Bridgewater Bancshares, Inc. (BWB): History, Ownership, Mission, How It Works & Makes Money

Have you really looked closely at Bridgewater Bancshares, Inc. (BWB), the Minnesota-based bank holding company carving out a serious niche in the Twin Cities' competitive financial landscape?

This regional player is not just another bank; it's an entrepreneurial-focused lender that delivered $11.6 million in net income in the third quarter of 2025, supported by a strong 20.0% annualized increase in tangible book value per share to $14.93 by the end of September.

With institutional investors like BlackRock, Inc. holding a significant stake-around 5.77% of shares-and a full-year 2025 revenue estimate of $143.03 million, Bridgewater Bancshares is defintely executing a high-growth strategy, but what specific history, ownership structure, and core mission drive this performance, and how exactly does it make money?

Bridgewater Bancshares, Inc. (BWB) History

Bridgewater Bancshares, Inc. (BWB) was founded on a simple, relationship-first principle: serving the Minneapolis/St. Paul area's real estate investors and entrepreneurs who felt overlooked by larger financial institutions. This focus on commercial real estate and a high-touch service model has driven its growth from a de novo bank into a holding company with over $4.21 billion in gross loans by the third quarter of 2025.

Bridgewater Bancshares, Inc.'s Founding Timeline

Year established

2005

Original location

Bloomington, Minnesota, USA

Founding team members

The company was founded by a group of experienced local bankers and investors, led by Chairman, President, and CEO Jerry Baack. Other key founding members include Jeff Shellberg, who serves as Executive Vice President and Chief Credit Officer, and Thomas Trutna, a long-time director.

Initial capital/funding

The bank launched after raising initial capital from local investors to establish a strong capital base. The later 2018 Initial Public Offering (IPO) was a major funding event, raising approximately $58.7 million to fuel further growth.

Bridgewater Bancshares, Inc.'s Evolution Milestones

Bridgewater Bancshares, Inc.'s Transformative Moments

The company's history is defined by a few defintely transformative decisions that cemented its position as a specialized commercial bank. You can see the impact of these moments in the latest financial results, like the third quarter 2025 net income of $11.6 million.

• The Commercial Real Estate Focus: From day one, the decision to specialize in commercial real estate (CRE) and multifamily lending, rather than broad-based consumer banking, was the biggest differentiator. This niche expertise allowed them to grow total assets toward the $5 billion mark by late 2024.
• The 2018 IPO: Going public provided the capital needed to scale operations without sacrificing the relationship-banking model. This capital infusion was key to maintaining a competitive edge and funding the loan growth that pushed total gross loans to $4.21 billion as of September 30, 2025.
• The First Minnetonka City Bank Acquisition: Completing this acquisition in late 2024, followed by the successful system conversion in Q3 2025, was a major leap. It shows a willingness to use strategic mergers and acquisitions (M&A) to accelerate market share gains, especially when combined with a low nonperforming asset ratio of just 0.19% at the end of Q3 2025.

If you want to understand who is betting on this strategy, read Exploring Bridgewater Bancshares, Inc. (BWB) Investor Profile: Who's Buying and Why?

Bridgewater Bancshares, Inc. (BWB) Ownership Structure

Bridgewater Bancshares, Inc. (BWB) is primarily controlled by a mix of institutional investors and company insiders, a common structure for regional banks, with institutional funds holding the majority stake.

This governance model, where large financial institutions and executives hold significant sway, means strategic decisions are often aligned with long-term capital preservation and growth, but you should also watch for insider selling activity, like the recent sale of 25,000 shares by CEO Jerry J. Baack in November 2025, valued at approximately $426,273.

Given Company's Current Status

Bridgewater Bancshares, Inc. is a publicly traded company, meaning its shares are readily available to the general public and it must adhere to strict regulatory reporting requirements, which ensures transparency for investors.

The company's common stock trades on the Nasdaq Global Select Market under the ticker symbol BWB, a designation reserved for companies meeting the highest listing standards for financial and liquidity requirements. As of the third quarter of 2025, the company reported total assets of approximately $5.3 billion.

The bank's market capitalization was approximately $462 million in November 2025, trading at a price-to-earnings (P/E) ratio of 12.68. Honest look: the stock has gained an impressive 24.28% year-to-date in 2025, still analysts see potential upside to the $20-$21 range.

Given Company's Ownership Breakdown

The ownership structure for Bridgewater Bancshares, Inc. (BWB) as of the 2025 fiscal year shows a clear concentration among institutional holders, who collectively own more than half of the outstanding shares.

Here's the quick math on who owns the company and how that power is distributed:

The high institutional ownership, over 53%, defintely points to a degree of stability, but it also means a coordinated sell-off by a few large funds could drive significant price volatility. You should check out Breaking Down Bridgewater Bancshares, Inc. (BWB) Financial Health: Key Insights for Investors for a deeper dive.

Given Company's Leadership

The strategic direction of Bridgewater Bancshares, Inc. is guided by a seasoned Strategic Leadership Team, with recent transitions effective in late 2025 designed to support continued growth and succession planning.

The core executive team steering the organization as of November 2025 includes:

• Jerry J. Baack: Chairman and Chief Executive Officer (CEO).
• Joe Chybowski: President and Chief Financial Officer (CFO).
• Katie Morrell: Chief Credit Officer (promoted effective September 15, 2025).
• Jessica Stejskal: Chief Experience Officer (CXO), a newly created role to unify the client experience, effective September 15, 2025.
• Laura Espeseth: Chief Administrative Officer (CAO), transitioning from Chief Accounting Officer, effective September 15, 2025.
• Nick Place: Chief Banking Officer, overseeing client growth and relationship management.
• Mary Jayne Crocker: Chief Strategy Officer (CSO), who is set to retire in February 2026 but remains in her role for now.

This leadership structure reflects a focus on credit quality (new CCO), client engagement (new CXO), and administrative efficiency (new CAO) as the bank manages its nearly $5.3 billion in total assets. The executive team is clearly focused on the next phase of growth.

Bridgewater Bancshares, Inc. (BWB) Mission and Values

Bridgewater Bancshares, Inc. operates on a distinct, relationship-based model, focusing its entire cultural and strategic DNA on serving a specific market niche: successful entrepreneurs and real estate investors in the Twin Cities.

This commitment goes beyond simple transactions; it's about providing responsive support and simple solutions that help drive their clients' growth, a focus that has helped the bank grow its total assets to roughly $5.4 billion as of September 30, 2025.

Bridgewater Bancshares, Inc.'s Core Purpose

The company's core purpose is to be a premier, full-service bank that meets the unique financial requirements of its specialized clientele. They don't try to be everything to everyone, but rather the defintely best partner for their chosen market.

This niche focus allows Bridgewater Bancshares, Inc. (BWB) to maintain a competitive edge, evidenced by their net interest margin (NIM) expanding to 2.63% in the third quarter of 2025, even in a challenging rate environment.

Official mission statement

Bridgewater Bank, the primary subsidiary, is dedicated to providing responsive support and simple solutions to businesses, entrepreneurs, and successful individuals across the Twin Cities.

The bank centers its efforts on understanding and meeting the unique financial requirements of successful entrepreneurs and real estate investors, shaping their product offerings and service delivery model.

Vision statement

The company's vision is straightforward and highly localized, which is a key part of their strategy to foster deep client relationships and maintain strong core deposit growth, which was up 11.5% annualized in Q3 2025.

• To be the finest entrepreneurial bank in the Twin Cities.

Bridgewater Bancshares, Inc. slogan/tagline

While the company doesn't use a single, formal slogan in the traditional sense, their marketing and corporate profile consistently emphasize a commitment to challenging the status quo, which is an unconventional approach in banking.

The most descriptive and frequently used phrasing that captures their brand essence is:

• A Refreshing Approach to Banking.

This is backed by their stated core values, which form the cultural foundation of the organization:

• Unconventional: Challenging the standard banking model.
• Responsive: Providing quick, dedicated support.
• Dedicated: Commitment to client success.
• Growth: Driving expansion for clients and the bank.
• Accuracy: Ensuring precision in all financial dealings.

You can learn more by Exploring Bridgewater Bancshares, Inc. (BWB) Investor Profile: Who's Buying and Why?

Bridgewater Bancshares, Inc. (BWB) How It Works

Bridgewater Bancshares, Inc. (BWB) is a financial holding company that operates primarily through its subsidiary, Bridgewater Bank, serving as a specialized commercial bank for entrepreneurs, real estate investors, and successful individuals in the Twin Cities, Minnesota area. The bank makes money by taking in core deposits-which grew 11.5% annualized in the third quarter of 2025-and deploying that capital into targeted, high-yield commercial and real estate loans, driving a net interest margin (NIM) of 2.63% as of Q3 2025.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

The operational framework at Bridgewater Bank is built around a focused, relationship-driven, and branch-light model, which helps keep the cost structure efficient. Its efficiency ratio-a measure of noninterest expense to revenue-was 54.7% in the third quarter of 2025.

• Concentrated Footprint: Operations are focused tightly within the high-growth Twin Cities Metropolitan Statistical Area, which allows for deep local market knowledge and strong client relationships.
• Deposit-Driven Lending: The bank's primary value creation engine is gathering core deposits-totaling $4.293 billion as of September 30, 2025-and using that stable, lower-cost funding to originate commercial loans.
• Technology Integration: The successful systems conversion of the First Minnetonka City Bank acquisition and the launch of a new digital platform in 2025 are key steps to scale operations without proportionally growing branch overhead.
• Asset Quality Discipline: Nonperforming assets remain low, stable at 0.19% of total assets as of September 30, 2025, which shows a defintely disciplined underwriting process.

You can see how this focus impacts the bottom line by Breaking Down Bridgewater Bancshares, Inc. (BWB) Financial Health: Key Insights for Investors, where we dive into the numbers.

Given Company's Strategic Advantages

Bridgewater Bancshares, Inc. leverages its entrepreneurial focus and market expertise to gain share, especially during periods of industry consolidation in the Twin Cities. Its advantages are specific and quantifiable.

• Multifamily Lending Expertise: A significant competitive edge is its deep specialization in multifamily and affordable housing financing, a segment with structural tailwinds due to a nationwide housing shortage.
• High-Growth Target: Management has set a clear, ambitious goal to grow to $10 billion in total assets by 2030, which provides a long-term roadmap for capital deployment and strategic acquisitions.
• Relationship-Based Model: The bank targets a specific, affluent client base-entrepreneurs and high-net-worth individuals-who typically maintain higher, stickier deposit balances (core deposits were up 11.5% annualized in Q3 2025).
• M&A Disruption Capture: Ongoing consolidation among larger regional banks in the market allows Bridgewater Bank to attract experienced bankers and gain market share from displaced clients seeking a dedicated, local partner.

Bridgewater Bancshares, Inc. (BWB) How It Makes Money

Bridgewater Bancshares, Inc., the holding company for Bridgewater Bank, primarily makes money the way most commercial banks do: by borrowing low and lending high-a process called generating net interest income (NII). They focus heavily on commercial real estate (CRE) and multifamily lending in the Twin Cities, which drives the vast majority of their revenue.

The bank's core strategy is to attract low-cost core deposits from businesses and successful individuals, then deploy that capital into higher-yielding loans, particularly in the commercial real estate sector, including a national expertise in affordable housing lending.

Bridgewater Bancshares, Inc.'s Revenue Breakdown

For the third quarter of 2025 (Q3 2025), the financial engine of Bridgewater Bancshares, Inc. was overwhelmingly dependent on its core lending activities, with non-interest income playing a relatively minor, though still important, role.

Here's the quick math for Q3 2025: Total revenue was approximately $36.2 million, with Net Interest Income at $34.1 million. This means non-interest income-from things like service charges, treasury management, and gains on asset sales-was about $2.1 million, a sharp drop from the prior quarter's $3.6 million.

The 5.1% quarter-over-quarter growth in Net Interest Income, which totaled $1.6 million, is what kept the top line moving, driven by both loan portfolio growth and higher asset yields.

Business Economics

The economic fundamentals of Bridgewater Bancshares, Inc. are rooted in a relationship-based, branch-light model that targets the higher-value, more complex commercial lending space in the Minneapolis-St. Paul market.

• Net Interest Margin (NIM) Expansion: The bank's NIM, which is the spread between interest earned on assets (like loans) and interest paid on liabilities (like deposits), expanded slightly to 2.63% in Q3 2025. This small, one-basis-point increase shows they are managing their cost of funds better than their asset yields are falling, or that their loan repricing is favorable.
• Loan Portfolio Focus: The primary pricing strategy is centered on commercial real estate and multifamily properties, which are generally higher-yielding than consumer loans. Total gross loans reached $4.21 billion as of September 30, 2025, with strong annualized growth of 6.6% for the quarter. They are in a good position to continue this growth with a loan-to-deposit ratio in the lower half of their target range.
• Core Deposit Strategy: To fund this loan growth profitably, the bank prioritizes core deposits (deposits excluding brokered and large certificates of deposit) which are cheaper and stickier. Core deposits grew at an 11.5% annualized rate in Q3 2025, a key sign of a healthy funding base. This focus helps keep the cost of funds low, supporting that critical NIM.

To be fair, the decline in non-interest income suggests a temporary slowdown in fee-generating activities or asset sales, but the core lending business is defintely still pushing forward.

Bridgewater Bancshares, Inc.'s Financial Performance

Looking at the key performance indicators for Q3 2025, Bridgewater Bancshares, Inc. shows solid profitability and strong asset quality, despite missing analyst revenue forecasts for the quarter.

• Net Income: The bank reported net income of $11.6 million for the third quarter of 2025, a slight increase from $11.5 million in the prior quarter. This translates to diluted earnings per share (EPS) of $0.38.
• Return Metrics: Return on Average Assets (ROAA) stood at 0.86%, with Return on Average Tangible Common Equity (ROATCE) at 10.50%. These metrics demonstrate efficient use of assets and strong returns for tangible shareholder equity.
• Efficiency Ratio: The efficiency ratio, which measures non-interest expense as a percentage of revenue, was 54.7%. This is up from the prior quarter, indicating a slight increase in operating costs relative to revenue, which is a metric to watch.
• Asset Quality: Credit risk remains exceptionally well-managed, a hallmark of a focused commercial lender. Nonperforming assets to total assets held steady at a very low 0.19% at September 30, 2025. Annualized net loan charge-offs were minimal at just 0.03% of average loans.

What this estimate hides is the market's reaction: the stock dropped post-earnings due to the revenue miss, even with strong underlying credit quality and NII growth. You can get a deeper understanding of the company's long-term vision by reading their Mission Statement, Vision, & Core Values of Bridgewater Bancshares, Inc. (BWB).

Bridgewater Bancshares, Inc. (BWB) Market Position & Future Outlook

Bridgewater Bancshares, Inc. is positioned as a high-growth, locally-led entrepreneurial bank in the highly competitive Twin Cities Metropolitan Statistical Area (MSA). The company is deliberately targeting a growth trajectory to become a $10 billion bank by 2030, driven by its specialized commercial and real estate lending focus, which is a defintely ambitious goal.

As of September 30, 2025, the company reported total assets of $5.4 billion and demonstrated strong momentum in core funding, with core deposits increasing at an 11.5% annualized rate in the third quarter. This consistent core deposit growth is the key enabler for their mid-to-high single-digit loan growth outlook, allowing them to remain aggressive on the lending front.

Competitive Landscape

In the Twin Cities MSA, Bridgewater Bancshares, Inc. (BWB) operates as a specialist, competing against national giants who control the bulk of the deposit base. Its deposit market share is small, but its focus on commercial and entrepreneurial clients gives it a distinct edge over commodity consumer banking.

Opportunities & Challenges

The near-term outlook is a balancing act. You see clear opportunities for margin expansion and market share gains, but you also have to manage the higher costs associated with aggressive growth and technology upgrades.

Industry Position

Bridgewater Bancshares, Inc. is the second largest locally-led financial institution in the Twin Cities, which is a massive advantage in a market where local relationships still matter for commercial clients.

The company's strategic focus is not on mass-market retail, but on high-value commercial and real estate lending, where its asset quality remains exceptionally strong. For instance, nonperforming assets to total assets were only 0.19% as of September 30, 2025.

Here's the quick math on their lending focus:

• Multifamily lending makes up nearly 40% of the total loan portfolio.
• Loan balances increased 6.6% annualized in Q3 2025, exceeding the industry trend for many regional banks.
• Tangible book value per share grew to $14.93 by the end of Q3 2025, an annualized increase of 20.0%.

The successful integration of the First Minnetonka City Bank acquisition and the launch of a new retail and small business online banking platform in July 2025 are key steps in building the infrastructure needed to support the longer-term $10 billion asset goal. You can review the principles guiding this expansion here: Mission Statement, Vision, & Core Values of Bridgewater Bancshares, Inc. (BWB).