Bridgewater Bancshares, Inc. · NASDAQ:BWB
Bridgewater Bancshares — Q1 2025 Earnings Presentation
37 slides from Bridgewater Bancshares's earnings presentation, May 2, 2025
Slide 1: Investor Presentation First Quarter 2025
i ‘a SS Tear i= INVESTOR PRESENTATION FIRST QUARTER 2025 cy BRIDGEWATER BANCSHARES, INC.
Slide 2: Disclaimer - Forward-Looking Statements
2 Disclaimer Forward-Looking Statements This presentation 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, estimate
Slide 3: The Finest Entrepreneurial Bank Company Overview
3 The Finest Entrepreneurial Bank Company Overview Branch-Light Model in Attractive Twin Cities Market Name: Bridgewater Bancshares, Inc. Headquarters: St. Louis Park, MN Ticker: NASDAQ: BWB; BWBBP Assets: $5.1 Billion Loans: $4.0 Billion Deposits: $4.2 Billion Shareholders’ Equity: $469.0 Million S
Slide 4: Strategic Leadership Team with Broad Skill Sets and Industry Expertise
4 Strategic Leadership Team (SLT) with Broad Skill Sets and Industry Expertise Jerry Baack Chairman and Chief Executive Officer • Former regulator and responsible for all aspects of BWB formation • Lead founder of BWB in 2005 • 30+ years of banking experience Jeff Shellberg EVP and Chief Credit Offi
Slide 5: A Culture-Driven Growth Story
5 A Culture-Driven Growth Story Truly Unconventional Culture Highly Efficient Business Model Robust Balance Sheet Growth Proactive Risk Management • Entrepreneurial spirit unlike the culture of a typical bank • Modern headquarters with an open layout promoting team member and client collaboration •
Slide 6: Our Core Values
Our Core Values 6 Unconventional. Our clients notice a difference. Responsive. Under promise, over deliver. Dedicated. Don’t stop until you get it done. Growth. If you aren’t moving forward, where are you going? Accurate. It’s more than just an expectation.
Slide 7: An Award-Winning Workplace Culture
An Award-Winning Workplace Culture “In today’s environment, it is more important than ever to be able to recruit, retain and develop top talent. At Bridgewater, we have demonstrated an ability to do this through our unconventional culture and employee experience, extensive team member referral netwo
Slide 8: A Responsive Service Model
A Responsive Service Model Our clients can expect… • Responsive support and simple solutions • A local bank of choice in a market where many local banks have been acquired by out-of-state buyers • Flexibility, market expertise and strong network connections The “Proven Process” for Our Clients • BES
Slide 9: A Commitment to Our Communities
A Commitment to Our Communities Our communities can expect… Bridgewater’s commitment to investing, lending and volunteering in ways that serve low-to-moderate income segments in the Twin Cities “Outstanding” Rating for Community Reinvestment Act Performance FDIC, 2023 $327K Total Contributions in 20
Slide 10: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) We are committed to establishing and advancing impactful initiatives that support our corporate responsibility as one of the largest locally-led banks in the Twin Cities, while regularly sharing our progress with our stakeholders Our ESG Commitment Our ESG
Slide 11: Attractive Twin Cities Market Built for Business
11 Attractive Twin Cities Market Built for Business #3 Fortune 500 companies per capita (17)1 Large Corporate Presence #1 State with highest average credit score (742)2 Credit Worthy Population #5 Best state for economic opportunity3 Economic Opportunity #6 Top state for business4 Top State for Busi
Slide 12: Deposit Market Share Momentum in the Twin Cities Continues
12 Deposit Market Share Momentum in the Twin Cities Continues Total Deposits – Minneapolis/St. Paul MSA1 2012 2024 Continuing to Gain Market Share • Top-heavy deposit market (top 2 market share = 62%) • Top 2 have combined to steadily lose market share over the past decade-plus (2012: 77% / 2024: 62
Slide 13: History of Robust Organic Asset Growth
13 History of Robust Organic Asset Growth $1,184 $4,821 $76 $245 $929 $1,260 $1,617 $1,974 $2,269 $2,927 $3,478 $4,346 $4,612 $5,066 $5,137 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1Q25 Organic Acquired Assets Proven ability to consistently generate robust asset growth primarily in the Twin
Slide 14: Robust Loan Growth Trends Continue
14 Robust Loan Growth Trends Continue $3,752 $117 $3,784 $3,800 $3,686 $3,869 $4,020 1Q24 2Q24 3Q24 4Q24 1Q25 Dollars in millions 1 Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000 $2,819 $3,569 $3,724 $3,869 $4,020 2021 2022 2023 2
Slide 15: Strong Diversification Within Key Portfolios
15 Strong Diversification Within Key Portfolios Class A 28% Class B 10% Class C 34% Affordable Housing 28% Size YoY Growth Go-to-Market Strategy Competitors Growth Outlook Key Stats Portfolio Diversification Multifamily CRE Nonowner Occupied Construction & Development C&I Bank of choice in the Twin
Slide 16: Well-Diversified Loan Portfolio With Multifamily and CRE Expertise
16 Well-Diversified Loan Portfolio With Multifamily and CRE Expertise CRE NOO 26% Multifamily 38% C&D 4% C&I 13% CRE OO 5% 1-4 Family 12% Leases 1% Consumer & Other 1% CRE NOO 27% Multifamily 21% C&D 15% C&I 13% CRE OO 6% 1-4 Family 18% Consumer & Other 0% $0.8B Evolution of Loan Mix by Type 2015 1Q
Slide 17: CRE Concentration Driven by a Proven, Lower Risk Multifamily Portfolio
17 CRE Concentration Driven by a Proven, Lower Risk Multifamily Portfolio Class A 28% Class B 10% Class C 34% Affordable Housing 28% (0.20)% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% Multi-family CRE 1-4 Family C&I C&D Consumer (ex. cards & auto) Total Loans Last 5 Years Last 10 Years Last 15
Slide 18: Expertise in the Affordable Housing Space
18 Expertise in the Affordable Housing Space 81-unit affordable housing property in Bloomington, MN 62-unit affordable housing property in Columbia Heights, MN • Leveraging affordable housing expertise to support communities and clients in the Twin Cities and across the country • $597M affordable ho
Slide 19: Managing Office-Related Risk
19 Managing Office-Related Risk 1 Excludes medical office of $96 million Data as of March 31, 2025 Percent of Total Loans Average Loan Size 5.0% $2.3M Weighted Average LTV 58% CRE NOO Office by Geography • Majority of CRE NOO office exposure in the Twin Cities suburbs • Only 4 loans totaling $28M lo
Slide 20: Strong Core Deposit Momentum Continues
20 Strong Core Deposit Momentum Continues Dollars in millions A track record of strong deposit growth… • Strong and growing brand taking market share in the Twin Cities • New client and banker acquisition opportunities due to M&A disruption • Supplemented core deposits with wholesale funding to supp
Slide 21: A Spread-Based Revenue Model
21 A Spread-Based Revenue Model $28,567 $25,872 $25,421 $25,314 $24,631 $24,996 $25,599 $26,967 $30,208 $1,943 $1,415 $1,726 $1,409 $1,550 $1,763 $1,522 $2,533 $2,079 $30,510 $27,287 $27,147 $26,723 $26,181 $26,759 $27,121 $29,500 $32,287 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Revenue Growth C
Slide 22: NIM Expansion and Net Interest Income Growth
22 NIM Expansion and Net Interest Income Growth $24,023 $24,229 $24,631 $26,129 $28,524 $608 $767 $968 $747 $719 $91 $965 $24,631 $24,996 $25,599 $26,967 $30,208 2.24% 2.24% 2.24% 2.32% 2.51% 2.18% 2.17% 2.16% 2.24% 2.37% 1Q24 2Q24 3Q24 4Q24 1Q25 Net Interest Margin1 Core Net Interest Income Loan Fe
Slide 23: Loan Portfolio Repricing
23 Loan Portfolio Repricing 19% 20% 24% 14% 15% 8% $113 $120 $142 $85 $89 $51 Less Than 1 Year 1 to 2 Years 2 to 3 Years 3 to 4 Years 4 to 5 Years 5+ Years 22% 15% 16% 14% 14% 19% $614 $405 $435 $370 $388 $507 Less Than 1 Year 1 to 2 Years 2 to 3 Years 3 to 4 Years 4 to 5 Years 5+ Years Fixed, 68% V
Slide 24: A Highly Efficient Business Model
24 A Highly Efficient Business Model 42.0% 41.5% 53.0% 57.9% 55.5% 56.9% 56.2% 60.8% 61.6% 60.1% 2021 2022 2023 2024 1Q25 YTD BWB An Efficiency Ratio1 Consistently Below Peers 1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation. 2 Includes publicly-traded banks on maj
Slide 25: Modernizing Technology Tools to Support Growth and Efficiency
25 Modernizing Technology Tools to Support Growth and Efficiency Client-Facing • Commercial online banking upgrade completed in 2023 • Collaborative technology tools integrated into BWB Corporate Center • Cybersecurity threat detection and response Scalable core to support growth outlook Core Bankin
Slide 26: Scaling Enterprise Risk Management Across a Growing Organization
26 Scaling Enterprise Risk Management Across a Growing Organization Manage and mitigate dynamic risks while enhancing shareholder value, being responsive to clients, and delivering simple solutions in unconventional ways BWB Risk Management Philosophy Enterprise Risk Management Attributes in Place T
Slide 27: A Strong Credit Culture
A Strong Credit Culture 5-Year Peak Annual Net Charge-off Ratio vs. Peers 5-Year Peak Quarterly Nonperforming Assets2 / Assets vs. Peers 0.03% BWB Peer Bank Median1 0.14% 0.20% BWB Peer Bank Median1 0.68% 1 Includes publicly-traded banks on major exchanges with total assets between $3 billion and $1
Slide 28: Credit Risk Management and Oversight Driving Strong Asset Quality
28 Credit Risk Management and Oversight Driving Strong Asset Quality $722 $639 $919 $301 $10,290 0.02% 0.01% 0.02% 0.01% 0.20% 2021 2022 2023 2024 1Q25 $40,020 $47,996 $50,494 $52,277 $53,766 1.42% 1.34% 1.36% 1.35% 1.34% 2021 2022 2023 2024 1Q25 Nonperforming Assets2 NPAs remain low despite one CBD
Slide 29: High Quality Securities Portfolio
29 High Quality Securities Portfolio 38% 34% 31% 32% 33% 21% 22% 17% 16% 15% 21% 23% 21% 17% 17% 16% 20% 22% 23% 21% 15% $633 13% 12% $601 $665 $768 $765 1Q24 2Q24 3Q24 4Q24 1Q25 Mortgage-Backed Securities Municipal Bonds U.S. Treasuries Corporate Securities Securities Available for Sale Portfolio (
Slide 30: Ample Liquidity and Borrowing Capacity
12.1% 11.3% 14.5% 13.2% 11.9% 35.5% 36.1% 34.2% 32.2% 34.0% $2,249 $2,222 $2,290 $2,296 $2,357 1Q24 2Q24 3Q24 4Q24 1Q25 30 Ample Liquidity and Borrowing Capacity 1 Excludes $291M of pledged securities at March 31, 2025 Dollars in millions Off-Balance Sheet Liquidity as a % of Assets On-Balance Sheet
Slide 31: Stable Capital Position
31 Stable Capital Position 1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation Capital Priorities 1 3 2 Organic Growth Share Repurchases M&A 4 Dividends Drive profitability by supporting a proven organic loan growth engine Opportunistically return capital to sharehold
Slide 32: Near-Term Expectations
32 Near-Term Expectations • Mid-to-high single digit loan growth for full-year 2025 • Focus on profitable growth while aligning loan growth with core deposit growth over time • Target loan-to-deposit ratio between 95% and 105% Balance Sheet Growth • Slower pace of net interest margin expansion in 2Q
Slide 33: 2025 Strategic Priorities
33 2025 Strategic Priorities Return to More Normalized Levels of Profitable Growth Continue to Gain Loan and Deposit Market Share Leverage Technology to Support Business Growth Execute on M&A Integration and Readiness Initiatives • Well positioned given efforts to optimize the balance sheet in 2024,
Slide 34: Bridgewater Bancshares, Inc.
iw BRIDGEWATER x4 BANCSHARES, INC
Slide 35: Reconciliation of Non-GAAP Financial Measures
35 Reconciliation of Non-GAAP Financial Measures Dollars in thousands March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 Adjusted Diluted Earnings Per Common Share Net Income Available to Common Shareholders $ 6,818 $ 7,101 $ 7,662 $ 7,190 $ 8,620 Add: Merger-related Ex
Slide 36: Reconciliation of Non-GAAP Financial Measures
36 Reconciliation of Non-GAAP Financial Measures Dollars in thousands December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 Efficiency Ratio: Noninterest Expense $ 48,095 $ 56,620 $ 59,320 $ 63,300 Less: Amortization Intangible Assets (191) (191) (100) (78) Adjusted Noninterest Exp
Slide 37: Reconciliation of Non-GAAP Financial Measures - Tangible Book Value Per Share
37 Reconciliation of Non-GAAP Financial Measures Tangible Book Value Per Share December 31, 2016 March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 March 31, 2019 Book Value Per Common Share $ 4.69 $ 4.91 $ 5.23 $ 5.43
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