Bankwell Financial Group, Inc. · NASDAQ:BWFG
Bankwell Financial — Q3 2021 Earnings Presentation
28 slides from Bankwell Financial's earnings presentation, Oct 27, 2021
Slide 1: 3Q21 Investor Presentation
BWFG | LISTED | NASDAQ 3Q21 Investor Presentation October 27th, 2021
Slide 2: Safe Harbor
2 BWFG LISTED NASDAQ BWFG LISTED NASDAQ This presentation may contain certain forward-looking statements about Bankwell Financial Group, Inc. (the “Company”). Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate s
Slide 3: Table of Contents
3 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Table of Contents • 3Q21 Performance • Trends • ALLL & Non-Performing Loans • Loan Portfolio • Capital • Bankwell History & Overview
Slide 4: 3Q21 Performance
BWFG | LISTED | NASDAQ 3Q21 Performance
Slide 5: 3Q21 Summary
5 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 3Q21 Summary • $6.85 million reported net income, or $0.87 earnings per share • Pre-tax, pre-provision net revenue (“PPNR”)1 of $8.79 million; 96% year-over-year increase • Quarterly loan growth of $92 million, or 5%, excluding PPP loan balances ̶ Year-to-date
Slide 6: 3Q21 Results
6 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 3Q21 Results 1 Ratios presented represent Bank ratios; presented ratios are preliminary, subject to finalization of the FDIC Call Report 2 Bankwell meets Adequate + buffer standard, which exceeds Well Capitalized thresholds Profitability Balance Sheet Capital
Slide 7: Income Statement and Balance Sheet 3Q21 vs 2Q21
7 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Income Statement 3Q21 2Q21 Var1 Total Interest Income $20.6 $20.1 $0.5 Total Interest Expense $2.9 $3.5 $0.6 Net Interest Income $17.7 $16.6 $1.1 Non-Interest Income $1.4 $1.4 $(0.0) Non-Interest Expense $10.4 $10.1 $(0.3) Pre-Tax, Pre-Provision Net Revenue $8
Slide 8: 3Q21 YTD Income Statement and Balance Sheet
8 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Income Statement 3Q21 YTD 3Q20 YTD Var1 Total Interest Income $59.5 $58.3 $1.1 Total Interest Expense $10.5 $17.8 $7.3 Net Interest Income $49.0 $40.5 $8.4 Non-Interest Income2 $4.8 $2.3 $2.6 Non-Interest Expense $30.1 $29.1 $(1.0) Pre-Tax, Pre-Provision Net R
Slide 9: Trends
3, Bankwell A FINANCIAL GROUP Trends BWFG | LISTED | NASDAQ
Slide 10: Performance Trends
10 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Performance Trends $18.98 $20.59 $22.06 $23.15 $22.43 $25.25 2016 2017 2018 2019 2020 3Q21 Tangible Book Value $1.62 $1.78 $2.21 $2.31 $0.75 $2.37 2016 2017 2018 2019 2020 3Q21 YTD Diluted EPS 0.85% 0.80% 0.94% 0.97% 0.28% 1.12% 2016 2017 2018 2019 2020 3Q21
Slide 11: Net Interest Margin
11 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Net Interest Margin 3.54% 3.30% 3.18% 3.03% 2.77% 3.08% 2016 2017 2018 2019 2020 3Q21 YTD Net Interest Margin • 3Q21 NIM of 3.39% • Favorable NIM outlook ̶ ~$100 million retail CDs maturing in next 2 quarters, at 1.43% average rate 0.91% 1.08% 1.42% 1.75% 1.2
Slide 12: Loan Trends
12 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Loan Trends $995 $1,107 $1,168 $1,202 $1,182 $1,237 $371 $436 $436 $402 $444 $587 $1,366 $1,543 $1,605 $1,604 $1,626 $1,825 2016 2017 2018 2019 2020 3Q21 Loan Balances All Other C&I + CRE Owner Occupied 3Q21 Loan Mix 3Q21 Portfolio Yield by Vintage1 C&I + CRE
Slide 13: Deposit Trends
13 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 11.5% 12.8% 14.8% 15.1% 16.9% 18.0% 4Q18 4Q19 4Q20 1Q21 2Q21 3Q21 Deposit Trends 18.5% 16.2% 12.4% 14.1% 15.9% 1 1 Core Deposits include Commercial and Consumer checking, savings and money market accounts 2 Wholesale Funding ratio defined as brokered deposits
Slide 14: Non Interest Expense
14 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Non Interest Expense 3Q21 YTD Non Interest Expense increased $1.0 million year over year to support revenue growth and increase operational efficiencies 58.0% 55.7% 54.1% 1Q21 2Q21 3Q21 2021 Quarterly Efficiency Ratio 1.93% 1.90% 2.03% 1.79% 2018 2019 2020 3Q
Slide 15: ALLL & Non-Performing Loans
BWFG | LISTED | NASDAQ ALLL & Non-Performing Loans
Slide 16: Non Performing Loans
16 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Non Performing Loans 0.88% 0.66% 2.06% 1.58% 2018 2019 2020 3Q21 Non Performing Loans / Gross Loans NPLs $14,082 $10,588 $33,416 $28,914 0.60% 1.19% 0.18% 0.21% 3Q21 Detail 1.58% SBA-guaranteed portion of NPLs All other NPLs NPL population adequately collater
Slide 17: Allowance for Loan Loss Walk
17 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 0.98% 0.76% 0.31% $(4.0) million $2.0 million ($2.1) million 0.16% 2020 Improving Economic Factors Asset Growth / Mix Specifics 3Q21 General Specific 2021 ALLL Coverage Allowance for Loan Loss (“ALLL”) Walk 1.29% 0.92% • Bankwell not subject to CECL; ALLL cal
Slide 18: Loan Portfolio
BWFG | LISTED | NASDAQ Loan Portfolio
Slide 19: CRE Loan Portfolio
19 BWFG LISTED NASDAQ BWFG LISTED NASDAQ CT 52% NY 19% NJ 5% All Other 24% Industrial Warehouse 8.32% Mixed Use 5.33% MultiFamily 9.73% Office 24.46% Other 15.89% 1-4 Family Investment 1.33% Retail 31.40% Special Use 3.55% • Property Type mix continues to show well diversified exposure • ~ 50% of al
Slide 20: C&I Loan Portfolio
20 BWFG LISTED NASDAQ BWFG LISTED NASDAQ C&I Loan Portfolio Loans by Industry Type Total C&I Portfolio = $293 million • Minimal exposure to the following industries (each industry < $5 million) : ̶ Accommodation & Food Services ̶ Transportation / Airlines • No exposure to the Energy or Hotel industr
Slide 21: Capital
BWFG | LISTED | NASDAQ Capital
Slide 22: Tangible Book Value
22 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Tangible Book Value Tangible Book Value (TBV) Per Share Walk • $0.80 increase in OCI primarily from mark-to-market on long-dated interest rate swaps • Repurchased 131,432 shares at an average price of $24.50 per share through September 30, 2021 1 Misc include
Slide 23: Capital Position
23 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Capital Position 8.30% 9.19% 10.95% 11.84% 8.70% 9.61% 10.59% 11.44% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% TC E Ti er 1 Le ve ra ge Ti er 1 / CE T1 To ta l C ap ita l 3Q21 2Q21 ‘Adequate’ + Buffe
Slide 24: History & Overview
BWFG | LISTED | NASDAQ History & Overview
Slide 25: Attractive Core Market
25 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Bankwell operates in an attractive core market: • Second most affluent MSA in the Nation in per capita personal income (PCPI)2 • 4 of the top 25 wealthiest towns in the U.S.3 • MSA ranked 12th most educated overall, tied for 1st with the highest percentage of
Slide 26: Financial Snapshot
26 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Financial Snapshot 2016 2017 2018 2019 2020 3Q21 YTD Total assets $1,628,919 $1,796,607 $1,873,665 $1,882,182 $2,253,747 $2,226,688 Net loans $1,343,895 $1,520,879 $1,586,775 $1,588,840 $1,601,672 $1,805,217 Loan-to-deposit ratio 105.6% 110.1% 106.4% 107.1% 8
Slide 27: Management Team
27 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Name Years Experience Selected Professional Biography Christopher Gruseke Chief Executive Officer Director (since 2015) 30+ Mr. Gruseke was a founding investor and director of Bankwell Financial Group’s predecessors, BNC Financial Group, Inc., and The Bank of
Slide 28: Thank You & Questions
BWFG | LISTED | NASDAQ Thank You & Questions
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