Bridgewater Bancshares, Inc._2023 Annual Report

Financed by Bridgewater Bank

cline. In the meantime, we remain focused on gathering core deposits to support our future growth.

Continue to Gain Loan and Deposit Market Share

In 2023, Bridgewater began an initiative to ex pand our C&I capabilities via certain verticals within existing networking channels. In 2024, we will look to build on these in areas such as women business leaders through our Bridge watHER network, as well as businesses run ning on the Entrepreneurial Operating System (EOS). On the commercial real estate front, we are looking to leverage our expertise by ex panding lending in our high-quality affordable housing niche. Demand is high for affordable housing properties in the Twin Cities, driven by a shortage of single-family housing. In addition to these organic growth opportunities, we are continuing to review and assess potential M&A opportunities to supplement growth and en hance our overall business model. We are also taking steps to strategically ex pand our branch footprint in the Twin Cities metro area. In 2023, we reaffirmed our commit ment to downtown Minneapolis by relocating and expanding our downtown branch. We also announced plans to expand our east metro presence by building a de novo branch in Lake Elmo, Minnesota. Operating with a high level of efficiency has always been a strength of Bridgewater, due in part to our branch-light model and com mercial real estate-focused lending approach. We expect this to continue in 2024 as we have challenged all functional leaders across the organization to identify opportunities to fur ther improve efficiencies within their individual groups. It is also important that we continue to make investments that position us for longer term growth. In 2024, we plan to implement key technology initiatives, including the launch of a new CRM platform and an upgraded retail and small business online banking solution, while continuing to optimize the investments we have made in recent years. Generate Incremental Operational Efficiencies While Investing in the Business

In 2023, Bridgewater Bank helped finance this 81-unit building located in Bloomington, MN, providing a much needed affordable housing option for the community.

Scale the Enterprise Risk Management (ERM) Function and Monitor Asset Quality Risks

Bridgewater has made significant investments in its ERM function over the past few years. Continuing to scale our ERM program will be important to support the future growth of the bank. This includes areas such as compliance, information security and cybersecurity, and credit risk. We will also continue to actively monitor our loan portfolio for signs of credit weakness in the current environment. Proac tive covenant testing initiatives are proving to be very beneficial for both Bridgewater and our clients as we assess and address repricing risk on maturing loans. At Bridgewater, we have a strong and proven business model with a dedicated team continu ing to deliver results every day. The Twin Cities remains a resilient market with plentiful growth opportunities, especially given our strong brand and broad network. I’m proud of the accomplish ments we have made in 2023 and am looking for ward to what is ahead.

Jerry Baack Chairman, Chief Executive Officer and President

5