Bridgewater Bancshares, Inc. · NASDAQ:BWB
Bridgewater Bancshares — Debt Investor Presentation (June 2025)
43 slides from Bridgewater Bancshares's debt investor presentation, Jun 24, 2025
Slide 1: Subordinated Notes Offering Investor Presentation
SUBORDINATED NOTES OFFERING INVESTOR PRESENTATION JUNE 2025 i 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: Safe Harbor Statement
3 Safe Harbor Statement Safe Harbor Statement The information contained in this presentation is a summary and it is not complete. It has been prepared for use only in connection with the private placement (the “Placement”) of securities (the “Securities”) of Bridgewater Bancshares, Inc. (the “Compan
Slide 4: Table of Contents
4 Table of Contents Terms of the Proposed Offering Bridgewater Bancshares, Inc. Overview Financial Highlights and Profitability Balance Sheet Composition and Trends Asset Quality Capital and Liquidity Appendix 1 2 3 4 5 6 7
Slide 5: Terms of the Proposed Offering
5 1 Terms of the Proposed Offering
Slide 6: Terms of the Proposed Offering
6 Terms of the Proposed Offering Issuer Security • Bridgewater Bancshares, Inc. (NASDAQCM: BWB) • Bank Holding Company Subordinated Notes Issuance Type • Regulation D Private Placement with Registration Rights Security Rating • BBB- / Stable Outlook (Kroll Bond Rating Agency) Offering Size • $75 Mil
Slide 7: Bridgewater Bancshares, Inc. Overview
7 2 Bridgewater Bancshares, Inc. Overview
Slide 8: The Finest Entrepreneurial Bank Company Overview
8 The Finest Entrepreneurial Bank Company Overview Branch-Light Model in Attractive Twin Cities Market Name: Bridgewater Bancshares, Inc. Headquarters: St. Louis Park, MN Ticker: NASDAQCM: BWB; BWBBP Assets: $5.1 Billion Loans: $4.0 Billion Deposits: $4.2 Billion Shareholders’ Equity: $469.0 Million
Slide 9: A Culture-Driven Growth Story
9 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 10: History of Robust Organic Asset Growth
10 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 organic asset growth primarily in
Slide 11: Deposit Market Share Momentum in the Twin Cities Continues
11 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 12: Our History
ww BRIDGEWATER Our History 7 BANCSHARES, INC January: Bridgewater Bank: June: Private oerngralees Feaches profit in third $52 millon oven ed ssi penne peeraee oe eens Paci peters Porrrrs Soemiveses ae Sameera olin ayn 2008 A etn otto ee am a ae jot teas scat peepee peli tn cay November Srlgewater Se
Slide 13: 2025 Strategic Priorities
13 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 14: Strategic Leadership Team with Broad Skill Sets and Industry Expertise
14 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 • 35+ years of banking experience Jeff Shellberg EVP and Chief Credit Off
Slide 15: Financial Highlights and Profitability
15 3 Financial Highlights and Profitability
Slide 16: Financial Highlights
16 Financial Highlights Profitability Net Income $40.0 million $32.8 million $9.6 million Pre-Provision Net Revenue (“PPNR”) 1 $51.6 million $45.9 million $14.2 million ROAA 0.89% 0.70% 0.77% PPNR ROAA 1 1.15% 0.98% 1.13% ROATCE 1 10.53% 7.75% 9.22% Net Interest Margin (FTE) 2.42% 2.26% 2.51% Effici
Slide 17: Positive Profitability Trends
17 Positive Profitability Trends Return PPNR ROA1 $24,631 $24,996 $25,599 $26,967 $30,208 $1,550 $1,763 $1,522 $2,533 $2,079 $26,181 $26,759 $27,121 $29,500 $32,287 1Q24 2Q24 3Q24 4Q24 1Q25 $10,899 $10,900 $11,389 $12,688 $14,150 $7,831 $8,115 $8,675 $8,204 $9,633 0.95% 0.94% 0.96% 1.05% 0.98% 1.13%
Slide 18: NIM Expansion and Net Interest Income Growth
18 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 19: Liability-Sensitive Balance Sheet
19 Liability-Sensitive Balance Sheet Estimated Change in NII From Immediate Interest Rate Shocks +100 bps -100 bps Liability-sensitive balance sheet well positioned for lower interest rates and a steepening yield curve Loan Portfolio Considerations • Loan portfolio most sensitive to changes in the 3
Slide 20: Loan Portfolio Repricing
20 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 21: A Highly Efficient Business Model
21 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 majo
Slide 22: Balance Sheet Composition and Trends
22 4 Balance Sheet Composition and Trends
Slide 23: Improving Balance Sheet Trends Since 2023
23 Improving Balance Sheet Trends Since 2023 Deposit Growth Momentum Focus on Core Deposit Growth1 Loan Growth Returns Reduced Need for Borrowings2 Loan-to-Deposit Ratio Within Target Range $3.9 $0.2 $3.4 $3.6 $3.7 $3.7 $3.8 $3.8 $3.7 $4.1 $4.2 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 $2.9 $0.2
Slide 24: Strong Core Deposit Momentum Continues
24 Strong Core Deposit Momentum Continues 1 Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000 Dollars in millions A track record of strong deposit growth… • Strong and growing brand taking market share in the Twin Cities • New client
Slide 25: Robust Loan Growth Trends Continue
25 Robust Loan Growth Trends Continue $3,752 $117 $3,784 $3,800 $3,686 $3,869 $4,020 1Q24 2Q24 3Q24 4Q24 1Q25 1 Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000 Dollars in millions $2,819 $3,569 $3,724 $3,869 $4,020 2021 2022 2023 2
Slide 26: Well-Diversified Loan Portfolio With Multifamily and CRE Expertise
26 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 27: Asset Quality
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Slide 28: 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 29: CRE Concentration Driven by a Proven, Lower Risk Multifamily Portfolio
29 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 30: Managing Office-Related Risk
30 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 31: Asset Quality Remains Strong
31 Asset Quality Remains Strong 1 Includes publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion as of March 31, 2025 (Source: S&P Capital IQ) 2 Nonaccrual loans plus loans 90 days past due and still accruing and foreclosed assets Dollars in thousands $(3) $(2
Slide 32: Watch/Special Mention and Substandard Loans Remain at Low Levels
Watch/Special Mention and Substandard Loans Remain at Low Levels Multifamily 59.4% CRE NOO Retail 16.5% CRE NOO Other 4.7% CRE OO 12.1% C&I 5.2% 1-4 Family 2.1% $38 Million Watch/Special Mention List Loans Substandard Loans C&I 40.3% CRE NOO Office 27.4% CRE NOO Hotels 9.3% CRE NOO Retail 6.4% CRE N
Slide 33: Capital and Liquidity
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Slide 34: Capital Resources to Support Growth
34 Capital Resources to Support Growth 1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation 9.13% 8.50% 8.47% 8.40% 8.48% 8.72% 9.07% 9.16% 9.21% 9.41% 9.79% 9.08% 9.03% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Common Equity Tier 1 Capital Ratio
Slide 35: Pro Forma Capital Ratios
35 Pro Forma Capital Ratios 1 For illustrative purposes, assumes the completion of a $75 million subordinated debt offering with a 1.25% placement fee and $300 thousand of fixed offering costs and the redemption of $50 million of subordinated notes due 2030, in each case as of March 31, 2025; assume
Slide 36: Double Leverage and Debt Service Coverage
36 Double Leverage and Debt Service Coverage 1 For illustrative purposes, assumes the completion of a $75 million subordinated debt offering with a 1.25% placement fee and $300 thousand of fixed offering costs and the redemption of $50 million of subordinated notes due 2030, in each case as of March
Slide 37: 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 37 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 38: High Quality Securities Portfolio
38 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 39: Appendix
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Slide 40: Reconciliation of Non-GAAP Financial Measures
40 Reconciliation of Non-GAAP Financial Measures Dollars in thousands March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 December 31, 2023 December 31, 2024 Return on Average Tangible Common Equity Net Income Available to Common Shareholders $ 6,818 $ 7,101 $ 7,662 $ 7,
Slide 41: Reconciliation of Non-GAAP Financial Measures
41 Reconciliation of Non-GAAP Financial Measures Dollars in thousands March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 December 31, 2023 December 31, 2024 Pre-Provision Net Revenue: Noninterest Income $ 1,550 $ 1,763 $ 1,522 $ 2,533 $ 2,079 $ 6,493 $ 7,368 Less: (Gain
Slide 42: Reconciliation of Non-GAAP Financial Measures
42 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 43: Reconciliation of Non-GAAP Financial Measures: Tangible Book Value Per Share
43 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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