Bankwell Financial Group(US:BWFG)2024-10-28 20:48Financial 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].