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- **Strong Financial Performance**: 13% quarter-over-quarter increase in net income, NIM expansion to 3.34%, and efficiency ratio improvement to 51.4%.
- **SBA Division Momentum**: $1.4 million in Q3 gains on sales, with 88% of annual origination goal achieved despite government shutdown risks.
- **Deposit Strategy Success**: 50% beta on $1 billion deposits, supporting NIM resilience to rate cuts.
- **Revised Guidance**: Flat loan growth for 2025, with noninterest income targeting $7-8 million.
- **Credit Improvement**: Nonperforming assets reduced to 56 basis points, allowance coverage strong at 177%.

**【CEO Summary Section】**
- GAAP net income of $10.1 million ($1.27 per share), up 13% quarter-over-quarter. Pre-provision net revenue return on assets improved to 1.7%.
- Net interest margin (NIM) expanded to 3.34%, driven by 13 basis points rise in loan yields and 10 basis points decline in deposit costs.
- SBA division achieved $1.4 million in gains on sales, with year-to-date originations at $44 million (88% of full-year goal). Nonperforming assets reduced to 56 basis points of total assets.
- Efficiency ratio improved to 51.4%, reflecting strong cost control and operational leverage.

**【CFO Financial Commentary】**
- Net interest income reached $26 million, with noninterest income of $2.5 million (8.8% of total revenue). SBA gains on sales up 24% quarter-over-quarter.
- Deposit beta strategy: 50% beta on $1 billion of non-maturity deposits, with $250 million indexed to Fed funds. Anticipated 5 basis points NIM expansion per 25bp rate cut.
- Revised 2025 loan growth guidance to flat, with noninterest income guidance of $7-8 million.
- Capital ratios expanded, with tangible book value increasing to $36.84.

**【Q&A Highlights】**
- **Loan Pricing & Payoffs**: Year-to-date originations at 7.86%, with $500 million funded. Elevated payoffs (record levels) expected to continue, impacting net growth.
- **Deposit Strategy**: Low-cost deposits grew $64 million year-over-year. Teams hired in Q2-Q3 expected to contribute meaningfully in 2026.
- **SBA Challenges**: Government shutdown delays guarantee processing, temporarily impacting gains on sales. SBA division capable of scaling beyond $50 million annual origination target.
- **Credit Quality**: Allowance for credit losses at 110 basis points, coverage of nonperforming loans at 177%. Nonperforming assets reduced by $7 million quarter-over-quarter.

Bankwell Financial Group, Inc. (BWFG) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

BWFG

BWFG fundamentals

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