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Bankwell Financial Group Reports Record Net Income for the Third Quarter; Declares Fourth Quarter Dividend; and Authorizes an Additional 200 Thousand Shares for Its Share Repurchase Program

Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported record GAAP net income of $6.9 million, or $0.87 per share, for the third quarter of 2021, versus $3.0 million, or $0.38 per share, for the same period in 2020.

The Company's Board of Directors declared an $0.18 per share cash dividend, payable November 22, 2021 to shareholders of record on November 12, 2021.

We recommend reading this earnings release in conjunction with the Third Quarter 2021 Investor Presentation, located at http://investor.mybankwell.com/Presentations and included as an exhibit to our October 27, 2021 Current Report on Form 8-K.

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

“On behalf of all of my colleagues at Bankwell, I am proud to announce our results for the most recent quarter. The Company achieved record levels in most performance categories of our business. Loan originations for the quarter totaled $200 million, with net loan growth of $92 million, excluding Paycheck Protection Program ("PPP") loans. Year to date, gross loan balances excluding PPP loans have grown by $232 million for an annualized growth rate of 19%. The Company’s ROAE and ROAA were 14.09% and 1.22%, respectively, for the quarter. Loan demand remains brisk; our healthy pipeline positions us for a strong finish to the year and lays the foundation for increased profitability in 2022.

“Confident in the strength of our balance sheet and the prospect of growing earnings, the Company’s Board of Directors today authorized the repurchase of an additional 200,000 shares of its common stock.”

Third Quarter 2021 Highlights:

  • Return on average assets was 1.22% and return on average equity was 14.09% for the quarter ended September 30, 2021.
  • The net interest margin improved to 3.39% for the quarter ended September 30, 2021.
  • The efficiency ratio improved to 54.1% for the quarter ended September 30, 2021.
  • Excluding Paycheck Protection Program ("PPP") loans, total gross loans were $1.8 billion, growing $232.1 million, or 14.6%, compared to December 31, 2020. On a quarterly basis loans grew $92.3 million, or 5.3% compared to June 30, 2021.
  • Gains from loan sales totaled $0.9 million and $2.3 million for the quarter and nine months ended September 30, 2021, respectively, compared to $27 thousand for the quarter and nine months ended September 30, 2020.
  • Total deposits were $1.9 billion compared to $1.8 billion at December 31, 2020.
  • Noninterest bearing deposits increased by $68.5 million, or 25.3% compared to December 31, 2020.
  • The percentage of noninterest bearing deposits to total deposits increased to 18.0% compared to 14.8% at December 31, 2020.
  • The cost of interest bearing deposits decreased approximately 47 basis points to 0.60% for the quarter ended September 30, 2021 when compared to the quarter ended September 30, 2020.
  • Investment securities totaled $105.9 million and represent 4.8% of total assets.
  • Tangible book value per share rose to $25.25 compared to $22.43 at December 31, 2020.
  • Shares issued and outstanding were 7,842,824, reflecting repurchases of 52,277 shares of common stock at a weighted average price of $27.26 during the quarter ended September 30, 2021.

Post Third Quarter 2021 Highlights:

  • Subsequent to September 30, 2021, the Company issued a 3.25% fixed-to-floating rate subordinated note due 2031 in the principal amount of $35.0 million. The proceeds will be used for repayment of $15.5 million of existing subordinated notes and general corporate purposes.
  • The Company's Board of Directors authorized an additional 200,000 shares for its existing share repurchase program.

Earnings and Performance

Revenues (net interest income plus noninterest income) for the quarter ended September 30, 2021 were $19.2 million, versus $14.2 million for the quarter ended September 30, 2020. Revenues for the nine months ended September 30, 2021 were $53.8 million, versus $42.8 million for the nine months ended September 30, 2020. The increase was primarily attributable to lower interest expense on deposits, an increase in interest and fees on loans due to loan growth and from the resumption of loan sales. Revenues for the nine months ended September 30, 2021 also benefited from a one-time federal payroll tax credit for COVID-19 of $0.9 million.

Net income for the quarter ended September 30, 2021 was $6.9 million, versus $3.0 million for the quarter ended September 30, 2020. Net income for the nine months ended September 30, 2021 was $18.8 million, versus $5.6 million for the nine months ended September 30, 2020. The increase in net income was primarily impacted by the aforementioned increases in revenues and a decrease in the provision for loan losses resulting from lower loan loss reserves in 2021 when compared to 2020, which saw a large increase in reserves due to the COVID-19 Pandemic.

Basic and diluted earnings per share were $0.88 and $0.87, respectively, for the quarter ended September 30, 2021 compared to basic and diluted earnings per share of $0.38 each for the quarter ended September 30, 2020. Basic and diluted earnings per share were $2.38 and $2.37, respectively, for the nine months ended September 30, 2021 compared to basic and diluted earnings per share of $0.71 each for the nine months ended September 30, 2020.

The net interest margin (fully taxable equivalent basis) for the quarters ended September 30, 2021 and September 30, 2020 was 3.39% and 2.67%, respectively. The net interest margin (fully taxable equivalent basis) for the nine months ended September 30, 2021 and September 30, 2020 was 3.08% and 2.81%, respectively. The increase in the net interest margin was due to a decrease in rates on interest bearing deposits and a greater percentage of noninterest bearing deposits. In addition, the increase in the net interest margin for the quarter ended September 30, 2021 was positively impacted by a reduction in excess liquidity when compared to the quarter ended September 30, 2020.

Financial Condition

Assets totaled $2.23 billion at September 30, 2021, compared to assets of $2.25 billion at December 31, 2020. The change in assets remained relatively flat as the decrease in excess liquidity was offset by an increase in loans. Gross loans totaled $1.8 billion at September 30, 2021, an increase of $198.9 million compared to December 31, 2020. Excluding PPP loans, gross loans increased by $232.1 million at September 30, 2021 when compared to December 31, 2020. Deposits totaled $1.9 billion at September 30, 2021, compared to deposits of $1.8 billion at December 31, 2020.

Capital

Shareholders’ equity totaled $196.2 million as of September 30, 2021, an increase of $19.6 million compared to December 31, 2020, primarily a result of (i) net income of $18.8 million for the nine months ended September 30, 2021 and (ii) a $6.2 million favorable impact to accumulated other comprehensive income driven by fair value marks related to hedge positions involving interest rate swaps. The Company's interest rate swaps are used to hedge interest rate risk. The Company's current interest rate swap positions will cause a decrease to other comprehensive income in a falling interest rate environment and an increase in a rising interest rate environment. The increase in Shareholders’ equity was partially offset by dividends paid of $3.6 million and common stock repurchases of $3.2 million.

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 Penko Ivanov, 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, but are not limited to, increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the securities markets, uncertain impacts of, or additional changes in, monetary, fiscal or tax policy to address the impact of COVID-19, prolonged measures to contain the spread of COVID-19 or premature easing of such containment measures, either of which could further exacerbate the effects on the Company’s business and results of operations, 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 book value per share, and return on average tangible common equity 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,

2021

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020

 

September 30,

2020

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

169,417

 

 

$

297,851

 

 

$

351,194

 

 

$

405,340

 

 

$

333,103

 

Federal funds sold

8,097

 

 

4,036

 

 

10,811

 

 

4,258

 

 

6,380

 

Cash and cash equivalents

177,514

 

 

301,887

 

 

362,005

 

 

409,598

 

 

339,483

 

 

 

 

 

 

 

 

 

 

 

Investment securities

 

 

 

 

 

 

 

 

 

Marketable equity securities, at fair value

2,185

 

 

2,192

 

 

2,178

 

 

2,207

 

 

2,203

 

Available for sale investment securities, at fair value

87,565

 

 

90,983

 

 

83,218

 

 

88,605

 

 

90,563

 

Held to maturity investment securities, at amortized cost

16,107

 

 

16,166

 

 

16,225

 

 

16,078

 

 

16,138

 

Total investment securities

105,857

 

 

109,341

 

 

101,621

 

 

106,890

 

 

108,904

 

Loans receivable (net of allowance for

loan losses of $16,803, $16,672,

$20,545, $21,009, and $20,372 at

September 30, 2021, June 30, 2021,

March 31, 2021, December 31, 2020,

and September 30, 2020, respectively)

1,805,217

 

 

1,719,274

 

 

1,650,127

 

 

1,601,672

 

 

1,600,776

 

Accrued interest receivable

6,911

 

 

6,661

 

 

7,306

 

 

6,579

 

 

7,294

 

Federal Home Loan Bank stock, at cost

3,632

 

 

3,844

 

 

6,446

 

 

7,860

 

 

7,860

 

Premises and equipment, net

35,118

 

 

33,916

 

 

33,386

 

 

21,762

 

 

26,616

 

Bank-owned life insurance

48,903

 

 

48,632

 

 

42,881

 

 

42,651

 

 

42,409

 

Goodwill

2,589

 

 

2,589

 

 

2,589

 

 

2,589

 

 

2,589

 

Other intangible assets

48

 

 

58

 

 

67

 

 

76

 

 

160

 

Deferred income taxes, net

7,718

 

 

8,208

 

 

8,908

 

 

11,300

 

 

11,149

 

Other assets

33,181

 

 

35,415

 

 

29,131

 

 

42,770

 

 

45,782

 

Total assets

$

2,226,688

 

 

$

2,269,825

 

 

$

2,244,467

 

 

$

2,253,747

 

 

$

2,193,022

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

Noninterest bearing deposits

$

338,705

 

 

$

328,473

 

 

$

280,947

 

 

$

270,235

 

 

$

234,848

 

Interest bearing deposits

1,544,118

 

 

1,610,829

 

 

1,578,861

 

 

1,557,081

 

 

1,532,680

 

Total deposits

1,882,823

 

 

1,939,302

 

 

1,859,808

 

 

1,827,316

 

 

1,767,528

 

 

 

 

 

 

 

 

 

 

 

Advances from the Federal Home Loan Bank

80,000

 

 

75,000

 

 

125,000

 

 

175,000

 

 

175,000

 

Subordinated debentures

15,374

 

 

15,366

 

 

25,271

 

 

25,258

 

 

25,245

 

Accrued expenses and other liabilities

52,314

 

 

49,362

 

 

46,445

 

 

49,571

 

 

50,982

 

Total liabilities

2,030,511

 

 

2,079,030

 

 

2,056,524

 

 

2,077,145

 

 

2,018,755

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

 

 

Common stock, no par value

119,588

 

 

120,451

 

 

120,398

 

 

121,338

 

 

120,854

 

Retained earnings

85,992

 

 

80,543

 

 

75,418

 

 

70,839

 

 

71,603

 

Accumulated other comprehensive loss

(9,403)

 

 

(10,199)

 

 

(7,873)

 

 

(15,575)

 

 

(18,190)

 

Total shareholders’ equity

196,177

 

 

190,795

 

 

187,943

 

 

176,602

 

 

174,267

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

$

2,226,688

 

 

$

2,269,825

 

 

$

2,244,467

 

 

$

2,253,747

 

 

$

2,193,022

 

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,

2021

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020

 

September 30,

2020

 

September 30,

2021

 

September 30,

2020

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

$

19,795

 

 

$

19,266

 

 

$

17,900

 

 

$

18,194

 

 

$

18,027

 

 

$

56,961

 

 

$

55,471

 

Interest and dividends on securities

731

 

 

736

 

 

769

 

 

835

 

 

799

 

 

2,236

 

 

2,402

 

Interest on cash and cash equivalents

88

 

 

90

 

 

108

 

 

117

 

 

96

 

 

286

 

 

468

 

Total interest and dividend income

20,614

 

 

20,092

 

 

18,777

 

 

19,146

 

 

18,922

 

 

59,483

 

 

58,341

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense on deposits

2,387

 

 

2,744

 

 

3,114

 

 

3,557

 

 

4,104

 

 

8,245

 

 

14,623

 

Interest expense on borrowings

503

 

 

769

 

 

1,008

 

 

1,285

 

 

1,210

 

 

2,280

 

 

3,187

 

Total interest expense

2,890

 

 

3,513

 

 

4,122

 

 

4,842

 

 

5,314

 

 

10,525

 

 

17,810

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

17,724

 

 

16,579

 

 

14,655

 

 

14,304

 

 

13,608

 

 

48,958

 

 

40,531

 

Provision (credit) for loan losses

134

 

 

(20)

 

 

(296)

 

 

709

 

 

712

 

 

(182)

 

 

6,896

 

Net interest income after

provision (credit) for loan losses

17,590

 

 

16,599

 

 

14,951

 

 

13,595

 

 

12,896

 

 

49,140

 

 

33,635

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains and fees from sales of loans

924

 

 

814

 

 

513

 

 

16

 

 

27

 

 

2,251

 

 

27

 

Bank owned life insurance

271

 

 

251

 

 

231

 

 

241

 

 

242

 

 

753

 

 

726

 

Service charges and fees

199

 

 

217

 

 

199

 

 

210

 

 

190

 

 

615

 

 

578

 

Gain on sale of other real estate owned, net

 

 

 

 

 

 

 

 

19

 

 

 

 

19

 

Other

43

 

 

158

 

 

1,013

 

 

154

 

 

136

 

 

1,213

 

 

913

 

Total noninterest income

1,437

 

 

1,440

 

 

1,956

 

 

621

 

 

614

 

 

4,832

 

 

2,263

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

4,782

 

 

3,960

 

 

4,769

 

 

5,453

 

 

5,295

 

 

13,511

 

 

15,902

 

Occupancy and equipment

2,615

 

 

3,250

 

 

2,406

 

 

4,516

 

 

2,266

 

 

8,271

 

 

6,410

 

Data processing

632

 

 

833

 

 

512

 

 

1,658

 

 

529

 

 

1,977

 

 

1,558

 

Professional services

498

 

 

547

 

 

587

 

 

591

 

 

374

 

 

1,632

 

 

1,519

 

Director fees

324

 

 

327

 

 

317

 

 

331

 

 

301

 

 

968

 

 

883

 

FDIC insurance

298

 

 

300

 

 

403

 

 

262

 

 

176

 

 

1,001

 

 

529

 

Marketing

186

 

 

140

 

 

(9)

 

 

118

 

 

151

 

 

317

 

 

512

 

Other

1,035

 

 

695

 

 

653

 

 

774

 

 

637

 

 

2,383

 

 

1,797

 

Total noninterest expense

10,370

 

 

10,052

 

 

9,638

 

 

13,703

 

 

9,729

 

 

30,060

 

 

29,110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax expense

8,657

 

 

7,987

 

 

7,269

 

 

513

 

 

3,781

 

 

23,912

 

 

6,788

 

Income tax expense

1,802

 

 

1,759

 

 

1,579

 

 

177

 

 

790

 

 

5,140

 

 

1,220

 

Net income

$

6,855

 

 

$

6,228

 

 

$

5,690

 

 

$

336

 

 

$

2,991

 

 

$

18,772

 

 

$

5,568

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Common Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.88

 

 

$

0.79

 

 

$

0.72

 

 

$

0.04

 

 

$

0.38

 

 

$

2.38

 

 

$

0.71

 

Diluted

$

0.87

 

 

$

0.79

 

 

$

0.71

 

 

$

0.04

 

 

$

0.38

 

 

$

2.37

 

 

$

0.71

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

7,677,822

 

 

7,722,481

 

 

7,758,540

 

 

7,726,926

 

 

7,721,247

 

 

7,721,943

 

 

7,728,798

 

Diluted

7,738,758

 

 

7,768,026

 

 

7,800,777

 

 

7,728,206

 

 

7,721,459

 

 

7,779,632

 

 

7,749,199

 

Dividends per common share

$

0.18

 

 

$

0.14

 

 

$

0.14

 

 

$

0.14

 

 

$

0.14

 

 

$

0.46

 

 

$

0.42

 

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)

 

 

For the Quarter Ended

 

For the Nine Months Ended

 

September 30,

2021

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020

 

September 30,

2020

 

September 30,

2021

 

September 30,

2020

Performance ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets(1)

1.22

%

 

1.11

%

 

1.02

%

 

0.06

%

 

0.55

%

 

1.12

%

 

0.36

%

Return on average

stockholders' equity(1)

14.09

%

 

13.06

%

 

12.67

%

 

0.75

%

 

6.87

%

 

13.29

%

 

4.23

%

Return on average tangible

common equity(1)

14.29

%

 

13.25

%

 

12.86

%

 

0.76

%

 

6.98

%

 

13.48

%

 

4.30

%

Net interest margin

3.39

%

 

3.12

%

 

2.74

%

 

2.66

%

 

2.67

%

 

3.08

%

 

2.81

%

Efficiency ratio(2)

54.1

%

 

55.7

%

 

58.0

%

 

91.2

%

 

68.4

%

 

55.8

%

 

67.9

%

Net loan charge-offs as a % of

average loans

%

 

0.23

%

 

0.01

%

 

%

 

%

 

0.24

%

 

%

Dividend payout ratio(3)

20.69

%

 

17.72

%

 

19.72

%

 

350.00

%

 

36.84

%

 

19.41

%

 

59.15

%

(1) 2020 performance ratios were negatively impacted by COVID-19 pandemic related loan loss reserves and $3.9 million in one-time charges related to office consolidation, contract termination and employee severance costs recognized in the fourth quarter of 2020.

(2) 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.

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

 

As of

 

September 30,

2021

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020

 

September 30,

2020

Capital ratios:

 

 

 

 

 

 

 

 

 

Total Common Equity Tier 1 Capital to

Risk-Weighted Assets(1)

10.59

%

 

10.95

%

 

11.02

%

 

11.06

%

 

12.36

%

Total Capital to Risk-Weighted Assets(1)

11.44

%

 

11.84

%

 

12.17

%

 

12.28

%

 

13.57

%

Tier I Capital to Risk-Weighted Assets(1)

10.59

%

 

10.95

%

 

11.02

%

 

11.06

%

 

12.36

%

Tier I Capital to Average Assets(1)

9.61

%

 

9.19

%

 

8.82

%

 

8.44

%

 

9.58

%

Tangible common equity to tangible assets

8.70

%

 

8.30

%

 

8.27

%

 

7.73

%

 

7.83

%

Tangible book value per common share(2)

$

25.25

 

 

$

24.40

 

 

$

23.99

 

 

$

22.43

 

 

$

22.20

 

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

(2) Excludes unvested restricted shares of 178,797, 184,548, 186,485, 163,369, and 170,083 as of September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, respectively.

BANKWELL FINANCIAL GROUP, INC.

ASSET QUALITY (unaudited)

(Dollars in thousands)

 

 

For the Quarter Ended

 

September 30,

2021

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020

 

September 30,

2020

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$

16,672

 

 

$

20,545

 

 

$

21,009

 

 

$

20,372

 

 

$

19,662

 

Charge-offs:

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

(3,814)

 

 

(163)

 

 

 

 

 

Commercial business

 

 

(51)

 

 

 

 

(75)

 

 

 

Consumer

(15)

 

 

(4)

 

 

(14)

 

 

(11)

 

 

(4)

 

Total charge-offs

(15)

 

 

(3,869)

 

 

(177)

 

 

(86)

 

 

(4)

 

Recoveries:

 

 

 

 

 

 

 

 

 

Commercial business

11

 

 

16

 

 

 

 

14

 

 

 

Consumer

1

 

 

 

 

9

 

 

 

 

2

 

Total recoveries

12

 

 

16

 

 

9

 

 

14

 

 

2

 

Net loan charge-offs

(3)

 

 

(3,853)

 

 

(168)

 

 

(72)

 

 

(2)

 

Provision (credit) for loan losses

134

 

 

(20)

 

 

(296)

 

 

709

 

 

712

 

Balance at end of period

$

16,803

 

 

$

16,672

 

 

$

20,545

 

 

$

21,009

 

 

$

20,372

 

 

As of

 

September 30,

2021

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020

 

September 30,

2020

Asset quality:

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

 

 

 

 

 

 

 

 

Residential real estate

$

1,849

 

 

$

1,160

 

 

$

1,289

 

 

$

1,492

 

 

$

1,596

 

Commercial real estate

16,314

 

 

15,392

 

 

19,277

 

 

21,093

 

 

4,812

 

Commercial business

1,754

 

 

1,780

 

 

1,803

 

 

1,834

 

 

3,760

 

Construction

8,997

 

 

8,997

 

 

8,997

 

 

8,997

 

 

 

Total nonaccrual loans

28,914

 

 

27,329

 

 

31,366

 

 

33,416

 

 

10,168

 

Other real estate owned

 

 

 

 

 

 

 

 

 

Total nonperforming assets

$

28,914

 

 

$

27,329

 

 

$

31,366

 

 

$

33,416

 

 

$

10,168

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans as a % of total

loans

1.58

%

 

1.57

%

 

1.87

%

 

2.06

%

 

0.63

%

Nonperforming assets as a % of total

assets

1.30

%

 

1.20

%

 

1.40

%

 

1.48

%

 

0.46

%

Allowance for loan losses as a % of total

loans

0.92

%

 

0.96

%

 

1.23

%

 

1.29

%

 

1.25

%

Allowance for loan losses as a % of

nonperforming loans

58.11

%

 

61.00

%

 

65.50

%

 

62.87

%

 

200.35

%

Total nonaccrual loans declined $4.5 million to $28.9 million as of September 30, 2021 when compared to December 31, 2020 partially a result of the charge-offs recognized in the second quarter of 2021. The Bank continues work-out activity on its nonaccrual loan population. Nonperforming assets as a percentage of total assets was 1.30% at September 30, 2021, down from 1.48% at December 31, 2020. The allowance for loan losses at September 30, 2021 was $16.8 million, representing 0.92% of total loans.

BANKWELL FINANCIAL GROUP, INC.

LOAN & DEPOSIT PORTFOLIO (unaudited)

(Dollars in thousands)

 

Period End Loan Composition

September 30,

2021

 

June 30,

2021

 

December 31,

2020

 

Current QTD

% Change

 

YTD

% Change

Residential Real Estate

$

90,110

 

 

$

100,260

 

 

$

113,557

 

 

(10.1)

%

 

(20.6)

%

Commercial Real Estate(1)

1,337,896

 

 

1,266,731

 

 

1,148,383

 

 

5.6

 

 

16.5

 

Construction

94,665

 

 

82,805

 

 

87,007

 

 

14.3

 

 

8.8

 

Total Real Estate Loans

1,522,671

 

 

1,449,796

 

 

1,348,947

 

 

5.0

 

 

12.9

 

 

 

 

 

 

 

 

 

 

 

Commercial Business(2)

292,825

 

 

279,814

 

 

276,601

 

 

4.6

 

 

5.9

 

 

 

 

 

 

 

 

 

 

 

Consumer

9,050

 

 

8,883

 

 

79

 

 

1.9

 

 

N/M(3)

Total Loans

$

1,824,546

 

 

$

1,738,493

 

 

$

1,625,627

 

 

4.9

%

 

12.2

%

 

 

 

 

 

 

 

 

 

 

(1) Includes owner occupied commercial real estate.

(2) Includes $1.6 million, $7.9 million, and $34.8 million of PPP loans at September 30, 2021, June 30, 2021 and December 31, 2020, respectively.

(3) Metric not meaningful.

Gross loans totaled $1.8 billion at September 30, 2021, an increase of $198.9 million compared to December 31, 2020. Excluding PPP loans, gross loans increased by $232.1 million, or 14.6%, at September 30, 2021 when compared to December 31, 2020.

Period End Deposit Composition

September 30,

2021

 

June 30,

2021

 

December 31,

2020

 

Current QTD

% Change

 

YTD

% Change

Noninterest bearing demand

$

338,705

 

 

$

328,473

 

 

$

270,235

 

 

3.1

%

 

25.3

%

NOW

103,180

 

 

136,558

 

 

101,737

 

 

(24.4)

 

 

1.4

 

Money Market

835,210

 

 

814,083

 

 

669,364

 

 

2.6

 

 

24.8

 

Savings

188,581

 

 

173,943

 

 

158,750

 

 

8.4

 

 

18.8

 

Time

417,147

 

 

486,245

 

 

627,230

 

 

(14.2)

 

 

(33.5)

 

Total Deposits

$

1,882,823

 

 

$

1,939,302

 

 

$

1,827,316

 

 

(2.9)

%

 

3.0

%

Total deposits were $1.9 billion at September 30, 2021, compared to $1.8 billion at December 31, 2020, an increase of $55.5 million, or 3.0%.

BANKWELL FINANCIAL GROUP, INC.

NONINTEREST INCOME (unaudited)

(Dollars in thousands)

 

 

For the Quarter Ended

 

 

 

 

Noninterest income

September 30,

2021

 

June 30,

2021

 

September 30,

2020

 

Sep 21 vs. June 21

% Change

 

Sep 21 vs. Sep 20

% Change

Gains and fees from sales of loans

$

924

 

 

$

814

 

 

$

27

 

 

13.5

%

 

3,322.2

%

Bank owned life insurance

271

 

 

251

 

 

242

 

 

8.0

 

 

12.0

 

Service charges and fees

199

 

 

217

 

 

190

 

 

(8.3)

 

 

4.7

 

Gain on sale of other real estate owned, net

 

 

 

 

19

 

 

N/A

 

(100.0)

 

Other

43

 

 

158

 

 

136

 

 

(72.8)

 

 

(68.4)

 

Total noninterest income

$

1,437

 

 

$

1,440

 

 

$

614

 

 

(0.2)

%

 

134.0

%

 

For the Nine Months Ended

 

 

Noninterest income

September 30, 2021

 

September 30, 2020

 

% Change

Gains and fees from sales of loans

$

2,251

 

 

$

27

 

 

8,237.0

%

Bank owned life insurance

753

 

 

726

 

 

3.7

 

Service charges and fees

615

 

 

578

 

 

6.4

 

Gain on sale of other real estate owned, net

 

 

19

 

 

(100.0)

 

Other

1,213

 

 

913

 

 

32.9

 

Total noninterest income

$

4,832

 

 

$

2,263

 

 

113.5

%

Noninterest income increased by $0.8 million to $1.4 million for the quarter ended September 30, 2021 compared to the quarter ended September 30, 2020. Noninterest income increased by $2.6 million to $4.8 million for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020.

The increase in noninterest income was driven by resumed loan sales, totaling $0.9 million and $2.3 million for the quarter and nine months ended September 30, 2021, respectively. In addition, the increase in noninterest income for the nine months ended September 30, 2021 was impacted by a one-time federal payroll tax credit for COVID-19 of $0.9 million, partially offset by $0.4 million of non-recurring interest rate swap fees recognized during the nine months ended September 30, 2020.

BANKWELL FINANCIAL GROUP, INC.

NONINTEREST EXPENSE (unaudited)

(Dollars in thousands)

 

 

For the Quarter Ended

 

 

 

 

Noninterest expense

September 30,

2021

 

June 30,

2021

 

September 30,

2020

 

Sep 21 vs. June 21

% Change

 

Sep 21 vs. Sep 20

% Change

Salaries and employee benefits

$

4,782

 

 

$

3,960

 

 

$

5,295

 

 

20.8

%

 

(9.7)

%

Occupancy and equipment

2,615

 

 

3,250

 

 

2,266

 

 

(19.5)

 

 

15.4

 

Data processing

632

 

 

833

 

 

529

 

 

(24.1)

 

 

19.5

 

Professional services

498

 

 

547

 

 

374

 

 

(9.0)

 

 

33.2

 

Director fees

324

 

 

327

 

 

301

 

 

(0.9)

 

 

7.6

 

FDIC insurance

298

 

 

300

 

 

176

 

 

(0.7)

 

 

69.3

 

Marketing

186

 

 

140

 

 

151

 

 

32.9

 

 

23.2

 

Other

1,035

 

 

695

 

 

637

 

 

48.9

 

 

62.5

 

Total noninterest expense

$

10,370

 

 

$

10,052

 

 

$

9,729

 

 

3.2

%

 

6.6

%

 

 

For the Nine Months Ended

 

 

Noninterest expense

September 30, 2021

 

September 30, 2020

 

% Change

Salaries and employee benefits

$

13,511

 

 

$

15,902

 

 

(15.0)

%

Occupancy and equipment

8,271

 

 

6,410

 

 

29.0

 

Data processing

1,977

 

 

1,558

 

 

26.9

 

Professional services

1,632

 

 

1,519

 

 

7.4

 

FDIC insurance

1,001

 

 

529

 

 

89.2

 

Director fees

968

 

 

883

 

 

9.6

 

Marketing

317

 

 

512

 

 

(38.1)

 

Other

2,383

 

 

1,797

 

 

32.6

 

Total noninterest expense

$

30,060

 

 

$

29,110

 

 

3.3

%

Noninterest expense increased by $0.6 million to $10.4 million for the quarter ended September 30, 2021 compared to the quarter ended September 30, 2020. The increase in noninterest expense was primarily driven by an increase in occupancy and equipment expense and other expense, partially offset by a decrease in salaries and employee benefits expense.

Noninterest expense increased by $1.0 million to $30.1 million for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. The increase in noninterest expense was primarily driven by an increase in occupancy and equipment expense, data processing expense, FDIC insurance expense and other expense, partially offset by a decrease in salaries and employee benefits expense.

Occupancy and equipment expense totaled $2.6 million for the quarter ended September 30, 2021, an increase of $0.3 million when compared to the same period in 2020. Occupancy and equipment expense totaled $8.3 million for the nine months ended September 30, 2021, an increase of $1.9 million when compared to the same period in 2020. The increase in occupancy and equipment expense was primarily due to additional one-time charges associated with office consolidation activity (previously disclosed in the fourth quarter of 2020) and an increase in lease expense resulting from the commencement of the lease on the Company's new headquarters building.

Data processing expense totaled $2.0 million for the nine months ended September 30, 2021, an increase of $0.4 million when compared to the same period in 2020. The increase in data processing expense was primarily due to $0.4 million in costs associated with the conversion to a new online banking system implemented in the second quarter of 2021.

FDIC insurance expense totaled $1.0 million for the nine months ended September 30, 2021, an increase of $0.5 million when compared to the same period in 2020. The increase in FDIC insurance expense was due to the absence of available FDIC insurance credits recognized in the first quarter of 2020 and elevated expense due to liquidity driven balance sheet growth in the first half 2021.

Salaries and employee benefits expense totaled $4.8 million for the quarter ended September 30, 2021, a decrease of $0.5 million when compared to the same period in 2020. Salaries and employee benefits expense totaled $13.5 million for the nine months ended September 30, 2021, a decrease of $2.4 million when compared to the same period in 2020. The decrease in salaries and employee benefits expense was primarily driven by a decrease in full time equivalent employees as a direct result of the Voluntary Early Retirement Incentive Plan offered to eligible employees and other employee actions taken during the fourth quarter of 2020. Full time equivalent employees totaled 134 at September 30, 2021 compared to 142 for the same period in 2020. Average full time equivalent employees totaled 127 for the nine months ended September 30, 2021 compared to 151 for the same period in 2020. In addition, salaries and employee benefits expense also benefited by one-time deferrals of $0.6 million for the nine months ended September 30, 2021 in costs associated with a new online banking and other systems.

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,

2021

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020

 

September 30,

2020

Total Equity

$

196,177

 

 

$

190,795

 

 

$

187,943

 

 

$

176,602

 

 

$

174,267

 

Less:

 

 

 

 

 

 

 

 

 

Goodwill

2,589

 

 

2,589

 

 

2,589

 

 

2,589

 

 

2,589

 

Other intangibles

48

 

 

58

 

 

67

 

 

76

 

 

160

 

Tangible Common Equity

$

193,540

 

 

$

188,148

 

 

$

185,287

 

 

$

173,937

 

 

$

171,518

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

2,226,688

 

 

$

2,269,825

 

 

$

2,244,467

 

 

$

2,253,747

 

 

$

2,193,022

 

Less:

 

 

 

 

 

 

 

 

 

Goodwill

2,589

 

 

2,589

 

 

2,589

 

 

2,589

 

 

2,589

 

Other intangibles

48

 

 

58

 

 

67

 

 

76

 

 

160

 

Tangible Assets

$

2,224,051

 

 

$

2,267,178

 

 

$

2,241,811

 

 

$

2,251,082

 

 

$

2,190,273

 

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity to Tangible Assets

8.70

%

 

8.30

%

 

8.27

%

 

7.73

%

 

7.83

%

 

As of

Computation of Tangible Book Value per

Common Share

September 30,

2021

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020

 

September 30,

2020

Total shareholders' equity

$

196,177

 

 

$

190,795

 

 

$

187,943

 

 

$

176,602

 

 

$

174,267

 

Less:

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

 

 

Common shareholders' equity

$

196,177

 

 

$

190,795

 

 

$

187,943

 

 

$

176,602

 

 

$

174,267

 

Less:

 

 

 

 

 

 

 

 

 

Goodwill

2,589

 

 

2,589

 

 

2,589

 

 

2,589

 

 

2,589

 

Other intangibles

48

 

 

58

 

 

67

 

 

76

 

 

160

 

Tangible common shareholders' equity

$

193,540

 

 

$

188,148

 

 

$

185,287

 

 

$

173,937

 

 

$

171,518

 

Common shares

7,842,824

 

 

7,895,101

 

 

7,908,630

 

 

7,919,278

 

 

7,896,503

 

Less:

 

 

 

 

 

 

 

 

 

Shares of unvested restricted stock

178,797

 

 

184,548

 

 

186,485

 

 

163,369

 

 

170,083

 

Common shares less unvested restricted stock

7,664,027

 

 

7,710,553

 

 

7,722,145

 

 

7,755,909

 

 

7,726,420

 

Book value per share

$

25.60

 

 

$

24.74

 

 

$

24.34

 

 

$

22.77

 

 

$

22.55

 

Less:

 

 

 

 

 

 

 

 

 

Effects of intangible assets

$

0.34

 

 

$

0.34

 

 

$

0.34

 

 

$

0.34

 

 

$

0.36

 

 

 

 

 

 

 

 

 

 

 

Tangible Book Value per Common Share

$

25.25

 

 

$

24.40

 

 

$

23.99

 

 

$

22.43

 

 

$

22.20

 

BANKWELL FINANCIAL GROUP, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited) - Continued

(Dollars in thousands)

 

 

For the Quarter Ended

 

For the Nine Months Ended

Computation of

Efficiency Ratio

September 30,

2021

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020

 

September 30,

2020

 

September 30,

2021

 

September 30,

2020

Noninterest expense

$

10,370

 

 

$

10,052

 

 

$

9,638

 

 

$

13,703

 

 

$

9,729

 

 

$

30,060

 

 

$

29,110

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of

intangible assets

9

 

 

9

 

 

9

 

 

84

 

 

18

 

 

28

 

 

54

 

Other real estate

owned expenses

 

 

 

 

 

 

 

 

 

 

 

 

6

 

Adjusted noninterest expense

$

10,361

 

 

$

10,043

 

 

$

9,629

 

 

$

13,619

 

 

$

9,711

 

 

$

30,032

 

 

$

29,050

 

Net interest income

$

17,724

 

 

$

16,579

 

 

$

14,655

 

 

$

14,304

 

 

$

13,608

 

 

$

48,958

 

 

$

40,531

 

Noninterest income

1,437

 

 

1,440

 

 

1,956

 

 

621

 

 

614

 

 

4,832

 

 

2,263

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain on sale of

available for sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of other

real estate owned, net

 

 

 

 

 

 

 

 

19

 

 

 

 

19

 

Operating revenue

$

19,161

 

 

$

18,019

 

 

$

16,611

 

 

$

14,925

 

 

$

14,203

 

 

$

53,790

 

 

$

42,775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

54.1

%

 

55.7

%

 

58.0

%

 

91.2

%

 

68.4

%

 

55.8

%

 

67.9

%

 

For the Quarter Ended

 

For the Nine Months Ended

Computation of

Return on Average

Tangible Common Equity

September 30,

2021

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020

 

September 30,

2020

 

September 30,

2021

 

September 30,

2020

Net Income

Attributable to

Common Shareholders

$

6,855

 

 

$

6,228

 

 

$

5,690

 

 

$

336

 

 

$

2,991

 

 

$

18,772

 

 

$

5,568

 

Total average

shareholders' equity

$

192,993

 

 

$

191,224

 

 

$

182,058

 

 

$

178,439

 

 

$

173,162

 

 

$

188,794

 

 

$

175,838

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Goodwill

2,589

 

 

2,589

 

 

2,589

 

 

2,589

 

 

2,589

 

 

2,589

 

 

2,589

 

Average Other intangibles

54

 

 

64

 

 

73

 

 

153

 

 

172

 

 

64

 

 

190

 

Average tangible

common equity

$

190,350

 

 

$

188,571

 

 

$

179,396

 

 

$

175,697

 

 

$

170,401

 

 

$

186,141

 

 

$

173,059

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Return

on Average Tangible

Common Equity

14.29

%

 

13.25

%

 

12.86

%

 

0.76

%

 

6.98

%

 

13.48

%

 

4.30

%

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, 2021

 

September 30, 2020

 

Average

Balance

 

Interest

 

Yield/

Rate (4)

 

Average

Balance

 

Interest

 

Yield/

Rate (4)

Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and Fed funds sold

$

209,500

 

 

$

88

 

 

0.17

%

 

$

312,078

 

 

$

96

 

 

0.12

%

Securities(1)

105,030

 

 

766

 

 

2.92

 

 

96,448

 

 

776

 

 

3.22

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

1,270,375

 

 

14,345

 

 

4.42

 

 

1,087,765

 

 

12,570

 

 

4.52

 

Residential real estate

95,100

 

 

809

 

 

3.40

 

 

125,069

 

 

1,097

 

 

3.51

 

Construction

88,728

 

 

845

 

 

3.73

 

 

94,984

 

 

1,029

 

 

4.24

 

Commercial business

314,484

 

 

3,707

 

 

4.61

 

 

322,066

 

 

3,329

 

 

4.04

 

Consumer

8,870

 

 

89

 

 

3.99

 

 

121

 

 

2

 

 

7.37

 

Total loans

1,777,557

 

 

19,795

 

 

4.36

 

 

1,630,005

 

 

18,027

 

 

4.33

 

Federal Home Loan Bank stock

3,133

 

 

16

 

 

2.04

 

 

7,835

 

 

77

 

 

3.91

 

Total earning assets

2,095,220

 

 

$

20,665

 

 

3.86

%

 

2,046,366

 

 

$

18,976

 

 

3.63

%

Other assets

131,670

 

 

 

 

 

 

132,617

 

 

 

 

 

Total assets

$

2,226,890

 

 

 

 

 

 

$

2,178,983

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

NOW

$

111,813

 

 

$

51

 

 

0.18

%

 

$

87,890

 

 

$

40

 

 

0.18

%

Money market

824,203

 

 

1,053

 

 

0.51

 

 

517,638

 

 

859

 

 

0.66

 

Savings

182,848

 

 

96

 

 

0.21

 

 

163,135

 

 

237

 

 

0.58

 

Time

448,218

 

 

1,187

 

 

1.05

 

 

757,176

 

 

2,968

 

 

1.56

 

Total interest bearing deposits

1,567,082

 

 

2,387

 

 

0.60

 

 

1,525,839

 

 

4,104

 

 

1.07

 

Borrowed Money

72,960

 

 

503

 

 

2.70

 

 

200,237

 

 

1,210

 

 

2.36

 

Total interest bearing liabilities

1,640,042

 

 

$

2,890

 

 

0.70

%

 

1,726,076

 

 

$

5,314

 

 

1.22

%

Noninterest bearing deposits

341,303

 

 

 

 

 

 

226,473

 

 

 

 

 

Other liabilities

52,552

 

 

 

 

 

 

53,272

 

 

 

 

 

Total liabilities

2,033,897

 

 

 

 

 

 

2,005,821

 

 

 

 

 

Shareholders' equity

192,993

 

 

 

 

 

 

173,162

 

 

 

 

 

Total liabilities and

shareholders' equity

$

2,226,890

 

 

 

 

 

 

$

2,178,983

 

 

 

 

 

Net interest income(2)

 

 

$

17,775

 

 

 

 

 

 

$

13,662

 

 

 

Interest rate spread

 

 

 

 

3.16

%

 

 

 

 

 

2.41

%

Net interest margin(3)

 

 

 

 

3.39

%

 

 

 

 

 

2.67

%

(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 $54 thousand for the quarters ended September 30, 2021 and 2020, 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, 2021

 

September 30, 2020

 

Average

Balance

 

Interest

 

Yield/

Rate (4)

 

Average

Balance

 

Interest

 

Yield/

Rate (4)

Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and Fed funds sold

$

315,102

 

 

$

286

 

 

0.12

%

 

$

207,058

 

 

$

468

 

 

0.30

%

Securities(1)

103,192

 

 

2,315

 

 

2.99

 

 

96,761

 

 

2,289

 

 

3.15

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

1,188,049

 

 

40,802

 

 

4.53

 

 

1,094,956

 

 

38,460

 

 

4.61

 

Residential real estate

104,320

 

 

2,669

 

 

3.41

 

 

134,369

 

 

3,636

 

 

3.61

 

Construction

97,828

 

 

2,769

 

 

3.73

 

 

98,539

 

 

3,350

 

 

4.47

 

Commercial business

302,019

 

 

10,495

 

 

4.58

 

 

289,959

 

 

10,017

 

 

4.54

 

Consumer

7,601

 

 

226

 

 

3.97

 

 

130

 

 

8

 

 

8.15

 

Total loans

1,699,817

 

 

56,961

 

 

4.42

 

 

1,617,953

 

 

55,471

 

 

4.50

 

Federal Home Loan Bank stock

4,608

 

 

72

 

 

2.09

 

 

7,547

 

 

272

 

 

4.81

 

Total earning assets

2,122,719

 

 

$

59,634

 

 

3.70

%

 

1,929,319

 

 

$

58,500

 

 

3.98

%

Other assets

119,098

 

 

 

 

 

 

125,957

 

 

 

 

 

Total assets

$

2,241,817

 

 

 

 

 

 

$

2,055,276

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

NOW

$

110,637

 

 

$

148

 

 

0.18

%

 

$

76,661

 

 

$

99

 

 

0.17

%

Money market

781,178

 

 

2,944

 

 

0.50

 

 

473,485

 

 

3,213

 

 

0.91

 

Savings

170,749

 

 

313

 

 

0.24

 

 

170,262

 

 

1,204

 

 

0.94

 

Time

532,278

 

 

4,840

 

 

1.22

 

 

721,051

 

 

10,107

 

 

1.87

 

Total interest bearing deposits

1,594,842

 

 

8,245

 

 

0.69

 

 

1,441,459

 

 

14,623

 

 

1.36

 

Borrowed Money

108,737

 

 

2,280

 

 

2.77

 

 

187,177

 

 

3,187

 

 

2.24

 

Total interest bearing liabilities

1,703,579

 

 

$

10,525

 

 

0.83

%

 

1,628,636

 

 

$

17,810

 

 

1.46

%

Noninterest bearing deposits

303,421

 

 

 

 

 

 

201,384

 

 

 

 

 

Other liabilities

46,023

 

 

 

 

 

 

49,418

 

 

 

 

 

Total liabilities

2,053,023

 

 

 

 

 

 

1,879,438

 

 

 

 

 

Shareholders' equity

188,794

 

 

 

 

 

 

175,838

 

 

 

 

 

Total liabilities and

shareholders' equity

$

2,241,817

 

 

 

 

 

 

$

2,055,276

 

 

 

 

 

Net interest income(2)

 

 

$

49,109

 

 

 

 

 

 

$

40,690

 

 

 

Interest rate spread

 

 

 

 

2.87

%

 

 

 

 

 

2.52

%

Net interest margin(3)

 

 

 

 

3.08

%

 

 

 

 

 

2.81

%

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

(2) The adjustment for securities and loans taxable equivalency amounted to $151 thousand and $159 thousand for the nine months ended September 30, 2021 and 2020, 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. 

Contacts

Bankwell Financial Group

Christopher R. Gruseke, President and Chief Executive Officer

Penko Ivanov, Executive Vice President and Chief Financial Officer

(203) 652-0166

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