Webcast The Company will host a conference call to discuss its third quarter 2026 financial results on Wednesday, October 21, 2026 at 8:00 a.m. Central Time. The conference call can be accessed by dialing 844-481-2913 and requesting to join the Bridgewater Bancshares earnings call. To listen to a replay of the conference call via phone, please dial 855-669-9658 and enter access code 9617563. The replay will be available through October 28, 2026. The conference call will also be available via a live webcast on the Investor Relations section of the Company’s website, investors.bridgewaterbankmn.com, and archived for replay. About the Company Bridgewater Bancshares, Inc. (Nasdaq: BWB) is a St. Louis Park, Minnesota-based financial holding company founded in 2005. Its banking subsidiary, Bridgewater Bank, is a premier, full-service bank dedicated to providing responsive support and simple solutions to businesses, entrepreneurs, and successful individuals across the Twin Cities. Bridgewater offers a comprehensive suite of products and services spanning deposits, lending, and treasury management solutions. Bridgewater has received numerous awards for its banking services and esteemed corporate culture. With total assets of $5.6 billion as of September 30, 2026 and nine strategically located branches, Bridgewater is one of the largest locally-led banks in Minnesota and is committed to being the finest entrepreneurial bank. For more information, please visit www.bridgewaterbankmn.com.
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Use of Non-GAAP Financial Measures In addition to the results presented in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company routinely supplements its evaluation with an analysis of certain non-GAAP financial measures. The Company believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors to help them understand the Company’s operating performance and trends, and to facilitate comparisons with the performance of peers. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of non-GAAP disclosures used in this earnings release to the comparable GAAP measures are provided in the accompanying tables. Forward-Looking Statements This earnings release contains “forward-looking statements” within the meanings of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, identified by words such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized”, “target” and “outlook”, or the negative version of those words or other comparable words of a future or forward-looking nature. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent known and unknown uncertainties, risks, changes in circumstances and other factors that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: interest rate risk, including the effects of the recent increase in the benchmark federal funds rate by the Federal Reserve; effects on the U.S. economy resulting from actions taken by the federal government, including the threat or implementation of tariffs, immigration enforcement, executive orders, and changes in foreign policy; fluctuations in the values of the securities held in our securities portfolio, including as the result of changes in interest rates; business and economic conditions generally and in the financial services industry, nationally and within our market area, including the level and impact of inflation, and future monetary policies of the Federal Reserve and executive orders in response thereto, and possible recession; credit risk and risks from concentrations (including by type of borrower, geographic area, collateral and industry) within the Company’s loan portfolio or large loans to certain borrowers (including CRE loans); the overall health of the local and national real estate market; our ability to successfully manage credit risk; our ability to maintain an adequate level of allowance for credit losses on loans; new or revised accounting standards as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board, Securities and Exchange Commission or Public Company Accounting Oversight Board; the concentration of large deposits from certain clients, including those who have balances above current Federal Deposit Insurance Corporation insurance limits; our ability to successfully manage liquidity risk, which may increase our dependence on non-core funding sources such as brokered deposits, and negatively impact our cost of funds; our ability to raise additional capital to implement our business plan; our ability to implement our growth strategy and manage costs effectively; the composition of our senior leadership team and our ability to attract and retain key personnel; talent and labor shortages and employee turnover; the occurrence of fraudulent activity, breaches or failures of our or our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; interruptions involving our information technology and telecommunications systems or third-party servicers; competition in the financial services industry, including from nonbank competitors such as credit unions, “fintech” companies and digital asset service providers; the effectiveness of our risk management framework; rapid technological changes implemented by us and other parties in the financial services industry, including third-party vendors, which may be more difficult to implement or more expensive than anticipated or which may have unforeseen consequences to us and our customers, including the development and implementation of tools incorporating artificial intelligence; emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation, or otherwise materially harm our business or customers; the commencement, cost and outcome of litigation and other legal proceedings and regulatory actions against us; the impact of recent and future legislative and regulatory changes, domestic or foreign; risks related to climate change and the negative impact it may have on our customers and their businesses; the imposition of tariffs or other governmental
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Page 8 of 19 policies impacting the global supply chain and the value of products produced by our commercial borrowers; severe weather, natural disasters, widespread disease or pandemics, acts of war, military
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Page 9 of 19 conflicts, or terrorism, changes in foreign relations, or other adverse external events, including the wars in Iran and Ukraine, ongoing conflicts in the Middle East and other international military conflicts that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, affect global supply chains, increase the volatility of financial markets, and other matters beyond our control; potential impairment to the goodwill the Company recorded in connection with acquisitions; the availability of future equity and debt issuances and other capital raising opportunities on favorable terms; changes to U.S. or state tax laws, regulations and governmental policies concerning the Company’s general business, including changes in interpretation or prioritization of such rules and regulations; the impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update any forward- looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
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Page 10 of 19 Bridgewater Bancshares, Inc. and Subsidiaries Financial Highlights (dollars in thousands, except share data) As of and for the Three Months Ended September 30, June 30, March 31, December 31, September 30, (dollars in thousands) 2026 2026 2026 2025 2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Income Statement Net Interest Income $ 40,658 $ 38,566 $ 36,647 $ 35,687 $ 34,091 Provision for Credit Losses 2,750 550 1,200 1,450 1,100 Noninterest Income 2,573 2,324 9,564 3,148 2,061 Noninterest Expense 21,341 21,894 22,170 20,238 19,956 Net Income 15,028 14,007 17,406 13,334 11,601 Net Income Available to Common Shareholders 14,015 12,993 16,393 12,320 10,588 Per Common Share Data Basic Earnings Per Share $ 0.50 $ 0.47 $ 0.59 $ 0.45 $ 0.38 Diluted Earnings Per Share 0.49 0.45 0.58 0.43 0.38 Adjusted Diluted Earnings Per Share (1) 0.49 0.45 0.41 0.44 0.39 Book Value Per Share 16.98 17.27 16.60 16.23 15.62 Tangible Book Value Per Share (1) 16.33 16.61 15.93 15.55 14.93 Basic Weighted Average Shares Outstanding 27,923,824 27,861,522 27,800,091 27,641,138 27,504,840 Diluted Weighted Average Shares Outstanding 28,796,376 28,589,332 28,490,176 28,354,756 28,190,406 Shares Outstanding at Period End 27,960,252 27,880,830 27,832,867 27,759,970 27,584,732 Financial Ratios Return on Average Assets (2) 1.08% 1.06% 1.35% 0.97% 0.86% Pre-Provision Net Revenue Return on Average Assets (1)(2) 1.57 1.43 1.30 1.35 1.19 Return on Average Shareholders' Equity (2) 10.81 10.17 13.45 10.38 9.47 Return on Average Tangible Common Equity (1)(2) 11.91 11.15 15.13 11.53 10.50 Net Interest Margin (3) 3.09 3.07 2.99 2.75 2.63 Core Net Interest Margin (1)(3) 2.98 2.94 2.86 2.62 2.52 Cost of Total Deposits 2.78 2.80 2.79 2.97 3.19 Cost of Funds 2.92 2.91 2.90 3.07 3.25 Yield on Loans 5.96 5.91 5.81 5.78 5.79 Efficiency Ratio (1) 48.8 53.0 56.3 51.6 54.7 Noninterest Expense to Average Assets (2) 1.53 1.65 1.71 1.48 1.47 Adjusted Financial Ratios (1) Adjusted Return on Average Assets (2) 1.08% 1.06% 0.98% 0.99% 0.88% Adjusted Pre-Provision Net Revenue Return on Average Assets (2) 1.57 1.43 1.37 1.38 1.23 Adjusted Return on Average Shareholders' Equity (2) 10.81 10.17 9.76 10.54 9.77 Adjusted Return on Average Tangible Common Equity (2) 11.91 11.15 10.72 11.72 10.86 Adjusted Efficiency Ratio 48.8 53.0 53.8 50.7 53.2 Adjusted Noninterest Expense to Average Assets (2) 1.53 1.65 1.64 1.45 1.43 Balance Sheet Total Assets $ 5,615,482$ 5,389,726$ 5,335,396$ 5,407,002$ 5,359,994 Total Loans, Gross 4,506,834 4,426,389 4,368,042 4,309,517 4,214,554 Deposits 4,473,019 4,346,204 4,305,511 4,320,369 4,292,764 Total Shareholders' Equity 541,392 547,909 528,424 517,095 497,463 Loan to Deposit Ratio 100.8% 101.8% 101.5% 99.7% 98.2% Core Deposits to Total Deposits (4) 78.5 77.0 78.4 77.6 76.4 Asset Quality Net Loan Charge-Offs to Average Loans (2) 0.21% 0.04% 0.05% 0.11% 0.03% Nonperforming Assets to Total Assets (5) 0.37 0.40 0.22 0.41 0.19 Allowance for Credit Losses to Total Loans 1.28 1.30 1.31 1.31 1.34
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Page 11 of 19 As of and for the Three Months Ended September 30, June 30, March 31, December 31, September 30, (dollars in thousands) 2026 2026 2026 2025 2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Capital Ratios (Consolidated) (6) Tier 1 Leverage Ratio 9.94% 10.02% 9.89% 9.20% 9.02% Common Equity Tier 1 Risk-based Capital Ratio 9.63 9.61 9.53 9.17 9.08 Tier 1 Risk-based Capital Ratio 10.95 10.98 10.94 10.57 10.52 Total Risk-based Capital Ratio 14.24 14.48 14.48 14.12 14.12 Tangible Common Equity to Tangible Assets (1) 8.16 8.62 8.34 8.01 7.71 (1) Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details. (2) Annualized. (3) Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of 21%. (4) Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000. (5) Nonperforming assets are defined as nonaccrual loans plus 90 days past due and still accruing plus foreclosed assets. (6) Preliminary data. Current period subject to change prior to filings with applicable regulatory agencies.
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Page 12 of 19 Bridgewater Bancshares, Inc. and Subsidiaries Consolidated Balance Sheets (dollars in thousands, except share data) September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Assets Cash and Cash Equivalents $ 262,564 $ 169,806 $ 222,154 $ 123,511 $ 131,818 Bank-Owned Certificates of Deposit — — — — 3,658 Securities Available for Sale, at Fair Value 598,713 605,412 566,565 776,441 826,473 Loans, Net of Allowance for Credit Losses 4,440,126 4,360,502 4,302,132 4,244,108 4,149,882 Federal Home Loan Bank (FHLB) Stock, at Cost 21,189 17,979 18,398 21,122 21,373 Premises and Equipment, Net 52,530 52,730 52,784 51,576 50,955 Accrued Interest 16,818 16,946 15,841 18,929 19,244 Goodwill 11,982 11,982 11,982 11,982 11,982 Other Intangible Assets, Net 6,251 6,477 6,703 6,930 7,160 Bank-Owned Life Insurance 72,808 45,671 45,219 46,576 46,121 Other Assets 132,501 102,221 93,618 105,827 91,328 Total Assets $ 5,615,482 $ 5,389,726 $ 5,335,396 $ 5,407,002 $ 5,359,994 Liabilities and Equity Liabilities Deposits: Noninterest Bearing $ 893,817 $ 830,952 $ 828,845 $ 923,070 $ 822,632 Interest Bearing 3,579,202 3,515,252 3,476,666 3,397,299 3,470,132 Total Deposits 4,473,019 4,346,204 4,305,511 4,320,369 4,292,764 FHLB Advances 396,000 326,000 336,000 399,500 404,500 Subordinated Debentures, Net of Issuance Costs 108,953 108,882 108,782 108,677 108,588 Accrued Interest Payable 4,372 2,565 4,254 3,227 5,208 Other Liabilities 91,746 58,166 52,425 58,134 51,471 Total Liabilities 5,074,090 4,841,817 4,806,972 4,889,907 4,862,531 Shareholders' Equity Preferred Stock- $0.01 par value; Authorized 10,000,000 Preferred Stock - Issued and Outstanding 27,600 Series A shares ($2,500 liquidation preference) at September 30, 2026 (unaudited), June 30, 2026 (unaudited), March 31, 2026 (unaudited), December 31, 2025, and September 30, 2025 (unaudited) 66,514 66,514 66,514 66,514 66,514 Common Stock- $0.01 par value; Authorized 75,000,000 Common Stock - Issued and Outstanding 27,960,252 at September 30, 2026 (unaudited), 27,880,830 at June 30, 2026 (unaudited), 27,832,867 at March 31, 2026 (unaudited), 27,759,970 at December 31, 2025, and 27,584,732 at September 30, 2025 (unaudited) 280 279 278 278 276 Additional Paid-In Capital 102,605 100,868 99,564 98,287 97,101 Retained Earnings 394,856 380,841 367,848 351,455 339,135 Accumulated Other Comprehensive Gain (Loss) (22,863) (593) (5,780) 561 (5,563) Total Shareholders' Equity 541,392 547,909 528,424 517,095 497,463 Total Liabilities and Equity $ 5,615,482 $ 5,389,726 $ 5,335,396 $ 5,407,002 $ 5,359,994
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Page 13 of 19 Bridgewater Bancshares, Inc. and Subsidiaries Consolidated Statements of Income (dollars in thousands, except per share data) Three Months Ended Nine Months Ended September 30, June 30, March 31, December 31, September 30,September 30, September 30, 2026 2026 2026 2025 2025 2026 2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Interest Income Loans, Including Fees $ 66,732 $ 64,146 $ 61,726 $ 61,444 $ 60,038 $ 192,604$ 171,746 Investment Securities 7,587 6,904 6,923 9,720 10,371 21,414 28,968 Other 2,326 1,606 1,316 2,145 3,224 5,248 7,825 Total Interest Income 76,645 72,656 69,965 73,309 73,633 219,266 208,539 Interest Expense Deposits 30,943 29,711 28,793 32,203 34,615 89,447 99,215 Federal Funds Purchased — 19 238 5 — 257 16 Notes Payable — — — — 106 — 624 FHLB Advances 2,995 2,494 2,438 3,524 2,933 7,927 7,941 Subordinated Debentures 2,049 1,866 1,849 1,890 1,888 5,764 3,992 Total Interest Expense 35,987 34,090 33,318 37,622 39,542 103,395 111,788 Net Interest Income 40,658 38,566 36,647 35,687 34,091 115,871 96,751 Provision for Credit Losses 2,750 550 1,200 1,450 1,100 4,500 4,600 Net Interest Income After Provision for Credit Losses 37,908 38,016 35,447 34,237 32,991 111,371 92,151 Noninterest Income Customer Service Fees 537 520 527 521 501 1,584 1,492 Net Gain on Sales of Securities — — 7,251 80 59 7,251 534 Letter of Credit Fees 643 304 185 668 383 1,132 1,161 Debit Card Interchange Fees 222 230 201 178 173 653 462 Swap Fees 112 263 240 651 — 615 980 Bank-Owned Life Insurance 530 451 447 455 440 1,428 1,206 Investment Advisory Fees 304 260 213 227 208 778 746 FHLB Prepayment Income — — — — — — 301 Other Income 225 296 500 368 297 1,020 885 Total Noninterest Income 2,573 2,324 9,564 3,148 2,061 14,461 7,767 Noninterest Expense Salaries and Employee Benefits 14,353 13,916 13,492 12,434 12,229 41,761 34,963 Occupancy and Equipment 1,286 1,360 1,375 1,171 1,266 4,021 3,774 FDIC Insurance Assessment 555 595 780 770 775 1,930 1,975 Data Processing 623 692 611 638 637 1,926 1,881 Professional and Consulting Fees 1,127 1,267 1,196 1,404 1,261 3,590 3,365 Derivative Collateral Fees 284 206 168 237 309 658 1,132 Information Technology and Telecommunications 1,183 1,258 1,067 976 973 3,508 2,915 Marketing and Advertising 354 604 776 718 658 1,734 1,420 Intangible Asset Amortization 226 227 226 231 230 679 690 FHLB Prepayment Penalty — — 982 — — 982 — Other Expense 1,350 1,769 1,497 1,659 1,618 4,616 4,918 Total Noninterest Expense 21,341 21,894 22,170 20,238 19,956 65,405 57,033 Income Before Income Taxes 19,140 18,446 22,841 17,147 15,096 60,427 42,885 Provision for Income Taxes 4,112 4,439 5,435 3,813 3,495 13,986 10,131 Net Income 15,028 14,007 17,406 13,334 11,601 46,441 32,754 Preferred Stock Dividends (1,013) (1,014) (1,013) (1,014) (1,013) (3,040) (3,040) Net Income Available to Common Shareholders $ 14,015 $ 12,993 $ 16,393 $ 12,320 $ 10,588 $ 43,401 $ 29,714 Earnings Per Share Basic $ 0.50 $ 0.47 $ 0.59 $ 0.45 $ 0.38 $ 1.56 $ 1.08 Diluted 0.49 0.45 0.58 0.43 0.38 1.52 1.06
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Page 14 of 19 Bridgewater Bancshares, Inc. and Subsidiaries Analysis of Average Balances, Yields and Rates (dollars in thousands, except per share data) (Unaudited) For the Three Months Ended September 30, 2026 June 30, 2026 September 30, 2025 Average Interest Yield/ Average Interest Yield/ Average Interest Yield/ (dollars in thousands) Balance & Fees Rate Balance & Fees Rate Balance & Fees Rate Interest Earning Assets: Cash Investments $ 213,850$ 1,887 3.50%$ 140,738$ 1,167 3.33%$ 256,174$ 2,732 4.23% Investment Securities: Taxable Investment Securities 446,156 5,046 4.49 460,567 5,233 4.56 730,643 9,448 5.13 Tax-Exempt Investment Securities (1) 199,173 3,217 6.41 144,241 2,115 5.88 81,962 1,168 5.66 Total Investment Securities 645,329 8,263 5.08 604,808 7,348 4.87 812,605 10,616 5.18 Loans (1)(2) 4,471,437 67,130 5.96 4,380,477 64,537 5.91 4,132,987 60,317 5.79 Federal Home Loan Bank Stock 19,924 439 8.75 18,692 438 9.39 21,373 492 9.12 Total Interest Earning Assets 5,350,540 77,719 5.76% 5,144,715 73,490 5.73% 5,223,139 74,157 5.63% Noninterest Earning Assets 170,949 172,500 149,304 Total Assets $ 5,521,489 $ 5,317,215 $ 5,372,443 Interest Bearing Liabilities: Deposits: Interest Bearing Transaction Deposits $ 970,042$ 7,995 3.27%$ 931,588$ 7,504 3.23%$ 843,905$ 8,037 3.78% Savings and Money Market Deposits 1,445,197 11,836 3.25 1,436,829 11,650 3.25 1,473,465 13,465 3.63 Time Deposits 291,668 2,726 3.71 230,949 2,089 3.63 342,926 3,703 4.28 Brokered Deposits 844,983 8,386 3.94 843,456 8,468 4.03 856,516 9,410 4.36 Total Interest Bearing Deposits 3,551,890 30,943 3.46 3,442,822 29,711 3.46 3,516,812 34,615 3.90 Federal Funds Purchased — — — 1,901 19 3.90 — — — Notes Payable — — — — — — 5,679 106 7.40 FHLB Advances 368,038 2,995 3.23 340,341 2,494 2.94 404,500 2,933 2.88 Subordinated Debentures 108,918 2,049 7.46 108,835 1,866 6.87 108,639 1,888 6.89 Total Interest Bearing Liabilities 4,028,846 35,987 3.54% 3,893,899 34,090 3.51% 4,035,630 39,542 3.89% Noninterest Bearing Liabilities: Noninterest Bearing Transaction Deposits 864,046 808,295 793,760 Other Noninterest Bearing Liabilities 76,805 62,446 57,184 Total Noninterest Bearing Liabilities 940,851 870,741 850,944 Shareholders' Equity 551,792 552,575 485,869 Total Liabilities and Shareholders' Equity $ 5,521,489 $ 5,317,215 $ 5,372,443 Net Interest Income / Interest Rate Spread 41,732 2.22% 39,400 2.22% 34,615 1.74% Net Interest Margin (3) 3.09% 3.07% 2.63% Taxable Equivalent Adjustment: Tax-Exempt Investment Securities and Loans (1,074) (834) (524) Net Interest Income $ 40,658 $ 38,566 $ 34,091 (1) Interest income and average rates for tax-exempt investment securities and loans are presented on a tax-equivalent basis, assuming a statutory federal income tax rate of 21%. (2) Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs. (3) Net interest margin includes the tax equivalent adjustment and represents the annualized results of: (i) the difference between interest income on interest earning assets and the interest expense on interest bearing liabilities, divided by (ii) average interest earning assets for the period.
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Page 15 of 19 Bridgewater Bancshares, Inc. and Subsidiaries Analysis of Average Balances, Yields and Rates (dollars in thousands, except per share data) (Unaudited) For the Nine Months Ended September 30, 2026 September 30, 2025 Average Interest Yield/ Average Interest Yield/ (dollars in thousands) Balance & Fees Rate Balance & Fees Rate Interest Earning Assets: Cash Investments $ 151,118$ 3,825 3.38%$ 210,525$ 6,469 4.11% Investment Securities: Taxable Investment Securities 470,739 15,809 4.49 744,605 27,364 4.91 Tax-Exempt Investment Securities (1) 154,624 7,096 6.14 49,987 2,030 5.43 Total Investment Securities 625,363 22,905 4.90 794,592 29,394 4.95 Loans (1)(2) 4,396,754 193,769 5.89 4,034,656 172,418 5.71 Federal Home Loan Bank Stock 19,320 1,423 9.85 20,601 1,356 8.80 Total Interest Earning Assets 5,192,555 221,922 5.71% 5,060,374 209,637 5.54% Noninterest Earning Assets 168,954 145,373 Total Assets $ 5,361,509 $ 5,205,747 Interest Bearing Liabilities: Deposits: Interest Bearing Transaction Deposits $ 930,394$ 22,435 3.22%$ 837,504$ 23,995 3.83% Savings and Money Market Deposits 1,431,164 34,909 3.26 1,383,876 38,092 3.68 Time Deposits 258,491 7,148 3.70 333,199 10,280 4.13 Brokered Deposits 831,167 24,955 4.01 841,750 26,848 4.26 Total Interest Bearing Deposits 3,451,216 89,447 3.47 3,396,329 99,215 3.91 Federal Funds Purchased 8,706 257 3.94 456 16 4.64 Notes Payable — — — 11,030 624 7.57 FHLB Advances 348,399 7,927 3.04 388,026 7,941 2.74 Subordinated Debentures 108,829 5,764 7.08 90,853 3,992 5.87 Total Interest Bearing Liabilities 3,917,150 103,395 3.53% 3,886,694 111,788 3.85% Noninterest Bearing Liabilities: Noninterest Bearing Transaction Deposits 835,741 779,897 Other Noninterest Bearing Liabilities 65,455 64,878 Total Noninterest Bearing Liabilities 901,196 844,775 Shareholders' Equity 543,163 474,278 Total Liabilities and Shareholders' Equity $ 5,361,509 $ 5,205,747 Net Interest Income / Interest Rate Spread 118,527 2.19% 97,849 1.69% Net Interest Margin (3) 3.05% 2.59% Taxable Equivalent Adjustment: Tax-Exempt Investment Securities and Loans (2,656) (1,098) Net Interest Income $ 115,871 $ 96,751 (1) Interest income and average rates for tax-exempt investment securities and loans are presented on a tax-equivalent basis, assuming a statutory federal income tax rate of 21%. (2) Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs. (3) Net interest margin includes the tax equivalent adjustment and represents the annualized results of: (i) the difference between interest income on interest earning assets and the interest expense on interest bearing liabilities, divided by (ii) average interest earning assets for the period.
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Page 16 of 19 Bridgewater Bancshares, Inc. and Subsidiaries Asset Quality Summary (unaudited) As of and for the Three Months Ended As of and for the Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands) 2026 2026 2026 2025 2025 2026 2025 Allowance for Credit Losses Balance at Beginning of Period $ 57,418 $ 57,277 $ 56,443 $ 56,390 $ 55,765 $ 56,443 $ 52,277 Provision for Credit Losses 2,750 550 1,350 1,250 900 4,650 4,400 Charge-offs (2,442) (738) (658) (1,259) (276) (3,838) (294) Recoveries 93 329 142 62 1 564 7 Net Charge-offs (2,349) (409) (516) (1,197) (275) (3,274) (287) Balance at End of Period $ 57,819 $ 57,418 $ 57,277 $ 56,443 $ 56,390 $ 57,819 $ 56,390 Allowance for Credit Losses to Total Loans 1.28% 1.30% 1.31% 1.31% 1.34% 1.28% 1.34% As of and for the Three Months Ended As of and for the Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands) 2026 2026 2026 2025 2025 2026 2025 Provision for Credit Losses on Loans and Leases $ 2,750 $ 550 $ 1,350 $ 1,250 $ 900 $ 4,650 $ 4,400 Provision for (Recovery of) Credit Losses for Off-Balance Sheet Credit Exposures — — (150) 200 200 (150) 200 Provision for Credit Losses $ 2,750 $ 550 $ 1,200 $ 1,450 $ 1,100 $ 4,500 $ 4,600 As of and for the Three Months Ended September 30, June 30, March 31, December 31, September 30, (dollars in thousands) 2026 2026 2026 2025 2025 Selected Asset Quality Data Loans 30-89 Days Past Due $ 1,381 $ 871 $ 494 $ 968 $ 2,906 Loans 30-89 Days Past Due to Total Loans 0.03% 0.02% 0.01% 0.02% 0.07% Nonperforming Loans $ 20,937 $ 21,648 $ 11,715 $ 22,034 $ 9,991 Nonperforming Loans to Total Loans 0.46% 0.49% 0.27% 0.51% 0.24% Nonaccrual Loans to Total Loans 0.46 0.49 0.27 0.51 0.24 Nonaccrual Loans and Loans Past Due 90 Days and Still Accruing to Total Loans 0.46 0.49 0.27 0.51 0.24 Nonperforming Assets (1) $ 20,937 $ 21,648 $ 11,715 $ 22,034 $ 9,991 Nonperforming Assets to Total Assets (1) 0.37% 0.40% 0.22% 0.41% 0.19% Net Loan Charge-Offs (Annualized) to Average Loans 0.21 0.04 0.05 0.11 0.03 Watchlist/Special Mention Risk Rating Loans $ 23,607 $ 38,469 $ 47,681 $ 47,823 $ 40,642 Substandard Risk Rating Loans 42,909 43,888 43,074 52,956 58,074 (1) Nonperforming assets are defined as nonaccrual loans plus 90 days past due and still accruing plus foreclosed assets.
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Page 17 of 19 Bridgewater Bancshares, Inc. and Subsidiaries Non-GAAP Financial Measures (unaudited) For the Three Months Ended For the Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands) 2026 2026 2026 2025 2025 2026 2025 Pre-Provision Net Revenue Noninterest Income $ 2,573 $ 2,324 $ 9,564 $ 3,148 $ 2,061 $ 14,461 $ 7,767 Less: Gain on Sales of Securities — — (7,251) (80) (59) (7,251) (534) Less: FHLB Advance Prepayment Income — — — — — — (301) Total Operating Noninterest Income 2,573 2,324 2,313 3,068 2,002 7,210 6,932 Plus: Net Interest Income 40,658 38,566 36,647 35,687 34,091 115,871 96,751 Net Operating Revenue $ 43,231 $ 40,890 $ 38,960 $ 38,755 $ 36,093 $ 123,081 $ 103,683 Noninterest Expense $ 21,341 $ 21,894 $ 22,170 $ 20,238 $ 19,956 $ 65,405 $ 57,033 Total Operating Noninterest Expense $ 21,341 $ 21,894 $ 22,170 $ 20,238 $ 19,956 $ 65,405 $ 57,033 Pre-Provision Net Revenue $ 21,890 $ 18,996 $ 16,790 $ 18,517 $ 16,137 $ 57,676 $ 46,650 Plus: Non-Operating Revenue Adjustments — — 7,251 80 59 7,251 835 Less: Provision for Credit Losses 2,750 550 1,200 1,450 1,100 4,500 4,600 Provision for Income Taxes 4,112 4,439 5,435 3,813 3,495 13,986 10,131 Net Income $ 15,028 $ 14,007 $ 17,406 $ 13,334 $ 11,601 $ 46,441 $ 32,754 Average Assets $ 5,521,489 $ 5,317,215 $ 5,242,761 $ 5,438,555 $ 5,372,443 $ 5,361,509 $ 5,205,747 Pre-Provision Net Revenue Return on Average Assets 1.57% 1.43% 1.30% 1.35% 1.19% 1.44% 1.20% Adjusted Pre-Provision Net Revenue Net Operating Revenue $ 43,231 $ 40,890 $ 38,960 $ 38,755 $ 36,093 $ 123,081 $ 103,683 Noninterest Expense $ 21,341 $ 21,894 $ 22,170 $ 20,238 $ 19,956 $ 65,405 $ 57,033 Less: Merger-related Expenses — — — (346) (530) — (1,635) Less: FHLB Prepayment Penalty — — (982) — — (982) — Adjusted Total Operating Noninterest Expense $ 21,341 $ 21,894 $ 21,188 $ 19,892 $ 19,426 $ 64,423 $ 55,398 Adjusted Pre-Provision Net Revenue $ 21,890 $ 18,996 $ 17,772 $ 18,863 $ 16,667 $ 58,658 $ 48,285 Adjusted Pre-Provision Net Revenue Return on Average Assets 1.57% 1.43% 1.37% 1.38% 1.23% 1.46% 1.24% Core Net Interest Margin Net Interest Income (Tax-equivalent Basis) $ 41,732 $ 39,400 $ 37,395 $ 36,447 $ 34,614 $ 118,527 $ 97,848 Less: Loan Fees (1,367) (1,464) (1,257) (1,041) (966) (4,088) (2,704) Purchase Accounting Accretion: Loan Accretion (171) (171) (324) (546) (380) (666) (1,147) Bond Accretion (18) (17) (22) (33) (89) (57) (819) Bank-Owned Certificates of Deposit Accretion — — — (16) (6) — (17) Deposit Certificates of Deposit Accretion — — — — (13) — (88) Total Purchase Accounting Accretion (189) (188) (346) (595) (488) (723) (2,071) Core Net Interest Income (Tax-equivalent Basis) $ 40,176 $ 37,748 $ 35,792 $ 34,811 $ 33,160 $ 113,716 $ 93,073 Average Interest Earning Assets $ 5,350,540 $ 5,144,715 $ 5,079,430 $ 5,264,700 $ 5,223,139 $ 5,192,555 $ 5,060,374 Core Net Interest Margin 2.98% 2.94% 2.86% 2.62% 2.52% 2.93% 2.46% Core Loan Yield Loan Interest Income (Tax-equivalent Basis) $ 67,130 $ 64,537 $ 62,102 $ 61,746 $ 60,317 $ 193,769 $ 172,418 Less: Loan Fees (1,367) (1,464) (1,257) (1,041) (966) (4,088) (2,704) Loan Accretion (171) (171) (324) (546) (380) (666) (1,147) Core Loan Interest Income $ 65,592 $ 62,902 $ 60,521 $ 60,159 $ 58,971 $ 189,015 $ 168,567 Average Loans $ 4,471,437 $ 4,380,477 $ 4,336,869 $ 4,239,936 $ 4,132,987 $ 4,396,754 $ 4,034,656 Core Loan Yield 5.82% 5.76% 5.66% 5.63% 5.66% 5.75% 5.59%
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Page 18 of 19 Bridgewater Bancshares, Inc. and SubsidiariesNon-GAAP Financial Measures (unaudited) For the Three Months Ended For the Nine Months Ended September 30, June 30, March 31, December 31, September 30, September 30, September 30, (dollars in thousands) 2026 2026 2026 2025 2025 2026 2025 Efficiency Ratio Noninterest Expense $ 21,341 $ 21,894 $ 22,170 $ 20,238 $ 19,956 $ 65,405 $ 57,033 Less: Amortization of Intangible Assets (226) (227) (226) (231) (230) (679) (690) Adjusted Noninterest Expense $ 21,115 $ 21,667 $ 21,944 $ 20,007 $ 19,726 $ 64,726 $ 56,343 Net Interest Income $ 40,658 $ 38,566 $ 36,647 $ 35,687 $ 34,091 $ 115,871 $ 96,751 Noninterest Income 2,573 2,324 9,564 3,148 2,061 14,461 7,767 Less: Gain on Sales of Securities — — (7,251) (80) (59) (7,251) (534) Adjusted Operating Revenue $ 43,231 $ 40,890 $ 38,960 $ 38,755 $ 36,093 $ 123,081 $ 103,984 Efficiency Ratio 48.8% 53.0% 56.3% 51.6% 54.7% 52.6% 54.2% Adjusted Efficiency Ratio Noninterest Expense $ 21,341 $ 21,894 $ 22,170 $ 20,238 $ 19,956 $ 65,405 $ 57,033 Less: Amortization of Intangible Assets (226) (227) (226) (231) (230) (679) (690) Less: Merger-related Expenses — — — (346) (530) — (1,635) Less: FHLB Advance Prepayment Penalty — — (982) — — (982) — Adjusted Noninterest Expense $ 21,115 $ 21,667 $ 20,962 $ 19,661 $ 19,196 $ 63,744 $ 54,708 Net Interest Income $ 40,658 $ 38,566 $ 36,647 $ 35,687 $ 34,091 $ 115,871 $ 96,751 Noninterest Income 2,573 2,324 9,564 3,148 2,061 14,461 7,767 Less: Gain on Sales of Securities — — (7,251) (80) (59) (7,251) (534) Less: FHLB Advance Prepayment Income — — — — — — (301) Adjusted Operating Revenue $ 43,231 $ 40,890 $ 38,960 $ 38,755 $ 36,093 $ 123,081 $ 103,683 Adjusted Efficiency Ratio 48.8% 53.0% 53.8% 50.7% 53.2% 51.8% 52.8% Adjusted Noninterest Expense to Average Assets (Annualized) Noninterest Expense $ 21,341 $ 21,894 $ 22,170 $ 20,238 $ 19,956 $ 65,405 $ 57,033 Less: Merger-related Expenses — — — (346) (530) — (1,635) Less: FHLB Advance Prepayment Penalty — — (982) — — (982) — Adjusted Noninterest Expense $ 21,341 $ 21,894 $ 21,188 $ 19,892 $ 19,426 $ 64,423 $ 55,398 Average Assets $ 5,521,489 $ 5,317,215 $ 5,242,761 $ 5,438,555 $ 5,372,443 $ 5,361,509 $ 5,205,747 Adjusted Noninterest Expense to Average Assets (Annualized) 1.53% 1.65% 1.64% 1.45% 1.43% 1.61% 1.42% Tangible Common Equity and Tangible Common Equity/Tangible Assets Total Shareholders' Equity $ 541,392 $ 547,909 $ 528,424 $ 517,095 $ 497,463 Less: Preferred Stock (66,514) (66,514) (66,514) (66,514) (66,514) Total Common Shareholders' Equity 474,878 481,395 461,910 450,581 430,949 Less: Intangible Assets (18,233) (18,459) (18,685) (18,912) (19,142) Tangible Common Equity $ 456,645 $ 462,936 $ 443,225 $ 431,669 $ 411,807 Total Assets $ 5,615,482 $ 5,389,726 $ 5,335,396 $ 5,407,002 $ 5,359,994 Less: Intangible Assets (18,233) (18,459) (18,685) (18,912) (19,142) Tangible Assets $ 5,597,249 $ 5,371,267 $ 5,316,711 $ 5,388,090 $ 5,340,852 Tangible Common Equity/Tangible Assets 8.16% 8.62% 8.34% 8.01% 7.71% Tangible Book Value Per Share Book Value Per Common Share $ 16.98 $ 17.27 $ 16.60 $ 16.23 $ 15.62 Less: Effects of Intangible Assets (0.65) (0.66) (0.67) (0.68) (0.69) Tangible Book Value Per Common Share $ 16.33 $ 16.61 $ 15.93 $ 15.55 $ 14.93 Return on Average Tangible Common Equity Net Income Available to Common Shareholders $ 14,015 $ 12,993 $ 16,393 $ 12,320 $ 10,588 $ 43,401 $ 29,714 Average Shareholders' Equity $ 551,792 $ 552,575 $ 524,825 $ 509,655 $ 485,869 $ 543,163 $ 474,278 Less: Average Preferred Stock (66,514) (66,514) (66,514) (66,514) (66,514) (66,514) (66,514) Average Common Equity 485,278 486,061 458,311 443,141 419,355 476,649 407,764 Less: Effects of Average Intangible Assets (18,361) (18,588) (18,816) (19,042) (19,274) (18,587) (19,504) Average Tangible Common Equity $ 466,917 $ 467,473 $ 439,495 $ 424,099 $ 400,081 $ 458,062 $ 388,260 Return on Average Tangible Common Equity 11.91% 11.15% 15.13% 11.53% 10.50% 12.67% 10.23%
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Page 19 of 19 Bridgewater Bancshares, Inc. and SubsidiariesNon-GAAP Financial Measures (unaudited) For the Three Months Ended For the Nine Months Ended September 30, June 30, March 31, December 31,September 30,September 30,September 30, (dollars in thousands) 2026 2026 2026 2025 2025 2026 2025 Adjusted Diluted Earnings Per Common Share Net Income Available to Common Shareholders $ 14,015 $ 12,993 $ 16,393 $ 12,320$ 10,588$ 43,401$ 29,714 Add: Merger-related Expenses — — — 346 530 — 1,635 Add: FHLB Advance Prepayment Penalty — — 982 — — 982 — Less: FHLB Advance Prepayment Income — — — — — — (301) Less: Gain on Sales of Securities — — (7,251) (80) (59) (7,251) (534) Total Adjustments — — (6,269) 266 471 (6,269) 800 Less: Tax Impact of Adjustments — — 1,492 (59) (110) 1,448 (189) Adjusted Net Income Available to Common Shareholders$ 14,015 $ 12,993 $ 11,616 $ 12,527$ 10,949$ 38,580$ 30,325 Diluted Weighted Average Shares Outstanding 28,796,376 28,589,332 28,490,176 28,354,756 28,190,406 28,644,219 28,089,409 Adjusted Diluted Earnings Per Common Share $ 0.49 $ 0.45 $ 0.41 $ 0.44 $ 0.39 $ 1.35 $ 1.08 Adjusted Return on Average Assets Net Income $ 15,028 $ 14,007 $ 17,406 $ 13,334$ 11,601$ 46,441$ 32,754 Add: Total Adjustments — — (6,269) 266 471 (6,269) 800 Less: Tax Impact of Adjustments — — 1,492 (59) (110) 1,448 (189) Adjusted Net Income $ 15,028 $ 14,007 $ 12,629 $ 13,541$ 11,962$ 41,620$ 33,365 Average Assets $ 5,521,489$ 5,317,215$ 5,242,761$ 5,438,555$ 5,372,443$ 5,361,509$ 5,205,747 Adjusted Return on Average Assets 1.08% 1.06% 0.98% 0.99% 0.88% 1.04% 0.86% Adjusted Return on Average Shareholders' Equity Adjusted Net Income $ 15,028 $ 14,007 $ 12,629 $ 13,541$ 11,962$ 41,620$ 33,365 Average Shareholders' Equity $ 551,792$ 552,575$ 524,825$ 509,655$ 485,869$ 543,163$ 474,278 Adjusted Return on Average Shareholders' Equity 10.81% 10.17% 9.76% 10.54% 9.77% 10.24% 9.41% Adjusted Return on Average Tangible Common Equity Adjusted Net Income Available to Common Shareholders $ 14,015 $ 12,993 $ 11,616 $ 12,527$ 10,949$ 38,580$ 30,325 Average Tangible Common Equity $ 466,917$ 467,473$ 439,495$ 424,099$ 400,081$ 458,062$ 388,260 Adjusted Return on Average Tangible Common Equity 11.91% 11.15% 10.72% 11.72% 10.86% 11.26% 10.44%