2020 Annual Report

Bridgewater Bancshares, Inc. and Subsidiaries Consolidated Statements of Cash Flows (dollars in thousands)

December 31,

December 31,

December 31,

2020

2019

2018

CASH FLOWS FROM OPERATING ACTIVITIES Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Net Amortization on Securities Available for Sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net (Gain) Loss on Sales of Securities Available for Sale . . . . . . . . . . . . . . . . . . . . . . . Provision for Loan Losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Depreciation and Amortization of Premises and Equipment . . . . . . . . . . . . . . . . . . . . . . Loss on Sale of Premises and Equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amortization of Other Intangible Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amortization of Subordinated Debt Issuance Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net (Gain) Loss on Sale of Foreclosed Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stock-based Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Deferred Income Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Changes in Operating Assets and Liabilities: Accrued Interest Receivable and Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accrued Interest Payable and Other Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Cash Provided by Operating Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CASH FLOWS FROM INVESTING ACTIVITIES (Increase) Decrease in Bank-owned Certificates of Deposit . . . . . . . . . . . . . . . . . . . . . . Proceeds from Sales of Securities Available for Sale . . . . . . . . . . . . . . . . . . . . . . . . . . . Proceeds from Maturities, Paydowns, Payups and Calls of Securities Available for Sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Purchases of Securities Available for Sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Proceeds from Sale of Premises and Equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Increase in Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net (Increase) Decrease in FHLB Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Purchases of Premises and Equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Proceeds from Sales of Foreclosed Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Cash Used in Investing Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CASH FLOWS FROM FINANCING ACTIVITIES Net Increase in Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Decrease in Federal Funds Purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Principal Payments on Notes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Proceeds from FHLB Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Principal Payments on FHLB Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Issuance of Subordinated Debt, Net of Issuance Costs . . . . . . . . . . . . . . . . . . . . . . . . . . Stock Options Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Issuance of Common Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stock Repurchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Shares Repurchased for Tax Withholdings Upon Vesting of Restricted Stock-Based Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Cash Provided by Financing Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NET CHANGE IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . . . . . . . . Cash and Cash Equivalents Beginning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cash and Cash Equivalents Ending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ SUPPLEMENTAL CASH FLOW DISCLOSURE Cash Paid for Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Cash Paid for Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Loans Transferred to Foreclosed Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Premises and Equipment Transferred to Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Investment Securities Purchased but Not Settled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27,194 $

31,403 $

26,920

2,691

2,523

3,028

(1,503) 12,750

(516)

125

2,700 1,008

3,575

1,206

761

2

9

—

191 223

191 103

191 103 225 799

(69)

—

1,668

752

(2,590)

(747)

(1,298)

(5,121) (13,692)

529

(7,627)

1,641

2,606

23,019

39,527

29,408

(206)

651

(233)

40,862

42,864

24,684

32,577

41,118

22,965

(170,488)

(98,817)

(78,368)

—

1

—

(411,320)

(247,573)

(317,453)

2,797

(210)

(2,467) (3,720)

(24,688)

(15,572)

134

1,327

356

(530,332)

(276,211)

(354,236)

678,326

262,376 (18,000) (2,000) 42,500 (30,000)

221,584

(5,000) (2,000)

—

(2,000)

100,000

70,000

(179,000)

(14,000)

—

48,783

—

317

258

106

—

—

58,857

(10,334)

(14,959)

—

(39)

—

—

636,053

240,175

329,547

128,740 31,935

3,491

4,719

28,444

23,725 28,444

160,675 $

31,935 $

27,004 $

29,367 $

19,987

10,723

7,625 1,258

7,865

134 121

— — —

—

14,673

—

See accompanying notes to consolidated financial statements.

94