Bridgewater Bank Annual Report

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

The following table presents a summary of the status of the Company’s stock option plans for the years ended December 31, 2018 and 2017:

December 31, 2018

December 31, 2017

Weighted

Weighted Average

Average

Shares Exercise Price

Shares Exercise Price

Outstanding at Beginning of Year . . . . . . 1,721,000 $ Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . 135,000 Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . (37,900) Forfeitures . . . . . . . . . . . . . . . . . . . . . . . . . (11,000) Outstanding at End of Year . . . . . . . . . . . 1,807,100 $

5.68 765,000 $ 12.52 1,046,000 2.78 (90,000)

2.79 7.47 2.01

7.61

—

—

6.24 1,721,000 $

5.68

Options Exercisable at End of Year. . . . . 721,100 $

4.19 419,000 $

2.83

For the years ended December 31, 2018, 2017 and 2016, the Company recognized compensation expense for stock options of $799, $368, and $222, respectively. The following table presents information pertaining to options outstanding at December 31, 2018:

Options Outstanding

Options Exercisable

Number

Remaining

Number

Exercise Price

Outstanding Contractual Life

Exercise Price

Outstanding

$

1.65 2.13 3.00 3.58 7.47

7,500 90,000 490,000 50,000 1,039,600

2.8 Years $ 4.3 Years 5.0 Years 6.0 Years 8.8 Years 9.4 Years 9.7 Years 9.8 Years 9.8 Years 7.5 Years $

1.65 2.13 3.00 3.58 7.47

7,500 90,000 386,000 30,000 207,600

13.22 12.86 12.94 11.59

25,000 45,000 35,000 25,000

13.22 12.86 12.94 11.59

— — — —

Totals

1,807,100

6.24 $

721,100

As of December 31, 2018, there was $2,661 of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the 2017 Plan and 2012 Plan that is expected to be recognized over a period of five years. The following is an analysis of nonvested options to purchase shares of the Company’s stock issued and outstanding for the year ended December 31, 2018:

Weighted Number of Average Grant Shares Date Fair Value

Nonvested Options at December 31, 2017 . . . . . . . . . . . . . . . . . . . . 1,302,000 $ Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135,000 Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (340,000) Forfeited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,000) Nonvested Options at December 31, 2018 . . . . . . . . . . . . . . . . . . . . 1,086,000 $

2.55 3.77 2.29 2.85 2.78

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