Bankwell Financial Group, Inc. · NASDAQ:BWFG
Bankwell Financial — Q1 2018 Earnings Presentation
19 slides from Bankwell Financial's earnings presentation, May 11, 2018
Slide 1: Bankwell Financial Group 1Q'18 Investor Presentation
Bankwell Financial Group1Q’18 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: Bankwell's Story
Bankwell’s Story Bankwell is one of the fastest growing and most profitable community banks in Connecticut. Bankwell was named one of the “Top 100 Best Performing Community Banks of 2016” between $1 billion and $10 billion in assets nationwide based on certain metrics for the year ended December 31,
Slide 4: Industry and Community Recognition
Industry and Community Recognition Named by S&P Global Market Intelligence one of the “Top 100 Best Performing Community Banks of 2016” Named by Banking Choice Awards “#1 Bank in Fairfield County for Customer Service” Named to Sandler O’Neill “Sm-All Stars Class of 2017”
Slide 5: Bankwell Profile
Bankwell Profile $1.83B asset Connecticut-based bank with focus on CRE and C&I lending9 existing branches in Fairfield & New Haven Counties, with 3 new branches scheduled to open in 2Q’18 Company Overview NASDAQ: BWFG $158MM deposits per branch, highest in Fairfield & New Haven Counties1Attractive c
Slide 6: Why Bankwell?
Why Bankwell? Consistently strong performer in highly attractive markets 1 as of March 31st, 20182 as of March 28th, 2018
Slide 7: 2018 Strategic Priorities
2018 Strategic Priorities Balance Sheet Diversification/ Loan Growth Deposit Growth Credit Quality Customer Service Strategic expansion of C&I lendingPrice “smart”, defend NIM through disciplined growth Maintain disciplineExpand portfolio management capabilities Open three new branchesLaunch online
Slide 8: 1Q'18 Highlights
1Q’18 Highlights Profitability Growth Stability $4.6 million Net Income1.03% Return on Average Assets 11.35% Return on Equity$21.12 Tangible Book Value $1.6 billion of gross loans, 9% growth year over year$1.4 billion of deposits, 7% growth year over year3 new branches on track to open in 2Q’18$12.7
Slide 9: Consolidated Statement of Income
Consolidated Statement of Income 1Q’18 4Q’17 1Q’17Total Interest Income $18.6 $18.7 $16.4Total Interest Expense $4.9 $4.8 $3.5Net Interest Income $13.7 $13.9 $12.9(Credit) / Provision for Loan Losses $0.0 $(0.5) $0.5Net Interest Income after Provision $13.7 $14.4 $12.4Non Interest Income $1.3 $1.5 $
Slide 10: Financial Snapshot
Financial Snapshot Dollars in thousands, except per share data 2014 2015 2016 2017 1Q’18 Total assets $1,099,531 $1,330,372 $1,628,919 $1,796,607 $1,831,243 Net loans $915,981 $1,129,748 $1,343,895 $1,520,879 $1,534,565 Loans to deposits 110.7% 109.1% 105.6% 110.1% 108.7% Efficiency ratio 68.7% 62.3
Slide 11: Financial Performance Trends
Financial Performance Trends Net IncomeCAGR 42% RevenueCAGR 17% EPS $0.78 $1.21 $1.62 $1.78 $0.59Efficiency Ratio 68.7% 62.3% 56.5% 54.9% 62.0%NIM 3.84% 3.77% 3.54% 3.30% 3.15% 1 Several one-time items contributed to a $0.26 reduction in reported 4Q’17 EPS; on a “core” basis, 2017 EPS is $2.03, plea
Slide 12: Loan Portfolio
Loan Portfolio CAGR 17% $MMs $1,543 $1,366 $1,148 $930 $1,556
Slide 13: Loan Portfolio Concentration
Loan Portfolio Concentration Commercial Real Estate Total Loan Portfolio Consumer/ Other 1 1 Includes Owner Occupied CRE March 2018 Product & Property Type Diversification
Slide 14: Loan Portfolio Concentration: CRE
Loan Portfolio Concentration: CRE Geography Distribution Measured Approach To ExpansionFollowing Existing Customers To New Locations CRE to Risk Based Capital Ratio Proven track record as CRE LenderStrong risk management practices in placeDeveloped rigorous suite of risk management reports, enabling
Slide 15: Asset Quality
Asset Quality 1 Negative values represent Net Recoveries Net Charge Offs to Total Loans1 NPAs $4.31 $5.04 $3.21 $5.48 $20.86 $MMs NPA to Total Assets 1Q’18 uptick in non-performing loans driven by two specific loansVarious pathways to repayment under consideration – update in 2Q
Slide 16: Deposits
Deposits CAGR 18% $MMs $835 $1,047 $1,289 $1,398 $1,427
Slide 17: Deposit Initiatives
Deposit Initiatives Targeting the 12 municipalities in Bankwell’s existing footprint$2+ billion of annual budgets represent large potential banking opportunities in footprint alone Targeted Professional Services campaign focusing on Attorneys, CPAs, Medical & Non-Profits, Property ManagersTreasury M
Slide 18: Management Team
Management Team Name Years Experience Selected Professional Biography Christopher GrusekePresident & CEO(since 2015) 25+ Founding investor of Bankwell’s precursor, Bank of New Canaan, member of BoD and ALCO Committee 2009 to 201220 year Investment Banking career focused on financial institutions, se
Slide 19: Thank You & Questions
Ke Thank You & Questions
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