Bankwell Financial Group Reports $6.9 Million Net Income in Q1 2025

Bankwell Financial Group, Inc. reported its financial results for the first quarter of 2025, revealing a net income of $6.9 million, or $0.87 per diluted share, compared to $3.8 million, or $0.48 per diluted share, for the same period in 2024. This increase in profitability is attributed to a rise in revenues, which totaled $23.6 million, up from $22.1 million year-over-year. The growth in revenue was primarily driven by a decrease in interest expenses and an increase in service charges and fees, alongside higher interest and dividends on securities.

The company's total assets decreased to $3.2 billion as of March 31, 2025, down from $3.3 billion at the end of 2024. This decline was largely due to a reduction in gross loans, which fell to $2.6 billion, a decrease of $61 million or 2.3% from the previous quarter. Deposits also saw a slight decline, totaling $2.8 billion, down $37.1 million or 1.3% from December 31, 2024. The decrease in loans was primarily in the commercial real estate sector, which dropped by $88.2 million, while construction loans increased by $14.8 million.

In terms of operational metrics, the company reported a provision for credit losses of $0.5 million for the first quarter of 2025, significantly lower than the $3.7 million recorded in the same quarter of 2024. The allowance for credit losses on loans (ACL-Loans) stood at $29.5 million, representing 1.11% of total gross loans, compared to 1.07% at the end of 2024. The company also reported a decrease in nonaccrual loans, which totaled $26.4 million, down from $53.3 million at the end of the previous year.

Strategically, Bankwell Financial Group continues to focus on expanding its market reach while maintaining a disciplined risk management approach. The company operates primarily within a 100-mile radius of its branch network in Connecticut but is also pursuing commercial lending opportunities beyond this area. As of March 31, 2025, the company had 7,888,013 shares outstanding, reflecting a slight increase from the previous quarter, and it has continued its share repurchase program, buying back 29,924 shares at an average price of $30.46 per share during the quarter.

Looking ahead, Bankwell Financial Group remains optimistic about its growth prospects, supported by a strong capital position and a commitment to enhancing its service offerings. The company is well-capitalized, meeting all regulatory requirements, with a Common Equity Tier 1 capital ratio of 10.04% as of March 31, 2025. The management's focus on maintaining a robust balance sheet and effective risk management practices positions the company to navigate potential economic challenges while pursuing growth opportunities.