8-K - BWB - Equibles

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

FORM 8-K CURRENT REPORT

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

January 27, 2022

Date of Report

(Date of earliest event reported)

BRIDGEWATER BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

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

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

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

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

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

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

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

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

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

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

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

Emerging growth company ☒

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

Item 2.02 R esults of Operations and Financial Condition.

On January 27, 2022, Bridgewater Bancshares, Inc. (the “Company”) issued a press release announcing its financial results for the three and twelve months ended December 31, 2021. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

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

Item 7.01 R egulation FD Disclosure.

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

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

Item 8.01 Other Events .

On January 27, 2022, in its 2021 fourth quarter earnings release, the Company announced that its Board of Directors had declared a quarterly cash dividend on its 5.875% Non-Cumulative Perpetual Preferred Stock, Series A (“Series A Preferred Stock”). The quarterly cash dividend of $36.72 per share, equivalent to $0.3672 per depository share, each representing a 1/100^th^ interest in a share of the Series A Preferred Stock (Nasdaq: BWBBP), is payable on March 1, 2022, to shareholders of record of the Series A Preferred Stock at the close of business on February 15, 2022.

Item 9.01 Financial Statements and Exhibits.

(d)****Exhibits

Exhibit 99.1	Press Release of Bridgewater Bancshares, Inc., dated January 27, 2022, regarding fourth quarter 2021 financial results
Exhibit 99.2	Investor Presentation dated January 27, 2022
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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: January 27, 2022
	By: /s/ Jerry Baack
	Name: Jerry Baack
	Title: Chairman, Chief Executive Officer and President

Exhibit 99.1

Bridgewater Bancshares, Inc. Announces Record Fourth Quarter 2021 Net Income of $12.5 Million, $0.39 Diluted Earnings Per Common Share

Bridgewater Bancshares, Inc. (Nasdaq: BWB) (the Company), the parent company of Bridgewater Bank (the Bank), today announced net income of $12.5 million for the fourth quarter of 2021, an 8.7% increase over net income of $11.5 million for the third quarter of 2021, and a 151.3% increase over net income of $5.0 million for the fourth quarter of 2020. Net income per diluted common share for the fourth quarter of 2021 was $0.39, a 1.2% decrease compared to $0.40 per diluted common share for the third quarter of 2021, and a 126.1% increase compared to $0.17 per diluted common share for the same period in 2020.

“Bridgewater reported a fourth consecutive quarter of record net income driven by the continuation of many of the same trends and momentum we created throughout 2021,” said Chairman, Chief Executive Officer, and President, Jerry Baack. “During the quarter, we continued to generate strong loan production and gather high-quality deposits across the Twin Cities market, leading to robust balance sheet growth. This level of consistent growth in today’s environment, along with a business model operating with a low 40% adjusted efficiency ratio, stable net interest margin and strong asset quality, remain key differentiators for us. As we look ahead to 2022, we expect to continue to leverage the ongoing M&A-related market disruption and our strengthening brand to drive additional balance sheet and revenue growth; make proactive investments in business scalability, automation and back-office functions; and maintain our highly efficient operating strategy. With a hard-working team of talented professionals supporting our clients every day and a strong capital and liquidity position, we are poised to build on our momentum into 2022 and beyond.”

The Company today also announced that its Board of Directors declared a quarterly cash dividend on its 5.875% Non-Cumulative Perpetual Preferred Stock, Series A ("Series A Preferred Stock"). The quarterly cash dividend of $36.72 per share, equivalent to $0.3672 per depositary share, each representing a 1/100th interest in a share of the Series A Preferred Stock (Nasdaq: BWBBP), is payable on March 1, 2022 to shareholders of record of the Series A Preferred Stock at the close of business on February 15, 2022.

Fourth Quarter 2021 Financial Results


			****			****	Diluted		Nonperforming		Adjusted
ROA		PPNR ROA ^(1)^	****	ROE		****	earnings per share		assets to total assets		efficiency ratio ^(1)^
1.46	%	2.11	%	13.27	%		$	0.39	0.02	%	40.3	%

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

Fourth Quarter 2021 Highlights

●	Diluted earnings per common share were $0.39 for the fourth quarter of 2021, compared to $0.40 per common share for the third quarter of 2021.

●	Payment of the Company’s first quarterly preferred stock dividend negatively impacted diluted earnings per common share by $0.04 in the fourth quarter of 2021, compared to no preferred stock dividend payment in the third quarter of 2021.

●

Annualized return on average assets (ROA) and annualized return on average shareholders’ equity (ROE) for the fourth quarter of 2021 were 1.46% and 13.27%, compared to ROA and ROE of 1.37% and 13.81%, respectively, for the third quarter of 2021. Annualized return on average tangible common equity, a non-GAAP financial measure, was 14.78% for the fourth quarter of 2021, compared to 15.47% for the third quarter of 2021.

●	Pre-provision net revenue (PPNR), a non-GAAP financial measure, was $18.1 million for the fourth quarter of 2021, compared to $17.5 million for the third quarter of 2021. PPNR ROA, a non-GAAP financial measure, was 2.11% for the fourth quarter of 2021, compared to 2.09% for the third quarter of 2021.

●	Gross loans increased $107.5 million in the fourth quarter of 2021, or 15.7% annualized, compared to the third quarter of 2021. Gross loans, excluding Paycheck Protection Program (PPP) loans, increased $135.5 million in the fourth quarter of 2021, or 20.2% annualized, compared to the third quarter of 2021.

●	Deposits increased $92.1 million in the fourth quarter of 2021, or 12.8% annualized, compared to the third quarter of 2021.

●

Net interest margin (on a fully tax-equivalent basis) was 3.51% for the fourth quarter of 2021, compared to 3.54% in the third quarter of 2021. Core net interest margin (on a fully tax-equivalent basis), a non-GAAP financial measure which excludes the impact of loan fees and PPP balances, interest, and fees, expanded 3 basis points from 3.22% in the third quarter of 2021 to 3.25% in the fourth quarter of 2021.

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●	The adjusted efficiency ratio, a non-GAAP financial measure which excludes the impact of certain non-routine income and expenses from noninterest expense, was 40.3% for the fourth quarter of 2021, compared to 41.5% for the third quarter of 2021.

●	A loan loss provision of $1.2 million was recorded in the fourth quarter of 2021 to support strong organic loan growth. The allowance for loan losses to total loans was 1.42% at December 31, 2021, compared to 1.43% at September 30, 2021. The allowance for loan losses to total loans, excluding PPP loans, was 1.43% at December 31, 2021, compared to 1.46% at September 30, 2021.

●	Annualized net loan charge-offs as a percentage of average loans were 0.00% for both the fourth quarter of 2021, and the third quarter of 2021.

●	Tangible book value per share, a non-GAAP financial measure, increased $0.36, or 13.6% annualized, to $10.98 at December 31, 2021, compared to $10.62 at September 30, 2021.

Annual 2021 Highlights

●	Diluted earnings per common share for the year ended December 31, 2021 were $1.54, a 64.8% increase, compared to $0.93 for the year ended December 31, 2020.

●	PPNR, a non-GAAP financial measure, was $67.1 million for the year ended December 31, 2021, an increase of 22.7%, compared to $54.7 million for the year ended December 31, 2020. PPNR ROA, a non-GAAP financial measure, was 2.10% for the year ended December 31, 2021, compared to 2.09% for the year ended December 31, 2020.

●	Gross loans increased $493.0 million at December 31, 2021, or 21.2%, compared to December 31, 2020. Excluding PPP loans, gross loans increased 27.7%, at December 31, 2021, compared to December 31, 2020.

●	Deposits increased $444.6 million at December 31, 2021, or 17.8%, compared to December 31, 2020.

●	Net interest margin (on a fully tax-equivalent basis) was 3.54% for the year ended December 31, 2021, compared to 3.46% for the year ended December 31, 2020. Core net interest margin (on a fully tax-equivalent basis), a non-GAAP financial measure, for the year ended December 31, 2021 was 3.28%, compared to 3.25% for the year ended December 31, 2020.

●	The adjusted efficiency ratio, a non-GAAP financial measure, was 41.0% for the year ended December 31, 2021, compared to 40.5% for the year ended December 31, 2020.

●	Net loan charge-offs as a percentage of average loans were 0.00% for the year ended December 31, 2021, compared to 0.02% for the year ended December 31, 2020.

●	The ratio of nonperforming assets to total assets was 0.02% at December 31, 2021, compared to 0.03% at December 31, 2020.

●	Tangible book value per share, a non-GAAP financial measure, increased 17.9%, or $1.66, to $10.98 at December 31, 2021, compared to $9.31 at December 31, 2020.

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Key Financial Measures


		As of and for the Three Months Ended									As of and for the Year Ended
		December 31,			September 30,			December 31,			December 31,			December 31,
	****	2021		****	2021		****	2020			2021		****	2020
Per Common Share Data
Basic Earnings Per Share		$	0.41		$	0.41		$	0.18		$	1.59		$	0.95
Diluted Earnings Per Share			0.39			0.40			0.17			1.54			0.93
Adjusted Diluted Earnings Per Share^(1)^			0.39			0.41			0.32			1.55			1.12
Book Value Per Share			11.09			10.73			9.43
Tangible Book Value Per Share ^(1)^			10.98			10.62			9.31
Basic Weighted Average Shares Outstanding			28,004,334			28,047,280			28,179,768			28,027,454			28,582,064
Diluted Weighted Average Shares Outstanding			29,038,785			29,110,547			28,823,384			28,968,286			29,170,220
Shares Outstanding at Period End			28,206,566			28,066,822			28,143,493

Selected Performance Ratios
Return on Average Assets (Annualized)			1.46	%		1.37	%		0.70	%		1.43	%		1.04	%
Pre-Provision Net Revenue Return on Average Assets (Annualized) ^(1)^			2.11			2.09			2.30			2.10			2.09
Return on Average Shareholders' Equity (Annualized)			13.27			13.81			7.45			14.45			10.51
Return on Average Tangible Common Equity (Annualized)^(1)^			14.78			15.47			7.55			15.45			10.65
Yield on Interest Earning Assets			4.06			4.14			4.46			4.16			4.51
Yield on Total Loans, Gross			4.49			4.65			4.89			4.60			4.90
Cost of Interest Bearing Liabilities			0.86			0.88			1.24			0.93			1.53
Cost of Total Deposits			0.45			0.48			0.69			0.51			0.93
Net Interest Margin ^(2)^			3.51			3.54			3.61			3.54			3.46
Core Net Interest Margin ^(1)(2)^			3.25			3.22			3.29			3.28			3.25
Efficiency Ratio^(1)^			40.8			43.9			59.0			42.0			49.0
Adjusted Efficiency Ratio ^(1)^			40.3			41.5			36.6			41.0			40.5
Noninterest Expense to Average Assets (Annualized)			1.45			1.58			2.16			1.51			1.73
Adjusted Noninterest Expense to Average Assets (Annualized) ^(1)^			1.43			1.49			1.34			1.47			1.44
Loan to Deposit Ratio			95.7			95.0			93.0
Core Deposits to Total Deposits ^(3)^			85.4			83.3			78.1
Tangible Common Equity to Tangible Assets ^(1)^			8.91			8.81			8.96

Capital Ratios (Bank Only) ^(4)^
Tier 1 Leverage Ratio			11.09	%		10.96	%		10.89	%
Common Equity Tier 1 Risk-based Capital Ratio			11.69			11.88			12.12
Tier 1 Risk-based Capital Ratio			11.69			11.88			12.12
Total Risk-based Capital Ratio			12.94			13.13			13.37

Capital Ratios (Consolidated)^(4)^
Tier 1 Leverage Ratio			10.82	%		10.70	%		9.28	%
Common Equity Tier 1 Risk-based Capital Ratio			9.36			9.47			10.35
Tier 1 Risk-based Capital Ratio			11.43			11.65			10.35
Total Risk-based Capital Ratio			15.55			15.93			14.58

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


	December 31,			September 30,			June 30,		March 31,		December 31,
(dollars in thousands)	2021		****	2021		****	2021		2021		2020
Selected Balance Sheet Data
Total Assets	$	3,477,659		$	3,389,125		$	3,162,612	$	3,072,359	$	2,927,345
Total Loans, Gross		2,819,472			2,712,012			2,594,186		2,426,123		2,326,428
Allowance for Loan Losses		40,020			38,901			37,591		35,987		34,841
Goodwill and Other Intangibles		3,105			3,153			3,200		3,248		3,296

Deposits		2,946,237			2,854,157			2,720,906		2,638,654		2,501,636
Tangible Common Equity^(1)^		309,653			298,135			287,630		275,923		262,109
Total Shareholders' Equity		379,272			367,803			290,830		279,171		265,405
Average Total Assets - Quarter-to-Date		3,403,270			3,332,301			3,076,712		2,940,262		2,816,032
Average Shareholders' Equity - Quarter-to-Date		374,035			330,604			286,311		272,729		265,716

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


	For the Three Months Ended						For the Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
(dollars in thousands)	2021		2021		2020		2021		2020
Selected Income Statement Data
Interest Income	$	33,775	$	33,517	$	30,699	$	128,879	$	114,826
Interest Expense		4,622		4,844		5,858		19,370		26,862
Net Interest Income		29,153		28,673		24,841		109,509		87,964
Provision for Loan Losses		1,150		1,300		3,900		5,150		12,750
Net Interest Income after Provision for Loan Losses		28,003		27,373		20,941		104,359		75,214
Noninterest Income		1,288		1,410		986		5,309		5,839
Noninterest Expense		12,459		13,236		15,258		48,095		45,387
Income Before Income Taxes		16,832		15,547		6,669		61,573		35,666
Provision for Income Taxes		4,318		4,038		1,690		15,886		8,472
Net Income		12,514		11,509		4,979		45,687		27,194
Preferred Stock Dividends		(1,171)		—		—		(1,171)		—
Net Income Available to Common Shareholders	$	11,343	$	11,509	$	4,979	$	44,516	$	27,194

Income Statement

Net Interest Income

Net interest income was $29.2 million for the fourth quarter of 2021, an increase of $480,000, or 1.7%, from $28.7 million in the third quarter of 2021, and an increase of $4.3 million, or 17.4%, from $24.8 million in the fourth quarter of 2020. The linked-quarter and year-over-year increases in net interest income were primarily due to growth in average interest earning assets and lower rates paid on deposits, offset partially by declining yields on loans. Average interest earning assets were $3.32 billion for the fourth quarter of 2021, an increase of $86.3 million, or 2.7%, from $3.23 billion for the third quarter of 2021, and an increase of $561.1 million, or 20.3%, from $2.76 billion for the fourth quarter of 2020. The linked-quarter increase in average interest earning assets was primarily due to continued strong organic growth in the loan portfolio, offset partially by the payoff of PPP loans and the reduction of cash balances. The year-over-year increase in average interest earning assets was primarily due to increased cash balances, continued purchases of investment securities, and strong organic growth in the loan portfolio, offset partially by the payoff of PPP loans.

Net interest margin (on a fully tax-equivalent basis) for the fourth quarter of 2021 was 3.51%, a 3 basis point decrease from 3.54% in the third quarter of 2021, and a 10 basis point decrease from 3.61% in the fourth quarter of 2020. Core net interest margin (on a fully tax-equivalent basis), a non-GAAP financial measure which excludes the impact of loan fees and PPP balances, interest, and fees, for the fourth quarter of 2021 was 3.25%, a 3 basis point increase from 3.22% in the third quarter of 2021, and a 4 basis point decline from 3.29% in the fourth quarter of 2020.

As the PPP loan portfolio pays down, the recognition of fees associated with the originations has benefited net interest margin for each of the past four quarters. The SBA has been forgiving PPP loans, which has accelerated the recognition of PPP fees starting in the fourth quarter of 2020 and continuing through the fourth quarter of 2021. The Company recognized $958,000 of PPP origination fees during the fourth quarter of 2021, compared to $1.6 million during the third quarter of 2021. The elevated fee recognition is illustrated in the 10.51% PPP loan yield for the fourth quarter of 2021, compared to 9.15% for the third quarter of 2021. Remaining PPP origination fees to be recognized as of December 31, 2021 were $898,000.

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The following table summarizes PPP loan originations and net origination fees as of December 31, 2021:



		Originated						Outstanding						Program Lifetime
		Number			Principal			Number			Principal			Net Origination			Net Origination
(dollars in thousands)	****	of Loans		****	Balance		****	of Loans		****	Balance		****	Fees Generated		****	Fees Earned
Round One PPP Loans			1,200		$	181,600			17		$	1,109		$	5,706		$	5,698
Round Two PPP Loans			651			78,386			136			25,053			3,544			2,654
Totals			1,851		$	259,986			153		$	26,162		$	9,250		$	8,352

Interest income was $33.8 million for the fourth quarter of 2021, an increase of $258,000, or 0.8%, from $33.5 million in the third quarter of 2021, and an increase of $3.1 million, or 10.0%, from $30.7 million in the fourth quarter of 2020. The yield on interest earning assets (on a fully tax-equivalent basis) was 4.06% in the fourth quarter of 2021, compared to 4.14% in the third quarter of 2021, and 4.46% in the fourth quarter of 2020. The linked-quarter decrease in the yield on interest earning assets was primarily due to the historically low interest rate environment resulting in a lower core loan yield, as well as lower PPP origination fees recognized during the period. The year-over-year decline in the yield on interest earning assets was primarily due to excess cash balances and the historically low interest rate environment resulting in lower loan and security yields.

Loan interest income and loan fees remain the primary contributing factors to the changes in yield on interest earning assets. The aggregate loan yield, excluding PPP loans, decreased to 4.41% in the fourth quarter of 2021, which was 10 basis points lower than 4.51% in the third quarter of 2021, and 46 basis points lower than 4.87% in the fourth quarter of 2020. While loan fees have maintained a relatively stable contribution to the aggregate loan yield, the historically low yield curve has resulted in a declining core yield on loans in comparison to both prior periods.

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


	Three Months Ended
	December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020
Interest	4.20	%	4.28	%	4.37	%	4.50	%	4.59	%
Fees	0.21		0.23		0.17		0.22		0.28
Yield on Loans, Excluding PPP Loans	4.41	%	4.51	%	4.54	%	4.72	%	4.87	%

Interest expense was $4.6 million for the fourth quarter of 2021, a decrease of $222,000, or 4.6%, from $4.8 million in the third quarter of 2021, and a decrease of $1.2 million, or 21.1%, from $5.9 million in the fourth quarter of 2020. The cost of interest bearing liabilities declined 2 basis points on a linked-quarter basis from 0.88% in the third quarter of 2021 to 0.86% in the fourth quarter of 2021, primarily due to lower rates paid on deposits. On a year-over-year basis, the cost of interest bearing liabilities decreased 38 basis points from 1.24% in the fourth quarter of 2020 to 0.86% in the fourth quarter of 2021, primarily due to lower rates paid on deposits, the payoff of the Company’s notes payable, and the early extinguishment of $94.0 million of longer term FHLB advances, offset partially by strong growth of interest bearing deposits and additional subordinated debentures.

Interest expense on deposits was $3.2 million for the fourth quarter of 2021, a decrease of $176,000, or 5.2%, from $3.4 million in the third quarter of 2021, and a decrease of $838,000, or 20.5%, from $4.1 million in the fourth quarter of 2020. The cost of total deposits declined 3 basis points on a linked-quarter basis from 0.48% in the third quarter of 2021, and declined 24 basis points on a year-over-year basis from 0.69% in the fourth quarter of 2020, to 0.45% in the fourth quarter of 2021, primarily due to deposit rate cuts consistent with a lower rate environment and the continued downward repricing of time deposits.

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A summary of the Company’s average balances, interest yields and rates, and net interest margin for the three months ended December 31, 2021, September 30, 2021, and December 31, 2020 is as follows:


		For the Three Months Ended																							****
		December 31, 2021								September 30, 2021							****	December 31, 2020							****
		Average			Interest			Yield/		Average			Interest			Yield/	****	Average			Interest			Yield/	****
	****	Balance		****	& Fees		****	Rate	****	Balance		****	& Fees		****	Rate	****	Balance		****	& Fees		****	Rate	****
(dollars in thousands)
Interest Earning Assets:
Cash Investments		$	146,744		$	65		0.18	%	$	187,405		$	67		0.14	%	$	79,896		$	32		0.16	%
Investment Securities:
Taxable Investment Securities			341,325			1,893		2.20			314,367			1,751		2.21			290,093			1,632		2.24
Tax-Exempt Investment Securities^(1)^			71,602			782		4.33			71,801			737		4.07			81,370			888		4.34
Total Investment Securities			412,927			2,675		2.57			386,168			2,488		2.56			371,463			2,520		2.70
Paycheck Protection Program Loans ^(2)^			39,900			1,057		10.51			76,006			1,753		9.15			165,099			2,097		5.05
Loans ^(1)(2)^			2,715,722			30,154		4.41			2,579,021			29,348		4.51			2,136,229			26,168		4.87
Total Loans			2,755,622			31,211		4.49			2,655,027			31,101		4.65			2,301,328			28,265		4.89
Federal Home Loan Bank Stock			5,310			59		4.39			5,701			68		4.65			6,856			92		5.35
Total Interest Earning Assets			3,320,603			34,010		4.06	%		3,234,301			33,724		4.14	%		2,759,543			30,909		4.46	%
Noninterest Earning Assets			82,667								98,000								56,489
Total Assets		$	3,403,270							$	3,332,301							$	2,816,032
Interest Bearing Liabilities:
Deposits:
Interest Bearing Transaction Deposits		$	499,475		$	548		0.43	%	$	479,580		$	562		0.47	%	$	353,806		$	420		0.47	%
Savings and Money Market Deposits			803,848			876		0.43			801,354			904		0.45			538,030			1,003		0.74
Time Deposits			299,823			830		1.10			318,222			928		1.16			362,469			1,607		1.76
Brokered Deposits			404,438			987		0.97			440,167			1,023		0.92			433,037			1,049		0.96
Total Interest Bearing Deposits			2,007,584			3,241		0.64			2,039,323			3,417		0.66			1,687,342			4,079		0.96
Federal Funds Purchased			10			—		0.67			—			—		—			4,072			4		0.33
Notes Payable			—			—		—			—			—		—			11,000			105		3.77
FHLB Advances			44,185			162		1.46			54,130			213		1.56			99,196			551		2.21
Subordinated Debentures			92,189			1,219		5.25			91,337			1,214		5.27			73,696			1,119		6.04
Total Interest Bearing Liabilities			2,143,968			4,622		0.86	%		2,184,790			4,844		0.88	%		1,875,306			5,858		1.24	%
Noninterest Bearing Liabilities:
Noninterest Bearing Transaction Deposits			861,473								784,148								654,299
Other Noninterest Bearing Liabilities			23,794								32,759								20,711
Total Noninterest Bearing Liabilities			885,267								816,907								675,010
Shareholders' Equity			374,035								330,604								265,716
Total Liabilities and Shareholders' Equity		$	3,403,270							$	3,332,301							$	2,816,032
Net Interest Income / Interest Rate Spread						29,388		3.20	%					28,880		3.26	%					25,051		3.22	%
Net Interest Margin ^(3)^								3.51	%							3.54	%							3.61	%
Taxable Equivalent Adjustment:
Tax-Exempt Investment Securities and Loans						(235)								(207)								(210)
Net Interest Income					$	29,153							$	28,673							$	24,841

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

Page 6 of 19

Provision for Loan Losses

The provision for loan losses was $1.2 million for the fourth quarter of 2021, a decrease of $150,000 from $1.3 million for the third quarter of 2021, and a decrease of $2.8 million from $3.9 million for the fourth quarter of 2020. The provision recorded in the fourth quarter of 2021 was primarily attributable to growth of the loan portfolio. The allowance for loan losses to total loans was 1.42% at December 31, 2021, compared to 1.43% at September 30, 2021, and 1.50% at December 31, 2020. The allowance for loan losses to total loans, excluding PPP loans, was 1.43% at December 31, 2021, compared to 1.46% at September 30, 2021, and 1.59% at December 31, 2020.

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

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


		Three Months Ended								Year Ended
		December 31,			September 30,			December 31,		December 31,			December 31,
(dollars in thousands)	****	2021		****	2021		****	2020		2021		****	2020
Balance at Beginning of Period		$	38,901		$	37,591		$	31,381	$	34,841		$	22,526
Provision for Loan Losses			1,150			1,300			3,900		5,150			12,750
Charge-offs			(37)			(20)			(463)		(74)			(517)
Recoveries			6			30			23		103			82
Balance at End of Period		$	40,020		$	38,901		$	34,841	$	40,020		$	34,841

Noninterest Income

Noninterest income was $1.3 million for the fourth quarter of 2021, a decrease of $122,000 from $1.4 million for the third quarter of 2021, and an increase of $302,000 from $986,000 for the fourth quarter of 2020. The linked-quarter decrease was primarily due to decreased gains on sales of securities and letter of credit fees. The year-over-year increase was primarily due to increased letter of credit fees and bank-owned life insurance income.

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


	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
(dollars in thousands)	2021		****	2021		****	2020		****	2021		****	2020		****
Noninterest Income:
Customer Service Fees	$	274		$	268		$	251		$	1,007		$	826
Net Gain on Sales of Securities		—			48			30			750			1,503
Letter of Credit Fees		541			577			477			1,676			1,503
Debit Card Interchange Fees		149			143			118			563			428
Swap Fees		—			—			—			—			907
Bank-Owned Life Insurance		150			166			—			316			—
Other Income		174			208			110			997			672
Totals	$	1,288		$	1,410		$	986		$	5,309		$	5,839

Noninterest Expense

Noninterest expense was $12.5 million for the fourth quarter of 2021, a decrease of $777,000 from $13.2 million for the third quarter of 2021, and a decrease of $2.8 million from $15.3 million for the fourth quarter of 2020. The linked-quarter decrease was primarily due to lower salaries and employee benefits related to higher bonus accruals in the third quarter of 2021, and $582,000 of debt prepayment fees associated with a partial early redemption of $11.3 million of subordinated debentures issued in July 2017 that occurred in the third quarter of 2021. The year-over-year decrease was primarily attributable to $5.6 million of debt prepayment fees associated with the early extinguishment of $69.0 million of FHLB term advances incurred in the fourth quarter of 2020, partially offset by an increase in salaries and employee benefits, and marketing and advertising expenses.

Page 7 of 19

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


	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
(dollars in thousands)	2021		****	2021		****	2020		****	2021		****	2020
Noninterest Expense:
Salaries and Employee Benefits	$	7,966		$	8,309		$	6,216		$	30,889		$	25,568
Occupancy and Equipment		939			942			979			3,916			3,258
FDIC Insurance Assessment		345			355			270			1,305			788
Data Processing		306			325			293			1,222			1,027
Professional and Consulting Fees		719			708			566			2,523			1,966
Information Technology and Telecommunications		554			598			397			2,163			1,374
Marketing and Advertising		469			418			143			1,487			788
Intangible Asset Amortization		48			48			48			191			191
Amortization of Tax Credit Investments		152			152			146			562			738
Debt Prepayment Fees		—			582			5,613			582			7,043
Other Expense		961			799			587			3,255			2,646
Totals	$	12,459		$	13,236		$	15,258		$	48,095		$	45,387

The Company continues to add key talent across the organization, reaching 220 full-time equivalent employees at December 31, 2021, compared to 219 employees at September 30, 2021, and 183 employees at December 31, 2020.

The efficiency ratio, a non-GAAP financial measure, was 40.8% for the fourth quarter of 2021, compared to 43.9% for the third quarter of 2021, and 59.0% for the fourth quarter of 2020. Excluding the impact of certain non-routine income and expenses, the adjusted efficiency ratio, a non-GAAP financial measure, was 40.3% for the fourth quarter of 2021, 41.5% for the third quarter of 2021 and 36.6% for the fourth quarter of 2020. The efficiencies of the Company’s “branch-light” model have positioned the Company well, and going forward, provide more flexibility for the Company to make significant investments in technology as the industry adapts to evolving client behavior.

Income Taxes

The effective combined federal and state income tax rate for the fourth quarter of 2021 was 25.7%, a decrease from 26.0% for the third quarter of 2021 and an increase from 25.3% for the fourth quarter of 2020. The effective combined federal and state income tax rate for the year ended December 31, 2021 was 25.8%, compared to 23.8% for the year ended December 31, 2020.

Balance Sheet

Total assets at December 31, 2021 were $3.48 billion, a 2.6% increase from $3.39 billion at September 30, 2021, and an 18.8% increase from $2.93 billion at December 31, 2020. The linked-quarter increase in total assets was primarily due to strong organic loan growth, offset partially by a decrease in cash and cash equivalents. The year-over-year increase in total assets was primarily due to robust organic loan growth, as well as the continued purchases of investment securities.

Total gross loans at December 31, 2021 were $2.82 billion, an increase of $107.5 million, or 4.0%, over total gross loans of $2.71 billion at September 30, 2021, and an increase of $493.0 million, or 21.2%, over total gross loans of $2.33 billion at December 31, 2020. The increase in the loan portfolio during the fourth quarter of 2021 was primarily due to growth in the construction and land development, multifamily and CRE nonowner occupied segments, offset partially by the payoff of PPP loans. When excluding PPP loans, gross loans grew $135.5 million during the fourth quarter of 2021, or 20.2% on an annualized basis. The Company's continued strong loan growth has been driven by the expansion of its talented lending teams, PPP-related new client acquisitions, the strong, growing brand of the Bank in the Twin Cities market and the M&A-related market disruption in the Twin Cities resulting in client and banker acquisition opportunities.

Page 8 of 19

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


	December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020
(dollars in thousands)
Commercial	$	360,169	$	350,081	$	321,474	$	301,023	$	304,220
Paycheck Protection Program		26,162		54,190		99,072		163,258		138,454
Construction and Land Development		281,474		257,167		251,573		193,372		170,217
Real Estate Mortgage:
1 - 4 Family Mortgage		305,317		290,535		277,943		294,964		294,479
Multifamily		910,243		865,172		790,275		665,415		626,465
CRE Owner Occupied		111,096		101,834		87,507		79,665		75,604
CRE Nonowner Occupied		818,569		786,271		758,101		720,396		709,300
Total Real Estate Mortgage Loans		2,145,225		2,043,812		1,913,826		1,760,440		1,705,848
Consumer and Other		6,442		6,762		8,241		8,030		7,689
Total Loans, Gross		2,819,472		2,712,012		2,594,186		2,426,123		2,326,428
Allowance for Loan Losses		(40,020)		(38,901)		(37,591)		(35,987)		(34,841)
Net Deferred Loan Fees		(9,535)		(10,199)		(11,450)		(11,273)		(9,151)
Total Loans, Net	$	2,769,917	$	2,662,912	$	2,545,145	$	2,378,863	$	2,282,436

Total deposits at December 31, 2021 were $2.95 billion, an increase of $92.1 million, or 3.2%, over total deposits of $2.85 billion at September 30, 2021, and an increase of $444.6 million, or 17.8%, over total deposits of $2.50 billion at December 31, 2020. Deposit growth in the fourth quarter of 2021 was primarily due to an increase in noninterest bearing and interest bearing transaction deposits and savings and money market deposits, offset partially by declines in time deposits and brokered deposits. Similar to the loan portfolio, the growth in core deposits has been a result of successful new client and banker acquisition initiatives and the strong, growing brand of the Bank in the Twin Cities market. However, given the prospect for higher interest rates, management believes deposits could experience fluctuations in future periods.

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


		December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020
(dollars in thousands)	****
Noninterest Bearing Transaction Deposits		$	875,084	$	846,490	$	758,023	$	712,999	$	671,903
Interest Bearing Transaction Deposits			544,789		488,785		432,123		433,344		366,290
Savings and Money Market Deposits			863,567		791,861		761,485		791,583		657,617
Time Deposits			293,474		309,824		321,857		344,581		353,543
Brokered Deposits			369,323		417,197		447,418		356,147		452,283
Total Deposits		$	2,946,237	$	2,854,157	$	2,720,906	$	2,638,654	$	2,501,636

Capital

Total shareholders’ equity at December 31, 2021 was $379.3 million, an increase of $11.5 million, or 3.1%, over total shareholders’ equity of $367.8 million at September 30, 2021, and an increase of $113.9 million, or 42.9%, over total shareholders’ equity of $265.4 million at December 31, 2020. The linked-quarter increase was due to net income retained. The year-over-year increase was due to net income retained, the issuance of preferred stock and an increase in unrealized gains in the securities and derivatives portfolios.

During the fourth quarter of 2021, the Company repurchased 3,320 shares of its common stock. Shares were repurchased at a weighted average price of $16.36 for a total of $54,000. The Company remains committed to maintaining strong capital levels while enhancing shareholder value as it strategically executes its stock repurchase program in this fluid economic environment.

Tangible book value per share, a non-GAAP financial measure, was $10.98 as of December 31, 2021, an increase of 3.3% from $10.62 as of September 30, 2021, and an increase of 17.9% from $9.31 as of December 31, 2020. Tangible common equity as a percentage of tangible assets, a non-GAAP financial measure, was 8.91% at December 31, 2021, compared to 8.81% at September 30, 2021, and 8.96% at December 31, 2020.

Asset Quality

Annualized net charge-offs as a percent of average loans for both the third and fourth quarters of 2021 were 0.00%, compared to 0.08% for the fourth quarter of 2020. At December 31, 2021, the Company’s nonperforming assets, which include nonaccrual loans, loans past due 90 days and still accruing, and foreclosed assets, were $722,000, or 0.02% of total assets, as compared to $734,000, or 0.02% of total assets at September 30, 2021, and $775,000 or 0.03% of total assets at December 31, 2020.

Page 9 of 19

The Company has increased oversight and analysis of all segments of the loan portfolio in response to the COVID-19 pandemic, especially in vulnerable industries such as hospitality and restaurants, to proactively monitor evolving credit risk. Loans that have potential weaknesses that warrant a watchlist risk rating at December 31, 2021 totaled $49.3 million, compared to $67.4 million at September 30, 2021, and $44.8 million at December 31, 2020. As the COVID-19 pandemic continues to evolve, the length and extent of the economic uncertainty may result in further watchlist or adverse classifications in the loan portfolio. Loans that warranted a substandard risk rating at December 31, 2021 totaled $22.6 million, compared to $7.7 million at September 30, 2021, and $15.2 million at December 31, 2020. The linked-quarter increase to substandard loans was primarily due to the migration of two relationships previously listed as watch and both negatively impacted by the pandemic. Management continues to actively work with the borrowers and closely monitor substandard credits.

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


		As of and for the Three Months Ended
		December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)	****	2021		****	2021		****	2021		****	2021		****	2020		****
Selected Asset Quality Data
Loans 30-89 Days Past Due		$	49		$	18		$	—		$	—		$	13
Loans 30-89 Days Past Due to Total Loans			0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Nonperforming Loans		$	722		$	734		$	761		$	770		$	775
Nonperforming Loans to Total Loans			0.03	%		0.03	%		0.03	%		0.03	%		0.03	%
Foreclosed Assets		$	—		$	—		$	—		$	—		$	—
Nonaccrual Loans to Total Loans			0.03	%		0.03	%		0.03	%		0.03	%		0.03	%
Nonaccrual Loans and Loans Past Due 90 Days and Still Accruing to Total Loans			0.03			0.03			0.03			0.03			0.03
Nonperforming Assets ^(1)^		$	722		$	734		$	761		$	770		$	775
Nonperforming Assets to Total Assets ^(1)^			0.02	%		0.02	%		0.02	%		0.03	%		0.03	%
Allowance for Loan Losses to Total Loans			1.42			1.43			1.45			1.48			1.50
Allowance for Loan Losses to Total Loans, Excluding PPP Loans			1.43			1.46			1.50			1.59			1.59
Allowance for Loans Losses to Nonaccrual Loans			5,542.94			5,299.86			4,939.68			4,673.64			4,495.61
Net Loan Charge-Offs (Recoveries) (Annualized) to Average Loans			0.00			0.00			0.00			(0.01)			0.08

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

The Company developed programs for clients who experienced business and personal disruptions due to the COVID-19 pandemic by providing interest-only modifications, loan payment deferrals, and extended amortization modifications. In accordance with interagency regulatory guidance and the CARES Act, qualifying loans modified in response to the COVID-19 pandemic are not considered troubled debt restructurings. The Company had 12 modified loans totaling $35.0 million outstanding as of December 31, 2021, representing 1.3% of the total loan portfolio, excluding PPP loans, which is down slightly from $35.4 million at September 30, 2021.

Page 10 of 19

The following table presents a rollforward of loan modification activity, by modification type, from September 30, 2021 to December 31, 2021:


(dollars in thousands)	Interest-Only		Extended Amortization		Total
Principal Balance - Beginning of Period	$	30,597	$	4,764	$	35,361
Modification Expired		(468)		—		(468)
Net Principal Advances (Payments)		120		(24)		96
Principal Balance - End of Period	$	30,249	$	4,740	$	34,989

About the Company

Bridgewater Bancshares, Inc. (Nasdaq: BWB) is a St. Louis Park, Minnesota-based financial holding company. Bridgewater's banking subsidiary, Bridgewater Bank, is a premier, full-service Twin Cities bank dedicated to serving the diverse needs of commercial real estate investors, entrepreneurs, business clients and high-net-worth individuals. By pairing a range of deposit, lending and business services solutions with a responsive service model, Bridgewater has seen continuous growth and profitability. With total assets of $3.5 billion and seven branches as of December 31, 2021, Bridgewater is considered one of the largest locally led banks in the State of Minnesota, and has received numerous awards for its growth, banking services and esteemed corporate culture.

Investor Relations Contact:

Justin Horstman

Director of Investor Relations

investorrelations@bwbmn.com

952-542-5169

Use of Non-GAAP financial measures

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

Forward-Looking Statements

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

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

cybersecurity-related incidents; interruptions involving our information technology and telecommunications systems or third-party servicers; competition in the financial services industry, including from nonbank competitors such as credit unions and “fintech” companies; the effectiveness of our risk management framework; the commencement and outcome of litigation and other legal proceedings and regulatory actions against us; the impact of recent and future legislative and regulatory changes, including changes to federal and state corporate tax rates; interest rate risk, including the effects of anticipated rate increases by the Federal Reserve; fluctuations in the values of the securities held in our securities portfolio; the imposition of tariffs or other governmental policies impacting the value of products produced by our commercial borrowers; severe weather, natural disasters, wide spread disease or pandemics (including the COVID-19 pandemic), acts of war or terrorism or other adverse external events; potential impairment to the goodwill we recorded in connection with our past acquisition; changes to U.S. or state tax laws, regulations and guidance, including recent proposals to increase the federal corporate tax rate; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission.

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

Page 12 of 19

Bridgewater Bancshares, Inc. and Subsidiaries Consolidated Balance Sheets

(dollars in thousands, except share data)


		December 31,			September 30,			December 31,
	****	2021		****	2021		****	2020
		(Unaudited)			(Unaudited)
ASSETS
Cash and Cash Equivalents		$	143,473		$	189,502		$	160,675
Bank-Owned Certificates of Deposit			1,876			1,877			2,860
Securities Available for Sale, at Fair Value			439,362			413,149			390,629
Loans, Net of Allowance for Loan Losses of $40,020 at December 31, 2021 (unaudited), $38,901 at September 30, 2021 (unaudited) and $34,841 at December 31, 2020			2,769,917			2,662,912			2,282,436
Federal Home Loan Bank (FHLB) Stock, at Cost			5,242			5,442			5,027
Premises and Equipment, Net			49,395			49,803			50,987
Accrued Interest			9,186			8,550			9,172
Goodwill			2,626			2,626			2,626
Other Intangible Assets, Net			479			527			670
Other Assets			56,103			54,737			22,263
Total Assets		$	3,477,659		$	3,389,125		$	2,927,345

LIABILITIES AND EQUITY
LIABILITIES
Deposits:
Noninterest Bearing		$	875,084		$	846,490		$	671,903
Interest Bearing			2,071,153			2,007,667			1,829,733
Total Deposits			2,946,237			2,854,157			2,501,636
Notes Payable			—			—			11,000
FHLB Advances			42,500			47,500			57,500
Subordinated Debentures, Net of Issuance Costs			92,239			92,153			73,739
Accrued Interest Payable			1,409			1,656			1,615
Other Liabilities			16,002			25,856			16,450
Total Liabilities			3,098,387			3,021,322			2,661,940

SHAREHOLDERS' EQUITY
Preferred Stock- $0.01 par value; Authorized 10,000,000
Preferred Stock - Issued and Outstanding 2,760,000 Series A shares ($25 liquidation preference) at December 31, 2021 (unaudited), 2,760,000 at September 30, 2021 (unaudited) and -0- at December 31, 2020			66,514			66,515			—
Common Stock- $0.01 par value; Authorized 75,000,000
Common Stock - Issued and Outstanding 28,206,566 at December 31, 2021 (unaudited), 28,066,822 at September 30, 2021 (unaudited) and 28,143,493 at December 31, 2020			282			281			281
Additional Paid-In Capital			104,123			103,471			103,714
Retained Earnings			199,347			188,004			154,831
Accumulated Other Comprehensive Income			9,006			9,532			6,579
Total Shareholders' Equity			379,272			367,803			265,405
Total Liabilities and Shareholders' Equity		$	3,477,659		$	3,389,125		$	2,927,345

Page 13 of 19

Bridgewater Bancshares, Inc. and SubsidiariesConsolidated Statements of Income

(dollars in thousands, except per share data)


		Three Months Ended									Year Ended
		December 31,			September 30,			December 31,			December 31,			December 31,
	****	2021		****	2021		****	2020		****	2021		****	2020
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
INTEREST INCOME
Loans, Including Fees		$	31,140		$	31,049		$	28,242		$	118,845		$	105,492
Investment Securities			2,511			2,333			2,333			9,576			8,720
Other			124			135			124			458			614
Total Interest Income			33,775			33,517			30,699			128,879			114,826

INTEREST EXPENSE
Deposits			3,241			3,417			4,079			13,842			19,813
Notes Payable			—			—			105			61			439
FHLB Advances			162			213			551			831			3,390
Subordinated Debentures			1,219			1,214			1,119			4,630			3,109
Federal Funds Purchased			—			—			4			6			111
Total Interest Expense			4,622			4,844			5,858			19,370			26,862

NET INTEREST INCOME			29,153			28,673			24,841			109,509			87,964
Provision for Loan Losses			1,150			1,300			3,900			5,150			12,750

NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES			28,003			27,373			20,941			104,359			75,214

NONINTEREST INCOME
Customer Service Fees			274			268			251			1,007			826
Net Gain on Sales of Available for Sale Securities			—			48			30			750			1,503
Other Income			1,014			1,094			705			3,552			3,510
Total Noninterest Income			1,288			1,410			986			5,309			5,839

NONINTEREST EXPENSE
Salaries and Employee Benefits			7,966			8,309			6,216			30,889			25,568
Occupancy and Equipment			939			942			979			3,916			3,258
Other Expense			3,554			3,985			8,063			13,290			16,561
Total Noninterest Expense			12,459			13,236			15,258			48,095			45,387

INCOME BEFORE INCOME TAXES			16,832			15,547			6,669			61,573			35,666
Provision for Income Taxes			4,318			4,038			1,690			15,886			8,472
NET INCOME			12,514			11,509			4,979			45,687			27,194
Preferred Stock Dividends			1,171			—			—			1,171			—
NET INCOME TO COMMON SHAREHOLDERS		$	11,343		$	11,509		$	4,979		$	44,516		$	27,194

EARNINGS PER SHARE
Basic		$	0.41		$	0.41		$	0.18		$	1.59		$	0.95
Diluted			0.39			0.40			0.17			1.54			0.93
Dividends Paid Per Common Share			—			—			—			—			—

Page 14 of 19

Bridgewater Bancshares, Inc. and SubsidiariesAnalysis of Average Balances, Yields and Rates

(dollars in thousands, except per share data)


		For the Year Ended
		December 31, 2021								December 31, 2020							****
		Average			Interest			Yield/		Average			Interest			Yield/	****
	****	Balance		****	& Fees		****	Rate	****	Balance		****	& Fees		****	Rate	****
(dollars in thousands)
Interest Earning Assets:
Cash Investments		$	132,188		$	199		0.15	%	$	80,113		$	170		0.21	%
Investment Securities:
Taxable Investment Securities			317,954			7,015		2.21			234,873			5,712		2.43
Tax-Exempt Investment Securities^(1)^			75,313			3,242		4.30			87,587			3,807		4.35
Total Investment Securities			393,267			10,257		2.61			322,460			9,519		2.95
Paycheck Protection Program Loans ^(2)^			103,151			6,441		6.24			122,240			4,143		3.39
Loans ^(1)(2)^			2,481,706			112,587		4.54			2,032,180			101,469		4.99
Total Loans			2,584,857			119,028		4.60			2,154,420			105,612		4.90
Federal Home Loan Bank Stock			5,571			259		4.65			8,866			444		5.01
Total Interest Earning Assets			3,115,883			129,743		4.16	%		2,565,859			115,745		4.51	%
Noninterest Earning Assets			73,917								51,720
Total Assets		$	3,189,800							$	2,617,579
Interest Bearing Liabilities:
Deposits:
Interest Bearing Transaction Deposits		$	441,528		$	2,052		0.46	%	$	295,036		$	1,626		0.55	%
Savings and Money Market Deposits			773,779			3,729		0.48			523,520			5,341		1.02
Time Deposits			323,638			4,099		1.27			374,195			7,806		2.09
Brokered Deposits			406,863			3,962		0.97			348,126			5,040		1.45
Total Interest Bearing Deposits			1,945,808			13,842		0.71			1,540,877			19,813		1.29
Federal Funds Purchased			2,479			6		0.24			7,239			111		1.53
Notes Payable			1,658			61		3.66			11,749			439		3.73
FHLB Advances			53,294			831		1.56			148,524			3,390		2.28
Subordinated Debentures			82,865			4,630		5.59			50,954			3,109		6.10
Total Interest Bearing Liabilities			2,086,104			19,370		0.93	%		1,759,343			26,862		1.53	%
Noninterest Bearing Liabilities:
Noninterest Bearing Transaction Deposits			764,087								579,595
Other Noninterest Bearing Liabilities			23,372								19,905
Total Noninterest Bearing Liabilities			787,459								599,500
Shareholders' Equity			316,237								258,736
Total Liabilities and Shareholders' Equity		$	3,189,800							$	2,617,579
Net Interest Income / Interest Rate Spread						110,373		3.23	%					88,883		2.98	%
Net Interest Margin ^(3)^								3.54	%							3.46	%
Taxable Equivalent Adjustment:
Tax-Exempt Investment Securities						(864)								(919)
Net Interest Income					$	109,509							$	87,964

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

Page 15 of 19

Non-GAAP Financial Measures

(dollars in thousands) (unaudited)


		For the Three Months Ended									For the Year Ended
		December 31,			September 30,			December 31,			December 31,			December 31,
	****	2021		****	2021			2020			2021		****	2020		****
Pre-Provision Net Revenue
Noninterest Income		$	1,288		$	1,410		$	986		$	5,309		$	5,839
Less: Gain on sales of Securities			—			(48)			(30)			(750)			(1,503)
Total Operating Noninterest Income			1,288			1,362			956			4,559			4,336
Plus: Net Interest Income			29,153			28,673			24,841			109,509			87,964
Net Operating Revenue		$	30,441		$	30,035		$	25,797		$	114,068		$	92,300

Noninterest Expense		$	12,459		$	13,236		$	15,258		$	48,095		$	45,387
Less: Amortization of Tax Credit Investments			(152)			(152)			(146)			(562)			(738)
Less: Debt Prepayment Fees			—			(582)			(5,613)			(582)			(7,043)
Total Operating Noninterest Expense		$	12,307		$	12,502		$	9,499		$	46,951		$	37,606

Pre-Provision Net Revenue		$	18,134		$	17,533		$	16,298		$	67,117		$	54,694

Plus:
Non-Operating Revenue Adjustments			—			48			30			750			1,503
Less:
Provision for Loan Losses			1,150			1,300			3,900			5,150			12,750
Non-Operating Expense Adjustments			152			734			5,759			1,144			7,781
Provision for Income Taxes			4,318			4,038			1,690			15,886			8,472
Net Income		$	12,514		$	11,509		$	4,979		$	45,687		$	27,194

Average Assets		$	3,403,270		$	3,332,301		$	2,816,032		$	3,189,800		$	2,617,579
Pre-Provision Net Revenue Return on Average Assets			2.11	%		2.09	%		2.30	%		2.10	%		2.09	%


		As of and for the Three Months Ended										As of and for the Year Ended
		December 31,			September 30,			December 31,				December 31,			December 31,
	****	2021		****	2021		****	2020		****	****	2021		****	2020		****
Core Net Interest Margin
Net Interest Income (Tax-Equivalent Basis)		$	29,388		$	28,880		$	25,051			$	110,373		$	88,883
Less: Loan Fees			(1,462)			(1,487)			(1,514)				(5,173)			(5,283)
Less: PPP Interest and Fees			(1,057)			(1,753)			(2,097)				(6,441)			(4,143)
Core Net Interest Income		$	26,869		$	25,640		$	21,440			$	98,759		$	79,457

Average Interest Earning Assets			3,320,603			3,234,301			2,759,543				3,115,883			2,565,859
Less: Average PPP Loans			(39,900)			(76,006)			(165,099)				(103,151)			(122,240)
Core Average Interest Earning Assets		$	3,280,703		$	3,158,295		$	2,594,444			$	3,012,732		$	2,443,619
Core Net Interest Margin			3.25	%		3.22	%		3.29	%			3.28	%		3.25	%

Page 16 of 19

Non-GAAP Financial Measures

(dollars in thousands) (unaudited)


	For the Three Months Ended									For the Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2021			2021			2020			2021			2020
Efficiency Ratio
Noninterest Expense	$	12,459		$	13,236		$	15,258		$	48,095		$	45,387
Less: Amortization of Intangible Assets		(48)			(48)			(48)			(191)			(191)
Adjusted Noninterest Expense	$	12,411		$	13,188		$	15,210		$	47,904		$	45,196
Net Interest Income	$	29,153		$	28,673		$	24,841		$	109,509		$	87,964
Noninterest Income		1,288			1,410			986			5,309			5,839
Less: Gain on Sales of Securities		—			(48)			(30)			(750)			(1,503)
Adjusted Operating Revenue	$	30,441		$	30,035		$	25,797		$	114,068		$	92,300
Efficiency Ratio		40.8	%		43.9	%		59.0	%		42.0	%		49.0	%

Adjusted Efficiency Ratio
Noninterest Expense	$	12,459		$	13,236		$	15,258		$	48,095		$	45,387
Less: Amortization of Tax Credit Investments		(152)			(152)			(146)			(562)			(738)
Less: Debt Prepayment Fees		—			(582)			(5,613)			(582)			(7,043)
Less: Amortization of Intangible Assets		(48)			(48)			(48)			(191)			(191)
Adjusted Noninterest Expense	$	12,259		$	12,454		$	9,451		$	46,760		$	37,415
Net Interest Income	$	29,153		$	28,673		$	24,841		$	109,509		$	87,964
Noninterest Income		1,288			1,410			986			5,309			5,839
Less: Gain on Sales of Securities		—			(48)			(30)			(750)			(1,503)
Adjusted Operating Revenue	$	30,441		$	30,035		$	25,797		$	114,068		$	92,300
Adjusted Efficiency Ratio		40.3	%		41.5	%		36.6	%		41.0	%		40.5	%


		For the Three Months Ended										For the Year Ended
		December 31,			September 30,			December 31,				December 31,			December 31,
	****	2021		****	2021		****	2020		****	****	2021		****	2020		****
Adjusted Noninterest Expense to Average Assets (Annualized)
Noninterest Expense		$	12,459		$	13,236		$	15,258			$	48,095		$	45,387
Less: Amortization of Tax Credit Investments			(152)			(152)			(146)				(562)			(738)
Less: Debt Prepayment Fees			—			(582)			(5,613)				(582)			(7,043)
Adjusted Noninterest Expense		$	12,307		$	12,502		$	9,499			$	46,951		$	37,606

Average Assets		$	3,403,270		$	3,332,301		$	2,816,032			$	3,189,800		$	2,617,579
Adjusted Noninterest Expense to Average Assets (Annualized)			1.43	%		1.49	%		1.34	%			1.47	%		1.44	%

Page 17 of 19

Non-GAAP Financial Measures

(dollars in thousands) (unaudited)


	As of and for the Three Months Ended									As of and for the Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2021			2021			2020			2021			2020
Tangible Common Equity and Tangible Common Equity/Tangible Assets
Total Shareholders' Equity	$	379,272		$	367,803		$	265,405
Less: Preferred Stock		(66,514)			(66,515)			—
Total Common Shareholders' Equity		312,758			301,288			265,405
Less: Intangible Assets		(3,105)			(3,153)			(3,296)
Tangible Common Equity	$	309,653		$	298,135		$	262,109

Total Assets	$	3,477,659		$	3,389,125		$	2,927,345
Less: Intangible Assets		(3,105)			(3,153)			(3,296)
Tangible Assets	$	3,474,554		$	3,385,972		$	2,924,049
Tangible Common Equity/Tangible Assets		8.91	%		8.81	%		8.96	%

Tangible Book Value Per Share
Book Value Per Common Share	$	11.09		$	10.73		$	9.43
Less: Effects of Intangible Assets		(0.11)			(0.11)			(0.12)
Tangible Book Value Per Common Share	$	10.98		$	10.62		$	9.31

Return on Average Tangible Common Equity
Net Income Available to Common Shareholders	$	11,343		$	11,509		$	4,979		$	44,516		$	27,194

Average Shareholders' Equity	$	374,035		$	330,604		$	265,716		$	316,237		$	258,736
Less: Average Preferred Stock		(66,515)			(32,332)			—			(24,915)			—
Average Common Equity		307,520			298,272			265,716			291,322			258,736
Less: Effects of Average Intangible Assets		(3,132)			(3,180)			(3,323)			(3,204)			(3,395)
Average Tangible Common Equity	$	304,388		$	295,092		$	262,393		$	288,118		$	255,341
Return on Average Tangible Common Equity		14.78	%		15.47	%		7.55	%		15.45	%		10.65	%


	Three Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
	2021		2021		2021		2021		2020
Tangible Common Equity
Total Shareholders' Equity	$	379,272	$	367,803	$	290,830	$	279,171	$	265,405
Less: Preferred Stock		(66,514)		(66,515)		—		—		—
Common Shareholders' Equity		312,758		301,288		290,830		279,171		265,405
Less: Intangible Assets		(3,105)		(3,153)		(3,200)		(3,248)		(3,296)
Tangible Common Equity	$	309,653	$	298,135	$	287,630	$	275,923	$	262,109

Page 18 of 19


	As of and for the Three Months Ended						As of and for the Year Ended
	December 31, 2021		September 30, 2021		December 31, 2020		December 31, 2021		December 31, 2020
Adjusted Diluted Earnings Per Common Share
Net Income Available to Common Shareholders	$	11,343	$	11,509	$	4,979	$	44,516	$	27,194
Add: Debt Prepayment Fees		—		582		5,613		582		7,043
Less: Tax Impact		—		(151)		(1,336)		(151)		(1,676)
Net Income, Excluding Impact of Debt Prepayment Fees	$	11,343	$	11,940	$	9,256	$	44,947	$	32,561

Diluted Weighted Average Shares Outstanding		29,038,785		29,110,547		28,823,384		28,968,286		29,170,220
Adjusted Diluted Earnings Per Common Share	$	0.39	$	0.41	$	0.32	$	1.55	$	1.12

Page 19 of 19

Exhibit 99.2

2<br>Forward<br>-<br>Looking Statements<br>This presentation contains “forward<br>-<br>looking statements” within the meaning of the safe harbor provisions of the U.S. Private Sec<br>urities Litigation Reform Act of 1995. Forward<br>-<br>looking<br>statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with<br>res<br>pect to the anticipated future performance of the Company.<br>These statements are often, but not always, identified by words such as “may”, “might”, “should”, “could”, “predict”, “potent<br>ial<br>”, “believe”, “expect”, “continue”, “will”, “anticipate”,<br>“seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized”, “target” and “outlook”, or the negative version of<br>th<br>ose words or other comparable words of a future or forward<br>-<br>looking nature.<br>Forward<br>-<br>looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on ou<br>r current beliefs, expectations and assumptions regarding<br>our business, future plans and strategies, projections, anticipated events and trends, the economy and other future condition<br>s.<br>Because forward<br>-<br>looking statements relate to the future,<br>they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of whic<br>h a<br>re outside of our control. Our actual results and financial<br>condition may differ materially from those indicated in the forward<br>-<br>looking statements. Therefore, you should not rely on any of<br>these forward<br>-<br>looking statements. Important factors that<br>could cause our actual results and financial condition to differ materially from those indicated in the forward<br>-<br>looking statemen<br>ts include, among others, the following: the negative effects<br>of the ongoing COVID<br>-<br>19 pandemic, including its effects on the economic environment, our clients and our operations, including d<br>ue to supply chain disruptions, as well as any changes to<br>federal, state or local government laws, regulations or orders in connection with the pandemic; loan concentrations in our po<br>rtf<br>olio; the overall health of the local and national real estate<br>market; our ability to successfully manage credit risk; business and economic conditions generally and in the financial servi<br>ces<br>industry, nationally and within our market area, including<br>rising rates of inflation; our ability to maintain an adequate level of allowance for loan losses; new or revised accounting<br>sta<br>ndards, including as a result of the future implementation of the<br>Current Expected Credit Loss standard; the concentration of large loans to certain borrowers; the concentration of large depo<br>sit<br>s from certain clients; our ability to successfully manage<br>liquidity risk, especially in light of recent excess liquidity at the Bank; our dependence on non<br>-<br>core funding sources and our c<br>ost of funds; our ability to raise additional capital to implement<br>our business plan; our ability to implement our growth strategy and manage costs effectively; developments and uncertainty re<br>lat<br>ed to the future use and availability of some reference<br>rates, such as the London Interbank Offered Rate, as well as other alternative reference rates; the composition of our senior<br>le<br>adership team and our ability to attract and retain key<br>personnel; talent and labor shortages an high rates of employment turnover; the occurrence of fraudulent activity, breaches o<br>r f<br>ailures of our information security controls or<br>cybersecurity<br>-<br>related incidents; interruptions involving our information technology and telecommunications systems or third<br>-<br>part<br>y servicers; competition in the financial services industry,<br>including from nonbank competitors such as credit unions and “fintech” companies; the effectiveness of our risk management fr<br>ame<br>work; the commencement and outcome of litigation<br>and other legal proceedings and regulatory actions against us; the impact of recent and future legislative and regulatory cha<br>nge<br>s, including changes to federal and state corporate tax rates;<br>interest rate risk, including the effects of anticipated rate increases by the Federal Reserve; fluctuations in the values of<br>th<br>e securities held in our securities portfolio; the imposition of<br>tariffs or other governmental policies impacting the value of products produced by our commercial borrowers; severe weather,<br>nat<br>ural disasters, wide spread disease or pandemics<br>(including the COVID<br>-<br>19 pandemic), acts of war or terrorism or other adverse external events; potential impairment to the goodwi<br>ll we recorded in connection with our past acquisition;<br>changes to U.S. or state tax laws, regulations and guidance, including recent proposals to increase the federal corporate tax<br>ra<br>te; and any other risks described in the “Risk Factors” sections<br>of reports filed by the Company with the Securities and Exchange Commission.<br>Any forward<br>-<br>looking statement made by us in this press release is based only on information currently available to us and speaks<br>only as of the date on which it is made. We undertake no<br>obligation to publicly update any forward<br>-<br>looking statement, whether written or oral, that may be made from time to time, whethe<br>r as a result of new information, future developments<br>or otherwise. Certain of the information contained in this presentation is derived from information provided by industry sour<br>ces<br>.. Although we believe that such information is accurate and<br>that the sources from which it has been obtained are reliable, we cannot guarantee the accuracy of, and have not independentl<br>y v<br>erified, such information.<br>Use of Non<br>-<br>GAAP financial measures<br>In addition to the results presented in accordance with U.S. General Accepted Accounting Principles (“GAAP”), the Company rou<br>tin<br>ely supplements its evaluation with an analysis of certain<br>non<br>-<br>GAAP financial measures. The Company believes these non<br>-<br>GAAP financial measures, in addition to the related GAAP measures,<br>provide meaningful information to investors to help<br>them understand the Company’s operating performance and trends, and to facilitate comparisons with the performance of peers.<br>Th<br>ese disclosures should not be viewed as a substitute<br>for operating results determined in accordance with GAAP, nor are they necessarily comparable to non<br>-<br>GAAP performance measures t<br>hat may be presented by other companies.<br>Reconciliations of non<br>-<br>GAAP disclosures to the comparable GAAP measures are provided in this presentation.<br>Disclaimer
1<br>Includes a $0.04 negative impact related to the payment of BWB’s first preferred stock quarterly dividend in 4Q21<br>2<br>Represents a Non<br>-<br>GAAP financial measure. See Appendix for Non<br>-<br>GAAP reconciliation<br>3<br>•<br>Gross loan balances up $107.5 million, or 15.7% annualized from 3Q21 (20.2% ex. PPP)<br>•<br>Deposit balances up $92.1 million, or 12.8% annualized from 3Q21<br>•<br>Cash balances declined $46.0 million from 3Q21 as excess liquidity helped fund $359.4 million of<br>loan originations and advances<br>Diluted<br>EPS<br>Adjusted<br>Efficiency Ratio<br>2<br>Return on Avg. Tangible<br>Common Equity<br>2<br>Return on<br>Average Assets<br>•<br>Adjusted efficiency ratio<br>2<br>of 40.3%, down from 41.5% in 3Q21<br>•<br>Total revenue of $30.4 million, up 1.2% from 3Q21, driven by $480 thousand of net interest income growth<br>•<br>Core net interest margin<br>2<br>of 3.25%, up 3 basis points from 3Q21<br>•<br>Noninterest expense down $777 thousand, or 5.9% from 3Q21 (adjusted noninterest expense<br>1<br>down 1.6%)<br>•<br>Annualized net charge<br>-<br>offs to average loans of 0.00%<br>•<br>Growth<br>-<br>driven provision of $1.2 million, reducing allowance to total loans to 1.43% (ex. PPP)<br>•<br>Nonperforming assets to total assets of 0.02%, in<br>-<br>line with 3Q21<br>•<br>Tangible common equity ratio<br>2<br>of 8.91%, up 10 bps from 3Q21<br>•<br>Tangible book value per share<br>2<br>of $10.98, up 17.9% from December 31, 2020<br>•<br>Repurchased 3,320 shares of common stock ($54K) at a weighted average price of $16.36<br>Robust Balance<br>Sheet Growth<br>Continues<br>Highly Efficient<br>Operating<br>Performance<br>Superb<br>Asset Quality<br>Solid Capital<br>Position<br>4Q21 Earnings Highlights<br>PPNR Return on Average<br>Assets<br>2<br>$0.39<br>1<br>1.46%<br>2.11%<br>14.78%<br>40.3%
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PPNR ROA<br>1<br>4<br>Strong Profitability and Revenue Generation<br>Strong PPNR Trends<br>1<br>Represents a Non<br>-<br>GAAP financial measure. See Appendix for Non<br>-<br>GAAP reconciliation<br>Dollars in thousands<br>Consistent Revenue Growth<br>$24,841<br>$25,395<br>$26,288<br>$28,673<br>$29,153<br>$986<br>$1,008<br>$1,603<br>$1,410<br>$1,288<br>$25,827<br>$26,403<br>$27,891<br>$30,083<br>$30,441<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>$16,298<br>$15,598<br>$15,852<br>$17,533<br>$18,134<br>$4,979<br>$10,671<br>$10,993<br>$11,509<br>$12,514<br>2.30%<br>2.15%<br>2.07%<br>2.09%<br>2.11%<br>0.70%<br>1.47%<br>1.43%<br>1.37%<br>1.46%<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>Net Income<br>PPNR<br>1<br>ROA<br>Noninterest Income<br>Net Interest Income
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$21,230<br>$22,869<br>$23,498<br>$25,433<br>$26,634<br>$2,097<br>$1,864<br>$1,767<br>$1,753<br>$1,057<br>$1,514<br>$1,202<br>$1,023<br>$1,487<br>$1,462<br>$24,841<br>$25,935<br>$26,288<br>$28,673<br>$29,153<br>3.61%<br>3.60%<br>3.52%<br>3.54%<br>3.51%<br>3.29%<br>3.34%<br>3.31%<br>3.22%<br>3.25%<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>Core Net Interest Margin<br>1,2<br>Net Interest Margin<br>1<br>5<br>1<br>Amounts calculated on a tax<br>-<br>equivalent basis using statutory federal tax rate of 21%<br>2<br>Excludes loan fees and PPP loan balances, interest and fees; represents a Non<br>-<br>GAAP financial measure, see Appendix for Non<br>-<br>GAAP<br>reconciliation<br>Dollars in thousands<br>•<br>17.4% YoY growth in net interest income<br>•<br>25.5% YoY growth in net interest income<br>(excluding loan fees and PPP loans)<br>•<br>Average earning asset growth of 10.6%<br>annualized from 3Q21 impacted by majority<br>of loan growth occurring later in 4Q21<br>•<br>Estimated $0.9 million of PPP fees yet to be<br>recognized<br>Net Interest Income Momentum Continues<br>With Robust Loan Growth and Stabilizing NIM<br>Net Interest Income (ex. interest income on<br>loan fees and PPP loans)<br>Net Interest Margin Drivers<br>Interest Income and fees on PPP loans<br>Loan fees<br>Net Interest Income and Net Interest Margin<br>3 bp increase in core NIM<br>2<br>as a<br>portion of excess cash from 3Q21 was<br>redeployed into earning assets
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$2,301<br>$2,390<br>$2,534<br>$2,655<br>$2,756<br>4.89%<br>4.74%<br>4.56%<br>4.65%<br>4.49%<br>4.59%<br>4.50%<br>4.37%<br>4.28%<br>4.20%<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>$1,687<br>$1,836<br>$1,898<br>$2,039<br>$2,008<br>0.96%<br>0.81%<br>0.74%<br>0.66%<br>0.64%<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>Loan Yield (ex. Loan Fees and PPP)<br>2<br>6<br>1<br>Excludes loan fees and PPP<br>2<br>Represents a Non<br>-<br>GAAP financial measure. See Appendix for Non<br>-<br>GAAP reconciliation<br>Dollars in millions<br>Spot<br>Rate<br>2.55<br>%<br>Spot<br>Rate<br>4.10%<br>1<br>Spot<br>Rate<br>0.53%<br>Spot<br>Rate<br>0.52<br>%<br>Steady Investment in Securities Portfolio<br>Market<br>-<br>Related Loan Yield Pressure as Balances Grow<br>Improving Deposit Mix Resulting in Lower Deposit Costs<br>Lower Overall Funding Costs<br>Net Interest Income Components<br>$371<br>$383<br>$391<br>$386<br>$413<br>2.70%<br>2.76%<br>2.55%<br>2.56%<br>2.57%<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>$1,688<br>$1,836<br>$1,898<br>$2,039<br>$2,008<br>$654<br>$676<br>$732<br>$784<br>$861<br>$188<br>$138<br>$141<br>$145<br>$136<br>$2,530<br>$2,650<br>$2,771<br>$2,968<br>$3,005<br>0.92%<br>0.77%<br>0.70%<br>0.65%<br>0.61%<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>Average Interest<br>-<br>Bearing Deposits<br>Average Noninterest<br>-<br>Bearing Deposits<br>Average Borrowings<br>Cost of Liability Funding<br>Average Investments<br>Investment Yield<br>Average Loans<br>Loan Yield<br>Average Interest<br>-<br>Bearing Deposits<br>Cost of Interest<br>-<br>Bearing Deposits
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$6,216<br>$7,102<br>$7,512<br>$8,309<br>$7,966<br>$979<br>$1,055<br>$980<br>$942<br>$939<br>$690<br>$753<br>$849<br>$923<br>$860<br>$1,760<br>$2,013<br>$2,136<br>$2,480<br>$2,694<br>$5,613<br>$582<br>$15,258<br>$10,923<br>$11,477<br>$13,236<br>$12,459<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1.34%<br>1.49%<br>1.48%<br>1.49%<br>1.43%<br>0.82%<br>0.02%<br>0.02%<br>0.09%<br>0.02%<br>2.16%<br>1.51%<br>1.50%<br>1.58%<br>1.45%<br>59.0%<br>41.2%<br>42.0%<br>43.9%<br>40.8%<br>36.6%<br>40.7%<br>41.5%<br>41.5%<br>40.3%<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>Adjusted NIE / Avg. Assets<br>2<br>Adjusted Efficiency Ratio<br>2<br>Adjustment Factors / Avg. Assets<br>2<br>Efficiency Ratio<br>2<br>7<br>Adjusted Efficiency Ratio Consistently in the Low 40% Range<br>Continued Investments to Support Balance Sheet Growth<br>1<br>3Q21 median efficiency ratio for publicly<br>-<br>traded banks with total assets between $2 billion and $10 billion (Source: S&P Capital<br>IQ)<br>2<br>Represents a Non<br>-<br>GAAP financial measure. See Appendix for Non<br>-<br>GAAP reconciliation<br>3<br>Includes FHLB advance prepayment fees in 4Q20 and debt extinguishment costs related to accelerated sub debt redemption in 3Q2<br>1<br>Dollars in thousands<br>Efficiency Ratio Among Lowest in Industry<br>Industry median efficiency ratio of 57%<br>1<br>Decline in 4Q21 personnel expense due to<br>higher bonus accrual in 3Q21<br>Occupancy<br>Personnel<br>Other<br>Technology<br>Non<br>-<br>Core Items<br>3<br>Noninterest expense growth expected to be<br>in<br>-<br>line with asset growth in 2022
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Dollars in millions<br>8<br>•<br>27.7% YoY loan growth, excluding<br>PPP loans<br>•<br>4Q21 gross loans grew $135.5<br>million, or 20.2% annualized,<br>excluding PPP loans<br>•<br>Expect annualized loan growth<br>(ex. PPP) in the mid<br>-<br>to high<br>-<br>teen<br>percent range in 2022<br>•<br>M&A<br>-<br>related market disruption resulting in<br>client and banker acquisition opportunities<br>•<br>Strong brand and service model in the Twin<br>Cities market<br>•<br>Operating in the Twin Cities “sweet spot”<br>–<br>financing larger deals than community<br>banks, but under the radar of larger banks<br>•<br>PPP<br>-<br>related client acquisition opportunities<br>•<br>Expansion of talented lending teams<br>Robust Loan Growth Continues<br>$2,188<br>$2,263<br>$2,495<br>$2,658<br>$2,793<br>$138<br>$163<br>$99<br>$54<br>$26<br>$2,326<br>$2,426<br>$2,594<br>$2,712<br>$2,819<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>BWB Loan Growth Catalysts<br>PPP Loans<br>Gross Loans (ex. PPP)
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9<br>Dollars in millions<br>•<br>Despite payoffs and paydowns of $224 million and a net PPP balance reduction of<br>$<br>28<br>million in 4Q21, gross loan portfolio grew $<br>107<br>million from 3Q21<br>•<br>Loan pipeline remains strong and diversified among various asset classes<br>A Proven Loan Growth Engine<br>Up 10%<br>compared to 3Q21<br>Up 37%<br>compared to 3Q21<br>Decrease<br>Increase<br>Total
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CRE NOO<br>29.0%<br>Multifamily<br>32.3%<br>C&D<br>10.0%<br>1<br>-<br>4 Family<br>10.8%<br>CRE OO<br>4.0%<br>C&I<br>12.8%<br>PPP<br>0.9%<br>Consumer &<br>Other<br>0.2%<br>10<br>Dollars in millions<br>Loan Portfolio Composition<br>Loan Mix<br>by Type<br>$2.8<br>Billion<br>4Q21 Loan Growth by Type (vs. 3Q21)<br>Well<br>-<br>Diversified Loan Portfolio<br>•<br>4Q21 loan growth across all commercial portfolios, led by multifamily<br>•<br>Multifamily continues to be a key growth portfolio due to segment expertise and lower risk<br>characteristics<br>•<br>62%<br>fixed rate,<br>21%<br>variable rate, and<br>17%<br>adjustable rate<br>•<br>Loan modifications of $35.0 million at December 31, 2021, or 1.3% of gross loans (ex. PPP)<br>$(28)<br>$(0)<br>$9<br>$10<br>$15<br>$24<br>$32<br>$45<br>Multifamily<br>C&I<br>CRE Nonowner Occupied<br>CRE Owner Occupied<br>1<br>-<br>4 Family<br>Construction & Development<br>Consumer & Other<br>PPP
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$672<br>$713<br>$758<br>$846<br>$875<br>$366<br>$433<br>$432<br>$489<br>$545<br>$658<br>$792<br>$761<br>$792<br>$864<br>$354<br>$345<br>$322<br>$310<br>$293<br>$452<br>$356<br>$447<br>$417<br>$369<br>$2,502<br>$2,639<br>$2,721<br>$2,854<br>$2,946<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>11<br>•<br>30.2% YoY growth in noninterest<br>-<br>bearing deposits<br>•<br>Robust deposit inflows reflect both<br>successful new client and banker<br>acquisition initiatives and pandemic<br>-<br>related accumulation of liquidity by<br>existing clients<br>•<br>Core deposits<br>1<br>were 85% of total<br>deposits (up from 78% at 4Q20)<br>•<br>Cost of total deposits of 0.45%, down<br>from 0.48% in 3Q21<br>•<br>$123 million in time deposits<br>maturing over the next five quarters at<br>a blended cost of 1.37%<br>•<br>Expect deposit growth to continue to<br>fund loan growth going forward<br>1<br>Total deposits less brokered deposits and certificates of deposit greater than $250,000<br>Dollars in millions<br>Interest<br>-<br>Bearing Transaction<br>Noninterest<br>-<br>Bearing Transaction<br>Time<br>Savings & Money Market<br>Brokered<br>Strong Deposit Growth to Support<br>Loan Originations
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$15,164<br>$6,739<br>$7,195<br>$7,742<br>$22,641<br>4.54%<br>1.94%<br>1.99%<br>1.93%<br>5.45%<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>$440<br>$(46)<br>$(4)<br>$(10)<br>$31<br>0.08%<br>(0.01)%<br>0.00%<br>0.00%<br>0.00%<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>$775<br>$770<br>$761<br>$734<br>$722<br>0.03%<br>0.03%<br>0.02%<br>0.02%<br>0.02%<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>$34,841<br>$35,987<br>$37,591<br>$38,901<br>$40,020<br>1.59%<br>1.59%<br>1.50%<br>1.46%<br>1.43%<br>1.50%<br>1.48%<br>1.45%<br>1.43%<br>1.42%<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>12<br>Asset Quality<br>Classified Assets<br>Nonperforming Assets<br>1<br>Allowance for Loan Losses<br>Net Charge<br>-<br>Offs<br>Superb Asset Quality Despite COVID Impact<br>4Q21 increase primarily due to pandemic<br>-<br>related<br>migration of two relationships from Watch to Classified<br>Consistently low NPA levels<br>Current reserves at appropriate levels<br>Cumulative NCOs of $663K since 2017<br>¹<br>Nonaccrual loans, loans 90 days past due and foreclosed assets<br>Dollars in thousands<br>Classified Assets<br>% of Bank Tier 1 Capital + ALLL<br>NPAs<br>% of Assets<br>ALLL<br>% of Gross Loans<br>% of Gross Loans (ex. PPP)<br>Net Charge<br>-<br>offs<br>% of Average Loans (annualized)
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C&I<br>,<br>17.7%<br>CRE NOO<br>Hotels<br>,<br>31.8%<br>CRE NOO<br>-<br>Senior<br>Housing<br>,<br>21.5%<br>CRE NOO<br>Retail<br>,<br>18.2%<br>CRE NOO<br>Other<br>,<br>9.4%<br>1<br>-<br>4<br>Family<br>,<br>1.4%<br>C&I<br>64.1%<br>CRE NOO<br>Retail<br>15.8%<br>CRE NOO<br>Office<br>2.7%<br>CRE OO<br>10.7%<br>C&D<br>0.6%<br>1<br>-<br>4<br>Family<br>6.1%<br>$23<br>Million<br>13<br>Investor Real Estate Secured: CRE Nonowner Occupied (“NOO”)<br>Watch List<br>By Loan<br>Type<br>Classified<br>List By<br>Loan Type<br>$49<br>Million<br>Dollars in thousands<br>Watch List Characteristics<br>Loan Balance Outstanding<br>$49,330<br>% of Total Loans, Gross<br>1.7%<br>Number of Loans<br>21<br>Average Loan Size<br>$2,349<br>Classified List Characteristics<br>Loan Balance Outstanding<br>$22,641<br>% of Total Loans, Gross<br>0.8%<br>Number of Loans<br>28<br>Average Loan Size<br>$809<br>% of Bank Tier 1 Capital + ALLL<br>5.45%<br>Watch and Classified Assets<br>Remain Primarily Pandemic<br>-<br>Related<br>2 C&I relationships migrated from Watch to Classified in 4Q21<br>Only 4 hotel relationships as of December 31, 2021; with 2 on Watch
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18.4<br>19.2%<br>15.4%<br>17.5%<br>16.4%<br>19.8<br>22.3%<br>25.9%<br>24.4%<br>26.2%<br>$1,121<br>$1,273<br>$1,305<br>$1,418<br>$1,480<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>9.28%<br>9.11%<br>9.08%<br>10.70%<br>10.82%<br>10.35%<br>10.34%<br>9.67%<br>9.47%<br>9.36%<br>14.58%<br>14.46%<br>13.49%<br>15.93%<br>15.55%<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>14<br>Dollars in millions<br>On & Off<br>-<br>Balance Sheet Liquidity as % of Total Assets<br>Solid Capital and Liquidity Position<br>•<br>Repurchased 3,320 shares of common stock ($54K) at a weighted average price of $16.36<br>•<br>$12.4M remaining under the current share repurchase program<br>Focus on utilizing capital to support strong loan growth<br>Investment portfolio completely unencumbered<br>at December 31, 2021<br>Off<br>-<br>Balance Sheet Liquidity as a % of Assets<br>On<br>-<br>Balance Sheet Liquidity as a % of Assets<br>Total Risk<br>-<br>Based Capital Ratio<br>Common Equity Tier 1 Capital Ratio<br>Tier 1 Leverage Ratio<br>4Q21 Capital Actions<br>Consolidated Capital Ratios
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$262<br>$276<br>$288<br>$298<br>$310<br>8.96%<br>8.99%<br>9.10%<br>8.81%<br>8.91%<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>Tangible Common Equity to Tangible Assets<br>1<br>$4.53<br>$5.40<br>$7.22<br>$8.33<br>$9.31<br>$10.98<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>15<br>Strong Capital and Liquidity<br>Tangible Book Value Per Share<br>1<br>up 17.9% in 2021<br>Tangible Common Equity<br>1<br>Represents a Non<br>-<br>GAAP financial measure. See Appendix for Non<br>-<br>GAAP reconciliation<br>Dollars in millions, except per share data<br>Consistently Growing Tangible Book Value<br>Tangible Common Equity<br>1
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2022 Strategic Priorities<br>–<br>Building on Our Momentum<br>Continue Balance Sheet<br>Growth Trajectory<br>1<br>2<br>3<br>4<br>16<br>Invest in Business Scalability<br>to Support Growth<br>Maintain Highly Efficient<br>Operating Model<br>Develop, Retain and Recruit<br>Top Industry Talent<br>•<br>Generate mid<br>-<br>to high<br>-<br>teens loan growth, excluding PPP loans<br>•<br>Twin Cities organic growth opportunities will support growth to $5<br>billion in assets in the Twin Cities over the next few years<br>•<br>Continue M&A discussions with potential partners<br>•<br>Make proactive investments<br>before<br>we need them<br>•<br>Includes areas such as technology and automation, risk management<br>and project management<br>•<br>Launching industry<br>-<br>leading commercial loan origination system in<br>early 2022<br>•<br>Leverage strong spread<br>-<br>based revenue generation to drive continued<br>revenue growth<br>•<br>Evaluate potential opportunities to enhance revenue diversification<br>•<br>Maintain expense growth in<br>-<br>line with asset growth<br>•<br>Attract top talent in key growth areas such as lending, credit, treasury<br>management, risk and IT<br>•<br>Develop existing talent through management development programs to<br>enhance skills and promote growth within the company<br>•<br>Meet the evolving needs of our team members<br>–<br>modern amenities in<br>our new corporate center, collaboration, flexibility, ESG focus
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Existing Client<br>57.7%<br>New Client<br>42.3%<br>18<br>New vs.<br>Existing<br>Client<br>PPP Origination Summary as of 12/31/2021<br>Number of<br>Loans<br>Principal<br>Balance<br>Origination<br>Fees<br>Round 1<br>1,200<br>$ 181,600<br>$ 5,706<br>Round 2<br>651<br>78,386<br>3,544<br>Total<br>1,851<br>$ 259,986<br>$ 9,250<br>Dollars in thousands<br>PPP Outstanding Summary<br>As of and for the Three Months Ended 12/31/2021<br>Program Lifetime<br># of Loans<br>Principal<br>Balance<br>Net Fees Earned<br>Unrecognized<br>Fees<br>Net Fees<br>Generated<br>Net Fees Earned<br>Round 1<br>17<br>$ 1,109<br>$ 74<br>$ 8<br>$ 5,706<br>$ 5,698<br>Round 2<br>136<br>25,053<br>885<br>890<br>3,544<br>2,654<br>Total<br>153<br>$ 26,162<br>$ 959<br>$ 898<br>$ 9,250<br>$ 8,352<br>PPP Loans
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19<br>Dollars in thousands<br>Loan Portfolio<br>–<br>Repricing Composition<br>Variable/Adjustable Loans vs. Rate Floors<br>Fixed/Adjustable Years to Maturity/Repricing<br>Loan Portfolio Repricing<br>Fixed<br>,<br>61.9%<br>Variable<br>,<br>20.6%<br>Adjustable<br>,<br>17.5%<br>80%<br>73%<br>75%<br>78%<br>71%<br>84%<br>20%<br>27%<br>25%<br>22%<br>29%<br>16%<br>$281,198<br>$295,624<br>$272,783<br>$274,265<br>$403,659<br>$712,126<br>Less Than<br>1 Year<br>1 to 2 Years<br>2 to 3 Years<br>3 to 4 Years<br>4 to 5 Years<br>5+ Years<br>Adjustable<br>Fixed<br>Index Rate<br>At Floor<br>0 to -25 bps<br>-26 to -50 bps<br>-51 to -75 bps<br>-76 to -100 bps<br>> -100 bps<br>Total<br>PRIME<br>311,938<br>$<br><br>24,536<br>$<br><br>10,242<br>$<br><br>-<br>$<br><br>115<br>$<br><br>-<br>$<br><br>346,833<br>$<br><br>Libor<br>139,008<br>$<br><br>-<br>$<br><br>-<br>$<br><br>-<br>$<br><br>18,444<br>$<br><br>-<br>$<br><br>157,452<br>$<br><br>SOFR<br>4,860<br>$<br><br>-<br>$<br><br>-<br>$<br><br>-<br>$<br><br>-<br>$<br><br>-<br>$<br><br>4,860<br>$<br><br>2 Yr FHLB<br>9,629<br>$<br><br>-<br>$<br><br>-<br>$<br><br>-<br>$<br><br>-<br>$<br><br>-<br>$<br><br>9,629<br>$<br><br>3 Yr FHLB<br>96,875<br>$<br><br>-<br>$<br><br>-<br>$<br><br>-<br>$<br><br>-<br>$<br><br>-<br>$<br><br>96,875<br>$<br><br>5 Yr FHLB<br>90,150<br>$<br><br>-<br>$<br><br>-<br>$<br><br>-<br>$<br><br>-<br>$<br><br>-<br>$<br><br>90,150<br>$<br><br>90 Day T-Bill<br>10,000<br>$<br><br>-<br>$<br><br>-<br>$<br><br>-<br>$<br><br>-<br>$<br><br>-<br>$<br><br>10,000<br>$<br><br>1 Yr CMT<br>3,722<br>$<br><br>-<br>$<br><br>-<br>$<br><br>-<br>$<br><br>-<br>$<br><br>-<br>$<br><br>3,722<br>$<br><br>2 Yr CMT<br>112<br>$<br><br>-<br>$<br><br>8,422<br>$<br><br>-<br>$<br><br>-<br>$<br><br>-<br>$<br><br>8,534<br>$<br><br>3 Yr CMT<br>79,534<br>$<br><br>3,603<br>$<br><br>2,343<br>$<br><br>762<br>$<br><br>8,784<br>$<br><br>10,800<br>$<br><br>105,825<br>$<br><br>5 Yr CMT<br>131,246<br>$<br><br>1,172<br>$<br><br>6,624<br>$<br><br>11<br>$<br><br>193<br>$<br><br>11,003<br>$<br><br>150,249<br>$<br><br>Total<br>877,074<br>$<br><br>29,311<br>$<br><br>27,631<br>$<br><br>773<br>$<br><br>27,537<br>$<br><br>21,803<br>$<br><br>984,128<br>$
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20<br>This presentation includes certain non<br>-<br>GAAP financial measures intended to supplement, not substitute for, comparable GAAP measu<br>res. Reconciliations of these<br>non<br>-<br>GAAP financial measures are provided below. The Company believes these non<br>-<br>GAAP financial measures provide useful informatio<br>n to both management and<br>investors to analyze and evaluate the Company’s financial performance. Because not all companies use the same calculations fo<br>r t<br>hese measures, the information<br>in this presentation may not be comparable to other similarly titled measures as calculated by other companies.<br>Dollars in thousands<br>Reconciliation of Non<br>-<br>GAAP Financial<br>Measures<br>-<br>Annual<br>Tangible Common Equity &<br>Tangible Common Equity/Tangible<br>Assets<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>Common Equity<br>115,366<br>$<br><br>137,162<br>$<br><br>220,998<br>$<br><br>244,794<br>$<br><br>265,405<br>$<br><br>379,272<br>$<br><br>Less: Preferred Stock<br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>(66,514)<br><br><br>Less: Intangible Assets<br>(4,060)<br><br><br>(3,869)<br><br><br>(3,678)<br><br><br>(3,487)<br><br><br>(3,296)<br><br><br>(3,105)<br><br><br>Tangible Common Equity<br>111,306<br>$<br><br>133,293<br>$<br><br>217,320<br>$<br><br>241,307<br>$<br><br>262,109<br>$<br><br>309,653<br>$<br><br>Total Assets<br>1,260,394<br>$<br><br>1,616,612<br>$<br><br>1,973,741<br>$<br><br>2,268,830<br>$<br><br>2,927,345<br>$<br><br>3,477,659<br>$<br><br>Less: Intangible Assets<br>(4,060)<br><br><br>(3,869)<br><br><br>(3,678)<br><br><br>(3,487)<br><br><br>(3,296)<br><br><br>(3,105)<br><br><br>Tangible Assets<br>1,256,334<br>$<br><br>1,612,743<br>$<br><br>1,970,063<br>$<br><br>2,265,343<br>$<br><br>2,924,049<br>$<br><br>3,474,554<br>$<br><br>Tangible Common Equity/Tangible Assets<br>8.86%<br>8.26%<br>11.03%<br>10.65%<br>8.96%<br>8.91%<br>Tangible Book Value Per Share<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>Book Value Per Common Share<br>4.69<br>$<br><br>5.56<br>$<br><br>7.34<br>$<br><br>8.45<br>$<br><br>9.43<br>$<br><br>11.09<br>$<br><br>Less: Effects of Intangible Assets<br>(0.17)<br><br><br>(0.16)<br><br><br>(0.12)<br><br><br>(0.12)<br><br><br>(0.12)<br><br><br>(0.11)<br><br><br>Tangible Book Value Per Common Share<br>4.53<br>$<br><br>5.40<br>$<br><br>7.22<br>$<br><br>8.33<br>$<br><br>9.31<br>$<br><br>10.98<br>$<br><br>Total Common Shares<br>24,589,861<br><br><br>24,679,861<br><br><br>30,097,274<br><br><br>28,973,572<br><br><br>28,143,493<br><br><br>28,206,566<br><br><br>As of and for the year ended December 31,
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21<br>This presentation includes certain non<br>-<br>GAAP financial measures intended to supplement, not substitute for, comparable GAAP measu<br>res. Reconciliations of these<br>non<br>-<br>GAAP financial measures are provided below. The Company believes these non<br>-<br>GAAP financial measures provide useful informatio<br>n to both management and<br>investors to analyze and evaluate the Company’s financial performance. Because not all companies use the same calculations fo<br>r t<br>hese measures, the information<br>in this presentation may not be comparable to other similarly titled measures as calculated by other companies.<br>* Efficiency Ratio is adjusted to exclude the historic tax credit amortization, FHLB prepayment fees and debt prepayment fees<br>..<br>Dollars in thousands<br>Reconciliation of Non<br>-<br>GAAP Financial<br>Measures<br>–<br>Profitability, TCE and TBV<br>Efficiency Ratio<br>December 31,<br>2020<br>December 31,<br>2020<br>March 31,<br>2021<br>March 31,<br>2021<br>June 30,<br>2021<br>June 30,<br>2021<br>September 30,<br>2021<br>September 30,<br>2021<br>December 31,<br>2021<br>December 31,<br>2021*<br>Noninterest Expense<br>15,258<br>$<br><br>15,258<br>$<br><br>10,923<br>$<br><br>10,923<br>$<br><br>11,477<br>$<br><br>11,477<br>$<br><br>13,236<br>$<br><br>13,236<br>$<br><br>12,459<br>$<br><br>12,459<br>$<br><br>Less: Amortization of Tax Credit Investments<br>-<br><br><br>(146)<br><br><br>-<br><br><br>(118)<br><br><br>-<br><br><br>(140)<br><br><br>-<br><br><br>(152)<br><br><br>-<br><br><br>(152)<br><br><br>Less: FHLB Advances Prepayment Fee<br>-<br><br><br>(5,613)<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>Less: Debt Prepayment Fees<br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>(582)<br><br><br>-<br><br><br>-<br><br><br>Less: Amortization Intangible Assets<br>(48)<br><br><br>(48)<br><br><br>(48)<br><br><br>(48)<br><br><br>(47)<br><br><br>(47)<br><br><br>(48)<br><br><br>(48)<br><br><br>(48)<br><br><br>(48)<br><br><br>Adjusted Noninterest Expense<br>15,210<br>$<br><br>9,451<br>$<br><br>10,875<br>$<br><br>10,757<br>$<br><br>11,430<br>$<br><br>11,290<br>$<br><br>13,188<br>$<br><br>12,454<br>$<br><br>12,411<br>$<br><br>12,259<br>$<br><br>Net Interest Income<br>24,841<br>$<br><br>24,841<br>$<br><br>25,395<br>$<br><br>25,395<br>$<br><br>26,288<br>$<br><br>26,288<br>$<br><br>28,673<br>$<br><br>28,673<br>$<br><br>29,153<br>$<br><br>29,153<br>$<br><br>Noninterest Income<br>986<br><br><br>986<br><br><br>1,008<br><br><br>1,008<br><br><br>1,603<br><br><br>1,603<br><br><br>1,410<br><br><br>1,410<br><br><br>1,288<br><br><br>1,288<br><br><br>Less: Gain on Sales of Securities<br>(30)<br><br><br>(30)<br><br><br>-<br><br><br>-<br><br><br>(702)<br><br><br>(702)<br><br><br>(48)<br><br><br>(48)<br><br><br>-<br><br><br>-<br><br><br>Adjusted Operating Revenue<br>25,797<br>$<br><br>25,797<br>$<br><br>26,403<br>$<br><br>26,403<br>$<br><br>27,189<br>$<br><br>27,189<br>$<br><br>30,035<br>$<br><br>30,035<br>$<br><br>30,441<br>$<br><br>30,441<br>$<br><br>Efficiency Ratio<br>59.0%<br>36.6%<br>41.2%<br>40.7%<br>42.0%<br>41.5%<br>43.9%<br>41.5%<br>40.8%<br>40.3%<br>Tangible Common Equity &<br>Tangible Common Equity/Tangible Assets<br>December 31,<br>2020<br>March 31,<br>2021<br>June 30,<br>2021<br>September 30,<br>2021<br>December 31,<br>2021<br>Total Shareholders' Equity<br>265,405<br>$<br><br>279,171<br>$<br><br>290,830<br>$<br><br>367,803<br>$<br><br>379,272<br>$<br><br>Net Income Available to Common Shareholders<br>Less: Preferred Stock<br>-<br><br><br>-<br><br><br>-<br><br><br>(66,515)<br><br><br>(66,514)<br><br><br>Total Common Shareholders' Equity<br>265,405<br><br><br>279,171<br><br><br>290,830<br><br><br>301,288<br><br><br>312,758<br><br><br>Average Total Shareholders' Equity<br>Less: Intangible Assets<br>(3,296)<br><br><br>(3,248)<br><br><br>(3,200)<br><br><br>(3,153)<br><br><br>(3,105)<br><br><br>Less: Average Preferred Stock<br>Tangible Common Equity<br>262,109<br>$<br><br>275,923<br>$<br><br>287,630<br>$<br><br>298,135<br>$<br><br>309,653<br>$<br><br>Average Total Common Shareholders' Equity<br>Less: Effects of Average Intangible Assets<br>Total Assets<br>2,927,345<br>$<br><br>3,072,359<br>$<br><br>3,162,612<br>$<br><br>3,389,125<br>$<br><br>3,477,659<br>$<br><br>Average Tangible Common Equity<br>Less: Intangible Assets<br>(3,296)<br><br><br>(3,248)<br><br><br>(3,200)<br><br><br>(3,153)<br><br><br>(3,105)<br><br><br>Tangible Assets<br>2,924,049<br>$<br><br>3,069,111<br>$<br><br>3,159,412<br>$<br><br>3,385,972<br>$<br><br>3,474,554<br>$<br><br>Annualized Return on Average Tangible Common Equity<br>Tangible Common Equity/Tangible Assets<br>8.96%<br>8.99%<br>9.10%<br>8.81%<br>8.91%<br>Tangible Book Value Per Share<br>December 31,<br>2020<br>March 31,<br>2021<br>June 30,<br>2021<br>September 30,<br>2021<br>December 31,<br>2021<br>Book Value Per Common Share<br>9.43<br>$<br><br>9.92<br>$<br><br>10.33<br>$<br><br>10.73<br>$<br><br>11.09<br>$<br><br>Less: Effects of Intangible Assets<br>(0.12)<br><br><br>(0.12)<br><br><br>(0.11)<br><br><br>(0.11)<br><br><br>(0.11)<br><br><br>Tangible Book Value Per Common Share<br>9.31<br>$<br><br>9.80<br>$<br><br>10.22<br>$<br><br>10.62<br>$<br><br>10.98<br>$<br><br>Total Common Shares<br>28,143,493<br><br><br>28,132,929<br><br><br>28,162,777<br><br><br>28,066,822<br><br><br>28,206,566<br><br><br>11,343<br>$<br><br>374,035<br>$<br><br>307,520<br>$<br><br>(66,515)<br><br><br>(3,132)<br><br><br>14.78%<br>304,388<br>$<br><br>As of and for the quarter ended,<br>As of and for the quarter ended,<br>As of and for the quarter ended<br>December 31, 2021<br>ROATCE
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22<br>This presentation includes certain non<br>-<br>GAAP financial measures intended to supplement, not substitute for, comparable GAAP measu<br>res. Reconciliations of these<br>non<br>-<br>GAAP financial measures are provided below. The Company believes these non<br>-<br>GAAP financial measures provide useful informatio<br>n to both management and<br>investors to analyze and evaluate the Company’s financial performance. Because not all companies use the same calculations fo<br>r t<br>hese measures, the information<br>in this presentation may not be comparable to other similarly titled measures as calculated by other companies.<br>Dollars in thousands<br>Reconciliation of Non<br>-<br>GAAP Financial<br>Measures<br>–<br>PPNR<br>Pre-Provision Net Revenue<br>December 31,<br>2020<br>March 31,<br>2021<br>June 30,<br>2021<br>September 30,<br>2021<br>December 31,<br>2021<br>Noninterest Income<br>986<br>$<br><br>1,008<br>$<br><br>1,603<br>$<br><br>1,410<br>$<br><br>1,288<br>$<br><br>Less: Gain on sales on Securities<br>(30)<br><br><br>-<br><br><br>(702)<br><br><br>(48)<br><br><br>-<br><br><br>Total Operating Noninterest Income<br>956<br><br><br>1,008<br><br><br>901<br><br><br>1,362<br><br><br>1,288<br><br><br>Plus: Net Interest Income<br>24,841<br><br><br>25,395<br><br><br>26,288<br><br><br>28,673<br><br><br>29,153<br><br><br> Net Operating Revenue<br>25,797<br><br><br>26,403<br><br><br>27,189<br><br><br>30,035<br><br><br>30,441<br><br><br>Noninterest Expense<br>15,258<br>$<br><br>10,923<br>$<br><br>11,477<br>$<br><br>13,236<br>$<br><br>12,459<br>$<br><br>Less: Amortization of Tax Credit Investments<br>(146)<br><br><br>(118)<br><br><br>(140)<br><br><br>(152)<br><br><br>(152)<br><br><br>Less: FHLB Advances Prepayment Fees<br>(5,613)<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>Less: Debt Prepayment Fee<br>-<br><br><br>-<br><br><br>-<br><br><br>(582)<br><br><br>-<br><br><br> Total Operating Noninterest Expense<br>9,499<br><br><br>10,805<br><br><br>11,337<br><br><br>12,502<br><br><br>12,307<br><br><br>Pre-Provision Net Revenue<br>16,298<br>$<br><br>15,598<br>$<br><br>15,852<br>$<br><br>17,533<br>$<br><br>18,134<br>$<br><br> Plus:<br>Non-Operating Revenue Adjustments<br>30<br><br><br>-<br><br><br>702<br><br><br>48<br><br><br>-<br><br><br> Less:<br>Provision for Loan Losses<br>3,900<br><br><br>1,100<br><br><br>1,600<br><br><br>1,300<br><br><br>1,150<br><br><br>Non-Operating Expense Adjustments<br>5,759<br><br><br>118<br><br><br>140<br><br><br>734<br><br><br>152<br><br><br>Provision for Income Taxes<br>1,690<br><br><br>3,709<br><br><br>3,821<br><br><br>4,038<br><br><br>4,318<br><br><br>Net Income<br>4,979<br>$<br><br>10,671<br>$<br><br>10,993<br>$<br><br>11,509<br>$<br><br>12,514<br>$<br><br>Average Assets<br>2,816,032<br>$<br><br>2,940,262<br>$<br><br>3,076,712<br>$<br><br>3,332,301<br>$<br><br>3,403,270<br>$<br><br>Pre-Provision Net Revenue Return on Average Assets<br>2.30%<br>2.15%<br>2.07%<br>2.09%<br>2.11%<br>As of and for the quarter ended,
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23<br>This presentation includes certain non<br>-<br>GAAP financial measures intended to supplement, not substitute for, comparable GAAP measu<br>res. Reconciliations of these<br>non<br>-<br>GAAP financial measures are provided below. The Company believes these non<br>-<br>GAAP financial measures provide useful informatio<br>n to both management and<br>investors to analyze and evaluate the Company’s financial performance. Because not all companies use the same calculations fo<br>r t<br>hese measures, the information<br>in this presentation may not be comparable to other similarly titled measures as calculated by other companies.<br>Dollars in thousands<br>Reconciliation of Quarterly Non<br>-<br>GAAP<br>Financial Measures<br>–<br>Core NIM<br>Core Net Interest Margin<br>December 31,<br>2020<br>March 31,<br>2021<br>June 30,<br>2021<br>September 30,<br>2021<br>December 31,<br>2021<br>Net Interest Income (Tax-Equivalent Basis)<br>25,051<br>$<br><br>25,609<br>$<br><br>26,495<br>$<br><br>28,880<br>$<br><br>29,388<br>$<br><br>Less: Loan Fees<br>(1,514)<br><br><br>(1,202)<br><br><br>(1,023)<br><br><br>(1,487)<br><br><br>(1,462)<br><br><br>Less: PPP Interest and Fees<br>(2,097)<br><br><br>(1,864)<br><br><br>(1,767)<br><br><br>(1,753)<br><br><br>(1,057)<br><br><br> Core Net Interest Margin<br>21,440<br>$<br><br>22,543<br>$<br><br>23,705<br>$<br><br>25,640<br>$<br><br>26,869<br>$<br><br>Average Interest Earning Assets<br>2,759,543<br>$<br><br>2,883,084<br>$<br><br>3,019,437<br>$<br><br>3,234,301<br>$<br><br>3,320,603<br>$<br><br>Less: Avergage PPP Loans<br>(165,099)<br><br><br>(148,881)<br><br><br>(149,312)<br><br><br>(76,006)<br><br><br>(39,900)<br><br><br> Core Average Interest Earning Assets<br>2,594,444<br>$<br><br>2,734,203<br>$<br><br>2,870,125<br>$<br><br>3,158,295<br>$<br><br>3,280,703<br>$<br><br>Core Net Interest Margin<br>3.29%<br>3.34%<br>3.31%<br>3.22%<br>3.25%<br>Loan Interest Income (Tax-Equivalent Basis)<br>28,265<br>$<br><br>27,938<br>$<br><br>28,778<br>$<br><br>31,101<br>$<br><br>31,211<br>$<br><br>Less: Loan Fees<br>(1,514)<br><br><br>(1,202)<br><br><br>(1,023)<br><br><br>(1,487)<br><br><br>(1,462)<br><br><br>Less: PPP Interest and Fees<br>(2,097)<br><br><br>(1,864)<br><br><br>(1,767)<br><br><br>(1,753)<br><br><br>(1,057)<br><br><br> Core Loan Interest Income<br>24,654<br>$<br><br>24,872<br>$<br><br>25,988<br>$<br><br>27,861<br>$<br><br>28,692<br>$<br><br>Average Loans<br>2,301,328<br>$<br><br>2,389,919<br>$<br><br>2,534,071<br>$<br><br>2,655,027<br>$<br><br>2,755,622<br>$<br><br>Less: Average PPP Loans<br>(165,099)<br><br><br>(148,881)<br><br><br>(149,312)<br><br><br>(76,006)<br><br><br>(39,900)<br><br><br> Core Average Loans<br>2,136,229<br>$<br><br>2,241,038<br>$<br><br>2,384,759<br>$<br><br>2,579,021<br>$<br><br>2,715,722<br>$<br><br>Core Loan Yield<br>4.59%<br>4.50%<br>4.37%<br>4.28%<br>4.20%<br>As of and for the quarter ended,
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