Bridgewater Bancshares, Inc._2023 Annual Report

A Look Back at 2023

In what seemed like the blink of an eye, 2023 changed from a year of continuing momentum to a year of managing through a landscape full of unexpected challenges. When interest rates increase over 500 basis points in less than 18 months and several significant banks fail over night, it is vital to have a plan to address the im mediate implications, create stabilization over the near-term, and position the bank to come out stronger over the longer term as industry condi tions normalize. At Bridgewater, we responded by leveraging our talented teams and deep client relationships, optimizing our balance sheet, con trolling our expenses, reinforcing our asset qual ity and never losing sight of the culture and core values that have made Bridgewater the finest en trepreneurial bank in the Twin Cities. With rising interest rates coupled with increased competition and concerns over the safety and soundness of the broader financial system, de posit retention became a key focus for banks in 2023. For Bridgewater, this meant leveraging the client relationships our teams have spent years building. By proactively engaging with our cli ents, we were able to provide comfort around the safety of their deposits. Whether it was educat ing clients about deposit insurance, taking action to ensure larger balances were fully insured, high lighting our strong capital and liquidity position, or just letting them know they had a banker look ing out for their best interests, we were able to demonstrate the true value of a relationship-fo cused community bank.

Bridgewater Bancshares, Inc. entered 2023 po sitioned to continue building on the momen tum of our highly efficient business model, ro bust balance sheet growth, superb asset quality, compounding tangible book value and unique, award-winning culture. However, as we celebrat ed the five-year anniversary of our initial public offering in March, the banking landscape was being turned upside-down due to a series of un precedented events. Thanks to the leadership of our Board of Directors and Strategic Leadership Team and the hard work of our talented team members, we were able to respond and adapt to a challenging environment in 2023, while posi tioning the Bank for 2024 and beyond. FELLOW SHAREHOLDERS, In 2023, Bridgewater Bank opened its enhanced Downtown Minneapolis branch at 60 South Sixth. Nestled within the skyway, blocks from our pre vious location, this 3,200-square-foot branch re flects our growth and commitment to downtown’s success. Our new branch is strategically located to support local clients, entrepreneurs and the broader business community, showcasing our con fidence in the city’s future. Downtown Minneapolis Branch

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