Bankwell Financial Group, Inc. · NASDAQ:BWFG
Bankwell Financial — Q1 2019 Earnings Presentation
24 slides from Bankwell Financial's earnings presentation, Apr 24, 2019
Slide 1: Bankwell Financial Group 1Q19 Investor Presentation
Bankwell Financial Group 1Q19 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: 1Q19 Performance
1Q19 Performance
Slide 4: 1Q19 Highlights
1Q19 Highlights • Reported Net Income of $5.1 million, or $0.65 earnings per share • The orderly resolution of the “Quarry Loans”1 progressing according to plan • Loan originations remain strong at $93 million • Loan growth impacted by elevated prepayments • Net Interest Margin (“NIM”) benefiting fr
Slide 5: 1Q19 Results
1Q19 Results • $5.1 million Net Income • 1.10% Return on Average Assets Profitability • 11.60% Return on Average Equity • $22.38 Tangible Book Value • $1.6 billion of gross loans, 3% growth year over year Growth • $1.5 billion of deposits, 7% growth year over year • $13 million of assets per FTE • 1
Slide 6: 1Q Consolidated Statement of Income
1Q Consolidated Statement of Income 1 Dollars in millions 2019 2018 QoQ Notes Total Interest Income $21.5 $18.6 $2.9 Net Interest Income Total Interest Expense $7.2 $4.9 $2.3 • Loan growth year over year along with incremental fees from Net Interest Income $14.3 $13.7 $0.6 prepayments driving favora
Slide 7: 1Q Consolidated Balance Sheet
1Q Consolidated Balance Sheet 1 Dollars in millions 1Q19 4Q18 V Cash & Cash Equivalents $94 $78 $15 Investment Securities $120 $117 $3 Loans Receivable, net $1,579 $1,587 $(8) All Other Assets $106 $92 $14 Total Assets $1,898 $1,874 $24 Total Deposits $1,521 $1,502 $19 FHLB Advances & Other Borrowin
Slide 8: Financial Performance Trends
Financial Performance Trends Net Income $59.0 $60.2 • Rising deposit costs increase Revenue pressure on NIM $51.8 $46.3 • 1Q19 NIM is benefitting from fees associated with elevated $34.7 loan prepayments, including just under $1.0 million in fees recognized as a result of one $15.6 lending relations
Slide 9: Loan Pricing Trends
Loan Pricing Trends Dollars in millions Total Loan Portfolio $1,800 4.66% 5.00% 4.48% 4.64% 4.38% 4.50% $1,700 $1,605 $1,596 4.00% $1,600 $1,543 3.50% $1,500 3.00% Loan Balance $1,400 $1,366 2.50% 1 Portfolio Yield 2.00% $1,300 1.50% $1,200 1.00% $1,100 0.50% $1,000 0.00% 2016 2017 2018 1Q19 Current
Slide 10: Loan Volume Trends
Loan Volume Trends Dollars in millions Loan Volume • 2018 volume includes 1Q originations of $55 million, $424 with $28 million of $400 $402 fundings, reflecting pricing discipline during a period $321 $307 $306 $308 of disproportionate competition $211 • By 4Q18, originations rebounded to $94 milli
Slide 11: Bankwell Overview
Bankwell Overview
Slide 12: Bankwell's Story
Bankwell’s Story Bankwell is one of the fastest growing and most profitable community banks in Connecticut. BANKWELL MILESTONES $1,897,758 $1,873,665 ASSETS $1,628,919 $1,099,531 $779,618 $395,708 $247,041 $190,906 Dollars in thousands in Dollars $0 2002 2007 2008 2010 2013 2014 2016 2018 1Q19 Found
Slide 13: Bankwell Profile
Bankwell Profile Company Overview NASDAQ: BWFG • $1.90B asset Connecticut-based bank with focus on CRE and C&I lending • 12 existing branches in Fairfield & New Haven Counties • $162MM deposits per branch, excluding the 3 new branches opened in 2018; highest in Fairfield & New Haven Counties1 • Attr
Slide 14: Why Bankwell?
Why Bankwell? • Proven track record of quality loan originations Growth • Tangible Book Value growth of 37% since 2014 IPO • Operates in premiere markets • Strong credit culture; prudent, conservative credit standards Risk • Historically low NPLs / NPAs with low charge-offs Management • Diverse prod
Slide 15: Portfolio Metrics
Portfolio Metrics
Slide 16: Financial Snapshot
Financial Snapshot Dollars in thousands, except per share data 2014 2015 2016 2017 1 2018 1Q19 Total assets $1,099,531 $1,330,372 $1,628,919 $1,796,607 $1,873,665 $1,897,758 Net loans $915,981 $1,129,748 $1,343,895 $1,520,879 $1,586,775 $1,578,609 Loans to deposits 110.7% 109.1% 105.6% 110.1% 106.4%
Slide 17: Loan Portfolio
Loan Portfolio Dollars in millions $1,605 $1,800 $1,543 $1,596 $71 $1,600 $1,366 $165 $1,400 $1,148 $163 $1,200 $930 $1,000 $935 $800 $600 $400 $89 $174 $200 $0 2014 2015 2016 2017 2018 1Q19 Residential Mortgages/Consumer (CAGR -3%) Construction (CAGR 8%) Commercial Mortgage (CAGR 23%) Commercial Mo
Slide 18: Loan Portfolio
Loan Portfolio Consumer Loans / Other 0.70% Commercial Const. Residential • Portfolio oversight 5.58% 10.17% provided by team of 15 skilled credit analysts and portfolio managers, most with > 20 years’ C&I 15.90% experience • Concentration actively managed, with no single relationship representing m
Slide 19: CRE Loan Portfolio
CRE Loan Portfolio 1 Dollars in millions Industrial Special Use Warehouse 3.22% Retail Composition $ % 10.95% Retail2 $180 59.06% Grocery $71 23.12% Retail 26.28% Mixed Use 12.99% Pharmacy $27 8.89% Gas / Auto Services $14 4.54% Restaurant $13 4.39% Total Retail $305 100.00% • Average deal size is $
Slide 20: CRE Loan Portfolio Geography
CRE Loan Portfolio 1 Geography Distribution CRE to Risk Based Capital Ratio MA 480% TX GA 1.38% 471% 470% 1.49% 1.63% All Other 440% PA 8.77% 2.07% NY 14.28% CT 70.37% 2016 2017 2018 1Q19 • Proven track record as CRE Lender with strong risk management practices in place • Continued focus in primary
Slide 21: Deposits
Deposits Dollars in millions $1,502 $1,521 $1,600 $1,398 $1,289 $1,400 $1,047 $650 $1,200 $1,000 $835 $800 $469 $600 $400 $179 $224 $200 $0 2014 2015 2016 2017 2018 1Q19 Checking Savings Money Market Time Deposits 21
Slide 22: Deposit Market Share
Deposit Market Share Growing deposit share in very competitive markets Deposit Market Share Location 2013 2014 2015 2016 2017 2018 New Canaan 19.77% 22.71% 24.40% 29.59% 31.10% 32.44% Wilton 6.26% 6.87% 7.76% 9.85% 13.81% 15.18% Fairfield 5.95% 7.65% 6.38% 7.58% 9.18% 9.14% Norwalk not applicable 1.
Slide 23: Management Team
Management Team Years Name Experience Selected Professional Biography Christopher Gruseke 25+ • Founding investor of Bankwell’s precursor, Bank of New Canaan, member of BoD and ALCO President & CEO Committee 2009 to 2012 (since 2015) • 20 year Investment Banking career focused on financial instituti
Slide 24: Thank You & Questions
ae Thank You & Questions
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