Bankwell Financial Group, Inc. · NASDAQ:BWFG
Bankwell Financial — Q1 2021 Earnings Presentation
27 slides from Bankwell Financial's earnings presentation, Apr 28, 2021
Slide 1: Bankwell Financial Group 1Q21 Investor Presentation
Bankwell Financial Group 1Q21 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 • 1Q21 Performance • 2021 Outlook • ALLL & Non-Performing Loans • Capital • Bankwell History & Overview
Slide 4: 1Q21 Performance
1Q21 Performance
Slide 5: 1Q21 Summary
5 1Q21 Summary • $5.69 million reported net income, or $0.71 earnings per share, including a one-time benefit of $0.09 EPS due to a federal payroll tax credit1 for COVID-19-impacted small businesses, available as part of the Employee Retention Credit (“ERC”) program under the Coronavirus Aid, Relief
Slide 6: 1Q21 Results
6 1Q21 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 • Net Income / EPS $5.7 million / $0.7
Slide 7: 1Q21 Consolidated Financial Statements
7 1Q21 Consolidated Financial Statements Linked Quarter Income Statement 1Q21 4Q20 Var1 Total Interest Income $18.8 $19.1 $(0.4) Total Interest Expense $4.1 $4.8 $0.7 Net Interest Income $14.7 $14.3 $0.4 Non-Interest Income2 $2.0 $0.6 $1.3 Non-Interest Expense $9.6 $13.7 $4.1 Pre-Tax, Pre-Provision
Slide 8: Income Statement and Balance Sheet
8 Income Statement 1Q21 1Q20 Var1 Total Interest Income $18.8 $20.1 $(1.3) Total Interest Expense $4.1 $6.8 $2.7 Net Interest Income $14.7 $13.3 $1.4 Non-Interest Income2 $2.0 $1.1 $0.9 Non-Interest Expense $9.6 $9.7 $0.1 Pre-Tax, Pre-Provision Net Revenue $7.0 $4.7 $2.3 Credit/Provision for Loan Lo
Slide 9: 2021 Outlook
2021 Outlook
Slide 10: 2021 Outlook
10 2021 Outlook Reiterating 2021 outlook: • Provision expense in 2021 to be well below 2020 • Expected loan growth (excluding PPP) of ~5%, with upside potential • Steady loan yields • Continued decrease in funding costs • Full year 2021 NIM expected to be 3.00% - 3.15% • Growth in non-interest incom
Slide 11: Positive Outlook For Cost of Deposits
11 Positive Outlook For Cost of Deposits • Lowered deposit pricing across all products as of March 1st, 2021; on track to deliver or beat prior guidance • Increased noninterest-bearing deposits by $112 million since 1Q20, representing 15% of total deposits compared to 10% at 1Q20 • 2H’21 favorable o
Slide 12: Recent Trends Steadily Improving Deposit Mix
12 Recent Trends Steadily Improving Deposit Mix 2018 2019 2020 1Q21 2Q21 Est Brokered Deposits Retail CDs Core Deposits $1,502 $1,492 Dollars in millions $1,827 ~$1,850 1 Core Deposits include Business and Consumer checking, savings and money market accounts 2 Percentages exclude COVID-19-related li
Slide 13: Core Deposit Composition Expanding Commercial Relationships
13 Core Deposit Composition Expanding Commercial Relationships 1 Core deposits exclude all brokered deposits and all time deposits Dollars in millions 1 39%61% Dec-20 37%63% 1Q21 54% 46% Dec-18Consumer Commercial $369 $377 $372 $396 $409 $393 $461 $584 $725 $788 $156 $147 $142 $162 $178 $154 $198 $2
Slide 14: Loan Portfolio Trends and Yields
14 1 Weighted average yield based on active loans as of 12-31 for each of the respective years & 3-31 for 1Q21 Dollars in millions Loan Portfolio Trends Loan Portfolio Yields excluding PPP loans $1,605 $1,604 $1,591 $1,654 4.64% 4.58% 4.25% 4.26% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00%
Slide 15: Loan Portfolio Composition
15 Loan Portfolio Composition Residential 6.15% C&I 16.00% CRE Owner Occupied 12.26%CRE Investor 58.50% Commercial Const. 6.16% Consumer Loans / Other 0.93% • No single relationship represents more than ~6% of total loans, as of March 31st, 2021 • Improving commercial loan portfolio mix: Total Loan
Slide 16: CRE Portfolio Composition
16 Industrial Warehouse 9.64% Mixed Use 8.86% MultiFamily 8.93% Office 28.48% Other 9.11% 1-4 Family Investment 1.64% Retail 30.50% Special Use 2.83% CRE Portfolio Composition1 • Property Type mix continues to show well diversified exposure • ~ 50% of all CRE loan balances have recourse ̶ Non recour
Slide 17: ALLL & Non-Performing Loans
ALLL & Non-Performing Loans
Slide 18: Non Performing Loans
18 Non Performing Loans Dollars in thousands NPL population adequately collateralized or individually reserved in ALLL 0.88% 0.66% 2.06% 1.87% 2018 2019 2020 1Q21 Non Performing Loans / Gross Loans NPLs $14,082 $10,588 $33,416 $31,366 1.53% 0.19% 0.16% 1Q21 Detail 1.87% SBA-guaranteed portion of NPL
Slide 19: Allowance for Loan Loss (ALLL) Walk
19 0.98% 0.89% 0.31% ($1.4) million $0.4 million $0.6 million 0.34% 2020 Improving Economic Factors Asset Growth / Mix Specifics 1Q21 General Specific 2021 ALLL Coverage Allowance for Loan Loss (“ALLL”) Walk 1.29% 1.23% • Bankwell not subject to CECL; ALLL calculated in accordance with the incurred
Slide 20: Capital
Capital
Slide 21: Tangible Book Value
21 Tangible Book Value Tangible Book Value (TBV) Per Share Walk • Repurchased 65,626 shares at an average price of $21.66 per share • $0.99 increase in OCI primarily from mark-to-market on long-dated interest rate swaps $22.43 $23.99 $0.71 $0.14 $0.99 $0.02 2020 Net Income Dividends AOCI Share Buyba
Slide 22: Capital Position
22 Capital Position 7.73% 8.44% 11.06% 12.28% 8.27% 8.82% 11.02% 12.17% 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 it al 1Q21 4Q20 ‘Adequate’ + Buffer Min Bankwell’s capital position rema
Slide 23: Bankwell History & Overview
Bankwell History & Overview
Slide 24: Company Overview
24 + 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 • 11 existing branches in Fairfield & New Haven Counties • BWFG has $136 million deposits per branc
Slide 25: Financial Snapshot
25 Financial Snapshot Dollars in thousands, except per share data 2016 2017 2018 2019 2020 1Q21 Total assets $1,628,919 $1,796,607 $1,873,665 $1,882,182 $2,253,747 $2,244,467 Net loans $1,343,895 $1,520,879 $1,586,775 $1,588,840 $1,601,672 $1,650,127 Loan-to-deposit ratio 105.6% 110.1% 106.4% 107.1%
Slide 26: Experienced Leadership Team
26 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 27: Thank You & Questions
x Thank You & Questions
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