Bridgewater Bancshares, Inc. Annual Report

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

Condensed Statements of Income

December 31, December 31, December 31, 2019 2018 2017

INCOME Dividend Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Interest Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EXPENSE Interest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Interest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . LOSS BEFORE INCOME TAX BENEFIT AND EQUITY IN UNDISTRIBUTED EARNINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Income Tax Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . LOSS BEFORE EQUITY IN UNDISTRIBUTED EARNINGS . . . . . . . . Equity in Undistributed Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,040 $

1,100 $

—

27

3

9

158

136

145 154

1,225

1,239

2,056

2,162 1,152 3,314

1,405

996

555

3,052

1,960

(1,827)

(2,075)

(1,806)

776

924

713

(1,051) 32,454

(1,151) 28,071

(1,093) 17,982

$ 31,403 $ 26,920 $ 16,889

Condensed Statements of Cash Flows

December 31, December 31, December 31, 2019 2018 2017

CASH FLOWS FROM OPERATING ACTIVITIES Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 31,403 $ 26,920 $ 16,889 Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities: Equity in Undistributed Earnings of Subsidiaries . . . . . . . . . . . . . . . . . . . . (32,454) (28,071) (17,982) Changes in Other Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311 (368) 180 Net Cash Used by Operating Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . (740) (1,519) (913) CASH FLOWS FROM INVESTING ACTIVITIES Net Increase in Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (742) — — Investment in Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (25,000) (25,000) Net Cash Used in Investing Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . (742) (25,000) (25,000) CASH FLOWS FROM FINANCING ACTIVITIES Principal Payments on Notes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,000) (2,000) (2,000) Proceeds from Issuance of Subordinated Debt . . . . . . . . . . . . . . . . . . . . . . . . — — 24,484 Stock Options Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258 106 180 Stock Repurchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,959) — — Issuance of Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 58,857 — Net Cash Provided (Used) by Financing Activities . . . . . . . . . . . . . . . . . . (16,701) 56,963 22,664 NET CHANGE IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . . (18,183) 30,444 (3,249) Cash and Cash Equivalents Beginning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,498 15,054 18,303 Cash and Cash Equivalents Ending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27,315 $ 45,498 $ 15,054

125