It's like U.S. Bancorp for Minnesota's commercial real estate and small business market.

Think of it as a boutique Wells Fargo, specialized in commercial real estate and business lending for Minnesota entrepreneurs.

• Deposit Accounts: Offers various accounts for saving and managing funds, including savings, money market, demand, time, brokered, and certificates of deposit.
• Commercial Loans: Provides financing to businesses for purposes such as accounts receivable, inventory, capital assets, and general business needs.
• Real Estate Loans: Offers a range of loans for construction, land development, 1-4 family mortgages, multifamily properties, and owner/non-owner occupied commercial real estate.
• Consumer Loans: Supplies personal loans and other credit products to individual customers.
• Digital Banking Services: Delivers convenient online, mobile, and direct banking platforms for account management and transactions.

Bridgewater Bancshares (BWB) sells primarily to categories of customers rather than named companies. Based on the company description, its major customer categories are:

• Commercial real estate investors
• Small business entrepreneurs
• High net worth individuals

Jerry Baack, Chairman of the Board and Chief Executive Officer

Jerry Baack is the principal founder of Bridgewater Bancshares and Bridgewater Bank, co-founding them in 2005. He was responsible for all aspects of the Bank's formation, including the initial capital raise, business plan, board and management team structure and recruitment, and regulatory approval. He has served as Chairman of the Board and Chief Executive Officer since the Bank's founding.

Joe Chybowski, President and Chief Financial Officer

Joe Chybowski joined Bridgewater Bank in 2013 as Controller. He was appointed Chief Financial Officer in 2017 and named President in 2024. In his role, he oversees all financial-related activities, including accounting, regulatory reporting, liquidity management, investment strategies, insurance, and capital development. He also contributes to strategic decision-making and corporate governance.

Laura Espeseth, Chief Administrative Officer

Laura Espeseth joined Bridgewater in 2017 and has held various leadership roles within the finance department, including Chief Accounting Officer. She has been instrumental in guiding the Bank through significant milestones such as its initial public offering, acquisitions, and capital raises.

Katie Morrell, Chief Credit Officer

Katie Morrell joined Bridgewater in 2020, serving as Deputy Chief Credit Officer before being promoted to Chief Credit Officer in September 2025. She brings over 18 years of experience in financial services, credit risk management, and strategic leadership, having previously held roles at Bremer Bank and RSM US LLP.

Lisa Salazar, Chief Operating Officer

Lisa Salazar has been with Bridgewater Bank since 2018, where she serves as Chief Operating Officer, overseeing operations, technology, and product initiatives. With nearly 30 years of banking experience, she previously led the Deposit Services and Treasury Management teams as Chief Deposit Officer.

• Credit Risk from Commercial Real Estate and Small Business Lending: Bridgewater Bancshares' primary focus on serving commercial real estate investors and small business entrepreneurs, along with its extensive offering of commercial, construction and land development, and various real estate-backed loans, exposes it significantly to the credit cycles and specific risks inherent in these sectors. Economic downturns, declines in commercial or residential property values, or challenges faced by small businesses could lead to increased loan defaults, higher provisions for loan losses, and a deterioration in asset quality.
• Geographic Concentration Risk: With all of its banking operations concentrated in seven full-service offices located exclusively within specific areas of Minnesota (Bloomington, Greenwood, Minneapolis, St. Louis Park, Orono, and St. Paul), Bridgewater Bancshares is highly susceptible to the economic health and real estate market conditions of this particular region. A localized economic recession, a significant decline in regional employment, or a downturn in the Minnesota real estate market could disproportionately and adversely affect the bank's loan portfolio, deposit base, and overall financial performance.
• Interest Rate Sensitivity: As a financial institution, Bridgewater Bancshares' profitability is inherently linked to interest rate fluctuations. Changes in the general level of interest rates, particularly rapid or significant shifts, can impact the bank's net interest margin—the difference between the interest earned on its loan portfolio and investments, and the interest paid on its deposits and borrowings. An unfavorable movement in interest rates could compress margins, reduce net interest income, and consequently affect the bank's earnings and financial condition.

The emergence of digital-first banks and specialized fintech lenders represents a clear threat. These digital-native competitors leverage technology to offer streamlined and often lower-cost banking products and services, including deposit accounts and various loan types, directly challenging Bridgewater Bancshares' market share among its small business entrepreneurs and high net worth individual client segments for simpler banking needs.

Bridgewater Bancshares (symbol: BWB) operates primarily in Minnesota, and its addressable markets for its main products and services within this region are sized as follows:

• Commercial Real Estate (CRE) Lending: The market size for the Real Estate Loans & Collateralized Debt industry in Minnesota is projected to be approximately $10.2 billion in 2026. This market includes various property types such as multifamily, office, industrial, retail, self-storage, and hospitality. The Minnesota commercial real estate market is supported by a stable local economy.
• Small Business Lending: In 2023, reporting banks issued new loans totaling approximately $3.7 billion to Minnesota businesses with revenues of $1 million or less. In 2022, this figure was $4.2 billion. Small businesses represent 99.5% of all enterprises in Minnesota, totaling over 560,000 businesses.
• Deposits (Savings, Money Market, Demand, Time, Brokered Deposits, Certificates of Deposit): As of June 30, 2024, the total deposits in all banks in Minnesota amounted to approximately $310.9 billion.
• Residential Mortgage Lending (1-4 Family Mortgage Loans): This is a component of the broader Real Estate Loans & Collateralized Debt market in Minnesota, which is valued at approximately $10.2 billion in 2026. The median home sales price in Minnesota was $375,000 in August 2025, with closed sales increasing by 2.4% in 2025 to their highest level since 2022.

Expected Drivers of Future Revenue Growth for Bridgewater Bancshares (BWB)

• High Single-Digit Loan Growth: Bridgewater Bancshares anticipates maintaining high single-digit loan growth in 2026, building on the 11.4% growth achieved in 2025 and 8.9% annualized growth in Q4 2025. This growth is expected to be fueled by strong loan demand and a robust pipeline in its markets. In 2024, the company saw a rebound in loan growth, with balances increasing 7% annualized in the fourth quarter (excluding acquired loans).
• Net Interest Margin (NIM) Expansion: The company is strategically focused on expanding its net interest margin, with a stated goal of achieving a 3% NIM by the end of 2026, an acceleration from its prior target of early 2027. This expansion is primarily driven by declining deposit costs and favorable repricing opportunities for assets. Net interest margin expanded by 12 basis points in Q4 2025, reaching 2.75%, following an 8 basis point expansion in Q4 2024.
• Strong Core Deposit Growth and Market Share Gains: Bridgewater Bancshares emphasizes continued strong core deposit growth, including noninterest-bearing deposits, as a key driver. This focus aims to optimize its funding base, support loan growth, and improve its loan-to-deposit ratio. The company recorded annualized core deposit growth of 8.8% in Q4 2025 and 7.9% for the full year 2025, with a significant increase in noninterest-bearing deposits. Management highlights gaining market share in the Twin Cities and beyond as a fundamental aspect of its growth strategy.
• Expansion of the Affordable Housing Vertical: The company views its affordable housing vertical as a significant growth driver. This segment experienced substantial growth of 29% in 2025 and saw balances increase by $41 million in Q4 2025, indicating continued strategic focus and opportunity for future revenue generation.

Share Repurchases

• In August 2022, Bridgewater Bancshares authorized a new stock repurchase program for up to $25 million of its common stock, which was set to expire on August 16, 2024. This program replaced a previous $40 million authorization.
• During the first half of 2022, the company repurchased 563,455 shares totaling $9.2 million.
• As of December 31, 2025, approximately $13.1 million remained under the existing share repurchase authorization.

Share Issuance

• In August 2021, Bridgewater Bancshares commenced a public offering of depositary shares, each representing a 1/100th ownership interest in a share of its Series A Non-Cumulative Perpetual Preferred Stock. The proceeds were earmarked for general corporate purposes, including supporting organic growth, maintaining capital ratios, and potentially redeeming or repurchasing outstanding indebtedness.
• In February 2026, Bridgewater Bancshares, Inc. filed a Follow-on Equity Offering in the amount of $50 million.

Outbound Investments

• Bridgewater Bancshares' growth has been partially driven by the acquisition of First Minnetonka City Bank in December 2024.

Capital Expenditures

• For the full year 2025, capital expenditures were reported as -$6 million.
• The company plans to continue optimizing its branch network and expanding its market presence.
• Strategic initiatives for 2026 include investments in digital platforms and a focus on AI and affordable housing.