Laura Espeseth

About Laura Espeseth

Laura Espeseth is Chief Administrative Officer (CAO) at Bridgewater Bancshares (BWB), promoted to the Strategic Leadership Team effective September 15, 2025. She oversees “all aspects of finance and facilities,” joined BWB in 2017, and brings 20+ years of banking and public accounting experience; she previously served as Chief Accounting Officer (appointed in 2024) and led financial reporting, regulatory oversight, and process improvement. She holds a bachelor’s degree from St. Cloud State University’s Herberger Business School and is a graduate of the Graduate School of Banking at Colorado. Approximately 20% of BWB common shares were owned by Board and SLT members as of Sept 30, 2025, signaling insider alignment. Company performance context: in 2024 BWB grew core deposits by $559.4M (22.0%), reduced the loan-to-deposit ratio to 94.7% (from 100.4%), maintained superb asset quality (NCOs/avg loans 0.03%; NPAs/TA 0.01%), and increased tangible book value per share 5.1% to $13.49. 2024 Net Income was $32.8M and PPNR $45.9M.

Past Roles

External Roles

Fixed Compensation

• No individual compensation figures for Ms. Espeseth were disclosed in BWB’s 2025 proxy (NEO list excludes her for 2024), and the August 19, 2025 executive transitions 8-K did not include her compensation terms. Monitor future 8-Ks/DEF 14A for CAO pay details.

Performance Compensation

BWB’s 2024 Short‑Term Incentive (STI) design for NEOs (and indicative of senior executive incentives) was split 50% Company PPNR and 50% individual goals; RSUs are the primary long‑term incentive with four‑year ratable vesting.

• STI structure and outcomes (2024) :

  • Metric: Pre‑Provision, Pre‑Tax Net Revenue (PPNR) with threshold/target/max goals; individual goal component subjectively assessed.
  • Adjusted PPNR reached threshold but not target; individual performance payouts ranged 14%–34% of target, yielding total bonuses at 28%–34% of base salary for NEOs.

• Equity plan and vesting :

  • RSUs: vest 25% annually over four years; acceleration on double‑trigger CIC (involuntary termination or good reason in connection with CIC) and on death/disability.
  • Options: historic grants vest 25% annually over four years (2019/2022) or 20% over five years (2017); acceleration on CIC or death.

2024 STI Calibration (NEOs)

Note: While Ms. Espeseth’s specific incentive targets were not disclosed, BWB applies the same incentive frameworks across senior executives per plan descriptions.

Equity Ownership & Alignment

Employment Terms

• Ms. Espeseth: No specific employment agreement or severance/CIC terms were disclosed in the transitions 8‑K; future filings may provide details.
• Reference (NEO agreements dated Jan 1, 2022) for context :
  • Non‑compete within 25 miles and non‑solicit apply during employment and for 12 months post‑termination.
  • Severance (non‑CIC): 100% of base salary, paid over 12 months, plus COBRA contribution for up to 18 months, upon termination without cause/good reason resignation.
  • CIC economics (double‑trigger): 200% of base salary plus most recent cash bonus, lump sum, plus equity acceleration per plan; COBRA contributions.

Performance & Track Record

• Company operating highlights (2024): core deposit growth +$559.4M (22.0%), loan‑to‑deposit ratio 94.7% (from 100.4%), NCOs/avg loans 0.03%, NPAs/TA 0.01%, tangible book value per share +5.1% to $13.49.
• Leadership transitions (2025): retirement plans for long‑tenured executives (Crocker, Shellberg) with internal promotions including Espeseth to CAO, evidencing bench strength and succession planning.
• Strategic ambition and positioning: management targets growth to a $10B bank by 2030; outlook for NIM expansion in a rates‑down environment; SLT updated with internal talent.

Net Income and PPNR (Pay‑versus‑Performance disclosure)

Investment Implications

• Alignment and retention: Insider ownership (~20% by Board/SLT) and RSU four‑year vesting support long‑term orientation; anti‑hedging and clawback policies reduce misalignment risk. Ms. Espeseth’s promotion onto the SLT and finance remit (finance/facilities) enhance continuity during leadership transitions.
• Pay‑for‑performance discipline: STI tied 50% to PPNR with elevated 2024 targets (110% of budget to reach target) and below‑target payouts despite individual contributions, signaling restraint when financial performance moderates.
• Disclosure gap: Individual CAO pay/ownership not yet disclosed (not an NEO in 2024; no compensation terms in the 8‑K), limiting precision on personal alignment; monitor upcoming proxy/8‑Ks for CAO compensation and any ownership/pledging disclosures.
• Governance watch items: Significant share pledging exists among certain directors/NEOs (aggregate 1.61M shares); while no pledging is disclosed for Ms. Espeseth, the broader pledging profile warrants ongoing monitoring.
• Execution risk with opportunity: Planned retirements and internal promotions (including Espeseth) suggest orderly succession; management’s stated path to $10B assets by 2030 underscores growth ambition amid Twin Cities market opportunities, but also raises execution demands on expense control and capital/ALM stewardship under the CAO/CFO disciplines.

Data sources: BWB 2025 DEF 14A and Form 8‑K filings; investor presentation 8‑K materials as cited above.