Overview

• U.S. commercial bank's Q2 revenue rose and beat analyst expectations

• Q2 diluted EPS increased to $1.52 from $1.41 in Q1

• Company raised full-year net interest income and loan growth guidance

Outlook

• Bankwell raises 2026 net interest income guidance to $115-$117 mln

• Company lifts 2026 loan growth outlook to 5%-7%

• Bankwell increases 2026 non-interest expense guidance to $65-$67 mln

Result Drivers

• CORE DEPOSIT GROWTH - Co said $128 mln in core deposit growth funded loan production and reduced wholesale funding needs

• NET INTEREST MARGIN EXPANSION - Net interest margin rose 30 bps to 3.58% due to higher yields on new loans and lower deposit costs

• EXPENSE MANAGEMENT - Noninterest expense declined from Q1, mainly due to lower salaries and benefits after seasonal compensation costs

Company press release: ID:nBw3YxBQLa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Beat	$32.78 mln	$30.63 mln (3 Analysts)
Q2 EPS		$1.52
Q2 Net Income		$12.40 mln
Q2 Net Interest Income		$29.50 mln

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 $56.50, about 5% below its July 22 closing price of $59.50

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 23 - Civista Bancshares Q2 profit rises 30%, interest margin expands

• July 23 - Dime Community Bancshares Q2 revenue hits record on loan growth

• July 23 - ConnectOne Bancorp Q2 adjusted EPS beats estimates on loan, deposit growth

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