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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended March 31, 2022

OR

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

For the transition period from ____________ to ________

Commission File Number 001-38412

BRIDGEWATER BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

Minnesota
(State or other jurisdiction of
incorporation or organization)

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)

(952893-6868

(Registrant’s telephone number, including area code)

. 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 

Depositary Shares, each representing a 1/100th interest in a share of 5.875% Non-Cumulative Perpetual Preferred Stock, Series A, par value $0.01 per share

BWBBP

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

  

Smaller reporting company

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.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No 

The number of shares of the Common Stock outstanding as of May 2, 2022 was 27,975,443.

Table of Contents

PART I FINANCIAL INFORMATION

3

Item 1. Consolidated Financial Statements (unaudited)

3

Consolidated Balance Sheets

3

Consolidated Statements of Income

4

Consolidated Statements of Comprehensive Income

5

Consolidated Statements of Shareholders’ Equity

6

Consolidated Statements of Cash Flows

7

Notes to Consolidated Financial Statements

8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

29

Item 3. Quantitative and Qualitative Disclosures About Market Risk

57

Item 4. Controls and Procedures

59

PART II OTHER INFORMATION

59

Item 1. Legal Proceedings

59

Item 1A. Risk Factors

59

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

60

Item 3. Defaults Upon Senior Securities

60

Item 4. Mine Safety Disclosures

60

Item 5. Other Information

61

Item 6. Exhibits

61

SIGNATURES

62

2

PART 1 – FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

Bridgewater Bancshares, Inc. and Subsidiaries

Consolidated Balance Sheets

(dollars in thousands, except share data)

March 31, 

December 31, 

    

2022

    

2021

(Unaudited)

ASSETS

Cash and Cash Equivalents

$

71,887

$

143,473

Bank-Owned Certificates of Deposit

 

1,139

 

1,876

Securities Available for Sale, at Fair Value

 

459,090

 

439,362

Loans, Net of Allowance for Loan Losses of $41,692 at March 31, 2022 (unaudited) and $40,020 at December 31, 2021

2,937,210

 

2,769,917

Federal Home Loan Bank (FHLB) Stock, at Cost

 

6,846

 

5,242

Premises and Equipment, Net

 

49,044

 

49,395

Accrued Interest

 

9,596

 

9,186

Goodwill

 

2,626

 

2,626

Other Intangible Assets, Net

 

431

 

479

Other Assets

 

70,051

 

56,103

Total Assets

$

3,607,920

$

3,477,659

LIABILITIES AND EQUITY

 

  

 

  

LIABILITIES

 

  

 

  

Deposits:

 

  

 

  

Noninterest Bearing

$

835,482

$

875,084

Interest Bearing

 

2,200,129

 

2,071,153

Total Deposits

 

3,035,611

 

2,946,237

Federal Funds Purchased

 

23,000

 

FHLB Advances

 

42,500

 

42,500

Subordinated Debentures, Net of Issuance Costs

 

92,349

 

92,239

Accrued Interest Payable

 

1,576

 

1,409

Other Liabilities

 

33,443

 

16,002

Total Liabilities

 

3,228,479

 

3,098,387

SHAREHOLDERS' EQUITY

 

  

 

  

Preferred Stock- $0.01 par value; Authorized 10,000,000

Preferred Stock - Issued and Outstanding 27,600 Series A shares ($2,500 liquidation preference) at March 31, 2022 (unaudited) and December 31, 2021

66,514

 

66,514

Common Stock- $0.01 par value; Authorized 75,000,000

 

 

Common Stock - Issued and Outstanding 28,150,389 at March 31, 2022 (unaudited) and 28,206,566 at December 31, 2021

282

 

282

Additional Paid-In Capital

 

103,756

 

104,123

Retained Earnings

 

210,596

 

199,347

Accumulated Other Comprehensive Income (Loss)

 

(1,707)

 

9,006

Total Shareholders' Equity

 

379,441

 

379,272

Total Liabilities and Equity

$

3,607,920

$

3,477,659

See accompanying notes to consolidated financial statements.

3

Bridgewater Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income

(dollars in thousands, except per share data)

(Unaudited)

Three Months Ended

March 31, 

March 31, 

    

2022

    

2021

INTEREST INCOME

 

  

 

  

Loans, Including Fees

$

31,744

$

27,908

Investment Securities

 

2,870

 

2,420

Other

 

80

 

112

Total Interest Income

 

34,694

 

30,440

INTEREST EXPENSE

 

 

Deposits

 

3,158

 

3,671

Notes Payable

 

 

61

FHLB Advances

 

150

 

228

Subordinated Debentures

 

1,197

 

1,085

Federal Funds Purchased

 

9

 

Total Interest Expense

 

4,514

 

5,045

NET INTEREST INCOME

 

30,180

 

25,395

Provision for Loan Losses

 

1,675

 

1,100

NET INTEREST INCOME AFTER

 

  

 

  

PROVISION FOR LOAN LOSSES

 

28,505

 

24,295

NONINTEREST INCOME

 

  

 

  

Customer Service Fees

 

281

234

Other Income

 

1,276

774

Total Noninterest Income

 

1,557

 

1,008

NONINTEREST EXPENSE

 

  

 

  

Salaries and Employee Benefits

 

8,694

7,102

Occupancy and Equipment

 

1,085

1,055

Other Expense

 

3,729

2,766

Total Noninterest Expense

 

13,508

 

10,923

INCOME BEFORE INCOME TAXES

 

16,554

 

14,380

Provision for Income Taxes

 

4,292

 

3,709

NET INCOME

12,262

10,671

Preferred Stock Dividends

(1,013)

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$

11,249

$

10,671

EARNINGS PER SHARE

 

  

 

  

Basic

$

0.40

$

0.38

Diluted

0.39

0.37

See accompanying notes to consolidated financial statements.

4

Bridgewater Bancshares, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

(dollars in thousands)

(Unaudited)

Three Months Ended

March 31, 

    

2022

    

2021

Net Income

$

12,262

$

10,671

Other Comprehensive Income (Loss):

 

Unrealized Losses on Available for Sale Securities

(23,013)

(2,516)

Unrealized Gains on Cash Flow Hedges

9,029

5,605

Reclassification Adjustment for Losses Realized in Income

423

328

Income Tax Impact

2,848

(695)

Total Other Comprehensive Income (Loss), Net of Tax

(10,713)

2,722

Comprehensive Income

$

1,549

$

13,393

See accompanying notes to consolidated financial statements.

5

Bridgewater Bancshares, Inc. and Subsidiaries

Consolidated Statements of Shareholders’ Equity

Three Months Ended March 31, 2022 and 2021

(dollars in thousands, except share data)

(Unaudited)

Accumulated

Additional

Other

Preferred

Common Stock

Paid-In

Retained

Comprehensive

Three Months Ended

Stock

    

Shares

    

Amount

    

Capital

    

Earnings

    

Income (Loss)

    

Total

BALANCE December 31, 2020

 

$

28,143,493

$

281

$

103,714

$

154,831

$

6,579

$

265,405

Stock-based Compensation

 

5,008

574

 

574

Comprehensive Income

 

10,671

2,722

 

13,393

Stock Options Exercised

1,400

12

12

Stock Repurchases

(16,618)

(208)

(208)

Issuance of Restricted Stock Awards

Restricted Shares Withheld for Taxes

(354)

(5)

(5)

BALANCE March 31, 2021

 

$

28,132,929

$

281

$

104,087

$

165,502

$

9,301

$

279,171

BALANCE December 31, 2021

 

$

66,514

28,206,566

$

282

$

104,123

$

199,347

$

9,006

$

379,272

Stock-based Compensation

 

4,656

831

 

831

Comprehensive Income (Loss)

 

12,262

(10,713)

 

1,549

Stock Options Exercised

10,000

21

21

Stock Repurchases

(71,038)

(1,203)

(1,203)

Forfeiture of Restricted Stock Awards

(400)

(1)

(1)

Vested Restricted Stock Units

1,500

Restricted Shares Withheld for Taxes

(895)

(15)

(15)

Preferred Stock Dividend

(1,013)

(1,013)

BALANCE March 31, 2022

 

$

66,514

28,150,389

$

282

$

103,756

$

210,596

$

(1,707)

$

379,441

See accompanying notes to consolidated financial statements.

6

Bridgewater Bancshares, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(dollars in thousands)

(Unaudited)

Three Months Ended

March 31, 

2022

2021

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income

$

12,262

$

10,671

Adjustments to Reconcile Net Income to Net Cash

 

 

Provided by Operating Activities:

 

 

Net Amortization on Securities Available for Sale

 

681

 

814

Provision for Loan Losses

 

1,675

 

1,100

Depreciation of Premises and Equipment

 

628

 

554

Amortization of Other Intangible Assets

 

48

 

48

Amortization of Subordinated Debt Issuance Costs

110

87

Stock-based Compensation

 

831

 

574

Changes in Operating Assets and Liabilities:

 

 

Accrued Interest Receivable and Other Assets

 

(1,377)

 

1,141

Accrued Interest Payable and Other Liabilities

 

16,423

 

6,295

Net Cash Provided by Operating Activities

 

31,281

 

21,284

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

Decrease in Bank-Owned Certificates of Deposit

 

737

491

Proceeds from Sales of Securities Available for Sale

 

1,650

Proceeds from Maturities, Paydowns, Payups and Calls of Securities Available for Sale

 

8,531

8,838

Purchases of Securities Available for Sale

 

(51,449)

(18,674)

Net Increase in Loans

 

(168,968)

(97,527)

Net Increase in FHLB Stock

 

(1,604)

(793)

Purchases of Premises and Equipment

 

(277)

(864)

Net Cash Used in Investing Activities

(213,030)

 

(106,879)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

Net Increase in Deposits

 

89,374

137,017

Net Increase in Federal Funds Purchased

23,000

Principal Payments on Notes Payable

 

(11,000)

Preferred Stock Dividends Paid

(1,013)

Stock Options Exercised

21

12

Stock Repurchases

(1,203)

(208)

Forfeiture of Restricted Stock Awards

(1)

Shares Repurchased for Tax Withholdings Upon Vesting of Restricted Stock-Based Awards

(15)

(5)

Net Cash Provided by Financing Activities

 

110,163

 

125,816

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

(71,586)

 

40,221

Cash and Cash Equivalents Beginning

 

143,473

 

160,675

Cash and Cash Equivalents Ending

$

71,887

$

200,896

SUPPLEMENTAL CASH FLOW DISCLOSURE

 

 

Cash Paid for Interest

$

4,238

$

4,837

Cash Paid for Income Taxes

 

40

 

295

Net Investment Securities Purchased but Not Settled

503

1,840

See accompanying notes to consolidated financial statements.

7

Bridgewater Bancshares, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(Unaudited)

Note 1: Description of the Business and Summary of Significant Accounting Policies

Organization

Bridgewater Bancshares, Inc. (the “Company”) is a financial holding company whose operations consist of the ownership of its wholly-owned subsidiaries, Bridgewater Bank (the “Bank”) and Bridgewater Risk Management, Inc. The Bank commenced operations in 2005 and provides retail and commercial loan and deposit services, principally to customers within the Minneapolis-St. Paul-Bloomington, MN-WI Metropolitan Statistical Area. In 2008, the Bank formed BWB Holdings, LLC, a wholly owned subsidiary of the Bank, for the purpose of holding repossessed property. In 2018, the Bank formed Bridgewater Investment Management, Inc., a wholly owned subsidiary of the Bank, for the purpose of holding certain municipal securities and to engage in municipal lending activities.

Bridgewater Risk Management, Inc. was incorporated in December 2016 as a wholly owned insurance company. It insures the Company and its subsidiaries against certain risks unique to the operations of the Company and for which insurance may not be currently available or economically feasible in today’s insurance marketplace. Bridgewater Risk Management pools resources with several other insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves.

Basis of Presentation

The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q and, therefore, do not include all disclosures necessary for a complete presentation of the consolidated balance sheets, consolidated statements of income, consolidated statements of comprehensive income, consolidated statements of shareholders’ equity and consolidated statements of cash flows in conformity with U.S. generally accepted accounting principles (“GAAP”). However, all normal recurring adjustments which are, in the opinion of management, necessary for the fair presentation of the interim financial statements have been included. The results of operations for the three-month period ended March 31, 2022 are not necessarily indicative of the results which may be expected for the entire year. For further information, refer to the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 8, 2022.

Principles of Consolidation

These consolidated financial statements include the amounts of the Company, the Bank, with locations in Bloomington, Greenwood, Minneapolis (2), St. Louis Park, Orono, and St. Paul, Minnesota, BWB Holdings, LLC, Bridgewater Investment Management, Inc., and Bridgewater Risk Management, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates in Preparation of Financial Statements

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Information available which could affect judgements includes, but is not limited to, changes in interest rates, changes in the performance of the economy, including COVID-19 pandemic related changes, and changes in the financial condition of borrowers.

8

Material estimates that are particularly susceptible to significant change in the near term include the determination of the allowance for loan losses, calculation of deferred tax assets, fair value of financial instruments, and investment securities impairment.

Emerging Growth Company

The Company qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and may take advantage of certain exemptions from various reporting requirements that are applicable to public companies that are not emerging growth companies, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. In addition, even if the Company complies with the greater obligations of public companies that are not emerging growth companies, the Company may avail itself of the reduced requirements applicable to emerging growth companies from time to time in the future, so long as the Company is an emerging growth company. The Company will continue to be an emerging growth company until the earliest to occur of: (1) the end of the fiscal year following the fifth anniversary of the date of the first sale of common equity securities under the Company’s Registration Statement on Form S-1, which was declared effective by the SEC on March 13, 2018; (2) the last day of the fiscal year in which the Company has $1.07 billion or more in annual revenues; (3) the date on which the Company is deemed to be a “large accelerated filer” under the Securities Exchange Act of 1934, as amended (the “Exchange Act”); or (4) the date on which the Company has, during the previous three-year period, issued publicly or privately, more than $1.0 billion in non-convertible debt securities.

Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933 for complying with new or revised accounting standards. As an emerging growth company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company elected to take advantage of the benefits of this extended transition period.

Impact of Recently Issued Accounting Guidance

In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU updates guidance in Topic 326 to eliminate the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables – Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancing and restructuring activities by creditors when a borrower is experiencing financial difficulty. Additionally, the amendments to ASC 326 require that an entity disclose current period gross write offs by year of origination within the vintage disclosures, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and class of financing receivables by year of origination. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022 for companies that have adopted CECL, including interim periods within those fiscal years, with early adoption permitted. The Company is in the process of evaluating the provisions of this ASU and its effects on the consolidated financial statements, however the adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements.

Subsequent Events

Subsequent events have been evaluated through May 5, 2022, which is the date the consolidated financial statements were available to be issued.

9

Note 2: Earnings Per Share

Basic earnings per common share are computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share are computed by dividing net income by the weighted average number of common shares adjusted for the dilutive effect of stock compensation. For the three months ended March 31, 2022 and 2021, respectively, 300,500 and 314,800, of stock options, restricted stock awards and restricted stock units were excluded from the calculation because they were deemed to be anti-dilutive.

The following table presents the numerators and denominators for basic and diluted earnings per share computations for the three months ended March 31, 2022 and 2021:

Three Months Ended

March 31, 

(dollars in thousands, except per share data)

    

2022

    

2021

Net Income Available to Common Shareholders

$

11,249

$

10,671

Weighted Average Common Stock Outstanding:

Weighted Average Common Stock Outstanding (Basic)

28,123,809

28,017,366

Dilutive Effect of Stock Compensation

1,032,276

927,846

Weighted Average Common Stock Outstanding (Dilutive)

29,156,085

28,945,212

Basic Earnings per Common Share

$

0.40

$

0.38

Diluted Earnings per Common Share

0.39

0.37

Note 3: Securities

The following tables present the amortized cost and estimated fair value of securities with gross unrealized gains and losses at March 31, 2022 and December 31, 2021:

March 31, 2022

Gross

Gross

Amortized

Unrealized

Unrealized

(dollars in thousands)

    

Cost

    

Gains

    

Losses

    

Fair Value

Securities Available for Sale:

U.S. Treasury Securities

$

17,448

$

$

(97)

$

17,351

Municipal Bonds

171,546

1,887

(9,215)

164,218

Mortgage-Backed Securities

 

131,480

 

53

 

(6,983)

 

124,550

Corporate Securities

 

83,834

 

1,060

 

(927)

 

83,967

SBA Securities

 

27,836

90

(223)

27,703

Asset-Backed Securities

40,846

617

(162)

41,301

Total Securities Available for Sale

$

472,990

$

3,707

$

(17,607)

$

459,090

December 31, 2021

Gross

Gross

Amortized

Unrealized

Unrealized

(dollars in thousands)

    

Cost

    

Gains

    

Losses

    

Fair Value

Securities Available for Sale:

U.S. Treasury Securities

$

756

$

$

(2)

$

754

Municipal Bonds

151,665

 

7,492

 

(788)

158,369

Mortgage-Backed Securities

 

125,563

 

1,085

 

(2,111)

 

124,537

Corporate Securities

 

81,925

2,740

(185)

 

84,480

SBA Securities

 

30,474

102

(206)

 

30,370

Asset-Backed Securities

39,867

1,044

(59)

40,852

Total Securities Available for Sale

$

430,250

$

12,463

$

(3,351)

$

439,362

10

The following tables present the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2022 and December 31, 2021:

Less Than 12 Months

12 Months or Greater

Total

Unrealized

Unrealized

Unrealized

(dollars in thousands)

    

Fair Value

    

Losses

    

Fair Value

    

Losses

    

Fair Value

    

Losses

March 31, 2022

U.S. Treasury Securities

$

17,351

$

(97)

$

$

$

17,351

$

(97)

Municipal Bonds

96,153

(7,938)

11,233

(1,277)

107,386

(9,215)

Mortgage-Backed Securities

74,194

(2,977)

39,942

(4,006)

 

114,136

 

(6,983)

Corporate Securities

29,031

(838)

1,910

(89)

 

30,941

 

(927)

SBA Securities

5,594

(24)

13,579

(199)

 

19,173

 

(223)

Asset-Backed Securities

13,745

(162)

13,745

(162)

Total Securities Available for Sale

$

236,068

$

(12,036)

$

66,664

$

(5,571)

$

302,732

$

(17,607)

Less Than 12 Months

12 Months or Greater

Total

Unrealized

Unrealized

Unrealized

(dollars in thousands)

    

Fair Value

    

Losses

    

Fair Value

    

Losses

    

Fair Value

    

Losses

December 31, 2021

U.S. Treasury Securities

$

754

$

(2)

$

$

$

754

$

(2)

Municipal Bonds

44,332

(708)

3,757

(80)

48,089

(788)

Mortgage-Backed Securities

 

36,921

(630)

35,949

(1,481)

 

72,870

 

(2,111)

Corporate Securities

 

9,398

(133)

1,948

(52)

 

11,346

 

(185)

SBA Securities

 

3,896

(7)

16,297

(199)

 

20,193

 

(206)

Asset-Backed Securities

6,742

(59)

6,742

(59)

Total Securities Available for Sale

$

102,043

$

(1,539)

$

57,951

$

(1,812)

$

159,994

$

(3,351)

At March 31, 2022, 372 debt securities had unrealized losses with aggregate depreciation of approximately 5.5% from the Company’s amortized cost basis. At December 31, 2021, 199 debt securities had unrealized losses with aggregate depreciation of approximately 2.1% from the Company’s amortized cost basis. These unrealized losses related principally to changes in interest rates and were not due to changes in the financial condition of the issuer, the quality of any underlying assets, or applicable credit enhancements. In analyzing whether unrealized losses on debt securities are other than temporary, management considers whether the securities are issued by a government body or agency, whether a rating agency has downgraded the securities, industry analysts’ reports, the financial condition and performance of the issuer, and the quality of any underlying assets or credit enhancements. Since management has the ability and intent to hold these debt securities for the foreseeable future, no declines were deemed to be other than temporary as of March 31, 2022.

11

The following table presents a summary of amortized cost and estimated fair value of debt securities by the lesser of expected call date or contractual maturity as of March 31, 2022. Call date is used when a call of the debt security is expected, as determined by the Company when the security has a market value above its amortized cost. Contractual maturities will differ from expected maturities for mortgage-backed, SBA securities and asset-backed securities because borrowers may have the right to call or prepay obligations without penalties.