Bridgewater Bancshares, Inc. Annual Report

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

The following table presents the activity in the allowance for loan losses, by segment, for the years ended December 31, 2019, 2018 and 2017:

Construction

CRE

CRE

and Land 1-4 Family Owner Non-owner Consumer Commercial Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total

Balance at January 1, 2017 . . . . . . . . Provision for Loan Losses. . Loans Charged-off . . . . . . . Recoveries of Loans . . . . . . Balance at December 31, 2017 . . . . . . Provision for Loan Losses. . Loans Charged-off . . . . . . . Recoveries of Loans . . . . . . Balance at December 31, 2018 . . . . . . Provision for Loan Losses. . Loans Charged-off . . . . . . . Recoveries of Loans . . . . . . Balance at December 31, 2019 . . . . . .

$

1,315 $

1,379 $ 2,410 $

1,568 $ 1,160 $ 3,323

78 $

1,100 $ 12,333 (515) 4,175 — (177)

1,116

488

(230)

1,602 (204)

1,875

43

(1)

— 25

—

— —

— —

(111)

(65)

—

4

—

171

5

137

$

2,435 $

1,892 $ 2,317 $

3,170 $ 956 $ 5,087

60 $

585 $ 16,502 111 3,575 — (421)

448

632

242

1,474 (148)

785

31

(10)

(358)

(21)

— —

— —

— —

(32)

6

—

375

25

285

59

$

2,898 $

2,451 $ 2,597 $

4,644 $ 808 $ 5,872 $

65 $

696 $ 20,031 58 2,700 — (388)

312

(250)

269

1,180

(16)

1,100

47

(160)

—

(195)

— —

— —

— —

(33)

6

—

183

8

1

168

$

3,058 $

2,202 $ 2,839 $

5,824 $ 792 $ 6,972 $

85 $

754 $ 22,526

The following tables present the balance in the allowance for loan losses and the recorded investment in loans, by segment, based on impairment method as of December 31, 2019 and 2018:

Construction

CRE

CRE

and Land 1--4 Family

Owner Non-owner Consumer

Allowance for Loan Losses at December 31, 2019 Individually Evaluated for Impairment. . . . . . . $

Commercial Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total

31 $

— $

— $

— $

— $

— $

14 $

— $

45

Collectively Evaluated for Impairment. . . . . . . 3,027 2,202 2,839 5,824 Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,058 $ 2,202 $ 2,839 $ 5,824 $ 792 $ 6,972 $ 792 6,972

71

754 22,481

85 $ 754 $ 22,526

Allowance for Loan Losses at December 31, 2018 Individually Evaluated for Impairment. . . . . . . $

8 $

— $

17 $

— $

22 $

— $

— $

— $

47

Collectively Evaluated for Impairment. . . . . . . 2,890 2,451 2,580 4,644 Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,898 $ 2,451 $ 2,597 $ 4,644 $ 808 $ 5,872 $ 786 5,872

65

696 19,984

65 $ 696 $ 20,031

Construction

CRE

CRE

and Land 1--4 Family

Owner Non-owner Consumer

Loans at December 31, 2019 Total Individually Evaluated for Impairment . . . . . . . . . . $ 273 $ 176 $ 1,059 $ — $ 236 $ — $ 14 $ 1,758 Collectively Evaluated for Impairment . . . . . . . . . . 275,762 196,600 259,552 515,014 66,348 592,545 4,459 1,910,280 Totals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 276,035 $ 196,776 $ 260,611 $ 515,014 $ 66,584 $ 592,545 $ 4,473 $ 1,912,038 Commercial Development Mortgage Multifamily Occupied Occupied and Other

Loans at December 31, 2018 Individually Evaluated for Impairment . . . . . . . . . . $

8 $ 198 $ 1,676 $ — $ 365 $ — $ 58 $ 2,305 Collectively Evaluated for Impairment . . . . . . . . . . 260,825 209,843 225,097 407,934 64,093 490,632 4,202 1,662,626 Totals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 260,833 $ 210,041 $ 226,773 $ 407,934 $ 64,458 $ 490,632 $ 4,260 $ 1,664,931

98