BANKWELL FINANCIAL GROUP REPORTS OPERATING RESULTS FOR THE FIRST QUARTER, DECLARES SECOND QUARTER DIVIDEND
New Canaan, CT – April 23, 2025 – Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $6.9 million, or $0.87 per share for the first quarter of 2025, versus $3.0 million, or $0.37 per share, for the fourth quarter of 2024. The Company's Board of Directors declared a $0.20 per share cash dividend, payable May 20, 2025 to shareholders of record on May 9, 2025.
Pre-tax, pre-provision net revenue (PPNR) of $9.4 million, or $1.22 per share, increased 10.7% relative to the fourth quarter of 2024 of $8.5 million, or $1.11 per share.
Discussion of Outlook; Bankwell Financial Group Chief Executive Officer, Christopher R. Gruseke:
"We are happy to announce our first quarter financial results which are consistent with previously announced guidance. Net Interest Margin continues to expand and will continue to do so without further rate cuts by the Federal Reserve. Our SBA business has begun to make a growing contribution with gain-on-sale income expected to build over the course of the year. Asset quality improved materially with the successful resolution of two non-performing credits, bringing our non-performing asset ratio down to 83 basis points.
In early April we welcomed two new deposit teams, enabling our expansion into the New York City metro market. We will selectively look to take advantage of market disruptions to add talented professionals to the team.
We are operating in a time of unseen macroeconomic volatility, however, at this time we are reaffirming our financial guidance provided alongside fourth quarter earnings."
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Key Points for First Quarter and Bankwell’s Outlook
NIM Expansion on Improved Deposit Costs
•Reported net interest margin was 2.81%, up 21 basis points from the fourth quarter of 2024. While 9 basis points improvement is attributable to non-recurring items, reduced deposit costs contributed meaningfully to linked-quarter expansion.
•First quarter cost of deposits of 3.60% down 12 basis points to linked quarter, with a March 2025 rate of 3.52%. The primary driver of the improvement was the repricing of time deposits, with additional benefit realized from modest reductions in non-maturity deposit rates.
•Brokered deposits declined $80.6 million in the first quarter of 2025, with core deposits up $43.4 million, including $27.7 million growth in non-interest bearing deposits.
Credit Improvement Given Nonperforming Assets Dispositions.
•During the first quarter of 2025, the Company sold a $27.1 million multifamily commercial real estate loan on nonperforming status at par value.
•During the first quarter of 2025, the Company sold a property that it had acquired during the fourth quarter of 2024 and held as an Other Real Estate Owned (“OREO”) asset. The OREO asset had previously secured a non-performing construction loan. The Company received net proceeds from the sale of such OREO in the amount of $8.3 million.
•As of March 31, 2025, nonperforming assets as a percentage of total assets improved to 0.83% compared to 1.88% as of December 31, 2024.
Showing Progress on Several Strategic Initiatives.
•Gains on sale of SBA loans were $442 thousand for the quarter ended March 31, 2025, which represented an average sale price of 110%. The SBA Lending division originated $10 million during the quarter ended March 31, 2025 and continues with positive origination momentum into the second quarter.
•In April, the Company expanded its deposit-gathering capabilities by hiring two deposit teams in the New York City metropolitan area, totaling 7 FTEs. We will balance expansion with continued attention to platform efficiency, and our talent pipeline remains robust.
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First Quarter 2025 Financial Highlights and Key Performance Indicators (KPIs):
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
Return on average assets(1)(6)
0.86
%
0.37
%
0.24
%
0.14
%
0.47
%
Pre-tax, pre-provision net revenue return on average assets(1)(6)
1.18
%
1.05
%
1.13
%
1.22
%
1.10
%
Return on average shareholders' equity(1)(6)
10.16
%
4.35
%
2.83
%
1.65
%
5.59
%
Net interest margin(1)(6)
2.81
%
2.60
%
2.72
%
2.75
%
2.71
%
Efficiency Ratio(1)(3)
59.9
%
56.4
%
58.8
%
55.9
%
60.3
%
Noninterest expense to average assets(1)(6)
1.76
%
1.56
%
1.62
%
1.55
%
1.66
%
Net loan charge-offs as a percentage of average loans(1)(6)
0.00
%
0.11
%
0.56
%
0.01
%
0.11
%
Dividend payout(1)(4)
22.99
%
54.05
%
82.30
%
142.86
%
41.67
%
Fully diluted tangible book value per common share(1)(2)
$
34.56
$
34.09
$
33.76
$
33.61
$
33.57
Total capital to risk-weighted assets(1)(5)
13.22
%
12.70
%
12.83
%
12.98
%
12.63
%
Total common equity tier 1 capital to risk-weighted assets(1)(5)
12.11
%
11.64
%
11.80
%
11.73
%
11.60
%
Tier I Capital to Average Assets(1)(5)
10.13
%
10.09
%
10.24
%
10.17
%
10.09
%
Tangible common equity to tangible assets(1)(2)
8.57
%
8.20
%
8.40
%
8.42
%
8.42
%
Earnings per common share - diluted
$
0.87
$
0.37
$
0.24
$
0.14
$
0.48
Common shares issued and outstanding
7,888,013
7,859,873
7,858,573
7,866,499
7,908,180
(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 first quarter ended March 31, 2025 was $9.4 million, an increase of 10.7% from $8.5 million recognized for the fourth quarter ended December 31, 2024.
For the Quarter Ended
(Dollars in thousands)
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
Net interest income
$
22,066
$
20,199
$
20,717
$
21,219
$
21,147
Total noninterest income
1,505
964
1,156
683
915
Total revenues
23,571
21,163
21,873
21,902
22,062
Total noninterest expense
14,141
12,644
12,865
12,245
13,297
PPNR
$
9,430
$
8,519
$
9,008
$
9,657
$
8,765
(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 March 31, 2025 were $23.6 million, versus $22.1 million for the quarter ended December 31, 2024. The increase in revenues for the
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quarter ended March 31, 2025 was mainly attributable to improved funding costs as well as past due interest collected from the disposition of the $27.1 million multifamily commercial real estate nonperforming loan. Additional favorability for the quarter ended March 31, 2025 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 March 31, 2025 and December 31, 2024 was 2.81% and 2.60%, respectively. The increase in the net interest margin was mainly due to improved funding costs as well as past due interest collected from the disposition of the $27.1 million multifamily commercial real estate nonperforming loan.
•Total non-interest expense of $14.1 million increased 11.8% compared to the fourth quarter which was mainly driven by increase in salaries and employee benefits partially offset by reduced OREO expenses.
Allowance for Credit Losses - Loans ("ACL-Loans")
The ACL-Loans was $29.5 million as of March 31, 2025 compared to $29.0 million as of December 31, 2024. The ACL-Loans as a percentage of total loans was 1.11% as of March 31, 2025 compared to 1.07% as of December 31, 2024.
Provision for credit losses was $0.5 million for the quarter ended March 31, 2025. Total nonperforming loans decreased $26.9 million to $26.4 million as of March 31, 2025 when compared to the previous quarter. The decrease in nonperforming loans was mainly due to the sale of a $27.1 million multifamily commercial real estate loan in the first quarter of 2025. Nonperforming assets as a percentage of total assets decreased to 0.83% at March 31, 2025 from 1.88% at December 31, 2024.
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BANKWELL FINANCIAL GROUP, INC.
ASSET QUALITY (unaudited)
(Dollars in thousands)
For the Quarter Ended
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
ACL-Loans:
Balance at beginning of period
$
29,007
$
27,752
$
36,083
$
27,991
$
27,946
Charge-offs:
Residential real estate
—
—
—
(9)
(132)
Commercial real estate
(67)
(1,100)
(8,184)
(522)
(3,306)
Commercial business
—
(703)
(7,010)
—
(197)
Consumer
(33)
(5)
(17)
(12)
(49)
Construction
—
(1,155)
(616)
—
—
Total charge-offs
(100)
(2,963)
(15,827)
(543)
(3,684)
Recoveries:
Residential real estate
—
—
—
141
—
Commercial real estate
—
—
1,013
113
—
Commercial business
4
4
(34)
—
27
Consumer
36
5
1
13
4
Construction
—
—
—
—
—
Total recoveries
40
9
980
267
31
Net loan (charge-offs) recoveries
(60)
(2,954)
(14,847)
(276)
(3,653)
Provision (credit) for credit losses - loans
538
4,209
6,516
8,368
3,698
Balance at end of period
$
29,485
$
29,007
$
27,752
$
36,083
$
27,991
As of
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
Asset quality:
Nonaccrual loans
Residential real estate
$
811
$
791
$
1,316
$
1,339
$
1,237
Commercial real estate
17,946
44,814
46,360
28,088
19,083
Commercial business
7,626
7,672
9,101
17,396
16,841
Construction
—
—
8,766
9,382
9,382
Consumer
—
—
—
—
—
Total nonaccrual loans
26,383
53,277
65,543
56,205
46,543
Other real estate owned
—
8,299
—
—
—
Total nonperforming assets
$
26,383
$
61,576
$
65,543
$
56,205
$
46,543
Nonperforming loans as a % of total loans
1.00
%
1.97
%
2.42
%
2.12
%
1.74
%
Nonperforming assets as a % of total assets
0.83
%
1.88
%
2.07
%
1.79
%
1.48
%
ACL-loans as a % of total loans
1.11
%
1.07
%
1.07
%
1.36
%
1.04
%
ACL-loans as a % of nonperforming loans
111.76
%
54.44
%
44.26
%
64.20
%
60.14
%
Total past due loans to total loans
1.08
%
1.63
%
2.40
%
0.84
%
1.44
%
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Financial Condition & Capital
Assets totaled $3.2 billion at March 31, 2025, a decrease of $84.6 million, or 2.6% compared to December 31, 2024. Gross loans totaled $2.6 billion at March 31, 2025, a decrease of $61.0 million, or 2.3% compared to December 31, 2024. Deposits totaled $2.8 billion at March 31, 2025, a decrease of $37.1 million, or 1.3% compared to December 31, 2024. Brokered deposits have decreased $80.6 million or 11.4%, when compared to December 31, 2024.
Period End Loan Composition
March 31, 2025
December 31, 2024
March 31, 2024
Current QTD % Change
Year over Year % Change
Residential Real Estate
$
40,089
$
42,766
$
49,098
(6.3)
%
(18.3)
%
Commercial Real Estate(1)
1,810,923
1,899,134
1,927,636
(4.6)
(6.1)
Construction
188,339
173,555
151,967
8.5
23.9
Total Real Estate Loans
2,039,351
2,115,455
2,128,701
(3.6)
(4.2)
Commercial Business
529,000
515,125
508,912
2.7
3.9
Consumer
76,553
75,308
41,946
1.7
82.5
Total Loans
$
2,644,904
$
2,705,888
$
2,679,559
(2.3)
%
(1.3)
%
(1) Includes owner occupied commercial real estate of $0.7 billion at March 31, 2025, December 31, 2024, and March 31, 2024, respectively.
Period End Deposit Composition
March 31, 2025
December 31, 2024
March 31, 2024
Current QTD % Change
Year over Year % Change
Noninterest bearing demand
$
349,525
$
321,875
$
376,248
8.6
%
(7.1)
%
NOW
112,695
105,090
95,227
7.2
18.3
Money Market
900,352
899,413
818,408
0.1
10.0
Savings
91,378
90,220
92,188
1.3
(0.9)
Time
1,296,495
1,370,972
1,291,451
(5.4)
0.4
Total Deposits
$
2,750,445
$
2,787,570
$
2,673,522
(1.3)
%
2.9
%
Shareholders’ equity totaled $275.2 million as of March 31, 2025, an increase of $4.7 million compared to December 31, 2024, primarily a result of net income of $6.9 million for the year ended March 31, 2025. The increase was partially offset by dividends paid of $1.6 million and share repurchases of $0.9 million.
As of March 31, 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 13.22%, 12.11%, and 10.13%, respectively. The Company repurchased 29,924 shares at a weighted average price of $30.46 per share during the quarter ended March 31, 2025.
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We recommend reading this earnings release in conjunction with the First Quarter 2025 Investor Presentation, located at https://investor.mybankwell.com/events-and-presentations/ and included as an exhibit to our April 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 April 24, 2025, at 10:00 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)
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
ASSETS
Cash and due from banks
$
292,006
$
293,552
$
275,829
$
234,277
$
245,043
Federal funds sold
12,922
13,972
15,508
17,103
2,584
Cash and cash equivalents
304,928
307,524
291,337
251,380
247,627
Investment securities
Marketable equity securities, at fair value
2,164
2,118
2,148
2,079
2,069
Available for sale investment securities, at fair value
97,321
107,428
108,866
107,635
108,417
Held to maturity investment securities, at amortized cost
36,478
36,553
34,886
28,286
15,739
Total investment securities
135,963
146,099
145,900
138,000
126,225
Loans receivable (net of ACL-Loans of $29,485, $29,007, $27,752, $36,083, and $27,991 at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively)
2,611,495
2,672,959
2,591,551
2,616,691
2,646,686
Accrued interest receivable
15,409
14,535
14,714
14,675
15,104
Federal Home Loan Bank stock, at cost
3,583
5,655
5,655
5,655
5,655
Premises and equipment, net
22,978
23,856
24,780
25,599
26,161
Bank-owned life insurance
53,136
52,791
52,443
52,097
51,764
Goodwill
2,589
2,589
2,589
2,589
2,589
Deferred income taxes, net
9,551
9,742
9,300
11,345
9,137
Other real estate owned
—
8,299
—
—
—
Other assets
24,261
24,427
22,811
23,623
24,326
Total assets
$
3,183,893
$
3,268,476
$
3,161,080
$
3,141,654
$
3,155,274
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits
Noninterest bearing deposits
$
349,525
$
321,875
$
295,552
$
328,475
$
376,248
Interest bearing deposits
2,400,920
2,465,695
2,392,619
2,333,900
2,297,274
Total deposits
2,750,445
2,787,570
2,688,171
2,662,375
2,673,522
Advances from the Federal Home Loan Bank
40,000
90,000
90,000
90,000
90,000
Subordinated debentures
69,513
69,451
69,389
69,328
69,266
Accrued expenses and other liabilities
48,721
50,935
45,594
52,975
54,454
Total liabilities
2,908,679
2,997,956
2,893,154
2,874,678
2,887,242
Shareholders’ equity
Common stock, no par value
118,439
119,108
118,429
118,037
118,401
Retained earnings
157,971
152,656
151,257
150,895
151,350
Accumulated other comprehensive (loss)
(1,196)
(1,244)
(1,760)
(1,956)
(1,719)
Total shareholders’ equity
275,214
270,520
267,926
266,976
268,032
Total liabilities and shareholders’ equity
$
3,183,893
$
3,268,476
$
3,161,080
$
3,141,654
$
3,155,274
8
BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(Dollars in thousands, except share data)
For the Quarter Ended
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
Interest and dividend income
Interest and fees on loans
$
43,475
$
42,851
$
43,596
$
43,060
$
43,325
Interest and dividends on securities
1,445
1,482
1,390
1,190
1,130
Interest on cash and cash equivalents
3,557
3,510
3,205
3,429
3,826
Total interest and dividend income
48,477
47,843
48,191
47,679
48,281
Interest expense
Interest expense on deposits
24,772
25,640
25,579
24,677
25,362
Interest expense on borrowings
1,639
2,004
1,895
1,783
1,772
Total interest expense
26,411
27,644
27,474
26,460
27,134
Net interest income
22,066
20,199
20,717
21,219
21,147
Provision (credit) for credit losses
463
4,458
6,296
8,183
3,683
Net interest income after provision (credit) for credit losses
21,603
15,741
14,421
13,036
17,464
Noninterest income
Bank owned life insurance
344
348
346
333
329
Service charges and fees
602
589
575
495
304
Gains and fees from sales of loans
442
24
133
45
321
Other
117
3
102
(190)
(39)
Total noninterest income
1,505
964
1,156
683
915
Noninterest expense
Salaries and employee benefits
7,052
5,056
6,223
6,176
6,291
Occupancy and equipment
2,575
2,600
2,334
2,238
2,322
Professional services
1,529
1,286
1,142
989
1,065
Data processing
885
905
851
755
740
Director fees
348
342
292
306
900
FDIC insurance
779
862
853
705
930
Marketing
142
175
73
90
114
Other
831
1,418
1,097
986
935
Total noninterest expense
14,141
12,644
12,865
12,245
13,297
Income before income tax expense
8,967
4,061
2,712
1,474
5,082
Income tax expense
2,079
1,098
786
356
1,319
Net income
$
6,888
$
2,963
$
1,926
$
1,118
$
3,763
Earnings Per Common Share:
Basic
$
0.88
$
0.37
$
0.24
$
0.14
$
0.48
Diluted
$
0.87
$
0.37
$
0.24
$
0.14
$
0.48
Weighted Average Common Shares Outstanding:
Basic
7,670,224
7,713,970
7,715,040
7,747,675
7,663,521
Diluted
7,740,521
7,727,412
7,720,895
7,723,888
7,687,679
Dividends per common share
$
0.20
$
0.20
$
0.20
$
0.20
$
0.20
9
BANKWELL FINANCIAL GROUP, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited)
(Dollars in thousands, except share data)
As of
Computation of Tangible Common Equity to Tangible Assets
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
Total Equity
$
275,214
$
270,520
$
267,926
$
266,976
$
268,032
Less:
Goodwill
2,589
2,589
2,589
2,589
2,589
Other intangibles
—
—
—
—
—
Tangible Common Equity
$
272,625
$
267,931
$
265,337
$
264,387
$
265,443
Total Assets
$
3,183,893
$
3,268,476
$
3,161,080
$
3,141,654
$
3,155,274
Less:
Goodwill
2,589
2,589
2,589
2,589
2,589
Other intangibles
—
—
—
—
—
Tangible Assets
$
3,181,304
$
3,265,887
$
3,158,491
$
3,139,065
$
3,152,685
Tangible Common Equity to Tangible Assets
8.57
%
8.20
%
8.40
%
8.42
%
8.42
%
As of
Computation of Fully Diluted Tangible Book Value per Common Share
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
Total shareholders' equity
$
275,214
$
270,520
$
267,926
$
266,976
$
268,032
Less:
Preferred stock
—
—
—
—
—
Common shareholders' equity
$
275,214
$
270,520
$
267,926
$
266,976
$
268,032
Less:
Goodwill
2,589
2,589
2,589
2,589
2,589
Other intangibles
—
—
—
—
—
Tangible common shareholders' equity
$
272,625
$
267,931
$
265,337
$
264,387
$
265,443
Common shares issued and outstanding
7,888,013
7,859,873
7,858,573
7,866,499
7,908,180
Fully Diluted Tangible Book Value per Common Share
$
34.56
$
34.09
$
33.76
$
33.61
$
33.57
10
BANKWELL FINANCIAL GROUP, INC.
EARNINGS PER SHARE ("EPS") (unaudited)
(Dollars in thousands, except share data)
For the Three Months Ended March 31,
2025
2024
(In thousands, except per share data)
Net income
$
6,888
$
3,763
Dividends to participating securities(1)
(26)
(40)
Undistributed earnings allocated to participating securities(1)
(111)
(66)
Net income for earnings per share calculation
6,751
3,657
Weighted average shares outstanding, basic
7,670,224
7,663,521
Effect of dilutive equity-based awards(2)
70,297
24,158
Weighted average shares outstanding, diluted
7,740,521
7,687,679
Net earnings per common share:
Basic earnings per common share
$
0.88
$
0.48
Diluted earnings per common share
$
0.87
$
0.48
(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.
11
BANKWELL FINANCIAL GROUP, INC.
NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - QTD (unaudited)
(Dollars in thousands)
For the Quarter Ended
March 31, 2025
March 31, 2024
Average Balance
Interest
Yield/
Rate (4)
Average Balance
Interest
Yield/
Rate (4)
Assets:
Cash and Fed funds sold
$
349,235
$
3,557
4.13
%
$
292,662
$
3,826
5.26
%
Securities(1)
150,650
1,477
3.92
134,737
1,060
3.15
Loans:
Commercial real estate
1,848,208
28,285
6.12
1,922,413
28,643
5.89
Residential real estate
41,585
633
6.09
50,213
718
5.72
Construction
178,878
3,468
7.76
161,047
2,973
7.30
Commercial business
508,417
10,007
7.87
517,102
10,284
7.87
Consumer
81,483
1,082
5.38
39,964
707
7.12
Total loans
2,658,571
43,475
6.54
2,690,739
43,325
6.37
Federal Home Loan Bank stock
4,596
110
9.71
5,702
121
8.51
Total earning assets
3,163,052
$
48,619
6.15
%
3,123,840
$
48,332
6.12
%
Other assets
89,743
90,905
Total assets
$
3,252,795
$
3,214,745
Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW
$
99,487
$
110
0.45
%
$
91,674
$
39
0.17
%
Money market
893,361
8,521
3.87
883,851
9,146
4.16
Savings
88,167
658
3.03
92,972
714
3.09
Time
1,378,468
15,484
4.56
1,317,069
15,463
4.72
Total interest bearing deposits
2,459,483
24,773
4.08
2,385,566
25,362
4.28
Borrowed Money
133,917
1,639
4.96
159,226
1,772
4.48
Total interest bearing liabilities
2,593,400
$
26,412
4.13
%
2,544,792
$
27,134
4.29
%
Noninterest bearing deposits
333,796
337,020
Other liabilities
50,555
62,356
Total liabilities
2,977,751
2,944,168
Shareholders' equity
275,044
270,577
Total liabilities and shareholders' equity
$
3,252,795
$
3,214,745
Net interest income(2)
$
22,207
$
21,198
Interest rate spread
2.02
%
1.83
%
Net interest margin(3)
2.81
%
2.71
%
(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 $51 thousand for the quarters ended March 31, 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.