Bankwell Financial Group (BWFG) investor relations material

Executive summary

• Record Q3 GAAP net income was $12.7 million, or $1.58 diluted EPS; excluding $3.0 million of pre-tax core-conversion costs, operating net income was $15.0 million and diluted EPS was $1.86.

• NIM expanded 13 bps QoQ to 3.71%, loans grew $23 million, and NPAs declined to 0.20% of assets after the sale of a legacy nonperforming loan.

• Higher loan income, lower deposit costs, stronger SBA gains and a credit-loss benefit supported YoY revenue and earnings growth.

Financial highlights

• Q3 revenue was $35.3 million versus $32.8 million in Q2 and $28.5 million a year earlier; net interest income was $31.4 million versus $29.5 million in Q2.

• Noninterest income rose 21% QoQ to $4.0 million, including record SBA loan-sale gains of $2.8 million; service charges and fees were $951,000.

• Noninterest expense was $19.8 million versus $15.3 million in Q2, including $3.0 million of core-conversion costs, primarily contract termination fees.

• Nine-month revenue was $98.3 million versus $78.0 million; net income was $36.4 million versus $26.1 million, and diluted EPS was $4.52 versus $3.27.

• Quarter-end gross loans were $2.98 billion, deposits were $2.97 billion, and total assets were $3.56 billion.

Outlook and guidance

• FY 2026 net interest income guidance rose to $119 million–$121 million from $115 million–$117 million; noninterest income guidance rose to $14 million–$15 million from $12 million–$13 million.

• FY loan growth guidance remains 5%–7%; noninterest expense guidance remains $65 million–$67 million, excluding conversion costs.

• Conversion expenses are expected at $400,000–$500,000 per quarter over the next four quarters; completion is anticipated in H2 2027.

• Cash-flow swap gains in accumulated OCI are expected to reduce interest expense by $0.4 million over the next 12 months.

• A 200-bp parallel rate increase was modeled to lift cumulative two-year NII by 9.30%; a 200-bp decrease was modeled to lift it by 8.40%.