Bankwell Financial Group, Inc. · NASDAQ:BWFG
Bankwell Financial — Q2 2025 Earnings Presentation
24 slides from Bankwell Financial's earnings presentation, Jul 28, 2025
Slide 1: Second Quarter 2025 Investor Presentation
Second Quarter 2025 Investor Presentation July 28, 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: Second Quarter 2025 Highlights
Second Quarter 2025 Highlights 1.14% Return on Average Assets +28 bp growth over LQ 3.10% reported Net Interest Margin, +29 bps LQ expansion on improved funding profile Added four deposit-focused teams in NYC metro during the quarter; one additional team in July 2025 $48 million non-interest bearing
Slide 4: Second Quarter 2025 Financial Summary
Second Quarter 2025 Financial Summary • Fully diluted EPS of $1.15, up 32% versus LQ and driven by improving net interest EPS margin and increased non-interest income • PPNR of $11.4 million, or $1.46 per share, increased 21% LQ PPNR • Net interest income of $23.9 million benefitted from 20 bps LQ d
Slide 5: Second Quarter 2025 GAAP Results
Second Quarter 2025 GAAP Results Bankwell Financial Group, Inc. ($ in millions, except per share data) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Net Interest Income $ 23.9 $ 22.1 $ 20.2 $ 20.7 $ 21.2 $ 21.1 $ 22.2 $ 22.7 $ 24.0 (Credit) Provision for Credit Losses (0.4)
Slide 6: Private Client Groups | 2Q25 Update
Private Client Groups | 2Q25 Update • Since April 2025, hired 14 New York metro-based employees to build out our deposit gathering capabilities • 5 new teams added through July, all with proven success in generating no- and low-cost deposits 6
Slide 7: Maintaining our Strong Balance Sheet
Maintaining our Strong Balance Sheet Dollars in millions 2.1X Liquidity Coverage Abundant Excess Liquidity $1,509 Unencumbered Securities $109 • $2,024 million total insured deposits includes: Unencumbered Cash $319 ‒ $1,904 million FDIC-insured deposits ‒ $120 million deposits secured by FHLB LOCs
Slide 8: Well Positioned For Lower Rates
Well Positioned For Lower Rates Dollars in millions • For the remainder of 2025, $665 million in time deposits maturing at a weighted average rate of 4.41%: ‒ $395 million Retail time repricing an average ~8 basis points lower based on current rates; annualized savings of $0.3 million of interest ex
Slide 9: Deposit Performance
Deposit Performance Funding Cost & NIM Trends 2Q25 Average Deposits IB Deposit 4.30% 4.30% Cost 4.27% 4.21% Rate 4.33% 4.08% Time 3.90% 47% 3.81% 3.80% Total Deposit 3.72% Rate 0.00% 3.69% Cost 3.60% DDA 13% 3.40% 3.30% Rate 0.29% 3.10% NOW 4% 2.81% 2.80% Rate 2.93% NIM 2.75% 2.72% Rate 3.83% Saving
Slide 10: Managing CRE Concentration Lower
Managing CRE Concentration Lower Dollars in millions CRE Investor CRE Owner Occupied C&I $2,719 $2,675 $2,706 $2,669 Construction $77 $87 $118 Residential / Other $104 480% 2,500 CRE Concentration $155 $183 $174 $204 460% 454% $501 $522 $516 $559 440% 2,000 $1,895 $89 425% $98 420% $697 $720 1,500 $
Slide 11: Credit Trends
Credit Trends Dollars in millions 2Q24 3Q24 4Q24 1Q25 2Q25 Risk Rating Balance % Balance % Balance % Balance % Balance % 1-5 “Pass” $2,497 94.0% $2,458 93.7% $2,557 94.5% $2,453 92.8% $2,523 94.5% 6 “Special Mention” $71 2.7% $97 3.7% $93 3.4% $1631 6.2% $1202 4.5% 7 “Substandard” $80 3.0% $67 2.5%
Slide 12: Financial Outlook
Financial Outlook Modest loan growth NIM expansion Dedicated to Stable credit making a difference. Continued capital growth Unchanged focus on efficiency 12
Slide 13: Questions?
Questions? <5 Bankwell 13
Slide 14: Appendix
Appendix Bankwell
Slide 15: Loan Portfolio Composition
Loan Portfolio Composition Total Loan Portfolio = $2,669 million Other Commercial 2.6% Residential • Favorable long-term trends in Investor CRE: Const. 1.3% 7.6% CRE Investor CRE O/O + C&I C&I 20.8% 34.9% 45.5% 44.9% 45.8% 48.1% CRE Investor 40.4% CRE Owner Occupied 55.2% 45.8% 45.2% 43.4% 40.4% 27.
Slide 16: Favorable Loan Yield Growth
Favorable Loan Yield Growth Dollars in millions 4,000 June 2025 Yield2 by Vintage Loan portfolio yields increased 209 bps since 2021 65% of balances are 2022-2025 vintages 7.00% 3,500 6.39% 8.00% 5.99% 6.09% 2025 6.00% 5.56% 7.50% 5.30% 3,000 2024 Pre 2022 $2,675 $2,719 $2,706 $2,669 5.00% 7.54% 2,5
Slide 17: CRE Loan Portfolio
CRE Loan Portfolio 1 Dollars in millions Total CRE Portfolio = $1,802 million By Property Type Other Special Use Loans Maturing or Repricing in 2025 - 20263 Medical Office 4% 2% Excluding floating rate loans 4% Mixed Use Owner 6% Property Type Investor Occupied Total Residential Care $31 $276 $307 I
Slide 18: Select CRE Sectors
Select CRE Sectors 1 Dollars in millions CRE Office : $150 million exposure 6% of total loan portfolio • 44 loans with $3.4 million average balance Geography • $106 million have personal recourse to high-net-worth guarantors; $44 FL million have no recourse: $2.2 CT - Fairfield ‒ $22 million owner o
Slide 19: C&I Loan Portfolio
C&I Loan Portfolio 1 By Industry Type Total Portfolio = $559 million Retail Trade Manufacturing Arts, Entertainment & Recreation 3% 2% 2% • 98% of C&I portfolio has recourse Admin & Support, Waste Mgmt, Remediation Svcs 5% • 96% of Healthcare loans have recourse Other 6% − Primarily consists of work
Slide 20: Combined Healthcare
Combined Healthcare Dollars in millions CRE Skilled Nursing Facility By State $838 million combined Healthcare portfolio • Consists primarily of skilled nursing facilities located across All Other the US MO 3% 17% IN FL 3% • Healthcare lending team has more than 15 years of industry 40% VA experienc
Slide 21: Non-Performing Assets
Non-Performing Assets Dollars in millions Loan % Total Segment Balance Assets Commentary • Suburban retail loan in Westchester County, NY modified during Loan 1 CRE – Retail $8.7 0.27% COVID • $4.5 million charged off, life-to-date • Class A suburban NJ office park • Bankwell 17% participant in $84
Slide 22: 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 $2,759 • Brokered deposit balances $705 $624 decreased $81 million YTD; $1,027 $952 $403 million reduction from peak • Non-Brokered deposits continue
Slide 23: Bankwell Financial Group (Nasdaq: BWFG)
Bankwell Financial Group (Nasdaq: BWFG) $3.2B $2.7B Total Assets Loans $0.28B $2.8B Equity Deposits Deposits Loans 1.83% ~160 Non-interest Exp / Assets Employees All Other Brokered 12% 23% C&I & Time > CREOO 1 $250k Core CRE Inv 48% 8.68% 10.17% 8% 40% 69% TCE Ratio Consolidated CET1 Ratio 1 Estimat
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Bankwell Financial Group — Q2 2025 Earnings Presentation on 6ix