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

October 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 October 23, 2024, Bridgewater Bancshares, Inc. (the “Company”) issued a press release announcing its financial results as of and for the three and nine months ended September 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 October 23, 2024, in its 2024 third 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 December 2, 2024, to shareholders of record of the Series A Preferred Stock at the close of business on November 15, 2024.

Item 9.01 Financial Statements and Exhibits.

(d)****Exhibits

Exhibit 99.1	Press Release of Bridgewater Bancshares, Inc., dated October 23, 2024, regarding third quarter 2024 financial results
Exhibit 99.2	Earnings Presentation dated October 23, 2024
---	---
Exhibit 104	Cover Page Interactive Data File (embedded within the Inline XBRL document)
---	---

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: October 23, 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

October 23, 2024

Bridgewater Bancshares, Inc. Announces Third Quarter 2024 Net Income of $8.7 Million, $0.27 Diluted Earnings Per Common Share

Third Quarter 2024 Highlights

●	Tangible book value per share^(1)^ of $13.96 for the third quarter of 2024, an increase of $0.43, or 12.8% annualized, compared to $13.53 for the second quarter of 2024.
●	Pre-provision net revenue^(1)^ increased $489,000, or 4.5%, from the second quarter of 2024.
---	---
●	Net interest income increased $603,000, or 2.4%, from the second quarter of 2024.
---	---
●	Net interest margin (on a fully tax-equivalent basis) of 2.24% for the third quarter of 2024, in line with the second quarter of 2024.
---	---
●	Core deposits^(2)^increased by $93.6 million, or 14.4% annualized, from the second quarter of 2024. Total deposits decreased by $60.3 million from the second quarter of 2024, primarily driven by a decrease in brokered deposits of $131.3 million.
---	---
●	Gross loans decreased $114.8 million from the second quarter of 2024, primarily driven by elevated levels of loan payoffs.
---	---
●	Loan-to-deposit ratio of 98.3%, compared to 99.8% at June 30, 2024.
---	---
●	Efficiency ratio^(1)^ of 58.0%, down from 58.7% for the second quarter of 2024.
---	---
●	No provision for credit losses on loans was recorded in the third quarter of 2024. The allowance for credit losses on loans to total loans was 1.38% at September 30, 2024, compared to 1.37% at June 30, 2024.
---	---
●	Annualized net loan charge-offs as a percentage of average loans of 0.10% for the third quarter of 2024, compared to 0.00% for the second quarter of 2024, primarily driven by one central business district office loan.
---	---
●	Nonperforming assets to total assets of 0.19% at September 30, 2024, compared to 0.01% at June 30, 2024.
---	---
●	Announced the strategic acquisition of First Minnetonka City Bank. Received all required regulatory approvals in October 2024 and expect to close on the transaction during the fourth quarter of 2024.
---	---

(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.
---	---

St. Louis Park, MN – Bridgewater Bancshares, Inc. (Nasdaq: BWB) (the Company), the parent company of Bridgewater Bank (the Bank), today announced net income of $8.7 million for the third quarter of 2024, compared to $8.1 million for the second quarter of 2024, and $9.6 million for the third quarter of 2023. Earnings per diluted common share were $0.27 for the third quarter of 2024, compared to $0.26 for the second quarter of 2024, and $0.30 for the third quarter of 2023.

Page 1 of 17

“Bridgewater’s third quarter results were highlighted by robust core deposit growth and a stable net interest margin amid an improving interest rate backdrop following the Fed’s rate cut in September,” said Chairman and Chief Executive Officer, Jerry Baack. “As a result, we generated improved net interest income and pre-provision net revenue growth. Asset quality also remained a strength as we continued to see improving multifamily trends in the Twin Cities, such as declining vacancy rates.

“In August, we were excited to announce the signing of a definitive agreement for the acquisition of First Minnetonka City Bank, which we expect to close during the fourth quarter of 2024. This deal brings several strategic benefits including a low-cost, core deposit base and balance sheet optionality. When combined with the strong core deposit growth we have generated year-to-date, we believe we will have an enhanced funding and liquidity profile that positions us well moving forward.”

Key Financial Measures


		As of and for the Three Months Ended										As of and for the Nine Months Ended
		September 30,			June 30,			September 30,				September 30,			September 30,
	****	2024			2024			2023			****	2024		****	2023
Per Common Share Data
Basic Earnings Per Share		$	0.28		$	0.26		$	0.31			$	0.79		$	1.01
Diluted Earnings Per Share			0.27			0.26			0.30				0.77			0.99
Book Value Per Share			14.06			13.63			12.47				14.06			12.47
Tangible Book Value Per Share ^(1)^			13.96			13.53			12.37				13.96			12.37

Financial Ratios
Return on Average Assets ^(2)^			0.73	%		0.70	%		0.85	%			0.71	%		0.93	%
Pre-Provision Net Revenue Return on Average Assets ^(1)(2)^			0.96			0.94			1.01				0.95			1.22
Return on Average Shareholders' Equity ^(2)^			7.79			7.49			9.23				7.55			10.19
Return on Average Tangible Common Equity^(1)(2)^			8.16			7.80			9.92				7.87			11.07
Net Interest Margin^(3)^			2.24			2.24			2.32				2.24			2.47
Core Net Interest Margin ^(1)(3)^			2.16			2.17			2.24				2.17			2.39
Cost of Total Deposits			3.58			3.46			2.99				3.45			2.57
Cost of Funds			3.54			3.49			3.10				3.46			2.81
Efficiency Ratio^(1)^			58.0			58.7			56.1				58.3			51.2
Noninterest Expense to Average Assets ^(2)^			1.33			1.35			1.34				1.34			1.30
Tangible Common Equity to Tangible Assets ^(1)^			8.17			7.90			7.61				8.17			7.61
Common Equity Tier 1 Risk-based Capital Ratio (Consolidated) ^(4)^			9.79			9.41			9.07				9.79			9.07

Balance Sheet and Asset Quality (dollars in thousands)
Total Assets		$	4,691,517		$	4,687,035		$	4,557,070			$	4,691,517		$	4,557,070
Total Loans, Gross			3,685,590			3,800,385			3,722,271				3,685,590			3,722,271
Deposits			3,747,442			3,807,712			3,675,509				3,747,442			3,675,509
Loan to Deposit Ratio			98.3	%		99.8	%		101.3	%			98.3	%		101.3	%
Net Loan Charge-Offs to Average Loans ^(2)^			0.10			0.00			0.01				0.03			0.00
Nonperforming Assets to Total Assets^(5)^			0.19			0.01			0.02				0.19			0.02
Allowance for Credit Losses to Total Loans			1.38			1.37			1.36				1.38			1.36

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

Page 2 of 17

Income Statement

Net Interest Margin and Net Interest Income

Net interest margin (on a fully tax-equivalent basis) for the third quarter of 2024 was 2.24%, stable with the second quarter of 2024, and an eight basis point decline from 2.32% in the third 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 2.16% for the third quarter of 2024, a one basis point decline from 2.17% in the second quarter of 2024, and an eight basis point decline from 2.24% in the third quarter of 2023.

●	Net interest margin has remained stable at 2.24% each quarter in 2024.
●	The year-over-year decline in the margin was primarily due to higher funding costs, offset partially by higher earning asset yields.
---	---

Net interest income was $25.6 million for the third quarter of 2024, an increase of $603,000 from $25.0 million in the second quarter of 2024, and an increase of $178,000 from $25.4 million in the third quarter of 2023.

●	The linked-quarter increase in net interest income was primarily due to increased cash balances, higher yields in the securities and loan portfolios and increased loan fees due to elevated loan payoffs, offset partially by decreased loan balances and higher rates paid on deposits.
●	The year-over year increase in net interest income was primarily due to increased cash balances, growth and higher yields in the securities portfolio, and higher yields on loans, offset partially by growth and higher rates on deposits.
---	---

Interest income was $63.0 million for the third quarter of 2024, an increase of $2.1 million from $60.9 million in the second quarter of 2024, and an increase of $6.2 million from $56.8 million in the third quarter of 2023.

●	The yield on interest earning assets (on a fully tax-equivalent basis) was 5.48% in the third quarter of 2024, compared to 5.41% in the second quarter of 2024 and 5.14% in the third quarter of 2023.
●	The linked-quarter increase in the yield on interest earning assets was primarily due to continued repricing of assets at accretive yields.
---	---
●	The year-over-year increase in the yield on interest earning assets was primarily due to the purchase of higher yielding securities and the repricing of the loan and securities portfolios in the higher interest rate environment.
---	---
●	Loan interest income and loan fees remained one of the primary contributing factors to the changes in the yield on interest earning assets. The aggregate loan yield increased to 5.57% in the third quarter of 2024, seven basis points higher than 5.50% in the second quarter of 2024, and 31 basis points higher than 5.26% in the third quarter of 2023.
---	---
●	The core loan yield continued to rise as new loan originations and the existing portfolio reprice in the higher rate environment.
---	---

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


	Three Months Ended
	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Interest	5.47	%	5.42	%	5.31	%	5.25	%	5.16	%
Fees	0.10		0.08		0.07		0.08		0.10
Yield on Loans	5.57	%	5.50	%	5.38	%	5.33	%	5.26	%

Interest expense was $37.4 million for the third quarter of 2024, an increase of $1.5 million from $35.9 million in the second quarter of 2024, and an increase of $6.0 million from $31.4 million in the third quarter of 2023.

●	The cost of interest bearing liabilities was 4.27% in the third quarter of 2024, compared to 4.19% in the second quarter of 2024 and 3.81% in the third quarter of 2023.
●	The linked-quarter increase in the cost of interest bearing liabilities was primarily due to higher rates paid on deposits, offset partially by a decrease in the utilization of overnight borrowings.
---	---
●	The year-over-year increase in the cost of interest bearing liabilities was primarily due to continued deposit repricing in the higher rate environment.
---	---

Page 3 of 17

Interest expense on deposits was $34.2 million for the third quarter of 2024, an increase of $2.6 million from $31.6 million in the second quarter of 2024, and an increase of $7.0 million from $27.2 million in the third quarter of 2023.

●	The cost of total deposits was 3.58% in the third quarter of 2024, compared to 3.46% in the second quarter of 2024 and 2.99% in the third quarter of 2023.
●	The linked-quarter increase in the cost of total deposits was primarily due to continued client demand for higher interest rates and increased competition.
---	---
●	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.
---	---

Provision for Credit Losses

The provision for credit losses on loans was $-0- for the third quarter of 2024, compared to $600,000 for the second quarter of 2024 and $-0- for the third quarter of 2023.

●	No provision for credit losses on loans was recorded in the third quarter of 2024. Although loans decreased during the quarter, increased loss rates and other qualitative factor adjustments resulted in no provision for the quarter.
●	The allowance for credit losses on loans to total loans was 1.38% at September 30, 2024, compared to 1.37% at June 30, 2024 and 1.36% at September 30, 2023.
---	---

The provision for credit losses for off-balance sheet credit exposures was $-0- for the third quarter of 2024, compared to $-0- for the second quarter of 2024, and a negative provision of $600,000 for the third quarter of 2023.

●	No provision was recorded during the third 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 $1.5 million for the third quarter of 2024, a decrease of $241,000 from $1.8 million for the second quarter of 2024, and a decrease of $204,000 from $1.7 million for the third quarter of 2023.

●	The linked-quarter decrease was primarily due to a net loss on sale of securities in the third quarter and a net gain on sale of securities in the second quarter.
●	The year-over-year decrease was primarily due to $493,000 of FHLB prepayment income recognized in the previous year which did not reoccur, offset partially by higher letter of credit fees, an increase in the cash surrender value of bank-owned life insurance and an increase in other income.
---	---

Noninterest Expense

Noninterest expense was $15.8 million for the third quarter of 2024, an increase of $221,000 from $15.5 million for the second quarter of 2024 and an increase of $523,000 from $15.2 million for the third quarter of 2023.

●	The linked-quarter increase was primarily due to increases in professional and consulting fees related to the acquisition of First Minnetonka City Bank and salaries and employee benefits, offset partially by a decrease in data processing and derivative collateral fees.
●	The year-over-year increase was primarily attributable to increases in salaries and employee benefits, higher professional and consulting fees relating to the acquisition of First Minnetonka City Bank and increases in information technology and telecommunications and marketing and advertising expenses, offset partially by a decrease in the FDIC insurance assessment and lower derivative collateral fees.
---	---
●	The efficiency ratio, a non-GAAP financial measure, was 58.0% for the third quarter of 2024, compared to 58.7% for the second quarter of 2024, and 56.1% for the third quarter of 2023.
---	---
●	The Company had 265 full-time equivalent employees at September 30, 2024, compared to 258 at June 30, 2024, and 255 at September 30, 2023.
---	---

Income Taxes

The effective combined federal and state income tax rate was 23.6% for both the second and third quarter of 2024, compared to 23.0% for the third quarter of 2023.

Page 4 of 17

Balance Sheet

Loans


(dollars in thousands)	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Commercial	$	493,403	$	518,762	$	483,069	$	464,061	$	459,854
Construction and Land Development		118,596		134,096		200,970		232,804		294,818
1 - 4 Family Construction		45,822		60,551		65,606		65,087		64,463
Real Estate Mortgage:
1 - 4 Family Mortgage		421,179		416,944		417,773		402,396		404,716
Multifamily		1,379,814		1,404,835		1,389,345		1,388,541		1,378,669
CRE Owner Occupied		182,239		185,988		182,589		175,783		159,485
CRE Nonowner Occupied		1,032,142		1,070,050		1,035,702		987,306		951,263
Total Real Estate Mortgage Loans		3,015,374		3,077,817		3,025,409		2,954,026		2,894,133
Consumer and Other		12,395		9,159		9,151		8,304		9,003
Total Loans, Gross		3,685,590		3,800,385		3,784,205		3,724,282		3,722,271
Allowance for Credit Losses on Loans		(51,018)		(51,949)		(51,347)		(50,494)		(50,585)
Net Deferred Loan Fees		(5,705)		(6,214)		(6,356)		(6,573)		(7,222)
Total Loans, Net	$	3,628,867	$	3,742,222	$	3,726,502	$	3,667,215	$	3,664,464

Total gross loans at September 30, 2024 were $3.69 billion, a decrease of $114.8 million, or 3.0%, over total gross loans of $3.80 billion at June 30, 2024, and a decrease of $36.7 million, or 1.0%, over total gross loans of $3.72 billion at September 30, 2023.

●	The decrease in the loan portfolio during the third quarter of 2024 was due to elevated loan payoffs.

Deposits


(dollars in thousands)	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Noninterest Bearing Transaction Deposits	$	713,309	$	705,175	$	698,432	$	756,964	$	754,297
Interest Bearing Transaction Deposits		805,756		752,568		783,736		692,801		780,863
Savings and Money Market Deposits		980,345		943,994		979,773		935,091		872,534
Time Deposits		347,080		373,713		352,510		300,651		265,737
Brokered Deposits		900,952		1,032,262		992,774		1,024,441		1,002,078
Total Deposits	$	3,747,442	$	3,807,712	$	3,807,225	$	3,709,948	$	3,675,509

Total deposits at September 30, 2024 were $3.75 billion, a decrease of $60.3 million, or 1.6%, over total deposits of $3.81 billion at June 30, 2024, and an increase of $71.9 million, or 2.0%, over total deposits of $3.68 billion at September 30, 2023.

●	Core deposits, defined as total deposits excluding brokered deposits and time deposits greater than $250,000, increased $93.6 million, or 14.4% annualized, from the second quarter of 2024. Growth in core deposits was due to both increased balances of existing clients and new client acquisitions. On a year-to-date basis, core deposits increased by $131.2 million, or 6.9% annualized. Based on the nature of the Company’s client base, core deposit balances can fluctuate from quarter to quarter, as deposit growth is not always linear.
●	Brokered deposits, which declined by $131.3 million, or 12.7%, in the current quarter, continue to be used as a supplemental funding source, as needed.
---	---
●	Uninsured deposits were 25.0% of total deposits as of September 30, 2024, compared to 22.5% of total deposits as of June 30, 2024.
---	---

Page 5 of 17

Liquidity

Total on- and off-balance sheet liquidity was $2.29 billion as of September 30, 2024, compared to $2.22 billion at June 30, 2024 and $2.18 billion at September 30, 2023.


Primary Liquidity—On-Balance Sheet	****	September 30, 2024		****	June 30, 2024		****	March 31, 2024		****	December 31, 2023			September 30, 2023
(dollars in thousands)										****
Cash and Cash Equivalents		$	167,869		$	97,237		$	105,784		$	96,594		$	77,617
Securities Available for Sale			664,715			601,057			633,282			604,104			553,076
Less: Pledged Securities			(146,144)			(169,095)			(169,479)			(170,727)			(164,277)
Total Primary Liquidity		$	686,440		$	529,199		$	569,587		$	529,971		$	466,416
Ratio of Primary Liquidity to Total Deposits			18.3	%		13.9	%		15.0	%		14.3	%		12.7	%

Secondary Liquidity—Off-Balance Sheet Borrowing Capacity	****												****
Net Secured Borrowing Capacity with the FHLB		$	509,223		$	451,171		$	446,801		$	498,736		$	516,501
Net Secured Borrowing Capacity with the Federal Reserve Bank			867,955			1,015,873			1,006,010			979,448			1,022,128
Unsecured Borrowing Capacity with Correspondent Lenders			200,000			200,000			200,000			200,000			150,000
Secured Borrowing Capacity with Correspondent Lender			26,250			26,250			26,250			26,250			26,250
Total Secondary Liquidity		$	1,603,428		$	1,693,294		$	1,679,061		$	1,704,434		$	1,714,879
Total Primary and Secondary Liquidity		$	2,289,868		$	2,222,493		$	2,248,648		$	2,234,405		$	2,181,295
Ratio of Primary and Secondary Liquidity to Total Deposits			61.1	%		58.4	%		59.1	%		60.2	%		59.3	%

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 0.10% for the third quarter of 2024, compared to 0.00% for the second quarter of 2024, and 0.01% for the third quarter of 2023. The increase in net charge-offs was primarily due to one central business district office loan.
●	At September 30, 2024, the Company’s nonperforming assets, which include nonaccrual loans, loans past due 90 days and still accruing, and foreclosed assets, were $8.8 million, or 0.19% of total assets, compared to $678,000, or 0.01%, of total assets at June 30, 2024, and $749,000, or 0.02%, of total assets at September 30, 2023. The increase in nonperforming assets was primarily due to one central business district office loan that previously had a substandard risk rating.
---	---
●	Loans with potential weaknesses that warranted a watchlist risk rating at September 30, 2024 totaled $32.0 million, compared to $30.4 million at June 30, 2024, and $26.9 million at September 30, 2023.
---	---
●	Loans that warranted a substandard risk rating at September 30, 2024 totaled $31.6 million, compared to $33.9 million at June 30, 2024, and $35.6 million at September 30, 2023.
---	---

Capital

Total shareholders’ equity at September 30, 2024 was $452.2 million, an increase of $13.0 million, or 3.0%, compared to total shareholders’ equity of $439.2 million at June 30, 2024, and an increase of $36.2 million, or 8.7%, over total shareholders’ equity of $416.0 million at September 30, 2023.

●	The linked-quarter increase was primarily 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 and preferred stock dividends.
●	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 9.79% at September 30, 2024, compared to 9.41% at June 30, 2024, and 9.07% at September 30, 2023.
---	---
●	Tangible common equity as a percentage of tangible assets, a non-GAAP financial measure, was 8.17% at September 30, 2024, compared to 7.90% at June 30, 2024, and 7.61% at September 30, 2023.
---	---

Tangible book value per share, a non-GAAP financial measure, was $13.96 as of September 30, 2024, an increase of 12.8% annualized from $13.53 as of June 30, 2024, and an increase of 12.8% from $12.37 as of September 30, 2023.

●	The Company has increased tangible book value per share each of the past 31 quarters.

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

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

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 December 2, 2024 to shareholders of record of the Series A Preferred Stock at the close of business on November 15, 2024.

Conference Call and Webcast

The Company will host a conference call to discuss its third quarter 2024 financial results on Thursday, October 24, 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 1933700. The replay will be available through October 31, 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 September 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 changes in 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 the level and impact of inflation and possible recession; the effects of developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in 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, including those who have balances above current FDIC insurance limits; our ability to successfully manage liquidity risk, which may increase our dependence on non-core funding sources such as brokered deposits, and negatively impact our cost of funds; our ability to raise additional capital to implement our business plan; our ability to implement our growth strategy and manage costs effectively; the composition of our senior leadership team and our ability to attract and retain key personnel; talent and labor shortages and employee turnover; the occurrence of fraudulent activity, breaches or

Page 7 of 17

failures of our or our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; 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 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 conflict in the Middle East and the Russian invasion of Ukraine; potential impairment to the goodwill the Company recorded in connection with acquisitions; risks associated with our ongoing acquisition of First Minnetonka City Bank, including the possibility that the merger may be more difficult or expensive to accomplish than anticipated, diversion of management's attention from daily operations and the effect of the proposed merger on the Company’s customer and employee relationships and operating results; 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
		September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands)	****	2024		****	2024		****	2024		****	2023		****	2023		****
			(Unaudited)			(Unaudited)			(Unaudited)						(Unaudited)
Income Statement
Net Interest Income		$	25,599		$	24,996		$	24,631		$	25,314		$	25,421
Provision for (Recovery of) Credit Losses			—			600			750			(250)			(600)
Noninterest Income			1,522			1,763			1,550			1,409			1,726
Noninterest Expense			15,760			15,539			15,189			15,740			15,237
Net Income			8,675			8,115			7,831			8,873			9,629
Net Income Available to Common Shareholders			7,662			7,101			6,818			7,859			8,616

Per Common Share Data
Basic Earnings Per Share		$	0.28		$	0.26		$	0.25		$	0.28		$	0.31
Diluted Earnings Per Share			0.27			0.26			0.24			0.28			0.30
Book Value Per Share			14.06			13.63			13.30			12.94			12.47
Tangible Book Value Per Share ^(1)^			13.96			13.53			13.20			12.84			12.37
Basic Weighted Average Shares Outstanding			27,382,798			27,386,713			27,691,401			27,870,430			27,943,409
Diluted Weighted Average Shares Outstanding			27,904,910			27,748,184			28,089,805			28,238,056			28,311,778
Shares Outstanding at Period End			27,425,690			27,348,049			27,589,827			27,748,965			28,015,505

Financial Ratios
Return on Average Assets ^(2)^			0.73	%		0.70	%		0.69	%		0.77	%		0.85	%
Pre-Provision Net Revenue Return on Average Assets ^(1)(2)^			0.96			0.94			0.95			0.96			1.01
Return on Average Shareholders' Equity ^(2)^			7.79			7.49			7.35			8.43			9.23
Return on Average Tangible Common Equity ^(1)(2)^			8.16			7.80			7.64			8.95			9.92
Net Interest Margin^(3)^			2.24			2.24			2.24			2.27			2.32
Core Net Interest Margin ^(1)(3)^			2.16			2.17			2.18			2.21			2.24
Cost of Total Deposits			3.58			3.46			3.32			3.19			2.99
Cost of Funds			3.54			3.49			3.34			3.23			3.10
Efficiency Ratio^(1)^			58.0			58.7			58.2			58.8			56.1
Noninterest Expense to Average Assets ^(2)^			1.33			1.35			1.33			1.37			1.34

Balance Sheet
Total Assets		$	4,691,517		$	4,687,035		$	4,723,109		$	4,611,990		$	4,557,070
Total Loans, Gross			3,685,590			3,800,385			3,784,205			3,724,282			3,722,271
Deposits			3,747,442			3,807,712			3,807,225			3,709,948			3,675,509
Total Shareholders' Equity			452,200			439,241			433,611			425,515			415,960
Loan to Deposit Ratio			98.3	%		99.8	%		99.4	%		100.4	%		101.3	%
Core Deposits to Total Deposits ^(4)^			71.5			67.9			69.3			68.7			70.3
Uninsured Deposits to Total Deposits			25.0			22.5			26.0			24.3			22.2

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

Capital Ratios (Consolidated) ^(6)^
Tier 1 Leverage Ratio			9.75	%		9.66	%		9.66	%		9.57	%		9.62	%
Common Equity Tier 1 Risk-based Capital Ratio			9.79			9.41			9.21			9.16			9.07
Tier 1 Risk-based Capital Ratio			11.44			11.03			10.83			10.79			10.69
Total Risk-based Capital Ratio			14.62			14.16			14.00			13.97			13.88
Tangible Common Equity to Tangible Assets ^(1)^			8.17			7.90			7.72			7.73			7.61

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

Page 9 of 17

(3)	Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of 21%.
(4)	Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000.
---	---
(5)	Nonperforming assets are defined as nonaccrual loans plus 90 days past due and still accruing plus foreclosed assets.
---	---
(6)	Preliminary data. Current period subject to change prior to filings with applicable regulatory agencies.
---	---

Page 10 of 17

Bridgewater Bancshares, Inc. and Subsidiaries

Consolidated Balance Sheets

(dollars in thousands, except share data)


	September 30,			June 30,			March 31,			December 31,			September 30,
	2024		****	2024		****	2024		****	2023		****	2023
	(Unaudited)			(Unaudited)			(Unaudited)						(Unaudited)
Assets
Cash and Cash Equivalents	$	191,859		$	134,093		$	143,355		$	128,562		$	124,358
Bank-Owned Certificates of Deposit		—			—			—			—			1,225
Securities Available for Sale, at Fair Value		664,715			601,057			633,282			604,104			553,076
Loans, Net of Allowance for Credit Losses		3,628,867			3,742,222			3,726,502			3,667,215			3,664,464
Federal Home Loan Bank (FHLB) Stock, at Cost		18,626			15,844			17,195			17,097			17,056
Premises and Equipment, Net		47,777			47,902			48,299			48,886			49,331
Foreclosed Assets		434			—			20			—			—
Accrued Interest		16,750			16,944			16,696			16,697			15,182
Goodwill		2,626			2,626			2,626			2,626			2,626
Other Intangible Assets, Net		163			171			180			188			197
Bank-Owned Life Insurance		38,219			35,090			34,778			34,477			34,209
Other Assets		81,481			91,086			100,176			92,138			95,346
Total Assets	$	4,691,517		$	4,687,035		$	4,723,109		$	4,611,990		$	4,557,070

Liabilities and Equity
Liabilities
Deposits:
Noninterest Bearing	$	713,309		$	705,175		$	698,432		$	756,964		$	754,297
Interest Bearing		3,034,133			3,102,537			3,108,793			2,952,984			2,921,212
Total Deposits		3,747,442			3,807,712			3,807,225			3,709,948			3,675,509
Notes Payable		13,750			13,750			13,750			13,750			13,750
FHLB Advances		349,500			287,000			317,000			319,500			294,500
Subordinated Debentures, Net of Issuance Costs		79,574			79,479			79,383			79,288			79,192
Accrued Interest Payable		3,458			3,999			4,405			5,282			3,816
Other Liabilities		45,593			55,854			67,735			58,707			74,343
Total Liabilities		4,239,317			4,247,794			4,289,498			4,186,475			4,141,110

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 September 30, 2024 (unaudited), June 30, 2024 (unaudited), March 31, 2024 (unaudited), December 31, 2023, and September 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 27,425,690 at September 30, 2024 (unaudited), 27,348,049 at June 30, 2024 (unaudited), 27,589,827 at March 31, 2024 (unaudited), 27,748,965 at December 31, 2023 and 28,015,505 at September 30, 2023 (unaudited)		274			273			276			277			280
Additional Paid-In Capital		94,597			93,205			95,069			96,320			100,120
Retained Earnings		302,231			294,569			287,468			280,650			272,812
Accumulated Other Comprehensive Loss		(11,416)			(15,320)			(15,716)			(18,246)			(23,766)
Total Shareholders' Equity		452,200			439,241			433,611			425,515			415,960
Total Liabilities and Equity	$	4,691,517		$	4,687,035		$	4,723,109		$	4,611,990		$	4,557,070

Page 11 of 17

Bridgewater Bancshares, Inc. and Subsidiaries Consolidated Statements of Income

(dollars in thousands, except per share data)

(Unaudited)


	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(dollars in thousands)	2024		****	2024		****	2024		****	2023		****	2023		****	2024		****	2023
Interest Income
Loans, Including Fees	$	51,895		$	51,385		$	49,581		$	49,727		$	48,999		$	152,861		$	141,675
Investment Securities		8,725			8,177			7,916			7,283			6,507			24,818			18,962
Other		2,407			1,316			1,172			1,543			1,303			4,895			3,165
Total Interest Income		63,027			60,878			58,669			58,553			56,809			182,574			163,802


Interest Expense
Deposits		34,187			31,618			30,190			29,448			27,225			95,995			66,597
Federal Funds Purchased		2			853			304			268			548			1,159			8,253
Notes Payable		296			296			295			299			296			887			844
FHLB Advances		1,942			2,125			2,258			2,220			2,316			6,325			5,269
Subordinated Debentures		1,001			990			991			1,004			1,003			2,982			2,979
Total Interest Expense		37,428			35,882			34,038			33,239			31,388			107,348			83,942

Net Interest Income		25,599			24,996			24,631			25,314			25,421			75,226			79,860
Provision for (Recovery of) Credit Losses		—			600			750			(250)			(600)			1,350			75

Net Interest Income After Provision for Credit Losses		25,599			24,396			23,881			25,564			26,021			73,876			79,785

Noninterest Income
Customer Service Fees		373			366			342			359			379			1,081			1,096
Net Gain (Loss) on Sales of Securities		(28)			320			93			(27)			—			385			(6)
Letter of Credit Fees		424			387			316			418			315			1,127			1,328
Debit Card Interchange Fees		152			155			141			152			150			448			443
Bank-Owned Life Insurance		352			312			301			268			252			965			724
FHLB Prepayment Income		—			—			—			—			493			—			792
Other Income		249			223			357			239			137			829			707
Total Noninterest Income		1,522			1,763			1,550			1,409			1,726			4,835			5,084

Noninterest Expense
Salaries and Employee Benefits		9,851			9,675			9,433			9,615			9,519			28,959			26,923
Occupancy and Equipment		1,069			1,092			1,057			1,062			1,101			3,218			3,385
FDIC Insurance Assessment		750			725			875			1,050			1,075			2,350			2,640
Data Processing		368			472			412			424			392			1,252			1,150
Professional and Consulting Fees		1,149			852			889			782			715			2,890			2,299
Derivative Collateral Fees		381			528			486			573			543			1,395			1,327
Information Technology and Telecommunications		840			812			796			812			683			2,448			2,077
Marketing and Advertising		367			317			322			324			222			1,006			805
Intangible Asset Amortization		9			8			9			9			9			26			91
Other Expense		976			1,058			910			1,089			978			2,944			2,883
Total Noninterest Expense		15,760			15,539			15,189			15,740			15,237			46,488			43,580

Income Before Income Taxes		11,361			10,620			10,242			11,233			12,510			32,223			41,289
Provision for Income Taxes		2,686			2,505			2,411			2,360			2,881			7,602			10,202
Net Income		8,675			8,115			7,831			8,873			9,629			24,621			31,087
Preferred Stock Dividends		(1,013)			(1,014)			(1,013)			(1,014)			(1,013)			(3,040)			(3,040)
Net Income Available to Common Shareholders	$	7,662		$	7,101		$	6,818		$	7,859		$	8,616		$	21,581		$	28,047

Earnings Per Share
Basic	$	0.28		$	0.26		$	0.25		$	0.28		$	0.31		$	0.79		$	1.01
Diluted		0.27			0.26			0.24			0.28			0.30			0.77			0.99

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																							****
		September 30, 2024								June 30, 2024							****	September 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		$	157,114		$	1,971		4.99	%	$	81,672		$	922		4.54	%	$	81,038		$	903		4.42	%
Investment Securities:
Taxable Investment Securities			668,429			8,406		5.00			641,469			7,861		4.93			565,008			6,234		4.38
Tax-Exempt Investment Securities^(1)^			31,496			402		5.08			31,550			401		5.11			29,955			346		4.58
Total Investment Securities			699,925			8,808		5.01			673,019			8,262		4.94			594,963			6,580		4.39
Loans ^(1)(2)^			3,721,654			52,118		5.57			3,771,768			51,592		5.50			3,722,594			49,326		5.26
Federal Home Loan Bank Stock			16,828			436		10.31			19,461			394		8.15			17,829			400		8.89
Total Interest Earning Assets			4,595,521			63,333		5.48	%		4,545,920			61,170		5.41	%		4,416,424			57,209		5.14	%
Noninterest Earning Assets			108,283								100,597								88,513
Total Assets		$	4,703,804							$	4,646,517							$	4,504,937
Interest Bearing Liabilities:
Deposits:
Interest Bearing Transaction Deposits		$	804,161		$	9,369		4.63	%	$	732,923		$	8,270		4.54	%	$	730,244		$	7,136		3.88	%
Savings and Money Market Deposits			939,665			10,262		4.34			914,397			9,459		4.16			874,612			8,089		3.67
Time Deposits			355,050			3,918		4.39			360,691			3,850		4.30			266,635			1,962		2.92
Brokered Deposits			989,712			10,638		4.28			976,467			10,039		4.13			985,276			10,038		4.04
Total Interest Bearing Deposits			3,088,588			34,187		4.40			2,984,478			31,618		4.26			2,856,767			27,225		3.78
Federal Funds Purchased			141			2		5.72			61,151			853		5.61			39,641			548		5.48
Notes Payable			13,750			296		8.58			13,750			296		8.64			13,750			296		8.58
FHLB Advances			309,120			1,942		2.50			306,396			2,125		2.79			275,261			2,316		3.34
Subordinated Debentures			79,519			1,001		5.01			79,424			990		5.02			79,137			1,003		5.03
Total Interest Bearing Liabilities			3,491,118			37,428		4.27	%		3,445,199			35,882		4.19	%		3,264,556			31,388		3.81	%
Noninterest Bearing Liabilities:
Noninterest Bearing Transaction Deposits			710,192								691,891								754,567
Other Noninterest Bearing Liabilities			59,417								73,842								71,767
Total Noninterest Bearing Liabilities			769,609								765,733								826,334
Shareholders' Equity			443,077								435,585								414,047
Total Liabilities and Shareholders' Equity		$	4,703,804							$	4,646,517							$	4,504,937
Net Interest Income / Interest Rate Spread						25,905		1.21	%					25,288		1.22	%					25,821		1.33	%
Net Interest Margin ^(3)^								2.24	%							2.24	%							2.32	%
Taxable Equivalent Adjustment:
Tax-Exempt Investment Securities and Loans						(306)								(292)								(400)
Net Interest Income					$	25,599							$	24,996							$	25,421

(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 Nine Months Ended															****
		September 30, 2024								September 30, 2023							****
		Average			Interest			Yield/		Average			Interest			Yield/
(dollars in thousands)	****	Balance		****	& Fees		****	Rate	****	Balance		****	& Fees		****	Rate	****
Interest Earning Assets:
Cash Investments		$	104,831		$	3,722		4.74	%	$	68,150		$	1,937		3.80	%
Investment Securities:
Taxable Investment Securities			649,538			23,867		4.91			569,097			18,192		4.27
Tax-Exempt Investment Securities^(1)^			31,597			1,203		5.09			28,947			975		4.50
Total Investment Securities			681,135			25,070		4.92			598,044			19,167		4.29
Loans ^(1)(2)^			3,740,855			153,568		5.48			3,690,196			142,659		5.17
Federal Home Loan Bank Stock			18,111			1,173		8.65			22,343			1,228		7.34
Total Interest Earning Assets			4,544,932			183,533		5.39	%		4,378,733			164,991		5.04	%
Noninterest Earning Assets			102,993								86,243
Total Assets		$	4,647,925							$	4,464,976
Interest Bearing Liabilities:
Deposits:
Interest Bearing Transaction Deposits		$	757,409		$	25,332		4.47	%	$	625,531		$	15,833		3.38	%
Savings and Money Market Deposits			917,051			28,502		4.15			926,494			21,636		3.12
Time Deposits			344,484			10,935		4.24			261,474			4,734		2.42
Brokered Deposits			993,445			31,226		4.20			876,130			24,394		3.72
Total Interest Bearing Deposits			3,012,389			95,995		4.26			2,689,629			66,597		3.31
Federal Funds Purchased			27,605			1,159		5.61			220,434			8,253		5.01
Notes Payable			13,750			887		8.62			13,750			844		8.21
FHLB Advances			311,380			6,325		2.71			215,938			5,269		3.26
Subordinated Debentures			79,424			2,982		5.02			79,042			2,979		5.04
Total Interest Bearing Liabilities			3,444,548			107,348		4.16	%		3,218,793			83,942		3.49	%
Noninterest Bearing Liabilities:
Noninterest Bearing Transaction Deposits			700,308								774,523
Other Noninterest Bearing Liabilities			67,405								63,646
Total Noninterest Bearing Liabilities			767,713								838,169
Shareholders' Equity			435,664								408,014
Total Liabilities and Shareholders' Equity		$	4,647,925							$	4,464,976
Net Interest Income / Interest Rate Spread						76,185		1.23	%					81,049		1.55	%
Net Interest Margin ^(3)^								2.24	%							2.47	%
Taxable Equivalent Adjustment:
Tax-Exempt Investment Securities and Loans						(959)								(1,189)
Net Interest Income					$	75,226							$	79,860

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 Nine Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(dollars in thousands)	****	2024		****	2024		****	2024		****	2023		****	2023		****	2024		****	2023
Allowance for Credit Losses
Balance at Beginning of Period		$	51,949		$	51,347		$	50,494		$	50,585		$	50,701		$	50,494		$	47,996
Impact of Adopting CECL			—			—			—			—			—			—			650
Provision for Credit Losses			—			600			850			—			—			1,450			2,050
Charge-offs			(937)			(10)			(2)			(95)			(122)			(949)			(129)
Recoveries			6			12			5			4			6			23			18
Net Charge-offs		$	(931)		$	2		$	3		$	(91)		$	(116)		$	(926)		$	(111)
Balance at End of Period			51,018			51,949			51,347			50,494			50,585			51,018			50,585
Allowance for Credit Losses to Total Loans			1.38	%		1.37	%		1.36	%		1.36	%		1.36	%		1.38	%		1.36	%

		As of and for the Three Months Ended															As of and for the Nine Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(dollars in thousands)	****	2024		****	2024		****	2024		****	2023		****	2023		****	2024		****	2023
Provision for Credit Losses on Loans		$	—		$	600		$	850		$	—		$	—		$	1,450		$	2,050
Recovery of Credit Losses for Off-Balance Sheet Credit Exposures			—			—			(100)			(250)			(600)			(100)			(1,975)
Provision for (Recovery of) Credit Losses		$	—		$	600		$	750		$	(250)		$	(600)		$	1,350		$	75


	As of and for the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands)	2024		****	2024		****	2024		****	2023		****	2023
Selected Asset Quality Data
Loans 30-89 Days Past Due	$	65		$	502		$	—		$	15,110		$	11
Loans 30-89 Days Past Due to Total Loans		0.00	%		0.01	%		0.00	%		0.41	%		0.00	%
Nonperforming Loans	$	8,378		$	678		$	249		$	919		$	749
Nonperforming Loans to Total Loans		0.23	%		0.02	%		0.01	%		0.02	%		0.02	%
Nonaccrual Loans to Total Loans		0.23			0.02			0.01			0.02			0.02
Nonaccrual Loans and Loans Past Due 90 Days and Still Accruing to Total Loans		0.23			0.02			0.01			0.02			0.02
Foreclosed Assets	$	434		$	—		$	20		$	—		$	—
Nonperforming Assets ^(1)^		8,812			678			269			919			749
Nonperforming Assets to Total Assets ^(1)^		0.19	%		0.01	%		0.01	%		0.02	%		0.02	%
Net Loan Charge-Offs (Annualized) to Average Loans		0.10			0.00			0.00			0.01			0.01
Watchlist Risk Rating Loans	$	31,991		$	30,436		$	21,624		$	26,485		$	26,877
Substandard Risk Rating Loans		31,637			33,908			33,829			35,858			35,621

(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 Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(dollars in thousands)	2024		****	2024		****	2024		****	2023			2023			2024		****	2023		****

Pre-Provision Net Revenue
Noninterest Income	$	1,522		$	1,763		$	1,550		$	1,409		$	1,726		$	4,835		$	5,084
Less: (Gain) Loss on Sales of Securities		28			(320)			(93)			27			—			(385)			6
Less: FHLB Advance Prepayment Income		—			—			—			—			(493)			—			(792)
Total Operating Noninterest Income		1,550			1,443			1,457			1,436			1,233			4,450			4,298
Plus: Net Interest Income		25,599			24,996			24,631			25,314			25,421			75,226			79,860
Net Operating Revenue	$	27,149		$	26,439		$	26,088		$	26,750		$	26,654		$	79,676		$	84,158

Noninterest Expense	$	15,760		$	15,539		$	15,189		$	15,740		$	15,237		$	46,488		$	43,580
Total Operating Noninterest Expense	$	15,760		$	15,539		$	15,189		$	15,740		$	15,237		$	46,488		$	43,580

Pre-Provision Net Revenue	$	11,389		$	10,900		$	10,899		$	11,010		$	11,417		$	33,188		$	40,578

Plus:
Non-Operating Revenue Adjustments		(28)			320			93			(27)			493			385			786
Less:
Provision (Recovery of) for Credit Losses		—			600			750			(250)			(600)			1,350			75
Provision for Income Taxes		2,686			2,505			2,411			2,360			2,881			7,602			10,202
Net Income	$	8,675		$	8,115		$	7,831		$	8,873		$	9,629		$	24,621		$	31,087

Average Assets	$	4,703,804		$	4,646,517		$	4,592,838		$	4,567,446		$	4,504,937		$	4,647,925		$	4,464,976
Pre-Provision Net Revenue Return on Average Assets		0.96	%		0.94	%		0.95	%		0.96	%		1.01	%		0.95	%		1.22	%

Core Net Interest Margin
Net Interest Income (Tax-equivalent Basis)	$	25,905		$	25,288		$	24,992		$	25,683		$	25,822		$	76,185		$	81,049
Less: Loan Fees		(968)			(767)			(608)			(751)			(914)			(2,342)			(2,853)
Core Net Interest Income	$	24,937		$	24,521		$	24,384		$	24,932		$	24,908		$	73,843		$	78,196

Average Interest Earning Assets	$	4,595,521		$	4,545,920		$	4,492,756		$	4,480,428		$	4,416,424		$	4,544,932		$	4,378,733
Core Net Interest Margin		2.16	%		2.17	%		2.18	%		2.21	%		2.24	%		2.17	%		2.39	%

Efficiency Ratio
Noninterest Expense	$	15,760		$	15,539		$	15,189		$	15,740		$	15,237		$	46,488		$	43,580
Less: Amortization of Intangible Assets		(9)			(8)			(9)			(9)			(9)			(26)			(91)
Adjusted Noninterest Expense	$	15,751		$	15,531		$	15,180		$	15,731		$	15,228		$	46,462		$	43,489

Net Interest Income	$	25,599		$	24,996		$	24,631		$	25,314		$	25,421		$	75,226		$	79,860
Noninterest Income		1,522			1,763			1,550			1,409			1,726			4,835			5,084
Less: Gain (Loss) on Sales of Securities		28			(320)			(93)			27			—			(385)			6
Adjusted Operating Revenue	$	27,149		$	26,439		$	26,088		$	26,750		$	27,147		$	79,676		$	84,950
Efficiency Ratio		58.0	%		58.7	%		58.2	%		58.8	%		56.1	%		58.3	%		51.2	%

Page 16 of 17

Bridgewater Bancshares, Inc. and Subsidiaries

Non-GAAP Financial Measures

(dollars in thousands)

(unaudited)


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

Tangible Common Equity and Tangible Common Equity/Tangible Assets
Total Shareholders' Equity	$	452,200		$	439,241		$	433,611		$	425,515		$	415,960
Less: Preferred Stock		(66,514)			(66,514)			(66,514)			(66,514)			(66,514)
Total Common Shareholders' Equity		385,686			372,727			367,097			359,001			349,446
Less: Intangible Assets		(2,789)			(2,797)			(2,806)			(2,814)			(2,823)
Tangible Common Equity	$	382,897		$	369,930		$	364,291		$	356,187		$	346,623

Total Assets	$	4,691,517		$	4,687,035		$	4,723,109		$	4,611,990		$	4,557,070
Less: Intangible Assets		(2,789)			(2,797)			(2,806)			(2,814)			(2,823)
Tangible Assets	$	4,688,728		$	4,684,238		$	4,720,303		$	4,609,176		$	4,554,247
Tangible Common Equity/Tangible Assets		8.17	%		7.90	%		7.72	%		7.73	%		7.61	%

Tangible Book Value Per Share
Book Value Per Common Share	$	14.06		$	13.63		$	13.30		$	12.94		$	12.47
Less: Effects of Intangible Assets		(0.10)			(0.10)			(0.10)			(0.10)			(0.10)
Tangible Book Value Per Common Share	$	13.96		$	13.53		$	13.20		$	12.84		$	12.37

Return on Average Tangible Common Equity
Net Income Available to Common Shareholders	$	7,662		$	7,101		$	6,818		$	7,859		$	8,616		$	21,581		$	28,047

Average Shareholders' Equity	$	443,077		$	435,585		$	428,248		$	417,789		$	414,047		$	435,664		$	408,014
Less: Average Preferred Stock		(66,514)			(66,514)			(66,514)			(66,514)			(66,514)			(66,514)			(66,514)
Average Common Equity		376,563			369,071			361,734			351,275			347,533			369,150			341,500
Less: Effects of Average Intangible Assets		(2,794)			(2,802)			(2,811)			(2,819)			(2,828)			(2,802)			(2,856)
Average Tangible Common Equity	$	373,769		$	366,269		$	358,923		$	348,456		$	344,705		$	366,348		$	338,644
Return on Average Tangible Common Equity		8.16	%		7.80	%		7.64	%		8.95	%		9.92	%		7.87	%		11.07	%

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 changes in 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<br>financial services industry, nationally and within our market area, including the level and impact of inflation and possible recession; the effects of recent 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;<br>our 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, including those<br>who have balances above current Federal Deposit Insurance Corporation (“FDIC”) insurance limits; our ability to successfully manage liquidity risk, which may increase our dependence on non-core funding sources such as brokered<br>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<br>leadership team and our ability to attract and retain key personnel; talent and labor shortages and employee turnover; the occurrence of fraudulent activity, breaches or failures of our or our third-party vendors’ information security<br>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<br>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<br>litigation and other legal proceedings and regulatory actions against us; the impact of recent and future legislative and regulatory changes, including in response to recent bank failures; risks related to climate change and the negative<br>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<br>pandemics, acts of war or terrorism or other adverse external events, including the ongoing conflict in the Middle East and the Russian invasion of Ukraine; potential impairment to the goodwill the Company recorded in connection with<br>risks associated with our ongoing acquisition of First Minnetonka City Bank, including the possibility that the merger may be more difficult or expensive to accomplish than anticipated, diversion of management’s attention from daily<br>operations and the effect of the proposed merger on the Company’s customer and employee relationships and operating results; changes to U.S. or state tax laws, regulations and guidance; potential changes in federal policy and at<br>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 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
0.19%<br>3Q24 Earnings Highlights<br>3<br>• Core deposit2 balances increased $94M from 2Q24, or 14.4% annualized<br>• Deposit balances decreased $60M from 2Q24, or 6.4% annualized, due to a $158M decline in brokered and time deposits<br>• YTD annualized deposit growth of 1.3% and core deposit2 growth of 6.9%<br>• Loan-to-deposit ratio of 98.3%, down from 99.8% at 2Q24<br>• Net interest income increased $603K, or 2.4%, from 2Q24<br>• Net interest margin (NIM) of 2.24% for the third consecutive quarter<br>• Average interest earning asset growth of $50M, or 4.3% annualized<br>• Balance sheet well-positioned for rate cuts and a normalizing yield curve<br>• Annualized net charge-offs to average loans of 0.10% vs. 0.00% in 2Q24; annualized YTD net charge-offs of 0.03%<br>• Nonperforming assets to total assets of 0.19% vs. 0.01% in 2Q24<br>• Increase in net charge-offs and nonperforming assets due to one central business district (CBD) office loan<br>• Well-reserved with allowance to total loans of 1.38%<br>NIM Stability and<br>Net Interest Income<br>Growth<br>Superb<br>Asset Quality<br>Profile<br>$0.27<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>0.73% 8.16% 58.0%<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>• 100% cash transaction resulting in Bridgewater becoming a $5 billion bank in the Twin Cities<br>• Low-risk deal that improves the deposit mix, provides balance sheet optionality, and improves loan diversification<br>• Received regulatory approvals in October; anticipate closing in 4Q24<br>Announced Agreement<br>to Acquire First<br>Minnetonka City Bank<br>(FMCB)<br>Strong Core Deposit<br>Growth and Improved<br>Deposit Mix
---
Strategic Benefits of the Proposed<br>Acquisition of First Minnetonka City Bank<br>4<br>1 Source: S&P Capital IQ (data as of June 30, 2024)<br>2 As of June 30, 2024<br>Adds High Quality Bank<br>With Complementary<br>Strengths<br>• Reduces CRE concentration by adding a well-diversified loan portfolio focused on 1-4 family and leases<br>• Diversifies the revenue mix by adding incremental fee income via an investment advisory platform<br>• Fills in pure-play Twin Cities branch footprint by adding two Minnetonka branch locations<br>• Pro forma deposit market share ranks #9 in the Twin Cities1<br>Enhances Deposit Base<br>and Liquidity Profile<br>• Improves the deposit mix by adding a low-cost, granular core deposit base<br>• Enhances the liquidity profile by adding a balance sheet with a loan-to-deposit ratio of 61%2<br>• Creates balance sheet optionality to put liquidity to work and/or pay down higher cost debt<br>Low Risk<br>Transaction<br>• Small, in-market acquisition of an established franchise with a 60-year history and strong cultural fit<br>• Leverages the recent scaling of our Enterprise Risk Management function<br>• Streamlined integration as both banks run on the same core banking platform<br>• Comprehensive due diligence and loan review processes<br>Financially<br>Compelling<br>• Estimated EPS accretion of 15% in 2025 with a tangible book value earnback period < 3 years<br>• Incremental operational efficiencies with expected cost savings of 30% in 2025 and 50% in 2026<br>• Estimated internal rate of return of 24%
---
Consistent Tangible Book Value Per Share<br>Outperformance<br>5<br>208%<br>69%<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>3Q24<br>BWB Peer Bank Average2<br>Tangible Book Value Per Share1 Growth for 31 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 June 30, 2024 with growth rate through 2Q24 (Source: S&P Capital IQ)
---
Stable NIM Supports<br>Net Interest Income Growth<br>6<br>$24,507 $24,563 $24,023 $24,229 $24,631<br>$914 $751 $608 $767 $968<br>$25,421 $25,314 $24,631 $24,996 $25,599<br>2.32%<br>2.27%<br>2.24% 2.24% 2.24%<br>3Q23 4Q23 1Q24 2Q24 3Q24<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>3Q24 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 driven by stable NIM and average earning<br>asset growth<br>• Higher loan fees as loan payoffs increased<br>Net Interest Margin<br>• NIM remained stable as the Fed cut interest rates late in 3Q24<br>• Well-positioned for rate cuts and a more normalized yield curve<br>• $1.4 billion of adjustable funding tied to short-term rates<br>• Loan portfolio positioned to continue repricing higher in a<br>rates-down environment
---
Higher Asset Yields Drive NIM Stabilization<br>7<br>$2,857 $2,909 $2,961 $2,984 $3,089<br>$755 $753 $701 $692 $710 $408 $415 $434 $461 $403<br>$4,020 $4,077 $4,096 $4,137 $4,202<br>3.10% 3.23% 3.34% 3.49% 3.54%<br>3Q23 4Q23 1Q24 2Q24 3Q24<br>$3,723 $3,726 $3,729 $3,772 $3,722<br>5.26% 5.33% 5.38% 5.50% 5.57%<br>5.16% 5.25% 5.31% 5.42% 5.47%<br>3Q23 4Q23 1Q24 2Q24 3Q24<br>$3,611 $3,662 $3,662 $3,676 $3,799<br>2.99% 3.19% 3.32% 3.46% 3.58%<br>3Q23 4Q23 1Q24 2Q24 3Q24<br>Loan Yield (ex. Loan Fees)2<br>Loans Continued to Reprice Higher Growth of High-Yielding Securities Portfolio<br>Deposit Costs Continued to Rise Rising Funding Costs Slowed as Borrowings Declined<br>$595<br>$630<br>$670 $673<br>$700<br>4.39% 4.63% 4.80% 4.94% 5.01%<br>3Q23 4Q23 1Q24 2Q24 3Q24<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
---
Revenue Growth Drives Rising Profitability<br>8<br>PPNR ROA1<br>Pre-Provision Net Revenue (PPNR) Growth Revenue Growth Due to a Stable NIM<br>$32,530 $34,095 $32,893<br>$28,567<br>$25,872 $25,421 $25,314 $24,631 $24,996 $25,599<br>$1,650<br>$1,387<br>$1,738<br>$1,943<br>$1,415 $1,726 $1,409 $1,550 $1,763 $1,522<br>$34,180<br>$35,482 $34,631<br>$30,510<br>$27,287 $27,147 $26,723 $26,181 $26,759 $27,121<br>2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24<br>$11,417 $11,010 $10,899 $10,900 $11,389<br>$9,629<br>$8,873<br>$7,831 $8,115<br>$8,675<br>1.01%<br>0.96% 0.95% 0.94% 0.96%<br>0.85%<br>0.77%<br>0.69% 0.70%<br>0.73%<br>3Q23 4Q23 1Q24 2Q24 3Q24<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
---
$9,519 $9,615 $9,433 $9,675 $9,851<br>$1,101 $1,062 $1,057 $1,092 $1,069<br>$1,075 $1,236 $1,208 $1,284 $1,208<br>$715 $782 $889 $852 $1,149<br>$2,827 $3,045 $2,602 $2,636 $2,483<br>$15,237 $15,740 $15,189 $15,539 $15,760<br>3Q23 4Q23 1Q24 2Q24 3Q24<br>Well-Controlled Expenses<br>9<br>1.34% 1.37% 1.33% 1.35% 1.33%<br>56.1%<br>58.8% 58.2% 58.7% 58.0%<br>3Q23 4Q23 1Q24 2Q24 3Q24<br>NIE / Avg. Assets2 Efficiency Ratio3<br>Highly Efficient Business Model Well-Controlled Expenses YTD<br>Peer median efficiency ratio of 63%1 in 2Q24 Continuing to invest in people and technology<br>Salary and Employee Benefits Occupancy<br>Technology Professional and Consulting<br>1<br>Includes publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion as of June 30, 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
---
Strong Core Deposit Growth Drives<br>Positive Deposit Mix Shift<br>10<br>21% 20% 18% 18% 19%<br>21% 19% 21% 20% 22%<br>24% 25% 26% 25% 26%<br>7% 8% 9% 10% 9%<br>27% 28% 26% 27% 24%<br>$3,676 $3,710 $3,807 $3,808 $3,747<br>3Q23 4Q23 1Q24 2Q24 3Q24<br>Noninterest-Bearing Transaction Interest-Bearing Transaction<br>Savings & Money Market Time<br>Brokered<br>• YTD core deposit1 balances increased 6.9% annualized, up 14.4% in 3Q24<br>• YTD deposit balances increased 1.3% annualized<br>• Improved deposit mix in 3Q24:<br>• Noninterest bearing deposits $8M<br>• Brokered deposits $131M<br>• Time deposits $27M<br>• Core deposit growth not always linear due to nature of client base<br>Deposit Growth Outpacing 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 (3Q24)<br>Positive Core Deposit1 Growth Momentum<br>$2,470<br>$2,515<br>$2,585 $2,547<br>$2,637<br>$2,585<br>$2,678<br>1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24<br>Improving Deposit Mix<br>Immediately Adjustable Deposits $ 1,079<br>Derivatives Hedging 293<br> Total $ 1,372<br>Time Deposit Maturities (next 12 months) $ 337<br>Callable Brokered Deposits (over 4.50%) 132<br> Total $ 469<br>Funding Tied to Short-Term Rates<br>Other Repricing Opportunities
---
Loan Growth Impacted by Elevated Payoffs<br>11<br>$3,722 $3,724<br>$3,784 $3,800<br>$3,686<br>3Q23 4Q23 1Q24 2Q24 3Q24<br>Gross Loans<br>Dollars in millions<br>• 3Q24 loan balances decreased $114.8M<br>• YTD loan balances decreased $38.3M<br>• YTD loan payoffs increased 42% from 2023 YTD<br>• Strong loan pipeline build in 3Q24<br>• Loan-to-deposit ratio of 98.3%, down from 99.8% in 2Q24 and within<br>target range of 95% to 105%<br>Loan Demand Continued Despite Elevated Payoffs<br>• Loan demand – growing pipelines and strong demand, aided by recent<br>interest rate cut<br>• Market and economic conditions – focused on profitable growth and<br>strong asset quality as increased competition puts pressure on new loan<br>yields<br>• Pace of loan payoffs and paydowns – expect elevated payoff levels to<br>continue in the near-term<br>• Pace of core deposit growth – continue to align loan growth with core<br>deposit growth over time<br>Loan Growth Outlook Drivers
---
Elevated Payoffs More Than Offset<br>New Originations<br>12<br>New Originations Impacted by Competition and Interest Rates<br>$71 $71 $96 $91 $60<br>$87 $87 $67 $50<br>$46<br>$158 $158 $163<br>$141<br>$106<br>3Q23 4Q23 1Q24 2Q24 3Q24<br>New Originations Advances<br>Elevated Loan Payoffs Impacted Overall Growth<br>$106 $102<br>$58<br>$105<br>$163<br>$60 $45<br>$44<br>$45<br>$166 $54<br>$147<br>$102<br>$150<br>$217<br>3Q23 4Q23 1Q24 2Q24 3Q24<br>Payoffs Amortization/Paydowns<br>Dollars in millions<br>3Q24 Loan Growth Waterfall
---
11%<br>25% 25%<br>17% 14% 9%<br>$62<br>$146 $147<br>$99 $85<br>$51<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>14% 16% 13% 15% 20%<br>$558<br>$357 $398 $330 $379<br>$508<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>in a Rates-Down Environment<br>13<br>Fixed,<br>69%<br>Variable,<br>15%<br>Adjustable,<br>16%<br>Loan Portfolio Mix<br>Fixed-Rate Portfolio<br>($2.5B)<br>Variable-Rate Portfolio<br>($566M)<br>Adjustable-Rate Portfolio<br>($590M)<br>Years to Maturity<br>• Large fixed-rate portfolio<br>provides support to total loan<br>yields in a rates-down<br>environment<br>• $558M of fixed-rate loans<br>maturing over the next year, with<br>a weighted average yield of<br>5.48%<br>Variable-Rate Loan Floors<br>• Small variable-rate portfolio<br>limits immediate repricing<br>pressure in a rates-down<br>environment<br>• 81% of variable-rate portfolio has<br>rate floors, with 78% of the floors<br>being above 5%<br>• 96% 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>• $62M of adjustable-rate loans<br>repricing or maturing over the<br>next year, with a weighted<br>average yield of 4.99%<br>Dollars in millions<br>WA<br>Yield 5.48% 5.04% 4.49% 4.96% 5.28% 4.23%<br>WA<br>Yield 4.99% 3.85% 4.79% 4.40% 5.49% 4.58%<br>10% 12%<br>19%<br>49%<br>10%<br>$45 $55<br>$89<br>$224<br>$44<br>Below<br>4%<br>4%-5% 5%-6% 6%-7% Above<br>7%
---
Managing Multifamily and<br>Office-Related Risk<br>14 1<br>Includes formally subsidized properties (19%) and market rate properties with affordable set-asides (8%)<br>2 Excludes medical office of $99 million at September 30, 2024<br>Strong Multifamily Track Record in Stable Twin Cities Market Well-Managed CRE NOO Office Portfolio With Limited CBD Exposure2<br>Percent of Total<br>Loans Average Loan Size<br>5.4% $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>21%<br>Out-of-State<br>15%<br>$197M<br>• Majority of CRE NOO office<br>exposure in the Twin Cities<br>suburbs<br>• Only 4 loans totaling $30M<br>outside of Minnesota,<br>consisting of projects for<br>existing local clients<br>• Only 4 loans totaling $34M<br>located in CBDs, with one on<br>Watch and one moved to<br>Nonaccrual in 3Q24<br>• $935K charge-off on one<br>nonaccrual CBD office loan in<br>3Q24; property under<br>contract and expected to be<br>sold during 4Q24<br>Average<br>Loan Size<br>Weighted<br>Average LTV<br>NCOs<br>(since 2005)<br>$3.2M 67% $62K<br>Multifamily Lending Focus 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 27%1 of the multifamily portfolio<br>• Positive market trends with declining vacancy rates, strong absorption, and<br>reduced construction = favorable outlook for occupancy and rent growth<br>• Market catalysts include relative affordability, steady population growth,<br>low unemployment, strong 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>41%<br>Construction<br>3%<br>Product<br>Type<br>NPAs/<br>Loans<br>0.00%<br>Weighted Average<br>LTV<br>61%
---
1 Includes publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion as of June 30, 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>Asset Quality Remains Strong<br>15<br>$116 $91<br>$(3) $(2)<br>$931<br>0.01% 0.01%<br>0.00% 0.00%<br>0.10%<br>3Q23 4Q23 1Q24 2Q24 3Q24<br>Net Charge-Offs<br>3Q24 YTD annualized NCOs of 0.03%;<br>3Q24 NCOs related to one CBD office loan<br>Net Charge-offs (recoveries) % of Average Loans (annualized)<br>$50,585 $50,494<br>$51,347 $51,949<br>$51,018<br>1.36% 1.36% 1.36% 1.37% 1.38%<br>3Q23 4Q23 1Q24 2Q24 3Q24<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>$749 $919 $269 $678<br>$8,812<br>0.02% 0.02% 0.01% 0.01%<br>0.19%<br>3Q23 4Q23 1Q24 2Q24 3Q24<br>Nonperforming Assets2<br>One CBD office loan<br>moved to nonaccrual in 3Q24<br>NPAs % of Assets
---
Watch List and Substandard Loans<br>Remain at Low Levels<br>16<br>C&I<br>1.5%<br>Multifamily<br>40.3%<br>CRE NOO<br>Office<br>27.4%<br>CRE NOO<br>Retail<br>20.0%<br>CRE NOO<br>Industrial<br>2.9%<br>CRE OO<br>5.4%<br>1-4 Family<br>2.5%<br>$32<br>Million<br>Watch List Loans Substandard Loans<br>C&I<br>44.9%<br>CRE NOO<br>Office<br>26.3%<br>CRE NOO<br>Hotels<br>9.5%<br>CRE NOO<br>Retail<br>6.5%<br>CRE NOO<br>Other<br>7.6%<br>CRE OO<br>3.1%<br>C&D<br>0.2%<br>1-4<br>Family<br>1.9%<br>$32<br>Million<br>Watch List Characteristics<br>Loan Balances Outstanding $31,991<br>% of Total Loans, Gross 0.9%<br>Number of Loans 11<br>Average Loan Size $2,908<br>Substandard Characteristics<br>Loan Balances Outstanding $31,637<br>% of Total Loans, Gross 0.9%<br>Number of Loans 15<br>Average Loan Size $2,109<br>% of Bank Risk-Based Capital 5.51%<br>$26,877 $26,485<br>$21,624<br>$30,436 $31,991<br>3Q23 4Q23 1Q24 2Q24 3Q24<br>$35,621 $35,858 $33,829 $33,908 $31,637<br>3Q23 4Q23 1Q24 2Q24 3Q24<br>Dollars in thousands
---
Strong Capital Ratios<br>17<br>9.62% 9.57% 9.66% 9.66%<br>9.75%<br>9.07% 9.16% 9.21% 9.41%<br>9.79%<br>13.88% 13.97% 14.00% 14.16%<br>14.62%<br>7.61% 7.73% 7.72% 7.90% 8.17%<br>3Q23 4Q23 1Q24 2Q24 3Q24<br>Total Risk-Based Capital Ratio Common Equity Tier 1 Capital Ratio<br>Tier 1 Leverage Ratio<br>Building Capital Ratios<br>Tangible Common Equity Ratio1<br>1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>Recent Capital Actions<br>• No shares of common stock repurchased during 3Q24; $15.3 million<br>remaining under current share repurchase authorization<br>• Announced the acquisition of First Minnetonka City Bank on August 28,<br>2024; expected to close in 4Q24<br>Capital Allocation 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 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 M&A opportunities that complement BWB’s<br>business model<br>Have not historically paid a common stock dividend given loan<br>growth opportunities
---
Near-Term Expectations<br>18<br>• Relatively flat loan balances in 4Q24 (excluding FMCB acquisition) due to continued elevated payoffs<br>• Focus on profitable growth while aligning loan growth with core deposit growth over time<br>• Target loan-to-deposit ratio between 95% and 105%<br>Balance Sheet<br>Growth<br>• Moderate NIM expansion beginning in 4Q24, dependent on pace of additional rate cuts and normalizing yield curve<br>• Closing of the FMCB acquisition to provide a NIM tailwind in 2025<br>Net Interest<br>Margin<br>• Modest decline in tangible common equity and CET1 ratios due to larger balance sheet from FMCB acquisition<br>• Ongoing evaluation of potential share repurchases based on valuation, capital levels, and other uses of capital<br>Capital<br>Levels
---
2024 Strategic Priorities<br>19<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 in line 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 6.9%<br>annualized<br>• Announced strategic acquisition of<br>First Minnetonka City Bank<br>• C&I growth of 8.4% annualized<br>• Launched a new CRM platform to<br>enhance the client experience and<br>create new efficiencies<br>• YTD net charge-off ratio of 0.03%<br>annualized<br>• Well-reserved with allowance to<br>total loans of 1.38%<br>1 Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000
---
APPENDIX<br>20
---
Interest Rate Sensitivity<br>21<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 interest 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>• $620 million of fixed- and adjustable-rate loans scheduled to reprice over<br>the next year<br>• Leveraged 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>• Strong 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>• $1.4 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>(2.4)%<br>+3.1%<br>3Q24<br>+6.5%<br>(0.6)%<br>+2.5%<br>3Q23<br>+4.9%<br>-300 bps +7.2% +6.5% +10.0% +11.1%<br>(1.3)%<br>+3.0%<br>4Q23<br>+5.9%<br>+8.8%
---
Well-Diversified Loan Portfolio<br>with Multifamily Expertise<br>22 Dollars in millions<br>CRE NOO<br>28.0%<br>Multifamily<br>37.4%<br>C&D<br>4.5%<br>1-4 Family<br>Mortgage<br>11.4%<br>CRE OO<br>5.0%<br>C&I<br>13.4%<br>Consumer<br>& Other<br>0.3%<br>Loan Mix<br>by Type<br>$3.7<br>Billion<br>• Strong C&I growth YTD with balances up 8.4% annualized<br>• Continued migration out of Construction & Development as projects completed the construction phase<br>• Remain comfortable with the diversity of the loan portfolio, including CRE and Multifamily concentrations, given<br>portfolio performance and expertise<br>3Q24 Loan Growth by Type (vs. 2Q24)<br>$(38)<br>$(30)<br>$(25)<br>$(25)<br>$(4)<br>$3<br>$4<br>Multifamily<br>1-4 Family Mortgage<br>Construction & Development<br>C&I<br>CRE Owner Occupied<br>CRE Nonowner Occupied<br>Consumer & Other
---
High Quality Securities Portfolio<br>23<br>38% 39% 38% 34% 31%<br>22% 22% 21%<br>22% 17%<br>22%<br>22% 21%<br>23% 21%<br>18% 16%<br>17% 20% 21%<br>$553 15%<br>$604 $633 $601<br>$665<br>3Q23 4Q23 1Q24 2Q24 3Q24<br>Mortgage-Backed Securities Municipal Bonds<br>U.S. Treasuries<br>Corporate Securities<br>Securities Available for Sale Portfolio (dollars in millions)<br>AAA<br>39%<br>AA<br>29%<br>A<br>2%<br>BBB<br>14%<br>BB<br>1%<br>NR<br>15%<br>Rating Mix<br>Derivatives Portfolio Offsetting AOCI Impact (dollars in thousands)<br>$(62,216)<br>$(27,863)<br>$34,145<br>$17,217<br>$(23,766)<br>$(11,416)<br>3Q23 3Q24<br>MTM Securities MTM Derivatives Net Impact on AOCI1<br>• No held-to-maturity securities<br>• Securities portfolio average duration of 5.9 years<br>• Average securities portfolio yield of 5.01%<br>• Unrealized losses on available-for-sale securities were 6.2% of<br>stockholders’ equity<br>• AOCI / Total Risk-Based Capital of 2.0% vs. peer bank<br>median of 8.0%2<br>1 Includes the tax-effected impact of $9,583 in 3Q23 and $4,604 in 3Q24<br>2 2Q24 median for publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion (Source: S&P Capital IQ)<br>Other
---
Ample Liquidity and Borrowing Capacity<br>24 1 Excludes $146M of pledged securities at September 30, 2024<br>Dollars in millions<br>10.2% 11.5% 12.1% 11.3%<br>14.5%<br>37.6%<br>37.0% 35.5% 36.1%<br>34.2%<br>$2,181 $2,234 $2,249 $2,222<br>$2,290<br>3Q23 4Q23 1Q24 2Q24 3Q24<br>Off-Balance Sheet Liquidity as a % of Assets<br>On-Balance Sheet Liquidity as a % of Assets<br>Liquidity Position with 2.4x Coverage of Uninsured Deposits Significantly Enhanced Liquidity Position Since 2022<br>Funding Source 9/30/2024 12/31/2022 Change<br>Cash and Cash Equivalents $ 168 $ 4 8 $ 120<br>Unpledged Securities1<br> 519 549 (30)<br>FHLB Capacity 509 391 118<br>FRB Discount Window 868 158 710<br>Unsecured Lines of Credit 200 208 (8)<br>Secured Line of Credit 26 26 0<br> Total $ 2,290 $ 1,380 $ 910<br>Available Balance
---
Reconciliation of Non-GAAP Financial<br>Measures – Efficiency, TCE, Core Loan<br>Yield, and ROATCE<br>25 Dollars in thousands<br>Core Loan Yield<br>September 30,<br>2023<br>December 31,<br>2023<br>March 31,<br>2024<br>June 30,<br>2024<br>September 30,<br>2024<br>Loan Interest Income (Tax-Equivalent Basis) $ 49,326 $ 50,022 $ 49,858 $ 51,592 $ 52,118<br>Less: Loan Fees (914) (751) (608) (767) (968)<br> Core Loan Interest Income $ 48,412 $ 49,271 $ 49,250 $ 50,825 $ 51,150<br>Average Loans $ 3,722,594 $ 3,726,126 $ 3,729,355 $ 3,771,768 $ 3,721,654<br>Core Loan Yield 5.16% 5.25% 5.31% 5.42% 5.47%<br>As of and for the quarter ended,<br>Efficiency Ratio<br>September 30,<br>2023<br>December 31,<br>2023<br>March 31,<br>2024<br>June 30,<br>2024<br>September 30,<br>2024<br>Noninterest Expense $ 15,237 $ 15,740 $ 15,189 $ 15,539 $ 15,760 Net Income Available to Common Shareholders<br>Less: Amortization Intangible Assets (9) (9) (9) (8) (9)<br>Adjusted Noninterest Expense $ 15,228 $ 15,731 $ 15,180 $ 15,531 $ 15,751 Average Total Shareholders' Equity<br>Less: Average Preferred Stock<br>Net Interest Income $ 25,421 $ 25,314 $ 24,631 $ 24,996 $ 25,599 Average Total Common Shareholders' Equity<br>Noninterest Income 1,726 1,409 1,550 1,763 1,522 Less: Effects of Average Intangible Assets<br>Less: (Gain) Loss on Sales of Securities - 2 7 (93) (320) 2 8 Average Tangible Common Equity<br>Adjusted Operating Revenue $ 27,147 $ 26,750 $ 26,088 $ 26,439 $ 27,149 Annualized Return on Average Tangible Common Equity<br> Efficiency Ratio 56.1% 58.8% 58.2% 58.7% 58.0%<br>Tangible Common Equity &<br>Tangible Common Equity/Tangible Assets<br>September 30,<br>2023<br>December 31,<br>2023<br>March 31,<br>2024<br>June 30,<br>2024<br>September 30,<br>2024<br>Total Shareholders' Equity $ 415,960 $ 425,515 $ 433,611 $ 439,241 $ 452,200<br>Less: Preferred Stock (66,514) (66,514) (66,514) (66,514) (66,514)<br>Total Common Shareholders' Equity 349,446 359,001 367,097 372,727 385,686<br>Less: Intangible Assets (2,823) (2,814) (2,806) (2,797) (2,789)<br>Tangible Common Equity $ 346,623 $ 356,187 $ 364,291 $ 369,930 $ 382,897<br>Total Assets $ 4,557,070 $ 4,611,990 $ 4,723,109 $ 4,687,035 $ 4,691,517<br>Less: Intangible Assets (2,823) (2,814) (2,806) (2,797) (2,789)<br>Tangible Assets $ 4,554,247 $ 4,609,176 $ 4,720,303 $ 4,684,238 $ 4,688,728<br>Tangible Common Equity/Tangible Assets 7.61% 7.73% 7.72% 7.90% 8.17%<br>$ 443,077<br> (66,514)<br>$ 376,563<br> (2,794)<br>$ 373,769<br>8.16%<br>As of and for the quarter ended,<br>ROATCE<br>As of and for the quarter ended,<br>September 30,<br>2024<br>$ 7,662<br>As of and for the quarter ended,
---
Reconciliation of Non-GAAP Financial<br>Measures – PPNR<br>26 Dollars in thousands<br>Pre-Provision Net Revenue<br>September 30,<br>2023<br>December 31,<br>2023<br>March 31,<br>2024<br>June 30,<br>2024<br>September 30,<br>2024<br>Noninterest Income $ 1,726 $ 1,409 $ 1,550 $ 1,763 $ 1,522<br>Less: (Gain) Loss on Sales on Securities - 27 (93) (320) 28<br>Less: FHLB Advance Prepayment Income (493) - - - -<br> Total Operating Noninterest Income 1,233 1,436 1,457 1,443 1,550<br>Plus: Net Interest Income 25,421 25,314 24,631 24,996 25,599<br> Net Operating Revenue $ 26,654 $ 26,750 $ 26,088 $ 26,439 $ 27,149<br>Noninterest Expense $ 15,237 $ 15,740 $ 15,189 $ 15,539 $ 15,760<br> Total Operating Noninterest Expense $ 15,237 $ 15,740 $ 15,189 $ 15,539 $ 15,760<br>Pre-Provision Net Revenue $ 11,417 $ 11,010 $ 10,899 $ 10,900 $ 11,389<br>Plus:<br> Non-Operating Revenue Adjustments 493 (27) 93 320 (28)<br>Less:<br> Provision for (Recovery of) Credit Losses (600) (250) 750 600 -<br> Provision for Income Taxes 2,881 2,360 2,411 2,505 2,686<br>Net Income $ 9,629 $ 8,873 $ 7,831 $ 8,115 $ 8,675<br>Average Assets $ 4,504,937 $ 4,567,446 $ 4,592,838 $ 4,646,517 $ 4,703,804<br>Pre-Provision Net Revenue Return on Average Assets 1.01% 0.96% 0.95% 0.94% 0.96%<br>As of and for the quarter ended,
---
Reconciliation of Non-GAAP Financial<br>Measures – Tangible Book Value<br>27 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>Tangible Book Value Per Share<br>June 30,<br>2024<br>September 30,<br>2024<br>Book Value Per Common Share $ 13.63 $ 14.06<br>Less: Effects of Intangible Assets (0.10) (0.10)<br>Tangible Book Value Per Common Share $ 13.53 $ 13.96<br>Total Common Shares 27,348,049 27,425,690<br>As of and for the quarter ended,<br>As of and for the quarter ended,<br>As of and for the quarter ended,<br>As of and for the quarter ended,
---