Bridgewater Bank Annual Report

The following table details the dollar composition and percentage composition of the loan portfolio by category, at the dates indicated:

December 31, 2018

December 31, 2017

December 31, 2016

December 31, 2015 Amount Percent

December 31, 2014

(dollars in thousands) Amount Percent Commercial . . . . . . . . . $ 260,833 15.7 % $ 217,753 16.2 % $ 132,592 13.2 % $ 103,905 13.0 % $ 64,143 10.7 % Construction and Land Development . . . . . . 210,041 12.6 130,586 9.7 106,070 10.6 116,314 14.6 90,195 15.1 Real Estate Mortgage: 1 - 4 Family Mortgage . . . . . . 226,773 13.6 195,707 14.5 178,815 17.9 143,232 17.9 141,601 23.7 Multifamily . . . . . . 407,934 24.5 317,872 23.6 205,250 20.5 168,458 21.1 143,912 24.0 CRE Owner Occupied. . . . . . . 64,458 3.9 65,909 4.9 62,347 6.2 48,917 6.1 31,734 5.3 CRE Nonowner Occupied. . . . . . . 490,632 29.5 415,034 30.8 311,835 31.2 215,995 27.0 123,399 20.6 Total Real Estate Mortgage Loans . . . . 1,189,797 71.5 994,522 73.8 758,247 75.8 576,602 72.1 440,646 73.6 Consumer and Other. . . 4,260 0.2 4,252 0.3 3,830 0.4 2,676 0.3 3,563 0.6 Total Loans, Gross . 1,664,931 100.0 % 1,347,113 100.0 % 1,000,739 100.0 % 799,497 100.0 % 598,547 100.0 % Allowance for Loan Losses . . . . . . . . . . . (20,031) (16,502) (12,333) (10,052) (9,489) Net Deferred Loan Fees . . . . . . . . . . . . . (4,515) (4,104) (3,266) (2,686) (1,762) Total Loans, Net . . . . . . . $ 1,640,385 $ 1,326,507 $ 985,140 $ 786,759 $ 587,296 The Company’s primary focus has been on real estate mortgage lending, which constituted 71.5% of the portfolio as of December 31, 2018. The composition of the portfolio remained consistent with prior periods and although the Company expects continued growth, it does not expect any significant changes in the foreseeable future in the composition of the loan portfolio or in the emphasis on real estate lending. As of December 31, 2018, CRE loans totaled $1.11 billion, consisting of $490.6 million of loans secured by nonowner occupied CRE, $407.9 million of loans secured by multifamily residential properties and $210.0 million of construction and land development loans. CRE loans represented 66.6% of the total gross loan portfolio and 480.2% of the Bank’s total risk-based capital at December 31, 2018. The following table details time to contractual maturity and sensitivity to interest rate changes for the loan portfolio at December 31, 2018: Amount Percent Amount Percent Amount Percent

As of December 31, 2018

Due in One Year More Than One

(dollars in thousands)

or Less

Year to Five Years After Five Years

Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Construction and Land Development . . . . . . . . . . . . . . . . . . . . . . . . . . Real Estate Mortgage: 1 - 4 Family Mortgage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Multifamily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CRE Owner Occupied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CRE Nonowner Occupied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Real Estate Mortgage Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Consumer and Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Loans, Gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Interest Rate Sensitivity: Fixed Interest Rates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Floating or Adjustable Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Loans, Gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

127,439 $

92,689 $

40,705 21,632 28,114 219,032 31,223 172,524 450,893

155,117

33,292

43,795 41,773 7,948 63,266 156,782

154,864 147,129 25,287 254,842 582,122

1,207

2,360

693

440,545 $

710,463 $

513,923

154,318 $

537,119 $

162,901 351,022 513,923

286,227

173,344

440,545 $

710,463 $

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