Research
BWFG Q1: Can Net Interest Margin Hold Above 3% as Rate Cuts Loom?
Bankwell Financial Group's Q1 2026 results show net interest margin compressing to 2.95% (-29 bps YoY) as deposit repricing pressure outpaces asset yield gains. Deposits grew 3.0% YoY to $1.75B while nonperforming assets ratio rose to 0.52% from 0.31%, signaling credit normalization. The quarter confirms dual pressure on sub-$2B regional banks: margin defense and rising credit costs.