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,
|
|
December 31,
|
|
March 31,
|
||||||
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,
|
|
December 31,
|
|
March 31,
|
||||||
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,
|
|
December 31,
|
|
March 31,
|
|||
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,
|
|
December 31,
|
|
March 31,
|
||||||
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,
|
|
December 31,
|
|
March 31,
|
||||||
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,
|
|
December 31,
|
|
March 31,
|
||||||
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,
|
|
December 31,
|
|
Current QTD
|
|||||
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,
|
|
December 31,
|
|
Current QTD
|
|||||
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,
|
|
December 31,
|
|
March 31,
|
|
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,
|
|
December 31,
|
|
March 31,
|
||||||
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,
|
|
December 31,
|
|
March 31,
|
||||||
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. |
