EX-99.1 2 ex991q32024earningsrelease.htm EX-99.1

BANKWELL FINANCIAL GROUP REPORTS OPERATING RESULTS FOR THE THIRD QUARTER, DECLARES FOURTH QUARTER DIVIDEND, AND ANNOUNCES SHARE REPURCHASE PLAN

New Canaan, CT – October 28, 2024 – Bankwell Financial Group, Inc. (NASDAQ: BWFG), a leading commercial bank with a growing digital focus, reported GAAP net income of $1.9 million, or $0.24 per share for the third quarter of 2024, versus $1.1 million, or $0.14 per share, for the second quarter of 2024. The Company's Board of Directors declared a $0.20 per share cash dividend, payable November 22, 2024 to shareholders of record on November 11, 2024.

Third quarter of 2024 results include an $8.2 million previously disclosed charge-off taken against a $13.7 million office loan participation as a $0.79 drag to earnings per share. Pre-tax, pre-provision net revenue (PPNR) of $9.0 million, or $1.17 per share, fell 7% relative to the second quarter of 2024 at $9.7 million, or $1.25 per share.

On October 28, 2024, the Company announced that on October 23, 2024, its Board of Directors authorized a new share repurchase plan. Under the terms of the share repurchase plan, the Company is authorized to buy back up to 250,000 shares of its outstanding common stock. In connection with the authorization of the new plan, the Company terminated its existing plan, originally approved in 2018 and amended in 2021, pursuant to which the Company has purchased 532,802 shares of its common stock.

Discussion of Outlook; Bankwell Financial Group President and CEO, Christopher R. Gruseke:

"Although we were disappointed with the elevated charge-off in the third quarter, the Company’s go-forward outlook remains favorable. Our liability sensitive balance sheet leaves us well positioned for accelerating margin expansion in the coming quarters, and we believe that strategic investments in our commercial lending platform will help us diversify our assets and improve our profitability."

Key Points for Third Quarter and Bankwell’s Outlook

Brokered Deposits Decrease, Liability Sensitive Balance Sheet.

•Brokered deposits declined $24.2 million in the third quarter of 2024 and are down $168.5 million since December 31, 2023.

•Reported net interest margin was 2.72%, which included a -6 basis point impact as a result of charges associated with a single non-performing loan and fees associated with called brokered CDs.

•With $1.3 billion of time deposits maturing in the next 12 months at a weighted average rate of 4.89%, the Company anticipates an annualized reduction in funding costs by $3.35 million, given current pricing. This translates into approximately $0.33 incremental EPS, or approximately 11 basis points on net interest margin, given no further changes to Fed Funds and stable asset yields.

•Further, the Company anticipates $0.5 billion of loans to reprice or mature over the same period, which could further benefit net interest margin by an additional 15 to 20 basis points on an annualized basis.

NPL to be Sold, Residential Care Upgrades a Positive Sign.

•A $27.1 million multifamily commercial real estate loan was placed on nonperforming status as of September 30, 2024. As of October 28, 2024, the Company has a signed agreement for the sale of this loan at par value. As of September 30, 2024, this loan comprises 103 basis points of the 2.50% nonperforming loans as a percentage of total loans.

•Elsewhere, favorable macroeconomic trends were reflected in improved operating results among the Company's residential care borrowers. Specifically, during the quarter four relationships totaling $42 million were upgraded. The Company anticipates the positive trend to continue as both Medicaid reimbursement rates and operational costs normalize.

Ongoing Investments with Continued Focus on Efficiency.

•The Company continues to invest for future growth, with notable recent developments including a lending partnership with Lendio, the launch of Bankwell Direct, the launch of a new Small Business Administration (SBA) division, and hiring key leadership personnel.

•The Company continues to operate efficiently with a non-interest expense to average asset ratio of 1.62% for the quarter ended September 30, 2024.

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Third Quarter 2024 Financial Highlights and Key Performance Indicators (KPIs):

									September 30, 2024						June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023
Return on average assets(1)									0.24		%				0.14		%				0.47		%				1.03		%				1.19		%
Pre-tax, pre-provision net revenue return on average assets(1)									1.13		%				1.22		%				1.10		%				1.27		%				1.37		%
Return on average shareholders' equity(1)									2.83		%				1.65		%				5.59		%				12.82		%				15.19		%
Net interest margin(1)									2.72		%				2.75		%				2.71		%				2.81		%				2.85		%
Efficiency Ratio(1)(2)									58.8		%				55.9		%				60.3		%				55.0		%				52.0		%
Noninterest expense to average assets(1)									1.62		%				1.55		%				1.66		%				1.56		%				1.48		%
Net loan charge-offs as % of average loans(1)									0.56		%				0.01		%				0.11		%				0.01		%				—		%
Dividend payout(1)(3)									82.30		%				142.86		%				41.67		%				18.35		%				16.00		%
Fully diluted tangible book value per common share(1)									$	33.76					$	33.61					$	33.57					$	33.39					$	32.55
Total capital to risk-weighted assets(1)(4)									12.83		%				12.98		%				12.63		%				12.32		%				11.86		%
Total common equity tier 1 capital to risk-weighted assets(1)(4)									11.80		%				11.73		%				11.60		%				11.30		%				10.82		%
Tier I Capital to Average Assets(1)(4)									10.24		%				10.17		%				10.09		%				9.81		%				9.60		%
Tangible common equity to tangible assets(1)									8.40		%				8.42		%				8.42		%				8.19		%				7.86		%
Earnings per common share - diluted									$	0.24					$	0.14					$	0.48					$	1.09					$	1.25
Common shares issued and outstanding									7,858,573						7,866,499						7,908,180						7,882,616						7,841,616

(1)     Non-GAAP Financial Measure, refer to the "Non-GAAP Financial Measures" and the "Reconciliation of GAAP to Non-GAAP Measures" sections of this document for additional detail.

(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.

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

Pre-Tax, Pre-Provision Net Revenue(1) ("PPNR")

PPNR for the three and nine months ended September 30, 2024, were $9.0 million and $27.4 million, respectively, a decrease of 20.1% and 28.6%, respectively, from the $11.3 million and $38.4 million recognized in the three and nine months ended September 30, 2023, respectively.

									For the Quarter Ended																														For the Nine Months Ended
(Dollars in thousands)									September 30, 2024						June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023						September 30, 2024						September 30, 2023
Net interest income									$	20,717					$	21,219					$	21,147					$	22,245					$	22,691					$	63,083					$	72,223
Total noninterest income									1,156						683						915						1,129						786						2,754						3,713
Total revenues									21,873						21,902						22,062						23,374						23,477						65,837						75,936
Total noninterest expense									12,865						12,245						13,297						12,864						12,205						38,407						37,537
PPNR									$	9,008					$	9,657					$	8,765					$	10,510					$	11,272					$	27,430					$	38,399

(1)     Non-GAAP Financial Measure, refer to the "Non-GAAP Financial Measures" section of this document for additional detail.

•Revenues (net interest income plus noninterest income) for the quarter ended September 30, 2024 were $21.9 million, versus $23.5 million for the quarter ended September 30, 2023. The decrease in revenues for the quarter ended September 30, 2024 was attributable to an increase in interest expense on deposits. Revenues for the nine months ended September 30, 2024 were $65.8 million, versus $75.9 million for the nine months ended September 30, 2023. The decrease in revenues for the quarter ended September 30, 2024 was attributable to an increase in interest expense on deposits and lower gains from loan sales, partially offset by an increase in interest and fees on loans due to higher loan yields and prepayment fees.

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•The net interest margin (fully taxable equivalent basis) for the quarters ended September 30, 2024 and September 30, 2023 was 2.72% and 2.85%, respectively. The decrease in the net interest margin was due to an increase in funding costs, partially offset by an increase in interest income on earning assets. For the quarter ended September 30, 2024, the net interest margin includes a -5 basis point unfavorable impact as a result of the $27.1 million commercial real estate loan being placed on non-performing status plus a -1 basis point unfavorable impact from one-time costs associated with Brokered CDs called during the quarter.

•Overall non-interest income of $1.2 million increased 69.3% when compared to the second quarter, primarily due to higher gains as a result of more SBA loan sales. Service charges increased when compared to the second quarter and continues to grow on a positive trend line.

•Total non-interest expense of $12.9 million increased 5% compared to the second quarter as the Company continues to invest in strategic initiatives.

Allowance for Credit Losses - Loans ("ACL-Loans")

The ACL-Loans was $27.8 million as of September 30, 2024 compared to $27.9 million as of December 31, 2023. The ACL-Loans as a percentage of total loans was 1.06% as of September 30, 2024 compared to 1.03% as of December 31, 2023.

Provision for credit losses was $6.3 million for the quarter ended September 30, 2024. The increase in the provision for credit losses for the quarter was primarily due to a charge-off of $8.2 million which previously did not have an associated specific reserve. The increase was partially offset by a $1.0 million recovery on a previously charged-off loan.

Total nonaccrual loans increased $9.3 million to $65.5 million as of September 30, 2024 when compared to the previous quarter. The increase was primarily due to a $27.1 million commercial real estate multifamily loan1. The increase was partially offset by two loans that were partially charged-off for a total of $15.4 million and two loans that were paid off totaling $4.7 million in the third quarter of 2024. Nonperforming assets as a percentage of total assets increased to 2.07% at September 30, 2024 from 1.53% at December 31, 2023.

1.As of October 28, 2024, the Company has a signed agreement for the sale of this loan at par value.

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BANKWELL FINANCIAL GROUP, INC.

ASSET QUALITY (unaudited)

(Dollars in thousands)

									For the Quarter Ended
									September 30, 2024						June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023
ACL-Loans:
Balance at beginning of period									$	36,083					$	27,991					$	27,946					$	29,284					$	30,694
Charge-offs:
Residential real estate									—						(9)						(132)						—						—
Commercial real estate									(8,184)						(522)						(3,306)						(824)						—
Commercial business									(7,010)						—						(197)						—						—
Consumer									(17)						(12)						(49)						(15)						(31)
Construction									(616)						—						—						—						—
Total charge-offs									(15,827)						(543)						(3,684)						(839)						(31)
Recoveries:
Residential real estate									—						141						—						—						—
Commercial real estate									1,013						113						—						—						—
Commercial business									(34)						—						27						464						35
Consumer									1						13						4						3						19
Construction									—						—						—						—						—
Total recoveries									980						267						31						467						54
Net loan (charge-offs) recoveries									(14,847)						(276)						(3,653)						(372)						23
Provision (credit) for credit losses - loans									6,516						8,368						3,698						(966)						(1,433)
Balance at end of period									$	27,752					$	36,083					$	27,991					$	27,946					$	29,284

									As of
									September 30, 2024						June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023
Asset quality:
Nonaccrual loans
Residential real estate									$	1,316					$	1,339					$	1,237					$	1,386					$	1,408
Commercial real estate									46,360						28,088						19,083						23,009						1,898
Commercial business									9,101						17,396						16,841						15,430						7,352
Construction									8,766						9,382						9,382						9,382						9,382
Consumer									—						—						—						—						7,917
Total nonaccrual loans									65,543						56,205						46,543						49,207						27,957
Other real estate owned									—						—						—						—						—
Total nonperforming assets									$	65,543					$	56,205					$	46,543					$	49,207					$	27,957
Nonperforming loans as a % of total loans									2.50		%				2.12		%				1.74		%				1.81		%				1.01		%
Nonperforming assets as a % of total assets									2.07		%				1.79		%				1.48		%				1.53		%				0.86		%
ACL-loans as a % of total loans									1.06		%				1.36		%				1.04		%				1.03		%				1.06		%
ACL-loans as a % of nonperforming loans									42.34		%				64.20		%				60.14		%				56.79		%				104.75		%
Total past due loans to total loans									2.48		%				0.84		%				1.44		%				0.78		%				1.44		%

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Financial Condition & Capital

Assets totaled $3.2 billion at September 30, 2024, a decrease of $54.4 million, or 1.7% compared to December 31, 2023. Gross loans totaled $2.6 billion at September 30, 2024, a decrease of $95.4 million, or 3.5% compared to December 31, 2023. Deposits totaled $2.7 billion at September 30, 2024, a decrease of $48.6 million, or 1.8% compared to December 31, 2023. Brokered deposits have decreased $168.5 million or 17.7%, when compared to December 31, 2023

Period End Loan Composition			September 30, 2024						June 30,  2024						December 31, 2023						Current QTD % Change						YTD % Change
Residential Real Estate			$	45,553					$	47,875					$	50,931					(4.9)		%				(10.6)		%
Commercial Real Estate(1)			1,887,942						1,912,701						1,947,648						(1.3)						(3.1)
Construction			160,292						150,259						183,414						6.7						(12.6)
Total Real Estate Loans			2,093,787						2,110,835						2,181,993						(0.8)						(4.0)
Commercial Business			490,292						503,444						500,569						(2.6)						(2.1)
Consumer			39,126						42,906						36,045						(8.8)						8.5
Total Loans			$	2,623,205					$	2,657,185					$	2,718,607					(1.3)		%				(3.5)		%
(1) Includes owner occupied commercial real estate of $0.7 billion at September 30, 2024, June 30, 2024, and December 31, 2023, respectively.

Period End Deposit Composition			September 30, 2024						June 30,  2024						December 31, 2023						Current QTD % Change						YTD % Change
Noninterest bearing demand			$	295,552					$	328,475					$	346,172					(10.0)		%				(14.6)		%
NOW			76,413						122,112						90,829						(37.4)						(15.9)
Money Market			840,234						825,599						887,352						1.8						(5.3)
Savings			87,212						91,870						97,331						(5.1)						(10.4)
Time			1,388,760						1,294,319						1,315,073						7.3						5.6
Total Deposits			$	2,688,171					$	2,662,375					$	2,736,757					1.0		%				(1.8)		%

Shareholders’ equity totaled $267.9 million as of September 30, 2024, an increase of $2.2 million compared to December 31, 2023, primarily a result of net income of $6.8 million for the nine months ended September 30, 2024. The increase was partially offset by dividends paid of $4.7 million.

The Company's capital position was generally stable during the third quarter, with total risk-based capital, common-equity tier 1 capital and leverage ratios at 12.83%, 11.80%, and 10.24%, respectively, at September 30, 2024. The Company repurchased 9,670 shares and 85,990 shares at weighted average prices of $23.86 and $24.82 per share for the quarter and nine months ended September 30, 2024.

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We recommend reading this earnings release in conjunction with the Third Quarter 2024 Investor Presentation, located at http://investor.mybankwell.com/Presentations and included as an exhibit to our October 28, 2024 Current Report on Form 8-K.

Conference Call

Bankwell will host a conference call to discuss the Company’s financial results and business outlook on October 29, 2024, at 10:00 a.m. E.T. The call will be accessible by telephone and webcast using https://investor.mybankwell.com/news-market-data/event-calendar/default.aspx. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event.

About Bankwell Financial Group

Bankwell Financial Group, Inc. is the holding company for Bankwell Bank (“Bankwell”). Bankwell is a full-service Commercial Bank, established in 2013. Headquartered in New Canaan, CT, Bankwell serves customers nationwide, delivering unmatched accessibility, expertise, and responsiveness. Bankwell offers an array of commercial financing products, including Working Capital lines of credit, SBA loans, Acquisition loans, and Commercial mortgages, in addition to digital and physical treasury management and deposit services.

For more information about this press release, interested parties may contact Christopher R. Gruseke, President and Chief Executive Officer or Courtney E. Sacchetti, Executive Vice President and Chief Financial Officer of Bankwell Financial Group at (203) 652-0166 or at ir@mybankwell.com.

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 increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the banking industry or securities markets, 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 assets, tangible common equity to tangible assets, tangible common shareholders' equity, fully diluted tangible book value per common share, adjusted noninterest expense, operating revenue, efficiency ratio, average tangible common equity, annualized return on average tangible common equity, return on average assets, return on average shareholders' equity, pre-tax, pre-provision net revenue, net interest margin, net loan charge-offs as a percentage of average loans, pre-tax, pre-provision net revenue on average assets, and the dividend payout ratio 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.

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BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS (unaudited)

(Dollars in thousands)

									September 30, 2024						June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023
ASSETS
Cash and due from banks									$	275,829					$	234,277					$	245,043					$	267,521					$	256,973
Federal funds sold									15,508						17,103						2,584						1,636						1,122
Cash and cash equivalents									291,337						251,380						247,627						269,157						258,095
Investment securities
Marketable equity securities, at fair value									2,148						2,079						2,069						2,070						1,975
Available for sale investment securities, at fair value									108,866						107,635						108,417						109,736						97,907
Held to maturity investment securities, at amortized cost									34,886						28,286						15,739						15,817						15,885
Total investment securities									145,900						138,000						126,225						127,623						115,767
Loans receivable (net of ACL-Loans of $27,752, $36,083, $27,991, $27,946, and $29,284 at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively)									2,591,551						2,616,691						2,646,686						2,685,301						2,735,242
Accrued interest receivable									14,714						14,675						15,104						14,863						15,648
Federal Home Loan Bank stock, at cost									5,655						5,655						5,655						5,696						5,696
Premises and equipment, net									24,780						25,599						26,161						27,018						26,899
Bank-owned life insurance									52,443						52,097						51,764						51,435						51,119
Goodwill									2,589						2,589						2,589						2,589						2,589
Deferred income taxes, net									9,300						11,345						9,137						9,383						9,395
Other assets									22,811						23,623						24,326						22,417						29,326
Total assets									$	3,161,080					$	3,141,654					$	3,155,274					$	3,215,482					$	3,249,776
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits
Noninterest bearing deposits									$	293,195					$	328,475					$	376,248					$	346,172					$	345,433
Interest bearing deposits									2,394,976						2,333,900						2,297,274						2,390,585						2,423,193
Total deposits									2,688,171						2,662,375						2,673,522						2,736,757						2,768,626
Advances from the Federal Home Loan Bank									90,000						90,000						90,000						90,000						90,000
Subordinated debentures									69,389						69,328						69,266						69,205						69,143
Accrued expenses and other liabilities									45,594						52,975						54,454						53,768						64,145
Total liabilities									2,893,154						2,874,678						2,887,242						2,949,730						2,991,914
Shareholders’ equity
Common stock, no par value									118,429						118,037						118,401						118,247						117,181
Retained earnings									151,257						150,895						151,350						149,169						142,205
Accumulated other comprehensive (loss)									(1,760)						(1,956)						(1,719)						(1,664)						(1,524)
Total shareholders’ equity									267,926						266,976						268,032						265,752						257,862
Total liabilities and shareholders’ equity									$	3,161,080					$	3,141,654					$	3,155,274					$	3,215,482					$	3,249,776

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BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

(Dollars in thousands, except share data)

									For the Quarter Ended																														For the Nine Months Ended
									September 30, 2024						June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023						September 30, 2024						September 30, 2023
Interest and dividend income
Interest and fees on loans									$	43,596					$	43,060					$	43,325					$	44,122					$	43,854					$	129,981					$	126,059
Interest and dividends on securities									1,390						1,190						1,130						1,108						1,016						3,710						3,018
Interest on cash and cash equivalents									3,205						3,429						3,826						4,164						3,393						10,460						9,983
Total interest and dividend income									48,191						47,679						48,281						49,394						48,263						144,151						139,060
Interest expense
Interest expense on deposits									25,579						24,677						25,362						25,307						23,789						75,618						61,599
Interest expense on borrowings									1,895						1,783						1,772						1,842						1,783						5,450						5,238
Total interest expense									27,474						26,460						27,134						27,149						25,572						81,068						66,837
Net interest income									20,717						21,219						21,147						22,245						22,691						63,083						72,223
Provision (credit) for credit losses									6,296						8,183						3,683						(960)						(1,579)						18,162						1,826
Net interest income after provision (credit) for credit losses									14,421						13,036						17,464						23,205						24,270						44,921						70,397
Noninterest income
Bank owned life insurance									346						333						329						316						303						1,008						876
Service charges and fees									575						495						304						688						294						1,374						941
Gains and fees from sales of loans									133						45						321						79						237						499						1,893
Other									102						(190)						(39)						46						(48)						(127)						3
Total noninterest income									1,156						683						915						1,129						786						2,754						3,713
Noninterest expense
Salaries and employee benefits									6,223						6,176						6,291						6,088						6,036						18,690						18,507
Occupancy and equipment									2,334						2,238						2,322						2,231						2,146						6,894						6,434
Professional services									1,142						989						1,065						1,033						491						3,196						2,505
Data processing									851						755						740						747						741						2,346						2,141
Director fees									292						306						900						605						362						1,498						1,207
FDIC insurance									853						705						930						1,026						1,026						2,488						3,138
Marketing									73						90						114						139						184						277						512
Other									1,097						986						935						995						1,219						3,018						3,093
Total noninterest expense									12,865						12,245						13,297						12,864						12,205						38,407						37,537
Income before income tax expense									2,712						1,474						5,082						11,470						12,851						9,268						36,573
Income tax expense									786						356						1,319						2,946						3,074						2,461						8,434
Net income									$	1,926					$	1,118					$	3,763					$	8,524					$	9,777					$	6,807					$	28,139
Earnings Per Common Share:
Basic									$	0.24					$	0.14					$	0.48					$	1.09					$	1.25					$	0.86					$	3.61
Diluted									$	0.24					$	0.14					$	0.48					$	1.09					$	1.25					$	0.86					$	3.58
Weighted Average Common Shares Outstanding:
Basic									7,715,040						7,747,675						7,663,521						7,603,938						7,598,230						7,708,768						7,582,272
Diluted									7,720,895						7,723,888						7,687,679						7,650,451						7,633,934						7,731,454						7,646,837
Dividends per common share									$	0.20					$	0.20					$	0.20					$	0.20					$	0.20					$	0.60					$	0.60

8

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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									September 30, 2024						June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023
Total Equity									$	267,926					$	266,976					$	268,032					$	265,752					$	257,862
Less:
Goodwill									2,589						2,589						2,589						2,589						2,589
Other intangibles									—						—						—						—						—
Tangible Common Equity									$	265,337					$	264,387					$	265,443					$	263,163					$	255,273
Total Assets									$	3,161,080					$	3,141,654					$	3,155,274					$	3,215,482					$	3,249,776
Less:
Goodwill									2,589						2,589						2,589						2,589						2,589
Other intangibles									—						—						—						—						—
Tangible Assets									$	3,158,491					$	3,139,065					$	3,152,685					$	3,212,893					$	3,247,187
Tangible Common Equity to Tangible Assets									8.40		%				8.42		%				8.42		%				8.19		%				7.86		%

									As of
Computation of Fully Diluted Tangible Book Value per Common Share									September 30, 2024						June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023
Total shareholders' equity									$	267,926					$	266,976					$	268,032					$	265,752					$	257,862
Less:
Preferred stock									—						—						—						—						—
Common shareholders' equity									$	267,926					$	266,976					$	268,032					$	265,752					$	257,862
Less:
Goodwill									2,589						2,589						2,589						2,589						2,589
Other intangibles									—						—						—						—						—
Tangible common shareholders' equity									$	265,337					$	264,387					$	265,443					$	263,163					$	255,273
Common shares issued and outstanding									7,858,573						7,866,499						7,908,180						7,882,616						7,841,616
Fully Diluted Tangible Book Value per Common Share									$	33.76					$	33.61					$	33.57					$	33.39					$	32.55

9

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BANKWELL FINANCIAL GROUP, INC.

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

(Dollars in thousands)

			For the Quarter Ended
			September 30, 2024																		September 30, 2023
			Average Balance						Interest						Yield/ Rate (4)						Average Balance						Interest						Yield/ Rate (4)
Assets:
Cash and Fed funds sold			$	253,664					$	3,205					5.03		%				$	265,115					$	3,393					5.08		%
Securities(1)			147,431						1,390						3.78						127,229						953						3.00
Loans:
Commercial real estate			1,905,506						28,288						5.81						1,943,725						28,140						5.67
Residential real estate			47,481						736						6.20						53,966						671						4.97
Construction			156,273						3,070						7.69						209,154						3,908						7.31
Commercial business			512,507						10,783						8.23						539,185						10,394						7.54
Consumer			41,845						719						6.84						44,020						741						6.66
Total loans			2,663,612						43,596						6.40						2,790,050						43,854						6.15
Federal Home Loan Bank stock			5,655						122						8.32						5,696						115						8.13
Total earning assets			3,070,362						$	48,313					6.16		%				3,188,090						$	48,315					5.93		%
Other assets			90,410																		78,089
Total assets			$	3,160,772																	$	3,266,179
Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW			$	94,958					$	45					0.18		%				$	102,149					$	47					0.18		%
Money market			832,430						8,597						4.11						922,036						9,064						3.90
Savings			89,463						691						3.07						105,366						817						3.08
Time			1,347,857						16,246						4.79						1,322,074						13,861						4.16
Total interest bearing deposits			2,364,708						25,579						4.30						2,451,625						23,789						3.85
Borrowed Money			159,349						1,895						4.73						159,103						1,783						4.39
Total interest bearing liabilities			2,524,057						$	27,474					4.33		%				2,610,728						$	25,572					3.89		%
Noninterest bearing deposits			303,213																		345,988
Other liabilities			62,602																		54,136
Total liabilities			2,889,872																		3,010,852
Shareholders' equity			270,900																		255,327
Total liabilities and shareholders' equity			$	3,160,772																	$	3,266,179
Net interest income(2)									$	20,839																	$	22,743
Interest rate spread															1.83		%																2.04		%
Net interest margin(3)															2.72		%																2.85		%

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

(2)The adjustment for securities and loans taxable equivalency amounted to $122 thousand and $52 thousand for the quarters ended September 30, 2024 and 2023, 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.

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BANKWELL FINANCIAL GROUP, INC.

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

(Dollars in thousands)

			For the Nine Months Ended
			September 30, 2024																		September 30, 2023
			Average Balance						Interest						Yield/ Rate (4)						Average Balance						Interest						Yield/ Rate (4)
Assets:
Cash and Fed funds sold			$	273,138					$	10,460					5.12		%				$	281,033					$	9,983					4.75		%
Securities(1)			139,871						3,592						3.42						128,554						2,864						2.97
Loans:
Commercial real estate			1,909,390						84,582						5.82						1,932,549						79,958						5.46
Residential real estate			48,912						2,226						6.07						56,798						1,957						4.59
Construction			158,884						8,913						7.37						194,396						10,582						7.18
Commercial business			517,880						32,097						8.14						546,329						32,073						7.74
Consumer			41,383						2,162						6.98						30,571						1,489						6.51
Total loans			2,676,449						129,980						6.38						2,760,643						126,059						6.02
Federal Home Loan Bank stock			5,670						358						8.43						5,527						308						7.46
Total earning assets			3,095,128						$	144,390					6.13		%				3,175,757						$	139,214					5.78		%
Other assets			92,249																		66,342
Total assets			$	3,187,377																	$	3,242,099
Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW			$	97,970					$	133					0.18		%				$	97,741					$	127					0.17		%
Money market			849,860						26,294						4.13						910,840						23,532						3.45
Savings			91,135						2,093						3.07						117,984						2,404						2.72
Time			1,319,031						47,097						4.77						1,291,124						35,536						3.68
Total interest bearing deposits			2,357,996						75,617						4.28						2,417,689						61,599						3.41
Borrowed Money			159,288						5,450						4.57						161,166						5,238						4.29
Total interest bearing liabilities			2,517,284						$	81,067					4.30		%				2,578,855						$	66,837					3.47		%
Noninterest bearing deposits			336,129																		374,943
Other liabilities			62,631																		40,192
Total liabilities			2,916,044																		2,993,990
Shareholders' equity			271,333																		248,109
Total liabilities and shareholders' equity			$	3,187,377																	$	3,242,099
Net interest income(2)									$	63,323																	$	72,377
Interest rate spread															1.83		%																2.31		%
Net interest margin(3)															2.73		%																3.04		%

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

(2)The adjustment for securities and loans taxable equivalency amounted to $240 thousand and $154 thousand for the nine months ended September 30, 2024 and 2023, 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.

11