2020 Annual Report

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

Note 4: Securities

The following tables present the amortized cost and estimated fair value of securities with gross unrealized gains and losses at December 31, 2020 and 2019:

December 31, 2020 Gross Gross Amortized Unrealized Unrealized Cost

Gains Losses Fair Value

Securities Available for Sale: Municipal Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,975 9,373 (336) 115,012 Mortgage-Backed Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123,395 2,029 (1,164) 124,260 Corporate Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,116 1,240 (201) 72,155 SBA Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,455 32 (380) 40,107 Asset-Backed Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,135 976 (16) 39,095 Total Securities Available for Sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 379,076 $ 13,650 $ (2,097) $ 390,629

December 31, 2019 Gross Gross Amortized Unrealized Unrealized Cost

Gains Losses Fair Value

Securities Available for Sale: U.S. Treasury Securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,990 $ Municipal Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99,441 6,338 (36) 105,743 Mortgage-Backed Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,312 697 (281) 64,728 Corporate Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,674 633 (131) 50,176 SBA Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,126 35 (602) 49,559 Asset-Backed Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,673 — — 14,673 Total Securities Available for Sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 283,216 $ 7,711 $ (1,050) $ 289,877 The following tables present the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2020 and 2019: 8 $ — $ 4,998

Less Than 12 Months

12 Months or Greater

Total

Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Unrealized

December 31, 2020 Municipal Bonds. . . . . . . . . . . . . . . . . . . . . . . $ 12,023 $ (329) $ Mortgage-Backed Securities . . . . . . . . . . . . . 45,120 (1,163) 1,699

223 $

(7) $ 12,246 $ (336) (1) 46,819 (1,164) (70) 26,073 (201)

Corporate Securities . . . . . . . . . . . . . . . . . . . . 23,643 SBA Securities . . . . . . . . . . . . . . . . . . . . . . . . 3,288 Asset-Backed Securities . . . . . . . . . . . . . . . . . 2,471

(131) 2,430

(3) 28,193 (377) 31,481 (380)

(16) (16) Total Securities Available for Sale . . . . . . . $ 86,545 $ (1,642) $ 32,545 $ (455) $ 119,090 $ (2,097) — — 2,471

109