Bridgewater Bancshares, Inc._2023 Annual Report

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

Note 6: Premises and Equipment Premises and equipment are summarized as follows for the years ended December 31, 2023 and 2022:

Range of

December 31, December 31,

(dollars in thousands)

Useful Lives

2023

2022

Land ............................................................ Building ........................................................ 15 - 39 Years Leasehold Improvements ........................................... 3 - 10 Years Furniture and Equipment ........................................... 2 - 5 Years Subtotal ...................................................... AccumulatedDepreciation ......................................... Totals ........................................................ N/A

$

8,119 $

5,174 41,265 2,380 6,978 55,797 (7,352)

41,266 1,951 6,544 57,880 (8,994)

$ 48,886 $ 48,445

Depreciation and amortization expense charged to noninterest expense for the years ended December 31, 2023, 2022 and 2021, totaled $2.5 million, $2.6 million and $2.4 million, respectively. Note 7: Intangible Assets The following table presents a summary of intangible assets at December 31, 2023 and 2022:

December 31,

(dollars in thousands) 2022 CoreDepositIntangible ....................................... $ 1,093 $ 1,093 Favorable Lease ............................................. 445 445 Subtotal ................................................. 1,538 1,538 Accumulated Amortization .................................... (1,350) (1,250) Totals ................................................... $ 188 $ 288 2023

Amortization expense of intangible assets was $100,000 for the year ended December 31, 2023, and $191,000 for the years ended December 31, 2022 and 2021. The following table presents the estimated future amortization of the favorable lease asset for the next five years and thereafter. The projections of amortization expense are based on existing asset balances as of December 31, 2023.

Favorable

(dollars in thousands) Lease 2024................................................................ $ 34 2025 ................................................................ 34 2026 ................................................................ 34 2027 ................................................................ 34 2028 ................................................................ 34 Thereafter ........................................................... 18 Totals ............................................................ $ 188

Note 8: Leases The Company’s operating leases are real estate leases which are comprised of bank branches and office space with terms extending through 2029. Prior to 2022, these leases were not recognized on the Company's consolidated

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