2020 Annual Report

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

Note 5: Loans

The following table presents the components of the loan portfolio at December 31, 2020 and 2019:

December 31, December 31, 2020 2019 Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 304,220 $ 276,035 Paycheck Protection Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138,454 — Construction and Land Development . . . . . . . . . . . . . . . . . . . . . . . . 170,217 196,776 Real Estate Mortgage: 1-4 Family Mortgage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294,479 260,611 Multifamily. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 626,465 515,014 CRE Owner Occupied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,604 66,584 CRE Nonowner Occupied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 709,300 592,545 Total Real Estate Mortgage Loans. . . . . . . . . . . . . . . . . . . . . . . . . . . 1,705,848 1,434,754 Consumer and Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,689 4,473 Total Loans, Gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,326,428 1,912,038 Allowance for Loan Losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (34,841) (22,526) Net Deferred Loan Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,151) (5,512) Total Loans, Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,282,436 $ 1,884,000

The following table presents the activity in the allowance for loan losses, by segment, for the years ended December 31, 2020, 2019 and 2018:

Paycheck Construction

CRE

CRE

Protection and Land 1-4 Family Owner Nonowner Consumer Commercial Program Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total

Balance at January 1, 2018 . . . . . . . . . $ 2,435 $

— $

1,892 $ 2,317 $ 3,170 $ 956 $ 5,087

60 $

585 $ 16,502 111 3,575 — (421)

Provision for Loan Losses . . Loans Charged-off . . . . . . . . Recoveries of Loans. . . . . . .

448

— — —

632

242

1,474 (148)

785

31

(358)

(21)

— —

— —

— —

(32)

(10)

25

285

59

6

—

375

Balance at December 31, 2018 . . . . . . . $ 2,898 $

— $

2,451 $ 2,597 $ 4,644 $ 808 $ 5,872

65 $

696 $ 20,031 58 2,700 — (388)

Provision for Loan Losses . . Loans Charged-off . . . . . . . . Recoveries of Loans. . . . . . .

312

— — —

(250)

269

1,180

(16) 1,100

47

—

(195)

— —

— —

— —

(33)

(160)

8

1

168

6

—

183

Balance at December 31, 2019 . . . . . . . $ 3,058 $

— $

2,202 $ 2,839 $ 5,824 $ 792 $ 6,972 $

85 $

754 $ 22,526 (22) 12,750 — (517)

Provision for Loan Losses . . Loans Charged-off . . . . . . . . Recoveries of Loans. . . . . . .

2,984

70 — —

289 1,223

3,693

360 4,019

134

— —

(144)

— —

—

— —

(27)

(346)

7

54

10

11

—

82

Balance at December 31, 2020 . . . . . . . $ 5,703 $

70 $

2,491 $ 3,972 $ 9,517 $ 1,162 $ 10,991 $ 203 $

732 $ 34,841

111