Bankwell Financial Group (NASDAQ:BWFG) Posts Quarterly Earnings Results, Beats Estimates By $0.14 EPS

Bankwell Financial Group (NASDAQ:BWFG) released its earnings results on Thursday. The bank reported $1.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.44 by $0.14, Zacks reports. The firm had revenue of $35.33 million during the quarter, compared to analyst estimates of $33.33 million. Bankwell Financial Group had a net margin of 20.49% and a return on equity of 14.58%.

Here are the key takeaways from Bankwell Financial Group’s conference call:

• Record third-quarter results: GAAP net income reached $12.7 million, or $1.58 per share, while operating net income excluding core-conversion costs was $15 million, or $1.86 per share.
• Margin and outlook improved: Net interest margin expanded 13 basis points to 3.71%, prompting the company to raise full-year net interest income guidance to $119 million-$121 million and non-interest income guidance to $14 million-$15 million.
• Credit performance strengthened: The sale of the largest legacy non-performing asset generated a $2.5 million recovery, contributing to $1.4 million of net recoveries; non-performing assets declined to 20 basis points of total assets.
• The SBA platform delivered record quarterly gain-on-sale income of $2.8 million, with management citing a robust pipeline and continued growth potential into 2027.
• Core conversion will weigh on expenses: Bankwell incurred $3 million of conversion-related costs this quarter and expects an additional $400,000-$500,000 per quarter over the next four quarters, with the conversion targeted for completion in the second half of 2027.

Bankwell Financial Group Price Performance

Shares of BWFG stock traded up $1.63 on Wednesday, hitting $73.31. 38,882 shares of the stock traded hands, compared to its average volume of 55,865. The company has a debt-to-equity ratio of 0.31, a current ratio of 1.03 and a quick ratio of 1.03. Bankwell Financial Group has a 52 week low of $42.81 and a 52 week high of $73.74. The firm has a 50 day simple moving average of $66.63 and a two-hundred day simple moving average of $57.11. The firm has a market cap of $584.28 million, a price-to-earnings ratio of 12.95 and a beta of 0.58.

Bankwell Financial Group Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 20th. Stockholders of record on Monday, November 9th will be paid a $0.20 dividend. The ex-dividend date of this dividend is Monday, November 9th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.1%. Bankwell Financial Group’s dividend payout ratio is 14.13%.

Insider Buying and Selling at Bankwell Financial Group

In other Bankwell Financial Group news, Director Eric Dale purchased 530 shares of the business’s stock in a transaction on Tuesday, September 8th. The stock was acquired at an average price of $67.11 per share, for a total transaction of $35,568.30. Following the purchase, the director owned 43,026 shares of the company’s stock, valued at approximately $2,887,474.86. This represents a 1.25% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Lawrence Seidman purchased 10,000 shares of the firm’s stock in a transaction on Friday, August 7th. The shares were acquired at an average cost of $66.63 per share, for a total transaction of $666,300.00. Following the completion of the acquisition, the director owned 222,690 shares of the company’s stock, valued at approximately $14,837,834.70. This trade represents a 4.70% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased a total of 19,040 shares of company stock valued at $1,269,057 in the last ninety days. 20.98% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on BWFG shares. Weiss Ratings cut Bankwell Financial Group from a “buy (a)” rating to a “buy (a-)” rating in a research report on Monday, October 26th. Keefe, Bruyette & Woods reaffirmed an “outperform” rating and set a $79.00 price target (up from $72.00) on shares of Bankwell Financial Group in a research report on Friday, October 30th. Zacks Research upgraded shares of Bankwell Financial Group from a “hold” rating to a “strong-buy” rating in a research note on Monday. Finally, Hovde Group raised their price objective on shares of Bankwell Financial Group from $51.00 to $63.00 and gave the stock a “market perform” rating in a report on Monday, July 27th. Two investment analysts have rated the stock with a Strong Buy rating, one has given a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat.com, Bankwell Financial Group has a consensus rating of “Buy” and an average target price of $71.00.

Bankwell Financial Group Company Profile

Bankwell Financial Group, Inc is a bank holding company headquartered in New Canaan, Connecticut, and serves as the parent company of Bankwell Bank. Bankwell Bank provides commercial, business and personal banking services, with branch locations primarily across Fairfield and New Haven counties in Connecticut, along with a New York presence.

The company’s deposit offerings include checking, savings and money market accounts, as well as certificates of deposit, all supported by an online and mobile banking platform for convenient account access.