Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net
income of $2.5 million, or $0.32 per share for the fourth quarter
of 2024, versus $1.9 million, or $0.24 per share, for the third
quarter of 2024. The Company's Board of Directors declared a $0.20
per share cash dividend, payable February 21, 2025 to shareholders
of record on February 11, 2025.
Pre-tax, pre-provision net revenue (PPNR) of $7.9 million, or
$1.02 per share, fell 12% relative to the third quarter of 2024 of
$9.0 million, or $1.17 per share.
Discussion of Outlook; Bankwell Financial Group Chief
Executive Officer, Christopher R. Gruseke:
"Results for the fourth quarter of 2024 include $3.0 million in
charge-offs. The main components of these charge offs are discussed
in this earnings release as well as in our Investor Presentation.
As of January 22, 2025, however, the Company has executed purchase
and sale agreements on two nonperforming assets, totaling $35.4
million. These sales will reduce the reported nonperforming assets
as a percentage of total assets of 1.88% reported as of December
31, 2024 by 108 basis points upon final disposition early in the
first quarter with no further impact to the Company’s financial
results. We look forward to further reductions in nonperforming
assets in the quarters ahead. We have also made significant
progress in reducing CRE exposure. The Company’s CRE concentration
as a percentage of total risked based capital stood at 375% at
year-end 2024 versus 397% at year-end 2023, and 425% at year-end
2022.
Regarding our liability sensitive balance sheet, $1.3 billion of
time deposits are due to re-price at lower rates in the next 12
months. These deposits alone will contribute approximately $4.4
million on an annualized basis to net interest income. This
repricing assumes no further actions by the Fed. With approximately
$500 million in loans maturing in the year ahead, net interest
margin could further benefit by an additional 15-20 basis points on
an annualized basis.
After investing in robust infrastructure and risk management in
2024, the Company’s new SBA lending division has begun to originate
loans in the first quarter of 2025. Given stable market conditions,
we expect material growth in noninterest income attributable to
future gains on sale of the guaranteed portions of the new SBA
loans.
Given the above, we are guiding to $93-$95 million in net
interest income and $7-$8 million in noninterest income, as well as
a $56-$57 million spend in noninterest expense for the full year
2025.
On behalf of the Company’s Board of Directors, I’d also like to
congratulate Matt McNeill on his promotion to President of Bankwell
Financial Group and its wholly owned subsidiary, Bankwell Bank. We
salute Matt for a job well done."
Key Points for Fourth Quarter and Bankwell’s
Outlook
Brokered Deposits Decrease, Liability Sensitive Balance
Sheet.
- Brokered deposits declined $78.4 million in the fourth quarter
of 2024 and have decreased by $246.8 million since December 31,
2023.
- Reported net interest margin was 2.60%, down 12 basis points
from the third quarter of 2024, primarily due to lower loan fees
and elevated cash balances. Total deposit costs of 3.72% declined 9
basis points from the third quarter of 2024.
- With $1.3 billion of time deposits maturing in the next 12
months at a weighted average rate of 4.79%, the Company anticipates
an annualized reduction in funding costs of $4.4 million, given
current market pricing. This translates into approximately $0.44 of
incremental EPS, or approximately 14 basis points of increase to
the net interest margin, assuming no further changes to Fed Funds
and stable asset yields.
- 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.
Credit Trends Stable, Material Improvement Expected in Early
2025.
- The Company disposed of a previously disclosed non-performing
C&I loan (pediatric dental practice), recognizing a $0.7
million charge off and reducing non-performing loan balances by
$1.7 million during the quarter.
- The Company took possession of the collateral securing a
non-performing construction loan, creating a $8.3 million Other
Real Estate Owned (“OREO”) asset. The Company recorded a $1.2
million charge off and incurred $0.7 million in OREO expenses
during the quarter. Subsequent to December 31, 2024, the Company
executed an agreement to sell the property at book value.
- During the third quarter of 2024, a $27.1 million multifamily
commercial real estate loan was put on nonperforming status.
Subsequent to December 31, 2024, the Company executed a signed
purchase agreement for the sale of this loan at par value. As of
December 31, 2024, this loan comprised 83 basis points of the 1.88%
nonperforming assets as a percentage of total assets.
Ongoing Investments with Continued Focus on
Efficiency.
- The Company launched an SBA Lending division, which began
originating loans in December of 2024.
- The Company continues to grow Bankwell Direct, our digital
deposit channel. Bankwell Direct balances have increased to $136
million as of December 31, 2024.
- The Company continues to operate efficiently with a
non-interest expense to average asset ratio of 1.63% for the
quarter ended December 31, 2024.
Fourth Quarter 2024 Financial Highlights and Key
Performance Indicators (KPIs):
December 31,
2024
September 30,
2024
June 30, 2024
March 31, 2024
December 31,
2023
Return on average assets(1)(6)
0.31
%
0.24
%
0.14
%
0.47
%
1.03
%
Pre-tax, pre-provision net revenue return
on average assets(1)(6)
0.98
%
1.13
%
1.22
%
1.10
%
1.27
%
Return on average shareholders'
equity(1)(6)
3.68
%
2.83
%
1.65
%
5.59
%
12.82
%
Net interest margin(1)(6)
2.60
%
2.72
%
2.75
%
2.71
%
2.81
%
Efficiency Ratio(1)(3)
59.2
%
58.8
%
55.9
%
60.3
%
55.0
%
Noninterest expense to average
assets(1)(6)
1.63
%
1.62
%
1.55
%
1.66
%
1.56
%
Net loan charge-offs as a percentage of
average loans(1)(6)
0.11
%
0.56
%
0.01
%
0.11
%
0.01
%
Dividend payout(1)(4)
62.50
%
82.30
%
142.86
%
41.67
%
18.35
%
Fully diluted tangible book value per
common share(1)(2)
$
34.03
$
33.76
$
33.61
$
33.57
$
33.39
Total capital to risk-weighted
assets(1)(5)
12.67
%
12.83
%
12.98
%
12.63
%
12.32
%
Total common equity tier 1 capital to
risk-weighted assets(1)(5)
11.61
%
11.80
%
11.73
%
11.60
%
11.30
%
Tier I Capital to Average Assets(1)(5)
10.07
%
10.24
%
10.17
%
10.09
%
9.81
%
Tangible common equity to tangible
assets(1)(2)
8.19
%
8.40
%
8.42
%
8.42
%
8.19
%
Earnings per common share - diluted
$
0.32
$
0.24
$
0.14
$
0.48
$
1.09
Common shares issued and outstanding
7,859,873
7,858,573
7,866,499
7,908,180
7,882,616
(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 quarter and year ended December 31, 2024, were $7.9
million and $35.4 million, respectively, a decrease of 24.6% and
27.7%, respectively, from the $10.5 million and $48.9 million
recognized for the quarter and year ended December 31, 2023,
respectively.
For the Quarter Ended
For the Year Ended
(Dollars in thousands)
December 31,
2024
September 30,
2024
June 30, 2024
March 31, 2024
December 31,
2023
December 31,
2024
December 31,
2023
Net interest income
$
20,199
$
20,717
$
21,219
$
21,147
$
22,245
$
83,282
$
94,468
Total noninterest income
964
1,156
683
915
1,129
3,718
4,842
Total revenues
21,163
21,873
21,902
22,062
23,374
87,000
99,310
Total noninterest expense
13,243
12,865
12,245
13,297
12,864
51,650
50,401
PPNR
$
7,920
$
9,008
$
9,657
$
8,765
$
10,510
$
35,350
$
48,909
(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 December 31, 2024 were $21.2 million, versus $23.4
million for the quarter ended December 31, 2023. The decrease in
revenues for the quarter ended December 31, 2024 was mainly
attributable to lower fees on loans. Revenues for the year ended
December 31, 2024 were $87.0 million, versus $99.3 million for the
year ended December 31, 2023. The decrease in revenues for the year
ended December 31, 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 December 31, 2024 and December 31, 2023 was
2.60% and 2.81%, respectively. The decrease in the net interest
margin was due to an increase in funding costs.
- Total non-interest expense of $13.2 million increased 2.9%
compared to the third quarter which was mainly driven by an
increase in OREO expenses.
Allowance for Credit Losses - Loans ("ACL-Loans")
The ACL-Loans was $29.0 million as of December 31, 2024 compared
to $27.9 million as of December 31, 2023. The ACL-Loans as a
percentage of total loans was 1.07% as of December 31, 2024
compared to 1.03% as of December 31, 2023.
Provision for credit losses was $4.5 million for the quarter
ended December 31, 2024. The increase in the provision for credit
losses for the quarter was primarily due to charge-offs of $3.0
million, including a $1.2 million charge off taken on a
Construction loan transferred to OREO during the quarter.
Total nonperforming loans decreased $12.3 million to $53.3
million as of December 31, 2024 when compared to the previous
quarter. The decrease was primarily due to an $8.8 million
construction loan transferred to OREO, the disposition of a C&I
loan (pediatric dental practice) of $1.7 million, and a charge off
to a commercial real estate loan of $1.1 million in the fourth
quarter of 2024. Nonperforming assets as a percentage of total
assets increased to 1.88% at December 31, 2024 from 1.53% at
December 31, 2023.
BANKWELL FINANCIAL GROUP, INC.
ASSET QUALITY (unaudited)
(Dollars in thousands)
For the Quarter Ended
December 31,
2024
September 30,
2024
June 30, 2024
March 31, 2024
December 31,
2023
ACL-Loans:
Balance at beginning of period
$
27,752
$
36,083
$
27,991
$
27,946
$
29,284
Charge-offs:
Residential real estate
—
—
(9
)
(132
)
—
Commercial real estate
(1,100
)
(8,184
)
(522
)
(3,306
)
(824
)
Commercial business
(703
)
(7,010
)
—
(197
)
—
Consumer
(5
)
(17
)
(12
)
(49
)
(15
)
Construction
(1,155
)
(616
)
—
—
—
Total charge-offs
(2,963
)
(15,827
)
(543
)
(3,684
)
(839
)
Recoveries:
Residential real estate
—
—
141
—
—
Commercial real estate
—
1,013
113
—
—
Commercial business
4
(34
)
—
27
464
Consumer
5
1
13
4
3
Construction
—
—
—
—
—
Total recoveries
9
980
267
31
467
Net loan (charge-offs) recoveries
(2,954
)
(14,847
)
(276
)
(3,653
)
(372
)
Provision (credit) for credit losses -
loans
4,209
6,516
8,368
3,698
(966
)
Balance at end of period
$
29,007
$
27,752
$
36,083
$
27,991
$
27,946
As of
December 31,
2024
September 30,
2024
June 30, 2024
March 31, 2024
December 31,
2023
Asset quality:
Nonaccrual loans
Residential real estate
$
791
$
1,316
$
1,339
$
1,237
$
1,386
Commercial real estate
44,814
46,360
28,088
19,083
23,009
Commercial business
7,672
9,101
17,396
16,841
15,430
Construction
—
8,766
9,382
9,382
9,382
Consumer
—
—
—
—
—
Total nonaccrual loans
53,277
65,543
56,205
46,543
49,207
Other real estate owned
8,299
—
—
—
—
Total nonperforming assets
$
61,576
$
65,543
$
56,205
$
46,543
$
49,207
Nonperforming loans as a % of total
loans
1.97
%
2.42
%
2.12
%
1.74
%
1.81
%
Nonperforming assets as a % of total
assets
1.88
%
2.01
%
1.79
%
1.48
%
1.53
%
ACL-loans as a % of total loans
1.07
%
1.07
%
1.36
%
1.04
%
1.03
%
ACL-loans as a % of nonperforming
loans
54.44
%
44.26
%
64.20
%
60.14
%
56.79
%
Total past due loans to total loans
1.63
%
2.40
%
0.84
%
1.44
%
0.78
%
Financial Condition & Capital
Assets totaled $3.3 billion at December 31, 2024, an increase of
$53.1 million, or 1.7% compared to December 31, 2023. Gross loans
totaled $2.7 billion at December 31, 2024, a decrease of $12.7
million, or 0.5% compared to December 31, 2023. Deposits totaled
$2.8 billion at December 31, 2024, an increase of $50.8 million, or
1.9% compared to December 31, 2023. Brokered deposits have
decreased $246.8 million or 25.9%, when compared to December 31,
2023.
Period End Loan Composition
December 31, 2024
September 30, 2024
December 31, 2023
Current QTD
% Change
YTD
% Change
Residential Real Estate
$
42,766
$
45,553
$
50,931
(6.1
)%
(16.0
)%
Commercial Real Estate(1)
1,899,134
1,887,942
1,947,648
0.6
(2.5
)
Construction
173,555
160,292
183,414
8.3
(5.4
)
Total Real Estate Loans
2,115,455
2,093,787
2,181,993
1.0
(3.0
)
Commercial Business
515,125
490,292
500,569
5.1
2.9
Consumer
75,308
39,126
36,045
92.5
108.9
Total Loans
$
2,705,888
$
2,623,205
$
2,718,607
3.2
%
(0.5
)%
(1)
Includes owner occupied commercial real
estate of $0.7 billion at December 31, 2024, September 30, 2024,
and December 31, 2023, respectively.
Period End Deposit Composition
December 31, 2024
September 30, 2024
December 31, 2023
Current QTD
% Change
YTD
% Change
Noninterest bearing demand
$
321,875
$
295,552
$
346,172
8.9
%
(7.0
)%
NOW
105,090
76,413
90,829
37.5
15.7
Money Market
899,413
840,234
887,352
7.0
1.4
Savings
90,220
87,212
97,331
3.4
(7.3
)
Time
1,370,972
1,388,760
1,315,073
(1.3
)
4.3
Total Deposits
$
2,787,570
$
2,688,171
$
2,736,757
3.7
%
1.9
%
Shareholders’ equity totaled $270.1 million as of December 31,
2024, an increase of $4.3 million compared to December 31, 2023,
primarily a result of net income of $9.3 million for the year ended
December 31, 2024. The increase was partially offset by dividends
paid of $6.3 million.
The Company's capital position was generally stable during the
fourth quarter, with total risk-based capital, common-equity tier 1
capital and leverage ratios at 12.67%, 11.61%, and 10.07%,
respectively, at December 31, 2024. The Company repurchased 85,990
shares at a weighted average price of $24.82 per share for the year
ended December 31, 2024.
We recommend reading this earnings release in conjunction
with the Fourth Quarter 2024 Investor Presentation, located at
https://investor.mybankwell.com/events-and-presentations/ and
included as an exhibit to our January 22, 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 January 23, 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.
BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(Dollars in thousands)
December 31,
2024
September 30,
2024
June 30, 2024
March 31, 2024
December 31,
2023
ASSETS
Cash and due from banks
$
293,552
$
275,829
$
234,277
$
245,043
$
267,521
Federal funds sold
13,972
15,508
17,103
2,584
1,636
Cash and cash equivalents
307,524
291,337
251,380
247,627
269,157
Investment securities
Marketable equity securities, at fair
value
2,118
2,148
2,079
2,069
2,070
Available for sale investment securities,
at fair value
107,428
108,866
107,635
108,417
109,736
Held to maturity investment securities, at
amortized cost
36,553
34,886
28,286
15,739
15,817
Total investment securities
146,099
145,900
138,000
126,225
127,623
Loans receivable (net of ACL-Loans of
$29,007, $27,752, $36,083, $27,991, and $27,946 at December 31,
2024, September 30, 2024, June 30, 2024, March 31, 2024, and
December 31, 2023, respectively)
2,672,959
2,591,551
2,616,691
2,646,686
2,685,301
Accrued interest receivable
14,535
14,714
14,675
15,104
14,863
Federal Home Loan Bank stock, at cost
5,655
5,655
5,655
5,655
5,696
Premises and equipment, net
23,856
24,780
25,599
26,161
27,018
Bank-owned life insurance
52,791
52,443
52,097
51,764
51,435
Goodwill
2,589
2,589
2,589
2,589
2,589
Deferred income taxes, net
9,742
9,300
11,345
9,137
9,383
Other real estate owned
8,299
—
—
—
—
Other assets
24,571
22,811
23,623
24,326
22,417
Total assets
$
3,268,620
$
3,161,080
$
3,141,654
$
3,155,274
$
3,215,482
LIABILITIES AND SHAREHOLDERS’
EQUITY
Liabilities
Deposits
Noninterest bearing deposits
$
321,875
$
295,552
$
328,475
$
376,248
$
346,172
Interest bearing deposits
2,465,695
2,392,619
2,333,900
2,297,274
2,390,585
Total deposits
2,787,570
2,688,171
2,662,375
2,673,522
2,736,757
Advances from the Federal Home Loan
Bank
90,000
90,000
90,000
90,000
90,000
Subordinated debentures
69,451
69,389
69,328
69,266
69,205
Accrued expenses and other liabilities
51,536
45,594
52,975
54,454
53,768
Total liabilities
2,998,557
2,893,154
2,874,678
2,887,242
2,949,730
Shareholders’ equity
Common stock, no par value
119,108
118,429
118,037
118,401
118,247
Retained earnings
152,199
151,257
150,895
151,350
149,169
Accumulated other comprehensive (loss)
(1,244
)
(1,760
)
(1,956
)
(1,719
)
(1,664
)
Total shareholders’ equity
270,063
267,926
266,976
268,032
265,752
Total liabilities and shareholders’
equity
$
3,268,620
$
3,161,080
$
3,141,654
$
3,155,274
$
3,215,482
BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(Dollars in thousands, except share
data)
For the Quarter Ended
For the Year Ended
December 31,
2024
September 30,
2024
June 30, 2024
March 31, 2024
December 31,
2023
December 31,
2024
December 31,
2023
Interest and dividend income
Interest and fees on loans
$
42,851
$
43,596
$
43,060
$
43,325
$
44,122
$
172,832
$
170,181
Interest and dividends on securities
1,482
1,390
1,190
1,130
1,108
5,192
4,126
Interest on cash and cash equivalents
3,510
3,205
3,429
3,826
4,164
13,970
14,147
Total interest and dividend income
47,843
48,191
47,679
48,281
49,394
191,994
188,454
Interest expense
Interest expense on deposits
25,640
25,579
24,677
25,362
25,307
101,258
86,906
Interest expense on borrowings
2,004
1,895
1,783
1,772
1,842
7,454
7,080
Total interest expense
27,644
27,474
26,460
27,134
27,149
108,712
93,986
Net interest income
20,199
20,717
21,219
21,147
22,245
83,282
94,468
Provision (credit) for credit
losses
4,458
6,296
8,183
3,683
(960
)
22,620
866
Net interest income after provision
(credit) for credit losses
15,741
14,421
13,036
17,464
23,205
60,662
93,602
Noninterest income
Bank owned life insurance
348
346
333
329
316
1,356
1,192
Service charges and fees
589
575
495
304
688
1,963
1,629
Gains and fees from sales of loans
24
133
45
321
79
523
1,972
Other
3
102
(190
)
(39
)
46
(124
)
49
Total noninterest income
964
1,156
683
915
1,129
3,718
4,842
Noninterest expense
Salaries and employee benefits
5,656
6,223
6,176
6,291
6,088
24,346
24,595
Occupancy and equipment
2,600
2,334
2,238
2,322
2,231
9,494
8,665
Professional services
1,286
1,142
989
1,065
1,033
4,482
3,538
Data processing
905
851
755
740
747
3,251
2,888
Director fees
342
292
306
900
605
1,840
1,812
FDIC insurance
862
853
705
930
1,026
3,350
4,164
Marketing
175
73
90
114
139
452
651
Other
1,417
1,097
986
935
995
4,435
4,088
Total noninterest expense
13,243
12,865
12,245
13,297
12,864
51,650
50,401
Income before income tax
expense
3,462
2,712
1,474
5,082
11,470
12,730
48,043
Income tax expense
955
786
356
1,319
2,946
3,416
11,380
Net income
$
2,507
$
1,926
$
1,118
$
3,763
$
8,524
$
9,314
$
36,663
Earnings Per Common Share:
Basic
$
0.32
$
0.24
$
0.14
$
0.48
$
1.09
$
1.18
$
4.71
Diluted
$
0.32
$
0.24
$
0.14
$
0.48
$
1.09
$
1.17
$
4.67
Weighted Average Common Shares
Outstanding:
Basic
7,713,970
7,715,040
7,747,675
7,663,521
7,603,938
7,710,076
7,587,768
Diluted
7,727,412
7,720,895
7,723,888
7,687,679
7,650,451
7,737,952
7,647,411
Dividends per common share
$
0.20
$
0.20
$
0.20
$
0.20
$
0.20
$
0.80
$
0.80
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
December 31,
2024
September 30,
2024
June 30, 2024
March 31, 2024
December 31,
2023
Total Equity
$
270,063
$
267,926
$
266,976
$
268,032
$
265,752
Less:
Goodwill
2,589
2,589
2,589
2,589
2,589
Other intangibles
—
—
—
—
—
Tangible Common Equity
$
267,474
$
265,337
$
264,387
$
265,443
$
263,163
Total Assets
$
3,268,620
$
3,161,080
$
3,141,654
$
3,155,274
$
3,215,482
Less:
Goodwill
2,589
2,589
2,589
2,589
2,589
Other intangibles
—
—
—
—
—
Tangible Assets
$
3,266,031
$
3,158,491
$
3,139,065
$
3,152,685
$
3,212,893
Tangible Common Equity to Tangible
Assets
8.19
%
8.40
%
8.42
%
8.42
%
8.19
%
As of
Computation of Fully Diluted Tangible
Book Value per Common Share
December 31,
2024
September 30,
2024
June 30,
2024
March 31,
2024
December 31, 2023
Total shareholders' equity
$
270,063
$
267,926
$
266,976
$
268,032
$
265,752
Less:
Preferred stock
—
—
—
—
—
Common shareholders' equity
$
270,063
$
267,926
$
266,976
$
268,032
$
265,752
Less:
Goodwill
2,589
2,589
2,589
2,589
2,589
Other intangibles
—
—
—
—
—
Tangible common shareholders'
equity
$
267,474
$
265,337
$
264,387
$
265,443
$
263,163
Common shares issued and outstanding
7,859,873
7,858,573
7,866,499
7,908,180
7,882,616
Fully Diluted Tangible Book Value per
Common Share
$
34.03
$
33.76
$
33.61
$
33.57
$
33.39
BANKWELL FINANCIAL GROUP, INC.
EARNINGS PER SHARE ("EPS")
(unaudited)
(Dollars in thousands, except share
data)
For the Quarter Ended December
31,
For the Year Ended December
31,
2024
2023
2024
2023
(In thousands, except per
share data)
Net income
$
2,507
$
8,524
$
9,314
$
36,663
Dividends to participating
securities(1)
(39
)
(40
)
(156
)
(164
)
Undistributed earnings allocated to
participating securities(1)
(23
)
(181
)
(76
)
(794
)
Net income for earnings per share
calculation
2,445
8,303
9,082
35,705
Weighted average shares outstanding,
basic
7,714
7,604
7,710
7,588
Effect of dilutive equity-based
awards(2)
13
46
28
60
Weighted average shares outstanding,
diluted
7,727
7,650
7,738
7,648
Net earnings per common share:
Basic earnings per common share
$
0.32
$
1.09
$
1.18
$
4.71
Diluted earnings per common share
$
0.32
$
1.09
$
1.17
$
4.67
(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
December 31, 2024
December 31, 2023
Average
Balance
Interest
Yield/
Rate (4)
Average
Balance
Interest
Yield/
Rate (4)
Assets:
Cash and Fed funds sold
$
313,777
$
3,510
4.45
%
$
314,950
$
4,164
5.25
%
Securities(1)
151,300
1,506
3.98
133,440
1,041
3.12
Loans:
Commercial real estate
1,896,551
28,222
5.82
1,933,736
28,546
5.78
Residential real estate
44,329
753
6.79
52,026
718
5.52
Construction
171,244
3,281
7.50
199,541
3,793
7.44
Commercial business
505,655
9,911
7.67
496,476
9,944
7.84
Consumer
43,315
684
6.29
43,639
1,120
10.18
Total loans
2,661,094
42,851
6.30
2,725,418
44,121
6.33
Federal Home Loan Bank stock
5,655
119
8.36
5,696
119
8.31
Total earning assets
3,131,826
$
47,986
6.00
%
3,179,504
$
49,445
6.08
%
Other assets
94,781
94,459
Total assets
$
3,226,607
$
3,273,963
Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW
$
90,497
$
42
0.18
%
$
95,603
$
42
0.17
%
Money market
855,522
8,472
3.94
893,043
9,369
4.16
Savings
88,956
692
3.10
99,242
759
3.04
Time
1,385,264
16,434
4.72
1,341,871
15,136
4.48
Total interest bearing deposits
2,420,239
25,640
4.21
2,429,759
25,306
4.13
Borrowed Money
159,416
2,004
5.00
159,165
1,842
4.59
Total interest bearing liabilities
2,579,655
$
27,644
4.27
%
2,588,924
$
27,148
4.16
%
Noninterest bearing deposits
322,135
351,071
Other liabilities
54,013
70,181
Total liabilities
2,955,803
3,010,176
Shareholders' equity
270,804
263,787
Total liabilities and shareholders'
equity
$
3,226,607
$
3,273,963
Net interest income(2)
$
20,342
$
22,297
Interest rate spread
1.73
%
1.92
%
Net interest margin(3)
2.60
%
2.81
%
(1)
Average balances and yields for securities
are based on amortized cost.
(2)
The adjustment for securities and loans
taxable equivalency amounted to $143 thousand and $52 thousand for
the quarters ended December 31, 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 Year Ended
December 31, 2024
December 31, 2023
Average
Balance
Interest
Yield/
Rate (4)
Average
Balance
Interest
Yield/
Rate (4)
Assets:
Cash and Fed funds sold
$
283,353
$
13,970
4.93
%
$
289,582
$
14,147
4.89
%
Securities(1)
142,744
5,098
3.57
129,785
3,906
3.01
Loans:
Commercial real estate
1,905,973
112,804
5.82
1,932,627
109,110
5.57
Residential real estate
47,767
2,978
6.23
55,607
2,751
4.95
Construction
162,180
12,197
7.40
195,773
14,268
7.19
Commercial business
514,800
42,006
8.03
533,736
41,406
7.65
Consumer
41,869
2,847
6.80
34,022
2,646
7.77
Total loans
2,672,589
172,832
6.36
2,751,765
170,181
6.10
Federal Home Loan Bank stock
5,666
477
8.41
5,570
427
7.68
Total earning assets
3,104,352
$
192,377
6.09
%
3,176,702
$
188,661
5.86
%
Other assets
92,886
79,571
Total assets
$
3,197,238
$
3,256,273
Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW
$
96,091
$
175
0.18
%
$
97,203
$
170
0.17
%
Money market
851,283
34,767
4.08
906,354
32,901
3.63
Savings
90,587
2,785
3.07
113,260
3,163
2.79
Time
1,335,680
63,531
4.76
1,303,915
50,672
3.89
Total interest bearing deposits
2,373,641
101,258
4.27
2,420,732
86,906
3.59
Borrowed Money
159,320
7,454
4.68
160,661
7,080
4.35
Total interest bearing liabilities
2,532,961
$
108,712
4.29
%
2,581,393
$
93,986
3.64
%
Noninterest bearing deposits
332,611
368,926
Other liabilities
60,466
53,893
Total liabilities
2,926,038
3,004,212
Shareholders' equity
271,200
252,061
Total liabilities and shareholders'
equity
$
3,197,238
$
3,256,273
Net interest income(2)
$
83,665
$
94,675
Interest rate spread
1.80
%
2.22
%
Net interest margin(3)
2.70
%
2.98
%
(1)
Average balances and yields for securities
are based on amortized cost.
(2)
The adjustment for securities and loans
taxable equivalency amounted to $383 thousand and $207 thousand for
the year ended December 31, 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/20250122185628/en/
Christopher R. Gruseke, 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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