Bridgewater Bancshares, Inc. Annual Report

(3) Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of 21% beginning in 2018 and 35% for 2017, 2016 and 2015. (4) Nonperforming assets are defined as nonaccrual loans plus loans 90 days past due plus foreclosed assets. (5) Ratio excludes the amortization of tax credit investments and represents a non-GAAP financial measure. See "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" for further details. (6) ROA and ROE, excluding a one-time additional expense of $2.0 million related to the revaluation of the deferred tax asset, would have been 1.30% and 14.75%, respectively for the year ended December 31, 2017. As of and for the year ended December 31, (dollars in thousands) 2019 2018 2017 2016 2015 Selected Balance Sheet Data Total Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,268,830 $ 1,973,741 $ 1,616,612 $ 1,260,394 $ 928,686 Total Loans, Gross . . . . . . . . . . . . . . . . . . . . . . . . . 1,912,038 1,664,931 1,347,113 1,000,739 799,497 Allowance for Loan Losses . . . . . . . . . . . . . . . . . . 22,526 20,031 16,502 12,333 10,052 Securities Available for Sale . . . . . . . . . . . . . . . . . 289,877 253,378 229,491 217,083 100,769 Goodwill and Other Intangibles. . . . . . . . . . . . . . . 3,487 3,678 3,869 4,060 — Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,823,310 1,560,934 1,339,350 1,023,508 761,882 Federal Funds Purchased . . . . . . . . . . . . . . . . . . . . — 18,000 23,000 44,000 13,000 FHLB Advances and Notes Payable . . . . . . . . . . . 149,500 139,000 85,000 72,000 69,042 Subordinated Debentures, Net of Issuance Costs . 24,733 24,630 24,527 — 1,500 Tangible Common Equity (1) . . . . . . . . . . . . . . . . . 241,307 217,320 133,293 111,306 80,178 Total Shareholders' Equity . . . . . . . . . . . . . . . . . . . 244,794 220,998 137,162 115,366 80,178 Average Total Assets . . . . . . . . . . . . . . . . . . . . . . . 2,114,211 1,777,592 1,451,732 1,098,654 806,625 Average Common Equity. . . . . . . . . . . . . . . . . . . . 232,539 194,083 128,123 102,588 63,981 (1) Represents a non-GAAP financial measure. See “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures” for further details. Selected Income Statement Data Interest Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 103,778 $ 85,226 66,346 $ 50,632 $ 39,193 Interest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,646 20,488 12,173 8,514 6,498 Net Interest Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,132 64,738 54,173 42,118 32,695 Provision for Loan Losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,700 3,575 4,175 3,250 1,500 Net Interest Income after Provision for Loan Losses . . . . . 71,432 61,163 49,998 38,868 31,195 Noninterest Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,826 2,543 2,536 2,567 1,872 Noninterest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,932 31,562 25,496 20,168 14,817 Income Before Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . 38,326 32,144 27,038 21,267 18,250 Provision for Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,923 5,224 10,149 8,052 7,055 Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 31,403 $ 26,920 $ 16,889 $ 13,215 $ 11,195 Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS General The following discussion and analysis of our results of operations and financial condition should be read in conjunction with the “Selected Financial Data” and our consolidated financial statements and related notes included elsewhere in this report. In addition to historical information, this discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Certain risks, uncertainties and other factors, including but not limited to those set forth under “Forward-Looking Statements,” “Risk Factors” and elsewhere in this report, may cause actual results to differ materially from those projected in the forward looking statements. We assume no obligation to update any of these forward-looking statements. Readers of our Annual Report on Form 10-K should consider these risks and uncertainties in evaluating forward-looking statements and should not place undue reliance on forward-looking statements. For the year ended December 31, (dollars in thousands) 2019 2018 2017 2016 2015

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