Bridgewater Bancshares, Inc.

Bridgewater did not provide revenue or EPS figures on the call, but management said return on average assets topped 1% for the quarter, net interest margin was 3.07%, and net interest income grew at a 21% annualized pace. Non-interest expense increased 13% while total revenue increased at a 20% annualized pace, producing positive operating leverage. CET1 rose 8 basis points to 9.61%, tangible book value increased 17% annualized to $16.61, net charge-offs were 4 basis points, and non-performing assets were 40 basis points. Looking ahead, management expects mid- to high-single-digit loan growth in the back half of 2026, additional but slower net interest margin expansion, and expenses to be relatively flat at second-quarter levels through year-end.

Jerry Baack framed the quarter as another strong period of market share gains, profitability improvement, and capital building. He emphasized that Bridgewater is growing the balance sheet profitably, with tangible book value, ROA, and net interest margin all moving in the right direction. His tone was confident and upbeat, especially around the company’s talent additions, stronger foothold in the Twin Cities, and continued progress in affordable housing.

Joe Chybowski highlighted that profitability improvement was driven by net interest margin expansion and balance sheet growth, with NII up 21% annualized and margin up 8 basis points to 3.07%. He said deposit costs stabilized in the quarter and that further margin gains should come more from earning assets and loan repricing than from funding costs. He also said expenses were front-loaded because of opportunistic hiring and merit increases, and expects third- and fourth-quarter expenses to be relatively flat versus the second quarter while CET1 remained strong at 9.61%.

Analysts pressed on elevated payoffs, margin drivers, deposit pricing, and the pace of future loan growth. Management said payoffs largely reflect the natural life cycle of commercial real estate transactions and refinancing/sales rather than anything concerning, and that the recent pace should be a reasonable model for the back half. On deposits and loans, they said competition remains fierce, spreads on some deals are too tight to chase, and loan growth will depend on deposit momentum, competition, and payoffs, with a mid- to high-single-digit pace still the target for the rest of 2026.