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].

Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ 2 | --- | --- | |-----------------------------------------------------------------------------------------------------------------------------------------|-------| | | | | PART I – FINANCIAL INFORMATION | | | | | | Item 1. Financial ...

New Canaan, CT – April 24, 2024 – Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $3.8 million, or $0.48 per share for the first quarter of 2024, versus $10.4 million, or $1.33 per share, for the same period in 2023. Pre-tax, pre-provision net revenue ("PPNR") was $8.8 million, or $1.14 per share, for the first quarter of 2024, versus $14.4 million, or $1.89 per share for the same period in 2023. Notes Bankwell Financial Group President and CEO, Christopher R. Gruseke: • PPNR was $ ...

Financial Performance - Total assets as of December 31, 2023, were $3,215,482, a decrease from $3,252,449 in 2022[336] - Net interest income for the year ended December 31, 2023, was $94.5 million, a decrease of $0.3 million compared to 2022[347] - The net interest margin decreased by 80 basis points to 2.98% for the year ended December 31, 2023[347] - Total revenue for the year ended December 31, 2023, was $99,310, compared to $97,783 in 2022[336] - Net income for the year ended December 31, 2023, was $36,663, a decrease from $37,429 in 2022[336] - The Bank's net income for the year ended December 31, 2023, was $36.663 million, a decrease of 2.05% from $37.429 million in 2022[501] - The Bank's total other comprehensive income for the year ended December 31, 2023, was $(1.475) million, compared to $8.372 million in 2022[501] Equity and Assets - Total equity increased to $265,752 as of December 31, 2023, compared to $238,469 in 2022[336] - Commitments to extend credit totaled $333.5 million as of December 31, 2023, down from $561.0 million in 2022[506] - The Bank's loan commitments as of December 31, 2023, amounted to $236.878 million, with $169.358 million due in less than one year[507] Risk Management and Strategy - The company aims for organic growth and strategic acquisitions to enhance its market position[335] - The company has a disciplined focus on risk management as part of its operational strategy[335] - The allowance for credit losses is determined using multiple economic scenarios, incorporating variables such as GDP and interest rates[493] - The Bank's liquidity position is monitored daily, with a detailed liquidity funding policy and contingency funding plan in place[503] - The economic value of equity at risk simulation indicates a sensitivity to interest rate changes, with key assumptions subject to periodic review[512] Interest Rates and Economic Impact - The average yield on total earning assets was 5.86% for the year ended December 31, 2023, compared to 4.64% in 2022[349] - The estimated percent change in net interest income at December 31, 2023, under a 100 basis point rate change is 3.60%[482] - The estimated percent change in economic value at December 31, 2023, under a 200 basis point rate change is (9.40)%[483] - Inflation increases costs of funds and operating overhead, impacting financial performance[515] - Interest rates have a significant effect on the performance of financial institutions compared to general inflation levels[515] - Rising interest rates may decrease the market value of investments and loans held[515] - Increased inflation and interest rates can adversely affect liquidity, earnings, and shareholders' equity[515] - Inflation affects costs related to goods, services, salaries, and occupancy expenses[515]

Risk management | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------------------------|-------|-------|-------|--------|-------|-------|-------|-------|-------|-------|-------|--------| | Three Months Ended September 30, 2022 \nBeginning balance | $ | 331 | $ | 11,480 | $ | 95 | $ | 3,802 | $ | 65 | $ | 15,773 | | Charge-offs | | — | | — | | — | | — | | (8) | | (8) | | Recoveries | | — | | — | | — | | 21 | | — | | 21 | | (Credit) provis ...

| --- | --- | --- | --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|----------------------------------------------|--------------|-------------------------------------------------------------------|-------|---------| | | Net (Loss) on Sale | Unrealized Gain Available for Securities | Net (Loss) | Unrealized Gain on Interest Rate Swaps \n(In thousands) | | Total | | ...

(Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 Commission File Number: 001-36448 | --- | --- | --- | |---------------------------------------------------------------------------------------------------|-------------------|---------------------------------------------| | Securities registered pursuant to Section 12(b) of the Act: \nTitle of Each Class | Trading Symbol(s) | Name of Each Exchange on Which \nRegi ...

| --- | --- | --- | |--------------------------------------|--------------------------------------------------------------------|-------------------------------------------------------------| | Securities \nTitle of Each Class | registered pursuant to Section 12(b) \nTrading Symbol(s) | of the Act: \nName of Each Exchange on Which Registered | | Common Stock, no par value per share | BWFG | NASDAQ Global Market | Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________to________ | --- | --- | |----------------------------------------------------------------------------------------------------------------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________to________ | --- | --- | |---------------------------------------------------------------------------------------------------------------------------- ...