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Bridgewater Bancshares
(NASDAQ:BWB)
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Rating:66Neutral
Price Target:
$22.50
▲(5.53% Upside)
Action:Reiterated
Date:10/21/26
BWB’s score is driven primarily by a generally healthy financial foundation (improving leverage and solid returns) but held back by a meaningful TTM revenue decline and margin compression. Valuation is a positive at ~10x earnings, while technical indicators are mostly neutral. Management commentary and recent company updates are constructive, but higher provision expectations and the two larger nonperforming relationships remain notable risks.
Positive Factors
Core deposit growth and funding mix
Strong core deposit growth deepens customer relationships and provides a more stable funding base for commercial lending. The shift toward non-interest-bearing deposits and away from higher-cost brokered funding can support margins, liquidity resilience, and scalable growth over the coming quarters.
Negative Factors
Revenue decline and operating margin compression
The decline in trailing revenue and sharply lower operating margin indicate that the core earnings engine has weakened relative to the prior year. Persistent pressure would reduce internal capital generation and could limit the bank’s ability to fund growth while maintaining attractive returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Core deposit growth and funding mix
Strong core deposit growth deepens customer relationships and provides a more stable funding base for commercial lending. The shift toward non-interest-bearing deposits and away from higher-cost brokered funding can support margins, liquidity resilience, and scalable growth over the coming quarters.
Read all positive factors
Bridgewater Bancshares (BWB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$574.69M
Dividend YieldN/A
Average Volume (3M)98.51K
Price to Earnings (P/E)10.0
Beta (1Y)0.96
Revenue Growth10.34%
EPS Growth49.30%
CountryUS
Employees355
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.90
Shares Outstanding27,883,823
10 Day Avg. Volume89,730
30 Day Avg. Volume98,514
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)0.93
Price to Sales (P/S)1.65
P/FCF Ratio21.85
Enterprise Value/Market Cap1.55
Enterprise Value/Revenue3.49
Enterprise Value/Gross Profit8.24
Enterprise Value/Ebitda23.61
Forecast
1Y Price Target
$24.50Price Target Upside14.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.84
Revenue Forecast (FY)$170.90M
Bridgewater Bancshares Business Overview & Revenue Model
Company Description
Bridgewater Bancshares, Inc. functions as the holding company for Bridgewater Bank, which delivers a comprehensive array of banking products and services. Its core clientele includes commercial real estate investors, small business entrepreneurs, ...
How the Company Makes Money
Bridgewater Bancshares makes money primarily through its banking subsidiary by earning interest income and fee-based (noninterest) income.
1) Net interest income (core earnings driver)
- Commercial and real estate lending: The bank originates and...
Bridgewater Bancshares Earnings Call Summary
Earnings Call Date:Oct 20, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
The call was strongly positive, with record revenue and pre-provision net revenue, robust core deposit and loan growth, improving efficiency, expanding net interest margin, strong asset-quality indicators, and increased capital. Management also expressed confidence in its higher-rate positioning, affordable housing strategy, talent base, and AI initiatives. The principal challenges were higher-rate pressure on loan originations and deposit costs, lighter swap fees, elevated multifamily payoffs, two larger nonperforming relationships, and expectations for higher provision expense in the fourth quarter. Overall, the highlights significantly outweighed the lowlights.Positive Updates
Strong Third-Quarter Growth and Profitability
Management described the third quarter as an incredibly strong quarter, with growth and profitability both highlighted as key objectives. The company delivered record total revenue and record pre-provision net revenue, while continuing to focus on balance-sheet growth that prioritizes profitability.
Negative Updates
Higher Rates Could Slow Loan Origination
Management said higher interest rates are causing fewer deals to pencil out, and new origination activity could slow somewhat. Near-term loan growth is expected to remain in the mid-single-digit range as the company navigates the higher-rate environment and maintains pricing discipline.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Growth and Profitability
Management described the third quarter as an incredibly strong quarter, with growth and profitability both highlighted as key objectives. The company delivered record total revenue and record pre-provision net revenue, while continuing to focus on balance-sheet growth that prioritizes profitability.
Read all positive updates
Company Guidance
Bridgewater expects near-term loan growth in the mid-single-digit range, with core deposits continuing to be a governor and interest rates affecting originations and payoffs; it expects the net interest margin to hold relatively stable at current levels over the near term, even assuming an additional rate hike in December and two more in early 2027. Fourth-quarter non-interest expense is expected to be similar to second quarter levels, while provision expense is expected to be a bit higher than in the third quarter and slightly elevated as the company works through its two larger nonperforming assets and supports expected loan growth. The company expects to continue managing expenses effectively while still investing in the business, with a focus on driving further positive operating leverage, and is confident it will continue to see positive operating leverage as it heads into 2027.Bridgewater Bancshares Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
71
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 255.29M | 291.63M | 251.44M | 226.95M | 169.34M | 134.19M |
| Gross Profit | 107.99M | 137.62M | 104.22M | 109.94M | 127.64M | 109.67M |
| EBITDA | 37.69M | 65.43M | 45.74M | 55.66M | 74.96M | 64.13M |
| Net Income | 56.35M | 46.09M | 32.83M | 39.96M | 53.39M | 45.69M |
Balance Sheet | ||||||
| Total Assets | 5.39B | 5.41B | 5.07B | 4.61B | 4.35B | 3.48B |
| Cash, Cash Equivalents and Short-Term Investments | 775.22M | 449.71M | 619.83M | 732.67M | 636.84M | 584.71M |
| Total Debt | 434.88M | 508.18M | 452.92M | 412.54M | 476.65M | 134.74M |
| Total Liabilities | 4.84B | 4.89B | 4.61B | 4.19B | 3.95B | 3.10B |
| Stockholders Equity | 547.91M | 517.10M | 457.94M | 425.51M | 394.06M | 379.27M |
Cash Flow | ||||||
| Free Cash Flow | 38.16M | 21.96M | 42.30M | 27.05M | 83.37M | 53.46M |
| Operating Cash Flow | 42.30M | 27.81M | 46.38M | 30.02M | 85.00M | 54.24M |
| Investing Cash Flow | -104.02M | -417.47M | -95.24M | -209.18M | -938.24M | -571.42M |
| Financing Cash Flow | 14.03M | 283.40M | 150.06M | 220.69M | 796.81M | 499.99M |
Bridgewater Bancshares Technical Analysis
Negative
21.32
Price Trends
21.01
Negative
20.83
Negative
19.63
Positive
Market Momentum
-0.16
Negative
42.23
Neutral
43.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWB, the sentiment is Negative. The current price of 21.32 is above the 20-day moving average (MA) of 20.41, above the 50-day MA of 21.01, and above the 200-day MA of 19.63, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 42.23 is Neutral, neither overbought nor oversold. The STOCH value of 43.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BWB.
Bridgewater Bancshares Risk Analysis
Bridgewater Bancshares disclosed 52 risk factors in its most recent earnings report. Bridgewater Bancshares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bridgewater Bancshares Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $594.15M | 10.69 | 14.75% | 1.85% | 6.56% | 16.72% | |
75 Outperform | $549.83M | 13.27 | 15.74% | 1.92% | -1.46% | -5.48% | |
71 Outperform | $527.65M | 9.38 | 16.36% | 2.75% | 2.77% | -11.91% | |
71 Outperform | $566.00M | 9.20 | 16.83% | 1.13% | 9.90% | 14.13% | |
69 Neutral | $568.97M | 12.14 | 10.39% | ― | 8.99% | 52.74% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $574.69M | 10.01 | 11.20% | ― | 10.34% | 49.30% |
* Financial Sector Average
BWB
Bridgewater Bancshares
20.13
3.28
19.47%
FBIZ
First Business Financial
70.90
22.25
45.74%
NRIM
Northrim Bancorp
23.65
2.77
13.24%
SFST
Southern First Bancshares
60.07
18.09
43.09%
UNTY
Unity Bancorp
56.58
9.58
20.39%
BSVN
Bank7
57.72
15.92
38.09%
Bridgewater Bancshares Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Bridgewater Bancshares Reports Strong Third-Quarter 2026 Results
Positive
Oct 20, 2026
Bridgewater Bancshares reported net income of $15.0 million for the third quarter of 2026, up from $14.0 million in the prior quarter and $11.6 million a year earlier, with diluted EPS rising to $0.49. The bank also declared a quarterly cash divid...
Business Operations and StrategyStock Buyback
Bridgewater Bancshares Extends Stock Repurchase Program Timeline
Positive
Aug 26, 2026
On August 25, 2026, Bridgewater Bancshares’ board extended the expiration date of its 2022 Stock Repurchase Program by one year, pushing it from August 26, 2026 to August 25, 2027. As of that date, $12.4 million remained authorized under the...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Bridgewater Bancshares Updates Investors With New Presentation
Positive
Aug 12, 2026
Bridgewater Bancshares, Inc., a commercially focused community bank based in St. Louis Park, Minnesota, operates a branch-light model in the Twin Cities and offers a range of commercial real estate, multifamily, construction, affordable housing, b...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Bridgewater Bancshares Posts Solid Second-Quarter 2026 Results
Positive
Jul 21, 2026
On July 21, 2026, Bridgewater Bancshares reported second-quarter 2026 net income of $14.0 million, or $0.45 per diluted share, down from the prior quarter but above the year-ago period, as net interest income rose 21% annualized and net interest m...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.