Bridgewater Bank Annual Report

As of and for the year ended December 31,

2018

2017

2016

2015

2014

Per Common Share Data (1) Basic Earnings Per Share. . . . . . . . . . . . . . . . . . . . . . . . . . $ Diluted Earnings Per Share . . . . . . . . . . . . . . . . . . . . . . . . Book Value Per Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tangible Book Value Per Share (2) . . . . . . . . . . . . . . . . . . .

0.93 $

0.69 $

0.59 $

0.65 $

0.63 0.60 3.36

0.91 7.34 7.22

0.68 5.56 5.40

0.58 4.69 4.53

0.64 4.05 4.05

3.36 Basic Weighted Average Shares Outstanding . . . . . . . . . . . 29,001,393 24,604,464 22,294,837 17,269,448 15,877,647 Diluted Weighted Average Shares Outstanding . . . . . . . . . 29,436,214 25,017,690 22,631,741 17,606,253 16,506,363 Shares Outstanding at Period End . . . . . . . . . . . . . . . . . . . 30,097,274 24,679,861 24,589,861 19,819,349 15,979,325 Selected Performance Ratios Return on Average Assets (ROA) . . . . . . . . . . . . . . . . . . . 1.51 % 1.16 % (6) 1.20 % 1.39 % 1.51 % Return on Average Common Equity (ROE) . . . . . . . . . . . . 13.87 13.18 (6) 12.88 17.50 20.49 Return on Average Tangible Common Equity (2) . . . . . . . . . 14.15 13.60 13.23 17.50 20.49 Yield on Interest Earning Assets . . . . . . . . . . . . . . . . . . . . 4.88 4.76 4.78 4.99 5.19 Yield on Total Loans, Gross . . . . . . . . . . . . . . . . . . . . . . . 5.23 5.10 5.20 5.37 5.82 Cost of Interest Bearing Liabilities. . . . . . . . . . . . . . . . . . . 1.65 1.19 1.09 1.08 0.91 Cost of Total Deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.12 0.80 0.76 0.77 0.64 Net Interest Margin (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.72 3.92 4.00 4.18 4.49 Efficiency Ratio (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46.5 44.4 45.8 43.6 40.6 Adjusted Efficiency Ratio (5) . . . . . . . . . . . . . . . . . . . . . . . 41.7 41.1 N/A N/A N/A Noninterest Expense to Average Assets . . . . . . . . . . . . . . . 1.78 1.76 1.84 1.84 1.82 Adjusted Noninterest Expense to Average Assets (5) . . . . . . 1.59 1.62 N/A N/A N/A Loan to Deposit Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106.7 100.6 97.8 104.9 99.5 Core Deposits to Total Deposits. . . . . . . . . . . . . . . . . . . . . 74.2 76.7 77.2 79.4 83.2 Tangible Common Equity to Tangible Assets (2) . . . . . . . . . 11.03 8.26 8.86 8.63 7.65 Selected Asset Quality Data Loans 30-89 Days Past Due. . . . . . . . . . . . . . . . . . . . . . . . $ 311 $ 664 $ 677 $ 1,087 $ 1,225 Loans 30-89 Days Past Due to Total Loans . . . . . . . . . . . . 0.02 % 0.05 % 0.07 % 0.14 % 0.20 % Nonperforming Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 581 $ 1,139 $ 2,323 $ 2,338 $ 923 Nonperforming Loans to Total Loans . . . . . . . . . . . . . . . . 0.03 % 0.08 % 0.23 % 0.29 % 0.15 % Foreclosed Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ - $ 581 $ 4,183 $ 726 $ 2,944 Nonaccrual Loans to Total Loans . . . . . . . . . . . . . . . . . . . 0.03 % 0.08 % 0.23 % 0.29 % 0.15 %

Nonaccrual Loans and Loans Past Due 90 Days and Still Accruing to Total Loans. . . . . . . . . . . . . . . . . . . . . . . . . Nonperforming Assets (4) . . . . . . . . . . . . . . . . . . . . . . . . . . $ Nonperforming Assets to Total Assets (4) . . . . . . . . . . . . . . Allowance for Loan Losses to Total Loans. . . . . . . . . . . . . Allowance for Loans Losses to Nonperforming Loans . . . . 3,447.68 Net Loan Charge-Offs (Recoveries) to Average Loans . . . . 0.00 0.03 1.20

0.08

0.23

0.29

0.15

581 $ 1,720 $

6,506 $ 3,064 $ 3,867

0.03 %

0.11 %

0.52 %

0.33 %

0.55 %

1.22

1.23

1.26

1.59

1,448.81

530.91

429.94

1,028.06

0.00

0.11

0.14

0.07

Capital Ratios (Bank Only) Tier 1 Leverage Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tier 1 Risk-based Capital Ratio . . . . . . . . . . . . . . . . . . . . . Total Risk-based Capital Ratio . . . . . . . . . . . . . . . . . . . . . Capital Ratios (Consolidated) Tier 1 Leverage Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tier 1 Risk-based Capital Ratio . . . . . . . . . . . . . . . . . . . . . Total Risk-based Capital Ratio . . . . . . . . . . . . . . . . . . . . . Growth Ratios Percentage Change in Total Assets . . . . . . . . . . . . . . . . . . Percentage Change in Total Loans, Gross . . . . . . . . . . . . . Percentage Change in Total Deposits . . . . . . . . . . . . . . . . . Percentage Change in Shareholders' Equity . . . . . . . . . . . . Percentage Change in Net Income . . . . . . . . . . . . . . . . . . . Percentage Change in Diluted Earnings Per Share . . . . . . . Percentage Change in Tangible Book Value Per Share (2) . .

10.82 %

9.83 %

9.24 %

9.49 %

9.70 %

11.63 12.76

11.15 12.37

11.38 12.63

11.06 12.31

11.47 12.73

11.23 %

8.38 %

9.44 %

8.89 %

7.75 %

12.07 14.55

9.49 12.46

11.49 12.74

10.34 11.59

9.15 10.41

22.1 %

28.3 %

35.7 %

32.3 %

21.9 %

23.6 16.5 61.1 59.4 35.5 33.7

34.6 30.9 18.9 27.8 15.6 19.3

25.2 34.3 43.9 18.0

33.6 26.7 49.2 12.8

25.5 15.2 26.9 53.8 34.6 25.8

(8.2)

5.7

11.9

20.3

(1) Includes shares of common stock and non-voting common stock. On October 25, 2018, the Company exchanged shares of common stock for all of the outstanding shares of non-voting common stock. Following the exchange, no shares of non-voting common stock were outstanding. (2) Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details. (3) Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of 21% for 2018 and 35% for 2017.

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