8-K - BWB - Equibles

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

FORM 8-K CURRENT REPORT

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

January 29, 2025

Date of Report

(Date of earliest event reported)

BRIDGEWATER BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

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

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

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

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

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

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

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

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

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

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

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

Emerging growth company ☐

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

Item 2.02 R esults of Operations and Financial Condition.

On January 29, 2025, Bridgewater Bancshares, Inc. (the “Company”) issued a press release announcing its financial results as of and for the three and twelve months ended December 31, 2024. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

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

Item 7.01 R egulation FD Disclosure.

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

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

Item 8.01 Other Events .

On January 29, 2025, in its 2024 fourth quarter earnings release, the Company announced that its Board of Directors had declared a quarterly cash dividend on its 5.875% Non-Cumulative Perpetual Preferred Stock, Series A (“Series A Preferred Stock”). The quarterly cash dividend of $36.72 per share, equivalent to $0.3672 per depository share, each representing a 1/100^th^ interest in a share of the Series A Preferred Stock (Nasdaq: BWBBP), is payable on March 3, 2025, to shareholders of record of the Series A Preferred Stock at the close of business on February 14, 2025.

Item 9.01 Financial Statements and Exhibits.

(d)****Exhibits

Exhibit 99.1	Press Release of Bridgewater Bancshares, Inc., dated January 29, 2025, regarding fourth quarter 2024 financial results
Exhibit 99.2	Earnings Presentation dated January 29, 2025
---	---
Exhibit 104	Cover Page Interactive Data File (embedded within the Inline XBRL document)
---	---

SIGNATURES

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


	Bridgewater Bancshares, Inc.


Date: January 29, 2025
	By: /s/ Jerry Baack
	Name: Jerry Baack
	Title: Chairman and Chief Executive Officer

Exhibit 99.1


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

January 29, 2025

Bridgewater Bancshares, Inc. Announces Fourth Quarter 2024 Financial Results

Fourth Quarter 2024 Highlights

●	Net income of $8.2 million, or $0.26 per diluted common share; adjusted net income of $8.6 million, or $0.27 per diluted common share.^(1)^
●	Completed the acquisition of First Minnetonka City Bank (FMCB) in just 107 days following announcement.
---	---
●	Net interest income increased $1.4 million, or 5.3%, from the third quarter of 2024.
---	---
●	Net interest margin (on a fully tax-equivalent basis) of 2.32% for the fourth quarter of 2024, an increase of eight basis points from the third quarter of 2024.
---	---
●	Core deposits^(2)^increased by $428.2 million, or 63.6% annualized, from the third quarter of 2024; core deposits excluding FMCB increased by $210.9 million, or 31.3% annualized.
---	---
●	Gross loans increased by $182.9 million, or 19.7% annualized, from the third quarter of 2024; gross loans excluding FMCB increased by $65.8 million, or 7.1% annualized.
---	---
●	Annualized net loan charge-offs as a percentage of average loans of 0.03%, compared to 0.10% for the third quarter of 2024.
---	---

Full Year 2024 Highlights

●	Net income of $32.8 million, or $1.03 per diluted common share; adjusted net income of $33.4 million, or $1.05 per diluted common share.^(1)^
●	Total deposits increased by $376.8 million, or 10.2%, in 2024; core deposits^(2)^ increased by $559.4 million, or 22.0%.
---	---
●	Gross loans increased by $144.2 million, or 3.9%, in 2024.
---	---
●	Loan-to-deposit ratio of 94.7%, down from 100.4% at December 31, 2023.
---	---
●	Net loan charge-offs as a percentage of average loans were 0.03% for the year ended December 31, 2024, compared to 0.01% for the year ended December 31, 2023.
---	---
●	Nonperforming assets to total assets of 0.01% for the year ended December 31, 2024, compared to 0.02% at December 31, 2023.
---	---
●	Tangible book value per share^(1)^ of $13.49 at December 31, 2024, an increase of 5.1%, from December 31, 2023.
---	---

(1)	Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.
(2)	Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000.
---	---

Page 1 of 18

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

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

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

Page 2 of 18

Key Financial Measures


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

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

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

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

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

Page 3 of 18

Income Statement

Net Interest Margin and Net Interest Income

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

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

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

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

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

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

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


	Three Months Ended
	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Interest	5.47	%	5.47	%	5.42	%	5.31	%	5.25	%
Fees	0.08		0.10		0.08		0.07		0.08
Yield on Loans	5.55	%	5.57	%	5.50	%	5.38	%	5.33	%

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

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

Page 4 of 18

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

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

Provision for Credit Losses

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

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

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

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

Noninterest Income

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

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

Noninterest Expense

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

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

Income Taxes

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

Page 5 of 18

Balance Sheet

Loans


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

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

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

Deposits


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

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

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

Page 6 of 18

Liquidity

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


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

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

Asset Quality

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

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

Capital

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

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

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

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

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

Page 7 of 18

Today, the Company also announced that its Board of Directors has declared a quarterly cash dividend on its 5.875% Non-Cumulative Perpetual Preferred Stock, Series A (Series A Preferred Stock). The quarterly cash dividend of $36.72 per share, equivalent to $0.3672 per depositary share, each representing a 1/100th interest in a share of the Series A Preferred Stock (Nasdaq: BWBBP), is payable on March 3, 2025 to shareholders of record of the Series A Preferred Stock at the close of business on February 14, 2025.

Conference Call and Webcast

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

About the Company

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

Use of Non-GAAP financial measures

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

Forward-Looking Statements

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

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: interest rate risk, including the effects of changes in interest rates; effects on the U.S. economy resulting from the implementation of policies proposed by the new presidential administration, including tariffs, mass deportations and tax regulations; fluctuations in the values of the securities held in our securities portfolio, including as the result of changes in interest rates; business and economic conditions generally and in the financial services industry, nationally and within our market area, including the level and impact of inflation and possible recession; the effects of developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in several bank failures; credit risk and risks from concentrations (by type of borrower, geographic area, collateral and industry) within the Company’s loan portfolio or large loans to certain borrowers (including CRE loans); the overall health of the local and national real estate market; our ability to successfully manage credit risk; our ability to maintain an adequate level of allowance for credit losses on loans; new or revised accounting standards as may be adopted by state and federal regulatory agencies, the FASB, SEC or PCAOB; the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; our ability to

Page 8 of 18

successfully manage liquidity risk, which may increase our dependence on non-core funding sources such as brokered deposits, and negatively impact our cost of funds; our ability to raise additional capital to implement our business plan; our ability to implement our growth strategy and manage costs effectively; the composition of our senior leadership team and our ability to attract and retain key personnel; talent and labor shortages and employee turnover; the occurrence of fraudulent activity, breaches or failures of our or our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; interruptions involving our information technology and telecommunications systems or third-party servicers; competition in the financial services industry, including from nonbank competitors such as credit unions, “fintech” companies and digital asset service providers; the effectiveness of our risk management framework; the commencement, cost and outcome of litigation and other legal proceedings and regulatory actions against us; the impact of recent and future legislative and regulatory changes, including in response to prior bank failures; risks related to climate change and the negative impact it may have on our customers and their businesses; the imposition of tariffs or other governmental policies impacting the value of products produced by our commercial borrowers; severe weather, natural disasters, wide spread disease or pandemics, acts of war or terrorism or other adverse external events, including ongoing conflicts in the Middle East and the Russian invasion of Ukraine; potential impairment to the goodwill the Company recorded in connection with acquisitions; risks associated with our acquisition of First Minnetonka City Bank, including the possibility that the merger may be more difficult or expensive to integrate than anticipated, and the effect of the merger on the Company’s customer and employee relationships and operating results; changes to U.S. or state tax laws, regulations and governmental policies concerning the Company’s general business, including changes in interpretation or prioritization and changes in response to prior bank failures; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission.

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

Page 9 of 18

Bridgewater Bancshares, Inc. and Subsidiaries Financial Highlights

(dollars in thousands, except share data)


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

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

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

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

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

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

Page 10 of 18


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

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

Page 11 of 18

Bridgewater Bancshares, Inc. and Subsidiaries

Consolidated Balance Sheets

(dollars in thousands, except share data)


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

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

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

Page 12 of 18

Bridgewater Bancshares, Inc. and Subsidiaries Consolidated Statements of Income

(dollars in thousands, except per share data)


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


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

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

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

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

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

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

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

Page 13 of 18

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

(dollars in thousands, except per share data)

(Unaudited)


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

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

Page 14 of 18

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

(dollars in thousands, except per share data)

(Unaudited)


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

Page 15 of 18

Bridgewater Bancshares, Inc. and Subsidiaries Asset Quality Summary

(dollars in thousands)

(unaudited)


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

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


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


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

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

Page 16 of 18

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

(dollars in thousands)

(unaudited)


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Page 17 of 18

Bridgewater Bancshares, Inc. and Subsidiaries

Non-GAAP Financial Measures

(dollars in thousands)

(unaudited)


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Page 18 of 18

Page 19 of 18

Exhibit 99.2

Disclaimer<br>Forward-Looking Statements<br>This presentation contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements<br>concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, identified by words such as “may”, “might”, “should”,<br>“could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized”, “target” and “outlook”, or the negative version of those words or other comparable<br>words of a future or forward-looking nature.<br>Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding our business, future plans and strategies,<br>projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are<br>difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these<br>forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: interest rate<br>risk, including the effects of changes in interest rates; effects on the U.S. economy resulting from the implementation of policies proposed by the new presidential administration, including tariffs, mass deportations and tax regulations;<br>fluctuations in the values of the securities held in our securities portfolio, including as the result of changes in interest rates; business and economic conditions generally and in the financial services industry, nationally and within our<br>market area, including the level and impact of inflation and possible recession; the effects of developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that<br>resulted in several bank failures; credit risk and risks from concentrations (by type of borrower, geographic area, collateral and industry) within the Company’s loan portfolio or large loans to certain borrowers (including CRE loans); the<br>overall health of the local and national real estate market; our ability to successfully manage credit risk; our ability to maintain an adequate level of allowance for credit losses; new or revised accounting standards as may be adopted by<br>state and federal regulatory agencies, the Financial Accounting Standards Board, Securities and Exchange Commission (the “SEC”) or Public Company Accounting Oversight Board; the concentration of large loans to certain borrowers;<br>the concentration of large deposits from certain clients, including those who have balances above current Federal Deposit Insurance Corporation (“FDIC”) insurance limits; our ability to successfully manage liquidity risk, which may<br>increase our dependence on non-core funding sources such as brokered deposits, and negatively impact our cost of funds; our ability to raise additional capital to implement our business plan; our ability to implement our growth<br>strategy and manage costs effectively; the composition of our senior leadership team and our ability to attract and retain key personnel; talent and labor shortages and employee turnover; the occurrence of fraudulent activity, breaches<br>or failures of our or our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud;<br>interruptions involving our information technology and telecommunications systems or third-party servicers; competition in the financial services industry, including from nonbank competitors such as credit unions, “fintech” companies<br>and digital asset service providers; the effectiveness of our risk management framework; the commencement, cost and outcome of litigation and other legal proceedings and regulatory actions against us; the impact of recent and future<br>legislative and regulatory changes, including in response to prior bank failures; risks related to climate change and the negative impact it may have on our customers and their businesses; the imposition of tariffs or other governmental<br>policies impacting the value of products produced by our commercial borrowers; severe weather, natural disasters, wide spread disease or pandemics, acts of war or terrorism or other adverse external events, including ongoing conflicts<br>in the Middle East and the Russian invasion of Ukraine; potential impairment to the goodwill the Company recorded in connection with acquisitions; risks associated with our acquisition of First Minnetonka City Bank (“FMCB”), including<br>the possibility that the merger may be more difficult or expensive to integrate than anticipated and the effect of the merger on the Company’s customer and employee relationships and operating results; changes to U.S. or state tax<br>laws, regulations and government policies concerning the Company’s general business, including changes in interpretation or prioritization and changes in response to prior bank failures and any other risks described in the “Risk Factors”<br>sections of reports filed by the Company with the SEC.<br>Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. The Company undertake no obligation to publicly update any<br>forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. Certain of the information contained in this presentation is derived<br>from information provided by industry sources. Although the Company believe that such information is accurate and that the sources from which it has been obtained are reliable, the Company cannot guarantee the accuracy of, and<br>have not independently verified, such information.<br>Use of Non-GAAP financial measures<br>In addition to the results presented in accordance with U.S. General Accepted Accounting Principles (“GAAP”), the Company routinely supplements its evaluation with an analysis of certain non-GAAP financial measures. The Company<br>believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors to help them understand the Company’s operating performance and trends, and to facilitate<br>comparisons with the performance of peers. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures<br>that may be presented by other companies. Reconciliations of non-GAAP disclosures to the comparable GAAP measures are provided in this presentation.<br>2
• Net interest income increased $1.4M, or 5.3%, from 3Q24<br>• Net interest margin (NIM) of 2.32%, up 8 bps from 3Q24<br>• Cost of total deposits of 3.40%, down 18 bps from 3Q24<br>• Average interest earning asset growth of $87M, or 7.6% annualized<br>0.01%<br>4Q24 Earnings Highlights<br>3<br>• Core deposit2 balances increased $211M from 3Q24, or 31.3% annualized (excluding $217M from FMCB acquisition)<br>• Loan balances increased $66M from 3Q24, or 7.1% annualized (excluding $117M from FMCB acquisition)<br>• FY24 total deposit growth of 10.2%, core deposit2 growth of 22.0%, and loan growth of 3.9%<br>• Loan-to-deposit ratio of 94.7%, down from 100.4% at 4Q23<br>• Nonperforming assets to total assets of 0.01% vs. 0.19% in 3Q24<br>• Annualized net charge-offs to average loans of 0.03% vs. 0.10% in 3Q24; FY24 net charge-offs of 0.03%<br>• 4Q24 provision for credit losses on loans of $1.5M, including $950K of CECL Day 1 non-PCD provision expense<br>• Substandard loans declined $9.8M, or 31.1%, from 3Q24 due to the sale of a central business district office property<br>NIM Expansion and<br>Net Interest Income<br>Growth<br>Superb<br>Asset Quality<br>Profile<br>$0.26<br>Diluted<br>EPS<br>Nonperforming Assets<br>to Total Assets<br>Efficiency<br>Ratio1<br>Return on<br>Average Assets<br>Return on Avg. Tangible<br>Common Equity1<br>0.68% 7.43% 56.8%<br>1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>2 Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000<br>• Acquisition closed on December 13, 2024<br>• Regulatory approvals received 55 days after deal announcement; deal closed 107 days after deal announcement<br>• Welcomed new team members and clients<br>Closed Acquisition of<br>First Minnetonka City<br>Bank (FMCB)<br>Strong<br>Balance Sheet<br>Growth<br>$0.27 0.71% 7.82% 55.2%<br>Reported<br>Adjusted1
---
Consistent Tangible Book Value Per Share<br>Outperformance<br>4<br>198%<br>77%<br>4Q16<br>1Q17<br>2Q17<br>3Q17<br>4Q17<br>1Q18<br>2Q18<br>3Q18<br>4Q18<br>1Q19<br>2Q19<br>3Q19<br>4Q19<br>1Q20<br>2Q20<br>3Q20<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>4Q22<br>1Q23<br>2Q23<br>3Q23<br>4Q23<br>1Q24<br>2Q24<br>3Q24<br>4Q24<br>BWB Peer Bank Average2<br>4Q24 Tangible Book Value Per Share1<br>Impacted by FMCB Acquisition Following 31 Consecutive Quarters of Growth<br>1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>2<br>Includes publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion as of September 30, 2024 with growth rate through 2Q24 (Source: S&P Capital IQ)
---
NIM Expansion and<br>Net Interest Income Growth<br>5<br>$24,563 $24,023 $24,229 $24,631 $26,220<br>$751 $608 $767 $968<br>$747 $25,314 $24,631 $24,996 $25,599<br>$26,967<br>2.27%<br>2.24% 2.24% 2.24%<br>2.32%<br>4Q23 1Q24 2Q24 3Q24 4Q24<br>Net Interest Margin1<br>Net Interest Income (ex. Loan Fees)<br>Loan Fees<br>Net Interest Income and Margin Trends<br>2.24%<br>0.13%<br>(0.02)% (0.02)% (0.02)% (0.01)% (0.01)%<br>2.32%<br>0.02% 0.01%<br>NIM<br>(3Q24)<br>Deposits FMCB<br>Stub<br>Period<br>Purchase<br>Accounting<br>Accretion<br>Borrow-ings<br>Loan<br>Fees<br>Cash and<br>Invest-ments<br>Loans Other NIM<br>(4Q24)<br>Net Interest Margin Drivers<br>4Q24 Net Interest Income / Net Interest Margin Commentary<br>1 Amounts calculated on a tax-equivalent basis using statutory federal tax rate of 21%<br>Dollars in thousands<br>Net Interest Income<br>• Net interest income growth driven by NIM expansion and average earning<br>asset growth<br>• Reduced loan fees as loan payoffs declined from 3Q24 levels<br>Net Interest Margin<br>• NIM expansion following Fed rate cuts in late 2024<br>• NIM expanded even when excluding the impact of the FMCB stub period<br>income (+2 bps) and purchase accounting accretion (+1 bp)<br>• Positioned for continued NIM expansion in current interest rate<br>environment<br>FMCB Impact
---
Lower Funding Costs Drive NIM Expansion<br>6<br>$2,909 $2,961 $2,984 $3,089 $3,121<br>$753 $701 $692 $710 $718 $415 $434 $461 $403 $444<br>$4,077 $4,096 $4,137 $4,202 $4,283<br>3.23% 3.34% 3.49% 3.54% 3.38%<br>4Q23 1Q24 2Q24 3Q24 4Q24<br>$3,726 $3,729 $3,772 $3,722 $3,731<br>5.33% 5.38% 5.50% 5.57% 5.55%<br>5.25% 5.31% 5.42% 5.47% 5.47%<br>4Q23 1Q24 2Q24 3Q24 4Q24<br>$3,662 $3,662 $3,676 $3,799 $3,840<br>3.19% 3.32% 3.46% 3.58% 3.40%<br>4Q23 1Q24 2Q24 3Q24 4Q24<br>Loan Yield (ex. Loan Fees)2<br>Loan Yields Stable in 4Q24 Growth of High-Yielding Securities Portfolio<br>Deposit Costs Inflect Lower Total Funding Costs Inflect Lower<br>$630<br>$670 $673 $700<br>$752<br>4.63% 4.80% 4.94% 5.01% 4.86%<br>4Q23 1Q24 2Q24 3Q24 4Q24<br>Average Interest-Bearing Deposits Average Noninterest-Bearing Deposits<br>Average Borrowings Cost of Funds<br>Average Loans Loan Yield1 Average Investments Investment Yield1<br>Average Total Deposits Cost of Total Deposits<br>1 Amounts calculated on a tax-equivalent basis using statutory federal tax rate of 21%<br>2 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>Dollars in millions
---
Positive Revenue Growth Trends Continue<br>7<br>PPNR ROA1<br>Pre-Provision Net Revenue (PPNR)1 Growth Strong Net Interest Income and Noninterest Income Growth<br>$25,314 $24,631 $24,996 $25,599 $26,967<br>$1,409 $1,550 $1,763 $1,522<br>$26,723 $2,533 $26,181 $26,759 $27,121<br>$29,500<br>4Q23 1Q24 2Q24 3Q24 4Q24<br>$11,010 $10,899 $10,900 $11,389<br>$12,688<br>$8,873<br>$7,831 $8,115 $8,675 $8,204<br>0.96% 0.95% 0.94% 0.96%<br>1.05%<br>0.98%<br>1.09%<br>0.77%<br>0.69% 0.70% 0.73%<br>0.68%<br>0.75%<br>0.71%<br>4Q23 1Q24 2Q24 3Q24 4Q24<br>PPNR Net Income 1 ROA Net Interest Income Noninterest Income<br>1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>Dollars in thousands<br>4Q24 noninterest income growth driven by higher swap fees and letter<br>of credit fees; no material stub period impact from FMCB<br>Adj. PPNR ROA1 Adj. ROA1
---
Well-Controlled Expenses<br>8<br>1.31% 1.36%<br>0.02%<br>0.04%<br>1.37% 1.33% 1.35% 1.33%<br>1.40%<br>58.8% 58.2% 58.7% 58.0% 56.8%<br>58.8% 58.2% 58.7% 57.2%<br>55.2%<br>4Q23 1Q24 2Q24 3Q24 4Q24<br>Adjusted NIE / Avg. Assets2<br>Adjusted Efficiency Ratio3<br>Highly Efficient Business Model Well-Controlled Expenses in 2024<br>Peer median efficiency ratio of 61%1 in 3Q24 4Q24 included $199K of stub period noninterest expense from FMCB<br>incurred after deal closed on December 13, 2024<br>Salary and Employee Benefits Occupancy<br>Technology Professional and Consulting<br>1<br>Includes publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion as of September 30, 2024 (Source: S&P Capital IQ)<br>2 Annualized<br>3 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>Dollars in thousands<br>Other<br>Adjustment Factors / Avg. Assets2<br>Efficiency Ratio3<br>Merger-Related<br>$9,615 $9,433 $9,675 $9,851 $10,431<br>$1,062 $1,057 $1,092 $1,069<br>$1,172 $1,236 $1,208 $1,284 $1,208<br>$782 $889 $1,322 $852 $926<br>$769<br>$3,045 $2,602 $2,636 $2,482<br>$2,630 $224<br>$15,740 $488<br>$15,189 $15,539 $15,760<br>$16,812<br>4Q23 1Q24 2Q24 3Q24 4Q24
---
Strong Core Deposit Momentum Continues<br>9<br>20% 18% 18% 19% 20%<br>19% 21% 20% 22%<br>21%<br>25% 26% 25% 26%<br>31%<br>8%<br>9% 10% 9%<br>8%<br>28%<br>26% 27% 24%<br>20%<br>$3,710 $3,807 $3,808 $3,747<br>$4,087<br>4Q23 1Q24 2Q24 3Q24 4Q24<br>Noninterest-Bearing Transaction Interest-Bearing Transaction<br>Savings & Money Market Time<br>Brokered<br>• Acquired $226M of FMCB deposits, including $217M of core deposits1<br>• Brokered deposits declined $75M, or 33.2% annualized<br>• Loan-to-deposit ratio of 94.7%, down from 100.4% in 4Q23<br>Strong Deposit Growth Trends Drive Improved Liquidity Position<br>1 Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000<br>Dollars in millions<br>Positive Core Deposit1 Growth Momentum Over Time<br>$2,890<br>$217<br>$2,470 $2,515 $2,585 $2,547 $2,637 $2,585 $2,678<br>$3,107<br>1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24<br>Improving Deposit Mix<br>Deposit Growth Rates<br> 4Q24<br>Ann. FY24<br>Total Deposits 36% 10%<br>Total Deposits (ex. FMCB) 12% 4%<br>Core Deposits1 64% 22%<br>Core Deposits1<br> (ex. FMCB) 31% 13%<br>Core Deposits Acquired Core Deposits1
---
Loan Growth Returns as Demand Continues<br>10<br>$3,752<br>$117<br>$3,724<br>$3,784 $3,800<br>$3,686<br>$3,869<br>4Q23 1Q24 2Q24 3Q24 4Q24<br>Gross Loans<br>Dollars in millions<br>• Acquired $117M of loans and leases, at amortized cost, from FMCB<br>• 4Q24 loan balances increased 19.7% annualized (7.1% ex. FMCB)<br>• FY24 loan balances increased 3.9% (1.8% ex. FMCB)<br>• Loan pipeline remains near 2-year high<br>FMCB Acquisition Aided Already Strong 4Q24 Loan Growth<br>• Loan demand – strong loan demand and pipelines aided by recent<br>interest rate cuts, but elevated competition continues<br>• Market and economic conditions – favorable business outlook, but<br>uncertain interest rate environment<br>• Loan payoffs and paydowns – pace of loan payoffs will continue to<br>impact loan growth<br>• Core deposit growth – more offensive-minded in 2025 due to increased<br>liquidity from strong core deposit growth and FMCB acquisition<br>Loan Growth Outlook Drivers<br>Acquired Gross Loans
---
New Originations Outpace Payoffs<br>11<br>Increased Demand Drove New Origination Growth<br>$71 $96 $91 $60<br>$189<br>$87 $67 $50<br>$46<br>$68<br>$158 $163<br>$141<br>$106<br>$257<br>4Q23 1Q24 2Q24 3Q24 4Q24<br>New Originations Advances<br>Loan Payoffs Remain Elevated<br>$102<br>$58<br>$105<br>$163 $155<br>$45<br>$44<br>$45<br>$54<br>$147 $38<br>$102<br>$150<br>$217<br>$193<br>4Q23 1Q24 2Q24 3Q24 4Q24<br>Payoffs Amortization/Paydowns<br>Dollars in millions<br>$3,686<br>$189<br>$68 $2<br>$117<br>$(155)<br>$(38)<br>$3,869<br>Gross<br>Loans<br>(3Q24)<br>New<br>Originations<br>Advances Net<br>Revolving<br>Lines of<br>Credit<br>FMCB<br>Acquired<br>Loans<br>Payoffs Amort. /<br>Paydowns<br>Gross<br>Loans<br>(4Q24)<br>4Q24 Loan Growth Waterfall
---
$(25)<br>$1<br>$4<br>$9<br>$44<br>$46<br>$51<br>$53<br>Well-Diversified Loan Portfolio<br>with Multifamily Expertise<br>12 Dollars in millions<br>CRE NOO<br>28.0%<br>Multifamily<br>36.9%<br>C&D<br>3.6%<br>1-4 Family<br>Mortgage<br>12.3%<br>CRE OO<br>4.9%<br>C&I<br>12.9%<br>Leases<br>1.1%<br>Consumer<br>& Other<br>0.3%<br>Loan Mix<br>by Type<br>$3.9<br>Billion<br>• 1-4 Family Mortgage and Lease growth driven by FMCB acquisition<br>• Increased loan demand drove increase in CRE NOO and Multifamily segments<br>• Continued migration out of Construction & Development as projects completed the construction phase<br>• Remained comfortable with the diversity of the loan portfolio, including CRE and Multifamily concentrations, given<br>portfolio performance and expertise<br>4Q24 Loan Growth by Type (vs. 3Q24)<br>Multifamily<br>1-4 Family Mortgage<br>Construction & Development<br>C&I<br>CRE Owner Occupied<br>CRE Nonowner Occupied<br>Consumer & Other<br>Leases<br>Includes $43M from<br>acquired FMCB portfolio<br>All growth from acquired<br>FMCB portfolio
---
Managing Multifamily and<br>Office-Related Risk<br>13 1<br>Includes formally subsidized properties (17%) and market rate properties with affordable set-asides (8%)<br>2 Excludes medical office of $108 million at December 31, 2024<br>Strong Multifamily Track Record in Stable Twin Cities Market Well-Managed CRE NOO Office Portfolio2 With Limited CBD Exposure<br>Percent of Total<br>Loans Average Loan Size<br>5.0% $2.3M<br>CRE NOO Office by Geography<br>Twin Cities<br>Suburban<br>55%<br>Minneapolis-St. Paul CBD<br>13%<br>Minneapolis-St. Paul Non-CBD<br>21%<br>Out-of-State<br>11%<br>$193M<br>• Majority of CRE NOO office<br>exposure in the Twin Cities<br>suburbs<br>• Only 3 loans totaling $22M<br>outside of Minnesota,<br>consisting of projects for<br>existing local clients<br>• Only 3 loans totaling $26M<br>located in CBDs, with one<br>rated Special Mention<br>• $302K charge-off on one<br>nonaccrual CBD office loan in<br>4Q24; property sold in<br>December 2024<br>Average<br>Loan Size<br>Weighted<br>Average LTV<br>NCOs<br>(since 2005)<br>$3.2M 68% $62K<br>Multifamily Lending Focus in the Twin Cities<br>• Bank of choice in the Twin Cities with expertise and differentiated service model<br>• Greater tenant diversification compared to other asset classes<br>• Affordable housing makes up 25%1 of the multifamily portfolio<br>• Positive market trends with reduced vacancy rates, strong absorption, and<br>slower construction = favorable outlook for occupancy and rent growth<br>• Market catalysts include relative affordability, steady population growth,<br>low unemployment, strong wages, and shortage of single-family housing<br>Twin Cities<br>Metro<br>92%<br>Greater<br>MN<br>4%<br>Other 4%<br>Location<br>Class A<br>41%<br>Class B<br>17%<br>Class C<br>41%<br>Construction<br>1%<br>Product<br>Type<br>NPAs/<br>Loans<br>0.00%<br>Weighted Average<br>LTV<br>60%
---
1 Includes publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion as of September 30, 2024 (Source: S&P Capital IQ)<br>2 Nonaccrual loans plus loans 90 days past due and still accruing and foreclosed assets<br>Dollars in thousands<br>Asset Quality Remains Strong<br>14<br>$91<br>$(3) $(2)<br>$931<br>$305<br>0.01% 0.00% 0.00%<br>0.10%<br>0.03%<br>4Q23 1Q24 2Q24 3Q24 4Q24<br>Net Charge-Offs<br>FY24 annualized NCOs of 0.03%;<br>2024 NCOs related to one CBD office loan<br>Net Charge-offs (recoveries) % of Average Loans (annualized)<br>$50,585 $50,494<br>$51,347 $51,949<br>$51,018<br>$52,277<br>1.36% 1.36% 1.36% 1.37% 1.38% 1.35%<br>3Q23 4Q23 1Q24 2Q24 3Q24 4Q24<br>Allowance for Credit Losses<br>Well-reserved compared to peer median<br>ACL/Loans of 1.11%1<br>Allowance for Credit Losses % of Gross Loans<br>$919<br>$269 $678<br>$8,812<br>$301 0.02%<br>0.01%<br>0.01%<br>0.19%<br>0.01%<br>4Q23 1Q24 2Q24 3Q24 4Q24<br>Nonperforming Assets2<br>One CBD office loan moved to nonaccrual<br>in 3Q24; property sold in 4Q24<br>NPAs % of Assets
---
Watch/Special Mention and Substandard<br>Loans Remain at Low Levels<br>15<br>Multifamily<br>49.1%<br>CRE NOO<br>Office<br>18.7%<br>CRE NOO<br>Retail<br>13.6%<br>CRE OO<br>8.8%<br>C&I<br>4.1%<br>Other<br>5.7%<br>$47<br>Million<br>Watch/Special Mention List Loans Substandard Loans<br>C&I<br>57.9%<br>CRE NOO<br>Hotels<br>13.7%<br>CRE NOO<br>Other<br>10.9%<br>CRE NOO<br>Retail<br>9.3%<br>CRE OO<br>4.4%<br>1-4<br>Family<br>3.2%<br>Other<br>0.6%<br>$22<br>Million<br>Watch/Special Mention Characteristics<br>Loan Balances Outstanding $46,581<br>% of Total Loans, Gross 1.2%<br>Number of Loans 21<br>Average Loan Size $2,218<br>Substandard Characteristics<br>Loan Balances Outstanding $21,791<br>% of Total Loans, Gross 0.6%<br>Number of Loans 22<br>Average Loan Size $990<br>% of Bank Risk-Based Capital 3.80%<br>$26,485<br>$21,624<br>$30,436 $31,991<br>$46,581<br>4Q23 1Q24 2Q24 3Q24 4Q24<br>$35,858 $33,829 $33,908 $31,637<br>$21,791<br>4Q23 1Q24 2Q24 3Q24 4Q24<br>Dollars in thousands
---
Capital Ratios Impacted by Acquisition<br>16<br>9.57% 9.66% 9.66%<br>9.75%<br>9.45%<br>9.16% 9.21% 9.41%<br>9.79%<br>9.08%<br>13.97% 14.00% 14.16%<br>14.62%<br>13.76%<br>7.73% 7.72% 7.90% 8.17%<br>7.36%<br>4Q23 1Q24 2Q24 3Q24 4Q24<br>Total Risk-Based Capital Ratio Common Equity Tier 1 Capital Ratio<br>Tier 1 Leverage Ratio<br>Capital Ratios Impacted by FMCB Acquisition in 4Q24<br>Tangible Common Equity Ratio1<br>1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>Recent Capital Actions<br>• No shares of common stock repurchased during 4Q24; $15.3 million<br>remaining under current share repurchase authorization<br>• Completed the acquisition of First Minnetonka City Bank on<br>December 13, 2024<br>Capital Allocation Priorities<br>1<br>3<br>2<br>Organic Growth<br>Share Repurchases<br>M&A<br>4 Dividends<br>Drive profitability by supporting a proven organic loan growth engine<br>Opportunistically return capital to shareholders by buying back<br>stock based on valuation, capital levels, and other uses of capital<br>Review and evaluate M&A opportunities that complement BWB’s<br>business model<br>Have not historically paid a common stock dividend given loan<br>growth opportunities
---
2025 Expectations<br>17<br>• Mid-to-high single digit loan growth over the course of the year<br>• Focus on profitable growth while aligning loan growth with core deposit growth over time<br>• Target loan-to-deposit ratio between 95% and 105%<br>Balance Sheet<br>Growth<br>• Modest NIM expansion in the current interest rate environment<br>• Continued net interest income growth due to NIM expansion and increased loan growth<br>• Dependent on pace of additional rate cuts and shape of the yield curve<br>Net Interest<br>Margin<br>• High-teen noninterest expense growth for full-year 2025 (excluding merger-related expenses)<br>• Continued investments in people and technology initiatives<br>• Provision expense aligned with loan growth and overall asset quality<br>Expenses<br>• Modest capital ratio expansion over time as loan growth expected to increase<br>• Ongoing evaluation of potential share repurchases based on valuation, capital levels, and other uses of capital<br>Capital<br>Levels
---
2025 Strategic Priorities<br>18<br>Return to More Normalized<br>Levels of Profitable Growth<br>Continue to Gain Loan and<br>Deposit Market Share<br>Leverage Technology to<br>Support Business Growth<br>Execute on M&A Integration<br>and Readiness Initiatives<br>• Well positioned given efforts to<br>optimize the balance sheet in<br>2024, including strong core<br>deposit growth and reduced<br>loan-to-deposit ratio<br>• Leverage increased loan demand<br>due to the more favorable interest<br>rate environment<br>• Continue to align loan growth with<br>core deposit growth over time<br>• Maintain strong credit quality<br>through consistent underwriting<br>standards and active credit<br>oversight<br>• Utilize the expanded branch<br>footprint, including two branches<br>from the FMCB acquisition and<br>anticipated opening of a de novo<br>branch in Lake Elmo, MN<br>• Focus on expanding targeted<br>verticals, including affordable<br>housing, women business leaders,<br>and cannabis<br>• Leverage affordable housing<br>expertise to grow client base<br>across the Twin Cities and<br>nationally<br>• Leverage marketplace disruption<br>in the Twin Cities to attract new<br>clients and top talent<br>• Implement upgraded retail and<br>small business online banking<br>solution<br>• Optimize recent technology<br>investments, including the nCino<br>commercial loan origination<br>system and new CRM platform, as<br>well as new AI tools to create<br>efficiencies and enhance the client<br>experience<br>• Successfully complete systems<br>integration of FMCB acquisition<br>• Evaluate additional M&A<br>opportunities that support BWB’s<br>business model and growth<br>outlook<br>• Leverage recent M&A experience<br>to optimize readiness and<br>execution of future M&A<br>opportunities
---
APPENDIX<br>19
---
2024 Strategic Priorities<br>20<br>Optimize Balance Sheet for<br>Longer Term Profitable Growth<br>Continue to Gain Loan and<br>Deposit Market Share<br>Generate Incremental<br>Operational Efficiencies While<br>Investing in the Business<br>Scale ERM Function and<br>Monitor Asset Quality Risks<br>• Opportunistically gather core<br>deposits and build high quality<br>lending relationships<br>• Grow loan balances in line with<br>core deposits over time<br>• Generate more profitable growth<br>in a normalized interest rate<br>environment<br>• Expand lending focus on high<br>quality affordable housing sector<br>• Execute on new C&I initiatives<br>through targeted verticals,<br>including a network of women<br>business leaders and<br>entrepreneurial operating system<br>implementers<br>• Identify M&A opportunities and<br>potential markets that enhance<br>BWB’s overall business model<br>• Identify opportunities across all<br>functions to improve operational<br>efficiency<br>• Make proactive investments to<br>scale the business and position for<br>longer term growth<br>• Implement key IT investments,<br>including new CRM platform and<br>upgraded retail and small business<br>online banking solution<br>• Continue to focus on scaling the<br>enterprise risk management<br>function<br>• Monitor the loan portfolio for signs<br>of credit weakness, especially in<br>CRE and multifamily portfolios<br>• Ongoing covenant testing and<br>assess repricing risk on maturing<br>loans<br>Full-Year Accomplishments<br>• Core deposit growth1 of 22.0%;<br>13.4% excluding FMCB<br>• Reduced loan-to-deposit ratio<br>from 100.4% to 94.7%<br>• Completed strategic acquisition of<br>FMCB<br>• C&I growth of 7.2%<br>• Launched a new CRM platform to<br>enhance the client experience and<br>create new efficiencies<br>• FY24 net charge-off ratio of 0.03%<br>• Well-reserved with allowance to<br>total loans of 1.35%<br>1 Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000
---
Interest Rate Sensitivity<br>21<br>Estimated Change in NII From<br>Immediate Interest Rate Shocks<br>+100 bps<br>-100 bps<br>Liability-sensitive balance sheet well positioned for lower interest rates and<br>a steepening yield curve<br>Loan Portfolio Considerations<br>• Loan portfolio most sensitive to changes in the 3- to 5-year portion of the<br>yield curve<br>• Loan portfolio to reprice higher even in a rates-down environment given<br>larger fixed-rate portfolio and smaller variable-rate portfolio<br>• $680 million of fixed- and adjustable-rate loans scheduled to reprice over<br>the next year<br>• Leveraged prepayment penalties on new loan originations to help<br>maintain benefit of higher rates over time<br>Funding Considerations<br>• Deposit base is more sensitive to changing interest rates<br>• Strong momentum in core deposit growth since March 2023<br>• Continue to supplement core deposits with wholesale funding to support<br>loan growth over time<br>• Brokered deposits generally include call options to protect net interest<br>margin as interest rates decline<br>-200 bps<br>(1.2)%<br>+2.1%<br>1Q24<br>+4.1%<br>(2.1)%<br>+3.3%<br>2Q24<br>+6.3%<br>(2.4)%<br>+3.1%<br>3Q24<br>+6.5%<br>(1.3)%<br>+3.0%<br>4Q23<br>+5.9%<br>(1.7)%<br>+3.1%<br>4Q24<br>+6.7%<br>+200 bps (1.7)% (1.5)% (3.2)% (4.4)% (3.1)%<br>Funding Mix Repricing Lower Following Recent Rate Cuts<br>• $1.5B of funding tied to short-term rates, including $1.2B of<br>immediately-adjustable deposits and $0.3B of derivative hedging<br>• $656M of other repricing opportunities, including time deposit<br>maturities over the next 12 months and callable brokered deposits<br>with rates over 4.50%
---
16% 21% 29%<br>13% 13% 8%<br>$96 $127<br>$172<br>$76 $80 $51<br>Less<br>Than<br>1 Year<br>1 to 2<br>Years<br>2 to 3<br>Years<br>3 to 4<br>Years<br>4 to 5<br>Years<br>5+<br>Years<br>21%<br>15% 18%<br>11% 16% 19%<br>$584<br>$406 $484<br>$313<br>$428 $507<br>Less<br>Than<br>1 Year<br>1 to 2<br>Years<br>2 to 3<br>Years<br>3 to 4<br>Years<br>4 to 5<br>Years<br>5+<br>Years<br>Loan Portfolio Repricing<br>22<br>Fixed,<br>70%<br>Variable,<br>14%<br>Adjustable,<br>16%<br>Loan Portfolio Mix<br>Fixed-Rate Portfolio<br>($2.7B)<br>Variable-Rate Portfolio<br>($545M)<br>Adjustable-Rate Portfolio<br>($603M)<br>Years to Maturity<br>• Large fixed-rate portfolio<br>provides support to total loan<br>yields in a rates-down<br>environment<br>• $584M of fixed-rate loans<br>maturing over the next year, with<br>a weighted average yield of<br>5.72%<br>Variable-Rate Loan Floors<br>• Small variable-rate portfolio<br>limits immediate repricing<br>pressure in a rates-down<br>environment<br>• 71% of variable-rate portfolio has<br>rate floors, with 86% of the floors<br>being above 5%<br>• 100% of variable-rate loans are<br>currently tied to SOFR or Prime<br>Adjustable-Rate<br>Repricing/Maturity Schedule<br>• Adjustable-rate loans likely to<br>reprice higher, even in a rates-down environment<br>• $96M of adjustable-rate loans<br>repricing or maturing over the<br>next year, with a weighted<br>average yield of 5.28%<br>Dollars in millions<br>WA<br>Yield 5.72% 4.75% 5.01% 5.35% 5.41% 4.23%<br>WA<br>Yield 5.28% 3.81% 4.87% 4.14% 5.73% 4.58%<br>3% 11% 19%<br>53%<br>14% $10<br>$42<br>$73<br>$205<br>$56<br>Below<br>4%<br>4%-5% 5%-6% 6%-7% Above<br>7%
---
High Quality Securities Portfolio<br>23<br>39% 38% 34% 31% 18%<br>22% 21%<br>22% 17%<br>16%<br>22% 21% 23% 21%<br>17%<br>16% 22%<br>17% 20% 21%<br>15%<br>$604 27% $633 $601<br>$665<br>$768<br>4Q23 1Q24 2Q24 3Q24 4Q24<br>Mortgage-Backed Securities Municipal Bonds<br>U.S. Treasuries<br>Corporate Securities<br>Securities Available for Sale Portfolio (dollars in millions)<br>AAA<br>43%<br>AA<br>30%<br>A<br>2%<br>BBB<br>10%<br>BB<br>1%<br>NR<br>14%<br>Rating Mix<br>Derivatives Portfolio Offsetting AOCI Impact (dollars in thousands)<br>$(44,512) $(49,418)<br>$23,988 $24,458<br>$(18,246) $(13,364)<br>4Q23 4Q24<br>MTM Securities MTM Derivatives Net Impact on AOCI1<br>• Acquired $93M of available-for-sale securities from FMCB with<br>a weighted-average yield of 4.35%<br>• No held-to-maturity securities<br>• Securities portfolio average duration of 6.0 years<br>• Average securities portfolio yield of 4.86%<br>• AOCI / Total Risk-Based Capital of 2.3% vs. peer bank<br>median of 5.7%2<br>1 Includes the tax-effected impact of $7,359 in 4Q23 and $5,390 in 4Q24<br>2 Includes publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion as of September 30, 2024 (Source: S&P Capital IQ)<br>Other
---
Ample Liquidity and Borrowing Capacity<br>24 1 Excludes $290M of pledged securities at December 31, 2024<br>Dollars in millions<br>11.5% 12.1% 11.3%<br>14.5% 13.2%<br>37.0% 35.5% 36.1%<br>34.2% 32.2%<br>$2,234 $2,249 $2,222<br>$2,290 $2,296<br>4Q23 1Q24 2Q24 3Q24 4Q24<br>Off-Balance Sheet Liquidity as a % of Assets<br>On-Balance Sheet Liquidity as a % of Assets<br>Liquidity Position with 1.9x Coverage of Uninsured Deposits Significantly Enhanced Liquidity Position Since 2022<br>Funding Source 12/31/2024 12/31/2022 Change<br>Cash and Cash Equivalents $ 189 $ 4 8 $ 141<br>Unpledged Securities1<br> 478 549 (71)<br>FHLB Capacity 483 391 9 2<br>FRB Discount Window 926 158 768<br>Unsecured Lines of Credit 200 208 (8)<br>Secured Line of Credit 20 26 (6)<br> Total $ 2,296 $ 1,380 $ 916<br>Available Balance
---
Reconciliation of Non-GAAP<br>Financial Measures<br>25 Dollars in thousands<br>December 31,<br>2023<br>March 31,<br>2024<br>June 30,<br>2024<br>September 30,<br>2024<br>December 31,<br>2024<br>Adjusted Diluted Earnings Per Common Share<br>Net Income Available to Common Shareholders $ 7,859 $ 6,818 $ 7,101 $ 7,662 $ 7,190<br>Add: Merger-related Expenses - - - 224 488<br>Less: Tax Impact - - - (53) (107)<br>Net Income Available to Common Shareholders,<br> Excluding Impact of Merger-related Expenses $ 7,859 $ 6,818 $ 7,101 $ 7,833 $ 7,571<br>Diluted Weighted Average Shares Outstanding 28,238,056 28,089,805 27,748,184 27,904,910 28,055,532<br>Adjusted Diluted Earnings Per Common Share $ 0.28 $ 0.24 $ 0.26 $ 0.28 $ 0.27<br>Return on Average Tangible Common Equity<br>Net Income Available to Common Shareholders $ 7,859 $ 6,818 $ 7,101 $ 7,662 $ 7,190<br>Average Shareholders' Equity $ 417,789 $ 428,248 $ 435,585 $ 443,077 $ 455,949<br>Less: Average Preferred Stock (66,514) (66,514) (66,514) (66,514) (66,514)<br>Average Common Equity 351,275 361,734 369,071 376,563 389,435<br>Less: Effects of Average Intangible Assets (2,819) (2,811) (2,802) (2,794) (4,412)<br>Average Tangible Common Equity $ 348,456 $ 358,923 $ 366,269 $ 373,769 $ 385,023<br>Return on Average Tangible Common Equity 8.95% 7.64% 7.80% 8.16% 7.43%<br>Adjusted Return on Average Tangible Common<br>Equity<br>Net Income Available to Common Shareholders,<br> Excluding Impact of Merger-related Expenses $ 7,859 $ 6,818 $ 7,101 $ 7,833 $ 7,571<br>Average Tangible Common Equity $ 348,456 $ 358,923 $ 366,269 $ 373,769 $ 385,023<br>Adjusted Return on Average Tangible<br> Common Equity 8.95% 7.64% 7.80% 8.34% 7.82%<br>As of and for the quarter ended,<br>December 31,<br>2023<br>March 31,<br>2024<br>June 30,<br>2024<br>September 30,<br>2024<br>December 31,<br>2024<br>Pre-Provision Net Revenue:<br>Noninterest Income $ 1,409 $ 1,550 $ 1,763 $ 1,522 $ 2,533<br>Less: (Gain) Loss on Sales of Securities 2 7 (93) (320) 2 8 -<br>Total Operating Noninterest Income 1,436 1,457 1,443 1,550 2,533<br>Plus: Net Interest Income 25,314 24,631 24,996 25,599 26,967<br>Net Operating Revenue $ 26,750 $ 26,088 $ 26,439 $ 27,149 $ 29,500<br>Noninterest Expense 15,740 15,189 15,539 15,760 $ 16,812<br>Total Operating Noninterest Expense $ 15,740 $ 15,189 $ 15,539 $ 15,760 $ 16,812<br>Pre-provision Net Revenue $ 11,010 $ 10,899 $ 10,900 $ 11,389 $ 12,688<br>Plus: Non-Operating Revenue Adjustments (27) 9 3 320 (28) -<br>Less: Provision (Recovery of) for Credit Losses (250) 750 600 - 2,175<br>Less: Provision for Income Taxes 2,360 2,411 2,505 2,686 2,309<br>Net Income $ 8,873 $ 7,831 $ 8,115 $ 8,675 $ 8,204<br>Average Assets $ 4,567,446 $ 4,592,838 $ 4,646,517 $ 4,709,804 $ 4,788,036<br>Pre-Provision Net Renveue Return on<br> Average Assets 0.96% 0.95% 0.94% 0.96% 1.05%<br>Adjusted Pre-Provision Net Revenue:<br>Net Operating Revenue $ 26,750 $ 26,088 $ 26,439 $ 27,149 $ 29,500<br>Noninterest Expense $ 15,740 $ 15,189 $ 15,539 $ 15,760 $ 16,812<br>Less: Merger-related Expenses - - - (224) (488)<br>Adjusted Total Operating Noninterest Expense $ 15,740 $ 15,189 $ 15,539 $ 15,536 $ 16,324<br>Adjusted Pre-Provision Net Revenue $ 11,010 $ 10,899 $ 10,900 $ 11,613 $ 13,176<br>Adjusted Pre-Provision Net Revenue Return on<br> Average Assets 0.96% 0.95% 0.94% 0.98% 1.09%<br>As of and for the quarter ended,
---
Reconciliation of Non-GAAP<br>Financial Measures<br>26 Dollars in thousands<br>December 31,<br>2023<br>March 31,<br>2024<br>June 30,<br>2024<br>September 30,<br>2024<br>December 31,<br>2024<br>Efficiency Ratio:<br>Noninterest Expense $ 15,740 $ 15,189 $ 15,539 $ 15,760 $ 16,812<br>Less: Amortization Intangible Assets (9) (9) (8) (9) (52)<br>Adjusted Noninterest Expense $ 15,731 $ 15,180 $ 15,531 $ 15,751 $ 16,760<br>Net Interest Income $ 25,314 $ 24,631 $ 24,996 $ 25,599 $ 26,967<br>Noninterest Income 1,409 1,550 1,763 1,522 2,533<br>Less: (Gain) Loss on Sales of Securities 2 7 (93) (320) 2 8 -<br>Adjusted Operating Revenue $ 26,750 $ 26,088 $ 26,439 $ 27,149 $ 29,500<br> Efficiency Ratio 58.8% 58.2% 58.7% 58.0% 56.8%<br>Adjusted Efficiency Ratio:<br>Noninterest Expense $ 15,740 $ 15,189 $ 15,539 $ 15,760 $ 16,812<br>Less: Amortization Intangible Assets (9) (9) (8) (9) (52)<br>Less: Merger-related Expenses - - - (224) (488)<br>Adjusted Noninterest Expense $ 15,731 $ 15,180 $ 15,531 $ 15,527 $ 16,272<br>Net Interest Income $ 25,314 $ 24,631 $ 24,996 $ 25,599 $ 26,967<br>Noninterest Income 1,409 1,550 1,763 1,522 2,533<br>Less: (Gain) Loss on Sales of Securities 2 7 (93) (320) 2 8 -<br>Adjusted Operating Revenue $ 26,750 $ 26,088 $ 26,439 $ 27,149 $ 29,500<br> Efficiency Ratio 58.8% 58.2% 58.7% 57.2% 55.2%<br>Adjusted Noninterest Expense to Average Assets:<br>Noninterest Expense $ 15,740 $ 15,189 $ 15,539 $ 15,760 $ 16,812<br>Less: Merger-related Expenses - - - (224) (488)<br>Adjusted Noninterest Expense $ 15,740 $ 15,189 $ 15,539 $ 15,536 $ 16,324<br>Average Assets $ 4,567,446 $ 4,592,838 $ 4,646,517 $ 4,703,804 $ 4,788,036<br>Adjusted Noninterest Expense to Average Assets 1.37% 1.33% 1.35% 1.31% 1.36%<br>As of and for the quarter ended,<br>December 31,<br>2023<br>March 31,<br>2024<br>June 30,<br>2024<br>September 30,<br>2024<br>December 31,<br>2024<br>Adjusted Return on Average Assets<br>Net Income $ 8,873 $ 7,831 $ 8,115 $ 8,675 $ 8,204<br>Add: Merger-related Expenses - - - 224 488<br>Less: Tax Impact - - - (53) (107)<br>Net Income, Excluding Impact of Merger-<br> Related Expenses $ 8,873 $ 7,831 $ 8,115 $ 8,846 $ 8,585<br>Average Assets $ 4,567,446 $ 4,592,838 $ 4,646,517 $ 4,703,804 $ 4,788,036<br>Adjusted Return on Average Assets 0.77% 0.69% 0.70% 0.75% 0.71%<br>Tangible Common Equity / Tangible Assets<br>Total Shareholders' Equity $ 425,515 $ 433,611 $ 439,241 $ 452,200 $ 457,935<br>Less: Preferred Stock (66,514) (66,514) (66,514) (66,514) (66,514)<br>Total Common Shareholders' Equity 359,001 367,097 372,727 385,686 391,421<br>Less: Intangible Assets (2,814) (2,806) (2,797) (2,789) (19,832)<br>Tangible Common Equity $ 356,187 $ 364,291 $ 369,930 $ 382,897 $ 371,589<br>Total Assets $ 4,611,990 $ 4,723,109 $ 4,687,035 $ 4,691,517 $ 5,066,242<br>Less: Intangible Assets (2,814) (2,806) (2,797) (2,789) (19,832)<br>Tangible Assets $ 4,609,176 $ 4,720,303 $ 4,684,238 $ 4,688,728 $ 5,046,410<br>Tangible Common Equity / Tangible Assets 7.73% 7.72% 7.90% 8.17% 7.36%<br>Core Loan Yield<br>Loan Interest Income (Tax-Equivalent Basis) $ 50,022 $ 49,858 $ 51,592 $ 52,118 $ 52,078<br>Less: Loan Fees (751) (608) (767) (968) (747)<br>Core Loan Interest Income $ 49,271 $ 49,250 $ 50,825 $ 51,150 $ 51,331<br>Average Loans $ 3,726,126 $ 3,729,355 $ 3,771,768 $ 3,721,654 $ 3,730,532<br>Core Loan Yield 5.25% 5.31% 5.42% 5.47% 5.47%<br>As of and for the quarter ended,
---
Reconciliation of Non-GAAP Financial<br>Measures<br>27<br>Tangible Book Value Per Share<br>December 31,<br>2016<br>March 31,<br>2017<br>June 30,<br>2017<br>September 30,<br>2017<br>December 31,<br>2017<br>March 31,<br>2018<br>June 30,<br>2018<br>September 30,<br>2018<br>December 31,<br>2018<br>March 31,<br>2019<br>Book Value Per Common Share $ 4.69 $ 4.91 $ 5.23 $ 5.43 $ 5.56 $ 6.62 $ 6.85 $ 7.01 $ 7.34 $ 7.70<br>Less: Effects of Intangible Assets (0.16) (0.16) (0.16) (0.16) (0.16) (0.13) (0.12) (0.12) (0.12) (0.12)<br>Tangible Book Value Per Common Share $ 4.53 $ 4.75 $ 5.07 $ 5.27 $ 5.40 $ 6.49 $ 6.73 $ 6.89 $ 7.22 $ 7.58<br>Total Common Shares 24,589,861 24,589,861 24,589,861 24,629,861 24,679,861 30,059,374 30,059,374 30,059,374 30,097,274 30,097,674<br>Tangible Book Value Per Share<br>June 30,<br>2019<br>September 30,<br>2019<br>December 31,<br>2019<br>March 31,<br>2020<br>June 30,<br>2020<br>September 30,<br>2020<br>December 31,<br>2020<br>March 31,<br>2021<br>June 30,<br>2021<br>September 30,<br>2021<br>Book Value Per Common Share $ 7.90 $ 8.20 $ 8.45 $ 8.61 $ 8.92 $ 9.25 $ 9.43 $ 9.92 $ 10.33 $ 10.73<br>Less: Effects of Intangible Assets (0.12) (0.12) (0.12) (0.12) (0.12) (0.12) (0.12) (0.12) (0.12) (0.11)<br>Tangible Book Value Per Common Share $ 7.78 $ 8.08 $ 8.33 $ 8.49 $ 8.80 $ 9.13 $ 9.31 $ 9.80 $ 10.21 $ 10.62<br>Total Common Shares 28,986,729 28,781,162 28,973,572 28,807,375 28,837,560 28,710,775 28,143,493 28,132,929 28,162,777 28,066,822<br>Tangible Book Value Per Share<br>December 31,<br>2021<br>March 31,<br>2022<br>June 30,<br>2022<br>September 30,<br>2022<br>December 31,<br>2022<br>March 31,<br>2023<br>June 30,<br>2023<br>September 30,<br>2023<br>December 31,<br>2023<br>March 31,<br>2024<br>Book Value Per Common Share $ 11.09 $ 11.12 $ 11.14 $ 11.44 $ 11.80 $ 12.05 $ 12.25 $ 12.47 $ 12.94 $ 13.30<br>Less: Effects of Intangible Assets (0.11) (0.11) (0.11) (0.11) (0.11) (0.10) (0.10) (0.10) (0.10) (0.10)<br>Tangible Book Value Per Common Share $ 10.98 $ 11.01 $ 11.03 $ 11.33 $ 11.69 $ 11.95 $ 12.15 $ 12.37 $ 12.84 $ 13.20<br>Total Common Shares 28,206,566 28,150,389 27,677,372 27,587,978 27,751,950 27,845,244 27,973,995 28,015,505 27,748,965 27,589,827<br>Tangible Book Value Per Share<br>June 30,<br>2024<br>September 30,<br>2024<br>December 31,<br>2024<br>Book Value Per Common Share $ 13.63 $ 14.06 $ 14.21<br>Less: Effects of Intangible Assets (0.10) (0.10) (0.72)<br>Tangible Book Value Per Common Share $ 13.53 $ 13.96 $ 13.49<br>Total Common Shares 27,348,049 27,425,690 27,552,449<br>As of and for the quarter ended,<br>As of and for the quarter ended,<br>As of and for the quarter ended,<br>As of and for the quarter ended,
---