Bridgewater Bancshares, Inc._2023 Annual Report

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

Accruing Interest 30-89 Days

90 Days or

Nonaccrual Nonaccrual

(dollars in thousands)

Current

Past Due More Past Due with ACL without ACL

Total

December 31, 2022 Commercial ...................... $ 436,323 $ Construction and Land Development 295,448 1-4 Family Construction ............ 70,242

70 $

— $

— $

— $ 436,393

— —

— —

— —

106 —

295,554 70,242

Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage........................ 1stREM-1-4Family.............. LOCs and 2nd REM - Rentals . . . . . . . 1stREM-Rentals................. Multifamily . . . . . . . . . . . . . . . . . . . . . . CRE Owner Occupied ............. CRE Nonowner Occupied .......... Consumer and Other ..............

36,875 50,945 27,985 239,553 1,306,738 149,372 947,008

— — — — — — —

— — — — — — — —

— — — — — — — —

— — — — — — —

36,875 50,945 27,985 239,669 1,306,738 149,905 947,008

116

533

8,132

8,132

Totals.......................... $3,568,621 $ 186 $ 639 $ 3,569,446 The Company aggregates loans into credit quality indicators based on relevant information about the ability of borrowers to service their debt by using internal reviews in which management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate, and the fair values of collateral securing the loans. The Company analyzes all loans individually to assign a risk rating, grouped into five major categories defined as follows: Pass : A pass loan is a credit with no known or existing potential weaknesses deserving of management’s close attention. Watch : Loans classified as watch have a potential weakness that deserves management’s close attention. If left uncorrected, this potential weakness may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date. Watch loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Substandard : Loans classified as substandard are not adequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. Well defined weaknesses include a borrower’s lack of marketability, inadequate cash flow or collateral support, failure to complete construction on time, or the failure to fulfill economic expectations. They are characterized by the distinct possibility that the Company will sustain loss if the deficiencies are not corrected. Doubtful : Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loss : Loans classified as loss are considered uncollectible and charged-off immediately. — $ — $

105