Bridgewater Bancshares, Inc. Annual Report

The investment securities portfolio consists primarily of municipal securities, U.S. government agency mortgage-backed securities, Small Business Administration, or SBA, securities, and corporate securities comprised of subordinated debentures of bank and financial holding companies. In addition, the Company also holds U.S. treasury securities, asset-backed securities and other debt securities, all with varying contractual maturities. These maturities do not necessarily represent the expected life of the securities as the securities may be called or paid down without penalty prior to their stated maturities. All investment securities are held as available for sale. Securities available for sale were $289.9 million at December 31, 2019, compared to $253.4 million at December 31, 2018, an increase of $36.5 million, or 14.4%. At December 31, 2019, municipal securities represented 36.5% of the investment securities portfolio, government agency mortgage-backed securities represented 22.0% of the portfolio, SBA securities represented 17.1% of the portfolio, corporate securities represented 17.3% of the portfolio, U.S. treasury securities represented 1.7% of the portfolio, asset-backed securities represented 5.0% of the portfolio, and other commercial mortgage-backed securities represented 0.4% of the portfolio. The following table presents the amortized cost and fair value of securities available for sale, by type, at December 31, 2019, 2018 and 2017. Cost Value U.S. Treasury Securities . . . . . . . . . . . . . . . $ 4,990 $ 4,998 $ 17,862 $ 17,897 $ — $ — SBA Securities . . . . . . . . . . . . . . . . . . . . . . . 50,126 49,559 49,876 49,054 45,368 45,383 Mortgage-Backed Securities Issued or Guaranteed by U.S. Agencies (MBS): Residential Pass-Through: Guaranteed by GNMA . . . . . . . . . . . . 1,195 1,215 6,357 6,137 7,080 6,940 Issued by FNMA and FHLMC. . . . . . 3,571 3,543 314 314 11,340 11,272 Other Residential Mortgage-Backed Securities . . . . . . . . . . . . . . . . . . . . . . . . 46,464 46,695 25,252 24,539 29,516 28,834 Commercial Mortgage-Backed Securities . . . . . . . . . . . . . . . . . . . . . . . . 12,019 12,213 15,443 14,736 12,121 11,748 All Other Commercial MBS . . . . . . . . . . . 1,063 1,062 1,450 1,450 1,888 1,887 Total MBS . . . . . . . . . . . . . . . . . . . . . . 64,312 64,728 48,816 47,176 61,945 60,681 Municipal Securities . . . . . . . . . . . . . . . . . . 99,441 105,743 117,991 118,133 115,784 118,320 Corporate Securities . . . . . . . . . . . . . . . . . . 49,674 50,176 21,170 21,118 5,052 5,107 Asset-Backed Securities . . . . . . . . . . . . . . . 14,673 14,673 — — — — Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 283,216 $ 289,877 $ 255,715 $ 253,378 $ 228,149 $ 229,491 Value Cost Value Cost December 31, 2019 December 31, 2018 December 31, 2017 Amortized Fair Amortized Fair Amortized Fair

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