Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $4.9 million or $0.62 per share for the third quarter of 2018, versus $4.3 million or $0.55 per share for the same period in 2017.
The Company's Board of Directors declared a $0.12 per share cash dividend, payable November 26, 2018 to shareholders of record on November 16, 2018.
Notes Bankwell Financial Group President and CEO, Christopher R. Gruseke:
“Thanks to the Bankwell team for another strong performance. Our third quarter ROAA and ROATCE were 1.04% and 11.32%, respectively. Loan growth for the third quarter was somewhat muted by payoffs and pre-payments, still, loans have grown year-to-date at an annualized rate of approximately 6%. We look forward to a solid finish to the year.”
Third Quarter 2018 Highlights:
- Third quarter diluted earnings per share were $0.62, an increase of 13% compared to the third quarter of 2017.
- Return on average assets reached 1.04% for the quarter ended September 30, 2018 compared to 0.96% for the quarter ended September 30, 2017.
- Return on average tangible common equity reached 11.32% in the third quarter of 2018 compared to 10.99% for the quarter ended September 30, 2017.
- The tangible book value per common share at September 30, 2018 was $22.20, a 9% increase over September 30, 2017.
- Third quarter total revenue (net interest income plus non-interest income) was $15.1 million versus $14.7 million in the same period last year, a 3% increase.
- The third quarter efficiency ratio totaled 58.6%.
- The third quarter noninterest income totaled $0.9 million compared to $0.8 million for the third quarter of 2017.
- Tax equivalent net interest margin was 3.21% for the third quarter of 2018.
- Total gross loans exceeded $1.6 billion for the third quarter of 2018.
- Total assets approached $1.9 billion.
- Total deposits approached $1.5 billion and grew at an annualized rate of 8% during the third quarter of 2018.
- The allowance for loan losses was $19.3 million and represents 1.20% of total loans.
- Investment securities totaled $115.9 million and represent 6% of total assets.
Earnings
Net income for the quarter ended September 30, 2018 was $4.9 million, an increase of 14% compared to the quarter ended September 30, 2017. Net income for the nine months ended September 30, 2018 was $14.2 million, an increase of 21% compared to the nine months ended September 30, 2017. Revenues (net interest income plus non-interest income) for the quarter ended September 30, 2018 were $15.1 million, an increase of 3% compared to the quarter ended September 30, 2017. Revenues for the nine months ended September 30, 2018 were $45.2 million, an increase of 4% compared to the nine months ended September 30, 2017. Net interest income for the quarter ended September 30, 2018 was $14.2 million, an increase of 3% compared to the quarter ended September 30, 2017. Net interest income for the nine months ended September 30, 2018 was $41.9 million, an increase of 3% compared to the nine months ended September 30, 2017. The increase in net income was driven by an increase in interest and fees on loans and from a reduction in the corporate tax rate from 35% to 21% resulting from the 2017 tax reform, offset by increases in interest expense and noninterest expense. The increase in interest and fees on loans was a result of commercial real estate and commercial business loan growth as compared to September 30, 2017.
Basic and diluted earnings per share were each $0.62 for the quarter ended September 30, 2018 compared to $0.55 for the quarter ended September 30, 2017. Basic and diluted earnings per share were $1.81 and $1.80, respectively, for the nine months ended September 30, 2018 compared to $1.53 and $1.51, respectively, for the nine months ended September 30, 2017.
The Company’s efficiency ratio for the quarters ended September 30, 2018 and September 30, 2017 was 58.6% and 55.1%, respectively. The Company’s efficiency ratio for the nine months ended September 30, 2018 and September 30, 2017 was 59.6% and 54.8%, respectively. The increase in the efficiency ratio was driven by an increase in noninterest expense associated with the opening of three new branches during the second quarter of 2018 as well as a number of non-recurring expenses previously disclosed in the first quarter 2018 earnings release.
Noninterest Income and Expense
Noninterest income increased $35 thousand or 4% to $0.9 million for the three months ended September 30, 2018 compared to the three months ended September 30, 2017. Noninterest income increased $211 thousand or 7% to $3.3 million for the nine months ended September 30, 2018 compared to the nine months ended September 30, 2017. The increase in noninterest income was primarily driven by an increase in gains and fees from the sales of loans. Gains and fees from the sales of loans totaled $150 thousand for the quarter ended September 30, 2018 compared to $36 thousand for the same period in 2017, an increase of $114 thousand. Gains and fees from the sales of loans totaled $835 thousand for the nine months ended September 30, 2018 compared to $559 thousand for the same period in 2017, an increase of $276 thousand.
Noninterest expense increased $0.7 million or 9% for the three months ended September 30, 2018 compared to the three months ended September 30, 2017. Noninterest expense increased $2.9 million or 12% for the nine months ended September 30, 2018 compared to the nine months ended September 30, 2017. The increase was primarily driven by an increase in salaries and employee benefits and an increase in occupancy and equipment expense. Salaries and employee benefits totaled $4.9 million for the quarter ended September 30, 2018 compared to $4.0 million for the same period in 2017, an increase of $0.9 million. Salaries and employee benefits totaled $14.5 million for the nine months ended September 30, 2018 compared to $11.7 million for the same period in 2017, an increase of $2.8 million. The increase in salaries and employee benefits was primarily driven by an increase in full time equivalent employees and a reduction in deferred loan origination costs as a result of lower loan volume. The increase in full time equivalent employees is in line with year over year business growth and driven by staffing for the three new branch locations, opened during the second quarter of 2018. Average full time equivalent employees totaled 144 at September 30, 2018 compared to 132 at September 30, 2017. Occupancy and equipment expense totaled $1.8 million for the quarter ended September 30, 2018 compared to $1.4 million for the same period in 2017, an increase of $0.4 million. Occupancy and equipment expense totaled $5.1 million for the nine months ended September 30, 2018 compared to $4.6 million for the same period in 2017, an increase of $0.5 million. The increase in occupancy and equipment expense was primarily driven by expenditures associated with the opening of the new branch locations and improvements of existing infrastructure.
Financial Condition
Assets totaled $1.9 billion at September 30, 2018, an annualized increase of 7% compared to assets of $1.8 billion at December 31, 2017. Total gross loans were $1.6 billion at September 30, 2018, an increase of $64.6 million compared to December 31, 2017, driven by disciplined growth in commercial loans. Deposits increased to $1.5 billion, an annualized increase of 9% over December 31, 2017.
Asset Quality
Non-performing assets as a percentage of total assets was 1.17% at September 30, 2018, up from 0.31% at December 31, 2017. The increase in non-performing assets is primarily driven by one impaired commercial loan relationship, previously discussed in the second quarter 2018 Earnings Release. The allowance for loan losses was $19.3 million, representing 1.20% of total loans and $18.9 million, representing 1.23% of total loans at September 30, 2018 and December 31, 2017, respectively. The Bank’s general allowance for loan losses provides a 288% coverage of non-performing assets for which there is no specific reserve as of September 30, 2018.
Capital
Shareholders’ equity totaled $174.8 million as of September 30, 2018, an increase of $13.7 million compared to December 31, 2017, primarily a result of net income for the nine months ended September 30, 2018 of $14.2 million and equity from stock transactions totaling $1.9 million, offset by dividends paid of $2.8 million. As of September 30, 2018, the tangible common equity ratio and tangible book value per share were 9.13% and $22.20, 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, | ||||||||||||||||||||||
| 2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||
| Cash and due from banks | $ | 84,437 | $ | 89,214 | $ | 81,249 | $ | 70,545 | $ | 85,329 | ||||||||||||||||
| Federal funds sold | 2,664 | 105 | 2,121 | 186 | 11,117 | |||||||||||||||||||||
| Cash and cash equivalents | 87,101 | 89,319 | 83,370 | 70,731 | 96,446 | |||||||||||||||||||||
| Available for sale investment securities, at fair value | 94,438 | 92,608 | 99,050 | 92,188 | 86,272 | |||||||||||||||||||||
| Held to maturity investment securities, at amortized cost | 21,464 | 21,505 | 21,546 | 21,579 | 23,573 | |||||||||||||||||||||
| Loans held for sale | - | - | - | - | 785 | |||||||||||||||||||||
| Loans receivable (net of allowance for loan losses of $19,311, $19,006, | ||||||||||||||||||||||||||
| $18,801, $18,904 and $19,564 at September 30, 2018, June 30, 2018, | ||||||||||||||||||||||||||
| March 31, 2018, December 31, 2017 and September 30, 2017, respectively) | 1,585,465 | 1,572,591 | 1,534,565 | 1,520,879 | 1,500,574 | |||||||||||||||||||||
| Foreclosed real estate | - | - | 487 | - | 222 | |||||||||||||||||||||
| Accrued interest receivable | 6,055 | 5,522 | 5,331 | 5,910 | 5,344 | |||||||||||||||||||||
| Federal Home Loan Bank stock, at cost | 9,210 | 9,333 | 9,310 | 9,183 | 9,351 | |||||||||||||||||||||
| Premises and equipment, net | 20,245 | 20,313 | 19,207 | 18,196 | 17,509 | |||||||||||||||||||||
| Bank-owned life insurance | 40,413 | 40,146 | 39,880 | 39,618 | 39,329 | |||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | |||||||||||||||||||||
| Other intangible assets | 309 | 334 | 358 | 382 | 407 | |||||||||||||||||||||
| Deferred income taxes, net | 4,583 | 4,683 | 4,716 | 4,904 | 8,834 | |||||||||||||||||||||
| Other assets | 13,164 | 11,859 | 10,834 | 10,448 | 13,703 | |||||||||||||||||||||
| Total assets | $ | 1,885,036 | $ | 1,870,802 | $ | 1,831,243 | $ | 1,796,607 | $ | 1,804,938 | ||||||||||||||||
| Liabilities & Shareholders' Equity | ||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||||
| Noninterest-bearing deposits | $ | 162,473 | $ | 168,295 | $ | 161,641 | $ | 172,638 | $ | 162,790 | ||||||||||||||||
| Interest-bearing deposits | 1,330,696 | 1,297,343 | 1,264,886 | 1,225,767 | 1,247,001 | |||||||||||||||||||||
| Total deposits | 1,493,169 | 1,465,638 | 1,426,527 | 1,398,405 | 1,409,791 | |||||||||||||||||||||
| Advances from the Federal Home Loan Bank | 180,000 | 199,000 | 199,000 | 199,000 | 195,000 | |||||||||||||||||||||
| Subordinated debentures | 25,142 | 25,129 | 25,116 | 25,103 | 25,090 | |||||||||||||||||||||
| Accrued expenses and other liabilities | 11,971 | 11,462 | 14,653 | 13,072 | 16,740 | |||||||||||||||||||||
| Total liabilities | 1,710,282 | 1,701,229 | 1,665,296 | 1,635,580 | 1,646,621 | |||||||||||||||||||||
| Shareholders' equity | ||||||||||||||||||||||||||
| Common stock, no par value; 10,000,000 shares authorized, 7,842,996, 7,841,720, | ||||||||||||||||||||||||||
| 7,831,804, 7,751,424 and 7,705,975 shares issued and outstanding at | ||||||||||||||||||||||||||
| September 30, 2018, June 30, 2018, March 31, 2018, | ||||||||||||||||||||||||||
| December 31, 2017 and September 30, 2017, respectively | 120,188 | 119,824 | 119,363 | 118,301 | 117,289 | |||||||||||||||||||||
| Retained earnings | 52,386 | 48,470 | 44,695 | 41,032 | 39,777 | |||||||||||||||||||||
| Accumulated other comprehensive income | 2,180 | 1,279 | 1,889 | 1,694 | 1,251 | |||||||||||||||||||||
| Total shareholders' equity | 174,754 | 169,573 | 165,947 | 161,027 | 158,317 | |||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,885,036 | $ | 1,870,802 | $ | 1,831,243 | $ | 1,796,607 | $ | 1,804,938 | ||||||||||||||||
| 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, | |||||||||||||||||||||||||||
| 2018 | 2018 | 2018 | 2017 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||
| Interest and dividend income | |||||||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 19,153 | $ | 18,114 | $ | 17,418 | $ | 17,493 | $ | 17,175 | $ | 54,685 | $ | 49,348 | |||||||||||||||||||
| Interest and dividends on securities | 1,002 | 975 | 935 | 947 | 934 | 2,912 | 2,623 | ||||||||||||||||||||||||||
| Interest on cash and cash equivalents | 345 | 325 | 254 | 289 | 239 | 924 | 501 | ||||||||||||||||||||||||||
| Total interest income | 20,500 | 19,414 | 18,607 | 18,729 | 18,348 | 58,521 | 52,472 | ||||||||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||||||||||
| Interest expense on deposits | 5,044 | 4,309 | 3,656 | 3,602 | 3,416 | 13,009 | 9,092 | ||||||||||||||||||||||||||
| Interest on borrowings | 1,210 | 1,197 | 1,246 | 1,213 | 1,071 | 3,653 | 2,930 | ||||||||||||||||||||||||||
| Total interest expense | 6,254 | 5,506 | 4,902 | 4,815 | 4,487 | 16,662 | 12,022 | ||||||||||||||||||||||||||
| Net interest income | 14,246 | 13,908 | 13,705 | 13,914 | 13,861 | 41,859 | 40,450 | ||||||||||||||||||||||||||
| Provision (Credit) for loan losses | 322 | 310 | 13 | (495 | ) | 398 | 645 | 1,836 | |||||||||||||||||||||||||
| Net interest income after provision (credit) for loan losses | 13,924 | 13,598 | 13,692 | 14,409 | 13,463 | 41,214 | 38,614 | ||||||||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||||||||
| Service charges and fees | 285 | 265 | 256 | 252 | 254 | 806 | 755 | ||||||||||||||||||||||||||
| Bank owned life insurance | 267 | 265 | 263 | 289 | 295 | 795 | 881 | ||||||||||||||||||||||||||
| Gains and fees from sales of loans | 150 | 315 | 370 | 868 | 36 | 835 | 559 | ||||||||||||||||||||||||||
| Net gain on sale of available for sale securities | - | - | 222 | - | - | 222 | 165 | ||||||||||||||||||||||||||
| Other | 157 | 262 | 222 | 210 | 239 | 641 | 728 | ||||||||||||||||||||||||||
| Total noninterest income | 859 | 1,107 | 1,333 | 1,541 | 824 | 3,299 | 3,088 | ||||||||||||||||||||||||||
| Noninterest expense | |||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 4,903 | 4,539 | 5,028 | 4,603 | 3,952 | 14,470 | 11,681 | ||||||||||||||||||||||||||
| Occupancy and equipment | 1,771 | 1,731 | 1,617 | 1,585 | 1,449 | 5,119 | 4,580 | ||||||||||||||||||||||||||
| Data processing | 512 | 509 | 525 | 399 | 621 | 1,546 | 1,467 | ||||||||||||||||||||||||||
| Marketing | 395 | 479 | 297 | 321 | 295 | 1,171 | 872 | ||||||||||||||||||||||||||
| Professional services | 321 | 424 | 775 | 457 | 680 | 1,520 | 1,615 | ||||||||||||||||||||||||||
| Director fees | 260 | 274 | 215 | 229 | 207 | 749 | 683 | ||||||||||||||||||||||||||
| FDIC insurance | 203 | 203 | 214 | 225 | 265 | 620 | 891 | ||||||||||||||||||||||||||
| Amortization of intangibles | 24 | 24 | 24 | 25 | 31 | 72 | 93 | ||||||||||||||||||||||||||
| Other | 481 | 581 | 508 | 735 | 629 | 1,570 | 2,062 | ||||||||||||||||||||||||||
| Total noninterest expense | 8,870 | 8,764 | 9,203 | 8,579 | 8,129 | 26,837 | 23,944 | ||||||||||||||||||||||||||
| Income before income tax expense | 5,913 | 5,941 | 5,822 | 7,371 | 6,158 | 17,676 | 17,758 | ||||||||||||||||||||||||||
| Income tax expense | 1,056 | 1,226 | 1,222 | 5,275 | 1,895 | 3,504 | 6,024 | ||||||||||||||||||||||||||
| Net income | $ | 4,857 | $ | 4,715 | $ | 4,600 | $ | 2,096 | $ | 4,263 | $ | 14,172 | $ | 11,734 | |||||||||||||||||||
| Earnings Per Common Share: | |||||||||||||||||||||||||||||||||
| Basic | $ | 0.62 | $ | 0.60 | $ | 0.59 | $ | 0.27 | $ | 0.55 | $ | 1.81 | $ | 1.53 | |||||||||||||||||||
| Diluted | 0.62 | 0.60 | 0.59 | 0.27 | 0.55 | 1.80 | 1.51 | ||||||||||||||||||||||||||
| Weighted Average Common Shares Outstanding: | |||||||||||||||||||||||||||||||||
| Basic | 7,738,343 | 7,722,892 | 7,676,813 | 7,624,931 | 7,587,471 | 7,712,924 | 7,554,739 | ||||||||||||||||||||||||||
| Diluted | 7,763,935 | 7,761,560 | 7,722,120 | 7,702,770 | 7,670,258 | 7,758,762 | 7,652,355 | ||||||||||||||||||||||||||
| Dividends per common share | $ | 0.12 | $ | 0.12 | $ | 0.12 | $ | 0.07 | $ | 0.07 | $ | 0.36 | $ | 0.21 | |||||||||||||||||||
| 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, | ||||||||||||||||||||||
| 2018 | 2018 | 2018 | 2017 | 2017 | 2018 | 2017 | ||||||||||||||||||||||
| Performance ratios: | ||||||||||||||||||||||||||||
| Return on average assets* | 1.04 | % | 1.02 | % | 1.03 | % | 0.46 | % | 0.96 | % | 1.03 | % | 0.92 | % | ||||||||||||||
| Return on average stockholders' equity* | 11.13 | % | 11.21 | % | 11.35 | % | 5.15 | % | 10.78 | % | 11.23 | % | 10.27 | % | ||||||||||||||
| Return on average tangible common equity* | 11.32 | % | 11.41 | % | 11.56 | % | 5.25 | % | 10.99 | % | 11.43 | % | 10.48 | % | ||||||||||||||
| Net interest margin | 3.21 | % | 3.14 | % | 3.15 | % | 3.23 | % | 3.30 | % | 3.17 | % | 3.32 | % | ||||||||||||||
| Efficiency ratio (1) | 58.6 | % | 58.2 | % | 62.0 | % | 55.1 | % | 55.1 | % | 59.6 | % | 54.8 | % | ||||||||||||||
| Net loan charge-offs as a % of average loans | 0.00 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.02 | % | 0.02 | % | 0.02 | % | ||||||||||||||
| *All metrics, as of December 31, 2017, measuring return were impacted primarily as a result of the Tax Cut and Jobs Act passed in December 2017 along with several other smaller items. Please refer to the Q4'17 Earnings Release for further detail. |
| As of | ||||||||||||||||||||||||||||||
| September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | ||||||||||||||||||||||||||
| Capital ratios: | ||||||||||||||||||||||||||||||
| Total Common Equity Tier 1 Capital to Risk-Weighted Assets (2) | 11.43 | % | 11.31 | % | 11.18 | % | 10.99 | % | 10.95 | % | ||||||||||||||||||||
| Total Capital to Risk-Weighted Assets (2) | 12.61 | % | 12.47 | % | 12.35 | % | 12.19 | % | 12.19 | % | ||||||||||||||||||||
| Tier I Capital to Risk-Weighted Assets (2) | 11.43 | % | 11.31 | % | 11.18 | % | 10.99 | % | 10.95 | % | ||||||||||||||||||||
| Tier I Capital to Average Assets (2) | 10.14 | % | 10.03 | % | 9.90 | % | 9.61 | % | 9.78 | % | ||||||||||||||||||||
| Tangible common equity to tangible assets | 9.13 | % | 8.92 | % | 8.92 | % | 8.81 | % | 8.62 | % | ||||||||||||||||||||
| Tangible book value per common share (3) | $ | 22.20 | $ | 21.56 | $ | 21.12 | $ | 20.59 | $ | 20.41 | ||||||||||||||||||||
| Asset quality: | ||||||||||||||||||||||||||||||
| Nonaccrual loans | $ | 21,964 | $ | 23,325 | $ | 20,374 | $ | 5,481 | $ | 4,241 | ||||||||||||||||||||
| Other real estate owned | - | - | 487 | - | 222 | |||||||||||||||||||||||||
| Total non-performing assets (4) | $ | 21,964 | $ | 23,325 | $ | 20,861 | $ | 5,481 | $ | 4,463 | ||||||||||||||||||||
| Nonperforming loans as a % of total loans | 1.37 | % | 1.46 | % | 1.31 | % | 0.36 | % | 0.28 | % | ||||||||||||||||||||
| Nonperforming assets as a % of total assets | 1.17 | % | 1.25 | % | 1.14 | % | 0.31 | % | 0.25 | % | ||||||||||||||||||||
| Allowance for loan losses as a % of total loans | 1.20 | % | 1.19 | % | 1.21 | % | 1.23 | % | 1.28 | % | ||||||||||||||||||||
| Allowance for loan losses as a % of nonperforming loans (5) | 87.92 | % | 81.48 | % | 92.28 | % | 344.90 | % | 461.31 | % | ||||||||||||||||||||
| (1) 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 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 101,759, 112,099, 114,336, 75,186 and 96,488 as of September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017, respectively. | |
| (4) The Bank's General ALLL provides a 288% coverage of NPAs that are not already covered by a specific reserve as of September 30, 2018. | |
| BANKWELL FINANCIAL GROUP, INC. | ||||||||||||||||||||
| LOAN & DEPOSIT PORTFOLIO (unaudited) | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| September 30, | June 30, | December 31, | Current QTD | YTD | ||||||||||||||||
| Period End Loan Composition | 2018 | 2018 | 2017 | % Change | % Change | |||||||||||||||
| Residential Real Estate | $ | 182,740 | $ | 188,546 | $ | 193,524 | (3.1 | %) | (5.6 | %) | ||||||||||
| Commercial Real Estate | 1,057,484 | 1,042,689 | 987,242 | 1.4 | % | 7.1 | % | |||||||||||||
| Construction | 93,941 | 100,147 | 101,636 | (6.2 | %) | (7.6 | %) | |||||||||||||
| Total Real Estate Loans | 1,334,165 | 1,331,382 | 1,282,402 | 0.2 | % | 4.0 | % | |||||||||||||
| Commercial Business | 273,065 | 262,625 | 259,995 | 4.0 | % | 5.0 | % | |||||||||||||
| Consumer | 389 | 406 | 619 | (4.2 | %) | (37.2 | %) | |||||||||||||
| Total Loans | $ | 1,607,619 | $ | 1,594,413 | $ | 1,543,016 | 0.8 | % | 4.2 | % | ||||||||||
| September 30, | June 30, | December 31, | Current QTD | YTD | ||||||||||||||||
| Period End Deposit Composition | 2018 | 2018 | 2017 | % Change | % Change | |||||||||||||||
| Noninterest-bearing demand | $ | 162,473 | $ | 168,295 | $ | 172,638 | (3.5 | %) | (5.9 | %) | ||||||||||
| NOW | 56,270 | 66,207 | 58,942 | (15.0 | %) | (4.5 | %) | |||||||||||||
| Money Market | 484,048 | 497,760 | 451,804 | (2.8 | %) | 7.1 | % | |||||||||||||
| Savings | 147,940 | 113,496 | 83,758 | 30.3 | % | 76.6 | % | |||||||||||||
| Time | 642,438 | 619,880 | 631,263 | 3.6 | % | 1.8 | % | |||||||||||||
| Total Deposits | $ | 1,493,169 | $ | 1,465,638 | $ | 1,398,405 | 1.9 | % | 6.8 | % | ||||||||||
| 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 18 vs. June 18 | Sep 18 vs. Sep 17 | |||||||||||||||
| 2018 | 2018 | 2017 | % Change | % Change | ||||||||||||||||
| Service charges and fees | $ | 285 | $ | 265 | $ | 254 | 7.5 | % | 12.2 | % | ||||||||||
| Bank owned life insurance | 267 | 265 | 295 | 0.8 | % | (9.5 | %) | |||||||||||||
| Gains and fees from sales of loans | 150 | 315 | 36 | (52.4 | %) | 316.7 | % | |||||||||||||
| Other | 157 | 262 | 239 | (40.1 | %) | (34.3 | %) | |||||||||||||
| Total noninterest income | $ | 859 | $ | 1,107 | $ | 824 | (22.4 | %) | 4.2 | % | ||||||||||
| For the Quarter Ended | ||||||||||||||||||||
| Noninterest expense | September 30, | June 30, | September 30, | Sep 18 vs. June 18 | Sep 18 vs. Sep 17 | |||||||||||||||
| 2018 | 2018 | 2017 | % Change | % Change | ||||||||||||||||
| Salaries and employee benefits | $ | 4,903 | $ | 4,539 | $ | 3,952 | 8.0 | % | 24.1 | % | ||||||||||
| Occupancy and equipment | 1,771 | 1,731 | 1,449 | 2.3 | % | 22.2 | % | |||||||||||||
| Data processing | 512 | 509 | 621 | 0.6 | % | (17.6 | %) | |||||||||||||
| Marketing | 395 | 479 | 295 | (17.5 | %) | 33.9 | % | |||||||||||||
| Professional services | 321 | 424 | 680 | (24.3 | %) | (52.8 | %) | |||||||||||||
| Director fees | 260 | 274 | 207 | (5.1 | %) | 25.6 | % | |||||||||||||
| FDIC insurance | 203 | 203 | 265 | 0.0 | % | (23.4 | %) | |||||||||||||
| Amortization of intangibles | 24 | 24 | 31 | 0.0 | % | (22.6 | %) | |||||||||||||
| Other | 481 | 581 | 629 | (17.2 | %) | (23.5 | %) | |||||||||||||
| Total noninterest expense | $ | 8,870 | $ | 8,764 | $ | 8,129 | 1.2 | % | 9.1 | % | ||||||||||
| BANKWELL FINANCIAL GROUP, INC. | ||||||||||||
| NONINTEREST INCOME & EXPENSE - YTD (unaudited) | ||||||||||||
| (Dollars in thousands) | ||||||||||||
| For the Nine Months Ended | ||||||||||||
| Noninterest income | September 30, | September 30, | Sep 18 vs. Sep 17 | |||||||||
| 2018 | 2017 | % Change | ||||||||||
| Gains and fees from sales of loans | $ | 835 | $ | 559 | 49.4 | % | ||||||
| Service charges and fees | 806 | 755 | 6.8 | % | ||||||||
| Bank owned life insurance | 795 | 881 | (9.8 | %) | ||||||||
| Net gain on sale of available for sale securities | 222 | 165 | 34.5 | % | ||||||||
| Other | 641 | 728 | (12.0 | %) | ||||||||
| Total noninterest income | $ | 3,299 | $ | 3,088 | 6.8 | % | ||||||
| For the Nine Months Ended | ||||||||||||
| Noninterest expense | September 30, | September 30, | Sep 18 vs. Sep 17 | |||||||||
| 2018 | 2017 | % Change | ||||||||||
| Salaries and employee benefits | $ | 14,470 | $ | 11,681 | 23.9 | % | ||||||
| Occupancy and equipment | 5,119 | 4,580 | 11.8 | % | ||||||||
| Data processing | 1,546 | 1,467 | 5.4 | % | ||||||||
| Professional services | 1,520 | 1,615 | (5.9 | %) | ||||||||
| Marketing | 1,171 | 872 | 34.3 | % | ||||||||
| Director fees | 749 | 683 | 9.7 | % | ||||||||
| FDIC insurance | 620 | 891 | (30.4 | %) | ||||||||
| Amortization of intangibles | 72 | 93 | (22.6 | %) | ||||||||
| Other | 1,570 | 2,062 | (23.9 | %) | ||||||||
| Total noninterest expense | $ | 26,837 | $ | 23,944 | 12.1 | % | ||||||
| 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 | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | ||||||||||||||||||||
| Total Equity | $ | 174,754 | $ | 169,573 | $ | 165,947 | $ | 161,027 | $ | 158,317 | |||||||||||||||
| Less: | |||||||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||||||||
| Other intangibles | 309 | 334 | 358 | 382 | 407 | ||||||||||||||||||||
| Tangible Common Equity | $ | 171,856 | $ | 166,650 | $ | 163,000 | $ | 158,056 | $ | 155,321 | |||||||||||||||
| Total Assets | $ | 1,885,036 | $ | 1,870,802 | $ | 1,831,243 | $ | 1,796,607 | $ | 1,804,938 | |||||||||||||||
| Less: | |||||||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||||||||
| Other intangibles | 309 | 334 | 358 | 382 | 407 | ||||||||||||||||||||
| Tangible Assets | $ | 1,882,138 | $ | 1,867,879 | $ | 1,828,296 | $ | 1,793,636 | $ | 1,801,942 | |||||||||||||||
| Tangible Common Equity to Tangible Assets | 9.13 | % | 8.92 | % | 8.92 | % | 8.81 | % | 8.62 | % | |||||||||||||||
| As of | |||||||||||||||||||||||||
| Computation of Tangible Book Value per Common Share | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | ||||||||||||||||||||
| Total shareholders' equity | $ | 174,754 | $ | 169,573 | $ | 165,947 | $ | 161,027 | $ | 158,317 | |||||||||||||||
| Less: | |||||||||||||||||||||||||
| Preferred stock | - | - | - | - | - | ||||||||||||||||||||
| Common shareholders' equity | $ | 174,754 | $ | 169,573 | $ | 165,947 | $ | 161,027 | $ | 158,317 | |||||||||||||||
| Less: | |||||||||||||||||||||||||
| Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||||||||
| Other intangibles | 309 | 334 | 358 | 382 | 407 | ||||||||||||||||||||
| Tangible common shareholders' equity | $ | 171,856 | $ | 166,650 | $ | 163,000 | $ | 158,056 | $ | 155,321 | |||||||||||||||
| Common shares issued | 7,842,996 | 7,841,720 | 7,831,804 | 7,751,424 | 7,705,975 | ||||||||||||||||||||
| Less: | |||||||||||||||||||||||||
| Shares of unvested restricted stock | 101,759 | 112,099 | 114,336 | 75,186 | 96,488 | ||||||||||||||||||||
| Common shares outstanding | 7,741,237 | 7,729,621 | 7,717,468 | 7,676,238 | 7,609,487 | ||||||||||||||||||||
| Book value per share | $ | 22.57 | $ | 21.94 | $ | 21.50 | $ | 20.98 | $ | 20.81 | |||||||||||||||
| Less: | |||||||||||||||||||||||||
| Effects of intangible assets | $ | 0.37 | $ | 0.38 | $ | 0.38 | $ | 0.39 | $ | 0.39 | |||||||||||||||
| Tangible Book Value per Common Share | $ | 22.20 | $ | 21.56 | $ | 21.12 | $ | 20.59 | $ | 20.41 | |||||||||||||||
| 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 | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | 9/30/2018 | 9/30/2017 | ||||||||||||||||||||||||||||
| Noninterest expense | $ | 8,870 | $ | 8,764 | $ | 9,203 | $ | 8,579 | $ | 8,129 | $ | 26,837 | $ | 23,944 | |||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||
| Amortization of intangible assets | 24 | 24 | 24 | 25 | 31 | 72 | 93 | ||||||||||||||||||||||||||||
| Foreclosed real estate expenses | - | - | - | - | 3 | - | 70 | ||||||||||||||||||||||||||||
| Adjusted noninterest expense | $ | 8,846 | $ | 8,740 | $ | 9,179 | $ | 8,554 | $ | 8,095 | $ | 26,765 | $ | 23,781 | |||||||||||||||||||||
| Net interest income | $ | 14,246 | $ | 13,908 | $ | 13,705 | $ | 13,914 | $ | 13,861 | $ | 41,859 | $ | 40,450 | |||||||||||||||||||||
| Noninterest income | 859 | 1,107 | 1,333 | 1,541 | 824 | 3,299 | 3,088 | ||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||
| Gain on sales of securities | - | - | 222 | - | - | 222 | 165 | ||||||||||||||||||||||||||||
| Loss on sale of foreclosed real estate | - | - | - | (78 | ) | - | - | - | |||||||||||||||||||||||||||
| Adjusted operating revenue | $ | 15,105 | $ | 15,015 | $ | 14,816 | $ | 15,533 | $ | 14,685 | $ | 44,936 | $ | 43,373 | |||||||||||||||||||||
| Efficiency ratio | 58.6 | % | 58.2 | % | 62.0 | % | 55.1 | % | 55.1 | % | 59.6 | % | 54.8 | % | |||||||||||||||||||||
| For the Quarter Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||||||||
| Computation of Return on Average Tangible Common Equity | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | 9/30/2018 | 9/30/2017 | ||||||||||||||||||||||||||||
| Net Income Attributable to Common Shareholders | $ | 4,857 | $ | 4,715 | $ | 4,600 | $ | 2,096 | $ | 4,263 | $ | 14,172 | $ | 11,734 | |||||||||||||||||||||
| Total average shareholders' equity | $ | 173,199 | $ | 168,684 | $ | 164,369 | $ | 161,477 | $ | 156,852 | $ | 168,780 | $ | 152,721 | |||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||
| Average Goodwill | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | 2,589 | ||||||||||||||||||||||||||||
| Average Other intangibles | 325 | 350 | 374 | 398 | 428 | 349 | 458 | ||||||||||||||||||||||||||||
| Average tangible common equity | $ | 170,285 | $ | 165,745 | $ | 161,406 | $ | 158,490 | $ | 153,835 | $ | 165,842 | $ | 149,674 | |||||||||||||||||||||
| Annualized Return on Average Tangible Common Equity | 11.32 | % | 11.41 | % | 11.56 | % | 5.25 | % | 10.99 | % | 11.43 | % | 10.48 | % | |||||||||||||||||||||
| BANKWELL FINANCIAL GROUP, INC. | |||||||||||||||||||||||||||
| NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS | |||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||
| For the Quarter Ended | |||||||||||||||||||||||||||
| September 30, 2018 | September 30, 2017 | ||||||||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | ||||||||||||||||||||||||
| Balance | Interest | Rate (5) | Balance | Interest | Rate (5) | ||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||
| Cash and Fed funds sold | $ | 70,111 | $ | 345 | 1.95 | % | $ | 83,086 | $ | 239 | 1.14 | % | |||||||||||||||
| Securities (1) | 118,311 | 937 | 3.17 | % | 112,066 | 1,014 | 3.62 | % | |||||||||||||||||||
| Loans: | |||||||||||||||||||||||||||
| Commercial real estate | 1,030,336 | 12,445 | 4.73 | % | 927,114 | 10,614 | 4.48 | % | |||||||||||||||||||
| Residential real estate | 185,625 | 1,724 | 3.71 | % | 193,578 | 1,770 | 3.66 | % | |||||||||||||||||||
| Construction (2) | 92,537 | 1,225 | 5.18 | % | 106,373 | 1,305 | 4.80 | % | |||||||||||||||||||
| Commercial business | 279,454 | 3,752 | 5.25 | % | 268,408 | 3,476 | 5.07 | % | |||||||||||||||||||
| Consumer | 393 | 7 | 6.79 | % | 1,149 | 10 | 3.53 | % | |||||||||||||||||||
| Total loans | 1,588,345 | 19,153 | 4.72 | % | 1,496,622 | 17,175 | 4.49 | % | |||||||||||||||||||
| Federal Home Loan Bank stock | 9,297 | 137 | 5.88 | % | 8,544 | 85 | 3.96 | % | |||||||||||||||||||
| Total earning assets | 1,786,064 | 20,572 | 4.51 | % | 1,700,318 | 18,513 | 4.26 | % | |||||||||||||||||||
| Other assets | 68,838 | 69,253 | |||||||||||||||||||||||||
| Total assets | $ | 1,854,902 | $ | 1,769,571 | |||||||||||||||||||||||
| Liabilities and shareholders' equity: | |||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||
| NOW | $ | 59,618 | $ | 54 | 0.36 | % | $ | 58,625 | $ | 19 | 0.13 | % | |||||||||||||||
| Money market | 483,105 | 1,741 | 1.43 | % | 432,753 | 993 | 0.91 | % | |||||||||||||||||||
| Savings | 136,683 | 502 | 1.46 | % | 100,197 | 189 | 0.75 | % | |||||||||||||||||||
| Time | 607,044 | 2,747 | 1.80 | % | 645,317 | 2,215 | 1.36 | % | |||||||||||||||||||
| Total interest-bearing deposits | 1,286,450 | 5,044 | 1.56 | % | 1,236,892 | 3,416 | 1.10 | % | |||||||||||||||||||
| Borrowed money | 216,483 | 1,210 | 2.19 | % | 193,734 | 1,071 | 2.16 | % | |||||||||||||||||||
| Total interest-bearing liabilities | 1,502,933 | $ | 6,254 | 1.65 | % | 1,430,626 | $ | 4,487 | 1.24 | % | |||||||||||||||||
| Noninterest-bearing deposits | 167,198 | 164,565 | |||||||||||||||||||||||||
| Other liabilities | 11,572 | 17,528 | |||||||||||||||||||||||||
| Total liabilities | 1,681,703 | 1,612,719 | |||||||||||||||||||||||||
| Shareholders' equity | 173,199 | 156,852 | |||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,854,902 | $ | 1,769,571 | |||||||||||||||||||||||
| Net interest income (3) | $ | 14,318 | $ | 14,026 | |||||||||||||||||||||||
| Interest rate spread | 2.86 | % | 3.02 | % | |||||||||||||||||||||||
| Net interest margin (4) | 3.21 | % | 3.30 | % | |||||||||||||||||||||||
| (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 $72 thousand and $165 thousand, respectively for the three months ended September 30, 2018 and 2017. |
| (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, 2018 | September 30, 2017 | ||||||||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | ||||||||||||||||||||||||
| Balance | Interest | Rate (5) | Balance | Interest | Rate (5) | ||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||
| Cash and Fed funds sold | $ | 73,823 | $ | 924 | 1.67 | % | $ | 79,333 | $ | 501 | 0.85 | % | |||||||||||||||
| Securities (1) | 118,434 | 2,746 | 3.09 | % | 106,622 | 2,822 | 3.53 | % | |||||||||||||||||||
| Loans: | |||||||||||||||||||||||||||
| Commercial real estate | 1,001,058 | 34,714 | 4.57 | % | 893,962 | 30,528 | 4.50 | % | |||||||||||||||||||
| Residential real estate | 192,254 | 5,309 | 3.68 | % | 194,503 | 5,325 | 3.65 | % | |||||||||||||||||||
| Construction (2) | 93,617 | 3,551 | 5.00 | % | 107,136 | 3,853 | 4.74 | % | |||||||||||||||||||
| Commercial business | 281,348 | 11,088 | 5.20 | % | 249,718 | 9,607 | 5.07 | % | |||||||||||||||||||
| Consumer | 521 | 23 | 5.77 | % | 1,387 | 35 | 3.40 | % | |||||||||||||||||||
| Total loans | 1,568,798 | 54,685 | 4.60 | % | 1,446,706 | 49,348 | 4.50 | % | |||||||||||||||||||
| Federal Home Loan Bank stock | 9,311 | 379 | 5.43 | % | 8,198 | 244 | 3.97 | % | |||||||||||||||||||
| Total earning assets | 1,770,366 | 58,734 | 4.38 | % | 1,640,859 | 52,915 | 4.25 | % | |||||||||||||||||||
| Other assets | 68,141 | 63,527 | |||||||||||||||||||||||||
| Total assets | $ | 1,838,507 | $ | 1,704,386 | |||||||||||||||||||||||
| Liabilities and shareholders' equity: | |||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||
| NOW | $ | 60,616 | $ | 93 | 0.21 | % | $ | 58,096 | $ | 65 | 0.15 | % | |||||||||||||||
| Money market | 482,204 | 4,422 | 1.23 | % | 387,162 | 2,329 | 0.80 | % | |||||||||||||||||||
| Savings | 110,622 | 964 | 1.17 | % | 108,304 | 591 | 0.73 | % | |||||||||||||||||||
| Time | 617,269 | 7,530 | 1.63 | % | 628,521 | 6,107 | 1.30 | % | |||||||||||||||||||
| Total interest-bearing deposits | 1,270,711 | 13,009 | 1.37 | % | 1,182,083 | 9,092 | 1.03 | % | |||||||||||||||||||
| Borrowed money | 221,597 | 3,653 | 2.17 | % | 186,844 | 2,930 | 2.07 | % | |||||||||||||||||||
| Total interest-bearing liabilities | 1,492,308 | $ | 16,662 | 1.49 | % | 1,368,927 | $ | 12,022 | 1.17 | % | |||||||||||||||||
| Noninterest-bearing deposits | 164,604 | 168,778 | |||||||||||||||||||||||||
| Other liabilities | 12,815 | 13,960 | |||||||||||||||||||||||||
| Total liabilities | 1,669,727 | 1,551,665 | |||||||||||||||||||||||||
| Shareholders' equity | 168,780 | 152,721 | |||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,838,507 | $ | 1,704,386 | |||||||||||||||||||||||
| Net interest income (3) | $ | 42,072 | $ | 40,893 | |||||||||||||||||||||||
| Interest rate spread | 2.89 | % | 3.08 | % | |||||||||||||||||||||||
| Net interest margin (4) | 3.17 | % | 3.32 | % | |||||||||||||||||||||||
| (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 $213 thousand and $443 thousand, respectively for the nine months ended September 30, 2018 and 2017. |
| (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: https://www.businesswire.com/news/home/20181030006132/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
www.mybankwell.com
