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

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

NEW CANAAN, Conn.–(BUSINESS WIRE)–
Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $10.1 million, or $1.27 per share for the third quarter of 2025, versus $9.1 million, or $1.15 per share, for the second quarter of 2025. The Company’s Board of Directors declared a $0.20 per share cash dividend, payable November 21, 2025 to shareholders of record on November 10, 2025.

Pre-tax, pre-provision net revenue (“PPNR”) of $13.9 million or 1.70% of average assets. PPNR increased 21.5% relative to the second quarter of 2025’s PPNR of $11.4 million.

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

“We are proud to announce our third quarter results which demonstrate continued growth and improvement across all aspects of our business. Our Return on Average Assets grew to 1.24% for the quarter while the Net Interest Margin expanded to 3.34%. Funded loan originations have grown to $518 million year-to-date, versus full year fundings of $328 million in 2024. Our SBA division continues to grow at a disciplined pace, with gains on sale increasing to $1.4 million for the third quarter. Notably, as we have expanded our capabilities across the Company, we have improved our efficiency ratio, reducing it to 51.4% this quarter.

Balance sheet trends have shown consistent improvement, supported by ongoing capital growth and a reduction in non-performing asset balances. NPAs as a percentage of assets now stand 0.56%, and our outlook remains positive for the quarters ahead. We look forward to closing out 2025 with continued momentum and we will provide guidance for 2026 performance with our year end earnings release.”

Key Points for ThirdQuarter and Bankwell’s Outlook

Continued Positive Credit Trends.

  • As of September 30, 2025, nonperforming assets as a percentage of total assets improved to 0.56%, compared to 0.78% as of June 30, 2025. Nonperforming assets have declined $6.9 million from the second quarter mainly due to the collection of $5.0 million on three SBA guarantees and the sale of one commercial real estate non-owner occupied loan for $1.6 million.

  • Special Mention loan balances have decreased $30 million in the third quarter of 2025.

  • ACL-loans as a % of nonperforming loans increased to 176.7%, compared to 122.5% as of June 30, 2025.

Net Interest Margin Expands on Favorable Loan Yields and Lower Deposit Costs.

  • Reported Net Interest Margin was 3.34% for the third quarter of 2025, up 24 basis points from the second quarter of 2025.

  • Deposit costs of 3.30% for the third quarter of 2025 have declined by 10 bps from the second quarter of 2025. The deposit cost improvement is driven by the repricing of time deposits and improved deposit mix, with current quarter results not reflective of the Company’s response to the September rate cut made by the Federal Reserve.

  • Loan yields were 6.71% for the third quarter of 2025, expanding by 13 basis points from the second quarter of 2025.

Advancing Key Strategic Priorities.

  • SBA loan sale gains increased to $1.4 million in the third quarter of 2025, compared to $1.1 million in the second quarter of 2025. Pricing remains strong, with third quarter sales premiums averaging 10%. The SBA Lending division delivered $21.8 million in originations in the third quarter of 2025.

  • Noninterest income as a percentage of revenue increased to 8.76% in the third quarter of 2025, compared to 7.76% in the second quarter of 2025.

  • For the third quarter of 2025, the Company realized an efficiency ratio of 51.4%, improved from 56.1% in the second quarter of 2025.

ThirdQuarter 2025 Financial Highlights and Key Performance Indicators (KPIs):

 

September 30,

2025

 

June 30,

2025

 

March 31,

2025

 

December 31,

2024

 

September 30,

2024

Return on average assets(1)(6)

 

1.24

%

 

 

1.14

%

 

 

0.86

%

 

 

0.37

%

 

 

0.24

%

Pre-tax, pre-provision net revenue return on average assets(1)(6)

 

1.70

%

 

 

1.43

%

 

 

1.18

%

 

 

1.05

%

 

 

1.13

%

Return on average shareholders’ equity(1)(6)

 

13.84

%

 

 

12.98

%

 

 

10.16

%

 

 

4.35

%

 

 

2.83

%

Net Interest Margin(1)(6)

 

3.34

%

 

 

3.10

%

 

 

2.81

%

 

 

2.60

%

 

 

2.72

%

Efficiency Ratio(1)(3)

 

51.4

%

 

 

56.1

%

 

 

59.9

%

 

 

56.4

%

 

 

58.8

%

Noninterest expense to average assets(1)(6)

 

1.80

%

 

 

1.83

%

 

 

1.76

%

 

 

1.56

%

 

 

1.62

%

Net loan (recoveries) charge-offs as a percentage of average loans(1)(6)

 

(0.01

)%

 

 

0.00

%

 

 

0.00

%

 

 

0.11

%

 

 

0.56

%

Dividend payout(1)(4)

 

15.75

%

 

 

17.39

%

 

 

22.99

%

 

 

54.05

%

 

 

82.30

%

Fully diluted tangible book value per common share(1)(2)

$

36.84

 

 

$

35.65

 

 

$

34.56

 

 

$

34.09

 

 

$

33.76

 

Total capital to risk-weighted assets(1)(5)

 

13.47

%

 

 

13.28

%

 

 

13.22

%

 

 

12.70

%

 

 

12.83

%

Total common equity tier 1 capital to risk-weighted assets(1)(5)

 

12.38

%

 

 

12.20

%

 

 

12.11

%

 

 

11.64

%

 

 

11.80

%

Tier I Capital to Average Assets(1)(5)

 

10.70

%

 

 

10.57

%

 

 

10.13

%

 

 

10.09

%

 

 

10.24

%

Tangible common equity to tangible assets(1)(2)

 

8.95

%

 

 

8.68

%

 

 

8.57

%

 

 

8.20

%

 

 

8.40

%

Earnings per common share – diluted

$

1.27

 

 

$

1.15

 

 

$

0.87

 

 

$

0.37

 

 

$

0.24

 

Common shares issued and outstanding

 

7,877,443

 

 

 

7,873,387

 

 

 

7,888,013

 

 

 

7,859,873

 

 

 

7,858,573

 

(1)

Non-GAAP Financial Measure, refer to the “Non-GAAP Financial Measures” section of this document for additional detail.

 

 

(2)

Refer to the “Reconciliation of GAAP to Non-GAAP Measures” section of this document for additional detail.

 

 

(3)

Efficiency ratio is defined as noninterest expense, less other real estate owned expenses and amortization of intangible assets, divided by our operating revenue, which is equal to net interest income plus noninterest income excluding gains and losses on sales of securities and gains and losses on other real estate owned. In our judgment, the adjustments made to operating revenue allow investors and analysts to better assess our operating expenses in relation to our core operating revenue by removing the volatility that is associated with certain one-time items and other discrete items that are unrelated to our core business.

 

 

(4)

The dividend payout ratio is calculated by dividing dividends per share by earnings per share.

 

 

(5)

Represents Bank ratios. Current period capital ratios are preliminary subject to finalization of the FDIC Call Report.

 

 

(6)

Return on average assets is calculated by dividing annualized net income by average assets. Pre-tax, pre-provision net revenue return on average is calculated by dividing PPNR (using the “Pre-Tax, Pre-Provision Net Revenue (PPNR)) section of this document by average assets. Return on average shareholders’ equity is calculated by dividing annualized net income by average shareholders’ equity. Net Interest Margin is calculated by dividing average annualized net interest income by average total earning assets. Noninterest expense to average assets is calculated by dividing annualized noninterest expense by average total assets. Net loan charge-offs as a percentage of average loans is calculated by dividing net loan (charge offs) recoveries by average total loans.

Pre-Tax, Pre-Provision Net Revenue(1) (“PPNR”)

PPNR for the third quarter ended September 30, 2025 was $13.9 million, an increase of 21.5% from $11.4 million recognized for the second quarter ended June 30, 2025.

 

For the Quarter Ended

(Dollars in thousands)

September 30,

2025

 

June 30,

2025

 

March 31,

2025

 

December 31,

2024

 

September 30,

2024

Net interest income

$

25,987

 

$

23,936

 

$

22,066

 

$

20,199

 

$

20,717

Total noninterest income

 

2,495

 

 

2,012

 

 

1,505

 

 

964

 

 

1,156

Total revenues

 

28,482

 

 

25,948

 

 

23,571

 

 

21,163

 

 

21,873

Total noninterest expense

 

14,631

 

 

14,546

 

 

14,141

 

 

12,644

 

 

12,865

PPNR

$

13,851

 

$

11,402

 

$

9,430

 

$

8,519

 

$

9,008

(1)

Non-GAAP Financial Measure, refer to the “Non-GAAP Financial Measures” section of this document for additional detail.

  • Revenues (net interest income plus noninterest income) for the quarter ended September 30, 2025 were $28.5 million, versus $25.9 million from the previous quarter. The increase in revenues for the quarter ended September 30, 2025 was mainly attributable to increased earning asset yields and increased loan balances. Additional favorability for the quarter ended September 30, 2025 is attributed to growth in gains on sale of SBA loans, which yielded an approximate 10% premium, on average.

  • The Net Interest Margin (fully taxable equivalent basis) for the quarters ended September 30, 2025 and June 30, 2025 was 3.34% and 3.10%, respectively. The increase in the Net Interest Margin is mainly due to increased earning asset yields. Additionally, Net Interest Margin for the third quarter 2025 benefited by 3 basis points due to non-recurring interest income recognized from the resolution of certain non-performing SBA loans.

Allowance for Credit Losses – Loans (“ACL-Loans”)

The ACL-Loans was $30.0 million as of September 30, 2025 compared to $29.3 million as of June 30 2025. The ACL-Loans as a percentage of total loans was 1.10% as of September 30, 2025 compared to 1.10% as of June 30, 2025.

The provision for credit losses – loans was $0.4 million for the quarter ended September 30, 2025. Total nonperforming loans decreased $6.9 million to $17.0 million as of September 30, 2025 when compared to the previous quarter. Nonperforming assets as a percentage of total assets decreased to 0.56% at September 30, 2025 compared to the previous quarter’s ratio of 0.78%.

BANKWELL FINANCIAL GROUP, INC.

ASSET QUALITY (unaudited)

(Dollars in thousands)

 

 

For the Quarter Ended

 

September 30,

2025

 

June 30,

2025

 

March 31,

2025

 

December 31,

2024

 

September 30,

2024

ACL-Loans:

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$

29,256

 

 

$

29,485

 

 

$

29,007

 

 

$

27,752

 

 

$

36,083

 

Charge-offs:

 

 

 

 

 

 

 

 

 

Residential real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

 

 

 

 

 

(67

)

 

 

(1,100

)

 

 

(8,184

)

Commercial business

 

(14

)

 

 

(15

)

 

 

 

 

 

(703

)

 

 

(7,010

)

Consumer

 

(46

)

 

 

(5

)

 

 

(33

)

 

 

(5

)

 

 

(17

)

Construction

 

 

 

 

 

 

 

 

 

 

(1,155

)

 

 

(616

)

Total charge-offs

 

(60

)

 

 

(20

)

 

 

(100

)

 

 

(2,963

)

 

 

(15,827

)

Recoveries:

 

 

 

 

 

 

 

 

 

Residential real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

270

 

 

 

 

 

 

 

 

 

 

 

 

1,013

 

Commercial business

 

86

 

 

 

112

 

 

 

4

 

 

 

4

 

 

 

(34

)

Consumer

 

12

 

 

 

10

 

 

 

36

 

 

 

5

 

 

 

1

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total recoveries

 

368

 

 

 

122

 

 

 

40

 

 

 

9

 

 

 

980

 

Net loan recoveries (charge-offs)

 

308

 

 

 

102

 

 

 

(60

)

 

 

(2,954

)

 

 

(14,847

)

Provision (credit) for credit losses – loans

 

420

 

 

 

(331

)

 

 

538

 

 

 

4,209

 

 

 

6,516

 

Balance at end of period

$

29,984

 

 

$

29,256

 

 

$

29,485

 

 

$

29,007

 

 

$

27,752

 

 

As of

 

September 30,

2025

 

June 30,

2025

 

March 31,

2025

 

December 31,

2024

 

September 30,

2024

Asset quality:

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

 

 

 

 

 

 

 

 

Residential real estate

$

570

 

 

$

617

 

 

$

811

 

 

$

791

 

 

$

1,316

 

Commercial real estate

 

14,667

 

 

 

16,387

 

 

 

17,946

 

 

 

44,814

 

 

 

46,360

 

Commercial business

 

1,729

 

 

 

6,871

 

 

 

7,626

 

 

 

7,672

 

 

 

9,101

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

8,766

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total nonaccrual loans

 

16,966

 

 

 

23,875

 

 

 

26,383

 

 

 

53,277

 

 

 

65,543

 

Other real estate owned

 

1,284

 

 

 

1,284

 

 

 

 

 

 

8,299

 

 

 

 

Total nonperforming assets

$

18,250

 

 

$

25,159

 

 

$

26,383

 

 

$

61,576

 

 

$

65,543

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans as a % of total loans

 

0.62

%

 

 

0.89

%

 

 

1.00

%

 

 

1.97

%

 

 

2.50

%

Nonperforming assets as a % of total assets

 

0.56

%

 

 

0.78

%

 

 

0.83

%

 

 

1.88

%

 

 

2.07

%

ACL-loans as a % of total loans

 

1.10

%

 

 

1.10

%

 

 

1.11

%

 

 

1.07

%

 

 

1.06

%

ACL-loans as a % of nonperforming loans

 

176.73

%

 

 

122.54

%

 

 

111.76

%

 

 

54.44

%

 

 

42.34

%

Total past due loans to total loans

 

0.76

%

 

 

0.91

%

 

 

1.08

%

 

 

1.63

%

 

 

2.48

%

Financial Condition & Capital

Assets totaled $3.2 billion at September 30, 2025, a decrease of $24.5 million, or 0.7% compared to December 31, 2024. Gross loans totaled $2.7 billion at September 30, 2025, an increase of $12.3 million, or 0.5% compared to December 31, 2024. Deposits totaled $2.8 billion at September 30, 2025, a decrease of $30.2 million, or 1.1% compared to December 31, 2024. Brokered deposits have decreased $96.3 million or 13.7%, when compared to December 31, 2024.

Period End Loan Composition

September 30,

2025

 

December 31,

2024

 

September 30,

2024

 

 

Current YTD

% Change

 

Year over Year

% Change

Residential Real Estate

$

33,625

 

$

42,766

 

$

45,553

 

(21.4

)%

 

(26.2

)%

Commercial Real Estate(1)

 

1,897,896

 

 

1,899,134

 

 

1,887,942

 

(0.1

)

 

0.5

 

Construction

 

170,888

 

 

173,555

 

 

160,292

 

(1.5

)

 

6.6

 

Total Real Estate Loans

 

2,102,409

 

 

2,115,455

 

 

2,093,787

 

(0.6

)

 

0.4

 

Commercial Business

 

552,682

 

 

515,125

 

 

490,292

 

7.3

 

 

12.7

 

Consumer

 

63,098

 

 

75,308

 

 

39,126

 

(16.2

)

 

61.3

 

Total Loans

$

2,718,189

 

$

2,705,888

 

$

2,623,205

 

0.5

%

 

3.6

%

(1) Includes owner occupied commercial real estate of $0.8 billion at September 30, 2025, $0.7 billion at December 31, 2024, and $0.7 billion at September 30, 2024, respectively.

Period End Deposit Composition

September 30,

2025

 

December 31,

2024

 

September 30,

2024

 

 

Current YTD

% Change

 

Year over Year

% Change

Noninterest bearing demand

$

397,408

 

$

321,875

 

$

295,552

 

23.5

%

 

34.5

%

NOW

 

84,736

 

 

105,090

 

 

76,413

 

(19.4

)

 

10.9

 

Money Market

 

897,387

 

 

899,413

 

 

840,234

 

(0.2

)

 

6.8

 

Savings

 

95,242

 

 

90,220

 

 

87,212

 

5.6

 

 

9.2

 

Time

 

1,282,642

 

 

1,370,972

 

 

1,388,760

 

(6.4

)

 

(7.6

)

Total Deposits

$

2,757,415

 

$

2,787,570

 

$

2,688,171

 

(1.1

)%

 

2.6

%

Shareholders’ equity totaled $292.8 million as of September 30, 2025, an increase of $22.3 million compared to December 31, 2024, primarily a result of year to date net income of $26.1 million. The increase was partially offset by dividends paid of $4.7 million.

As of September 30, 2025, the Bank’s regulatory capital ratios were all above ‘well capitalized’ values, with total risk-based capital, common-equity tier 1 capital and leverage ratios at 13.47%, 12.38%, and 10.70%, respectively.

We recommend reading this earnings release in conjunction with the Third Quarter 2025 Investor Presentation, located at https://investor.mybankwell.com/events-and-presentations/ and included as an exhibit to our October 23, 2025 Current Report on Form 8-K.

Conference Call

Bankwell will host a conference call to discuss the Company’s financial results and business outlook on October 23, 2025, at 11:00 a.m. E.T. The call will be accessible by telephone and webcast using https://investor.mybankwell.com/events-and-presentations/. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event.

About Bankwell Financial Group

Bankwell Financial Group, Inc. is the holding company for Bankwell Bank (“Bankwell”), a full-service commercial bank headquartered in 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 [email protected].

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.

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS (unaudited)

(Dollars in thousands)

 

 

September 30,

2025

 

June 30,

2025

 

March 31,

2025

 

December 31,

2024

 

September 30,

2024

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

289,628

 

 

$

313,998

 

 

$

292,006

 

 

$

293,552

 

 

$

275,829

 

Federal funds sold

 

5,732

 

 

 

8,466

 

 

 

12,922

 

 

 

13,972

 

 

 

15,508

 

Cash and cash equivalents

 

295,360

 

 

 

322,464

 

 

 

304,928

 

 

 

307,524

 

 

 

291,337

 

 

 

 

 

 

 

 

 

 

 

Investment securities

 

 

 

 

 

 

 

 

 

Marketable equity securities, at fair value

 

2,223

 

 

 

2,188

 

 

 

2,164

 

 

 

2,118

 

 

 

2,148

 

Available for sale investment securities, at fair value

 

96,473

 

 

 

103,930

 

 

 

97,321

 

 

 

107,428

 

 

 

108,866

 

Held to maturity investment securities, at amortized cost

 

29,538

 

 

 

36,434

 

 

 

36,478

 

 

 

36,553

 

 

 

34,886

 

Total investment securities

 

128,234

 

 

 

142,552

 

 

 

135,963

 

 

 

146,099

 

 

 

145,900

 

Loans receivable (net of ACL-Loans of $29,984, $29,256, $29,485, $29,007, and $27,752, at September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024, and September 30, 2024, respectively)

 

2,684,016

 

 

 

2,635,742

 

 

 

2,611,495

 

 

 

2,672,959

 

 

 

2,591,551

 

Accrued interest receivable

 

15,633

 

 

 

14,741

 

 

 

15,409

 

 

 

14,535

 

 

 

14,714

 

Federal Home Loan Bank stock, at cost

 

4,951

 

 

 

5,051

 

 

 

3,583

 

 

 

5,655

 

 

 

5,655

 

Premises and equipment, net

 

22,387

 

 

 

23,020

 

 

 

22,978

 

 

 

23,856

 

 

 

24,780

 

Bank-owned life insurance

 

53,846

 

 

 

53,488

 

 

 

53,136

 

 

 

52,791

 

 

 

52,443

 

Goodwill

 

2,589

 

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

Deferred income taxes, net

 

9,027

 

 

 

9,684

 

 

 

9,551

 

 

 

9,742

 

 

 

9,300

 

Other real estate owned

 

1,284

 

 

 

1,284

 

 

 

 

 

 

8,299

 

 

 

 

Other assets

 

26,636

 

 

 

25,978

 

 

 

24,261

 

 

 

24,427

 

 

 

22,811

 

Total assets

$

3,243,963

 

 

$

3,236,593

 

 

$

3,183,893

 

 

$

3,268,476

 

 

$

3,161,080

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

Noninterest bearing deposits

$

397,408

 

 

$

397,195

 

 

$

349,525

 

 

$

321,875

 

 

$

295,552

 

Interest bearing deposits

 

2,360,007

 

 

 

2,362,086

 

 

 

2,400,920

 

 

 

2,465,695

 

 

 

2,392,619

 

Total deposits

 

2,757,415

 

 

 

2,759,281

 

 

 

2,750,445

 

 

 

2,787,570

 

 

 

2,688,171

 

 

 

 

 

 

 

 

 

 

 

Advances from the Federal Home Loan Bank

 

75,000

 

 

 

75,000

 

 

 

40,000

 

 

 

90,000

 

 

 

90,000

 

Subordinated debentures

 

69,636

 

 

 

69,574

 

 

 

69,513

 

 

 

69,451

 

 

 

69,389

 

Accrued expenses and other liabilities

 

49,121

 

 

 

49,448

 

 

 

48,721

 

 

 

50,935

 

 

 

45,594

 

Total liabilities

 

2,951,172

 

 

 

2,953,303

 

 

 

2,908,679

 

 

 

2,997,956

 

 

 

2,893,154

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

 

 

Common stock, no par value

 

119,353

 

 

 

118,698

 

 

 

118,439

 

 

 

119,108

 

 

 

118,429

 

Retained earnings

 

174,008

 

 

 

165,495

 

 

 

157,971

 

 

 

152,656

 

 

 

151,257

 

Accumulated other comprehensive (loss)

 

(570

)

 

 

(903

)

 

 

(1,196

)

 

 

(1,244

)

 

 

(1,760

)

Total shareholders’ equity

 

292,791

 

 

 

283,290

 

 

 

275,214

 

 

 

270,520

 

 

 

267,926

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

$

3,243,963

 

 

$

3,236,593

 

 

$

3,183,893

 

 

$

3,268,476

 

 

$

3,161,080

 

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

(Dollars in thousands, except share data)

 

 

For the Quarter Ended

For the Nine Months Ended

 

September 30,

2025

 

June 30,

2025

 

March 31,

2025

 

December 31,

2024

 

September 30,

2024

 

September 30,

2025

 

September 30,

2024

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

$

46,328

 

 

$

44,128

 

 

$

43,475

 

$

42,851

 

$

43,596

 

$

133,931

 

$

129,981

 

Interest and dividends on securities

 

1,410

 

 

 

1,478

 

 

 

1,445

 

 

1,482

 

 

1,390

 

 

4,333

 

 

3,710

 

Interest on cash and cash equivalents

 

2,853

 

 

 

3,043

 

 

 

3,557

 

 

3,510

 

 

3,205

 

 

9,453

 

 

10,460

 

Total interest and dividend income

 

50,591

 

 

 

48,649

 

 

 

48,477

 

 

47,843

 

 

48,191

 

 

147,717

 

 

144,151

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense on deposits

 

22,585

 

 

 

23,083

 

 

 

24,772

 

 

25,640

 

 

25,579

 

 

70,440

 

 

75,618

 

Interest expense on borrowings

 

2,019

 

 

 

1,630

 

 

 

1,639

 

 

2,004

 

 

1,895

 

 

5,288

 

 

5,450

 

Total interest expense

 

24,604

 

 

 

24,713

 

 

 

26,411

 

 

27,644

 

 

27,474

 

 

75,728

 

 

81,068

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

25,987

 

 

 

23,936

 

 

 

22,066

 

 

20,199

 

 

20,717

 

 

71,989

 

 

63,083

 

Provision (credit) for credit losses

 

372

 

 

 

(411

)

 

 

463

 

 

4,458

 

 

6,296

 

 

424

 

 

18,162

 

Net interest income after provision (credit) for credit losses

 

25,615

 

 

 

24,347

 

 

 

21,603

 

 

15,741

 

 

14,421

 

 

71,565

 

 

44,921

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank owned life insurance

 

359

 

 

 

352

 

 

 

344

 

 

348

 

 

346

 

 

1,055

 

 

1,008

 

Service charges and fees

 

779

 

 

 

674

 

 

 

602

 

 

589

 

 

575

 

 

2,055

 

 

1,374

 

Gains and fees from sales of loans

 

1,372

 

 

 

1,080

 

 

 

442

 

 

24

 

 

133

 

 

2,894

 

 

499

 

Other

 

(15

)

 

 

(94

)

 

 

117

 

 

3

 

 

102

 

 

8

 

 

(127

)

Total noninterest income

 

2,495

 

 

 

2,012

 

 

 

1,505

 

 

964

 

 

1,156

 

 

6,012

 

 

2,754

 

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

7,995

 

 

 

7,521

 

 

 

7,052

 

 

5,056

 

 

6,223

 

 

22,568

 

 

18,690

 

Occupancy and equipment

 

2,469

 

 

 

2,505

 

 

 

2,575

 

 

2,600

 

 

2,334

 

 

7,549

 

 

6,894

 

Professional services

 

1,412

 

 

 

1,632

 

 

 

1,529

 

 

1,286

 

 

1,142

 

 

4,573

 

 

3,196

 

Data processing

 

633

 

 

 

712

 

 

 

885

 

 

905

 

 

851

 

 

2,230

 

 

2,346

 

Director fees

 

333

 

 

 

333

 

 

 

348

 

 

342

 

 

292

 

 

1,014

 

 

1,498

 

FDIC insurance

 

610

 

 

 

684

 

 

 

779

 

 

862

 

 

853

 

 

2,073

 

 

2,488

 

Marketing

 

140

 

 

 

218

 

 

 

142

 

 

175

 

 

73

 

 

500

 

 

277

 

Other

 

1,039

 

 

 

941

 

 

 

831

 

 

1,418

 

 

1,097

 

 

2,811

 

 

3,018

 

Total noninterest expense

 

14,631

 

 

 

14,546

 

 

 

14,141

 

 

12,644

 

 

12,865

 

 

43,318

 

 

38,407

 

Income before income tax expense

 

13,479

 

 

 

11,813

 

 

 

8,967

 

 

4,061

 

 

2,712

 

 

34,259

 

 

9,268

 

Income tax expense

 

3,401

 

 

 

2,725

 

 

 

2,079

 

 

1,098

 

 

786

 

 

8,205

 

 

2,461

 

Net income

$

10,078

 

 

$

9,088

 

 

$

6,888

 

$

2,963

 

$

1,926

 

$

26,054

 

$

6,807

 

Earnings Per Common Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

1.28

 

 

$

1.16

 

 

$

0.88

 

$

0.37

 

$

0.24

 

$

3.33

 

$

0.86

 

Diluted

$

1.27

 

 

$

1.15

 

 

$

0.87

 

$

0.37

 

$

0.24

 

$

3.29

 

$

0.86

 

Weighted Average Common Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

7,774,887

 

 

 

7,777,469

 

 

 

7,670,224

 

 

7,713,970

 

 

7,715,040

 

 

7,741,244

 

 

7,708,768

 

Diluted

 

7,844,785

 

 

 

7,819,829

 

 

 

7,740,521

 

 

7,727,412

 

 

7,720,895

 

 

7,819,609

 

 

7,731,454

 

Dividends per common share

$

0.20

 

 

$

0.20

 

 

$

0.20

 

$

0.20

 

$

0.20

 

$

0.60

 

$

0.60

 

BANKWELL FINANCIAL GROUP, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited)

(Dollars in thousands, except share data)

 

 

As of

Computation of Tangible Common Equity to Tangible Assets

September 30,

2025

 

June 30,

2025

 

March 31,

2025

 

December 31,

2024

 

September 30,

2024

Total Equity

$

292,791

 

 

$

283,290

 

 

$

275,214

 

 

$

270,520

 

 

$

267,926

 

Less:

 

 

 

 

 

 

 

 

 

Goodwill

 

2,589

 

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

Other intangibles

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity

$

290,202

 

 

$

280,701

 

 

$

272,625

 

 

$

267,931

 

 

$

265,337

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

3,243,963

 

 

$

3,236,593

 

 

$

3,183,893

 

 

$

3,268,476

 

 

$

3,161,080

 

Less:

 

 

 

 

 

 

 

 

 

Goodwill

 

2,589

 

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

Other intangibles

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Assets

$

3,241,374

 

 

$

3,234,004

 

 

$

3,181,304

 

 

$

3,265,887

 

 

$

3,158,491

 

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity to Tangible Assets

 

8.95

%

 

 

8.68

%

 

 

8.57

%

 

 

8.20

%

 

 

8.40

%

 

As of

Computation of Fully Diluted Tangible Book Value per Common Share

September 30,

2025

 

June 30,

2025

 

March 31,

2025

 

December 31,

2024

 

September 30,

2024

Total shareholders’ equity

$

292,791

 

$

283,290

 

$

275,214

 

$

270,520

 

$

267,926

Less:

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

 

 

Common shareholders’ equity

$

292,791

 

$

283,290

 

$

275,214

 

$

270,520

 

$

267,926

Less:

 

 

 

 

 

 

 

 

 

Goodwill

 

2,589

 

 

2,589

 

 

2,589

 

 

2,589

 

 

2,589

Other intangibles

 

 

 

 

 

 

 

 

 

Tangible common shareholders’ equity

$

290,202

 

$

280,701

 

$

272,625

 

$

267,931

 

$

265,337

 

 

 

 

 

 

 

 

 

 

Common shares issued and outstanding

 

7,877,443

 

 

7,873,387

 

 

7,888,013

 

 

7,859,873

 

 

7,858,573

 

 

 

 

 

 

 

 

 

 

Fully Diluted Tangible Book Value per Common Share

$

36.84

 

$

35.65

 

$

34.56

 

$

34.09

 

$

33.76

BANKWELL FINANCIAL GROUP, INC.

EARNINGS PER SHARE (“EPS”) (unaudited)

(Dollars in thousands, except share data)

 

 

For the Quarter Ended September 30,

 

For the Nine Months Ended September 30,

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

 

(In thousands, except per share data)

Net income

$

10,078

 

 

$

1,926

 

 

$

26,054

 

 

$

6,807

 

Dividends to participating securities(1)

 

26

 

 

 

(38

)

 

 

79

 

 

 

(117

)

Undistributed earnings allocated to participating securities(1)

 

(142

)

 

 

(9

)

 

 

(386

)

 

 

(53

)

Net income for earnings per share calculation

 

9,962

 

 

 

1,879

 

 

 

25,747

 

 

 

6,637

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding, basic

 

7,774,887

 

 

 

7,715,040

 

 

 

7,741,244

 

 

 

7,708,768

 

Effect of dilutive equity-based awards(2)

 

69,898

 

 

 

5,825

 

 

 

78,365

 

 

 

22,686

 

Weighted average shares outstanding, diluted

 

7,844,785

 

 

 

7,720,865

 

 

 

7,819,609

 

 

 

7,731,454

 

Net earnings per common share:

 

 

 

 

 

 

 

Basic earnings per common share

$

1.28

 

 

$

0.24

 

 

$

3.33

 

 

$

0.86

 

Diluted earnings per common share

$

1.27

 

 

$

0.24

 

 

$

3.29

 

 

$

0.86

 

(1) Represents dividends paid and undistributed earnings allocated to unvested stock-based awards that contain non-forfeitable rights to dividends.

(2) Represents the effect of the assumed exercise of stock options and the vesting of restricted shares, as applicable, utilizing the treasury stock method.

BANKWELL FINANCIAL GROUP, INC.

NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS – QTD (unaudited)

(Dollars in thousands)

 

 

For the Quarter Ended

 

September 30, 2025

 

September 30, 2024

 

Average

Balance

 

Interest

 

Yield/

Rate (4)

 

Average

Balance

 

Interest

 

Yield/

Rate (4)

Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and Fed funds sold

$

278,698

 

$

2,853

 

4.06

%

 

$

253,664

 

$

3,205

 

5.03

%

Securities(1)

 

142,677

 

 

1,463

 

4.10

 

 

 

147,431

 

 

1,390

 

3.78

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

1,856,645

 

 

29,662

 

6.25

 

 

 

1,905,506

 

 

28,288

 

5.81

 

Residential real estate

 

34,518

 

 

510

 

5.91

 

 

 

47,481

 

 

736

 

6.20

 

Construction

 

173,380

 

 

3,536

 

7.98

 

 

 

156,273

 

 

3,070

 

7.69

 

Commercial business

 

572,187

 

 

11,634

 

7.96

 

 

 

512,507

 

 

10,783

 

8.23

 

Consumer

 

63,627

 

 

986

 

6.15

 

 

 

41,845

 

 

719

 

6.84

 

Total loans

 

2,700,357

 

 

46,328

 

6.71

 

 

 

2,663,612

 

 

43,596

 

6.40

 

Federal Home Loan Bank stock

 

6,942

 

 

89

 

5.11

 

 

 

5,655

 

 

122

 

8.32

 

Total earning assets

 

3,128,674

 

$

50,733

 

6.34

%

 

 

3,070,362

 

$

48,313

 

6.16

%

Other assets

 

98,547

 

 

 

 

 

 

90,410

 

 

 

 

Total assets

$

3,227,221

 

 

 

 

 

$

3,160,772

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

NOW

$

99,087

 

$

125

 

0.50

%

 

$

94,958

 

$

44

 

0.18

%

Money market

 

883,440

 

 

8,479

 

3.81

 

 

 

832,430

 

 

8,597

 

4.11

 

Savings

 

94,290

 

 

700

 

2.95

 

 

 

89,463

 

 

692

 

3.07

 

Time

 

1,253,878

 

 

13,281

 

4.20

 

 

 

1,347,857

 

 

16,246

 

4.79

 

Total interest bearing deposits

 

2,330,695

 

 

22,585

 

3.84

 

 

 

2,364,708

 

 

25,579

 

4.30

 

Borrowed Money

 

169,867

 

 

2,020

 

4.72

 

 

 

159,349

 

 

1,895

 

4.73

 

Total interest bearing liabilities

 

2,500,562

 

$

24,605

 

3.90

%

 

 

2,524,057

 

$

27,474

 

4.33

%

Noninterest bearing deposits

 

383,153

 

 

 

 

 

 

303,213

 

 

 

 

Other liabilities

 

54,507

 

 

 

 

 

 

62,602

 

 

 

 

Total liabilities

 

2,938,222

 

 

 

 

 

 

2,889,872

 

 

 

 

Shareholders’ equity

 

288,999

 

 

 

 

 

 

270,900

 

 

 

 

Total liabilities and shareholders’ equity

$

3,227,221

 

 

 

 

 

$

3,160,772

 

 

 

 

Net interest income(2)

 

 

$

26,128

 

 

 

 

 

$

20,839

 

 

Interest rate spread

 

 

 

 

2.44

%

 

 

 

 

 

1.83

%

Net Interest Margin(3)

 

 

 

 

3.34

%

 

 

 

 

 

2.72

%

(1)

Average balances and yields for securities are based on amortized cost.

(2)

The adjustment for securities and loans taxable equivalency amounted to $141 thousand and $122 thousand for the quarters ended September 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.

BANKWELL FINANCIAL GROUP, INC.

NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS – YTD (unaudited)

(Dollars in thousands)

 

 

For the Nine Months Ended

 

September 30, 2025

 

September 30, 2024

 

Average

Balance

 

Interest

 

Yield/

Rate (4)

 

Average

Balance

 

Interest

 

Yield/

Rate (4)

Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and Fed funds sold

$

307,737

 

$

9,453

 

4.11

%

 

$

273,138

 

$

10,460

 

5.12

%

Securities(1)

 

147,571

 

 

4,474

 

4.04

 

 

 

139,871

 

 

3,592

 

3.42

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

1,830,934

 

 

85,371

 

6.15

 

 

 

1,909,390

 

 

84,582

 

5.82

 

Residential real estate

 

37,838

 

 

1,740

 

6.13

 

 

 

48,912

 

 

2,226

 

6.07

 

Construction

 

182,857

 

 

10,856

 

7.83

 

 

 

158,884

 

 

8,913

 

7.37

 

Commercial business

 

546,700

 

 

32,839

 

7.92

 

 

 

517,880

 

 

32,097

 

8.14

 

Consumer

 

72,350

 

 

3,125

 

5.78

 

 

 

41,383

 

 

2,163

 

6.98

 

Total loans

 

2,670,679

 

 

133,931

 

6.61

 

 

 

2,676,449

 

 

129,981

 

6.38

 

Federal Home Loan Bank stock

 

5,522

 

 

286

 

6.90

 

 

 

5,670

 

 

357

 

8.43

 

Total earning assets

 

3,131,509

 

$

148,144

 

6.24

%

 

 

3,095,128

 

$

144,390

 

6.13

%

Other assets

 

92,451

 

 

 

 

 

 

92,249

 

 

 

 

Total assets

$

3,223,960

 

 

 

 

 

$

3,187,377

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

NOW

$

102,129

 

$

311

 

0.41

%

 

$

97,970

 

$

133

 

0.18

%

Money market

 

891,823

 

 

25,578

 

3.83

 

 

 

849,860

 

 

26,294

 

4.13

 

Savings

 

91,313

 

 

2,026

 

2.97

 

 

 

91,135

 

 

2,093

 

3.07

 

Time

 

1,301,450

 

 

42,525

 

4.37

 

 

 

1,319,031

 

 

47,098

 

4.77

 

Total interest bearing deposits

 

2,386,715

 

 

70,440

 

3.95

 

 

 

2,357,996

 

 

75,618

 

4.28

 

Borrowed Money

 

147,519

 

 

5,288

 

4.79

 

 

 

159,288

 

 

5,450

 

4.57

 

Total interest bearing liabilities

 

2,534,234

 

$

75,728

 

4.00

%

 

 

2,517,284

 

$

81,068

 

4.30

%

Noninterest bearing deposits

 

356,705

 

 

 

 

 

 

336,129

 

 

 

 

Other liabilities

 

51,354

 

 

 

 

 

 

62,631

 

 

 

 

Total liabilities

 

2,942,293

 

 

 

 

 

 

2,916,044

 

 

 

 

Shareholders’ equity

 

281,667

 

 

 

 

 

 

271,333

 

 

 

 

Total liabilities and shareholders’ equity

$

3,223,960

 

 

 

 

 

$

3,187,377

 

 

 

 

Net interest income(2)

 

 

$

72,416

 

 

 

 

 

$

63,322

 

 

Interest rate spread

 

 

 

 

2.24

%

 

 

 

 

 

1.83

%

Net Interest Margin(3)

 

 

 

 

3.08

%

 

 

 

 

 

2.73

%

(1)

Average balances and yields for securities are based on amortized cost.

(2)

The adjustment for securities and loans taxable equivalency amounted to $427 thousand and $239 thousand for the nine months ended September 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.

 

Christopher R. Gruseke, Chief Executive Officer

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

Bankwell Financial Group

(203) 652-0166

[email protected]

KEYWORDS: Connecticut United States North America

INDUSTRY KEYWORDS: Banking Professional Services Finance

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