8-K - BWB - Equibles

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

July 23, 2024

Date of Report

(Date of earliest event reported)

BRIDGEWATER BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

<br><br><br><br>	<br><br>	<br><br><br><br>
Minnesota<br><br>(State or other jurisdiction of<br><br>incorporation)	001-38412<br><br>(Commission File Number)	26-0113412<br><br>(I.R.S. Employer<br><br>Identification No.)
	4450 Excelsior Boulevard, Suite 100<br><br>St. Louis Park , Minnesota<br><br>(Address of principal executive offices)	55416<br><br>(Zip Code)

Registrant’s telephone number, including area code: (952) 893-6868

Not Applicable (Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:	Trading Symbol	Name of each exchange on which registered:
Common Stock, $0.01 Par Value<br><br>Depositary Shares, each representing a 1/100th interest in a share of 5.875% Non-Cumulative Perpetual Preferred Stock, Series A	BWB<br><br>BWBBP	The NASDAQ Stock Market LLC<br><br>The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 R esults of Operations and Financial Condition.

On July 24, 2024, Bridgewater Bancshares, Inc. (the “Company”) issued a press release announcing its financial results as of and for the three and six months ended June 30, 2024. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information furnished in this item of this Form 8-K, and the related exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.

Item 7.01 R egulation FD Disclosure.

The Company hereby furnishes the Investor Presentation attached hereto as Exhibit 99.2.

The information furnished in this item of this Form 8-K, and the related exhibits, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.

Item 8.01 Other Events .

On July 23, 2024, the Board of Directors of the Company extended the expiration date of the Company’s previously announced stock repurchase program (the “2022 Stock Repurchase Program”) from August 16, 2024 to August 20, 2025. As of July 23, 2024, the Stock Repurchase Program had $15.3 million remaining under its stock repurchase authorization.

Under the 2022 Stock Repurchase Program, the Company may repurchase shares of its common stock from time to time in the open market or privately negotiated transactions. Any open market repurchases will be conducted in accordance with the limitations set forth in Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and other applicable legal requirements. Repurchases may also be made pursuant to a trading plan under Rule 10b5-1 under the Exchange Act, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. The extent to which the Company repurchases its shares, and the timing of such repurchases, will depend upon a variety of factors, including general market and economic conditions, regulatory requirements, availability of funds, and other relevant considerations, as determined by the Company. The Company may, in its discretion, begin, suspend or terminate repurchases at any time prior to the 2022 Stock Repurchase Program’s expiration, without any prior notice.

On July 24, 2024, in its 2024 second quarter earnings release, the Company announced that its Board of Directors had 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 depository share, each representing a 1/100^th^ 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.

Item 9.01 Financial Statements and Exhibits.

(d)****Exhibits

Exhibit 99.1	Press Release of Bridgewater Bancshares, Inc., dated July 24, 2024, regarding second quarter 2024 financial results
Exhibit 99.2	Earnings Presentation dated July 24, 2024
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Exhibit 104	Cover Page Interactive Data File (embedded within the Inline XBRL document)
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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	Bridgewater Bancshares, Inc.


Date: July 24, 2024
	By: /s/ Jerry Baack
	Name: Jerry Baack
	Title: Chairman and Chief Executive Officer

Exhibit 99.1


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

July 24, 2024

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

Second Quarter 2024 Highlights

●	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.
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●	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.
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●	Loan-to-deposit ratio of 99.8%, compared to 99.4% at March 31, 2024.
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●	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.
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●	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.
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●	Efficiency ratio^(1)^ of 58.7%, compared to 58.2% for the first quarter of 2024.
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●	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.
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●	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.
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●	Nonperforming assets to total assets of 0.01% at both June 30, 2024 and March 31, 2024.
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●	Repurchased 252,707 shares of common stock at a weighted average price of $11.48 per share, for a total of $2.9 million.
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(1)	Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.
(2)	Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000.
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Page 1 of 17

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.

“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.

“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.”

Key Financial Measures


		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

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.
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(3)	Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of 21%.
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(4)	Preliminary data. Current period subject to change prior to filings with applicable regulatory agencies.
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(5)	Nonperforming assets are defined as nonaccrual loans plus 90 days past due and still accruing plus foreclosed assets.
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Page 2 of 17

Income Statement

Net Interest Margin and Net Interest Income

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.
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●	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.
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●	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.
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●	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:


	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	%

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.
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●	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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Page 3 of 17

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.
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●	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

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.

Noninterest Income

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

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.
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●	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.
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●	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

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.

Page 4 of 17

Balance Sheet

Loans


(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

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.

Deposits


(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

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.
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●	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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Page 5 of 17

Liquidity

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.


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	%

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 0.00% 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.
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●	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.
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●	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

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.
---	---

Page 6 of 17

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

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

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

(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

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

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

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

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	%

Page 17 of 17

Exhibit 99.2

Disclaimer<br>Forward-Looking Statements<br>This presentation 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<br>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”,<br>“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<br>words of a future or forward-looking nature.<br>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,<br>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<br>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<br>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<br>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<br>the financial services industry, nationally and within our market area, including high rates of inflation and possible recession; the effects of recent developments and events in the financial services industry, including the large-scale<br>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<br>ability to maintain an adequate level of allowance for credit losses; new or revised accounting standards; the concentration of large loans to certain borrowers; the concentration of large deposits from certain clients, who have balances<br>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<br>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<br>and labor shortages and high rates of 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<br>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<br>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<br>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<br>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<br>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,<br>regulations and guidance; potential changes in federal policy and at regular 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<br>with the Securities and Exchange Commission.<br>Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. The Company undertake no obligation to publicly update any<br>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. Certain of the information contained in this presentation is derived<br>from information provided by industry sources. Although the Company believe that such information is accurate and that the sources from which it has been obtained are reliable, the Company cannot guarantee the accuracy of, and<br>have not independently verified, such information.<br>Use of Non-GAAP financial measures<br>In addition to the results presented in accordance with U.S. General Accepted Accounting Principles (“GAAP”), the Company routinely supplements its evaluation with an analysis of certain non-GAAP financial measures. The Company<br>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<br>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<br>that may be presented by other companies. Reconciliations of non-GAAP disclosures to the comparable GAAP measures are provided in this presentation.<br>2
0.01%<br>2Q24 Earnings Highlights<br>3<br>• Deposit balances up $487K from 1Q24, or 0.1% annualized<br>• Loan balances up $16.2 million, or 1.7% annualized, from 1Q24, impacted by increased payoffs<br>• YTD deposit growth of 5.3% annualized and core deposit2 growth of 3.0%, compared to loan growth of 4.1% annualized<br>• Loan-to-deposit ratio of 99.8%, up slightly from 99.4% at 1Q24<br>• Net interest income increased $365K, or 1.5%, from 1Q24, the first QoQ increase since 3Q22<br>• Net interest margin (NIM) of 2.24%, inline with 1Q24<br>• Portfolio loan yield of 5.50% expanded 12 bps in 2Q24, compared to 5 bps of expansion in 1Q24<br>• Balance sheet well-positioned for rate cuts and a normalizing yield curve<br>• Annualized net charge-offs to average loans of 0.00%, inline with 1Q24<br>• Nonperforming assets to total assets of 0.01%, inline with 1Q24<br>• Well-reserved with allowance to total loans of 1.37%<br>NIM Stability Supports<br>Renewed Net Interest<br>Income Growth<br>Superb Asset Quality<br>Continues<br>$0.26<br>Diluted<br>EPS<br>Nonperforming Assets<br>to Total Assets<br>Efficiency<br>Ratio1<br>Return on<br>Average Assets<br>Return on Avg. Tangible<br>Common Equity1<br>0.70% 7.80% 58.7%<br>1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>2 Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000<br>3 Includes publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion as of March 31, 2024 with growth rate through 1Q24 (Source: S&P Capital IQ)<br>• Tangible book value per share1 of $13.53, up 9.8% annualized from 1Q24; 30 consecutive quarters of growth<br>• Tangible book value per share1 growth of 199% since 4Q16 vs. peer bank average of 66%3<br>• Repurchased 252,707 shares of common stock, or $2.9 million (average price of $11.48 per share)<br>Consistent<br>Tangible Book Value<br>Per Share Growth<br>Balance Sheet<br>Growth Slows…<br>Remains on Track YTD
---
Consistent Tangible Book Value Per Share<br>Outperformance<br>4<br>199%<br>66%<br>4Q16<br>1Q17<br>2Q17<br>3Q17<br>4Q17<br>1Q18<br>2Q18<br>3Q18<br>4Q18<br>1Q19<br>2Q19<br>3Q19<br>4Q19<br>1Q20<br>2Q20<br>3Q20<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>4Q22<br>1Q23<br>2Q23<br>3Q23<br>4Q23<br>1Q24<br>2Q24<br>BWB Peer Bank Average2<br>Tangible Book Value Per Share1 Growth for 30 Consecutive Quarters<br>1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>2<br>Includes publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion as of March 31, 2024 with growth rate through 1Q24 (Source: S&P Capital IQ)
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Stable NIM Supports<br>Net Interest Income Growth<br>5<br>$24,931 $24,507 $24,563 $24,023 $24,229<br>$941 $914 $751 $608 $767<br>$25,872 $25,421 $25,314 $24,631 $24,996<br>2.40%<br>2.32%<br>2.27%<br>2.24% 2.24%<br>2Q23 3Q23 4Q23 1Q24 2Q24<br>Net Interest Margin1<br>Net Interest Income (ex. Loan Fees)<br>Loan Fees<br>Net Interest Income and Margin Trends Net Interest Margin Drivers<br>Net Interest Income / Net Interest Margin Commentary<br>1 Amounts calculated on a tax-equivalent basis using statutory federal tax rate of 21%<br>Dollars in thousands<br>Net Interest Income<br>• Net interest income growth for the first time since 3Q22, driven by<br>stable NIM and average earning asset growth<br>• Higher loan fees as loan payoffs increased<br>Net Interest Margin<br>• NIM stabilized QoQ as portfolio loan repricing increased<br>• Well-positioned for rate cuts and a more normalized yield curve<br>• Over $1 billion of adjustable funding tied to short-term rates<br>• Loan portfolio positioned to continue repricing higher
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Higher Asset Yields Drive<br>NIM Stabilization<br>6<br>$2,711 $2,857 $2,909 $2,961 $2,984<br>$755 $755 $753 $701 $692 $546 $408 $415 $434 $461<br>$4,012 $4,020 $4,077 $4,096 $4,137<br>2.91% 3.10% 3.23% 3.34% 3.49%<br>2Q23 3Q23 4Q23 1Q24 2Q24<br>$3,717 $3,723 $3,726 $3,729 $3,772<br>5.19% 5.26% 5.33% 5.38% 5.50%<br>5.09% 5.16% 5.25% 5.31% 5.42%<br>2Q23 3Q23 4Q23 1Q24 2Q24<br>$3,466 $3,611 $3,662 $3,662 $3,676<br>2.66% 2.99% 3.19% 3.32% 3.46%<br>2Q23 3Q23 4Q23 1Q24 2Q24<br>Loan Yield (ex. Loan Fees)2<br>Loan Repricing Increased Growth of High-Yielding Securities Portfolio<br>Deposit Costs Continue to Rise Funding Cost Pressures Continue<br>$595 $595<br>$630<br>$670 $673<br>4.24% 4.39% 4.63% 4.80% 4.94%<br>2Q23 3Q23 4Q23 1Q24 2Q24<br>Average Interest-Bearing Deposits Average Noninterest-Bearing Deposits<br>Average Borrowings Cost of Funds<br>Average Loans Loan Yield1 Average Investments Investment Yield1<br>Average Total Deposits Cost of Total Deposits<br>1 Amounts calculated on a tax-equivalent basis using statutory federal tax rate of 21%<br>2 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>Dollars in millions
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Revenue Growth Drives<br>Profitability Stabilization<br>7<br>PPNR ROA1<br>Pre-Provision Net Revenue (PPNR) Stabilization Revenue Growth for the First Time Since 3Q22<br>$32,530 $34,095 $32,893<br>$28,567<br>$25,872 $25,421 $25,314 $24,631 $24,996<br>$1,650<br>$1,387<br>$1,738<br>$1,943<br>$1,415 $1,726 $1,409 $1,550 $1,763<br>$34,180<br>$35,482 $34,631<br>$30,510<br>$27,287 $27,147 $26,723 $26,181 $26,759<br>2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24<br>$12,963<br>$11,417 $11,010 $10,899 $10,900<br>$9,816 $9,629 $8,873<br>$7,831 $8,115<br>1.16%<br>1.01%<br>0.96% 0.95% 0.94%<br>0.88%<br>0.85%<br>0.77%<br>0.69% 0.70%<br>2Q23 3Q23 4Q23 1Q24 2Q24<br>PPNR Net Income 1 ROA Net Interest Income Noninterest Income<br>1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>Dollars in thousands
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$8,589 $9,519 $9,615 $9,433 $9,675<br>$1,075<br>$1,101 $1,062 $1,057 $1,112 $1,092<br>$1,075 $1,236 $1,208 $900 $1,284<br>$1,075 $1,050 $875 $725<br>$2,598<br>$2,467 $2,777 $2,616 $2,763<br>$14,274<br>$15,237 $15,740 $15,189 $15,539<br>2Q23 3Q23 4Q23 1Q24 2Q24<br>Well-Controlled Expenses<br>8<br>1.28% 1.34% 1.37% 1.33% 1.35%<br>52.3%<br>56.1%<br>58.8% 58.2% 58.7%<br>2Q23 3Q23 4Q23 1Q24 2Q24<br>NIE / Avg. Assets2 Efficiency Ratio3<br>Highly Efficient Business Model<br>Despite Challenging Revenue Environment Well-Controlled Expenses YTD<br>Peer median efficiency ratio of 63%1 in 1Q24 Continuing to invest in people and technology<br>Salary and Employee Benefits Occupancy<br>Technology FDIC Insurance Assessment<br>1 Includes publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion as of March 31, 2024 (Source: S&P Capital IQ)<br>2 Annualized<br>3 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>Dollars in thousands<br>Other
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Deposit Growth Remains on Track YTD<br>9<br>21% 21% 20% 18% 18%<br>20% 21% 19% 21% 20%<br>24% 24% 25% 26% 25%<br>8% 7% 8%<br>9% 10%<br>27% 27% 28%<br>26% 27%<br>$3,578 $3,676 $3,710 $3,807 $3,808<br>2Q23 3Q23 4Q23 1Q24 2Q24<br>Noninterest-Bearing Transaction Interest-Bearing Transaction<br>Savings & Money Market Time<br>Brokered<br>• YTD deposit balances up 5.3% annualized<br>• YTD core deposit1 balances up 3.0% annualized<br>• Modest growth in noninterest bearing deposits in 2Q24<br>• Core deposit growth not always linear due to nature of client base<br>• Continued to leverage brokered deposits as needed to supplement core<br>deposit growth<br>Deposit Growth Continues to Track With Loan Growth YTD<br>1 Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000<br>Dollars in millions<br>Funding Repricing Summary (2Q24)<br>Immediately Adjustable Deposits $ 829<br>Derivatives Hedging 243<br> Total $ 1,072<br>Time Deposit Maturities (next 12 months) $ 358<br>Callable Brokered Deposits (over 4.50%) 168<br> Total $ 526<br>Funding Tied to Short-Term Rates<br>Other Repricing Opportunities
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Higher Loan Balances as<br>Demand Continues<br>10<br>$3,736 $3,722 $3,724<br>$3,784 $3,800<br>2Q23 3Q23 4Q23 1Q24 2Q24<br>Gross Loans<br>Dollars in millions<br>• 2Q24 loan balances up $16.2M, or 1.7% annualized<br>• YTD loan balances up $76.1M, or 4.1% annualized<br>• 2Q24 loan growth moderated as payoffs increased<br>• Loan-to-deposit ratio of 99.8%, down from 108.0% in 1Q23 and within<br>target range of 95% to 105%<br>YTD Loan Growth Tracks With Expectations<br>• Loan demand – strong loan demand continues<br>• Market and economic conditions – lower rate environment could drive<br>additional demand<br>• Pace of loan payoffs and paydowns – expect elevated payoff levels to<br>continue in the back half of 2024<br>• Pace of core deposit growth – continue to align loan growth with core<br>deposit growth over time<br>Loan Growth Outlook Drivers
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New Loan Originations Remain Strong<br>as Payoffs Increase<br>11<br>New Originations Continue to Exceed Advances<br>$47 $71 $71 $96 $91<br>$84<br>$87 $87 $67 $50<br>$131<br>$158 $158 $163<br>$141<br>2Q23 3Q23 4Q23 1Q24 2Q24<br>New Originations Advances<br>Loan Payoffs Increase<br>$54<br>$106 $102<br>$58<br>$105<br>$45<br>$60 $45<br>$44<br>$99 $45<br>$166<br>$147<br>$102<br>$150<br>2Q23 3Q23 4Q23 1Q24 2Q24<br>Payoffs Amortization/Paydowns<br>Dollars in millions<br>2Q24 Loan Growth Waterfall
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10%<br>20% 25%<br>17% 19%<br>9%<br>$57<br>$121<br>$152<br>$100 $116<br>$52<br>Less<br>Than<br>1 Year<br>1 to 2<br>Years<br>2 to 3<br>Years<br>3 to 4<br>Years<br>4 to 5<br>Years<br>5+<br>Years<br>22%<br>13% 15% 14% 14%<br>22%<br>$576<br>$341 $377 $375 $361<br>$581<br>Less<br>Than<br>1 Year<br>1 to 2<br>Years<br>2 to 3<br>Years<br>3 to 4<br>Years<br>4 to 5<br>Years<br>5+<br>Years<br>Loan Portfolio to Reprice Higher<br>Even If Interest Rates Decline<br>12<br>Fixed,<br>69%<br>Variable,<br>15%<br>Adjustable,<br>16%<br>Loan Portfolio Mix<br>Fixed-Rate Portfolio<br>($2.6B)<br>Variable-Rate Portfolio<br>($593M)<br>Adjustable-Rate Portfolio<br>($597M)<br>Years to Maturity<br>• Large fixed-rate portfolio<br>provides support to total loan<br>yields in a rates-down<br>environment<br>• $576M of fixed-rate loans<br>maturing over the next year, with<br>a weighted average yield of<br>5.29%<br>Variable-Rate Loan Floors<br>• Small variable-rate portfolio<br>limits immediate repricing<br>pressure in a rates-down<br>environment<br>• 80% of variable-rate portfolio<br>have rate floors, with over 70% of<br>the floors being above 5%<br>• 97% of variable-rate loans are<br>currently tied to SOFR or Prime<br>Adjustable-Rate<br>Repricing/Maturity Schedule<br>• Adjustable-rate loans likely to<br>reprice higher, even in a rates-down environment<br>• $57M of adjustable-rate loans<br>repricing or maturing over the<br>next year, with a weighted<br>average yield of 4.75%<br>Dollars in millions<br>WA<br>Yield 5.29% 4.85% 4.34% 4.99% 5.15% 4.26%<br>WA<br>Yield 4.75% 4.13% 4.55% 4.64% 5.00% 4.60%<br>9%<br>20% 25%<br>40%<br>6%<br>$42<br>$96<br>$118<br>$190<br>$28<br>Below<br>4%<br>4%-5% 5%-6% 6%-7% Above<br>7%
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Managing Multifamily and<br>Office-Related Risk<br>13 1<br>Includes formally subsidized properties (17%) and market rate properties with affordable set-asides (7%)<br>2 Excludes medical office of $91 million at June 30, 2024<br>Strong Multifamily Track Record in Stable Twin Cities Market Well-Managed CRE NOO Office Exposure2<br>Percent of Total<br>Loans Average Loan Size<br>5.3% $2.4M<br>CRE NOO Office by Geography<br>Twin Cities<br>Suburban<br>51%<br>Minneapolis-St. Paul CBD<br>13%<br>Minneapolis-St. Paul Non-CBD<br>20%<br>Out-of-State<br>16%<br>$200M<br>• Majority of CRE NOO office<br>exposure in the Twin Cities<br>suburbs<br>• Only 4 loans totaling $35M<br>located in central business<br>districts (CBD), with one on<br>Watch and one Substandard<br>• Only 4 loans totaling $31M<br>outside of Minnesota,<br>consisting of projects for<br>existing local clients<br>Average<br>Loan Size<br>Weighted<br>Average LTV<br>NCOs<br>(since 2005)<br>$3.3M 67% $62K<br>Multifamily Lending Approach in the Twin Cities<br>• Bank of choice in the Twin Cities with expertise and differentiated service model<br>• Greater tenant diversification compared to other asset classes<br>• Affordable housing makes up 24%1 of the multifamily portfolio<br>• Positive market trends with stabilizing vacancy rates, strong absorption, and<br>reduced construction = favorable outlook for occupancy and rent growth<br>• Market catalysts include relative affordability, low unemployment, strong<br>wages, and shortage of single-family housing<br>Twin Cities<br>Metro<br>92%<br>Greater<br>MN<br>4%<br>Other 4%<br>Location<br>Class A<br>40%<br>Class B<br>16%<br>Class C<br>40%<br>Construction<br>4%<br>Product<br>Type<br>NPAs/<br>Loans<br>0.00%<br>Weighted Average<br>LTV<br>62%
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1 Includes publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion as of March 31, 2024 (Source: S&P Capital IQ)<br>2 Nonaccrual loans plus loans 90 days past due and still accruing and foreclosed assets<br>Dollars in thousands<br>Superb Asset Quality Continues<br>14<br>$(3)<br>$116 $91<br>$(3) $(2)<br>0.00% 0.01% 0.01% 0.00% 0.00%<br>2Q23 3Q23 4Q23 1Q24 2Q24<br>Net Charge-Offs<br>Cumulative NCOs of $532K since 2019<br>Net Charge-offs (recoveries) % of Average Loans (annualized)<br>$50,701 $50,585 $50,494<br>$51,347 $51,949<br>1.36% 1.36% 1.36% 1.36% 1.37%<br>2Q23 3Q23 4Q23 1Q24 2Q24<br>Allowance for Credit Losses<br>Well-reserved compared to peer median<br>ACL/Loans of 1.13%1<br>Allowance for Credit Losses % of Gross Loans<br>$778 $749<br>$919<br>$269<br>$678<br>0.02% 0.02% 0.02% 0.01% 0.01%<br>2Q23 3Q23 4Q23 1Q24 2Q24<br>Nonperforming Assets2<br>Consistently low NPA levels<br>NPAs % of Assets
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Watch and Substandard Loans<br>Remain at Low Levels<br>15<br>C&I<br>1.6%<br>Multifamily<br>42.6%<br>CRE NOO<br>Office<br>29.0%<br>CRE NOO<br>Retail<br>21.1%<br>CRE OO<br>5.7%<br>$30<br>Million<br>Watch List Loans Substandard Loans<br>C&I<br>43.9%<br>CRE NOO<br>Office<br>27.7%<br>CRE NOO<br>Hotels<br>8.9%<br>CRE NOO<br>Retail<br>7.4%<br>CRE NOO<br>Other<br>7.1%<br>CRE OO<br>2.9% C&D<br>0.2%<br>1-4<br>Family<br>1.9%<br>$34<br>Million<br>Watch List Characteristics<br>Loan Balances Outstanding $30,436<br>% of Total Loans, Gross 0.8%<br>Number of Loans 7<br>Average Loan Size $4,348<br>Substandard Characteristics<br>Loan Balances Outstanding $33,908<br>% of Total Loans, Gross 0.9%<br>Number of Loans 20<br>Average Loan Size $1,695<br>% of Bank Risk-Based Capital 5.92%<br>$27,215 $26,877 $26,485<br>$21,624<br>$30,436<br>2Q23 3Q23 4Q23 1Q24 2Q24<br>$33,821 $35,621 $35,858 $33,829 $33,908<br>2Q23 3Q23 4Q23 1Q24 2Q24<br>Dollars in thousands
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Strong Capital Ratios<br>16<br>9.47% 9.62% 9.57% 9.66% 9.66%<br>8.72% 9.07% 9.16% 9.21% 9.41%<br>13.50%<br>13.88% 13.97% 14.00% 14.16%<br>7.39% 7.61% 7.73% 7.72% 7.90%<br>2Q23 3Q23 4Q23 1Q24 2Q24<br>Total Risk-Based Capital Ratio Common Equity Tier 1 Capital Ratio<br>Tier 1 Leverage Ratio<br>Building Capital in the Current Environment<br>Tangible Common Equity Ratio1<br>1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>Recent Capital Actions<br>• Repurchased 252,707 shares of common stock ($2.9 million) in 2Q24 at a<br>weighted average price of $11.48 per share<br>• $15.3 million remaining under current share repurchase authorization<br>• On July 23, 2024, the Board of Directors extended the expiration date of<br>the current share repurchase authorization from August 16, 2024 to<br>August 20, 2025<br>Capital Priorities<br>1<br>3<br>2<br>Organic Growth<br>Share Repurchases<br>M&A<br>4 Dividends<br>Drive profitability by supporting a proven organic loan growth<br>engine<br>Opportunistically return capital to shareholders by buying back<br>stock based on valuation, capital levels, and other uses of capital<br>Review and evaluate corporate development opportunities that<br>complement BWB’s business model<br>Have not historically paid a common stock dividend given loan<br>growth opportunities
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Near-Term Expectations<br>17<br>• Low-to-mid-single digit loan growth for full-year 2024<br>• Focus on aligning loan growth with core deposit growth<br>• Target loan-to-deposit ratio between 95% and 105%<br>Balance Sheet<br>Growth<br>• Continued NIM stabilization in the current interest rate environment<br>• Positioned to benefit from potential rate cuts and a normalizing yield curve<br>• Dependent on the path of interest rates, shape of the yield curve, and pace of core deposit growth and loan payoffs<br>Net Interest<br>Margin<br>• Noninterest expense growth throughout 2024 with similar trajectory as 2023, driven by continued investments in<br>people and technology initiatives<br>• Full-year noninterest expense growth aligned with asset growth<br>• Provision expense to align with loan growth and overall asset quality<br>Expenses<br>• Maintain strong tangible common equity and CET1 ratios<br>• Ongoing evaluation of potential share repurchases based on valuation, capital levels, and other uses of capital<br>Capital<br>Levels
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2024 Strategic Priorities<br>18<br>Optimize Balance Sheet for<br>Longer Term Profitable Growth<br>Continue to Gain Loan and<br>Deposit Market Share<br>Generate Incremental<br>Operational Efficiencies While<br>Investing in the Business<br>Scale ERM Function and<br>Monitor Asset Quality Risks<br>• Opportunistically gather core<br>deposits and build high quality<br>lending relationships<br>• Grow loan balances inline with<br>core deposits over time<br>• Generate more profitable growth<br>in a normalized interest rate<br>environment<br>• Expand lending focus on high<br>quality affordable housing sector<br>• Execute on new C&I initiatives<br>through targeted verticals,<br>including a network of women<br>business leaders and<br>entrepreneurial operating system<br>implementers<br>• Identify M&A opportunities and<br>potential markets that enhance<br>BWB’s overall business model<br>• Identify opportunities across all<br>functions to improve operational<br>efficiency<br>• Make proactive investments to<br>scale the business and position for<br>longer term growth<br>• Implement key IT investments,<br>including new CRM platform and<br>upgraded retail and small business<br>online banking solution<br>• Continue to focus on scaling the<br>enterprise risk management<br>function<br>• Monitor the loan portfolio for signs<br>of credit weakness, especially in<br>CRE and multifamily portfolios<br>• Ongoing covenant testing and<br>assess repricing risk on maturing<br>loans<br>YTD Progress<br>• Core deposit growth1 of 3.0%<br>annualized<br>• Loan growth of 4.1% annualized<br>• C&I loan balances up 23.7%<br>annualized<br>• Launched a new CRM platform to<br>enhance the client experience and<br>create new efficiencies<br>• Net charge-off ratio of 0.00%<br>• NPAs-to-assets of 0.01%<br>1 Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000
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APPENDIX<br>19
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Interest Rate Sensitivity<br>20<br>Estimated Change in NII From<br>Immediate Interest Rate Shocks<br>+100 bps<br>-100 bps<br>Liability-sensitive balance sheet well positioned for potential rate cuts and a<br>normalizing yield curve<br>Loan Portfolio Considerations<br>• Loan portfolio most sensitive to changes in the 3- to 5-year portion of the<br>yield curve<br>• Loan portfolio to reprice higher even in a rates-down environment given<br>larger fixed-rate portfolio and smaller variable-rate portfolio<br>• $633 million of fixed- and adjustable-rate loans scheduled to reprice over<br>the next year<br>• Leveraging prepayment penalties on new loan originations to help<br>maintain benefit of higher rates over time<br>Funding Considerations<br>• Deposit base is more sensitive to changing interest rates<br>• Overall momentum in core deposit growth since March 2023<br>• Continue to supplement core deposits with wholesale funding to support<br>loan growth over time<br>• Brokered deposits generally include call options to protect net interest<br>margin as interest rates decline<br>• Over $1 billion of adjustable funding tied to short-term rates<br>-200 bps<br>(1.2)%<br>+2.1%<br>1Q24<br>+4.1%<br>(2.1)%<br>+3.3%<br>2Q24<br>+6.3%<br>(1.9)%<br>+4.0%<br>2Q23<br>+7.5%<br>(0.6)%<br>+2.5%<br>3Q23<br>+4.9%<br>-300 bps +11.2% +7.2% +6.5% +10.0%<br>(1.3)%<br>+3.0%<br>4Q23<br>+5.9%<br>+8.8%
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Well-Diversified Loan Portfolio<br>with Multifamily Expertise<br>21 Dollars in millions<br>CRE NOO<br>28.2%<br>Multifamily<br>37.0%<br>C&D<br>5.1%<br>1-4 Family<br>Mortgage<br>11.0%<br>CRE OO<br>4.9%<br>C&I<br>13.6%<br>Consumer<br>& Other<br>0.2%<br>Loan Mix<br>by Type<br>$3.8<br>Billion<br>• Strong C&I growth in 2Q24 with YTD balances up 23.7% annualized<br>• Continued migration out of Construction & Development as projects completed the construction phase<br>• Remain comfortable with the diversity of the loan portfolio, including CRE and Multifamily concentrations, given<br>portfolio performance and expertise<br>2Q24 Loan Growth by Type (vs. 1Q24)<br>$(72)<br>$(1)<br>$0<br>$3<br>$15<br>$34<br>$36<br>Multifamily<br>1-4 Family Mortgage<br>Construction & Development<br>C&I<br>CRE Owner Occupied<br>CRE Nonowner Occupied<br>Consumer & Other
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High Quality Securities Portfolio<br>22<br>41% 38% 38% 38% 34%<br>24% 22% 22% 21%<br>22%<br>21% 22%<br>22% 21%<br>23%<br>14% 18%<br>18% 20% 21%<br>$538 $553<br>$604 $633 $601<br>2Q23 3Q23 4Q23 1Q24 2Q24<br>Mortgage-Backed Securities Municipal Bonds<br>Corporate Securities Other<br>Securities Available for Sale Portfolio (dollars in millions)<br>AAA,<br>29%<br>AA,<br>36%<br>A,<br>3%<br>BBB,<br>14%<br>BB, 1%<br>NR,<br>17%<br>Rating Mix<br>Derivatives Portfolio Offsetting AOCI Impact (dollars in thousands)<br>$(52,064)<br>$(43,522)<br>$28,203 $26,708<br>$(20,908)<br>$(15,320)<br>2Q23 2Q24<br>MTM Securities MTM Derivatives Net Impact on AOCI1<br>• No held-to-maturity securities<br>• Securities portfolio average duration of 4.7 years<br>• Average securities portfolio yield of 4.93%<br>• Unrealized losses on AFS securities were 10.0% of<br>stockholders’ equity<br>• AOCI / Total RBC of 2.6% vs. peer bank median of 8.4%2<br>1 Includes the tax-effected impact of $8,430 in 2Q23 and $6,179 in 2Q24<br>2 1Q24 median for publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion (Source: S&P Capital IQ)
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Ample Liquidity and Borrowing Capacity<br>23 1 Excludes $169M of pledged securities at June 30, 2024<br>Dollars in millions<br>9.6% 10.2% 11.5% 12.1% 11.3%<br>33.1%<br>37.6%<br>37.0% 35.5% 36.1%<br>$1,962<br>$2,181 $2,234 $2,249 $2,222<br>2Q23 3Q23 4Q23 1Q24 2Q24<br>Off-Balance Sheet Liquidity as a % of Assets<br>On-Balance Sheet Liquidity as a % of Assets<br>Liquidity Position with 2.6x Coverage of Uninsured Deposits Significantly Enhanced Liquidity Position Since 2022<br>Funding Source 6/30/2024 12/31/2022 Change<br>Cash and Cash Equivalents $ 9 7 $ 4 8 $ 4 9<br>Unpledged Securities1<br> 432 549 (117)<br>FHLB Capacity 451 391 6 0<br>FRB Discount Window 1,016 158 858<br>Unsecured Lines of Credit 200 208 (8)<br>Secured Line of Credit 26 26 -<br> Total $ 2,222 $ 1,380 $ 842<br>Available Balance
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Reconciliation of Non-GAAP Financial<br>Measures – Efficiency, TCE, Core Loan<br>Yield, and ROATCE<br>24 Dollars in thousands<br>Efficiency Ratio<br>June 30,<br>2023<br>September 30,<br>2023<br>December 31,<br>2023<br>March 31,<br>2024<br>June 30,<br>2024<br>Noninterest Expense $ 14,274 $ 15,237 $ 15,740 $ 15,189 $ 15,539 Net Income Available to Common Shareholders<br>Less: Amortization Intangible Assets (34) (9) (9) (9) (8)<br>Adjusted Noninterest Expense $ 14,240 $ 15,228 $ 15,731 $ 15,180 $ 15,531 Average Total Shareholders' Equity<br>Less: Average Preferred Stock<br>Net Interest Income $ 25,872 $ 25,421 $ 25,314 $ 24,631 $ 24,996 Average Total Common Shareholders' Equity<br>Noninterest Income 1,415 1,726 1,409 1,550 1,763 Less: Effects of Average Intangible Assets<br>Less: (Gain) Loss on Sales of Securities (50) - 2 7 (93) (320) Average Tangible Common Equity<br>Adjusted Operating Revenue $ 27,237 $ 27,147 $ 26,750 $ 26,088 $ 26,439 Annualized Return on Average Tangible Common Equity<br> Efficiency Ratio 52.3% 56.1% 58.8% 58.2% 58.7%<br>Tangible Common Equity &<br>Tangible Common Equity/Tangible Assets<br>June 30,<br>2023<br>September 30,<br>2023<br>December 31,<br>2023<br>March 31,<br>2024<br>June 30,<br>2024<br>Total Shareholders' Equity $ 409,126 $ 415,960 $ 425,515 $ 433,611 $ 439,241<br>Less: Preferred Stock (66,514) (66,514) (66,514) (66,514) (66,514)<br>Total Common Shareholders' Equity 342,612 349,446 359,001 367,097 372,727<br>Less: Intangible Assets (2,832) (2,823) (2,814) (2,806) (2,797)<br>Tangible Common Equity $ 339,780 $ 346,623 $ 356,187 $ 364,291 $ 369,930<br>Total Assets $ 4,603,185 $ 4,557,070 $ 4,611,990 $ 4,723,109 $ 4,687,035<br>Less: Intangible Assets (2,832) (2,823) (2,814) (2,806) (2,797)<br>Tangible Assets $ 4,600,353 $ 4,554,247 $ 4,609,176 $ 4,720,303 $ 4,684,238<br>Tangible Common Equity/Tangible Assets 7.39% 7.61% 7.73% 7.72% 7.90%<br>$ 435,585<br> (66,514)<br>$ 369,071<br> (2,802)<br>$ 366,269<br>7.80%<br>As of and for the quarter ended,<br>ROATCE<br>As of and for the quarter ended,<br>June 30,<br>2024<br>$ 7,101<br>As of and for the quarter ended,<br>Core Loan Yield<br>June 30,<br>2023<br>September 30,<br>2023<br>December 31,<br>2023<br>March 31,<br>2024<br>June 30,<br>2024<br>Loan Interest Income (Tax-Equivalent Basis) $ 48,066 $ 49,326 $ 50,022 $ 49,858 $ 51,592<br>Less: Loan Fees (941) (914) (751) (608) (767)<br> Core Loan Interest Income $ 47,125 $ 48,412 $ 49,271 $ 49,250 $ 50,825<br>Average Loans $ 3,716,534 $ 3,722,594 $ 3,726,126 $ 3,729,355 $ 3,771,768<br>Core Loan Yield 5.09% 5.16% 5.25% 5.31% 5.42%<br>As of and for the quarter ended,
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Reconciliation of Non-GAAP Financial<br>Measures – PPNR<br>25 Dollars in thousands<br>Pre-Provision Net Revenue<br>June 30,<br>2023<br>September 30,<br>2023<br>December 31,<br>2023<br>March 31,<br>2024<br>June 30,<br>2024<br>Noninterest Income $ 1,415 $ 1,726 $ 1,409 $ 1,550 $ 1,763<br>Less: (Gain) Loss on Sales on Securities (50) - 27 (93) (320)<br>Less: FHLB Advance Prepayment Income - (493) - - -<br> Total Operating Noninterest Income 1,365 1,233 1,436 1,457 1,443<br>Plus: Net Interest Income 25,872 25,421 25,314 24,631 24,996<br> Net Operating Revenue $ 27,237 $ 26,654 $ 26,750 $ 26,088 $ 26,439<br>Noninterest Expense $ 14,274 $ 15,237 $ 15,740 $ 15,189 $ 15,539<br> Total Operating Noninterest Expense $ 14,274 $ 15,237 $ 15,740 $ 15,189 $ 15,539<br>Pre-Provision Net Revenue $ 12,963 $ 11,417 $ 11,010 $ 10,899 $ 10,900<br>Plus:<br> Non-Operating Revenue Adjustments 5 0 493 (27) 93 320<br>Less:<br> Provision for (Recovery of) Credit Losses 5 0 (600) (250) 750 600<br> Provision for Income Taxes 3,147 2,881 2,360 2,411 2,505<br>Net Income $ 9,816 $ 9,629 $ 8,873 $ 7,831 $ 8,115<br>Average Assets $ 4,483,662 $ 4,504,937 $ 4,567,446 $ 4,592,838 $ 4,646,517<br>Pre-Provision Net Revenue Return on Average Assets 1.16% 1.01% 0.96% 0.95% 0.94%<br>As of and for the quarter ended,
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Reconciliation of Non-GAAP Financial<br>Measures – Tangible Book Value<br>26 Dollars in thousands<br>Tangible Book Value Per Share<br>December 31,<br>2016<br>March 31,<br>2017<br>June 30,<br>2017<br>September 30,<br>2017<br>December 31,<br>2017<br>March 31,<br>2018<br>June 30,<br>2018<br>September 30,<br>2018<br>December 31,<br>2018<br>March 31,<br>2019<br>Book Value Per Common Share $ 4.69 $ 4.91 $ 5.23 $ 5.43 $ 5.56 $ 6.62 $ 6.85 $ 7.01 $ 7.34 $ 7.70<br>Less: Effects of Intangible Assets (0.16) (0.16) (0.16) (0.16) (0.16) (0.13) (0.12) (0.12) (0.12) (0.12)<br>Tangible Book Value Per Common Share $ 4.53 $ 4.75 $ 5.07 $ 5.27 $ 5.40 $ 6.49 $ 6.73 $ 6.89 $ 7.22 $ 7.58<br>Total Common Shares 24,589,861 24,589,861 24,589,861 24,629,861 24,679,861 30,059,374 30,059,374 30,059,374 30,097,274 30,097,674<br>Tangible Book Value Per Share<br>June 30,<br>2019<br>September 30,<br>2019<br>December 31,<br>2019<br>March 31,<br>2020<br>June 30,<br>2020<br>September 30,<br>2020<br>December 31,<br>2020<br>March 31,<br>2021<br>June 30,<br>2021<br>September 30,<br>2021<br>Book Value Per Common Share $ 7.90 $ 8.20 $ 8.45 $ 8.61 $ 8.92 $ 9.25 $ 9.43 $ 9.92 $ 10.33 $ 10.73<br>Less: Effects of Intangible Assets (0.12) (0.12) (0.12) (0.12) (0.12) (0.12) (0.12) (0.12) (0.12) (0.11)<br>Tangible Book Value Per Common Share $ 7.78 $ 8.08 $ 8.33 $ 8.49 $ 8.80 $ 9.13 $ 9.31 $ 9.80 $ 10.21 $ 10.62<br>Total Common Shares 28,986,729 28,781,162 28,973,572 28,807,375 28,837,560 28,710,775 28,143,493 28,132,929 28,162,777 28,066,822<br>Tangible Book Value Per Share<br>December 31,<br>2021<br>March 31,<br>2022<br>June 30,<br>2022<br>September 30,<br>2022<br>December 31,<br>2022<br>March 31,<br>2023<br>June 30,<br>2023<br>September 30,<br>2023<br>December 31,<br>2023<br>March 31,<br>2024<br>Book Value Per Common Share $ 11.09 $ 11.12 $ 11.14 $ 11.44 $ 11.80 $ 12.05 $ 12.25 $ 12.47 $ 12.94 $ 13.30<br>Less: Effects of Intangible Assets (0.11) (0.11) (0.11) (0.11) (0.11) (0.10) (0.10) (0.10) (0.10) (0.10)<br>Tangible Book Value Per Common Share $ 10.98 $ 11.01 $ 11.03 $ 11.33 $ 11.69 $ 11.95 $ 12.15 $ 12.37 $ 12.84 $ 13.20<br>Total Common Shares 28,206,566 28,150,389 27,677,372 27,587,978 27,751,950 27,845,244 27,973,995 28,015,505 27,748,965 27,589,827<br>As of and for the<br>quarter ended,<br>Tangible Book Value Per Share<br>June 30,<br>2024<br>Book Value Per Common Share $ 13.63<br>Less: Effects of Intangible Assets (0.10)<br>Tangible Book Value Per Common Share $ 13.53<br>Total Common Shares 27,348,049<br>As of and for the quarter ended,<br>As of and for the quarter ended,<br>As of and for the quarter ended,
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