NEW CANAAN, Conn. - Bankwell Financial Group, Inc. (NASDAQ: NASDAQ:BWFG), a regional bank with a market capitalization of $227.56 million, announced an increase in its fourth-quarter earnings and declared a cash dividend for shareholders. The financial institution reported a GAAP net income of $2.5 million, or $0.32 per share, for the fourth quarter of 2024, compared to $1.9 million, or $0.24 per share, for the previous quarter. According to InvestingPro analysis, the company’s shares are currently trading near their Fair Value, with a P/E ratio of 15.41.
The company’s board of directors has declared a $0.20 per share cash dividend, which is payable on February 21, 2025, to shareholders of record as of February 11, 2025. InvestingPro data reveals that Bankwell has maintained dividend payments for 10 consecutive years, with a current dividend yield of 2.68%.
Despite the positive earnings report, pre-tax, pre-provision net revenue (PPNR) declined 12% to $7.9 million, or $1.02 per share, from $9.0 million, or $1.17 per share, in the third quarter of 2024.
Bankwell Financial Group CEO Christopher R. Gruseke highlighted the execution of purchase and sale agreements on two nonperforming assets, totaling $35.4 million, which will significantly reduce nonperforming assets as a percentage of total assets. He also noted the progress in reducing commercial real estate (CRE) exposure and anticipated benefits from repricing time deposits and maturing loans.
The company’s net interest margin was reported at 2.60%, a decrease from the third quarter’s 2.72%, mainly due to lower loan fees and higher cash balances. However, with $1.3 billion of time deposits set to reprice at lower rates in the next 12 months, an annualized increase in net interest income of approximately $4.4 million is expected.
Bankwell Financial Group has launched a new SBA (LON:SBA) lending division in the first quarter of 2025 and anticipates growth in noninterest income from future gains on the sale of guaranteed portions of new SBA loans.
For the full year 2025, the company is guiding to $93-$95 million in net interest income, $7-$8 million in noninterest income, and $56-$57 million in noninterest expense.
The company’s asset quality has seen improvements, with a decrease in nonperforming loans and a stable allowance for credit losses. Total (EPA:TTEF) assets increased by 1.7% year over year to $3.3 billion as of December 31, 2024. InvestingPro analysis indicates a FAIR overall Financial Health Score of 2.23, with additional insights available to subscribers. Get access to over 30 key financial metrics and exclusive ProTips by subscribing to InvestingPro.
The information in this article is based on a press release statement from Bankwell Financial Group, Inc.
In other recent news, Bankwell Financial Group reported a rise in its third quarter net income for 2024, reaching $1.9 million, up from $1.1 million in the previous quarter. However, the company’s earnings were impacted by an $8.2 million charge-off against a $13.7 million office loan participation. In addition, Bankwell Financial Group is set to record an $8.2 million charge-off related to a defaulted loan for a Class A office park in suburban New Jersey.
The company also announced a new share repurchase plan, allowing for the buyback of up to 250,000 shares of its common stock. These are recent developments following an amendment to a previous agreement with investor Lawrence B. Seidman, which now permits Seidman and his affiliates to acquire up to 14.99% of Bankwell’s fully diluted outstanding common stock.
In other updates, Bankwell Financial Group has made significant amendments to its bylaws, reflecting updates in corporate practices and legal requirements. Changes approved by the company’s Board of Directors include altering the month for the annual shareholders’ meeting and adjusting the requirement for the number of inspectors of elections at these meetings. These developments underscore Bankwell Financial Group’s ongoing efforts to ensure its governance practices are up-to-date and compliant with legal standards.
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