Bridgewater Bancshares, Inc._2023 Annual Report

The following table presents the dollar and percentage composition of the loan portfolio by category, at the dates indicated:

December 31, 2023

December 31, 2022

December 31, 2021

December 31, 2020

December 31, 2019

(dollars in thousands)

Amount

Percent

Amount

Percent

Amount

Percent

Amount

Percent

Amount

Percent

Commercial . . . . . . . $ 464,061

12.4 % $ 435,344

12.2 % $ 360,169

12.8 % $ 304,220

13.1 % $ 276,035

14.5 %

Paycheck Protection Program.......... Construction and Land Development ...... 1-4 Family Construction. . . . . . . Real Estate Mortgage: 1-4 Family Mortgage ...... Multifamily .... CRE Owner Occupied ...... CRE Nonowner Occupied ...... Total Real Estate Mortgage Loans . . . . Consumer and Other. Total Loans, Gross Allowance for Credit Losses ........... Net Deferred Loan Fees.............

NM

NM

1,049

—

26,162

0.9

138,454

6.0

—

—

232,804

6.3

295,554

8.3

231,922

8.2

110,579

4.7

107,519

5.6

65,087

1.8

70,242

2.0

49,552

1.8

59,638

2.6

89,257

4.7

402,396 1,388,541

10.8 37.3

355,474 1,306,738

10.0 36.6

305,317 910,243

10.8 32.3

294,479 626,465

12.7 26.9

260,611 515,014

13.6 26.9

175,783

4.7

149,905

4.2

111,096

4.0

75,604

3.2

66,584

3.5

987,306

26.5

947,008

26.5

818,569

29.0

709,300

30.5

592,545

31.0

2,954,026

79.3

2,759,125

77.3 0.2

2,145,225

76.1 0.2

1,705,848

73.3 0.3

1,434,754

75.0 0.2

8,304

0.2

8,132

6,442

7,689

4,473

3,724,282 100.0 % 3,569,446 100.0 % 2,819,472 100.0 % 2,326,428 100.0 % 1,912,038 100.0 %

(50,494)

(47,996)

(40,020)

(34,841)

(22,526)

(6,573)

(9,293)

(9,535)

(9,151)

(5,512)

Total Loans, Net . . . . . $ 3,667,215

$ 3,512,157

$ 2,769,917

$ 2,282,436

$ 1,884,000

The Company primarily focuses on real estate mortgage lending, which constituted 79.3% of the portfolio as of December 31, 2023. The composition of the portfolio has remained relatively consistent with prior periods and the Company does not expect any significant changes in the foreseeable future in the composition of the loan portfolio or in the emphasis on real estate lending. As of December 31, 2023, investor CRE loans totaled $2.67 billion, consisting of $987.3 million of loans secured by nonowner occupied CRE, $1.39 billion of loans secured by multifamily residential properties, $65.1 million of 1-4 family construction loans and $232.8 million of construction and land development loans. Investor CRE loans represented 71.8% of the total gross loan portfolio and 482.4% of the Bank’s total risk-based capital at December 31, 2023, compared to 73.4% and 514.9%, respectively, at December 31, 2022. The following table provides a breakdown of CRE nonowner occupied loans by collateral types as of December 31, 2023:

Percent of

Percent of Total Loan Portfolio

CRE Nonowner Occupied Portfolio

Balance

(dollars in thousands)

Collateral Type: Industrial................................................. $ Office.................................................... Retail .................................................... Nursing/AssistedLiving..................................... Mini Storage Facility ....................................... Medical Office ............................................ Other .................................................... Total CRE Nonowner Occupied ........................... $

247,569 194,359 151,949 136,192 92,527 88,719 75,991 987,306

25.1 %

6.6 %

19.7 15.4 13.8

5.2 4.1 3.7 2.5 2.4 2.0

9.4 9.0 7.6

100.0 %

26.5 %

64