Bankwell Financial Group (BWFG) Q1 2025 earnings summary

Executive summary

• GAAP net income for Q1 2025 was $6.9 million ($0.87 per share), up 135% from Q4 and 81% year-over-year, driven by margin expansion, lower provision expense, and strong SBA gains.

• Net interest margin expanded to 2.81%, up 21 basis points sequentially, benefiting from lower deposit costs and improved loan yields.

• Non-performing assets ratio dropped to 0.83% of total assets, reflecting significant CRE multifamily NPL and OREO asset dispositions.

• Core deposits grew by $43 million sequentially, while brokered deposits declined by $81 million; two new deposit teams were added in April in the NYC metro area.

• Tangible book value per share increased to $34.56, with CET1 ratio at 10.04% and total capital ratio at 13.22%.

Financial highlights

• Net income for Q1 2025 was $6.9 million, up from $3.0 million in Q4 2024 and $1.9 million in Q1 2024.

• Net interest income rose to $22.1 million from $20.2 million in the prior quarter; revenues for Q1 2025 were $23.6 million, up from $22.1 million in Q4 2024.

• Non-interest income increased 56% sequentially, driven by $442,000 in SBA gain-on-sale.

• Provision for credit losses was $0.5 million, down from $4.5 million in Q4; no charge-offs in the quarter.

• Total assets ended at $3.2 billion, with gross loans at $2.6 billion and total deposits at $2.8 billion.

Outlook and guidance

• Net interest income guidance for 2025 reaffirmed at $93–$95 million, assuming no Fed rate cuts.

• Full-year guidance for non-interest income and expense remains $7–8 million and $56–57 million, respectively.

• Expect continued NIM expansion through 2025, with full-year NIM in the 2.90%–3.00% range.

• SBA originations expected to reach $50 million for the year, with strongest quarter anticipated in Q4.

• Management expects modest loan growth, stable credit quality, and ongoing capital growth.