Document
BANKWELL FINANCIAL GROUP REPORTS OPERATING RESULTS FOR THE SECOND QUARTER, DECLARES THIRD QUARTER DIVIDEND
New Canaan, CT – July 28, 2025 – Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $9.1 million, or $1.15 per share for the second quarter of 2025, versus $6.9 million, or $0.87 per share, for the first quarter of 2025. The Company's Board of Directors declared a $0.20 per share cash dividend, payable August 22, 2025 to shareholders of record on August 11, 2025.
Discussion of Outlook; Bankwell Financial Group Chief Executive Officer, Christopher R. Gruseke:
"Our strong second quarter reflects an acceleration of positive trends which have been building over the past year. Notably, our net interest margin increased to 3.10% as a result of our improved funding costs. Loan originations accelerated in the quarter, resulting in $24 million net loan growth, which includes another robust quarter of SBA originations. Having already made the appropriate investments in risk, operations, and technology, the SBA business is on a path to achieve further scale and profitability. Year to date, it has contributed $1.5 million in non-interest income. The combined results of our efforts have increased the Company’s return on average assets to 1.14% this quarter and we expect continued improvement in profitability as the year progresses.
As we continue to improve the Company’s funding with higher quality deposits, we have now welcomed a total of five new deposit-focused private banking teams the year, and we anticipate their contributions will boost deposit growth later this year, with greater impact in 2026.
In light of this positive momentum, we are updating our 2025 guidance, to grow net interest income to $97 – $98 million. We reiterate our guidance of $7 - $8 million in noninterest income. We are increasing our noninterest expense guidance to $58 - $59 million, primarily a result of our investments in people. Despite the modestly higher run rate in operating expenses, we expect to see continued improvement to the Company’s efficiency ratio in the quarters ahead."
Key Points for Second Quarter and Bankwell’s Outlook
NIM Expansion on Improved Deposit Costs.
•Reported net interest margin was 3.10%, up 29 basis points from the first quarter of 2025, with reduced deposit costs on both time and non-maturity deposits contributing meaningfully to the linked-quarter expansion. Second quarter cost of deposits of 3.40% improved 20 basis points to linked quarter, with a June 2025 "exit" rate of 3.28%.
•During the first half of 2025, approximately $745 million of time deposits repriced approximately 80 basis points lower. Furthermore, rate cuts on approximately $1.0 billion of non-maturity interest-bearing deposits yielded a 23 basis point reduction in the same time period.
Advancing Key Strategic Priorities.
•SBA loan sale gains increased to $1.1 million for the quarter ended June 30, 2025, compared to $0.4 million in the first quarter of 2025. The SBA lending vertical delivered $11.8 million in originations during the quarter ended June 30, 2025, with continued growth expected for the remainder of 2025.
•The Company continues to invest in its deposit gathering capabilities, with the addition of five deposit teams in the New York Metro area; two teams added in April were previously disclosed, one team added after June 30, 2025.
•For the quarter ended June 30, 2025, the Company realized an efficiency ratio of 56.1%, down from 59.9% for the quarter ended March 31, 2025. Investments in strategic priorities continue to be balanced with revenue generation and improved efficiency.
Improving Credit.
•As of June 30, 2025, nonperforming assets as a percentage of total assets improved to 0.78%, compared to 0.83% as of March 31, 2025. Of the 0.78%, 0.17% is guaranteed by the SBA.
•ACL-loans as a % of nonperforming loans increased to 122.5%, compared to 111.8% as of March 31, 2025.
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Second Quarter 2025 Financial Highlights and Key Performance Indicators (KPIs):
| June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||||||||||||||||||||||||||||
Return on average assets(1)(6) | 1.14 | % | 0.86 | % | 0.37 | % | 0.24 | % | 0.14 | % | |||||||||||||||||||||||||
Pre-tax, pre-provision net revenue return on average assets(1)(6) | 1.43 | % | 1.18 | % | 1.13 | % | 1.22 | % | 1.10 | % | |||||||||||||||||||||||||
Return on average shareholders' equity(1)(6) | 12.98 | % | 10.16 | % | 4.35 | % | 2.83 | % | 1.65 | % | |||||||||||||||||||||||||
Net interest margin(1)(6) | 3.10 | % | 2.81 | % | 2.60 | % | 2.72 | % | 2.75 | % | |||||||||||||||||||||||||
Efficiency Ratio(1)(3) | 56.1 | % | 59.9 | % | 56.4 | % | 58.8 | % | 45.6 | % | |||||||||||||||||||||||||
Noninterest expense to average assets(1)(6) | 1.83 | % | 1.76 | % | 1.56 | % | 1.62 | % | 1.55 | % | |||||||||||||||||||||||||
Net loan charge-offs as a percentage of average loans(1)(6) | 0.00 | % | 0.00 | % | 0.11 | % | 0.56 | % | 0.01 | % | |||||||||||||||||||||||||
Dividend payout(1)(4) | 17.39 | % | 22.99 | % | 54.05 | % | 82.30 | % | 142.86 | % | |||||||||||||||||||||||||
Fully diluted tangible book value per common share(1)(2) | $ | 35.65 | $ | 34.56 | $ | 34.09 | $ | 33.76 | $ | 33.61 | |||||||||||||||||||||||||
Total capital to risk-weighted assets(1)(5) | 13.28 | % | 13.22 | % | 12.70 | % | 12.83 | % | 12.98 | % | |||||||||||||||||||||||||
Total common equity tier 1 capital to risk-weighted assets(1)(5) | 12.20 | % | 12.11 | % | 11.64 | % | 11.80 | % | 11.73 | % | |||||||||||||||||||||||||
Tier I Capital to Average Assets(1)(5) | 10.57 | % | 10.13 | % | 10.09 | % | 10.24 | % | 10.17 | % | |||||||||||||||||||||||||
Tangible common equity to tangible assets(1)(2) | 8.68 | % | 8.57 | % | 8.20 | % | 8.40 | % | 8.42 | % | |||||||||||||||||||||||||
| Earnings per common share - diluted | $ | 1.15 | $ | 0.87 | $ | 0.37 | $ | 0.24 | $ | 0.14 | |||||||||||||||||||||||||
| Common shares issued and outstanding | 7,873,387 | 7,888,013 | 7,859,873 | 7,858,573 | 7,866,499 | ||||||||||||||||||||||||||||||
(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.
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Pre-Tax, Pre-Provision Net Revenue(1) ("PPNR")
PPNR for the second quarter ended June 30, 2025 was $11.4 million, an increase of 20.9% from $9.4 million recognized for the first quarter ended March 31, 2025.
| For the Quarter Ended | |||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 23,936 | $ | 22,066 | $ | 20,199 | $ | 20,717 | $ | 21,219 | |||||||||||||||||||||||||||||||||||||
| Total noninterest income | 2,012 | 1,505 | 964 | 1,156 | 683 | ||||||||||||||||||||||||||||||||||||||||||
| Total revenues | 25,948 | 23,571 | 21,163 | 21,873 | 21,902 | ||||||||||||||||||||||||||||||||||||||||||
| Total noninterest expense | 14,546 | 14,141 | 12,644 | 12,865 | 12,245 | ||||||||||||||||||||||||||||||||||||||||||
| PPNR | $ | 11,402 | $ | 9,430 | $ | 8,519 | $ | 9,008 | $ | 9,657 | |||||||||||||||||||||||||||||||||||||
(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 June 30, 2025 were $25.9 million, versus $23.6 million from the previous quarter. The increase in revenues for the quarter ended June 30, 2025 was mainly attributable to reduced funding costs. Additional favorability for the quarter ended June 30, 2025 is attributed to growth in gains on sale of SBA loans.
•The net interest margin (fully taxable equivalent basis) for the quarters ended June 30, 2025 and March 31, 2025 was 3.10% and 2.81%, respectively. The increase in the net interest margin was mainly due to reduced funding costs.
•Total non-interest expense of $14.5 million increased 2.9% compared to the first quarter, which was mainly driven by increase in salaries and employee benefits.
Allowance for Credit Losses - Loans ("ACL-Loans")
The ACL-Loans was $29.3 million as of June 30, 2025 compared to $29.5 million as of March 31, 2025. The ACL-Loans as a percentage of total loans was 1.10% as of June 30, 2025 compared to 1.11% as of March 31, 2025.
The credit for credit losses - loans was $0.3 million for the quarter ended June 30, 2025. Total nonperforming loans decreased $2.5 million to $23.9 million as of June 30, 2025 when compared to the previous quarter. Nonperforming assets as a percentage of total assets decreased to 0.78% as of June 30, 2025 compared to the previous quarter's ratio of 0.83%.
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BANKWELL FINANCIAL GROUP, INC.
ASSET QUALITY (unaudited)
(Dollars in thousands)
| For the Quarter Ended | |||||||||||||||||||||||||||||||||||
| June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||||||||||||||||||||||||||||
| ACL-Loans: | |||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 29,485 | $ | 29,007 | $ | 27,752 | $ | 36,083 | $ | 27,991 | |||||||||||||||||||||||||
| Charge-offs: | |||||||||||||||||||||||||||||||||||
| Residential real estate | — | — | — | — | (9) | ||||||||||||||||||||||||||||||
| Commercial real estate | — | (67) | (1,100) | (8,184) | (522) | ||||||||||||||||||||||||||||||
| Commercial business | (15) | — | (703) | (7,010) | — | ||||||||||||||||||||||||||||||
| Consumer | (5) | (33) | (5) | (17) | (12) | ||||||||||||||||||||||||||||||
| Construction | — | — | (1,155) | (616) | — | ||||||||||||||||||||||||||||||
| Total charge-offs | (20) | (100) | (2,963) | (15,827) | (543) | ||||||||||||||||||||||||||||||
| Recoveries: | |||||||||||||||||||||||||||||||||||
| Residential real estate | — | — | — | — | 141 | ||||||||||||||||||||||||||||||
| Commercial real estate | — | — | — | 1,013 | 113 | ||||||||||||||||||||||||||||||
| Commercial business | 112 | 4 | 4 | (34) | — | ||||||||||||||||||||||||||||||
| Consumer | 10 | 36 | 5 | 1 | 13 | ||||||||||||||||||||||||||||||
| Construction | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Total recoveries | 122 | 40 | 9 | 980 | 267 | ||||||||||||||||||||||||||||||
| Net loan (charge-offs) recoveries | 102 | (60) | (2,954) | (14,847) | (276) | ||||||||||||||||||||||||||||||
| (Credit) provision for credit losses - loans | (331) | 538 | 4,209 | 6,516 | 8,368 | ||||||||||||||||||||||||||||||
| Balance at end of period | $ | 29,256 | $ | 29,485 | $ | 29,007 | $ | 27,752 | $ | 36,083 | |||||||||||||||||||||||||
| As of | |||||||||||||||||||||||||||||||||||
| June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||||||||||||||||||||||||||||
| Asset quality: | |||||||||||||||||||||||||||||||||||
| Nonaccrual loans | |||||||||||||||||||||||||||||||||||
| Residential real estate | $ | 617 | $ | 811 | $ | 791 | $ | 1,316 | $ | 1,339 | |||||||||||||||||||||||||
| Commercial real estate | 16,387 | 17,946 | 44,814 | 46,360 | 28,088 | ||||||||||||||||||||||||||||||
| Commercial business | 6,871 | 7,626 | 7,672 | 9,101 | 17,396 | ||||||||||||||||||||||||||||||
| Construction | — | — | — | 8,766 | 9,382 | ||||||||||||||||||||||||||||||
| Consumer | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Total nonaccrual loans | 23,875 | 26,383 | 53,277 | 65,543 | 56,205 | ||||||||||||||||||||||||||||||
| Other real estate owned | 1,284 | — | 8,299 | — | — | ||||||||||||||||||||||||||||||
| Total nonperforming assets | $ | 25,159 | $ | 26,383 | $ | 61,576 | $ | 65,543 | $ | 56,205 | |||||||||||||||||||||||||
| Nonperforming loans as a % of total loans | 0.89 | % | 1.00 | % | 1.97 | % | 2.42 | % | 2.12 | % | |||||||||||||||||||||||||
| Nonperforming assets as a % of total assets | 0.78 | % | 0.83 | % | 1.88 | % | 2.07 | % | 1.79 | % | |||||||||||||||||||||||||
| ACL-loans as a % of total loans | 1.10 | % | 1.11 | % | 1.07 | % | 1.07 | % | 1.36 | % | |||||||||||||||||||||||||
| ACL-loans as a % of nonperforming loans | 122.54 | % | 111.76 | % | 54.44 | % | 44.26 | % | 64.20 | % | |||||||||||||||||||||||||
| Total past due loans to total loans | 0.91 | % | 1.08 | % | 1.63 | % | 2.40 | % | 0.84 | % | |||||||||||||||||||||||||
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Financial Condition & Capital
Assets totaled $3.2 billion at June 30, 2025, a decrease of $31.9 million, or 1.0% compared to December 31, 2024. Gross loans totaled $2.7 billion at June 30, 2025, a decrease of $36.9 million, or 1.4% compared to December 31, 2024. Deposits totaled $2.8 billion at June 30, 2025, a decrease of $28.3 million, or 1.0% compared to December 31, 2024. Brokered deposits have decreased $81.2 million or 11.5%, when compared to December 31, 2024.
| Period End Loan Composition | June 30, 2025 | December 31, 2024 | June 30, 2024 | Current YTD % Change | Year over Year % Change | ||||||||||||||||||||||||
| Residential Real Estate | $ | 34,978 | $ | 42,766 | $ | 47,875 | (18.2) | % | (26.9) | % | |||||||||||||||||||
Commercial Real Estate(1) | 1,802,224 | 1,899,134 | 1,912,701 | (5.1) | (5.8) | ||||||||||||||||||||||||
| Construction | 203,758 | 173,555 | 150,259 | 17.4 | 35.6 | ||||||||||||||||||||||||
| Total Real Estate Loans | 2,040,960 | 2,115,455 | 2,110,835 | (3.5) | (3.3) | ||||||||||||||||||||||||
| Commercial Business | 559,221 | 515,125 | 503,444 | 8.6 | 11.1 | ||||||||||||||||||||||||
| Consumer | 68,801 | 75,308 | 42,906 | (8.6) | 60.4 | ||||||||||||||||||||||||
| Total Loans | $ | 2,668,982 | $ | 2,705,888 | $ | 2,657,185 | (1.4) | % | 0.4 | % | |||||||||||||||||||
| (1) Includes owner occupied commercial real estate of $0.7 billion at June 30, 2025, December 31, 2024, and June 30, 2024, respectively. | |||||||||||||||||||||||||||||
| Period End Deposit Composition | June 30, 2025 | December 31, 2024 | June 30, 2024 | Current YTD % Change | Year over Year % Change | ||||||||||||||||||||||||
| Noninterest bearing demand | $ | 397,195 | $ | 321,875 | $ | 328,475 | 23.4 | % | 20.9 | % | |||||||||||||||||||
| NOW | 118,019 | 105,090 | 122,112 | 12.3 | (3.4) | ||||||||||||||||||||||||
| Money Market | 875,457 | 899,413 | 825,599 | (2.7) | 6.0 | ||||||||||||||||||||||||
| Savings | 91,612 | 90,220 | 91,870 | 1.5 | (0.3) | ||||||||||||||||||||||||
| Time | 1,276,998 | 1,370,972 | 1,294,319 | (6.9) | (1.3) | ||||||||||||||||||||||||
| Total Deposits | $ | 2,759,281 | $ | 2,787,570 | $ | 2,662,375 | (1.0) | % | 3.6 | % | |||||||||||||||||||
Shareholders’ equity totaled $283.3 million as of June 30, 2025, an increase of $12.8 million compared to December 31, 2024, primarily a result of year to date net income of $16.0 million. The increase was partially offset by dividends paid of $3.1 million and share repurchases of $1.3 million.
As of June 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 13.28%, 12.20%, and 10.57%, respectively. The Company repurchased 14,626 shares at a weighted average price of $28.86 per share during the quarter ended June 30, 2025.
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We recommend reading this earnings release in conjunction with the Second Quarter 2025 Investor Presentation, located at https://investor.mybankwell.com/events-and-presentations/ and included as an exhibit to our July 28, 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 July 28, 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 New Canaan, CT. Bankwell offers its customers unmatched accessibility, expertise, and responsiveness through a range of commercial financing products including working capital lines of credit, SBA loans, acquisition loans, and commercial mortgages as well as treasury management and deposit services.
For more information about this press release, interested parties may contact Christopher R. Gruseke, Chief Executive Officer or Courtney E. Sacchetti, Executive Vice President and Chief Financial Officer of Bankwell Financial Group at (203) 652-0166 or at ir@mybankwell.com.
For more information, visit www.mybankwell.com.
This press release may contain certain forward-looking statements about the Company. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the banking industry or securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and its subsidiaries are engaged.
Non-GAAP Financial Measures
In addition to evaluating the Company's financial performance in accordance with U.S. generally accepted accounting principles ("GAAP"), management may evaluate certain non-GAAP financial measures, such as the efficiency ratio. A computation and reconciliation of certain non-GAAP financial measures used for these purposes is contained in the accompanying Reconciliation of GAAP to Non-GAAP Measures tables. We believe that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends and financial position. For example, the Company believes that the efficiency ratio is useful in the assessment of financial performance, including noninterest expense control. The Company believes that tangible common equity, tangible assets, tangible common equity to tangible assets, tangible common shareholders' equity, fully diluted tangible book value per common share, operating revenue, efficiency ratio, noninterest expense to average assets, average tangible common equity, annualized return on average tangible common equity, return on average assets, return on average shareholders' equity, pre-tax, pre-provision net revenue, net interest margin, net loan charge-offs as a percentage of average loans, pre-tax, pre-provision net revenue on average assets, and the dividend payout ratio are useful to evaluate the relative strength of the Company's performance and capital position. We utilize these measures for internal planning and forecasting purposes. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure.
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BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED BALANCE SHEETS (unaudited)
(Dollars in thousands)
| June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||||||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||||||||
| Cash and due from banks | $ | 313,998 | $ | 292,006 | $ | 293,552 | $ | 275,829 | $ | 234,277 | |||||||||||||||||||||||||
| Federal funds sold | 8,466 | 12,922 | 13,972 | 15,508 | 17,103 | ||||||||||||||||||||||||||||||
| Cash and cash equivalents | 322,464 | 304,928 | 307,524 | 291,337 | 251,380 | ||||||||||||||||||||||||||||||
| Investment securities | |||||||||||||||||||||||||||||||||||
| Marketable equity securities, at fair value | 2,188 | 2,164 | 2,118 | 2,148 | 2,079 | ||||||||||||||||||||||||||||||
| Available for sale investment securities, at fair value | 103,930 | 97,321 | 107,428 | 108,866 | 107,635 | ||||||||||||||||||||||||||||||
| Held to maturity investment securities, at amortized cost | 36,434 | 36,478 | 36,553 | 34,886 | 28,286 | ||||||||||||||||||||||||||||||
| Total investment securities | 142,552 | 135,963 | 146,099 | 145,900 | 138,000 | ||||||||||||||||||||||||||||||
| Loans receivable (net of ACL-Loans of $29,256, $29,485, $29,007, $27,752, and $36,083, at June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively) | 2,635,742 | 2,611,495 | 2,672,959 | 2,591,551 | 2,616,691 | ||||||||||||||||||||||||||||||
| Accrued interest receivable | 14,741 | 15,409 | 14,535 | 14,714 | 14,675 | ||||||||||||||||||||||||||||||
| Federal Home Loan Bank stock, at cost | 5,051 | 3,583 | 5,655 | 5,655 | 5,655 | ||||||||||||||||||||||||||||||
| Premises and equipment, net | 23,020 | 22,978 | 23,856 | 24,780 | 25,599 | ||||||||||||||||||||||||||||||
| Bank-owned life insurance | 53,488 | 53,136 | 52,791 | 52,443 | 52,097 | ||||||||||||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||||||||||||||||||
| Deferred income taxes, net | 9,684 | 9,551 | 9,742 | 9,300 | 11,345 | ||||||||||||||||||||||||||||||
| Other real estate owned | 1,284 | — | 8,299 | — | — | ||||||||||||||||||||||||||||||
| Other assets | 25,978 | 24,261 | 24,427 | 22,811 | 23,623 | ||||||||||||||||||||||||||||||
| Total assets | $ | 3,236,593 | $ | 3,183,893 | $ | 3,268,476 | $ | 3,161,080 | $ | 3,141,654 | |||||||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
| Deposits | |||||||||||||||||||||||||||||||||||
| Noninterest bearing deposits | $ | 397,195 | $ | 349,525 | $ | 321,875 | $ | 295,552 | $ | 328,475 | |||||||||||||||||||||||||
| Interest bearing deposits | 2,362,086 | 2,400,920 | 2,465,695 | 2,392,619 | 2,333,900 | ||||||||||||||||||||||||||||||
| Total deposits | 2,759,281 | 2,750,445 | 2,787,570 | 2,688,171 | 2,662,375 | ||||||||||||||||||||||||||||||
| Advances from the Federal Home Loan Bank | 75,000 | 40,000 | 90,000 | 90,000 | 90,000 | ||||||||||||||||||||||||||||||
| Subordinated debentures | 69,574 | 69,513 | 69,451 | 69,389 | 69,328 | ||||||||||||||||||||||||||||||
| Accrued expenses and other liabilities | 49,448 | 48,721 | 50,935 | 45,594 | 52,975 | ||||||||||||||||||||||||||||||
| Total liabilities | 2,953,303 | 2,908,679 | 2,997,956 | 2,893,154 | 2,874,678 | ||||||||||||||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||||||||||||||||
| Common stock, no par value | 118,698 | 118,439 | 119,108 | 118,429 | 118,037 | ||||||||||||||||||||||||||||||
| Retained earnings | 165,495 | 157,971 | 152,656 | 151,257 | 150,895 | ||||||||||||||||||||||||||||||
| Accumulated other comprehensive (loss) | (903) | (1,196) | (1,244) | (1,760) | (1,956) | ||||||||||||||||||||||||||||||
| Total shareholders’ equity | 283,290 | 275,214 | 270,520 | 267,926 | 266,976 | ||||||||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,236,593 | $ | 3,183,893 | $ | 3,268,476 | $ | 3,161,080 | $ | 3,141,654 | |||||||||||||||||||||||||
7
BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(Dollars in thousands, except share data)
| For the Quarter Ended | For the Six-Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||
| Interest and dividend income | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 44,128 | $ | 43,475 | $ | 42,851 | $ | 43,596 | $ | 43,060 | $ | 87,603 | $ | 86,385 | |||||||||||||||||||||||||||||||||
| Interest and dividends on securities | 1,478 | 1,445 | 1,482 | 1,390 | 1,190 | 2,923 | 2,320 | ||||||||||||||||||||||||||||||||||||||||
| Interest on cash and cash equivalents | 3,043 | 3,557 | 3,510 | 3,205 | 3,429 | 6,600 | 7,255 | ||||||||||||||||||||||||||||||||||||||||
| Total interest and dividend income | 48,649 | 48,477 | 47,843 | 48,191 | 47,679 | 97,126 | 95,960 | ||||||||||||||||||||||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense on deposits | 23,083 | 24,772 | 25,640 | 25,579 | 24,677 | 47,855 | 50,039 | ||||||||||||||||||||||||||||||||||||||||
| Interest expense on borrowings | 1,630 | 1,639 | 2,004 | 1,895 | 1,783 | 3,269 | 3,555 | ||||||||||||||||||||||||||||||||||||||||
| Total interest expense | 24,713 | 26,411 | 27,644 | 27,474 | 26,460 | 51,124 | 53,594 | ||||||||||||||||||||||||||||||||||||||||
| Net interest income | 23,936 | 22,066 | 20,199 | 20,717 | 21,219 | 46,002 | 42,366 | ||||||||||||||||||||||||||||||||||||||||
| (Credit) provision for credit losses | (411) | 463 | 4,458 | 6,296 | 8,183 | 52 | 11,866 | ||||||||||||||||||||||||||||||||||||||||
| Net interest income after (credit) provision for credit losses | 24,347 | 21,603 | 15,741 | 14,421 | 13,036 | 45,950 | 30,500 | ||||||||||||||||||||||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||||||||||||||||||||||
| Bank owned life insurance | 352 | 344 | 348 | 346 | 333 | 696 | 662 | ||||||||||||||||||||||||||||||||||||||||
| Service charges and fees | 674 | 602 | 589 | 575 | 495 | 1,276 | 799 | ||||||||||||||||||||||||||||||||||||||||
| Gains and fees from sales of loans | 1,080 | 442 | 24 | 133 | 45 | 1,522 | 366 | ||||||||||||||||||||||||||||||||||||||||
| Other | (94) | 117 | 3 | 102 | (190) | 23 | (229) | ||||||||||||||||||||||||||||||||||||||||
| Total noninterest income | 2,012 | 1,505 | 964 | 1,156 | 683 | 3,517 | 1,598 | ||||||||||||||||||||||||||||||||||||||||
| Noninterest expense | |||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 7,521 | 7,052 | 5,056 | 6,223 | 6,176 | 14,573 | 12,467 | ||||||||||||||||||||||||||||||||||||||||
| Occupancy and equipment | 2,505 | 2,575 | 2,600 | 2,334 | 2,238 | 5,080 | 4,561 | ||||||||||||||||||||||||||||||||||||||||
| Professional services | 1,632 | 1,529 | 1,286 | 1,142 | 989 | 3,161 | 2,054 | ||||||||||||||||||||||||||||||||||||||||
| Data processing | 712 | 885 | 905 | 851 | 755 | 1,597 | 1,495 | ||||||||||||||||||||||||||||||||||||||||
| Director fees | 333 | 348 | 342 | 292 | 306 | 681 | 1,206 | ||||||||||||||||||||||||||||||||||||||||
| FDIC insurance | 684 | 779 | 862 | 853 | 705 | 1,463 | 1,635 | ||||||||||||||||||||||||||||||||||||||||
| Marketing | 218 | 142 | 175 | 73 | 90 | 360 | 203 | ||||||||||||||||||||||||||||||||||||||||
| Other | 941 | 831 | 1,418 | 1,097 | 986 | 1,772 | 1,921 | ||||||||||||||||||||||||||||||||||||||||
| Total noninterest expense | 14,546 | 14,141 | 12,644 | 12,865 | 12,245 | 28,687 | 25,542 | ||||||||||||||||||||||||||||||||||||||||
| Income before income tax expense | 11,813 | 8,967 | 4,061 | 2,712 | 1,474 | 20,780 | 6,556 | ||||||||||||||||||||||||||||||||||||||||
| Income tax expense | 2,725 | 2,079 | 1,098 | 786 | 356 | 4,804 | 1,675 | ||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 9,088 | $ | 6,888 | $ | 2,963 | $ | 1,926 | $ | 1,118 | $ | 15,976 | $ | 4,881 | |||||||||||||||||||||||||||||||||
| Earnings Per Common Share: | |||||||||||||||||||||||||||||||||||||||||||||||
| Basic | $ | 1.16 | $ | 0.88 | $ | 0.37 | $ | 0.24 | $ | 0.14 | $ | 2.04 | $ | 0.62 | |||||||||||||||||||||||||||||||||
| Diluted | $ | 1.15 | $ | 0.87 | $ | 0.37 | $ | 0.24 | $ | 0.14 | $ | 2.03 | $ | 0.62 | |||||||||||||||||||||||||||||||||
| Weighted Average Common Shares Outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
| Basic | 7,777,469 | 7,670,224 | 7,713,970 | 7,715,040 | 7,747,675 | 7,724,143 | 7,705,598 | ||||||||||||||||||||||||||||||||||||||||
| Diluted | 7,819,829 | 7,740,521 | 7,727,412 | 7,720,895 | 7,723,888 | 7,795,820 | 7,721,880 | ||||||||||||||||||||||||||||||||||||||||
| Dividends per common share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.40 | $ | 0.40 | |||||||||||||||||||||||||||||||||
8
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 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | ||||||||||||||||||||||||||||||
| Total Equity | $ | 283,290 | $ | 275,214 | $ | 270,520 | $ | 267,926 | $ | 266,976 | |||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||||||||||||||||||
| Other intangibles | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Tangible Common Equity | $ | 280,701 | $ | 272,625 | $ | 267,931 | $ | 265,337 | $ | 264,387 | |||||||||||||||||||||||||
| Total Assets | $ | 3,236,593 | $ | 3,183,893 | $ | 3,268,476 | $ | 3,161,080 | $ | 3,141,654 | |||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||||||||||||||||||
| Other intangibles | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Tangible Assets | $ | 3,234,004 | $ | 3,181,304 | $ | 3,265,887 | $ | 3,158,491 | $ | 3,139,065 | |||||||||||||||||||||||||
| Tangible Common Equity to Tangible Assets | 8.68 | % | 8.57 | % | 8.20 | % | 8.40 | % | 8.42 | % | |||||||||||||||||||||||||
| As of | |||||||||||||||||||||||||||||||||||
| Computation of Fully Diluted Tangible Book Value per Common Share | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | ||||||||||||||||||||||||||||||
| Total shareholders' equity | $ | 283,290 | $ | 275,214 | $ | 270,520 | $ | 267,926 | $ | 266,976 | |||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||
| Preferred stock | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Common shareholders' equity | $ | 283,290 | $ | 275,214 | $ | 270,520 | $ | 267,926 | $ | 266,976 | |||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||||||||||||||||||
| Other intangibles | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Tangible common shareholders' equity | $ | 280,701 | $ | 272,625 | $ | 267,931 | $ | 265,337 | $ | 264,387 | |||||||||||||||||||||||||
| Common shares issued and outstanding | 7,873,387 | 7,888,013 | 7,859,873 | 7,858,573 | 7,866,499 | ||||||||||||||||||||||||||||||
| Fully Diluted Tangible Book Value per Common Share | $ | 35.65 | $ | 34.56 | $ | 34.09 | $ | 33.76 | $ | 33.61 | |||||||||||||||||||||||||
9
BANKWELL FINANCIAL GROUP, INC.
EARNINGS PER SHARE ("EPS") (unaudited)
(Dollars in thousands, except share data)
For the Quarter Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||
Net income | $ | 9,088 | $ | 1,118 | $ | 15,976 | $ | 4,881 | |||||||||||||||
Dividends to participating securities(1) | 26 | (40) | 53 | (79) | |||||||||||||||||||
Undistributed earnings allocated to participating securities(1) | (125) | 14 | (241) | (52) | |||||||||||||||||||
Net income for earnings per share calculation | 8,989 | 1,092 | 15,788 | 4,750 | |||||||||||||||||||
Weighted average shares outstanding, basic | 7,777,469 | 7,747,675 | 7,724,143 | 7,705,598 | |||||||||||||||||||
Effect of dilutive equity-based awards(2) | 42,359 | (24,787) | 71,677 | 16,282 | |||||||||||||||||||
Weighted average shares outstanding, diluted | 7,819,828 | 7,722,888 | 7,795,820 | 7,721,880 | |||||||||||||||||||
Net earnings per common share: | |||||||||||||||||||||||
Basic earnings per common share | $ | 1.16 | $ | 0.14 | $ | 2.04 | $ | 0.62 | |||||||||||||||
Diluted earnings per common share | $ | 1.15 | $ | 0.14 | $ | 2.03 | $ | 0.62 | |||||||||||||||
(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.
10
BANKWELL FINANCIAL GROUP, INC.
NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - QTD (unaudited)
(Dollars in thousands)
| For the Quarter Ended | |||||||||||||||||||||||||||||||||||
| June 30, 2025 | June 30, 2024 | ||||||||||||||||||||||||||||||||||
| Average Balance | Interest | Yield/ Rate (4) | Average Balance | Interest | Yield/ Rate (4) | ||||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||
| Cash and Fed funds sold | $ | 296,054 | $ | 3,043 | 4.12 | % | $ | 273,301 | $ | 3,429 | 5.05 | % | |||||||||||||||||||||||
Securities(1) | 149,475 | 1,535 | 4.11 | 137,360 | 1,139 | 3.32 | |||||||||||||||||||||||||||||
| Loans: | |||||||||||||||||||||||||||||||||||
| Commercial real estate | 1,788,354 | 27,427 | 6.07 | 1,901,189 | 27,654 | 5.75 | |||||||||||||||||||||||||||||
| Residential real estate | 37,549 | 597 | 6.36 | 49,046 | 772 | 6.30 | |||||||||||||||||||||||||||||
| Construction | 196,373 | 3,851 | 7.76 | 159,184 | 2,871 | 7.14 | |||||||||||||||||||||||||||||
| Commercial business | 558,237 | 11,195 | 7.93 | 523,382 | 11,028 | 8.34 | |||||||||||||||||||||||||||||
| Consumer | 72,137 | 1,058 | 5.88 | 42,335 | 735 | 6.98 | |||||||||||||||||||||||||||||
| Total loans | 2,652,650 | 44,128 | 6.58 | 2,675,136 | 43,060 | 6.37 | |||||||||||||||||||||||||||||
| Federal Home Loan Bank stock | 5,000 | 85 | 6.85 | 5,655 | 118 | 8.47 | |||||||||||||||||||||||||||||
| Total earning assets | 3,103,179 | $ | 48,791 | 6.22 | % | 3,091,452 | $ | 47,746 | 6.11 | % | |||||||||||||||||||||||||
| Other assets | 88,967 | 95,453 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 3,192,146 | $ | 3,186,905 | |||||||||||||||||||||||||||||||
| Liabilities and shareholders' equity: | |||||||||||||||||||||||||||||||||||
| Interest bearing liabilities: | |||||||||||||||||||||||||||||||||||
| NOW | $ | 107,818 | $ | 77 | 0.29 | % | $ | 107,310 | $ | 49 | 0.18 | % | |||||||||||||||||||||||
| Money market | 898,777 | 8,579 | 3.83 | 833,489 | 8,552 | 4.13 | |||||||||||||||||||||||||||||
| Savings | 91,415 | 667 | 2.93 | 90,987 | 688 | 3.04 | |||||||||||||||||||||||||||||
| Time | 1,273,372 | 13,760 | 4.33 | 1,291,595 | 15,388 | 4.76 | |||||||||||||||||||||||||||||
| Total interest bearing deposits | 2,371,382 | 23,083 | 3.90 | 2,323,381 | 24,677 | 4.27 | |||||||||||||||||||||||||||||
| Borrowed Money | 138,380 | 1,629 | 4.72 | 159,288 | 1,783 | 4.50 | |||||||||||||||||||||||||||||
| Total interest bearing liabilities | 2,509,762 | $ | 24,712 | 3.95 | % | 2,482,669 | $ | 26,460 | 4.29 | % | |||||||||||||||||||||||||
| Noninterest bearing deposits | 352,623 | 368,516 | |||||||||||||||||||||||||||||||||
| Other liabilities | 48,956 | 63,177 | |||||||||||||||||||||||||||||||||
| Total liabilities | 2,911,341 | 2,914,362 | |||||||||||||||||||||||||||||||||
| Shareholders' equity | 280,805 | 272,543 | |||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 3,192,146 | $ | 3,186,905 | |||||||||||||||||||||||||||||||
Net interest income(2) | $ | 24,079 | $ | 21,286 | |||||||||||||||||||||||||||||||
| Interest rate spread | 2.27 | % | 1.82 | % | |||||||||||||||||||||||||||||||
Net interest margin(3) | 3.10 | % | 2.75 | % | |||||||||||||||||||||||||||||||
(1)Average balances and yields for securities are based on amortized cost.
(2)The adjustment for securities and loans taxable equivalency amounted to $143 thousand and $67 thousand for the quarters ended June 30, 2025 and 2024, respectively.
(3)Annualized net interest income as a percentage of earning assets.
(4)Yields are calculated using the contractual day count convention for each respective product type.
11
BANKWELL FINANCIAL GROUP, INC.
NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - YTD (unaudited)
(Dollars in thousands)
| For the Year Ended | |||||||||||||||||||||||||||||||||||
| June 30, 2025 | June 30, 2024 | ||||||||||||||||||||||||||||||||||
| Average Balance | Interest | Yield/ Rate (4) | Average Balance | Interest | Yield/ Rate (4) | ||||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||
| Cash and Fed funds sold | $ | 322,498 | $ | 6,600 | 4.13 | % | $ | 282,981 | $ | 7,255 | 5.16 | % | |||||||||||||||||||||||
Securities(1) | 150,059 | 3,011 | 4.01 | 136,049 | 2,199 | 3.23 | |||||||||||||||||||||||||||||
| Loans: | |||||||||||||||||||||||||||||||||||
| Commercial real estate | 1,818,282 | 55,710 | 6.09 | 1,911,896 | 56,295 | 5.82 | |||||||||||||||||||||||||||||
| Residential real estate | 39,544 | 1,230 | 6.22 | 49,624 | 1,490 | 6.01 | |||||||||||||||||||||||||||||
| Construction | 187,674 | 7,320 | 7.76 | 160,080 | 5,844 | 7.22 | |||||||||||||||||||||||||||||
| Commercial business | 533,310 | 21,204 | 7.91 | 520,188 | 21,314 | 8.10 | |||||||||||||||||||||||||||||
| Consumer | 76,784 | 2,139 | 5.62 | 41,150 | 1,442 | 7.05 | |||||||||||||||||||||||||||||
| Total loans | 2,655,594 | 87,603 | 6.56 | 2,682,938 | 86,385 | 6.37 | |||||||||||||||||||||||||||||
| Federal Home Loan Bank stock | 4,799 | 196 | 8.21 | 5,678 | 239 | 8.49 | |||||||||||||||||||||||||||||
| Total earning assets | 3,132,950 | $ | 97,410 | 6.18 | % | 3,107,646 | $ | 96,078 | 6.12 | % | |||||||||||||||||||||||||
| Other assets | 89,353 | 93,179 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 3,222,303 | $ | 3,200,825 | |||||||||||||||||||||||||||||||
| Liabilities and shareholders' equity: | |||||||||||||||||||||||||||||||||||
| Interest bearing liabilities: | |||||||||||||||||||||||||||||||||||
| NOW | $ | 103,675 | $ | 187 | 0.36 | % | $ | 99,493 | $ | 88 | 0.18 | % | |||||||||||||||||||||||
| Money market | 896,084 | 17,099 | 3.85 | 858,670 | 17,698 | 4.14 | |||||||||||||||||||||||||||||
| Savings | 89,800 | 1,325 | 2.98 | 91,979 | 1,402 | 3.06 | |||||||||||||||||||||||||||||
| Time | 1,325,630 | 29,244 | 4.45 | 1,304,332 | 30,851 | 4.76 | |||||||||||||||||||||||||||||
| Total interest bearing deposits | 2,415,189 | 47,855 | 4.00 | 2,354,474 | 50,039 | 4.27 | |||||||||||||||||||||||||||||
| Borrowed Money | 136,161 | 3,269 | 4.84 | 159,257 | 3,555 | 4.49 | |||||||||||||||||||||||||||||
| Total interest bearing liabilities | 2,551,350 | $ | 51,124 | 4.04 | % | 2,513,731 | $ | 53,594 | 4.29 | % | |||||||||||||||||||||||||
| Noninterest bearing deposits | 343,261 | 352,768 | |||||||||||||||||||||||||||||||||
| Other liabilities | 49,752 | 62,775 | |||||||||||||||||||||||||||||||||
| Total liabilities | 2,944,363 | 2,929,274 | |||||||||||||||||||||||||||||||||
| Shareholders' equity | 277,940 | 271,551 | |||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 3,222,303 | $ | 3,200,825 | |||||||||||||||||||||||||||||||
Net interest income(2) | $ | 46,286 | $ | 42,484 | |||||||||||||||||||||||||||||||
| Interest rate spread | 2.14 | % | 1.83 | % | |||||||||||||||||||||||||||||||
Net interest margin(3) | 2.95 | % | 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 $285 thousand and $118 thousand for the year ended June 30, 2025 and 2024, respectively.
(3)Annualized net interest income as a percentage of earning assets.
(4)Yields are calculated using the contractual day count convention for each respective product type.
12