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Bankwell Financial Q3 revenue rises as asset quality improves

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$35.30 mln

$33.50 mln (2 Analysts)

Q3 Adjusted EPS

Beat

$1.86

$1.44 (2 Analysts)

Q3 EPS

$1.58

Q3 Net Income

$12.70 mln

Q3 Net Interest Margin

3.71%


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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