2020 Annual Report

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

the effective interest rates and no such evaluation is required. When elected, the optional expedient for contract modifications must be applied consistently for all eligible contracts or eligible transactions. The expedients and exceptions in this update are available to all entities starting March 12, 2020 through December 31, 2022. The Company is in the process of evaluating the impact of this pronouncement on those financial assets and liabilities where LIBOR is used as an index rate. Subsequent Events

Subsequent events have been evaluated through March 11, 2021, which is the date the consolidated financial statements were available to be issued.

Note 2: Earnings Per Share

Basic earnings per common share are computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per common share are calculated by dividing net income by the weighted average number of shares adjusted for the dilutive effect of stock compensation. For the years ended December 31, 2020, 2019 and 2018, 732,433, 303,000, and 130,000, respectively, of stock options, restricted stock awards and restricted stock units were excluded from the calculation because they were deemed to be antidilutive.

The following table presents the numerators and denominators for basic and diluted earnings per share computations for the years ended December 31, 2020, 2019 and 2018:

Year Ended December 31,

2020 2018 Net Income Available to Common Shareholders . . . . . . . . . . . . . . . . . . . . $ 27,194 $ 31,403 $ 26,920 Weighted Average Common Stock Outstanding: Weighted Average Common Stock Outstanding (Basic). . . . . . . . . . . . . 28,582,064 29,358,644 29,001,393 Dilutive Effect of Stock Compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . 588,156 638,132 434,821 Weighted Average Common Stock Outstanding (Dilutive) . . . . . . . . . . 29,170,220 29,996,776 29,436,214 2019

Basic Earnings per Common Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Diluted Earnings per Common Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0.95 $

1.07 $

0.93 0.91

0.93

1.05

Note 3: Bank-Owned Certificates of Deposit

Certificates of deposit in other financial institutions by maturity are as follows:

2020

2019

Certificates of Deposit at Cost Maturing in: One Year or Less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 980 $ 1,229 After One Year Through Five Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,880 1,425 $ 2,860 $ 2,654

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