GICS Sector : Financial Services
Bankwell Financial Group, Inc.operates as the bank holding company for Bankwell Bank that provides various banking services for individual and commercial customers.It offers various traditional depository products, including checking, savings, money market, and certificates of deposit.
Bankwell Financial Group reported a robust third-quarter 2025 performance, with GAAP net income reaching $10.1 million or $1.27 per share, significantly surpassing the estimated $1.02 per share. The company's pre-provision net revenue return on assets was 1.7%, marking a 27 basis point increase from the prior quarter. The net interest margin expanded to 3.34%, driven by a 13 basis point rise in loan yields and improved deposit costs. The earnings beat was a testament to the company's operational efficiency and strategic initiatives.
Publication Date: Nov -24
The company witnessed strong loan originations, with $220 million in fundings during the third quarter, bringing year-to-date fundings to $500 million. The SBA division saw increased momentum, with gains on sale rising to $1.4 million for the quarter. However, the government shutdown may temporarily impact SBA results for the remainder of the year. Noninterest income increased 24% versus the linked quarter, largely driven by $1.4 million of SBA gain on sale income.
Credit trends continued to improve, with nonperforming assets as a percentage of total assets falling to 56 basis points. The company's efficiency ratio improved to 51.4% for the quarter, indicating better cost management. The balance sheet remains well-capitalized and liquid, with total assets of $3.2 billion and a consolidated common equity Tier 1 ratio of 10.39%. Tangible book value increased to $36.84.
The company revised its loan growth guidance to flat for the year due to elevated payoffs. Noninterest income guidance was affirmed at $7 million to $8 million for the full year, and net interest income guidance was also affirmed at $97 million to $98 million. The company expects its net interest margin to remain relatively flat in the fourth quarter but improve as term deposits mature. Analysts estimate next year's revenue growth at 13.7%, indicating a positive outlook.
With a Price-to-Tangible Book Value (P/TBV) ratio of approximately 1.19, slightly above the industry average, and a Dividend Yield of 1.78%, Bankwell Financial Group presents a relatively attractive valuation. The stock's current P/E Ratio is 12.02, suggesting that the market has already priced in some of the company's growth prospects. The expected repricing of time deposits favorably over the next 12 months is likely to contribute to the company's profitability.
Has Bankwell Financial Group (BWFG) Outpaced Other Finance Stocks This Year?
Nov -19
What Makes Bankwell Financial Group (BWFG) a New Buy Stock
Oct -29
Bankwell Financial: Margin Growth To Drive Earnings, Potential For Price Upside
Oct -28
Bankwell Financial Group, Inc. (BWFG) Q3 2025 Earnings Call Transcript
Oct -23
Bankwell Financial Group, Inc. (BWFG) Beats Q3 Earnings and Revenue Estimates
Oct -23
Bankwell Financial Group Reports Operating Results for the Third Quarter, Declares Fourth Quarter Dividend
Oct -23
Bankwell Financial Group's Improving Margins Tell A Story
Jul -30
Bankwell Financial Group, Inc. (BWFG) Q2 2025 Earnings Call Transcript
Jul -28
Bankwell Financial Group, Inc.'s 4.0% growth in Banking and Related Activities is driven by increasing loan demand, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digital transformation, cost savings initiatives, and a strong capital position have contributed to its growth momentum.
Bankwell Financial Group, Inc. offers a range of commercial banking services, including cash management, commercial loans, and treasury management solutions, designed to meet the financial needs of businesses.
The company provides consumer banking services, including checking and savings accounts, credit cards, personal loans, and mortgages, to individuals and families.
Bankwell Financial Group, Inc. offers a range of mortgage products, including residential and commercial mortgages, home equity loans, and refinancing options.
The company provides wealth management services, including investment management, financial planning, and trust services, to individuals, families, and institutions.
Bankwell Financial Group, Inc. offers insurance services, including life insurance, disability insurance, and long-term care insurance, to individuals and businesses.
The threat of substitutes for Bankwell Financial Group, Inc. is medium due to the presence of alternative financial institutions and online banking platforms.
The bargaining power of customers for Bankwell Financial Group, Inc. is low due to the lack of negotiating power of individual customers.
The bargaining power of suppliers for Bankwell Financial Group, Inc. is medium due to the presence of multiple suppliers of financial services and technology.
The threat of new entrants for Bankwell Financial Group, Inc. is high due to the ease of entry into the financial services industry and the presence of fintech startups.
The intensity of rivalry for Bankwell Financial Group, Inc. is high due to the presence of multiple competitors in the financial services industry and the need to differentiate itself.
| Value | |
|---|---|
| Debt Weight | 37.78% |
| Debt Cost | 5.37% |
| Equity Weight | 62.22% |
| Equity Cost | 7.94% |
| WACC | 6.97% |
| Leverage | 60.71% |
Value: 7.4
Growth: 6.8
Quality: 6.0
Yield: 8.0
Momentum: 7.5
Volatility: 8.0
1-Year Total Return ->
Value: 7.3
Growth: 5.4
Quality: 6.0
Yield: 7.0
Momentum: 8.5
Volatility: 8.0
1-Year Total Return ->
Value: 6.3
Growth: 4.8
Quality: 6.9
Yield: 7.0
Momentum: 8.0
Volatility: 8.7
1-Year Total Return ->
Value: 7.2
Growth: 6.1
Quality: 5.8
Yield: 8.0
Momentum: 5.0
Volatility: 7.7
1-Year Total Return ->
Value: 5.9
Growth: 5.2
Quality: 5.6
Yield: 8.0
Momentum: 8.0
Volatility: 6.3
1-Year Total Return ->
Value: 6.8
Growth: 6.1
Quality: 5.4
Yield: 4.0
Momentum: 9.0
Volatility: 7.7
1-Year Total Return ->