Bridgewater Bancshares, Inc. (BWB): BCG Matrix [Dec-2025 Updated]

As you assess Bridgewater Bancshares, Inc. (BWB)'s strategy to hit that ambitious $10 billion bank target by 2030, the picture is one of aggressive growth balanced by necessary clean-up. We see clear Stars, like the Multifamily and Affordable Housing lending segment growing at a 27% annualized clip, feeding off a solid Cash Cow base that maintains a 2.63% Net Interest Margin. But this growth demands tough calls: divesting redundant physical branches-the Dogs-while pouring capital into unproven digital platforms, our Question Marks. Here's the breakdown of exactly where BWB's resources are positioned for maximum impact.

Background of Bridgewater Bancshares, Inc. (BWB)

You're looking for the foundation of Bridgewater Bancshares, Inc. (BWB), and honestly, the numbers from late 2025 give a clear picture of where they stand. Bridgewater Bancshares, Inc. is a financial holding company based in St. Louis Park, Minnesota, and its banking arm, Bridgewater Bank, started way back in 2005. They've built their reputation by focusing on being the finest entrepreneurial bank, serving businesses, successful individuals, and entrepreneurs right there in the Twin Cities market.

As of September 30, 2025, Bridgewater Bancshares had total assets reaching $5.4 billion, supported by nine strategically located branches across Minnesota. They offer a full menu of services, including deposits, lending, and treasury management solutions, all while maintaining a commitment to a branch-light model. This structure helps keep their operations efficient, which is something they've historically prided themselves on.

Looking at their core business as of mid-2025, their loan portfolio totaled about $4.1 Billion. The lending focus is quite specific: Multifamily loans made up the largest segment at 38%, followed by Commercial Real Estate (CRE) at 32%. Commercial & Industrial (C&I) lending accounted for 13%, with 1-4 Family loans at 11%, and Construction & Development (C&D) at 4%. This concentration in commercial and multifamily real estate is key to understanding their revenue drivers.

The momentum going into the end of 2025 looked strong; management noted a return to normalized, profitable growth for the year, citing 12% annualized loan growth and 7% core deposit growth year-to-date. For the third quarter of 2025 specifically, net income hit $11.6 million, or $0.38 per diluted share, with net interest income climbing to $34.1 million. Core deposits showed particular strength, growing 11.5% annualized in that quarter alone.

Bridgewater Bancshares, Inc. (BWB) - BCG Matrix: Stars

Stars are defined by having high market share in a growing market. Bridgewater Bancshares, Inc. (BWB) exhibits Star characteristics through specific high-growth lending segments and overall portfolio expansion, positioning it as a leader in its operating area.

The Multifamily and Affordable Housing Lending segment is clearly a high-growth area for Bridgewater Bancshares, Inc. This vertical expanded at a 27% annualized pace year-to-date as of fiscal Q3 2025. As of fiscal Q3 2025, the affordable housing portfolio stood at $611 million, which included $467 million specifically in multifamily loans. This focus on a growing market segment, supported by longstanding relationships, signals a strong market position.

The overall health of the balance sheet supports the Star classification, showing significant asset growth. The Overall Gross Loan Portfolio for Bridgewater Bancshares, Inc. increased by 14.4% year-over-year, reaching $4.21 billion as of September 30, 2025. This growth is indicative of a high-growth product line maintaining a strong market share.

You can see a snapshot of key balance sheet metrics as of the end of the third quarter of 2025:

Fee-based income streams, which often reflect market activity and client engagement, also showed strength. Noninterest Income for Bridgewater Bancshares, Inc. hit a record quarter in Q2 2025. This record performance included nearly $1 million in swap fee income and $200,000 in investment advisory fees during that period. The total Noninterest Income for Q2 2025 was $3.6 million.

The competitive positioning in the core market is evident through market share gains. Bridgewater Bancshares, Inc. is taking market share in the Twin Cities, leveraging M&A disruption and a strong relationship model. This is quantified by an increase in deposit market share from 1.54% in 2024 to 1.84% as of September 30, 2025.

Key drivers supporting this market leadership include:

• Market disruption from Old National's acquisition of Bremer Bank.
• Continued focus on affordable housing and commercial & industrial spaces.
• Strong loan pipeline reaching three-year highs.
• Deposit market share increasing to 1.84% as of September 30, 2025.

Bridgewater Bancshares, Inc. (BWB) - BCG Matrix: Cash Cows

The Core Twin Cities Commercial Banking Operation of Bridgewater Bancshares, Inc. is positioned as the second largest locally-led bank in the market. This unit maintains a high market share in a mature, competitive market, characteristic of a Cash Cow.

Financial performance metrics reflect this stable, cash-generating position:

• Stable Net Interest Margin (NIM) (on a fully tax-equivalent basis) of 2.63% in Q3 2025.
• Management targeting a 3% NIM by early 2027.
• Consistent Net Income generation, reporting $11.6 million for the third quarter of 2025.
• Tangible book value per share stood at $14.93 at September 30, 2025.

The funding structure supports low-cost operations, a key trait for a Cash Cow:

The Core Deposit Base showed strong momentum, growing at an 11.5% annualized rate in Q3 2025, providing consistent, lower-cost funding. This growth contributed to total deposits reaching $4.3 billion as of September 30, 2025.

The market share within the Twin Cities MSA has increased, reflecting the high market share component of the Cash Cow designation. The deposit market share grew to 1.84% in 2025, up from 1.54% in 2024. The operational efficiency supports maximizing cash flow from this mature segment:

• Efficiency Ratio was 54.7% for Q3 2025.
• Adjusted Efficiency Ratio was 53.2% for Q3 2025.
• Net interest income increased 5.1% from the second quarter of 2025 to $34.1 million.

Investments focus on maintaining this position and improving efficiency, such as the successful systems conversion of the First Minnetonka City Bank acquisition completed in Q3 2025. The company also has a planned branch closure in December 2025 of one of the two branches acquired from that transaction.

Bridgewater Bancshares, Inc. (BWB) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

Redundant Physical Branches

You're looking at the physical footprint rationalization following the First Minnetonka City Bank (FMCB) integration, which ties up capital in assets that may not be contributing to growth. Bridgewater Bancshares, Inc. is executing a plan to consolidate this presence.

• Planned branch closure in December 2025 of one of the two branches acquired from FMCB in 2024.
• Total gross loans at September 30, 2025, were $4.21 billion.

Legacy Office Loan Portfolio

The legacy portfolio, which includes assets from the FMCB acquisition, shows minor deterioration, signaling potential low-return capital allocation.

• One multifamily loan migrated from special mention to substandard during the third quarter of 2025.
• Annualized net loan charge-offs as a percentage of average loans was 0.03% for the third quarter of 2025.
• This compares to 0.00% for the second quarter of 2025.

Here's the quick math on asset quality as of September 30, 2025:

Non-performing Assets (NPAs) to Total Assets

Even at low levels, NPAs represent capital that isn't earning its required return, fitting the Dog profile of consuming resources without significant upside.

• Nonperforming assets to total assets was 0.19% at September 30, 2025.
• This figure was stable with 0.19% at June 30, 2025.

Finance: draft 13-week cash view by Friday.

Bridgewater Bancshares, Inc. (BWB) - BCG Matrix: Question Marks

You're looking at the areas of Bridgewater Bancshares, Inc. (BWB) that are in high-growth markets but currently hold a low market share. These units consume cash now, hoping to become Stars later. Honestly, they are the big bets for future growth.

The New Retail and Small Business Online Banking Platform, launched in July 2025, fits this mold perfectly. It's a necessary investment for digital market share, though specific investment outlay figures aren't public. The strategic execution of this platform launch was noted alongside the successful systems conversion of the First Minnetonka City Bank acquisition in Q3 2025.

The National Affordable Housing Vertical is another key area demanding resources for national expansion outside the core Twin Cities market. This initiative shows strong top-line growth, which is a good sign for a Question Mark. The portfolio size itself is substantial, reflecting deep commitment to this high-growth niche.

Sustained Core Deposit Growth is the engine management points to for funding future loan expansion. This metric shows strong momentum, which is exactly what you want to see when funding aggressive growth initiatives. The pace of this growth is the primary governor for continued aggressive loan growth.

The Subordinated Debt Issuance was a capital move to support growth, but it came with an immediate, measurable cost to profitability. Issuing $80.0 million of 7.625% Fixed-to-Floating Rate Subordinated Notes in June 2025 to redeem $50.0 million of older 5.25% notes created a direct, near-term drag on the net interest margin.

Here's a quick look at the hard numbers associated with these growth drivers and associated costs as of the third quarter of 2025:

You need to watch how these Question Marks convert. If the new digital platform gains traction fast, or the housing vertical continues its pace, they move toward Star status. If not, the cash burn makes them Dogs. The immediate impact of the debt was a 7 basis point net drag on the margin in Q3 2025, even as core deposits grew at an 11.5% annualized rate.

• New Retail and Small Business Online Banking Platform: Launched July 2025.
• National Affordable Housing Vertical: Portfolio at $611 million, growing at 27% annualized YTD.
• Sustained Core Deposit Growth: $92.1 million increase QoQ in Q3 2025.
• Subordinated Debt Drag: 7 basis point net drag on margin in Q3 2025.

The bank is clearly prioritizing investment for market share capture in these areas. The $611 million affordable housing portfolio, growing at 27% annualized, is a concrete example of where capital is being deployed for high-growth prospects. Finance: draft 13-week cash view by Friday.