Bankwell Financial Group, Inc. Stock price
Is Bankwell Financial Group, Inc. a Top Scorer Stock based on the Dividend, High-Growth-Investing or Leverman Strategy?
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = $529.98m | Revenue (TTM) = $121.82m
Market Cap = $529.98m | Estimated Revenue = $132.95m
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = $599.80m | Revenue (TTM) = $121.82m
Enterprise Value = $599.80m | Forward Revenue = $132.95m
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF)
📈 What is it?
EV/FCF shows how many years it would take for a company to "pay back" its enterprise value using its free cash flow.
🧮 How is it calculated?
🏛️ Why is it important?
It focuses on real cash generation, ignoring accounting noise — ideal for assessing profitability and value based on liquidity, not earnings.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF may signal undervaluation and strong cash generation.
- A high EV/FCF might reflect weak recent cash flow or aggressive growth expectations.
- Best suited for stable, mature businesses with predictable free cash flows.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🧮 Calculation
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF)
📈 What is it?
Free Cash Flow shows how much actual cash remains after a company covers its operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow means the company generates real, usable cash – independent of reported net income.
- It’s often the most reliable base for sustainable dividends and buybacks.
- Declining FCF can be an early warning sign – even when profits appear stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free cash flow margin
📈 What is it?
The free cash flow (FCF) margin shows how much of a company’s revenue remains as actual free cash after covering all operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
This margin reflects the true liquidity generated by the business – independent of accounting rules or depreciation. It’s especially relevant for dividends, buybacks, and reinvestment decisions.
🧮 Calculation
🎯 What does this mean for investors?
- A high FCF margin means a company consistently generates strong cash flow.
- It’s a positive signal for financial stability and shareholder returns.
- The long-term trend is key – a declining margin may indicate rising investments or weakening operating efficiency.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Turnover per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Bankwell Financial Group, Inc. Stock Analysis
Analyst Opinions
9 Analysts have issued a Bankwell Financial Group, Inc. forecast:
Analyst Opinions
9 Analysts have issued a Bankwell Financial Group, Inc. forecast:
Bankwell Financial Group, Inc. Events
Past Events
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JUL
23
Q2 2026 Earnings Call
2 months ago
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APR
23
Q1 2026 Earnings Call
5 months ago
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JAN
29
Q4 2025 Earnings Call
8 months ago
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OCT
23
Q3 2025 Earnings Call
11 months ago
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StocksGuide Free
Bankwell Financial Group, Inc. — Q2 2026 Earnings Call
1. Management Discussion
Hello, everyone. Thank you for joining us, and welcome to the Bankwell Financial Group second quarter 2026 earnings call. [Operator Instructions] I will now hand the conference over to Courtney Sacchetti, Executive Vice President and Chief Financial Officer. Courtney, please go ahead.
Thank you. Good morning, everyone. Welcome to Bankwell's Second Quarter 2026 Earnings Conference Call. To access the call over the internet and review the presentation materials that we will reference on the call, please visit our website at investor.mybankwell.com and go to the Events and Presentations tab for supporting materials. Our second quarter earnings release is also available on our website.
Our remarks today may contain forward-looking statements and may refer to non-GAAP financial measures. All participants should refer to our SEC filings, including those found on Forms 8-K, 10-Q and 10-K for a complete discussion of forward-looking statements and any factors that could cause actual results to differ from those statements.
And now I will turn the call over to Chris Gruseke, Bankwell's Chief Executive Officer.
Thanks, Courtney. Welcome, and thank you to everyone for joining Bankwell's quarterly earnings call. This morning, I'm joined by Courtney Sacchetti, our CFO; and Matt McNeill, our President and Chief Banking Officer.
Thank you for your continued interest in Bankwell and for the chance to share our second quarter results with you. Second quarter marked another period of strong execution with meaningful margin expansion, robust core deposit and loan growth and continued progress on our strategic priorities, including the continued success of our SBA division.
For the second quarter, we reported GAAP net income of $12.4 million or $1.52 per share compared to $11.3 million or $1.41 per share for Q1. Loan growth accelerated this quarter with balances growing by $93 million or by 3.2% sequentially. Gross loans stood at $3 billion at quarter end as new originations continue to outpace portfolio runoff. Core deposits increased by $128 million during the quarter. Importantly, this includes $72 million of growth in noninterest bearing and NOW accounts. Growth in noninterest bearing deposits included approximately $44 million in increased annualized checking balances. On a year-to-date basis, annualized checking has grown by approximately $68 million or roughly 17%.
In addition to funding loan growth, our strong performance in growing core deposits has enabled us to reduce wholesale funding by $44 million this quarter. Since its peak at the end of 2022, we've now reduced brokered balances by $520 million or by roughly 51%. This continued progress is a result of strong execution across the entire franchise as we continue to strengthen our funding base and deepen client relationships.
Compared to the same quarter in the prior year, core deposits have grown by $356 million or by 19%. The net interest margin was 358 basis points, an expansion of 30 basis points from the prior quarter, driven by favorable repricing dynamics on both sides of the balance sheet. Courtney will walk through those details in a couple of minutes.
Noninterest income remained a meaningful contributor to our results, totaling $3.3 million for the quarter. This was led by our SBA division, which contributed $2.4 million of gain on sale income. First half of this year, SBA loan sale gains were $4.8 million compared to $1.5 million in the first half of 2025. This business remains an important and growing part of diversifying our revenue stream. Credit quality continues to improve. Total nonperforming loans decreased by $3.2 million to $15.9 million and nonperforming assets as a percentage of total assets declined by 10 basis points to 46 basis points. Reserve coverage of nonperforming loans strengthened to approximately 193%.
As stewards of our shareholders' capital, our primary focus has always been to maximize tangible book value per share while balancing the risks of running our business. We've added $2.41 to tangible book value per share in the first half of 2026 to reach $40.25 per share.
Now turn the call back to Courtney to walk through the financial results in more detail.
Thanks, Chris. Profitability for the quarter was outstanding. Return on average assets was 1.46% and return on average tangible common equity was 15.61%. Pre-provision net revenue rose 31.4% to $17.5 million or 2.07% of average assets, up from $13.3 million last quarter, driven by higher net interest income and improved efficiency. Net interest income totaled $29.5 million, up from $26.9 million in the prior quarter. Net interest margin expanded 30 basis points to 3.58%, driven by favorable repricing.
Deposit costs improved 16 basis points to 2.94%, while our earning asset yields rose 11 basis points to 6.26% as new loan production at an average rate of 7.16% continued to outpace runoff. Noninterest income totaled $3.3 million for the quarter, including $2.4 million of gains on SBA loan sales. Noninterest expense fell to $15.3 million from $16.9 million, primarily on lower salaries and benefits as the first quarter carried seasonal compensation costs. Operating leverage continued to build as evidenced by this quarter's 47.5% efficiency ratio, bringing the year-to-date ratio to 51.4%. Provision for credit losses was $1.2 million, driven by loan growth. The allowance ended the quarter at 1.03% of total loans with nonperforming loan coverage of approximately 193%.
The balance sheet remains strong. Total assets ended the quarter at $3.5 billion and deposits at $3 billion. Shareholders' equity grew to $323.5 million. And as Chris commented, our fully diluted tangible book value per share rose to $40.25. Both the bank and the holding company remain well capitalized with the bank's total capital ratio of 12.7%, Common Equity Tier 1 ratio of 11.66% and a leverage ratio of 10.36%.
Finally, we repriced $0.6 billion of time deposits in the first half of the year at a 36-basis-point improvement, representing an annualized benefit of $2.3 million. Looking ahead, that benefit will diminish as much of our higher cost time deposits have already been repriced and the remaining maturities carry rates closer to current market levels. As that benefit moderates, we are increasingly positioned towards a more rate-neutral balance sheet. Approximately 43% or $1.3 billion of our loans are now floating rate, nearly double the 23% we carried at the end of 2024. This increase in floating rate assets provides a more balanced sensitivity across a range of rate scenarios.
In the immediate term, we're modestly asset sensitive, roughly $1.6 billion of loans in cash reprice right away, while $250 million of Fed funds-indexed deposits move with them. Over the following 12 months, that gap narrows towards neutral as $1.1 billion of time deposits mature and reprice and our core nonmaturity deposits gradually adjust.
That's the financial picture for the quarter. I'll turn it back to Chris for closing remarks.
Thanks, Courtney. Our second quarter results demonstrate the earnings power of the franchise we've been building deliberately over time. In our investor presentation for Q3 of 2024, we laid out plans to invest in our deposit franchise, pay down wholesale funding, increase noninterest income and grow our consolidated Tier 1 capital ratio. We committed to invest in the people and technologies necessary for the company's ongoing success and to do so in a manner which would increase our operating leverage.
Halfway through 2026, we're excited to have seen so many of our aspirations realized. Given our first half performance and the momentum we're carrying into the second half of the year, we're pleased to increase our full year guidance across several measures. We now expect loan growth of 5% to 7% and we are raising our full year net interest income outlook to a range of $115 million to $117 million. We affirm our previous full year guidance of $12 million to $13 million for noninterest income.
Given our momentum this year, we are making targeted investments in talent and infrastructure to support continued growth and to compensate appropriately our teams for the strong performance they've delivered. Accordingly, we're raising our full year noninterest expense guide to $65 million to $67 million. With our updated revenue guidance, we expect no negative impact to our efficiency ratio from our increased expense guide. None of the progress we've achieved can happen without the people behind it.
I especially want to recognize our team whose dedication and efforts are what turn our strategy into results, our customers who place their trust in us and the shareholders who share our long-term vision. We're grateful to all of you and remain focused on delivering peer-leading results in the quarters to come.
Now operator, we are ready to open the line for questions.
[Operator Instructions] Your first question comes from the line of Feddie Strickland with Hovde Group.
2. Question Answer
Just wanted to start off really on the loan growth here. I was just wondering if you could talk a little bit about what's changed to drive the higher loan growth? And is that future growth still predominantly C&I driven like this quarter?
Can I hand that to Matt?
Really, the loan growth is a function of us raising our projections on assumptions on runoff. We had a lot of loans refinance away from us or leave the bank last year impacted our ability to grow the loan book early in the year. We looked at those assumptions and raised them. We've kept them raised through the first half of this year, and that's really been the change. Just originating more loans to fill the expected runoff.
Is any of that -- is that driven by increased activity from existing customers or reaching out to new customers? I guess I'm just trying to get a sense for maybe whether sentiment improved or anything else just as the originations increase.
We're very relationship-driven. We don't bring on large quantities of new customers. We're really focused on deepening relationships with existing customers and rinse and repeat asset classes. So it's really driven by deepening relationships with our existing customers. That's across all the health care, goes into investor CRE and C&I, all the places we originate.
So Feddie, it's more art than science. It's managing the flows. And when you have a feel for what the prepayment should be and then we look forward to the next quarter, we can prime the pump and price and speak accordingly to manage the flows.
All right. Great. That's super helpful. And switching to the other side of the balance sheet, you've made really good progress in reducing the brokered funding over the past couple of quarters. I think we're down to about 17% or so of deposits. How should we think about that brokered number over time over the next year or so? Do you think you could get that sub-10% in the next 12 months? Or is it just kind of too hard to tell at this point?
It's not too hard to tell. I think sub-10% would be -- that would sound aggressive. I think it'll come down naturally over time because we are still trying to build consolidated capital at the Holdco. So while we're on this kind of trajectory and the way it's gone in the last several quarters, it feels just like organically, we're generating more deposits than the amount of loans that we would want to book while still growing capital. So I expect to see it kind of drift down over time as that plays out. We don't have a target in mind.
Understood. And last quick question for me. Just should we expect a slight climb higher in the margin if the yield curve stays where it is, just given you've still got above portfolio yields and new production and maybe it sounds like flattish deposit costs with some of the time deposit tailwind going away?
Feddie, it's Courtney. Yes, I would expect our margin to expand a little bit more into the third quarter. We still have some room left on our time deposits in the third quarter. It's really fourth quarter and beyond where we start to see the runoff kind of matching current market rates. So we do expect margin expansion given no other changes.
Your next question comes from the line of Mark Shutley with KBW.
So I was surprised to see the expense guide move up after expense control was really strong in the quarter. I know you talked about compensation drifting higher. I just wonder if you could talk through any other puts and takes there.
Yes. So without specifics of what comprises it, in the earnings release, I think as well just now, we said that despite increasing the guide, if you have numbers worked up based on our revenue guidance prior and now current that we would not expect that to impact the efficiency ratio in a negative manner. So we're talking about -- we're really talking about scale. And as you have a year that's going well and doing better, we're pretty -- we run a meritocratic incentive plan. And if people do better, we want them to get paid. So that's -- I mean, that's a good part of the increase.
As well, we have been investing in technology and processes and bringing on additional people, but the scale is working for us. So we wouldn't -- I think early in the year, we talked about expenses. I said if we're adding expenses it's because we're making more money and we're going to return the expense.
And Chris, I will just add to that is that our guidance from the last -- the last time we gave guidance, if you did a rough calculation of what that efficiency ratio would be, it was a range of 52.8% to 51.2%. This new guidance keeps that high end. It's exactly 52.8% and lowers the best case scenario to 50%. So it is in line with -- from an efficiency ratio perspective, it actually has improved.
Okay. Great. That's helpful. And then maybe shifting over to credit, NPAs improved again. I was wondering if you could update us on sort of that remaining nonperformer bucket, and then should we expect reserves to be relatively stable from here through the year?
Our outlook on the remaining nonperforming loans is good. We see some paths to reducing that number even further in the coming quarters. I'll let Courtney comment on the reserve.
We've taken the write-downs as appropriate. We don't really carry a lot of specific reserves specifically on our real estate portfolio. So we feel it's marked appropriately based on the information we have.
Your next question comes from the line of Steve Moss with Raymond James.
Maybe just starting with just the SBA business here. You guys didn't change your guide on noninterest income, but it's definitely trending strong. And I realize probably nitpicking a little bit, but just kind of curious on any updated thoughts you have there.
I'm sorry, Steve, you broke up a little bit. Can you repeat that question?
Sorry. On the SBA -- no worries. Seems to be my phone today for some reason. On the SBA business here, gains have been trending fairly strong. I realize you guys didn't change the noninterest income guide. But just kind of curious here in terms of the business activity there and maybe if there's just some upside you want to see another quarter of trends before taking things up there.
We intentionally are keeping our SBA production controlled for -- we're still retaining a portion of non-SBA guaranteed portions of those loans. So for risk management purposes, we're going slow and steady. We don't anticipate raising our origination targets there to try to keep up with the other side of the business. It's really risk management [indiscernible] new division. We've only been after it for about 2.5 years. Although we've been originating SBA for more than 10, this new division is just 2.5 years old.
Okay. Appreciate that color there. And then the other thing here, just in terms of the health care business, just kind of curious, can you just talk about the trends you're seeing, how are businesses faring? I know there were some challenges, call it, 6 to 12 months ago in terms of the ability to refinance the permanent market and get revenues where they wanted to be. Just curious on that aspect of things and also the competitive landscape for lending into that market.
We're very particular about the states where we originate for senior housing, particularly, which is where the -- those headwinds are largely behind the industry. The places where we originate, we're seeing a lot of strength in cash flows. We're seeing growth in revenue, expenses being controlled. The expense control is largely due to having enough labor to operate the facilities and not having to go to agency.
So all of those headwinds seem to be behind the operators for now in the states where we're originating our business, and we think this is a very good time to be in the business. Other banks have now come to that conclusion as well. So the lending activity amongst other banks and nonbank lenders [indiscernible] so many people have come back to the market. So it is more competitive. We are fortunate in the fact that our customers come to us for our strong execution. That hasn't changed, and we still have as much access as we want to the market.
Okay. And just in terms of pricing, is it incrementally more competitive or kind of spreads tightened kind of materially? Just kind of curious there.
We don't often compete on price. Like I said, execution is the strong driver of our value creation for our clients. And so we keep our spreads where they are and that hasn't been a problem for us.
We also have a follow-up from Feddie Strickland of Hovde Group.
Just two quick follow-ups. One on expenses, I totally understand compensating folks for good production. But as I think through the back half of '26, I know you haven't given '27 guidance, but if we see the expenses step up in the back half on maybe some incentive comp, should I expect that to carry through into '27? Or is that kind of a onetime thing until we get through to '27? A long-winded way of asking, could we maybe see expenses step down a little bit in the first quarter of '27 after maybe a little bit higher expenses in the back half of the year? Or is this more salary related?
I would think it's more salary related. I would think that our run rate will tick up as long as our production continues on the path that it's on, right? So again, as we perform well, the company will compensate accordingly. So the expectation would be the expense rate would start to -- the run rate would start to tick up.
And that would be correlated with performance?
Yes.
So we'll come back to -- that number will grow to reflect comp incentive performance. But the only way that's going to happen is if the top line is growing and profitability metrics continue to increase. So we don't want to be in the business and won't be in the business of increasing expenses and decreasing our efficiency ratio. Just want to be clear, this is about scale.
Understood. So at the end of the day, it just sounds like I should really pay attention to efficiency really more than anything because if you've got increased revenue, you may have some increased expenses just to make sure you're compensating folks.
Yes.
Right now, we would agree with that, yes.
Okay. And one more for me. Just in terms of overall profitability, 15% ROATCE, 1.46% ROAA, really strong. Is a 1.40-ish, 1.35%, 1.40-ish ROAA a good go-forward number for you guys? I know you haven't given formal guidance on those profitability metrics, but I'm just trying to think through whether this quarter's profitability carries forward or kind of what you expect in terms of those metrics?
Well, I think with a little bit of math, I'm not trying to be cute, Feddie. I think if we lay out the expenses and noninterest income and the revenue guidance that we've given, you can kind of get to the numbers pretty close. And yes, we're not surprised that they increased this quarter, and we see no reason for them to decrease unless the world changes.
There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect.
Bankwell Financial Group, Inc. — Q2 2026 Earnings Call
Bankwell Financial Group, Inc. — Q1 2026 Earnings Call
1. Management Discussion
Thank you for standing by. My name is Tina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Bankwell Financial Group, Inc. First Quarter 2026 Earnings Call. [Operator Instructions]
It is now my pleasure to turn the call over to Courtney Sacchetti, Executive Vice President and Chief Financial Officer. You may begin.
Thank you. Good morning, everyone. Welcome to Bankwell's First Quarter 2026 Earnings Conference Call. To access the call over the Internet and review the presentation materials that we will reference on the call, please visit our website at investor.mybankwell.com, and go to the Events and Presentations tab for supporting materials. Our first quarter earnings release is also available on our website.
Our remarks today may contain forward-looking statements and may refer to non-GAAP financial measures. All participants should refer to our SEC filings, including those found on Forms 8-K, 10-Q and 10-K for a complete discussion of forward-looking statements and any factors that could cause actual results to differ from those statements.
And now I will turn the call over to Chris Gruseke, Bankwell's Chief Executive Officer.
Thanks, Courtney. Welcome, and thank you to everyone for joining Bankwell's quarterly earnings call. This morning, I'm joined by Courtney Sacchetti, our Chief Financial Officer; and Matt McNeill, our President and Chief Banking Officer. We appreciate your interest in our performance, and I'm excited by this opportunity to discuss our results with you.
We've delivered a solid start to 2026 with strong earnings, continued balance sheet improvement and continued progress on our strategic priorities. For the first quarter, we reported GAAP net income of $11.3 million or $1.41 per share. These results were supported by solid loan production, strong fee income from our SBA platform, lower funding costs, meaningful core deposit growth and ongoing balance sheet optimization, including reduced reliance on wholesale funding and continued progress on building a more interest rate neutral balance sheet.
Loan growth remained positive during the quarter with $190 million of originations, including $34 million of SBA production, resulting in net loan growth of $27 million. On an annualized basis, this level of growth is consistent with our previously communicated guidance of 4% to 5% for the full year, and our pipeline remains strong. Importantly, this growth is supported by strong core deposit inflows.
Core deposits increased by $113 million sequentially with $39 million coming from low-cost deposits. Included in that $39 million is $24 million of growth in annualized checking balances for an 8% increase on the quarter. In addition to funding our loan growth, we've also reduced broker deposit balances and Federal Home Loan Bank borrowings by a combined $95 million, further improving our funding mix. Since our peak at the end of 2022, we've successfully reduced our broker deposits by $513 million for a 50% decline.
The net interest margin was 328 basis points, reflecting modest pressure from asset repricing as floating rate loans reset lower and an unfavorable day count impact relative to the prior quarter. These factors were partially offset by continued improvement in deposit costs, which declined 5 basis points sequentially to 310 basis points. Noninterest income remained a meaningful contributor to results totaling $3.3 million, which includes $2.4 million of SBA gain on sale income.
Our SBA division continues to be an important part of our diversified revenue strategy and a meaningful source of recurring fee income. Credit quality remains healthy with expectations of further improvement.
While nonperforming assets increased modestly to 56 basis points of total assets, we have visibility into the resolution of several credits over the coming quarters. Overall asset quality metrics remain well within our internal expectations and reserve coverage levels remain appropriate.
Finally, we are excited to have opened our first full-service branch in New York during the quarter located in Bay Ridge, Brooklyn. The branch is home to an experienced private client banking team that joined Bankwell in 2025. And the addition of this location enables the team to deliver Bankwell's full suite of commercial and private client banking services on the ground in New York.
I'll now turn the call back to Courtney to walk through the financial results in more detail.
Thanks, Chris. Starting with the income statement. Net interest income totaled $26.9 million for the first quarter and was largely unchanged compared to the prior quarter. Net interest margin declined modestly to 328 basis points, driven primarily by the repricing of floating rate loans in a lower rate environment and an unfavorable day count impact.
On a day count normalized basis, the sequential NIM variance would have been approximately 5 basis points. These headwinds were partially offset by continued improvement in deposit costs. Total deposit costs declined to 310 basis points, down 5 basis points from the fourth quarter, and the bank exited March with a deposit cost exit rate of approximately 298 basis points.
During the first quarter, we successfully repriced approximately $300 million of time deposits, 44 basis points lower, generating an expected annualized benefit of $1.2 million. In addition, over the next 12 months, approximately $1.1 billion of time deposits are expected to reprice favorably with an average rate reduction of 14 basis points. This repricing is anticipated to deliver an incremental annualized benefit of roughly $1.6 million or about 5 basis points of net interest margin.
With respect to rate-sensitive assets, we've strategically increased the proportion of variable rate loans from just over 20% at the start of 2025 to approximately 42% at quarter end. Additional detail on asset and liability repricing as well as rate sensitivity is provided on Page 8 of the investor presentation.
Profitability remained solid in the quarter with return on average assets of 1.35% and a return on average tangible common equity of 15%. As deposit repricing continues to flow through the balance sheet and interest rate sensitivity moderates, we expect incremental margin improvement over the balance of 2026, affirming our full year net interest income guidance of $111 million to $112 million.
Noninterest income totaled $3.3 million for the quarter, reflecting $2.4 million of gains on SBA loan sales and continued growth in service fee income driven by an expanding commercial client base. Based on our first quarter results, we are raising our full year noninterest income guidance to $12 million to $13 million.
Our pre-provision net revenue for the quarter was $13.3 million or 1.6% of average assets compared to 1.8% in the prior quarter. Our PPNR was impacted by approximately $1 million in annual noninterest expense typically incurred in the first quarter, elevating total noninterest expense to $16.9 million for the quarter. These annual costs are primarily related to employee compensation and certain professional services.
Despite these seasonal expenses, our underlying noninterest expense run rate remains consistent with our prior guidance of $64 million to $65 million. The efficiency ratio for the quarter was 55.8%, which reflects the seasonality of first quarter expenses.
Our provision for credit losses was a release of $1 million for the quarter, driven by the net impact of loan growth and economic factors embedded in our CECL model. The allowance for credit losses ended the quarter at 1.03% of total loans with coverage of nonperforming loans at approximately 155%.
From a capital and liquidity standpoint, the balance sheet remains strong. Total assets ended the quarter at $3.4 billion, deposits totaled $2.9 billion, and both the bank and holding company remain well capitalized. Tangible common equity was 9.17%, and our consolidated common equity Tier 1 ratio was approximately 10.58%. We repurchased 3,317 shares during the quarter at an average price of $45.32 per share.
Now I'll turn the call back to Chris for closing remarks.
Thanks, Courtney. In 2024, we laid out a plan to improve our funding mix, continue to grow our loan book in a disciplined manner, maintain strong credit quality and build diversified sources of revenue. We've also committed to continue to invest in our tech-forward platform while managing expenses. We are truly gratified by the results achieved through the planning and hard work done by our team, and we thank them for their dedication.
We will continue to execute on our strategic goals and look forward to sharing the results of our continuous growth and evolution with all of our stakeholders in the quarters ahead. We thank our long-time customers for their continued support and welcome the many new customers who have helped us to grow our business. We also appreciate the continued support and interest from our shareholders and the investment community.
Now operator, we're ready to open the line for questions.
[Operator Instructions] And from KBW, our first question comes from the line of Mark Shutley.
2. Question Answer
I appreciate the detail on the CDs and how much of that's coming due. I think you said that's a 5 basis point benefit to the margin. So I was just curious in this current rate environment now that it's seemingly more flat. Are you seeing more competition on the deposit side? I'm just trying to get a sense for how much the overall interest-bearing deposit costs can be worked down.
First of all, the first part of that answer is the numbers that we put in that's expected to roll CDs is based on market on the day that -- as of today's market. So it implies no further cuts or any term deposits as they roll to current, that's what the impact would be. That was the first part of your question.
This is Matt. As far as deposit competition, it's very competitive out there for deposits. We're focused on bringing in low-cost deposits to bring down our funding costs, which is probably the most competitive area. However, we're finding success and have been able to substantially grow core deposits in the quarter.
Right. So obviously, it's competitive. And loan growth -- net loan growth was approximately 2% quarter-over-quarter, but core loan growth was substantially higher. And with the -- so it was something like 7%, Courtney?
Core deposit growth of $113 million.
$113 million, about $30 million of that was annualized or noninterest-bearing or low cost. So almost 30% -- 25%, 30% of what we brought in this quarter. And with the balance that didn't result in growth, we paid down more expensive borrowings. So we're happy with the deposit result despite the competitive environment.
Improved mix in our deposits...
Yes.
Okay. Appreciate it. And then maybe switching gears really quick. So SBA was strong in the quarter, and it looks like originations are tracking higher than -- I think you previously talked about $100 million in originations for the quarter. So I'm just trying to get a sense of where you think if there's any change to that and where SBA fits into the overall fee guidance.
Yes, we are having success with the SBA. We have a really strong team. We could definitely originate more SBA loans. We're choosing to keep the volume kind of level where it's at. We're not increasing our $100 million that we put out as how we are thinking about fee income, although other fees are coming in higher as well. So that is the reason for the increase in the fee guidance.
So if we wanted to do more, we could is the answer. Similarly, as we're 2 years into this, we're going in a measured.
Operator, we are ready for the next question.
Our next question is from the line of [Technical Difficulty].
Sorry, are you there?
Yes, sorry, I didn't hear the name. So my apologies on that.
Yes, no...
Courtney, there is...
You are on, Feddie.
All right. Perfect. No worries. It's all good. I just wanted to start by asking about the Brooklyn office. Just does that sort of serve as the [indiscernible] or some of the deposit gathering teams that are in the city. And I was just curious how much lending do you think you will do out of that office?
I think we'll do a modest amount of lending out of the office, Feddie. It wasn't the primary reason to open the office. It was definitely a deposit play, which has already taken off and been robust, just in the 10 months leading up to the branch opening, the team was very active, and we've had good success there. Lending isn't a part of the strategy there. However, we do think that some loans will come out of it, but we've been lending in and around NYC for the -- since the existence of the bank. So it really shouldn't change a whole lot as far as like the geography where we're lending.
And Feddie, I think we've said this before, this is Chris. It's -- we don't have a plan to go and try to find branches in particular markets or make sure we have more branches. We hired the people first. This is a very experienced private client group that's been together for years has already had material and significant impact on our organization. And if what they needed is a branch to assist in their platform, then we can build a branch. It wasn't -- we happen to love Brooklyn. I was born there, but we weren't going out of our way to enter that market. We were following our deposit team and their needs.
Got it. That's helpful. And then just switching gears to CRE concentration, given the current trend line, is it possible we could see that dip below 300% by year-end or maybe early next year just based on what's currently in the pipeline and capital build and what have you? Or do you feel like you're kind of in a range where you're pretty comfortable and you're not as worried about crossing that 300% threshold?
I'm sorry, was that the CRE concentration question?
Yes.
We don't have 300 as a target. We're seeing a more diversified loan mix. It's conceivable, but it's not the plan. So you can look at the trend. Over the last year, we've come down 10 -- no, more, 375, 40 basis points. Yes, we are happy where it is. I guess we can live with it, but I suspect over time, we'll get down there. It's -- whether it's year-end or not, I don't know, but it's been a consistent trend for a while, and we're seeing a better flow of C&I deals and we haven't done much office, et cetera. So I think it will naturally kind of get there, but it's not particularly our goal. I wouldn't be surprised if it came down another 10, 20 basis points over the course of the year.
Got it. And then just on the credit side, it looked like the modest increase in nonaccruals there was CRE driven. I apologize if I missed it in the opening remarks. But can you speak a little bit more on maybe what drove the increase there and what you might expect on resolution of those?
Yes. The increase was just a tenant left the building. Sponsors not able to make the payment. There's equity in the deal. We think that we'll be able to work with them to dispose of the real estate and be paid there. As in Chris' comments, you heard that there is some visibility into resolution to several of the credits that are on our NPAs, and we expect those to happen in the next couple of quarters and have some meaningful resolution in a much lower NPA number.
From Raymond James, your next question comes from the line of Steve Moss.
It's Chase on for Steve. On loan pricing, can you tell me where new origination yields are coming on at these days?
For the first quarter, our average rate was 7.5%.
I appreciate that. And just one more for me. I thought you guys nibbled at buybacks this quarter. Can you tell us what would bring you more into that market?
I'm sorry, can you repeat that? I heard buybacks and that cut out.
Yes. I saw you nibbled at buybacks. Could you tell us what would bring you more into that market?
We look at the price quarterly or daily when we're not in blackout. We had a plan in place. I expect the number will grow over the course of the year, but you have to look at our consolidated CET1 ratio. And we are still trying to grow that. At the levels we have gotten to the last couple of days and the amount of stock that we issued, that wouldn't be surprised to see us over the course of the year, nibble some back. But we still need to -- our goal is still to get to 11%, not necessarily by year-end in the CET1 ratio at the hold co...
And with no further questions, this does conclude today's conference call. You may now disconnect.
Bankwell Financial Group, Inc. — Q1 2026 Earnings Call
Bankwell Financial Group, Inc. — Q4 2025 Earnings Call
1. Management Discussion
Thank you for standing by. My name is Tina, and I will be your conference operator today. [Audio Gap]
[Operator Instructions] It is now my pleasure to turn the call all over to Courtney Sacchetti, Executive Vice President and Chief Financial Officer, you may begin.
[Audio Gap] Please visit our website at investor.mybankwell.com, and go to the Events & Presentations tab for supporting materials. Our fourth quarter earnings release is also available on our website.
Our remarks today may contain forward-looking statements and may refer to non-GAAP financial measures. All participants should refer to our SEC filings, including those found on Forms 8-K, 10-Q and 10-K for a complete discussion of forward-looking statements and any factors that could cause [Audio Gap]
[Audio Gap] Thank you to everyone for joining Bankwell's quarterly earnings call. This morning, I'm joined by Courtney Sacchetti, our Chief Financial Officer; and Matt McNeill, our President and Chief Banking Officer. We appreciate your interest in our performance and this opportunity to discuss our results with you.
Our fourth quarter GAAP net income was $9.1 million, or $1.15 per share, which includes a $1.5 million onetime adjustment to the income tax provision associated with various state tax filings and changes in estimated tax positions. This adjustment relates to both current and prior year tax estimates [Audio Gap]
encourage you to review both metrics together. Courtney will walk you through these results in more detail in a moment.
Pre-provision net revenue return on average assets was 180 basis points for the quarter, an increase of [Audio Gap] growth in noninterest income, driven primarily by our [ SBA ] division. [Audio Gap] interest margin has continued to expand this quarter, as we've previously signaled, the pace of that expansion has moderated. This is a result of our intentional increased exposure to floating rate loans. We ended 2025 with floating rate loans comprising 38% of our total loan portfolio, compared to 23% of the end of '24.
On the funding side, we've taken advantage of the lower rate environment to reprice [Audio Gap]
deposits continues to improve. Average low-cost deposit balances increased by $22 million, or 5% over the prior quarter, and by $86 million or 21% versus the fourth quarter of 2024. As we note in our investor presentation, low-cost deposits include noninterest-bearing accounts [Audio Gap] accounts with the deposit rate of 50 basis points or less [Audio Gap].
Net loan growth for the quarter was $122 million. And for the full year, we generated $134 million of net loan growth, or 5% annual loan growth. With the end of the government shutdown and the reopening of the SBA in November, our SBA division was able to fully resume both originations and sales. As a result, gains on sale [Audio Gap]
in the portfolio continue to improve. Nonperforming assets as a percentage of total assets fell to 49 basis points compared to 56 basis points last quarter. This improvement was driven by the sale of a $1.3 million [ OREO ] property and the collection of $400,000 on an [Audio Gap]
Operating leverage created by faster revenue growth relative to expenses.
I'll now turn it over to Courtney for a more detailed review of our financial results.
Thanks, Chris. We closed the year on a strong note, delivering fourth quarter GAAP net income of $9.1 million, and a reported EPS of $1.15. [Audio Gap]
while noninterest income increased to $3.4 million, driven by $2.2 million of [Audio Gap]
For the Full year, we originated more than $900 million of loans, including approximately $68 million of SBA originations. Net interest margin expanded to 340 basis points, up 6 basis points from the prior quarter. The improvement was driven by a 15 basis point reduction in deposit costs, which declined to [Audio Gap]
September, we responded to the Fed's 75 basis points rate cuts by adjusting our deposit pricing. We lowered offered time deposit rates by 50 basis points, repriced approximately $250 million of index deposits at 100% beta [Audio Gap]
This repricing is anticipated to provide an annualized incremental benefit of roughly $4 million, or about 12 basis points of net interest margin [Audio Gap]
Increased quarter over quarter. As shown on Page 13 of our investor presentation, noninterest income now represents 11.4% of total revenue, compared to 4.6% in the fourth quarter of 2024. Asset quality continued to improve during the quarter. We reduced nonperforming assets by $1.9 million, bringing the NPA to assets ratio down to [indiscernible] basis points. We recorded modest net recoveries and a provision for credit losses of approximately $600,000.
Our allowance for credit losses stands at 108 basis points of total loans, while coverage of nonperforming loans increased to [Audio Gap] versus the linked quarter. The holding company banks remain well capitalized with our estimated consolidated common equity Tier 1 ratio now at 10.2%, and bank total capital ratio of 12.9%. Our tangible book value per share also increased [Audio Gap]
$1.5 million of nonrecurring income tax expense this quarter. This reflects $855,000 expense related to a true-up [Audio Gap] reserve for uncertain tax positions, driven by a change in estimate in the company's expanded state-level footprint. These adjustments represent a onetime true-up to certain current and prior period estimates. Our 27.4% effective tax rate for full year 2025 reflects this onetime expense. On a go-forward basis, we would expect our effective tax rate to be approximately 25%.
Finally, in addition to fourth quarter operating net income of $10.7 million, or $1.36 per share, we delivered [Audio Gap] reported 12.31%.
Now I turn the call back to Chris.
Thank you, Courtney. 2025 was a year where our team demonstrated its ability to execute and make meaningful progress across every dimension of our strategy. We entered the year with a clear set of priorities. Strengthen credit, improve the funding mix [Audio Gap] people and technology. I'm pleased to say that we delivered on each of these priorities.
Nonperforming assets ended the year at 49 basis points of total assets. We've continued to improve the profile of our funding base, reducing our dependence on higher-cost sources, and growing our relationship-driven lower-cost deposits. Our focus on building diversified recurring sources of revenue is bearing fruit with the successful growth of our SBA division. And despite a year of heightened prepayments, we ended 2025 with year-over-year loan growth of approximately 5%.
Finally, we continue to invest in the people, technology and capabilities that will carry us forward. We've strengthened our teams both in key client-facing and operational roles, and we're seeing the benefits of those investments. While making these investments, we've also increased scalability. We believe the work done throughout 2025 [Audio Gap]
anticipate net interest income in the range of $111 million to [indiscernible]. We also expect [Audio Gap]
Our people and structure and operational capabilities. Before we open the line for questions, I'd like to thank our entire team for their [Audio Gap] '26 with confidence for an even better year ahead. Operator, we're ready for questions.
[Operator Instructions] [Audio Gap]
2. Question Answer
[Audio Gap] Just wanted to start on loan growth previously, you're expecting a pickup there in '26. So I think it's a little bit of what I have previously modeled. Can you talk about the extent to which payoffs versus new originations drive the net new growth number?
Yes. Freddie, this is Chris. It was pretty lumpy during the year, and we were paying catch-up [Audio Gap]
[Audio Gap] in the first part of '25 was somewhat unexpected change the way that we were thinking about our [Audio Gap] we're able to catch up in the quarter. Now that we're [Audio Gap] is anticipating that runoff, [Audio Gap]
Yes. I'd just add to that, and not to take away from the question time. I think what we've shown is that [Audio Gap] the number we want to get to, we can get to it. It was a matter [indiscernible] in the pump, and we can generate [Audio Gap] for loans that we can get to a number when we're ready for it. So [Audio Gap]
Okay. Great. And I apologize [indiscernible] in your answer, it was a little choppy on my end, but I just wanted to ask what the makeup in the loan pipeline was today as well?
Are you looking for [Audio Gap]
We've steadily brought down investor accretive capital over the past [indiscernible] several years. We anticipate continuing to be strong C&I [Audio Gap]
[Audio Gap] with KBW.
A couple of quick questions. One, what do you expect the low-cost deposit growth to be this coming year?
I don't think we've got a number on guidance for that. We obviously expect a steady improvement [Audio Gap]. We've got our own teams. We're making headway. So I don't think we're going to guide to a number, but what we have for the -- what it was our number for the year.
[Audio Gap] so we are able to put up a good growth on an average basis year-over-year.
I mean we certainly like to repeat that again.
Right. But it seems [Audio Gap] would outpace the loan growth?
[Audio Gap] pay down brokered.
I'll point out David, that the 5% of low deposit growth is on a average basis for the year. So it's very likely that this is a conservative growth number.
Got it. Okay. [Audio Gap] out in the guide for the total year, any seasonality of that quarter-to-quarter? How should we face that?
I think we'll see [Audio Gap]
Our final question comes from the line of Steve Moss with Raymond James.
Good morning. Maybe just following up on the SBA stuff. On the SBA stuff here in terms of just what are your thoughts, and I apologize if I missed this, for originations in SBA in 2026?
[Audio Gap] I think the way the math works out is to achieve our noninterest income numbers to [Audio Gap] We finished '25 with [indiscernible] and that this was the real -- the first full year of the SBA division functional. So we think [Audio Gap]
Okay. Just wanted to [indiscernible] check that, but I appreciate that. And then in terms of the expense growth outlook here, just kind of curious what you expect will be the drivers on expense growth here in '26?
People and processes? I mean we've definitely added across the bank in client and nonclient facing [Audio Gap]
As we said on the call. [Audio Gap] we want shareholders and you all to have complete transparency is what we're doing. But the guide on revenue, income and profitability, has these numbers baked in. So our approach is not -- well, if you can -- if you build it, they will come. We're making these investments while [indiscernible] putting up -- operating [Audio Gap]
points in the guidance that we have out there probably gets you depending on what you use for [Audio Gap] if you don't invest, stay current you're at a business. So we want to make sure that we're always ready for the future. right.
No. Definitely appreciate that dynamic. And I guess the other thing in terms of just kind of loan pricing here, curious how are new origination coupons holding up these days, if there's been any spread compression? Just any color you can give on that front.
No recent spread compression. We generate a reasonable amount of floating rate loans. So as indices fall, the origination coupon on floating rate loan goes down and we price our fixed rate primarily off of treasury. So as those fall the coupons down, but the credit spread itself.
We have seen people requesting and showing us offers [Audio Gap] lower credit spreads, but we typically are able to keep our due to loan [Audio Gap]
[Audio Gap] This does conclude today's conference call. Thank you for participating. You may now disconnect.
Bankwell Financial Group, Inc. — Q4 2025 Earnings Call
Bankwell Financial Group, Inc. — Q3 2025 Earnings Call
1. Management Discussion
Thank you for standing by. My name is Jordan, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Bankwell Financial Group Third Quarter 2025 Earnings Call. [Operator Instructions] I'd now like to turn the call over to Courtney Sacchetti, Executive Vice President and Chief Financial Officer. Please go ahead.
Thank you. Good morning, everyone. Welcome to Bankwell's Third Quarter 2025 Earnings Conference Call. To access the call over the Internet and review the presentation materials that we will reference on the call, please visit our website at investor.mybankwell.com and go to the Events and Presentations tab for supporting materials. Our third quarter earnings release is also available on our website.
Our remarks today may contain forward-looking statements and may refer to non-GAAP financial measures. All participants should refer to our SEC filings, including those found on Forms 8-K, 10-Q and 10-K; for a complete discussion of forward-looking statements and any factors that could cause actual results to differ from those statements.
And now I'll turn the call over to Chris Gruseke, Bankwell's Chief Executive Officer.
Thank you, Courtney. Welcome, and thank you to everyone for joining Bankwell's quarterly earnings call. This morning, I'm joined by Courtney Sacchetti, our Chief Financial Officer; and Matt McNeill, our President and Chief Banking Officer. We appreciate your interest in our performance and this opportunity to discuss our results with you.
Bankwell delivered another strong quarter with GAAP net income of $10.1 million or $1.27 per share, up from $9.1 million or $1.15 per share last quarter. Pre-provision net revenue return on assets was 1.7% for the quarter, up 27 basis points from the prior quarter.
Our results reflect the continued expansion of the company's net interest margin as well as growth in noninterest income generated by our SBA division. We've also made further progress in reducing our nonperforming asset balances during the quarter and continue to have a positive outlook on credit for the quarters ahead.
Our NIM continued to expand this quarter as we forecast for the last several quarters. This is the result of the combined impact of repricing approximately $1 billion of time deposits, increased asset yields and the growth of our low-cost deposit balances.
Low-cost deposits include noninterest-bearing deposits as well as NOW accounts at rates of 50 basis points or lower. These accounts average balances collectively grew by $20 million over the prior quarter and $64 million or 16% since the fourth quarter of 2024.
Loan originations remained strong. During the third quarter, we funded $220 million of loans, bringing our year-to-date fundings to just over $500 million. Our SBA division increased its momentum as gains on sale rose to $1.4 million for the quarter. SBA originations totaled $22 million for the quarter, bringing our year-to-date total originations to $44 million.
The government shutdown has potential to temporarily impact our SBA results for the remainder of this year. While there may be potential for short-term impact, the SBA division has been a strong performer, reaching nearly 90% of our full-year origination goal of $50 million within the first 3 quarters of this year. Year-to-date noninterest income, including SBA gains on sale, totaled $6 million.
Credit trends in the portfolio continue to improve. Nonperforming assets as a percentage of total assets fell to 56 basis points compared to 78 basis points last quarter. This improvement was driven by the collection of $5 million on 3 SBA guaranteed loans and the sale of a $1.6 million commercial real estate loan.
Additionally, Special Mention loan balances decreased by $30 million. Finally, our efficiency ratio improved to 51.4% in the quarter, down from 56.1% last quarter as we continue to balance growth with fiscal discipline.
Now I'll ask Courtney to provide a more detailed review of our financial results.
Thank you, Chris. For the third quarter, pre-provision net revenue totaled $13.9 million or $1.77 per share, representing a 21% increase from the second quarter. Net interest income reached $26 million, while noninterest income increased to $2.5 million, driven by $1.4 million in SBA sales gains.
Net interest margin expanded to 3.34%, up 24 basis points over the prior quarter. This growth was driven by a 13 basis point rise in loan yields, with approximately 3 basis points of both margin and yield attributable to onetime interest income from resolved SBA loans.
Deposit costs also improved 10 basis points now at 3.30%. Improvement in both deposit costs and loan yields have contributed materially to our NIM expansion this year, up 74 basis points from the fourth quarter of 2024. Interest-bearing deposit costs are down 37 basis points from the fourth quarter of 2024.
Loan yields widened, with our year-to-date average originations yield approximately 136 basis points higher than the runoff yield, generating a 41 basis point increase on yield for the total portfolio from the fourth quarter of 2024.
These results do not reflect our response to the September rate cut made by the Fed. In response to the rate cut, we reduced our CD rates by 25 basis points and repriced approximately $0.5 billion of non-maturity deposits.
We expect $1.25 billion in time deposits to reprice favorably over the next 12 months by approximately 27 basis points. The annualized incremental benefit of this repricing is approximately $3.4 million. Please refer to Page 10 of our investor presentation for more detail on our time deposit maturity schedule.
Although we expect to realize the benefit of lower cost time deposits over the next 12 months, we also have approximately $800 million in loans tied to prime that repriced at the end of September. We anticipate the short-term impact of these recent rate changes to hold our net interest margin relatively flat in the fourth quarter. However, as term deposits mature, we expect our margin to improve as liability repricing aligns with assets.
For a future 25 basis point rate cut, we would anticipate a modest annualized increase in our net interest margin of approximately 5 basis points. Since the start of the year, we have strategically increased our proportion of variable rate loans from just over 20% to 35%. As we have constructed a more neutral balance sheet, the impact of future interest rate changes on our results is expected to diminish.
Noninterest income of $2.5 million increased 24% versus the linked quarter, largely driven by $1.4 million of SBA gain on sale income, an increase of $0.3 million over the last quarter. As you can see on Page 14 of our investor presentation, noninterest income now represents 8.8% of total revenue compared to 4.6% in the fourth quarter of 2024.
Total revenue grew 10% compared to the prior quarter, while noninterest expense increased just 1%, resulting in positive operating leverage. While our noninterest expense to average assets was 180 basis points, our efficiency ratio improved to 51.4% for the quarter. We're pleased with this progress and expect further improvement in our efficiency ratio as profitability expands.
Turning to credit, third quarter results reflect continued positive trends. We reduced our nonperforming assets by $7 million, bringing our NPA to assets ratio to 56 basis points. We recorded modest recoveries and a small provision of $372,000 in the quarter. Our allowance for credit losses remains at 110 basis points of total loans, while our coverage of nonperforming loans increased to 177%.
A few final thoughts on our financial condition. Our balance sheet remains well capitalized and liquid with total assets of $3.2 billion, up slightly versus the linked quarter. The holding company and bank both saw expanding capital ratios during the third quarter, with our consolidated common equity Tier 1 ratio now at 10.39% versus 10.18% in the prior quarter. Our tangible book value also increased, reaching $36.84.
I'll now turn it over to Matt to provide an update on loan originations.
Good morning. As Chris mentioned, loan fundings in the first 3 quarters remained strong. The bank has funded $500 million in new loans as of 9/30. 2025 year-to-date loan fundings have already outpaced full year 2023 and 2024, respectively. Payoffs have been at record levels and are projected to remain high through the end of the year. Despite our strong origination numbers, net loan growth only increased $49 million in the quarter and $12 million year-to-date.
I would like to point out that some of our payoff activity is being encouraged by the bank, where we would like to exit some less attractive credits. Overall, we believe the recycling of the loan book is a sign of good health, and it provides the bank the opportunity to make new loans at more favorable yields.
Now I will hand it back to Courtney to summarize our guidance for the remainder of the year.
Thanks, Matt. Due to our elevated payoffs, we are revising our low single-digit loan growth guidance to flat for the year. We affirm our noninterest income guidance of $7 million to $8 million for the full year, and the resumption of the SBA program would be additive to that total.
We also affirm our net interest income guidance of $97 million to $98 million, along with our guidance on noninterest expense of $58 million to $59 million. With our fourth quarter earnings in January, we will provide additional guidance on our 2026 outlook.
I'll now turn the call back to Chris for [Technical Difficulty].
Thank you, Courtney. We've continued to make excellent progress and to deliver on our strategic objectives of diversifying our income streams, improving our deposit base and continuously attracting talented banking professionals who value the opportunities afforded by working with the team committed to constant improvement.
Importantly, we've made significant strides on closing out some pandemic-era credits with no further losses. Nonperforming assets now stand at 56 basis points of total assets versus 207 basis points a year ago, and we look forward to further improvement in the quarters ahead. Thanks to everyone on the Bankwell team, whose commitment to excellence has enabled these results.
This concludes our prepared remarks. Operator, will you please begin the question-and-answer session?
[Operator Instructions] Our first question comes from the line of Steve Moss from Raymond James.
2. Question Answer
Chris, maybe just starting with the good originations this quarter, I think Courtney gave a loan yield number, but I'm sorry, I missed those, I was kind of hopping on the call a little late here. Just kind of curious, where is loan pricing these days? And do we continue to see elevated payoffs maybe carrying over into 2026?
Yes. So Steve, it's Courtney. On Page 10 of our investor presentation, we do give a little bit more detail. We -- year-to-date, our originations are a weighted average rate of [ 7.86 ]. That's on about $0.5 billion of originations, and that's the rate as of 9/30, so impact from any repricing or anything there.
Matt?
Yes. Loan demand is very strong. That's reflected in that pricing. So [Audio Gap] pick and choose kind of where we want to move forward. The lack of material loan growth year-over-year is really related to the timing and the velocity of the payoffs.
This is the strongest year of payoffs that we've experienced. And that's -- it takes a couple of months to get the loan pipeline to respond to be able to backfill those numbers, which we successfully did this quarter. And we anticipate the fourth quarter to have some similarly strong payoffs.
So we think we'll be able to meet -- and Courtney had said earlier that we're going to stay flat, and that's how we're looking at it. But the loan demand is still there. It's just the timing of payoffs and trying to get the pipeline robust enough to respond to that.
Stephen, with regard to next year, it is -- we have demands due to originate higher volume than we have. So it's a matter of lead time. So we'll just plan to be out in front of it. We can control it with pricing.
Yes, I hear you there. And then in terms of an update on your core deposit initiative with the teams you brought over, just kind of curious, how is that developing? And if you have any update on that front?
So the teams, the first teams were hired in April, and we've hired some subsequent teams since then, including in the third quarter. We're bullish on the teams. They're already starting to produce and add deposits to the balance sheet. We don't think that we will have a -- their full production in place until sometime in '26. We did very carefully target teams that had large portfolios of noninterest-bearing deposits. So those are primarily [Audio Gap] accounts, which take longer to [ move ] than a high interest-bearing account where it's just money sitting around that's not being utilized in a business.
So they're well within our time threshold for how they're performing, and we're [Audio Gap] full impact technical [Audio Gap].
Okay. And just kind of -- maybe just last one for me here in terms of just thinking about just the cadence of lower [ cuts ]. I hear you guys on CDs getting repriced 100% beta. Kind of curious on the nonmaturity deposits, how you're thinking about deposit beta with the Fed?
Right. So the most recent rate cut at the end of September, we have just rough numbers, approximately $1 billion of non-maturity interest-bearing deposits. About $250 million, $260 million of that we have indexed to Fed funds. So that will move that part of the relationship that we have.
And then with this recent round, we did another $250 million or so of our exception rate pricing, 100% beta down. So we were able to achieve effectively 50% beta on $1 billion of deposits.
The final question comes from the line of Feddie Strickland from Hovde Group.
This is Feddie's associate [ Anira ] on for him. The first question, we saw some strong SBA contributions in the quarter, and we wanted to know, how much more do you feel you can ramp up that side of the business? And in your opening remarks, you did mention that there may be short-term government shutdown effects. Will that affect the ramp-up or anything to do with that side of the business?
I believe the answer to the second question is it really depends on the duration of the shutdown right now. So Bankwell is a preferred lender. We're able to continue to underwrite SBA credits. We are not able to get in-place guarantees, and we are not [Audio Gap] our guaranteed [Audio Gap] previously originated.
There is a temporary freeze to the SBA income. If the government opens up in a relatively short amount of time, it may not have a large -- or it may not have an impact on the business. We may be able to fluidly flow through it, but it's really going to depend on the duration of the shutdown.
As far as the ramp, we hired Michael Johnston from ReadyCap, which was the fourth largest producer of SBA loans in the country in previous years. And we believe that the SBA division does have operating leverage able to further scale the business beyond $50 million in production, and we'll talk about that in the fourth quarter.
And we'll just need the government to be open to do that.
Correct.
This is Chris. I'll continue a little bit on that answer and say that we did note that in the 3 quarters' worth of activity, we pretty much hit our original goal of almost [ $50 million ]. So we've got almost a full year's worth of original expectations in the results. So the government opens, as Courtney had mentioned, there's [Audio Gap] it will be [Audio Gap] up to when the government [Audio Gap].
There are no further questions. This concludes today's meeting. You may now disconnect.
Bankwell Financial Group, Inc. — Q3 2025 Earnings Call
Financial data from Bankwell Financial Group, Inc.
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 122 122 |
32%
32%
100%
|
|
| - Interest Income | 109 109 |
26%
26%
90%
|
|
| - Non-Interest Income | 12 12 |
121%
121%
10%
|
|
| Interest Expense | 95 95 |
11%
11%
78%
|
|
| Non-Interest Expense | -62 -62 |
15%
15%
-51%
|
|
| Loan Loss Provisions | 1.19 1.19 |
89%
89%
1%
|
|
| Net Profit | 42 42 |
106%
106%
35%
|
|
In millions USD.
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Bankwell Financial Group, Inc. Stock News
Company Profile
Bankwell Financial Group, Inc. is a bank holding company, which engages in the provision of financial services through its banking subsidiary, Bankwell Bank. It offers personal banking solutions including checking, savings, money market, online and mobile banking, debit cards, and personal loans. It also delivers business banking solutions such as business checking, treasury management, business savings, commercial services, business loans and lines of credit, and commercial mortgages. The company was founded in 2007 and is headquartered in New Canaan, CT.
StocksGuide Premium
| Head office | United States |
| CEO | Mr. Gruseke |
| Employees | 167 |
| Founded | 2002 |
| Website | www.mybankwell.com |


