Bankwell Financial Group, Inc. (NASDAQ: BWFG), parent company of Bankwell Bank, today announced that it has been named to the Piper Sandler 2026 Sm-All Stars Class, a recognition awarded to 25 top-performing publicly traded banks and thrifts nationwide.
Piper Sandler's annual Sm-All Stars list identifies high-performing small-cap banking institutions based on measures of growth, profitability, credit quality and capital strength. To earn Sm-All Stars status, companies were required to have a market capitalization below $2.5 billion, outperform industry medians in core earnings per share growth, organic loan growth, organic deposit growth and return on average equity, and satisfy additional asset quality and capital thresholds.
According to the report, Bankwell’s core EPS grew 104.2% for the twelve months ended June 30, 2026, compared with the preceding twelve-month period, while return on average equity was 14.1% and the net charge-off ratio was (0.01)% for the twelve months ended June 30, 2026. Organic loans and deposits grew 10.9% and 8.7%, respectively, year over year as of June 30, 2026. At that date, Bankwell’s ratio of nonperforming assets to loans plus other real estate owned was 0.54%, and its tangible common equity ratio was 9.2%.
Bankwell's most recent quarterly results show continued momentum. For the second quarter of 2026, the Company reported net income of $12.4 million, or $1.52 per diluted share, with a return on average assets of 1.46% and a return on average tangible common equity of 15.61%. Net interest margin expanded to 3.58%, up 30 basis points from the prior quarter and 48 basis points from the second quarter of 2025, while the efficiency ratio improved to 47.5% from 56.1% a year earlier. Net income for the first half of 2026 totaled $23.6 million, compared with $16.0 million for the first half of 2025.
A deliberate shift toward core relationship funding has been central to that performance. As of June 30, 2026, Bankwell had reduced brokered deposits by $519.9 million, or 50.6%, from their December 31, 2022 peak and lowered its wholesale funding ratio to 16.3% from 21.2% at year end 2025. Noninterest bearing deposits grew 18.8% year over year, and core deposits increased $128 million during the second quarter alone.
Commercial business lending was Bankwell’s fastest-growing loan category, rising 28% year over year. Bankwell funded $268.2 million in loan originations during the second quarter, including $26 million in SBA loans. Credit quality strengthened alongside that growth.
“This recognition is a testament to the consistent execution of our strategy and the dedication of our team. We have remained focused on profitable growth, strengthening our funding base, maintaining strong credit quality, and delivering improved financial performance. While we are proud to be included in this year’s list of Piper Sandler’s top performing small cap financial institutions, we view it as validation of the work we’ve done to build a stronger franchise and position Bankwell for sustained long-term success,” said Christopher R. Gruseke, Chief Executive Officer of Bankwell Financial Group.
About Bankwell Financial Group
Bankwell Financial Group, Inc. is the holding company for Bankwell Bank ("Bankwell"), a full-service commercial bank headquartered in New Canaan, CT. Bankwell provides businesses and professionals with a range of commercial financing solutions, including working capital lines of credit, SBA loans, acquisition financing, and commercial mortgages, along with treasury management and deposit services. Bankwell emphasizes accessibility, expertise, and responsiveness through experienced local banking teams serving its markets.
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