Bridgewater Bancshares, Inc. Announces Third Quarter 2025 Financial Results

Bridgewater Bancshares, Inc. Announces Third Quarter 2025 Financial Results Third Quarter 2025 Highlights Net income of $11.6 million, or $0.38 per diluted common share; adjusted net income of $12.0 million, or $0.39 per diluted common share.(1) Net interest income increased $1.6 million, or 5.1%, from the second quarter of 2025. Net interest margin (on a fully tax-equivalent basis) of 2.63% for the third quarter of 2025, an increase of one basis point from the second quarter of 2025. Gross loans increased by $68.8 million, or 6.6% annualized, from the second quarter of 2025. Total deposits increased by $56.0 million, or 5.2% annualized, from the second quarter of 2025; core deposits(2) increased by $92.1 million, or 11.5% annualized, from the second quarter of 2025. Efficiency ratio(1) of 54.7%, up from 52.6% for the second quarter of 2025; adjusted efficiency ratio(1) of 53.2%, up from 51.5% for the second quarter of 2025. Annualized net loan charge-offs as a percentage of average loans of 0.03%, compared to 0.00% for the second quarter of 2025. Nonperforming assets to total assets of 0.19% at September 30, 2025, stable with 0.19% at June 30, 2025. Tangible book value per share(1) of $14.93 at September 30, 2025, an increase of 20.0% annualized, from the second quarter of 2025. Successfully completed the systems conversion of the First Minnetonka City Bank (“FMCB”) acquisition. Planned branch closure in December 2025 of one of the two branches acquired from FMCB in 2024. (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. Bridgewater Bancshares, Inc. (Nasdaq: BWB) (“the Company”), the parent company of Bridgewater Bank (“the Bank”), today announced net income of $11.6 million for the third quarter of 2025, compared to $11.5 million for the second quarter of 2025, and $8.7 million for the third quarter of 2024. Earnings per diluted common share were $0.38 for the third quarter of 2025, compared to $0.38 for the second quarter of 2025, and $0.27 for the third quarter of 2024. Adjusted net income, a non-GAAP financial measure, was $12.0 million for the third quarter of 2025, compared to $11.3 million for the second quarter of 2025, and $8.9 million for the third quarter of 2024. Adjusted earnings per diluted common share, a non-GAAP financial measure, were $0.39 for the third quarter of 2025, compared to $0.37 for the second quarter of 2025, and $0.28 for the third quarter of 2024. “Bridgewater produced another quarter of strong net interest income growth as we continued to execute on our strategic priority of gaining both loan and deposit market share,” said Chairman and Chief Executive Officer, Jerry Baack. “Robust core deposit growth supported strong loan growth during the quarter as our loan pipelines remained near three-year highs, we continued to gain traction in the affordable housing space, and talent and client opportunities from M&A disruption in the Twin Cities remained plentiful. Meanwhile, our liability-sensitive balance sheet remains well positioned to benefit from the September interest rate cut and a rates-down environment. “The third quarter was also highlighted by strong asset quality, consistent tangible book value per share growth, the launch of a new retail and small business online banking platform, and the successful systems conversion of our recent acquisition of First Minnetonka City Bank. With a favorable outlook for continued balance sheet growth and net interest margin expansion from here, we are poised for improved profitability trends moving forward.” 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, 2025 2025 2024 2025 2024 Per Common Share Data Basic Earnings Per Share $ 0.38 $ 0.38 $ 0.28 $ 1.08 $ 0.79 Diluted Earnings Per Share 0.38 0.38 0.27 1.06 0.77 Adjusted Diluted Earnings Per Share(1) 0.39 0.37 0.28 1.08 0.77 Book Value Per Share 15.62 14.92 14.06 15.62 14.06 Tangible Book Value Per Share(1) 14.93 14.21 13.96 14.93 13.96 Financial Ratios Return on Average Assets(2) 0.86 % 0.90 % 0.73 % 0.84 % 0.71 % Pre-Provision Net Revenue Return on Average Assets(1)(2) 1.19 1.27 0.96 1.20 0.95 Return on Average Shareholders' Equity(2) 9.47 9.80 7.79 9.23 7.55 Return on Average Tangible Common Equity (1)(2) 10.50 10.93 8.16 10.23 7.87 Net Interest Margin (3) 2.63 2.62 2.24 2.59 2.24 Core Net Interest Margin(1)(3) 2.52 2.49 2.16 2.46 2.17 Cost of Total Deposits 3.19 3.16 3.58 3.18 3.45 Cost of Funds 3.25 3.19 3.54 3.20 3.46 Efficiency Ratio (1) 54.7 52.6 58.0 54.2 58.3 Noninterest Expense to Average Assets(2) 1.47 1.47 1.33 1.46 1.34 Tangible Common Equity to Tangible Assets(1) 7.71 7.40 8.17 7.71 8.17 Common Equity Tier 1 Risk-based Capital Ratio (Consolidated)(4) 9.08 9.03 9.79 9.08 9.79 Adjusted Financial Ratios(1) Adjusted Return on Average Assets(2) 0.88 % 0.88 % 0.75 % 0.86 % 0.70 % Adjusted Pre-Provision Net Revenue Return on Average Assets(2) 1.23 1.31 0.98 1.24 0.96 Adjusted Return on Average Shareholders' Equity(2) 9.77 9.64 7.96 9.41 7.51 Adjusted Return on Average Tangible Common Equity(2) 10.86 10.74 8.36 10.44 7.82 Adjusted Efficiency Ratio 53.2 51.5 57.2 52.8 58.0 Adjusted Noninterest Expense to Average Assets(2) 1.43 1.43 1.31 1.42 1.33 Balance Sheet and Asset Quality (dollars in thousands) Total Assets $ 5,359,994 $ 5,296,673 $ 4,691,517 $ 5,359,994 $ 4,691,517 Total Loans, Gross 4,214,554 4,145,799 3,685,590 4,214,554 3,685,590 Deposits 4,292,764 4,236,742 3,747,442 4,292,764 3,747,442 Loan to Deposit Ratio 98.2 % 97.9 % 98.3 % 98.2 % 98.3 % Net Loan Charge-Offs to Average Loans(2) 0.03 0.00 0.10 0.01 0.03 Nonperforming Assets to Total Assets (5) 0.19 0.19 0.19 0.19 0.19 Allowance for Credit Losses to Total Loans 1.34 1.35 1.38 1.34 1.38 ____________________________(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. Income Statement Net Interest Margin and Net Interest Income Net interest margin (on a fully tax-equivalent basis) for the third quarter of 2025 was 2.63%, a one basis point increase from 2.62% in the second quarter of 2025, and a 39 basis point increase from 2.24% in the third quarter of 2024. 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 FMCB, was 2.52% for the third quarter of 2025, a three basis point increase from 2.49% in the second quarter of 2025, and a 36 basis point increase from 2.16% in the third quarter of 2024. Net interest margin expanded to 2.63% in the third quarter of 2025 primarily due to higher earning asset yields, offset partially by the subordinated debt refinance in the second quarter of 2025, higher cash balances, and declining purchase accounting accretion income. Net interest income was $34.1 million for the third quarter of 2025, an increase of $1.6 million from $32.5 million in the second quarter of 2025, and an increase of $8.5 million from $25.6 million in the third quarter of 2024. The linked-quarter increase in net interest income was primarily due to growth in the loan and securities portfolios, offset partially by higher deposit balances.The year-over-year increase in net interest income was primarily due to growth in the loan portfolio and purchase accounting accretion, offset partially by higher deposit balances. Interest income was $73.6 million for the third quarter of 2025, an increase of $4.4 million from $69.2 million in the second quarter of 2025, and an increase of $10.6 million from $63.0 million in the third quarter of 2024. The yield on interest earning assets (on a fully tax-equivalent basis) was 5.63% in the third quarter of 2025, compared to 5.56% in the second quarter of 2025, and 5.48% in the third quarter of 2024.The linked-quarter increase in the yield on interest earning assets was primarily due to growth and repricing of the loan and securities portfolios.The year-over-year increase in the yield on interest earning assets was primarily due to growth and repricing of the loan and securities portfolios and purchase accounting accretion.The aggregate loan yield increased to 5.79% in the third quarter of 2025, five basis points higher than 5.74% in the second quarter of 2025, and 22 basis points higher than 5.57% in the third quarter of 2024.Core loan yield, a non-GAAP financial measure, increased to 5.66% in the third quarter of 2025, seven basis points higher than 5.59% in the second quarter of 2025, and 19 basis points higher than 5.47% in the third quarter of 2024. A summary of interest and fees recognized on loans for the periods indicated is as follows: Three Months Ended September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Interest 5.66 % 5.59 % 5.50 % 5.47 % 5.47 % Fees 0.09 0.11 0.07 0.08 0.10 Accretion 0.04 0.04 0.04 — — Yield on Loans 5.79 % 5.74 % 5.61 % 5.55 % 5.57 % Interest expense was $39.5 million for the third quarter of 2025, an increase of $2.8 million from $36.7 million in the second quarter of 2025, and an increase of $2.1 million from $37.4 million in the third quarter of 2024. The cost of interest bearing liabilities was 3.89% in the third quarter of 2025, compared to 3.83% in the second quarter of 2025, and 4.27% in the third quarter of 2024.The linked-quarter increase in the cost of interest bearing liabilities was primarily due to higher interest bearing deposit balances and higher balances and rates paid on subordinated debentures following the payoff of $50.0 million of outstanding subordinated notes and the issuance of $80.0 million of new subordinated notes at the end of the second quarter.The year-over-year decrease in the cost of interest bearing liabilities was primarily due to lower interest bearing deposit costs, offset partially by higher balances and rates paid on FHLB advances and subordinated debentures. Interest expense on deposits was $34.6 million for the third quarter of 2025, an increase of $2.1 million from $32.5 million in the second quarter of 2025, and an increase of $428,000 from $34.2 million in the third quarter of 2024. The cost of total deposits was 3.19% in the third quarter of 2025, three basis points higher than 3.16% in the second quarter of 2025, and 39 basis points lower than 3.58% in the third quarter of 2024.The linked-quarter increase in the cost of total deposits was primarily due to time and brokered deposits repricing in the higher rate environment.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 2024 and 2025 and decreases in average brokered deposit balances. Provision for Credit Losses The provision for credit losses on loans and leases was $900,000 for the third quarter of 2025, compared to $2.0 million for the second quarter of 2025 and $-0- for the third quarter of 2024. The provision for credit losses on loans recorded in the third quarter of 2025 was primarily attributable to growth in the loan portfolio and an increase in specific reserves for loans individually evaluated.The allowance for credit losses on loans to total loans was 1.34% at September 30, 2025, compared to 1.35% at June 30, 2025, and 1.38% at September 30, 2024. The provision for credit losses for off-balance sheet credit exposures was $200,000 for the third quarter of 2025, and $-0- for each of the second quarter of 2025 and the third quarter of 2024. A provision was recorded during the third quarter of 2025 due to an increase in the volume of newly originated loans with unfunded commitments in the commercial and construction and land development segments. Noninterest Income Noninterest income was $2.1 million for the third quarter of 2025, a decrease of $1.6 million from $3.6 million for the second quarter of 2025, and an increase of $539,000 from $1.5 million for the third quarter of 2024. The linked-quarter decrease was primarily due to lower swap fees, gains on sales of securities, and FHLB prepayment income.The year-over-year increase was primarily due to higher investment advisory fees and customer service fees. Noninterest Expense Noninterest expense was $20.0 million for the third quarter of 2025, an increase of $1.0 million from $18.9 million for the second quarter of 2025 and an increase of $4.2 million from $15.8 million for the third quarter of 2024. Noninterest expense for the third quarter of 2025 included $530,000 of merger-related expenses associated with the acquisition of FMCB, compared to $540,000 for the second quarter of 2025.The linked-quarter increase was primarily due to increases in salaries and employee benefits, marketing and advertising, and professional and consulting fees.The year-over-year increase was primarily attributable to increases in salaries and employee benefits, marketing and advertising, operating costs related to the FMCB acquisition, and merger-related expenses.The efficiency ratio, a non-GAAP financial measure, was 54.7% for the third quarter of 2025, compared to 52.6% for the second quarter of 2025, and 58.0% for the third quarter of 2024.The Company had 325 full-time equivalent employees at September 30, 2025, compared to 308 at June 30, 2025, and 265 at September 30, 2024. The year-over-year increase was largely driven by the addition of employees from the acquisition of FMCB and the hiring of key talent across the organization. Income Taxes The effective combined federal and state income tax rate was 23.2% for the third quarter of 2025, compared to 23.9% for the second quarter of 2025, and 23.6% for the third quarter of 2024. Balance Sheet Loans (dollars in thousands) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Commercial $ 533,476 $ 549,259 $ 528,801 $ 497,662 $ 493,403 Leases 43,186 44,817 43,958 44,291 — Construction and Land Development 159,991 136,438 128,073 97,255 118,596 1-4 Family Construction 41,739 39,095 39,438 41,961 45,822 Real Estate Mortgage: 1 - 4 Family Mortgage 487,297 474,269 479,461 474,383 421,179 Multifamily 1,578,223 1,555,731 1,534,747 1,425,610 1,379,814 CRE Owner Occupied 192,966 192,837 196,080 191,248 182,239 CRE Nonowner Occupied 1,158,622 1,137,007 1,055,157 1,083,108 1,032,142 Total Real Estate Mortgage Loans 3,417,108 3,359,844 3,265,445 3,174,349 3,015,374 Consumer and Other 19,054 16,346 14,361 12,996 12,395 Total Loans, Gross 4,214,554 4,145,799 4,020,076 3,868,514 3,685,590 Allowance for Credit Losses on Loans (56,390 ) (55,765 ) (53,766 ) (52,277 ) (51,018 ) Net Deferred Loan Fees (8,282 ) (7,629 ) (7,218 ) (6,801 ) (5,705 ) Total Loans, Net $ 4,149,882 $ 4,082,405 $ 3,959,092 $ 3,809,436 $ 3,628,867 Total gross loans at September 30, 2025 were $4.21 billion, an increase of $68.8 million, or 6.6% annualized, over total gross loans of $4.15 billion at June 30, 2025, and an increase of $529.0 million, or 14.4%, over total gross loans of $3.69 billion at September 30, 2024. The increase in the loan portfolio during the third quarter of 2025 was due to strong loan originations and lower loan payoffs and paydowns. Deposits (dollars in thousands) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Noninterest Bearing Transaction Deposits $ 822,632 $ 787,868 $ 791,528 $ 800,763 $ 713,309 Interest Bearing Transaction Deposits 860,774 791,748 840,378 862,242 805,756 Savings and Money Market Deposits 1,428,726 1,441,694 1,372,191 1,259,503 980,345 Time Deposits 346,214 344,882 326,821 338,506 347,080 Brokered Deposits 834,418 870,550 831,539 825,753 900,952 Total Deposits $ 4,292,764 $ 4,236,742 $ 4,162,457 $ 4,086,767 $ 3,747,442 Total deposits at September 30, 2025 were $4.29 billion, an increase of $56.0 million, or 5.2% annualized, over total deposits of $4.24 billion at June 30, 2025, and an increase of $545.3 million, or 14.6%, over total deposits of $3.75 billion at September 30, 2024. Core deposits, defined as total deposits excluding brokered deposits and certificates of deposits greater than $250,000, increased $92.1 million, or 11.5% annualized, from the second quarter of 2025, and increased $600.2 million, or 22.4%, from the third quarter of 2024. 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 0.03%, compared to 0.00% for the second quarter of 2025, and 0.10% for the third quarter of 2024.At September 30, 2025, the Company’s nonperforming assets, which include nonaccrual loans, loans past due 90 days and still accruing, and foreclosed assets, were $10.0 million, or 0.19% of total assets, compared to $10.3 million, or 0.19% of total assets, at June 30, 2025, and $8.8 million, or 0.19% of total assets, at September 30, 2024.Loans with potential weaknesses that warranted a watch/special mention risk rating at September 30, 2025 totaled $40.6 million, compared to $53.3 million at June 30, 2025, and $32.0 million at September 30, 2024.Loans that warranted a substandard risk rating at September 30, 2025 totaled $58.1 million, compared to $45.0 million at June 30, 2025, and $31.6 million at September 30, 2024.The linked-quarter increase in loans that warranted a substandard risk rating was primarily due to one loan that migrated from special mention to substandard. Capital Total shareholders’ equity at September 30, 2025 was $497.5 million, an increase of $21.2 million, or 17.6% annualized, compared to total shareholders’ equity of $476.3 million at June 30, 2025, and an increase of $45.3 million, or 10.0%, over total shareholders’ equity of $452.2 million at September 30, 2024. The linked-quarter increase was primarily due to net income retained and a decrease in unrealized losses in the securities portfolio, offset partially by a decrease in unrealized gains in the derivatives portfolio and preferred stock dividends.The year-over-year increase was primarily due to net income retained and a decrease in unrealized losses in the securities portfolio, offset partially by a decrease in unrealized gains in the derivatives portfolio, preferred stock dividends, and stock repurchases.The Consolidated Common Equity Tier 1 Risk-Based Capital Ratio was 9.08% at September 30, 2025, compared to 9.03% at June 30, 2025, and 9.79% at September 30, 2024.Tangible common equity as a percentage of tangible assets, a non-GAAP financial measure, was 7.71% at September 30, 2025, compared to 7.40% at June 30, 2025, and 8.17% at September 30, 2024. Tangible book value per share, a non-GAAP financial measure, was $14.93 as of September 30, 2025, an increase of 20.0% annualized from $14.21 as of June 30, 2025, and an increase of 6.9% from $13.96 as of September 30, 2024. The Company did not repurchase any shares of its common stock during the third quarter of 2025. The Company had $13.1 million remaining under its current share repurchase authorization at September 30, 2025. 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, 2025 to shareholders of record of the Series A Preferred Stock at the close of business on November 14, 2025. Conference Call and Webcast The Company will host a conference call to discuss its third quarter 2025 financial results on Wednesday, October 22, 2025 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 877-344-7529 and enter access code 1563263. The replay will be available through October 29, 2025. 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 also received numerous awards for its banking services and esteemed corporate culture. With total assets of $5.4 billion and nine strategically located branches as of September 30, 2025, 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. 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 meaning of the safe harbor provisions of the U.S. 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 uncertainties, risks and changes in circumstances 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 changes in interest rates; effects on the U.S. economy resulting from the threat or implementation of new, or changes to, existing policies, regulations, regulatory and governmental agencies and executive orders, including with respect to tariffs, immigration, DEI and ESG initiatives, consumer protection, foreign policy, and tax regulations; 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, including future monetary policies of the Federal Reserve in response thereto, and possible recession; the effects of developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in several bank failures; credit risk and risks from concentrations (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 consequence to us and our customers, including the development and implementation of tools incorporating artificial intelligence; 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 policies impacting the global supply chain and the value of products produced by our commercial borrowers; severe weather, natural disasters, wide spread disease or pandemics, acts of war or terrorism or other adverse external events, including ongoing conflicts in the Middle East and the Russian invasion of Ukraine; potential impairment to the goodwill the Company recorded in connection with acquisitions; risks associated with our integration of FMCB, including the possibility that the merger may be more difficult or expensive to integrate than anticipated, and the effect of the merger on the Company’s customer and employee relationships and operating results; 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; the effects of the current U.S. government shutdown and its impact on our customers; 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. 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) 2025 2025 2025 2024 2024 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Income Statement Net Interest Income $ 34,091 $ 32,452 $ 30,208 $ 26,967 $ 25,599 Provision for Credit Losses 1,100 2,000 1,500 2,175 — Noninterest Income 2,061 3,627 2,079 2,533 1,522 Noninterest Expense 19,956 18,941 18,136 16,812 15,760 Net Income 11,601 11,520 9,633 8,204 8,675 Net Income Available to Common Shareholders 10,588 10,506 8,620 7,190 7,662 Per Common Share Data Basic Earnings Per Share $ 0.38 $ 0.38 $ 0.31 $ 0.26 $ 0.28 Diluted Earnings Per Share 0.38 0.38 0.31 0.26 0.27 Adjusted Diluted Earnings Per Share(1) 0.39 0.37 0.32 0.27 0.28 Book Value Per Share 15.62 14.92 14.60 14.21 14.06 Tangible Book Value Per Share(1) 14.93 14.21 13.89 13.49 13.96 Basic Weighted Average Shares Outstanding 27,504,840 27,460,982 27,568,772 27,459,433 27,382,798 Diluted Weighted Average Shares Outstanding 28,190,406 27,998,008 28,036,506 28,055,532 27,904,910 Shares Outstanding at Period End 27,584,732 27,470,283 27,560,150 27,552,449 27,425,690 Financial Ratios Return on Average Assets(2) 0.86 % 0.90 % 0.77 % 0.68 % 0.73 % Pre-Provision Net Revenue Return on Average Assets(1)(2) 1.19 1.27 1.13 1.05 0.96 Return on Average Shareholders' Equity(2) 9.47 9.80 8.39 7.16 7.79 Return on Average Tangible Common Equity(1)(2) 10.50 10.93 9.22 7.43 8.16 Net Interest Margin (3) 2.63 2.62 2.51 2.32 2.24 Core Net Interest Margin(1)(3) 2.52 2.49 2.37 2.24 2.16 Cost of Total Deposits 3.19 3.16 3.18 3.40 3.58 Cost of Funds 3.25 3.19 3.17 3.38 3.54 Efficiency Ratio (1) 54.7 52.6 55.5 56.8 58.0 Noninterest Expense to Average Assets(2) 1.47 1.47 1.45 1.40 1.33 Adjusted Financial Ratios(1) Adjusted Return on Average Assets 0.88 % 0.88 % 0.80 % 0.71 % 0.75 % Adjusted Pre-Provision Net Revenue Return on Average Assets(2) 1.23 1.31 1.18 1.09 0.98 Adjusted Return on Average Shareholders' Equity 9.77 9.64 8.77 7.49 7.96 Adjusted Return on Average Tangible Common Equity 10.86 10.74 9.68 7.82 8.36 Adjusted Efficiency Ratio 53.2 51.5 53.7 55.2 57.2 Adjusted Noninterest Expense to Average Assets 1.43 1.43 1.41 1.36 1.31 Balance Sheet Total Assets $ 5,359,994 $ 5,296,673 $ 5,136,808 $ 5,066,242 $ 4,691,517 Total Loans, Gross 4,214,554 4,145,799 4,020,076 3,868,514 3,685,590 Deposits 4,292,764 4,236,742 4,162,457 4,086,767 3,747,442 Total Shareholders' Equity 497,463 476,282 468,975 457,935 452,200 Loan to Deposit Ratio 98.2 % 97.9 % 96.6 % 94.7 % 98.3 % Core Deposits to Total Deposits(4) 76.4 75.2 76.2 76.0 71.5 Asset Quality Net Loan Charge-Offs to Average Loans (2) 0.03 % 0.00 % 0.00 % 0.03 % 0.10 % Nonperforming Assets to Total Assets(5) 0.19 0.19 0.20 0.01 0.19 Allowance for Credit Losses to Total Loans 1.34 1.35 1.34 1.35 1.38 As of and for the Three Months Ended September 30, June 30, March 31, December 31, September 30, (dollars in thousands) 2025 2025 2025 2024 2024 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Capital Ratios (Consolidated)(6) Tier 1 Leverage Ratio 9.02 % 9.14 % 9.10 % 9.45 % 9.75 % Common Equity Tier 1 Risk-based Capital Ratio 9.08 9.03 9.03 9.08 9.79 Tier 1 Risk-based Capital Ratio 10.52 10.51 10.55 10.64 11.44 Total Risk-based Capital Ratio 14.12 14.17 13.62 13.76 14.62 Tangible Common Equity to Tangible Assets(1) 7.71 7.40 7.48 7.36 8.17 _____________________________(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. Bridgewater Bancshares, Inc. and Subsidiaries Consolidated Balance Sheets (dollars in thousands, except share data) September 30, June 30, March 31, December 31, September 30, 2025 2025 2025 2024 2024 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Assets Cash and Cash Equivalents $ 131,818 $ 217,495 $ 166,205 $ 229,760 $ 191,859 Bank-Owned Certificates of Deposit 3,658 3,897 4,139 4,377 — Securities Available for Sale, at Fair Value 826,473 743,889 764,626 768,247 664,715 Loans, Net of Allowance for Credit Losses 4,149,882 4,082,405 3,959,092 3,809,436 3,628,867 Federal Home Loan Bank (FHLB) Stock, at Cost 21,373 21,472 18,984 19,297 18,626 Premises and Equipment, Net 50,955 49,979 49,442 49,533 47,777 Foreclosed Assets — 185 — — 434 Accrued Interest 19,244 17,711 17,700 17,711 16,750 Goodwill 11,982 11,982 11,982 11,982 2,626 Other Intangible Assets, Net 7,160 7,390 7,620 7,850 163 Bank-Owned Life Insurance 46,121 45,413 45,025 44,646 38,219 Other Assets 91,328 94,855 91,993 103,403 81,481 Total Assets $ 5,359,994 $ 5,296,673 $ 5,136,808 $ 5,066,242 $ 4,691,517 Liabilities and Equity Liabilities Deposits: Noninterest Bearing $ 822,632 $ 787,868 $ 791,528 $ 800,763 $ 713,309 Interest Bearing 3,470,132 3,448,874 3,370,929 3,286,004 3,034,133 Total Deposits 4,292,764 4,236,742 4,162,457 4,086,767 3,747,442 Notes Payable — 13,750 13,750 13,750 13,750 FHLB Advances 404,500 404,500 349,500 359,500 349,500 Subordinated Debentures, Net of Issuance Costs 108,588 108,689 79,766 79,670 79,574 Accrued Interest Payable 5,208 4,110 4,525 4,008 3,458 Other Liabilities 51,471 52,600 57,835 64,612 45,593 Total Liabilities 4,862,531 4,820,391 4,667,833 4,608,307 4,239,317 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, 2025 (unaudited), June 30, 2025 (unaudited), March 31, 2025 (unaudited), December 31, 2024, and September 30, 2024 (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 27,584,732 at September 30, 2025 (unaudited), 27,470,283 at June 30, 2025 (unaudited), 27,560,150 at March 31, 2025 (unaudited), 27,552,449 at December 31, 2024, and 27,425,690 at September 30, 2024 (unaudited) 276 275 276 276 274 Additional Paid-In Capital 97,101 95,174 95,503 95,088 94,597 Retained Earnings 339,135 328,547 318,041 309,421 302,231 Accumulated Other Comprehensive Loss (5,563 ) (14,228 ) (11,359 ) (13,364 ) (11,416 ) Total Shareholders' Equity 497,463 476,282 468,975 457,935 452,200 Total Liabilities and Equity $ 5,359,994 $ 5,296,673 $ 5,136,808 $ 5,066,242 $ 4,691,517 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, 2025 2025 2025 2024 2024 2025 2024 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Interest Income Loans, Including Fees $ 60,038 $ 57,888 $ 53,820 $ 51,870 $ 51,895 $ 171,746 $ 152,861 Investment Securities 10,371 9,200 9,397 9,109 8,725 28,968 24,818 Other 3,224 2,110 2,491 2,345 2,407 7,825 4,895 Total Interest Income 73,633 69,198 65,708 63,324 63,027 208,539 182,574 Interest Expense Deposits 34,615 32,497 32,103 32,810 34,187 99,215 95,995 Federal Funds Purchased — 16 — 42 2 16 1,159 Notes Payable 106 260 258 275 296 624 887 FHLB Advances 2,933 2,852 2,156 2,229 1,942 7,941 6,325 Subordinated Debentures 1,888 1,121 983 1,001 1,001 3,992 2,982 Total Interest Expense 39,542 36,746 35,500 36,357 37,428 111,788 107,348 Net Interest Income 34,091 32,452 30,208 26,967 25,599 96,751 75,226 Provision for Credit Losses 1,100 2,000 1,500 2,175 — 4,600 1,350 Net Interest Income After Provision for Credit Losses 32,991 30,452 28,708 24,792 25,599 92,151 73,876 Noninterest Income Customer Service Fees 501 496 495 394 373 1,492 1,081 Net Gain (Loss) on Sales of Securities 59 474 1 — (28 ) 534 385 Net Gain on Sales of Foreclosed Assets — — — 62 — — — Letter of Credit Fees 383 323 455 849 424 1,161 1,127 Debit Card Interchange Fees 173 152 137 145 152 462 448 Swap Fees — 938 42 521 26 980 26 Bank-Owned Life Insurance 440 387 379 362 352 1,206 965 Investment Advisory Fees 208 213 325 — — 746 — FHLB Prepayment Income — 301 — — — 301 — Other Income 297 343 245 200 223 885 803 Total Noninterest Income 2,061 3,627 2,079 2,533 1,522 7,767 4,835 Noninterest Expense Salaries and Employee Benefits 12,229 11,363 11,371 10,605 9,851 34,963 28,959 Occupancy and Equipment 1,266 1,274 1,234 1,181 1,069 3,774 3,218 FDIC Insurance Assessment 775 750 450 609 750 1,975 2,350 Data Processing 637 625 619 445 368 1,881 1,252 Professional and Consulting Fees 1,261 1,110 994 989 1,149 3,365 2,890 Derivative Collateral Fees 309 372 451 426 381 1,132 1,395 Information Technology and Telecommunications 973 971 971 877 840 2,915 2,448 Marketing and Advertising 658 435 327 479 367 1,420 1,006 Intangible Asset Amortization 230 230 230 52 9 690 26 Other Expense 1,618 1,811 1,489 1,149 976 4,918 2,944 Total Noninterest Expense 19,956 18,941 18,136 16,812 15,760 57,033 46,488 Income Before Income Taxes 15,096 15,138 12,651 10,513 11,361 42,885 32,223 Provision for Income Taxes 3,495 3,618 3,018 2,309 2,686 10,131 7,602 Net Income 11,601 11,520 9,633 8,204 8,675 32,754 24,621 Preferred Stock Dividends (1,013 ) (1,014 ) (1,013 ) (1,014 ) (1,013 ) (3,040 ) (3,040 ) Net Income Available to Common Shareholders $ 10,588 $ 10,506 $ 8,620 $ 7,190 $ 7,662 $ 29,714 $ 21,581 Earnings Per Share Basic $ 0.38 $ 0.38 $ 0.31 $ 0.26 $ 0.28 $ 1.08 $ 0.79 Diluted 0.38 0.38 0.31 0.26 0.27 1.06 0.77 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, 2025 June 30, 2025 September 30, 2024 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 $ 256,174 $ 2,732 4.23 % $ 166,164 $ 1,681 4.06 % $ 157,114 $ 1,971 4.99 % Investment Securities: Taxable Investment Securities 730,643 9,448 5.13 734,998 8,883 4.85 668,429 8,406 5.00 Tax-Exempt Investment Securities (1) 81,962 1,168 5.66 31,940 401 5.04 31,496 402 5.08 Total Investment Securities 812,605 10,616 5.18 766,938 9,284 4.86 699,925 8,808 5.01 Loans(1)(2) 4,132,987 60,317 5.79 4,064,540 58,122 5.74 3,721,654 52,118 5.57 Federal Home Loan Bank Stock 21,373 492 9.12 21,416 429 8.03 16,828 436 10.31 Total Interest Earning Assets 5,223,139 74,157 5.63 % 5,019,058 69,516 5.56 % 4,595,521 63,333 5.48 % Noninterest Earning Assets 149,304 143,124 108,283 Total Assets $ 5,372,443 $ 5,162,182 $ 4,703,804 Interest Bearing Liabilities: Deposits: Interest Bearing Transaction Deposits $ 843,905 $ 8,037 3.78 % $ 813,906 $ 7,769 3.83 % $ 804,161 $ 9,369 4.63 % Savings and Money Market Deposits 1,473,465 13,465 3.63 1,370,831 12,692 3.71 939,665 10,262 4.34 Time Deposits 342,926 3,703 4.28 326,024 3,268 4.02 355,050 3,918 4.39 Brokered Deposits 856,516 9,410 4.36 833,629 8,768 4.22 989,712 10,638 4.28 Total Interest Bearing Deposits 3,516,812 34,615 3.90 3,344,390 32,497 3.90 3,088,588 34,187 4.40 Federal Funds Purchased — — — 1,369 16 4.64 141 2 5.72 Notes Payable 5,679 106 7.40 13,750 260 7.58 13,750 296 8.58 FHLB Advances 404,500 2,933 2.88 404,473 2,852 2.83 309,120 1,942 2.50 Subordinated Debentures 108,639 1,888 6.89 83,892 1,121 5.36 79,519 1,001 5.01 Total Interest Bearing Liabilities 4,035,630 39,542 3.89 % 3,847,874 36,746 3.83 % 3,491,118 37,428 4.27 % Noninterest Bearing Liabilities: Noninterest Bearing Transaction Deposits 793,760 774,424 710,192 Other Noninterest Bearing Liabilities 57,184 68,184 59,417 Total Noninterest Bearing Liabilities 850,944 842,608 769,609 Shareholders' Equity 485,869 471,700 443,077 Total Liabilities and Shareholders' Equity $ 5,372,443 $ 5,162,182 $ 4,703,804 Net Interest Income / Interest Rate Spread 34,615 1.74 % 32,770 1.73 % 25,905 1.21 % Net Interest Margin(3) 2.63 % 2.62 % 2.24 % Taxable Equivalent Adjustment: Tax-Exempt Investment Securities and Loans (524 ) (318 ) (306 ) Net Interest Income $ 34,091 $ 32,452 $ 25,599 ___________________________(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. 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, 2025 September 30, 2024 Average Interest Yield/ Average Interest Yield/ (dollars in thousands) Balance & Fees Rate Balance & Fees Rate Interest Earning Assets: Cash Investments $ 210,525 $ 6,469 4.11 % $ 104,831 $ 3,722 4.74 % Investment Securities: Taxable Investment Securities 744,605 27,364 4.91 649,538 23,867 4.91 Tax-Exempt Investment Securities (1) 49,987 2,030 5.43 31,597 1,203 5.09 Total Investment Securities 794,592 29,394 4.95 681,135 25,070 4.92 Loans(1)(2) 4,034,656 172,418 5.71 3,740,855 153,568 5.48 Federal Home Loan Bank Stock 20,601 1,356 8.80 18,111 1,173 8.65 Total Interest Earning Assets 5,060,374 209,637 5.54 % 4,544,932 183,533 5.39 % Noninterest Earning Assets 145,373 102,993 Total Assets $ 5,205,747 $ 4,647,925 Interest Bearing Liabilities: Deposits: Interest Bearing Transaction Deposits $ 837,504 $ 23,995 3.83 % $ 757,409 $ 25,332 4.47 % Savings and Money Market Deposits 1,383,876 38,092 3.68 917,051 28,502 4.15 Time Deposits 333,199 10,280 4.13 344,484 10,935 4.24 Brokered Deposits 841,750 26,848 4.26 993,445 31,226 4.20 Total Interest Bearing Deposits 3,396,329 99,215 3.91 3,012,389 95,995 4.26 Federal Funds Purchased 456 16 4.64 27,605 1,159 5.61 Notes Payable 11,030 624 7.57 13,750 887 8.62 FHLB Advances 388,026 7,941 2.74 311,380 6,325 2.71 Subordinated Debentures 90,853 3,992 5.87 79,424 2,982 5.02 Total Interest Bearing Liabilities 3,886,694 111,788 3.85 % 3,444,548 107,348 4.16 % Noninterest Bearing Liabilities: Noninterest Bearing Transaction Deposits 779,897 700,308 Other Noninterest Bearing Liabilities 64,878 67,405 Total Noninterest Bearing Liabilities 844,775 767,713 Shareholders' Equity 474,278 435,664 Total Liabilities and Shareholders' Equity $ 5,205,747 $ 4,647,925 Net Interest Income / Interest Rate Spread 97,849 1.69 % 76,185 1.23 % Net Interest Margin(3) 2.59 % 2.24 % Taxable Equivalent Adjustment: Tax-Exempt Investment Securities and Loans (1,098 ) (959 ) Net Interest Income $ 96,751 $ 75,226 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) 2025 2025 2025 2024 2024 2025 2024 Allowance for Credit Losses Balance at Beginning of Period $ 55,765 $ 53,766 $ 52,277 $ 51,018 $ 51,949 $ 52,277 $ 50,494 Day 1 PCD Allowance — — — 114 — — — Provision for Credit Losses(1) 900 2,000 1,500 1,450 — 4,400 1,450 Charge-offs (276 ) (6 ) (12 ) (317 ) (937 ) (294 ) (949 ) Recoveries 1 5 1 12 6 7 23 Net Charge-offs $ (275 ) $ (1 ) $ (11 ) $ (305 ) $ (931 ) $ (287 ) $ (926 ) Balance at End of Period 56,390 55,765 53,766 52,277 51,018 56,390 51,018 Allowance for Credit Losses to Total Loans 1.34 % 1.35 % 1.34 % 1.35 % 1.38 % 1.34 % 1.38 % ______________________________(1) Includes a day 1 provision for credit losses for non-PCD loans acquired in the FMCB transaction of $950,000 for the three months ended December 31, 2024. 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) 2025 2025 2025 2024 2024 2025 2024 Provision for Credit Losses on Loans and Leases $ 900 $ 2,000 $ 1,500 $ 1,450 $ — $ 4,400 $ 1,450 Provision for (Recovery of) Credit Losses for Off-Balance Sheet Credit Exposures 200 — — 725 — 200 (100 ) Provision for Credit Losses $ 1,100 $ 2,000 $ 1,500 $ 2,175 $ — $ 4,600 $ 1,350 As of and for the Three Months Ended September 30, June 30, March 31, December 31, September 30, (dollars in thousands) 2025 2025 2025 2024 2024 Selected Asset Quality Data Loans 30-89 Days Past Due $ 2,906 $ 12,492 $ 466 $ 1,291 $ 65 Loans 30-89 Days Past Due to Total Loans 0.07 % 0.30 % 0.01 % 0.03 % 0.00 % Nonperforming Loans $ 9,991 $ 10,134 $ 10,290 $ 301 $ 8,378 Nonperforming Loans to Total Loans 0.24 % 0.24 % 0.26 % 0.01 % 0.23 % Nonaccrual Loans to Total Loans 0.24 0.24 0.26 0.01 0.23 Nonaccrual Loans and Loans Past Due 90 Days and Still Accruing to Total Loans 0.24 0.24 0.26 0.01 0.23 Foreclosed Assets $ — $ 185 $ — $ — $ 434 Nonperforming Assets(1) 9,991 10,319 10,290 301 8,812 Nonperforming Assets to Total Assets(1) 0.19 % 0.19 % 0.20 % 0.01 % 0.19 % Net Loan Charge-Offs (Annualized) to Average Loans 0.03 0.00 0.00 0.03 0.10 Watchlist/Special Mention Risk Rating Loans $ 40,642 $ 53,282 $ 38,346 $ 46,581 $ 31,991 Substandard Risk Rating Loans 58,074 44,986 31,587 21,791 31,637 _________________________(1) Nonperforming assets are defined as nonaccrual loans plus 90 days past due and still accruing plus foreclosed assets. 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) 2025 2025 2025 2024 2024 2025 2024 Pre-Provision Net Revenue Noninterest Income $ 2,061 $ 3,627 $ 2,079 $ 2,533 $ 1,522 $ 7,767 $ 4,835 Less: (Gain) Loss on Sales of Securities (59 ) (474 ) (1 ) — 28 (534 ) (385 ) Less: FHLB Advance Prepayment Income — (301 ) — — — (301 ) — Total Operating Noninterest Income 2,002 2,852 2,078 2,533 1,550 6,932 4,450 Plus: Net Interest Income 34,091 32,452 30,208 26,967 25,599 96,751 75,226 Net Operating Revenue $ 36,093 $ 35,304 $ 32,286 $ 29,500 $ 27,149 $ 103,683 $ 79,676 Noninterest Expense $ 19,956 $ 18,941 $ 18,136 $ 16,812 $ 15,760 $ 57,033 $ 46,488 Total Operating Noninterest Expense $ 19,956 $ 18,941 $ 18,136 $ 16,812 $ 15,760 $ 57,033 $ 46,488 Pre-Provision Net Revenue $ 16,137 $ 16,363 $ 14,150 $ 12,688 $ 11,389 $ 46,650 $ 33,188 Plus: Non-Operating Revenue Adjustments 59 775 1 — (28 ) 835 385 Less: Provision for Credit Losses 1,100 2,000 1,500 2,175 — 4,600 1,350 Provision for Income Taxes 3,495 3,618 3,018 2,309 2,686 10,131 7,602 Net Income $ 11,601 $ 11,520 $ 9,633 $ 8,204 $ 8,675 $ 32,754 $ 24,621 Average Assets $ 5,372,443 $ 5,162,182 $ 5,071,446 $ 4,788,036 $ 4,703,804 $ 5,205,747 $ 4,647,925 Pre-Provision Net Revenue Return on Average Assets 1.19 % 1.27 % 1.13 % 1.05 % 0.96 % 1.20 % 0.95 % Adjusted Pre-Provision Net Revenue Net Operating Revenue $ 36,093 $ 35,304 $ 32,286 $ 29,500 $ 27,149 $ 103,683 $ 79,676 Noninterest Expense $ 19,956 $ 18,941 $ 18,136 $ 16,812 $ 15,760 $ 57,033 $ 46,488 Less: Merger-related Expenses (530 ) (540 ) (565 ) (488 ) (224 ) (1,635 ) (224 ) Adjusted Total Operating Noninterest Expense $ 19,426 $ 18,401 $ 17,571 $ 16,324 $ 15,536 $ 55,398 $ 46,264 Adjusted Pre-Provision Net Revenue $ 16,667 $ 16,903 $ 14,715 $ 13,176 $ 11,613 $ 48,285 $ 33,412 Adjusted Pre-Provision Net Revenue Return on Average Assets 1.23 % 1.31 % 1.18 % 1.09 % 0.98 % 1.24 % 0.96 % Core Net Interest Margin Net Interest Income (Tax-equivalent Basis) $ 34,614 $ 32,770 $ 30,464 $ 27,254 $ 25,905 $ 97,848 $ 76,185 Less: Loan Fees (966 ) (1,019 ) (719 ) (747 ) (968 ) (2,704 ) (2,342 ) Purchase Accounting Accretion: Loan Accretion (380 ) (425 ) (342 ) — — (1,147 ) — Bond Accretion (89 ) (152 ) (578 ) (91 ) — (819 ) — Bank-Owned Certificates of Deposit Accretion (6 ) (4 ) (7 ) — — (17 ) — Deposit Certificates of Deposit Accretion (13 ) (37 ) (38 ) — — (88 ) — Total Purchase Accounting Accretion (488 ) (618 ) (965 ) (91 ) — (2,071 ) — Core Net Interest Income (Tax-equivalent Basis) $ 33,160 $ 31,133 $ 28,780 $ 26,416 $ 24,937 $ 93,073 $ 73,843 Average Interest Earning Assets $ 5,223,139 $ 5,019,058 $ 4,928,283 $ 4,682,841 $ 4,595,521 $ 5,060,374 $ 4,544,932 Core Net Interest Margin 2.52 % 2.49 % 2.37 % 2.24 % 2.16 % 2.46 % 2.17 % Core Loan Yield Loan Interest Income (Tax-equivalent Basis) $ 60,317 $ 58,122 $ 53,979 $ 52,078 $ 52,118 $ 172,418 $ 153,567 Less: Loan Fees (966 ) (1,019 ) (719 ) (747 ) (968 ) (2,704 ) (2,342 ) Loan Accretion (380 ) (425 ) (342 ) — — (1,147 ) — Core Loan Interest Income $ 58,971 $ 56,678 $ 52,918 $ 51,331 $ 51,150 $ 168,567 $ 151,225 Average Loans $ 4,132,987 $ 4,064,540 $ 3,899,258 $ 3,730,532 $ 3,721,654 $ 4,034,656 $ 3,740,855 Core Loan Yield 5.66 % 5.59 % 5.50 % 5.47 % 5.47 % 5.59 % 5.40 % 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) 2025 2025 2025 2024 2024 2025 2024 Efficiency Ratio Noninterest Expense $ 19,956 $ 18,941 $ 18,136 $ 16,812 $ 15,760 $ 57,033 $ 46,488 Less: Amortization of Intangible Assets (230 ) (230 ) (230 ) (52 ) (9 ) (690 ) (26 ) Adjusted Noninterest Expense $ 19,726 $ 18,711 $ 17,906 $ 16,760 $ 15,751 $ 56,343 $ 46,462 Net Interest Income $ 34,091 $ 32,452 $ 30,208 $ 26,967 $ 25,599 $ 96,751 $ 75,226 Noninterest Income 2,061 3,627 2,079 2,533 1,522 7,767 4,835 Less: (Gain) Loss on Sales of Securities (59 ) (474 ) (1 ) — 28 (534 ) (385 ) Adjusted Operating Revenue $ 36,093 $ 35,605 $ 32,286 $ 29,500 $ 27,149 $ 103,984 $ 79,676 Efficiency Ratio 54.7 % 52.6 % 55.5 % 56.8 % 58.0 % 54.2 % 58.3 % Adjusted Efficiency Ratio Noninterest Expense $ 19,956 $ 18,941 $ 18,136 $ 16,812 $ 15,760 $ 57,033 $ 46,488 Less: Amortization of Intangible Assets (230 ) (230 ) (230 ) (52 ) (9 ) (690 ) (26 ) Less: Merger-related Expenses (530 ) (540 ) (565 ) (488 ) (224 ) (1,635 ) (224 ) Adjusted Noninterest Expense $ 19,196 $ 18,171 $ 17,341 $ 16,272 $ 15,527 $ 54,708 $ 46,238 Net Interest Income $ 34,091 $ 32,452 $ 30,208 $ 26,967 $ 25,599 $ 96,751 $ 75,226 Noninterest Income 2,061 3,627 2,079 2,533 1,522 7,767 4,835 Less: (Gain) Loss on Sales of Securities (59 ) (474 ) (1 ) — 28 (534 ) (385 ) Less: FHLB Advance Prepayment Income — (301 ) — — — (301 ) — Adjusted Operating Revenue $ 36,093 $ 35,304 $ 32,286 $ 29,500 $ 27,149 $ 103,683 $ 79,676 Adjusted Efficiency Ratio 53.2 % 51.5 % 53.7 % 55.2 % 57.2 % 52.8 % 58.0 % Adjusted Noninterest Expense to Average Assets (Annualized) Noninterest Expense $ 19,956 $ 18,941 $ 18,136 $ 16,812 $ 15,760 $ 57,033 $ 46,488 Less: Merger-related Expenses (530 ) (540 ) (565 ) (488 ) (224 ) (1,635 ) (224 ) Adjusted Noninterest Expense $ 19,426 $ 18,401 $ 17,571 $ 16,324 $ 15,536 $ 55,398 $ 46,264 Average Assets $ 5,372,443 $ 5,162,182 $ 5,071,446 $ 4,788,036 $ 4,703,804 $ 5,205,747 $ 4,647,925 Adjusted Noninterest Expense to Average Assets (Annualized) 1.43 % 1.43 % 1.41 % 1.36 % 1.31 % 1.42 % 1.33 % Tangible Common Equity and Tangible Common Equity/Tangible Assets Total Shareholders' Equity $ 497,463 $ 476,282 $ 468,975 $ 457,935 $ 452,200 Less: Preferred Stock (66,514 ) (66,514 ) (66,514 ) (66,514 ) (66,514 ) Total Common Shareholders' Equity 430,949 409,768 402,461 391,421 385,686 Less: Intangible Assets (19,142 ) (19,372 ) (19,602 ) (19,832 ) (2,789 ) Tangible Common Equity $ 411,807 $ 390,396 $ 382,859 $ 371,589 $ 382,897 Total Assets $ 5,359,994 $ 5,296,673 $ 5,136,808 $ 5,066,242 $ 4,691,517 Less: Intangible Assets (19,142 ) (19,372 ) (19,602 ) (19,832 ) (2,789 ) Tangible Assets $ 5,340,852 $ 5,277,301 $ 5,117,206 $ 5,046,410 $ 4,688,728 Tangible Common Equity/Tangible Assets 7.71 % 7.40 % 7.48 % 7.36 % 8.17 % Tangible Book Value Per Share Book Value Per Common Share $ 15.62 $ 14.92 $ 14.60 $ 14.21 $ 14.06 Less: Effects of Intangible Assets (0.69 ) (0.71 ) (0.71 ) (0.72 ) (0.10 ) Tangible Book Value Per Common Share $ 14.93 $ 14.21 $ 13.89 $ 13.49 $ 13.96 Return on Average Tangible Common Equity Net Income Available to Common Shareholders $ 10,588 $ 10,506 $ 8,620 $ 7,190 $ 7,662 $ 29,714 $ 21,581 Average Shareholders' Equity $ 485,869 $ 471,700 $ 465,408 $ 455,949 $ 443,077 $ 474,278 $ 435,664 Less: Average Preferred Stock (66,514 ) (66,514 ) (66,514 ) (66,514 ) (66,514 ) (66,514 ) (66,514 ) Average Common Equity 419,355 405,186 398,894 389,435 376,563 407,764 369,150 Less: Effects of Average Intangible Assets (19,274 ) (19,504 ) (19,738 ) (4,412 ) (2,794 ) (19,504 ) (2,802 ) Average Tangible Common Equity $ 400,081 $ 385,682 $ 379,156 $ 385,023 $ 373,769 $ 388,260 $ 366,348 Return on Average Tangible Common Equity 10.50 % 10.93 % 9.22 % 7.43 % 8.16 % 10.23 % 7.87 % 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) 2025 2025 2025 2024 2024 2025 2024 Adjusted Diluted Earnings Per Common Share Net Income Available to Common Shareholders $ 10,588 $ 10,506 $ 8,620 $ 7,190 $ 7,662 $ 29,714 $ 21,581 Add: Merger-related Expenses 530 540 565 488 224 1,635 224 Less: FHLB Advance Prepayment Income — (301 ) — — — (301 ) — Less: (Gain) Loss on Sales of Securities (59 ) (474 ) (1 ) — 28 (534 ) (385 ) Total Adjustments 471 (235 ) 564 488 252 800 (161 ) Less: Tax Impact of Adjustments (110 ) 56 (135 ) (107 ) (59 ) (189 ) 38 Adjusted Net Income Available to Common Shareholders $ 10,949 $ 10,327 $ 9,049 $ 7,571 $ 7,855 $ 30,325 $ 21,458 Diluted Weighted Average Shares Outstanding 28,190,406 27,998,008 28,036,506 28,055,532 27,904,910 28,089,409 27,919,784 Adjusted Diluted Earnings Per Common Share $ 0.39 $ 0.37 $ 0.32 $ 0.27 $ 0.28 $ 1.08 $ 0.77 Adjusted Return on Average Assets Net Income $ 11,601 $ 11,520 $ 9,633 $ 8,204 $ 8,675 $ 32,754 $ 24,621 Add: Total Adjustments 471 (235 ) 564 488 252 800 (161 ) Less: Tax Impact of Adjustments (110 ) 56 (135 ) (107 ) (59 ) (189 ) 38 Adjusted Net Income $ 11,962 $ 11,341 $ 10,062 $ 8,585 $ 8,868 $ 33,365 $ 24,498 Average Assets $ 5,372,443 $ 5,162,182 $ 5,071,446 $ 4,788,036 $ 4,703,804 $ 5,205,747 $ 4,647,925 Adjusted Return on Average Assets 0.88 % 0.88 % 0.80 % 0.71 % 0.75 % 0.86 % 0.70 % Adjusted Return on Average Shareholders' Equity Adjusted Net Income $ 11,962 $ 11,341 $ 10,062 $ 8,585 $ 8,868 $ 33,365 $ 24,498 Average Shareholders' Equity $ 485,869 $ 471,700 $ 465,408 $ 455,949 $ 443,077 $ 474,278 $ 435,664 Adjusted Return on Average Shareholders' Equity 9.77 % 9.64 % 8.77 % 7.49 % 7.96 % 9.41 % 7.51 % Adjusted Return on Average Tangible Common Equity Adjusted Net Income Available to Common Shareholders $ 10,949 $ 10,327 $ 9,049 $ 7,571 $ 7,855 $ 30,325 $ 21,458 Average Tangible Common Equity $ 400,081 $ 385,682 $ 379,156 $ 385,023 $ 373,769 $ 388,260 $ 366,348 Adjusted Return on Average Tangible Common Equity 10.86 % 10.74 % 9.68 % 7.82 % 8.36 % 10.44 % 7.82 % Source: Bridgewater Bancshares, Inc.