Bankwell Financial Group Reports Record Loan Growth for the Fourth Quarter and Full Year 2022; Declares First Quarter Dividend

About this update from Bankwell Financial Group, Inc.

[{"type":"text","content":" NEW CANAAN, Conn. --(BUSINESS WIRE)--\n Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $8.0 million , or $1.04 per share for the fourth quarter of 2022, versus $7.8 million , or $0.99 per share, for the same period in 2021. For the year ended 2022, net income totaled $37.4 million , or $4.79 per share, versus $26.6 million , or $3.36 per share, for the same period in 2021.\n \nThe Company's Board of Directors declared a $0.20 per share cash dividend, payable February 23, 2023 to shareholders of record on February 13, 2023 .\n \n We recommend reading this earnings release in conjunction with the Fourth Quarter 2022 Investor Presentation, located at http://investor.mybankwell.com/Presentations and included as an exhibit to our January 25, 2023 Current Report on Form 8-K. \n \nNotes Bankwell Financial Group President and CEO, Christopher R. Gruseke :\n \n\"I commend my colleagues at Bankwell for truly exceptional performance in 2022. Our Company posted record results, generating a 16.7% Return on Average Equity and a 1.44% Return on Average Assets. Loan balances grew by over 40%, and we continue to diversify our lending book and bring new commercial relationships to the Bank.\n \n\"This year’s growth has positioned the Company well for the expected continued tightening actions by the Federal Reserve . The average yield of loans originated during 2022 was 6.24% while the average yield on fourth quarter originations was 7.23%.\n \n\"The historic actions of the Federal Reserve this year are yet to be played out, but based on a peak Federal Funds rate implied by financial markets, and our planning for no Fed rate cuts in 2023, we re-affirm our expectations for 2023’s net interest income to decline by approximately 10% versus 2022.\n \n\"Tangible Book Value growth is imperative for value creation to accrue to our shareholders. We are pleased to acknowledge that the Company’s Tangible Book Value per share has compounded at a rate of almost 18% since December 31, 2020 .\n \nWe are proud of the work we have accomplished in transforming our Bank’s business model in recent years, and thank our customers and clients who have made this success possible.\"\n \n Fourth Quarter 2022 Highlights: \n \n \nTotal gross loans were $2.7 billion , growing $780.6 million , or 41.2%, compared to December 31, 2021 .\n \n \nAverage yield on 2022 funded loans was 6.24% compared to 4.56% for 2021.\n \n \nReturn on average assets was 1.07% for the quarter ended December 31, 2022 and 1.44% for the year ended December 31, 2022 .\n \n \nReturn on average shareholders' equity was 13.38% for the quarter ended December 31, 2022 and 16.72% for the year ended December 31, 2022 .\n \n \nThe net interest margin was 3.70% for the quarter ended December 31, 2022 and 3.78% for the year ended December 31, 2022 .\n \n \nThe efficiency ratio was 45.6% for the quarter ended December 31, 2022 and 45.4% for the year ended December 31, 2022 .\n \n \nInvestment securities totaled $121.6 million and represent 3.7% of total assets.\n \n \nFully diluted tangible book value per share rose to $30.51 compared to $25.55 at December 31, 2021 .\n \n \n Earnings and Performance\n Revenues (net interest income plus noninterest income) for the quarter ended December 31, 2022 were $27.3 million , versus $19.8 million for the quarter ended December 31, 2021 . Revenues for the year ended December 31, 2022 were $97.8 million , versus $73.5 million for the year ended December 31, 2021 . The increase in revenues was primarily attributable to an increase in interest and fees on loans due to record loan growth and higher overall loan yields1 for the quarter and year ended December 31, 2022 . The increase in revenues was partially offset by the following: an increase in interest expense; a decrease in noninterest income driven by a reduction in loans sales and the absence of rental income in 2022 due to the disposition of the Company's former headquarters building in the fourth quarter of 2021. Revenues in 2021 also included a one-time federal payroll tax credit for COVID-19 of $0.9 million recognized in the quarter ended March 31, 2021 which did not repeat in 2022.\n \nNet income for the quarter ended December 31, 2022 was $8.0 million , versus $7.8 million for the quarter ended December 31, 2021 . Net income for the year ended December 31, 2022 was $37.4 million , versus $26.6 million for the year ended December 31, 2021 . The increase in net income was a direct result of the aforementioned increases in revenues. In addition, the increase in net income was partially offset by an increase in the provision for loan losses due to loan growth and an increase in noninterest expense for the quarter and year ended December 31, 2022 .\n \nBasic and diluted earnings per share were $1.04 and $1.04 , respectively, for the quarter ended December 31, 2022 compared to basic and diluted earnings per share of $1.00 and $0.99 , respectively, for the quarter ended December 31, 2021 . Basic and diluted earnings per share were $4.84 and $4.79 , respectively, for the year ended December 31, 2022 compared to basic and diluted earnings per share of $3.38 and $3.36 , respectively, for the year ended December 31, 2021 .\n \nThe net interest margin (fully taxable equivalent basis) for the quarters ended December 31, 2022 and December 31, 2021 was 3.70% and 3.43%, respectively. The net interest margin (fully taxable equivalent basis) for the year ended December 31, 2022 and December 31, 2021 was 3.78% and 3.17%, respectively. The increase in the net interest margin was due to an increase in overall loan yields, aided in part by elevated loan prepayment fees, partially offset by an increase in funding costs.\n \n \n \n1 - The increase in overall loan yields were 122 bps and 68 bps, respectively, for the quarter and year ended December 31, 2022 .\n \n \n \n \n Provision for Loan Losses \n \nProvision for loan losses was $4.3 million and $5.4 million for the quarter and year ended December 31, 2022 , respectively, bringing the total allowance for loan losses to $22.4 million as of December 31, 2022 . Provision for loan losses was $0.1 million for the quarter ended December 31, 2021 and a credit for loan losses of $0.1 million for the year ended December 31, 2021 . The increase in the Provision for loan losses for both the quarter and year ended December 31, 2022 was attributable to loan growth.\n \nOn January 1, 2023 , the Company adopted ASC 326 Financial Instruments - Credit Losses (\"CECL\"). Upon adoption of CECL, the Company will record a one-time cumulative effect, pre-tax adjustment range of $3.4 million to $4.2 million to the Allowance for loan losses and a corresponding net of tax adjustment to beginning retained earnings. This impact will be reflected in the Company's first quarter 2023 financial statements.\n \n Financial Condition \n \nAssets totaled $3.25 billion at December 31, 2022 , compared to assets of $2.46 billion at December 31, 2021 . The increase in assets was primarily due to loan growth. Gross loans totaled $2.7 billion at December 31, 2022 , an increase of $780.6 million or 41.2% compared to December 31, 2021 . Deposits totaled $2.8 billion at December 31, 2022 , compared to deposits of $2.1 billion at December 31, 2021 .\n \n Capital \n \nShareholders’ equity totaled $238.5 million as of December 31, 2022 , an increase of $36.5 million compared to December 31, 2021 , primarily a result of (i) net income of $37.4 million for the year ended December 31, 2022 and (ii) an $8.4 million favorable impact to accumulated other comprehensive income driven by fair value marks related to hedge positions involving interest rate swaps of $16.8 million , partially offset by fair value marks on the Company's investment portfolio of $8.4 million . The Company's interest rate swaps are used to hedge interest rate risk. The increase in Shareholders’ equity was partially offset by dividends paid of $6.2 million and common stock repurchases of $5.5 million .\n \n About Bankwell Financial Group \n \nBankwell is a commercial bank that serves the banking needs of residents and businesses throughout Fairfield and New Haven Counties, Connecticut . For more information about this press release, interested parties may contact Christopher R. Gruseke , President and Chief Executive Officer or Courtney E. Sacchetti , Executive Vice President and Chief Financial Officer of Bankwell Financial Group at (203) 652-0166.\n \nFor more information, visit www.mybankwell.com .\n \nThis 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 securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and its subsidiaries are engaged. The COVID-19 pandemic continues to affect Bankwell Financial Group , its customers, counterparties, employees, and third party service providers, and the ultimate extent of the impacts on its business, financial position, results of operations, liquidity, and prospects is unknown.\n \n Non-GAAP Financial Measures \n \nIn 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, adjusted non interest expense, operating revenue, efficiency ratio, average tangible common equity, annualized return on average tangible common equity, return on average assets, return on average shareholders' equity, 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.\n \n \n \n \n \n \n BANKWELL FINANCIAL GROUP, INC. \n \n \n CONSOLIDATED BALANCE SHEETS (unaudited) \n \n \n (Dollars in thousands) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n December 31 ,\n 2022 \n \n \n \n \n \n \n \n September 30 ,\n 2022 \n \n \n \n \n \n \n \n June 30 ,\n 2022 \n \n \n \n \n \n \n \n March 31 ,\n 2022 \n \n \n \n \n \n \n \n December 31 ,\n 2021 \n \n \n \n \n \n ASSETS \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nCash and due from banks\n \n \n \n$\n \n \n \n344,925\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n212,175\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n149,522\n \n \n \n \n \n \n \n$\n \n \n \n280,471\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n291,598\n \n \n \n \n \n \n \n \n \nFederal funds sold\n \n \n \n \n \n \n \n10,754\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n10,947\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n21,505\n \n \n \n \n \n \n \n \n \n \n \n19,022\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n53,084\n \n \n \n \n \n \n \n \n \nCash and cash equivalents\n \n \n \n \n \n \n \n355,679\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n223,122\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n171,027\n \n \n \n \n \n \n \n \n \n \n \n299,493\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n344,682\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nInvestment securities\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nMarketable equity securities, at fair value\n \n \n \n \n \n \n \n1,988\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,973\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,126\n \n \n \n \n \n \n \n \n \n \n \n2,090\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,168\n \n \n \n \n \n \n \n \n \nAvailable for sale investment securities, at fair value\n \n \n \n \n \n \n \n103,663\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n95,095\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n94,907\n \n \n \n \n \n \n \n \n \n \n \n98,733\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n90,198\n \n \n \n \n \n \n \n \n \nHeld to maturity investment securities, at amortized cost\n \n \n \n \n \n \n \n15,983\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n16,027\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n15,917\n \n \n \n \n \n \n \n \n \n \n \n15,979\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n16,043\n \n \n \n \n \n \n \n \n \nTotal investment securities\n \n \n \n \n \n \n \n121,634\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n113,095\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n112,950\n \n \n \n \n \n \n \n \n \n \n \n116,802\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n108,409\n \n \n \n \n \n \n \n \n \nLoans receivable (net of allowance for loan losses of $22,431 , $18,167 , $15,773 , $17,141 and $16,902 at December 31, 2022 , September 30, 2022 , June 30, 2022 , March 31, 2022 and December 31, 2021 , respectively)\n \n \n \n \n \n \n \n2,646,384\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,263,432\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,036,626\n \n \n \n \n \n \n \n \n \n \n \n1,964,567\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,875,167\n \n \n \n \n \n \n \n \n \nAccrued interest receivable\n \n \n \n \n \n \n \n13,070\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n9,552\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n8,047\n \n \n \n \n \n \n \n \n \n \n \n7,733\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n7,512\n \n \n \n \n \n \n \n \n \n Federal Home Loan Bank stock, at cost\n \n \n \n \n \n \n \n5,216\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n5,039\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n5,064\n \n \n \n \n \n \n \n \n \n \n \n2,870\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,814\n \n \n \n \n \n \n \n \n \nPremises and equipment, net\n \n \n \n \n \n \n \n27,199\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n27,510\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n27,768\n \n \n \n \n \n \n \n \n \n \n \n25,661\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n25,588\n \n \n \n \n \n \n \n \n \nBank-owned life insurance\n \n \n \n \n \n \n \n50,243\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n49,970\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n49,699\n \n \n \n \n \n \n \n \n \n \n \n49,434\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n49,174\n \n \n \n \n \n \n \n \n \n Goodwill \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \nDeferred income taxes, net\n \n \n \n \n \n \n \n7,422\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n5,952\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n4,768\n \n \n \n \n \n \n \n \n \n \n \n6,879\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n7,621\n \n \n \n \n \n \n \n \n \nOther assets\n \n \n \n \n \n \n \n23,013\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n22,734\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n17,014\n \n \n \n \n \n \n \n \n \n \n \n20,849\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n32,708\n \n \n \n \n \n \n \n \n \n Total assets \n \n \n \n$\n \n \n \n3,252,449\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n2,722,995\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n2,435,552\n \n \n \n \n \n \n \n$\n \n \n \n2,496,877\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n2,456,264\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n LIABILITIES AND SHAREHOLDERS’ EQUITY \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nLiabilities\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nDeposits\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nNoninterest bearing deposits\n \n \n \n$\n \n \n \n404,559\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n380,365\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n372,584\n \n \n \n \n \n \n \n$\n \n \n \n412,985\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n398,956\n \n \n \n \n \n \n \n \n \nInterest bearing deposits\n \n \n \n \n \n \n \n2,396,259\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,906,337\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,660,941\n \n \n \n \n \n \n \n \n \n \n \n1,753,219\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,725,042\n \n \n \n \n \n \n \n \n \nTotal deposits\n \n \n \n \n \n \n \n2,800,818\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,286,702\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,033,525\n \n \n \n \n \n \n \n \n \n \n \n2,166,204\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,123,998\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nAdvances from the Federal Home Loan Bank \n \n \n \n \n \n \n \n90,000\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n90,000\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n105,000\n \n \n \n \n \n \n \n \n \n \n \n50,000\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n50,000\n \n \n \n \n \n \n \n \n \nSubordinated debentures\n \n \n \n \n \n \n \n68,959\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n68,897\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n34,500\n \n \n \n \n \n \n \n \n \n \n \n34,471\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n34,441\n \n \n \n \n \n \n \n \n \nAccrued expenses and other liabilities\n \n \n \n \n \n \n \n54,203\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n45,896\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n37,060\n \n \n \n \n \n \n \n \n \n \n \n35,982\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n45,838\n \n \n \n \n \n \n \n \n \n Total liabilities \n \n \n \n \n \n \n \n3,013,980\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,491,495\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,210,085\n \n \n \n \n \n \n \n \n \n \n \n2,286,657\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,254,277\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nShareholders’ equity\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nCommon stock, no par value\n \n \n \n \n \n \n \n115,018\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n114,548\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n115,599\n \n \n \n \n \n \n \n \n \n \n \n114,882\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n118,148\n \n \n \n \n \n \n \n \n \nRetained earnings\n \n \n \n \n \n \n \n123,640\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n117,152\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n109,523\n \n \n \n \n \n \n \n \n \n \n \n99,047\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n92,400\n \n \n \n \n \n \n \n \n \nAccumulated other comprehensive (loss) income\n \n \n \n \n \n \n \n(189\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n(200\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n345\n \n \n \n \n \n \n \n \n \n \n \n(3,709\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n(8,561\n \n \n \n)\n \n \n \n \n \n Total shareholders’ equity \n \n \n \n \n \n \n \n238,469\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n231,500\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n225,467\n \n \n \n \n \n \n \n \n \n \n \n210,220\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n201,987\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total liabilities and shareholders’ equity \n \n \n \n$\n \n \n \n3,252,449\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n2,722,995\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n2,435,552\n \n \n \n \n \n \n \n$\n \n \n \n2,496,877\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n2,456,264\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n BANKWELL FINANCIAL GROUP, INC. \n \n \n CONSOLIDATED STATEMENTS OF INCOME (unaudited) \n \n \n (Dollars in thousands, except share data) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n For the Quarter Ended \n \n \n \n \n \n \n \n For the Year Ended \n \n \n \n \n \n \n \n \n \n December 31 ,\n 2022 \n \n \n \n \n \n \n \n September 30 ,\n 2022 \n \n \n \n \n \n \n \n June 30 ,\n 2022 \n \n \n \n \n \n \n \n March 31 ,\n 2022 \n \n \n \n \n \n \n \n December 31 ,\n 2021 \n \n \n \n \n \n \n \n December 31 ,\n 2022 \n \n \n \n \n \n \n \n December 31 ,\n 2021 \n \n \n \n \n \n Interest and dividend income \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nInterest and fees on loans\n \n \n \n$\n \n \n \n36,545\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n28,128\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n25,141\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n21,428\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n21,081\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n111,242\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n78,042\n \n \n \n \n \n \n \n \n \nInterest and dividends on securities\n \n \n \n \n \n \n \n898\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n811\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n774\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n720\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n722\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n3,203\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,958\n \n \n \n \n \n \n \n \n \nInterest on cash and cash equivalents\n \n \n \n \n \n \n \n2,150\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n747\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n449\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n154\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n90\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n3,500\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n376\n \n \n \n \n \n \n \n \n \nTotal interest and dividend income\n \n \n \n \n \n \n \n39,593\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n29,686\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n26,364\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n22,302\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n21,893\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n117,945\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n81,376\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Interest expense \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nInterest expense on deposits\n \n \n \n \n \n \n \n11,083\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n4,092\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,983\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,206\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,198\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n19,364\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n10,443\n \n \n \n \n \n \n \n \n \nInterest expense on borrowings\n \n \n \n \n \n \n \n1,701\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n993\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n558\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n586\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n767\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n3,838\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n3,047\n \n \n \n \n \n \n \n \n \nTotal interest expense\n \n \n \n \n \n \n \n12,784\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n5,085\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,541\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,792\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,965\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n23,202\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n13,490\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net interest income \n \n \n \n \n \n \n \n26,809\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n24,601\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n23,823\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n19,510\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n18,928\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n94,743\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n67,886\n \n \n \n \n \n \n \n \n \n Provision (credit) for loan losses \n \n \n \n \n \n \n \n4,272\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,381\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n(1,445\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n229\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n125\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n5,437\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n(57\n \n \n \n)\n \n \n \n \n \n Net interest income after provision (credit) for loan losses \n \n \n \n \n \n \n \n22,537\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n22,220\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n25,268\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n19,281\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n18,803\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n89,306\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n67,943\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Noninterest income \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nBank owned life insurance\n \n \n \n \n \n \n \n273\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n271\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n265\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n260\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n270\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,069\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,023\n \n \n \n \n \n \n \n \n \nService charges and fees\n \n \n \n \n \n \n \n343\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n240\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n249\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n240\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n257\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,072\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n872\n \n \n \n \n \n \n \n \n \nGains (losses) and fees from sales of loans\n \n \n \n \n \n \n \n12\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n(15\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n608\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n631\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n441\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,236\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,692\n \n \n \n \n \n \n \n \n \nOther\n \n \n \n \n \n \n \n(100\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n(94\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n30\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n(173\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n(143\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n(337\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n1,070\n \n \n \n \n \n \n \n \n \nTotal noninterest income\n \n \n \n \n \n \n \n528\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n402\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,152\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n958\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n825\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n3,040\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n5,657\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Noninterest expense \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nSalaries and employee benefits\n \n \n \n \n \n \n \n5,988\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n5,876\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n5,433\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n4,940\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n4,806\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n22,237\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n18,317\n \n \n \n \n \n \n \n \n \nOccupancy and equipment\n \n \n \n \n \n \n \n1,919\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,035\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,193\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,150\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,411\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n8,297\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n10,682\n \n \n \n \n \n \n \n \n \nProfessional services\n \n \n \n \n \n \n \n912\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n994\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,000\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n981\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n628\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n3,887\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,260\n \n \n \n \n \n \n \n \n \nData processing\n \n \n \n \n \n \n \n663\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n626\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n689\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n654\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n432\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,632\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,409\n \n \n \n \n \n \n \n \n \nDirector fees\n \n \n \n \n \n \n \n378\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n325\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n339\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n352\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n335\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,394\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,303\n \n \n \n \n \n \n \n \n \n FDIC insurance\n \n \n \n \n \n \n \n898\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n255\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n262\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n223\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n231\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,638\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,232\n \n \n \n \n \n \n \n \n \nMarketing\n \n \n \n \n \n \n \n112\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n102\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n107\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n45\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n87\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n366\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n404\n \n \n \n \n \n \n \n \n \nOther\n \n \n \n \n \n \n \n1,601\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n818\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n913\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n580\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n749\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n3,912\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n3,132\n \n \n \n \n \n \n \n \n \nTotal noninterest expense\n \n \n \n \n \n \n \n12,471\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n11,031\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n10,936\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n9,925\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n9,679\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n44,363\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n39,739\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Income before income tax expense \n \n \n \n \n \n \n \n10,594\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n11,591\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n15,484\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n10,314\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n9,949\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n47,983\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n33,861\n \n \n \n \n \n \n \n \n \n Income tax expense \n \n \n \n \n \n \n \n2,573\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,417\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n3,462\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,102\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,135\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n10,554\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n7,275\n \n \n \n \n \n \n \n \n \n Net income \n \n \n \n$\n \n \n \n8,021\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n9,174\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n12,022\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n8,212\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n7,814\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n37,429\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n26,586\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Earnings Per Common Share: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nBasic\n \n \n \n$\n \n \n \n1.04\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n1.19\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n1.56\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n1.05\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n1.00\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n4.84\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n3.38\n \n \n \n \n \n \n \n \n \nDiluted\n \n \n \n$\n \n \n \n1.04\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n1.18\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n1.55\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n1.04\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n0.99\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n4.79\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n3.36\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nWeighted Average Common Shares Outstanding:\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nBasic\n \n \n \n \n \n \n \n7,507,540\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n7,553,718\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n7,556,645\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n7,637,077\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n7,660,307\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n7,563,363\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n7,706,407\n \n \n \n \n \n \n \n \n \nDiluted\n \n \n \n \n \n \n \n7,563,116\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n7,612,421\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n7,614,243\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n7,719,405\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n7,726,420\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n7,640,218\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n7,761,811\n \n \n \n \n \n \n \n \n \nDividends per common share\n \n \n \n$\n \n \n \n0.20\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n0.20\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n0.20\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n0.20\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n0.18\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n0.80\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n0.64\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n BANKWELL FINANCIAL GROUP, INC. \n \n \n CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n For the Quarter Ended \n \n \n \n \n \n \n \n For the Year Ended \n \n \n \n \n \n \n \n \n \n December 31 , \n \n \n 2022 \n \n \n \n \n \n \n \n September 30 , \n \n \n 2022 \n \n \n \n \n \n \n \n June 30 , \n \n \n 2022 \n \n \n \n \n \n \n \n March 31 , \n \n \n 2022 \n \n \n \n \n \n \n \n December 31 , \n \n \n 2021 \n \n \n \n \n \n \n \n December 31 , \n \n \n 2022 \n \n \n \n \n \n \n \n December 31 , \n \n \n 2021 \n \n \n \n \n \n Performance ratios: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nReturn on average assets\n \n \n \n1.07\n \n \n \n%\n \n \n \n \n \n \n \n1.47\n \n \n \n%\n \n \n \n \n \n \n \n1.96\n \n \n \n%\n \n \n \n \n \n \n \n1.35\n \n \n \n%\n \n \n \n \n \n \n \n1.32\n \n \n \n%\n \n \n \n \n \n \n \n1.44\n \n \n \n%\n \n \n \n \n \n \n \n1.17\n \n \n \n%\n \n \n \n \n \nReturn on average shareholders' equity\n \n \n \n13.38\n \n \n \n%\n \n \n \n \n \n \n \n15.73\n \n \n \n%\n \n \n \n \n \n \n \n22.09\n \n \n \n%\n \n \n \n \n \n \n \n16.05\n \n \n \n%\n \n \n \n \n \n \n \n15.44\n \n \n \n%\n \n \n \n \n \n \n \n16.72\n \n \n \n%\n \n \n \n \n \n \n \n13.86\n \n \n \n%\n \n \n \n \n \nReturn on average tangible common equity\n \n \n \n13.52\n \n \n \n%\n \n \n \n \n \n \n \n15.91\n \n \n \n%\n \n \n \n \n \n \n \n22.36\n \n \n \n%\n \n \n \n \n \n \n \n16.25\n \n \n \n%\n \n \n \n \n \n \n \n15.65\n \n \n \n%\n \n \n \n \n \n \n \n16.91\n \n \n \n%\n \n \n \n \n \n \n \n14.05\n \n \n \n%\n \n \n \n \n \nNet interest margin\n \n \n \n3.70\n \n \n \n%\n \n \n \n \n \n \n \n4.12\n \n \n \n%\n \n \n \n \n \n \n \n4.01\n \n \n \n%\n \n \n \n \n \n \n \n3.30\n \n \n \n%\n \n \n \n \n \n \n \n3.43\n \n \n \n%\n \n \n \n \n \n \n \n3.78\n \n \n \n%\n \n \n \n \n \n \n \n3.17\n \n \n \n%\n \n \n \n \n \nEfficiency ratio(1)\n \n \n \n45.6\n \n \n \n%\n \n \n \n \n \n \n \n44.1\n \n \n \n%\n \n \n \n \n \n \n \n43.8\n \n \n \n%\n \n \n \n \n \n \n \n48.5\n \n \n \n%\n \n \n \n \n \n \n \n48.8\n \n \n \n%\n \n \n \n \n \n \n \n45.4\n \n \n \n%\n \n \n \n \n \n \n \n53.9\n \n \n \n%\n \n \n \n \n \nNet loan charge-offs as a % of average loans\n \n \n \n—\n \n \n \n%\n \n \n \n \n \n \n \n—\n \n \n \n%\n \n \n \n \n \n \n \n—\n \n \n \n%\n \n \n \n \n \n \n \n—\n \n \n \n%\n \n \n \n \n \n \n \n—\n \n \n \n%\n \n \n \n \n \n \n \n—\n \n \n \n%\n \n \n \n \n \n \n \n0.23\n \n \n \n%\n \n \n \n \n \nDividend payout ratio(2)\n \n \n \n19.23\n \n \n \n%\n \n \n \n \n \n \n \n16.95\n \n \n \n%\n \n \n \n \n \n \n \n12.90\n \n \n \n%\n \n \n \n \n \n \n \n19.23\n \n \n \n%\n \n \n \n \n \n \n \n18.18\n \n \n \n%\n \n \n \n \n \n \n \n16.70\n \n \n \n%\n \n \n \n \n \n \n \n19.05\n \n \n \n%\n \n \n \n \n \n \n(1)\n \n \n \n \n \n \n \nEfficiency 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.\n \n \n \n \n \n(2)\n \n \n \n \n \n \n \nThe dividend payout ratio is calculated by dividing dividends per share by earnings per share.\n \n \n \n \n \n \n \n \n \n \n \n \n As of \n \n \n \n \n \n \n \n \n \n December 31 ,\n 2022 \n \n \n \n \n \n \n \n September 30 ,\n 2022 \n \n \n \n \n \n \n \n June 30 ,\n 2022 \n \n \n \n \n \n \n \n March 31 ,\n 2022 \n \n \n \n \n \n \n \n December 31 ,\n 2021 \n \n \n \n \n \n Capital ratios: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nTotal Common Equity Tier 1 Capital to Risk-Weighted Assets(1)\n \n \n \n10.28\n \n \n \n%\n \n \n \n \n \n \n \n11.42\n \n \n \n%\n \n \n \n \n \n \n \n11.10\n \n \n \n%\n \n \n \n \n \n \n \n11.20\n \n \n \n%\n \n \n \n \n \n \n \n11.18\n \n \n \n%\n \n \n \n \n \nTotal Capital to Risk-Weighted Assets(1)\n \n \n \n11.07\n \n \n \n%\n \n \n \n \n \n \n \n12.16\n \n \n \n%\n \n \n \n \n \n \n \n11.80\n \n \n \n%\n \n \n \n \n \n \n \n12.00\n \n \n \n%\n \n \n \n \n \n \n \n12.00\n \n \n \n%\n \n \n \n \n \n Tier I Capital to Risk-Weighted Assets(1)\n \n \n \n10.28\n \n \n \n%\n \n \n \n \n \n \n \n11.42\n \n \n \n%\n \n \n \n \n \n \n \n11.10\n \n \n \n%\n \n \n \n \n \n \n \n11.20\n \n \n \n%\n \n \n \n \n \n \n \n11.18\n \n \n \n%\n \n \n \n \n \n Tier I Capital to Average Assets(1)\n \n \n \n9.88\n \n \n \n%\n \n \n \n \n \n \n \n11.31\n \n \n \n%\n \n \n \n \n \n \n \n10.15\n \n \n \n%\n \n \n \n \n \n \n \n9.80\n \n \n \n%\n \n \n \n \n \n \n \n9.94\n \n \n \n%\n \n \n \n \n \nTangible common equity to tangible assets\n \n \n \n7.26\n \n \n \n%\n \n \n \n \n \n \n \n8.41\n \n \n \n%\n \n \n \n \n \n \n \n9.16\n \n \n \n%\n \n \n \n \n \n \n \n8.32\n \n \n \n%\n \n \n \n \n \n \n \n8.13\n \n \n \n%\n \n \n \n \n \nFully diluted tangible book value per common share\n \n \n \n $ 30.51 \n \n \n \n \n \n \n \n \n \n \n \n $ 29.68 \n \n \n \n \n \n \n \n \n \n \n \n $ 28.75 \n \n \n \n \n \n \n \n \n \n \n \n $ 26.75 \n \n \n \n \n \n \n \n \n \n \n \n $ 25.55 \n \n \n \n \n \n \n \n \n \n \n(1)\n \n \n \n \n \n \n \n Represents Bank ratios. Current period capital ratios are preliminary subject to finalization of the FDIC Call Report.\n \n \n \n \n \n \n \n \n \n \n \n BANKWELL FINANCIAL GROUP, INC. \n \n \n ASSET QUALITY (unaudited) \n \n \n (Dollars in thousands) \n \n \n \n \n \n \n \n \n \n \n \n \n \n For the Quarter Ended \n \n \n \n \n \n \n \n \n \n December 31 ,\n 2022 \n \n \n \n \n \n \n \n September 30 ,\n 2022 \n \n \n \n \n \n \n \n June 30 ,\n 2022 \n \n \n \n \n \n \n \n March 31 ,\n 2022 \n \n \n \n \n \n \n \n December 31 ,\n 2021 \n \n \n \n \n \n Allowance for loan losses: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nBalance at beginning of period\n \n \n \n$\n \n \n \n18,167\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n15,773\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n17,141\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n16,902\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n16,803\n \n \n \n \n \n \n \n \n \nCharge-offs:\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nCommercial business\n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n(26\n \n \n \n)\n \n \n \n \n \nConsumer\n \n \n \n \n \n \n \n(11\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n(8\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n(4\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n(5\n \n \n \n)\n \n \n \n \n \nTotal charge-offs\n \n \n \n \n \n \n \n(11\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n(8\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n(4\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n(31\n \n \n \n)\n \n \n \n \n \nRecoveries:\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nCommercial real estate\n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n77\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \nCommercial business\n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n21\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n13\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2\n \n \n \n \n \n \n \n \n \nConsumer\n \n \n \n \n \n \n \n3\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n3\n \n \n \n \n \n \n \n \n \nTotal recoveries\n \n \n \n \n \n \n \n3\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n21\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n77\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n14\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n5\n \n \n \n \n \n \n \n \n \nNet loan (charge-offs) recoveries\n \n \n \n \n \n \n \n(8\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n13\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n77\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n10\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n(26\n \n \n \n)\n \n \n \n \n \nProvision (credit) for loan losses\n \n \n \n \n \n \n \n4,272\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,381\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n(1,445\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n229\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n125\n \n \n \n \n \n \n \n \n \n Balance at end of period \n \n \n \n$\n \n \n \n22,431\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n18,167\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n15,773\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n17,141\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n16,902\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n As of \n \n \n \n \n \n \n \n \n \n December 31 ,\n 2022 \n \n \n \n \n \n \n \n September 30 ,\n 2022 \n \n \n \n \n \n \n \n June 30 ,\n 2022 \n \n \n \n \n \n \n \n March 31 ,\n 2022 \n \n \n \n \n \n \n \n December 31 ,\n 2021 \n \n \n \n \n \n Asset quality: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nNonaccrual loans\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nResidential real estate\n \n \n \n$\n \n \n \n2,152\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n2,137\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n2,161\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n2,181\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n2,380\n \n \n \n \n \n \n \n \n \nCommercial real estate\n \n \n \n \n \n \n \n2,781\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,894\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,955\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n3,365\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n3,482\n \n \n \n \n \n \n \n \n \nCommercial business\n \n \n \n \n \n \n \n2,126\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,380\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n787\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n817\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,728\n \n \n \n \n \n \n \n \n \nConstruction\n \n \n \n \n \n \n \n9,382\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n9,382\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n9,382\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n9,382\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n8,997\n \n \n \n \n \n \n \n \n \nTotal nonaccrual loans\n \n \n \n \n \n \n \n16,441\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n16,793\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n15,285\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n15,745\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n16,587\n \n \n \n \n \n \n \n \n \nOther real estate owned\n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \nTotal nonperforming assets\n \n \n \n$\n \n \n \n16,441\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n16,793\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n15,285\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n15,745\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n16,587\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nNonperforming loans as a % of total loans\n \n \n \n \n \n \n \n0.61\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n0.73\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n0.74\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n0.79\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n0.88\n \n \n \n%\n \n \n \n \n \nNonperforming assets as a % of total assets\n \n \n \n \n \n \n \n0.51\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n0.62\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n0.63\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n0.63\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n0.68\n \n \n \n%\n \n \n \n \n \nAllowance for loan losses as a % of total loans\n \n \n \n \n \n \n \n0.84\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n0.79\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n0.77\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n0.86\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n0.89\n \n \n \n%\n \n \n \n \n \nAllowance for loan losses as a % of nonperforming loans\n \n \n \n \n \n \n \n136.43\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n108.18\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n103.19\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n108.87\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n101.90\n \n \n \n%\n \n \n \n \n \nTotal past due loans to total loans\n \n \n \n \n \n \n \n0.60\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n0.78\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n1.40\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n0.85\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n1.72\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nTotal nonaccrual loans decreased $0.1 million to $16.4 million as of December 31, 2022 when compared to December 31, 2021 . Nonperforming assets as a percentage of total assets decreased to 0.51% at December 31, 2022 , down from 0.68% at December 31, 2021 . The allowance for loan losses at December 31, 2022 was $22.4 million , representing 0.84% of total loans.\n \nPast due loans decreased to $16.1 million , or 0.60% of total loans, as of December 31, 2022 , compared to $32.6 million , or 1.72% of total loans, as of December 31, 2021 .\n \n \n \n \n \n \n BANKWELL FINANCIAL GROUP, INC. \n \n \n LOAN & DEPOSIT PORTFOLIO (unaudited) \n \n \n (Dollars in thousands) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Period End Loan Composition \n \n \n \n December 31 ,\n 2022 \n \n \n \n \n \n \n \n September 30 ,\n 2022 \n \n \n \n \n \n \n \n December 31 ,\n 2021 \n \n \n \n \n \n \n \n \n \n \n Current QTD\n % Change \n \n \n \n \n \n \n \n YTD\n % Change \n \n \n \n \n \n Residential Real Estate \n \n \n \n$\n \n \n \n60,588\n \n \n \n \n \n \n \n$\n \n \n \n61,664\n \n \n \n \n \n \n \n$\n \n \n \n79,987\n \n \n \n \n \n \n \n(1.7\n \n \n \n)%\n \n \n \n \n \n \n \n(24.3\n \n \n \n)%\n \n \n \n \n \n Commercial Real Estate (1)\n \n \n \n \n \n \n \n1,921,252\n \n \n \n \n \n \n \n \n \n \n \n1,647,928\n \n \n \n \n \n \n \n \n \n \n \n1,356,709\n \n \n \n \n \n \n \n16.6\n \n \n \n \n \n \n \n \n \n \n \n41.6\n \n \n \n \n \n \n \n \n \nConstruction\n \n \n \n \n \n \n \n155,198\n \n \n \n \n \n \n \n \n \n \n \n117,355\n \n \n \n \n \n \n \n \n \n \n \n98,341\n \n \n \n \n \n \n \n32.2\n \n \n \n \n \n \n \n \n \n \n \n57.8\n \n \n \n \n \n \n \n \n \n Total Real Estate Loans \n \n \n \n \n \n \n \n 2,137,038 \n \n \n \n \n \n \n \n \n \n \n \n 1,826,947 \n \n \n \n \n \n \n \n \n \n \n \n 1,535,037 \n \n \n \n \n \n \n \n 17.0 \n \n \n \n \n \n \n \n \n \n \n \n 39.2 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nCommercial Business\n \n \n \n \n \n \n \n520,447\n \n \n \n \n \n \n \n \n \n \n \n443,288\n \n \n \n \n \n \n \n \n \n \n \n350,975\n \n \n \n \n \n \n \n17.4\n \n \n \n \n \n \n \n \n \n \n \n48.3\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nConsumer\n \n \n \n \n \n \n \n17,963\n \n \n \n \n \n \n \n \n \n \n \n16,558\n \n \n \n \n \n \n \n \n \n \n \n8,869\n \n \n \n \n \n \n \n8.5\n \n \n \n \n \n \n \n \n \n \n \n102.5\n \n \n \n \n \n \n \n \n \n Total Loans \n \n \n \n $ \n \n \n \n 2,675,448 \n \n \n \n \n \n \n \n $ \n \n \n \n 2,286,793 \n \n \n \n \n \n \n \n $ \n \n \n \n 1,894,881 \n \n \n \n \n \n \n \n 17.0 \n \n \n \n % \n \n \n \n \n \n \n \n 41.2 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n(1) Includes owner occupied commercial real estate.\n \n \n \n \n \n \n \nGross loans totaled $2.7 billion at December 31, 2022 , an increase of $780.6 million or 41.2% compared to December 31, 2021 .\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Period End Deposit Composition \n \n \n \n December 31 ,\n 2022 \n \n \n \n \n \n \n \n September 30 ,\n 2022 \n \n \n \n \n \n \n \n December 31 ,\n 2021 \n \n \n \n \n \n \n \n \n \n \n Current QTD\n % Change \n \n \n \n \n \n \n \n YTD\n % Change \n \n \n \n \n \nNoninterest bearing demand\n \n \n \n$\n \n \n \n404,559\n \n \n \n \n \n \n \n$\n \n \n \n380,365\n \n \n \n \n \n \n \n$\n \n \n \n398,956\n \n \n \n \n \n \n \n6.4\n \n \n \n%\n \n \n \n \n \n \n \n1.4\n \n \n \n%\n \n \n \n \n \nNOW\n \n \n \n \n \n \n \n104,057\n \n \n \n \n \n \n \n \n \n \n \n115,200\n \n \n \n \n \n \n \n \n \n \n \n119,479\n \n \n \n \n \n \n \n(9.7\n \n \n \n)\n \n \n \n \n \n \n \n(12.9\n \n \n \n)\n \n \n \n \n \nMoney Market\n \n \n \n \n \n \n \n913,868\n \n \n \n \n \n \n \n \n \n \n \n836,564\n \n \n \n \n \n \n \n \n \n \n \n954,674\n \n \n \n \n \n \n \n9.2\n \n \n \n \n \n \n \n \n \n \n \n(4.3\n \n \n \n)\n \n \n \n \n \nSavings\n \n \n \n \n \n \n \n151,944\n \n \n \n \n \n \n \n \n \n \n \n183,576\n \n \n \n \n \n \n \n \n \n \n \n193,631\n \n \n \n \n \n \n \n(17.2\n \n \n \n)\n \n \n \n \n \n \n \n(21.5\n \n \n \n)\n \n \n \n \n \nTime\n \n \n \n \n \n \n \n1,226,390\n \n \n \n \n \n \n \n \n \n \n \n770,997\n \n \n \n \n \n \n \n \n \n \n \n457,258\n \n \n \n \n \n \n \n59.1\n \n \n \n \n \n \n \n \n \n \n \n168.2\n \n \n \n \n \n \n \n \n \n Total Deposits \n \n \n \n $ \n \n \n \n 2,800,818 \n \n \n \n \n \n \n \n $ \n \n \n \n 2,286,702 \n \n \n \n \n \n \n \n $ \n \n \n \n 2,123,998 \n \n \n \n \n \n \n \n 22.5 \n \n \n \n % \n \n \n \n \n \n \n \n 31.9 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nTotal deposits were $2.8 billion at December 31, 2022 , compared to $2.1 billion at December 31, 2021 , an increase of $676.8 million , or 31.9%. The increase in deposits is primarily a result of an increase in brokered time deposits to fund the significant loan growth during the second half of 2022, increasing by $727.1 million compared to December 31, 2021 .\n \n \n \n \n \n \n BANKWELL FINANCIAL GROUP, INC. \n \n \n NONINTEREST INCOME (unaudited) \n \n \n (Dollars in thousands) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n For the Quarter Ended \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Noninterest income \n \n \n \n December 31 ,\n 2022 \n \n \n \n \n \n \n \n September 30 ,\n 2022 \n \n \n \n \n \n \n \n December 31 ,\n 2021 \n \n \n \n \n \n \n \n Dec 22 vs. Sep 22 % Change \n \n \n \n \n \n \n \n Dec 22 vs. Dec 21 % Change \n \n \n \n \n \nBank owned life insurance\n \n \n \n$\n \n \n \n273\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n271\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n270\n \n \n \n \n \n \n \n \n \n \n \n0.7\n \n \n \n%\n \n \n \n \n \n \n \n1.1\n \n \n \n%\n \n \n \n \n \nService charges and fees\n \n \n \n \n \n \n \n343\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n240\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n257\n \n \n \n \n \n \n \n \n \n \n \n42.9\n \n \n \n \n \n \n \n \n \n \n \n33.5\n \n \n \n \n \n \n \n \n \nGains (losses) and fees from sales of loans\n \n \n \n \n \n \n \n12\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n(15\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n441\n \n \n \n \n \n \n \n \n \n \n \n180.0\n \n \n \n \n \n \n \n \n \n \n \n(97.3\n \n \n \n)\n \n \n \n \n \nOther\n \n \n \n \n \n \n \n(100\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n(94\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n(143\n \n \n \n)\n \n \n \n \n \n \n \n6.4\n \n \n \n \n \n \n \n \n \n \n \n30.1\n \n \n \n \n \n \n \n \n \n Total noninterest income \n \n \n \n $ \n \n \n \n 528 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 402 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 825 \n \n \n \n \n \n \n \n \n \n \n \n 31.3 \n \n \n \n % \n \n \n \n \n \n \n \n (36.0 \n \n \n \n )% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n For the Year Ended \n \n \n \n \n \n \n \n \n \n \n \n \n \n Noninterest income \n \n \n \n December 31, 2022 \n \n \n \n \n \n \n \n December 31, 2021 \n \n \n \n \n \n \n \n % Change \n \n \n \n \n \nGains and fees from sales of loans\n \n \n \n$\n \n \n \n1,236\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n2,692\n \n \n \n \n \n \n \n(54.1\n \n \n \n)%\n \n \n \n \n \nBank owned life insurance\n \n \n \n \n \n \n \n1,069\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,023\n \n \n \n \n \n \n \n4.5\n \n \n \n \n \n \n \n \n \nService charges and fees\n \n \n \n \n \n \n \n1,072\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n872\n \n \n \n \n \n \n \n22.9\n \n \n \n \n \n \n \n \n \nOther\n \n \n \n \n \n \n \n(337\n \n \n \n)\n \n \n \n \n \n \n \n \n \n \n \n1,070\n \n \n \n \n \n \n \n(131.5\n \n \n \n)\n \n \n \n \n \n Total noninterest income \n \n \n \n $ \n \n \n \n 3,040 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 5,657 \n \n \n \n \n \n \n \n (46.3 \n \n \n \n )% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nNoninterest income decreased by $0.3 million to $0.5 million for the quarter ended December 31, 2022 compared to the quarter ended December 31, 2021 . Noninterest income decreased by $2.6 million to $3.0 million for the year ended December 31, 2022 compared to the year ended December 31, 2021 .\n \nThe decrease in noninterest income was driven by a reduction in loan sales for the quarter and year ended December 31, 2022 compared to the same periods in 2021. Noninterest income also declined for the year ended December 31, 2022 due to a one-time federal payroll tax credit for COVID-19 of $0.9 million recognized in the quarter ended March 31, 2021 . The decrease in noninterest income was also due to the absence of $0.7 million of rental income in 2022 due to the disposition of the Company's former headquarters building in the fourth quarter of 2021.\n \n \n \n \n \n \n BANKWELL FINANCIAL GROUP, INC. \n \n \n NONINTEREST EXPENSE (unaudited) \n \n \n (Dollars in thousands) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n For the Quarter Ended \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Noninterest expense \n \n \n \n December 31 ,\n 2022 \n \n \n \n \n \n \n \n September 30 ,\n 2022 \n \n \n \n \n \n \n \n December 31 ,\n 2021 \n \n \n \n \n \n \n \n Dec 22 vs. Sep 22 % Change \n \n \n \n \n \n \n \n Dec 22 vs. Dec 21 % Change \n \n \n \n \n \nSalaries and employee benefits\n \n \n \n$\n \n \n \n5,988\n \n \n \n \n \n \n \n$\n \n \n \n5,876\n \n \n \n \n \n \n \n$\n \n \n \n4,806\n \n \n \n \n \n \n \n1.9\n \n \n \n%\n \n \n \n \n \n \n \n24.6\n \n \n \n%\n \n \n \n \n \nOccupancy and equipment\n \n \n \n \n \n \n \n1,919\n \n \n \n \n \n \n \n \n \n \n \n2,035\n \n \n \n \n \n \n \n \n \n \n \n2,411\n \n \n \n \n \n \n \n(5.7\n \n \n \n)\n \n \n \n \n \n \n \n(20.4\n \n \n \n)\n \n \n \n \n \nProfessional services\n \n \n \n \n \n \n \n912\n \n \n \n \n \n \n \n \n \n \n \n994\n \n \n \n \n \n \n \n \n \n \n \n628\n \n \n \n \n \n \n \n(8.2\n \n \n \n)\n \n \n \n \n \n \n \n45.2\n \n \n \n \n \n \n \n \n \nData processing\n \n \n \n \n \n \n \n663\n \n \n \n \n \n \n \n \n \n \n \n626\n \n \n \n \n \n \n \n \n \n \n \n432\n \n \n \n \n \n \n \n5.9\n \n \n \n \n \n \n \n \n \n \n \n53.5\n \n \n \n \n \n \n \n \n \nDirector fees\n \n \n \n \n \n \n \n378\n \n \n \n \n \n \n \n \n \n \n \n325\n \n \n \n \n \n \n \n \n \n \n \n335\n \n \n \n \n \n \n \n16.3\n \n \n \n \n \n \n \n \n \n \n \n12.8\n \n \n \n \n \n \n \n \n \n FDIC insurance\n \n \n \n \n \n \n \n898\n \n \n \n \n \n \n \n \n \n \n \n255\n \n \n \n \n \n \n \n \n \n \n \n231\n \n \n \n \n \n \n \n252.2\n \n \n \n \n \n \n \n \n \n \n \n288.7\n \n \n \n \n \n \n \n \n \nMarketing\n \n \n \n \n \n \n \n112\n \n \n \n \n \n \n \n \n \n \n \n102\n \n \n \n \n \n \n \n \n \n \n \n87\n \n \n \n \n \n \n \n9.8\n \n \n \n \n \n \n \n \n \n \n \n28.7\n \n \n \n \n \n \n \n \n \nOther\n \n \n \n \n \n \n \n1,601\n \n \n \n \n \n \n \n \n \n \n \n818\n \n \n \n \n \n \n \n \n \n \n \n749\n \n \n \n \n \n \n \n95.7\n \n \n \n \n \n \n \n \n \n \n \n113.8\n \n \n \n \n \n \n \n \n \n Total noninterest expense \n \n \n \n $ \n \n \n \n 12,471 \n \n \n \n \n \n \n \n $ \n \n \n \n 11,031 \n \n \n \n \n \n \n \n $ \n \n \n \n 9,679 \n \n \n \n \n \n \n \n 13.1 \n \n \n \n % \n \n \n \n \n \n \n \n 28.8 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n For the Year Ended \n \n \n \n \n \n \n \n \n \n \n \n \n \n Noninterest expense \n \n \n \n December 31, 2022 \n \n \n \n \n \n \n \n December 31, 2021 \n \n \n \n \n \n \n \n % Change \n \n \n \n \n \nSalaries and employee benefits\n \n \n \n$\n \n \n \n22,237\n \n \n \n \n \n \n \n$\n \n \n \n18,317\n \n \n \n \n \n \n \n21.4\n \n \n \n%\n \n \n \n \n \nOccupancy and equipment\n \n \n \n \n \n \n \n8,297\n \n \n \n \n \n \n \n \n \n \n \n10,682\n \n \n \n \n \n \n \n(22.3\n \n \n \n)\n \n \n \n \n \nProfessional services\n \n \n \n \n \n \n \n3,887\n \n \n \n \n \n \n \n \n \n \n \n2,260\n \n \n \n \n \n \n \n72.0\n \n \n \n \n \n \n \n \n \nData processing\n \n \n \n \n \n \n \n2,632\n \n \n \n \n \n \n \n \n \n \n \n2,409\n \n \n \n \n \n \n \n9.3\n \n \n \n \n \n \n \n \n \nDirector fees\n \n \n \n \n \n \n \n1,394\n \n \n \n \n \n \n \n \n \n \n \n1,303\n \n \n \n \n \n \n \n7.0\n \n \n \n \n \n \n \n \n \n FDIC insurance\n \n \n \n \n \n \n \n1,638\n \n \n \n \n \n \n \n \n \n \n \n1,232\n \n \n \n \n \n \n \n33.0\n \n \n \n \n \n \n \n \n \nMarketing\n \n \n \n \n \n \n \n366\n \n \n \n \n \n \n \n \n \n \n \n404\n \n \n \n \n \n \n \n(9.4\n \n \n \n)\n \n \n \n \n \nOther\n \n \n \n \n \n \n \n3,912\n \n \n \n \n \n \n \n \n \n \n \n3,132\n \n \n \n \n \n \n \n24.9\n \n \n \n \n \n \n \n \n \n Total noninterest expense \n \n \n \n $ \n \n \n \n 44,363 \n \n \n \n \n \n \n \n $ \n \n \n \n 39,739 \n \n \n \n \n \n \n \n 11.6 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nNoninterest expense increased by $2.8 million to $12.5 million for the quarter ended December 31, 2022 compared to the quarter ended December 31, 2021 . Noninterest expense increased by $4.6 million to $44.4 million for the year ended December 31, 2022 compared to the year ended December 31, 2021 . The increase in noninterest expense was primarily driven by an increase in salaries and employee benefits expense, professional services expense, FDIC insurance, and customer fraud reimbursement and deposit account fraud within Other. These increases were partially offset by a decrease in occupancy and equipment expense.\n \nSalaries and employee benefits expense totaled $6.0 million for the quarter ended December 31, 2022 , an increase of $1.2 million when compared to the same period in 2021. Salaries and employee benefits expense totaled $22.2 million for the year ended December 31, 2022 , an increase of $3.9 million when compared to the same period in 2021. The increase in salaries and employee benefits expense was driven by an increase in full time equivalent employees, as well as an increase in variable compensation as a result of the Bank's overall growth and improved performance. Full time equivalent employees totaled 136 at December 31, 2022 compared to 126 for the same period in 2021. The increase in salaries and employee benefits expense was partially offset by an increase in deferred loan costs due to higher loan originations.\n \nProfessional services expense totaled $0.9 million for the quarter ended December 31, 2022 , an increase of $0.3 million when compared to the same period in 2021. Professional services expense totaled $3.9 million for the year ended December 31, 2022 , an increase of $1.6 million when compared to the same period in 2021. The increase in professional services expense was primarily driven by consulting fees associated with various projects, including our core system conversion.\n \n FDIC insurance expense totaled $0.9 million for the quarter ended December 31, 2022 , an increase of $0.7 million when compared to the same period in 2021. FDIC insurance expense totaled $1.6 million for the year ended December 31, 2022 , an increase of $0.4 million when compared to the same period in 2021. The higher FDIC insurance expense is attributed to the overall balance sheet growth and increased use of brokered deposits.\n \nOther expense totaled $1.6 million for the quarter ended December 31, 2022 , an increase of $0.9 million when compared to the same period in 2021. Other expense totaled $3.9 million for the year ended December 31, 2022 , an increase of $0.8 million . The increase was mainly attributable to four events of customer reimbursed fraud and deposit account fraud recognized in the quarter ended December 31 2022 , the largest of which was a $189 thousand customer reimbursement.\n \nOccupancy and equipment expense totaled $1.9 million for the quarter ended December 31, 2022 , a decrease of $0.5 million when compared to the same period in 2021. Occupancy and equipment expense totaled $8.3 million for the year ended December 31, 2022 , a decrease of $2.4 million when compared to the same period in 2021. The decrease in occupancy and equipment expense was primarily driven by the curtailment of additional cleaning costs associated with precautions taken to prevent the spread of COVID-19 during the year ended December 31, 2021 . In addition, the decrease in occupancy and equipment expense was impacted by a reduction in lease expense as a result of the branch closure in New Canaan , which occurred during the third quarter of 2021.\n \n \n \n \n \n \n BANKWELL FINANCIAL GROUP, INC. \n \n \n RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited) \n \n \n (Dollars in thousands, except share data) \n \n \n \n \n \n \n \n \n \n \n \n \n \n As of \n \n \n \n \n \n Computation of Tangible Common Equity to Tangible Assets \n \n \n \n December 31 ,\n 2022 \n \n \n \n \n \n \n \n September 30 ,\n 2022 \n \n \n \n \n \n \n \n June 30 ,\n 2022 \n \n \n \n \n \n \n \n March 31 ,\n 2022 \n \n \n \n \n \n \n \n December 31 ,\n 2021 \n \n \n \n \n \nTotal Equity\n \n \n \n$\n \n \n \n238,469\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n231,500\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n225,467\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n210,220\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n201,987\n \n \n \n \n \n \n \n \n \nLess:\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Goodwill \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \nOther intangibles\n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n Tangible Common Equity \n \n \n \n $ \n \n \n \n 235,880 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 228,911 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 222,878 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 207,631 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 199,398 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nTotal Assets\n \n \n \n$\n \n \n \n3,252,449\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n2,722,995\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n2,435,552\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n2,496,877\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n2,456,264\n \n \n \n \n \n \n \n \n \nLess:\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Goodwill \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \nOther intangibles\n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n Tangible Assets \n \n \n \n $ \n \n \n \n 3,249,860 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 2,720,406 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 2,432,963 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 2,494,288 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 2,453,675 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Tangible Common Equity to Tangible Assets \n \n \n \n \n \n \n \n 7.26 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n 8.41 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n 9.16 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n 8.32 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n 8.13 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n As of \n \n \n \n \n \n Computation of Fully Diluted Tangible Book Value per Common Share \n \n \n \n December 31 ,\n 2022 \n \n \n \n \n \n \n \n September 30 ,\n 2022 \n \n \n \n \n \n \n \n June 30 ,\n 2022 \n \n \n \n \n \n \n \n March 31 ,\n 2022 \n \n \n \n \n \n \n \n December 31 ,\n 2021 \n \n \n \n \n \nTotal shareholders' equity\n \n \n \n$\n \n \n \n238,469\n \n \n \n \n \n \n \n$\n \n \n \n231,500\n \n \n \n \n \n \n \n$\n \n \n \n225,467\n \n \n \n \n \n \n \n$\n \n \n \n210,220\n \n \n \n \n \n \n \n$\n \n \n \n201,987\n \n \n \n \n \nLess:\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nPreferred stock\n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n Common shareholders' equity \n \n \n \n $ \n \n \n \n 238,469 \n \n \n \n \n \n \n \n $ \n \n \n \n 231,500 \n \n \n \n \n \n \n \n $ \n \n \n \n 225,467 \n \n \n \n \n \n \n \n $ \n \n \n \n 210,220 \n \n \n \n \n \n \n \n $ \n \n \n \n 201,987 \n \n \n \n \n \nLess:\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Goodwill \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \nOther intangibles\n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n Tangible common shareholders' equity \n \n \n \n $ \n \n \n \n 235,880 \n \n \n \n \n \n \n \n $ \n \n \n \n 228,911 \n \n \n \n \n \n \n \n $ \n \n \n \n 222,878 \n \n \n \n \n \n \n \n $ \n \n \n \n 207,631 \n \n \n \n \n \n \n \n $ \n \n \n \n 199,398 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nCommon shares issued and outstanding\n \n \n \n \n \n \n \n7,730,699\n \n \n \n \n \n \n \n \n \n \n \n7,711,843\n \n \n \n \n \n \n \n \n \n \n \n7,752,389\n \n \n \n \n \n \n \n \n \n \n \n7,761,338\n \n \n \n \n \n \n \n \n \n \n \n7,803,166\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Fully Diluted Tangible Book Value per Common Share \n \n \n \n $ \n \n \n \n 30.51 \n \n \n \n \n \n \n \n $ \n \n \n \n 29.68 \n \n \n \n \n \n \n \n $ \n \n \n \n 28.75 \n \n \n \n \n \n \n \n $ \n \n \n \n 26.75 \n \n \n \n \n \n \n \n $ \n \n \n \n 25.55 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n BANKWELL FINANCIAL GROUP, INC. \n \n \n RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited) - Continued \n \n \n (Dollars in thousands) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n For the Quarter Ended \n \n \n \n \n \n \n \n For the Year Ended \n \n \n \n \n \n Computation of Efficiency Ratio \n \n \n \n December 31 ,\n 2022 \n \n \n \n \n \n \n \n September 30 ,\n 2022 \n \n \n \n \n \n \n \n June 30 ,\n 2022 \n \n \n \n \n \n \n \n March 31 ,\n 2022 \n \n \n \n \n \n \n \n December 31 ,\n 2021 \n \n \n \n \n \n \n \n December 31 ,\n 2022 \n \n \n \n \n \n \n \n December 31 ,\n 2021 \n \n \n \n \n \nNoninterest expense\n \n \n \n$\n \n \n \n12,471\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n11,031\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n10,936\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n9,925\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n9,679\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n44,363\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n39,739\n \n \n \n \n \n \n \n \n \nLess:\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nAmortization of intangible assets\n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n48\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n76\n \n \n \n \n \n \n \n \n \nOther real estate owned expenses\n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n Adjusted noninterest expense \n \n \n \n $ \n \n \n \n 12,471 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 11,031 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 10,936 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 9,925 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 9,631 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 44,363 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 39,663 \n \n \n \n \n \n \n \n \n \nNet interest income\n \n \n \n$\n \n \n \n26,809\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n24,601\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n23,823\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n19,510\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n18,928\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n94,743\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n67,886\n \n \n \n \n \n \n \n \n \nNoninterest income\n \n \n \n \n \n \n \n528\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n402\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,152\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n958\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n825\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n3,040\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n5,657\n \n \n \n \n \n \n \n \n \nLess:\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nNet gain on sale of available for sale securities\n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \nGain on sale of other real estate owned, net\n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n Operating revenue \n \n \n \n $ \n \n \n \n 27,337 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 25,003 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 24,975 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 20,468 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 19,753 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 97,783 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 73,543 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Efficiency ratio \n \n \n \n \n \n \n \n 45.6 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n 44.1 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n 43.8 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n 48.5 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n 48.8 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n 45.4 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n 53.9 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n For the Quarter Ended \n \n \n \n \n \n \n \n For the Year Ended \n \n \n \n \n \n Computation of Return on Average Tangible Common Equity \n \n \n \n December 31 ,\n 2022 \n \n \n \n \n \n \n \n September 30 ,\n 2022 \n \n \n \n \n \n \n \n June 30 ,\n 2022 \n \n \n \n \n \n \n \n March 31 ,\n 2022 \n \n \n \n \n \n \n \n December 31 ,\n 2021 \n \n \n \n \n \n \n \n December 31 ,\n 2022 \n \n \n \n \n \n \n \n December 31 ,\n 2021 \n \n \n \n \n \nNet Income Attributable to Common Shareholders\n \n \n \n $ \n \n \n \n 8,021 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 9,174 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 12,022 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 8,212 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 7,814 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 37,429 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 26,586 \n \n \n \n \n \n \n \n \n \nTotal average shareholders' equity\n \n \n \n$\n \n \n \n237,922\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n231,378\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n218,250\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n207,541\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n200,752\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n223,874\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n191,808\n \n \n \n \n \n \n \n \n \nLess:\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nAverage Goodwill \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,589\n \n \n \n \n \n \n \n \n \nAverage Other intangibles\n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n45\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n—\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n59\n \n \n \n \n \n \n \n \n \nAverage tangible common equity\n \n \n \n $ \n \n \n \n 235,333 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 228,789 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 215,661 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 204,952 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 198,118 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 221,285 \n \n \n \n \n \n \n \n \n \n \n \n $ \n \n \n \n 189,160 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Annualized Return on Average Tangible Common Equity \n \n \n \n \n \n \n \n 13.52 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n 15.91 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n 22.36 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n 16.25 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n 15.65 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n 16.91 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n 14.05 \n \n \n \n % \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n BANKWELL FINANCIAL GROUP, INC. \n \n \n NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - QTD (unaudited) \n \n \n (Dollars in thousands) \n \n \n \n \n \n \n \n \n \n \n \n \n \n For the Quarter Ended \n \n \n \n \n \n \n \n \n \n December 31, 2022 \n \n \n \n \n \n \n \n December 31, 2021 \n \n \n \n \n \n \n \n \n \n Average Balance \n \n \n \n \n \n \n \n Interest \n \n \n \n \n \n \n \n Yield/ \n \n \n Rate (4) \n \n \n \n \n \n \n \n Average \n \n \n Balance \n \n \n \n \n \n \n \n Interest \n \n \n \n \n \n \n \n Yield/ \n \n \n Rate (4) \n \n \n \n \n \nAssets:\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nCash and Fed funds sold\n \n \n \n$\n \n \n \n231,767\n \n \n \n \n \n \n \n$\n \n \n \n2,150\n \n \n \n \n \n \n \n3.68\n \n \n \n%\n \n \n \n \n \n \n \n$\n \n \n \n233,196\n \n \n \n \n \n \n \n$\n \n \n \n90\n \n \n \n \n \n \n \n0.15\n \n \n \n%\n \n \n \n \n \nSecurities(1)\n \n \n \n \n \n \n \n123,274\n \n \n \n \n \n \n \n \n \n \n \n887\n \n \n \n \n \n \n \n2.88\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n104,797\n \n \n \n \n \n \n \n \n \n \n \n756\n \n \n \n \n \n \n \n2.89\n \n \n \n \n \n \n \n \n \nLoans:\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nCommercial real estate\n \n \n \n \n \n \n \n1,828,306\n \n \n \n \n \n \n \n \n \n \n \n24,998\n \n \n \n \n \n \n \n5.35\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,337,147\n \n \n \n \n \n \n \n \n \n \n \n15,104\n \n \n \n \n \n \n \n4.42\n \n \n \n \n \n \n \n \n \nResidential real estate\n \n \n \n \n \n \n \n61,057\n \n \n \n \n \n \n \n \n \n \n \n599\n \n \n \n \n \n \n \n3.92\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n83,763\n \n \n \n \n \n \n \n \n \n \n \n694\n \n \n \n \n \n \n \n3.31\n \n \n \n \n \n \n \n \n \nConstruction\n \n \n \n \n \n \n \n138,552\n \n \n \n \n \n \n \n \n \n \n \n2,185\n \n \n \n \n \n \n \n6.17\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n95,611\n \n \n \n \n \n \n \n \n \n \n \n972\n \n \n \n \n \n \n \n3.98\n \n \n \n \n \n \n \n \n \nCommercial business\n \n \n \n \n \n \n \n499,030\n \n \n \n \n \n \n \n \n \n \n \n8,549\n \n \n \n \n \n \n \n6.70\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n347,394\n \n \n \n \n \n \n \n \n \n \n \n4,222\n \n \n \n \n \n \n \n4.75\n \n \n \n \n \n \n \n \n \nConsumer\n \n \n \n \n \n \n \n16,875\n \n \n \n \n \n \n \n \n \n \n \n214\n \n \n \n \n \n \n \n5.05\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n8,904\n \n \n \n \n \n \n \n \n \n \n \n89\n \n \n \n \n \n \n \n3.97\n \n \n \n \n \n \n \n \n \nTotal loans\n \n \n \n \n \n \n \n2,543,820\n \n \n \n \n \n \n \n \n \n \n \n36,545\n \n \n \n \n \n \n \n5.62\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,872,819\n \n \n \n \n \n \n \n \n \n \n \n21,081\n \n \n \n \n \n \n \n4.40\n \n \n \n \n \n \n \n \n \n Federal Home Loan Bank stock\n \n \n \n \n \n \n \n5,371\n \n \n \n \n \n \n \n \n \n \n \n64\n \n \n \n \n \n \n \n4.72\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,814\n \n \n \n \n \n \n \n \n \n \n \n16\n \n \n \n \n \n \n \n2.28\n \n \n \n \n \n \n \n \n \nTotal earning assets\n \n \n \n \n \n \n \n2,904,232\n \n \n \n \n \n \n \n$\n \n \n \n39,646\n \n \n \n \n \n \n \n5.34\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n2,213,626\n \n \n \n \n \n \n \n$\n \n \n \n21,943\n \n \n \n \n \n \n \n3.88\n \n \n \n%\n \n \n \n \n \nOther assets\n \n \n \n \n \n \n \n76,703\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n130,512\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nTotal assets\n \n \n \n$\n \n \n \n2,980,935\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n2,344,138\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nLiabilities and shareholders' equity:\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nInterest bearing liabilities:\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nNOW\n \n \n \n$\n \n \n \n107,118\n \n \n \n \n \n \n \n$\n \n \n \n45\n \n \n \n \n \n \n \n0.17\n \n \n \n%\n \n \n \n \n \n \n \n$\n \n \n \n114,158\n \n \n \n \n \n \n \n$\n \n \n \n51\n \n \n \n \n \n \n \n0.18\n \n \n \n%\n \n \n \n \n \nMoney market\n \n \n \n \n \n \n \n837,486\n \n \n \n \n \n \n \n \n \n \n \n4,158\n \n \n \n \n \n \n \n1.97\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n874,352\n \n \n \n \n \n \n \n \n \n \n \n1,097\n \n \n \n \n \n \n \n0.50\n \n \n \n \n \n \n \n \n \nSavings\n \n \n \n \n \n \n \n170,903\n \n \n \n \n \n \n \n \n \n \n \n581\n \n \n \n \n \n \n \n1.35\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n190,118\n \n \n \n \n \n \n \n \n \n \n \n100\n \n \n \n \n \n \n \n0.21\n \n \n \n \n \n \n \n \n \nTime\n \n \n \n \n \n \n \n1,002,012\n \n \n \n \n \n \n \n \n \n \n \n6,299\n \n \n \n \n \n \n \n2.49\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n438,627\n \n \n \n \n \n \n \n \n \n \n \n950\n \n \n \n \n \n \n \n0.86\n \n \n \n \n \n \n \n \n \nTotal interest bearing deposits\n \n \n \n \n \n \n \n2,117,519\n \n \n \n \n \n \n \n \n \n \n \n11,083\n \n \n \n \n \n \n \n2.08\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,617,255\n \n \n \n \n \n \n \n \n \n \n \n2,198\n \n \n \n \n \n \n \n0.54\n \n \n \n \n \n \n \n \n \nBorrowed Money\n \n \n \n \n \n \n \n170,202\n \n \n \n \n \n \n \n \n \n \n \n1,701\n \n \n \n \n \n \n \n3.91\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n89,726\n \n \n \n \n \n \n \n \n \n \n \n767\n \n \n \n \n \n \n \n3.35\n \n \n \n \n \n \n \n \n \nTotal interest bearing liabilities\n \n \n \n \n \n \n \n2,287,721\n \n \n \n \n \n \n \n$\n \n \n \n12,784\n \n \n \n \n \n \n \n2.22\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n1,706,981\n \n \n \n \n \n \n \n$\n \n \n \n2,965\n \n \n \n \n \n \n \n0.69\n \n \n \n%\n \n \n \n \n \nNoninterest bearing deposits\n \n \n \n \n \n \n \n407,923\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n383,557\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nOther liabilities\n \n \n \n \n \n \n \n47,369\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n52,848\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nTotal liabilities\n \n \n \n \n \n \n \n2,743,013\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,143,386\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nShareholders' equity\n \n \n \n \n \n \n \n237,922\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n200,752\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nTotal liabilities and shareholders' equity\n \n \n \n$\n \n \n \n2,980,935\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n2,344,138\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nNet interest income(2)\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n26,862\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n18,978\n \n \n \n \n \n \n \n \n \n \n \n \n \nInterest rate spread\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n3.12\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n3.19\n \n \n \n%\n \n \n \n \n \nNet interest margin(3)\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n3.70\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n3.43\n \n \n \n%\n \n \n \n \n \n \n(1)\n \n \n \n \n \n \n \nAverage balances and yields for securities are based on amortized cost.\n \n \n \n \n \n(2)\n \n \n \n \n \n \n \nThe adjustment for securities and loans taxable equivalency amounted to $52 thousand and $50 thousand for the quarters ended December 31, 2022 and 2021, respectively.\n \n \n \n \n \n(3)\n \n \n \n \n \n \n \nAnnualized net interest income as a percentage of earning assets.\n \n \n \n \n \n(4)\n \n \n \n \n \n \n \nYields are calculated using the contractual day count convention for each respective product type.\n \n \n \n \n \n \n \n \n \n \n \n BANKWELL FINANCIAL GROUP, INC. \n \n \n NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - YTD (unaudited) \n \n \n (Dollars in thousands) \n \n \n \n \n \n \n \n \n \n \n \n \n \n For the Year Ended \n \n \n \n \n \n \n \n \n \n December 31, 2022 \n \n \n \n \n \n \n \n December 31, 2021 \n \n \n \n \n \n \n \n \n \n Average \n \n \n Balance \n \n \n \n \n \n \n \n Interest \n \n \n \n \n \n \n \n Yield/ \n \n \n Rate (4) \n \n \n \n \n \n \n \n Average \n \n \n Balance \n \n \n \n \n \n \n \n Interest \n \n \n \n \n \n \n \n Yield/ \n \n \n Rate (4) \n \n \n \n \n \nAssets:\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nCash and Fed funds sold\n \n \n \n$\n \n \n \n238,233\n \n \n \n \n \n \n \n$\n \n \n \n3,500\n \n \n \n \n \n \n \n1.47\n \n \n \n%\n \n \n \n \n \n \n \n$\n \n \n \n294,471\n \n \n \n \n \n \n \n$\n \n \n \n376\n \n \n \n \n \n \n \n0.13\n \n \n \n%\n \n \n \n \n \nSecurities(1)\n \n \n \n \n \n \n \n118,591\n \n \n \n \n \n \n \n \n \n \n \n3,280\n \n \n \n \n \n \n \n2.77\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n103,592\n \n \n \n \n \n \n \n \n \n \n \n3,071\n \n \n \n \n \n \n \n2.96\n \n \n \n \n \n \n \n \n \nLoans:\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nCommercial real estate\n \n \n \n \n \n \n \n1,532,971\n \n \n \n \n \n \n \n \n \n \n \n76,103\n \n \n \n \n \n \n \n4.90\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,225,770\n \n \n \n \n \n \n \n \n \n \n \n55,995\n \n \n \n \n \n \n \n4.51\n \n \n \n \n \n \n \n \n \nResidential real estate\n \n \n \n \n \n \n \n66,028\n \n \n \n \n \n \n \n \n \n \n \n2,408\n \n \n \n \n \n \n \n3.65\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n99,101\n \n \n \n \n \n \n \n \n \n \n \n3,363\n \n \n \n \n \n \n \n3.39\n \n \n \n \n \n \n \n \n \nConstruction\n \n \n \n \n \n \n \n115,902\n \n \n \n \n \n \n \n \n \n \n \n6,666\n \n \n \n \n \n \n \n5.67\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n97,163\n \n \n \n \n \n \n \n \n \n \n \n3,780\n \n \n \n \n \n \n \n3.84\n \n \n \n \n \n \n \n \n \nCommercial business\n \n \n \n \n \n \n \n427,178\n \n \n \n \n \n \n \n \n \n \n \n25,561\n \n \n \n \n \n \n \n5.90\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n313,422\n \n \n \n \n \n \n \n \n \n \n \n14,589\n \n \n \n \n \n \n \n4.59\n \n \n \n \n \n \n \n \n \nConsumer\n \n \n \n \n \n \n \n10,121\n \n \n \n \n \n \n \n \n \n \n \n504\n \n \n \n \n \n \n \n4.98\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n7,929\n \n \n \n \n \n \n \n \n \n \n \n315\n \n \n \n \n \n \n \n3.97\n \n \n \n \n \n \n \n \n \nTotal loans\n \n \n \n \n \n \n \n2,152,200\n \n \n \n \n \n \n \n \n \n \n \n111,242\n \n \n \n \n \n \n \n5.10\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,743,385\n \n \n \n \n \n \n \n \n \n \n \n78,042\n \n \n \n \n \n \n \n4.42\n \n \n \n \n \n \n \n \n \n Federal Home Loan Bank stock\n \n \n \n \n \n \n \n4,132\n \n \n \n \n \n \n \n \n \n \n \n124\n \n \n \n \n \n \n \n3.00\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n4,156\n \n \n \n \n \n \n \n \n \n \n \n88\n \n \n \n \n \n \n \n2.12\n \n \n \n \n \n \n \n \n \nTotal earning assets\n \n \n \n \n \n \n \n2,513,156\n \n \n \n \n \n \n \n$\n \n \n \n118,146\n \n \n \n \n \n \n \n4.64\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n2,145,604\n \n \n \n \n \n \n \n$\n \n \n \n81,577\n \n \n \n \n \n \n \n3.75\n \n \n \n%\n \n \n \n \n \nOther assets\n \n \n \n \n \n \n \n86,485\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n120,955\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nTotal assets\n \n \n \n$\n \n \n \n2,599,641\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n2,266,559\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nLiabilities and shareholders' equity:\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nInterest bearing liabilities:\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nNOW\n \n \n \n$\n \n \n \n118,837\n \n \n \n \n \n \n \n$\n \n \n \n203\n \n \n \n \n \n \n \n0.17\n \n \n \n%\n \n \n \n \n \n \n \n$\n \n \n \n111,515\n \n \n \n \n \n \n \n$\n \n \n \n198\n \n \n \n \n \n \n \n0.18\n \n \n \n%\n \n \n \n \n \nMoney market\n \n \n \n \n \n \n \n891,095\n \n \n \n \n \n \n \n \n \n \n \n8,830\n \n \n \n \n \n \n \n0.99\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n804,679\n \n \n \n \n \n \n \n \n \n \n \n4,042\n \n \n \n \n \n \n \n0.50\n \n \n \n \n \n \n \n \n \nSavings\n \n \n \n \n \n \n \n188,186\n \n \n \n \n \n \n \n \n \n \n \n1,259\n \n \n \n \n \n \n \n0.67\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n175,629\n \n \n \n \n \n \n \n \n \n \n \n413\n \n \n \n \n \n \n \n0.23\n \n \n \n \n \n \n \n \n \nTime\n \n \n \n \n \n \n \n617,480\n \n \n \n \n \n \n \n \n \n \n \n9,072\n \n \n \n \n \n \n \n1.47\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n508,651\n \n \n \n \n \n \n \n \n \n \n \n5,790\n \n \n \n \n \n \n \n1.14\n \n \n \n \n \n \n \n \n \nTotal interest bearing deposits\n \n \n \n \n \n \n \n1,815,598\n \n \n \n \n \n \n \n \n \n \n \n19,364\n \n \n \n \n \n \n \n1.07\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n1,600,474\n \n \n \n \n \n \n \n \n \n \n \n10,443\n \n \n \n \n \n \n \n0.65\n \n \n \n \n \n \n \n \n \nBorrowed Money\n \n \n \n \n \n \n \n118,960\n \n \n \n \n \n \n \n \n \n \n \n3,838\n \n \n \n \n \n \n \n3.18\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n103,919\n \n \n \n \n \n \n \n \n \n \n \n3,047\n \n \n \n \n \n \n \n2.89\n \n \n \n \n \n \n \n \n \nTotal interest bearing liabilities\n \n \n \n \n \n \n \n1,934,558\n \n \n \n \n \n \n \n$\n \n \n \n23,202\n \n \n \n \n \n \n \n1.20\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n1,704,393\n \n \n \n \n \n \n \n$\n \n \n \n13,490\n \n \n \n \n \n \n \n0.79\n \n \n \n%\n \n \n \n \n \nNoninterest bearing deposits\n \n \n \n \n \n \n \n401,005\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n323,648\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nOther liabilities\n \n \n \n \n \n \n \n40,204\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n46,710\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nTotal liabilities\n \n \n \n \n \n \n \n2,375,767\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2,074,751\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nShareholders' equity\n \n \n \n \n \n \n \n223,874\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n191,808\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nTotal liabilities and shareholders' equity\n \n \n \n$\n \n \n \n2,599,641\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n2,266,559\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nNet interest income(2)\n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n94,944\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n$\n \n \n \n68,087\n \n \n \n \n \n \n \n \n \n \n \n \n \nInterest rate spread\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n3.44\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n2.96\n \n \n \n%\n \n \n \n \n \nNet interest margin(3)\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n3.78\n \n \n \n%\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n3.17\n \n \n \n%\n \n \n \n \n \n \n(1)\n \n \n \n \n \n \n \nAverage balances and yields for securities are based on amortized cost.\n \n \n \n \n \n(2)\n \n \n \n \n \n \n \nThe adjustment for securities and loans taxable equivalency amounted to $200 thousand and $201 t...

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