Bankwell Financial's Q2 net income rises to $9.1 mln

Overview

• Bankwell Financial Q2 revenue beats analyst expectations, driven by reduced funding costs

• Net income for Q2 rises to $9.1 mln, reflecting improved profitability

• Company declares $0.20 per share dividend, updates 2025 guidance for income growth

Outlook

• Bankwell updates 2025 net interest income guidance to $97 - $98 mln

• Company reiterates 2025 noninterest income guidance of $7 - $8 mln

• Bankwell increases 2025 noninterest expense guidance to $58 - $59 mln

• Company anticipates deposit growth boost from new banking teams in 2026

Result Drivers

• NET INTEREST MARGIN - Increased to 3.10% due to improved funding costs and strategic repricing of deposits

• SBA LOAN GROWTH - SBA loan originations contributed to $24 mln net loan growth and $1.5 mln in non-interest income

• DEPOSIT STRATEGY - Addition of five deposit-focused private banking teams expected to boost deposit growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Bankwell Financial Group Inc is $40.25, about 7.1% above its July 25 closing price of $37.39

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: