Bridgewater Bancshares Q4 2025 Earnings Call Highlights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: seekingalpha
- Loan and Deposit Growth: Bridgewater Bancshares reported a 9% year-over-year growth in both loans and core deposits for Q4 2025, indicating strong market demand and customer trust, which further solidifies its market position in the Minneapolis-St. Paul area.
- Net Interest Margin Expansion: The net interest margin increased by 12 basis points to 2.75% in Q4 due to lower deposit costs, with expectations to reach 3% by the end of 2026, significantly enhancing the bank's profitability and competitive edge.
- Non-Interest Income Rebound: Non-interest income rose 32% year-over-year in Q4, including $651,000 in swap fee income, demonstrating positive progress in diversifying revenue sources and enhancing financial stability.
- Expense Control and Risk Management: Management emphasized that expense growth will align with asset growth, expected to revert to historical patterns, reflecting ongoing focus on risk management and operational efficiency to ensure sustainable growth in the future.
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Analyst Views on BWB
Wall Street analysts forecast BWB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BWB is 21.00 USD with a low forecast of 21.00 USD and a high forecast of 21.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 18.770
Low
21.00
Averages
21.00
High
21.00
Current: 18.770
Low
21.00
Averages
21.00
High
21.00
About BWB
Bridgewater Bancshares, Inc. is a financial holding company with one wholly owned subsidiary, Bridgewater Bank (the Bank). The Bank focuses primarily on commercial lending, consisting of loans secured by nonfarm, nonresidential properties, loans secured by multifamily residential properties, nonowner occupied single family residential properties, construction loans, land development loans and commercial and industrial loans. The Bank offers loan and deposit products primarily for commercial clients. The Bank also offers consumers traditional retail deposit products through its branch network, along with online, mobile, and direct banking channels. The Bank has developed a suite of deposit products targeted at commercial clients, including a variety of remote deposit and cash management products, along with commercial transaction accounts. The Bank has nine full-service offices located in Bloomington, Greenwood, Minneapolis (two), St. Louis Park, Orono, and St. Paul, Minnesota.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Bridgewater Bancshares Q4 2025 Earnings Call Highlights
- Loan and Deposit Growth: Bridgewater Bancshares reported a 9% year-over-year growth in both loans and core deposits for Q4 2025, indicating strong market demand and customer trust, which further solidifies its market position in the Minneapolis-St. Paul area.
- Net Interest Margin Expansion: The net interest margin increased by 12 basis points to 2.75% in Q4 due to lower deposit costs, with expectations to reach 3% by the end of 2026, significantly enhancing the bank's profitability and competitive edge.
- Non-Interest Income Rebound: Non-interest income rose 32% year-over-year in Q4, including $651,000 in swap fee income, demonstrating positive progress in diversifying revenue sources and enhancing financial stability.
- Expense Control and Risk Management: Management emphasized that expense growth will align with asset growth, expected to revert to historical patterns, reflecting ongoing focus on risk management and operational efficiency to ensure sustainable growth in the future.
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Bridgewater Bancshares Q4 Earnings Exceed Expectations
- Earnings Beat: Bridgewater Bancshares reported a Q4 non-GAAP EPS of $0.44, exceeding market expectations of $0.41, indicating a sustained improvement in profitability.
- Significant Revenue Growth: The company achieved Q4 revenue of $38.8 million, a 31.5% year-over-year increase, which not only surpassed expectations by $2.7 million but also reflects strong business expansion and market demand.
- Market Reaction Discrepancy: Despite the strong performance, the management expressed disagreement with the market's decision to push shares higher, suggesting a cautious outlook on future market performance.
- Historical Performance Data: The company’s historical financial data further supports its ongoing growth trend, providing investors with a more comprehensive performance background.
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