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Press Release

Bankwell Financial Group Reports Record Quarterly Net Income of $5.6 Million or $0.71 Per Share for the Second Quarter and Declares Third Quarter Dividend

Company Release - 7/30/2019 4:40 PM ET

NEW CANAAN, Conn.--(BUSINESS WIRE)-- Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $5.6 million or $0.71 per share for the second quarter of 2019, versus $4.7 million or $0.60 per share for the same period in 2018.

The Company's Board of Directors declared a $0.13 per share cash dividend, payable August 26, 2019 to shareholders of record on August 16, 2019.

Notes Bankwell Financial Group President and CEO, Christopher R. Gruseke:

"The Bankwell team once again delivered strong operating results against the backdrop of a competitive deposit market and a flattening yield curve. Year-to-date loan originations are ahead of 2018’s pace and the loan pipeline is quite robust. Once we begin to experience a more normalized trend in prepayments, these originations should translate to solid organic growth. Our investments in our Treasury Management product suite have also begun to bear fruit, as we see a strong pipeline there as well. Deposit pricing appears to have peaked as competitors’ rates have dropped consistently over the last several weeks. Bankwell’s balance sheet is well-positioned to take advantage of any rate decreases going forward."

Second Quarter 2019 Highlights:

  • Second quarter diluted earnings per share were $0.71, an increase of 18% compared to the second quarter of 2018.
  • Total noninterest income was $1.3 million for the second quarter of 2019, or 9% of total revenue.
  • Return on average assets for the second quarter of 2019 totaled 1.20% compared to 1.02% for the same period in 2018.
  • Return on average tangible common equity for the second quarter of 2019 totaled 12.68% compared to 11.41% for the same period in 2018.
  • Total gross loans were $1.6 billion for the second quarter of 2019.
  • The allowance for loan losses was $13.9 million and represents 0.89% of total loans.
  • Investment securities totaled $116.4 million and represent 6% of total assets.
  • Total deposits were $1.5 billion for the second quarter of 2019.
  • The Company repurchased 34,168 shares of its outstanding common stock at a cost of $1.0 million.
  • The tangible common equity ratio and tangible book value per share was 9.38% and $22.47, respectively.
  • The efficiency ratio was 58.0% for the six months ended June 30, 2019 compared to 60.1% for the same period in 2018.
  • Return on average assets for the six months ended June 30, 2019 totaled 1.15% compared to 1.03% for the same period in 2018.
  • Loan originations totaled $75.2 million, with $59.6 million of loan fundings for the quarter ended June 30, 2019. Loan originations totaled $168.5 million, with $121.4 million of loan fundings for the six months ended June 30, 2019.
  • Tax equivalent net interest margin was 3.07% for the second quarter of 2019 and 3.13% for the six months ended June 30, 2019.

Earnings

Revenues (net interest income plus noninterest income) for the quarter ended June 30, 2019 were $14.9 million, a decrease of 1% compared to the quarter ended June 30, 2018. Net interest income for the quarter ended June 30, 2019 was $13.6 million, a decrease of 2% compared to the quarter ended June 30, 2018. Net income for the quarter ended June 30, 2019 was $5.6 million, an increase of 18% compared to the quarter ended June 30, 2018. Revenues for the six months ended June 30, 2019 were $30.5 million, an increase of 2% compared to the six months ended June 30, 2018. Net interest income for the six months ended June 30, 2019 was $27.9 million, an increase of 1% compared to the six months ended June 30, 2018. Net income for the six months ended June 30, 2019 was $10.7 million, an increase of 14% compared to the six months ended June 30, 2018. The increase in net income for the quarter and six months ended June 30, 2019 was primarily due to a decrease in the allowance for loan losses and by fees recognized from elevated loan pre-payments. The allowance for loan losses declined as a result of a decrease in the general reserve driven by improving historical loss trends. Pre-payment fees totaled $1.0 million for the quarter ended June 30, 2019 compared to $0.3 million for the same period in 2018. Pre-payment fees totaled $2.1 million for the six months ended June 30, 2019 compared to $0.3 million for the same period in 2018.

Basic and diluted earnings per share were each $0.71 for the quarter ended June 30, 2019 compared to $0.60 for the quarter ended June 30, 2018. Basic and diluted earnings per share were $1.36 and $1.35, respectively, for the six months ended June 30, 2019 compared to basic and diluted earnings per share of $1.19 for the six months ended June 30, 2018.

The Company’s efficiency ratios for the quarters ended June 30, 2019 and June 30, 2018 were 58.6% and 58.2%, respectively. The Company's efficiency ratios for the six months ended June 30, 2019 and June 30, 2018 were 58.0% and 60.1%, respectively. The decrease in the efficiency ratio for the six months ended June 30, 2019 was driven by a reduction in noninterest expense and by an increase in net interest income resulting from the aforementioned loan pre-payments.

Noninterest Income and Expense

Noninterest income increased by $0.2 million, or 21%, to $1.3 million for the quarter ended June 30, 2019 compared to the quarter ended June 30, 2018. The increase in noninterest income was primarily a result of a $0.3 million increase in gains and fees from the sales of loans and a $0.1 million gain recognized on the sale of available for sale securities. The increase in noninterest income was partially offset by a decrease in other income totaling $0.1 million.

Noninterest income increased by $0.2 million, or 8%, for the six months ended June 30, 2019 compared to the six months ended June 30, 2018. The increase in noninterest income was primarily a result of a $0.4 million increase in other income, attributable to an interest rate swap fee recognized in the first quarter of 2019. The increase in noninterest income was partially offset by a decrease of $0.1 million in gains recognized on the sale of available for sale securities.

Noninterest expense remained flat, totaling $8.8 million for each of the quarters ended June 30, 2019 and June 30, 2018. Noninterest expense decreased $0.2 million, or 1%, for the six months ended June 30, 2019 compared to the six months ended June 30, 2018. The decrease was primarily driven by a $0.2 million decrease in marketing expense and a $0.2 million decrease in FDIC insurance expense. The decrease in noninterest expense was partially offset by an increase in occupancy and equipment expense related to the prior year's branch expansion and overall investment in technology.

Financial Condition

Assets totaled $1.86 billion at June 30, 2019, an annualized decrease of 1% compared to assets of $1.87 billion at December 31, 2018. Total gross loans were $1.57 billion at June 30, 2019 and $1.60 billion at December 31, 2018. Deposits decreased to $1.48 billion compared to $1.50 billion at December 31, 2018, an annualized decrease of 3% over December 31, 2018.

Asset Quality

Nonperforming assets as a percentage of total assets was 0.69% at June 30, 2019, down from 0.75% at December 31, 2018. Net charge-offs to average loans was 0.04% for the quarter ended June 30, 2019. The allowance for loan losses at June 30, 2019 was $13.9 million, representing 0.89% of total loans. The Company continues to work on the resolution of its previously disclosed nonperforming lending relationship and progress to date has been in line with the Company's estimates.

Capital

Shareholders’ equity totaled $176.9 million as of June 30, 2019, an increase of $2.7 million compared to December 31, 2018, primarily a result of net income for the six months ended June 30, 2019 of $10.7 million, offset by dividends paid of $2.0 million, common stock repurchased of $1.0 million and a $5.9 million unfavorable impact to accumulated other comprehensive income driven by fair value marks related to hedge positions involving interest rate swaps. As of June 30, 2019, the tangible common equity ratio and tangible book value per share were 9.38% and $22.47, respectively.

About Bankwell Financial Group

Bankwell is a commercial bank that serves the banking needs of residents and businesses throughout Fairfield and New Haven Counties, Connecticut. For more information about this press release, interested parties may contact Christopher R. Gruseke, President and Chief Executive Officer or Penko Ivanov, Executive Vice President and Chief Financial Officer of Bankwell Financial Group at (203) 652-0166.

For more information, visit www.mybankwell.com.

This press release may contain certain forward-looking statements about the Company. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and its subsidiaries are engaged.

Non-GAAP Financial Measures

In addition to evaluating the Company's financial performance in accordance with U.S. generally accepted accounting principles ("GAAP"), management may evaluate certain non-GAAP financial measures, such as the efficiency ratio. A computation and reconciliation of certain non-GAAP financial measures used for these purposes is contained in the accompanying Reconciliation of GAAP to Non-GAAP Measures tables. We believe that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends and financial position. For example, the Company believes that the efficiency ratio is useful in the assessment of financial performance, including noninterest expense control. The Company believes that tangible common equity and tangible book value per share are useful to evaluate the relative strength of the Company's capital position. We utilize these measures for internal planning and forecasting purposes. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure.

BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED BALANCE SHEETS (unaudited)
(Dollars in thousands, except share data)

 

June 30,
2019

 

March 31,
2019

 

December 31,
2018

 

June 30,
2018

Assets

 

 

 

 

 

 

 

Cash and due from banks

$

75,647

 

 

$

88,827

 

 

$

75,411

 

 

$

89,214

 

Federal funds sold

3,237

 

 

4,764

 

 

2,701

 

 

105

 

Cash and cash equivalents

78,884

 

 

93,591

 

 

78,112

 

 

89,319

 

 

 

 

 

 

 

 

 

Investment securities

 

 

 

 

 

 

 

Marketable equity securities, at fair value

2,090

 

 

2,049

 

 

2,009

 

 

 

Available for sale investment securities, at fair value

93,017

 

 

96,423

 

 

93,154

 

 

92,608

 

Held to maturity investment securities, at amortized cost

21,318

 

 

21,364

 

 

21,421

 

 

21,505

 

Total investment securities

116,425

 

 

119,836

 

 

116,584

 

 

114,113

 

Loans receivable (net of allowance for loan losses of $13,890, $15,430, $15,462 and $19,006 at June 30, 2019, March 31, 2019, December 31, 2018 and June 30, 2018, respectively)

1,551,620

 

 

1,578,609

 

 

1,586,775

 

 

1,572,591

 

Other real estate owned

1,217

 

 

 

 

 

 

 

Accrued interest receivable

6,165

 

 

6,534

 

 

6,375

 

 

5,522

 

Federal Home Loan Bank stock, at cost

7,475

 

 

7,475

 

 

8,110

 

 

9,333

 

Premises and equipment, net

29,060

 

 

29,629

 

 

19,771

 

 

20,313

 

Bank-owned life insurance

41,178

 

 

40,925

 

 

40,675

 

 

40,146

 

Goodwill

2,589

 

 

2,589

 

 

2,589

 

 

2,589

 

Other intangible assets

251

 

 

270

 

 

290

 

 

334

 

Deferred income taxes, net

5,596

 

 

4,835

 

 

4,347

 

 

4,683

 

Other assets

19,205

 

 

13,465

 

 

10,037

 

 

11,859

 

Total assets

$

1,859,665

 

 

$

1,897,758

 

 

$

1,873,665

 

 

$

1,870,802

 

 

 

 

 

 

 

 

 

Liabilities & Shareholders’ Equity

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

Noninterest bearing deposits

$

161,704

 

 

$

161,844

 

 

$

173,198

 

 

$

168,295

 

Interest bearing deposits

1,316,027

 

 

1,359,521

 

 

1,329,046

 

 

1,297,343

 

Total deposits

1,477,731

 

 

1,521,365

 

 

1,502,244

 

 

1,465,638

 

 

 

 

 

 

 

 

 

Advances from the Federal Home Loan Bank

150,000

 

 

150,000

 

 

160,000

 

 

199,000

 

Subordinated debentures

25,181

 

 

25,168

 

 

25,155

 

 

25,129

 

Accrued expenses and other liabilities

29,813

 

 

24,384

 

 

12,070

 

 

11,462

 

Total liabilities

1,682,725

 

 

1,720,917

 

 

1,699,469

 

 

1,701,229

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

Common stock, no par value

120,064

 

 

120,750

 

 

120,527

 

 

119,824

 

Retained earnings

63,801

 

 

59,247

 

 

54,706

 

 

48,470

 

Accumulated other comprehensive (loss) income

(6,925

)

 

(3,156

)

 

(1,037

)

 

1,279

 

Total shareholders’ equity

176,940

 

 

176,841

 

 

174,196

 

 

169,573

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

$

1,859,665

 

 

$

1,897,758

 

 

$

1,873,665

 

 

$

1,870,802

 

 

 

BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(Dollars in thousands, except share data)

For the Quarter Ended

 

For the Six Months Ended

 

June 30,
2019

 

March 31,
2019

 

December 31,
2018

 

June 30,
2018

 

June 30,
2019

 

June 30,
2018

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

$

19,540

 

 

$

20,096

 

 

$

20,030

 

 

$

18,114

 

 

$

39,636

 

 

$

35,532

 

Interest and dividends on securities

992

 

 

997

 

 

1,009

 

 

975

 

 

1,989

 

 

1,910

 

Interest on cash and cash equivalents

514

 

 

383

 

 

504

 

 

325

 

 

897

 

 

579

 

Total interest and dividend income

21,046

 

 

21,476

 

 

21,543

 

 

19,414

 

 

42,522

 

 

38,021

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

Interest expense on deposits

6,319

 

 

6,100

 

 

5,942

 

 

4,309

 

 

12,419

 

 

7,965

 

Interest expense on borrowings

1,132

 

 

1,103

 

 

1,134

 

 

1,197

 

 

2,235

 

 

2,443

 

Total interest expense

7,451

 

 

7,203

 

 

7,076

 

 

5,506

 

 

14,654

 

 

10,408

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

13,595

 

 

14,273

 

 

14,467

 

 

13,908

 

 

27,868

 

 

27,613

 

(Credit) provision for loan losses

(841

)

 

195

 

 

2,795

 

 

310

 

 

(646

)

 

323

 

Net interest income after (credit) provision for loan losses

14,436

 

 

14,078

 

 

11,672

 

 

13,598

 

 

28,514

 

 

27,290

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

Gains and fees from sales of loans

617

 

 

89

 

 

149

 

 

315

 

 

706

 

 

685

 

Service charges and fees

263

 

 

249

 

 

284

 

 

265

 

 

512

 

 

521

 

Bank owned life insurance

254

 

 

249

 

 

262

 

 

265

 

 

503

 

 

528

 

Net gain on sale of available for sale securities

76

 

 

 

 

 

 

 

 

76

 

 

222

 

Other

126

 

 

721

 

 

(94

)

 

262

 

 

847

 

 

484

 

Total noninterest income

1,336

 

 

1,308

 

 

601

 

 

1,107

 

 

2,644

 

 

2,440

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

4,555

 

 

4,836

 

 

4,503

 

 

4,539

 

 

9,391

 

 

9,567

 

Occupancy and equipment

1,833

 

 

1,887

 

 

1,671

 

 

1,731

 

 

3,720

 

 

3,348

 

Data processing

551

 

 

512

 

 

487

 

 

509

 

 

1,063

 

 

1,034

 

Professional services

519

 

 

590

 

 

583

 

 

424

 

 

1,109

 

 

1,199

 

Marketing

348

 

 

193

 

 

416

 

 

479

 

 

541

 

 

776

 

Director fees

215

 

 

189

 

 

295

 

 

274

 

 

404

 

 

489

 

FDIC insurance

76

 

 

123

 

 

159

 

 

203

 

 

199

 

 

417

 

Amortization of intangibles

19

 

 

19

 

 

20

 

 

24

 

 

38

 

 

48

 

Other

639

 

 

626

 

 

662

 

 

581

 

 

1,265

 

 

1,089

 

Total noninterest expense

8,755

 

 

8,975

 

 

8,796

 

 

8,764

 

 

17,730

 

 

17,967

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax expense

7,017

 

 

6,411

 

 

3,477

 

 

5,941

 

 

13,428

 

 

11,763

 

Income tax expense

1,441

 

 

1,331

 

 

216

 

 

1,226

 

 

2,772

 

 

2,448

 

Net income

$

5,576

 

 

$

5,080

 

 

$

3,261

 

 

$

4,715

 

 

$

10,656

 

 

$

9,315

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Common Share:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.71

 

 

$

0.65

 

 

$

0.42

 

 

$

0.60

 

 

$

1.36

 

 

$

1.19

 

Diluted

$

0.71

 

 

$

0.65

 

 

$

0.41

 

 

$

0.60

 

 

$

1.35

 

 

$

1.19

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

7,773,466

 

 

7,760,460

 

 

7,749,616

 

 

7,722,892

 

 

7,766,999

 

 

7,699,977

 

Diluted

7,790,760

 

 

7,776,378

 

 

7,781,153

 

 

7,761,560

 

 

7,791,975

 

 

7,747,068

 

Dividends per common share

$

0.13

 

 

$

0.13

 

 

$

0.12

 

 

$

0.12

 

 

$

0.26

 

 

$

0.24

 

 

 

BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)
(Dollars in thousands, except share data)

 

For the Quarter Ended

 

For the Six Months Ended

 

June 30,

2019

 

March 31,

2019

 

December 31,
2018

 

June 30,

2018

 

June 30,

2019

 

June 30,

2018

Performance ratios:

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

1.20

%

 

1.10

%

 

0.69

%

 

1.02

%

 

1.15

%

 

1.03

%

Return on average stockholders' equity

12.48

%

 

11.60

%

 

7.28

%

 

11.21

%

 

12.05

%

 

11.28

%

Return on average tangible common equity

12.68

%

 

11.80

%

 

7.40

%

 

11.41

%

 

12.24

%

 

11.48

%

Net interest margin

3.07

%

 

3.19

%

 

3.20

%

 

3.14

%

 

3.13

%

 

3.15

%

Efficiency ratio(1)

58.6

%

 

57.5

%

 

58.2

%

 

58.2

%

 

58.0

%

 

60.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Net loan charge-offs as a % of average loans

0.04

%

 

0.01

%

 

0.41

%

 

0.01

%

 

0.06

%

 

0.01

%

 

As of

 

June 30,

2019

 

March 31,

2019

 

December 31,
2018

 

June 30,
2018

Capital ratios:

 

 

 

 

 

 

 

Total Common Equity Tier 1 Capital to Risk-Weighted Assets(2)

12.40

%

 

12.00

%

 

11.56

%

 

11.31

%

Total Capital to Risk-Weighted Assets(2)

13.26

%

 

12.94

%

 

12.50

%

 

12.47

%

Tier I Capital to Risk-Weighted Assets(2)

12.40

%

 

12.00

%

 

11.56

%

 

11.31

%

Tier I Capital to Average Assets(2)

10.75

%

 

10.53

%

 

10.14

%

 

10.03

%

Tangible common equity to tangible assets

9.38

%

 

9.18

%

 

9.16

%

 

8.92

%

 

 

 

 

 

 

 

 

Tangible book value per common share(3)

$

22.47

 

 

$

22.38

 

 

$

22.06

 

 

$

21.56

 

 

 

 

 

 

 

 

 

Asset quality:

 

 

 

 

 

 

 

Nonaccrual loans

$

11,688

 

 

$

13,233

 

 

$

14,082

 

 

$

23,325

 

Other real estate owned

1,217

 

 

 

 

 

 

 

Total nonperforming assets

$

12,905

 

 

$

13,233

 

 

$

14,082

 

 

$

23,325

 

 

 

 

 

 

 

 

 

Nonperforming loans as a % of total loans

0.75

%

 

0.83

%

 

0.88

%

 

1.46

%

Nonperforming assets as a % of total assets

0.69

%

 

0.70

%

 

0.75

%

 

1.25

%

Allowance for loan losses as a % of total loans

0.89

%

 

0.97

%

 

0.96

%

 

1.19

%

Allowance for loan losses as a % of nonperforming loans

118.84

%

 

116.60

%

 

109.80

%

 

81.48

%

  1. Efficiency ratio is defined as noninterest expense, less other real estate owned expenses and amortization of intangible assets, divided by our operating revenue, which is equal to net interest income plus noninterest income excluding gains and losses on sales of securities and gains and losses on other real estate owned. In our judgment, the adjustments made to operating revenue allow investors and analysts to better assess our operating expenses in relation to our core operating revenue by removing the volatility that is associated with certain one-time items and other discrete items that are unrelated to our core business.
  2. Represents Bank ratios. Current period capital ratios are preliminary subject to finalization of the FDIC Call Report.
  3. Excludes unvested restricted shares of 94,598, 99,061, 77,624, and 112,009 as of June 30, 2019, March 31, 2019, December 31, 2018, and June 30, 2018, respectively.

     

BANKWELL FINANCIAL GROUP, INC.
LOAN & DEPOSIT PORTFOLIO (unaudited)
(Dollars in thousands)

Period End Loan Composition

June 30,

2019

 

March 31,

2019

 

December 31,
2018

 

Current QTD
% Change

 

YTD
% Change

Residential Real Estate

$

164,066

 

 

$

174,054

 

 

$

178,079

 

 

(5.7

)%

 

(7.9

)%

Commercial Real Estate(1)

1,080,846

 

 

1,097,354

 

 

1,094,066

 

 

(1.5

)%

 

(1.2

)%

Construction

89,236

 

 

88,653

 

 

73,191

 

 

0.7

%

 

21.9

%

Total Real Estate Loans

1,334,148

 

 

1,360,061

 

 

1,345,336

 

 

(1.9

)%

 

(0.8

)%

 

 

 

 

 

 

 

 

 

 

Commercial Business

233,364

 

 

236,110

 

 

258,978

 

 

(1.2

)%

 

(9.9

)%

 

 

 

 

 

 

 

 

 

 

Consumer

297

 

 

248

 

 

412

 

 

19.8

%

 

(27.9

)%

Total Loans

$

1,567,809

 

 

$

1,596,419

 

 

$

1,604,726

 

 

(1.8

)%

 

(2.3

)%

 

 

 

 

 

 

 

 

 

 

(1) Includes owner occupied commercial real estate.

 

 

Period End Deposit Composition

June 30,

2019

 

March 31,

2019

 

December 31,
2018

 

Current QTD %
Change

 

YTD
% Change

Noninterest bearing demand

$

161,704

 

 

$

161,844

 

 

$

173,198

 

 

(0.1

)%

 

(6.6

)%

NOW

67,793

 

 

61,719

 

 

61,869

 

 

9.8

%

 

9.6

%

Money Market

434,385

 

 

469,095

 

 

471,968

 

 

(7.4

)%

 

(8.0

)%

Savings

174,319

 

 

178,960

 

 

180,487

 

 

(2.6

)%

 

(3.4

)%

Time

639,530

 

 

649,747

 

 

614,722

 

 

(1.6

)%

 

4.0

%

Total Deposits

$

1,477,731

 

 

$

1,521,365

 

 

$

1,502,244

 

 

(2.9

)%

 

(1.6

)%

 

BANKWELL FINANCIAL GROUP, INC.
NONINTEREST INCOME & EXPENSE - QTD (unaudited)
(Dollars in thousands)

 

For the Quarter Ended

 

 

 

 

Noninterest income

June 30,

2019

 

March 31,
2019

 

June 30,
2018

 

June 19 vs. March 19
% Change

 

June 19 vs. June 18
% Change

Gains and fees from sales of loans

$

617

 

 

$

89

 

 

$

315

 

 

593.3

%

 

95.9

%

Service charges and fees

263

 

 

249

 

 

265

 

 

5.6

%

 

(0.8

)%

Bank owned life insurance

254

 

 

249

 

 

265

 

 

2.0

%

 

(4.2

)%

Net gain on sale of available for sale securities

76

 

 

 

 

 

 

100.0

%

 

100.0

%

Other

126

 

 

721

 

 

262

 

 

(82.5

)%

 

(51.9

)%

Total noninterest income

$

1,336

 

 

$

1,308

 

 

$

1,107

 

 

2.1

%

 

20.7

%

 

For the Quarter Ended

 

 

 

 

Noninterest expense

June 30,

2019

 

March 31,
2019

 

June 30,
2018

 

June 19 vs. March 19
% Change

 

June 19 vs. June 18
% Change

Salaries and employee benefits

$

4,555

 

 

$

4,836

 

 

$

4,539

 

 

(5.8

)%

 

0.4

%

Occupancy and equipment

1,833

 

 

1,887

 

 

1,731

 

 

(2.9

)%

 

5.9

%

Data processing

551

 

 

512

 

 

509

 

 

7.6

%

 

8.3

%

Professional services

519

 

 

590

 

 

424

 

 

(12.0

)%

 

22.4

%

Marketing

348

 

 

193

 

 

479

 

 

80.3

%

 

(27.3

)%

Director fees

215

 

 

189

 

 

274

 

 

13.8

%

 

(21.5

)%

FDIC insurance

76

 

 

123

 

 

203

 

 

(38.2

)%

 

(62.6

)%

Amortization of intangibles

19

 

 

19

 

 

24

 

 

%

 

(20.8

)%

Other

639

 

 

626

 

 

581

 

 

2.1

%

 

10.0

%

Total noninterest expense

$

8,755

 

 

$

8,975

 

 

$

8,764

 

 

(2.5

)%

 

(0.1

)%

 

BANKWELL FINANCIAL GROUP, INC.
NONINTEREST INCOME & EXPENSE - YTD (unaudited)
(Dollars in thousands)

 

For the Six Months Ended

 

 

Noninterest income

June 30,

2019

 

June 30,
2018

 

% Change

Gains and fees from sales of loans

$

706

 

 

$

685

 

 

3.1

%

Service charges and fees

512

 

 

521

 

 

(1.7

)%

Bank owned life insurance

503

 

 

528

 

 

(4.7

)%

Net gain on sale of available for sale securities

76

 

 

222

 

 

(65.8

)%

Other

847

 

 

484

 

 

75.0

%

Total noninterest income

$

2,644

 

 

$

2,440

 

 

8.4

%

 

For the Six Months Ended

 

 

Noninterest expense

June 30,

2019

 

June 30,
2018

 

% Change

Salaries and employee benefits

$

9,391

 

 

$

9,567

 

 

(1.8

)%

Occupancy and equipment

3,720

 

 

3,348

 

 

11.1

%

Professional services

1,109

 

 

1,199

 

 

(7.5

)%

Data processing

1,063

 

 

1,034

 

 

2.8

%

Marketing

541

 

 

776

 

 

(30.3

)%

Director fees

404

 

 

489

 

 

(17.4

)%

FDIC insurance

199

 

 

417

 

 

(52.3

)%

Amortization of intangibles

38

 

 

48

 

 

(20.8

)%

Other

1,265

 

 

1,089

 

 

16.2

%

Total noninterest expense

$

17,730

 

 

$

17,967

 

 

(1.3

)%

 

BANKWELL FINANCIAL GROUP, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited)
(Dollars in thousands)

 

As of

Computation of Tangible Common Equity to Tangible Assets

June 30,

2019

 

March 31,

2019

 

December 31,

2018

 

June 30,

2018

Total Equity

$

176,940

 

 

$

176,841

 

 

$

174,196

 

 

$

169,573

 

Less:

 

 

 

 

 

 

 

Goodwill

2,589

 

 

2,589

 

 

2,589

 

 

2,589

 

Other intangibles

251

 

 

270

 

 

290

 

 

334

 

Tangible Common Equity

$

174,100

 

 

$

173,982

 

 

$

171,317

 

 

$

166,650

 

 

 

 

 

 

 

 

 

Total Assets

$

1,859,665

 

 

$

1,897,758

 

 

$

1,873,665

 

 

$

1,870,802

 

Less:

 

 

 

 

 

 

 

Goodwill

2,589

 

 

2,589

 

 

2,589

 

 

2,589

 

Other intangibles

251

 

 

270

 

 

290

 

 

334

 

Tangible Assets

$

1,856,825

 

 

$

1,894,899

 

 

$

1,870,786

 

 

$

1,867,879

 

 

 

 

 

 

 

 

 

Tangible Common Equity to Tangible Assets

9.38

%

 

9.18

%

 

9.16

%

 

8.92

%

 

As of

Computation of Tangible Book Value per Common Share

June 30,

2019

 

March 31,

2019

 

December 31,

2018

 

June 30,

2018

Total shareholders' equity

$

176,940

 

 

$

176,841

 

 

$

174,196

 

 

$

169,573

 

Less:

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

Common shareholders' equity

176,940

 

 

176,841

 

 

174,196

 

 

169,573

 

Less:

 

 

 

 

 

 

 

Goodwill

2,589

 

 

2,589

 

 

2,589

 

 

2,589

 

Other intangibles

251

 

 

270

 

 

290

 

 

334

 

Tangible common shareholders' equity

174,100

 

 

173,982

 

 

171,317

 

 

166,650

 

Common shares issued

7,875,271

 

 

7,873,471

 

 

7,842,271

 

 

7,841,720

 

Less:

 

 

 

 

 

 

 

Shares of unvested restricted stock

94,598

 

 

99,061

 

 

77,624

 

 

112,099

 

Treasury stock

34,168

 

 

 

 

 

 

 

Common shares outstanding

7,746,505

 

 

7,774,410

 

 

7,764,647

 

 

7,729,621

 

Book value per share

$

22.84

 

 

$

22.75

 

 

$

22.43

 

 

$

21.94

 

Less:

 

 

 

 

 

 

 

Effects of intangible assets

$

0.37

 

 

$

0.37

 

 

$

0.37

 

 

$

0.38

 

 

 

 

 

 

 

 

 

Tangible Book Value per Common Share

$

22.47

 

 

$

22.38

 

 

$

22.06

 

 

$

21.56

 

 

BANKWELL FINANCIAL GROUP, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited) - Continued
(Dollars in thousands, except share data)

 

For the Quarter Ended

 

For the Six Months Ended

Computation of Efficiency Ratio

June 30,

2019

 

March 31,

2019

 

December 31,

2018

 

June 30,

2018

 

June 30,

2019

 

June 30,

2018

Noninterest expense

$

8,755

 

 

$

8,975

 

 

$

8,796

 

 

$

8,764

 

 

$

17,730

 

 

$

17,967

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

19

 

 

19

 

 

20

 

 

24

 

 

38

 

 

48

 

Other real estate owned expenses

24

 

 

 

 

 

 

 

 

24

 

 

 

Adjusted noninterest expense

$

8,712

 

 

$

8,956

 

 

$

8,776

 

 

$

8,740

 

 

$

17,668

 

 

$

17,919

 

Net interest income

$

13,595

 

 

$

14,273

 

 

$

14,467

 

 

$

13,908

 

 

$

27,868

 

 

$

27,613

 

Noninterest income

1,336

 

 

1,308

 

 

601

 

 

1,107

 

 

2,644

 

 

2,440

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Net gain on sale of available for sale securities

76

 

 

 

 

 

 

 

 

76

 

 

222

 

Adjusted operating revenue

$

14,855

 

 

$

15,581

 

 

$

15,068

 

 

$

15,015

 

 

$

30,436

 

 

$

29,831

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

58.6

%

 

57.5

%

 

58.2

%

 

58.2

%

 

58.0

%

 

60.1

%

 

For the Quarter Ended

 

For the Six Months Ended

Computation of Return on Average Tangible Common Equity

June 30,

2019

 

March 31,

2019

 

December 31,

2018

 

June 30,

2018

 

June 30,

2019

 

June 30,

2018

Net Income Attributable to Common Shareholders

$

5,576

 

 

$

5,080

 

 

$

3,261

 

 

$

4,715

 

 

$

10,656

 

 

$

9,315

 

Total average shareholders' equity

$

179,217

 

 

$

177,532

 

 

$

177,685

 

 

$

168,684

 

 

$

178,387

 

 

$

166,540

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Average Goodwill

2,589

 

 

2,589

 

 

2,589

 

 

2,589

 

 

2,589

 

 

2,589

 

Average Other intangibles

264

 

 

283

 

 

302

 

 

334

 

 

273

 

 

334

 

Average tangible common equity

$

176,364

 

 

$

174,660

 

 

$

174,794

 

 

$

165,761

 

 

$

175,525

 

 

$

163,617

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Return on Average Tangible Common Equity

12.68

%

 

11.80

%

 

7.40

%

 

11.41

%

 

12.24

%

 

11.48

%

 

BANKWELL FINANCIAL GROUP, INC.
NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - QTD (unaudited)
(Dollars in thousands)

 

For the Quarter Ended

 

June 30, 2019

 

June 30, 2018

 

Average

Balance

 

Interest

 

Yield/

Rate (5)

 

Average

Balance

 

Interest

 

Yield/

Rate (5)

Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and Fed funds sold

$

92,493

 

 

$

514

 

 

2.23

%

 

$

81,879

 

 

$

325

 

 

1.59

%

Securities(1)

119,999

 

 

945

 

 

3.15

%

 

119,893

 

 

921

 

 

3.07

%

Loans:

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

1,052,936

 

 

13,201

 

 

4.96

%

 

996,269

 

 

11,400

 

 

4.53

%

Residential real estate

170,180

 

 

1,630

 

 

3.83

%

 

193,336

 

 

1,786

 

 

3.69

%

Construction(2)

85,933

 

 

1,147

 

 

5.28

%

 

92,945

 

 

1,180

 

 

5.02

%

Commercial business

252,814

 

 

3,558

 

 

5.57

%

 

283,865

 

 

3,740

 

 

5.21

%

Consumer

270

 

 

4

 

 

6.54

%

 

536

 

 

8

 

 

5.97

%

Total loans

1,562,133

 

 

19,540

 

 

4.95

%

 

1,566,951

 

 

18,114

 

 

4.57

%

Federal Home Loan Bank stock

7,474

 

 

116

 

 

6.23

%

 

9,330

 

 

125

 

 

5.37

%

Total earning assets

1,782,099

 

 

$

21,115

 

 

4.69

%

 

1,778,053

 

 

$

19,485

 

 

4.34

%

Other assets

85,117

 

 

 

 

 

 

68,334

 

 

 

 

 

Total assets

$

1,867,216

 

 

 

 

 

 

$

1,846,387

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

NOW

$

64,316

 

 

$

28

 

 

0.17

%

 

$

63,870

 

 

$

21

 

 

0.13

%

Money market

444,848

 

 

1,847

 

 

1.67

%

 

496,548

 

 

1,518

 

 

1.23

%

Savings

174,626

 

 

743

 

 

1.71

%

 

100,893

 

 

267

 

 

1.06

%

Time

644,723

 

 

3,701

 

 

2.30

%

 

619,262

 

 

2,503

 

 

1.62

%

Total interest bearing deposits

1,328,513

 

 

6,319

 

 

1.91

%

 

1,280,573

 

 

4,309

 

 

1.35

%

Borrowed Money

175,172

 

 

1,132

 

 

2.56

%

 

224,120

 

 

1,197

 

 

2.11

%

Total interest bearing liabilities

1,503,685

 

 

$

7,451

 

 

1.99

%

 

1,504,693

 

 

$

5,506

 

 

1.47

%

Noninterest bearing deposits

159,021

 

 

 

 

 

 

160,275