Bridgewater Bank Annual Report

Bridgewater Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (dollars in thousands, except share data)

Condensed Statements of Income

December 31, December 31, December 31, 2018 2017 2016

INCOME Dividend Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Interest Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EXPENSE Interest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Interest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . LOSS BEFORE INCOME TAX BENEFIT AND EQUITY IN UNDISTRIBUTED EARNINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Income Tax Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . INCOME (LOSS) BEFORE EQUITY IN UNDISTRIBUTED EARNINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Equity in Undistributed Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,100 $

— $

4,500

3

9

5

136

145 154

50

1,239

4,555

2,162 1,152 3,314

1,405

731 297

555

1,960

1,028

(2,075)

(1,806)

3,527

924

713

400

(1,151) 28,071

(1,093) 17,982

3,927 9,288

$ 26,920 $ 16,889 $ 13,215

Condensed Statements of Cash Flows

December 31, December 31, December 31, 2018 2017 2016

CASH FLOWS FROM OPERATING ACTIVITIES Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 26,920 $ 16,889 $ 13,215 Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities: Equity in Undistributed Earnings of Subsidiaries . . . . . . . . . . . . . . . . . . . (28,071) (17,982) (9,288) Changes in Other Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . (368) 180 (490) Net Cash Provided (Used) by Operating Activities . . . . . . . . . . . . . . . . . . . (1,519) (913) 3,437 CASH FLOWS FROM INVESTING ACTIVITIES Net Decrease in Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 1,761 Investment in Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (25,000) (25,000) (22,750) Net Cash Used in Investing Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (25,000) (25,000) (20,989) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Notes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 20,000 Principal Payments on Notes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,000) (2,000) (17,042) Proceeds from Issuance of Subordinated Debt . . . . . . . . . . . . . . . . . . . . . . . — 24,484 — Principal Payments on Subordinated Debentures . . . . . . . . . . . . . . . . . . . . . — — (1,500) Stock Options Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 180 100 Issuance of Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,857 — 26,046 Redemption and Cancellation of Common Stock . . . . . . . . . . . . . . . . . . . . . — — (192) Net Cash Provided by Financing Activities . . . . . . . . . . . . . . . . . . . . . . . 56,963 22,664 27,412 NET CHANGE IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . 30,444 (3,249) 9,860 Cash and Cash Equivalents Beginning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,054 18,303 8,443 Cash and Cash Equivalents Ending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 45,498 $ 15,054 $ 18,303

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