Bridgewater Bancshares, Inc. Annual Report

Bridgewater Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (dollars in thousands, except share data)

maturities will differ from expected maturities for mortgage-backed, SBA securities and asset-backed securities because borrowers may have the right to call or prepay obligations without penalties.

December 31, 2019 Amortized Cost Fair Value 15,128 $ 15,201 65,790 67,216 62,287 65,816 Due in One Year or Less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Due After One Year Through Five Years . . . . . . . . . . . . . . . . . . . . . . Due After Five Years Through 10 Years. . . . . . . . . . . . . . . . . . . . . . . Due After 10 Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,900 12,684 Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154,105 160,917 Mortgage-Backed Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,312 64,728 SBA Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,126 49,559 Asset-Backed Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,673 14,673 Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 283,216 $ 289,877

As of December 31, 2019 and 2018, the securities portfolio was completely unencumbered. The following presents a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses, for the years ended December 31, 2019, 2018 and 2017:

2019 2017 Proceeds From Sales of Securities . . . . . . . . . . . . . . . . . . . . . . . $ 42,864 $ 24,684 $ 36,209 Gross Gains on Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 774 290 405 Gross Losses on Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (258) (415) (655) 2018

Note 5: Loans

The following table presents the components of loans at December 31, 2019 and 2018:

December 31, December 31, 2019 2018

Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 276,035 $ 260,833 Construction and Land Development . . . . . . . . . . . . . . . . . . . . . . . . 196,776 210,041 Real Estate Mortgage: 1-4 Family Mortgage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260,611 226,773 Multifamily. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 515,014 407,934 CRE Owner Occupied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,584 64,458 CRE Non-owner Occupied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 592,545 490,632 Total Real Estate Mortgage Loans. . . . . . . . . . . . . . . . . . . . . . . . . . . 1,434,754 1,189,797 Consumer and Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,473 4,260 Total Loans, Gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,912,038 1,664,931 Allowance for Loan Losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (22,526) (20,031) Net Deferred Loan Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,512) (4,515) Total Loans, Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,884,000 $ 1,640,385

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