2021 Annual Report

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

December 31,

December 31,

December 31,

2021

2020

2019

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 on Sales of Securities Available for Sale. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Provision for Loan Losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Depreciation and Amortization of Premises and Equipment . . . . . . . . . . . . . . . . . . . . . . Loss on Sale of Premises and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amortization of Other Intangible Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amortization of Subordinated Debt Issuance Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Gain 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Proceeds from Sale of Premises and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Increase in Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net (Increase) Decrease in FHLB Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Purchases of Premises and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Proceeds from Sales of Foreclosed Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Purchase of Bank-Owned Life Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Cash Used in Investing Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CASH FLOWS FROM FINANCING ACTIVITIES Net Increase in Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Decrease in Federal Funds Purchased. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Principal Payments on Notes Payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Proceeds from FHLB Advances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Principal Payments on FHLB Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Issuance of Preferred Stock, net of Issuance Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Preferred Stock Dividends Paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Issuance of Subordinated Debt, Net of Issuance Costs . . . . . . . . . . . . . . . . . . . . . . . . . . Redemption of Subordinated Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stock Options Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stock Repurchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Shares Repurchased for Tax Withholdings Upon Vesting of Restricted Stock-Based Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Premises and Equipment Transferred to Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Investment Securities Purchased but Not Settled. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

45,687

$

27,194

$

31,403

3,362

2,691 (1,503) 12,750 1,206

2,523

(750)

(516)

5,150 2,369

2,700 1,008

—

2

9

191 441

191 223

191 103 (69) 752 (747)

—

—

2,426 (4,522) (4,064) 3,946 54,236

1,668 (2,590) (5,121) (13,692) 23,019

529

1,641 39,527

984

(206)

651

11,877 44,235

40,862 32,577

42,864 41,118 (98,817)

(109,898)

(170,488)

—

—

1

(492,631)

(411,320)

(247,573)

(215) (777)

2,797

(210)

(24,688)

(15,572)

—

134

1,327

(25,000) (571,425)

—

—

(530,332)

(276,211)

444,601

678,326

262,376 (18,000) (2,000) 42,500 (30,000)

—

—

(11,000)

(2,000) 100,000 (179,000)

—

(15,000) 66,514 (1,171) 29,309 (11,250)

— —

— — — —

48,783

—

724

317

258

(2,301)

(10,334)

(14,959)

(439)

(39)

—

499,987

636,053

240,175

(17,202) 160,675 143,473

128,740 31,935 160,675

3,491 28,444 31,935

$

$

19,135 19,376

$

27,004 10,723

$

29,367 7,625 1,258

134 121

— — —

—

—

14,673

See accompanying notes to consolidated financial statements.

88