BWFG

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Net interest margin expanded 30 basis points to 3.58%, fueled by favorable repricing dynamics on both sides of the balance sheet and new loan production at 7.16%. Core deposit growth of $128 million enabled a $44 million reduction in wholesale funding, continuing a long-term strategy that has cut brokered balances by 51% since late 2022. Loan growth accelerated to 3.2% sequentially as new originations in health care, investor CRE, and C&I successfully outpaced portfolio runoff. The SBA division has become a significant revenue diversifier, with first-half loan sale gains of $4.8 million compared to $1.5 million in the prior year period. Credit quality improved as nonperforming assets declined to 46 basis points of total assets, supported by a strengthened reserve coverage of 193% for nonperforming loans. Operating leverage improved significantly, evidenced by a 47.5% efficiency ratio for the quarter, driven by higher net interest income and seasonal expense reductions. Management raised full-year loan growth guidance to 5%-7% and increased the net interest income outlook to a range of $115 million to $117 million. The balance sheet is transitioning toward a rate-neutral position, with floating-rate loans now comprising 43% of the portfolio compared to 23% at the end of 2024. Full-year noninterest expense guidance was raised to $65 million to $67 million to reflect meritocratic incentive compensation and investments in technology and talent. Management expects the benefit from repricing high-cost time deposits to moderate in the fourth quarter as remaining maturities align closer to current market rates. Strategic focus remains on building consolidated Tier 1 capital at the holding company while maintaining peer-leading profitability metrics. Noninterest expense guidance increase is explicitly tied to performance-based compensation, with management committing to maintain or improve the efficiency ratio despite higher costs. SBA production is being intentionally controlled for risk management purposes, as the bank retains the non-guaranteed portions of those loans. The bank is currently modestly asset-sensitive in the immediate term, with approximately $1.6 billion of loans and cash repricing immediately. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth was driven by adjusting originations to outpace expected runoff, focusing on deepening existing relationships in health care, investor CRE, and C&I. Management noted that loan growth is managed by 'priming the pump' through pricing and communication based on anticipated prepayment flows. While no specific target was set, management expects brokered balances to drift down naturally as the bank generates more deposits than required for loan growth. Reaching sub-10% brokered funding within 12 months was characterized as an aggressive timeline, though the trajectory remains downward. The higher expense guide reflects a meritocratic incentive plan where employees are compensated for strong performance and top-line growth. Management emphasized that the efficiency ratio is expected to improve to a range of 50% to 52.8% despite the absolute increase in spending. Headwinds in senior housing have largely subsided in target states due to improved labor availability and revenue growth. Despite increased competition from other banks, Bankwell maintains pricing spreads by competing on execution rather than price.

Bankwell Financial Group, Inc. (BWFG) came out with quarterly earnings of $1.52 per share, beating the Zacks Consensus Estimate of $1.25 per share. This compares to earnings of $1.15 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +21.60%. A quarter ago, it was expected that this company would post earnings of $1.23 per share when it actually produced earnings of $1.41, delivering a surprise of +14.63%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Bankwell Financial Group, which belongs to the Zacks Banks - Northeast industry, posted revenues of $32.89 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 8.24%. This compares to year-ago revenues of $25.95 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Bankwell Financial Group shares have added about 29.9% since the beginning of the year versus the S&P 500's gain of 9.6%. While Bankwell Financial Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Bankwell Financial Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.29 on $31.6 million in revenues for the coming quarter and $5.35 on $124.84 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, First National Corp. (FXNC), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.59 per share in its upcoming report, which represents a year-over-year change of +3.5%. The consensus EPS estimate for the quarter has been revised 1.6% higher over the last 30 days to the current level. First National Corp.'s revenues are expected to be $23.25 million, up 3.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bankwell Financial Group, Inc. (BWFG) : Free Stock Analysis Report First National Corp. (FXNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. GAAP Net Income: $12.4 million, or $1.52 per share. Loan Growth: $93 million increase, 3.2% sequential growth. Gross Loans: $3 billion at quarter end. Core Deposits Growth: $128 million increase, including $72 million in non-interest-bearing accounts. Net Interest Margin: 3.58%, an expansion of 30 basis points from the prior quarter. Non-Interest Income: $3.3 million, with $2.4 million from SBA loan sales. Non-Performing Loans: Decreased by $3.2 million to $15.9 million. Tangible Book Value Per Share: Increased by $2.41 to $40.25. Return on Average Assets: 1.46%. Return on Average Tangible Common Equity: 15.61%. Net Interest Income: $29.5 million, up from $26.9 million in the prior quarter. Non-Interest Expense: Decreased to $15.3 million from $16.9 million. Efficiency Ratio: 47.5% for the quarter. Total Assets: $3.5 billion. Deposits: $3 billion. Shareholders' Equity: $323.5 million. Common Equity Tier 1 Ratio: 11.66%. Leverage Ratio: 10.36%. Warning! GuruFocus has detected 5 Warning Sign with BWFG. Is BWFG fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bankwell Financial Group Inc (NASDAQ:BWFG) reported a strong GAAP net income of $12.4 million, or $1.52 per share, up from $11.3 million, or $1.41 per share in the previous quarter. Loan growth accelerated with balances increasing by $93 million, or 3.2% sequentially, reaching $3 billion at quarter-end. Core deposits grew by $128 million, including a significant $72 million increase in non-interest-bearing accounts. The net interest margin expanded by 30 basis points to 3.58%, driven by favorable repricing dynamics. Non-interest income was a meaningful contributor, totaling $3.3 million, with the SBA division contributing $2.4 million in gain on sale income. The increase in non-interest expenses to $15.3 million from $16.9 million was primarily due to lower salaries and benefits, indicating potential volatility in expense management. The provision for credit losses was $1.2 million, driven by loan growth, which could indicate potential future credit risk. Despite strong performance, the company has not set a target for reducing brokered funding, which remains at 17% of deposits. The company anticipates a moderation in the benefit from repricing time deposits, which could impact future net interest margin expansion. Increased competition in the healthcare lending market could pressure pricing and margins in this segment. Q: What has driven the higher loan growth this quarter, and is future growth still predominantly C&I driven? A: The loan growth is primarily due to adjusting our projections on loan runoff. We have increased our origination efforts to compensate for loans that refinance away or leave the bank. This growth is driven by deepening relationships with existing customers rather than acquiring new ones, focusing on areas like healthcare and C&I. - Matthew Mcneill, President Q: How should we think about the reduction in brokered funding over the next year? Could it go below 10%? A: While reducing brokered funding to below 10% would be aggressive, it is expected to decrease naturally over time as we continue to build consolidated capital at the Holdco. We anticipate generating more deposits than the loans we want to book, which will organically reduce brokered funding. - Christopher Gruseke, CEO Q: Should we expect a slight increase in the net interest margin if the yield curve remains stable? A: Yes, we expect the margin to expand slightly into the third quarter. We still have room for improvement in our time deposits, and we anticipate margin expansion given no other changes. - Courtney Sacchetti, CFO Q: Can you explain the increase in the expense guide despite strong expense control this quarter? A: The increase in the expense guide is due to our meritocratic incentive plan, where better performance leads to higher compensation. We are also investing in technology and processes, but the scale is working for us, and we do not expect a negative impact on the efficiency ratio. - Christopher Gruseke, CEO Q: What is the outlook for non-performing loans and reserves for the rest of the year? A: We have a positive outlook on reducing non-performing loans further in the coming quarters. Our reserves are marked appropriately based on current information, and we do not expect significant changes. - Matthew Mcneill, President and Courtney Sacchetti, CFO Q: How is the SBA business performing, and is there potential for increased non-interest income? A: The SBA business is performing well, but we are intentionally keeping production controlled for risk management purposes. We do not anticipate raising origination targets significantly, as we are focused on steady growth and risk management. - Matthew Mcneill, President Q: Can you discuss the trends in the healthcare business and the competitive landscape? A: The healthcare sector, particularly senior housing, is seeing strength in cash flows and revenue growth. The competitive landscape has become more active, but our strong execution continues to attract clients. We maintain our pricing strategy and focus on value creation. - Matthew Mcneill, President Q: Will the increased expenses in the back half of 2026 carry into 2027, or are they more one-time in nature? A: The increased expenses are more salary-related and will likely continue as long as production remains strong. The expense run rate is expected to tick up, correlated with performance, but we will maintain focus on efficiency. - Courtney Sacchetti, CFO and Christopher Gruseke, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Bankwell Financial Group, Inc.? Here are five stocks we like better. Bankwell Financial Group posted stronger second-quarter 2026 results, with GAAP net income rising to $12.4 million, or $1.52 per share, as margin expansion, loan growth and core deposit gains boosted performance. The bank’s net interest margin expanded 30 basis points to 3.58%, helped by lower deposit costs and better asset yields, while credit quality improved and non-performing loans fell to $15.9 million. Management raised full-year guidance, now expecting 5% to 7% loan growth and $115 million to $117 million in net interest income, while keeping non-interest income guidance unchanged and continuing to reduce wholesale funding. 3 Dividend Stocks With Insiders Buying in 2026 Bankwell Financial Group (NASDAQ:BWFG) reported higher second-quarter 2026 earnings as the company cited margin expansion, loan growth, core deposit gains and continued contributions from its Small Business Administration lending division. Chris Gruseke, Bankwell’s chief executive officer, said the quarter reflected “strong execution” and progress on strategic priorities, including efforts to strengthen the company’s deposit base, reduce wholesale funding and diversify revenue. The company reported GAAP net income of $12.4 million, or $1.52 per share, compared with $11.3 million, or $1.41 per share, in the first quarter. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? “Second quarter marked another period of strong execution with meaningful margin expansion, robust core deposit and loan growth, and continued progress on our strategic priorities, including the continued success of our SBA division,” Gruseke said. Loan balances increased by $93 million, or 3.2%, from the prior quarter, bringing gross loans to $3 billion at quarter-end. Gruseke said new originations continued to outpace portfolio runoff. → 3 Photonics Companies Making Quantum Tech Possible During the question-and-answer portion of the call, Matt McNeill, Bankwell’s president and chief banking officer, said the company’s increased loan growth outlook reflected revised assumptions about runoff rather than a broad change in customer acquisition strategy. “We had a lot of loans refinance away from us or leave the bank last year,” McNeill said. “It impacted our ability to grow the loan book early in the year. We looked at those assumptions and raised them.” → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off McNeill said the company remains relationship-driven, with growth coming from deepening relationships with existing customers across areas including healthcare, investor commercial real estate and commercial and industrial lending. Core deposits rose by $128 million during the quarter. That included $72 million of growth in non-interest-bearing and NOW accounts, with non-interest-bearing deposit growth including about $44 million in increased analyzed checking balances. Gruseke said analyzed checking balances were up approximately $68 million, or about 17%, year to date. The company also reduced wholesale funding by $44 million during the quarter. Gruseke said brokered balances have fallen by $520 million, or about 51%, since their peak at the end of 2022. In response to an analyst question about whether brokered deposits could fall below 10% of deposits over the next year, Gruseke said that would be “aggressive,” but added that the balance should continue to decline over time. Courtney Sacchetti, Bankwell’s chief financial officer and executive vice president, said profitability for the quarter was “outstanding.” Return on average assets was 1.46%, while return on average tangible common equity was 15.61%. Pre-provision net revenue rose 31.4% to $17.5 million, or 2.07% of average assets, from $13.3 million in the prior quarter. Net interest income totaled $29.5 million, up from $26.9 million in the first quarter. Net interest margin expanded 30 basis points to 3.58%. Sacchetti said the margin improvement was driven by favorable repricing on both sides of the balance sheet. Deposit costs improved by 16 basis points to 2.94%, while earning asset yields increased by 11 basis points to 6.26%. She said new loan production carried an average rate of 7.16% and continued to outpace runoff. Sacchetti also said the company repriced $0.6 billion of time deposits in the first half of 2026 at a 36-basis-point improvement, representing an annualized benefit of $2.3 million. However, she noted that the benefit will diminish as much of the higher-cost time deposit base has already been repriced. Asked about the outlook for the margin, Sacchetti said she expected some additional expansion in the third quarter, assuming no other changes, with remaining room in time deposit repricing before the benefit begins to moderate in the fourth quarter and beyond. Non-interest income totaled $3.3 million for the quarter, including $2.4 million of gains on SBA loan sales. Gruseke said SBA loan sale gains totaled $4.8 million for the first half of 2026, compared with $1.5 million in the first half of 2025. “This business remains an important and growing part of diversifying our revenue stream,” Gruseke said. Despite the strong first-half SBA contribution, Bankwell maintained its full-year non-interest income guidance of $12 million to $13 million. In response to an analyst question, McNeill said the company is intentionally keeping SBA production controlled because it retains a portion of the non-SBA-guaranteed pieces of those loans. “For risk management purposes, we’re going slow and steady,” McNeill said. Bankwell reported improvement in credit quality during the quarter. Total non-performing loans declined by $3.2 million to $15.9 million, and non-performing assets as a percentage of total assets fell by 10 basis points to 46 basis points. Reserve coverage of non-performing loans strengthened to approximately 193%. The provision for credit losses was $1.2 million, which Sacchetti said was driven by loan growth. The allowance ended the quarter at 1.03% of total loans. Asked about the remaining non-performing loan portfolio, McNeill said the outlook was “good” and that the company sees paths to further reducing the total in coming quarters. Sacchetti said the company has taken write-downs as appropriate and believes its real estate portfolio is marked appropriately based on available information. Total assets ended the quarter at $3.5 billion, while deposits totaled $3 billion. Shareholders’ equity increased to $323.5 million, and fully diluted tangible book value per share rose to $40.25. Gruseke said the company added $2.41 to tangible book value per share in the first half of 2026. Bankwell raised several full-year 2026 guidance measures. The company now expects loan growth of 5% to 7% and full-year net interest income of $115 million to $117 million. It affirmed its prior non-interest income outlook of $12 million to $13 million. The company also raised its full-year non-interest expense guidance to $65 million to $67 million, citing targeted investments in talent and infrastructure as well as compensation for performance. Gruseke said the higher expense outlook was not expected to negatively affect the efficiency ratio given the updated revenue guidance. Sacchetti said the second-quarter efficiency ratio was 47.5%, bringing the year-to-date ratio to 51.4%. In response to analyst questions, management emphasized that any increase in expenses would be tied to performance and scale. “We don’t want to be in the business and won’t be in the business of increasing expenses and decreasing our efficiency ratio,” McNeill said. “This is about scale.” Gruseke said the company’s first-half performance showed progress on priorities laid out in 2024, including investing in the deposit franchise, paying down wholesale funding, increasing non-interest income and growing its consolidated Tier 1 capital ratio. Bankwell Financial Group, Inc is a bank holding company headquartered in New Canaan, Connecticut, and serves as the parent company of Bankwell Bank. Bankwell Bank provides commercial, business and personal banking services, with branch locations primarily across Fairfield and New Haven counties in Connecticut, along with a New York presence. The company’s deposit offerings include checking, savings and money market accounts, as well as certificates of deposit, all supported by an online and mobile banking platform for convenient account access. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Bankwell Financial Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

NEW CANAAN, Conn., July 23, 2026--(BUSINESS WIRE)--Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $12.4 million, or $1.52 per share for the second quarter of 2026, versus $11.3 million, or $1.41 per share, for the first quarter of 2026. The Company's Board of Directors declared a $0.20 per share cash dividend, payable August 21, 2026 to shareholders of record on August 10, 2026. Discussion of Outlook; Bankwell Financial Group Chief Executive Officer, Christopher R. Gruseke: "I’d like to congratulate our team for another outstanding quarter. Profitability continues to increase as we achieved a 1.46% Return on Average Assets and a 15.61% Return on Average Tangible Common Equity. We continue to execute key strategic objectives by meaningfully growing and improving our deposit base, accelerating loan growth, and establishing a more rate neutral balance sheet. We are particularly proud to note that as we continue to invest in our future, we have achieved a peer-leading 47.5% Efficiency Ratio this quarter. Given our year-to-date results, we are updating prior full year guidance for 2026. We are increasing our Net Interest Income guidance to a range of $115 to $117 million while raising our outlook for loan growth to a range of 5% to 7%. We reiterate our previous guide to Non-interest Income of $12 to $13 million. Reflecting on our momentum this year, we will continue to make targeted investments in talent and infrastructure to support continued growth, and to compensate appropriately our teams for the strong performance they've delivered. Accordingly, we are raising our full-year non-interest expense guide to $65 to $67 million. Given our updated outlook for revenue, we would not expect our increased expense guidance to have a negative impact on our 2026 Efficiency Ratio." Key Points for Second Quarter and Bankwell’s Outlook Core Deposit Growth Funds Robust Loan Production, Reduces Wholesale Funding. Core deposit growth of $128 million during the quarter ended June 30, 2026, including $72.0 million growth in noninterest bearing and NOW deposits, when compared to March 31, 2026. Gross loans grew $93.1 million, or 3.2% compared to March 31, 2026, reaching $3.0 billion at June 30, 2026, as $268.2 million of funded originations, including $26.0 million of SBA originations, outpaced portfolio runoff. Wholesale funding decreased $43.7 million during the quarter ended June 30, 2026, lowering the Wholesale Ratio to 16.3%(1), from 21.2% at year end. As of June 30, 2026, continued core deposit growth has enabled the Company to reduce brokered deposits by 50.6%, or $519.9 million, from their $1,026.6 million peak at December 31, 2022. Net Interest Margin Expands on Favorable Repricing Dynamics. Reported Net Interest Margin expanded 30 basis points to 3.58% for the second quarter of 2026, compared to 3.28% for the quarter ended March 31, 2026. Total deposit costs improved 16 basis points to 2.94% for the quarter ended June 30, 2026, compared to the quarter ended March 31, 2026. Earning asset yields expanded 11 basis points to 6.26% for the quarter ended June 30, 2026, compared to the linked quarter, as the average yield on new loan production of 7.00% continued to exceed the runoff yield. Revenue Growth and Expense Management Drive Positive Operating Leverage. Pre-provision net revenue rose 31.4% to $17.5 million, or 2.07% of average assets, for the quarter ended June 30, 2026, driven by revenue growth and improved efficiency. Net interest income increased to $29.5 million for the quarter ended June 30, 2026, from $26.9 million for the quarter ended March 31, 2026, as net interest margin expanded 30 basis points to 3.58% on favorable repricing dynamics. SBA loan sale gains contributed $2.4 million of the Company's $3.3 million in total noninterest income for the quarter ended June 30, 2026, bringing first-half gains to $4.8 million, compared to $1.5 million in the first half of 2025. Noninterest expense declined to $15.3 million for the quarter ended June 30, 2026, from $16.9 million for the quarter ended March 31, 2026, primarily reflecting lower salaries and employee benefits following seasonal first-quarter compensation costs. The efficiency ratio improved to 47.5% for the quarter ended June 30, 2026, compared to 55.8% for the quarter ended March 31, 2026, resulting in a year-to-date efficiency ratio of 51.4%. Second Quarter 2026 Financial Highlights and Key Performance Indicators (KPIs): Pre-Tax, Pre-Provision Net Revenue(1) ("PPNR") PPNR for the second quarter ended June 30, 2026 was $17.5 million, an increase of 31.4% from $13.3 million recognized for the first quarter ended March 31, 2026. Revenues (net interest income plus noninterest income) for the quarter ended June 30, 2026 were $32.8 million, compared with $30.2 million in the previous quarter. The increase in revenues was primarily due to higher interest income. Noninterest expense for the quarter ended June 30, 2026 was $15.3 million, compared with $16.9 million in the previous quarter. The decrease in noninterest expense was primarily due to a decrease in salaries and employee benefits resulting from seasonal compensation-related costs recognized in the first quarter. Allowance for Credit Losses - Loans ("ACL-Loans") The ACL-Loans was $30.6 million as of June 30, 2026 compared to $29.6 million as of March 31, 2026. The ACL-Loans as a percentage of total loans was 1.03% as of June 30, 2026 compared to 1.03% as of March 31, 2026. The provision for credit losses - loans was $1.0 million for the quarter ended June 30, 2026 primarily driven by loan volume. Total nonperforming loans decreased $3.2 million to $15.9 million as of June 30, 2026, when compared to the previous quarter. Nonperforming assets as a percentage of total assets decreased to 0.46% at June 30, 2026, compared to the previous quarter's ratio of 0.56%. As of June 30, 2026, the ACL-Loans provided 193.14% coverage of total nonperforming loans. Financial Condition & Capital Assets totaled $3.5 billion at June 30, 2026, an increase of $115.7 million, or 3.4% compared to December 31, 2025. Gross loans totaled $3.0 billion at June 30, 2026, an increase of $119.6 million, or 4.2% compared to December 31, 2025. Deposits totaled $3.0 billion at June 30, 2026, an increase of $171.0 million, or 6.0% compared to December 31, 2025. Brokered deposits have decreased $52.1 million or 9.3%, when compared to December 31, 2025. Shareholders’ equity totaled $323.5 million as of June 30, 2026, an increase of $22.0 million compared to December 31, 2025, primarily a result of year-to-date net income of $23.6 million. The increase was partially offset by dividends paid of $3.2 million. As of June 30, 2026, the Bank's regulatory capital ratios were all above 'well capitalized' values, with total risk-based capital, common-equity tier 1 capital and leverage ratios at 12.70%, 11.66%, and 10.36%, respectively. We recommend reading this earnings release in conjunction with the Second Quarter 2026 Investor Presentation, located at https://investor.mybankwell.com/events-and-presentations/ and included as an exhibit to our July 23, 2026 Current Report on Form 8-K. Conference Call Bankwell will host a conference call to discuss the Company’s financial results and business outlook on July 23, 2026, at 11:00 a.m. E.T. The call will be accessible by telephone and webcast using https://investor.mybankwell.com/events-and-presentations/. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event. About Bankwell Financial Group Bankwell Financial Group, Inc. is the holding company for Bankwell Bank ("Bankwell"), a full-service commercial bank headquartered in New Canaan, CT. Bankwell provides businesses and professionals with a range of commercial financing solutions, including working capital lines of credit, SBA loans, acquisition financing, and commercial mortgages, along with treasury management and deposit services. Bankwell emphasizes accessibility, expertise, and responsiveness through experienced local banking teams serving its markets. For more information about this press release, interested parties may contact Christopher R. Gruseke, Chief Executive Officer or Courtney E. Sacchetti, Executive Vice President and Chief Financial Officer of Bankwell Financial Group, Inc. at (203) 652-0166 or at [email protected]. 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 banking industry or 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 tables. 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 noninterest expense control. The Company believes that tangible common equity, tangible assets, tangible common equity to tangible assets, tangible common shareholders' equity, fully diluted tangible book value per common share, efficiency ratio, noninterest expense to average assets, return on average shareholders' equity, return on average tangible shareholders' equity, pre-tax, pre-provision net revenue, net interest margin, net loan (recoveries) charge-offs as a percentage of average loans, pre-tax, pre-provision net revenue on average assets, wholesale ratio, and the dividend payout ratio are useful to evaluate the relative strength of the Company's performance and 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. See "Reconciliation of GAAP to Non-GAAP Measures (unaudited)". View source version on businesswire.com: https://www.businesswire.com/news/home/20260722309184/en/ Contacts Christopher R. Gruseke, Chief Executive OfficerCourtney E. Sacchetti, Executive Vice President and Chief Financial OfficerBankwell Financial Group, Inc.(203) [email protected]

This article first appeared on GuruFocus. Release Date: April 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bankwell Financial Group Inc (NASDAQ:BWFG) reported a strong start to 2026 with GAAP net income of $11.3 million or $1.41 per share. The company achieved solid loan production with $190 million in originations, including $34 million from SBA production. Core deposits increased by $113 million sequentially, with $39 million coming from low-cost deposits. The net interest margin was 328 basis points, with improvements in deposit costs declining by 5 basis points sequentially. Bankwell Financial Group Inc (NASDAQ:BWFG) successfully opened its first full-service branch in New York, enhancing its presence and service capabilities. Net interest margin experienced modest pressure due to asset repricing and an unfavorable day count impact. Non-performing assets increased modestly to 56 basis points of total assets. The efficiency ratio for the quarter was 55.8%, reflecting the seasonality of first-quarter expenses. The provision for credit losses was a release of $1 million, indicating some pressure from loan growth and economic factors. The competitive environment for deposits remains challenging, impacting funding costs. Is BWFG fairly valued? Test your thesis with our free DCF calculator. Q: Are you seeing more competition on the deposit side in the current flat rate environment? A: Yes, the deposit market is very competitive. We are focused on bringing in low-cost deposits to reduce funding costs, and despite the competition, we have successfully grown core deposits this quarter. - Matt McNeil, President and Chief Banking Officer Q: Can you provide an update on SBA loan originations and their impact on fee income? A: We have a strong team and could originate more SBA loans, but we are maintaining our current volume. Our fee income guidance has increased due to higher-than-expected fees from other sources. - Matt McNeil, President and Chief Banking Officer Q: What is the strategy behind opening the Brooklyn office, and how much lending do you expect from it? A: The Brooklyn office primarily serves as a deposit gathering hub, and while some lending will occur, it is not the main focus. The office supports our existing lending activities in NYC. - Matt McNeil, President and Chief Banking Officer Q: Is there a target for reducing CRE concentration below 300% by year-end? A: We do not have a specific target for CRE concentration. While a more diversified loan mix could naturally reduce it, it is not a primary goal. We are comfortable with the current levels. - Chris Grisecki, CEO Q: Can you elaborate on the increase in non-performing assets and expected resolutions? A: The increase was due to a tenant leaving a building, but we expect to resolve this and other credits in the coming quarters, leading to a lower NPA number. - Matt McNeil, President and Chief Banking Officer Q: What are the current yields on new loan originations? A: For the first quarter, the average rate on new loan originations was 7.5%. - Courtney Sacchetti, CFO Q: What factors would lead to more aggressive stock buybacks? A: We monitor stock prices regularly and have a plan in place. We aim to grow our CET1 ratio, and if stock levels remain favorable, we may increase buybacks over the year. - Chris Grisecki, CEO Q: How is the bank managing its funding mix and loan growth strategy? A: We are focused on improving our funding mix by growing core deposits and reducing reliance on expensive borrowings. Loan growth remains disciplined, supported by strong deposit inflows. - Chris Grisecki, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript.

NEW CANAAN, Conn., April 22, 2026--(BUSINESS WIRE)--Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $11.3 million, or $1.41 per share for the first quarter of 2026, versus $9.1 million, or $1.15 per share, for the fourth quarter of 2025. The Company's Board of Directors declared a $0.20 per share cash dividend, payable May 19, 2026 to shareholders of record on May 8, 2026. Discussion of Outlook; Bankwell Financial Group Chief Executive Officer, Christopher R. Gruseke: "We generated outstanding first quarter results while advancing our strategic priorities. Profitability increased during the quarter, reflected in a return on average assets of 1.35%, and the Company grew core deposits by $113 million sequentially. Our SBA division continues to execute measured, profitable growth, with originations this quarter of $34 million, and we have continued to improve our asset and liability mix as floating rate loans now comprise 42% of the loan portfolio. Results for the quarter include a sequential increase to the Company’s non-interest expense of approximately $1.4 million. This increase reflects the timing of some expense recognition, and we believe current trends support our non-interest expense guidance previously provided of $64 to $65 million for the full year. We also affirm prior guidance regarding Net Interest Income and loan growth for 2026. Due to an improved outlook for SBA gains on sale and other commercial fees, however, we are increasing our guidance for Non-Interest Income to a range of $12 to $13 million. As we enter the remainder of the year, we are confident in our credit quality and are well positioned to reduce NPAs in the quarters ahead." Key Points for First Quarter and Bankwell’s Outlook Core Deposit Growth Funds Loan Growth and Reduces Wholesale Reliance. Core deposit growth of $113 million during the quarter ended March 31, 2026, including $39.0 million growth in low‑cost deposits, when compared to December 31, 2025. Brokered deposits and FHLB borrowings declined by $44.5 million and $50.0 million, respectively, lowering the Wholesale Ratio to 18.1%(1) as of March 31, 2026. Since the peak brokered deposit balance of $1,026.6 million at December 31, 2022, the Company has successfully reduced brokered deposits by $512.4 million, or 49.9%, as of March 31, 2026. $27.1 million net loan growth during the quarter ended March 31, 2026, driven by $190 million of originations, including $34 million of SBA originations. Funding Improvements Partially Offset Lower Portfolio Yields in Net Interest Margin. Reported Net Interest Margin was 3.28% for the first quarter of 2026, compared to 3.40% for the quarter ended December 31, 2025. Of the 12 basis-point decline versus the fourth quarter of 2025 Net Interest Margin, approximately 7 basis points relate to the previous quarter’s longer day count. Total deposit costs of 3.10% for the quarter ended March 31, 2026, represent a 5 basis point improvement compared to the quarter ended December 31, 2025. During the quarter, $270 million of time deposits repriced 44 basis points lower. Approximately $1,128 million of time deposits are scheduled to mature over the next 12 months at a weighted average rate of 3.99%; assuming repricing at current market levels and with no additional Fed action, these maturities represent an estimated annualized funding cost savings opportunity of approximately $1.6 million. Yield on new loan production averaged 7.53% for the quarter ended March 31, 2026; however, the overall portfolio yield declined 7 basis points from the previous quarter, to 6.56%. Advancing Strategic Priorities. SBA loan sale gains increased to $2.4 million in the first quarter of 2025, compared to $2.2 million in the fourth quarter of 2025. On February 20, 2026, the Company opened its first full service branch in New York State, located in Bay Ridge, Brooklyn. This addition supports the Bank’s continued focus on serving closely held businesses, their owners, and professionals in key markets. The Brooklyn office is home to an experienced private client banking team and provides businesses and individuals with a dedicated single point of contact, along with tailored commercial banking, lending, and treasury management services. First Quarter 2026 Financial Highlights and Key Performance Indicators (KPIs): Pre-Tax, Pre-Provision Net Revenue(1) ("PPNR") PPNR for the fourth quarter ended March 31, 2026 was $13.3 million, a decrease of 10.2% from $14.9 million recognized for the fourth quarter ended December 31, 2025. Revenues (net interest income plus noninterest income) for the quarter ended March 31, 2026 were $30.2 million, compared with $30.3 million in the previous quarter. Noninterest expense for the quarter ended March 31, 2026 was $16.9 million, compared with $15.5 million in the previous quarter. The increase in noninterest expense was primarily due to an increase in salaries and employee benefits resulting from incremental new hires in support of strategic initiatives, as well as seasonal compensation-related costs recognized in the first quarter. Allowance for Credit Losses - Loans ("ACL-Loans") The ACL-Loans was $29.6 million as of March 31, 2026 compared to $30.7 million as of December 31, 2025. The ACL-Loans as a percentage of total loans was 1.03% as of March 31, 2026 compared to 1.08% as of December 31, 2025. The credit for credit losses - loans was $1.0 million for the quarter ended March 31, 2026. Total nonperforming loans increased $2.7 million to $19.0 million as of March 31, 2026, when compared to the previous quarter. Nonperforming assets as a percentage of total assets increased to 0.56% at March 31, 2026, compared to the previous quarter's ratio of 0.49%. As of March 31, 2026, the ACL-Loans provided 155.39% coverage of total nonperforming loans. Financial Condition & Capital Assets totaled $3.4 billion at March 31, 2026, an increase of $14.0 million, or 0.4% compared to December 31, 2025. Gross loans totaled $2.9 billion at March 31, 2026, an increase of $26.5 million, or 0.9% compared to December 31, 2025. Deposits totaled $2.9 billion at March 31, 2026, an increase of $55.8 million, or 2.0% compared to December 31, 2025. Brokered deposits have decreased $44.5 million or 8.0%, when compared to December 31, 2025. Shareholders’ equity totaled $311.9 million as of March 31, 2026, an increase of $10.4 million compared to December 31, 2025, primarily a result of year-to-date net income of $11.3 million. The increase was partially offset by dividends paid of $1.6 million. As of March 31, 2026, the Bank's regulatory capital ratios were all above 'well capitalized' values, with total risk-based capital, common-equity tier 1 capital and leverage ratios at 12.99%, 11.96%, and 10.31%, respectively. We recommend reading this earnings release in conjunction with the First Quarter 2026 Investor Presentation, located at https://investor.mybankwell.com/events-and-presentations/ and included as an exhibit to our April 22, 2026 Current Report on Form 8-K. Conference Call Bankwell will host a conference call to discuss the Company’s financial results and business outlook on April 23, 2026, at 9:00 a.m. E.T. The call will be accessible by telephone and webcast using https://investor.mybankwell.com/events-and-presentations/. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event. About Bankwell Financial Group Bankwell Financial Group, Inc. is the holding company for Bankwell Bank ("Bankwell"), a full-service commercial bank headquartered in New Canaan, CT. Bankwell provides businesses and professionals with a range of commercial financing solutions, including working capital lines of credit, SBA loans, acquisition financing, and commercial mortgages, along with treasury management and deposit services. Bankwell emphasizes accessibility, expertise, and responsiveness through experienced local banking teams serving its markets. For more information about this press release, interested parties may contact Christopher R. Gruseke, Chief Executive Officer or Courtney E. Sacchetti, Executive Vice President and Chief Financial Officer of Bankwell Financial Group, Inc. at (203) 652-0166 or at [email protected]. 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 banking industry or 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 tables. 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 noninterest expense control. The Company believes that tangible common equity, tangible assets, tangible common equity to tangible assets, tangible common shareholders' equity, fully diluted tangible book value per common share, efficiency ratio, noninterest expense to average assets, average tangible common equity, annualized return on average tangible shareholders' equity, return on average shareholders' equity, return on average tangible shareholders' equity, pre-tax, pre-provision net revenue, net interest margin, net loan charge-offs as a percentage of average loans, pre-tax, pre-provision net revenue on average assets, wholesale ratio, and the dividend payout ratio are useful to evaluate the relative strength of the Company's performance and 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. See "Reconciliation of GAAP to Non-GAAP Measures (unaudited)". View source version on businesswire.com: https://www.businesswire.com/news/home/20260422782177/en/ Contacts Christopher R. Gruseke, Chief Executive Officer Courtney E. Sacchetti, Executive Vice President and Chief Financial Officer Bankwell Financial Group, Inc. (203) 652-0166 [email protected]

Bankwell Financial Group, Inc. (BWFG) came out with quarterly earnings of $1.41 per share, beating the Zacks Consensus Estimate of $1.23 per share. This compares to earnings of $0.87 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +14.63%. A quarter ago, it was expected that this company would post earnings of $1.2 per share when it actually produced earnings of $1.15, delivering a surprise of -4.17%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Bankwell Financial Group, which belongs to the Zacks Banks - Northeast industry, posted revenues of $30.34 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.97%. This compares to year-ago revenues of $23.57 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Bankwell Financial Group shares have added about 11.1% since the beginning of the year versus the S&P 500's gain of 3.2%. While Bankwell Financial Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Bankwell Financial Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.22 on $30.01 million in revenues for the coming quarter and $5.15 on $122.98 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the bottom 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Meridian Bank (MRBK), has yet to report results for the quarter ended March 2026. This company is expected to post quarterly earnings of $0.48 per share in its upcoming report, which represents a year-over-year change of +128.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Meridian Bank's revenues are expected to be $31.08 million, up 14.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bankwell Financial Group, Inc. (BWFG) : Free Stock Analysis Report Meridian Bank (MRBK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Performance was anchored by a deliberate shift toward core deposits, which grew by $113 million sequentially, allowing the bank to reduce expensive wholesale funding by $95 million. Management attributed the 50% reduction in broker deposits since late 2022 to a multi-year strategy of improving the funding mix and lowering overall deposit costs. The net interest margin of 328 basis points faced headwinds from floating rate loans resetting lower and unfavorable day count impacts, though these were partially mitigated by a 5 basis point decline in deposit costs. Strategic positioning in the SBA market remains a core pillar, with $34 million in originations contributing $2.4 million in gain-on-sale income during the quarter. The opening of the Bay Ridge, Brooklyn branch represents a 'people-first' strategy, following an experienced private client team to capture high-quality deposits rather than pursuing a broad geographic expansion. Management noted that while nonperforming assets rose to 56 basis points, they have clear visibility into resolutions for several credits over the coming quarters. Full-year net interest income guidance of $111 million to $112 million is maintained, assuming incremental margin improvement as deposit repricing continues to flow through the balance sheet. Management raised full-year noninterest income guidance to $12 million to $13 million, reflecting stronger-than-anticipated SBA performance and service fee growth. The bank expects an incremental $1.6 million in annualized benefit from the repricing of $1.1 billion in time deposits over the next 12 months, assuming current market rates. Loan growth is projected to remain within the 4% to 5% range for the full year, supported by a strong pipeline and disciplined origination standards. Capital allocation remains focused on reaching a consolidated common equity Tier 1 ratio goal of 11%, which will influence the pace of future share repurchases. First quarter noninterest expense was elevated by approximately $1 million due to seasonal employee compensation and professional services, though the underlying run rate remains at $64 million to $65 million. The bank successfully increased its proportion of variable rate loans to 42% of the portfolio, up from approximately 20% at the start of 2025, to better manage interest rate sensitivity. A $1 million provision release was recorded, driven by the net impact of loan growth and updated economic factors within the CECL model. Commercial Real Estate (CRE) concentration has declined by approximately 40 basis points over the last year as the bank prioritizes a more diversified loan mix including C&I deals. Management acknowledged a highly competitive environment but emphasized success in growing low-cost deposits, noting that 25% to 30% of new inflows were noninterest-bearing or low-cost. The expected 5 basis point margin benefit from CD repricing is based on current market rates and does not assume further interest rate cuts. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is intentionally keeping SBA volume level at approximately $100 million despite having the capacity to originate more, prioritizing a measured approach to the two-year-old division. The increase in fee guidance is driven by both SBA success and higher-than-expected growth in other service fees. The Brooklyn office is primarily a deposit-gathering play rather than a lending expansion, designed to support a specific private client team's existing platform. Management expects only a modest amount of lending to originate from this office, as they have historically served the NYC market without a physical presence. While the bank does not have a formal 300% CRE concentration target, management expects the ratio to naturally decline as they see a better flow of C&I deals and avoid new office exposure. The ratio is expected to potentially decrease by another 10 to 20 basis points over the course of the year. Buyback activity was described as 'nibbling' because the bank is prioritizing the growth of its consolidated CET1 ratio toward an 11% target. Management indicated they may increase repurchase activity over the year depending on stock price and capital levels, but will remain disciplined relative to capital goals. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

GAAP net income of $11.3 million ( $1.41 per share) in Q1 was driven by solid loan production, strong SBA gain‑on‑sale income and lower funding costs; management reported a ROAA of 1.35% and ROTCE of 15%. Net interest margin modestly declined to 3.28% due to floating‑rate loan repricing, but deposit costs improved to 3.10% (March exit ~2.98%), and the company affirmed full‑year net interest income guidance of $111–$112 million while expecting incremental margin improvement as time deposits reprice. Loan originations were $190 million (including $34 million of SBA) with net loan growth of $27 million and a strong pipeline; core deposits rose $113 million, broker/FHLB borrowings were reduced, tangible common equity was 9.17% and CET1 ~10.58%, while NPAs modestly increased to 56 bps and allowance for credit losses was 1.03% of loans. Interested in Bankwell Financial Group, Inc.? Here are five stocks we like better. Bankwell Financial Group (NASDAQ:BWFG) reported a “solid start to 2026” in the first quarter, citing strong earnings, improving funding mix, and continued progress on strategic priorities, according to comments from Chief Executive Officer Chris Gruseke on the company’s quarterly earnings call. For the first quarter, Gruseke said Bankwell posted GAAP net income of $11.3 million, or $1.41 per share. He attributed the results to “solid loan production,” “strong fee income from our SBA platform,” lower funding costs, “meaningful core deposit growth,” and continued balance sheet optimization, including reduced reliance on wholesale funding. → Credo Stock Flashes Strong Bullish Signal—Upswing Just Starting Chief Financial Officer Courtney Sacchetti reported net interest income of $26.9 million, largely unchanged from the prior quarter. Sacchetti said the bank generated a return on average assets of 1.35% and a return on average tangible common equity of 15%. Sacchetti said net interest margin declined modestly to 328 basis points, driven primarily by the repricing of floating-rate loans in a lower-rate environment and an unfavorable day-count impact. She added that, on a day-count normalized basis, the sequential net interest margin variance would have been about 5 basis points. → Allbirds Exits Shoes, Pivots to AI With NewBird Rebrand Management pointed to continued progress in deposit costs. Total deposit costs declined to 310 basis points, down 5 basis points from the fourth quarter, and Sacchetti said the bank exited March with a deposit-cost exit rate of approximately 298 basis points. During the quarter, Sacchetti said the company repriced approximately $300 million of time deposits 44 basis points lower, generating an expected annualized benefit of $1.2 million. Looking ahead, she said about $1.1 billion of time deposits are expected to reprice over the next 12 months, with an average rate reduction of 14 basis points—an incremental annualized benefit of roughly $1.6 million, or about 5 basis points of net interest margin. → Amazon Stock Up 30%: Is AMZN Still a Buy Before Earnings? In the Q&A session, President and Chief Banking Officer Matt McNeill said deposit competition remains “very competitive,” particularly for low-cost deposits, but said the company has still been able to grow core deposits and improve mix. McNeill noted that the company used deposit inflows to help pay down more expensive borrowings. Sacchetti said that as deposit repricing continues and interest rate sensitivity moderates, the company expects incremental margin improvement over the balance of 2026 and affirmed full-year net interest income guidance of $111 million to $112 million. Gruseke said loan growth remained positive, with $190 million of originations in the quarter, including $34 million of SBA production, resulting in net loan growth of $27 million. He said the annualized pace is consistent with previously communicated full-year loan growth guidance of 4% to 5% and added that the pipeline remains strong. On loan pricing, Sacchetti said the average rate on first-quarter originations was 7.5%. Non-interest income totaled $3.3 million for the quarter, including $2.4 million of SBA gain-on-sale income, according to both Gruseke and Sacchetti. Sacchetti said service fee income also continued to grow, driven by an expanding commercial client base. Based on first-quarter results, Sacchetti said the company raised its full-year non-interest income guidance to $12 million to $13 million. McNeill said the SBA team “could definitely originate more SBA loans,” but management is choosing to keep volume “kind of level where it’s at,” and is not increasing the previously discussed $100 million level tied to how the company had been thinking about fee income. Gruseke highlighted core deposit growth of $113 million sequentially, with $39 million coming from low-cost deposits. He said that included $24 million of growth in analyzed checking balances, an 8% increase in the quarter. He also said Bankwell reduced broker deposit balances and Federal Home Loan Banks borrowings by a combined $95 million during the quarter, further improving the funding mix. Since the end of 2022 peak levels, Gruseke said broker deposits have been reduced by $513 million, a 50% decline. On expenses, Sacchetti said non-interest expense rose to $16.9 million in the first quarter due to about $1 million in annual costs that are typically incurred in the first quarter, primarily related to employee compensation and certain professional services. She said the underlying run rate remains consistent with prior guidance of $64 million to $65 million. The efficiency ratio was 55.8%, which Sacchetti said reflects first-quarter seasonality. Credit metrics were described as healthy, though management acknowledged some movement in non-performing assets. Gruseke said non-performing assets increased modestly to 56 basis points of total assets, but said the company has visibility into the resolution of several credits over the coming quarters. In response to an analyst question, McNeill said one increase in non-accruals was related to a commercial real estate situation where a tenant left and the sponsor was not able to make the payment; he said there is equity in the deal and the bank expects to work with the sponsor to dispose of the real estate and be repaid. Sacchetti said the provision for credit losses was a $1 million release in the quarter, driven by the net impact of loan growth and economic factors embedded in the CECL model. The allowance for credit losses ended the quarter at 1.03% of total loans, with coverage of non-performing loans at approximately 155%. On capital and liquidity, Sacchetti said total assets ended the quarter at $3.4 billion and deposits totaled $2.9 billion. She said tangible common equity was 9.17% and the consolidated Common Equity Tier 1 ratio was approximately 10.58%. The company repurchased 3,317 shares during the quarter at an average price of $45.32 per share. McNeill said the company evaluates repurchases when not in blackout periods and indicated buybacks could increase over the course of the year, while noting a continued goal of reaching an 11% CET1 ratio at the holding company over time. Gruseke also noted the opening of the company’s first full-service New York branch during the quarter in Bay Ridge, Brooklyn, which he said is home to an experienced private client banking team that joined in 2025. In the Q&A, McNeill said the branch was “definitely a deposit play,” with modest lending expected, while Gruseke emphasized the company opened the branch to support the needs of the deposit team rather than pursuing a broader branch expansion strategy. Bankwell Financial Group, Inc is a bank holding company headquartered in Westchester, Illinois, and serves as the parent of Bankwell Bank. Through its subsidiary, the company provides a full suite of banking products and services designed for both individual consumers and small‐ to mid‐sized businesses. Bankwell Bank operates multiple branches across suburban Cook and Lake counties, focusing on personalized service and local decision‐making. The company's deposit offerings include checking, savings and money market accounts, as well as certificates of deposit, all supported by an online and mobile banking platform for convenient account access. The article "Bankwell Financial Group Q1 Earnings Call Highlights" was originally published by MarketBeat.