Document

EX-99.1 2 ex991q42025earningsrelease.htm EX-99.1 Document

BANKWELL FINANCIAL GROUP REPORTS OPERATING RESULTS FOR THE FOURTH QUARTER, DECLARES FIRST QUARTER DIVIDEND

New Canaan, CT – January 29, 2026 – Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $9.1 million, or $1.15 per share for the fourth quarter of 2025, versus $10.1 million, or $1.27 per share, for the third quarter of 2025. The Company's Board of Directors declared a $0.20 per share cash dividend, payable February 20, 2026 to shareholders of record on February 10, 2026.

Reported fourth quarter of 2025 GAAP net income reflects $1.5 million of one-time income tax expense related to adjustments to the income tax provision, primarily due to the finalization of state tax filings and changes in estimated tax positions associated with the Company’s expanded state-level footprint. These adjustments relate to both current- and prior‑year tax estimates.

Reported GAAP net income of $9.1 million, or $10.7 million on an operating basis(1), for the fourth quarter of 2025.

Reported diluted earnings per share was $1.15, or $1.36 on an operating basis(1), for the fourth quarter of 2025.

Reported return on average assets was 1.11%, or 1.29% on an operating basis(1), for the fourth quarter of 2025.

Reported return on average tangible shareholders' equity was 12.31%, or 14.32% on an operating basis(1), for the fourth quarter of 2025.

Discussion of Outlook; Bankwell Financial Group Chief Executive Officer, Christopher R. Gruseke:

"We finished the year in strong fashion, reporting operating net income of $1.36 per share for the 4th quarter and Pre-tax, pre-provision net revenue return on average assets of 1.80%. GAAP Net Income of $1.15 per share for the quarter includes a one-time adjustment for multiple years’ state level tax provisioning outside of our home state of Connecticut.

We entered the year with a clear set of priorities: strengthen credit, improve the funding mix, build non-interest income, generate high‑quality growth, and embrace an innovative mindset as we continue to invest in our people and in technology and I’m pleased to say that we delivered on each of these priorities.

Building on the work accomplished this year we are pleased to provide the following guidance for 2026:

We expect loan growth of 4 to 5 percent. We anticipate net interest income in the range of $111 to $112 million. We also expect non-interest income to increase to approximately $11 to $12 million. Regarding expenses, we estimate total non-interest expense of $64 to $65 million, which incorporates a prudent level of ongoing investment in our people, infrastructure, and operational capabilities. We are confident that our increased investments will continue to provide further operating leverage; our guidance yields an efficiency ratio of approximately 51% to 53%, versus 54.1% in 2025."

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

Key Points for Fourth Quarter and Bankwell’s Outlook

Credit Quality Improves Amid Solid Loan Growth.

•$121.9 million net loan growth during the quarter ended December 31, 2025, resulting in $134.2 million, or 5.0%, growth compared to the year ended December 31, 2024.

•As of December 31, 2025, nonperforming assets as a percentage of total assets improved to 0.49%, compared to 0.56% as of September 30, 2025. Nonperforming assets have declined $1.9 million from the third quarter, mainly driven by the sale of an OREO property for $1.3 million and the collection of $0.4 million on an SBA guarantee.

Net Interest Margin Expands on Lower Deposit Costs and Improved Mix.

•Reported Net Interest Margin was 3.40% for the fourth quarter of 2025, an increase of 6 basis points from the third quarter of 2025. Earning asset yields declined 11 basis points from the third quarter of 2025 to 6.23% while deposit costs decreased 15 basis points to 3.15% over the same period.

•During the quarter ended December 31, 2025, average low-cost deposits increased by $21.6 million compared to the third quarter of 2025 and by $85.9 million compared to the same period in the prior year.

Advancing Key Strategic Priorities.

•SBA loan sale gains increased to $2.2 million in the fourth quarter of 2025, compared to $1.4 million in the third quarter of 2025. The SBA Lending division delivered $24.3 million in originations in the fourth quarter of 2025, bringing the total year originations to $68.3 million.

•As a result of SBA loan sale gains, noninterest income as a percentage of revenue increased to 11.13% in the fourth quarter of 2025, compared to 8.76% in the third quarter of 2025.

•For the fourth quarter of 2025, the Company realized an efficiency ratio(1) of 50.8%, compared to 51.4% for the third quarter of 2025.

Fourth Quarter 2025 Financial Highlights and Key Performance Indicators (KPIs):


	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
Return on average assets(1)(6)	1.11		%	1.24		%	1.14		%	0.86		%	0.37		%
Pre-tax, pre-provision net revenue return on average assets(1)(6)	1.80		%	1.70		%	1.43		%	1.18		%	1.05		%
Return on average shareholders' equity(1)(6)	12.20		%	13.84		%	12.98		%	10.16		%	4.35		%
Return on average tangible shareholders' equity(1)(6)	12.31		%	13.96		%	13.10		%	10.25		%	4.40		%
Net Interest Margin(1)(6)(7)	3.40		%	3.34		%	3.10		%	2.81		%	2.60		%
Efficiency Ratio(1)(3)	50.8		%	51.4		%	56.1		%	59.9		%	56.4		%
Noninterest expense to average assets(1)(6)	1.87		%	1.80		%	1.83		%	1.76		%	1.56		%
Net loan (recoveries) charge-offs as a percentage of average loans(1)(6)	0.00		%	(0.01)		%	0.00		%	0.00		%	0.11		%
Dividend payout(1)(4)	17.39		%	15.75		%	17.39		%	22.99		%	54.05		%
Fully diluted tangible book value per common share(1)(2)	$	37.84		$	36.84		$	35.65		$	34.56		$	34.09
Total capital to risk-weighted assets(1)(5)	12.94		%	13.48		%	13.28		%	13.22		%	12.70		%
Total common equity tier 1 capital to risk-weighted assets(1)(5)	11.87		%	12.39		%	12.20		%	12.11		%	11.64		%
Tier I Capital to Average Assets(1)(5)	10.55		%	10.71		%	10.57		%	10.13		%	10.09		%
Tangible common equity to tangible assets(1)(2)	8.90		%	8.95		%	8.68		%	8.57		%	8.20		%
Earnings per common share - diluted	$	1.15		$	1.27		$	1.15		$	0.87		$	0.37
Common shares issued and outstanding	7,899,943			7,877,443			7,873,387			7,888,013			7,859,873

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

(2) Refer to the "Reconciliation of GAAP to Non-GAAP Measures" section of this document for additional detail.

(3) 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.

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

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

(6) Return on average assets is calculated by dividing annualized net income by average assets. Pre-tax, pre-provision net revenue return on average is calculated by dividing PPNR (using the "Pre-Tax, Pre-Provision Net Revenue (PPNR)" section of this document) by average assets. Return on average shareholders' equity is calculated by dividing annualized net income by average shareholders' equity. Return on average tangible shareholders' equity is calculated by dividing annualized net income by average shareholders' equity less average intangible assets. Net Interest Margin is calculated by dividing average annualized net interest income by average total earning assets. Noninterest expense to average assets is calculated by dividing annualized noninterest expense by average total assets. Net loan charge-offs as a percentage of average loans is calculated by dividing net loan (charge offs) recoveries by average total loans.

(7) Based on a fully tax equivalent basis.

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

PPNR for the fourth quarter ended December 31, 2025 was $14.9 million, an increase of 7.2% from $13.9 million recognized for the third quarter ended September 30, 2025.


	For the Quarter Ended
(Dollars in thousands)	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
Net interest income	$	26,946	$	25,987	$	23,936	$	22,066	$	20,199
Total noninterest income	3,376		2,495		2,012		1,505		964
Total revenues	30,322		28,482		25,948		23,571		21,163
Total noninterest expense	15,470		14,631		14,546		14,141		12,644
PPNR	$	14,852	$	13,851	$	11,402	$	9,430	$	8,519

(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 December 31, 2025 were $30.3 million, compared with $28.5 million in the previous quarter. The increase in revenues for the quarter ended December 31, 2025 was mainly attributable lower funding costs. Additional favorability for the quarter ended December 31, 2025 resulted from increased gains on SBA loan sales,reflecting higher sales volume.

Net Interest Margin

The Net Interest Margin (fully taxable equivalent basis) for the quarters ended December 31, 2025 and September 30, 2025 was 3.40% and 3.34%, respectively. The increase in the Net Interest Margin is mainly due to lower cost of interest bearing deposits.

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

The ACL-Loans was $30.7 million as of December 31, 2025 compared to $30.0 million as of September 30, 2025. The ACL-Loans as a percentage of total loans was 1.08% as of December 31, 2025 compared to 1.10% as of September 30, 2025.

The provision for credit losses - loans was $0.7 million for the quarter ended December 31, 2025. Total nonperforming loans decreased $0.7 million to $16.3 million as of December 31, 2025, when compared to the previous quarter. Nonperforming assets as a percentage of total assets decreased to 0.49% at December 31, 2025, compared to the previous quarter's ratio of 0.56%.

BANKWELL FINANCIAL GROUP, INC.

ASSET QUALITY (unaudited)

(Dollars in thousands)


	For the Quarter Ended
	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
ACL-Loans:
Balance at beginning of period	$	29,984	$	29,256	$	29,485	$	29,007	$	27,752
Charge-offs:
Residential real estate	—		—		—		—		—
Commercial real estate	—		—		—		(67)		(1,100)
Commercial business	—		(14)		(15)		—		(703)
Consumer	—		(46)		(5)		(33)		(5)
Construction	—		—		—		—		(1,155)
Total charge-offs	—		(60)		(20)		(100)		(2,963)
Recoveries:
Residential real estate	—		—		—		—		—
Commercial real estate	7		272		—		—		—
Commercial business	23		92		112		4		4
Consumer	10		4		10		36		5
Construction	—		—		—		—		—
Total recoveries	40		368		122		40		9
Net loan recoveries (charge-offs)	40		308		102		(60)		(2,954)
Provision (credit) for credit losses - loans	681		420		(331)		538		4,209
Balance at end of period	$	30,705	$	29,984	$	29,256	$	29,485	$	29,007


	As of
	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
Asset quality:
Nonaccrual loans
Residential real estate	$	557		$	570		$	617		$	811		$	791
Commercial real estate	14,445			14,667			16,387			17,946			44,814
Commercial business	1,302			1,729			6,871			7,626			7,672
Construction	—			—			—			—			—
Consumer	—			—			—			—			—
Total nonaccrual loans	16,304			16,966			23,875			26,383			53,277
Other real estate owned	—			1,284			1,284			—			8,299
Total nonperforming assets	$	16,304		$	18,250		$	25,159		$	26,383		$	61,576

Nonperforming loans as a % of total loans	0.57		%	0.62		%	0.89		%	1.00		%	1.97		%
Nonperforming assets as a % of total assets	0.49		%	0.56		%	0.78		%	0.83		%	1.88		%
ACL-loans as a % of total loans	1.08		%	1.10		%	1.10		%	1.11		%	1.07		%
ACL-loans as a % of nonperforming loans	188.33		%	176.73		%	122.54		%	111.76		%	54.44		%
Total past due loans to total loans	0.31		%	0.76		%	0.91		%	1.08		%	1.63		%

Financial Condition & Capital

Assets totaled $3.4 billion at December 31, 2025, an increase of $91.4 million, or 2.8% compared to December 31, 2024. Gross loans totaled $2.8 billion at December 31, 2025, an increase of $134.2 million, or 5.0% compared to December 31, 2024. Deposits totaled $2.8 billion at December 31, 2025, an increase of $41.9 million, or 1.5% compared to December 31, 2024. Brokered deposits have decreased $146.3 million or 20.7%, when compared to December 31, 2024.


Period End Loan Composition	December 31, 2025		September 30, 2025		December 31, 2024		Current QTD % Change		Year over Year % Change
Residential Real Estate	$	33,139	$	33,625	$	42,766	(1.4)	%	(22.5)	%
Commercial Real Estate(1)	1,930,979		1,897,896		1,899,134		1.7		1.7
Construction	153,778		170,888		173,555		(10.0)		(11.4)
Total Real Estate Loans	2,117,896		2,102,409		2,115,455		0.7		0.1

Commercial Business	645,321		552,682		515,125		16.8		25.3

Consumer	76,855		63,098		75,308		21.8		2.1
Total Loans	$	2,840,072	$	2,718,189	$	2,705,888	4.5	%	5.0	%

(1) Includes owner occupied commercial real estate of $0.8 billion at December 31, 2025, $0.8 billion at September 30, 2025, and $0.7 billion at December 31, 2024, respectively.


Period End Deposit Composition	December 31, 2025		September 30, 2025		December 31, 2024		Current QTD % Change		Year over Year % Change
Noninterest bearing demand	$	403,652	$	397,408	$	321,875	1.6	%	25.4	%
NOW	90,205		84,736		105,090		6.5		(14.2)
Money Market	1,007,844		897,387		899,413		12.3		12.1
Savings	97,418		95,242		90,220		2.3		8.0
Time	1,230,362		1,282,642		1,370,972		(4.1)		(10.3)
Total Deposits	$	2,829,481	$	2,757,415	$	2,787,570	2.6	%	1.5	%

Shareholders’ equity totaled $301.5 million as of December 31, 2025, an increase of $31.0 million compared to December 31, 2024, primarily a result of year to date net income of $35.2 million. The increase was partially offset by dividends paid of $6.3 million.

As of December 31, 2025, the Bank's regulatory capital ratios were all above 'well capitalized' values, with total risk-based capital, common-equity tier 1 capital and leverage ratios at 12.94%, 11.87%, and 10.55%, respectively.

We recommend reading this earnings release in conjunction with the Fourth Quarter 2025 Investor Presentation, located at https://investor.mybankwell.com/events-and-presentations/ and included as an exhibit to our January 29, 2026 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 January 29, 2026, at 11:00 a.m. E.T. The call will be accessible by telephone and webcast using https://investor.mybankwell.com/events-and-presentations/. 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"), a full-service commercial bank headquartered in New Canaan, CT. Bankwell offers its customers unmatched accessibility, expertise, and responsiveness through a range of commercial financing products including working capital lines of credit, SBA loans, acquisition loans, and commercial mortgages as well as treasury management and deposit services.

For more information about this press release, interested parties may contact Christopher R. Gruseke, 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, operating revenue, efficiency ratio, noninterest expense to average assets, average tangible common equity, annualized return on average tangible shareholders' equity, return on average assets, operating basis return on average assets, return on average shareholders' equity, operating basis return on average tangible 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, adjusted average equity, operating basis diluted earnings per share, operating net income, 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. See "Reconciliation of GAAP to Non-GAAP Measures (unaudited)".

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS (unaudited)

(Dollars in thousands)


	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
ASSETS
Cash and due from banks	$	214,567	$	289,628	$	313,998	$	292,006	$	293,552
Federal funds sold	10,354		5,732		8,466		12,922		13,972
Cash and cash equivalents	224,921		295,360		322,464		304,928		307,524

Investment securities
Marketable equity securities, at fair value	2,248		2,223		2,188		2,164		2,118
Available for sale investment securities, at fair value	160,409		96,473		103,930		97,321		107,428
Held to maturity investment securities, at amortized cost	29,465		29,538		36,434		36,478		36,553
Total investment securities	192,122		128,234		142,552		135,963		146,099
Loans receivable (net of ACL-Loans of $30,705, $29,984, $29,256, $29,485, and $29,007, at December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, respectively)	2,804,441		2,684,016		2,635,742		2,611,495		2,672,959
Accrued interest receivable	16,143		15,633		14,741		15,409		14,535
Federal Home Loan Bank stock, at cost	6,207		4,951		5,051		3,583		5,655
Premises and equipment, net	21,582		22,387		23,020		22,978		23,856
Bank-owned life insurance	54,207		53,846		53,488		53,136		52,791
Goodwill	2,589		2,589		2,589		2,589		2,589
Deferred income taxes, net	11,356		9,027		9,684		9,551		9,742
Other real estate owned	—		1,284		1,284		—		8,299
Other assets	26,291		26,636		25,978		24,261		24,427
Total assets	$	3,359,859	$	3,243,963	$	3,236,593	$	3,183,893	$	3,268,476

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits
Noninterest bearing deposits	$	403,652	$	397,408	$	397,195	$	349,525	$	321,875
Interest bearing deposits	2,425,829		2,360,007		2,362,086		2,400,920		2,465,695
Total deposits	2,829,481		2,757,415		2,759,281		2,750,445		2,787,570

Advances from the Federal Home Loan Bank	110,000		75,000		75,000		40,000		90,000
Subordinated debentures	69,697		69,636		69,574		69,513		69,451
Accrued expenses and other liabilities	49,192		49,121		49,448		48,721		50,935
Total liabilities	3,058,370		2,951,172		2,953,303		2,908,679		2,997,956

Shareholders’ equity
Common stock, no par value	120,118		119,353		118,698		118,439		119,108
Retained earnings	181,587		174,008		165,495		157,971		152,656
Accumulated other comprehensive (loss)	(216)		(570)		(903)		(1,196)		(1,244)
Total shareholders’ equity	301,489		292,791		283,290		275,214		270,520

Total liabilities and shareholders’ equity	$	3,359,859	$	3,243,963	$	3,236,593	$	3,183,893	$	3,268,476

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, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024			December 31, 2025		December 31, 2024
Interest and dividend income
Interest and fees on loans	$	46,739	$	46,328	$	44,128	$	43,475	$	42,851		$	180,670	$	172,832
Interest and dividends on securities	1,834		1,410		1,478		1,445		1,482			6,167		5,192
Interest on cash and cash equivalents	2,037		2,853		3,043		3,557		3,510			11,490		13,970
Total interest and dividend income	50,610		50,591		48,649		48,477		47,843			198,327		191,994

Interest expense
Interest expense on deposits	22,388		22,585		23,083		24,772		25,640			92,828		101,258
Interest expense on borrowings	1,276		2,019		1,630		1,639		2,004			6,564		7,454
Total interest expense	23,664		24,604		24,713		26,411		27,644			99,392		108,712

Net interest income	26,946		25,987		23,936		22,066		20,199			98,935		83,282
Provision (credit) for credit losses	616		372		(411)		463		4,458			1,040		22,620
Net interest income after provision (credit) for credit losses	26,330		25,615		24,347		21,603		15,741			97,895		60,662

Noninterest income
Bank owned life insurance	361		359		352		344		348			1,416		1,356
Service charges and fees	771		779		674		602		589			2,826		1,963


Gains and fees from sales of loans	2,184		1,372		1,080		442		24			5,078		523
Other	60		(15)		(94)		117		3			68		(124)
Total noninterest income	3,376		2,495		2,012		1,505		964			9,388		3,718

Noninterest expense
Salaries and employee benefits	7,717		7,995		7,521		7,052		5,056			30,285		23,746
Occupancy and equipment	2,575		2,469		2,505		2,575		2,600			10,124		9,494
Professional services	1,415		1,412		1,632		1,529		1,286			5,988		4,482
Data processing	877		633		712		885		905			3,107		3,251
Director fees	337		333		333		348		342			1,351		1,840
FDIC insurance	612		610		684		779		862			2,685		3,350
Marketing	108		140		218		142		175			608		452

Other	1,829		1,039		941		831		1,418			4,640		4,436
Total noninterest expense	15,470		14,631		14,546		14,141		12,644			58,788		51,051

Income before income tax expense	14,236		13,479		11,813		8,967		4,061			48,495		13,329
Income tax expense	5,092		3,401		2,725		2,079		1,098			13,297		3,559
Net income	$	9,144	$	10,078	$	9,088	$	6,888	$	2,963		$	35,198	$	9,770

Earnings Per Common Share:
Basic	$	1.16	$	1.28	$	1.16	$	0.88	$	0.37		$	4.49	$	1.24
Diluted	$	1.15	$	1.27	$	1.15	$	0.87	$	0.37		$	4.45	$	1.23

Weighted Average Common Shares Outstanding:
Basic	7,776,740		7,774,887		7,777,469		7,670,224		7,713,970			7,750,191		7,710,076
Diluted	7,858,047		7,844,785		7,819,829		7,740,521		7,727,412			7,826,280		7,737,952
Dividends per common share	$	0.20	$	0.20	$	0.20	$	0.20	$	0.20		$	0.80	$	0.80

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, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
Total Equity	$	301,489		$	292,791		$	283,290		$	275,214		$	270,520
Less:
Goodwill	2,589			2,589			2,589			2,589			2,589
Other intangibles	—			—			—			—			—
Tangible Common Equity	$	298,900		$	290,202		$	280,701		$	272,625		$	267,931

Total Assets	$	3,359,859		$	3,243,963		$	3,236,593		$	3,183,893		$	3,268,476
Less:
Goodwill	2,589			2,589			2,589			2,589			2,589
Other intangibles	—			—			—			—			—
Tangible Assets	$	3,357,270		$	3,241,374		$	3,234,004		$	3,181,304		$	3,265,887

Tangible Common Equity to Tangible Assets	8.90		%	8.95		%	8.68		%	8.57		%	8.20		%


	As of
Computation of Fully Diluted Tangible Book Value per Common Share	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
Total shareholders' equity	$	301,489	$	292,791	$	283,290	$	275,214	$	270,520
Less:
Preferred stock	—		—		—		—		—
Common shareholders' equity	$	301,489	$	292,791	$	283,290	$	275,214	$	270,520
Less:
Goodwill	2,589		2,589		2,589		2,589		2,589
Other intangibles	—		—		—		—		—
Tangible common shareholders' equity	$	298,900	$	290,202	$	280,701	$	272,625	$	267,931

Common shares issued and outstanding	7,899,943		7,877,443		7,873,387		7,888,013		7,859,873







Fully Diluted Tangible Book Value per Common Share	$	37.84	$	36.84	$	35.65	$	34.56	$	34.09

BANKWELL FINANCIAL GROUP, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited)

(Dollars in thousands, except share data)


Computation of Operating Basis Diluted EPS, Operating Basis Return on Average Assets, Operating Basis Return on Average Equity	For the Quarter Ended
(Dollars in thousands)	December 31, 2025
Net Income	$	9,144
Income tax expenses related to a Return-to-provision true-up	855
Updates to the reserve for uncertain tax positions methodology change and state-level presence	692
Operating Net Income	$	10,691

Weighted Average Common Shares Outstanding:
Diluted	7,858,047
Operating Diluted EPS	$	1.36

Average Assets	$	3,277,608
Operating Basis Return on Average Assets	1.29		%

Adjusted Average Tangible Equity	$	296,140
Operating Basis Return on Average Tangible Shareholders' Equity	14.32		%

BANKWELL FINANCIAL GROUP, INC.

EARNINGS PER SHARE ("EPS") (unaudited)

(Dollars in thousands, except share data)


	For the Quarter Ended December 31,				For the Year Ended December 31,
	2025		2024		2025		2024
	(In thousands, except per share data)
Net income	$	9,144	$	2,963	$	35,198	$	9,770
Dividends to participating securities(1)	27		(38)		106		(156)
Undistributed earnings allocated to participating securities(1)	(127)		(34)		(514)		(87)
Net income for earnings per share calculation	9,044		2,891		34,790		9,527

Weighted average shares outstanding, basic	7,776,740		7,713,970		7,750,191		7,710,076
Effect of dilutive equity-based awards(2)	81,307		13,442		76,089		27,876
Weighted average shares outstanding, diluted	7,858,047		7,727,412		7,826,280		7,737,952
Net earnings per common share:
Basic earnings per common share	$	1.16	$	0.37	$	4.49	$	1.24
Diluted earnings per common share	$	1.15	$	0.37	$	4.45	$	1.23

(1) Represents dividends paid and undistributed earnings allocated to unvested stock-based awards that contain non-forfeitable rights to dividends.

(2) Represents the effect of the assumed exercise of stock options and the vesting of restricted shares, as applicable, utilizing the treasury stock method.

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, 2025						December 31, 2024
	Average Balance		Interest		Yield/ Rate (4)		Average Balance		Interest		Yield/ Rate (4)
Assets:
Cash and Fed funds sold	$	233,348	$	2,037	3.46	%	$	313,777	$	3,510	4.45	%
Securities(1)	185,111		1,834		3.96		151,300		1,506		3.98
Loans:
Commercial real estate	1,904,755		30,454		6.26		1,896,551		28,222		5.82
Residential real estate	33,675		485		5.76		44,329		753		6.79
Construction	181,202		3,468		7.49		171,244		3,281		7.50
Commercial business	578,924		11,364		7.68		505,655		9,911		7.67
Consumer	63,762		968		6.02		43,315		684		6.29
Total loans	2,762,318		46,739		6.63		2,661,094		42,851		6.30
Federal Home Loan Bank stock	3,453		113		12.93		5,655		119		8.36
Total earning assets	3,184,230		$	50,723	6.23	%	3,131,826		$	47,986	6.00	%
Other assets	93,378						94,781
Total assets	$	3,277,608					$	3,226,607

Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW	$	95,035	$	62	0.26	%	$	90,497	$	42	0.18	%
Money market	957,209		8,571		3.55		855,522		8,472		3.94
Savings	96,566		703		2.89		88,956		692		3.10
Time	1,263,108		13,052		4.10		1,385,264		16,434		4.72
Total interest bearing deposits	2,411,918		22,388		3.68		2,420,239		25,640		4.21
Borrowed Money	110,961		1,275		4.56		159,416		2,004		5.00
Total interest bearing liabilities	2,522,879		$	23,663	3.72	%	2,579,655		$	27,644	4.27	%
Noninterest bearing deposits	404,600						322,135
Other liabilities	52,812						54,013
Total liabilities	2,980,291						2,955,803
Shareholders' equity	297,317						270,804
Total liabilities and shareholders' equity	$	3,277,608					$	3,226,607
Net interest income(2)			$	27,060					$	20,342
Interest rate spread					2.51	%					1.73	%
Net Interest Margin(3)					3.40	%					2.60	%

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

(2)The adjustment for securities and loans taxable equivalency amounted to $114 thousand and $143 thousand for the quarters ended December 31, 2025 and 2024, 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, 2025						December 31, 2024
	Average Balance		Interest		Yield/ Rate (4)		Average Balance		Interest		Yield/ Rate (4)
Assets:
Cash and Fed funds sold	$	288,987	$	11,490	3.98	%	$	283,353	$	13,970	4.93	%
Securities(1)	157,033		6,309		4.02		142,744		5,098		3.57
Loans:
Commercial real estate	1,849,502		115,827		6.18		1,905,973		112,804		5.82
Residential real estate	36,788		2,223		6.04		47,767		2,978		6.23
Construction	182,440		14,322		7.74		162,180		12,197		7.40
Commercial business	554,862		44,205		7.86		514,800		42,006		8.03
Consumer	70,186		4,092		5.83		41,869		2,847		6.80
Total loans	2,693,778		180,669		6.62		2,672,589		172,832		6.36
Federal Home Loan Bank stock	5,000		398		7.95		5,666		477		8.41
Total earning assets	3,144,798		$	198,866	6.24	%	3,104,352		$	192,377	6.09	%
Other assets	92,684						92,885
Total assets	$	3,237,482					$	3,197,237

Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW	$	100,341	$	374	0.37	%	$	96,091	$	175	0.18	%
Money market	908,304		34,149		3.76		851,283		34,767		4.08
Savings	92,637		2,728		2.95		90,587		2,785		3.07
Time	1,291,785		55,577		4.30		1,335,680		63,531		4.76
Total interest bearing deposits	2,393,067		92,828		3.88		2,373,641		101,258		4.27
Borrowed Money	138,305		6,564		4.75		159,320		7,454		4.68
Total interest bearing liabilities	2,531,372		$	99,392	3.93	%	2,532,961		$	108,712	4.29	%
Noninterest bearing deposits	368,777						332,611
Other liabilities	51,722						60,464
Total liabilities	2,951,871						2,926,036
Shareholders' equity	285,611						271,201
Total liabilities and shareholders' equity	$	3,237,482					$	3,197,237
Net interest income(2)			$	99,474					$	83,665
Interest rate spread					2.31	%					1.80	%
Net Interest Margin(3)					3.16	%					2.70	%

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

(2)The adjustment for securities and loans taxable equivalency amounted to $539 thousand and $383 thousand for the year ended December 31, 2025 and 2024, 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.