Bridgewater Bancshares, Inc._2023 Annual Report

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

Note 12: Subordinated Debentures The following presents a summary of the Company’s subordinated debentures as of December 31, 2023 and 2022:

Total Debt

Total Debt

First

Outstanding Outstanding December 31, December 31, Interest

Date

Redemption

Maturity

Coupon Structure

Name

Established

Date

Date

2023

2022

Rate

(dollars in thousands) 2030 Notes . . . . . . . . . . . . . . . . . . . June 19, 2020 July 1, 2025 July 1, 2030 2031 Notes . . . . . . . . . . . . . . . . . . . July 8, 2021 July 15, 2026 July 15, 2031

50,000 30,000 80,000

50,000 30,000 80,000 (1,095)

5.25 % Fixed-to-Floating (1) 3.25 % Fixed-to-Floating (2)

Subordinated Debentures

Debt Issuance Costs . . . . . . . . . . . . Subordinated Debentures, Net of Issuance Costs . . . . . . . . . . .

(712)

$

79,288 $

78,905

(1) Migrates to three month term SOFR + 5.13% beginning July 1, 2025 until either the early redemption date or the maturity date. (2) Migrates to three month term SOFR + 2.52% beginning July 15, 2026 until either the early redemption date or the maturity date. Note 13: Related - Party Transactions In the ordinary course of business, the Company has granted loans to executive officers, directors, principal shareholders, and their affiliates (related parties). The following table presents the activity associated with loans made between related parties for the years ended December 31, 2023 and 2022: (dollars in thousands) 2022 Beginning Balance ........................................... $ 27,676 $ 49,964 New Loans and Advances ..................................... 8,587 16,006 Repayments ................................................ (4,423) (38,294) Totals ................................................... $ 31,840 $ 27,676 Deposits from related parties held by the Company at December 31, 2023 and 2022 were $17.9 million and $22.2 million, respectively. The Company has a related party lease which is disclosed in “Note 8 – Leases”. Note 14: Income Taxes The following table presents the allocation of federal and state income taxes between current and deferred portions as of December 31, 2023, 2022 and 2021: 2021 CurrentTaxProvision ................................. $11,886 $19,719 $20,408 Deferred Tax Expense (Benefit) ......................... 676 (1,401) (4,522) Total Income Tax Provision .......................... $12,562 $18,318 $15,886 2023 (dollars in thousands) 2023 2022

117