BWBBP · Bridgewater Bancshares, Inc.

Bridgewater Bancshares delivered strong first quarter 2026 results with net income of $17.4 million, representing a significant increase from both the prior quarter and year-ago period. The earnings improvement was primarily driven by net interest margin expansion, which increased 24 basis points to 2.99% due to lower deposit costs and higher loan yields following interest rate cuts in late 2025. Net interest income grew to $36.6 million, supported by loan portfolio growth and reduced funding costs. A key strategic action during the quarter was the sale of $208.5 million in securities, generating a $7.3 million pre-tax gain that contributed to noninterest income of $9.6 million. Management highlighted these balance sheet efficiency moves as positioning the company for improved forward profitability. Asset quality showed improvement with nonperforming assets declining to 0.22% of total assets from 0.41% in the prior quarter. The company also strengthened its capital position, with the Common Equity Tier 1 ratio increasing to 9.53% from 9.17% at year-end 2025. Chairman and CEO Jerry Baack noted the quarter was highlighted by significant net interest margin expansion, continued loan and core deposit growth, and strong asset quality, with teams working to build relationships that support growth initiatives and drive value for clients and shareholders.