Wall St futures edge up after monthly gains; more earnings ahead
Investing.com -- - Bridgewater Bancshares Inc. (NASDAQ:BWB) shares fell 9.3% in after-hours trading Tuesday after the company reported third-quarter earnings that missed analyst expectations despite showing loan and deposit growth.
The parent company of Bridgewater Bank reported adjusted earnings per share of $0.39 for the third quarter of 2025, falling short of analyst estimates of $0.40. Revenue came in at $36.2 million, below the consensus estimate of $36.8 million.
Net interest income increased by $1.6 million, or 5.1%, from the second quarter, while the company’s net interest margin improved slightly to 2.63%, up one basis point from the previous quarter. Gross loans grew by $68.8 million, representing a 6.6% annualized increase, and total deposits rose by $56.0 million, a 5.2% annualized gain.
"Bridgewater produced another quarter of strong net interest income growth as we continued to execute on our strategic priority of gaining both loan and deposit market share," said Chairman and CEO Jerry Baack. "With a favorable outlook for continued balance sheet growth and net interest margin expansion from here, we are poised for improved profitability trends moving forward."
Despite the positive growth metrics, the bank’s efficiency ratio increased to 54.7% from 52.6% in the previous quarter, indicating higher operating costs relative to revenue. Noninterest expense rose to $20.0 million, up $1.0 million from the second quarter, driven primarily by increases in salaries and employee benefits, marketing and advertising, and professional consulting fees.
The bank maintained stable asset quality with nonperforming assets to total assets remaining unchanged at 0.19% compared to the previous quarter. Net loan charge-offs as a percentage of average loans were 0.03%, compared to 0.00% in the second quarter.
Bridgewater also reported that it successfully completed the systems conversion of its First Minnetonka City Bank acquisition and plans to close one of the two branches acquired from FMCB in December 2025.
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