Bridgewater Bancshares, Inc._2023 Annual Report

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

2022-03 will become effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the provisions of the amendments and the impact on its future consolidated statements. In October 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. This ASU was issued to clarify or improve disclosure and presentation requirements of a variety of topics, which will allow users to more easily compare entities subject to the SEC's existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the FASB accounting standard codification with the SEC's regulations. The ASU will become effective on the earlier of the date on which the SEC removes its disclosure requirements for the related disclosure or June 30, 2027. Early adoption is not permitted. The Company is currently evaluating the provisions of the amendments and the impact on its future consolidated statements. In March 2023, the FASB issued ASU No. 2023-01, Leases (Topic 842): Common Control Arrangements . The FASB issued guidance clarifies the accounting for leasehold improvements associated with common control leases, by requiring that leasehold improvements associated with common control leases be amortized by the lessee over the useful life of the leasehold improvements to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset through a lease. Additionally, leasehold improvements associated with common control leases should be accounted for as a transfer between entities under common control through an adjustment to equity if, and when, the lessee no longer controls the use of the underlying asset. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2023 and are not expected to have a material impact on the Company’s consolidated financial statements. Subsequent Events Subsequent events have been evaluated through March 7, 2024, which is the date the consolidated financial statements were available to be issued. Note 2: Earnings Per Share Basic earnings per common share are computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share are calculated by dividing net income available to common shareholders by the weighted average number of common shares adjusted for the dilutive effect of stock compensation. For the years ended December 31, 2023, 2022 and 2021, 1,096,472, 410,760, and 222,107, respectively, of stock options, restricted stock awards and restricted stock units were excluded from the calculation because they were deemed to be antidilutive. The following table presents the numerators and denominators for basic and diluted earnings per share computations for the years ended December 31, 2023, 2022 and 2021: 2021 Net Income Available to Common Shareholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 35,906 $ 49,338 $ 44,516 Weighted Average Common Stock Outstanding: Weighted Average Common Stock Outstanding (Basic) . . . . . . . . . . . . . . . . . . . . . . 27,857,420 27,758,336 28,027,454 DilutiveEffectofStockCompensation ................................... 458,167 909,841 940,832 Weighted Average Common Stock Outstanding (Dilutive) . . . . . . . . . . . . . . . . . . . . 28,315,587 28,668,177 28,968,286 Year Ended December 31, (dollars in thousands, except per share data) 2023 2022

BasicEarningsperCommonShare........................................ $ DilutedEarningsperCommonShare ......................................

1.29 $

1.78 $

1.59 1.54

1.27

1.72

100