2020 Annual Report

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

The following tables present the balance in the allowance for loan losses and the recorded investment in loans, by segment, based on impairment method as of December 31, 2020 and 2019:

Paycheck Construction

CRE

CRE

Protection Owner Nonowner Consumer Allowance for Loan Losses at December 31, 2020 Commercial Program Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Individually Evaluated for Impairment . . . $ 37 $ — $ — $ — $ — $ — $ — $ 13 $ — $ 50 Collectively Evaluated for Impairment . . . 5,666 70 2,491 3,972 9,517 1,162 10,991 190 732 34,791 Totals. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,703 $ 70 $ 2,491 $ 3,972 $ 9,517 $ 1,162 $ 10,991 $ 203 $ 732 $ 34,841 and Land 1--4 Family

Allowance for Loan Losses at December 31, 2019 Individually Evaluated for Impairment . . . $ Collectively Evaluated for Impairment . . . 3,027

31 $ — $

— $

— $

— $ — $

— $ 14 $

— $ 45 754 22,481 754 $ 22,526

—

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

71

Totals. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,058 $ — $ 2,202 $ 2,839 $ 5,824 $ 792 $ 6,972 $ 85 $

Paycheck Construction

CRE

CRE

Protection

and Land 1--4 Family

Owner Nonowner Consumer

Loans at December 31, 2020

Commercial Program Development Mortgage Multifamily Occupied Occupied and Other

Total

Individually Evaluated for Impairment. . . . $ 239 $ — $ 13 $ 15,164 Collectively Evaluated for Impairment. . . . 303,981 138,454 170,061 292,981 626,465 74,734 696,912 7,676 2,311,264 Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 304,220 $ 138,454 $ 170,217 $ 294,479 $ 626,465 $ 75,604 $ 709,300 $ 7,689 $ 2,326,428 156 $ 1,498 $ — $ 870 $ 12,388 $

Loans at December 31, 2019 Individually Evaluated for Impairment. . . . $ 273 $ — $

176 $ 1,059 $

— $ 236 $ — $

14 $

1,758

Collectively Evaluated for Impairment. . . . 275,762 — 196,600 259,552 515,014 66,348 592,545 4,459 1,910,280 Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 276,035 $ — $ 196,776 $ 260,611 $ 515,014 $ 66,584 $ 592,545 $ 4,473 $ 1,912,038

The following table presents information regarding total carrying amounts and total unpaid principal balances of impaired loans by loan segment as of December 31, 2020 and 2019:

December 31, 2020

December 31, 2019

Recorded Principal Related Investment Balance Allowance Investment Balance Allowance Related Recorded Principal

Loans With No Related Allowance for Loan Losses: Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 122 $ 122 $

— —

— $ 167 $ 167 $

Construction and Land Development . . . . . . . . . . . Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage. . . . . . . . . 1st REM - Rentals. . . . . . . . . . . . . . . . . . . . . . . . . . . . CRE Owner Occupied . . . . . . . . . . . . . . . . . . . . . . . .

156

763

—

176 785

884 884

— 302 489 — 757 757 — 236 236

— — — — —

614

614

870 870

CRE Nonowner Occupied . . . . . . . . . . . . . . . . . . . . . 12,388 12,388 Totals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,034 15,641

—

—

—

— 1,638 2,434

Loans With An Allowance for Loan Losses: Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Consumer and Other . . . . . . . . . . . . . . . . . . . . . . . . . Totals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

117

120

37 106 109

31 14 45

13

13

14 14

13

130 133

50 120 123

Grand Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,164 $ 15,774 $

50 $ 1,758 $ 2,557 $ 45

112