Bankwell Financial Group Reports Operating Results for the Fourth Quarter, Declares First Quarter Dividend

Bankwell Financial Group Reports Operating Results for the Fourth Quarter, Declares First Quarter Dividend Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $9.1 million, or $1.15 per share for the fourth quarter of 2025, versus $10.1 million, or $1.27 per share, for the third quarter of 2025. The Company's Board of Directors declared a $0.20 per share cash dividend, payable February 20, 2026 to shareholders of record on February 10, 2026. Reported fourth quarter of 2025 GAAP net income reflects $1.5 million of one-time income tax expense related to adjustments to the income tax provision, primarily due to the finalization of state tax filings and changes in estimated tax positions associated with the Company’s expanded state-level footprint. These adjustments relate to both current- and prior‑year tax estimates. Reported GAAP net income of $9.1 million, or $10.7 million on an operating basis(1), for the fourth quarter of 2025. Reported diluted earnings per share was $1.15, or $1.36 on an operating basis(1), for the fourth quarter of 2025. Reported return on average assets was 1.11%, or 1.29% on an operating basis(1), for the fourth quarter of 2025. Reported return on average tangible shareholders' equity was 12.31%, or 14.32% on an operating basis(1), for the fourth quarter of 2025. Discussion of Outlook; Bankwell Financial Group Chief Executive Officer, Christopher R. Gruseke: "We finished the year in strong fashion, reporting operating net income of $1.36 per share for the 4th quarter and Pre-tax, pre-provision net revenue return on average assets of 1.80%. GAAP Net Income of $1.15 per share for the quarter includes a one-time adjustment for multiple years’ state level tax provisioning outside of our home state of Connecticut. We entered the year with a clear set of priorities: strengthen credit, improve the funding mix, build non-interest income, generate high‑quality growth, and embrace an innovative mindset as we continue to invest in our people and in technology and I’m pleased to say that we delivered on each of these priorities. Building on the work accomplished this year we are pleased to provide the following guidance for 2026: We expect loan growth of 4 to 5 percent. We anticipate net interest income in the range of $111 to $112 million. We also expect non-interest income to increase to approximately $11 to $12 million. Regarding expenses, we estimate total non-interest expense of $64 to $65 million, which incorporates a prudent level of ongoing investment in our people, infrastructure, and operational capabilities. We are confident that our increased investments will continue to provide further operating leverage; our guidance yields an efficiency ratio of approximately 51% to 53%, versus 54.1% in 2025." (1) Non-GAAP Financial Measure, refer to the "Non-GAAP Financial Measures" section of this document for additional detail. Key Points for Fourth Quarter and Bankwell’s Outlook Credit Quality Improves Amid Solid Loan Growth. $121.9 million net loan growth during the quarter ended December 31, 2025, resulting in $134.2 million, or 5.0%, growth compared to the year ended December 31, 2024.As of December 31, 2025, nonperforming assets as a percentage of total assets improved to 0.49%, compared to 0.56% as of September 30, 2025. Nonperforming assets have declined $1.9 million from the third quarter, mainly driven by the sale of an OREO property for $1.3 million and the collection of $0.4 million on an SBA guarantee. Net Interest Margin Expands on Lower Deposit Costs and Improved Mix. Reported Net Interest Margin was 3.40% for the fourth quarter of 2025, an increase of 6 basis points from the third quarter of 2025. Earning asset yields declined 11 basis points from the third quarter of 2025 to 6.23% while deposit costs decreased 15 basis points to 3.15% over the same period.During the quarter ended December 31, 2025, average low-cost deposits increased by $21.6 million compared to the third quarter of 2025 and by $85.9 million compared to the same period in the prior year. Advancing Key Strategic Priorities. SBA loan sale gains increased to $2.2 million in the fourth quarter of 2025, compared to $1.4 million in the third quarter of 2025. The SBA Lending division delivered $24.3 million in originations in the fourth quarter of 2025, bringing the total year originations to $68.3 million.As a result of SBA loan sale gains, noninterest income as a percentage of revenue increased to 11.13% in the fourth quarter of 2025, compared to 8.76% in the third quarter of 2025.For the fourth quarter of 2025, the Company realized an efficiency ratio (1) of 50.8%, compared to 51.4% for the third quarter of 2025. Fourth Quarter 2025 Financial Highlights and Key Performance Indicators (KPIs): December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 Return on average assets(1)(6) 1.11 % 1.24 % 1.14 % 0.86 % 0.37 % Pre-tax, pre-provision net revenue return on average assets(1)(6) 1.80 % 1.70 % 1.43 % 1.18 % 1.05 % Return on average shareholders' equity(1)(6) 12.20 % 13.84 % 12.98 % 10.16 % 4.35 % Return on average tangible shareholders' equity(1)(6) 12.31 % 13.96 % 13.10 % 10.25 % 4.40 % Net Interest Margin(1)(6)(7) 3.40 % 3.34 % 3.10 % 2.81 % 2.60 % Efficiency Ratio(1)(3) 50.8 % 51.4 % 56.1 % 59.9 % 56.4 % Noninterest expense to average assets(1)(6) 1.87 % 1.80 % 1.83 % 1.76 % 1.56 % Net loan (recoveries) charge-offs as a percentage of average loans(1)(6) 0.00 % (0.01 )% 0.00 % 0.00 % 0.11 % Dividend payout(1)(4) 17.39 % 15.75 % 17.39 % 22.99 % 54.05 % Fully diluted tangible book value per common share(1)(2) $ 37.84 $ 36.84 $ 35.65 $ 34.56 $ 34.09 Total capital to risk-weighted assets(1)(5) 12.94 % 13.48 % 13.28 % 13.22 % 12.70 % Total common equity tier 1 capital to risk-weighted assets(1)(5) 11.87 % 12.39 % 12.20 % 12.11 % 11.64 % Tier I Capital to Average Assets(1)(5) 10.55 % 10.71 % 10.57 % 10.13 % 10.09 % Tangible common equity to tangible assets(1)(2) 8.90 % 8.95 % 8.68 % 8.57 % 8.20 % Earnings per common share - diluted $ 1.15 $ 1.27 $ 1.15 $ 0.87 $ 0.37 Common shares issued and outstanding 7,899,943 7,877,443 7,873,387 7,888,013 7,859,873 (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. Return on average tangible shareholders' equity is calculated by dividing annualized net income by average shareholders' equity less average intangible assets. 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. (7) Based on a fully tax equivalent basis. Pre-Tax, Pre-Provision Net Revenue(1) ("PPNR") PPNR for the fourth quarter ended December 31, 2025 was $14.9 million, an increase of 7.2% from $13.9 million recognized for the third quarter ended September 30, 2025. For the Quarter Ended (Dollars in thousands) December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 Net interest income $ 26,946 $ 25,987 $ 23,936 $ 22,066 $ 20,199 Total noninterest income 3,376 2,495 2,012 1,505 964 Total revenues 30,322 28,482 25,948 23,571 21,163 Total noninterest expense 15,470 14,631 14,546 14,141 12,644 PPNR $ 14,852 $ 13,851 $ 11,402 $ 9,430 $ 8,519 (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 December 31, 2025 were $30.3 million, compared with $28.5 million in the previous quarter. The increase in revenues for the quarter ended December 31, 2025 was mainly attributable lower funding costs. Additional favorability for the quarter ended December 31, 2025 resulted from increased gains on SBA loan sales, reflecting higher sales volume. Net Interest Margin The Net Interest Margin (fully taxable equivalent basis) for the quarters ended December 31, 2025 and September 30, 2025 was 3.40% and 3.34%, respectively. The increase in the Net Interest Margin is mainly due to lower cost of interest bearing deposits. Allowance for Credit Losses - Loans ("ACL-Loans") The ACL-Loans was $30.7 million as of December 31, 2025 compared to $30.0 million as of September 30, 2025. The ACL-Loans as a percentage of total loans was 1.08% as of December 31, 2025 compared to 1.10% as of September 30, 2025. The provision for credit losses - loans was $0.7 million for the quarter ended December 31, 2025. Total nonperforming loans decreased $0.7 million to $16.3 million as of December 31, 2025, when compared to the previous quarter. Nonperforming assets as a percentage of total assets decreased to 0.49% at December 31, 2025, compared to the previous quarter's ratio of 0.56%. BANKWELL FINANCIAL GROUP, INC. ASSET QUALITY (unaudited) (Dollars in thousands) For the Quarter Ended December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 ACL-Loans: Balance at beginning of period $ 29,984 $ 29,256 $ 29,485 $ 29,007 $ 27,752 Charge-offs: Residential real estate — — — — — Commercial real estate — — — (67 ) (1,100 ) Commercial business — (14 ) (15 ) — (703 ) Consumer — (46 ) (5 ) (33 ) (5 ) Construction — — — — (1,155 ) Total charge-offs — (60 ) (20 ) (100 ) (2,963 ) Recoveries: Residential real estate — — — — — Commercial real estate 7 272 — — — Commercial business 23 92 112 4 4 Consumer 10 4 10 36 5 Construction — — — — — Total recoveries 40 368 122 40 9 Net loan recoveries (charge-offs) 40 308 102 (60 ) (2,954 ) Provision (credit) for credit losses - loans 681 420 (331 ) 538 4,209 Balance at end of period $ 30,705 $ 29,984 $ 29,256 $ 29,485 $ 29,007 As of December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 Asset quality: Nonaccrual loans Residential real estate $ 557 $ 570 $ 617 $ 811 $ 791 Commercial real estate 14,445 14,667 16,387 17,946 44,814 Commercial business 1,302 1,729 6,871 7,626 7,672 Construction — — — — — Consumer — — — — — Total nonaccrual loans 16,304 16,966 23,875 26,383 53,277 Other real estate owned — 1,284 1,284 — 8,299 Total nonperforming assets $ 16,304 $ 18,250 $ 25,159 $ 26,383 $ 61,576 Nonperforming loans as a % of total loans 0.57 % 0.62 % 0.89 % 1.00 % 1.97 % Nonperforming assets as a % of total assets 0.49 % 0.56 % 0.78 % 0.83 % 1.88 % ACL-loans as a % of total loans 1.08 % 1.10 % 1.10 % 1.11 % 1.07 % ACL-loans as a % of nonperforming loans 188.33 % 176.73 % 122.54 % 111.76 % 54.44 % Total past due loans to total loans 0.31 % 0.76 % 0.91 % 1.08 % 1.63 % Financial Condition & Capital Assets totaled $3.4 billion at December 31, 2025, an increase of $91.4 million, or 2.8% compared to December 31, 2024. Gross loans totaled $2.8 billion at December 31, 2025, an increase of $134.2 million, or 5.0% compared to December 31, 2024. Deposits totaled $2.8 billion at December 31, 2025, an increase of $41.9 million, or 1.5% compared to December 31, 2024. Brokered deposits have decreased $146.3 million or 20.7%, when compared to December 31, 2024. Period End Loan Composition December 31, 2025 September 30, 2025 December 31, 2024 Current QTD % Change Year over Year % Change Residential Real Estate $ 33,139 $ 33,625 $ 42,766 (1.4 )% (22.5 )% Commercial Real Estate(1) 1,930,979 1,897,896 1,899,134 1.7 1.7 Construction 153,778 170,888 173,555 (10.0 ) (11.4 ) Total Real Estate Loans 2,117,896 2,102,409 2,115,455 0.7 0.1 Commercial Business 645,321 552,682 515,125 16.8 25.3 Consumer 76,855 63,098 75,308 21.8 2.1 Total Loans $ 2,840,072 $ 2,718,189 $ 2,705,888 4.5 % 5.0 % (1) Includes owner occupied commercial real estate of $0.8 billion at December 31, 2025, $0.8 billion at September 30, 2025, and $0.7 billion at December 31, 2024, respectively. Period End Deposit Composition December 31, 2025 September 30, 2025 December 31, 2024 Current QTD % Change Year over Year % Change Noninterest bearing demand $ 403,652 $ 397,408 $ 321,875 1.6 % 25.4 % NOW 90,205 84,736 105,090 6.5 (14.2 ) Money Market 1,007,844 897,387 899,413 12.3 12.1 Savings 97,418 95,242 90,220 2.3 8.0 Time 1,230,362 1,282,642 1,370,972 (4.1 ) (10.3 ) Total Deposits $ 2,829,481 $ 2,757,415 $ 2,787,570 2.6 % 1.5 % Shareholders’ equity totaled $301.5 million as of December 31, 2025, an increase of $31.0 million compared to December 31, 2024, primarily a result of year to date net income of $35.2 million. The increase was partially offset by dividends paid of $6.3 million. As of December 31, 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 12.94%, 11.87%, and 10.55%, respectively. We recommend reading this earnings release in conjunction with the Fourth Quarter 2025 Investor Presentation, located at https://investor.mybankwell.com/events-and-presentations/ and included as an exhibit to our January 29, 2026 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 January 29, 2026, 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 [email protected]. 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 shareholders' equity, return on average assets, operating basis return on average assets, return on average shareholders' equity, operating basis return on average tangible 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, adjusted average equity, operating basis diluted earnings per share, operating net income, 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. See "Reconciliation of GAAP to Non-GAAP Measures (unaudited)". BANKWELL FINANCIAL GROUP, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (Dollars in thousands) December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 ASSETS Cash and due from banks $ 214,567 $ 289,628 $ 313,998 $ 292,006 $ 293,552 Federal funds sold 10,354 5,732 8,466 12,922 13,972 Cash and cash equivalents 224,921 295,360 322,464 304,928 307,524 Investment securities Marketable equity securities, at fair value 2,248 2,223 2,188 2,164 2,118 Available for sale investment securities, at fair value 160,409 96,473 103,930 97,321 107,428 Held to maturity investment securities, at amortized cost 29,465 29,538 36,434 36,478 36,553 Total investment securities 192,122 128,234 142,552 135,963 146,099 Loans receivable (net of ACL-Loans of $30,705, $29,984, $29,256, $29,485, and $29,007, at December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, respectively) 2,804,441 2,684,016 2,635,742 2,611,495 2,672,959 Accrued interest receivable 16,143 15,633 14,741 15,409 14,535 Federal Home Loan Bank stock, at cost 6,207 4,951 5,051 3,583 5,655 Premises and equipment, net 21,582 22,387 23,020 22,978 23,856 Bank-owned life insurance 54,207 53,846 53,488 53,136 52,791 Goodwill 2,589 2,589 2,589 2,589 2,589 Deferred income taxes, net 11,356 9,027 9,684 9,551 9,742 Other real estate owned — 1,284 1,284 — 8,299 Other assets 26,291 26,636 25,978 24,261 24,427 Total assets $ 3,359,859 $ 3,243,963 $ 3,236,593 $ 3,183,893 $ 3,268,476 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities Deposits Noninterest bearing deposits $ 403,652 $ 397,408 $ 397,195 $ 349,525 $ 321,875 Interest bearing deposits 2,425,829 2,360,007 2,362,086 2,400,920 2,465,695 Total deposits 2,829,481 2,757,415 2,759,281 2,750,445 2,787,570 Advances from the Federal Home Loan Bank 110,000 75,000 75,000 40,000 90,000 Subordinated debentures 69,697 69,636 69,574 69,513 69,451 Accrued expenses and other liabilities 49,192 49,121 49,448 48,721 50,935 Total liabilities 3,058,370 2,951,172 2,953,303 2,908,679 2,997,956 Shareholders’ equity Common stock, no par value 120,118 119,353 118,698 118,439 119,108 Retained earnings 181,587 174,008 165,495 157,971 152,656 Accumulated other comprehensive (loss) (216 ) (570 ) (903 ) (1,196 ) (1,244 ) Total shareholders’ equity 301,489 292,791 283,290 275,214 270,520 Total liabilities and shareholders’ equity $ 3,359,859 $ 3,243,963 $ 3,236,593 $ 3,183,893 $ 3,268,476 BANKWELL FINANCIAL GROUP, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited) (Dollars in thousands, except share data) For the Quarter Ended For the Year Ended December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Interest and dividend income Interest and fees on loans $ 46,739 $ 46,328 $ 44,128 $ 43,475 $ 42,851 $ 180,670 $ 172,832 Interest and dividends on securities 1,834 1,410 1,478 1,445 1,482 6,167 5,192 Interest on cash and cash equivalents 2,037 2,853 3,043 3,557 3,510 11,490 13,970 Total interest and dividend income 50,610 50,591 48,649 48,477 47,843 198,327 191,994 Interest expense Interest expense on deposits 22,388 22,585 23,083 24,772 25,640 92,828 101,258 Interest expense on borrowings 1,276 2,019 1,630 1,639 2,004 6,564 7,454 Total interest expense 23,664 24,604 24,713 26,411 27,644 99,392 108,712 Net interest income 26,946 25,987 23,936 22,066 20,199 98,935 83,282 Provision (credit) for credit losses 616 372 (411 ) 463 4,458 1,040 22,620 Net interest income after provision (credit) for credit losses 26,330 25,615 24,347 21,603 15,741 97,895 60,662 Noninterest income Bank owned life insurance 361 359 352 344 348 1,416 1,356 Service charges and fees 771 779 674 602 589 2,826 1,963 Gains and fees from sales of loans 2,184 1,372 1,080 442 24 5,078 523 Other 60 (15 ) (94 ) 117 3 68 (124 ) Total noninterest income 3,376 2,495 2,012 1,505 964 9,388 3,718 Noninterest expense Salaries and employee benefits 7,717 7,995 7,521 7,052 5,056 30,285 23,746 Occupancy and equipment 2,575 2,469 2,505 2,575 2,600 10,124 9,494 Professional services 1,415 1,412 1,632 1,529 1,286 5,988 4,482 Data processing 877 633 712 885 905 3,107 3,251 Director fees 337 333 333 348 342 1,351 1,840 FDIC insurance 612 610 684 779 862 2,685 3,350 Marketing 108 140 218 142 175 608 452 Other 1,829 1,039 941 831 1,418 4,640 4,436 Total noninterest expense 15,470 14,631 14,546 14,141 12,644 58,788 51,051 Income before income tax expense 14,236 13,479 11,813 8,967 4,061 48,495 13,329 Income tax expense 5,092 3,401 2,725 2,079 1,098 13,297 3,559 Net income $ 9,144 $ 10,078 $ 9,088 $ 6,888 $ 2,963 $ 35,198 $ 9,770 Earnings Per Common Share: Basic $ 1.16 $ 1.28 $ 1.16 $ 0.88 $ 0.37 $ 4.49 $ 1.24 Diluted $ 1.15 $ 1.27 $ 1.15 $ 0.87 $ 0.37 $ 4.45 $ 1.23 Weighted Average Common Shares Outstanding: Basic 7,776,740 7,774,887 7,777,469 7,670,224 7,713,970 7,750,191 7,710,076 Diluted 7,858,047 7,844,785 7,819,829 7,740,521 7,727,412 7,826,280 7,737,952 Dividends per common share $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.80 $ 0.80 BANKWELL FINANCIAL GROUP, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited) (Dollars in thousands, except share data) As of Computation of Tangible Common Equity to Tangible Assets December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 Total Equity $ 301,489 $ 292,791 $ 283,290 $ 275,214 $ 270,520 Less: Goodwill 2,589 2,589 2,589 2,589 2,589 Other intangibles — — — — — Tangible Common Equity $ 298,900 $ 290,202 $ 280,701 $ 272,625 $ 267,931 Total Assets $ 3,359,859 $ 3,243,963 $ 3,236,593 $ 3,183,893 $ 3,268,476 Less: Goodwill 2,589 2,589 2,589 2,589 2,589 Other intangibles — — — — — Tangible Assets $ 3,357,270 $ 3,241,374 $ 3,234,004 $ 3,181,304 $ 3,265,887 Tangible Common Equity to Tangible Assets 8.90 % 8.95 % 8.68 % 8.57 % 8.20 % As of Computation of Fully Diluted Tangible Book Value per Common Share December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 Total shareholders' equity $ 301,489 $ 292,791 $ 283,290 $ 275,214 $ 270,520 Less: Preferred stock — — — — — Common shareholders' equity $ 301,489 $ 292,791 $ 283,290 $ 275,214 $ 270,520 Less: Goodwill 2,589 2,589 2,589 2,589 2,589 Other intangibles — — — — — Tangible common shareholders' equity $ 298,900 $ 290,202 $ 280,701 $ 272,625 $ 267,931 Common shares issued and outstanding 7,899,943 7,877,443 7,873,387 7,888,013 7,859,873 Fully Diluted Tangible Book Value per Common Share $ 37.84 $ 36.84 $ 35.65 $ 34.56 $ 34.09 BANKWELL FINANCIAL GROUP, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited) (Dollars in thousands, except share data) Computation of Operating Basis Diluted EPS, Operating Basis Return on Average Assets, Operating Basis Return on Average Equity For the Quarter Ended (Dollars in thousands) December 31, 2025 Net Income $ 9,144 Income tax expenses related to a Return-to-provision true-up 855 Updates to the reserve for uncertain tax positions methodology change and state-level presence 692 Operating Net Income $ 10,691 Weighted Average Common Shares Outstanding: Diluted 7,858,047 Operating Diluted EPS $ 1.36 Average Assets $ 3,277,608 Operating Basis Return on Average Assets 1.29 % Adjusted Average Tangible Equity $ 296,140 Operating Basis Return on Average Tangible Shareholders' Equity 14.32 % BANKWELL FINANCIAL GROUP, INC. EARNINGS PER SHARE ("EPS") (unaudited) (Dollars in thousands, except share data) For the Quarter Ended December 31, For the Year Ended December 31, 2025 2024 2025 2024 (In thousands, except per share data) Net income $ 9,144 $ 2,963 $ 35,198 $ 9,770 Dividends to participating securities(1) 27 (38 ) 106 (156 ) Undistributed earnings allocated to participating securities(1) (127 ) (34 ) (514 ) (87 ) Net income for earnings per share calculation 9,044 2,891 34,790 9,527 Weighted average shares outstanding, basic 7,776,740 7,713,970 7,750,191 7,710,076 Effect of dilutive equity-based awards(2) 81,307 13,442 76,089 27,876 Weighted average shares outstanding, diluted 7,858,047 7,727,412 7,826,280 7,737,952 Net earnings per common share: Basic earnings per common share $ 1.16 $ 0.37 $ 4.49 $ 1.24 Diluted earnings per common share $ 1.15 $ 0.37 $ 4.45 $ 1.23 (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 December 31, 2025 December 31, 2024 Average Balance Interest Yield/ Rate(4) Average Balance Interest Yield/ Rate(4) Assets: Cash and Fed funds sold $ 233,348 $ 2,037 3.46 % $ 313,777 $ 3,510 4.45 % Securities(1) 185,111 1,834 3.96 151,300 1,506 3.98 Loans: Commercial real estate 1,904,755 30,454 6.26 1,896,551 28,222 5.82 Residential real estate 33,675 485 5.76 44,329 753 6.79 Construction 181,202 3,468 7.49 171,244 3,281 7.50 Commercial business 578,924 11,364 7.68 505,655 9,911 7.67 Consumer 63,762 968 6.02 43,315 684 6.29 Total loans 2,762,318 46,739 6.63 2,661,094 42,851 6.30 Federal Home Loan Bank stock 3,453 113 12.93 5,655 119 8.36 Total earning assets 3,184,230 $ 50,723 6.23 % 3,131,826 $ 47,986 6.00 % Other assets 93,378 94,781 Total assets $ 3,277,608 $ 3,226,607 Liabilities and shareholders' equity: Interest bearing liabilities: NOW $ 95,035 $ 62 0.26 % $ 90,497 $ 42 0.18 % Money market 957,209 8,571 3.55 855,522 8,472 3.94 Savings 96,566 703 2.89 88,956 692 3.10 Time 1,263,108 13,052 4.10 1,385,264 16,434 4.72 Total interest bearing deposits 2,411,918 22,388 3.68 2,420,239 25,640 4.21 Borrowed Money 110,961 1,275 4.56 159,416 2,004 5.00 Total interest bearing liabilities 2,522,879 $ 23,663 3.72 % 2,579,655 $ 27,644 4.27 % Noninterest bearing deposits 404,600 322,135 Other liabilities 52,812 54,013 Total liabilities 2,980,291 2,955,803 Shareholders' equity 297,317 270,804 Total liabilities and shareholders' equity $ 3,277,608 $ 3,226,607 Net interest income(2) $ 27,060 $ 20,342 Interest rate spread 2.51 % 1.73 % Net Interest Margin(3) 3.40 % 2.60 % (1) Average balances and yields for securities are based on amortized cost. (2) The adjustment for securities and loans taxable equivalency amounted to $114 thousand and $143 thousand for the quarters ended December 31, 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 December 31, 2025 December 31, 2024 Average Balance Interest Yield/ Rate(4) Average Balance Interest Yield/ Rate(4) Assets: Cash and Fed funds sold $ 288,987 $ 11,490 3.98 % $ 283,353 $ 13,970 4.93 % Securities(1) 157,033 6,309 4.02 142,744 5,098 3.57 Loans: Commercial real estate 1,849,502 115,827 6.18 1,905,973 112,804 5.82 Residential real estate 36,788 2,223 6.04 47,767 2,978 6.23 Construction 182,440 14,322 7.74 162,180 12,197 7.40 Commercial business 554,862 44,205 7.86 514,800 42,006 8.03 Consumer 70,186 4,092 5.83 41,869 2,847 6.80 Total loans 2,693,778 180,669 6.62 2,672,589 172,832 6.36 Federal Home Loan Bank stock 5,000 398 7.95 5,666 477 8.41 Total earning assets 3,144,798 $ 198,866 6.24 % 3,104,352 $ 192,377 6.09 % Other assets 92,684 92,885 Total assets $ 3,237,482 $ 3,197,237 Liabilities and shareholders' equity: Interest bearing liabilities: NOW $ 100,341 $ 374 0.37 % $ 96,091 $ 175 0.18 % Money market 908,304 34,149 3.76 851,283 34,767 4.08 Savings 92,637 2,728 2.95 90,587 2,785 3.07 Time 1,291,785 55,577 4.30 1,335,680 63,531 4.76 Total interest bearing deposits 2,393,067 92,828 3.88 2,373,641 101,258 4.27 Borrowed Money 138,305 6,564 4.75 159,320 7,454 4.68 Total interest bearing liabilities 2,531,372 $ 99,392 3.93 % 2,532,961 $ 108,712 4.29 % Noninterest bearing deposits 368,777 332,611 Other liabilities 51,722 60,464 Total liabilities 2,951,871 2,926,036 Shareholders' equity 285,611 271,201 Total liabilities and shareholders' equity $ 3,237,482 $ 3,197,237 Net interest income(2) $ 99,474 $ 83,665 Interest rate spread 2.31 % 1.80 % Net Interest Margin(3) 3.16 % 2.70 % (1) Average balances and yields for securities are based on amortized cost. (2) The adjustment for securities and loans taxable equivalency amounted to $539 thousand and $383 thousand for the year ended December 31, 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. Christopher R. Gruseke, Chief Executive Officer Courtney E. Sacchetti, Executive Vice President and Chief Financial Officer Bankwell Financial Group (203) 652-0166 [email protected] Source: Bankwell Financial Group, Inc