Bridgewater earnings of $0.49 a share beat estimates as loans and deposits grow
Key Facts
Bridgewater Bancshares reported earnings per share of $0.49 in the third quarter of 2026, beating analysts' estimates as net income rose and lending and deposits grew. According to Investing.com, estimates called for earnings of $0.47 a share, putting the reported beat at $0.02. Financial results filed by the company with the U.S. Securities and Exchange Commission showed net income of $15.0 million for the quarter. That compared with net income of $14.0 million in the previous quarter, a quarterly improvement that coincided with a wider interest margin. Investing.com reported revenue of $43.23 million, against analysts' average estimate of $43.2 million for the same period.
In its banking operations, net interest income reached $40.7 million in the third quarter, according to the earnings disclosure, alongside growth in lending and investment portfolios. Net interest margin reached 3.09% on a fully tax-equivalent basis, the basis the company used to present the metric in its results for the period. Bridgewater attributed the margin expansion primarily to growth in its loan and investment securities portfolios, along with the repricing of assets in those portfolios. Explaining the expansion, the company said repricing came "at higher yields," linking the margin improvement to returns on loans and investment securities. Management's explanation thus cited growth in both portfolio size and yields as the main drivers of the wider interest margin in the reported quarter.
On the balance sheet, total loans increased by $80.4 million from the previous quarter, according to the company's disclosure, as the lending portfolio expanded during the third quarter. Total deposits rose by $126.8 million quarter on quarter, exceeding the increase in loans over the same period in dollar terms. Core deposits rose by $165.3 million from the previous quarter, according to figures Bridgewater released in its financial results. Growth in these deposits exceeded both the increase in total deposits and the quarterly increase in the total loan portfolio. The expansion in lending and deposits came alongside growth in loan and investment securities portfolios, which the company cited in its explanation of the wider net interest margin.
Among operating indicators, the efficiency ratio fell to 48.8% in the third quarter from 53.0% in the previous quarter, according to the earnings statement. The company presents the efficiency ratio as a non-GAAP measure, and its decline formed part of the operating improvement accompanying higher net income in the reported period. On credit risk, the provision for credit losses on loans and leases was $2.8 million, according to the disclosure filed with the U.S. Securities and Exchange Commission. Net loan charge-offs were an annualized 0.21% of average loans during the reported quarter. Provision expenses and charge-offs coincided with continued lending expansion, while the group recorded quarterly improvements in operating efficiency and net income.
Bridgewater Bank provides banking services to businesses, entrepreneurs and individuals, according to the description in the group's earnings statement. Group total assets stood at $5.6 billion on September 30, 2026, the end of the quarter covered by the reported results. On capital, the common equity tier 1 ratio to risk-weighted assets was 9.63% at the end of the same period, according to the official disclosure. Tangible book value per share stood at $16.33 at quarter-end, among the metrics Bridgewater presented with its earnings and balance sheet results. The company classifies tangible book value per share as a non-GAAP measure, alongside the efficiency ratio it uses to present its operating performance.
The company scheduled its third-quarter earnings call for October 21, 2026, according to the announcement in its financial disclosure. The call is scheduled to begin at 08:00 a.m. U.S. Central Time to discuss the group's reported results for the period. In a subsequent corporate action, Bridgewater announced dividends on its Series "A" preferred stock in its regulatory disclosure, with a shareholder record date in November. Shareholders of record at the close of business on November 13, 2026, are eligible for the dividends, under the terms set out in the disclosure. The group set December 1, 2026, as the payment date for the preferred stock dividends to eligible shareholders, following the announced record date.