Bankwell Financial Group, Inc. · NASDAQ:BWFG
Bankwell Financial — Q1 2025 Earnings Presentation
23 slides from Bankwell Financial's earnings presentation, Apr 24, 2025
Slide 1: First Quarter 2025 Investor Presentation
First Quarter 2025 Investor Presentation April 24, 2025
Slide 2: Forward Looking Statement
Forward Looking Statement Important note regarding forward-looking statements: Statements made in this presentation which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management’s
Slide 3: First Quarter 2025 Results
First Quarter 2025 Results 0.83% NPA Ratio down 105 basis points to LQ on dispositions of $27.1 million CRE Multifamily NPL & $8.3 million OREO asset 2.81% reported Net Interest Margin, +21 bps LQ expansion Brokered deposits declined $81 million to LQ; core deposits up $43 million to LQ, including $
Slide 4: First Quarter 2025 Financial Summary
First Quarter 2025 Financial Summary • Fully diluted EPS of $0.87, up 81% versus PYQ and driven by improving net EPS interest margin and lower provision expense • PPNR of $9.4 million, or $1.22 per share, increased 11% LQ PPNR • Net interest income of $22.1 million benefitted from -12bps LQ deposit
Slide 5: First Quarter 2025 GAAP Results
First Quarter 2025 GAAP Results Bankwell Financial Group, Inc. ($ in millions, except per share data) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Net Interest Income $ 22.1 $ 20.2 $ 20.7 $ 21.2 $ 21.1 $ 22.2 $ 22.7 $ 24.0 $ 25.5 Provision for Credit Losses 0.5 4.5 6.3 8.2
Slide 6: Maintaining our Strong Balance Sheet
Maintaining our Strong Balance Sheet Dollars in millions 2.3X Liquidity Coverage Abundant Excess Liquidity $1,573 Unencumbered Securities $99 • $2,067 million total insured deposits includes: Unencumbered Cash $305 ‒ $1,948 million FDIC-insured deposits ‒ $119 million deposits secured by FHLB LOCs $
Slide 7: Reduced Reliance on Brokered Deposits
Reduced Reliance on Reduced Reliance on Brokered Deposits Dollars in millions Brokered Deposits $2,801 Brokered Deposits Peaked in 4Q22 $2,737 $2,788 $2,750 • Brokered deposit balances $705 $624 decreased $81 million LQ; $1,027 $952 $403 million reduction from peak • Non-Brokered deposits continue t
Slide 8: Well Positioned Balance Sheet For Lower Rates
Well Positioned Balance Sheet For Lower Rates Dollars in millions • Liability sensitive, with $1.2 billion of time deposits maturing in next twelve months: ‒ $719 million Retail time repricing an average ~22 basis points lower based on current rates; annualized savings of $1.6 million of interest ex
Slide 9: Managing CRE Concentration Lower
Managing CRE Concentration Lower Dollars in millions • No single relationship greater than 4% • Expansion into Residential Care diversifying loan portfolio CRE Investor CRE Owner Occupied C&I Construction Residential / Other CRE Concentration $2,675 $2,719 $2,706 $2,645 500% $77 $87 $118 $183 $116 2
Slide 10: Credit Trends
Credit Trends Dollars in millions 1Q24 2Q24 3Q24 4Q24 1Q25 Risk Rating Balance % Balance % Balance % Balance % Balance % 1-5 “Pass” $2,527 94.3% $2,497 94.0% $2,458 93.7% $2,557 94.5% $2,453 92.8% 6 “Special Mention” $72 2.7% $71 2.7% $97 3.7% $93 3.4% $1631 6.2% 7 “Substandard” $68 2.5% $80 3.0% $6
Slide 11: 1Q25 Non-Performing Asset Update
1Q25 Non-Performing Asset Update Dollars in millions Activity During the Quarter • Sale of $8.3 million OREO asset, with no P&L impact • Sale of $27.1 million CRE-multifamily at par; collected $0.9 million accrued interest • Remaining Non-Performing Assets comprised of: % Total Segment Balance Asset
Slide 12: CRE Office Portfolio
CRE Office Portfolio 1 Dollars in millions Geography Composition $160 million Office exposure 6% of total loan portfolio FL $2.2 CT - Fairfield • 46 loans with $3.5 million average balance County GA $48.6 • One $5.5 million non-performing loan $12.3 CT - All Other ‒ Class A suburban NJ office park M
Slide 13: Financial Outlook
Financial Outlook Modest loan growth Continued NIM expansion Dedicated to Stable credit making a difference. Continued capital growth Unchanged focus on efficiency 13
Slide 14: Questions?
Questions? <5 Bankwell 14
Slide 15: Appendix
Appendix Bankwell
Slide 16: Average Deposits & NIM | Recent Trends
Average Deposits & NIM | Recent Trends Dollars in millions Average Interest Bearing Average Non-Interest Bearing IB Deposit Cost Total Deposit Cost NIM $2,793 $2,723 $2,742 $2,800 $2,692 $2,668 $334 $337 $322 $368 $303 6.00% $2,420 $2,459 $2,300 $2,386 $2,365 $2,323 5.00% $1,800 4.28% 4.27% 4.30% 4.
Slide 17: Loan Portfolio Composition
Loan Portfolio Composition Total Loan Portfolio = $2,645 million Other Commercial 2.9% Residential Const. 1.5% • Favorable long-term trends in Investor CRE: 7.1% CRE Investor CRE O/O + C&I C&I 20.0% 34.9% 45.5% 44.9% 45.8% 46.1% CRE Investor 42.4% CRE Owner Occupied 26.1% 55.2% 45.8% 45.2% 43.4% 42.
Slide 18: Favorable Loan Yield Growth
Favorable Loan Yield Growth Dollars in millions 4,000 March 2025 Yield2 by Vintage Loan portfolio yields increased 195 bps since 2021 62% of balances are 2022-2025 vintages 7.00% 3,500 8.17% 6.25% 2025 5.99% 6.09% 7.56% 6.00% 2024 5.56% 3,000 5.41% 7.47% Pre 2022 $2,675 $2,719 $2,706 $2,645 2023 5.0
Slide 19: CRE Loan Portfolio
CRE Loan Portfolio 1 Dollars in millions Total CRE Portfolio = $1,811 million By Property Type Loans Maturing or Repricing in 2025 - 20263 Excluding floating rate loans Residential Care 35% Owner Special Use Property Type Investor Occupied Total 2% Other Residential Care $31 $362 $392 4% Medical Off
Slide 20: C&I Loan Portfolio
C&I Loan Portfolio 1 By Industry Type Total Portfolio = $529 million Arts, Entertainment Manufacturing & Recreation 2% • 98% of C&I portfolio has recourse 2% Retail Trade 3% • 98% of Healthcare loans have recourse Other 7% Admin & Support, − Primarily consists of working capital lines Waste Mgmt, Re
Slide 21: Combined Healthcare
Combined Healthcare Dollars in millions CRE Skilled Nursing Facility By State $832 million combined Healthcare portfolio TN NV 2% All Other • Consists primarily of skilled nursing facilities located across 2% 12% AL the US 2% IA 3% IN • Healthcare lending team has more than 15 years of industry 3% F
Slide 22: Bankwell Financial Group (Nasdaq: BWFG)
Bankwell Financial Group (Nasdaq: BWFG) $3.2B $2.6B Total Assets Loans $0.28B $2.8B Equity Deposits Deposits Loans 1.76% ~145 Non-interest Exp / Assets Employees All Other Brokered 12% 23% C&I & Time > CREOO 1 $250k Core CRE Inv 46% 8.57% 10.04% 7% 70% 42% TCE Ratio CET1 Ratio 1 Estimate, pending FR
Slide 23: BERBER Eee \
BERBER Eee \ BRE BBE ee mshaheel ahahaha TTL TT iti ji BEES
Bankwell Financial Group — Q1 2025 Earnings Presentation on 6ix