8-K

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UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

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FORM 8-K CURRENT REPORT

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

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October 28, 2021

Date of Report

(Date of earliest event reported)

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BRIDGEWATER BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

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​<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)

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

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

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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:

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

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

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

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

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

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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

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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).

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Emerging growth company ☒

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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 28, 2021, Bridgewater Bancshares, Inc. (the “Company”) issued a press release announcing its financial results for the three and nine months ended September 30, 2021. 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 9.01           Financial Statements and Exhibits.

(d)****Exhibits

Exhibit 99.1	Press Release of Bridgewater Bancshares, Inc., dated October 28, 2021, regarding third quarter 2021 financial results
Exhibit 99.2	Investor Presentation dated October 28, 2021
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Exhibit 104	Cover Page Interactive Data File (embedded within the Inline XBRL document)
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​ 2

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.

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​	Bridgewater Bancshares, Inc.
​	​
​	​
Date: October 28, 2021	​
​	By: /s/ Jerry Baack
​	Name: Jerry Baack
​	Title: Chairman, Chief Executive Officer and President

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​ 3

​ Exhibit 99.1

Bridgewater Bancshares, Inc. Announces Record Third Quarter 2021 Net Income of $11.5 Million, $0.40 Diluted Earnings Per Common Share

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Bridgewater Bancshares, Inc. (Nasdaq: BWB) (the Company), the parent company of Bridgewater Bank (the Bank), today announced net income of $11.5 million for the third quarter of 2021, a 4.7% increase over net income of $11.0 million for the second quarter of 2021, and a 60.4% increase over net income of $7.2 million for the third quarter of 2020. Net income per diluted common share for the third quarter of 2021 was $0.40, a 4.8% increase compared to $0.38 per diluted common share for the second quarter of 2021, and a 60.8% increase, compared to $0.25 per diluted common share for the same period in 2020.

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“Bridgewater’s third consecutive quarter of record net income was highlighted by a continuation of our robust organic loan growth, as well as two capital raising transactions to support our ongoing growth plans,” said Chairman, Chief Executive Officer, and President, Jerry Baack. “Driven by expanded lending teams, strong brand penetration and M&A-related market disruption, we are generating consistent loan growth by providing our clients with our signature high-touch and responsive level of service. As a result, we have been able to drive continued revenue growth and maintain an adjusted efficiency ratio in the low 40% range, even as we make incremental investments in the business to support our broader growth strategy. With superb asset quality trends and successful subordinated debt and preferred stock issuances during the third quarter, we are well positioned to continue our unique growth story and drive shareholder value going forward.”

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Third Quarter 2021 Financial Results

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	**** ​	​	​	​	**** ​	Diluted		​	​	Nonperforming	​	​	Adjusted	​
ROA	​	​	PPNR ROA ^(1)^	****	​	ROE	​	****	earnings per share		​	​	assets to total assets	​	​	efficiency ratio ^(1)^	​
1.37	%	​	2.09	%	​	13.81	%	​	$	0.40	​	​	0.02	%	​	41.5	%

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

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Third Quarter 2021 Highlights

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●

Diluted earnings per common share were $0.40 for the third quarter of 2021, compared to $0.38 per common share for the second quarter of 2021. Adjusted diluted earnings per common share, a non-GAAP financial measure, were $0.41 for the third quarter of 2021, excluding a $582,000 loss, or $0.01 per common share, on the extinguishment of subordinated debt from the partial early redemption of $11.3 million of subordinated debentures issued in July 2017.

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●

Annualized return on average assets (ROA) and annualized return on average shareholders’ equity (ROE) for the third quarter of 2021 were 1.37% and 13.81%, compared to ROA and ROE of 1.43% and 15.40%, respectively, for the second quarter of 2021. Annualized return on average tangible common equity, a non-GAAP financial measure, was 15.47% for the third quarter of 2021, compared to 15.58% for the second quarter of 2021.

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●	Pre-provision net revenue (PPNR), a non-GAAP financial measure, was $17.5 million for the third quarter of 2021, an increase of 10.3%, compared to $15.9 million for the second quarter of 2021. PPNR ROA, a non-GAAP financial measure, was 2.09% for the third quarter of 2021, compared to 2.07% for the second quarter of 2021.

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●	Gross loans increased $117.8 million in the third quarter of 2021, or 18.0% annualized, compared to the second quarter of 2021. Gross loans, excluding Paycheck Protection Program (PPP) loans, increased $162.7 million in the third quarter of 2021, or 25.9% annualized, compared to the second quarter of 2021.

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●	Deposits increased $133.3 million in the third quarter of 2021, or 19.4% annualized, compared to the second quarter of 2021.

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●	Net interest margin (on a fully tax-equivalent basis) was 3.54% for the third quarter of 2021, compared to 3.52% in the second quarter of 2021.

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●	The adjusted efficiency ratio, a non-GAAP financial measure which excludes the impact of certain non-routine income and expenses from noninterest expense, was 41.5% for the third quarter of 2021, compared to 41.5% for the second quarter of 2021.

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●	A loan loss provision of $1.3 million was recorded in the third quarter of 2021 to support strong organic loan growth. The allowance for loan losses to total loans was 1.43% at September 30, 2021, compared to 1.45% at June 30, 2021. The allowance for loan losses to total loans, excluding PPP loans, was 1.46% at September 30, 2021, compared to 1.50% at June 30, 2021.

​ Page 1 of 19

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●	Annualized net loan charge-offs (recoveries) as a percentage of average loans were 0.00% for the third quarter of 2021, compared to 0.00% for the second quarter of 2021.

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●	Tangible book value per share, a non-GAAP financial measure, increased 3.9%, or $0.40, to $10.62 at September 30, 2021, compared to $10.22 at June 30, 2021.

Page 2 of 19

​ Key Financial Measures

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	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,
​	****	2021		​	2021		​	2020			****	2021		****	2020
Per Common Share Data	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Basic Earnings Per Share	​	$	0.41	​	$	0.39	​	$	0.25	​	​	$	1.18	​	$	0.77	​
Diluted Earnings Per Share	​	​	0.40	​	​	0.38	​	​	0.25	​	​	​	1.14	​	​	0.76	​
Adjusted Diluted Earnings Per Share^(1)^	​	​	0.41	​	​	0.38	​	​	0.25	​	​	​	1.16	​	​	0.80	​
Book Value Per Share	​	​	10.73	​	​	10.33	​	​	9.25	​	​	​	10.73	​	​	9.25	​
Tangible Book Value Per Share ^(1)^	​	​	10.62	​	​	10.22	​	​	9.13	​	​	​	10.62	​	​	9.13	​
Basic Weighted Average Shares Outstanding	​	​	28,047,280	​	​	28,040,762	​	​	28,683,855	​	​	​	28,035,246	​	​	28,717,142	​
Diluted Weighted Average Shares Outstanding	​	​	29,110,547	​	​	29,128,181	​	​	29,174,601	​	​	​	29,077,850	​	​	29,300,763	​
Shares Outstanding at Period End	​	​	28,066,822	​	​	28,162,777	​	​	28,710,775	​	​	​	28,066,822	​	​	28,710,775	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Selected Performance Ratios	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Return on Average Assets (Annualized)	​	​	1.37	%	​	1.43	%	​	1.05	%	​	​	1.42	%	​	1.16	%
Pre-Provision Net Revenue Return on Average Assets (Annualized) ^(1)^	​	​	2.09	​	​	2.07	​	​	1.94	​	​	​	2.10	​	​	2.01	​
Return on Average Shareholders' Equity (Annualized)	​	​	13.81	​	​	15.40	​	​	10.84	​	​	​	14.95	​	​	11.57	​
Return on Average Tangible Common Equity (Annualized)^(1)^	​	​	15.47	​	​	15.58	​	​	10.98	​	​	​	15.69	​	​	11.73	​
Yield on Interest Earning Assets	​	​	4.14	​	​	4.17	​	​	4.30	​	​	​	4.20	​	​	4.53	​
Yield on Total Loans, Gross	​	​	4.65	​	​	4.56	​	​	4.73	​	​	​	4.65	​	​	4.91	​
Cost of Interest Bearing Liabilities	​	​	0.88	​	​	0.96	​	​	1.50	​	​	​	0.95	​	​	1.63	​
Cost of Total Deposits	​	​	0.48	​	​	0.54	​	​	0.87	​	​	​	0.53	​	​	1.03	​
Net Interest Margin ^(2)^	​	​	3.54	​	​	3.52	​	​	3.28	​	​	​	3.55	​	​	3.41	​
Core Net Interest Margin ^(1)(2)^	​	​	3.22	​	​	3.31	​	​	3.14	​	​	​	3.29	​	​	3.24	​
Efficiency Ratio^(1)^	​	​	43.9	​	​	42.0	​	​	42.3	​	​	​	42.4	​	​	45.1	​
Adjusted Efficiency Ratio ^(1)^	​	​	41.5	​	​	41.5	​	​	41.7	​	​	​	41.3	​	​	42.0	​
Noninterest Expense to Average Assets (Annualized)	​	​	1.58	​	​	1.50	​	​	1.42	​	​	​	1.53	​	​	1.58	​
Adjusted Noninterest Expense to Average Assets (Annualized) ^(1)^	​	​	1.49	​	​	1.48	​	​	1.40	​	​	​	1.49	​	​	1.47	​
Loan to Deposit Ratio	​	​	95.0	​	​	95.3	​	​	99.4	​	​	​	​	​	​	​	​
Core Deposits to Total Deposits ^(3)^	​	​	83.3	​	​	81.2	​	​	77.1	​	​	​	​	​	​	​	​
Tangible Common Equity to Tangible Assets ^(1)^	​	​	8.81	​	​	9.10	​	​	9.46	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Capital Ratios (Bank Only) ^(4)^	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Tier 1 Leverage Ratio	​	​	10.96	%	​	10.57	%	​	11.24	%	​	​	​	​	​	​	​
Common Equity Tier 1 Risk-based Capital Ratio	​	​	11.88	​	​	11.24	​	​	12.60	​	​	​	​	​	​	​	​
Tier 1 Risk-based Capital Ratio	​	​	11.88	​	​	11.24	​	​	12.60	​	​	​	​	​	​	​	​
Total Risk-based Capital Ratio	​	​	13.13	​	​	12.49	​	​	13.85	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Capital Ratios (Consolidated)^(4)^	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Tier 1 Leverage Ratio	​	​	10.70	%	​	9.08	%	​	9.83	%	​	​	​	​	​	​	​
Common Equity Tier 1 Risk-based Capital Ratio	​	​	9.47	​	​	9.67	​	​	11.03	​	​	​	​	​	​	​	​
Tier 1 Risk-based Capital Ratio	​	​	11.65	​	​	9.67	​	​	11.03	​	​	​	​	​	​	​	​
Total Risk-based Capital Ratio	​	​	15.93	​	​	13.49	​	​	15.45	​	​	​	​	​	​	​	​

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(1)	Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.
(2)	Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of 21%.
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(3)	Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000.
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(4)	Preliminary data. Current period subject to change prior to filings with applicable regulatory agencies.
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​ Page 3 of 19

​ Selected Financial Data

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	September 30,		​	June 30,		​	March 31,		​	December 31,		​	September 30,
(dollars in thousands)	****	2021		****	2021		​	2021		​	2020		​	2020
Selected Balance Sheet Data	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Assets	​	$	3,389,125	​	$	3,162,612	​	$	3,072,359	​	$	2,927,345	​	$	2,774,564
Total Loans, Gross	​	​	2,712,012	​	​	2,594,186	​	​	2,426,123	​	​	2,326,428	​	​	2,259,228
Allowance for Loan Losses	​	​	38,901	​	​	37,591	​	​	35,987	​	​	34,841	​	​	31,381
Goodwill and Other Intangibles	​	​	3,153	​	​	3,200	​	​	3,248	​	​	3,296	​	​	3,344
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Deposits	​	​	2,854,157	​	​	2,720,906	​	​	2,638,654	​	​	2,501,636	​	​	2,273,044
Tangible Common Equity^(1)^	​	​	298,135	​	​	287,630	​	​	275,923	​	​	262,109	​	​	262,088
Total Shareholders' Equity	​	​	367,803	​	​	290,830	​	​	279,171	​	​	265,405	​	​	265,432
Average Total Assets - Quarter-to-Date	​	​	3,332,301	​	​	3,076,712	​	​	2,940,262	​	​	2,816,032	​	​	2,711,755
Average Shareholders' Equity - Quarter-to-Date	​	​	330,604	​	​	286,311	​	​	272,729	​	​	265,716	​	​	263,195

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

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	For the Three Months Ended								​	For the Nine Months Ended
​	​	September 30,		​	June 30,		​	September 30,		​	September 30,		​	September 30,
(dollars in thousands)	​	2021		​	2021		****	2020		​	2021		****	2020
Selected Income Statement Data	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest Income	​	$	33,517	​	$	31,147	​	$	28,493	​	$	95,104	​	$	84,127
Interest Expense	​	​	4,844	​	​	4,859	​	​	6,814	​	​	14,748	​	​	21,004
Net Interest Income	​	​	28,673	​	​	26,288	​	​	21,679	​	​	80,356	​	​	63,123
Provision for Loan Losses	​	​	1,300	​	​	1,600	​	​	3,750	​	​	4,000	​	​	8,850
Net Interest Income after Provision for Loan Losses	​	​	27,373	​	​	24,688	​	​	17,929	​	​	76,356	​	​	54,273
Noninterest Income	​	​	1,410	​	​	1,603	​	​	1,157	​	​	4,021	​	​	4,853
Noninterest Expense	​	​	13,236	​	​	11,477	​	​	9,672	​	​	35,636	​	​	30,129
Income Before Income Taxes	​	​	15,547	​	​	14,814	​	​	9,414	​	​	44,741	​	​	28,997
Provision for Income Taxes	​	​	4,038	​	​	3,821	​	​	2,240	​	​	11,568	​	​	6,782
Net Income	​	$	11,509	​	$	10,993	​	$	7,174	​	$	33,173	​	$	22,215

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Income Statement

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Net Interest Income

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Net interest income was $28.7 million for the third quarter of 2021, an increase of $2.4 million, or 9.1%, from $26.3 million in the second quarter of 2021, and an increase of $7.0 million, or 32.3%, from $21.7 million in the third quarter of 2020. The linked-quarter and year-over-year increases in net interest income were primarily due to robust growth in average interest earning assets, lower rates paid on deposits, and the recognition of PPP loan origination fees, offset partially by declining yields on loans. Average interest earning assets were $3.23 billion for the third quarter of 2021, an increase of $214.9 million, or 7.1%, from $3.02 billion for the second quarter of 2021, and an increase of $578.4 million, or 21.8%, from $2.66 billion for the third quarter of 2020. The linked-quarter increase in average interest earning assets was primarily due to increased cash balances and continued strong organic growth in the loan portfolio, offset partially by the payoff of PPP loans. The year-over-year increase in average interest earning assets was primarily due to increased cash balances, continued purchases of investment securities, and strong organic growth in the loan portfolio, offset partially by the payoff of PPP loans.

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Net interest margin (on a fully tax-equivalent basis) for the third quarter of 2021 was 3.54%, a 2 basis point increase from 3.52% in the second quarter of 2021, and a 26 basis point increase from 3.28% in the third quarter of 2020. Core net interest margin (on a fully tax-equivalent basis), a non-GAAP financial measure which excludes the impact of loan fees and PPP balances, interest, and fees, for the third quarter of 2021 was 3.22%, a 9 basis point decline from 3.31% in the second quarter of 2021, and an 8 basis point increase from 3.14% in the third quarter of 2020. Even though the capital raises during the quarter increased capital levels to support future growth, it is worth noting the net proceeds in the near-term compounded excess liquidity and negatively affected the net interest margin by 6 basis points.

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While the origination volume of PPP loans earning 1.00% has negatively impacted net interest margin, the recognition of fees associated with the originations has benefited net interest margin for each of the past four quarters. The SBA has been forgiving PPP loans, which has accelerated the recognition of PPP fees starting in the fourth quarter of 2020 and continuing into the third quarter of 2021. The Company recognized $1.6 million of PPP origination fees during the third quarter of 2021, compared to $1.4 million during the second Page 4 of 19

​ quarter of 2021. The elevated fee recognition is illustrated in the 9.15% PPP loan yield for the third quarter of 2021, compared to 4.75% for the second quarter of 2021.

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The following table summarizes PPP loan originations and net origination fees as of September 30, 2021:

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Originated					​	Outstanding					​	Program Lifetime
​	​	Number		​	Principal		​	Number		​	Principal		​	Net Origination		​	Net Origination
(dollars in thousands)	****	of Loans		****	Balance		****	of Loans		****	Balance		****	Fees Generated		****	Fees Earned
Round One PPP Loans	​	​	1,200	​	$	181,600	​	​	72	​	$	6,715	​	$	5,706	​	$	5,624
Round Two PPP Loans	​	​	651	​	​	78,386	​	​	301	​	​	47,475	​	​	3,544	​	​	1,769
Totals	​	​	1,851	​	$	259,986	​	​	373	​	$	54,190	​	$	9,250	​	$	7,393

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Interest income was $33.5 million for the third quarter of 2021, an increase of $2.4 million, or 7.6%, from $31.1 million in the second quarter of 2021, and an increase of $5.0 million, or 17.6%, from $28.5 million in the third quarter of 2020. The yield on interest earning assets (on a fully tax-equivalent basis) was 4.14% in the third quarter of 2021, compared to 4.17% in the second quarter of 2021, and 4.30% in the third quarter of 2020. The linked-quarter decrease in the yield on interest earning assets was primarily due to excess cash balances and the historically low interest rate environment resulting in a lower core loan yield, offset partially by $1.6 million of PPP loan origination fees. The year-over-year decline in the yield on interest earning assets was primarily due to excess cash balances and the historically low interest rate environment resulting in lower loan and security yields.

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Loan interest income and loan fees remain the primary contributing factors to the changes in yield on interest earning assets. The aggregate loan yield, excluding PPP loans, decreased to 4.51% in the third quarter of 2021, which was 3 basis points lower than 4.54% in the second quarter of 2021, and 42 basis points lower than 4.93% in the third quarter of 2020. While loan fees have maintained a relatively stable contribution to the aggregate loan yield, the historically low yield curve has resulted in a declining core yield on loans in comparison to both prior periods.

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

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended													​
​	​	September 30, 2021	​	​	June 30, 2021	​	​	March 31, 2021	​	​	December 31, 2020	​	​	September 30, 2020	****
Interest	​	4.28	%	​	4.37	%	​	4.50	%	​	4.59	%	​	4.69	%
Fees	​	0.23	​	​	0.17	​	​	0.22	​	​	0.28	​	​	0.24	​
Yield on Loans, Excluding PPP Loans	​	4.51	%	​	4.54	%	​	4.72	%	​	4.87	%	​	4.93	%

​

Interest expense was $4.8 million for the third quarter of 2021, a decrease of $15,000, or 0.3%, from $4.9 million in the second quarter of 2021, and a decrease of $2.0 million, or 28.9%, from $6.8 million in the third quarter of 2020. The cost of interest bearing liabilities declined 8 basis points on a linked-quarter basis from 0.96% in the second quarter of 2021 to 0.88% in the third quarter of 2021, primarily due to lower rates paid on deposits, offset partially by additional subordinated debentures. On a year-over-year basis, the cost of interest bearing liabilities decreased 62 basis points from 1.50% in the third quarter of 2020 to 0.88% in the third quarter of 2021, primarily due to lower rates paid on deposits, the payoff of the Company’s notes payable, and the early extinguishment of $94.0 million of longer term FHLB advances, offset partially by strong growth of interest bearing deposits and additional subordinated debentures.

​

Interest expense on deposits was $3.4 million for the third quarter of 2021, a decrease of $96,000, or 2.7%, from $3.5 million in the second quarter of 2021, and a decrease of $1.4 million, or 29.4%, from $4.8 million in the third quarter of 2020. The cost of total deposits declined 6 basis points on a linked-quarter basis from 0.54% in the second quarter of 2021, and declined 39 basis points on a year-over-year basis from 0.87% in the third quarter of 2020, to 0.48% in the third quarter of 2021, primarily due to deposit rate cuts consistent with a lower rate environment and the continued downward repricing of time deposits.

​ Page 5 of 19

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

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	For the Three Months Ended																							****
​	​	September 30, 2021							​	June 30, 2021							****	September 30, 2020							****
​	​	Average		​	Interest		​	Yield/	​	Average		​	Interest		​	Yield/	****	Average		​	Interest		​	Yield/	****
​	****	Balance		****	& Fees		****	Rate	****	Balance		****	& Fees		****	Rate	****	Balance		****	& Fees		****	Rate	****
(dollars in thousands)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest Earning Assets:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Cash Investments	​	$	187,405	​	$	67	​	0.14	%	$	88,067	​	$	33	​	0.15	%	$	101,787	​	$	42	​	0.16	%
Investment Securities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Taxable Investment Securities	​		314,367	​		1,751	​	2.21	​		314,049	​		1,647	​	2.10	​		256,808	​		1,389	​	2.15	​
Tax-Exempt Investment Securities^(1)^	​		71,801	​		737	​	4.07	​		77,029	​		842	​	4.38	​		82,579	​		900	​	4.33	​
Total Investment Securities	​		386,168	​		2,488	​	2.56	​		391,078	​		2,489	​	2.55	​		339,387	​		2,289	​	2.68	​
Paycheck Protection Program Loans ^(2)^	​		76,006	​	​	1,753	​	9.15	​		149,312	​	​	1,767	​	4.75	​		181,397	​	​	1,173	​	2.57	​
Loans ^(1)(2)^	​	​	2,579,021	​	​	29,348	​	4.51	​	​	2,384,759	​	​	27,011	​	4.54	​	​	2,025,410	​	​	25,081	​	4.93	​
Total Loans	​		2,655,027	​		31,101	​	4.65	​		2,534,071	​		28,778	​	4.56	​		2,206,807	​		26,254	​	4.73	​
Federal Home Loan Bank Stock	​		5,701	​	​	68	​	4.65	​		6,221	​	​	54	​	3.51	​		7,901	​	​	127	​	6.38	​
Total Interest Earning Assets	​		3,234,301	​		33,724	​	4.14	%		3,019,437	​		31,354	​	4.17	%		2,655,882	​		28,712	​	4.30	%
Noninterest Earning Assets	​	​	98,000	​	​	​	​	​	​	​	57,275	​	​	​	​	​	​	​	55,873	​	​	​	​	​	​
Total Assets	​	$	3,332,301	​	​	​	​	​	​	$	3,076,712	​	​	​	​	​	​	$	2,711,755	​	​	​	​	​	​
Interest Bearing Liabilities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Deposits:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest Bearing Transaction Deposits	​	$	479,580	​	$	562	​	0.47	%	$	421,132	​	$	520	​	0.50	%	$	306,162	​	$	400	​	0.52	%
Savings and Money Market Deposits	​		801,354	​	​	904	​	0.45	​		764,632	​	​	940	​	0.49	​		501,246	​	​	1,106	​	0.88	​
Time Deposits	​		318,222	​	​	928	​	1.16	​		332,346	​	​	1,075	​	1.30	​		369,975	​	​	1,899	​	2.04	​
Brokered Deposits	​		440,167	​	​	1,023	​	0.92	​		379,768	​	​	978	​	1.03	​		419,744	​	​	1,435	​	1.36	​
Total Interest Bearing Deposits	​	​	2,039,323	​	​	3,417	​	0.66	​	​	1,897,878	​	​	3,513	​	0.74	​	​	1,597,127	​	​	4,840	​	1.21	​
Federal Funds Purchased	​		—	​	​	—	​	—	​		9,932	​	​	6	​	0.24	​		152	​	​	—	​	0.33	​
Notes Payable	​		—	​	​	—	​	—	​		—	​	​	—	​	—	​		11,500	​	​	108	​	3.74	​
FHLB Advances	​		54,130	​	​	213	​	1.56	​		57,500	​	​	228	​	1.59	​		129,457	​	​	748	​	2.30	​
Subordinated Debentures	​		91,337	​	​	1,214	​	5.27	​		73,862	​	​	1,112	​	6.04	​		73,649	​	​	1,118	​	6.04	​
Total Interest Bearing Liabilities	​		2,184,790	​		4,844	​	0.88	%		2,039,172	​		4,859	​	0.96	%		1,811,885	​		6,814	​	1.50	%
Noninterest Bearing Liabilities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Noninterest Bearing Transaction Deposits	​		784,148	​	​	​	​	​	​		732,299	​	​	​	​	​	​		615,214	​	​	​	​	​	​
Other Noninterest Bearing Liabilities	​	​	32,759	​	​	​	​	​	​	​	18,930	​	​	​	​	​	​	​	21,461	​	​	​	​	​	​
Total Noninterest Bearing Liabilities	​		816,907	​	​	​	​	​	​		751,229	​	​	​	​	​	​		636,675	​	​	​	​	​	​
Shareholders' Equity	​	​	330,604	​	​	​	​	​	​	​	286,311	​	​	​	​	​	​		263,195	​	​	​	​	​	​
Total Liabilities and Shareholders' Equity	​	$	3,332,301	​	​	​	​	​	​	$	3,076,712	​	​	​	​	​	​	$	2,711,755	​	​	​	​	​	​
Net Interest Income / Interest Rate Spread	​	​	​	​		28,880	​	3.26	%	​	​	​		26,495	​	3.21	%	​	​	​		21,898	​	2.80	%
Net Interest Margin ^(3)^	​	​	​	​	​	​	​	3.54	%	​	​	​	​	​	​	3.52	%	​	​	​	​	​	​	3.28	%
Taxable Equivalent Adjustment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Tax-Exempt Investment Securities and Loans	​	​	​	​		(207)	​	​	​	​	​	​		(207)	​	​	​	​	​	​		(219)	​	​	​
Net Interest Income	​	​	​	​	$	28,673	​	​	​	​	​	​	$	26,288	​	​	​	​	​	​	$	21,679	​	​	​

---

(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 6 of 19

​ Provision for Loan Losses

​

The provision for loan losses was $1.3 million for the third quarter of 2021, a decrease of $300,000 from $1.6 million for the second quarter of 2021, and a decrease of $2.5 million from $3.8 million for the third quarter of 2020. The provision recorded in the third quarter of 2021 was attributable to growth of the loan portfolio. The allowance for loan losses to total loans was 1.43% at September 30, 2021, compared to 1.45% at June 30, 2021, and 1.39% at September 30, 2020. The allowance for loan losses to total loans, excluding PPP loans, was 1.46% at September 30, 2021, compared to 1.50% at June 30, 2021, and 1.51% at September 30, 2020.

​

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

​

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

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended								​	Nine Months Ended
​	​	September 30,		​	June 30,		​	September 30,		​	September 30,		​	September 30,
(dollars in thousands)	****	2021		****	2021		****	2020		****	2021		****	2020
Balance at Beginning of Period	​	$	37,591	​	$	35,987	​	$	27,633	​	$	34,841	​	$	22,526
Provision for Loan Losses	​	​	1,300	​	​	1,600	​	​	3,750	​	​	4,000	​	​	8,850
Charge-offs	​	​	(20)	​	​	(3)	​	​	(6)	​	​	(37)	​	​	(54)
Recoveries	​	​	30	​	​	7	​	​	4	​	​	97	​	​	59
Balance at End of Period	​	$	38,901	​	$	37,591	​	$	31,381	​	$	38,901	​	$	31,381

​

Noninterest Income

​

Noninterest income was $1.4 million for the third quarter of 2021, a decrease of $193,000 from $1.6 million for the second quarter of 2021, and an increase of $253,000 from $1.2 million for the third quarter of 2020. The linked-quarter decrease was primarily due to decreased gains on sales of securities, offset partially by an increase in letter of credit fees. The year-over-year increase was primarily due to increased letter of credit fees and bank-owned life insurance income.

​

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

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended								​	Nine Months Ended
​	​	September 30,		​	June 30,		​	September 30,		​	September 30,		​	September 30,
(dollars in thousands)	​	2021		****	2021		****	2020		****	2021		****	2020
Noninterest Income:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Customer Service Fees	​	$	268	​	$	231	​	$	200	​	$	733	​	$	575
Net Gain on Sales of Securities	​	​	48	​	​	702	​	​	109	​	​	750	​	​	1,473
Letter of Credit Fees	​	​	577	​	​	231	​	​	487	​	​	1,135	​	​	1,026
Debit Card Interchange Fees	​	​	143	​	​	141	​	​	119	​	​	414	​	​	310
Swap Fees	​	​	—	​	​	—	​	​	—	​	​	—	​	​	907
Other Income	​	​	374	​	​	298	​	​	242	​	​	989	​	​	562
Totals	​	$	1,410	​	$	1,603	​	$	1,157	​	$	4,021	​	$	4,853

​

Noninterest Expense

​

Noninterest expense was $13.2 million for the third quarter of 2021, an increase of $1.8 million from $11.5 million for the second quarter of 2021, and an increase of $3.6 million from $9.7 million for the third quarter of 2020. The increase in both periods was primarily due to increases in salaries and employee benefits, professional and consulting fees, marketing and advertising, and $582,000 of prepayment fees associated with a partial early redemption of $11.3 million of subordinated debentures issued in July 2017. The linked-quarter increase in salaries and employee benefits reflects both annual merit increases and a full quarter of salaries expense related to the significant net FTE growth experienced during the second quarter of 2021.

​

​ Page 7 of 19

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

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended								​	Nine Months Ended
​	​	September 30,		​	June 30,		​	September 30,		​	September 30,		​	September 30,
(dollars in thousands)	​	2021		****	2021		****	2020		****	2021		****	2020
Noninterest Expense:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Salaries and Employee Benefits	​	$	8,309	​	$	7,512	​	$	6,550	​	$	22,923	​	$	19,352
Occupancy and Equipment	​	​	942	​	​	980	​	​	894	​	​	2,977	​	​	2,279
FDIC Insurance Assessment	​	​	355	​	​	290	​	​	160	​	​	960	​	​	518
Data Processing	​	​	325	​	​	300	​	​	267	​	​	916	​	​	734
Professional and Consulting Fees	​	​	708	​	​	552	​	​	492	​	​	1,804	​	​	1,400
Information Technology and Telecommunications	​	​	598	​	​	549	​	​	385	​	​	1,609	​	​	977
Marketing and Advertising	​	​	418	​	​	314	​	​	94	​	​	1,018	​	​	645
Intangible Asset Amortization	​	​	48	​	​	47	​	​	48	​	​	143	​	​	143
Amortization of Tax Credit Investments	​	​	152	​	​	140	​	​	145	​	​	410	​	​	592
Debt Prepayment Fees	​	​	582	​	​	—	​	​	—	​	​	582	​	​	1,430
Other Expense	​	​	799	​	​	793	​	​	637	​	​	2,294	​	​	2,059
Totals	​	$	13,236	​	$	11,477	​	$	9,672	​	$	35,636	​	$	30,129

​

The Company continues to make hires, reaching 219 full-time equivalent employees at September 30, 2021, compared to 214 employees at June 30, 2021, and 180 employees at September 30, 2020.

​

The efficiency ratio, a non-GAAP financial measure, was 43.9% for the third quarter of 2021, compared to 42.0% for the second quarter of 2021, and 42.3% for the third quarter of 2020. Excluding the impact of certain non-routine income and expenses, the adjusted efficiency ratio, a non-GAAP financial measure, was 41.5% for the third quarter of 2021, 41.5% for the second quarter of 2021 and 41.7% for the third quarter of 2020. The efficiencies of the Company’s “branch-light” model have positioned the Company well, and going forward, provide more flexibility for the Company to make significant investments in technology as the industry adapts to evolving client behavior.

​

Income Taxes

​

The effective combined federal and state income tax rate for the third quarter of 2021 was 26.0%, an increase from 25.8% for the second quarter of 2021 and an increase from 23.8% for the third quarter of 2020. The effective combined federal and state income tax rate for the

nine months ended September 30, 2021 was 25.9%, compared to 23.4% for the nine months ended September 30, 2020.

​

Balance Sheet

​

Total assets at September 30, 2021 were $3.39 billion, a 7.2% increase from $3.16 billion at June 30, 2021, and a 22.1% increase from $2.77 billion at September 30, 2020. The linked-quarter increase in total assets was primarily due to strong organic loan growth and increased on-balance sheet liquidity. The year-over-year increase in total assets was primarily due to increased cash balances, robust organic loan growth, as well as continued purchases of investment securities.

​

Total gross loans at September 30, 2021 were $2.71 billion, an increase of $117.8 million, or 4.5%, over total gross loans of $2.59 billion at June 30, 2021, and an increase of $452.8 million, or 20.0%, over total gross loans of $2.26 billion at September 30, 2020. The increase in the loan portfolio during the third quarter of 2021 was primarily due to growth in the commercial, multifamily and CRE nonowner occupied segments, offset partially by the payoff of PPP loans. When excluding the PPP loans altogether, gross loans grew $162.7 million during the third quarter of 2021, or 25.9% on an annualized basis. The Company's continued strong loan growth has been driven by the expansion of the talented lending teams, PPP-related client acquisition opportunities, the strong and growing brand of the Bank in the Twin Cities market and the M&A-related market disruption in the Twin Cities resulting in client and banker acquisition opportunities.

​

​ Page 8 of 19

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

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	September 30, 2021		​	June 30, 2021		​	March 31, 2021		​	December 31, 2020		​	September 30, 2020		​
(dollars in thousands)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Commercial	​	$	350,081	​	$	321,474	​	$	301,023	​	$	304,220	​	$	287,254	​
Paycheck Protection Program	​	​	54,190	​	​	99,072	​	​	163,258	​	​	138,454	​	​	181,596	​
Construction and Land Development	​	​	257,167	​	​	251,573	​	​	193,372	​	​	170,217	​	​	175,882	​
Real Estate Mortgage:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
1 - 4 Family Mortgage	​	​	290,535	​	​	277,943	​	​	294,964	​	​	294,479	​	​	286,089	​
Multifamily	​	​	865,172	​	​	790,275	​	​	665,415	​	​	626,465	​	​	585,814	​
CRE Owner Occupied	​	​	101,834	​	​	87,507	​	​	79,665	​	​	75,604	​	​	75,963	​
CRE Nonowner Occupied	​	​	786,271	​	​	758,101	​	​	720,396	​	​	709,300	​	​	660,058	​
Total Real Estate Mortgage Loans	​		2,043,812	​		1,913,826	​		1,760,440	​		1,705,848	​		1,607,924	​
Consumer and Other	​	​	6,762	​	​	8,241	​	​	8,030	​	​	7,689	​	​	6,572	​
Total Loans, Gross	​		2,712,012	​		2,594,186	​		2,426,123	​		2,326,428	​		2,259,228	​
Allowance for Loan Losses	​	​	(38,901)	​	​	(37,591)	​	​	(35,987)	​	​	(34,841)	​	​	(31,381)	​
Net Deferred Loan Fees	​	​	(10,199)	​	​	(11,450)	​	​	(11,273)	​	​	(9,151)	​	​	(10,367)	​
Total Loans, Net	​	$	2,662,912	​	$	2,545,145	​	$	2,378,863	​	$	2,282,436	​	$	2,217,480	​

​

Total deposits at September 30, 2021 were $2.85 billion, an increase of $133.3 million, or 4.9%, over total deposits of $2.72 billion at June 30, 2021, and an increase of $581.1 million, or 25.6%, over total deposits of $2.27 billion at September 30, 2020. Deposit growth in the third quarter of 2021 was primarily due to an increase in noninterest bearing and interest bearing transaction deposits and savings and money market deposits, offset partially by a decline in time deposits and brokered deposits. Similar to the loan portfolio, the growth in core deposits has been a result of successful new client and banker acquisition initiatives and the strong, growing brand of the Bank in the Twin Cities market.

​

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

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	September 30, 2021		​	June 30, 2021		​	March 31, 2021		​	December 31, 2020		​	September 30, 2020		​
(dollars in thousands)	****	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Noninterest Bearing Transaction Deposits	​	$	846,490	​	$	758,023	​	$	712,999	​	$	671,903	​	$	685,773	​
Interest Bearing Transaction Deposits	​	​	488,785	​	​	432,123	​	​	433,344	​	​	366,290	​	​	322,253	​
Savings and Money Market Deposits	​	​	791,861	​	​	761,485	​	​	791,583	​	​	657,617	​	​	498,397	​
Time Deposits	​	​	309,824	​	​	321,857	​	​	344,581	​	​	353,543	​	​	363,897	​
Brokered Deposits	​	​	417,197	​	​	447,418	​	​	356,147	​	​	452,283	​	​	402,724	​
Total Deposits	​	$	2,854,157	​	$	2,720,906	​	$	2,638,654	​	$	2,501,636	​	$	2,273,044	​

​

Capital

​

On July 8, 2021, the Company announced the completion of a private placement of $30.0 million in aggregate principal amount of 3.25% fixed-to-floating rate subordinated debentures due 2031. The Company intends to use the net proceeds of the private placement for general corporate purposes, including support for organic growth plans, support for bank level capital ratios and possible redemption or repurchase of outstanding indebtedness.

​

In July of 2021, the Company redeemed $11.3 million of the $25.0 million outstanding of its fixed-to-floating rate subordinated debentures due in 2027. The early redemption of the subordinated debentures was recorded as a loss on the extinguishment of subordinated debt, included in noninterest expense, in the amount of $582,000, consisting of $532,000 in prepayment penalties and $50,000 in unamortized issuance costs.

​

On August 17, 2021, the Company announced the closing of its underwritten public offering of 2,400,000 depositary shares, each representing a 1/100^th^ interest in a share of the Company’s 5.875% Non-Cumulative Perpetual Preferred Stock, Series A (“Series A Preferred Stock”). On August 20, 2021, the underwriters of the offering exercised in full their option to purchase 360,000 additional depositary shares to cover over-allotments. As a result, the gross proceeds from the offering totaled $69.0 million. The Company intends to use the net proceeds from the offering for general corporate purposes, including support for organic growth plans, support for bank level capital ratios and possible redemption or repurchase of outstanding indebtedness. On October 26, 2021, the Company’s Board of Directors declared a quarterly cash dividend on the Series A Preferred Stock, payable on December 1, 2021 to shareholders of record on the Series A Preferred Stock at the close of business on November 15, 2021.

​

Total shareholders’ equity at September 30, 2021 was $367.8 million, an increase of $77.0 million, or 26.5%, over total shareholders’ equity of $290.8 million at June 30, 2021, and an increase of $102.4 million, or 38.6%, over total shareholders’ equity of $265.4 million Page 9 of 19

​ at September 30, 2020. The linked-quarter increase was due to net income retained and the issuance of preferred stock, offset partially by stock repurchases made under the Company’s stock repurchase program. The year-over-year increase was due to net income retained, the issuance of preferred stock and an increase in unrealized gains in the securities and derivatives portfolios, offset partially by stock repurchases made under the Company’s stock repurchase program. The consolidated tier 1 leverage ratio increased to 10.70% at September 30, 2021, compared to 9.08% at June 30, 2021, primarily due to the preferred stock issuance.

​

Strong earnings and capital growth coupled with better asset quality visibility as loan modifications expired, supported management’s decision to resume repurchases under the Company’s stock repurchase program. The Company remains committed to maintaining strong capital levels while enhancing shareholder value as it strategically executes its stock repurchase program in this fluid economic environment. During the third quarter of 2021, the Company repurchased 126,507 shares of its common stock. Shares were repurchased at a weighted average price of $16.11 for a total of $2.0 million.

​

Tangible book value per share, a non-GAAP financial measure, was $10.62 as of September 30, 2021, an increase of 3.9% from $10.22 as of June 30, 2021, and an increase of 16.4% from $9.13 as of September 30, 2020. Tangible common equity as a percentage of tangible assets, a non-GAAP financial measure, was 8.81% at September 30, 2021, compared to 9.10% at June 30, 2021.

​

Asset Quality

​

Annualized net charge-offs as a percent of average loans for the third quarter of 2021 were 0.00%, consistent with 0.00% for the second quarter of 2021 and the third quarter of 2020. At September 30, 2021, the Company’s nonperforming assets, which include nonaccrual loans, loans past due 90 days and still accruing, and foreclosed assets, were $734,000, or 0.02% of total assets, as compared to $761,000, or 0.02% of total assets at June 30, 2021, and $433,000 or 0.02% of total assets at September 30, 2020.

​

The Company has increased oversight and analysis of all segments of the loan portfolio in response to the COVID-19 pandemic, especially in vulnerable industries such as hospitality and restaurants, to proactively monitor evolving credit risk. Loans that have potential weaknesses that warrant a watchlist risk rating at September 30, 2021 totaled $67.4 million, compared to $56.7 million at June 30, 2021, and $50.9 million at September 30, 2020. As the COVID-19 pandemic continues to evolve, the length and extent of the economic uncertainty may result in further watchlist or adverse classifications in the loan portfolio. Loans that warranted a substandard risk rating at September 30, 2021 totaled $7.7 million, compared to $7.2 million at June 30, 2021, and $16.1 million at September 30, 2020.

​

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

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	As of and for the Three Months Ended														​
​	​	September 30,		​	June 30,		​	March 31,		​	December 31,			September 30,
(dollars in thousands)	****	2021		****	2021		****	2021		****	2020		****	2020		****
Selected Asset Quality Data		​	​		​	​		​	​	​	​	​	​	​	​	​
Loans 30-89 Days Past Due	​	$	18		$	—		$	—		$	13		$	458
Loans 30-89 Days Past Due to Total Loans	​	​	0.00	%	​	0.00	%	​	0.00	%	​	0.00	%	​	0.02	%
Nonperforming Loans	​	$	734		$	761		$	770		$	775		$	433
Nonperforming Loans to Total Loans	​	​	0.03	%	​	0.03	%	​	0.03	%	​	0.03	%	​	0.02	%
Foreclosed Assets	​	$	—		$	—		$	—		$	—		$	—
Nonaccrual Loans to Total Loans	​	​	0.03	%	​	0.03	%	​	0.03	%	​	0.03	%	​	0.02	%
Nonaccrual Loans and Loans Past Due 90 Days and Still Accruing to Total Loans	​	​	0.03	​	​	0.03	​	​	0.03	​	​	0.03	​	​	0.02	​
Nonperforming Assets ^(1)^	​	$	734		$	761		$	770		$	775		$	433
Nonperforming Assets to Total Assets ^(1)^	​	​	0.02	%	​	0.02	%	​	0.03	%	​	0.03	%	​	0.02	%
Allowance for Loan Losses to Total Loans	​	​	1.43		​	1.45		​	1.48		​	1.50		​	1.39
Allowance for Loan Losses to Total Loans, Excluding PPP Loans	​	​	1.46	​	​	1.50	​	​	1.59	​	​	1.59	​	​	1.51	​
Allowance for Loans Losses to Nonperforming Loans	​	​	5,299.86		​	4,939.68		​	4,673.64		​	4,495.61		​	7,247.34
Net Loan Charge-Offs (Recoveries) (Annualized) to Average Loans	​	​	0.00		​	0.00		​	(0.01)		​	0.08		​	0.00

---

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

​

The Company developed programs for clients who experienced business and personal disruptions due to the COVID-19 pandemic by providing interest-only modifications, loan payment deferrals, and extended amortization modifications. In accordance with interagency regulatory guidance and the CARES Act, qualifying loans modified in response to the COVID-19 pandemic are not considered troubled debt restructurings. The Company had 13 modified loans totaling $35.4 million outstanding as of September 30, 2021, representing 1.3% of the total loan portfolio, excluding PPP loans, which is down slightly from 1.4% at June 30, 2021.

​

​ Page 10 of 19

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

​

​	​	​	​	​	​	​	​	​	​
(dollars in thousands)	​	Interest-Only		​	Extended Amortization		​	Total
Principal Balance - June 30, 2021	​	$	29,159	​	$	4,778	​	$	33,937
Modification Expired	​	​	(27,521)	​	​	(4,764)	​	​	(32,285)
Additional Modification Granted	​	​	18,313	​	​	4,764	​	​	23,077
New Modifications	​	​	10,623	​	​	—	​	​	10,623
Net Principal Advances (Payments)	​	​	23	​	​	(14)	​	​	9
Principal Balance - September 30, 2021	​	$	30,597	​	$	4,764	​	$	35,361

​

About the Company

​

Bridgewater Bancshares, Inc. (Nasdaq: BWB) is a St. Louis Park, Minnesota-based financial holding company. Bridgewater's banking subsidiary, Bridgewater Bank, is a premier, full-service Twin Cities bank dedicated to serving the diverse needs of commercial real estate investors, entrepreneurs, business clients and high-net-worth individuals. By pairing a range of deposit, lending and business services solutions with a responsive service model, Bridgewater has seen continuous growth and profitability. With total assets of $3.4 billion and seven branches as of September 30, 2021, Bridgewater is considered one of the largest locally led banks in the State of Minnesota, and has received numerous awards for its growth, banking services and esteemed corporate culture.

​

Investor Relations Contact:

​

Justin Horstman

Director of Investor Relations

investorrelations@bwbmn.com

952-542-5169

​

Use of Non-GAAP financial measures

​

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

​

Forward-Looking Statements

​

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

​

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the negative effects of the COVID-19 pandemic, including its effects on the economic environment, our clients and our operations, including due to supply chain disruptions, as well as any changes to federal, state or local government laws, regulations or orders in connection with the pandemic; loan concentrations in our portfolio; the overall health of the local and national real estate market; our ability to successfully manage credit risk; business and economic conditions generally and in the financial services industry, nationally and within our market area; our ability to maintain an adequate level of allowance for loan losses; new or revised accounting standards, including as a result of the future implementation of the Current Expected Credit Loss standard; the concentration of large loans to certain borrowers; the concentration of large deposits from certain clients; our ability to successfully manage liquidity risk; our dependence on non-core funding sources and our cost of funds; our ability to raise additional capital to implement our business plan; our ability to implement our growth strategy and manage costs effectively; developments and uncertainty related to the future use and availability of some reference rates, such as the London Interbank Page 11 of 19

​ Offered Rate, as well as other alternative reference rates; the composition of our senior leadership team and our ability to attract and retain key personnel; the occurrence of fraudulent activity, breaches or failures of our information security controls or cybersecurity-related incidents; interruptions involving our information technology and telecommunications systems or third-party servicers; competition in the financial services industry; the effectiveness of our risk management framework; the commencement and outcome of litigation and other legal proceedings and regulatory actions against us; the impact of recent and future legislative and regulatory changes, including changes to federal and state corporate tax rates; interest rate risk; fluctuations in the values of the securities held in our securities portfolio; the imposition of tariffs or other governmental policies impacting the value of products produced by our commercial borrowers; severe weather, natural disasters, wide spread disease or pandemics (including the COVID-19 pandemic), acts of war or terrorism or other adverse external events; potential impairment to the goodwill we recorded in connection with our past acquisition; changes to U.S. or state tax laws, regulations and guidance, including recent proposals to increase the federal corporate tax rate; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission.

​

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

​ Page 12 of 19

​ Bridgewater Bancshares, Inc. and Subsidiaries Consolidated Balance Sheets

(dollars in thousands, except share data)

​

​	​	​	​	​	​	​	​	​	​
​	​	September 30,		​	December 31,		​	September 30,
​	****	2021		****	2020		****	2020
​	​	(Unaudited)		​	​	​	​	(Unaudited)
ASSETS	​	​	​	​	​	​	​	​	​
Cash and Cash Equivalents	​	$	189,502	​	$	160,675	​	$	91,510
Bank-Owned Certificates of Deposit	​		1,877	​		2,860	​		2,862
Securities Available for Sale, at Fair Value	​		413,149	​		390,629	​		373,955
Loans, Net of Allowance for Loan Losses of $38,901 at September 30, 2021 (unaudited), $34,841 at December 31, 2020 and $31,381 at September 30, 2020 (unaudited)	​	​	2,662,912	​		2,282,436	​		2,217,480
Federal Home Loan Bank (FHLB) Stock, at Cost	​		5,442	​		5,027	​		7,817
Premises and Equipment, Net	​		49,803	​		50,987	​		48,885
Accrued Interest	​		8,550	​		9,172	​		9,647
Goodwill	​		2,626	​		2,626	​		2,626
Other Intangible Assets, Net	​		527	​		670	​		718
Other Assets	​		54,737	​		22,263	​		19,064
Total Assets	​	$	3,389,125	​	$	2,927,345	​	$	2,774,564
​	​	​	​	​	​	​	​	​	​
LIABILITIES AND EQUITY	​			​			​
LIABILITIES	​			​			​
Deposits:	​			​			​
Noninterest Bearing	​	$	846,490	​	$	671,903	​	$	685,773
Interest Bearing	​		2,007,667	​		1,829,733	​		1,587,271
Total Deposits	​		2,854,157	​		2,501,636	​		2,273,044
Notes Payable	​		—	​		11,000	​		11,500
FHLB Advances	​		47,500	​		57,500	​		127,500
Subordinated Debentures, Net of Issuance Costs	​		92,153	​		73,739	​		73,665
Accrued Interest Payable	​		1,656	​		1,615	​		2,082
Other Liabilities	​		25,856	​		16,450	​		21,341
Total Liabilities	​		3,021,322	​		2,661,940	​		2,509,132
​	​	​	​	​	​	​	​	​	​
SHAREHOLDERS' EQUITY	​			​			​
Preferred Stock- $0.01 par value; Authorized 10,000,000	​	​	​	​	​	​	​	​	​
Preferred Stock - Issued and Outstanding 2,760,000 Series A shares ($25 liquidation preference) at September 30, 2021 (unaudited), -0- at December 31, 2020 and -0- at September 30, 2020 (unaudited)	​	​	66,515	​		—	​		—
Common Stock- $0.01 par value; Authorized 75,000,000	​		​	​			​		​
Common Stock - Issued and Outstanding 28,066,822 at September 30, 2021 (unaudited), 28,143,493 at December 31, 2020 and 28,710,775 at September 30, 2020 (unaudited)	​	​	281	​		281	​		287
Additional Paid-In Capital	​		103,471	​		103,714	​		110,010
Retained Earnings	​		188,004	​		154,831	​		149,852
Accumulated Other Comprehensive Income	​		9,532	​		6,579	​		5,283
Total Shareholders' Equity	​		367,803	​		265,405	​		265,432
Total Liabilities and Equity	​	$	3,389,125	​	$	2,927,345	​	$	2,774,564

​

​ Page 13 of 19

​ Bridgewater Bancshares, Inc. and SubsidiariesConsolidated Statements of Income

(dollars in thousands, except per share data)

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended								​	Nine Months Ended
​	​	September 30,		​	June 30,		​	September 30,		​	September 30,		​	September 30,
​	****	2021		****	2021		****	2020		****	2021		****	2020
​	​	(Unaudited)		​	(Unaudited)		​	(Unaudited)		​	(Unaudited)		​	(Unaudited)
INTEREST INCOME		​			​	​		​			​			​
Loans, Including Fees	​	$	31,049	​	$	28,748	​	$	26,224	​	$	87,705	​	$	77,250
Investment Securities	​		2,333	​		2,312	​		2,100	​		7,065	​		6,387
Other	​		135	​		87	​		169	​		334	​		490
Total Interest Income	​		33,517	​		31,147	​		28,493	​		95,104	​		84,127
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
INTEREST EXPENSE	​		​	​		​	​		​	​		​	​		​
Deposits	​		3,417	​		3,513	​		4,840	​		10,601	​	​	15,734
Notes Payable	​		—	​		—	​		108	​		61	​	​	334
FHLB Advances	​		213	​		228	​		748	​		669	​	​	2,839
Subordinated Debentures	​		1,214	​		1,112	​		1,118	​		3,411	​	​	1,990
Federal Funds Purchased	​		—	​		6	​		—	​		6	​	​	107
Total Interest Expense	​		4,844	​		4,859	​		6,814	​		14,748	​		21,004
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
NET INTEREST INCOME	​		28,673	​		26,288	​		21,679	​		80,356	​		63,123
Provision for Loan Losses	​		1,300	​		1,600	​		3,750	​		4,000	​	​	8,850
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
NET INTEREST INCOME AFTER	​			​			​			​			​
PROVISION FOR LOAN LOSSES	​		27,373	​		24,688	​		17,929	​		76,356	​		54,273
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
NONINTEREST INCOME	​			​			​			​			​
Customer Service Fees	​		268	​		231	​	​	200	​		733	​	​	575
Net Gain on Sales of Available for Sale Securities	​		48	​		702	​	​	109	​		750	​	​	1,473
Other Income	​		1,094	​		670	​	​	848	​		2,538	​	​	2,805
Total Noninterest Income	​		1,410	​		1,603	​		1,157	​		4,021	​		4,853
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
NONINTEREST EXPENSE	​			​			​			​			​
Salaries and Employee Benefits	​		8,309	​		7,512	​	​	6,550	​		22,923	​	​	19,352
Occupancy and Equipment	​		942	​		980	​	​	894	​		2,977	​	​	2,279
Other Expense	​		3,985	​		2,985	​	​	2,228	​		9,736	​	​	8,498
Total Noninterest Expense	​		13,236	​		11,477	​		9,672	​		35,636	​		30,129
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
INCOME BEFORE INCOME TAXES	​		15,547	​		14,814	​		9,414	​		44,741	​	​	28,997
Provision for Income Taxes	​		4,038	​		3,821	​	​	2,240	​		11,568	​	​	6,782
NET INCOME	​	$	11,509	​	$	10,993	​	$	7,174	​	$	33,173	​	$	22,215
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
EARNINGS PER SHARE	​			​	​		​			​			​		​
Basic	​	$	0.41	​	$	0.39	​	$	0.25	​	$	1.18	​	$	0.77
Diluted	​	​	0.40	​	​	0.38	​	​	0.25	​	​	1.14	​	​	0.76

​

​ Page 14 of 19

​ ​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	For the Nine Months Ended															****
​	​	September 30, 2021							​	September 30, 2020							****
​	​	Average		​	Interest		​	Yield/	​	Average		​	Interest		​	Yield/	​
​	****	Balance		****	& Fees		****	Rate	****	Balance		****	& Fees		****	Rate	****
(dollars in thousands)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest Earning Assets:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Cash Investments	​	$	127,283	​	$	134	​	0.14	%	$	80,186	​	$	138	​	0.23	%
Investment Securities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Taxable Investment Securities	​		310,078	​		5,122	​	2.21	​		216,332	​		4,080	​	2.52	​
Tax-Exempt Investment Securities^(1)^	​		76,564	​		2,460	​	4.30	​		89,674	​		2,920	​	4.35	​
Total Investment Securities	​		386,642	​		7,582	​	2.62	​		306,006	​		7,000	​	3.06	​
Paycheck Protection Program Loans ^(2)^	​		124,466	​	​	5,384	​	5.78	​		107,541	​		2,046	​	2.54	​
Loans ^(1)(2)^	​	​	2,402,844	​	​	82,433	​	4.59	​	​	1,997,553	​	​	75,301	​	5.04	​
Total Loans	​		2,527,310	​		87,817	​	4.65	​		2,105,094	​		77,347	​	4.91	​
Federal Home Loan Bank Stock	​		5,658	​	​	200	​	4.71	​		9,541	​		352	​	4.93	​
Total Interest Earning Assets	​		3,046,893	​		95,733	​	4.20	%		2,500,827	​		84,837	​	4.53	%
Noninterest Earning Assets	​	​	70,968	​	​	​	​	​	​	​	50,118	​	​	​	​	​	​
Total Assets	​	$	3,117,861	​	​	​	​	​	​	$	2,550,945	​	​	​	​	​	​
Interest Bearing Liabilities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Deposits:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest Bearing Transaction Deposits	​	$	422,000	​	$	1,504	​	0.48	%	$	275,303	​	$	1,207	​	0.58	%
Savings and Money Market Deposits	​		763,646	​	​	2,853	​	0.50	​		518,648	​		4,338	​	1.12	​
Time Deposits	​		331,664	​	​	3,269	​	1.32	​		378,133	​		6,199	​	2.19	​
Brokered Deposits	​		407,680	​	​	2,975	​	0.98	​		319,615	​		3,990	​	1.67	​
Total Interest Bearing Deposits	​		1,924,990	​		10,601	​	0.74	​		1,491,699	​		15,734	​	1.41	​
Federal Funds Purchased	​		3,311	​	​	6	​	0.24	​		8,302	​		107	​	1.73	​
Notes Payable	​		2,216	​	​	61	​	3.66	​		12,000	​		334	​	3.72	​
FHLB Advances	​		56,364	​	​	669	​	1.59	​		165,088	​		2,839	​	2.30	​
Subordinated Debentures	​		79,723	​	​	3,411	​	5.72	​		43,318	​		1,990	​	6.14	​
Total Interest Bearing Liabilities	​		2,066,604	​		14,748	​	0.95	%		1,720,407	​		21,004	​	1.63	%
Noninterest Bearing Liabilities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Noninterest Bearing Transaction Deposits	​		731,269	​	​	​	​	​	​		554,513	​	​	​	​	​	​
Other Noninterest Bearing Liabilities	​	​	23,228	​	​	​	​	​	​	​	19,632	​	​	​	​	​	​
Total Noninterest Bearing Liabilities	​		754,497	​	​	​	​	​	​		574,145	​	​	​	​	​	​
Shareholders' Equity	​	​	296,760	​	​	​	​	​	​		256,393	​	​	​	​	​	​
Total Liabilities and Shareholders' Equity	​	$	3,117,861	​	​	​	​	​	​	$	2,550,945	​	​	​	​	​	​
Net Interest Income / Interest Rate Spread	​	​	​	​		80,985	​	3.25	%	​	​	​		63,833	​	2.90	%
Net Interest Margin ^(3)^	​	​	​	​	​	​	​	3.55	%	​	​	​	​	​	​	3.41	%
Taxable Equivalent Adjustment:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Tax-Exempt Investment Securities and Loans	​	​	​	​		(629)	​	​	​	​	​	​		(710)	​	​	​
Net Interest Income	​	​	​	​	$	80,356	​	​	​	​	​	​	$	63,123	​	​	​

---

(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 15 of 19

​ Non-GAAP Financial Measures

(dollars in thousands) (unaudited)

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	For the Three Months Ended								​	For the Nine Months Ended					​
​	​	September 30,		​	June 30,		​	September 30,		​	September 30,		​	September 30,		​
​	****	2021		****	2021		​	2020		​	2021		****	2020		****
Pre-Provision Net Revenue	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Noninterest Income		$	1,410	​	$	1,603	​	$	1,157	​	$	4,021	​	$	4,853	​
Less: Gain on sales of Securities	​	​	(48)	​	​	(702)	​	​	(109)	​	​	(750)	​	​	(1,473)	​
Total Operating Noninterest Income	​	​	1,362	​	​	901	​	​	1,048	​	​	3,271	​	​	3,380	​
Plus: Net Interest Income	​	​	28,673	​	​	26,288	​	​	21,679	​	​	80,356	​	​	63,123	​
Net Operating Revenue	​	$	30,035	​	$	27,189	​	$	22,727	​	$	83,627	​	$	66,503	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Noninterest Expense	​	$	13,236	​	$	11,477	​	$	9,672	​	$	35,636	​	$	30,129	​
Less: Amortization of Tax Credit Investments	​	​	(152)	​	​	(140)	​	​	(145)	​	​	(410)	​	​	(592)	​
Less: Debt Prepayment Fees	​	​	(582)	​	​	—	​	​	—	​	​	(582)	​	​	(1,430)	​
Total Operating Noninterest Expense	​	$	12,502	​	$	11,337	​	$	9,527	​	$	34,644	​	$	28,107	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pre-Provision Net Revenue	​	$	17,533	​	$	15,852	​	$	13,200	​	$	48,983	​	$	38,396	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Plus:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Non-Operating Revenue Adjustments	​	​	48	​	​	702	​	​	109	​	​	750	​	​	1,473	​
Less:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Provision for Loan Losses	​	​	1,300	​	​	1,600	​	​	3,750	​	​	4,000	​	​	8,850	​
Non-Operating Expense Adjustments	​	​	734	​	​	140	​	​	145	​	​	992	​	​	2,022	​
Provision for Income Taxes	​	​	4,038	​	​	3,821	​	​	2,240	​	​	11,568	​	​	6,782	​
Net Income	​	$	11,509	​	$	10,993	​	$	7,174	​	$	33,173	​	$	22,215	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Average Assets	​	$	3,332,301	​	$	3,076,712	​	$	2,711,755	​	$	3,117,861	​	$	2,550,945	​
Pre-Provision Net Revenue Return on Average Assets	​	​	2.09	%	​	2.07	%	​	1.94	%	​	2.10	%	​	2.01	%

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	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,		​
​	****	2021		****	2021		****	2020		****	****	2021		****	2020		****
Core Net Interest Margin	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net Interest Income (Tax-Equivalent Basis)		$	28,880	​	$	26,495	​	$	21,898	​		$	80,985	​	$	63,833	​
Less: Loan Fees	​	​	(1,487)	​	​	(1,023)	​	​	(1,198)	​	​	​	(3,712)	​	​	(3,769)	​
Less: PPP Interest and Fees	​	​	(1,753)	​	​	(1,767)	​	​	(1,173)	​	​	​	(5,384)	​	​	(2,046)	​
Core Net Interest Income	​	$	25,640	​	$	23,705	​	$	19,527	​	​	$	71,889	​	$	58,018	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Average Interest Earning Assets	​	​	3,234,301	​	​	3,019,437	​	​	2,655,882	​	​	​	3,046,893	​	​	2,500,827	​
Less: Average PPP Loans	​	​	(76,006)	​	​	(149,312)	​	​	(181,397)	​	​	​	(124,466)	​	​	(107,541)	​
Core Average Interest Earning Assets	​	$	3,158,295	​	$	2,870,125	​	$	2,474,485	​	​	$	2,922,427	​	$	2,393,286	​
Core Net Interest Margin	​	​	3.22	%		3.31	%		3.14	%	​		3.29	%		3.24	%

Page 16 of 19

​ Non-GAAP Financial Measures

(dollars in thousands) (unaudited)

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	For the Three Months Ended								​	​	For the Nine Months Ended					​
​	​	September 30,		​	June 30,		​	September 30,		​	​	September 30,		​	September 30,		​
​	****	2021		****	2021		****	2020		****	****	2021		****	2020		****
Efficiency Ratio	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Noninterest Expense		$	13,236	​	$	11,477	​	$	9,672	​		$	35,636	​	$	30,129	​
Less: Amortization of Intangible Assets	​	​	(48)	​	​	(47)	​	​	(48)	​	​	​	(143)	​	​	(143)	​
Adjusted Noninterest Expense	​	$	13,188	​	$	11,430	​	$	9,624	​	​	$	35,493	​	$	29,986	​
Net Interest Income	​	​	28,673	​	​	26,288	​	​	21,679	​	​	​	80,356	​	​	63,123	​
Noninterest Income	​	​	1,410	​	​	1,603	​	​	1,157	​	​	​	4,021	​	​	4,853	​
Less: Gain on Sales of Securities	​	​	(48)	​	​	(702)	​	​	(109)	​	​	​	(750)	​	​	(1,473)	​
Adjusted Operating Revenue	​	$	30,035	​	$	27,189	​	$	22,727	​	​	$	83,627	​	$	66,503	​
Efficiency Ratio	​		43.9	%		42.0	%		42.3	%	​		42.4	%		45.1	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Adjusted Efficiency Ratio	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Noninterest Expense	​	$	13,236	​	$	11,477	​	$	9,672	​	​	$	35,636	​	$	30,129	​
Less: Amortization of Tax Credit Investments	​	​	(152)	​	​	(140)	​	​	(145)	​	​	​	(410)	​	​	(592)	​
Less: Debt Prepayment Fees	​	​	(582)	​	​	—	​	​	—	​	​	​	(582)	​	​	(1,430)	​
Less: Amortization of Intangible Assets	​	​	(48)	​	​	(47)	​	​	(48)	​	​	​	(143)	​	​	(143)	​
Adjusted Noninterest Expense	​	$	12,454	​	$	11,290	​	$	9,479	​	​	$	34,501	​	$	27,964	​
Net Interest Income	​	​	28,673	​	​	26,288	​	​	21,679	​	​	​	80,356	​	​	63,123	​
Noninterest Income	​	​	1,410	​	​	1,603	​	​	1,157	​	​	​	4,021	​	​	4,853	​
Less: Gain on Sales of Securities	​	​	(48)	​	​	(702)	​	​	(109)	​	​	​	(750)	​	​	(1,473)	​
Adjusted Operating Revenue	​	$	30,035	​	$	27,189	​	$	22,727	​	​	$	83,627	​	$	66,503	​
Adjusted Efficiency Ratio	​		41.5	%		41.5	%		41.7	%	​		41.3	%		42.0	%

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	For the Three Months Ended								​	​	For the Nine Months Ended					​
​	​	September 30,		​	June 30,		​	September 30,		​	​	September 30,		​	September 30,		​
​	****	2021		****	2021		****	2020		****	****	2021		****	2020		****
Adjusted Noninterest Expense to Average Assets (Annualized)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Noninterest Expense		$	13,236	​	$	11,477	​	$	9,672	​		$	35,636	​	$	30,129	​
Less: Amortization of Tax Credit Investments	​	​	(152)	​	​	(140)	​	​	(145)	​	​	​	(410)	​	​	(592)	​
Less: Debt Prepayment Fees	​	​	(582)	​	​	—	​	​	—	​	​	​	(582)	​	​	(1,430)	​
Adjusted Noninterest Expense	​	$	12,502	​	$	11,337	​	$	9,527	​	​	$	34,644	​	$	28,107	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Average Assets	​	$	3,332,301	​	$	3,076,712	​	$	2,711,755	​	​	$	3,117,861	​	$	2,550,945	​
Adjusted Noninterest Expense to Average Assets (Annualized)	​		1.49	%		1.48	%		1.40	%	​		1.49	%		1.47	%

​ Page 17 of 19

​ Non-GAAP Financial Measures

(dollars in thousands) (unaudited)

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	As of and for the Three Months Ended								​	​	As of and for the Nine Months Ended					​
​	​	September 30,		​	June 30,		​	September 30,		​	​	September 30,		​	September 30,		​
​	​	2021		​	2021		​	2020		​	​	2021		​	2020		​
Tangible Common Equity and Tangible Common Equity/Tangible Assets	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Shareholders' Equity	​	$	367,803	​	$	290,830	​	$	265,432	​	​	​	​	​	​	​	​
Less: Preferred Stock	​	​	(66,515)	​	​	—	​	​	—	​	​	​	​	​	​	​	​
Total Common Shareholders' Equity	​	​	301,288	​	​	290,830	​	​	265,432	​	​	​	​	​	​	​	​
Less: Intangible Assets	​	​	(3,153)	​	​	(3,200)	​	​	(3,344)	​	​	​	​	​	​	​	​
Tangible Common Equity	​	$	298,135	​	$	287,630	​	$	262,088	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Assets	​	$	3,389,125	​	$	3,162,612	​	$	2,774,564	​	​	​	​	​	​	​	​
Less: Intangible Assets	​	​	(3,153)	​	​	(3,200)	​	​	(3,344)	​	​	​	​	​	​	​	​
Tangible Assets	​	$	3,385,972	​	$	3,159,412	​	$	2,771,220	​	​	​	​	​	​	​	​
Tangible Common Equity/Tangible Assets	​		8.81	%		9.10	%		9.46	%	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Tangible Book Value Per Share	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Book Value Per Common Share	​	$	10.73	​	$	10.33	​	$	9.25	​	​	​	​	​	​	​	​
Less: Effects of Intangible Assets	​	​	(0.11)	​	​	(0.11)	​	​	(0.12)	​	​	​	​	​	​	​	​
Tangible Book Value Per Common Share	​	$	10.62	​	$	10.22	​	$	9.13	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Return on Average Tangible Common Equity	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net Income	​	$	11,509	​	$	10,993	​	$	7,174	​	​	$	33,173	​	$	22,215	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Average Shareholders' Equity	​	$	330,604	​	$	286,311	​	$	263,195	​	​	$	296,760	​	$	256,393	​
Less: Average Preferred Stock	​	​	(32,332)	​	​	—	​	​	—	​	​	​	(10,896)	​	​	—	​
Average Common Equity	​	​	298,272	​	​	286,311	​	​	263,195	​	​	​	285,864	​	​	256,393	​
Less: Effects of Average Intangible Assets	​	​	(3,180)	​	​	(3,228)	​	​	(3,371)	​	​	​	(3,227)	​	​	(3,418)	​
Average Tangible Common Equity	​	$	295,092	​	$	283,083	​	$	259,824	​	​	$	282,637	​	$	252,975	​
Return on Average Tangible Common Equity	​		15.47	%		15.58	%		10.98	%	​		15.69	%		11.73	%

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended
​	​	September 30,		​	June 30,		​	March 31,		​	December 31,		​	September 30,
​	​	2021		​	2021		​	2021		​	2020		​	2020
Tangible Common Equity	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Shareholders' Equity	​	$	367,803	​	$	290,830	​	$	279,171	​	$	265,405	​	$	265,432
Less: Preferred Stock	​	​	(66,515)	​	​	—	​	​	—	​	​	—	​	​	—
Common Shareholders' Equity	​	​	301,288	​	​	290,830	​	​	279,171	​	​	265,405	​	​	265,432
Less: Intangible Assets	​	​	(3,153)	​	​	(3,200)	​	​	(3,248)	​	​	(3,296)	​	​	(3,344)
Tangible Common Equity	​	$	298,135	​	$	287,630	​	$	275,923	​	$	262,109	​	$	262,088

Page 18 of 19

​ ​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	As of and for the Three Months Ended										​	​	As of and for the Nine Months Ended						​
​	​	September 30, 2021		​	​	June 30, 2021		​	​	September 30, 2020		​	​	September 30, 2021		​	​	September 30, 2020		​
Adjusted Diluted Earnings Per Common Share	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net Income	​	$	11,509	​	​	$	10,993	​	​	$	7,174	​	​	$	33,173	​	​	$	22,215	​
Add: Debt Prepayment Fees	​	​	582	​	​	​	—	​	​	​	—	​	​	​	582	​	​	​	1,430	​
Less: Tax Impact	​	​	(151)	​	​	​	—	​	​	​	—	​	​	​	(151)	​	​	​	(335)	​
Net Income, Excluding Impact of Debt Prepayment Fees	​	$	11,940	​	​	$	10,993	​	​	$	7,174	​	​	$	33,604	​	​	$	23,310	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Diluted Weighted Average Shares Outstanding	​	​	29,110,547	​	​	​	29,128,181	​	​	​	29,174,601	​	​	​	29,077,850	​	​	​	29,300,763	​
Adjusted Diluted Earnings Per Common Share	​	$	0.41	​	​	$	0.38	​	​	$	0.25	​	​	$	1.16	​	​	$	0.80	​

​ Page 19 of 19

Exhibit 99.2

2<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<br>statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company.<br>These statements are often, but not always, identified by words such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”,<br>“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-<br>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<br>assumptions regarding our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements<br>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<br>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.<br>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<br>following: the negative effects of the COVID-19 pandemic, including its effects on the economic environment, our clients and our operations, including due to supply chain disruptions, as<br>well as any changes to federal, state or local government laws, regulations or orders in connection with the pandemic; loan concentrations in our portfolio; the overall health of the local<br>and national real estate market; our ability to successfully manage credit risk; business and economic conditions generally and in the financial services industry, nationally and within our<br>market area; our ability to maintain an adequate level of allowance for loan losses; new or revised accounting standards, including as a result of the future implementation of the<br>Current Expected Credit Loss standard; the concentration of large loans to certain borrowers; the concentration of large deposits from certain clients; our ability to successfully manage<br>liquidity risk; our dependence on non-core funding sources and our cost of funds; our ability to raise additional capital to implement our business plan; our ability to implement our growth<br>strategy and manage costs effectively; developments and uncertainty related to the future use and availability of some reference rates, such as the London Interbank Offered Rate, as well<br>as other alternative reference rates; the composition of our senior leadership team and our ability to attract and retain key personnel; the occurrence of fraudulent activity, breaches or<br>failures of our information security controls or cybersecurity-related incidents; interruptions involving our information technology and telecommunications systems or third-party<br>servicers; competition in the financial services industry; the effectiveness of our risk management framework; the commencement and outcome of litigation and other legal proceedings<br>and regulatory actions against us; the impact of recent and future legislative and regulatory changes, including changes to federal and state corporate tax rates; interest rate risk;<br>fluctuations in the values of the securities held in our securities portfolio; the imposition of tariffs or other governmental policies impacting the value of products produced by our<br>commercial borrowers; severe weather, natural disasters, wide spread disease or pandemics (including the COVID-19 pandemic), acts of war or terrorism or other adverse external events;<br>potential impairment to the goodwill we recorded in connection with our past acquisition; changes to U.S. or state tax laws, regulations and guidance, including recent proposals to<br>increase the federal corporate tax rate; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission.<br>Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no<br>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<br>or otherwise. Certain of the information contained in this presentation is derived from information provided by industry sources. Although we believe that such information is accurate and<br>that the sources from which it has been obtained are reliable, we cannot guarantee the accuracy of, and 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<br>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<br>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<br>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.<br>Reconciliations of non-GAAP disclosures to the comparable GAAP measures are provided in this presentation.<br>Disclaimer
1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>3<br>$0.40<br>Reported<br>• Gross loan balances up $117.8 million, or 18.0% annualized from 2Q21 (25.9% ex. PPP)<br>• Deposit balances up $133.3 million, or 19.4% annualized from 2Q21<br>• Cash build of $97.3 million, primarily due to 3Q21 sub debt and preferred stock offerings<br>Diluted<br>EPS<br>Efficiency<br>Ratio1<br>Return on Avg. Tangible<br>Common Equity1<br>Return on<br>Average Assets<br>• Adjusted efficiency ratio1 of 41.5%, in-line with 2Q21<br>• Total revenue of $30.1 million, up 7.9% from 2Q21, driven by $2.4 million of net interest income growth<br>• Noninterest expense up $1.8 million, or 15.3% from 2Q21 (adjusted noninterest expense1 up 10.3%)<br>• Annualized net charge-offs to average loans of 0.00%<br>• Growth-driven provision of $1.3 million, bringing allowance to total loans to 1.46% (ex. PPP)<br>• Nonperforming assets to total assets of 0.02%, in-line with 2Q21<br>• Completed $30 million subordinated debt and $69 million preferred stock offerings<br>• Tangible common equity ratio1 of 8.81%, down 29 bps from 2Q21<br>• Total risk-based capital ratio of 15.93%, up 244 bps from 2Q21<br>Robust Balance<br>Sheet Growth<br>Continues<br>Highly Efficient<br>Operating<br>Performance<br>Superb<br>Asset Quality<br>Enhanced<br>Capital Position<br>3Q21 Earnings Highlights<br>PPNR Return on Average<br>Assets1<br>$0.41<br>Adjusted1<br>1.37% 2.09% 15.47% 41.5%<br>Adjusted1
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PPNR ROA1<br>4<br>Strong Profitability and Revenue Generation<br>Strong PPNR Trends<br>1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>Dollars in thousands<br>Consistent Revenue Growth<br>$21,679<br>$24,841 $25,395 $26,288<br>$28,673<br>$1,157<br>$986 $1,008<br>$1,603<br>$1,410<br>$22,836<br>$25,827 $26,403<br>$27,891<br>$30,083<br>3Q20 4Q20 1Q21 2Q21 3Q21<br>$13,200<br>$16,298 $15,598 $15,852<br>$17,533<br>$7,174<br>$4,979<br>$10,671 $10,993 $11,509<br>1.94%<br>2.30%<br>2.15% 2.07% 2.09%<br>1.05%<br>0.70%<br>1.47% 1.43% 1.37%<br>3Q20 4Q20 1Q21 2Q21 3Q21<br>Net Income PPNR1 ROA Noninterest Income Net Interest Income
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$19,308 $21,230 $22,869 $23,498 $25,433<br>$1,173<br>$2,097<br>$1,864 $1,767<br>$1,753<br>$1,198<br>$1,514<br>$1,202 $1,023<br>$1,487<br>$21,679<br>$24,841<br>$25,935 $26,288<br>$28,673<br>3.28%<br>3.61% 3.60% 3.52% 3.54%<br>3.14%<br>3.29% 3.34% 3.31% 3.22%<br>3Q20 4Q20 1Q21 2Q21 3Q21<br>Core Net Interest Margin1,2<br>Net Interest Margin1<br>5<br>1 Amounts calculated on a tax-equivalent basis using statutory federal tax rate of 21%<br>2 Excludes loan fees and PPP loan balances, interest and fees; represents a Non-GAAP financial measure, see Appendix for Non-GAAP reconciliation<br>3 Impact of average cash balances from subordinated debt and preferred stock issuances in 3Q21<br>4 Cash excluding average balances from subordinated debt and preferred stock issuances in 3Q21<br>Dollars in thousands<br>• 32.3% YoY growth in net interest income<br>• Net interest income (ex. interest income on<br>loan fees and PPP loans) increased 8.2%<br>from 2Q21, despite a 9 bp decline in core<br>net interest margin<br>• Estimated $1.9 million of PPP fees yet to be<br>recognized<br>Net Interest Income Momentum Continues<br>With Robust Loan Growth<br>Net Interest Income (ex. interest income on<br>loan fees and PPP loans)<br>Net Interest Margin Drivers<br>9 bp decline in core NIM2 primarily due to<br>6 bp impact of excess cash from<br>3Q21 capital offerings<br>Interest Income on PPP loans<br>Interest Income on loan fees<br>Net Interest Income and Net Interest Margin<br>3<br>4
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$2,207 $2,301 $2,390 $2,534 $2,655<br>4.73% 4.89% 4.74% 4.56% 4.65%<br>4.69% 4.59% 4.50% 4.37% 4.28%<br>3Q20 4Q20 1Q21 2Q21 3Q21<br>$1,597 $1,687 $1,836 $1,898 $2,039<br>1.21%<br>0.96%<br>0.81% 0.74% 0.66%<br>3Q20 4Q20 1Q21 2Q21 3Q21<br>Loan Yield (ex. Loan Fees and PPP)2<br>6<br>1 Excludes loan fees and PPP<br>2 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>Dollars in millions<br>Spot<br>Rate<br>2.54%<br>Spot<br>Rate<br>4.17%1<br>Spot<br>Rate<br>0.58%<br>Spot<br>Rate<br>0.56%<br>Steady Investment in Securities Portfolio Market-Related Loan Yield Pressure as Balances Grow<br>Improving Deposit Mix Resulting in Lower Deposit Costs Lower Overall Funding Costs<br>Net Interest Income Components<br>$339 $371 $383 $391 $386<br>2.68% 2.70% 2.76%<br>2.55% 2.56%<br>3Q20 4Q20 1Q21 2Q21 3Q21<br>$1,597 $1,688 $1,836 $1,898 $2,039<br>$615 $654 $676 $732 $784 $215 $188 $138 $141 $145 $2,427 $2,530 $2,650 $2,771 $2,968<br>1.12%<br>0.92% 0.77% 0.70% 0.65%<br>3Q20 4Q20 1Q21 2Q21 3Q21<br>Average Interest-Bearing Deposits Average Noninterest-Bearing Deposits<br>Average Borrowings Cost of Liability Funding<br>Average Investments Investment Yield Average Loans Loan Yield<br>Average Interest-Bearing Deposits Cost of Interest-Bearing Deposits
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$6,550 $6,216 $7,102 $7,512 $8,309<br>$894 $979<br>$1,055 $980<br>$942<br>$652 $690<br>$753 $849<br>$923<br>$1,576 $1,760<br>$2,013<br>$2,136<br>$2,480<br>$5,613<br>$582<br>$9,672<br>$15,258<br>$10,923<br>$11,477<br>$13,236<br>3Q20 4Q20 1Q21 2Q21 3Q21<br>1.40% 1.34% 1.49% 1.48% 1.49%<br>0.02%<br>0.82%<br>0.02% 0.02% 0.09% 1.42%<br>2.16%<br>1.51% 1.50% 1.58%<br>42.3%<br>59.0%<br>41.2% 42.0% 43.9%<br>41.7% 36.6% 40.7% 41.5% 41.5%<br>3Q20 4Q20 1Q21 2Q21 3Q21<br>Adjusted NIE / Avg. Assets2<br>Adjusted Efficiency Ratio2<br>Adjustment Factors / Avg. Assets2<br>Efficiency Ratio2<br>7<br>Adjusted Efficiency Ratio Consistently in the Low 40% Range Continued Investments to Support Balance Sheet Growth<br>1 2Q21 median efficiency ratio for publicly-traded banks with total assets between $1 billion and $10 billion (Source: S&P Global Market Intelligence)<br>2 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>3 Includes FHLB advance prepayment fees in 4Q20 and debt extinguishment costs related to accelerated sub debt redemption in 3Q21<br>Dollars in thousands<br>Efficiency Ratio Among Lowest in Industry<br>Industry median efficiency ratio of 60%1 Increase in 3Q21 personnel expenses driven by impact<br>of strategic new hires to support growth<br>Occupancy Personnel<br>Other Technology<br>Non-Core Items3
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Dollars in millions<br>8<br>• 27.9% YoY loan growth, excluding<br>PPP loans<br>• 3Q21 gross loans grew $162.7<br>million, or 25.9% annualized,<br>excluding PPP loans<br>• Expect near-term annualized loan<br>growth (ex. PPP) in the high teen<br>percent range<br>• Strong brand and service model in the Twin<br>Cities market<br>• M&A-related market disruption resulting in<br>client and banker acquisition opportunities<br>• Expansion of talented lending teams<br>• PPP-related client acquisition opportunities<br>Robust Loan Growth Continues<br>$2,077 $2,188 $2,263<br>$2,495<br>$2,658<br>$182<br>$138<br>$163<br>$99<br>$54<br>$2,259 $2,326<br>$2,426<br>$2,594<br>$2,712<br>3Q20 4Q20 1Q21 2Q21 3Q21<br>BWB Loan Growth Catalysts<br>PPP Loans Gross Loans (ex. PPP)
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9<br>Dollars in millions<br>• Despite payoffs and paydowns of $164 million and a net PPP balance reduction<br>of $45 million in 3Q21, gross loan portfolio grew $118 million from 2Q21<br>• Loan pipeline remains strong and diversified among various asset classes<br>A Proven Loan Growth Engine<br>Down 8%<br>compared to 2Q21<br>Up 31%<br>compared to 2Q21<br>Decrease Increase Total
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CRE NOO<br>29.0%<br>Multifamily<br>31.9%<br>C&D<br>9.5%<br>1-4 Family<br>10.7%<br>CRE OO<br>3.8%<br>C&I<br>12.9%<br>PPP<br>2.0%<br>Consumer &<br>Other 0.2%<br>10<br>Dollars in millions<br>Loan Portfolio Composition<br>Loan Mix<br>by Type<br>$2.71<br>Billion<br>3Q21 Loan Growth by Type (vs. 2Q21)<br>Well-Diversified Loan Portfolio<br>• 3Q21 loan growth across all commercial portfolios, led by multifamily<br>• Multifamily continues to be a key growth portfolio due to segment expertise and lower risk<br>characteristics<br>• 59% fixed rate, 22% variable rate, and 19% adjustable rate<br>• Loan modifications of $35 million at September 30, 2021, or 1.3% of gross loans (ex. PPP)<br>$(45)<br>$(1)<br>$6<br>$13<br>$14<br>$28<br>$29<br>$75 Multifamily<br>C&I<br>CRE Nonowner Occupied<br>CRE Owner Occupied<br>1-4 Family<br>Construction & Development<br>Consumer & Other<br>PPP
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$686 $672 $713 $758 $846<br>$322 $366<br>$433 $432<br>$489<br>$498<br>$658<br>$792 $761<br>$792 $364<br>$354<br>$345 $322<br>$310<br>$403<br>$452<br>$356 $447<br>$417<br>$2,273<br>$2,502<br>$2,639<br>$2,721<br>$2,854<br>3Q20 4Q20 1Q21 2Q21 3Q21<br>11<br>• 23.4% YoY growth in noninterest-<br>bearing deposits<br>• Robust deposit inflows reflect both<br>successful new client and banker<br>acquisition initiatives and pandemic-<br>related accumulation of liquidity by<br>existing clients<br>• Core deposits1 were 83% of total<br>deposits (up from 77% at 3Q20)<br>• Cost of total deposits of 0.48%, down<br>from 0.54% in 2Q21<br>• $146 million in time deposits<br>maturing over the next five quarters at<br>a blended cost of 1.46%<br>• Expect deposit growth to continue to<br>fund loan growth going forward<br>1 Total deposits less brokered deposits and certificates of deposit greater than $250,000<br>Dollars in millions<br>Interest-Bearing Transaction Noninterest-Bearing Transaction<br>Time Savings & Money Market<br>Brokered<br>Deposit Growth Keeping Pace<br>With Loan Growth
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$16,074 $15,164<br>$6,739 $7,195 $7,742<br>4.95% 4.54%<br>1.94% 1.99% 1.93%<br>3Q20 4Q20 1Q21 2Q21 3Q21<br>$2<br>$440<br>$(46) $(4) $(10)<br>0.00%<br>0.08%<br>(0.01)% 0.00% 0.00%<br>3Q20 4Q20 1Q21 2Q21 3Q21<br>$433<br>$775 $770 $761 $734<br>0.02% 0.03% 0.03% 0.02% 0.02%<br>3Q20 4Q20 1Q21 2Q21 3Q21<br>$31,381<br>$34,841 $35,987 $37,591 $38,901<br>1.51% 1.59% 1.59%<br>1.50% 1.46%<br>1.39%<br>1.50% 1.48% 1.45% 1.43%<br>3Q20 4Q20 1Q21 2Q21 3Q21<br>12<br>Asset Quality<br>Classified Assets Nonperforming Assets1<br>Allowance for Loan Losses Net Charge-Offs<br>Superb Asset Quality Despite COVID Impact<br>2020 increase due to two COVID-related relationships Consistently low NPA levels<br>Current reserves at appropriate levels Cumulative NCOs of $632K since 2017<br>¹ Nonaccrual loans, loans 90 days past due and foreclosed assets<br>Dollars in thousands<br>Classified Assets % of Bank Tier 1 Capital + ALLL NPAs % of Assets<br>ALLL % of Gross Loans % of Gross Loans (ex. PPP)<br>Net Charge-offs % of Average Loans (annualized)
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C&I,<br>37.2%<br>CRE NOO<br>Hotels,<br>23.3%<br>CRE NOO -<br>Senior<br>Housing,<br>15.8%<br>CRE NOO<br>Retail,<br>13.4%<br>CRE OO,<br>2.4% CRE NOO<br>Other,<br>6.9%<br>1-4<br>Family,<br>1.0%<br>C&I<br>15.5%<br>CRE NOO<br>Retail 46.4%<br>CRE NOO<br>Office<br>8.1%<br>CRE OO<br>10.9%<br>C&D<br>1.7%<br>1-4<br>Family<br>17.4%<br>$8<br>Million<br>13<br>Investor Real Estate Secured: CRE Nonowner Occupied (“NOO”)<br>Watch List<br>By Loan<br>Type<br>Classified<br>List By<br>Loan Type<br>$67<br>Million<br>Dollars in thousands<br>Watch List Characteristics<br>Loan Balance Outstanding $67,377<br>% of Total Loans, Gross 2.5%<br>Number of Loans 31<br>Average Loan Size $2,173<br>Classified List Characteristics<br>Loan Balance Outstanding $7,742<br>% of Total Loans, Gross 0.3%<br>Number of Loans 18<br>Average Loan Size $430<br>% of Bank Tier 1 Capital + ALLL 1.93%<br>Classified Assets Remain at Modest Levels<br>Majority of Watch and Classified loans are pandemic-related<br>Only 4 hotel relationships as of September 30, 2021; with 2 on Watch
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16.8% 18.4% 19.2% 15.4%<br>17.5%<br>15.5%<br>19.8%<br>22.3% 25.9%<br>24.4% $894<br>$1,121<br>$1,273 $1,305<br>$1,418<br>3Q20 4Q20 1Q21 2Q21 3Q21<br>9.83%<br>9.28% 9.11% 9.08%<br>10.70% 11.03%<br>10.35% 10.34%<br>9.67%<br>9.47%<br>15.45%<br>14.58% 14.46%<br>13.49%<br>15.93%<br>3Q20 4Q20 1Q21 2Q21 3Q21<br>14<br>Dollars in millions<br>On & Off-Balance Sheet Liquidity as % of Total Assets<br>Solid Capital and Liquidity Position<br>• Completed private placement of $30.0M of 3.25% Fixed-to-Floating Rate Subordinated Notes<br>• Completed public offering of $69.0M of 5.875% Non-Cumulative Perpetual Preferred Stock<br>• Repurchased $11.3M of $25.0M of 5.875% Fixed-to-Floating Rate Subordinated Notes issued in 2017<br>• Repurchased 126,507 shares of common stock ($2.0M) at a weighted average price of $16.11<br>• $12.5M remaining under the current share repurchase program<br>Focus on utilizing capital to support strong loan growth Investment portfolio completely unencumbered<br>at September 30, 2021<br>Off-Balance Sheet Liquidity as a % of Assets<br>On-Balance Sheet Liquidity as a % of Assets<br>Total Risk-Based Capital Ratio Common Equity Tier 1 Capital Ratio<br>Tier 1 Leverage Ratio<br>3Q21 Capital Actions<br>Consolidated Capital Ratios
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$262 $262<br>$276<br>$288<br>$298<br>9.46%<br>8.96% 8.99% 9.10%<br>8.81%<br>3Q20 4Q20 1Q21 2Q21 3Q21<br>Tangible Common Equity to Tangible Assets1<br>$4.53<br>$5.40<br>$7.22<br>$8.33<br>$9.31<br>$10.62<br>2016 2017 2018 2019 2020 3Q21<br>15<br>Strong Capital and Liquidity<br>Tangible Book Value Per Share1 Tangible Common Equity<br>1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>Dollars in millions, except per share data<br>Growing Tangible Book Value<br>Tangible Common Equity1
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Investor Highlights<br>Investor Highlights<br>Pre-eminent real estate bank in the Twin Cities market with a focus<br>on multifamily lending<br>Operational strategy focused on generating consistently profitable<br>organic growth<br>Superior profitability driven by a highly efficient business model<br>Very experienced and deep group of managers and business<br>producers<br>Primary operations in the growing Twin Cities market, with ample<br>opportunities from bank M&A disruption<br>Proactive risk management approach resulting in continued strong<br>asset quality, despite the pandemic<br>An unconventional culture that is attracting and retaining top talent<br>1<br>2<br>3<br>4<br>5<br>6<br>7<br>Core Values<br>Unconventional Responsive Dedicated Growth Accuracy<br>16
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18<br>This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of these<br>non-GAAP financial measures are provided below. The Company believes these non-GAAP financial measures provide useful information to both management and<br>investors to analyze and evaluate the Company’s financial performance. Because not all companies use the same calculations for these measures, the information<br>in this presentation may not be comparable to other similarly titled measures as calculated by other companies.<br>Dollars in thousands<br>Reconciliation of Non-GAAP Financial<br>Measures - Annual<br>Tangible Common Equity &<br>Tangible Common Equity/Tangible<br>Assets 2016 2017 2018 2019 2020<br>Common Equity 115,366 $ 137,162 $ 220,998 $ 244,794 $ 265,405 $<br>Less: Intangible Assets (4,060) (3,869) (3,678) (3,487) (3,296)<br>Tangible Common Equity 111,306 $ 133,293 $ 217,320 $ 241,307 $ 262,109 $<br>Total Assets 1,260,394 $ 1,616,612 $ 1,973,741 $ 2,268,830 $ 2,927,345 $<br>Less: Intangible Assets (4,060) (3,869) (3,678) (3,487) (3,296)<br>Tangible Assets 1,256,334 $ 1,612,743 $ 1,970,063 $ 2,265,343 $ 2,924,049 $<br>Tangible Common Equity/Tangible Assets 8.86% 8.26% 11.03% 10.65% 8.96%<br>Tangible Book Value Per Share 2016 2017 2018 2019 2020<br>Book Value Per Common Share 4.69 $ 5.56 $ 7.34 $ 8.45 $ 9.43 $<br>Less: Effects of Intangible Assets (0.17) (0.16) (0.12) (0.12) (0.12)<br>Tangible Book Value Per Common Share 4.53 $ 5.40 $ 7.22 $ 8.33 $ 9.31 $<br>Total Common Shares 24,589,861 24,679,861 30,097,274 28,973,572 28,143,493<br>As of and for the year ended December 31,
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19<br>This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of these<br>non-GAAP financial measures are provided below. The Company believes these non-GAAP financial measures provide useful information to both management and<br>investors to analyze and evaluate the Company’s financial performance. Because not all companies use the same calculations for these measures, the information<br>in this presentation may not be comparable to other similarly titled measures as calculated by other companies.<br>* Efficiency Ratio is adjusted to exclude the historic tax credit amortization, FHLB prepayment fees and debt prepayment fees.<br>Dollars in thousands<br>Reconciliation of Non-GAAP Financial<br>Measures – Profitability, TCE and TBV<br>Efficiency Ratio<br>September 30,<br>2020<br>September 30,<br>2020*<br>December 31,<br>2020<br>December 31,<br>2020*<br>March 31,<br>2021<br>March 31,<br>2021*<br>June 30,<br>2021<br>June 30,<br>2021*<br>September 30,<br>2021<br>September 30,<br>2021*<br>Noninterest Expense 9,672 $ 9,672 $ 15,258 $ 15,258 $ 10,923 $ 10,923 $ 11,477 $ 11,477 $ 13,236 $ 13,236 $<br>Less: Amortization of Tax Credit Investments - (145) - (146) - (118) - (140) - (152)<br>Less: FHLB Advances Prepayment Fee - - - (5,613) - - - - - -<br>Less: Debt Prepayment Fees - - - - - - - - - (582)<br>Less: Amortization Intangible Assets (48) (48) (48) (48) (48) (48) (47) (47) (48) (48)<br>Adjusted Noninterest Expense 9,624 $ 9,479 $ 15,210 $ 9,451 $ 10,875 $ 10,757 $ 11,430 $ 11,290 $ 13,188 $ 12,454 $<br>Net Interest Income 21,679 $ 21,679 $ 24,841 $ 24,841 $ 25,395 $ 25,395 $ 26,288 $ 26,288 $ 28,673 $ 28,673 $<br>Noninterest Income 1,157 1,157 986 986 1,008 1,008 1,603 1,603 1,410 1,410<br>Less: Gain on Sales of Securities (109) (109) (30) (30) - - (702) (702) (48) (48)<br>Adjusted Operating Revenue 22,727 $ 22,727 $ 25,797 $ 25,797 $ 26,403 $ 26,403 $ 27,189 $ 27,189 $ 30,035 $ 30,035 $<br>Efficiency Ratio 42.3% 41.7% 59.0% 36.6% 41.2% 40.7% 42.0% 41.5% 43.9% 41.5%<br>Tangible Common Equity &<br>Tangible Common Equity/Tangible Assets<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>Total Shareholders' Equity 265,432 $ 265,405 $ 279,171 $ 290,830 $ 367,803 $ Net Income<br>Less: Preferred Stock - - - - (66,515) Add: Debt Prepayment Fees<br>Total Common Shareholders' Equity 265,432 265,405 279,171 290,830 301,288 Less: Tax Impact<br>Less: Intangible Assets (3,344) (3,296) (3,248) (3,200) (3,153) Net Income, Excluding Impact of Debt Prepayment Fees<br>Tangible Common Equity 262,088 $ 262,109 $ 275,923 $ 287,630 $ 298,135 $<br>Average Total Shareholders' Equity<br>Total Assets 2,774,564 $ 2,927,345 $ 3,072,359 $ 3,162,612 $ 3,389,125 $ Less: Average Preferred Stock<br>Less: Intangible Assets (3,344) (3,296) (3,248) (3,200) (3,153) Average Total Common Shareholders' Equity<br>Tangible Assets 2,771,220 $ 2,924,049 $ 3,069,111 $ 3,159,412 $ 3,385,972 $ Less: Effects of Average Intangible Assets<br>Average Tangible Common Equity<br>Tangible Common Equity/Tangible Assets 9.46% 8.96% 8.99% 9.10% 8.81%<br>Annualized Return on Average Tangiible Common Equity<br>Tangible Book Value Per Share<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 Diluted Weighted Average Shares Outstanding<br>Diluted Earnings Per Common Share Excluding Impact<br>Book Value Per Common Share 9.25 $ 9.43 $ 9.92 $ 10.33 $ 10.73 $ of Debt Prepayment Fees<br>Less: Effects of Intangible Assets (0.12) (0.12) (0.12) (0.11) (0.11)<br>Tangible Book Value Per Common Share 9.13 $ 9.31 $ 9.80 $ 10.22 $ 10.62 $<br>Total Common Shares 28,710,775 28,143,493 28,132,929 28,162,777 28,066,822<br>(32,332)<br>(3,180)<br>15.47%<br>As of and for the quarter ended,<br>As of and for the quarter ended, As of and for the quarter ended<br>September 30, 2021 Diluted EPS, ROA & ROATCE<br>295,092 $<br>29,110,547 $<br>11,509 $<br>582<br>(151)<br>11,940 $<br>330,604 $<br>298,272 $<br>0.41 $
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20<br>This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of these<br>non-GAAP financial measures are provided below. The Company believes these non-GAAP financial measures provide useful information to both management and<br>investors to analyze and evaluate the Company’s financial performance. Because not all companies use the same calculations for these measures, the information<br>in this presentation may not be comparable to other similarly titled measures as calculated by other companies.<br>Dollars in thousands<br>Reconciliation of Non-GAAP Financial<br>Measures – PPNR<br>Pre-Provision Net Revenue<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>Noninterest Income 1,157 $ 986 $ 1,008 $ 1,603 $ 1,410 $<br>Less: Gain on sales on Securities (109) (30) - (702) (48)<br>Total Operating Noninterest Income 1,048 956 1,008 901 1,362<br>Plus: Net Interest Income 21,679 24,841 25,395 26,288 28,673<br> Net Operating Revenue 22,727 25,797 26,403 27,189 30,035<br>Noninterest Expense 9,672 $ 15,258 $ 10,923 $ 11,477 $ 13,236 $<br>Less: Amortization of Tax Credit Investments (145) (146) (118) (140) (152)<br>Less: FHLB Advances Prepayment Fees - (5,613) - - -<br>Less: Debt Prepayment Fee - - - - (582)<br> Total Operating Noninterest Expense 9,527 9,499 10,805 11,337 12,502<br>Pre-Provision Net Revenue 13,200 $ 16,298 $ 15,598 $ 15,852 $ 17,533 $<br> Plus:<br>Non-Operating Revenue Adjustments 109 30 - 702 48<br> Less:<br>Provision for Loan Losses 3,750 3,900 1,100 1,600 1,300<br>Non-Operating Expense Adjustments 145 5,759 118 140 734<br>Provision for Income Taxes 2,240 1,690 3,709 3,821 4,038<br>Net Income 7,174 $ 4,979 $ 10,671 $ 10,993 $ 11,509 $<br>Average Assets 2,711,755 $ 2,816,032 $ 2,940,262 $ 3,076,712 $ 3,332,301 $<br>Pre-Provision Net Revenue Return on Average Assets 1.94% 2.30% 2.15% 2.07% 2.09%
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21<br>This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of these<br>non-GAAP financial measures are provided below. The Company believes these non-GAAP financial measures provide useful information to both management and<br>investors to analyze and evaluate the Company’s financial performance. Because not all companies use the same calculations for these measures, the information<br>in this presentation may not be comparable to other similarly titled measures as calculated by other companies.<br>Dollars in thousands<br>Reconciliation of Quarterly Non-GAAP<br>Financial Measures – Core NIM<br>Core Net Interest Margin<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>Net Interest Income (Tax-Equivalent Basis) 21,898 $ 25,051 $ 25,609 $ 26,495 $ 28,880 $<br>Less: Loan Fees (1,198) (1,514) (1,202) (1,023) (1,487)<br>Less: PPP Interest and Fees (1,173) (2,097) (1,864) (1,767) (1,753)<br> Core Net Interest Margin 19,527 $ 21,440 $ 22,543 $ 23,705 $ 25,640 $<br>Average Interest Earning Assets 2,655,882 $ 2,759,543 $ 2,883,084 $ 3,019,437 $ 3,234,301 $<br>Less: Avergage PPP Loans (181,397) (165,099) (148,881) (149,312) (76,006)<br> Core Average Interest Earning Assets 2,474,485 $ 2,594,444 $ 2,734,203 $ 2,870,125 $ 3,158,295 $<br>Core Net Interest Margin 3.14% 3.29% 3.34% 3.31% 3.22%<br>Loan Interest Income (Tax-Equivalent Basis) 26,254 $ 28,265 $ 27,938 $ 28,778 $ 31,101 $<br>Less: Loan Fees (1,198) (1,514) (1,202) (1,023) (1,487)<br>Less: PPP Interest and Fees (1,173) (2,097) (1,864) (1,767) (1,753)<br> Core Loan Interest Income 23,883 $ 24,654 $ 24,872 $ 25,988 $ 27,861 $<br>Average Loans 2,206,807 $ 2,301,328 $ 2,389,919 $ 2,534,071 $ 2,655,027 $<br>Less: Average PPP Loans (181,397) (165,099) (148,881) (149,312) (76,006)<br> Core Average Loans 2,025,410 $ 2,136,229 $ 2,241,038 $ 2,384,759 $ 2,579,021 $<br>Core Loan Yield 4.69% 4.59% 4.50% 4.37% 4.28%<br>As of and for the quarter ended,
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Existing Client<br>57.7%<br>New Client<br>42.3%<br>22<br>New vs.<br>Existing<br>Client<br>PPP Origination Summary as of 9/30/2021<br>Number of<br>Loans<br>Principal<br>Balance<br>Origination<br>Fees<br>Round 1 1,200 $ 181,600 $ 5,706<br>Round 2 651 78,386 3,544<br>Total 1,851 $ 259,986 $ 9,250<br>Dollars in thousands<br>PPP Outstanding Summary<br>As of and for the Three Months Ended 9/30/2021 Program Lifetime<br># of Loans Principal<br>Balance Net Fees Earned Unrecognized<br>Fees<br>Net Fees<br>Generated Net Fees Earned<br>Round 1 72 $ 6,715 $ 294 $ 82 $ 5,706 $ 5,624<br>Round 2 301 47,475 1,271 1,775 3,544 1,769<br>Total 373 $ 54,190 $1,565 $ 1,857 $ 9,250 $ 7,393<br>PPP Loans
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23<br>Dollars in thousands<br>Loan Portfolio – Repricing Composition<br>Variable/Adjustable Loans vs. Rate Floors<br>Fixed/Adjustable Years to Maturity/Repricing<br>Loan Portfolio Repricing<br>Fixed,<br>59.4%<br>Variable,<br>22.1%<br>Adjustable,<br>18.5%<br>80%<br>72% 64% 78% 70%<br>85% 20%<br>28%<br>36% 22%<br>30%<br>15%<br>$321,274<br>$207,347<br>$297,471 $281,800<br>$375,987<br>$634,501<br>Less Than<br>1 Year<br>1 to 2 Years 2 to 3 Years 3 to 4 Years 4 to 5 Years 5+ Years<br>Adjustable Fixed<br>Index Rate At Floor 0 to -25 bps -26 to -50 bps -51 to -75 bps -76 to -100 bps > -100 bps Total<br>PRIME 334,757 $ 24,587 $ 8,509 $ 16 $ 115 $ 62 $ 368,047 $<br>Libor 141,560 $ 12,351 $ - $ - $ 10,798 $ - $ 164,709 $<br>SOFR 2,274 $ - $ - $ - $ - $ - $ 2,274 $<br>2 Yr FHLB 9,694 $ - $ - $ - $ - $ - $ 9,694 $<br>3 Yr FHLB 85,932 $ - $ - $ - $ - $ - $ 85,932 $<br>5 Yr FHLB 73,834 $ - $ - $ - $ - $ - $ 73,834 $<br>90 Day T-Bill 10,000 $ - $ - $ - $ - $ - $ 10,000 $<br>1 Yr CMT 3,743 $ - $ - $ - $ - $ - $ 3,743 $<br>2 Yr CMT 116 $ - $ 8,455 $ - $ - $ - $ 8,571 $<br>3 Yr CMT 74,820 $ 3,629 $ 2,358 $ 767 $ 8,843 $ 10,804 $ 101,220 $<br>5 Yr CMT 164,511 $ 1,188 $ 2,303 $ 5,401 $ 1,635 $ 11,438 $ 186,475 $<br>Total 901,240 $ 41,755 $ 21,624 $ 6,184 $ 21,392 $ 22,303 $ 1,014,499 $
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24 1 Rate indicated assumes renewal into like term at market rates as of October 12, 2021<br>Dollars in thousands<br>Time Deposit Maturities Time Deposit Repricing<br>Deposit Repricing Opportunities<br>$146 million in time deposits maturing over the next five<br>quarters at a blended cost of 1.46%<br>$23,450<br>$17,566 $19,576 $22,059<br>$5,120<br>$29,183<br>$11,450<br>$13,888<br>$2,946<br>$699<br>$52,633<br>$29,016<br>$33,464<br>$25,005<br>$5,819<br>4Q21 1Q22 2Q22 3Q22 4Q22<br>Wholesale Time Deposit Maturities Retail Time Deposit Maturities<br>Maturity Dates Balance<br>Weighted<br>Avg. Yield<br>Implied<br>Repricing<br>Rate1<br>% of Total<br>Portfolio<br>Oct-21 27,360 $ 1.51% 0.61% 5.20%<br>Nov-21 10,637 1.37% 0.47% 2.02%<br>Dec-21 14,636 1.62% 0.50% 2.78%<br>Jan-22 11,906 1.24% 0.36% 2.26%<br>Feb-22 11,359 1.68% 0.64% 2.16%<br>Mar-22 5,751 1.31% 0.39% 1.09%<br>Apr-22 12,418 1.96% 0.56% 2.36%<br>May-22 10,844 1.58% 0.46% 2.06%<br>Jun-22 10,202 1.71% 0.56% 1.94%<br>Jul-22 9,045 0.76% 0.31% 1.72%<br>Aug-22 7,941 1.10% 0.54% 1.51%<br>Sep-22 8,019 0.75% 0.35% 1.52%<br>Oct-22 1,442 2.37% 0.60% 0.27%<br>Nov-22 2,001 1.59% 0.55% 0.38%<br>Dec-22 2,376 2.26% 0.54% 0.45%<br>Total 145,937 $ 1.46% 0.50% 27.75%
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Dollars in thousands<br>25<br>Investor Real Estate Secured: CRE Nonowner Occupied (“NOO”)<br>Portfolio Characteristics – CRE NOO<br>Loan Balance Outstanding $786,271<br>% of Total Loans, Gross 29.0%<br>Number of Loans 375<br>Average Loan Size $2,097<br>Loan-to-Value (Weighted Average) 61.1%<br>5 Year Net Charge-Offs (%) 0.01%<br>By Property Type<br>Office<br>26.6%<br>Retail<br>21.4% Industrial<br>26.6%<br>Senior Housing<br>9.5%<br>Hotels<br>2.6%<br>Restaurant<br>3.2%<br>Other<br>10.1%<br>$786<br>Million<br>77% 4-6<br>Month<br>Risk Rating Number of Loans 3Q21 Total<br>Pass 360 $ 742,074<br>Watch 10 39,979<br>Classified 5 4,218<br>Total 375 $ 786,271<br>Investor Real Estate Secured –<br>CRE Nonowner Occupied (NOO)
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Dollars in thousands<br>26<br>Portfolio Characteristics – CRE NOO Office<br>Loan Balance Outstanding $209,329<br>% of Total Loans, Gross 7.7%<br>Number of Loans 98<br>Average Loan Size $2,136<br>Loan-to-Value (Weighted Average) 63.0%<br>Investor Real Estate Secured: CRE NOO Retail<br>0-50k Sq Ft,<br>42.8%<br>50k - 125k Sq Ft,<br>20.5%<br>125k - 200k Sq Ft,<br>20.1%<br>200k+ Sq Ft,<br>16.6%<br>$209<br>Million<br>Risk Rating Number of Loans 3Q21 Total<br>Pass 96 $ 208,705<br>Watch --<br>Classified 2 624<br>Total 98 $ 209,329<br>Investor Real Estate Secured –<br>CRE NOO Office<br>By Property Square Footage
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Dollars in thousands<br>27<br>Portfolio Characteristics – CRE NOO Retail<br>Loan Balance Outstanding $168,380<br>% of Total Loans, Gross 6.2%<br>Number of Loans 99<br>Average Loan Size $1,701<br>Loan-to-Value (Weighted Average) 62.2%<br>Investor Real Estate Secured: CRE NOO Retail<br>0-25k Sq Ft,<br>47.8%<br>25k - 75k Sq Ft,<br>28.9%<br>75k - 125k Sq Ft,<br>12.1%<br>125k+ Sq Ft,<br>11.2%<br>$168<br>Million Risk Rating Number of Loans 3Q21 Total<br>Pass 92 $ 155,756<br>Watch 4 9,030<br>Classified 3 3,594<br>Total 99 $ 168,380<br>Investor Real Estate Secured –<br>CRE NOO Retail<br>By Property Square Footage
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Dollars in thousands<br>28<br>Portfolio Characteristics – CRE NOO Industrial<br>Loan Balance Outstanding $208,981<br>% of Total Loans, Gross 7.7%<br>Number of Loans 78<br>Average Loan Size $2,679<br>Loan-to-Value (Weighted Average) 59.0%<br>Investor Real Estate Secured: CRE NOO Retail<br>0-50k Sq Ft,<br>21.0%<br>50k - 125k Sq Ft,<br>37.7%<br>125k+ Sq Ft,<br>41.3% $209<br>Million Risk Rating Number of Loans 3Q21 Total<br>Pass 78 $ 208,981<br>Watch --<br>Classified --<br>Total 78 $ 208,981<br>Investor Real Estate Secured –<br>CRE NOO Industrial<br>By Property Square Footage
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29 1 Based on state of primary real property collateral if available, otherwise borrower address is used<br>Dollars in thousands<br>Investor Real Estate Secured: CRE NOO Hotels<br>Portfolio Characteristics – CRE NOO Hotels<br>Loan Balance Outstanding $20,138<br>% of Total Loans, Gross 0.7%<br>Number of Loans 6<br>Average Loan Size $3,356<br>Loan-to-Value (Weighted Average) 72.3%<br>Twin Cities MSA<br>82.4%<br>MN<br>17.6%<br>$20<br>Million<br>4-6<br>Month<br>100%<br>Risk Rating Number of Loans 3Q21 Total<br>Pass 3 $ 4,451<br>Watch 3 15,687<br>Classified --<br>Total 6 $ 20,138<br>Investor Real Estate Secured –<br>CRE NOO Hotels<br>By Geography1
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30<br>Portfolio Characteristics – CRE NOO Restaurants<br>Loan Balance Outstanding $25,433<br>% of Total Loans, Gross 0.9%<br>Number of Loans 18<br>Average Loan Size $1,413<br>Loan-to-Value (Weighted Average) 61.7%<br>Investor Real Estate Secured: CRE NOO Restaurant<br>Full-Service<br>53.1%<br>Quick-Service<br>26.8%<br>Tap Rooms<br>9.3%<br>Coffee<br>Shops &<br>Bakeries<br>10.8%<br>$25<br>Million<br>96%<br>4-6<br>Month<br>Risk Rating Number of Loans 3Q21 Total<br>Pass 18 $ 25,433<br>Watch --<br>Classified --<br>Total 18 $ 25,433<br>Dollars in thousands<br>Investor Real Estate Secured –<br>CRE NOO Restaurants<br>By Restaurant Type
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5-19 Units<br>14.6%<br>20-49<br>Units<br>26.5%<br>50-99 Units<br>30.4%<br>100+ Units<br>28.5%<br>$865<br>Million<br>31<br>Portfolio Characteristics – Multifamily<br>Loan Balance Outstanding $865,172<br>% of Total Loans, Gross 31.9%<br>Number of Loans 353<br>Average Loan Size $2,451<br>Loan-to-Value (Weighted Average) 63.8%<br>5 Year Net Charge-Offs (%) 0.00%<br>Investor Real Estate Secured: CRE NOO Restaurant<br>44%<br>56%<br>7-12<br>Month<br>Risk Rating Number of Loans 3Q21 Total<br>Pass 353 $ 865,172<br>Watch --<br>Classified --<br>Total 353 $ 865,172<br>Dollars in thousands<br>Investor Real Estate Secured –<br>Multifamily<br>By Unit Type
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Twin Cities MSA<br>98.0%<br>MN<br>1.1%<br>Other<br>States<br>0.9%<br>Residential<br>23.6%<br>Multifamily<br>39.6%<br>CRE Other<br>12.3%<br>Land<br>24.5%<br>$257<br>Million<br>32<br>By<br>Property<br>Type<br>By<br>Geography1<br>Land Portfolio Composition<br>Investor Real Estate Secured: CRE NOO Restaurant<br>Portfolio Characteristics – C&D<br>Loan Balance Outstanding $257,167<br>% of Total Loans, Gross 9.5%<br>% Utilization of Commitments 38.1%<br>Number of Loans 343<br>Average Loan Size $750<br>Loan-to-Value (Weighted Average) 60.7%<br>5 Year Net Charge-Offs (%) 0.00%<br>Finished<br>Lots,<br>31.5%<br>Developed<br>Land,<br>49.4%<br>Undeveloped<br>Land, 19.1%<br>$63<br>Million<br>1 Based on state of primary real property collateral if available, otherwise borrower address is used<br>Dollars in thousands<br>Investor Real Estate Secured –<br>Construction and Development<br>$257<br>Million
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33<br>Investor Real Estate Secured: CRE Nonowner Occupied (“NOO”)<br>Portfolio Characteristics – CRE OO<br>Loan Balance Outstanding $101,834<br>% of Total Loans, Gross 3.8%<br>Number of Loans 150<br>Average Loan Size $679<br>Loan-to-Value (Weighted Average) 60.2%<br>5 Year Net Charge-Offs (%) (0.01)%<br>Office<br>33.8%<br>Retail<br>10.4%<br>Industrial<br>42.0%<br>Restaurant<br>2.9%<br>Senior Housing<br>0.9%<br>Other<br>10.0%<br>$102<br>Million<br>4-6<br>Month<br>Risk Rating Number of Loans 3Q21 Total<br>Pass 144 $ 99,396<br>Watch 2 1,597<br>Classified 4 841<br>Total 150 $ 101,834<br>Dollars in thousands<br>Real Estate Secured –<br>CRE Owner Occupied<br>By Property Type
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Real Estate<br>and Rental<br>and Leasing,<br>38.2%<br>Construction,<br>15.1%<br>Manufacturing,<br>14.8%<br>Finance &<br>Insurance,<br>11.2%<br>Other,<br>6.4%<br>Professional<br>Services,<br>5.1%<br>Wholesale/Retail<br>Trade, 4.2%<br>Accomodation &<br>Food Services,<br>5.0%<br>$350<br>Million<br>34 1 Distribution by North American Industry Classification System (NAICS). Any industries included in Other category are individually < 3% of total portfolio<br>Dollars in thousands<br>Portfolio Characteristics – C&I<br>Loan Balance Outstanding $350,081<br>% of Total Loans, Gross 12.9%<br>Number of Loans 761<br>Average Loan Size $460<br>Number of Relationships 478<br>5 Year Net Charge-Offs (%) 0.03%<br>4-6<br>Month<br>Risk Rating Number of Loans 3Q21 Total<br>Pass 740 $ 323,787<br>Watch 17 25,091<br>Classified 4 1,203<br>Total 761 $ 350,081<br>Commercial and Industrial<br>By Industry1
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