BANKWELL FINANCIAL GROUP REPORTS RECORD EARNINGS FOR THE THIRD QUARTER, DECLARES FOURTH QUARTER DIVIDEND
Bankwell Financial Group, Inc. (BWFG) filed an SEC Form 8-K — Results of Operations and Financial Condition. BANKWELL FINANCIAL GROUP REPORTS RECORD EARNINGS FOR THE THIRD QUARTER, DECLARES FOURTH QUARTER DIVIDEND New Canaan, CT – October 29, 2026 – Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $12.7 million, or $1.58 per share for the third quarter of 2026,
How this was made
The 30-second read
Why it matters
The company reported record GAAP net income and EPS for Q3, highlighted improving asset quality and NIM expansion, and provided updated full-year 2026 guidance alongside disclosure of core conversion costs and expectations for additional costs.
Market read
Traders can reassess near-term earnings power and dividend attractiveness using the fresh Q3 print, declared dividend, and updated full-year guidance ranges.
What to watch
The guidance update is tied to SBA platform strength and NII/non-interest income ranges; traders may want to monitor whether loan growth and asset quality trends persist as conversion implementation continues.
BANKWELL FINANCIAL GROUP REPORTS RECORD EARNINGS FOR THE THIRD QUARTER, DECLARES FOURTH QUARTER DIVIDEND
Third-quarter GAAP net income reached $12.7 million and diluted EPS was $1.58, while net interest income increased to $31.4 million, net interest margin expanded to 3.71%, SBA loan sale gains lifted noninterest income, and nonperforming assets declined to 0.20% of total assets. Results included $3.0 million of core conversion costs.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, third quarter of 2026non-GAAP | $35.33M | – | – |
| Net interest income, third quarter of 2026GAAP | $31.37M | – | – |
| Total noninterest income, third quarter of 2026GAAP | $3.96M | – | – |
| Gains and fees from sales of loans, third quarter of 2026GAAP | $2.81M | – | – |
| Total noninterest expense, third quarter of 2026GAAP | $19.83M | – | – |
| Salaries and employee benefits, third quarter of 2026GAAP | $10.36M | – | – |
| Income before income tax expense, third quarter of 2026GAAP | $16.77M | – | – |
| Income tax expense, third quarter of 2026GAAP | $4.03M | – | – |
| Net income, third quarter of 2026GAAP | $12.73M | – | – |
| Operating net income, third quarter of 2026non-GAAP | $15.02M | – | – |
| Diluted earnings per common share, third quarter of 2026GAAP | $ 1.58 | – | – |
| Basic earnings per common share, third quarter of 2026GAAP | $ 1.60 | – | – |
| Operating earnings per common share - diluted, third quarter of 2026non-GAAP | $ 1.86 | – | – |
| Pre-tax, pre-provision net revenue, third quarter of 2026non-GAAP | $15.50M | a decrease of 11.6% | – |
| Operating PPNR, third quarter of 2026non-GAAP | $18.54M | – | – |
| Return on average assets, third quarter of 2026non-GAAP | 1.45 % | – | – |
| Return on average tangible shareholders' equity, third quarter of 2026non-GAAP | 15.28 % | – | – |
| Operating return on average assets, third quarter of 2026non-GAAP | 1.71 % | – | – |
| Operating return on average tangible shareholders' equity, third quarter of 2026non-GAAP | 18.02 % | – | – |
| Net interest margin, third quarter of 2026non-GAAP | 3.71 % | expanded 13 basis points | – |
| Efficiency ratio, third quarter of 2026non-GAAP | 56.1 % | – | – |
| Operating efficiency ratio, third quarter of 2026non-GAAP | 47.5 % | – | – |
| Earning asset yields, third quarter of 2026other | 6.34% | expanded 8 basis points | – |
| Net recoveries, third quarter of 2026GAAP | $1.4M | – | – |
| (Credit) provision for credit losses - loans, third quarter of 2026GAAP | −$1.36M | – | – |
| ACL-Loans, September 30, 2026GAAP | $30.71M | – | – |
| Nonperforming loans, September 30, 2026other | $7.13M | decreased $8.7 million | – |
| Nonperforming assets as a % of total assets, September 30, 2026other | 0.20 % | – | – |
| ACL-loans as a % of nonperforming loans, September 30, 2026other | 430.65 % | – | – |
| Total assets, September 30, 2026GAAP | $3.56B | – | – |
| Total loans, September 30, 2026other | $2.98B | – | 9.7 % |
| Total deposits, September 30, 2026GAAP | $2.97B | – | 7.6 % |
| Cash and cash equivalents, September 30, 2026GAAP | $255.5M | – | – |
| Advances from the Federal Home Loan Bank, September 30, 2026GAAP | $ 125,000 | – | – |
| Subordinated debentures, September 30, 2026GAAP | $69.88M | – | – |
| Total shareholders' equity, September 30, 2026GAAP | $334.1M | – | – |
| Tangible common equity to tangible assets, September 30, 2026non-GAAP | 9.33 % | – | – |
| Fully diluted tangible book value per common share, September 30, 2026non-GAAP | $ 41.59 | – | – |
| Total capital to risk-weighted assets, September 30, 2026other | 12.67 % | – | – |
| Total common equity tier 1 capital to risk-weighted assets, September 30, 2026other | 11.64 % | – | – |
| Tier I Capital to Average Assets, September 30, 2026other | 10.25 % | – | – |
| Net interest income, nine months ended September 30, 2026GAAP | $87.76M | – | – |
| Total noninterest income, nine months ended September 30, 2026GAAP | $10.58M | – | – |
| Total noninterest expense, nine months ended September 30, 2026GAAP | $51.97M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $36.38M | – | – |
| Diluted earnings per common share, nine months ended September 30, 2026GAAP | $ 4.52 | – | – |
full-year 2026 outlook
- Operating expenses$65 to $67 million, excluding conversion costs
- NoteNet interest income of $119 to $121 million
- NoteNon-interest income of $14 to $15 million
- NoteLoan growth of 5% to 7%
Capital returns
- The Board of Directors declared a $0.20 per share cash dividend, payable November 20, 2026 to shareholders of record on November 9, 2026.
- Dividends per common share were $ 0.20 for the third quarter of 2026.
- Dividends paid were $4.7 million year-to-date as of September 30, 2026.
What drove it
- Higher interest income resulting from increased earning-asset yields and higher average earning-asset balances drove revenue growth.
- SBA loan sale gains contributed $2.8 million of the Company's $4.0 million in total noninterest income for the quarter ended September 30, 2026.
- The SBA Lending division delivered $30.1 million in originations in the third quarter of 2026, bringing year-to-date originations to $90.2 million.
- Nonperforming loans declined primarily due to the note sale of a suburban retail CRE loan in Westchester County, NY, that had been modified during the COVID-19 pandemic.
- Deposit mix changed as money market deposits increased and time deposits decreased compared with December 31, 2025.
Concerns
- Third-quarter results included $3.0 million of core conversion costs, primarily termination fees.
- The Company expects to incur additional core conversion-related costs in future quarters as implementation activities progress.
- Total noninterest expense was $ 19,829 in the third quarter of 2026, versus $ 15,255 in the prior quarter, reflecting core conversion costs and higher salaries and employee benefits related to talent investments.
- Advances from the Federal Home Loan Bank were $ 125,000 at September 30, 2026, compared with $ 30,000 at June 30, 2026.
What to watch
- Execution and additional costs associated with the core conversion initiative.
- Progress toward full-year 2026 net interest income guidance of $119 to $121 million and non-interest income guidance of $14 to $15 million.
- SBA loan sale gains and SBA Lending originations.
- Loan growth against the maintained outlook for 5% to 7% growth.
- Asset quality following the third-quarter decline in nonperforming loans and nonperforming assets.
Balance sheet and cash flow
- Assets totaled $3.6 billion at September 30, 2026, an increase of $195.4 million, or 5.8% compared to December 31, 2025.
- Gross loans totaled $3.0 billion at September 30, 2026, an increase of $142.6 million, or 5.0% compared to December 31, 2025.
- Deposits totaled $3.0 billion at September 30, 2026, an increase of $138.2 million, or 4.9% compared to December 31, 2025.
- Brokered deposits decreased $52.1 million or 9.3%, when compared to December 31, 2025.
- Cash and cash equivalents were $ 255,549 at September 30, 2026.
- Advances from the Federal Home Loan Bank were $ 125,000 and subordinated debentures were $ 69,882 at September 30, 2026.
- Operating cash flow and free cash flow were not reported.
Analysis
Bankwell reported record third-quarter earnings, with GAAP net income of $12.7 million and diluted earnings per common share of $1.58, compared with $12.4 million and $1.52 in the second quarter. Operating net income was $15.0 million and operating diluted EPS was $1.86 after excluding core conversion costs. The reported result included $3.0 million of core conversion costs, primarily termination fees, which raised total noninterest expense to $19.8 million from $15.3 million in the linked quarter.
Core revenue improved. Net interest income was $31.4 million compared with $29.5 million in the prior quarter, while total revenues were $35.3 million compared with $32.8 million. Management attributed the increase in revenue to higher earning-asset yields and higher average earning-asset balances. Net interest margin expanded 13 basis points to 3.71%, with management citing higher earning-asset yields and flat funding costs. Total noninterest income was $4.0 million, including $2.8 million of SBA loan sale gains.
Balance-sheet growth continued through the first nine months. Assets totaled $3.6 billion, gross loans totaled $3.0 billion, and deposits totaled $3.0 billion at September 30, 2026. Gross loans increased $142.6 million, or 5.0%, from December 31, 2025, while deposits increased $138.2 million, or 4.9%. Deposit composition shifted, with money market deposits increasing 23.1% year-to-date and time deposits declining 12.7% year-to-date. Shareholders' equity totaled $334.1 million, and tangible common equity to tangible assets was 9.33%.
Credit indicators strengthened materially in the quarter. Nonperforming loans decreased $8.7 million to $7.1 million, principally due to the sale of a modified suburban retail CRE loan. Nonperforming assets declined to 0.20% of total assets from 0.46% in the prior quarter. The Company reported net recoveries of $1.4 million and an ACL-Loans coverage ratio of 430.65% of nonperforming loans. Management stated that the Bank's regulatory capital ratios remained above the thresholds for well-capitalized institutions.
Management updated full-year 2026 guidance for net interest income to $119 to $121 million and non-interest income to $14 to $15 million, while maintaining loan growth guidance of 5% to 7% and non-interest expense guidance of $65 to $67 million excluding conversion costs. The principal execution item is the core conversion: management expects additional related costs in future quarters, although it stated that third-quarter termination-related costs are not expected to recur.
Management, verbatim
We delivered record earnings for the third quarter, with GAAP net income of $12.7 million, or $1.58 per share, despite absorbing $3.0 million of costs related to our core conversion.
Christopher R. Gruseke, Chief Executive Officer
Excluding these costs, operating net income was $15.0 million, or $1.86 per share, and our operating efficiency ratio was 47.5%.
Christopher R. Gruseke, Chief Executive Officer
We now expect net interest income of $119 to $121 million and non-interest income of $14 to $15 million, reflecting continued strength in our SBA platform.
Christopher R. Gruseke, Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Gross margin was not reported and is not applicable to the banking business.
- Forward revenue guidance was not reported.
- Forward gross-margin guidance was not reported.
- Forward tax-rate guidance was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Share repurchases were not reported.
- A formal business-segment revenue table was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Bankwell furnished its Q3 2026 results and a Regulation FD disclosure via SEC Form 8-K, including a dividend declaration and full-year outlook.
Ticker impact
Bankwell reported GAAP net income of $12.7M and EPS $1.58 for Q3, plus a $0.20/share Q4 dividend and updated full-year 2026 guidance.
Likely upward bias as investors price in stronger NII and SBA-driven non-interest income, tempered by awareness of ongoing core conversion costs.
The filing provides fresh, company-specific datapoints: Q3 GAAP results, dividend declaration, and explicit full-year 2026 guidance ranges tied to SBA strength and NII.
Market effects
Adds another datapoint on small-bank profitability drivers, including NIM expansion and SBA contribution to non-interest income.
Limited direct read-through beyond the regional community bank peer set.
Low; this is a single US small-cap bank earnings and guidance update.
Counterpoint
Core conversion costs were elevated in Q3 and additional costs are expected in future quarters, which could pressure operating metrics before benefits fully materialize.
Key entities
- issuerBankwell Financial Group, Inc.
Reported Q3 2026 GAAP net income of $12.7M, declared a $0.20/share Q4 dividend, and updated full-year 2026 guidance.
- programCore conversion initiative
Technology and operating infrastructure initiative with $3.0M Q3 costs, with additional costs expected in future quarters.
- business segmentSBA lending platform
Cited as a meaningful contributor to non-interest income, including SBA loan sale gains and originations.
