Bankwell Financial Group (BWFG) investor relations material

Executive summary

• GAAP net income for Q1 2026 was $11.3 million ($1.41 per share), reflecting strong profitability and supported by robust loan production, SBA fee income, lower funding costs, and core deposit growth.

• Core deposits grew by $113 million sequentially, with $39 million in low-cost deposits; brokered deposits reduced by $45 million.

• Loan originations reached $190 million, including $34 million in SBA loans; net loan growth was $27 million.

• Opened a new full-service branch in Brooklyn, NY, expanding market presence and deposit gathering capabilities.

• Continued progress on strategic priorities: balance sheet optimization, reduced wholesale funding, and building a more interest rate neutral profile.

Financial highlights

• Net interest income was $26.9 million, nearly flat sequentially but up from $22.1 million in Q1 2025; net interest margin declined to 3.28%.

• Noninterest income totaled $3.3 million, including $2.4 million from SBA loan sales.

• Efficiency ratio was 55.8%, reflecting seasonal first quarter expenses.

• Return on average assets was 1.35%; return on average tangible common equity was 15%.

• Tangible book value per share increased to $38.79.

Outlook and guidance

• Full-year net interest income guidance affirmed at $111–$112 million; loan growth guidance reaffirmed.

• Raised full-year noninterest income guidance to $12–$13 million, driven by strong SBA and other fee income.

• Noninterest expense guidance for 2026 affirmed at $64–$65 million.

• Expect incremental margin improvement as deposit repricing continues and interest rate sensitivity moderates.

• Confident in credit quality and positioned to reduce nonperforming assets in coming quarters.