Bankwell Financial Group reported GAAP net income of $9.1 million for Q4 2025, translating to $1.15 per diluted share, compared with $10.1 million, or $1.27 per share, in Q3. On an operating basis, which excludes a $1.5 million one-time state tax adjustment, operating net income reached $10.7 million, or $1.36 per share. Return on average assets stood at 1.11% (1.29% operating) and return on tangible equity was 12.31% (14.32% operating), reflecting solid profitability despite the tax headwind.

During the quarter, BWFG generated net loan growth of $121.9 million, a 5.0% increase year-over-year to $2.82 billion. Nonperforming assets fell to 0.49% of total assets, down from 0.56%, driven by the sale of an OREO property for $1.3 million and $0.4 million of SBA guarantee collections. Net charge-offs remained negligible at 0.00% of average loans, underscoring disciplined credit management.

The bank’s net interest margin expanded by six basis points quarter-over-quarter to 3.40%, as earning asset yields moderated by 11 basis points to 6.23% while deposit costs declined 15 basis points to 3.15%. Average low-cost deposits rose by $21.6 million sequentially and $85.9 million year-over-year, enhancing funding efficiency. Pre-tax, pre-provision net revenue increased 7.2% to $14.9 million, driven by lower funding costs and higher gains on SBA loan sales, which rose to $2.2 million from $1.4 million.

Management provided guidance for 2026, forecasting loan growth of 4–5% and net interest income of $111–112 million. Non-interest income is expected to climb to $11–12 million, while non-interest expense is projected at $64–65 million, implying an efficiency ratio of approximately 51–53%, improved from 54.1% in 2025. The board declared a $0.20 per share quarterly dividend, payable February 20, 2026 to shareholders of record on February 10, 2026.