Bridgewater Bancshares, Inc. Annual Report

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

The following table presents the effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income for the year ended December 31, 2019, 2018 and 2017:

Year Ended December 31,

(dollars in thousands)

2019

2018

2017

Derivatives in

Location of Gain or (Loss) Reclassified

Gain (Loss)

Cash Flow Hedging

Reclassified from AOCI into Earnings

from AOCI into Income

Relationships

$

9

$

—

$

—

Interest rate swaps . . . . . . . . . . Interest expense

No amounts were reclassified from accumulated other comprehensive income into net income related to hedge ineffectiveness for these derivatives during the years ended December 31, 2019, 2018 and 2017, and no amounts are expected to be reclassified from accumulated other comprehensive income into net income related to hedge ineffectiveness over the next twelve months. Note 11: Federal Home Loan Bank Advances and Other Borrowings Federal Home Loan Bank Advances. The Company has entered into an Advances, Pledge, and Security Agreement with the FHLB whereby specific mortgage loans of the Bank’s with principal balances of $690,609 and $577,241 at December 31, 2019 and 2018, respectively, were pledged to the FHLB as collateral. FHLB advances are also secured with FHLB stock owned by the Company. Total remaining available borrowings were $209,840 and $122,120 at December 31, 2019 and 2018, respectively. The following table presents FHLB advances, by maturity, at December 31, 2019 and 2018:

2019

2018

Weighted Average

Weighted Average

Total

Total

Rate

Outstanding

Rate

Outstanding

2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

N/A

$

—

1.47 % $ 20,000

1.76 % 10,000 1.99 15,000 2.50 29,000 2.93 45,000 2.20 27,500 3.29 10,000

1.65

5,000

1.99 15,000 2.50 29,000 3.03 40,000

3.17

5,000

3.29 10,000

$ 136,500

$ 124,000

Federal Reserve Discount Window. At December 31, 2019 and 2018, the Company had the ability to draw additional borrowings of $113,164 and $114,051, respectively, from the Federal Reserve Bank of Minneapolis. The ability to draw borrowings is based on loan collateral pledged with principal balances of $159,568 and $159,616 as of December 31, 2019 and 2018, subject to the approval from the Board of Governors of the Federal Reserve System. Federal Funds Purchased. Federal funds purchased mature one business day from the transaction date. There were no federal funds purchased outstanding as of December 31, 2019 and $18,000 of federal funds purchased outstanding as of December 31, 2018. The interest rate as of December 31, 2018 was 2.63%.

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