The sharp improvement in efficiency ratio and core deposit growth signal operational momentum, but the spike in net charge-offs and decline in tangible book value from AOCI pressure warrant monitoring. The earnings call on Oct 21 may provide color on credit normalization and NIM trajectory given the Fed's rate hike cycle.
Price Chart
Executive Summary
Bridgewater Bancshares reported Q3 2026 diluted EPS of $0.49, a 3.2% beat vs. the $0.47 consensus estimate, with net income of $15.0M. Net interest income grew 21.5% annualized QoQ to $40.7M, the efficiency ratio improved to 48.8% (first time below 50% since Q1 2023), and core deposits surged 19.6% annualized. However, annualized net charge-offs rose to 0.21% from 0.04% QoQ due to one mixed-use multifamily loan, and tangible book value per share declined 6.7% annualized from Q2 2026 due to higher unrealized losses on securities.
Key Financial Metrics
Key Facts
- Q3 2026 diluted EPS of $0.49 beat consensus of $0.47 by 4.3%
- Net interest income of $40.7M, up 21.5% annualized QoQ and 19.3% YoY
- Efficiency ratio improved to 48.8% from 53.0% in Q2 2026, the best since Q1 2023
- Core deposits grew $165.3M or 19.6% annualized QoQ; total deposits up $126.8M
- Gross loans grew $80.4M or 7.2% annualized QoQ
- Annualized net charge-offs rose to 0.21% from 0.04% QoQ, related to one mixed-use multifamily loan
- Tangible book value per share fell 6.7% annualized to $16.33 due to higher unrealized securities losses
- CET1 ratio improved to 9.63% from 9.61% QoQ
- No shares repurchased in Q3 2026; $12.4M remaining under buyback authorization
Financial Impact
Net income of $15.0M vs $14.0M QoQ; PPNR grew 36% YoY to $21.9M; NIM expanded 2 bps QoQ to 3.09%
Risk Factors
- Net charge-offs rose to 0.21% annualized from 0.04% QoQ, driven by one mixed-use multifamily loan; further credit deterioration could pressure earnings
- Tangible book value per share declined 6.7% annualized due to higher unrealized losses in the securities portfolio, which could accelerate if rates rise further
- Nonperforming assets at $20.9M remain elevated vs $10.0M a year ago, though down from $21.6M QoQ
- Guidance assumes three additional rate hikes through H1 2027; a different rate path could pressure NIM
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-117421 |
| Document: bwb-ex99d2.htm | 0001104659-26-117421 |
| Document: bwb-20261020x8k.htm | 0001104659-26-117421 |
| Document: 0001104659-26-117421-index-headers.html | 0001104659-26-117421 |
| Document: 0001104659-26-117421-index.html | 0001104659-26-117421 |
| Document: 0001104659-26-117421.txt | 0001104659-26-117421 |
| 8-K Data (Synthetic) | 0001104659-26-117421 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 20, 2026 5d ago | 8-K | $20.13 $20.67 | ▲ +2.68% | ▲ +3.86% | $20.60 (+2.33%) |
Aug 25, 2026 8w ago | Insider Cluster | $21.16 $21.32 | ▼ −0.76% | ▼ −0.10% | $20.60 (+2.65%) |
Aug 14, 2026 10w ago | Insider Cluster | $22.33 $22.35 | ▲ +0.09% | ▲ +0.77% | $20.60 (−7.75%) |
Aug 10, 2026 10w ago | Insider Cluster | $21.71 $22.01 | ▲ +1.38% | ▲ +1.13% | $20.60 (−5.11%) |
Aug 5, 2026 11w ago | Insider Cluster | $21.24 $21.64 | ▼ −1.88% | ▼ −1.27% | $20.60 (+3.01%) |
Aug 3, 2026 11w ago | Insider Cluster | $20.96 $21.07 | ▲ +0.52% | ▲ +0.72% | $20.60 (−1.72%) |
Jun 8, 2026 19w ago | Insider Cluster | $19.58 $19.63 | ▲ +0.26% | ▲ +1.83% | $20.60 (+5.21%) |
May 22, 2026 22w ago | Insider Cluster | $19.00 $18.82 | ▼ −0.95% | ▼ −0.96% | $20.60 (+8.42%) |
May 7, 2026 24w ago | Insider Cluster | $18.51 $18.52 | ▲ +0.05% | ▼ −0.78% | $20.60 (+11.29%) |
May 7, 2026 24w ago | Insider Cluster | $18.51 $18.52 | ▲ +0.05% | ▼ −0.78% | $20.60 (+11.29%) |
US Market Status
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