Bridgewater Bancshares is like **PNC for Minnesota businesses**.

Bridgewater Bancshares is like **KeyBank for commercial real estate in the Twin Cities**.

Bridgewater Bancshares is like **a boutique U.S. Bank**, focused on businesses and high-net-worth clients.

• Commercial & Industrial Lending: Providing loans to businesses for operational expenses, equipment purchases, and other growth initiatives.
• Commercial Real Estate Lending: Offering financing for the acquisition, construction, development, and refinancing of commercial properties.
• Deposit Accounts: Managing a range of checking, savings, money market, and certificate of deposit accounts for both businesses and individuals.
• Treasury Management Services: Delivering solutions to businesses for efficient cash flow management, payment processing, and financial operations.

Bridgewater Bancshares (symbol: BWB) is a bank holding company for Bridgewater Bank. As a financial institution, it serves a diverse customer base consisting of both businesses and individuals. Unlike companies that sell specific products to a few large corporate buyers, banks serve numerous clients across various segments. Therefore, its "major customers" are best understood as categories of clients rather than specific named companies.

The primary customer categories for Bridgewater Bancshares include:

• Commercial Real Estate (CRE) Investors and Developers: This category includes businesses and individuals who seek financing for the acquisition, development, and refinancing of income-producing commercial properties, such as multi-family, office, retail, and industrial spaces. This is a significant focus for Bridgewater Bank.
• Small to Medium-sized Businesses (SMBs) and Commercial & Industrial (C&I) Clients: This segment comprises local and regional businesses across various industries that require commercial loans, lines of credit, equipment financing, and treasury management services to support their operations and growth.
• High-Net-Worth Individuals and Families: While Bridgewater Bank provides services to general retail clients, it often emphasizes attracting more affluent individuals and families for deposits, specialized lending solutions (e.g., jumbo mortgages), and private banking services, leveraging relationships often developed through its commercial banking activities.

Fiserv, Inc. (FISV)

Jerry Baack, Chairman of the Board and Chief Executive Officer

Jerry Baack is the principal founder of Bridgewater Bancshares, Inc. and Bridgewater Bank, both established in 2005. He was responsible for all aspects of the bank's formation, including the initial capital raise, business plan development, and the recruitment of the board and management team. With a career spanning over 30 years in banking and prior experience as a regulator, he previously served as Executive Vice President, Chief Lending Officer, and Director at Commerce Bank, and held various positions at Hampton Bank, Beacon Bank, and the Federal Deposit Insurance Corporation. He holds an undergraduate degree from Minnesota State University-Mankato and is an alumnus of the Graduate School of Banking at Colorado, Boulder.

Joe Chybowski, President and Chief Financial Officer

Joe Chybowski joined Bridgewater Bank in 2013 and currently serves as Chief Financial Officer, having been named President in 2024. In his role, he is responsible for directing and managing all financial-related activities, including accounting, regulatory reporting, liquidity management, investment strategies, insurance, and capital development. He was recognized as a '40 Under 40' honoree by the Minneapolis/St. Paul Business Journal in 2024 and as one of the Notable Chief Financial Officers by Twin Cities Business in 2022.

Mary Jayne Crocker, Executive Vice President and Chief Strategy Officer

Mary Jayne Crocker has been with Bridgewater Bank since its inception in 2005. She has held various roles, including Chief Operating Officer from 2014 to 2024, before being appointed Executive Vice President and Chief Strategy Officer in 2024. She has over 30 years of experience in the financial services industry and was instrumental in building the Bridgewater Bank brand, creating the branch network, and developing its culture.

Nick Place, Chief Banking Officer

Nick Place joined Bridgewater Bank in 2007 and serves as Chief Banking Officer. In this role, he oversees all aspects of client growth and relationship management, including lending, treasury management, deposit services, and marketing. He previously served as the bank's Chief Lending Officer, leading the lending team and managing the loan portfolio. Nick also serves on the boards of Rethos Places Reimagined and Minnesota Housing Partnership.

Katie Morrell, Chief Credit Officer

Katie Morrell joined Bridgewater Bank in 2020 and was appointed Chief Credit Officer after previously serving as Deputy Chief Credit Officer. She is responsible for overseeing all aspects of the bank's credit risk management and chairs the loan and credit risk management committees. Katie brings over 18 years of experience in financial services, credit risk management, and strategic leadership.

The key risks to Bridgewater Bancshares' (BWB) business are primarily concentrated in its loan portfolio and sensitivity to interest rate fluctuations.

1. Concentration in Commercial Real Estate and Housing Market Exposure: Bridgewater Bancshares has a notable vulnerability due to its substantial credit concentration in commercial real estate (CRE) loans and its exposure to the broader housing market. Concerns include significant commercial real estate loan reserves and the potential impact of a softening housing market. While its asset quality has generally been strong, a slowdown in property sales or weakness in local commercial real estate could disproportionately affect the bank compared to more diversified institutions.
2. Reliance on Federal Reserve Rate Cuts and Net Interest Margin (NIM) Compression: The company's profitability and ability to achieve long-term growth targets are closely tied to the Federal Reserve's interest rate policy. There is a risk that if the Fed delays anticipated rate reductions or if inflation persists, it could amplify the bank's vulnerabilities. Furthermore, the bank faces the risk of net interest margin (NIM) compression if deposit costs remain high while loan yields decline.
3. Concentration Risk and High Loan-to-Deposit Ratio: Bridgewater Bancshares faces concentration risk with its top 10 borrowers accounting for approximately 18% of its loans and its top 10 depositors representing about 17% of its deposits. Additionally, a high loan-to-deposit ratio of 103% has been identified as a concern, as it could limit the bank's reserves in the event of defaults or delinquencies, impacting its liquidity position.

• The proliferation and increasing market share of digital-only challenger banks (neobanks) which offer competitive interest rates, lower fees, and superior mobile-first user experiences, directly threatening Bridgewater Bancshares' ability to attract and retain retail and small business deposits and checking accounts.
• The growth of specialized online lenders and fintech platforms that disintermediate traditional banks in key lending segments (e.g., mortgages, personal loans, small business loans) by offering streamlined application processes, faster approvals, and potentially more competitive rates, thereby eroding Bridgewater Bancshares' loan origination volume and interest income.

Bridgewater Bancshares (BWB) operates as a full-service commercial bank. Its main products and services primarily cater to businesses, real estate investors, and individuals within the United States, particularly in the Twin Cities metropolitan area of Minnesota.

The addressable markets for its main products and services are as follows:

• Commercial Banking: The US Commercial Banking Market is expected to reach approximately USD 732.5 billion in 2025. This market is for the United States.
• Residential Mortgages: The outstanding balances for the residential mortgage market in the United States of America attained a value of approximately USD 12.85 trillion in 2023. This market is for the United States.
• Commercial Real Estate Lending: Commercial real estate debt in the U.S. totaled approximately USD 5.62 trillion in 2022. This market is for the United States.
• Personal (Retail) Banking: The United States retail banking market is valued at approximately USD 0.87 trillion in 2025 and is forecasted to reach USD 1.08 trillion by 2030. This market is for the United States.
• Deposit Services: Total bank deposits (excluding large time deposits) in the United States stood at approximately USD 15 trillion as of May 2025. This market is for the United States.

Bridgewater Bancshares (symbol: BWB) is anticipated to drive future revenue growth over the next 2-3 years through several key strategies:

1. Strong Loan Growth, Including Affordable Housing: Bridgewater Bancshares expects continued robust loan growth, projecting mid-to-high single-digit increases. A significant contributor to this growth is the expansion of its national affordable housing vertical, an area where the bank has developed specialized expertise. In the third quarter of 2025, loan balances increased by 6.6% annualized, and the bank's multifamily portfolio, including $611 million in affordable housing, is a key asset. Management continues to see growth across multiple asset classes.
2. Net Interest Margin (NIM) Expansion: The company anticipates meaningful net interest margin expansion in the coming quarters, targeting a 3% margin by early 2027. This expansion is expected to be driven by favorable interest rate cuts and the repricing of asset yields. In Q3 2025, BWB saw a 1 basis point NIM expansion to 2.63% and an increase in net interest income.
3. Core Deposit Growth: Consistent growth in core deposits is crucial for funding loan growth and improving profitability. Bridgewater Bancshares has demonstrated strong core deposit momentum, with core deposits growing 11.5% annualized in Q3 2025 and 7.4% annualized year-to-date. This growth provides the ability to expand the bank in a more profitable manner.
4. Strategic Market Share Expansion and M&A Opportunities in the Twin Cities: Bridgewater Bancshares continues to benefit from merger and acquisition disruptions in the Twin Cities market. This environment provides significant opportunities for both deposit and loan growth, aiding in market share expansion and contributing to the bank's trajectory toward becoming a $10 billion bank by 2030. The company's focus is on driving net interest income growth, which will come from both margin expansion and a stronger loan growth outlook.