Bankwell Financial Q3 earnings rise to $12.7M
The board declared a $0.20 quarterly cash dividend, payable November 20, 2026, to shareholders of record November 9, 2026.
Sentiment and the balance of points
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Form Type
8-K
Rhea-AI Filing Summary
Bankwell Financial Group, Inc. (BWFG) reported third-quarter 2026 GAAP net income of $12.7 million, or $1.58 per diluted share, compared with $10.1 million and $1.26 per diluted share in the third quarter of 2025. Revenue was $35.3 million versus $28.5 million a year earlier. Net interest margin was 3.71%, compared with 3.58% in the second quarter of 2026. Results included $3.0 million of core-conversion noninterest expense; non-GAAP operating net income was $15.0 million, or $1.86 per diluted share.
At September 30, 2026, nonperforming assets were 0.20% of total assets, versus 0.46% at June 30, 2026. Gross loans totaled $3.0 billion, up $142.6 million, or 5.0%, from December 31, 2025. The board declared a $0.20-per-share cash dividend, payable November 20, 2026, to shareholders of record November 9, 2026.
Updated full-year 2026 guidance calls for net interest income of $119 million to $121 million and noninterest income of $14 million to $15 million. Loan growth remains projected at 5% to 7%, and noninterest expense at $65 million to $67 million, excluding conversion costs. Additional conversion-related costs are expected in future quarters; termination-related costs that elevated third-quarter expenses are not expected to recur.
2 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointGAAP earnings: $12.7 million, versus $10.1 million in the third quarter of 2025.
- Moderate pointQuarterly revenue: $35.3 million, versus $28.5 million in the third quarter of 2025.
Negative
- Moderate point. Forward-looking: it has not happened yet and may not happen.Core conversion: $3.0 million Q3 expense; additional future costs expected.
Filing Explained
The company furnished its third-quarter results release and investor slides under Items 2.02 and 7.01; they are not treated as filed for Section 18 liability or incorporated by reference into other SEC filings.
8-K Event Classification
4 items: 2.02, 7.01, 8.01, 9.01
4 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
GAAP net income: $12.7 million
Diluted earnings per share: $1.58
Operating net income: $15.0 million
+5 more
8 metrics
GAAP net income
$12.7 million
Quarter ended September 30, 2026; $10.1 million in the third quarter of 2025
Diluted earnings per share
$1.58
Quarter ended September 30, 2026
Operating net income
$15.0 million
Non-GAAP measure for the quarter ended September 30, 2026
Core-conversion costs
$3.0 million
Noninterest expense in the third quarter of 2026
Net interest margin
3.71%
Third quarter of 2026; 3.58% in the second quarter of 2026
Nonperforming assets as a percentage of total assets
0.20%
As of September 30, 2026; 0.46% as of June 30, 2026
Quarterly cash dividend
$0.20 per share
Payable November 20, 2026, to shareholders of record November 9, 2026
Full-year net interest income guidance
$119 million to $121 million
Updated full-year 2026 guidance
Key Terms
Net Interest Margin, nonperforming assets, ACL-Loans, pre-tax, pre-provision net revenue, +1 more
5 terms
Net Interest Margin financial
"Net Interest Margin expanded to 3.71%"
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.
nonperforming assets financial
"nonperforming assets declined to 0.20% of total assets"
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.
ACL-Loans financial
"The ACL-Loans provided 430.65% coverage of total nonperforming loans"
pre-tax, pre-provision net revenue financial
"Pre-tax, pre-provision net revenue return on average assets"
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.
operating net income financial
"operating net income of $15.0 million"
Earnings Snapshot
GAAP net income: $12.7 million · Guidance included
Third quarter of 2026
GAAP net income
$12.7 million
versus $10.1 million in the third quarter of 2025
Diluted earnings per share
$1.58
versus $1.26 in the third quarter of 2025
Total revenue
$35.3 million
versus $28.5 million in the third quarter of 2025
Net interest margin
3.71%
versus 3.58% in the second quarter of 2026
Guidance
Updated full-year 2026 guidance: net interest income of $119 million to $121 million; noninterest income of $14 million to $15 million; loan growth of 5% to 7%; and noninterest expense of $65 million to $67 million, excluding conversion costs.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did BWFG earn in the third quarter of 2026?
Bankwell reported GAAP net income of $12.7 million, or $1.58 per diluted share, for the third quarter of 2026. Non-GAAP operating net income was $15.0 million, or $1.86 per diluted share, after adjustments that included core-conversion costs.
What dividend did BWFG declare?
The board declared a $0.20 per-share cash dividend, payable November 20, 2026, to shareholders of record November 9, 2026.
What is BWFG's full-year 2026 guidance?
Updated guidance calls for net interest income of $119 million to $121 million and noninterest income of $14 million to $15 million. The company maintained its loan-growth outlook of 5% to 7% and noninterest-expense outlook of $65 million to $67 million, excluding conversion costs.
How did core-conversion costs affect BWFG's third-quarter results?
The company attributed $3.0 million of third-quarter noninterest expense to the core conversion, primarily contract termination fees. Additional conversion-related costs are expected in future quarters, while the termination-related costs that elevated third-quarter expenses are not expected to recur.
AI-generated analysis. How Rhea-AI works. Not financial advice.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 29, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(203 ) 652-0166
(Address of Principal Executive Officers and Telephone Number)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||
Common Stock, no par value per share | ||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
| 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. | ☐ | ||||
| Item 2.02 | Results of Operations and Financial Condition | ||||
On A copy of the press release is included as Exhibit 99.1 to this current report on Form 8-K and is incorporated herein by reference. | |||||
| The information furnished under this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that section. The information shall not be deemed incorporated by reference into any other filing with the Securities and Exchange Commission made by the Company, regardless of any general incorporation language in such filing. | |||||
| Item 7.01 | Regulation FD Disclosure | ||||
On A copy of the Presentation Material is included as Exhibit 99.2 to this current report on Form 8-K and is incorporated herein by reference. | |||||
| The information furnished under this Item 7.01, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that section. The information shall not be deemed incorporated by reference into any other filing with the Securities and Exchange Commission made by the Company, regardless of any general incorporation language in such filing. | |||||
| Item 8.01 | Other Events | ||||
Quarterly Dividend Announcement On | |||||
| Item 9.01 | Financial Statements and Exhibits | ||||
| (a) | Not applicable. | ||||
| (b) | Not applicable. | ||||
| (c) | Not applicable. | ||||
| (d) | Exhibits. | ||||
| Exhibit Number | Description | ||||
| 99.1 | Press Release Dated October 29, 2026 | ||||
| 99.2 | Presentation Materials | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
| SIGNATURES | |||||
| Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. | |||||
| BANKWELL FINANCIAL GROUP, INC. | |||||
| Registrant | |||||
By: /s/ Courtney E. Sacchetti | |||||
| Courtney E. Sacchetti | |||||
| Executive Vice President | |||||
| and Chief Financial Officer | |||||
BANKWELL FINANCIAL GROUP REPORTS RECORD EARNINGS FOR THE THIRD QUARTER, DECLARES FOURTH QUARTER DIVIDEND
New Canaan, CT – October 29, 2026 – Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $12.7 million, or $1.58 per share for the third quarter of 2026, versus $12.4 million, or $1.52 per share, for the second quarter of 2026. The Company's Board of Directors declared a $0.20 per share cash dividend, payable November 20, 2026 to shareholders of record on November 9, 2026.
The Company’s reported results include $3.0 million of non-interest expense attributed to core conversion costs incurred during the third quarter of 2026. For the third quarter of 2026, the Company reported GAAP net income of $12.7 million and operating net income(1) of $15.0 million. Operating results are non-GAAP financial measures that exclude certain nonrecurring or transaction-related expenses. Management believes these measures provide additional insight into underlying operating performance; however, they should be considered in addition to, and not as a substitute for, results prepared in accordance with GAAP.
| September 30, 2026 | |||||||||||
| (In thousands, except per share data) | As Reported | Operating Adjustment | Operating(1) | ||||||||
| Return on average assets | 1.45 | % | 0.26 | % | 1.71 | % | |||||
| Return on average tangible shareholders' equity | 15.28 | % | 2.74 | % | 18.02 | % | |||||
| Efficiency ratio | 56.1 | % | (8.6) | % | 47.5 | % | |||||
| Earnings per common share - diluted | $ | 1.58 | $ | 0.28 | $ | 1.86 | |||||
| Pre-tax, pre-provision net revenue return on average assets | 1.76 | % | 0.35 | % | 2.11 | % | |||||
| Pre-tax, pre-provision net revenue | $ | 15,498 | $ | 3,041 | $ | 18,539 | |||||
| Net income | $ | 12,735 | $ | 2,281 | $ | 15,016 | |||||
(1) Non-GAAP Financial Measure, refer to the "Non-GAAP Financial Measures" section of this document for additional detail.
Discussion of Outlook; Bankwell Financial Group Chief Executive Officer, Christopher R. Gruseke:
"We delivered record earnings for the third quarter, with GAAP net income of $12.7 million, or $1.58 per share, despite absorbing $3.0 million of costs related to our core conversion. Excluding these costs, operating net income was $15.0 million, or $1.86 per share, and our operating efficiency ratio was 47.5%. These results reflect continued improvement across the Company, as Net Interest Margin expanded to 3.71%, nonperforming assets declined to 0.20% of total assets, and our SBA business continued to make a meaningful contribution to non-interest income.
Our third-quarter results demonstrate the benefit of the investments and strategic initiatives we have pursued over the past several years. We continue to grow the balance sheet, diversify revenue, strengthen asset quality and invest in the people and technology necessary to support the Company’s future growth. The core conversion is an important part of that investment and will provide enhanced capabilities and greater scalability to support our strategic priorities and future growth.
Given our year-to-date performance, we are updating our full-year 2026 guidance. We now expect net interest income of $119 to $121 million and non-interest income of $14 to $15 million, reflecting continued strength in our SBA platform. We maintain our outlook for loan growth of 5% to 7% and non-interest expense of $65 to $67 million, excluding conversion costs.
Finally, I want to recognize the tremendous efforts of our team. The results we are reporting are the product of a great deal of hard work, an unwavering commitment to our clients, and disciplined execution of the strategy we have put in place. I’m proud of what our people have accomplished together and excited about the opportunities ahead."
1
Key Points for Third Quarter and Bankwell’s Outlook
Asset Quality Strengthens; Capital Remains Strong
•Nonperforming loans decreased $8.7 million to $7.1 million in the third-quarter of 2026, primarily reflecting the note sale of a suburban retail CRE loan in Westchester County, NY, that had been modified during the COVID-19 pandemic.
•Nonperforming assets declined to 0.20% of total assets at September 30, 2026, compared with 0.46% at June 30, 2026.
•Net recoveries totaled $1.4 million for the quarter ended September 30, 2026. The ACL-Loans provided 430.65% coverage of total nonperforming loans at September 30, 2026 compared to 193.14% at June 30, 2026.
•Tangible common equity to tangible assets increased to 9.33%, and fully diluted tangible book value per common share increased to $41.59.
Balance Sheet Growth and Continued Net Interest Margin Expansion
•Gross loans increased $22.9 million during the quarter and $142.6 million, or 5.0% year-to-date.
•Net interest margin expanded 13 basis points to 3.71% for the third quarter of 2026, compared to 3.58% for the second quarter of 2026, reflecting higher earning-asset yields and flat funding costs.
•Net interest income increased to $31.4 million, compared with $29.5 million in the linked quarter.
•Earning asset yields expanded 8 basis points to 6.34% for the quarter ended September 30, 2026, compared to the linked quarter.
Strong SBA Performance Drives Noninterest Income Growth
•SBA loan sale gains contributed $2.8 million of the Company's $4.0 million in total noninterest income for the quarter ended September 30, 2026, bringing 2026 year-to-date gains to $7.6 million, compared to $2.9 million 2025 year-to-date gains.
•Noninterest income as a percentage of revenue for the quarter ended September 30, 2026 was 11.20%, compared to 8.76% for the quarter ended September 30, 2025.
•The SBA Lending division delivered $30.1 million in originations in the third quarter of 2026, bringing the total year-to-date originations to $90.2 million.
Investment in Technology and Operating Infrastructure
•The Company is undertaking a core conversion initiative as part of its broader investment in technology and operating infrastructure to expand capabilities, improve efficiency and scalability, and support future growth.
•Third-quarter results included $3.0 million of core conversion costs, primarily consisting of termination fees.
•Excluding these costs, operating net income was $15.0 million(1), operating diluted EPS was $1.86(1) and the operating efficiency ratio was 47.5%(1), demonstrating the strength of the Company's underlying operating performance.
•The Company expects to incur additional core conversion-related costs in future quarters as implementation activities progress; however, third-quarter costs were elevated by termination-related costs that are not expected to recur in future periods.
(1) Non-GAAP Financial Measure, refer to the "Non-GAAP Financial Measures" section of this document for additional detail.
2
Third Quarter 2026 Financial Highlights and Key Performance Indicators (KPIs):
| September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||||||||||||
Return on average assets(1)(6) | 1.45 | % | 1.46 | % | 1.35 | % | 1.11 | % | 1.24 | % | |||||||||||||||||||
Pre-tax, pre-provision net revenue return on average assets(1)(6) | 1.76 | % | 2.07 | % | 1.60 | % | 1.80 | % | 1.70 | % | |||||||||||||||||||
Return on average shareholders' equity(1)(6) | 15.16 | % | 15.49 | % | 14.88 | % | 12.20 | % | 13.84 | % | |||||||||||||||||||
Return on average tangible shareholders' equity(1)(6) | 15.28 | % | 15.61 | % | 15.00 | % | 12.31 | % | 13.96 | % | |||||||||||||||||||
Net Interest Margin(1)(6)(7) | 3.71 | % | 3.58 | % | 3.28 | % | 3.40 | % | 3.34 | % | |||||||||||||||||||
Efficiency Ratio(1)(3) | 56.1 | % | 47.5 | % | 55.8 | % | 50.8 | % | 51.4 | % | |||||||||||||||||||
Noninterest expense to average assets(1)(6) | 2.26 | % | 1.80 | % | 2.03 | % | 1.87 | % | 1.80 | % | |||||||||||||||||||
Net loan (recoveries) charge-offs as a percentage of average loans(1)(6) | (0.05) | % | 0.00 | % | 0.01 | % | 0.00 | % | (0.01) | % | |||||||||||||||||||
Dividend payout ratio(1)(4) | 12.66 | % | 13.16 | % | 14.18 | % | 17.54 | % | 15.87 | % | |||||||||||||||||||
Fully diluted tangible book value per common share(1)(2) | $ | 41.59 | $ | 40.25 | $ | 38.79 | $ | 37.84 | $ | 36.84 | |||||||||||||||||||
Total capital to risk-weighted assets(1)(5) | 12.67 | % | 12.70 | % | 13.00 | % | 12.94 | % | 13.48 | % | |||||||||||||||||||
Total common equity tier 1 capital to risk-weighted assets(1)(5) | 11.64 | % | 11.66 | % | 11.97 | % | 11.87 | % | 12.39 | % | |||||||||||||||||||
Tier I Capital to Average Assets(1)(5) | 10.25 | % | 10.36 | % | 10.32 | % | 10.56 | % | 10.71 | % | |||||||||||||||||||
Tangible common equity to tangible assets(1)(2) | 9.33 | % | 9.24 | % | 9.17 | % | 8.90 | % | 8.95 | % | |||||||||||||||||||
| Earnings per common share - diluted | $ | 1.58 | $ | 1.52 | $ | 1.41 | $ | 1.14 | $ | 1.26 | |||||||||||||||||||
| Common shares issued and outstanding | 7,971,972 | 7,973,180 | 7,973,180 | 7,899,943 | 7,877,443 | ||||||||||||||||||||||||
(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 assets is calculated by dividing PPNR (calculated as set forth in 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 (recoveries) charge-offs as a percentage of average loans is calculated by dividing net loan (recoveries) charge offs by average total loans.
(7) Based on a fully tax equivalent basis.
3
Pre-Tax, Pre-Provision Net Revenue(1) ("PPNR")
PPNR for the quarter ended September 30, 2026 was $15.5 million, a decrease of 11.6% from $17.5 million recognized for the quarter ended June 30, 2026.
| For the Quarter Ended | ||||||||||||||||||||||||||||||||
| (Dollars in thousands) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||||||||||||||
| Net interest income | $ | 31,371 | $ | 29,503 | $ | 26,886 | $ | 26,946 | $ | 25,987 | ||||||||||||||||||||||
| Total noninterest income | 3,956 | 3,280 | 3,343 | 3,376 | 2,495 | |||||||||||||||||||||||||||
| Total revenues | 35,327 | 32,783 | 30,229 | 30,322 | 28,482 | |||||||||||||||||||||||||||
| Total noninterest expense | 19,829 | 15,255 | 16,889 | 15,470 | 14,631 | |||||||||||||||||||||||||||
| PPNR | $ | 15,498 | $ | 17,528 | $ | 13,340 | $ | 14,852 | $ | 13,851 | ||||||||||||||||||||||
(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, 2026 were $35.3 million, compared with $32.8 million in the previous quarter. The increase in revenues was primarily driven by higher interest income resulting from increased earning-asset yields and higher average earning-asset balances.
•Noninterest expense for the quarter ended September 30, 2026 was $19.8 million, compared with $15.3 million in the previous quarter. The increase in noninterest expense was attributed to $3.0 million of core conversion related costs, primarily contract termination fees, as well as an increase in salaries and employee benefits due to ongoing investments in talent to support growth.
Allowance for Credit Losses - Loans ("ACL-Loans")
The ACL-Loans was $30.7 million as of September 30, 2026 compared to $30.6 million as of June 30, 2026. The ACL-Loans as a percentage of total loans was 1.03% as of September 30, 2026 compared to 1.03% as of June 30, 2026. The credit for credit losses - loans was $1.4 million for the quarter ended September 30, 2026.
Total nonperforming loans decreased $8.7 million to $7.1 million as of September 30, 2026, when compared to the previous quarter, primarily reflecting the note sale of a suburban retail CRE loan in Westchester County, NY, that had been modified during the COVID-19 pandemic. Nonperforming assets as a percentage of total assets decreased to 0.20% at September 30, 2026, compared to the previous quarter's ratio of 0.46%. As of September 30, 2026, the ACL-Loans provided 430.65% coverage of total nonperforming loans.
4
BANKWELL FINANCIAL GROUP, INC.
ASSET QUALITY (unaudited)
(Dollars in thousands)
| For the Quarter Ended | |||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||||||||||||
| ACL-Loans: | |||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 30,627 | $ | 29,580 | $ | 30,705 | $ | 29,984 | $ | 29,256 | |||||||||||||||||||
| Charge-offs: | |||||||||||||||||||||||||||||
| Residential real estate | — | — | — | — | — | ||||||||||||||||||||||||
| Commercial real estate | (606) | — | — | — | — | ||||||||||||||||||||||||
| Commercial business | (499) | (13) | (148) | — | (14) | ||||||||||||||||||||||||
| Consumer | (11) | (35) | (73) | — | (46) | ||||||||||||||||||||||||
| Construction | — | — | — | — | — | ||||||||||||||||||||||||
| Total charge-offs | (1,116) | (48) | (221) | — | (60) | ||||||||||||||||||||||||
| Recoveries: | |||||||||||||||||||||||||||||
| Residential real estate | — | — | — | — | — | ||||||||||||||||||||||||
| Commercial real estate | 2,543 | 10 | 5 | 7 | 272 | ||||||||||||||||||||||||
| Commercial business | 9 | 8 | 15 | 23 | 92 | ||||||||||||||||||||||||
| Consumer | 3 | 31 | 33 | 10 | 4 | ||||||||||||||||||||||||
| Construction | — | — | — | — | — | ||||||||||||||||||||||||
| Total recoveries | 2,555 | 49 | 53 | 40 | 368 | ||||||||||||||||||||||||
| Net loan recoveries (charge-offs) | 1,439 | 1 | (168) | 40 | 308 | ||||||||||||||||||||||||
| (Credit) provision for credit losses - loans | (1,356) | 1,046 | (957) | 681 | 420 | ||||||||||||||||||||||||
| Balance at end of period | $ | 30,710 | $ | 30,627 | $ | 29,580 | $ | 30,705 | $ | 29,984 | |||||||||||||||||||
| As of | |||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||||||||||||
| Asset quality: | |||||||||||||||||||||||||||||
| Nonaccrual loans | |||||||||||||||||||||||||||||
| Residential real estate | $ | 513 | $ | 530 | $ | 544 | $ | 557 | $ | 570 | |||||||||||||||||||
| Commercial real estate | 4,884 | 13,923 | 17,112 | 14,445 | 14,667 | ||||||||||||||||||||||||
| Commercial business | 1,734 | 1,404 | 1,380 | 1,302 | 1,729 | ||||||||||||||||||||||||
| Construction | — | — | — | — | — | ||||||||||||||||||||||||
| Consumer | — | — | — | — | — | ||||||||||||||||||||||||
| Total nonaccrual loans | 7,131 | 15,857 | 19,036 | 16,304 | 16,966 | ||||||||||||||||||||||||
| Other real estate owned | — | — | — | — | 1,284 | ||||||||||||||||||||||||
| Total nonperforming assets | $ | 7,131 | $ | 15,857 | $ | 19,036 | $ | 16,304 | $ | 18,250 | |||||||||||||||||||
| Nonperforming loans as a % of total loans | 0.24 | % | 0.54 | % | 0.66 | % | 0.57 | % | 0.62 | % | |||||||||||||||||||
| Nonperforming assets as a % of total assets | 0.20 | % | 0.46 | % | 0.56 | % | 0.49 | % | 0.56 | % | |||||||||||||||||||
| ACL-loans as a % of total loans | 1.03 | % | 1.03 | % | 1.03 | % | 1.08 | % | 1.10 | % | |||||||||||||||||||
| ACL-loans as a % of nonperforming loans | 430.65 | % | 193.14 | % | 155.39 | % | 188.33 | % | 176.73 | % | |||||||||||||||||||
| Total past due loans to total loans | 0.32 | % | 0.59 | % | 0.62 | % | 0.31 | % | 0.76 | % | |||||||||||||||||||
5
Financial Condition & Capital
Assets totaled $3.6 billion at September 30, 2026, an increase of $195.4 million, or 5.8% compared to December 31, 2025. Gross loans totaled $3.0 billion at September 30, 2026, an increase of $142.6 million, or 5.0% compared to December 31, 2025. Deposits totaled $3.0 billion at September 30, 2026, an increase of $138.2 million, or 4.9% compared to December 31, 2025. Brokered deposits decreased $52.1 million or 9.3%, when compared to December 31, 2025.
| Period End Loan Composition | September 30, 2026 | December 31, 2025 | September 30, 2025 | Current YTD % Change | Year over Year % Change | ||||||||||||||||||||||||
| Residential Real Estate | $ | 27,503 | $ | 33,139 | $ | 33,625 | (17.0) | % | (18.2) | % | |||||||||||||||||||
Commercial Real Estate(1) | 2,027,574 | 1,930,979 | 1,897,896 | 5.0 | 6.8 | ||||||||||||||||||||||||
| Construction | 130,660 | 153,778 | 170,888 | (15.0) | (23.5) | ||||||||||||||||||||||||
| Total Real Estate Loans | 2,185,737 | 2,117,896 | 2,102,409 | 3.2 | 4.0 | ||||||||||||||||||||||||
| Commercial Business | 726,640 | 645,321 | 552,682 | 12.6 | 31.5 | ||||||||||||||||||||||||
| Consumer | 70,249 | 76,855 | 63,098 | (8.6) | 11.3 | ||||||||||||||||||||||||
| Total Loans | $ | 2,982,626 | $ | 2,840,072 | $ | 2,718,189 | 5.0 | % | 9.7 | % | |||||||||||||||||||
(1) Includes owner occupied commercial real estate of $0.8 billion at September 30, 2026, $0.8 billion at December 31, 2025, and $0.7 billion at September 30, 2025, respectively. | |||||||||||||||||||||||||||||
| Period End Deposit Composition | September 30, 2026 | December 31, 2025 | September 30, 2025 | Current YTD % Change | Year over Year % Change | ||||||||||||||||||||||||
| Noninterest bearing demand | $ | 453,085 | $ | 403,652 | $ | 397,408 | 12.2 | % | 14.0 | % | |||||||||||||||||||
| NOW | 101,033 | 90,205 | 84,736 | 12.0 | 19.2 | ||||||||||||||||||||||||
| Money Market | 1,240,940 | 1,007,844 | 897,387 | 23.1 | 38.3 | ||||||||||||||||||||||||
| Savings | 98,072 | 97,418 | 95,242 | 0.7 | 3.0 | ||||||||||||||||||||||||
| Time | 1,074,550 | 1,230,362 | 1,282,642 | (12.7) | (16.2) | ||||||||||||||||||||||||
| Total Deposits | $ | 2,967,680 | $ | 2,829,481 | $ | 2,757,415 | 4.9 | % | 7.6 | % | |||||||||||||||||||
Shareholders’ equity totaled $334.1 million as of September 30, 2026, an increase of $32.6 million compared to December 31, 2025, primarily a result of year-to-date net income of $36.4 million. The increase was partially offset by dividends paid of $4.7 million.
As of September 30, 2026, the Bank's regulatory capital ratios were all above the regulatory thresholds for 'well capitalized' institutions, with total risk-based capital, common-equity tier 1 capital and leverage ratios at 12.67%, 11.64%, and 10.25%, respectively.
6
We recommend reading this earnings release in conjunction with the Third Quarter 2026 Investor Presentation, located at https://investor.mybankwell.com/events-and-presentations/ and included as an exhibit to our October 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 October 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 provides businesses and professionals with a range of commercial financing solutions, including working capital lines of credit, SBA loans, acquisition financing, and commercial mortgages, along with treasury management and deposit services. Bankwell emphasizes accessibility, expertise, and responsiveness through experienced local banking teams serving its markets.
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, Inc. 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, efficiency ratio, noninterest expense to average assets, return on average shareholders' equity, return on average tangible shareholders' equity, pre-tax, pre-provision net revenue, net interest margin, net loan (recoveries) charge-offs as a percentage of average loans, pre-tax, pre-provision net revenue on average assets, the dividend payout ratio, operating net income, operating return on average assets, operating return on average tangible shareholders' equity, operating efficiency ratio, operating earnings per common share-diluted, operating pre-tax, pre-provision net revenue return on average assets, and operating pre-tax, pre-provision net revenue return 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)".
7
BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED BALANCE SHEETS (unaudited)
(Dollars in thousands)
| September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||
| Cash and due from banks | $ | 239,023 | $ | 191,378 | $ | 208,904 | $ | 214,567 | $ | 289,628 | |||||||||||||||||||
| Federal funds sold | 16,526 | 12,018 | 8,997 | 10,354 | 5,732 | ||||||||||||||||||||||||
| Cash and cash equivalents | 255,549 | 203,396 | 217,901 | 224,921 | 295,360 | ||||||||||||||||||||||||
| Investment securities | |||||||||||||||||||||||||||||
| Marketable equity securities, at fair value | 2,193 | 2,263 | 2,254 | 2,248 | 2,223 | ||||||||||||||||||||||||
| Available for sale investment securities, at fair value | 168,763 | 174,036 | 155,934 | 160,409 | 96,473 | ||||||||||||||||||||||||
| Held to maturity investment securities, at amortized cost | 29,242 | 29,314 | 29,386 | 29,465 | 29,538 | ||||||||||||||||||||||||
| Total investment securities | 200,198 | 205,613 | 187,574 | 192,122 | 128,234 | ||||||||||||||||||||||||
| Loans receivable (net of ACL-Loans of $30,710, $30,627, $29,580, $30,705, $29,984, at September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025, and September 30, 2025, respectively) | 2,947,719 | 2,924,890 | 2,832,678 | 2,804,441 | 2,684,016 | ||||||||||||||||||||||||
| Accrued interest receivable | 17,536 | 16,270 | 16,029 | 16,143 | 15,633 | ||||||||||||||||||||||||
| Federal Home Loan Bank stock, at cost | 7,057 | 3,143 | 4,207 | 6,207 | 4,951 | ||||||||||||||||||||||||
| Premises and equipment, net | 19,725 | 20,068 | 20,947 | 21,582 | 22,387 | ||||||||||||||||||||||||
| Bank-owned life insurance | 55,303 | 54,931 | 54,566 | 54,207 | 53,846 | ||||||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||||||||||||
| Deferred income taxes, net | 11,104 | 9,992 | 11,436 | 11,356 | 9,027 | ||||||||||||||||||||||||
| Other real estate owned | — | — | — | — | 1,284 | ||||||||||||||||||||||||
| Other assets | 38,495 | 34,678 | 25,932 | 26,291 | 26,636 | ||||||||||||||||||||||||
| Total assets | $ | 3,555,275 | $ | 3,475,570 | $ | 3,373,859 | $ | 3,359,859 | $ | 3,243,963 | |||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||
| Deposits | |||||||||||||||||||||||||||||
| Noninterest bearing deposits | $ | 453,085 | $ | 472,008 | $ | 428,384 | $ | 403,652 | $ | 397,408 | |||||||||||||||||||
| Interest bearing deposits | 2,514,595 | 2,528,522 | 2,456,865 | 2,425,829 | 2,360,007 | ||||||||||||||||||||||||
| Total deposits | 2,967,680 | 3,000,530 | 2,885,249 | 2,829,481 | 2,757,415 | ||||||||||||||||||||||||
| Advances from the Federal Home Loan Bank | 125,000 | 30,000 | 60,000 | 110,000 | 75,000 | ||||||||||||||||||||||||
| Subordinated debentures | 69,882 | 69,820 | 69,759 | 69,697 | 69,636 | ||||||||||||||||||||||||
| Accrued expenses and other liabilities | 58,578 | 51,720 | 46,985 | 49,192 | 49,121 | ||||||||||||||||||||||||
| Total liabilities | 3,221,140 | 3,152,070 | 3,061,993 | 3,058,370 | 2,951,172 | ||||||||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||||||||||
| Common stock, no par value | 122,909 | 121,997 | 121,060 | 120,118 | 119,353 | ||||||||||||||||||||||||
| Retained earnings | 213,229 | 202,073 | 191,281 | 181,587 | 174,008 | ||||||||||||||||||||||||
| Accumulated other comprehensive (loss) | (2,003) | (570) | (475) | (216) | (570) | ||||||||||||||||||||||||
| Total shareholders’ equity | 334,135 | 323,500 | 311,866 | 301,489 | 292,791 | ||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,555,275 | $ | 3,475,570 | $ | 3,373,859 | $ | 3,359,859 | $ | 3,243,963 | |||||||||||||||||||
8
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, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||||||||||||||||||||||||||||
| Interest and dividend income | |||||||||||||||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 50,760 | $ | 48,423 | $ | 46,787 | $ | 46,739 | $ | 46,328 | $ | 145,970 | $ | 133,931 | |||||||||||||||||||||||||||
| Interest and dividends on securities | 2,125 | 1,919 | 1,784 | 1,834 | 1,410 | 5,828 | 4,333 | ||||||||||||||||||||||||||||||||||
| Interest on cash and cash equivalents | 1,937 | 1,894 | 1,965 | 2,037 | 2,853 | 5,796 | 9,453 | ||||||||||||||||||||||||||||||||||
| Total interest and dividend income | 54,822 | 52,236 | 50,536 | 50,610 | 50,591 | 157,594 | 147,717 | ||||||||||||||||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||||||||||||||||||
| Interest expense on deposits | 21,774 | 21,267 | 21,930 | 22,388 | 22,585 | 64,971 | 70,440 | ||||||||||||||||||||||||||||||||||
| Interest expense on borrowings | 1,677 | 1,466 | 1,720 | 1,276 | 2,019 | 4,863 | 5,288 | ||||||||||||||||||||||||||||||||||
| Total interest expense | 23,451 | 22,733 | 23,650 | 23,664 | 24,604 | 69,834 | 75,728 | ||||||||||||||||||||||||||||||||||
| Net interest income | 31,371 | 29,503 | 26,886 | 26,946 | 25,987 | 87,760 | 71,989 | ||||||||||||||||||||||||||||||||||
| (Credit) provision for credit losses | (1,267) | 1,228 | (1,029) | 616 | 372 | (1,068) | 424 | ||||||||||||||||||||||||||||||||||
| Net interest income after (credit) provision for credit losses | 32,638 | 28,275 | 27,915 | 26,330 | 25,615 | 88,828 | 71,565 | ||||||||||||||||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||||||||||||||||
| Bank owned life insurance | 372 | 366 | 358 | 361 | 359 | 1,096 | 1,055 | ||||||||||||||||||||||||||||||||||
| Service charges and fees | 951 | 665 | 780 | 771 | 779 | 2,396 | 2,055 | ||||||||||||||||||||||||||||||||||
| Gains and fees from sales of loans | 2,806 | 2,398 | 2,425 | 2,184 | 1,372 | 7,629 | 2,894 | ||||||||||||||||||||||||||||||||||
| Other | (173) | (149) | (220) | 60 | (15) | (542) | 8 | ||||||||||||||||||||||||||||||||||
| Total noninterest income | 3,956 | 3,280 | 3,343 | 3,376 | 2,495 | 10,579 | 6,012 | ||||||||||||||||||||||||||||||||||
| Noninterest expense | |||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 10,363 | 8,678 | 9,830 | 7,717 | 7,995 | 28,871 | 22,568 | ||||||||||||||||||||||||||||||||||
| Occupancy and equipment | 2,729 | 2,816 | 2,705 | 2,575 | 2,469 | 8,250 | 7,549 | ||||||||||||||||||||||||||||||||||
| Professional services | 1,500 | 1,364 | 1,393 | 1,415 | 1,412 | 4,257 | 4,573 | ||||||||||||||||||||||||||||||||||
| Data processing | 687 | 694 | 716 | 877 | 633 | 2,097 | 2,230 | ||||||||||||||||||||||||||||||||||
| Director fees | 357 | 357 | 363 | 337 | 333 | 1,077 | 1,014 | ||||||||||||||||||||||||||||||||||
| FDIC insurance | 585 | 530 | 543 | 612 | 610 | 1,658 | 2,073 | ||||||||||||||||||||||||||||||||||
| Marketing | 98 | 129 | 126 | 108 | 140 | 353 | 500 | ||||||||||||||||||||||||||||||||||
| Other | 3,510 | 687 | 1,213 | 1,829 | 1,039 | 5,410 | 2,811 | ||||||||||||||||||||||||||||||||||
| Total noninterest expense | 19,829 | 15,255 | 16,889 | 15,470 | 14,631 | 51,973 | 43,318 | ||||||||||||||||||||||||||||||||||
| Income before income tax expense | 16,765 | 16,300 | 14,369 | 14,236 | 13,479 | 47,434 | 34,259 | ||||||||||||||||||||||||||||||||||
| Income tax expense | 4,030 | 3,928 | 3,094 | 5,092 | 3,401 | 11,052 | 8,205 | ||||||||||||||||||||||||||||||||||
| Net income | $ | 12,735 | $ | 12,372 | $ | 11,275 | $ | 9,144 | $ | 10,078 | $ | 36,382 | $ | 26,054 | |||||||||||||||||||||||||||
| Earnings Per Common Share: | |||||||||||||||||||||||||||||||||||||||||
| Basic | $ | 1.60 | $ | 1.55 | $ | 1.42 | $ | 1.16 | $ | 1.27 | $ | 4.58 | $ | 3.31 | |||||||||||||||||||||||||||
| Diluted | $ | 1.58 | $ | 1.52 | $ | 1.41 | $ | 1.14 | $ | 1.26 | $ | 4.52 | $ | 3.27 | |||||||||||||||||||||||||||
| Weighted Average Common Shares Outstanding: | |||||||||||||||||||||||||||||||||||||||||
| Basic | 7,858,046 | 7,856,210 | 7,724,253 | 7,776,740 | 7,774,887 | 7,813,326 | 7,741,244 | ||||||||||||||||||||||||||||||||||
| Diluted | 7,948,140 | 7,980,973 | 7,800,935 | 7,858,047 | 7,844,785 | 7,910,825 | 7,819,609 | ||||||||||||||||||||||||||||||||||
| Dividends per common share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.60 | $ | 0.60 | |||||||||||||||||||||||||||
9
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, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||||||||||||||||
| Total Equity | $ | 334,135 | $ | 323,500 | $ | 311,866 | $ | 301,489 | $ | 292,791 | |||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||||||||||||
| Other intangibles | — | — | — | — | — | ||||||||||||||||||||||||
| Tangible Common Equity | $ | 331,546 | $ | 320,911 | $ | 309,277 | $ | 298,900 | $ | 290,202 | |||||||||||||||||||
| Total Assets | $ | 3,555,275 | $ | 3,475,570 | $ | 3,373,859 | $ | 3,359,859 | $ | 3,243,963 | |||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||||||||||||
| Other intangibles | — | — | — | — | — | ||||||||||||||||||||||||
| Tangible Assets | $ | 3,552,686 | $ | 3,472,981 | $ | 3,371,270 | $ | 3,357,270 | $ | 3,241,374 | |||||||||||||||||||
| Tangible Common Equity to Tangible Assets | 9.33 | % | 9.24 | % | 9.17 | % | 8.90 | % | 8.95 | % | |||||||||||||||||||
| As of | |||||||||||||||||||||||||||||
| Computation of Fully Diluted Tangible Book Value per Common Share | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||||||||||||||||
| Total shareholders' equity | $ | 334,135 | $ | 323,500 | $ | 311,866 | $ | 301,489 | $ | 292,791 | |||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||
| Preferred stock | — | — | — | — | — | ||||||||||||||||||||||||
| Common shareholders' equity | $ | 334,135 | $ | 323,500 | $ | 311,866 | $ | 301,489 | $ | 292,791 | |||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||||||||||||
| Other intangibles | — | — | — | — | — | ||||||||||||||||||||||||
| Tangible common shareholders' equity | $ | 331,546 | $ | 320,911 | $ | 309,277 | $ | 298,900 | $ | 290,202 | |||||||||||||||||||
| Common shares issued and outstanding | 7,971,972 | 7,973,180 | 7,973,180 | 7,899,943 | 7,877,443 | ||||||||||||||||||||||||
| Fully Diluted Tangible Book Value per Common Share | $ | 41.59 | $ | 40.25 | $ | 38.79 | $ | 37.84 | $ | 36.84 | |||||||||||||||||||
10
BANKWELL FINANCIAL GROUP, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited)
(Dollars in thousands, except share data)
| Computation of Operating Return on Average Assets, Operating Return on Average Tangible Shareholders' Equity, Operating Efficiency Ratio, Operating Earnings per Common Share-Diluted, Operating Pre-tax Pre-Provision Net Revenue Return on Average Assets, Operating PPNR, and Operating Net Income | For the Quarter Ended | ||||
| September 30, 2026 | |||||
| PPNR | $ | 15,498 | |||
| Core conversion costs (pre-tax) | 3,041 | ||||
| Operating PPNR | $ | 18,539 | |||
| Average Assets | $ | 3,484,548 | |||
| Operating pre-tax, pre-provision net revenue on average assets | 2.11 | % | |||
| Net income | $ | 12,735 | |||
| Core conversion costs (post-tax) | 2,281 | ||||
| Operating net income | $ | 15,016 | |||
| Operating net income | $ | 15,016 | |||
| Dividends to participating securities | (25) | ||||
| Undistributed earnings allocated to participating securities | (176) | ||||
| Operating net income for earnings per share calculation | $ | 14,815 | |||
| Weighted average shares outstanding, diluted | 7,948,140 | ||||
| Operating earnings per common share - diluted | $ | 1.86 | |||
| Operating net income | $ | 15,016 | |||
| Average Assets | 3,484,548 | ||||
| Operating return on average assets | 1.71 | % | |||
| Operating net income | $ | 15,016 | |||
| Average shareholders' equity | 333,256 | ||||
| Average goodwill | 2,589 | ||||
| Average tangible shareholders' equity | $ | 330,667 | |||
| Operating return on average tangible shareholders' equity | 18.02 | % | |||
| Noninterest expense | 19,829 | ||||
| Core conversion costs (pre-tax) | 3,041 | ||||
| Operating noninterest expense | $ | 16,788 | |||
| Net interest income | 31,371 | ||||
| Noninterest income | 3,956 | ||||
| Total net interest income and noninterest income | $ | 35,327 | |||
| Operating efficiency ratio | 47.5 | % | |||
11
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, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||
Net income | $ | 12,735 | $ | 10,078 | $ | 36,382 | $ | 26,054 | |||||||||||||||
Dividends to participating securities(1) | (25) | (26) | (77) | (79) | |||||||||||||||||||
Undistributed earnings allocated to participating securities(1) | (176) | (143) | (509) | (386) | |||||||||||||||||||
Net income for earnings per share calculation | 12,534 | 9,909 | 35,796 | 25,589 | |||||||||||||||||||
Weighted average shares outstanding, basic | 7,858,046 | 7,774,887 | 7,813,326 | 7,741,244 | |||||||||||||||||||
Effect of dilutive equity-based awards(2) | 90,094 | 69,898 | 97,499 | 78,365 | |||||||||||||||||||
Weighted average shares outstanding, diluted | 7,948,140 | 7,844,785 | 7,910,825 | 7,819,609 | |||||||||||||||||||
Net earnings per common share: | |||||||||||||||||||||||
Basic earnings per common share | $ | 1.60 | $ | 1.27 | $ | 4.58 | $ | 3.31 | |||||||||||||||
Diluted earnings per common share | $ | 1.58 | $ | 1.26 | $ | 4.52 | $ | 3.27 | |||||||||||||||
(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.
12
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, 2026 | September 30, 2025 | ||||||||||||||||||||||||||||||||||
| Average Balance | Interest | Yield/ Rate (4) | Average Balance | Interest | Yield/ Rate (4) | ||||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||
| Cash and Fed funds sold | $ | 225,359 | $ | 1,937 | 3.41 | % | $ | 278,698 | $ | 2,853 | 4.06 | % | |||||||||||||||||||||||
Securities(1) | 208,404 | 2,164 | 4.15 | 142,677 | 1,463 | 4.10 | |||||||||||||||||||||||||||||
| Loans: | |||||||||||||||||||||||||||||||||||
| Commercial real estate | 1,980,923 | 32,339 | 6.39 | 1,856,645 | 29,662 | 6.25 | |||||||||||||||||||||||||||||
| Residential real estate | 28,098 | 389 | 5.53 | 34,518 | 510 | 5.91 | |||||||||||||||||||||||||||||
| Construction | 139,944 | 2,583 | 7.22 | 173,380 | 3,536 | 7.98 | |||||||||||||||||||||||||||||
| Commercial business | 740,848 | 14,313 | 7.56 | 572,187 | 11,634 | 7.96 | |||||||||||||||||||||||||||||
| Consumer | 64,997 | 1,136 | 6.94 | 63,627 | 986 | 6.15 | |||||||||||||||||||||||||||||
| Total loans | 2,954,810 | 50,760 | 6.72 | 2,700,357 | 46,328 | 6.71 | |||||||||||||||||||||||||||||
| Federal Home Loan Bank stock | 4,190 | 73 | 6.95 | 6,942 | 89 | 5.11 | |||||||||||||||||||||||||||||
| Total earning assets | 3,392,763 | $ | 54,934 | 6.34 | % | 3,128,674 | $ | 50,733 | 6.34 | % | |||||||||||||||||||||||||
| Other assets | 91,785 | 98,547 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 3,484,548 | $ | 3,227,221 | |||||||||||||||||||||||||||||||
| Liabilities and shareholders' equity: | |||||||||||||||||||||||||||||||||||
| Interest bearing liabilities: | |||||||||||||||||||||||||||||||||||
| NOW | $ | 109,933 | $ | 59 | 0.21 | % | $ | 99,087 | $ | 124 | 0.50 | % | |||||||||||||||||||||||
| Money market | 1,211,288 | 10,416 | 3.41 | 883,440 | 8,479 | 3.81 | |||||||||||||||||||||||||||||
| Savings | 97,350 | 636 | 2.59 | 94,290 | 700 | 2.95 | |||||||||||||||||||||||||||||
| Time | 1,094,376 | 10,662 | 3.87 | 1,253,878 | 13,282 | 4.20 | |||||||||||||||||||||||||||||
| Total interest bearing deposits | 2,512,947 | 21,773 | 3.44 | 2,330,695 | 22,585 | 3.84 | |||||||||||||||||||||||||||||
| Borrowed Money | 148,048 | 1,677 | 4.49 | 169,867 | 2,020 | 4.72 | |||||||||||||||||||||||||||||
| Total interest bearing liabilities | 2,660,995 | $ | 23,450 | 3.50 | % | 2,500,562 | $ | 24,605 | 3.90 | % | |||||||||||||||||||||||||
| Noninterest bearing deposits | 442,043 | 383,153 | |||||||||||||||||||||||||||||||||
| Other liabilities | 48,254 | 54,507 | |||||||||||||||||||||||||||||||||
| Total liabilities | 3,151,292 | 2,938,222 | |||||||||||||||||||||||||||||||||
| Shareholders' equity | 333,256 | 288,999 | |||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 3,484,548 | $ | 3,227,221 | |||||||||||||||||||||||||||||||
Net interest income(2) | $ | 31,484 | $ | 26,128 | |||||||||||||||||||||||||||||||
| Interest rate spread | 2.84 | % | 2.44 | % | |||||||||||||||||||||||||||||||
Net Interest Margin(3) | 3.71 | % | 3.34 | % | |||||||||||||||||||||||||||||||
(1)Average balances and yields for securities are based on amortized cost.
(2)The adjustment for securities and loans taxable equivalency amounted to $113 thousand and $141 thousand for the quarters ended September 30, 2026 and 2025, 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.
13
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, 2026 | September 30, 2025 | ||||||||||||||||||||||||||||||||||
| Average Balance | Interest | Yield/ Rate (4) | Average Balance | Interest | Yield/ Rate (4) | ||||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||
| Cash and Fed funds sold | $ | 233,993 | $ | 5,796 | 3.31 | % | $ | 307,737 | $ | 9,453 | 4.11 | % | |||||||||||||||||||||||
Securities(1) | 199,107 | 5,935 | 3.97 | 147,571 | 4,474 | 4.04 | |||||||||||||||||||||||||||||
| Loans: | |||||||||||||||||||||||||||||||||||
| Commercial real estate | 1,930,568 | 92,447 | 6.31 | 1,830,934 | 85,371 | 6.15 | |||||||||||||||||||||||||||||
| Residential real estate | 29,911 | 1,267 | 5.65 | 37,838 | 1,740 | 6.13 | |||||||||||||||||||||||||||||
| Construction | 152,223 | 8,298 | 7.19 | 182,857 | 10,856 | 7.83 | |||||||||||||||||||||||||||||
| Commercial business | 714,034 | 40,746 | 7.53 | 546,700 | 32,839 | 7.92 | |||||||||||||||||||||||||||||
| Consumer | 68,271 | 3,211 | 6.29 | 72,350 | 3,125 | 5.78 | |||||||||||||||||||||||||||||
| Total loans | 2,895,007 | 145,969 | 6.65 | 2,670,679 | 133,931 | 6.61 | |||||||||||||||||||||||||||||
| Federal Home Loan Bank stock | 4,801 | 227 | 6.31 | 5,522 | 286 | 6.90 | |||||||||||||||||||||||||||||
| Total earning assets | 3,332,908 | $ | 157,927 | 6.25 | % | 3,131,509 | $ | 148,144 | 6.24 | % | |||||||||||||||||||||||||
| Other assets | 90,234 | 92,451 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 3,423,142 | $ | 3,223,960 | |||||||||||||||||||||||||||||||
| Liabilities and shareholders' equity: | |||||||||||||||||||||||||||||||||||
| Interest bearing liabilities: | |||||||||||||||||||||||||||||||||||
| NOW | $ | 105,803 | $ | 167 | 0.21 | % | $ | 102,129 | $ | 311 | 0.41 | % | |||||||||||||||||||||||
| Money market | 1,138,205 | 29,163 | 3.43 | 891,823 | 25,579 | 3.83 | |||||||||||||||||||||||||||||
| Savings | 98,142 | 1,985 | 2.70 | 91,313 | 2,025 | 2.97 | |||||||||||||||||||||||||||||
| Time | 1,140,619 | 33,656 | 3.95 | 1,301,450 | 42,525 | 4.37 | |||||||||||||||||||||||||||||
| Total interest bearing deposits | 2,482,769 | 64,971 | 3.50 | 2,386,715 | 70,440 | 3.95 | |||||||||||||||||||||||||||||
| Borrowed Money | 145,073 | 4,863 | 4.48 | 147,519 | 5,288 | 4.79 | |||||||||||||||||||||||||||||
| Total interest bearing liabilities | 2,627,842 | $ | 69,834 | 3.55 | % | 2,534,234 | $ | 75,728 | 4.00 | % | |||||||||||||||||||||||||
| Noninterest bearing deposits | 428,798 | 356,705 | |||||||||||||||||||||||||||||||||
| Other liabilities | 46,060 | 51,354 | |||||||||||||||||||||||||||||||||
| Total liabilities | 3,102,700 | 2,942,293 | |||||||||||||||||||||||||||||||||
| Shareholders' equity | 320,442 | 281,667 | |||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 3,423,142 | $ | 3,223,960 | |||||||||||||||||||||||||||||||
Net interest income(2) | $ | 88,093 | $ | 72,416 | |||||||||||||||||||||||||||||||
| Interest rate spread | 2.70 | % | 2.24 | % | |||||||||||||||||||||||||||||||
Net Interest Margin(3) | 3.52 | % | 3.08 | % | |||||||||||||||||||||||||||||||
(1)Average balances and yields for securities are based on amortized cost.
(2)The adjustment for securities and loans taxable equivalency amounted to $334 thousand and $427 thousand for the nine months ended September 30, 2026 and 2025, 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.
14
October 29, 2026 Third Quarter 2026 BWFG Investor Presentation
Forward Looking Statement Important note regarding forward-looking statements: Statements made in this presentation which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management’s plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Such forward-looking statements may be identified by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “estimate,” “should,” “intend,” "target,” “outlook,” “project,” “guidance,” “forecast,” or similar expressions. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements. Factors which may cause actual results to differ materially from those contained in such forward-looking statements include those identified in the Company’s most recent Form 10-K and subsequent Form 10-Qs and other SEC filings, and such factors are incorporated herein by reference. Trademarks: All trademarks, service marks, and trade names referenced in this material are official trademarks and the property of their respective owners. Presentation: Within the charts and tables presented, certain segments, columns and rows may not sum to totals shown due to rounding. Non-GAAP Measures: This presentation includes certain non-GAAP financial measures. These non-GAAP measures are provided in addition to, and not as substitutes for, measures of our financial performance determined in accordance with GAAP. Our calculation of these non-GAAP measures may not be comparable to similarly titled measures of other companies due to potential differences between companies in the method of calculation. As a result, the use of these non-GAAP measures has limitations and should not be considered superior to, in isolation from, or as a substitute for, related GAAP measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found at the end of this presentation. 2 2
Third Quarter 2026 Highlights Key Highlights • Reported Net Income of $12.7 million includes $3.0 million (pre-tax) of Non-interest Expense associated with the Bank’s core conversion, including the termination of existing core provider contracts • NPAs as a % of Total Assets improved to 0.20%, down 26 bps LQ, primarily due to the sale of a COVID-era nonperforming CRE retail loan in Westchester, NY; $2.5 million recovery recognized • $4.0 million in Non-interest Income, including $2.8 million of gains on sales of SBA loans • Net Interest Margin of 3.71%, up 13 bps LQ, driven by an 8 basis point increase in earning asset yields and flat funding costs • Loans increased $23 million LQ on ~$222 million of originations, including $30 million of SBA origination • Tangible Book Value per share increased to $41.59 3 Key Performance Metrics Metric Reported Operating Net Income $12.7M $15.0M Diluted Earnings Per Share $1.58 $1.86 PPNR $15.5M $18.5M ROAA 1.45% 1.71% ROATCE 15.28% 18.02% Efficiency Ratio 56.1% 47.5%
Third Quarter 2026 Reported Results 4 Bankwell Financial Group, Inc. ($ in millions, except per share data) Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Net Interest Income $ 31.4 $ 29.5 $ 26.9 $ 26.9 $ 26.0 $ 23.9 $ 22.1 $ 20.2 $ 20.7 Provision (Credit) for Credit Losses (1.3) 1.2 (1.0) 0.6 0.4 (0.4) 0.5 4.5 6.3 Total Noninterest Income 4.0 3.3 3.3 3.4 2.5 2.0 1.5 1.0 1.2 Total Revenue 35.3 32.8 30.2 30.3 28.5 25.9 23.6 21.2 21.9 Total Noninterest Expenses 19.8 15.3 16.9 15.5 14.6 14.5 14.1 12.6 12.9 Income before Taxes 16.8 16.3 14.4 14.2 13.5 11.8 9.0 4.1 2.7 Net Income 12.7 12.4 11.3 9.1 10.1 9.1 6.9 3.0 1.9 Diluted Earnings Per Share 1.58 1.52 1.41 1.15 1.27 1.15 0.87 0.37 0.24 Total Assets 3,555.3 3,475.6 3,373.9 3,359.9 3,244.0 3,236.6 3,183.9 3,268.6 3,161.1 Gross Loans Receivable (ex. HFS) 2,978.4 2,955.5 2,862.3 2,835.1 2,714.0 2,665.0 2,641.0 2,702.0 2,619.3 Allowance for Credit Losses on Loans & Leases (30.7) (30.6) (29.6) (30.7) (30.0) (29.3) (29.5) (29.0) (27.8) All Other Assets 607.6 550.7 541.2 555.4 559.9 600.9 572.4 595.5 569.5 Total Liabilities 3,221.1 3,152.1 3,062.0 3,058.4 2,951.2 2,953.3 2,908.7 2,998.0 2,893.2 Total Deposits 2,967.7 3,000.5 2,885.2 2,829.5 2,757.4 2,759.3 2,750.4 2,787.6 2,688.2 Borrowings 194.9 99.8 129.8 179.7 144.6 144.6 109.5 159.5 159.4 Other Liabilities 58.6 51.7 47.0 49.2 49.1 49.4 48.7 50.9 45.6 Total Shareholders’ Equity 334.1 323.5 311.9 301.5 292.8 283.3 275.2 270.5 267.9 Net Interest Margin 3.71% 3.58% 3.28% 3.40% 3.34% 3.10% 2.81% 2.60% 2.72% PPNR ROAA1 1.76%2 2.07% 1.60% 1.80% 1.70% 1.43% 1.18% 1.05% 1.13% Effective Tax Rate 24% 24% 22% 36%3 25% 23% 23% 27% 29% Noninterest Expense to Average Assets 2.26%2 1.80% 2.03% 1.87% 1.80% 1.83% 1.76% 1.56% 1.62% 1 A non-GAAP metric. See the Appendix and BWFG’s 3Q26 Earnings Release, “Non-GAAP Financial Measures” section for additional detail. 2 Reported results include $3.0 million of non-interest expense attributed to core conversion cost, See the Appendix and BWFG’s 3Q26 Earnings Release, “Non-GAAP Financial Measures” section for additional detail. 3 Includes $1.5 million one-time adjustment to income tax provision, See BWFG’s 4Q25 Earnings Release, “Non-GAAP Financial Measures” section for additional detail.
Strong Loan Originations 5 • Net loans grew $134 million in 2025 despite record runoff of ~$0.7 billion, as the portfolio shifted toward higher-yielding credits • Continued origination momentum drove $143 million, or 5.0%, net loan growth through 3Q26 • Selective credit origination and retention supports both margin and credit quality Dollars in millions $421 $423 $871 $689 ($378) ($436) ($737) ($547) $43 ($13) $134 $143 (225) (175) (125) (75) (25) 25 75 125 175 225 (1,000) (800) (600) (400) (200) 0 200 400 600 800 1,000 2023 2024 2025 3Q26 Total Funding Total Runoff Net Loan Growth
6 69% $1,909 72% $2,028 74% $2,141 76% $2,269 76% $2,249 31% $849 28% $801 26% $744 24% $732 24% $719 $2,757 $2,829 $2,885 $3,001 $2,968 3Q25 4Q25 1Q26 2Q26 3Q26 Ending Balances Core Deposits Non Core Deposits A Larger Core Deposit Base Dollars in millions • Core deposits represent 76% of total deposits in 3Q26, up from 69% in 3Q25, reflecting a continued shift toward core funding • Core deposits decreased less than 1% sequentially ($20 million), while remaining $340 million, or 18%, above 3Q25 levels • NIB and NOW balances remained $72 million, or 15%, above 3Q25 levels, preserving much of the growth achieved over the period 1 Core deposits include DDA, NOW, Money Market, Savings, and non-brokered Time Deposits $250,000. 1 NIB & NOW Deposits $482 $494 $533 $605 $554
Higher Loan Yields Support Margin Expansion Deposit Cost Loan Yield 3.34% 3.40% 3.28% 3.58% 3.71% 3.30% 3.15% 3.10% 2.94% 2.92% 6.71% 6.63% 6.56% 6.66% 6.72% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 3Q25 4Q25 1Q26 2Q26 3Q26 NIM 7 Favorable Trends • New loan pricing remains favorable; 2026 origination yields are ~90 bps above yields on loans running off • Loan yields increased to 6.72% in 3Q26, up 6 bps from 2Q26 • Deposit costs reflect earlier repricing benefits, with maturing time deposits carrying rates at or below current market levels • September 2026 deposit ‘exit rate’ of 2.94%
Reduced Exposure to Short Term Rates 8 Loan Sensitivity 4Q24 3Q26 Deposit Sensitivity 4Q24 • ~$1.3 billion, or 44%, of loans now floating rate, providing balanced sensitivity across a range of rate scenarios • Time deposits declining as a share of funding, reducing reliance on rate-sensitive, repricing-driven balances • Noninterest Bearing (NIB) & NOW deposits expanding, providing a stable, low-cost (~4 bps) core that anchors funding across rate scenarios • Positioning reduces reliance on any single rate outcome; earnings are less exposed to the direction of future Fed moves 3Q26 Fixed 50% Adjustable 6% Float 44% Time 49% IB Non Mat 36% NIB & NOW 15% Time 36% IB Non Mat 45% NIB & NOW 19% Fixed 69% Adjustable 8% Float 23%
9 Loan Portfolio Diversification 45.8% 45.2% 43.4% 39.8% 38.3% 45.5% 44.9% 45.8% 51.0% 54.0% 425% 397% 375% 344% 321% 250% 300% 350% 400% 450% 500% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 4Q22 4Q23 4Q24 4Q25 3Q26 Positive Long Term Trends CRE Investor CRE O/O + C&I CRE Concentration Residential 0.9% C&I 24.4% CRE Owner Occupied 29.6% CRE Investor 38.3% Commercial Const. 4.4% Other 2.4% September 30, 2026 Loan Portfolio $2,983 million
$30.0 $30.7 $29.6 $30.6 $30.7 1.10% 1.08% 1.03% 1.03% 1.03% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% $10 $15 $20 $25 $30 $35 3Q25 4Q25 1Q26 2Q26 3Q26 Allowance for Credit Losses (ACL) Allowance for credit losses ACL / Loans Dollars in millions ($0.3) ($0.0) $0.2 ($0.0) ($1.4) 3Q25 4Q25 1Q26 2Q26 3Q26 Net Charge Offs (Recoveries) 3Q25 4Q25 1Q26 2Q26 3Q26 Risk Rating Balance % Balance % Balance % Balance % Balance % 1-5 “Pass” $2,609 96.0% $2,711 95.5% $2,724 95.0% $2,846 96.2% $2,851 95.6% 6 “Special Mention” $90 3.3% $80 2.8% $98 3.4% $67 2.3% $93 1 3.1% 7 “Substandard” $19 0.7% $48 1.7% $44 1.5% $46 1.6% $39 1.3% 8 “Doubtful” $0 0.0% $0 0.0% $0 0.0% $0 0.0% $0 0.0% Total Gross Loans $2,718 $2,840 $2,867 $2,960 $2,983 Non-performing Loans $17.0 $16.3 $19.0 $15.9 $7.1 % of Total Loans 0.62% 0.57% 0.66% 0.54% 0.24% Non-performing Assets $18.2 $16.3 $19.0 $15.9 $7.1 % of Total Assets 0.56% 0.49% 0.56% 0.46% 0.20% 1 100.0% of Risk Rated 6 loans are current on payments, 90.0% are guaranteed by ultra-high net worth sponsors. 10 Credit Trends
SBA Gains Lift Non-interest Income 11 $1.4 $2.2 $2.4 $2.4 $2.8 $2.5 $3.4 $3.3 $3.3 $4.0 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 3Q25 4Q25 1Q26 2Q26 3Q26 Non-interest Income Quarterly Trends SBA Gain on Sale Income Higher SBA gains helped drive a 21% sequential increase in total Non-interest Income to $4.0 million Dollars in millions Non-interest Income / Total Revenue 8.8% 11.1% 11.1% 10.0% 11.2%
$20.0 $20.1 $19.1 $19.2 $19.0 $9.2 $9.5 $9.6 $9.5 3Q25 4Q25 1Q26 2Q26 3Q26 Total Assets Per Employee Bankwell Peer Median Bankwell’s Efficiency Ratio 51.4% 50.8% 55.8% 47.5% 56.1% 47.5% Productivity Supports Operating Efficiency 12 • Assets per employee remain well above peer levels, reflecting meaningful scale relative to current staffing • 3Q26 reported Efficiency Ratio of 56.1% includes $3.0 million of Non- interest Expense associated with the Bank’s core conversion, including the termination of existing core provider contracts and ongoing conversion costs • On an operating basis, the efficiency ratio for the quarter and year-to-date is 47.5% and 50.0%, respectively Dollars in millions 1 1 As reported by S&P Global Market Intelligence. Peers include publicly-traded banks headquartered in the Mid-Atlantic and Northeast regions with total assets between $1 billion and $5 billion. 3Q26 Peer data not available. Operating:
Maintaining Our Strong Balance Sheet 13 Unencumbered Securities Unencumbered Cash Borrowing Capacity1 1 Bank lines, including FHLB & FRB. 2 Estimates, pending FRY9C & FDIC call report filings. • $1,896 million total insured deposits includes: $1,817 million FDIC-insured deposits $79 million deposits secured by FHLB LOCs (municipal deposits) • 12.2% Primary Liquidity on balance sheet • Stable insured deposit base • Additional 3Q26 ratios: 9.33% TCE ratio 321% CRE Concentration Ratio 34% Construction Concentration Ratio • Approximately 202,000 shares remaining available for repurchase under current plan Ample Liquidity Capital Generation Minimum + buffer Well Above Capital Minimums 2 Dollars in millions $1,426 $257 $175 $1,857 $1,072 Liquidity Uninsured Deposits 1.7X Liquidity Coverage 11.64% 12.67% 10.25% 10.80% 14.11% 9.52% CET1 / RWA TRBC / RWA Leverage Bank Consolidated
Questions? 14
Appendix 15
Fixed 50%Float 44% Adjustable 6% 5.49% Pre 2022 6.35% 2022 7.25% 2023 7.25% 2024 7.46% 2025 7.38% 2026 16 Dollars in millions 1 Y i e l d s a r e the ‘spot’ values as of September 30th, 2026. September 2026 Yields1 by Vintage Year Maturity Rate Reset Total Weighted Yield % Total Loans 2026 $332 $12 $344 6.25% 12% 2027 $332 $43 $375 5.33% 13% 2028 $244 $27 $272 6.38% 9% 2029+ $573 $111 $685 6.01% 23% Total $1,482 $193 $1,675 5.96% Loan Maturities & Contractual Repricing Excluding floating rate loans Loan Portfolio Overview September 2026 Balances By Rate Structure Total Loan Portfolio = $2,983 million • 6.71% weighted average yield1 • Floating rate loans comprise 44% of portfolio, compared with just 23% at the end of 2024
CT 23% NY 21% FL 16% TX 6% OH 5% PA 5% NJ 4% All Oth 19% Residential Care 41% Retail 17% MultiFamily 14% Office 7% Industrial Warehouse 6% Mixed Use 6% Medical Office 3% Other 3% Special Use 3% By Property Type Total CRE Portfolio = $2,028 million • 56% Non-Owner Occupied • 63% weighted average LTV2 • 77% of loan balances have recourse Loans Maturing or Repricing3 in 2026 – 2027 Property Type Investor Owner Occupied Total Residential Care -- $151 $151 Retail $103 $3 $106 Office $80 $5 $84 Multifamily $67 -- $67 All Other $163 $37 $201 Total $413 $196 $610 Excluding floating rate loans By Geography CRE Loan Portfolio1 Dollars in millions 17 1 Includes Owner Occupied CRE, does not include Construction. 2 LTVs based on original LTV values, at origination. 3 Loans subject to repricing generally have a floor of not less than the original rate.
Select CRE Sectors1 1 Includes Owner Occupied CRE. CRE Office : $135 million exposure 4.5% of total loan portfolio Geography • 40 loans with $3.4 million average balance • 69% located in Bankwell’s primary market • Out of primary market loans are generally either GSA-leased, credit tenants, or owner-occupied • Loans maturing or have a rate reset as follows: Year Balance Count 2026 $56 8 2027 $30 12 2028 $1 2 2029+ $48 18 Total $135 40 Dollars in millions CRE Multifamily : $334 million exposure 11.2% of total loan portfolio • 65 loans with $5.1 million average balance • 23% in New York City: • $16 million has either rent control or rent stabilized units (0.5% of total loan portfolio); $9 million guaranteed by sponsor with $1+ billion net worth and $0.5+ billion liquidity Geography NYC Multifamily Balance Loan Count % Brooklyn $38.2 5 50.3% Bronx $20.0 1 26.4% Manhattan $12.9 3 17.0% Queens $4.8 1 6.4% Total $75.9 10 100% 18 CT - Fairfield County $44.2 CT - All Other $3.3 NY - Westchester County $9.9 NY - NYC $8.3 NJ $27.5 TX $27.9 GA $12.3 FL $2.1 CT - Fairfield County $45.0 CT - New Haven County $108.8 CT - All Other $21.4 NY - NYC $75.9 AL $30.7 NY - Rockland County $22.1 PA $23.3 NJ $6.9
Health Care & Social Assistance 38% Insurance (Primarily Brokers) 21% Finance 13% Other 12% Real Estate and Rental/Leasing 10% Retail Trade 2% Admin & Support, Waste Mgmt, Remediation Svcs 2% Manufacturing 2% 1 Does not Include Owner Occupied CRE. C&I Loan Portfolio1 19 By Industry Type • 97% of C&I portfolio has recourse • 100% of Healthcare loans have recourse − Primarily consists of working capital lines secured by government accounts receivable • Insurance lending primarily to brokers of home and auto insurance Total C&I Portfolio = $727 million
Skilled Nursing Facilities 77% Assisted Living 7% Recovery 9% Other 7% Healthcare Portfolio Composition CRE Skilled Nursing Facility By State 1 Includes Physicians and Social/Family Services. 20 Combined Healthcare Dollars in millions $1,116 million combined Healthcare portfolio • Consists primarily of skilled nursing facilities located across the US • Healthcare lending team has more than 20 years of industry experience • High touch service model attracts desirable ultra-high net worth Healthcare borrowers • 100% of Skilled Nursing Lending has recourse • Focused on originating Healthcare loans in the most desirable states with: – Higher average occupancy – Low denial of payment rates for Medicaid – Strong senior demographic trends – Certificate of need programs 1 FL 37% OH 15% TX 10% NY 6% AL 5% PA 3% TN 3% VA 3% All Other 18%
$1,774 $1,785 $2,083 $2,271 $2,461 $1,027 $952 $705 $559 $507 $2,801 $2,737 $2,788 $2,830 $2,968 - $500 $1,000 $1,500 $2,000 $2,500 $3,000 2022 2023 2024 2025 3Q26 Non-Brokered Brokered Reduced Reliance onLower Brokered Deposit Dependence Dollars in millions Brokered deposit balances reduced $520 million from peak 21
Reconciliation of non-GAAP Metrics As of Computation of Fully Diluted Tangible Book Value per Common Share September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 Total shareholders' equity $ 334,135 $ 323,500 $ 311,866 $ 301,489 $ 292,791 Less: Preferred stock -- -- -- -- -- Common shareholders' equity $ 334,135 $ 323,500 $ 311,866 $ 301,489 $ 292,791 Less: Goodwill 2,589 2,589 2,589 2,589 2,589 Other intangibles -- -- -- -- -- Tangible common shareholders' equity $ 331,546 $ 320,911 $ 309,277 $ 298,900 $ 290,202 Common shares issued and outstanding 7,971,972 7,973,180 7,973,180 7,899,943 7,877,443 Fully Diluted Tangible Book Value per Common Share $41.59 $40.25 $38.79 $37.84 $36.84 Dollars in thousands 22 As of Computation of Tangible Common Equity to Tangible Assets September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 Total Equity $ 334,135 $ 323,500 $ 311,866 $ 301,489 $ 292,791 Less: Goodwill 2,589 2,589 2,589 2,589 2,589 Other intangibles -- -- -- -- -- Tangible Common Equity $ 331,546 $ 320,911 $ 309,277 $ 298,900 $ 290,202 Total Assets $ 3,555,275 $ 3,475,570 $ 3,373,859 $ 3,359,859 $ 3,243,963 Less: Goodwill 2,589 2,589 2,589 2,589 2,589 Other intangibles -- -- -- -- -- Tangible Assets $ 3,552,686 $ 3,472,981 $ 3,371,270 $ 3,357,270 $ 3,241,374 Tangible Common Equity to Tangible Assets 9.33% 9.24% 9.17% 8.90% 8.95% For the Quarter Ended Pre Provision Net Revenue (PPNR) September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 Net interest income $ 31,371 $ 29,503 $ 26,886 $ 26,946 $ 25,987 Total noninterest income 3,956 3,280 3,343 3,376 2,495 Total revenues 35,327 32,783 30,229 30,322 28,482 Less Total noninterest expense 19,829 15,255 16,889 15,470 14,631 PPNR $ 15,498 $ 17,528 $ 13,340 $ 14,852 $ 13,851
Reconciliation of non-GAAP Metrics Dollars in thousands 23 For the Quarter Ended September 30, 2026 PPNR $ 15,498 Core conversion costs (pre-tax) 3,041 Operating PPNR $ 18,539 Average Assets $ 3,484,548 Operating pre-tax, pre-provision net revenue on average assets 2.11% Net income $ 12,735 Core conversion costs (post-tax) 2,281 Operating net income $ 15,016 Operating net income $ 15,016 Dividends to participating securities (25) Undistributed earnings allocated to participating securities (176) Operating net income for earnings per share calculation $ 14,815 Weighted average shares outstanding, diluted 7,948,140 Operating earnings per common share – diluted $ 1.86 For the Quarter Ended September 30, 2026 Operating net income $ 15,016 Average Assets 3,484,548 Operating return on average assets 1.71% Operating net income $ 15,016 Average shareholders' equity 333,256 Average goodwill 2,589 Average tangible shareholders' equity $ 330,667 Operating return on average tangible shareholders' equity 18.02% Noninterest expense 19,829 Core conversion costs (pre-tax) 3,041 Operating noninterest expense $ 16,788 Net interest income 31,371 Noninterest income 3,956 Total net interest income and noninterest income $ 35,327 Operating efficiency ratio 47.5% Computation of Operating Return on Average Assets, Operating Return on Average Tangible Shareholders' Equity, Operating Efficiency Ratio, Operating Earnings per Common Share-Diluted, Operating Pre-tax Pre-Provision Net Revenue Return on Average Assets, Operating PPNR, and Operating Net Income
Bankwell Financial Group (Nasdaq: BWFG) 24 $3.6B Total Assets $3.0B Loans $0.33B Equity $3.0B Deposits 53.1% Year-to-Date Efficiency Ratio ~186 Employees 9.33% TCE Ratio 10.80% Consolidated CET1 Ratio 2 Current Footprint At A Glance (as of September 30, 2026) 2 Estimate, pending FRY9C filing. 1 1 Reported results include $3.0 million of non-interest expense attributed to core conversion cost. On an operating basis, YTD efficiency ratio is 50.0%. See BWFG’s 3Q26 Earnings Release, “Non-GAAP Financial Measures” section for additional detail.
