Bridgewater Bancshares Inc. Depositary Shares Each Representing a 1/100th Interest in a Share of 5.875% Non-Cumulative Perpetual Preferred Stock Series A (BWBBP)

FairStock Score: 72/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach BWBBP as a preferred equity claim on a small regional bank, not as a common stock. The issuer, Bridgewater Bancshares, is a $534 million market-cap bank holding company with 355 employees, focused on commercial, multifamily and real estate lending. The preferred pays a 5.875% non-cumulative coupon and at the 2026-10-13 close of $19.15 yields 7.67%. That is a fair income proposition if the bank remains sound, but the security is perpetual, subordinated, and dividends can be skipped without accumulation. The bank's recent earnings have been decent: net income was $14.0 million in fiscal Q2 2026 (quarter ended 2026-06-30), $17.4 million in fiscal Q1 2026, $46.1 million in FY2025, and $32.8 million in FY2024, after $40.0 million in FY2023. So there was a dip in FY2024 and a rebound in FY2025. FairStock calculates ROE of 11.0%, P/B of 1.11, P/E of 12.28, and a Piotroski F-Score of only 3/9. The Lynch classification is STALWART, based on 11.1% five-year profit growth, yet the weak F-Score and missing bank-specific data - CET1, NIM, and combined ratio - mean I cannot fully underwrite the balance sheet. For the preferred, the 7.67% yield compensates for non-cumulative and perpetual risk. The common valuation looks reasonable, not bargain-bin, and the preferred trades at a yield that suggests some credit or rate concern. I would want to see consistent earnings, stable asset quality, and a clear preferred dividend record before calling it a high-quality value. A bank can look cheap on book value and still be a value trap if credit deteriorates.

In plain English: Bridgewater Bancshares is a small bank holding company that makes commercial and real estate loans. The bank is profitable and earnings rose in the latest reported quarter, but the preferred shares pay a fixed dividend that is not guaranteed and have no maturity. At $19.15, the yearly dividend works out to 7.67%, which looks cheap against the dividend but reflects real credit and dividend risk.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer