Bankwell Financial Group (BWFG) Declares $0.12 Quarterly Dividend; 1.5% Yield

Bankwell Financial Group (NASDAQ: BWFG) declared a quarterly dividend of $0.12 per share, or $0.48 annualized.

The dividend will be payable on May 25, 2018, to stockholders of record on May 15, 2018, with an ex-dividend date of May 14, 2018.

The annual yield on the dividend is 1.5 percent.

“We are happy to announce year over year earnings growth of 24% for the first quarter of 2018. Acknowledging that the lower corporate tax rate played a significant role, Bankwell nevertheless achieved solid organic growth in the face of a more competitive lending environment and several non-recurring charges.”

“The heightened volatility experienced across the capital markets during the first quarter acted as a headwind against the lending environment in general. Further, while too many banking institutions have seemingly demonstrated how recent tax cuts will impact their business models, Bankwell chose not to participate in a race to the bottom in lending spreads. We will continue our disciplined practice toward lending rates as we have never chosen to compete on price. Thus far, our pipeline suggests improved volume at more favorable spreads for the second quarter.”

“We note that our efficiency ratio took an uncharacteristic increase this quarter versus Q1’17. Several factors contributed to this increase: 1) non-recurring expenses, such as a $363 thousand increase in professional fees, as well as approximately $300 thousand in loan origination costs, which could not be deferred due to lower loan volume, 2) forgone interest income on approximately $14 million in new non-performing loans (see below), and 3) planned investment in people and infrastructure, primarily geared toward deposit gathering activities.”

“The first quarter also saw an addition of approximately $14 million in non-performing loans due to two recently impaired commercial loans with balances of approximately $10 million and $4 million, respectively. We are in the process of evaluating the various pathways to repayment on these credits and will provide an update in our next quarterly release.”

“Finally, the next quarter will also see three new Bankwell branches open within our footprint in Fairfield County, CT. We are excited to bring the Bankwell brand to these towns and expect those new customers will agree with their neighboring communities who have just voted Bankwell the “#1 Bank in Fairfield County for Customer Service.”

For a dividend history and other dividend-related data on Bankwell Financial Group (BWFG) click here.

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