Bankwell Financial Group (NASDAQ:BWFG – Get Free Report) issued its quarterly earnings results on Thursday. The bank reported $1.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.44 by $0.14, Zacks reports. Bankwell Financial Group had a return on equity of 13.94% and a net margin of 19.80%. The firm had revenue of $35.33 million for the quarter, compared to analyst estimates of $33.33 million.
Here are the key takeaways from Bankwell Financial Group’s conference call:
- Record third-quarter results: GAAP net income reached $12.7 million, or $1.58 per share, while operating net income excluding core-conversion costs was $15 million, or $1.86 per share.
- Margin and outlook improved: Net interest margin expanded 13 basis points to 3.71%, prompting the company to raise full-year net interest income guidance to $119 million-$121 million and non-interest income guidance to $14 million-$15 million.
- Credit performance strengthened: The sale of the largest legacy non-performing asset generated a $2.5 million recovery, contributing to $1.4 million of net recoveries; non-performing assets declined to 20 basis points of total assets.
- The SBA platform delivered record quarterly gain-on-sale income of $2.8 million, with management citing a robust pipeline and continued growth potential into 2027.
- Core conversion will weigh on expenses: Bankwell incurred $3 million of conversion-related costs this quarter and expects an additional $400,000-$500,000 per quarter over the next four quarters, with the conversion targeted for completion in the second half of 2027.
Bankwell Financial Group Stock Up 4.1%
Shares of NASDAQ:BWFG opened at $69.65 on Friday. Bankwell Financial Group has a 52-week low of $42.50 and a 52-week high of $70.34. The stock has a market cap of $555.25 million, a P/E ratio of 13.02 and a beta of 0.58. The business has a fifty day moving average of $66.29 and a two-hundred day moving average of $56.73. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.31.
Bankwell Financial Group Announces Dividend
The business also recently announced a quarterly dividend, which will be paid on Friday, November 20th. Shareholders of record on Monday, November 9th will be issued a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 1.1%. The ex-dividend date is Monday, November 9th. Bankwell Financial Group’s dividend payout ratio is presently 14.95%.
Analyst Ratings Changes
Several brokerages have issued reports on BWFG. Hovde Group lifted their target price on shares of Bankwell Financial Group from $51.00 to $63.00 and gave the stock a “market perform” rating in a research note on Monday, July 27th. Keefe, Bruyette & Woods raised their price target on shares of Bankwell Financial Group from $62.00 to $72.00 and gave the stock an “outperform” rating in a research note on Tuesday, July 28th. Weiss Ratings lowered shares of Bankwell Financial Group from a “buy (a)” rating to a “buy (a-)” rating in a research report on Monday. Finally, Zacks Research lowered shares of Bankwell Financial Group from a “strong-buy” rating to a “hold” rating in a research report on Friday, September 25th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $67.50.
Check Out Our Latest Stock Report on Bankwell Financial Group
Insider Activity
In other news, Director Lawrence B. Seidman bought 10,000 shares of Bankwell Financial Group stock in a transaction on Friday, August 7th. The shares were bought at an average cost of $66.63 per share, with a total value of $666,300.00. Following the completion of the purchase, the director directly owned 222,690 shares of the company’s stock, valued at approximately $14,837,834.70. This trade represents a 4.70% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Eric J. Dale bought 530 shares of the firm’s stock in a transaction on Tuesday, September 8th. The stock was purchased at an average price of $67.11 per share, for a total transaction of $35,568.30. Following the completion of the acquisition, the director directly owned 43,026 shares in the company, valued at $2,887,474.86. The trade was a 1.25% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders have bought 19,040 shares of company stock worth $1,269,057. Corporate insiders own 20.98% of the company’s stock.
Key Stories Impacting Bankwell Financial Group
Here are the key news stories impacting Bankwell Financial Group this week:
- Positive Sentiment: Q3 earnings exceeded expectations. Bankwell reported earnings of $1.58 per share, up from $1.27 a year earlier and ahead of consensus estimates of $1.41–$1.44. Revenue reached $35.33 million, above the $33.33 million consensus forecast. Bankwell Q3 earnings beat
- Positive Sentiment: Record profitability reinforces the bullish outlook. Bankwell posted $12.7 million in GAAP net income for the third quarter, with a 19.80% net margin and 13.94% return on equity. The results indicate strong operating performance and earnings momentum. Bankwell Q3 GAAP net income
- Positive Sentiment: The bank maintained its shareholder return program. Bankwell declared a quarterly dividend of $0.20 per share, or $0.80 annualized, representing an indicated yield of approximately 1.1%. Shareholders of record on November 9 will receive payment on November 20. Bankwell dividend announcement
- Neutral Sentiment: Management provided forward-looking targets. Bankwell forecast net interest income of $119 million to $121 million and expects to complete its core-system conversion in the second half of 2027. The income outlook is supportive, while the lengthy technology implementation timeline creates execution considerations for investors. Bankwell outlook and core conversion
Bankwell Financial Group Company Profile
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.
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