EX-99.1 2 ex991q22024earningsrelease.htm EX-99.1 Document

BANKWELL FINANCIAL GROUP REPORTS OPERATING RESULTS FOR THE SECOND QUARTER AND DECLARES THIRD QUARTER DIVIDEND
New Canaan, CT – July 24, 2024 – Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $1.1 million, or $0.14 per share for the second quarter of 2024, versus $8.0 million, or $1.02 per share, for the same period in 2023. Pre-tax, pre-provision net revenue ("PPNR") was $9.7 million, or $1.25 per share, for the second quarter of 2024, versus $12.8 million, or $1.68 per share for the same period in 2023.
The Company's Board of Directors declared a $0.20 per share cash dividend, payable August 23, 2024 to shareholders of record on August 12, 2024.
We recommend reading this earnings release in conjunction with the Second Quarter 2024 Investor Presentation, located at http://investor.mybankwell.com/Presentations and included as an exhibit to our July 24, 2024 Current Report on Form 8-K.
Notes Bankwell Financial Group President and CEO, Christopher R. Gruseke:

"The Company’s core profitability has begun to expand; PPNR Return on Average Assets grew to 1.22% for the quarter, while the Net interest margin (“NIM”) has expanded to 2.75%. We continue to achieve peer-leading operational efficiency with a Noninterest Expense to Average Assets ratio of 1.55% for the quarter. Going forward, the Company’s liability sensitive balance sheet is well positioned for any potential Federal Reserve rate cuts.

Earnings per share for the second quarter were reduced by approximately $0.66 due to a specific reserve taken on a non-real estate related commercial credit. The Company announced this addition to its Allowance for Credit Losses in its 8-K filed on July 2, 2024. Notwithstanding this idiosyncratic credit event, other areas of the loan portfolio have experienced improving credit trends. A significant portion of criticized and classified loans have demonstrated improved operating results and may be subject to future credit upgrades if these trends continue. Additional details regarding the specific reserve as well as other credit metrics can be found in the accompanying Investor Presentation.

We are also pleased to announce that the Company will host its first earnings call after third quarter financial results are released in October 2024. The date and time of that call will be announced in the coming weeks."
Second Quarter 2024 Highlights:
•PPNR was $9.7 million and PPNR return on average assets was 1.22% for the quarter ended June 30, 2024.
•Net income of $1.1 million for the quarter reflects the impact of an $8.2 million provision for credit losses.
◦$6.6 million of the provision for credit losses is related to a specific reserve taken against an $8.7 million commercial business credit1.
•The net interest margin was 2.75% and 2.73% for the quarter and six months ended June 30, 2024, respectively.
•Noninterest expense to average assets was 1.55% and 1.60% for the quarter and six months ended June 30, 2024, respectively.
•Total gross loans were $2.7 billion, decreasing $61.4 million, or 2.3%, compared to December 31, 2023.
•Average yield on total loans was 6.37% for the six months ended June 30, 2024.
•Deposits were $2.7 billion, decreasing $74.4 million, or 2.7%, compared to December 31, 2023.
•Brokered deposits decreased $144.2 million compared to December 31, 2023.
•FDIC-insured deposits totaled $1.9 billion and represent 72.9% of total deposits as of June 30, 2024.
•Return on average assets was 0.14% and 0.31% for the quarter and six months ended June 30, 2024, respectively.
•Return on average tangible common equity was 1.67% and 3.65% for the quarter and six months ended June 30, 2024, respectively.
•Investment securities totaled $138.0 million and represent 4.4% of total assets.
1

•The Company repurchased 40,140 shares and 76,320 at the weighted average prices of $24.55 and $24.94 per share for the quarter and six months ended June 30, 2024, respectively.

1 - 8-K was filed on July 2, 2024.
Earnings and Performance

Revenues (net interest income plus noninterest income) for the quarter ended June 30, 2024 were $21.9 million, versus $25.4 million for the quarter ended June 30, 2023. Revenues for the six months ended June 30, 2024 were $44.0 million, versus $52.5 million for the six months ended June 30, 2023. The decrease in revenues for the quarter and six months ended June 30, 2024 was attributable to an increase in interest expense on deposits and lower gains from loan sales partially offset by an increase in interest and fees on loans, given higher loan yields2 and prepayment fees.
Net income for the quarter ended June 30, 2024 was $1.1 million, versus $8.0 million for the quarter ended June 30, 2023. Net income for the six months ended June 30, 2024 was $4.9 million, versus $18.4 million for the six months ended June 30, 2023. The decrease in net income for the quarter and six months ended 2024 was primarily due to the aforementioned decrease in revenues and an increase in provision for credit losses.
Basic and diluted earnings per share were $0.14 and $0.14, respectively, for the quarter ended June 30, 2024 compared to basic and diluted earnings per share of $1.02 and $1.02, respectively, for the quarter ended June 30, 2023. Basic and diluted earnings per share were $0.62 and $0.62, respectively, for the six months ended June 30, 2024 compared to basic and diluted earnings per share of $2.36 and $2.34, respectively, for the six months ended June 30, 2023.
The net interest margin (fully taxable equivalent basis) for the quarters ended June 30, 2024 and June 30, 2023 was 2.75% and 3.07%, respectively. The net interest margin (fully taxable equivalent basis) for the six months ended June 30, 2024 and June 30, 2023 was 2.73% and 3.15%, respectively. The decrease in the net interest margin was due to an increase in funding costs partially offset by an increase in interest income on earning assets.
2 - The increase in overall loan yields was 28 bps and 38 bps for the quarter and six months ended June 30, 2024, respectively.
Allowance for Credit Losses - Loans ("ACL-Loans")

The ACL-Loans was $36.1 million as of June 30, 2024 compared to $27.9 million as of December 31, 2023. The ACL-Loans as a percentage of total loans was 1.36% as of June 30, 2024 compared to 1.03% as of December 31, 2023. Provision for credit losses was $8.2 million for the quarter ended June 30, 2024. The increase in the provision for credit losses for the quarter was primarily due to an additional $7.4 million for two loans. Of the $7.4 million, $6.6 million is related to a specific reserve taken against an $8.7 million commercial business credit. The credit had been previously reported as a non-performing loan as of the fourth quarter of 2023 and had previously carried a $0.4 million specific reserve. The Company's estimated remaining exposure for the commercial business credit is $1.7 million. The additional $0.8 million specific reserve was related to a construction loan.
Financial Condition
Assets totaled $3.1 billion at June 30, 2024, a decrease of $73.8 million, or 2.3% compared to December 31, 2023. Gross loans totaled $2.7 billion at June 30, 2024, a decrease of $61.4 million, or 2.3% compared to December 31, 2023. Deposits totaled $2.7 billion at June 30, 2024, a decrease of $74.4 million, or 2.7% compared to December 31, 2023.
Capital
Shareholders’ equity totaled $267.0 million as of June 30, 2024, an increase of $1.2 million compared to December 31, 2023, primarily a result of net income of $4.9 million for the six months ended June 30, 2024. The increase was partially offset by dividends paid of $3.2 million.
2

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 Courtney E. Sacchetti, 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 banking industry or 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, tangible assets, tangible common equity to tangible assets, tangible common shareholders' equity, fully diluted tangible book value per common share, adjusted noninterest expense, operating revenue, efficiency ratio, average tangible common equity, annualized return on average tangible common equity, return on average assets, return on average shareholders' equity, pre-tax, pre-provision net revenue, pre-tax, pre-provision net revenue on average assets, and the dividend payout ratio are useful to evaluate the relative strength of the Company's performance and 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.
3

BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED BALANCE SHEETS (unaudited)
(Dollars in thousands)
June 30,
2024		March 31,
2024		December 31,
2023		June 30,
2023
ASSETS
Cash and due from banks$234,277 $245,043 $267,521 $207,345 
Federal funds sold17,103 2,584 1,636 54,706 
Cash and cash equivalents251,380 247,627 269,157 262,051 
Investment securities
Marketable equity securities, at fair value2,079 2,069 2,070 2,017 
Available for sale investment securities, at fair value107,635 108,417 109,736 99,938 
Held to maturity investment securities, at amortized cost28,286 15,739 15,817 15,884 
Total investment securities138,000 126,225 127,623 117,839 
Loans receivable (net of ACL-Loans of $36,083, $27,991, $27,946, and $30,694 at June 30, 2024, March 31, 2024, December 31, 2023, and June 30, 2023, respectively)
2,616,691 2,646,686 2,685,301 2,736,607 
Accrued interest receivable14,675 15,104 14,863 14,208 
Federal Home Loan Bank stock, at cost5,655 5,655 5,696 5,696 
Premises and equipment, net25,599 26,161 27,018 27,658 
Bank-owned life insurance52,097 51,764 51,435 50,816 
Goodwill2,589 2,589 2,589 2,589 
Deferred income taxes, net11,345 9,137 9,383 10,014 
Other assets23,623 24,326 22,417 25,229 
Total assets$3,141,654 $3,155,274 $3,215,482 $3,252,707 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits
Noninterest bearing deposits$328,475 $376,248 $346,172 $367,635 
Interest bearing deposits2,333,900 2,297,274 2,390,585 2,421,228 
Total deposits2,662,375 2,673,522 2,736,757 2,788,863 
Advances from the Federal Home Loan Bank90,000 90,000 90,000 90,000 
Subordinated debentures69,328 69,266 69,205 69,082 
Accrued expenses and other liabilities52,975 54,454 53,768 55,949 
Total liabilities2,874,678 2,887,242 2,949,730 3,003,894 
Shareholders’ equity
Common stock, no par value118,037 118,401 118,247 116,541 
Retained earnings150,895 151,350 149,169 133,988 
Accumulated other comprehensive (loss) (1,956)(1,719)(1,664)(1,716)
Total shareholders’ equity266,976 268,032 265,752 248,813 
Total liabilities and shareholders’ equity$3,141,654 $3,155,274 $3,215,482 $3,252,707 
4

BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(Dollars in thousands, except share data)
For the Quarter EndedFor the Six Months Ended
June 30,
2024		March 31,
2024		December 31,
2023		June 30,
2023		June 30,
2024		June 30,
2023
Interest and dividend income
Interest and fees on loans$43,060 $43,325 $44,122 $42,482 $86,385 $82,205 
Interest and dividends on securities1,190 1,130 1,108 1,002 2,320 2,002 
Interest on cash and cash equivalents3,429 3,826 4,164 3,022 7,255 6,590 
Total interest and dividend income47,679 48,281 49,394 46,506 95,960 90,797 
Interest expense
Interest expense on deposits24,677 25,362 25,307 20,777 50,039 37,810 
Interest expense on borrowings1,783 1,772 1,842 1,738 3,555 3,455 
Total interest expense26,460 27,134 27,149 22,515 53,594 41,265 
Net interest income21,219 21,147 22,245 23,991 42,366 49,532 
Provision (credit) for credit losses8,183 3,683 (960)2,579 11,866 3,405 
Net interest income after provision for credit losses13,036 17,464 23,205 21,412 30,500 46,127 
Noninterest income
Bank owned life insurance333 329 316 292 662 573 
Service charges and fees495 304 688 361 799 647 
Gains and fees from sales of loans45 321 79 725 366 1,656 
Other(190)(39)46 23 (229)51 
Total noninterest income683 915 1,129 1,401 1,598 2,927 
Noninterest expense
Salaries and employee benefits6,176 6,291 6,088 6,390 12,467 12,471 
Occupancy and equipment2,238 2,322 2,231 2,204 4,561 4,288 
Professional services989 1,065 1,033 692 2,054 2,014 
Data processing755 740 747 729 1,495 1,400 
Director fees306 900 605 453 1,206 845 
FDIC insurance705 930 1,026 1,050 1,635 2,112 
Marketing90 114 139 177 203 328 
Other986 935 995 946 1,921 1,874 
Total noninterest expense12,245 13,297 12,864 12,641 25,542 25,332 
Income before income tax expense1,474 5,082 11,470 10,172 6,556 23,722 
Income tax expense356 1,319 2,946 2,189 1,675 5,360 
Net income$1,118 $3,763 $8,524 $7,983 $4,881 $18,362 
Earnings Per Common Share:
Basic$0.14 $0.48 $1.09 $1.02 $0.62 $2.36 
Diluted$0.14 $0.48 $1.09 $1.02 $0.62 $2.34 
Weighted Average Common Shares Outstanding:
Basic7,747,675 7,663,521 7,603,938 7,593,417 7,705,598 7,574,160 
Diluted7,723,888 7,687,679 7,650,451 7,601,562 7,721,880 7,639,828 
Dividends per common share$0.20 $0.20 $0.20 $0.20 $0.40 $0.40 
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BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)

For the Quarter EndedFor the Six Months Ended
June 30,
2024		March 31,
2024		December 31,
2023		June 30,
2023		June 30,
2024		June 30,
2023
Performance ratios:
Return on average assets0.14 %0.47 %1.03 %0.99 %0.31 %1.14 %
Return on average shareholders' equity1.65 %5.59 %12.82 %12.91 %3.61 %15.15 %
Return on average tangible common equity1.67 %5.65 %12.95 %13.05 %3.65 %15.31 %
Net interest margin2.75 %2.71 %2.81 %3.07 %2.73 %3.15 %
Efficiency ratio(1)
55.9 %60.3 %55.0 %49.8 %58.1 %48.3 %
Net loan charge-offs as a % of average loans0.01 %0.11 %0.01 %— %0.13 %0.02 %
Dividend payout ratio(2)
142.86 %41.67 %18.35 %19.61 %64.52 %17.09 %
(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)The dividend payout ratio is calculated by dividing dividends per share by earnings per share.

As of
June 30,
2024		March 31,
2024		December 31,
2023		June 30,
2023
Capital ratios:
Total Common Equity Tier 1 Capital to Risk-Weighted Assets(1)
11.73 %11.60 %11.30 %10.34 %
Total Capital to Risk-Weighted Assets(1)
12.98 %12.63 %12.32 %11.41 %
Tier I Capital to Risk-Weighted Assets(1)
11.73 %11.60 %11.30 %10.34 %
Tier I Capital to Average Assets(1)
10.17 %10.09 %9.81 %9.41 %
Tangible common equity to tangible assets8.42 %8.42 %8.19 %7.58 %
Fully diluted tangible book value per common share$33.61 $33.57 $33.39 $31.45 
(1)Represents Bank ratios. Current period capital ratios are preliminary subject to finalization of the FDIC Call Report.

6

BANKWELL FINANCIAL GROUP, INC.
ASSET QUALITY (unaudited)
(Dollars in thousands)
For the Quarter Ended
June 30,
2024		March 31,
2024		December 31,
2023		June 30,
2023
ACL-Loans:
Balance at beginning of period$27,991 $27,946 $29,284 $27,998 
Charge-offs:
Residential real estate(9)(132)— — 
Commercial real estate(522)(3,306)(824)— 
Commercial business— (197)— — 
Consumer(12)(49)(15)(25)
Total charge-offs(543)(3,684)(839)(25)
Recoveries:
Residential real estate141 — — — 
Commercial real estate113 — — — 
Commercial business— 27 464 32 
Consumer13 4 3 10 
Total recoveries267 31 467 42 
Net loan (charge-offs) recoveries(276)(3,653)(372)17 
Provision (credit) for credit losses - loans8,368 3,698 (966)2,679 
Balance at end of period$36,083 $27,991 $27,946 $30,694 
As of
June 30,
2024		March 31,
2024		December 31,
2023		June 30,
2023
Asset quality:
Nonaccrual loans
Residential real estate$1,339 $1,237 $1,386 $1,429 
Commercial real estate28,088 19,083 23,009 1,905 
Commercial business17,396 16,841 15,430 2,815 
Construction9,382 9,382 9,382 9,382 
Consumer— — — — 
Total nonaccrual loans56,205 46,543 49,207 15,531 
Other real estate owned— — — — 
Total nonperforming assets$56,205 $46,543 $49,207 $15,531 
Nonperforming loans as a % of total loans2.12 %1.74 %1.81 %0.56 %
Nonperforming assets as a % of total assets1.79 %1.48 %1.53 %0.48 %
ACL-loans as a % of total loans1.36 %1.04 %1.03 %1.11 %
ACL-loans as a % of nonperforming loans64.20 %60.14 %56.79 %197.63 %
Total past due loans to total loans0.84 %1.44 %0.78 %1.30 %
Total nonaccrual loans increased $7.0 million to $56.2 million as of June 30, 2024 when compared to December 31, 2023. The increase was primarily due to a $13.9 million commercial real estate non-owner occupied office loan put on nonaccrual during the six months ended June 30, 2024. This loan represents a 16.5% participation in a $84.3 million club transaction. The increase was partially offset by the payoff of two loans totaling $4.4 million and four loans that were partially charged-off for a total of $4.0 million during the six months ended June 30, 2024.

Nonperforming assets as a percentage of total assets increased to 1.79% at June 30, 2024 from 1.53% at December 31, 2023. The ACL-Loans at June 30, 2024 was $36.1 million, representing 1.36% of total loans.
7

BANKWELL FINANCIAL GROUP, INC.
LOAN & DEPOSIT PORTFOLIO (unaudited)
(Dollars in thousands)
Period End Loan CompositionJune 30,
2024		March 31,
 2024		December 31, 2023 
Current QTD
% Change		YTD
% Change
Residential Real Estate$47,875 $49,098 $50,931 (2.5)%(6.0)%
Commercial Real Estate(1)
1,912,701 1,927,636 1,947,648 (0.8)(1.8)
Construction150,259 151,967 183,414 (1.1)(18.1)
Total Real Estate Loans2,110,835 2,128,701 2,181,993 (0.8)(3.3)
Commercial Business503,444 508,912 500,569 (1.1)0.6 
Consumer42,906 41,946 36,045 2.3 19.0 
Total Loans$2,657,185 $2,679,559 $2,718,607 (0.8)%(2.3)%
(1) Includes owner occupied commercial real estate of $0.7 billion at June 30, 2024, March 31, 2024, and December 31, 2023, respectively.
Gross loans totaled $2.7 billion at June 30, 2024, a decrease of $61.4 million or 2.3% compared to December 31, 2023.
Period End Deposit CompositionJune 30,
2024		March 31,
2024		December 31, 2023 
Current QTD
% Change		YTD
% Change
Noninterest bearing demand$328,475 $376,248 $346,172 (12.7)%(5.1)%
NOW122,112 95,227 90,829 28.2 34.4 
Money Market825,599 818,408 887,352 0.9 (7.0)
Savings91,870 92,188 97,331 (0.3)(5.6)
Time1,294,319 1,291,451 1,315,073 0.2 (1.6)
Total Deposits$2,662,375 $2,673,522 $2,736,757 (0.4)%(2.7)%

Total deposits were $2.7 billion at June 30, 2024, a decrease of $74.4 million, or 2.7%, when compared to December 31, 2023. Brokered deposits have decreased $144.2 million, when compared to December 31, 2023.

8

BANKWELL FINANCIAL GROUP, INC.
NONINTEREST EXPENSE (unaudited)
(Dollars in thousands)
For the Quarter Ended
Noninterest expenseJune 30,
2024		March 31,
 2024		June 30,
2023		June 24 vs. Mar 24
% Change		Jun 24 vs. Jun 23
% Change
Salaries and employee benefits$6,176 $6,291 $6,390 (1.8)%(3.3)%
Occupancy and equipment2,238 2,322 2,204 (3.6)1.5 
Professional services989 1,065 692 (7.1)42.9 
Data processing755 740 729 2.0 3.6 
Director fees306 900 453 (66.0)(32.5)
FDIC insurance705 930 1,050 (24.2)(32.9)
Marketing90 114 177 (21.1)(49.2)
Other986 935 946 5.5 4.2 
Total noninterest expense$12,245 $13,297 $12,641 (7.9)%(3.1)%
Noninterest expense decreased by $0.4 million to $12.2 million for the quarter ended June 30, 2024 compared to the quarter ended June 30, 2023. The decrease in noninterest expense was primarily driven by a decrease in FDIC insurance costs, mainly driven by a reduction in the Bank's brokered deposits.

For the Six Months Ended
Noninterest expenseJune 30,
2024		June 30,
 2023		Jun 24 vs. Jun 23
% Change
Salaries and employee benefits$12,467 $12,471 — %
Occupancy and equipment4,561 4,288 6.4 
Professional services2,054 2,014 2.0 
Data processing1,495 1,400 6.8 
Director fees1,206 845 42.7 
FDIC insurance1,635 2,112 (22.6)
Marketing203 328 (38.1)
Other1,921 1,874 2.5 
Total noninterest expense$25,542 $25,332 0.8 %

Noninterest expense increased by $0.2 million to $25.5 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The increase in noninterest expense was primarily driven by an increase in director fees related to timing of compensation and accelerated vestings in connection with the death of a director. The increase was partially offset by a decrease in FDIC insurance costs, mainly attributable by a reduction in the Bank's brokered deposits.






9




BANKWELL FINANCIAL GROUP, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited)
(Dollars in thousands, except share data)
As of
Computation of Tangible Common Equity to Tangible AssetsJune 30,
2024		March 31,
2024		December 31,
2023		June 30,
2023
Total Equity$266,976 $268,032 $265,752 $248,813 
Less:
Goodwill2,589 2,589 2,589 2,589 
Other intangibles— — — — 
Tangible Common Equity$264,387 $265,443 $263,163 $246,224 
Total Assets$3,141,654 $3,155,274 $3,215,482 $3,252,707 
Less:
Goodwill2,589 2,589 2,589 2,589 
Other intangibles— — — — 
Tangible Assets$3,139,065 $3,152,685 $3,212,893 $3,250,118 
Tangible Common Equity to Tangible Assets8.42 %8.42 %8.19 %7.58 %
As of
Computation of Fully Diluted Tangible Book Value per Common ShareJune 30,
2024		March 31,
2024		December 31, 2023June 30,
2023
Total shareholders' equity$266,976 $268,032 $265,752 $248,813 
Less:
Preferred stock— — — — 
Common shareholders' equity$266,976 $268,032 $265,752 $248,813 
Less:
Goodwill2,589 2,589 2,589 2,589 
Other intangibles— — — — 
Tangible common shareholders' equity$264,387 $265,443 $263,163 $246,224 
Common shares issued and outstanding7,866,499 7,908,180 7,882,616 7,829,950 
Fully Diluted Tangible Book Value per Common Share$33.61 $33.57 $33.39 $31.45 
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For the Quarter EndedFor the Six Months Ended
Computation of PPNRJune 30,
2024		March 31,
2024		December 31, 2023June 30,
2023		June 30,
2024		June 30,
2023
Income before income tax expense$1,474 $5,082 $11,470 $10,172 $6,556 $23,722 
Add:
Provision (credit) for credit losses8,183 3,683 (960)2,579 11,866 3,405 
PPNR$9,657 $8,765 $10,510 $12,751 $18,422 $27,127 
PPNR return on average assets1.22 %1.10 %1.27 %1.58 %1.16 %1.69 %


BANKWELL FINANCIAL GROUP, INC.
EARNINGS PER SHARE ("EPS") (unaudited)
(Dollars in thousands, except share data)
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
(In thousands, except per share data)
Net income$1,118 $7,983 $4,881 $18,362 
Dividends to participating securities(1)
(40)(41)(79)(84)
Undistributed earnings allocated to participating securities(1)
14 (172)(52)(403)
Net income for earnings per share calculation$1,092 $7,770 $4,750 $17,875 
Weighted average shares outstanding, basic7,748 7,593 7,706 7,574 
Effect of dilutive equity-based awards(2)
(24)8 16 66 
Weighted average shares outstanding, diluted7,724 7,601 7,722 7,640 
Net earnings per common share:
Basic earnings per common share$0.14 $1.02 $0.62 $2.36 
Diluted earnings per common share$0.14 $1.02 $0.62 $2.34 
(1)    Represents dividends paid and undistributed earnings allocated to unvested stock-based awards that contain non-forfeitable rights to dividends.
(2)    Represents the effect of the assumed exercise of stock options and the vesting of restricted shares, as applicable, utilizing the treasury stock method.

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BANKWELL FINANCIAL GROUP, INC.
NONINTEREST INCOME (unaudited)
(Dollars in thousands)
For the Quarter Ended
Noninterest incomeJune 30,
2024		March 31,
2024		June 30,
2023		Jun 24 vs. Mar 24
% Change		Jun 24 vs. Jun 23
% Change
Bank owned life insurance$333 $329 $292 1.2 %14.0 %
Service charges and fees495 304 361 62.8 37.1 
Gains and fees from sales of loans45 321 725 (86.0)(93.8)
Other(190)(39)23 UnfavorableUnfavorable
Total noninterest income$683 $915 $1,401 (25.4)%(51.2)%
Noninterest income decreased $0.7 million for the quarter ended June 30, 2024 compared to the quarter ended June 30, 2023. The decrease in noninterest income was driven by lower gains as a result of fewer SBA loan sales for the quarter ended June 30, 2024.
For the Six Months Ended
Noninterest incomeJune 30,
2024		June 30,
2023		Jun 24 vs. Jun 23
% Change
Bank owned life insurance$662 $573 15.5 %
Service charges and fees799 647 23.5 %
Gains and fees from sales of loans366 1,656 (77.9)%
Other(229)51 Unfavorable
Total noninterest income$1,598 $2,927 (45.4)%
Noninterest income decreased $1.3 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The decrease in noninterest income was driven by lower gains as a result of fewer SBA loan sales for the six months ended June 30, 2024.
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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, 2024June 30, 2023
Average
Balance		Interest
Yield/
Rate (4)
Average
Balance		Interest
Yield/
Rate (4)
Assets:
Cash and Fed funds sold$273,301 $3,429 5.05 %$227,777 $3,023 5.32 %
Securities(1)
137,360 1,139 3.32 128,576 955 2.97 
Loans:
Commercial real estate1,901,189 27,654 5.75 1,935,058 27,099 5.54 
Residential real estate49,046 772 6.30 56,981 643 4.51 
Construction159,184 2,871 7.14 206,844 3,691 7.06 
Commercial business523,382 11,028 8.34 557,482 10,646 7.55 
Consumer42,335 735 6.98 29,326 500 6.84 
Total loans2,675,136 43,060 6.37 2,785,691 42,579 6.05 
Federal Home Loan Bank stock5,655 118 8.42 5,610 98 7.00 
Total earning assets3,091,452 $47,746 6.11 %3,147,654 $46,655 5.86 %
Other assets95,453 96,603 
Total assets$3,186,905 $3,244,257 
Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW$107,310 $49 0.18 %$98,048 $42 0.18 %
Money market833,489 8,552 4.13 902,225 8,083 3.59 
Savings90,987 688 3.04 112,585 860 3.06 
Time1,291,595 15,388 4.79 1,298,170 11,792 3.64 
Total interest bearing deposits2,323,381 24,677 4.27 2,411,028 20,777 3.46 
Borrowed Money159,288 1,783 4.43 163,138 1,738 4.21 
Total interest bearing liabilities2,482,669 $26,460 4.29 %2,574,166 $22,515 3.51 %
Noninterest bearing deposits368,516 375,514 
Other liabilities63,177 46,565 
Total liabilities2,914,362 2,996,245 
Shareholders' equity272,543 248,012 
Total liabilities and shareholders' equity$3,186,905 $3,244,257 
Net interest income(2)
$21,286 $24,140 
Interest rate spread1.82 %2.36 %
Net interest margin(3)
2.75 %3.07 %
(1)Average balances and yields for securities are based on amortized cost.
(2)The adjustment for securities and loans taxable equivalency amounted to $67 thousand and $51 thousand for the quarters
ended June 30, 2024 and 2023, respectively.
(3)Annualized net interest income as a percentage of earning assets.
(4)Yields are calculated using the contractual day count convention for each respective product type.


13

BANKWELL FINANCIAL GROUP, INC.
NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - YTD (unaudited)
(Dollars in thousands)
For the Six Months Ended
June 30, 2024June 30, 2023
Average
Balance		Interest
Yield/
Rate (4)
Average
Balance		Interest
Yield/
Rate (4)
Assets:
Cash and Fed funds sold$282,981 $7,255 5.16 %$271,328 $6,590 4.90 %
Securities(1)
136,049 2,199 3.23 129,225 1,912 2.96 
Loans:
Commercial real estate1,911,896 56,295 5.82 1,926,852 52,125 5.38 
Residential real estate49,624 1,490 6.01 58,207 1,286 4.42 
Construction160,080 5,844 7.22 186,684 6,651 7.09 
Commercial business520,188 21,314 8.10 549,963 21,394 7.74 
Consumer41,150 1,442 7.05 23,971 749 6.30 
Total loans2,682,938 86,385 6.37 2,745,677 82,205 5.95 
Federal Home Loan Bank stock5,678 239 8.44 5,442 193 7.14 
Total earning assets3,107,646 $96,078 6.12 %3,151,672 $90,900 5.74 %
Other assets93,179 90,427 
Total assets$3,200,825 $3,242,099 
Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW$99,493 $88 0.18 %$95,494 $81 0.17 %
Money market858,670 17,698 4.14 905,021 14,468 3.22 
Savings91,979 1,402 3.06 124,387 1,586 2.57 
Time1,304,332 30,851 4.76 1,275,417 21,675 3.43 
Total interest bearing deposits2,354,474 50,039 4.27 2,400,319 37,810 3.18 
Borrowed Money159,257 3,555 4.42 162,215 3,454 4.24 
Total interest bearing liabilities2,513,731 $53,594 4.29 %2,562,534 $41,264 3.25 %
Noninterest bearing deposits352,768 389,608 
Other liabilities62,775 45,494 
Total liabilities2,929,274 2,997,636 
Shareholders' equity271,551 244,463 
Total liabilities and shareholders' equity$3,200,825 $3,242,099 
Net interest income(2)
$42,484 $49,636 
Interest rate spread1.83 %2.49 %
Net interest margin(3)
2.73 %3.15 %
(1)Average balances and yields for securities are based on amortized cost.
(2)The adjustment for securities and loans taxable equivalency amounted to $118 thousand and $102 thousand for the six     months ended June 30, 2024 and 2023, respectively.
(3)Annualized net interest income as a percentage of earning assets.
(4)Yields are calculated using the contractual day count convention for each respective product type.
14