Bridgewater Bancshares Achieves Record Revenue and Pre-Provision Net Revenue in Q3 2026
Bridgewater, MN - Bridgewater Bancshares, Inc. (the company) announced a record-breaking third quarter for the year 2026, with total revenue and pre-provision net revenue reaching unprecedented levels. The company's quarterly earnings call provided insight into the key drivers of this success.
According to Jerry Baack, Chairman and CEO, the disciplined execution of a thoughtful strategy resulted in an incredibly strong quarter, marked by growth and profitability objectives being met with flying colors. The company has shifted its focus from solely generating robust loan growth to creating balance sheet growth that prioritizes optimizing profitability.
This strategic approach allowed Bridgewater to strategically slow its pace of loan growth to the mid-single digit range earlier in the year, accommodating for trends such as increased loan competition and seasonal core deposit growth. As expected, core deposit growth returned in the back half of the year with annualized growth of nearly 20%. This enabled the company to accelerate loan growth during the past quarter to over 7% annualized, resulting in loan and core deposit growth now being in line on a year-to-date basis.
This strategic maneuvering was instrumental in driving record total revenue and pre-provision net revenue for the third quarter. Additionally, a decline in non-interest expense allowed Bridgewater to move its efficiency ratio below 50% for the first time since the first quarter of 2023.
The company's net interest income also experienced growth, with ongoing loan repricing driving a further 2 basis points of net interest margin expansion in the third quarter. This success was attributed to proactive steps taken by Bridgewater to proactively grow its variable rate mix of the loan portfolio.
Strong asset quality trends continued to be a positive aspect of the company's performance, with progress being made on two loans that are hoped to be resolved in the near term. As Jerry Baack stated, "This is a great example of how we are leveraging data, our market knowledge, balance sheet, and understanding of our client base to strategically and efficiently drive the growth and profitability of the bank."
The company's strong performance in Q3 2026 sets it up for success in the coming quarters, particularly as they enter a new rates-up environment. With their balance sheet better positioned than ever before, Bridgewater is poised to navigate this shift with confidence.
