Bankwell Financial Group, Inc. · NASDAQ:BWFG
Bankwell Financial — Q2 2019 Earnings Presentation
25 slides from Bankwell Financial's earnings presentation, Jul 30, 2019
Slide 1: Bankwell Financial Group 2Q19 Investor Presentation
Bankwell Financial Group 2Q19 Investor Presentation
Slide 2: Safe Harbor
Safe Harbor This presentation 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 word
Slide 3: 2Q19 Performance
2Q19 Performance
Slide 4: 2Q19 Highlights
2Q19 Highlights • Reported Net Income of $5.6 million, or $0.71 earnings per share • The orderly resolution of the “Quarry Loans”1 progressing according to plan • Solid loan originations of $75 million; net loan growth continues to be impacted by elevated prepayments • Repurchased 34,168 of outstand
Slide 5: 2Q19 Results
2Q19 Results • $5.6 million Net Income • 1.20% Return on Average Assets Profitability • 12.48% Return on Average Equity • $22.47 Tangible Book Value • $1.6 billion of gross loans Balance Sheet • $1.5 billion of deposits • $13 million of assets per FTE • 2Q19 dividend of $0.13 per share paid • Consid
Slide 6: 2Q Consolidated Statement of Income
2Q Consolidated Statement of Income 1 Dollars in millions 2019 2018 QoQ Notes Total Interest Income $21.0 $19.4 $1.6 Net Interest Income Total Interest Expense $7.5 $5.5 $1.9 • Higher average earning assets along with incremental fees from Net Interest Income $13.6 $13.9 $(0.3) loan prepayments driv
Slide 7: 2Q YTD Consolidated Statement of Income
2Q YTD Consolidated Statement of Income 1 Dollars in millions 2019 2018 QoQ Notes Total Interest Income $42.5 $38.0 $4.5 Net Interest Income Total Interest Expense $14.7 $10.4 $4.2 • Higher average earning assets year over year along with Net Interest Income $27.9 $27.6 $0.3 incremental fees from lo
Slide 8: 2Q Consolidated Balance Sheet
2Q Consolidated Balance Sheet 1 Dollars in millions 2Q19 4Q18 V Cash & Cash Equivalents $79 $78 $1 Investment Securities $116 $117 $(0) Loans Receivable, net $1,552 $1,587 $(35) All Other Assets $113 $92 $21 Total Assets $1,860 $1,874 $(14) Total Deposits $1,478 $1,502 $(25) FHLB Advances & Other Bo
Slide 9: Financial Performance Trends
Financial Performance Trends Net Income Revenue • Rising deposit costs increase $59.0 $60.2 pressure on NIM $51.8 $46.3 • 2019 NIM is benefitting from fees associated with elevated $34.7 $30.5 loan prepayments, including approximately $1.8 million in fees collected • The 2019 Efficiency Ratio is Dol
Slide 10: Loan Pricing Trends
Loan Pricing Trends Dollars in millions Total Loan Portfolio $1,800 4.68% 5.00% 4.64% 4.38% 4.48% $1,700 4.50% $1,605 $1,568 $1,600 $1,543 4.00% $1,500 3.50% $1,400 $1,366 3.00% $1,300 2.50% $1,200 2.00% $1,100 1.50% $1,000 1.00% 2016 2017 2018 2Q19 Gross Loan Balance Portfolio Yield • 2019 originat
Slide 11: Loan Trends
Loan Trends Dollars in millions Loan Volume Prepayments $424 Quarter 2017 2018 2019 $400 $402 1Q $24 $7 $53 2Q $25 $33 $71 $321 $307 $306 $308 3Q $11 $17 4Q $29 $62 Total $89 $119 $124 $211 Avg / Qtr $22 $30 $62 $168 • Healthy 2019 originations in a $121 competitive environment • 2019 volume rebound
Slide 12: Portfolio Metrics
Portfolio Metrics
Slide 13: Financial Snapshot
Financial Snapshot Dollars in thousands, except per share data 2014 2015 2016 2017 1 2018 2Q19 YTD Total assets $1,099,531 $1,330,372 $1,628,919 $1,796,607 $1,873,665 $1,859,665 Net loans $915,981 $1,129,748 $1,343,895 $1,520,879 $1,586,775 $1,551,620 Loans to deposits 110.7% 109.1% 105.6% 110.1% 10
Slide 14: Loan Portfolio
Loan Portfolio Dollars in millions $1,605 $1,800 $1,543 $1,568 $60 $1,600 $1,366 $174 $1,400 $1,148 $160 $1,200 $930 $1,000 $800 $921 $600 $400 $89 $164 $200 $0 2014 2015 2016 2017 2018 2Q19 Residential Mortgages/Consumer (CAGR -4%) Construction (CAGR 8%) Commercial Mortgage (CAGR 21%) Commercial Mo
Slide 15: Loan Portfolio
Loan Portfolio Consumer Loans / Other 0.70% Commercial Const. Residential 5.69% • Portfolio oversight 9.78% provided by team of 13 skilled credit analysts and portfolio managers, most C&I with > 20 years’ 14.89% experience • Concentration actively managed, with no single relationship representing mo
Slide 16: CRE Loan Portfolio
CRE Loan Portfolio 1 Dollars in millions Special Use Industrial 3.43% Warehouse Retail Composition $ % 9.78% Retail2 $186 58.65% Mixed Use Grocery $74 23.25% 9.34% Retail Pharmacy $30 9.49% 29.37% Gas / Auto Services $14 4.33% Restaurant $14 4.28% MultiFamily 11.75% Total Retail $317 100.00% • Avera
Slide 17: CRE Loan Portfolio Geography Distribution
CRE Loan Portfolio 1 Geography Distribution CRE to Risk Based Capital Ratio TX 480% GA 1.44% 471% 470% 1.56% 462% MS All Other 1.62% 440% 9.38% NC 1.70% NY 12.78% CT 71.52% 2016 2017 2018 1Q19 2Q19 • Proven track record as CRE Lender with strong risk management practices in place • Continued focus i
Slide 18: Deposits
Deposits Dollars in millions $1,502 $1,478 $1,600 $1,398 $1,289 $1,400 $1,047 $640 $1,200 $835 $1,000 $800 $434 $600 $174 $400 $229 $200 $0 2014 2015 2016 2017 2018 2Q19 Checking Savings Money Market Time Deposits 18
Slide 19: Deposit Market Share
Deposit Market Share Growing deposit share in very competitive markets Deposit Market Share Location 2013 2014 2015 2016 2017 2018 New Canaan 19.77% 22.71% 24.40% 29.59% 31.10% 32.44% Wilton 6.26% 6.87% 7.76% 9.85% 13.81% 15.18% Fairfield 5.95% 7.65% 6.38% 7.58% 9.18% 9.14% Norwalk not applicable 1.
Slide 20: Bankwell Overview
Bankwell Overview
Slide 21: Bankwell's Milestones
Bankwell’s Milestones Named a “ Top 100 Best $1.9 Performing Community Bank of 2016”1 2016 2Q19 Founded third bank, 5 Year Stamford First Bank, anniversary of a division of The BWFG on Bank of New Canaan $1.1 2018 NASAQ Opened 3 new Holding Company 2010 branches in formed (BNC 2014 Fairfield Financi
Slide 22: Bankwell Profile
Bankwell Profile Company Overview NASDAQ: BWFG • Connecticut-based $1.9 billion bank, with focus on CRE and C&I lending • 12 existing branches in Fairfield & New Haven Counties • Excluding the 3 branches opened in 2018, BWFG has $162 million deposits per branch; highest in Fairfield & New Haven Coun
Slide 23: Why Bankwell?
Why Bankwell? • Proven track record of quality loan originations Growth • Tangible Book Value growth of 38% since 2014 IPO • Operates in premiere markets • Strong credit culture; prudent, conservative credit standards Risk • Historically low NPLs / NPAs with low charge-offs Management • Diverse prod
Slide 24: Management Team
Management Team Years Name Experience Selected Professional Biography Christopher Gruseke 25+ • Founding investor of Bankwell’s precursor, Bank of New Canaan, member of BoD and ALCO President & CEO Committee 2009 to 2012 (since 2015) • 20 year Investment Banking career focused on financial instituti
Slide 25: Thank You & Questions
ae Thank You & Questions
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