2020 Annual Report

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

The following table presents information pertaining to options outstanding at December 31, 2020:

Options Outstanding

Options Exercisable

Weighted Average Number of Weighted Average Remaining Contractual

Number of Weighted Average Options Exercise Price

Range of Exercise Prices

Options Exercise Price

Life in Years

$

2.13 - 3.99 7.00 - 7.99 8.00 - 8.99

522,750 $

2.94 7.47 8.76

3.0 6.8 9.3 9.4 8.4 8.6 7.4 6.1

522,750 $

2.94 7.47

968,500 25,000 10,000 85,000 278,000 25,000

576,100

— —

— —

10.00 - 10.99 11.00 - 11.99 12.00 - 12.99 13.00 - 13.99

10.08 11.27 12.89 13.22

22,000 74,500 10,000

11.34 12.91 13.22

Totals

1,914,250 $

7.29

1,205,350 $

5.96

As of December 31, 2020, there was $2,027 of total unrecognized compensation cost related to nonvested stock options granted under the 2012 Plan, 2017 Plan and 2019 EIP that is expected to be recognized over a weighted-average period of 2.7 years.

The following table presents an analysis of nonvested options to purchase shares of the Company’s stock issued and outstanding for the year ended December 31, 2020:

Weighted Number of Average Grant Shares Date Fair Value

Nonvested Options at December 31, 2019 . . . . . . . . . . . . . . . . . . . . . 969,600 $ Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000 Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (287,700) Forfeited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (33,000) Nonvested Options at December 31, 2020 . . . . . . . . . . . . . . . . . . . . . 708,900 $

3.08 4.39 2.98 2.80 3.24

Restricted Stock Awards

In 2019, the Company granted restricted stock awards out of the 2019 EIP. These awards vest in equal annual installments on the first four anniversaries of the date of the grant. Nonvested restricted stock awards are classified as outstanding shares with voting and forfeitable dividend rights.

The following table presents an analysis of nonvested restricted stock awards outstanding for the year ended December 31, 2020 and 2019:

December 31, 2020

December 31, 2019

Weighted

Weighted Average

Number of Average Grant Shares Date Fair Value

Shares Exercise Price

Nonvested at December 31, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132,960 $ Granted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,641 Vested. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (32,439) Forfeited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,200) Nonvested at December 31, 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,962 $

12.92

— $

—

10.29 132,960

12.92

12.92 10.91

— —

— —

12.63 132,960 $

12.92

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