Bridgewater Bancshares, Inc._2023 Annual Report

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

Condensed Statements of Income

December 31, December 31, December 31,

2023

2022

2021

(dollars in thousands)

INCOME Dividend Income ................................................ $ InterestIncome ................................................. Other Income ................................................... Total Income .................................................. EXPENSE InterestExpense ................................................ OtherExpenses ................................................. Total Interest Expense .......................................... LOSS BEFORE INCOME TAX BENEFIT AND EQUITY IN UNDISTRIBUTED EARNINGS .................................... Income Tax Benefit .............................................. LOSS BEFORE EQUITY IN UNDISTRIBUTED EARNINGS ......... Equity in Undistributed Earnings .....................................

— $

1,585 $

1,350

3

—

—

118 121

129

117

1,714

1,467

5,126 1,757 6,883

4,890 1,570 6,460

4,691 1,972 6,663

(6,762) 1,894 (4,868)

(4,746) 1,792 (2,954)

(5,196) 1,847 (3,349)

44,828 49,036 NET INCOME ................................................... $ 39,960 $ 53,392 $ 45,687 Condensed Statements of Cash Flows 56,346

December 31, December 31, December 31,

2023

2022

2021

(dollars in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES NetIncome..................................................... $ 39,960 $ 53,392 $ 45,687 Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities: Equity in Undistributed Earnings of Subsidiaries .................... (44,828) (56,346) (49,036) Changes in Other Assets and Liabilities ............................ (738) (193) 634 Net Cash Used by Operating Activities ........................... (5,606) (3,147) (2,715) CASH FLOWS FROM INVESTING ACTIVITIES Investment in Subsidiaries ........................................ — (25,000) (25,000) Proceeds from Bridgewater Risk Management, Inc. Liquidation. . . . . . . . . . 4,143 — — Net Cash Provided (Used) by Investing Activities .................. 4,143 (25,000) (25,000) CASH FLOWS FROM FINANCING ACTIVITIES Principal Payments on Notes Payable ............................... — — (11,000) Proceeds from Notes Payable ...................................... — 13,750 — Proceeds from Issuance of Subordinated Debt ........................ — — 29,309 Redemption of Subordinated Debt .................................. — (13,750) (11,250) Stock Options Exercised .......................................... 963 577 724 Stock Repurchases and Repurchases for Tax Withholding on Equity Awards ........................................................ (5,127) (11,513) (2,740) Issuance of Preferred Stock ....................................... — — 66,514 Preferred Stock Dividends Paid .................................... (4,054) (4,054) (1,171) Net Cash Provided (Used) by Financing Activities .................. (8,218) (14,990) 70,386 NET CHANGE IN CASH AND CASH EQUIVALENTS ............... (9,681) (43,137) 42,671 Cash and Cash Equivalents Beginning ................................. 37,414 80,551 37,880 CashandCashEquivalentsEnding.................................... $ 27,733 $ 37,414 $ 80,551

136