Bankwell Financial Group, Inc. Q1 FY2026 earnings call

Chris Grisecki mentioned the solid start to 2026 with strong earnings. Loan growth was positive with $190 million originations. Core deposits showed meaningful growth. Net interest margin was affected by asset repricing but offset by deposit cost improvement. Non-interest income was a contributor. Credit quality remained healthy. The bank opened its first full-service branch in Brooklyn.

Loan growth remained positive with net loan growth of $27 million during the quarter, including $34 million of SBA production. Core deposits increased by $113 million sequentially, with $39 million from low-cost deposits, including $24 million growth in analyzed checking balances. Net interest margin was 328 basis points. Non-interest income totaled $3.3 million, including $2.4 million of SBA gain on sale income.

Full-year net interest income guidance is $111 to $112 million. Raised full-year non-interest income guidance to $12 to $13 million.

Deposit competition is very intense. Asset repricing and rate environment changes could impact net interest margin.

Q: About deposit competition and SBA business, A: Deposit competition is intense but core deposits grew, SBA business has growth potential.

Q: About Brooklyn office, A: Mainly for deposit gathering, little lending.

Q: About loan pricing and buybacks, A: New origination yields 7.5%, buybacks based on CET1 ratio