Bridgewater Bancshares, Inc. Annual Report

December 31, 2019

December 31, 2018

December 31, 2017

Average Balance

Interest

Yield/

Average Balance

Interest

Yield/

Average Balance

Interest

Yield/

& Fees Rate

& Fees Rate

& Fees Rate

(dollars in thousands) Interest Earning Assets: Cash Investments. . . . . . . . $ 46,366 $ 755 1.63 % $ 22,962 $ 250 1.09 % $ 25,306 $ 226 0.89 % Investment Securities: Taxable Investment Securities . . . . . . . . . . . . 149,967 4,354 2.90 129,486 2,878 2.22 102,115 1,892 1.85 Tax-Exempt Investment Securities (1) . . . . . . . . . . 101,012 4,327 4.28 116,557 4,830 4.14 130,289 6,289 4.83 Total Investment Securities . . . . . . . . 250,979 8,681 3.46 246,043 7,708 3.13 232,404 8,181 3.52 Loans (2) . . . . . . . . . . . . . . . 1,785,937 94,852 5.31 1,491,166 78,033 5.23 1,177,491 60,024 5.10 Federal Home Loan Bank Stock . . . . . . . . . . . 7,916 398 5.03 6,321 249 3.94 4,288 115 2.68 Total Interest Earning Assets . . . . 2,091,198 104,686 5.01 % 1,766,492 86,240 4.88 % 1,439,489 68,546 4.76 % Noninterest Earning Assets . . . . . . . . . . . . . . . 23,013 11,100 12,243 Total Assets . . . . . . . . $ 2,114,211 $ 1,777,592 $ 1,451,732 Interest Bearing Liabilities: Deposits: Interest Bearing Transaction Deposits . . . 223,376 1,634 0.73 % 177,335 635 0.36 % 161,454 389 0.24 % Savings and Money Market Deposits . . . . . . . 447,040 7,747 1.73 381,318 4,681 1.23 284,641 2,218 0.78 Time Deposits . . . . . . . . . . 349,148 8,379 2.40 300,021 5,731 1.91 286,840 4,360 1.52 Brokered Deposits . . . . . . . 261,023 6,236 2.39 232,022 4,924 2.12 185,144 2,752 1.49 Total Deposits . . . . . . 1,280,587 23,996 1.87 1,090,696 15,971 1.46 918,079 9,719 1.06 Federal Funds Purchased . . . . . . . . . . . . 7,433 186 2.50 29,671 637 2.15 15,247 169 1.11 Notes Payable . . . . . . . . . . 13,750 501 3.64 15,750 594 3.77 17,750 656 3.70 FHLB Advances . . . . . . . . 133,968 3,407 2.54 82,562 1,718 2.08 56,458 880 1.56 Subordinated Debentures . . . . . . . . . . . 24,686 1,556 6.30 24,582 1,568 6.38 12,253 749 6.11 Total Interest Bearing Liabilities . . . . . . . . 1,460,424 29,646 2.03 % 1,243,261 20,488 1.65 % 1,019,787 12,173 1.19 % Noninterest Bearing Liabilities: Noninterest Bearing Transaction Deposits . . . 414,377 330,898 299,232 Other Noninterest Bearing Liabilities . . . . . 6,871 9,350 4,590 Total Noninterest Bearing Liabilities . . . . . . . . 421,248 340,248 303,822 Shareholders' Equity . . . . . 232,539 194,083 128,123 Total Liabilities and Shareholders' Equity. . . . $ 2,114,211 $ 1,777,592 $ 1,451,732 Net Interest Income / Interest Rate Spread . . . . 75,040 2.98 % 65,752 3.23 % 56,373 3.57 % Net Interest Margin (3) . . . . 3.59 % 3.72 % 3.92 % Taxable Equivalent Adjustment: Tax-Exempt Investment Securities . (908) (1,014) (2,200) Net Interest Income . . . . . . $ 74,132 $ 64,738 $ 54,173

(1) Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis, assuming a federal income tax rate of 21% in 2019 and 2018 and 35% in 2017.

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