Bankwell Financial Group, Inc. (NASDAQ: BWFG), a leading
commercial bank with a growing digital focus, reported GAAP net
income of $1.9 million, or $0.24 per share for the third quarter of
2024, versus $1.1 million, or $0.14 per share, for the second
quarter of 2024. The Company's Board of Directors declared a $0.20
per share cash dividend, payable November 22, 2024 to shareholders
of record on November 11, 2024.
Third quarter of 2024 results include an $8.2 million previously
disclosed charge-off taken against a $13.7 million office loan
participation as a $0.79 drag to earnings per share. Pre-tax,
pre-provision net revenue (PPNR) of $9.0 million, or $1.17 per
share, fell 7% relative to the second quarter of 2024 at $9.7
million, or $1.25 per share.
On October 28, 2024, the Company announced that on October 23,
2024, its Board of Directors authorized a new share repurchase
plan. Under the terms of the share repurchase plan, the Company is
authorized to buy back up to 250,000 shares of its outstanding
common stock. In connection with the authorization of the new plan,
the Company terminated its existing plan, originally approved in
2018 and amended in 2021, pursuant to which the Company has
purchased 532,802 shares of its common stock.
Discussion of Outlook; Bankwell Financial Group President and
CEO, Christopher R. Gruseke:
"Although we were disappointed with the elevated charge-off in
the third quarter, the Company’s go-forward outlook remains
favorable. Our liability sensitive balance sheet leaves us well
positioned for accelerating margin expansion in the coming
quarters, and we believe that strategic investments in our
commercial lending platform will help us diversify our assets and
improve our profitability."
Key Points for Third Quarter and Bankwell’s
Outlook
Brokered Deposits Decrease, Liability Sensitive Balance
Sheet.
- Brokered deposits declined $24.2 million in the third quarter
of 2024 and are down $168.5 million since December 31, 2023.
- Reported net interest margin was 2.72%, which included a -6
basis point impact as a result of charges associated with a single
non-performing loan and fees associated with called brokered
CDs.
- With $1.3 billion of time deposits maturing in the next 12
months at a weighted average rate of 4.89%, the Company anticipates
an annualized reduction in funding costs by $3.35 million, given
current pricing. This translates into approximately $0.33
incremental EPS, or approximately 11 basis points on net interest
margin, given no further changes to Fed Funds and stable asset
yields.
- Further, the Company anticipates $0.5 billion of loans to
reprice or mature over the same period, which could further benefit
net interest margin by an additional 15 to 20 basis points on an
annualized basis.
NPL to be Sold, Residential Care Upgrades a Positive
Sign.
- A $27.1 million multifamily commercial real estate loan was
placed on nonperforming status as of September 30, 2024. As of
October 28, 2024, the Company has a signed agreement for the sale
of this loan at par value. As of September 30, 2024, this loan
comprises 103 basis points of the 2.50% nonperforming loans as a
percentage of total loans.
- Elsewhere, favorable macroeconomic trends were reflected in
improved operating results among the Company's residential care
borrowers. Specifically, during the quarter four relationships
totaling $42 million were upgraded. The Company anticipates the
positive trend to continue as both Medicaid reimbursement rates and
operational costs normalize.
Ongoing Investments with Continued Focus on
Efficiency.
- The Company continues to invest for future growth, with notable
recent developments including a lending partnership with Lendio,
the launch of Bankwell Direct, the launch of a new Small Business
Administration (SBA) division, and hiring key leadership
personnel.
- The Company continues to operate efficiently with a
non-interest expense to average asset ratio of 1.62% for the
quarter ended September 30, 2024.
Third Quarter 2024 Financial Highlights and Key Performance
Indicators (KPIs):
September 30,
2024
June 30, 2024
March 31, 2024
December 31,
2023
September 30,
2023
Return on average assets(1)
0.24
%
0.14
%
0.47
%
1.03
%
1.19
%
Pre-tax, pre-provision net revenue return
on average assets(1)
1.13
%
1.22
%
1.10
%
1.27
%
1.37
%
Return on average shareholders'
equity(1)
2.83
%
1.65
%
5.59
%
12.82
%
15.19
%
Net interest margin(1)
2.72
%
2.75
%
2.71
%
2.81
%
2.85
%
Efficiency Ratio(1)(2)
58.8
%
55.9
%
60.3
%
55.0
%
52.0
%
Noninterest expense to average
assets(1)
1.62
%
1.55
%
1.66
%
1.56
%
1.48
%
Net loan charge-offs as % of average
loans(1)
0.56
%
0.01
%
0.11
%
0.01
%
—
%
Dividend payout(1)(3)
82.30
%
142.86
%
41.67
%
18.35
%
16.00
%
Fully diluted tangible book value per
common share(1)
$
33.76
$
33.61
$
33.57
$
33.39
$
32.55
Total capital to risk-weighted
assets(1)(4)
12.83
%
12.98
%
12.63
%
12.32
%
11.86
%
Total common equity tier 1 capital to
risk-weighted assets(1)(4)
11.80
%
11.73
%
11.60
%
11.30
%
10.82
%
Tier I Capital to Average Assets(1)(4)
10.24
%
10.17
%
10.09
%
9.81
%
9.60
%
Tangible common equity to tangible
assets(1)
8.40
%
8.42
%
8.42
%
8.19
%
7.86
%
Earnings per common share - diluted
$
0.24
$
0.14
$
0.48
$
1.09
$
1.25
Common shares issued and outstanding
7,858,573
7,866,499
7,908,180
7,882,616
7,841,616
(1)
Non-GAAP Financial Measure, refer
to the "Non-GAAP Financial Measures" and the "Reconciliation of
GAAP to Non-GAAP Measures" sections of this document for additional
detail.
(2)
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.
(3)
The dividend payout ratio is
calculated by dividing dividends per share by earnings per
share.
(4)
Represents Bank ratios. Current
period capital ratios are preliminary subject to finalization of
the FDIC Call Report.
Pre-Tax, Pre-Provision Net Revenue(1) ("PPNR")
PPNR for the three and nine months ended September 30, 2024,
were $9.0 million and $27.4 million, respectively, a decrease of
20.1% and 28.6%, respectively, from the $11.3 million and $38.4
million recognized in the three and nine months ended September 30,
2023, respectively.
For the Quarter Ended
For the Nine Months
Ended
(Dollars in thousands)
September 30,
2024
June 30, 2024
March 31, 2024
December 31,
2023
September 30,
2023
September 30,
2024
September 30,
2023
Net interest income
$
20,717
$
21,219
$
21,147
$
22,245
$
22,691
$
63,083
$
72,223
Total noninterest income
1,156
683
915
1,129
786
2,754
3,713
Total revenues
21,873
21,902
22,062
23,374
23,477
65,837
75,936
Total noninterest expense
12,865
12,245
13,297
12,864
12,205
38,407
37,537
PPNR
$
9,008
$
9,657
$
8,765
$
10,510
$
11,272
$
27,430
$
38,399
(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, 2024 were $21.9 million, versus $23.5
million for the quarter ended September 30, 2023. The decrease in
revenues for the quarter ended September 30, 2024 was attributable
to an increase in interest expense on deposits. Revenues for the
nine months ended September 30, 2024 were $65.8 million, versus
$75.9 million for the nine months ended September 30, 2023. The
decrease in revenues for the quarter ended September 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 due to higher loan yields and prepayment
fees.
- The net interest margin (fully taxable equivalent basis) for
the quarters ended September 30, 2024 and September 30, 2023 was
2.72% and 2.85%, 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. For the quarter
ended September 30, 2024, the net interest margin includes a -5
basis point unfavorable impact as a result of the $27.1 million
commercial real estate loan being placed on non-performing status
plus a -1 basis point unfavorable impact from one-time costs
associated with Brokered CDs called during the quarter.
- Overall non-interest income of $1.2 million increased 69.3%
when compared to the second quarter, primarily due to higher gains
as a result of more SBA loan sales. Service charges increased when
compared to the second quarter and continues to grow on a positive
trend line.
- Total non-interest expense of $12.9 million increased 5%
compared to the second quarter as the Company continues to invest
in strategic initiatives.
Allowance for Credit Losses - Loans ("ACL-Loans")
The ACL-Loans was $27.8 million as of September 30, 2024
compared to $27.9 million as of December 31, 2023. The ACL-Loans as
a percentage of total loans was 1.06% as of September 30, 2024
compared to 1.03% as of December 31, 2023.
Provision for credit losses was $6.3 million for the quarter
ended September 30, 2024. The increase in the provision for credit
losses for the quarter was primarily due to a charge-off of $8.2
million which previously did not have an associated specific
reserve. The increase was partially offset by a $1.0 million
recovery on a previously charged-off loan.
Total nonaccrual loans increased $9.3 million to $65.5 million
as of September 30, 2024 when compared to the previous quarter. The
increase was primarily due to a $27.1 million commercial real
estate multifamily loan1. The increase was partially offset by two
loans that were partially charged-off for a total of $15.4 million
and two loans that were paid off totaling $4.7 million in the third
quarter of 2024. Nonperforming assets as a percentage of total
assets increased to 2.07% at September 30, 2024 from 1.53% at
December 31, 2023.
- As of October 28, 2024, the Company has a signed agreement for
the sale of this loan at par value.
BANKWELL FINANCIAL GROUP, INC.
ASSET QUALITY (unaudited) (Dollars in thousands)
For the Quarter Ended
September 30,
2024
June 30, 2024
March 31, 2024
December 31,
2023
September 30, 2023
ACL-Loans:
Balance at beginning of period
$
36,083
$
27,991
$
27,946
$
29,284
$
30,694
Charge-offs:
Residential real estate
—
(9
)
(132
)
—
—
Commercial real estate
(8,184
)
(522
)
(3,306
)
(824
)
—
Commercial business
(7,010
)
—
(197
)
—
—
Consumer
(17
)
(12
)
(49
)
(15
)
(31
)
Construction
(616
)
—
—
—
—
Total charge-offs
(15,827
)
(543
)
(3,684
)
(839
)
(31
)
Recoveries:
Residential real estate
—
141
—
—
—
Commercial real estate
1,013
113
—
—
—
Commercial business
(34
)
—
27
464
35
Consumer
1
13
4
3
19
Construction
—
—
—
—
—
Total recoveries
980
267
31
467
54
Net loan (charge-offs) recoveries
(14,847
)
(276
)
(3,653
)
(372
)
23
Provision (credit) for credit losses -
loans
6,516
8,368
3,698
(966
)
(1,433
)
Balance at end of period
$
27,752
$
36,083
$
27,991
$
27,946
$
29,284
As of
September 30,
2024
June 30, 2024
March 31, 2024
December 31,
2023
September 30, 2023
Asset quality:
Nonaccrual loans
Residential real estate
$
1,316
$
1,339
$
1,237
$
1,386
$
1,408
Commercial real estate
46,360
28,088
19,083
23,009
1,898
Commercial business
9,101
17,396
16,841
15,430
7,352
Construction
8,766
9,382
9,382
9,382
9,382
Consumer
—
—
—
—
7,917
Total nonaccrual loans
65,543
56,205
46,543
49,207
27,957
Other real estate owned
—
—
—
—
—
Total nonperforming assets
$
65,543
$
56,205
$
46,543
$
49,207
$
27,957
Nonperforming loans as a % of total
loans
2.50
%
2.12
%
1.74
%
1.81
%
1.01
%
Nonperforming assets as a % of total
assets
2.07
%
1.79
%
1.48
%
1.53
%
0.86
%
ACL-loans as a % of total loans
1.06
%
1.36
%
1.04
%
1.03
%
1.06
%
ACL-loans as a % of nonperforming
loans
42.34
%
64.20
%
60.14
%
56.79
%
104.75
%
Total past due loans to total loans
2.48
%
0.84
%
1.44
%
0.78
%
1.44
%
Financial Condition & Capital
Assets totaled $3.2 billion at September 30, 2024, a decrease of
$54.4 million, or 1.7% compared to December 31, 2023. Gross loans
totaled $2.6 billion at September 30, 2024, a decrease of $95.4
million, or 3.5% compared to December 31, 2023. Deposits totaled
$2.7 billion at September 30, 2024, a decrease of $48.6 million, or
1.8% compared to December 31, 2023. Brokered deposits have
decreased $168.5 million or 17.7%, when compared to December 31,
2023
Period End Loan Composition
September 30,
2024
June 30, 2024
December 31, 2023
Current QTD %
Change
YTD % Change
Residential Real Estate
$
45,553
$
47,875
$
50,931
(4.9
)%
(10.6
)%
Commercial Real Estate(1)
1,887,942
1,912,701
1,947,648
(1.3
)
(3.1
)
Construction
160,292
150,259
183,414
6.7
(12.6
)
Total Real Estate Loans
2,093,787
2,110,835
2,181,993
(0.8
)
(4.0
)
Commercial Business
490,292
503,444
500,569
(2.6
)
(2.1
)
Consumer
39,126
42,906
36,045
(8.8
)
8.5
Total Loans
$
2,623,205
$
2,657,185
$
2,718,607
(1.3
)%
(3.5
)%
(1) Includes owner occupied commercial
real estate of $0.7 billion at September 30, 2024, June 30, 2024,
and December 31, 2023, respectively.
Period End Deposit Composition
September 30,
2024
June 30, 2024
December 31, 2023
Current QTD %
Change
YTD % Change
Noninterest bearing demand
$
295,552
$
328,475
$
346,172
(10.0
)%
(14.6
)%
NOW
76,413
122,112
90,829
(37.4
)
(15.9
)
Money Market
840,234
825,599
887,352
1.8
(5.3
)
Savings
87,212
91,870
97,331
(5.1
)
(10.4
)
Time
1,388,760
1,294,319
1,315,073
7.3
5.6
Total Deposits
$
2,688,171
$
2,662,375
$
2,736,757
1.0
%
(1.8
)%
Shareholders’ equity totaled $267.9 million as of September 30,
2024, an increase of $2.2 million compared to December 31, 2023,
primarily a result of net income of $6.8 million for the nine
months ended September 30, 2024. The increase was partially offset
by dividends paid of $4.7 million.
The Company's capital position was generally stable during the
third quarter, with total risk-based capital, common-equity tier 1
capital and leverage ratios at 12.83%, 11.80%, and 10.24%,
respectively, at September 30, 2024. The Company repurchased 9,670
shares and 85,990 shares at weighted average prices of $23.86 and
$24.82 per share for the quarter and nine months ended September
30, 2024.
We recommend reading this earnings release in conjunction
with the Third Quarter 2024 Investor Presentation, located at
http://investor.mybankwell.com/Presentations and included as an
exhibit to our October 28, 2024 Current Report on Form 8-K.
Conference Call
Bankwell will host a conference call to discuss the Company’s
financial results and business outlook on October 29, 2024, at
10:00 a.m. E.T. The call will be accessible by telephone and
webcast using
https://investor.mybankwell.com/news-market-data/event-calendar/default.aspx.
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”). Bankwell is a full-service Commercial
Bank, established in 2013. Headquartered in New Canaan, CT,
Bankwell serves customers nationwide, delivering unmatched
accessibility, expertise, and responsiveness. Bankwell offers an
array of commercial financing products, including Working Capital
lines of credit, SBA loans, Acquisition loans, and Commercial
mortgages, in addition to digital and physical treasury management
and deposit services.
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 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,
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, 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,
2024
June 30, 2024
March 31, 2024
December 31,
2023
September 30,
2023
ASSETS
Cash and due from banks
$
275,829
$
234,277
$
245,043
$
267,521
$
256,973
Federal funds sold
15,508
17,103
2,584
1,636
1,122
Cash and cash equivalents
291,337
251,380
247,627
269,157
258,095
Investment securities
Marketable equity securities, at fair
value
2,148
2,079
2,069
2,070
1,975
Available for sale investment securities,
at fair value
108,866
107,635
108,417
109,736
97,907
Held to maturity investment securities, at
amortized cost
34,886
28,286
15,739
15,817
15,885
Total investment securities
145,900
138,000
126,225
127,623
115,767
Loans receivable (net of ACL-Loans of
$27,752, $36,083, $27,991, $27,946, and $29,284 at September 30,
2024, June 30, 2024, March 31, 2024, December 31, 2023, and
September 30, 2023, respectively)
2,591,551
2,616,691
2,646,686
2,685,301
2,735,242
Accrued interest receivable
14,714
14,675
15,104
14,863
15,648
Federal Home Loan Bank stock, at cost
5,655
5,655
5,655
5,696
5,696
Premises and equipment, net
24,780
25,599
26,161
27,018
26,899
Bank-owned life insurance
52,443
52,097
51,764
51,435
51,119
Goodwill
2,589
2,589
2,589
2,589
2,589
Deferred income taxes, net
9,300
11,345
9,137
9,383
9,395
Other assets
22,811
23,623
24,326
22,417
29,326
Total assets
$
3,161,080
$
3,141,654
$
3,155,274
$
3,215,482
$
3,249,776
LIABILITIES AND SHAREHOLDERS’
EQUITY
Liabilities
Deposits
Noninterest bearing deposits
$
293,195
$
328,475
$
376,248
$
346,172
$
345,433
Interest bearing deposits
2,394,976
2,333,900
2,297,274
2,390,585
2,423,193
Total deposits
2,688,171
2,662,375
2,673,522
2,736,757
2,768,626
Advances from the Federal Home Loan
Bank
90,000
90,000
90,000
90,000
90,000
Subordinated debentures
69,389
69,328
69,266
69,205
69,143
Accrued expenses and other liabilities
45,594
52,975
54,454
53,768
64,145
Total liabilities
2,893,154
2,874,678
2,887,242
2,949,730
2,991,914
Shareholders’ equity
Common stock, no par value
118,429
118,037
118,401
118,247
117,181
Retained earnings
151,257
150,895
151,350
149,169
142,205
Accumulated other comprehensive (loss)
(1,760
)
(1,956
)
(1,719
)
(1,664
)
(1,524
)
Total shareholders’ equity
267,926
266,976
268,032
265,752
257,862
Total liabilities and shareholders’
equity
$
3,161,080
$
3,141,654
$
3,155,274
$
3,215,482
$
3,249,776
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,
2024
June 30, 2024
March 31, 2024
December 31,
2023
September 30,
2023
September 30,
2024
September 30,
2023
Interest and dividend income
Interest and fees on loans
$
43,596
$
43,060
$
43,325
$
44,122
$
43,854
$
129,981
$
126,059
Interest and dividends on securities
1,390
1,190
1,130
1,108
1,016
3,710
3,018
Interest on cash and cash equivalents
3,205
3,429
3,826
4,164
3,393
10,460
9,983
Total interest and dividend income
48,191
47,679
48,281
49,394
48,263
144,151
139,060
Interest expense
Interest expense on deposits
25,579
24,677
25,362
25,307
23,789
75,618
61,599
Interest expense on borrowings
1,895
1,783
1,772
1,842
1,783
5,450
5,238
Total interest expense
27,474
26,460
27,134
27,149
25,572
81,068
66,837
Net interest income
20,717
21,219
21,147
22,245
22,691
63,083
72,223
Provision (credit) for credit
losses
6,296
8,183
3,683
(960
)
(1,579
)
18,162
1,826
Net interest income after provision
(credit) for credit losses
14,421
13,036
17,464
23,205
24,270
44,921
70,397
Noninterest income
Bank owned life insurance
346
333
329
316
303
1,008
876
Service charges and fees
575
495
304
688
294
1,374
941
Gains and fees from sales of loans
133
45
321
79
237
499
1,893
Other
102
(190
)
(39
)
46
(48
)
(127
)
3
Total noninterest income
1,156
683
915
1,129
786
2,754
3,713
Noninterest expense
Salaries and employee benefits
6,223
6,176
6,291
6,088
6,036
18,690
18,507
Occupancy and equipment
2,334
2,238
2,322
2,231
2,146
6,894
6,434
Professional services
1,142
989
1,065
1,033
491
3,196
2,505
Data processing
851
755
740
747
741
2,346
2,141
Director fees
292
306
900
605
362
1,498
1,207
FDIC insurance
853
705
930
1,026
1,026
2,488
3,138
Marketing
73
90
114
139
184
277
512
Other
1,097
986
935
995
1,219
3,018
3,093
Total noninterest expense
12,865
12,245
13,297
12,864
12,205
38,407
37,537
Income before income tax
expense
2,712
1,474
5,082
11,470
12,851
9,268
36,573
Income tax expense
786
356
1,319
2,946
3,074
2,461
8,434
Net income
$
1,926
$
1,118
$
3,763
$
8,524
$
9,777
$
6,807
$
28,139
Earnings Per Common Share:
Basic
$
0.24
$
0.14
$
0.48
$
1.09
$
1.25
$
0.86
$
3.61
Diluted
$
0.24
$
0.14
$
0.48
$
1.09
$
1.25
$
0.86
$
3.58
Weighted Average Common Shares
Outstanding:
Basic
7,715,040
7,747,675
7,663,521
7,603,938
7,598,230
7,708,768
7,582,272
Diluted
7,720,895
7,723,888
7,687,679
7,650,451
7,633,934
7,731,454
7,646,837
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,
2024
June 30, 2024
March 31, 2024
December 31,
2023
September 30,
2023
Total Equity
$
267,926
$
266,976
$
268,032
$
265,752
$
257,862
Less:
Goodwill
2,589
2,589
2,589
2,589
2,589
Other intangibles
—
—
—
—
—
Tangible Common Equity
$
265,337
$
264,387
$
265,443
$
263,163
$
255,273
Total Assets
$
3,161,080
$
3,141,654
$
3,155,274
$
3,215,482
$
3,249,776
Less:
Goodwill
2,589
2,589
2,589
2,589
2,589
Other intangibles
—
—
—
—
—
Tangible Assets
$
3,158,491
$
3,139,065
$
3,152,685
$
3,212,893
$
3,247,187
Tangible Common Equity to Tangible
Assets
8.40
%
8.42
%
8.42
%
8.19
%
7.86
%
As of
Computation of Fully Diluted Tangible
Book Value per Common Share
September 30,
2024
June 30, 2024
March 31, 2024
December 31, 2023
September 30,
2023
Total shareholders' equity
$
267,926
$
266,976
$
268,032
$
265,752
$
257,862
Less:
Preferred stock
—
—
—
—
—
Common shareholders' equity
$
267,926
$
266,976
$
268,032
$
265,752
$
257,862
Less:
Goodwill
2,589
2,589
2,589
2,589
2,589
Other intangibles
—
—
—
—
—
Tangible common shareholders'
equity
$
265,337
$
264,387
$
265,443
$
263,163
$
255,273
Common shares issued and outstanding
7,858,573
7,866,499
7,908,180
7,882,616
7,841,616
Fully Diluted Tangible Book Value per
Common Share
$
33.76
$
33.61
$
33.57
$
33.39
$
32.55
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, 2024
September 30, 2023
Average Balance
Interest
Yield/ Rate (4)
Average Balance
Interest
Yield/ Rate (4)
Assets:
Cash and Fed funds sold
$
253,664
$
3,205
5.03
%
$
265,115
$
3,393
5.08
%
Securities(1)
147,431
1,390
3.78
127,229
953
3.00
Loans:
Commercial real estate
1,905,506
28,288
5.81
1,943,725
28,140
5.67
Residential real estate
47,481
736
6.20
53,966
671
4.97
Construction
156,273
3,070
7.69
209,154
3,908
7.31
Commercial business
512,507
10,783
8.23
539,185
10,394
7.54
Consumer
41,845
719
6.84
44,020
741
6.66
Total loans
2,663,612
43,596
6.40
2,790,050
43,854
6.15
Federal Home Loan Bank stock
5,655
122
8.32
5,696
115
8.13
Total earning assets
3,070,362
$
48,313
6.16
%
3,188,090
$
48,315
5.93
%
Other assets
90,410
78,089
Total assets
$
3,160,772
$
3,266,179
Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW
$
94,958
$
45
0.18
%
$
102,149
$
47
0.18
%
Money market
832,430
8,597
4.11
922,036
9,064
3.90
Savings
89,463
691
3.07
105,366
817
3.08
Time
1,347,857
16,246
4.79
1,322,074
13,861
4.16
Total interest bearing deposits
2,364,708
25,579
4.30
2,451,625
23,789
3.85
Borrowed Money
159,349
1,895
4.73
159,103
1,783
4.39
Total interest bearing liabilities
2,524,057
$
27,474
4.33
%
2,610,728
$
25,572
3.89
%
Noninterest bearing deposits
303,213
345,988
Other liabilities
62,602
54,136
Total liabilities
2,889,872
3,010,852
Shareholders' equity
270,900
255,327
Total liabilities and shareholders'
equity
$
3,160,772
$
3,266,179
Net interest income(2)
$
20,839
$
22,743
Interest rate spread
1.83
%
2.04
%
Net interest margin(3)
2.72
%
2.85
%
(1)
Average balances and yields for securities
are based on amortized cost.
(2)
The adjustment for securities and loans
taxable equivalency amounted to $122 thousand and $52 thousand for
the quarters ended September 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 Nine Months
Ended
September 30, 2024
September 30, 2023
Average Balance
Interest
Yield/ Rate (4)
Average Balance
Interest
Yield/ Rate (4)
Assets:
Cash and Fed funds sold
$
273,138
$
10,460
5.12
%
$
281,033
$
9,983
4.75
%
Securities(1)
139,871
3,592
3.42
128,554
2,864
2.97
Loans:
Commercial real estate
1,909,390
84,582
5.82
1,932,549
79,958
5.46
Residential real estate
48,912
2,226
6.07
56,798
1,957
4.59
Construction
158,884
8,913
7.37
194,396
10,582
7.18
Commercial business
517,880
32,097
8.14
546,329
32,073
7.74
Consumer
41,383
2,162
6.98
30,571
1,489
6.51
Total loans
2,676,449
129,980
6.38
2,760,643
126,059
6.02
Federal Home Loan Bank stock
5,670
358
8.43
5,527
308
7.46
Total earning assets
3,095,128
$
144,390
6.13
%
3,175,757
$
139,214
5.78
%
Other assets
92,249
66,342
Total assets
$
3,187,377
$
3,242,099
Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW
$
97,970
$
133
0.18
%
$
97,741
$
127
0.17
%
Money market
849,860
26,294
4.13
910,840
23,532
3.45
Savings
91,135
2,093
3.07
117,984
2,404
2.72
Time
1,319,031
47,097
4.77
1,291,124
35,536
3.68
Total interest bearing deposits
2,357,996
75,617
4.28
2,417,689
61,599
3.41
Borrowed Money
159,288
5,450
4.57
161,166
5,238
4.29
Total interest bearing liabilities
2,517,284
$
81,067
4.30
%
2,578,855
$
66,837
3.47
%
Noninterest bearing deposits
336,129
374,943
Other liabilities
62,631
40,192
Total liabilities
2,916,044
2,993,990
Shareholders' equity
271,333
248,109
Total liabilities and shareholders'
equity
$
3,187,377
$
3,242,099
Net interest income(2)
$
63,323
$
72,377
Interest rate spread
1.83
%
2.31
%
Net interest margin(3)
2.73
%
3.04
%
(1)
Average balances and yields for securities
are based on amortized cost.
(2)
The adjustment for securities and loans
taxable equivalency amounted to $240 thousand and $154 thousand for
the nine months ended September 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/20241028117073/en/
Christopher R. Gruseke, President and Chief Executive Officer or
Courtney E. Sacchetti, Executive Vice President and Chief Financial
Officer Bankwell Financial Group (203) 652-0166
ir@mybankwell.com
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