Bridgewater Bank Annual Report

Bridgewater Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (dollars in thousands, except share data)

The following table presents the activity in the allowance for loan losses, by segment, for the years ended December 31, 2018, 2017 and 2016:

Construction

CRE

CRE

and Land 1-4 Family Owner Non-owner Consumer Commercial Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total

Balance at January 1, 2016 . . . . . . . . . . . . . . . . . Provision for Loan Losses. . Loans Charged-off . . . . . . . Recoveries of Loans . . . . . . Balance at December 31, 2016 . . . . . . . . . . . . . . . . . Provision for Loan Losses. . Loans Charged-off . . . . . . . Recoveries of Loans . . . . . . Balance at December 31, 2017 . . . . . . . . . . . . . . . . . Provision for Loan Losses. . Loans Charged-off . . . . . . . Recoveries of Loans . . . . . . Balance at December 31, 2018 . . . . . . . . . . . . . . . . .

$

1,349 $

1,708 $ 1,765 $

871 $ 1,019 $ 2,452 $

36 $

852 $ 10,052 248 3,250 — (1,114)

(28) (107)

(89) (248)

614

697

264

1,484

60

(1)

— (123)

(613)

(22)

101

8

32

—

—

—

4

—

145

$

1,315 $

1,379 $ 2,410 $

1,568 $ 1,160 $ 3,323

78 $

1,100 $ 12,333 (515) 4,175 — (177)

1,116

488

(230)

1,602 (204)

1,875

43

(1)

— 25

—

— —

— —

(111)

(65)

5

137

—

4

—

171

$

2,435 $

1,892 $ 2,317 $

3,170 $ 956 $ 5,087 $

60 $

585 $ 16,502 111 3,575 — (421)

448

632

242

1,474 (148)

785

31

(10)

(358)

(21)

— —

— —

— —

(32)

25

285

59

6

—

375

$

2,898 $

2,451 $ 2,597 $

4,644 $ 808 $ 5,872 $

65 $

696 $ 20,031

The following tables present the balance in the allowance for loan losses and the recorded investment in loans, by segment, based on impairment method as of December 31, 2018 and 2017:

Construction

CRE

CRE

and Land 1--4 Family

Owner Non-owner Consumer

Allowance for Loan Losses at December 31, 2018 Individually Evaluated for Impairment. . . . . . . $

Commercial Development Mortgage Multifamily Occupied Occupied and Other Unallocated

Total

8 $

— $

17 $

— $ 22 $ — $ — $

— $ 47

Collectively Evaluated for Impairment. . . . . . . 2,890 2,451 2,580 4,644 786 5,872 65 696 19,984 Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,898 $ 2,451 $ 2,597 $ 4,644 $ 808 $ 5,872 $ 65 $ 696 $ 20,031

Allowance for Loan Losses at December 31, 2017 Individually Evaluated for Impairment. . . . . . . $

14 $

— $

57 $

14 $ 24 $ — $ — $

— $ 109

Collectively Evaluated for Impairment. . . . . . . 2,421 1,892 2,260 3,156 932 5,087 60 585 16,393 Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,435 $ 1,892 $ 2,317 $ 3,170 $ 956 $ 5,087 $ 60 $ 585 $ 16,502

Construction

CRE

CRE

and Land 1--4 Family

Owner

Non-owner Consumer

Loans at December 31, 2018

Commercial Development Mortgage Multifamily Occupied Occupied and Other 8 $ 198 $ 1,676 $ — $ 365 $ — $ 58 $ 2,305 260,825 209,843 225,097 407,934 64,093 490,632 4,202 1,662,626 $ 260,833 $ 210,041 $ 226,773 $ 407,934 $ 64,458 $ 490,632 $ 4,260 $ 1,664,931 Total

Individually Evaluated for Impairment . . . . . . $ Collectively Evaluated for Impairment . . . . . . Totals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Loans at December 31, 2017 Individually Evaluated for Impairment . . . . . . Collectively Evaluated for Impairment . . . . . . Totals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 14 $ 583 $ 1,693 $ 66 $ 2,165 $ — $ 75 $ 4,596 217,739 130,003 194,014 317,806 63,744 415,034 4,177 1,342,517 $ 217,753 $ 130,586 $ 195,707 $ 317,872 $ 65,909 $ 415,034 $ 4,252 $ 1,347,113

96