EX-99.1 2 bwb-20240723xex99d1.htm EX-99.1

Exhibit 99.1

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Media Contact: Jessica Stejskal | SVP Marketing Jessica.Stejskal@bwbmn.com | 952.893.6860 | Investor Contact: Justin Horstman | VP Investor Relations Justin.Horstman@bwbmn.com | 952.542.5169

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July 24, 2024

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Bridgewater Bancshares, Inc. Announces Second Quarter 2024 Net Income
of $8.1 Million, $0.26 Diluted Earnings Per Common Share

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Second Quarter 2024 Highlights

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| ● | Tangible book value per share(1) of $13.53 for the second quarter of 2024, an increase of $0.32, or 9.8% annualized, compared to $13.20 for the first quarter of 2024.

| ● | Net interest income increased $365,000, or 1.5%, from the first quarter of 2024, the first quarter-over-quarter increase since the third quarter of 2022.

| ● | Net interest margin (on a fully tax-equivalent basis) of 2.24% for the second quarter of 2024, in line with the first quarter of 2024.

| ● | Loan-to-deposit ratio of 99.8%, compared to 99.4% at March 31, 2024.

| ● | Gross loans increased $16.2 million, or 1.7% annualized, from the first quarter of 2024. On a year-to-date basis, gross loans increased $76.1 million, or 4.1% annualized.

| ● | Deposits increased by $487,000, or 0.1% annualized, from the first quarter of 2024. On a year-to-date basis, deposits increased by $97.8 million, or 5.3% annualized, and core deposits(2) increased by $37.6 million, or 3.0% annualized.

| ● | Efficiency ratio(1) of 58.7%, compared to 58.2% for the first quarter of 2024.

| ● | A provision for credit losses on loans of $600,000 was recorded in the second quarter of 2024. The allowance for credit losses on loans to total loans was 1.37% at June 30, 2024, compared to 1.36% at March 31, 2024.

| ● | Annualized net loan charge-offs as a percentage of average loans of 0.00% for the second quarter of 2024, in line with the first quarter of 2024.

| ● | Nonperforming assets to total assets of 0.01% at both June 30, 2024 and March 31, 2024.

| ● | Repurchased 252,707 shares of common stock at a weighted average price of $11.48 per share, for a total of $2.9 million.

(1) | Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.

(2) | C ore deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000.

Page 1 of 17

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St. Louis Park, MN – Bridgewater Bancshares, Inc. (Nasdaq: BWB) (the Company), the parent company of Bridgewater Bank (the Bank), today announced net income of $8.1 million for the second quarter of 2024, compared to $7.8 million for the first quarter of 2024, and $9.8 million for the second quarter of 2023. Earnings per diluted common share were $0.26 for the second quarter of 2024, compared to $0.24 for the first quarter of 2024, and $0.31 for the second quarter of 2023.

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“Bridgewater saw positive profitability momentum during the second quarter as total revenue and net interest income both increased for the first time since the third quarter of 2022,” said Chairman and Chief Executive Officer, Jerry Baack. “We were pleased to see net interest margin hold steady as loan portfolio repricing increased. Meanwhile, the pace of balance sheet growth year-to-date remained on track with expectations, despite more moderated growth in the second quarter.

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“Asset quality was superb once again as our Twin Cities-focused commercial real estate and multifamily portfolios continued to perform well despite a challenging environment. In addition, our unique corporate culture and responsive service model continued to shine as Bridgewater was recognized as a top workplace by the Star Tribune. Our ongoing focus on executing on our business model, serving our clients, and driving shareholder value over time, have now resulted in 30 consecutive quarters of tangible book value per share growth.”

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Key Financial Measures

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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of and for the Three Months Ended |  | ​ | As of and for the Six Months Ended |
​ | ​ | June 30, | ​ | March 31, | ​ | June 30, |  | ​ | June 30, | ​ | June 30, |
​ |  | 2024 | ​ | 2024 | ​ | 2023 |  |  | 2024 |  | 2023 |
Per Common Share Data | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Basic Earnings Per Share | ​ | $ | 0.26 | ​ | $ | 0.25 | ​ | $ | 0.32 | ​ | ​ | $ | 0.51 | ​ | $ | 0.70 | ​
Diluted Earnings Per Share | ​ | ​ | 0.26 | ​ | ​ | 0.24 | ​ | ​ | 0.31 | ​ | ​ | ​ | 0.50 | ​ | ​ | 0.69 | ​
Book Value Per Share | ​ | ​ | 13.63 | ​ | ​ | 13.30 | ​ | ​ | 12.25 | ​ | ​ | ​ | 13.63 | ​ | ​ | 12.25 | ​
Tangible Book Value Per Share (1) | ​ | ​ | 13.53 | ​ | ​ | 13.20 | ​ | ​ | 12.15 | ​ | ​ | ​ | 13.53 | ​ | ​ | 12.15 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Financial Ratios | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Return on Average Assets (2) | ​ | ​ | 0.70 | % | ​ | 0.69 | % | ​ | 0.88 | % | ​ | ​ | 0.69 | % | ​ | 0.97 | %
Pre-Provision Net Revenue Return on Average Assets (1)(2) | ​ | ​ | 0.94 | ​ | ​ | 0.95 | ​ | ​ | 1.16 | ​ | ​ | ​ | 0.95 | ​ | ​ | 1.32 | ​
Return on Average Shareholders' Equity (2) | ​ | ​ | 7.49 | ​ | ​ | 7.35 | ​ | ​ | 9.69 | ​ | ​ | ​ | 7.42 | ​ | ​ | 10.69 | ​
Return on Average Tangible Common Equity (1)(2) | ​ | ​ | 7.80 | ​ | ​ | 7.64 | ​ | ​ | 10.48 | ​ | ​ | ​ | 7.72 | ​ | ​ | 11.68 | ​
Net Interest Margin (3) | ​ | ​ | 2.24 | ​ | ​ | 2.24 | ​ | ​ | 2.40 | ​ | ​ | ​ | 2.24 | ​ | ​ | 2.55 | ​
Core Net Interest Margin (1)(3) | ​ | ​ | 2.17 | ​ | ​ | 2.18 | ​ | ​ | 2.31 | ​ | ​ | ​ | 2.18 | ​ | ​ | 2.46 | ​
Cost of Total Deposits | ​ | ​ | 3.46 | ​ | ​ | 3.32 | ​ | ​ | 2.66 | ​ | ​ | ​ | 3.39 | ​ | ​ | 2.34 | ​
Cost of Funds | ​ | ​ | 3.49 | ​ | ​ | 3.34 | ​ | ​ | 2.91 | ​ | ​ | ​ | 3.42 | ​ | ​ | 2.66 | ​
Efficiency Ratio (1) | ​ | ​ | 58.7 | ​ | ​ | 58.2 | ​ | ​ | 52.3 | ​ | ​ | ​ | 58.5 | ​ | ​ | 48.9 | ​
Noninterest Expense to Average Assets (2) | ​ | ​ | 1.35 | ​ | ​ | 1.33 | ​ | ​ | 1.28 | ​ | ​ | ​ | 1.34 | ​ | ​ | 1.29 | ​
Tangible Common Equity to Tangible Assets (1) | ​ | ​ | 7.90 | ​ | ​ | 7.72 | ​ | ​ | 7.39 | ​ | ​ | ​ | 7.90 | ​ | ​ | 7.39 | ​
Common Equity Tier 1 Risk-based Capital Ratio (Consolidated) (4) | ​ | ​ | 9.41 | ​ | ​ | 9.21 | ​ | ​ | 8.72 | ​ | ​ | ​ | 9.41 | ​ | ​ | 8.72 | ​
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Balance Sheet and Asset Quality (dollars in thousands) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total Assets | ​ | $ | 4,687,035 | ​ | $ | 4,723,109 | ​ | $ | 4,603,185 | ​ | ​ | $ | 4,687,035 | ​ | $ | 4,603,185 | ​
Total Loans, Gross | ​ | ​ | 3,800,385 | ​ | ​ | 3,784,205 | ​ | ​ | 3,736,211 | ​ | ​ | ​ | 3,800,385 | ​ | ​ | 3,736,211 | ​
Deposits | ​ | ​ | 3,807,712 | ​ | ​ | 3,807,225 | ​ | ​ | 3,577,932 | ​ | ​ | ​ | 3,807,712 | ​ | ​ | 3,577,932 | ​
Loan to Deposit Ratio | ​ | ​ | 99.8 | % | ​ | 99.4 | % | ​ | 104.4 | % | ​ | ​ | 99.8 | % | ​ | 104.4 | %
Net Loan Charge-Offs (Recoveries) to Average Loans (2) | ​ | ​ | 0.00 | ​ | ​ | 0.00 | ​ | ​ | 0.00 | ​ | ​ | ​ | 0.00 | ​ | ​ | 0.00 | ​
Nonperforming Assets to Total Assets (5) | ​ | ​ | 0.01 | ​ | ​ | 0.01 | ​ | ​ | 0.02 | ​ | ​ | ​ | 0.01 | ​ | ​ | 0.02 | ​
Allowance for Credit Losses to Total Loans | ​ | ​ | 1.37 | ​ | ​ | 1.36 | ​ | ​ | 1.36 | ​ | ​ | ​ | 1.37 | ​ | ​ | 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.

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Income Statement

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Net Interest Margin and Net Interest Income

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Net interest margin (on a fully tax-equivalent basis) for the second quarter of 2024 was 2.24%, stable with 2.24% in the first quarter of 2024, and a 16 basis point decline from 2.40% in the second 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 2.17% for the second quarter of 2024, a one basis point decline from 2.18% in the first quarter of 2024, and a 14 basis point decline from 2.31% in the second quarter of 2023.

| ● | The linked-quarter margin remained stable.

| ● | The year-over-year decline in the margin was primarily due to higher funding costs, offset partially by higher earning asset yields.

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Net interest income was $25.0 million for the second quarter of 2024, an increase of $365,000 from $24.6 million in the first quarter of 2024, and a decrease of $876,000 from $25.9 million in the second quarter of 2023.

| ● | The linked-quarter increase in net interest income was primarily due to growth and higher yields in the loan and securities portfolios.

| ● | The year-over year decrease in net interest income was primarily due to higher rates paid on deposits and growth in the rising interest rate environment, which outpaced the repricing of the loan and securities portfolios.

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Interest income was $60.9 million for the second quarter of 2024, an increase of $2.2 million from $58.7 million in the first quarter of 2024, and an increase of $5.9 million from $55.0 million in the second quarter of 2023.

| ● | The yield on interest earning assets (on a fully tax-equivalent basis) was 5.41% in the second quarter of 2024, compared to 5.28% in the first quarter of 2024 and 5.06% in the second quarter of 2023.

| ● | The linked-quarter increase in the yield on interest earning assets was primarily due to growth and repricing of the loan portfolio at yields accretive to the existing portfolio.

| ● | The year-over-year increase in the yield on interest earning assets was primarily due to the purchase of higher yielding securities and the growth and repricing of the loan and securities portfolios in the rising interest rate environment.

| ● | Loan interest income and loan fees remain the primary contributing factors to the changes in the yield on interest earning assets. The aggregate loan yield increased to 5.50% in the second quarter of 2024, 12 basis points higher than 5.38% in the first quarter of 2024, and 31 basis points higher than 5.19% in the second quarter of 2023.

| ● | The core loan yield continues to rise as new loan originations and the existing portfolio reprice in the higher rate environment.

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

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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended
​ | ​ | June 30, 2024 | ​ | ​ | March 30, 2024 | ​ | ​ | December 31, 2023 | ​ | ​ | September 30, 2023 | ​ | ​ | June 30, 2023 | ​ | ​
Interest | ​ | 5.42 | % | ​ | 5.31 | % | ​ | 5.25 | % | ​ | 5.16 | % | ​ | 5.09 | % | ​
Fees | ​ | 0.08 | ​ | ​ | 0.07 | ​ | ​ | 0.08 | ​ | ​ | 0.10 | ​ | ​ | 0.10 | ​ | ​
Yield on Loans | ​ | 5.50 | % | ​ | 5.38 | % | ​ | 5.33 | % | ​ | 5.26 | % | ​ | 5.19 | % | ​

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Interest expense was $35.9 million for the second quarter of 2024, an increase of $1.8 million from $34.0 million in the first quarter of 2024, and an increase of $6.8 million from $29.1 million in the second quarter of 2023.

| ● | The cost of interest bearing liabilities was 4.19% in the second quarter of 2024, compared to 4.03% in the first quarter of 2024 and 3.59% in the second quarter of 2023.

| ● | The linked-quarter increase in the cost of interest bearing liabilities was primarily due to higher rates paid on deposits and an increase in the utilization of overnight borrowings.

| ● | The year-over-year increase in the cost of interest bearing liabilities was primarily due to continued deposit repricing in the higher rate environment.

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Interest expense on deposits was $31.6 million for the second quarter of 2024, an increase of $1.4 million from $30.2 million in the first quarter of 2024, and an increase of $8.6 million from $23.0 million in the second quarter of 2023.

| ● | The cost of total deposits was 3.46% in the second quarter of 2024, compared to 3.32% in the first quarter of 2024 and 2.66% in the second quarter of 2023.

| ● | The linked-quarter increase in the cost of total deposits was primarily due to continued client demand for higher interest rates, increased competition, and changes in the mix of deposits.

| ● | The year-over-year increase in the cost of total deposits was primarily due to upward repricing of the deposit portfolio in the higher interest rate environment.

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Provision for Credit Losses

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The provision for credit losses on loans was $600,000 for the second quarter of 2024, compared to $850,000 for the first quarter of 2024 and $550,000 for the second quarter of 2023.

| ● | The provision for credit losses on loans recorded in the second quarter of 2024 was primarily attributable to changes in the mix of the loan portfolio.

| ● | The allowance for credit losses on loans to total loans was 1.37% at June 30, 2024, compared to 1.36% at both March 31, 2024 and June 30, 2023.

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There was no provision for credit losses for off-balance sheet credit exposures for the second quarter of 2024, compared to a negative provision of $100,000 for the first quarter of 2024 and a negative provision of $500,000 for the second quarter of 2023.

| ● | No provision was recorded during the second quarter of 2024 due to unfunded commitments remaining stable as the migration to funded loans was offset by the volume of newly originated loans with unfunded commitments.

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Noninterest Income

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Noninterest income was $1.8 million for the second quarter of 2024, an increase of $213,000 from $1.6 million for the first quarter of 2024 and an increase of $348,000 from $1.4 million for the second quarter of 2023.

| ● | The linked-quarter increase was primarily due to a net gain on sale of securities and higher letter of credit fees, offset partially by a decrease in other income.

| ● | The year-over-year increase was primarily due to a net gain on sale of securities and an increase in the cash surrender value of bank-owned life insurance.

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Noninterest Expense

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Noninterest expense was $15.5 million for the second quarter of 2024, an increase of $350,000 from $15.2 million for the first quarter of 2024 and an increase of $1.3 million from $14.3 million for the second quarter of 2023.

| ● | The linked-quarter increase was primarily due to increases in salaries and employee benefits and other expense, offset partially by a decrease in the FDIC insurance assessment.

| ● | The year-over-year increase was primarily attributable to increases in salaries and employee benefits, higher derivative collateral fees and information technology and telecommunications, offset partially by a decrease in the FDIC insurance assessment.

| ● | The efficiency ratio, a non-GAAP financial measure, was 58.7% for the second quarter of 2024, compared to 58.2% for the first quarter of 2024, and 52.3% for the second quarter of 2023.

| ● | The Company had 258 full-time equivalent employees at June 30, 2024, compared to 255 employees at March 31, 2024, and 253 employees at June 30, 2023.

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Income Taxes

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The effective combined federal and state income tax rate for the second quarter of 2024 was 23.6%, a slight increase from 23.5% for the first quarter of 2024 and an increase from 24.3% for the second quarter of 2023.

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Balance Sheet

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Loans

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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(dollars in thousands) | ​ | June 30, 2024 | ​ | March 31, 2024 | ​ | December 31, 2023 | ​ | September 30, 2023 | ​ | June 30, 2023 | ​
Commercial | ​ | $ | 518,762 | ​ | $ | 483,069 | ​ | $ | 464,061 | ​ | $ | 459,854 | ​ | $ | 460,061 | ​
Construction and Land Development | ​ | ​ | 134,096 | ​ | ​ | 200,970 | ​ | ​ | 232,804 | ​ | ​ | 294,818 | ​ | ​ | 351,069 | ​
1 - 4 Family Construction | ​ | ​ | 60,551 | ​ | ​ | 65,606 | ​ | ​ | 65,087 | ​ | ​ | 64,463 | ​ | ​ | 69,648 | ​
Real Estate Mortgage: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
1 - 4 Family Mortgage | ​ | ​ | 416,944 | ​ | ​ | 417,773 | ​ | ​ | 402,396 | ​ | ​ | 404,716 | ​ | ​ | 400,708 | ​
Multifamily | ​ | ​ | 1,404,835 | ​ | ​ | 1,389,345 | ​ | ​ | 1,388,541 | ​ | ​ | 1,378,669 | ​ | ​ | 1,314,524 | ​
CRE Owner Occupied | ​ | ​ | 185,988 | ​ | ​ | 182,589 | ​ | ​ | 175,783 | ​ | ​ | 159,485 | ​ | ​ | 159,088 | ​
CRE Nonowner Occupied | ​ | ​ | 1,070,050 | ​ | ​ | 1,035,702 | ​ | ​ | 987,306 | ​ | ​ | 951,263 | ​ | ​ | 971,532 | ​
Total Real Estate Mortgage Loans | ​ |  | 3,077,817 | ​ |  | 3,025,409 | ​ |  | 2,954,026 | ​ |  | 2,894,133 | ​ |  | 2,845,852 | ​
Consumer and Other | ​ | ​ | 9,159 | ​ | ​ | 9,151 | ​ | ​ | 8,304 | ​ | ​ | 9,003 | ​ | ​ | 9,581 | ​
Total Loans, Gross | ​ |  | 3,800,385 | ​ |  | 3,784,205 | ​ |  | 3,724,282 | ​ |  | 3,722,271 | ​ |  | 3,736,211 | ​
Allowance for Credit Losses on Loans | ​ | ​ | (51,949) | ​ | ​ | (51,347) | ​ | ​ | (50,494) | ​ | ​ | (50,585) | ​ | ​ | (50,701) | ​
Net Deferred Loan Fees | ​ | ​ | (6,214) | ​ | ​ | (6,356) | ​ | ​ | (6,573) | ​ | ​ | (7,222) | ​ | ​ | (7,718) | ​
Total Loans, Net | ​ | $ | 3,742,222 | ​ | $ | 3,726,502 | ​ | $ | 3,667,215 | ​ | $ | 3,664,464 | ​ | $ | 3,677,792 | ​

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Total gross loans at June 30, 2024 were $3.80 billion, an increase of $16.2 million, or 1.7% annualized, over total gross loans of $3.78 billion at March 31, 2024, and an increase of $64.2 million, or 1.7%, over total gross loans of $3.74 billion at June 30, 2023.

| ● | The increase in the loan portfolio during the second quarter of 2024 was due to increased loan originations, partially offset by elevated loan payoffs. The loan portfolio composition remained relatively stable during the quarter with the exception of the construction and land development portfolio which decreased.

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Deposits

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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(dollars in thousands) | ​ | June 30, 2024 | ​ | March 31, 2024 | ​ | December 31, 2023 | ​ | September 30, 2023 | ​ | June 30, 2023 | ​
Noninterest Bearing Transaction Deposits | ​ | $ | 705,175 | ​ | $ | 698,432 | ​ | $ | 756,964 | ​ | $ | 754,297 | ​ | $ | 751,217 | ​
Interest Bearing Transaction Deposits | ​ | ​ | 752,568 | ​ | ​ | 783,736 | ​ | ​ | 692,801 | ​ | ​ | 780,863 | ​ | ​ | 719,488 | ​
Savings and Money Market Deposits | ​ | ​ | 943,994 | ​ | ​ | 979,773 | ​ | ​ | 935,091 | ​ | ​ | 872,534 | ​ | ​ | 860,613 | ​
Time Deposits | ​ | ​ | 373,713 | ​ | ​ | 352,510 | ​ | ​ | 300,651 | ​ | ​ | 265,737 | ​ | ​ | 271,783 | ​
Brokered Deposits | ​ | ​ | 1,032,262 | ​ | ​ | 992,774 | ​ | ​ | 1,024,441 | ​ | ​ | 1,002,078 | ​ | ​ | 974,831 | ​
Total Deposits | ​ | $ | 3,807,712 | ​ | $ | 3,807,225 | ​ | $ | 3,709,948 | ​ | $ | 3,675,509 | ​ | $ | 3,577,932 | ​

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Total deposits at June 30, 2024 were $3.81 billion, an increase of $487,000, over total deposits of $3.81 billion at March 31, 2024, and an increase of $229.8 million, or 6.4%, over total deposits of $3.58 billion at June 30, 2023.

| ● | Core deposits, defined as total deposits excluding brokered deposits and time deposits greater than $250,000, decreased $52.7 million from the first quarter of 2024. Growth in core deposits can fluctuate from quarter to quarter, as deposit growth is not always linear. On a year-to-date basis, core deposits increased by $37.6 million, or 3.0% annualized.

| ● | Brokered deposits continue to be used as a supplemental funding source, as needed.

| ● | Uninsured deposits were 23% of total deposits as of June 30, 2024, compared to 26% of total deposits as of March 31, 2024.

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Liquidity

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Total on- and off-balance sheet liquidity was $2.22 billion as of June 30, 2024, compared to $2.25 billion at March 31, 2024 and $1.96 billion at June 30, 2023.

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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Primary Liquidity—On-Balance Sheet |  | June 30, 2024 |  | March 31, 2024 |  | December 31, 2023 |  | September 30, 2023 | ​ | June 30, 2023 | ​
(dollars in thousands) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ | ​
Cash and Cash Equivalents | ​ | $ | 97,237 | ​ | $ | 105,784 | ​ | $ | 96,594 | ​ | $ | 77,617 | ​ | $ | 138,618 | ​
Securities Available for Sale | ​ |  | 601,057 | ​ |  | 633,282 | ​ |  | 604,104 | ​ |  | 553,076 | ​ |  | 538,220 | ​
Less: Pledged Securities | ​ | ​ | (169,095) | ​ | ​ | (169,479) | ​ | ​ | (170,727) | ​ | ​ | (164,277) | ​ | ​ | (236,206) | ​
Total Primary Liquidity | ​ | $ | 529,199 | ​ | $ | 569,587 | ​ | $ | 529,971 | ​ | $ | 466,416 | ​ | $ | 440,632 | ​
Ratio of Primary Liquidity to Total Deposits | ​ |  | 13.9 | % |  | 15.0 | % |  | 14.3 | % |  | 12.7 | % | ​ | 12.3 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Secondary Liquidity—Off-Balance Sheet Borrowing Capacity |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ | ​
Net Secured Borrowing Capacity with the FHLB | ​ | $ | 451,171 | ​ | $ | 446,801 | ​ | $ | 498,736 | ​ | $ | 516,501 | ​ | $ | 400,792 | ​
Net Secured Borrowing Capacity with the Federal Reserve Bank | ​ |  | 1,015,873 | ​ |  | 1,006,010 | ​ |  | 979,448 | ​ |  | 1,022,128 | ​ |  | 986,644 | ​
Unsecured Borrowing Capacity with Correspondent Lenders | ​ |  | 200,000 | ​ |  | 200,000 | ​ |  | 200,000 | ​ |  | 150,000 | ​ |  | 108,000 | ​
Secured Borrowing Capacity with Correspondent Lender | ​ | ​ | 26,250 | ​ | ​ | 26,250 | ​ | ​ | 26,250 | ​ | ​ | 26,250 | ​ | ​ | 26,250 | ​
Total Secondary Liquidity | ​ | $ | 1,693,294 | ​ | $ | 1,679,061 | ​ | $ | 1,704,434 | ​ | $ | 1,714,879 | ​ | $ | 1,521,686 | ​
Total Primary and Secondary Liquidity | ​ | $ | 2,222,493 | ​ | $ | 2,248,648 | ​ | $ | 2,234,405 | ​ | $ | 2,181,295 | ​ | $ | 1,962,318 | ​
Ratio of Primary and Secondary Liquidity to Total Deposits | ​ |  | 58.4 | % |  | 59.1 | % |  | 60.2 | % |  | 59.3 | % |  | 54.8 | %

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Asset Quality

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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 0.00% for each of the second quarter of 2024, the first quarter of 2024 and the second quarter of 2023.

| ● | At June 30, 2024, the Company’s nonperforming assets, which include nonaccrual loans, loans past due 90 days and still accruing, and foreclosed assets, were $678,000, or 0.01% of total assets, compared to $269,000, or 0.01%, of total assets at March 31, 2024, and $778,000, or 0.02%, of total assets at June 30, 2023.

| ● | Loans with potential weaknesses that warranted a watchlist risk rating at June 30, 2024 totaled $30.4 million, compared to $21.6 million at March 31, 2024, and $27.2 million at June 30, 2023.

| ● | Loans that warranted a substandard risk rating at June 30, 2024 totaled $33.9 million, compared to $33.8 million at March 31, 2024, and $33.8 million at June 30, 2023.

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Capital

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Total shareholders’ equity at June 30, 2024 was $439.2 million, an increase of $5.6 million, or 1.3%, compared to total shareholders’ equity of $433.6 million at March 31, 2024, and an increase of $30.1 million, or 7.4%, over total shareholders’ equity of $409.1 million at June 30, 2023.

| ● | The linked-quarter increase was primarily due to net income retained, offset partially by preferred stock dividends and stock repurchases.

| ● | The year-over-year increase was due to net income retained and a decrease in unrealized losses in the securities portfolio, offset partially by a decrease in unrealized gains in the derivatives portfolio, preferred stock dividends, and stock repurchases.

| ● | The Common Equity Tier 1 Risk-Based Capital Ratio was 9.41% at June 30, 2024, compared to 9.21% at March 31, 2024 and 8.72% at June 30, 2023.

| ● | Tangible common equity as a percentage of tangible assets, a non-GAAP financial measure, was 7.90% at June 30, 2024, compared to 7.72% at March 31, 2024, and 7.39% at June 30, 2023.

​

Tangible book value per share, a non-GAAP financial measure, was $13.53 as of June 30, 2024, an increase of 2.4% from $13.20 as of March 31, 2024, and an increase of 11.4% from $12.15 as of June 30, 2023.

| ● | The Company has increased tangible book value per share each of the past 30 quarters.

​

During the second quarter of 2024, the Company repurchased 252,707 shares of its common stock. Shares were repurchased at a weighted average price of $11.48 per share, for a total of $2.9 million.

| ● | The Company has $15.3 million remaining under its current share repurchase authorization.

| ● | On July 23, 2024, the Board of Directors ​​​​​​​​​​​extended the expiration date of the current share repurchase authorization from August 16, 2024 to August ​20, 2025.

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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 September 3, 2024 to shareholders of record of the Series A Preferred Stock at the close of business on August 15, 2024.

​

Conference Call and Webcast

​

The Company will host a conference call to discuss its second quarter 2024 financial results on Thursday, July 25, 2024 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 3041856. The replay will be available through August 1, 2024. 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. 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 successful individuals. By pairing a range of deposit, lending, and treasury management solutions with a responsive service model, Bridgewater has seen continuous growth and profitability. With total assets of $4.7 billion and seven branches as of June 30, 2024, 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.

​

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 sustained high interest rates; 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 high rates 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 recent bank failures; loan concentrations in our portfolio; 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; the concentration of large loans to certain borrowers; the concentration of large deposits from certain clients, 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 high rates of employee turnover; the occurrence of fraudulent activity, breaches or failures of

Page 7 of 17

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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; 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 in response to the recent bank failures; risks related to climate change and the negative impact it may have on our customers and their businesses; the imposition of 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 the ongoing Israeli-Palestinian conflict and the Russian invasion of Ukraine; potential impairment to the goodwill the Company recorded in connection with our past acquisition; changes to U.S. or state tax laws, regulations and guidance; potential changes in federal policy and at regulatory agencies as a result of the upcoming 2024 presidential election; 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.

​

Page 8 of 17

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​

Bridgewater Bancshares, Inc. and Subsidiaries
Financial Highlights

(dollars in thousands, except share data)

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of and for the Three Months Ended | ​
​ | ​ | June 30, | ​ | March 30, | ​ | December 31, | ​ | September 30, |  | June 30, |
(dollars in thousands) |  | 2024 |  | 2024 |  | 2023 |  | 2023 |  | 2023 |
Income Statement | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net Interest Income | ​ | $ | 24,996 | ​ | $ | 24,631 | ​ | $ | 25,314 | ​ | $ | 25,421 | ​ | $ | 25,872 | ​
Provision for (Recovery of) Credit Losses | ​ | ​ | 600 | ​ | ​ | 750 | ​ | ​ | (250) | ​ | ​ | (600) | ​ | ​ | 50 | ​
Noninterest Income | ​ | ​ | 1,763 | ​ | ​ | 1,550 | ​ | ​ | 1,409 | ​ | ​ | 1,726 | ​ | ​ | 1,415 | ​
Noninterest Expense | ​ | ​ | 15,539 | ​ | ​ | 15,189 | ​ | ​ | 15,740 | ​ | ​ | 15,237 | ​ | ​ | 14,274 | ​
Net Income | ​ | ​ | 8,115 | ​ | ​ | 7,831 | ​ | ​ | 8,873 | ​ | ​ | 9,629 | ​ | ​ | 9,816 | ​
Net Income Available to Common Shareholders | ​ | ​ | 7,101 | ​ | ​ | 6,818 | ​ | ​ | 7,859 | ​ | ​ | 8,616 | ​ | ​ | 8,802 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Per Common Share Data | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Basic Earnings Per Share | ​ | $ | 0.26 | ​ | $ | 0.25 | ​ | $ | 0.28 | ​ | $ | 0.31 | ​ | $ | 0.32 | ​
Diluted Earnings Per Share | ​ | ​ | 0.26 | ​ | ​ | 0.24 | ​ | ​ | 0.28 | ​ | ​ | 0.30 | ​ | ​ | 0.31 | ​
Book Value Per Share | ​ | ​ | 13.63 | ​ | ​ | 13.30 | ​ | ​ | 12.94 | ​ | ​ | 12.47 | ​ | ​ | 12.25 | ​
Tangible Book Value Per Share (1) | ​ | ​ | 13.53 | ​ | ​ | 13.20 | ​ | ​ | 12.84 | ​ | ​ | 12.37 | ​ | ​ | 12.15 | ​
Basic Weighted Average Shares Outstanding | ​ | ​ | 27,386,713 | ​ | ​ | 27,691,401 | ​ | ​ | 27,870,430 | ​ | ​ | 27,943,409 | ​ | ​ | 27,886,425 | ​
Diluted Weighted Average Shares Outstanding | ​ | ​ | 27,748,184 | ​ | ​ | 28,089,805 | ​ | ​ | 28,238,056 | ​ | ​ | 28,311,778 | ​ | ​ | 28,198,739 | ​
Shares Outstanding at Period End | ​ | ​ | 27,348,049 | ​ | ​ | 27,589,827 | ​ | ​ | 27,748,965 | ​ | ​ | 28,015,505 | ​ | ​ | 27,973,995 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Financial Ratios | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Return on Average Assets (2) | ​ | ​ | 0.70 | % | ​ | 0.69 | % | ​ | 0.77 | % | ​ | 0.85 | % | ​ | 0.88 | %
Pre-Provision Net Revenue Return on Average Assets (1)(2) | ​ | ​ | 0.94 | ​ | ​ | 0.95 | ​ | ​ | 0.96 | ​ | ​ | 1.01 | ​ | ​ | 1.16 | ​
Return on Average Shareholders' Equity (2) | ​ | ​ | 7.49 | ​ | ​ | 7.35 | ​ | ​ | 8.43 | ​ | ​ | 9.23 | ​ | ​ | 9.69 | ​
Return on Average Tangible Common Equity (1)(2) | ​ | ​ | 7.80 | ​ | ​ | 7.64 | ​ | ​ | 8.95 | ​ | ​ | 9.92 | ​ | ​ | 10.48 | ​
Net Interest Margin (3) | ​ | ​ | 2.24 | ​ | ​ | 2.24 | ​ | ​ | 2.27 | ​ | ​ | 2.32 | ​ | ​ | 2.40 | ​
Core Net Interest Margin (1)(3) | ​ | ​ | 2.17 | ​ | ​ | 2.18 | ​ | ​ | 2.21 | ​ | ​ | 2.24 | ​ | ​ | 2.31 | ​
Cost of Total Deposits | ​ | ​ | 3.46 | ​ | ​ | 3.32 | ​ | ​ | 3.19 | ​ | ​ | 2.99 | ​ | ​ | 2.66 | ​
Cost of Funds | ​ | ​ | 3.49 | ​ | ​ | 3.34 | ​ | ​ | 3.23 | ​ | ​ | 3.10 | ​ | ​ | 2.91 | ​
Efficiency Ratio (1) | ​ | ​ | 58.7 | ​ | ​ | 58.2 | ​ | ​ | 58.8 | ​ | ​ | 56.1 | ​ | ​ | 52.3 | ​
Noninterest Expense to Average Assets (2) | ​ | ​ | 1.35 | ​ | ​ | 1.33 | ​ | ​ | 1.37 | ​ | ​ | 1.34 | ​ | ​ | 1.28 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Balance Sheet | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total Assets | ​ | $ | 4,687,035 | ​ | $ | 4,723,109 | ​ | $ | 4,611,990 | ​ | $ | 4,557,070 | ​ | $ | 4,603,185 | ​
Total Loans, Gross | ​ | ​ | 3,800,385 | ​ | ​ | 3,784,205 | ​ | ​ | 3,724,282 | ​ | ​ | 3,722,271 | ​ | ​ | 3,736,211 | ​
Deposits | ​ | ​ | 3,807,712 | ​ | ​ | 3,807,225 | ​ | ​ | 3,709,948 | ​ | ​ | 3,675,509 | ​ | ​ | 3,577,932 | ​
Total Shareholders' Equity | ​ | ​ | 439,241 | ​ | ​ | 433,611 | ​ | ​ | 425,515 | ​ | ​ | 415,960 | ​ | ​ | 409,126 | ​
Loan to Deposit Ratio | ​ | ​ | 99.8 | % | ​ | 99.4 | % | ​ | 100.4 | % | ​ | 101.3 | % | ​ | 104.4 | %
Core Deposits to Total Deposits (4) | ​ | ​ | 67.9 | ​ | ​ | 69.3 | ​ | ​ | 68.7 | ​ | ​ | 70.3 | ​ | ​ | 70.3 | ​
Uninsured Deposits to Total Deposits | ​ | ​ | 22.5 | ​ | ​ | 26.0 | ​ | ​ | 24.3 | ​ | ​ | 22.2 | ​ | ​ | 22.1 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Asset Quality |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​
Net Loan Charge-Offs to Average Loans (2) | ​ | ​ | 0.00 | % | ​ | 0.00 | % | ​ | 0.01 | % | ​ | 0.01 | % | ​ | 0.00 | %
Nonperforming Assets to Total Assets (5) | ​ | ​ | 0.01 | ​ | ​ | 0.01 | ​ | ​ | 0.02 | ​ | ​ | 0.02 | ​ | ​ | 0.02 | ​
Allowance for Credit Losses to Total Loans | ​ | ​ | 1.37 |  | ​ | 1.36 |  | ​ | 1.36 |  | ​ | 1.36 |  | ​ | 1.36 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Capital Ratios (Consolidated) (6) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tier 1 Leverage Ratio | ​ | ​ | 9.66 | % | ​ | 9.66 | % | ​ | 9.57 | % | ​ | 9.62 | % | ​ | 9.47 | %
Common Equity Tier 1 Risk-based Capital Ratio | ​ | ​ | 9.41 | ​ | ​ | 9.21 | ​ | ​ | 9.16 | ​ | ​ | 9.07 | ​ | ​ | 8.72 | ​
Tier 1 Risk-based Capital Ratio | ​ | ​ | 11.03 | ​ | ​ | 10.83 | ​ | ​ | 10.79 | ​ | ​ | 10.69 | ​ | ​ | 10.33 | ​
Total Risk-based Capital Ratio | ​ | ​ | 14.16 | ​ | ​ | 14.00 | ​ | ​ | 13.97 | ​ | ​ | 13.88 | ​ | ​ | 13.50 | ​
Tangible Common Equity to Tangible Assets (1) | ​ | ​ | 7.90 | ​ | ​ | 7.72 | ​ | ​ | 7.73 | ​ | ​ | 7.61 | ​ | ​ | 7.39 | ​

(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%.

Page 9 of 17

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(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.

Page 10 of 17

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​

Bridgewater Bancshares, Inc. and Subsidiaries

Consolidated Balance Sheets

(dollars in thousands, except share data)

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | March 31, | ​ | December 31, | ​ | September 30, | ​ | June 30,
​ | ​ | 2024 |  | 2024 |  | 2023 |  | 2023 |  | 2023
​ | ​ | (Unaudited) | ​ | (Unaudited) | ​ | ​ | ​ | ​ | (Unaudited) | ​ | (Unaudited)
Assets | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cash and Cash Equivalents | ​ | $ | 134,093 | ​ | $ | 143,355 | ​ | $ | 128,562 | ​ | $ | 124,358 | ​ | $ | 177,101
Bank-Owned Certificates of Deposit | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 1,225 | ​ |  | 1,225
Securities Available for Sale, at Fair Value | ​ |  | 601,057 | ​ |  | 633,282 | ​ |  | 604,104 | ​ |  | 553,076 | ​ |  | 538,220
Loans, Net of Allowance for Credit Losses | ​ |  | 3,742,222 | ​ | ​ | 3,726,502 | ​ | ​ | 3,667,215 | ​ |  | 3,664,464 | ​ |  | 3,677,792
Federal Home Loan Bank (FHLB) Stock, at Cost | ​ |  | 15,844 | ​ |  | 17,195 | ​ |  | 17,097 | ​ |  | 17,056 | ​ |  | 21,557
Premises and Equipment, Net | ​ |  | 47,902 | ​ |  | 48,299 | ​ |  | 48,886 | ​ |  | 49,331 | ​ |  | 49,710
Accrued Interest | ​ |  | 16,944 | ​ |  | 16,696 | ​ |  | 16,697 | ​ |  | 15,182 | ​ |  | 13,822
Goodwill | ​ |  | 2,626 | ​ |  | 2,626 | ​ |  | 2,626 | ​ |  | 2,626 | ​ |  | 2,626
Other Intangible Assets, Net | ​ |  | 171 | ​ |  | 180 | ​ |  | 188 | ​ |  | 197 | ​ |  | 206
Bank-Owned Life Insurance | ​ | ​ | 35,090 | ​ | ​ | 34,778 | ​ | ​ | 34,477 | ​ | ​ | 34,209 | ​ | ​ | 33,958
Other Assets | ​ |  | 91,086 | ​ |  | 100,196 | ​ |  | 92,138 | ​ |  | 95,346 | ​ |  | 86,968
Total Assets | ​ | $ | 4,687,035 | ​ | $ | 4,723,109 | ​ | $ | 4,611,990 | ​ | $ | 4,557,070 | ​ | $ | 4,603,185
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Liabilities and Equity | ​ |  | ​ | ​ |  | ​ | ​ |  |  | ​ |  | ​ | ​ |  |
Liabilities | ​ |  | ​ | ​ |  | ​ | ​ |  |  | ​ |  | ​ | ​ |  |
Deposits: | ​ |  | ​ | ​ |  | ​ | ​ |  |  | ​ |  | ​ | ​ |  |
Noninterest Bearing | ​ | $ | 705,175 | ​ | $ | 698,432 | ​ | $ | 756,964 | ​ | $ | 754,297 | ​ | $ | 751,217
Interest Bearing | ​ |  | 3,102,537 | ​ |  | 3,108,793 | ​ |  | 2,952,984 | ​ |  | 2,921,212 | ​ |  | 2,826,715
Total Deposits | ​ |  | 3,807,712 | ​ |  | 3,807,225 | ​ |  | 3,709,948 | ​ |  | 3,675,509 | ​ |  | 3,577,932
Federal Funds Purchased | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 195,000
Notes Payable | ​ |  | 13,750 | ​ |  | 13,750 | ​ |  | 13,750 | ​ |  | 13,750 | ​ |  | 13,750
FHLB Advances | ​ |  | 287,000 | ​ |  | 317,000 | ​ |  | 319,500 | ​ |  | 294,500 | ​ |  | 262,000
Subordinated Debentures, Net of Issuance Costs | ​ |  | 79,479 | ​ |  | 79,383 | ​ |  | 79,288 | ​ |  | 79,192 | ​ |  | 79,096
Accrued Interest Payable | ​ |  | 3,999 | ​ |  | 4,405 | ​ |  | 5,282 | ​ |  | 3,816 | ​ |  | 2,974
Other Liabilities | ​ |  | 55,854 | ​ |  | 67,735 | ​ |  | 58,707 | ​ |  | 74,343 | ​ |  | 63,307
Total Liabilities | ​ | ​ | 4,247,794 | ​ | ​ | 4,289,498 | ​ | ​ | 4,186,475 | ​ | ​ | 4,141,110 | ​ | ​ | 4,194,059
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
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 June 30, 2024 (unaudited), March 31, 2024 (unaudited), December 31, 2023, September 30, 2023 (unaudited), and June 30, 2023 (unaudited) | ​ |  | 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 27,348,049 at June 30, 2024 (unaudited), 27,589,827 at March 31, 2024 (unaudited), 27,748,965 at December 31, 2023, 28,015,505 at September 30, 2023 (unaudited), and 27,973,995 at June 30, 2023 (unaudited) | ​ |  | 273 | ​ | ​ | 276 | ​ | ​ | 277 | ​ |  | 280 | ​ |  | 280
Additional Paid-In Capital | ​ |  | 93,205 | ​ |  | 95,069 | ​ |  | 96,320 | ​ |  | 100,120 | ​ |  | 99,044
Retained Earnings | ​ |  | 294,569 | ​ |  | 287,468 | ​ |  | 280,650 | ​ |  | 272,812 | ​ |  | 264,196
Accumulated Other Comprehensive Loss | ​ |  | (15,320) | ​ |  | (15,716) | ​ |  | (18,246) | ​ |  | (23,766) | ​ |  | (20,908)
Total Shareholders' Equity | ​ |  | 439,241 | ​ |  | 433,611 | ​ |  | 425,515 | ​ |  | 415,960 | ​ |  | 409,126
Total Liabilities and Equity | ​ | $ | 4,687,035 | ​ | $ | 4,723,109 | ​ | $ | 4,611,990 | ​ | $ | 4,557,070 | ​ | $ | 4,603,185

Page 11 of 17

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Bridgewater Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income

(dollars in thousands, except per share data)

(Unaudited)

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Six Months Ended
​ | ​ | June 30, | ​ | March 31, | ​ | December 31, | ​ | September 30, | ​ | June 30, | ​ | June 30, | ​ | June 30,
(dollars in thousands) | ​ | 2024 |  | 2024 |  | 2023 |  | 2023 |  | 2023 |  | 2024 |  | 2023
Interest Income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Loans, Including Fees | ​ | $ | 51,385 | ​ | $ | 49,581 | ​ | $ | 49,727 | ​ | $ | 48,999 | ​ | $ | 47,721 | ​ | $ | 100,966 | ​ | $ | 92,676
Investment Securities | ​ |  | 8,177 | ​ |  | 7,916 | ​ |  | 7,283 | ​ |  | 6,507 | ​ |  | 6,237 | ​ |  | 16,093 | ​ |  | 12,455
Other | ​ |  | 1,316 | ​ |  | 1,172 | ​ |  | 1,543 | ​ |  | 1,303 | ​ |  | 1,043 | ​ |  | 2,488 | ​ |  | 1,862
Total Interest Income | ​ |  | 60,878 | ​ |  | 58,669 | ​ |  | 58,553 | ​ |  | 56,809 | ​ |  | 55,001 | ​ |  | 119,547 | ​ |  | 106,993
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest Expense | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Deposits | ​ |  | 31,618 | ​ |  | 30,190 | ​ |  | 29,448 | ​ |  | 27,225 | ​ |  | 22,998 | ​ |  | 61,808 | ​ |  | 39,372
Federal Funds Purchased | ​ |  | 853 | ​ |  | 304 | ​ |  | 268 | ​ |  | 548 | ​ |  | 2,761 | ​ |  | 1,157 | ​ |  | 7,705
Notes Payable | ​ |  | 296 | ​ |  | 295 | ​ |  | 299 | ​ |  | 296 | ​ |  | 285 | ​ |  | 591 | ​ |  | 548
FHLB Advances | ​ |  | 2,125 | ​ |  | 2,258 | ​ |  | 2,220 | ​ |  | 2,316 | ​ |  | 2,092 | ​ |  | 4,383 | ​ |  | 2,953
Subordinated Debentures | ​ |  | 990 | ​ |  | 991 | ​ |  | 1,004 | ​ |  | 1,003 | ​ |  | 993 | ​ |  | 1,981 | ​ |  | 1,976
Total Interest Expense | ​ |  | 35,882 | ​ |  | 34,038 | ​ |  | 33,239 | ​ |  | 31,388 | ​ |  | 29,129 | ​ |  | 69,920 | ​ |  | 52,554
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net Interest Income | ​ |  | 24,996 | ​ |  | 24,631 | ​ |  | 25,314 | ​ |  | 25,421 | ​ |  | 25,872 | ​ |  | 49,627 | ​ |  | 54,439
Provision for (Recovery of) Credit Losses | ​ |  | 600 | ​ |  | 750 | ​ |  | (250) | ​ |  | (600) | ​ |  | 50 | ​ |  | 1,350 | ​ |  | 675
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net Interest Income After Provision for Credit Losses | ​ |  | 24,396 | ​ |  | 23,881 | ​ |  | 25,564 | ​ |  | 26,021 | ​ |  | 25,822 | ​ |  | 48,277 | ​ |  | 53,764
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Noninterest Income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Customer Service Fees | ​ | ​ | 366 | ​ | ​ | 342 | ​ | ​ | 359 | ​ | ​ | 379 | ​ | ​ | 368 | ​ | ​ | 708 | ​ | ​ | 717
Net Gain (Loss) on Sales of Securities | ​ | ​ | 320 | ​ | ​ | 93 | ​ | ​ | (27) | ​ | ​ | — | ​ | ​ | 50 | ​ | ​ | 413 | ​ | ​ | (6)
Letter of Credit Fees | ​ | ​ | 387 | ​ | ​ | 316 | ​ | ​ | 418 | ​ | ​ | 315 | ​ | ​ | 379 | ​ | ​ | 703 | ​ | ​ | 1,013
Debit Card Interchange Fees | ​ | ​ | 155 | ​ | ​ | 141 | ​ | ​ | 152 | ​ | ​ | 150 | ​ | ​ | 155 | ​ | ​ | 296 | ​ | ​ | 293
Bank-Owned Life Insurance | ​ | ​ | 312 | ​ | ​ | 301 | ​ | ​ | 268 | ​ | ​ | 252 | ​ | ​ | 238 | ​ | ​ | 613 | ​ | ​ | 472
FHLB Prepayment Income | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 493 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 299
Other Income | ​ | ​ | 223 | ​ | ​ | 357 | ​ | ​ | 239 | ​ | ​ | 137 | ​ | ​ | 225 | ​ | ​ | 580 | ​ | ​ | 570
Total Noninterest Income | ​ | ​ | 1,763 | ​ | ​ | 1,550 | ​ | ​ | 1,409 | ​ | ​ | 1,726 | ​ | ​ | 1,415 | ​ | ​ | 3,313 | ​ | ​ | 3,358
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Noninterest Expense | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Salaries and Employee Benefits | ​ | ​ | 9,675 | ​ | ​ | 9,433 | ​ | ​ | 9,615 | ​ | ​ | 9,519 | ​ | ​ | 8,589 | ​ | ​ | 19,108 | ​ | ​ | 17,404
Occupancy and Equipment | ​ | ​ | 1,092 | ​ | ​ | 1,057 | ​ | ​ | 1,062 | ​ | ​ | 1,101 | ​ | ​ | 1,075 | ​ | ​ | 2,149 | ​ | ​ | 2,284
FDIC Insurance Assessment | ​ | ​ | 725 | ​ | ​ | 875 | ​ | ​ | 1,050 | ​ | ​ | 1,075 | ​ | ​ | 900 | ​ | ​ | 1,600 | ​ | ​ | 1,565
Data Processing | ​ | ​ | 472 | ​ | ​ | 412 | ​ | ​ | 424 | ​ | ​ | 392 | ​ | ​ | 401 | ​ | ​ | 884 | ​ | ​ | 758
Professional and Consulting Fees | ​ | ​ | 852 | ​ | ​ | 889 | ​ | ​ | 782 | ​ | ​ | 715 | ​ | ​ | 829 | ​ | ​ | 1,741 | ​ | ​ | 1,584
Derivative Collateral Fees | ​ | ​ | 528 | ​ | ​ | 486 | ​ | ​ | 573 | ​ | ​ | 543 | ​ | ​ | 404 | ​ | ​ | 1,014 | ​ | ​ | 784
Information Technology and Telecommunications | ​ | ​ | 812 | ​ | ​ | 796 | ​ | ​ | 812 | ​ | ​ | 683 | ​ | ​ | 711 | ​ | ​ | 1,608 | ​ | ​ | 1,394
Marketing and Advertising | ​ | ​ | 317 | ​ | ​ | 322 | ​ | ​ | 324 | ​ | ​ | 222 | ​ | ​ | 321 | ​ | ​ | 639 | ​ | ​ | 583
Intangible Asset Amortization | ​ | ​ | 8 | ​ | ​ | 9 | ​ | ​ | 9 | ​ | ​ | 9 | ​ | ​ | 34 | ​ | ​ | 17 | ​ | ​ | 82
Other Expense | ​ | ​ | 1,058 | ​ | ​ | 910 | ​ | ​ | 1,089 | ​ | ​ | 978 | ​ | ​ | 1,010 | ​ | ​ | 1,968 | ​ | ​ | 1,905
Total Noninterest Expense | ​ | ​ | 15,539 | ​ | ​ | 15,189 | ​ | ​ | 15,740 | ​ | ​ | 15,237 | ​ | ​ | 14,274 | ​ | ​ | 30,728 | ​ | ​ | 28,343
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Income Before Income Taxes | ​ | ​ | 10,620 | ​ | ​ | 10,242 | ​ | ​ | 11,233 | ​ | ​ | 12,510 | ​ | ​ | 12,963 | ​ | ​ | 20,862 | ​ | ​ | 28,779
Provision for Income Taxes | ​ | ​ | 2,505 | ​ | ​ | 2,411 | ​ | ​ | 2,360 | ​ | ​ | 2,881 | ​ | ​ | 3,147 | ​ | ​ | 4,916 | ​ | ​ | 7,321
Net Income | ​ | ​ | 8,115 | ​ | ​ | 7,831 | ​ | ​ | 8,873 | ​ | ​ | 9,629 | ​ | ​ | 9,816 | ​ | ​ | 15,946 | ​ | ​ | 21,458
Preferred Stock Dividends | ​ | ​ | (1,014) | ​ | ​ | (1,013) | ​ | ​ | (1,014) | ​ | ​ | (1,013) | ​ | ​ | (1,014) | ​ | ​ | (2,027) | ​ | ​ | (2,027)
Net Income Available to Common Shareholders | ​ | $ | 7,101 | ​ | $ | 6,818 | ​ | $ | 7,859 | ​ | $ | 8,616 | ​ | $ | 8,802 | ​ | $ | 13,919 | ​ | $ | 19,431
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Earnings Per Share | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Basic | ​ | $ | 0.26 | ​ | $ | 0.25 | ​ | $ | 0.28 | ​ | $ | 0.31 | ​ | $ | 0.32 | ​ | $ | 0.51 | ​ | $ | 0.70
Diluted | ​ | ​ | 0.26 | ​ | ​ | 0.24 | ​ | ​ | 0.28 | ​ | ​ | 0.30 | ​ | ​ | 0.31 | ​ | ​ | 0.50 | ​ | ​ | 0.69

Page 12 of 17

​

​

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 |
​ | ​ | June 30, 2024 | ​ | March 31, 2024 |  | June 30, 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 | ​ | $ | 81,672 | ​ | $ | 922 | ​ | 4.54 | % | $ | 75,089 | ​ | $ | 829 | ​ | 4.44 | % | $ | 59,963 | ​ | $ | 587 | ​ | 3.93 | %
Investment Securities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Taxable Investment Securities | ​ |  | 641,469 | ​ | ​ | 7,861 | ​ | 4.93 | ​ |  | 638,509 | ​ | ​ | 7,600 | ​ | 4.79 | ​ |  | 568,143 | ​ |  | 6,000 | ​ | 4.24 | ​
Tax-Exempt Investment Securities (1) | ​ |  | 31,550 | ​ | ​ | 401 | ​ | 5.11 | ​ |  | 31,745 | ​ | ​ | 400 | ​ | 5.07 | ​ |  | 27,081 | ​ |  | 300 | ​ | 4.44 | ​
Total Investment Securities | ​ |  | 673,019 | ​ |  | 8,262 | ​ | 4.94 | ​ |  | 670,254 | ​ |  | 8,000 | ​ | 4.80 | ​ |  | 595,224 | ​ |  | 6,300 | ​ | 4.24 | ​
Loans (1)(2) | ​ |  | 3,771,768 | ​ | ​ | 51,592 | ​ | 5.50 | ​ |  | 3,729,355 | ​ | ​ | 49,858 | ​ | 5.38 | ​ |  | 3,716,534 | ​ | ​ | 48,066 | ​ | 5.19 | ​
Federal Home Loan Bank Stock | ​ |  | 19,461 | ​ | ​ | 394 | ​ | 8.15 | ​ |  | 18,058 | ​ | ​ | 343 | ​ | 7.64 | ​ |  | 23,330 | ​ | ​ | 456 | ​ | 7.84 | ​
Total Interest Earning Assets | ​ |  | 4,545,920 | ​ |  | 61,170 | ​ | 5.41 | % |  | 4,492,756 | ​ |  | 59,030 | ​ | 5.28 | % |  | 4,395,051 | ​ |  | 55,409 | ​ | 5.06 | %
Noninterest Earning Assets | ​ | ​ | 100,597 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 100,082 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 88,611 | ​ | ​ | ​ | ​ | ​ | ​
Total Assets | ​ | $ | 4,646,517 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 4,592,838 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 4,483,662 | ​ | ​ | ​ | ​ | ​ | ​
Interest Bearing Liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deposits: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest Bearing Transaction Deposits | ​ | $ | 732,923 | ​ | $ | 8,270 | ​ | 4.54 | % | $ | 732,186 | ​ | $ | 7,693 | ​ | 4.23 | % | $ | 683,034 | ​ | $ | 5,918 | ​ | 3.48 | %
Savings and Money Market Deposits | ​ |  | 914,397 | ​ | ​ | 9,459 | ​ | 4.16 | ​ |  | 896,844 | ​ | ​ | 8,781 | ​ | 3.94 | ​ |  | 861,947 | ​ | ​ | 7,048 | ​ | 3.28 | ​
Time Deposits | ​ |  | 360,691 | ​ | ​ | 3,850 | ​ | 4.30 | ​ |  | 317,595 | ​ | ​ | 3,167 | ​ | 4.01 | ​ |  | 269,439 | ​ | ​ | 1,702 | ​ | 2.53 | ​
Brokered Deposits | ​ |  | 976,467 | ​ | ​ | 10,039 | ​ | 4.13 | ​ |  | 1,014,197 | ​ | ​ | 10,549 | ​ | 4.18 | ​ |  | 896,989 | ​ | ​ | 8,330 | ​ | 3.72 | ​
Total Interest Bearing Deposits | ​ | ​ | 2,984,478 | ​ | ​ | 31,618 | ​ | 4.26 | ​ | ​ | 2,960,822 | ​ | ​ | 30,190 | ​ | 4.10 | ​ | ​ | 2,711,409 | ​ | ​ | 22,998 | ​ | 3.40 | ​
Federal Funds Purchased | ​ | ​ | 61,151 | ​ | ​ | 853 | ​ | 5.61 | ​ |  | 21,824 | ​ | ​ | 304 | ​ | 5.60 | ​ |  | 210,677 | ​ | ​ | 2,761 | ​ | 5.26 | ​
Notes Payable | ​ | ​ | 13,750 | ​ | ​ | 296 | ​ | 8.64 | ​ |  | 13,750 | ​ | ​ | 295 | ​ | 8.64 | ​ |  | 13,750 | ​ | ​ | 285 | ​ | 8.33 | ​
FHLB Advances | ​ | ​ | 306,396 | ​ | ​ | 2,125 | ​ | 2.79 | ​ |  | 318,648 | ​ | ​ | 2,258 | ​ | 2.85 | ​ |  | 242,714 | ​ | ​ | 2,092 | ​ | 3.46 | ​
Subordinated Debentures | ​ | ​ | 79,424 | ​ | ​ | 990 | ​ | 5.02 | ​ |  | 79,328 | ​ | ​ | 991 | ​ | 5.02 | ​ |  | 79,041 | ​ | ​ | 993 | ​ | 5.04 | ​
Total Interest Bearing Liabilities | ​ |  | 3,445,199 | ​ |  | 35,882 | ​ | 4.19 | % |  | 3,394,372 | ​ |  | 34,038 | ​ | 4.03 | % |  | 3,257,591 | ​ |  | 29,129 | ​ | 3.59 | %
Noninterest Bearing Liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Noninterest Bearing Transaction Deposits | ​ |  | 691,891 | ​ | ​ | ​ | ​ | ​ | ​ |  | 701,175 | ​ | ​ | ​ | ​ | ​ | ​ |  | 755,040 | ​ | ​ | ​ | ​ | ​ | ​
Other Noninterest Bearing Liabilities | ​ | ​ | 73,842 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 69,043 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 64,684 | ​ | ​ | ​ | ​ | ​ | ​
Total Noninterest Bearing Liabilities | ​ |  | 765,733 | ​ | ​ | ​ | ​ | ​ | ​ |  | 770,218 | ​ | ​ | ​ | ​ | ​ | ​ |  | 819,724 | ​ | ​ | ​ | ​ | ​ | ​
Shareholders' Equity | ​ | ​ | 435,585 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 428,248 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 406,347 | ​ | ​ | ​ | ​ | ​ | ​
Total Liabilities and Shareholders' Equity | ​ | $ | 4,646,517 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 4,592,838 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 4,483,662 | ​ | ​ | ​ | ​ | ​ | ​
Net Interest Income / Interest Rate Spread | ​ | ​ | ​ | ​ |  | 25,288 | ​ | 1.22 | % | ​ | ​ | ​ |  | 24,992 | ​ | 1.25 | % | ​ | ​ | ​ |  | 26,280 | ​ | 1.47 | %
Net Interest Margin (3) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2.24 | % | ​ | ​ | ​ | ​ | ​ | ​ | 2.24 | % | ​ | ​ | ​ | ​ | ​ | ​ | 2.40 | %
Taxable Equivalent Adjustment: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tax-Exempt Investment Securities and Loans | ​ | ​ | ​ | ​ |  | (292) | ​ | ​ | ​ | ​ | ​ | ​ |  | (361) | ​ | ​ | ​ | ​ | ​ | ​ |  | (408) | ​ | ​ | ​
Net Interest Income | ​ | ​ | ​ | ​ | $ | 24,996 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 24,631 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 25,872 | ​ | ​ | ​

(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.

​

Page 13 of 17

​

​

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

(dollars in thousands, except per share data)

(Unaudited)

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the Six Months Ended |
​ | ​ | June 30, 2024 | ​ | June 30, 2023 |
​ | ​ | Average | ​ | Interest | ​ | Yield/ | ​ | Average | ​ | Interest | ​ | Yield/ | ​
(dollars in thousands) |  | Balance |  | & Fees |  | Rate |  | Balance |  | & Fees |  | Rate |
Interest Earning Assets: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cash Investments | ​ | $ | 78,380 | ​ | $ | 1,751 | ​ | 4.49 | % | $ | 61,599 | ​ | $ | 1,034 | ​ | 3.38 | %
Investment Securities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Taxable Investment Securities | ​ |  | 639,989 | ​ |  | 15,461 | ​ | 4.86 | ​ |  | 571,176 | ​ |  | 11,958 | ​ | 4.22 | ​
Tax-Exempt Investment Securities (1) | ​ |  | 31,648 | ​ |  | 801 | ​ | 5.09 | ​ |  | 28,435 | ​ |  | 629 | ​ | 4.46 | ​
Total Investment Securities | ​ |  | 671,637 | ​ |  | 16,262 | ​ | 4.87 | ​ |  | 599,611 | ​ |  | 12,587 | ​ | 4.23 | ​
Loans (1)(2) | ​ | ​ | 3,750,561 | ​ | ​ | 101,450 | ​ | 5.44 | ​ | ​ | 3,673,728 | ​ | ​ | 93,332 | ​ | 5.12 | ​
Federal Home Loan Bank Stock | ​ |  | 18,760 | ​ | ​ | 737 | ​ | 7.90 | ​ |  | 24,639 | ​ | ​ | 828 | ​ | 6.77 | ​
Total Interest Earning Assets | ​ |  | 4,519,338 | ​ |  | 120,200 | ​ | 5.35 | % |  | 4,359,577 | ​ |  | 107,781 | ​ | 4.99 | %
Noninterest Earning Assets | ​ | ​ | 100,340 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 85,087 | ​ | ​ | ​ | ​ | ​ | ​
Total Assets | ​ | $ | 4,619,678 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 4,444,664 | ​ | ​ | ​ | ​ | ​ | ​
Interest Bearing Liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deposits: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest Bearing Transaction Deposits | ​ | $ | 733,714 | ​ | $ | 15,963 | ​ | 4.38 | % | $ | 570,964 | ​ | $ | 8,698 | ​ | 3.07 | %
Savings and Money Market Deposits | ​ |  | 905,620 | ​ | ​ | 18,240 | ​ | 4.05 | ​ |  | 952,865 | ​ | ​ | 13,547 | ​ | 2.87 | ​
Time Deposits | ​ |  | 339,143 | ​ | ​ | 7,017 | ​ | 4.16 | ​ |  | 258,865 | ​ | ​ | 2,771 | ​ | 2.16 | ​
Brokered Deposits | ​ |  | 995,332 | ​ | ​ | 20,588 | ​ | 4.16 | ​ |  | 820,651 | ​ | ​ | 14,356 | ​ | 3.53 | ​
Total Interest Bearing Deposits | ​ | ​ | 2,973,809 | ​ | ​ | 61,808 | ​ | 4.18 | ​ | ​ | 2,603,345 | ​ | ​ | 39,372 | ​ | 3.05 | ​
Federal Funds Purchased | ​ |  | 41,487 | ​ | ​ | 1,157 | ​ | 5.61 | ​ |  | 312,329 | ​ | ​ | 7,705 | ​ | 4.97 | ​
Notes Payable | ​ |  | 13,750 | ​ | ​ | 591 | ​ | 8.64 | ​ |  | 13,750 | ​ | ​ | 548 | ​ | 8.03 | ​
FHLB Advances | ​ |  | 312,522 | ​ | ​ | 4,383 | ​ | 2.82 | ​ |  | 185,785 | ​ | ​ | 2,953 | ​ | 3.21 | ​
Subordinated Debentures | ​ |  | 79,376 | ​ | ​ | 1,981 | ​ | 5.02 | ​ |  | 78,994 | ​ | ​ | 1,976 | ​ | 5.05 | ​
Total Interest Bearing Liabilities | ​ |  | 3,420,944 | ​ |  | 69,920 | ​ | 4.11 | % |  | 3,194,203 | ​ |  | 52,554 | ​ | 3.32 | %
Noninterest Bearing Liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Noninterest Bearing Transaction Deposits | ​ |  | 695,373 | ​ | ​ | ​ | ​ | ​ | ​ |  | 786,009 | ​ | ​ | ​ | ​ | ​ | ​
Other Noninterest Bearing Liabilities | ​ | ​ | 71,445 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 59,504 | ​ | ​ | ​ | ​ | ​ | ​
Total Noninterest Bearing Liabilities | ​ |  | 766,818 | ​ | ​ | ​ | ​ | ​ | ​ |  | 845,513 | ​ | ​ | ​ | ​ | ​ | ​
Shareholders' Equity | ​ | ​ | 431,916 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 404,948 | ​ | ​ | ​ | ​ | ​ | ​
Total Liabilities and Shareholders' Equity | ​ | $ | 4,619,678 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 4,444,664 | ​ | ​ | ​ | ​ | ​ | ​
Net Interest Income / Interest Rate Spread | ​ | ​ | ​ | ​ |  | 50,280 | ​ | 1.24 | % | ​ | ​ | ​ |  | 55,227 | ​ | 1.67 | %
Net Interest Margin (3) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2.24 | % | ​ | ​ | ​ | ​ | ​ | ​ | 2.55 | %
Taxable Equivalent Adjustment: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tax-Exempt Investment Securities and Loans | ​ | ​ | ​ | ​ |  | (653) | ​ | ​ | ​ | ​ | ​ | ​ |  | (788) | ​ | ​ | ​
Net Interest Income | ​ | ​ | ​ | ​ | $ | 49,627 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 54,439 | ​ | ​ | ​

​

Page 14 of 17

​

​

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 Six Months Ended | ​
​ | ​ | June 30, | ​ | March 31, | ​ | December 31, | ​ | September 30, |  | June 30, |  | June 30, | ​ | June 30, | ​
(dollars in thousands) |  | 2024 |  | 2024 |  | 2023 |  | 2023 |  | 2023 |  | 2024 |  | 2023 | ​
Allowance for Credit Losses | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Balance at Beginning of Period | ​ | $ | 51,347 | ​ | $ | 50,494 | ​ | $ | 50,585 | ​ | $ | 50,701 | ​ | $ | 50,148 | ​ | $ | 50,494 | ​ | $ | 47,996 | ​
Impact of Adopting CECL | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 650 | ​
Provision for Credit Losses | ​ | ​ | 600 | ​ | ​ | 850 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 550 | ​ | ​ | 1,450 | ​ | ​ | 2,050 | ​
Charge-offs | ​ | ​ | (10) | ​ | ​ | (2) | ​ | ​ | (95) | ​ | ​ | (122) | ​ | ​ | (3) | ​ | ​ | (12) | ​ | ​ | (7) | ​
Recoveries | ​ | ​ | 12 | ​ | ​ | 5 | ​ | ​ | 4 | ​ | ​ | 6 | ​ | ​ | 6 | ​ | ​ | 17 | ​ | ​ | 12 | ​
Net Charge-offs | ​ | $ | 2 | ​ | $ | 3 | ​ | $ | (91) | ​ | $ | (116) | ​ | $ | 3 | ​ | $ | 5 | ​ | $ | 5 | ​
Balance at End of Period | ​ | ​ | 51,949 | ​ | ​ | 51,347 | ​ | ​ | 50,494 | ​ | ​ | 50,585 | ​ | ​ | 50,701 | ​ | ​ | 51,949 | ​ | ​ | 50,701 | ​
Allowance for Credit Losses to Total Loans | ​ | ​ | 1.37 | % | ​ | 1.36 | % | ​ | 1.36 | % | ​ | 1.36 | % | ​ | 1.36 | % | ​ | 1.37 | % | ​ | 1.36 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of and for the Three Months Ended | ​ | As of and for the Six Months Ended | ​
​ | ​ | June 30, | ​ | March 31, | ​ | December 31, | ​ | September 30, |  | June 30, |  | June 30, | ​ | June 30, | ​
(dollars in thousands) |  | 2024 |  | 2024 |  | 2023 |  | 2023 |  | 2023 |  | 2024 |  | 2023 | ​
Provision for Credit Losses on Loans | ​ | $ | 600 | ​ | $ | 850 | ​ | $ | — | ​ | $ | — | ​ | $ | 550 | ​ | $ | 1,450 | ​ | $ | 2,050 | ​
Recovery of Credit Losses for Off-Balance Sheet Credit Exposures | ​ | ​ | — | ​ | ​ | (100) | ​ | ​ | (250) | ​ | ​ | (600) | ​ | ​ | (500) | ​ | ​ | (100) | ​ | ​ | (1,375) | ​
Provision for (Recovery of) Credit Losses | ​ | $ | 600 | ​ | $ | 750 | ​ | $ | (250) | ​ | $ | (600) | ​ | $ | 50 | ​ | $ | 1,350 | ​ | $ | 675 | ​

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of and for the Three Months Ended | ​
​ | ​ | June 30, | ​ | March 31, | ​ | December 31, | ​ | September 30, |  | June 30, | ​
(dollars in thousands) | ​ | 2024 |  | 2024 |  | 2023 |  | 2023 |  | 2023 | ​
Selected Asset Quality Data |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Loans 30-89 Days Past Due | ​ | $ | 502 |  | $ | — |  | $ | 15,110 |  | $ | 11 |  | $ | — |
Loans 30-89 Days Past Due to Total Loans | ​ | ​ | 0.01 | % | ​ | 0.00 | % | ​ | 0.41 | % | ​ | 0.00 | % | ​ | 0.00 | %
Nonperforming Loans | ​ | $ | 678 |  | $ | 249 |  | $ | 919 |  | $ | 749 |  | $ | 662 |
Nonperforming Loans to Total Loans | ​ | ​ | 0.02 | % | ​ | 0.01 | % | ​ | 0.02 | % | ​ | 0.02 | % | ​ | 0.02 | %
Nonaccrual Loans to Total Loans | ​ | ​ | 0.02 | ​ | ​ | 0.01 | ​ | ​ | 0.02 | ​ | ​ | 0.02 | ​ | ​ | 0.02 | ​
Nonaccrual Loans and Loans Past Due 90 Days and Still Accruing to Total Loans | ​ | ​ | 0.02 | ​ | ​ | 0.01 | ​ | ​ | 0.02 | ​ | ​ | 0.02 | ​ | ​ | 0.02 | ​
Foreclosed Assets | ​ | $ | — |  | $ | 20 |  | $ | — |  | $ | — |  | $ | 116 |
Nonperforming Assets (1) | ​ | ​ | 678 |  | ​ | 269 |  | ​ | 919 |  | ​ | 749 |  | ​ | 778 |
Nonperforming Assets to Total Assets (1) | ​ | ​ | 0.01 | % | ​ | 0.01 | % | ​ | 0.02 | % | ​ | 0.02 | % | ​ | 0.02 | %
Net Loan Charge-Offs (Annualized) to Average Loans | ​ | ​ | 0.00 |  | ​ | 0.00 |  | ​ | 0.01 |  | ​ | 0.01 |  | ​ | 0.00 |
Watchlist Risk Rating Loans | ​ | $ | 30,436 | ​ | $ | 21,624 | ​ | $ | 26,485 | ​ | $ | 26,877 | ​ | $ | 27,215 | ​
Substandard Risk Rating Loans | ​ | ​ | 33,908 | ​ | ​ | 33,829 | ​ | ​ | 35,858 | ​ | ​ | 35,621 | ​ | ​ | 33,821 | ​

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

Page 15 of 17

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Bridgewater Bancshares, Inc. and Subsidiaries
Non-GAAP Financial Measures

(dollars in thousands)

(unaudited)

​

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the Three Months Ended | ​ | For the Six Months Ended | ​
​ | ​ | June 30, | ​ | March 31, | ​ | December 31, | ​ | September 30, | ​ | June 30, | ​ | June 30, | ​ | June 30, | ​
(dollars in thousands) | ​ | 2024 |  | 2024 |  | 2023 |  | 2023 | ​ | 2023 | ​ | 2024 |  | 2023 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Pre-Provision Net Revenue | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Noninterest Income | ​ | $ | 1,763 | ​ | $ | 1,550 | ​ | $ | 1,409 | ​ | $ | 1,726 | ​ | $ | 1,415 | ​ | $ | 3,313 | ​ | $ | 3,358 | ​
Less: (Gain) Loss on Sales of Securities | ​ | ​ | (320) | ​ | ​ | (93) | ​ | ​ | 27 | ​ | ​ | — | ​ | ​ | (50) | ​ | ​ | (413) | ​ | ​ | 6 | ​
Less: FHLB Advance Prepayment Income | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (493) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (299) | ​
Total Operating Noninterest Income | ​ | ​ | 1,443 | ​ | ​ | 1,457 | ​ | ​ | 1,436 | ​ | ​ | 1,233 | ​ | ​ | 1,365 | ​ | ​ | 2,900 | ​ | ​ | 3,065 | ​
Plus: Net Interest Income | ​ | ​ | 24,996 | ​ | ​ | 24,631 | ​ | ​ | 25,314 | ​ | ​ | 25,421 | ​ | ​ | 25,872 | ​ | ​ | 49,627 | ​ | ​ | 54,439 | ​
Net Operating Revenue | ​ | $ | 26,439 | ​ | $ | 26,088 | ​ | $ | 26,750 | ​ | $ | 26,654 | ​ | $ | 27,237 | ​ | $ | 52,527 | ​ | $ | 57,504 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Noninterest Expense | ​ | $ | 15,539 | ​ | $ | 15,189 | ​ | $ | 15,740 | ​ | $ | 15,237 | ​ | $ | 14,274 | ​ | $ | 30,728 | ​ | $ | 28,343 | ​
Total Operating Noninterest Expense | ​ | $ | 15,539 | ​ | $ | 15,189 | ​ | $ | 15,740 | ​ | $ | 15,237 | ​ | $ | 14,274 | ​ | $ | 30,728 | ​ | $ | 28,343 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Pre-Provision Net Revenue | ​ | $ | 10,900 | ​ | $ | 10,899 | ​ | $ | 11,010 | ​ | $ | 11,417 | ​ | $ | 12,963 | ​ | $ | 21,799 | ​ | $ | 29,161 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Plus: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Non-Operating Revenue Adjustments | ​ | ​ | 320 | ​ | ​ | 93 | ​ | ​ | (27) | ​ | ​ | 493 | ​ | ​ | 50 | ​ | ​ | 413 | ​ | ​ | 293 | ​
Less: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Provision (Recovery of) for Credit Losses | ​ | ​ | 600 | ​ | ​ | 750 | ​ | ​ | (250) | ​ | ​ | (600) | ​ | ​ | 50 | ​ | ​ | 1,350 | ​ | ​ | 675 | ​
Provision for Income Taxes | ​ | ​ | 2,505 | ​ | ​ | 2,411 | ​ | ​ | 2,360 | ​ | ​ | 2,881 | ​ | ​ | 3,147 | ​ | ​ | 4,916 | ​ | ​ | 7,321 | ​
Net Income | ​ | $ | 8,115 | ​ | $ | 7,831 | ​ | $ | 8,873 | ​ | $ | 9,629 | ​ | $ | 9,816 | ​ | $ | 15,946 | ​ | $ | 21,458 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Average Assets | ​ | $ | 4,646,517 | ​ | $ | 4,592,838 | ​ | $ | 4,567,446 | ​ | $ | 4,504,937 | ​ | $ | 4,483,662 | ​ | $ | 4,619,678 | ​ | $ | 4,444,644 | ​
Pre-Provision Net Revenue Return on Average Assets | ​ | ​ | 0.94 | % | ​ | 0.95 | % | ​ | 0.96 | % | ​ | 1.01 | % | ​ | 1.16 | % | ​ | 0.95 | % | ​ | 1.32 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Core Net Interest Margin | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net Interest Income (Tax-equivalent Basis) |  | $ | 25,288 | ​ | $ | 24,992 | ​ | $ | 25,683 | ​ | $ | 25,822 | ​ | $ | 26,280 | ​ | $ | 50,280 | ​ | $ | 55,227 | ​
Less: Loan Fees | ​ | ​ | (767) | ​ | ​ | (608) | ​ | ​ | (751) | ​ | ​ | (914) | ​ | ​ | (941) | ​ | ​ | (1,374) | ​ | ​ | (1,939) | ​
Core Net Interest Income | ​ | $ | 24,521 | ​ | $ | 24,384 | ​ | $ | 24,932 | ​ | $ | 24,908 | ​ | $ | 25,339 | ​ | $ | 48,906 | ​ | $ | 53,288 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Average Interest Earning Assets | ​ | $ | 4,545,920 | ​ | $ | 4,492,756 | ​ | $ | 4,480,428 | ​ | $ | 4,416,424 | ​ | $ | 4,395,050 | ​ | $ | 4,519,338 | ​ | $ | 4,359,577 | ​
Core Net Interest Margin | ​ | ​ | 2.17 | % | ​ | 2.18 | % | ​ | 2.21 | % | ​ | 2.24 | % |  | 2.31 | % |  | 2.18 | % |  | 2.46 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Efficiency Ratio | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Noninterest Expense |  | $ | 15,539 | ​ | $ | 15,189 | ​ | $ | 15,740 | ​ | $ | 15,237 | ​ | $ | 14,274 | ​ | $ | 30,728 | ​ | $ | 28,343 | ​
Less: Amortization of Intangible Assets | ​ | ​ | (8) | ​ | ​ | (9) | ​ | ​ | (9) | ​ | ​ | (9) | ​ | ​ | (34) | ​ | ​ | (17) | ​ | ​ | (82) | ​
Adjusted Noninterest Expense | ​ | $ | 15,531 | ​ | $ | 15,180 | ​ | $ | 15,731 | ​ | $ | 15,228 | ​ | $ | 14,240 | ​ | $ | 30,711 | ​ | $ | 28,261 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net Interest Income | ​ | $ | 24,996 | ​ | $ | 24,631 | ​ | $ | 25,314 | ​ | $ | 25,421 | ​ | $ | 25,872 | ​ | $ | 49,627 | ​ | $ | 54,439 | ​
Noninterest Income | ​ | ​ | 1,763 | ​ | ​ | 1,550 | ​ | ​ | 1,409 | ​ | ​ | 1,726 | ​ | ​ | 1,415 | ​ | ​ | 3,313 | ​ | ​ | 3,358 | ​
Less: Gain (Loss) on Sales of Securities | ​ | ​ | (320) | ​ | ​ | (93) | ​ | ​ | 27 | ​ | ​ | — | ​ | ​ | (50) | ​ | ​ | (413) | ​ | ​ | 6 | ​
Adjusted Operating Revenue | ​ | $ | 26,439 | ​ | $ | 26,088 | ​ | $ | 26,750 | ​ | $ | 27,147 | ​ | $ | 27,237 | ​ | $ | 52,527 | ​ | $ | 57,803 | ​
Efficiency Ratio | ​ |  | 58.7 | % |  | 58.2 | % |  | 58.8 | % |  | 56.1 | % |  | 52.3 | % |  | 58.5 | % |  | 48.9 | %

​

Page 16 of 17

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Bridgewater Bancshares, Inc. and Subsidiaries

Non-GAAP Financial Measures

(dollars in thousands)

(unaudited)

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the Three Months Ended | ​ | ​ | For the Six Months Ended
​ | ​ | June 30, | ​ | March 31, | ​ | December 31, | ​ | September 30, | ​ | June 30, | ​ | ​ | June 30, | ​ | June 30,
(dollars in thousands) | ​ | 2024 |  | 2024 |  | 2023 |  | 2023 | ​ | 2023 | ​ | ​ | 2024 |  | 2023
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tangible Common Equity and Tangible Common Equity/Tangible Assets | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total Shareholders' Equity | ​ | $ | 439,241 | ​ | $ | 433,611 | ​ | $ | 425,515 | ​ | $ | 415,960 | ​ | $ | 409,126 | ​ | ​ | ​ | ​ | ​ | ​ | ​
Less: Preferred Stock | ​ | ​ | (66,514) | ​ | ​ | (66,514) | ​ | ​ | (66,514) | ​ | ​ | (66,514) | ​ | ​ | (66,514) | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total Common Shareholders' Equity | ​ | ​ | 372,727 | ​ | ​ | 367,097 | ​ | ​ | 359,001 | ​ | ​ | 349,446 | ​ | ​ | 342,612 | ​ | ​ | ​ | ​ | ​ | ​ | ​
Less: Intangible Assets | ​ | ​ | (2,797) | ​ | ​ | (2,806) | ​ | ​ | (2,814) | ​ | ​ | (2,823) | ​ | ​ | (2,832) | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tangible Common Equity | ​ | $ | 369,930 | ​ | $ | 364,291 | ​ | $ | 356,187 | ​ | $ | 346,623 | ​ | $ | 339,780 | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total Assets | ​ | $ | 4,687,035 | ​ | $ | 4,723,109 | ​ | $ | 4,611,990 | ​ | $ | 4,557,070 | ​ | $ | 4,603,185 | ​ | ​ | ​ | ​ | ​ | ​ | ​
Less: Intangible Assets | ​ | ​ | (2,797) | ​ | ​ | (2,806) | ​ | ​ | (2,814) | ​ | ​ | (2,823) | ​ | ​ | (2,832) | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tangible Assets | ​ | $ | 4,684,238 | ​ | $ | 4,720,303 | ​ | $ | 4,609,176 | ​ | $ | 4,554,247 | ​ | $ | 4,600,353 | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tangible Common Equity/Tangible Assets | ​ |  | 7.90 | % |  | 7.72 | % |  | 7.73 | % |  | 7.61 | % |  | 7.39 | % | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tangible Book Value Per Share | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Book Value Per Common Share | ​ | $ | 13.63 | ​ | $ | 13.30 | ​ | $ | 12.94 | ​ | $ | 12.47 | ​ | $ | 12.25 | ​ | ​ | ​ | ​ | ​ | ​ | ​
Less: Effects of Intangible Assets | ​ | ​ | (0.10) | ​ | ​ | (0.10) | ​ | ​ | (0.10) | ​ | ​ | (0.10) | ​ | ​ | (0.10) | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tangible Book Value Per Common Share | ​ | $ | 13.53 | ​ | $ | 13.20 | ​ | $ | 12.84 | ​ | $ | 12.37 | ​ | $ | 12.15 | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Return on Average Tangible Common Equity | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net Income Available to Common Shareholders | ​ | $ | 7,101 | ​ | $ | 6,818 | ​ | $ | 7,859 | ​ | $ | 8,616 | ​ | $ | 8,802 | ​ | $ | 13,919 | ​ | $ | 19,431 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Average Shareholders' Equity | ​ | $ | 435,585 | ​ | $ | 428,248 | ​ | $ | 417,789 | ​ | $ | 414,047 | ​ | $ | 406,347 | ​ | $ | 431,916 | ​ | $ | 404,948 | ​
Less: Average Preferred Stock | ​ | ​ | (66,514) | ​ | ​ | (66,514) | ​ | ​ | (66,514) | ​ | ​ | (66,514) | ​ | ​ | (66,514) | ​ | ​ | (66,514) | ​ | ​ | (66,514) | ​
Average Common Equity | ​ | ​ | 369,071 | ​ | ​ | 361,734 | ​ | ​ | 351,275 | ​ | ​ | 347,533 | ​ | ​ | 339,833 | ​ | ​ | 365,402 | ​ | ​ | 338,434 | ​
Less: Effects of Average Intangible Assets | ​ | ​ | (2,802) | ​ | ​ | (2,811) | ​ | ​ | (2,819) | ​ | ​ | (2,828) | ​ | ​ | (2,846) | ​ | ​ | (2,806) | ​ | ​ | (2,870) | ​
Average Tangible Common Equity | ​ | $ | 366,269 | ​ | $ | 358,923 | ​ | $ | 348,456 | ​ | $ | 344,705 | ​ | $ | 336,987 | ​ | $ | 362,596 | ​ | $ | 335,564 | ​
Return on Average Tangible Common Equity | ​ | ​ | 7.80 | % | ​ | 7.64 | % | ​ | 8.95 | % | ​ | 9.92 | % | ​ | 10.48 | % | ​ | 7.72 | % | ​ | 11.68 | %

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Page 17 of 17

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