Bridgewater Bancshares, Inc. Annual Report

The Company believes these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, we acknowledge that our non-GAAP financial measures have a number of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies use. The following reconciliation table provides a more detailed analysis of these non-GAAP financial measures:

As of and for the year ended December 31,

(dollars in thousands, except share data)

2019

2018

2017

2016

2015

Efficiency Ratio Noninterest Expense . . . . . . . . . . . . . . . . . . . . . . $ 36,932 $ 31,562 $ 25,496 $ 20,168 $ 14,817 Less: Amortization of Intangible Assets. . . . . . . (191) (191) (191) (104) — Adjusted Noninterest Expense . . . . . . . . . . . . $ 36,741 $ 31,371 $ 25,305 $ 20,064 $ 14,817 Net Interest Income . . . . . . . . . . . . . . . . . . . . . . . $ 74,132 $ 64,738 $ 54,173 $ 42,118 $ 32,695 Noninterest Income . . . . . . . . . . . . . . . . . . . . . . . 3,826 2,543 2,536 2,567 1,872 Less: (Gain) Loss on Sales of Securities. . . . . . . (516) 125 250 (830) (574) Adjusted Operating Revenue . . . . . . . . . . . . . $ 77,442 $ 67,406 $ 56,959 $ 43,855 $ 33,993 Efficiency Ratio . . . . . . . . . . . . . . . . . . . . . . . 47.4 % 46.5 % 44.4 % 45.8 % 43.6 % Adjusted Efficiency Ratio Noninterest Expense . . . . . . . . . . . . . . . . . . . . . . $ 36,932 $ 31,562 $ 25,496 $ 20,168 $ 14,817 Less: Amortization of Tax Credit Investments. . (3,225) (3,293) (1,916) — — Less: Amortization of Intangible Assets. . . . . . . (191) (191) (191) (104) — Adjusted Noninterest Expense . . . . . . . . . . . . $ 33,516 $ 28,078 $ 23,389 $ 20,064 $ 14,817 Net Interest Income . . . . . . . . . . . . . . . . . . . . . . . $ 74,132 $ 64,738 $ 54,173 $ 42,118 $ 32,695 Noninterest Income . . . . . . . . . . . . . . . . . . . . . . . 3,826 2,543 2,536 2,567 1,872 Less: (Gain) Loss on Sales of Securities. . . . . . . (516) 125 250 (830) (574) Adjusted Operating Revenue . . . . . . . . . . . . . $ 77,442 $ 67,406 $ 56,959 $ 43,855 $ 33,993 Adjusted Efficiency Ratio . . . . . . . . . . . . . . . . 43.3 % 41.7 % 41.1 % 45.8 % 43.6 % Tangible Common Equity and Tangible Common Equity/Tangible Assets Common Equity . . . . . . . . . . . . . . . . . . . . . . . . . $ 244,794 $ 220,998 $ 137,162 $ 115,366 $ 80,178 Less: Intangible Assets . . . . . . . . . . . . . . . . . . . . (3,487) (3,678) (3,869) (4,060) — Tangible Common Equity . . . . . . . . . . . . . . . . 241,307 217,320 133,293 111,306 80,178 Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,268,830 1,973,741 1,616,612 1,260,394 928,686 Less: Intangible Assets . . . . . . . . . . . . . . . . . . . . (3,487) (3,678) (3,869) (4,060) — Tangible Assets . . . . . . . . . . . . . . . . . . . . . . . . $ 2,265,343 $ 1,970,063 $ 1,612,743 $ 1,256,334 $ 928,686 Tangible Common Equity/Tangible Assets . . 10.65 % 11.03 % 8.26 % 8.86 % 8.63 % Tangible Book Value Per Share Book Value Per Common Share . . . . . . . . . . . . . $ 8.45 $ 7.34 $ 5.56 $ 4.69 $ 4.05 Less: Effects of Intangible Assets. . . . . . . . . . . . (0.12) (0.12) (0.16) (0.17) — Tangible Book Value Per Common Share . . . $ 8.33 $ 7.22 $ 5.40 $ 4.52 $ 4.05 Average Tangible Common Equity Average Common Equity . . . . . . . . . . . . . . . . . . $ 232,539 $ 194,083 $ 128,123 $ 102,588 $ 63,981 Less: Effects of Average Intangible Assets . . . . (3,582) (3,772) (3,956) (2,701) — Average Tangible Common Equity . . . . . . . . $ 228,957 $ 190,311 $ 124,167 $ 99,887 $ 63,981

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