Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported net income of $4.3 million or $0.55 per share for the third quarter of 2017, versus $3.1 million or $0.41 per share for the same period in 2016.
The Company's Board of Directors declared a $0.07 per share cash dividend, payable November 27, 2017 to shareholders of record on November 17, 2017.
Notes Bankwell Financial Group President and CEO, Christopher R. Gruseke:
“I am pleased to announce that Bankwell has reached many milestones this quarter. Bankwell has realized record earnings of $4.3 million, making it the first time we have exceeded $4.0 million of net income in a single quarter. Total assets and loans also reached new highs, surpassing $1.8 billion and $1.5 billion, respectively. Our performance driven culture has resulted in a year to date annualized ROAA of 0.92% and a year to date annualized ROAE of 10.27%. In addition, our tangible book value per common share stood at $20.41 as of quarter-end.”
“I’m also happy to announce that as Bankwell continues to execute on our strategic growth plan, we have received regulatory approval for two new branch locations with an additional branch application underway.”
“We anticipate another increase to our quarterly dividend in the first quarter of 2018 as we seek to align dividend increases with the calendar year.”
“Finally, I am proud to note that our exceptional performance has been recognized by Sandler O’ Neill + Partners, L.P. as a 2017 ‘Sm-All Star’, naming Bankwell as one of the top performing community banks in the country.”
Third Quarter 2017 Highlights:
- Third quarter diluted earnings per share were $0.55, an increase of 34% compared to the third quarter of 2016.
- Third quarter total revenue (net interest income plus non-interest income) reached $14.7 million versus $13.3 million in the same period last year, an 11% increase.
- Return on average assets reached 0.96% for the quarter ended September 30, 2017 compared to 0.85% for the quarter ended September 30, 2016.
- Return on average tangible common equity reached 10.99% in the third quarter of 2017 compared to 9.16% for the quarter ended September 30, 2016.
- The tangible book value per common share at September 30, 2017 was $20.41, a 10% increase over September 30, 2016.
- Tax equivalent net interest margin was 3.30% for the third quarter of 2017.
- The efficiency ratio was 55.1% and 55.7% for the third quarter of 2017 and 2016, respectively and 54.8% and 56.8% for the nine months ended September 30, 2017 and 2016, respectively.
- Total gross loans exceeded $1.5 billion and grew at an annualized rate of 10% during the third quarter of 2017 and 15% for the nine months ended September 30, 2017.
- Total assets exceeded $1.8 billion and grew at an annualized rate of 11% during the third quarter of 2017 and 14% for the nine months ended September 30, 2017.
- Deposits totaled $1.4 billion and grew at an annualized rate of 12% for the nine months ended September 30, 2017.
- The allowance for loan losses was $19.6 million and represents 1.28% of total loans.
- Nonperforming assets represented 0.25% of total assets as of September 30, 2017.
- Investment securities totaled $109.8 million and represent 6% of total assets.
Earnings
Net income for the quarter ended September 30, 2017 was $4.3 million, an increase of 36% compared to the quarter ended September 30, 2016. Net income for the nine months ended September 30, 2017 was $11.7 million, an increase of 30% compared to the nine months ended September 30, 2016. Revenues (net interest income plus non-interest income) for the quarter ended September 30, 2017 were $14.7 million, an increase of 11% compared to the quarter ended September 30, 2016. Revenues for the nine months ended September 30, 2017 were $43.5 million, an increase of 14% compared to the nine months ended September 30, 2016. Net interest income for the quarter ended September 30, 2017 was $13.9 million, an increase of 11% compared to the quarter ended September 30, 2016. Net interest income for the nine months ended September 30, 2017 was $40.5 million, an increase of 13% compared to the nine months ended September 30, 2016. 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, 2017 were $0.55 compared to $0.42 and $0.41 basic and diluted for the quarter ended September 30, 2016.
The Company’s efficiency ratios for the quarters ended September 30, 2017 and September 30, 2016 were 55.1% and 55.7%, respectively. The Company’s efficiency ratio for the nine months ended September 30, 2017 and September 30, 2016 were 54.8% and 56.8%, respectively.
Noninterest Income and Expense
Noninterest income increased $74 thousand or 10% to $824 thousand for the three months ended September 30, 2017 compared to the three months ended September 30, 2016. Noninterest income increased $813 thousand or 36% to $3.1 million for the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016. The increase in noninterest income was primarily driven by income earned from our additional purchases of Bank Owned Life Insurance and rental income earned from the headquarters building acquired in the fourth quarter of 2016.
Noninterest expense increased $648 thousand or 9% for the three months ended September 30, 2017 compared to the three months ended September 30, 2016. The increase was primarily driven by an increase in professional services due to increased fees paid for internal and external audit, and consulting services and increases in data processing to support the overall growth of the business.
Noninterest expense increased $2.2 million or 10% for the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016. The increase was primarily driven by an increase in salaries and employee benefits, occupancy and equipment expenses and professional services. The increase in salaries and employee benefits was driven by an increase in full time equivalent employees. Average full time equivalent employees totaled 132 at September 30, 2017 compared to 124 at September 30, 2016. The increase in occupancy and equipment expenses was driven by increases in IT related expenses, one time charges relating to back office consolidation activity and maintenance costs for our headquarters building acquired in the fourth quarter of 2016. The increase in professional services was driven by increased fees paid for internal and external audit, and consulting services to support the overall growth of the business.
Financial Condition
Assets exceeded $1.8 billion at September 30, 2017, an annualized increase of 14% compared to assets of $1.6 billion at December 31, 2016. This increase reflects strong organic loan growth. Total gross loans exceeded $1.5 billion at September 30, 2017, an annualized increase of 15% compared to December 31, 2016, driven by growth in commercial real estate loans of $97.6 million and commercial business loans of $56.6 million. Deposits increased to $1.4 billion compared to $1.3 billion at December 31, 2016, an annualized increase of 12% over December 31, 2016.
Asset Quality
Asset quality remained exceptionally strong at September 30, 2017. Non-performing assets as a percentage of total assets was 0.25% at September 30, 2017, up slightly from 0.20% at December 31, 2016. The allowance for loan losses at September 30, 2017 was $19.6 million, representing 1.28% of total loans.
Capital
Shareholders’ equity totaled $158.3 million as of September 30, 2017, an increase of $12.4 million compared to December 31, 2016, primarily a result of net income for the nine months ended September 30, 2017 of $11.7 million. As of September 30, 2017, the tangible common equity ratio and tangible book value per share were 8.62% and $20.41, 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 Penko Ivanov, 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.
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 table. 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 non-interest expense control. The Company believes that tangible common equity and tangible book value per share is 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.
| BANKWELL FINANCIAL GROUP, INC. | |||||||||||||||
| CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||||||||||
| (Dollars in thousands, except share data) | |||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
| 2017 | 2017 | 2017 | 2016 | 2016 | |||||||||||
| Assets | |||||||||||||||
| Cash and due from banks | $ | 85,329 | $ | 84,802 | $ | 63,675 | $ | 96,026 | $ | 94,731 | |||||
| Federal funds sold | 11,117 | 1,185 | 10,280 | 329 | 1,357 | ||||||||||
| Cash and cash equivalents | 96,446 | 85,987 | 73,955 | 96,355 | 96,088 | ||||||||||
| Available for sale investment securities, at fair value | 86,272 | 90,951 | 87,434 | 87,751 | 82,752 | ||||||||||
| Held to maturity investment securities, at amortized cost | 23,573 | 23,615 | 16,808 | 16,859 | 16,909 | ||||||||||
| Loans held for sale | 785 | - | - | 254 | 400 | ||||||||||
| Loans receivable (net of allowance for loan losses of $19,564, $19,536, $18,511, | |||||||||||||||
| $17,982 and $17,250 at September 30, 2017, June 30, 2017, March 31, 2017, | |||||||||||||||
| December 31, 2016 and September 30, 2016, respectively) | 1,500,574 | 1,463,240 | 1,406,407 | 1,343,895 | 1,305,065 | ||||||||||
| Foreclosed real estate | 222 | 222 | 272 | 272 | 272 | ||||||||||
| Accrued interest receivable | 5,344 | 5,239 | 5,180 | 4,958 | 4,499 | ||||||||||
| Federal Home Loan Bank stock, at cost | 9,351 | 8,033 | 8,033 | 7,943 | 7,943 | ||||||||||
| Premises and equipment, net | 17,509 | 17,366 | 17,618 | 17,835 | 10,314 | ||||||||||
| Bank-owned life insurance | 39,329 | 39,034 | 38,740 | 33,448 | 24,277 | ||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||
| Other intangible assets | 407 | 438 | 469 | 501 | 532 | ||||||||||
| Deferred income taxes, net | 8,834 | 8,957 | 8,954 | 9,085 | 9,874 | ||||||||||
| Other assets | 13,703 | 10,133 | 5,783 | 7,174 | 4,072 | ||||||||||
| Total assets | $ | 1,804,938 | $ | 1,755,804 | $ | 1,672,242 | $ | 1,628,919 | $ | 1,565,586 | |||||
| Liabilities & Shareholders' Equity | |||||||||||||||
| Liabilities | |||||||||||||||
| Deposits | |||||||||||||||
| Noninterest-bearing | $ | 162,790 | $ | 176,495 | $ | 170,572 | $ | 187,593 | $ | 176,405 | |||||
| Interest-bearing | 1,247,001 | 1,237,790 | 1,156,888 | 1,101,444 | 1,040,537 | ||||||||||
| Total deposits | 1,409,791 | 1,414,285 | 1,327,460 | 1,289,037 | 1,216,942 | ||||||||||
| Advances from the Federal Home Loan Bank | 195,000 | 150,000 | 160,000 | 160,000 | 175,000 | ||||||||||
| Subordinated debentures | 25,090 | 25,077 | 25,064 | 25,051 | 25,038 | ||||||||||
| Accrued expenses and other liabilities | 16,740 | 12,865 | 10,046 | 8,936 | 8,034 | ||||||||||
| Total liabilities | 1,646,621 | 1,602,227 | 1,522,570 | 1,483,024 | 1,425,014 | ||||||||||
| Shareholders' equity | |||||||||||||||
| Common stock, no par value; 10,000,000 shares authorized, | |||||||||||||||
| 7,705,975, 7,673,850, 7,638,706, 7,620,663 and 7,562,508 shares issued | |||||||||||||||
| and outstanding at September 30, 2017, June 30, 2017, March 31, 2017, | |||||||||||||||
| December 31, 2016 and September 30, 2016, respectively | 117,289 | 116,502 | 115,823 | 115,353 | 113,650 | ||||||||||
| Retained earnings | 39,777 | 36,053 | 32,820 | 29,652 | 26,859 | ||||||||||
| Accumulated other comprehensive income | 1,251 | 1,022 | 1,029 | 890 | 63 | ||||||||||
| Total shareholders' equity | 158,317 | 153,577 | 149,672 | 145,895 | 140,572 | ||||||||||
| Total liabilities and shareholders' equity | $ | 1,804,938 | $ | 1,755,804 | $ | 1,672,242 | $ | 1,628,919 | $ | 1,565,586 | |||||
| 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, | ||||||||||||||||
| 2017 | 2017 | 2017 | 2016 | 2016 | 2017 | 2016 | ||||||||||||||||
| Interest and dividend income | ||||||||||||||||||||||
| Interest and fees on loans | $ | 17,175 | $ | 16,660 | $ | 15,513 | $ | 15,910 | $ | 14,914 | $ | 49,348 | $ | 42,167 | ||||||||
| Interest and dividends on securities | 934 | 880 | 809 | 657 | 688 | 2,623 | 2,083 | |||||||||||||||
| Interest on cash and cash equivalents | 239 | 148 | 114 | 75 | 31 | 501 | 98 | |||||||||||||||
| Total interest income | 18,348 | 17,688 | 16,436 | 16,642 | 15,633 | 52,472 | 44,348 | |||||||||||||||
| Interest expense | ||||||||||||||||||||||
| Interest expense on deposits | 3,416 | 3,095 | 2,581 | 2,438 | 2,160 | 9,092 | 5,862 | |||||||||||||||
| Interest on borrowings | 1,071 | 952 | 907 | 916 | 946 | 2,930 | 2,682 | |||||||||||||||
| Total interest expense | 4,487 | 4,047 | 3,488 | 3,354 | 3,106 | 12,022 | 8,544 | |||||||||||||||
| Net interest income | 13,861 | 13,641 | 12,948 | 13,288 | 12,527 | 40,450 | 35,804 | |||||||||||||||
| Provision for loan losses | 398 | 895 | 543 | 748 | 1,219 | 1,836 | 3,166 | |||||||||||||||
| Net interest income after provision for loan losses | 13,463 | 12,746 | 12,405 | 12,540 | 11,308 | 38,614 | 32,638 | |||||||||||||||
| Noninterest income | ||||||||||||||||||||||
| Bank owned life insurance | 295 | 295 | 291 | 171 | 174 | 881 | 522 | |||||||||||||||
| Service charges and fees | 254 | 261 | 240 | 242 | 241 | 755 | 721 | |||||||||||||||
| Gains and fees from sales of loans | 36 | 199 | 324 | 79 | 163 | 559 | 387 | |||||||||||||||
| Gain on sale of foreclosed real estate, net | - | - | - | - | - | - | 128 | |||||||||||||||
| Net gain (loss) on sale of available for sale securities | - | - | 165 | (207 | ) | - | 165 | 92 | ||||||||||||||
| Other | 239 | 243 | 246 | 116 | 172 | 728 | 425 | |||||||||||||||
| Total noninterest income | 824 | 998 | 1,266 | 401 | 750 | 3,088 | 2,275 | |||||||||||||||
| Noninterest expense | ||||||||||||||||||||||
| Salaries and employee benefits | 3,952 | 3,800 | 3,929 | 4,331 | 3,839 | 11,681 | 11,324 | |||||||||||||||
| Occupancy and equipment | 1,449 | 1,439 | 1,692 | 1,576 | 1,435 | 4,580 | 4,235 | |||||||||||||||
| Professional services | 680 | 523 | 412 | 397 | 521 | 1,615 | 1,257 | |||||||||||||||
| Data processing | 621 | 401 | 445 | 402 | 417 | 1,467 | 1,201 | |||||||||||||||
| Marketing | 295 | 311 | 266 | 304 | 242 | 872 | 644 | |||||||||||||||
| FDIC insurance | 265 | 243 | 383 | 146 | 177 | 891 | 514 | |||||||||||||||
| Director fees | 207 | 243 | 233 | 223 | 198 | 683 | 636 | |||||||||||||||
| Amortization of intangibles | 31 | 31 | 31 | 32 | 39 | 93 | 119 | |||||||||||||||
| Foreclosed real estate | 3 | 60 | 7 | 8 | 47 | 70 | 149 | |||||||||||||||
| Other | 626 | 530 | 836 | 349 | 566 | 1,992 | 1,697 | |||||||||||||||
| Total noninterest expense | 8,129 | 7,581 | 8,234 | 7,768 | 7,481 | 23,944 | 21,776 | |||||||||||||||
| Income before income tax expense | 6,158 | 6,163 | 5,437 | 5,173 | 4,577 | 17,758 | 13,137 | |||||||||||||||
| Income tax expense | 1,895 | 2,394 | 1,735 | 1,850 | 1,437 | 6,024 | 4,110 | |||||||||||||||
| Net income | $ | 4,263 | $ | 3,769 | $ | 3,702 | $ | 3,323 | $ | 3,140 | $ | 11,734 | $ | 9,027 | ||||||||
| Earnings Per Common Share: | ||||||||||||||||||||||
| Basic | $ | 0.55 | $ | 0.49 | $ | 0.49 | $ | 0.44 | $ | 0.42 | $ | 1.53 | $ | 1.20 | ||||||||
| Diluted | 0.55 | 0.49 | 0.48 | 0.43 | 0.41 | 1.51 | 1.19 | |||||||||||||||
| Weighted Average Common Shares Outstanding: | ||||||||||||||||||||||
| Basic | 7,587,471 | 7,550,734 | 7,525,268 | 7,418,820 | 7,397,067 | 7,554,739 | 7,388,364 | |||||||||||||||
| Diluted | 7,670,258 | 7,645,930 | 7,632,123 | 7,560,319 | 7,488,752 | 7,652,355 | 7,459,283 | |||||||||||||||
| Dividends per common share | $ | 0.07 | $ | 0.07 | $ | 0.07 | $ | 0.07 | $ | 0.05 | $ | 0.21 | $ | 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, | |||||||||||||||||||||
| 2017 | 2017 | 2017 | 2016 | 2016 | 2017 | 2016 | |||||||||||||||||||||
| Performance ratios: | |||||||||||||||||||||||||||
| Return on average assets | 0.96 | % | 0.88 | % | 0.93 | % | 0.84 | % | 0.85 | % | 0.92 | % | 0.85 | % | |||||||||||||
| Return on average stockholders' equity | 10.78 | % | 9.89 | % | 10.12 | % | 9.23 | % | 8.96 | % | 10.27 | % | 8.84 | % | |||||||||||||
| Return on average tangible common equity | 10.99 | % | 10.09 | % | 10.33 | % | 9.44 | % | 9.16 | % | 10.48 | % | 9.04 | % | |||||||||||||
| Net interest margin | 3.30 | % | 3.32 | % | 3.35 | % | 3.55 | % | 3.57 | % | 3.32 | % | 3.54 | % | |||||||||||||
| Efficiency ratio (1) | 55.1 | % | 51.2 | % | 58.3 | % | 55.6 | % | 55.7 | % | 54.8 | % | 56.8 | % | |||||||||||||
| Net loan charge-offs (recoveries) as a % of average loans | 0.00 | % | (0.01) | % | 0.00 | % | 0.00 | % | 0.01 | % | 0.00 | % | 0.01 | % | |||||||||||||
| As of | |||||||||||||||||||||||||||
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | |||||||||||||||||||||||
| Capital ratios: | |||||||||||||||||||||||||||
| Total Common Equity Tier 1 Capital to Risk-Weighted Assets (2) | 10.95 | % | 10.91 | % | 11.16 | % | 11.59 | % | 11.64 | % | |||||||||||||||||
| Total Capital to Risk-Weighted Assets (2) | 12.19 | % | 12.16 | % | 12.41 | % | 12.85 | % | 12.89 | % | |||||||||||||||||
| Tier I Capital to Risk-Weighted Assets (2) | 10.95 | % | 10.91 | % | 11.16 | % | 11.59 | % | 11.64 | % | |||||||||||||||||
| Tier I Capital to Average Assets (2) | 9.78 | % | 9.75 | % | 10.06 | % | 10.10 | % | 10.45 | % | |||||||||||||||||
| Tangible common equity to tangible assets | 8.62 | % | 8.59 | % | 8.78 | % | 8.78 | % | 8.80 | % | |||||||||||||||||
| Tangible book value per common share (3) | $ | 20.41 | $ | 19.89 | $ | 19.44 | $ | 18.98 | $ | 18.57 | |||||||||||||||||
| Asset quality: | |||||||||||||||||||||||||||
| Nonaccrual loans | $ | 4,241 | $ | 5,303 | $ | 4,434 | $ | 2,937 | $ | 3,644 | |||||||||||||||||
| Other real estate owned | 222 | 222 | 272 | 272 | 272 | ||||||||||||||||||||||
| Total non-performing assets | $ | 4,463 | $ | 5,525 | $ | 4,706 | $ | 3,209 | $ | 3,916 | |||||||||||||||||
| Nonperforming loans as a % of total loans | 0.28 | % | 0.36 | % | 0.31 | % | 0.22 | % | 0.27 | % | |||||||||||||||||
| Nonperforming assets as a % of total assets | 0.25 | % | 0.31 | % | 0.28 | % | 0.20 | % | 0.25 | % | |||||||||||||||||
| Allowance for loan losses as a % of total loans | 1.28 | % | 1.31 | % | 1.30 | % | 1.32 | % | 1.30 | % | |||||||||||||||||
| Allowance for loan losses as a % of nonperforming loans | 461.31 | % | 368.40 | % | 417.48 | % | 612.26 | % | 473.38 | % | |||||||||||||||||
| (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. Current period capital ratios are preliminary subject to finalization of the FDIC Call Report. | |
| (3) Excludes unvested restricted shares of 96,488, 103,220, 98,176, 96,594 and 160,708 as of September 30, 2017, June 30, 2017, March 31, 2017, December 31, 2016 and September 30, 2016, respectively. | |
| BANKWELL FINANCIAL GROUP, INC. | |||||||||||||||
| LOAN & DEPOSIT PORTFOLIO (unaudited) | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||
| September 30, | June 30, | December 31, | Current QTD | YTD | |||||||||||
| Period End Loan Composition | 2017 | 2017 | 2016 | % Change | % Change | ||||||||||
| Residential Real Estate | $ | 178,948 | $ | 181,005 | $ | 181,310 | (1.1 | %) | (1.3 | %) | |||||
| Commercial Real Estate | 942,898 | 903,080 | 845,322 | 4.4 | % | 11.5 | % | ||||||||
| Construction | 114,571 | 117,348 | 107,441 | (2.4 | %) | 6.6 | % | ||||||||
| Home equity | 13,900 | 14,587 | 14,419 | (4.7 | %) | (3.6 | %) | ||||||||
| Total Real Estate Loans | 1,250,317 | 1,216,020 | 1,148,492 | 2.8 | % | 8.9 | % | ||||||||
| Commercial Business | 272,505 | 269,311 | 215,914 | 1.2 | % | 26.2 | % | ||||||||
| Consumer | 724 | 957 | 1,533 | (24.3 | %) | (52.8 | %) | ||||||||
| Total Loans | $ | 1,523,546 | $ | 1,486,288 | $ | 1,365,939 | 2.5 | % | 11.5 | % | |||||
| September 30, | June 30, | December 31, | Current QTD | YTD | |||||||||||
| Period End Deposit Composition | 2017 | 2017 | 2016 | % Change | % Change | ||||||||||
| Noninterest-bearing demand | $ | 162,790 | $ | 176,495 | $ | 187,593 | (7.8 | %) | (13.2 | %) | |||||
| NOW | 58,894 | 68,049 | 53,950 | (13.5 | %) | 9.2 | % | ||||||||
| Money Market | 453,577 | 401,107 | 349,131 | 13.1 | % | 29.9 | % | ||||||||
| Savings | 87,469 | 113,338 | 96,502 | (22.8 | %) | (9.4 | %) | ||||||||
| Time | 647,061 | 655,296 | 601,861 | (1.3 | %) | 7.5 | % | ||||||||
| Total Deposits | $ | 1,409,791 | $ | 1,414,285 | $ | 1,289,037 | (0.3 | %) | 9.4 | % | |||||
| BANKWELL FINANCIAL GROUP, INC. | ||||||||||
| NONINTEREST INCOME & EXPENSE - QTD (unaudited) | ||||||||||
| (Dollars in thousands) | ||||||||||
| For the Quarter Ended | ||||||||||
| Noninterest income | September 30, | June 30, | September 30, | Sep 17 vs. Jun 17 | Sep 17 vs. Sep 16 | |||||
| 2017 | 2017 | 2016 | % Change | % Change | ||||||
| Bank owned life insurance | $ 295 | $ 295 | $ 174 | 0.0% | 69.5% | |||||
| Service charges and fees | 254 | 261 | 241 | (2.7%) | 5.4% | |||||
| Gains and fees from sales of loans | 36 | 199 | 163 | (81.9%) | (77.9%) | |||||
| Other | 239 | 243 | 172 | (1.6%) | 39.0% | |||||
| Total noninterest income | $ 824 | $ 998 | $ 750 | (17.4%) | 9.9% | |||||
| For the Quarter Ended | ||||||||||
| Noninterest expense | September 30, | June 30, | September 30, | Sep 17 vs. Jun 17 | Sep 17 vs. Sep 16 | |||||
| 2017 | 2017 | 2016 | % Change | % Change | ||||||
| Salaries and employee benefits | $ 3,952 | $ 3,800 | $ 3,839 | 4.0% | 2.9% | |||||
| Occupancy and equipment | 1,449 | 1,439 | 1,435 | 0.7% | 1.0% | |||||
| Professional services | 680 | 523 | 521 | 30.0% | 30.5% | |||||
| Data processing | 621 | 401 | 417 | 54.9% | 48.9% | |||||
| Marketing | 295 | 311 | 242 | (5.1%) | 21.9% | |||||
| FDIC insurance | 265 | 243 | 177 | 9.1% | 49.7% | |||||
| Director fees | 207 | 243 | 198 | (14.8%) | 4.5% | |||||
| Amortization of intangibles | 31 | 31 | 39 | 0.0% | (20.5%) | |||||
| Foreclosed real estate | 3 | 60 | 47 | (95.0%) | (93.6%) | |||||
| Other | 626 | 530 | 566 | 18.1% | 10.6% | |||||
| Total noninterest expense | $ 8,129 | $ 7,581 | $ 7,481 | 7.2% | 8.7% | |||||
| BANKWELL FINANCIAL GROUP, INC. | ||||||||
| NONINTEREST INCOME & EXPENSE - YTD (unaudited) | ||||||||
| (Dollars in thousands) | ||||||||
| For the Nine Months Ended | ||||||||
| Noninterest income | September 30, | September 30, | Sep 17 vs. Sep 16 | |||||
| 2017 | 2016 | % Change | ||||||
| Bank owned life insurance | $ | 881 | $ | 522 | 68.8% | |||
| Service charges and fees | 755 | 721 | 4.7% | |||||
| Gains and fees from sales of loans | 559 | 387 | 44.4% | |||||
| Gain on sale of foreclosed real estate, net | - | 128 | (100.0%) | |||||
| Net gain on sale of available for sale securities | 165 | 92 | 79.3% | |||||
| Other | 728 | 425 | 71.3% | |||||
| Total noninterest income | $ | 3,088 | $ | 2,275 | 35.7% | |||
| For the Nine Months Ended | ||||||||
| Noninterest expense | September 30, | September 30, | Sep 17 vs. Sep 16 | |||||
| 2017 | 2016 | % Change | ||||||
| Salaries and employee benefits | $ | 11,681 | $ | 11,324 | 3.2% | |||
| Occupancy and equipment | 4,580 | 4,235 | 8.1% | |||||
| Professional services | 1,615 | 1,257 | 28.5% | |||||
| Data processing | 1,467 | 1,201 | 22.1% | |||||
| FDIC insurance | 891 | 514 | 73.3% | |||||
| Marketing | 872 | 644 | 35.4% | |||||
| Director fees | 683 | 636 | 7.4% | |||||
| Amortization of intangibles | 93 | 119 | (21.8%) | |||||
| Foreclosed real estate | 70 | 149 | (53.0%) | |||||
| Other | 1,992 | 1,697 | 17.4% | |||||
| Total noninterest expense | $ | 23,944 | $ | 21,776 | 10.0% | |||
| 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 | 9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 09/30/2016 | ||||||||||||||||
| Total Equity | $ | 158,317 | $ | 153,577 | $ | 149,672 | $ | 145,895 | $ | 140,572 | |||||||||||
| Less: | |||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||||
| Other intangibles | 407 | 438 | 469 | 501 | 532 | ||||||||||||||||
| Tangible Common Equity | $ | 155,321 | $ | 150,550 | $ | 146,614 | $ | 142,805 | $ | 137,451 | |||||||||||
| Total Assets | $ | 1,804,938 | $ | 1,755,804 | $ | 1,672,242 | $ | 1,628,919 | $ | 1,565,586 | |||||||||||
| Less: | |||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||||
| Other intangibles | 407 | 438 | 469 | 501 | 532 | ||||||||||||||||
| Tangible Assets | $ | 1,801,942 | $ | 1,752,777 | $ | 1,669,184 | $ | 1,625,829 | $ | 1,562,465 | |||||||||||
| Tangible Common Equity to Tangible Assets | 8.62% | 8.59% | 8.78% | 8.78% | 8.80% | ||||||||||||||||
| As of | |||||||||||||||||||||
| Computation of Tangible Book Value per Common Share | 9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 09/30/2016 | ||||||||||||||||
| Total shareholders' equity | $ | 158,317 | $ | 153,577 | $ | 149,672 | $ | 145,895 | $ | 140,572 | |||||||||||
| Less: | |||||||||||||||||||||
| Preferred stock | - | - | - | - | - | ||||||||||||||||
| Common shareholders' equity | 158,317 | 153,577 | 149,672 | 145,895 | 140,572 | ||||||||||||||||
| Less: | |||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||||
| Other intangibles | 407 | 438 | 469 | 501 | 532 | ||||||||||||||||
| Tangible common shareholders' equity | 155,321 | 150,550 | 146,614 | 142,805 | 137,451 | ||||||||||||||||
| Common shares issued | 7,705,975 | 7,673,850 | 7,638,706 | 7,620,663 | 7,562,508 | ||||||||||||||||
| Less: | |||||||||||||||||||||
| Shares of unvested restricted stock | 96,488 | 103,220 | 98,176 | 96,594 | 160,708 | ||||||||||||||||
| Common shares outstanding | 7,609,487 | 7,570,630 | 7,540,530 | 7,524,069 | 7,401,800 | ||||||||||||||||
| Book value per share | $ | 20.81 | $ | 20.29 | $ | 19.85 | $ | 19.39 | $ | 18.99 | |||||||||||
| Less: | |||||||||||||||||||||
| Effects of intangible assets | $ | 0.39 | $ | 0.40 | $ | 0.41 | $ | 0.41 | $ | 0.42 | |||||||||||
| Tangible Book Value per Common Share | $ | 20.41 | $ | 19.89 | $ | 19.44 | $ | 18.98 | $ | 18.57 | |||||||||||
| 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 | 9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 09/30/2016 | 09/30/2017 | 09/30/2016 | ||||||||||||||
| Noninterest expense | $ | 8,129 | $ | 7,581 | $ | 8,234 | $ | 7,768 | $ | 7,481 | $ | 23,944 | $ | 21,776 | |||||||
| Less: | |||||||||||||||||||||
| Amortization of intangible assets | 31 | 31 | 31 | 32 | 39 | 93 | 119 | ||||||||||||||
| Foreclosed real estate expenses | 3 | 60 | 7 | 8 | 47 | 70 | 149 | ||||||||||||||
| Adjusted noninterest expense | $ | 8,095 | $ | 7,490 | $ | 8,196 | $ | 7,728 | $ | 7,395 | $ | 23,781 | $ | 21,508 | |||||||
| Net interest income | $ | 13,861 | $ | 13,641 | $ | 12,948 | $ | 13,288 | $ | 12,527 | $ | 40,450 | $ | 35,804 | |||||||
| Noninterest income | 824 | 998 | 1,266 | 401 | 750 | 3,088 | 2,275 | ||||||||||||||
| Less: | |||||||||||||||||||||
| Gains (losses) on sales of securities | - | - | 165 | (207) | - | 165 | 92 | ||||||||||||||
| Gains on sale of foreclosed real estate | - | - | - | - | - | - | 128 | ||||||||||||||
| Adjusted operating revenue | $ | 14,685 | $ | 14,639 | $ | 14,049 | $ | 13,896 | $ | 13,277 | $ | 43,373 | $ | 37,859 | |||||||
| Efficiency ratio | 55.1% | 51.2% | 58.3% | 55.6% | 55.7% | 54.8% | 56.8% | ||||||||||||||
| For the Quarter Ended | For the Nine Months Ended | ||||||||||||||||||||
| Computation of Return on Average Tangible Common Equity | 9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 09/30/2016 | 09/30/2017 | 09/30/2016 | ||||||||||||||
| Net Income Attributable to Common Shareholders | $ | 4,263 | $ | 3,769 | $ | 3,702 | $ | 3,323 | $ | 3,140 | $ | 11,734 | $ | 9,027 | |||||||
| Total average shareholders' equity | $ | 156,852 | $ | 152,898 | $ | 148,349 | $ | 143,152 | $ | 139,449 | $ | 152,721 | $ | 136,445 | |||||||
| Less: | |||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||
| Other intangibles | 407 | 438 | 469 | 501 | 532 | 407 | 532 | ||||||||||||||
| Average tangible common equity | $ | 153,856 | $ | 149,871 | $ | 145,291 | $ | 140,062 | $ | 136,328 | $ | 149,725 | $ | 133,324 | |||||||
| Annualized Return on Average Tangible Common Equity | 10.99% | 10.09% | 10.33% | 9.44% | 9.16% | 10.48% | 9.04% | ||||||||||||||
| BANKWELL FINANCIAL GROUP, INC. | ||||||||||||||||||||||
| NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS | ||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||||||
| September 30, 2017 | September 30, 2016 | |||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||||||||||
| Balance | Interest | Rate (5) | Balance | Interest | Rate (5) | |||||||||||||||||
| Assets: | ||||||||||||||||||||||
| Cash and Fed funds sold | $ | 83,086 | $ | 239 | 1.14% | $ | 28,305 | $ | 29 | 0.41% | ||||||||||||
| Securities (1) | 112,066 | 1,014 | 3.62% | 98,480 | 762 | 3.09% | ||||||||||||||||
| Loans: | ||||||||||||||||||||||
| Commercial real estate | 927,114 | 10,613 | 4.48% | 788,911 | 9,324 | 4.62% | ||||||||||||||||
| Residential real estate | 179,428 | 1,597 | 3.56% | 178,106 | 1,600 | 3.59% | ||||||||||||||||
| Construction (2) | 106,373 | 1,305 | 4.80% | 107,197 | 1,230 | 4.49% | ||||||||||||||||
| Commercial business | 268,408 | 3,476 | 5.07% | 195,881 | 2,584 | 5.16% | ||||||||||||||||
| Home equity | 14,150 | 172 | 4.83% | 14,706 | 156 | 4.23% | ||||||||||||||||
| Consumer | 1,149 | 10 | 3.53% | 1,467 | 20 | 5.51% | ||||||||||||||||
| Total loans | 1,496,622 | 17,173 | 4.49% | 1,286,268 | 14,914 | 4.54% | ||||||||||||||||
| Federal Home Loan Bank stock | 8,544 | 85 | 3.96% | 7,400 | 65 | 3.51% | ||||||||||||||||
| Total earning assets | 1,700,318 | 18,511 | 4.26% | 1,420,453 | 15,770 | 4.34% | ||||||||||||||||
| Other assets | 69,253 | 56,762 | ||||||||||||||||||||
| Total assets | $ | 1,769,571 | $ | 1,477,215 | ||||||||||||||||||
| Liabilities and shareholders' equity: | ||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||
| NOW | $ | 58,625 | 19 | 0.13% | $ | 53,515 | 16 | 0.12% | ||||||||||||||
| Money market | 432,753 | 992 | 0.91% | 330,263 | 484 | 0.58% | ||||||||||||||||
| Savings | 100,197 | 189 | 0.75% | 62,689 | 64 | 0.40% | ||||||||||||||||
| Time | 645,317 | 2,215 | 1.36% | 540,823 | 1,597 | 1.17% | ||||||||||||||||
| Total interest-bearing deposits | 1,236,892 | 3,415 | 1.10% | 987,290 | 2,161 | 0.87% | ||||||||||||||||
| Borrowed Money | 193,734 | 1,071 | 2.16% | 171,385 | 946 | 2.16% | ||||||||||||||||
| Total interest-bearing liabilities | 1,430,626 | $ | 4,486 | 1.24% | 1,158,675 | $ | 3,107 | 1.07% | ||||||||||||||
| Noninterest-bearing deposits | 164,565 | 170,500 | ||||||||||||||||||||
| Other liabilities | 17,528 | 8,591 | ||||||||||||||||||||
| Total liabilities | 1,612,719 | 1,337,766 | ||||||||||||||||||||
| Shareholders' equity | 156,852 | 139,449 | ||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,769,571 | $ | 1,477,215 | ||||||||||||||||||
| Net interest income (3) | $ | 14,025 | $ | 12,663 | ||||||||||||||||||
| Interest rate spread | 3.02% | 3.27% | ||||||||||||||||||||
| Net interest margin (4) | 3.30% | 3.57% | ||||||||||||||||||||
| (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 $164 thousand and $136 thousand, respectively for the three months ended September 30, 2017 and 2016. |
| (4) Net interest income as a percentage of earning assets. |
| (5) 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 | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| For the Nine Months Ended | ||||||||||||||||
| September 30, 2017 | September 30, 2016 | |||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||||
| Balance | Interest | Rate (5) | Balance | Interest | Rate (5) | |||||||||||
| Assets: | ||||||||||||||||
| Cash and Fed funds sold | $ | 79,333 | $ | 502 | 0.85% | $ | 30,559 | $ | 94 | 0.41% | ||||||
| Securities (1) | 106,622 | 2,822 | 3.53% | 102,107 | 2,321 | 3.03% | ||||||||||
| Loans: | ||||||||||||||||
| Commercial real estate | 893,962 | 30,527 | 4.50% | 755,026 | 26,446 | 4.60% | ||||||||||
| Residential real estate | 180,347 | 4,835 | 3.57% | 178,699 | 4,807 | 3.59% | ||||||||||
| Construction (2) | 107,136 | 3,853 | 4.74% | 96,635 | 3,298 | 4.48% | ||||||||||
| Commercial business | 249,718 | 9,607 | 5.07% | 178,453 | 7,082 | 5.21% | ||||||||||
| Home equity | 14,156 | 490 | 4.63% | 15,206 | 468 | 4.11% | ||||||||||
| Consumer | 1,387 | 35 | 3.40% | 1,707 | 66 | 5.14% | ||||||||||
| Total loans | 1,446,706 | 49,347 | 4.50% | 1,225,726 | 42,167 | 4.52% | ||||||||||
| Federal Home Loan Bank stock | 8,198 | 244 | 3.97% | 7,173 | 184 | 3.43% | ||||||||||
| Total earning assets | 1,640,859 | 52,915 | 4.25% | 1,365,565 | 44,766 | 4.31% | ||||||||||
| Other assets | 63,527 | 55,145 | ||||||||||||||
| Total assets | $ | 1,704,386 | $ | 1,420,710 | ||||||||||||
| Liabilities and shareholders' equity: | ||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||
| NOW | $ | 58,096 | 65 | 0.15% | $ | 55,742 | 87 | 0.21% | ||||||||
| Money market | 387,162 | 2,329 | 0.80% | 319,289 | 1,331 | 0.56% | ||||||||||
| Savings | 108,304 | 591 | 0.73% | 71,243 | 215 | 0.40% | ||||||||||
| Time | 628,521 | 6,107 | 1.30% | 502,177 | 4,230 | 1.13% | ||||||||||
| Total interest-bearing deposits | 1,182,083 | 9,092 | 1.03% | 948,451 | 5,863 | 0.83% | ||||||||||
| Borrowed Money | 186,844 | 2,930 | 2.07% | 158,247 | 2,682 | 2.23% | ||||||||||
| Total interest-bearing liabilities | 1,368,927 | $ | 12,022 | 1.17% | 1,106,698 | $ | 8,545 | 1.03% | ||||||||
| Noninterest-bearing deposits | 168,778 | 170,088 | ||||||||||||||
| Other liabilities | 13,960 | 7,479 | ||||||||||||||
| Total liabilities | 1,551,665 | 1,284,265 | ||||||||||||||
| Shareholders' equity | 152,721 | 136,445 | ||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,704,386 | $ | 1,420,710 | ||||||||||||
| Net interest income (3) | $ | 40,893 | $ | 36,221 | ||||||||||||
| Interest rate spread | 3.08% | 3.28% | ||||||||||||||
| Net interest margin (4) | 3.32% | 3.54% | ||||||||||||||
| (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 $443 thousand and $417 thousand, respectively for the nine months ended September 30, 2017, and 2016. |
| (4) 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: http://www.businesswire.com/news/home/20171018006560/en/
Contacts:
Christopher R. Gruseke, 203-652-0166
President
and Chief Executive Officer
or
Penko Ivanov, 203-652-0166
Executive
Vice President and Chief Financial Officer
