Bankwell Financial Group, Inc. · NASDAQ:BWFG
Bankwell Financial — Q4 2021 Earnings Presentation
28 slides from Bankwell Financial's earnings presentation, Jan 26, 2022
Slide 1: 4Q21 Investor Presentation
BWFG | LISTED | NASDAQ 4Q21 Investor Presentation January 26th, 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 • 4Q21 & 2021 Performance • Trends • ALLL & Non-Performing Loans • Loan Portfolio • Capital • Bankwell History & Overview
Slide 4: 4Q21 & 2021 Performance
BWFG | LISTED | NASDAQ 4Q21 & 2021 Performance
Slide 5: Summary
5 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Summary • Record net income of $7.81 million, or $0.99 earnings per share for the quarter, and $26.59 million, or $3.36 earnings per share for the full year • Return on Average Assets and Return on Average Equity were 1.32% and 15.44%, respectively for the qua
Slide 6: Results
6 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 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.
Slide 7: Income Statement and Balance Sheet 4Q21 vs 3Q21
7 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Income Statement 4Q21 3Q21 Var1 Total Interest Income $21.9 $20.6 $1.3 Total Interest Expense $3.0 $2.9 $(0.1) Net Interest Income $18.9 $17.7 $1.2 Non-Interest Income $0.8 $1.4 $(0.6) Non-Interest Expense $9.7 $10.4 $0.7 Pre-Tax, Pre-Provision Net Revenue $10
Slide 8: Income Statement 2021 vs 2020
8 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Income Statement 2021 2020 Var1 Total Interest Income $81.4 $77.5 $3.9 Total Interest Expense $13.5 $22.7 $9.2 Net Interest Income $67.9 $54.8 $13.1 Non-Interest Income2 $5.7 $2.9 $2.8 Non-Interest Expense3 $39.7 $42.8 $3.1 Pre-Tax, Pre-Provision Net Revenue $
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 $18.98 $20.59 $22.06 $23.15 $22.43 $26.19 2016 2017 2018 2019 2020 2021 Tangible Book Value $1.62 $1.78 $2.21 $2.31 $0.75 $3.36 2016 2017 2018 2019 2020 2021 Diluted EPS 0.85% 0.80% 0.94% 0.97% 0.28% 1.17% 2016 2017 2018 2019 2020 2021 Retu
Slide 11: Net Interest Margin
11 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Net Interest Margin 3.54% 3.30% 3.18% 3.03% 2.77% 3.17% 2016 2017 2018 2019 2020 2021 Net Interest Margin • 4Q21 NIM of 3.43% • NIM run rate to moderate in 2022, subject to Fed actions 0.91% 1.08% 1.42% 1.75% 1.20% 0.67% 0.73% 0.93% 1.30% 1.66% 1.07% 0.54% 20
Slide 12: Loan Trends
12 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Loan Trends $995 $1,107 $1,168 $1,202 $1,182 $1,235 $371 $436 $436 $402 $444 $660 $1,366 $1,543 $1,605 $1,604 $1,626 $1,895 2016 2017 2018 2019 2020 2021 Loan Balances All Other C&I + CRE Owner Occupied 4Q21 Loan Mix 4Q21 Portfolio Yield by Vintage1 C&I + CRE
Slide 13: Deposit Trends
13 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 11.5% 12.8% 14.8% 15.1% 16.9% 18.0% 18.8% 4Q18 4Q19 4Q20 1Q21 2Q21 3Q21 4Q21 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 broker
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% 2018 2019 2020 2021 Non Interest Expense / Avg Assets 59.2% 60.2% 73.9% 53.9% 2018 2019 2020 2021 Efficiency Ratio
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 0.88% 0.66% 2.06% 0.88% 2018 2019 2020 2021 Non Performing Loans / Gross Loans NPLs $14,082 $10,588 $33,416 $16,587 0.47% 0.20% 0.21% 2021 Detail 0.88% 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 0.98% 0.74% 0.31% $(4.6) million $2.6 million ($2.2 million) 0.15% 2020 Improving Economic Factors Asset Growth / Mix Specifics 2021 General Specific 2021 ALLL Coverage Allowance for Loan Loss (“ALLL”) Walk 1.29% 0.89% • Bankwell not subject to CECL; ALLL cal
Slide 18: Loan Portfolio
BWFG | LISTED | NASDAQ Loan Portfolio
Slide 19: Diversified CRE Portfolio
19 BWFG LISTED NASDAQ BWFG LISTED NASDAQ CT 47% NY 20% NJ 6% All Other 27% Industrial Warehouse 8.5% Mixed Use 5.0% MultiFamily 10.8% Office 21.9% Other 3.5% 1-4 Family Investment 1.3% Retail 29.8% Special Use 3.6% Healthcare & Social Assistance 15.6% • Property Type mix continues to show well diver
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 = $351 million • Minimal exposure to the following industries (each industry < $5 million) : ̶ Accommodation & Food Services ̶ Transportation / Airlines • No exposure to the Energy or Hotel industr
Slide 21: Capital
BWFG | LISTED | NASDAQ Capital
Slide 22: Tangible Book Value
22 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Tangible Book Value Tangible Book Value (TBV) Per Share Walk • $0.90 increase in OCI primarily from mark-to-market on long-dated interest rate swaps • As of January 23, 2022 the mark-to-market would increase TBV by an additional ~$0.30 • Repurchased 190,770 s
Slide 23: Capital Position
23 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Capital Position 8.70% 9.61% 10.59% 11.44% 8.13% 9.94% 11.18% 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 4Q21 3Q21 ‘Adequate’ + Buffe
Slide 24: History & Overview
BWFG | LISTED | NASDAQ History & Overview
Slide 25: Bankwell's 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 2016 2017 2018 2019 2020 2021 Total assets $1,628,919 $1,796,607 $1,873,665 $1,882,182 $2,253,747 $2,456,264 Net loans $1,343,895 $1,520,879 $1,586,775 $1,588,840 $1,601,672 $1,875,167 Loan-to-deposit ratio 105.6% 110.1% 106.4% 107.1% 87.9%
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
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