Bridgewater Bank Annual Report

Bridgewater Bancshares, Inc. and Subsidiaries Consolidated Statements of Cash Flows (dollars in thousands)

December 31,

December 31,

December 31,

2018

2017

2016

CASH FLOWS FROM OPERATING ACTIVITIES Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Net Amortization on Securities Available for Sale . . . . . . . . . . . . . . . . . . . . . . . . . Net (Gain) Loss on Sales of Securities Available for Sale . . . . . . . . . . . . . . . . . . . Provision for Loan Losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Depreciation and Amortization of Premises and Equipment . . . . . . . . . . . . . . . . . . Amortization of Other Intangible Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amortization of Subordinated Debt Issuance Costs . . . . . . . . . . . . . . . . . . . . . . . . Net (Gain) Loss on Sale of Foreclosed Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stock-based Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Deferred Income Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Changes in Operating Assets and Liabilities: Accrued Interest Receivable and Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . . Accrued Interest Payable and Other Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . Net Cash Provided by Operating Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CASH FLOWS FROM INVESTING ACTIVITIES (Increase) Decrease in Bank-owned Certificates of Deposit . . . . . . . . . . . . . . . . . . Proceeds from Sales of Securities Available for Sale . . . . . . . . . . . . . . . . . . . . . . . Proceeds from Maturities, Paydowns, Payups and Calls of Securities Available for Sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Purchases of Securities Available for Sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Increase in Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Increase in FHLB Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Purchases of Premises and Equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Proceeds from Sales of Foreclosed Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cash Received, Net of Cash Paid for Acquisition. . . . . . . . . . . . . . . . . . . . . . . . . . Net Cash Used in Investing Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CASH FLOWS FROM FINANCING ACTIVITIES Increase in Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Increase (Decrease) in Federal Funds Purchased . . . . . . . . . . . . . . . . . . . . . . . . . . Proceeds from Notes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Principal Payments on Notes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Proceeds from FHLB Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Principal Payments on FHLB Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Proceeds from Issuance of Subordinated Debentures . . . . . . . . . . . . . . . . . . . . . . . . . . Principal Payments on Subordinated Debentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stock Options Exercised. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Issuance of Common Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Redemption and Cancellation of Common Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Cash Provided by Financing Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . NET CHANGE IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . . . . Cash and Cash Equivalents Beginning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cash and Cash Equivalents Ending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ SUPPLEMENTAL CASH FLOW DISCLOSURE Cash Paid for Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Cash Paid for Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Loans Transferred to Foreclosed Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26,920

$

16,889

$

13,215

3,028

2,779

1,997

125

250

(830)

3,575

4,175

3,250

761 191 103 225 799

694 191

586 104

43

— 30

(356)

368

222

(1,298)

(2,062)

(1,070)

(7,627) 2,606 29,408

(122)

(2,144) (429) 14,931

2,053 24,902

(233)

1,627 36,209

6,753 34,250

24,684

22,965 (78,368) (317,453) (2,467) (3,720)

23,411 (68,453) (346,231)

21,995

(173,340) (176,383) (1,710) (2,191)

(157) (1,235) 4,647

356

115

—

—

24,415

(354,236)

(350,182)

(266,096)

221,584

315,842 (21,000) (2,000) 29,000 (14,000) 24,484 —

195,679 31,000 20,000 (17,042)

(5,000)

—

(2,000) 70,000 (14,000)

— — —

— —

—

(1,500)

106

180

100

58,857

— —

26,046

—

(192)

329,547

332,506

254,091

4,719 23,725 28,444

7,226 16,499 23,725

2,926 13,573 16,499

$

$

19,987 7,865

$

11,334 12,110

$

8,444 10,103 3,601

—

689

See accompanying notes to consolidated financial statements.

80