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Bankwell Financial Group Reports Record Net Income for the Second Quarter; Gross Loans Surpass $2 Billion; and Declares Third Quarter Dividend

Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported record GAAP net income of $12.0 million, or $1.55 per share, for the second quarter of 2022, versus $6.2 million, or $0.79 per share, for the same period in 2021. During the quarter ended June 30, 2022 the Company experienced several non-recurring items that positively impacted reported earnings. Adjusting for these items, operating earnings per share totaled $1.15 for the second quarter of 2022. Please reference the table below for a reconciliation of reported earnings per share to operating earnings per share.

 

Earnings Per Common Share

2Q'22 QTD Reported EPS

$ 1.55

 

Elevated Loan Prepayments(1)

(0.15

)

Release of Specific Reserves(2)

(0.16

)

Historical Loss Update to Peer Group(3)

(0.09

)

2Q'22 QTD Operating EPS(4)

$ 1.15

 

(1) 2Q'22 loan prepayments exceeded historical quarterly averages and are not reflective of run rate.

(2) Specific reserve reduction as impaired loans exhibited improved performance or paid off.

(3) Bankwell is not yet subject to CECL; reduction in general reserves due to annual update to historical loss data in our peer group-based, “incurred loss” model.

(4) Non-gaap measure.

The Company's Board of Directors declared a $0.20 per share cash dividend, payable August 25, 2022 to shareholders of record on August 15, 2022.

We recommend reading this earnings release in conjunction with the Second Quarter 2022 Investor Presentation, located at http://investor.mybankwell.com/Presentations and included as an exhibit to our July 27, 2022 Current Report on Form 8-K.

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

"I offer my thanks and congratulations to our entire team for their commitment to excellence. Even after discounting favorable one-time items, our Company has delivered outstanding results, including an operating ROAA of 1.45%, an ROAE of 16.4%, and an efficiency ratio of 46.6%. Several years ago we put forth a strategic plan to diversify and transform our business model. With careful planning and execution, we are now reaping the benefits of investing in that plan.

"As we look ahead, despite the backdrop of macroeconomic uncertainty, our third quarter loan pipeline remains at record levels. It is likely that the economy will experience further volatility in the coming quarters. Nevertheless, we are confident that the business we have built will enable us to continue to deliver above-peer group performance."

Second Quarter 2022 Highlights (performance metrics are impacted by the above mentioned one-time items - please refer to the table following the below highlights for adjusted performance metrics):

  • Return on average assets was 1.96% and return on average equity was 22.09% for the quarter ended June 30, 2022.
  • The net interest margin was 4.01% for the quarter ended June 30, 2022.
  • The efficiency ratio was 43.8% for the quarter ended June 30, 2022.
  • Total gross loans were $2.1 billion, growing $161.7 million, or 8.5%, compared to December 31, 2021.
  • Average yield on 2022 funded loans was 4.88%.
  • Gains from loan sales totaled $0.6 million for the quarter ended June 30, 2022.
  • Total deposits decreased by 4.3% to $2.0 billion compared to $2.1 billion at December 31, 2021 as a result of seasonal fluctuations in several municipal and commercial deposit relationships.
  • Investment securities totaled $113.0 million and represent 4.6% of total assets.
  • Fully diluted tangible book value per share rose to $28.75 compared to $25.55 at December 31, 2021.
  • Wilton branch closure announced July 8, 2022 (effective October 7, 2022).
  • Shares issued and outstanding were 7,752,389 for the quarter ended June 30, 2022.

 

 

Quarter Ended June 30, 2022

 

Six Months Ended June 30, 2022

Key metrics

 

Reported

 

Operating(1)

 

Variance

 

Reported

 

Operating(1)

 

Variance

Net interest margin

 

4.01 %

 

3.75 %

 

0.26 %

 

3.65 %

 

3.53 %

 

0.12 %

Efficiency ratio

 

43.8 %

 

46.6 %

 

(2.8) %

 

45.9 %

 

47.5 %

 

(1.6) %

Return on average assets

 

1.96 %

 

1.45 %

 

0.51 %

 

1.65 %

 

1.40 %

 

0.25 %

Return on average stockholders' equity

 

22.09 %

 

16.39 %

 

5.70 %

 

19.16 %

 

16.22 %

 

2.94 %

(1) Operating metrics are non-gaap measures and have been adjusted for elevated loan prepayments, release of specific reserves, and the historical loss update to the Company's peer group as noted in the above EPS table.

Earnings and Performance

Revenues (net interest income plus noninterest income) for the quarter ended June 30, 2022 were $25.0 million, versus $18.0 million for the quarter ended June 30, 2021. Revenues for the six months ended June 30, 2022 were $45.4 million, versus $34.6 million for the six months ended June 30, 2021. The increase in revenues was primarily attributable to an increase in interest and fees on loans due to loan growth and higher overall loan yields and from lower interest expense on deposits. The increase in loan yields was aided by elevated loan prepayment fees, which totaled $1.8 million for the quarter ended June 30, 2022, compared to $0.8 million for the quarter ended June 30, 2021. The increase in revenues was partially offset by a decrease in noninterest income driven by the absence of rental income recognized during the quarter and six months ended June 30, 2021, as a result of the disposition of the Company's former headquarters building. In addition, the increase in revenues for the six months ended June 30, 2022 was also partially offset by a one-time federal payroll tax credit for COVID-19 of $0.9 million recognized in the quarter ended March 31, 2021.

Net income for the quarter ended June 30, 2022 was $12.0 million, versus $6.2 million for the quarter ended June 30, 2021. Net income for the six months ended June 30, 2022 was $20.2 million, versus $11.9 million for the six months ended June 30, 2021. The increase in net income was primarily impacted by the aforementioned increases in revenues and by a decrease in the provision for loan losses primarily driven by the release of specific reserves on impaired loans that showed improved performance or paid off.

Basic and diluted earnings per share were $1.56 and $1.55, respectively, for the quarter ended June 30, 2022 compared to basic and diluted earnings per share of $0.79 each for the quarter ended June 30, 2021. Basic and diluted earnings per share were $2.61 and $2.58, respectively, for the six months ended June 30, 2022 compared to basic and diluted earnings per share of $1.51 and $1.50, respectively, for the six months ended June 30, 2021.

The net interest margin (fully taxable equivalent basis) for the quarters ended June 30, 2022 and June 30, 2021 was 4.01% and 3.12%, respectively. The net interest margin (fully taxable equivalent basis) for the six months ended June 30, 2022 and June 30, 2021 was 3.65% and 2.93%, respectively. The increase in the net interest margin was due to lower interest expense from a decrease in rates on interest bearing deposits, elevated loan prepayment fees, and an increase in overall loan yields.

Financial Condition

Assets totaled $2.44 billion at June 30, 2022, compared to assets of $2.46 billion at December 31, 2021. The decrease in assets was primarily due to a decrease in deposits while excess liquidity funded additional loan growth. Gross loans totaled $2.1 billion at June 30, 2022, an increase of $161.7 million compared to December 31, 2021. Deposits totaled $2.0 billion at June 30, 2022, compared to deposits of $2.1 billion at December 31, 2021.

Capital

Shareholders’ equity totaled $225.5 million as of June 30, 2022, an increase of $23.5 million compared to December 31, 2021, primarily a result of (i) net income of $20.2 million for the six months ended June 30, 2022 and (ii) an $8.9 million favorable impact to accumulated other comprehensive income driven by fair value marks related to hedge positions involving interest rate swaps, partially offset by fair value marks on the Company's investment portfolio. The Company's interest rate swaps are used to hedge interest rate risk. The increase in Shareholders’ equity was partially offset by dividends paid of $3.1 million and common stock repurchases of $3.8 million.

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 Penko Ivanov, 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, but are not limited to, increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the securities markets, uncertain impacts of, or additional changes in, monetary, fiscal or tax policy to address the impact of COVID-19, which could further exacerbate the effects on the Company’s business and results of operations, 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 book value per share, and return on average tangible common equity 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)

 

June 30,

2022

 

March 31,

2022

 

December 31,

2021

 

June 30,

2021

ASSETS

 

 

 

 

 

 

 

Cash and due from banks

$

149,522

 

$

280,471

 

 

$

291,598

 

 

$

297,851

 

Federal funds sold

 

21,505

 

 

19,022

 

 

 

53,084

 

 

 

4,036

 

Cash and cash equivalents

 

171,027

 

 

299,493

 

 

 

344,682

 

 

 

301,887

 

 

 

 

 

 

 

 

 

Investment securities

 

 

 

 

 

 

 

Marketable equity securities, at fair value

 

2,126

 

 

2,090

 

 

 

2,168

 

 

 

2,192

 

Available for sale investment securities, at fair value

 

94,907

 

 

98,733

 

 

 

90,198

 

 

 

90,983

 

Held to maturity investment securities, at amortized cost

 

15,917

 

 

15,979

 

 

 

16,043

 

 

 

16,166

 

Total investment securities

 

112,950

 

 

116,802

 

 

 

108,409

 

 

 

109,341

 

Loans receivable (net of allowance for loan losses of $15,773, $17,141, $16,902 and $16,672 at June 30, 2022, March 31, 2022, December 31, 2021 and June 30, 2021, respectively)

 

2,036,626

 

 

1,964,567

 

 

 

1,875,167

 

 

 

1,719,274

 

Accrued interest receivable

 

8,047

 

 

7,733

 

 

 

7,512

 

 

 

6,661

 

Federal Home Loan Bank stock, at cost

 

5,064

 

 

2,870

 

 

 

2,814

 

 

 

3,844

 

Premises and equipment, net

 

27,768

 

 

25,661

 

 

 

25,588

 

 

 

33,916

 

Bank-owned life insurance

 

49,699

 

 

49,434

 

 

 

49,174

 

 

 

48,632

 

Goodwill

 

2,589

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

Other intangible assets

 

 

 

 

 

 

 

 

 

58

 

Deferred income taxes, net

 

4,768

 

 

6,879

 

 

 

7,621

 

 

 

8,208

 

Other assets

 

17,014

 

 

20,849

 

 

 

32,708

 

 

 

35,415

 

Total assets

$

2,435,552

 

$

2,496,877

 

 

$

2,456,264

 

 

$

2,269,825

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

Noninterest bearing deposits

$

372,584

 

$

412,985

 

 

$

398,956

 

 

$

328,473

 

Interest bearing deposits

 

1,660,941

 

 

1,753,219

 

 

 

1,725,042

 

 

 

1,610,829

 

Total deposits

 

2,033,525

 

 

2,166,204

 

 

 

2,123,998

 

 

 

1,939,302

 

 

 

 

 

 

 

 

 

Advances from the Federal Home Loan Bank

 

105,000

 

 

50,000

 

 

 

50,000

 

 

 

75,000

 

Subordinated debentures

 

34,500

 

 

34,471

 

 

 

34,441

 

 

 

15,366

 

Accrued expenses and other liabilities

 

37,060

 

 

35,982

 

 

 

45,838

 

 

 

49,362

 

Total liabilities

 

2,210,085

 

 

2,286,657

 

 

 

2,254,277

 

 

 

2,079,030

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

Common stock, no par value

 

115,599

 

 

114,882

 

 

 

118,148

 

 

 

120,451

 

Retained earnings

 

109,523

 

 

99,047

 

 

 

92,400

 

 

 

80,543

 

Accumulated other comprehensive income (loss)

 

345

 

 

(3,709

)

 

 

(8,561

)

 

 

(10,199

)

Total shareholders’ equity

 

225,467

 

 

210,220

 

 

 

201,987

 

 

 

190,795

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

$

2,435,552

 

$

2,496,877

 

 

$

2,456,264

 

 

$

2,269,825

 

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

(Dollars in thousands, except share data)

 

For the Quarter Ended

 

For the Six Months Ended

 

June 30,

2022

 

March 31,

2022

 

December 31,

2021

 

June 30,

2021

 

June 30,

2022

 

June 30,

2021

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

$

25,141

 

 

$

21,428

 

 

$

21,081

 

 

$

19,266

 

 

$

46,569

 

 

$

37,166

 

Interest and dividends on securities

 

774

 

 

 

720

 

 

 

722

 

 

 

736

 

 

 

1,494

 

 

 

1,505

 

Interest on cash and cash equivalents

 

449

 

 

 

154

 

 

 

90

 

 

 

90

 

 

 

603

 

 

 

198

 

Total interest and dividend income

 

26,364

 

 

 

22,302

 

 

 

21,893

 

 

 

20,092

 

 

 

48,666

 

 

 

38,869

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

Interest expense on deposits

 

1,983

 

 

 

2,206

 

 

 

2,198

 

 

 

2,744

 

 

 

4,189

 

 

 

5,858

 

Interest expense on borrowings

 

558

 

 

 

586

 

 

 

767

 

 

 

769

 

 

 

1,144

 

 

 

1,777

 

Total interest expense

 

2,541

 

 

 

2,792

 

 

 

2,965

 

 

 

3,513

 

 

 

5,333

 

 

 

7,635

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

23,823

 

 

 

19,510

 

 

 

18,928

 

 

 

16,579

 

 

 

43,333

 

 

 

31,234

 

(Credit) provision for loan losses

 

(1,445

)

 

 

229

 

 

 

125

 

 

 

(20

)

 

 

(1,216

)

 

 

(316

)

Net interest income after (credit) provision for loan losses

 

25,268

 

 

 

19,281

 

 

 

18,803

 

 

 

16,599

 

 

 

44,549

 

 

 

31,550

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

Gains and fees from sales of loans

 

608

 

 

 

631

 

 

 

441

 

 

 

814

 

 

 

1,239

 

 

 

1,327

 

Bank owned life insurance

 

265

 

 

 

260

 

 

 

270

 

 

 

251

 

 

 

525

 

 

 

482

 

Service charges and fees

 

249

 

 

 

240

 

 

 

257

 

 

 

217

 

 

 

489

 

 

 

416

 

Other

 

30

 

 

 

(173

)

 

 

(143

)

 

 

158

 

 

 

(143

)

 

 

1,170

 

Total noninterest income

 

1,152

 

 

 

958

 

 

 

825

 

 

 

1,440

 

 

 

2,110

 

 

 

3,395

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

5,433

 

 

 

4,940

 

 

 

4,806

 

 

 

3,960

 

 

 

10,373

 

 

 

8,729

 

Occupancy and equipment

 

2,193

 

 

 

2,150

 

 

 

2,411

 

 

 

3,250

 

 

 

4,343

 

 

 

5,656

 

Professional services

 

1,000

 

 

 

981

 

 

 

628

 

 

 

547

 

 

 

1,981

 

 

 

1,134

 

Data processing

 

689

 

 

 

654

 

 

 

432

 

 

 

833

 

 

 

1,343

 

 

 

1,345

 

Director fees

 

339

 

 

 

352

 

 

 

335

 

 

 

327

 

 

 

691

 

 

 

644

 

FDIC insurance

 

262

 

 

 

223

 

 

 

231

 

 

 

300

 

 

 

485

 

 

 

703

 

Marketing

 

107

 

 

 

45

 

 

 

87

 

 

 

140

 

 

 

152

 

 

 

131

 

Other

 

913

 

 

 

580

 

 

 

749

 

 

 

695

 

 

 

1,493

 

 

 

1,348

 

Total noninterest expense

 

10,936

 

 

 

9,925

 

 

 

9,679

 

 

 

10,052

 

 

 

20,861

 

 

 

19,690

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax expense

 

15,484

 

 

 

10,314

 

 

 

9,949

 

 

 

7,987

 

 

 

25,798

 

 

 

15,255

 

Income tax expense

 

3,462

 

 

 

2,102

 

 

 

2,135

 

 

 

1,759

 

 

 

5,564

 

 

 

3,338

 

Net income

$

12,022

 

 

$

8,212

 

 

$

7,814

 

 

$

6,228

 

 

$

20,234

 

 

$

11,917

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Common Share:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

1.56

 

 

$

1.05

 

 

$

1.00

 

 

$

0.79

 

 

$

2.61

 

 

$

1.51

 

Diluted

$

1.55

 

 

$

1.04

 

 

$

0.99

 

 

$

0.79

 

 

$

2.58

 

 

$

1.50

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

7,556,645

 

 

 

7,637,077

 

 

 

7,660,307

 

 

 

7,722,481

 

 

 

7,596,639

 

 

 

7,744,368

 

Diluted

 

7,614,243

 

 

 

7,719,405

 

 

 

7,726,420

 

 

 

7,768,026

 

 

 

7,683,305

 

 

 

7,792,600

 

Dividends per common share

$

0.20

 

 

$

0.20

 

 

$

0.18

 

 

$

0.14

 

 

$

0.40

 

 

$

0.28

 

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)

 

For the Quarter Ended

 

For the Six Months

 

June 30,

2022

 

March 31,

2022

 

December 31,

2021

 

June 30,

2021

 

June 30,

2022

 

June 30,

2021

Performance ratios:

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

1.96 %

 

1.35 %

 

1.32 %

 

1.11 %

 

1.65 %

 

1.07 %

Return on average stockholders' equity

22.09 %

 

16.05 %

 

15.44 %

 

13.06 %

 

19.16 %

 

12.87 %

Return on average tangible common equity

22.36 %

 

16.25 %

 

15.65 %

 

13.25 %

 

19.40 %

 

13.06 %

Net interest margin

4.01 %

 

3.30 %

 

3.43 %

 

3.12 %

 

3.65 %

 

2.93 %

Efficiency ratio(1)

43.8 %

 

48.5 %

 

48.8 %

 

55.7 %

 

45.9 %

 

56.8 %

Net loan charge-offs as a % of average loans

— %

 

— %

 

— %

 

0.23 %

 

— %

 

0.24 %

Dividend payout ratio(2)

12.90 %

 

19.23 %

 

18.18 %

 

17.72 %

 

15.50 %

 

18.67 %

  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

 

June 30,

2022

 

March 31,

2022

 

December 31,

2021

 

June 30,

2021

Capital ratios:

 

 

 

 

 

 

 

Total Common Equity Tier 1 Capital to Risk-Weighted Assets(1)

 

11.10

%

 

 

11.20

%

 

 

11.18

%

 

 

10.95

%

Total Capital to Risk-Weighted Assets(1)

 

11.80

%

 

 

12.00

%

 

 

12.00

%

 

 

11.84

%

Tier I Capital to Risk-Weighted Assets(1)

 

11.10

%

 

 

11.20

%

 

 

11.18

%

 

 

10.95

%

Tier I Capital to Average Assets(1)

 

10.15

%

 

 

9.80

%

 

 

9.94

%

 

 

9.19

%

Tangible common equity to tangible assets

 

9.16

%

 

 

8.32

%

 

 

8.13

%

 

 

8.30

%

Fully diluted tangible book value per common share

$

28.75

 

 

$

26.75

 

 

$

25.55

 

 

$

23.83

 

  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

 

June 30,

2022

 

March 31,

2022

 

December 31,

2021

 

June 30,

2021

Allowance for loan losses:

 

 

 

 

 

 

 

Balance at beginning of period

$

17,141

 

 

$

16,902

 

 

$

16,803

 

 

$

20,545

 

Charge-offs:

 

 

 

 

 

 

 

Commercial real estate

 

 

 

 

 

 

 

 

 

 

(3,814

)

Commercial business

 

 

 

 

 

 

 

(26

)

 

 

(51

)

Consumer

 

 

 

 

(4

)

 

 

(5

)

 

 

(4

)

Total charge-offs

 

 

 

 

(4

)

 

 

(31

)

 

 

(3,869

)

Recoveries:

 

 

 

 

 

 

 

Commercial real estate

 

77

 

 

 

 

 

 

 

 

 

 

Commercial business

 

 

 

 

13

 

 

 

2

 

 

 

16

 

Consumer

 

 

 

 

1

 

 

 

3

 

 

 

 

Total recoveries

 

77

 

 

 

14

 

 

 

5

 

 

 

16

 

Net loan recoveries (charge-offs)

 

77

 

 

 

10

 

 

 

(26

)

 

 

(3,853

)

(Credit) provision for loan losses

 

(1,445

)

 

 

229

 

 

 

125

 

 

 

(20

)

Balance at end of period

$

15,773

 

 

$

17,141

 

 

$

16,902

 

 

$

16,672

 

 

As of

 

June 30,

2022

 

March 31,

2022

 

December 31,

2021

 

June 30,

2021

Asset quality:

 

 

 

 

 

 

 

Nonaccrual loans

 

 

 

 

 

 

 

Residential real estate

$

2,161

 

 

$

2,181

 

 

$

2,380

 

 

$

1,160

 

Commercial real estate

 

2,955

 

 

 

3,365

 

 

 

3,482

 

 

 

15,392

 

Commercial business

 

787

 

 

 

817

 

 

 

1,728

 

 

 

1,780

 

Construction

 

9,382

 

 

 

9,382

 

 

 

8,997

 

 

 

8,997

 

Total nonaccrual loans

 

15,285

 

 

 

15,745

 

 

 

16,587

 

 

 

27,329

 

Other real estate owned

 

 

 

 

 

 

 

 

 

 

 

Total nonperforming assets

$

15,285

 

 

$

15,745

 

 

$

16,587

 

 

$

27,329

 

 

 

 

 

 

 

 

 

Nonperforming loans as a % of total loans

 

0.74

%

 

 

0.79

%

 

 

0.88

%

 

 

1.57

%

Nonperforming assets as a % of total assets

 

0.63

%

 

 

0.63

%

 

 

0.68

%

 

 

1.20

%

Allowance for loan losses as a % of total loans

 

0.77

%

 

 

0.86

%

 

 

0.89

%

 

 

0.96

%

Allowance for loan losses as a % of nonperforming loans

 

103.19

%

 

 

108.87

%

 

 

101.90

%

 

 

61.00

%

Total past due loans to total loans

 

1.40

%

 

 

0.85

%

 

 

1.72

%

 

 

1.65

%

Total nonaccrual loans declined $1.3 million to $15.3 million as of June 30, 2022 when compared to December 31, 2021. Nonperforming assets as a percentage of total assets was 0.63% at June 30, 2022, down from 0.68% at December 31, 2021. The allowance for loan losses at June 30, 2022 was $15.8 million, representing 0.77% of total loans.

Past due loans decreased to $28.8 million, or 1.40% of total loans, as of June 30, 2022, compared to $32.6 million, or 1.72% of total loans, as of December 31, 2021. As of June 30, 2022, past due loans include one $10.5 million commercial real estate loan, representing 0.51% of total loans, that had reached maturity and is in active negotiations to be refinanced.

BANKWELL FINANCIAL GROUP, INC.

LOAN & DEPOSIT PORTFOLIO (unaudited)

(Dollars in thousands)

Period End Loan Composition

June 30,

2022

 

March 31,

2022

 

December 31,

2021

 

 

Current QTD

% Change

 

YTD

% Change

Residential Real Estate

$

64,253

 

$

68,617

 

$

79,987

 

(6.4

) %

 

(19.7

) %

Commercial Real Estate(1)

 

1,499,364

 

 

1,425,758

 

 

1,356,709

 

5.2

 

 

10.5

 

Construction

 

111,422

 

 

115,514

 

 

98,341

 

(3.5

)

 

13.3

 

Total Real Estate Loans

 

1,675,039

 

 

1,609,889

 

 

1,535,037

 

4.0

 

 

9.1

 

 

 

 

 

 

 

 

 

 

 

Commercial Business

 

372,361

 

 

370,166

 

 

350,975

 

0.6

 

 

6.1

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

9,196

 

 

5,275

 

 

8,869

 

74.3

 

 

3.7

 

Total Loans

$

2,056,596

 

$

1,985,330

 

$

1,894,881

 

3.6

%

 

8.5

%

 

 

 

 

 

 

 

 

 

 

(1) Includes owner occupied commercial real estate.

Gross loans totaled $2.1 billion at June 30, 2022, an increase of $161.7 million compared to December 31, 2021.

Period End Deposit Composition

June 30,

2022

 

March 31,

2022

 

December 31,

2021

 

 

Current QTD

% Change

 

YTD

% Change

Noninterest bearing demand

$

372,584

 

$

412,985

 

$

398,956

 

(9.8

) %

 

(6.6

) %

NOW

 

155,026

 

 

112,567

 

 

119,479

 

37.7

 

 

29.8

 

Money Market

 

833,730

 

 

996,458

 

 

954,674

 

(16.3

)

 

(12.7

)

Savings

 

196,075

 

 

197,961

 

 

193,631

 

(1.0

)

 

1.3

 

Time

 

476,110

 

 

446,233

 

 

457,258

 

6.7

 

 

4.1

 

Total Deposits

$

2,033,525

 

$

2,166,204

 

$

2,123,998

 

(6.1

) %

 

(4.3

) %

Total deposits were $2.0 billion at June 30, 2022, compared to $2.1 billion at December 31, 2021, a decrease of $90.5 million, or 4.3%. The decrease in deposits is primarily a result of seasonal fluctuations in several municipal and commercial deposit relationships.

BANKWELL FINANCIAL GROUP, INC.

NONINTEREST INCOME (unaudited)

(Dollars in thousands)

 

For the Quarter Ended

 

 

 

 

Noninterest income

June 30,

2022

 

March 31,

2022

 

June 30,

2021

 

June 22 vs. March 22

% Change

 

June 22 vs. June 21

% Change

Gains and fees from sales of loans

$

608

 

$

631

 

 

$

814

 

(3.6

) %

 

(25.3

) %

Bank owned life insurance

 

265

 

 

260

 

 

 

251

 

1.9

 

 

5.6

 

Service charges and fees

 

249

 

 

240

 

 

 

217

 

3.8

 

 

14.7

 

Other

 

30

 

 

(173

)

 

 

158

 

(117.3

)

 

(81.0

)

Total noninterest income

$

1,152

 

$

958

 

 

$

1,440

 

20.3

%

 

(20.0

) %

 

For the Six Months Ended

 

 

Noninterest income

June 30, 2022

 

June 30, 2021

 

% Change

Gains and fees from sales of loans

$

1,239

 

 

$

1,327

 

(6.6

) %

Bank owned life insurance

 

525

 

 

 

482

 

8.9

 

Service charges and fees

 

489

 

 

 

416

 

17.5

 

Other

 

(143

)

 

 

1,170

 

(112.2

)

Total noninterest income

$

2,110

 

 

$

3,395

 

(37.8

) %

Noninterest income decreased by $0.3 million to $1.2 million for the quarter ended June 30, 2022 compared to the quarter ended June 30, 2021. Noninterest income decreased by $1.3 million to $2.1 million for the six months ended June 30, 2022 compared to the six months ended June 30, 2021.

The decrease in noninterest income was driven by a reduction in loan sales for the quarter and six months ended June 30, 2022 when compared to the same periods in the prior year. Loan sales decreased $0.2 million and $0.1 million for the quarter and six months ended June 30, 2022, respectively. In addition, noninterest income declined due to the absence of rental income recognized during the quarter and six months ended June 30, 2021, as a result of the disposition of the Company's former headquarters building. Noninterest income also declined for the six months ended June 30, 2022 due to a one-time federal payroll tax credit for COVID-19 of $0.9 million recognized in the quarter ended March 31, 2021.

BANKWELL FINANCIAL GROUP, INC.

NONINTEREST EXPENSE (unaudited)

(Dollars in thousands)

 

For the Quarter Ended

 

 

 

 

Noninterest expense

June 30,

2022

 

March 31,

2022

 

June 30,

2021

 

June 22 vs. March 22

% Change

 

June 22 vs. June 21

% Change

Salaries and employee benefits

$

5,433

 

$

4,940

 

$

3,960

 

10.0

%

 

37.2

%

Occupancy and equipment

 

2,193

 

 

2,150

 

 

3,250

 

2.0

 

 

(32.5

)

Professional services

 

1,000

 

 

981

 

 

547

 

1.9

 

 

82.8

 

Data processing

 

689

 

 

654

 

 

833

 

5.4

 

 

(17.3

)

Director fees

 

339

 

 

352

 

 

327

 

(3.7

)

 

3.7

 

FDIC insurance

 

262

 

 

223

 

 

300

 

17.5

 

 

(12.7

)

Marketing

 

107

 

 

45

 

 

140

 

137.8

 

 

(23.6

)

Other

 

913

 

 

580

 

 

695

 

57.4

 

 

31.4

 

Total noninterest expense

$

10,936

 

$

9,925

 

$

10,052

 

10.2

%

 

8.8

%

 

For the Six Months Ended

 

 

Noninterest expense

June 30, 2022

 

June 30, 2021

 

% Change

Salaries and employee benefits

$

10,373

 

$

8,729

 

18.8

%

Occupancy and equipment

 

4,343

 

 

5,656

 

(23.2

)

Professional services

 

1,981

 

 

1,134

 

74.7

 

Data processing

 

1,343

 

 

1,345

 

(0.1

)

Director fees

 

691

 

 

644

 

7.3

 

FDIC insurance

 

485

 

 

703

 

(31.0

)

Marketing

 

152

 

 

131

 

16.0

 

Other

 

1,493

 

 

1,348

 

10.8

 

Total noninterest expense

$

20,861

 

$

19,690

 

5.9

%

Noninterest expense increased by $0.9 million to $10.9 million for the quarter ended June 30, 2022 compared to the quarter ended June 30, 2021. Noninterest expense increased by $1.2 million to $20.9 million for the six months ended June 30, 2022 compared to the six months ended June 30, 2021. The increase in noninterest expense was primarily driven by an increase in salaries and employee benefits expense and professional services expense, partially offset by a decrease in occupancy and equipment expense.

Salaries and employee benefits expense totaled $5.4 million for the quarter ended June 30, 2022, an increase of $1.5 million when compared to the same period in 2021. Salaries and employee benefits expense totaled $10.4 million for the six months ended June 30, 2022, an increase of $1.6 million when compared to the same period in 2021. The increase in salaries and employee benefits expense was primarily driven by an increase in full time equivalent employees. Full time equivalent employees totaled 132 at June 30, 2022 compared to 125 for the same period in 2021. Average full time equivalent employees totaled 128 for the six months ended June 30, 2022 compared to 124 for the same period in 2021. The increase in salaries and employee benefits expense was also impacted by an increase in variable compensation accruals as a result of the Bank's overall improved performance. The increase in salaries and employee benefits expense was partially offset by higher loan originations, which enabled the bank to defer a greater amount of expenses.

Professional services expense totaled $1.0 million for the quarter ended June 30, 2022, an increase of $0.5 million when compared to the same period in 2021. Professional services expense totaled $2.0 million for the six months ended June 30, 2022, an increase of $0.8 million when compared to the same period in 2021. The increase in professional services expense was primarily driven by consulting fees associated with various projects, including our core system conversion.

Occupancy and equipment expense totaled $2.2 million for the quarter ended June 30, 2022, a decrease of $1.1 million when compared to the same period in 2021. Occupancy and equipment expense totaled $4.3 million for the six months ended June 30, 2022, a decrease of $1.3 million when compared to the same period in 2021. The decrease in occupancy and equipment expense was primarily driven by the curtailment of additional cleaning costs associated with precautions taken to prevent the spread of COVID-19 during the six months ended June 30, 2021.

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

June 30,

2022

 

March 31,

2022

 

December 31,

2021

 

June 30,

2021

Total Equity

$

225,467

 

 

$

210,220

 

 

$

201,987

 

 

$

190,795

 

Less:

 

 

 

 

 

 

 

Goodwill

 

2,589

 

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

Other intangibles

 

 

 

 

 

 

 

 

 

 

58

 

Tangible Common Equity

$

222,878

 

 

$

207,631

 

 

$

199,398

 

 

$

188,148

 

 

 

 

 

 

 

 

 

Total Assets

$

2,435,552

 

 

$

2,496,877

 

 

$

2,456,264

 

 

$

2,269,825

 

Less:

 

 

 

 

 

 

 

Goodwill

 

2,589

 

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

Other intangibles

 

 

 

 

 

 

 

 

 

 

58

 

Tangible Assets

$

2,432,963

 

 

$

2,494,288

 

 

$

2,453,675

 

 

$

2,267,178

 

 

 

 

 

 

 

 

 

Tangible Common Equity to Tangible Assets

 

9.16

%

 

 

8.32

%

 

 

8.13

%

 

 

8.30

%

 

As of

Computation of Fully Diluted Tangible Book Value per Common Share

June 30,

2022

 

March 31,

2022

 

December 31,

2021

 

June 30,

2021

Total shareholders' equity

$

225,467

 

$

210,220

 

$

201,987

 

$

190,795

Less:

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

Common shareholders' equity

$

225,467

 

$

210,220

 

$

201,987

 

$

190,795

Less:

 

 

 

 

 

 

 

Goodwill

 

2,589

 

 

2,589

 

 

2,589

 

 

2,589

Other intangibles

 

 

 

 

 

 

 

58

Tangible common shareholders' equity

$

222,878

 

$

207,631

 

$

199,398

 

$

188,148

 

 

 

 

 

 

 

 

Common shares issued and outstanding

 

7,752,389

 

 

7,761,338

 

 

7,803,166

 

 

7,895,101

 

 

 

 

 

 

 

 

Fully Diluted Tangible Book Value per Common Share

$

28.75

 

$

26.75

 

$

25.55

 

$

23.83

BANKWELL FINANCIAL GROUP, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited) - Continued

(Dollars in thousands)

 

For the Quarter Ended

 

For the Six Months Ended

Computation of Efficiency Ratio

June 30,

2022

 

March 31,

2022

 

December 31,

2021

 

June 30,

2021

 

June 30,

2022

 

June 30,

2021

Noninterest expense

$

10,936

 

 

$

9,925

 

 

$

9,679

 

 

$

10,052

 

 

$

20,861

 

 

$

19,690

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

 

 

 

 

48

 

 

 

9

 

 

 

 

 

 

19

 

Other real estate owned expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted noninterest expense

$

10,936

 

 

$

9,925

 

 

$

9,631

 

 

$

10,043

 

 

$

20,861

 

 

$

19,671

 

Net interest income

$

23,823

 

 

$

19,510

 

 

$

18,928

 

 

$

16,579

 

 

$

43,333

 

 

$

31,234

 

Noninterest income

 

1,152

 

 

 

958

 

 

 

825

 

 

 

1,440

 

 

 

2,110

 

 

 

3,395

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Net gain on sale of available for sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of other real estate owned, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

$

24,975

 

 

$

20,468

 

 

$

19,753

 

 

$

18,019

 

 

$

45,443

 

 

$

34,629

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

43.8

%

 

 

48.5

%

 

 

48.8

%

 

 

55.7

%

 

 

45.9

%

 

 

56.8

%

 

For the Quarter Ended

 

For the Six Months Ended

Computation of Return on Average Tangible Common Equity

June 30,

2022

 

March 31,

2022

 

December 31,

2021

 

June 30,

2021

 

June 30,

2022

 

June 30,

2021

Net Income Attributable to Common Shareholders

$

12,022

 

 

$

8,212

 

 

$

7,814

 

 

$

6,228

 

 

$

20,234

 

 

$

11,917

 

Total average shareholders' equity

$

218,250

 

 

$

207,541

 

 

$

200,752

 

 

$

191,224

 

 

$

212,932

 

 

$

186,664

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Average Goodwill

 

2,589

 

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

 

 

2,589

 

Average Other intangibles

 

 

 

 

 

 

 

45

 

 

 

64

 

 

 

 

 

 

68

 

Average tangible common equity

$

215,661

 

 

$

204,952

 

 

$

198,118

 

 

$

188,571

 

 

$

210,343

 

 

$

184,007

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Return on Average Tangible Common Equity

 

22.36

%

 

 

16.25

%

 

 

15.65

%

 

 

13.25

%

 

 

19.40

%

 

 

13.06

%

BANKWELL FINANCIAL GROUP, INC.

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

(Dollars in thousands)

 

For the Quarter Ended

 

June 30, 2022

 

June 30, 2021

 

Average

Balance

 

Interest

 

Yield/

Rate (4)

 

Average

Balance

 

Interest

 

Yield/

Rate (4)

Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and Fed funds sold

$

247,013

 

$

449

 

0.73

%

 

$

336,073

 

$

90

 

0.11

%

Securities(1)

 

118,534

 

 

809

 

2.73

 

 

 

103,297

 

 

761

 

2.95

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

1,443,239

 

 

17,278

 

4.74

 

 

 

1,163,134

 

 

13,678

 

4.65

 

Residential real estate

 

66,460

 

 

553

 

3.33

 

 

 

105,975

 

 

958

 

3.62

 

Construction

 

106,285

 

 

1,938

 

7.21

 

 

 

110,780

 

 

1,036

 

3.70

 

Commercial business

 

393,318

 

 

5,327

 

5.36

 

 

 

296,613

 

 

3,506

 

4.68

 

Consumer

 

5,298

 

 

45

 

3.43

 

 

 

8,851

 

 

88

 

3.98

 

Total loans

 

2,014,600

 

 

25,141

 

4.94

 

 

 

1,685,353

 

 

19,266

 

4.52

 

Federal Home Loan Bank stock

 

3,263

 

 

15

 

1.79

 

 

 

4,219

 

 

25

 

2.34

 

Total earning assets

 

2,383,410

 

$

26,414

 

4.38

%

 

 

2,128,942

 

$

20,142

 

3.74

%

Other assets

 

79,380

 

 

 

 

 

 

117,334

 

 

 

 

Total assets

$

2,462,790

 

 

 

 

 

$

2,246,276

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

NOW

$

136,414

 

$

59

 

0.17

%

 

$

118,806

 

$

54

 

0.18

%

Money market

 

931,101

 

 

1,146

 

0.49

 

 

 

782,079

 

 

941

 

0.48

 

Savings

 

198,304

 

 

103

 

0.21

 

 

 

168,870

 

 

92

 

0.22

 

Time

 

451,508

 

 

675

 

0.60

 

 

 

538,915

 

 

1,657

 

1.23

 

Total interest bearing deposits

 

1,717,327

 

 

1,983

 

0.46

 

 

 

1,608,670

 

 

2,744

 

0.68

 

Borrowed Money

 

85,092

 

 

558

 

2.59

 

 

 

101,586

 

 

769

 

3.00

 

Total interest bearing liabilities

 

1,802,419

 

$

2,541

 

0.57

%

 

 

1,710,256

 

$

3,513

 

0.82

%

Noninterest bearing deposits

 

407,890

 

 

 

 

 

 

298,467

 

 

 

 

Other liabilities

 

34,231

 

 

 

 

 

 

46,329

 

 

 

 

Total liabilities

 

2,244,540

 

 

 

 

 

 

2,055,052

 

 

 

 

Shareholders' equity

 

218,250

 

 

 

 

 

 

191,224

 

 

 

 

Total liabilities and shareholders' equity

$

2,462,790

 

 

 

 

 

$

2,246,276

 

 

 

 

Net interest income(2)

 

 

$

23,873

 

 

 

 

 

$

16,629

 

 

Interest rate spread

 

 

 

 

3.81

%

 

 

 

 

 

2.92

%

Net interest margin(3)

 

 

 

 

4.01

%

 

 

 

 

 

3.12

%

  1. Average balances and yields for securities are based on amortized cost.
  2. The adjustment for securities and loans taxable equivalency amounted to $50 thousand and $50 thousand for the quarters ended June 30, 2022 and 2021, 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.

BANKWELL FINANCIAL GROUP, INC.

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

(Dollars in thousands)

 

For the Six Months Ended

 

June 30, 2022

 

June 30, 2021

 

Average

Balance

 

Interest

 

Yield/

Rate (4)

 

Average

Balance

 

Interest

 

Yield/

Rate (4)

Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and Fed funds sold

$

296,239

 

$

603

 

0.41

%

 

$

368,779

 

$

198

 

0.11

%

Securities(1)

 

115,452

 

 

1,563

 

2.71

%

 

 

102,252

 

 

1,549

 

3.03

%

Loans:

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

1,393,836

 

 

32,273

 

4.61

%

 

 

1,146,258

 

 

26,354

 

4.57

%

Residential real estate

 

70,125

 

 

1,224

 

3.49

%

 

 

109,003

 

 

1,996

 

3.66

%

Construction

 

104,176

 

 

2,971

 

5.67

%

 

 

102,459

 

 

1,916

 

3.72

%

Commercial business

 

388,249

 

 

9,954

 

5.10

%

 

 

295,682

 

 

6,763

 

4.55

%

Consumer

 

5,666

 

 

147

 

5.25

%

 

 

6,956

 

 

137

 

3.96

%

Total loans

 

1,962,052

 

 

46,569

 

4.72

%

 

 

1,660,358

 

 

37,166

 

4.45

%

Federal Home Loan Bank stock

 

3,051

 

 

29

 

1.94

%

 

 

5,356

 

 

56

 

2.11

%

Total earning assets

 

2,376,794

 

$

48,764

 

4.08

%

 

 

2,136,745

 

$

38,969

 

3.64

%

Other assets

 

89,866

 

 

 

 

 

 

115,718

 

 

 

 

Total assets

$

2,466,660

 

 

 

 

 

$

2,252,463

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

NOW

$

124,361

 

$

106

 

0.17

%

 

$

109,990

 

$

97

 

0.18

%

Money market

 

950,131

 

 

2,326

 

0.49

%

 

 

759,435

 

 

1,891

 

0.50

%

Savings

 

196,400

 

 

204

 

0.21

%

 

 

164,630

 

 

217

 

0.27

%

Time

 

452,676

 

 

1,553

 

0.69

%

 

 

574,876

 

 

3,653

 

1.28

%

Total interest bearing deposits

 

1,723,568

 

 

4,189

 

0.49

%

 

 

1,608,931

 

 

5,858

 

0.73

%

Borrowed Money

 

84,770

 

 

1,144

 

2.68

%

 

 

126,886

 

 

1,777

 

2.79

%

Total interest bearing liabilities

 

1,808,338

 

$

5,333

 

0.59

%

 

 

1,735,817

 

$

7,635

 

0.89

%

Noninterest bearing deposits

 

406,707

 

 

 

 

 

 

284,226

 

 

 

 

Other liabilities

 

38,683

 

 

 

 

 

 

45,756

 

 

 

 

Total liabilities

 

2,253,728

 

 

 

 

 

 

2,065,799

 

 

 

 

Shareholders' equity

 

212,932

 

 

 

 

 

 

186,664

 

 

 

 

Total liabilities and shareholders' equity

$

2,466,660

 

 

 

 

 

$

2,252,463

 

 

 

 

Net interest income(2)

 

 

$

43,431

 

 

 

 

 

$

31,334

 

 

Interest rate spread

 

 

 

 

3.49

%

 

 

 

 

 

2.75

%

Net interest margin(3)

 

 

 

 

3.65

%

 

 

 

 

 

2.93

%

  1. Average balances and yields for securities are based on amortized cost.
  2. The adjustment for securities and loans taxable equivalency amounted to $98 thousand and $100 thousand for the six months ended June 30, 2022 and 2021, 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.

 

Contacts

Christopher R. Gruseke

President and Chief Executive Officer

Penko Ivanov

Executive Vice President and Chief Financial Officer

(203) 652-0166

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