Results

Bridgewater Bancshares Inc.

10/29/2020 | Press release | Distributed by Public on 10/29/2020 05:34

Current report filing

0001341317false00013413172020-10-272020-10-27

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K
CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

October 27, 2020

Date of Report

(Date of earliest event reported)

BRIDGEWATER BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

Minnesota

(State or other jurisdiction of

incorporation)

001-38412

(Commission File Number)

26-0113412

(I.R.S. Employer

Identification No.)

4450 Excelsior Boulevard, Suite 100

St. Louis Park, Minnesota

(Address of principal executive offices)

55416

(Zip Code)

Registrant's telephone number, including area code: (952) 893-6868

Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:

Trading Symbol

Name of each exchange on which registered:

Common Stock, $0.01 Par Value

BWB

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 2.02 Results of Operations and Financial Condition.

On October 29, 2020, Bridgewater Bancshares, Inc. (the 'Company') issued a press release announcing its financial results for the three and nine months ended September 30, 2020. A copy of the press release is attached as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.

The information furnished in this Form 8-K, and the related exhibits, shall not be deemed 'filed' for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the 'Exchange Act'), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.

Item 7.01 Regulation FD Disclosure.

The Company hereby furnishes the Investor Presentation attached hereto as Exhibit 99.2.

The information furnished in this Form 8-K, and the related exhibits, shall not be deemed 'filed' for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the 'Exchange Act'), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.

Item 8.01 Other Events.

On October 27, 2020, the Board of Directors of the Company approved a $15 million increase to the Company's previously announced stock repurchase program (the 'Program'), increasing the amount of common stock authorized to be repurchased from $25 million to up to $40 million for the duration of the Program. Additionally, the Board extended the Program to run through October 27, 2022. A copy of the Company's press release announcing the changes to the Program is attached as Exhibit 99.3 to this Form 8-K and is incorporated herein by reference.

Under the Program, the Company may repurchase shares of common stock from time to time in open market or privately negotiated transactions. Any open market repurchases will be conducted in accordance with the limitations set forth in Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the 'Exchange Act'), and other applicable legal requirements. Repurchases may also be made pursuant to a trading plan under Rule 10b5-1 under the Exchange Act, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. The extent to which the Company repurchases its shares, and the timing of such repurchases, will depend upon a variety of factors, including general market and economic conditions, regulatory requirements, availability of funds, and other relevant considerations, as determined by the Company. The Company may, in its discretion, begin, suspend or terminate repurchases at any time prior to the Program's expiration, without any prior notice.

Item 9.01 Financial Statements and Exhibits.

(d)Exhibits

Exhibit 99.1

Press release of Bridgewater Bancshares, Inc., dated October 29, 2020, regarding third quarter 2020 financial results

Exhibit 99.2

Investor Presentation dated October 29, 2020

Exhibit 99.3

Press release of Bridgewater Bancshares, Inc., dated October 29, 2020, announcing increase to and extension of its stock repurchase program

Exhibit 104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Bridgewater Bancshares, Inc.

Date: October 29, 2020

By: /s/ Jerry Baack

Name: Jerry Baack

Title: Chairman, Chief Executive Officer and President

3

Exhibit 99.1

Bridgewater Bancshares, Inc. Announces Third Quarter 2020 Net Income of $7.2 Million, $0.25 Diluted Earnings Per Share

Bridgewater Bancshares, Inc. (Nasdaq: BWB) (the Company), the parent company of Bridgewater Bank (the Bank), today announced net income of $7.2 million, or $0.25 per diluted common share, for the third quarter of 2020, compared to net income of $7.6 million, or $0.26 per diluted common share, for the second quarter of 2020, and net income of $7.8 million, or $0.27 per diluted common share, for the third quarter of 2019.

'The third quarter marked the unveiling of our long awaited new corporate headquarters, and we could not be more excited to complete our relocation to this unconventional space in the heart of our market area,' commented Chairman, Chief Executive Officer, and President, Jerry Baack. 'Not only does our new headquarters create an opportunity for us to safely return to the office, the campus-like atmosphere complements our unique culture. Our third quarter results remained strong, demonstrating our ability to adjust quickly to this historically low interest rate environment and other operating challenges introduced by the pandemic. We remain diligent in the monitoring of our loan portfolio and given the uncertainty of the credit outlook and the current economic environment, we continued to build reserves in the third quarter. The duration of this challenging operating environment is unknown, but we believe our incredibly deep and talented team is ready and capable of handling any challenges that come our way.'

Third Quarter 2020 Financial Results

Diluted

Nonperforming

Adjusted

Tangible common equity

ROA

ROE

earnings per share

assets to total assets

efficiency ratio (1)

to tangible assets (1)

1.05%

10.84%

$

0.25

0.02%

41.7%

9.46%

(1) Represents a non-GAAP financial measure. See 'Non-GAAP FinancialMeasures' for further details.

Linked-Quarter Highlights

Annualized pre-provision net revenue return on average assets, a non-GAAP financial measure, was 1.94% for the third quarter of 2020, compared to 2.00% for the second quarter of 2020.

The adjusted efficiency ratio, a non-GAAP financial measure which excludes the impact of certain non-routine income and expenses from noninterest expense, was 41.7% for the third quarter of 2020, compared to 40.4% for the second quarter of 2020.
Cost of total deposits declined 12 basis points to 0.87% in the third quarter of 2020, compared to 0.99% in the second quarter of 2020.
Loans increased $65.5 million, or 11.9% on an annualized basis, to $2.26 billion at September 30, 2020, compared to June 30, 2020.

Deposits increased $31.0 million, or 5.5% on an annualized basis, to $2.27 billion at September 30, 2020, compared to June 30, 2020.
Annualized net loan charge-offs (recoveries) as a percent of average loans were 0.00% for the third quarter of 2020, compared to (0.01)% for the second quarter of 2020.

A loan loss provision of $3.8 million was recorded for the third quarter of 2020, primarily due to increased allocations for economic factors associated with the COVID-19 pandemic. The allowance for loan losses to total loans was 1.39% at September 30, 2020, compared to 1.26% at June 30, 2020. The allowance for loan losses to total loans, excluding $181.6 million of Paycheck Protection Program (PPP) loans, was 1.51% at September 30, 2020, compared to 1.37% at June 30, 2020.

75 loan modifications totaling $113.7 million, or 38.8% of total loan modifications, returned to regular payment status during the third quarter of 2020. Loan modification balances as a percent of totals loans, excluding PPP loans, decreased from 14.6% at the end of the second quarter of 2020 to 9.2% at the end of the third quarter of 2020.

Year-Over-Year Highlights

Diluted earnings per common share for the third quarter of 2020 were $0.25, compared to $0.27 for the third quarter of 2019.

Cost of total deposits declined 55 basis points to 0.87% in the third quarter of 2020, compared to 1.42% in the third quarter of 2019.

Page 1 of 17

Tangible book value per share, a non-GAAP financial measure, increased 13.0%, or $1.05, to $9.13 at September 30, 2020, compared to $8.08 at September 30, 2019.

Gross loans increased $413.0 million at September 30, 2020, or 22.4%, compared to September 30, 2019. Year-over-year loan growth was $231.4 million, or 12.5%, excluding $181.6 million of PPP loans.

Deposits increased $470.8 million at September 30, 2020, or 26.1%, compared to September 30, 2019. Year-over-year growth consisted of $284.1 million in organic deposits, excluding an estimated $30.0 million in growth attributable to remaining PPP loan funds.

The ratio of nonperforming assets to total assets was 0.02% at September 30, 2020, compared to 0.04% at September 30, 2019.

Year-To-Date Highlights

Diluted earnings per common share for the nine months ended September 30, 2020 were $0.76, compared to $0.76 for the nine months ended September 30, 2019.

Year-to-date pre-provision net revenue, a non-GAAP financial measure, was $38.4 million for the nine months ended September 30, 2020, an increase of 19.8%, compared to $32.1 million for the nine months ended September 30, 2019. Year-to-date annualized pre-provision net revenue return on average assets, a non-GAAP financial measure, was 2.01% for the nine months ended September 30, 2020, compared to 2.06% for the nine months ended September 30, 2019.

The adjusted efficiency ratio, a non-GAAP financial measure which excludes the impact of certain non-routine income and expenses from noninterest expense, was 42.0% for the nine months ended September 30, 2020, compared to 42.9% for the nine months ended September 30, 2019.

Year-to-date annualized loan growth for 2020, excluding PPP loans, was 11.6% as of September 30, 2020.

Year-to-date annualized organic deposit growth for 2020, excluding brokered deposits and remaining PPP loan funds, was 21.1% as of September 30, 2020.

Recent Developments

The outbreak of the novel coronavirus, or COVID-19, which was declared a pandemic by the World Health Organization on March 11, 2020, has continued to create uncertainty and extraordinary change for the Company, its clients, its communities and the country as a whole. In response to this pandemic, the Company rapidly deployed its business continuity plan and continues to take steps to protect the health and safety of its employees and clients. During the third quarter of 2020, the Company began returning employees to the office pursuant to new health and safety procedures, including increasing physical space between employees, using face coverings, alternating schedules for employees in the workspace and requiring employees with COVID-19 symptoms or exposure to quarantine away from the office. Given the fluidity of the situation, management cannot estimate the duration and full impact of the COVID-19 pandemic on the economy, financial markets and the Company's financial condition and results of operations. At this point, management does not expect that the Company's financial results in future quarters will track with the Company's historical performance.

During the third quarter of 2020, the Company opened its newly constructed office complex in St. Louis Park, Minnesota. The Company relocated its headquarters from Bloomington, Minnesota and relocated its current branch location in St. Louis Park to the new office complex. Management expects that occupancy and equipment expense will increase in future periods related to the operations and depreciation of the building.

The Company participated in the Small Business Administration's (SBA) PPP, which stemmed from the Coronavirus Aid, Relief and Economic Security, or CARES, Act that was signed into law on March 27, 2020. As of September 30, 2020, PPP principal loan balances totaled $181.6 million, compared to $180.2 million at June 30, 2020. In the third quarter of 2020, the Company began to shift its efforts to principal forgiveness processing; however, there was no forgiveness granted to any borrowers during the third quarter of 2020.

The Company continues to monitor the loan portfolio, working with clients to provide relief when appropriate. The Company has developed programs for clients who are experiencing business and personal disruptions due to the COVID-19 pandemic by providing loan payment deferrals and interest-only modifications. In accordance with interagency regulatory guidance and the CARES Act, qualifying loans modified in response to the COVID-19 pandemic will not be considered troubled debt restructurings. New modification activity has been limited in the third quarter of 2020.

Page 2 of 17

The following table presents a rollforward of loan modification activity, by modification type, from June 30, 2020 to September 30, 2020:

Interest-Only

Payment Deferral

Total

Principal Balance - June 30, 2020

$

175,307

$

117,703

$

293,010

Modification Expired

(45,392)

(90,108)

(135,500)

Second Modification Granted

18,909

2,909

21,818

New Modifications

10,502

-

10,502

Net Principal Advances (Payments)

1,559

(8)

1,551

Principal Balance - September 30, 2020

$

160,885

$

30,496

$

191,381

The following table presents a summary of active loan modifications, by loan segment and modification type, at September 30, 2020:

Interest-Only

Payment Deferral

Total

Amount

# of Loans

Amount

# of Loans

Amount

# of Loans

Commercial

$

11,705

21

$

414

2

$

12,119

23

Construction and Land Development

-

-

-

-

-

-

Real Estate Mortgage:

1 - 4 Family Mortgage

5,589

10

-

-

5,589

10

Multifamily

42,273

6

-

-

42,273

6

CRE Owner Occupied

1,646

4

1,502

3

3,148

7

CRE Nonowner Occupied

99,672

35

28,580

6

128,252

41

Consumer and Other

-

-

-

-

-

-

Totals

$

160,885

76

$

30,496

11

$

191,381

87

Modifications have been granted on a case-by-case basis based on the specific needs and circumstances affecting each borrower. Interest-only modifications have been primarily granted for three to six month periods, but range up to twelve months. Payment deferral modifications have been granted for three to six month periods. The Company has 52 modified loans totaling $99.8 million set to expire in October 2020. As of October 22, 2020, based on lender and client surveys, the Company estimates that $73.6 million will return to regular payment status, bringing loan modification balances as a percent of total loans, excluding PPP loans, to 5.6%.

Page 3 of 17

Key Financial Measures

As of and for the Three Months Ended

As of and for the Nine Months Ended

September 30,

June 30,

September 30,

September 30,

September 30,

2020

2020

2019

2020

2019

Per Common Share Data

Basic Earnings Per Share

$

0.25

$

0.26

$

0.27

$

0.77

$

0.77

Diluted Earnings Per Share

0.25

0.26

0.27

0.76

0.76

Book Value Per Share

9.25

8.92

8.20

9.25

8.20

Tangible Book Value Per Share (1)

9.13

8.80

8.08

9.13

8.08

Basic Weighted Average Shares Outstanding

28,683,855

28,676,441

28,820,144

28,717,142

29,535,589

Diluted Weighted Average Shares Outstanding

29,174,601

29,165,157

29,497,961

29,300,763

30,181,556

Shares Outstanding at Period End

28,710,775

28,837,560

28,781,162

28,710,775

28,781,162

Selected Performance Ratios

Return on Average Assets (Annualized)

1.05

%

1.17

%

1.43

%

1.16

%

1.46

%

Pre-Provision Net Revenue Return on Average Assets (Annualized) (1)

1.94

2.00

2.08

2.01

2.06

Return on Average Common Equity (Annualized)

10.84

11.98

13.31

11.57

13.27

Return on Average Tangible Common Equity (Annualized) (1)

10.98

12.14

13.52

11.73

13.49

Yield on Interest Earning Assets

4.30

4.45

4.98

4.53

5.01

Yield on Total Loans, Gross

4.73

4.85

5.32

4.91

5.31

Cost of Interest Bearing Liabilities

1.50

1.58

2.04

1.63

2.06

Cost of Total Deposits

0.87

0.99

1.42

1.03

1.44

Net Interest Margin (2)

3.28

3.38

3.56

3.41

3.57

Efficiency Ratio (1)

42.3

48.6

45.6

45.1

46.6

Adjusted Efficiency Ratio (1)

41.7

40.4

42.9

42.0

42.9

Noninterest Expense to Average Assets (Annualized)

1.42

1.64

1.66

1.58

1.70

Adjusted Noninterest Expense to Average Assets (Annualized) (1)

1.40

1.37

1.56

1.47

1.56

Loan to Deposit Ratio

99.4

97.8

102.4

Core Deposits to Total Deposits

77.1

75.7

79.9

Tangible Common Equity to Tangible Assets (1)

9.46

9.23

10.43

Capital Ratios (Bank Only) (3)

Tier 1 Leverage Ratio

11.24

%

11.36

%

10.88

%

Tier 1 Risk-based Capital Ratio

12.60

12.96

11.61

Total Risk-based Capital Ratio

13.85

14.21

12.44

Capital Ratios (Consolidated) (3)

Tier 1 Leverage Ratio

9.83

%

9.94

%

10.53

%

Tier 1 Risk-based Capital Ratio

11.03

11.39

11.26

Total Risk-based Capital Ratio

15.45

15.99

13.31

(1) Represents a non-GAAP financial measure. See 'Non-GAAP FinancialMeasures' for further details.
(2) Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of 21%.
(3) Preliminary data. Current period subject to change prior to filings with applicable regulatory agencies.

Page 4 of 17

Selected Financial Data

September 30,

June 30,

March 31,

December 31,

September 30,

(dollars in thousands)

2020

2020

2020

2019

2019

Selected Balance Sheet Data

Total Assets

$

2,774,564

$

2,754,463

$

2,418,730

$

2,268,830

$

2,232,339

Total Loans, Gross

2,259,228

2,193,778

2,002,817

1,912,038

1,846,218

Allowance for Loan Losses

31,381

27,633

24,585

22,526

22,124

Goodwill and Other Intangibles

3,344

3,391

3,439

3,487

3,535

Deposits

2,273,044

2,242,051

1,900,127

1,823,310

1,802,236

Tangible Common Equity (1)

262,088

253,799

244,704

241,307

232,524

Total Shareholders' Equity

265,432

257,190

248,143

244,794

236,059

Average Total Assets - Quarter-to-Date

2,711,755

2,622,272

2,317,040

2,221,370

2,168,909

Average Common Equity - Quarter-to-Date

263,195

255,109

250,800

240,188

232,590

(1)Represents a non-GAAP financial measure. See 'Non-GAAP FinancialMeasures' for further details.

For the Three Months Ended

For the Nine Months Ended

September 30,

June 30,

September 30,

September 30,

September 30,

(dollars in thousands)

2020

2020

2019

2020

2019

Selected Income Statement Data

Interest Income

$

28,493

$

28,166

$

26,572

$

84,127

$

76,359

Interest Expense

6,814

6,824

7,637

21,004

22,155

Net Interest Income

21,679

21,342

18,935

63,123

54,204

Provision for Loan Losses

3,750

3,000

900

8,850

2,100

Net Interest Income after Provision for Loan Losses

17,929

18,342

18,035

54,273

52,104

Noninterest Income

1,157

1,977

946

4,853

2,714

Noninterest Expense

9,672

10,711

9,084

30,129

26,443

Income Before Income Taxes

9,414

9,608

9,897

28,997

28,375

Provision for Income Taxes

2,240

2,010

2,092

6,782

5,543

Net Income

$

7,174

$

7,598

$

7,805

$

22,215

$

22,832

Income Statement

Net Interest Income

Net interest income was $21.7 million for the third quarter of 2020, an increase of $337,000, or 1.6%, from $21.3 million in the second quarter of 2020, and an increase of $2.7 million, or 14.5%, from $18.9 million in the third quarter of 2019. The linked-quarter increase in net interest income was primarily due to growth in average interest earning assets and lower rates paid on deposits, offset partially by lower rates on interest earning assets. The year-over-year increase in net interest income was largely attributed to growth in average interest earning assets, which increased by $521.0 million, or 24.4%, to $2.66 billion for the third quarter of 2020, from $2.13 billion for the third quarter of 2019. This increase in average interest earning assets was primarily due to continued organic growth in the loan portfolio and most recently, the funding of PPP loans.

Net interest margin (on a fully tax-equivalent basis) for the third quarter of 2020 was 3.28%, a 10 basis point decrease from 3.38% in the second quarter of 2020, and a 28 basis point decrease from 3.56% in the third quarter of 2019.

While the Company is encouraged by the continued reduction in the cost of interest bearing liabilities during the third quarter of 2020, the linked-quarter decrease in net interest margin was primarily attributed to the historically low and flat yield curve weighing on earning asset yields. Furthermore, the Company's participation in the PPP generated strong loan origination volume during the second quarter of 2020; however, the interest rate of 1.00% earned on these loans is significantly lower than the aggregate loan yield, thus impacting the net interest margin during the quarter. It is worth noting that the core net interest margin, excluding PPP loans and corresponding deposit balances, was 3.33% for the third quarter of 2020. The year-over-year decline in net interest margin largely followed the same themes as the quarter. Despite a significant reduction in interest bearing deposit costs over the year, the historically low interest rate environment coupled with a more liquid balance sheet mix pressured earning asset yields lower and ultimately continued to compress the net interest margin.

Interest income was $28.5 million for the third quarter of 2020, an increase of $327,000, or 1.2%, from $28.2 million in the second quarter of 2020, and an increase of $1.9 million, or 7.2%, from $26.6 million in the third quarter of 2019. The yield on interest earning assets (on a fully tax-equivalent basis) was 4.30% in the third quarter of 2020, compared to 4.45% in the second quarter of 2020, and 4.98% in the third quarter of 2019. The linked-quarter decrease in the yield on interest earning assets was due primarily to lower market

Page 5 of 17

rates resulting in lower loan and security yields. The year-over-year decrease in the yield on interest earning assets was due to the falling interest rate environment resulting in lower loan and security yields, the impact of PPP loans originated at a meaningfully lower rate than the aggregate loan portfolio yield, and an increase in cash balances held by the Company due to the uncertain impacts of the COVID-19 pandemic.

Loan interest income and loan fees remain the primary contributing factors to the changes in yield on interest earning assets. The aggregate loan yield, excluding PPP loans, decreased to 4.93% in the third quarter of 2020, which was 8 basis points lower than 5.01% in the second quarter of 2020, and 39 basis points lower than 5.32% in the third quarter of 2019. While loan fees have maintained a stable contribution to the aggregate loan yield, the historically low and flat yield curve has resulted in a declining core yield on loans in comparison to both prior periods.

A summary of interest and fees recognized on loans, excluding PPP loans, for the periods indicated is as follows:

Three Months Ended

September 30, 2020

June 30, 2020

March 31, 2020

December 31, 2019

September 30, 2019

Interest

4.69

%

4.76

%

4.90

%

5.00

%

5.07

%

Fees

0.24

0.25

0.27

0.33

0.25

Yield on Loans, Excluding PPP Loans

4.93

%

5.01

%

5.17

%

5.33

%

5.32

%

Interest expense was $6.8 million for the third quarter of 2020, a decrease of $10,000, or 0.1%, from $6.8 million in the second quarter of 2020, and a decrease of $823,000, or 10.8%, from $7.6 million in the third quarter of 2019. The cost of interest bearing liabilities declined 8 basis points on a linked-quarter basis from 1.58% in the second quarter of 2020 to 1.50% in the third quarter of 2020, primarily due to lower rates paid on deposits. On a year-over-year basis, the cost of interest bearing liabilities decreased 54 basis points from 2.04% in the third quarter of 2019 to 1.50% in the third quarter of 2020.

Interest expense on deposits was $4.8 million for the third quarter of 2020, a decrease of $330,000, or 6.4%, from $5.2 million in the second quarter of 2020, and a decrease of $1.4 million, or 22.0%, from $6.2 million in the third quarter of 2019. The average cost of total deposits declined 12 basis points on a linked-quarter basis from 0.99% in the second quarter of 2020, and declined 55 basis points on a year-over-year basis from 1.42% in the third quarter of 2019, to 0.87% in the third quarter of 2020, primarily due to deposit rate cuts consistent with a lower rate environment and the repricing of time deposits.

Given strong deposit growth and ample time deposit maturities over the next 12 months, the Company anticipates meaningful deposit repricing opportunities in future quarters.

Page 6 of 17

A summary of the Company's average balances, interest yields and rates, and net interest margin for the three months ended September 30, 2020, June 30, 2020, and September 30, 2019 is as follows:

For the Three Months Ended

September 30, 2020

June 30, 2020

September 30, 2019

Average

Interest

Yield/

Average

Interest

Yield/

Average

Interest

Yield/

Balance

& Fees

Rate

Balance

& Fees

Rate

Balance

& Fees

Rate

(dollars in thousands)

Interest Earning Assets:

Cash Investments

$

101,787

$

42

0.16

%

$

109,073

$

37

0.14

%

$

73,970

$

346

1.86

%

Investment Securities:

Taxable Investment Securities

256,808

1,389

2.15

203,559

1,304

2.58

151,319

1,095

2.87

Tax-Exempt Investment Securities (1)

82,579

900

4.33

91,793

996

4.37

95,575

1,031

4.28

Total Investment Securities

339,387

2,289

2.68

295,352

2,300

3.13

246,894

2,126

3.42

Paycheck Protection Program Loans (2)

181,397

1,173

2.57

139,235

873

2.52

-

-

-

Loans (1)(2)

2,025,410

25,081

4.93

2,013,163

25,070

5.01

1,805,920

24,220

5.32

Total Loans

2,206,807

26,254

4.73

2,152,398

25,943

4.85

1,805,920

24,220

5.32

Federal Home Loan Bank Stock

7,901

127

6.38

10,469

125

4.81

8,111

96

4.72

Total Interest Earning Assets

2,655,882

28,712

4.30

%

2,567,292

28,405

4.45

%

2,134,895

26,788

4.98

%

Noninterest Earning Assets

55,873

54,980

34,014

Total Assets

$

2,711,755

$

2,622,272

$

2,168,909

Interest Bearing Liabilities:

Deposits:

Interest Bearing Transaction Deposits

306,162

400

0.52

%

272,565

377

0.56

%

250,667

511

0.81

%

Savings and Money Market Deposits

501,246

1,106

0.88

521,313

1,327

1.02

453,340

2,080

1.82

Time Deposits

369,975

1,899

2.04

388,357

2,122

2.20

359,329

2,229

2.46

Brokered Deposits

419,744

1,435

1.36

319,711

1,344

1.69

242,600

1,389

2.27

Total Interest Bearing Deposits

1,597,127

4,840

1.21

1,501,946

5,170

1.38

1,305,936

6,209

1.89

Federal Funds Purchased

152

-

0.33

9

-

0.72

-

-

-

Notes Payable

11,500

108

3.74

12,000

111

3.72

13,500

127

3.73

FHLB Advances

129,457

748

2.30

193,819

1,064

2.21

143,690

908

2.51

Subordinated Debentures

73,649

1,118

6.04

31,228

479

6.17

24,699

393

6.31

Total Interest Bearing Liabilities

1,811,885

6,814

1.50

%

1,739,002

6,824

1.58

%

1,487,825

7,637

2.04

%

Noninterest Bearing Liabilities:

Noninterest Bearing Transaction Deposits

615,214

603,456

434,021

Other Noninterest Bearing Liabilities

21,461

24,705

14,473

Total Noninterest Bearing Liabilities

636,675

628,161

448,494

Shareholders' Equity

263,195

255,109

232,590

Total Liabilities and Shareholders' Equity

$

2,711,755

$

2,622,272

$

2,168,909

Net Interest Income / Interest Rate Spread

21,898

2.80

%

21,581

2.87

%

19,151

2.94

%

Net Interest Margin (3)

3.28

%

3.38

%

3.56

%

Taxable Equivalent Adjustment:

Tax-Exempt Investment Securities

(219)

(239)

(216)

Net Interest Income

$

21,679

$

21,342

$

18,935

(1) Interest income and average rates for tax-exempt investment securities and loans are presented on a tax-equivalent basis, assuming a statutory federal income tax rate of 21%.
(2) Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.

Page 7 of 17

(3) Net interest margin includes the tax equivalent adjustment and represents the annualized results of: (i) the difference between interest income on interest earning assets and the interest expense on interest bearing liabilities, divided by (ii) average interest earning assets for the period.

Provision for Loan Losses

The provision for loan losses was $3.8 million for the third quarter of 2020, an increase of $750,000 from $3.0 million for the second quarter of 2020, and an increase of $2.9 million from $900,000 for the third quarter of 2019. The allowance for loan losses to total loans was 1.39% at September 30, 2020, compared to 1.26% at June 30, 2020, and 1.20% at September 30, 2019. The allowance for loan losses to total loans, excluding $181.6 million of PPP loans, was 1.51% at September 30, 2020. The continued reserve build in the third quarter of 2020 was primarily attributable to growth of the loan portfolio, economic uncertainties and evolving risks driven by the impact of the COVID-19 pandemic.

As an emerging growth company, the Company is not subject to Accounting Standards Update No. 2016-13 'Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments,' or CECL, until January 1, 2023.

The following table presents the activity in the Company's allowance for loan losses for the periods indicated:

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

September 30,

September 30,

(dollars in thousands)

2020

2020

2019

2020

2019

Balance at Beginning of Period

$

27,633

$

24,585

$

21,362

$

22,526

$

20,031

Provision for Loan Losses

3,750

3,000

900

8,850

2,100

Charge-offs

(6)

(1)

(144)

(54)

(183)

Recoveries

4

49

6

59

176

Balance at End of Period

$

31,381

$

27,633

$

22,124

$

31,381

$

22,124

Noninterest Income

Noninterest income was $1.2 million for the third quarter of 2020, a decrease of $820,000 from $2.0 million for the second quarter of 2020, and an increase of $211,000 from $946,000 for the third quarter of 2019. The linked-quarter decrease was primarily due to decreased gains on sales of securities, offset partially by increased letter of credit fees and customer service fees. The year-over-year increase was primarily due to increased letter of credit fees.

The following table presents the major components of noninterest income for the periods indicated:

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

September 30,

September 30,

(dollars in thousands)

2020

2020

2019

2020

2019

Noninterest Income:

Customer Service Fees

$

200

$

135

$

184

$

575

$

564

Net Gain on Sales of Securities

109

1,361

58

1,473

516

Net Gain on Sales of Foreclosed Assets

-

-

69

-

69

Letter of Credit Fees

487

265

331

1,026

790

Debit Card Interchange Fees

119

99

116

310

313

Swap Fees

-

-

-

907

-

Other Income

242

117

188

562

462

Totals

$

1,157

$

1,977

$

946

$

4,853

$

2,714

Noninterest Expense

Noninterest expense was $9.7 million for the third quarter of 2020, a decrease of $1.0 million from $10.7 million for the second quarter of 2020, and an increase of $588,000 from $9.1 million for the third quarter of 2019. The linked-quarter decrease was primarily due to $1.4 million of FHLB advance prepayment fees incurred in the second quarter of 2020, as well as lower amortization of tax credit investments. The decrease was partially offset by increased salaries and employee benefits and occupancy and equipment expenses related to the new corporate headquarters. The year-over-year increase was attributed to increased salaries and employee benefits and FDIC insurance assessment, offset partially by decreased marketing and advertising and amortization of tax credit investments.

Page 8 of 17

The following table presents the major components of noninterest expense for the periods indicated:

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

September 30,

September 30,

(dollars in thousands)

2020

2020

2019

2020

2019

Noninterest Expense:

Salaries and Employee Benefits

$

6,550

$

6,348

$

5,915

$

19,352

$

15,841

Occupancy and Equipment

894

672

761

2,279

2,202

FDIC Insurance Assessment

160

168

-

518

570

Data Processing

267

238

182

734

486

Professional and Consulting Fees

492

423

414

1,400

1,253

Information Technology and Telecommunications

385

326

233

977

677

Marketing and Advertising

94

85

339

645

1,208

Intangible Asset Amortization

48

47

48

143

143

Amortization of Tax Credit Investments

145

362

530

592

2,097

FHLB Advance Prepayment Fees

-

1,430

-

1,430

-

Other Expense

637

612

662

2,059

1,966

Totals

$

9,672

$

10,711

$

9,084

$

30,129

$

26,443

The Company had 180 full-time equivalent employees at September 30, 2020, compared to 173 employees at June 30, 2020, and 158 employees at September 30, 2019. Despite the uncertainty surrounding the COVID-19 pandemic, the Company continues to attract strategic hires in lending, deposit gathering, technology and risk management roles. The efficiency ratio, a non-GAAP financial measure, was 42.3% for the third quarter of 2020, compared to 48.6% for the second quarter of 2020, and 45.6% for the third quarter of 2019. Excluding the impact of certain non-routine income and expenses, the adjusted efficiency ratio, a non-GAAP financial measure, was 41.7% for the third quarter of 2020, 40.4% for the second quarter of 2020 and 42.9% for the third quarter of 2019. The efficiencies of the Company's 'branch-light' model have been evident throughout the pandemic, and going forward, have positioned the Company well to continue making investments in technology as the industry adapts to evolving client behavior.

Income Taxes

The effective combined federal and state income tax rate for the third quarter of 2020 was 23.8%, an increase from 20.9% for the second quarter of 2020 and an increase from 21.1% for the third quarter of 2019. The effective combined federal and state income tax rate for the nine months ended September 30, 2020 was 23.4%.

Balance Sheet

Total assets at September 30, 2020 were $2.77 billion, a 0.7% increase from $2.75 billion at June 30, 2020, and a 24.3% increase from $2.23 billion at September 30, 2019. While the linked-quarter increase was nominal, restored organic loan growth and purchases of investment securities deployed excess liquidity build from the previous quarter. The year-over-year increase in total assets was primarily due to organic loan growth, PPP loan growth and purchases of investment securities.

Total gross loans at September 30, 2020 were $2.26 billion, an increase of $65.5 million, or 3.0%, over total gross loans of $2.19 billion at June 30, 2020, and an increase of $413.0 million, or 22.4%, over total gross loans of $1.85 billion at September 30, 2019. Year-to-date annualized loan growth, excluding $181.6 million of PPP loans, was 11.6% as of September 30, 2020.

The following table presents the dollar composition of the Company's loan portfolio, by category, at the dates indicated:

September 30, 2020

June 30, 2020

March 31, 2020

December 31, 2019

September 30, 2019

(dollars in thousands)

Commercial

$

287,254

$

302,536

$

299,425

$

276,035

$

291,723

Paycheck Protection Program

181,596

180,228

-

-

-

Construction and Land Development

175,882

191,768

183,350

196,776

216,054

Real Estate Mortgage:

1 - 4 Family Mortgage

286,089

289,456

272,590

260,611

254,782

Multifamily

585,814

522,491

536,380

515,014

456,257

CRE Owner Occupied

75,963

73,539

75,207

66,584

71,209

CRE Nonowner Occupied

660,058

627,651

631,541

592,545

551,992

Total Real Estate Mortgage Loans

1,607,924

1,513,137

1,515,718

1,434,754

1,334,240

Consumer and Other

6,572

6,109

4,324

4,473

4,201

Total Loans, Gross

2,259,228

2,193,778

2,002,817

1,912,038

1,846,218

Allowance for Loan Losses

(31,381)

(27,633)

(24,585)

(22,526)

(22,124)

Net Deferred Loan Fees

(10,367)

(10,287)

(5,336)

(5,512)

(5,788)

Total Loans, Net

$

2,217,480

$

2,155,858

$

1,972,896

$

1,884,000

$

1,818,306

Page 9 of 17

Total deposits at September 30, 2020 were $2.27 billion, an increase of $31.0 million, or 1.4%, over total deposits of $2.24 billion at June 30, 2020, and an increase of $470.8 million, or 26.1%, over total deposits of $1.80 billion at September 30, 2019. Deposit growth in the third quarter of 2020 was primarily due to an increase in noninterest bearing and interest bearing transaction deposits, offset partially by a decline in savings and money market and time deposits. The growth in noninterest bearing and interest bearing transaction deposits is a result of both successful new client acquisition initiatives and pandemic-related accumulation of liquidity by existing clients. Given the fluid environment, management believes deposits could experience fluctuations in future periods.

The following table presents the dollar composition of the Company's deposit portfolio, by category, at the dates indicated:

September 30, 2020

June 30, 2020

March 31, 2020

December 31, 2019

September 30, 2019

(dollars in thousands)

Noninterest Bearing Transaction Deposits

$

685,773

$

648,869

$

476,217

$

447,509

$

478,493

Interest Bearing Transaction Deposits

322,253

285,386

255,483

264,627

243,889

Savings and Money Market Deposits

498,397

516,543

514,113

516,785

470,518

Time Deposits

363,897

382,187

393,340

360,027

363,308

Brokered Deposits

402,724

409,066

260,974

234,362

246,028

Total Deposits

$

2,273,044

$

2,242,051

$

1,900,127

$

1,823,310

$

1,802,236

Total shareholders' equity at September 30, 2020 was $265.4 million, an increase of $8.2 million, or 3.2%, over total shareholders' equity of $257.2 million at June 30, 2020, and an increase of $29.4 million, or 12.4%, over total shareholders' equity of $236.1 million at September 30, 2019. The linked-quarter increase was due to net income retained and an increase in unrealized gains in the securities portfolio, partially offset by stock repurchases made under the Company's stock repurchase program. The year-over-year increase was due to net income retained, partially offset by stock repurchases made in the first and third quarters of 2020 under the Company's stock repurchase program.

Strong earnings and capital growth coupled with better asset quality visibility as loan modifications expired, supported management's decision to resume repurchases under the Company's stock buyback program late in the third quarter of 2020. The Company remains committed to maintaining strong capital levels while enhancing shareholder value as it strategically executes its stock buyback program in this fluid economic environment. During the third quarter of 2020, the Company repurchased 137,984 shares of its common stock. Shares were repurchased at a weighted average price of $9.39 for a total of $1.3 million.

Tangible book value per share, a non-GAAP financial measure, was $9.13 as of September 30, 2020, an increase of 3.7% from $8.80 as of June 30, 2020, and an increase of 13.0% from $8.08 as of September 30, 2019.

Asset Quality

The Company has not yet witnessed direct impacts of the COVID-19 pandemic in the Company's asset quality metrics; however, management believes that the economic uncertainty that exists may begin to negatively impact the portfolio in future quarters. Annualized net charge-offs (recoveries) as a percent of average loans for the third quarter of 2020 were 0.00%, compared to (0.01)% for the second quarter of 2020, and 0.03% for the third quarter of 2019. At September 30, 2020, the Company's nonperforming assets, which include nonaccrual loans, loans past due 90 days and still accruing, and foreclosed assets, were $433,000, or 0.02% of total assets, as compared to $602,000, or 0.02% of total assets at June 30, 2020, and $828,000 or 0.04% of total assets at September 30, 2019.

The Company has increased oversight and analysis of all segments within the loan portfolio in response to the COVID-19 pandemic, especially in vulnerable industries such as hospitality and restaurants, to proactively monitor evolving credit risk. With the change in economic conditions and the uncertain duration of the COVID-19 pandemic, the Company's portfolio is expected to be negatively impacted and management anticipates that delinquencies and charge-offs could rise in future periods. Loans that have potential weaknesses that warrant a watchlist risk rating at September 30, 2020, were $50.9 million, compared to $45.7 million at June 30, 2020. As the COVID-19 pandemic continues to evolve, the length and extent of the economic contraction may result in further watchlist or adverse classifications in the loan portfolio. Loans that warrant a substandard risk rating at September 30, 2020 were $16.1 million, compared to $3.7 million at June 30, 2020.

Page 10 of 17

The following table presents a summary of asset quality measurements at the dates indicated:

As of and for the Three Months Ended

September 30,

June 30

March 31

December 31,

September 30,

(dollars in thousands)

2020

2020

2020

2019

2019

Selected Asset Quality Data

Loans 30-89 Days Past Due

$

458

$

153

$

21

$

403

$

-

Loans 30-89 Days Past Due to Total Loans

0.02

%

0.01

%

0.00

%

0.02

%

0.00

%

Nonperforming Loans

$

433

$

602

$

606

$

461

$

828

Nonperforming Loans to Total Loans

0.02

%

0.03

%

0.03

%

0.02

%

0.04

%

Foreclosed Assets

$

-

$

-

$

-

$

-

$

-

Nonaccrual Loans to Total Loans

0.02

%

0.03

%

0.03

%

0.02

%

0.04

%

Nonaccrual Loans and Loans Past Due 90 Days and Still Accruing to Total Loans

0.02

0.03

0.03

0.02

0.04

Nonperforming Assets (1)

$

433

$

602

$

606

$

461

$

828

Nonperforming Assets to Total Assets (1)

0.02

%

0.02

%

0.03

%

0.02

%

0.04

%

Allowance for Loan Losses to Total Loans

1.39

1.26

1.23

1.18

1.20

Allowance for Loan Losses to Total Loans, Excluding PPP Loans

1.51

1.37

N/A

N/A

N/A

Allowance for Loans Losses to Nonperforming Loans

7,247.34

4,590.20

4,056.93

4,886.33

2,671.98

Net Loan Charge-Offs (Recoveries) (Annualized) to Average Loans

0.00

(0.01)

0.01

0.04

0.03

(1) Nonperforming assets are defined as nonaccrual loans plus loans 90 days past due plus foreclosed assets.

About the Company

Bridgewater Bancshares, Inc. is a financial holding company headquartered in St. Louis Park, Minnesota. The Company has two wholly owned subsidiaries, Bridgewater Bank, a Minnesota-chartered commercial bank founded in November 2005, and Bridgewater Risk Management, Inc., a captive insurance company founded in December 2016. Bridgewater Bank has two wholly owned subsidiaries, Bridgewater Investment Management, Inc. and BWB Holdings, LLC. Bridgewater Bank currently operates through 7 branches in Bloomington, Greenwood, Minneapolis (2), St. Louis Park, Orono, and St. Paul, all located within the Minneapolis-St. Paul-Bloomington metropolitan statistical area.

Investor Relations Contact:

Jerry Baack

Chief Executive Officer

[email protected]wbmn.com

952-893-6866

Use of Non-GAAP financial measures

In addition to the results presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP), the Company routinely supplements its evaluation with an analysis of certain non-GAAP financial measures. The Company believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors to help them understand the Company's operating performance and trends, and to facilitate comparisons with the performance of peers. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of non-GAAP disclosures used in this earnings release to the comparable GAAP measures are provided in the accompanying tables.

Forward-Looking Statements

This earnings release contains 'forward-looking statements' within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, identified by words such as 'may', 'might', 'should', 'could', 'predict', 'potential', 'believe', 'expect', 'continue', 'will', 'anticipate', 'seek', 'estimate', 'intend', 'plan', 'projection', 'would', 'annualized', 'target' and 'outlook', or the negative version of those words or other comparable words of a future or forward-looking nature.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from

Page 11 of 17

those indicated in the forward-looking statements include, among others, the following: the negative effects of the COVID-19 pandemic, including its effects on the economic environment, our clients and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with the pandemic; loan concentrations in our portfolio; the overall health of the local and national real estate market; our ability to successfully manage credit risk; business and economic conditions generally and in the financial services industry, nationally and within our market area; our ability to maintain an adequate level of allowance for loan losses; new or revised accounting standards, including as a result of the future implementation of the Current Expected Credit Loss standard; the concentration of large loans to certain borrowers; the concentration of large deposits from certain clients; our ability to successfully manage liquidity risk; our dependence on non-core funding sources and our cost of funds; our ability to raise additional capital to implement our business plan; our ability to implement our growth strategy and manage costs effectively; developments and uncertainty related to the future use and availability of some reference rates, such as the London Interbank Offered Rate, as well as other alternative reference rates; the composition of our senior leadership team and our ability to attract and retain key personnel; the occurrence of fraudulent activity, breaches or failures of our information security controls or cybersecurity-related incidents; interruptions involving our information technology and telecommunications systems or third-party servicers; competition in the financial services industry; the effectiveness of our risk management framework; the commencement and outcome of litigation and other legal proceedings and regulatory actions against us; the impact of recent and future legislative and regulatory changes; interest rate risk; fluctuations in the values of the securities held in our securities portfolio; the imposition of tariffs or other governmental policies impacting the value of products produced by our commercial borrowers; severe weather, natural disasters, wide spread disease or pandemics (including the COVID-19 pandemic), acts of war or terrorism or other adverse external events; potential impairment to the goodwill we recorded in connection with our past acquisition; and any other risks described in the 'Risk Factors' sections of reports filed by the Company with the Securities and Exchange Commission.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Page 12 of 17

Bridgewater Bancshares, Inc. and Subsidiaries
Consolidated Balance Sheets

(dollars in thousands, except share data)

September 30,

December 31,

September 30,

2020

2019

2019

(Unaudited)

(Unaudited)

ASSETS

Cash and Cash Equivalents

$

91,510

$

31,935

$

89,619

Bank-Owned Certificates of Deposit

2,862

2,654

2,654

Securities Available for Sale, at Fair Value

373,955

289,877

263,803

Loans, Net of Allowance for Loan Losses of $31,381 at September 30, 2020 (unaudited), $22,526 at December 31, 2019 and $22,124 at September 30, 2019 (unaudited)

2,217,480

1,884,000

1,818,306

Federal Home Loan Bank (FHLB) Stock, at Cost

7,817

7,824

8,024

Premises and Equipment, Net

48,885

27,628

25,764

Accrued Interest

9,647

6,775

6,519

Goodwill

2,626

2,626

2,626

Other Intangible Assets, Net

718

861

909

Other Assets

19,064

14,650

14,115

Total Assets

$

2,774,564

$

2,268,830

$

2,232,339

LIABILITIES AND EQUITY

LIABILITIES

Deposits:

Noninterest Bearing

$

685,773

$

447,509

$

478,493

Interest Bearing

1,587,271

1,375,801

1,323,743

Total Deposits

2,273,044

1,823,310

1,802,236

Notes Payable

11,500

13,000

13,500

FHLB Advances

127,500

136,500

141,500

Subordinated Debentures, Net of Issuance Costs

73,665

24,733

24,707

Accrued Interest Payable

2,082

1,982

1,763

Other Liabilities

21,341

24,511

12,574

Total Liabilities

2,509,132

2,024,036

1,996,280

SHAREHOLDERS' EQUITY

Preferred Stock- $0.01 par value

Authorized 10,000,000; None Issued and Outstanding at September 30, 2020 (unaudited), December 31, 2019 and September 30, 2019 (unaudited)

-

-

-

Common Stock- $0.01 par value

Common Stock - Authorized 75,000,000; Issued and Outstanding 28,710,775 at September 30, 2020 (unaudited), 28,973,572 at December 31, 2019 and 28,781,162 at September 30, 2019 (unaudited)

287

290

288

Additional Paid-In Capital

110,010

112,093

111,670

Retained Earnings

149,852

127,637

119,066

Accumulated Other Comprehensive Income

5,283

4,774

5,035

Total Shareholders' Equity

265,432

244,794

236,059

Total Liabilities and Equity

$

2,774,564

$

2,268,830

$

2,232,339

Page 13 of 17

Bridgewater Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income

(dollars in thousands, except per share data)

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

September 30,

September 30,

2020

2020

2019

2020

2019

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

INTEREST INCOME

Loans, Including Fees

$

26,224

$

25,913

$

24,220

$

77,250

$

69,720

Investment Securities

2,100

2,091

1,910

6,387

5,739

Other

169

162

442

490

900

Total Interest Income

28,493

28,166

26,572

84,127

76,359

INTEREST EXPENSE

Deposits

4,840

5,170

6,209

15,734

17,932

Notes Payable

108

111

127

334

378

FHLB Advances

748

1,064

908

2,839

2,510

Subordinated Debentures

1,118

479

393

1,990

1,163

Federal Funds Purchased

-

-

-

107

172

Total Interest Expense

6,814

6,824

7,637

21,004

22,155

NET INTEREST INCOME

21,679

21,342

18,935

63,123

54,204

Provision for Loan Losses

3,750

3,000

900

8,850

2,100

NET INTEREST INCOME AFTER

PROVISION FOR LOAN LOSSES

17,929

18,342

18,035

54,273

52,104

NONINTEREST INCOME

Customer Service Fees

200

135

184

575

564

Net Gain on Sales of Available for Sale Securities

109

1,361

58

1,473

516

Net Gain on Sales of Foreclosed Assets

-

-

69

-

69

Other Income

848

481

635

2,805

1,565

Total Noninterest Income

1,157

1,977

946

4,853

2,714

NONINTEREST EXPENSE

Salaries and Employee Benefits

6,550

6,348

5,915

19,352

15,841

Occupancy and Equipment

894

672

761

2,279

2,202

Other Expense

2,228

3,691

2,408

8,498

8,400

Total Noninterest Expense

9,672

10,711

9,084

30,129

26,443

INCOME BEFORE INCOME TAXES

9,414

9,608

9,897

28,997

28,375

Provision for Income Taxes

2,240

2,010

2,092

6,782

5,543

NET INCOME

$

7,174

$

7,598

$

7,805

$

22,215

$

22,832

EARNINGS PER SHARE

Basic

$

0.25

$

0.26

$

0.27

$

0.77

$

0.77

Diluted

0.25

0.26

0.27

0.76

0.76

Dividends Paid Per Share

-

-

-

-

-

Page 14 of 17

Non-GAAP Financial Measures

(dollars in thousands) (unaudited)

For the Three Months Ended

For the Nine Months Ended

September 30,

June 30,

September 30,

September 30,

September 30,

2020

2020

2019

2020

2019

Efficiency Ratio

Noninterest Expense

$

9,672

$

10,711

$

9,084

$

30,129

$

26,443

Less: Amortization of Intangible Assets

(48)

(47)

(48)

(143)

(143)

Adjusted Noninterest Expense

$

9,624

$

10,664

$

9,036

$

29,986

$

26,300

Net Interest Income

21,679

21,342

18,935

63,123

54,204

Noninterest Income

1,157

1,977

946

4,853

2,714

Less: Gain on Sales of Securities

(109)

(1,361)

(58)

(1,473)

(516)

Adjusted Operating Revenue

$

22,727

$

21,958

$

19,823

$

66,503

$

56,402

Efficiency Ratio

42.3

%

48.6

%

45.6

%

45.1

%

46.6

%

Adjusted Efficiency Ratio

Noninterest Expense

$

9,672

$

10,711

$

9,084

$

30,129

$

26,443

Less: Amortization of Tax Credit Investments

(145)

(362)

(530)

(592)

(2,097)

Less: FHLB Advance Prepayment Fees

-

(1,430)

-

(1,430)

-

Less: Amortization of Intangible Assets

(48)

(47)

(48)

(143)

(143)

Adjusted Noninterest Expense

$

9,479

$

8,872

$

8,506

$

27,964

$

24,203

Net Interest Income

21,679

21,342

18,935

63,123

54,204

Noninterest Income

1,157

1,977

946

4,853

2,714

Less: Gain on Sales of Securities

(109)

(1,361)

(58)

(1,473)

(516)

Adjusted Operating Revenue

$

22,727

$

21,958

$

19,823

$

66,503

$

56,402

Adjusted Efficiency Ratio

41.7

%

40.4

%

42.9

%

42.0

%

42.9

%

For the Three Months Ended

For the Nine Months Ended

September 30,

June 30,

September 30,

September 30,

September 30,

2020

2020

2019

2020

2019

Pre-Provision Net Revenue

Noninterest Income

$

1,157

$

1,977

$

946

$

4,853

$

2,714

Less: Gain on sales of Securities

(109)

(1,361)

(58)

(1,473)

(516)

Total Operating Noninterest Income

1,048

616

888

3,380

2,198

Plus: Net Interest income

21,679

21,342

18,935

63,123

54,204

Net Operating Revenue

$

22,727

$

21,958

$

19,823

$

66,503

$

56,402

Noninterest Expense

$

9,672

$

10,711

$

9,084

$

30,129

$

26,443

Less: Amortization of Tax Credit Investments

(145)

(362)

(530)

(592)

(2,097)

Less: FHLB Advance Prepayment Fees

-

(1,430)

-

(1,430)

-

Total Operating Noninterest Expense

$

9,527

$

8,919

$

8,554

$

28,107

$

24,346

Pre-Provision Net Revenue

$

13,200

$

13,039

$

11,269

$

38,396

$

32,056

Plus:

Non-Operating Revenue Adjustments

109

1,361

58

1,473

516

Less:

Provision for Loan Losses

3,750

3,000

900

8,850

2,100

Non-Operating Expense Adjustments

145

1,792

530

2,022

2,097

Provision for Income Taxes

2,240

2,010

2,092

6,782

5,543

Net Income

$

7,174

$

7,598

$

7,805

$

22,215

$

22,832

Average Assets

$

2,711,755

$

2,622,272

$

2,168,909

$

2,550,945

$

2,083,837

Pre-Provision Net Revenue Return on Average Assets

1.94

%

2.00

%

2.08

%

2.01

%

2.06

%

Page 15 of 17

As of and for the Three Months Ended

As of and for the Nine Months Ended

September 30,

June 30,

September 30,

September 30,

September 30,

2020

2020

2019

2020

2019

Tangible Common Equity and Tangible Common Equity/Tangible Assets

Common Equity

$

265,432

$

257,190

$

236,059

Less: Intangible Assets

(3,344)

(3,391)

(3,535)

Tangible Common Equity

$

262,088

$

253,799

$

232,524

Total Assets

$

2,774,564

$

2,754,463

$

2,232,339

Less: Intangible Assets

(3,344)

(3,391)

(3,535)

Tangible Assets

$

2,771,220

$

2,751,072

$

2,228,804

Tangible Common Equity/Tangible Assets

9.46

%

9.23

%

10.43

%

Tangible Book Value Per Share

Book Value Per Common Share

$

9.25

$

8.92

$

8.20

Less: Effects of Intangible Assets

(0.12)

(0.12)

(0.12)

Tangible Book Value Per Common Share

$

9.13

$

8.80

$

8.08

Average Tangible Common Equity

Average Common Equity

$

263,195

$

255,109

$

232,590

$

256,393

$

229,961

Less: Effects of Average Intangible Assets

(3,371)

(3,419)

(3,558)

(3,418)

(3,605)

Average Tangible Common Equity

$

259,824

$

251,690

$

229,032

$

252,975

$

226,356

Page 16 of 17

Bridgewater Bancshares, Inc. and Subsidiaries

Analysis of Average Balances, Yields and Rates (year-to-date)

(dollars in thousands, except per share data) (Unaudited)

For the Nine Months Ended

September 30, 2020

September 30, 2019

Average

Interest

Yield/

Average

Interest

Yield/

Balance

& Fees

Rate

Balance

& Fees

Rate

(dollars in thousands)

Interest Earning Assets:

Cash Investments

$

80,186

$

138

0.23

%

$

46,158

$

604

1.75

%

Investment Securities:

Taxable Investment Securities

216,332

4,080

2.52

143,583

3,126

2.91

Tax-Exempt Investment Securities (1)

89,674

2,920

4.35

103,032

3,307

4.29

Total Investment Securities

306,006

7,000

3.06

246,615

6,433

3.49

Paycheck Protection Program Loans (2)

107,541

2,046

2.54

-

-

-

Loans (1)(2)

1,997,553

75,301

5.04

1,756,855

69,720

5.31

Total Loans

2,105,094

77,347

4.91

1,756,855

69,720

5.31

Federal Home Loan Bank Stock

9,541

352

4.93

7,906

296

5.00

Total Interest Earning Assets

2,500,827

84,837

4.53

%

2,057,534

77,053

5.01

%

Noninterest Earning Assets

50,118

26,303

Total Assets

$

2,550,945

$

2,083,837

Interest Bearing Liabilities:

Deposits:

Interest Bearing Transaction Deposits

275,303

1,207

0.58

%

211,784

1,130

0.71

%

Savings and Money Market Deposits

518,648

4,338

1.12

433,430

5,784

1.78

Time Deposits

378,133

6,199

2.19

347,731

6,230

2.40

Brokered Deposits

319,615

3,990

1.67

266,976

4,788

2.40

Total Interest Bearing Deposits

1,491,699

15,734

1.41

1,259,921

17,932

1.90

Federal Funds Purchased

8,302

107

1.73

8,923

172

2.58

Notes Payable

12,000

334

3.72

14,000

378

3.61

FHLB Advances

165,088

2,839

2.30

133,097

2,510

2.52

Subordinated Debentures

43,318

1,990

6.14

24,673

1,163

6.30

Total Interest Bearing Liabilities

1,720,407

21,004

1.63

%

1,440,614

22,155

2.06

%

Noninterest Bearing Liabilities:

Noninterest Bearing Transaction Deposits

554,513

401,973

Other Noninterest Bearing Liabilities

19,632

11,289

Total Noninterest Bearing Liabilities

574,145

413,262

Shareholders' Equity

256,393

229,961

Total Liabilities and Shareholders' Equity

$

2,550,945

$

2,083,837

Net Interest Income / Interest Rate Spread

63,833

2.90

%

54,898

2.95

%

Net Interest Margin (3)

3.41

%

3.57

%

Taxable Equivalent Adjustment:

Tax-Exempt Investment Securities

(710)

(694)

Net Interest Income

$

63,123

$

54,204

(1) Interest income and average rates for tax-exempt investment securities and loans are presented on a tax-equivalent basis, assuming a statutory federal income tax rate of 21%.
(2) Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.
(3) Net interest margin includes the tax equivalent adjustment and represents the annualized results of: (i) the difference between interest income on interest earning assets and the interest expense on interest bearing liabilities, divided by (ii) average interest earning assets for the period.

Page 17 of 17

Exhibit 99.2

Investor Presentation Fourth Quarter 2019

2 Why Bridgewater Bank? Disclaimer Forward-Looking Statements This presentation contains 'forward-looking statements' within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of Bridgewater Bancshares, Inc. (the 'Company'). These statements are often, but not always, identified by words such as 'may', 'might', 'should', 'could', 'predict', 'potential', 'believe', 'expect', 'continue', 'will', 'anticipate', 'seek', 'estimate', 'intend', 'plan', 'projection', 'would', 'annualized', 'target' and 'outlook', or the negative version of those words or other comparable words of a future or forward-looking nature. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the negative effects of the COVID-19 pandemic, including its effects on the economic environment, our clients and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with the pandemic; loan concentrations in our portfolio; the overall health of the local and national real estate market; our ability to successfully manage credit risk; business and economic conditions generally and in the financial services industry, nationally and within our market area; our ability to maintain an adequate level of allowance for loan losses; new or revised accounting standards, including as a result of the future implementation of the Current Expected Credit Loss Standard; our high concentration of large loans to certain borrowers; our concentration of large deposits from certain clients; our ability to successfully manage liquidity risk; our dependence on non-core funding sources and our cost of funds; our ability to raise additional capital to implement our business plan; our ability to implement our growth strategy and manage costs effectively; developments and uncertainty related to the future use and availability of some reference rates, such as the London Interbank Offered Rate, as well as other alternative reference rates; the composition of our senior leadership team and our ability to attract and retain key personnel; the occurrence of fraudulent activity, breaches or failures of our information security controls or cybersecurity-related incidents; interruptions involving our information technology and telecommunications systems or third-party servicers; competition in the financial services industry; the effectiveness of our risk management framework; the commencement and outcome of litigation and other legal proceedings and regulatory actions against us; the impact of recent and future legislative and regulatory changes; interest rate risk; fluctuations in the values of the securities held in our securities portfolio; the imposition of tariffs or other governmental policies impacting the value of products produced by our commercial borrowers; severe weather, natural disasters, wide spread disease or pandemics (including the COVID-19 pandemic), acts of war or terrorism or other adverse external events; potential impairment to the goodwill we recorded in connection with our past acquisition; and any other risks described in the 'Risk Factors' sections of reports and other documents filed by the Company with the Securities and Exchange Commission. Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. Certain of the information contained in this presentation is derived from information provided by industry sources. Although we believe that such information is accurate and that the sources from which it has been obtained are reliable, we cannot guarantee the accuracy of, and have not independently verified, such information. Use of Non-GAAP financial measures In addition to the results presented in accordance with U.S. General Accepted Accounting Principles ('GAAP'), the Company routinely supplements its evaluation with an analysis of certain non-GAAP financial measures. The Company believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors to help them understand the Company's operating performance and trends, and to facilitate comparisons with the performance of peers. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of non-GAAP disclosures to the comparable GAAP measures are provided in this presentation.

3 Our History

4 Why Bridgewater Bank? Why Bridgewater?

5 1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation. * Change in basis points for profitability metrics Second Quarter 2020 Financial Results Q3 2020 Financial Results Q3 2020 Q2 2020 % Change Q3 2019 % Change Income Statement Summary Interest Income 28,493 $ 28,166 $ 1.2% 26,572 $ 7.2% Interest Expense 6,814 6,824 (0.1) 7,637 (10.8) Net Interest Income 21,679 21,342 1.6 18,935 14.5 Provision for Loan Losses 3,750 3,000 25.0 900 316.7 Net Interest Income after Provision 17,929 18,342 (2.3) 18,035 (0.6) Noninterest Income 1,157 1,977 (41.5) 946 22.3 Noninterest Expense 9,672 10,711 (9.7) 9,084 6.5 Pretax Income 9,414 9,608 (2.0) 9,897 (4.9) Provision for Income Taxes 2,240 2,010 11.4 2,092 7.1 Net Income 7,174 $ 7,598 $ (5.6) 7,805 $ (8.1) Diluted EPS 0.25 $ 0.26 $ (3.8) 0.27 $ (7.4) Balance Sheet Summary Total Assets 2,774,564 $ 2,754,463 $ 0.7% 2,232,339 $ 24.3% Loans, Gross 2,259,228 2,193,778 3.0 1,846,218 22.4 Deposits 2,273,044 2,242,051 1.4 1,802,236 26.1 Tangible Common Equity1 262,088 253,799 3.3 235,524 11.3 Profitability Metrics* Q3 2020 Q2 2020 Net Change Q3 2019 Net Change Return on Average Assets 1.05% 1.17% (0.12) 1.43% (0.38) Return on Average Equity 10.84 11.98 (1.14) 13.31 (2.47) Net Interest Margin 3.28 3.38 (0.10) 3.56 (0.28) Adjusted Efficiency Ratio1 41.7 40.4 1.30 42.9 (1.20) QoQ Comparison YoY Comparison

6 Strong Capital and Liquidity Dollars in thousands Strong Capital and Liquidity Consolidated Capital Ratios On & Off-Balance Sheet Liquidity as % of Total Assets 15.8% 14.2% 15.2% 18.3% 16.8% 18.6% 18.9% 14.0% 16.1% 15.5% $768,539 $749,816 $706,323 $948,234 $894,373 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 On-Balance Sheet Liquidity as a % of Assets Off-Balance Sheet Liquidity as a % of Assets 10.53% 10.69% 10.51% 9.94% 9.83% 11.26% 11.39% 11.10% 11.39% 11.03% 13.31% 12.98% 13.38% 15.99% 15.45% Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Tier 1 Leverage Ratio Common Equity Tier 1 Capital Ratio Total Risk-Based Capital Ratio

$232,524 $241,307 $244,704 $253,799 $262,088 10.43% 10.65% 10.13% 9.23% 9.46% Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Tangible Common Equity ($000)¹ Tangible Common Equity to Tangible Assets¹ $4.05 $4.53 $5.40 $7.22 $8.33 $9.13 2015 2016 2017 2018 2019 Q3 2020 Tangible Book Value Per Share¹ 7 Compound Tangible Book Value Strong Capital and Liquidity Compound Tangible Book Value Tangible Book Value Tangible Common Equity 1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation Dollars in thousands

8 Dollars in thousands Core Earnings Capital Generation Core Earnings Capital Generation Pre-Provision Net Revenue¹, Net Income, and ROA $11,269 $11,679 $12,157 $13,039 $13,200 $7,805 $8,571 $7,443 $7,598 $7,174 2.08% 2.09% 2.11% 2.00% 1.94% 1.43% 1.53% 1.29% 1.17% 1.05% Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 PPNR¹ Net Income PPNR ROA¹ ROA 1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation

Twin Cities Minnesota 9 Source: S&P Global Market Intelligence Efficient Branch Footprint Efficient Branch Footprint

10 Source: S&P Global Market Intelligence; deposit market share data as of 6/30/2020. Twin Cities Deposit Landscape Growing Market Share 2006 Total Market 2020 Total Market Top 10 Institutions Deposits ($000) Share Top 10 Institutions Deposits ($000) Share Wells Fargo & Co. 16,308,234 $ 27.59% U.S. Bancorp 83,341,943 $ 38.23% U.S. Bancorp 15,535,660 $ 26.28% Wells Fargo & Co. 65,154,088 $ 29.88% TCF Financial Corp. 3,686,508 $ 6.24% TCF Financial Corp. 8,226,068 $ 3.77% Marshall & Iisley Corp. 1,729,917 $ 2.93% Bank of Montreal 5,928,722 $ 2.72% Bremer Financial Corp. 1,720,239 $ 2.91% Bremer Financial Corp. 5,801,429 $ 2.66% Associated Banc-Corp 1,162,530 $ 1.97% Ameriprise Bank, fsb 5,300,381 $ 2.43% Klein Financial Inc. 880,289 $ 1.49% Bank of America Corp. 4,634,383 $ 2.13% Inter Savings Bank, fsb 558,660 $ 0.94% Old National Bancorp 3,585,042 $ 1.64% Excel Bank Corp. 505,614 $ 0.86% Bridgewater Bancshares 2,289,454 $ 1.05% American Bancorp 457,414 $ 0.77% Associated Banc-Corp 2,277,702 $ 1.04% Total Deposits 42,545,065 $ 71.98% Total Deposits 186,539,212 $ 85.55% Total Bank Deposits 59,119,026 $ 197 Total Bank Deposits 218,026,091 $ 144 % of Twin Cities MSA Deposits 71.98% % of Twin Cities MSA Deposits 85.55% Total Bank Deposits - Minneapolis-St.Paul-Bloomington, MN-WI MSA

11 Stable Operating Efficiency Efficiency Ratio Operating Expense Composition 1.56 1.67 1.68 1.37 1.40 0.10 0.20 0.01 0.27 0.02 42.9 44.3 44.1 40.4 41.7 45.6 49.6 44.4 48.6 42.3 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 NIE / Avg. Assets Historic Tax Credit Amortization Adjusted Efficiency Ratio¹ Efficiency Ratio¹ $5,915 $6,235 $6,454 $6,348 $6,550 $761 $883 $713 $672 $894 $415 $480 $495 $564 $652 $1,463 $1,763 $1,999 $1,335 $1,431 $530 $1,128 $85 $362 $145 $1,430 $9,084 $10,489 $9,746 $10,711 $9,672 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Personnel Occupancy Technology Other Historic Tax Credit Amortization FHLB Advance Prepayment Fees 1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation Dollars in thousands

12 ¹Excludes PPP Loan Yield impact *Amounts calculated on a tax-equivalent basis using statutory federal tax rate of 21% Dollars in thousands Net Interest Margin • 14.5% YoY growth in net interest income • Q3 2020 NIM was 3.33% when excluding PPP loans and corresponding deposits • Q3 2020 marked the first full quarter of the $50 million of additional subordinated debt and corresponding interest expense, which impacted NIM by 11 bps • Loan yields¹ only declined 8 bps while total interest bearing deposit costs decreased 17 bps when compared to the linked-quarter Net Interest Margin $18,935 $19,928 $20,102 $21,342 $21,679 3.56% 3.65% 3.59% 3.38% 3.28% Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Net Interest Income Net Interest Margin*

$1,805,920 $1,872,234 $1,954,959 $2,152,398 $2,206,807 5.32% 5.33% 5.17% 5.01% 4.93% 5.07% 5.00% 4.90% 4.76% 4.69% Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Average Loans Loan Yield Loan Yield Excluding Fees 13 *Yield is adjusted to exclude Paycheck Protection Program loans Dollars in thousands Spot Rate 2.51% Spot Rate 4.57%* Spot Rate 0.94% Spot Rate 0.90% Net Interest Drivers * $246,894 $263,926 $282,914 $295,352 $339,387 3.42% 3.38% 3.43% 3.13% 2.68% Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Average Investments Investment Yield $1,305,936 $1,341,910 $1,374,864 $1,501,946 $1,597,127 1.89% 1.79% 1.67% 1.38% 1.21% Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Average Interest Bearing Deposits Cost of Int. Bearing Deposits $1,305,936 $1,341,910 $1,374,864 $1,501,946 $1,597,127 $434,021 $451,265 $444,201 $603,456 $615,214 $181,889 $177,290 $234,463 $237,056 $214,758 1.58% 1.51% 1.44% 1.17% 1.12% Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Avg. Interest Bearing Deposits Avg. Noninterest Bearing Deposits Avg. Borrowings Cost of Liability Funding Average Investments and Yield Average Loans and Yield Cost of Interest Bearing Deposits Cost of Liability Funding

14 Dollars in thousands Loan Portfolio Repricing Loan Portfolio - Repricing Composition 17.0%, Adjustable 24.3%, Variable 58.7%, Fixed Variable/Adjustable Loans Vs. Rate Floors Fixed/Adjustable Years to Maturity/Repricing 88% 82% 67% 58% 79% 86% 12% 18% 33% 42% 21% 14% $223,780 $388,757 $267,496 $220,681 $278,357 $332,535 Less Than 1 Year 1 to 2 Years 2 to 3 Years 3 to 4 Years 4 to 5 Years > 5 Years Fixed Adjustable Index Rate At Floor 0 to -25 bps -26 to -50 bps -51 to -75 bps -76 to -100 bps > -100 bps Total PRIME 298,234 $ 20,330 $ 2,806 $ 35 $ 115 $ 586 $ 322,107 $ Libor 128,820 10,236 2,782 - 13,737 - 155,575 2 Yr FHLB 2,526 - - - - - 2,526 3 Yr FHLB 15,276 - - - - - 15,276 5 Yr FHLB 6,843 - - - - - 6,843 1 Yr CMT 9,544 - - - - - 9,544 2 Yr CMT 15,130 - 8,582 - - 1,743 25,454 3 Yr CMT 53,937 3,731 2,358 7,438 12,648 1,481 81,592 5 Yr CMT 170,279 18,569 2,248 6,484 1,944 9,205 208,728 10 Yr CMT 538 - - - - - 538 Total 701,127 $ 52,866 $ 18,775 $ 13,957 $ 28,444 $ 13,014 $ 828,183 $

$46,690 $46,690 $37,108 $30,736 $1,955 $39,360 $24,971 $34,478 $10,197 $29,212 $86,051 $71,661 $71,586 $40,933 $31,167 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Retail Time Deposit Maturities Brokered Time Deposit Maturities* 15 *Excludes rolling short term brokered funding balances related to interest rate hedges 1 Rate indicated assumes renewal into like term at market rates as of 10/19/2020 Dollars in thousands • $301.4 million in time deposits maturing in the next 5 quarters at a blended cost of 1.89% Deposit Repricing Opportunities Time Deposit Maturities Maturity Dates Balance* Weighted Avg. Yield Implied Repricing Rate1 % of Total Portfolio Oct-20 28,390 $ 2.21% 0.53% 4.66% Nov-20 13,417 2.07% 0.57% 2.20% Dec-20 44,244 1.88% 0.40% 7.27% Jan-21 26,628 1.98% 0.56% 4.37% Feb-21 22,796 2.00% 0.52% 3.74% Mar-21 22,238 2.06% 0.46% 3.65% Apr-21 23,833 1.34% 0.45% 3.91% May-21 25,574 1.91% 0.57% 4.20% Jun-21 22,180 1.80% 0.50% 3.64% Jul-21 12,136 1.61% 0.58% 1.99% Aug-21 16,057 1.74% 0.54% 2.64% Sep-21 12,740 1.27% 0.57% 2.09% Oct-21 17,726 1.97% 0.49% 2.91% Nov-21 5,296 2.16% 0.45% 0.87% Dec-21 8,146 2.47% 0.44% 1.34% Total 301,397 $ 1.89% 0.50% 49.50% Time Deposit Repricing

$60,000 $30,000 $1,802,236 $1,823,310 $1,900,127 $2,242,051 $2,273,044 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Total Deposits ($000's) PPP Loan Deposits ($000's) 16 • 37% YoY growth¹ in noninterest bearing deposits • Internal deposit growth plan momentum • The Bridge, a robust treasury management platform, continues to get traction, especially in this current environment where sophisticated digital banking tools and client self- service capabilities are paramount • Capitalizing on unique opportunity to migrate numerous new client relationships neglected or underserved by their primary bank during PPP Deposit Growth ¹ Excludes $30 million of noninterest bearing deposit growth associated with remaining PPP loan funds Dollars in thousands

22.2% 23.3% 21.9% 23.6% 24.5% 30.2% 17.1% 13.0% 13.2% 11.5% 14.5% 14.2% 20.1% 23.4% 27.6% 25.8% 28.3% 21.9% 25.3% 26.6% 21.8% 20.4% 19.8% 16.0% 15.3% 13.7% 15.5% 18.7% 12.9% 17.7% $761,882 $1,023,508 $1,339,350 $1,560,934 $1,823,310 $2,273,044 2015 2016 2017 2018 2019 Q3 2020 Noninterest Bearing Transaction Deposits Interest Bearing Transaction Deposits Savings & Money Market Deposits Time Deposits Brokered Deposits 17 Dollars in thousands Historical Deposit Composition Historical Deposit Composition • Continue to attract in-market lenders and deposit gatherers with loyal client bases from institutions disrupted by M&A • Average core deposits per branch surpassed $250 million • Growth in brokered deposits linked to balance sheet swaps and utilized given their flexible structures, optionality and efficiency not afforded in traditional, retail deposit channels

$180,228 $181,596 $1,846,218 $1,912,038 $2,002,817 $2,193,778 $2,259,228 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Total Gross Loans ($000's) PPP Loans ($000's) 18 Loan Growth • Continued focus on profitable loan growth and disciplined pricing • Meaningful new and diverse client acquisition opportunities generated through PPP • Addition of C&I lending expertise as a result of M&A disruption Loan Growth Dollars in thousands

14.6% 10.6% 9.7% 12.6% 10.3% 7.8% 17.9% 17.9% 14.5% 13.6% 13.6% 12.7% 0.3% 0.4% 0.3% 0.2% 0.2% 0.3% 21.1% 20.5% 23.6% 24.5% 26.9% 25.9% 6.1% 6.2% 4.9% 3.9% 3.5% 3.4% 27.0% 31.2% 30.8% 29.5% 31.0% 29.2% 13.0% 13.2% 16.2% 15.7% 14.5% 12.7% ​ ​ ​ ​ ​ 8.0% $799,497 $1,000,739 $1,347,113 $1,664,931 $1,912,038 $2,259,228 2015 2016 2017 2018 2019 Q3 2020 Construction & Development 1-4 Family Consumer & Other Multifamily Owner-Occupied CRE Non Owner-Occupied CRE Commercial & Industrial Paycheck Protection Program 19 Dollars in thousands Historical Loan Composition Historical Loan Composition • Strong organic growth • Well diversified portfolio among asset classes • Multifamily niche mitigates concentrations and portfolio risk • Geographic focus on Twin Cities MSA

20 Investor Real Estate Secured: CRE Nonowner Occupied ('NOO') Full Payment Interest Only 16% 7-12 Month 1-3 Month 4-6 Month 4-6 Month 1Excludes PPP Loans *Based on lender and client survey Modifications as of September 30, 2020 Dollars in thousands Loan Type CRE Nonowner Occupied Multifamily Construction and Development 1-4 Family Mortgage CRE Owner Occupied Commercial and Industrial Consumer and Other Total Balance June 30, 2020 $ 186,979 $ 57,571 $ 133 $ 8,458 $ 8,899 $ 30,970 $ - $ 293,010 Modification Expired (82,820) (16,252) (133) (2,869) (5,751) (27,674) - (135,500) 2nd Modification Granted 15,684 ---- 6,134 - 21,818 New Modifications 8,046 ---- 2,456 - 10,502 Net Principal Change 364 954 --- 233 - 1,551 Balance September 30, 2020 $ 128,252 $ 42,273 $ - $ 5,589 $ 3,148 $ 12,119 $ - $ 191,381 Total Portfolio Principal Balance1 $ 660,058 $ 585,814 $ 175,882 $ 286,089 $ 75,963 $ 287,254 $ 6,572 $ 2,077,632 % of Total Gross Loans 19.4% 7.2% 0.0% 2.0% 4.1% 4.2% 0.0% 9.2% % on Watchlist 16.7% 0.0% 0.0% 0.0% 0.0% 65.6% 0.0% 15.3% % Classified as Substandard 2.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1.5% Linked Quarter % Decline -31.4% -26.6% -100.0% -33.9% -64.6% -60.9% 0.0% -34.7% $36,541 $3,301 $2,455 $27,441 $3,542 $2,909 $10,830 $11,668 $636 $18,468 Nov-20 Dec-20 Q1 2021 Q2 2021 Q3 2021 Q4 2021 First Modification Rolloff Second Modification Rolloff Expiration of Modifications as of October 22, 2020*

21 *Based on lender and client survey Dollars in thousands Loan Portfolio Composition Loans by Type Loan Portfolio Composition CRE NOO 29.2% Multifamily 25.9% C&D 7.8% 1-4 Family 12.7% CRE OO 3.4% C&I 12.7% PPP 8.0% Consumer & Other 0.3% $2.26 Billion % of Balance Total (dollars in thousands) Investor Real Estate Secured CRE Nonowner Occupied (CRE NOO) 660,058 $ 29.2% Multifamily 585,814 25.9% Construction and Development (C&D) 175,882 7.8% Total Investor Real Estate Secured 1,421,754 62.9% 1-4 Family Residential 286,089 12.7% CRE Owner Occupied (CRE OO) 75,963 3.4% Commercial and Industrial (C&I) 287,254 12.7% SBA Paycheck Protection Program (PPP) 181,596 8.0% Consumer and Other 6,572 0.3% Total Loans, Gross 2,259,228 100.0% $293,010 $169,563 $69,738 $21,818 $48,053 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 6/30/2020 9/30/2020 10/22/2020* First Modification Second Modification Modification Summary

22 Investor Real Estate Secured: CRE Nonowner Occupied ('NOO') By Property Type Portfolio Characteristics - CRE NOO Loan Balance Outstanding $660,058 % of Total Loans, Gross 29.2% Number of Loans 346 Average Loan Size $1,908 Loan-to-Value (Weighted Average) 59.6% 5 Year Net Charge-Offs (%) 0.05% Modification Summary Office 28.3% Retail 25.5% Industrial 22.2% Nursing/ Assisted Living 8.2% Hotels 4.8% Restaurant 3.0% Other 8.0% Investor Real Estate Secured: CRE Nonowner Occupied ('NOO') $660 Million Full Payment Interest Only 23% 77% 7-12 Month 1-3 Month 4-6 Month 4-6 Month $186,979 $112,567 $21,141 $15,683 $41,782 $0 $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 $225,000 6/30/2020 9/30/2020 10/22/2020* First Modification Second Modification Risk Rating Number of Loans 9/30/20 Total Pass 334 $ 618,891 Watch 8 29,056 Substandard 4 12,111 Total 346 $ 660,058 *Based on lender and client survey Dollars in thousands

Modification Summary $51,195 $18,489 $3,839 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 6/30/2020 9/30/2020 10/22/2020* First Modification Second Modification 23 By Property Square Footage Portfolio Characteristics - CRE NOO Office Loan Balance Outstanding $186,914 % of Total Loans, Gross 8.3% Number of Loans 93 Average Loan Size $2,010 Loan-to-Value (Weighted Average) 61.2% Investor Real Estate Secured: CRE NOO Retail Investor Real Estate Secured: CRE NOO Office 4-6 Month 0-30k Sq Ft, 38.9% 30k - 100k Sq Ft, 35.4% 100k+ Sq Ft, 25.7% $187 Million Risk Rating Number of Loans 9/30/20 Total Pass 93 $ 186,914 Watch -- Substandard -- Total 93 $ 186,914 *Based on lender and client survey Dollars in thousands

Modification Summary $74,300 $53,307 $10,658 $8,551 $9,104 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 6/30/2020 9/30/2020 10/22/2020* First Modification Second Modification 24 By Property Square Footage Portfolio Characteristics - CRE NOO Retail Loan Balance Outstanding $168,279 % of Total Loans, Gross 7.5% Number of Loans 105 Average Loan Size $1,603 Loan-to-Value (Weighted Average) 62.0% Investor Real Estate Secured: CRE NOO Retail Investor Real Estate Secured: CRE NOO Retail 4-6 Month 0-30k Sq Ft, 44.5% 30k - 100k Sq Ft, 34.9% 100k+ Sq Ft, 20.6% $168 Million Risk Rating Number of Loans 9/30/20 Total Pass 100 $ 156,478 Watch 3 8,690 Substandard 2 3,111 Total 105 $ 168,279 *Based on lender and client survey Dollars in thousands

Modification Summary $14,801 $6,684 $3,878 $0 $4,000 $8,000 $12,000 $16,000 $20,000 6/30/2020 9/30/2020 10/22/2020* First Modification Second Modification 25 By Property Square Footage Portfolio Characteristics - CRE NOO Industrial Loan Balance Outstanding $146,363 % of Total Loans, Gross 6.5% Number of Loans 61 Average Loan Size $2,399 Loan-to-Value (Weighted Average) 54.9% Investor Real Estate Secured: CRE NOO Retail Investor Real Estate Secured: CRE NOO Industrial 4-6 Month 0-30k Sq Ft, 7.3% 30k - 100k Sq Ft, 23.1% 100k+ Sq Ft, 69.6% $146 Million Risk Rating Number of Loans 9/30/20 Total Pass 61 $ 146,363 Watch -- Substandard -- Total 61 $ 146,363 *Based on lender and client survey Dollars in thousands

26 *Based on state of primary real property collateral if available, otherwise borrower address is used. Investor Real Estate Secured: CRE NOO Hotels By Geography * Portfolio Characteristics - CRE NOO Hotels Loan Balance Outstanding $31,630 % of Total Loans, Gross 1.4% Number of Loans 6 Average Loan Size $5,272 Loan-to-Value (Weighted Average) 63.5% Twin Cities MSA 88.6% MN 11.4% $32 Million Investor Real Estate Secured: CRE NOO Hotels 4-6 Month Full Payment 100% Modification Summary $19,477 $12,136 $7,133 $19,262 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 6/30/2020 9/30/2020 10/22/2020** First Modification Second Modification Risk Rating Number of Loans 9/30/20 Total Pass 3 $ 15,904 Watch 3 15,726 Substandard -- Total 6 $ 31,630 **Based on lender and client survey Dollars in thousands

27 By Restaurant Type Portfolio Characteristics - CRE NOO Restaurant Loan Balance Outstanding $19,763 % of Total Loans, Gross 0.9% Number of Loans 17 Average Loan Size $1,163 Loan-to-Value (Weighted Average) 56.1% Investor Real Estate Secured: CRE NOO Restaurant Investor Real Estate Secured: CRE NOO Restaurant Full-Service 41.6% Quick-Service 31.0% Tap Rooms 11.9% Coffee Shops & Bakeries 15.4% $20 Million Interest Only 96% 4% 4-6 Month 7-12 Month Modification Summary Risk Rating Number of Loans 9/30/20 Total Pass 17 $ 19,763 Watch -- Substandard -- Total 17 $ 19,763 $13,117 $12,501 $6,605 $2,358 $0 $2,500 $5,000 $7,500 $10,000 $12,500 $15,000 $17,500 $20,000 6/30/2020 9/30/2020 10/22/2020* First Modification Second Modification *Based on lender and client survey Dollars in thousands

5-19 Units 15.2% 20-49 Units 25.0% 50-99 Units 31.8% 100+ Units 27.9% $586 Million 28 By Unit Type Portfolio Characteristics - Multifamily Loan Balance Outstanding $585,814 % of Total Loans, Gross 25.9% Number of Loans 309 Average Loan Size $1,896 Loan-to-Value (Weighted Average) 61.7% 5 Year Net Charge-Offs (%) 0.00% Investor Real Estate Secured: CRE NOO Restaurant Investor Real Estate Secured: Multifamily Interest Only 44% 56% 7-12 Month 100% Risk Rating Number of Loans 9/30/20 Total Pass 309 $ 585,814 Watch -- Substandard -- Total 309 $ 585,814 Modification Summary $57,571 $42,273 $41,089 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 6/30/2020 9/30/2020 10/22/2020* First Modification Second Modification *Based on lender and client survey Dollars in thousands

Residential 34.0% Multifamily 34.2% CRE Other 10.9% Land 21.0% $176 Million 29 By Property Type By Geography* Land Portfolio Composition Investor Real Estate Secured: CRE NOO Restaurant Investor Real Estate Secured: Construction and Development Portfolio Characteristics - C&D Loan Balance Outstanding $175,882 % of Total Loans, Gross 7.8% % Utilization of Commitments 39.1% Number of Loans 301 Average Loan Size $584 Loan-to-Value (Weighted Average) 63.3% 5 Year Net Charge-Offs (%) 0.11% Twin Cities MSA 89.4% MN 1.0% Other States 9.6% Finished Lots, 40.6% Developed Land, 42.4% Undeveloped Land, 17.1% $37 Million Dollars in thousands *Based on state of primary real property collateral if available, otherwise borrower address is used.

30 Investor Real Estate Secured: CRE Nonowner Occupied ('NOO') By Property Type Portfolio Characteristics - CRE OO Loan Balance Outstanding $75,963 % of Total Loans, Gross 3.4% Number of Loans 124 Average Loan Size $613 Loan-to-Value (Weighted Average) 57.0% 5 Year Net Charge-Offs (%) 0.03% Office 28.2% Retail 14.4% Industrial 46.3% Restaurant 3.8% Other 7.3% $76 Million Real Estate Secured: CRE Owner Occupied 4-6 Month 4-6 Month Modification Summary $8,899 $3,149 $0 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 6/30/20 9/30/20 10/22/20 First Modification Second Modification Risk Rating Number of Loans 9/30/20 Total Pass 121 $ 74,374 Watch -- Substandard 3 1,589 Total 124 $ 75,963 Dollars in thousands

$287 Million Real Estate and Rental and Leasing, 35.8% Construction, 22.4% Finance & Insurance, 13.3% Manufacturing, 13.2% Professional Services, 5.5% Other Services, 3.0% Accomodation & Food Services, 3.7% Other, 3.0% 31 *Distribution by North American Industry Classification System (NAICS). Any industries included in Other category are individually < 3% of total portfolio. By Industry * Portfolio Characteristics - C&I Loan Balance Outstanding $287,254 % of Total Loans, Gross 12.7% Number of Loans 705 Average Loan Size $407 Number of Relationships 441 5 Year Net Charge-Offs (%) 0.02% Commercial and Industrial Full Payment Interest Only 43% 57% 4-6 Month 1-3 Month Modification Summary $30,970 $5,985 $4,188 $6,134 $6,271 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 6/30/20 9/30/20 10/22/20 First Modification Second Modification Risk Rating Number of Loans 9/30/20 Total Pass 682 $ 266,554 Watch 15 20,267 Substandard 8 432 Total 705 $ 287,254 Dollars in thousands

$182 Million Real Estate and Rental and Leasing 22.5% Professional Services 15.8% Health Care and Social Assistance 12.1% Manufacturing 10.4% Construction 8.8% Accomodation & Food 6.4% Finance and Insurance 4.7% Other Services 4.5% Other 14.7% 32 *Distribution by North American Industry Classification System (NAICS). Any industries included in Other category are individually < 4% of total portfolio. By Industry * New vs. Existing Client PPP Origination Summary Balance Segment Number of Loans Principal Balance Origination Fees < $350 1,072 $ 65,797 $ 3,290 $350 to $2,000 107 80,618 2,419 > $2,000 11 35,181 352 Total 1,190 $ 181,596 $ 6,060 PPP Loans Existing Client 59.0% New Client 41.0% Dollars in thousands PPP Forgiveness Summary as of 10/22/2020 Balance Segment Submitted to SBA Payment Received from SBA # of Loans Principal Balance Unrecognized Fees # of Loans Principal Balance Unrecognized Fees < $350 119 $ 9,168 $ 336 42 $ 1,190 $ 37 $350 to $2,000 20 12,716 297 --- > $2,000 ------ Total 139 $ 21,884 $ 634 42 $ 1,190 $ 37

33 Investor Real Estate Secured: CRE Nonowner Occupied ('NOO') Watch List By Loan Type Substandard List By Loan Type C&I 39.8% CRE NOO Retail 17.1% CRE NOO Hotels 30.9% 1-4 Family 2.9% CRE Other 9.1% C&D 0.3% $51 Million Asset Quality Dollars in thousands Watch List Characteristics Loan Balance Outstanding $50,917 % of Total Loans, Gross 2.3% Number of Loans 28 Average Loan Size $1,818 Substandard List Characteristics Loan Balance Outstanding $16,074 % of Total Loans, Gross 0.7% Number of Loans 25 Average Loan Size $643 % of Bank Tier 1 Capital + ALLL 5.0% CRE Other 56.0% CRE NOO Retail 19.4% 1-4 Family 11.0% Owner Occupied, 9.9% C&I 2.7% C&D 1.1% Consumer & Other 0.1% $16 Million

34 Asset Quality Asset Quality $12,194 $5,888 $4,184 $2,695 $16,074 9.73% 3.43% 1.82% 1.01% 5.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 2016 2017 2018 2019 Q3 2020 Classified Assets ($000s) % of Bank Tier 1 Capital + ALLL $6,506 $1,720 $581 $461 $433 0.52% 0.11% 0.03% 0.02% 0.02% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 2016 2017 2018 2019 Q3 2020 NPAs ($000s) % of Assets $12,333 $16,502 $20,031 $22,526 $31,381 1.23% 1.22% 1.20% 1.18% 1.39% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 2016 2017 2018 2019 Q3 2020 ALLL ($000s) % of Gross Loans $969 $6 $46 $205 $2 0.11% 0.00% 0.00% 0.01% 0.00% -0.05% -0.03% 0.00% 0.03% 0.05% 0.08% 0.10% 0.13% $(150) $100 $350 $600 $850 $1,100 $1,350 $1,600 2016 2017 2018 2019 Q3 2020 NCOs ($000s) % of Avg. Loans Classified Assets Nonperforming Assets Allowance for Loan Losses Net Charge-Offs Dollars in thousands

35 Investor Highlights Investor Highlights

37 Note: data set includes selected Minnesota bank and thrift M&A transactions in recent years Source: S&P Global Market Intelligence; public filings Core Target Deal Deposit Announcement Total Assets Value Premium In Market / Buyer State Seller State Date ($mm) ($mm) (%) Market Entry MN MN 6/28/2019 $129 NA NA In Market SD MN 5/29/2019 $347 NA NA Market Entry MN MN 4/22/2019 $206 NA NA In Market IN MN 6/21/2018 $1,972 $433.8 14.9 In Market ND MN 2/19/2018 $729 NA NA Market Entry IA MN 11/13/2017 $390 $53.4 10.9 In Market IN MN 8/8/2017 $2,056 $303.3 8.6 Market Entry SD MN 8/3/2017 $409 NA NA Market Entry NE MN 6/28/2016 $209 NA NA In Market MN MN 1/7/2016 $76 $12.0 8.2 In Market ND MN 9/22/2015 $352 $46.0 8.2 In Market MN MN 7/24/2014 $670 $80.0 NA Market Entry IA MN 11/21/2014 $1,172 $133.6 6.0 Market Entry NE MN 7/25/2012 $401 NA NA Market Entry Recent Minnesota M&A Transactions

38 Source: S&P Global Market Intelligence *Dollars in thousands 265 •Commercial Banks located in Minnesota 233 •Commercial Banks located in Minnesota, and with less than $500 million in assets 49 •Commercial Banks located in the Twin Cities MSA, and with less than $500 million in assets 30 •Commercial Banks located in the Twin Cities MSA, with less than $500 million in assets, and a loan to deposits ratio of less than 80% ➢Total Assets (Median) = $177,703* ➢Cost of Funds (Median) = 0.62% Potential Acquisition Targets

39 1 Non-GAAP financial measures; for further information, see page 40 Consolidated Summary Financial Information - Historical Dollar Values in Millions 2015Y 2016Y 2017Y 2018Y 2019Y Balance Sheet Total Assets 929 $ 1,260 $ 1,617 $ 1,974 $ 2,269 $ Gross Loans 799 1,001 1,347 1,665 1,912 Deposits 762 1,024 1,339 1,561 1,823 Gross Loan/Deposits 104.9% 97.8% 100.6% 106.7% 104.9% \ Capital Total Equity 80 $ 115 $ 137 $ 221 $ 245 $ Tangible Common Equity1 80 111 133 217 241 Tangible Common Equity/Tangible Assets1 8.63% 8.86% 8.26% 11.03% 10.65% Tier 1 Leverage Ratio 8.89% 9.44% 8.38% 11.23% 10.69% Tier 1 Risk-based Capital Ratio 10.34% 11.49% 9.49% 12.07% 11.39% Total Risk-based Capital Ratio 11.59% 12.74% 12.46% 14.55% 12.98% Earnings & Profitability Net Income 11.2 $ 13.2 $ 16.9 $ 26.9 $ 31.4 $ ROAA 1.39% 1.20% 1.16% 1.51% 1.49% ROAE 17.50% 12.88% 13.18% 13.87% 13.50% Net Interest Margin 4.18% 4.00% 3.92% 3.72% 3.59% Non-Int Inc./Avg. Assets 0.23% 0.23% 0.17% 0.14% 0.18% Adjusted Non-Int Exp./Avg. Assets N/A N/A 1.62% 1.59% 1.59% Adjusted Efficiency Ratio1 N/A N/A 41.1% 41.7% 43.3% Asset Quality NPAs/Assets 0.33% 0.52% 0.11% 0.03% 0.02% Reserves/NPLs 429.94% 530.91% 1,448.81% 3,447.68% 4,886.33% Reserves/Loans 1.26% 1.23% 1.22% 1.20% 1.18% NCOs/Average Loans 0.14% 0.11% 0.00% 0.00% 0.01% For the Fiscal Year Ended,

40 This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of these non-GAAP financial measures are provided below. BWB believes these non-GAAP financial measures provide useful information to both management and investors to analyze and evaluate BWB's financial performance. Because not all companies use the same calculations for these measures, the information in this presentation may not be comparable to other similarly titled measures as calculated by other companies. *Efficiency Ratio is adjusted to exclude the historic tax credit amortization. Dollars in thousands Reconciliation of Annual Non-GAAP Measures Efficiency Ratio 2015 2016 2017 2017* 2018 2018* 2019 2019* Noninterest Expense 14,817 $ 20,168 $ 25,496 $ 25,496 $ 31,562 $ 31,562 $ 36,932 $ 36,932 $ Less: Amortization of Tax Credit Investments - - - (1,916) - (3,293) - (3,225) Less: Amortization Intangible Assets - (104) (191) (191) (191) (191) (191) (191) Adjusted Noninterest Expense 14,817 $ 20,064 $ 25,305 $ 23,389 $ 31,371 $ 28,078 $ 36,741 $ 33,516 $ Net Interest Income 32,695 $ 42,118 $ 54,173 $ 54,173 $ 64,738 $ 64,738 $ 74,132 $ 74,132 $ Noninterest Income 1,872 2,567 2,536 2,536 2,543 2,543 3,826 3,826 Less: (Gain) Loss on Sales of Securities (574) (830) 250 250 125 125 (516) (516) Adjusted Operating Revenue 33,993 $ 43,855 $ 56,959 $ 56,959 $ 67,406 $ 67,406 $ 77,442 $ 77,442 $ Efficiency Ratio 43.6% 45.8% 44.4% 41.1% 46.5% 41.7% 47.4% 43.3% Tangible Common Equity & Tangible Common Equity/Tangible Assets 2015 2016 2017 2018 2019 Common Equity 80,178 $ 115,366 $ 137,162 $ 220,998 $ 244,794 $ Less: Intangible Assets - (4,060) (3,869) (3,678) (3,487) Tangible Common Equity 80,178 $ 111,306 $ 133,293 $ 217,320 $ 241,307 $ Total Assets 928,686 $ 1,260,394 $ 1,616,612 $ 1,973,741 $ 2,268,830 $ Less: Intangible Assets - (4,060) (3,869) (3,678) (3,487) Tangible Assets 928,686 $ 1,256,334 $ 1,612,743 $ 1,970,063 $ 2,265,343 $ Tangible Common Equity/Tangible Assets 8.63% 8.86% 8.26% 11.03% 10.65% Tangible Book Value Per Share 2015 2016 2017 2018 2019 Book Value Per Common Share 4.05 $ 4.69 $ 5.56 $ 7.34 $ 8.45 $ Less: Effects of Intangible Assets - (0.17) (0.16) (0.12) (0.12) Tangible Book Value Per Common Share 4.05 $ 4.52 $ 5.40 $ 7.22 $ 8.33 $ Total Common Shares 19,819,349 24,589,861 24,679,861 30,097,274 28,973,572 As of and for the year ended December 31 for year end data, As of and for the year ended December 31 for year end data,

41 This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of these non-GAAP financial measures are provided below. BWB believes these non-GAAP financial measures provide useful information to both management and investors to analyze and evaluate BWB's financial performance. Because not all companies use the same calculations for these measures, the information in this presentation may not be comparable to other similarly titled measures as calculated by other companies. *Efficiency Ratio is adjusted to exclude the historic tax credit amortization. Dollars in thousands Reconciliation of Quarterly Non-GAAP Measures Efficiency Ratio September 30, 2019 September 30, 2019 * December 31, 2019 December 31, 2019 * March 31, 2020 March 31, 2020* June 30, 2020 June 30, 2020* September 30, 2020 September 30, 2020* Noninterest Expense 9,084 $ 9,084 $ 10,489 $ 10,489 $ 9,746 $ 9,746 $ 10,711 $ 10,711 $ 9,672 $ 9,672 $ Less: Amortization of Tax Credit Investments - (530) - (1,128) - (85) - (362) - (145) Less: FHLB Advances Prepayment Fee - - - - - - - (1,430) - - Less: Amortization Intangible Assets (48) (48) (48) (48) (48) (48) (47) (47) (48) (48) Adjusted Noninterest Expense 9,036 $ 8,506 $ 10,441 $ 9,313 $ 9,698 $ 9,613 $ 10,664 $ 8,872 $ 9,624 $ 9,479 $ Net Interest Income 18,935 $ 18,935 $ 19,928 $ 19,928 $ 20,102 $ 20,102 $ 21,342 $ 21,342 $ 21,679 $ 21,679 $ Noninterest Income 946 946 1,112 1,112 1,719 1,719 1,977 1,977 1,157 1,157 Less: Gain on Sales of Securities (58) (58) - - (3) (3) (1,361) (1,361) (109) (109) Adjusted Operating Revenue 19,823 $ 19,823 $ 21,040 $ 21,040 $ 21,818 $ 21,818 $ 21,958 $ 21,958 $ 22,727 $ 22,727 $ Efficiency Ratio 45.6% 42.9% 49.6% 44.3% 44.4% 44.1% 48.6% 40.4% 42.3% 41.7% Tangible Common Equity & Tangible Common Equity/Tangible Assets September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 Common Equity 236,059 $ 244,794 $ 248,143 $ 257,190 $ 265,432 $ Less: Intangible Assets (3,535) (3,487) (3,439) (3,391) (3,344) Tangible Common Equity 232,524 $ 241,307 $ 244,704 $ 253,799 $ 262,088 $ Total Assets 2,232,339 $ 2,268,830 $ 2,418,730 $ 2,754,463 $ 2,774,564 $ Less: Intangible Assets (3,535) (3,487) (3,439) (3,391) (3,344) Tangible Assets 2,228,804 $ 2,265,343 $ 2,415,291 $ 2,751,072 $ 2,771,220 $ Tangible Common Equity/Tangible Assets 10.43% 10.65% 10.13% 9.23% 9.46% Tangible Book Value Per Share September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 Book Value Per Common Share 8.20 $ 8.45 $ 8.61 $ 8.92 $ 9.25 $ Less: Effects of Intangible Assets (0.12) (0.12) (0.12) (0.12) (0.12) Tangible Book Value Per Common Share 8.08 $ 8.33 $ 8.49 $ 8.80 $ 9.13 $ Total Common Shares 28,781,162 28,973,572 28,807,375 28,837,560 28,710,775 As of and for the quarter ended,

42 This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of these non-GAAP financial measures are provided below. BWB believes these non-GAAP financial measures provide useful information to both management and investors to analyze and evaluate BWB's financial performance. Because not all companies use the same calculations for these measures, the information in this presentation may not be comparable to other similarly titled measures as calculated by other companies. Dollars in thousands Reconciliation of Quarterly Non-GAAP Measures - Pre-Provision Pre-Provision Net Revenue September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 Noninterest Income 946 $ 1,112 $ 1,719 $ 1,977 $ 1,157 $ Less: Gain on sales on Securities (58) - (3) (1,361) (109) Total Operating Noninterest Income 888 1,112 1,716 616 1,048 Plus: Net Interest Income 18,935 19,928 20,102 21,342 21,679 Net Operating Revenue 19,823 21,040 21,818 21,958 22,727 Noninterest Expense 9,084 10,489 9,746 10,711 9,672 Less: Amortization of Tax Credit Investments (530) (1,128) (85) (362) (145) Less: FHLB Advances Prepayment Fees - - - (1,430) - Total Operating Noninterest Expense 8,554 9,361 9,661 8,919 9,527 PPNR 11,269 $ 11,679 $ 12,157 $ 13,039 $ 13,200 $ As of and for the quarter end,

For Immediate Release

Contact: Jerry Baack

President & CEO

Bridgewater Bancshares, Inc.

(952) 893-6866

October 29, 2020

Bridgewater Bancshares Announces Changes to
Stock Repurchase Program

St. Louis Park, MN - Bridgewater Bancshares, Inc. ('Bridgewater') (NASDAQ: BWB), the holding company for Bridgewater Bank, today announced that its Board of Directors has approved a $15 million increase to Bridgewater's existing stock repurchase program. This approval increased the authorization to repurchase common stock under the program from a total of $25 million to up to a total of $40 million. The Board of Directors also approved an extension of the program until October 27, 2022.

Bridgewater also announced that it had repurchased a total of approximately $22.4 million of shares under the stock repurchase program which was originally announced in January 2019. As of October 28, 2020, approximately $17.6 million of Bridgewater common stock remained authorized for repurchase under the newly increased program.

'We are pleased that the Company's strong historical financial performance and well-capitalized designation gives us the opportunity to increase our stock repurchase program and continue our commitment to enhancing shareholder value. As we manage through these unprecedented times, the Company remains committed to maintaining strong capital levels and will consider the economic impacts of the COVID-19 pandemic when evaluating the utilization of the stock repurchase program,' said Chairman, President and CEO Jerry Baack.

The stock repurchase program permits Bridgewater's management to acquire shares of Bridgewater's common stock from time to time in the open market in accordance with Rule 10b-18 of the Securities Exchange Act or in privately negotiated transactions at prices management considers to be attractive and in the best interests of Bridgewater and its shareholders. The stock repurchase program does not obligate Bridgewater to repurchase shares of its common stock, and there is no assurance that Bridgewater will do so.

Any repurchases are subject to compliance with applicable laws and regulations. Repurchases will be conducted in consideration of general market and economic conditions, regulatory requirements, availability of funds, and other relevant considerations, as determined by Bridgewater. The stock repurchase program may be modified, suspended or discontinued at any time at the discretion of Bridgewater's Board of Directors.

About Bridgewater Bancshares, Inc.
Bridgewater Bancshares, Inc. is a financial holding company headquartered in St. Louis Park, Minnesota. The Company has two wholly owned subsidiaries, Bridgewater Bank, a Minnesota-chartered commercial bank founded in November 2005, and Bridgewater Risk Management, Inc., a captive insurance company founded in December 2016. Bridgewater Bank has seven locations serving clients across the Minneapolis-St. Paul metropolitan statistical area in Minnesota and offers a full array of simple, quality loan and deposit products, primarily for commercial clients. As of September 30, 2020, the Company had total assets of approximately $2.77 billion, total loans of approximately $2.26 billion, total deposits of approximately $2.27 billion and total shareholders' equity of approximately $265.4 million.

Forward-Looking Statements

This press release contains 'forward-looking statements' within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of Bridgewater. Forward-looking statements are neither historical facts nor assurances of future

performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the risks described in the 'Risk Factors' sections of reports filed by Bridgewater with the Securities and Exchange Commission. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Source: Bridgewater Bancshares, Inc.