Bankwell Financial Group, Inc. (NASDAQ:BWFG) reported GAAP net
income of $5.7 million, or $0.71 per share, for the first quarter
of 2021, versus $1.4 million, or $0.17 per share, for the same
period in 2020. Pre-tax, pre-provision net revenue ("PPNR")1 grew
48% to $7.0 million compared to the same period in 2020. Results
include a $0.9 million one-time federal payroll tax credit for
small businesses impacted by COVID-192.
The Company's Board of Directors declared a $0.14 per share cash
dividend, payable May 24, 2021 to shareholders of record on May 14,
2021.
We recommend reading this earnings release in conjunction with
the First Quarter 2021 Investor Presentation, located at
http://investor.mybankwell.com/Presentations and included as an
exhibit to our April 28, 2021 Current Report on Form 8-K.
Notes Bankwell Financial Group President and CEO, Christopher R.
Gruseke:
"I am pleased to announce Bankwell’s financial results for the
first quarter of 2021. Our team made meaningful progress in
virtually all aspects of our business. Loans grew by 4% on
originations of $158 million and we continue to generate quality
C&I business. Core commercial deposits grew by 8.6%, or $63
million as we steadily improve both the mix and the cost of our
deposits. We have also successfully implemented many of our
previously announced expense reduction initiatives. The cumulative
impact of the multiple successes we’ve experienced was to grow
pre-tax, pre-provision net revenue by 48% versus the previous
year’s first quarter and to deliver a return on average equity of
12.67%. Importantly, we look to further improving profitability as
the year proceeds.
"I’d like to thank all of my colleagues who have worked
tirelessly to achieve these results amidst such challenging
circumstances. On behalf of everyone at Bankwell, I also wish to
acknowledge our gratitude for all of our health care workers and
scientists who have persevered in an effort to bring our health
crisis to an end."
First Quarter 2021 Highlights:
- PPNR of $7.0 million ($6.1 million excluding the one-time
payroll tax credit), a 48% increase compared to the same period in
2020.
- Return on average assets was 1.02% and return on average equity
was 12.67%.
- Resumption of SBA loan sales with gains of $0.5 million
compared to no sales for the quarter ended March 31, 2020.
- Total gross loans were $1.7 billion, growing $63.2 million, or
4%, compared to December 31, 2020, excluding PPP loans.
- Total deposits were $1.9 billion compared to $1.8 billion at
December 31, 2020.
- Noninterest bearing deposits increased by $112.5 million to 15%
of total deposits compared to 10% at March 31, 2020.
- The cost of deposits decreased approximately 10 basis points to
0.67% when compared to the quarter ended December 31, 2020.
- The Bank's loan-to-deposit ratio was 89.0%, reflecting the
above-mentioned increase in deposits.
- Investment securities totaled $101.6 million and represent 5%
of total assets.
- Tangible book value per share rose to $23.99 compared to $22.43
at December 31, 2020, benefiting from strong operating performance
and favorable marks on interest rate swaps used to hedge interest
rate risk.
- Shares issued and outstanding were 7,908,630, reflecting
repurchases of 65,626 shares of common stock at a weighted average
price of $21.66 during the quarter ended March 31, 2021.
- Subsequent to March 31, 2021, the Company committed to retire
$10 million of existing subordinated debt on May 15, 2021.
Earnings and Performance
Revenues (net interest income plus noninterest income) for the
quarter ended March 31, 2021 were $16.6 million, versus $14.4
million for the quarter ended March 31, 2020. The increase was
primarily attributable to lower interest expense on deposits,
partially offset by a decrease in interest and fees on loans.
Revenues also benefited from the aforementioned one-time federal
payroll tax credit for COVID-19 and from the resumption of SBA loan
sales.
Net income for the quarter ended March 31, 2021 was $5.7
million, versus $1.4 million for the quarter ended March 31, 2020.
The increase in net income was impacted by the aforementioned
increases in revenues.
Basic and diluted earnings per share were $0.72 and $0.71,
respectively, for the quarter ended March 31, 2021 compared to
basic and diluted earnings per share of $0.17 each for the quarter
ended March 31, 2020.
The net interest margin (fully taxable equivalent basis) for the
quarters ended March 31, 2021 and March 31, 2020 was 2.74% and
2.98%, respectively. The decrease in net interest margin was
primarily due to excess liquidity.
Financial Condition
Assets totaled $2.2 billion at March 31, 2021, compared to
assets of $2.3 billion at December 31, 2020. The decrease in assets
is primarily due to a decrease in excess liquidity, partially
offset by an increase in loans. Gross loans totaled $1.7 billion at
March 31, 2021, an increase of $47.6 million compared to December
31, 2020. Excluding PPP loans, gross loans increased by $63.2
million at March 31, 2021 when compared to December 31, 2020.
Deposits totaled $1.9 billion at March 31, 2021, compared to
deposits of $1.8 billion at December 31, 2020.
Capital
Shareholders’ equity totaled $187.9 million as of March 31,
2021, an increase of $11.3 million compared to December 31, 2020,
primarily a result of (i) a $7.7 million favorable impact to
accumulated other comprehensive income driven by fair value marks
related to hedge positions involving interest rate swaps and (ii)
net income for the quarter ended March 31, 2021 of $5.7 million.
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 $1.1 million and common stock repurchases of $1.4
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, visit www.mybankwell.com.
This press release may contain certain forward-looking
statements about the Company. Forward-looking statements include
statements regarding anticipated future events and can be
identified by the fact that they do not relate strictly to
historical or current facts. They often include words such as
“believe,” “expect,” “anticipate,” “estimate,” and “intend” or
future or conditional verbs such as “will,” “would,” “should,”
“could,” or “may.” Forward-looking statements, by their nature, are
subject to risks and uncertainties. Certain factors that could
cause actual results to differ materially from expected results
include, but are not limited to, increased competitive pressures,
changes in the interest rate environment, general economic
conditions or conditions within the securities markets, uncertain
impacts of, or additional changes in, monetary, fiscal or tax
policy to address the impact of COVID-19, prolonged measures to
contain the spread of COVID-19 or premature easing of such
containment measures, either of which could further exacerbate the
effects on the Company’s business and results of operations, and
legislative and regulatory changes that could adversely affect the
business in which the Company and its subsidiaries are engaged.
Non-GAAP Financial Measures
In addition to evaluating the Company's financial performance in
accordance with U.S. generally accepted accounting principles
("GAAP"), management may evaluate certain non-GAAP financial
measures, such as the efficiency ratio. A computation and
reconciliation of certain non-GAAP financial measures used for
these purposes is contained in the accompanying Reconciliation of
GAAP to Non-GAAP Measures tables. We believe that providing certain
non-GAAP financial measures provides investors with information
useful in understanding our financial performance, our performance
trends and financial position. For example, the Company believes
that the efficiency ratio is useful in the assessment of financial
performance, including noninterest expense control. The Company
believes that tangible common equity and tangible book value per
share are useful to evaluate the relative strength of the Company's
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.
_____________________ 1 Pre-tax, pre-provision net revenue is a
non-GAAP metric and excludes provision for loan losses and income
tax expense. 2 The payroll tax credit is part of the Employee
Retention Credit (“ERC”) program under the Coronavirus Aid, Relief
and Economic Security Act (“CARES Act”).
BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(Dollars in thousands)
March 31,
December 31,
March 31,
2021
2020
2020
ASSETS
Cash and due from banks
$
351,194
$
405,340
$
203,569
Federal funds sold
10,811
4,258
6,427
Cash and cash equivalents
362,005
409,598
209,996
Investment securities
Marketable equity securities, at fair
value
2,178
2,207
2,289
Available for sale investment securities,
at fair value
83,218
88,605
82,342
Held to maturity investment securities, at
amortized cost
16,225
16,078
16,252
Total investment securities
101,621
106,890
100,883
Loans receivable (net of allowance for
loan losses of $20,545, $21,009, and $16,686 at March 31, 2021,
December 31, 2020, and March 31, 2020, respectively)
1,650,127
1,601,672
1,602,146
Accrued interest receivable
7,306
6,579
5,867
Federal Home Loan Bank stock, at cost
6,446
7,860
6,507
Premises and equipment, net
33,386
21,762
27,835
Bank-owned life insurance
42,881
42,651
41,926
Goodwill
2,589
2,589
2,589
Other intangible assets
67
76
196
Deferred income taxes, net
8,908
11,300
10,009
Other assets
29,131
42,770
45,671
Total assets
$
2,244,467
$
2,253,747
$
2,053,625
LIABILITIES AND SHAREHOLDERS’
EQUITY
Liabilities
Deposits
Noninterest bearing deposits
$
280,947
$
270,235
$
168,448
Interest bearing deposits
1,578,861
1,557,081
1,512,684
Total deposits
1,859,808
1,827,316
1,681,132
Advances from the Federal Home Loan
Bank
125,000
175,000
125,000
Subordinated debentures
25,271
25,258
25,220
Accrued expenses and other liabilities
46,445
49,571
52,059
Total liabilities
2,056,524
2,077,145
1,883,411
Shareholders’ equity
Common stock, no par value
120,398
121,338
119,953
Retained earnings
75,418
70,839
69,595
Accumulated other comprehensive loss
(7,873
)
(15,575
)
(19,334
)
Total shareholders’ equity
187,943
176,602
170,214
Total liabilities and shareholders’
equity
$
2,244,467
$
2,253,747
$
2,053,625
BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(Dollars in thousands, except share
data)
For the Quarter Ended
March 31,
December 31,
March 31,
2021
2020
2020
Interest and dividend income
Interest and fees on loans
$
17,900
$
18,194
$
18,985
Interest and dividends on securities
769
835
825
Interest on cash and cash equivalents
108
117
286
Total interest and dividend income
18,777
19,146
20,096
Interest expense
Interest expense on deposits
3,114
3,557
5,709
Interest expense on borrowings
1,008
1,285
1,101
Total interest expense
4,122
4,842
6,810
Net interest income
14,655
14,304
13,286
(Credit) provision for loan
losses
(296
)
709
3,185
Net interest income after provision for
loan losses
14,951
13,595
10,101
Noninterest income
Gains and fees from sales of loans
513
16
—
Bank owned life insurance
231
241
243
Service charges and fees
199
210
217
Other
1,013
154
612
Total noninterest income
1,956
621
1,072
Noninterest expense
Salaries and employee benefits
4,769
5,453
5,380
Occupancy and equipment
2,406
4,516
1,909
Professional services
587
591
711
Data processing
512
1,658
536
FDIC insurance
403
262
70
Director fees
317
331
295
Marketing
(9
)
118
162
Other
653
774
596
Total noninterest expense
9,638
13,703
9,659
Income before income tax
expense
7,269
513
1,514
Income tax expense
1,579
177
151
Net income
$
5,690
$
336
$
1,363
Earnings Per Common Share:
Basic
$
0.72
$
0.04
$
0.17
Diluted
$
0.71
$
0.04
$
0.17
Weighted Average Common Shares
Outstanding:
Basic
7,758,540
7,726,926
7,750,135
Diluted
7,800,777
7,728,206
7,778,762
Dividends per common share
$
0.14
$
0.14
$
0.14
BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(unaudited)
For the Quarter Ended
March 31,
December 31,
March 31,
2021
2020
2020
Performance ratios:
Return on average assets(1)
1.02
%
0.06
%
0.29
%
Return on average stockholders'
equity(1)
12.67
%
0.75
%
3.03
%
Return on average tangible common
equity(1)
12.86
%
0.76
%
3.07
%
Net interest margin
2.74
%
2.66
%
2.98
%
Efficiency ratio(2)
58.0
%
91.2
%
67.1
%
Net loan charge-offs as a % of average
loans
0.01
%
—
%
—
%
Dividend payout ratio(3)
19.72
%
350.00
%
82.35
%
(1) 2020 performance ratios were
negatively impacted by incremental COVID-19 pandemic related loan
loss reserves and $3.9 million in one-time charges related to
office consolidation, contract termination and employee severance
costs recognized in the fourth quarter of 2020.
(2) Efficiency ratio is defined as
noninterest expense, less other real estate owned expenses and
amortization of intangible assets, divided by our operating
revenue, which is equal to net interest income plus noninterest
income excluding gains and losses on sales of securities and gains
and losses on other real estate owned. In our judgment, the
adjustments made to operating revenue allow investors and analysts
to better assess our operating expenses in relation to our core
operating revenue by removing the volatility that is associated
with certain one-time items and other discrete items that are
unrelated to our core business.
(3) The dividend payout ratio is
calculated by dividing dividends per share by earnings per
share.
As of
March 31,
December 31,
March 31,
2021
2020
2020
Capital ratios:
Total Common Equity Tier 1 Capital to
Risk-Weighted Assets(1)
11.02
%
11.06
%
12.14
%
Total Capital to Risk-Weighted
Assets(1)
12.17
%
12.28
%
13.13
%
Tier I Capital to Risk-Weighted
Assets(1)
11.02
%
11.06
%
12.14
%
Tier I Capital to Average Assets(1)
8.82
%
8.44
%
10.84
%
Tangible common equity to tangible
assets
8.27
%
7.73
%
8.16
%
Tangible book value per common
share(2)
$
23.99
$
22.43
$
21.69
(1) Represents Bank ratios. Current period
capital ratios are preliminary subject to finalization of the FDIC
Call Report.
(2) Excludes unvested restricted shares of
186,485, 163,369, and 154,012 as of March 31, 2021, December 31,
2020, and March 31, 2020, respectively.
BANKWELL FINANCIAL GROUP, INC.
ASSET QUALITY (unaudited)
(Dollars in thousands)
For the Quarter Ended
March 31,
December 31,
March 31,
2021
2020
2020
Allowance for loan losses:
Balance at beginning of period
$
21,009
$
20,372
$
13,509
Charge-offs:
Commercial real estate
(163
)
—
—
Commercial business
—
(75
)
(8
)
Consumer
(14
)
(11
)
(2
)
Total charge-offs
(177
)
(86
)
(10
)
Recoveries:
Commercial business
—
14
1
Consumer
9
—
1
Total recoveries
9
14
2
Net loan charge-offs
(168
)
(72
)
(8
)
(Credit) provision for loan losses
(296
)
709
3,185
Balance at end of period
$
20,545
$
21,009
$
16,686
As of
March 31,
December 31,
March 31,
2021
2020
2020
Asset quality:
Nonaccrual loans
Residential real estate
$
1,289
$
1,492
$
1,532
Commercial real estate
19,277
21,093
5,339
Commercial business
1,803
1,834
3,783
Construction
8,997
8,997
—
Total nonaccrual loans
31,366
33,416
10,654
Other real estate owned
—
—
—
Total nonperforming assets
$
31,366
$
33,416
$
10,654
Nonperforming loans as a % of total
loans
1.87
%
2.06
%
0.66
%
Nonperforming assets as a % of total
assets
1.40
%
1.48
%
0.52
%
Allowance for loan losses as a % of total
loans
1.23
%
1.29
%
1.03
%
Allowance for loan losses as a % of
nonperforming loans
65.50
%
62.87
%
156.62
%
Total nonaccrual loans declined $2.1 million to $31.4 million as
of March 31, 2021 when compared to December 31, 2020. The Company
individually analyzed all existing COVID-19 deferrals and COVID-19
impacted loans for collectability and impairment as of March 31,
2021. Nonperforming assets as a percentage of total assets was
1.40% at March 31, 2021, down from 1.48% at December 31, 2020. The
allowance for loan losses at March 31, 2021 was $20.5 million,
representing 1.23% of total loans.
BANKWELL FINANCIAL GROUP, INC.
LOAN & DEPOSIT PORTFOLIO
(unaudited)
(Dollars in thousands)
March 31,
December 31,
Period End Loan Composition
2021
2020
% Change
Residential Real Estate
$
109,752
$
113,557
(3.4
)%
Commercial Real Estate(1)
1,183,848
1,148,383
3.1
Construction
103,099
87,007
18.5
Total Real Estate Loans
1,396,699
1,348,947
3.5
Commercial Business(2)
267,698
276,601
(3.2
)
Consumer
8,818
79
N/M(3)
Total Loans
$
1,673,215
$
1,625,627
2.9
%
(1) Includes owner occupied commercial
real estate.
(2) Includes $19.2 million and $34.8
million of PPP loans at March 31, 2021 and December 31, 2020,
respectively.
(3) Metric not meaningful.
Gross loans totaled $1.7 billion at March 31, 2021, an increase
of $47.6 million compared to December 31, 2020. Excluding PPP
loans, gross loans increased by $63.2 million, or 4%, at March 31,
2021 when compared to December 31, 2020.
March 31,
December 31,
Period End Deposit Composition
2021
2020
% Change
Noninterest bearing demand
$
280,947
$
270,235
4.0
%
NOW
118,489
101,737
16.5
Money Market
751,852
669,364
12.3
Savings
164,559
158,750
3.7
Time
543,961
627,230
(13.3
)
Total Deposits
$
1,859,808
$
1,827,316
1.8
%
Total deposits were $1.9 billion at March 31, 2021, compared to
$1.8 billion at December 31, 2020, an increase of $32.5 million, or
1.8%.
BANKWELL FINANCIAL GROUP, INC.
NONINTEREST INCOME AND EXPENSE
(unaudited)
(Dollars in thousands)
For the Quarter Ended
Noninterest income
March 31,
December 31,
March 31,
Mar 21 vs. Dec 20 %
Mar 21 vs. Mar 20 %
2021
2020
2020
Change
Change
Gains and fees from sales of loans
$
513
$
16
$
—
N/M(1)
N/A
Bank owned life insurance
231
241
243
(4.1
)
(4.9
)
Service charges and fees
199
210
217
(5.2
)
(8.3
)
Other
1,013
154
612
557.8
65.5
Total noninterest income
$
1,956
$
621
$
1,072
215.0
%
82.5
%
(1) Metric not meaningful.
Noninterest income increased by $0.9 million to $2.0 million for
the quarter ended March 31, 2021 compared to the quarter ended
March 31, 2020.
The increase in noninterest income was driven by resumed SBA
loan sales, totaling $0.5 million for the quarter ended March 31,
2021. In addition, the increase was impacted by a one-time federal
payroll tax credit for COVID-19 of $0.9 million, partially offset
by $0.4 million of non-recurring interest rate swap fees recognized
in the quarter ended March 31, 2020.
For the Quarter Ended
Noninterest expense
March 31,
December 31,
March 31,
Mar 21 vs. Dec 20 %
Mar 21 vs. Mar 20 %
2021
2020
2020
Change
Change
Salaries and employee benefits
$
4,769
$
5,453
$
5,380
(12.5
)%
(11.4
)%
Occupancy and equipment
2,406
4,516
1,909
(46.7
)
26.0
Professional services
587
591
711
(0.7
)
(17.4
)
Data processing
512
1,658
536
(69.1
)
(4.5
)
FDIC insurance
403
262
70
53.8
475.7
Director fees
317
331
295
(4.2
)
7.5
Marketing
(9
)
118
162
(107.6
)
(105.6
)
Other
653
774
596
(15.6
)
9.6
Total noninterest expense
$
9,638
$
13,703
$
9,659
(29.7
)%
(0.2
)%
Noninterest expense declined slightly, from $9.7 million for the
quarter ended March 31, 2020, to $9.6 million for the quarter ended
March 31, 2021. The decrease in noninterest expense was primarily
driven by a decline in salaries and employee benefits and marketing
expense, partially offset by an increase in occupancy and equipment
expense and FDIC insurance expense. The decrease in noninterest
expense for the quarter ended March 31, 2021 when compared to the
quarter ended December 31, 2020 was primarily due to $3.9 million
in one-time charges recognized during the fourth quarter of 2020.
These one-time charges impacted salaries and employee benefits,
occupancy and equipment expense and data processing expense.
Salaries and employee benefits totaled $4.8 million for the
quarter ended March 31, 2021, a decrease of $0.6 million when
compared to the same period in 2020. The decrease in salaries and
employee benefits was primarily driven by a decrease in full time
equivalent employees as a direct result of the Voluntary Early
Retirement Incentive Plan offered to eligible employees and other
employee actions taken during the fourth quarter of 2020. Full time
equivalent employees totaled 123 at March 31, 2021 compared to 154
for the same period in 2020. Salaries and employee benefits were
also favorably impacted as higher loan originations enabled the
bank to defer a greater amount of expenses.
Occupancy and equipment expense totaled $2.4 million for the
quarter ended March 31, 2021, an increase of $0.5 million when
compared to the same period in 2020. The increase in occupancy and
equipment expense was primarily due to additional cleaning costs
associated with precautions taken to prevent the spread of
COVID-19.
FDIC insurance expense totaled $0.4 million for the quarter
ended March 31, 2021, an increase of $0.3 million when compared to
the same period in 2020. The increase in FDIC insurance expense was
due to the application of available FDIC insurance credits in the
first quarter of 2020.
BANKWELL FINANCIAL GROUP, INC.
RECONCILIATION OF GAAP TO NON-GAAP
MEASURES (unaudited)
(Dollars in thousands, except share
data)
As of
March 31,
December 31,
March 31,
Computation of Tangible Common Equity
to Tangible Assets
2021
2020
2020
Total Equity
$
187,943
$
176,602
$
170,214
Less:
Goodwill
2,589
2,589
2,589
Other intangibles
67
76
196
Tangible Common Equity
$
185,287
$
173,937
$
167,429
Total Assets
$
2,244,467
$
2,253,747
$
2,053,625
Less:
Goodwill
2,589
2,589
2,589
Other intangibles
67
76
196
Tangible Assets
$
2,241,811
$
2,251,082
$
2,050,840
Tangible Common Equity to Tangible
Assets
8.27
%
7.73
%
8.16
%
As of
March 31,
December 31,
March 31,
Computation of Tangible Book Value per
Common Share
2021
2020
2020
Total shareholders' equity
$
187,943
$
176,602
$
170,214
Less:
Preferred stock
—
—
—
Common shareholders' equity
$
187,943
$
176,602
$
170,214
Less:
Goodwill
2,589
2,589
2,589
Other intangibles
67
76
196
Tangible common shareholders'
equity
$
185,287
$
173,937
$
167,429
Common shares
7,908,630
7,919,278
7,871,419
Less:
Shares of unvested restricted stock
186,485
163,369
154,012
Common shares less unvested restricted
stock
7,722,145
7,755,909
7,717,407
Book value per share
$
24.34
$
22.77
$
22.06
Less:
Effects of intangible assets
$
0.34
$
0.34
$
0.36
Tangible Book Value per Common
Share
$
23.99
$
22.43
$
21.69
BANKWELL FINANCIAL GROUP, INC.
RECONCILIATION OF GAAP TO NON-GAAP
MEASURES (unaudited) - Continued
(Dollars in thousands)
For the Quarter Ended
March 31,
December 31,
March 31,
Computation of Efficiency Ratio
2021
2020
2020
Noninterest expense
$
9,638
$
13,703
$
9,659
Less:
Amortization of intangible assets
9
84
18
Other real estate owned expenses
—
—
—
Adjusted noninterest expense
$
9,629
$
13,619
$
9,641
Net interest income
$
14,655
$
14,304
$
13,286
Noninterest income
1,956
621
1,072
Less:
Net gain on sale of available for sale
securities
—
—
—
Gain (loss) on sale of other real estate
owned, net
—
—
—
Operating revenue
$
16,611
$
14,925
$
14,358
Efficiency ratio
58.0
%
91.2
%
67.1
%
For the Quarter Ended
March 31,
December 31,
March 31,
Computation of Return on Average
Tangible Common Equity
2021
2020
2020
Net Income Attributable to Common
Shareholders
$
5,690
$
336
$
1,363
Total average shareholders' equity
$
182,058
$
178,439
$
181,127
Less:
Average Goodwill
2,589
2,589
2,589
Average Other intangibles
73
153
208
Average tangible common equity
$
179,396
$
175,697
$
178,330
Annualized Return on Average Tangible
Common Equity
12.86
%
0.76
%
3.07
%
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, 2021
March 31, 2020
Average
Yield/
Average
Yield/
Balance
Interest
Rate (5)
Balance
Interest
Rate (5)
Assets:
Cash and Fed funds sold
$
401,900
$
108
0.11
%
$
73,497
$
286
1.56
%
Securities(1)
101,176
788
3.11
98,566
775
3.15
Loans:
Commercial real estate
1,129,224
12,731
4.51
1,108,709
13,024
4.65
Residential real estate
112,053
964
3.44
143,826
1,357
3.77
Construction(2)
94,075
885
3.76
100,437
1,215
4.78
Commercial business
294,756
3,271
4.44
258,848
3,386
5.18
Consumer
5,039
49
3.94
156
3
8.37
Total loans
1,635,147
17,900
4.38
1,611,976
18,985
4.66
Federal Home Loan Bank stock
6,508
31
1.96
7,325
103
5.65
Total earning assets
2,144,731
$
18,827
3.51
%
1,791,364
$
20,149
4.45
%
Other assets
113,561
111,585
Total assets
$
2,258,292
$
1,902,949
Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW
$
101,057
$
43
0.17
%
$
67,925
$
28
0.17
%
Money market
736,659
950
0.52
438,588
1,492
1.37
Savings
160,347
125
0.32
185,478
672
1.46
Time
611,153
1,996
1.32
640,580
3,517
2.21
Total interest bearing deposits
1,609,216
3,114
0.78
1,332,571
5,709
1.72
Borrowed Money
152,485
1,008
2.64
172,464
1,101
2.53
Total interest bearing liabilities
1,761,701
$
4,122
0.95
%
1,505,035
$
6,810
1.82
%
Noninterest bearing deposits
269,863
179,066
Other liabilities
44,670
37,721
Total liabilities
2,076,234
1,721,822
Shareholders' equity
182,058
181,127
Total liabilities and shareholders'
equity
$
2,258,292
$
1,902,949
Net interest income(3)
$
14,705
$
13,339
Interest rate spread
2.56
%
2.63
%
Net interest margin(4)
2.74
%
2.98
%
(1) Average balances and yields for
securities are based on amortized cost.
(2) Includes commercial and residential
real estate construction.
(3) The adjustment for securities and
loans taxable equivalency amounted to $50 thousand and $53 thousand
for the quarters ended March 31, 2021 and 2020, respectively.
(4) Annualized net interest income as a
percentage of earning assets.
(5) Yields are calculated using the
contractual day count convention for each respective product
type.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210428006115/en/
Bankwell Financial Group Christopher R. Gruseke, (203) 652-0166
President and Chief Executive Officer
Penko Ivanov, (203) 652-0166 Executive Vice President and Chief
Financial Officer
Bankwell Financial (NASDAQ:BWFG)
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