Bridgewater
Bancshares, Inc.
O r o n o
St. Louis Park
M i n n e a p o l i s
G r e e n w o o d
B l o o m i n g t o n
Uptown Minneapolis
Annual Report 2017
Founded By, Funded By and
Focused on Entrepreneurs….
Contents
Letter From Jerry Baack
Financial Highlights
3
4-5
Bridgewater Bank, a subsidiary of Bridgewater Bancshares, Inc., is a full service bank committed to serving
the diverse, individual needs of real estate and small business entrepreneurs. The Bank was formed on
October 31, 2005 and officially opened for business on November 2, 2005 in Bloomington, Minnesota.
Bridgewater Bank’s knowledgeable team has earned the reputation as the premier real estate lender in the
Twin Cities by providing responsive service and simple solutions to an extraordinary network of clients.
Unconventional | Responsive | Dedicated | Growing | Accurate Dear Clients and Shareholders,
It is a pleasure to provide the 2017 annual report for Bridgewater Bancshares, Inc., and its bank subsidiary,
Bridgewater Bank. We are pleased once again to share a continuing story of growth, high efficiency
and financial prosperity. We appreciate having solid partnerships with clients, shareholders and vendors.
This active network provides the foundation for our business to prosper. We sincerely appreciate your
participation in our success and are grateful for the opportunity to serve you. We look forward to building
on the momentum that shareholders, team members and clients have helped the Bank establish.
Financial results have surpassed expectations and year over year results showed considerable increases.
The Bank posted financial returns in 2017 with higher earnings than any of the previous twelve years.
Our assets grew to $1.6 billion and our deposits and loans have grown at a pace that measures well into
the double digits. Since the remodels of our recently acquired branches, we have witnessed an influx of
new clients looking to establish a relationship with a locally owned bank that can provide simple options
and responsive support. We expect the Bank will continue to operate with efficiencies that few banks in
the nation can emulate. With our commitment to invest wisely, manage our margins and develop a talented
team, we believe Bridgewater Bank has the right formula to continue driving future growth.
The Bank achieved several exciting milestones in 2017:
1. Crossed $1.5 billion in assets
2. Ranked as the 8th largest bank headquartered in the State of Minnesota by asset size
3. Closed a private placement of $25 million of subordinated debt
4. Rewarded as a “Best Bank to Work For” by American Banker
5. Announced plans for a new branch in downtown St. Paul
Since inception, the Bank has seen exceptional success. We intend for this trend to continue. Recognized as the
premier real estate lender in the Twin Cities, we plan to increase our market niche among seasoned real estate
entrepreneurs as we pursue other asset classes in our market. We recognize there is an opportunity to expand
our brand and look at new avenues for diversification. We remain committed to maximizing shareholder value,
and we intend to achieve this by delivering the same exceptional service without sacrificing earnings.
As always, I remain appreciative of the efforts of the Bridgewater Bank team: the staff, directors and
shareholders. Together, we will continue to drive growth and increase your share value. It is a pleasure to be
building your Bank.
Jerry Baack
Chairman of the Board
3
Financial Highlights
Pre-Tax Net Income
$28,000,000
$24,000,000
$20,000,000
$16,000,000
$12,000,000
$8,000,000
$4,000,000
$0
2013
2014
2015
2016
2017
Pre-Tax Net Income
Total Loans
$1,600,000,000
$1,400,000,000
$1,200,000,000
$1,000,000,000
$800,000,000
$600,000,000
$400,000,000
$200,000,000
Total Deposits
$1,600,000,000
$1,400,000,000
$1,200,000,000
$1,000,000,000
$800,000,000
$600,000,000
$400,000,000
$200,000,000
2013
2014
2015
2016
2017
Total Loans
2013
2014
2015
2016
2017
Total Deposits
Financial Performance and Growth
For the year-ended December 31, 2017, Bridgewater Bancshares, Inc. earned pre-tax net income of $27.0
million, up 27% over 2016. The Company achieved another year of record financial performance while
sustaining growth across all facets of the organization.
Total consolidated assets reached $1.6 billion as of December 31, 2017, which reflected $356.2 million in asset
growth during 2017. This 28% growth in assets was driven by our largest earning asset, our loan portfolio,
which reached $1.3 billion with $341.4 million or 35% in growth year-over-year. While real estate lending
continues to be our niche and the primary source of loan growth in 2017, we continue to diversify our loan
portfolio within different types of real estate, as well as a broadening our exposure in other asset classes such
as commercial and industrial.
4
Bridgewater Bancshares, Inc. $1,700,000,000
$1,500,000,000
$1,300,000,000
$1,100,000,000
$900,000,000
$700,000,000
$500,000,000
$800,000,000
$700,000,000
$600,000,000
$500,000,000
$400,000,000
$300,000,000
$200,000,000
$100,000,000
$20,000,000
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
Total Assets
Total Loans Originated
($ Volume)
Total Classified Assets
Total Assets
2013
2014
2015
2016
2017
Total Loans Originated ($ Volume)
2013
2014
2015
2016
2017
Total Classified Assets
2013
2014
2015
2016
2017
As the economy continues to improve, the Bank has worked diligently and continues to experience a reduction
in its nonperforming assets. At December 31, 2017, total nonperforming assets represented only 4% of total
capital, an indication of strong asset quality.
On the liability side of the balance sheet, deposits were $1.3 billion, increasing $315.8 million or 31% as of
December 31, 2017 compared to December 31, 2016. The extraordinary growth is a testament to our strategic
branch network and enhancement of our deposit product platform. With such earnings momentum and solid
capital levels, we are well positioned to continue strong growth and earnings in 2018.
5
Bridgewater Bancshares, Inc. Client Profiles
Our clients say it best...
Contents
2nd Swing
ALL, Inc.
Minnesota Multi Housing Association
Pizza Lucé
Real Estate Equities
Core Values
7
8
9
10
11
12-13
Unconventional | Responsive | Dedicated | Growing | Accurate Earnings are up 28%
“Bridgewater has
been with us since
the very start.
Their team has
taken the time
to get to know
our business and
needs, and that
is something that
our small business
requires – a true
partner.”
2nd Swing
2nd Swing Golf is a Minneapolis-based specialty retailer of both new and used golf equipment and accessories.
A small, family-owned business, 2nd Swing was founded in 2006 and in addition to 2ndswing.com, the
company has two retail locations in the Minneapolis area, one in Scottsdale, Arizona, and a new store set to
open soon in the Philadelphia market.
Owners Simon Kallal and Russ Higgins first met playing golf together at the University of Minnesota, and have
since grown their business to 115 employees. With more than 50,000 golf clubs to choose from in store and
online, the latest in fitting technology, and a dedicated staff that is committed to making the game more fun,
2nd Swing has all the resources that any golfer needs. Since its inception, 2nd Swing has received numerous
fitting awards from the likes of PING, TaylorMade, Mizuno, Cobra and many others. 2nd Swing has won the
prestigious Golf Digest Top-100 Fitter award each year from 2013-17.
7
Client Profiles
“Customer
satisfaction is our
core principal and
number one goal.
Bridgewater Bank
allows us to be
flexible, ensuring
we provide the very
best experience to
our customers.”
ALL, Inc.
ALL, Inc. is one of the largest distributors of appliances and cabinets for apartment management companies,
single-family and multi-family developers, remodelers, and walk-in retail consumers in the Midwest. They
celebrated their 70th anniversary in 2017 with over $2 million of available inventory to service multi-family
housing needs. Their 28,000-square-foot showroom is the largest and most extensive collection of kitchen
appliances and cabinets in the Midwest.
ALL, Inc. has built a reputation that includes a high level of service. They are committed to customer
satisfaction and strive to surpass expectations. With over 1,000 appliances and over a dozen live kitchens on
display, ALL, Inc. is a regional destination for home kitchen products.
8
Bridgewater Bancshares, Inc. Assets Grew by 28%
“Making the switch to Bridgewater Bank was one of the best decisions we’ve made. They have streamlined
our procedures and have provided technical expertise. Their excellent customer service makes it feel like they
are partners in our success.”
Minnesota Multi Housing Association
The Minnesota Multi Housing Association (MHA) was founded in 1967 to promote the highest standards in
the development, management and maintenance of rental and owner-occupied multi housing. While members
include the state’s largest apartment management companies, developers, common interest communities, and
providers of related products and services, the majority of their members own or manage fewer than 20 units
each. All members of the MHA commit themselves to the ethical principles and standards of the MHA’s.
9
Client Profiles
“The level of service
we receive from
Bridgewater Bank
is second to none.
Working directly
with a person instead
of a 1-800 number
reaffirms that they are
the right fit for us.”
Pizza Lucé
Pizza Lucé, a Minneapolis based pizzeria, has been a neighborhood go-to since it was founded in 1993. What
once began as a humble pizza slice counter, has grown into one of Minnesota’s most recognizable pizza
brands. Now with seven restaurants spanning the Twin Cities, as well as one in Duluth, they plan to open a
ninth location in Eden Prairie in the summer of 2018.
Their award-winning and innovative hand-tossed pizzas range from varieties like the Fire Breathing Dragon
to the fan-favorite Baked Potato pizza. With gluten-free and vegan options, there’s sure to be something for
everyone. In 2011, Pizza Lucé was named Restaurant of the Year by the Minnesota Restaurant Association.
10
Bridgewater Bancshares, Inc. Loans Grew by 35%
“Bridgewater Bank
is unique in their
ability to understand
transactions from
the business owner’s
perspective. Their
high level of service,
professionalism
and ease of doing
business has us
looking forward to
this partnership for
many years to come.”
Real Estate Equities
Real Estate Equities (REE) is one of the leading property management companies in the Twin Cities. Their
mission is to provide housing, strengthen a sense of community and enhance the lives of their renters and
team members. As they work within the financial constraints imposed by a competitive housing industry, their
unparalleled enthusiasm, deep expertise and great team allow them to focus on satisfying residents’ evolving needs.
Since its founding in 1972, REE has managed apartment communities throughout the Twin Cities and
Minnesota, as well as in Wisconsin, Ohio, Missouri, South Dakota and Indiana. They manage over 3,800 units
across 42 different properties. They pride themselves on supporting the community through various school
supply, food, clothing and toy drives.
11
Core Values
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.
12
Our People are our strength
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.
Darci Parent
Client Specialist| Team member since 2013
Known for her beaming smile and positive aura, Darci is the face of the Bank. She engages
in warm conversation with each client that walks through our doors. Her product knowledge
paired with a knack for connecting with others (while sharing a little humor along the way)
provides a truly unconventional experience, a given here at BWB. They say a positive attitude
is contagious, and we think Darci’s attitude is one worth catching.
Beth Shipman
Vice President of Compliance | Team member since 2016
Some organizations spend time checking and others spend time doing. Beth simply gets it – at
Bridgewater Bank we are all doers. While her position may dictate that she ensures standards
are met, she makes sure to be a partner and not a roadblock. Beth’s clients are internal, but her
expertise and decisiveness positively impact how we do business with all Bank clients.
Ben Klocke
General Counsel | Team member since 2017
Despite joining Bridgewater with limited banking experience, Ben didn’t let that stop him
from becoming a dependable resource to the entire BWB team. With a can-do spirit and
years of legal practice experience, he developed the knowledge to help guide the Bank
through several large strategic initiatives, including the private placement of $25 million in
subordinated notes in 2017. With this kind of speedy ramp in, it’s evident Ben doesn’t let the
clock (or should we say Klocke) dictate the amount of effort he is willing to put forward.
Greg Johnson
Account Executive| Team member since 2016
After the 2016 acquisition of First National Bank of the Lakes, Greg found himself
entirely immersed by new surroundings. But where some may see adversity, Greg only saw
opportunity. Greg quickly adapted to new clientele, new team members and a collection of
new processes, all without losing focus on taking care of BWB clients. It is this approach that
has made him a client favorite not only before the acquisition, but every day since.
Laura Espeseth
Vice President, Funds Management| Team member since 2017
A career track in finance is perfectly befit for someone with attention to detail. With a
keen ability to understand and analyze numbers, Laura is an excellent asset to the Finance
team. Her public accounting background has contributed new knowledge, introduced new
efficiencies and recommended additional talent that could be added to the already strong
team. Now that’s an accurate representation of Laura.
Our People are our strength
13
Bridgewater Bancshares, Inc.
Products & Services
Responsive support.
Simple solutions.
Contents
Personal Banking & Business Banking
Loan Portfolio & Deposit Portfolio
Lending
15
16
17
Bridgewater Bancshares, Inc. Unconventional | Responsive | Dedicated | Growing | Accurate Deposits up 31%
Client Services
• Competitive Checking & Savings
• Popmoney Payments Service
Deposit Products
• Certificates of Deposit/IRAs
• Personal Debit & Credit Cards
• Personal Online Banking
• Personal Mobile Banking
• Online Bill Pay Service
• Wiring Services
• Notary Services
• Foreign Currency Exchange
Personal Banking
Bridgewater Bank’s knowledgeable Deposit Services Team provides personalized, professional and responsive
service. A full suite of deposit products is offered specifically designed to meet the unique needs of our
entrepreneurial client base. Dealing directly with our Account Executives, clients avoid automated answering
services and long teller lines. Responsive support and simple solutions!
Business Services
• Analyzed Checking Accounts
• Online Wire Transfer Services
• Business Debit & Credit Cards
• Business Online Bill Pay
• Business Online Banking
• Check Positive Pay
• Business Mobile Banking
• ACH Blocking
• Remote Deposit Services
• Merchant Card Services
• ACH Services
Business Banking
Bridgewater Bank’s dedicated Business Services Team offers responsive support and simple solutions
for the many business clients that call Bridgewater Bank home. The experienced team enjoys developing
relationships and supporting many of the enhanced products that businesses need to operate efficiently in
today’s marketplace. Simply put, our goal is to simplify banking, allowing our clients to focus on their business.
15
Bridgewater Bancshares, Inc.
Products & Services
Deposit Portfolio
7%
9%
36%
21%
27%
Personal Savings
Personal Checking
Business Savings
Business Checking
Certificates of Deposit
Loan Portfolio
Owner Occupied Commercial Real Estate
15%
5%
Non Farm/Non Residential
Construction and Development
Commercial and Industrial
Multi Family
1-4 Family
24%
30%
16%
10%
16
Bridgewater Bancshares, Inc. Total Equity Capital Up 19%
Lending
Construction &
Development
• Property Rehabilitation
• New Construction
• Lot Financing
• Land Development
Multi-Family Lending
• Apartment Financing
• Tax Credit Bridge Loans
Commercial & Industrial
• Receivables and Inventory
Financing
Residential Real Estate
• Equipment Acquisition
• Owner Occupied Homes
• Vacation Homes
• Residential Rental Homes
• Lease Financing
• SBA Financing
• Home Equity Lines of Credit
Consumer Loans
• Construction/Bridge Loans
• Executive Lines of Credit
• Stock/Bond Secured Loans
Commercial Real Estate
• Auto Financing
• Office Buildings
• Retail Strip Centers
• Industrial Properties
• Mixed-Use Buildings
• Recreational Vehicles
• Overdraft Lines of Credit
Agriculture
• Agricultural Real Estate
Lending
As the premier real estate lender in the Twin Cities, Bridgewater Bank’s loan products were assembled to meet
the distinctive needs of the real estate and small business entrepreneurs. Our Lenders are experts in the markets
we serve. Together we realize that flexibility and quick responses are integral to ensuring our clients’ success.
17
Bridgewater Bancshares, Inc. Financial Summary
Entrepreneurial with an
Owner’s Perspective.
Contents
Consolidated Statement of Income
Consolidated Balance Sheet
Stockholders’ Equity
Directors
19
20
21
22-23
Bridgewater Bancshares, Inc. Unconventional | Responsive | Dedicated | Growing | Accurate Bridgewater Bancshares, Inc.
Consolidated Statements of Income
(Unaudited)
INTEREST INCOME
Loans, Including Fees
Investment Securities
Other
Total Interest Income
INTEREST EXPENSE
Deposits
Notes Payable
Federal Home Loan Bank Advances
Subordinated Debt
Federal Funds Purchased
Total Interest Expense
NET INTEREST INCOME
PROVISION FOR LOAN LOSSES
NET INTEREST INCOME, AFTER PROVISION FOR LOAN LOSSES
NONINTEREST INCOME
Customer Service Fees
Net Gain (Loss) on Sales of Available for Sale Securities
Net Gain (Loss) on Sales of Foreclosed Assets
Other Income
Total Noninterest Income
NONINTEREST EXPENSE
Salaries and Employee Benefits
Occupancy
Data Processing
Other
Total Noninterest Expense
INCOME BEFORE INCOME TAXES
PROVISION FOR INCOME TAXES
NET INCOME
*Dollars in thousands, except share amounts
2017
$60,024
5,981
341
66,346
9,719
656
880
749
169
12,173
54,173
4,175
49,998
660
(250)
356
1,770
2,536
14,051
2,192
592
8,661
25,496
27,038
10,149
$16,889
2016
$46,622
3,649
361
50,362
6,955
718
769
16
56
8,514
42,118
3,250
38,868
490
830
(30)
1,277
2,567
12,087
1,821
667
5,593
20,168
21,267
8,052
$13,215
19
Bridgewater Bancshares, Inc. Financial Summary
Consolidated Balance Sheets
(Unaudited)
Assets
Cash and Cash Equivalents
Bank Owned Certificates of Deposit
Securities Available for Sale at Fair Value
Loans, Net of Allowance for Loan Losses of $16,502
in 2017 and $12,333 in 2016
Federal Home Loan Bank (FHLB) Stock, at Cost
Premises and Equipment, Net
Foreclosed Assets
Accrued Interest
Goodwill
Other Intangible Assets
Other Assets
Total Assets
LIABILITIES AND EQUITY
Deposits:
Noninterest-Bearing
Interest-Bearing
Total Deposits
Federal Funds Purchased
Notes Payable
Federal Home Loan Bank Advances
Subordinated Debtures, Net of Issuance Costs
Accrued Interest Payable
Other Liabilities
Total Liabilities
STOCKHOLDERS' EQUITY
Common Stock, $0.01 Par Value
Voting Common Stock - Authorized 75,000,000;
Issued and Outstanding - 20,834,001 at 2017 and 20,744,001 at 2016
Nonvoting Common Stock - Authorized 10,000,000
Issued and Outstanding - 3,845,860 at 2017 and 2016
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Total Shareholders' Equity
TOTAL LIABILITIES AND EQUITY
*Dollars in thousands, except share amounts
20
2017
$23,725
3,072
229,491
1,326,507
5,147
10,115
581
5,342
2,626
1,243
8,763
$1,616,612
$292,539
1,046,811
1,339,350
23,000
17,000
68,000
24,527
1,408
6,165
2016
$16,499
4,699
217,083
985,140
4,990
9,574
4,183
3,953
2,626
1,434
10,213
$1,260,394
$238,062
785,446
1,023,508
44,000
19,000
53,000
-
612
4,908
1,479,450
1,145,028
208
38
66,324
69,508
1,084
137,162
$1,616,612
207
38
65,777
52,619
(3,275)
115,366
$1,260,394
Bridgewater Bancshares, Inc.
Assets
Cash and Cash Equivalents
Bank Owned Certificates of Deposit
Securities Available for Sale at Fair Value
Loans, Net of Allowance for Loan Losses of $16,502
in 2017 and $12,333 in 2016
Federal Home Loan Bank (FHLB) Stock, at Cost
Premises and Equipment, Net
Foreclosed Assets
Accrued Interest
Goodwill
Other Intangible Assets
Other Assets
Total Assets
LIABILITIES AND EQUITY
Deposits:
Noninterest-Bearing
Interest-Bearing
Total Deposits
Federal Funds Purchased
Notes Payable
Federal Home Loan Bank Advances
Subordinated Debtures, Net of Issuance Costs
Accrued Interest Payable
Other Liabilities
Total Liabilities
STOCKHOLDERS' EQUITY
Common Stock, $0.01 Par Value
Voting Common Stock - Authorized 75,000,000;
Issued and Outstanding - 20,834,001 at 2017 and 20,744,001 at 2016
Nonvoting Common Stock - Authorized 10,000,000
Issued and Outstanding - 3,845,860 at 2017 and 2016
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Total Shareholders' Equity
TOTAL LIABILITIES AND EQUITY
2017
$23,725
3,072
229,491
1,326,507
5,147
10,115
581
5,342
2,626
1,243
8,763
$1,616,612
$292,539
1,046,811
1,339,350
23,000
17,000
68,000
24,527
1,408
6,165
208
38
66,324
69,508
1,084
137,162
$1,616,612
2016
$16,499
4,699
217,083
985,140
4,990
9,574
4,183
3,953
2,626
1,434
10,213
$1,260,394
$238,062
785,446
1,023,508
44,000
19,000
53,000
-
612
4,908
207
38
65,777
52,619
(3,275)
115,366
$1,260,394
1,479,450
1,145,028
Consolidated Stockholders’ Equity
(Unaudited)
BALANCE, DECEMBER 31, 2015 17,633,026
2,186,323
$176
$22
$39,648
$39,404
$928
$80,178
Shares
Common Stock
Voting
Nonvoting
Voting
Nonvoting
Additional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Total
Stock-based Compensation
Comprehensive Income (Loss)
-
-
Stock Options Exercised
100,000
-
-
-
Issuance of Common Stock, Net
of Issuance Costs
Redemption and Cancellation of
Common Stock
3,049,368
1,659,537
(38,393)
-
BALANCE, DECEMBER 31, 2016 20,744,001
3,845,860
Stock-based Compensation
Comprehensive Income
Stock Options Exercised
-
-
90,000
-
-
-
-
-
1
30
-
207
-
-
1
-
-
-
16
-
38
-
-
-
368
-
179
BALANCE, DECEMBER 31, 2017 20,834,001
3,845,860
$208
$38
$66,324
*Dollars in thousands, except share amounts
After Tax Return on Equity - 13.18%
Earnings Per Share - $0.69
Diluted Earnings Per Share - $0.68
Tangible Book Value Per Share - $5.40
222
-
99
26,000
(192)
-
-
13,215
(4,203)
-
-
-
-
-
-
222
9,012
100
26,046
(192)
65,777
52,619
(3,275)
115,366
-
16,889
-
$69,508
-
4,359
-
$1,084
368
21,248
180
$137,162
21
Bridgewater Bancshares, Inc.
Directors
Jerry Baack
President and Chief Executive Officer, Chairman of the Board
As the principal founder of the Company and the Bank, Mr. Baack was responsible for all
aspects of the Bank’s formation; including, the initial capital raise, business plan, board and
management team structure and recruitment, charter and regulatory approval. He currently
serves as Chairman of the Board, Chief Executive Officer and President of the Company,
positions he has held since the Bank was founded in 2005. As the chief visionary and strategist,
Mr. Baack plays a vital role in business development and is instrumental in defining strategic
initiatives and ascertaining new opportunities for growth. Mr. Baack drives all decisions
regarding mergers and acquisitions, capital management and diversification. Prior to establishing
Bridgewater Bank in 2005, Mr. Baack held positions at Commerce Bank, First State Bank of
Excelsior (nka Beacon Bank), Hampton Bank (nka Merchants Bank). He began his career as
a bank examiner with the Federal Deposit Insurance Corporation in 1990, where he worked
for over seven years. He has over 25 years of commercial banking and regulatory experience.
As a result of the Bank’s continued success, Mr. Baack was awarded Banker of the Year by
Northwestern Financial Review in 2017. Additionally, Mr. Baack was recognized as a nominee for
the 2017 Entrepreneur of the Year award by Ernst & Young. Mr. Baack received his B.S. from
Minnesota State University in 1989 and Graduate School of Banking at University of Colorado,
Boulder in 2001.
David Juran
Director
Mr. Juran, a member of the Bridgewater Bank Board since 2010, is the Executive Vice President
of Dougherty & Company LLC, a full-service investment bank and brokerage firm founded
in 1997. He has been with his company since 2002 and is also a member of the Board of
Directors of Dougherty Financial Group LLC, President of Dougherty Funding LLC, President
of Dougherty Equipment Finance LLC, Chief Executive Officer of Dougherty Real Estate
Advisors LLC and President and Chief Operating Officer of Dougherty Mortgage LLC.
Dougherty Mortgage LLC specializes in financing market rate, affordable and senior housing
throughout the United States. Prior to joining Dougherty & Company, Mr. Juran served as Senior
Vice President of a regional investment banking firm for over 14 years. Mr. Juran serves on the
board of several non-profits, including Summit Academy and Minnesota Attainable Housing.
He received his B.S. from the University of St. Thomas and is fully licensed under NASD Series
7 and 63. His particular expertise in programs supporting the creation of multifamily housing,
assisted living and affordable housing coupled with his knowledge of lending through HUD,
GNMA and Fannie Mac provides the Board with solid insights into these unique market areas.
Todd B. Urness
Director
Mr. Urness is a founding director of the board. He is a shareholder at the law firm of Winthrop
& Weinstine, P.A., an 135 lawyer general practice firm located in Minneapolis, Minnesota. Mr.
Urness has practiced with Winthrop & Weinstine since 1985 and has been a shareholder with the
firm since 1988. He has served on the Board of Directors of Winthrop & Weinstine as well as
its senior management and compensation committees since 1993. In addition, he is the practice
leader for the law firm’s real estate group. Mr. Urness serves on the Bank’s Audit Committee.
He holds a B.A. from Gustavus Adolphus College and a J.D. from the University Of Minnesota
School of Law. In addition, Mr. Urness is a Certified Public Accountant and a member of the
Minnesota Bar. Mr. Urness’ involvement in real estate also expands to the development and
ownership of several local real estate projects, primarily multifamily housing.
Jeffrey D. Shellberg
Executive Vice President and Chief Credit Officer, Director
Mr. Shellberg is a founder of the Company and founding director of the board. He has worked
in the regulatory and commercial banking industry for over 30 years. As Executive Vice President
and Chief Credit Officer, Mr. Shellberg is responsible for all aspects of the Bank’s credit policies
and risk management systems. Mr. Shellberg’s extensive experience in community banking includes
strategic planning, policy formation, risk management, asset and liability management, as well as
external/internal audit. Prior to joining Bridgewater Bank, Mr. Shellberg was Senior Vice President
of Klein Bank and began his banking career at the FDIC in 1985, where he worked for 15 years. He
is a frequent guest panelist at commercial real estate forums across the Twin Cities. Mr. Shellberg
received his B.S. from Iowa State University and is an alumnus of the Graduate School of Banking
at Colorado, Boulder.
Thomas P. Trutna
Director
Mr. Trutna is a founding director of the board. He is the President and Founder of BIG INK,
a visual communications company that creates branded solutions for Fortune 1000 companies,
an organization he has run since 1999. Prior to founding BIG INK, Mr. Trutna held marketing
and business management positions at General Mills and Periscope, a Twin cities advertising
firm. Mr. Trutna serves as Past President of the Minnesota Chapter Entrepreneurs’ Organization
and is a frequent guest lecturer for entrepreneurial classes and professional organizations across
the Twin Cities. He also serves as Chair of the Bank’s Audit Committee. Mr. Trutna received his
B.S. from Minnesota State University, Mankato. Mr. Trutna’ s reputation in the E.O. community
provides unique networking opportunities for the Bank. As a lifelong resident of St. Paul his
connections will be invaluable as the Bank pursues this new geographic market.
James S. Johnson
Director
Mr. Johnson is a founding director of the board. He is a franchise owner of Flagship Marketing,
Inc., a privately-held company that operates as Express Employment Professionals (Express) and
Specialized Recruiting Group (SRG), which both deliver staffing support and human resource
services through a network of franchise office owners. Since 1994, Mr. Johnson’s franchises in
the Twin Cities have focused primarily in the office services, light industrial and professional
staffing segments. Mr. Johnson sits on the board for the Minnesota Recruiting and Staffing
Association where he is the immediate Past Chair. He has experience serving as director of
other organizations, including Gillette Children’s Specialty Healthcare. He currently serves as
a member of the Bank’s Audit Committee. Mr. Johnson received his B.A. and B.S. from Iowa
State University. As a prominent business owner and long standing resident of Minnesota, Mr.
Johnson has significant ties to other local business leaders.
David J. Volk
Director
Mr. Volk is a principal at Castle Creek Capital, an alternative asset management firm focused on
the community banking industry located in Rancho Santa Fe, California. He has been with Castle
Creek Capital since 2005 and has led or supported investments in numerous recapitalization,
distressed, and growth situations. Prior to joining the firm, he worked as an associate with TW
Associates Capital, Inc. and Ernst & Young. Mr. Volk currently serves as a director of multiple
banking institutions, including Bank of Southern California and New Mexico First Financial.
Mr. Volk holds a B.S. from Santa Clara University and an M.S. from the University of Virginia.
Mr. Volk joined the board in 2017 and has extensive financial institution experience in strategic
planning, operational improvements, acquisitions, and capital financing.
Unconventional | Responsive | Dedicated | Growing | Accurate Bank Officers
Jerry Baack
President and Chief Executive Officer
Mary Jayne Crocker
Executive Vice President and Chief Operating Officer
Jeff Shellberg
Executive Vice President and Chief Credit Officer
Joe Chybowski
Senior Vice President and Chief Financial Officer
Nicholas Place
Senior Vice President and Chief Lending Officer
Rachael Petersen
Senior Vice President, Internal Audit
Dan Poppe
Senior Vice President, Commercial Lending
Andrew Bates
Vice President, Commercial Lending
Deb Beise
Vice President, Branch Operations
Adam Benjamin
Vice President, Client Services
Anna Berge
Vice President, Technology Services
Pat Cullen
Vice President, Commercial Lending
Craig Dose
Vice President, Operations
Adam Erickson
Vice President, Commercial Lending
Laura Espeseth
Vice President, Funds Management
John Haertzen
Vice President, Credit Administration
Julie Jensen
Vice President, Loan Review
Thomas Johnson
Vice President, Construction Lending
Ben Klocke
General Counsel
Tyler Manning
Vice President, Commercial Lending
Jordan Marriott
Vice President, Commercial Lending
Lynn Roth
Vice President, Commercial Lending
Beth Shipman
Vice President, Compliance
Marti Stone
Vice President, Loan Administration
Ross Wieser
Vice President, Commercial Lending
Bridgewater
Bancshares, Inc.
Corporate Office
Bloomington
3800 American Blvd. West, Suite 100
Bloomington, MN 55431
Phone 952.893.6868
BridgewaterBankMN.com
©2018 Bridgewater Bank. All rights reserved.
Member
FDIC