Bridgewater Bank Annual Report

The holders of our debt obligations and preferred stock, if any, will have priority over our common stock with respect to payment in the event of liquidation, dissolution or winding up and with respect to the payment of interest and dividends. In any liquidation, dissolution or winding up of the Company, our common stock would rank below all claims of debt holders against us and claims of all of our outstanding shares of preferred stock. As of December 31, 2018, we had $15.0 million of senior indebtedness and $25.0 million of subordinated debentures outstanding. We do not currently have any shares of preferred stock outstanding. As a result, holders of our common stock will not be entitled to receive any payment or other distribution of assets upon the liquidation, dissolution or winding up of the Company until after all of our obligations to our debt holders have been satisfied and holders of senior equity securities, including preferred shares, if any, have received any payment or distribution due to them. We cannot guarantee that our stock repurchase program will be fully implemented or that it will enhance long-term shareholder value. In January 2019, the Company’s board of directors approved a stock repurchase program, which authorizes the Company to repurchase up to $15 million of its common stock, subject to certain limitations and conditions. The repurchase program was effective immediately and will continue for a period of 24 months. The repurchase program does not obligate the Company to repurchase any shares of its common stock, and there is no assurance that the Company will do so or that the Company will repurchase shares at favorable prices. The repurchase program may be suspended or terminated at any time and, even if fully implemented, the program may not enhance long-term shareholder value. ITEM 1.B. UNRESOLVED STAFF COMMENTS None. ITEM 2. PROPERTIES Our corporate headquarters is located at 3800 American Boulevard West, Suite 100, Bloomington, Minnesota 55431. In addition to our corporate headquarters, we operate six branch offices located in the Twin Cities MSA. We own three of our branch offices located in Orono, St. Louis Park and Minneapolis (Hennepin Avenue), and we lease our headquarters space, and the remainder of our retail branch offices. Additional information regarding our locations is set forth below. 3800 American Boulevard West, Various Suites, Bloomington, Minnesota 55431 . . . . . . . . . . . . . . . . . . . . . Leased 18,510 Term expires September 2020; renewable at the Bank's option 21500 Highway 7, Greenwood, Minnesota 55331 . . . . . . . . . Leased 5,640 Term expires August 2021; renewable at the Bank's option Northstar Center West, 625 Marquette Avenue, Suite #W0100, Minneapolis, Minnesota 55402 . . . . . . . . . . . . . . Leased 1,771 Term expires June 2022; renewable at the Bank's option 4400 Excelsior Boulevard, St. Louis Park, Minnesota 55416 . Owned 4,057 N/A 2445 Shadywood Road, Orono, Minnesota 55331 . . . . . . . . . Owned 4,100 N/A 3100 Hennepin Avenue, Minneapolis, Minnesota 55408 (1) . . . Owned 4,500 N/A 370 Wabasha Street N., St. Paul, Minnesota 55102. . . . . . . . . Leased 10,820 Term expires January 2029; renewable at the Bank's option (1) Does not include the leased drive-up property located adjacent to the branch. ITEM 3. LEGAL PROCEEDINGS Neither the Company nor any of its subsidiaries is a party, and no property of these entities is subject, to any material pending legal proceedings, other than ordinary routine litigation incidental to the Bank’s business. The Square Branch Locations: Ownership Footage Term

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