Bridgewater Bancshares, Inc. Announces First Quarter 2026 Financial Results

Bridgewater Bancshares, Inc. Announces First Quarter 2026 Financial Results First Quarter 2026 Highlights Net income of $17.4 million, or $0.58 per diluted common share; adjusted net income of $12.6 million, or $0.41 per diluted common share.(1) Net interest income increased $960,000, or 10.9% annualized, from the fourth quarter of 2025. Net interest margin (on a fully tax-equivalent basis) of 2.99%, an increase of 24 basis points from the fourth quarter of 2025. Cost of total deposits of 2.79% for the first quarter of 2026, a decrease of 18 basis points from the fourth quarter of 2025. Enhanced balance sheet efficiency to improve forward profitability through the sale of $208.5 million of securities, for a pre-tax gain of $7.3 million, and prepayment of $97.5 million of FHLB advances, including a $982,000 prepayment fee. Gross loans increased by $58.5 million, or 5.5% annualized, from the fourth quarter of 2025. Total deposits decreased by $14.9 million, or 1.4% annualized, from the fourth quarter of 2025; core deposits(2) increased by $26.2 million, or 3.2% annualized, from the fourth quarter of 2025. Efficiency ratio(1) of 56.3%, up from 51.6% for the fourth quarter of 2025; adjusted efficiency ratio(1) of 53.8%, up from 50.7% for the fourth quarter of 2025. Annualized net loan charge-offs as a percentage of average loans of 0.05%, compared to 0.11% for the fourth quarter of 2025. Nonperforming assets to total assets of 0.22% at March 31, 2026, down from 0.41% at December 31, 2025. Tangible book value per share(1) of $15.93 at March 31, 2026, an increase of 9.9% annualized, from the fourth quarter of 2025. Common Equity Tier 1 Risk-Based Capital Ratio of 9.53%, up from 9.17% at December 31, 2025. Launched an at-the-market (“ATM”) offering for the sale from time-to-time of up to $50 million of common stock. Bridgewater Bancshares, Inc. (Nasdaq: BWB) (“the Company”), the parent company of Bridgewater Bank (“the Bank”), today announced net income of $17.4 million for the first quarter of 2026, compared to $13.3 million for the fourth quarter of 2025, and $9.6 million for the first quarter of 2025. Earnings per diluted common share were $0.58 for the first quarter of 2026, compared to $0.43 for the fourth quarter of 2025, and $0.31 for the first quarter of 2025. Adjusted diluted earnings per share, a non-GAAP financial measure, were $0.41 for the first quarter of 2026, compared to $0.44 for the fourth quarter of 2025, and $0.32 for the first quarter of 2025. “Bridgewater’s first quarter of 2026 was highlighted by significant net interest margin expansion, continued loan and core deposit growth, and strong asset quality,” said Chairman and Chief Executive Officer, Jerry Baack. “We took opportunistic actions during the quarter to enhance our balance sheet efficiency, uniquely resulting in a substantial gain on the sale of securities during the quarter while also positioning us for improved forward profitability. As a result of the strong start to 2026, we were able to build our capital position and continue generating consistent tangible book value per share growth. “Our teams continue to work hard to build, strengthen, and service relationships with clients, which has been instrumental in our ongoing success in gaining market share. These dedicated efforts continue to support our growth initiatives and drive meaningful value for our clients and shareholders alike.” __________________________________ (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. Key Financial Measures As of and for the Three Months Ended March 31, December 31, March 31, 2026 2025 2025 Per Common Share Data Basic Earnings Per Share $ 0.59 $ 0.45 $ 0.31 Diluted Earnings Per Share 0.58 0.43 0.31 Adjusted Diluted Earnings Per Share(1) 0.41 0.44 0.32 Book Value Per Share 16.60 16.23 14.60 Tangible Book Value Per Share(1) 15.93 15.55 13.89 Financial Ratios Return on Average Assets(2) 1.35 % 0.97 % 0.77 % Pre-Provision Net Revenue Return on Average Assets(1)(2) 1.30 1.35 1.13 Return on Average Shareholders' Equity(2) 13.45 10.38 8.39 Return on Average Tangible Common Equity (1)(2) 15.13 11.53 9.22 Net Interest Margin (3) 2.99 2.75 2.51 Core Net Interest Margin(1)(3) 2.86 2.62 2.37 Cost of Total Deposits 2.79 2.97 3.18 Cost of Funds 2.90 3.07 3.17 Efficiency Ratio (1) 56.3 51.6 55.5 Noninterest Expense to Average Assets(2) 1.71 1.48 1.45 Tangible Common Equity to Tangible Assets(1) 8.34 8.01 7.48 Common Equity Tier 1 Risk-based Capital Ratio (Consolidated)(4) 9.53 9.17 9.03 Adjusted Financial Ratios(1) Adjusted Return on Average Assets(2) 0.98 % 0.99 % 0.80 % Adjusted Pre-Provision Net Revenue Return on Average Assets(2) 1.37 1.38 1.18 Adjusted Return on Average Shareholders' Equity(2) 9.76 10.54 8.77 Adjusted Return on Average Tangible Common Equity(2) 10.72 11.72 9.68 Adjusted Efficiency Ratio 53.8 50.7 53.7 Adjusted Noninterest Expense to Average Assets(2) 1.64 1.45 1.41 Balance Sheet and Asset Quality (dollars in thousands) Total Assets $ 5,335,396 $ 5,407,002 $ 5,136,808 Total Loans, Gross 4,368,042 4,309,517 4,020,076 Deposits 4,305,511 4,320,369 4,162,457 Loan to Deposit Ratio 101.5 % 99.7 % 96.6 % Net Loan Charge-Offs to Average Loans(2) 0.05 0.11 0.00 Nonperforming Assets to Total Assets (5) 0.22 0.41 0.20 Allowance for Credit Losses to Total Loans 1.31 1.31 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. Income Statement Net Interest Margin and Net Interest Income Net interest margin (on a fully tax-equivalent basis), a non-GAAP financial measure, for the first quarter of 2026 was 2.99%, a 24 basis point increase from 2.75% in the fourth quarter of 2025, and a 48 basis point increase from 2.51% in the first 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 2.86% for the first quarter of 2026, a 24 basis point increase from 2.62% in the fourth quarter of 2025, and a 49 basis point increase from 2.37% in the first quarter of 2025. Net interest margin expanded to 2.99% in the first quarter of 2026 primarily due to lower rates paid on deposits, growth in the loan portfolio at higher yields, and a decrease in average earning assets due to investment securities sales.The year-over-year expansion in net interest margin was primarily due to lower rates paid on deposits and growth in the loan portfolio at higher yields, offset partially by the refinancing of subordinated debt at higher rates late in the second quarter of 2025. Net interest income was $36.6 million for the first quarter of 2026, an increase of $960,000 from $35.7 million in the fourth quarter of 2025, and an increase of $6.4 million from $30.2 million in the first quarter of 2025. The linked-quarter increase in net interest income was primarily due to lower rates paid on deposits, lower FHLB advance balances at lower yields, and growth in the loan portfolio, offset partially by lower cash and investment securities balances. The decrease in securities was due to the Company selling $208.5 million of securities during the quarter to enhance balance sheet efficiency and drive current and future earnings.The year-over-year increase in net interest income was primarily due to lower rates paid on deposits and growth in the loan portfolio, offset partially by lower cash and investment securities balances. Interest income was $70.0 million for the first quarter of 2026, a decrease of $3.3 million from $73.3 million in the fourth quarter of 2025, and an increase of $4.3 million from $65.7 million in the first quarter of 2025. The yield on interest earning assets (on a fully tax-equivalent basis) was 5.65% in the first quarter of 2026, compared to 5.58% in the fourth quarter of 2025, and 5.43% in the first quarter of 2025.The linked-quarter increase in the yield on interest earning assets was primarily due to the repricing of the loan portfolio and the sale of lower yielding investment securities.The year-over-year increase in the yield on interest earning assets was primarily due to growth and repricing of the loan portfolio at accretive yields.The aggregate loan yield was 5.81% in the first quarter of 2026, three basis points higher than 5.78% in the fourth quarter of 2025, and 20 basis points higher than 5.61% in the first quarter of 2025.Core loan yield, a non-GAAP financial measure, was 5.66% in the first quarter of 2026, three basis points higher than 5.63% in the fourth quarter of 2025, and 16 basis points higher than 5.50% in the first quarter of 2025. A summary of interest and fees recognized on loans for the periods indicated is as follows: Three Months Ended March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Interest 5.66 % 5.63 % 5.66 % 5.59 % 5.50 % Fees 0.12 0.10 0.09 0.11 0.07 Accretion 0.03 0.05 0.04 0.04 0.04 Yield on Loans 5.81 % 5.78 % 5.79 % 5.74 % 5.61 % Interest expense was $33.3 million for the first quarter of 2026, a decrease of $4.3 million from $37.6 million in the fourth quarter of 2025, and a decrease of $2.2 million from $35.5 million in the first quarter of 2025. The cost of interest bearing liabilities was 3.53% in the first quarter of 2026, compared to 3.73% in the fourth quarter of 2025, and 3.82% in the first quarter of 2025.The linked-quarter decrease in the cost of interest bearing liabilities was primarily due to lower rates paid on interest bearing deposits and lower balances and rates paid on 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, offset partially by higher balances and rates paid on subordinated debentures and higher rates paid on FHLB advances. Interest expense on deposits was $28.8 million for the first quarter of 2026, a decrease of $3.4 million from $32.2 million in the fourth quarter of 2025, and a decrease of $3.3 million from $32.1 million in the first quarter of 2025. The cost of total deposits was 2.79% in the first quarter of 2026, 18 basis points lower than 2.97% in the fourth quarter of 2025, and 39 basis points lower than 3.18% in the first quarter of 2025.The linked-quarter decrease in the cost of total deposits was primarily due to lower balances and rates paid on interest bearing deposits following interest rate cuts in the fourth quarter of 2025.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, lower average brokered deposit balances, and an increase in noninterest bearing deposits. Provision for Credit Losses The provision for credit losses on loans and leases was $1.4 million for the first quarter of 2026, compared to $1.3 million for the fourth quarter of 2025 and $1.5 million for the first quarter of 2025. The provision recorded in the first quarter of 2026 was primarily attributable to growth in the loan portfolio.The allowance for credit losses on loans to total loans was 1.31% at March 31, 2026, compared to 1.31% at December 31, 2025, and 1.34% at March 31, 2025. The provision for credit losses for off-balance sheet credit exposures was a negative provision of $150,000 for the first quarter of 2026, compared to a provision of $200,000 for the fourth quarter of 2025 and a provision of $-0- for the first quarter of 2025. A negative provision was recorded during the first quarter of 2026 due to a decrease in the volume of newly originated loans with unfunded commitments. Noninterest Income Noninterest income was $9.6 million for the first quarter of 2026, an increase of $6.4 million from $3.1 million for the fourth quarter of 2025, and an increase of $7.5 million from $2.1 million for the first quarter of 2025. The linked-quarter increase was primarily due to higher net gain on sale of securities, offset partially by lower letter of credit fees and swap fees.The year-over-year increase was primarily due to higher net gain on sale of securities, swap fees and other income, offset partially by lower letter of credit fees and investment advisory fees.Noninterest income included net gain on sales of securities of $7.3 million during the first quarter of 2026, compared to $80,000 for the fourth quarter of 2025, and $1,000 for the first quarter of 2025, all of which are considered non-core items. Noninterest Expense Noninterest expense was $22.2 million for the first quarter of 2026, an increase of $1.9 million from $20.2 million for the fourth quarter of 2025, and an increase of $4.0 million from $18.1 million for the first quarter of 2025. The linked-quarter increase was primarily due to increases in salaries and employee benefits and an FHLB advance prepayment penalty.The year-over-year increase was primarily attributable to increases in salaries and employee benefits, an FHLB advance prepayment penalty, and marketing and advertising expense.Noninterest expense for the first quarter of 2026 had no merger-related expenses associated with the acquisition of FMCB, compared to merger-related expenses of $346,000 for the fourth quarter of 2025, and $565,000 for the first quarter of 2025, all of which are considered non-core items.Noninterest expense included FHLB prepayment penalty expense of $982,000 for the first quarter of 2026, which is considered a non-core item.The efficiency ratio (on a fully tax-equivalent basis), a non-GAAP financial measure, was 56.3% for the first quarter of 2026, compared to 51.6% for the fourth quarter of 2025, and 55.5% for the first quarter of 2025.The Company had 337 full-time equivalent employees at March 31, 2026, compared to 322 at December 31, 2025, and 292 at March 31, 2025. The linked-quarter and year-over-year increases were largely driven by the hiring of key talent across the organization. Income Taxes The effective combined federal and state income tax rate was 23.8% for the first quarter of 2026, compared to 22.2% for the fourth quarter of 2025, and 23.9% for the first quarter of 2025. Balance Sheet Loans (dollars in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Commercial $ 593,406 $ 547,245 $ 533,476 $ 549,259 $ 528,801 Leases 41,791 43,407 43,186 44,817 43,958 Construction and Land Development 209,421 216,163 159,991 136,438 128,073 1-4 Family Construction 50,629 45,152 41,739 39,095 39,438 Real Estate Mortgage: 1-4 Family Mortgage 488,029 496,142 487,297 474,269 479,461 Multifamily 1,590,091 1,587,338 1,578,223 1,555,731 1,534,747 CRE Owner Occupied 188,588 189,754 192,966 192,837 196,080 CRE Nonowner Occupied 1,185,371 1,165,104 1,158,622 1,137,007 1,055,157 Total Real Estate Mortgage Loans 3,452,079 3,438,338 3,417,108 3,359,844 3,265,445 Consumer and Other 20,716 19,212 19,054 16,346 14,361 Total Loans, Gross 4,368,042 4,309,517 4,214,554 4,145,799 4,020,076 Allowance for Credit Losses on Loans (57,277 ) (56,443 ) (56,390 ) (55,765 ) (53,766 ) Net Deferred Loan Fees (8,633 ) (8,966 ) (8,282 ) (7,629 ) (7,218 ) Total Loans, Net $ 4,302,132 $ 4,244,108 $ 4,149,882 $ 4,082,405 $ 3,959,092 Total gross loans at March 31, 2026 were $4.37 billion, an increase of $58.5 million, or 5.5% annualized, compared to total gross loans of $4.31 billion at December 31, 2025, and an increase of $348.0 million, or 8.7%, compared to total gross loans of $4.02 billion at March 31, 2025. The increase in the loan portfolio during the first quarter of 2026 was due to growth in the commercial and CRE nonowner occupied portfolios. Deposits (dollars in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Noninterest Bearing Transaction Deposits $ 828,845 $ 923,070 $ 822,632 $ 787,868 $ 791,528 Interest Bearing Transaction Deposits 899,911 893,740 860,774 791,748 840,378 Savings and Money Market Deposits 1,497,517 1,380,922 1,428,726 1,441,694 1,372,191 Time Deposits 232,959 312,154 346,214 344,882 326,821 Brokered Deposits 846,279 810,483 834,418 870,550 831,539 Total Deposits $ 4,305,511 $ 4,320,369 $ 4,292,764 $ 4,236,742 $ 4,162,457 Total deposits at March 31, 2026 were $4.31 billion, a decrease of $14.9 million, or 1.4% annualized, compared to total deposits of $4.32 billion at December 31, 2025, and an increase of $143.1 million, or 3.4%, compared to total deposits of $4.16 billion at March 31, 2025. Core deposits, defined as total deposits excluding brokered deposits and certificates of deposit greater than $250,000, increased $26.2 million, or 3.2% annualized, from December 31, 2025, and increased $207.2 million, or 6.5%, from March 31, 2025.Noninterest bearing deposits decreased $94.2 million, or 41.4% annualized, from December 31, 2025, and increased $37.3 million, or 4.7%, from March 31, 2025.Brokered deposits increased $35.8 million, or 17.9% annualized, from December 31, 2025, and increased $14.7 million, or 1.8%, from March 31, 2025. 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 0.05% for the first quarter of 2026, compared to 0.11% for the fourth quarter of 2025, and 0.00% for the first quarter of 2025.At March 31, 2026, the Company’s nonperforming assets, which included nonaccrual loans, loans past due 90 days and still accruing, and foreclosed assets, were $11.7 million, or 0.22% of total assets, compared to $22.0 million, or 0.41% of total assets, at December 31, 2025, and $10.3 million, or 0.20% of total assets, at March 31, 2025.Loans with potential weaknesses that warranted a watch/special mention risk rating at March 31, 2026 totaled $47.7 million, compared to $47.8 million at December 31, 2025, and $38.3 million at March 31, 2025.Loans that warranted a substandard risk rating at March 31, 2026 totaled $43.1 million, compared to $53.0 million at December 31, 2025, and $31.6 million at March 31, 2025. Capital Total shareholders’ equity at March 31, 2026 was $528.4 million, an increase of $11.3 million, or 8.9% annualized, compared to $517.1 million at December 31, 2025, and an increase of $59.4 million, or 12.7%, over $469.0 million at March 31, 2025. The linked-quarter increase was primarily due to net income retained, offset partially by 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 preferred stock dividends and stock repurchases.The Consolidated Common Equity Tier 1 Risk-Based Capital Ratio was 9.53% at March 31, 2026, compared to 9.17% at December 31, 2025, and 9.03% March 31, 2025.Tangible common equity as a percentage of tangible assets, a non-GAAP financial measure, was 8.34% at March 31, 2026, compared to 8.01% at December 31, 2025, and 7.48% at March 31, 2025. Tangible book value per share, a non-GAAP financial measure, was $15.93 as of March 31, 2026, an increase of 9.9% annualized from $15.55 as of December 31, 2025, and an increase of 14.7% from $13.89 as of March 31, 2025. The Company did not repurchase any shares of its common stock during the first quarter of 2026. The Company had $13.1 million remaining under its current share repurchase authorization at March 31, 2026. The Company launched an ATM offering during the first quarter of 2026 for the sale from time-to-time of up to $50 million of company stock. The Company did not sell any shares as part of the ATM during the first quarter of 2026. 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 June 1, 2026 to shareholders of record of the Series A Preferred Stock at the close of business on May 15, 2026. Conference Call and Webcast The Company will host a conference call to discuss its first quarter 2026 financial results on Wednesday, April 22, 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 2037632. The replay will be available through April 29, 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 $5.3 billion as of March 31, 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. 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 changes in interest rates; 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 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, widespread disease or pandemics, acts of war, military conflicts, or terrorism, changes in foreign relations, or other adverse external events, including the wars in Iran and Ukraine, and other international conflicts; potential impairment to the goodwill the Company recorded in connection with acquisitions; risks associated with our integration of FMCB, 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; 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 March 31, December 31, September 30, June 30, March 31, (dollars in thousands) 2026 2025 2025 2025 2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Income Statement Net Interest Income $ 36,647 $ 35,687 $ 34,091 $ 32,452 $ 30,208 Provision for Credit Losses 1,200 1,450 1,100 2,000 1,500 Noninterest Income 9,564 3,148 2,061 3,627 2,079 Noninterest Expense 22,170 20,238 19,956 18,941 18,136 Net Income 17,406 13,334 11,601 11,520 9,633 Net Income Available to Common Shareholders 16,393 12,320 10,588 10,506 8,620 Per Common Share Data Basic Earnings Per Share $ 0.59 $ 0.45 $ 0.38 $ 0.38 $ 0.31 Diluted Earnings Per Share 0.58 0.43 0.38 0.38 0.31 Adjusted Diluted Earnings Per Share(1) 0.41 0.44 0.39 0.37 0.32 Book Value Per Share 16.60 16.23 15.62 14.92 14.60 Tangible Book Value Per Share(1) 15.93 15.55 14.93 14.21 13.89 Basic Weighted Average Shares Outstanding 27,800,091 27,641,138 27,504,840 27,460,982 27,568,772 Diluted Weighted Average Shares Outstanding 28,490,176 28,354,756 28,190,406 27,998,008 28,036,506 Shares Outstanding at Period End 27,832,867 27,759,970 27,584,732 27,470,283 27,560,150 Financial Ratios Return on Average Assets(2) 1.35 % 0.97 % 0.86 % 0.90 % 0.77 % Pre-Provision Net Revenue Return on Average Assets(1)(2) 1.30 1.35 1.19 1.27 1.13 Return on Average Shareholders' Equity(2) 13.45 10.38 9.47 9.80 8.39 Return on Average Tangible Common Equity(1)(2) 15.13 11.53 10.50 10.93 9.22 Net Interest Margin (3) 2.99 2.75 2.63 2.62 2.51 Core Net Interest Margin(1)(3) 2.86 2.62 2.52 2.49 2.37 Cost of Total Deposits 2.79 2.97 3.19 3.16 3.18 Cost of Funds 2.90 3.07 3.25 3.19 3.17 Efficiency Ratio (1) 56.3 51.6 54.7 52.6 55.5 Noninterest Expense to Average Assets(2) 1.71 1.48 1.47 1.47 1.45 Adjusted Financial Ratios(1) Adjusted Return on Average Assets(2) 0.98 % 0.99 % 0.88 % 0.88 % 0.80 % Adjusted Pre-Provision Net Revenue Return on Average Assets(2) 1.37 1.38 1.23 1.31 1.18 Adjusted Return on Average Shareholders' Equity(2) 9.76 10.54 9.77 9.64 8.77 Adjusted Return on Average Tangible Common Equity(2) 10.72 11.72 10.86 10.74 9.68 Adjusted Efficiency Ratio 53.8 50.7 53.2 51.5 53.7 Adjusted Noninterest Expense to Average Assets(2) 1.64 1.45 1.43 1.43 1.41 Balance Sheet Total Assets $ 5,335,396 $ 5,407,002 $ 5,359,994 $ 5,296,673 $ 5,136,808 Total Loans, Gross 4,368,042 4,309,517 4,214,554 4,145,799 4,020,076 Deposits 4,305,511 4,320,369 4,292,764 4,236,742 4,162,457 Total Shareholders' Equity 528,424 517,095 497,463 476,282 468,975 Loan to Deposit Ratio 101.5 % 99.7 % 98.2 % 97.9 % 96.6 % Core Deposits to Total Deposits(4) 78.4 77.6 76.4 75.2 76.2 Asset Quality Net Loan Charge-Offs to Average Loans (2) 0.05 % 0.11 % 0.03 % 0.00 % 0.00 % Nonperforming Assets to Total Assets(5) 0.22 0.41 0.19 0.19 0.20 Allowance for Credit Losses to Total Loans 1.31 1.31 1.34 1.35 1.34 As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, (dollars in thousands) 2026 2025 2025 2025 2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Capital Ratios (Consolidated)(6) Tier 1 Leverage Ratio 9.89 % 9.20 % 9.02 % 9.14 % 9.10 % Common Equity Tier 1 Risk-based Capital Ratio 9.53 9.17 9.08 9.03 9.03 Tier 1 Risk-based Capital Ratio 10.94 10.57 10.52 10.51 10.55 Total Risk-based Capital Ratio 14.48 14.12 14.12 14.17 13.62 Tangible Common Equity to Tangible Assets(1) 8.34 8.01 7.71 7.40 7.48 __________________________________ (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) March 31, December 31, September 30, June 30, March 31, 2026 2025 2025 2025 2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Assets Cash and Cash Equivalents $ 222,154 $ 123,511 $ 131,818 $ 217,495 $ 166,205 Bank-Owned Certificates of Deposit — — 3,658 3,897 4,139 Securities Available for Sale, at Fair Value 566,565 776,441 826,473 743,889 764,626 Loans, Net of Allowance for Credit Losses 4,302,132 4,244,108 4,149,882 4,082,405 3,959,092 Federal Home Loan Bank (FHLB) Stock, at Cost 18,398 21,122 21,373 21,472 18,984 Premises and Equipment, Net 52,784 51,576 50,955 49,979 49,442 Foreclosed Assets — — — 185 — Accrued Interest 15,841 18,929 19,244 17,711 17,700 Goodwill 11,982 11,982 11,982 11,982 11,982 Other Intangible Assets, Net 6,703 6,930 7,160 7,390 7,620 Bank-Owned Life Insurance 45,219 46,576 46,121 45,413 45,025 Other Assets 93,618 105,827 91,328 94,855 91,993 Total Assets $ 5,335,396 $ 5,407,002 $ 5,359,994 $ 5,296,673 $ 5,136,808 Liabilities and Equity Liabilities Deposits: Noninterest Bearing $ 828,845 $ 923,070 $ 822,632 $ 787,868 $ 791,528 Interest Bearing 3,476,666 3,397,299 3,470,132 3,448,874 3,370,929 Total Deposits 4,305,511 4,320,369 4,292,764 4,236,742 4,162,457 Notes Payable — — — 13,750 13,750 FHLB Advances 336,000 399,500 404,500 404,500 349,500 Subordinated Debentures, Net of Issuance Costs 108,782 108,677 108,588 108,689 79,766 Accrued Interest Payable 4,254 3,227 5,208 4,110 4,525 Other Liabilities 52,425 58,134 51,471 52,600 57,835 Total Liabilities 4,806,972 4,889,907 4,862,531 4,820,391 4,667,833 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 March 31, 2026 (unaudited), December 31, 2025, September 30, 2025 (unaudited), June 30, 2025 (unaudited), and March 31, 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 27,832,867 at March 31, 2026 (unaudited), 27,759,970 at December 31, 2025, 27,584,732 at September 30, 2025 (unaudited), 27,470,283 at June 30, 2025 (unaudited), and 27,560,150 at March 31, 2025 (unaudited) 278 278 276 275 276 Additional Paid-In Capital 99,564 98,287 97,101 95,174 95,503 Retained Earnings 367,848 351,455 339,135 328,547 318,041 Accumulated Other Comprehensive Gain (Loss) (5,780 ) 561 (5,563 ) (14,228 ) (11,359 ) Total Shareholders' Equity 528,424 517,095 497,463 476,282 468,975 Total Liabilities and Equity $ 5,335,396 $ 5,407,002 $ 5,359,994 $ 5,296,673 $ 5,136,808 Bridgewater Bancshares, Inc. and Subsidiaries Consolidated Statements of Income (dollars in thousands, except per share data) Three Months Ended March 31, December 31, September 30, June 30, March 31, 2026 2025 2025 2025 2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Interest Income Loans, Including Fees $ 61,726 $ 61,444 $ 60,038 $ 57,888 $ 53,820 Investment Securities 6,923 9,720 10,371 9,200 9,397 Other 1,316 2,145 3,224 2,110 2,491 Total Interest Income 69,965 73,309 73,633 69,198 65,708 Interest Expense Deposits 28,793 32,203 34,615 32,497 32,103 Federal Funds Purchased 238 5 — 16 — Notes Payable — — 106 260 258 FHLB Advances 2,438 3,524 2,933 2,852 2,156 Subordinated Debentures 1,849 1,890 1,888 1,121 983 Total Interest Expense 33,318 37,622 39,542 36,746 35,500 Net Interest Income 36,647 35,687 34,091 32,452 30,208 Provision for Credit Losses 1,200 1,450 1,100 2,000 1,500 Net Interest Income After Provision for Credit Losses 35,447 34,237 32,991 30,452 28,708 Noninterest Income Customer Service Fees 527 521 501 496 495 Net Gain on Sales of Securities 7,251 80 59 474 1 Letter of Credit Fees 185 668 383 323 455 Debit Card Interchange Fees 201 178 173 152 137 Swap Fees 240 651 — 938 42 Bank-Owned Life Insurance 447 455 440 387 379 Investment Advisory Fees 213 227 208 213 325 FHLB Prepayment Income — — — 301 — Other Income 500 368 297 343 245 Total Noninterest Income 9,564 3,148 2,061 3,627 2,079 Noninterest Expense Salaries and Employee Benefits 13,492 12,434 12,229 11,363 11,371 Occupancy and Equipment 1,375 1,171 1,266 1,274 1,234 FDIC Insurance Assessment 780 770 775 750 450 Data Processing 611 638 637 625 619 Professional and Consulting Fees 1,196 1,404 1,261 1,110 994 Derivative Collateral Fees 168 237 309 372 451 Information Technology and Telecommunications 1,067 976 973 971 971 Marketing and Advertising 776 718 658 435 327 Intangible Asset Amortization 226 231 230 230 230 FHLB Prepayment Penalty 982 — — — — Other Expense 1,497 1,659 1,618 1,811 1,489 Total Noninterest Expense 22,170 20,238 19,956 18,941 18,136 Income Before Income Taxes 22,841 17,147 15,096 15,138 12,651 Provision for Income Taxes 5,435 3,813 3,495 3,618 3,018 Net Income 17,406 13,334 11,601 11,520 9,633 Preferred Stock Dividends (1,013 ) (1,014 ) (1,013 ) (1,014 ) (1,013 ) Net Income Available to Common Shareholders $ 16,393 $ 12,320 $ 10,588 $ 10,506 $ 8,620 Earnings Per Share Basic $ 0.59 $ 0.45 $ 0.38 $ 0.38 $ 0.31 Diluted 0.58 0.43 0.38 0.38 0.31 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 March 31, 2026 December 31, 2025 March 31, 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 $ 97,488 $ 771 3.21 % $ 182,129 $ 1,649 3.59 % $ 205,897 $ 2,056 4.05 % Investment Securities: Taxable Investment Securities 506,154 5,530 4.43 671,444 8,001 4.73 768,591 9,033 4.77 Tax-Exempt Investment Securities (1) 119,582 1,764 5.98 147,832 2,177 5.84 35,549 461 5.26 Total Investment Securities 625,736 7,294 4.73 819,276 10,178 4.93 804,140 9,494 4.79 Loans(1)(2) 4,336,869 62,102 5.81 4,239,936 61,746 5.78 3,899,258 53,979 5.61 Federal Home Loan Bank Stock 19,337 546 11.45 23,359 496 8.43 18,988 435 9.28 Total Interest Earning Assets 5,079,430 70,713 5.65 % 5,264,700 74,069 5.58 % 4,928,283 65,964 5.43 % Noninterest Earning Assets 163,331 173,855 143,163 Total Assets $ 5,242,761 $ 5,438,555 $ 5,071,446 Interest Bearing Liabilities: Deposits: Interest Bearing Transaction Deposits $ 888,301 $ 6,936 3.17 % $ 891,419 $ 7,912 3.52 % $ 855,564 $ 8,189 3.88 % Savings and Money Market Deposits 1,411,090 11,423 3.28 1,445,588 12,597 3.46 1,302,349 11,935 3.72 Time Deposits 252,426 2,333 3.75 333,904 3,282 3.90 328,902 3,309 4.08 Brokered Deposits 804,618 8,101 4.08 775,750 8,412 4.30 834,866 8,670 4.21 Total Interest Bearing Deposits 3,356,435 28,793 3.48 3,446,661 32,203 3.71 3,321,681 32,103 3.92 Federal Funds Purchased 24,478 238 3.95 496 5 4.22 — — — Notes Payable — — — — — — 13,750 258 7.60 FHLB Advances 336,472 2,438 2.94 449,065 3,524 3.11 354,556 2,156 2.47 Subordinated Debentures 108,730 1,849 6.90 108,629 1,890 6.90 79,710 983 5.00 Total Interest Bearing Liabilities 3,826,115 33,318 3.53 % 4,004,851 37,622 3.73 % 3,769,697 35,500 3.82 % Noninterest Bearing Liabilities: Noninterest Bearing Transaction Deposits 834,916 854,687 767,235 Other Noninterest Bearing Liabilities 56,905 69,362 69,106 Total Noninterest Bearing Liabilities 891,821 924,049 836,341 Shareholders' Equity 524,825 509,655 465,408 Total Liabilities and Shareholders' Equity $ 5,242,761 $ 5,438,555 $ 5,071,446 Net Interest Income / Interest Rate Spread 37,395 2.11 % 36,447 1.86 % 30,464 1.61 % Net Interest Margin(3) 2.99 % 2.75 % 2.51 % Taxable Equivalent Adjustment: Tax-Exempt Investment Securities and Loans (748 ) (760 ) (256 ) Net Interest Income $ 36,647 $ 35,687 $ 30,208 _________________________________ (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 Asset Quality Summary (unaudited) As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, (dollars in thousands) 2026 2025 2025 2025 2025 Allowance for Credit Losses Balance at Beginning of Period $ 56,443 $ 56,390 $ 55,765 $ 53,766 $ 52,277 Provision for Credit Losses 1,350 1,250 900 2,000 1,500 Charge-offs (658 ) (1,259 ) (276 ) (6 ) (12 ) Recoveries 142 62 1 5 1 Net Charge-offs (516 ) (1,197 ) (275 ) (1 ) (11 ) Balance at End of Period $ 57,277 $ 56,443 $ 56,390 $ 55,765 $ 53,766 Allowance for Credit Losses to Total Loans 1.31 % 1.31 % 1.34 % 1.35 % 1.34 % As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, (dollars in thousands) 2026 2025 2025 2025 2025 Provision for Credit Losses on Loans and Leases $ 1,350 $ 1,250 $ 900 $ 2,000 $ 1,500 Provision for (Recovery of) Credit Losses for Off-Balance Sheet Credit Exposures (150 ) 200 200 — — Provision for Credit Losses $ 1,200 $ 1,450 $ 1,100 $ 2,000 $ 1,500 As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, (dollars in thousands) 2026 2025 2025 2025 2025 Selected Asset Quality Data Loans 30-89 Days Past Due $ 494 $ 968 $ 2,906 $ 12,492 $ 466 Loans 30-89 Days Past Due to Total Loans 0.01 % 0.02 % 0.07 % 0.30 % 0.01 % Nonperforming Loans $ 11,715 $ 22,034 $ 9,991 $ 10,134 $ 10,290 Nonperforming Loans to Total Loans 0.27 % 0.51 % 0.24 % 0.24 % 0.26 % Nonaccrual Loans to Total Loans 0.27 0.51 0.24 0.24 0.26 Nonaccrual Loans and Loans Past Due 90 Days and Still Accruing to Total Loans 0.27 0.51 0.24 0.24 0.26 Foreclosed Assets $ — $ — $ — $ 185 $ — Nonperforming Assets(1) 11,715 22,034 9,991 10,319 10,290 Nonperforming Assets to Total Assets(1) 0.22 % 0.41 % 0.19 % 0.19 % 0.20 % Net Loan Charge-Offs (Annualized) to Average Loans 0.05 0.11 0.03 0.00 0.00 Watchlist/Special Mention Risk Rating Loans $ 47,681 $ 47,823 $ 40,642 $ 53,282 $ 38,346 Substandard Risk Rating Loans 43,074 52,956 58,074 44,986 31,587 _________________________________ (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 March 31, December 31, September 30, June 30, March 31, (dollars in thousands) 2026 2025 2025 2025 2025 Pre-Provision Net Revenue Noninterest Income $ 9,564 $ 3,148 $ 2,061 $ 3,627 $ 2,079 Less: Gain on Sales of Securities (7,251 ) (80 ) (59 ) (474 ) (1 ) Less: FHLB Advance Prepayment Income — — — (301 ) — Total Operating Noninterest Income 2,313 3,068 2,002 2,852 2,078 Plus: Net Interest Income 36,647 35,687 34,091 32,452 30,208 Net Operating Revenue $ 38,960 $ 38,755 $ 36,093 $ 35,304 $ 32,286 Noninterest Expense $ 22,170 $ 20,238 $ 19,956 $ 18,941 $ 18,136 Total Operating Noninterest Expense $ 22,170 $ 20,238 $ 19,956 $ 18,941 $ 18,136 Pre-Provision Net Revenue $ 16,790 $ 18,517 $ 16,137 $ 16,363 $ 14,150 Plus: Non-Operating Revenue Adjustments 7,251 80 59 775 1 Less: Provision for Credit Losses 1,200 1,450 1,100 2,000 1,500 Provision for Income Taxes 5,435 3,813 3,495 3,618 3,018 Net Income $ 17,406 $ 13,334 $ 11,601 $ 11,520 $ 9,633 Average Assets $ 5,242,761 $ 5,438,555 $ 5,372,443 $ 5,162,182 $ 5,071,446 Pre-Provision Net Revenue Return on Average Assets 1.30 % 1.35 % 1.19 % 1.27 % 1.13 % Adjusted Pre-Provision Net Revenue Net Operating Revenue $ 38,960 $ 38,755 $ 36,093 $ 35,304 $ 32,286 Noninterest Expense $ 22,170 $ 20,238 $ 19,956 $ 18,941 $ 18,136 Less: Merger-related Expenses — (346 ) (530 ) (540 ) (565 ) Less: FHLB Prepayment Penalty (982 ) — — — — Adjusted Total Operating Noninterest Expense $ 21,188 $ 19,892 $ 19,426 $ 18,401 $ 17,571 Adjusted Pre-Provision Net Revenue $ 17,772 $ 18,863 $ 16,667 $ 16,903 $ 14,715 Adjusted Pre-Provision Net Revenue Return on Average Assets 1.37 % 1.38 % 1.23 % 1.31 % 1.18 % Core Net Interest Margin Net Interest Income (Tax-equivalent Basis) $ 37,395 $ 36,447 $ 34,614 $ 32,770 $ 30,464 Less: Loan Fees (1,257 ) (1,041 ) (966 ) (1,019 ) (719 ) Purchase Accounting Accretion: Loan Accretion (324 ) (546 ) (380 ) (425 ) (342 ) Bond Accretion (22 ) (33 ) (89 ) (152 ) (578 ) Bank-Owned Certificates of Deposit Accretion — (16 ) (6 ) (4 ) (7 ) Deposit Certificates of Deposit Accretion — — (13 ) (37 ) (38 ) Total Purchase Accounting Accretion (346 ) (595 ) (488 ) (618 ) (965 ) Core Net Interest Income (Tax-equivalent Basis) $ 35,792 $ 34,811 $ 33,160 $ 31,133 $ 28,780 Average Interest Earning Assets $ 5,079,430 $ 5,264,700 $ 5,223,139 $ 5,019,058 $ 4,928,283 Core Net Interest Margin 2.86 % 2.62 % 2.52 % 2.49 % 2.37 % Core Loan Yield Loan Interest Income (Tax-equivalent Basis) $ 62,102 $ 61,746 $ 60,317 $ 58,122 $ 53,979 Less: Loan Fees (1,257 ) (1,041 ) (966 ) (1,019 ) (719 ) Loan Accretion (324 ) (546 ) (380 ) (425 ) (342 ) Core Loan Interest Income $ 60,521 $ 60,159 $ 58,971 $ 56,678 $ 52,918 Average Loans $ 4,336,869 $ 4,239,936 $ 4,132,987 $ 4,064,540 $ 3,899,258 Core Loan Yield 5.66 % 5.63 % 5.66 % 5.59 % 5.50 % Bridgewater Bancshares, Inc. and Subsidiaries Non-GAAP Financial Measures (unaudited) For the Three Months Ended March 31, December 31, September 30, June 30, March 31, (dollars in thousands) 2026 2025 2025 2025 2025 Efficiency Ratio Noninterest Expense $ 22,170 $ 20,238 $ 19,956 $ 18,941 $ 18,136 Less: Amortization of Intangible Assets (226 ) (231 ) (230 ) (230 ) (230 ) Adjusted Noninterest Expense $ 21,944 $ 20,007 $ 19,726 $ 18,711 $ 17,906 Net Interest Income $ 36,647 $ 35,687 $ 34,091 $ 32,452 $ 30,208 Noninterest Income 9,564 3,148 2,061 3,627 2,079 Less: Gain on Sales of Securities (7,251 ) (80 ) (59 ) (474 ) (1 ) Adjusted Operating Revenue $ 38,960 $ 38,755 $ 36,093 $ 35,605 $ 32,286 Efficiency Ratio 56.3 % 51.6 % 54.7 % 52.6 % 55.5 % Adjusted Efficiency Ratio Noninterest Expense $ 22,170 $ 20,238 $ 19,956 $ 18,941 $ 18,136 Less: Amortization of Intangible Assets (226 ) (231 ) (230 ) (230 ) (230 ) Less: Merger-related Expenses — (346 ) (530 ) (540 ) (565 ) Less: FHLB Advance Prepayment Penalty (982 ) — — — — Adjusted Noninterest Expense $ 20,962 $ 19,661 $ 19,196 $ 18,171 $ 17,341 Net Interest Income $ 36,647 $ 35,687 $ 34,091 $ 32,452 $ 30,208 Noninterest Income 9,564 3,148 2,061 3,627 2,079 Less: Gain on Sales of Securities (7,251 ) (80 ) (59 ) (474 ) (1 ) Less: FHLB Advance Prepayment Income — — — (301 ) — Adjusted Operating Revenue $ 38,960 $ 38,755 $ 36,093 $ 35,304 $ 32,286 Adjusted Efficiency Ratio 53.8 % 50.7 % 53.2 % 51.5 % 53.7 % Adjusted Noninterest Expense to Average Assets (Annualized) Noninterest Expense $ 22,170 $ 20,238 $ 19,956 $ 18,941 $ 18,136 Less: Merger-related Expenses — (346 ) (530 ) (540 ) (565 ) Less: FHLB Advance Prepayment Penalty (982 ) — — — — Adjusted Noninterest Expense $ 21,188 $ 19,892 $ 19,426 $ 18,401 $ 17,571 Average Assets $ 5,242,761 $ 5,438,555 $ 5,372,443 $ 5,162,182 $ 5,071,446 Adjusted Noninterest Expense to Average Assets (Annualized) 1.64 % 1.45 % 1.43 % 1.43 % 1.41 % Tangible Common Equity and Tangible Common Equity/Tangible Assets Total Shareholders' Equity $ 528,424 $ 517,095 $ 497,463 $ 476,282 $ 468,975 Less: Preferred Stock (66,514 ) (66,514 ) (66,514 ) (66,514 ) (66,514 ) Total Common Shareholders' Equity 461,910 450,581 430,949 409,768 402,461 Less: Intangible Assets (18,685 ) (18,912 ) (19,142 ) (19,372 ) (19,602 ) Tangible Common Equity $ 443,225 $ 431,669 $ 411,807 $ 390,396 $ 382,859 Total Assets $ 5,335,396 $ 5,407,002 $ 5,359,994 $ 5,296,673 $ 5,136,808 Less: Intangible Assets (18,685 ) (18,912 ) (19,142 ) (19,372 ) (19,602 ) Tangible Assets $ 5,316,711 $ 5,388,090 $ 5,340,852 $ 5,277,301 $ 5,117,206 Tangible Common Equity/Tangible Assets 8.34 % 8.01 % 7.71 % 7.40 % 7.48 % Tangible Book Value Per Share Book Value Per Common Share $ 16.60 $ 16.23 $ 15.62 $ 14.92 $ 14.60 Less: Effects of Intangible Assets (0.67 ) (0.68 ) (0.69 ) (0.71 ) (0.71 ) Tangible Book Value Per Common Share $ 15.93 $ 15.55 $ 14.93 $ 14.21 $ 13.89 Return on Average Tangible Common Equity Net Income Available to Common Shareholders $ 16,393 $ 12,320 $ 10,588 $ 10,506 $ 8,620 Average Shareholders' Equity $ 524,825 $ 509,655 $ 485,869 $ 471,700 $ 465,408 Less: Average Preferred Stock (66,514 ) (66,514 ) (66,514 ) (66,514 ) (66,514 ) Average Common Equity 458,311 443,141 419,355 405,186 398,894 Less: Effects of Average Intangible Assets (18,816 ) (19,042 ) (19,274 ) (19,504 ) (19,738 ) Average Tangible Common Equity $ 439,495 $ 424,099 $ 400,081 $ 385,682 $ 379,156 Return on Average Tangible Common Equity 15.13 % 11.53 % 10.50 % 10.93 % 9.22 % Bridgewater Bancshares, Inc. and Subsidiaries Non-GAAP Financial Measures (unaudited) For the Three Months Ended March 31, December 31, September 30, June 30, March 31, (dollars in thousands) 2026 2025 2025 2025 2025 Adjusted Diluted Earnings Per Common Share Net Income Available to Common Shareholders $ 16,393 $ 12,320 $ 10,588 $ 10,506 $ 8,620 Add: Merger-related Expenses — 346 530 540 565 Add: FHLB Advance Prepayment Penalty 982 — — — — Less: FHLB Advance Prepayment Income — — — (301 ) — Less: Gain on Sales of Securities (7,251 ) (80 ) (59 ) (474 ) (1 ) Total Adjustments (6,269 ) 266 471 (235 ) 564 Less: Tax Impact of Adjustments 1,492 (59 ) (110 ) 56 (135 ) Adjusted Net Income Available to Common Shareholders $ 11,616 $ 12,527 $ 10,949 $ 10,327 $ 9,049 Diluted Weighted Average Shares Outstanding 28,490,176 28,354,756 28,190,406 27,998,008 28,036,506 Adjusted Diluted Earnings Per Common Share $ 0.41 $ 0.44 $ 0.39 $ 0.37 $ 0.32 Adjusted Return on Average Assets Net Income $ 17,406 $ 13,334 $ 11,601 $ 11,520 $ 9,633 Add: Total Adjustments (6,269 ) 266 471 (235 ) 564 Less: Tax Impact of Adjustments 1,492 (59 ) (110 ) 56 (135 ) Adjusted Net Income $ 12,629 $ 13,541 $ 11,962 $ 11,341 $ 10,062 Average Assets $ 5,242,761 $ 5,438,555 $ 5,372,443 $ 5,162,182 $ 5,071,446 Adjusted Return on Average Assets 0.98 % 0.99 % 0.88 % 0.88 % 0.80 % Adjusted Return on Average Shareholders' Equity Adjusted Net Income $ 12,629 $ 13,541 $ 11,962 $ 11,341 $ 10,062 Average Shareholders' Equity $ 524,825 $ 509,655 $ 485,869 $ 471,700 $ 465,408 Adjusted Return on Average Shareholders' Equity 9.76 % 10.54 % 9.77 % 9.64 % 8.77 % Adjusted Return on Average Tangible Common Equity Adjusted Net Income Available to Common Shareholders $ 11,616 $ 12,527 $ 10,949 $ 10,327 $ 9,049 Average Tangible Common Equity $ 439,495 $ 424,099 $ 400,081 $ 385,682 $ 379,156 Adjusted Return on Average Tangible Common Equity 10.72 % 11.72 % 10.86 % 10.74 % 9.68 % Source: Bridgewater Bancshares, Inc.