Bankwell Financial Group(US:BWFG)2026-01-29 13:02Financial 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]