Form 8-K - Current report

Share Name	Share Symbol	Market	Type
Bankwell Financial Group Inc	NASDAQ:BWFG	NASDAQ	Common Stock

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	-0.47	-1.48%	31.18	22.99	50.12	32.00	31.01	31.70	20,751	22:30:00

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): October 28, 2024

Bankwell Financial Group, Inc.

(Exact name of registrant as specified in its charter)


Connecticut	001-36448	20-8251355
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

258 Elm Street

New Canaan, Connecticut 06840

(203) 652-0166

(Address of Principal Executive Officers and Telephone Number)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, no par value per share	BWFG	NASDAQ Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).


Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			☐


Item 2.02			Results of Operations and Financial Condition

			On October 28, 2024, Bankwell Financial Group, Inc., the holding company for Bankwell Bank, issued a press release describing its results of operations for the period ended September 30, 2024. A copy of the press release is included as Exhibit 99.1 to this current report on Form 8-K and is incorporated herein by reference.

			The information furnished under this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that section. The information shall not be deemed incorporated by reference into any other filing with the Securities and Exchange Commission made by the Company, regardless of any general incorporation language in such filing.

Item 7.01			Regulation FD Disclosure

			On October 28, 2024, Bankwell Financial Group, Inc., the holding company for Bankwell Bank, issued slide presentation material, which includes among other things, a review of financial results and trends through the period ended September 30, 2024. A copy of the material will also be available on the Company’s website, http://investor.mybankwell.com/CorporateProfile. A copy of the Presentation Material is included as Exhibit 99.2 to this current report on Form 8-K and is incorporated herein by reference.

			The information furnished under this Item 7.01, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that section. The information shall not be deemed incorporated by reference into any other filing with the Securities and Exchange Commission made by the Company, regardless of any general incorporation language in such filing.


Item 8.01			Other Events

			Quarterly Dividend Announcement On October 28, 2024, Bankwell Financial Group, Inc. (the Company), parent company of Bankwell Bank, announced that on October 23, 2024, its Board of Directors voted to pay a quarterly dividend in the amount of $0.20 per share on November 22, 2024 to all shareholders of record as of November 11, 2024. Stock Repurchase Plan On October 28, 2024, the Company announced that on October 23, 2024, its Board of Directors authorized a share repurchase plan. Under the terms of the share repurchase plan, the Company is authorized to buy back up to 250,000 shares of its outstanding common stock. The Company intends to accomplish the share repurchases through open market transactions, though the Company could accomplish repurchases through other means, such as privately negotiated transactions. The timing, price and volume of repurchases will be based on market conditions, relevant securities laws (such as 10b-18 and 10b5-1 rules under the Securities Exchange Act of 1934) and other factors. The share repurchase plan does not obligate the Company to acquire any particular amount of common stock, and it may be modified or suspended at any time at the Company's discretion. The Company expects to fund any repurchases from cash on hand. In connection with the authorization of the new plan, the Company terminated the existing plan (the "Prior Plan"), which was originally approved on December 19, 2018 and authorized the repurchase of 400,000 shares of the Company’s common stock. On October 27, 2021, the Company's Board of Directors voted to increase the number of shares authorized for repurchase under the Prior Plan by 200,000 shares (for a total of 600,000 shares of the Company's common stock). To date, the Company has purchased 535,802 shares of the Company’s common stock pursuant to the Prior Plan.

Item 9.01			Financial Statements and Exhibits
(a)			Not applicable.
(b)			Not applicable.
(c)			Not applicable.
(d)			Exhibits.


Exhibit Number			Description

99.1			Press Release Dated October 2 8 , 2024
99.2			Presentation Materials
104			Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			BANKWELL FINANCIAL GROUP, INC.
			Registrant



October 28, 2024			By: /s/ Courtney E. Sacchetti
			Courtney E. Sacchetti
			Executive Vice President
			and Chief Financial Officer

BANKWELL FINANCIAL GROUP REPORTS OPERATING RESULTS FOR THE THIRD QUARTER, DECLARES FOURTH QUARTER DIVIDEND, AND ANNOUNCES SHARE REPURCHASE PLAN

New Canaan, CT – October 28, 2024 – Bankwell Financial Group, Inc. (NASDAQ: BWFG), a leading commercial bank with a growing digital focus, reported GAAP net income of $1.9 million, or $0.24 per share for the third quarter of 2024, versus $1.1 million, or $0.14 per share, for the second quarter of 2024. The Company's Board of Directors declared a $0.20 per share cash dividend, payable November 22, 2024 to shareholders of record on November 11, 2024.

Third quarter of 2024 results include an $8.2 million previously disclosed charge-off taken against a $13.7 million office loan participation as a $0.79 drag to earnings per share. Pre-tax, pre-provision net revenue (PPNR) of $9.0 million, or $1.17 per share, fell 7% relative to the second quarter of 2024 at $9.7 million, or $1.25 per share.

On October 28, 2024, the Company announced that on October 23, 2024, its Board of Directors authorized a new share repurchase plan. Under the terms of the share repurchase plan, the Company is authorized to buy back up to 250,000 shares of its outstanding common stock. In connection with the authorization of the new plan, the Company terminated its existing plan, originally approved in 2018 and amended in 2021, pursuant to which the Company has purchased 532,802 shares of its common stock.

Discussion of Outlook; Bankwell Financial Group President and CEO, Christopher R. Gruseke:

"Although we were disappointed with the elevated charge-off in the third quarter, the Company’s go-forward outlook remains favorable. Our liability sensitive balance sheet leaves us well positioned for accelerating margin expansion in the coming quarters, and we believe that strategic investments in our commercial lending platform will help us diversify our assets and improve our profitability."

Key Points for Third Quarter and Bankwell’s Outlook

Brokered Deposits Decrease, Liability Sensitive Balance Sheet.

•Brokered deposits declined $24.2 million in the third quarter of 2024 and are down $168.5 million since December 31, 2023.

•Reported net interest margin was 2.72%, which included a -6 basis point impact as a result of charges associated with a single non-performing loan and fees associated with called brokered CDs.

•With $1.3 billion of time deposits maturing in the next 12 months at a weighted average rate of 4.89%, the Company anticipates an annualized reduction in funding costs by $3.35 million, given current pricing. This translates into approximately $0.33 incremental EPS, or approximately 11 basis points on net interest margin, given no further changes to Fed Funds and stable asset yields.

•Further, the Company anticipates $0.5 billion of loans to reprice or mature over the same period, which could further benefit net interest margin by an additional 15 to 20 basis points on an annualized basis.

NPL to be Sold, Residential Care Upgrades a Positive Sign.

•A $27.1 million multifamily commercial real estate loan was placed on nonperforming status as of September 30, 2024. As of October 28, 2024, the Company has a signed agreement for the sale of this loan at par value. As of September 30, 2024, this loan comprises 103 basis points of the 2.50% nonperforming loans as a percentage of total loans.

•Elsewhere, favorable macroeconomic trends were reflected in improved operating results among the Company's residential care borrowers. Specifically, during the quarter four relationships totaling $42 million were upgraded. The Company anticipates the positive trend to continue as both Medicaid reimbursement rates and operational costs normalize.

Ongoing Investments with Continued Focus on Efficiency.

•The Company continues to invest for future growth, with notable recent developments including a lending partnership with Lendio, the launch of Bankwell Direct, the launch of a new Small Business Administration (SBA) division, and hiring key leadership personnel.

•The Company continues to operate efficiently with a non-interest expense to average asset ratio of 1.62% for the quarter ended September 30, 2024.

Third Quarter 2024 Financial Highlights and Key Performance Indicators (KPIs):


	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Return on average assets(1)	0.24		%	0.14		%	0.47		%	1.03		%	1.19		%
Pre-tax, pre-provision net revenue return on average assets(1)	1.13		%	1.22		%	1.10		%	1.27		%	1.37		%
Return on average shareholders' equity(1)	2.83		%	1.65		%	5.59		%	12.82		%	15.19		%
Net interest margin(1)	2.72		%	2.75		%	2.71		%	2.81		%	2.85		%
Efficiency Ratio(1)(2)	58.8		%	55.9		%	60.3		%	55.0		%	52.0		%
Noninterest expense to average assets(1)	1.62		%	1.55		%	1.66		%	1.56		%	1.48		%
Net loan charge-offs as % of average loans(1)	0.56		%	0.01		%	0.11		%	0.01		%	—		%
Dividend payout(1)(3)	82.30		%	142.86		%	41.67		%	18.35		%	16.00		%
Fully diluted tangible book value per common share(1)	$	33.76		$	33.61		$	33.57		$	33.39		$	32.55
Total capital to risk-weighted assets(1)(4)	12.83		%	12.98		%	12.63		%	12.32		%	11.86		%
Total common equity tier 1 capital to risk-weighted assets(1)(4)	11.80		%	11.73		%	11.60		%	11.30		%	10.82		%
Tier I Capital to Average Assets(1)(4)	10.24		%	10.17		%	10.09		%	9.81		%	9.60		%
Tangible common equity to tangible assets(1)	8.40		%	8.42		%	8.42		%	8.19		%	7.86		%
Earnings per common share - diluted	$	0.24		$	0.14		$	0.48		$	1.09		$	1.25
Common shares issued and outstanding	7,858,573			7,866,499			7,908,180			7,882,616			7,841,616

(1) Non-GAAP Financial Measure, refer to the "Non-GAAP Financial Measures" and the "Reconciliation of GAAP to Non-GAAP Measures" sections of this document for additional detail.

(2) Efficiency ratio is defined as noninterest expense, less other real estate owned expenses and amortization of intangible assets, divided by our operating revenue, which is equal to net interest income plus noninterest income excluding gains and losses on sales of securities and gains and losses on other real estate owned. In our judgment, the adjustments made to operating revenue allow investors and analysts to better assess our operating expenses in relation to our core operating revenue by removing the volatility that is associated with certain one-time items and other discrete items that are unrelated to our core business.

(3) The dividend payout ratio is calculated by dividing dividends per share by earnings per share.

(4) Represents Bank ratios. Current period capital ratios are preliminary subject to finalization of the FDIC Call Report.

Pre-Tax, Pre-Provision Net Revenue(1) ("PPNR")

PPNR for the three and nine months ended September 30, 2024, were $9.0 million and $27.4 million, respectively, a decrease of 20.1% and 28.6%, respectively, from the $11.3 million and $38.4 million recognized in the three and nine months ended September 30, 2023, respectively.


	For the Quarter Ended										For the Nine Months Ended
(Dollars in thousands)	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		September 30, 2024		September 30, 2023
Net interest income	$	20,717	$	21,219	$	21,147	$	22,245	$	22,691	$	63,083	$	72,223
Total noninterest income	1,156		683		915		1,129		786		2,754		3,713
Total revenues	21,873		21,902		22,062		23,374		23,477		65,837		75,936
Total noninterest expense	12,865		12,245		13,297		12,864		12,205		38,407		37,537
PPNR	$	9,008	$	9,657	$	8,765	$	10,510	$	11,272	$	27,430	$	38,399

(1) Non-GAAP Financial Measure, refer to the "Non-GAAP Financial Measures" section of this document for additional detail.

•Revenues (net interest income plus noninterest income) for the quarter ended September 30, 2024 were $21.9 million, versus $23.5 million for the quarter ended September 30, 2023. The decrease in revenues for the quarter ended September 30, 2024 was attributable to an increase in interest expense on deposits. Revenues for the nine months ended September 30, 2024 were $65.8 million, versus $75.9 million for the nine months ended September 30, 2023. The decrease in revenues for the quarter ended September 30, 2024 was attributable to an increase in interest expense on deposits and lower gains from loan sales, partially offset by an increase in interest and fees on loans due to higher loan yields and prepayment fees.

•The net interest margin (fully taxable equivalent basis) for the quarters ended September 30, 2024 and September 30, 2023 was 2.72% and 2.85%, respectively. The decrease in the net interest margin was due to an increase in funding costs, partially offset by an increase in interest income on earning assets. For the quarter ended September 30, 2024, the net interest margin includes a -5 basis point unfavorable impact as a result of the $27.1 million commercial real estate loan being placed on non-performing status plus a -1 basis point unfavorable impact from one-time costs associated with Brokered CDs called during the quarter.

•Overall non-interest income of $1.2 million increased 69.3% when compared to the second quarter, primarily due to higher gains as a result of more SBA loan sales. Service charges increased when compared to the second quarter and continues to grow on a positive trend line.

•Total non-interest expense of $12.9 million increased 5% compared to the second quarter as the Company continues to invest in strategic initiatives.

Allowance for Credit Losses - Loans ("ACL-Loans")

The ACL-Loans was $27.8 million as of September 30, 2024 compared to $27.9 million as of December 31, 2023. The ACL-Loans as a percentage of total loans was 1.06% as of September 30, 2024 compared to 1.03% as of December 31, 2023.

Provision for credit losses was $6.3 million for the quarter ended September 30, 2024. The increase in the provision for credit losses for the quarter was primarily due to a charge-off of $8.2 million which previously did not have an associated specific reserve. The increase was partially offset by a $1.0 million recovery on a previously charged-off loan.

Total nonaccrual loans increased $9.3 million to $65.5 million as of September 30, 2024 when compared to the previous quarter. The increase was primarily due to a $27.1 million commercial real estate multifamily loan1. The increase was partially offset by two loans that were partially charged-off for a total of $15.4 million and two loans that were paid off totaling $4.7 million in the third quarter of 2024. Nonperforming assets as a percentage of total assets increased to 2.07% at September 30, 2024 from 1.53% at December 31, 2023.

1.As of October 28, 2024, the Company has a signed agreement for the sale of this loan at par value.

BANKWELL FINANCIAL GROUP, INC.

ASSET QUALITY (unaudited)

(Dollars in thousands)


	For the Quarter Ended
	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
ACL-Loans:
Balance at beginning of period	$	36,083	$	27,991	$	27,946	$	29,284	$	30,694
Charge-offs:
Residential real estate	—		(9)		(132)		—		—
Commercial real estate	(8,184)		(522)		(3,306)		(824)		—
Commercial business	(7,010)		—		(197)		—		—
Consumer	(17)		(12)		(49)		(15)		(31)
Construction	(616)		—		—		—		—
Total charge-offs	(15,827)		(543)		(3,684)		(839)		(31)
Recoveries:
Residential real estate	—		141		—		—		—
Commercial real estate	1,013		113		—		—		—
Commercial business	(34)		—		27		464		35
Consumer	1		13		4		3		19
Construction	—		—		—		—		—
Total recoveries	980		267		31		467		54
Net loan (charge-offs) recoveries	(14,847)		(276)		(3,653)		(372)		23
Provision (credit) for credit losses - loans	6,516		8,368		3,698		(966)		(1,433)
Balance at end of period	$	27,752	$	36,083	$	27,991	$	27,946	$	29,284


	As of
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Asset quality:
Nonaccrual loans
Residential real estate	$	1,316		$	1,339		$	1,237		$	1,386		$	1,408
Commercial real estate	46,360			28,088			19,083			23,009			1,898
Commercial business	9,101			17,396			16,841			15,430			7,352
Construction	8,766			9,382			9,382			9,382			9,382
Consumer	—			—			—			—			7,917
Total nonaccrual loans	65,543			56,205			46,543			49,207			27,957
Other real estate owned	—			—			—			—			—
Total nonperforming assets	$	65,543		$	56,205		$	46,543		$	49,207		$	27,957

Nonperforming loans as a % of total loans	2.50		%	2.12		%	1.74		%	1.81		%	1.01		%
Nonperforming assets as a % of total assets	2.07		%	1.79		%	1.48		%	1.53		%	0.86		%
ACL-loans as a % of total loans	1.06		%	1.36		%	1.04		%	1.03		%	1.06		%
ACL-loans as a % of nonperforming loans	42.34		%	64.20		%	60.14		%	56.79		%	104.75		%
Total past due loans to total loans	2.48		%	0.84		%	1.44		%	0.78		%	1.44		%

Financial Condition & Capital

Assets totaled $3.2 billion at September 30, 2024, a decrease of $54.4 million, or 1.7% compared to December 31, 2023. Gross loans totaled $2.6 billion at September 30, 2024, a decrease of $95.4 million, or 3.5% compared to December 31, 2023. Deposits totaled $2.7 billion at September 30, 2024, a decrease of $48.6 million, or 1.8% compared to December 31, 2023. Brokered deposits have decreased $168.5 million or 17.7%, when compared to December 31, 2023


Period End Loan Composition	September 30, 2024		June 30, 2024		December 31, 2023		Current QTD % Change		YTD % Change
Residential Real Estate	$	45,553	$	47,875	$	50,931	(4.9)	%	(10.6)	%
Commercial Real Estate(1)	1,887,942		1,912,701		1,947,648		(1.3)		(3.1)
Construction	160,292		150,259		183,414		6.7		(12.6)
Total Real Estate Loans	2,093,787		2,110,835		2,181,993		(0.8)		(4.0)

Commercial Business	490,292		503,444		500,569		(2.6)		(2.1)

Consumer	39,126		42,906		36,045		(8.8)		8.5
Total Loans	$	2,623,205	$	2,657,185	$	2,718,607	(1.3)	%	(3.5)	%

(1) Includes owner occupied commercial real estate of $0.7 billion at September 30, 2024, June 30, 2024, and December 31, 2023, respectively.


Period End Deposit Composition	September 30, 2024		June 30, 2024		December 31, 2023		Current QTD % Change		YTD % Change
Noninterest bearing demand	$	295,552	$	328,475	$	346,172	(10.0)	%	(14.6)	%
NOW	76,413		122,112		90,829		(37.4)		(15.9)
Money Market	840,234		825,599		887,352		1.8		(5.3)
Savings	87,212		91,870		97,331		(5.1)		(10.4)
Time	1,388,760		1,294,319		1,315,073		7.3		5.6
Total Deposits	$	2,688,171	$	2,662,375	$	2,736,757	1.0	%	(1.8)	%

Shareholders’ equity totaled $267.9 million as of September 30, 2024, an increase of $2.2 million compared to December 31, 2023, primarily a result of net income of $6.8 million for the nine months ended September 30, 2024. The increase was partially offset by dividends paid of $4.7 million.

The Company's capital position was generally stable during the third quarter, with total risk-based capital, common-equity tier 1 capital and leverage ratios at 12.83%, 11.80%, and 10.24%, respectively, at September 30, 2024. The Company repurchased 9,670 shares and 85,990 shares at weighted average prices of $23.86 and $24.82 per share for the quarter and nine months ended September 30, 2024.

We recommend reading this earnings release in conjunction with the Third Quarter 2024 Investor Presentation, located at http://investor.mybankwell.com/Presentations and included as an exhibit to our October 28, 2024 Current Report on Form 8-K.

Conference Call

Bankwell will host a conference call to discuss the Company’s financial results and business outlook on October 29, 2024, at 10:00 a.m. E.T. The call will be accessible by telephone and webcast using https://investor.mybankwell.com/news-market-data/event-calendar/default.aspx. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event.

About Bankwell Financial Group

Bankwell Financial Group, Inc. is the holding company for Bankwell Bank (“Bankwell”). Bankwell is a full-service Commercial Bank, established in 2013. Headquartered in New Canaan, CT, Bankwell serves customers nationwide, delivering unmatched accessibility, expertise, and responsiveness. Bankwell offers an array of commercial financing products, including Working Capital lines of credit, SBA loans, Acquisition loans, and Commercial mortgages, in addition to digital and physical treasury management and deposit services.

For more information about this press release, interested parties may contact Christopher R. Gruseke, President and Chief Executive Officer or Courtney E. Sacchetti, Executive Vice President and Chief Financial Officer of Bankwell Financial Group at (203) 652-0166 or at ir@mybankwell.com.

For more information, visit www.mybankwell.com.

This press release may contain certain forward-looking statements about the Company. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the banking industry or securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and its subsidiaries are engaged.

Non-GAAP Financial Measures

In addition to evaluating the Company's financial performance in accordance with U.S. generally accepted accounting principles ("GAAP"), management may evaluate certain non-GAAP financial measures, such as the efficiency ratio. A computation and reconciliation of certain non-GAAP financial measures used for these purposes is contained in the accompanying Reconciliation of GAAP to Non-GAAP Measures tables. We believe that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends and financial position. For example, the Company believes that the efficiency ratio is useful in the assessment of financial performance, including noninterest expense control. The Company believes that tangible common equity, tangible assets, tangible common equity to tangible assets, tangible common shareholders' equity, fully diluted tangible book value per common share, adjusted noninterest expense, operating revenue, efficiency ratio, average tangible common equity, annualized return on average tangible common equity, return on average assets, return on average shareholders' equity, pre-tax, pre-provision net revenue, net interest margin, net loan charge-offs as a percentage of average loans, pre-tax, pre-provision net revenue on average assets, and the dividend payout ratio are useful to evaluate the relative strength of the Company's performance and capital position. We utilize these measures for internal planning and forecasting purposes. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure.

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS (unaudited)

(Dollars in thousands)


	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
ASSETS
Cash and due from banks	$	275,829	$	234,277	$	245,043	$	267,521	$	256,973
Federal funds sold	15,508		17,103		2,584		1,636		1,122
Cash and cash equivalents	291,337		251,380		247,627		269,157		258,095

Investment securities
Marketable equity securities, at fair value	2,148		2,079		2,069		2,070		1,975
Available for sale investment securities, at fair value	108,866		107,635		108,417		109,736		97,907
Held to maturity investment securities, at amortized cost	34,886		28,286		15,739		15,817		15,885
Total investment securities	145,900		138,000		126,225		127,623		115,767
Loans receivable (net of ACL-Loans of $27,752, $36,083, $27,991, $27,946, and $29,284 at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively)	2,591,551		2,616,691		2,646,686		2,685,301		2,735,242

Accrued interest receivable	14,714		14,675		15,104		14,863		15,648
Federal Home Loan Bank stock, at cost	5,655		5,655		5,655		5,696		5,696
Premises and equipment, net	24,780		25,599		26,161		27,018		26,899
Bank-owned life insurance	52,443		52,097		51,764		51,435		51,119
Goodwill	2,589		2,589		2,589		2,589		2,589

Deferred income taxes, net	9,300		11,345		9,137		9,383		9,395
Other assets	22,811		23,623		24,326		22,417		29,326
Total assets	$	3,161,080	$	3,141,654	$	3,155,274	$	3,215,482	$	3,249,776

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits
Noninterest bearing deposits	$	293,195	$	328,475	$	376,248	$	346,172	$	345,433
Interest bearing deposits	2,394,976		2,333,900		2,297,274		2,390,585		2,423,193
Total deposits	2,688,171		2,662,375		2,673,522		2,736,757		2,768,626

Advances from the Federal Home Loan Bank	90,000		90,000		90,000		90,000		90,000
Subordinated debentures	69,389		69,328		69,266		69,205		69,143
Accrued expenses and other liabilities	45,594		52,975		54,454		53,768		64,145
Total liabilities	2,893,154		2,874,678		2,887,242		2,949,730		2,991,914

Shareholders’ equity
Common stock, no par value	118,429		118,037		118,401		118,247		117,181
Retained earnings	151,257		150,895		151,350		149,169		142,205
Accumulated other comprehensive (loss)	(1,760)		(1,956)		(1,719)		(1,664)		(1,524)
Total shareholders’ equity	267,926		266,976		268,032		265,752		257,862

Total liabilities and shareholders’ equity	$	3,161,080	$	3,141,654	$	3,155,274	$	3,215,482	$	3,249,776

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

(Dollars in thousands, except share data)


	For the Quarter Ended										For the Nine Months Ended
	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		September 30, 2024		September 30, 2023
Interest and dividend income
Interest and fees on loans	$	43,596	$	43,060	$	43,325	$	44,122	$	43,854	$	129,981	$	126,059
Interest and dividends on securities	1,390		1,190		1,130		1,108		1,016		3,710		3,018
Interest on cash and cash equivalents	3,205		3,429		3,826		4,164		3,393		10,460		9,983
Total interest and dividend income	48,191		47,679		48,281		49,394		48,263		144,151		139,060

Interest expense
Interest expense on deposits	25,579		24,677		25,362		25,307		23,789		75,618		61,599
Interest expense on borrowings	1,895		1,783		1,772		1,842		1,783		5,450		5,238
Total interest expense	27,474		26,460		27,134		27,149		25,572		81,068		66,837

Net interest income	20,717		21,219		21,147		22,245		22,691		63,083		72,223
Provision (credit) for credit losses	6,296		8,183		3,683		(960)		(1,579)		18,162		1,826
Net interest income after provision (credit) for credit losses	14,421		13,036		17,464		23,205		24,270		44,921		70,397

Noninterest income
Bank owned life insurance	346		333		329		316		303		1,008		876
Service charges and fees	575		495		304		688		294		1,374		941


Gains and fees from sales of loans	133		45		321		79		237		499		1,893
Other	102		(190)		(39)		46		(48)		(127)		3
Total noninterest income	1,156		683		915		1,129		786		2,754		3,713

Noninterest expense
Salaries and employee benefits	6,223		6,176		6,291		6,088		6,036		18,690		18,507
Occupancy and equipment	2,334		2,238		2,322		2,231		2,146		6,894		6,434
Professional services	1,142		989		1,065		1,033		491		3,196		2,505
Data processing	851		755		740		747		741		2,346		2,141
Director fees	292		306		900		605		362		1,498		1,207
FDIC insurance	853		705		930		1,026		1,026		2,488		3,138
Marketing	73		90		114		139		184		277		512

Other	1,097		986		935		995		1,219		3,018		3,093
Total noninterest expense	12,865		12,245		13,297		12,864		12,205		38,407		37,537

Income before income tax expense	2,712		1,474		5,082		11,470		12,851		9,268		36,573
Income tax expense	786		356		1,319		2,946		3,074		2,461		8,434
Net income	$	1,926	$	1,118	$	3,763	$	8,524	$	9,777	$	6,807	$	28,139

Earnings Per Common Share:
Basic	$	0.24	$	0.14	$	0.48	$	1.09	$	1.25	$	0.86	$	3.61
Diluted	$	0.24	$	0.14	$	0.48	$	1.09	$	1.25	$	0.86	$	3.58

Weighted Average Common Shares Outstanding:
Basic	7,715,040		7,747,675		7,663,521		7,603,938		7,598,230		7,708,768		7,582,272
Diluted	7,720,895		7,723,888		7,687,679		7,650,451		7,633,934		7,731,454		7,646,837
Dividends per common share	$	0.20	$	0.20	$	0.20	$	0.20	$	0.20	$	0.60	$	0.60

BANKWELL FINANCIAL GROUP, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited)

(Dollars in thousands, except share data)


	As of
Computation of Tangible Common Equity to Tangible Assets	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Total Equity	$	267,926		$	266,976		$	268,032		$	265,752		$	257,862
Less:
Goodwill	2,589			2,589			2,589			2,589			2,589
Other intangibles	—			—			—			—			—
Tangible Common Equity	$	265,337		$	264,387		$	265,443		$	263,163		$	255,273

Total Assets	$	3,161,080		$	3,141,654		$	3,155,274		$	3,215,482		$	3,249,776
Less:
Goodwill	2,589			2,589			2,589			2,589			2,589
Other intangibles	—			—			—			—			—
Tangible Assets	$	3,158,491		$	3,139,065		$	3,152,685		$	3,212,893		$	3,247,187

Tangible Common Equity to Tangible Assets	8.40		%	8.42		%	8.42		%	8.19		%	7.86		%


	As of
Computation of Fully Diluted Tangible Book Value per Common Share	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Total shareholders' equity	$	267,926	$	266,976	$	268,032	$	265,752	$	257,862
Less:
Preferred stock	—		—		—		—		—
Common shareholders' equity	$	267,926	$	266,976	$	268,032	$	265,752	$	257,862
Less:
Goodwill	2,589		2,589		2,589		2,589		2,589
Other intangibles	—		—		—		—		—
Tangible common shareholders' equity	$	265,337	$	264,387	$	265,443	$	263,163	$	255,273

Common shares issued and outstanding	7,858,573		7,866,499		7,908,180		7,882,616		7,841,616







Fully Diluted Tangible Book Value per Common Share	$	33.76	$	33.61	$	33.57	$	33.39	$	32.55

BANKWELL FINANCIAL GROUP, INC.

NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - QTD (unaudited)

(Dollars in thousands)


	For the Quarter Ended
	September 30, 2024						September 30, 2023
	Average Balance		Interest		Yield/ Rate (4)		Average Balance		Interest		Yield/ Rate (4)
Assets:
Cash and Fed funds sold	$	253,664	$	3,205	5.03	%	$	265,115	$	3,393	5.08	%
Securities(1)	147,431		1,390		3.78		127,229		953		3.00
Loans:
Commercial real estate	1,905,506		28,288		5.81		1,943,725		28,140		5.67
Residential real estate	47,481		736		6.20		53,966		671		4.97
Construction	156,273		3,070		7.69		209,154		3,908		7.31
Commercial business	512,507		10,783		8.23		539,185		10,394		7.54
Consumer	41,845		719		6.84		44,020		741		6.66
Total loans	2,663,612		43,596		6.40		2,790,050		43,854		6.15
Federal Home Loan Bank stock	5,655		122		8.32		5,696		115		8.13
Total earning assets	3,070,362		$	48,313	6.16	%	3,188,090		$	48,315	5.93	%
Other assets	90,410						78,089
Total assets	$	3,160,772					$	3,266,179

Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW	$	94,958	$	45	0.18	%	$	102,149	$	47	0.18	%
Money market	832,430		8,597		4.11		922,036		9,064		3.90
Savings	89,463		691		3.07		105,366		817		3.08
Time	1,347,857		16,246		4.79		1,322,074		13,861		4.16
Total interest bearing deposits	2,364,708		25,579		4.30		2,451,625		23,789		3.85
Borrowed Money	159,349		1,895		4.73		159,103		1,783		4.39
Total interest bearing liabilities	2,524,057		$	27,474	4.33	%	2,610,728		$	25,572	3.89	%
Noninterest bearing deposits	303,213						345,988
Other liabilities	62,602						54,136
Total liabilities	2,889,872						3,010,852
Shareholders' equity	270,900						255,327
Total liabilities and shareholders' equity	$	3,160,772					$	3,266,179
Net interest income(2)			$	20,839					$	22,743
Interest rate spread					1.83	%					2.04	%
Net interest margin(3)					2.72	%					2.85	%

(1)Average balances and yields for securities are based on amortized cost.

(2)The adjustment for securities and loans taxable equivalency amounted to $122 thousand and $52 thousand for the quarters ended September 30, 2024 and 2023, respectively.

(3)Annualized net interest income as a percentage of earning assets.

(4)Yields are calculated using the contractual day count convention for each respective product type.

BANKWELL FINANCIAL GROUP, INC.

NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - YTD (unaudited)

(Dollars in thousands)


	For the Nine Months Ended
	September 30, 2024						September 30, 2023
	Average Balance		Interest		Yield/ Rate (4)		Average Balance		Interest		Yield/ Rate (4)
Assets:
Cash and Fed funds sold	$	273,138	$	10,460	5.12	%	$	281,033	$	9,983	4.75	%
Securities(1)	139,871		3,592		3.42		128,554		2,864		2.97
Loans:
Commercial real estate	1,909,390		84,582		5.82		1,932,549		79,958		5.46
Residential real estate	48,912		2,226		6.07		56,798		1,957		4.59
Construction	158,884		8,913		7.37		194,396		10,582		7.18
Commercial business	517,880		32,097		8.14		546,329		32,073		7.74
Consumer	41,383		2,162		6.98		30,571		1,489		6.51
Total loans	2,676,449		129,980		6.38		2,760,643		126,059		6.02
Federal Home Loan Bank stock	5,670		358		8.43		5,527		308		7.46
Total earning assets	3,095,128		$	144,390	6.13	%	3,175,757		$	139,214	5.78	%
Other assets	92,249						66,342
Total assets	$	3,187,377					$	3,242,099

Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW	$	97,970	$	133	0.18	%	$	97,741	$	127	0.17	%
Money market	849,860		26,294		4.13		910,840		23,532		3.45
Savings	91,135		2,093		3.07		117,984		2,404		2.72
Time	1,319,031		47,097		4.77		1,291,124		35,536		3.68
Total interest bearing deposits	2,357,996		75,617		4.28		2,417,689		61,599		3.41
Borrowed Money	159,288		5,450		4.57		161,166		5,238		4.29
Total interest bearing liabilities	2,517,284		$	81,067	4.30	%	2,578,855		$	66,837	3.47	%
Noninterest bearing deposits	336,129						374,943
Other liabilities	62,631						40,192
Total liabilities	2,916,044						2,993,990
Shareholders' equity	271,333						248,109
Total liabilities and shareholders' equity	$	3,187,377					$	3,242,099
Net interest income(2)			$	63,323					$	72,377
Interest rate spread					1.83	%					2.31	%
Net interest margin(3)					2.73	%					3.04	%

(1)Average balances and yields for securities are based on amortized cost.

(2)The adjustment for securities and loans taxable equivalency amounted to $240 thousand and $154 thousand for the nine months ended September 30, 2024 and 2023, respectively.

(3)Annualized net interest income as a percentage of earning assets.

(4)Yields are calculated using the contractual day count convention for each respective product type.

October 28, 2024 Third Quarter 2024 Investor Presentation

Important note regarding forward-looking statements: Statements made in this presentation which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management’s plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Such forward-looking statements may be identified by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “estimate,” “should,” “intend,” "target,” “outlook,” “project,” “guidance,” “forecast,” or similar expressions. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements. Factors which may cause actual results to differ materially from those contained in such forward-looking statements include those identified in the Company’s most recent Form 10-K and subsequent Form 10-Qs and other SEC filings, and such factors are incorporated herein by reference. Trademarks: All trademarks, service marks, and trade names referenced in this material are official trademarks and the property of their respective owners. Presentation: Within the charts and tables presented, certain segments, columns and rows may not sum to totals shown due to rounding. Non-GAAP Measures: This presentation includes certain non-GAAP financial measures. These non-GAAP measures are provided in addition to, and not as substitutes for, measures of our financial performance determined in accordance with GAAP. Our calculation of these non-GAAP measures may not be comparable to similarly titled measures of other companies due to potential differences between companies in the method of calculation. As a result, the use of these non-GAAP measures has limitations and should not be considered superior to, in isolation from, or as a substitute for, related GAAP measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found at the end of this presentation. Forward Looking Statement 2

Third Quarter 2024 Results 3 Reduced brokered deposit balances by $24.2 million LQ Reported net interest margin of 2.72%, down -3 bps LQ, future margin expansion still expected Continued progress on strategic initiatives in pipeline Strong growth in Bankwell Direct deposit channel, up $85 million LQ $8.2 million charge off on single CRE Office loan; 8k filed October 11, 2024 Capital build in consolidated CET1; modest buy backs

Third Quarter 2024 Financial Summary 4 EPS PPNR Loans Deposits Capital • Fully diluted EPS of $0.24 includes $0.79 from $8.2 million charge off • Lower EPS versus PYQ a function of higher provision and lower margin • PPNR of $9.0 million, or $1.17 per share, declined -7% LQ • Net interest income of $20.7 adversely impacted by non-accrual loan and calling costs on brokered CDs, minimal benefit of deposit repricing during quarter • Non-interest expense rose 5% LQ, largely driven by investment in strategic initiatives • Loan balances fell $34 million LQ due to prepayments and charge offs; originations remain strong at ~$140 million in the quarter • Provision of $6.3 million included $8.2 million charge off on CRE Office Loan • Deposits increased $25.8 million, brokered deposits fell $24.2 million (both LQ) • Loan to deposit ratio remains stable at 97.4% as asset base relatively flat • Tangible book value of $33.76, up $0.15 versus LQ and up 4% versus PYQ • Consolidated CET1 ratio grew to 9.71%; Bank Total Capital ratio ended at 12.83%1 1 Estimates, pending FDIC call report filing.

Third Quarter 2024 GAAP Results 5 Bankwell Financial Group, Inc. ($ in millions, except per share data) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Net Interest Income $ 20.7 $ 21.2 $ 21.1 $ 22.2 $ 22.7 $ 24.0 $ 25.5 $ 26.8 $ 24.6 Provision for Credit Losses 6.3 8.2 3.7 (1.0) (1.6) 2.6 0.8 4.3 2.4 Total Noninterest Income 1.2 0.7 0.9 1.1 0.8 1.4 1.5 0.5 0.4 Total Revenue 21.9 21.9 22.1 23.4 23.5 25.4 27.1 27.3 25.0 Total Noninterest Expenses 12.9 12.2 13.3 12.9 12.2 12.6 12.7 12.5 11.0 Income before Taxes 2.7 1.5 5.1 11.5 12.9 10.2 13.6 10.6 11.6 Net Income 1.9 1.1 3.8 8.5 9.8 8.0 10.4 8.0 9.2 Diluted Earnings Per Share 0.24 0.14 0.48 1.09 1.25 1.02 1.33 1.04 1.18 Total Assets 3,161.1 3,141.7 3,155.3 3,215.5 3,249.8 3,252.7 3,252.3 3,252.4 2,723.0 Gross Loans Receivable (ex. HFS) 2,619.3 2,652.8 2,674.7 2,713.2 2,764.5 2,767.3 2,752.5 2,668.8 2,281.6 Allowance for Credit Losses on Loans & Leases (27.8) (36.1) (28.0) (27.9) (29.3) (30.7) (28.0) (22.4) (18.2) All Other Assets 514.0 452.8 452.6 474.3 456.0 454.7 471.8 561.2 423.2 Total Liabilities 2,893.2 2,874.7 2,887.2 2,949.7 2,991.9 3,003.9 3,010.0 3,014.0 2,491.5 Total Deposits 2,688.2 2,662.4 2,673.5 2,736.8 2,768.6 2,788.9 2,798.3 2,800.8 2,286.7 Borrowings 159.4 159.3 159.3 159.2 159.1 159.1 159.0 159.0 158.9 Other Liabilities 45.6 53.0 54.5 53.8 64.1 55.9 52.7 54.2 45.9 Total Shareholders’ Equity 267.9 267.0 268.0 265.8 257.9 248.8 242.3 238.5 231.5 Net Interest Margin 2.72% 2.75% 2.71% 2.81% 2.85% 3.07% 3.24% 3.70% 4.12% PPNR ROAA 1.13% 1.22% 1.10% 1.27% 1.37% 1.58% 1.80% 1.98% 2.23% Effective Tax Rate 29% 24% 26% 26% 24% 22% 23% 24% 21% Noninterest Expense to Average Assets 1.62% 1.55% 1.66% 1.56% 1.48% 1.56% 1.59% 1.66% 1.76%

Maintaining our Strong Balance Sheet 6 $1,115 $566 $291 $111 Liquidity Uninsured Deposits 2.7X Liquidity Coverage $1,517 Unencumbered Securities Unencumbered Cash Borrowing Capacity1 1 Bank lines, including FHLB & FRB 2 TCE/TA consolidated ratio; all others Bank ratios. Regulatory ratios are estimates, pending FDIC call report filing. • $2,122 million total insured deposits includes: ‒ $2,006 million FDIC-insured deposits ‒ $116 million deposits secured by FHLB LOCs (municipal deposits) • 12.6% liquidity on balance sheet (Cash & Securities) • Stable insured deposit base • Additional 3Q24 ratios: ‒ 382% CRE Concentration Ratio ‒ 45% Construction Concentration Ratio • 85,990 shares repurchased year to date at an average price of $24.82 ‒ New 250,000 share repurchase plan authorized Abundant Excess Liquidity Building Excess Capital 11.80% 10.24% 12.83% 8.40% CET1 Leverage Total Risk Based TCE / TA Well Above Capital Minimums Minimum + buffer 2 Dollars in millions

Reduced Reliance on Brokered Deposits • Brokered deposit balances have fallen $168 million in 2024, with total deposits stable between approximately $2.7 and $2.8 billion • Notable growth in Bankwell Direct deposits (3Q24 launch); up $85 million LQ, to $97 million $1,774 $1,772 $1,820 $1,817 $1,785 $1,842 $1,855 $1,905 $1,027 $1,027 $969 $951 $952 $832 $808 $783 $2,801 $2,798 $2,789 $2,769 $2,737 $2,674 $2,662 $2,688 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Brokered Deposits Peaked in 4Q22 Non-Brokered Brokered Dollars in millions 7

Well Positioned Balance Sheet For Lower Rates • Liability sensitive, with $1.3 billion of time deposits maturing in next twelve months: ‒ $656 million Retail time repricing an average ~29 basis points lower based on current rates; annualized savings of $1.85 million of interest expense ‒ $639 million Brokered time repricing an average ~23 basis points lower based on current rates; annualized savings of $1.50 million of interest expense • A total $3.35 million annualized savings is ~$0.33 benefit to EPS and 10+ basis points on Net interest margin, assuming no further movement in Fed Funds and stable asset yields Maturity Quarter Balance Maturity Rate Current Rate V 4Q24 $206 5.20% 4.80% -0.40% 1Q25 $277 5.18% 4.80% -0.38% 2Q25 $110 4.85% 4.80% -0.05% 3Q25 $63 4.70% 4.80% 0.10% Total Retail $656 5.09% 4.80% -0.29% Dollars in millions 8 Maturity Quarter Balance Maturity Rate Current Rate V 4Q24 $229 4.31% 4.40% 0.09% 1Q25 $135 5.28% 4.50% -0.78% 2Q25 $105 4.88% 4.50% -0.38% 3Q25 $170 4.64% 4.50% -0.14% Total Brokered $639 4.69% 4.46% -0.23% Retail Time Deposits Brokered Time Deposits 1 Includes $85 million called in September 2024 with a settle date in October 2024; full term maturity dates were in Apr-25 and May-25 1

Managing CRE Concentration Lower • No single relationship greater than 4% • Expansion into Residential Care diversifying loan portfolio Dollars in millions $1,046 $1,224 $1,228 $1,204 $310 $697 $720 $684$351 $522 $501 $491 $98 $155 $183 $160 $89 $77 $87 $84 $1,895 $2,675 $2,719 $2,623 454% 425% 397% 382% 300% 320% 340% 360% 380% 400% 420% 440% 460% 480% 500% - 500 1,000 1,500 2,000 2,500 4Q21 4Q22 4Q23 3Q24 CRE Investor CRE Owner Occupied C&I Construction Residential / Other CRE Concentration 9

Credit Trends 3Q23 4Q23 1Q24 2Q24 3Q24 Risk Rating Balance % Balance % Balance % Balance % Balance % 1-5 “Pass” $2,694 97.2% $2,570 94.5% $2,527 94.3% $2,497 94.0% $2,458 93.7% 6 “Special Mention” $22 0.8% $67 2.5% $72 2.7% $71 2.7% $97 3.7% 7 “Substandard” $54 2.0% $76 2.8% $68 2.5% $80 3.0% $67 2.5% 8 “Doubtful” $0 0.0% $6 0.2% $13 0.5% $8 0.3% $1 0.1% Total Gross Loans $2,770 $2,719 $2,680 $2,657 $2,623 Non-performing Loans $28.0 $49.2 $46.5 $56.2 $65.5 % of Total Loans 1.01% 1.81% 1.74% 2.12% 2.50% $29.3 $27.9 $28.0 $36.1 $27.8 1.06% 1.03% 1.04% 1.36% 1.06% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% $0 $5 $10 $15 $20 $25 $30 $35 3Q23 4Q23 1Q24 2Q24 3Q24 Allowance for Credit Losses (ACL) Allowance for credit losses ACL / Loans 3Q24 net charge offs include: • $8.2 million CRE Office loan • $7.0 million C&I loan (previously reserved) • $0.6 million Construction loan (previously reserved) • ($1.0) million recovery on sale of CRE Office loan (charged off $2.8 million in 1Q24) Dollars in millions 10 1 1 As of October 28, 2024, the Company has a signed agreement for the sale of the $27 million CRE-multifamily loan at par value. On a pro-forma basis, non-performing loan balance excluding the CRE-multifamily loan is $38.4 million or 1.47% non-performing loans as a % of total loans ($0.02) $0.4 $3.7 $0.3 $14.8 3Q23 4Q23 1Q24 2Q24 3Q24 Net Charge Offs (Recoveries) 1

Criticized and Classified Loans • $95 million of Performing Criticized and Classified Loans down $8 million LQ, with improved performance in Residential Care borrowers ‒ 2 Special Mention (“6”) relationships upgraded to “Pass” in CQ, totaling $14 million ‒ 2 Substandard (“7”) relationships upgraded to Special Mention (“6”) rating in CQ, totaling $28 million • Total Criticized and Classified Loans up $5 million LQ, including downgrade of a $27 million CRE- multifamily loan (RR7, non-performing) ‒ As of October 28, 2024, the Company has a signed agreement for the sale of the $27 million CRE- multifamily loan at par value. ‒ Excluding CRE-multifamily loan, Criticized and Classified Loans down $22 million LQ Risk Rating Performing CQ LQ V 6 Yes $88 $69 $20 7 Yes -- $28 ($28) Total $88 $97 ($8) Risk Rating Performing CRE C&I Construction 1-4 Family Residential Total 6 Yes $87 $9 $0 $0 $97 7 Yes $0 $0 $0 $2 $3 7 No $45 $9 $9 $1 $64 8 No $1 $0 $0 $0 $1 Total $133 $19 $9 $4 $165 Dollars in millions LQ $71 $33 $48 $8 $160 Residential Care Criticized & Classified 11

CRE Office Portfolio1 1 Includes Owner Occupied CRE 12 Geography Dollars in millions CT - Fairfield County $49.3 CT - All Other $12.2 NY - Westchester County $10.3 NY - Brooklyn $3.0 NJ $29.6 TX $28.5 MS $17.7 GA $12.3 FL $2.2 CA $0.9 Composition $166 million Office exposure 6% of total loan portfolio • 48 loans with $3.5 million average balance • $5.5 million loan on a Class A suburban NJ office park with $8.2 million charge off in 3Q24 • 63% located in Bankwell’s primary market ‒ Out of primary market loans are generally either GSA-leased, credit tenants, or owner- occupied • $117 million have personal recourse to high-net- worth guarantors • $49 million have no recourse ‒ $22 million owner occupied ‒ $20 million GSA / credit-tenant ‒ $7 million remaining; 2 loans • ~57% of loan balances maturing in 4Q24 – 2025 Maturities Year Balance Count 2024 $46.4 6 2025 $48.5 13 2026 $14.9 6 2027+ $56.3 23 Total $166.1 48

Bankwell Strategic Update 13

14 Strategic Themes  Embrace Innovation  Invest in Risk Management  Elite Customer Experience  Specialized Lending Verticals

How Residential Care Lending Works 15 HNW, Experienced Sponsor Finds Skilled Nursing Facility (SNF) to Purchase Bankwell Approves Loan Refinance Bridge to HUD Loan  Sends Bankwell underwriting details, bank issues term sheet  Bank underwrites both SNF and Sponsor business portfolio and personal wherewithal  Bridge to HUD mortgage and HUD compliant working capital line to support accounts receivable  Sponsor opens all depository accounts for SNF at Bankwell (typically equals one- third of loan amounts)  Sponsor improves SNF performance over 12-36 months  Bankwell earns an exit fee when SNF refinances to long- term HUD loans  Line of credit, deposit accounts, and treasury management fees stay at Bankwell

16 $230 $657 $693 $717 5.08% 6.66% 7.15% 7.19% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% $0 $100 $200 $300 $400 $500 $600 $700 $800 2021 2022 2023 3Q24 Loan Balances $ in millions Balance Yield Residential Care Lending A highly efficient, differentiated platform with off-balance sheet growth opportunities  Portfolio is over a third self-funded as of 3Q24  Zero Charge-offs since portfolio’s inception  Average yield on new originations in 3Q24 was 8.50%  Total cost of funds of 2.15%  Off-balance sheet growth opportunities  Significant growth opportunities in HUD and loan sale fees

Small Business; Last Unclaimed Segment 17  Bankwell has been originating SBA 7(a) loans 10+ years  Preferred lender program (“PLP”) member  Recently appointed new leadership, with plans to add additional BDOs  Liquid secondary market, balance sheet light  Utilizing technology and partnerships to create an unfair advantage  Significant fee growth opportunity

Utilizing Innovation + Talent to Differentiate 18 Pivotal moment for technology and banking Embrace innovation and technology Talent is key differentiator Risk Management culture Be nimble, be flexible Pilots Prioritize the Client Do more with less

19 Bankwell is On the Move… Bankwell Brand Refresh Launched September 2024

Bankwell Direct Pilot; Case Study 20 Bankwell Direct Digital Pilot Successfully Launched in Third Quarter1 11 bps marketing costs 3 bps technology costs 2 bps support costs $126 million CD deposits $60K average CD Balance 1 Interest rates on October 28, 2024. 2As of October 25, 2024 . 2

Small Business Pilots; New Products with Broad Audiences 21  Connecticut Growth Loan Product; five-minute application, closes-up to same day. Launched in August 2024  Lendio Partnership (Launched - September 2024)  Spire, Business Banking Digital Product Suite (Launched – October 2024

Dedicated to making a difference. 22 Financial Outlook Stable total assets near-term Continued NIM expansion  Improved credit outlook Additional reductions in brokered deposits Growing regulatory capital Unchanged focus on efficiency

23 Questions?

Appendix 24

Average Deposits & NIM; Recent Trends Dollars in millions 25 $2,452 $2,430 $2,386 $2,323 $2,365 $346 $351 $337 $368 $303 $2,798 $2,781 $2,723 $2,692 $2,668 3.85% 4.13% 4.28% 4.27% 4.30% 3.37% 3.61% 3.75% 3.69% 3.81% 2.85% 2.81% 2.71% 2.75% 2.72% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 3Q23 4Q23 1Q24 2Q24 3Q24 Average Interest Bearing Average Non-Interest Bearing IB Deposit Cost Total Deposit Cost NIM

Loan Composition Dollars in millions Total Loan Portfolio = $2,623 million Favorable long-term trends in Investor CREResidential 1.7% C&I 18.7% CRE Owner Occupied 26.1% CRE Investor 45.9% Commercial Const. 6.1% Other 1.5% 60.4% 55.2% 45.8% 45.2% 45.9% 27.3% 34.9% 45.5% 44.9% 44.8% 4Q20 4Q21 4Q22 4Q23 3Q24 CRE Investor CRE O/O + C&I 26

Loan Yields Dollars in millions 27 $1,626 $1,895 $2,675 $2,719 $2,623 4.18% 4.30% 5.56% 5.99% 6.08% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4Q20 4Q21 4Q22 4Q23 3Q24 Loan Balance Portfolio Loan Yield Loan portfolio yields increased 190 bps since 2020 1 September 2024 Yield2 by Vintage 1 Weighted average yield based on active loans as of each date, an “exit" rate 2 Weighted average yield based on active loans as of 9-30-2024, an “exit" rate 73% of balances are 2021-2024 vintages Year Maturity Rate Reset Total % Total Loans 2024 $169 $6 $175 7% 2025 $618 $62 $679 26% 2026 $216 $48 $263 10% 2027+ $849 $94 $944 36% Total $1,851 $210 $2,061 Loan Maturities & Contractual Repricing Excluding floating rate loans 5.26% Pre 2021 5.81% 2021 6.40% 2022 7.64% 2023 8.07% 2024

CRE Loan Portfolio1 • 64% Non-Owner Occupied • 61% weighted average LTV2 • 68% of loan balances have recourse Dollars in millions Residential Care 33% Retail 20% Multifamily 15% Office 9%Industrial Warehouse 7% Mixed Use 5% Medical Office 5% 1-4 Family Investment 3% All Other 3% Property Type Investor Owner Occupied Total Residential Care $31 $365 $396 Retail $112 $5 $117 Office $84 $10 $94 Multifamily $49 $0 $49 All Other $96 $16 $111 Total $372 $396 $768 Loans Maturing or Repricing in 2024 – 2025 3 Excluding floating rate loans Total CRE Portfolio = $1,887 million By Property Type 1 Includes Owner Occupied CRE, does not include Construction 2 LTVs based on original LTV values, at origination 3 Loans subject to repricing generally have a floor of not less than the original rate 28

C&I Loan Portfolio 29 By Industry Type Total Portfolio = $492 million Health Care & Social Assistance 39% Insurance (Primarily Brokers) 22% Finance 13% Real Estate and Rental/Leasing 9% Admin & Support, Waste Mgmt, Remediation Svcs 4%Retail Trade 3% Arts, Entertainment & Recreation 2% Manufacturing 2% Other 6% • 98% of C&I portfolio has recourse • 97% of Healthcare loans have recourse – Primarily consists of working capital lines secured by government accounts receivable • Insurance lending primarily to brokers of home and auto insurance

Combined Healthcare Dollars in millions 30 Skilled Nursing Facilities 77% Assisted Living 14% Recovery 5% Other 4% $791 million combined Healthcare portfolio • Consists primarily of skilled nursing facilities located across the US • Healthcare lending team has more than 15 years of industry experience • High touch service model attracts desirable ultra-high net worth Healthcare borrowers • 100% of Skilled Nursing Lending has recourse • Focused on originating Healthcare loans in the most desirable states with: – Higher average occupancy – Low denial of payment rates for Medicaid – Strong senior demographic trends – Certificate of need programs 1 Healthcare Portfolio Composition CRE Skilled Nursing Facility By State FL 50% OH 16% NY 10% NJ 4% AL 2% IA 2% TN 2% IL 2% All Other 11%

3Q24 Non-Performing Loans Segment Balance % Total Loans 3Q24 Activity (See next slide for additional details) Loan 1 CRE - Multifamily $27.1 1.03% • Downgraded to Substandard (RR7), non-performing • As of October 28, 2024, signed agreement for sale at par value Loan 2 CRE - Retail $9.7 0.37% Loan 3 Construction $8.8 0.33% • $0.6 million charged off (previously reserved) Loan 4 CRE - Office $5.5 0.21% • $8.2 million charged off (8K filed on October 11, 2024) Loan 5 C&I $1.7 0.06% • $7.0 million charged off (previously reserved) Subtotal $52.7 2.01% SBA Guaranteed Balances $6.4 0.24% • $1.7 million SBA guarantee received All Other $6.4 0.25% Total $65.5 2.50% Dollars in millions • All non-performing loans individually evaluated for impairment • Balances charged off or specifically reserved, as appropriate 3Q24 Activity • $3.0 million CRE – Office loan in suburban CT paid off; $1.0 million recovery ($2.8 million charged off in 1Q24) • Remaining NPLs comprised of: 31

3Q24 Non-Performing Loans Details 32 Segment Balance % Total Loans Loan 1 CRE - Multifamily $27.1 1.03% • CRE Multifamily property in Hartford County, CT • As of October 28, 2024, signed agreement for sale at par value Loan 2 CRE - Retail $9.7 0.37% • Suburban retail loan in Westchester County, NY modified during COVID • Borrower paying according to terms of restructure • 1Q25 maturity • $4.5 million charged off, life-to-date Loan 3 Construction $8.8 0.33% • Construction loan in Williamsburg, Brooklyn • 70% completed; multi-family / mixed use • Borrower, a single-asset LLC, in bankruptcy • Full recourse to 3 high-net-worth guarantors ‒ Guarantor litigation in process • $0.6 million charge off in 3Q24 (previously reserved) Loan 4 CRE - Office $5.5 0.21% • Class A suburban NJ office park • Bankwell 17% participant in $84 million multi-bank club deal • 80% occupied; 40% recourse • 1Q25 maturity • $8.2 million charge off in 3Q24 (8K filed on October 11, 2024) Loan 5 C&I $1.7 0.06% • Senior secured tranche of a $28 million financing to support a sponsor-owned pediatric dental practice • Entity filed bankruptcy in Florida • Bank working to liquidate collateral • $7.0 million charge off in 3Q24 (previously reserved)

Bankwell Financial Group (Nasdaq: BWFG) $3.2B Total Assets $2.6B Loans $0.27B Equity $2.7B Deposits 1.62% Non-interest Exp / Assets ~140 Employees 8.40% TCE Ratio 9.71% CET1 Ratio C&I & CREOO 45% CRE Inv 46% All Other 9% Loans Core 63% Time > $250k 8% Brokered 29% Deposits 33 1 1 Estimate, pending FDIC call report filing.

Cover	Oct. 28, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Oct. 28, 2024
Entity Registrant Name	Bankwell Financial Group, Inc.
Entity Incorporation, State	CT
Entity File Number	001-36448
Entity Tax Identification Number	20-8251355
Entity Address, Street Name	258 Elm Street
Entity Address, City	New Canaan
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06840
City Area Code	203
Local Phone Number	652-0166
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of Each Class	Common Stock, no par value pershare
Trading Symbol(s)	BWFG
Name of Each Exchange on Which Registered	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0001505732
Amendment Flag	false

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

BWFG Bankwell Financial Group Inc