Bridgewater Bancshares, Inc. Announces Fourth Quarter 2024 Financial Results

ST. LOUIS PARK, Minn., January 29, 2025 /BUSINESS WIRE/ --

Bridgewater Bancshares, Inc. (Nasdaq: BWB) (the Company), the parent company of Bridgewater Bank (the Bank), today announced net income of $8.2 million for the fourth quarter of 2024, compared to $8.7 million for the third quarter of 2024, and $8.9 million for the fourth quarter of 2023. Earnings per diluted common share were $0.26 for the fourth quarter of 2024, compared to $0.27 for the third quarter of 2024, and $0.28 for the fourth quarter of 2023. Adjusted net income was $8.6 million for the fourth quarter of 2024, compared to $8.8 million for the third quarter of 2024, and $8.9 million for the fourth quarter of 2023. Adjusted earnings per diluted common share were $0.27 for the fourth quarter of 2024, compared to $0.28 for the third quarter of 2024, and $0.28 for the fourth quarter of 2023.

“Bridgewater finished the year with positive momentum as the fourth quarter saw robust balance sheet growth, net interest margin expansion, superb asset quality, and the closing of our acquisition of First Minnetonka City Bank,” said Chairman and Chief Executive Officer, Jerry Baack. “Core deposit growth was very strong and loan balances rebounded nicely as loan demand increased later in the year. We were also pleased to see margin expansion during the quarter as our balance sheet was well-positioned for recent Fed rate cuts.

“In December, we welcomed new team members and clients as our acquisition of First Minnetonka City Bank was completed just 107 days after it was announced last August. We believe this acquisition, coupled with the strong core deposit growth and increased liquidity generated in 2024, will allow us to be more offensive-minded and return to more normalized levels of profitable growth in 2025.”

Key Financial Measures


	As of and for the Three Months Ended									As of and for the Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2024			2024			2023			2024			2023
Per Common Share Data
Basic Earnings Per Share	$	0.26		$	0.28		$	0.28		$	1.05		$	1.29
Diluted Earnings Per Share		0.26			0.27			0.28			1.03			1.27
Adjusted Diluted Earnings Per Share ⁽¹⁾		0.27			0.28			0.28			1.05			1.27
Book Value Per Share		14.21			14.06			12.94			14.21			12.94
Tangible Book Value Per Share ⁽¹⁾		13.49			13.96			12.84			13.49			12.84

Financial Ratios
Return on Average Assets ⁽²⁾		0.68	%		0.73	%		0.77	%		0.70	%		0.89	%
Pre-Provision Net Revenue Return on Average Assets ⁽¹⁾⁽²⁾		1.05			0.96			0.96			0.98			1.15
Return on Average Shareholders' Equity ⁽²⁾		7.16			7.79			8.43			7.45			9.73
Return on Average Tangible Common Equity⁽¹⁾⁽²⁾		7.43			8.16			8.95			7.75			10.53
Net Interest Margin⁽³⁾		2.32			2.24			2.27			2.26			2.42
Core Net Interest Margin ⁽¹⁾⁽³⁾		2.25			2.16			2.21			2.19			2.34
Cost of Total Deposits		3.40			3.58			3.19			3.44			2.73
Cost of Funds		3.38			3.54			3.23			3.44			2.92
Efficiency Ratio⁽¹⁾		56.8			58.0			58.8			57.9			53.0
Noninterest Expense to Average Assets ⁽²⁾		1.40			1.33			1.37			1.35			1.32
Tangible Common Equity to Tangible Assets ⁽¹⁾		7.36			8.17			7.73			7.36			7.73
Common Equity Tier 1 Risk-based Capital Ratio (Consolidated) ⁽⁴⁾		9.08			9.79			9.16			9.08			9.16

Adjusted Financial Ratios ⁽¹⁾
Adjusted Return on Average Assets ⁽²⁾		0.71	%		0.75	%		0.77	%		0.71	%		0.89	%
Adjusted Pre-Provision Net Revenue Return on Average Assets ⁽²⁾		1.09			0.98			0.96			0.99			1.15
Adjusted Return on Average Shareholders' Equity ⁽²⁾		7.49			7.94			8.43			7.57			9.73
Adjusted Return on Average Tangible Common Equity⁽²⁾		7.82			8.34			8.95			7.90			10.53
Adjusted Efficiency Ratio		55.2			57.2			58.8			57.3			53.0
Adjusted Noninterest Expense to Average Assets ⁽²⁾		1.36			1.31			1.37			1.34			1.32

Balance Sheet and Asset Quality (dollars in thousands)
Total Assets	$	5,066,242		$	4,691,517		$	4,611,990		$	5,066,242		$	4,611,990
Total Loans, Gross		3,868,514			3,685,590			3,724,282			3,868,514			3,724,282
Deposits		4,086,767			3,747,442			3,709,948			4,086,767			3,709,948
Loan to Deposit Ratio		94.7	%		98.3	%		100.4	%		94.7	%		100.4	%
Net Loan Charge-Offs to Average Loans ⁽²⁾		0.03			0.10			0.01			0.03			0.01
Nonperforming Assets to Total Assets⁽⁵⁾		0.01			0.19			0.02			0.01			0.02
Allowance for Credit Losses to Total Loans		1.35			1.38			1.36			1.35			1.36

_______________________
(1)		Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.
(2)		Annualized.
(3)		Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of 21%.
(4)		Preliminary data. Current period subject to change prior to filings with applicable regulatory agencies.
(5)		Nonperforming assets are defined as nonaccrual loans plus 90 days past due and still accruing plus foreclosed assets.

Income Statement

Net Interest Margin and Net Interest Income

Net interest margin (on a fully tax-equivalent basis) for the fourth quarter of 2024 was 2.32%, an eight basis point increase from 2.24% in the third quarter of 2024, and a five basis point increase from 2.27% in the fourth quarter of 2023. Core net interest margin (on a fully tax-equivalent basis), a non-GAAP financial measure which excludes the impact of loan fees, was 2.25% for the fourth quarter of 2024, a nine basis point increase from 2.16% in the third quarter of 2024, and a four basis point increase from 2.21% in the fourth quarter of 2023.

Net interest margin expanded to 2.32% in the fourth quarter of 2024 primarily due to lower costs of deposits and increased balances in the securities and loan portfolios.
Excluding the stub period impact of the acquisition of FMCB during the quarter, total net interest margin (on a tax-equivalent basis) for the fourth quarter of 2024 was 2.30%.
The year-over-year expansion in margin was primarily due to increased balances in the securities and loan portfolios at higher yields, offset partially by higher deposit costs.

Net interest income was $27.0 million for the fourth quarter of 2024, an increase of $1.4 million from $25.6 million in the third quarter of 2024, and an increase of $1.7 million from $25.3 million in the fourth quarter of 2023.

The linked-quarter increase in net interest income was primarily due to decreased rates paid on deposits.
The year-over year increase in net interest income was primarily due to growth and higher yields in the securities portfolio and higher yields on loans, offset partially by growth and higher rates on deposits.

Interest income was $63.3 million for the fourth quarter of 2024, an increase of $297,000 from $63.0 million in the third quarter of 2024, and an increase of $4.8 million from $58.6 million in the fourth quarter of 2023.

The yield on interest earning assets (on a fully tax-equivalent basis) was 5.40% in the fourth quarter of 2024, compared to 5.48% in the third quarter of 2024, and 5.22% in the fourth quarter of 2023.
The linked-quarter decrease in the yield on interest earning assets was primarily due to higher cash and securities balances at lower yields and lower loan fees collected during the quarter.
The year-over-year increase in the yield on interest earning assets was primarily due to repricing of the securities and loan portfolios in the higher interest rate environment.
The aggregate loan yield decreased to 5.55% in the fourth quarter of 2024, two basis points lower than 5.57% in the third quarter of 2024, and 22 basis points higher than 5.33% in the fourth quarter of 2023.
Core loan yield remained stable at 5.47% in the fourth quarter of 2024.

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


	Three Months Ended
	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2024
Interest	5.47	%	5.47	%	5.42	%	5.31	%	5.25	%
Fees	0.08		0.10		0.08		0.07		0.08
Yield on Loans	5.55	%	5.57	%	5.50	%	5.38	%	5.33	%

Interest expense was $36.4 million for the fourth quarter of 2024, a decrease of $1.1 million from $37.4 million in the third quarter of 2024, and an increase of $3.1 million from $33.2 million in the fourth quarter of 2023.

The cost of interest bearing liabilities was 4.06% in the fourth quarter of 2024, compared to 4.27% in the third quarter of 2024, and 3.97% in the fourth quarter of 2023.
The linked-quarter decrease in the cost of interest bearing liabilities was primarily due to lower rates paid on deposits and a decrease in brokered deposit balances.
The year-over-year increase in the cost of interest bearing liabilities was primarily due to the upward repricing of the deposit portfolio in the higher rate environment, offset partially by a decrease in brokered deposit balances.

Interest expense on deposits was $32.8 million for the fourth quarter of 2024, a decrease of $1.4 million from $34.2 million in the third quarter of 2024, and an increase of $3.4 million from $29.4 million in the fourth quarter of 2023.

The cost of total deposits was 3.40% in the fourth quarter of 2024, compared to 3.58% in the third quarter of 2024, and 3.19% in the fourth quarter of 2023.
The linked-quarter decrease in the cost of total deposits was primarily due to interest rate cuts by the Federal Reserve and the reduction of higher cost funding; brokered deposits decreased during the quarter by $75.2 million, or 8.3%.
The year-over-year increase in the cost of total deposits was primarily due to the upward repricing of the deposit portfolio in the higher interest rate environment.

Provision for Credit Losses

The provision for credit losses on loans was $1.5 million for the fourth quarter of 2024, which included a $950,000 provision for non-purchase credit deteriorated (PCD) loans acquired in the FMCB transaction. The provision for credit losses on loans was $-0- for both the third quarter of 2024 and the fourth quarter of 2023.

The provision for credit losses on loans recorded in the fourth quarter of 2024 was primarily attributable to the acquisition of FMCB and growth in the loan portfolio.
The allowance for credit losses on loans to total loans was 1.35% at December 31, 2024, compared to 1.38% at September 30, 2024, and 1.36% at December 31, 2023.

The provision for credit losses for off-balance sheet credit exposures was $725,000 for the fourth quarter of 2024, compared to $-0- for the third quarter of 2024, and a negative provision of $250,000 for the fourth quarter of 2023.

A provision was recorded during the fourth quarter of 2024 due to an increase in the volume of newly originated loans with unfunded commitments in the commercial and construction and land development segments.

Noninterest Income

Noninterest income was $2.5 million for the fourth quarter of 2024, an increase of $1.0 million from $1.5 million for the third quarter of 2024, and an increase of $1.1 million from $1.4 million for the fourth quarter of 2023.

The linked-quarter increase was primarily due to higher letter of credit fees and swap fees. There was no material stub period impact from the completion of the FMCB transaction in the fourth quarter of 2024.
The year-over-year increase was primarily due to higher letter of credit fees and swap fees.

Noninterest Expense

Noninterest expense was $16.8 million for the fourth quarter of 2024, an increase of $1.1 million from $15.8 million for the third quarter of 2024 and an increase of $1.1 million from $15.7 million for the fourth quarter of 2023.

The linked-quarter increase was primarily due to increases in salaries and employee benefits and merger-related expenses.
Noninterest expense for the fourth quarter of 2024 included $488,000 of merger-related expenses, compared to $224,000 for the third quarter of 2024.
The stub period impact from the completion of the FMCB transaction to noninterest expense, excluding merger-related expenses, was $199,000 for the fourth quarter of 2024.
The year-over-year increase was primarily attributable to increases in salaries and employee benefits and merger-related expenses, offset partially by a decrease in the FDIC insurance assessment, which resulted from decreased brokered deposits and moderated loan growth.
The efficiency ratio, a non-GAAP financial measure, was 56.8% for the fourth quarter of 2024, compared to 58.0% for the third quarter of 2024, and 58.8% for the fourth quarter of 2023.
The Company had 290 full-time equivalent employees at December 31, 2024, compared to 265 at September 30, 2024, and 255 at December 31, 2023. The increase during the quarter was largely driven by the addition of 25 new employees from the acquisition of FMCB.

Income Taxes

The effective combined federal and state income tax rate was 22.0% for the fourth quarter of 2024, compared to 23.6% for the third quarter of 2024, and 21.0% for the fourth quarter of 2023.

Balance Sheet

Loans


(dollars in thousands)	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Commercial	$	497,662		$	493,403		$	518,762		$	483,069		$	464,061
Leases		44,291			—			—			—			—
Construction and Land Development		97,255			118,596			134,096			200,970			232,804
1 - 4 Family Construction		41,961			45,822			60,551			65,606			65,087
Real Estate Mortgage:
1 - 4 Family Mortgage		474,383			421,179			416,944			417,773			402,396
Multifamily		1,425,610			1,379,814			1,404,835			1,389,345			1,388,541
CRE Owner Occupied		191,248			182,239			185,988			182,589			175,783
CRE Nonowner Occupied		1,083,108			1,032,142			1,070,050			1,035,702			987,306
Total Real Estate Mortgage Loans		3,174,349			3,015,374			3,077,817			3,025,409			2,954,026
Consumer and Other		12,996			12,395			9,159			9,151			8,304
Total Loans, Gross		3,868,514			3,685,590			3,800,385			3,784,205			3,724,282
Allowance for Credit Losses on Loans		(52,277	)		(51,018	)		(51,949	)		(51,347	)		(50,494	)
Net Deferred Loan Fees		(6,801	)		(5,705	)		(6,214	)		(6,356	)		(6,573	)
Total Loans, Net	$	3,809,436		$	3,628,867		$	3,742,222		$	3,726,502		$	3,667,215

Total gross loans at December 31, 2024 were $3.87 billion, an increase of $182.9 million, or 5.0%, over total gross loans of $3.69 billion at September 30, 2024, and an increase of $144.2 million, or 3.9%, over total gross loans of $3.72 billion at December 31, 2023.

Total gross loan balances included $117.1 million of loans at amortized cost acquired in the FMCB transaction.
Excluding loans acquired in the FMCB transaction, total gross loans were up 7.1% annualized from the third quarter of 2024. The increase in the loan portfolio during the fourth quarter of 2024 was due to increased loan originations, partially offset by loan payoffs.

Deposits


(dollars in thousands)	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Noninterest Bearing Transaction Deposits	$	800,763	$	713,309	$	705,175	$	698,432	$	756,964
Interest Bearing Transaction Deposits		862,242		805,756		752,568		783,736		692,801
Savings and Money Market Deposits		1,259,503		980,345		943,994		979,773		935,091
Time Deposits		338,506		347,080		373,713		352,510		300,651
Brokered Deposits		825,753		900,952		1,032,262		992,774		1,024,441
Total Deposits	$	4,086,767	$	3,747,442	$	3,807,712	$	3,807,225	$	3,709,948

Total deposits at December 31, 2024 were $4.09 billion, an increase of $339.3 million, or 9.1%, over total deposits of $3.75 billion at September 30, 2024, and an increase of $376.8 million, or 10.2%, over total deposits of $3.71 billion at December 31, 2023.

Total deposit balances included $225.7 million of deposits acquired in the FMCB transaction as of December 31, 2024.
Core deposits, defined as total deposits excluding brokered deposits and time deposits greater than $250,000, increased $428.2 million, or 63.6% annualized, from the third quarter of 2024; core deposits, excluding deposits assumed in the FMCB transaction, increased by $210.9 million, or 31.3% annualized. Growth in core deposits was due to both increased balances of existing clients and new client acquisitions. On a year-to-date basis, core deposits increased by $559.4 million, or 22.0%. Based on the nature of the Company’s client base, core deposit balances can fluctuate from quarter to quarter, as deposit growth is not always linear.
Brokered deposits declined by $75.2 million, or 8.3%, in the fourth quarter of 2024 and declined by $198.7 million, or 19.4%, from December 31, 2023. While balances are down, we continue to use as a supplemental funding source, as needed.
Uninsured deposits were 27.7% of total deposits as of December 31, 2024, compared to 25.0% of total deposits as of September 30, 2024.

Liquidity

Total on- and off-balance sheet liquidity was $2.30 billion as of December 31, 2024, compared to $2.29 billion at September 30, 2024, and $2.23 billion at December 31, 2023.


Primary Liquidity—On-Balance Sheet	December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024				December 31, 2023
(dollars in thousands)
Cash and Cash Equivalents	$	188,884			$	167,869			$	97,237			$	105,784			$	96,594
Securities Available for Sale		768,247				664,715				601,057				633,282				604,104
Less: Pledged Securities		(289,903	)			(146,144	)			(169,095	)			(169,479	)			(170,727	)
Total Primary Liquidity	$	667,228			$	686,440			$	529,199			$	569,587			$	529,971
Ratio of Primary Liquidity to Total Deposits		16.3		%		18.3		%		13.9		%		15.0		%		14.3		%

Secondary Liquidity—Off-Balance Sheet Borrowing Capacity
Net Secured Borrowing Capacity with the FHLB	$	483,245			$	509,223			$	451,171			$	446,801			$	498,736
Net Secured Borrowing Capacity with the Federal Reserve Bank		925,798				867,955				1,015,873				1,006,010				979,448
Unsecured Borrowing Capacity with Correspondent Lenders		200,000				200,000				200,000				200,000				200,000
Secured Borrowing Capacity with Correspondent Lender		19,855				26,250				26,250				26,250				26,250
Total Secondary Liquidity	$	1,628,898			$	1,603,428			$	1,693,294			$	1,679,061			$	1,704,434
Total Primary and Secondary Liquidity	$	2,296,126			$	2,289,868			$	2,222,493			$	2,248,648			$	2,234,405
Ratio of Primary and Secondary Liquidity to Total Deposits		56.2		%		61.1		%		58.4		%		59.1		%		60.2		%

Asset Quality

Overall asset quality remained superb due to the Company’s measured risk selection, consistent underwriting standards, active credit oversight, and experienced lending and credit teams.

Annualized net charge-offs as a percentage of average loans were 0.03% for the fourth quarter of 2024, compared to 0.10% for the third quarter of 2024, and 0.01% for the fourth quarter of 2023.
At December 31, 2024, the Company’s nonperforming assets, which include nonaccrual loans, loans past due 90 days and still accruing, and foreclosed assets, were $301,000, or 0.01% of total assets, compared to $8.8 million, or 0.19% of total assets, at September 30, 2024, and $919,000, or 0.02% of total assets, at December 31, 2023.
Loans with potential weaknesses that warranted a special mention/watchlist risk rating at December 31, 2024 totaled $46.6 million, compared to $32.0 million at September 30, 2024, and $26.5 million at December 31, 2023.
Loans that warranted a substandard risk rating at December 31, 2024 totaled $21.8 million, compared to $31.6 million at September 30, 2024, and $35.9 million at December 31, 2023.

Capital

Total shareholders’ equity at December 31, 2024 was $457.9 million, an increase of $5.7 million, or 1.3%, compared to total shareholders’ equity of $452.2 million at September 30, 2024, and an increase of $32.4 million, or 7.6%, over total shareholders’ equity of $425.5 million at December 31, 2023.

The linked-quarter increase was primarily due to net income retained and an increase in unrealized gains in the derivatives portfolio, offset partially by an increase in unrealized losses in the securities portfolio and preferred stock dividends.
The year-over-year increase was due to net income retained, a decrease in unrealized losses in the securities portfolio, and an increase in unrealized gains in the derivatives portfolio, offset partially by preferred stock dividends and stock repurchases.
The Common Equity Tier 1 Risk-Based Capital Ratio was 9.08% at December 31, 2024, compared to 9.79% at September 30, 2024, and 9.16% at December 31, 2023.
Tangible common equity as a percentage of tangible assets, a non-GAAP financial measure, was 7.36% at December 31, 2024, compared to 8.17% at September 30, 2024, and 7.73% at December 31, 2023.

Tangible book value per share, a non-GAAP financial measure, was $13.49 as of December 31, 2024, a decrease of 3.4% from $13.96 as of September 30, 2024, and an increase of 5.1% from $12.84 as of December 31, 2023.

The Company did not repurchase any shares of its common stock during the fourth quarter of 2024.

The Company had $15.3 million remaining under its current share repurchase authorization at December 31, 2024.

Today, the Company also announced that its Board of Directors has 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 3, 2025 to shareholders of record of the Series A Preferred Stock at the close of business on February 14, 2025.

Conference Call and Webcast

The Company will host a conference call to discuss its fourth quarter 2024 financial results on Thursday, January 30, 2025 at 8:00 a.m. Central Time. The conference call can be accessed by dialing 844-481-2913 and requesting to join the Bridgewater Bancshares earnings call. To listen to a replay of the conference call via phone, please dial 877-344-7529 and enter access code 8644808. The replay will be available through February 6, 2025. The conference call will also be available via a live webcast on the Investor Relations section of the Company’s website, investors.bridgewaterbankmn.com, and archived for replay.

About the Company

Bridgewater Bancshares, Inc. (Nasdaq: BWB) is a St. Louis Park, Minnesota-based financial holding company founded in 2005. Its banking subsidiary, Bridgewater Bank, is a premier, full-service bank dedicated to providing responsive support and simple solutions to businesses, entrepreneurs, and successful individuals across the Twin Cities. Bridgewater offers a comprehensive suite of products and services spanning deposits, lending, and treasury management solutions. Bridgewater has also received numerous awards for its banking services and esteemed corporate culture. With total assets of $5.1 billion and nine strategically located branches as of December 31, 2024, Bridgewater is one of the largest locally-led banks in Minnesota and is committed to being the finest entrepreneurial bank. For more information, please visit www.bridgewaterbankmn.com.

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: interest rate risk, including the effects of changes in interest rates; effects on the U.S. economy resulting from the implementation of policies proposed by the new presidential administration, including tariffs, mass deportations and tax regulations; fluctuations in the values of the securities held in our securities portfolio, including as the result of changes in interest rates; business and economic conditions generally and in the financial services industry, nationally and within our market area, including the level and impact of inflation and possible recession; the effects of developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in several bank failures; credit risk and risks from concentrations (by type of borrower, geographic area, collateral and industry) within the Company’s loan portfolio or large loans to certain borrowers (including CRE loans); the overall health of the local and national real estate market; our ability to successfully manage credit risk; our ability to maintain an adequate level of allowance for credit losses on loans; new or revised accounting standards as may be adopted by state and federal regulatory agencies, the FASB, SEC or PCAOB; the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; our ability to successfully manage liquidity risk, which may increase our dependence on non-core funding sources such as brokered deposits, and negatively impact 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; the composition of our senior leadership team and our ability to attract and retain key personnel; talent and labor shortages and employee turnover; the occurrence of fraudulent activity, breaches or failures of our or our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; 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, “fintech” companies and digital asset service providers; the effectiveness of our risk management framework; the commencement, cost and outcome of litigation and other legal proceedings and regulatory actions against us; the impact of recent and future legislative and regulatory changes, including in response to prior bank failures; risks related to climate change and the negative impact it may have on our customers and their businesses; 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, acts of war or terrorism or other adverse external events, including ongoing conflicts in the Middle East and the Russian invasion of Ukraine; potential impairment to the goodwill the Company recorded in connection with acquisitions; risks associated with our acquisition of First Minnetonka City Bank, including the possibility that the merger may be more difficult or expensive to integrate than anticipated, and the effect of the merger on the Company’s customer and employee relationships and operating results; changes to U.S. or state tax laws, regulations and governmental policies concerning the Company’s general business, including changes in interpretation or prioritization and changes in response to prior bank failures; 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. The Company undertakes 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.

Bridgewater Bancshares, Inc. and Subsidiaries Financial Highlights *(dollars in thousands, except share data)*

	As of and for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)	2024			2024			2024			2024			2023
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Income Statement
Net Interest Income	$	26,967		$	25,599		$	24,996		$	24,631		$	25,314
Provision for (Recovery of) Credit Losses		2,175			—			600			750			(250	)
Noninterest Income		2,533			1,522			1,763			1,550			1,409
Noninterest Expense		16,812			15,760			15,539			15,189			15,740
Net Income		8,204			8,675			8,115			7,831			8,873
Net Income Available to Common Shareholders		7,190			7,662			7,101			6,818			7,859

Per Common Share Data
Basic Earnings Per Share	$	0.26		$	0.28		$	0.26		$	0.25		$	0.28
Diluted Earnings Per Share		0.26			0.27			0.26			0.24			0.28
Adjusted Diluted Earnings Per Share ⁽¹⁾		0.27			0.28			0.26			0.24			0.28
Book Value Per Share		14.21			14.06			13.63			13.30			12.94
Tangible Book Value Per Share ⁽¹⁾		13.49			13.96			13.53			13.20			12.84
Basic Weighted Average Shares Outstanding		27,459,433			27,382,798			27,386,713			27,691,401			27,870,430
Diluted Weighted Average Shares Outstanding		28,055,532			27,904,910			27,748,184			28,089,805			28,238,056
Shares Outstanding at Period End		27,552,449			27,425,690			27,348,049			27,589,827			27,748,965

Financial Ratios
Return on Average Assets ⁽²⁾		0.68	%		0.73	%		0.70	%		0.69	%		0.77		%
Pre-Provision Net Revenue Return on Average Assets ⁽¹⁾⁽²⁾		1.05			0.96			0.94			0.95			0.96
Return on Average Shareholders' Equity ⁽²⁾		7.16			7.79			7.49			7.35			8.43
Return on Average Tangible Common Equity ⁽¹⁾⁽²⁾		7.43			8.16			7.80			7.64			8.95
Net Interest Margin⁽³⁾		2.32			2.24			2.24			2.24			2.27
Core Net Interest Margin ⁽¹⁾⁽³⁾		2.25			2.16			2.17			2.18			2.21
Cost of Total Deposits		3.40			3.58			3.46			3.32			3.19
Cost of Funds		3.38			3.54			3.49			3.34			3.23
Efficiency Ratio⁽¹⁾		56.8			58.0			58.7			58.2			58.8
Noninterest Expense to Average Assets ⁽²⁾		1.40			1.33			1.35			1.33			1.37

Adjusted Financial Ratios ⁽¹⁾
Adjusted Return on Average Assets ⁽²⁾		0.71	%		0.75	%		0.70	%		0.69	%		0.77		%
Adjusted Pre-Provision Net Revenue Return on Average Assets ⁽²⁾		1.09			0.98			0.94			0.95			0.96
Adjusted Return on Average Shareholders' Equity ⁽²⁾		7.49			7.94			7.49			7.35			8.43
Adjusted Return on Average Tangible Common Equity⁽²⁾		7.82			8.34			7.80			7.64			8.95
Adjusted Efficiency Ratio		55.2			57.2			58.7			58.2			58.8
Adjusted Noninterest Expense to Average Assets ⁽²⁾		1.36			1.31			1.35			1.33			1.37

Balance Sheet
Total Assets	$	5,066,242		$	4,691,517		$	4,687,035		$	4,723,109		$	4,611,990
Total Loans, Gross		3,868,514			3,685,590			3,800,385			3,784,205			3,724,282
Deposits		4,086,767			3,747,442			3,807,712			3,807,225			3,709,948
Total Shareholders' Equity		457,935			452,200			439,241			433,611			425,515
Loan to Deposit Ratio		94.7	%		98.3	%		99.8	%		99.4	%		100.4		%
Core Deposits to Total Deposits ⁽⁴⁾		76.0			71.5			67.9			69.3			68.7
Uninsured Deposits to Total Deposits		27.7			25.0			22.5			26.0			24.3

Asset Quality
Net Loan Charge-Offs to Average Loans⁽²⁾		0.03	%		0.10	%		0.00	%		0.00	%		0.01		%
Nonperforming Assets to Total Assets ⁽⁵⁾		0.01			0.19			0.01			0.01			0.02
Allowance for Credit Losses to Total Loans		1.35			1.38			1.37			1.36			1.36


	As of and for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)	2024			2024			2024			2024			2023
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Capital Ratios (Consolidated) ⁽⁶⁾
Tier 1 Leverage Ratio		9.45	%		9.75	%		9.66	%		9.66	%		9.57	%
Common Equity Tier 1 Risk-based Capital Ratio		9.08			9.79			9.41			9.21			9.16
Tier 1 Risk-based Capital Ratio		10.64			11.44			11.03			10.83			10.79
Total Risk-based Capital Ratio		13.76			14.62			14.16			14.00			13.97
Tangible Common Equity to Tangible Assets ⁽¹⁾		7.36			8.17			7.90			7.72			7.73

_______________________
(1)		Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.
(2)		Annualized.
(3)		Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of 21%.
(4)		Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000.
(5)		Nonperforming assets are defined as nonaccrual loans plus 90 days past due and still accruing plus foreclosed assets.
(6)		Preliminary data. Current period subject to change prior to filings with applicable regulatory agencies.

Bridgewater Bancshares, Inc. and Subsidiaries Consolidated Balance Sheets *(dollars in thousands, except share data)*

	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Assets
Cash and Cash Equivalents	$	229,760		$	191,859		$	134,093		$	143,355		$	128,562
Bank-Owned Certificates of Deposit		4,377			—			—			—			—
Securities Available for Sale, at Fair Value		768,247			664,715			601,057			633,282			604,104
Loans, Net of Allowance for Credit Losses		3,809,436			3,628,867			3,742,222			3,726,502			3,667,215
Federal Home Loan Bank (FHLB) Stock, at Cost		19,297			18,626			15,844			17,195			17,097
Premises and Equipment, Net		49,533			47,777			47,902			48,299			48,886
Foreclosed Assets		—			434			—			20			—
Accrued Interest		17,711			16,750			16,944			16,696			16,697
Goodwill		11,982			2,626			2,626			2,626			2,626
Other Intangible Assets, Net		7,850			163			171			180			188
Bank-Owned Life Insurance		44,646			38,219			35,090			34,778			34,477
Other Assets		103,403			81,481			91,086			100,176			92,138
Total Assets	$	5,066,242		$	4,691,517		$	4,687,035		$	4,723,109		$	4,611,990

Liabilities and Equity
Liabilities
Deposits:
Noninterest Bearing	$	800,763		$	713,309		$	705,175		$	698,432		$	756,964
Interest Bearing		3,286,004			3,034,133			3,102,537			3,108,793			2,952,984
Total Deposits		4,086,767			3,747,442			3,807,712			3,807,225			3,709,948
Notes Payable		13,750			13,750			13,750			13,750			13,750
FHLB Advances		359,500			349,500			287,000			317,000			319,500
Subordinated Debentures, Net of Issuance Costs		79,670			79,574			79,479			79,383			79,288
Accrued Interest Payable		4,008			3,458			3,999			4,405			5,282
Other Liabilities		64,612			45,593			55,854			67,735			58,707
Total Liabilities		4,608,307			4,239,317			4,247,794			4,289,498			4,186,475

Shareholders' Equity
Preferred Stock- $0.01 par value; Authorized 10,000,000
Preferred Stock - Issued and Outstanding 27,600 Series A shares ($2,500 liquidation preference) at December 31, 2024 (unaudited), September 30, 2024 (unaudited), June 30, 2024 (unaudited), March 31, 2024 (unaudited), and December 31, 2023		66,514			66,514			66,514			66,514			66,514
Common Stock- $0.01 par value; Authorized 75,000,000
Common Stock - Issued and Outstanding 27,552,449 at December 31, 2024 (unaudited), 27,425,690 at September 30, 2024 (unaudited), 27,348,049 at June 30, 2024 (unaudited), 27,589,827 at March 31, 2024 (unaudited), and 27,748,965 at December 31, 2023		276			274			273			276			277
Additional Paid-In Capital		95,088			94,597			93,205			95,069			96,320
Retained Earnings		309,421			302,231			294,569			287,468			280,650
Accumulated Other Comprehensive Loss		(13,364	)		(11,416	)		(15,320	)		(15,716	)		(18,246	)
Total Shareholders' Equity		457,935			452,200			439,241			433,611			425,515
Total Liabilities and Equity	$	5,066,242		$	4,691,517		$	4,687,035		$	4,723,109		$	4,611,990

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,			June 30,			March 31,			December 31,			December 31,			December 31,
	2024			2024			2024			2024			2023			2024			2023
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Interest Income
Loans, Including Fees	$	51,870		$	51,895		$	51,385		$	49,581		$	49,727		$	204,731		$	191,402
Investment Securities		9,109			8,725			8,177			7,916			7,283			33,927			26,245
Other		2,345			2,407			1,316			1,172			1,543			7,240			4,708
Total Interest Income		63,324			63,027			60,878			58,669			58,553			245,898			222,355


Interest Expense
Deposits		32,810			34,187			31,618			30,190			29,448			128,805			96,045
Federal Funds Purchased		42			2			853			304			268			1,201			8,521
Notes Payable		275			296			296			295			299			1,162			1,143
FHLB Advances		2,229			1,942			2,125			2,258			2,220			8,554			7,489
Subordinated Debentures		1,001			1,001			990			991			1,004			3,983			3,983
Total Interest Expense		36,357			37,428			35,882			34,038			33,239			143,705			117,181

Net Interest Income		26,967			25,599			24,996			24,631			25,314			102,193			105,174
Provision for (Recovery of) Credit Losses		2,175			—			600			750			(250	)		3,525			(175	)

Net Interest Income After Provision for (Recovery of) Credit Losses		24,792			25,599			24,396			23,881			25,564			98,668			105,349

Noninterest Income
Customer Service Fees		394			373			366			342			359			1,475			1,455
Net Gain (Loss) on Sales of Securities		—			(28	)		320			93			(27	)		385			(33	)
Net Gain on Sales of Foreclosed Assets		62			—			—			—			—			62			—
Letter of Credit Fees		849			424			387			316			418			1,976			1,746
Debit Card Interchange Fees		145			152			155			141			152			593			595
Swap Fees		521			26			—			—			—			547			—
Bank-Owned Life Insurance		362			352			312			301			268			1,327			992
FHLB Prepayment Income		—			—			—			—			—			—			792
Other Income		200			223			223			357			239			1,003			946
Total Noninterest Income		2,533			1,522			1,763			1,550			1,409			7,368			6,493

Noninterest Expense
Salaries and Employee Benefits		10,605			9,851			9,675			9,433			9,615			39,564			36,538
Occupancy and Equipment		1,181			1,069			1,092			1,057			1,062			4,399			4,447
FDIC Insurance Assessment		609			750			725			875			1,050			2,959			3,690
Data Processing		445			368			472			412			424			1,697			1,574
Professional and Consulting Fees		989			1,149			852			889			782			3,879			3,081
Derivative Collateral Fees		426			381			528			486			573			1,821			1,900
Information Technology and Telecommunications		877			840			812			796			812			3,325			2,889
Marketing and Advertising		479			367			317			322			324			1,485			1,129
Intangible Asset Amortization		52			9			8			9			9			78			100
Other Expense		1,149			976			1,058			910			1,089			4,093			3,972
Total Noninterest Expense		16,812			15,760			15,539			15,189			15,740			63,300			59,320

Income Before Income Taxes		10,513			11,361			10,620			10,242			11,233			42,736			52,522
Provision for Income Taxes		2,309			2,686			2,505			2,411			2,360			9,911			12,562
Net Income		8,204			8,675			8,115			7,831			8,873			32,825			39,960
Preferred Stock Dividends		(1,014	)		(1,013	)		(1,014	)		(1,013	)		(1,014	)		(4,054	)		(4,054	)
Net Income Available to Common Shareholders	$	7,190		$	7,662		$	7,101		$	6,818		$	7,859		$	28,771		$	35,906

Earnings Per Share
Basic	$	0.26		$	0.28		$	0.26		$	0.25		$	0.28		$	1.05		$	1.29
Diluted		0.26			0.27			0.26			0.24			0.28			1.03			1.27

Bridgewater Bancshares, Inc. and Subsidiaries Analysis of Average Balances, Yields and Rates *(dollars in thousands, except per share data)* *(Unaudited)*

	For the Three Months Ended
	December 31, 2024							September 30, 2024							December 31, 2023
	Average		Interest			Yield/		Average		Interest			Yield/		Average		Interest			Yield/
(dollars in thousands)	Balance		& Fees			Rate		Balance		& Fees			Rate		Balance		& Fees			Rate
Interest Earning Assets:
Cash Investments	$	181,904	$	1,968		4.30	%	$	157,114	$	1,971		4.99	%	$	106,275	$	1,233		4.60	%
Investment Securities:
Taxable Investment Securities		723,038		8,814		4.85			668,429		8,406		5.00			600,856		7,007		4.63
Tax-Exempt Investment Securities⁽¹⁾		28,681		374		5.19			31,496		402		5.08			29,172		350		4.75
Total Investment Securities		751,719		9,188		4.86			699,925		8,808		5.01			630,028		7,357		4.63
Loans ⁽¹⁾⁽²⁾		3,730,532		52,078		5.55			3,721,654		52,118		5.57			3,726,126		50,022		5.33
Federal Home Loan Bank Stock		18,686		377		8.02			16,828		436		10.31			17,999		310		6.85
Total Interest Earning Assets		4,682,841		63,611		5.40	%		4,595,521		63,333		5.48	%		4,480,428		58,922		5.22	%
Noninterest Earning Assets		105,195							108,283							87,018
Total Assets	$	4,788,036						$	4,703,804						$	4,567,446
Interest Bearing Liabilities:
Deposits:
Interest Bearing Transaction Deposits	$	836,155	$	8,962		4.26	%	$	804,161	$	9,369		4.63	%	$	719,630	$	7,546		4.16	%
Savings and Money Market Deposits		1,073,194		10,795		4.00			939,665		10,262		4.34			911,835		9,003		3.92
Time Deposits		336,917		3,650		4.31			355,050		3,918		4.39			268,140		2,330		3.45
Brokered Deposits		875,015		9,403		4.27			989,712		10,638		4.28			1,009,166		10,569		4.16
Total Interest Bearing Deposits		3,121,281		32,810		4.18			3,088,588		34,187		4.40			2,908,771		29,448		4.02
Federal Funds Purchased		3,290		42		5.09			141		2		5.72			18,932		268		5.62
Notes Payable		13,750		275		7.95			13,750		296		8.58			13,750		299		8.62
FHLB Advances		347,652		2,229		2.55			309,120		1,942		2.50			303,467		2,220		2.90
Subordinated Debentures		79,616		1,001		5.00			79,519		1,001		5.01			79,233		1,004		5.02
Total Interest Bearing Liabilities		3,565,589		36,357		4.06	%		3,491,118		37,428		4.27	%		3,324,153		33,239		3.97	%
Noninterest Bearing Liabilities:
Noninterest Bearing Transaction Deposits		718,227							710,192							753,430
Other Noninterest Bearing Liabilities		48,271							59,417							72,074
Total Noninterest Bearing Liabilities		766,498							769,609							825,504
Shareholders' Equity		455,949							443,077							417,789
Total Liabilities and Shareholders' Equity	$	4,788,036						$	4,703,804						$	4,567,446
Net Interest Income / Interest Rate Spread				27,254		1.35	%				25,905		1.21	%				25,683		1.25	%
Net Interest Margin ⁽³⁾						2.32	%						2.24	%						2.27	%
Taxable Equivalent Adjustment:
Tax-Exempt Investment Securities and Loans				(287	)						(306	)						(369	)
Net Interest Income			$	26,967						$	25,599						$	25,314

_______________________
(1)		Interest income and average rates for tax-exempt investment securities and loans are presented on a tax-equivalent basis, assuming a statutory federal income tax rate of 21%.
(2)		Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.
(3)		Net interest margin includes the tax equivalent adjustment and represents the annualized results of: (i) the difference between interest income on interest earning assets and the interest expense on interest bearing liabilities, divided by (ii) average interest earning assets for the period.

Bridgewater Bancshares, Inc. and Subsidiaries Analysis of Average Balances, Yields and Rates *(dollars in thousands, except per share data)* *(Unaudited)*

	For the Year Ended
	December 31, 2024							December 31, 2023
	Average		Interest			Yield/		Average		Interest			Yield/
(dollars in thousands)	Balance		& Fees			Rate		Balance		& Fees			Rate
Interest Earning Assets:
Cash Investments	$	124,205	$	5,690		4.58	%	$	77,759	$	3,170		4.08	%
Investment Securities:
Taxable Investment Securities		668,012		32,681		4.89			577,102		25,199		4.37
Tax-Exempt Investment Securities⁽¹⁾		30,864		1,577		5.11			29,004		1,325		4.57
Total Investment Securities		698,876		34,258		4.90			606,106		26,524		4.38
Loans ⁽¹⁾⁽²⁾		3,738,260		205,646		5.50			3,699,252		192,679		5.21
Federal Home Loan Bank Stock		18,256		1,550		8.49			21,249		1,538		7.24
Total Interest Earning Assets		4,579,597		247,144		5.40	%		4,404,366		223,911		5.08	%
Noninterest Earning Assets		103,547							86,438
Total Assets	$	4,683,144						$	4,490,804
Interest Bearing Liabilities:
Deposits:
Interest Bearing Transaction Deposits	$	776,768	$	34,294		4.41	%	$	650,028	$	23,379		3.60	%
Savings and Money Market Deposits		956,300		39,297		4.11			922,799		30,639		3.32
Time Deposits		342,582		14,585		4.26			263,161		7,064		2.68
Brokered Deposits		963,676		40,629		4.22			909,662		34,963		3.84
Total Interest Bearing Deposits		3,039,326		128,805		4.24			2,745,650		96,045		3.50
Federal Funds Purchased		21,493		1,201		5.59			169,645		8,521		5.02
Notes Payable		13,750		1,162		8.45			13,750		1,143		8.31
FHLB Advances		320,497		8,554		2.67			238,000		7,489		3.15
Subordinated Debentures		79,473		3,983		5.01			79,090		3,983		5.04
Total Interest Bearing Liabilities		3,474,539		143,705		4.14	%		3,246,135		117,181		3.61	%
Noninterest Bearing Liabilities:
Noninterest Bearing Transaction Deposits		705,247							768,428
Other Noninterest Bearing Liabilities		62,595							65,763
Total Noninterest Bearing Liabilities		767,842							834,191
Shareholders' Equity		440,763							410,478
Total Liabilities and Shareholders' Equity	$	4,683,144						$	4,490,804
Net Interest Income / Interest Rate Spread				103,439		1.26	%				106,730		1.47	%
Net Interest Margin ⁽³⁾						2.26	%						2.42	%
Taxable Equivalent Adjustment:
Tax-Exempt Investment Securities and Loans				(1,246	)						(1,556	)
Net Interest Income			$	102,193						$	105,174

Bridgewater Bancshares, Inc. and Subsidiaries Asset Quality Summary *(dollars in thousands)* *(unaudited)*

	As of and for the Three Months Ended																				As of and for the Year Ended
	December 31,				September 30,				June 30,				March 31,				December 31,				December 31,				December 31,
(dollars in thousands)	2024				2024				2024				2024				2023				2024				2023
Allowance for Credit Losses
Balance at Beginning of Period	$	51,018			$	51,949			$	51,347			$	50,494			$	50,585			$	50,494			$	47,996
Impact of Adopting CECL		—				—				—				—				—				—				650
Day 1 PCD Allowance		114				—				—				—				—				114				—
Provision for Credit Losses ⁽¹⁾		1,450				—				600				850				—				2,900				2,050
Charge-offs		(317	)			(937	)			(10	)			(2	)			(95	)			(1,266	)			(224	)
Recoveries		12				6				12				5				4				35				22
Net Charge-offs	$	(305	)		$	(931	)		$	2			$	3			$	(91	)		$	(1,231	)		$	(202	)
Balance at End of Period		52,277				51,018				51,949				51,347				50,494				52,277				50,494
Allowance for Credit Losses to Total Loans		1.35		%		1.38		%		1.37		%		1.36		%		1.36		%		1.35		%		1.36		%

_______________________
(1)		Includes a day 1 provision for credit losses for non-PCD loans acquired in the FMCB transanction of $950,000 for the three and twelve months ended December 31, 2024.


	As of and for the Three Months Ended												As of and for the Year Ended
	December 31,		September 30,		June 30,		March 31,			December 31,			December 31,		December 31,
(dollars in thousands)	2024		2024		2024		2024			2023			2024		2023
Provision for Credit Losses on Loans	$	1,450	$	—	$	600	$	850		$	—		$	2,900	$	2,050
Provision for (Recovery of) Credit Losses for Off-Balance Sheet Credit Exposures		725		—		—		(100	)		(250	)		625		(2,225	)
Provision for (Recovery of) Credit Losses	$	2,175	$	—	$	600	$	750		$	(250	)	$	3,525	$	(175	)


	As of and for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)	2024			2024			2024			2024			2023
Selected Asset Quality Data
Loans 30-89 Days Past Due	$	1,291		$	65		$	502		$	—		$	15,110
Loans 30-89 Days Past Due to Total Loans		0.03	%		0.00	%		0.01	%		0.00	%		0.41	%
Nonperforming Loans	$	301		$	8,378		$	678		$	249		$	919
Nonperforming Loans to Total Loans		0.01	%		0.23	%		0.02	%		0.01	%		0.02	%
Nonaccrual Loans to Total Loans		0.01			0.23			0.02			0.01			0.02
Nonaccrual Loans and Loans Past Due 90 Days and Still Accruing to Total Loans		0.01			0.23			0.02			0.01			0.02
Foreclosed Assets	$	—		$	434		$	—		$	20		$	—
Nonperforming Assets ⁽¹⁾		301			8,812			678			269			919
Nonperforming Assets to Total Assets ⁽¹⁾		0.01	%		0.19	%		0.01	%		0.01	%		0.02	%
Net Loan Charge-Offs (Annualized) to Average Loans		0.03			0.10			0.00			0.00			0.01
Special Mention/Watchlist Risk Rated Loans	$	46,581		$	31,991		$	30,436		$	21,624		$	26,485
Substandard Risk Rated Loans		21,791			31,637			33,908			33,829			35,858

_______________________
(1)		Nonperforming assets are defined as nonaccrual loans plus 90 days past due and still accruing plus foreclosed assets.

Bridgewater Bancshares, Inc. and Subsidiaries Non-GAAP Financial Measures *(dollars in thousands)* *(unaudited)*

	For the Three Months Ended																				For the Year Ended
	December 31,				September 30,				June 30,				March 31,				December 31,				December 31,				December 31,
(dollars in thousands)	2024				2024				2024				2024				2023				2024				2023

Pre-Provision Net Revenue
Noninterest Income	$	2,533			$	1,522			$	1,763			$	1,550			$	1,409			$	7,368			$	6,493
Less: (Gain) Loss on Sales of Securities		—				28				(320	)			(93	)			27				(385	)			33
Less: FHLB Advance Prepayment Income		—				—				—				—				—				—				(792	)
Total Operating Noninterest Income		2,533				1,550				1,443				1,457				1,436				6,983				5,734
Plus: Net Interest Income		26,967				25,599				24,996				24,631				25,314				102,193				105,174
Net Operating Revenue	$	29,500			$	27,149			$	26,439			$	26,088			$	26,750			$	109,176			$	110,908

Noninterest Expense	$	16,812			$	15,760			$	15,539			$	15,189			$	15,740			$	63,300			$	59,320
Total Operating Noninterest Expense	$	16,812			$	15,760			$	15,539			$	15,189			$	15,740			$	63,300			$	59,320

Pre-Provision Net Revenue	$	12,688			$	11,389			$	10,900			$	10,899			$	11,010			$	45,876			$	51,588

Plus:
Non-Operating Revenue Adjustments		—				(28	)			320				93				(27	)			385				759
Less:
Provision (Recovery of) for Credit Losses		2,175				—				600				750				(250	)			3,525				(175	)
Provision for Income Taxes		2,309				2,686				2,505				2,411				2,360				9,911				12,562
Net Income	$	8,204			$	8,675			$	8,115			$	7,831			$	8,873			$	32,825			$	39,960

Average Assets	$	4,788,036			$	4,703,804			$	4,646,517			$	4,592,838			$	4,567,446			$	4,683,144			$	4,490,804
Pre-Provision Net Revenue Return on Average Assets		1.05		%		0.96		%		0.94		%		0.95		%		0.96		%		0.98		%		1.15		%

Adjusted Pre-Provision Net Revenue
Net Operating Revenue	$	29,500			$	27,149			$	26,439			$	26,088			$	26,750			$	109,176			$	110,908

Noninterest Expense	$	16,812			$	15,760			$	15,539			$	15,189			$	15,740			$	63,300			$	59,320
Less: Merger-related Expenses		(488	)			(224	)			—				—				—				(712	)			—
Adjusted Total Operating Noninterest Expense	$	16,324			$	15,536			$	15,539			$	15,189			$	15,740			$	62,588			$	59,320

Adjusted Pre-Provision Net Revenue	$	13,176			$	11,613			$	10,900			$	10,899			$	11,010			$	46,588			$	51,588
Adjusted Pre-Provision Net Revenue Return on Average Assets		1.09		%		0.98		%		0.94		%		0.95		%		0.96		%		0.99		%		1.15		%

Core Net Interest Margin
Net Interest Income (Tax-equivalent Basis)	$	27,255			$	25,905			$	25,288			$	24,992			$	25,683			$	103,440			$	106,730
Less: Loan Fees		(747	)			(968	)			(767	)			(608	)			(751	)			(3,090	)			(3,604	)
Core Net Interest Income	$	26,508			$	24,937			$	24,521			$	24,384			$	24,932			$	100,350			$	103,126

Average Interest Earning Assets	$	4,682,841			$	4,595,521			$	4,545,920			$	4,492,756			$	4,480,428			$	4,579,597			$	4,404,366
Core Net Interest Margin		2.25		%		2.16		%		2.17		%		2.18		%		2.21		%		2.19		%		2.34		%

Efficiency Ratio
Noninterest Expense	$	16,812			$	15,760			$	15,539			$	15,189			$	15,740			$	63,300			$	59,320
Less: Amortization of Intangible Assets		(52	)			(9	)			(8	)			(9	)			(9	)			(78	)			(100	)
Adjusted Noninterest Expense	$	16,760			$	15,751			$	15,531			$	15,180			$	15,731			$	63,222			$	59,220

Net Interest Income	$	26,967			$	25,599			$	24,996			$	24,631			$	25,314			$	102,193			$	105,174
Noninterest Income		2,533				1,522				1,763				1,550				1,409				7,368				6,493
Less: Gain (Loss) on Sales of Securities		—				28				(320	)			(93	)			27				(385	)			33
Adjusted Operating Revenue	$	29,500			$	27,149			$	26,439			$	26,088			$	26,750			$	109,176			$	111,700
Efficiency Ratio		56.8		%		58.0		%		58.7		%		58.2		%		58.8		%		57.9		%		53.0		%

Adjusted Efficiency Ratio
Noninterest Expense	$	16,812			$	15,760			$	15,539			$	15,189			$	15,740			$	63,300			$	59,320
Less: Amortization of Intangible Assets		(52	)			(9	)			(8	)			(9	)			(9	)			(78	)			(100	)
Less: Merger-related Expenses		(488	)			(224	)			—				—				—				(712	)			—
Adjusted Noninterest Expense	$	16,272			$	15,527			$	15,531			$	15,180			$	15,731			$	62,510			$	59,220

Net Interest Income	$	26,967			$	25,599			$	24,996			$	24,631			$	25,314			$	102,193			$	105,174
Noninterest Income		2,533				1,522				1,763				1,550				1,409				7,368				6,493
Less: Gain (Loss) on Sales of Securities		—				28				(320	)			(93	)			27				(385	)			33
Adjusted Operating Revenue	$	29,500			$	27,149			$	26,439			$	26,088			$	26,750			$	109,176			$	111,700
Adjusted Efficiency Ratio		55.2		%		57.2		%		58.7		%		58.2		%		58.8		%		57.3		%		53.0		%

Bridgewater Bancshares, Inc. and Subsidiaries Non-GAAP Financial Measures *(dollars in thousands)* *(unaudited)*

	For the Three Months Ended																					For the Year Ended
	December 31,				September 30,				June 30,				March 31,				December 31,					December 31,				December 31,
(dollars in thousands)	2024				2024				2024				2024				2023					2024				2023

Adjusted Noninterest Expense to Average Assets (Annualized)
Noninterest Expense	$	16,812			$	15,760			$	15,539			$	15,189			$	15,740			$	63,300			$	59,320
Less: Merger-related Expenses		(488	)			(224	)			—				—				—				(712	)			—
Adjusted Noninterest Expense	$	16,324			$	15,536			$	15,539			$	15,189			$	15,740			$	62,588			$	59,320

Average Assets	$	4,788,036			$	4,703,804			$	4,646,517			$	4,592,838			$	4,567,446			$	4,683,144			$	4,490,804
Adjusted Noninterest Expense to Average Assets (Annualized)		1.36		%		1.31		%		1.35		%		1.33		%		1.37		%		1.34		%		1.32		%

Tangible Common Equity and Tangible Common Equity/Tangible Assets
Total Shareholders' Equity	$	457,935			$	452,200			$	439,241			$	433,611			$	425,515
Less: Preferred Stock		(66,514	)			(66,514	)			(66,514	)			(66,514	)			(66,514	)
Total Common Shareholders' Equity		391,421				385,686				372,727				367,097				359,001
Less: Intangible Assets		(19,832	)			(2,789	)			(2,797	)			(2,806	)			(2,814	)
Tangible Common Equity	$	371,589			$	382,897			$	369,930			$	364,291			$	356,187

Total Assets	$	5,066,242			$	4,691,517			$	4,687,035			$	4,723,109			$	4,611,990
Less: Intangible Assets		(19,832	)			(2,789	)			(2,797	)			(2,806	)			(2,814	)
Tangible Assets	$	5,046,410			$	4,688,728			$	4,684,238			$	4,720,303			$	4,609,176
Tangible Common Equity/Tangible Assets		7.36		%		8.17		%		7.90		%		7.72		%		7.73		%

Tangible Book Value Per Share
Book Value Per Common Share	$	14.21			$	14.06			$	13.63			$	13.30			$	12.94
Less: Effects of Intangible Assets		(0.72	)			(0.10	)			(0.10	)			(0.10	)			(0.10	)
Tangible Book Value Per Common Share	$	13.49			$	13.96			$	13.53			$	13.20			$	12.84

Return on Average Tangible Common Equity
Net Income Available to Common Shareholders	$	7,190			$	7,662			$	7,101			$	6,818			$	7,859			$	28,771			$	35,906

Average Shareholders' Equity	$	455,949			$	443,077			$	435,585			$	428,248			$	417,789			$	440,763			$	410,478
Less: Average Preferred Stock		(66,514	)			(66,514	)			(66,514	)			(66,514	)			(66,514	)			(66,514	)			(66,514	)
Average Common Equity		389,435				376,563				369,071				361,734				351,275				374,249				343,964
Less: Effects of Average Intangible Assets		(4,412	)			(2,794	)			(2,802	)			(2,811	)			(2,819	)			(3,207	)			(2,847	)
Average Tangible Common Equity	$	385,023			$	373,769			$	366,269			$	358,923			$	348,456			$	371,042			$	341,117
Return on Average Tangible Common Equity		7.43		%		8.16		%		7.80		%		7.64		%		8.95		%		7.75		%		10.53		%

Adjusted Diluted Earnings Per Common Share
Net Income Available to Common Shareholders	$	7,190			$	7,662			$	7,101			$	6,818			$	7,859			$	28,771			$	35,906
Add: Merger-related Expenses		488				224				—				—				—				712				—
Less: Tax Impact		(107	)			(53	)			—				—				—				(165	)			—
Net Income Available to Common Shareholders, Excluding Impact of Merger-related Expenses	$	7,571			$	7,833			$	7,101			$	6,818			$	7,859			$	29,318			$	35,906

Diluted Weighted Average Shares Outstanding		28,055,532				27,904,910				27,748,184				28,089,805				28,238,056				27,943,343				28,315,587
Adjusted Diluted Earnings Per Common Share	$	0.27			$	0.28			$	0.26			$	0.24			$	0.28			$	1.05			$	1.27

Adjusted Return on Average Assets
Net Income	$	8,204			$	8,675			$	8,115			$	7,831			$	8,873			$	32,825			$	39,960
Add: Merger-related Expenses		488				224				—				—				—				712				—
Less: Tax Impact		(107	)			(53	)			—				—				—				(165	)			—
Net Income, Excluding Impact of Merger-related Expenses	$	8,585			$	8,846			$	8,115			$	7,831			$	8,873			$	33,372			$	39,960

Average Assets	$	4,788,036			$	4,703,804			$	4,646,517			$	4,592,838			$	4,567,446			$	4,683,144			$	4,490,804
Adjusted Return on Average Assets		0.71		%		0.75		%		0.70		%		0.69		%		0.77		%		0.71		%		0.89		%

Adjusted Return on Average Shareholders' Equity
Net Income, Excluding Impact of Merger-related Expenses	$	8,585			$	8,846			$	8,115			$	7,831			$	8,873			$	33,372			$	39,960

Average Shareholders' Equity	$	455,949			$	443,077			$	435,585			$	428,248			$	417,789			$	440,763			$	410,478
Adjusted Return on Average Shareholders' Equity		7.49		%		7.94		%		7.49		%		7.35		%		8.43		%		7.57		%		9.73		%

Adjusted Return on Average Tangible Common Equity
Net Income Available to Common Shareholders, Excluding Impact of Merger-related Expenses	$	7,571			$	7,833			$	7,101			$	6,818			$	7,859			$	29,318			$	35,906

Average Tangible Common Equity	$	385,023			$	373,769			$	366,269			$	358,923			$	348,456			$	371,042			$	341,117
Adjusted Return on Average Tangible Common Equity		7.82		%		8.34		%		7.80		%		7.64		%		8.95		%		7.90		%		10.53		%

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