Form 8-K - Current report

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 25, 2023

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 25, 2023, 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, 2023. 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 25, 2023, 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, 2023. 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

			On October 25, 2023, Bankwell Financial Group, Inc., parent company of Bankwell Bank, announced its Board of Directors has voted to pay a quarterly dividend in the amount of $0.20 per share on November 20, 2023 to all shareholders of record as of November 10, 2023.

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 25, 2023
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 25, 2023			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 AND DECLARES FOURTH QUARTER DIVIDEND

New Canaan, CT –October 25, 2023 – Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $9.8 million, or $1.25 per share for the third quarter of 2023, versus $9.2 million, or $1.18 per share, for the same period in 2022.

The Company's Board of Directors declared a $0.20 per share cash dividend, payable November 20, 2023 to shareholders of record on November 10, 2023.

We recommend reading this earnings release in conjunction with the Third Quarter 2023 Investor Presentation, located at http://investor.mybankwell.com/Presentations and included as an exhibit to our October 25, 2023 Current Report on Form 8-K.

Notes Bankwell Financial Group President and CEO, Christopher R. Gruseke:

"We continue to generate quality returns for our shareholders in a complex interest rate environment. Despite the compression of our Net Interest Margin during the current tightening cycle, our team has delivered a 1.16% Return on Average Assets and a 15.16% Return on Average Equity thus far this year. Our commitment to rigorous expense management lays a solid foundation for our financial success. Non-Interest Expense as a percentage Average Assets stands at 1.54% year-to date, putting Bankwell well ahead of industry peers on this key metric. I applaud the efforts and hard work of our team who enable the Company to perform at this level of efficiency."

Third Quarter 2023 Highlights:

•Total gross loans were $2.8 billion, growing $94.7 million, or 3.5%, compared to December 31, 2022.

•Deposits were $2.8 billion, decreasing $32.2 million, or 1.1%, compared to December 31, 2022.

•Brokered deposits decreased $75.3 million, when compared to December 31, 2022.

•FDIC-insured deposits totaled $2.0 billion and represent 71.2% of total deposits as of September 30, 2023.

•As of September 30, 2023, the Bank has $1.7 billion immediately available liquidity, more than two times coverage of uninsured deposits.

•Average yield on 2023 funded loans was 7.23% as of September 30, 2023.

•Return on average assets was 1.19% for the quarter ended September 30, 2023.

•Return on average shareholders' equity was 15.19% for the quarter ended September 30, 2023.

•The net interest margin was 2.85% for the quarter ended September 30, 2023.

•Noninterest expense to average assets was 1.48% for the quarter ended September 30, 2023.

•Investment securities totaled $115.8 million and represent 3.6% of total assets, with HTM securities totaling $15.9 million, or 0.5% of total assets.

•Allowance for credit losses (ACL)-Loans to total loans was 1.06% as of September 30, 2023.

Earnings and Performance

Revenues (net interest income plus noninterest income) for the quarter ended September 30, 2023 were $23.5 million, versus $25.0 million for the quarter ended September 30, 2022. Revenues for the nine months ended September 30, 2023 were $75.9 million, versus $70.4 million for the nine months ended September 30, 2022. The decrease in revenues for the quarter was primarily attributable to an increase in interest expense partially offset by an increase in interest on loans due to higher overall loan yields1. The increase in revenues for the nine months ended 2023 was primarily attributable to an increase in interest and fees on loans due to loan growth and higher overall loan yields1 partially offset by an increase in interest expense.

1 - The increase in overall loan yields was 100 bps and 114 bps for the quarter and nine months ended September 30, 2023, respectively.

Net income for the quarter ended September 30, 2023 was $9.8 million, versus $9.2 million for the quarter ended September 30, 2022. Net income for the nine months ended September 30, 2023 was $28.1 million, versus $29.4 million for the nine months ended September 30, 2022. The increase in net income for the quarter ended 2023 was primarily due to the credit for credit losses, partially offset by an increase in noninterest expense, and the aforementioned decrease in revenues. The decrease in net income for nine months ended 2023 was due to an increase in noninterest expense partially offset by the aforementioned increase in revenues.

Basic and diluted earnings per share were $1.25 and $1.25, respectively, for the quarter ended September 30, 2023 compared to basic and diluted earnings per share of $1.19 and $1.18, respectively, for the quarter ended September 30, 2022. Basic and diluted earnings per share were $3.61 and $3.58, respectively, for the nine months ended September 30, 2023 compared to basic and diluted earnings per share of $3.80 and $3.75, respectively, for the nine months ended September 30, 2022.

The net interest margin (fully taxable equivalent basis) for the quarters ended September 30, 2023 and September 30, 2022 was 2.85% and 4.12%, respectively. The net interest margin (fully taxable equivalent basis) for the nine months ended September 30, 2023 and September 30, 2022 was 3.04% and 3.81%, respectively. The decrease in the net interest margin was due to an increase in funding costs partially offset by an increase in earning assets.

ACL-Loans

The ACL-Loans was $29.3 million as of September 30, 2023 compared to $30.7 million as of June 30, 2023, for a release of $1.4 million for the quarter ended September 30, 2023. The ACL-Loans as a percentage of total loans was 1.06% as of September 30, 2023 compared to 1.11% as of June 30, 2023. The reduction for the quarter was primarily due to a revision in the CECL methodology given further refinement of the Company's loan portfolio segmentation.

The ACL-Loans was $29.3 million as of September 30, 2023 compared to $22.4 million as of December 31, 2022, an increase of $6.9 million year to date, of which $5.1 million being the CECL transition adjustment to retained earnings. The ACL-Loans as a percentage of total loans was 1.06% as of September 30, 2023 compared to 0.84% as of December 31, 2022. The increase in the ACL-Loans provision for credit losses was primarily driven by loan growth and forward looking CECL macroeconomic factors.

Financial Condition

Assets totaled $3.2 billion at September 30, 2023, a decrease of $2.7 million or 0.1% compared to December 31, 2022. Gross loans totaled $2.8 billion at September 30, 2023, an increase of $94.7 million, or 3.5% compared to December 31, 2022. Deposits totaled $2.8 billion at September 30, 2023, a decrease of $32.2 million, or 1.1% compared to December 31, 2022.

Capital

Shareholders’ equity totaled $257.9 million as of September 30, 2023, an increase of $19.4 million compared to December 31, 2022, primarily a result of net income of $28.1 million for the nine months ended September 30, 2023. The increase was partially offset by the Day 1 CECL adoption of $4.9 million, dividends paid of $4.7 million, and a $1.3 million unfavorable impact to accumulated other comprehensive income. The unfavorable impact to accumulated other comprehensive income was driven by fair value marks on the Company's available for sale investment securities portfolio of $1.4 million partially offset by fair value marks related to hedge positions involving interest rate swaps of $0.1 million. The Company's interest rate swaps are used to hedge interest rate risk.

About Bankwell Financial Group

Bankwell is a commercial bank that serves the banking needs of residents and businesses throughout Fairfield and New Haven Counties, Connecticut. 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.

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, 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, 2023		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022
ASSETS
Cash and due from banks	$	256,973	$	207,345	$	249,812	$	344,925	$	212,175
Federal funds sold	1,122		54,706		27,370		10,754		10,947
Cash and cash equivalents	258,095		262,051		277,182		355,679		223,122

Investment securities
Marketable equity securities, at fair value	1,975		2,017		2,028		1,988		1,973
Available for sale investment securities, at fair value	97,907		99,938		103,171		103,663		95,095
Held to maturity investment securities, at amortized cost	15,885		15,884		15,931		15,983		16,027
Total investment securities	115,767		117,839		121,130		121,634		113,095
Loans receivable (net of ACL-Loans of $29,284, $30,694, $27,998, $22,431, and $18,167 at September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, respectively)	2,735,242		2,736,607		2,724,514		2,646,384		2,263,432

Accrued interest receivable	15,648		14,208		14,261		13,070		9,552
Federal Home Loan Bank stock, at cost	5,696		5,696		5,234		5,216		5,039
Premises and equipment, net	26,899		27,658		27,619		27,199		27,510
Bank-owned life insurance	51,119		50,816		50,524		50,243		49,970
Goodwill	2,589		2,589		2,589		2,589		2,589

Deferred income taxes, net	9,395		10,014		8,692		7,422		5,952
Other assets	29,326		25,229		20,573		23,013		22,734
Total assets	$	3,249,776	$	3,252,707	$	3,252,318	$	3,252,449	$	2,722,995

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits
Noninterest bearing deposits	$	345,433	$	367,635	$	377,667	$	404,559	$	380,365
Interest bearing deposits	2,423,193		2,421,228		2,420,641		2,396,259		1,906,337
Total deposits	2,768,626		2,788,863		2,798,308		2,800,818		2,286,702

Advances from the Federal Home Loan Bank	90,000		90,000		90,000		90,000		90,000
Subordinated debentures	69,143		69,082		69,020		68,959		68,897
Accrued expenses and other liabilities	64,145		55,949		52,683		54,203		45,896
Total liabilities	2,991,914		3,003,894		3,010,011		3,013,980		2,491,495

Shareholders’ equity
Common stock, no par value	117,181		116,541		115,875		115,018		114,548
Retained earnings	142,205		133,988		127,566		123,640		117,152
Accumulated other comprehensive (loss)	(1,524)		(1,716)		(1,134)		(189)		(200)
Total shareholders’ equity	257,862		248,813		242,307		238,469		231,500

Total liabilities and shareholders’ equity	$	3,249,776	$	3,252,707	$	3,252,318	$	3,252,449	$	2,722,995

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, 2023		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022		September 30, 2023		September 30, 2022
Interest and dividend income
Interest and fees on loans	$	43,854	$	42,482	$	39,723	$	36,545	$	28,128	$	126,059	$	74,697
Interest and dividends on securities	1,016		1,002		1,000		898		811		3,018		2,305
Interest on cash and cash equivalents	3,393		3,022		3,568		2,150		747		9,983		1,350
Total interest and dividend income	48,263		46,506		44,291		39,593		29,686		139,060		78,352

Interest expense
Interest expense on deposits	23,789		20,777		17,033		11,083		4,092		61,599		8,281
Interest expense on borrowings	1,783		1,738		1,717		1,701		993		5,238		2,137
Total interest expense	25,572		22,515		18,750		12,784		5,085		66,837		10,418

Net interest income	22,691		23,991		25,541		26,809		24,601		72,223		67,934
(Credit) provision for credit losses	(1,579)		2,579		826		4,272		2,381		1,826		1,165
Net interest income after provision for credit losses	24,270		21,412		24,715		22,537		22,220		70,397		66,769

Noninterest income
Bank owned life insurance	303		292		281		273		271		876		796
Service charges and fees	294		361		286		343		240		941		729


Gains and fees from sales of loans	237		725		931		12		(15)		1,893		1,224
Other	(48)		23		28		(100)		(94)		3		(237)
Total noninterest income	786		1,401		1,526		528		402		3,713		2,512

Noninterest expense
Salaries and employee benefits	6,036		6,390		6,081		5,988		5,876		18,507		16,249
Occupancy and equipment	2,146		2,204		2,084		1,919		2,035		6,434		6,378
Professional services	491		692		1,322		912		994		2,505		2,975
Data processing	741		729		671		663		626		2,141		1,969
Director fees	362		453		392		378		325		1,207		1,016
FDIC insurance	1,026		1,050		1,062		898		255		3,138		740
Marketing	184		177		151		112		102		512		254

Other	1,219		946		928		1,601		818		3,093		2,311
Total noninterest expense	12,205		12,641		12,691		12,471		11,031		37,537		31,892

Income before income tax expense	12,851		10,172		13,550		10,594		11,591		36,573		37,389
Income tax expense	3,074		2,189		3,171		2,573		2,417		8,434		7,981
Net income	$	9,777	$	7,983	$	10,379	$	8,021	$	9,174	$	28,139	$	29,408

Earnings Per Common Share:
Basic	$	1.25	$	1.02	$	1.34	$	1.04	$	1.19	$	3.61	$	3.80
Diluted	$	1.25	$	1.02	$	1.33	$	1.04	$	1.18	$	3.58	$	3.75

Weighted Average Common Shares Outstanding:
Basic	7,598,230		7,593,417		7,554,689		7,507,540		7,553,718		7,582,272		7,582,175
Diluted	7,633,934		7,601,562		7,616,671		7,563,116		7,612,421		7,646,837		7,664,123
Dividends per common share	$	0.20	$	0.20	$	0.20	$	0.20	$	0.20	$	0.60	$	0.60

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)


	For the Quarter Ended										For the Nine Months Ended
	September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022		September 30, 2023		September 30, 2022
Performance ratios:
Return on average assets	1.19	%	0.99	%	1.30	%	1.07	%	1.47	%	1.16	%	1.59	%
Return on average shareholders' equity	15.19	%	12.91	%	17.48	%	13.38	%	15.73	%	15.16	%	17.94	%
Return on average tangible common equity	15.35	%	13.05	%	17.67	%	13.52	%	15.91	%	15.32	%	18.16	%
Net interest margin	2.85	%	3.07	%	3.24	%	3.70	%	4.12	%	3.04	%	3.81	%
Efficiency ratio(1)	52.0	%	49.8	%	46.9	%	45.6	%	44.1	%	49.4	%	45.3	%
Net loan charge-offs as a % of average loans	—	%	—	%	0.02	%	—	%	—	%	0.01	%	—	%
Dividend payout ratio(2)	16.00	%	19.61	%	15.04	%	19.23	%	16.95	%	16.76	%	16.00	%

(1)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.

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


	As of
	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
Capital ratios:
Total Common Equity Tier 1 Capital to Risk-Weighted Assets(1)	10.82		%	10.34		%	10.17		%	10.28		%	11.42		%
Total Capital to Risk-Weighted Assets(1)	11.86		%	11.41		%	11.16		%	11.07		%	12.16		%
Tier I Capital to Risk-Weighted Assets(1)	10.82		%	10.34		%	10.17		%	10.28		%	11.42		%
Tier I Capital to Average Assets(1)	9.60		%	9.41		%	9.22		%	9.88		%	11.31		%
Tangible common equity to tangible assets	7.86		%	7.58		%	7.38		%	7.26		%	8.41		%
Fully diluted tangible book value per common share	$	32.55		$	31.45		$	30.56		$	30.51		$	29.68

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

BANKWELL FINANCIAL GROUP, INC.

ASSET QUALITY (unaudited)

(Dollars in thousands)


	For the Quarter Ended
	September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022
ACL-Loans:
Balance at beginning of period	$	30,694	$	27,998	$	22,431	$	18,167	$	15,773
Day 1 CECL Adjustment on January 1, 2023	—		—		5,079		—		—
Beginning balance January 1, 2023	30,694		27,998		27,510		18,167		—
Charge-offs:


Commercial business	—		—		(440)		—		—
Consumer	(31)		(25)		(12)		(11)		(8)
Total charge-offs	(31)		(25)		(452)		(11)		(8)
Recoveries:
Commercial real estate	—		—		—		—		—
Commercial business	35		32		—		—		21
Consumer	19		10		6		3		—
Total recoveries	54		42		6		3		21
Net loan recoveries (charge-offs)	23		17		(446)		(8)		13
(Credit) provision for credit losses - loans	(1,433)		2,679		934		4,272		2,381
Balance at end of period	$	29,284	$	30,694	$	27,998	$	22,431	$	18,167


	As of
	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
Asset quality:
Nonaccrual loans
Residential real estate	$	1,408		$	1,429		$	1,443		$	2,152		$	2,137
Commercial real estate	1,898			1,905			1,912			2,781			2,894
Commercial business	7,352			2,815			1,528			2,126			2,380
Construction	9,382			9,382			9,382			9,382			9,382
Consumer	7,917			—			—			—			—
Total nonaccrual loans	27,957			15,531			14,265			16,441			16,793
Other real estate owned	—			—			—			—			—
Total nonperforming assets	$	27,957		$	15,531		$	14,265		$	16,441		$	16,793

Nonperforming loans as a % of total loans	1.01		%	0.56		%	0.52		%	0.61		%	0.73		%
Nonperforming assets as a % of total assets	0.86		%	0.48		%	0.44		%	0.51		%	0.62		%
ACL-loans as a % of total loans	1.06		%	1.11		%	1.01		%	0.84		%	0.79		%
ACL-loans as a % of nonperforming loans	104.75		%	197.63		%	196.27		%	136.43		%	108.18		%
Total past due loans to total loans	1.44		%	1.30		%	0.94		%	0.60		%	0.78		%

Total nonaccrual loans increased $11.5 million to $28.0 million as of September 30, 2023 when compared to December 31, 2022. Nonaccrual loans increased primarily due to three distinct loans:

•One Consumer (insurance premium) loan of $7.9 million. As of October 4, 2023, the loan balance has been reduced to $3.9 million. The Bank holds collateral for the remaining balance, worth approximately two times the outstanding amount.

•Two Commercial business loans totaling $5.5 million, of which approximately 82% is guaranteed by the U.S. Government (SBA).

Nonperforming assets as a percentage of total assets increased to 0.86% at September 30, 2023 from 0.51% at December 31, 2022. The ACL-Loans at September 30, 2023 was $29.3 million, representing 1.06% of total loans.

BANKWELL FINANCIAL GROUP, INC.

LOAN & DEPOSIT PORTFOLIO (unaudited)

(Dollars in thousands)


Period End Loan Composition	September 30, 2023		June 30, 2023		December 31, 2022		Current QTD % Change		YTD % Change
Residential Real Estate	$	52,908	$	54,631	$	60,588	(3.2)	%	(12.7)	%
Commercial Real Estate(1)	1,955,992		1,930,972		1,921,252		1.3		1.8
Construction	199,972		219,615		155,198		(8.9)		28.8
Total Real Estate Loans	2,208,872		2,205,218		2,137,038		0.2		3.4

Commercial Business	508,626		530,913		520,447		(4.2)		(2.3)

Consumer	52,612		37,475		17,963		40.4		192.9
Total Loans	$	2,770,110	$	2,773,606	$	2,675,448	(0.1)	%	3.5	%

(1) Includes owner occupied commercial real estate.

Gross loans totaled $2.8 billion at September 30, 2023, an increase of $94.7 million or 3.5% compared to December 31, 2022.


Period End Deposit Composition	September 30, 2023		June 30, 2023		December 31, 2022		Current QTD % Change		YTD % Change
Noninterest bearing demand	$	345,433	$	367,635	$	404,559	(6.0)	%	(14.6)	%
NOW	101,719		106,189		104,057		(4.2)		(2.2)
Money Market	879,978		879,017		913,868		0.1		(3.7)
Savings	102,207		108,625		151,944		(5.9)		(32.7)
Time	1,339,289		1,327,397		1,226,390		0.9		9.2
Total Deposits	$	2,768,626	$	2,788,863	$	2,800,818	(0.7)	%	(1.1)	%

Total deposits were $2.8 billion at September 30, 2023, a decrease of $32.2 million, or 1.1%, when compared to December 31, 2022. Brokered deposits have decreased $75.3 million, when compared to December 31, 2022.

BANKWELL FINANCIAL GROUP, INC.

NONINTEREST EXPENSE (unaudited)

(Dollars in thousands)


	For the Quarter Ended
Noninterest expense	September 30, 2023		June 30, 2023		September 30, 2022		Sep 23 vs. June 23 % Change		Sep 23 vs. Sep 22 % Change
Salaries and employee benefits	$	6,036	$	6,390	$	5,876	(5.5)	%	2.7	%
Occupancy and equipment	2,146		2,204		2,035		(2.6)		5.5
Professional services	491		692		994		(29.0)		(50.6)
Data processing	741		729		626		1.6		18.4
Director fees	362		453		325		(20.1)		11.4
FDIC insurance	1,026		1,050		255		(2.3)		302.4
Marketing	184		177		102		4.0		80.4
Other	1,219		946		818		28.9		49.0
Total noninterest expense	$	12,205	$	12,641	$	11,031	(3.4)	%	10.6	%


	For the Nine Months Ended
Noninterest expense	September 30, 2023		September 30, 2022		% Change
Salaries and employee benefits	$	18,507	$	16,249	13.9	%
Occupancy and equipment	6,434		6,378		0.9	%
Professional services	2,505		2,975		(15.8)	%
Data processing	2,141		1,969		8.7	%
Director fees	1,207		1,016		18.8	%
FDIC insurance	3,138		740		324.1	%
Marketing	512		254		101.6	%
Other	3,093		2,311		33.8	%
Total noninterest expense	$	37,537	$	31,892	17.7	%

Noninterest expense increased by $1.2 million to $12.2 million for the quarter ended September 30, 2023 compared to the quarter ended September 30, 2022. Noninterest expense increased by $5.6 million to $37.5 million for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022. The increase in noninterest expense was primarily driven by an increase in FDIC insurance expense and salaries and employee benefits expense.

FDIC insurance expense totaled $1.0 million for the quarter ended September 30, 2023, an increase of $0.8 million when compared to the same period in 2022. FDIC insurance expense totaled $3.1 million for the nine months ended September 30, 2023, an increase of $2.4 million when compared to the same period in 2022. The increase in FDIC insurance expense is attributed to balance sheet growth and composition, as well as an increase in FDIC insurance rates.

Salaries and employee benefits expense totaled $18.5 million for the nine months ended September 30, 2023, an increase of $2.3 million when compared to the same period in 2022. The increase in salaries and employee benefits expense was driven by an increase in average full time equivalent employees from 139 at September 30, 2023 compared to 131 for the same period in 2022. In addition, salaries and employee benefits expense increased due to one-time severance costs.

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, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
Total Equity	$	257,862		$	248,813		$	242,307		$	238,469		$	231,500
Less:
Goodwill	2,589			2,589			2,589			2,589			2,589
Other intangibles	—			—			—			—			—
Tangible Common Equity	$	255,273		$	246,224		$	239,718		$	235,880		$	228,911

Total Assets	$	3,249,776		$	3,252,707		$	3,252,318		$	3,252,449		$	2,722,995
Less:
Goodwill	2,589			2,589			2,589			2,589			2,589
Other intangibles	—			—			—			—			—
Tangible Assets	$	3,247,187		$	3,250,118		$	3,249,729		$	3,249,860		$	2,720,406

Tangible Common Equity to Tangible Assets	7.86		%	7.58		%	7.38		%	7.26		%	8.41		%


	As of
Computation of Fully Diluted Tangible Book Value per Common Share	September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022
Total shareholders' equity	$	257,862	$	248,813	$	242,307	$	238,469	$	231,500
Less:
Preferred stock	—		—		—		—		—
Common shareholders' equity	$	257,862	$	248,813	$	242,307	$	238,469	$	231,500
Less:
Goodwill	2,589		2,589		2,589		2,589		2,589
Other intangibles	—		—		—		—		—
Tangible common shareholders' equity	$	255,273	$	246,224	$	239,718	$	235,880	$	228,911

Common shares issued and outstanding	7,841,616		7,829,950		7,843,438		7,730,699		7,711,843







Fully Diluted Tangible Book Value per Common Share	$	32.55	$	31.45	$	30.56	$	30.51	$	29.68

BANKWELL FINANCIAL GROUP, INC.

EARNINGS PER SHARE ("EPS") (unaudited)

(Dollars in thousands, except share data)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In thousands, except per share data)
Net income	$	9,777	$	9,174	$	28,140	$	29,408
Dividends to participating securities(1)	(41)		(33)		(125)		(101)
Undistributed earnings allocated to participating securities(1)	(209)		(159)		(613)		(529)
Net income for earnings per share calculation	$	9,527	$	8,982	$	27,402	$	28,778

Weighted average shares outstanding, basic	7,598		7,554		7,582		7,582
Effect of dilutive equity-based awards(2)	36		58		65		82
Weighted average shares outstanding, diluted	7,634		7,612		7,647		7,664
Net earnings per common share:
Basic earnings per common share	$	1.25	$	1.19	$	3.61	$	3.80
Diluted earnings per common share	$	1.25	$	1.18	$	3.58	$	3.75

(1) Represents dividends paid and undistributed earnings allocated to unvested stock-based awards that contain non-forfeitable rights to dividends.

(2) Represents the effect of the assumed exercise of stock options and the vesting of restricted shares, as applicable, utilizing the treasury stock method.

BANKWELL FINANCIAL GROUP, INC.

NONINTEREST INCOME (unaudited)

(Dollars in thousands)


	For the Quarter Ended
Noninterest income	September 30, 2023		June 30, 2023		September 30, 2022		Sep 23 vs. June 23 % Change		Sep 23 vs. Sep 22 % Change
Bank owned life insurance	$	303	$	292	$	271	3.8	%	11.8	%
Service charges and fees	294		361		240		(18.6)		22.5


Gains and fees from sales of loans	237		725		(15)		(67.3)		Favorable
Other	(48)		23		(94)		Unfavorable		Favorable
Total noninterest income	$	786	$	1,401	$	402	(43.9)	%	95.5	%


	For the Nine Months Ended
Noninterest income	September 30, 2023		September 30, 2022		% Change
Bank owned life insurance	$	876	$	796	10.1	%
Service charges and fees	941		729		29.1
Gains and fees from sales of loans	1,893		1,224		54.7


Other	3		(237)		Favorable
Total noninterest income	$	3,713	$	2,512	47.8	%

Noninterest income increased by $0.4 million to $0.8 million for the quarter ended September 30, 2023 compared to the quarter ended September 30, 2022. Noninterest income increased by $1.2 million to $3.7 million for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022. The increase in noninterest income was driven by an increase in gains on SBA loan sales and service charges and fees for the quarter and nine months ended 2023.

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, 2023						September 30, 2022
	Average Balance		Interest		Yield/ Rate (4)		Average Balance		Interest		Yield/ Rate (4)
Assets:
Cash and Fed funds sold	$	265,115	$	3,393	5.08	%	$	130,440	$	747	2.27	%
Securities(1)	127,229		953		3.00		120,092		829		2.76
Loans:
Commercial real estate	1,943,725		28,140		5.67		1,512,381		18,830		4.87
Residential real estate	53,966		671		4.97		62,915		586		3.72
Construction	209,154		3,908		7.31		116,256		1,512		5.09
Commercial business	539,185		10,394		7.54		431,917		7,058		6.39
Consumer	44,020		740		6.66		12,145		142		4.65
Total loans	2,790,050		43,853		6.15		2,135,614		28,128		5.15
Federal Home Loan Bank stock	5,696		116		8.13		5,021		31		2.51
Total earning assets	3,188,090		$	48,315	5.93	%	2,391,167		$	29,735	4.87	%
Other assets	78,089						89,173
Total assets	$	3,266,179					$	2,480,340

Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW	$	102,149	$	47	0.18	%	$	119,593	$	52	0.17	%
Money market	922,036		9,064		3.90		828,541		2,346		1.12
Savings	105,366		817		3.08		189,279		474		0.99
Time	1,322,074		13,860		4.16		557,243		1,220		0.87
Total interest bearing deposits	2,451,625		23,788		3.85		1,694,656		4,092		0.96
Borrowed Money	159,103		1,784		4.39		135,221		993		2.87
Total interest bearing liabilities	2,610,728		$	25,572	3.89	%	1,829,877		$	5,085	1.10	%
Noninterest bearing deposits	345,988						383,048
Other liabilities	54,136						36,037
Total liabilities	3,010,852						2,248,962
Shareholders' equity	255,327						231,378
Total liabilities and shareholders' equity	$	3,266,179					$	2,480,340
Net interest income(2)			$	22,743					$	24,650
Interest rate spread					2.04	%					3.77	%
Net interest margin(3)					2.85	%					4.12	%

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

(2)The adjustment for securities and loans taxable equivalency amounted to $52 thousand and $49 thousand for the quarters

ended September 30, 2023 and 2022, 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, 2023						September 30, 2022
	Average Balance		Interest		Yield/ Rate (4)		Average Balance		Interest		Yield/ Rate (4)
Assets:
Cash and Fed funds sold	$	281,033	$	9,983	4.75	%	$	240,252	$	1,350	0.75	%
Securities(1)	128,554		2,864		2.97	%	117,008		2,392		2.73	%
Loans:
Commercial real estate	1,932,549		79,958		5.46	%	1,433,642		51,104		4.70	%
Residential real estate	56,798		1,957		4.59	%	67,705		1,810		3.56	%
Construction	194,396		10,582		7.18	%	108,249		4,482		5.46	%
Commercial business	546,329		32,073		7.74	%	402,876		17,011		5.57	%
Consumer	30,571		1,489		6.51	%	7,844		290		4.94	%
Total loans	2,760,643		126,059		6.02	%	2,020,316		74,697		4.88	%
Federal Home Loan Bank stock	5,527		308		7.46	%	3,715		61		2.19	%
Total earning assets	3,175,757		$	139,214	5.78	%	2,381,291		$	78,500	4.35	%
Other assets	66,342						89,747
Total assets	$	3,242,099					$	2,471,038

Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW	$	97,741	$	127	0.17	%	$	122,792	$	158	0.17	%
Money market	910,840		23,532		3.45	%	909,106		4,672		0.69	%
Savings	117,984		2,404		2.72	%	194,013		678		0.47	%
Time	1,291,124		35,536		3.68	%	487,792		2,773		0.76	%
Total interest bearing deposits	2,417,689		61,599		3.41	%	1,713,703		8,281		0.65	%
Borrowed Money	161,166		5,238		4.29	%	101,685		2,137		2.77	%
Total interest bearing liabilities	2,578,855		$	66,837	3.47	%	1,815,388		$	10,418	0.77	%
Noninterest bearing deposits	374,943						398,728
Other liabilities	40,192						37,784
Total liabilities	2,993,990						2,251,900
Shareholders' equity	248,109						219,138
Total liabilities and shareholders' equity	$	3,242,099					$	2,471,038
Net interest income(2)			$	72,377					$	68,082
Interest rate spread					2.31	%					3.58	%
Net interest margin(3)					3.04	%					3.81	%

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

(2)The adjustment for securities and loans taxable equivalency amounted to $154 thousand and $148 thousand for the nine months ended September 30, 2023 and 2022, 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.

BWFG | LISTED | NASDAQ 3Q23 Investor Presentation October 25th, 2023

2 BWFG LISTED NASDAQ BWFG LISTED NASDAQ This presentation may contain certain forward-looking statements about Bankwell Financial Group, Inc. (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,” “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. Safe Harbor

3 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Table of Contents • 3Q23 Performance • Deposits & Liquidity • Loans • Credit Quality & Capital • Bankwell History & Overview

BWFG | LISTED | NASDAQ 3Q23 Performance

5 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 3Q23 Summary • 3Q23 Net Income of $9.8 million, or $1.25 earnings per share (“EPS”) • Return on Average Assets (“ROAA”) and Return on Average Equity (“ROAE”) were 1.19% and 15.19%, respectively for the quarter, and 1.16% and 15.16% year-to-date • Pre-tax, Pre-provision Net Revenue (“PPNR”)1 of $11.3 million, or 1.37% PPNR ROAA for the quarter • 1.48% Non-interest Expense as a percent of Average Assets for the quarter and 1.54% year-to-date • Year-to-date net interest margin (“NIM”) of 3.04%; 3Q23 NIM of 2.85% & September NIM of 2.68% • Year-to-date net loan growth of $96 million, with new fundings at a weighted average yield of 7.23% • Year-to-date, total deposits decreased $32 million, with brokered deposits down $75 million • $1.7 billion immediately available liquidity providing more than 2X coverage of uninsured deposits ‒ 25% uninsured deposits; insured deposits include 71% FDIC-insured & 4% insured by FHLB SBLOCs • $32.55 Tangible Book Value; 15% CAGR since year-end 2020 (including one-time CECL impact) • AFS securities valuations hedged with interest rate swaps; net AOCI impact of $(1.5) million • The Bank remains well capitalized with an 11.86% Total Capital ratio and 7.86% Tangible Common Equity 1 Pre-tax, pre-provision net revenue per share is a non-GAAP metric & excludes provision for loan losses and income tax expense 2 As of October 24, 2023 3 HTM securities not recorded in Book Value

6 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 3Q23 Results 1 Ratios presented represent Bank ratios; presented ratios are preliminary, subject to finalization of the FDIC Call Report 2 Bankwell meets Adequate + buffer standard, which exceeds Well Capitalized thresholds Profitability Balance Sheet Capital • $2.8 billion of gross loans • $2.8 billion of deposits • 1.06% ACL-Loans • Dividend of $0.20 per share paid • $32.55 Fully Diluted Tangible Book Value • Well Capitalized1,2 Tier 1 Leverage1 9.60% Tier1/CET1 / RWA1 10.82% Total Capital / RWA1 11.86% QTR YTD • Net Income $9.8 million $28.1 million • PPNR $11.3 million $38.4 million • Return on Average Assets 1.19% 1.16% • PPNR / Average Assets 1.37% 1.58% • Return on Average Equity 15.19% 15.16%

7 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Income Statement 3Q23 2Q23 Var1 Total Interest Income $48.3 $46.5 $1.8 Total Interest Expense $25.6 $22.5 $(3.1) Net Interest Income $22.7 $24.0 $(1.3) Non-Interest Income $0.8 $1.4 $(0.6) Non-Interest Expense $12.2 $12.7 $0.5 Pre-Tax, Pre-Provision Net Revenue $11.3 $12.8 $(1.5) (Credit) provision for Credit Losses $(1.6) $2.6 $4.2 Pre-Tax Income $12.9 $10.2 $2.7 Income Tax Expense $3.1 $2.2 $(0.9) Reported Net Income $9.8 $8.0 $1.8 EPS $1.25 $1.02 $0.23 Pre-Tax, Pre-Provision Net Revenue per share2 $1.48 $1.68 $(0.20) 1 Variances are rounded based on actual whole dollar amounts 2 Pre-tax, pre-provision net revenue per share is a non-GAAP metric & excludes provision for loan losses and income tax expense Dollars in millions, except per share data Balance Sheet 3Q23 2Q23 Var1 Cash & Cash Equivalents $258 $262 $(4) Investment Securities $116 $118 $(2) Loans Receivable, net $2,735 $2,737 $(2) All Other Assets $141 $136 $5 Total Assets $3,250 $3,253 $(3) Total Deposits $2,769 $2,789 $(20) Total Borrowings $159 $159 $0 Other Liabilities $64 $56 $8 Total Liabilities $2,992 $3,004 $(12) Equity $258 $249 $9 Total Liabilities & Equity $3,250 $3,253 $(3) 3Q23 Consolidated Financial Statements Linked Quarter

8 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Income Statement 3Q 2023 3Q 2022 Var1 Total Interest Income $139.1 $78.4 $60.7 Total Interest Expense $66.8 $10.4 $(56.4) Net Interest Income $72.2 $67.9 $4.3 Non-Interest Income $3.7 $2.5 $1.2 Non-Interest Expense $37.5 $31.9 $(5.6) Pre-Tax, Pre-Provision Net Revenue $38.4 $38.6 $(0.2) Provision for Loan Losses $1.8 $1.2 $(0.6) Pre-Tax Income $36.6 $37.4 $(0.8) Income Tax Expense $8.4 $8.0 $(0.4) Reported Net Income $28.1 $29.4 $(1.3) EPS $3.58 $3.75 $(0.17) Pre-Tax, Pre-Provision Net Revenue per share2 $5.02 $5.03 $(0.01) 1 Variances are rounded based on actual whole dollar amounts 2 Pre-tax, pre-provision net revenue per share is a non-GAAP metric & excludes provision for loan losses and income tax expense Dollars in millions, except per share data YTD Consolidated Income Statement Prior Year

9 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Performance Trends $2.21 $2.31 $0.75 $3.36 $4.79 $3.58 2018 2019 2020 2021 2022 3Q23 YTD Diluted EPS 0.94% 0.97% 0.28% 1.17% 1.44% 1.16% 2018 2019 2020 2021 2022 3Q23 YTD Return on Average Assets 10.19% 10.20% 3.35% 13.86% 16.72% 15.16% 2018 2019 2020 2021 2022 3Q23 YTD Return on Average Equity $21.85 $22.82 $21.96 $25.55 $30.51 $32.55 2018 2019 2020 2021 2022 3Q23 Fully Diluted Tangible Book Value 1 Includes $0.63 impact for the 1/1/23 CECL adjustment 1

10 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 59.2% 60.2% 73.9% 53.9% 45.4% 49.4%1.93% 1.90% 2.03% 1.75% 1.71% 1.54% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% 2.20% 2.40% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 2018 2019 2020 2021 2022 3Q23 YTD Efficiency Ratio Non-interest Expense / Average Assets 1 A non-GAAP metric 1 Efficiency Trends

BWFG | LISTED | NASDAQ Deposits & Liquidity

12 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 16.2% 15.0% 16.7% 36.7% 34.7% 8.4% 6.1% 2.6% 2.7% 4.8% 75.5% 78.9% 80.6% 60.5% 60.5% $1,492 $1,827 $2,124 $2,801 $2,769 4Q19 4Q20 4Q21 4Q22 3Q23 Core Deposits Retail CDs >$250k Brokered Deposits Brokered deposits decreased $75 million since 4Q22; Wholesale ratio improved to 32.1% Deposit Balances 1 1 Core Deposits include Commercial and Consumer checking, savings and money market accounts, and retail CD under $250k 2 Wholesale Funding ratio defined as brokered deposits and FHLB borrowings to total assets Dollars in millions 20.6% 19.8% 16.4% 34.4% 32.1% Wholesale Funding ratio2 FHLB Borrowings $150 $175 $50 $90 $90

13 BWFG LISTED NASDAQ BWFG LISTED NASDAQ • NIM declining with inverted yield curve: • September 2023 NIM of 2.68% • 9/30/2023 ‘exit rates’ of 6.08% on loans & 3.47% on deposits Net Interest Margin 2.77% 3.17% 3.78% 3.24% 3.15% 3.04% 4.48% 4.42% 5.10% 5.87% 5.96% 6.02% 1.07% 0.54% 0.87% 2.47% 2.73% 2.95% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 2020 2021 2022 1Q23 YTD 2Q23 YTD 3Q23 YTD Net Interest Margin Loan Yield Cost of Deposits 1 Includes origination fee amortization 1 3.30% 3.75% 3.96% 3.70% 3.24% 3.06% 2.85% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Quarterly NIM

14 BWFG LISTED NASDAQ BWFG LISTED NASDAQ FDIC Insured Deposits 71% Uninsured Deposits 25% FHLB Insured Deposits 4% Liquidity 1 Bank lines, including FHLB & FRB 2 Cash held with right of offset as collateral against loans Ample coverage of uninsured deposits • $2,089 million total insured deposits, including $1,970 million FDIC-insured deposits • Uninsured deposits include restricted funds held as cash reserves against loans • Over 2X liquidity coverage on $680 million uninsured deposits: • 11% liquidity on balance sheet (Cash & AFS Securities) + Unencumbered Cash $251 + AFS Securities $101 + Borrowing Capacity1 $1,308 Immediately Available Liquidity $1,660 Total Deposits = $2,769 million Deposits Held as Cash Reserves 2%

15 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Deposit Composition • No digital currency deposits • No single depositor greater than 3% of total deposits • Average account size of $84K1 • Long-term mix shift into Business deposits Deposits by Industry 1 Excluding Brokered deposits 1 Well diversified deposit base 50% 39% 36% 31% 27% 50% 61% 64% 69% 73% Dec-19 Dec-20 Dec-21 Dec-22 Sep-23 Core Deposit Mix excluding Retail CDs Consumer Business Consumer 40.0% Real Estate and Rental/Leasing 12.0% Professional, Sci & Tech Services 11.6% Finance & Insurance 11.3% Public Administration 9.0% Health Care & Social Assistance… Other 11.3%

BWFG | LISTED | NASDAQ Loans

17 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Loan Balances Increased reliance on C&I and CRE Owner Occupied Dollars in millions C&I + CRE Owner Occupied / Total Loans 27.3% 34.9% 45.5% 44.3% $981 $976 $1,023 $1,042 $1,046 $1,051 $1,032 $1,147 $1,224 $1,225 $1,215 $1,240 $167 $207 $244 $296 $310 $375 $467 $501 $697 $736 $716 $716 $277 $268 $280 $293 $351 $370 $372 $443 $522 $543 $532 $509 $87 $103 $83 $95 $98 $116 $111 $117 $155 $177 $220 $200 $114 $119 $109 $99 $89 $73 $74 $79 $77 $78 $92 $106 $1,626 $1,673 $1,738 $1,825 $1,895 $1,985 $2,057 $2,287 $2,675 $2,759 $2,774 $2,770 - 500 1,000 1,500 2,000 2,500 3,000 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 CRE Investor CRE Owner Occupied C&I Construction Residential / Other

18 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Loan Yields Steadily Increasing 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 9-30-2023, an “exit" rate 1 Dollars in millions Loan portfolio yields increased 173 bps since December 31, 2020 • 69% of balances are 2021 - 2023 vintages September 2023 Yield2 by Vintage 4.87% Pre 2020 6.06% 2020 5.66% 2021 6.43% 2022 7.23% 2023 $1,626 $1,673 $1,738 $1,825 $1,895 $1,985 $2,057 $2,287 $2,675 $2,759 $2,774 $2,770 4.18% 4.22% 4.23% 4.28% 4.30% 4.34% 4.55% 4.99% 5.56% 5.75% 5.87% 5.91% 0.10% 1.10% 2.10% 3.10% 4.10% 5.10% 6.10% - 500 1,000 1,500 2,000 2,500 3,000 3,500 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Loan Balance Loan Portfolio Yield

19 BWFG LISTED NASDAQ BWFG LISTED NASDAQ • No single relationship represents more than ~3% of total loans, as of September 30, 2023 • Investor CRE continues to shrink as an overall percentage of the loan portfolio: Total Loan Portfolio = $2,770 million Loan Portfolio Composition Residential 1.8% C&I 18.4% CRE Owner Occupied 25.9% CRE Investor 44.7% Commercial Const. 7.2% Other 2.0% 60.4% 55.2% 45.8% 44.7% 27.3% 34.9% 45.5% 44.3% 4Q20 4Q21 4Q22 3Q23 CRE Investor CRE O/O + C&I

20 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Retail 21.1% Office 10.1% Residential Care 32.3% MultiFamily 11.6% Industrial Warehouse 8.8% Mixed Use 5.6% Medical Office 4.4% Other 4.5% Special Use 1.6% Total CRE Portfolio = $1,956 million 1 Includes Owner Occupied CRE, does not include Construction 2 LTVs based on original LTV values, at origination CRE Loan Portfolio • Portfolio weighted average LTV2 of 64.5% • ~66% of all CRE loan balances have recourse; up from ~50% at 1Q21 • $198 million in Office loans (~7% total loan portfolio) ‒ No New York City exposure ‒ ~68% located in Bankwell’s primary market ‒ Out of primary market loans are generally either GSA- leased, credit tenants, or owner-occupied ‒ Portfolio is current, ~97% of loans have “Pass” rating • CRE loan portfolio mix improving favorably with Owner Occupied growth: 1 Dollars in millions 3 85.4% 77.1% 63.7% 63.3% 14.6% 22.9% 36.3% 36.7% 4Q20 4Q21 4Q22 3Q23 Investor Owner Occupied

21 BWFG LISTED NASDAQ BWFG LISTED NASDAQ 1 Includes Owner Occupied CRE, does not include Construction 2 Consists primarily of skilled nursing and/or assisted living facilities • Greater geographic diversity attributed to growth in Residential Care2 sector • Continued diversification by following strongest customers to attractive markets • Of the CT-based loans, ~46% are in Fairfield County 1 CRE Loan Portfolio Geography CT 28.9% NY 21.8% FL 17.2% NJ 6.1%OH 4.5% TX 3.4% PA 3.3% Other 14.8%

22 BWFG LISTED NASDAQ BWFG LISTED NASDAQ C&I Loan Portfolio Loans by Industry Type Total C&I Portfolio = $509 million 1 1 Does not Include Owner Occupied CRE • 87% of C&I portfolio has recourse • 93% of Health Care loans have recourse - Primarily consists of working capital lines secured by accounts receivable • Insurance lending primarily to brokers of home and auto insurance Finance 18% Insurance (Primarily Brokers) 27%Health Care & Social Assistance 32% Admin & Support, Waste Mgmt, Remediation Svcs 4% Construction 3% Real Estate and Rental/Leasing 3% Arts, Entertainment & Recreation 3% Manufacturing 3% Other 7%

23 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Healthcare Portfolio Healthcare Portfolio Composition CRE Skilled Nursing Facility By State • 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 1 Includes CRE and C&I 2 Includes Physicians 2 1 Skilled Nursing Facilities 78% Assisted Living 11% Recovery 5% Other 6% FL 49% OH 13% NY 9% PA 4% AL 4% VA 4% NJ 4% Other 13%

24 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Commercial Construction Portfolio • Commercial construction loans comprise ~7% of total loan portfolio ($200 million) • $115 million of unfunded commitments, committed construction draws are subject to various terms and conditions, including completion of work verified by third party professional inspection Dollars in millions By Property Type # Loans $ Committed % Unfunded $ Unfunded 2Q23 Balance 38 $345 38% $130 Closures in 3Q23 (4) $(36) 2Q23 Loans @ 3Q23 34 $309 37% $115 New 3Q23 Loans 1 $1 3Q23 Balance 38 $310 37% $115 Multifamily 43% Mixed Use 32% Land 16% Self Storage 7% Retail 2%

BWFG | LISTED | NASDAQ Credit Quality & Capital

26 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Credit Quality $16,793 $16,441 $14,265 $15,531 $27,957 0.73% 0.61% 0.52% 0.56% 1.01% 0.00% 0.50% 1.00% 1.50% 2.00% $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 3Q22 4Q22 1Q23 2Q23 3Q23 NPLs NPL to gross loans Non Performing Loans (“NPL”) Dollars in thousands NPL related to COVID-19 ‒ Single loan - 46% LTV ‒ Full recourse / Full payment expected ‒ High net worth guarantors $18,167 $22,431 $27,998 $30,694 $29,284 0.79% 0.84% 1.01% 1.11% 1.06% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 3Q22 4Q22 1Q23 2Q23 3Q23 Allowance for credit losses ACL / Loans Allowance for Credit Losses (“ACL”) • 3Q23 increase in NPLs of $11.5 million due to: ‒ One Consumer (insurance premium) loan $7.9 million; $3.9 million balance as of 10/4/23 and is secured by collateral at Bank ‒ Two C&I loans totaling $5.5 million; 82% guaranteed by U.S. Government • 3Q23 ACL/Loans ratio down 5 bps QoQ driven by further CECL methodology refinement on loan portfolio segmentation • 3Q23 105% Allowance for credit losses coverage of NPLs ‒ Excluding SBA-guaranteed & COVID NPLs, coverage of 258% 1.01% SBA-guaranteed portion of NPLs All other NPLs 0.34% 0.26% 0.41% 3Q23 1 Includes 1/1 opening entry for CECL adoption ($5.1 million) 1

27 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Credit Quality Dollars in millions 3Q22 4Q22 1Q23 2Q23 3Q23 Risk Rating Balance % Balance % Balance % Balance % Balance % 1-5 “Pass” $2,242 98.0% $2,632 98.4% $2,714 98.4% $2,710 97.7% $2,694 97.2% 6 “Special Mention” $2 0.1% $1 0.0% $1 0.1% $28 1.0% $22 0.8% 7 “Substandard” $43 1.9% $43 1.6% $40 1.4% $36 1.3% $54 2.0% 8 “Doubtful” $0 0.0% $0 0.0% $2 0.1% $0 0.0% $0 0.0% Total $2,287 $2,675 $2,757 $2,774 $2,770 3Q23 “Substandard” increase due to 3 distinct loans: • One Consumer loan ($8 million) • One CRE loan ($6 million) • One C&I loan ($3 million) ($0.013) $0.008 $0.446 ($0.017) ($0.023) $0 $0 $0 $0 $1 $1 3Q22 4Q22 1Q23 2Q23 3Q23 Net Charge Offs (Recoveries)

28 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Fully Diluted Tangible Book Value 1 Misc includes items such as, but not limited to, changes related to stock grants and share count • Existing interest rate swaps hedging impact of unrealized losses in AFS Securities portfolio: ‒ AFS Securities $(8.2) million ‒ Interest Rate Swaps $6.7 million • $4.9 million 1/1/23 CECL adjustment 1 2023 TBV / Share Walk $30.51 $32.55 $3.58 $0.60 $0.17 $0.63 $0.13 2022 Net Income Dividends AOCI CECL 1/1 Misc 3Q23

29 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Capital Ratios1 9.88% 9.22% 9.41% 9.60% 5% 4Q22 1Q23 2Q23 3Q23 Tier 1 Leverage Ratio Bankwell Bank Well Capitalized 1 Current period ratios are estimates pending FDIC call report filing 2 Consolidated ratio 10.28% 10.17% 10.34% 10.82% CET1 6.5% Tier 1 8% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% 4Q22 1Q23 2Q23 3Q23 Tier 1 / CET 1 Capital Ratio Bankwell Bank Well Capitalized 11.07% 11.16% 11.41% 11.86% 10% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% 13.00% 4Q22 1Q23 2Q23 3Q23 Total Risk-Based Capital Ratio Bankwell Bank Well Capitalized Additional 3Q23 ratios: • 7.86% TCE Ratio2 • 404% CRE Concentration Ratio • 58% Construction Concentration Ratio • 122% Double Leverage Ratio

BWFG | LISTED | NASDAQ History & Overview

31 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Bankwell operates in an attractive core market: • Second most affluent MSA in the Nation in per capita personal income (PCPI)2 • 4 of the top 25 wealthiest towns in the U.S.3 • MSA ranked 11th most educated overall, tied for 5th with the highest percentage of bachelors degree holders4 • Headquarters of 9 Fortune 500 companies5 • Home to two of the largest hedge funds in the U.S. • $27 billion total AUM managed by 68 firms with $1 billion or less in AUM6 • 381 thousand housing units with a median value of owner-occupied units of $433 thousand7 ̶ In addition, New Haven County has 371 thousand housing units with a median value of owner-occupied units of $252 thousand7 1 Source: S&P Global Market Intelligence’s Branch Competitors & Pricing Report as of 6/30/22, excluding global money center banks (tickers BAC, WFC, JPM, TD & C) 2 Source: Bureau of Economic Analysis’ Metropolitan Area Table, contained within the Personal Income by County & Metropolitan Area, 2021 news release 11/16/22 3 Source: Bloomberg: 2020 Richest Places 4 Source: WalletHub: Most & Least Educated Cities in America, 7/18/22 5 Source: Fortune.com: 2023 Fortune 500 6 Source: US News and World Report 7 Source: US Census Bureau QuickFacts (2021 data) Branches (9) Fairfield County Profile • Connecticut-based $3.2 billion commercial bank • 9 branches in Fairfield & New Haven Counties • $204 million deposits per branch; one of the highest in Fairfield & New Haven Counties1

32 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Financial Snapshot 2018 2019 2020 2021 2022 3Q23 YTD Total assets $1,873,665 $1,882,182 $2,253,747 $2,456,264 $3,252,449 $3,249,776 Net loans $1,586,775 $1,588,840 $1,601,672 $1,875,167 $2,646,384 $2,735,242 Loan-to-deposit ratio 106.4% 107.1% 87.9% 88.8% 95.2% 99.7% Return on average assets 0.94% 0.97% 0.28% 1.17% 1.44% 1.16% Efficiency ratio1 59.2% 60.2% 73.9% 53.9% 45.4% 49.4% Non-interest expense / avg. assets 1.93% 1.90% 2.03% 1.75% 1.71% 1.54% Net interest margin 3.18% 3.03% 2.77% 3.17% 3.78% 3.04% Total capital to risk weighted assets 12.50% 13.35% 12.28% 12.00% 11.07% 11.86% Tangible common equity ratio1 9.16% 9.56% 7.73% 8.13% 7.26% 7.86% Return on average equity 10.19% 10.20% 3.35% 13.86% 16.72% 15.16% Fully diluted tangible book value per share1 $21.85 $22.82 $21.96 $25.55 $30.51 $32.55 Net interest income $56,326 $53,761 $54,835 $67,886 $94,743 $72,223 Pre-tax, pre-provision net revenue1 $24,593 $23,379 $14,907 $33,803 $53,420 $38,399 Net income $17,433 $18,216 $5,904 $26,586 $37,429 $28,139 EPS (fully diluted) $2.21 $2.31 $0.75 $3.36 $4.79 $3.58 1 A non-GAAP metric Dollars in thousands, except per share data

33 BWFG LISTED NASDAQ BWFG LISTED NASDAQ Name Years Experience Selected Professional Biography Christopher Gruseke Chief Executive Officer Director (since 2015) 30+ Mr. Gruseke was a founding investor and director of Bankwell Financial Group’s predecessors, BNC Financial Group, Inc., and The Bank of New Canaan. He brings more than 25 years of capital markets, operations, sales and finance experience to his role at the Company. Most recently, he was a member of the Executive Committee at CRT Capital, a Stamford, Connecticut-based broker/dealer. He also served as Co-Chief Operating Officer and a member of the Board of Greenwich Capital Markets. Mr. Gruseke earned a B.A. from Williams College and an M.S. from the Stern School of Business at New York University. Christine A. Chivily Chief Credit Officer (since 2013) 40+ Ms. Chivily has over 40 years of experience in banking and real estate finance. She previously served in a risk management role for the CRE and C&I loan portfolios at People's United Bank. Her prior experience also includes five years as Director of Freddie Mac’s New England region for multifamily properties and 11 years as Senior Credit Officer at RBS Greenwich Capital. She also has over 10 years of combined experience in lending, loan administration and workouts at other various banking institutions. Ms. Chivily received her B.A. from Mt. Holyoke College. Ryan J. Hildebrand Chief Innovation Officer (since 2023) 20+ Mr. Hildebrand has over 20 years of experience in fintech and banking. He led business units at Cross River Bank and LSBX, driving increased deposits and fee income. He founded Seed, a pioneering challenger bank acquired by Cross River. Previously, he served as Head of Finance and Strategy at Simple, the first consumer challenger bank, and held positions at Umpqua Bank and PricewaterhouseCoopers. Matthew McNeill Chief Banking Officer (since 2020) 20+ Mr. McNeill has more than 20 years of experience in Commercial Banking. He most recently served as Head of Commercial Lending at Metropolitan Commercial Bank. During his 8 years at Metropolitan Commercial Bank the bank grew its lending assets from $400 million to over $3 billion. Mr. McNeill has additionally held lending roles at HSBC Bank US and Banco Santander. Mr. McNeill has also served as Managing Partner at American Real Estate Lending; a Commercial Real Estate finance company. Courtney E. Sacchetti Chief Financial Officer (since 2023) 20+ Ms. Sacchetti has more than 20 years experience in Financial Services. She most recently served as Director of Financial Planning & Analysis for the Company for 6 years. She began her career at GE Capital in the Financial Management Program (FMP) and held various finance and regulatory positions of increasing responsibility over her 18-year career at GE Capital. Ms. Sacchetti earned a B.A. and an M.B.A. from Union College. Experienced Leadership Team

BWFG | LISTED | NASDAQ Thank You & Questions

Cover	Apr. 26, 2023
Cover [Abstract]
Document Type	8-K
Document Period End Date	Oct. 25, 2023
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