Annual Review 2018

dear clients and shareholders,

It is a pleasure to provide the 2018 annual review for Bridgewater Bancshares, Inc. (Bridgewater Bank). We are pleased to share Bridgewater’s continued story of growth, profitability and efficiency. In 2018, we focused on building capital - an exciting journey during which we completed an initial public offering (IPO) of our stock, which is now listed on the Nasdaq with a ticker symbol of “BWB.” We have always been grateful for solid partnerships with clients, shareholders and vendors, and this year we have developed relationships with additional investors in connection with our IPO. This active network provides the foundation for our business to prosper. We look forward to building on the momentum that shareholders, team members and clients have helped create. Our financial results surpassed expectations and year-over-year results showed considerable growth. We posted financial returns in 2018 with higher earnings than any of the previous thirteen years. Our assets grew to $1.97 billion and our deposits and loans have grown at a pace that measures well into the double digits. We have seamlessly integrated the costs associated with being a publicly traded company and continue to operate as one of the most efficient banks in the country. In keeping with our original strategic plan, Bridgewater expanded its branch footprint in 2018 by entering into the downtown St. Paul market. With the addition of a new location in St. Paul, we now have seven locations to serve clients looking to establish a relationship with a locally-led bank that provides simple solutions backed by responsive support. Bridgewater operates in an attractive geographic market with a solid demographic profile - a healthy mix of both entrepreneurial and established companies, as well as a strong local economy. The appeal of this market has spurred significant M&A activity in recent years and several regional banks entered the market changing the banking landscape. As a result of this recent M&A activity, Bridgewater Bank has become one of the few banks with local leadership and now ranks as the 4th largest bank headquartered in Minnesota by asset size. Throughout 2018, we took advantage of this by adding experienced talent to our team. As M&A activity continues, we believe we are uniquely positioned to increase market share and capitalize on the opportunities resulting from this disruption. Since inception, Bridgewater has experienced tremendous success and we intend for this trend to continue. Recognized as the premier real estate lender in the Twin Cities, we plan to increase our market niche among seasoned real estate entrepreneurs and build out other products and services to meet the demands of our predominately commercial client base. We see opportunities in this market to expand our brand and investigate new avenues for both loan and deposit diversification. We remain committed to building shareholder value, and we intend to achieve this by delivering the same exceptional service without sacrificing earnings. As always, I remain appreciative of the efforts of the Bridgewater team: the staff, directors and shareholders. Together, we will continue to drive growth and maximize your share value. It is truly a pleasure to be building your Bank.

Contents letter from jerry baack Financial highlights



Jerry Baack Chairman of the Board



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