BWFG | LISTED | NASDAQ

4Q21 Investor Presentation

January 26th, 2022

BWFG

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Safe Harbor

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 securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and its subsidiaries are engaged. The COVID-19 pandemic continues to affect Bankwell Financial Group, its customers, counterparties, employees, and third party service providers, and the ultimate extent of the impacts on its business, financial position, results of operations, liquidity, and prospects is unknown.

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Table of Contents

BWFG

BWFG LISTED

NASDAQ

  • 4Q21 & 2021 Performance
  • Trends
  • ALLL & Non-Performing Loans
  • Loan Portfolio
  • Capital
  • Bankwell History & Overview

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4Q21 & 2021 Performance

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Summary

  • Record net income of $7.81 million, or $0.99 earnings per share for the quarter, and $26.59 million, or $3.36 earnings per share for the full year
  • Return on Average Assets and Return on Average Equity were 1.32% and 15.44%, respectively for the quarter, and 1.17% and 13.86% for the full year
  • 4Q21 results includes:
    • ~$0.4 million release of COVID-19 reserves in the Provision for Loan Losses, given improving economic trends
    • ~$0.3 million negative mark on held-for-sale property for former Bankwell office building
    • ~$0.2 million loss resulting from sale of former HQ building
  • Pre-tax,pre-provision net revenue ("PPNR")1 of $10.07 million, or 1.70% PPNR ROAA for the quarter, and $33.80 million, or 1.49% PPNR ROAA for the full year
  • 2021 loan growth of $304 million, or 19%, excluding PPP loan balances
    • Quarterly loan growth of $72 million, or ~4%
  • Noninterest bearing deposits percentage increased to 18.8% from 14.8% versus December 31, 2020
    • During 4Q21, noninterest bearing deposits grew $60 million, or ~18%
  • 6 basis point linked quarter deposit cost reduction to 44 basis points
  • 4Q21 Net Interest Margin ("NIM") of 3.43%, 2021 NIM of 3.17%
  • Repurchased 59,338 shares at an average price of $31.29 per share during the quarter
  • Issued $35 million of subordinated notes at 3.25%, using $15.5 million to repay previously issued subordinated notes
  • Raising 1Q22 dividend by 11% from the prior quarter, to $0.20 per share

1 Pre-tax,pre-provision net revenue per share is a non-GAAP metric & excludes provision for loan losses and income tax expense

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Bankwell Financial Group Inc. published this content on 26 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 January 2022 21:48:22 UTC.