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, |
||||||||
|
(In thousands, except per share data) |
As Reported |
Operating |
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.”
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.
Third Quarter 2026 Financial Highlights and Key Performance Indicators (KPIs):
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
||||||||||
|
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. |
|
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, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|||||
|
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.
|
BANKWELL FINANCIAL GROUP, INC. |
||||||||||||||||||
|
|
For the Quarter Ended |
|||||||||||||||||
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|||||||||
|
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, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
||||||||||
|
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 |
% |
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, |
|
December 31, |
|
September 30, |
|
Current YTD |
|
Year over Year |
|||||
|
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, |
|
December 31, |
|
September 30, |
|
Current YTD |
|
Year over Year |
|||||
|
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.
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)”.
|
BANKWELL FINANCIAL GROUP, INC. |
|||||||||||||||||||
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
||||||||||
|
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 |
|
|
BANKWELL FINANCIAL GROUP, INC. |
|||||||||||||||||||||||||
|
|
For the Quarter Ended |
For the Nine Months Ended |
|||||||||||||||||||||||
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
September 30, |
|
September 30, |
||||||||||||
|
Interest and dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Interest and fees on loans |
$ |
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 |
|
BANKWELL FINANCIAL GROUP, INC. |
|||||||||||||||||||
|
|
As of |
||||||||||||||||||
|
Computation of Tangible Common Equity to Tangible Assets |
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
||||||||||
|
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, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|||||
|
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 |
|
BANKWELL FINANCIAL GROUP, INC. |
|||
|
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 |
||
|
|
September 30, |
||
|
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 |
% |
|
BANKWELL FINANCIAL GROUP, INC. |
|||||||||||||||
|
|
For the Quarter Ended |
|
For the Nine Months Ended |
||||||||||||
|
|
|
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. |
|||||||||||||||
|
BANKWELL FINANCIAL GROUP, INC. |
|||||||||||||||||
|
|
For the Quarter Ended |
||||||||||||||||
|
|
September 30, 2026 |
|
September 30, 2025 |
||||||||||||||
|
|
Average |
|
Interest |
|
Yield/ |
|
Average |
|
Interest |
|
Yield/ |
||||||
|
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. |
|
|
BANKWELL FINANCIAL GROUP, INC. |
|||||||||||||||||
|
|
For the Nine Months Ended |
||||||||||||||||
|
|
September 30, 2026 |
|
September 30, 2025 |
||||||||||||||
|
|
Average |
|
Interest |
|
Yield/ |
|
Average |
|
Interest |
|
Yield/ |
||||||
|
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. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20261029174274/en/
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