Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported record GAAP net income for the fourth quarter and year ended 2021. For the fourth quarter of 2021 net income totaled $7.8 million, or $0.99 per share, versus $0.3 million, or $0.04 per share, for the same period in 2020. For the year ended 2021 net income totaled $26.6 million, or $3.36 per share, versus $5.9 million, or $0.75 per share, for the same period in 2020.

The Company's Board of Directors declared a $0.20 per share cash dividend, payable February 24, 2022 to shareholders of record on February 14, 2022, representing an 11% increase when compared to the prior quarter’s dividend.

We recommend reading this earnings release in conjunction with the Fourth Quarter 2021 Investor Presentation, located at http://investor.mybankwell.com/Presentations and included as an exhibit to our January 26, 2022 Current Report on Form 8-K.

Notes Bankwell Financial Group President and CEO, Christopher R. Gruseke:

“We are proud to announce record performance for the fourth quarter and full year of 2021. In addition to generating a Return on Average Equity of 14% for the year, the Company made significant strides in all aspects of its business. While originating approximately $800 million in loans, we also continued to diversify our asset base. Core deposits grew by 31.7%, year over year, and non-interest bearing deposits increased by 47.6% over the same period.

“I offer my heartfelt gratitude and sincere congratulations to every member of our team. Their hard work and commitment, during a time of historic disruption, has made these impressive achievements possible.

“We enter the year ahead with confidence and momentum and look forward to another outstanding year. Loan and deposit pipelines remain strong. Inclusive of four expected rate hikes by the Federal Reserve, we expect net interest income to grow by 12-14% in 2022.”

Fourth Quarter 2021 Highlights:

  • Return on average assets was 1.32% and return on average equity was 15.44% for the quarter ended December 31, 2021.
  • The net interest margin improved to 3.43% for the quarter ended December 31, 2021 and 3.17% for the year ended December 31, 2021.
  • Total gross loans were $1.9 billion, growing $303.9 million excluding Paycheck Protection Program ("PPP") loans, or 19.1%, compared to December 31, 2020. On a quarterly basis, loans grew $71.7 million, or 3.9% compared to September 30, 2021.
  • Gains from loan sales totaled $0.4 million and $2.7 million for the quarter and year ended December 31, 2021, respectively.
  • Total deposits were $2.1 billion compared to $1.8 billion at December 31, 2020.
  • Noninterest bearing deposits increased by $128.7 million, or 47.6% compared to December 31, 2020.
  • The percentage of noninterest bearing deposits to total deposits increased to 18.8% compared to 14.8% at December 31, 2020.
  • The cost of interest bearing deposits decreased approximately 35 basis points to 0.54% for the quarter ended December 31, 2021 when compared to the quarter ended December 31, 2020.
  • Investment securities totaled $108.4 million and represent 4.4% of total assets.
  • Tangible book value per share rose to $26.19 compared to $22.43 at December 31, 2020.
  • Shares issued and outstanding were 7,803,166, reflecting repurchases of 59,338 shares of common stock at a weighted average price of $31.29 during the quarter ended December 31, 2021.
  • The Company issued a 3.25% fixed-to-floating rate subordinated note due 2031 in the principal amount of $35.0 million. Part of the proceeds were used to repay $15.5 million of previously issued subordinated notes.

Earnings and Performance

Revenues (net interest income plus noninterest income) for the quarter ended December 31, 2021 were $19.8 million, versus $14.9 million for the quarter ended December 31, 2020. Revenues for the year ended December 31, 2021 were $73.5 million, versus $57.7 million for the year ended December 31, 2020. The increase was primarily attributable to lower interest expense on deposits, an increase in interest and fees on loans due to loan growth and from the resumption of loan sales.

Net income for the quarter ended December 31, 2021 was $7.8 million, versus $0.3 million for the quarter ended December 31, 2020. Net income for the year ended December 31, 2021 was $26.6 million, versus $5.9 million for the year ended December 31, 2020. The increase in net income was primarily impacted by the aforementioned increases in revenues, a decrease in noninterest expense, and a decrease in the provision for loan losses resulting from lower loan loss reserves in 2021 when compared to 2020, which saw a large increase in reserves due to the COVID-19 Pandemic.

Basic and diluted earnings per share were $1.00 and $0.99, respectively, for the quarter ended December 31, 2021 compared to basic and diluted earnings per share of $0.04 each for the quarter ended December 31, 2020. Basic and diluted earnings per share were $3.38 and $3.36, respectively, for the year ended December 31, 2021 compared to basic and diluted earnings per share of $0.75 each for the year ended December 31, 2020.

The net interest margin (fully taxable equivalent basis) for the quarters ended December 31, 2021 and December 31, 2020 was 3.43% and 2.66%, respectively. The net interest margin (fully taxable equivalent basis) for the years ended December 31, 2021 and December 31, 2020 was 3.17% and 2.77%, respectively. The increase in the net interest margin was due to lower interest expense from a decrease in rates on interest bearing deposits and a greater proportion of noninterest bearing deposits.

Financial Condition

Assets totaled $2.46 billion at December 31, 2021, compared to assets of $2.25 billion at December 31, 2020. The increase in assets was primarily due to loan growth, partially offset by a decrease in excess liquidity. Gross loans totaled $1.9 billion at December 31, 2021, an increase of $269.3 million compared to December 31, 2020. Excluding PPP loans, gross loans increased by $303.9 million at December 31, 2021 when compared to December 31, 2020. Deposits totaled $2.1 billion at December 31, 2021, compared to deposits of $1.8 billion at December 31, 2020.

Capital

Shareholders’ equity totaled $202.0 million as of December 31, 2021, an increase of $25.4 million compared to December 31, 2020, primarily a result of (i) net income of $26.6 million for the year ended December 31, 2021 and (ii) a $7.0 million favorable impact to accumulated other comprehensive income driven by fair value marks related to hedge positions involving interest rate swaps. The Company's interest rate swaps are used to hedge interest rate risk. The Company's current interest rate swap positions will cause a decrease to other comprehensive income in a falling interest rate environment and an increase in a rising interest rate environment. The increase in Shareholders’ equity was partially offset by dividends paid of $5.0 million and common stock repurchases of $5.1 million.

About Bankwell Financial Group

Bankwell is a commercial bank that serves the banking needs of residents and businesses throughout Fairfield and New Haven Counties, Connecticut. For more information about this press release, interested parties may contact Christopher R. Gruseke, President and Chief Executive Officer or Penko Ivanov, Executive Vice President and Chief Financial Officer of Bankwell Financial Group at (203) 652-0166.

For more information, visit www.mybankwell.com.

This press release may contain certain forward-looking statements about the Company. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include, but are not limited to, increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the securities markets, uncertain impacts of, or additional changes in, monetary, fiscal or tax policy to address the impact of COVID-19, prolonged measures to contain the spread of COVID-19 or premature easing of such containment measures, either of which could further exacerbate the effects on the Company’s business and results of operations, and legislative and regulatory changes that could adversely affect the business in which the Company and its subsidiaries are engaged.

Non-GAAP Financial Measures

In addition to evaluating the Company's financial performance in accordance with U.S. generally accepted accounting principles ("GAAP"), management may evaluate certain non-GAAP financial measures, such as the efficiency ratio. A computation and reconciliation of certain non-GAAP financial measures used for these purposes is contained in the accompanying Reconciliation of GAAP to Non-GAAP Measures tables. We believe that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends and financial position. For example, the Company believes that the efficiency ratio is useful in the assessment of financial performance, including noninterest expense control. The Company believes that tangible common equity, tangible book value per share, and return on average tangible common equity are useful to evaluate the relative strength of the Company's performance and capital position. We utilize these measures for internal planning and forecasting purposes. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure.

 

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS (unaudited)

(Dollars in thousands)

 

 

December 31, 2021

 

September 30, 2021

 

June 30, 2021

 

March 31, 2021

 

December 31, 2020

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

291,598

 

 

$

169,417

 

 

$

297,851

 

 

$

351,194

 

 

$

405,340

 

Federal funds sold

 

53,084

 

 

 

8,097

 

 

 

4,036

 

 

 

10,811

 

 

 

4,258

 

Cash and cash equivalents

 

344,682

 

 

 

177,514

 

 

 

301,887

 

 

 

362,005

 

 

 

409,598

 

 

 

 

 

 

 

 

 

 

 

Investment securities

 

 

 

 

 

 

 

 

 

Marketable equity securities, at fair value

 

2,168

 

 

 

2,185

 

 

 

2,192

 

 

 

2,178

 

 

 

2,207

 

Available for sale investment securities, at fair value

 

90,198

 

 

 

87,565

 

 

 

90,983

 

 

 

83,218

 

 

 

88,605

 

Held to maturity investment securities, at amortized cost

 

16,043

 

 

 

16,107

 

 

 

16,166

 

 

 

16,225

 

 

 

16,078

 

Total investment securities

 

108,409

 

 

 

105,857

 

 

 

109,341

 

 

 

101,621

 

 

 

106,890

 

Loans receivable (net of allowance for loan losses of $16,902, $16,803, $16,672, $20,545, and $21,009 at December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively)

 

1,875,167

 

 

 

1,805,217

 

 

 

1,719,274

 

 

 

1,650,127

 

 

 

1,601,672

 

Accrued interest receivable

 

7,512

 

 

 

6,911

 

 

 

6,661

 

 

 

7,306

 

 

 

6,579

 

Federal Home Loan Bank stock, at cost

 

2,814

 

 

 

3,632

 

 

 

3,844

 

 

 

6,446

 

 

 

7,860

 

Premises and equipment, net

 

25,588

 

 

 

35,118

 

 

 

33,916

 

 

 

33,386

 

 

 

21,762

 

Bank-owned life insurance

 

49,174

 

 

 

48,903

 

 

 

48,632

 

 

 

42,881

 

 

 

42,651

 

Goodwill

 

2,589

 

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

Other intangible assets

 

 

 

 

48

 

 

 

58

 

 

 

67

 

 

 

76

 

Deferred income taxes, net

 

7,621

 

 

 

7,718

 

 

 

8,208

 

 

 

8,908

 

 

 

11,300

 

Other assets

 

32,708

 

 

 

33,181

 

 

 

35,415

 

 

 

29,131

 

 

 

42,770

 

Total assets

$

2,456,264

 

 

$

2,226,688

 

 

$

2,269,825

 

 

$

2,244,467

 

 

$

2,253,747

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

Noninterest bearing deposits

$

398,956

 

 

$

338,705

 

 

$

328,473

 

 

$

280,947

 

 

$

270,235

 

Interest bearing deposits

 

1,725,042

 

 

 

1,544,118

 

 

 

1,610,829

 

 

 

1,578,861

 

 

 

1,557,081

 

Total deposits

 

2,123,998

 

 

 

1,882,823

 

 

 

1,939,302

 

 

 

1,859,808

 

 

 

1,827,316

 

 

 

 

 

 

 

 

 

 

 

Advances from the Federal Home Loan Bank

 

50,000

 

 

 

80,000

 

 

 

75,000

 

 

 

125,000

 

 

 

175,000

 

Subordinated debentures

 

34,441

 

 

 

15,374

 

 

 

15,366

 

 

 

25,271

 

 

 

25,258

 

Accrued expenses and other liabilities

 

45,838

 

 

 

52,314

 

 

 

49,362

 

 

 

46,445

 

 

 

49,571

 

Total liabilities

 

2,254,277

 

 

 

2,030,511

 

 

 

2,079,030

 

 

 

2,056,524

 

 

 

2,077,145

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

 

 

Common stock, no par value

 

118,148

 

 

 

119,588

 

 

 

120,451

 

 

 

120,398

 

 

 

121,338

 

Retained earnings

 

92,400

 

 

 

85,992

 

 

 

80,543

 

 

 

75,418

 

 

 

70,839

 

Accumulated other comprehensive loss

 

(8,561

)

 

 

(9,403

)

 

 

(10,199

)

 

 

(7,873

)

 

 

(15,575

)

Total shareholders’ equity

 

201,987

 

 

 

196,177

 

 

 

190,795

 

 

 

187,943

 

 

 

176,602

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

$

2,456,264

 

 

$

2,226,688

 

 

$

2,269,825

 

 

$

2,244,467

 

 

$

2,253,747

 

 

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

(Dollars in thousands, except share data)

 

 

For the Quarter Ended

 

For the Year Ended

 

December 31, 2021

 

September 30, 2021

 

June 30, 2021

 

March 31, 2021

 

December 31, 2020

 

December 31, 2021

 

December 31, 2020

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

$

21,081

 

 

$

19,795

 

$

19,266

 

 

$

17,900

 

 

$

18,194

 

$

78,042

 

 

$

73,665

Interest and dividends on securities

 

722

 

 

 

731

 

 

736

 

 

 

769

 

 

 

835

 

 

2,958

 

 

 

3,237

Interest on cash and cash equivalents

 

90

 

 

 

88

 

 

90

 

 

 

108

 

 

 

117

 

 

376

 

 

 

585

Total interest and dividend income

 

21,893

 

 

 

20,614

 

 

20,092

 

 

 

18,777

 

 

 

19,146

 

 

81,376

 

 

 

77,487

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense on deposits

 

2,198

 

 

 

2,387

 

 

2,744

 

 

 

3,114

 

 

 

3,557

 

 

10,443

 

 

 

18,180

Interest expense on borrowings

 

767

 

 

 

503

 

 

769

 

 

 

1,008

 

 

 

1,285

 

 

3,047

 

 

 

4,472

Total interest expense

 

2,965

 

 

 

2,890

 

 

3,513

 

 

 

4,122

 

 

 

4,842

 

 

13,490

 

 

 

22,652

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

18,928

 

 

 

17,724

 

 

16,579

 

 

 

14,655

 

 

 

14,304

 

 

67,886

 

 

 

54,835

Provision (credit) for loan losses

 

125

 

 

 

134

 

 

(20

)

 

 

(296

)

 

 

709

 

 

(57

)

 

 

7,605

Net interest income after provision (credit) for loan losses

 

18,803

 

 

 

17,590

 

 

16,599

 

 

 

14,951

 

 

 

13,595

 

 

67,943

 

 

 

47,230

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains and fees from sales of loans

 

441

 

 

 

924

 

 

814

 

 

 

513

 

 

 

16

 

 

2,692

 

 

 

43

Bank owned life insurance

 

270

 

 

 

271

 

 

251

 

 

 

231

 

 

 

241

 

 

1,023

 

 

 

967

Service charges and fees

 

257

 

 

 

199

 

 

217

 

 

 

199

 

 

 

210

 

 

872

 

 

 

788

Gain on sale of other real estate owned, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19

Other

 

(143

)

 

 

43

 

 

158

 

 

 

1,013

 

 

 

154

 

 

1,070

 

 

 

1,067

Total noninterest income

 

825

 

 

 

1,437

 

 

1,440

 

 

 

1,956

 

 

 

621

 

 

5,657

 

 

 

2,884

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

4,806

 

 

 

4,782

 

 

3,960

 

 

 

4,769

 

 

 

5,453

 

 

18,317

 

 

 

21,355

Occupancy and equipment

 

2,411

 

 

 

2,615

 

 

3,250

 

 

 

2,406

 

 

 

4,516

 

 

10,682

 

 

 

10,926

Professional services

 

628

 

 

 

498

 

 

547

 

 

 

587

 

 

 

591

 

 

2,260

 

 

 

2,110

Data processing

 

432

 

 

 

632

 

 

833

 

 

 

512

 

 

 

1,658

 

 

2,409

 

 

 

3,216

Director fees

 

335

 

 

 

324

 

 

327

 

 

 

317

 

 

 

331

 

 

1,303

 

 

 

1,214

FDIC insurance

 

231

 

 

 

298

 

 

300

 

 

 

403

 

 

 

262

 

 

1,232

 

 

 

791

Marketing

 

87

 

 

 

186

 

 

140

 

 

 

(9

)

 

 

118

 

 

404

 

 

 

630

Other

 

749

 

 

 

1,035

 

 

695

 

 

 

653

 

 

 

774

 

 

3,132

 

 

 

2,571

Total noninterest expense

 

9,679

 

 

 

10,370

 

 

10,052

 

 

 

9,638

 

 

 

13,703

 

 

39,739

 

 

 

42,813

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax expense

 

9,949

 

 

 

8,657

 

 

7,987

 

 

 

7,269

 

 

 

513

 

 

33,861

 

 

 

7,301

Income tax expense

 

2,135

 

 

 

1,802

 

 

1,759

 

 

 

1,579

 

 

 

177

 

 

7,275

 

 

 

1,397

Net income

$

7,814

 

 

$

6,855

 

$

6,228

 

 

$

5,690

 

 

$

336

 

$

26,586

 

 

$

5,904

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Common Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

1.00

 

 

$

0.88

 

$

0.79

 

 

$

0.72

 

 

$

0.04

 

$

3.38

 

 

$

0.75

Diluted

$

0.99

 

 

$

0.87

 

$

0.79

 

 

$

0.71

 

 

$

0.04

 

$

3.36

 

 

$

0.75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

7,660,307

 

 

 

7,677,822

 

 

7,722,481

 

 

 

7,758,540

 

 

 

7,726,926

 

 

7,706,407

 

 

 

7,728,328

Diluted

 

7,726,420

 

 

 

7,738,758

 

 

7,768,026

 

 

 

7,800,777

 

 

 

7,728,206

 

 

7,761,811

 

 

 

7,748,453

Dividends per common share

$

0.18

 

 

$

0.18

 

$

0.14

 

 

$

0.14

 

 

$

0.14

 

$

0.64

 

 

$

0.56

 

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)

 

 

For the Quarter Ended

 

For the Year Ended

 

December 31, 2021

 

September 30, 2021

 

June 30, 2021

 

March 31, 2021

 

December 31, 2020

 

December 31, 2021

 

December 31, 2020

Performance ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets(1)

1.32

%

 

1.22

%

 

1.11

%

 

1.02

%

 

0.06

%

 

1.17

%

 

0.28

%

Return on average stockholders' equity(1)

15.44

%

 

14.09

%

 

13.06

%

 

12.67

%

 

0.75

%

 

13.86

%

 

3.35

%

Return on average tangible common equity(1)

15.65

%

 

14.29

%

 

13.25

%

 

12.86

%

 

0.76

%

 

14.05

%

 

3.40

%

Net interest margin

3.43

%

 

3.39

%

 

3.12

%

 

2.74

%

 

2.66

%

 

3.17

%

 

2.77

%

Efficiency ratio(2)

48.8

%

 

54.1

%

 

55.7

%

 

58.0

%

 

91.2

%

 

53.9

%

 

73.9

%

Net loan charge-offs as a % of average loans

%

 

%

 

0.23

%

 

0.01

%

 

%

 

0.23

%

 

0.01

%

Dividend payout ratio(3)

18.18

%

 

20.69

%

 

17.72

%

 

19.72

%

 

350.00

%

 

19.05

%

 

74.67

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

2020 performance ratios were negatively impacted by COVID-19 pandemic related loan loss reserves and $3.9 million in one-time charges related to office consolidation, contract termination and employee severance costs recognized in the fourth quarter of 2020.

(2)

Efficiency ratio is defined as noninterest expense, less other real estate owned expenses and amortization of intangible assets, divided by our operating revenue, which is equal to net interest income plus noninterest income excluding gains and losses on sales of securities and gains and losses on other real estate owned. In our judgment, the adjustments made to operating revenue allow investors and analysts to better assess our operating expenses in relation to our core operating revenue by removing the volatility that is associated with certain one-time items and other discrete items that are unrelated to our core business.

(3)

The dividend payout ratio is calculated by dividing dividends per share by earnings per share.

 

As of

 

December 31, 2021

 

September 30, 2021

 

June 30, 2021

 

March 31, 2021

 

December 31, 2020

Capital ratios:

 

 

 

 

 

 

 

 

 

Total Common Equity Tier 1 Capital to Risk-Weighted Assets(1)

 

11.18

%

 

 

10.59

%

 

 

10.95

%

 

 

11.02

%

 

 

11.06

%

Total Capital to Risk-Weighted Assets(1)

 

12.00

%

 

 

11.44

%

 

 

11.84

%

 

 

12.17

%

 

 

12.28

%

Tier I Capital to Risk-Weighted Assets(1)

 

11.18

%

 

 

10.59

%

 

 

10.95

%

 

 

11.02

%

 

 

11.06

%

Tier I Capital to Average Assets(1)

 

9.94

%

 

 

9.61

%

 

 

9.19

%

 

 

8.82

%

 

 

8.44

%

Tangible common equity to tangible assets

 

8.13

%

 

 

8.70

%

 

 

8.30

%

 

 

8.27

%

 

 

7.73

%

Tangible book value per common share(2)

$

26.19

 

 

$

25.25

 

 

$

24.40

 

 

$

23.99

 

 

$

22.43

 

(1)

Represents Bank ratios. Current period capital ratios are preliminary subject to finalization of the FDIC Call Report.

(2)

Excludes unvested restricted shares of 190,359, 178,797, 184,548, 186,485, and 163,369 as of December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively.

 

BANKWELL FINANCIAL GROUP, INC.

ASSET QUALITY (unaudited)

(Dollars in thousands)

 

 

For the Quarter Ended

 

December 31, 2021

 

September 30, 2021

 

June 30, 2021

 

March 31, 2021

 

December 31, 2020

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$

16,803

 

 

$

16,672

 

 

$

20,545

 

 

$

21,009

 

 

$

20,372

 

Charge-offs:

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

 

 

 

 

 

(3,814

)

 

 

(163

)

 

 

 

Commercial business

 

(26

)

 

 

 

 

 

(51

)

 

 

 

 

 

(75

)

Consumer

 

(5

)

 

 

(15

)

 

 

(4

)

 

 

(14

)

 

 

(11

)

Total charge-offs

 

(31

)

 

 

(15

)

 

 

(3,869

)

 

 

(177

)

 

 

(86

)

Recoveries:

 

 

 

 

 

 

 

 

 

Commercial business

 

2

 

 

 

11

 

 

 

16

 

 

 

 

 

 

14

 

Consumer

 

3

 

 

 

1

 

 

 

 

 

 

9

 

 

 

 

Total recoveries

 

5

 

 

 

12

 

 

 

16

 

 

 

9

 

 

 

14

 

Net loan charge-offs

 

(26

)

 

 

(3

)

 

 

(3,853

)

 

 

(168

)

 

 

(72

)

Provision (credit) for loan losses

 

125

 

 

 

134

 

 

 

(20

)

 

 

(296

)

 

 

709

 

Balance at end of period

$

16,902

 

 

$

16,803

 

 

$

16,672

 

 

$

20,545

 

 

$

21,009

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

December 31, 2021

 

September 30, 2021

 

June 30, 2021

 

March 31, 2021

 

December 31, 2020

Asset quality:

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

 

 

 

 

 

 

 

 

Residential real estate

$

2,380

 

 

$

1,849

 

 

$

1,160

 

 

$

1,289

 

 

$

1,492

 

Commercial real estate

 

3,482

 

 

 

16,314

 

 

 

15,392

 

 

 

19,277

 

 

 

21,093

 

Commercial business

 

1,728

 

 

 

1,754

 

 

 

1,780

 

 

 

1,803

 

 

 

1,834

 

Construction

 

8,997

 

 

 

8,997

 

 

 

8,997

 

 

 

8,997

 

 

 

8,997

 

Total nonaccrual loans

 

16,587

 

 

 

28,914

 

 

 

27,329

 

 

 

31,366

 

 

 

33,416

 

Other real estate owned

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total nonperforming assets

$

16,587

 

 

$

28,914

 

 

$

27,329

 

 

$

31,366

 

 

$

33,416

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans as a % of total loans

 

0.88

%

 

 

1.58

%

 

 

1.57

%

 

 

1.87

%

 

 

2.06

%

Nonperforming assets as a % of total assets

 

0.68

%

 

 

1.30

%

 

 

1.20

%

 

 

1.40

%

 

 

1.48

%

Allowance for loan losses as a % of total loans

 

0.89

%

 

 

0.92

%

 

 

0.96

%

 

 

1.23

%

 

 

1.29

%

Allowance for loan losses as a % of nonperforming loans

 

101.90

%

 

 

58.11

%

 

 

61.00

%

 

 

65.50

%

 

 

62.87

%

Total nonaccrual loans declined $16.8 million to $16.6 million as of December 31, 2021 when compared to December 31, 2020, primarily a result of $11.0 million of previously reported nonaccrual loans becoming performing loans during the fourth quarter of 2021. Nonperforming assets as a percentage of total assets was 0.68% at December 31, 2021, down from 1.48% at December 31, 2020. The allowance for loan losses at December 31, 2021 was $16.9 million, representing 0.89% of total loans.

 

BANKWELL FINANCIAL GROUP, INC.

LOAN & DEPOSIT PORTFOLIO (unaudited)

(Dollars in thousands)

 

Period End Loan Composition

December 31, 2021

 

September 30, 2021

 

December 31, 2020

 

Current QTD % Change

 

YTD % Change

Residential Real Estate

$

79,987

 

$

90,110

 

$

113,557

 

(11.2

) %

 

(29.6

) %

Commercial Real Estate(1)

 

1,356,709

 

 

1,337,896

 

 

1,148,383

 

1.4

 

 

18.1

 

Construction

 

98,341

 

 

94,665

 

 

87,007

 

3.9

 

 

13.0

 

Total Real Estate Loans

 

1,535,037

 

 

1,522,671

 

 

1,348,947

 

0.8

 

 

13.8

 

 

 

 

 

 

 

 

 

 

 

Commercial Business(2)

 

350,975

 

 

292,825

 

 

276,601

 

19.9

 

 

26.9

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

8,869

 

 

9,050

 

 

79

 

(2.0

)

 

N/M(3)

Total Loans

$

1,894,881

 

$

1,824,546

 

$

1,625,627

 

3.9

%

 

16.6

%

 

 

 

 

 

 

 

 

 

 

(1)

Includes owner occupied commercial real estate.

(2)

Includes $0.2 million, $1.6 million, and $34.8 million of PPP loans at December 31, 2021, September 30, 2021 and December 31, 2020, respectively.

(3)

Metric not meaningful.

Gross loans totaled $1.9 billion at December 31, 2021, an increase of $269.3 million compared to December 31, 2020. Excluding PPP loans, gross loans increased by $303.9 million, or 19.1%, at December 31, 2021 when compared to December 31, 2020.

Period End Deposit Composition

December 31, 2021

 

September 30, 2021

 

December 31, 2020

 

Current QTD % Change

 

YTD % Change

Noninterest bearing demand

$

398,956

 

$

338,705

 

$

270,235

 

17.8

%

 

47.6

%

NOW

 

119,479

 

 

103,180

 

 

101,737

 

15.8

 

 

17.4

 

Money Market

 

954,674

 

 

835,210

 

 

669,364

 

14.3

 

 

42.6

 

Savings

 

193,631

 

 

188,581

 

 

158,750

 

2.7

 

 

22.0

 

Time

 

457,258

 

 

417,147

 

 

627,230

 

9.6

 

 

(27.1

)

Total Deposits

$

2,123,998

 

$

1,882,823

 

$

1,827,316

 

12.8

%

 

16.2

%

Total deposits were $2.1 billion at December 31, 2021, compared to $1.8 billion at December 31, 2020, an increase of $296.7 million, or 16.2%. Noninterest bearing deposits grew by $128.7 million, or 47.6%, as of December 31, 2021, compared to December 31, 2020.

 

BANKWELL FINANCIAL GROUP, INC.

NONINTEREST INCOME (unaudited)

(Dollars in thousands)

 

 

For the Quarter Ended

 

 

 

 

Noninterest income

December 31, 2021

 

September 30, 2021

 

December 31, 2020

 

Dec 21 vs. Sep 21 % Change

 

Dec 21 vs. Dec 20 % Change

Gains and fees from sales of loans

$

441

 

 

$

924

 

$

16

 

(52.3

) %

 

2,656.3

%

Bank owned life insurance

 

270

 

 

 

271

 

 

241

 

(0.4

)

 

12.0

 

Service charges and fees

 

257

 

 

 

199

 

 

210

 

29.1

 

 

22.4

 

Other

 

(143

)

 

 

43

 

 

154

 

(432.6

)

 

(192.9

)

Total noninterest income

$

825

 

 

$

1,437

 

$

621

 

(42.6

) %

 

32.9

%

 

For the Year Ended

 

 

Noninterest income

December 31, 2021

 

December 31, 2020

 

% Change

Gains and fees from sales of loans

$

2,692

 

$

43

 

6,160.5

%

Bank owned life insurance

 

1,023

 

 

967

 

5.8

 

Service charges and fees

 

872

 

 

788

 

10.7

 

Gain on sale of other real estate owned, net

 

 

 

19

 

(100.0

)

Other

 

1,070

 

 

1,067

 

0.3

 

Total noninterest income

$

5,657

 

$

2,884

 

96.2

%

Noninterest income increased by $0.2 million to $0.8 million for the quarter ended December 31, 2021 compared to the quarter ended December 31, 2020. Noninterest income increased by $2.8 million to $5.7 million for the year ended December 31, 2021 compared to the year ended December 31, 2020.

The increase in noninterest income was driven by resumed loan sales, totaling $0.4 million and $2.7 million for the quarter and year ended December 31, 2021, respectively. The increase for the year was also impacted by a one-time federal payroll tax credit for COVID-19 of $0.9 million, partially offset by a $0.2 million loss on the sale of the Company's former headquarters building. In addition, in 2020 the Company recognized a $0.4 million benefit of non-recurring interest rate swap fees.

 

BANKWELL FINANCIAL GROUP, INC.

NONINTEREST EXPENSE (unaudited)

(Dollars in thousands)

 

 

For the Quarter Ended

 

 

 

 

Noninterest expense

December 31, 2021

 

September 30, 2021

 

December 31, 2020

 

Dec 21 vs. Sep 21 % Change

 

Dec 21 vs. Dec 20 % Change

Salaries and employee benefits

$

4,806

 

$

4,782

 

$

5,453

 

0.5

%

 

(11.9

) %

Occupancy and equipment

 

2,411

 

 

2,615

 

 

4,516

 

(7.8

)

 

(46.6

)

Professional services

 

628

 

 

498

 

 

591

 

26.1

 

 

6.3

 

Data processing

 

432

 

 

632

 

 

1,658

 

(31.6

)

 

(73.9

)

Director fees

 

335

 

 

324

 

 

331

 

3.4

 

 

1.2

 

FDIC insurance

 

231

 

 

298

 

 

262

 

(22.5

)

 

(11.8

)

Marketing

 

87

 

 

186

 

 

118

 

(53.2

)

 

(26.3

)

Other

 

749

 

 

1,035

 

 

774

 

(27.6

)

 

(3.2

)

Total noninterest expense

$

9,679

 

$

10,370

 

$

13,703

 

(6.7

) %

 

(29.4

) %

 

 

For the Year Ended

 

 

Noninterest expense

December 31, 2021

 

December 31, 2020

 

% Change

Salaries and employee benefits

$

18,317

 

$

21,355

 

(14.2

) %

Occupancy and equipment

 

10,682

 

 

10,926

 

(2.2

)

Data processing

 

2,409

 

 

3,216

 

(25.1

)

Professional services

 

2,260

 

 

2,110

 

7.1

 

Director fees

 

1,303

 

 

1,214

 

7.3

 

FDIC insurance

 

1,232

 

 

791

 

55.8

 

Marketing

 

404

 

 

630

 

(35.9

)

Other

 

3,132

 

 

2,571

 

21.8

 

Total noninterest expense

$

39,739

 

$

42,813

 

(7.2

) %

Noninterest expense decreased by $4.0 million to $9.7 million for the quarter ended December 31, 2021 compared to the quarter ended December 31, 2020. The decrease in noninterest expense was primarily driven by a decrease in salaries and employee benefits expense, occupancy and equipment expense and data processing expense.

Noninterest expense decreased by $3.1 million to $39.7 million for the year ended December 31, 2021 compared to the year ended December 31, 2020. The decrease in noninterest expense was primarily driven by a decrease in salaries and employee benefits expense and data processing expense.

Salaries and employee benefits expense totaled $4.8 million for the quarter ended December 31, 2021, a decrease of $0.6 million when compared to the same period in 2020. Salaries and employee benefits expense totaled $18.3 million for the year ended December 31, 2021, a decrease of $3.0 million when compared to the same period in 2020. The decrease in salaries and employee benefits expense was primarily driven by a decrease in full time equivalent employees as a direct result of the Voluntary Early Retirement Incentive Plan offered to eligible employees and other employee actions taken during the fourth quarter of 2020. Average full time equivalent employees totaled 126 for the year ended December 31, 2021 compared to 146 for the same period in 2020. In addition, salaries and employee benefits expense also benefited by one-time deferrals of $0.9 million for the year ended December 31, 2021 related to costs associated with the implementation of a new online banking and other systems. Salaries and employee benefits were also favorably impacted as higher loan originations enabled the Bank to defer a greater amount of expenses.

Occupancy and equipment expense totaled $2.4 million for the quarter ended December 31, 2021, a decrease of $2.1 million when compared to the same period in 2020. The decrease in occupancy and equipment expense was primarily due to costs associated with office and branch consolidation, recognized during the fourth quarter of 2020.

Data processing expense totaled $0.4 million for the quarter ended December 31, 2021, a decrease of $1.2 million when compared to the same period in 2020. Data processing expense totaled $2.4 million for the year ended December 31, 2021, a decrease of $0.8 million when compared to the same period in 2020. The decrease in data processing expense was primarily driven by a $1.1 million one-time charge related to early termination fees payable to a legacy technology vendor recognized during the fourth quarter of 2020.

 

BANKWELL FINANCIAL GROUP, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited)

(Dollars in thousands, except share data)

 

 

As of

Computation of Tangible Common Equity to Tangible Assets

December 31, 2021

 

September 30, 2021

 

June 30, 2021

 

March 31, 2021

 

December 31, 2020

Total Equity

$

201,987

 

 

$

196,177

 

 

$

190,795

 

 

$

187,943

 

 

$

176,602

 

Less:

 

 

 

 

 

 

 

 

 

Goodwill

 

2,589

 

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

Other intangibles

 

 

 

 

48

 

 

 

58

 

 

 

67

 

 

 

76

 

Tangible Common Equity

$

199,398

 

 

$

193,540

 

 

$

188,148

 

 

$

185,287

 

 

$

173,937

 

 

 

 

 

 

 

 

 

 

 

Total Assets

$

2,456,264

 

 

$

2,226,688

 

 

$

2,269,825

 

 

$

2,244,467

 

 

$

2,253,747

 

Less:

 

 

 

 

 

 

 

 

 

Goodwill

 

2,589

 

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

Other intangibles

 

 

 

 

48

 

 

 

58

 

 

 

67

 

 

 

76

 

Tangible Assets

$

2,453,675

 

 

$

2,224,051

 

 

$

2,267,178

 

 

$

2,241,811

 

 

$

2,251,082

 

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity to Tangible Assets

 

8.13

%

 

 

8.70

%

 

 

8.30

%

 

 

8.27

%

 

 

7.73

%

 

As of

Computation of Tangible Book Value per Common Share

December 31, 2021

 

September 30, 2021

 

June 30, 2021

 

March 31, 2021

 

December 31, 2020

Total shareholders' equity

$

201,987

 

$

196,177

 

$

190,795

 

$

187,943

 

$

176,602

Less:

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

 

 

Common shareholders' equity

$

201,987

 

$

196,177

 

$

190,795

 

$

187,943

 

$

176,602

Less:

 

 

 

 

 

 

 

 

 

Goodwill

 

2,589

 

 

2,589

 

 

2,589

 

 

2,589

 

 

2,589

Other intangibles

 

 

 

48

 

 

58

 

 

67

 

 

76

Tangible common shareholders' equity

$

199,398

 

$

193,540

 

$

188,148

 

$

185,287

 

$

173,937

Common shares

 

7,803,166

 

 

7,842,824

 

 

7,895,101

 

 

7,908,630

 

 

7,919,278

Less:

 

 

 

 

 

 

 

 

 

Shares of unvested restricted stock

 

190,359

 

 

178,797

 

 

184,548

 

 

186,485

 

 

163,369

Common shares less unvested restricted stock

 

7,612,807

 

 

7,664,027

 

 

7,710,553

 

 

7,722,145

 

 

7,755,909

Book value per share

$

26.53

 

$

25.60

 

$

24.74

 

$

24.34

 

$

22.77

Less:

 

 

 

 

 

 

 

 

 

Effects of intangible assets

$

0.34

 

$

0.34

 

$

0.34

 

$

0.34

 

$

0.34

 

 

 

 

 

 

 

 

 

 

Tangible Book Value per Common Share

$

26.19

 

$

25.25

 

$

24.40

 

$

23.99

 

$

22.43

 

BANKWELL FINANCIAL GROUP, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited) - Continued

(Dollars in thousands)

 

 

For the Quarter Ended

 

For the Year Ended

Computation of Efficiency Ratio

December 31, 2021

 

September 30, 2021

 

June 30, 2021

 

March 31, 2021

 

December 31, 2020

 

December 31, 2021

 

December 31, 2020

Noninterest expense

$

9,679

 

 

$

10,370

 

 

$

10,052

 

 

$

9,638

 

 

$

13,703

 

 

$

39,739

 

 

$

42,813

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

48

 

 

 

9

 

 

 

9

 

 

 

9

 

 

 

84

 

 

 

76

 

 

 

138

 

Other real estate owned expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

Adjusted noninterest expense

$

9,631

 

 

$

10,361

 

 

$

10,043

 

 

$

9,629

 

 

$

13,619

 

 

$

39,663

 

 

$

42,669

 

Net interest income

$

18,928

 

 

$

17,724

 

 

$

16,579

 

 

$

14,655

 

 

$

14,304

 

 

$

67,886

 

 

$

54,835

 

Noninterest income

 

825

 

 

 

1,437

 

 

 

1,440

 

 

 

1,956

 

 

 

621

 

 

 

5,657

 

 

 

2,884

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain on sale of available for sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of other real estate owned, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19

 

Operating revenue

$

19,753

 

 

$

19,161

 

 

$

18,019

 

 

$

16,611

 

 

$

14,925

 

 

$

73,543

 

 

$

57,700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

48.8

%

 

 

54.1

%

 

 

55.7

%

 

 

58.0

%

 

 

91.2

%

 

 

53.9

%

 

 

73.9

%

 

For the Quarter Ended

 

For the Year Ended

Computation of Return on Average Tangible Common Equity

December 31, 2021

 

September 30, 2021

 

June 30, 2021

 

March 31, 2021

 

December 31, 2020

 

December 31, 2021

 

December 31, 2020

Net Income Attributable to Common Shareholders

$

7,814

 

 

$

6,855

 

 

$

6,228

 

 

$

5,690

 

 

$

336

 

 

$

26,586

 

 

$

5,904

 

Total average shareholders' equity

$

200,752

 

 

$

192,993

 

 

$

191,224

 

 

$

182,058

 

 

$

178,439

 

 

$

191,808

 

 

$

176,489

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Goodwill

 

2,589

 

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

Average Other intangibles

 

45

 

 

 

54

 

 

 

64

 

 

 

73

 

 

 

153

 

 

 

59

 

 

 

180

 

Average tangible common equity

$

198,118

 

 

$

190,350

 

 

$

188,571

 

 

$

179,396

 

 

$

175,697

 

 

$

189,160

 

 

$

173,720

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Return on Average Tangible Common Equity

 

15.65

%

 

 

14.29

%

 

 

13.25

%

 

 

12.86

%

 

 

0.76

%

 

 

14.05

%

 

 

3.40

%

 

BANKWELL FINANCIAL GROUP, INC.

NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - QTD (unaudited)

(Dollars in thousands)

 

 

For the Quarter Ended

 

December 31, 2021

 

December 31, 2020

 

Average Balance

 

Interest

 

Yield/ Rate (4)

 

Average Balance

 

Interest

 

Yield/ Rate (4)

Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and Fed funds sold

$

233,196

 

$

90

 

0.15

%

 

$

424,327

 

$

117

 

0.11

%

Securities(1)

 

104,797

 

 

756

 

2.89

 

 

 

105,422

 

 

814

 

3.09

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

1,337,147

 

 

15,104

 

4.42

 

 

 

1,096,912

 

 

12,753

 

4.55

 

Residential real estate

 

83,763

 

 

694

 

3.31

 

 

 

115,104

 

 

1,009

 

3.51

 

Construction

 

95,611

 

 

972

 

3.98

 

 

 

93,909

 

 

910

 

3.79

 

Commercial business

 

347,394

 

 

4,222

 

4.75

 

 

 

311,995

 

 

3,520

 

4.41

 

Consumer

 

8,904

 

 

89

 

3.97

 

 

 

96

 

 

2

 

7.41

 

Total loans

 

1,872,819

 

 

21,081

 

4.40

 

 

 

1,618,016

 

 

18,194

 

4.40

 

Federal Home Loan Bank stock

 

2,814

 

 

16

 

2.28

 

 

 

7,859

 

 

74

 

3.75

 

Total earning assets

 

2,213,626

 

$

21,943

 

3.88

%

 

 

2,155,624

 

$

19,199

 

3.48

%

Other assets

 

130,512

 

 

 

 

 

 

123,435

 

 

 

 

Total assets

$

2,344,138

 

 

 

 

 

$

2,279,059

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

NOW

$

114,158

 

$

51

 

0.18

%

 

$

93,126

 

$

42

 

0.18

%

Money market

 

874,352

 

 

1,097

 

0.50

 

 

 

644,685

 

 

858

 

0.53

 

Savings

 

190,118

 

 

100

 

0.21

 

 

 

168,307

 

 

164

 

0.39

 

Time

 

438,627

 

 

950

 

0.86

 

 

 

686,827

 

 

2,493

 

1.44

 

Total interest bearing deposits

 

1,617,255

 

 

2,198

 

0.54

 

 

 

1,592,945

 

 

3,557

 

0.89

 

Borrowed Money

 

89,726

 

 

767

 

3.35

 

 

 

200,250

 

 

1,285

 

2.51

 

Total interest bearing liabilities

 

1,706,981

 

$

2,965

 

0.69

%

 

 

1,793,195

 

$

4,842

 

1.07

%

Noninterest bearing deposits

 

383,557

 

 

 

 

 

 

255,843

 

 

 

 

Other liabilities

 

52,848

 

 

 

 

 

 

51,582

 

 

 

 

Total liabilities

 

2,143,386

 

 

 

 

 

 

2,100,620

 

 

 

 

Shareholders' equity

 

200,752

 

 

 

 

 

 

178,439

 

 

 

 

Total liabilities and shareholders' equity

$

2,344,138

 

 

 

 

 

$

2,279,059

 

 

 

 

Net interest income(2)

 

 

$

18,978

 

 

 

 

 

$

14,357

 

 

Interest rate spread

 

 

 

 

3.19

%

 

 

 

 

 

2.41

%

Net interest margin(3)

 

 

 

 

3.43

%

 

 

 

 

 

2.66

%

(1)

Average balances and yields for securities are based on amortized cost.

(2)

The adjustment for securities and loans taxable equivalency amounted to $50 thousand and $53 thousand for the quarters ended December 31, 2021 and 2020, respectively.

(3)

Annualized net interest income as a percentage of earning assets.

(4)

Yields are calculated using the contractual day count convention for each respective product type.

 

BANKWELL FINANCIAL GROUP, INC.

NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - YTD (unaudited)

(Dollars in thousands)

 

 

For the Year Ended

 

December 31, 2021

 

December 31, 2020

 

Average Balance

 

Interest

 

Yield/ Rate (3)

 

Average Balance

 

Interest

 

Yield/ Rate (3)

Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and Fed funds sold

$

294,471

 

$

376

 

0.13

%

 

$

261,689

 

$

585

 

0.22

%

Securities(1)

 

103,592

 

 

3,071

 

2.96

 

 

 

98,938

 

 

3,103

 

3.14

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

1,225,770

 

 

55,995

 

4.51

 

 

 

1,095,367

 

 

51,218

 

4.60

 

Residential real estate

 

99,101

 

 

3,363

 

3.39

 

 

 

129,585

 

 

4,645

 

3.58

 

Construction

 

97,163

 

 

3,780

 

3.84

 

 

 

97,230

 

 

4,262

 

4.31

 

Commercial business

 

313,422

 

 

14,589

 

4.59

 

 

 

295,662

 

 

13,530

 

4.50

 

Consumer

 

7,929

 

 

315

 

3.97

 

 

 

121

 

 

10

 

8.00

 

Total loans

 

1,743,385

 

 

78,042

 

4.42

 

 

 

1,617,965

 

 

73,665

 

4.48

 

Federal Home Loan Bank stock

 

4,156

 

 

88

 

2.12

 

 

 

7,625

 

 

346

 

4.53

 

Total earning assets

 

2,145,604

 

$

81,577

 

3.75

%

 

 

1,986,217

 

$

77,699

 

3.85

%

Other assets

 

120,955

 

 

 

 

 

 

125,261

 

 

 

 

Total assets

$

2,266,559

 

 

 

 

 

$

2,111,478

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

NOW

$

111,515

 

$

198

 

0.18

%

 

$

80,805

 

$

141

 

0.17

%

Money market

 

804,679

 

 

4,042

 

0.50

 

 

 

516,527

 

 

4,071

 

0.79

 

Savings

 

175,629

 

 

413

 

0.23

 

 

 

169,763

 

 

1,368

 

0.81

 

Time

 

508,651

 

 

5,790

 

1.14

 

 

 

712,461

 

 

12,600

 

1.77

 

Total interest bearing deposits

 

1,600,474

 

 

10,443

 

0.65

 

 

 

1,479,556

 

 

18,180

 

1.23

 

Borrowed Money

 

103,919

 

 

3,047

 

2.89

 

 

 

190,463

 

 

4,472

 

2.31

 

Total interest bearing liabilities

 

1,704,393

 

$

13,490

 

0.79

%

 

 

1,670,019

 

$

22,652

 

1.36

%

Noninterest bearing deposits

 

323,648

 

 

 

 

 

 

215,073

 

 

 

 

Other liabilities

 

46,710

 

 

 

 

 

 

49,897

 

 

 

 

Total liabilities

 

2,074,751

 

 

 

 

 

 

1,934,989

 

 

 

 

Shareholders' equity

 

191,808

 

 

 

 

 

 

176,489

 

 

 

 

Total liabilities and shareholders' equity

$

2,266,559

 

 

 

 

 

$

2,111,478

 

 

 

 

Net interest income(2)

 

 

$

68,087

 

 

 

 

 

$

55,047

 

 

Interest rate spread

 

 

 

 

2.96

%

 

 

 

 

 

2.49

%

Net interest margin

 

 

 

 

3.17

%

 

 

 

 

 

2.77

%

(1)

Average balances and yields for securities are based on amortized cost.

(2)

The adjustment for securities and loans taxable equivalency amounted to $201 thousand and $212 thousand for the years ended December 31, 2021 and 2020, respectively.

(3)

Yields are calculated using the contractual day count convention for each respective product type.

 

Bankwell Financial Group, Inc. Christopher R. Gruseke, President and Chief Executive Officer or Penko Ivanov, Executive Vice President and Chief Financial Officer (203) 652-0166

Bankwell Financial (NASDAQ:BWFG)
Historical Stock Chart
From Apr 2022 to May 2022 Click Here for more Bankwell Financial Charts.
Bankwell Financial (NASDAQ:BWFG)
Historical Stock Chart
From May 2021 to May 2022 Click Here for more Bankwell Financial Charts.