Bankwell Financial Group Reports Record Third Quarter Net Income of $4.3 Million or $0.55 Per Share and Declares Fourth Quarter Dividend
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 |
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| 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 | % | |||||||||||||||||
|
|
|
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| 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/
