Bankwell Financial Group, Inc. · NASDAQ:BWFG
Bankwell Financial — Q2 2021 Earnings Presentation
28 slides from Bankwell Financial's earnings presentation, Jul 28, 2021
Slide 1: Bankwell Financial Group 2Q21 Investor Presentation
Bankwell Financial Group 2Q21 Investor Presentation
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 • 2Q21 Performance • Trends • ALLL & Non-Performing Loans • Loan Portfolio • Capital • Bankwell History & Overview
Slide 4: 2Q21 Performance
2Q21 Performance
Slide 5: 2Q21 Summary
5 2Q21 Summary • $6.23 million reported net income, or $0.79 earnings per share • Pre-tax, pre-provision net revenue (“PPNR”)1 of $7.97 million; 77% year-over-year increase • Operating Expenses of $10.1 million include $0.8 million of non-recurring items ̶ 2Q21 Efficiency Ratio at 55.7%, year-to-dat
Slide 6: 2Q21 Results
6 2Q21 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 • $1.7 billion of gross loans • $1.9 b
Slide 7: 2Q21 Consolidated Financial Statements: Linked Quarter Income Statement
7 2Q21 Consolidated Financial Statements Linked Quarter Income Statement 2Q21 1Q21 Var1 Total Interest Income $20.1 $18.8 $1.3 Total Interest Expense $3.5 $4.1 $0.6 Net Interest Income $16.6 $14.7 $1.9 Non-Interest Income2 $1.4 $2.0 $(0.5) Non-Interest Expense $10.1 $9.6 $(0.4) Pre-Tax, Pre-Provisio
Slide 8: 2Q21 YTD Consolidated Income Statement
8 Income Statement 2Q21 YTD 2Q20 YTD Var1 Total Interest Income $38.9 $39.4 $(0.5) Total Interest Expense $7.6 $12.5 $4.9 Net Interest Income $31.2 $26.9 $4.3 Non-Interest Income2 $3.4 $1.7 $1.7 Non-Interest Expense $19.7 $19.4 $(0.3) Pre-Tax, Pre-Provision Net Revenue $14.9 $9.2 $5.7 Credit/Provisi
Slide 9: Trends
Trends
Slide 10: Performance Trends
10 Performance Trends $18.98 $20.59 $22.06 $23.15 $22.43 $24.40 2016 2017 2018 2019 2020 2Q21 Tangible Book Value $1.62 $1.78 $2.21 $2.31 $0.75 $1.50 2016 2017 2018 2019 2020 2Q21 YTD Diluted EPS 0.85% 0.80% 0.94% 0.97% 0.28% 1.07% 2016 2017 2018 2019 2020 2Q21 YTD Return on Average Assets 8.94% 8.9
Slide 11: Net Interest Margin
11 Net Interest Margin 3.54% 3.30% 3.18% 3.03% 2.77% 2.93% 2016 2017 2018 2019 2020 2Q21 YTD Net Interest Margin • 2Q21 NIM of 3.12% • Favorable NIM outlook ̶ ~$165 million retail CDs maturing in 2H’21, at 1.59% average rate ̶ Liquidity will normalize by year-end 2021 0.91% 1.08% 1.42% 1.75% 1.20% 0
Slide 12: Loan Trends
12 Loan Trends $995 $1,107 $1,168 $1,202 $1,182 $1,215 $371 $436 $436 $402 $444 $524 $1,366 $1,543 $1,605 $1,604 $1,626 $1,738 2016 2017 2018 2019 2020 2Q21 Loan Balances All Other C&I + CRE Owner Occupied Residential 5.42% C&I 16.10% CRE Owner Occupied 13.89% CRE Investor 58.98% Commercial Const. 4
Slide 13: Deposit Trends
13 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 Percentages exclude COVID-19-related liquidity of $53 million (brokered deposits) 3 Wholesale Funding ratio defined as brokered deposits and FHLB borrowings
Slide 14: Non Interest Expense
14 Non Interest Expense • 2Q Non Interest Expense of $10.1 million include several non-recurring items, including: ̶ Additional $0.4 million related to office consolidation1 ̶ $0.3 million COVID-19 cleaning costs; additional cleaning stopped as of June 30th ̶ $0.1 million net expense related to onli
Slide 15: ALLL & Non-Performing Loans
ALLL & Non-Performing Loans
Slide 16: Non Performing Loans
16 Non Performing Loans 0.88% 0.66% 2.06% 1.87% 1.57% 2018 2019 2020 1Q21 2Q21 Non Performing Loans / Gross Loans NPLs $14,082 $10,588 $33,416 $31,366 $27,329 1.25% 0.18% 0.14% 2Q21 Detail 1.57% SBA-guaranteed portion of NPLs Dollars in thousands All other NPLs • No remaining COVID-19 deferral loans
Slide 17: Allowance for Loan Loss Walk
17 0.98% 0.80% 0.31% ($3.3) million $1.2 million ($2.3 million) 0.16% 2020 Improving Economic Factors Asset Growth / Mix Specifics 2Q21 General Specific 2021 ALLL Coverage Allowance for Loan Loss (“ALLL”) Walk 1.29% 0.96% • Bankwell not subject to CECL; ALLL calculated in accordance with the incurre
Slide 18: Loan Portfolio
Loan Portfolio
Slide 19: CRE Loan Portfolio
19 CT 55%NY 18% NJ 6% All Other 21% Industrial Warehouse 8.76% Mixed Use 5.53% MultiFamily 11.74% Office 25.37%Other 12.88% 1-4 Family Investment 1.48% Retail 31.60% Special Use 2.64% CRE Loan Portfolio 1 • Property Type mix continues to show well diversified exposure • ~ 50% of all CRE loan balance
Slide 20: C&I Loan Portfolio
20 C&I Loan Portfolio Loans by Industry Type Total C&I Portfolio = $280 million Finance 26% Insurance (Primarily Brokers) 30% Wholesale 7% Professional, Sci & Tech Services 6% Arts, Entertainment & Recreation 6% Health Care & Social Assistance 5% Retail Trade 5% Information 3% All Other 12% • Minima
Slide 21: Capital
Capital
Slide 22: Tangible Book Value
22 Tangible Book Value Tangible Book Value (TBV) Per Share Walk • $0.69 increase in OCI primarily from mark-to-market on long-dated interest rate swaps • Repurchased 79,155 shares at an average price of $22.68 per share as of June 30th, 2021 • 52,277 additional shares repurchased in July (through th
Slide 23: Capital Position
23 Capital Position 8.27% 8.82% 11.02% 12.17% 8.30% 9.19% 10.95% 11.84% 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 2Q21 1Q21 ‘Adequate’ + Buffer Min Bankwell’s capital position rema
Slide 24: Bankwell History & Overview
Bankwell History & Overview
Slide 25: Company Overview
25 + 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 • 10 existing branches in Fairfield & New Haven Counties • BWFG has $136 million deposits per branc
Slide 26: Financial Snapshot
26 Financial Snapshot Dollars in thousands, except per share data 2016 2017 2018 2019 2020 2Q21 YTD Total assets $1,628,919 $1,796,607 $1,873,665 $1,882,182 $2,253,747 $2,269,825 Net loans $1,343,895 $1,520,879 $1,586,775 $1,588,840 $1,601,672 $1,719,274 Loan-to-deposit ratio 105.6% 110.1% 106.4% 10
Slide 27: Experienced Leadership Team
27 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 28: Thank You & Questions
x Thank You & Questions
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