Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net
income of $1.1 million, or $0.14 per share for the second quarter
of 2024, versus $8.0 million, or $1.02 per share, for the same
period in 2023. Pre-tax, pre-provision net revenue ("PPNR") was
$9.7 million, or $1.25 per share, for the second quarter of 2024,
versus $12.8 million, or $1.68 per share for the same period in
2023.
The Company's Board of Directors declared a $0.20 per share cash
dividend, payable August 23, 2024 to shareholders of record on
August 12, 2024.
We recommend reading this earnings release in conjunction
with the Second Quarter 2024 Investor Presentation, located at
http://investor.mybankwell.com/Presentations and included as an
exhibit to our July 24, 2024 Current Report on Form 8-K.
Notes Bankwell Financial Group President and CEO, Christopher R.
Gruseke:
"The Company’s core profitability has begun to expand; PPNR
Return on Average Assets grew to 1.22% for the quarter, while the
Net interest margin (“NIM”) has expanded to 2.75%. We continue to
achieve peer-leading operational efficiency with a Noninterest
Expense to Average Assets ratio of 1.55% for the quarter. Going
forward, the Company’s liability sensitive balance sheet is well
positioned for any potential Federal Reserve rate cuts.
Earnings per share for the second quarter were reduced by
approximately $0.66 due to a specific reserve taken on a non-real
estate related commercial credit. The Company announced this
addition to its Allowance for Credit Losses in its 8-K filed on
July 2, 2024. Notwithstanding this idiosyncratic credit event,
other areas of the loan portfolio have experienced improving credit
trends. A significant portion of criticized and classified loans
have demonstrated improved operating results and may be subject to
future credit upgrades if these trends continue. Additional details
regarding the specific reserve as well as other credit metrics can
be found in the accompanying Investor Presentation.
We are also pleased to announce that the Company will host its
first earnings call after third quarter financial results are
released in October 2024. The date and time of that call will be
announced in the coming weeks."
Second Quarter 2024 Highlights:
- PPNR was $9.7 million and PPNR return on average assets was
1.22% for the quarter ended June 30, 2024.
- Net income of $1.1 million for the quarter reflects the impact
of an $8.2 million provision for credit losses.
- $6.6 million of the provision for credit losses is related to a
specific reserve taken against an $8.7 million commercial business
credit1.
- The net interest margin was 2.75% and 2.73% for the quarter and
six months ended June 30, 2024, respectively.
- Noninterest expense to average assets was 1.55% and 1.60% for
the quarter and six months ended June 30, 2024, respectively.
- Total gross loans were $2.7 billion, decreasing $61.4 million,
or 2.3%, compared to December 31, 2023.
- Average yield on total loans was 6.37% for the six months ended
June 30, 2024.
- Deposits were $2.7 billion, decreasing $74.4 million, or 2.7%,
compared to December 31, 2023.
- Brokered deposits decreased $144.2 million compared to December
31, 2023.
- FDIC-insured deposits totaled $1.9 billion and represent 72.9%
of total deposits as of June 30, 2024.
- Return on average assets was 0.14% and 0.31% for the quarter
and six months ended June 30, 2024, respectively.
- Return on average tangible common equity was 1.67% and 3.65%
for the quarter and six months ended June 30, 2024,
respectively.
- Investment securities totaled $138.0 million and represent 4.4%
of total assets.
- The Company repurchased 40,140 shares and 76,320 at the
weighted average prices of $24.55 and $24.94 per share for the
quarter and six months ended June 30, 2024, respectively.
1 - 8-K was filed on July 2, 2024.
Earnings and Performance
Revenues (net interest income plus noninterest income) for the
quarter ended June 30, 2024 were $21.9 million, versus $25.4
million for the quarter ended June 30, 2023. Revenues for the six
months ended June 30, 2024 were $44.0 million, versus $52.5 million
for the six months ended June 30, 2023. The decrease in revenues
for the quarter and six months ended June 30, 2024 was attributable
to an increase in interest expense on deposits and lower gains from
loan sales partially offset by an increase in interest and fees on
loans, given higher loan yields2 and prepayment fees.
Net income for the quarter ended June 30, 2024 was $1.1 million,
versus $8.0 million for the quarter ended June 30, 2023. Net income
for the six months ended June 30, 2024 was $4.9 million, versus
$18.4 million for the six months ended June 30, 2023. The decrease
in net income for the quarter and six months ended 2024 was
primarily due to the aforementioned decrease in revenues and an
increase in provision for credit losses.
Basic and diluted earnings per share were $0.14 and $0.14,
respectively, for the quarter ended June 30, 2024 compared to basic
and diluted earnings per share of $1.02 and $1.02, respectively,
for the quarter ended June 30, 2023. Basic and diluted earnings per
share were $0.62 and $0.62, respectively, for the six months ended
June 30, 2024 compared to basic and diluted earnings per share of
$2.36 and $2.34, respectively, for the six months ended June 30,
2023.
The net interest margin (fully taxable equivalent basis) for the
quarters ended June 30, 2024 and June 30, 2023 was 2.75% and 3.07%,
respectively. The net interest margin (fully taxable equivalent
basis) for the six months ended June 30, 2024 and June 30, 2023 was
2.73% and 3.15%, respectively. The decrease in the net interest
margin was due to an increase in funding costs partially offset by
an increase in interest income on earning assets.
2 - The increase in overall loan yields was 28 bps and 38 bps
for the quarter and six months ended June 30, 2024,
respectively.
Allowance for Credit Losses - Loans ("ACL-Loans")
The ACL-Loans was $36.1 million as of June 30, 2024 compared to
$27.9 million as of December 31, 2023. The ACL-Loans as a
percentage of total loans was 1.36% as of June 30, 2024 compared to
1.03% as of December 31, 2023. Provision for credit losses was $8.2
million for the quarter ended June 30, 2024. The increase in the
provision for credit losses for the quarter was primarily due to an
additional $7.4 million for two loans. Of the $7.4 million, $6.6
million is related to a specific reserve taken against an $8.7
million commercial business credit. The credit had been previously
reported as a non-performing loan as of the fourth quarter of 2023
and had previously carried a $0.4 million specific reserve. The
Company's estimated remaining exposure for the commercial business
credit is $1.7 million. The additional $0.8 million specific
reserve was related to a construction loan.
Financial Condition
Assets totaled $3.1 billion at June 30, 2024, a decrease of
$73.8 million, or 2.3% compared to December 31, 2023. Gross loans
totaled $2.7 billion at June 30, 2024, a decrease of $61.4 million,
or 2.3% compared to December 31, 2023. Deposits totaled $2.7
billion at June 30, 2024, a decrease of $74.4 million, or 2.7%
compared to December 31, 2023.
Capital
Shareholders’ equity totaled $267.0 million as of June 30, 2024,
an increase of $1.2 million compared to December 31, 2023,
primarily a result of net income of $4.9 million for the six months
ended June 30, 2024. The increase was partially offset by dividends
paid of $3.2 million.
About Bankwell Financial Group
Bankwell is a commercial bank that serves the banking needs of
residents and businesses throughout Fairfield and New Haven
Counties, Connecticut. For more information about this press
release, interested parties may contact Christopher R. Gruseke,
President and Chief Executive Officer or Courtney E. Sacchetti,
Executive Vice President and Chief Financial Officer of Bankwell
Financial Group at (203) 652-0166.
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,
adjusted noninterest expense, operating revenue, efficiency ratio,
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, 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)
June 30, 2024
March 31, 2024
December 31,
2023
June 30, 2023
ASSETS
Cash and due from banks
$
234,277
$
245,043
$
267,521
$
207,345
Federal funds sold
17,103
2,584
1,636
54,706
Cash and cash equivalents
251,380
247,627
269,157
262,051
Investment securities
Marketable equity securities, at fair
value
2,079
2,069
2,070
2,017
Available for sale investment securities,
at fair value
107,635
108,417
109,736
99,938
Held to maturity investment securities, at
amortized cost
28,286
15,739
15,817
15,884
Total investment securities
138,000
126,225
127,623
117,839
Loans receivable (net of ACL-Loans of
$36,083, $27,991, $27,946, and $30,694 at June 30, 2024, March 31,
2024, December 31, 2023, and June 30, 2023, respectively)
2,616,691
2,646,686
2,685,301
2,736,607
Accrued interest receivable
14,675
15,104
14,863
14,208
Federal Home Loan Bank stock, at cost
5,655
5,655
5,696
5,696
Premises and equipment, net
25,599
26,161
27,018
27,658
Bank-owned life insurance
52,097
51,764
51,435
50,816
Goodwill
2,589
2,589
2,589
2,589
Deferred income taxes, net
11,345
9,137
9,383
10,014
Other assets
23,623
24,326
22,417
25,229
Total assets
$
3,141,654
$
3,155,274
$
3,215,482
$
3,252,707
LIABILITIES AND SHAREHOLDERS’
EQUITY
Liabilities
Deposits
Noninterest bearing deposits
$
328,475
$
376,248
$
346,172
$
367,635
Interest bearing deposits
2,333,900
2,297,274
2,390,585
2,421,228
Total deposits
2,662,375
2,673,522
2,736,757
2,788,863
Advances from the Federal Home Loan
Bank
90,000
90,000
90,000
90,000
Subordinated debentures
69,328
69,266
69,205
69,082
Accrued expenses and other liabilities
52,975
54,454
53,768
55,949
Total liabilities
2,874,678
2,887,242
2,949,730
3,003,894
Shareholders’ equity
Common stock, no par value
118,037
118,401
118,247
116,541
Retained earnings
150,895
151,350
149,169
133,988
Accumulated other comprehensive (loss)
(1,956
)
(1,719
)
(1,664
)
(1,716
)
Total shareholders’ equity
266,976
268,032
265,752
248,813
Total liabilities and shareholders’
equity
$
3,141,654
$
3,155,274
$
3,215,482
$
3,252,707
BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(Dollars in thousands, except share
data)
For the Quarter Ended
For the Six Months
Ended
June 30, 2024
March 31, 2024
December 31,
2023
June 30, 2023
June 30, 2024
June 30, 2023
Interest and dividend income
Interest and fees on loans
$
43,060
$
43,325
$
44,122
$
42,482
$
86,385
$
82,205
Interest and dividends on securities
1,190
1,130
1,108
1,002
2,320
2,002
Interest on cash and cash equivalents
3,429
3,826
4,164
3,022
7,255
6,590
Total interest and dividend income
47,679
48,281
49,394
46,506
95,960
90,797
Interest expense
Interest expense on deposits
24,677
25,362
25,307
20,777
50,039
37,810
Interest expense on borrowings
1,783
1,772
1,842
1,738
3,555
3,455
Total interest expense
26,460
27,134
27,149
22,515
53,594
41,265
Net interest income
21,219
21,147
22,245
23,991
42,366
49,532
Provision (credit) for credit
losses
8,183
3,683
(960
)
2,579
11,866
3,405
Net interest income after provision for
credit losses
13,036
17,464
23,205
21,412
30,500
46,127
Noninterest income
Bank owned life insurance
333
329
316
292
662
573
Service charges and fees
495
304
688
361
799
647
Gains and fees from sales of loans
45
321
79
725
366
1,656
Other
(190
)
(39
)
46
23
(229
)
51
Total noninterest income
683
915
1,129
1,401
1,598
2,927
Noninterest expense
Salaries and employee benefits
6,176
6,291
6,088
6,390
12,467
12,471
Occupancy and equipment
2,238
2,322
2,231
2,204
4,561
4,288
Professional services
989
1,065
1,033
692
2,054
2,014
Data processing
755
740
747
729
1,495
1,400
Director fees
306
900
605
453
1,206
845
FDIC insurance
705
930
1,026
1,050
1,635
2,112
Marketing
90
114
139
177
203
328
Other
986
935
995
946
1,921
1,874
Total noninterest expense
12,245
13,297
12,864
12,641
25,542
25,332
Income before income tax
expense
1,474
5,082
11,470
10,172
6,556
23,722
Income tax expense
356
1,319
2,946
2,189
1,675
5,360
Net income
$
1,118
$
3,763
$
8,524
$
7,983
$
4,881
$
18,362
Earnings Per Common Share:
Basic
$
0.14
$
0.48
$
1.09
$
1.02
$
0.62
$
2.36
Diluted
$
0.14
$
0.48
$
1.09
$
1.02
$
0.62
$
2.34
Weighted Average Common Shares
Outstanding:
Basic
7,747,675
7,663,521
7,603,938
7,593,417
7,705,598
7,574,160
Diluted
7,723,888
7,687,679
7,650,451
7,601,562
7,721,880
7,639,828
Dividends per common share
$
0.20
$
0.20
$
0.20
$
0.20
$
0.40
$
0.40
BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(unaudited)
For the Quarter Ended
For the Six Months
Ended
June 30, 2024
March 31, 2024
December 31, 2023
June 30, 2023
June 30, 2024
June 30, 2023
Performance ratios:
Return on average assets
0.14
%
0.47
%
1.03
%
0.99
%
0.31
%
1.14
%
Return on average shareholders' equity
1.65
%
5.59
%
12.82
%
12.91
%
3.61
%
15.15
%
Return on average tangible common
equity
1.67
%
5.65
%
12.95
%
13.05
%
3.65
%
15.31
%
Net interest margin
2.75
%
2.71
%
2.81
%
3.07
%
2.73
%
3.15
%
Efficiency ratio(1)
55.9
%
60.3
%
55.0
%
49.8
%
58.1
%
48.3
%
Net loan charge-offs as a % of average
loans
0.01
%
0.11
%
0.01
%
—
%
0.13
%
0.02
%
Dividend payout ratio(2)
142.86
%
41.67
%
18.35
%
19.61
%
64.52
%
17.09
%
(1) 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.
(2) The dividend payout ratio is calculated
by dividing dividends per share by earnings per share.
As of
June 30, 2024
March 31, 2024
December 31, 2023
June 30, 2023
Capital ratios:
Total Common Equity Tier 1 Capital to
Risk-Weighted Assets(1)
11.73
%
11.60
%
11.30
%
10.34
%
Total Capital to Risk-Weighted
Assets(1)
12.98
%
12.63
%
12.32
%
11.41
%
Tier I Capital to Risk-Weighted
Assets(1)
11.73
%
11.60
%
11.30
%
10.34
%
Tier I Capital to Average Assets(1)
10.17
%
10.09
%
9.81
%
9.41
%
Tangible common equity to tangible
assets
8.42
%
8.42
%
8.19
%
7.58
%
Fully diluted tangible book value per
common share
$
33.61
$
33.57
$
33.39
$
31.45
(1) Represents Bank ratios. Current period
capital ratios are preliminary subject to finalization of the FDIC
Call Report.
BANKWELL FINANCIAL GROUP, INC.
ASSET QUALITY (unaudited)
(Dollars in thousands)
For the Quarter Ended
June 30, 2024
March 31, 2024
December 31, 2023
June 30, 2023
ACL-Loans:
Balance at beginning of period
$
27,991
$
27,946
$
29,284
$
27,998
Charge-offs:
Residential real estate
(9
)
(132
)
—
—
Commercial real estate
(522
)
(3,306
)
(824
)
—
Commercial business
—
(197
)
—
—
Consumer
(12
)
(49
)
(15
)
(25
)
Total charge-offs
(543
)
(3,684
)
(839
)
(25
)
Recoveries:
Residential real estate
141
—
—
—
Commercial real estate
113
—
—
—
Commercial business
—
27
464
32
Consumer
13
4
3
10
Total recoveries
267
31
467
42
Net loan (charge-offs) recoveries
(276
)
(3,653
)
(372
)
17
Provision (credit) for credit losses -
loans
8,368
3,698
(966
)
2,679
Balance at end of period
$
36,083
$
27,991
$
27,946
$
30,694
As of
June 30, 2024
March 31, 2024
December 31, 2023
June 30, 2023
Asset quality:
Nonaccrual loans
Residential real estate
$
1,339
$
1,237
$
1,386
$
1,429
Commercial real estate
28,088
19,083
23,009
1,905
Commercial business
17,396
16,841
15,430
2,815
Construction
9,382
9,382
9,382
9,382
Consumer
—
—
—
—
Total nonaccrual loans
56,205
46,543
49,207
15,531
Other real estate owned
—
—
—
—
Total nonperforming assets
$
56,205
$
46,543
$
49,207
$
15,531
Nonperforming loans as a % of total
loans
2.12
%
1.74
%
1.81
%
0.56
%
Nonperforming assets as a % of total
assets
1.79
%
1.48
%
1.53
%
0.48
%
ACL-loans as a % of total loans
1.36
%
1.04
%
1.03
%
1.11
%
ACL-loans as a % of nonperforming
loans
64.20
%
60.14
%
56.79
%
197.63
%
Total past due loans to total loans
0.84
%
1.44
%
0.78
%
1.30
%
Total nonaccrual loans increased $7.0 million to $56.2 million
as of June 30, 2024 when compared to December 31, 2023. The
increase was primarily due to a $13.9 million commercial real
estate non-owner occupied office loan put on nonaccrual during the
six months ended June 30, 2024. This loan represents a 16.5%
participation in a $84.3 million club transaction. The increase was
partially offset by the payoff of two loans totaling $4.4 million
and four loans that were partially charged-off for a total of $4.0
million during the six months ended June 30, 2024.
Nonperforming assets as a percentage of total assets increased
to 1.79% at June 30, 2024 from 1.53% at December 31, 2023. The
ACL-Loans at June 30, 2024 was $36.1 million, representing 1.36% of
total loans.
BANKWELL FINANCIAL GROUP, INC.
LOAN & DEPOSIT PORTFOLIO
(unaudited)
(Dollars in thousands)
Period End Loan Composition
June 30, 2024
March 31, 2024
December 31, 2023
Current QTD %
Change
YTD % Change
Residential Real Estate
$
47,875
$
49,098
$
50,931
(2.5
)%
(6.0
)%
Commercial Real Estate(1)
1,912,701
1,927,636
1,947,648
(0.8
)
(1.8
)
Construction
150,259
151,967
183,414
(1.1
)
(18.1
)
Total Real Estate Loans
2,110,835
2,128,701
2,181,993
(0.8
)
(3.3
)
Commercial Business
503,444
508,912
500,569
(1.1
)
0.6
Consumer
42,906
41,946
36,045
2.3
19.0
Total Loans
$
2,657,185
$
2,679,559
$
2,718,607
(0.8
)%
(2.3
)%
(1) Includes owner occupied commercial
real estate of $0.7 billion at June 30, 2024, March 31, 2024, and
December 31, 2023, respectively.
Gross loans totaled $2.7 billion at June 30, 2024, a decrease of
$61.4 million or 2.3% compared to December 31, 2023.
Period End Deposit Composition
June 30, 2024
March 31, 2024
December 31, 2023
Current QTD %
Change
YTD % Change
Noninterest bearing demand
$
328,475
$
376,248
$
346,172
(12.7
)%
(5.1
)%
NOW
122,112
95,227
90,829
28.2
34.4
Money Market
825,599
818,408
887,352
0.9
(7.0
)
Savings
91,870
92,188
97,331
(0.3
)
(5.6
)
Time
1,294,319
1,291,451
1,315,073
0.2
(1.6
)
Total Deposits
$
2,662,375
$
2,673,522
$
2,736,757
(0.4
)%
(2.7
)%
Total deposits were $2.7 billion at June 30, 2024, a decrease of
$74.4 million, or 2.7%, when compared to December 31, 2023.
Brokered deposits have decreased $144.2 million, when compared to
December 31, 2023.
BANKWELL FINANCIAL GROUP, INC.
NONINTEREST EXPENSE (unaudited)
(Dollars in thousands)
For the Quarter Ended
Noninterest expense
June 30, 2024
March 31, 2024
June 30, 2023
June 24 vs. Mar 24 %
Change
Jun 24 vs. Jun 23 %
Change
Salaries and employee benefits
$
6,176
$
6,291
$
6,390
(1.8
)%
(3.3
)%
Occupancy and equipment
2,238
2,322
2,204
(3.6
)
1.5
Professional services
989
1,065
692
(7.1
)
42.9
Data processing
755
740
729
2.0
3.6
Director fees
306
900
453
(66.0
)
(32.5
)
FDIC insurance
705
930
1,050
(24.2
)
(32.9
)
Marketing
90
114
177
(21.1
)
(49.2
)
Other
986
935
946
5.5
4.2
Total noninterest expense
$
12,245
$
13,297
$
12,641
(7.9
)%
(3.1
)%
Noninterest expense decreased by $0.4 million to $12.2 million
for the quarter ended June 30, 2024 compared to the quarter ended
June 30, 2023. The decrease in noninterest expense was primarily
driven by a decrease in FDIC insurance costs, mainly driven by a
reduction in the Bank's brokered deposits.
For the Six Months
Ended
Noninterest expense
June 30, 2024
June 30, 2023
Jun 24 vs. Jun 23 %
Change
Salaries and employee benefits
$
12,467
$
12,471
—
%
Occupancy and equipment
4,561
4,288
6.4
Professional services
2,054
2,014
2.0
Data processing
1,495
1,400
6.8
Director fees
1,206
845
42.7
FDIC insurance
1,635
2,112
(22.6
)
Marketing
203
328
(38.1
)
Other
1,921
1,874
2.5
Total noninterest expense
$
25,542
$
25,332
0.8
%
Noninterest expense increased by $0.2 million to $25.5 million
for the six months ended June 30, 2024 compared to the six months
ended June 30, 2023. The increase in noninterest expense was
primarily driven by an increase in director fees related to timing
of compensation and accelerated vestings in connection with the
death of a director. The increase was partially offset by a
decrease in FDIC insurance costs, mainly attributable by a
reduction in the Bank's brokered deposits.
BANKWELL FINANCIAL GROUP, INC.
RECONCILIATION OF GAAP TO NON-GAAP
MEASURES (unaudited)
(Dollars in thousands, except share
data)
As of
Computation of Tangible Common Equity
to Tangible Assets
June 30, 2024
March 31, 2024
December 31,
2023
June 30, 2023
Total Equity
$
266,976
$
268,032
$
265,752
$
248,813
Less:
Goodwill
2,589
2,589
2,589
2,589
Other intangibles
—
—
—
—
Tangible Common Equity
$
264,387
$
265,443
$
263,163
$
246,224
Total Assets
$
3,141,654
$
3,155,274
$
3,215,482
$
3,252,707
Less:
Goodwill
2,589
2,589
2,589
2,589
Other intangibles
—
—
—
—
Tangible Assets
$
3,139,065
$
3,152,685
$
3,212,893
$
3,250,118
Tangible Common Equity to Tangible
Assets
8.42
%
8.42
%
8.19
%
7.58
%
As of
Computation of Fully Diluted Tangible
Book Value per Common Share
June 30, 2024
March 31, 2024
December 31, 2023
June 30, 2023
Total shareholders' equity
$
266,976
$
268,032
$
265,752
$
248,813
Less:
Preferred stock
—
—
—
—
Common shareholders' equity
$
266,976
$
268,032
$
265,752
$
248,813
Less:
Goodwill
2,589
2,589
2,589
2,589
Other intangibles
—
—
—
—
Tangible common shareholders'
equity
$
264,387
$
265,443
$
263,163
$
246,224
Common shares issued and outstanding
7,866,499
7,908,180
7,882,616
7,829,950
Fully Diluted Tangible Book Value per
Common Share
$
33.61
$
33.57
$
33.39
$
31.45
For the Quarter Ended
For the Six Months
Ended
Computation of PPNR
June 30, 2024
March 31, 2024
December 31, 2023
June 30, 2023
June 30, 2024
June 30, 2023
Income before income tax expense
$ 1,474
$ 5,082
$ 11,470
$ 10,172
$ 6,556
$ 23,722
Add:
Provision (credit) for credit losses
8,183
3,683
(960)
2,579
11,866
3,405
PPNR
$ 9,657
$ 8,765
$ 10,510
$ 12,751
$ 18,422
$ 27,127
PPNR return on average assets
1.22 %
1.10 %
1.27 %
1.58 %
1.16 %
1.69 %
BANKWELL FINANCIAL GROUP, INC.
EARNINGS PER SHARE ("EPS")
(unaudited)
(Dollars in thousands, except share
data)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
(In thousands, except per
share data)
Net income
$
1,118
$
7,983
$
4,881
$
18,362
Dividends to participating
securities(1)
(40
)
(41
)
(79
)
(84
)
Undistributed earnings allocated to
participating securities(1)
14
(172
)
(52
)
(403
)
Net income for earnings per share
calculation
$
1,092
$
7,770
$
4,750
$
17,875
Weighted average shares outstanding,
basic
7,748
7,593
7,706
7,574
Effect of dilutive equity-based
awards(2)
(24
)
8
16
66
Weighted average shares outstanding,
diluted
7,724
7,601
7,722
7,640
Net earnings per common share:
Basic earnings per common share
$
0.14
$
1.02
$
0.62
$
2.36
Diluted earnings per common share
$
0.14
$
1.02
$
0.62
$
2.34
(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.
NONINTEREST INCOME (unaudited)
(Dollars in thousands)
For the Quarter Ended
Noninterest income
June 30, 2024
March 31, 2024
June 30, 2023
Jun 24 vs. Mar 24 %
Change
Jun 24 vs. Jun 23 %
Change
Bank owned life insurance
$
333
$
329
$
292
1.2
%
14.0
%
Service charges and fees
495
304
361
62.8
37.1
Gains and fees from sales of loans
45
321
725
(86.0
)
(93.8
)
Other
(190
)
(39
)
23
Unfavorable
Unfavorable
Total noninterest income
$
683
$
915
$
1,401
(25.4
)%
(51.2
)%
Noninterest income decreased $0.7 million for the quarter ended
June 30, 2024 compared to the quarter ended June 30, 2023. The
decrease in noninterest income was driven by lower gains as a
result of fewer SBA loan sales for the quarter ended June 30,
2024.
For the Six Months
Ended
Noninterest income
June 30, 2024
June 30, 2023
Jun 24 vs. Jun 23 %
Change
Bank owned life insurance
$
662
$
573
15.5
%
Service charges and fees
799
647
23.5
%
Gains and fees from sales of loans
366
1,656
(77.9
)%
Other
(229
)
51
Unfavorable
Total noninterest income
$
1,598
$
2,927
(45.4
)%
Noninterest income decreased $1.3 million for the six months
ended June 30, 2024 compared to the six months ended June 30, 2023.
The decrease in noninterest income was driven by lower gains as a
result of fewer SBA loan sales for the six months ended June 30,
2024.
BANKWELL FINANCIAL GROUP, INC.
NET INTEREST MARGIN ANALYSIS ON A FULLY
TAX EQUIVALENT BASIS - QTD (unaudited)
(Dollars in thousands)
For the Quarter Ended
June 30, 2024
June 30, 2023
Average Balance
Interest
Yield/ Rate (4)
Average Balance
Interest
Yield/ Rate (4)
Assets:
Cash and Fed funds sold
$
273,301
$
3,429
5.05
%
$
227,777
$
3,023
5.32
%
Securities(1)
137,360
1,139
3.32
128,576
955
2.97
Loans:
Commercial real estate
1,901,189
27,654
5.75
1,935,058
27,099
5.54
Residential real estate
49,046
772
6.30
56,981
643
4.51
Construction
159,184
2,871
7.14
206,844
3,691
7.06
Commercial business
523,382
11,028
8.34
557,482
10,646
7.55
Consumer
42,335
735
6.98
29,326
500
6.84
Total loans
2,675,136
43,060
6.37
2,785,691
42,579
6.05
Federal Home Loan Bank stock
5,655
118
8.42
5,610
98
7.00
Total earning assets
3,091,452
$
47,746
6.11
%
3,147,654
$
46,655
5.86
%
Other assets
95,453
96,603
Total assets
$
3,186,905
$
3,244,257
Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW
$
107,310
$
49
0.18
%
$
98,048
$
42
0.18
%
Money market
833,489
8,552
4.13
902,225
8,083
3.59
Savings
90,987
688
3.04
112,585
860
3.06
Time
1,291,595
15,388
4.79
1,298,170
11,792
3.64
Total interest bearing deposits
2,323,381
24,677
4.27
2,411,028
20,777
3.46
Borrowed Money
159,288
1,783
4.43
163,138
1,738
4.21
Total interest bearing liabilities
2,482,669
$
26,460
4.29
%
2,574,166
$
22,515
3.51
%
Noninterest bearing deposits
368,516
375,514
Other liabilities
63,177
46,565
Total liabilities
2,914,362
2,996,245
Shareholders' equity
272,543
248,012
Total liabilities and shareholders'
equity
$
3,186,905
$
3,244,257
Net interest income(2)
$
21,286
$
24,140
Interest rate spread
1.82
%
2.36
%
Net interest margin(3)
2.75
%
3.07
%
(1)
Average balances and yields for
securities are based on amortized cost.
(2)
The adjustment for securities and
loans taxable equivalency amounted to $67 thousand and $51 thousand
for the quarters ended June 30, 2024 and 2023, 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 Six Months
Ended
June 30, 2024
June 30, 2023
Average Balance
Interest
Yield/ Rate (4)
Average Balance
Interest
Yield/ Rate (4)
Assets:
Cash and Fed funds sold
$
282,981
$
7,255
5.16
%
$
271,328
$
6,590
4.90
%
Securities(1)
136,049
2,199
3.23
129,225
1,912
2.96
Loans:
Commercial real estate
1,911,896
56,295
5.82
1,926,852
52,125
5.38
Residential real estate
49,624
1,490
6.01
58,207
1,286
4.42
Construction
160,080
5,844
7.22
186,684
6,651
7.09
Commercial business
520,188
21,314
8.10
549,963
21,394
7.74
Consumer
41,150
1,442
7.05
23,971
749
6.30
Total loans
2,682,938
86,385
6.37
2,745,677
82,205
5.95
Federal Home Loan Bank stock
5,678
239
8.44
5,442
193
7.14
Total earning assets
3,107,646
$
96,078
6.12
%
3,151,672
$
90,900
5.74
%
Other assets
93,179
90,427
Total assets
$
3,200,825
$
3,242,099
Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW
$
99,493
$
88
0.18
%
$
95,494
$
81
0.17
%
Money market
858,670
17,698
4.14
905,021
14,468
3.22
Savings
91,979
1,402
3.06
124,387
1,586
2.57
Time
1,304,332
30,851
4.76
1,275,417
21,675
3.43
Total interest bearing deposits
2,354,474
50,039
4.27
2,400,319
37,810
3.18
Borrowed Money
159,257
3,555
4.42
162,215
3,454
4.24
Total interest bearing liabilities
2,513,731
$
53,594
4.29
%
2,562,534
$
41,264
3.25
%
Noninterest bearing deposits
352,768
389,608
Other liabilities
62,775
45,494
Total liabilities
2,929,274
2,997,636
Shareholders' equity
271,551
244,463
Total liabilities and shareholders'
equity
$
3,200,825
$
3,242,099
Net interest income(2)
$
42,484
$
49,636
Interest rate spread
1.83
%
2.49
%
Net interest margin(3)
2.73
%
3.15
%
(1)
Average balances and yields for
securities are based on amortized cost.
(2)
The adjustment for securities and
loans taxable equivalency amounted to $118 thousand and $102
thousand for the six months ended June 30, 2024 and 2023,
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/20240724575735/en/
Christopher R. Gruseke President and Chief Executive Officer
(203) 652-0166 or Courtney E. Sacchetti Executive Vice President
and Chief Financial Officer of Bankwell Financial Group (203)
652-0166
Bankwell Financial (NASDAQ:BWFG)
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