Bankwell Financial Group, Inc. · NASDAQ:BWFG
Bankwell Financial — Investor Presentation (January 2020)
13 slides from Bankwell Financial's investor presentation, Jan 15, 2020
Slide 1: Bankwell Financial Group Analyst Meeting
Bankwell Financial Group Analyst Meeting January 15th, 2020 All 2019 numbers, metrics and related references are unaudited
Slide 2: Safe Harbor
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 cur
Slide 3: Agenda
Agenda 1) Loan portfolio trends 2) Deposit mix & pricing trends 3) Net Interest Margin trends 4) Loan sale trends 5) Credit update 3 All 2019 numbers, metrics and related references are unaudited
Slide 4: Loan portfolio: Loan Volume and Originations
1) Loan portfolio trends Dollars in millions Loan Volume $409 Originations • Fueled by strong originations in Fundings 4Q19, loan balances grew $40 $311 $308 $312 million, or +10% annualized growth $211 $216 • The incremental impact of the $40 million loan growth on 2020 core earnings is ~$0.12 EPS
Slide 5: Loan Portfolio Yields
1) Loan portfolio trends Dollars in millions Loan Portfolio Yields • Bankwell committed to disciplined loan $1,800 5.00% pricing to defend portfolio yield 4.48% 4.64% 4.58% $1,700 4.38% 4.50% $1,605 $1,604 • 2019 originations at a ~4.90% yield, $1,600 $1,543 4.00% with 4Q19 originations yields of $1
Slide 6: Loan Prepayments
1) Loan portfolio trends Dollars in millions Loan Prepayments $184 • 2019 reflects largest prepayment amounts $33 and fees in Bankwell’s history $119 $27 • Prepayment fees vary from loan to loan 4Q $62 $71 and are subject to deal terms and age of loan 3Q $17 • 2020 assumes prepayments and related 2Q
Slide 7: Deposit Mix and Treasury Management Balances
2) Deposit mix & pricing trends Dollars in millions Deposit Mix Treasury Management Balances1 2018 2019 $108 11.5% 12.8% $83 $70 $71 $53 88.5% 87.2% Non Int Bearing Int Bearing Wholesale 23.4% ~20.5% Ratio1 2015 2016 2017 2018 2019 • 2019 core deposits reached $1.25 billion, a record high • Treasury
Slide 8: Cost of Deposits
2) Deposit mix & pricing trends Cost of Deposits • Liability-sensitive balance sheet well 1.66% positioned to capture benefits of 1 ≤ 1.50% lower short-term rates 1.30% 0.93% • Lowered rates on Money Market, Savings and Retail CDs in September 2019 & December 2019 • The carry-through impact of the 2
Slide 9: Net Interest Margin Components
3) Net Interest Margin trends Net Interest Margin Components • 2019 Net interest Margin Expressed as % of total earning assets (“NIM”) contracted primarily due to increased funding costs 2018 A 2019 A 2020 E • 2019 contraction tempered by Income on Earning Assets ~4.51% ~4.67% ~4.50% record-high loa
Slide 10: Gains on SBA Loan Sales
4) Loan sale trends Dollars in millions Gains on SBA Loan Sales • Continued focus on Bankwell’s SBA program driving income $1.7 from loan sales $0.4 • Lower than average gains in 4Q19 impacting the quarter $1.0 by ~($0.01) EPS $0.7 4Q $0.1 3Q $0.2 • Continued growth from SBA program anticipated in 2
Slide 11: Credit Update: Non Performing Loans
5) Credit update Dollars in thousands Non Performing Loans / Gross Loans 0.66% 0.88% SBA-guaranteed 0.29% portion of NPLs 0.66% 0.36% 0.37% Core NPL exposure 2017 2018 2019 $000s NPLs $5,481 $14,082 $10,588 Quarry Loans1 $0 $6,943 $1,863 2019 Detail • The Quarry Loans1 credit issue from 2018 is esse
Slide 12: Credit Update: Impact of ALLL Methodology Change
5) Credit Update Dollars in millions • The allowance for loan loss (“ALLL”) methodology was updated in 2017 to 1 Impact of ALLL Methodology Change include peer group historical loss data, Annual impact on BWFG’s Loan Loss Provision due to increasing reliance on quantitative 2017 methodology change a
Slide 13: Thank You & Questions
Thank You & Questions All 2019 numbers, metrics and related references are unaudited
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