Bridgewater Bancshares, Inc._2023 Annual Report

Contractual Obligations The following table presents supplemental information regarding total contractual obligations at December 31, 2023: Total Deposits Without a Stated Maturity. . . . . . . . . . . . . . . $ 2,558,838 $ — $ — $ — $ 2,558,838 Time Deposits ................................ 337,988 566,811 200,846 45,465 1,151,110 Notes Payable ................................ 13,750 — — — 13,750 FHLB Advances .............................. 233,000 46,500 40,000 — 319,500 Subordinated Debentures ....................... — — — 80,000 80,000 Commitment to Fund Tax Credit Investments ...... 9,932 — — — 9,932 Operating Lease Obligations .................... 587 894 505 53 2,039 Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,154,095 $ 614,205 $ 241,351 $ 125,518 $ 4,135,169 Operating lease obligations are in place for facilities and land on which banking branches are located. See “Note 8 – Leases” of the Company’s Consolidated Financial Statements included as part of this report for additional information. The Company believes that it will be able to meet all contractual obligations as they come due through the maintenance of adequate cash levels. The Company expects to maintain adequate cash levels through earnings, loan and securities repayments and maturity activity and continued deposit gathering activities. As described above, the Company has in place various borrowing mechanisms for both short-term and long-term liquidity needs. Capital Total shareholders’ equity at December 31, 2023 was $425.5 million, an increase of $31.5 million, or 8.0%, over shareholders’ equity of $394.1 million at December 31, 2022, primarily due to net income retained and a decrease in unrealized losses in the securities portfolio, offset partially by a decrease in unrealized gains in the derivatives portfolio, the adoption of the CECL accounting methodology, preferred stock dividends, and stock repurchases. Tangible book value per share, a non-GAAP financial measure, was $12.84 as of December 31, 2023, an increase of 9.8% from $11.69 as of December 31, 2022. Tangible common equity as a percentage of tangible assets, a non-GAAP financial measure, was 7.73% at December 31, 2023, compared to 7.48% at December 31, 2022. Stock Repurchase Program . During the year ended December 31, 2023, the Company repurchased 423,749 shares of its common stock, representing 1.5% of the Company’s outstanding shares. Shares were repurchased during this period at a weighted average price of $10.72 for a total of $4.5 million. All shares repurchased under the stock repurchase program were converted to authorized but unissued shares. The Company remains committed to maintaining strong capital levels while enhancing shareholder value as it strategically executes its stock repurchase program based on various factors including valuation, capital levels and other uses of capital. Regulatory Capital. The Company and the Bank are subject to various regulatory capital requirements administered by federal banking regulators. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by federal banking regulators that, if undertaken, could have a direct material effect on the Company’s and Bank’s business. Management believes the Company and the Bank met all capital adequacy requirements to which they were subject as of December 31, 2023. The regulatory capital ratios for the Company and the Bank to meet the minimum capital adequacy standards and for the Bank to be considered well capitalized under the prompt corrective action Within One Year One to Three to After (dollars in thousands) Three Years Five Years Five Years

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