NEW CANAAN, Conn., January 29, 2026--(BUSINESS WIRE)--Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $9.1 million, or $1.15 per share for the fourth quarter of 2025, versus $10.1 million, or $1.27 per share, for the third quarter of 2025. The Company's Board of Directors declared a $0.20 per share cash dividend, payable February 20, 2026 to shareholders of record on February 10, 2026.
Reported fourth quarter of 2025 GAAP net income reflects $1.5 million of one-time income tax expense related to adjustments to the income tax provision, primarily due to the finalization of state tax filings and changes in estimated tax positions associated with the Company’s expanded state-level footprint. These adjustments relate to both current- and prior‑year tax estimates.
Reported GAAP net income of $9.1 million, or $10.7 million on an operating basis(1), for the fourth quarter of 2025.
Reported diluted earnings per share was $1.15, or $1.36 on an operating basis(1), for the fourth quarter of 2025.
Reported return on average assets was 1.11%, or 1.29% on an operating basis(1), for the fourth quarter of 2025.
Reported return on average tangible shareholders' equity was 12.31%, or 14.32% on an operating basis(1), for the fourth quarter of 2025.
Discussion of Outlook; Bankwell Financial Group Chief Executive Officer, Christopher R. Gruseke:
"We finished the year in strong fashion, reporting operating net income of $1.36 per share for the 4th quarter and Pre-tax, pre-provision net revenue return on average assets of 1.80%. GAAP Net Income of $1.15 per share for the quarter includes a one-time adjustment for multiple years’ state level tax provisioning outside of our home state of Connecticut.
We entered the year with a clear set of priorities: strengthen credit, improve the funding mix, build non-interest income, generate high‑quality growth, and embrace an innovative mindset as we continue to invest in our people and in technology and I’m pleased to say that we delivered on each of these priorities.
Building on the work accomplished this year we are pleased to provide the following guidance for 2026:
We expect loan growth of 4 to 5 percent. We anticipate net interest income in the range of $111 to $112 million. We also expect non-interest income to increase to approximately $11 to $12 million. Regarding expenses, we estimate total non-interest expense of $64 to $65 million, which incorporates a prudent level of ongoing investment in our people, infrastructure, and operational capabilities. We are confident that our increased investments will continue to provide further operating leverage; our guidance yields an efficiency ratio of approximately 51% to 53%, versus 54.1% in 2025."
(1) | Non-GAAP Financial Measure, refer to the "Non-GAAP Financial Measures" section of this document for additional detail. |
Key Points for Fourth Quarter and Bankwell’s Outlook
Credit Quality Improves Amid Solid Loan Growth.
$121.9 million net loan growth during the quarter ended December 31, 2025, resulting in $134.2 million, or 5.0%, growth compared to the year ended December 31, 2024.
As of December 31, 2025, nonperforming assets as a percentage of total assets improved to 0.49%, compared to 0.56% as of September 30, 2025. Nonperforming assets have declined $1.9 million from the third quarter, mainly driven by the sale of an OREO property for $1.3 million and the collection of $0.4 million on an SBA guarantee.
Net Interest Margin Expands on Lower Deposit Costs and Improved Mix.
Reported Net Interest Margin was 3.40% for the fourth quarter of 2025, an increase of 6 basis points from the third quarter of 2025. Earning asset yields declined 11 basis points from the third quarter of 2025 to 6.23% while deposit costs decreased 15 basis points to 3.15% over the same period.
During the quarter ended December 31, 2025, average low-cost deposits increased by $21.6 million compared to the third quarter of 2025 and by $85.9 million compared to the same period in the prior year.
Advancing Key Strategic Priorities.
SBA loan sale gains increased to $2.2 million in the fourth quarter of 2025, compared to $1.4 million in the third quarter of 2025. The SBA Lending division delivered $24.3 million in originations in the fourth quarter of 2025, bringing the total year originations to $68.3 million.
As a result of SBA loan sale gains, noninterest income as a percentage of revenue increased to 11.13% in the fourth quarter of 2025, compared to 8.76% in the third quarter of 2025.
For the fourth quarter of 2025, the Company realized an efficiency ratio(1) of 50.8%, compared to 51.4% for the third quarter of 2025.
Fourth Quarter 2025 Financial Highlights and Key Performance Indicators (KPIs):
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
Return on average assets(1)(6) | 1.11 | % | 1.24 | % | 1.14 | % | 0.86 | % | 0.37 | % | |||||||||
Pre-tax, pre-provision net revenue return on average assets(1)(6) | 1.80 | % | 1.70 | % | 1.43 | % | 1.18 | % | 1.05 | % | |||||||||
Return on average shareholders' equity(1)(6) | 12.20 | % | 13.84 | % | 12.98 | % | 10.16 | % | 4.35 | % | |||||||||
Return on average tangible shareholders' equity(1)(6) | 12.31 | % | 13.96 | % | 13.10 | % | 10.25 | % | 4.40 | % | |||||||||
Net Interest Margin(1)(6)(7) | 3.40 | % | 3.34 | % | 3.10 | % | 2.81 | % | 2.60 | % | |||||||||
Efficiency Ratio(1)(3) | 50.8 | % | 51.4 | % | 56.1 | % | 59.9 | % | 56.4 | % | |||||||||
Noninterest expense to average assets(1)(6) | 1.87 | % | 1.80 | % | 1.83 | % | 1.76 | % | 1.56 | % | |||||||||
Net loan (recoveries) charge-offs as a percentage of average loans(1)(6) | 0.00 | % | (0.01 | )% | 0.00 | % | 0.00 | % | 0.11 | % | |||||||||
Dividend payout(1)(4) | 17.39 | % | 15.75 | % | 17.39 | % | 22.99 | % | 54.05 | % | |||||||||
Fully diluted tangible book value per common share(1)(2) | $ | 37.84 | $ | 36.84 | $ | 35.65 | $ | 34.56 | $ | 34.09 | |||||||||
Total capital to risk-weighted assets(1)(5) | 12.94 | % | 13.48 | % | 13.28 | % | 13.22 | % | 12.70 | % | |||||||||
Total common equity tier 1 capital to risk-weighted assets(1)(5) | 11.87 | % | 12.39 | % | 12.20 | % | 12.11 | % | 11.64 | % | |||||||||
Tier I Capital to Average Assets(1)(5) | 10.55 | % | 10.71 | % | 10.57 | % | 10.13 | % | 10.09 | % | |||||||||
Tangible common equity to tangible assets(1)(2) | 8.90 | % | 8.95 | % | 8.68 | % | 8.57 | % | 8.20 | % | |||||||||
Earnings per common share - diluted | $ | 1.15 | $ | 1.27 | $ | 1.15 | $ | 0.87 | $ | 0.37 | |||||||||
Common shares issued and outstanding | 7,899,943 | 7,877,443 | 7,873,387 | 7,888,013 | 7,859,873 | ||||||||||||||
(1) | Non-GAAP Financial Measure, refer to the "Non-GAAP Financial Measures" section of this document for additional detail. |
(2) | Refer to the "Reconciliation of GAAP to Non-GAAP Measures" section of this document for additional detail. |
(3) | Efficiency ratio is defined as noninterest expense, less other real estate owned expenses and amortization of intangible assets, divided by our operating revenue, which is equal to net interest income plus noninterest income excluding gains and losses on sales of securities and gains and losses on other real estate owned. In our judgment, the adjustments made to operating revenue allow investors and analysts to better assess our operating expenses in relation to our core operating revenue by removing the volatility that is associated with certain one-time items and other discrete items that are unrelated to our core business. |
(4) | The dividend payout ratio is calculated by dividing dividends per share by earnings per share. |
(5) | Represents Bank ratios. Current period capital ratios are preliminary subject to finalization of the FDIC Call Report. |
(6) | Return on average assets is calculated by dividing annualized net income by average assets. Pre-tax, pre-provision net revenue return on average is calculated by dividing PPNR (using the "Pre-Tax, Pre-Provision Net Revenue (PPNR)" section of this document) by average assets. Return on average shareholders' equity is calculated by dividing annualized net income by average shareholders' equity. Return on average tangible shareholders' equity is calculated by dividing annualized net income by average shareholders' equity less average intangible assets. Net Interest Margin is calculated by dividing average annualized net interest income by average total earning assets. Noninterest expense to average assets is calculated by dividing annualized noninterest expense by average total assets. Net loan charge-offs as a percentage of average loans is calculated by dividing net loan (charge offs) recoveries by average total loans. |
(7) | Based on a fully tax equivalent basis. |
Pre-Tax, Pre-Provision Net Revenue(1) ("PPNR")
PPNR for the fourth quarter ended December 31, 2025 was $14.9 million, an increase of 7.2% from $13.9 million recognized for the third quarter ended September 30, 2025.
For the Quarter Ended | ||||||||||||||
(Dollars in thousands) | December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||
Net interest income | $ | 26,946 | $ | 25,987 | $ | 23,936 | $ | 22,066 | $ | 20,199 | ||||
Total noninterest income | 3,376 | 2,495 | 2,012 | 1,505 | 964 | |||||||||
Total revenues | 30,322 | 28,482 | 25,948 | 23,571 | 21,163 | |||||||||
Total noninterest expense | 15,470 | 14,631 | 14,546 | 14,141 | 12,644 | |||||||||
PPNR | $ | 14,852 | $ | 13,851 | $ | 11,402 | $ | 9,430 | $ | 8,519 | ||||
(1) Non-GAAP Financial Measure, refer to the "Non-GAAP Financial Measures" section of this document for additional detail. | ||||||||||||||
Revenues (net interest income plus noninterest income) for the quarter ended December 31, 2025 were $30.3 million, compared with $28.5 million in the previous quarter. The increase in revenues for the quarter ended December 31, 2025 was mainly attributable lower funding costs. Additional favorability for the quarter ended December 31, 2025 resulted from increased gains on SBA loan sales, reflecting higher sales volume.
Net Interest Margin
The Net Interest Margin (fully taxable equivalent basis) for the quarters ended December 31, 2025 and September 30, 2025 was 3.40% and 3.34%, respectively. The increase in the Net Interest Margin is mainly due to lower cost of interest bearing deposits.
Allowance for Credit Losses - Loans ("ACL-Loans")
The ACL-Loans was $30.7 million as of December 31, 2025 compared to $30.0 million as of September 30, 2025. The ACL-Loans as a percentage of total loans was 1.08% as of December 31, 2025 compared to 1.10% as of September 30, 2025.
The provision for credit losses - loans was $0.7 million for the quarter ended December 31, 2025. Total nonperforming loans decreased $0.7 million to $16.3 million as of December 31, 2025, when compared to the previous quarter. Nonperforming assets as a percentage of total assets decreased to 0.49% at December 31, 2025, compared to the previous quarter's ratio of 0.56%.
BANKWELL FINANCIAL GROUP, INC. ASSET QUALITY (unaudited) (Dollars in thousands) | ||||||||||||||||||
For the Quarter Ended | ||||||||||||||||||
December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||||||
ACL-Loans: | ||||||||||||||||||
Balance at beginning of period | $ | 29,984 | $ | 29,256 | $ | 29,485 | $ | 29,007 | $ | 27,752 | ||||||||
Charge-offs: | ||||||||||||||||||
Residential real estate | — | — | — | — | — | |||||||||||||
Commercial real estate | — | — | — | (67 | ) | (1,100 | ) | |||||||||||
Commercial business | — | (14 | ) | (15 | ) | — | (703 | ) | ||||||||||
Consumer | — | (46 | ) | (5 | ) | (33 | ) | (5 | ) | |||||||||
Construction | — | — | — | — | (1,155 | ) | ||||||||||||
Total charge-offs | — | (60 | ) | (20 | ) | (100 | ) | (2,963 | ) | |||||||||
Recoveries: | ||||||||||||||||||
Residential real estate | — | — | — | — | — | |||||||||||||
Commercial real estate | 7 | 272 | — | — | — | |||||||||||||
Commercial business | 23 | 92 | 112 | 4 | 4 | |||||||||||||
Consumer | 10 | 4 | 10 | 36 | 5 | |||||||||||||
Construction | — | — | — | — | — | |||||||||||||
Total recoveries | 40 | 368 | 122 | 40 | 9 | |||||||||||||
Net loan recoveries (charge-offs) | 40 | 308 | 102 | (60 | ) | (2,954 | ) | |||||||||||
Provision (credit) for credit losses - loans | 681 | 420 | (331 | ) | 538 | 4,209 | ||||||||||||
Balance at end of period | $ | 30,705 | $ | 29,984 | $ | 29,256 | $ | 29,485 | $ | 29,007 | ||||||||
As of | |||||||||||||||||||
December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||||||||
Asset quality: | |||||||||||||||||||
Nonaccrual loans | |||||||||||||||||||
Residential real estate | $ | 557 | $ | 570 | $ | 617 | $ | 811 | $ | 791 | |||||||||
Commercial real estate | 14,445 | 14,667 | 16,387 | 17,946 | 44,814 | ||||||||||||||
Commercial business | 1,302 | 1,729 | 6,871 | 7,626 | 7,672 | ||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Total nonaccrual loans | 16,304 | 16,966 | 23,875 | 26,383 | 53,277 | ||||||||||||||
Other real estate owned | — | 1,284 | 1,284 | — | 8,299 | ||||||||||||||
Total nonperforming assets | $ | 16,304 | $ | 18,250 | $ | 25,159 | $ | 26,383 | $ | 61,576 | |||||||||
Nonperforming loans as a % of total loans | 0.57 | % | 0.62 | % | 0.89 | % | 1.00 | % | 1.97 | % | |||||||||
Nonperforming assets as a % of total assets | 0.49 | % | 0.56 | % | 0.78 | % | 0.83 | % | 1.88 | % | |||||||||
ACL-loans as a % of total loans | 1.08 | % | 1.10 | % | 1.10 | % | 1.11 | % | 1.07 | % | |||||||||
ACL-loans as a % of nonperforming loans | 188.33 | % | 176.73 | % | 122.54 | % | 111.76 | % | 54.44 | % | |||||||||
Total past due loans to total loans | 0.31 | % | 0.76 | % | 0.91 | % | 1.08 | % | 1.63 | % | |||||||||
Financial Condition & Capital
Assets totaled $3.4 billion at December 31, 2025, an increase of $91.4 million, or 2.8% compared to December 31, 2024. Gross loans totaled $2.8 billion at December 31, 2025, an increase of $134.2 million, or 5.0% compared to December 31, 2024. Deposits totaled $2.8 billion at December 31, 2025, an increase of $41.9 million, or 1.5% compared to December 31, 2024. Brokered deposits have decreased $146.3 million or 20.7%, when compared to December 31, 2024.
Period End Loan Composition | December 31, 2025 | September 30, 2025 | December 31, 2024 | Current QTD % Change | Year over Year % Change | |||||||||
Residential Real Estate | $ | 33,139 | $ | 33,625 | $ | 42,766 | (1.4 | )% | (22.5 | )% | ||||
Commercial Real Estate(1) | 1,930,979 | 1,897,896 | 1,899,134 | 1.7 | 1.7 | |||||||||
Construction | 153,778 | 170,888 | 173,555 | (10.0 | ) | (11.4 | ) | |||||||
Total Real Estate Loans | 2,117,896 | 2,102,409 | 2,115,455 | 0.7 | 0.1 | |||||||||
Commercial Business | 645,321 | 552,682 | 515,125 | 16.8 | 25.3 | |||||||||
Consumer | 76,855 | 63,098 | 75,308 | 21.8 | 2.1 | |||||||||
Total Loans | $ | 2,840,072 | $ | 2,718,189 | $ | 2,705,888 | 4.5 | % | 5.0 | % | ||||
(1) Includes owner occupied commercial real estate of $0.8 billion at December 31, 2025, $0.8 billion at September 30, 2025, and $0.7 billion at December 31, 2024, respectively. | ||||||||||||||
Period End Deposit Composition | December 31, 2025 | September 30, 2025 | December 31, 2024 | Current QTD % Change | Year over Year % Change | |||||||||
Noninterest bearing demand | $ | 403,652 | $ | 397,408 | $ | 321,875 | 1.6 | % | 25.4 | % | ||||
NOW | 90,205 | 84,736 | 105,090 | 6.5 | (14.2 | ) | ||||||||
Money Market | 1,007,844 | 897,387 | 899,413 | 12.3 | 12.1 | |||||||||
Savings | 97,418 | 95,242 | 90,220 | 2.3 | 8.0 | |||||||||
Time | 1,230,362 | 1,282,642 | 1,370,972 | (4.1 | ) | (10.3 | ) | |||||||
Total Deposits | $ | 2,829,481 | $ | 2,757,415 | $ | 2,787,570 | 2.6 | % | 1.5 | % | ||||
Shareholders’ equity totaled $301.5 million as of December 31, 2025, an increase of $31.0 million compared to December 31, 2024, primarily a result of year to date net income of $35.2 million. The increase was partially offset by dividends paid of $6.3 million.
As of December 31, 2025, the Bank's regulatory capital ratios were all above 'well capitalized' values, with total risk-based capital, common-equity tier 1 capital and leverage ratios at 12.94%, 11.87%, and 10.55%, respectively.
We recommend reading this earnings release in conjunction with the Fourth Quarter 2025 Investor Presentation, located at https://investor.mybankwell.com/events-and-presentations/ and included as an exhibit to our January 29, 2026 Current Report on Form 8-K.
Conference Call
Bankwell will host a conference call to discuss the Company’s financial results and business outlook on January 29, 2026, at 11:00 a.m. E.T. The call will be accessible by telephone and webcast using https://investor.mybankwell.com/events-and-presentations/. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event.
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 offers its customers unmatched accessibility, expertise, and responsiveness through a range of commercial financing products including working capital lines of credit, SBA loans, acquisition loans, and commercial mortgages as well as treasury management and deposit services.
For more information about this press release, interested parties may contact Christopher R. Gruseke, Chief Executive Officer or Courtney E. Sacchetti, Executive Vice President and Chief Financial Officer of Bankwell Financial Group at (203) 652-0166 or at ir@mybankwell.com.
For more information, visit www.mybankwell.com.
This press release 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 words such as "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the banking industry or securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and its subsidiaries are engaged.
Non-GAAP Financial Measures
In addition to evaluating the Company's financial performance in accordance with U.S. generally accepted accounting principles ("GAAP"), management may evaluate certain non-GAAP financial measures, such as the efficiency ratio. A computation and reconciliation of certain non-GAAP financial measures used for these purposes is contained in the accompanying Reconciliation of GAAP to Non-GAAP Measures tables. We believe that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends and financial position. For example, the Company believes that the efficiency ratio is useful in the assessment of financial performance, including noninterest expense control. The Company believes that tangible common equity, tangible assets, tangible common equity to tangible assets, tangible common shareholders' equity, fully diluted tangible book value per common share, operating revenue, efficiency ratio, noninterest expense to average assets, average tangible common equity, annualized return on average tangible shareholders' equity, return on average assets, operating basis return on average assets, return on average shareholders' equity, operating basis return on average tangible shareholders' equity, pre-tax, pre-provision net revenue, net interest margin, net loan charge-offs as a percentage of average loans, pre-tax, pre-provision net revenue on average assets, adjusted average equity, operating basis diluted earnings per share, operating net income, and the dividend payout ratio are useful to evaluate the relative strength of the Company's performance and capital position. We utilize these measures for internal planning and forecasting purposes. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. See "Reconciliation of GAAP to Non-GAAP Measures (unaudited)".
BANKWELL FINANCIAL GROUP, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (Dollars in thousands) | |||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 214,567 | $ | 289,628 | $ | 313,998 | $ | 292,006 | $ | 293,552 | |||||||||
Federal funds sold | 10,354 | 5,732 | 8,466 | 12,922 | 13,972 | ||||||||||||||
Cash and cash equivalents | 224,921 | 295,360 | 322,464 | 304,928 | 307,524 | ||||||||||||||
Investment securities | |||||||||||||||||||
Marketable equity securities, at fair value | 2,248 | 2,223 | 2,188 | 2,164 | 2,118 | ||||||||||||||
Available for sale investment securities, at fair value | 160,409 | 96,473 | 103,930 | 97,321 | 107,428 | ||||||||||||||
Held to maturity investment securities, at amortized cost | 29,465 | 29,538 | 36,434 | 36,478 | 36,553 | ||||||||||||||
Total investment securities | 192,122 | 128,234 | 142,552 | 135,963 | 146,099 | ||||||||||||||
Loans receivable (net of ACL-Loans of $30,705, $29,984, $29,256, $29,485, and $29,007, at December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, respectively) | 2,804,441 | 2,684,016 | 2,635,742 | 2,611,495 | 2,672,959 | ||||||||||||||
Accrued interest receivable | 16,143 | 15,633 | 14,741 | 15,409 | 14,535 | ||||||||||||||
Federal Home Loan Bank stock, at cost | 6,207 | 4,951 | 5,051 | 3,583 | 5,655 | ||||||||||||||
Premises and equipment, net | 21,582 | 22,387 | 23,020 | 22,978 | 23,856 | ||||||||||||||
Bank-owned life insurance | 54,207 | 53,846 | 53,488 | 53,136 | 52,791 | ||||||||||||||
Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||
Deferred income taxes, net | 11,356 | 9,027 | 9,684 | 9,551 | 9,742 | ||||||||||||||
Other real estate owned | — | 1,284 | 1,284 | — | 8,299 | ||||||||||||||
Other assets | 26,291 | 26,636 | 25,978 | 24,261 | 24,427 | ||||||||||||||
Total assets | $ | 3,359,859 | $ | 3,243,963 | $ | 3,236,593 | $ | 3,183,893 | $ | 3,268,476 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Deposits | |||||||||||||||||||
Noninterest bearing deposits | $ | 403,652 | $ | 397,408 | $ | 397,195 | $ | 349,525 | $ | 321,875 | |||||||||
Interest bearing deposits | 2,425,829 | 2,360,007 | 2,362,086 | 2,400,920 | 2,465,695 | ||||||||||||||
Total deposits | 2,829,481 | 2,757,415 | 2,759,281 | 2,750,445 | 2,787,570 | ||||||||||||||
Advances from the Federal Home Loan Bank | 110,000 | 75,000 | 75,000 | 40,000 | 90,000 | ||||||||||||||
Subordinated debentures | 69,697 | 69,636 | 69,574 | 69,513 | 69,451 | ||||||||||||||
Accrued expenses and other liabilities | 49,192 | 49,121 | 49,448 | 48,721 | 50,935 | ||||||||||||||
Total liabilities | 3,058,370 | 2,951,172 | 2,953,303 | 2,908,679 | 2,997,956 | ||||||||||||||
Shareholders’ equity | |||||||||||||||||||
Common stock, no par value | 120,118 | 119,353 | 118,698 | 118,439 | 119,108 | ||||||||||||||
Retained earnings | 181,587 | 174,008 | 165,495 | 157,971 | 152,656 | ||||||||||||||
Accumulated other comprehensive (loss) | (216 | ) | (570 | ) | (903 | ) | (1,196 | ) | (1,244 | ) | |||||||||
Total shareholders’ equity | 301,489 | 292,791 | 283,290 | 275,214 | 270,520 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,359,859 | $ | 3,243,963 | $ | 3,236,593 | $ | 3,183,893 | $ | 3,268,476 | |||||||||
BANKWELL FINANCIAL GROUP, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited) (Dollars in thousands, except share data) | |||||||||||||||||||||||
For the Quarter Ended | For the Year Ended | ||||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | |||||||||||||||||
Interest and dividend income | |||||||||||||||||||||||
Interest and fees on loans | $ | 46,739 | $ | 46,328 | $ | 44,128 | $ | 43,475 | $ | 42,851 | $ | 180,670 | $ | 172,832 | |||||||||
Interest and dividends on securities | 1,834 | 1,410 | 1,478 | 1,445 | 1,482 | 6,167 | 5,192 | ||||||||||||||||
Interest on cash and cash equivalents | 2,037 | 2,853 | 3,043 | 3,557 | 3,510 | 11,490 | 13,970 | ||||||||||||||||
Total interest and dividend income | 50,610 | 50,591 | 48,649 | 48,477 | 47,843 | 198,327 | 191,994 | ||||||||||||||||
Interest expense | |||||||||||||||||||||||
Interest expense on deposits | 22,388 | 22,585 | 23,083 | 24,772 | 25,640 | 92,828 | 101,258 | ||||||||||||||||
Interest expense on borrowings | 1,276 | 2,019 | 1,630 | 1,639 | 2,004 | 6,564 | 7,454 | ||||||||||||||||
Total interest expense | 23,664 | 24,604 | 24,713 | 26,411 | 27,644 | 99,392 | 108,712 | ||||||||||||||||
Net interest income | 26,946 | 25,987 | 23,936 | 22,066 | 20,199 | 98,935 | 83,282 | ||||||||||||||||
Provision (credit) for credit losses | 616 | 372 | (411 | ) | 463 | 4,458 | 1,040 | 22,620 | |||||||||||||||
Net interest income after provision (credit) for credit losses | 26,330 | 25,615 | 24,347 | 21,603 | 15,741 | 97,895 | 60,662 | ||||||||||||||||
Noninterest income | |||||||||||||||||||||||
Bank owned life insurance | 361 | 359 | 352 | 344 | 348 | 1,416 | 1,356 | ||||||||||||||||
Service charges and fees | 771 | 779 | 674 | 602 | 589 | 2,826 | 1,963 | ||||||||||||||||
Gains and fees from sales of loans | 2,184 | 1,372 | 1,080 | 442 | 24 | 5,078 | 523 | ||||||||||||||||
Other | 60 | (15 | ) | (94 | ) | 117 | 3 | 68 | (124 | ) | |||||||||||||
Total noninterest income | 3,376 | 2,495 | 2,012 | 1,505 | 964 | 9,388 | 3,718 | ||||||||||||||||
Noninterest expense | |||||||||||||||||||||||
Salaries and employee benefits | 7,717 | 7,995 | 7,521 | 7,052 | 5,056 | 30,285 | 23,746 | ||||||||||||||||
Occupancy and equipment | 2,575 | 2,469 | 2,505 | 2,575 | 2,600 | 10,124 | 9,494 | ||||||||||||||||
Professional services | 1,415 | 1,412 | 1,632 | 1,529 | 1,286 | 5,988 | 4,482 | ||||||||||||||||
Data processing | 877 | 633 | 712 | 885 | 905 | 3,107 | 3,251 | ||||||||||||||||
Director fees | 337 | 333 | 333 | 348 | 342 | 1,351 | 1,840 | ||||||||||||||||
FDIC insurance | 612 | 610 | 684 | 779 | 862 | 2,685 | 3,350 | ||||||||||||||||
Marketing | 108 | 140 | 218 | 142 | 175 | 608 | 452 | ||||||||||||||||
Other | 1,829 | 1,039 | 941 | 831 | 1,418 | 4,640 | 4,436 | ||||||||||||||||
Total noninterest expense | 15,470 | 14,631 | 14,546 | 14,141 | 12,644 | 58,788 | 51,051 | ||||||||||||||||
Income before income tax expense | 14,236 | 13,479 | 11,813 | 8,967 | 4,061 | 48,495 | 13,329 | ||||||||||||||||
Income tax expense | 5,092 | 3,401 | 2,725 | 2,079 | 1,098 | 13,297 | 3,559 | ||||||||||||||||
Net income | $ | 9,144 | $ | 10,078 | $ | 9,088 | $ | 6,888 | $ | 2,963 | $ | 35,198 | $ | 9,770 | |||||||||
Earnings Per Common Share: | |||||||||||||||||||||||
Basic | $ | 1.16 | $ | 1.28 | $ | 1.16 | $ | 0.88 | $ | 0.37 | $ | 4.49 | $ | 1.24 | |||||||||
Diluted | $ | 1.15 | $ | 1.27 | $ | 1.15 | $ | 0.87 | $ | 0.37 | $ | 4.45 | $ | 1.23 | |||||||||
Weighted Average Common Shares Outstanding: | |||||||||||||||||||||||
Basic | 7,776,740 | 7,774,887 | 7,777,469 | 7,670,224 | 7,713,970 | 7,750,191 | 7,710,076 | ||||||||||||||||
Diluted | 7,858,047 | 7,844,785 | 7,819,829 | 7,740,521 | 7,727,412 | 7,826,280 | 7,737,952 | ||||||||||||||||
Dividends per common share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.80 | $ | 0.80 | |||||||||
BANKWELL FINANCIAL GROUP, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited) (Dollars in thousands, except share data) | |||||||||||||||||||
As of | |||||||||||||||||||
Computation of Tangible Common Equity to Tangible Assets | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||||||
Total Equity | $ | 301,489 | $ | 292,791 | $ | 283,290 | $ | 275,214 | $ | 270,520 | |||||||||
Less: | |||||||||||||||||||
Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||
Other intangibles | — | — | — | — | — | ||||||||||||||
Tangible Common Equity | $ | 298,900 | $ | 290,202 | $ | 280,701 | $ | 272,625 | $ | 267,931 | |||||||||
Total Assets | $ | 3,359,859 | $ | 3,243,963 | $ | 3,236,593 | $ | 3,183,893 | $ | 3,268,476 | |||||||||
Less: | |||||||||||||||||||
Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||
Other intangibles | — | — | — | — | — | ||||||||||||||
Tangible Assets | $ | 3,357,270 | $ | 3,241,374 | $ | 3,234,004 | $ | 3,181,304 | $ | 3,265,887 | |||||||||
Tangible Common Equity to Tangible Assets | 8.90 | % | 8.95 | % | 8.68 | % | 8.57 | % | 8.20 | % | |||||||||
As of | ||||||||||||||
Computation of Fully Diluted Tangible Book Value per Common Share | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||
Total shareholders' equity | $ | 301,489 | $ | 292,791 | $ | 283,290 | $ | 275,214 | $ | 270,520 | ||||
Less: | ||||||||||||||
Preferred stock | — | — | — | — | — | |||||||||
Common shareholders' equity | $ | 301,489 | $ | 292,791 | $ | 283,290 | $ | 275,214 | $ | 270,520 | ||||
Less: | ||||||||||||||
Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | |||||||||
Other intangibles | — | — | — | — | — | |||||||||
Tangible common shareholders' equity | $ | 298,900 | $ | 290,202 | $ | 280,701 | $ | 272,625 | $ | 267,931 | ||||
Common shares issued and outstanding | 7,899,943 | 7,877,443 | 7,873,387 | 7,888,013 | 7,859,873 | |||||||||
Fully Diluted Tangible Book Value per Common Share | $ | 37.84 | $ | 36.84 | $ | 35.65 | $ | 34.56 | $ | 34.09 | ||||
BANKWELL FINANCIAL GROUP, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited) (Dollars in thousands, except share data) | |||
Computation of Operating Basis Diluted EPS, Operating Basis Return on Average Assets, Operating Basis Return on Average Equity | For the Quarter Ended | ||
(Dollars in thousands) | December 31, | ||
Net Income | $ | 9,144 | |
Income tax expenses related to a Return-to-provision true-up | 855 | ||
Updates to the reserve for uncertain tax positions methodology change and state-level presence | 692 | ||
Operating Net Income | $ | 10,691 | |
Weighted Average Common Shares Outstanding: | |||
Diluted | 7,858,047 | ||
Operating Diluted EPS | $ | 1.36 | |
Average Assets | $ | 3,277,608 | |
Operating Basis Return on Average Assets | 1.29 | % | |
Adjusted Average Tangible Equity | $ | 296,140 | |
Operating Basis Return on Average Tangible Shareholders' Equity | 14.32 | % | |
BANKWELL FINANCIAL GROUP, INC. EARNINGS PER SHARE ("EPS") (unaudited) (Dollars in thousands, except share data) | |||||||||||||||
For the Quarter Ended December 31, | For the Year Ended December 31, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Net income | $ | 9,144 | $ | 2,963 | $ | 35,198 | $ | 9,770 | |||||||
Dividends to participating securities(1) | 27 | (38 | ) | 106 | (156 | ) | |||||||||
Undistributed earnings allocated to participating securities(1) | (127 | ) | (34 | ) | (514 | ) | (87 | ) | |||||||
Net income for earnings per share calculation | 9,044 | 2,891 | 34,790 | 9,527 | |||||||||||
Weighted average shares outstanding, basic | 7,776,740 | 7,713,970 | 7,750,191 | 7,710,076 | |||||||||||
Effect of dilutive equity-based awards(2) | 81,307 | 13,442 | 76,089 | 27,876 | |||||||||||
Weighted average shares outstanding, diluted | 7,858,047 | 7,727,412 | 7,826,280 | 7,737,952 | |||||||||||
Net earnings per common share: | |||||||||||||||
Basic earnings per common share | $ | 1.16 | $ | 0.37 | $ | 4.49 | $ | 1.24 | |||||||
Diluted earnings per common share | $ | 1.15 | $ | 0.37 | $ | 4.45 | $ | 1.23 | |||||||
(1) | Represents dividends paid and undistributed earnings allocated to unvested stock-based awards that contain non-forfeitable rights to dividends. |
(2) | Represents the effect of the assumed exercise of stock options and the vesting of restricted shares, as applicable, utilizing the treasury stock method. |
BANKWELL FINANCIAL GROUP, INC. NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - QTD (unaudited) (Dollars in thousands) | |||||||||||||||||
For the Quarter Ended | |||||||||||||||||
December 31, 2025 | December 31, 2024 | ||||||||||||||||
Average Balance | Interest | Yield/ Rate (4) | Average Balance | Interest | Yield/ Rate (4) | ||||||||||||
Assets: | |||||||||||||||||
Cash and Fed funds sold | $ | 233,348 | $ | 2,037 | 3.46 | % | $ | 313,777 | $ | 3,510 | 4.45 | % | |||||
Securities(1) | 185,111 | 1,834 | 3.96 | 151,300 | 1,506 | 3.98 | |||||||||||
Loans: | |||||||||||||||||
Commercial real estate | 1,904,755 | 30,454 | 6.26 | 1,896,551 | 28,222 | 5.82 | |||||||||||
Residential real estate | 33,675 | 485 | 5.76 | 44,329 | 753 | 6.79 | |||||||||||
Construction | 181,202 | 3,468 | 7.49 | 171,244 | 3,281 | 7.50 | |||||||||||
Commercial business | 578,924 | 11,364 | 7.68 | 505,655 | 9,911 | 7.67 | |||||||||||
Consumer | 63,762 | 968 | 6.02 | 43,315 | 684 | 6.29 | |||||||||||
Total loans | 2,762,318 | 46,739 | 6.63 | 2,661,094 | 42,851 | 6.30 | |||||||||||
Federal Home Loan Bank stock | 3,453 | 113 | 12.93 | 5,655 | 119 | 8.36 | |||||||||||
Total earning assets | 3,184,230 | $ | 50,723 | 6.23 | % | 3,131,826 | $ | 47,986 | 6.00 | % | |||||||
Other assets | 93,378 | 94,781 | |||||||||||||||
Total assets | $ | 3,277,608 | $ | 3,226,607 | |||||||||||||
Liabilities and shareholders' equity: | |||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||
NOW | $ | 95,035 | $ | 62 | 0.26 | % | $ | 90,497 | $ | 42 | 0.18 | % | |||||
Money market | 957,209 | 8,571 | 3.55 | 855,522 | 8,472 | 3.94 | |||||||||||
Savings | 96,566 | 703 | 2.89 | 88,956 | 692 | 3.10 | |||||||||||
Time | 1,263,108 | 13,052 | 4.10 | 1,385,264 | 16,434 | 4.72 | |||||||||||
Total interest bearing deposits | 2,411,918 | 22,388 | 3.68 | 2,420,239 | 25,640 | 4.21 | |||||||||||
Borrowed Money | 110,961 | 1,275 | 4.56 | 159,416 | 2,004 | 5.00 | |||||||||||
Total interest bearing liabilities | 2,522,879 | $ | 23,663 | 3.72 | % | 2,579,655 | $ | 27,644 | 4.27 | % | |||||||
Noninterest bearing deposits | 404,600 | 322,135 | |||||||||||||||
Other liabilities | 52,812 | 54,013 | |||||||||||||||
Total liabilities | 2,980,291 | 2,955,803 | |||||||||||||||
Shareholders' equity | 297,317 | 270,804 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 3,277,608 | $ | 3,226,607 | |||||||||||||
Net interest income(2) | $ | 27,060 | $ | 20,342 | |||||||||||||
Interest rate spread | 2.51 | % | 1.73 | % | |||||||||||||
Net Interest Margin(3) | 3.40 | % | 2.60 | % | |||||||||||||
(1) | Average balances and yields for securities are based on amortized cost. |
(2) | The adjustment for securities and loans taxable equivalency amounted to $114 thousand and $143 thousand for the quarters ended December 31, 2025 and 2024, respectively. |
(3) | Annualized net interest income as a percentage of earning assets. |
(4) | Yields are calculated using the contractual day count convention for each respective product type. |
BANKWELL FINANCIAL GROUP, INC. NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - YTD (unaudited) (Dollars in thousands) | |||||||||||||||||
For the Year Ended | |||||||||||||||||
December 31, 2025 | December 31, 2024 | ||||||||||||||||
Average Balance | Interest | Yield/ Rate (4) | Average Balance | Interest | Yield/ Rate (4) | ||||||||||||
Assets: | |||||||||||||||||
Cash and Fed funds sold | $ | 288,987 | $ | 11,490 | 3.98 | % | $ | 283,353 | $ | 13,970 | 4.93 | % | |||||
Securities(1) | 157,033 | 6,309 | 4.02 | 142,744 | 5,098 | 3.57 | |||||||||||
Loans: | |||||||||||||||||
Commercial real estate | 1,849,502 | 115,827 | 6.18 | 1,905,973 | 112,804 | 5.82 | |||||||||||
Residential real estate | 36,788 | 2,223 | 6.04 | 47,767 | 2,978 | 6.23 | |||||||||||
Construction | 182,440 | 14,322 | 7.74 | 162,180 | 12,197 | 7.40 | |||||||||||
Commercial business | 554,862 | 44,205 | 7.86 | 514,800 | 42,006 | 8.03 | |||||||||||
Consumer | 70,186 | 4,092 | 5.83 | 41,869 | 2,847 | 6.80 | |||||||||||
Total loans | 2,693,778 | 180,669 | 6.62 | 2,672,589 | 172,832 | 6.36 | |||||||||||
Federal Home Loan Bank stock | 5,000 | 398 | 7.95 | 5,666 | 477 | 8.41 | |||||||||||
Total earning assets | 3,144,798 | $ | 198,866 | 6.24 | % | 3,104,352 | $ | 192,377 | 6.09 | % | |||||||
Other assets | 92,684 | 92,885 | |||||||||||||||
Total assets | $ | 3,237,482 | $ | 3,197,237 | |||||||||||||
Liabilities and shareholders' equity: | |||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||
NOW | $ | 100,341 | $ | 374 | 0.37 | % | $ | 96,091 | $ | 175 | 0.18 | % | |||||
Money market | 908,304 | 34,149 | 3.76 | 851,283 | 34,767 | 4.08 | |||||||||||
Savings | 92,637 | 2,728 | 2.95 | 90,587 | 2,785 | 3.07 | |||||||||||
Time | 1,291,785 | 55,577 | 4.30 | 1,335,680 | 63,531 | 4.76 | |||||||||||
Total interest bearing deposits | 2,393,067 | 92,828 | 3.88 | 2,373,641 | 101,258 | 4.27 | |||||||||||
Borrowed Money | 138,305 | 6,564 | 4.75 | 159,320 | 7,454 | 4.68 | |||||||||||
Total interest bearing liabilities | 2,531,372 | $ | 99,392 | 3.93 | % | 2,532,961 | $ | 108,712 | 4.29 | % | |||||||
Noninterest bearing deposits | 368,777 | 332,611 | |||||||||||||||
Other liabilities | 51,722 | 60,464 | |||||||||||||||
Total liabilities | 2,951,871 | 2,926,036 | |||||||||||||||
Shareholders' equity | 285,611 | 271,201 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 3,237,482 | $ | 3,197,237 | |||||||||||||
Net interest income(2) | $ | 99,474 | $ | 83,665 | |||||||||||||
Interest rate spread | 2.31 | % | 1.80 | % | |||||||||||||
Net Interest Margin(3) | 3.16 | % | 2.70 | % | |||||||||||||
(1) | Average balances and yields for securities are based on amortized cost. |
(2) | The adjustment for securities and loans taxable equivalency amounted to $539 thousand and $383 thousand for the year ended December 31, 2025 and 2024, respectively. |
(3) | Annualized net interest income as a percentage of earning assets. |
(4) | Yields are calculated using the contractual day count convention for each respective product type. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260129339536/en/
Contacts
Christopher R. Gruseke, Chief Executive Officer
Courtney E. Sacchetti, Executive Vice President and Chief Financial Officer
Bankwell Financial Group
(203) 652-0166
ir@mybankwell.com