2020 Annual Report

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

Condensed Statements of Income

December 31, December 31, December 31, 2020 2019 2018

INCOME Dividend Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Interest Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EXPENSE Interest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Interest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . LOSS BEFORE INCOME TAX BENEFIT AND EQUITY IN UNDISTRIBUTED EARNINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Income Tax Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . LOSS BEFORE EQUITY IN UNDISTRIBUTED EARNINGS . . . . . . . . Equity in Undistributed Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,300 $

1,040 $

1,100

19

27

3

179

158

136

1,498

1,225

1,239

3,547 1,412 4,959

2,056

2,162 1,152 3,314

996

3,052

(3,461)

(1,827)

(2,075)

1,323

776

924

(2,138)

(1,051)

(1,151)

29,332

32,454

28,071

$ 27,194 $ 31,403 $ 26,920

Condensed Statements of Cash Flows

December 31, December 31, December 31, 2020 2019 2018

CASH FLOWS FROM OPERATING ACTIVITIES Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27,194 $ 31,403 $ 26,920 Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities: Equity in Undistributed Earnings of Subsidiaries . . . . . . . . . . . . . . . . . . . (29,332) (32,454) (28,071) Changes in Other Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . 234 311 (368) Net Cash Used by Operating Activities . . . . . . . . . . . . . . . . . . . . . . . . . . (1,904) (740) (1,519) CASH FLOWS FROM INVESTING ACTIVITIES Net (Increase) Decrease in Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 742 (742) — Investment in Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (25,000) — (25,000) Net Cash Used in Investing Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . (24,258) (742) (25,000) CASH FLOWS FROM FINANCING ACTIVITIES Principal Payments on Notes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,000) (2,000) (2,000) Proceeds from Issuance of Subordinated Debt . . . . . . . . . . . . . . . . . . . . . . . 48,783 — — Stock Options Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317 258 106 Stock Repurchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,373) (14,959) — Issuance of Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 58,857 Net Cash Provided (Used) by Financing Activities . . . . . . . . . . . . . . . . . 36,727 (16,701) 56,963 NET CHANGE IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . 10,565 (18,183) 30,444 Cash and Cash Equivalents Beginning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,315 45,498 15,054 Cash and Cash Equivalents Ending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 37,880 $ 27,315 $ 45,498

140