Bridgewater Bancshares Reports 42.5% Increase in Net Income for Q2 2025

Bridgewater Bancshares, Inc. reported significant financial growth in its latest quarterly filing, with net income reaching $11.5 million for the second quarter of 2025, a 42.5% increase from $8.1 million in the same period last year. Earnings per diluted share also rose to $0.38, compared to $0.26 in the prior year. For the first half of 2025, net income totaled $21.2 million, up from $15.9 million in the first half of 2024. The company attributed this growth to increased net interest income, which rose to $32.5 million in Q2 2025, a 30.1% increase from $24.996 million in Q2 2024, driven by higher loan volumes and yields.

Total assets increased to $5.30 billion as of June 30, 2025, up from $5.07 billion at the end of 2024, reflecting a 4.5% growth. The loan portfolio also expanded, with gross loans reaching $4.15 billion, a 7.2% increase from $3.87 billion at the end of 2024. This growth was bolstered by the acquisition of First Minnetonka City Bank (FMCB) in December 2024, which added approximately $225.7 million in deposits and $117.1 million in loans. The company’s total deposits increased to $4.24 billion, a 3.7% rise from the previous period, with core deposits growing by 5.1%.

Operationally, Bridgewater Bancshares has seen a rise in its employee count, with 308 full-time equivalent employees as of June 30, 2025, compared to 258 a year earlier, largely due to the FMCB acquisition. The efficiency ratio improved to 52.6% in Q2 2025, down from 58.7% in Q2 2024, indicating better cost management relative to income. The company also reported a provision for credit losses of $2 million for the quarter, up from $600,000 a year prior, reflecting the growth in the loan portfolio and increased reserves for potential losses.

Looking ahead, Bridgewater Bancshares is optimistic about its growth trajectory, particularly in the Twin Cities market, where it aims to leverage its expanded footprint and enhanced service offerings post-acquisition. The company is also evaluating the potential impacts of recent tax law changes on its operations. With a strong capital position, evidenced by a total shareholders' equity of $476.3 million, the company is well-positioned to navigate future challenges and capitalize on growth opportunities.