Bankwell (BWFG) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, January 29, 2026 astatine 10:59 AM CST 17 min read

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Thursday, January 29, 2026 astatine 11 a.m. ET

• Chief Executive Officer — Christopher R. Gruseke

• Chief Financial Officer — Courtney E. Sacchetti

• President and Chief Banking Officer — Matthew J. McNeill

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Christopher R. Gruseke: Welcome, and convey you to everyone for joining Bankwell Financial Group, Inc.'s quarterly net call. This morning, I'm joined by Courtney E. Sacchetti, our Chief Financial Officer, and Matthew J. McNeill, our President and Chief Banking Officer. Appreciate your involvement successful our show and this accidental to sermon our results with you. Our 4th fourth GAAP nett income was $9.1 cardinal oregon $1.15 per share, which includes a $1.5 cardinal one-time accommodation to the income taxation proviso associated with assorted authorities taxation filings and changes successful estimated taxation positions. This accommodation relates to some existent and anterior twelvemonth taxation estimates. Excluding this one-time adjustment, operating income for the 4th was $10.7 cardinal oregon $1.36 per stock connected an operating basis.

A reconciliation of GAAP operating results is included successful our materials, and we promote you to reappraisal some metrics together. Courtney volition locomotion you done these results successful much item successful a moment. Pre-provision nett gross instrumentality connected mean assets was 180 ground points for the quarter, an summation of 10 ground points from the anterior 4th and a 75 ground constituent summation implicit 2024. This betterment reflects continued enlargement of our nett involvement borderline arsenic good arsenic beardown maturation successful non-interest income, driven chiefly by our SBA division. We besides made further advancement successful reducing our plus balances during the 4th and support a constructive outlook connected recognition prime heading into 2026.

While our nett involvement borderline has continued to grow this quarter, arsenic we've antecedently signaled, the gait of that enlargement has moderated. This is simply a effect of our intentional accrued vulnerability to floating complaint loans. We ended 2025 with floating complaint loans comprising 38% of our full indebtedness portfolio, compared to 23% astatine the extremity of 2024. On the backing side, we've taken vantage of the little complaint situation to rise $1.2 cardinal of clip deposits this twelvemonth and person besides reduced rates connected cardinal non-maturity interest-bearing deposits. In addition, the premix of our deposits continues to improve. Average low-cost deposit balances accrued by $22 cardinal oregon 5% implicit the anterior 4th and by $86 cardinal oregon 21% versus 2024.