Bridgewater Bancshares, Inc._2023 Annual Report

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

Note 9: Deposits

The following table presents the composition of deposits at December 31, 2023 and 2022:

December 31,

(dollars in thousands) 2022 TransactionDeposits...................................... $1,449,765 $1,336,264 Savings and Money Market Deposits ........................ 935,091 1,031,873 Time Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,651 272,253 BrokeredDeposits........................................ 1,024,441 776,153 Totals................................................. $3,709,948 $3,416,543 2023

Brokered deposits contained brokered transaction and money market accounts of $174.0 million and $184.3 million as of December 31, 2023 and 2022, respectively. The following table presents the scheduled maturities of brokered and customer time deposits at December 31, 2023: (dollars in thousands) 2023 Less than 1 Year ..................................................... $ 337,988 1 to 2 Years ......................................................... 277,949 2 to 3 Years ......................................................... 288,862 3 to 4 Years ......................................................... 76,411 4 to 5 Years ......................................................... 124,435 Greaterthan5Years.................................................. 45,465 Totals ............................................................ $1,151,110 The aggregate amount of time deposits greater than $250,000 was approximately $138.4 million and $92.3 million at December 31, 2023 and 2022, respectively. Note 10: Derivative Instruments and Hedging Activities The Company uses derivative financial instruments, which consist of interest rate swaps and interest rate caps, to assist in its interest rate risk management. The notional amount does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual agreements. Derivative financial instruments are reported at fair value in other assets or other liabilities. The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a hedging relationship. For derivatives not designated as hedges, the gain or loss is recognized in current earnings. Non-hedge Derivatives The Company enters into interest rate swaps to facilitate client transactions and meet their financing needs. Upon entering into these instruments to meet client needs, the Company enters into offsetting positions with large U.S. financial institutions in order to minimize the risk to the Company. These swaps are derivatives, but are not designated as hedging instruments. Interest rate swap contracts involve the risk of dealing with counterparties and their ability to meet contractual terms. When the fair value of a derivative instrument contract is positive, this generally indicates that the counter party December 31,

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