Bankwell Financial's Q3 profit rises on lower deposit costs

Bankwell Financial

23/10/2025 13:09

Corrects to remove negative sign in loan loss provision figure in Key Details table

Overview

Bankwell Financial Q3 revenue beats analyst expectations, driven by increased loan balances

Net income for Q3 rises to $10.1 mln from $9.1 mln in Q2

Company declares $0.20 per share cash dividend for Q4

Outlook

Bankwell Financial plans to provide 2026 guidance with year-end earnings release

Company sees positive balance sheet trends and reduced non-performing assets

Result Drivers

NET INTEREST MARGIN EXPANSION - Driven by favorable loan yields and lower deposit costs, NIM increased to 3.34%

SBA DIVISION GROWTH - Gains on SBA loan sales increased to $1.4 mln, with strong pricing and $21.8 mln in originations

EFFICIENCY IMPROVEMENT - Efficiency ratio improved to 51.4% due to better cost management

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$28.48 mln
$27.30 mln (3 Analysts)
Q3 EPS
$1.27
Q3 Net Income
$10.10 mln
Q3 Net Interest Income
$25.98 mln
Q3 Loan Loss Provision
$400,000
Q3 Net Interest Margin
3.34%


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 $45.00, about 5.2% above its October 21 closing price of $42.67

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

Press Release: ID:nBwb5TNna

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)