Bankwell Financial Group Reports Third Consecutive Quarter of Record Earnings

Bankwell Financial GroupGroup (OTCBB:BWFG), parent company of Bankwell Bank, today reported Net Income of $1.319 million for the third quarter of 2013, a 665% increase over the $172,000 earned during the same period of 2012. Net Income for the first nine months of 2013 was $3.8 million, a 336% increase from the prior year period. The third quarter earnings represent the third consecutive quarter of record earnings -- a 27% increase over the second quarter of 2013 (excluding securities gains taken in the second quarter of 2013).

Earnings per share hit a record high of $1.01, up from $0.43 per share at year-end 2012. Tangible book value also reached an historic level of $15.26 per share.

Peyton R. Patterson, President and CEO of Bankwell Financial Group, stated, “The Company’s disciplined focus on its financial performance and strong balance sheet growth continued to distinguish us from our peers.”

At September 30, 2013, total assets were $683.5 million, a $102 million or 18% increase over September 30, 2012. Loans outstanding continued to show strong momentum with loan originations a record high at $92 million for the quarter, a 22% increase over September 30, 2012. Credit quality remained excellent, with NPA’s to total assets dropping to a new low of 0.21%. Deposits also hit a record level at $544 million, an increase of $89 million or 20%, year over year.

Overall revenues were up $5.5 million to $23.6 million through the third quarter, representing a 30% increase over the prior year. Contributing to the significant revenue gains was our strong margin of 3.99%, coupled with the steady increases in deposits and loans outstanding. As a result, net interest income increased by $3.3 million over the 9-month period. Non-interest income growth has also contributed to the steady revenue gains, which now represents 12% of total revenues, up from 1.4% at year-end. Through nine months, non-interest income totaled $2.9 million, versus $253 thousand a year ago.

Commenting on current Bank initiatives, Ms. Patterson added, “We are pleased to announce the recent closing of The Wilton Bank acquisition which brings $65 million in new deposits and $28 million in loans outstanding, respectively. Including The Wilton Bank, our total assets increase to approximately $755 million. We project the acquisition of The Wilton Bank to be accretive to earnings in the first year of the combined operations, excluding one-time merger related expenses. Additionally in the third quarter, a premier institutional investor contributed $6.2 million in capital to the Company, improving our Tangible Common Equity ratio from 7.58% to 8.36%.”

About Bankwell Financial Group, Inc.

Bankwell Financial Group, Inc. is the registered bank holding company that has Bankwell Bank as its subsidiary. The Company was rebranded in September 2013, and was formerly BNC Financial Group. The Bank is a community-based, full-service Connecticut chartered commercial bank that was founded in 2002 and serves the banking and lending needs of residents and businesses throughout Fairfield County.

Forward looking statement

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 securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and its subsidiaries are engaged.