バンクウェルファイナンシャルGの適時開示・決算・その他

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): April 24, 2024

Bankwell Financial Group, Inc.

(Exact name of registrant as specified in its charter)


Connecticut	001-36448	20-8251355
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

258 Elm Street

New Canaan, Connecticut 06840

(203) 652-0166

(Address of Principal Executive Officers and Telephone Number)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, no par value per share	BWFG	NASDAQ Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).


Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			☐


Item 2.02			Results of Operations and Financial Condition

			On April 24, 2024, Bankwell Financial Group, Inc., the holding company for Bankwell Bank, issued a press release describing its results of operations for the period ended March 31, 2024. A copy of the press release is included as Exhibit 99.1 to this current report on Form 8-K and is incorporated herein by reference.

			The information furnished under this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that section. The information shall not be deemed incorporated by reference into any other filing with the Securities and Exchange Commission made by the Company, regardless of any general incorporation language in such filing.

Item 7.01			Regulation FD Disclosure

			On April 24, 2024, Bankwell Financial Group, Inc., the holding company for Bankwell Bank, issued slide presentation material, which includes among other things, a review of financial results and trends through the period ended March 31, 2024. A copy of the material will also be available on the Company’s website, http://investor.mybankwell.com/CorporateProfile. A copy of the Presentation Material is included as Exhibit 99.2 to this current report on Form 8-K and is incorporated herein by reference.

			The information furnished under this Item 7.01, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that section. The information shall not be deemed incorporated by reference into any other filing with the Securities and Exchange Commission made by the Company, regardless of any general incorporation language in such filing.

Item 8.01			Other Events

			On April 24, 2024, Bankwell Financial Group, Inc., parent company of Bankwell Bank, announced its Board of Directors has voted to pay a quarterly dividend in the amount of $0.20 per share on May 21, 2024 to all shareholders of record as of May 10, 2024.

Item 9.01			Financial Statements and Exhibits
(a)			Not applicable.
(b)			Not applicable.
(c)			Not applicable.
(d)			Exhibits.


Exhibit Number			Description

99.1			Press Release Dated April 24, 2024
99.2			Presentation Materials
104			Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			BANKWELL FINANCIAL GROUP, INC.
			Registrant



April 24, 2024			By: /s/ Courtney E. Sacchetti
			Courtney E. Sacchetti
			Executive Vice President
			and Chief Financial Officer

EX-99.1 2 ex991q12024earningsrelease.htm EX-99.1 Document

BANKWELL FINANCIAL GROUP REPORTS OPERATING RESULTS FOR THE FIRST QUARTER AND DECLARES SECOND QUARTER DIVIDEND

New Canaan, CT – April 24, 2024 – Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $3.8 million, or $0.48 per share for the first quarter of 2024, versus $10.4 million, or $1.33 per share, for the same period in 2023. Pre-tax, pre-provision net revenue ("PPNR") was $8.8 million, or $1.14 per share, for the first quarter of 2024, versus $14.4 million, or $1.89 per share for the same period in 2023.

The Company's Board of Directors declared a $0.20 per share cash dividend, payable May 21, 2024 to shareholders of record on May 10, 2024.

We recommend reading this earnings release in conjunction with the First Quarter 2024 Investor Presentation, located at http://investor.mybankwell.com/Presentations and included as an exhibit to our April 24, 2024 Current Report on Form 8-K.

Notes Bankwell Financial Group President and CEO, Christopher R. Gruseke:

"Our first quarter earnings of $0.48 per share include the impact of $3.7 million in charge offs related to previously disclosed non-performing loans. The main components of the charge offs were approximately $2.8 million, attributable to a suburban Connecticut office building, and approximately $0.7 million, attributable to the non-guaranteed portions of 2 SBA loans. We encourage investors to review the accompanying Investor Presentation for further details regarding the Bank’s loan portfolio.

Absent any action from the Federal Reserve, we expect our net interest margin to trough slightly higher and earlier than previously projected at approximately 255 to 265 basis points during 2Q 2024. This margin, coupled with the Company’s consistently efficient expense structure, provides a solid earnings base during this challenging interest rate environment. We also re-affirm prior guidance regarding non-interest expense of $53 to $54 million for the full year 2024."

First Quarter 2024 Highlights:

•PPNR was $8.8 million for the quarter ended March 31, 2024.

•Net income of $3.8 million reflects the impact of $3.7 million of loan charge offs.

•Total gross loans were $2.7 billion, decreasing $39.0 million, or 1.4%, compared to December 31, 2023.

•Average yield on total loans was 6.37% for the quarter ended March 31, 2024.

•Nonperforming loans as a percentage of total loans was 1.74% as of March 31, 2024, down from 1.81% as of December 31, 2023.

•Deposits were $2.7 billion, decreasing $63.2 million, or 2.3%, compared to December 31, 2023.

•Brokered deposits decreased $120.0 million, when compared to December 31, 2023.

•Noninterest bearing deposits increased 8.7% to $376.2 million, when compared to December 31, 2023.

•FDIC-insured deposits totaled $1.9 billion and represent 71.4% of total deposits as of March 31, 2024.

•Return on average assets was 0.47% for the quarter ended March 31, 2024.

•Return on average tangible common equity was 5.65% for the quarter ended March 31, 2024.

•The net interest margin was 2.71% for the quarter ended March 31, 2024.

•Noninterest expense to average assets was 1.66% for the quarter ended March 31, 2024.

•Investment securities totaled $126.2 million and represent 4.0% of total assets.

•The Company repurchased 45,924 shares at a weighted average price of $25.33 per share through April 11, 2024.

Earnings and Performance

Revenues (net interest income plus noninterest income) for the quarter ended March 31, 2024 were $22.1 million, versus $27.1 million for the quarter ended March 31, 2023. The decrease in revenues for the quarter was attributable to an increase in interest expense and lower gains from loan sales partially offset by an increase in interest on loans, given higher loan yields1 and prepayment fees.

Net income for the quarter ended March 31, 2024 was $3.8 million, versus $10.4 million for the quarter ended March 31, 2023. The decrease in net income for the quarter ended 2024 was primarily due to the aforementioned decrease in revenues and an increase in provision for credit losses.

Basic and diluted earnings per share were $0.48 and $0.48, respectively, for the quarter ended March 31, 2024 compared to basic and diluted earnings per share of $1.34 and $1.33, respectively, for the quarter ended March 31, 2023.

The net interest margin (fully taxable equivalent basis) for the quarters ended March 31, 2024 and March 31, 2023 was 2.71% and 3.24%, respectively. The decrease in the net interest margin was due to an increase in funding costs partially offset by an increase in interest income on earning assets.

Allowance for Credit Losses - Loans ("ACL-Loans")

The ACL-Loans was $28.0 million as of March 31, 2024 compared to $27.9 million as of December 31, 2023. The ACL-Loans as a percentage of total loans was 1.04% as of March 31, 2024 compared to 1.03% as of December 31, 2023. Provision for credit losses was $3.7 million for the quarter ended March 31, 2024. The provision for credit losses for the quarter was primarily a result of net loan charge offs of $3.7 million.

Financial Condition

Assets totaled $3.2 billion at March 31, 2024, a decrease of $60.2 million or 1.9% compared to December 31, 2023. Gross loans totaled $2.7 billion at March 31, 2024, a decrease of $39.0 million, or 1.4% compared to December 31, 2023. Deposits totaled $2.7 billion at March 31, 2024, a decrease of $63.2 million, or 2.3% compared to December 31, 2023.

Capital

Shareholders’ equity totaled $268.0 million as of March 31, 2024, an increase of $2.3 million compared to December 31, 2023, primarily a result of net income of $3.8 million for the three months ended March 31, 2024. The increase was partially offset by dividends paid of $1.6 million and share repurchases of $0.9 million.

1 - The increase in overall loan yields was 50 bps for the quarter ended March 31, 2024.

About Bankwell Financial Group

Bankwell is a commercial bank that serves the banking needs of residents and businesses throughout Fairfield and New Haven Counties, Connecticut. For more information about this press release, interested parties may contact Christopher R. Gruseke, President and Chief Executive Officer or Courtney E. Sacchetti, 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 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, adjusted noninterest expense, operating revenue, efficiency ratio, average tangible common equity, annualized return on average tangible common equity, return on average assets, return on average shareholders' equity, pre-tax, pre-provision net revenue, 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.

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS (unaudited)

(Dollars in thousands)


	March 31, 2024		December 31, 2023		March 31, 2023
ASSETS
Cash and due from banks	$	245,043	$	267,521	$	249,812
Federal funds sold	2,584		1,636		27,370
Cash and cash equivalents	247,627		269,157		277,182

Investment securities
Marketable equity securities, at fair value	2,069		2,070		2,028
Available for sale investment securities, at fair value	108,417		109,736		103,171
Held to maturity investment securities, at amortized cost	15,739		15,817		15,931
Total investment securities	126,225		127,623		121,130
Loans receivable (net of ACL-Loans of $27,991, $27,946, and $27,998 at March 31, 2024, December 31, 2023, and March 31, 2023, respectively)	2,646,686		2,685,301		2,724,514

Accrued interest receivable	15,104		14,863		14,261
Federal Home Loan Bank stock, at cost	5,655		5,696		5,234
Premises and equipment, net	26,161		27,018		27,619
Bank-owned life insurance	51,764		51,435		50,524
Goodwill	2,589		2,589		2,589

Deferred income taxes, net	9,137		9,383		8,692
Other assets	24,326		22,417		20,573
Total assets	$	3,155,274	$	3,215,482	$	3,252,318

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits
Noninterest bearing deposits	$	376,248	$	346,172	$	377,667
Interest bearing deposits	2,297,274		2,390,585		2,420,641
Total deposits	2,673,522		2,736,757		2,798,308

Advances from the Federal Home Loan Bank	90,000		90,000		90,000
Subordinated debentures	69,266		69,205		69,020
Accrued expenses and other liabilities	54,454		53,768		52,683
Total liabilities	2,887,242		2,949,730		3,010,011

Shareholders’ equity
Common stock, no par value	118,401		118,247		115,875
Retained earnings	151,350		149,169		127,566
Accumulated other comprehensive (loss)	(1,719)		(1,664)		(1,134)
Total shareholders’ equity	268,032		265,752		242,307

Total liabilities and shareholders’ equity	$	3,155,274	$	3,215,482	$	3,252,318

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

(Dollars in thousands, except share data)


	For the Quarter Ended
	March 31, 2024		December 31, 2023		March 31, 2023
Interest and dividend income
Interest and fees on loans	$	43,325	$	44,122	$	39,723
Interest and dividends on securities	1,130		1,108		1,000
Interest on cash and cash equivalents	3,826		4,164		3,568
Total interest and dividend income	48,281		49,394		44,291

Interest expense
Interest expense on deposits	25,362		25,307		17,033
Interest expense on borrowings	1,772		1,842		1,717
Total interest expense	27,134		27,149		18,750

Net interest income	21,147		22,245		25,541
Provision (credit) for credit losses	3,683		(960)		826
Net interest income after provision for credit losses	17,464		23,205		24,715

Noninterest income
Bank owned life insurance	329		316		281
Service charges and fees	304		688		286


Gains and fees from sales of loans	321		79		931
Other	(39)		46		28
Total noninterest income	915		1,129		1,526

Noninterest expense
Salaries and employee benefits	6,291		6,088		6,081
Occupancy and equipment	2,322		2,231		2,084
Professional services	1,065		1,033		1,322
Data processing	740		747		671
Director fees	900		605		392
FDIC insurance	930		1,026		1,062
Marketing	114		139		151

Other	935		995		928
Total noninterest expense	13,297		12,864		12,691

Income before income tax expense	5,082		11,470		13,550
Income tax expense	1,319		2,946		3,171
Net income	$	3,763	$	8,524	$	10,379

Earnings Per Common Share:
Basic	$	0.48	$	1.09	$	1.34
Diluted	$	0.48	$	1.09	$	1.33

Weighted Average Common Shares Outstanding:
Basic	7,663,521		7,603,938		7,554,689
Diluted	7,687,679		7,650,451		7,616,671
Dividends per common share	$	0.20	$	0.20	$	0.20

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)


	For the Quarter Ended
	March 31, 2024		December 31, 2023		March 31, 2023
Performance ratios:
Return on average assets	0.47	%	1.03	%	1.30	%
Return on average shareholders' equity	5.59	%	12.82	%	17.48	%
Return on average tangible common equity	5.65	%	12.95	%	17.67	%
Net interest margin	2.71	%	2.81	%	3.24	%
Efficiency ratio(1)	60.3	%	55.0	%	46.9	%
Net loan charge-offs as a % of average loans	0.11	%	0.01	%	0.02	%
Dividend payout ratio(2)	41.67	%	18.35	%	15.04	%

(1)Efficiency ratio is defined as noninterest expense, less other real estate owned expenses and amortization of intangible assets, divided by our operating revenue, which is equal to net interest income plus noninterest 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)The dividend payout ratio is calculated by dividing dividends per share by earnings per share.


	As of
	March 31, 2024			December 31, 2023			March 31, 2023
Capital ratios:
Total Common Equity Tier 1 Capital to Risk-Weighted Assets(1)	11.60		%	11.30		%	10.00		%
Total Capital to Risk-Weighted Assets(1)	12.63		%	12.32		%	10.98		%
Tier I Capital to Risk-Weighted Assets(1)	11.60		%	11.30		%	10.00		%
Tier I Capital to Average Assets(1)	10.09		%	9.81		%	9.22		%
Tangible common equity to tangible assets	8.42		%	8.19		%	7.38		%
Fully diluted tangible book value per common share	$	33.57		$	33.39		$	30.56

(1)Represents Bank ratios. Current period capital ratios are preliminary subject to finalization of the FDIC Call Report.

BANKWELL FINANCIAL GROUP, INC.

ASSET QUALITY (unaudited)

(Dollars in thousands)


	For the Quarter Ended
	March 31, 2024		December 31, 2023		March 31, 2023
ACL-Loans:
Balance at beginning of period	$	27,946	$	29,284	$	22,431
Day 1 CECL Adjustment on January 1, 2023	—		—		5,079
Beginning balance January 1, 2023	27,946		29,284		27,510
Charge-offs:
Residential real estate	(132)		—		—
Commercial real estate	(3,306)		(824)		—
Commercial business	(197)		—		(440)
Consumer	(49)		(15)		(12)
Total charge-offs	(3,684)		(839)		(452)
Recoveries:
Commercial real estate	—		—		—
Commercial business	27		464		—
Consumer	4		3		6
Total recoveries	31		467		6
Net loan (charge-offs) recoveries	(3,653)		(372)		(446)
Provision (credit) for credit losses - loans	3,698		(966)		934
Balance at end of period	$	27,991	$	27,946	$	27,998


	As of
	March 31, 2024			December 31, 2023			March 31, 2023
Asset quality:
Nonaccrual loans
Residential real estate	$	1,237		$	1,386		$	1,443
Commercial real estate	19,083			23,009			1,912
Commercial business	16,841			15,430			1,528
Construction	9,382			9,382			9,382
Consumer	—			—			—
Total nonaccrual loans	46,543			49,207			14,265
Other real estate owned	—			—			—
Total nonperforming assets	$	46,543		$	49,207		$	14,265

Nonperforming loans as a % of total loans	1.74		%	1.81		%	0.52		%
Nonperforming assets as a % of total assets	1.48		%	1.53		%	0.44		%
ACL-loans as a % of total loans	1.04		%	1.03		%	1.01		%
ACL-loans as a % of nonperforming loans	60.14		%	56.79		%	196.27		%
Total past due loans to total loans	1.44		%	0.78		%	0.94		%

Total nonaccrual loans decreased $2.7 million to $46.5 million as of March 31, 2024 when compared to December 31, 2023. The reduction is primarily due to charge-offs taken during the quarter ended March 31, 2024.

Nonperforming assets as a percentage of total assets decreased to 1.48% at March 31, 2024 from 1.53% at December 31, 2023. The ACL-Loans at March 31, 2024 was $28.0 million, representing 1.04% of total loans.

BANKWELL FINANCIAL GROUP, INC.

LOAN & DEPOSIT PORTFOLIO (unaudited)

(Dollars in thousands)


Period End Loan Composition	March 31, 2024		December 31, 2023		Current QTD % Change
Residential Real Estate	$	49,098	$	50,931	(3.6)	%
Commercial Real Estate(1)	1,927,636		1,947,648		(1.0)
Construction	151,967		183,414		(17.1)
Total Real Estate Loans	2,128,701		2,181,993		(2.4)

Commercial Business	508,912		500,569		1.7

Consumer	41,946		36,045		16.4
Total Loans	$	2,679,559	$	2,718,607	(1.4)	%

(1) Includes owner occupied commercial real estate.

Gross loans totaled $2.7 billion at March 31, 2024, a decrease of $39.0 million or 1.4% compared to December 31, 2023.


Period End Deposit Composition	March 31, 2024		December 31, 2023		Current QTD % Change
Noninterest bearing demand	$	376,248	$	346,172	8.7	%
NOW	95,227		90,829		4.8
Money Market	818,408		887,352		(7.8)
Savings	92,188		97,331		(5.3)
Time	1,291,451		1,315,073		(1.8)
Total Deposits	$	2,673,522	$	2,736,757	(2.3)	%

Total deposits were $2.7 billion at March 31, 2024, a decrease of $63.2 million, or 2.3%, when compared to December 31, 2023. Brokered deposits have decreased $120.0 million, when compared to December 31, 2023.

BANKWELL FINANCIAL GROUP, INC.

NONINTEREST EXPENSE (unaudited)

(Dollars in thousands)


	For the Quarter Ended
Noninterest expense	March 31, 2024		December 31, 2023		March 31, 2023		Mar 24 vs. Dec 23 % Change		Mar 24 vs. Mar 23 % Change
Salaries and employee benefits	$	6,291	$	6,088	$	6,081	3.3	%	3.5	%
Occupancy and equipment	2,322		2,231		2,084		4.1		11.4
Professional services	1,065		1,033		1,322		3.1		(19.4)
Data processing	740		747		671		(0.9)		10.3
Director fees	900		605		392		48.8		129.6
FDIC insurance	930		1,026		1,062		(9.4)		(12.4)
Marketing	114		139		151		(18.0)		(24.5)
Other	935		995		928		(6.0)		0.8
Total noninterest expense	$	13,297	$	12,864	$	12,691	3.4	%	4.8	%

Noninterest expense increased by $0.6 million to $13.3 million for the quarter ended March 31, 2024 compared to the quarter ended March 31, 2023. The increase in noninterest expense was primarily driven by an increase in director fees related to timing of compensation and accelerated vestings in connection with the death of a director.

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	March 31, 2024			December 31, 2023			March 31, 2023
Total Equity	$	268,032		$	265,752		$	242,307
Less:
Goodwill	2,589			2,589			2,589
Other intangibles	—			—			—
Tangible Common Equity	$	265,443		$	263,163		$	239,718

Total Assets	$	3,155,274		$	3,215,482		$	3,252,318
Less:
Goodwill	2,589			2,589			2,589
Other intangibles	—			—			—
Tangible Assets	$	3,152,685		$	3,212,893		$	3,249,729

Tangible Common Equity to Tangible Assets	8.42		%	8.19		%	7.38		%


	As of
Computation of Fully Diluted Tangible Book Value per Common Share	March 31, 2024		December 31, 2023		March 31, 2023
Total shareholders' equity	$	268,032	$	265,752	$	242,307
Less:
Preferred stock	—		—		—
Common shareholders' equity	$	268,032	$	265,752	$	242,307
Less:
Goodwill	2,589		2,589		2,589
Other intangibles	—		—		—
Tangible common shareholders' equity	$	265,443	$	263,163	$	239,718

Common shares issued and outstanding	7,908,180		7,882,616		7,843,438







Fully Diluted Tangible Book Value per Common Share	$	33.57	$	33.39	$	30.56


	For the Quarter Ended
Computation of PPNR	March 31, 2024		December 31, 2023		March 31, 2023
Income before income tax expense	$	5,082	$	11,470	$	13,550
Add:
Provision (credit) for credit losses	3,683		(960)		826
PPNR	$	8,765	$	10,510	$	14,376

BANKWELL FINANCIAL GROUP, INC.

EARNINGS PER SHARE ("EPS") (unaudited)

(Dollars in thousands, except share data)


	Three Months Ended March 31,
		2024		2023
		(In thousands, except per share data)
Net income		$	3,763	$	10,379
Dividends to participating securities(1)		(40)		(42)
Undistributed earnings allocated to participating securities(1)		(66)		(230)
Net income for earnings per share calculation		$	3,657	$	10,107

Weighted average shares outstanding, basic		7,664		7,555
Effect of dilutive equity-based awards(2)		24		62
Weighted average shares outstanding, diluted		7,688		7,617
Net earnings per common share:
Basic earnings per common share		$	0.48	$	1.34
Diluted earnings per common share		$	0.48	$	1.33

(1) Represents dividends paid and undistributed earnings allocated to unvested stock-based awards that contain non-forfeitable rights to dividends.

(2) Represents the effect of the assumed exercise of stock options and the vesting of restricted shares, as applicable, utilizing the treasury stock method.

BANKWELL FINANCIAL GROUP, INC.

NONINTEREST INCOME (unaudited)

(Dollars in thousands)


	For the Quarter Ended
Noninterest income	March 31, 2024		December 31, 2023		March 31, 2023		Mar 24 vs. Dec 23 % Change		Mar 24 vs. Mar 23 % Change
Bank owned life insurance	$	329	$	316	$	281	4.1	%	17.1	%
Service charges and fees	304		688		286		(55.8)		6.3


Gains and fees from sales of loans	321		79		931		306.3		Unfavorable
Other	(39)		46		28		Unfavorable		Unfavorable
Total noninterest income	$	915	$	1,129	$	1,526	(19.0)	%	(40.0)	%

Noninterest income decreased $0.6 million for the quarter ended March 31, 2024 compared to the quarter ended March 31, 2023. The decrease in noninterest income was driven by lower gains as a result of fewer SBA loan sales for the quarter ended March 31, 2024.

BANKWELL FINANCIAL GROUP, INC.

NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - QTD (unaudited)

(Dollars in thousands)


	For the Quarter Ended
	March 31, 2024						March 31, 2023
	Average Balance		Interest		Yield/ Rate (4)		Average Balance		Interest		Yield/ Rate (4)
Assets:
Cash and Fed funds sold	$	292,662	$	3,826	5.26	%	$	315,566	$	3,568	4.59	%
Securities(1)	134,737		1,060		3.15		129,881		956		2.49
Loans:
Commercial real estate	1,922,413		28,643		5.89		1,918,551		25,585		5.33
Residential real estate	50,213		718		5.72		59,444		643		4.33
Construction	161,047		2,973		7.30		166,254		2,825		6.80
Commercial business	517,102		10,284		7.87		542,399		10,421		7.68
Consumer	39,964		707		7.12		18,536		249		5.45
Total loans	2,690,739		43,325		6.37		2,705,184		39,723		5.87
Federal Home Loan Bank stock	5,702		121		8.51		5,271		94		7.27
Total earning assets	3,123,840		$	48,332	6.12	%	3,155,902		$	44,341	5.62	%
Other assets	90,905						84,063
Total assets	$	3,214,745					$	3,239,965

Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW	$	91,674	$	39	0.17	%	$	92,918	$	37	0.16	%
Money market	883,851		9,146		4.16		907,739		6,385		2.85
Savings	92,972		714		3.09		136,333		727		2.16
Time	1,317,069		15,463		4.72		1,252,564		9,883		3.20
Total interest bearing deposits	2,385,566		25,362		4.28		2,389,554		17,032		2.89
Borrowed Money	159,226		1,772		4.48		161,202		1,717		4.26
Total interest bearing liabilities	2,544,792		$	27,134	4.29	%	2,550,756		$	18,749	2.98	%
Noninterest bearing deposits	337,020						403,920
Other liabilities	62,356						44,406
Total liabilities	2,944,168						2,999,082
Shareholders' equity	270,577						240,883
Total liabilities and shareholders' equity	$	3,214,745					$	3,239,965
Net interest income(2)			$	21,198					$	25,592
Interest rate spread					1.83	%					2.64	%
Net interest margin(3)					2.71	%					3.24	%

(1)Average balances and yields for securities are based on amortized cost.

(2)The adjustment for securities and loans taxable equivalency amounted to $51 thousand and $50 thousand for the quarters

ended March 31, 2024 and 2023, respectively.

(3)Annualized net interest income as a percentage of earning assets.

(4)Yields are calculated using the contractual day count convention for each respective product type.

EX-99.2 3 a1q2024bwfginvestorprese.htm EX-99.2 a1q2024bwfginvestorprese

BWFG | LISTED | NASDAQ 1Q24 Investor Presentation April 24th, 2024

2 BWFG LISTED NASDAQ BWFG LISTED NASDAQ This presentation may contain certain forward-looking statements about Bankwell Financial Group, Inc. (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,” “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. Safe Harbor

3 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Table of Contents • 1Q24 Performance • Deposits & Liquidity • Loans • Credit Quality & Capital • Bankwell History & Overview

BWFG | LISTED | NASDAQ 1Q24 Performance

5 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Return on Average Tangible Common Equity 5.65% Total Risk Based Capital (Bank) 12.63% Tangible Book Value Per Share $33.57 1Q24 Overview Net Income $3.8 Earnings Per Share (EPS) $0.48 PPNR1 Return on Average Assets 1.10% Return on Average Assets 0.47% Non-Interest Expense / Assets 1.66% Dollars in millions, except per share data 1Q24 Highlights • $8.8 million pre-tax, pre provision net revenue1 • $3.8 million Net income reflects impact of $3.7 million of loan charge offs • $120 million reduction in brokered deposits during the quarter • 8.7% increase in noninterest bearing deposits from year-end 2023, to 14.1% of deposits • $33.57 Tangible Book Value reflects a 14% CAGR since 2020 • 45,924 shares repurchased at average price of $25.33 through April 11, 2024 1 Pre-tax, pre-provision net revenue (“PPNR”) is a non-GAAP metric & excludes provision for loan losses and income tax expense

6 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Income Statement 1Q24 4Q23 Var1 Total Interest Income $48.3 $49.4 $(1.1) Total Interest Expense $27.1 $27.1 $0.0 Net Interest Income $21.1 $22.2 $(1.1) Non-Interest Income $0.9 $1.1 $(0.2) Non-Interest Expense $13.3 $12.9 $(0.4) Pre-Tax, Pre-Provision Net Revenue $8.8 $10.5 $(1.7) Provision (credit) for Credit Losses $3.7 $(1.0) $(4.6) Pre-Tax Income $5.1 $11.5 $(6.4) Income Tax Expense $1.3 $2.9 $1.6 Reported Net Income $3.8 $8.5 $(4.7) EPS $0.48 $1.09 $(0.61) Pre-Tax, Pre-Provision Net Revenue per share2 $1.14 $1.37 $(0.23) 1 Variances are rounded based on actual whole dollar amounts 2 Pre-tax, pre-provision net revenue per share is a non-GAAP metric & excludes provision for loan losses and income tax expense Dollars in millions, except per share data Balance Sheet 1Q24 4Q23 Var1 Cash & Cash Equivalents $248 $269 $(21) Investment Securities $126 $128 $(2) Loans Receivable, net $2,647 $2,685 $(38) All Other Assets $135 $133 $2 Total Assets $3,155 $3,215 $(60) Total Deposits $2,674 $2,737 $(63) Total Borrowings $159 $159 $0 Other Liabilities $54 $54 $0 Total Liabilities $2,887 $2,950 $(63) Equity $268 $265 $3 Total Liabilities & Equity $3,155 $3,215 $(60) 1Q24 Consolidated Financial Statements Linked Quarter

7 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 0.70% 1.49% 2.05% 1.50% 1.10% 2020 2021 2022 2023 1Q24 PPNR Return on Average Assets Performance Trends $0.75 $3.36 $4.79 $4.67 $0.48 2020 2021 2022 2023 1Q24 Diluted EPS 0.28% 1.17% 1.44% 1.13% 0.47% 2020 2021 2022 2023 1Q24 Return on Average Assets 3.40% 14.05% 16.91% 14.70% 5.65% 2020 2021 2022 2023 1Q24 Return on Average Tangible Common Equity 1 Pre-tax, pre-provision net revenue is a non-GAAP metric & excludes provision for loan losses and income tax expense 1

8 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Building Book Value $21.96 $25.55 $30.51 $33.39 $33.57 2020 2021 2022 2023 1Q24 Consistently building book value Fully Diluted Tangible Book Value

9 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 73.9% 53.9% 45.4% 50.8% 60.3% 2.03% 1.75% 1.71% 1.55% 1.66% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% 2.20% 2.40% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 2020 2021 2022 2023 1Q24 Efficiency Ratio Non-interest Expense / Average Assets 1 A non-GAAP metric 1 Efficiency Trends

BWFG | LISTED | NASDAQ Deposits & Liquidity

11 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Deposit Balances 1 1 Core Deposits include Commercial and Consumer checking, savings and money market accounts, and Retail CDs under $250k 2 Wholesale Funding ratio defined as brokered deposits and FHLB borrowings as a percentage of total assets Dollars in millions 19.8% 16.4% 34.4% 32.4% 29.1% Wholesale Funding ratio2 FHLB Borrowings $175 $50 $90 $90 $90 Since 4Q23: $120 million decrease in brokered deposits; $36 million increase in core deposits 15.0% 16.7% 37.0% 34.8% 31.1% 6.1% 2.6% 2.8% 5.5% 6.4% 78.9% 80.6% 60.3% 59.8% 62.5% $1,827 $2,124 $2,801 $2,737 $2,674 4Q20 4Q21 4Q22 4Q23 1Q24 Core Deposits Retail CDs >$250k Brokered Deposits

12 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 2.77% 3.17% 3.78% 2.98% 2.71% 4.48% 4.42% 5.10% 6.10% 6.37% 1.07% 0.54% 0.87% 3.12% 3.75% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 2020 2021 2022 2023 1Q24 Net Interest Margin Loan Yield Cost of Deposits • NIM continues to decline with inverted yield curve • Assuming no further Fed action, NIM anticipated to trough in 2Q at approximately 255 to 265 basis points Net Interest Margin 1 Includes origination fee amortization 1 3.70% 3.24% 3.06% 2.85% 2.81% 2.71% 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Quarterly NIM

13 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Available Liquidity $1,167 $241 $110 Liquidity Uninsured Deposits 1Q24 Liquidity Coverage = 2.3X $1,518 $655 Borrowing Capacity1 Unencumbered Cash Unencumbered Securities Available Liquidity Covers Uninsured Deposits 2.3X 1 Bank lines, including FHLB & FRB 71% 71% 71% 71% 2.2X 2.4X 2.4X 2.3X 1.2X 1.4X 1.6X 1.8X 2.0X 2.2X 2.4X 2.6X 2.8X 3.0X 3.2X 0% 10% 20% 30% 40% 50% 60% 70% 80% 2Q23 3Q23 4Q23 1Q24 Insured Deposits Liquidity Coverage • $2,018 million total insured deposits includes: ‒ $1,908 million FDIC-insured deposits ‒ $111 million deposits secured by FHLB LOCs (municipal deposits) • 11% liquidity on balance sheet (Cash & Securities) • Stable insured deposit base:

14 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Consumer 43.0% Finance & Insurance 18.2% Real Estate and Rental/Leasing 13.7% Professional, Sci & Tech Services 5.2% Health Care & Social Assistance 4.8% Public Administration 4.6% All Other 10.4% Deposit Composition • No digital currency deposits • No single depositor greater than 4% of total deposits • Average account size of $81 thousand1 ‒ Consumer average $52 thousand ‒ Business average $141 thousand • Long-term mix shift into Business deposits: Deposits by Industry 1 Excluding Brokered deposits 1 39% 27% 61% 73% Dec-20 Mar-24 Core Deposit Mix excluding Retail CDs Consumer Business

BWFG | LISTED | NASDAQ Loans

16 BWFG LISTED NASDAQ BWFG LISTED NASDAQ $981 $1,046 $1,224 $1,228 $1,231 $167 $310 $697 $720 $696 $277 $351 $522 $501 $509 $87 $98 $155 $183 $152 $114 $89 $77 $87 $91 $1,626 $1,895 $2,675 $2,719 $2,680 4Q20 4Q21 4Q22 4Q23 1Q24 CRE Investor CRE Owner Occupied C&I Construction Residential / Other Loan Balance Trends Dollars in millions Declining CRE Concentration Ratio reflective of favorable improvement in mix 494% 454% 425% 396% 386% CRE Concentration Ratio

17 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 5.21% Pre 2021 5.59% 2021 6.36% 2022 7.74% 2023 8.65% 2024 Loan Yields Steadily Increasing 1 Weighted average yield based on active loans as of each date, an “exit" rate 2 Weighted average yield based on active loans as of 3-31-2024, an “exit" rate 1 Dollars in millions Loan portfolio yields increased 185 bps since 2020 70% of balances are 2021-24 vintages Yields by Vintage2 Loan Maturities & Contractual Repricing $1,626 $1,895 $2,675 $2,719 $2,680 4.18% 4.30% 5.56% 5.99% 6.03% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% (200) 300 800 1,300 1,800 2,300 2,800 3,300 3,800 4Q20 4Q21 4Q22 4Q23 1Q24 Loan Balance Portfolio Loan Yield Year Maturity Contract Reprice Total % Total Loans 2024 $199 $37 $236 9% 2025 $618 $46 $664 25% 2026 $223 $48 $271 10% 2027+ $807 $85 $892 33% Total $1,846 $216 $2,062 Excluding floating rate loans

18 BWFG LISTED NASDAQ BWFG LISTED NASDAQ • No single relationship represents more than ~4% of total loans, as of March 31, 2024 • Favorable trend in Investor CRE: Total Loan Portfolio = $2,680 million Loan Portfolio Composition 60.4% 55.2% 45.8% 45.2% 45.9% 27.3% 34.9% 45.5% 44.9% 45.0% 4Q20 4Q21 4Q22 4Q23 1Q24 CRE Investor CRE O/O + C&I Residential 1.7% C&I 19.0% CRE Owner Occupied 26.0% CRE Investor 45.9% Commercial Const. 5.7% Other 1.7%

19 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Skilled Nursing Facilities 75% Assisted Living 14% Recovery 5% Other 6% Combined Healthcare Exposure (CRE and C&I) Healthcare Portfolio Composition CRE Skilled Nursing Facility By State $786 million combined Healthcare portfolio • Consists primarily of skilled nursing facilities located across the US • Healthcare lending team has more than 15 years of industry experience • High touch service model attracts desirable ultra-high net worth Healthcare borrowers • 100% of Skilled Nursing Lending has recourse • Focused on originating Healthcare loans in the most desirable states with: – Higher average occupancy – Low denial of payment rates for Medicaid – Strong senior demographic trends – Certificate of need programs 1 Includes Physicians 1 FL 48% OH 13% NY 13% PA 4% AL 4% NJ 4% IA 2% Other 12%

20 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Retail 20.6% Office 9.8% Residential Care 31.8% MultiFamily 13.7% Industrial Warehouse 7.9% Mixed Use 5.4% Medical Office 4.2% Other 5.0% Special Use 1.6% Total CRE Portfolio = $1,928 million 1 Includes Owner Occupied CRE, does not include Construction 2 LTVs based on original LTV values, at origination 3 Loans subject to repricing generally have a floor of not less than the original rate CRE Loan Portfolio • 64% Owner Occupied • Portfolio weighted average LTV2 of 64.0% • ~67% of all CRE loan balances have recourse Dollars in millions 1 Property Type Investor Owner Occupied Total Residential Care $31 $371 $402 Retail $123 $6 $129 Office $73 $10 $83 Multifamily $50 $0 $50 All Other $121 $18 $139 Total $398 $405 $803 By Property Type Loans Maturing or Repricing in 2024 – 2025 3 Excluding floating rate loans

21 BWFG LISTED NASDAQ BWFG LISTED NASDAQ FL $281.8 NY $104.3 OH $80.0 PA $23.6 AL $23.5 NJ $22.3 All Other $78.3 CRE: Residential Care 1 1 Includes Owner Occupied CRE 2 LTVs based on original LTV values, at origination Geography $614 million Residential Care exposure 23% of total loan portfolio • 100% performing loans • $9.4 million average size; 67% weighted average LTV2 • $402 million (~66%) maturing in 2024-2025 • Typical loan structure is 3 year bridge to HUD exit • 100% loans have recourse; HNW guarantors • 95% owner occupied ($582 million) Type Skilled Nursing $491.7 Assisted Living $100.2 Recovery $21.8 Year Loan Count Balance Wtd Avg LTV2 2024 8 $70 69% 2025 32 $332 66% Total 40 $402 67%

22 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Retail $222.2 Grocery $100.7 Restaurant $35.5 Gas/Auto Service $24.9 Pharmacy $13.6 CRE: Retail 1 1 Includes Owner Occupied CRE 2 LTVs based on original LTV values, at origination Type Geography CT $130.9 NY $93.8 PA $34.8 TX $22.6NJ $19.6 FL $17.1 MA $16.9 NC $11.9 All Other $49.1 $397 million Retail exposure 15% of total loan portfolio • 96% loans are pass-rated; 99.94% current • $3.2 million average size; 64% weighted average LTV2 • $129 million (~33%) repricing or maturing in 2024-2025 Year Loan Count Balance Wtd Avg LTV2 2024 16 $44 66% 2025 31 $84 63% Total 47 $129 64%

23 BWFG LISTED NASDAQ BWFG LISTED NASDAQ $190 million Office exposure 7% of total loan portfolio • No New York City exposure • 98% loans are pass-rated • $4.0 million average size; 64% weighted average LTV2 • $83 million (~44%) repricing or maturing in 2024- 2025 • 67% located in Bankwell’s primary market • Out of primary market loans are generally either GSA-leased, credit tenants, or owner-occupied Recourse 65% Non-recourse 35% CRE: Office 1 1 Includes Owner Occupied CRE 2 LTVs based on original LTV values, at origination Geography Recourse Owner Occupied 12% GSA 8% Credit Tenant 3% CT - Fairfield County $49.5 CT - All Other $17.0 NY - Westchester County $22.8 NJ $38.2 TX $28.8 MS $17.9 GA $12.3 FL $2.3 CA $0.9 Year Loan Count Balance Wtd Avg LTV2 2024 8 $52 67% 2025 7 $31 65% Total 15 $83 67%

24 BWFG LISTED NASDAQ BWFG LISTED NASDAQ CRE: Multifamily CT - Fairfield County $60.1 CT - All Other $114.5 NY - NYC $52.2NY - Westchester County $8.2 NY - Rockland County $22.9 NJ $7.2 Brooklyn $41.0 Manhattan $6.3 Queens $4.9 Geography$265 million Multifamily exposure 10% of total loan portfolio • 100% loans are pass-rated and current • $3.6 million average size; 61% weighted average LTV2 • $50 million (~19%) repricing or maturing in 2024-2025 • $52 million NYC Multifamily exposure 20% of total Multifamily and 2% of total loan portfolio ‒ 79% of New York City exposure in Brooklyn ‒ 100% loans are pass-rated and current ‒ $4.7 million average size; 63% weighted average LTV2 ‒ $8 million repricing 2025 at a blended rate of 6.83% ‒ $16 million has either rent control or rent stabilized units (0.6% of total loan portfolio); $9 million guaranteed by sponsor with $1+ billion net worth and $0.5+ billion liquidity 1 1 Includes Owner Occupied CRE, does not include Construction 2 LTVs based on original LTV values, at origination Year Loan Count Balance Wtd Avg LTV2 2024 2 $0.2 59% 2025 15 $50 68% Total 17 $50 68%

25 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Finance 14% Insurance (Primarily Brokers) 20% Health Care & Social Assistance 39% Real Estate and Rental/Leasing 9% Admin & Support, Waste Mgmt, Remediation Svcs 4% Retail Trade 3% Construction 3% Manufacturing 2% Other 6% C&I Loan Portfolio Loans by Industry Type Total C&I Portfolio = $509 million 1 Does not Include Owner Occupied CRE 1 • 87% of C&I portfolio has recourse • 94% of Healthcare loans have recourse - Primarily consists of working capital lines secured by government accounts receivable • Insurance lending primarily to brokers of home and auto insurance

26 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Commercial Construction Portfolio • Commercial construction loans comprise ~6% of total loan portfolio ($152 million) • $88 million of unfunded commitments, committed construction draws are subject to various terms and conditions, including completion of work verified by third party professional inspection Dollars in millions By Property Type # Loans $ Committed % Unfunded $ Unfunded 4Q23 Balance 31 $278 35% $97 Closures in 1Q24 (7) ($40) 4Q23 Loans @ 1Q24 24 $238 37% $88 New 1Q24 Loans 0 $0 1Q24 Balance 24 $238 37% $88 Multifamily 41% Mixed Use 34% Land 22% Self Storage 0% Retail 3%

BWFG | LISTED | NASDAQ Credit Quality & Capital

28 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Credit Quality 1Q23 2Q23 3Q23 4Q23 1Q24 Risk Rating Balance % Balance % Balance % Balance % Balance % 1-5 “Pass” $2,714 98.4% $2,710 98.4% $2,694 97.7% $2,570 94.5% $2,527 94.3% 6 “Special Mention” $1 0.0% $28 0.1% $22 1.0% $67 2.5% $72 2.7% 7 “Substandard” $40 1.6% $36 1.4% $54 1.3% $76 2.8% $68 2.5% 8 “Doubtful” $2 0.0% $0 0.1% $0 0.0% $6 0.2% $13 0.5% Total Gross Loans $2,757 $2,774 $2,770 $2,719 $2,680 Non-Performing Loans $14.3 $15.5 $28.0 $49.2 $46.5 % of Total Gross Loans 0.52% 0.56% 1.01% 1.81% 1.74% Dollars in millions 1Q24 Criticized & Classified Loans by Segment Risk Rating Performing CRE C&I Construction 1-4 Family Residential Total 6 Yes $64 $8 $0 $0 $72 7 Yes $27 $4 $0 $2 $34 7 No $8 $15 $9 $1 $34 8 No $11 $2 $0 $0 $13 Total $110 $29 $9 $4 $152 • $106 million of criticized and classified loans are performing; 98% current • Of those performing loans, $95 million are to 8 Residential Care borrowers (CRE loans & related C&I Lines) who average: ‒ $617 million net worth ‒ $65 million liquidity ‒ $17 million personal cash flow

29 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 1Q24 Non-Performing Loans Segment Balance % Total Gross Loans Comments Loan 1 CRE $10.4 0.39% • Retail loan modified during COVID • Borrower paying according to terms of restructure • $4.0 million charged off ($3.8 million in 2Q21 and $0.2 million in 4Q23) Loan 2 Construction $9.4 0.35% • Litigation in process, full payment expected • 46% LTV & full recourse • HNW guarantors Loan 3 C&I $8.7 0.32% • $0.4 million specific reserve Loan 4 CRE $4.1 0.15% • Retail loan in suburban CT; Large tenant bankruptcy • Borrower paying according to terms of restructure • $0.6 million charged off in 4Q23 Loan 5 CRE $3.1 0.11% • Office loan in suburban CT • $2.8 million charged off in 1Q24 Subtotal $35.7 1.33% SBA Loans $9.5 0.36% • $8.7 million (33 basis points) are SBA-guaranteed balances • $0.7 million charged off in 1Q24 All Other $1.3 0.05% • 4 loans; 97% balance residential mortgages Total $46.5 1.74% Dollars in millions • All non-performing loans individually evaluated for impairment • Balances charged off or specifically reserved, as appropriate

30 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Credit Quality Dollars in thousands $27,998 $30,694 $29,284 $27,946 $27,991 1.01% 1.11% 1.06% 1.03% 1.04% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 1Q23 2Q23 3Q23 4Q23 1Q24 Allowance for credit losses ACL / Loans Allowance for Credit Losses (“ACL”) • $3.7 million provision expense in 1Q24 attributed to: ‒ $3.7 million net charge offs ‒ $0.9 million macroeconomic factors ‒ ($0.3) million loan volume ‒ ($0.6) million net specific reserve release • 1Q24 charge offs include: ‒ $2.8 million suburban CT office loan ‒ $0.7 million on 2 SBA loans (unguaranteed balances) $0.4 ($0.02) ($0.02) $0.4 $3.7 1Q23 2Q23 3Q23 4Q23 1Q24 Net Charge Offs (Recoveries) Dollars in millions

31 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Fully Diluted Tangible Book Value 1 Misc includes items such as, but not limited to, changes related to stock grants and share count • Repurchased 36,180 shares at an average price of $25.42 in 1Q24 1 1Q24 TBV / Share Walk $33.39 $33.57 $0.48 $0.20 $0.01 $0.04 $0.06 2023 Net Income Dividends AOCI Share Buyback Misc 1Q24

32 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Bank Capital Ratios 9.22% 9.41% 9.60% 9.81% 10.09% 5% 1Q23 2Q23 3Q23 4Q23 1Q24 Tier 1 Leverage Ratio Bankwell Bank Well Capitalized 1 Current period ratios are estimates pending FDIC call report filing 2 Consolidated ratio 10.00% 10.18% 10.65% 11.30% 11.60% Tier 1 8% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% 1Q23 2Q23 3Q23 4Q23 1Q24 Tier 1 / CET 1 Capital Ratio Bankwell Bank Well Capitalized 10.98% 11.24% 11.68% 12.32% 12.63% 10% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% 13.00% 1Q23 2Q23 3Q23 4Q23 1Q24 Total Risk-Based Capital Ratio Bankwell Bank Well Capitalized • Additional 1Q24 ratios: – 8.42% TCE Ratio2 – 43% Construction Concentration Ratio • Repurchased 36,180 shares at an average price of $25.42 in 1Q24 1 CET1 6.5%

BWFG | LISTED | NASDAQ History & Overview

34 BWFG LISTED NASDAQ BWFG LISTED NASDAQ • Connecticut-based $3.2 billion commercial bank • 9 branches in Fairfield & New Haven Counties • $311 million deposits per branch; one of the highest in Fairfield & New Haven Counties1 Bankwell operates in an attractive core market: • 4th most affluent MSA in the Nation in per capita personal income (PCPI)2 • 4 of the top 25 wealthiest towns in the U.S.3 • Headquarters of 9 Fortune 500 companies4 • Home to three of the largest hedge funds in the U.S. • MSA ranked 13th most educated overall, 9th highest percentage of bachelor degree holders5 • Median value of owner-occupied units of $704 thousand6 ̶ In addition, New Haven County median value of owner-occupied units of $237 thousand6 1 Source: S&P Global Market Intelligence’s Branch Competitors & Pricing Report as of 6/30/23, excluding global money center banks (tickers BAC, WFC, JPM, TD & C) 2 Source: Bureau of Economic Analysis’ Metropolitan Area Table, contained within the Personal Income by County & Metropolitan Area, 2022 news release 11/16/23 3 Source: Bloomberg: 2020 Richest Places 4 Source: Fortune.com: 2023 Fortune 500 5 Source: WalletHub: Most & Least Educated Cities in America, 7/17/23 6 Source: US Census Bureau QuickFacts (as of July 1, 2022 data) Profile

35 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Financial Snapshot 2020 2021 2022 2023 1Q24 Total assets $2,253,747 $2,456,264 $3,252,449 $3,215,482 $3,155,274 Net loans $1,601,672 $1,875,167 $2,646,384 $2,685,301 $2,646,686 Loan-to-deposit ratio 87.9% 88.8% 95.2% 98.9% 99.7% Return on average assets 0.28% 1.17% 1.44% 1.13% 0.47% Efficiency ratio1 73.9% 53.9% 45.4% 50.8% 60.3% Non-interest expense / average assets 2.03% 1.75% 1.71% 1.55% 1.66% Net interest margin 2.77% 3.17% 3.78% 2.98% 2.71% Total capital to risk weighted assets 12.28% 12.00% 11.07% 12.32% 12.63% Tangible common equity ratio1 7.73% 8.13% 7.26% 8.19% 8.42% Return on average tangible common equity 3.40% 14.05% 16.91% 14.70% 5.65% Fully diluted tangible book value per share1 $21.96 $25.55 $30.51 $33.39 $33.57 Net interest income $54,835 $67,886 $94,743 $94,468 $21,147 Pre-tax, pre-provision net revenue1 $14,907 $33,803 $53,420 $48,909 $8,765 Net income $5,904 $26,586 $37,429 $36,664 $3,763 EPS (fully diluted) $0.75 $3.36 $4.79 $4.67 $0.48 1 A non-GAAP metric Dollars in thousands, except per share data

36 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Name Years Experience Selected Professional Biography Christopher Gruseke Chief Executive Officer Director (since 2015) 30+ Mr. Gruseke was a founding investor and director of Bankwell Financial Group’s predecessors, BNC Financial Group, Inc., and The Bank of New Canaan. He brings more than 25 years of capital markets, operations, sales and finance experience to his role at the Company. Most recently, he was a member of the Executive Committee at CRT Capital, a Stamford, Connecticut-based broker/dealer. He also served as Co-Chief Operating Officer and a member of the Board of Greenwich Capital Markets. Mr. Gruseke earned a B.A. from Williams College and an M.S. from the Stern School of Business at New York University. Steven H. Brunner Chief Risk & Operations Officer (since 2024) 20+ Mr. Brunner has over 20 years of experience in Commercial Banking. He previously served as Global Head of Financial Crimes at Wex, Inc. a global financial technology payments company. His prior experience also includes nine years at Sterling National Bank, holding multiple compliance and risk management positions, serving as BSA/AML/OFAC Compliance & Security Officer from 2017 until the bank’s merger with Webster Financial Bank. During his 9 years at Sterling National Bank, the bank grew its assets from $3 billion to over $30 billion. Prior thereto, Mr. Brunner held similar risk management roles at Ally Financial, Inc. and AXA Equitable. Mr. Brunner earned his B.S. in Economic Crime Investigation, with a concentration in Computer Security from Utica University. Christine A. Chivily Chief Credit Officer (since 2013) 40+ Ms. Chivily has over 40 years of experience in banking and real estate finance. She previously served in a risk management role for the CRE and C&I loan portfolios at People's United Bank. Her prior experience also includes five years as Director of Freddie Mac’s New England region for multifamily properties and 11 years as Senior Credit Officer at RBS Greenwich Capital. She also has over 10 years of combined experience in lending, loan administration and workouts at other various banking institutions. Ms. Chivily received her B.A. from Mt. Holyoke College. Ryan J. Hildebrand Chief Innovation Officer (since 2023) 20+ Mr. Hildebrand has over 20 years of experience in fintech and banking. He led business units at Cross River Bank and LSBX, driving increased deposits and fee income. He founded Seed, a pioneering challenger bank acquired by Cross River. Previously, he served as Head of Finance and Strategy at Simple, the first consumer challenger bank, and held positions at Umpqua Bank and PricewaterhouseCoopers. Mr. Hildebrand received his B.A. in Accounting from Oregon State University. Matthew McNeill Chief Banking Officer (since 2020) 20+ Mr. McNeill has more than 20 years of experience in Commercial Banking. He most recently served as Head of Commercial Lending at Metropolitan Commercial Bank. During his 8 years at Metropolitan Commercial Bank the bank grew its lending assets from $400 million to over $3 billion. Mr. McNeill has additionally held lending roles at HSBC Bank US and Banco Santander. Mr. McNeill has also served as Managing Partner at American Real Estate Lending; a Commercial Real Estate finance company. Courtney E. Sacchetti Chief Financial Officer (since 2023) 25+ Ms. Sacchetti has more than 25 years experience in Financial Services. She most recently served as Director of Financial Planning & Analysis for the Company for 6 years. She began her career at GE Capital in the Financial Management Program (FMP) and held various finance and regulatory positions of increasing responsibility over her 18-year career at GE Capital. Ms. Sacchetti earned a B.A. and an M.B.A. from Union College. Experienced Leadership Team

BWFG | LISTED | NASDAQ Thank You & Questions