Sun. Nov 17th, 2019

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Current Movement: Bankwell Financial Group, Inc. (NASDAQ: BWFG)

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Bankwell Financial Group, Inc. (NASDAQ: BWFG) recently stated GAAP net income of $4.10M or $0.520 for each share for the 3rd-quarter of 2k19, as compared to $4.90M or $0.620 for each share for the similar duration in 2k18.

The Company’s Board of Directors declared a $0.130 for each share cash dividend, payable November 25, 2k19 to shareholders of record on November 15, 2k19.

3rd-Quarter 2k19 Highlights:

  • 3rd-quarter diluted earnings for each share were $0.520, a decline of 16.00 percent contrast to the 3rd-quarter of 2k18.
  • Total noninterest income was $1.60M for the 3rd-quarter of 2k19 or 11.00 percent of total revenue.
  • Return on average assets for the nine months finished September 30, 2k19 totaled 1.050 percent contrast to 1.030 percent for the similar duration in 2k18.
  • Return on average tangible common equity for the 3rd-quarter of 2k19 totaled 9.260 percent and totaled 11.240 percent for the nine months finished September 30, 2k19.
  • Total gross loans were $1.60B for the 3rd-quarter of 2k19.
  • The allowance for loan losses was $13.20M and represents 0.840 percent of total loans.
  • Investment securities totaled $105.50M and represent 6.0 percent of total assets.
  • Total deposits were $1.50B for the 3rd-quarter of 2k19.
  • Noninterest-bearing deposits totaled $178.70M for the 3rd-quarter of 2k19, up 11.00 percent when contrast to the 2nd-quarter of 2k19, mainly because of successful treasury administration efforts.
  • The tangible common equity ratio and tangible book value for each share were 9.330 percent and $22.340, respectively.
  • The efficiency ratio was 58.30 percent for the nine months finished September 30, 2k19 contrast to 59.60 percent for the similar duration in 2k18.
  • Tax equivalent net interest margin was 2.960 percent for the 3rd-quarter of 2k19 and 3.070 percent for the nine months finished September 30, 2k19.

Earnings and Performance

Revenues (net interest income plus noninterest income) for the quarter finished September 30, 2k19 were $14.60M, a decline of 4.0 percent contrast to the quarter finished September 30, 2k18. Revenues for the nine months finished September 30, 2k19 were $45.10M, as compared to $45.20 for the nine months finished September 30, 2k18. The decline in revenues for the quarter and nine months finished September 30, 2k19 was mainly because of a boost in the cost of interest-bearing deposits and lower loan balances, when contrast to the similar durations in 2k18. The decline in revenues was partially offset by fees recognized from elevated loan prepayments, inclines in gains and fees from the sales of loans and fees associated with loan-related interest rate swaps. Prepayment fees totaled $0.50M for the quarter finished September 30, 2k19 contrast to $40.00k for a similar duration in 2k18. Prepayment fees totaled $2.60M for the nine months finished September 30, 2k19 contrast to $0.30M for a similar duration in 2k18.

Net income for the quarter finished September 30, 2k19 was $4.10M, as compared to $4.90M for the quarter finished September 30, 2k18, a decline of 16.00 percent. Net income for the nine months finished September 30, 2k19 was $14.70M, as compared to $14.20M for the nine months finished September 30, 2k18, a boost of 4.00 percent. Net income for the quarter finished September 30, 2k19 was negatively influenced by the aforementioned incline in the cost of interest-bearing deposits and reduced revenue from lower loan balances. For the nine months ending September 30, 2k19, fees recognized from elevated loan prepayments in addition to the gains and fees from loans sales and loan-related interest rate swaps more than offset the impact of the incline in the cost of interest-bearing deposits.

Basic and diluted earnings for each share were each $0.520 for the quarter finished September 30, 2k19 contrast to $0.620 for the quarter finished September 30, 2k18. Basic and diluted earnings for each share were $1.880 and $1.870, respectively, for the nine months finished September 30, 2k19 contrast to basic and diluted earnings for each share of $1.810 and $1.800, respectively, for the nine months finished September 30, 2k18.

The Company’s efficiency ratios for the quarters finished September 30, 2k19 and September 30, 2k18 were 58.90 percent and 58.60 percent, respectively. The Company’s efficiency ratios for the nine months finished September 30, 2k19 and September 30, 2k18 were 58.30 percent and 59.60 percent, respectively. In addition to the formerly described changes in revenue, the efficiency ratio was also influenced by a reduction in noninterest cost from continued disciplined cost administration.

The net interest margin (fully taxable equivalent basis) for the quarter finished September 30, 2k19 and 2k18 was 2.960 percent and 3.210 percent, respectively. The net interest margin for the nine months finished September 30, 2k19 and 2k18 was 3.070 percent and 3.170 percent, respectively. The decline in the net interest margin for the three and nine months finished September 30, 2k19 contrast to the similar durations in 2k18 was because of higher rates on interest-bearing deposits, partially offset by incremental fees from loan prepayments.

Financial Condition

Assets totaled $1.860B at September 30, 2k19, in contrast to assets of $1.870B on December 31, 2k18. The decline in assets is driven by a reduction in gross loans to $1.560B on September 30, 2k19 as compared to $1.600B at December 31, 2k18. Deposits totalled $1.470B, contrast to $1.500B at December 31, 2k18. The decline in deposits was mainly driven by a reduction in wholesale funding.

Capital

Shareholders’ equity totaled $176.00M as of September 30, 2k19, a boost of $1.80M contrast to December 31, 2k18, mainly a result of net income for the nine months finished September 30, 2k19 of $14.70M. The incline was partially offset by a $10.20M unfavorable impact to accumulated other comprehensive income driven by fair value marks related to hedge positions involving interest rate swaps, in addition to dividends paid of $3.10M and common stock repurchases of $1.00M. The marks on the interest rate swaps are driven by declining market interest rates. The Company’s interest rate swaps are mainly used to hedge interest rate risk in relation to its funding sources. The Company’s current derivative positions will cause a decline to other comprehensive income in a falling interest rate environment and a boost in a rising interest rate environment. As of September 30, 2k19, the tangible common equity ratio and tangible book value for each share were 9.330 percent and $22.340, respectively.

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