Bankwell Financial Group (BWFG) investor relations material

Executive summary

• Q4 2025 GAAP net income was $9.1 million ($1.15 per share), impacted by a $1.5 million one-time tax adjustment; operating net income was $10.7 million ($1.36 per share).

• Pre-provision net revenue return on average assets rose to 180 basis points, up 10 bps sequentially and 75 bps year-over-year.

• Net interest margin expanded to 3.40%, up 6 bps from the prior quarter, driven by lower deposit costs and improved funding mix.

• Non-interest income increased 35% quarter-over-quarter, with SBA gain on sale income reaching $2.2 million.

• Tangible book value per share increased to $37.84, up $3.75 year-over-year.

Financial highlights

• Net interest income for Q4 2025 was $26.9 million; non-interest income was $3.4 million.

• Net loan growth for Q4 2025 was $122 million; full-year net loan growth was 5%.

• Total assets ended at $3.4 billion, up 2.8% year-over-year; total deposits were $2.8 billion.

• Efficiency ratio improved to 50.8% in Q4 2025 from 51.4% in Q3 2025.

• Return on average assets was 1.11% (1.29% on an operating basis) for Q4 2025.

Outlook and guidance

• 2026 guidance: loan growth of 4–5%, net interest income of $111–$112 million, non-interest income of $11–$12 million, and non-interest expense of $64–$65 million.

• Targeting an efficiency ratio of 51–53% for 2026, improved from 54.1% in 2025.

• Effective tax rate expected to normalize to approximately 25% in 2026.

• Management expects continued benefit from lower deposit costs, with $1.2 billion in time deposits repriced 69 bps lower in 2025 and further favorable repricing in 2026.

• New loan originations in 2025 averaged a 7.29% rate, replacing runoff at 6.50%.