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

April 24, 2024

Date of Report

(Date of earliest event reported)

BRIDGEWATER BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

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

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

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

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

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

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

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

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

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

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

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

Emerging growth company ☐

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

Item 2.02 R esults of Operations and Financial Condition.

On April 24, 2024, Bridgewater Bancshares, Inc. (the “Company”) issued a press release announcing its financial results for the three months ended March 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 April 24, 2024, in its 2024 first 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 June 3, 2024, to shareholders of record of the Series A Preferred Stock at the close of business on May 15, 2024.

Item 9.01 Financial Statements and Exhibits.

(d)****Exhibits

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

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


	Bridgewater Bancshares, Inc.


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

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

April 24, 2024

Bridgewater Bancshares, Inc. Announces First Quarter 2024 Net Income of $7.8 Million, $0.24 Diluted Earnings Per Common Share

First Quarter 2024 Highlights

●	Tangible book value per share^(1)^ of $13.20 for the first quarter of 2024, an increase of $0.37, or 11.5% annualized, compared to $12.84 for the fourth quarter of 2023.
●	Repurchased 193,802 shares of common stock at a weighted average price of $11.75 per share, for a total of $2.3 million.
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●	Gross loans increased $59.9 million, or 6.5% annualized, from the fourth quarter of 2023.
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●	Loan-to-deposit ratio of 99.4%, compared to 100.4% at December 31, 2023.
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●	Deposits increased by $97.3 million, or 10.5% annualized, from the fourth quarter of 2023, including an increase in core deposits^(2)^ of $90.3 million, or 14.3% annualized.
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●	Net interest margin (on a fully tax-equivalent basis) of 2.24%, compared to 2.27% in the fourth quarter of 2023.
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●	Efficiency ratio^(1)^ of 58.2%, compared to 58.8% for the fourth quarter of 2023.
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●	Noninterest expense declined $551,000, or 3.5%, from the fourth quarter of 2023. Annualized noninterest expense to average assets was 1.33%, compared to 1.37% for the fourth quarter of 2023.
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●	A provision for credit losses on loans of $850,000 was recorded to support loan growth in the first quarter of 2024. The allowance for credit losses on loans to total loans was 1.36% at both March 31, 2024 and December 31, 2023.
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●	Annualized net loan charge-offs as a percentage of average loans of 0.00% for the first quarter of 2024, compared to 0.01% for the fourth quarter of 2023.
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●	Nonperforming assets to total assets of 0.01% at March 31, 2024, compared to 0.02% at December 31, 2023.
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(1)	Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.
(2)	Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000.
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St. Louis Park, MN – Bridgewater Bancshares, Inc. (Nasdaq: BWB) (the Company), the parent company of Bridgewater Bank (the Bank), today announced net income of $7.8 million for the first quarter of 2024, compared to $8.9 million for the fourth quarter of 2023, and $11.6 million for the first quarter of 2023. Earnings per diluted common share were $0.24 for the first quarter of 2024, compared to $0.28 for the fourth quarter of 2023, and $0.37 for the first quarter of 2023.

“Bridgewater’s 2024 first quarter results were highlighted by improved balance sheet growth, including the loan portfolio and core deposits,” said Chairman, Chief Executive Officer, and President, Jerry Baack. “We were encouraged by an uptick in loan balances due to the increased loan demand and pipelines we began seeing in late 2023. Deposit balances, including core deposits, also rebounded nicely during the quarter, resulting in our loan-to-deposit ratio dropping below 100% for the first time since the first quarter of 2022.

“During the first quarter, we also saw net interest margin compression continue to slow, well-controlled expenses, superb asset quality, and the 29th consecutive quarter of tangible book value per share growth. While the economic environment continues to evolve, we remain optimistic about our outlook as we execute on our proven business model and continue to provide a differentiated level of service to our clients.”

Key Financial Measures


		As of and for the Three Months Ended
		March 31,			December 31,			March 31,
	****	2024			2023			2023
Per Common Share Data
Basic Earnings Per Share		$	0.25		$	0.28		$	0.38
Diluted Earnings Per Share			0.24			0.28			0.37
Book Value Per Share			13.30			12.94			12.05
Tangible Book Value Per Share ^(1)^			13.20			12.84			11.95

Financial Ratios
Return on Average Assets ^(2)^			0.69	%		0.77	%		1.07	%
Pre-Provision Net Revenue Return on Average Assets ^(1)(2)^			0.95			0.96			1.49
Return on Average Shareholders' Equity ^(2)^			7.35			8.43			11.70
Return on Average Tangible Common Equity^(1)(2)^			7.64			8.95			12.90
Net Interest Margin^(3)^			2.24			2.27			2.72
Core Net Interest Margin ^(1)(3)^			2.18			2.21			2.62
Cost of Total Deposits			3.32			3.19			2.01
Cost of Funds			3.34			3.23			2.41
Efficiency Ratio^(1)^			58.2			58.8			45.9
Noninterest Expense to Average Assets ^(2)^			1.33			1.37			1.30
Tangible Common Equity to Tangible Assets ^(1)^			7.72			7.73			7.23
Common Equity Tier 1 Risk-based Capital Ratio (Consolidated) ^(4)^			9.21			9.16			8.48

Balance Sheet and Asset Quality (dollars in thousands)
Total Assets		$	4,723,109		$	4,611,990		$	4,602,899
Total Loans, Gross			3,784,205			3,724,282			3,684,360
Deposits			3,807,225			3,709,948			3,411,123
Loan to Deposit Ratio			99.4	%		100.4	%		108.0	%
Net Loan Charge-Offs (Recoveries) to Average Loans ^(2)^			0.00			0.01			0.00
Nonperforming Assets to Total Assets^(5)^			0.01			0.02			0.02
Allowance for Credit Losses to Total Loans			1.36			1.36			1.36

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

Net Interest Margin and Net Interest Income

Net interest margin (on a fully tax-equivalent basis) for the first quarter of 2024 was 2.24%, a three basis point decline from 2.27% in the fourth quarter of 2023 and a 48 basis point decline from 2.72% in the first 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 2.18% for the first quarter of 2024, a three basis point decline from 2.21% in the fourth quarter of 2023, and a 44 basis point decline from 2.62% in the first quarter of 2023.

●	The linked-quarter and year-over-year declines in the margin were primarily due to higher funding costs, offset partially by higher earning asset yields.

Net interest income was $24.6 million for the first quarter of 2024, a decrease of $683,000 from $25.3 million in the fourth quarter of 2023, and a decrease of $3.9 million from $28.6 million in the first quarter of 2023.

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

Interest income was $58.7 million for the first quarter of 2024, an increase of $116,000 from $58.6 million in the fourth quarter of 2023, and an increase of $6.7 million from $52.0 million in the first quarter of 2023.

●	The yield on interest earning assets (on a fully tax-equivalent basis) was 5.28% in the first quarter of 2024, compared to 5.22% in the fourth quarter of 2023 and 4.91% in the first quarter of 2023.
●	The linked-quarter increase in the yield on interest earning assets was primarily due to the purchase of higher yielding securities and loans repricing at yields accretive to the existing portfolio.
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●	The year-over-year increase in the yield on interest earning assets was primarily due to growth and repricing of the loan and securities portfolios in the rising interest rate environment.
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●	Loan interest income and loan fees remain the primary contributing factors to the changes in the yield on interest earning assets. The aggregate loan yield increased to 5.38% in the first quarter of 2024, five basis points higher than 5.33% in the fourth quarter of 2023, and 32 basis points higher than 5.06% in the first quarter of 2023.
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●	Despite the overall decrease in fee recognition, the core loan yield continues to rise as new loan originations and the existing portfolio reprice in the higher rate environment.
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A summary of interest and fees recognized on loans for the periods indicated is as follows:


	Three Months Ended
	March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
Interest	5.31	%	5.25	%	5.16	%	5.09	%	4.95	%
Fees	0.07		0.08		0.10		0.10		0.11
Yield on Loans	5.38	%	5.33	%	5.26	%	5.19	%	5.06	%

Interest expense was $34.0 million for the first quarter of 2024, an increase of $799,000 from $33.2 million in the fourth quarter of 2023, and an increase of $10.6 million from $23.4 million in the first quarter of 2023.

●	The cost of interest bearing liabilities was 4.03% in the first quarter of 2024, compared to 3.97% in the fourth quarter of 2023 and 3.03% in the first quarter of 2023.
●	The linked-quarter increase in the cost of interest bearing liabilities was primarily due to higher rates paid on deposits and changes in the deposit mix.
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●	The year-over-year increase in the cost of interest bearing liabilities was primarily due to deposit repricing, which resulted from a rapid increase in market interest rates.
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Interest expense on deposits was $30.2 million for the first quarter of 2024, an increase of $742,000 from $29.4 million in the fourth quarter of 2023, and an increase of $13.8 million from $16.4 million in the first quarter of 2023.

●	The cost of total deposits was 3.32% in the first quarter of 2024, compared to 3.19% in the fourth quarter of 2023 and 2.01% in the first quarter of 2023.
●	The linked-quarter increase in the cost of total deposits was primarily due to client demands for higher interest rates, increased competition, and changes in the mix of deposits.
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●	The year-over-year increase in the cost of total deposits was primarily due to upward repricing of the deposit portfolio in the higher interest rate environment.
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Provision for Credit Losses

The provision for credit losses on loans was $850,000 for the first quarter of 2024, compared to $0 for the fourth quarter of 2023 and $1.5 million for the first quarter of 2023.

●	The provision for credit losses on loans recorded in the first quarter of 2024 was primarily attributable to the increased growth of the loan portfolio.
●	The allowance for credit losses on loans to total loans was 1.36% at each of March 31, 2024, December 31, 2023 and March 31, 2023.
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The provision for credit losses for off-balance sheet credit exposures was a negative provision of $100,000 for the first quarter of 2024, compared to a negative provision of $250,000 for the fourth quarter of 2023 and a negative provision of $875,000 for the first quarter of 2023.

●	The negative provision during the first quarter of 2024 was due to a reduction in outstanding unfunded commitments primarily attributable to the migration to funded loans, as well as a moderation in volume of newly originated projects with unfunded commitments.

Noninterest Income

Noninterest income was $1.6 million for the first quarter of 2024, an increase of $141,000 from $1.4 million for the fourth quarter of 2023 and a decrease of $393,000 from $1.9 million for the first quarter of 2023.

●	The linked-quarter increase was primarily due to a net gain on sale of securities and an increase in other income, offset partially by lower letter of credit fees.
●	The year-over-year decrease was primarily due to lower letter of credit fees and $299,000 of FHLB prepayment income recognized in the previous year which did not reoccur, offset partially by a net gain on sale of securities.
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Noninterest Expense

Noninterest expense was $15.2 million for the first quarter of 2024, a decrease of $551,000 from $15.7 million for the fourth quarter of 2023 and an increase of $1.1 million from $14.1 million for the first quarter of 2023.

●	The linked-quarter decrease was primarily due to decreases in salaries and employee benefits, FDIC insurance assessment and other expense, offset partially by an increase in professional and consulting expense.
●	The year-over-year increase was primarily attributable to increases in salaries and employee benefits, industry-wide increases in the FDIC insurance assessment, higher professional and consulting fees, derivative collateral fees and information technology and telecommunications, offset partially by decreases in occupancy and equipment.
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●	The efficiency ratio, a non-GAAP financial measure, was 58.2% for the first quarter of 2024, compared to 58.8% for the fourth quarter of 2023, and 45.9% for the first quarter of 2023.
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●	The Company had 255 full-time equivalent employees at both March 31, 2024 and December 31, 2023, compared to 246 employees at March 31, 2023.
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Income Taxes

The effective combined federal and state income tax rate for the first quarter of 2024 was 23.5%, an increase from 21.0% for the fourth quarter of 2023 and a decrease from 26.4% for the first quarter of 2023.

●	The linked-quarter increase in the effective tax rate was primarily due to the timing and delivery of tax credits in the fourth quarter of 2023.

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Balance Sheet

Loans


(dollars in thousands)	March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
Commercial	$	483,069	$	464,061	$	459,854	$	460,061	$	455,156
Construction and Land Development		200,970		232,804		294,818		351,069		312,277
1 - 4 Family Construction		65,606		65,087		64,463		69,648		85,797
Real Estate Mortgage:
1 - 4 Family Mortgage		417,773		402,396		404,716		400,708		380,210
Multifamily		1,389,345		1,388,541		1,378,669		1,314,524		1,320,081
CRE Owner Occupied		182,589		175,783		159,485		159,088		158,650
CRE Nonowner Occupied		1,035,702		987,306		951,263		971,532		962,671
Total Real Estate Mortgage Loans		3,025,409		2,954,026		2,894,133		2,845,852		2,821,612
Consumer and Other		9,151		8,304		9,003		9,581		9,518
Total Loans, Gross		3,784,205		3,724,282		3,722,271		3,736,211		3,684,360
Allowance for Credit Losses on Loans		(51,347)		(50,494)		(50,585)		(50,701)		(50,148)
Net Deferred Loan Fees		(6,356)		(6,573)		(7,222)		(7,718)		(8,735)
Total Loans, Net	$	3,726,502	$	3,667,215	$	3,664,464	$	3,677,792	$	3,625,477

Total gross loans at March 31, 2024 were $3.78 billion, an increase of $59.9 million, or 6.5% annualized, over total gross loans of $3.72 billion at December 31, 2023, and an increase of $99.8 million, or 2.7%, over total gross loans of $3.68 billion at March 31, 2023.

●	The increase in the loan portfolio during the first quarter of 2024 was due to increased loan demand and originations, partially offset by a decrease in construction and land development due to migration out of this category as deals complete the construction phase.

Deposits


(dollars in thousands)	March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
Noninterest Bearing Transaction Deposits	$	698,432	$	756,964	$	754,297	$	751,217	$	742,198
Interest Bearing Transaction Deposits		783,736		692,801		780,863		719,488		630,037
Savings and Money Market Deposits		979,773		935,091		872,534		860,613		913,013
Time Deposits		352,510		300,651		265,737		271,783		266,213
Brokered Deposits		992,774		1,024,441		1,002,078		974,831		859,662
Total Deposits	$	3,807,225	$	3,709,948	$	3,675,509	$	3,577,932	$	3,411,123

Total deposits at March 31, 2024 were $3.81 billion, an increase of $97.3 million, or 10.5% annualized, over total deposits of $3.71 billion at December 31, 2023, and an increase of $396.1 million, or 11.6%, over total deposits of $3.41 billion at March 31, 2023.

●	Core deposits, defined as total deposits excluding brokered deposits and time deposits greater than $250,000, increased $90.3 million, or 14.3% annualized, from the fourth quarter of 2023. Growth in core deposits was primarily due to increased balances of existing clients and new client acquisitions. Based on the nature of these inflows, management believes core deposits could fluctuate in future periods as deposit growth is not always linear.
●	Brokered deposits, which declined for the first time since the fourth quarter of 2021, continue to be used as a supplemental funding source, as needed.
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●	Uninsured deposits were 26% of total deposits as of March 31, 2024 and 24% of total deposits as of December 31, 2023.
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Liquidity

Total on- and off-balance sheet liquidity was $2.25 billion as of March 31, 2024, compared to $2.23 billion at December 31, 2023 and $1.92 billion at March 31, 2023.


Primary Liquidity—On-Balance Sheet	****	March 31, 2024		****	December 31, 2023		****	September 30, 2023		****	June 30, 2023			March 31, 2023
(dollars in thousands)										****
Cash and Cash Equivalents		$	105,784		$	96,594		$	77,617		$	138,618		$	177,116
Securities Available for Sale			633,282			604,104			553,076			538,220			559,430
Less: Pledged Securities			(169,479)			(170,727)			(164,277)			(236,206)			(234,452)
Total Primary Liquidity		$	569,587		$	529,971		$	466,416		$	440,632		$	502,094
Ratio of Primary Liquidity to Total Deposits			15.0	%		14.3	%		12.7	%		12.3	%		14.7	%

Secondary Liquidity—Off-Balance Sheet Borrowing Capacity	****												****
Net Secured Borrowing Capacity with the FHLB		$	446,801		$	498,736		$	516,501		$	400,792		$	246,795
Net Secured Borrowing Capacity with the Federal Reserve Bank			1,006,010			979,448			1,022,128			986,644			990,685
Unsecured Borrowing Capacity with Correspondent Lenders			200,000			200,000			150,000			108,000			158,000
Secured Borrowing Capacity with Correspondent Lender			26,250			26,250			26,250			26,250			26,250
Total Secondary Liquidity		$	1,679,061		$	1,704,434		$	1,714,879		$	1,521,686		$	1,421,730
Total Primary and Secondary Liquidity		$	2,248,648		$	2,234,405		$	2,181,295		$	1,962,318		$	1,923,824
Ratio of Primary and Secondary Liquidity to Total Deposits			59.1	%		60.2	%		59.3	%		54.8	%		56.4	%

Asset Quality

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

●	Annualized net charge-offs as a percentage of average loans were 0.00% for the first quarter of 2024, 0.01% for the fourth quarter of 2023, and 0.00% for the first quarter of 2023.
●	At March 31, 2024, the Company’s nonperforming assets, which include nonaccrual loans, loans past due 90 days and still accruing, and foreclosed assets, were $269,000, or 0.01% of total assets, compared to $919,000, or 0.02%, of total assets at December 31, 2023, and $809,000, or 0.02% of total assets at March 31, 2023.
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●	Loans with potential weaknesses that warrant a watchlist risk rating at March 31, 2024 totaled $21.6 million, compared to $26.5 million at December 31, 2023, and $27.6 million at March 31, 2023.
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●	Loans that warranted a substandard risk rating at March 31, 2024 totaled $33.8 million, compared to $35.9 million at December 31, 2023, and $36.3 million at March 31, 2023.
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Capital

Total shareholders’ equity at March 31, 2024 was $433.6 million, an increase of $8.1 million, or 1.9%, compared to total shareholders’ equity of $425.5 million at December 31, 2023, and an increase of $31.6 million, or 7.9%, over total shareholders’ equity of $402.0 million at March 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 preferred stock dividends and stock repurchases.
●	The year-over-year increase was 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, preferred stock dividends, and stock repurchases.
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●	The Common Equity Tier 1 Risk-Based Capital Ratio was 9.21% at March 31, 2024, compared to 9.16% at December 31, 2023 and 8.48% at March 31, 2023.
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●	Tangible common equity as a percentage of tangible assets, a non-GAAP financial measure, was 7.72% at March 31, 2024, compared to 7.73% at December 31, 2023, and 7.23% at March 31, 2023.
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Tangible book value per share, a non-GAAP financial measure, was $13.20 as of March 31, 2024, an increase of 2.9% from $12.84 as of December 31, 2023, and an increase of 10.5% from $11.95 as of March 31, 2023.

●	The Company has increased tangible book value per share each of the past 29 quarters.

During the first quarter of 2024, the Company repurchased 193,802 shares of its common stock. Shares were repurchased at a weighted average price of $11.75 per share, for a total of $2.3 million.

●	The Company has $18.2 million remaining under its current share repurchase authorization.

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

Page 6 of 16

depositary share, each representing a 1/100th interest in a share of the Series A Preferred Stock (Nasdaq: BWBBP), is payable on June 3, 2024 to shareholders of record of the Series A Preferred Stock at the close of business on May 15, 2024.

Conference Call and Webcast

The Company will host a conference call to discuss its first quarter 2024 financial results on Thursday, April 25, 2024 at 8:00 a.m. Central Time. The conference call can be accessed by dialing 844-481-2913 and requesting to join the Bridgewater Bancshares earnings call. To listen to a replay of the conference call via phone, please dial 877-344-7529 and enter access code 8126492. The replay will be available through May 2, 2024. The conference call will also be available via a live webcast on the Investor Relations section of the Company’s website, investors.bridgewaterbankmn.com, and archived for replay.

About the Company

Bridgewater Bancshares, Inc. (Nasdaq: BWB) is a St. Louis Park, Minnesota-based financial holding company. Bridgewater's banking subsidiary, Bridgewater Bank, is a premier, full-service Twin Cities bank dedicated to serving the diverse needs of commercial real estate investors, entrepreneurs, business clients and successful individuals. By pairing a range of deposit, lending, and business services solutions with a responsive service model, Bridgewater has seen continuous growth and profitability. With total assets of $4.7 billion and seven branches as of March 31, 2024, Bridgewater is considered one of the largest locally led banks in the State of Minnesota, and has received numerous awards for its growth, banking services, and esteemed corporate culture.

Use of Non-GAAP financial measures

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

Forward-Looking Statements

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

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: interest rate risk, including the effects of significant rate increases by the Federal Reserve since 2020; fluctuations in the values of the securities held in our securities portfolio, including as the result of changes in interest rates; business and economic conditions generally and in the financial services industry, nationally and within our market area, including high rates of inflation and possible recession; the effects of developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in recent bank failures; loan concentrations in our portfolio; the overall health of the local and national real estate market; our ability to successfully manage credit risk; our ability to maintain an adequate level of allowance for credit losses on loans; new or revised accounting standards; the concentration of large loans to certain borrowers; the concentration of large deposits from certain clients, who have balances above current FDIC insurance limits; our ability to successfully manage liquidity risk, which may increase our dependence on non-core funding sources such as brokered deposits, and negatively impact our cost of funds; our ability to raise additional capital to implement our business plan; our ability to implement our growth strategy and manage costs effectively; the composition of our senior leadership team and our ability to attract and retain key personnel; talent and labor shortages and high rates of employee turnover; the occurrence of fraudulent activity, breaches or failures of our or our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; interruptions involving our information

Page 7 of 16

technology and telecommunications systems or third-party servicers; competition in the financial services industry, including from nonbank competitors such as credit unions and “fintech” companies; the effectiveness of our risk management framework; the commencement and outcome of litigation and other legal proceedings and regulatory actions against us; the impact of recent and future legislative and regulatory changes, including in response to the recent bank failures; risks related to climate change and the negative impact it may have on our customers and their businesses; the imposition of other governmental policies impacting the value of products produced by our commercial borrowers; severe weather, natural disasters, wide spread disease or pandemics, acts of war or terrorism or other adverse external events, including the ongoing Israeli-Palestinian conflict and the Russian invasion of Ukraine; potential impairment to the goodwill the Company recorded in connection with our past acquisition; changes to U.S. or state tax laws, regulations and guidance, including the 1% excise tax on stock buybacks by publicly traded companies; potential changes in federal policy and at regulatory agencies as a result of the upcoming 2024 presidential election; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission.

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

Page 8 of 16

Bridgewater Bancshares, Inc. and Subsidiaries Financial Highlights

(dollars in thousands, except share data)


		As of and for the Three Months Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(dollars in thousands)	****	2024		****	2023		****	2023		****	2023		****	2023		****
Income Statement
Net Interest Income		$	24,631		$	25,314		$	25,421		$	25,872		$	28,567
Provision for (Recovery of) Credit Losses			750			(250)			(600)			50			625
Noninterest Income			1,550			1,409			1,726			1,415			1,943
Noninterest Expense			15,189			15,740			15,237			14,274			14,069
Net Income			7,831			8,873			9,629			9,816			11,642
Net Income Available to Common Shareholders			6,818			7,859			8,616			8,802			10,629

Per Common Share Data
Basic Earnings Per Share		$	0.25		$	0.28		$	0.31		$	0.32		$	0.38
Diluted Earnings Per Share			0.24			0.28			0.30			0.31			0.37
Book Value Per Share			13.30			12.94			12.47			12.25			12.05
Tangible Book Value Per Share ^(1)^			13.20			12.84			12.37			12.15			11.95
Basic Weighted Average Shares Outstanding			27,691,401			27,870,430			27,943,409			27,886,425			27,726,894
Diluted Weighted Average Shares Outstanding			28,089,805			28,238,056			28,311,778			28,198,739			28,490,046
Shares Outstanding at Period End			27,589,827			27,748,965			28,015,505			27,973,995			27,845,244

Financial Ratios
Return on Average Assets ^(2)^			0.69	%		0.77	%		0.85	%		0.88	%		1.07	%
Pre-Provision Net Revenue Return on Average Assets ^(1)(2)^			0.95			0.96			1.01			1.16			1.49
Return on Average Shareholders' Equity ^(2)^			7.35			8.43			9.23			9.69			11.70
Return on Average Tangible Common Equity ^(1)(2)^			7.64			8.95			9.92			10.48			12.90
Net Interest Margin^(3)^			2.24			2.27			2.32			2.40			2.72
Core Net Interest Margin ^(1)(3)^			2.18			2.21			2.24			2.31			2.62
Cost of Total Deposits			3.32			3.19			2.99			2.66			2.01
Cost of Funds			3.34			3.23			3.10			2.91			2.41
Efficiency Ratio^(1)^			58.2			58.8			56.1			52.3			45.9
Noninterest Expense to Average Assets ^(2)^			1.33			1.37			1.34			1.28			1.30

Balance Sheet
Total Assets		$	4,723,109		$	4,611,990		$	4,557,070		$	4,603,185		$	4,602,899
Total Loans, Gross			3,784,205			3,724,282			3,722,271			3,736,211			3,684,360
Deposits			3,807,225			3,709,948			3,675,509			3,577,932			3,411,123
Total Shareholders' Equity			433,611			425,515			415,960			409,126			402,006
Loan to Deposit Ratio			99.4	%		100.4	%		101.3	%		104.4	%		108.0	%
Core Deposits to Total Deposits ^(4)^			69.3			68.7			70.3			70.3			72.4
Uninsured Deposits to Total Deposits			26.0			24.3			22.2			22.1			24.0

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

Capital Ratios (Consolidated) ^(6)^
Tier 1 Leverage Ratio			9.66	%		9.57	%		9.62	%		9.47	%		9.41	%
Common Equity Tier 1 Risk-based Capital Ratio			9.21			9.16			9.07			8.72			8.48
Tier 1 Risk-based Capital Ratio			10.83			10.79			10.69			10.33			10.08
Total Risk-based Capital Ratio			14.00			13.97			13.88			13.50			13.25
Tangible Common Equity to Tangible Assets ^(1)^			7.72			7.73			7.61			7.39			7.23

(1)	Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.
(2)	Annualized.
---	---
(3)	Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of 21%.
---	---

Page 9 of 16

(4)	Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000.
(5)	Nonperforming assets are defined as nonaccrual loans plus 90 days past due and still accruing plus foreclosed assets.
---	---
(6)	Preliminary data. Current period subject to change prior to filings with applicable regulatory agencies.
---	---

Page 10 of 16

Bridgewater Bancshares, Inc. and Subsidiaries

Consolidated Balance Sheets

(dollars in thousands, except share data)


	March 31,			December 31,			September 30,			June 30,			March 31,
	2024		****	2023		****	2023		****	2023		****	2023
	(Unaudited)						(Unaudited)			(Unaudited)			(Unaudited)
Assets
Cash and Cash Equivalents	$	143,355		$	128,562		$	124,358		$	177,101		$	209,192
Bank-Owned Certificates of Deposit		—			—			1,225			1,225			1,225
Securities Available for Sale, at Fair Value		633,282			604,104			553,076			538,220			559,430
Loans, Net of Allowance for Credit Losses		3,726,502			3,667,215			3,664,464			3,677,792			3,625,477
Federal Home Loan Bank (FHLB) Stock, at Cost		17,195			17,097			17,056			21,557			28,632
Premises and Equipment, Net		48,299			48,886			49,331			49,710			47,801
Accrued Interest		16,696			16,697			15,182			13,822			13,377
Goodwill		2,626			2,626			2,626			2,626			2,626
Other Intangible Assets, Net		180			188			197			206			240
Bank-Owned Life Insurance		34,778			34,477			34,209			33,958			33,719
Other Assets		100,196			92,138			95,346			86,968			81,180
Total Assets	$	4,723,109		$	4,611,990		$	4,557,070		$	4,603,185		$	4,602,899

Liabilities and Equity
Liabilities
Deposits:
Noninterest Bearing	$	698,432		$	756,964		$	754,297		$	751,217		$	742,198
Interest Bearing		3,108,793			2,952,984			2,921,212			2,826,715			2,668,925
Total Deposits		3,807,225			3,709,948			3,675,509			3,577,932			3,411,123
Federal Funds Purchased		—			—			—			195,000			437,000
Notes Payable		13,750			13,750			13,750			13,750			13,750
FHLB Advances		317,000			319,500			294,500			262,000			197,000
Subordinated Debentures, Net of Issuance Costs		79,383			79,288			79,192			79,096			79,001
Accrued Interest Payable		4,405			5,282			3,816			2,974			3,257
Other Liabilities		67,735			58,707			74,343			63,307			59,762
Total Liabilities		4,289,498			4,186,475			4,141,110			4,194,059			4,200,893

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 March 31, 2024 (unaudited), December 31, 2023, September 30, 2023 (unaudited), June 30, 2023 (unaudited), and March 31, 2023 (unaudited)		66,514			66,514			66,514			66,514			66,514
Common Stock- $0.01 par value; Authorized 75,000,000
Common Stock - Issued and Outstanding 27,589,827 at March 31, 2024 (unaudited), 27,748,965 at December 31, 2023, 28,015,505 at September 30, 2023 (unaudited), 27,973,995 at June 30, 2023 (unaudited), and 27,845,244 at March 31, 2023 (unaudited)		276			277			280			280			278
Additional Paid-In Capital		95,069			96,320			100,120			99,044			97,716
Retained Earnings		287,468			280,650			272,812			264,196			255,394
Accumulated Other Comprehensive Loss		(15,716)			(18,246)			(23,766)			(20,908)			(17,896)
Total Shareholders' Equity		433,611			425,515			415,960			409,126			402,006
Total Liabilities and Equity	$	4,723,109		$	4,611,990		$	4,557,070		$	4,603,185		$	4,602,899

Page 11 of 16

Bridgewater Bancshares, Inc. and Subsidiaries Consolidated Statements of Income

(dollars in thousands, except per share data)

(Unaudited)


	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
(dollars in thousands)	2024		****	2023		****	2023		****	2023		****	2023
Interest Income
Loans, Including Fees	$	49,581		$	49,727		$	48,999		$	47,721		$	44,955
Investment Securities		7,916			7,283			6,507			6,237			6,218
Other		1,172			1,543			1,303			1,043			819
Total Interest Income		58,669			58,553			56,809			55,001			51,992


Interest Expense
Deposits		30,190			29,448			27,225			22,998			16,374
Federal Funds Purchased		304			268			548			2,761			4,944
Notes Payable		295			299			296			285			263
FHLB Advances		2,258			2,220			2,316			2,092			861
Subordinated Debentures		991			1,004			1,003			993			983
Total Interest Expense		34,038			33,239			31,388			29,129			23,425

Net Interest Income		24,631			25,314			25,421			25,872			28,567
Provision for (Recovery of) Credit Losses		750			(250)			(600)			50			625

Net Interest Income After Provision for Credit Losses		23,881			25,564			26,021			25,822			27,942

Noninterest Income
Customer Service Fees		342			359			379			368			349
Net Gain (Loss) on Sales of Securities		93			(27)			—			50			(56)
Letter of Credit Fees		316			418			315			379			634
Debit Card Interchange Fees		141			152			150			155			138
Bank-Owned Life Insurance		301			268			252			238			234
FHLB Prepayment Income		—			—			493			—			299
Other Income		357			239			137			225			345
Total Noninterest Income		1,550			1,409			1,726			1,415			1,943

Noninterest Expense
Salaries and Employee Benefits		9,433			9,615			9,519			8,589			8,815
Occupancy and Equipment		1,057			1,062			1,101			1,075			1,209
FDIC Insurance Assessment		875			1,050			1,075			900			665
Data Processing		412			424			392			401			357
Professional and Consulting Fees		889			782			715			829			755
Derivative Collateral Fees		486			573			543			404			380
Information Technology and Telecommunications		796			812			683			711			683
Marketing and Advertising		322			324			222			321			262
Intangible Asset Amortization		9			9			9			34			48
Other Expense		910			1,089			978			1,010			895
Total Noninterest Expense		15,189			15,740			15,237			14,274			14,069

Income Before Income Taxes		10,242			11,233			12,510			12,963			15,816
Provision for Income Taxes		2,411			2,360			2,881			3,147			4,174
Net Income		7,831			8,873			9,629			9,816			11,642
Preferred Stock Dividends		(1,013)			(1,014)			(1,013)			(1,014)			(1,013)
Net Income Available to Common Shareholders	$	6,818		$	7,859		$	8,616		$	8,802		$	10,629

Earnings Per Share
Basic	$	0.25		$	0.28		$	0.31		$	0.32		$	0.38
Diluted		0.24			0.28			0.30			0.31			0.37

Page 12 of 16

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																							****
		March 31, 2024								December 31, 2023							****	March 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		$	75,089		$	829		4.44	%	$	106,275		$	1,233		4.60	%	$	63,253		$	447		2.86	%
Investment Securities:
Taxable Investment Securities			638,509			7,600		4.79			600,856			7,007		4.63			574,242			5,958		4.21
Tax-Exempt Investment Securities^(1)^			31,745			400		5.07			29,172			350		4.75			29,803			330		4.49
Total Investment Securities			670,254			8,000		4.80			630,028			7,357		4.63			604,045			6,288		4.22
Loans ^(1)(2)^			3,729,355			49,858		5.38			3,726,126			50,022		5.33			3,630,446			45,265		5.06
Federal Home Loan Bank Stock			18,058			343		7.64			17,999			310		6.85			25,962			372		5.81
Total Interest Earning Assets			4,492,756			59,030		5.28	%		4,480,428			58,922		5.22	%		4,323,706			52,372		4.91	%
Noninterest Earning Assets			100,082								87,018								81,528
Total Assets		$	4,592,838							$	4,567,446							$	4,405,234
Interest Bearing Liabilities:
Deposits:
Interest Bearing Transaction Deposits		$	732,186			7,693		4.23	%	$	719,630		$	7,546		4.16	%	$	461,372		$	2,780		2.44	%
Savings and Money Market Deposits			896,844			8,781		3.94			911,835			9,003		3.92			1,044,794			6,499		2.52
Time Deposits			317,595			3,167		4.01			268,140			2,330		3.45			248,174			1,069		1.75
Brokered Deposits			1,014,197			10,549		4.18			1,009,166			10,569		4.16			743,465			6,026		3.29
Total Interest Bearing Deposits			2,960,822			30,190		4.10			2,908,771			29,448		4.02			2,497,805			16,374		2.66
Federal Funds Purchased			21,824			304		5.60			18,932			268		5.62			415,111			4,944		4.83
Notes Payable			13,750			295		8.64			13,750			299		8.62			13,750			263		7.77
FHLB Advances			318,648			2,258		2.85			303,467			2,220		2.90			128,222			861		2.72
Subordinated Debentures			79,328			991		5.02			79,233			1,004		5.02			78,945			983		5.05
Total Interest Bearing Liabilities			3,394,372			34,038		4.03	%		3,324,153			33,239		3.97	%		3,133,833			23,425		3.03	%
Noninterest Bearing Liabilities:
Noninterest Bearing Transaction Deposits			701,175								753,430								813,598
Other Noninterest Bearing Liabilities			69,043								72,074								54,270
Total Noninterest Bearing Liabilities			770,218								825,504								867,868
Shareholders' Equity			428,248								417,789								403,533
Total Liabilities and Shareholders' Equity		$	4,592,838							$	4,567,446							$	4,405,234
Net Interest Income / Interest Rate Spread						24,992		1.25	%					25,683		1.25	%					28,947		1.88	%
Net Interest Margin ^(3)^								2.24	%							2.27	%							2.72	%
Taxable Equivalent Adjustment:
Tax-Exempt Investment Securities and Loans						(361)								(369)								(380)
Net Interest Income					$	24,631							$	25,314							$	28,567

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

Page 13 of 16

Bridgewater Bancshares, Inc. and Subsidiaries Asset Quality Summary

(dollars in thousands) (unaudited)


		As of and for the Three Months Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(dollars in thousands)	****	2024		****	2023		****	2023		****	2023		****	2023		****
Allowance for Credit Losses
Balance at Beginning of Period		$	50,494		$	50,585		$	50,701		$	50,148		$	47,996
Impact of Adopting CECL			—			—			—			—			650
Provision for Credit Losses			850			—			—			550			1,500
Charge-offs			(2)			(95)			(122)			(3)			(4)
Recoveries			5			4			6			6			6
Net Charge-offs		$	3		$	(91)		$	(116)		$	3		$	2
Balance at End of Period			51,347			50,494			50,585			50,701			50,148
Allowance for Credit Losses to Total Loans			1.36	%		1.36	%		1.36	%		1.36	%		1.36	%

		As of and for the Three Months Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(dollars in thousands)	****	2024		****	2023		****	2023		****	2023		****	2023		****
Provision for Credit Losses on Loans		$	850		$	—		$	—		$	550		$	1,500
Recovery of Credit Losses for Off-Balance Sheet Credit Exposures			(100)			(250)			(600)			(500)			(875)
Provision for (Recovery of) Credit Losses		$	750		$	(250)		$	(600)		$	50		$	625


	As of and for the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
(dollars in thousands)	2024		****	2023		****	2023		****	2023		****	2023
Selected Asset Quality Data
Loans 30-89 Days Past Due	$	—		$	15,110		$	11		$	—		$	21
Loans 30-89 Days Past Due to Total Loans		0.00	%		0.41	%		0.00	%		0.00	%		0.00	%
Nonperforming Loans	$	249		$	919		$	749		$	662		$	693
Nonperforming Loans to Total Loans		0.01	%		0.02	%		0.02	%		0.02	%		0.02	%
Nonaccrual Loans to Total Loans		0.01	%		0.02	%		0.02	%		0.02	%		0.02	%
Nonaccrual Loans and Loans Past Due 90 Days and Still Accruing to Total Loans		0.01			0.02			0.02			0.02			0.02
Foreclosed Assets	$	20		$	—		$	—		$	116		$	116
Nonperforming Assets ^(1)^		269			919			749			778			809
Nonperforming Assets to Total Assets ^(1)^		0.01	%		0.02	%		0.02	%		0.02	%		0.02	%
Net Loan Charge-Offs (Annualized) to Average Loans		0.00			0.01			0.01			0.00			0.00
Watchlist Risk Rating Loans	$	21,624		$	26,485		$	26,877		$	27,215		$	27,574
Substandard Risk Rating Loans		33,829			35,858			35,621			33,821			36,258

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

Page 14 of 16

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

(dollars in thousands) (unaudited)


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

Pre-Provision Net Revenue
Noninterest Income	$	1,550		$	1,409		$	1,726		$	1,415		$	1,943
Less: (Gain) Loss on Sales of Securities		(93)			27			—			(50)			56
Less: FHLB Advance Prepayment Income		—			—			(493)			—			(299)
Total Operating Noninterest Income		1,457			1,436			1,233			1,365			1,700
Plus: Net Interest Income		24,631			25,314			25,421			25,872			28,567
Net Operating Revenue	$	26,088		$	26,750		$	26,654		$	27,237		$	30,267

Noninterest Expense	$	15,189		$	15,740		$	15,237		$	14,274		$	14,069
Total Operating Noninterest Expense	$	15,189		$	15,740		$	15,237		$	14,274		$	14,069

Pre-Provision Net Revenue	$	10,899		$	11,010		$	11,417		$	12,963		$	16,198

Plus:
Non-Operating Revenue Adjustments		93			(27)			493			50			243
Less:
Provision (Recovery of) for Credit Losses		750			(250)			(600)			50			625
Provision for Income Taxes		2,411			2,360			2,881			3,147			4,174
Net Income	$	7,831		$	8,873		$	9,629		$	9,816		$	11,642

Average Assets	$	4,592,838		$	4,567,446		$	4,504,937		$	4,483,662		$	4,405,234
Pre-Provision Net Revenue Return on Average Assets		0.95	%		0.96	%		1.01	%		1.16	%		1.49	%

Core Net Interest Margin
Net Interest Income (Tax-equivalent Basis)	$	24,992		$	25,683		$	25,822		$	26,280		$	28,947
Less: Loan Fees		(608)			(751)			(914)			(941)			(998)
Core Net Interest Income	$	24,384		$	24,932		$	24,908		$	25,339		$	27,949

Average Interest Earning Assets	$	4,492,756		$	4,480,428		$	4,416,424		$	4,395,050		$	4,323,706
Core Net Interest Margin		2.18	%		2.21	%		2.24	%		2.31	%		2.62	%

Efficiency Ratio
Noninterest Expense	$	15,189		$	15,740		$	15,237		$	14,274		$	14,069
Less: Amortization of Intangible Assets		(9)			(9)			(9)			(34)			(48)
Adjusted Noninterest Expense	$	15,180		$	15,731		$	15,228		$	14,240		$	14,021

Net Interest Income		24,631			25,314		$	25,421		$	25,872		$	28,567
Noninterest Income		1,550			1,409			1,726			1,415			1,943
Less: Gain (Loss) on Sales of Securities		(93)			27			—			(50)			56
Adjusted Operating Revenue	$	26,088		$	26,750		$	27,147		$	27,237		$	30,566
Efficiency Ratio		58.2	%		58.8	%		56.1	%		52.3	%		45.9	%

Page 15 of 16

Bridgewater Bancshares, Inc. and Subsidiaries

Non-GAAP Financial Measures

(dollars in thousands) (unaudited)


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

Tangible Common Equity and Tangible Common Equity/Tangible Assets
Total Shareholders' Equity	$	433,611		$	425,515		$	415,960		$	409,126		$	402,006
Less: Preferred Stock		(66,514)			(66,514)			(66,514)			(66,514)			(66,514)
Total Common Shareholders' Equity		367,097			359,001			349,446			342,612			335,492
Less: Intangible Assets		(2,806)			(2,814)			(2,823)			(2,832)			(2,866)
Tangible Common Equity	$	364,291		$	356,187		$	346,623		$	339,780		$	332,626

Total Assets	$	4,723,109		$	4,611,990		$	4,557,070		$	4,603,185		$	4,602,899
Less: Intangible Assets		(2,806)			(2,814)			(2,823)			(2,832)			(2,866)
Tangible Assets	$	4,720,303		$	4,609,176		$	4,554,247		$	4,600,353		$	4,600,033
Tangible Common Equity/Tangible Assets		7.72	%		7.73	%		7.61	%		7.39	%		7.23	%

Tangible Book Value Per Share
Book Value Per Common Share	$	13.30		$	12.94		$	12.47		$	12.25		$	12.05
Less: Effects of Intangible Assets		(0.10)			(0.10)			(0.10)			(0.10)			(0.10)
Tangible Book Value Per Common Share	$	13.20		$	12.84		$	12.37		$	12.15		$	11.95

Return on Average Tangible Common Equity
Net Income Available to Common Shareholders	$	6,818		$	7,859		$	8,616		$	8,802		$	10,629

Average Shareholders' Equity	$	428,248		$	417,789		$	414,047		$	406,347		$	403,533
Less: Average Preferred Stock		(66,514)			(66,514)			(66,514)			(66,514)			(66,514)
Average Common Equity		361,734			351,275			347,533			339,833			337,019
Less: Effects of Average Intangible Assets		(2,811)			(2,819)			(2,828)			(2,846)			(2,894)
Average Tangible Common Equity	$	358,923		$	348,456		$	344,705		$	336,987		$	334,125
Return on Average Tangible Common Equity		7.64	%		8.95	%		9.92	%		10.48	%		12.90	%

Page 16 of 16

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 significant rate increases by the Federal Reserve since 2020; fluctuations in the values of the securities held in our securities portfolio, including as the result of changes in interest rates; business and<br>economic conditions generally and in the financial services industry, nationally and within our market area, including high rates of inflation and possible recession; the effects of recent developments and events in the financial services<br>industry, including the large-scale deposit withdrawals over a short period of time that resulted in recent bank failures; loan concentrations in our portfolio; the overall health of the local and national real estate market; our ability to<br>successfully manage credit risk; our ability to maintain an adequate level of allowance for credit losses; new or revised accounting standards; the concentration of large loans to certain borrowers; the concentration of large deposits<br>from certain clients, who have balances above current FDIC insurance limits; our ability to successfully manage liquidity risk, which may increase our dependence on non-core funding sources such as brokered deposits, and negatively<br>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<br>attract and retain key personnel; talent and labor shortages and high rates of employee turnover; the occurrence of fraudulent activity, breaches or failures of our or our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; interruptions involving our information technology and telecommunications systems or third-party servicers; competition in the<br>financial services industry, including from nonbank competitors such as credit unions and “fintech” companies; the effectiveness of our risk management framework; the commencement and outcome of litigation and other legal<br>proceedings and regulatory actions against us; the impact of recent and future legislative and regulatory changes, including in response to the recent bank failures; risks related to climate change and the negative impact it may have on<br>our customers and their businesses; the imposition of other governmental policies impacting the value of products produced by our commercial borrowers; severe weather, natural disasters, wide spread disease or pandemics, acts of war<br>or terrorism or other adverse external events, including the ongoing Israeli-Palestinian conflict and the Russian invasion of Ukraine; potential impairment to the goodwill the Company recorded in connection with our past acquisition;<br>changes to U.S. or state tax laws, regulations and guidance, including the 1% excise tax on stock buybacks by publicly traded companies; potential changes in federal policy and at regular agencies as a result of the upcoming 2024<br>presidential election; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission.<br>Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. The Company undertake no obligation to publicly update any<br>forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. Certain of the information contained in this presentation is derived<br>from information provided by industry sources. Although the Company believe that such information is accurate and that the sources from which it has been obtained are reliable, the Company cannot guarantee the accuracy of, and<br>have not independently verified, such information.<br>Use of Non-GAAP financial measures<br>In addition to the results presented in accordance with U.S. General Accepted Accounting Principles (“GAAP”), the Company routinely supplements its evaluation with an analysis of certain non-GAAP financial measures. The Company<br>believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors to help them understand the Company’s operating performance and trends, and to facilitate<br>comparisons with the performance of peers. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures<br>that may be presented by other companies. Reconciliations of non-GAAP disclosures to the comparable GAAP measures are provided in this presentation.<br>2
0.01%<br>1Q24 Earnings Highlights<br>3<br>• Deposit balances up $97.3 million, or 10.5% annualized, from 4Q23, including core deposit2 growth of 14.3% annualized<br>• Loan balances up $59.9 million, or 6.5% annualized, from 4Q23<br>• Loan-to-deposit ratio of 99.4%, down from 100.4% at December 31, 2023<br>• Net interest margin (NIM) of 2.24%, down 3 bps from 4Q23<br>• Yield on interest earnings assets up 6 bps from 4Q23; cost of funds up 11 bps<br>• Balance sheet well-positioned for rate cuts and a normalizing yield curve<br>• Noninterest expense down $0.6 million, or 3.5%, from 4Q23<br>• Efficiency ratio1 of 58.2%, down from 58.8% in 4Q23, the first quarterly decline since 3Q22<br>• Noninterest expense to average assets of 1.33%, down 4 bps from 4Q23<br>• Annualized net charge-offs to average loans of 0.00%, down from 0.01% in 4Q23<br>• Nonperforming assets to total assets of 0.01%, down from 0.02% in 4Q23<br>• Growth-driven provision for credit losses on loans of $850,000; well-reserved with allowance to total loans of 1.36%<br>Slower Net Interest<br>Margin Compression<br>Well-Controlled<br>Expenses<br>Superb<br>Asset Quality<br>$0.24<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>0.69% 7.64% 58.2%<br>1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>2 Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000<br>3 Includes publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion as of December 31, 2023 with growth rate through 4Q23 (Source: S&P Capital IQ)<br>• Tangible book value per share1 of $13.20, up 11.5% annualized from 4Q23; 29 consecutive quarters of growth<br>• Tangible book value per share1 growth of 192% since 4Q16 vs. peer bank average of 63%3<br>• Repurchased 193,802 shares of common stock, or $2.3 million (average price of $11.75 per share)<br>Consistent<br>Tangible Book Value<br>Per Share Growth<br>Strong Balance Sheet<br>Growth
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Consistent Tangible Book Value Per Share<br>Outperformance<br>4<br>192%<br>63%<br>0%<br>50%<br>100%<br>150%<br>200%<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>BWB Peer Bank Average2<br>Tangible Book Value Per Share1 Growth for 29 Consecutive Quarters<br>1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>2<br>Includes publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion as of December 31, 2023 with growth rate through 4Q23 (Source: S&P Capital IQ)
---
Slower Net Interest Margin Compression<br>5<br>$27,569<br>$24,931 $24,507 $24,563 $24,023<br>$998<br>$941 $914 $751 $608<br>$28,567<br>$25,872 $25,421 $25,314 $24,631<br>2.72%<br>2.40% 2.32% 2.27% 2.24%<br>1Q23 2Q23 3Q23 4Q23 1Q24<br>Net Interest Margin1<br>Net Interest Income (ex. Loan Fees)<br>Loan Fees<br>Net Interest Income and Margin Trends Net Interest Margin Drivers<br>Net Interest Income / Net Interest Margin Commentary<br>1 Amounts calculated on a tax-equivalent basis using statutory federal tax rate of 21%<br>Dollars in thousands<br>Net Interest Income<br>• Lower NIM more than offset modest average earning asset growth<br>• Loan fees continue to decline due to reduced payoffs<br>Net Interest Margin<br>• NIM compression slowed as the pace of rising funding costs slowed and<br>asset yields move steadily higher<br>• Well-positioned for rate cuts and a more normalized yield curve<br>• Over $1 billion of adjustable funding tied to short-term rates<br>• Loan portfolio positioned to continue repricing higher
---
Rising Funding Costs Slow as<br>Asset Yields Move Higher<br>6<br>$2,498 $2,711 $2,857 $2,909 $2,961<br>$814 $755 $755 $753 $701 $636 $546 $408 $415 $434<br>$3,948 $4,012 $4,020 $4,077 $4,096<br>2.41%<br>2.91% 3.10% 3.23% 3.34%<br>1Q23 2Q23 3Q23 4Q23 1Q24<br>$3,630 $3,717 $3,723 $3,726 $3,729<br>5.06% 5.19% 5.26% 5.33% 5.38%<br>4.95% 5.09% 5.16% 5.25% 5.31%<br>1Q23 2Q23 3Q23 4Q23 1Q24<br>$3,311 $3,466 $3,611 $3,662 $3,662<br>2.01%<br>2.66% 2.99% 3.19% 3.32%<br>1Q23 2Q23 3Q23 4Q23 1Q24<br>Loan Yield (ex. Loan Fees)2<br>Loan Portfolio Repricing Higher Growth of High-Yielding Securities Portfolio<br>Pace of Rising Deposits Costs Slows Pace of Rising Funding Costs Slows<br>$604 $595 $595<br>$630<br>$670<br>4.22% 4.24% 4.39% 4.63% 4.80%<br>1Q23 2Q23 3Q23 4Q23 1Q24<br>Average Interest-Bearing Deposits Average Noninterest-Bearing Deposits<br>Average Borrowings Cost of Liability Funding<br>Average Loans Loan Yield1 Average Investments Investment Yield1<br>Average Total Deposits Cost of Total Deposits<br>1 Amounts calculated on a tax-equivalent basis using statutory federal tax rate of 21%<br>2 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>Dollars in millions
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Revenue Trends Impacted by<br>Current Interest Rate Environment<br>7<br>PPNR ROA1<br>Pre-Provision Net Revenue (PPNR) Stabilization Spread-Based Revenue Model<br>$28,567<br>$25,872 $25,421 $25,314 $24,631<br>$1,943<br>$1,415 $1,726 $1,409 $1,550<br>$30,510<br>$27,287 $27,147 $26,723 $26,181<br>1Q23 2Q23 3Q23 4Q23 1Q24<br>$16,198<br>$12,963<br>$11,417 $11,010 $10,899 $11,642<br>$9,816 $9,629<br>$8,873<br>$7,831<br>1.49%<br>1.16%<br>1.01% 0.96% 0.95%<br>1.07%<br>0.88% 0.85% 0.77% 0.69%<br>1Q23 2Q23 3Q23 4Q23 1Q24<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
---
$8,815 $8,589 $9,519 $9,615 $9,433<br>$1,209 $1,075<br>$1,101 $1,062 $1,057<br>$1,040 $1,112<br>$1,075 $1,236 $1,208 $665 $900<br>$1,075 $1,050 $875<br>$2,340 $2,598<br>$2,467 $2,777 $2,616<br>$14,069 $14,274<br>$15,237 $15,740 $15,189<br>1Q23 2Q23 3Q23 4Q23 1Q24<br>Well-Controlled Expenses<br>8<br>1.30% 1.28% 1.34% 1.37% 1.33%<br>45.9%<br>52.3%<br>56.1%<br>58.8% 58.2%<br>1Q23 2Q23 3Q23 4Q23 1Q24<br>NIE / Avg. Assets2 Efficiency Ratio3<br>Highly Efficient Business Model Despite Recent Revenue Pressures Well-Controlled Expenses in 1Q24<br>Industry median efficiency ratio of 63%1 in 4Q23 Lower expenses driven by personnel, FDIC insurance and other NIE<br>Salary and Employee Benefits Occupancy<br>Technology FDIC Insurance Assessment<br>1 Includes publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion as of December 31, 2023 (Source: S&P Capital IQ)<br>2 Annualized<br>3 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>Dollars in thousands<br>Other
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Continued Core Deposit Growth<br>Momentum<br>9<br>22% 21% 21% 20% 18%<br>18% 20% 21% 19% 21%<br>27% 24% 24% 25% 26%<br>8% 8% 7% 8%<br>9%<br>25%<br>27%<br>27% 28%<br>26%<br>$3,411<br>$3,578 $3,676 $3,710 $3,807<br>1Q23 2Q23 3Q23 4Q23 1Q24<br>Noninterest-Bearing Transaction Interest-Bearing Transaction<br>Savings & Money Market Time<br>Brokered<br>• Total deposit balances up 10.5% annualized<br>• Core deposit1 balances up 14.3% annualized; up 6.8% YoY<br>• Mix shift from noninterest-bearing to interest-bearing transaction<br>accounts<br>• Brokered deposit balances decreased for the first time since 3Q22<br>• Core deposit growth not always linear due to nature of client base<br>Deposit Growth With Ongoing Mix Shift<br>1 Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000<br>Dollars in millions<br>Funding Repricing Summary (1Q24)<br>Immediately Adjustable Deposits $ 788<br>Derivatives Hedging 273<br> Total $ 1,061<br>Time Deposit Maturities (next 12 months) $ 326<br>Callable Brokered Deposits 185<br> Total $ 511<br>Funding Tied to Short-Term Rates<br>Other Repricing Opportunities
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Strong Loan Growth Driven by<br>Increased Demand<br>10<br>$3,684<br>$3,736 $3,722 $3,724<br>$3,784<br>1Q23 2Q23 3Q23 4Q23 1Q24<br>Gross Loans<br>Dollars in millions<br>• 1Q24 loan balances up $59.9M, or 6.5% annualized<br>• Loan pipeline began increasing in late 2023 as loan demand picked up<br>• Loan-to-deposit ratio of 99.4%, down from 108.0% in 1Q23; first time<br>the loan-to-deposit ratio has been below 100% since 1Q22<br>Loan Growth With Increased Market Demand<br>• Loan demand – loan pipeline and demand remain higher than a year<br>ago<br>• Market and economic conditions – higher rate environment could limit<br>loan demand upside<br>• Pace of loan payoffs and paydowns – potential for increased payoffs if<br>rates move lower<br>• Pace of core deposit growth – continue to align loan growth with core<br>deposit growth over time<br>Loan Growth Outlook Drivers
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Increase in New Loan Originations<br>Driving Loan Growth<br>11<br>New Originations Exceeded Advances for First Time Since 4Q22<br>$75 $47 $71 $71 $96<br>$145<br>$84<br>$87 $87 $67<br>$220<br>$131<br>$158 $158 $163<br>1Q23 2Q23 3Q23 4Q23 1Q24<br>New Originations Advances<br>Loan Payoffs and Paydowns Remain at Relatively Low Levels<br>$69 $54<br>$106 $102<br>$58<br>$42 $45<br>$60 $45<br>$44<br>$111 $99<br>$166<br>$147<br>$102<br>1Q23 2Q23 3Q23 4Q23 1Q24<br>Payoffs Amortization/Paydowns<br>Dollars in millions<br>1Q24 Loan Growth Waterfall
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Well-Diversified Loan Portfolio<br>with a Multifamily Focus<br>12 Dollars in millions<br>CRE NOO<br>27.4%<br>Multifamily<br>36.7%<br>C&D<br>7.1%<br>1-4 Family<br>Mortgage<br>11.0%<br>CRE OO<br>4.8% C&I<br>12.8%<br>Consumer<br>& Other<br>0.2%<br>Loan Mix<br>by Type<br>$3.8<br>Billion<br>• Continued migration out of Construction & Development as deals completed the ‘construction’ phase<br>• Remain comfortable with the diversity of the loan portfolio, including CRE and Multifamily concentrations, given<br>portfolio performance and expertise<br>1Q24 Loan Growth by Type (vs. 4Q23)<br>$(31)<br>$1<br>$1<br>$7<br>$15<br>$19<br>$48<br>Multifamily<br>1-4 Family Mortgage<br>Construction & Development<br>C&I<br>CRE Owner Occupied<br>CRE Nonowner Occupied<br>Consumer & Other
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Managing Multifamily and<br>Office-Related Risk<br>13 1<br>Includes formally subsidized properties (15%) and market rate properties with affordable set-asides (8%)<br>2 Excludes medical office of $81 million at March 31, 2024<br>Strong Multifamily Track Record in Stable Twin Cities Market Well-Managed CRE NOO Office Exposure2<br>Small CRE NOO<br>Office Portfolio<br>Low Average Loan<br>Size<br>LTVs In-Line with the<br>Total Loan Portfolio<br>5.3%<br>of Total Loans<br>$2.3M<br>Average Loan Size<br>60%<br>Weighted Average LTV<br>CRE NOO Office by Geography<br>Twin Cities<br>Suburban<br>52%<br>Minneapolis-St. Paul CBD<br>13%<br>Minneapolis-St. Paul Non-CBD<br>20%<br>Out-of-State<br>16%<br>$200M<br>• Majority of CRE NOO office<br>exposure in the Twin Cities<br>suburbs<br>• Only 4 loans totaling $35M<br>located in central business<br>districts (CBD), with one on<br>Watch and one Substandard<br>• Only 3 loans totaling $31M<br>outside of Minnesota – out-of-state projects for existing<br>local clients<br>Average<br>Loan Size<br>Weighted Average<br>LTV<br>NCOs<br>(since 2005)<br>$3.2M 62% $62K<br>Multifamily Lending Approach in the Twin Cities<br>• Bank of choice in the Twin Cities with expertise and service model<br>• Greater tenant diversification compared to other asset classes<br>• Affordable housing makes up 24%1 of the multifamily portfolio<br>• Historically stable Twin Cities market with less volatility than coastal markets<br>• Market catalysts include relative affordability, low unemployment, strong<br>wages, and shortage of single-family housing<br>Twin Cities<br>Metro<br>92%<br>Greater<br>MN<br>4%<br>Other 4%<br>Location<br>Class A<br>38%<br>Class B<br>15%<br>Class C<br>40%<br>Construction<br>7%<br>Product<br>Type
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¹ Nonaccrual loans plus loans 90 days past due and still accruing and foreclosed assets<br>Dollars in thousands<br>Superb Asset Quality Continues<br>14<br>$(2) $(3)<br>$116 $91<br>$(3)<br>0.00% 0.00% 0.01% 0.01% 0.00%<br>1Q23 2Q23 3Q23 4Q23 1Q24<br>Net Charge-Offs<br>Cumulative NCOs of $534K since 2019<br>Net Charge-offs (recoveries) % of Average Loans (annualized)<br>$50,148 $50,701 $50,585 $50,494<br>$51,347<br>1.36% 1.36% 1.36% 1.36% 1.36%<br>1Q23 2Q23 3Q23 4Q23 1Q24<br>Allowance for Credit Losses<br>Growth-driven provision in 1Q24<br>Allowance for Credit Losses % of Gross Loans<br>$809 $778 $749<br>$919<br>$269<br>0.02% 0.02% 0.02% 0.02% 0.01%<br>1Q23 2Q23 3Q23 4Q23 1Q24<br>Nonperforming Assets1<br>Consistently low NPA levels<br>NPAs % of Assets
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Watch and Substandard Loans<br>Remain Stable<br>15<br>C&I<br>2.4%<br>Multifamily<br>13.4%<br>CRE NOO<br>Office<br>41.1%<br>CRE NOO<br>Retail<br>31.9%<br>CRE Other<br>11.2%<br>$22<br>Million<br>Watch List Loans Substandard Loans<br>C&I<br>44.7%<br>CRE NOO<br>Office<br>27.9%<br>CRE NOO<br>Hotels<br>9.0%<br>CRE NOO<br>Retail<br>13.3%<br>CRE OO<br>2.9%<br>C&D<br>0.2%<br>1-4<br>Family<br>2.0%<br>$34<br>Million<br>Watch List Characteristics<br>Loan Balances Outstanding $21,624<br>% of Total Loans, Gross 0.6%<br>Number of Loans 9<br>Average Loan Size $2,403<br>Substandard Characteristics<br>Loan Balances Outstanding $33,829<br>% of Total Loans, Gross 0.9%<br>Number of Loans 19<br>Average Loan Size $1,780<br>% of Bank Risk-Based Capital 5.98%<br>$27,574 $27,215 $26,877 $26,485<br>$21,624<br>1Q23 2Q23 3Q23 4Q23 1Q24<br>$36,258 $33,821 $35,621 $35,858 $33,829<br>1Q23 2Q23 3Q23 4Q23 1Q24<br>Dollars in thousands
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Strong Capital Ratios<br>16<br>9.41% 9.47% 9.62% 9.57% 9.66%<br>8.48% 8.72% 9.07% 9.16% 9.21%<br>13.25% 13.50%<br>13.88% 13.97% 14.00%<br>7.23% 7.39% 7.61% 7.73% 7.72%<br>1Q23 2Q23 3Q23 4Q23 1Q24<br>Total Risk-Based Capital Ratio Common Equity Tier 1 Capital Ratio<br>Tier 1 Leverage Ratio<br>Building Capital in the Current Environment<br>Tangible Common Equity Ratio1<br>1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation<br>1Q24 Capital Actions<br>• Repurchased 193,802 shares of common stock ($2.3 million) at a weighted<br>average price of $11.75<br>• $18.2 million remaining under current share repurchase authorization<br>Capital Priorities<br>1<br>3<br>2<br>Organic Growth<br>Share Repurchases<br>M&A<br>4 Dividends<br>Drive profitability by supporting a proven organic loan growth<br>engine<br>Opportunistically return capital to shareholders by buying back<br>stock based on valuation, capital levels, and other uses of capital<br>Review and evaluate corporate development opportunities that<br>complement BWB’s business model<br>Have not historically paid a common stock dividend given loan<br>growth opportunities
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Near-Term Expectations<br>17<br>• Low-to-mid-single digit loan growth<br>• Focus on aligning loan growth with core deposit growth<br>• Target loan-to-deposit ratio between 95% and 105%<br>Balance Sheet<br>Growth<br>• Modest net interest margin pressure in the near-term given uncertainty of the timing of potential interest rate cuts<br>• Positioned to benefit from potential rate cuts and a normalizing yield curve<br>• Dependent on the path of interest rates, shape of the yield curve, and pace of core deposit growth and loan payoffs<br>Net Interest<br>Margin<br>• Noninterest expense growth throughout 2024 with similar trajectory as 2023, driven by continued investments in<br>people and technology initiatives<br>• Full-year noninterest expense growth aligned with asset growth<br>• Provision expense to align with loan growth and overall asset quality<br>Expenses<br>• Maintain strong tangible common equity and CET1 ratios<br>• Ongoing evaluation of potential share repurchases based on valuation, capital levels, and other uses of capital<br>Capital<br>Levels
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2024 Strategic Priorities<br>18<br>Optimize Balance Sheet for<br>Longer Term Profitable Growth<br>Continue to Gain Loan and<br>Deposit Market Share<br>Generate Incremental<br>Operational Efficiencies While<br>Investing in the Business<br>Scale ERM Function and<br>Monitor Asset Quality Risks<br>• Opportunistically gather core<br>deposits and build high quality<br>lending relationships<br>• Grow loan balances inline with<br>core deposits over time<br>• Generate more profitable growth<br>in a normalized interest rate<br>environment<br>• Expand lending focus on high<br>quality affordable housing sector<br>• Execute on new C&I initiatives<br>through targeted verticals,<br>including a network of women<br>business leaders and<br>entrepreneurial operating system<br>implementers<br>• Identify M&A opportunities and<br>potential markets that enhance<br>BWB’s overall business model<br>• Identify opportunities across all<br>functions to improve operational<br>efficiency<br>• Make proactive investments to<br>scale the business and position for<br>longer term growth<br>• Implement key IT investments,<br>including new CRM platform and<br>upgraded retail and small business<br>online banking solution<br>• Continue to focus on scaling the<br>enterprise risk management<br>function<br>• Monitor the loan portfolio for signs<br>of credit weakness, especially in<br>CRE and multifamily portfolios<br>• Ongoing covenant testing and<br>assess repricing risk on maturing<br>loans<br>YTD Progress<br>• Core deposit growth1 of 14.3%,<br>annualized, in 1Q24<br>• Loan growth of 6.5%, annualized,<br>in 1Q24<br>• Hosted a successful networking<br>event for local women business<br>leaders<br>• Reduced efficiency ratio in 1Q24<br>for the first time since 3Q22<br>• Net charge-off ratio of 0.00%<br>• NPAs-to-assets of 0.01%<br>1 Core deposits are defined as total deposits less brokered deposits and certificates of deposit greater than $250,000
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APPENDIX<br>19
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15% 16% 22% 20% 14% 13%<br>$86 $91<br>$126 $116<br>$81 $77<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>20% 15% 13% 14% 14%<br>24%<br>$516<br>$389 $330 $371 $361<br>$642<br>Less<br>Than<br>1 Year<br>1 to 2<br>Years<br>2 to 3<br>Years<br>3 to 4<br>Years<br>4 to 5<br>Years<br>5+<br>Years<br>Loan Portfolio to Reprice Higher<br>Even If Interest Rates Decline<br>20<br>Fixed,<br>69%<br>Variable,<br>16%<br>Adjustable,<br>15%<br>Loan Portfolio Mix<br>Fixed-Rate Portfolio<br>($2.6B)<br>Variable-Rate Portfolio<br>($601M)<br>Adjustable-Rate Portfolio<br>($576M)<br>Years to Maturity<br>• Large fixed-rate portfolio<br>provides support to total loan<br>yields in a rates-down<br>environment<br>• $516M of fixed-rate loans<br>maturing over the next year with<br>a weighted average yield of<br>5.38%<br>Variable-Rate Loan Floors<br>$- $1 $1 $3<br>$484<br>At<br>Floor<br>(1Q24)<br>Down<br>25 bps<br>Down<br>50 bps<br>Down<br>75 bps<br>Down<br>100+<br>bps<br>Cumulative balances<br>at the floor as rates decline<br>• Small variable-rate portfolio<br>limits immediate repricing<br>pressure in a rates-down<br>environment<br>• 81% of variable-rate portfolio<br>have floors<br>• 97% of variable-rate loans are<br>currently tied to SOFR or Prime<br>Adjustable-Rate<br>Repricing/Maturity Schedule<br>• Adjustable-rate loans likely to<br>reprice higher in a rates-down<br>environment<br>• $86M of adjustable-rate loans<br>repricing or maturing over the<br>next year with a weighted<br>average yield of 4.34%<br>Dollars in millions<br>WA<br>Yield 5.38% 4.69% 4.49% 4.77% 5.04% 4.22%<br>WA<br>Yield 4.34% 4.22% 3.84% 4.76% 4.38% 4.32%
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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 potential rate cuts and a<br>normalizing yield curve<br>Loan Portfolio Considerations<br>• Loan portfolio most sensitive to changes in the 3- to 5-year portion of the<br>yield curve<br>• Loan portfolio to reprice higher even in a rates-down environment given<br>larger fixed-rate portfolio and smaller variable-rate portfolio<br>• $602 million of fixed- and adjustable-rate loans scheduled to reprice over<br>the next year<br>• Leveraging prepayment penalties on new loan originations to help<br>maintain benefit of higher rates over time<br>Funding Considerations<br>• Deposit base is more sensitive to changing interest rates<br>• Momentum in core deposit growth since March 2023<br>• Continue to supplement core deposits with wholesale funding to support<br>loan growth over time<br>• Brokered deposits generally include call options to protect net interest<br>margin as interest rates decline<br>• Over $1 billion of adjustable funding tied to short-term rates<br>-200 bps<br>(1.2)%<br>+2.1%<br>1Q24<br>+4.1%<br>(4.6)%<br>+6.2%<br>1Q23<br>+12.2%<br>(1.9)%<br>+4.0%<br>2Q23<br>+7.5%<br>(0.6)%<br>+2.5%<br>3Q23<br>+4.9%<br>-300 bps +17.9% +11.2% +7.2% +6.6%<br>(1.3)%<br>+3.0%<br>4Q23<br>+5.9%<br>+8.9%
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High Quality Securities Portfolio<br>22<br>41% 41% 38% 38% 38%<br>23% 24% 22% 22% 21%<br>21% 21% 22%<br>22% 21%<br>15% 14% 18%<br>18% 20%<br>$559 $538 $553<br>$604 $633<br>1Q23 2Q23 3Q23 4Q23 1Q24<br>Mortgage-Backed Securities Municipal Bonds<br>Corporate Securities Other<br>Securities Available for Sale Portfolio<br>AAA,<br>28%<br>AA,<br>40%<br>A,<br>3%<br>BBB,<br>13%<br>NR,<br>16%<br>Rating Mix<br>Derivatives Portfolio Offsetting AOCI Impact<br>$(42,584) $(44,370)<br>$23,148 $27,201<br>$(17,896) $(15,716)<br>1Q23 1Q24<br>MTM Securities MTM Derivatives Net Impact on AOCI1<br>• No held-to-maturity securities<br>• Securities portfolio average duration of 4.8 years<br>• Average securities portfolio yield of 4.80%<br>• Unrealized losses on AFS securities were 10.0% of<br>stockholders’ equity<br>• AOCI / Total RBC of 2.6% vs. peer bank median of 8.3%2<br>1 Includes the tax-effected impact of $7,215 in 1Q23 and $6,338 in 1Q24<br>2 4Q23 median for publicly-traded banks on major exchanges with total assets between $3 billion and $10 billion (Source: S&P Capital IQ)<br>Dollars in thousands
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Ample Liquidity and Borrowing Capacity<br>23 1 Excludes $169M of pledged securities at March 31, 2024<br>Dollars in millions<br>10.9% 9.6% 10.2% 11.5% 12.1%<br>30.9% 33.1%<br>37.6%<br>37.0% 35.5%<br>$1,924 $1,962<br>$2,181 $2,234 $2,249<br>1Q23 2Q23 3Q23 4Q23 1Q24<br>Off-Balance Sheet Liquidity as a % of Assets<br>On-Balance Sheet Liquidity as a % of Assets<br>Liquidity Position with 2.3x Coverage of Uninsured Deposits Diverse Liquidity Mix<br>Funding Source 3/31/2024 3/31/2023 Change<br>Cash and Cash Equivalents $ 106 $ 177 $ (71)<br>Unpledged Securities1<br> 464 325 139<br>FHLB Capacity 447 247 200<br>FRB Discount Window 1,006 991 15<br>Unsecured Lines of Credit 200 158 4 2<br>Secured Line of Credit 26 26 -<br> Total $ 2,249 $ 1,924 $ 325<br>Available Balance
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Reconciliation of Non-GAAP Financial<br>Measures – Efficiency, TCE, Core Loan<br>Yield, and ROATCE<br>24 Dollars in thousands<br>Efficiency Ratio<br>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>Noninterest Expense $ 14,069 $ 14,274 $ 15,237 $ 15,740 $ 15,189 Net Income Available to Common Shareholders<br>Less: Amortization Intangible Assets (48) (34) (9) (9) (9)<br>Adjusted Noninterest Expense $ 14,021 $ 14,240 $ 15,228 $ 15,731 $ 15,180 Average Total Shareholders' Equity<br>Less: Average Preferred Stock<br>Net Interest Income $ 28,567 $ 25,872 $ 25,421 $ 25,314 $ 24,631 Average Total Common Shareholders' Equity<br>Noninterest Income 1,943 1,415 1,726 1,409 1,550 Less: Effects of Average Intangible Assets<br>Less: (Gain) Loss on Sales of Securities 56 (50) - 2 7 (93) Average Tangible Common Equity<br>Adjusted Operating Revenue $ 30,566 $ 27,237 $ 27,147 $ 26,750 $ 26,088 Annualized Return on Average Tangible Common Equity<br> Efficiency Ratio 45.9% 52.3% 56.1% 58.8% 58.2%<br>Tangible Common Equity &<br>Tangible Common Equity/Tangible Assets<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>Total Shareholders' Equity $ 402,006 $ 409,126 $ 415,960 $ 425,515 $ 433,611<br>Less: Preferred Stock (66,514) (66,514) (66,514) (66,514) (66,514)<br>Total Common Shareholders' Equity 335,492 342,612 349,446 359,001 367,097<br>Less: Intangible Assets (2,866) (2,832) (2,823) (2,814) (2,806)<br>Tangible Common Equity $ 332,626 $ 339,780 $ 346,623 $ 356,187 $ 364,291<br>Total Assets $ 4,602,899 $ 4,603,185 $ 4,557,070 $ 4,611,990 $ 4,723,109<br>Less: Intangible Assets (2,866) (2,832) (2,823) (2,814) (2,806)<br>Tangible Assets $ 4,600,033 $ 4,600,353 $ 4,554,247 $ 4,609,176 $ 4,720,303<br>Tangible Common Equity/Tangible Assets 7.23% 7.39% 7.61% 7.73% 7.72%<br>$ 428,248<br> (66,514)<br>$ 361,734<br> (2,811)<br>$ 358,923<br>7.64%<br>As of and for the quarter ended,<br>ROATCE<br>As of and for the quarter ended,<br>March 31,<br>2024<br>$ 6,818<br>As of and for the quarter ended,<br>Core Loan Yield<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>Loan Interest Income (Tax-Equivalent Basis) $ 45,265 $ 48,066 $ 49,326 $ 50,022 $ 49,858<br>Less: Loan Fees (998) (941) (914) (751) (608)<br> Core Loan Interest Income $ 44,267 $ 47,125 $ 48,412 $ 49,271 $ 49,250<br>Average Loans $ 3,630,446 $ 3,716,534 $ 3,722,594 $ 3,726,126 $ 3,729,355<br>Core Loan Yield 4.95% 5.09% 5.16% 5.25% 5.31%<br>As of and for the quarter ended,
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Reconciliation of Non-GAAP Financial<br>Measures – PPNR<br>25 Dollars in thousands<br>Pre-Provision Net Revenue<br>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>Noninterest Income $ 1,943 $ 1,415 $ 1,726 $ 1,409 $ 1,550<br>Less: (Gain) Loss on Sales on Securities 5 6 (50) - 27 (93)<br>Less: FHLB Advance Prepayment Income (299) - (493) - -<br> Total Operating Noninterest Income 1,700 1,365 1,233 1,436 1,457<br>Plus: Net Interest Income 28,567 25,872 25,421 25,314 24,631<br> Net Operating Revenue 30,267 27,237 26,654 26,750 26,088<br>Noninterest Expense $ 14,069 $ 14,274 $ 15,237 $ 15,740 $ 15,189<br> Total Operating Noninterest Expense 14,069 14,274 15,237 15,740 15,189<br>Pre-Provision Net Revenue $ 16,198 $ 12,963 $ 11,417 $ 11,010 $ 10,899<br>Plus:<br> Non-Operating Revenue Adjustments 243 5 0 493 (27) 93<br>Less:<br> Provision for (Recovery of) Credit Losses 625 5 0 (600) (250) 750<br> Provision for Income Taxes 4,174 3,147 2,881 2,360 2,411<br>Net Income $ 11,642 $ 9,816 $ 9,629 $ 8,873 $ 7,831<br>Average Assets $ 4,405,234 $ 4,483,662 $ 4,504,937 $ 4,567,446 $ 4,592,838<br>Pre-Provision Net Revenue Return on Average Assets 1.49% 1.16% 1.01% 0.96% 0.95%<br>As of and for the quarter ended,
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Reconciliation of Non-GAAP Financial<br>Measures – Tangible Book Value<br>26 Dollars in thousands<br>Tangible Book Value Per Share<br>December 31,<br>2016<br>March 31,<br>2017<br>June 30,<br>2017<br>September 30,<br>2017<br>December 31,<br>2017<br>March 31,<br>2018<br>June 30,<br>2018<br>September 30,<br>2018<br>December 31,<br>2018<br>March 31,<br>2019<br>Book Value Per Common Share $ 4.69 $ 4.91 $ 5.23 $ 5.43 $ 5.56 $ 6.62 $ 6.85 $ 7.01 $ 7.34 $ 7.70<br>Less: Effects of Intangible Assets (0.16) (0.16) (0.16) (0.16) (0.16) (0.13) (0.12) (0.12) (0.12) (0.12)<br>Tangible Book Value Per Common Share $ 4.53 $ 4.75 $ 5.07 $ 5.27 $ 5.40 $ 6.49 $ 6.73 $ 6.89 $ 7.22 $ 7.58<br>Total Common Shares 24,589,861 24,589,861 24,589,861 24,629,861 24,679,861 30,059,374 30,059,374 30,059,374 30,097,274 30,097,674<br>Tangible Book Value Per Share<br>June 30,<br>2019<br>September 30,<br>2019<br>December 31,<br>2019<br>March 31,<br>2020<br>June 30,<br>2020<br>September 30,<br>2020<br>December 31,<br>2020<br>March 31,<br>2021<br>June 30,<br>2021<br>September 30,<br>2021<br>Book Value Per Common Share $ 7.90 $ 8.20 $ 8.45 $ 8.61 $ 8.92 $ 9.25 $ 9.43 $ 9.92 $ 10.33 $ 10.73<br>Less: Effects of Intangible Assets (0.12) (0.12) (0.12) (0.12) (0.12) (0.12) (0.12) (0.12) (0.12) (0.11)<br>Tangible Book Value Per Common Share $ 7.78 $ 8.08 $ 8.33 $ 8.49 $ 8.80 $ 9.13 $ 9.31 $ 9.80 $ 10.21 $ 10.62<br>Total Common Shares 28,986,729 28,781,162 28,973,572 28,807,375 28,837,560 28,710,775 28,143,493 28,132,929 28,162,777 28,066,822<br>Tangible Book Value Per Share<br>December 31,<br>2021<br>March 31,<br>2022<br>June 30,<br>2022<br>September 30,<br>2022<br>December 31,<br>2022<br>March 31,<br>2023<br>June 30,<br>2023<br>September 30,<br>2023<br>December 31,<br>2023<br>March 31,<br>2024<br>Book Value Per Common Share $ 11.09 $ 11.12 $ 11.14 $ 11.44 $ 11.80 $ 12.05 $ 12.25 $ 12.47 $ 12.94 $ 13.30<br>Less: Effects of Intangible Assets (0.11) (0.11) (0.11) (0.11) (0.11) (0.10) (0.10) (0.10) (0.10) (0.10)<br>Tangible Book Value Per Common Share $ 10.98 $ 11.01 $ 11.03 $ 11.33 $ 11.69 $ 11.95 $ 12.15 $ 12.37 $ 12.84 $ 13.20<br>Total Common Shares 28,206,566 28,150,389 27,677,372 27,587,978 27,751,950 27,845,244 27,973,995 28,015,505 27,748,965 27,589,827<br>As of and for the quarter ended,<br>As of and for the quarter ended,<br>As of and for the quarter ended,
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