Bankwell Financial Group Reports Operating Results for the Fourth Quarter, Declares First Quarter Dividend

Key Terms

gaap financial

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

non-gaap financial measure financial

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

efficiency ratio financial

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

pre-tax, pre-provision net revenue financial

A bank or lender’s revenue figure calculated before subtracting income taxes and the reserves set aside for expected loan losses. It shows the raw income from core activities like interest, fees and trading without the effects of tax bills or conservative cushions for bad loans, so investors can see underlying operating performance much like checking a car’s fuel efficiency before loading extra weight or accounting for future repairs.

allowance for credit losses financial

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

other real estate owned financial

Assets a lender or financial firm holds after taking back real property through foreclosure or repossession because a borrower defaulted. Think of it like a store keeping returned items it didn’t sell — these properties are not earning interest, can be costly to maintain, and may be sold at a loss or profit, so they directly affect a lender’s balance sheet, cash flow and perceived credit risk for investors.

nonperforming assets financial

Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.

NEW CANAAN, Conn.--(BUSINESS WIRE)-- Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $9.1 million, or $1.15 per share for the fourth quarter of 2025, versus $10.1 million, or $1.27 per share, for the third quarter of 2025. The Company's Board of Directors declared a $0.20 per share cash dividend, payable February 20, 2026 to shareholders of record on February 10, 2026.

Reported fourth quarter of 2025 GAAP net income reflects $1.5 million of one-time income tax expense related to adjustments to the income tax provision, primarily due to the finalization of state tax filings and changes in estimated tax positions associated with the Company’s expanded state-level footprint. These adjustments relate to both current- and prior‑year tax estimates.

Reported GAAP net income of $9.1 million, or $10.7 million on an operating basis⁽¹⁾, for the fourth quarter of 2025.

Reported diluted earnings per share was $1.15, or $1.36 on an operating basis⁽¹⁾, for the fourth quarter of 2025.

Reported return on average assets was 1.11%, or 1.29% on an operating basis⁽¹⁾, for the fourth quarter of 2025.

Reported return on average tangible shareholders' equity was 12.31%, or 14.32% on an operating basis⁽¹⁾, for the fourth quarter of 2025.

Discussion of Outlook; Bankwell Financial Group Chief Executive Officer, Christopher R. Gruseke:

"We finished the year in strong fashion, reporting operating net income of $1.36 per share for the 4th quarter and Pre-tax, pre-provision net revenue return on average assets of 1.80%. GAAP Net Income of $1.15 per share for the quarter includes a one-time adjustment for multiple years’ state level tax provisioning outside of our home state of Connecticut.

We entered the year with a clear set of priorities: strengthen credit, improve the funding mix, build non-interest income, generate high‑quality growth, and embrace an innovative mindset as we continue to invest in our people and in technology and I’m pleased to say that we delivered on each of these priorities.

Building on the work accomplished this year we are pleased to provide the following guidance for 2026:

We expect loan growth of 4 to 5 percent. We anticipate net interest income in the range of $111 to $112 million. We also expect non-interest income to increase to approximately $11 to $12 million. Regarding expenses, we estimate total non-interest expense of $64 to $65 million, which incorporates a prudent level of ongoing investment in our people, infrastructure, and operational capabilities. We are confident that our increased investments will continue to provide further operating leverage; our guidance yields an efficiency ratio of approximately 51% to 53%, versus 54.1% in 2025."

(1)	Non-GAAP Financial Measure, refer to the "Non-GAAP Financial Measures" section of this document for additional detail.

Key Points for Fourth Quarter and Bankwell’s Outlook

Credit Quality Improves Amid Solid Loan Growth.

• $121.9 million net loan growth during the quarter ended December 31, 2025, resulting in $134.2 million, or 5.0%, growth compared to the year ended December 31, 2024.
• As of December 31, 2025, nonperforming assets as a percentage of total assets improved to 0.49%, compared to 0.56% as of September 30, 2025. Nonperforming assets have declined $1.9 million from the third quarter, mainly driven by the sale of an OREO property for $1.3 million and the collection of $0.4 million on an SBA guarantee.

Net Interest Margin Expands on Lower Deposit Costs and Improved Mix.

• Reported Net Interest Margin was 3.40% for the fourth quarter of 2025, an increase of 6 basis points from the third quarter of 2025. Earning asset yields declined 11 basis points from the third quarter of 2025 to 6.23% while deposit costs decreased 15 basis points to 3.15% over the same period.
• During the quarter ended December 31, 2025, average low-cost deposits increased by $21.6 million compared to the third quarter of 2025 and by $85.9 million compared to the same period in the prior year.

Advancing Key Strategic Priorities.

• SBA loan sale gains increased to $2.2 million in the fourth quarter of 2025, compared to $1.4 million in the third quarter of 2025. The SBA Lending division delivered $24.3 million in originations in the fourth quarter of 2025, bringing the total year originations to $68.3 million.
• As a result of SBA loan sale gains, noninterest income as a percentage of revenue increased to 11.13% in the fourth quarter of 2025, compared to 8.76% in the third quarter of 2025.
• For the fourth quarter of 2025, the Company realized an efficiency ratio⁽¹⁾ of 50.8%, compared to 51.4% for the third quarter of 2025.

Fourth Quarter 2025 Financial Highlights and Key Performance Indicators (KPIs):

	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
Return on average assets(1)(6)		1.11	%			1.24	%			1.14	%			0.86	%			0.37	%
Pre-tax, pre-provision net revenue return on average assets(1)(6)		1.80	%			1.70	%			1.43	%			1.18	%			1.05	%
Return on average shareholders' equity(1)(6)		12.20	%			13.84	%			12.98	%			10.16	%			4.35	%
Return on average tangible shareholders' equity(1)(6)		12.31	%			13.96	%			13.10	%			10.25	%			4.40	%
Net Interest Margin(1)(6)(7)		3.40	%			3.34	%			3.10	%			2.81	%			2.60	%
Efficiency Ratio(1)(3)		50.8	%			51.4	%			56.1	%			59.9	%			56.4	%
Noninterest expense to average assets(1)(6)		1.87	%			1.80	%			1.83	%			1.76	%			1.56	%
Net loan (recoveries) charge-offs as a percentage of average loans(1)(6)		0.00	%			(0.01	)%			0.00	%			0.00	%			0.11	%
Dividend payout(1)(4)		17.39	%			15.75	%			17.39	%			22.99	%			54.05	%
Fully diluted tangible book value per common share(1)(2)	$	37.84			$	36.84			$	35.65			$	34.56			$	34.09
Total capital to risk-weighted assets(1)(5)		12.94	%			13.48	%			13.28	%			13.22	%			12.70	%
Total common equity tier 1 capital to risk-weighted assets(1)(5)		11.87	%			12.39	%			12.20	%			12.11	%			11.64	%
Tier I Capital to Average Assets(1)(5)		10.55	%			10.71	%			10.57	%			10.13	%			10.09	%
Tangible common equity to tangible assets(1)(2)		8.90	%			8.95	%			8.68	%			8.57	%			8.20	%
Earnings per common share - diluted	$	1.15			$	1.27			$	1.15			$	0.87			$	0.37
Common shares issued and outstanding		7,899,943				7,877,443				7,873,387				7,888,013				7,859,873

(1)	Non-GAAP Financial Measure, refer to the "Non-GAAP Financial Measures" section of this document for additional detail.
(2)	Refer to the "Reconciliation of GAAP to Non-GAAP Measures" section of this document for additional detail.
(3)	Efficiency ratio is defined as noninterest expense, less other real estate owned expenses and amortization of intangible assets, divided by our operating revenue, which is equal to net interest income plus noninterest income excluding gains and losses on sales of securities and gains and losses on other real estate owned. In our judgment, the adjustments made to operating revenue allow investors and analysts to better assess our operating expenses in relation to our core operating revenue by removing the volatility that is associated with certain one-time items and other discrete items that are unrelated to our core business.
(4)	The dividend payout ratio is calculated by dividing dividends per share by earnings per share.
(5)	Represents Bank ratios. Current period capital ratios are preliminary subject to finalization of the FDIC Call Report.
(6)	Return on average assets is calculated by dividing annualized net income by average assets. Pre-tax, pre-provision net revenue return on average is calculated by dividing PPNR (using the "Pre-Tax, Pre-Provision Net Revenue (PPNR)" section of this document) by average assets. Return on average shareholders' equity is calculated by dividing annualized net income by average shareholders' equity. Return on average tangible shareholders' equity is calculated by dividing annualized net income by average shareholders' equity less average intangible assets. Net Interest Margin is calculated by dividing average annualized net interest income by average total earning assets. Noninterest expense to average assets is calculated by dividing annualized noninterest expense by average total assets. Net loan charge-offs as a percentage of average loans is calculated by dividing net loan (charge offs) recoveries by average total loans.
(7)	Based on a fully tax equivalent basis.

Pre-Tax, Pre-Provision Net Revenue⁽¹⁾ ("PPNR")

PPNR for the fourth quarter ended December 31, 2025 was $14.9 million, an increase of 7.2% from $13.9 million recognized for the third quarter ended September 30, 2025.

	For the Quarter Ended
(Dollars in thousands)	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
Net interest income	$	26,946		$	25,987		$	23,936		$	22,066		$	20,199
Total noninterest income		3,376			2,495			2,012			1,505			964
Total revenues		30,322			28,482			25,948			23,571			21,163
Total noninterest expense		15,470			14,631			14,546			14,141			12,644
PPNR	$	14,852		$	13,851		$	11,402		$	9,430		$	8,519
(1) Non-GAAP Financial Measure, refer to the "Non-GAAP Financial Measures" section of this document for additional detail.

• Revenues (net interest income plus noninterest income) for the quarter ended December 31, 2025 were $30.3 million, compared with $28.5 million in the previous quarter. The increase in revenues for the quarter ended December 31, 2025 was mainly attributable lower funding costs. Additional favorability for the quarter ended December 31, 2025 resulted from increased gains on SBA loan sales, reflecting higher sales volume.

Net Interest Margin

The Net Interest Margin (fully taxable equivalent basis) for the quarters ended December 31, 2025 and September 30, 2025 was 3.40% and 3.34%, respectively. The increase in the Net Interest Margin is mainly due to lower cost of interest bearing deposits.

Allowance for Credit Losses - Loans ("ACL-Loans")

The ACL-Loans was $30.7 million as of December 31, 2025 compared to $30.0 million as of September 30, 2025. The ACL-Loans as a percentage of total loans was 1.08% as of December 31, 2025 compared to 1.10% as of September 30, 2025.

The provision for credit losses - loans was $0.7 million for the quarter ended December 31, 2025. Total nonperforming loans decreased $0.7 million to $16.3 million as of December 31, 2025, when compared to the previous quarter. Nonperforming assets as a percentage of total assets decreased to 0.49% at December 31, 2025, compared to the previous quarter's ratio of 0.56%.

BANKWELL FINANCIAL GROUP, INC. ASSET QUALITY (unaudited) (Dollars in thousands)
	For the Quarter Ended
	December 31, 2025			September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
ACL-Loans:
Balance at beginning of period	$	29,984		$	29,256			$	29,485			$	29,007			$	27,752
Charge-offs:
Residential real estate		—			—				—				—				—
Commercial real estate		—			—				—				(67	)			(1,100	)
Commercial business		—			(14	)			(15	)			—				(703	)
Consumer		—			(46	)			(5	)			(33	)			(5	)
Construction		—			—				—				—				(1,155	)
Total charge-offs		—			(60	)			(20	)			(100	)			(2,963	)
Recoveries:
Residential real estate		—			—				—				—				—
Commercial real estate		7			272				—				—				—
Commercial business		23			92				112				4				4
Consumer		10			4				10				36				5
Construction		—			—				—				—				—
Total recoveries		40			368				122				40				9
Net loan recoveries (charge-offs)		40			308				102				(60	)			(2,954	)
Provision (credit) for credit losses - loans		681			420				(331	)			538				4,209
Balance at end of period	$	30,705		$	29,984			$	29,256			$	29,485			$	29,007

	As of
	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
Asset quality:
Nonaccrual loans
Residential real estate	$	557			$	570			$	617			$	811			$	791
Commercial real estate		14,445				14,667				16,387				17,946				44,814
Commercial business		1,302				1,729				6,871				7,626				7,672
Construction		—				—				—				—				—
Consumer		—				—				—				—				—
Total nonaccrual loans		16,304				16,966				23,875				26,383				53,277
Other real estate owned		—				1,284				1,284				—				8,299
Total nonperforming assets	$	16,304			$	18,250			$	25,159			$	26,383			$	61,576
Nonperforming loans as a % of total loans		0.57	%			0.62	%			0.89	%			1.00	%			1.97	%
Nonperforming assets as a % of total assets		0.49	%			0.56	%			0.78	%			0.83	%			1.88	%
ACL-loans as a % of total loans		1.08	%			1.10	%			1.10	%			1.11	%			1.07	%
ACL-loans as a % of nonperforming loans		188.33	%			176.73	%			122.54	%			111.76	%			54.44	%
Total past due loans to total loans		0.31	%			0.76	%			0.91	%			1.08	%			1.63	%

Financial Condition & Capital

Assets totaled $3.4 billion at December 31, 2025, an increase of $91.4 million, or 2.8% compared to December 31, 2024. Gross loans totaled $2.8 billion at December 31, 2025, an increase of $134.2 million, or 5.0% compared to December 31, 2024. Deposits totaled $2.8 billion at December 31, 2025, an increase of $41.9 million, or 1.5% compared to December 31, 2024. Brokered deposits have decreased $146.3 million or 20.7%, when compared to December 31, 2024.

Period End Loan Composition	December 31, 2025			September 30, 2025			December 31, 2024			Current QTD % Change			Year over Year % Change
Residential Real Estate	$	33,139		$	33,625		$	42,766		(1.4	)%		(22.5	)%
Commercial Real Estate(1)		1,930,979			1,897,896			1,899,134		1.7			1.7
Construction		153,778			170,888			173,555		(10.0	)		(11.4	)
Total Real Estate Loans		2,117,896			2,102,409			2,115,455		0.7			0.1
Commercial Business		645,321			552,682			515,125		16.8			25.3
Consumer		76,855			63,098			75,308		21.8			2.1
Total Loans	$	2,840,072		$	2,718,189		$	2,705,888		4.5	%		5.0	%
(1) Includes owner occupied commercial real estate of $0.8 billion at December 31, 2025, $0.8 billion at September 30, 2025, and $0.7 billion at December 31, 2024, respectively.

Period End Deposit Composition	December 31, 2025			September 30, 2025			December 31, 2024			Current QTD % Change			Year over Year % Change
Noninterest bearing demand	$	403,652		$	397,408		$	321,875		1.6	%		25.4	%
NOW		90,205			84,736			105,090		6.5			(14.2	)
Money Market		1,007,844			897,387			899,413		12.3			12.1
Savings		97,418			95,242			90,220		2.3			8.0
Time		1,230,362			1,282,642			1,370,972		(4.1	)		(10.3	)
Total Deposits	$	2,829,481		$	2,757,415		$	2,787,570		2.6	%		1.5	%

Shareholders’ equity totaled $301.5 million as of December 31, 2025, an increase of $31.0 million compared to December 31, 2024, primarily a result of year to date net income of $35.2 million. The increase was partially offset by dividends paid of $6.3 million.

As of December 31, 2025, the Bank's regulatory capital ratios were all above 'well capitalized' values, with total risk-based capital, common-equity tier 1 capital and leverage ratios at 12.94%, 11.87%, and 10.55%, respectively.

We recommend reading this earnings release in conjunction with the Fourth Quarter 2025 Investor Presentation, located at https://investor.mybankwell.com/events-and-presentations/ and included as an exhibit to our January 29, 2026 Current Report on Form 8-K.

Conference Call
Bankwell will host a conference call to discuss the Company’s financial results and business outlook on January 29, 2026, at 11:00 a.m. E.T. The call will be accessible by telephone and webcast using https://investor.mybankwell.com/events-and-presentations/. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event.

About Bankwell Financial Group

Bankwell Financial Group, Inc. is the holding company for Bankwell Bank ("Bankwell"), a full-service commercial bank headquartered in New Canaan, CT. Bankwell offers its customers unmatched accessibility, expertise, and responsiveness through a range of commercial financing products including working capital lines of credit, SBA loans, acquisition loans, and commercial mortgages as well as treasury management and deposit services.

For more information about this press release, interested parties may contact Christopher R. Gruseke, Chief Executive Officer or Courtney E. Sacchetti, Executive Vice President and Chief Financial Officer of Bankwell Financial Group at (203) 652-0166 or at ir@mybankwell.com.

For more information, visit www.mybankwell.com.

This press release may contain certain forward-looking statements about the Company. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the banking industry or securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and its subsidiaries are engaged.

Non-GAAP Financial Measures

In addition to evaluating the Company's financial performance in accordance with U.S. generally accepted accounting principles ("GAAP"), management may evaluate certain non-GAAP financial measures, such as the efficiency ratio. A computation and reconciliation of certain non-GAAP financial measures used for these purposes is contained in the accompanying Reconciliation of GAAP to Non-GAAP Measures tables. We believe that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends and financial position. For example, the Company believes that the efficiency ratio is useful in the assessment of financial performance, including noninterest expense control. The Company believes that tangible common equity, tangible assets, tangible common equity to tangible assets, tangible common shareholders' equity, fully diluted tangible book value per common share, operating revenue, efficiency ratio, noninterest expense to average assets, average tangible common equity, annualized return on average tangible shareholders' equity, return on average assets, operating basis return on average assets, return on average shareholders' equity, operating basis return on average tangible shareholders' equity, pre-tax, pre-provision net revenue, net interest margin, net loan charge-offs as a percentage of average loans, pre-tax, pre-provision net revenue on average assets, adjusted average equity, operating basis diluted earnings per share, operating net income, and the dividend payout ratio are useful to evaluate the relative strength of the Company's performance and capital position. We utilize these measures for internal planning and forecasting purposes. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. See "Reconciliation of GAAP to Non-GAAP Measures (unaudited)".

BANKWELL FINANCIAL GROUP, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (Dollars in thousands)
	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
ASSETS
Cash and due from banks	$	214,567			$	289,628			$	313,998			$	292,006			$	293,552
Federal funds sold		10,354				5,732				8,466				12,922				13,972
Cash and cash equivalents		224,921				295,360				322,464				304,928				307,524
Investment securities
Marketable equity securities, at fair value		2,248				2,223				2,188				2,164				2,118
Available for sale investment securities, at fair value		160,409				96,473				103,930				97,321				107,428
Held to maturity investment securities, at amortized cost		29,465				29,538				36,434				36,478				36,553
Total investment securities		192,122				128,234				142,552				135,963				146,099
Loans receivable (net of ACL-Loans of $30,705, $29,984, $29,256, $29,485, and $29,007, at December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, respectively)		2,804,441				2,684,016				2,635,742				2,611,495				2,672,959
Accrued interest receivable		16,143				15,633				14,741				15,409				14,535
Federal Home Loan Bank stock, at cost		6,207				4,951				5,051				3,583				5,655
Premises and equipment, net		21,582				22,387				23,020				22,978				23,856
Bank-owned life insurance		54,207				53,846				53,488				53,136				52,791
Goodwill		2,589				2,589				2,589				2,589				2,589
Deferred income taxes, net		11,356				9,027				9,684				9,551				9,742
Other real estate owned		—				1,284				1,284				—				8,299
Other assets		26,291				26,636				25,978				24,261				24,427
Total assets	$	3,359,859			$	3,243,963			$	3,236,593			$	3,183,893			$	3,268,476
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits
Noninterest bearing deposits	$	403,652			$	397,408			$	397,195			$	349,525			$	321,875
Interest bearing deposits		2,425,829				2,360,007				2,362,086				2,400,920				2,465,695
Total deposits		2,829,481				2,757,415				2,759,281				2,750,445				2,787,570
Advances from the Federal Home Loan Bank		110,000				75,000				75,000				40,000				90,000
Subordinated debentures		69,697				69,636				69,574				69,513				69,451
Accrued expenses and other liabilities		49,192				49,121				49,448				48,721				50,935
Total liabilities		3,058,370				2,951,172				2,953,303				2,908,679				2,997,956
Shareholders’ equity
Common stock, no par value		120,118				119,353				118,698				118,439				119,108
Retained earnings		181,587				174,008				165,495				157,971				152,656
Accumulated other comprehensive (loss)		(216	)			(570	)			(903	)			(1,196	)			(1,244	)
Total shareholders’ equity		301,489				292,791				283,290				275,214				270,520
Total liabilities and shareholders’ equity	$	3,359,859			$	3,243,963			$	3,236,593			$	3,183,893			$	3,268,476

BANKWELL FINANCIAL GROUP, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited) (Dollars in thousands, except share data)
	For the Quarter Ended																	For the Year Ended
	December 31, 2025			September 30, 2025				June 30, 2025				March 31, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Interest and dividend income
Interest and fees on loans	$	46,739		$	46,328			$	44,128			$	43,475		$	42,851		$	180,670		$	172,832
Interest and dividends on securities		1,834			1,410				1,478				1,445			1,482			6,167			5,192
Interest on cash and cash equivalents		2,037			2,853				3,043				3,557			3,510			11,490			13,970
Total interest and dividend income		50,610			50,591				48,649				48,477			47,843			198,327			191,994
Interest expense
Interest expense on deposits		22,388			22,585				23,083				24,772			25,640			92,828			101,258
Interest expense on borrowings		1,276			2,019				1,630				1,639			2,004			6,564			7,454
Total interest expense		23,664			24,604				24,713				26,411			27,644			99,392			108,712
Net interest income		26,946			25,987				23,936				22,066			20,199			98,935			83,282
Provision (credit) for credit losses		616			372				(411	)			463			4,458			1,040			22,620
Net interest income after provision (credit) for credit losses		26,330			25,615				24,347				21,603			15,741			97,895			60,662
Noninterest income
Bank owned life insurance		361			359				352				344			348			1,416			1,356
Service charges and fees		771			779				674				602			589			2,826			1,963
Gains and fees from sales of loans		2,184			1,372				1,080				442			24			5,078			523
Other		60			(15	)			(94	)			117			3			68			(124	)
Total noninterest income		3,376			2,495				2,012				1,505			964			9,388			3,718
Noninterest expense
Salaries and employee benefits		7,717			7,995				7,521				7,052			5,056			30,285			23,746
Occupancy and equipment		2,575			2,469				2,505				2,575			2,600			10,124			9,494
Professional services		1,415			1,412				1,632				1,529			1,286			5,988			4,482
Data processing		877			633				712				885			905			3,107			3,251
Director fees		337			333				333				348			342			1,351			1,840
FDIC insurance		612			610				684				779			862			2,685			3,350
Marketing		108			140				218				142			175			608			452
Other		1,829			1,039				941				831			1,418			4,640			4,436
Total noninterest expense		15,470			14,631				14,546				14,141			12,644			58,788			51,051
Income before income tax expense		14,236			13,479				11,813				8,967			4,061			48,495			13,329
Income tax expense		5,092			3,401				2,725				2,079			1,098			13,297			3,559
Net income	$	9,144		$	10,078			$	9,088			$	6,888		$	2,963		$	35,198		$	9,770
Earnings Per Common Share:
Basic	$	1.16		$	1.28			$	1.16			$	0.88		$	0.37		$	4.49		$	1.24
Diluted	$	1.15		$	1.27			$	1.15			$	0.87		$	0.37		$	4.45		$	1.23
Weighted Average Common Shares Outstanding:
Basic		7,776,740			7,774,887				7,777,469				7,670,224			7,713,970			7,750,191			7,710,076
Diluted		7,858,047			7,844,785				7,819,829				7,740,521			7,727,412			7,826,280			7,737,952
Dividends per common share	$	0.20		$	0.20			$	0.20			$	0.20		$	0.20		$	0.80		$	0.80

BANKWELL FINANCIAL GROUP, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited) (Dollars in thousands, except share data)
	As of
Computation of Tangible Common Equity to Tangible Assets	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
Total Equity	$	301,489			$	292,791			$	283,290			$	275,214			$	270,520
Less:
Goodwill		2,589				2,589				2,589				2,589				2,589
Other intangibles		—				—				—				—				—
Tangible Common Equity	$	298,900			$	290,202			$	280,701			$	272,625			$	267,931
Total Assets	$	3,359,859			$	3,243,963			$	3,236,593			$	3,183,893			$	3,268,476
Less:
Goodwill		2,589				2,589				2,589				2,589				2,589
Other intangibles		—				—				—				—				—
Tangible Assets	$	3,357,270			$	3,241,374			$	3,234,004			$	3,181,304			$	3,265,887
Tangible Common Equity to Tangible Assets		8.90	%			8.95	%			8.68	%			8.57	%			8.20	%

	As of
Computation of Fully Diluted Tangible Book Value per Common Share	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
Total shareholders' equity	$	301,489		$	292,791		$	283,290		$	275,214		$	270,520
Less:
Preferred stock		—			—			—			—			—
Common shareholders' equity	$	301,489		$	292,791		$	283,290		$	275,214		$	270,520
Less:
Goodwill		2,589			2,589			2,589			2,589			2,589
Other intangibles		—			—			—			—			—
Tangible common shareholders' equity	$	298,900		$	290,202		$	280,701		$	272,625		$	267,931
Common shares issued and outstanding		7,899,943			7,877,443			7,873,387			7,888,013			7,859,873
Fully Diluted Tangible Book Value per Common Share	$	37.84		$	36.84		$	35.65		$	34.56		$	34.09

BANKWELL FINANCIAL GROUP, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited) (Dollars in thousands, except share data)
Computation of Operating Basis Diluted EPS, Operating Basis Return on Average Assets, Operating Basis Return on Average Equity	For the Quarter Ended
(Dollars in thousands)	December 31, 2025
Net Income	$	9,144
Income tax expenses related to a Return-to-provision true-up		855
Updates to the reserve for uncertain tax positions methodology change and state-level presence		692
Operating Net Income	$	10,691
Weighted Average Common Shares Outstanding:
Diluted		7,858,047
Operating Diluted EPS	$	1.36
Average Assets	$	3,277,608
Operating Basis Return on Average Assets		1.29	%
Adjusted Average Tangible Equity	$	296,140
Operating Basis Return on Average Tangible Shareholders' Equity		14.32	%

BANKWELL FINANCIAL GROUP, INC. EARNINGS PER SHARE ("EPS") (unaudited) (Dollars in thousands, except share data)
	For the Quarter Ended December 31,								For the Year Ended December 31,
		2025				2024				2025				2024
	(In thousands, except per share data)
Net income	$	9,144			$	2,963			$	35,198			$	9,770
Dividends to participating securities(1)		27				(38	)			106				(156	)
Undistributed earnings allocated to participating securities(1)		(127	)			(34	)			(514	)			(87	)
Net income for earnings per share calculation		9,044				2,891				34,790				9,527
Weighted average shares outstanding, basic		7,776,740				7,713,970				7,750,191				7,710,076
Effect of dilutive equity-based awards(2)		81,307				13,442				76,089				27,876
Weighted average shares outstanding, diluted		7,858,047				7,727,412				7,826,280				7,737,952
Net earnings per common share:
Basic earnings per common share	$	1.16			$	0.37			$	4.49			$	1.24
Diluted earnings per common share	$	1.15			$	0.37			$	4.45			$	1.23

(1)	Represents dividends paid and undistributed earnings allocated to unvested stock-based awards that contain non-forfeitable rights to dividends.
(2)	Represents the effect of the assumed exercise of stock options and the vesting of restricted shares, as applicable, utilizing the treasury stock method.

BANKWELL FINANCIAL GROUP, INC. NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - QTD (unaudited) (Dollars in thousands)
	For the Quarter Ended
	December 31, 2025									December 31, 2024
	Average Balance			Interest			Yield/ Rate (4)			Average Balance			Interest			Yield/ Rate (4)
Assets:
Cash and Fed funds sold	$	233,348		$	2,037		3.46	%		$	313,777		$	3,510		4.45	%
Securities(1)		185,111			1,834		3.96				151,300			1,506		3.98
Loans:
Commercial real estate		1,904,755			30,454		6.26				1,896,551			28,222		5.82
Residential real estate		33,675			485		5.76				44,329			753		6.79
Construction		181,202			3,468		7.49				171,244			3,281		7.50
Commercial business		578,924			11,364		7.68				505,655			9,911		7.67
Consumer		63,762			968		6.02				43,315			684		6.29
Total loans		2,762,318			46,739		6.63				2,661,094			42,851		6.30
Federal Home Loan Bank stock		3,453			113		12.93				5,655			119		8.36
Total earning assets		3,184,230		$	50,723		6.23	%			3,131,826		$	47,986		6.00	%
Other assets		93,378									94,781
Total assets	$	3,277,608								$	3,226,607
Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW	$	95,035		$	62		0.26	%		$	90,497		$	42		0.18	%
Money market		957,209			8,571		3.55				855,522			8,472		3.94
Savings		96,566			703		2.89				88,956			692		3.10
Time		1,263,108			13,052		4.10				1,385,264			16,434		4.72
Total interest bearing deposits		2,411,918			22,388		3.68				2,420,239			25,640		4.21
Borrowed Money		110,961			1,275		4.56				159,416			2,004		5.00
Total interest bearing liabilities		2,522,879		$	23,663		3.72	%			2,579,655		$	27,644		4.27	%
Noninterest bearing deposits		404,600									322,135
Other liabilities		52,812									54,013
Total liabilities		2,980,291									2,955,803
Shareholders' equity		297,317									270,804
Total liabilities and shareholders' equity	$	3,277,608								$	3,226,607
Net interest income(2)				$	27,060								$	20,342
Interest rate spread							2.51	%								1.73	%
Net Interest Margin(3)							3.40	%								2.60	%

(1)	Average balances and yields for securities are based on amortized cost.
(2)	The adjustment for securities and loans taxable equivalency amounted to $114 thousand and $143 thousand for the quarters ended December 31, 2025 and 2024, respectively.
(3)	Annualized net interest income as a percentage of earning assets.
(4)	Yields are calculated using the contractual day count convention for each respective product type.

BANKWELL FINANCIAL GROUP, INC. NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - YTD (unaudited) (Dollars in thousands)
	For the Year Ended
	December 31, 2025									December 31, 2024
	Average Balance			Interest			Yield/ Rate (4)			Average Balance			Interest			Yield/ Rate (4)
Assets:
Cash and Fed funds sold	$	288,987		$	11,490		3.98	%		$	283,353		$	13,970		4.93	%
Securities(1)		157,033			6,309		4.02				142,744			5,098		3.57
Loans:
Commercial real estate		1,849,502			115,827		6.18				1,905,973			112,804		5.82
Residential real estate		36,788			2,223		6.04				47,767			2,978		6.23
Construction		182,440			14,322		7.74				162,180			12,197		7.40
Commercial business		554,862			44,205		7.86				514,800			42,006		8.03
Consumer		70,186			4,092		5.83				41,869			2,847		6.80
Total loans		2,693,778			180,669		6.62				2,672,589			172,832		6.36
Federal Home Loan Bank stock		5,000			398		7.95				5,666			477		8.41
Total earning assets		3,144,798		$	198,866		6.24	%			3,104,352		$	192,377		6.09	%
Other assets		92,684									92,885
Total assets	$	3,237,482								$	3,197,237
Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW	$	100,341		$	374		0.37	%		$	96,091		$	175		0.18	%
Money market		908,304			34,149		3.76				851,283			34,767		4.08
Savings		92,637			2,728		2.95				90,587			2,785		3.07
Time		1,291,785			55,577		4.30				1,335,680			63,531		4.76
Total interest bearing deposits		2,393,067			92,828		3.88				2,373,641			101,258		4.27
Borrowed Money		138,305			6,564		4.75				159,320			7,454		4.68
Total interest bearing liabilities		2,531,372		$	99,392		3.93	%			2,532,961		$	108,712		4.29	%
Noninterest bearing deposits		368,777									332,611
Other liabilities		51,722									60,464
Total liabilities		2,951,871									2,926,036
Shareholders' equity		285,611									271,201
Total liabilities and shareholders' equity	$	3,237,482								$	3,197,237
Net interest income(2)				$	99,474								$	83,665
Interest rate spread							2.31	%								1.80	%
Net Interest Margin(3)							3.16	%								2.70	%

(1)	Average balances and yields for securities are based on amortized cost.
(2)	The adjustment for securities and loans taxable equivalency amounted to $539 thousand and $383 thousand for the year ended December 31, 2025 and 2024, respectively.
(3)	Annualized net interest income as a percentage of earning assets.
(4)	Yields are calculated using the contractual day count convention for each respective product type.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260129339536/en/

Christopher R. Gruseke, Chief Executive Officer

Courtney E. Sacchetti, Executive Vice President and Chief Financial Officer

Bankwell Financial Group

(203) 652-0166

ir@mybankwell.com

Source: Bankwell Financial Group, Inc