Bridgewater Bank Annual Report

(4) Nonperforming assets are defined as nonaccrual loans plus loans 90 days past due plus foreclosed assets. (5) Ratio excludes the amortization of tax credit investments and represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details. (6) ROA and ROE, excluding a one-time additional expense of $2.0 million related to the revaluation of the deferred tax asset, would have been 1.30% and 14.75%, respectively for the year ended December 31, 2017.

As of and for the year ended December 31,

(dollars in thousands)

2018

2017

2016

2015

2014

Selected Balance Sheet Data Total Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,973,741 $ 1,616,612 $ 1,260,394 $ 928,686 $ 702,175 Total Loans, Gross . . . . . . . . . . . . . . . . . . . . . . . . . 1,664,931 1,347,113 1,000,739 799,497 598,547 Allowance for Loan Losses . . . . . . . . . . . . . . . . . . 20,031 16,502 12,333 10,052 9,489 Securities Available for Sale . . . . . . . . . . . . . . . . . 253,378 229,491 217,083 100,769 70,022 Goodwill and Other Intangibles. . . . . . . . . . . . . . . 3,678 3,869 4,060 — — Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,560,934 1,339,350 1,023,508 761,882 601,373 Federal Funds Purchased . . . . . . . . . . . . . . . . . . . . 18,000 23,000 44,000 13,000 10,000 FHLB Advances and Notes Payable . . . . . . . . . . . 139,000 85,000 72,000 69,042 34,000 Subordinated Debentures, Net of Issuance Costs . 24,630 24,527 — 1,500 1,500 Tangible Common Equity (1) . . . . . . . . . . . . . . . . . 217,320 133,293 111,306 80,178 53,738 Total Shareholders' Equity . . . . . . . . . . . . . . . . . . . 220,998 137,162 115,366 80,178 53,738 Average Total Assets . . . . . . . . . . . . . . . . . . . . . . . 1,777,592 1,451,732 1,098,654 806,625 656,826 Average Common Equity. . . . . . . . . . . . . . . . . . . . 194,083 128,123 102,588 63,981 48,443 Selected Income Statement Data Interest Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 85,226 66,346 $ 50,632 $ 39,193 $ 33,384 Interest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,488 12,173 8,514 6,498 4,585 Net Interest Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,738 54,173 42,118 32,695 28,799 Provision for Loan Losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,575 4,175 3,250 1,500 1,500 Net Interest Income after Provision for Loan Losses . . . . . 61,163 49,998 38,868 31,195 27,299 Noninterest Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,543 2,536 2,567 1,872 975 Noninterest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,562 25,496 20,168 14,817 11,983 Income Before Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . 32,144 27,038 21,267 18,250 16,291 Provision for Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,224 10,149 8,052 7,055 6,365 Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 26,920 $ 16,889 $ 13,215 $ 11,195 $ 9,926 Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS General The following discussion and analysis of our results of operations and financial condition should be read in conjunction with the ‘‘Selected Financial Data’’ and our consolidated financial statements and related notes included elsewhere in this report. In addition to historical information, this discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Certain risks, uncertainties and other factors, including but not limited to those set forth under ‘‘Forward-Looking Statements,’’ ‘‘Risk Factors’’ and elsewhere in this report, may cause actual results to differ materially from those projected in the forward looking statements. We assume no obligation to update any of these forward-looking statements. Readers of our Annual Report on Form 10-K should consider these risks and uncertainties in evaluating forward-looking statements and should not place undue reliance on forward-looking statements. (1) Represents a non-GAAP financial measure. See “Non-GAAP Financial Measures” for further details. As of and for the year ended December 31, (dollars in thousands) 2018 2017 2016 2015 2014

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