Bankwell Financial Group, Inc. · NASDAQ:BWFG
Bankwell Financial — Q4 2017 Earnings Presentation
18 slides from Bankwell Financial's earnings presentation, Feb 1, 2018
Slide 1: Bankwell Financial Group 4Q'17 Investor Presentation
Bankwell Financial Group4Q’17 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: Bankwell: A Growth Story
Bankwell : A Growth Story Bankwell is one of the fastest growing and most profitable community banks in Connecticut. Named “One of the Top 100 Community Banks Under $10 billion” in 2016 1Named a 2017 Sandler O’Neill and Partners “Sm-All Star” 2 March 21, 2017 report issued by S&P Global Market Intel
Slide 4: Why Bankwell?
Why Bankwell? Consistently strong performer in highly attractive markets 1 as of December 31st, 2017
Slide 5: Bankwell Profile
Bankwell Profile $1.80B asset Connecticut-based bank with key focus on CRE and C&I lending9 existing branches in Fairfield & New Haven Counties with 3 opening in 2Q’18Strong performance in ‘17, but reported metrics significantly impacted by DTA write down due to Dec-17 tax law change:8.93% Return on
Slide 6: 4Q'17 Highlights
4Q’17 Highlights Reported net income of $2.1MM, or $0.27 per share for 4Q’17, versus $3.3MM or $0.43 per share for the same period in 2016The Company's Board of Directors declared a $0.12 per share cash dividend, a 71% increasePerformance driven by strong organic loan growth, record gross loan balan
Slide 7: Financial Highlights
Financial Highlights Dollars in thousands, except per share data 2014 2015 2016 2017 Total assets $1,099,531 $1,330,372 $1,628,919 $1,796,607 Loans, net $915,981 $1,129,748 $1,343,895 $1,520,879 Loans to deposits 110.7% 109.1% 105.6% 110.1% Efficiency ratio 68.7% 62.3% 56.5% 54.9% Net interest margi
Slide 8: Consolidated Statement of Income (Quarterly)
Consolidated Statement of Income 4Q’17 3Q’17 4Q’16Total Interest Income $18.7 $18.3 $16.6Total Interest Expense $4.8 $4.5 $3.4Net Interest Income $13.9 $13.9 $13.3(Credit) / Provision for Loan Losses $(0.5) $0.4 $0.7Net Interest Income after Provision $14.4 $13.5 $12.5Non Interest Income $1.5 $0.8 $
Slide 9: Consolidated Statement of Income (Annual)
Consolidated Statement of Income 2017 2016 VTotal Interest Income $71.2 $61.0 $10.2Total Interest Expense $16.8 $11.9 $4.9Net Interest Income $54.4 $49.1 $5.3(Credit) / Provision for Loan Losses $1.3 $3.9 ($2.6)Net Interest Income after Provision $53.0 $45.2 $7.8Non Interest Income $4.6 $2.7 $1.9Non
Slide 10: Financial Performance Trends
Financial Performance Trends $MMs Net IncomeCAGR 18% RevenueCAGR 20% YTD Metrics Reported CoreROAE 8.93% 10.16%ROAA 0.80% 0.91%ROATCE 9.10% 10.36%Net Income $13.8MM $15.7MM One-time non-recurring charges negatively impacted earnings in 4Q’17See page 6 in this presentation and 4Q’17 Earnings Release
Slide 11: Loan Portfolio
Loan Portfolio CAGR 18% $MMs $1,543 $1,366 $1,148 $930
Slide 12: Loan Portfolio Concentration
Loan Portfolio Concentration Commercial Real Estate Total Loan Portfolio Consumer/ Other 1 1 Includes Owner Occupied CRE December 2017 Product & Property Type Diversification Ongoing stratification and in-depth monitoring of concentration limits
Slide 13: Loan Portfolio Concentration: CRE Geography Distribution
Loan Portfolio Concentration: CRE Geography Distribution Measured Approach To ExpansionFollowing Existing Customers To New Locations CRE to Risk Based Capital Ratio Proven track record as CRE LenderStrong risk management practices in placeDeveloped rigorous suite of risk management reports, enabling
Slide 14: Asset Quality
Asset Quality 1 Negative values represent Net Recoveries2 Non-performing Assets to Tangible Equity and Loan Loss Reserves3 2017 ratio reflects new methodology implemented in 4Q’17, see 4Q’17 Earnings Release for further detail NPL to Total Loans Texas Ratio 2 NPL $3.36 $3.79 $2.94 $5.48Net Charge Of
Slide 15: Deposits
Deposits CAGR 19% $MMs $835 $1,047 $1,289 Deposit growth enabled Bankwell to slightly decrease Wholesale funding as a % of assets 1 Wholesale funding comprised of Listed Time Deposits, Brokered Time Deposits & Money Market Accounts, FHLB borrowings $1,398 1
Slide 16: Deposit Initiatives
Deposit Initiatives Branch expansion in existing footprint scheduled for 2Q’18Ongoing expansion of Treasury Management offeringsAdded IOLTA/escrow sub-account functionality, targeting law firms, medical practices, real estate management companies & CPAsLaunched Commercial Card / P-card offeringLaunc
Slide 17: Management Team
Management Team Name Years Experience Selected Professional Biography At Bankwell Christopher GrusekePresident & CEO(since 2015) 25+ Founding investor of Bankwell’s precursor, Bank of New Canaan, member of BoD and ALCO Committee 2009 to 201220 year Investment Banking career focused on financial inst
Slide 18: Thank You & Questions
Ke Thank You & Questions
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