Bankwell reported GAAP net income of $9.1 million for Q4 2025, equivalent to $1.15 per diluted share, down from $10.1 million, or $1.27 per share, in Q3. On an operating basis (non-GAAP), net income was $10.7 million, or $1.36 per share, reflecting a one-time $1.5 million state tax adjustment primarily tied to finalized filings and prior-year estimates. Return on average assets stood at 1.11% (operating: 1.29%), and return on average tangible shareholders’ equity was 12.31% (operating: 14.32%). The efficiency ratio improved to 50.8%, compared with 51.4% in the prior quarter.

During Q4, net loans grew by $121.9 million, a 5.0% increase year-over-year, driven by strong commercial and SBA originations. Nonperforming assets fell to 0.49% of total assets from 0.56% in Q3, aided by the sale of an OREO property for $1.3 million and collection on an SBA guarantee of $0.4 million. The allowance for credit losses on loans rose modestly to $30.7 million, covering 1.08% of total loans.

Net interest margin expanded by 6 basis points to 3.40% in Q4, as earning asset yields moderated by 11 basis points to 6.23% and deposit costs declined by 15 basis points to 3.15%. Average low-cost deposits increased by $21.6 million sequentially and by $85.9 million year-over-year, reflecting improved deposit pricing and a more stable funding mix. Pre-tax, pre-provision net revenue rose 7.2% to $14.9 million.

Management projects loan growth of 4–5% in 2026, net interest income of $111–112 million and noninterest income of $11–12 million. Noninterest expense is expected to be $64–65 million, supporting ongoing investments in technology and personnel. Guidance implies an efficiency ratio of approximately 51–53%. The bank plans to maintain disciplined credit standards while building non-interest income through enhanced SBA lending and digital initiatives.