bwfg-20220427

BANKWELL FINANCIAL GROUP REPORTS RECORD NET INCOME FOR THE FIRST QUARTER; DECLARES SECOND QUARTER DIVIDEND

New Canaan, CT – April 27, 2022 – Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported record GAAP net income of $8.2 million, or $1.04 per share, for the first quarter of 2022, versus $5.7 million, or $0.71 per share, for the same period in 2021.

The Company's Board of Directors declared a $0.20 per share cash dividend, payable May 23, 2022 to shareholders of record on May 13, 2022.

We recommend reading this earnings release in conjunction with the First Quarter 2022 Investor Presentation, located at http://investor.mybankwell.com/Presentations and included as an exhibit to our April 27, 2022 Current Report on Form 8-K.

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

"Our team has begun the year with continued high performance. Loan balances grew by almost 5% compared to year end 2021 and our financial results for the quarter were exceptionally strong. The Company achieved record ROAA and ROAE levels of 1.35% and 16.05%, respectively, while operating at an efficiency ratio of 48.5%.

"On the operational front, we have just completed a successful conversion of our core data processing system. This is the second major system conversion the team has successfully executed within the past twelve months as we invested in a new online banking platform during the 2nd half of 2021. We have also begun a systematic review of every operational process at the Bank. This process mapping project will help to identify opportunities to employ further technological solutions and increase efficiencies through the organization.

"Credit quality remains high and our loan pipeline is as vibrant as it has been for the last several quarters. We reaffirm prior guidance of year over year net interest income growth of 12%-14% for 2022.

"Most importantly, I’d like to congratulate and thank my Bankwell colleagues whose hard work and dedication have made the Company’s accomplishments possible."

First Quarter 2022 Highlights:

•Return on average assets was 1.35% and return on average equity was 16.05% for the quarter ended March 31, 2022.

•The net interest margin was 3.30% for the quarter ended March 31, 2022.

•The efficiency ratio was 48.5% for the quarter ended March 31, 2022.

•Total gross loans were $2.0 billion, growing $90.4 million, or 4.8%, compared to December 31, 2021.

•Gains from loan sales totaled $0.6 million for the quarter ended March 31, 2022.

•Total deposits were $2.2 billion compared to $2.1 billion at December 31, 2021.

•Noninterest bearing deposits increased by $14.0 million, or 3.5% compared to December 31, 2021.

•The percentage of noninterest bearing deposits to total deposits increased to 19.1% compared to 18.8% at December 31, 2021.

•Investment securities totaled $116.8 million and represent 4.7% of total assets.

•Fully diluted tangible book value per share rose to $26.75 compared to $25.55 at December 31, 2021.

•Shares issued and outstanding were 7,761,338, reflecting repurchases of 112,829 shares of common stock at a weighted average price of $34.01 during the quarter ended March 31, 2022.

Earnings and Performance

Revenues (net interest income plus noninterest income) for the quarter ended March 31, 2022 were $20.5 million, versus $16.6 million for the quarter ended March 31, 2021. The increase was primarily attributable to an increase in interest and fees on loans due to loan growth and higher overall loan yields and from lower interest expense on deposits. The increase in revenues was partially offset by a decrease in noninterest income driven by a one-time federal payroll tax credit for COVID-19 of $0.9 million recognized in the quarter ended March 31, 2021.

Net income for the quarter ended March 31, 2022 was $8.2 million, versus $5.7 million for the quarter ended March 31, 2021. The increase in net income was primarily impacted by the aforementioned increases in revenues, partially offset by an increase in the provision for loan losses driven by loan growth and a slight increase in noninterest expense.

Basic and diluted earnings per share were $1.05 and $1.04, respectively, for the quarter ended March 31, 2022 compared to basic and diluted earnings per share of $0.72 and $0.71, respectively, for the quarter ended March 31, 2021.

The net interest margin (fully taxable equivalent basis) for the quarters ended March 31, 2022 and March 31, 2021 was 3.30% and 2.74%, respectively. The increase in the net interest margin was due to lower interest expense from a decrease in rates on interest bearing deposits, a greater proportion of noninterest bearing deposits and, to a lesser extent, an increase in overall loan yields.

Financial Condition

Assets totaled $2.50 billion at March 31, 2022, compared to assets of $2.46 billion at December 31, 2021. The increase in assets was primarily due to loan growth, partially offset by a decrease in excess liquidity. Gross loans totaled $2.0 billion at March 31, 2022, an increase of $90.4 million compared to December 31, 2021. Deposits totaled $2.2 billion at March 31, 2022, compared to deposits of $2.1 billion at December 31, 2021.

Capital

Shareholders’ equity totaled $210.2 million as of March 31, 2022, an increase of $8.2 million compared to December 31, 2021, primarily a result of (i) net income of $8.2 million for the quarter ended March 31, 2022 and (ii) a $4.9 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 $1.6 million and common stock repurchases of $3.8 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, 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)


	March 31, 2022		December 31, 2021		March 31, 2021
ASSETS
Cash and due from banks	$	280,471	$	291,598	$	351,194
Federal funds sold	19,022		53,084		10,811
Cash and cash equivalents	299,493		344,682		362,005

Investment securities
Marketable equity securities, at fair value	2,090		2,168		2,178
Available for sale investment securities, at fair value	98,733		90,198		83,218
Held to maturity investment securities, at amortized cost	15,979		16,043		16,225
Total investment securities	116,802		108,409		101,621
Loans receivable (net of allowance for loan losses of $17,141, $16,902 and $20,545 at March 31, 2022, December 31, 2021 and March 31, 2021, respectively)	1,964,567		1,875,167		1,650,127

Accrued interest receivable	7,733		7,512		7,306
Federal Home Loan Bank stock, at cost	2,870		2,814		6,446
Premises and equipment, net	25,661		25,588		33,386
Bank-owned life insurance	49,434		49,174		42,881
Goodwill	2,589		2,589		2,589
Other intangible assets	—		—		67
Deferred income taxes, net	6,879		7,621		8,908
Other assets	20,849		32,708		29,131
Total assets	$	2,496,877	$	2,456,264	$	2,244,467

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits
Noninterest bearing deposits	$	412,985	$	398,956	$	280,947
Interest bearing deposits	1,753,219		1,725,042		1,578,861
Total deposits	2,166,204		2,123,998		1,859,808

Advances from the Federal Home Loan Bank	50,000		50,000		125,000
Subordinated debentures	34,471		34,441		25,271
Accrued expenses and other liabilities	35,982		45,838		46,445
Total liabilities	2,286,657		2,254,277		2,056,524

Shareholders’ equity
Common stock, no par value	114,882		118,148		120,398
Retained earnings	99,047		92,400		75,418
Accumulated other comprehensive loss	(3,709)		(8,561)		(7,873)
Total shareholders’ equity	210,220		201,987		187,943

Total liabilities and shareholders’ equity	$	2,496,877	$	2,456,264	$	2,244,467

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

(Dollars in thousands, except share data)


	For the Quarter Ended
	March 31, 2022		December 31, 2021		March 31, 2021
Interest and dividend income
Interest and fees on loans	$	21,428	$	21,081	$	17,900
Interest and dividends on securities	720		722		769
Interest on cash and cash equivalents	154		90		108
Total interest and dividend income	22,302		21,893		18,777

Interest expense
Interest expense on deposits	2,206		2,198		3,114
Interest expense on borrowings	586		767		1,008
Total interest expense	2,792		2,965		4,122

Net interest income	19,510		18,928		14,655
Provision (credit) for loan losses	229		125		(296)
Net interest income after provision (credit) for loan losses	19,281		18,803		14,951

Noninterest income
Gains and fees from sales of loans	631		441		513
Bank owned life insurance	260		270		231
Service charges and fees	240		257		199


Other	(173)		(143)		1,013
Total noninterest income	958		825		1,956

Noninterest expense
Salaries and employee benefits	4,940		4,806		4,769
Occupancy and equipment	2,150		2,411		2,406
Professional services	981		628		587
Data processing	654		432		512
Director fees	352		335		317
FDIC insurance	223		231		403
Marketing	45		87		(9)

Other	580		749		653
Total noninterest expense	9,925		9,679		9,638

Income before income tax expense	10,314		9,949		7,269
Income tax expense	2,102		2,135		1,579
Net income	$	8,212	$	7,814	$	5,690

Earnings Per Common Share:
Basic	$	1.05	$	1.00	$	0.72
Diluted	$	1.04	$	0.99	$	0.71

Weighted Average Common Shares Outstanding:
Basic	7,637,077		7,660,307		7,758,540
Diluted	7,719,405		7,726,420		7,800,777
Dividends per common share	$	0.20	$	0.18	$	0.14

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)


	For the Quarter Ended
	March 31, 2022		December 31, 2021		March 31, 2021
Performance ratios:
Return on average assets	1.35	%	1.32	%	1.02	%
Return on average stockholders' equity	16.05	%	15.44	%	12.67	%
Return on average tangible common equity	16.25	%	15.65	%	12.86	%
Net interest margin	3.30	%	3.43	%	2.74	%
Efficiency ratio(1)	48.5	%	48.8	%	58.0	%
Net loan charge-offs as a % of average loans	—	%	—	%	0.01	%
Dividend payout ratio(2)	19.23	%	18.18	%	19.72	%

(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
	March 31, 2022			December 31, 2021			March 31, 2021
Capital ratios:
Total Common Equity Tier 1 Capital to Risk-Weighted Assets(1)	11.20		%	11.18		%	11.02		%
Total Capital to Risk-Weighted Assets(1)	12.00		%	12.00		%	12.17		%
Tier I Capital to Risk-Weighted Assets(1)	11.20		%	11.18		%	11.02		%
Tier I Capital to Average Assets(1)	9.80		%	9.94		%	8.82		%
Tangible common equity to tangible assets	8.32		%	8.13		%	8.27		%
Fully diluted tangible book value per common share	$	26.75		$	25.55		$	23.43

(1)Represents Bank ratios. Current period capital ratios are preliminary subject to finalization of the FDIC Call Report.

BANKWELL FINANCIAL GROUP, INC.

ASSET QUALITY (unaudited)

(Dollars in thousands)


	For the Quarter Ended
	March 31, 2022		December 31, 2021		March 31, 2021
Allowance for loan losses:
Balance at beginning of period	$	16,902	$	16,803	$	21,009
Charge-offs:

Commercial real estate	—		—		(163)
Commercial business	—		(26)		—
Consumer	(4)		(5)		(14)
Total charge-offs	(4)		(31)		(177)
Recoveries:

Commercial business	13		2		—
Consumer	1		3		9
Total recoveries	14		5		9
Net loan recoveries (charge-offs)	10		(26)		(168)
Provision (credit) for loan losses	229		125		(296)
Balance at end of period	$	17,141	$	16,902	$	20,545


	As of
	March 31, 2022			December 31, 2021			March 31, 2021
Asset quality:
Nonaccrual loans
Residential real estate	$	2,181		$	2,380		$	1,289
Commercial real estate	3,365			3,482			19,277
Commercial business	817			1,728			1,803
Construction	9,382			8,997			8,997
Total nonaccrual loans	15,745			16,587			31,366
Other real estate owned	—			—			—
Total nonperforming assets	$	15,745		$	16,587		$	31,366

Nonperforming loans as a % of total loans	0.79		%	0.88		%	1.87		%
Nonperforming assets as a % of total assets	0.63		%	0.68		%	1.40		%
Allowance for loan losses as a % of total loans	0.86		%	0.89		%	1.23		%
Allowance for loan losses as a % of nonperforming loans	108.87		%	101.90		%	65.50		%

Total nonaccrual loans declined $0.8 million to $15.7 million as of March 31, 2022 when compared to December 31, 2021. Nonperforming assets as a percentage of total assets was 0.63% at March 31, 2022, down from 0.68% at December 31, 2021. The allowance for loan losses at March 31, 2022 was $17.1 million, representing 0.86% of total loans.

BANKWELL FINANCIAL GROUP, INC.

LOAN & DEPOSIT PORTFOLIO (unaudited)

(Dollars in thousands)


Period End Loan Composition	March 31, 2022		December 31, 2021		% Change
Residential Real Estate	$	68,617	$	79,987	(14.2)	%
Commercial Real Estate(1)	1,425,758		1,356,709		5.1
Construction	115,514		98,341		17.5
Total Real Estate Loans	1,609,889		1,535,037		4.9

Commercial Business	370,166		350,975		5.5

Consumer	5,275		8,869		(40.5)
Total Loans	$	1,985,330	$	1,894,881	4.8	%

(1) Includes owner occupied commercial real estate.

Gross loans totaled $2.0 billion at March 31, 2022, an increase of $90.4 million compared to December 31, 2021.


Period End Deposit Composition	March 31, 2022		December 31, 2021		% Change
Noninterest bearing demand	$	412,985	$	398,956	3.5	%
NOW	112,567		119,479		(5.8)
Money Market	996,458		954,674		4.4
Savings	197,961		193,631		2.2
Time	446,233		457,258		(2.4)
Total Deposits	$	2,166,204	$	2,123,998	2.0	%

Total deposits were $2.2 billion at March 31, 2022, compared to $2.1 billion at December 31, 2021, an increase of $42.2 million, or 2.0%.

BANKWELL FINANCIAL GROUP, INC.

NONINTEREST INCOME AND EXPENSE (unaudited)

(Dollars in thousands)


	For the Quarter Ended
Noninterest income	March 31, 2022		December 31, 2021		March 31, 2021		Mar 22 vs. Dec 21 % Change		Mar 22 vs. Mar 21 % Change
Gains and fees from sales of loans	$	631	$	441	$	513	43.1	%	23.0	%
Bank owned life insurance	260		270		231		(3.7)		12.6
Service charges and fees	240		257		199		(6.6)		20.6


Other	(173)		(143)		1,013		21.0		(117.1)
Total noninterest income	$	958	$	825	$	1,956	16.1	%	(51.0)	%

Noninterest income decreased by $1.0 million to $1.0 million for the quarter ended March 31, 2022 compared to the quarter ended March 31, 2021. The decrease in noninterest income was driven by a one-time federal payroll tax credit for COVID-19 of $0.9 million recognized in the quarter ended March 31, 2021.


	For the Quarter Ended
Noninterest expense	March 31, 2022		December 31, 2021		March 31, 2021		Mar 22 vs. Dec 21 % Change		Mar 22 vs. Mar 21 % Change
Salaries and employee benefits	$	4,940	$	4,806	$	4,769	2.8	%	3.6	%
Occupancy and equipment	2,150		2,411		2,406		(10.8)		(10.6)
Professional services	981		628		587		56.2		67.1
Data processing	654		432		512		51.4		27.7
Director fees	352		335		317		5.1		11.0
FDIC insurance	223		231		403		(3.5)		(44.7)
Marketing	45		87		(9)		(48.3)		N/M(1)
Other	580		749		653		(22.6)		(11.2)
Total noninterest expense	$	9,925	$	9,679	$	9,638	2.5	%	3.0	%
(1) Metric not meaningful

Noninterest expense increased by $0.3 million to $9.9 million for the quarter ended March 31, 2022 compared to the quarter ended March 31, 2021. The increase in noninterest expense was primarily driven by an increase in professional services expense and data processing expense.

Professional services expense totaled $1.0 million for the quarter ended March 31, 2022, an increase of $0.4 million when compared to the same period in 2021. The increase in professional services expense was primarily driven by consulting fees associated with various projects, including our core system conversion.

Data processing expense totaled $0.7 million for the quarter ended March 31, 2022, an increase of $0.1 million when compared to the same period in 2021. The increase in data processing expense was primarily driven by costs associated with our new online banking system.

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	March 31, 2022			December 31, 2021			March 31, 2021
Total Equity	$	210,220		$	201,987		$	187,943
Less:
Goodwill	2,589			2,589			2,589
Other intangibles	—			—			67
Tangible Common Equity	$	207,631		$	199,398		$	185,287

Total Assets	$	2,496,877		$	2,456,264		$	2,244,467
Less:
Goodwill	2,589			2,589			2,589
Other intangibles	—			—			67
Tangible Assets	$	2,494,288		$	2,453,675		$	2,241,811

Tangible Common Equity to Tangible Assets	8.32		%	8.13		%	8.27		%


	As of
Computation of Fully Diluted Tangible Book Value per Common Share	March 31, 2022		December 31, 2021		March 31, 2021
Total shareholders' equity	$	210,220	$	201,987	$	187,943
Less:
Preferred stock	—		—		—
Common shareholders' equity	$	210,220	$	201,987	$	187,943
Less:
Goodwill	2,589		2,589		2,589
Other intangibles	—		—		67
Tangible common shareholders' equity	$	207,631	$	199,398	$	185,287

Common shares issued and outstanding	7,761,338		7,803,166		7,908,630







Fully Diluted Tangible Book Value per Common Share	$	26.75	$	25.55	$	23.43

BANKWELL FINANCIAL GROUP, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited) - Continued

(Dollars in thousands)


	For the Quarter Ended
Computation of Efficiency Ratio	March 31, 2022			December 31, 2021			March 31, 2021
Noninterest expense	$	9,925		$	9,679		$	9,638
Less:
Amortization of intangible assets	—			48			9
Other real estate owned expenses	—			—			—
Adjusted noninterest expense	$	9,925		$	9,631		$	9,629
Net interest income	$	19,510		$	18,928		$	14,655
Noninterest income	958			825			1,956
Less:
Net gain on sale of available for sale securities	—			—			—
Gain on sale of other real estate owned, net	—			—			—
Operating revenue	$	20,468		$	19,753		$	16,611

Efficiency ratio	48.5		%	48.8		%	58.0		%


	For the Quarter Ended
Computation of Return on Average Tangible Common Equity	March 31, 2021			December 31, 2020			March 31, 2021
Net Income Attributable to Common Shareholders	$	8,212		$	7,814		$	5,690
Total average shareholders' equity	$	207,541		$	200,752		$	182,058
Less:
Average Goodwill	2,589			2,589			2,589
Average Other intangibles	—			45			73
Average tangible common equity	$	204,952		$	198,118		$	179,396

Annualized Return on Average Tangible Common Equity	16.25		%	15.65		%	12.86		%

BANKWELL FINANCIAL GROUP, INC.

NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - QTD (unaudited)

(Dollars in thousands)


	For the Quarter Ended
	March 31, 2022						March 31, 2021
	Average Balance		Interest		Yield/ Rate (4)		Average Balance		Interest		Yield/ Rate (4)
Assets:
Cash and Fed funds sold	$	346,183	$	154	0.18	%	$	401,900	$	108	0.11	%
Securities(1)	112,337		754		2.69		101,176		788		3.11
Loans:
Commercial real estate	1,343,565		14,997		4.46		1,129,224		12,731		4.51
Residential real estate	73,835		671		3.64		112,053		964		3.44
Construction	102,179		1,033		4.04		94,075		885		3.76
Commercial business	383,115		4,625		4.83		294,756		3,271		4.44
Consumer	6,054		102		6.85		5,039		49		3.94
Total loans	1,908,748		21,428		4.49		1,635,147		17,900		4.38
Federal Home Loan Bank stock	2,835		15		2.10		6,508		31		1.96
Total earning assets	2,370,103		$	22,351	3.77	%	2,144,731		$	18,827	3.51	%
Other assets	100,469						113,561
Total assets	$	2,470,572					$	2,258,292

Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW	$	112,199	$	47	0.17	%	$	101,057	$	43	0.17	%
Money market	969,527		1,180		0.49		736,659		950		0.52
Savings	194,463		101		0.21		160,347		125		0.32
Time	453,805		878		0.78		611,153		1,996		1.32
Total interest bearing deposits	1,729,994		2,206		0.52		1,609,216		3,114		0.78
Borrowed Money	84,452		586		2.77		152,485		1,008		2.64
Total interest bearing liabilities	1,814,446		$	2,792	0.62	%	1,761,701		$	4,122	0.95	%
Noninterest bearing deposits	405,400						269,863
Other liabilities	43,185						44,670
Total liabilities	2,263,031						2,076,234
Shareholders' equity	207,541						182,058
Total liabilities and shareholders' equity	$	2,470,572					$	2,258,292
Net interest income(2)			$	19,559					$	14,705
Interest rate spread					3.15	%					2.56	%
Net interest margin(3)					3.30	%					2.74	%

(1)Average balances and yields for securities are based on amortized cost.

(2)The adjustment for securities and loans taxable equivalency amounted to $49 thousand and $50 thousand for the quarters ended March 31, 2022 and 2021, 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.

BWFG | LISTED | NASDAQ 1Q22 Investor Presentation April 27th, 2022

2 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 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 securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and its subsidiaries are engaged. The COVID-19 pandemic continues to affect Bankwell Financial Group, its customers, counterparties, employees, and third party service providers, and the ultimate extent of the impacts on its business, financial position, results of operations, liquidity, and prospects is unknown. Safe Harbor

3 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Table of Contents • 1Q22 Performance • Trends • ALLL & Non-Performing Loans • Loan Portfolio • Capital • Bankwell History & Overview

BWFG | LISTED | NASDAQ 1Q22 Performance

5 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 1Q22 Summary • Record net income of $8.21 million, or $1.04 earnings per share • Return on Average Assets and Return on Average Equity were 1.35% and 16.05%, respectively • Pre-tax, pre-provision net revenue (“PPNR”)1 of $10.54 million, or 1.73% PPNR ROAA • Loan growth of $90 million, or ~19% growth annualized • Net Interest Margin (“NIM”) of 3.30%, versus 3.17% NIM in 2021 ̶ 2022 new loan originations average pricing of 4.61%, vs 2021 year-end portfolio yield of 4.30% • Repurchased 112,829 shares at an average price of $34.01 during the quarter 1 Pre-tax, pre-provision net revenue per share is a non-GAAP metric & excludes provision for loan losses and income tax expense

6 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 1Q22 Results 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 Profitability Balance Sheet Capital • $2.0 billion of gross loans • $2.2 billion of deposits • 0.86% ALLL; not subject to CECL • Dividend of $0.20 per share paid • $26.75 Fully Diluted Tangible Book Value • Well Capitalized1,2 Tier 1 Leverage 9.80% Tier1/CET1 / RWA 11.20% Total Capital / RWA 12.00% • Net Income $8.2 million • PPNR $10.5 million • Return on Average Assets 1.35% • PPNR / Average Assets 1.73% • Return on Average Equity 16.05%

7 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Income Statement 1Q22 4Q21 Var1 Total Interest Income $22.3 $21.9 $0.4 Total Interest Expense $2.8 $3.0 $(0.2) Net Interest Income $19.5 $18.9 $0.6 Non-Interest Income $1.0 $0.8 $0.1 Non-Interest Expense $9.9 $9.7 $(0.2) Pre-Tax, Pre-Provision Net Revenue $10.5 $10.1 $0.5 Provision for Loan Losses $0.2 $0.1 $(0.1) Pre-Tax Income $10.3 $9.9 $0.4 Income Tax Expense $2.1 $2.1 $0.0 Reported Net Income $8.2 $7.8 $0.4 EPS $1.04 $0.99 $0.05 Pre-Tax, Pre-Provision Net Revenue per share2 $1.37 $1.30 $0.07 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 Dollars in millions, except per share data Balance Sheet 1Q22 4Q21 Var1 Cash & Cash Equivalents $299 $345 $(45) Investment Securities $117 $108 $8 Loans Receivable, net $1,965 $1,875 $89 All Other Assets $116 $128 $(12) Total Assets $2,497 $2,456 $41 Total Deposits $2,166 $2,124 $42 Total Borrowings $84 $84 $0 Other Liabilities $36 $46 $(10) Total Liabilities $2,287 $2,254 $32 Equity $210 $202 $8 Total Liabilities & Equity $2,497 $2,456 $41 1Q22 Consolidated Financial Statements Linked Quarter

8 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Income Statement 1Q22 1Q21 Var1 Total Interest Income $22.3 $18.8 $3.5 Total Interest Expense $2.8 $4.1 $1.3 Net Interest Income $19.5 $14.7 $4.9 Non-Interest Income $1.0 $2.0 $(1.0) Non-Interest Expense $9.9 $9.7 $(0.3) Pre-Tax, Pre-Provision Net Revenue $10.5 $7.0 $3.6 Provision for Loan Losses $0.2 $(0.3) $(0.5) Pre-Tax Income $10.3 $7.3 $3.0 Income Tax Expense $2.1 $1.6 $(0.5) Reported Net Income $8.2 $5.7 $2.5 EPS $1.04 $0.71 $0.33 Pre-Tax, Pre-Provision Net Revenue per share2 $1.37 $0.89 $0.48 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 Dollars in millions, except per share data Balance Sheet 1Q22 1Q21 Var1 Cash & Cash Equivalents $299 $362 $(63) Investment Securities $117 $102 $15 Loans Receivable, net $1,965 $1,650 $314 All Other Assets $116 $131 $(15) Total Assets $2,497 $2,244 $252 Total Deposits $2,166 $1,860 $306 Total Borrowings $84 $150 $(66) Other Liabilities $36 $46 $(10) Total Liabilities $2,287 $2,057 $230 Equity $210 $188 $22 Total Liabilities & Equity $2,497 $2,244 $252 1Q22 Consolidated Financial Statements Prior Year

BWFG | LISTED | NASDAQ Trends

10 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Performance Trends $1.78 $2.21 $2.31 $0.75 $3.36 $1.04 2017 2018 2019 2020 2021 1Q22 Diluted EPS 0.80% 0.94% 0.97% 0.28% 1.17% 1.35% 2017 2018 2019 2020 2021 1Q22 Return on Average Assets 8.93% 10.19% 10.20% 3.35% 13.86% 16.05% 2017 2018 2019 2020 2021 1Q22 Return on Average Equity $20.39 $21.85 $22.82 $21.96 $25.55 $26.75 2017 2018 2019 2020 2021 1Q22 Fully Diluted Tangible Book Value

11 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Net Interest Margin 3.30% 3.18% 3.03% 2.77% 3.17% 3.30% 2017 2018 2019 2020 2021 1Q22 Net Interest Margin 1.08% 1.42% 1.75% 1.20% 0.67% 0.51% 0.93% 1.30% 1.66% 1.07% 0.54% 0.42% 2017 2018 2019 2020 2021 1Q22 Cost of Funds / Deposits Cost of Funds Cost of Deposits 4.51% 4.67% 4.85% 4.48% 4.42% 4.49% 4.23% 4.45% 4.61% 3.85% 3.75% 3.78% 2017 2018 2019 2020 2021 1Q22 Loan & Earning Asset Yields Loan Yield Earning Asset Yield Yields include origination fee amortization Full year 2022 NIM expected to be above 2021 • Expecting near-term NIM expansion • Use of excess liquidity for loan growth • Loan origination yields above existing portfolio yields

12 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Loan Trends $1,107 $1,168 $1,202 $1,182 $1,235 $1,241 $436 $436 $402 $444 $660 $744 $1,543 $1,605 $1,604 $1,626 $1,895 $1,985 2017 2018 2019 2020 2021 1Q22 Loan Balances All Other C&I + CRE Owner Occupied 1Q22 Loan Mix 1Q22 Portfolio Yield by Vintage1 C&I + CRE Owner Occupied / Total Loans 28% 27% 25% 27% 35% 37% 1 Weighted average yield based on active loans as of 1-31-2022 Dollars in millions Residential 3.19% C&I 18.65% CRE Owner Occupied 18.90% CRE Investor 52.93% Commercial Const. 5.82% Consumer Loans / Other 0.51% 4.24% Pre 2019 4.08% 2019 4.04% 2020 4.58% 2021 4.61% 2022

13 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 11.5% 12.8% 14.8% 18.8% 19.1% 4Q18 4Q19 4Q20 4Q21 1Q22 Deposit Trends 18.5% 16.2% 12.4% 14.1% 15.9% 1 1 Core Deposits include Commercial and Consumer checking, savings and money market accounts 2 Wholesale Funding ratio defined as brokered deposits and FHLB borrowings to total assets Non-Interest Bearing Deposits Mix Trend 17.7% 18.5% 16.2% 15.0% 16.7% 16.2% 30.3% 28.1% 28.6% 20.1% 9.7% 9.0% 52.0% 53.4% 55.3% 64.9% 73.6% 74.8% $1,398 $1,502 $1,492 $1,827 $2,124 $2,166 2017 2018 2019 2020 2021 1Q22 Deposit Balances Brokered Deposits Retail CDs Core Deposits $213 $231 $471 $611 $657 $156 $178 $255 $383 $395 $369 $409 $725 $994 $1,052 4Q18 4Q19 4Q20 4Q21 1Q22 Commercial Deposits Trend Interest Bearing Non-Interest Bearing 24.9% 23.4% 20.6% 19.8% 16.4% 16.0% Wholesale Funding ratio2 FHLB Borrowings Dollars in millions $199 $160 $150 $175 $50 $50 Core deposit growth ahead of strong loan pipeline

14 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Non Interest Expense Full year 2022 Efficiency Ratio expected to improve versus 2021 despite anticipated Fed rate hikes 1.93% 1.90% 2.03% 1.75% 1.63% 2018 2019 2020 2021 1Q22 Non Interest Expense / Avg Assets 59.2% 60.2% 73.9% 53.9% 48.5% 2018 2019 2020 2021 1Q22 Efficiency Ratio

BWFG | LISTED | NASDAQ ALLL & Non-Performing Loans

16 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Non Performing Loans 0.66% 2.06% 0.88% 0.79% 2019 2020 2021 1Q22 Non Performing Loans / Gross Loans NPLs $10,588 $33,416 $16,587 $15,745 0.47% 0.18% 0.14% 1Q22 Detail 0.79% SBA-guaranteed portion of NPLs All other NPLs NPL population adequately collateralized or individually reserved in ALLL COVID-19 related NPL Dollars in thousands • ~$1 million of previously reported NPLs paid off during the quarter • No remaining COVID-19 deferral loans at the end of 1Q22 • Single loan - 57% LTV • Full recourse • High net worth guarantors • Full repayment expected

17 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 0.74% 0.72% 0.15% $(0.9) million $1.2 million $(0.1) million 0.14% 2021 Improving Economic Factors Asset Growth / Mix Specifics 1Q22 General Specific 1Q22 ALLL Coverage Allowance for Loan Loss (“ALLL”) Walk 0.89% 0.86% • Improving Economic Factors reflect release of remaining COVID-19-related reserves • Bankwell not subject to CECL; ALLL calculated in accordance with the incurred loss model $16.9 Million $17.1 Million

BWFG | LISTED | NASDAQ Loan Portfolio

19 BWFG LISTED NASDAQ BWFG LISTED NASDAQ CT 44% NY 19% NJ 11% All Other 26% Retail 29.11% Office 21.64% Healthcare 19.36% MultiFamily 9.55% Industrial Warehouse 7.96% Mixed Use 5.38% Other 3.65% Special Use 3.36% • Property Type mix continues to show well diversified exposure • ~ 52% of all CRE loan balances have recourse ̶ Non recourse loans require lower LTV and higher DSCR Total CRE Portfolio by Property Type $1,426 million Type Count $MM % LTV3 Retail2 81 $249 60% 64.5% Grocery 11 $100 24% 65.0% Restaurant 24 $24 6% 63.0% Pharmacy 7 $22 5% 65.7% Gas / Auto Services 15 $20 5% 73.3% Total Retail 138 $415 100% 65.0% Retail Segment Detail • No significant exposure to any one retailer • No exposure to bankrupt retailers 1 Includes Owner Occupied CRE, does not include Construction 2 Comprised primarily of neighborhood and convenience centers, typically characterized by: size up to 125,000 sq. ft.; convenience and service oriented 3 LTVs based on LTV at origination 4 Consists primarily of skilled nursing and/or assisted living facilities Office Segment Detail Type Count $MM % LTV3 Office (primarily suburban) 77 $225 73% 62.0% Medical 37 $82 27% 68.6% Condo 4 $1 0% 64.9% Total Office 118 $309 100% 63.8% CRE Loan Portfolio1 4

20 BWFG LISTED NASDAQ BWFG LISTED NASDAQ C&I Loan Portfolio Loans by Industry Type Total C&I Portfolio = $370 million • Limited leverage loan exposure of $34 million as of 3/31/22, ~2% of total loans • Lines of Credit are primarily uncommitted lines Finance 23% Insurance (Primarily Brokers) 37% Health Care & Social Assistance 17% Arts, Entertainment & Recreation 5% Wholesale 4% Retail Trade 3% Professional, Sci & Tech Services 3% Real Estate and Rental/Leasing 2% All Other 6% 1 1 Includes luxury auto leasing and financing

BWFG | LISTED | NASDAQ Capital

22 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Tangible Book Value • AOCI: $1.10 favorable change from mark-to-market on long-dated interest rate swaps offset by ($0.47) unfavorable change from AFS investment portfolio • Repurchased 112,829 shares at an average price of $34.01 during the quarter 1 Misc includes items such as, but not limited to, changes related to stock grants and share count 1 Fully Diluted Tangible Book Value (TBV) Per Share Walk $25.55 $26.75 $1.04 $0.20 $0.62 $0.10 $0.16 2021 Net Income Dividends AOCI Share Buyback Misc 1Q22

23 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Capital Position 8.13% 9.94% 11.18% 12.00% 8.32% 9.80% 11.20% 12.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% TC E Ti er 1 Le ve ra ge Ti er 1 / CE T1 To ta l C ap ita l 1Q22 4Q21 ‘Adequate’ + Buffer Min Bankwell’s capital position remains strong 2 Tier 1CET1 CRE concentration of 446%1 1 Current period Bank capital ratios are preliminary, subject to finalization of the FDIC Call Report 2 TCE calculation is a consolidated BWFG ratio Key Bank Capital Ratios1

BWFG | LISTED | NASDAQ History & Overview

25 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Bankwell operates in an attractive core market: • Third most affluent MSA in the Nation in per capita personal income (PCPI)2 • 4 of the top 25 wealthiest towns in the U.S.3 • MSA ranked 12th most educated overall, tied for 1st with the highest percentage of graduate or professional degree holders4 • Headquarters of 9 Fortune 500 companies5 • Home to two of the largest hedge funds in the U.S. • $27 billion total AUM managed by 68 firms with $1 billion or less in AUM6 • 375 thousand housing units with a median value of owner-occupied units of $429 thousand7 ̶ In addition, New Haven County has 369 thousand housing units with a median value of owner-occupied units of $249 thousand7 1 Source: S&P Global Market Intelligence’s Branch Competitors & Pricing Report as of 6/30/21, excluding global money center banks (tickers BAC, WFC, JPM, TD & C) 2 Source: Bureau of Economic Analysis’ Metropolitan Area Table, contained within the Personal Income by County & Metropolitan Area, 2020 news release 11/16/21 3 Source: Bloomberg: 2020 Richest Places 4 Source: WalletHub: Most & Least Educated Cities in America, 7/19/21 5 Source: Fortune.com: 2021 Fortune 500 6 Source: US News and World Report 7 Source: US Census Bureau QuickFacts (2019 data) Existing Branches (10) Fairfield County Profile • Connecticut-based $2.5 billion commercial bank • 10 branches in Fairfield & New Haven Counties • $177 million deposits per branch; one of the highest in Fairfield & New Haven Counties1

26 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Financial Snapshot 2017 2018 2019 2020 2021 1Q22 Total assets $1,796,607 $1,873,665 $1,882,182 $2,253,747 $2,456,264 $2,496,877 Net loans $1,520,879 $1,586,775 $1,588,840 $1,601,672 $1,875,167 $1,964,567 Loan-to-deposit ratio 110.1% 106.4% 107.1% 87.9% 88.8% 91.5% Efficiency ratio2 54.9% 59.2% 60.2% 73.9% 53.9% 48.5% Non-interest expense / avg. assets 1.88% 1.93% 1.90% 2.03% 1.75% 1.63% Net interest margin 3.30% 3.18% 3.03% 2.77% 3.17% 3.30% Total capital to risk weighted assets 12.19% 12.50% 13.35% 12.28% 12.00% 12.00% Tangible common equity ratio2 8.81% 9.16% 9.56% 7.73% 8.13% 8.32% Return on average equity 8.93% 10.19% 10.20% 3.35% 13.86% 16.05% Fully diluted tangible book value per share2 $20.39 $21.85 $22.82 $21.96 $25.55 $26.75 Net interest income $54,364 $56,326 $53,761 $54,835 $67,886 $19,510 Pre-tax, pre-provision net revenue2 $26,470 $24,593 $23,379 $14,907 $33,803 $10,543 Net income $13,830 $17,433 $18,216 $5,904 $26,586 $8,212 EPS (fully diluted) $1.78 $2.21 $2.31 $0.75 $3.36 $1.04 1 1 Values are based on reported earnings / performance, which were impacted primarily as a result of the Tax Cut and Jobs Act passed in December 2017 along with several other smaller items. Please refer to BWFG’s 4Q’17 Earnings Release for further detail 2 A non-GAAP metric Dollars in thousands, except per share data

27 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Name Years Experience Selected Professional Biography Christopher Gruseke Chief Executive Officer Director (since 2015) 30+ Mr. Gruseke was a founding investor and director of Bankwell Financial Group’s predecessors, BNC Financial Group, Inc., and The Bank of New Canaan. He brings more than 25 years of capital markets, operations, sales and finance experience to his role at the Company. Most recently, he was a member of the Executive Committee at CRT Capital, a Stamford, Connecticut-based broker/dealer. He also served as Co-Chief Operating Officer and a member of the Board of Greenwich Capital Markets. Mr. Gruseke earned a B.A. from Williams College and an M.S. from the Stern School of Business at New York University. Christine A. Chivily Chief Risk Officer Chief Credit Officer (since 2013) 40+ Ms. Chivily has over 40 years of experience in banking and real estate finance. She previously served in a risk management role for the CRE and C&I loan portfolios at People's United Bank. Her prior experience also includes five years as Director of Freddie Mac’s New England region for multifamily properties and 11 years as Senior Credit Officer at RBS Greenwich Capital. She also has over 10 years of combined experience in lending, loan administration and workouts at other various banking institutions. Ms. Chivily received her B.A. from Mt. Holyoke College. Penko Ivanov Chief Financial Officer (since 2016) 30+ Mr. Ivanov has over 30 years of experience in accounting and finance. His more recent roles include CFO for the U.S. Operations of Doral Bank, where he created a scalable finance organization to support the rapid growth of several business units from infancy to $3 billion in assets, and as CFO of Darien Rowayton Bank. He began his career with Ernst & Young and held various accounting/finance positions at PepsiCo, GE Capital and Bridgewater Associates. His experience includes building, improving and overseeing all finance areas, including Controllership, SOX, Treasury, FP&A, as well as internal and external reporting functions. Mr. Ivanov holds M.B.A. and bachelor degrees in accounting and finance from the University of South Florida and is a CPA. He is also Six Sigma Black Belt certified. Matthew McNeill Chief Banking Officer (since 2020) 20+ Mr. McNeill has more than 20 years of experience in Commercial Banking. He most recently served as Head of Commercial Lending at Metropolitan Commercial Bank. During his 8 years at Metropolitan Commercial Bank the bank grew its lending assets from $400 million to over $3 billion. Mr. McNeill has additionally held lending roles at HSBC Bank US and Banco Santander. Mr. McNeill has also served as Managing Partner at American Real Estate Lending; a Commercial Real Estate finance company. Laura J. Waitz Chief Operating Officer (since 2017) 35+ Ms. Waitz has over 35 years of experience for various businesses and previously was Senior Managing Director, Global Head of Human Resources at The Blackstone Group. She also served as Managing Director and Global Head of Compensation at Citi Alternative Investments and as Head of Compensation (Americas) for Deutsche Bank. Prior to that she served as Global Compensation Manager for private equity and investment banks. Ms. Waitz received her B.S. from Penn State University. Experienced Leadership Team

BWFG | LISTED | NASDAQ Thank You & Questions


Connecticut	001-36448	20-8251355
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, no par value per share	BWFG	NASDAQ Global Market


Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			☐


Item 2.02			Results of Operations and Financial Condition

			On April 27, 2022, Bankwell Financial Group, Inc., the holding company for Bankwell Bank, issued a press release describing its results of operations for the period ended March 31, 2022. A copy of the press release is included as Exhibit 99.1 to this current report on Form 8-K and is incorporated herein by reference.

			The information furnished under this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that section. The information shall not be deemed incorporated by reference into any other filing with the Securities and Exchange Commission made by the Company, regardless of any general incorporation language in such filing.

Item 7.01			Regulation FD Disclosure

			On April 27, 2022, Bankwell Financial Group, Inc., the holding company for Bankwell Bank, issued slide presentation material, which includes among other things, a review of financial results and trends through the period ended March 31, 2022. A copy of the material will also be available on the Company’s website, http://investor.mybankwell.com/CorporateProfile. A copy of the Presentation Material is included as Exhibit 99.2 to this current report on Form 8-K and is incorporated herein by reference.

			The information furnished under this Item 7.01, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that section. The information shall not be deemed incorporated by reference into any other filing with the Securities and Exchange Commission made by the Company, regardless of any general incorporation language in such filing.

Item 8.01			Other Events

			On April 27, 2022, Bankwell Financial Group, Inc., parent company of Bankwell Bank, announced its Board of Directors has voted to pay a quarterly dividend in the amount of $0.20 per share on May 23, 2022 to all shareholders of record as of May 13, 2022.

Item 9.01			Financial Statements and Exhibits
(a)			Not applicable.
(b)			Not applicable.
(c)			Not applicable.
(d)			Exhibits.


Exhibit Number			Description

99.1			Press Release Dated April 27, 2022
99.2			Presentation Materials
104			Cover Page Interactive Data File (embedded within the Inline XBRL document)


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			BANKWELL FINANCIAL GROUP, INC.
			Registrant



April 27, 2022			By: /s/ Penko K. Ivanov
			Penko K. Ivanov
			Executive Vice President
			and Chief Financial Officer