Bankwell Financial Group, Inc. · NASDAQ:BWFG
Bankwell Financial — Q1 2022 Earnings Presentation
28 slides from Bankwell Financial's earnings presentation, Apr 27, 2022
Slide 1: 1Q22 Investor Presentation
BWFG | LISTED | NASDAQ 1Q22 Investor Presentation April 27th, 2022
Slide 2: Safe Harbor
2 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 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 s
Slide 3: Table of Contents
3 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Table of Contents • 1Q22 Performance • Trends • ALLL & Non-Performing Loans • Loan Portfolio • Capital • Bankwell History & Overview
Slide 4: 1Q22 Performance
BWFG | LISTED | NASDAQ 1Q22 Performance
Slide 5: 1Q22 Summary
5 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 1Q22 Summary • Record net income of $8.21 million, or $1.04 earnings per share • Return on Average Assets and Return on Average Equity were 1.35% and 16.05%, respectively • Pre-tax, pre-provision net revenue (“PPNR”)1 of $10.54 million, or 1.73% PPNR ROAA • Lo
Slide 6: 1Q22 Results
6 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 1Q22 Results 1 Ratios presented represent Bank ratios; presented ratios are preliminary, subject to finalization of the FDIC Call Report 2 Bankwell meets Adequate + buffer standard, which exceeds Well Capitalized thresholds Profitability Balance Sheet Capital
Slide 7: Income Statement 1Q22 vs 4Q21
7 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Income Statement 1Q22 4Q21 Var1 Total Interest Income $22.3 $21.9 $0.4 Total Interest Expense $2.8 $3.0 $(0.2) Net Interest Income $19.5 $18.9 $0.6 Non-Interest Income $1.0 $0.8 $0.1 Non-Interest Expense $9.9 $9.7 $(0.2) Pre-Tax, Pre-Provision Net Revenue $10.
Slide 8: Income Statement 1Q22 vs 1Q21
8 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Income Statement 1Q22 1Q21 Var1 Total Interest Income $22.3 $18.8 $3.5 Total Interest Expense $2.8 $4.1 $1.3 Net Interest Income $19.5 $14.7 $4.9 Non-Interest Income $1.0 $2.0 $(1.0) Non-Interest Expense $9.9 $9.7 $(0.3) Pre-Tax, Pre-Provision Net Revenue $10.
Slide 9: Trends
3, Bankwell A FINANCIAL GROUP Trends BWFG | LISTED | NASDAQ
Slide 10: Performance Trends
10 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Performance Trends $1.78 $2.21 $2.31 $0.75 $3.36 $1.04 2017 2018 2019 2020 2021 1Q22 Diluted EPS 0.80% 0.94% 0.97% 0.28% 1.17% 1.35% 2017 2018 2019 2020 2021 1Q22 Return on Average Assets 8.93% 10.19% 10.20% 3.35% 13.86% 16.05% 2017 2018 2019 2020 2021 1Q22 R
Slide 11: Net Interest Margin
11 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Net Interest Margin 3.30% 3.18% 3.03% 2.77% 3.17% 3.30% 2017 2018 2019 2020 2021 1Q22 Net Interest Margin 1.08% 1.42% 1.75% 1.20% 0.67% 0.51% 0.93% 1.30% 1.66% 1.07% 0.54% 0.42% 2017 2018 2019 2020 2021 1Q22 Cost of Funds / Deposits Cost of Funds Cost of Depo
Slide 12: Loan Trends
12 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Loan Trends $1,107 $1,168 $1,202 $1,182 $1,235 $1,241 $436 $436 $402 $444 $660 $744 $1,543 $1,605 $1,604 $1,626 $1,895 $1,985 2017 2018 2019 2020 2021 1Q22 Loan Balances All Other C&I + CRE Owner Occupied 1Q22 Loan Mix 1Q22 Portfolio Yield by Vintage1 C&I + C
Slide 13: Deposit Trends
13 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 11.5% 12.8% 14.8% 18.8% 19.1% 4Q18 4Q19 4Q20 4Q21 1Q22 Deposit Trends 18.5% 16.2% 12.4% 14.1% 15.9% 1 1 Core Deposits include Commercial and Consumer checking, savings and money market accounts 2 Wholesale Funding ratio defined as brokered deposits and FHLB b
Slide 14: Non Interest Expense
14 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Non Interest Expense Full year 2022 Efficiency Ratio expected to improve versus 2021 despite anticipated Fed rate hikes 1.93% 1.90% 2.03% 1.75% 1.63% 2018 2019 2020 2021 1Q22 Non Interest Expense / Avg Assets 59.2% 60.2% 73.9% 53.9% 48.5% 2018 2019 2020 2021
Slide 15: ALLL & Non-Performing Loans
BWFG | LISTED | NASDAQ ALLL & Non-Performing Loans
Slide 16: Non Performing Loans
16 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Non Performing Loans 0.66% 2.06% 0.88% 0.79% 2019 2020 2021 1Q22 Non Performing Loans / Gross Loans NPLs $10,588 $33,416 $16,587 $15,745 0.47% 0.18% 0.14% 1Q22 Detail 0.79% SBA-guaranteed portion of NPLs All other NPLs NPL population adequately collateralized
Slide 17: Allowance for Loan Loss Walk
17 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 0.74% 0.72% 0.15% $(0.9) million $1.2 million $(0.1) million 0.14% 2021 Improving Economic Factors Asset Growth / Mix Specifics 1Q22 General Specific 1Q22 ALLL Coverage Allowance for Loan Loss (“ALLL”) Walk 0.89% 0.86% • Improving Economic Factors reflect rel
Slide 18: Loan Portfolio
BWFG | LISTED | NASDAQ Loan Portfolio
Slide 19: Total CRE Portfolio by Property Type
19 BWFG LISTED NASDAQ BWFG LISTED NASDAQ CT 44% NY 19% NJ 11% All Other 26% Retail 29.11% Office 21.64% Healthcare 19.36% MultiFamily 9.55% Industrial Warehouse 7.96% Mixed Use 5.38% Other 3.65% Special Use 3.36% • Property Type mix continues to show well diversified exposure • ~ 52% of all CRE loan
Slide 20: C&I Loan Portfolio
20 BWFG LISTED NASDAQ BWFG LISTED NASDAQ C&I Loan Portfolio Loans by Industry Type Total C&I Portfolio = $370 million • Limited leverage loan exposure of $34 million as of 3/31/22, ~2% of total loans • Lines of Credit are primarily uncommitted lines Finance 23% Insurance (Primarily Brokers) 37% Heal
Slide 21: Capital
BWFG | LISTED | NASDAQ Capital
Slide 22: Tangible Book Value
22 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Tangible Book Value • AOCI: $1.10 favorable change from mark-to-market on long-dated interest rate swaps offset by ($0.47) unfavorable change from AFS investment portfolio • Repurchased 112,829 shares at an average price of $34.01 during the quarter 1 Misc in
Slide 23: Capital Position
23 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Capital Position 8.13% 9.94% 11.18% 12.00% 8.32% 9.80% 11.20% 12.00% 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 ita l 1Q22 4Q21 ‘Adequate’ + Buffe
Slide 24: History & Overview
BWFG | LISTED | NASDAQ History & Overview
Slide 25: Attractive Core Market
25 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Bankwell operates in an attractive core market: • Third 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 • MSA ranked 12th most educated overall, tied for 1st with the highest percentage of
Slide 26: Financial Snapshot
26 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Financial Snapshot 2017 2018 2019 2020 2021 1Q22 Total assets $1,796,607 $1,873,665 $1,882,182 $2,253,747 $2,456,264 $2,496,877 Net loans $1,520,879 $1,586,775 $1,588,840 $1,601,672 $1,875,167 $1,964,567 Loan-to-deposit ratio 110.1% 106.4% 107.1% 87.9% 88.8%
Slide 27: Management Team
27 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Name Years Experience Selected Professional Biography Christopher Gruseke Chief Executive Officer Director (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
Slide 28: Thank You & Questions
BWFG | LISTED | NASDAQ Thank You & Questions
Bankwell Financial Group — Q1 2022 Earnings Presentation on 6ix