Bankwell Financial Group Reports Operating Results for the Third Quarter, Declares Fourth Quarter Dividend
Pre-tax, pre-provision net revenue ("PPNR") of
Discussion of Outlook; Bankwell Financial Group Chief Executive Officer, Christopher R. Gruseke:
"We are proud to announce our third quarter results which demonstrate continued growth and improvement across all aspects of our business. Our Return on Average Assets grew to
Balance sheet trends have shown consistent improvement, supported by ongoing capital growth and a reduction in non-performing asset balances. NPAs as a percentage of assets now stand
Key Points for Third Quarter and Bankwell’s Outlook
Continued Positive Credit Trends.
-
As of September 30, 2025, nonperforming assets as a percentage of total assets improved to
0.56% , compared to0.78% as of June 30, 2025. Nonperforming assets have declined$6.9 million $5.0 million $1.6 million -
Special Mention loan balances have decreased
$30 million -
ACL-loans as a % of nonperforming loans increased to
176.7% , compared to122.5% as of June 30, 2025.
Net Interest Margin Expands on Favorable Loan Yields and Lower Deposit Costs.
-
Reported Net Interest Margin was
3.34% for the third quarter of 2025, up 24 basis points from the second quarter of 2025. -
Deposit costs of
3.30% for the third quarter of 2025 have declined by 10 bps from the second quarter of 2025. The deposit cost improvement is driven by the repricing of time deposits and improved deposit mix, with current quarter results not reflective of the Company's response to the September rate cut made by the Federal Reserve. -
Loan yields were
6.71% for the third quarter of 2025, expanding by 13 basis points from the second quarter of 2025.
Advancing Key Strategic Priorities.
-
SBA loan sale gains increased to
$1.4 million $1.1 million 10% . The SBA Lending division delivered$21.8 million -
Noninterest income as a percentage of revenue increased to
8.76% in the third quarter of 2025, compared to7.76% in the second quarter of 2025. -
For the third quarter of 2025, the Company realized an efficiency ratio of
51.4% , improved from56.1% in the second quarter of 2025.
Third Quarter 2025 Financial Highlights and Key Performance Indicators (KPIs):
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
Return on average assets(1)(6) |
|
1.24 |
% |
|
|
1.14 |
% |
|
|
0.86 |
% |
|
|
0.37 |
% |
|
|
0.24 |
% |
Pre-tax, pre-provision net revenue return on average assets(1)(6) |
|
1.70 |
% |
|
|
1.43 |
% |
|
|
1.18 |
% |
|
|
1.05 |
% |
|
|
1.13 |
% |
Return on average shareholders' equity(1)(6) |
|
13.84 |
% |
|
|
12.98 |
% |
|
|
10.16 |
% |
|
|
4.35 |
% |
|
|
2.83 |
% |
Net Interest Margin(1)(6) |
|
3.34 |
% |
|
|
3.10 |
% |
|
|
2.81 |
% |
|
|
2.60 |
% |
|
|
2.72 |
% |
Efficiency Ratio(1)(3) |
|
51.4 |
% |
|
|
56.1 |
% |
|
|
59.9 |
% |
|
|
56.4 |
% |
|
|
58.8 |
% |
Noninterest expense to average assets(1)(6) |
|
1.80 |
% |
|
|
1.83 |
% |
|
|
1.76 |
% |
|
|
1.56 |
% |
|
|
1.62 |
% |
Net loan (recoveries) charge-offs as a percentage of average loans(1)(6) |
|
(0.01 |
)% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.11 |
% |
|
|
0.56 |
% |
Dividend payout(1)(4) |
|
15.75 |
% |
|
|
17.39 |
% |
|
|
22.99 |
% |
|
|
54.05 |
% |
|
|
82.30 |
% |
Fully diluted tangible book value per common share(1)(2) |
$ |
36.84 |
|
|
$ |
35.65 |
|
|
$ |
34.56 |
|
|
$ |
34.09 |
|
|
$ |
33.76 |
|
Total capital to risk-weighted assets(1)(5) |
|
13.47 |
% |
|
|
13.28 |
% |
|
|
13.22 |
% |
|
|
12.70 |
% |
|
|
12.83 |
% |
Total common equity tier 1 capital to risk-weighted assets(1)(5) |
|
12.38 |
% |
|
|
12.20 |
% |
|
|
12.11 |
% |
|
|
11.64 |
% |
|
|
11.80 |
% |
Tier I Capital to Average Assets(1)(5) |
|
10.70 |
% |
|
|
10.57 |
% |
|
|
10.13 |
% |
|
|
10.09 |
% |
|
|
10.24 |
% |
Tangible common equity to tangible assets(1)(2) |
|
8.95 |
% |
|
|
8.68 |
% |
|
|
8.57 |
% |
|
|
8.20 |
% |
|
|
8.40 |
% |
Earnings per common share - diluted |
$ |
1.27 |
|
|
$ |
1.15 |
|
|
$ |
0.87 |
|
|
$ |
0.37 |
|
|
$ |
0.24 |
|
Common shares issued and outstanding |
|
7,877,443 |
|
|
|
7,873,387 |
|
|
|
7,888,013 |
|
|
|
7,859,873 |
|
|
|
7,858,573 |
|
(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. 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. |
Pre-Tax, Pre-Provision Net Revenue(1) ("PPNR")
PPNR for the third quarter ended September 30, 2025 was
|
For the Quarter Ended |
|||||||||||||
(Dollars in thousands) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|||||
Net interest income |
$ |
25,987 |
|
$ |
23,936 |
|
$ |
22,066 |
|
$ |
20,199 |
|
$ |
20,717 |
Total noninterest income |
|
2,495 |
|
|
2,012 |
|
|
1,505 |
|
|
964 |
|
|
1,156 |
Total revenues |
|
28,482 |
|
|
25,948 |
|
|
23,571 |
|
|
21,163 |
|
|
21,873 |
Total noninterest expense |
|
14,631 |
|
|
14,546 |
|
|
14,141 |
|
|
12,644 |
|
|
12,865 |
PPNR |
$ |
13,851 |
|
$ |
11,402 |
|
$ |
9,430 |
|
$ |
8,519 |
|
$ |
9,008 |
(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 September 30, 2025 were
$28.5 million $25.9 million 10% premium, on average. -
The Net Interest Margin (fully taxable equivalent basis) for the quarters ended September 30, 2025 and June 30, 2025 was
3.34% and3.10% , respectively. The increase in the Net Interest Margin is mainly due to increased earning asset yields. Additionally, Net Interest Margin for the third quarter 2025 benefited by 3 basis points due to non-recurring interest income recognized from the resolution of certain non-performing SBA loans.
Allowance for Credit Losses - Loans ("ACL-Loans")
The ACL-Loans was
The provision for credit losses - loans was
BANKWELL FINANCIAL GROUP, INC. ASSET QUALITY (unaudited) (Dollars in thousands) |
|||||||||||||||||||
|
For the Quarter Ended |
||||||||||||||||||
|
September 30, 2025 |
|
June 30, 2025 |
|
March 31, 2025 |
|
December 31, 2024 |
|
September 30, 2024 |
||||||||||
ACL-Loans: |
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of period |
$ |
29,256 |
|
|
$ |
29,485 |
|
|
$ |
29,007 |
|
|
$ |
27,752 |
|
|
$ |
36,083 |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
||||||||||
Residential real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial real estate |
|
— |
|
|
|
— |
|
|
|
(67 |
) |
|
|
(1,100 |
) |
|
|
(8,184 |
) |
Commercial business |
|
(14 |
) |
|
|
(15 |
) |
|
|
— |
|
|
|
(703 |
) |
|
|
(7,010 |
) |
Consumer |
|
(46 |
) |
|
|
(5 |
) |
|
|
(33 |
) |
|
|
(5 |
) |
|
|
(17 |
) |
Construction |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,155 |
) |
|
|
(616 |
) |
Total charge-offs |
|
(60 |
) |
|
|
(20 |
) |
|
|
(100 |
) |
|
|
(2,963 |
) |
|
|
(15,827 |
) |
Recoveries: |
|
|
|
|
|
|
|
|
|
||||||||||
Residential real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial real estate |
|
270 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,013 |
|
Commercial business |
|
86 |
|
|
|
112 |
|
|
|
4 |
|
|
|
4 |
|
|
|
(34 |
) |
Consumer |
|
12 |
|
|
|
10 |
|
|
|
36 |
|
|
|
5 |
|
|
|
1 |
|
Construction |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total recoveries |
|
368 |
|
|
|
122 |
|
|
|
40 |
|
|
|
9 |
|
|
|
980 |
|
Net loan recoveries (charge-offs) |
|
308 |
|
|
|
102 |
|
|
|
(60 |
) |
|
|
(2,954 |
) |
|
|
(14,847 |
) |
Provision (credit) for credit losses - loans |
|
420 |
|
|
|
(331 |
) |
|
|
538 |
|
|
|
4,209 |
|
|
|
6,516 |
|
Balance at end of period |
$ |
29,984 |
|
|
$ |
29,256 |
|
|
$ |
29,485 |
|
|
$ |
29,007 |
|
|
$ |
27,752 |
|
|
As of |
||||||||||||||||||
|
September 30, 2025 |
|
June 30, 2025 |
|
March 31, 2025 |
|
December 31, 2024 |
|
September 30, 2024 |
||||||||||
Asset quality: |
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans |
|
|
|
|
|
|
|
|
|
||||||||||
Residential real estate |
$ |
570 |
|
|
$ |
617 |
|
|
$ |
811 |
|
|
$ |
791 |
|
|
$ |
1,316 |
|
Commercial real estate |
|
14,667 |
|
|
|
16,387 |
|
|
|
17,946 |
|
|
|
44,814 |
|
|
|
46,360 |
|
Commercial business |
|
1,729 |
|
|
|
6,871 |
|
|
|
7,626 |
|
|
|
7,672 |
|
|
|
9,101 |
|
Construction |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,766 |
|
Consumer |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonaccrual loans |
|
16,966 |
|
|
|
23,875 |
|
|
|
26,383 |
|
|
|
53,277 |
|
|
|
65,543 |
|
Other real estate owned |
|
1,284 |
|
|
|
1,284 |
|
|
|
— |
|
|
|
8,299 |
|
|
|
— |
|
Total nonperforming assets |
$ |
18,250 |
|
|
$ |
25,159 |
|
|
$ |
26,383 |
|
|
$ |
61,576 |
|
|
$ |
65,543 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming loans as a % of total loans |
|
0.62 |
% |
|
|
0.89 |
% |
|
|
1.00 |
% |
|
|
1.97 |
% |
|
|
2.50 |
% |
Nonperforming assets as a % of total assets |
|
0.56 |
% |
|
|
0.78 |
% |
|
|
0.83 |
% |
|
|
1.88 |
% |
|
|
2.07 |
% |
ACL-loans as a % of total loans |
|
1.10 |
% |
|
|
1.10 |
% |
|
|
1.11 |
% |
|
|
1.07 |
% |
|
|
1.06 |
% |
ACL-loans as a % of nonperforming loans |
|
176.73 |
% |
|
|
122.54 |
% |
|
|
111.76 |
% |
|
|
54.44 |
% |
|
|
42.34 |
% |
Total past due loans to total loans |
|
0.76 |
% |
|
|
0.91 |
% |
|
|
1.08 |
% |
|
|
1.63 |
% |
|
|
2.48 |
% |
Financial Condition & Capital
Assets totaled
Period End Loan Composition |
September 30, 2025 |
|
December 31, 2024 |
|
September 30, 2024 |
|
Current YTD % Change |
|
Year over Year % Change |
|||||
Residential Real Estate |
$ |
33,625 |
|
$ |
42,766 |
|
$ |
45,553 |
|
(21.4 |
)% |
|
(26.2 |
)% |
Commercial Real Estate(1) |
|
1,897,896 |
|
|
1,899,134 |
|
|
1,887,942 |
|
(0.1 |
) |
|
0.5 |
|
Construction |
|
170,888 |
|
|
173,555 |
|
|
160,292 |
|
(1.5 |
) |
|
6.6 |
|
Total Real Estate Loans |
|
2,102,409 |
|
|
2,115,455 |
|
|
2,093,787 |
|
(0.6 |
) |
|
0.4 |
|
Commercial Business |
|
552,682 |
|
|
515,125 |
|
|
490,292 |
|
7.3 |
|
|
12.7 |
|
Consumer |
|
63,098 |
|
|
75,308 |
|
|
39,126 |
|
(16.2 |
) |
|
61.3 |
|
Total Loans |
$ |
2,718,189 |
|
$ |
2,705,888 |
|
$ |
2,623,205 |
|
0.5 |
% |
|
3.6 |
% |
(1) Includes owner occupied commercial real estate of |
||||||||||||||
Period End Deposit Composition |
September 30, 2025 |
|
December 31, 2024 |
|
September 30, 2024 |
|
Current YTD % Change |
|
Year over Year % Change |
|||||
Noninterest bearing demand |
$ |
397,408 |
|
$ |
321,875 |
|
$ |
295,552 |
|
23.5 |
% |
|
34.5 |
% |
NOW |
|
84,736 |
|
|
105,090 |
|
|
76,413 |
|
(19.4 |
) |
|
10.9 |
|
Money Market |
|
897,387 |
|
|
899,413 |
|
|
840,234 |
|
(0.2 |
) |
|
6.8 |
|
Savings |
|
95,242 |
|
|
90,220 |
|
|
87,212 |
|
5.6 |
|
|
9.2 |
|
Time |
|
1,282,642 |
|
|
1,370,972 |
|
|
1,388,760 |
|
(6.4 |
) |
|
(7.6 |
) |
Total Deposits |
$ |
2,757,415 |
|
$ |
2,787,570 |
|
$ |
2,688,171 |
|
(1.1 |
)% |
|
2.6 |
% |
Shareholders’ equity totaled
As of September 30, 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
We recommend reading this earnings release in conjunction with the Third Quarter 2025 Investor Presentation, located at https://investor.mybankwell.com/events-and-presentations/ and included as an exhibit to our October 23, 2025 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 October 23, 2025, 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
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
BANKWELL FINANCIAL GROUP, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (Dollars in thousands) |
|||||||||||||||||||
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks |
$ |
289,628 |
|
|
$ |
313,998 |
|
|
$ |
292,006 |
|
|
$ |
293,552 |
|
|
$ |
275,829 |
|
Federal funds sold |
|
5,732 |
|
|
|
8,466 |
|
|
|
12,922 |
|
|
|
13,972 |
|
|
|
15,508 |
|
Cash and cash equivalents |
|
295,360 |
|
|
|
322,464 |
|
|
|
304,928 |
|
|
|
307,524 |
|
|
|
291,337 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities |
|
|
|
|
|
|
|
|
|
||||||||||
Marketable equity securities, at fair value |
|
2,223 |
|
|
|
2,188 |
|
|
|
2,164 |
|
|
|
2,118 |
|
|
|
2,148 |
|
Available for sale investment securities, at fair value |
|
96,473 |
|
|
|
103,930 |
|
|
|
97,321 |
|
|
|
107,428 |
|
|
|
108,866 |
|
Held to maturity investment securities, at amortized cost |
|
29,538 |
|
|
|
36,434 |
|
|
|
36,478 |
|
|
|
36,553 |
|
|
|
34,886 |
|
Total investment securities |
|
128,234 |
|
|
|
142,552 |
|
|
|
135,963 |
|
|
|
146,099 |
|
|
|
145,900 |
|
Loans receivable (net of ACL-Loans of |
|
2,684,016 |
|
|
|
2,635,742 |
|
|
|
2,611,495 |
|
|
|
2,672,959 |
|
|
|
2,591,551 |
|
Accrued interest receivable |
|
15,633 |
|
|
|
14,741 |
|
|
|
15,409 |
|
|
|
14,535 |
|
|
|
14,714 |
|
Federal Home Loan Bank stock, at cost |
|
4,951 |
|
|
|
5,051 |
|
|
|
3,583 |
|
|
|
5,655 |
|
|
|
5,655 |
|
Premises and equipment, net |
|
22,387 |
|
|
|
23,020 |
|
|
|
22,978 |
|
|
|
23,856 |
|
|
|
24,780 |
|
Bank-owned life insurance |
|
53,846 |
|
|
|
53,488 |
|
|
|
53,136 |
|
|
|
52,791 |
|
|
|
52,443 |
|
Goodwill |
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
Deferred income taxes, net |
|
9,027 |
|
|
|
9,684 |
|
|
|
9,551 |
|
|
|
9,742 |
|
|
|
9,300 |
|
Other real estate owned |
|
1,284 |
|
|
|
1,284 |
|
|
|
— |
|
|
|
8,299 |
|
|
|
— |
|
Other assets |
|
26,636 |
|
|
|
25,978 |
|
|
|
24,261 |
|
|
|
24,427 |
|
|
|
22,811 |
|
Total assets |
$ |
3,243,963 |
|
|
$ |
3,236,593 |
|
|
$ |
3,183,893 |
|
|
$ |
3,268,476 |
|
|
$ |
3,161,080 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities |
|
|
|
|
|
|
|
|
|
||||||||||
Deposits |
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest bearing deposits |
$ |
397,408 |
|
|
$ |
397,195 |
|
|
$ |
349,525 |
|
|
$ |
321,875 |
|
|
$ |
295,552 |
|
Interest bearing deposits |
|
2,360,007 |
|
|
|
2,362,086 |
|
|
|
2,400,920 |
|
|
|
2,465,695 |
|
|
|
2,392,619 |
|
Total deposits |
|
2,757,415 |
|
|
|
2,759,281 |
|
|
|
2,750,445 |
|
|
|
2,787,570 |
|
|
|
2,688,171 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Advances from the Federal Home Loan Bank |
|
75,000 |
|
|
|
75,000 |
|
|
|
40,000 |
|
|
|
90,000 |
|
|
|
90,000 |
|
Subordinated debentures |
|
69,636 |
|
|
|
69,574 |
|
|
|
69,513 |
|
|
|
69,451 |
|
|
|
69,389 |
|
Accrued expenses and other liabilities |
|
49,121 |
|
|
|
49,448 |
|
|
|
48,721 |
|
|
|
50,935 |
|
|
|
45,594 |
|
Total liabilities |
|
2,951,172 |
|
|
|
2,953,303 |
|
|
|
2,908,679 |
|
|
|
2,997,956 |
|
|
|
2,893,154 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders’ equity |
|
|
|
|
|
|
|
|
|
||||||||||
Common stock, no par value |
|
119,353 |
|
|
|
118,698 |
|
|
|
118,439 |
|
|
|
119,108 |
|
|
|
118,429 |
|
Retained earnings |
|
174,008 |
|
|
|
165,495 |
|
|
|
157,971 |
|
|
|
152,656 |
|
|
|
151,257 |
|
Accumulated other comprehensive (loss) |
|
(570 |
) |
|
|
(903 |
) |
|
|
(1,196 |
) |
|
|
(1,244 |
) |
|
|
(1,760 |
) |
Total shareholders’ equity |
|
292,791 |
|
|
|
283,290 |
|
|
|
275,214 |
|
|
|
270,520 |
|
|
|
267,926 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total liabilities and shareholders’ equity |
$ |
3,243,963 |
|
|
$ |
3,236,593 |
|
|
$ |
3,183,893 |
|
|
$ |
3,268,476 |
|
|
$ |
3,161,080 |
|
BANKWELL FINANCIAL GROUP, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited) (Dollars in thousands, except share data) |
|||||||||||||||||||||||
|
For the Quarter Ended |
For the Nine Months Ended |
|||||||||||||||||||||
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||
Interest and dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and fees on loans |
$ |
46,328 |
|
|
$ |
44,128 |
|
|
$ |
43,475 |
|
$ |
42,851 |
|
$ |
43,596 |
|
$ |
133,931 |
|
$ |
129,981 |
|
Interest and dividends on securities |
|
1,410 |
|
|
|
1,478 |
|
|
|
1,445 |
|
|
1,482 |
|
|
1,390 |
|
|
4,333 |
|
|
3,710 |
|
Interest on cash and cash equivalents |
|
2,853 |
|
|
|
3,043 |
|
|
|
3,557 |
|
|
3,510 |
|
|
3,205 |
|
|
9,453 |
|
|
10,460 |
|
Total interest and dividend income |
|
50,591 |
|
|
|
48,649 |
|
|
|
48,477 |
|
|
47,843 |
|
|
48,191 |
|
|
147,717 |
|
|
144,151 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense on deposits |
|
22,585 |
|
|
|
23,083 |
|
|
|
24,772 |
|
|
25,640 |
|
|
25,579 |
|
|
70,440 |
|
|
75,618 |
|
Interest expense on borrowings |
|
2,019 |
|
|
|
1,630 |
|
|
|
1,639 |
|
|
2,004 |
|
|
1,895 |
|
|
5,288 |
|
|
5,450 |
|
Total interest expense |
|
24,604 |
|
|
|
24,713 |
|
|
|
26,411 |
|
|
27,644 |
|
|
27,474 |
|
|
75,728 |
|
|
81,068 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income |
|
25,987 |
|
|
|
23,936 |
|
|
|
22,066 |
|
|
20,199 |
|
|
20,717 |
|
|
71,989 |
|
|
63,083 |
|
Provision (credit) for credit losses |
|
372 |
|
|
|
(411 |
) |
|
|
463 |
|
|
4,458 |
|
|
6,296 |
|
|
424 |
|
|
18,162 |
|
Net interest income after provision (credit) for credit losses |
|
25,615 |
|
|
|
24,347 |
|
|
|
21,603 |
|
|
15,741 |
|
|
14,421 |
|
|
71,565 |
|
|
44,921 |
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank owned life insurance |
|
359 |
|
|
|
352 |
|
|
|
344 |
|
|
348 |
|
|
346 |
|
|
1,055 |
|
|
1,008 |
|
Service charges and fees |
|
779 |
|
|
|
674 |
|
|
|
602 |
|
|
589 |
|
|
575 |
|
|
2,055 |
|
|
1,374 |
|
Gains and fees from sales of loans |
|
1,372 |
|
|
|
1,080 |
|
|
|
442 |
|
|
24 |
|
|
133 |
|
|
2,894 |
|
|
499 |
|
Other |
|
(15 |
) |
|
|
(94 |
) |
|
|
117 |
|
|
3 |
|
|
102 |
|
|
8 |
|
|
(127 |
) |
Total noninterest income |
|
2,495 |
|
|
|
2,012 |
|
|
|
1,505 |
|
|
964 |
|
|
1,156 |
|
|
6,012 |
|
|
2,754 |
|
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Salaries and employee benefits |
|
7,995 |
|
|
|
7,521 |
|
|
|
7,052 |
|
|
5,056 |
|
|
6,223 |
|
|
22,568 |
|
|
18,690 |
|
Occupancy and equipment |
|
2,469 |
|
|
|
2,505 |
|
|
|
2,575 |
|
|
2,600 |
|
|
2,334 |
|
|
7,549 |
|
|
6,894 |
|
Professional services |
|
1,412 |
|
|
|
1,632 |
|
|
|
1,529 |
|
|
1,286 |
|
|
1,142 |
|
|
4,573 |
|
|
3,196 |
|
Data processing |
|
633 |
|
|
|
712 |
|
|
|
885 |
|
|
905 |
|
|
851 |
|
|
2,230 |
|
|
2,346 |
|
Director fees |
|
333 |
|
|
|
333 |
|
|
|
348 |
|
|
342 |
|
|
292 |
|
|
1,014 |
|
|
1,498 |
|
FDIC insurance |
|
610 |
|
|
|
684 |
|
|
|
779 |
|
|
862 |
|
|
853 |
|
|
2,073 |
|
|
2,488 |
|
Marketing |
|
140 |
|
|
|
218 |
|
|
|
142 |
|
|
175 |
|
|
73 |
|
|
500 |
|
|
277 |
|
Other |
|
1,039 |
|
|
|
941 |
|
|
|
831 |
|
|
1,418 |
|
|
1,097 |
|
|
2,811 |
|
|
3,018 |
|
Total noninterest expense |
|
14,631 |
|
|
|
14,546 |
|
|
|
14,141 |
|
|
12,644 |
|
|
12,865 |
|
|
43,318 |
|
|
38,407 |
|
Income before income tax expense |
|
13,479 |
|
|
|
11,813 |
|
|
|
8,967 |
|
|
4,061 |
|
|
2,712 |
|
|
34,259 |
|
|
9,268 |
|
Income tax expense |
|
3,401 |
|
|
|
2,725 |
|
|
|
2,079 |
|
|
1,098 |
|
|
786 |
|
|
8,205 |
|
|
2,461 |
|
Net income |
$ |
10,078 |
|
|
$ |
9,088 |
|
|
$ |
6,888 |
|
$ |
2,963 |
|
$ |
1,926 |
|
$ |
26,054 |
|
$ |
6,807 |
|
Earnings Per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
1.28 |
|
|
$ |
1.16 |
|
|
$ |
0.88 |
|
$ |
0.37 |
|
$ |
0.24 |
|
$ |
3.33 |
|
$ |
0.86 |
|
Diluted |
$ |
1.27 |
|
|
$ |
1.15 |
|
|
$ |
0.87 |
|
$ |
0.37 |
|
$ |
0.24 |
|
$ |
3.29 |
|
$ |
0.86 |
|
Weighted Average Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
7,774,887 |
|
|
|
7,777,469 |
|
|
|
7,670,224 |
|
|
7,713,970 |
|
|
7,715,040 |
|
|
7,741,244 |
|
|
7,708,768 |
|
Diluted |
|
7,844,785 |
|
|
|
7,819,829 |
|
|
|
7,740,521 |
|
|
7,727,412 |
|
|
7,720,895 |
|
|
7,819,609 |
|
|
7,731,454 |
|
Dividends per common share |
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
$ |
0.20 |
|
$ |
0.20 |
|
$ |
0.60 |
|
$ |
0.60 |
|
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 |
September 30, 2025 |
|
June 30, 2025 |
|
March 31, 2025 |
|
December 31, 2024 |
|
September 30, 2024 |
||||||||||
Total Equity |
$ |
292,791 |
|
|
$ |
283,290 |
|
|
$ |
275,214 |
|
|
$ |
270,520 |
|
|
$ |
267,926 |
|
Less: |
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill |
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
Other intangibles |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Tangible Common Equity |
$ |
290,202 |
|
|
$ |
280,701 |
|
|
$ |
272,625 |
|
|
$ |
267,931 |
|
|
$ |
265,337 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Assets |
$ |
3,243,963 |
|
|
$ |
3,236,593 |
|
|
$ |
3,183,893 |
|
|
$ |
3,268,476 |
|
|
$ |
3,161,080 |
|
Less: |
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill |
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
Other intangibles |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Tangible Assets |
$ |
3,241,374 |
|
|
$ |
3,234,004 |
|
|
$ |
3,181,304 |
|
|
$ |
3,265,887 |
|
|
$ |
3,158,491 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible Common Equity to Tangible Assets |
|
8.95 |
% |
|
|
8.68 |
% |
|
|
8.57 |
% |
|
|
8.20 |
% |
|
|
8.40 |
% |
|
As of |
|||||||||||||
Computation of Fully Diluted Tangible Book Value per Common Share |
September 30, 2025 |
|
June 30, 2025 |
|
March 31, 2025 |
|
December 31, 2024 |
|
September 30, 2024 |
|||||
Total shareholders' equity |
$ |
292,791 |
|
$ |
283,290 |
|
$ |
275,214 |
|
$ |
270,520 |
|
$ |
267,926 |
Less: |
|
|
|
|
|
|
|
|
|
|||||
Preferred stock |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Common shareholders' equity |
$ |
292,791 |
|
$ |
283,290 |
|
$ |
275,214 |
|
$ |
270,520 |
|
$ |
267,926 |
Less: |
|
|
|
|
|
|
|
|
|
|||||
Goodwill |
|
2,589 |
|
|
2,589 |
|
|
2,589 |
|
|
2,589 |
|
|
2,589 |
Other intangibles |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Tangible common shareholders' equity |
$ |
290,202 |
|
$ |
280,701 |
|
$ |
272,625 |
|
$ |
267,931 |
|
$ |
265,337 |
|
|
|
|
|
|
|
|
|
|
|||||
Common shares issued and outstanding |
|
7,877,443 |
|
|
7,873,387 |
|
|
7,888,013 |
|
|
7,859,873 |
|
|
7,858,573 |
|
|
|
|
|
|
|
|
|
|
|||||
Fully Diluted Tangible Book Value per Common Share |
$ |
36.84 |
|
$ |
35.65 |
|
$ |
34.56 |
|
$ |
34.09 |
|
$ |
33.76 |
BANKWELL FINANCIAL GROUP, INC. EARNINGS PER SHARE ("EPS") (unaudited) (Dollars in thousands, except share data) |
|||||||||||||||
|
For the Quarter Ended September 30, |
|
For the Nine Months Ended September 30, |
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
(In thousands, except per share data) |
||||||||||||||
Net income |
$ |
10,078 |
|
|
$ |
1,926 |
|
|
$ |
26,054 |
|
|
$ |
6,807 |
|
Dividends to participating securities(1) |
|
26 |
|
|
|
(38 |
) |
|
|
79 |
|
|
|
(117 |
) |
Undistributed earnings allocated to participating securities(1) |
|
(142 |
) |
|
|
(9 |
) |
|
|
(386 |
) |
|
|
(53 |
) |
Net income for earnings per share calculation |
|
9,962 |
|
|
|
1,879 |
|
|
|
25,747 |
|
|
|
6,637 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding, basic |
|
7,774,887 |
|
|
|
7,715,040 |
|
|
|
7,741,244 |
|
|
|
7,708,768 |
|
Effect of dilutive equity-based awards(2) |
|
69,898 |
|
|
|
5,825 |
|
|
|
78,365 |
|
|
|
22,686 |
|
Weighted average shares outstanding, diluted |
|
7,844,785 |
|
|
|
7,720,865 |
|
|
|
7,819,609 |
|
|
|
7,731,454 |
|
Net earnings per common share: |
|
|
|
|
|
|
|
||||||||
Basic earnings per common share |
$ |
1.28 |
|
|
$ |
0.24 |
|
|
$ |
3.33 |
|
|
$ |
0.86 |
|
Diluted earnings per common share |
$ |
1.27 |
|
|
$ |
0.24 |
|
|
$ |
3.29 |
|
|
$ |
0.86 |
|
(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 |
||||||||||||||||
|
September 30, 2025 |
|
September 30, 2024 |
||||||||||||||
|
Average Balance |
|
Interest |
|
Yield/ Rate (4) |
|
Average Balance |
|
Interest |
|
Yield/ Rate (4) |
||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and Fed funds sold |
$ |
278,698 |
|
$ |
2,853 |
|
4.06 |
% |
|
$ |
253,664 |
|
$ |
3,205 |
|
5.03 |
% |
Securities(1) |
|
142,677 |
|
|
1,463 |
|
4.10 |
|
|
|
147,431 |
|
|
1,390 |
|
3.78 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
1,856,645 |
|
|
29,662 |
|
6.25 |
|
|
|
1,905,506 |
|
|
28,288 |
|
5.81 |
|
Residential real estate |
|
34,518 |
|
|
510 |
|
5.91 |
|
|
|
47,481 |
|
|
736 |
|
6.20 |
|
Construction |
|
173,380 |
|
|
3,536 |
|
7.98 |
|
|
|
156,273 |
|
|
3,070 |
|
7.69 |
|
Commercial business |
|
572,187 |
|
|
11,634 |
|
7.96 |
|
|
|
512,507 |
|
|
10,783 |
|
8.23 |
|
Consumer |
|
63,627 |
|
|
986 |
|
6.15 |
|
|
|
41,845 |
|
|
719 |
|
6.84 |
|
Total loans |
|
2,700,357 |
|
|
46,328 |
|
6.71 |
|
|
|
2,663,612 |
|
|
43,596 |
|
6.40 |
|
Federal Home Loan Bank stock |
|
6,942 |
|
|
89 |
|
5.11 |
|
|
|
5,655 |
|
|
122 |
|
8.32 |
|
Total earning assets |
|
3,128,674 |
|
$ |
50,733 |
|
6.34 |
% |
|
|
3,070,362 |
|
$ |
48,313 |
|
6.16 |
% |
Other assets |
|
98,547 |
|
|
|
|
|
|
90,410 |
|
|
|
|
||||
Total assets |
$ |
3,227,221 |
|
|
|
|
|
$ |
3,160,772 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Liabilities and shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
NOW |
$ |
99,087 |
|
$ |
125 |
|
0.50 |
% |
|
$ |
94,958 |
|
$ |
44 |
|
0.18 |
% |
Money market |
|
883,440 |
|
|
8,479 |
|
3.81 |
|
|
|
832,430 |
|
|
8,597 |
|
4.11 |
|
Savings |
|
94,290 |
|
|
700 |
|
2.95 |
|
|
|
89,463 |
|
|
692 |
|
3.07 |
|
Time |
|
1,253,878 |
|
|
13,281 |
|
4.20 |
|
|
|
1,347,857 |
|
|
16,246 |
|
4.79 |
|
Total interest bearing deposits |
|
2,330,695 |
|
|
22,585 |
|
3.84 |
|
|
|
2,364,708 |
|
|
25,579 |
|
4.30 |
|
Borrowed Money |
|
169,867 |
|
|
2,020 |
|
4.72 |
|
|
|
159,349 |
|
|
1,895 |
|
4.73 |
|
Total interest bearing liabilities |
|
2,500,562 |
|
$ |
24,605 |
|
3.90 |
% |
|
|
2,524,057 |
|
$ |
27,474 |
|
4.33 |
% |
Noninterest bearing deposits |
|
383,153 |
|
|
|
|
|
|
303,213 |
|
|
|
|
||||
Other liabilities |
|
54,507 |
|
|
|
|
|
|
62,602 |
|
|
|
|
||||
Total liabilities |
|
2,938,222 |
|
|
|
|
|
|
2,889,872 |
|
|
|
|
||||
Shareholders' equity |
|
288,999 |
|
|
|
|
|
|
270,900 |
|
|
|
|
||||
Total liabilities and shareholders' equity |
$ |
3,227,221 |
|
|
|
|
|
$ |
3,160,772 |
|
|
|
|
||||
Net interest income(2) |
|
|
$ |
26,128 |
|
|
|
|
|
$ |
20,839 |
|
|
||||
Interest rate spread |
|
|
|
|
2.44 |
% |
|
|
|
|
|
1.83 |
% |
||||
Net Interest Margin(3) |
|
|
|
|
3.34 |
% |
|
|
|
|
|
2.72 |
% |
||||
(1) |
Average balances and yields for securities are based on amortized cost. |
|
(2) |
The adjustment for securities and loans taxable equivalency amounted to |
|
(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 Nine Months Ended |
||||||||||||||||
|
September 30, 2025 |
|
September 30, 2024 |
||||||||||||||
|
Average Balance |
|
Interest |
|
Yield/ Rate (4) |
|
Average Balance |
|
Interest |
|
Yield/ Rate (4) |
||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and Fed funds sold |
$ |
307,737 |
|
$ |
9,453 |
|
4.11 |
% |
|
$ |
273,138 |
|
$ |
10,460 |
|
5.12 |
% |
Securities(1) |
|
147,571 |
|
|
4,474 |
|
4.04 |
|
|
|
139,871 |
|
|
3,592 |
|
3.42 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
1,830,934 |
|
|
85,371 |
|
6.15 |
|
|
|
1,909,390 |
|
|
84,582 |
|
5.82 |
|
Residential real estate |
|
37,838 |
|
|
1,740 |
|
6.13 |
|
|
|
48,912 |
|
|
2,226 |
|
6.07 |
|
Construction |
|
182,857 |
|
|
10,856 |
|
7.83 |
|
|
|
158,884 |
|
|
8,913 |
|
7.37 |
|
Commercial business |
|
546,700 |
|
|
32,839 |
|
7.92 |
|
|
|
517,880 |
|
|
32,097 |
|
8.14 |
|
Consumer |
|
72,350 |
|
|
3,125 |
|
5.78 |
|
|
|
41,383 |
|
|
2,163 |
|
6.98 |
|
Total loans |
|
2,670,679 |
|
|
133,931 |
|
6.61 |
|
|
|
2,676,449 |
|
|
129,981 |
|
6.38 |
|
Federal Home Loan Bank stock |
|
5,522 |
|
|
286 |
|
6.90 |
|
|
|
5,670 |
|
|
357 |
|
8.43 |
|
Total earning assets |
|
3,131,509 |
|
$ |
148,144 |
|
6.24 |
% |
|
|
3,095,128 |
|
$ |
144,390 |
|
6.13 |
% |
Other assets |
|
92,451 |
|
|
|
|
|
|
92,249 |
|
|
|
|
||||
Total assets |
$ |
3,223,960 |
|
|
|
|
|
$ |
3,187,377 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Liabilities and shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
NOW |
$ |
102,129 |
|
$ |
311 |
|
0.41 |
% |
|
$ |
97,970 |
|
$ |
133 |
|
0.18 |
% |
Money market |
|
891,823 |
|
|
25,578 |
|
3.83 |
|
|
|
849,860 |
|
|
26,294 |
|
4.13 |
|
Savings |
|
91,313 |
|
|
2,026 |
|
2.97 |
|
|
|
91,135 |
|
|
2,093 |
|
3.07 |
|
Time |
|
1,301,450 |
|
|
42,525 |
|
4.37 |
|
|
|
1,319,031 |
|
|
47,098 |
|
4.77 |
|
Total interest bearing deposits |
|
2,386,715 |
|
|
70,440 |
|
3.95 |
|
|
|
2,357,996 |
|
|
75,618 |
|
4.28 |
|
Borrowed Money |
|
147,519 |
|
|
5,288 |
|
4.79 |
|
|
|
159,288 |
|
|
5,450 |
|
4.57 |
|
Total interest bearing liabilities |
|
2,534,234 |
|
$ |
75,728 |
|
4.00 |
% |
|
|
2,517,284 |
|
$ |
81,068 |
|
4.30 |
% |
Noninterest bearing deposits |
|
356,705 |
|
|
|
|
|
|
336,129 |
|
|
|
|
||||
Other liabilities |
|
51,354 |
|
|
|
|
|
|
62,631 |
|
|
|
|
||||
Total liabilities |
|
2,942,293 |
|
|
|
|
|
|
2,916,044 |
|
|
|
|
||||
Shareholders' equity |
|
281,667 |
|
|
|
|
|
|
271,333 |
|
|
|
|
||||
Total liabilities and shareholders' equity |
$ |
3,223,960 |
|
|
|
|
|
$ |
3,187,377 |
|
|
|
|
||||
Net interest income(2) |
|
|
$ |
72,416 |
|
|
|
|
|
$ |
63,322 |
|
|
||||
Interest rate spread |
|
|
|
|
2.24 |
% |
|
|
|
|
|
1.83 |
% |
||||
Net Interest Margin(3) |
|
|
|
|
3.08 |
% |
|
|
|
|
|
2.73 |
% |
||||
(1) |
Average balances and yields for securities are based on amortized cost. |
|
(2) |
The adjustment for securities and loans taxable equivalency amounted to |
|
(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/20251023516999/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
