Bankwell Financial Group, Inc. · NASDAQ:BWFG
Bankwell Financial — Q2 2018 Earnings Presentation
22 slides from Bankwell Financial's earnings presentation, Jul 26, 2018
Slide 1: Bankwell Financial Group 2Q'18 Investor Presentation
Bankwell Financial Group2Q’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 and Milestones
Bankwell MILESTONESAssets 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 t
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 $1.87B asset Connecticut-based bank with focus on CRE and C&I lending12 existing branches in Fairfield & New Haven Counties Company Overview NASDAQ: BWFG $158MM deposits per branch, highest in Fairfield & New Haven Counties1Attractive core market of Fairfield County / Bridgeport-Sta
Slide 6: Why Bankwell?
Why Bankwell? Consistently strong performer in highly attractive markets 1 as of June 29th, 20182 as of June 30th, 2018
Slide 7: Strategic Priorities
Strategic Priorities Balance Sheet Diversification/ Loan Growth Deposit Growth Credit Quality M&A Opportunities Strategic expansion of C&I lendingPrice “smart”, defend NIM through disciplined growth Maintain disciplineExpand portfolio management capabilities Open three new branchesLaunch online depo
Slide 8: 2Q'18 Highlights
2Q’18 Highlights Profitability Growth Stability $4.7 million Net Income1.03% Return on Average Assets 11.28% Return on Equity$21.56 Tangible Book Value $1.6 billion of gross loans, 7% growth year over year$1.5 billion of deposits, 4% growth year over yearOpened 3 new branches in June$12.7MM of asset
Slide 9: 2Q Consolidated Statement of Income
2Q Consolidated Statement of Income 2018 2017 VTotal Interest Income $19.4 $17.7 $1.7Total Interest Expense $5.5 $4.0 $1.5Net Interest Income $13.9 $13.6 $0.3Provision for Loan Losses $0.3 $0.9 $(0.6)Net Interest Income after Provision $13.6 $12.7 $0.9Non Interest Income $1.1 $1.0 $0.1Non Interest E
Slide 10: 2Q YTD Consolidated Statement of Income
2Q YTD Consolidated Statement of Income 2018 2017 VTotal Interest Income $38.0 $34.1 $3.9Total Interest Expense $10.4 $7.5 $2.9Net Interest Income $27.6 $26.6 $1.0Provision for Loan Losses $0.3 $1.4 $(1.1)Net Interest Income after Provision $27.3 $25.2 $2.1Non Interest Income $2.4 $2.3 $0.2Non Inter
Slide 11: Financial Snapshot
Financial Snapshot Dollars in thousands, except per share data 2014 2015 2016 2017 1Q’18 2Q’18 Total assets $1,099,531 $1,330,372 $1,628,919 $1,796,607 $1,831,243 $1,870,802 Net loans $915,981 $1,129,748 $1,343,895 $1,520,879 $1,534,565 $1,572,591 Loans to deposits 110.7% 109.1% 105.6% 110.1% 108.7%
Slide 12: Financial Performance Trends
Financial Performance Trends Net IncomeCAGR 40% RevenueCAGR 16% EPS $0.78 $1.21 $1.62 $1.78 $1.19Efficiency Ratio 68.7% 62.3% 56.5% 54.9% 60.1%NIM 3.84% 3.77% 3.54% 3.30% 3.15% 1 4Q’17 EPS reduced by $0.26 due to the impact of the Tax Cut and Jobs Act passed in December 2017 along with several other
Slide 13: Loan Portfolio
Loan Portfolio CAGR 17% $1,543 $1,366 $1,148 $930 $1,556 $1,594 Dollars in millions
Slide 14: Loan Portfolio
Loan Portfolio Team of 10 skilled credit analysts, most with > 10 years’ experienceStrong risk management practices in placeDeveloped rigorous suite of risk management reports, enabling multi-level portfolio stratificationProven track record as CRE Lender
Slide 15: CRE Loan Portfolio
CRE Loan Portfolio Retail Composition $ % Retail2 $165 54.86% Grocery $76 25.29% Pharmacy $28 9.15% Restaurant $16 5.39% Gas / Auto Services $16 5.31% Total Retail $301 100.00% Fairfield County, CT exposure is $82MM, 27% of total RetailAverage deal size is $2.1MM Office Composition $ % Office (prima
Slide 16: Geography Distribution and Measured Approach to Expansion
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 place 1 1 Includes Owner Occupied CRE CRE Loan Portfolio
Slide 17: Asset Quality
Asset Quality NPAs $4.31 $5.04 $3.21 $5.48 $20.86 $23.33 $MMs NPA to Total Assets Update on the 2 recent NPAsNPA #1$4MM loan fully paid off (subsequent to quarter-end)BWFG recovered 100% principal plus default interest and expensesAll else equal, NPA / Total Assets would have been 1.04% for 2Q, excl
Slide 18: Deposits
Deposits CAGR 17% $835 $1,047 $1,289 $1,398 $1,427 $1,466 Dollars in millions
Slide 19: Deposit Market Share
Deposit Market Share Deposit Market Share Location 2013 2014 2015 2016 2017 New Canaan 19.77% 22.71% 24.40% 29.59% 31.10% Fairfield 5.95% 7.65% 6.38% 7.58% 9.18% Stamford 1.99% 2.84% 2.00% 1.92% 2.28% Wilton 6.26% 6.87% 7.76% 9.85% 13.81% Norwalk not applicable 1.44% 1.97% 2.92% Fairfield County 1.5
Slide 20: 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 21: 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 22: Thank You & Questions
Ke Thank You & Questions
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