New Canaan-based Bankwell Financial Group reported record net income for the fourth straight quarter.
Bankwell had first-quarter net income of $8.2 million, or diluted earnings per share of $1.04, compared to net income of $5.7 million, or diluted earnings per share of $0.71, in the first quarter of 2021.
Bankwell Financial Group President and CEO, Christopher R. Gruseke, said in the bank’s first-quarter earnings statement that the bank had achieved record levels of return on average assets and return on average equity of 1.35 percent and 16.05 percent, respectively.
“Our team has begun the year with continued high performance,” Gruseke said. “Loan balances grew by almost 5 percent compared to year-end 2021 and our financial results for the quarter were exceptionally strong.”
Bankwell had total assets in the first quarter of $2.5 billion compared to $2.46 billion on Dec. 31. The bank attributed the increase primarily to loan growth, which was partially offset by a decrease in excess liquidity.
Total gross loans were $2 billion, up $90.4 million from the end of 2021. Total deposits were $2.2 billion compared to $2.1 billion at the end of the fourth quarter.
The first-quarter net interest margin was 3.30 percent compared to 2.74 percent in the first quarter of 2021. The bank said the increase was due to lower interest expense from a decrease in rates on interest-bearing deposits, a greater proportion of noninterest-bearing deposits and some increase in overall loan yields.
“Credit quality remains high and our loan pipeline is as vibrant as it has been for the last several quarters,” Gruseke said. “We reaffirm prior guidance of year over year net interest income growth of 12-14 percent for 2022.”
The bank also completed a system upgrade during the first quarter.
“On the operational front, we have just completed a successful conversion of our core data processing system,” Gruseke said. “This is the second major system conversion the team has successfully executed within the past twelve months as we invested in a new online banking platform during the 2nd half of 2021. We have also begun a systematic review of every operational process at the Bank. This process mapping project will help to identify opportunities to employ further technological solutions and increase efficiencies through the organization.”
