BWFG | LISTED | NASDAQ
3Q23 Investor Presentation
October 25th, 2023
BWFG
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NASDAQNASDAQ
Safe Harbor
This presentation may contain certain forward-looking statements about Bankwell Financial Group, Inc. (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," "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.
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LISTED NASDAQ | Table of Contents |
BWFG | |
BWFG LISTED | |
NASDAQ |
- 3Q23 Performance
- Deposits & Liquidity
- Loans
- Credit Quality & Capital
- Bankwell History & Overview
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3Q23 Performance
BWFG | LISTED | NASDAQ
BWFG
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3Q23 Summary
- 3Q23 Net Income of $9.8 million, or $1.25 earnings per share ("EPS")
- Return on Average Assets ("ROAA") and Return on Average Equity ("ROAE") were 1.19% and 15.19%, respectively for the quarter, and 1.16% and 15.16% year-to-date
- Pre-tax,Pre-provision Net Revenue ("PPNR")1 of $11.3 million, or 1.37% PPNR ROAA for the quarter
- 1.48% Non-interest Expense as a percent of Average Assets for the quarter and 1.54% year-to-date
- Year-to-datenet interest margin ("NIM") of 3.04%; 3Q23 NIM of 2.85% & September NIM of 2.68%
- Year-to-datenet loan growth of $96 million, with new fundings at a weighted average yield of 7.23%
- Year-to-date,total deposits decreased $32 million, with brokered deposits down $75 million
- $1.7 billion immediately available liquidity providing more than 2X coverage of uninsured deposits
- 25% uninsured deposits; insured deposits include 71% FDIC-insured & 4% insured by FHLB SBLOCs
- $32.55 Tangible Book Value; 15% CAGR since year-end 2020 (including one-time CECL impact)
- AFS securities valuations hedged with interest rate swaps; net AOCI impact of $(1.5) million
- The Bank remains well capitalized with an 11.86% Total Capital ratio and 7.86% Tangible Common Equity
1 Pre-tax,pre-provision net revenue per share is a non-GAAP metric & excludes provision for loan losses and income tax expense | 5 |
2 As of October 24, 2023 |
3 HTM securities not recorded in Book Value
BWFG
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3Q23 Results
QTRYTD
• | Net Income | $9.8 million | $28.1 million | |
Profitability | • | PPNR | $11.3 million | $38.4 million |
• | Return on Average Assets | 1.19% | 1.16% | |
• | PPNR / Average Assets | 1.37% | 1.58% | |
• | Return on Average Equity | 15.19% | 15.16% | |
• $2.8 billion of gross loans | ||||
Balance Sheet | • | $2.8 billion of deposits | ||
• | 1.06% ACL-Loans | |||
• | Dividend of $0.20 per share paid | Tier 1 Leverage1 | 9.60% | |
Capital | • | $32.55 Fully Diluted Tangible Book Value | Tier1/CET1 / RWA1 | 10.82% |
Total Capital / RWA1 | 11.86% | |||
• | Well Capitalized1,2 | |||
1 Ratios presented represent Bank ratios; presented ratios are preliminary, subject to finalization of the FDIC Call Report
2 Bankwell meets Adequate + buffer standard, which exceeds Well Capitalized thresholds | 6 |
BWFG
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Dollars in millions, except per share data
3Q23 Consolidated Financial Statements
Linked Quarter
Income Statement | 3Q23 | 2Q23 | Var1 | |
Total Interest Income | $48.3 | $46.5 | $1.8 | |
Total Interest Expense | $25.6 | $22.5 | $(3.1) | |
Net Interest Income | $22.7 | $24.0 | $(1.3) | |
Non-Interest Income | $0.8 | $1.4 | $(0.6) | |
Non-Interest Expense | $12.2 | $12.7 | $0.5 | |
Pre-Tax,Pre-Provision Net Revenue $11.3 | $12.8 | $(1.5) | ||
(Credit) provision for Credit Losses $(1.6) | $2.6 | $4.2 | ||
Pre-Tax Income | $12.9 | $10.2 | $2.7 | |
Income Tax Expense | $3.1 | $2.2 | $(0.9) | |
Reported Net Income | $9.8 | $8.0 | $1.8 | |
EPS | $1.25 | $1.02 | $0.23 | |
Pre-Tax,Pre-Provision | ||||
Net Revenue per share2 | $1.48 | $1.68 | $(0.20) |
Balance Sheet | 3Q23 | 2Q23 | Var1 | |
Cash & Cash Equivalents | $258 | $262 | $(4) | |
Investment Securities | $116 | $118 | $(2) | |
Loans Receivable, net | $2,735 | $2,737 | $(2) | |
All Other Assets | $141 | $136 | $5 | |
Total Assets | $3,250 | $3,253 | $(3) | |
Total Deposits | $2,769 | $2,789 | $(20) | |
Total Borrowings | $159 | $159 | $0 | |
Other Liabilities | $64 | $56 | $8 | |
Total Liabilities | $2,992 | $3,004 | $(12) | |
Equity | $258 | $249 | $9 | |
Total Liabilities & Equity | $3,250 | $3,253 | $(3) | |
1 Variances are rounded based on actual whole dollar amounts | 7 |
2 Pre-tax,pre-provision net revenue per share is a non-GAAP metric & excludes provision for loan losses and income tax expense |
BWFG
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Dollars in millions, except per share data
YTD Consolidated Income Statement
Prior Year
Income Statement | 3Q 2023 | 3Q 2022 | Var1 |
Total Interest Income | $139.1 | $78.4 | $60.7 |
Total Interest Expense | $66.8 | $10.4 | $(56.4) |
Net Interest Income | $72.2 | $67.9 | $4.3 |
Non-Interest Income | $3.7 | $2.5 | $1.2 |
Non-Interest Expense | $37.5 | $31.9 | $(5.6) |
Pre-Tax,Pre-Provision Net Revenue | $38.4 | $38.6 | $(0.2) |
Provision for Loan Losses | $1.8 | $1.2 | $(0.6) |
Pre-Tax Income | $36.6 | $37.4 | $(0.8) |
Income Tax Expense | $8.4 | $8.0 | $(0.4) |
Reported Net Income | $28.1 | $29.4 | $(1.3) |
EPS | $3.58 | $3.75 | $(0.17) |
Pre-Tax,Pre-Provision | |||
Net Revenue per share2 | $5.02 | $5.03 | $(0.01) |
1 Variances are rounded based on actual whole dollar amounts | |
2 Pre-tax,pre-provision net revenue per share is a non-GAAP metric & excludes provision for loan losses and income tax expense | 8 |
BWFG
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Diluted EPS
$4.79
$3.36$3.58
$2.21 $2.31
$0.75
2018 | 2019 | 2020 | 2021 | 2022 | 3Q23 YTD |
Return on Average Equity
16.72%
Performance Trends
Fully Diluted Tangible Book Value
$32.55
$30.51
$25.55
$21.85 $22.82 $21.96
3Q231 | ||||||
2018 | 2019 | 2020 | 2021 | 2022 |
Return on Average Assets
1.44%
13.86%
10.19% 10.20%
3.35%
15.16%
1.17%1.16%
0.94% 0.97%
0.28%
2018 | 2019 | 2020 | 2021 | 2022 | 3Q23 YTD |
1 Includes $0.63 impact for the 1/1/23 CECL adjustment
2018 | 2019 | 2020 | 2021 | 2022 | 3Q23 YTD |
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BWFG
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Efficiency Trends
80.0% | Efficiency Ratio | 1 | |||||
73.9% | |||||||
2.40% | |||||||
70.0% | Non-interest Expense / Average Assets | ||||||
59.2% | 60.2% | 2.20% | |||||
2.03% | |||||||
60.0% | |||||||
53.9% | |||||||
1.93% | |||||||
1.90% | 49.4% | 2.00% | |||||
50.0% | 45.4% | ||||||
1.75% | 1.71% | 1.80% | |||||
40.0% | |||||||
1.54% | 1.60% | ||||||
30.0% | |||||||
1.40% | |||||||
20.0% | |||||||
10.0% | 1.20% | ||||||
0.0% | 1.00% | ||||||
2018 | 2019 | 2020 | 2021 | 2022 | 3Q23 YTD |
1 A non-GAAP metric
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Disclaimer
Bankwell Financial Group Inc. published this content on 25 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 October 2023 20:45:56 UTC.