Bridgewater Bancshares, Inc._2023 Annual Report

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

The following tables present the carrying amounts and estimated fair values of financial instruments at December 31, 2023 and 2022:

December 31, 2023 Fair Value Hierarchy

Carrying Amount

Estimated Fair Value

(dollars in thousands)

Level 1

Level 2

Level 3

Financial Assets: CashandDueFromBanks.................... $ 128,562 $128,562 $

— $ — $ 128,562

— — — — — —

604,104 17,097 3,579,583

— — — — —

604,104 17,097 3,589,185

Securities Available for Sale .................. FHLBStock,atCost......................... Loans,Net................................. Accrued Interest Receivable .................. InterestRateCaps........................... Interest Rate Swaps..........................

604,104 17,097 3,667,215

9,602

16,697 18,717 13,872

16,697 18,717 13,872

16,697 18,717 13,872

Financial Liabilities: Deposits................................... $3,709,948 $

— $ 3,709,086 $ — $ 3,709,086

Notes Payable .............................. FHLB Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . SubordinatedDebentures..................... Accrued Interest Payable ..................... Interest Rate Swaps..........................

13,750 319,500 79,288

— — — — —

13,805 319,305 77,557

— — — — —

13,805 319,305 77,557

5,282 8,601

5,282 8,601

5,282 8,601

December 31, 2022 Fair Value Hierarchy

Carrying Amount

Estimated Fair Value

(dollars in thousands)

Level 1

Level 2

Level 3

Financial Assets: CashandDueFromBanks....................... $ Bank-Owned Certificates of Deposit. . . . . . . . . . . . . . . Securities Available for Sale ..................... FHLBStock,atCost............................ Loans,Net.................................... Accrued Interest Receivable ..................... InterestRateCaps.............................. Interest Rate Swaps.............................

87,043 $ 87,043 $

— $ — $

87,043 1,173 548,613 19,606 3,314,190

1,181

—

1,173

— — — — — — — — — — — — —

548,613 19,606 3,512,157

2,580

546,033 19,606 3,314,190

— — — — —

13,479 19,406 18,717

13,479 19,406 18,717

13,479 19,406 18,717

Financial Liabilities: Deposits...................................... $3,416,543 $ Federal Funds Purchased ........................ 287,000 Notes Payable ................................. 13,750 FHLB Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97,000 SubordinatedDebentures........................ 78,905 Accrued Interest Payable ........................ 2,831 Interest Rate Swaps............................. 9,542

— $ 3,390,416 $ — $ 3,390,416

— — — — — —

287,000 13,473 96,061 70,931

287,000 13,473 96,061 70,931

2,831 9,542

2,831

9,542 The following methods and assumptions were used by the Company to estimate fair value of consolidated financial statements not previously discussed. Cash and due from banks – The carrying amount of cash and cash equivalents approximates their fair value.

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