Bridgewater Bank Annual Report

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

using the treasury stock method, which assumes the stock options were exercised and the hypothetical proceeds from the exercise were used by the Company to purchase common stock at the average market price during the period. The following table presents the numerators and denominators for basic and diluted earnings per share computations for the years ended December 31, 2018, 2017 and 2016: 2016 Net Income Available to Common Shareholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 26,920 $ 16,889 $ 13,215 Weighted Average Common Stock Outstanding: Weighted Average Common Stock Outstanding (Basic) . . . . . . . . . . . . . . . . . . . . . . 29,001,393 24,604,464 22,294,837 Stock Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 434,821 413,226 336,904 Weighted Average Common Stock Outstanding (Dilutive) . . . . . . . . . . . . . . . . . . . . 29,436,214 25,017,690 22,631,741 Year Ended December 31, 2018 2017

Basic Earnings per Common Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Diluted Earnings per Common Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0.93 $

0.69 $

0.59 0.58

0.91

0.68

Note 3: Bank-Owned Certificates of Deposit

Certificates of deposit in other financial institutions by maturity are as follows:

2018

2017

Certificates of Deposit at Cost Maturing in: One Year or Less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,586 $ 992 After One Year Through Five Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,719 2,080 $ 3,305 $ 3,072

Note 4: Securities The following tables present the amortized cost and estimated fair value of securities with gross unrealized gains and losses at December 31, 2018 and 2017:

December 31, 2018 Gross Gross Amortized Unrealized Unrealized Cost

Gains Losses Fair Value

Securities Available for Sale: U.S. Treasury Securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 17,862 $ 54 $ (19) $ 17,897 Municipal Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117,991 1,257 (1,115) 118,133 Mortgage-Backed Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,816 52 (1,692) 47,176 Corporate Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,170 72 (124) 21,118 SBA Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,876 13 (835) 49,054 Total Securities Available for Sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 255,715 $ 1,448 $ (3,785) $ 253,378

93