Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $3.1 million or $0.41 per share for the third quarter of 2016, versus $2.3 million or $0.31 per share for the same period last year.
The Company's Board of Directors declared a $0.07 per share cash dividend, payable November 28, 2016 to shareholders of record on November 18, 2016, representing a 40% increase when compared to the last quarter.
Third Quarter 2016 Highlights:
- Total revenue (net interest income plus non-interest income) reached $13.3 million.
- Diluted earnings per share were $0.41; an increase of 32% compared to the third quarter of 2015.
- Tax equivalent net interest margin was 3.57% for the third quarter of 2016.
- Total non-interest income was $0.8 million, which is 6% of total revenue.
- The efficiency ratio was 55.7%, compared to 57.9% in the third quarter of 2015.
- The tangible common equity ratio and tangible book value per share were 8.80% and $18.57, respectively.
- Total gross loans exceeded $1.3 billion and total assets approached $1.6 billion.
- The allowance for loan losses was $17.3 million and represents 1.30% of total loans.
- Nonperforming assets dropped to 0.25% of total assets.
- Investment securities totaled $99.7 million and represents 6% of total assets.
- Total deposits exceeded $1.2 billion.
Notes Bankwell Financial Group President and CEO, Christopher R. Gruseke:
“Bankwell has delivered another record quarter. We continue to experience strong organic growth; our loan portfolio increased at an annualized rate of 15% during the third quarter. Our balance sheet, meanwhile, remains unblemished with non-performing assets as a percentage of total assets of only 0.25%. We continue to extract operational efficiencies wherever we can and have improved our efficiency ratio to an outstanding 55.7% for the quarter.”
“Finally, I am pleased to announce that, as a result of our continued strong financial performance, and as part of our commitment to deliver returns for our shareholders, we are increasing our quarterly dividend by 40%.”
Earnings
Net income for the quarter ended September 30, 2016 was $3.1 million, an increase of 39% compared to the quarter ended September 30, 2015. Net income for the nine months ended September 30, 2016 was $9.0 million, an increase of 41% compared to the nine months ended September 30, 2015. Revenues (net interest income plus non-interest income) for the quarter ended September 30, 2016 were $13.3 million, an increase of 10% compared to the quarter ended September 30, 2015. Revenues for the nine months ended September 30, 2016 were $38.1 million, an increase of 11% compared to the nine months ended September 30, 2015. Net interest income for the quarter ended September 30, 2016 was $12.5 million, an increase of 15% compared to the quarter ended September 30, 2015. Our strong net income, revenues and net interest income growth were fueled by continued earning asset growth.
Basic and diluted earnings per share for the quarter ended September 30, 2016 was $0.42 and $0.41, respectively, compared to $0.31 for the quarter ended September 30, 2015.
The Company continues to focus on expense control as indicated by our improving efficiency ratio. The Company’s efficiency ratio for the quarters ended September 30, 2016 and September 30, 2015 were 55.7% and 57.9%, respectively. The Company’s efficiency ratio for the nine months ended September 30, 2016 and September 30, 2015 were 56.8% and 62.2%, respectively.
Noninterest Income and Expense
Noninterest income decreased $461 thousand or 38% to $0.8 million for the three months ended September 30, 2016 compared to the three months ended September 30, 2015 and decreased $369 thousand or 14% to $2.3 million for the nine months ended September 30, 2016 compared to the nine months ended September 30, 2015. The decrease in noninterest income was primarily driven by a reduction in the gains and fees from the sales of loans for the three and nine months ended September 30, 2016 when compared to the prior periods.
Noninterest expense increased $323 thousand or 5% for the three months ended September 30, 2016 compared to the three months ended September 30, 2015. The increase was primarily driven by an increase in professional services and salaries and employee benefits. Salaries and employee benefits increased $111 thousand or 3% for the three months ended September 30, 2016 compared to the three months ended September 30, 2015 as a result of an increase in full time equivalent employees. Professional services increased $182 thousand or 54% for the three months ended September 30, 2016 compared to the three months ended September 30, 2015 as a result of an increase in fees paid in relation to strategic initiatives.
Noninterest expense increased $286 thousand or 1% for the nine months ended September 30, 2016 compared to the nine months ended September 30, 2015. The increase was primarily driven by an increase in professional services and occupancy and equipment expense. Professional services increased $224 thousand or 22% for the nine months ended September 30, 2016 compared to the nine months ended September 30, 2015 as a result of an increase in fees paid in relation to strategic initiatives. Occupancy and equipment expense increased $206 thousand or 5% for the nine months ended September 30, 2016 compared to the nine months ended September 30, 2015 as a result of an increase in IT related expenses to support growth initiatives and rent expense related to the opening of the Norwalk Branch in March of 2015.
Financial Condition
Assets totaled $1.6 billion at September 30, 2016, an annualized increase of 24% compared to assets of $1.3 billion at December 31, 2015. This increase reflects strong organic loan growth. Total gross loans were $1.3 billion at September 30, 2016, an annualized increase of 21% compared to December 31, 2015. Commercial real estate loans have experienced the most significant growth, up by $119.5 million. Deposits increased to over $1.2 billion, an annualized increase of 22% over December 31, 2015.
Asset Quality
Asset quality remained exceptionally strong at September 30, 2016. Non-performing assets as a percentage of total assets was 0.25% at September 30, 2016, down from 0.38% at December 31, 2015. The allowance for loan losses at September 30, 2016 was $17.3 million, representing 1.30% of total loans.
Capital
Shareholders’ equity totaled $140.6 million as of September 30, 2016, an increase of $8.8 million compared to December 31, 2015, primarily a result of net income for the nine months ended September 30, 2016 of $9.0 million. As of September 30, 2016, the tangible common equity ratio and tangible book value per share were 8.80% and $18.57, respectively.
About Bankwell Financial Group
Bankwell is a commercial bank that serves the banking and lending needs of residents and businesses throughout Fairfield and New Haven Counties, CT. For more information about this press release, interested parties may contact Christopher R. Gruseke, President and Chief Executive Officer or Ernest J. Verrico Sr., Executive Vice President and Chief Financial Officer of Bankwell Financial Group at (203) 652-0166.
For more information, visit www.mybankwell.com.
This press release may contain certain forward-looking statements about the Company. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include 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.
| BANKWELL FINANCIAL GROUP, INC. | ||||||||||||||||||
| CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||||||||||||
| (Dollars in thousands, except share data) | ||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||
| 2016 | 2016 | 2016 | 2015 | 2015 | ||||||||||||||
| Assets | ||||||||||||||||||
| Cash and due from banks | $ | 94,731 | $ | 92,745 | $ | 69,512 | $ | 49,562 | $ | 86,830 | ||||||||
| Federal funds sold | 1,357 | 1,932 | 3,194 | 39,035 | - | |||||||||||||
| Cash and cash equivalents | 96,088 | 94,677 | 72,706 | 88,597 | 86,830 | |||||||||||||
| Held to maturity investment securities, at amortized cost | 16,909 | 16,959 | 17,010 | 10,226 | 11,282 | |||||||||||||
| Available for sale investment securities, at fair value | 82,752 | 83,837 | 91,528 | 40,581 | 45,023 | |||||||||||||
| Loans held for sale | 400 | - | - | - | 252 | |||||||||||||
Loans receivable (net of allowance for loan losses of $17,250, $16,100, $14,810, $14,169 and $13,720 at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively) | 1,305,065 | 1,256,949 | 1,177,905 | 1,129,748 | 1,108,439 | |||||||||||||
| Foreclosed real estate | 272 | 492 | 878 | 1,248 | 1,328 | |||||||||||||
| Accrued interest receivable | 4,499 | 4,708 | 4,370 | 4,071 | 3,831 | |||||||||||||
| Federal Home Loan Bank stock, at cost | 7,943 | 7,393 | 7,158 | 6,554 | 6,918 | |||||||||||||
| Premises and equipment, net | 10,314 | 10,659 | 10,830 | 11,163 | 11,505 | |||||||||||||
| Bank-owned life insurance | 24,277 | 24,103 | 23,929 | 23,755 | 23,578 | |||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | |||||||||||||
| Other intangible assets | 532 | 572 | 612 | 652 | 694 | |||||||||||||
| Deferred income taxes, net | 9,874 | 9,487 | 8,814 | 8,337 | 8,604 | |||||||||||||
| Other assets | 4,072 | 3,695 | 1,881 | 2,851 | 2,472 | |||||||||||||
| Total assets | $ | 1,565,586 | $ | 1,516,120 | $ | 1,420,210 | $ | 1,330,372 | $ | 1,313,345 | ||||||||
| Liabilities & Shareholders' Equity | ||||||||||||||||||
| Liabilities | ||||||||||||||||||
| Deposits | ||||||||||||||||||
| Noninterest-bearing | $ | 176,405 | $ | 178,917 | $ | 165,968 | $ | 164,553 | $ | 148,732 | ||||||||
| Interest-bearing | 1,040,537 | 1,001,674 | 927,766 | 882,389 | 876,957 | |||||||||||||
| Total deposits | 1,216,942 | 1,180,591 | 1,093,734 | 1,046,942 | 1,025,689 | |||||||||||||
| Advances from the Federal Home Loan Bank | 175,000 | 165,000 | 160,000 | 120,000 | 120,000 | |||||||||||||
| Subordinated debentures | 25,038 | 25,025 | 25,012 | 25,000 | 25,037 | |||||||||||||
| Accrued expenses and other liabilities | 8,034 | 8,382 | 6,856 | 6,661 | 6,831 | |||||||||||||
| Total liabilities | 1,425,014 | 1,378,998 | 1,285,602 | 1,198,603 | 1,177,557 | |||||||||||||
| Shareholders' equity | ||||||||||||||||||
Preferred stock, senior noncumulative perpetual, Series C, no par; 10,980 shares issued and outstanding at September 30, 2015 liquidation value of $1,000 per share. | - | - | - | - | 10,980 | |||||||||||||
Common stock, no par value; 10,000,000 shares authorized, 7,562,508, 7,544,458, 7,530,791, 7,516,291 and 7,252,429 shares issued at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively | 113,650 | 113,309 | 113,052 | 112,579 | 108,319 | |||||||||||||
| Retained earnings | 26,859 | 24,097 | 21,578 | 18,963 | 16,764 | |||||||||||||
| Accumulated other comprehensive income (loss) | 63 | (284 | ) | (22 | ) | 227 | (275 | ) | ||||||||||
| Total shareholders' equity | 140,572 | 137,122 | 134,608 | 131,769 | 135,788 | |||||||||||||
| Total liabilities and shareholders' equity | $ | 1,565,586 | $ | 1,516,120 | $ | 1,420,210 | $ | 1,330,372 | $ | 1,313,345 | ||||||||
| BANKWELL FINANCIAL GROUP, INC. | |||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (unaudited) | |||||||||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||||
| For the Quarter Ended | For the Nine Months Ended | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | |||||||||||||||
| 2016 | 2016 | 2016 | 2015 | 2015 | 2016 | 2015 | |||||||||||||||
| Interest and dividend income | |||||||||||||||||||||
| Interest and fees on loans | $ | 14,914 | $ | 13,970 | $ | 13,283 | $ | 13,382 | $ | 12,660 | $ | 42,167 | $ | 35,310 | |||||||
| Interest and dividends on securities | 688 | 711 | 684 | 490 | 493 | 2,083 | 1,474 | ||||||||||||||
| Interest on cash and cash equivalents | 31 | 30 | 37 | 36 | 33 | 98 | 62 | ||||||||||||||
| Total interest income | 15,633 | 14,711 | 14,004 | 13,908 | 13,186 | 44,348 | 36,846 | ||||||||||||||
| Interest expense | |||||||||||||||||||||
| Interest expense on deposits | 2,160 | 1,962 | 1,740 | 1,776 | 1,637 | 5,862 | 3,905 | ||||||||||||||
| Interest on borrowings | 946 | 870 | 866 | 896 | 632 | 2,682 | 1,389 | ||||||||||||||
| Total interest expense | 3,106 | 2,832 | 2,606 | 2,672 | 2,269 | 8,544 | 5,294 | ||||||||||||||
| Net interest income | 12,527 | 11,879 | 11,398 | 11,236 | 10,917 | 35,804 | 31,552 | ||||||||||||||
| Provision for loan losses | 1,219 | 1,301 | 646 | 354 | 1,489 | 3,166 | 2,876 | ||||||||||||||
| Net interest income after provision for loan losses | 11,308 | 10,578 | 10,752 | 10,882 | 9,428 | 32,638 | 28,676 | ||||||||||||||
| Noninterest income | |||||||||||||||||||||
| Service charges and fees | 241 | 235 | 245 | 258 | 234 | 721 | 675 | ||||||||||||||
| Bank owned life insurance | 174 | 174 | 174 | 178 | 182 | 522 | 549 | ||||||||||||||
| Gains and fees from sales of loans | 163 | 114 | 110 | 228 | 447 | 387 | 885 | ||||||||||||||
| Gain on sale of foreclosed real estate, net | - | 128 | - | - | - | 128 | - | ||||||||||||||
| Net gain on sale of available for sale securities | - | 92 | - | - | - | 92 | - | ||||||||||||||
| Other | 172 | 110 | 143 | 176 | 348 | 425 | 535 | ||||||||||||||
| Total noninterest income | 750 | 853 | 672 | 840 | 1,211 | 2,275 | 2,644 | ||||||||||||||
| Noninterest expense | |||||||||||||||||||||
| Salaries and employee benefits | 3,909 | 3,817 | 3,811 | 4,248 | 3,798 | 11,537 | 11,817 | ||||||||||||||
| Occupancy and equipment | 1,435 | 1,392 | 1,408 | 1,312 | 1,370 | 4,235 | 4,029 | ||||||||||||||
| Professional services | 521 | 370 | 366 | 414 | 339 | 1,257 | 1,033 | ||||||||||||||
| Data processing | 417 | 377 | 407 | 366 | 416 | 1,201 | 1,157 | ||||||||||||||
| Marketing | 242 | 263 | 139 | 278 | 288 | 644 | 707 | ||||||||||||||
| FDIC insurance | 177 | 168 | 169 | 185 | 166 | 514 | 487 | ||||||||||||||
| Director fees | 128 | 140 | 155 | 198 | 136 | 423 | 424 | ||||||||||||||
| Foreclosed real estate | 47 | 30 | 72 | 95 | 81 | 149 | 73 | ||||||||||||||
| Amortization of intangibles | 39 | 40 | 40 | 43 | 51 | 119 | 153 | ||||||||||||||
| Merger and acquisition related expenses | - | - | - | 2 | - | - | - | ||||||||||||||
| Other | 566 | 618 | 513 | 540 | 513 | 1,697 | 1,610 | ||||||||||||||
| Total noninterest expense | 7,481 | 7,215 | 7,080 | 7,681 | 7,158 | 21,776 | 21,490 | ||||||||||||||
| Income before income tax expense | 4,577 | 4,216 | 4,344 | 4,041 | 3,481 | 13,137 | 9,830 | ||||||||||||||
| Income tax expense | 1,437 | 1,320 | 1,353 | 1,423 | 1,228 | 4,110 | 3,418 | ||||||||||||||
| Net income | $ | 3,140 | $ | 2,896 | $ | 2,991 | $ | 2,618 | $ | 2,253 | $ | 9,027 | $ | 6,412 | |||||||
| Net income attributable to common shareholders | $ | 3,140 | $ | 2,896 | $ | 2,991 | $ | 2,575 | $ | 2,226 | $ | 9,027 | $ | 6,330 | |||||||
| Earnings Per Common Share: | |||||||||||||||||||||
| Basic | $ | 0.42 | $ | 0.38 | $ | 0.40 | $ | 0.35 | $ | 0.31 | $ | 1.20 | $ | 0.88 | |||||||
| Diluted | 0.41 | 0.38 | 0.40 | 0.35 | 0.31 | 1.19 | 0.87 | ||||||||||||||
| Weighted Average Common Shares Outstanding: | |||||||||||||||||||||
| Basic | 7,397,067 | 7,387,712 | 7,380,217 | 7,169,570 | 7,044,586 | 7,388,364 | 7,038,517 | ||||||||||||||
| Diluted | 7,488,752 | 7,467,954 | 7,431,747 | 7,234,431 | 7,059,117 | 7,459,283 | 7,057,450 | ||||||||||||||
| Dividends per common share | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | - | $ | 0.15 | $ | - | |||||||
| BANKWELL FINANCIAL GROUP, INC. | ||||||||||||||||||||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||||||||||||
| For the Quarter Ended | For the Nine Months Ended | |||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||||||
| 2016 | 2016 | 2016 | 2015 | 2015 | 2016 | 2015 | ||||||||||||||||||||
| Performance ratios: | ||||||||||||||||||||||||||
| Return on average assets | 0.85 | % | 0.82 | % | 0.89 | % | 0.78 | % | 0.69 | % | 0.85 | % | 0.74 | % | ||||||||||||
| Return on average stockholders' equity | 8.96 | % | 8.54 | % | 9.01 | % | 7.68 | % | 6.92 | % | 8.84 | % | 6.45 | % | ||||||||||||
| Return on average tangible common equity | 9.16 | % | 8.74 | % | 9.23 | % | 7.74 | % | 7.69 | % | 9.04 | % | 7.13 | % | ||||||||||||
| Net interest margin | 3.57 | % | 3.50 | % | 3.54 | % | 3.63 | % | 3.67 | % | 3.54 | % | 3.83 | % | ||||||||||||
| Efficiency ratio (1) | 55.7 | % | 57.1 | % | 57.7 | % | 62.4 | % | 57.9 | % | 56.8 | % | 62.2 | % | ||||||||||||
| Net loan charge-offs as a % of average loans | 0.01 | % | 0.00 | % | 0.00 | % | 0.01 | % | 0.00 | % | 0.01 | % | 0.00 | % | ||||||||||||
| As of | ||||||||||||||||||||||||||
| September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | ||||||||||||||||||||||
| Capital ratios: | ||||||||||||||||||||||||||
| Total Common Equity Tier 1 Capital to Risk-Weighted Assets (2) | 11.64 | % | 11.76 | % | 12.24 | % | 12.18 | % | 10.75 | % | ||||||||||||||||
| Total Capital to Risk-Weighted Assets (2) | 12.89 | % | 13.01 | % | 13.48 | % | 13.39 | % | 11.94 | % | ||||||||||||||||
| Tier I Capital to Risk-Weighted Assets (2) | 11.64 | % | 11.76 | % | 12.24 | % | 12.18 | % | 10.75 | % | ||||||||||||||||
| Tier I Capital to Average Assets (2) | 10.45 | % | 10.59 | % | 10.85 | % | 10.84 | % | 9.84 | % | ||||||||||||||||
| Tangible common equity to tangible assets | 8.80 | % | 8.85 | % | 9.27 | % | 9.68 | % | 9.28 | % | ||||||||||||||||
| Tangible book value per common share (3) | $ | 18.57 | $ | 18.12 | $ | 17.78 | $ | 17.43 | $ | 17.25 | ||||||||||||||||
| Asset quality: | ||||||||||||||||||||||||||
| Nonaccrual loans | $ | 3,644 | $ | 3,609 | $ | 3,398 | $ | 3,791 | $ | 2,367 | ||||||||||||||||
| Other real estate owned | 272 | 492 | 878 | 1,248 | 1,328 | |||||||||||||||||||||
| Total non-performing assets | $ | 3,916 | $ | 4,101 | $ | 4,276 | $ | 5,039 | $ | 3,695 | ||||||||||||||||
| Loans past due 90 days and still accruing | $ | - | $ | 105 | $ | 89 | $ | 1,105 | $ | 1,082 | ||||||||||||||||
| Nonperforming loans as a % of total loans | 0.27 | % | 0.28 | % | 0.28 | % | 0.33 | % | 0.21 | % | ||||||||||||||||
| Nonperforming assets as a % of total assets | 0.25 | % | 0.27 | % | 0.30 | % | 0.38 | % | 0.28 | % | ||||||||||||||||
| Allowance for loan losses as a % of total loans | 1.30 | % | 1.26 | % | 1.24 | % | 1.23 | % | 1.22 | % | ||||||||||||||||
| Allowance for loan losses as a % of nonperforming loans | 473.38 | % | 446.11 | % | 435.84 | % | 373.76 | % | 579.64 | % | ||||||||||||||||
| (1) Efficiency ratio is defined as noninterest expense, less merger and acquisition related expenses, other real estate owned expenses and amortization of intangible assets, divided by our operating revenue, which is equal to net interest income plus non-interest income excluding gains and losses on sales of securities and gains and losses on other real estate owned. In our judgment, the adjustments made to operating revenue allow investors and analysts to better assess our operating expenses in relation to our core operating revenue by removing the volatility that is associated with certain one-time items and other discrete items that are unrelated to our core business. |
| (2) Represents Bank ratios. |
| (3) Excludes preferred stock and unvested restricted stock awards of 160,708, 152,090, 138,423, 143,323 and 206,732 as of September 30,2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively. |
| BANKWELL FINANCIAL GROUP, INC. | |||||||||||||||
| LOAN & DEPOSIT PORTFOLIO (unaudited) | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||
| September 30, | June 30, | December 31, | QTD | YTD | |||||||||||
| Period End Loan Composition | 2016 | 2016 | 2015 | % Change | % Change | ||||||||||
| Residential Real Estate | $ | 178,996 | $ | 181,035 | $ | 177,184 | -1.1 | % | 1.0 | % | |||||
| Commercial Real Estate | 817,006 | 785,041 | 697,542 | 4.1 | % | 17.1 | % | ||||||||
| Construction | 104,915 | 98,266 | 82,273 | 6.8 | % | 27.5 | % | ||||||||
| Home equity | 15,050 | 15,987 | 15,926 | -5.9 | % | -5.5 | % | ||||||||
| Total Real Estate Loans | 1,115,967 | 1,080,329 | 972,925 | 3.3 | % | 14.7 | % | ||||||||
| Commercial Business | 208,600 | 194,067 | 172,853 | 7.5 | % | 20.7 | % | ||||||||
| Consumer | 1,660 | 2,553 | 1,735 | -35.0 | % | -4.3 | % | ||||||||
| Total Loans | $ | 1,326,227 | $ | 1,276,949 | $ | 1,147,513 | 3.9 | % | 15.6 | % | |||||
| September 30, | June 30, | December 31, | QTD | YTD | |||||||||||
| Period End Deposit Composition | 2016 | 2016 | 2015 | % Change | % Change | ||||||||||
| Noninterest-bearing demand | $ | 176,405 | $ | 178,917 | $ | 164,553 | -1.4 | % | 7.2 | % | |||||
| NOW | 55,679 | 61,411 | 51,008 | -9.3 | % | 9.2 | % | ||||||||
| Money Market | 326,805 | 331,148 | 296,838 | -1.3 | % | 10.1 | % | ||||||||
| Savings | 63,501 | 65,444 | 97,846 | -3.0 | % | -35.1 | % | ||||||||
| Time | 594,552 | 543,671 | 436,697 | 9.4 | % | 36.1 | % | ||||||||
| Total Deposits | $ | 1,216,942 | $ | 1,180,591 | $ | 1,046,942 | 3.1 | % | 16.2 | % | |||||
| BANKWELL FINANCIAL GROUP, INC. | |||||||||||||||
| NONINTEREST INCOME & EXPENSE - QTD (unaudited) | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||
| For the Quarter Ended | |||||||||||||||
| Noninterest income | September 30, | December 31, | September 30, | Sep 16 vs. Dec 15 | Sep 16 vs. Sep 15 | ||||||||||
| 2016 | 2015 | 2015 | % Change | % Change | |||||||||||
| Service charges and fees | $ | 241 | $ | 258 | $ | 234 | -6.6 | % | 3.0 | % | |||||
| Bank owned life insurance | 174 | 178 | 182 | -2.2 | % | -4.4 | % | ||||||||
| Gains and fees from sales of loans | 163 | 228 | 447 | -28.5 | % | -63.5 | % | ||||||||
| Other | 172 | 176 | 348 | -2.3 | % | -50.6 | % | ||||||||
| Total noninterest income | $ | 750 | $ | 840 | $ | 1,211 | -10.7 | % | -38.1 | % | |||||
| For the Quarter Ended | |||||||||||||||
| Noninterest expense | September 30, | December 31, | September 30, | Sep 16 vs. Dec 15 | Sep 16 vs. Sep 15 | ||||||||||
| 2016 | 2015 | 2015 | % Change | % Change | |||||||||||
| Salaries and employee benefits | $ | 3,909 | $ | 4,248 | $ | 3,798 | -8.0 | % | 2.9 | % | |||||
| Occupancy and equipment | 1,435 | 1,312 | 1,370 | 9.4 | % | 4.7 | % | ||||||||
| Professional services | 521 | 414 | 339 | 25.8 | % | 53.7 | % | ||||||||
| Data processing | 417 | 366 | 416 | 13.9 | % | 0.2 | % | ||||||||
| Marketing | 242 | 278 | 288 | -12.9 | % | -16.0 | % | ||||||||
| FDIC insurance | 177 | 185 | 166 | -4.3 | % | 6.6 | % | ||||||||
| Director fees | 128 | 198 | 136 | -35.4 | % | -5.9 | % | ||||||||
| Foreclosed real estate | 47 | 95 | 81 | -50.5 | % | -42.0 | % | ||||||||
| Amortization of intangibles | 39 | 43 | 51 | -9.3 | % | -23.5 | % | ||||||||
| Merger and acquisition related expenses | - | 2 | - | -100.0 | % | 0.0 | % | ||||||||
| Other | 566 | 540 | 513 | 4.8 | % | 10.3 | % | ||||||||
| Total noninterest expense | $ | 7,481 | $ | 7,681 | $ | 7,158 | -2.6 | % | 4.5 | % | |||||
| BANKWELL FINANCIAL GROUP, INC. | |||||||||
| NONINTEREST INCOME & EXPENSE - YTD (unaudited) | |||||||||
| (Dollars in thousands) | |||||||||
| For the Nine Months Ended | |||||||||
| Noninterest income | September 30, | September 30, | Sep 16 vs. Sep 15 | ||||||
| 2016 | 2015 | % Change | |||||||
| Service charges and fees | $ | 721 | $ | 675 | 6.8 | % | |||
| Bank owned life insurance | 522 | 549 | -4.9 | % | |||||
| Gains and fees from sales of loans | 387 | 885 | -56.3 | % | |||||
| Gain on sale of foreclosed real estate, net | 128 | - | 100.0 | % | |||||
| Net gain on sale of available for sale securities | 92 | - | 100.0 | % | |||||
| Other | 425 | 535 | -20.6 | % | |||||
| Total noninterest income | $ | 2,275 | $ | 2,644 | -14.0 | % | |||
| For the Nine Months Ended | |||||||||
| Noninterest expense | September 30, | September 30, | Sep 16 vs. Sep 15 | ||||||
| 2016 | 2015 | % Change | |||||||
| Salaries and employee benefits | $ | 11,537 | $ | 11,817 | -2.4 | % | |||
| Occupancy and equipment | 4,235 | 4,029 | 5.1 | % | |||||
| Professional services | 1,257 | 1,033 | 21.7 | % | |||||
| Data processing | 1,201 | 1,157 | 3.8 | % | |||||
| Marketing | 644 | 707 | -8.9 | % | |||||
| FDIC insurance | 514 | 487 | 5.5 | % | |||||
| Director fees | 423 | 424 | -0.2 | % | |||||
| Foreclosed real estate | 149 | 73 | 104.1 | % | |||||
| Amortization of intangibles | 119 | 153 | -22.2 | % | |||||
| Other | 1,697 | 1,610 | 5.4 | % | |||||
| Total noninterest expense | $ | 21,776 | $ | 21,490 | 1.3 | % | |||
| 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 | 9/30/2016 | 06/30/2016 | 03/31/2016 | 12/31/2015 | 9/30/2015 | |||||||||||||||
| Total Equity | $ | 140,572 | $ | 137,122 | $ | 134,608 | $ | 131,769 | $ | 135,788 | ||||||||||
| Less: | ||||||||||||||||||||
| Preferred stock | - | - | - | - | 10,980 | |||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | |||||||||||||||
| Other intangibles | 532 | 572 | 612 | 652 | 694 | |||||||||||||||
| Tangible Common Equity | $ | 137,451 | $ | 133,961 | $ | 131,407 | $ | 128,528 | $ | 121,525 | ||||||||||
| Total Assets | $ | 1,565,586 | $ | 1,516,120 | $ | 1,420,210 | $ | 1,330,372 | $ | 1,313,345 | ||||||||||
| Less: | ||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | |||||||||||||||
| Other intangibles | 532 | 572 | 612 | 652 | 694 | |||||||||||||||
| Tangible Assets | $ | 1,562,465 | $ | 1,512,959 | $ | 1,417,009 | $ | 1,327,131 | $ | 1,310,062 | ||||||||||
| Tangible Common Equity to Tangible Assets | 8.80 | % | 8.85 | % | 9.27 | % | 9.68 | % | 9.28 | % | ||||||||||
| As of | ||||||||||||||||||||
| Computation of Tangible Book Value per Common Share | 9/30/2016 | 06/30/2016 | 03/31/2016 | 12/31/2015 | 09/30/2015 | |||||||||||||||
| Total shareholders' equity | $ | 140,572 | $ | 137,122 | $ | 134,608 | $ | 131,769 | $ | 135,788 | ||||||||||
| Less: | ||||||||||||||||||||
| Preferred stock | - | - | - | - | 10,980 | |||||||||||||||
| Common shareholders' equity | 140,572 | 137,122 | 134,608 | 131,769 | 124,808 | |||||||||||||||
| Less: | ||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | |||||||||||||||
| Other intangibles | 532 | 572 | 612 | 652 | 694 | |||||||||||||||
| Tangible common shareholders' equity | 137,451 | 133,961 | 131,407 | 128,528 | 121,525 | |||||||||||||||
| Common shares issued | 7,562,508 | 7,544,458 | 7,530,791 | 7,516,291 | 7,252,429 | |||||||||||||||
| Less: | ||||||||||||||||||||
| Shares of unvested restricted stock | 160,708 | 152,090 | 138,423 | 143,323 | 206,732 | |||||||||||||||
| Common shares outstanding | 7,401,800 | 7,392,368 | 7,392,368 | 7,372,968 | 7,045,697 | |||||||||||||||
| Book value per share | $ | 18.99 | $ | 18.55 | $ | 18.21 | $ | 17.87 | $ | 17.71 | ||||||||||
| Less: | ||||||||||||||||||||
| Effects of intangible assets | $ | 0.42 | $ | 0.43 | $ | 0.43 | $ | 0.44 | $ | 0.47 | ||||||||||
| Tangible Book Value per Common Share | $ | 18.57 | $ | 18.12 | $ | 17.78 | $ | 17.43 | $ | 17.25 | ||||||||||
| BANKWELL FINANCIAL GROUP, INC. | ||||||||||||||||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited) - Continued | ||||||||||||||||||||||||||||
| (Dollars in thousands, except share data) | ||||||||||||||||||||||||||||
| For the Quarter Ended | For the Nine Months Ended | |||||||||||||||||||||||||||
| Computation of Efficiency Ratio | 09/30/2016 | 06/30/2016 | 03/31/2016 | 12/31/2015 | 09/30/2015 | 09/30/2016 | 09/30/2015 | |||||||||||||||||||||
| Noninterest expense | $ | 7,481 | $ | 7,215 | $ | 7,080 | $ | 7,681 | $ | 7,158 | $ | 21,776 | $ | 21,490 | ||||||||||||||
| Less: | ||||||||||||||||||||||||||||
| Amortization of intangible assets | 39 | 40 | 40 | 43 | 51 | 119 | 153 | |||||||||||||||||||||
| Foreclosed real estate expenses | 47 | 30 | 72 | 95 | 81 | 149 | 73 | |||||||||||||||||||||
| Merger and acquisition expense | - | - | - | 2 | - | - | - | |||||||||||||||||||||
| Adjusted noninterest expense | $ | 7,395 | $ | 7,145 | $ | 6,968 | $ | 7,541 | $ | 7,026 | $ | 21,508 | $ | 21,264 | ||||||||||||||
| Net interest income | $ | 12,527 | $ | 11,879 | $ | 11,398 | $ | 11,236 | $ | 10,917 | $ | 35,804 | $ | 31,552 | ||||||||||||||
| Noninterest income | 750 | 853 | 672 | 840 | 1,211 | 2,275 | 2,644 | |||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||
| Gains (losses) on sales of securities | - | 92 | - | - | - | 92 | - | |||||||||||||||||||||
| Gains on sale of foreclosed real estate | - | 128 | - | - | - | 128 | - | |||||||||||||||||||||
| Adjusted operating revenue | $ | 13,277 | $ | 12,512 | $ | 12,070 | $ | 12,076 | $ | 12,128 | $ | 37,859 | $ | 34,196 | ||||||||||||||
| Efficiency ratio | 55.7 | % | 57.1 | % | 57.7 | % | 62.4 | % | 57.9 | % | 56.8 | % | 62.2 | % | ||||||||||||||
| For the Quarter Ended | For the Nine Months Ended | |||||||||||||||||||||||||||
| Computation of Return on Average Tangible Common Equity | 09/30/2016 | 06/30/2016 | 03/31/2016 | 12/31/2015 | 09/30/2015 | 09/30/2016 | 09/30/2015 | |||||||||||||||||||||
| Net Income Attributable to Common Shareholders | $ | 3,140 | $ | 2,896 | $ | 2,991 | $ | 2,575 | $ | 2,226 | $ | 9,027 | $ | 6,330 | ||||||||||||||
| Total average shareholders' equity | 139,449 | 136,389 | 133,474 | 135,311 | 129,097 | 136,445 | 132,974 | |||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||
| Preferred stock | - | - | - | - | 10,980 | - | 10,980 | |||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | |||||||||||||||||||||
| Other intangibles | 532 | 572 | 612 | 652 | 694 | 532 | 694 | |||||||||||||||||||||
| Average tangible common equity | 136,328 | 133,228 | 130,273 | 132,070 | 114,834 | 133,324 | 118,711 | |||||||||||||||||||||
| Annualized Return on Average Tangible Common Equity | 9.16 | % | 8.74 | % | 9.23 | % | 7.74 | % | 7.69 | % | 9.04 | % | 7.13 | % | ||||||||||||||
| BANKWELL FINANCIAL GROUP, INC. | ||||||||||||||||||
| NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS | ||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||
| September 30, 2016 | September 30, 2015 | |||||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||
| Assets: | ||||||||||||||||||
| Cash and Fed funds sold | $ | 28,305 | $ | 29 | 0.41 | % | $ | 62,597 | $ | 33 | 0.21 | % | ||||||
| Securities (1) | 98,480 | 762 | 3.09 | % | 57,234 | 549 | 3.84 | % | ||||||||||
| Loans: | ||||||||||||||||||
| Commercial real estate | 788,429 | 9,305 | 4.62 | % | 645,488 | 7,873 | 4.77 | % | ||||||||||
| Residential real estate | 178,106 | 1,600 | 3.59 | % | 175,908 | 1,569 | 3.57 | % | ||||||||||
| Construction (2) | 107,197 | 1,230 | 4.49 | % | 79,722 | 912 | 4.48 | % | ||||||||||
| Commercial business | 195,881 | 2,584 | 5.16 | % | 157,867 | 2,075 | 5.14 | % | ||||||||||
| Home equity | 14,706 | 156 | 4.23 | % | 16,422 | 155 | 3.75 | % | ||||||||||
| Consumer | 1,467 | 20 | 5.51 | % | 2,184 | 27 | 4.87 | % | ||||||||||
| Acquired loans (net of mark) | 482 | 19 | 15.60 | % | 2,558 | 51 | 7.91 | % | ||||||||||
| Total loans | 1,286,268 | 14,914 | 4.54 | % | 1,080,149 | 12,662 | 4.59 | % | ||||||||||
| Federal Home Loan Bank stock | 7,400 | 65 | 3.51 | % | 6,918 | 47 | 2.71 | % | ||||||||||
| Total earning assets | 1,420,453 | $ | 15,770 | 4.34 | % | 1,206,898 | $ | 13,291 | 4.31 | % | ||||||||
| Other assets | 56,762 | 89,978 | ||||||||||||||||
| Total assets | $ | 1,477,215 | $ | 1,296,876 | ||||||||||||||
| Liabilities and shareholders' equity: | ||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| NOW | $ | 53,515 | 16 | 0.12 | % | $ | 56,104 | 15 | 0.11 | % | ||||||||
| Money market | 330,263 | 484 | 0.58 | % | 293,150 | 408 | 0.55 | % | ||||||||||
| Savings | 62,689 | 64 | 0.40 | % | 103,555 | 214 | 0.82 | % | ||||||||||
| Time | 540,823 | 1,597 | 1.17 | % | 401,968 | 1,005 | 0.99 | % | ||||||||||
| Total interest-bearing deposits | 987,290 | 2,161 | 0.87 | % | 854,777 | 1,642 | 0.76 | % | ||||||||||
| Borrowed Money | 171,385 | 946 | 2.20 | % | 118,391 | 583 | 1.95 | % | ||||||||||
| Total interest-bearing liabilities | 1,158,675 | $ | 3,107 | 1.07 | % | 973,168 | $ | 2,225 | 0.91 | % | ||||||||
| Noninterest-bearing deposits | 170,500 | 161,354 | ||||||||||||||||
| Other liabilities | 8,591 | 33,257 | ||||||||||||||||
| Total liabilities | 1,337,766 | 1,167,779 | ||||||||||||||||
| Shareholders' equity | 139,449 | 129,097 | ||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,477,215 | $ | 1,296,876 | ||||||||||||||
| Net interest income (3) | $ | 12,663 | $ | 11,066 | ||||||||||||||
| Interest rate spread | 3.27 | % | 3.40 | % | ||||||||||||||
| Net interest margin (4) | 3.57 | % | 3.67 | % | ||||||||||||||
| (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 $136 thousand and $149 thousand, respectively for the three months ended September 30, 2016, and 2015. |
| (4) Net interest income as a percentage of earning assets. |
| BANKWELL FINANCIAL GROUP, INC. | ||||||||||||||||||
| NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS | ||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| For the Nine Months Ended | ||||||||||||||||||
| September 30, 2016 | September 30, 2015 | |||||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||
| Assets: | ||||||||||||||||||
| Cash and Fed funds sold | $ | 30,559 | $ | 94 | 0.41 | % | $ | 37,037 | $ | 61 | 0.22 | % | ||||||
| Securities (1) | 102,107 | 2,321 | 3.03 | % | 61,233 | 1,699 | 3.70 | % | ||||||||||
| Loans: | ||||||||||||||||||
| Commercial real estate | 754,163 | 26,385 | 4.60 | % | 583,024 | 21,476 | 4.86 | % | ||||||||||
| Residential real estate | 178,699 | 4,807 | 3.59 | % | 174,389 | 4,727 | 3.61 | % | ||||||||||
| Construction (2) | 96,635 | 3,298 | 4.48 | % | 71,900 | 2,509 | 4.60 | % | ||||||||||
| Commercial business | 178,453 | 7,082 | 5.21 | % | 151,017 | 5,866 | 5.12 | % | ||||||||||
| Home equity | 15,206 | 468 | 4.11 | % | 17,551 | 494 | 3.77 | % | ||||||||||
| Consumer | 1,707 | 66 | 5.14 | % | 2,487 | 90 | 4.85 | % | ||||||||||
| Acquired loans (net of mark) | 863 | 61 | 9.46 | % | 2,877 | 155 | 7.22 | % | ||||||||||
| Total loans | 1,225,726 | 42,167 | 4.52 | % | 1,003,245 | 35,317 | 4.64 | % | ||||||||||
| Federal Home Loan Bank stock | 7,173 | 184 | 3.43 | % | 6,741 | 110 | 2.17 | % | ||||||||||
| Total earning assets | 1,365,565 | $ | 44,766 | 4.31 | % | 1,108,256 | $ | 37,187 | 4.42 | % | ||||||||
| Other assets | 55,145 | 57,388 | ||||||||||||||||
| Total assets | $ | 1,420,710 | $ | 1,165,644 | ||||||||||||||
| Liabilities and shareholders' equity: | ||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| NOW | $ | 55,742 | 87 | 0.21 | % | $ | 57,017 | 48 | 0.11 | % | ||||||||
| Money market | 319,289 | 1,331 | 0.56 | % | 253,662 | 1,007 | 0.53 | % | ||||||||||
| Savings | 71,243 | 215 | 0.40 | % | 95,242 | 492 | 0.69 | % | ||||||||||
| Time | 502,177 | 4,230 | 1.13 | % | 341,658 | 2,358 | 0.92 | % | ||||||||||
| Total interest-bearing deposits | 948,451 | 5,863 | 0.83 | % | 747,579 | 3,905 | 0.70 | % | ||||||||||
| Borrowed Money | 158,247 | 2,682 | 2.26 | % | 124,129 | 1,389 | 1.50 | % | ||||||||||
| Total interest-bearing liabilities | 1,106,698 | $ | 8,545 | 1.03 | % | 871,708 | $ | 5,294 | 0.81 | % | ||||||||
| Noninterest-bearing deposits | 170,088 | 154,825 | ||||||||||||||||
| Other liabilities | 7,479 | 6,137 | ||||||||||||||||
| Total liabilities | 1,284,265 | 1,032,670 | ||||||||||||||||
| Shareholders' equity | 136,445 | 132,974 | ||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,420,710 | $ | 1,165,644 | ||||||||||||||
| Net interest income (3) | $ | 36,221 | $ | 31,893 | ||||||||||||||
| Interest rate spread | 3.28 | % | 3.61 | % | ||||||||||||||
| Net interest margin (4) | 3.54 | % | 3.83 | % | ||||||||||||||
| (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 $417 thousand and $341 thousand, respectively for the nine months ended September 30, 2016, and 2015. |
| (4) Net interest income as a percentage of earning assets. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20161026006899/en/
Contacts:
Christopher R. Gruseke, 203-652-0166
President
and Chief Executive Officer
Ernest J. Verrico Sr., 203-652-0166
Executive
Vice President and Chief Financial Officer
