Bridgewater Bancshares, Inc. Annual Report

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

Rather than basing recognition on the amount of the buyer's initial investment, which was the primary consideration under prior guidance, the analysis is now based on various factors including not only the loan to value, but also the credit quality of the borrower, the structure of the loan, and any other factors that may affect collectability. The new requirements could result in earlier revenue recognition; however, such sales are infrequent, and the impact of this change is not considered material to the Company’s consolidated financial statements. Note 23: Accumulated Other Comprehensive Income (Loss) The following table presents the components of other comprehensive income (loss) for the years ended December 31, 2019, 2018 and 2017.

Before Tax Tax Effect Net of Tax

Year Ended December 31, 2019 Net Unrealized Gain on Available for Sale Securities. . . . . . . . . . . . . . . . . . . . . . $ Less: Reclassification Adjustment for Net Gains Included in Net Income . . . . . . Total Unrealized Gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Unrealized Loss on Cash Flow Hedge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less: Reclassification Adjustment for Gains Included in Net Income. . . . . . . . . . Total Unrealized Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Year Ended December 31, 2018 Net Unrealized Loss on Available for Sale Securities . . . . . . . . . . . . . . . . . . . . . . $ Less: Reclassification Adjustment for Net Losses Included in Net Income . . . . . Total Unrealized Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Unrealized Gain on Cash Flow Hedge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less: Reclassification Adjustment for Gains Included in Net Income. . . . . . . . . . Total Unrealized Gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Year Ended December 31, 2017 Net Unrealized Gain on Available for Sale Securities. . . . . . . . . . . . . . . . . . . . . . $ Less: Reclassification Adjustment for Net Losses Included in Net Income . . . . . Total Unrealized Gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Unrealized Gain on Cash Flow Hedge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less: Reclassification Adjustment for Gains Included in Net Income. . . . . . . . . . Total Unrealized Gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Comprehensive Gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Other Comprehensive Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

9,514 $

(1,998) $

7,516

(516)

109

(407)

7,109

8,998

(1,889)

(962)

202

(760)

(9)

2

(7)

(971)

204

(767)

8,027 $

(1,685) $

6,342

(3,804) $

852 $

(2,952)

125

(26) 826

99

(3,679)

(2,853)

9

(2)

7

—

—

—

9

(2)

7

(3,670) $

824 $

(2,846)

6,354 $

(2,236) $

4,118

250

(88)

162

4,280

6,604

(2,324)

121

(42)

79 — 79

—

—

121

(42)

Other Comprehensive Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

6,725 $

(2,366) $

4,359

122