Bankwell Financial Group Reports Operating Results for the First Quarter and Declares Second Quarter Dividend

Published

NEW CANAAN, Conn.--(BUSINESS WIRE)-- Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $3.8 million, or $0.48 per share for the first quarter of 2024, versus $10.4 million, or $1.33 per share, for the same period in 2023. Pre-tax, pre-provision net revenue ("PPNR") was $8.8 million, or $1.14 per share, for the first quarter of 2024, versus $14.4 million, or $1.89 per share for the same period in 2023.

The Company's Board of Directors declared a $0.20 per share cash dividend, payable May 21, 2024 to shareholders of record on May 10, 2024.

We recommend reading this earnings release in conjunction with the First Quarter 2024 Investor Presentation, located at http://investor.mybankwell.com/Presentations and included as an exhibit to our April 24, 2024 Current Report on Form 8-K.

Notes Bankwell Financial Group President and CEO, Christopher R. Gruseke:

"Our first quarter earnings of $0.48 per share include the impact of $3.7 million in charge offs related to previously disclosed non-performing loans. The main components of the charge offs were approximately $2.8 million, attributable to a suburban Connecticut office building, and approximately $0.7 million, attributable to the non-guaranteed portions of 2 SBA loans. We encourage investors to review the accompanying Investor Presentation for further details regarding the Bank’s loan portfolio.

Absent any action from the Federal Reserve, we expect our net interest margin to trough slightly higher and earlier than previously projected at approximately 255 to 265 basis points during 2Q 2024. This margin, coupled with the Company’s consistently efficient expense structure, provides a solid earnings base during this challenging interest rate environment. We also re-affirm prior guidance regarding non-interest expense of $53 to $54 million for the full year 2024."

First Quarter 2024 Highlights:

  • PPNR was $8.8 million for the quarter ended March 31, 2024.
  • Net income of $3.8 million reflects the impact of $3.7 million of loan charge offs.
  • Total gross loans were $2.7 billion, decreasing $39.0 million, or 1.4%, compared to December 31, 2023.
  • Average yield on total loans was 6.37% for the quarter ended March 31, 2024.
  • Nonperforming loans as a percentage of total loans was 1.74% as of March 31, 2024, down from 1.81% as of December 31, 2023.
  • Deposits were $2.7 billion, decreasing $63.2 million, or 2.3%, compared to December 31, 2023.
  • Brokered deposits decreased $120.0 million, when compared to December 31, 2023.
  • Noninterest bearing deposits increased 8.7% to $376.2 million, when compared to December 31, 2023.
  • FDIC-insured deposits totaled $1.9 billion and represent 71.4% of total deposits as of March 31, 2024.
  • Return on average assets was 0.47% for the quarter ended March 31, 2024.
  • Return on average tangible common equity was 5.65% for the quarter ended March 31, 2024.
  • The net interest margin was 2.71% for the quarter ended March 31, 2024.
  • Noninterest expense to average assets was 1.66% for the quarter ended March 31, 2024.
  • Investment securities totaled $126.2 million and represent 4.0% of total assets.
  • The Company repurchased 45,924 shares at a weighted average price of $25.33 per share through April 11, 2024.

Earnings and Performance

Revenues (net interest income plus noninterest income) for the quarter ended March 31, 2024 were $22.1 million, versus $27.1 million for the quarter ended March 31, 2023. The decrease in revenues for the quarter was attributable to an increase in interest expense and lower gains from loan sales partially offset by an increase in interest on loans, given higher loan yields1 and prepayment fees.

Net income for the quarter ended March 31, 2024 was $3.8 million, versus $10.4 million for the quarter ended March 31, 2023. The decrease in net income for the quarter ended 2024 was primarily due to the aforementioned decrease in revenues and an increase in provision for credit losses.

Basic and diluted earnings per share were $0.48 and $0.48, respectively, for the quarter ended March 31, 2024 compared to basic and diluted earnings per share of $1.34 and $1.33, respectively, for the quarter ended March 31, 2023.

The net interest margin (fully taxable equivalent basis) for the quarters ended March 31, 2024 and March 31, 2023 was 2.71% and 3.24%, respectively. The decrease in the net interest margin was due to an increase in funding costs partially offset by an increase in interest income on earning assets.

Allowance for Credit Losses - Loans ("ACL-Loans")

The ACL-Loans was $28.0 million as of March 31, 2024 compared to $27.9 million as of December 31, 2023. The ACL-Loans as a percentage of total loans was 1.04% as of March 31, 2024 compared to 1.03% as of December 31, 2023. Provision for credit losses was $3.7 million for the quarter ended March 31, 2024. The provision for credit losses for the quarter was primarily a result of net loan charge offs of $3.7 million.

Financial Condition

Assets totaled $3.2 billion at March 31, 2024, a decrease of $60.2 million or 1.9% compared to December 31, 2023. Gross loans totaled $2.7 billion at March 31, 2024, a decrease of $39.0 million, or 1.4% compared to December 31, 2023. Deposits totaled $2.7 billion at March 31, 2024, a decrease of $63.2 million, or 2.3% compared to December 31, 2023.

Capital

Shareholders’ equity totaled $268.0 million as of March 31, 2024, an increase of $2.3 million compared to December 31, 2023, primarily a result of net income of $3.8 million for the three months ended March 31, 2024. The increase was partially offset by dividends paid of $1.6 million and share repurchases of $0.9 million.

1 - The increase in overall loan yields was 50 bps for the quarter ended March 31, 2024.

About Bankwell Financial Group

Bankwell 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.

For more information, visit www.mybankwell.com.

This press release may contain certain forward-looking statements about the Company. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the banking industry or securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and its subsidiaries are engaged.

Non-GAAP Financial Measures

In addition to evaluating the Company's financial performance in accordance with U.S. generally accepted accounting principles ("GAAP"), management may evaluate certain non-GAAP financial measures, such as the efficiency ratio. A computation and reconciliation of certain non-GAAP financial measures used for these purposes is contained in the accompanying Reconciliation of GAAP to Non-GAAP Measures tables. We believe that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends and financial position. For example, the Company believes that the efficiency ratio is useful in the assessment of financial performance, including noninterest expense control. The Company believes that tangible common equity, tangible assets, tangible common equity to tangible assets, tangible common shareholders' equity, fully diluted tangible book value per common share, adjusted noninterest 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, pre-tax, pre-provision net revenue, 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.

 

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS (unaudited)

(Dollars in thousands)

 

 

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

ASSETS

 

 

 

 

 

 

Cash and due from banks

 

$

245,043

 

 

$

267,521

 

 

$

249,812

 

Federal funds sold

 

 

2,584

 

 

 

1,636

 

 

 

27,370

 

Cash and cash equivalents

 

 

247,627

 

 

 

269,157

 

 

 

277,182

 

 

 

 

 

 

 

 

Investment securities

 

 

 

 

 

 

Marketable equity securities, at fair value

 

 

2,069

 

 

 

2,070

 

 

 

2,028

 

Available for sale investment securities, at fair value

 

 

108,417

 

 

 

109,736

 

 

 

103,171

 

Held to maturity investment securities, at amortized cost

 

 

15,739

 

 

 

15,817

 

 

 

15,931

 

Total investment securities

 

 

126,225

 

 

 

127,623

 

 

 

121,130

 

Loans receivable (net of ACL-Loans of $27,991, $27,946, and $27,998 at March 31, 2024, December 31, 2023, and March 31, 2023, respectively)

 

 

2,646,686

 

 

 

2,685,301

 

 

 

2,724,514

 

Accrued interest receivable

 

 

15,104

 

 

 

14,863

 

 

 

14,261

 

Federal Home Loan Bank stock, at cost

 

 

5,655

 

 

 

5,696

 

 

 

5,234

 

Premises and equipment, net

 

 

26,161

 

 

 

27,018

 

 

 

27,619

 

Bank-owned life insurance

 

 

51,764

 

 

 

51,435

 

 

 

50,524

 

Goodwill

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

Deferred income taxes, net

 

 

9,137

 

 

 

9,383

 

 

 

8,692

 

Other assets

 

 

24,326

 

 

 

22,417

 

 

 

20,573

 

Total assets

 

$

3,155,274

 

 

$

3,215,482

 

 

$

3,252,318

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

Noninterest bearing deposits

 

$

376,248

 

 

$

346,172

 

 

$

377,667

 

Interest bearing deposits

 

 

2,297,274

 

 

 

2,390,585

 

 

 

2,420,641

 

Total deposits

 

 

2,673,522

 

 

 

2,736,757

 

 

 

2,798,308

 

 

 

 

 

 

 

 

Advances from the Federal Home Loan Bank

 

 

90,000

 

 

 

90,000

 

 

 

90,000

 

Subordinated debentures

 

 

69,266

 

 

 

69,205

 

 

 

69,020

 

Accrued expenses and other liabilities

 

 

54,454

 

 

 

53,768

 

 

 

52,683

 

Total liabilities

 

 

2,887,242

 

 

 

2,949,730

 

 

 

3,010,011

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

Common stock, no par value

 

 

118,401

 

 

 

118,247

 

 

 

115,875

 

Retained earnings

 

 

151,350

 

 

 

149,169

 

 

 

127,566

 

Accumulated other comprehensive (loss)

 

 

(1,719

)

 

 

(1,664

)

 

 

(1,134

)

Total shareholders’ equity

 

 

268,032

 

 

 

265,752

 

 

 

242,307

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

3,155,274

 

 

$

3,215,482

 

 

$

3,252,318

 

 

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

(Dollars in thousands, except share data)

 

 

For the Quarter Ended

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

Interest and dividend income

 

 

 

 

 

Interest and fees on loans

$

43,325

 

 

$

44,122

 

 

$

39,723

 

Interest and dividends on securities

 

1,130

 

 

 

1,108

 

 

 

1,000

 

Interest on cash and cash equivalents

 

3,826

 

 

 

4,164

 

 

 

3,568

 

Total interest and dividend income

 

48,281

 

 

 

49,394

 

 

 

44,291

 

Interest expense

 

 

 

 

 

Interest expense on deposits

 

25,362

 

 

 

25,307

 

 

 

17,033

 

Interest expense on borrowings

 

1,772

 

 

 

1,842

 

 

 

1,717

 

Total interest expense

 

27,134

 

 

 

27,149

 

 

 

18,750

 

 

 

 

 

 

 

Net interest income

 

21,147

 

 

 

22,245

 

 

 

25,541

 

Provision (credit) for credit losses

 

3,683

 

 

 

(960

)

 

 

826

Net interest income after provision for credit losses

 

17,464

 

 

 

23,205

 

 

 

24,715

 

Noninterest income

 

 

 

 

 

Bank owned life insurance

 

329

 

 

 

316

 

 

 

281

 

Service charges and fees

 

304

 

 

 

688

 

 

 

286

 

Gains and fees from sales of loans

 

321

 

 

 

79

 

 

 

931

 

Other

 

(39

)

 

 

46

 

 

 

28

 

Total noninterest income

 

915

 

 

 

1,129

 

 

 

1,526

 

Noninterest expense

 

 

 

 

 

Salaries and employee benefits

 

6,291

 

 

 

6,088

 

 

 

6,081

 

Occupancy and equipment

 

2,322

 

 

 

2,231

 

 

 

2,084

 

Professional services

 

1,065

 

 

 

1,033

 

 

 

1,322

 

Data processing

 

740

 

 

 

747

 

 

 

671

 

Director fees

 

900

 

 

 

605

 

 

 

392

 

FDIC insurance

 

930

 

 

 

1,026

 

 

 

1,062

 

Marketing

 

114

 

 

 

139

 

 

 

151

 

Other

 

935

 

 

 

995

 

 

 

928

 

Total noninterest expense

 

13,297

 

 

 

12,864

 

 

 

12,691

 

Income before income tax expense

 

5,082

 

 

 

11,470

 

 

 

13,550

 

Income tax expense

 

1,319

 

 

 

2,946

 

 

 

3,171

 

Net income

$

3,763

 

 

$

8,524

 

 

$

10,379

 

Earnings Per Common Share:

 

 

 

 

 

Basic

$

0.48

 

 

$

1.09

 

 

$

1.34

 

Diluted

$

0.48

 

 

$

1.09

 

 

$

1.33

 

Weighted Average Common Shares Outstanding:

 

 

 

 

 

Basic

 

7,663,521

 

 

 

7,603,938

 

 

 

7,554,689

 

Diluted

 

7,687,679

 

 

 

7,650,451

 

 

 

7,616,671

 

Dividends per common share

$

0.20

 

 

$

0.20

 

 

$

0.20

 

 

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)

 

 

For the Quarter Ended

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

Performance ratios:

 

 

 

 

 

Return on average assets

0.47

%

 

1.03

%

 

1.30

%

Return on average shareholders' equity

5.59

%

 

12.82

%

 

17.48

%

Return on average tangible common equity

5.65

%

 

12.95

%

 

17.67

%

Net interest margin

2.71

%

 

2.81

%

 

3.24

%

Efficiency ratio(1)

60.3

%

 

55.0

%

 

46.9

%

Net loan charge-offs as a % of average loans

0.11

%

 

0.01

%

 

0.02

%

Dividend payout ratio(2)

41.67

%

 

18.35

%

 

15.04

%

(1)

 

Efficiency ratio is defined as noninterest expense, less other real estate owned expenses and amortization of intangible assets, divided by our operating revenue, which is equal to net interest income plus noninterest income excluding gains and losses on sales of securities and gains and losses on other real estate owned. In our judgment, the adjustments made to operating revenue allow investors and analysts to better assess our operating expenses in relation to our core operating revenue by removing the volatility that is associated with certain one-time items and other discrete items that are unrelated to our core business.

(2)

 

The dividend payout ratio is calculated by dividing dividends per share by earnings per share.

 

As of

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

Capital ratios:

 

 

 

 

 

Total Common Equity Tier 1 Capital to Risk-Weighted Assets(1)

 

11.60

%

 

 

11.30

%

 

 

10.00

%

Total Capital to Risk-Weighted Assets(1)

 

12.63

%

 

 

12.32

%

 

 

10.98

%

Tier I Capital to Risk-Weighted Assets(1)

 

11.60

%

 

 

11.30

%

 

 

10.00

%

Tier I Capital to Average Assets(1)

 

10.09

%

 

 

9.81

%

 

 

9.22

%

Tangible common equity to tangible assets

 

8.42

%

 

 

8.19

%

 

 

7.38

%

Fully diluted tangible book value per common share

$

33.57

 

 

$

33.39

 

 

$

30.56

 

(1)

 

Represents Bank ratios. Current period capital ratios are preliminary subject to finalization of the FDIC Call Report.

 

BANKWELL FINANCIAL GROUP, INC.

ASSET QUALITY (unaudited)

(Dollars in thousands)

 

 

For the Quarter Ended

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

ACL-Loans:

 

 

 

 

 

Balance at beginning of period

$

27,946

 

 

$

29,284

 

 

$

22,431

 

Day 1 CECL Adjustment on January 1, 2023

 

 

 

 

 

 

 

5,079

 

Beginning balance January 1, 2023

 

27,946

 

 

 

29,284

 

 

 

27,510

 

Charge-offs:

 

 

 

 

 

Residential real estate

 

(132

)

 

 

 

 

 

 

Commercial real estate

 

(3,306

)

 

 

(824

)

 

 

 

Commercial business

 

(197

)

 

 

 

 

 

(440

)

Consumer

 

(49

)

 

 

(15

)

 

 

(12

)

Total charge-offs

 

(3,684

)

 

 

(839

)

 

 

(452

)

Recoveries:

 

 

 

 

 

Commercial real estate

 

 

 

 

 

 

 

 

Commercial business

 

27

 

 

 

464

 

 

 

 

Consumer

 

4

 

 

 

3

 

 

 

6

 

Total recoveries

 

31

 

 

 

467

 

 

 

6

 

Net loan (charge-offs) recoveries

 

(3,653

)

 

 

(372

)

 

 

(446

)

Provision (credit) for credit losses - loans

 

3,698

 

 

 

(966

)

 

 

934

 

Balance at end of period

$

27,991

 

 

$

27,946

 

 

$

27,998

 

 

 

As of

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

Asset quality:

 

 

 

 

 

Nonaccrual loans

 

 

 

 

 

Residential real estate

$

1,237

 

 

$

1,386

 

 

$

1,443

 

Commercial real estate

 

19,083

 

 

 

23,009

 

 

 

1,912

 

Commercial business

 

16,841

 

 

 

15,430

 

 

 

1,528

 

Construction

 

9,382

 

 

 

9,382

 

 

 

9,382

 

Consumer

 

 

 

 

 

 

 

 

Total nonaccrual loans

 

46,543

 

 

 

49,207

 

 

 

14,265

 

Other real estate owned

 

 

 

 

 

 

 

 

Total nonperforming assets

$

46,543

 

 

$

49,207

 

 

$

14,265

 

 

 

 

 

 

 

Nonperforming loans as a % of total loans

 

1.74

%

 

 

1.81

%

 

 

0.52

%

Nonperforming assets as a % of total assets

 

1.48

%

 

 

1.53

%

 

 

0.44

%

ACL-loans as a % of total loans

 

1.04

%

 

 

1.03

%

 

 

1.01

%

ACL-loans as a % of nonperforming loans

 

60.14

%

 

 

56.79

%

 

 

196.27

%

Total past due loans to total loans

 

1.44

%

 

 

0.78

%

 

 

0.94

%

Total nonaccrual loans decreased $2.7 million to $46.5 million as of March 31, 2024 when compared to December 31, 2023. The reduction is primarily due to charge-offs taken during the quarter ended March 31, 2024.

Nonperforming assets as a percentage of total assets decreased to 1.48% at March 31, 2024 from 1.53% at December 31, 2023. The ACL-Loans at March 31, 2024 was $28.0 million, representing 1.04% of total loans.

BANKWELL FINANCIAL GROUP, INC.

LOAN & DEPOSIT PORTFOLIO (unaudited)

(Dollars in thousands)

 

Period End Loan Composition

March 31, 2024

 

December 31, 2023

 

Current QTD % Change

Residential Real Estate

$

49,098

 

 

$

50,931

 

 

(3.6

)%

Commercial Real Estate(1)

 

1,927,636

 

 

 

1,947,648

 

 

(1.0

)

Construction

 

151,967

 

 

 

183,414

 

 

(17.1

)

Total Real Estate Loans

 

2,128,701

 

 

 

2,181,993

 

 

(2.4

)

Commercial Business

 

508,912

 

 

 

500,569

 

 

1.7

 

Consumer

 

41,946

 

 

36,045

 

16.4

 

Total Loans

$

2,679,559

 

 

$

2,718,607

 

 

(1.4

)%

(1) Includes owner occupied commercial real estate.

Gross loans totaled $2.7 billion at March 31, 2024, a decrease of $39.0 million or 1.4% compared to December 31, 2023.

Period End Deposit Composition

March 31, 2024

 

December 31, 2023

 

Current QTD % Change

Noninterest bearing demand

$

376,248

 

 

$

346,172

 

 

8.7

%

NOW

 

95,227

 

 

 

90,829

 

 

4.8

 

Money Market

 

818,408

 

 

 

887,352

 

 

(7.8

)

Savings

 

92,188

 

 

 

97,331

 

 

(5.3

)

Time

 

1,291,451

 

 

1,315,073

 

(1.8

)

Total Deposits

$

2,673,522

 

 

$

2,736,757

 

 

(2.3

)%

Total deposits were $2.7 billion at March 31, 2024, a decrease of $63.2 million, or 2.3%, when compared to December 31, 2023. Brokered deposits have decreased $120.0 million, when compared to December 31, 2023.

BANKWELL FINANCIAL GROUP, INC.

NONINTEREST EXPENSE (unaudited)

(Dollars in thousands)

 

 

For the Quarter Ended

 

 

 

 

Noninterest expense

March 31, 2024

 

December 31, 2023

 

March 31, 2023

 

Mar 24 vs. Dec 23

% Change

 

Mar 24 vs. Mar 23

% Change

Salaries and employee benefits

$

6,291

 

 

$

6,088

 

 

$

6,081

 

 

3.3

%

 

3.5

%

Occupancy and equipment

 

2,322

 

 

 

2,231

 

 

 

2,084

 

 

4.1

 

 

11.4

 

Professional services

 

1,065

 

 

 

1,033

 

 

 

1,322

 

 

3.1

 

 

(19.4

)

Data processing

 

740

 

 

 

747

 

 

 

671

 

 

(0.9

)

 

10.3

 

Director fees

 

900

 

 

 

605

 

 

 

392

 

 

48.8

 

 

129.6

 

FDIC insurance

 

930

 

 

 

1,026

 

 

 

1,062

 

 

(9.4

)

 

(12.4

)

Marketing

 

114

 

 

 

139

 

 

 

151

 

 

(18.0

)

 

(24.5

)

Other

 

935

 

 

995

 

 

928

 

(6.0

)

 

0.8

 

Total noninterest expense

$

13,297

 

 

$

12,864

 

 

$

12,691

 

 

3.4

%

 

4.8

%

Noninterest expense increased by $0.6 million to $13.3 million for the quarter ended March 31, 2024 compared to the quarter ended March 31, 2023. The increase in noninterest expense was primarily driven by an increase in director fees related to timing of compensation and accelerated vestings in connection with the death of a director.

BANKWELL FINANCIAL GROUP, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited)

(Dollars in thousands, except share data)

 

 

As of

Computation of Tangible Common Equity to Tangible Assets

March 31, 2024

 

December 31, 2023

 

March 31, 2023

Total Equity

$

268,032

 

 

$

265,752

 

 

$

242,307

 

Less:

 

 

 

 

 

Goodwill

 

2,589

 

 

 

2,589

 

 

 

2,589

 

Other intangibles

 

 

 

 

 

 

 

 

Tangible Common Equity

$

265,443

 

 

$

263,163

 

 

$

239,718

 

 

 

 

 

 

 

Total Assets

$

3,155,274

 

 

$

3,215,482

 

 

$

3,252,318

 

Less:

 

 

 

 

 

Goodwill

 

2,589

 

 

 

2,589

 

 

 

2,589

 

Other intangibles

 

 

 

 

 

 

 

 

Tangible Assets

$

3,152,685

 

 

$

3,212,893

 

 

$

3,249,729

 

 

 

 

 

 

 

Tangible Common Equity to Tangible Assets

 

8.42

%

 

 

8.19

%

 

 

7.38

%

 

 

As of

Computation of Fully Diluted Tangible Book Value per Common Share

March 31,

2024

 

December 31, 2023

 

March 31,

2023

Total shareholders' equity

$

268,032

 

 

$

265,752

 

 

$

242,307

 

Less:

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

 

Common shareholders' equity

$

268,032

 

 

$

265,752

 

 

$

242,307

 

Less:

 

 

 

 

 

Goodwill

 

2,589

 

 

 

2,589

 

 

 

2,589

 

Other intangibles

 

 

 

 

 

 

 

 

Tangible common shareholders' equity

$

265,443

 

 

$

263,163

 

 

$

239,718

 

 

 

 

 

 

 

Common shares issued and outstanding

 

7,908,180

 

 

7,882,616

 

 

7,843,438

 

 

 

 

 

 

Fully Diluted Tangible Book Value per Common Share

$

33.57

 

 

$

33.39

 

 

$

30.56

 

 

 

For the Quarter Ended

Computation of PPNR

March 31, 2024

 

December 31, 2023

 

March 31, 2023

Income before income tax expense

$

5,082

 

 

$

11,470

 

 

$

13,550

 

Add:

 

 

 

 

 

Provision (credit) for credit losses

 

3,683

 

 

(960

)

 

 

826

PPNR

$

8,765

 

 

$

10,510

 

 

$

14,376

 

 

BANKWELL FINANCIAL GROUP, INC.

EARNINGS PER SHARE ("EPS") (unaudited)

(Dollars in thousands, except share data)

 

 

Three Months Ended

March 31,

 

 

2024

 

 

 

2023

 

 

(In thousands, except per share data)

Net income

$

3,763

 

 

$

10,379

 

Dividends to participating securities(1)

 

(40

)

 

 

(42

)

Undistributed earnings allocated to participating securities(1)

 

(66

)

 

 

(230

)

Net income for earnings per share calculation

$

3,657

 

 

$

10,107

 

 

 

 

 

Weighted average shares outstanding, basic

 

7,664

 

 

 

7,555

 

Effect of dilutive equity-based awards(2)

 

24

 

 

 

62

 

Weighted average shares outstanding, diluted

 

7,688

 

 

 

7,617

 

Net earnings per common share:

 

 

 

Basic earnings per common share

$

0.48

 

 

$

1.34

 

Diluted earnings per common share

$

0.48

 

 

$

1.33

 

(1)

 

Represents dividends paid and undistributed earnings allocated to unvested stock-based awards that contain non-forfeitable rights to dividends.

(2)

 

Represents the effect of the assumed exercise of stock options and the vesting of restricted shares, as applicable, utilizing the treasury stock method.

 

BANKWELL FINANCIAL GROUP, INC.

NONINTEREST INCOME (unaudited)

(Dollars in thousands)

 

 

For the Quarter Ended

 

 

 

 

Noninterest income

March 31,

2024

 

December 31,

2023

 

March 31,

2023

 

Mar 24 vs. Dec 23

% Change

 

Mar 24 vs. Mar 23

% Change

Bank owned life insurance

$

329

 

 

$

316

 

 

$

281

 

 

4.1

%

 

17.1

%

Service charges and fees

 

304

 

 

 

688

 

 

 

286

 

 

(55.8

)

 

6.3

 

Gains and fees from sales of loans

 

321

 

 

 

79

 

 

 

931

 

 

306.3

 

 

Unfavorable

Other

 

(39

)

 

 

46

 

 

28

 

Unfavorable

 

Unfavorable

Total noninterest income

$

915

 

 

$

1,129

 

 

$

1,526

 

 

(19.0

)%

 

(40.0

)%

Noninterest income decreased $0.6 million for the quarter ended March 31, 2024 compared to the quarter ended March 31, 2023. The decrease in noninterest income was driven by lower gains as a result of fewer SBA loan sales for the quarter ended March 31, 2024.

BANKWELL FINANCIAL GROUP, INC.

NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - QTD (unaudited)

(Dollars in thousands)

 

 

For the Quarter Ended

 

March 31, 2024

 

March 31, 2023

 

Average

Balance

 

Interest

 

Yield/

Rate (4)

 

Average

Balance

 

Interest

 

Yield/

Rate (4)

Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and Fed funds sold

$

292,662

 

$

3,826

 

5.26

%

 

$

315,566

 

$

3,568

 

4.59

%

Securities(1)

 

134,737

 

 

1,060

 

3.15

 

 

 

129,881

 

 

956

 

2.49

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

1,922,413

 

 

28,643

 

5.89

 

 

 

1,918,551

 

 

25,585

 

5.33

 

Residential real estate

 

50,213

 

 

718

 

5.72

 

 

 

59,444

 

 

643

 

4.33

 

Construction

 

161,047

 

 

2,973

 

7.30

 

 

 

166,254

 

 

2,825

 

6.80

 

Commercial business

 

517,102

 

 

10,284

 

7.87

 

 

 

542,399

 

 

10,421

 

7.68

 

Consumer

 

39,964

 

 

707

 

7.12

 

 

 

18,536

 

 

249

 

5.45

 

Total loans

 

2,690,739

 

 

43,325

 

6.37

 

 

 

2,705,184

 

 

39,723

 

5.87

 

Federal Home Loan Bank stock

 

5,702

 

 

121

 

8.51

 

 

 

5,271

 

 

94

 

7.27

 

Total earning assets

 

3,123,840

 

$

48,332

 

6.12

%

 

 

3,155,902

 

$

44,341

 

5.62

%

Other assets

 

90,905

 

 

 

 

 

 

84,063

 

 

 

 

Total assets

$

3,214,745

 

 

 

 

 

$

3,239,965

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

NOW

$

91,674

 

$

39

 

0.17

%

 

$

92,918

 

$

37

 

0.16

%

Money market

 

883,851

 

 

9,146

 

4.16

 

 

 

907,739

 

 

6,385

 

2.85

 

Savings

 

92,972

 

 

714

 

3.09

 

 

 

136,333

 

 

727

 

2.16

 

Time

 

1,317,069

 

 

15,463

 

4.72

 

 

 

1,252,564

 

 

9,883

 

3.20

 

Total interest bearing deposits

 

2,385,566

 

 

25,362

 

4.28

 

 

 

2,389,554

 

 

17,032

 

2.89

 

Borrowed Money

 

159,226

 

 

1,772

 

4.48

 

 

 

161,202

 

 

1,717

 

4.26

 

Total interest bearing liabilities

 

2,544,792

 

$

27,134

 

4.29

%

 

 

2,550,756

 

$

18,749

 

2.98

%

Noninterest bearing deposits

 

337,020

 

 

 

 

 

 

403,920

 

 

 

 

Other liabilities

 

62,356

 

 

 

 

 

 

44,406

 

 

 

 

Total liabilities

 

2,944,168

 

 

 

 

 

 

2,999,082

 

 

 

 

Shareholders' equity

 

270,577

 

 

 

 

 

 

240,883

 

 

 

 

Total liabilities and shareholders' equity

$

3,214,745

 

 

 

 

 

$

3,239,965

 

 

 

 

Net interest income(2)

 

 

$

21,198

 

 

 

 

 

$

25,592

 

 

Interest rate spread

 

 

 

 

1.83

%

 

 

 

 

 

2.64

%

Net interest margin(3)

 

 

 

 

2.71

%

 

 

 

 

 

3.24

%

(1)

 

Average balances and yields for securities are based on amortized cost.

(2)

 

The adjustment for securities and loans taxable equivalency amounted to $51 thousand and $50 thousand for the quarters ended March 31, 2024 and 2023, respectively.

(3)

 

Annualized net interest income as a percentage of earning assets.

(4)

 

Yields are calculated using the contractual day count convention for each respective product type.

 

Bankwell Financial Group Christopher R. Gruseke, President and Chief Executive Officer or Courtney E. Sacchetti, Executive Vice President and Chief Financial Officer (203) 652-0166

Source: Bankwell Financial Group, Inc

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