Bridgewater Bancshares, Inc._2023 Annual Report

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

The following table presents the future expected operating lease payments under the Company's operating lease agreements as of December 31, 2023:

December 31,

(dollars in thousands)

2023

2024........................................................ $ 2025 ........................................................ 2026 ........................................................ 2027 ........................................................ 2028 ........................................................ Thereafter.................................................... Total Undiscounted Lease Payments ............................ Discount for Present Value of Expected Cash Flows . . . . . . . . . . . . . . . . . TotalLeaseLiability........................................ $

587 540 354 251 254

53

2,039

(67)

1,972

The Greenwood location is leased pursuant to the terms of a non - cancelable lease agreement with Bridgewater Properties Greenwood, LLC, a related party through common ownership, in effect at December 31, 2023. The lease contains one option to extend the lease for a period of five years. Future minimum rent commitments under the operating lease are listed below at December 31, 2023.

2023

(dollars in thousands)

2024 .................................................................. 2025 .................................................................. 2026 .................................................................. Total ...............................................................

$ 178

181 108

$ 467

The Company receives rents from the lease of office and retail space in its corporate headquarters building. Rental income is included in noninterest expense as an offset to rental expense. Future minimum rental income under these leases are listed below at December 31, 2023.

(dollars in thousands)

2023

2024 .................................................................. 2025 .................................................................. 2026 .................................................................. 2027 .................................................................. 2028 .................................................................. Thereafter ............................................................. Total ...............................................................

$ 514

519 301 263 231 486

$ 2,314

Rental income, which is included in occupancy and equipment expense, including common area maintenance pertaining to banking premises for the years ended December 31, 2023, 2022 and 2021, totaled $894,000, $907,000 and $634,000, respectively.

112