NEW CANAAN, Conn.--(BUSINESS WIRE)--Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $9.8 million, or $1.25 per share for the third quarter of 2023, versus $9.2 million, or $1.18 per share, for the same period in 2022.
The Company's Board of Directors declared a $0.20 per share cash dividend, payable November 20, 2023 to shareholders of record on November 10, 2023.
We recommend reading this earnings release in conjunction with the Third Quarter 2023 Investor Presentation, located at http://investor.mybankwell.com/Presentations and included as an exhibit to our October 25, 2023 Current Report on Form 8-K.
Notes Bankwell Financial Group President and CEO, Christopher R. Gruseke:
"We continue to generate quality returns for our shareholders in a complex interest rate environment. Despite the compression of our Net Interest Margin during the current tightening cycle, our team has delivered a 1.16% Return on Average Assets and a 15.16% Return on Average Equity thus far this year. Our commitment to rigorous expense management lays a solid foundation for our financial success. Non-Interest Expense as a percentage Average Assets stands at 1.54% year-to date, putting Bankwell well ahead of industry peers on this key metric. I applaud the efforts and hard work of our team who enable the Company to perform at this level of efficiency."
Third Quarter 2023 Highlights:
- Total gross loans were $2.8 billion, growing $94.7 million, or 3.5%, compared to December 31, 2022.
- Deposits were $2.8 billion, decreasing $32.2 million, or 1.1%, compared to December 31, 2022.
- Brokered deposits decreased $75.3 million, when compared to December 31, 2022.
- FDIC-insured deposits totaled $2.0 billion and represent 71.2% of total deposits as of September 30, 2023.
- As of September 30, 2023, the Bank has $1.7 billion immediately available liquidity, more than two times coverage of uninsured deposits.
- Average yield on 2023 funded loans was 7.23% as of September 30, 2023.
- Return on average assets was 1.19% for the quarter ended September 30, 2023.
- Return on average shareholders' equity was 15.19% for the quarter ended September 30, 2023.
- The net interest margin was 2.85% for the quarter ended September 30, 2023.
- Noninterest expense to average assets was 1.48% for the quarter ended September 30, 2023.
- Investment securities totaled $115.8 million and represent 3.6% of total assets, with HTM securities totaling $15.9 million, or 0.5% of total assets.
- Allowance for credit losses (ACL)-Loans to total loans was 1.06% as of September 30, 2023.
Earnings and Performance
Revenues (net interest income plus noninterest income) for the quarter ended September 30, 2023 were $23.5 million, versus $25.0 million for the quarter ended September 30, 2022. Revenues for the nine months ended September 30, 2023 were $75.9 million, versus $70.4 million for the nine months ended September 30, 2022. The decrease in revenues for the quarter was primarily attributable to an increase in interest expense partially offset by an increase in interest on loans due to higher overall loan yields1. The increase in revenues for the nine months ended 2023 was primarily attributable to an increase in interest and fees on loans due to loan growth and higher overall loan yields1 partially offset by an increase in interest expense.
1 - The increase in overall loan yields was 100 bps and 114 bps for the quarter and nine months ended September 30, 2023, respectively. |
Net income for the quarter ended September 30, 2023 was $9.8 million, versus $9.2 million for the quarter ended September 30, 2022. Net income for the nine months ended September 30, 2023 was $28.1 million, versus $29.4 million for the nine months ended September 30, 2022. The increase in net income for the quarter ended 2023 was primarily due to the credit for credit losses, partially offset by an increase in noninterest expense, and the aforementioned decrease in revenues. The decrease in net income for nine months ended 2023 was due to an increase in noninterest expense partially offset by the aforementioned increase in revenues.
Basic and diluted earnings per share were $1.25 and $1.25, respectively, for the quarter ended September 30, 2023 compared to basic and diluted earnings per share of $1.19 and $1.18, respectively, for the quarter ended September 30, 2022. Basic and diluted earnings per share were $3.61 and $3.58, respectively, for the nine months ended September 30, 2023 compared to basic and diluted earnings per share of $3.80 and $3.75, respectively, for the nine months ended September 30, 2022.
The net interest margin (fully taxable equivalent basis) for the quarters ended September 30, 2023 and September 30, 2022 was 2.85% and 4.12%, respectively. The net interest margin (fully taxable equivalent basis) for the nine months ended September 30, 2023 and September 30, 2022 was 3.04% and 3.81%, respectively. The decrease in the net interest margin was due to an increase in funding costs partially offset by an increase in earning assets.
ACL-Loans
The ACL-Loans was $29.3 million as of September 30, 2023 compared to $30.7 million as of June 30, 2023, for a release of $1.4 million for the quarter ended September 30, 2023. The ACL-Loans as a percentage of total loans was 1.06% as of September 30, 2023 compared to 1.11% as of June 30, 2023. The reduction for the quarter was primarily due to a revision in the CECL methodology given further refinement of the Company's loan portfolio segmentation.
The ACL-Loans was $29.3 million as of September 30, 2023 compared to $22.4 million as of December 31, 2022, an increase of $6.9 million year to date, of which $5.1 million being the CECL transition adjustment to retained earnings. The ACL-Loans as a percentage of total loans was 1.06% as of September 30, 2023 compared to 0.84% as of December 31, 2022. The increase in the ACL-Loans provision for credit losses was primarily driven by loan growth and forward looking CECL macroeconomic factors.
Financial Condition
Assets totaled $3.2 billion at September 30, 2023, a decrease of $2.7 million or 0.1% compared to December 31, 2022. Gross loans totaled $2.8 billion at September 30, 2023, an increase of $94.7 million, or 3.5% compared to December 31, 2022. Deposits totaled $2.8 billion at September 30, 2023, a decrease of $32.2 million, or 1.1% compared to December 31, 2022.
Capital
Shareholders’ equity totaled $257.9 million as of September 30, 2023, an increase of $19.4 million compared to December 31, 2022, primarily a result of net income of $28.1 million for the nine months ended September 30, 2023. The increase was partially offset by the Day 1 CECL adoption of $4.9 million, dividends paid of $4.7 million, and a $1.3 million unfavorable impact to accumulated other comprehensive income. The unfavorable impact to accumulated other comprehensive income was driven by fair value marks on the Company's available for sale investment securities portfolio of $1.4 million partially offset by fair value marks related to hedge positions involving interest rate swaps of $0.1 million. The Company's interest rate swaps are used to hedge interest rate risk.
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, 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) |
|||||||||||||||||||
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks |
$ |
256,973 |
|
|
$ |
207,345 |
|
|
$ |
249,812 |
|
|
$ |
344,925 |
|
|
$ |
212,175 |
|
Federal funds sold |
|
1,122 |
|
|
|
54,706 |
|
|
|
27,370 |
|
|
|
10,754 |
|
|
|
10,947 |
|
Cash and cash equivalents |
|
258,095 |
|
|
|
262,051 |
|
|
|
277,182 |
|
|
|
355,679 |
|
|
|
223,122 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities |
|
|
|
|
|
|
|
|
|
||||||||||
Marketable equity securities, at fair value |
|
1,975 |
|
|
|
2,017 |
|
|
|
2,028 |
|
|
|
1,988 |
|
|
|
1,973 |
|
Available for sale investment securities, at fair value |
|
97,907 |
|
|
|
99,938 |
|
|
|
103,171 |
|
|
|
103,663 |
|
|
|
95,095 |
|
Held to maturity investment securities, at amortized cost |
|
15,885 |
|
|
|
15,884 |
|
|
|
15,931 |
|
|
|
15,983 |
|
|
|
16,027 |
|
Total investment securities |
|
115,767 |
|
|
|
117,839 |
|
|
|
121,130 |
|
|
|
121,634 |
|
|
|
113,095 |
|
Loans receivable (net of ACL-Loans of $29,284, $30,694, $27,998, $22,431, and $18,167 at September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, respectively) |
|
2,735,242 |
|
|
|
2,736,607 |
|
|
|
2,724,514 |
|
|
|
2,646,384 |
|
|
|
2,263,432 |
|
Accrued interest receivable |
|
15,648 |
|
|
|
14,208 |
|
|
|
14,261 |
|
|
|
13,070 |
|
|
|
9,552 |
|
Federal Home Loan Bank stock, at cost |
|
5,696 |
|
|
|
5,696 |
|
|
|
5,234 |
|
|
|
5,216 |
|
|
|
5,039 |
|
Premises and equipment, net |
|
26,899 |
|
|
|
27,658 |
|
|
|
27,619 |
|
|
|
27,199 |
|
|
|
27,510 |
|
Bank-owned life insurance |
|
51,119 |
|
|
|
50,816 |
|
|
|
50,524 |
|
|
|
50,243 |
|
|
|
49,970 |
|
Goodwill |
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
Deferred income taxes, net |
|
9,395 |
|
|
|
10,014 |
|
|
|
8,692 |
|
|
|
7,422 |
|
|
|
5,952 |
|
Other assets |
|
29,326 |
|
|
|
25,229 |
|
|
|
20,573 |
|
|
|
23,013 |
|
|
|
22,734 |
|
Total assets |
$ |
3,249,776 |
|
|
$ |
3,252,707 |
|
|
$ |
3,252,318 |
|
|
$ |
3,252,449 |
|
|
$ |
2,722,995 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities |
|
|
|
|
|
|
|
|
|
||||||||||
Deposits |
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest bearing deposits |
$ |
345,433 |
|
|
$ |
367,635 |
|
|
$ |
377,667 |
|
|
$ |
404,559 |
|
|
$ |
380,365 |
|
Interest bearing deposits |
|
2,423,193 |
|
|
|
2,421,228 |
|
|
|
2,420,641 |
|
|
|
2,396,259 |
|
|
|
1,906,337 |
|
Total deposits |
|
2,768,626 |
|
|
|
2,788,863 |
|
|
|
2,798,308 |
|
|
|
2,800,818 |
|
|
|
2,286,702 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Advances from the Federal Home Loan Bank |
|
90,000 |
|
|
|
90,000 |
|
|
|
90,000 |
|
|
|
90,000 |
|
|
|
90,000 |
|
Subordinated debentures |
|
69,143 |
|
|
|
69,082 |
|
|
|
69,020 |
|
|
|
68,959 |
|
|
|
68,897 |
|
Accrued expenses and other liabilities |
|
64,145 |
|
|
|
55,949 |
|
|
|
52,683 |
|
|
|
54,203 |
|
|
|
45,896 |
|
Total liabilities |
|
2,991,914 |
|
|
|
3,003,894 |
|
|
|
3,010,011 |
|
|
|
3,013,980 |
|
|
|
2,491,495 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders’ equity |
|
|
|
|
|
|
|
|
|
||||||||||
Common stock, no par value |
|
117,181 |
|
|
|
116,541 |
|
|
|
115,875 |
|
|
|
115,018 |
|
|
|
114,548 |
|
Retained earnings |
|
142,205 |
|
|
|
133,988 |
|
|
|
127,566 |
|
|
|
123,640 |
|
|
|
117,152 |
|
Accumulated other comprehensive (loss) |
|
(1,524 |
) |
|
|
(1,716 |
) |
|
|
(1,134 |
) |
|
|
(189 |
) |
|
|
(200 |
) |
Total shareholders’ equity |
|
257,862 |
|
|
|
248,813 |
|
|
|
242,307 |
|
|
|
238,469 |
|
|
|
231,500 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total liabilities and shareholders’ equity |
$ |
3,249,776 |
|
|
$ |
3,252,707 |
|
|
$ |
3,252,318 |
|
|
$ |
3,252,449 |
|
|
$ |
2,722,995 |
|
BANKWELL FINANCIAL GROUP, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited) (Dollars in thousands, except share data) |
||||||||||||||||||||||||
|
For the Quarter Ended |
For the Nine Months Ended |
||||||||||||||||||||||
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|||||||||||
Interest and dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest and fees on loans |
$ |
43,854 |
|
|
$ |
42,482 |
|
$ |
39,723 |
|
$ |
36,545 |
|
|
$ |
28,128 |
|
|
$ |
126,059 |
|
$ |
74,697 |
|
Interest and dividends on securities |
|
1,016 |
|
|
|
1,002 |
|
|
1,000 |
|
|
898 |
|
|
|
811 |
|
|
|
3,018 |
|
|
2,305 |
|
Interest on cash and cash equivalents |
|
3,393 |
|
|
|
3,022 |
|
|
3,568 |
|
|
2,150 |
|
|
|
747 |
|
|
|
9,983 |
|
|
1,350 |
|
Total interest and dividend income |
|
48,263 |
|
|
|
46,506 |
|
|
44,291 |
|
|
39,593 |
|
|
|
29,686 |
|
|
|
139,060 |
|
|
78,352 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest expense on deposits |
|
23,789 |
|
|
|
20,777 |
|
|
17,033 |
|
|
11,083 |
|
|
|
4,092 |
|
|
|
61,599 |
|
|
8,281 |
|
Interest expense on borrowings |
|
1,783 |
|
|
|
1,738 |
|
|
1,717 |
|
|
1,701 |
|
|
|
993 |
|
|
|
5,238 |
|
|
2,137 |
|
Total interest expense |
|
25,572 |
|
|
|
22,515 |
|
|
18,750 |
|
|
12,784 |
|
|
|
5,085 |
|
|
|
66,837 |
|
|
10,418 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net interest income |
|
22,691 |
|
|
|
23,991 |
|
|
25,541 |
|
|
26,809 |
|
|
|
24,601 |
|
|
|
72,223 |
|
|
67,934 |
|
(Credit) provision for credit losses |
|
(1,579 |
) |
|
|
2,579 |
|
|
826 |
|
|
4,272 |
|
|
|
2,381 |
|
|
|
1,826 |
|
|
1,165 |
|
Net interest income after provision for credit losses |
|
24,270 |
|
|
|
21,412 |
|
|
24,715 |
|
|
22,537 |
|
|
|
22,220 |
|
|
|
70,397 |
|
|
66,769 |
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Bank owned life insurance |
|
303 |
|
|
|
292 |
|
|
281 |
|
|
273 |
|
|
|
271 |
|
|
|
876 |
|
|
796 |
|
Service charges and fees |
|
294 |
|
|
|
361 |
|
|
286 |
|
|
343 |
|
|
|
240 |
|
|
|
941 |
|
|
729 |
|
Gains and fees from sales of loans |
|
237 |
|
|
|
725 |
|
|
931 |
|
|
12 |
|
|
|
(15 |
) |
|
|
1,893 |
|
|
1,224 |
|
Other |
|
(48 |
) |
|
|
23 |
|
|
28 |
|
|
(100 |
) |
|
|
(94 |
) |
|
|
3 |
|
|
(237 |
) |
Total noninterest income |
|
786 |
|
|
|
1,401 |
|
|
1,526 |
|
|
528 |
|
|
|
402 |
|
|
|
3,713 |
|
|
2,512 |
|
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Salaries and employee benefits |
|
6,036 |
|
|
|
6,390 |
|
|
6,081 |
|
|
5,988 |
|
|
|
5,876 |
|
|
|
18,507 |
|
|
16,249 |
|
Occupancy and equipment |
|
2,146 |
|
|
|
2,204 |
|
|
2,084 |
|
|
1,919 |
|
|
|
2,035 |
|
|
|
6,434 |
|
|
6,378 |
|
Professional services |
|
491 |
|
|
|
692 |
|
|
1,322 |
|
|
912 |
|
|
|
994 |
|
|
|
2,505 |
|
|
2,975 |
|
Data processing |
|
741 |
|
|
|
729 |
|
|
671 |
|
|
663 |
|
|
|
626 |
|
|
|
2,141 |
|
|
1,969 |
|
Director fees |
|
362 |
|
|
|
453 |
|
|
392 |
|
|
378 |
|
|
|
325 |
|
|
|
1,207 |
|
|
1,016 |
|
FDIC insurance |
|
1,026 |
|
|
|
1,050 |
|
|
1,062 |
|
|
898 |
|
|
|
255 |
|
|
|
3,138 |
|
|
740 |
|
Marketing |
|
184 |
|
|
|
177 |
|
|
151 |
|
|
112 |
|
|
|
102 |
|
|
|
512 |
|
|
254 |
|
Other |
|
1,219 |
|
|
|
946 |
|
|
928 |
|
|
1,601 |
|
|
|
818 |
|
|
|
3,093 |
|
|
2,311 |
|
Total noninterest expense |
|
12,205 |
|
|
|
12,641 |
|
|
12,691 |
|
|
12,471 |
|
|
|
11,031 |
|
|
|
37,537 |
|
|
31,892 |
|
Income before income tax expense |
|
12,851 |
|
|
|
10,172 |
|
|
13,550 |
|
|
10,594 |
|
|
|
11,591 |
|
|
|
36,573 |
|
|
37,389 |
|
Income tax expense |
|
3,074 |
|
|
|
2,189 |
|
|
3,171 |
|
|
2,573 |
|
|
|
2,417 |
|
|
|
8,434 |
|
|
7,981 |
|
Net income |
$ |
9,777 |
|
|
$ |
7,983 |
|
$ |
10,379 |
|
$ |
8,021 |
|
|
$ |
9,174 |
|
|
$ |
28,139 |
|
$ |
29,408 |
|
Earnings Per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Basic |
$ |
1.25 |
|
|
$ |
1.02 |
|
$ |
1.34 |
|
$ |
1.04 |
|
|
$ |
1.19 |
|
|
$ |
3.61 |
|
$ |
3.80 |
|
Diluted |
$ |
1.25 |
|
|
$ |
1.02 |
|
$ |
1.33 |
|
$ |
1.04 |
|
|
$ |
1.18 |
|
|
$ |
3.58 |
|
$ |
3.75 |
|
Weighted Average Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Basic |
|
7,598,230 |
|
|
|
7,593,417 |
|
|
7,554,689 |
|
|
7,507,540 |
|
|
|
7,553,718 |
|
|
|
7,582,272 |
|
|
7,582,175 |
|
Diluted |
|
7,633,934 |
|
|
|
7,601,562 |
|
|
7,616,671 |
|
|
7,563,116 |
|
|
|
7,612,421 |
|
|
|
7,646,837 |
|
|
7,664,123 |
|
Dividends per common share |
$ |
0.20 |
|
|
$ |
0.20 |
|
$ |
0.20 |
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.60 |
|
$ |
0.60 |
|
BANKWELL FINANCIAL GROUP, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) |
||||||||||||||||||||
|
For the Quarter Ended |
|
For the Nine Months Ended |
|||||||||||||||||
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30,
|
|
September 30, 2023 |
|
September 30, 2022 |
|||||||
Performance ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Return on average assets |
1.19 |
% |
|
0.99 |
% |
|
1.30 |
% |
|
1.07 |
% |
|
1.47 |
% |
|
1.16 |
% |
|
1.59 |
% |
Return on average shareholders' equity |
15.19 |
% |
|
12.91 |
% |
|
17.48 |
% |
|
13.38 |
% |
|
15.73 |
% |
|
15.16 |
% |
|
17.94 |
% |
Return on average tangible common equity |
15.35 |
% |
|
13.05 |
% |
|
17.67 |
% |
|
13.52 |
% |
|
15.91 |
% |
|
15.32 |
% |
|
18.16 |
% |
Net interest margin |
2.85 |
% |
|
3.07 |
% |
|
3.24 |
% |
|
3.70 |
% |
|
4.12 |
% |
|
3.04 |
% |
|
3.81 |
% |
Efficiency ratio(1) |
52.0 |
% |
|
49.8 |
% |
|
46.9 |
% |
|
45.6 |
% |
|
44.1 |
% |
|
49.4 |
% |
|
45.3 |
% |
Net loan charge-offs as a % of average loans |
— |
% |
|
— |
% |
|
0.02 |
% |
|
— |
% |
|
— |
% |
|
0.01 |
% |
|
— |
% |
Dividend payout ratio(2) |
16.00 |
% |
|
19.61 |
% |
|
15.04 |
% |
|
19.23 |
% |
|
16.95 |
% |
|
16.76 |
% |
|
16.00 |
% |
(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 |
||||||||||||||||||
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
||||||||||
Capital ratios: |
|
|
|
|
|
|
|
|
|
||||||||||
Total Common Equity Tier 1 Capital to Risk-Weighted Assets(1) |
|
10.82 |
% |
|
|
10.34 |
% |
|
|
10.17 |
% |
|
|
10.28 |
% |
|
|
11.42 |
% |
Total Capital to Risk-Weighted Assets(1) |
|
11.86 |
% |
|
|
11.41 |
% |
|
|
11.16 |
% |
|
|
11.07 |
% |
|
|
12.16 |
% |
Tier I Capital to Risk-Weighted Assets(1) |
|
10.82 |
% |
|
|
10.34 |
% |
|
|
10.17 |
% |
|
|
10.28 |
% |
|
|
11.42 |
% |
Tier I Capital to Average Assets(1) |
|
9.60 |
% |
|
|
9.41 |
% |
|
|
9.22 |
% |
|
|
9.88 |
% |
|
|
11.31 |
% |
Tangible common equity to tangible assets |
|
7.86 |
% |
|
|
7.58 |
% |
|
|
7.38 |
% |
|
|
7.26 |
% |
|
|
8.41 |
% |
Fully diluted tangible book value per common share |
$ |
32.55 |
|
|
$ |
31.45 |
|
|
$ |
30.56 |
|
|
$ |
30.51 |
|
|
$ |
29.68 |
|
(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 |
||||||||||||||||||
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
||||||||||
ACL-Loans: |
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of period |
$ |
30,694 |
|
|
$ |
27,998 |
|
|
$ |
22,431 |
|
|
$ |
18,167 |
|
|
$ |
15,773 |
|
Day 1 CECL Adjustment on January 1, 2023 |
|
— |
|
|
|
— |
|
|
|
5,079 |
|
|
|
— |
|
|
|
— |
|
Beginning balance January 1, 2023 |
|
30,694 |
|
|
|
27,998 |
|
|
|
27,510 |
|
|
|
18,167 |
|
|
|
— |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
||||||||||
Commercial business |
|
— |
|
|
|
— |
|
|
|
(440 |
) |
|
|
— |
|
|
|
— |
|
Consumer |
|
(31 |
) |
|
|
(25 |
) |
|
|
(12 |
) |
|
|
(11 |
) |
|
|
(8 |
) |
Total charge-offs |
|
(31 |
) |
|
|
(25 |
) |
|
|
(452 |
) |
|
|
(11 |
) |
|
|
(8 |
) |
Recoveries: |
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial business |
|
35 |
|
|
|
32 |
|
|
|
— |
|
|
|
— |
|
|
|
21 |
|
Consumer |
|
19 |
|
|
|
10 |
|
|
|
6 |
|
|
|
3 |
|
|
|
— |
|
Total recoveries |
|
54 |
|
|
|
42 |
|
|
|
6 |
|
|
|
3 |
|
|
|
21 |
|
Net loan recoveries (charge-offs) |
|
23 |
|
|
|
17 |
|
|
|
(446 |
) |
|
|
(8 |
) |
|
|
13 |
|
(Credit) provision for credit losses - loans |
|
(1,433 |
) |
|
|
2,679 |
|
|
|
934 |
|
|
|
4,272 |
|
|
|
2,381 |
|
Balance at end of period |
$ |
29,284 |
|
|
$ |
30,694 |
|
|
$ |
27,998 |
|
|
$ |
22,431 |
|
|
$ |
18,167 |
|
|
As of |
||||||||||||||||||
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
||||||||||
Asset quality: |
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans |
|
|
|
|
|
|
|
|
|
||||||||||
Residential real estate |
$ |
1,408 |
|
|
$ |
1,429 |
|
|
$ |
1,443 |
|
|
$ |
2,152 |
|
|
$ |
2,137 |
|
Commercial real estate |
|
1,898 |
|
|
|
1,905 |
|
|
|
1,912 |
|
|
|
2,781 |
|
|
|
2,894 |
|
Commercial business |
|
7,352 |
|
|
|
2,815 |
|
|
|
1,528 |
|
|
|
2,126 |
|
|
|
2,380 |
|
Construction |
|
9,382 |
|
|
|
9,382 |
|
|
|
9,382 |
|
|
|
9,382 |
|
|
|
9,382 |
|
Consumer |
|
7,917 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonaccrual loans |
|
27,957 |
|
|
|
15,531 |
|
|
|
14,265 |
|
|
|
16,441 |
|
|
|
16,793 |
|
Other real estate owned |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonperforming assets |
$ |
27,957 |
|
|
$ |
15,531 |
|
|
$ |
14,265 |
|
|
$ |
16,441 |
|
|
$ |
16,793 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming loans as a % of total loans |
|
1.01 |
% |
|
|
0.56 |
% |
|
|
0.52 |
% |
|
|
0.61 |
% |
|
|
0.73 |
% |
Nonperforming assets as a % of total assets |
|
0.86 |
% |
|
|
0.48 |
% |
|
|
0.44 |
% |
|
|
0.51 |
% |
|
|
0.62 |
% |
ACL-loans as a % of total loans |
|
1.06 |
% |
|
|
1.11 |
% |
|
|
1.01 |
% |
|
|
0.84 |
% |
|
|
0.79 |
% |
ACL-loans as a % of nonperforming loans |
|
104.75 |
% |
|
|
197.63 |
% |
|
|
196.27 |
% |
|
|
136.43 |
% |
|
|
108.18 |
% |
Total past due loans to total loans |
|
1.44 |
% |
|
|
1.30 |
% |
|
|
0.94 |
% |
|
|
0.60 |
% |
|
|
0.78 |
% |
Total nonaccrual loans increased $11.5 million to $28.0 million as of September 30, 2023 when compared to December 31, 2022. Nonaccrual loans increased primarily due to three distinct loans:
- One Consumer (insurance premium) loan of $7.9 million. As of October 4, 2023, the loan balance has been reduced to $3.9 million. The Bank holds collateral for the remaining balance, worth approximately two times the outstanding amount.
- Two Commercial business loans totaling $5.5 million, of which approximately 82% is guaranteed by the U.S. Government (SBA).
Nonperforming assets as a percentage of total assets increased to 0.86% at September 30, 2023 from 0.51% at December 31, 2022. The ACL-Loans at September 30, 2023 was $29.3 million, representing 1.06% of total loans.
BANKWELL FINANCIAL GROUP, INC. LOAN & DEPOSIT PORTFOLIO (unaudited) (Dollars in thousands) |
||||||||||||||
Period End Loan Composition |
September 30, 2023 |
|
June 30, 2023 |
|
December 31, 2022 |
|
Current QTD % Change |
|
YTD % Change |
|||||
Residential Real Estate |
$ |
52,908 |
|
$ |
54,631 |
|
$ |
60,588 |
|
(3.2 |
)% |
|
(12.7 |
)% |
Commercial Real Estate(1) |
|
1,955,992 |
|
|
1,930,972 |
|
|
1,921,252 |
|
1.3 |
|
|
1.8 |
|
Construction |
|
199,972 |
|
|
219,615 |
|
|
155,198 |
|
(8.9 |
) |
|
28.8 |
|
Total Real Estate Loans |
|
2,208,872 |
|
|
2,205,218 |
|
|
2,137,038 |
|
0.2 |
|
|
3.4 |
|
Commercial Business |
|
508,626 |
|
|
530,913 |
|
|
520,447 |
|
(4.2 |
) |
|
(2.3 |
) |
Consumer |
|
52,612 |
|
|
37,475 |
|
|
17,963 |
|
40.4 |
|
|
192.9 |
|
Total Loans |
$ |
2,770,110 |
|
$ |
2,773,606 |
|
$ |
2,675,448 |
|
(0.1 |
)% |
|
3.5 |
% |
(1) Includes owner occupied commercial real estate. |
||||||||||||||
Gross loans totaled $2.8 billion at September 30, 2023, an increase of $94.7 million or 3.5% compared to December 31, 2022.
Period End Deposit Composition |
September 30, 2023 |
|
June 30, 2023 |
|
December 31, 2022 |
|
Current QTD % Change |
|
YTD % Change |
|||||
Noninterest bearing demand |
$ |
345,433 |
|
$ |
367,635 |
|
$ |
404,559 |
|
(6.0 |
)% |
|
(14.6 |
)% |
NOW |
|
101,719 |
|
|
106,189 |
|
|
104,057 |
|
(4.2 |
) |
|
(2.2 |
) |
Money Market |
|
879,978 |
|
|
879,017 |
|
|
913,868 |
|
0.1 |
|
|
(3.7 |
) |
Savings |
|
102,207 |
|
|
108,625 |
|
|
151,944 |
|
(5.9 |
) |
|
(32.7 |
) |
Time |
|
1,339,289 |
|
|
1,327,397 |
|
|
1,226,390 |
|
0.9 |
|
|
9.2 |
|
Total Deposits |
$ |
2,768,626 |
|
$ |
2,788,863 |
|
$ |
2,800,818 |
|
(0.7 |
)% |
|
(1.1 |
)% |
Total deposits were $2.8 billion at September 30, 2023, a decrease of $32.2 million, or 1.1%, when compared to December 31, 2022. Brokered deposits have decreased $75.3 million, when compared to December 31, 2022.
BANKWELL FINANCIAL GROUP, INC. NONINTEREST EXPENSE (unaudited) (Dollars in thousands) |
||||||||||||||
|
For the Quarter Ended |
|
|
|
|
|||||||||
Noninterest expense |
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
Sep 23 vs. June 23 % Change |
|
Sep 23 vs. Sep 22 % Change |
|||||
Salaries and employee benefits |
$ |
6,036 |
|
$ |
6,390 |
|
$ |
5,876 |
|
(5.5 |
)% |
|
2.7 |
% |
Occupancy and equipment |
|
2,146 |
|
|
2,204 |
|
|
2,035 |
|
(2.6 |
) |
|
5.5 |
|
Professional services |
|
491 |
|
|
692 |
|
|
994 |
|
(29.0 |
) |
|
(50.6 |
) |
Data processing |
|
741 |
|
|
729 |
|
|
626 |
|
1.6 |
|
|
18.4 |
|
Director fees |
|
362 |
|
|
453 |
|
|
325 |
|
(20.1 |
) |
|
11.4 |
|
FDIC insurance |
|
1,026 |
|
|
1,050 |
|
|
255 |
|
(2.3 |
) |
|
302.4 |
|
Marketing |
|
184 |
|
|
177 |
|
|
102 |
|
4.0 |
|
|
80.4 |
|
Other |
|
1,219 |
|
|
946 |
|
|
818 |
|
28.9 |
|
|
49.0 |
|
Total noninterest expense |
$ |
12,205 |
|
$ |
12,641 |
|
$ |
11,031 |
|
(3.4 |
)% |
|
10.6 |
% |
|
For the Nine Months Ended |
|
|
|||||
Noninterest expense |
September 30, 2023 |
|
September 30, 2022 |
|
% Change |
|||
Salaries and employee benefits |
$ |
18,507 |
|
$ |
16,249 |
|
13.9 |
% |
Occupancy and equipment |
|
6,434 |
|
|
6,378 |
|
0.9 |
% |
Professional services |
|
2,505 |
|
|
2,975 |
|
(15.8 |
)% |
Data processing |
|
2,141 |
|
|
1,969 |
|
8.7 |
% |
Director fees |
|
1,207 |
|
|
1,016 |
|
18.8 |
% |
FDIC insurance |
|
3,138 |
|
|
740 |
|
324.1 |
% |
Marketing |
|
512 |
|
|
254 |
|
101.6 |
% |
Other |
|
3,093 |
|
|
2,311 |
|
33.8 |
% |
Total noninterest expense |
$ |
37,537 |
|
$ |
31,892 |
|
17.7 |
% |
Noninterest expense increased by $1.2 million to $12.2 million for the quarter ended September 30, 2023 compared to the quarter ended September 30, 2022. Noninterest expense increased by $5.6 million to $37.5 million for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022. The increase in noninterest expense was primarily driven by an increase in FDIC insurance expense and salaries and employee benefits expense.
FDIC insurance expense totaled $1.0 million for the quarter ended September 30, 2023, an increase of $0.8 million when compared to the same period in 2022. FDIC insurance expense totaled $3.1 million for the nine months ended September 30, 2023, an increase of $2.4 million when compared to the same period in 2022. The increase in FDIC insurance expense is attributed to balance sheet growth and composition, as well as an increase in FDIC insurance rates.
Salaries and employee benefits expense totaled $18.5 million for the nine months ended September 30, 2023, an increase of $2.3 million when compared to the same period in 2022. The increase in salaries and employee benefits expense was driven by an increase in average full time equivalent employees from 139 at September 30, 2023 compared to 131 for the same period in 2022. In addition, salaries and employee benefits expense increased due to one-time severance costs.
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 |
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
||||||||||
Total Equity |
$ |
257,862 |
|
|
$ |
248,813 |
|
|
$ |
242,307 |
|
|
$ |
238,469 |
|
|
$ |
231,500 |
|
Less: |
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill |
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
Other intangibles |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Tangible Common Equity |
$ |
255,273 |
|
|
$ |
246,224 |
|
|
$ |
239,718 |
|
|
$ |
235,880 |
|
|
$ |
228,911 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Assets |
$ |
3,249,776 |
|
|
$ |
3,252,707 |
|
|
$ |
3,252,318 |
|
|
$ |
3,252,449 |
|
|
$ |
2,722,995 |
|
Less: |
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill |
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
Other intangibles |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Tangible Assets |
$ |
3,247,187 |
|
|
$ |
3,250,118 |
|
|
$ |
3,249,729 |
|
|
$ |
3,249,860 |
|
|
$ |
2,720,406 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible Common Equity to Tangible Assets |
|
7.86 |
% |
|
|
7.58 |
% |
|
|
7.38 |
% |
|
|
7.26 |
% |
|
|
8.41 |
% |
|
As of |
|||||||||||||
Computation of Fully Diluted Tangible Book Value per Common Share |
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|||||
Total shareholders' equity |
$ |
257,862 |
|
$ |
248,813 |
|
$ |
242,307 |
|
$ |
238,469 |
|
$ |
231,500 |
Less: |
|
|
|
|
|
|
|
|
|
|||||
Preferred stock |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Common shareholders' equity |
$ |
257,862 |
|
$ |
248,813 |
|
$ |
242,307 |
|
$ |
238,469 |
|
$ |
231,500 |
Less: |
|
|
|
|
|
|
|
|
|
|||||
Goodwill |
|
2,589 |
|
|
2,589 |
|
|
2,589 |
|
|
2,589 |
|
|
2,589 |
Other intangibles |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Tangible common shareholders' equity |
$ |
255,273 |
|
$ |
246,224 |
|
$ |
239,718 |
|
$ |
235,880 |
|
$ |
228,911 |
|
|
|
|
|
|
|
|
|
|
|||||
Common shares issued and outstanding |
|
7,841,616 |
|
|
7,829,950 |
|
|
7,843,438 |
|
|
7,730,699 |
|
|
7,711,843 |
|
|
|
|
|
|
|
|
|
|
|||||
Fully Diluted Tangible Book Value per Common Share |
$ |
32.55 |
|
$ |
31.45 |
|
$ |
30.56 |
|
$ |
30.51 |
|
$ |
29.68 |
BANKWELL FINANCIAL GROUP, INC. EARNINGS PER SHARE ("EPS") (unaudited) (Dollars in thousands, except share data) |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
(In thousands, except per share data) |
||||||||||||||
Net income |
$ |
9,777 |
|
|
$ |
9,174 |
|
|
$ |
28,140 |
|
|
$ |
29,408 |
|
Dividends to participating securities(1) |
|
(41 |
) |
|
|
(33 |
) |
|
|
(125 |
) |
|
|
(101 |
) |
Undistributed earnings allocated to participating securities(1) |
|
(209 |
) |
|
|
(159 |
) |
|
|
(613 |
) |
|
|
(529 |
) |
Net income for earnings per share calculation |
$ |
9,527 |
|
|
$ |
8,982 |
|
|
$ |
27,402 |
|
|
$ |
28,778 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding, basic |
|
7,598 |
|
|
|
7,554 |
|
|
|
7,582 |
|
|
|
7,582 |
|
Effect of dilutive equity-based awards(2) |
|
36 |
|
|
|
58 |
|
|
|
65 |
|
|
|
82 |
|
Weighted average shares outstanding, diluted |
|
7,634 |
|
|
|
7,612 |
|
|
|
7,647 |
|
|
|
7,664 |
|
Net earnings per common share: |
|
|
|
|
|
|
|
||||||||
Basic earnings per common share |
$ |
1.25 |
|
|
$ |
1.19 |
|
|
$ |
3.61 |
|
|
$ |
3.80 |
|
Diluted earnings per common share |
$ |
1.25 |
|
|
$ |
1.18 |
|
|
$ |
3.58 |
|
|
$ |
3.75 |
|
(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 |
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
Sep 23 vs. June 23 % Change |
|
Sep 23 vs. Sep 22 % Change |
|||||||
Bank owned life insurance |
$ |
303 |
|
|
$ |
292 |
|
$ |
271 |
|
|
3.8 |
% |
|
11.8 |
% |
Service charges and fees |
|
294 |
|
|
|
361 |
|
|
240 |
|
|
(18.6 |
) |
|
22.5 |
|
Gains and fees from sales of loans |
|
237 |
|
|
|
725 |
|
|
(15 |
) |
|
(67.3 |
) |
|
Favorable |
|
Other |
|
(48 |
) |
|
|
23 |
|
|
(94 |
) |
|
Unfavorable |
|
Favorable |
||
Total noninterest income |
$ |
786 |
|
|
$ |
1,401 |
|
$ |
402 |
|
|
(43.9 |
)% |
|
95.5 |
% |
|
For the Nine Months Ended |
|
|
||||||
Noninterest income |
September 30, 2023 |
|
September 30, 2022 |
|
% Change |
||||
Bank owned life insurance |
$ |
876 |
|
$ |
796 |
|
|
10.1 |
% |
Service charges and fees |
|
941 |
|
|
729 |
|
|
29.1 |
|
Gains and fees from sales of loans |
|
1,893 |
|
|
1,224 |
|
|
54.7 |
|
Other |
|
3 |
|
|
(237 |
) |
|
Favorable |
|
Total noninterest income |
$ |
3,713 |
|
$ |
2,512 |
|
|
47.8 |
% |
Noninterest income increased by $0.4 million to $0.8 million for the quarter ended September 30, 2023 compared to the quarter ended September 30, 2022. Noninterest income increased by $1.2 million to $3.7 million for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022. The increase in noninterest income was driven by an increase in gains on SBA loan sales and service charges and fees for the quarter and nine months ended 2023.
BANKWELL FINANCIAL GROUP, INC. NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - QTD (unaudited) (Dollars in thousands) |
|||||||||||||||||
|
For the Quarter Ended |
||||||||||||||||
|
September 30, 2023 |
|
September 30, 2022 |
||||||||||||||
|
Average Balance |
|
Interest |
|
Yield/ Rate (4) |
|
Average Balance |
|
Interest |
|
Yield/ Rate (4) |
||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and Fed funds sold |
$ |
265,115 |
|
$ |
3,393 |
|
5.08 |
% |
|
$ |
130,440 |
|
$ |
747 |
|
2.27 |
% |
Securities(1) |
|
127,229 |
|
|
953 |
|
3.00 |
|
|
|
120,092 |
|
|
829 |
|
2.76 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
1,943,725 |
|
|
28,140 |
|
5.67 |
|
|
|
1,512,381 |
|
|
18,830 |
|
4.87 |
|
Residential real estate |
|
53,966 |
|
|
671 |
|
4.97 |
|
|
|
62,915 |
|
|
586 |
|
3.72 |
|
Construction |
|
209,154 |
|
|
3,908 |
|
7.31 |
|
|
|
116,256 |
|
|
1,512 |
|
5.09 |
|
Commercial business |
|
539,185 |
|
|
10,394 |
|
7.54 |
|
|
|
431,917 |
|
|
7,058 |
|
6.39 |
|
Consumer |
|
44,020 |
|
|
740 |
|
6.66 |
|
|
|
12,145 |
|
|
142 |
|
4.65 |
|
Total loans |
|
2,790,050 |
|
|
43,853 |
|
6.15 |
|
|
|
2,135,614 |
|
|
28,128 |
|
5.15 |
|
Federal Home Loan Bank stock |
|
5,696 |
|
|
116 |
|
8.13 |
|
|
|
5,021 |
|
|
31 |
|
2.51 |
|
Total earning assets |
|
3,188,090 |
|
$ |
48,315 |
|
5.93 |
% |
|
|
2,391,167 |
|
$ |
29,735 |
|
4.87 |
% |
Other assets |
|
78,089 |
|
|
|
|
|
|
89,173 |
|
|
|
|
||||
Total assets |
$ |
3,266,179 |
|
|
|
|
|
$ |
2,480,340 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Liabilities and shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
NOW |
$ |
102,149 |
|
$ |
47 |
|
0.18 |
% |
|
$ |
119,593 |
|
$ |
52 |
|
0.17 |
% |
Money market |
|
922,036 |
|
|
9,064 |
|
3.90 |
|
|
|
828,541 |
|
|
2,346 |
|
1.12 |
|
Savings |
|
105,366 |
|
|
817 |
|
3.08 |
|
|
|
189,279 |
|
|
474 |
|
0.99 |
|
Time |
|
1,322,074 |
|
|
13,860 |
|
4.16 |
|
|
|
557,243 |
|
|
1,220 |
|
0.87 |
|
Total interest bearing deposits |
|
2,451,625 |
|
|
23,788 |
|
3.85 |
|
|
|
1,694,656 |
|
|
4,092 |
|
0.96 |
|
Borrowed Money |
|
159,103 |
|
|
1,784 |
|
4.39 |
|
|
|
135,221 |
|
|
993 |
|
2.87 |
|
Total interest bearing liabilities |
|
2,610,728 |
|
$ |
25,572 |
|
3.89 |
% |
|
|
1,829,877 |
|
$ |
5,085 |
|
1.10 |
% |
Noninterest bearing deposits |
|
345,988 |
|
|
|
|
|
|
383,048 |
|
|
|
|
||||
Other liabilities |
|
54,136 |
|
|
|
|
|
|
36,037 |
|
|
|
|
||||
Total liabilities |
|
3,010,852 |
|
|
|
|
|
|
2,248,962 |
|
|
|
|
||||
Shareholders' equity |
|
255,327 |
|
|
|
|
|
|
231,378 |
|
|
|
|
||||
Total liabilities and shareholders' equity |
$ |
3,266,179 |
|
|
|
|
|
$ |
2,480,340 |
|
|
|
|
||||
Net interest income(2) |
|
|
$ |
22,743 |
|
|
|
|
|
$ |
24,650 |
|
|
||||
Interest rate spread |
|
|
|
|
2.04 |
% |
|
|
|
|
|
3.77 |
% |
||||
Net interest margin(3) |
|
|
|
|
2.85 |
% |
|
|
|
|
|
4.12 |
% |
||||
(1) |
Average balances and yields for securities are based on amortized cost. |
(2) |
The adjustment for securities and loans taxable equivalency amounted to $52 thousand and $49 thousand for the quarters ended September 30, 2023 and 2022, respectively. |
(3) |
Annualized net interest income as a percentage of earning assets. |
(4) |
Yields are calculated using the contractual day count convention for each respective product type. |
BANKWELL FINANCIAL GROUP, INC. NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - YTD (unaudited) (Dollars in thousands) |
|||||||||||||||||
|
For the Nine Months Ended |
||||||||||||||||
|
September 30, 2023 |
|
September 30, 2022 |
||||||||||||||
|
Average Balance |
|
Interest |
|
Yield/ Rate (4) |
|
Average Balance |
|
Interest |
|
Yield/ Rate (4) |
||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and Fed funds sold |
$ |
281,033 |
|
$ |
9,983 |
|
4.75 |
% |
|
$ |
240,252 |
|
$ |
1,350 |
|
0.75 |
% |
Securities(1) |
|
128,554 |
|
|
2,864 |
|
2.97 |
% |
|
|
117,008 |
|
|
2,392 |
|
2.73 |
% |
Loans: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
1,932,549 |
|
|
79,958 |
|
5.46 |
% |
|
|
1,433,642 |
|
|
51,104 |
|
4.70 |
% |
Residential real estate |
|
56,798 |
|
|
1,957 |
|
4.59 |
% |
|
|
67,705 |
|
|
1,810 |
|
3.56 |
% |
Construction |
|
194,396 |
|
|
10,582 |
|
7.18 |
% |
|
|
108,249 |
|
|
4,482 |
|
5.46 |
% |
Commercial business |
|
546,329 |
|
|
32,073 |
|
7.74 |
% |
|
|
402,876 |
|
|
17,011 |
|
5.57 |
% |
Consumer |
|
30,571 |
|
|
1,489 |
|
6.51 |
% |
|
|
7,844 |
|
|
290 |
|
4.94 |
% |
Total loans |
|
2,760,643 |
|
|
126,059 |
|
6.02 |
% |
|
|
2,020,316 |
|
|
74,697 |
|
4.88 |
% |
Federal Home Loan Bank stock |
|
5,527 |
|
|
308 |
|
7.46 |
% |
|
|
3,715 |
|
|
61 |
|
2.19 |
% |
Total earning assets |
|
3,175,757 |
|
$ |
139,214 |
|
5.78 |
% |
|
|
2,381,291 |
|
$ |
78,500 |
|
4.35 |
% |
Other assets |
|
66,342 |
|
|
|
|
|
|
89,747 |
|
|
|
|
||||
Total assets |
$ |
3,242,099 |
|
|
|
|
|
$ |
2,471,038 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Liabilities and shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
NOW |
$ |
97,741 |
|
$ |
127 |
|
0.17 |
% |
|
$ |
122,792 |
|
$ |
158 |
|
0.17 |
% |
Money market |
|
910,840 |
|
|
23,532 |
|
3.45 |
% |
|
|
909,106 |
|
|
4,672 |
|
0.69 |
% |
Savings |
|
117,984 |
|
|
2,404 |
|
2.72 |
% |
|
|
194,013 |
|
|
678 |
|
0.47 |
% |
Time |
|
1,291,124 |
|
|
35,536 |
|
3.68 |
% |
|
|
487,792 |
|
|
2,773 |
|
0.76 |
% |
Total interest bearing deposits |
|
2,417,689 |
|
|
61,599 |
|
3.41 |
% |
|
|
1,713,703 |
|
|
8,281 |
|
0.65 |
% |
Borrowed Money |
|
161,166 |
|
|
5,238 |
|
4.29 |
% |
|
|
101,685 |
|
|
2,137 |
|
2.77 |
% |
Total interest bearing liabilities |
|
2,578,855 |
|
$ |
66,837 |
|
3.47 |
% |
|
|
1,815,388 |
|
$ |
10,418 |
|
0.77 |
% |
Noninterest bearing deposits |
|
374,943 |
|
|
|
|
|
|
398,728 |
|
|
|
|
||||
Other liabilities |
|
40,192 |
|
|
|
|
|
|
37,784 |
|
|
|
|
||||
Total liabilities |
|
2,993,990 |
|
|
|
|
|
|
2,251,900 |
|
|
|
|
||||
Shareholders' equity |
|
248,109 |
|
|
|
|
|
|
219,138 |
|
|
|
|
||||
Total liabilities and shareholders' equity |
$ |
3,242,099 |
|
|
|
|
|
$ |
2,471,038 |
|
|
|
|
||||
Net interest income(2) |
|
|
$ |
72,377 |
|
|
|
|
|
$ |
68,082 |
|
|
||||
Interest rate spread |
|
|
|
|
2.31 |
% |
|
|
|
|
|
3.58 |
% |
||||
Net interest margin(3) |
|
|
|
|
3.04 |
% |
|
|
|
|
|
3.81 |
% |
||||
(1) |
Average balances and yields for securities are based on amortized cost. |
(2) |
The adjustment for securities and loans taxable equivalency amounted to $154 thousand and $148 thousand for the nine months ended September 30, 2023 and 2022, 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. |
