Bridgewater Bancshares : Announces Record Fourth Quarter 2021 Net Income of $12.5 Million, $0.39 Diluted Earnings Per Common Share - Form 8-K

Published: 2022-01-27 07:19:19 ET BWB

Bridgewater Bancshares, Inc. Announces Record Fourth Quarter 2021 Net Income of $12.5 Million, $0.39 Diluted Earnings Per Common Share

Bridgewater Bancshares, Inc. (Nasdaq: BWB) (the Company), the parent company of Bridgewater Bank (the Bank), today announced net income of $12.5 million for the fourth quarter of 2021, an 8.7% increase over net income of $11.5 million for the third quarter of 2021, and a 151.3% increase over net income of $5.0 million for the fourth quarter of 2020. Net income per diluted common share for the fourth quarter of 2021 was $0.39, a 1.2% decrease compared to $0.40 per diluted common share for the third quarter of 2021, and a 126.1% increase compared to $0.17 per diluted common share for the same period in 2020.

"Bridgewater reported a fourth consecutive quarter of record net income driven by the continuation of many of the same trends and momentum we created throughout 2021," said Chairman, Chief Executive Officer, and President, Jerry Baack. "During the quarter, we continued to generate strong loan production and gather high-quality deposits across the Twin Cities market, leading to robust balance sheet growth. This level of consistent growth in today's environment, along with a business model operating with a low 40% adjusted efficiency ratio, stable net interest margin and strong asset quality, remain key differentiators for us. As we look ahead to 2022, we expect to continue to leverage the ongoing M&A-related market disruption and our strengthening brand to drive additional balance sheet and revenue growth; make proactive investments in business scalability, automation and back-office functions; and maintain our highly efficient operating strategy. With a hard-working team of talented professionals supporting our clients every day and a strong capital and liquidity position, we are poised to build on our momentum into 2022 and beyond."

The Company today also announced that its Board of Directors declared a quarterly cash dividend on its 5.875% Non-Cumulative Perpetual Preferred Stock, Series A ("Series A Preferred Stock"). The quarterly cash dividend of $36.72 per share, equivalent to $0.3672 per depositary share, each representing a 1/100th interest in a share of the Series A Preferred Stock (Nasdaq: BWBBP), is payable on March 1, 2022 to shareholders of record of the Series A Preferred Stock at the close of business on February 15, 2022.

Fourth Quarter 2021 Financial Results

Diluted

Nonperforming

Adjusted

ROA

PPNR ROA (1)

ROE

earnings per share

assets to total assets

efficiency ratio (1)

1.46

2.11

13.27

0.39

0.02

40.3

Fourth Quarter 2021 Highlights

Page 1 of 19

Annual 2021 Highlights

Page 2 of 19

Key Financial Measures

As of and for the Three Months Ended

As of and for the Year Ended

December 31,

September 30,

December 31,

2021

2020

2021

2020

Per Common Share Data

Basic Earnings Per Share

0.41

0.18

1.59

0.95

Diluted Earnings Per Share

0.39

0.40

0.17

1.54

0.93

Adjusted Diluted Earnings Per Share (1)

0.39

0.41

0.32

1.55

1.12

Book Value Per Share

11.09

10.73

9.43

Tangible Book Value Per Share (1)

10.98

10.62

9.31

Basic Weighted Average Shares Outstanding

28,004,334

28,047,280

28,179,768

28,027,454

28,582,064

Diluted Weighted Average Shares Outstanding

29,038,785

29,110,547

28,823,384

28,968,286

29,170,220

Shares Outstanding at Period End

28,206,566

28,066,822

28,143,493

Selected Performance Ratios

Return on Average Assets (Annualized)

1.46

1.37

0.70

1.43

1.04

Pre-Provision Net Revenue Return on Average Assets (Annualized) (1)

2.11

2.09

2.30

2.10

2.09

Return on Average Shareholders' Equity (Annualized)

13.27

13.81

7.45

14.45

10.51

Return on Average Tangible Common Equity (Annualized) (1)

14.78

15.47

7.55

15.45

10.65

Yield on Interest Earning Assets

4.06

4.14

4.46

4.16

4.51

Yield on Total Loans, Gross

4.49

4.65

4.89

4.60

4.90

Cost of Interest Bearing Liabilities

0.86

0.88

1.24

0.93

1.53

Cost of Total Deposits

0.45

0.48

0.69

0.51

0.93

Net Interest Margin (2)

3.51

3.54

3.61

3.54

3.46

Core Net Interest Margin (1)(2)

3.25

3.22

3.29

3.28

3.25

Efficiency Ratio (1)

40.8

43.9

59.0

42.0

49.0

Adjusted Efficiency Ratio (1)

40.3

41.5

36.6

41.0

40.5

Noninterest Expense to Average Assets (Annualized)

1.45

1.58

2.16

1.51

1.73

Adjusted Noninterest Expense to Average Assets (Annualized) (1)

1.43

1.49

1.34

1.47

1.44

Loan to Deposit Ratio

95.7

95.0

93.0

Core Deposits to Total Deposits (3)

85.4

83.3

78.1

Tangible Common Equity to Tangible Assets (1)

8.91

8.81

8.96

Capital Ratios (Bank Only) (4)

Tier 1 Leverage Ratio

11.09

10.96

10.89

Common Equity Tier 1 Risk-based Capital Ratio

11.69

11.88

12.12

Tier 1 Risk-based Capital Ratio

11.69

11.88

12.12

Total Risk-based Capital Ratio

12.94

13.13

13.37

Capital Ratios (Consolidated) (4)

Tier 1 Leverage Ratio

10.82

10.70

9.28

Common Equity Tier 1 Risk-based Capital Ratio

9.36

9.47

10.35

Tier 1 Risk-based Capital Ratio

11.43

11.65

10.35

Total Risk-based Capital Ratio

15.55

15.93

14.58

Page 3 of 19

Selected Financial Data

December 31,

September 30,

June 30,

March 31,

December 31,

(dollars in thousands)

2021

2020

Selected Balance Sheet Data

Total Assets

3,477,659

3,389,125

3,162,612

3,072,359

2,927,345

Total Loans, Gross

2,819,472

2,712,012

2,594,186

2,426,123

2,326,428

Allowance for Loan Losses

40,020

38,901

37,591

35,987

34,841

Goodwill and Other Intangibles

3,105

3,153

3,200

3,248

3,296

Deposits

2,946,237

2,854,157

2,720,906

2,638,654

2,501,636

Tangible Common Equity (1)

309,653

298,135

287,630

275,923

262,109

Total Shareholders' Equity

379,272

367,803

290,830

279,171

265,405

Average Total Assets - Quarter-to-Date

3,403,270

3,332,301

3,076,712

2,940,262

2,816,032

Average Shareholders' Equity - Quarter-to-Date

374,035

330,604

286,311

272,729

265,716

For the Three Months Ended

For the Year Ended

December 31,

September 30,

December 31,

(dollars in thousands)

2021

2020

2021

2020

Selected Income Statement Data

Interest Income

33,775

33,517

30,699

128,879

114,826

Interest Expense

4,622

4,844

5,858

19,370

26,862

Net Interest Income

29,153

28,673

24,841

109,509

87,964

Provision for Loan Losses

1,150

1,300

3,900

5,150

12,750

Net Interest Income after Provision for Loan Losses

28,003

27,373

20,941

104,359

75,214

Noninterest Income

1,288

1,410

986

5,309

5,839

Noninterest Expense

12,459

13,236

15,258

48,095

45,387

Income Before Income Taxes

16,832

15,547

6,669

61,573

35,666

Provision for Income Taxes

4,318

4,038

1,690

15,886

8,472

Net Income

12,514

11,509

4,979

45,687

27,194

Preferred Stock Dividends

(1,171)

Net Income Available to Common Shareholders

11,343

11,509

4,979

44,516

27,194

Income Statement

Net Interest Income

Net interest income was $29.2 million for the fourth quarter of 2021, an increase of $480,000, or 1.7%, from $28.7 million in the third quarter of 2021, and an increase of $4.3 million, or 17.4%, from $24.8 million in the fourth quarter of 2020. The linked-quarter and year-over-year increases in net interest income were primarily due to growth in average interest earning assets and lower rates paid on deposits, offset partially by declining yields on loans. Average interest earning assets were $3.32 billion for the fourth quarter of 2021, an increase of $86.3 million, or 2.7%, from $3.23 billion for the third quarter of 2021, and an increase of $561.1 million, or 20.3%, from $2.76 billion for the fourth quarter of 2020. The linked-quarter increase in average interest earning assets was primarily due to continued strong organic growth in the loan portfolio, offset partially by the payoff of PPP loans and the reduction of cash balances. The year-over-year increase in average interest earning assets was primarily due to increased cash balances, continued purchases of investment securities, and strong organic growth in the loan portfolio, offset partially by the payoff of PPP loans.

Net interest margin (on a fully tax-equivalent basis) for the fourth quarter of 2021 was 3.51%, a 3 basis point decrease from 3.54% in the third quarter of 2021, and a 10 basis point decrease from 3.61% in the fourth quarter of 2020. Core net interest margin (on a fully tax-equivalent basis), a non-GAAP financial measure which excludes the impact of loan fees and PPP balances, interest, and fees, for the fourth quarter of 2021 was 3.25%, a 3 basis point increase from 3.22% in the third quarter of 2021, and a 4 basis point decline from 3.29% in the fourth quarter of 2020.

As the PPP loan portfolio pays down, the recognition of fees associated with the originations has benefited net interest margin for each of the past four quarters. The SBA has been forgiving PPP loans, which has accelerated the recognition of PPP fees starting in the fourth quarter of 2020 and continuing through the fourth quarter of 2021. The Company recognized $958,000 of PPP origination fees during the fourth quarter of 2021, compared to $1.6 million during the third quarter of 2021. The elevated fee recognition is illustrated in the 10.51% PPP loan yield for the fourth quarter of 2021, compared to 9.15% for the third quarter of 2021. Remaining PPP origination fees to be recognized as of December 31, 2021 were $898,000.

Page 4 of 19

The following table summarizes PPP loan originations and net origination fees as of December 31, 2021:

Originated

Outstanding

Program Lifetime

Number

Principal

Number

Principal

Net Origination

(dollars in thousands)

of Loans

Balance

of Loans

Balance

Fees Generated

Fees Earned

Round One PPP Loans

1,200

181,600

1,109

5,706

5,698

Round Two PPP Loans

651

78,386

136

25,053

3,544

2,654

Totals

1,851

259,986

153

26,162

9,250

8,352

Interest income was $33.8 million for the fourth quarter of 2021, an increase of $258,000, or 0.8%, from $33.5 million in the third quarter of 2021, and an increase of $3.1 million, or 10.0%, from $30.7 million in the fourth quarter of 2020. The yield on interest earning assets (on a fully tax-equivalent basis) was 4.06% in the fourth quarter of 2021, compared to 4.14% in the third quarter of 2021, and 4.46% in the fourth quarter of 2020. The linked-quarter decrease in the yield on interest earning assets was primarily due to the historically low interest rate environment resulting in a lower core loan yield, as well as lower PPP origination fees recognized during the period. The year-over-year decline in the yield on interest earning assets was primarily due to excess cash balances and the historically low interest rate environment resulting in lower loan and security yields.

Loan interest income and loan fees remain the primary contributing factors to the changes in yield on interest earning assets. The aggregate loan yield, excluding PPP loans, decreased to 4.41% in the fourth quarter of 2021, which was 10 basis points lower than 4.51% in the third quarter of 2021, and 46 basis points lower than 4.87% in the fourth quarter of 2020. While loan fees have maintained a relatively stable contribution to the aggregate loan yield, the historically low yield curve has resulted in a declining core yield on loans in comparison to both prior periods.

A summary of interest and fees recognized on loans, excluding PPP loans, for the periods indicated is as follows:

Three Months Ended

December 31, 2021

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

Interest

4.20

4.28

4.37

4.50

4.59

Fees

0.21

0.23

0.17

0.22

0.28

Yield on Loans, Excluding PPP Loans

4.41

4.51

4.54

4.72

4.87

Interest expense was $4.6 million for the fourth quarter of 2021, a decrease of $222,000, or 4.6%, from $4.8 million in the third quarter of 2021, and a decrease of $1.2 million, or 21.1%, from $5.9 million in the fourth quarter of 2020. The cost of interest bearing liabilities declined 2 basis points on a linked-quarter basis from 0.88% in the third quarter of 2021 to 0.86% in the fourth quarter of 2021, primarily due to lower rates paid on deposits. On a year-over-year basis, the cost of interest bearing liabilities decreased 38 basis points from 1.24% in the fourth quarter of 2020 to 0.86% in the fourth quarter of 2021, primarily due to lower rates paid on deposits, the payoff of the Company's notes payable, and the early extinguishment of $94.0 million of longer term FHLB advances, offset partially by strong growth of interest bearing deposits and additional subordinated debentures.

Interest expense on deposits was $3.2 million for the fourth quarter of 2021, a decrease of $176,000, or 5.2%, from $3.4 million in the third quarter of 2021, and a decrease of $838,000, or 20.5%, from $4.1 million in the fourth quarter of 2020. The cost of total deposits declined 3 basis points on a linked-quarter basis from 0.48% in the third quarter of 2021, and declined 24 basis points on a year-over-year basis from 0.69% in the fourth quarter of 2020, to 0.45% in the fourth quarter of 2021, primarily due to deposit rate cuts consistent with a lower rate environment and the continued downward repricing of time deposits.

Page 5 of 19

A summary of the Company's average balances, interest yields and rates, and net interest margin for the three months ended December 31, 2021, September 30, 2021, and December 31, 2020 is as follows:

For the Three Months Ended

December 31, 2021

September 30, 2021

December 31, 2020

Average

Interest

Yield/

Average

Interest

Yield/

Average

Interest

Yield/

Balance

& Fees

Rate

Balance

& Fees

Rate

Balance

& Fees

Rate

(dollars in thousands)

Interest Earning Assets:

Cash Investments

146,744

0.18

187,405

0.14

79,896

0.16

Investment Securities:

Taxable Investment Securities

341,325

1,893

2.20

314,367

1,751

2.21

290,093

1,632

2.24

Tax-Exempt Investment Securities (1)

71,602

782

4.33

71,801

737

4.07

81,370

888

4.34

Total Investment Securities

412,927

2,675

2.57

386,168

2,488

2.56

371,463

2,520

2.70

Paycheck Protection Program Loans (2)

39,900

1,057

10.51

76,006

1,753

9.15

165,099

2,097

5.05

Loans (1)(2)

2,715,722

30,154

4.41

2,579,021

29,348

4.51

2,136,229

26,168

4.87

Total Loans

2,755,622

31,211

4.49

2,655,027

31,101

4.65

2,301,328

28,265

4.89

Federal Home Loan Bank Stock

5,310

4.39

5,701

4.65

6,856

5.35

Total Interest Earning Assets

3,320,603

34,010

4.06

3,234,301

33,724

4.14

2,759,543

30,909

4.46

Noninterest Earning Assets

82,667

98,000

56,489

Total Assets

3,403,270

3,332,301

2,816,032

Interest Bearing Liabilities:

Deposits:

Interest Bearing Transaction Deposits

499,475

548

0.43

479,580

562

0.47

353,806

420

0.47

Savings and Money Market Deposits

803,848

876

0.43

801,354

904

0.45

538,030

1,003

0.74

Time Deposits

299,823

830

1.10

318,222

928

1.16

362,469

1,607

1.76

Brokered Deposits

404,438

987

0.97

440,167

1,023

0.92

433,037

1,049

0.96

Total Interest Bearing Deposits

2,007,584

3,241

0.64

2,039,323

3,417

0.66

1,687,342

4,079

0.96

Federal Funds Purchased

0.67

4,072

0.33

Notes Payable

11,000

105

3.77

FHLB Advances

44,185

162

1.46

54,130

213

1.56

99,196

551

2.21

Subordinated Debentures

92,189

1,219

5.25

91,337

1,214

5.27

73,696

1,119

6.04

Total Interest Bearing Liabilities

2,143,968

4,622

0.86

2,184,790

4,844

0.88

1,875,306

5,858

1.24

Noninterest Bearing Liabilities:

Noninterest Bearing Transaction Deposits

861,473

784,148

654,299

Other Noninterest Bearing Liabilities

23,794

32,759

20,711

Total Noninterest Bearing Liabilities

885,267

816,907

675,010

Shareholders' Equity

374,035

330,604

265,716

Total Liabilities and Shareholders' Equity

3,403,270

3,332,301

2,816,032

Net Interest Income / Interest Rate Spread

29,388

3.20

28,880

3.26

25,051

3.22

Net Interest Margin (3)

3.51

3.54

3.61

Taxable Equivalent Adjustment:

Tax-Exempt Investment Securities and Loans

(235)

(207)

(210)

Net Interest Income

29,153

28,673

24,841

Page 6 of 19

Provision for Loan Losses

The provision for loan losses was $1.2 million for the fourth quarter of 2021, a decrease of $150,000 from $1.3 million for the third quarter of 2021, and a decrease of $2.8 million from $3.9 million for the fourth quarter of 2020. The provision recorded in the fourth quarter of 2021 was primarily attributable to growth of the loan portfolio. The allowance for loan losses to total loans was 1.42% at December 31, 2021, compared to 1.43% at September 30, 2021, and 1.50% at December 31, 2020. The allowance for loan losses to total loans, excluding PPP loans, was 1.43% at December 31, 2021, compared to 1.46% at September 30, 2021, and 1.59% at December 31, 2020.

As an emerging growth company, the Company is not subject to Accounting Standards Update No. 2016-13 "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments," or CECL, until January 1, 2023.

The following table presents the activity in the Company's allowance for loan losses for the periods indicated:

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

(dollars in thousands)

2021

2020

2021

2020

Balance at Beginning of Period

38,901

37,591

31,381

34,841

22,526

Provision for Loan Losses

1,150

1,300

3,900

5,150

12,750

Charge-offs

(37)

(20)

(463)

(74)

(517)

Recoveries

103

Balance at End of Period

40,020

38,901

34,841

40,020

34,841

Noninterest Income

Noninterest income was $1.3 million for the fourth quarter of 2021, a decrease of $122,000 from $1.4 million for the third quarter of 2021, and an increase of $302,000 from $986,000 for the fourth quarter of 2020. The linked-quarter decrease was primarily due to decreased gains on sales of securities and letter of credit fees. The year-over-year increase was primarily due to increased letter of credit fees and bank-owned life insurance income.

The following table presents the major components of noninterest income for the periods indicated:

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

(dollars in thousands)

2021

2020

2021

2020

Noninterest Income:

Customer Service Fees

274

268

251

1,007

826

Net Gain on Sales of Securities

750

1,503

Letter of Credit Fees

541

577

477

1,676

1,503

Debit Card Interchange Fees

149

143

118

563

428

Swap Fees

907

Bank-Owned Life Insurance

150

166

316

Other Income

174

208

110

997

672

Totals

1,288

1,410

986

5,309

5,839

Noninterest Expense

Noninterest expense was $12.5 million for the fourth quarter of 2021, a decrease of $777,000 from $13.2 million for the third quarter of 2021, and a decrease of $2.8 million from $15.3 million for the fourth quarter of 2020. The linked-quarter decrease was primarily due to lower salaries and employee benefits related to higher bonus accruals in the third quarter of 2021, and $582,000 of debt prepayment fees associated with a partial early redemption of $11.3 million of subordinated debentures issued in July 2017 that occurred in the third quarter of 2021. The year-over-year decrease was primarily attributable to $5.6 million of debt prepayment fees associated with the early extinguishment of $69.0 million of FHLB term advances incurred in the fourth quarter of 2020, partially offset by an increase in salaries and employee benefits, and marketing and advertising expenses.

Page 7 of 19

The following table presents the major components of noninterest expense for the periods indicated:

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

(dollars in thousands)

2021

2020

2021

2020

Noninterest Expense:

Salaries and Employee Benefits

7,966

8,309

6,216

30,889

25,568

Occupancy and Equipment

939

942

979

3,916

3,258

FDIC Insurance Assessment

345

355

270

1,305

788

Data Processing

306

325

293

1,222

1,027

Professional and Consulting Fees

719

708

566

2,523

1,966

Information Technology and Telecommunications

554

598

397

2,163

1,374

Marketing and Advertising

469

418

143

1,487

788

Intangible Asset Amortization

191

Amortization of Tax Credit Investments

152

146

562

738

Debt Prepayment Fees

582

5,613

582

7,043

Other Expense

961

799

587

3,255

2,646

Totals

12,459

13,236

15,258

48,095

45,387

The Company continues to add key talent across the organization, reaching 220 full-time equivalent employees at December 31, 2021, compared to 219 employees at September 30, 2021, and 183 employees at December 31, 2020.

The efficiency ratio, a non-GAAP financial measure, was 40.8% for the fourth quarter of 2021, compared to 43.9% for the third quarter of 2021, and 59.0% for the fourth quarter of 2020. Excluding the impact of certain non-routine income and expenses, the adjusted efficiency ratio, a non-GAAP financial measure, was 40.3% for the fourth quarter of 2021, 41.5% for the third quarter of 2021 and 36.6% for the fourth quarter of 2020. The efficiencies of the Company's "branch-light" model have positioned the Company well, and going forward, provide more flexibility for the Company to make significant investments in technology as the industry adapts to evolving client behavior.

Income Taxes

The effective combined federal and state income tax rate for the fourth quarter of 2021 was 25.7%, a decrease from 26.0% for the third quarter of 2021 and an increase from 25.3% for the fourth quarter of 2020. The effective combined federal and state income tax rate for the year ended December 31, 2021 was 25.8%, compared to 23.8% for the year ended December 31, 2020.

Balance Sheet

Total assets at December 31, 2021 were $3.48 billion, a 2.6% increase from $3.39 billion at September 30, 2021, and an 18.8% increase from $2.93 billion at December 31, 2020. The linked-quarter increase in total assets was primarily due to strong organic loan growth, offset partially by a decrease in cash and cash equivalents. The year-over-year increase in total assets was primarily due to robust organic loan growth, as well as the continued purchases of investment securities.

Total gross loans at December 31, 2021 were $2.82 billion, an increase of $107.5 million, or 4.0%, over total gross loans of $2.71 billion at September 30, 2021, and an increase of $493.0 million, or 21.2%, over total gross loans of $2.33 billion at December 31, 2020. The increase in the loan portfolio during the fourth quarter of 2021 was primarily due to growth in the construction and land development, multifamily and CRE nonowner occupied segments, offset partially by the payoff of PPP loans. When excluding PPP loans, gross loans grew $135.5 million during the fourth quarter of 2021, or 20.2% on an annualized basis. The Company's continued strong loan growth has been driven by the expansion of its talented lending teams, PPP-related new client acquisitions, the strong, growing brand of the Bank in the Twin Cities market and the M&A-related market disruption in the Twin Cities resulting in client and banker acquisition opportunities.

Page 8 of 19

The following table presents the dollar composition of the Company's loan portfolio, by category, at the dates indicated:

December 31, 2021

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

(dollars in thousands)

Commercial

360,169

350,081

321,474

301,023

304,220

Paycheck Protection Program

26,162

54,190

99,072

163,258

138,454

Construction and Land Development

281,474

257,167

251,573

193,372

170,217

Real Estate Mortgage:

1 - 4 Family Mortgage

305,317

290,535

277,943

294,964

294,479

Multifamily

910,243

865,172

790,275

665,415

626,465

CRE Owner Occupied

111,096

101,834

87,507

79,665

75,604

CRE Nonowner Occupied

818,569

786,271

758,101

720,396

709,300

Total Real Estate Mortgage Loans

2,145,225

2,043,812

1,913,826

1,760,440

1,705,848

Consumer and Other

6,442

6,762

8,241

8,030

7,689

Total Loans, Gross

2,819,472

2,712,012

2,594,186

2,426,123

2,326,428

Allowance for Loan Losses

(40,020)

(38,901)

(37,591)

(35,987)

(34,841)

Net Deferred Loan Fees

(9,535)

(10,199)

(11,450)

(11,273)

(9,151)

Total Loans, Net

2,769,917

2,662,912

2,545,145

2,378,863

2,282,436

Total deposits at December 31, 2021 were $2.95 billion, an increase of $92.1 million, or 3.2%, over total deposits of $2.85 billion at September 30, 2021, and an increase of $444.6 million, or 17.8%, over total deposits of $2.50 billion at December 31, 2020. Deposit growth in the fourth quarter of 2021 was primarily due to an increase in noninterest bearing and interest bearing transaction deposits and savings and money market deposits, offset partially by declines in time deposits and brokered deposits. Similar to the loan portfolio, the growth in core deposits has been a result of successful new client and banker acquisition initiatives and the strong, growing brand of the Bank in the Twin Cities market. However, given the prospect for higher interest rates, management believes deposits could experience fluctuations in future periods.

The following table presents the dollar composition of the Company's deposit portfolio, by category, at the dates indicated:

December 31, 2021

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

(dollars in thousands)

Noninterest Bearing Transaction Deposits

875,084

846,490

758,023

712,999

671,903

Interest Bearing Transaction Deposits

544,789

488,785

432,123

433,344

366,290

Savings and Money Market Deposits

863,567

791,861

761,485

791,583

657,617

Time Deposits

293,474

309,824

321,857

344,581

353,543

Brokered Deposits

369,323

417,197

447,418

356,147

452,283

Total Deposits

2,946,237

2,854,157

2,720,906

2,638,654

2,501,636

Capital

Total shareholders' equity at December 31, 2021 was $379.3 million, an increase of $11.5 million, or 3.1%, over total shareholders' equity of $367.8 million at September 30, 2021, and an increase of $113.9 million, or 42.9%, over total shareholders' equity of $265.4 million at December 31, 2020. The linked-quarter increase was due to net income retained. The year-over-year increase was due to net income retained, the issuance of preferred stock and an increase in unrealized gains in the securities and derivatives portfolios.

During the fourth quarter of 2021, the Company repurchased 3,320 shares of its common stock. Shares were repurchased at a weighted average price of $16.36 for a total of $54,000. The Company remains committed to maintaining strong capital levels while enhancing shareholder value as it strategically executes its stock repurchase program in this fluid economic environment.

Tangible book value per share, a non-GAAP financial measure, was $10.98 as of December 31, 2021, an increase of 3.3% from $10.62 as of September 30, 2021, and an increase of 17.9% from $9.31 as of December 31, 2020. Tangible common equity as a percentage of tangible assets, a non-GAAP financial measure, was 8.91% at December 31, 2021, compared to 8.81% at September 30, 2021, and 8.96% at December 31, 2020.

Asset Quality

Annualized net charge-offs as a percent of average loans for both the third and fourth quarters of 2021 were 0.00%, compared to 0.08% for the fourth quarter of 2020. At December 31, 2021, the Company's nonperforming assets, which include nonaccrual loans, loans past due 90 days and still accruing, and foreclosed assets, were $722,000, or 0.02% of total assets, as compared to $734,000, or 0.02% of total assets at September 30, 2021, and $775,000 or 0.03% of total assets at December 31, 2020.

Page 9 of 19

The Company has increased oversight and analysis of all segments of the loan portfolio in response to the COVID-19 pandemic, especially in vulnerable industries such as hospitality and restaurants, to proactively monitor evolving credit risk. Loans that have potential weaknesses that warrant a watchlist risk rating at December 31, 2021 totaled $49.3 million, compared to $67.4 million at September 30, 2021, and $44.8 million at December 31, 2020. As the COVID-19 pandemic continues to evolve, the length and extent of the economic uncertainty may result in further watchlist or adverse classifications in the loan portfolio. Loans that warranted a substandard risk rating at December 31, 2021 totaled $22.6 million, compared to $7.7 million at September 30, 2021, and $15.2 million at December 31, 2020. The linked-quarter increase to substandard loans was primarily due to the migration of two relationships previously listed as watch and both negatively impacted by the pandemic. Management continues to actively work with the borrowers and closely monitor substandard credits.

The following table presents a summary of asset quality measurements at the dates indicated:

As of and for the Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

(dollars in thousands)

2021

2020

Selected Asset Quality Data

Loans 30-89 Days Past Due

Loans 30-89 Days Past Due to Total Loans

0.00

Nonperforming Loans

722

734

761

770

775

Nonperforming Loans to Total Loans

0.03

Foreclosed Assets

Nonaccrual Loans to Total Loans

0.03

Nonaccrual Loans and Loans Past Due 90 Days and Still Accruing to Total Loans

0.03

Nonperforming Assets (1)

722

734

761

770

775

Nonperforming Assets to Total Assets (1)

0.02

0.03

Allowance for Loan Losses to Total Loans

1.42

1.43

1.45

1.48

1.50

Allowance for Loan Losses to Total Loans, Excluding PPP Loans

1.43

1.46

1.50

1.59

Allowance for Loans Losses to Nonaccrual Loans

5,542.94

5,299.86

4,939.68

4,673.64

4,495.61

Net Loan Charge-Offs (Recoveries) (Annualized) to Average Loans

0.00

(0.01)

0.08

The Company developed programs for clients who experienced business and personal disruptions due to the COVID-19 pandemic by providing interest-only modifications, loan payment deferrals, and extended amortization modifications. In accordance with interagency regulatory guidance and the CARES Act, qualifying loans modified in response to the COVID-19 pandemic are not considered troubled debt restructurings. The Company had 12 modified loans totaling $35.0 million outstanding as of December 31, 2021, representing 1.3% of the total loan portfolio, excluding PPP loans, which is down slightly from $35.4 million at September 30, 2021.

Page 10 of 19

The following table presents a rollforward of loan modification activity, by modification type, from September 30, 2021 to December 31, 2021:

(dollars in thousands)

Interest-Only

Extended Amortization

Total

Principal Balance - Beginning of Period

30,597

4,764

35,361

Modification Expired

(468)

Net Principal Advances (Payments)

120

(24)

Principal Balance - End of Period

30,249

4,740

34,989

About the Company

Bridgewater Bancshares, Inc. (Nasdaq: BWB) is a St. Louis Park, Minnesota-based financial holding company. Bridgewater's banking subsidiary, Bridgewater Bank, is a premier, full-service Twin Cities bank dedicated to serving the diverse needs of commercial real estate investors, entrepreneurs, business clients and high-net-worth individuals. By pairing a range of deposit, lending and business services solutions with a responsive service model, Bridgewater has seen continuous growth and profitability. With total assets of $3.5 billion and seven branches as of December 31, 2021, Bridgewater is considered one of the largest locally led banks in the State of Minnesota, and has received numerous awards for its growth, banking services and esteemed corporate culture.

Investor Relations Contact:

Justin Horstman

Director of Investor Relations

[email protected]

952-542-5169

Use of Non-GAAP financial measures

In addition to the results presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP), the Company routinely supplements its evaluation with an analysis of certain non-GAAP financial measures. The Company believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors to help them understand the Company's operating performance and trends, and to facilitate comparisons with the performance of peers. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of non-GAAP disclosures used in this earnings release to the comparable GAAP measures are provided in the accompanying tables.

Forward-Looking Statements

This earnings release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, identified by words such as "may", "might", "should", "could", "predict", "potential", "believe", "expect", "continue", "will", "anticipate", "seek", "estimate", "intend", "plan", "projection", "would", "annualized", "target" and "outlook", or the negative version of those words or other comparable words of a future or forward-looking nature.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the negative effects of the ongoing COVID-19 pandemic, including its effects on the economic environment, our clients and our operations, including due to supply chain disruptions, as well as any changes to federal, state or local government laws, regulations or orders in connection with the pandemic; loan concentrations in our portfolio; the overall health of the local and national real estate market; our ability to successfully manage credit risk; business and economic conditions generally and in the financial services industry, nationally and within our market area, including rising rates of inflation; our ability to maintain an adequate level of allowance for loan losses; new or revised accounting standards, including as a result of the future implementation of the Current Expected Credit Loss standard; the concentration of large loans to certain borrowers; the concentration of large deposits from certain clients; our ability to successfully manage liquidity risk, especially in light of recent excess liquidity at the Bank; our dependence on non-core funding sources and our cost of funds; our ability to raise additional capital to implement our business plan; our ability to implement our growth strategy and manage costs effectively; developments and uncertainty related to the future use and availability of some reference rates, such as the London Interbank Offered Rate, as well as other alternative reference rates; the composition of our senior leadership team and our ability to attract and retain key personnel; talent and labor shortages and high rates of employee turnover; the occurrence of fraudulent activity, breaches or failures of our information security controls or

Page 11 of 19

cybersecurity-related incidents; interruptions involving our information technology and telecommunications systems or third-party servicers; competition in the financial services industry, including from nonbank competitors such as credit unions and "fintech" companies; the effectiveness of our risk management framework; the commencement and outcome of litigation and other legal proceedings and regulatory actions against us; the impact of recent and future legislative and regulatory changes, including changes to federal and state corporate tax rates; interest rate risk, including the effects of anticipated rate increases by the Federal Reserve; fluctuations in the values of the securities held in our securities portfolio; the imposition of tariffs or other governmental policies impacting the value of products produced by our commercial borrowers; severe weather, natural disasters, wide spread disease or pandemics (including the COVID-19 pandemic), acts of war or terrorism or other adverse external events; potential impairment to the goodwill we recorded in connection with our past acquisition; changes to U.S. or state tax laws, regulations and guidance, including recent proposals to increase the federal corporate tax rate; and any other risks described in the "Risk Factors" sections of reports filed by the Company with the Securities and Exchange Commission.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Page 12 of 19

Bridgewater Bancshares, Inc. and Subsidiaries Consolidated Balance Sheets

(dollars in thousands, except share data)

December 31,

September 30,

December 31,

2021

2020

(Unaudited)

ASSETS

Cash and Cash Equivalents

143,473

189,502

160,675

Bank-Owned Certificates of Deposit

1,876

1,877

2,860

Securities Available for Sale, at Fair Value

439,362

413,149

390,629

Loans, Net of Allowance for Loan Losses of $40,020 at December 31, 2021 (unaudited), $38,901 at September 30, 2021 (unaudited) and $34,841 at December 31, 2020

2,769,917

2,662,912

2,282,436

Federal Home Loan Bank (FHLB) Stock, at Cost

5,242

5,442

5,027

Premises and Equipment, Net

49,395

49,803

50,987

Accrued Interest

9,186

8,550

9,172

Goodwill

2,626

Other Intangible Assets, Net

479

527

670

Other Assets

56,103

54,737

22,263

Total Assets

3,477,659

3,389,125

2,927,345

LIABILITIES AND EQUITY

LIABILITIES

Deposits:

Noninterest Bearing

875,084

846,490

671,903

Interest Bearing

2,071,153

2,007,667

1,829,733

Total Deposits

2,946,237

2,854,157

2,501,636

Notes Payable

11,000

FHLB Advances

42,500

47,500

57,500

Subordinated Debentures, Net of Issuance Costs

92,239

92,153

73,739

Accrued Interest Payable

1,409

1,656

1,615

Other Liabilities

16,002

25,856

16,450

Total Liabilities

3,098,387

3,021,322

2,661,940

SHAREHOLDERS' EQUITY

Preferred Stock- $0.01 par value; Authorized 10,000,000

Preferred Stock - Issued and Outstanding 2,760,000 Series A shares ($25 liquidation preference) at December 31, 2021 (unaudited), 2,760,000 at September 30, 2021 (unaudited) and -0- at December 31, 2020

66,514

66,515

Common Stock- $0.01 par value; Authorized 75,000,000

Common Stock - Issued and Outstanding 28,206,566 at December 31, 2021 (unaudited), 28,066,822 at September 30, 2021 (unaudited) and 28,143,493 at December 31, 2020

282

281

Additional Paid-In Capital

104,123

103,471

103,714

Retained Earnings

199,347

188,004

154,831

Accumulated Other Comprehensive Income

9,006

9,532

6,579

Total Shareholders' Equity

379,272

367,803

265,405

Total Liabilities and Shareholders' Equity

3,477,659

3,389,125

2,927,345

Page 13 of 19

Bridgewater Bancshares, Inc. and Subsidiaries Consolidated Statements of Income

(dollars in thousands, except per share data)

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

2021

2020

2021

2020

(Unaudited)

INTEREST INCOME

Loans, Including Fees

31,140

31,049

28,242

118,845

105,492

Investment Securities

2,511

2,333

9,576

8,720

Other

124

135

124

458

614

Total Interest Income

33,775

33,517

30,699

128,879

114,826

INTEREST EXPENSE

Deposits

3,241

3,417

4,079

13,842

19,813

Notes Payable

105

439

FHLB Advances

162

213

551

831

3,390

Subordinated Debentures

1,219

1,214

1,119

4,630

3,109

Federal Funds Purchased

111

Total Interest Expense

4,622

4,844

5,858

19,370

26,862

NET INTEREST INCOME

29,153

28,673

24,841

109,509

87,964

Provision for Loan Losses

1,150

1,300

3,900

5,150

12,750

NET INTEREST INCOME AFTER

PROVISION FOR LOAN LOSSES

28,003

27,373

20,941

104,359

75,214

NONINTEREST INCOME

Customer Service Fees

274

268

251

1,007

826

Net Gain on Sales of Available for Sale Securities

750

1,503

Other Income

1,014

1,094

705

3,552

3,510

Total Noninterest Income

1,288

1,410

986

5,309

5,839

NONINTEREST EXPENSE

Salaries and Employee Benefits

7,966

8,309

6,216

30,889

25,568

Occupancy and Equipment

939

942

979

3,916

3,258

Other Expense

3,554

3,985

8,063

13,290

16,561

Total Noninterest Expense

12,459

13,236

15,258

48,095

45,387

INCOME BEFORE INCOME TAXES

16,832

15,547

6,669

61,573

35,666

Provision for Income Taxes

4,318

4,038

1,690

15,886

8,472

NET INCOME

12,514

11,509

4,979

45,687

27,194

Preferred Stock Dividends

1,171

NET INCOME TO COMMON SHAREHOLDERS

11,343

11,509

4,979

44,516

27,194

EARNINGS PER SHARE

Basic

0.41

0.18

1.59

0.95

Diluted

0.39

0.40

0.17

1.54

0.93

Dividends Paid Per Common Share

Page 14 of 19

Bridgewater Bancshares, Inc. and Subsidiaries Analysis of Average Balances, Yields and Rates

(dollars in thousands, except per share data)

For the Year Ended

December 31, 2021

December 31, 2020

Average

Interest

Yield/

Average

Interest

Yield/

Balance

& Fees

Rate

Balance

& Fees

Rate

(dollars in thousands)

Interest Earning Assets:

Cash Investments

132,188

199

0.15

80,113

170

0.21

Investment Securities:

Taxable Investment Securities

317,954

7,015

2.21

234,873

5,712

2.43

Tax-Exempt Investment Securities (1)

75,313

3,242

4.30

87,587

3,807

4.35

Total Investment Securities

393,267

10,257

2.61

322,460

9,519

2.95

Paycheck Protection Program Loans (2)

103,151

6,441

6.24

122,240

4,143

3.39

Loans (1)(2)

2,481,706

112,587

4.54

2,032,180

101,469

4.99

Total Loans

2,584,857

119,028

4.60

2,154,420

105,612

4.90

Federal Home Loan Bank Stock

5,571

259

4.65

8,866

444

5.01

Total Interest Earning Assets

3,115,883

129,743

4.16

2,565,859

115,745

4.51

Noninterest Earning Assets

73,917

51,720

Total Assets

3,189,800

2,617,579

Interest Bearing Liabilities:

Deposits:

Interest Bearing Transaction Deposits

441,528

2,052

0.46

295,036

1,626

0.55

Savings and Money Market Deposits

773,779

3,729

0.48

523,520

5,341

1.02

Time Deposits

323,638

4,099

1.27

374,195

7,806

2.09

Brokered Deposits

406,863

3,962

0.97

348,126

5,040

1.45

Total Interest Bearing Deposits

1,945,808

13,842

0.71

1,540,877

19,813

1.29

Federal Funds Purchased

2,479

0.24

7,239

111

1.53

Notes Payable

1,658

3.66

11,749

439

3.73

FHLB Advances

53,294

831

1.56

148,524

3,390

2.28

Subordinated Debentures

82,865

4,630

5.59

50,954

3,109

6.10

Total Interest Bearing Liabilities

2,086,104

19,370

0.93

1,759,343

26,862

1.53

Noninterest Bearing Liabilities:

Noninterest Bearing Transaction Deposits

764,087

579,595

Other Noninterest Bearing Liabilities

23,372

19,905

Total Noninterest Bearing Liabilities

787,459

599,500

Shareholders' Equity

316,237

258,736

Total Liabilities and Shareholders' Equity

3,189,800

2,617,579

Net Interest Income / Interest Rate Spread

110,373

3.23

88,883

2.98

Net Interest Margin (3)

3.54

3.46

Taxable Equivalent Adjustment:

Tax-Exempt Investment Securities

(864)

(919)

Net Interest Income

109,509

87,964

Page 15 of 19

Non-GAAP Financial Measures

(dollars in thousands) (unaudited)

For the Three Months Ended

For the Year Ended

December 31,

September 30,

December 31,

2021

2020

2021

2020

Pre-Provision Net Revenue

Noninterest Income

1,288

1,410

986

5,309

5,839

Less: Gain on sales of Securities

(48)

(30)

(750)

(1,503)

Total Operating Noninterest Income

1,288

1,362

956

4,559

4,336

Plus: Net Interest Income

29,153

28,673

24,841

109,509

87,964

Net Operating Revenue

30,441

30,035

25,797

114,068

92,300

Noninterest Expense

12,459

13,236

15,258

48,095

45,387

Less: Amortization of Tax Credit Investments

(152)

(146)

(562)

(738)

Less: Debt Prepayment Fees

(582)

(5,613)

(582)

(7,043)

Total Operating Noninterest Expense

12,307

12,502

9,499

46,951

37,606

Pre-Provision Net Revenue

18,134

17,533

16,298

67,117

54,694

Plus:

Non-Operating Revenue Adjustments

750

1,503

Less:

Provision for Loan Losses

1,150

1,300

3,900

5,150

12,750

Non-Operating Expense Adjustments

152

734

5,759

1,144

7,781

Provision for Income Taxes

4,318

4,038

1,690

15,886

8,472

Net Income

12,514

11,509

4,979

45,687

27,194

Average Assets

3,403,270

3,332,301

2,816,032

3,189,800

2,617,579

Pre-Provision Net Revenue Return on Average Assets

2.11

2.09

2.30

2.10

2.09

As of and for the Three Months Ended

As of and for the Year Ended

December 31,

September 30,

December 31,

2021

2020

2021

2020

Core Net Interest Margin

Net Interest Income (Tax-Equivalent Basis)

29,388

28,880

25,051

110,373

88,883

Less: Loan Fees

(1,462)

(1,487)

(1,514)

(5,173)

(5,283)

Less: PPP Interest and Fees

(1,057)

(1,753)

(2,097)

(6,441)

(4,143)

Core Net Interest Income

26,869

25,640

21,440

98,759

79,457

Average Interest Earning Assets

3,320,603

3,234,301

2,759,543

3,115,883

2,565,859

Less: Average PPP Loans

(39,900)

(76,006)

(165,099)

(103,151)

(122,240)

Core Average Interest Earning Assets

3,280,703

3,158,295

2,594,444

3,012,732

2,443,619

Core Net Interest Margin

3.25

3.22

3.29

3.28

3.25

Page 16 of 19

Non-GAAP Financial Measures

(dollars in thousands) (unaudited)

For the Three Months Ended

For the Year Ended

December 31,

September 30,

December 31,

2021

2020

2021

2020

Efficiency Ratio

Noninterest Expense

12,459

13,236

15,258

48,095

45,387

Less: Amortization of Intangible Assets

(48)

(191)

Adjusted Noninterest Expense

12,411

13,188

15,210

47,904

45,196

Net Interest Income

29,153

28,673

24,841

109,509

87,964

Noninterest Income

1,288

1,410

986

5,309

5,839

Less: Gain on Sales of Securities

(48)

(30)

(750)

(1,503)

Adjusted Operating Revenue

30,441

30,035

25,797

114,068

92,300

Efficiency Ratio

40.8

43.9

59.0

42.0

49.0

Adjusted Efficiency Ratio

Noninterest Expense

12,459

13,236

15,258

48,095

45,387

Less: Amortization of Tax Credit Investments

(152)

(146)

(562)

(738)

Less: Debt Prepayment Fees

(582)

(5,613)

(582)

(7,043)

Less: Amortization of Intangible Assets

(48)

(191)

Adjusted Noninterest Expense

12,259

12,454

9,451

46,760

37,415

Net Interest Income

29,153

28,673

24,841

109,509

87,964

Noninterest Income

1,288

1,410

986

5,309

5,839

Less: Gain on Sales of Securities

(48)

(30)

(750)

(1,503)

Adjusted Operating Revenue

30,441

30,035

25,797

114,068

92,300

Adjusted Efficiency Ratio

40.3

41.5

36.6

41.0

40.5

For the Three Months Ended

For the Year Ended

December 31,

September 30,

December 31,

2021

2020

2021

2020

Adjusted Noninterest Expense to Average Assets (Annualized)

Noninterest Expense

12,459

13,236

15,258

48,095

45,387

Less: Amortization of Tax Credit Investments

(152)

(146)

(562)

(738)

Less: Debt Prepayment Fees

(582)

(5,613)

(582)

(7,043)

Adjusted Noninterest Expense

12,307

12,502

9,499

46,951

37,606

Average Assets

3,403,270

3,332,301

2,816,032

3,189,800

2,617,579

Adjusted Noninterest Expense to Average Assets (Annualized)

1.43

1.49

1.34

1.47

1.44

Page 17 of 19

Non-GAAP Financial Measures

(dollars in thousands) (unaudited)

As of and for the Three Months Ended

As of and for the Year Ended

December 31,

September 30,

December 31,

2021

2020

2021

2020

Tangible Common Equity and Tangible Common Equity/Tangible Assets

Total Shareholders' Equity

379,272

367,803

265,405

Less: Preferred Stock

(66,514)

(66,515)

Total Common Shareholders' Equity

312,758

301,288

265,405

Less: Intangible Assets

(3,105)

(3,153)

(3,296)

Tangible Common Equity

309,653

298,135

262,109

Total Assets

3,477,659

3,389,125

2,927,345

Less: Intangible Assets

(3,105)

(3,153)

(3,296)

Tangible Assets

3,474,554

3,385,972

2,924,049

Tangible Common Equity/Tangible Assets

8.91

8.81

8.96

Tangible Book Value Per Share

Book Value Per Common Share

11.09

10.73

9.43

Less: Effects of Intangible Assets

(0.11)

(0.12)

Tangible Book Value Per Common Share

10.98

10.62

9.31

Return on Average Tangible Common Equity

Net Income Available to Common Shareholders

11,343

11,509

4,979

44,516

27,194

Average Shareholders' Equity

374,035

330,604

265,716

316,237

258,736

Less: Average Preferred Stock

(66,515)

(32,332)

(24,915)

Average Common Equity

307,520

298,272

265,716

291,322

258,736

Less: Effects of Average Intangible Assets

(3,132)

(3,180)

(3,323)

(3,204)

(3,395)

Average Tangible Common Equity

304,388

295,092

262,393

288,118

255,341

Return on Average Tangible Common Equity

14.78

15.47

7.55

15.45

10.65

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

2021

2020

Tangible Common Equity

Total Shareholders' Equity

379,272

367,803

290,830

279,171

265,405

Less: Preferred Stock

(66,514)

(66,515)

Common Shareholders' Equity

312,758

301,288

290,830

279,171

265,405

Less: Intangible Assets

(3,105)

(3,153)

(3,200)

(3,248)

(3,296)

Tangible Common Equity

309,653

298,135

287,630

275,923

262,109

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As of and for the Three Months Ended

As of and for the Year Ended

December 31, 2021

September 30, 2021

December 31, 2020

December 31, 2021

December 31, 2020

Adjusted Diluted Earnings Per Common Share

Net Income Available to Common Shareholders

11,343

11,509

4,979

44,516

27,194

Add: Debt Prepayment Fees

582

5,613

582

7,043

Less: Tax Impact

(151)

(1,336)

(151)

(1,676)

Net Income, Excluding Impact of Debt Prepayment Fees

11,343

11,940

9,256

44,947

32,561

Diluted Weighted Average Shares Outstanding

29,038,785

29,110,547

28,823,384

28,968,286

29,170,220

Adjusted Diluted Earnings Per Common Share

0.39

0.41

0.32

1.55

1.12

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Disclaimer

Bridgewater Bancshares Inc. published this content on 27 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 January 2022 12:18:00 UTC.