Bridgewater Bancshares, Inc._2023 Annual Report

The following table presents a summary of net charge-offs for the periods indicated:

As of and for the year ended December 31,

(dollars in thousands)

2023

2022

2021

2020

2019

Net Charge-offs (Recoveries) Commercial........................ $ 170 $

3

$

(8) $ 339

$

152

—

—

—

—

(1)

Construction and Land Development ... Real Estate Mortgage: 1-4FamilyMortgage............... CRE Owner Occupied .............. Total Real Estate Mortgage Loans ..... ConsumerandOther................. Net Charge-offs (Recoveries) to Average Loans Commercial........................ Construction and Land Development ... Real Estate Mortgage: 1-4FamilyMortgage............... CRE Owner Occupied .............. Total Real Estate Mortgage Loans ..... ConsumerandOther................. Total Net Charge-offs (Recoveries) to AverageLoans.......................

(5)

(288)

(21) (32) (53)

90

27 — 27 27

—

—

(10)

(5)

(288)

80 16

37

9

32

(29) $ 435

$

205

Total Net Charge-offs (Recoveries) . . . . . . $ 202 $ (276) $

0.04 %

0.00 %

0.00 %

0.12 %

0.05 %

0.00

0.00

0.00

0.00

0.00

0.00 0.00 0.00 0.40

(0.09) 0.00 (0.01) 0.12

(0.01) (0.04)

0.03 (0.01)

0.01 0.00 0.00 0.65

0.00 0.45

0.01 0.28

0.01 %

(0.01)%

0.00 %

0.02 %

0.01 %

Gross Loans, End of Period ............ $ 3,724,282 $ 3,569,446 AverageLoans....................... 3,699,252 3,190,712

2,819,472 2,584,857

2,326,428 2,154,420

1,912,038 1,785,937

Allowance to Total Gross Loans ........ 1.18 % The following table presents a summary of the allocation of the allowance for credit losses on loans by loan portfolio segment as of the periods indicated: 1.36 % 1.34 % 1.42 % 1.50 %

December 31,

December 31,

December 31,

December 31,

December 31,

2023

2022

2021

2020

2019

(dollars in thousands)

Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent

Commercial............. $ 5,398

10.7 % $ 6,500

13.5 % $ 6,256

15.6 % $ 5,703

16.4 % $ 3,058

13.6 %

Paycheck Protection Program Construction and Land Development ............ 1-4 Family Construction . . . . Real Estate Mortgage: 1-4 Family Mortgage . . . . . Multifamily............ CRE Owner Occupied . . . . CRE Nonowner Occupied . Total Real Estate Mortgage Loans.................. Consumer and Other. . . . . . . Unallocated .............

NM

NM

1

—

13

—

70

0.2

—

—

2,156

4.3 1.1

3,911

8.1 1.8

3,139

7.9 1.5

1,679

4.8 2.3

1,274

5.7 4.1

558

845

618

812

928

2,651 22,217 1,184 16,225

5.3

4,325 17,459 1,965 12,576

9.0

3,757 12,610 1,495 11,335

9.4

3,972 9,517 1,162 10,991

11.4 27.3 3.3 31.6

2,839 5,824

12.6 25.9 3.5 30.9

44.0 2.3 32.1

36.4 4.1 26.2

31.5 3.7 28.3

792

6,972

42,277

83.7

36,325

75.7

29,197

72.9

25,642

73.6

16,427

72.9

105

0.2 —

151 263

0.3 0.6

147 650

0.5 1.6

203 732

0.6 2.1

85

0.4 3.3

—

754

Total Allowance for Credit Losses................... $50,494

100.0 % $ 47,996

100.0 % $ 40,020

100.0 % $ 34,841

100.0 % $ 22,526

100.0 %

Goodwill and Other Intangible Assets Goodwill was $2.6 million at December 31, 2023 and 2022. Goodwill represents the excess of the consideration paid over the fair value of the net assets acquired, which originated from the acquisition of First National Bank of the Lakes in May of 2016. Goodwill is not amortized but is subject to, at a minimum, an annual test for impairment. Other intangible assets consist of core deposit relationships and favorable lease term intangibles. Total other intangible assets

68