8-K
Bankwell Financial Group, Inc. (BWFG)
e
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 28, 2025
Bankwell Financial Group, Inc.
(Exact name of registrant as specified in its charter)
| Connecticut | 001-36448 | 20-8251355 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
258 Elm Street
New Canaan, Connecticut 06840
(203) 652-0166
(Address of Principal Executive Officers and Telephone Number)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | 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)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which<br>Registered |
|---|---|---|
| Common Stock, no par value per<br><br>share | BWFG | NASDAQ Global Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
| 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 July 28, 2025, Bankwell Financial Group, Inc., the holding company for Bankwell Bank, issued a press release describing its results of operations for the period ended June 30, 2025.<br><br><br><br>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 July 28, 2025, 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 June 30, 2025. A copy of the material will also be available on the Company’s website, https://investor.mybankwell.com/events-and-presentations/<br><br><br><br>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 | |||
| Quarterly Dividend Announcement<br><br><br><br>On July 28, 2025, Bankwell Financial Group, Inc. (the Company), parent company of Bankwell Bank, announced that on July 28, 2025, its Board of Directors voted to pay a quarterly dividend in the amount of $0.20 per share on August 22, 2025 to all shareholders of record as of August 11, 2025. | ||||
| 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 July 28, 2025 | |||
| 99.2 | Presentation Materials | |||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | 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 | ||||
| July 28, 2025 | By: /s/ Courtney E. Sacchetti | |||
| Courtney E. Sacchetti | ||||
| Executive Vice President | ||||
| and Chief Financial Officer |
Document
BANKWELL FINANCIAL GROUP REPORTS OPERATING RESULTS FOR THE SECOND QUARTER, DECLARES THIRD QUARTER DIVIDEND
New Canaan, CT – July 28, 2025 – Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $9.1 million, or $1.15 per share for the second quarter of 2025, versus $6.9 million, or $0.87 per share, for the first quarter of 2025. The Company's Board of Directors declared a $0.20 per share cash dividend, payable August 22, 2025 to shareholders of record on August 11, 2025.
Discussion of Outlook; Bankwell Financial Group Chief Executive Officer, Christopher R. Gruseke:
"Our strong second quarter reflects an acceleration of positive trends which have been building over the past year. Notably, our net interest margin increased to 3.10% as a result of our improved funding costs. Loan originations accelerated in the quarter, resulting in $24 million net loan growth, which includes another robust quarter of SBA originations. Having already made the appropriate investments in risk, operations, and technology, the SBA business is on a path to achieve further scale and profitability. Year to date, it has contributed $1.5 million in non-interest income. The combined results of our efforts have increased the Company’s return on average assets to 1.14% this quarter and we expect continued improvement in profitability as the year progresses.
As we continue to improve the Company’s funding with higher quality deposits, we have now welcomed a total of five new deposit-focused private banking teams the year, and we anticipate their contributions will boost deposit growth later this year, with greater impact in 2026.
In light of this positive momentum, we are updating our 2025 guidance, to grow net interest income to $97 – $98 million. We reiterate our guidance of $7 - $8 million in noninterest income. We are increasing our noninterest expense guidance to $58 - $59 million, primarily a result of our investments in people. Despite the modestly higher run rate in operating expenses, we expect to see continued improvement to the Company’s efficiency ratio in the quarters ahead."
Key Points for Second Quarter and Bankwell’s Outlook
NIM Expansion on Improved Deposit Costs.
•Reported net interest margin was 3.10%, up 29 basis points from the first quarter of 2025, with reduced deposit costs on both time and non-maturity deposits contributing meaningfully to the linked-quarter expansion. Second quarter cost of deposits of 3.40% improved 20 basis points to linked quarter, with a June 2025 "exit" rate of 3.28%.
•During the first half of 2025, approximately $745 million of time deposits repriced approximately 80 basis points lower. Furthermore, rate cuts on approximately $1.0 billion of non-maturity interest-bearing deposits yielded a 23 basis point reduction in the same time period.
Advancing Key Strategic Priorities.
•SBA loan sale gains increased to $1.1 million for the quarter ended June 30, 2025, compared to $0.4 million in the first quarter of 2025. The SBA lending vertical delivered $11.8 million in originations during the quarter ended June 30, 2025, with continued growth expected for the remainder of 2025.
•The Company continues to invest in its deposit gathering capabilities, with the addition of five deposit teams in the New York Metro area; two teams added in April were previously disclosed, one team added after June 30, 2025.
•For the quarter ended June 30, 2025, the Company realized an efficiency ratio of 56.1%, down from 59.9% for the quarter ended March 31, 2025. Investments in strategic priorities continue to be balanced with revenue generation and improved efficiency.
Improving Credit.
•As of June 30, 2025, nonperforming assets as a percentage of total assets improved to 0.78%, compared to 0.83% as of March 31, 2025. Of the 0.78%, 0.17% is guaranteed by the SBA.
•ACL-loans as a % of nonperforming loans increased to 122.5%, compared to 111.8% as of March 31, 2025.
Second Quarter 2025 Financial Highlights and Key Performance Indicators (KPIs):
| June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 | September 30,<br>2024 | June 30,<br>2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on average assets(1)(6) | 1.14 | % | 0.86 | % | 0.37 | % | 0.24 | % | 0.14 | % | |||||
| Pre-tax, pre-provision net revenue return on average assets(1)(6) | 1.43 | % | 1.18 | % | 1.13 | % | 1.22 | % | 1.10 | % | |||||
| Return on average shareholders' equity(1)(6) | 12.98 | % | 10.16 | % | 4.35 | % | 2.83 | % | 1.65 | % | |||||
| Net interest margin(1)(6) | 3.10 | % | 2.81 | % | 2.60 | % | 2.72 | % | 2.75 | % | |||||
| Efficiency Ratio(1)(3) | 56.1 | % | 59.9 | % | 56.4 | % | 58.8 | % | 45.6 | % | |||||
| Noninterest expense to average assets(1)(6) | 1.83 | % | 1.76 | % | 1.56 | % | 1.62 | % | 1.55 | % | |||||
| Net loan charge-offs as a percentage of average loans(1)(6) | 0.00 | % | 0.00 | % | 0.11 | % | 0.56 | % | 0.01 | % | |||||
| Dividend payout(1)(4) | 17.39 | % | 22.99 | % | 54.05 | % | 82.30 | % | 142.86 | % | |||||
| Fully diluted tangible book value per common share(1)(2) | $ | 35.65 | $ | 34.56 | $ | 34.09 | $ | 33.76 | $ | 33.61 | |||||
| Total capital to risk-weighted assets(1)(5) | 13.28 | % | 13.22 | % | 12.70 | % | 12.83 | % | 12.98 | % | |||||
| Total common equity tier 1 capital to risk-weighted assets(1)(5) | 12.20 | % | 12.11 | % | 11.64 | % | 11.80 | % | 11.73 | % | |||||
| Tier I Capital to Average Assets(1)(5) | 10.57 | % | 10.13 | % | 10.09 | % | 10.24 | % | 10.17 | % | |||||
| Tangible common equity to tangible assets(1)(2) | 8.68 | % | 8.57 | % | 8.20 | % | 8.40 | % | 8.42 | % | |||||
| Earnings per common share - diluted | $ | 1.15 | $ | 0.87 | $ | 0.37 | $ | 0.24 | $ | 0.14 | |||||
| Common shares issued and outstanding | 7,873,387 | 7,888,013 | 7,859,873 | 7,858,573 | 7,866,499 |
(1) Non-GAAP Financial Measure; refer to the "Non-GAAP Financial Measures" section of this document for additional detail.
(2) Refer to the "Reconciliation of GAAP to Non-GAAP Measures" section of this document for additional detail.
(3) 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.
(4) The dividend payout ratio is calculated by dividing dividends per share by earnings per share.
(5) Represents Bank ratios. Current period capital ratios are preliminary subject to finalization of the FDIC Call Report.
(6) Return on average assets is calculated by dividing annualized net income by average assets. Pre-tax, pre-provision net revenue return on average is calculated by dividing PPNR (using the "Pre-Tax, Pre-Provision Net Revenue (PPNR) section of this document by average assets. Return on average shareholders' equity is calculated by dividing annualized net income by average shareholders' equity. Net interest margin is calculated by dividing average annualized net interest income by average total earning assets. Noninterest expense to average assets is calculated by dividing annualized noninterest expense by average total assets. Net loan charge-offs as a percentage of average loans is calculated by dividing net loan (charge offs) recoveries by average total loans.
Pre-Tax, Pre-Provision Net Revenue(1) ("PPNR")
PPNR for the second quarter ended June 30, 2025 was $11.4 million, an increase of 20.9% from $9.4 million recognized for the first quarter ended March 31, 2025.
| For the Quarter Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 | September 30,<br>2024 | June 30,<br>2024 | |||||
| Net interest income | $ | 23,936 | $ | 22,066 | $ | 20,199 | $ | 20,717 | $ | 21,219 |
| Total noninterest income | 2,012 | 1,505 | 964 | 1,156 | 683 | |||||
| Total revenues | 25,948 | 23,571 | 21,163 | 21,873 | 21,902 | |||||
| Total noninterest expense | 14,546 | 14,141 | 12,644 | 12,865 | 12,245 | |||||
| PPNR | $ | 11,402 | $ | 9,430 | $ | 8,519 | $ | 9,008 | $ | 9,657 |
(1) Non-GAAP Financial Measure; refer to the "Non-GAAP Financial Measures" section of this document for additional detail.
•Revenues (net interest income plus noninterest income) for the quarter ended June 30, 2025 were $25.9 million, versus $23.6 million from the previous quarter. The increase in revenues for the quarter ended June 30, 2025 was mainly attributable to reduced funding costs. Additional favorability for the quarter ended June 30, 2025 is attributed to growth in gains on sale of SBA loans.
•The net interest margin (fully taxable equivalent basis) for the quarters ended June 30, 2025 and March 31, 2025 was 3.10% and 2.81%, respectively. The increase in the net interest margin was mainly due to reduced funding costs.
•Total non-interest expense of $14.5 million increased 2.9% compared to the first quarter, which was mainly driven by increase in salaries and employee benefits.
Allowance for Credit Losses - Loans ("ACL-Loans")
The ACL-Loans was $29.3 million as of June 30, 2025 compared to $29.5 million as of March 31, 2025. The ACL-Loans as a percentage of total loans was 1.10% as of June 30, 2025 compared to 1.11% as of March 31, 2025.
The credit for credit losses - loans was $0.3 million for the quarter ended June 30, 2025. Total nonperforming loans decreased $2.5 million to $23.9 million as of June 30, 2025 when compared to the previous quarter. Nonperforming assets as a percentage of total assets decreased to 0.78% as of June 30, 2025 compared to the previous quarter's ratio of 0.83%.
BANKWELL FINANCIAL GROUP, INC.
ASSET QUALITY (unaudited)
(Dollars in thousands)
| For the Quarter Ended | |||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 | September 30,<br>2024 | June 30,<br>2024 | |||||||||||||||||||||||
| ACL-Loans: | |||||||||||||||||||||||||||
| Balance at beginning of period | $ | 29,485 | $ | 29,007 | $ | 27,752 | $ | 36,083 | $ | 27,991 | |||||||||||||||||
| Charge-offs: | |||||||||||||||||||||||||||
| Residential real estate | — | — | — | — | (9) | ||||||||||||||||||||||
| Commercial real estate | — | (67) | (1,100) | (8,184) | (522) | ||||||||||||||||||||||
| Commercial business | (15) | — | (703) | (7,010) | — | ||||||||||||||||||||||
| Consumer | (5) | (33) | (5) | (17) | (12) | ||||||||||||||||||||||
| Construction | — | — | (1,155) | (616) | — | ||||||||||||||||||||||
| Total charge-offs | (20) | (100) | (2,963) | (15,827) | (543) | ||||||||||||||||||||||
| Recoveries: | |||||||||||||||||||||||||||
| Residential real estate | — | — | — | — | 141 | ||||||||||||||||||||||
| Commercial real estate | — | — | — | 1,013 | 113 | ||||||||||||||||||||||
| Commercial business | 112 | 4 | 4 | (34) | — | ||||||||||||||||||||||
| Consumer | 10 | 36 | 5 | 1 | 13 | ||||||||||||||||||||||
| Construction | — | — | — | — | — | ||||||||||||||||||||||
| Total recoveries | 122 | 40 | 9 | 980 | 267 | ||||||||||||||||||||||
| Net loan (charge-offs) recoveries | 102 | (60) | (2,954) | (14,847) | (276) | ||||||||||||||||||||||
| (Credit) provision for credit losses - loans | (331) | 538 | 4,209 | 6,516 | 8,368 | ||||||||||||||||||||||
| Balance at end of period | $ | 29,256 | $ | 29,485 | $ | 29,007 | $ | 27,752 | $ | 36,083 | As of | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||
| June 30,<br>2025 | March 31, <br>2025 | December 31,<br>2024 | September 30,<br>2024 | June 30,<br>2024 | |||||||||||||||||||||||
| Asset quality: | |||||||||||||||||||||||||||
| Nonaccrual loans | |||||||||||||||||||||||||||
| Residential real estate | $ | 617 | $ | 811 | $ | 791 | $ | 1,316 | $ | 1,339 | |||||||||||||||||
| Commercial real estate | 16,387 | 17,946 | 44,814 | 46,360 | 28,088 | ||||||||||||||||||||||
| Commercial business | 6,871 | 7,626 | 7,672 | 9,101 | 17,396 | ||||||||||||||||||||||
| Construction | — | — | — | 8,766 | 9,382 | ||||||||||||||||||||||
| Consumer | — | — | — | — | — | ||||||||||||||||||||||
| Total nonaccrual loans | 23,875 | 26,383 | 53,277 | 65,543 | 56,205 | ||||||||||||||||||||||
| Other real estate owned | 1,284 | — | 8,299 | — | — | ||||||||||||||||||||||
| Total nonperforming assets | $ | 25,159 | $ | 26,383 | $ | 61,576 | $ | 65,543 | $ | 56,205 | |||||||||||||||||
| Nonperforming loans as a % of total loans | 0.89 | % | 1.00 | % | 1.97 | % | 2.42 | % | 2.12 | % | |||||||||||||||||
| Nonperforming assets as a % of total assets | 0.78 | % | 0.83 | % | 1.88 | % | 2.07 | % | 1.79 | % | |||||||||||||||||
| ACL-loans as a % of total loans | 1.10 | % | 1.11 | % | 1.07 | % | 1.07 | % | 1.36 | % | |||||||||||||||||
| ACL-loans as a % of nonperforming loans | 122.54 | % | 111.76 | % | 54.44 | % | 44.26 | % | 64.20 | % | |||||||||||||||||
| Total past due loans to total loans | 0.91 | % | 1.08 | % | 1.63 | % | 2.40 | % | 0.84 | % |
Financial Condition & Capital
Assets totaled $3.2 billion at June 30, 2025, a decrease of $31.9 million, or 1.0% compared to December 31, 2024. Gross loans totaled $2.7 billion at June 30, 2025, a decrease of $36.9 million, or 1.4% compared to December 31, 2024. Deposits totaled $2.8 billion at June 30, 2025, a decrease of $28.3 million, or 1.0% compared to December 31, 2024. Brokered deposits have decreased $81.2 million or 11.5%, when compared to December 31, 2024.
| Period End Loan Composition | December 31, <br>2024 | June 30,<br>2024 | Current YTD<br>% Change | Year over Year<br>% Change | |||||
|---|---|---|---|---|---|---|---|---|---|
| Residential Real Estate | 34,978 | $ | 42,766 | $ | 47,875 | (18.2) | % | (26.9) | % |
| Commercial Real Estate(1) | 1,899,134 | 1,912,701 | (5.1) | (5.8) | |||||
| Construction | 173,555 | 150,259 | 17.4 | 35.6 | |||||
| Total Real Estate Loans | 2,115,455 | 2,110,835 | (3.5) | (3.3) | |||||
| Commercial Business | 515,125 | 503,444 | 8.6 | 11.1 | |||||
| Consumer | 75,308 | 42,906 | (8.6) | 60.4 | |||||
| Total Loans | 2,668,982 | $ | 2,705,888 | $ | 2,657,185 | (1.4) | % | 0.4 | % |
| (1) Includes owner occupied commercial real estate of 0.7 billion at June 30, 2025, December 31, 2024, and June 30, 2024, respectively. |
All values are in US Dollars.
| Period End Deposit Composition | June 30, <br>2025 | December 31, <br>2024 | June 30,<br>2024 | Current YTD<br>% Change | Year over Year <br>% Change | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Noninterest bearing demand | $ | 397,195 | $ | 321,875 | $ | 328,475 | 23.4 | % | 20.9 | % |
| NOW | 118,019 | 105,090 | 122,112 | 12.3 | (3.4) | |||||
| Money Market | 875,457 | 899,413 | 825,599 | (2.7) | 6.0 | |||||
| Savings | 91,612 | 90,220 | 91,870 | 1.5 | (0.3) | |||||
| Time | 1,276,998 | 1,370,972 | 1,294,319 | (6.9) | (1.3) | |||||
| Total Deposits | $ | 2,759,281 | $ | 2,787,570 | $ | 2,662,375 | (1.0) | % | 3.6 | % |
Shareholders’ equity totaled $283.3 million as of June 30, 2025, an increase of $12.8 million compared to December 31, 2024, primarily a result of year to date net income of $16.0 million. The increase was partially offset by dividends paid of $3.1 million and share repurchases of $1.3 million.
As of June 30, 2025, the Bank's regulatory capital ratios were all above 'well capitalized' values, with total risk-based capital, common-equity tier 1 capital and leverage ratios at 13.28%, 12.20%, and 10.57%, respectively. The Company repurchased 14,626 shares at a weighted average price of $28.86 per share during the quarter ended June 30, 2025.
We recommend reading this earnings release in conjunction with the Second Quarter 2025 Investor Presentation, located at https://investor.mybankwell.com/events-and-presentations/ and included as an exhibit to our July 28, 2025 Current Report on Form 8-K.
Conference Call
Bankwell will host a conference call to discuss the Company’s financial results and business outlook on July 28, 2025, at 11:00 a.m. E.T. The call will be accessible by telephone and webcast using https://investor.mybankwell.com/events-and-presentations/. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event.
About Bankwell Financial Group
Bankwell Financial Group, Inc. is the holding company for Bankwell Bank ("Bankwell"), a full-service commercial bank headquartered in New Canaan, CT. Bankwell offers its customers unmatched accessibility, expertise, and responsiveness through a range of commercial financing products including working capital lines of credit, SBA loans, acquisition loans, and commercial mortgages as well as treasury management and deposit services.
For more information about this press release, interested parties may contact Christopher R. Gruseke, Chief Executive Officer or Courtney E. Sacchetti, Executive Vice President and Chief Financial Officer of Bankwell Financial Group at (203) 652-0166 or at ir@mybankwell.com.
For more information, visit www.mybankwell.com.
This press release may contain certain forward-looking statements about the Company. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the banking industry or securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and its subsidiaries are engaged.
Non-GAAP Financial Measures
In addition to evaluating the Company's financial performance in accordance with U.S. generally accepted accounting principles ("GAAP"), management may evaluate certain non-GAAP financial measures, such as the efficiency ratio. A computation and reconciliation of certain non-GAAP financial measures used for these purposes is contained in the accompanying Reconciliation of GAAP to Non-GAAP Measures tables. We believe that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends and financial position. For example, the Company believes that the efficiency ratio is useful in the assessment of financial performance, including noninterest expense control. The Company believes that tangible common equity, tangible assets, tangible common equity to tangible assets, tangible common shareholders' equity, fully diluted tangible book value per common share, operating revenue, efficiency ratio, noninterest expense to average assets, average tangible common equity, annualized return on average tangible common equity, return on average assets, return on average shareholders' equity, pre-tax, pre-provision net revenue, net interest margin, net loan charge-offs as a percentage of average loans, pre-tax, pre-provision net revenue on average assets, and the dividend payout ratio are useful to evaluate the relative strength of the Company's performance and capital position. We utilize these measures for internal planning and forecasting purposes. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure.
BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED BALANCE SHEETS (unaudited)
(Dollars in thousands)
| June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 | September 30,<br>2024 | June 30,<br>2024 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| ASSETS | ||||||||||
| Cash and due from banks | $ | 313,998 | $ | 292,006 | $ | 293,552 | $ | 275,829 | $ | 234,277 |
| Federal funds sold | 8,466 | 12,922 | 13,972 | 15,508 | 17,103 | |||||
| Cash and cash equivalents | 322,464 | 304,928 | 307,524 | 291,337 | 251,380 | |||||
| Investment securities | ||||||||||
| Marketable equity securities, at fair value | 2,188 | 2,164 | 2,118 | 2,148 | 2,079 | |||||
| Available for sale investment securities, at fair value | 103,930 | 97,321 | 107,428 | 108,866 | 107,635 | |||||
| Held to maturity investment securities, at amortized cost | 36,434 | 36,478 | 36,553 | 34,886 | 28,286 | |||||
| Total investment securities | 142,552 | 135,963 | 146,099 | 145,900 | 138,000 | |||||
| Loans receivable (net of ACL-Loans of $29,256, $29,485, $29,007, $27,752, and $36,083, at June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively) | 2,635,742 | 2,611,495 | 2,672,959 | 2,591,551 | 2,616,691 | |||||
| Accrued interest receivable | 14,741 | 15,409 | 14,535 | 14,714 | 14,675 | |||||
| Federal Home Loan Bank stock, at cost | 5,051 | 3,583 | 5,655 | 5,655 | 5,655 | |||||
| Premises and equipment, net | 23,020 | 22,978 | 23,856 | 24,780 | 25,599 | |||||
| Bank-owned life insurance | 53,488 | 53,136 | 52,791 | 52,443 | 52,097 | |||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | |||||
| Deferred income taxes, net | 9,684 | 9,551 | 9,742 | 9,300 | 11,345 | |||||
| Other real estate owned | 1,284 | — | 8,299 | — | — | |||||
| Other assets | 25,978 | 24,261 | 24,427 | 22,811 | 23,623 | |||||
| Total assets | $ | 3,236,593 | $ | 3,183,893 | $ | 3,268,476 | $ | 3,161,080 | $ | 3,141,654 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
| Liabilities | ||||||||||
| Deposits | ||||||||||
| Noninterest bearing deposits | $ | 397,195 | $ | 349,525 | $ | 321,875 | $ | 295,552 | $ | 328,475 |
| Interest bearing deposits | 2,362,086 | 2,400,920 | 2,465,695 | 2,392,619 | 2,333,900 | |||||
| Total deposits | 2,759,281 | 2,750,445 | 2,787,570 | 2,688,171 | 2,662,375 | |||||
| Advances from the Federal Home Loan Bank | 75,000 | 40,000 | 90,000 | 90,000 | 90,000 | |||||
| Subordinated debentures | 69,574 | 69,513 | 69,451 | 69,389 | 69,328 | |||||
| Accrued expenses and other liabilities | 49,448 | 48,721 | 50,935 | 45,594 | 52,975 | |||||
| Total liabilities | 2,953,303 | 2,908,679 | 2,997,956 | 2,893,154 | 2,874,678 | |||||
| Shareholders’ equity | ||||||||||
| Common stock, no par value | 118,698 | 118,439 | 119,108 | 118,429 | 118,037 | |||||
| Retained earnings | 165,495 | 157,971 | 152,656 | 151,257 | 150,895 | |||||
| Accumulated other comprehensive (loss) | (903) | (1,196) | (1,244) | (1,760) | (1,956) | |||||
| Total shareholders’ equity | 283,290 | 275,214 | 270,520 | 267,926 | 266,976 | |||||
| Total liabilities and shareholders’ equity | $ | 3,236,593 | $ | 3,183,893 | $ | 3,268,476 | $ | 3,161,080 | $ | 3,141,654 |
BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(Dollars in thousands, except share data)
| For the Quarter Ended | For the Six-Months Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 | September 30,<br>2024 | June 30,<br>2024 | June 30,<br>2025 | June 30,<br>2024 | |||||||||
| Interest and dividend income | |||||||||||||||
| Interest and fees on loans | $ | 44,128 | $ | 43,475 | $ | 42,851 | $ | 43,596 | $ | 43,060 | $ | 87,603 | $ | 86,385 | |
| Interest and dividends on securities | 1,478 | 1,445 | 1,482 | 1,390 | 1,190 | 2,923 | 2,320 | ||||||||
| Interest on cash and cash equivalents | 3,043 | 3,557 | 3,510 | 3,205 | 3,429 | 6,600 | 7,255 | ||||||||
| Total interest and dividend income | 48,649 | 48,477 | 47,843 | 48,191 | 47,679 | 97,126 | 95,960 | ||||||||
| Interest expense | |||||||||||||||
| Interest expense on deposits | 23,083 | 24,772 | 25,640 | 25,579 | 24,677 | 47,855 | 50,039 | ||||||||
| Interest expense on borrowings | 1,630 | 1,639 | 2,004 | 1,895 | 1,783 | 3,269 | 3,555 | ||||||||
| Total interest expense | 24,713 | 26,411 | 27,644 | 27,474 | 26,460 | 51,124 | 53,594 | ||||||||
| Net interest income | 23,936 | 22,066 | 20,199 | 20,717 | 21,219 | 46,002 | 42,366 | ||||||||
| (Credit) provision for credit losses | (411) | 463 | 4,458 | 6,296 | 8,183 | 52 | 11,866 | ||||||||
| Net interest income after (credit) provision for credit losses | 24,347 | 21,603 | 15,741 | 14,421 | 13,036 | 45,950 | 30,500 | ||||||||
| Noninterest income | |||||||||||||||
| Bank owned life insurance | 352 | 344 | 348 | 346 | 333 | 696 | 662 | ||||||||
| Service charges and fees | 674 | 602 | 589 | 575 | 495 | 1,276 | 799 | ||||||||
| Gains and fees from sales of loans | 1,080 | 442 | 24 | 133 | 45 | 1,522 | 366 | ||||||||
| Other | (94) | 117 | 3 | 102 | (190) | 23 | (229) | ||||||||
| Total noninterest income | 2,012 | 1,505 | 964 | 1,156 | 683 | 3,517 | 1,598 | ||||||||
| Noninterest expense | |||||||||||||||
| Salaries and employee benefits | 7,521 | 7,052 | 5,056 | 6,223 | 6,176 | 14,573 | 12,467 | ||||||||
| Occupancy and equipment | 2,505 | 2,575 | 2,600 | 2,334 | 2,238 | 5,080 | 4,561 | ||||||||
| Professional services | 1,632 | 1,529 | 1,286 | 1,142 | 989 | 3,161 | 2,054 | ||||||||
| Data processing | 712 | 885 | 905 | 851 | 755 | 1,597 | 1,495 | ||||||||
| Director fees | 333 | 348 | 342 | 292 | 306 | 681 | 1,206 | ||||||||
| FDIC insurance | 684 | 779 | 862 | 853 | 705 | 1,463 | 1,635 | ||||||||
| Marketing | 218 | 142 | 175 | 73 | 90 | 360 | 203 | ||||||||
| Other | 941 | 831 | 1,418 | 1,097 | 986 | 1,772 | 1,921 | ||||||||
| Total noninterest expense | 14,546 | 14,141 | 12,644 | 12,865 | 12,245 | 28,687 | 25,542 | ||||||||
| Income before income tax expense | 11,813 | 8,967 | 4,061 | 2,712 | 1,474 | 20,780 | 6,556 | ||||||||
| Income tax expense | 2,725 | 2,079 | 1,098 | 786 | 356 | 4,804 | 1,675 | ||||||||
| Net income | $ | 9,088 | $ | 6,888 | $ | 2,963 | $ | 1,926 | $ | 1,118 | $ | 15,976 | $ | 4,881 | |
| Earnings Per Common Share: | |||||||||||||||
| Basic | $ | 1.16 | $ | 0.88 | $ | 0.37 | $ | 0.24 | $ | 0.14 | $ | 2.04 | $ | 0.62 | |
| Diluted | $ | 1.15 | $ | 0.87 | $ | 0.37 | $ | 0.24 | $ | 0.14 | $ | 2.03 | $ | 0.62 | |
| Weighted Average Common Shares Outstanding: | |||||||||||||||
| Basic | 7,777,469 | 7,670,224 | 7,713,970 | 7,715,040 | 7,747,675 | 7,724,143 | 7,705,598 | ||||||||
| Diluted | 7,819,829 | 7,740,521 | 7,727,412 | 7,720,895 | 7,723,888 | 7,795,820 | 7,721,880 | ||||||||
| Dividends per common share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.40 | $ | 0.40 |
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 | June 30, <br>2025 | March 31, <br>2025 | December 31,<br>2024 | September 30,<br>2024 | June 30,<br>2024 | ||||||||||||||||||||||
| Total Equity | $ | 283,290 | $ | 275,214 | $ | 270,520 | $ | 267,926 | $ | 266,976 | |||||||||||||||||
| Less: | |||||||||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||||||||||
| Other intangibles | — | — | — | — | — | ||||||||||||||||||||||
| Tangible Common Equity | $ | 280,701 | $ | 272,625 | $ | 267,931 | $ | 265,337 | $ | 264,387 | |||||||||||||||||
| Total Assets | $ | 3,236,593 | $ | 3,183,893 | $ | 3,268,476 | $ | 3,161,080 | $ | 3,141,654 | |||||||||||||||||
| Less: | |||||||||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||||||||||
| Other intangibles | — | — | — | — | — | ||||||||||||||||||||||
| Tangible Assets | $ | 3,234,004 | $ | 3,181,304 | $ | 3,265,887 | $ | 3,158,491 | $ | 3,139,065 | |||||||||||||||||
| Tangible Common Equity to Tangible Assets | 8.68 | % | 8.57 | % | 8.20 | % | 8.40 | % | 8.42 | % | As of | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||||||||
| Computation of Fully Diluted Tangible Book Value per Common Share | June 30, <br>2025 | March 31, <br>2025 | December 31,<br>2024 | September 30,<br>2024 | June 30,<br>2024 | ||||||||||||||||||||||
| Total shareholders' equity | $ | 283,290 | $ | 275,214 | $ | 270,520 | $ | 267,926 | $ | 266,976 | |||||||||||||||||
| Less: | |||||||||||||||||||||||||||
| Preferred stock | — | — | — | — | — | ||||||||||||||||||||||
| Common shareholders' equity | $ | 283,290 | $ | 275,214 | $ | 270,520 | $ | 267,926 | $ | 266,976 | |||||||||||||||||
| Less: | |||||||||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||||||||||
| Other intangibles | — | — | — | — | — | ||||||||||||||||||||||
| Tangible common shareholders' equity | $ | 280,701 | $ | 272,625 | $ | 267,931 | $ | 265,337 | $ | 264,387 | |||||||||||||||||
| Common shares issued and outstanding | 7,873,387 | 7,888,013 | 7,859,873 | 7,858,573 | 7,866,499 | ||||||||||||||||||||||
| Fully Diluted Tangible Book Value per Common Share | $ | 35.65 | $ | 34.56 | $ | 34.09 | $ | 33.76 | $ | 33.61 |
BANKWELL FINANCIAL GROUP, INC.
EARNINGS PER SHARE ("EPS") (unaudited)
(Dollars in thousands, except share data)
| For the Quarter Ended June 30, | For the Six Months Ended June 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||
| (In thousands, except per share data) | ||||||||
| Net income | $ | 9,088 | $ | 1,118 | $ | 15,976 | $ | 4,881 |
| Dividends to participating securities(1) | 26 | (40) | 53 | (79) | ||||
| Undistributed earnings allocated to participating securities(1) | (125) | 14 | (241) | (52) | ||||
| Net income for earnings per share calculation | 8,989 | 1,092 | 15,788 | 4,750 | ||||
| Weighted average shares outstanding, basic | 7,777,469 | 7,747,675 | 7,724,143 | 7,705,598 | ||||
| Effect of dilutive equity-based awards(2) | 42,359 | (24,787) | 71,677 | 16,282 | ||||
| Weighted average shares outstanding, diluted | 7,819,828 | 7,722,888 | 7,795,820 | 7,721,880 | ||||
| Net earnings per common share: | ||||||||
| Basic earnings per common share | $ | 1.16 | $ | 0.14 | $ | 2.04 | $ | 0.62 |
| Diluted earnings per common share | $ | 1.15 | $ | 0.14 | $ | 2.03 | $ | 0.62 |
(1) Represents dividends paid and undistributed earnings allocated to unvested stock-based awards that contain non-forfeitable rights to dividends.
(2) Represents the effect of the assumed exercise of stock options and the vesting of restricted shares, as applicable, utilizing the treasury stock method.
BANKWELL FINANCIAL GROUP, INC.
NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - QTD (unaudited)
(Dollars in thousands)
| For the Quarter Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30, 2025 | June 30, 2024 | |||||||||||
| Average<br>Balance | Interest | Yield/<br><br>Rate (4) | Average<br>Balance | Interest | Yield/<br><br>Rate (4) | |||||||
| Assets: | ||||||||||||
| Cash and Fed funds sold | $ | 296,054 | $ | 3,043 | 4.12 | % | $ | 273,301 | $ | 3,429 | 5.05 | % |
| Securities(1) | 149,475 | 1,535 | 4.11 | 137,360 | 1,139 | 3.32 | ||||||
| Loans: | ||||||||||||
| Commercial real estate | 1,788,354 | 27,427 | 6.07 | 1,901,189 | 27,654 | 5.75 | ||||||
| Residential real estate | 37,549 | 597 | 6.36 | 49,046 | 772 | 6.30 | ||||||
| Construction | 196,373 | 3,851 | 7.76 | 159,184 | 2,871 | 7.14 | ||||||
| Commercial business | 558,237 | 11,195 | 7.93 | 523,382 | 11,028 | 8.34 | ||||||
| Consumer | 72,137 | 1,058 | 5.88 | 42,335 | 735 | 6.98 | ||||||
| Total loans | 2,652,650 | 44,128 | 6.58 | 2,675,136 | 43,060 | 6.37 | ||||||
| Federal Home Loan Bank stock | 5,000 | 85 | 6.85 | 5,655 | 118 | 8.47 | ||||||
| Total earning assets | 3,103,179 | $ | 48,791 | 6.22 | % | 3,091,452 | $ | 47,746 | 6.11 | % | ||
| Other assets | 88,967 | 95,453 | ||||||||||
| Total assets | $ | 3,192,146 | $ | 3,186,905 | ||||||||
| Liabilities and shareholders' equity: | ||||||||||||
| Interest bearing liabilities: | ||||||||||||
| NOW | $ | 107,818 | $ | 77 | 0.29 | % | $ | 107,310 | $ | 49 | 0.18 | % |
| Money market | 898,777 | 8,579 | 3.83 | 833,489 | 8,552 | 4.13 | ||||||
| Savings | 91,415 | 667 | 2.93 | 90,987 | 688 | 3.04 | ||||||
| Time | 1,273,372 | 13,760 | 4.33 | 1,291,595 | 15,388 | 4.76 | ||||||
| Total interest bearing deposits | 2,371,382 | 23,083 | 3.90 | 2,323,381 | 24,677 | 4.27 | ||||||
| Borrowed Money | 138,380 | 1,629 | 4.72 | 159,288 | 1,783 | 4.50 | ||||||
| Total interest bearing liabilities | 2,509,762 | $ | 24,712 | 3.95 | % | 2,482,669 | $ | 26,460 | 4.29 | % | ||
| Noninterest bearing deposits | 352,623 | 368,516 | ||||||||||
| Other liabilities | 48,956 | 63,177 | ||||||||||
| Total liabilities | 2,911,341 | 2,914,362 | ||||||||||
| Shareholders' equity | 280,805 | 272,543 | ||||||||||
| Total liabilities and shareholders' equity | $ | 3,192,146 | $ | 3,186,905 | ||||||||
| Net interest income(2) | $ | 24,079 | $ | 21,286 | ||||||||
| Interest rate spread | 2.27 | % | 1.82 | % | ||||||||
| Net interest margin(3) | 3.10 | % | 2.75 | % |
(1)Average balances and yields for securities are based on amortized cost.
(2)The adjustment for securities and loans taxable equivalency amounted to $143 thousand and $67 thousand for the quarters ended June 30, 2025 and 2024, 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 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30, 2025 | June 30, 2024 | |||||||||||
| Average<br>Balance | Interest | Yield/<br><br>Rate (4) | Average<br>Balance | Interest | Yield/<br><br>Rate (4) | |||||||
| Assets: | ||||||||||||
| Cash and Fed funds sold | $ | 322,498 | $ | 6,600 | 4.13 | % | $ | 282,981 | $ | 7,255 | 5.16 | % |
| Securities(1) | 150,059 | 3,011 | 4.01 | 136,049 | 2,199 | 3.23 | ||||||
| Loans: | ||||||||||||
| Commercial real estate | 1,818,282 | 55,710 | 6.09 | 1,911,896 | 56,295 | 5.82 | ||||||
| Residential real estate | 39,544 | 1,230 | 6.22 | 49,624 | 1,490 | 6.01 | ||||||
| Construction | 187,674 | 7,320 | 7.76 | 160,080 | 5,844 | 7.22 | ||||||
| Commercial business | 533,310 | 21,204 | 7.91 | 520,188 | 21,314 | 8.10 | ||||||
| Consumer | 76,784 | 2,139 | 5.62 | 41,150 | 1,442 | 7.05 | ||||||
| Total loans | 2,655,594 | 87,603 | 6.56 | 2,682,938 | 86,385 | 6.37 | ||||||
| Federal Home Loan Bank stock | 4,799 | 196 | 8.21 | 5,678 | 239 | 8.49 | ||||||
| Total earning assets | 3,132,950 | $ | 97,410 | 6.18 | % | 3,107,646 | $ | 96,078 | 6.12 | % | ||
| Other assets | 89,353 | 93,179 | ||||||||||
| Total assets | $ | 3,222,303 | $ | 3,200,825 | ||||||||
| Liabilities and shareholders' equity: | ||||||||||||
| Interest bearing liabilities: | ||||||||||||
| NOW | $ | 103,675 | $ | 187 | 0.36 | % | $ | 99,493 | $ | 88 | 0.18 | % |
| Money market | 896,084 | 17,099 | 3.85 | 858,670 | 17,698 | 4.14 | ||||||
| Savings | 89,800 | 1,325 | 2.98 | 91,979 | 1,402 | 3.06 | ||||||
| Time | 1,325,630 | 29,244 | 4.45 | 1,304,332 | 30,851 | 4.76 | ||||||
| Total interest bearing deposits | 2,415,189 | 47,855 | 4.00 | 2,354,474 | 50,039 | 4.27 | ||||||
| Borrowed Money | 136,161 | 3,269 | 4.84 | 159,257 | 3,555 | 4.49 | ||||||
| Total interest bearing liabilities | 2,551,350 | $ | 51,124 | 4.04 | % | 2,513,731 | $ | 53,594 | 4.29 | % | ||
| Noninterest bearing deposits | 343,261 | 352,768 | ||||||||||
| Other liabilities | 49,752 | 62,775 | ||||||||||
| Total liabilities | 2,944,363 | 2,929,274 | ||||||||||
| Shareholders' equity | 277,940 | 271,551 | ||||||||||
| Total liabilities and shareholders' equity | $ | 3,222,303 | $ | 3,200,825 | ||||||||
| Net interest income(2) | $ | 46,286 | $ | 42,484 | ||||||||
| Interest rate spread | 2.14 | % | 1.83 | % | ||||||||
| Net interest margin(3) | 2.95 | % | 2.73 | % |
(1)Average balances and yields for securities are based on amortized cost.
(2)The adjustment for securities and loans taxable equivalency amounted to $285 thousand and $118 thousand for the year ended June 30, 2025 and 2024, 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.
12
a2q2025bwfginvestorprese
July 28, 2025 Second Quarter 2025 Investor Presentation
Forward Looking Statement Important note regarding forward-looking statements: Statements made in this presentation which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management’s plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Such forward-looking statements may be identified by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “estimate,” “should,” “intend,” "target,” “outlook,” “project,” “guidance,” “forecast,” or similar expressions. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements. Factors which may cause actual results to differ materially from those contained in such forward-looking statements include those identified in the Company’s most recent Form 10-K and subsequent Form 10-Qs and other SEC filings, and such factors are incorporated herein by reference. Trademarks: All trademarks, service marks, and trade names referenced in this material are official trademarks and the property of their respective owners. Presentation: Within the charts and tables presented, certain segments, columns and rows may not sum to totals shown due to rounding. Non-GAAP Measures: This presentation includes certain non-GAAP financial measures. These non-GAAP measures are provided in addition to, and not as substitutes for, measures of our financial performance determined in accordance with GAAP. Our calculation of these non-GAAP measures may not be comparable to similarly titled measures of other companies due to potential differences between companies in the method of calculation. As a result, the use of these non-GAAP measures has limitations and should not be considered superior to, in isolation from, or as a substitute for, related GAAP measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found at the end of this presentation. 22
1.14% Return on Average Assets +28 bp growth over LQ 3.10% reported Net Interest Margin, +29 bps LQ expansion on improved funding profile Added four deposit-focused teams in NYC metro during the quarter; one additional team in July 2025 $48 million non-interest bearing deposit growth from existing channels $24 million loan growth on $170 million of funded originations; credit improved, with 0.78% non-performing assets / total assets Non-interest income growth of $0.5 million, or 34%, to LQ driven by $1.1 million gains realized on SBA Loan sales Second Quarter 2025 Highlights 3
Second Quarter 2025 Financial Summary EPS PPNR Loans Deposits Capital • Fully diluted EPS of $1.15, up 32% versus LQ and driven by improving net interest margin and increased non-interest income • PPNR of $11.4 million, or $1.46 per share, increased 21% LQ • Net interest income of $23.9 million benefitted from 20 bps LQ deposit cost reduction • Non-interest income rose 34% LQ, driven by $1.1 million of SBA sales gains in 2Q • Loan balances increased $24 million LQ, on $170 million funded originations • Provision release of $0.4 million, with 0 bps of net charge-offs • NPAs decreased to 78 bps of total assets • Deposit costs of 3.40% improved 20 bps LQ; June 2025 ‘exit’ rate of 3.28% • $48 million growth in non-interest bearing deposits to LQ; $75 million year-to-date • Loan to deposit ratio remains stable at 96.0% • Tangible book value of $35.65, up $1.09 versus LQ and up $2.04versus PYQ • Consolidated CET1 ratio of 10.17%1; Bank Total Capital ratio of 13.28%1 • Repurchased 14,626 shares at a weighted average price of $28.86 per share 1 Estimates, pending FRY9C & FDIC call report filings. 4
Second Quarter 2025 GAAP Results Bankwell Financial Group, Inc. ($ in millions, except per share data) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Net Interest Income $ 23.9 $ 22.1 $ 20.2 $ 20.7 $ 21.2 $ 21.1 $ 22.2 $ 22.7 $ 24.0 (Credit) Provision for Credit Losses (0.4) 0.5 4.5 6.3 8.2 3.7 (1.0) (1.6) 2.6 Total Noninterest Income 2.0 1.5 1.0 1.2 0.7 0.9 1.1 0.8 1.4 Total Revenue 25.9 23.6 21.2 21.9 21.9 22.1 23.4 23.5 25.4 Total Noninterest Expenses 14.5 14.1 12.6 12.9 12.2 13.3 12.9 12.2 12.6 Income before Taxes 11.8 9.0 4.1 2.7 1.5 5.1 11.5 12.9 10.2 Net Income 9.1 6.9 3.0 1.9 1.1 3.8 8.5 9.8 8.0 Diluted Earnings Per Share 1.15 0.87 0.37 0.24 0.14 0.48 1.09 1.25 1.02 Total Assets 3,236.6 3,183.9 3,268.6 3,161.1 3,141.7 3,155.3 3,215.5 3,249.8 3,252.7 Gross Loans Receivable (ex. HFS) 2,665.0 2,641.0 2,702.0 2,619.3 2,652.8 2,674.7 2,713.2 2,764.5 2,767.3 Allowance for Credit Losses on Loans & Leases (29.3) (29.5) (29.0) (27.8) (36.1) (28.0) (27.9) (29.3) (30.7) All Other Assets 542.3 513.4 537.6 514.0 452.8 452.6 474.3 456.0 454.7 Total Liabilities 2,953.3 2,908.7 2,998.0 2,893.2 2,874.7 2,887.2 2,949.7 2,991.9 3,003.9 Total Deposits 2,759.3 2,750.4 2,787.6 2,688.2 2,662.4 2,673.5 2,736.8 2,768.6 2,788.9 Borrowings 144.6 109.5 159.5 159.4 159.3 159.3 159.2 159.1 159.1 Other Liabilities 49.4 48.7 50.9 45.6 53.0 54.5 53.8 64.1 55.9 Total Shareholders’ Equity 283.3 275.2 270.5 267.9 267.0 268.0 265.8 257.9 248.8 Net Interest Margin 3.10% 2.81% 2.60% 2.72% 2.75% 2.71% 2.81% 2.85% 3.07% PPNR ROAA 1.43% 1.18% 1.05% 1.13% 1.22% 1.10% 1.27% 1.37% 1.58% Effective Tax Rate 23% 23% 27% 29% 24% 26% 26% 24% 22% Noninterest Expense to Average Assets 1.83% 1.76% 1.56% 1.62% 1.55% 1.66% 1.56% 1.48% 1.56% 5
Private Client Groups | 2Q25 Update • Since April 2025, hired 14 New York metro-based employees to build out our deposit gathering capabilities • 5 new teams added through July, all with proven success in generating no- and low-cost deposits 6
Maintaining our Strong Balance Sheet $1,081 $736 $319 $109 Liquidity Uninsured Deposits Unencumbered Securities Unencumbered Cash Borrowing Capacity1 1 Bank lines, including FHLB & FRB 2 TCE/TA consolidated ratio; all others Bank ratios. Regulatory ratios are estimates, pending FDIC call report filing. • $2,024 million total insured deposits includes: ‒ $1,904 million FDIC-insured deposits ‒ $120 million deposits secured by FHLB LOCs (municipal deposits) • 13.3% liquidity on balance sheet (Cash & Securities) • Stable insured deposit base • Additional 2Q25 ratios: ‒ 349% CRE Concentration Ratio ‒ 56% Construction Concentration Ratio • 14,626 shares repurchased in 2Q25 at an average price of $28.86 • Approximately 205,000 shares remaining available for repurchase under current plan Abundant Excess Liquidity Building Excess Capital 12.19% 10.55% 13.28% 8.68% CET1 Leverage Total Risk Based TCE / TA Minimum + buffer Well Above Capital Minimums 2 Dollars in millions 2.1X Liquidity Coverage $1,509 7
Well Positioned For Lower Rates • For the remainder of 2025, $665 million in time deposits maturing at a weighted average rate of 4.41%: ‒ $395 million Retail time repricing an average ~8 basis points lower based on current rates; annualized savings of $0.3 million of interest expense ‒ $270 million Brokered time repricing an average ~31 basis points lower based on current rates; annualized savings of $0.9 million of interest expense • A total $1.2 million annualized savings is ~$0.12 benefit to EPS and ~4 basis points incremental to Net Interest Margin, assuming no further movement in Fed Funds and stable asset yields • 1H’25 results: ~$745 million of CDs repriced ~80 basis points lower Maturity Quarter Balance Maturity Rate Current Rate V 3Q25 $161 4.52% 4.25% -0.27% 4Q25 $234 4.21% 4.25% 0.04% Total Retail $395 4.33% 4.25% -0.08% Dollars in millions Maturity Quarter Balance Maturity Rate Current Rate V 3Q25 $170 4.71% 4.20% -0.51% 4Q25 $100 4.18% 4.20% +0.02% Total Brokered $270 4.51% 4.20% -0.31% Retail Time Deposits Brokered Time Deposits 8
Rate 0.00% DDA 13% Rate 0.29% NOW 4% Rate 3.83% Money Market 33% Rate 2.93% Savings 3% Rate 4.33% Time 47% Deposit Performance 2Q25 Average Deposits • 2Q25 Total Deposit cost of 3.40% down 20 basis points from prior quarter’s 3.60% • Time deposit cost reduction driven by ~80 basis point favorable repricing of ~$745 million brokered and retail deposits in 1H’26 • Additional rate cuts in Money Market, Savings products yielding incremental improvement • June 2025 ‘exit rate’ on deposits of 3.28%, compared to 3.41% at March 2025 and 3.65% at December 2024 9 4.27% 4.30% 4.21% 4.08% 3.90% 3.69% 3.81% 3.72% 3.60% 3.40% 2.75% 2.72% 2.60% 2.81% 3.10% 2.30% 2.80% 3.30% 3.80% 4.30% 2Q24 3Q24 4Q24 1Q25 2Q25 NIM Total Deposit Cost IB Deposit Cost Funding Cost & NIM Trends
$1,046 $1,224 $1,228 $1,175 $1,078 $310 $697 $720 $724 $725 $351 $522 $501 $516 $559 $98 $155 $183 $174 $204 $89 $77 $87 $118 $104 $1,895 $2,675 $2,719 $2,706 $2,669 454% 425% 397% 375% 349% 300% 320% 340% 360% 380% 400% 420% 440% 460% 480% - 500 1,000 1,500 2,000 2,500 4Q21 4Q22 4Q23 4Q24 2Q25 CRE Investor CRE Owner Occupied C&I Construction Residential / Other CRE Concentration Managing CRE Concentration Lower Dollars in millions 10
Credit Trends $36.1 $27.8 $29.0 $29.5 $29.3 1.36% 1.06% 1.07% 1.11% 1.10% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% $0 $5 $10 $15 $20 $25 $30 $35 2Q24 3Q24 4Q24 1Q25 2Q25 Allowance for Credit Losses (ACL) Allowance for credit losses ACL / Loans Dollars in millions $0.3 $14.8 $3.0 $0.1 ($0.1) 2Q24 3Q24 4Q24 1Q25 2Q25 Net Charge Offs (Recoveries) 2Q24 3Q24 4Q24 1Q25 2Q25 Risk Rating Balance % Balance % Balance % Balance % Balance % 1-5 “Pass” $2,497 94.0% $2,458 93.7% $2,557 94.5% $2,453 92.8% $2,523 94.5% 6 “Special Mention” $71 2.7% $97 3.7% $93 3.4% $1631 6.2% $1202 4.5% 7 “Substandard” $80 3.0% $67 2.5% $54 2.0% $27 1.0% $26 1.0% 8 “Doubtful” $8 0.3% $1 0.1% $1 0.1% $1 0.1% $0 0.0% Total Gross Loans $2,657 $2,623 $2,706 $2,645 $2,669 Non-performing Loans $56.2 $65.5 $53.3 $26.4 $23.9 % of Total Loans 2.12% 2.50% 1.97% 1.00% 0.89% Non-performing Assets $56.2 $65.5 $61.6 $26.4 $25.2 % of Total Assets 1.79% 2.07% 1.88% 0.83% 0.78% 1 99% of Risk Rated 6 loans are current on payments, 96% are guaranteed by ultra-high net worth sponsors. 2 99% of Risk Rated 6 loans are current on payments, 96.5% are guaranteed by ultra-high net worth sponsors. 11
Dedicated to making a difference. Financial Outlook Modest loan growth NIM expansion Stable credit Continued capital growth Unchanged focus on efficiency 12
Questions? 13
Appendix
15 Total Loan Portfolio = $2,669 million • Favorable long-term trends in Investor CRE:Residential 1.3% C&I 20.8% CRE Owner Occupied 27.4% CRE Investor 40.4% Commercial Const. 7.6% Other 2.6% 55.2% 45.8% 45.2% 43.4% 40.4% 34.9% 45.5% 44.9% 45.8% 48.1% 4Q21 4Q22 4Q23 4Q24 2Q25 CRE Investor CRE O/O + C&I Loan Portfolio Composition
$1,895 $2,675 $2,719 $2,706 $2,669 4.30% 5.56% 5.99% 6.09% 6.39% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4Q21 4Q22 4Q23 4Q24 2Q25 Loan Balance Portfolio Loan Yield Favorable Loan Yield Growth Loan portfolio yields increased 209 bps since 2021 1 June 2025 Yield2 by Vintage 1 Weighted average yield based on active loans as of each date, an “exit" rate 2 Weighted average yield based on active loans as of 6-30-2025, an “exit" rate 65% of balances are 2022-2025 vintages Year Maturity Rate Reset Total Wtd Yield % Total Loans 2025 $487 $31 $518 6.07% 19% 2026 $274 $48 $322 5.20% 12% 2027 $376 $35 $411 5.22% 15% 2028+ $549 $54 $603 5.64% 23% Total $1,686 $167 $1,854 5.59% Loan Maturities & Contractual Repricing Excluding floating rate loans Dollars in millions 5.30% Pre 2022 6.29% 2022 7.54% 2023 7.50% 2024 8.00% 2025 16
CRE Loan Portfolio Total CRE Portfolio = $1,802 million By Property Type • 60% Non-Owner Occupied • 63% weighted average LTV2 • 69% of loan balances have recourse Property Type Investor Owner Occupied Total Residential Care $31 $276 $307 Retail $92 $4 $96 Office $78 $15 $93 Multifamily $60 - $60 All Other $130 $14 $144 Total $390 $309 $699 Loans Maturing or Repricing in 2025 - 20263 Excluding floating rate loans Dollars in millions 1 1 Includes Owner Occupied CRE, does not include Construction 2 LTVs based on original LTV values, at origination 3 Loans subject to repricing generally have a floor of not less than the original rate Residential Care 36% Retail 18% MultiFamily 14% Office 8% Industrial Warehouse 8% Mixed Use 6% Medical Office 4% Other 4% Special Use 2% 17
Select CRE Sectors 1Includes Owner Occupied CRE CRE Office : $150 million exposure 6% of total loan portfolio Geography• 44 loans with $3.4 million average balance • $106 million have personal recourse to high-net-worth guarantors; $44 million have no recourse: ‒ $22 million owner occupied ‒ $16 million (2 loans) state GSAs ‒ $4 million credit-tenant • Loans maturing or have a rate reset as follows: Year Balance Count 2025 $68 13 2026 $26 8 2027 $28 10 2028+ $28 13 Total $150 44 Dollars in millions 1 CRE Multifamily : $245 million exposure 9% of total loan portfolio CT - Fairfield County $43.2 CT - All Other $3.5 NY - Westchester County $10.1 NY - Brooklyn $3.0 NJ $29.3TX $28.3 MS $17.5 GA $12.6 FL $2.2 60% located in Bankwell’s primary market Out of primary market loans are generally either GSA-leased, credit tenants, or owner-occupied • 87 loans with $2.8 million average balance • 20% in New York City, remaining 80% in surrounding “Tri-State” & PA • $16 million has either rent control or rent stabilized units (0.6% of total loan portfolio); $9 million guaranteed by sponsor with $1+ billion net worth and $0.5+ billion liquidity CT - Fairfield County $52.6 CT - New Haven County $62.5 CT - All Other $21.9 NY - NYC $50.0 NY - Rockland County $22.7 NY - Westchester County $8.2 PA $19.9 NJ $7.1 Geography NYC Multifamily Loan Count Balance % Brooklyn 5 $39.2 78.3% Manhattan 2 $6.0 11.9% Queens 1 $4.9 9.8% Total 8 $50.0 100% 18
• 98% of C&I portfolio has recourse • 96% of Healthcare loans have recourse − Primarily consists of working capital lines secured by government accounts receivable • Insurance lending primarily to brokers of home and auto insurance 1 Does not Include Owner Occupied CRE 19 C&I Loan Portfolio Health Care & Social Assistance 38% Finance 19% Insurance (Primarily Brokers) 17% Real Estate and Rental/Leasing 8% Other 6% Admin & Support, Waste Mgmt, Remediation Svcs 5% Retail Trade 3% Manufacturing 2% Arts, Entertainment & Recreation 2% By Industry Type Total Portfolio = $559 million 1
$838 million combined Healthcare portfolio • Consists primarily of skilled nursing facilities located across the US • Healthcare lending team has more than 15 years of industry experience • High touch service model attracts desirable ultra-high net worth Healthcare borrowers • 100% of Skilled Nursing Lending has recourse • Focused on originating Healthcare loans in the most desirable states with: – Higher average occupancy – Low denial of payment rates for Medicaid – Strong senior demographic trends – Certificate of need programs 1 Healthcare Portfolio Composition CRE Skilled Nursing Facility By State 1 Includes Physicians 20 Combined Healthcare Dollars in millions Skilled Nursing 81% Assisted Living 16% Other 3% FL 40% NY 12% OH 12% NC 5% TN 5% VA 3% IN 3% MO 3% All Other 17%
Loan Segment Balance % Total Assets Commentary Loan 1 CRE – Retail $8.7 0.27% • Suburban retail loan in Westchester County, NY modified during COVID • $4.5 million charged off, life-to-date Loan 2 CRE – Office $5.5 0.17% • Class A suburban NJ office park • Bankwell 17% participant in $84 million multi-bank club deal • 80% occupied; 40% recourse • Litigation ongoing; receiver in place • $8.2 million charge off, life-to-date OREO 1 -- $1.3 0.04% • Previously non-performing loan; Bank took ownership of property in 2Q25 SBA guaranteed balances $5.4 0.17% All other non-performing assets $4.3 0.13% Total Non-performing assets $25.2 0.78% All non-performing loans individually evaluated for impairment Balances charged off or specifically reserved, as appropriate Dollars in millions Non-Performing Assets 21
$1,774 $1,785 $2,083 $2,135 $1,027 $952 $705 $624 4Q22 4Q23 4Q24 2Q25 Non-Brokered Brokered Reduced Reliance on Brokered Deposits Reduced Reliance on Brokered Deposits Dollars in millions Brokered Deposits Peaked in 4Q22 • Brokered deposit balances decreased $81 million YTD; $403 million reduction from peak • Non-Brokered deposits continue to increase $2,801 $2,737 $2,788 $2,759 22
Bankwell Financial Group (Nasdaq: BWFG) $3.2B Total Assets $2.7B Loans $0.28B Equity $2.8B Deposits 1.83% Non-interest Exp / Assets ~160 Employees 8.68% TCE Ratio 10.17% Consolidated CET1 Ratio C&I & CREOO 48% CRE Inv 40% All Other 12% Loans Core 69% 1 Estimate, pending FRY9C filing. Time > $250k 8% Brokered 23% Deposits 1 23
