Bankwell Financial : Third Quarter Investor Presentation 2023

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3Q23 Investor Presentation

October 25th, 2023

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Safe Harbor

This presentation may contain certain forward-looking statements about Bankwell Financial Group, Inc. (the "Company"). Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to

historical or current facts. They often include words such as "believe," "expect," "would,"

"should," "could," or "may." Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the banking industry or

securities markets, and legislative and regulatory changes that could adversely affect the

business in which the Company and its subsidiaries are engaged.

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LISTED NASDAQ	Table of Contents
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• 3Q23 Performance
• Deposits & Liquidity
• Loans
• Credit Quality & Capital
• Bankwell History & Overview

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3Q23 Performance

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3Q23 Summary

• 3Q23 Net Income of $9.8 million, or $1.25 earnings per share ("EPS")
• Return on Average Assets ("ROAA") and Return on Average Equity ("ROAE") were 1.19% and 15.19%, respectively for the quarter, and 1.16% and 15.16% year-to-date
• Pre-tax,Pre-provision Net Revenue ("PPNR")1 of $11.3 million, or 1.37% PPNR ROAA for the quarter
• 1.48% Non-interest Expense as a percent of Average Assets for the quarter and 1.54% year-to-date
• Year-to-datenet interest margin ("NIM") of 3.04%; 3Q23 NIM of 2.85% & September NIM of 2.68%
• Year-to-datenet loan growth of $96 million, with new fundings at a weighted average yield of 7.23%
• Year-to-date,total deposits decreased $32 million, with brokered deposits down $75 million
• $1.7 billion immediately available liquidity providing more than 2X coverage of uninsured deposits
• • 25% uninsured deposits; insured deposits include 71% FDIC-insured & 4% insured by FHLB SBLOCs
• $32.55 Tangible Book Value; 15% CAGR since year-end 2020 (including one-time CECL impact)
• AFS securities valuations hedged with interest rate swaps; net AOCI impact of $(1.5) million
• The Bank remains well capitalized with an 11.86% Total Capital ratio and 7.86% Tangible Common Equity

1 Pre-tax,pre-provision net revenue per share is a non-GAAP metric & excludes provision for loan losses and income tax expense	5
2 As of October 24, 2023

3 HTM securities not recorded in Book Value

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3Q23 Results

QTRYTD

	•	Net Income	$9.8 million	$28.1 million
Profitability	•	PPNR	$11.3 million	$38.4 million
•	Return on Average Assets	1.19%	1.16%
	•	PPNR / Average Assets	1.37%	1.58%
	•	Return on Average Equity	15.19%	15.16%
	• $2.8 billion of gross loans
Balance Sheet	•	$2.8 billion of deposits
	•	1.06% ACL-Loans

	•	Dividend of $0.20 per share paid	Tier 1 Leverage1	9.60%
Capital	•	$32.55 Fully Diluted Tangible Book Value	Tier1/CET1 / RWA1	10.82%
Total Capital / RWA1	11.86%
	•	Well Capitalized1,2

1 Ratios presented represent Bank ratios; presented ratios are preliminary, subject to finalization of the FDIC Call Report

2 Bankwell meets Adequate + buffer standard, which exceeds Well Capitalized thresholds

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Dollars in millions, except per share data

3Q23 Consolidated Financial Statements

Linked Quarter

Income Statement	3Q23	2Q23	Var1
Total Interest Income	$48.3	$46.5	$1.8
Total Interest Expense	$25.6	$22.5	$(3.1)
Net Interest Income	$22.7	$24.0	$(1.3)
Non-Interest Income	$0.8	$1.4	$(0.6)
Non-Interest Expense	$12.2	$12.7	$0.5
Pre-Tax,Pre-Provision Net Revenue $11.3	$12.8	$(1.5)
(Credit) provision for Credit Losses $(1.6)	$2.6	$4.2
Pre-Tax Income	$12.9	$10.2	$2.7
Income Tax Expense	$3.1	$2.2	$(0.9)
Reported Net Income	$9.8	$8.0	$1.8
EPS	$1.25	$1.02	$0.23
Pre-Tax,Pre-Provision
Net Revenue per share2	$1.48	$1.68	$(0.20)

Balance Sheet	3Q23	2Q23	Var1
Cash & Cash Equivalents	$258	$262	$(4)
Investment Securities	$116	$118	$(2)
Loans Receivable, net	$2,735	$2,737	$(2)
All Other Assets	$141	$136	$5
Total Assets	$3,250	$3,253	$(3)
Total Deposits	$2,769	$2,789	$(20)
Total Borrowings	$159	$159	$0
Other Liabilities	$64	$56	$8
Total Liabilities	$2,992	$3,004	$(12)
Equity	$258	$249	$9
Total Liabilities & Equity	$3,250	$3,253	$(3)

1 Variances are rounded based on actual whole dollar amounts	7
2 Pre-tax,pre-provision net revenue per share is a non-GAAP metric & excludes provision for loan losses and income tax expense

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YTD Consolidated Income Statement

Prior Year

Income Statement	3Q 2023	3Q 2022	Var1
Total Interest Income	$139.1	$78.4	$60.7
Total Interest Expense	$66.8	$10.4	$(56.4)
Net Interest Income	$72.2	$67.9	$4.3
Non-Interest Income	$3.7	$2.5	$1.2
Non-Interest Expense	$37.5	$31.9	$(5.6)
Pre-Tax,Pre-Provision Net Revenue	$38.4	$38.6	$(0.2)
Provision for Loan Losses	$1.8	$1.2	$(0.6)
Pre-Tax Income	$36.6	$37.4	$(0.8)
Income Tax Expense	$8.4	$8.0	$(0.4)
Reported Net Income	$28.1	$29.4	$(1.3)
EPS	$3.58	$3.75	$(0.17)
Pre-Tax,Pre-Provision
Net Revenue per share2	$5.02	$5.03	$(0.01)

1 Variances are rounded based on actual whole dollar amounts
2 Pre-tax,pre-provision net revenue per share is a non-GAAP metric & excludes provision for loan losses and income tax expense	8

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Diluted EPS

$4.79

$3.36$3.58

$2.21 $2.31

$0.75

2018

2019

2020

2021

2022

3Q23 YTD

Return on Average Equity

16.72%

Performance Trends

Fully Diluted Tangible Book Value

$32.55

$30.51

$25.55

$21.85 $22.82 $21.96

					3Q231
2018	2019	2020	2021	2022

Return on Average Assets

1.44%

13.86%

10.19% 10.20%

3.35%

15.16%

1.17%1.16%

0.94% 0.97%

0.28%

2018

2019

2020

2021

2022

3Q23 YTD

1 Includes $0.63 impact for the 1/1/23 CECL adjustment

2018

2019

2020

2021

2022

3Q23 YTD

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Efficiency Trends

80.0%				Efficiency Ratio	1
		73.9%
						2.40%
70.0%				Non-interest Expense / Average Assets
59.2%	60.2%						2.20%
	2.03%
60.0%
		53.9%
1.93%
1.90%					49.4%	2.00%
50.0%				45.4%
			1.75%	1.71%			1.80%
40.0%
						1.54%	1.60%
30.0%
							1.40%
20.0%
10.0%							1.20%
0.0%							1.00%
2018	2019	2020	2021	2022		3Q23 YTD

1 A non-GAAP metric

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