Financial Performance - GAAP net income for Q1 2025 was $6.9 million, or $0.87 per share, compared to $3.0 million, or $0.37 per share, in Q4 2024[1] - Net income for the quarter ended March 31, 2025, was $6,888, representing a significant increase of 132.5% compared to $2,963 in the previous quarter[30] - Net income for Q1 2025 was $6,888,000, compared to $3,763,000 in Q1 2024, representing an increase of 83.5%[32] - Basic earnings per common share for Q1 2025 was $0.88, up from $0.48 in Q1 2024, reflecting an increase of 83.3%[32] Revenue and Income - Pre-tax, pre-provision net revenue (PPNR) increased by 10.7% to $9.4 million, or $1.22 per share, from $8.5 million, or $1.11 per share, in Q4 2024[2][11] - Total revenues for Q1 2025 were $23.6 million, up from $22.1 million in Q4 2024, driven by improved funding costs and gains on SBA loans[12][14] - Net interest income for the quarter ended March 31, 2025, was $22,066, an increase of 9.2% from $20,199 in the previous quarter[30] - Total noninterest income increased to $1,505 for the quarter ended March 31, 2025, compared to $964 in the previous quarter, reflecting a growth of 56.2%[30] Asset Quality - Nonperforming assets as a percentage of total assets decreased to 0.83% from 1.88% as of December 31, 2024, reflecting improved asset quality[3][16] - Nonperforming loans as a percentage of total loans improved to 1.00% as of March 31, 2025, from 1.97% as of December 31, 2024[19] - Total nonaccrual loans decreased to $26.4 million as of March 31, 2025, from $53.3 million as of December 31, 2024[19] Deposits and Loans - Core deposits increased by $43.4 million, including a $27.7 million growth in non-interest bearing deposits[8] - Total deposits decreased by $37.1 million, or 1.3%, to $2.8 billion as of March 31, 2025, compared to December 31, 2024[19] - Gross loans decreased by $61.0 million, or 2.3%, to $2.6 billion as of March 31, 2025, compared to December 31, 2024[19] Capital and Equity - Shareholders' equity increased by $4.7 million to $275.2 million as of March 31, 2025, primarily due to net income of $6.9 million[21] - The Company’s regulatory capital ratios were all above 'well capitalized' values, with total risk-based capital at 13.22% as of March 31, 2025[22] - Tangible common equity as of March 31, 2025, was $272,625,000, compared to $267,931,000 as of December 31, 2024, an increase of 1.0%[31] Operational Efficiency - The efficiency ratio for Q1 2025 was 59.9%, compared to 56.4% in Q4 2024, indicating a slight increase in operational costs relative to revenues[9] - Interest expense on deposits was $24,772 for the quarter ended March 31, 2025, a decrease of 3.4% from $25,640 in the previous quarter[30] Shareholder Returns - The company declared a cash dividend of $0.20 per share, payable on May 20, 2025[1] - The Company repurchased 29,924 shares at a weighted average price of $30.46 per share during the quarter ended March 31, 2025[22]

Financial Performance - Net income for 2024 was $9,770 thousand, significantly lower than $36,663 thousand in 2023, resulting in basic earnings per share of $1.24 compared to $4.71[218]. - Total revenue for 2024 was $87,000,000, a decrease of 12.3% from $99,310,000 in 2023[229]. - Net income for the year ended December 31, 2024 was $9.8 million, a decrease of $26.9 million, or 73.4%, compared to $36.7 million for the year ended December 31, 2023[254][256]. - Revenues for the year ended December 31, 2024 were $87.0 million, down from $99.3 million in 2023, primarily due to increased interest expense on deposits and lower gains from loan sales[255]. - Net interest income for 2024 was $83,282,000, down from $94,468,000 in 2023, reflecting a decline of 11.8%[229]. - Net interest income for the year ended December 31, 2024 was $83.3 million, a decrease of $11.2 million compared to the previous year, with a net interest margin decrease of 28 basis points to 2.70%[257]. - Net interest income for 2024 was $83.7 million, down from $94.7 million in 2023[268]. - Noninterest income decreased by $1.1 million to $3.7 million in 2024, driven by a decline in gains on SBA loan sales[271]. Asset Quality - Nonperforming loans to total loans increased to 1.97% in 2024 from 1.81% in 2023, reflecting a slight deterioration in asset quality[218]. - The net charge-offs to average loans ratio rose to 0.81% in 2024 from 0.03% in 2023, indicating an increase in loan losses[218]. - Nonperforming assets as a percentage of total assets increased to 1.88% at December 31, 2024, from 1.53% at December 31, 2023[304]. - Total past due loans amounted to $44.1 million as of December 31, 2024, an increase of $22.8 million from $21.3 million in 2023, representing 1.63% of total loans[308]. - The Allowance for Credit Losses on Loans (ACL-Loans) was $29.0 million at December 31, 2024, representing 1.07% of total loans[304]. - The company actively manages asset quality through disciplined underwriting and ongoing monitoring of borrowers' ability to service debt[301]. - The company expects fluctuations in nonperforming assets and potential problem loans in response to changing economic conditions[314]. Capital and Equity - Total assets as of December 31, 2024, were $3,268,476 thousand, up from $3,215,482 thousand in 2023, while total equity increased to $270,520 thousand from $265,752 thousand[218]. - Shareholders' equity grew to $270.5 million as of December 31, 2024, an increase of $4.8 million from the previous year[277]. - The Bank's shareholders' equity rose to $270.5 million as of December 31, 2024, an increase of $4.8 million from the previous year, driven by a net income of $9.8 million[353]. - The Bank's ratio of total common equity tier 1 capital to risk-weighted assets was 11.64% as of December 31, 2024, exceeding the regulatory minimum[354]. Efficiency and Ratios - The efficiency ratio increased to 57.9% in 2024 from 50.8% in 2023, indicating a rise in non-interest expenses relative to operating revenue[218]. - The return on average assets decreased to 0.31% in 2024 from 1.13% in 2023, and return on average common shareholders' equity fell to 3.60% from 14.55%[218]. - Return on average common shareholders' equity for 2024 was 3.60%, significantly lower than 14.55% in 2023[231]. - Efficiency ratio increased to 57.9% in 2024 from 50.8% in 2023, indicating a decline in operational efficiency[231]. Loans and Deposits - Total assets increased to $3.3 billion as of December 31, 2024, compared to $3.2 billion in 2023[276]. - Gross loans remained stable at $2.7 billion for both December 31, 2024, and December 31, 2023[276]. - Deposits rose to $2.8 billion as of December 31, 2024, up from $2.7 billion in 2023[276]. - Total deposits reached $2.79 billion at December 31, 2024, with a weighted average rate of 4.27%, compared to $2.74 billion and 3.59% in 2023[332]. - Time deposits of $100 thousand or more totaled $1.2 billion for both 2024 and 2023, with maturing amounts within 3 months increasing from $317.5 million in 2023 to $421.8 million in 2024[336]. Interest Income and Expense - Interest income for 2024 was $191,994 thousand, an increase from $188,454 thousand in 2023, while interest expense rose to $108,712 thousand from $93,986 thousand[218]. - Interest expense for the year ended December 31, 2024 increased by $14.7 million, or 15.7%, due to higher rates paid on interest-bearing deposits[261]. - The total yield on earning assets increased to 6.09% at December 31, 2024, compared to 5.86% at December 31, 2023, driven by higher yields on loans and securities[260]. Regulatory and Compliance - The company has met all minimum regulatory capital requirements to be considered "well capitalized" as of December 31, 2024[367]. - The Company adopted new credit loss measurement guidance in January 2023, resulting in a $6.4 million increase in the allowance for credit losses[235]. - The Company adopted ASU 2022-02 effective January 1, 2023, which had an immaterial impact on financial reporting[244]. Risk Management - The company remains liability sensitive, indicating more liabilities than assets subject to repricing as market rates change[370]. - The company manages liquidity to ensure adequate sources to fund commitments and honor drafts under standby letters of credit[361]. - The simulation analyses for interest rate risk are updated quarterly to reflect changes in market conditions[365].

January 22, 2025 Fourth Quarter 2024 Investor Presentation 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 of 1995. This includes any statements regarding management's plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Such ...

Financial Data and Key Metrics Changes - The earnings release for Q4 2024 is available on the company's website, indicating a structured approach to financial reporting [3]. - The call includes forward-looking statements and references to non-GAAP financial measures, highlighting the company's focus on transparency [4]. Business Line Data and Key Metrics Changes - Specific details regarding the performance of various business lines were not provided in the available content. Market Data and Key Metrics Changes - No specific market data or key metrics changes were mentioned in the provided content. Company Strategy and Development Direction and Industry Competition - The CEO, Chris Gruseke, emphasized the importance of the earnings call and the presence of key executives, indicating a collaborative approach to discussing the company's strategy [5]. Management's Comments on Operating Environment and Future Outlook - Management has not yet provided comments on the operating environment or future outlook in the available content. Other Important Information - The call is structured to include a question-and-answer session, allowing for further engagement with analysts and investors [1]. Q&A Session Summary - No specific questions or answers from the Q&A session were included in the provided content.

Financial Performance - Bankwell Financial Group reported GAAP net income of $2.5 million, or $0.32 per share for Q4 2024, an increase from $1.9 million, or $0.24 per share in Q3 2024[1]. - Total revenues for Q4 2024 were $21.2 million, down from $23.4 million in Q4 2023, primarily due to lower loan fees[18]. - Net income for the quarter was $2,507 thousand, reflecting an increase of 30.1% from $1,926 thousand in the prior quarter[32]. - Basic earnings per common share for the quarter ended December 31, 2024, is $0.32, down from $1.09 in the same quarter of 2023[34]. - For the year ended December 31, 2024, net interest income was $83,665 thousand, compared to $94,675 thousand for the year ended December 31, 2023[38]. Revenue and Income Sources - Bankwell anticipates $93-$95 million in net interest income and $7-$8 million in noninterest income for the full year 2025[6]. - Net interest income for the quarter ended December 31, 2024, was $20,199 thousand, a decrease of 4.7% compared to $22,245 thousand in the same quarter of the previous year[32]. - The average yield on total earning assets increased from 5.86% in 2023 to 6.09% in 2024[38]. - Commercial real estate loans generated an interest income of $112,804 thousand with a yield of 5.82% in 2024, compared to $109,110 thousand and 5.57% in 2023[38]. Asset and Liability Management - Total assets increased by $53.1 million, or 1.7%, to $3.3 billion as of December 31, 2024, compared to December 31, 2023[20]. - Total deposits increased by $50.8 million, or 1.9%, reaching $2.8 billion as of December 31, 2024, compared to December 31, 2023[20]. - Brokered deposits decreased by $78.4 million in Q4 2024, totaling a decline of $246.8 million since December 31, 2023[10]. - Total loans for the quarter ended December 31, 2024, amount to $2,661,094,000, with a total interest yield of 6.30%[36]. Nonperforming Assets and Credit Losses - The allowance for credit losses on loans was $29.0 million as of December 31, 2024, compared to $27.9 million a year earlier[15]. - Nonperforming assets as a percentage of total assets increased to 1.88% as of December 31, 2024, from 1.53% a year prior[17]. - Provision for credit losses was $4,458 thousand for the quarter, compared to a credit of $(960) thousand in the same quarter last year, indicating a significant increase in provisions[32]. - Nonperforming loans as a percentage of total loans decreased to 1.97% as of December 31, 2024, from 2.42% as of September 30, 2024[21]. Shareholder Information - Shareholders' equity increased by $4.3 million to $270.1 million as of December 31, 2024, primarily due to net income of $9.3 million for the year[22]. - The company repurchased 85,990 shares at a weighted average price of $24.82 per share during the year ended December 31, 2024[23]. - The company declared dividends of $0.20 per common share for the quarter, consistent with the previous quarter's dividend[32]. - Total equity as of December 31, 2024, is $270,063,000, an increase from $267,926,000 as of September 30, 2024[33]. Operational Efficiency - The company recorded total noninterest expense of $13.2 million in Q4 2024, a 2.9% increase compared to Q3 2024[18]. - Noninterest expense totaled $13,243 thousand for the quarter, an increase of 2.9% from $12,864 thousand in the same quarter of the previous year[32]. - The efficiency ratio and other non-GAAP financial measures are used to assess financial performance and trends[29]. Future Outlook - The company will host a conference call on January 23, 2025, to discuss financial results and business outlook[24].

Financial Performance - For the three months ended September 30, 2024, net interest income was $20.7 million, a decrease of $2.0 million or 8.7% compared to the same period in 2023[209]. - Net income available to common shareholders for the three months ended September 30, 2024 was $1.9 million, or $0.24 per diluted share, down from $9.8 million, or $1.25 per diluted share in 2023[210]. - Returns on average shareholders' equity for the three months ended September 30, 2024 were 2.83%, significantly lower than 15.19% for the same period in 2023[211]. - FTE net interest income for the nine months ended September 30, 2024 was $63.3 million, down from $72.4 million in 2023, reflecting a decrease of 12.7%[213]. - Noninterest income for the three months ended September 30, 2024, increased by $370 thousand to $1,156 million compared to $786 million in the same period of 2023[226]. - Noninterest income decreased by $959 thousand to $2,754 million for the nine months ended September 30, 2024, compared to $3,713 million in the same period of 2023[227]. Interest and Loan Metrics - Interest expense for the three months ended September 30, 2024 increased by $1.9 million compared to the same period in 2023, driven by higher rates on interest-bearing deposits[215]. - Total loans averaged $2.66 billion for the three months ended September 30, 2024, with a yield of 6.40%[217]. - The interest rate spread for the three months ended September 30, 2024 was 1.83%, down from 2.04% in the same period in 2023[217]. - Total loans averaged $2,676,449 million with a yield of 6.38% for the nine months ended September 30, 2024, compared to $2,760,643 million and a yield of 6.02% for the same period in 2023[1]. - The interest rate spread for the nine months ended September 30, 2024, was 1.83%, down from 2.31% in the same period of 2023[1]. Asset and Liability Management - Total assets as of September 30, 2024 were $3.16 billion, a decrease from $3.27 billion as of September 30, 2023[217]. - Total assets decreased to $3,187,377 million as of September 30, 2024, from $3,242,099 million a year earlier[1]. - Total interest-bearing liabilities averaged $2,517,284 million with an interest expense of $81,068 million for the nine months ended September 30, 2024, compared to $2,578,855 million and $66,837 million in the same period of 2023[1]. - Total deposits decreased by $48.6 million or 1.8% to $2.7 billion as of September 30, 2024, compared to December 31, 2023[232]. - Brokered certificates of deposits totaled $730.6 million at September 30, 2024, down from $860.5 million at December 31, 2023[260]. - FDIC insured deposits were $2.0 billion, representing 75% of total deposits as of September 30, 2024[260]. Credit Quality and Loss Provisions - Provision for credit losses increased to $6.3 million for the three months ended September 30, 2024, compared to a credit of $1.6 million for the same period in 2023[224]. - Nonperforming assets totaled $65.5 million, representing 2.07% of total assets, an increase from $49.2 million and 1.53% at December 31, 2023[246]. - Nonaccrual loans reached $65.5 million at September 30, 2024, compared to $49.2 million at December 31, 2023, primarily due to a $27.1 million commercial real estate multi-family loan placed on nonaccrual[246]. - The Allowance for Credit Losses (ACL) on loans was $27.8 million, or 1.06% of total gross loans, as of September 30, 2024, compared to $27.9 million, or 1.03% at December 31, 2023[253]. - The allocation of ACL-Loans at September 30, 2024, included $21,978 thousand for commercial real estate, representing 79.19% of total ACL-Loans[254]. Strategic Initiatives and Market Position - The company aims for organic growth and strategic acquisitions to enhance its market position[206]. - The company actively manages asset quality through disciplined underwriting and portfolio monitoring, with a focus on early problem recognition[243]. - The Directors Loan Committee oversees credit risk management, ensuring adherence to prudent underwriting standards[243]. Economic and Regulatory Environment - The Bank's Common Equity Tier 1 capital ratio was 11.80% as of September 30, 2024, exceeding the regulatory minimum requirements[268]. - The estimated percentage change in net interest income at risk for a +200 basis point shift in rates was -2.20% as of September 30, 2024[275]. - The economic value of equity at risk showed a -10.80% change for a +300 basis point shift in rates as of September 30, 2024[278]. - Interest rate risk management is identified as the primary market risk for the company[280]. - Financial statements are prepared in accordance with GAAP, not accounting for inflation's impact on purchasing power[281]. - Inflation increases costs of funds and operating overhead, significantly affecting financial institutions compared to industrial companies[282]. - Rising inflation and interest rates generally decrease the market value of investments and loans, adversely affecting liquidity and earnings[282].

Financial Data and Key Metrics Changes - The company reported GAAP fully diluted earnings per share (EPS) of $0.24, negatively impacted by an $8.2 million charge-off against an office loan, which reduced the EPS by approximately $0.79 [6][18] - Pre-provision net revenue (PPNR) was $9 million, down slightly quarter-over-quarter, representing 113 basis points of PPNR return on average assets [14] - Reported net interest margin (NIM) for the third quarter was 272 basis points, a 3 basis point reduction relative to the linked quarter [14] Business Line Data and Key Metrics Changes - The office portfolio exposure was reduced to $166 million, approximately 6% of the total portfolio, with the majority having credit enhancements [11] - Non-interest income was $1.2 million, benefiting slightly from higher SBA gain on sale revenue and improved trends in service charges [16] - The company anticipates $500 million in loans to reprice or mature over the next 12 months, which could benefit NIM by an additional 15 to 20 basis points [15] Market Data and Key Metrics Changes - The company has made significant strides in improving the quality and diversity of its deposit base, reducing broker deposits by $168 million since the beginning of the year [8] - The average deposit for the Bankwell Direct pilot was $60,000, costing just 11 basis points in marketing costs [41] Company Strategy and Development Direction - The company aims to embrace innovation and foster an entrepreneurial culture, focusing on technology and talent as keys to differentiation [20][22] - Strategic initiatives include the launch of Bankwell Direct, a national consumer digital bank, and a small business growth loan program to support local businesses [41][42] - The company is focused on providing an elite customer experience and has initiated a new customer experience program [25] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about future earnings growth due to balance sheet positioning and potential further rate cuts by the Fed [20] - The company expects meaningful margin expansion into 2025 as short-term rates move lower, largely due to significant CD maturities [49] - Management emphasized the importance of maintaining a stable asset base while improving profitability and reducing broker deposits [48] Other Important Information - The company repurchased 9,670 shares of Bankwell stock at an average price of $23.86 during the third quarter [18] - The board has authorized a new 250,000 share repurchase program [18] Q&A Session Summary Question: What are the average rates for loans repricing over the next year? - The average rates for loans repricing are approximately in the mid-6s [53] Question: What is the spot margin for September? - The spot margin for September is skewed due to unusual items, but the estimated NIM for the fourth quarter is around 2.70 [54] Question: What are the expectations for loan growth from new initiatives? - The company expects relatively flat balance sheet growth, with modest growth not necessarily attributable to SBA loans [61] Question: What is the long-term target for the CET1 ratio? - The long-term target for the consolidated CET1 position is to be north of 11% by the end of 2026 [65] Question: What is the expected tax rate going forward? - The company is striving for a tax rate of around 24.5% under a more normal income profile [79]

Financial Performance - Bankwell Financial Group reported GAAP net income of $1.9 million, or $0.24 per share for Q3 2024, up from $1.1 million, or $0.14 per share in Q2 2024[1]. - Total revenues for Q3 2024 were $21.9 million, down from $23.5 million in Q3 2023, primarily due to increased interest expense on deposits[10]. - Net income for Q3 2024 was $1,926,000, compared to $1,118,000 in Q2 2024, indicating a growth of 72.5%[33]. - Basic earnings per share for Q3 2024 was $0.24, up from $0.14 in Q2 2024, representing a growth of 71.4%[33]. Revenue and Income Analysis - Pre-tax, pre-provision net revenue (PPNR) for Q3 2024 was $9.0 million, a decrease of 7% from $9.7 million in Q2 2024[2]. - Total interest and dividend income for Q3 2024 was $48,191,000, an increase from $47,679,000 in Q2 2024, representing a growth of 1.1%[33]. - Net interest income after provision for credit losses was $14,421,000 for Q3 2024, compared to $13,036,000 in Q2 2024, reflecting an increase of 10.6%[33]. - Noninterest income totaled $1,156,000 in Q3 2024, up from $683,000 in Q2 2024, marking a significant increase of 69.2%[33]. Loan and Asset Management - The allowance for credit losses on loans was $27.8 million as of September 30, 2024, representing 1.06% of total loans[13]. - Total loans decreased to $2.623 billion at September 30, 2024, a decline of $33.98 million, or 1.3%, compared to the previous quarter[19]. - Nonperforming loans as a percentage of total loans increased to 2.50% at September 30, 2024, from 2.12% at June 30, 2024[17]. - Total past due loans to total loans ratio increased to 2.48% at September 30, 2024, compared to 0.84% at June 30, 2024[17]. Deposit and Funding Trends - Brokered deposits decreased by $24.2 million in Q3 2024, totaling a decline of $168.5 million since December 31, 2023[5]. - Deposits totaled $2.7 billion at September 30, 2024, a decrease of $48.6 million, or 1.8%, compared to December 31, 2023, with brokered deposits decreasing by $168.5 million, or 17.7%[18]. - Interest expense on deposits rose to $25,579,000 in Q3 2024 from $24,677,000 in Q2 2024, an increase of 3.6%[33]. Capital and Equity Position - Shareholders' equity increased to $267.9 million as of September 30, 2024, up by $2.2 million compared to December 31, 2023, primarily due to net income of $6.8 million for the nine months ended September 30, 2024[20]. - The capital position remained stable with total risk-based capital at 12.83% and common-equity tier 1 capital at 11.80% as of September 30, 2024[21]. - The Company announced a new share repurchase plan authorizing the buyback of up to 250,000 shares of common stock[3]. Expense Management - Total noninterest expense increased to $12,865,000 in Q3 2024 from $12,245,000 in Q2 2024, which is an increase of 5.1%[33]. - Provision for credit losses was $6,296,000 in Q3 2024, down from $8,183,000 in Q2 2024, indicating a decrease of 23.0%[33]. Asset Overview - Assets totaled $3.2 billion at September 30, 2024, a decrease of $54.4 million, or 1.7%, compared to December 31, 2023, while gross loans decreased by $95.4 million, or 3.5%[18]. - The total investment securities increased to $145,900 thousand, up from $138,000 thousand, representing a growth of 5.2%[30]. - The total earning assets for the quarter were $3,070,362,000, with a yield of 6.16%, up from $3,188,090,000 and a yield of 5.93% in the previous year[37].

Financial Performance - Revenues for Q2 2024 were $21.9 million, a decrease of 13.8% from $25.4 million in Q2 2023[189] - Net income available to common shareholders for Q2 2024 was $1.1 million, or $0.14 per diluted share, down from $8.0 million, or $1.02 per diluted share in Q2 2023[190] - Return on average shareholders' equity for Q2 2024 was 1.65%, significantly lower than 12.91% in Q2 2023[191] - FTE net interest income for Q2 2024 was $21.3 million, down from $24.1 million in Q2 2023[193] - Noninterest income for the three months ended June 30, 2024, totaled $683 thousand, a decrease of 51.2% compared to $1,401 thousand in 2023[204] - Noninterest income decreased by $1.3 million or 45.4% for the six months ended June 30, 2024, primarily due to lower gains from loan sales[205] - Total noninterest expense decreased by $0.4 million or 3.1% for the three months ended June 30, 2024, mainly driven by a reduction in FDIC insurance costs[207] Interest Income and Expenses - FTE interest income for Q2 2024 increased by $1.1 million, or 2.3%, to $47.7 million compared to Q2 2023[193] - Interest expense for Q2 2024 increased by $3.9 million compared to Q2 2023, driven by higher rates on interest-bearing deposits[194] - The interest rate spread for Q2 2024 was 1.82%, down from 2.36% in Q2 2023[196] - The interest rate spread for the six months ended June 30, 2024, was 1.83%, down from 2.49% in the same period in 2023[198] - The total change in interest and dividend income for the three months ended June 30, 2024, was $1,091 thousand, compared to $5,177 thousand in 2023[200] Loan and Asset Management - Total loans averaged $2.675 billion in Q2 2024, with a yield of 6.37%, compared to $2.786 billion and a yield of 6.05% in Q2 2023[196] - Total loans for the six months ended June 30, 2024, were $2,682,938 thousand, with a net interest income of $42,484 thousand, compared to $2,745,677 thousand and $49,636 thousand for the same period in 2023[198] - The total assets as of June 30, 2024, were $3,200,825 thousand, compared to $3,242,099 thousand in 2023[198] - Total loans decreased by $61.4 million to $2.7 billion as of June 30, 2024, compared to December 31, 2023[212] - The average balance of commercial real estate loans was $1,911,896 thousand, with an interest income of $56,295 thousand, yielding 5.82% for the six months ended June 30, 2024[198] - The average balance of consumer loans increased to $41,150 thousand, generating an interest income of $1,442 thousand, yielding 7.05% for the six months ended June 30, 2024[198] Credit Quality and Loss Provisions - The provision for credit losses for the three months ended June 30, 2024, was $8.2 million, an increase from $2.6 million in the same period in 2023[202] - The allowance for credit losses on loans (ACL-Loans) was $36.1 million, representing 1.36% of total gross loans, up from 1.03% at December 31, 2023[226] - The provision for credit losses on loans was $8.37 million for the period, compared to $2.68 million in the previous period[226] - Nonaccrual loans totaled $56.2 million as of June 30, 2024, an increase from $49.2 million at December 31, 2023, primarily due to a $13.9 million commercial real estate loan[221] - The total past due loans to total gross loans ratio was 0.84% as of June 30, 2024, compared to 0.78% at December 31, 2023[221] Capital and Equity - Shareholders' equity increased by $1.2 million to $267.0 million as of June 30, 2024, primarily due to net income of $4.9 million for the six months ended June 30, 2024[211] - The Bank's Common Equity Tier 1 capital ratio was 11.67% as of June 30, 2024, exceeding the regulatory minimum requirements[239] Deposits and Funding - Total deposits decreased by $74.4 million to $2.66 billion as of June 30, 2024, compared to $2.74 billion at December 31, 2023[230] - FDIC insured deposits amounted to $1.94 billion, representing 73% of total deposits as of June 30, 2024[231] - Time deposits of $100 thousand or more totaled $1.16 billion as of June 30, 2024, down from $1.20 billion at December 31, 2023[232] - Brokered certificates of deposits totaled $755.5 million as of June 30, 2024, down from $860.5 million at December 31, 2023[231] Risk Management and Economic Factors - Interest rate risk management is identified as the primary market risk for the company[249] - The company anticipates that inflation and rising interest rates may decrease the market value of investments and loans held[251] - Inflation affects costs related to salaries, benefits, and occupancy expenses, which can adversely impact liquidity and earnings[251] - The company’s management discusses interest rate risk in detail in the financial condition and results of operations section[249] - The sensitivity of core deposits to interest rate fluctuations is a significant factor in income simulation results[248] - The economic value of equity at risk is estimated to decline by 7.50% with a 200 basis point increase in rates as of June 30, 2024[247] - Estimated net interest income at risk for a 200 basis point increase in rates is projected to decline by 4.00% as of June 30, 2024[244] Strategic Goals - The company aims for organic growth and strategic acquisitions to enhance its market position[186] - The company actively manages asset quality through disciplined underwriting and portfolio monitoring, with the Board of Directors overseeing credit risk management[219]

Financial Performance - Bankwell Financial Group reported GAAP net income of $1.1 million, or $0.14 per share for Q2 2024, a decrease from $8.0 million, or $1.02 per share in Q2 2023[1]. - Total revenues for Q2 2024 were $21.9 million, compared to $25.4 million in Q2 2023, primarily due to increased interest expenses and lower gains from loan sales[14]. - The company reported a net income of $1,118 million for the quarter ended June 30, 2024, a significant drop from $3,763 million in the previous quarter[59]. - Net income for the quarter ended June 30, 2024, was $1,118 million, a decrease from $7,983 million in the same quarter last year[71]. - Basic earnings per common share for the quarter ended June 30, 2024, was $0.14, down from $0.48 in the previous quarter, indicating lower earnings per share[59]. Revenue and Income Analysis - Pre-tax, pre-provision net revenue (PPNR) was $9.7 million for Q2 2024, down from $12.8 million in Q2 2023[1]. - Total noninterest income for the quarter ended June 30, 2024, was $683 million, a decrease of 25.4% compared to the previous quarter and a 51.2% decrease year-over-year[53]. - For the six months ended June 30, 2024, total noninterest income was $1.598 billion, down 45.4% from $2.927 billion in the same period last year[53]. - Noninterest income decreased by $0.7 million for the quarter ended June 30, 2024, compared to the same quarter in 2023, primarily due to lower gains from fewer SBA loan sales[73]. Loan and Credit Quality - The provision for credit losses was $8.2 million for Q2 2024, with $6.6 million related to a specific reserve on an $8.7 million commercial business credit[29]. - Nonaccrual loans increased by $7.0 million to $56.2 million as of June 30, 2024, primarily due to a $13.9 million commercial real estate loan[41]. - Nonperforming loans as a percentage of total loans increased to 2.12% as of June 30, 2024, from 1.74% in the previous quarter, signaling potential asset quality concerns[62]. - The company reported total nonaccrual loans of $56,205 million as of June 30, 2024, an increase from $46,543 million in the previous quarter, raising concerns about loan performance[62]. - Provision for credit losses was $8,183 million for the quarter ended June 30, 2024, compared to a credit of $960 million in the same quarter last year[71]. Asset and Liability Management - Total assets decreased to $3.14 billion as of June 30, 2024, down from $3.22 billion at December 31, 2023, representing a decline of 3.5%[37]. - Total gross loans decreased by $61.4 million, or 2.3%, to $2.7 billion compared to December 31, 2023[29]. - Deposits totaled $2.7 billion, a decrease of $74.4 million, or 2.7%, compared to December 31, 2023[34]. - Total loans amounted to $2.66 billion, a decrease of $61.4 million, or 2.3%, compared to December 31, 2023[42]. - Total deposits were $2.66 billion at June 30, 2024, a decrease of $74.4 million, or 2.7%, from December 31, 2023[43]. Cost Management and Efficiency - Noninterest expense for the quarter ended June 30, 2024, decreased by $0.4 million to $12.2 million compared to the same quarter in 2023[45]. - Total noninterest expense for the quarter ended June 30, 2024, was $12,245 million, a decrease from $13,297 million in the previous quarter, reflecting cost-cutting measures[59]. - The efficiency ratio improved to 55.9% for the quarter ended June 30, 2024, compared to 60.3% in the previous quarter, indicating better cost management[60]. - The efficiency ratio was adjusted to better reflect operating expenses in relation to core operating revenue, excluding certain one-time items[39]. Dividends and Shareholder Returns - The company declared a cash dividend of $0.20 per share, payable on August 23, 2024[11]. - The dividend payout ratio increased to 142.86% for the quarter ended June 30, 2024, compared to 41.67% in the previous quarter, suggesting a higher distribution of earnings[60]. Future Outlook - The company anticipates continued competitive pressures and economic uncertainties affecting future performance[36].