What Bridgewater Bancshares Inc told the SEC could break it.

Bridgewater also has a concentration of large loans to a small number of borrowers: as of December 31, 2025 its 10 largest borrowing relationships accounted for approximately 15.3% of its total gross loan portfolio; deterioration of the underlying businesses or collateral securing these loans, or default by one of these large borrowers, presents a concentrated risk to its lending operations and earnings.

“As of December 31, 2025, our 10 largest borrowing relationships accounted for approximately 15.3% of our total gross loan portfolio.”

Bridgewater has a concentration of large deposits from a small number of clients: as of December 31, 2025 its 10 largest depositor relationships accounted for approximately 16.2% of total deposits, some of whom may hold balances above FDIC insurance limits; if one or more of these depositors changes its relationship and withdraws all or a significant portion of its balances, the Bank's liquidity and funding costs could be materially affected.

“As of December 31, 2025, our 10 largest depositor relationships accounted for approximately 16.2% of our total deposits.”

Bridgewater's loan book is geographically concentrated in the Minneapolis–St. Paul (Twin Cities) MSA, where it is headquartered (St. Louis Park, MN) and operates nine offices: as of December 31, 2025 over 75% of the Bank's real estate loan balances were secured by properties located in the Twin Cities MSA, with substantial commercial-real-estate (including non-owner-occupied CRE) exposure, so a downturn in that single metropolitan real-estate market would disproportionately impair its collateral values and credit quality.

“As of December 31, 2025, over 75% of the Bank's real estate loan balances were secured by properties located in the Twin Cities MSA.”

Bridgewater relies on wholesale funding for liquidity and interest-rate management: brokered deposits — whose availability is uncertain and subject to competitive forces and regulation — totaled $810.5 million at December 31, 2025, and it depends on secured FHLB advances (collateralized by $1.62 billion of real estate and commercial loans) and Federal Reserve discount-window availability (~$1.03 billion); if it cannot pledge sufficient collateral or access brokered deposits, it could lose these liquidity sources at a time of need.

“The Company uses brokered deposits, the availability of which is uncertain and subject to competitive market forces and regulation, for liquidity and interest rate risk management purposes.”