2020 Annual Report

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

The following table presents a summary of active loan modifications made in response to the COVID-19 pandemic, by loan segment and modification type, as of December 31, 2020:

Interest-Only

Payment Deferral

Extended Amortization

Total

(dollars in thousands)

Amount # of Loans Amount # of Loans Amount # of Loans Amount # of Loans

Commercial . . . . . . . . . . . . . . . $ Real Estate Mortgage: 1 - 4 Family Mortgage . . . . . .

5,212

9 $

—

— $

4,834

1 $ 10,046

10

48

1 1

— —

— —

— — — —

— — — —

48

1 1 3

Multifamily . . . . . . . . . . . . . . CRE Owner Occupied . . . . . . CRE Nonowner Occupied . . .

23,636

23,636

— 11

613

3

613

—

—

32,209

11 26

32,209

—

Totals . . . . . . . . . . . . . . . . . . $ 61,105

22 $

613

3 $

4,834

1 $ 66,552

Note 6: Premises and Equipment

Premises and equipment are summarized as follows for the years ended December 31, 2020 and 2019:

Range of

December 31,

Useful Lives

2020

2019

N/A

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Leasehold Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Furniture and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Construction in Progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 5,174 $ 5,174

15 - 39 Years 3 ဩ 10 Years 2 ဩ 5 Years

41,025

3,487 3,344 3,902

2,538 6,160

N/A

— 16,693

54,897 32,600 (3,910) (4,972) $ 50,987 $ 27,628

Depreciation and amortization expense charged to noninterest expense for the years ended December 31, 2020, 2019 and 2018, totaled $1,206, $1,008 and $761, respectively. Construction in progress represents amounts paid for the construction of the Company’s new corporate headquarters building. The new corporate headquarters building was placed into service in the third quarter of 2020. Pursuant to the terms of non-cancelable lease agreements in effect at December 31, 2020, pertaining to banking premises in Bloomington, Downtown Minneapolis, St. Paul and Uptown Minneapolis (Drive-Up), total future minimum rent commitments under the leases are as follows:

2020 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 337 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 328 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331 Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 804 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,444

Rent expense, including common area maintenance pertaining to banking premises for the years ended December 31, 2020, 2019 and 2018, totaled $1,178, $1,264 and $870, respectively.

The Bloomington, Downtown Minneapolis and St. Paul leases each contain two consecutive options to extend the lease for a period of five years each. The Uptown Minneapolis (Drive-Up) contains one option to extend the lease for

116