To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Core Viewpoint - Bankwell Financial Group reported a strong fourth-quarter performance with net income of $9.1 million, driven by net interest margin expansion and a rebound in non-interest income, particularly from the SBA division [4][6][9]. Financial Performance - The company achieved a net interest margin of 3.40%, an increase of 6 basis points from the previous quarter, attributed to a reduction in deposit costs [3][6]. - GAAP net income for Q4 was $9.1 million, or $1.15 per share, which included a one-time tax adjustment of $1.5 million; adjusted operating income was $10.7 million, or $1.36 per share [4][6]. - Non-interest income rose to $3.4 million, a 35% increase from the prior quarter, largely due to $2.2 million in SBA gain-on-sale income [9][10]. Loan Growth and Portfolio Management - The company funded $240 million in loans during Q4, resulting in a 5% annual loan growth, with total funded originations for the year reaching $758 million [5][7]. - Floating-rate loans increased to 38% of the portfolio, up from 23% at the end of 2024, reflecting a strategic shift towards higher-yielding assets [7]. Deposit Repricing and Cost Management - Management indicated that $1.2 billion in time deposits are expected to reprice favorably over the next 12 months, potentially providing an annualized benefit of approximately $4 million [1][6]. - The total deposit cost at the end of 2025 was reported at 3.08%, following a 50 basis point reduction in offered time deposit rates [2][6]. Credit Quality and Capital Position - Non-performing assets decreased to 49 basis points of total assets, down from 56 basis points in the prior quarter, indicating improved credit quality [12]. - The allowance for credit losses was reported at 108 basis points of total loans, with coverage of non-performing loans increasing to 188% [13]. 2026 Outlook - Management provided guidance for 2026, projecting loan growth of 4% to 5%, net interest income between $111 million and $112 million, and non-interest income of approximately $11 million to $12 million [17]. - The company expects to maintain profitability growth alongside investments in personnel and technology, with a headcount increase of over 10% in 2025 [16].

Financial Data and Key Metrics Changes - The company's Fourth Quarter GAAP net income was $9.1 million, or $1.15 per share, which includes a $1.5 million one-time adjustment related to tax provisions [3][9] - Excluding the one-time adjustment, operating income for the quarter was $10.7 million, or $1.36 per share [3][13] - Pre-provision net revenue return on average assets was 180 basis points, an increase of 10 basis points from the prior quarter and 75 basis points from Q4 of 2024 [4][9] - Net interest margin expanded to 340 basis points, up 6 basis points from the prior quarter [9][10] - The efficiency ratio improved to 50.8% from 51.4% in the prior quarter [8] Business Line Data and Key Metrics Changes - The SBA division contributed significantly to non-interest income, with $2.2 million in gains on sale for the quarter, leading to a total of $5.1 million for the year [7][11] - Loan production remained strong, with $240 million of new loans funded in the Fourth Quarter, totaling $758 million for the year [6][9] - Net loan growth for the quarter was $122 million, with a total of $134 million for the year, representing 5% annual growth [7][9] Market Data and Key Metrics Changes - Floating-rate loans comprised 38% of the total loan portfolio at year-end 2025, up from 23% at the end of 2024 [5] - Average low-cost deposit balances increased by $22 million, or 5%, over the prior quarter and by $86 million, or 21%, compared to Q4 of 2024 [5][11] Company Strategy and Development Direction - The company aims to strengthen credit, improve the funding mix, build non-interest income, and generate high-quality growth while investing in people and technology [14][15] - The focus on diversified recurring revenue sources is yielding positive results, particularly with the growth of the SBA division [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 with a strong position and anticipates loan growth of 4%-5% and net interest income in the range of $111 million-$112 million [15] - The company expects non-interest income to increase to approximately $11 million-$12 million and total non-interest expense to be between $64 million-$65 million [15] Other Important Information - The allowance for credit losses stands at 108 basis points of total loans, with coverage of non-performing loans increasing to 188% [12] - The effective tax rate for the full year 2025 was 27.4%, influenced by a one-time tax expense, with an expected future rate of approximately 25% [13] Q&A Session Summary Question: Loan growth expectations for 2026 - Management indicated that loan growth is expected to pick up in 2026, driven by a balance of payoffs and new originations [18][19] Question: Composition of the loan pipeline - The loan pipeline is currently 60% C&I and 40% Investor CRE, with expectations to continue strong C&I real estate originations in 2026 [24] Question: Low-cost deposit growth expectations - While no specific guidance was provided, management expects steady improvement in low-cost deposits, which grew 5% from the previous quarter and 21% year-over-year [28][30] Question: SBA originations outlook for 2026 - The company anticipates achieving significant SBA originations in 2026, building on the first full year of the SBA division's operations [42] Question: Expense growth drivers for 2026 - Expense growth is expected to be driven by investments in people and processes, with a headcount increase of over 10% in the previous year [48][51]

Financial Data and Key Metrics Changes - Q4 GAAP net income was $9.1 million, or $1.15 per share, including a $1.5 million one-time tax adjustment; operating income was $10.7 million, or $1.36 per share [3][4] - Pre-provision net revenue return on average assets was 180 basis points, up 10 basis points from the prior quarter and 75 basis points from Q4 2024 [4][9] - Net interest margin expanded to 340 basis points, a 6 basis point increase from the prior quarter [9][10] - Efficiency ratio improved to 50.8%, compared to 51.4% in the prior quarter [8] Business Line Data and Key Metrics Changes - Net loan growth for Q4 was $122 million, with full-year growth of $134 million, representing 5% annual growth [7][9] - Non-interest income increased to $3.4 million, driven by $2.2 million of SBA gain on sale income, a 35% increase from the linked quarter [11] - SBA originations totaled $24 million in Q4, contributing to $68 million of total originations for the year [7][9] Market Data and Key Metrics Changes - Floating-rate loans comprised 38% of the total loan portfolio, up from 23% at the end of 2024 [5] - Average low-cost deposit balances increased by $22 million, or 5%, over the prior quarter and by $86 million, or 21%, versus Q4 2024 [5][9] Company Strategy and Development Direction - The company aims to strengthen credit, improve funding mix, build non-interest income, and invest in technology and people [15][16] - The focus on diversified recurring revenue sources is yielding positive results, particularly in the SBA division [15] - The company anticipates loan growth of 4%-5% and expects net interest income to be in the range of $111 million-$112 million for 2026 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position heading into 2026, highlighting improvements in credit quality and funding mix [15][16] - The company expects to continue benefiting from a favorable repricing of time deposits over the next 12 months [10][12] Other Important Information - The allowance for credit losses stands at 108 basis points of total loans, with coverage of non-performing loans increasing to 188% [11][12] - The effective tax rate for the full year 2025 was 27.4%, influenced by a one-time tax expense [14] Q&A Session Summary Question: Loan growth expectations for 2026 - Management indicated that loan growth is expected to pick up in 2026, driven by a balance of payoffs and new originations [19][21] Question: Composition of the loan pipeline - The loan pipeline is currently 60% commercial and industrial (C&I) loans, with a focus on maintaining strong C&I real estate originations [25] Question: Expectations for low-cost deposit growth - While no specific guidance was provided, management expects steady improvement in low-cost deposits, which grew 5% from the previous quarter [29][31] Question: SBA originations outlook for 2026 - Management anticipates significant growth in SBA originations, aiming for around $100 million to achieve non-interest income targets [39][43] Question: Drivers of expense growth in 2026 - Expense growth is expected to be driven by investments in people and processes, with a headcount increase of over 10% in the past year [49][52]

Financial Data and Key Metrics Changes - The company reported a GAAP net income of $9.1 million, or $1.15 per share, which includes a one-time adjustment of $1.5 million related to income tax provisions [3][9] - Pre-provision net revenue return on average assets was 180 basis points, an increase of 10 basis points from the prior quarter and 75 basis points from Q4 2024 [4][9] - Net interest margin expanded to 340 basis points, up 6 basis points from the prior quarter, driven by a reduction in deposit costs [9][10] Business Line Data and Key Metrics Changes - The SBA division contributed significantly to non-interest income, with gains on sale increasing to $2.2 million for the quarter [6][11] - Total funded originations for the year reached $758 million, with net loan growth of $122 million in Q4 [5][9] - Non-interest income increased to $3.4 million, representing 11.4% of total revenue, compared to 4.6% in Q4 2024 [11] Market Data and Key Metrics Changes - Floating-rate loans comprised 38% of the total loan portfolio, up from 23% at the end of 2024 [5] - Average low-cost deposit balances increased by $22 million, or 5%, over the prior quarter and by $86 million, or 21%, versus Q4 2024 [5][9] Company Strategy and Development Direction - The company aims to strengthen credit, improve the funding mix, build non-interest income, and generate high-quality growth while investing in technology and personnel [14][16] - The focus on diversified recurring sources of revenue is yielding positive results, particularly with the growth of the SBA division [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 with a strong position, expecting loan growth of 4%-5% and net interest income in the range of $111 million-$112 million [16] - The company anticipates non-interest income to increase to approximately $11 million-$12 million, with total non-interest expense estimated at $64 million-$65 million [16] Other Important Information - Non-performing assets as a percentage of total assets fell to 49 basis points, down from 56 basis points in the previous quarter [7][11] - The allowance for credit losses stands at 108 basis points of total loans, with coverage of non-performing loans increasing to 188% [12] Q&A Session Summary Question: Loan growth expectations for 2026 - Management indicated that loan growth is expected to pick up in 2026, driven by a balance of payoffs and new originations [19][20] Question: Makeup of the loan pipeline - The loan pipeline is currently 60% commercial and industrial (C&I) loans, with a focus on maintaining strong C&I real estate originations [25] Question: Low-cost deposit growth expectations - While no specific guidance was provided, management expects steady improvement in low-cost deposits, which grew 5% from the previous quarter and 21% year-over-year [29][33] Question: SBA originations in 2026 - Management expects to achieve significant SBA originations in 2026, building on the first full year of the SBA division's operations [39][44] Question: Expense growth outlook for 2026 - Expense growth is expected to be driven by investments in people and processes, with a headcount increase of over 10% in the previous year [49][50]

Fourth Quarter 2025 BWFG Investor Presentation January 29, 2026 Forward Looking Statement Important note regarding forward-looking statements: Statements made in this presentation which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of1995. This includes any statements regarding management's plans, objectives, or goals forfuture operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Su ...

Bankwell Financial Group, Inc. (BWFG) came out with quarterly earnings of $1.15 per share, missing the Zacks Consensus Estimate of $1.2 per share. This compares to earnings of $0.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.17%. A quarter ago, it was expected that this company would post earnings of $1.02 per share when it actually produced earnings of $1.27, delivering a surprise of +24.51%.Over the last four quarter ...

Financial Performance - GAAP net income for Q4 2025 was $9.1 million, or $1.15 per share, down from $10.1 million, or $1.27 per share in Q3 2025[1][3] - Operating net income for Q4 2025 was $10.7 million, or $1.36 per share, reflecting a strong performance despite a one-time tax adjustment[2][4] - Net income for the year ended December 31, 2025, reached $35,198 thousand, compared to $9,770 thousand for the year ended December 31, 2024, marking a significant increase of 260.73%[30] - Net income for the quarter ended December 31, 2025, was $9,144,000, compared to $2,963,000 for the same quarter in 2024, representing a significant increase[33] - Operating diluted EPS for the quarter was $1.36, with an operating net income of $10,691,000[32] Revenue and Income Growth - Total revenues for Q4 2025 were $30.3 million, up from $28.5 million in the previous quarter, primarily due to lower funding costs and increased SBA loan sale gains[14] - Noninterest income for the quarter ended December 31, 2025, totaled $3,376 thousand, an increase of 35.36% from $2,495 thousand in the previous quarter[30] - For the year ended December 31, 2025, net interest income was $99,474 thousand, an increase from $83,665 thousand in 2024[37] Loan and Asset Growth - Net loan growth for the quarter was $121.9 million, resulting in a 5.0% increase compared to the year ended December 31, 2024[9] - Gross loans totaled $2.8 billion at December 31, 2025, reflecting an increase of $134.2 million, or 5.0% year-over-year[19] - Total loans for the quarter ended December 31, 2025, amounted to $2,762,318,000, with a total interest income of $50,723,000[35] - Total earning assets increased to $3,144,798 thousand in 2025, compared to $3,104,352 thousand in 2024, reflecting a growth of approximately 1.3%[37] Asset Quality and Credit Losses - Nonperforming assets as a percentage of total assets improved to 0.49% from 0.56% in the previous quarter, with a decrease of $1.9 million in nonperforming assets[9][17] - The allowance for credit losses on loans was $30.7 million, representing 1.08% of total loans as of December 31, 2025[16] - Provision for credit losses was $616 thousand for the quarter ended December 31, 2025, compared to a credit of $(411) thousand in the previous quarter, indicating a shift in credit quality assessment[30] Capital and Equity - Shareholders' equity increased to $301.5 million as of December 31, 2025, up by $31.0 million compared to December 31, 2024[21] - The bank's total risk-based capital ratio was 12.94%, indicating a well-capitalized status[22] - Total equity as of December 31, 2025, was $301,489,000, reflecting a steady growth trend over the past year[31] Deposits and Funding - Total deposits amounted to $2.8 billion at December 31, 2025, up by $41.9 million, or 1.5% compared to the previous year[19] - Noninterest bearing demand deposits rose to $403.7 million, a 25.4% increase year-over-year[21] - Brokered deposits decreased by $146.3 million, or 20.7%, compared to December 31, 2024[19] Efficiency and Cost Management - The efficiency ratio for Q4 2025 was 50.8%, an improvement from 51.4% in Q3 2025[9] - Interest expense on deposits decreased to $22,388 thousand for the quarter ended December 31, 2025, down from $22,585 thousand in the previous quarter, a decline of 0.87%[30] Interest Rates and Margins - Net Interest Margin for Q4 2025 was 3.40%, an increase of 6 basis points from Q3 2025, driven by lower deposit costs[9][15] - The net interest margin improved to 3.16% in 2025, up from 2.70% in 2024, indicating enhanced profitability from earning assets[37] - The interest rate spread increased to 2.51% for the quarter ended December 31, 2025, compared to 1.73% for the same quarter in 2024[35]

Group 1 - Last year was favorable for many regional banks, with the State Street SPDR S&P Regional Banking ETF (KRE) achieving a low double-digit return when dividends are included [1] - Individual banks that are less widely followed by average investors may present the best opportunities for profits [1]

Group 1 - Bank of Nova Scotia (BNS) has gained approximately 31.2% year-to-date, outperforming the average return of 15.8% for Finance companies [4] - The Zacks Consensus Estimate for BNS' full-year earnings has increased by 1.9% over the past three months, indicating improved analyst sentiment and earnings outlook [3] - BNS belongs to the Banks - Foreign industry, which has an average year-to-date gain of 48.9%, suggesting that BNS is slightly underperforming its industry [6] Group 2 - Bankwell Financial Group, Inc. (BWFG) has returned 52.8% year-to-date, significantly outperforming both the Finance sector and its own industry [4] - The consensus EPS estimate for BWFG has increased by 6.9% over the past three months, reflecting positive analyst sentiment [5] - The Banks - Northeast industry, to which BWFG belongs, has moved up by 7.4% year-to-date, ranking 63 in the Zacks Industry Rank [7]