Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported record GAAP net income for the fourth quarter and year ended 2021. For the fourth quarter of 2021 net income totaled $7.8 million, or $0.99 per share, versus $0.3 million, or $0.04 per share, for the same period in 2020. For the year ended 2021 net income totaled $26.6 million, or $3.36 per share, versus $5.9 million, or $0.75 per share, for the same period in 2020.
The Company's Board of Directors declared a $0.20 per share cash dividend, payable February 24, 2022 to shareholders of record on February 14, 2022, representing an 11% increase when compared to the prior quarter’s dividend.
We recommend reading this earnings release in conjunction with the Fourth Quarter 2021 Investor Presentation, located at http://investor.mybankwell.com/Presentations and included as an exhibit to our January 26, 2022 Current Report on Form 8-K.
Notes Bankwell Financial Group President and CEO, Christopher R. Gruseke:
“We are proud to announce record performance for the fourth quarter and full year of 2021. In addition to generating a Return on Average Equity of 14% for the year, the Company made significant strides in all aspects of its business. While originating approximately $800 million in loans, we also continued to diversify our asset base. Core deposits grew by 31.7%, year over year, and non-interest bearing deposits increased by 47.6% over the same period.
“I offer my heartfelt gratitude and sincere congratulations to every member of our team. Their hard work and commitment, during a time of historic disruption, has made these impressive achievements possible.
“We enter the year ahead with confidence and momentum and look forward to another outstanding year. Loan and deposit pipelines remain strong. Inclusive of four expected rate hikes by the Federal Reserve, we expect net interest income to grow by 12-14% in 2022.”
Fourth Quarter 2021 Highlights:
- Return on average assets was 1.32% and return on average equity was 15.44% for the quarter ended December 31, 2021.
- The net interest margin improved to 3.43% for the quarter ended December 31, 2021 and 3.17% for the year ended December 31, 2021.
- Total gross loans were $1.9 billion, growing $303.9 million excluding Paycheck Protection Program ("PPP") loans, or 19.1%, compared to December 31, 2020. On a quarterly basis, loans grew $71.7 million, or 3.9% compared to September 30, 2021.
- Gains from loan sales totaled $0.4 million and $2.7 million for the quarter and year ended December 31, 2021, respectively.
- Total deposits were $2.1 billion compared to $1.8 billion at December 31, 2020.
- Noninterest bearing deposits increased by $128.7 million, or 47.6% compared to December 31, 2020.
- The percentage of noninterest bearing deposits to total deposits increased to 18.8% compared to 14.8% at December 31, 2020.
- The cost of interest bearing deposits decreased approximately 35 basis points to 0.54% for the quarter ended December 31, 2021 when compared to the quarter ended December 31, 2020.
- Investment securities totaled $108.4 million and represent 4.4% of total assets.
- Tangible book value per share rose to $26.19 compared to $22.43 at December 31, 2020.
- Shares issued and outstanding were 7,803,166, reflecting repurchases of 59,338 shares of common stock at a weighted average price of $31.29 during the quarter ended December 31, 2021.
- The Company issued a 3.25% fixed-to-floating rate subordinated note due 2031 in the principal amount of $35.0 million. Part of the proceeds were used to repay $15.5 million of previously issued subordinated notes.
Earnings and Performance
Revenues (net interest income plus noninterest income) for the quarter ended December 31, 2021 were $19.8 million, versus $14.9 million for the quarter ended December 31, 2020. Revenues for the year ended December 31, 2021 were $73.5 million, versus $57.7 million for the year ended December 31, 2020. The increase was primarily attributable to lower interest expense on deposits, an increase in interest and fees on loans due to loan growth and from the resumption of loan sales.
Net income for the quarter ended December 31, 2021 was $7.8 million, versus $0.3 million for the quarter ended December 31, 2020. Net income for the year ended December 31, 2021 was $26.6 million, versus $5.9 million for the year ended December 31, 2020. The increase in net income was primarily impacted by the aforementioned increases in revenues, a decrease in noninterest expense, and a decrease in the provision for loan losses resulting from lower loan loss reserves in 2021 when compared to 2020, which saw a large increase in reserves due to the COVID-19 Pandemic.
Basic and diluted earnings per share were $1.00 and $0.99, respectively, for the quarter ended December 31, 2021 compared to basic and diluted earnings per share of $0.04 each for the quarter ended December 31, 2020. Basic and diluted earnings per share were $3.38 and $3.36, respectively, for the year ended December 31, 2021 compared to basic and diluted earnings per share of $0.75 each for the year ended December 31, 2020.
The net interest margin (fully taxable equivalent basis) for the quarters ended December 31, 2021 and December 31, 2020 was 3.43% and 2.66%, respectively. The net interest margin (fully taxable equivalent basis) for the years ended December 31, 2021 and December 31, 2020 was 3.17% and 2.77%, respectively. The increase in the net interest margin was due to lower interest expense from a decrease in rates on interest bearing deposits and a greater proportion of noninterest bearing deposits.
Financial Condition
Assets totaled $2.46 billion at December 31, 2021, compared to assets of $2.25 billion at December 31, 2020. The increase in assets was primarily due to loan growth, partially offset by a decrease in excess liquidity. Gross loans totaled $1.9 billion at December 31, 2021, an increase of $269.3 million compared to December 31, 2020. Excluding PPP loans, gross loans increased by $303.9 million at December 31, 2021 when compared to December 31, 2020. Deposits totaled $2.1 billion at December 31, 2021, compared to deposits of $1.8 billion at December 31, 2020.
Capital
Shareholders’ equity totaled $202.0 million as of December 31, 2021, an increase of $25.4 million compared to December 31, 2020, primarily a result of (i) net income of $26.6 million for the year ended December 31, 2021 and (ii) a $7.0 million favorable impact to accumulated other comprehensive income driven by fair value marks related to hedge positions involving interest rate swaps. The Company's interest rate swaps are used to hedge interest rate risk. The Company's current interest rate swap positions will cause a decrease to other comprehensive income in a falling interest rate environment and an increase in a rising interest rate environment. The increase in Shareholders’ equity was partially offset by dividends paid of $5.0 million and common stock repurchases of $5.1 million.
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, but are not limited to, increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the securities markets, uncertain impacts of, or additional changes in, monetary, fiscal or tax policy to address the impact of COVID-19, prolonged measures to contain the spread of COVID-19 or premature easing of such containment measures, either of which could further exacerbate the effects on the Company’s business and results of operations, 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 book value per share, and return on average tangible common equity 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.
BANKWELL FINANCIAL GROUP, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (Dollars in thousands) |
|||||||||||||||||||
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks |
$ |
291,598 |
|
|
$ |
169,417 |
|
|
$ |
297,851 |
|
|
$ |
351,194 |
|
|
$ |
405,340 |
|
Federal funds sold |
|
53,084 |
|
|
|
8,097 |
|
|
|
4,036 |
|
|
|
10,811 |
|
|
|
4,258 |
|
Cash and cash equivalents |
|
344,682 |
|
|
|
177,514 |
|
|
|
301,887 |
|
|
|
362,005 |
|
|
|
409,598 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities |
|
|
|
|
|
|
|
|
|
||||||||||
Marketable equity securities, at fair value |
|
2,168 |
|
|
|
2,185 |
|
|
|
2,192 |
|
|
|
2,178 |
|
|
|
2,207 |
|
Available for sale investment securities, at fair value |
|
90,198 |
|
|
|
87,565 |
|
|
|
90,983 |
|
|
|
83,218 |
|
|
|
88,605 |
|
Held to maturity investment securities, at amortized cost |
|
16,043 |
|
|
|
16,107 |
|
|
|
16,166 |
|
|
|
16,225 |
|
|
|
16,078 |
|
Total investment securities |
|
108,409 |
|
|
|
105,857 |
|
|
|
109,341 |
|
|
|
101,621 |
|
|
|
106,890 |
|
Loans receivable (net of allowance for loan losses of $16,902, $16,803, $16,672, $20,545, and $21,009 at December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively) |
|
1,875,167 |
|
|
|
1,805,217 |
|
|
|
1,719,274 |
|
|
|
1,650,127 |
|
|
|
1,601,672 |
|
Accrued interest receivable |
|
7,512 |
|
|
|
6,911 |
|
|
|
6,661 |
|
|
|
7,306 |
|
|
|
6,579 |
|
Federal Home Loan Bank stock, at cost |
|
2,814 |
|
|
|
3,632 |
|
|
|
3,844 |
|
|
|
6,446 |
|
|
|
7,860 |
|
Premises and equipment, net |
|
25,588 |
|
|
|
35,118 |
|
|
|
33,916 |
|
|
|
33,386 |
|
|
|
21,762 |
|
Bank-owned life insurance |
|
49,174 |
|
|
|
48,903 |
|
|
|
48,632 |
|
|
|
42,881 |
|
|
|
42,651 |
|
Goodwill |
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
Other intangible assets |
|
— |
|
|
|
48 |
|
|
|
58 |
|
|
|
67 |
|
|
|
76 |
|
Deferred income taxes, net |
|
7,621 |
|
|
|
7,718 |
|
|
|
8,208 |
|
|
|
8,908 |
|
|
|
11,300 |
|
Other assets |
|
32,708 |
|
|
|
33,181 |
|
|
|
35,415 |
|
|
|
29,131 |
|
|
|
42,770 |
|
Total assets |
$ |
2,456,264 |
|
|
$ |
2,226,688 |
|
|
$ |
2,269,825 |
|
|
$ |
2,244,467 |
|
|
$ |
2,253,747 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities |
|
|
|
|
|
|
|
|
|
||||||||||
Deposits |
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest bearing deposits |
$ |
398,956 |
|
|
$ |
338,705 |
|
|
$ |
328,473 |
|
|
$ |
280,947 |
|
|
$ |
270,235 |
|
Interest bearing deposits |
|
1,725,042 |
|
|
|
1,544,118 |
|
|
|
1,610,829 |
|
|
|
1,578,861 |
|
|
|
1,557,081 |
|
Total deposits |
|
2,123,998 |
|
|
|
1,882,823 |
|
|
|
1,939,302 |
|
|
|
1,859,808 |
|
|
|
1,827,316 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Advances from the Federal Home Loan Bank |
|
50,000 |
|
|
|
80,000 |
|
|
|
75,000 |
|
|
|
125,000 |
|
|
|
175,000 |
|
Subordinated debentures |
|
34,441 |
|
|
|
15,374 |
|
|
|
15,366 |
|
|
|
25,271 |
|
|
|
25,258 |
|
Accrued expenses and other liabilities |
|
45,838 |
|
|
|
52,314 |
|
|
|
49,362 |
|
|
|
46,445 |
|
|
|
49,571 |
|
Total liabilities |
|
2,254,277 |
|
|
|
2,030,511 |
|
|
|
2,079,030 |
|
|
|
2,056,524 |
|
|
|
2,077,145 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders’ equity |
|
|
|
|
|
|
|
|
|
||||||||||
Common stock, no par value |
|
118,148 |
|
|
|
119,588 |
|
|
|
120,451 |
|
|
|
120,398 |
|
|
|
121,338 |
|
Retained earnings |
|
92,400 |
|
|
|
85,992 |
|
|
|
80,543 |
|
|
|
75,418 |
|
|
|
70,839 |
|
Accumulated other comprehensive loss |
|
(8,561 |
) |
|
|
(9,403 |
) |
|
|
(10,199 |
) |
|
|
(7,873 |
) |
|
|
(15,575 |
) |
Total shareholders’ equity |
|
201,987 |
|
|
|
196,177 |
|
|
|
190,795 |
|
|
|
187,943 |
|
|
|
176,602 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total liabilities and shareholders’ equity |
$ |
2,456,264 |
|
|
$ |
2,226,688 |
|
|
$ |
2,269,825 |
|
|
$ |
2,244,467 |
|
|
$ |
2,253,747 |
|
BANKWELL FINANCIAL GROUP, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited) (Dollars in thousands, except share data) |
||||||||||||||||||||||||
|
For the Quarter Ended |
|
For the Year Ended |
|||||||||||||||||||||
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|||||||||||
Interest and dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest and fees on loans |
$ |
21,081 |
|
|
$ |
19,795 |
|
$ |
19,266 |
|
|
$ |
17,900 |
|
|
$ |
18,194 |
|
$ |
78,042 |
|
|
$ |
73,665 |
Interest and dividends on securities |
|
722 |
|
|
|
731 |
|
|
736 |
|
|
|
769 |
|
|
|
835 |
|
|
2,958 |
|
|
|
3,237 |
Interest on cash and cash equivalents |
|
90 |
|
|
|
88 |
|
|
90 |
|
|
|
108 |
|
|
|
117 |
|
|
376 |
|
|
|
585 |
Total interest and dividend income |
|
21,893 |
|
|
|
20,614 |
|
|
20,092 |
|
|
|
18,777 |
|
|
|
19,146 |
|
|
81,376 |
|
|
|
77,487 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest expense on deposits |
|
2,198 |
|
|
|
2,387 |
|
|
2,744 |
|
|
|
3,114 |
|
|
|
3,557 |
|
|
10,443 |
|
|
|
18,180 |
Interest expense on borrowings |
|
767 |
|
|
|
503 |
|
|
769 |
|
|
|
1,008 |
|
|
|
1,285 |
|
|
3,047 |
|
|
|
4,472 |
Total interest expense |
|
2,965 |
|
|
|
2,890 |
|
|
3,513 |
|
|
|
4,122 |
|
|
|
4,842 |
|
|
13,490 |
|
|
|
22,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net interest income |
|
18,928 |
|
|
|
17,724 |
|
|
16,579 |
|
|
|
14,655 |
|
|
|
14,304 |
|
|
67,886 |
|
|
|
54,835 |
Provision (credit) for loan losses |
|
125 |
|
|
|
134 |
|
|
(20 |
) |
|
|
(296 |
) |
|
|
709 |
|
|
(57 |
) |
|
|
7,605 |
Net interest income after provision (credit) for loan losses |
|
18,803 |
|
|
|
17,590 |
|
|
16,599 |
|
|
|
14,951 |
|
|
|
13,595 |
|
|
67,943 |
|
|
|
47,230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gains and fees from sales of loans |
|
441 |
|
|
|
924 |
|
|
814 |
|
|
|
513 |
|
|
|
16 |
|
|
2,692 |
|
|
|
43 |
Bank owned life insurance |
|
270 |
|
|
|
271 |
|
|
251 |
|
|
|
231 |
|
|
|
241 |
|
|
1,023 |
|
|
|
967 |
Service charges and fees |
|
257 |
|
|
|
199 |
|
|
217 |
|
|
|
199 |
|
|
|
210 |
|
|
872 |
|
|
|
788 |
Gain on sale of other real estate owned, net |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
19 |
Other |
|
(143 |
) |
|
|
43 |
|
|
158 |
|
|
|
1,013 |
|
|
|
154 |
|
|
1,070 |
|
|
|
1,067 |
Total noninterest income |
|
825 |
|
|
|
1,437 |
|
|
1,440 |
|
|
|
1,956 |
|
|
|
621 |
|
|
5,657 |
|
|
|
2,884 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Salaries and employee benefits |
|
4,806 |
|
|
|
4,782 |
|
|
3,960 |
|
|
|
4,769 |
|
|
|
5,453 |
|
|
18,317 |
|
|
|
21,355 |
Occupancy and equipment |
|
2,411 |
|
|
|
2,615 |
|
|
3,250 |
|
|
|
2,406 |
|
|
|
4,516 |
|
|
10,682 |
|
|
|
10,926 |
Professional services |
|
628 |
|
|
|
498 |
|
|
547 |
|
|
|
587 |
|
|
|
591 |
|
|
2,260 |
|
|
|
2,110 |
Data processing |
|
432 |
|
|
|
632 |
|
|
833 |
|
|
|
512 |
|
|
|
1,658 |
|
|
2,409 |
|
|
|
3,216 |
Director fees |
|
335 |
|
|
|
324 |
|
|
327 |
|
|
|
317 |
|
|
|
331 |
|
|
1,303 |
|
|
|
1,214 |
FDIC insurance |
|
231 |
|
|
|
298 |
|
|
300 |
|
|
|
403 |
|
|
|
262 |
|
|
1,232 |
|
|
|
791 |
Marketing |
|
87 |
|
|
|
186 |
|
|
140 |
|
|
|
(9 |
) |
|
|
118 |
|
|
404 |
|
|
|
630 |
Other |
|
749 |
|
|
|
1,035 |
|
|
695 |
|
|
|
653 |
|
|
|
774 |
|
|
3,132 |
|
|
|
2,571 |
Total noninterest expense |
|
9,679 |
|
|
|
10,370 |
|
|
10,052 |
|
|
|
9,638 |
|
|
|
13,703 |
|
|
39,739 |
|
|
|
42,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income before income tax expense |
|
9,949 |
|
|
|
8,657 |
|
|
7,987 |
|
|
|
7,269 |
|
|
|
513 |
|
|
33,861 |
|
|
|
7,301 |
Income tax expense |
|
2,135 |
|
|
|
1,802 |
|
|
1,759 |
|
|
|
1,579 |
|
|
|
177 |
|
|
7,275 |
|
|
|
1,397 |
Net income |
$ |
7,814 |
|
|
$ |
6,855 |
|
$ |
6,228 |
|
|
$ |
5,690 |
|
|
$ |
336 |
|
$ |
26,586 |
|
|
$ |
5,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Earnings Per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Basic |
$ |
1.00 |
|
|
$ |
0.88 |
|
$ |
0.79 |
|
|
$ |
0.72 |
|
|
$ |
0.04 |
|
$ |
3.38 |
|
|
$ |
0.75 |
Diluted |
$ |
0.99 |
|
|
$ |
0.87 |
|
$ |
0.79 |
|
|
$ |
0.71 |
|
|
$ |
0.04 |
|
$ |
3.36 |
|
|
$ |
0.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted Average Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Basic |
|
7,660,307 |
|
|
|
7,677,822 |
|
|
7,722,481 |
|
|
|
7,758,540 |
|
|
|
7,726,926 |
|
|
7,706,407 |
|
|
|
7,728,328 |
Diluted |
|
7,726,420 |
|
|
|
7,738,758 |
|
|
7,768,026 |
|
|
|
7,800,777 |
|
|
|
7,728,206 |
|
|
7,761,811 |
|
|
|
7,748,453 |
Dividends per common share |
$ |
0.18 |
|
|
$ |
0.18 |
|
$ |
0.14 |
|
|
$ |
0.14 |
|
|
$ |
0.14 |
|
$ |
0.64 |
|
|
$ |
0.56 |
BANKWELL FINANCIAL GROUP, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) |
||||||||||||||||||||
|
For the Quarter Ended |
|
For the Year Ended |
|||||||||||||||||
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|||||||
Performance ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Return on average assets(1) |
1.32 |
% |
|
1.22 |
% |
|
1.11 |
% |
|
1.02 |
% |
|
0.06 |
% |
|
1.17 |
% |
|
0.28 |
% |
Return on average stockholders' equity(1) |
15.44 |
% |
|
14.09 |
% |
|
13.06 |
% |
|
12.67 |
% |
|
0.75 |
% |
|
13.86 |
% |
|
3.35 |
% |
Return on average tangible common equity(1) |
15.65 |
% |
|
14.29 |
% |
|
13.25 |
% |
|
12.86 |
% |
|
0.76 |
% |
|
14.05 |
% |
|
3.40 |
% |
Net interest margin |
3.43 |
% |
|
3.39 |
% |
|
3.12 |
% |
|
2.74 |
% |
|
2.66 |
% |
|
3.17 |
% |
|
2.77 |
% |
Efficiency ratio(2) |
48.8 |
% |
|
54.1 |
% |
|
55.7 |
% |
|
58.0 |
% |
|
91.2 |
% |
|
53.9 |
% |
|
73.9 |
% |
Net loan charge-offs as a % of average loans |
— |
% |
|
— |
% |
|
0.23 |
% |
|
0.01 |
% |
|
— |
% |
|
0.23 |
% |
|
0.01 |
% |
Dividend payout ratio(3) |
18.18 |
% |
|
20.69 |
% |
|
17.72 |
% |
|
19.72 |
% |
|
350.00 |
% |
|
19.05 |
% |
|
74.67 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(1) |
2020 performance ratios were negatively impacted by COVID-19 pandemic related loan loss reserves and $3.9 million in one-time charges related to office consolidation, contract termination and employee severance costs recognized in the fourth quarter of 2020. |
|
(2) |
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. |
|
(3) |
The dividend payout ratio is calculated by dividing dividends per share by earnings per share. |
|
As of |
||||||||||||||||||
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
||||||||||
Capital ratios: |
|
|
|
|
|
|
|
|
|
||||||||||
Total Common Equity Tier 1 Capital to Risk-Weighted Assets(1) |
|
11.18 |
% |
|
|
10.59 |
% |
|
|
10.95 |
% |
|
|
11.02 |
% |
|
|
11.06 |
% |
Total Capital to Risk-Weighted Assets(1) |
|
12.00 |
% |
|
|
11.44 |
% |
|
|
11.84 |
% |
|
|
12.17 |
% |
|
|
12.28 |
% |
Tier I Capital to Risk-Weighted Assets(1) |
|
11.18 |
% |
|
|
10.59 |
% |
|
|
10.95 |
% |
|
|
11.02 |
% |
|
|
11.06 |
% |
Tier I Capital to Average Assets(1) |
|
9.94 |
% |
|
|
9.61 |
% |
|
|
9.19 |
% |
|
|
8.82 |
% |
|
|
8.44 |
% |
Tangible common equity to tangible assets |
|
8.13 |
% |
|
|
8.70 |
% |
|
|
8.30 |
% |
|
|
8.27 |
% |
|
|
7.73 |
% |
Tangible book value per common share(2) |
$ |
26.19 |
|
|
$ |
25.25 |
|
|
$ |
24.40 |
|
|
$ |
23.99 |
|
|
$ |
22.43 |
|
(1) |
Represents Bank ratios. Current period capital ratios are preliminary subject to finalization of the FDIC Call Report. |
|
(2) |
Excludes unvested restricted shares of 190,359, 178,797, 184,548, 186,485, and 163,369 as of December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively. |
BANKWELL FINANCIAL GROUP, INC. ASSET QUALITY (unaudited) (Dollars in thousands) |
|||||||||||||||||||
|
For the Quarter Ended |
||||||||||||||||||
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
||||||||||
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of period |
$ |
16,803 |
|
|
$ |
16,672 |
|
|
$ |
20,545 |
|
|
$ |
21,009 |
|
|
$ |
20,372 |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate |
|
— |
|
|
|
— |
|
|
|
(3,814 |
) |
|
|
(163 |
) |
|
|
— |
|
Commercial business |
|
(26 |
) |
|
|
— |
|
|
|
(51 |
) |
|
|
— |
|
|
|
(75 |
) |
Consumer |
|
(5 |
) |
|
|
(15 |
) |
|
|
(4 |
) |
|
|
(14 |
) |
|
|
(11 |
) |
Total charge-offs |
|
(31 |
) |
|
|
(15 |
) |
|
|
(3,869 |
) |
|
|
(177 |
) |
|
|
(86 |
) |
Recoveries: |
|
|
|
|
|
|
|
|
|
||||||||||
Commercial business |
|
2 |
|
|
|
11 |
|
|
|
16 |
|
|
|
— |
|
|
|
14 |
|
Consumer |
|
3 |
|
|
|
1 |
|
|
|
— |
|
|
|
9 |
|
|
|
— |
|
Total recoveries |
|
5 |
|
|
|
12 |
|
|
|
16 |
|
|
|
9 |
|
|
|
14 |
|
Net loan charge-offs |
|
(26 |
) |
|
|
(3 |
) |
|
|
(3,853 |
) |
|
|
(168 |
) |
|
|
(72 |
) |
Provision (credit) for loan losses |
|
125 |
|
|
|
134 |
|
|
|
(20 |
) |
|
|
(296 |
) |
|
|
709 |
|
Balance at end of period |
$ |
16,902 |
|
|
$ |
16,803 |
|
|
$ |
16,672 |
|
|
$ |
20,545 |
|
|
$ |
21,009 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
As of |
||||||||||||||||||
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
||||||||||
Asset quality: |
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans |
|
|
|
|
|
|
|
|
|
||||||||||
Residential real estate |
$ |
2,380 |
|
|
$ |
1,849 |
|
|
$ |
1,160 |
|
|
$ |
1,289 |
|
|
$ |
1,492 |
|
Commercial real estate |
|
3,482 |
|
|
|
16,314 |
|
|
|
15,392 |
|
|
|
19,277 |
|
|
|
21,093 |
|
Commercial business |
|
1,728 |
|
|
|
1,754 |
|
|
|
1,780 |
|
|
|
1,803 |
|
|
|
1,834 |
|
Construction |
|
8,997 |
|
|
|
8,997 |
|
|
|
8,997 |
|
|
|
8,997 |
|
|
|
8,997 |
|
Total nonaccrual loans |
|
16,587 |
|
|
|
28,914 |
|
|
|
27,329 |
|
|
|
31,366 |
|
|
|
33,416 |
|
Other real estate owned |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonperforming assets |
$ |
16,587 |
|
|
$ |
28,914 |
|
|
$ |
27,329 |
|
|
$ |
31,366 |
|
|
$ |
33,416 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming loans as a % of total loans |
|
0.88 |
% |
|
|
1.58 |
% |
|
|
1.57 |
% |
|
|
1.87 |
% |
|
|
2.06 |
% |
Nonperforming assets as a % of total assets |
|
0.68 |
% |
|
|
1.30 |
% |
|
|
1.20 |
% |
|
|
1.40 |
% |
|
|
1.48 |
% |
Allowance for loan losses as a % of total loans |
|
0.89 |
% |
|
|
0.92 |
% |
|
|
0.96 |
% |
|
|
1.23 |
% |
|
|
1.29 |
% |
Allowance for loan losses as a % of nonperforming loans |
|
101.90 |
% |
|
|
58.11 |
% |
|
|
61.00 |
% |
|
|
65.50 |
% |
|
|
62.87 |
% |
Total nonaccrual loans declined $16.8 million to $16.6 million as of December 31, 2021 when compared to December 31, 2020, primarily a result of $11.0 million of previously reported nonaccrual loans becoming performing loans during the fourth quarter of 2021. Nonperforming assets as a percentage of total assets was 0.68% at December 31, 2021, down from 1.48% at December 31, 2020. The allowance for loan losses at December 31, 2021 was $16.9 million, representing 0.89% of total loans.
BANKWELL FINANCIAL GROUP, INC. LOAN & DEPOSIT PORTFOLIO (unaudited) (Dollars in thousands) |
||||||||||||||
Period End Loan Composition |
December 31,
|
|
September 30,
|
|
December 31,
|
|
Current QTD
|
|
YTD
|
|||||
Residential Real Estate |
$ |
79,987 |
|
$ |
90,110 |
|
$ |
113,557 |
|
(11.2 |
) % |
|
(29.6 |
) % |
Commercial Real Estate(1) |
|
1,356,709 |
|
|
1,337,896 |
|
|
1,148,383 |
|
1.4 |
|
|
18.1 |
|
Construction |
|
98,341 |
|
|
94,665 |
|
|
87,007 |
|
3.9 |
|
|
13.0 |
|
Total Real Estate Loans |
|
1,535,037 |
|
|
1,522,671 |
|
|
1,348,947 |
|
0.8 |
|
|
13.8 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial Business(2) |
|
350,975 |
|
|
292,825 |
|
|
276,601 |
|
19.9 |
|
|
26.9 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Consumer |
|
8,869 |
|
|
9,050 |
|
|
79 |
|
(2.0 |
) |
|
N/M(3) |
|
Total Loans |
$ |
1,894,881 |
|
$ |
1,824,546 |
|
$ |
1,625,627 |
|
3.9 |
% |
|
16.6 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
(1) |
Includes owner occupied commercial real estate. |
|
(2) |
Includes $0.2 million, $1.6 million, and $34.8 million of PPP loans at December 31, 2021, September 30, 2021 and December 31, 2020, respectively. |
|
(3) |
Metric not meaningful. |
Gross loans totaled $1.9 billion at December 31, 2021, an increase of $269.3 million compared to December 31, 2020. Excluding PPP loans, gross loans increased by $303.9 million, or 19.1%, at December 31, 2021 when compared to December 31, 2020.
Period End Deposit Composition |
December 31,
|
|
September 30,
|
|
December 31,
|
|
Current QTD
|
|
YTD
|
|||||
Noninterest bearing demand |
$ |
398,956 |
|
$ |
338,705 |
|
$ |
270,235 |
|
17.8 |
% |
|
47.6 |
% |
NOW |
|
119,479 |
|
|
103,180 |
|
|
101,737 |
|
15.8 |
|
|
17.4 |
|
Money Market |
|
954,674 |
|
|
835,210 |
|
|
669,364 |
|
14.3 |
|
|
42.6 |
|
Savings |
|
193,631 |
|
|
188,581 |
|
|
158,750 |
|
2.7 |
|
|
22.0 |
|
Time |
|
457,258 |
|
|
417,147 |
|
|
627,230 |
|
9.6 |
|
|
(27.1 |
) |
Total Deposits |
$ |
2,123,998 |
|
$ |
1,882,823 |
|
$ |
1,827,316 |
|
12.8 |
% |
|
16.2 |
% |
Total deposits were $2.1 billion at December 31, 2021, compared to $1.8 billion at December 31, 2020, an increase of $296.7 million, or 16.2%. Noninterest bearing deposits grew by $128.7 million, or 47.6%, as of December 31, 2021, compared to December 31, 2020.
BANKWELL FINANCIAL GROUP, INC. NONINTEREST INCOME (unaudited) (Dollars in thousands) |
|||||||||||||||
|
For the Quarter Ended |
|
|
|
|
||||||||||
Noninterest income |
December 31,
|
|
September 30,
|
|
December 31,
|
|
Dec 21 vs. Sep 21
|
|
Dec 21 vs. Dec 20
|
||||||
Gains and fees from sales of loans |
$ |
441 |
|
|
$ |
924 |
|
$ |
16 |
|
(52.3 |
) % |
|
2,656.3 |
% |
Bank owned life insurance |
|
270 |
|
|
|
271 |
|
|
241 |
|
(0.4 |
) |
|
12.0 |
|
Service charges and fees |
|
257 |
|
|
|
199 |
|
|
210 |
|
29.1 |
|
|
22.4 |
|
Other |
|
(143 |
) |
|
|
43 |
|
|
154 |
|
(432.6 |
) |
|
(192.9 |
) |
Total noninterest income |
$ |
825 |
|
|
$ |
1,437 |
|
$ |
621 |
|
(42.6 |
) % |
|
32.9 |
% |
|
For the Year Ended |
|
|
|||||
Noninterest income |
December 31,
|
|
December 31,
|
|
% Change |
|||
Gains and fees from sales of loans |
$ |
2,692 |
|
$ |
43 |
|
6,160.5 |
% |
Bank owned life insurance |
|
1,023 |
|
|
967 |
|
5.8 |
|
Service charges and fees |
|
872 |
|
|
788 |
|
10.7 |
|
Gain on sale of other real estate owned, net |
|
— |
|
|
19 |
|
(100.0 |
) |
Other |
|
1,070 |
|
|
1,067 |
|
0.3 |
|
Total noninterest income |
$ |
5,657 |
|
$ |
2,884 |
|
96.2 |
% |
Noninterest income increased by $0.2 million to $0.8 million for the quarter ended December 31, 2021 compared to the quarter ended December 31, 2020. Noninterest income increased by $2.8 million to $5.7 million for the year ended December 31, 2021 compared to the year ended December 31, 2020.
The increase in noninterest income was driven by resumed loan sales, totaling $0.4 million and $2.7 million for the quarter and year ended December 31, 2021, respectively. The increase for the year was also impacted by a one-time federal payroll tax credit for COVID-19 of $0.9 million, partially offset by a $0.2 million loss on the sale of the Company's former headquarters building. In addition, in 2020 the Company recognized a $0.4 million benefit of non-recurring interest rate swap fees.
BANKWELL FINANCIAL GROUP, INC. NONINTEREST EXPENSE (unaudited) (Dollars in thousands) |
||||||||||||||
|
For the Quarter Ended |
|
|
|
|
|||||||||
Noninterest expense |
December 31,
|
|
September 30,
|
|
December 31,
|
|
Dec 21 vs. Sep 21
|
|
Dec 21 vs. Dec 20
|
|||||
Salaries and employee benefits |
$ |
4,806 |
|
$ |
4,782 |
|
$ |
5,453 |
|
0.5 |
% |
|
(11.9 |
) % |
Occupancy and equipment |
|
2,411 |
|
|
2,615 |
|
|
4,516 |
|
(7.8 |
) |
|
(46.6 |
) |
Professional services |
|
628 |
|
|
498 |
|
|
591 |
|
26.1 |
|
|
6.3 |
|
Data processing |
|
432 |
|
|
632 |
|
|
1,658 |
|
(31.6 |
) |
|
(73.9 |
) |
Director fees |
|
335 |
|
|
324 |
|
|
331 |
|
3.4 |
|
|
1.2 |
|
FDIC insurance |
|
231 |
|
|
298 |
|
|
262 |
|
(22.5 |
) |
|
(11.8 |
) |
Marketing |
|
87 |
|
|
186 |
|
|
118 |
|
(53.2 |
) |
|
(26.3 |
) |
Other |
|
749 |
|
|
1,035 |
|
|
774 |
|
(27.6 |
) |
|
(3.2 |
) |
Total noninterest expense |
$ |
9,679 |
|
$ |
10,370 |
|
$ |
13,703 |
|
(6.7 |
) % |
|
(29.4 |
) % |
|
||||||||||||||
|
For the Year Ended |
|
|
|||||
Noninterest expense |
December 31, 2021 |
|
December 31, 2020 |
|
% Change |
|||
Salaries and employee benefits |
$ |
18,317 |
|
$ |
21,355 |
|
(14.2 |
) % |
Occupancy and equipment |
|
10,682 |
|
|
10,926 |
|
(2.2 |
) |
Data processing |
|
2,409 |
|
|
3,216 |
|
(25.1 |
) |
Professional services |
|
2,260 |
|
|
2,110 |
|
7.1 |
|
Director fees |
|
1,303 |
|
|
1,214 |
|
7.3 |
|
FDIC insurance |
|
1,232 |
|
|
791 |
|
55.8 |
|
Marketing |
|
404 |
|
|
630 |
|
(35.9 |
) |
Other |
|
3,132 |
|
|
2,571 |
|
21.8 |
|
Total noninterest expense |
$ |
39,739 |
|
$ |
42,813 |
|
(7.2 |
) % |
Noninterest expense decreased by $4.0 million to $9.7 million for the quarter ended December 31, 2021 compared to the quarter ended December 31, 2020. The decrease in noninterest expense was primarily driven by a decrease in salaries and employee benefits expense, occupancy and equipment expense and data processing expense.
Noninterest expense decreased by $3.1 million to $39.7 million for the year ended December 31, 2021 compared to the year ended December 31, 2020. The decrease in noninterest expense was primarily driven by a decrease in salaries and employee benefits expense and data processing expense.
Salaries and employee benefits expense totaled $4.8 million for the quarter ended December 31, 2021, a decrease of $0.6 million when compared to the same period in 2020. Salaries and employee benefits expense totaled $18.3 million for the year ended December 31, 2021, a decrease of $3.0 million when compared to the same period in 2020. The decrease in salaries and employee benefits expense was primarily driven by a decrease in full time equivalent employees as a direct result of the Voluntary Early Retirement Incentive Plan offered to eligible employees and other employee actions taken during the fourth quarter of 2020. Average full time equivalent employees totaled 126 for the year ended December 31, 2021 compared to 146 for the same period in 2020. In addition, salaries and employee benefits expense also benefited by one-time deferrals of $0.9 million for the year ended December 31, 2021 related to costs associated with the implementation of a new online banking and other systems. Salaries and employee benefits were also favorably impacted as higher loan originations enabled the Bank to defer a greater amount of expenses.
Occupancy and equipment expense totaled $2.4 million for the quarter ended December 31, 2021, a decrease of $2.1 million when compared to the same period in 2020. The decrease in occupancy and equipment expense was primarily due to costs associated with office and branch consolidation, recognized during the fourth quarter of 2020.
Data processing expense totaled $0.4 million for the quarter ended December 31, 2021, a decrease of $1.2 million when compared to the same period in 2020. Data processing expense totaled $2.4 million for the year ended December 31, 2021, a decrease of $0.8 million when compared to the same period in 2020. The decrease in data processing expense was primarily driven by a $1.1 million one-time charge related to early termination fees payable to a legacy technology vendor recognized during the fourth quarter of 2020.
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 Assets |
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
||||||||||
Total Equity |
$ |
201,987 |
|
|
$ |
196,177 |
|
|
$ |
190,795 |
|
|
$ |
187,943 |
|
|
$ |
176,602 |
|
Less: |
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill |
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
Other intangibles |
|
— |
|
|
|
48 |
|
|
|
58 |
|
|
|
67 |
|
|
|
76 |
|
Tangible Common Equity |
$ |
199,398 |
|
|
$ |
193,540 |
|
|
$ |
188,148 |
|
|
$ |
185,287 |
|
|
$ |
173,937 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Assets |
$ |
2,456,264 |
|
|
$ |
2,226,688 |
|
|
$ |
2,269,825 |
|
|
$ |
2,244,467 |
|
|
$ |
2,253,747 |
|
Less: |
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill |
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
Other intangibles |
|
— |
|
|
|
48 |
|
|
|
58 |
|
|
|
67 |
|
|
|
76 |
|
Tangible Assets |
$ |
2,453,675 |
|
|
$ |
2,224,051 |
|
|
$ |
2,267,178 |
|
|
$ |
2,241,811 |
|
|
$ |
2,251,082 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible Common Equity to Tangible Assets |
|
8.13 |
% |
|
|
8.70 |
% |
|
|
8.30 |
% |
|
|
8.27 |
% |
|
|
7.73 |
% |
|
As of |
|||||||||||||
Computation of Tangible Book Value per Common Share |
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|||||
Total shareholders' equity |
$ |
201,987 |
|
$ |
196,177 |
|
$ |
190,795 |
|
$ |
187,943 |
|
$ |
176,602 |
Less: |
|
|
|
|
|
|
|
|
|
|||||
Preferred stock |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Common shareholders' equity |
$ |
201,987 |
|
$ |
196,177 |
|
$ |
190,795 |
|
$ |
187,943 |
|
$ |
176,602 |
Less: |
|
|
|
|
|
|
|
|
|
|||||
Goodwill |
|
2,589 |
|
|
2,589 |
|
|
2,589 |
|
|
2,589 |
|
|
2,589 |
Other intangibles |
|
— |
|
|
48 |
|
|
58 |
|
|
67 |
|
|
76 |
Tangible common shareholders' equity |
$ |
199,398 |
|
$ |
193,540 |
|
$ |
188,148 |
|
$ |
185,287 |
|
$ |
173,937 |
Common shares |
|
7,803,166 |
|
|
7,842,824 |
|
|
7,895,101 |
|
|
7,908,630 |
|
|
7,919,278 |
Less: |
|
|
|
|
|
|
|
|
|
|||||
Shares of unvested restricted stock |
|
190,359 |
|
|
178,797 |
|
|
184,548 |
|
|
186,485 |
|
|
163,369 |
Common shares less unvested restricted stock |
|
7,612,807 |
|
|
7,664,027 |
|
|
7,710,553 |
|
|
7,722,145 |
|
|
7,755,909 |
Book value per share |
$ |
26.53 |
|
$ |
25.60 |
|
$ |
24.74 |
|
$ |
24.34 |
|
$ |
22.77 |
Less: |
|
|
|
|
|
|
|
|
|
|||||
Effects of intangible assets |
$ |
0.34 |
|
$ |
0.34 |
|
$ |
0.34 |
|
$ |
0.34 |
|
$ |
0.34 |
|
|
|
|
|
|
|
|
|
|
|||||
Tangible Book Value per Common Share |
$ |
26.19 |
|
$ |
25.25 |
|
$ |
24.40 |
|
$ |
23.99 |
|
$ |
22.43 |
BANKWELL FINANCIAL GROUP, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited) - Continued (Dollars in thousands) |
|||||||||||||||||||||||||||
|
For the Quarter Ended |
|
For the Year Ended |
||||||||||||||||||||||||
Computation of Efficiency Ratio |
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||||||||
Noninterest expense |
$ |
9,679 |
|
|
$ |
10,370 |
|
|
$ |
10,052 |
|
|
$ |
9,638 |
|
|
$ |
13,703 |
|
|
$ |
39,739 |
|
|
$ |
42,813 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Amortization of intangible assets |
|
48 |
|
|
|
9 |
|
|
|
9 |
|
|
|
9 |
|
|
|
84 |
|
|
|
76 |
|
|
|
138 |
|
Other real estate owned expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
Adjusted noninterest expense |
$ |
9,631 |
|
|
$ |
10,361 |
|
|
$ |
10,043 |
|
|
$ |
9,629 |
|
|
$ |
13,619 |
|
|
$ |
39,663 |
|
|
$ |
42,669 |
|
Net interest income |
$ |
18,928 |
|
|
$ |
17,724 |
|
|
$ |
16,579 |
|
|
$ |
14,655 |
|
|
$ |
14,304 |
|
|
$ |
67,886 |
|
|
$ |
54,835 |
|
Noninterest income |
|
825 |
|
|
|
1,437 |
|
|
|
1,440 |
|
|
|
1,956 |
|
|
|
621 |
|
|
|
5,657 |
|
|
|
2,884 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net gain on sale of available for sale securities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gain on sale of other real estate owned, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19 |
|
Operating revenue |
$ |
19,753 |
|
|
$ |
19,161 |
|
|
$ |
18,019 |
|
|
$ |
16,611 |
|
|
$ |
14,925 |
|
|
$ |
73,543 |
|
|
$ |
57,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Efficiency ratio |
|
48.8 |
% |
|
|
54.1 |
% |
|
|
55.7 |
% |
|
|
58.0 |
% |
|
|
91.2 |
% |
|
|
53.9 |
% |
|
|
73.9 |
% |
|
For the Quarter Ended |
|
For the Year Ended |
||||||||||||||||||||||||
Computation of Return on Average Tangible Common Equity |
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||||||||
Net Income Attributable to Common Shareholders |
$ |
7,814 |
|
|
$ |
6,855 |
|
|
$ |
6,228 |
|
|
$ |
5,690 |
|
|
$ |
336 |
|
|
$ |
26,586 |
|
|
$ |
5,904 |
|
Total average shareholders' equity |
$ |
200,752 |
|
|
$ |
192,993 |
|
|
$ |
191,224 |
|
|
$ |
182,058 |
|
|
$ |
178,439 |
|
|
$ |
191,808 |
|
|
$ |
176,489 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average Goodwill |
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
Average Other intangibles |
|
45 |
|
|
|
54 |
|
|
|
64 |
|
|
|
73 |
|
|
|
153 |
|
|
|
59 |
|
|
|
180 |
|
Average tangible common equity |
$ |
198,118 |
|
|
$ |
190,350 |
|
|
$ |
188,571 |
|
|
$ |
179,396 |
|
|
$ |
175,697 |
|
|
$ |
189,160 |
|
|
$ |
173,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Annualized Return on Average Tangible Common Equity |
|
15.65 |
% |
|
|
14.29 |
% |
|
|
13.25 |
% |
|
|
12.86 |
% |
|
|
0.76 |
% |
|
|
14.05 |
% |
|
|
3.40 |
% |
BANKWELL FINANCIAL GROUP, INC. NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - QTD (unaudited) (Dollars in thousands) |
|||||||||||||||||
|
For the Quarter Ended |
||||||||||||||||
|
December 31, 2021 |
|
December 31, 2020 |
||||||||||||||
|
Average
|
|
Interest |
|
Yield/
|
|
Average
|
|
Interest |
|
Yield/
|
||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and Fed funds sold |
$ |
233,196 |
|
$ |
90 |
|
0.15 |
% |
|
$ |
424,327 |
|
$ |
117 |
|
0.11 |
% |
Securities(1) |
|
104,797 |
|
|
756 |
|
2.89 |
|
|
|
105,422 |
|
|
814 |
|
3.09 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
1,337,147 |
|
|
15,104 |
|
4.42 |
|
|
|
1,096,912 |
|
|
12,753 |
|
4.55 |
|
Residential real estate |
|
83,763 |
|
|
694 |
|
3.31 |
|
|
|
115,104 |
|
|
1,009 |
|
3.51 |
|
Construction |
|
95,611 |
|
|
972 |
|
3.98 |
|
|
|
93,909 |
|
|
910 |
|
3.79 |
|
Commercial business |
|
347,394 |
|
|
4,222 |
|
4.75 |
|
|
|
311,995 |
|
|
3,520 |
|
4.41 |
|
Consumer |
|
8,904 |
|
|
89 |
|
3.97 |
|
|
|
96 |
|
|
2 |
|
7.41 |
|
Total loans |
|
1,872,819 |
|
|
21,081 |
|
4.40 |
|
|
|
1,618,016 |
|
|
18,194 |
|
4.40 |
|
Federal Home Loan Bank stock |
|
2,814 |
|
|
16 |
|
2.28 |
|
|
|
7,859 |
|
|
74 |
|
3.75 |
|
Total earning assets |
|
2,213,626 |
|
$ |
21,943 |
|
3.88 |
% |
|
|
2,155,624 |
|
$ |
19,199 |
|
3.48 |
% |
Other assets |
|
130,512 |
|
|
|
|
|
|
123,435 |
|
|
|
|
||||
Total assets |
$ |
2,344,138 |
|
|
|
|
|
$ |
2,279,059 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Liabilities and shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
NOW |
$ |
114,158 |
|
$ |
51 |
|
0.18 |
% |
|
$ |
93,126 |
|
$ |
42 |
|
0.18 |
% |
Money market |
|
874,352 |
|
|
1,097 |
|
0.50 |
|
|
|
644,685 |
|
|
858 |
|
0.53 |
|
Savings |
|
190,118 |
|
|
100 |
|
0.21 |
|
|
|
168,307 |
|
|
164 |
|
0.39 |
|
Time |
|
438,627 |
|
|
950 |
|
0.86 |
|
|
|
686,827 |
|
|
2,493 |
|
1.44 |
|
Total interest bearing deposits |
|
1,617,255 |
|
|
2,198 |
|
0.54 |
|
|
|
1,592,945 |
|
|
3,557 |
|
0.89 |
|
Borrowed Money |
|
89,726 |
|
|
767 |
|
3.35 |
|
|
|
200,250 |
|
|
1,285 |
|
2.51 |
|
Total interest bearing liabilities |
|
1,706,981 |
|
$ |
2,965 |
|
0.69 |
% |
|
|
1,793,195 |
|
$ |
4,842 |
|
1.07 |
% |
Noninterest bearing deposits |
|
383,557 |
|
|
|
|
|
|
255,843 |
|
|
|
|
||||
Other liabilities |
|
52,848 |
|
|
|
|
|
|
51,582 |
|
|
|
|
||||
Total liabilities |
|
2,143,386 |
|
|
|
|
|
|
2,100,620 |
|
|
|
|
||||
Shareholders' equity |
|
200,752 |
|
|
|
|
|
|
178,439 |
|
|
|
|
||||
Total liabilities and shareholders' equity |
$ |
2,344,138 |
|
|
|
|
|
$ |
2,279,059 |
|
|
|
|
||||
Net interest income(2) |
|
|
$ |
18,978 |
|
|
|
|
|
$ |
14,357 |
|
|
||||
Interest rate spread |
|
|
|
|
3.19 |
% |
|
|
|
|
|
2.41 |
% |
||||
Net interest margin(3) |
|
|
|
|
3.43 |
% |
|
|
|
|
|
2.66 |
% |
||||
(1) |
Average balances and yields for securities are based on amortized cost. |
|
(2) |
The adjustment for securities and loans taxable equivalency amounted to $50 thousand and $53 thousand for the quarters ended December 31, 2021 and 2020, 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. |
BANKWELL FINANCIAL GROUP, INC. NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - YTD (unaudited) (Dollars in thousands) |
|||||||||||||||||
|
For the Year Ended |
||||||||||||||||
|
December 31, 2021 |
|
December 31, 2020 |
||||||||||||||
|
Average
|
|
Interest |
|
Yield/
|
|
Average
|
|
Interest |
|
Yield/
|
||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and Fed funds sold |
$ |
294,471 |
|
$ |
376 |
|
0.13 |
% |
|
$ |
261,689 |
|
$ |
585 |
|
0.22 |
% |
Securities(1) |
|
103,592 |
|
|
3,071 |
|
2.96 |
|
|
|
98,938 |
|
|
3,103 |
|
3.14 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
1,225,770 |
|
|
55,995 |
|
4.51 |
|
|
|
1,095,367 |
|
|
51,218 |
|
4.60 |
|
Residential real estate |
|
99,101 |
|
|
3,363 |
|
3.39 |
|
|
|
129,585 |
|
|
4,645 |
|
3.58 |
|
Construction |
|
97,163 |
|
|
3,780 |
|
3.84 |
|
|
|
97,230 |
|
|
4,262 |
|
4.31 |
|
Commercial business |
|
313,422 |
|
|
14,589 |
|
4.59 |
|
|
|
295,662 |
|
|
13,530 |
|
4.50 |
|
Consumer |
|
7,929 |
|
|
315 |
|
3.97 |
|
|
|
121 |
|
|
10 |
|
8.00 |
|
Total loans |
|
1,743,385 |
|
|
78,042 |
|
4.42 |
|
|
|
1,617,965 |
|
|
73,665 |
|
4.48 |
|
Federal Home Loan Bank stock |
|
4,156 |
|
|
88 |
|
2.12 |
|
|
|
7,625 |
|
|
346 |
|
4.53 |
|
Total earning assets |
|
2,145,604 |
|
$ |
81,577 |
|
3.75 |
% |
|
|
1,986,217 |
|
$ |
77,699 |
|
3.85 |
% |
Other assets |
|
120,955 |
|
|
|
|
|
|
125,261 |
|
|
|
|
||||
Total assets |
$ |
2,266,559 |
|
|
|
|
|
$ |
2,111,478 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Liabilities and shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
NOW |
$ |
111,515 |
|
$ |
198 |
|
0.18 |
% |
|
$ |
80,805 |
|
$ |
141 |
|
0.17 |
% |
Money market |
|
804,679 |
|
|
4,042 |
|
0.50 |
|
|
|
516,527 |
|
|
4,071 |
|
0.79 |
|
Savings |
|
175,629 |
|
|
413 |
|
0.23 |
|
|
|
169,763 |
|
|
1,368 |
|
0.81 |
|
Time |
|
508,651 |
|
|
5,790 |
|
1.14 |
|
|
|
712,461 |
|
|
12,600 |
|
1.77 |
|
Total interest bearing deposits |
|
1,600,474 |
|
|
10,443 |
|
0.65 |
|
|
|
1,479,556 |
|
|
18,180 |
|
1.23 |
|
Borrowed Money |
|
103,919 |
|
|
3,047 |
|
2.89 |
|
|
|
190,463 |
|
|
4,472 |
|
2.31 |
|
Total interest bearing liabilities |
|
1,704,393 |
|
$ |
13,490 |
|
0.79 |
% |
|
|
1,670,019 |
|
$ |
22,652 |
|
1.36 |
% |
Noninterest bearing deposits |
|
323,648 |
|
|
|
|
|
|
215,073 |
|
|
|
|
||||
Other liabilities |
|
46,710 |
|
|
|
|
|
|
49,897 |
|
|
|
|
||||
Total liabilities |
|
2,074,751 |
|
|
|
|
|
|
1,934,989 |
|
|
|
|
||||
Shareholders' equity |
|
191,808 |
|
|
|
|
|
|
176,489 |
|
|
|
|
||||
Total liabilities and shareholders' equity |
$ |
2,266,559 |
|
|
|
|
|
$ |
2,111,478 |
|
|
|
|
||||
Net interest income(2) |
|
|
$ |
68,087 |
|
|
|
|
|
$ |
55,047 |
|
|
||||
Interest rate spread |
|
|
|
|
2.96 |
% |
|
|
|
|
|
2.49 |
% |
||||
Net interest margin |
|
|
|
|
3.17 |
% |
|
|
|
|
|
2.77 |
% |
||||
(1) |
Average balances and yields for securities are based on amortized cost. |
|
(2) |
The adjustment for securities and loans taxable equivalency amounted to $201 thousand and $212 thousand for the years ended December 31, 2021 and 2020, respectively. |
|
(3) |
Yields are calculated using the contractual day count convention for each respective product type. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220126005957/en/
Contacts
Bankwell Financial Group, Inc.
Christopher R. Gruseke, President and Chief Executive Officer
or
Penko Ivanov, Executive Vice President and Chief Financial Officer
(203) 652-0166
