Bridgewater Bancshares, Inc. · NASDAQ:BWB
Bridgewater Bancshares — Q1 2022 Earnings Presentation
33 slides from Bridgewater Bancshares's earnings presentation, May 4, 2022
Slide 1: Investor Presentation First Quarter 2022
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Slide 2: Disclaimer
“_—™' BRIDGEWATER BANCSHARES, INC. Disclaimer Forward-Looking Statements ward-looking statements" withinthe meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking stat imates, calculations, forecasts and projections with respect # ted futu
Slide 3: Branch-Light Model in Attractive Twin Cities Market
—™~ in the Twin Cities BRIDGEWATER BANCSHARES, INC. Company Over Branch-Light Model in Attractive Twin Cities Market Bridgewater Bancshares, Inc. The Finest Entrepreneurial Bank Twin Cities MSA Headquarters: St. Louis Park, MN NASDAQ: BWB; BWBBP panei $3.6 Billion cy re eso wen $3.0 Billion g BRIDGE
Slide 4: Strategic Leadership Team with Broad Skill Sets and Industry Expertise
Strategic Leadership Team with Broad Skill Sets and Industry Expertise BRIDGEWATER BANCSHARES, INC. Mary Jayne Crocker EVP and Chief Operating Officer porat Jerry Baack Chairman, CEO and President Past regulator and Lead implementation of uniqué Joined BWB in 2005 sponsible for allaspects of BWB for
Slide 5: A Culture-Driven Organic Growth Story
A Culture-Driven Organic Growth Story BRIDGEWATER BANCSHARES, INC. Truly Unconventional Culture hly Efficient Business Model + Entrepreneurial spirit unlike the culture at atypical + Branch-light model + Efficient operating philosophy, including bank + New HQ with modern, open layout promoting netwo
Slide 6: Our Core Values
——™' Our Core Values BRIDGEWATER BANCSHARES, INC. Unconventional. Our clients notice a difference. Responsive. Under promise, over deliver. Dedicated. Don’t stop until you get it done. Growth. If you aren’t moving forward, where are you going? Accurate. It’s more than just an expectation.
Slide 7: An Award-Winning Workplace Culture
An Award-Winning Workplace Culture BRIDGEWATER BANCSHARES, INC. New Corporate Headquarters Progressive Pay and Benefits Volunteer Paid Time Off Health and Wellness Committee Diversity, Equity and Inclusion Committee Top Workplaces Star Tribune 2016. 2017. 2018. 2020. 2021. Modern, open design with a
Slide 8: A Responsive Service Model
A Responsive Service Model BRIDGEWATER BANCSHARES, INC. + Responsive support and simple solutions “Bridgewater's ability to adapt, keep pace and deliver unconventional results is invaluable. They are a complete joy to work with.” Josh Brandsted Greco |. DISCOVER + A local bank of choice ina market w
Slide 9: A Commitment to Our Communities
A Commitment to Our Communities BRIDGEWATER BANCSHARES, INC. Our communities can expect... Bridgewater's commitment to investing, lending and volunteering in ways that serve low-to-moderate income segments in the Twin Cities Impacting the greater good. ‘Outstanding’ Rating for Community Reinvestment
Slide 10: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) © grincrwarer BANCSHARES, INC. We are committed to establishing and advancing impactful initiatives that support our Our ESG corporate responsibility as a growing local bank in the Twin Cities, while regularly sharing our Commitment progress with our stakeh
Slide 11: Attractive Twin Cities Market
Attractive Twin Cities Market Built for Business Large Corporate Presence Credit Worthy Population Fortune 500 companies State with highest per capita (16)' average credit score (726)? #1 #5 Best place for State with educational achievement women entrepreneurs? beyond high school (59% of age 25-64 p
Slide 12: History of Organic Asset Growth Generation
“_—™' BRIDGEWATER BANCSHARES, INC. History of Organic Asset Growth Generation Proven ability to consistently generate 20%+ annual asset growth primarily in the Twin Cities market Asset growth has almost exclusively been organic, with the exception of a small bank acquisition in 2016 Anticipate the T
Slide 13: It's Who We Are: Robust Loan Growth
=~ It’s Who We Are BRIDGEWATER BANCSHARES, INC. Robust Loan Growth Isn’t Unusual at BWB, Current BWB Loan Growth Catalysts $2,988 M&A-related market disruption resulting in client and banker =) ha ES & HTL te ° IGNATURE BAN! Klein acquisition opportunities Strong brand and service model = Expanding
Slide 14: With a Commercial Focus
—™~ With a Commercial Focus BRIDGEWATER BANCSHARES, INC. Well-Diversified Loan Portfolio Evolution of Loan Mix by Type Track Record of Successfully Managing CRE Portfolio Above 300% of Bank Capital 2015 1Q22 Ability to consistently supplement the capital stack with capital raises to support continue
Slide 15: Well-Positioned for Continued Growth
Well-Positioned for Continued Growth Opportunities Across Key Portfolios Strategy Growth Outlook 34%0F portfolio $1,013M Y B 52% 28%oF portfolio Ror portfolio BRIDGEWATER BANCSHARES, INC. 12%ot portfolio JPMorgan Chase, agency lenders, local banks and credit unions Local banks, life insurance compan
Slide 16: Deposit Market Share Momentum in the Twin Cities Continues
Deposit Market Share Momentum in the Twin Cities Continues BRIDGEWATER BANCSHARES, INC. raster conser ca can a + Top-heavy deposit market (top 2 market share = 65%) + Top 2 have lost market share each of the last seven years Depocts Markat Depoat= Market (2014: 84% / 2021: 65%) HQ Branches (SM) Shar
Slide 17: Deposit Growth With Improved Mix
Deposit Growth With Improved Mix a Provides Funding for Loan Growth BRIDGEWATER BANCSHARES, INC. Robust Deposit Growth Year-over-Year Deposit Growth * Recent deposit growth drivers include: NIB Transaction Time + New client and banker acquisition 17% (17)% opportunities due to M&A disruption . 1B Tr
Slide 18: Scaling Enterprise Risk Management Across a Growing Organization
—™~ Across a Growing Organization BRIDGEWATER BANCSHARES, INC. Scaling Enterprise Risk Management BWB Risk Management Manage and mitigate dynamic risks while enhancing shareholder value, being responsive to Philosophy clients, and delivering simple solutions in unconventional ways Enterprise Risk Ma
Slide 19: Credit Risk Management Supports Strong Loan Growth Momentum
“_—™' Credit Risk Management Supports Strong Loan Growth Momentum BRIDGEWATER BANCSHARES, INC. Why is BWB comfortable with its consistent pace of loan growth? Consistent Active Credit Oversight Experienced Lending and Monitoring and Credit Teams Underwriting Standards BWB 0.02% 0.15% + Growth contin
Slide 20: Driving Superb Asset Quality
<—™ Driving Superb Asset Quality BRIDGEWATER BANCSHARES, INC. Credit Risk Management and Oversight 2021 increase due to pandemic-related migration of two 5 relationships from Watch to Classified in 4Q21 Sosa eatenen emacs ited Exposure to COV! $22,641 Impacted Sectors (as of March 31, 2022) sig.6t!
Slide 21: Growth Model: Consistent Spread-Based Revenue
=~ Growth Model BRIDGEWATER BANCSHARES, INC. Consistent Spread-Based Revenue YoY Avg. Earning 1922 Net 1922 CoreNet Asset Growth Interest Mar: Interest Margin 19% 3.60% 3.34% Primary revenue source sre70 + Netinterest income growth driven by robust loan growth and strong net interest margin DOS Sow
Slide 22: Among the Most Efficient Banks in the Industry
——™' in the Industry BRIDGEWATER BANCSHARES, INC. Among the Most Efficient Banks An Ei iency Ratio Consistently Well Below Peers What Makes BWB So Efficient’ Efficient Branch-Light Operating Culture Service Model 1.56% ~2x ~4x NiE/average assets? as many assets perFTE Branches as many assets per (pe
Slide 23: Leveraging Technology to Support Growth
Leveraging Technology to Support Growth BRIDGEWATER BANCSHARES, INC. IT Strategy: improve client interactions, streamline processes, IT Decision-Making: driven by unconventional culture, enhancing automate activities, and embrace digital transformation the client experience and improving organizatio
Slide 24: Investments in Technology Continue
“_—™' Investments in Technology Continue Paani BANCSHARES, INC. + Launched an industry-leading Commercial e Ogy expense mix sl loan origination system in March 2022 ‘ + Focuses on the core strength in Commercial lending and client responsiveness + Digitizes the end-to-end lending process + Creates b
Slide 25: Proactive Capital Management
“_—™' Proactive Capital Management BRIDGEWATER BANCSHARES, INC. BWB Capital Priorities Organic Growth Ample room for growth and profitability via strong organic loan growth pipelines Capital Ratios Supported by Profitability and Capital Markets Activity Share Repurchases Proactively return capital t
Slide 26: Putting Excess Liquidity to Work
. . . . ~~ Putting Excess Liquidity to Work Space BRIDGEWATER BANCSHARES, INC. Well-Managed Excess Cashin Current Environment Unpledged Securities FHLB Advances FRB Discount Window Unsecured Lines of Credit Secured Line of Credit Total 2018 2019 2020 2021 1922
Slide 27: 2022 Strategic Priorities
2022 Strategic Priorities — Sa; Building on Our Momentum BRIDGEWATER BANCSHARES, INC. 1Q22 Progress + Generate mid- to high-teens loan growth, excluding PPP loans * Twin Cities organic growth opportunities expected to support growth Continue Balance Sheet to $5 billion in assets in the Twin Cities o
Slide 28: Corporate Strategy Driving Above-Peer Returns and Value Creation
Corporate Strategy Driving Above-Peer Sa; Returns and Value Creation BRIDGEWATER BANCSHARES, INC. Return on Average Assets PPNR Return on Average Assets! Our Culture Driven Organic Growth Story nS Na 2.07 2.09 210 212 Truly Unconventional Culture 97" 8 2018 2019 2020 2021 1022 Highly Efficient Busin
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Slide 30: 1Q22 Earnings Highlights
“_—™' BRIDGEWATER BANCSHARES, INC. Diluted Returnon Return on Avg. Tangible Adjusted EPS Average Assets Common Equity! Efficiency Ratio! $0.39 1.42% 2.12% 14.56% 42.0% 1Q22 Earnings Highlights Robust Loan + Gross loan balances up $168.5 million, or 24.2% annualized from 4Q21 (26.5% ex. PPP) Growth +
Slide 31: Reconciliation of Non-GAAP Financial Measures — Efficiency, TCE, TBV, NIM
Reconciliation of Non-GAAP Financial co Measures — Efficiency, TCE, TBV, NIM BRIDGEWATER BANCSHARES, INC. ‘As of and for the quarter ended, Tangible Common Equtty & ‘arate Conon Cou ‘Tangible Accets ~ March 31, 2022 CoreNet interest Margin
Slide 32: Reconciliation of Non-GAAP Financial Measures — PPNR
Reconciliation of Non-GAAP Financial co Measures — PPNR BRIDGEWATER BANCSHARES, INC. DAMP Seanciimennirs weprosidedbeine The Compe 1@ same calculations for these Less: Debt Prepayment Fees ‘ : (582) " Total Operating Noninterest Expense S m29 CS S375 1S 4635 $ Pre-Provision Net Revenue $ s S$ stems
Slide 33: Reconciliation of Non-GAAP Financial Measures — Diluted EPS, ROA, ROATCE
Reconciliation of Non-GAAP Financial Measures — Diluted EPS, ROA, ROATCE Diluted EPS, ROA & ROATCE Net income Less: Preferred Stock Dividends 2019 __As of and for the year ended, 2020 “_—™' BRIDGEWATER BANCSHARES, INC. pany sons for these Net income Available to Common Shareholders Add: Debt Prepaym
Bridgewater Bancshares — Q1 2022 Earnings Presentation on 6ix