Bridgewater Bancshares, Inc. Annual Report

As of and for the year ended December 31,

2019

2018

2017

2016

2015

Per Common Share Data (1) Basic Earnings Per Share. . . . . . . . . . . . . . . . . . . . . . . . . . $ Diluted Earnings Per Share . . . . . . . . . . . . . . . . . . . . . . . . Book Value Per Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tangible Book Value Per Share (2) . . . . . . . . . . . . . . . . . . .

1.07 $

0.93 $

0.69 $

0.59 $

0.65 0.64 4.05

1.05 8.45 8.33

0.91 7.34 7.22

0.68 5.56 5.40

0.58 4.69 4.53

4.05 Basic Weighted Average Shares Outstanding . . . . . . . . . . . 29,358,644 29,001,393 24,604,464 22,294,837 17,269,448 Diluted Weighted Average Shares Outstanding . . . . . . . . . 29,996,776 29,436,214 25,017,690 22,631,741 17,606,253 Shares Outstanding at Period End . . . . . . . . . . . . . . . . . . . 28,973,572 30,097,274 24,679,861 24,589,861 19,819,349 Selected Performance Ratios Return on Average Assets (ROA) . . . . . . . . . . . . . . . . . . . 1.49 % 1.51 % 1.16 % (6) 1.20 % 1.39 % Return on Average Common Equity (ROE) . . . . . . . . . . . . 13.50 13.87 13.18 (6) 12.88 17.50 Return on Average Tangible Common Equity (2) . . . . . . . . . 13.72 14.15 13.60 13.23 17.50 Yield on Interest Earning Assets . . . . . . . . . . . . . . . . . . . . 5.01 4.88 4.76 4.78 4.99 Yield on Total Loans, Gross . . . . . . . . . . . . . . . . . . . . . . . 5.31 5.23 5.10 5.20 5.37 Cost of Interest Bearing Liabilities. . . . . . . . . . . . . . . . . . . 2.03 1.65 1.19 1.09 1.08 Cost of Total Deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.42 1.12 0.80 0.76 0.77 Net Interest Margin (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.59 3.72 3.92 4.00 4.18 Efficiency Ratio (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47.4 46.5 44.4 45.8 43.6 Adjusted Efficiency Ratio (5) . . . . . . . . . . . . . . . . . . . . . . . 43.3 41.7 41.1 N/A N/A Noninterest Expense to Average Assets . . . . . . . . . . . . . . . 1.75 1.78 1.76 1.84 1.84 Adjusted Noninterest Expense to Average Assets (5) . . . . . . 1.59 1.59 1.62 N/A N/A Loan to Deposit Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104.9 106.7 100.6 97.8 104.9 Core Deposits to Total Deposits. . . . . . . . . . . . . . . . . . . . . 80.7 74.2 76.7 77.2 79.4 Tangible Common Equity to Tangible Assets (2) . . . . . . . . . 10.65 11.03 8.26 8.86 8.63 Selected Asset Quality Data Loans 30-89 Days Past Due. . . . . . . . . . . . . . . . . . . . . . . . $ 403 $ 311 $ 664 $ 677 $ 1,087 Loans 30-89 Days Past Due to Total Loans . . . . . . . . . . . . 0.02 % 0.02 % 0.05 % 0.07 % 0.14 % Nonperforming Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 461 $ 581 $ 1,139 $ 2,323 $ 2,338 Nonperforming Loans to Total Loans . . . . . . . . . . . . . . . . 0.02 % 0.03 % 0.08 % 0.23 % 0.29 % Foreclosed Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ 581 $ 4,183 $ 726 Nonaccrual Loans to Total Loans . . . . . . . . . . . . . . . . . . . 0.02 % 0.03 % 0.08 % 0.23 % 0.29 % Nonaccrual Loans and Loans Past Due 90 Days and Still Accruing to Total Loans . . . . . . . . . . . . . . . . . . . . . 0.02 0.03 0.08 0.23 0.29 Nonperforming Assets (4) . . . . . . . . . . . . . . . . . . . . . . . . . . $ 461 $ 581 $ 1,720 $ 6,506 $ 3,064 Nonperforming Assets to Total Assets (4) . . . . . . . . . . . . . . 0.02 % 0.03 % 0.11 % 0.52 % 0.33 % Allowance for Loan Losses to Total Loans. . . . . . . . . . . . . 1.18 1.20 1.22 1.23 1.26 Allowance for Loans Losses to Nonperforming Loans . . . . 4,886.33 3,447.68 1,448.81 530.91 429.94 Net Loan Charge-Offs (Recoveries) to Average Loans . . . . 0.01 0.00 0.00 0.11 0.14 Capital Ratios (Bank Only) Tier 1 Leverage Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.01 % 10.82 % 9.83 % 9.24 % 9.49 % Tier 1 Risk-based Capital Ratio . . . . . . . . . . . . . . . . . . . . . 11.72 11.63 11.15 11.38 11.06 Total Risk-based Capital Ratio . . . . . . . . . . . . . . . . . . . . . 12.16 12.76 12.37 12.63 12.31 Capital Ratios (Consolidated) Tier 1 Leverage Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.69 % 11.23 % 8.38 % 9.44 % 8.89 % Tier 1 Risk-based Capital Ratio . . . . . . . . . . . . . . . . . . . . . 11.39 12.07 9.49 11.49 10.34 Total Risk-based Capital Ratio . . . . . . . . . . . . . . . . . . . . . 12.98 14.55 12.46 12.74 11.59 Growth Ratios Percentage Change in Total Assets . . . . . . . . . . . . . . . . . . 15.0 % 22.1 % 28.3 % 35.7 % 32.3 % Percentage Change in Total Loans, Gross . . . . . . . . . . . . . 14.8 23.6 34.6 25.2 33.6 Percentage Change in Total Deposits . . . . . . . . . . . . . . . . . 16.8 16.5 30.9 34.3 26.7 Percentage Change in Shareholders' Equity . . . . . . . . . . . . 10.8 61.1 18.9 43.9 49.2 Percentage Change in Net Income . . . . . . . . . . . . . . . . . . . 16.7 59.4 27.8 18.0 12.8 Percentage Change in Diluted Earnings Per Share . . . . . . . 14.5 35.5 15.6 (8.2) 5.7 Percentage Change in Tangible Book Value Per Share (2) . . 15.3 33.7 19.3 11.9 20.3 (1) Includes shares of common stock and non-voting common stock. On October 25, 2018, the Company exchanged shares of common stock for all of the outstanding shares of non-voting common stock. Following the exchange, no shares of non-voting common stock were outstanding. (2) Represents a non-GAAP financial measure. See "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" for further details.

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