Bridgewater Bancshares, Inc. Annual Report

The following table presents the dollar and percentage composition of the loan portfolio by category, at the dates indicated:

December 31, 2019

December 31, 2018

December 31, 2017

December 31, 2016

December 31, 2015

(dollars in thousands) Amount Percent Commercial . . . . . . . . . . $ 276,035 14.5 % $ 260,833 15.7 % $ 217,753 16.2 % $ 132,592 13.2 % $ 103,905 13.0 % Construction and Land Development . . . . . . . 196,776 10.3 210,041 12.6 130,586 9.7 106,070 10.6 116,314 14.6 Real Estate Mortgage: 1 - 4 Family Mortgage . . . . . . . 260,611 13.6 226,773 13.6 195,707 14.5 178,815 17.9 143,232 17.9 Multifamily . . . . . . . 515,014 26.9 407,934 24.5 317,872 23.6 205,250 20.5 168,458 21.1 CRE Owner Occupied. . . . . . . . 66,584 3.5 64,458 3.9 65,909 4.9 62,347 6.2 48,917 6.1 CRE Nonowner Occupied. . . . . . . . 592,545 31.0 490,632 29.5 415,034 30.8 311,835 31.2 215,995 27.0 Total Real Estate Mortgage Loans . . . . . 1,434,754 75.0 1,189,797 71.5 994,522 73.8 758,247 75.8 576,602 72.1 Consumer and Other. . . . 4,473 0.2 4,260 0.2 4,252 0.3 3,830 0.4 2,676 0.3 Total Loans, Gross . . 1,912,038 100.0 % 1,664,931 100.0 % 1,347,113 100.0 % 1,000,739 100.0 % 799,497 100.0 % Allowance for Loan Losses . . . . . . . . . . . . (22,526) (20,031) (16,502) (12,333) (10,052) Net Deferred Loan Fees. . (5,512) (4,515) (4,104) (3,266) (2,686) Total Loans, Net . . . . . . . . $ 1,884,000 $ 1,640,385 $ 1,326,507 $ 985,140 $ 786,759 The Company’s primary focus has been on real estate mortgage lending, which constituted 75.0% of the portfolio as of December 31, 2019. The composition of the portfolio remained consistent with prior periods and although the Company expects continued growth, it does not expect any significant changes in the foreseeable future in the composition of the loan portfolio or in the emphasis on real estate lending. As of December 31, 2019, CRE loans totaled $1.30 billion, consisting of $592.5 million of loans secured by nonowner occupied CRE, $515.0 million of loans secured by multifamily residential properties and $196.8 million of construction and land development loans. CRE loans represented 68.2% of the total gross loan portfolio and 516.6% of the Bank’s total risk-based capital at December 31, 2019. The following table presents time to contractual maturity and sensitivity to interest rate changes for the loan portfolio at December 31, 2019 as of such date: Amount Percent Amount Percent Amount Percent Amount Percent

As of December 31, 2019

Due in One Year More Than One

(dollars in thousands)

or Less

Year to Five Years After Five Years

Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 121,383 $ Construction and Land Development . . . . . . . . . . . . . . . . . . . . . . . . . . 132,221

119,575 $

35,077 11,361 36,788 228,838 37,220 243,413 546,259

53,194

Real Estate Mortgage: 1 - 4 Family Mortgage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Multifamily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CRE Owner Occupied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CRE Nonowner Occupied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Real Estate Mortgage Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Consumer and Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

53,707 117,406 114,533 289,724 4,078

170,116 168,770 25,286 234,599 598,771

1,589

2,420

464

Total Loans, Gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 544,917 $ Interest Rate Sensitivity: Fixed Interest Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 184,370 $ Floating or Adjustable Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360,547 Total Loans, Gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 544,917 $

773,960 $

593,161

545,855 $

197,151 396,010 593,161

228,105

773,960 $

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