Bankwell Financial Q3 revenue rises as asset quality improves

Overview

• U.S. commercial bank's Q3 revenue and adjusted EPS rose yr/yr

• Results include $3 mln in core conversion costs

• Nonperforming assets declined, asset quality improved

Outlook

• Bankwell sees 2026 net interest income of $119 mln to $121 mln

• Company expects 2026 non-interest income of $14 mln to $15 mln

• Bankwell maintains 2026 loan growth outlook of 5% to 7%

Result Drivers

• NET INTEREST MARGIN EXPANSION - Co said higher earning-asset yields and flat funding costs drove net interest margin growth to 3.71%

• SBA LOAN SALES - Co said gains from SBA loan sales boosted noninterest income in the quarter

• ASSET QUALITY IMPROVEMENT - Co said nonperforming loans declined due to the sale of a modified commercial real estate loan

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Bankwell Financial Group Inc is $61.50, about 8.1% below its October 28 closing price of $66.89

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Oct 27 - First Financial Bancorp Q3 EPS rises 11% to record

• Oct 27 - First Financial Q3 profit jumps year-over-year on higher interest margin

• Oct 26 - German American Bancorp Q3 net income rises on higher yields and margin expansion

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)