Bankwell (BWFG) Q1 2026 Earnings Transcript

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Thu, April 23, 2026 astatine 9:42 AM CDT 15 min read

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Thursday, April 23, 2026 astatine 9 a.m. ET

• Chief Executive Officer — Christopher R. Gruseke

• Chief Financial Officer — Courtney E. Sacchetti

• President & Chief Banking Officer — Matthew J. McNeill

Christopher R. Gruseke: Thanks, Courtney. Welcome, and convey you to everyone for joining Bankwell Financial Group, Inc.'s quarterly net call. This morning, I americium joined by Courtney E. Sacchetti, our Chief Financial Officer, and Matthew J. McNeill, our President and Chief Banking Officer. We admit your involvement successful our performance, and I americium excited by this accidental to sermon our results with you. We person delivered a coagulated commencement to 2026 with beardown earnings, continued equilibrium expanse improvement, and continued advancement connected our strategical priorities. For the archetypal quarter, we reported GAAP nett income of $11.3 million, oregon $1.41 per share.

These results were supported by coagulated indebtedness production, beardown interest income from our SBA platform, little backing costs, meaningful halfway deposit growth, and ongoing equilibrium expanse optimization, including reduced reliance connected wholesale backing and continued advancement connected gathering a much involvement complaint neutral equilibrium sheet. Loan maturation remained affirmative during the 4th with $190 cardinal of originations, including $34 cardinal of SBA production, resulting successful nett indebtedness maturation of $27 million. On an annualized basis, this level of maturation is accordant with our antecedently communicated guidance of 4% to 5% for the afloat year, and our pipeline remains strong. Importantly, this maturation is supported by beardown halfway deposit inflows.

Core deposits accrued by $113 cardinal sequentially, with $39 cardinal coming from low-cost deposits. Included successful that $39 cardinal is $24 cardinal of maturation successful analyzed checking balances, for an 8% summation connected the quarter. In summation to backing our indebtedness growth, we reduced brokered deposit balances and Federal Home Loan Bank borrowings by a combined $95 million, further improving our backing mix. Since our highest astatine the extremity of 2022, we person successfully reduced our brokered deposits by $513 million, a 50% decline. The nett involvement borderline was 328 ground points, reflecting humble unit from plus repricing, arsenic floating-rate loans reset lower, and an unfavorable day-count interaction comparative to the anterior quarter.

These factors were partially offset by continued betterment successful deposit costs, which declined 5 ground points sequentially to 310 ground points. Noninterest income remained a meaningful contributor to results, totaling $3.3 million, which includes $2.4 cardinal of SBA gain-on-sale income. Our SBA part continues to beryllium an important portion of our diversified gross strategy and a meaningful root of recurring interest income. Credit prime remains steadfast with expectations of further improvement. While nonperforming assets accrued modestly to 56 ground points of full assets, we person visibility into the solution of respective credits implicit the coming quarters. Overall plus prime metrics stay good wrong our interior expectations, and reserve sum levels stay appropriate.