Annual Report 2015

Dear Clients and Shareholders,

Founded By, Funded By and Focused on Entrepreneurs….

It is a pleasure to provide Bridgewater Bank’s annual report for 2015. Once again we are pleased to share strong financial results and a continuing story of growth. We sincerely appreciate your involvement in our success and are grateful for the solid partnerships you provide. Shareholders, clients and team members provide the foundation for growth and we look forward to building on this momentum. Financial results continue to exceed expectations and year over year results show noticeable increases. The Bank posted healthy financial returns in 2015, not only completing its tenth consecutive year of profitability, but also the most profitable year to date. With double digit loan, deposit and asset growth, the Bank continues to operate with efficiencies that few banks in the state can rival. Our commitment to maintain low overhead costs, aggressively manage our net interest margin and build a lean, talented team provides Bridgewater Bank with the right foundation to continue fueling future growth. Listed as one of the Top 10 largest Banks in the State of Minnesota (based on assets) 2. Received a capital investment of $15 Million from Castle Creek Capital 3. Signed an acquisition agreement with First National Bank of the Lakes 4. Recognized as one of the Top 150 Places to Work by the Star Tribune With your commitment, the Bank has seen extraordinary success. We intend to continue progressing. Recognized as the premier real estate lender in the Twin Cities, we will continue to build our market niche among seasoned real estate entrepreneurs. As we grow into a larger bank, we also recognize the need to develop new markets. In 2016, we will complete our first acquisition. This transaction will provide the Bank with an opportunity to expand geographically, diversify our loan portfolio and introduce the Bridgewater brand to an expanded consumer audience. With the definitive goal of enhancing shareholder value, the Bank strategically employs resources to guarantee a solid pipeline of potential lending and deposit clients. As a well-capitalized Bank, we know we are properly positioned to continue the current trajectory of growth. As always, I remain appreciative of the efforts of the Bridgewater Bank team: the staff, directors, and shareholders. Together we will continue to drive growth and increase your share value. It is a pleasure to be building your Bank. The Bank achieved several exciting milestones in 2015: 1.

Contents

Letter From Jerry Baack Financial Highlights

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Bridgewater Bank is a full service bank committed to serving the diverse, individual needs of real estate and small business entrepreneurs. The Bank was formed on October 31, 2005 and officially opened for business on November 2, 2005 in Bloomington, Minnesota. Bridgewater Bank’s knowledgeable team has earned the reputation as the premier real estate lender in the Twin Cities by providing responsive service and simple solutions to an extraordinary network of clients.

Jerry Baack Chairman of the Board

Unconventional | Responsive | Dedicated | Growing | Accurate

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