Bankwell Financial Group, Inc. · NASDAQ:BWFG
Bankwell Financial — Virtual Russell Micro Cap Field Trip (March 2021)
21 slides from Bankwell Financial's conference presentation, Mar 16, 2021
Slide 1: Bankwell Financial Group Virtual Russell Micro Cap Field Trip
Bankwell Financial Group Virtual Russell Micro Cap Field Trip March 18th, 2021
Slide 2: Safe Harbor
2 Safe Harbor 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 strictly to historical or c
Slide 3: Table of Contents
3 Table of Contents • 2021 Outlook • Loans & Deposits Trends • Non Performing Loans & PPP Updates • Capital • Bankwell History & Overview
Slide 4: 2021 Outlook
2021 Outlook
Slide 5: 2021 Outlook
5 2021 Outlook Outlook unchanged from BWFG’s 4Q20 Investor Presentation • Entering 2021 with a strong balance sheet and 1.29% ALLL reserve • Provision expense in 2021 to be well below 2020 • Expected loan growth excluding PPP of ~5% for full year 2021 • Continued decrease in funding costs • Full yea
Slide 6: Loan Portfolio Trends
6 1 Weighted average yield based on active loans as of 12-31 for each of the respective years Dollars in millions Loan Portfolio Trends 1 • Robust 1Q21 originations pipeline, with C&I accounting for ~70% ̶ Funded ~$84 million through 3/12/21, comprised of 80% C&I, 10% Consumer and 10% CRE ̶ Yields o
Slide 7: Positive Outlook For Cost of Deposits
7 Positive Outlook For Cost of Deposits • Lowered deposit pricing across all products as of March 1st, 2021; on track to deliver or beat previously presented outlook • ~$70 million wholesale deposits maturing in 1H’21, at an average rate of 0.89% • ~$150 million retail CDs maturing in 1H’21, at an a
Slide 8: Recent Trends Steadily Improving Deposit Mix
8 Recent Trends Steadily Improving Deposit Mix 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2018 2019 2020 2Q21 Est 18.5% 16.2% 12.4% 14.3% 28.1% 28.6% 20.7% 16.0% 53.4% 55.3% 66.9% 69.7% Brokered Deposits Retail CDs Core Deposits $1,502 $1,492 Dollars in millions $1,827 ~$1,775
Slide 9: Expanding Commercial Relationships
9 Expanding Commercial Relationships 1 As of March 12th, 2021 2 Core deposits exclude all brokered deposits and all time deposits • Commercial deposits grew ~$317 million in 2020, including $77 million (~43%) in non-interest bearing deposits • Commercial deposits grew $50 million year-to-date 20211,
Slide 10: Net Interest Margin
10 • Although trends are favorable on loans & deposits, excess liquidity prevents further improvement to the 2021 NIM forecast at this time • Timing of excess liquidity runoff is uncertain Net Interest Margin NIM Forecast of 3.00% - 3.15% unchanged from 4Q20 Investor Presentation
Slide 11: Non-Performing Loans & PPP Updates
Non-Performing Loans & PPP Updates
Slide 12: Non Performing Loans
12 Non Performing Loans 0.88% 0.66% 2.06% 2018 2019 2020 Non Performing Loans / Gross Loans NPLs $14,082 $10,588 $33,416 1.57% 0.32% 0.16% 2020 Detail 2.06% SBA-guaranteed portion of NPLs Dollars in thousands COVID-19 related NPLs All other NPLs NPL population adequately collateralized or individual
Slide 13: PPP Update
13 PPP Update • $22.7 million of PPP loans remain as of 3/12/21, compared to $34.8 million at 12/31/20: • ~$0.4 million of PPP fees recognized as income in January & February 2021 • Remaining PPP fees to be accreted are ~$0.5 million; ~$120 thousand per quarter until forgiveness or maturity • Forgiv
Slide 14: Capital
Capital
Slide 15: Tangible Book Value
15 Tangible Book Value • TBV at Dec-20 was $22.43 • As of 3/14/21, the mark-to-market on long-dated interest rate swaps adds ~$0.93 to TBV Isolated Impact of Interest Rate Swaps Mark-to-Market on TBV $22.43 ~$23.36~$0.93 12/31/20 TBV Swap Mark Impact 3/14 Through March 14th, 2021 Chart does not refl
Slide 16: Capital Position as of 12-31-2020
16 Capital Position as of 12-31-2020 7.83% 9.58% 12.36% 13.57% 7.73% 8.44% 11.06% 12.28% 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 it al 4Q20 3Q20 ‘Adequate’ + Buffer Min Key Capital Rat
Slide 17: Bankwell History & Overview
Bankwell History & Overview
Slide 18: Company Overview
18 + 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 • Connecticut-based $2 billion bank, with focus on CRE and C&I lending • 11 existing branches in Fairfield & New Haven Counties (as of 1/1/21) • BWFG has $136 million dep
Slide 19: Bankwell's Milestones
19 Bankwell’s Milestones 2002 2008 2010 2013 2014 2016 2018 2019 Founded third bank, Stamford First Bank, a division of The Bank of New Canaan Bankwell acquired Quinnipiac Bank & Trust Company Opened 3 new branches in Fairfield County Founded second bank, The Bank of Fairfield The banks merge into “
Slide 20: Experienced Leadership Team
20 Experienced Leadership Team Name Years Experience Selected Professional Biography Christopher Gruseke President & CEO (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 New Canaan. He brings more
Slide 21: Thank You & Questions
x Thank You & Questions
Bankwell Financial Group — Virtual Russell Micro Cap Field Trip (March 2021) on 6ix