Bankwell Financial Group Reports Operating Results for the Third Quarter, Declares Fourth Quarter Dividend, and Announces Share Repurchase Plan
Third quarter of 2024 results include an
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 $168.5 million -
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 4.89% , the Company anticipates an annualized reduction in funding costs by$3.35 million $0.33 -
Further, the Company anticipates
$0.5 billion
NPL to be Sold, Residential Care Upgrades a Positive Sign.
-
A
$27.1 million 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
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,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
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
|
For the Quarter Ended |
For the Nine Months Ended |
||||||||||||||||||
(Dollars in thousands) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|||||||
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 $23.5 million $65.8 million $75.9 million -
The net interest margin (fully taxable equivalent basis) for the quarters ended September 30, 2024 and September 30, 2023 was
2.72% and2.85% , 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 -
Overall non-interest income of
$1.2 million 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 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
Provision for credit losses was
Total nonaccrual loans increased
- As of October 28, 2024, the Company has a signed agreement for the sale of this loan at par value.
BANKWELL FINANCIAL GROUP, INC.
|
|||||||||||||||||||
|
For the Quarter Ended |
||||||||||||||||||
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
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,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
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
Period End Loan Composition |
September 30,
|
|
June 30,
|
|
December 31,
|
|
Current QTD
|
|
YTD
|
|||||
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 |
||||||||||||||
Period End Deposit Composition |
September 30,
|
|
June 30,
|
|
December 31,
|
|
Current QTD
|
|
YTD
|
|||||
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
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
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
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
BANKWELL FINANCIAL GROUP, INC.
|
|||||||||||||||||||
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
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 |
|
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.
|
|||||||||||||||||||||||||
|
For the Quarter Ended |
For the Nine Months Ended |
|||||||||||||||||||||||
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||
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.
|
|||||||||||||||||||
|
As of |
||||||||||||||||||
Computation of Tangible Common Equity to Tangible Assets |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
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,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|||||
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.
(Dollars in thousands) |
|||||||||||||||||
|
For the Quarter Ended |
||||||||||||||||
|
September 30, 2024 |
|
September 30, 2023 |
||||||||||||||
|
Average
|
|
Interest |
|
Yield/
|
|
Average
|
|
Interest |
|
Yield/
|
||||||
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 |
|
| (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.
|
|||||||||||||||||
|
For the Nine Months Ended |
||||||||||||||||
|
September 30, 2024 |
|
September 30, 2023 |
||||||||||||||
|
Average
|
|
Interest |
|
Yield/
|
|
Average
|
|
Interest |
|
Yield/
|
||||||
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 |
|
| (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
Source: Bankwell Financial Group, Inc
