From The Motley Fool · Motley Fool Transcribing · · 3m
Bridgewater Bancshares Q3 2026 Earnings
Bridgewater Bancshares reports 7.2% loan growth and 19.6% core deposit expansion in Q3 2026.
In brief
Bridgewater Bancshares reports 7.2% loan growth and 19.6% core deposit expansion in Q3 2026. Bridgewater Bancshares reported $15.0 million net income and $0.49 diluted earnings per share for Q3 2026 with 7.2% annualized loan growth and 19.6% core deposit expansion. Originally reported by The Motley Fool.
Q3 2026 Financial Results
Bridgewater Bancshares reported net income of $15.0 million, a 7.1% increase from the previous quarter.
Diluted Earnings Per Share
Diluted earnings per share rose to $0.49 from $0.45 in the second quarter of 2026.
Preprovision Net Revenue
Preprovision net revenue grew 15.2% to $21.9 million from $19.0 million in the previous quarter.
Net Interest Margin
Net interest margin expanded two basis points to 3.09% due to loan and investment securities repricing at higher yields.
Efficiency Ratio
Efficiency ratio decreased to 48.8% from 53.0% in the previous quarter as revenue growth outpaced expense growth.
Gross Loans
Gross loans increased 7.2% annually to $4.51 billion from the previous quarter.
Core Deposits
Core deposits grew 19.6% annually to $3.31 billion, reflecting a $165.3 million increase from the second quarter.
Variable Rate Loans
Variable rate loans now represent 26% of the loan portfolio, up from 15% two years ago, totaling $1.2 billion.
Nonperforming Assets
Nonperforming assets decreased to 37 basis points of total assets from 40 basis points in the second quarter.
Net Charge-Offs
Net charge-offs increased to 0.21% of average loans, primarily driven by a $2.4 million charge-off on a $10 million multifamily loan.
Affordable Housing Loans
Affordable housing loans grew 20% year over year to $721 million, representing 16% of the total loan book.
Fixed-Rate Loan Maturities
Fixed-rate loans scheduled to mature over the next 12 months total $697 million at a weighted average yield of 5.70%.
Adjustable-Rate Loan Maturities
Adjustable-rate loans repricing or maturing over the next 12 months total $105 million at a weighted average yield of 4.23%.
Common Equity Tier 1 Ratio
Common equity tier 1 ratio increased 55 basis points year over year to 9.63%.
Tangible Book Value Per Share
Tangible book value per share grew 9.4% year over year to $16.33.
Noninterest Expense
Noninterest expense decreased to $21.3 million from $21.9 million in the second quarter due to lower marketing and consulting costs.
Provision for Credit Losses
Provision for credit losses increased to $2.8 million from $550,000 in the previous quarter to support loan growth and specific reserves.
Brokered Deposits
Brokered deposits decreased $96.4 million from the previous quarter as core funding increased.
Noninterest-Bearing Deposits
Noninterest-bearing deposits increased $62.9 million from June 30, 2026 to $893.8 million.
The headline
Bridgewater Bancshares reported $15.0 million net income and $0.49 diluted earnings per share for Q3 2026 with 7.2% annualized loan growth and 19.6% core deposit expansion.
