Bankwell Financial Group Inc ( (BWFG) ) has realeased its Q3 earnings. Here is a breakdown of the information Bankwell Financial Group Inc presented to its investors.
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Bankwell Financial Group Inc., headquartered in New Canaan, CT, is a full-service commercial bank that blends traditional banking with a growing digital focus, offering a range of financial products and services to businesses and individuals. In the third quarter of 2024, Bankwell Financial Group reported a GAAP net income of $1.9 million, or $0.24 per share, marking an improvement from the previous quarter’s $1.1 million, or $0.14 per share. The company declared a cash dividend of $0.20 per share and announced a new share repurchase plan authorizing the buyback of up to 250,000 shares of its outstanding common stock. However, the third quarter was impacted by an $8.2 million charge-off on an office loan participation, affecting earnings per share by $0.79.
Key financial highlights included a decrease in brokered deposits by $24.2 million, with the company expecting a reduction in funding costs due to maturing time deposits. The net interest margin was reported at 2.72%, slightly down from the previous quarter. Bankwell placed a $27.1 million multifamily real estate loan on non-performing status but has a signed agreement for its sale at par value. The bank’s strategic initiatives continued with investments in new lending partnerships and the launch of a Small Business Administration division.
The company’s financial performance showed a revenue decline to $21.9 million for the quarter, attributed to increased interest expenses, though non-interest income rose significantly due to higher gains from SBA loan sales. Non-interest expenses increased as the company focused on strategic investments. Asset quality concerns were noted with a rise in nonaccrual loans, but the bank maintained a stable capital position, with total assets slightly decreasing to $3.2 billion.
Looking forward, Bankwell Financial Group remains optimistic about its strategic investments and expects favorable conditions for margin expansion, supported by its liability-sensitive balance sheet. The company is focused on diversifying its assets and improving profitability through its commercial lending platform.
