Bridgewater Bancshares, Inc._2023 Annual Report

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

Note 11: Federal Home Loan Bank Advances and Other Borrowings Federal Home Loan Bank Advances. The Company has entered into an Advances, Pledge, and Security Agreement with the FHLB whereby specific mortgage loans of the Bank’s with principal balances of $1.45 billion and $1.20 billion at December 31, 2023 and 2022, respectively, were pledged to the FHLB as collateral. FHLB advances are also secured with FHLB stock owned by the Company. Total remaining available capacity under the agreement was $498.7 million and $390.9 million at December 31, 2023 and 2022, respectively. The following table presents FHLB advances, by maturity, at December 31, 2023 and 2022:

December 31, 2023

December 31, 2022

Weighted Average

Weighted Average

Total

Total

Rate

Outstanding

Rate

Outstanding

(dollars in thousands)

Less than 1 Year .......................... 1 to 2 Years .............................. 2 to 3 Years .............................. 3 to 4 Years .............................. 4 to 5 Years .............................. Totals .................................

5.31 % $ 233,000

4.30 % $ 83,000

4.31 3.45 3.94 4.01

25,000 21,500 17,500 22,500

1.05 1.22 0.78

5,000 5,000 4,000

—

—

$ 319,500

$ 97,000

Federal Reserve Discount Window. At December 31, 2023 and 2022, the Company had the ability to draw additional borrowings of $979.4 million and $157.8 million, respectively, from the Federal Reserve Bank of Minneapolis. The ability to draw borrowings was based on loan collateral pledged with principal balances of $1.08 billion and investment securities collateral pledged with fair value of $170.7 million as of December 31, 2023, subject to the approval from the Board of Governors of the Federal Reserve System. As of December 31, 2022, the ability to draw borrowings was based on loan collateral pledged with principal balances of $225.3 million. There were no federal reserve borrowings outstanding as of December 31, 2023 and 2022. Federal Funds Purchased. Federal funds purchased mature one business day from the transaction date. There were $-0- federal funds purchased outstanding as of December 31, 2023 and $287.0 million federal funds purchased outstanding as of December 31, 2022. Line of Credit. The Company has a Loan and Security Agreement and related revolving note with an unaffiliated financial institution that is secured by 100% of the issued and outstanding stock of the Bank. The note contains customary representations, warranties, and covenants, including certain financial covenants and capital ratio requirements. As of December 31, 2023, the Company believes it was in compliance with all such covenants and capital ratio requirements. The following table presents the revolving line of credit at December 31, 2023 and 2022:

Total Debt Outstanding

Total Debt Outstanding

Interest

Name

Maturity Date

December 31, 2023 December 31, 2022

Rate

Coupon Structure

Revolving Credit Facility (1) . . . September 1, 2024 $

13,750

13,750

8.50 % Variable with Floor (2)

(1) On September 1, 2022, the Company entered into a second amendment to the agreement which increased the maximum principal amount of the Company’s revolving line of credit from $25.0 million to $40.0 million and extended the maturity date from February 28, 2023 to September 1, 2024. (2) The variable interest rate is equal to the greater of the Wall Street Journal Prime Rate in effect or a floor rate of 3.85%.

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