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 March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________to________ Commission File Number: 001-36448 Bankwell Financial Group, Inc. (Exact Name of Registrant as specified in its Charter) (State or other ju ...

First Quarter 2025 Investor Presentation April 24, 2025 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'splans, objectives, or goals forfuture operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Such forwar ...

Bankwell Financial Group, Inc. (NASDAQ:BWFG) Q1 2025 Earnings Conference Call April 24, 2025 10:00 AM ET Company Participants Courtney Sacchetti - Chief Financial Officer Chris Gruseke - Chief Executive Officer Matt McNeill - President and CBO Conference Call Participants Chris O'Connell - KBW Operator Ladies and gentlemen, thank you for standing by and welcome to the Bankwell Financial Group First Quarter 2025 Earnings Call. All lines have been placed on mute to prevent any background noise. After the spea ...

Bankwell Financial Group (BWFG) Q1 2025 Earnings Call April 24, 2025 10:00 AM ET Company Participants Courtney Sacchetti - Executive VP & CFOChristopher Gruseke - CEOChristopher O'Connell - DirectorMatthew McNeill - Executive VP & Chief Banking Officer Operator Ladies and gentlemen, thank you for standing by, and welcome to the Bankwell Financial Group First Quarter twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will b ...

BANKWELL FINANCIAL GROUP REPORTS OPERATING RESULTS FOR THE FIRST QUARTER, DECLARES SECOND QUARTER DIVIDEND New Canaan, CT – April 23, 2025 – Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $6.9 million, or $0.87 per share for the first quarter of 2025, versus $3.0 million, or $0.37 per share, for the fourth quarter of 2024. The Company's Board of Directors declared a $0.20 per share cash dividend, payable May 20, 2025 to shareholders of record on May 9, 2025. Pre-tax, pre-provision ...

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 ...

Bankwell Financial Group, Inc. (NASDAQ:BWFG) Q4 2024 Earnings Call Transcript January 23, 2025 10:00 AM ET Company Participants Chris Gruseke - President and Chief Executive Officer Courtney Sacchetti - Chief Financial Officer Matt McNeill - Chief Banking Officer Conference Call Participants Christopher O'Connell - KBW Operator Good morning, ladies and gentlemen. And thank you for standing by. My name is Kelvin and I will be your conference operator today. At this time, I would like to welcome everyone to t ...

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].