Overview

* Bankwell Financial ( BWFG ) Q2 revenue beats analyst expectations, driven by reduced funding costs

* Net income for Q2 rises to $9.1 mln, reflecting improved profitability

* Company declares $0.20 per share dividend, updates 2025 guidance for income growth

Outlook

* Bankwell updates 2025 net interest income guidance to $97 - $98 mln

* Company reiterates 2025 noninterest income guidance of $7 - $8 mln

* Bankwell increases 2025 noninterest expense guidance to $58 - $59 mln

* Company anticipates deposit growth boost from new banking teams in 2026

Result Drivers

* NET INTEREST MARGIN - Increased to 3.10% due to improved funding costs and strategic repricing of deposits

* SBA LOAN GROWTH - SBA loan originations contributed to $24 mln net loan growth and $1.5 mln in non-interest income

* DEPOSIT STRATEGY - Addition of five deposit-focused private banking teams expected to boost deposit growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $25.95 $24.30

Revenue mln mln (3

Analysts

)

Q2 EPS $1.15

Q2 Net $9.10

Income mln

Q2 Net $23.94

Interest mln

Income

Q2 Net 3.1%

Interest

Margin

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 ( BWFG ) is $40.25, about 7.1% above its July 25 closing price of $37.39

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

(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.)