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Bankwell Financial Group Reports Operating Results for the Third Quarter, Declares Fourth Quarter Dividend, and Announces Share Repurchase Plan
NEW CANAAN, Conn.--(BUSINESS WIRE)-- Bankwell Financial Group, Inc. (NASDAQ: BWFG), a leading commercial bank with a growing digital focus, reported GAAP net
About this update from Bankwell Financial Group, Inc.
[{"type":"text","content":" NEW CANAAN, Conn.--(BUSINESS WIRE)--\nBankwell 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.\n\nThird 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.\n\nOn 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.\n\nDiscussion of Outlook; Bankwell Financial Group President and CEO, Christopher R. Gruseke:\n\n\"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.\"\n\nKey Points for Third Quarter and Bankwell’s Outlook\n\nBrokered Deposits Decrease, Liability Sensitive Balance Sheet.\n\n\nBrokered deposits declined $24.2 million in the third quarter of 2024 and are down $168.5 million since December 31, 2023.\n\n\nReported 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.\n\n\nWith $1.3 billion of time deposits maturing in the next 12 months at a weighted average rate of 4.89%, the Company anti...