BWFG · Bankwell Financial Group, Inc.

Bankwell Financial Group delivered strong Q1 2026 results with GAAP net income rising to $11.3 million or $1.41 per diluted share from $9.1 million or $1.15 in Q4 2025, fueled by core deposit growth of $113 million including $39 million in low-cost deposits, which funded $27.1 million net loan growth from $190 million originations ($34 million SBA). This reduced brokered deposits by $44.5 million and FHLB borrowings by $50 million, lowering the wholesale ratio to 18.1%. Net interest margin compressed 12 basis points to 3.28% from 3.40%, with 7 basis points due to day count and the rest from floating rate loan repricing partially offset by deposit cost improvement to 3.10% (down 5 bps), aided by $270 million time deposits repricing 44 bps lower. Noninterest income held at $3.3 million, boosted by $2.4 million SBA gains (up from $2.2 million), while noninterest expense rose $1.4 million to $16.9 million from seasonal compensation and hires, yet full-year guidance remains $64-65 million. CEO Gruseke highlighted profitability gains, strategic deposit shifts, SBA execution, and 42% floating rate loans, affirming NII and loan growth outlook while raising noninterest income guidance to $12-13 million on stronger SBA gains and fees. Credit quality showed ACL-Loans at $29.6 million (1.03% of loans), with $1.0 million credit to provision amid $19.0 million nonperforming loans (0.66% of loans). The $0.20/share dividend reflects confidence, payable May 19 to May 8 record holders, with capital ratios well above well-capitalized (CET1 11.96%). New Brooklyn branch supports commercial expansion.