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Bankwell Financial Group Reports Operating Results for the First Quarter, Declares Second Quarter Dividend

businesswire.com

Bankwell Financial Group Reports Operating Results for the First Quarter, Declares Second Quarter Dividend NEW CANAAN, Conn.--( BUSINESS WIRE)--Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $11.3 million, or $1.41 per share for the first quarter of 2026, versus $9.1 million, or $1.15 per share, for the fourth quarter of 2025. The Company's Board of Directors declared a $0.20 per share cash dividend, payable May 19, 2026 to shareholders of record on May 8, 2026.

Discussion of Outlook; Bankwell Financial Group Chief Executive Officer, Christopher R. Gruseke:

"We generated outstanding first quarter results while advancing our strategic priorities. Profitability increased during the quarter, reflected in a return on average assets of 1.35%, and the Company grew core deposits by $113 million sequentially. Our SBA division continues to execute measured, profitable growth, with originations this quarter of $34 million, and we have continued to improve our asset and liability mix as floating rate loans now comprise 42% of the loan portfolio.

Results for the quarter include a sequential increase to the Company’s non-interest expense of approximately $1.4 million. This increase reflects the timing of some expense recognition, and we believe current trends support our non-interest expense guidance previously provided of $64 to $65 million for the full year. We also affirm prior guidance regarding Net Interest Income and loan growth for 2026. Due to an improved outlook for SBA gains on sale and other commercial fees, however, we are increasing our guidance for Non-Interest Income to a range of $12 to $13 million.

As we enter the remainder of the year, we are confident in our credit quality and are well positioned to reduce NPAs in the quarters ahead."

Key Points for First Quarter and Bankwell’s Outlook

Core Deposit Growth Funds Loan Growth and Reduces Wholesale Reliance.

Funding Improvements Partially Offset Lower Portfolio Yields in Net Interest Margin.

Advancing Strategic Priorities.

(1) Wholesale Ratio is a Non-GAAP Financial Measure and is calculated as brokered deposits and FHLB borrowings divided by total assets. Refer to the "Non-GAAP Financial Measures" section of this document for additional detail.

First Quarter 2026 Financial Highlights and Key Performance Indicators (KPIs):

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

Return on average assets (1)(6)

1.35

%

1.11

%

1.24

%

1.14

%

0.86

%

Pre-tax, pre-provision net revenue return on average assets (1)(6)

1.60

%

1.80

%

1.70

%

1.43

%

1.18

%

Return on average shareholders' equity (1)(6)

14.88

%

12.20

%

13.84

%

12.98

%

10.16

%

Return on average tangible shareholders' equity (1)(6)

15.00

%

12.31

%

13.96

%

13.10

%

10.25

%

Net Interest Margin (1)(6)(7)

3.28

%

3.40

%

3.34

%

3.10

%

2.81

%

Efficiency Ratio (1)(3)

55.8

%

50.8

%

51.4

%

56.1

%

59.9

%

Noninterest expense to average assets (1)(6)

2.03

%

1.87

%

1.80

%

1.83

%

1.76

%

Net loan (recoveries) charge-offs as a percentage of average loans (1)(6)

0.01

%

0.00

%

(0.01

)%

0.00

%

0.00

%

Dividend payout (1)(4)

14.18

%

17.39

%

15.75

%

17.39

%

22.99

%

Fully diluted tangible book value per common share (1)(2)

$

38.79

$

37.84

$

36.84

$

35.65

$

34.56

Total capital to risk-weighted assets (1)(5)

12.99

%

12.94

%

13.48

%

13.28

%

13.22

%

Total common equity tier 1 capital to risk-weighted assets (1)(5)

11.96

%

11.87

%

12.39

%

12.20

%

12.11

%

Tier I Capital to Average Assets (1)(5)

10.31

%

10.55

%

10.71

%

10.57

%

10.13

%

Tangible common equity to tangible assets (1)(2)

9.17

%

8.90

%

8.95

%

8.68

%

8.57

%

Earnings per common share - diluted

$

1.41

$

1.15

$

1.27

$

1.15

$

0.87

Common shares issued and outstanding

7,973,180

7,899,943

7,877,443

7,873,387

7,888,013

(1)

Non-GAAP Financial Measure, refer to the "Non-GAAP Financial Measures" section of this document for additional detail.

(2)

Refer to the "Reconciliation of GAAP to Non-GAAP Measures" section of this document for additional detail.

(3)

Efficiency ratio is defined as noninterest expense, less other real estate owned expenses and amortization of intangible assets, divided by our operating revenue, which is equal to net interest income plus noninterest income excluding gains and losses on sales of securities and gains and losses on other real estate owned. In our judgment, the adjustments made to operating revenue allow investors and analysts to better assess our operating expenses in relation to our core operating revenue by removing the volatility that is associated with certain one-time items and other discrete items that are unrelated to our core business.

(4)

The dividend payout ratio is calculated by dividing dividends per share by earnings per share.

(5)

Represents Bank ratios. Current period capital ratios are preliminary subject to finalization of the FDIC Call Report.

(6)

Return on average assets is calculated by dividing annualized net income by average assets. Pre-tax, pre-provision net revenue return on average is calculated by dividing PPNR (calculated as set forth in the "Pre-Tax, Pre-Provision Net Revenue (PPNR)" section of this document) by average assets. Return on average shareholders' equity is calculated by dividing annualized net income by average shareholders' equity. Return on average tangible shareholders' equity is calculated by dividing annualized net income by average shareholders' equity less average intangible assets. Net Interest Margin is calculated by dividing average annualized net interest income by average total earning assets. Noninterest expense to average assets is calculated by dividing annualized noninterest expense by average total assets. Net loan charge-offs as a percentage of average loans is calculated by dividing net loan (charge offs) recoveries by average total loans.

(7)

Based on a fully tax equivalent basis.

Pre-Tax, Pre-Provision Net Revenue (1) ("PPNR")

PPNR for the fourth quarter ended March 31, 2026 was $13.3 million, a decrease of 10.2% from $14.9 million recognized for the fourth quarter ended December 31, 2025.

For the Quarter Ended

(Dollars in thousands)

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

Net interest income

$

26,886

$

26,946

$

25,987

$

23,936

$

22,066

Total noninterest income

3,343

3,376

2,495

2,012

1,505

Total revenues

30,229

30,322

28,482

25,948

23,571

Total noninterest expense

16,889

15,470

14,631

14,546

14,141

PPNR

$

13,340

$

14,852

$

13,851

$

11,402

$

9,430

(1) Non-GAAP Financial Measure, refer to the "Non-GAAP Financial Measures" section of this document for additional detail.

Allowance for Credit Losses - Loans ("ACL-Loans")

The ACL-Loans was $29.6 million as of March 31, 2026 compared to $30.7 million as of December 31, 2025. The ACL-Loans as a percentage of total loans was 1.03% as of March 31, 2026 compared to 1.08% as of December 31, 2025. The credit for credit losses - loans was $1.0 million for the quarter ended March 31, 2026.

Total nonperforming loans increased $2.7 million to $19.0 million as of March 31, 2026, when compared to the previous quarter. Nonperforming assets as a percentage of total assets increased to 0.56% at March 31, 2026, compared to the previous quarter's ratio of 0.49%. As of March 31, 2026, the ACL-Loans provided 155.39% coverage of total nonperforming loans.

BANKWELL FINANCIAL GROUP, INC.

ASSET QUALITY (unaudited)

(Dollars in thousands)

For the Quarter Ended

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

ACL-Loans:

Balance at beginning of period

$

30,705

$

29,984

$

29,256

$

29,485

$

29,007

Charge-offs:

Residential real estate

Commercial real estate

(67

)

Commercial business

(148

)

(14

)

(15

)

Consumer

(73

)

(46

)

(5

)

(33

)

Construction

Total charge-offs

(221

)

(60

)

(20

)

(100

)

Recoveries:

Residential real estate

Commercial real estate

5

7

272

Commercial business

15

23

92

112

4

Consumer

33

10

4

10

36

Construction

Total recoveries

53

40

368

122

40

Net loan recoveries (charge-offs)

(168

)

40

308

102

(60

)

(Credit) provision for credit losses - loans

(957

)

681

420

(331

)

538

Balance at end of period

$

29,580

$

30,705

$

29,984

$

29,256

$

29,485

As of

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

Asset quality:

Nonaccrual loans

Residential real estate

$

544

$

557

$

570

$

617

$

811

Commercial real estate

17,112

14,445

14,667

16,387

17,946

Commercial business

1,380

1,302

1,729

6,871

7,626

Construction

Consumer

Total nonaccrual loans

19,036

16,304

16,966

23,875

26,383

Other real estate owned

1,284

1,284

Total nonperforming assets

$

19,036

$

16,304

$

18,250

$

25,159

$

26,383

Nonperforming loans as a % of total loans

0.66

%

0.57

%

0.62

%

0.89

%

1.00

%

Nonperforming assets as a % of total assets

0.56

%

0.49

%

0.56

%

0.78

%

0.83

%

ACL-loans as a % of total loans

1.03

%

1.08

%

1.10

%

1.10

%

1.11

%

ACL-loans as a % of nonperforming loans

155.39

%

188.33

%

176.73

%

122.54

%

111.76

%

Total past due loans to total loans

0.62

%

0.31

%

0.76

%

0.91

%

1.08

%

Financial Condition & Capital

Assets totaled $3.4 billion at March 31, 2026, an increase of $14.0 million, or 0.4% compared to December 31, 2025. Gross loans totaled $2.9 billion at March 31, 2026, an increase of $26.5 million, or 0.9% compared to December 31, 2025. Deposits totaled $2.9 billion at March 31, 2026, an increase of $55.8 million, or 2.0% compared to December 31, 2025. Brokered deposits have decreased $44.5 million or 8.0%, when compared to December 31, 2025.

Period End Loan Composition

March 31,

2026

December 31,

2025

March 31,

2025

Current QTD

% Change

Year over Year

% Change

Residential Real Estate

$

30,128

$

33,139

$

40,089

(9.1

)%

(24.8

)%

Commercial Real Estate (1)

1,896,565

1,930,979

1,810,923

(1.8

)

4.7

Construction

155,826

153,778

188,339

1.3

(17.3

)

Total Real Estate Loans

2,082,519

2,117,896

2,039,351

(1.7

)

2.1

Commercial Business

723,272

645,321

529,000

12.1

36.7

Consumer

60,827

76,855

76,553

(20.9

)

(20.5

)

Total Loans

$

2,866,618

$

2,840,072

$

2,644,904

0.9

%

8.4

%

(1) Includes owner occupied commercial real estate of $0.8 billion at March 31, 2026, $0.8 billion at December 31, 2025, and $0.7 billion at March 31, 2025, respectively.

Period End Deposit Composition

March 31,

2026

December 31,

2025

March 31,

2025

Current QTD

% Change

Year over Year

% Change

Noninterest bearing demand

$

428,384

$

403,652

$

349,525

6.1

%

22.6

%

NOW

104,704

90,205

112,695

16.1

(7.1

)

Money Market

1,095,883

1,007,844

900,352

8.7

21.7

Savings

99,008

97,418

91,378

1.6

8.3

Time

1,157,270

1,230,362

1,296,495

(5.9

)

(10.7

)

Total Deposits

$

2,885,249

$

2,829,481

$

2,750,445

2.0

%

4.9

%

Shareholders’ equity totaled $311.9 million as of March 31, 2026, an increase of $10.4 million compared to December 31, 2025, primarily a result of year-to-date net income of $11.3 million. The increase was partially offset by dividends paid of $1.6 million.

As of March 31, 2026, the Bank's regulatory capital ratios were all above 'well capitalized' values, with total risk-based capital, common-equity tier 1 capital and leverage ratios at 12.99%, 11.96%, and 10.31%, respectively.

We recommend reading this earnings release in conjunction with the First Quarter 2026 Investor Presentation, located at https://investor.mybankwell.com/events-and-presentations/ and included as an exhibit to our April 22, 2026 Current Report on Form 8-K.

Conference Call

Bankwell will host a conference call to discuss the Company’s financial results and business outlook on April 23, 2026, at 9:00 a.m. E.T. The call will be accessible by telephone and webcast using https://investor.mybankwell.com/events-and-presentations/. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event.

About Bankwell Financial Group

Bankwell Financial Group, Inc. is the holding company for Bankwell Bank ("Bankwell"), a full-service commercial bank headquartered in New Canaan, CT. Bankwell provides businesses and professionals with a range of commercial financing solutions, including working capital lines of credit, SBA loans, acquisition financing, and commercial mortgages, along with treasury management and deposit services. Bankwell emphasizes accessibility, expertise, and responsiveness through experienced local banking teams serving its markets.

For more information about this press release, interested parties may contact Christopher R. Gruseke, Chief Executive Officer or Courtney E. Sacchetti, Executive Vice President and Chief Financial Officer of Bankwell Financial Group, Inc. at (203) 652-0166 or at ir@mybankwell.com.

For more information, visit www.mybankwell.com.

This press release may contain certain forward-looking statements about 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,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “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.

Non-GAAP Financial Measures

In addition to evaluating the Company's financial performance in accordance with U.S. generally accepted accounting principles ("GAAP"), management may evaluate certain non-GAAP financial measures, such as the efficiency ratio. A computation and reconciliation of certain non-GAAP financial measures used for these purposes is contained in the accompanying Reconciliation of GAAP to Non-GAAP Measures tables. We believe that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends and financial position. For example, the Company believes that the efficiency ratio is useful in the assessment of financial performance, including noninterest expense control. The Company believes that tangible common equity, tangible assets, tangible common equity to tangible assets, tangible common shareholders' equity, fully diluted tangible book value per common share, efficiency ratio, noninterest expense to average assets, average tangible common equity, annualized return on average tangible shareholders' equity, return on average shareholders' equity, return on average tangible shareholders' equity, pre-tax, pre-provision net revenue, net interest margin, net loan charge-offs as a percentage of average loans, pre-tax, pre-provision net revenue on average assets, wholesale ratio, and the dividend payout ratio are useful to evaluate the relative strength of the Company's performance and capital position. We utilize these measures for internal planning and forecasting purposes. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. See "Reconciliation of GAAP to Non-GAAP Measures (unaudited)".

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS (unaudited)

(Dollars in thousands)

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

ASSETS

Cash and due from banks

$

208,904

$

214,567

$

289,628

$

313,998

$

292,006

Federal funds sold

8,997

10,354

5,732

8,466

12,922

Cash and cash equivalents

217,901

224,921

295,360

322,464

304,928

Investment securities

Marketable equity securities, at fair value

2,254

2,248

2,223

2,188

2,164

Available for sale investment securities, at fair value

155,934

160,409

96,473

103,930

97,321

Held to maturity investment securities, at amortized cost

29,386

29,465

29,538

36,434

36,478

Total investment securities

187,574

192,122

128,234

142,552

135,963

Loans receivable (net of ACL-Loans of $29,580, $30,705, $29,984, $29,256, and $29,485, at March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, respectively)

2,832,678

2,804,441

2,684,016

2,635,742

2,611,495

Accrued interest receivable

16,029

16,143

15,633

14,741

15,409

Federal Home Loan Bank stock, at cost

4,207

6,207

4,951

5,051

3,583

Premises and equipment, net

20,947

21,582

22,387

23,020

22,978

Bank-owned life insurance

54,566

54,207

53,846

53,488

53,136

Goodwill

2,589

2,589

2,589

2,589

2,589

Deferred income taxes, net

11,436

11,356

9,027

9,684

9,551

Other real estate owned

1,284

1,284

Other assets

25,932

26,291

26,636

25,978

24,261

Total assets

$

3,373,859

$

3,359,859

$

3,243,963

$

3,236,593

$

3,183,893

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities

Deposits

Noninterest bearing deposits

$

428,384

$

403,652

$

397,408

$

397,195

$

349,525

Interest bearing deposits

2,456,865

2,425,829

2,360,007

2,362,086

2,400,920

Total deposits

2,885,249

2,829,481

2,757,415

2,759,281

2,750,445

Advances from the Federal Home Loan Bank

60,000

110,000

75,000

75,000

40,000

Subordinated debentures

69,759

69,697

69,636

69,574

69,513

Accrued expenses and other liabilities

46,985

49,192

49,121

49,448

48,721

Total liabilities

3,061,993

3,058,370

2,951,172

2,953,303

2,908,679

Shareholders’ equity

Common stock, no par value

121,060

120,118

119,353

118,698

118,439

Retained earnings

191,281

181,587

174,008

165,495

157,971

Accumulated other comprehensive (loss)

(475

)

(216

)

(570

)

(903

)

(1,196

)

Total shareholders’ equity

311,866

301,489

292,791

283,290

275,214

Total liabilities and shareholders’ equity

$

3,373,859

$

3,359,859

$

3,243,963

$

3,236,593

$

3,183,893

BANKWELL FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

(Dollars in thousands, except share data)

For the Quarter Ended

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

Interest and dividend income

Interest and fees on loans

$

46,787

$

46,739

$

46,328

$

44,128

$

43,475

Interest and dividends on securities

1,784

1,834

1,410

1,478

1,445

Interest on cash and cash equivalents

1,965

2,037

2,853

3,043

3,557

Total interest and dividend income

50,536

50,610

50,591

48,649

48,477

Interest expense

Interest expense on deposits

21,930

22,388

22,585

23,083

24,772

Interest expense on borrowings

1,720

1,276

2,019

1,630

1,639

Total interest expense

23,650

23,664

24,604

24,713

26,411

Net interest income

26,886

26,946

25,987

23,936

22,066

(Credit) provision for credit losses

(1,029

)

616

372

(411

)

463

Net interest income after (credit) provision for credit losses

27,915

26,330

25,615

24,347

21,603

Noninterest income

Bank owned life insurance

358

361

359

352

344

Service charges and fees

780

771

779

674

602

Gains and fees from sales of loans

2,425

2,184

1,372

1,080

442

Other

(220

)

60

(15

)

(94

)

117

Total noninterest income

3,343

3,376

2,495

2,012

1,505

Noninterest expense

Salaries and employee benefits

9,830

7,717

7,995

7,521

7,052

Occupancy and equipment

2,705

2,575

2,469

2,505

2,575

Professional services

1,393

1,415

1,412

1,632

1,529

Data processing

716

877

633

712

885

Director fees

363

337

333

333

348

FDIC insurance

543

612

610

684

779

Marketing

126

108

140

218

142

Other

1,213

1,829

1,039

941

831

Total noninterest expense

16,889

15,470

14,631

14,546

14,141

Income before income tax expense

14,369

14,236

13,479

11,813

8,967

Income tax expense

3,094

5,092

3,401

2,725

2,079

Net income

$

11,275

$

9,144

$

10,078

$

9,088

$

6,888

Earnings Per Common Share:

Basic

$

1.42

$

1.16

$

1.28

$

1.16

$

0.88

Diluted

$

1.41

$

1.15

$

1.27

$

1.15

$

0.87

Weighted Average Common Shares Outstanding:

Basic

7,724,253

7,776,740

7,774,887

7,777,469

7,670,224

Diluted

7,800,935

7,858,047

7,844,785

7,819,829

7,740,521

Dividends per common share

$

0.20

$

0.20

$

0.20

$

0.20

$

0.20

BANKWELL FINANCIAL GROUP, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited)

(Dollars in thousands, except share data)

As of

Computation of Tangible Common Equity to Tangible Assets

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

Total Equity

$

311,866

$

301,489

$

292,791

$

283,290

$

275,214

Less:

Goodwill

2,589

2,589

2,589

2,589

2,589

Other intangibles

Tangible Common Equity

$

309,277

$

298,900

$

290,202

$

280,701

$

272,625

Total Assets

$

3,373,859

$

3,359,859

$

3,243,963

$

3,236,593

$

3,183,893

Less:

Goodwill

2,589

2,589

2,589

2,589

2,589

Other intangibles

Tangible Assets

$

3,371,270

$

3,357,270

$

3,241,374

$

3,234,004

$

3,181,304

Tangible Common Equity to Tangible Assets

9.17

%

8.90

%

8.95

%

8.68

%

8.57

%

As of

Computation of Fully Diluted Tangible Book Value per Common Share

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

Total shareholders' equity

$

311,866

$

301,489

$

292,791

$

283,290

$

275,214

Less:

Preferred stock

Common shareholders' equity

$

311,866

$

301,489

$

292,791

$

283,290

$

275,214

Less:

Goodwill

2,589

2,589

2,589

2,589

2,589

Other intangibles

Tangible common shareholders' equity

$

309,277

$

298,900

$

290,202

$

280,701

$

272,625

Common shares issued and outstanding

7,973,180

7,899,943

7,877,443

7,873,387

7,888,013

Fully Diluted Tangible Book Value per Common Share

$

38.79

$

37.84

$

36.84

$

35.65

$

34.56

BANKWELL FINANCIAL GROUP, INC.

EARNINGS PER SHARE ("EPS") (unaudited)

(Dollars in thousands, except share data)

For the Quarter Ended March 31,

2026

2025

(In thousands, except per share data)

Net income

$

11,275

$

6,888

Dividends to participating securities (1)

(26

)

(26

)

Undistributed earnings allocated to participating securities (1)

(248

)

(111

)

Net income for earnings per share calculation

11,001

6,751

Weighted average shares outstanding, basic

7,724,253

7,670,224

Effect of dilutive equity-based awards (2)

76,682

70,297

Weighted average shares outstanding, diluted

7,800,935

7,740,521

Net earnings per common share:

Basic earnings per common share

$

1.42

$

0.88

Diluted earnings per common share

$

1.41

$

0.87

(1)

Represents dividends paid and undistributed earnings allocated to unvested stock-based awards that contain non-forfeitable rights to dividends.

(2)

Represents the effect of the assumed exercise of stock options and the vesting of restricted shares, as applicable, utilizing the treasury stock method.

BANKWELL FINANCIAL GROUP, INC.

NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - QTD (unaudited)

(Dollars in thousands)

For the Quarter Ended

March 31, 2026

March 31, 2025

Average

Balance

Interest

Yield/

Rate (4)

Average

Balance

Interest

Yield/

Rate (4)

Assets:

Cash and Fed funds sold

$

244,216

$

1,965

3.26

%

$

349,235

$

3,557

4.13

%

Securities (1)

192,116

1,829

3.81

150,650

1,477

3.92

Loans:

Commercial real estate

1,900,235

29,511

6.21

1,848,208

28,285

6.12

Residential real estate

32,293

464

5.75

41,585

633

6.09

Construction

163,728

2,939

7.18

178,878

3,468

7.76

Commercial business

682,398

12,815

7.51

508,417

10,007

7.87

Consumer

74,237

1,058

5.78

81,483

1,082

5.38

Total loans

2,852,891

46,787

6.56

2,658,571

43,475

6.54

Federal Home Loan Bank stock

5,789

64

4.49

4,596

110

9.71

Total earning assets

3,295,012

$

50,645

6.15

%

3,163,052

$

48,619

6.15

%

Other assets

86,396

89,743

Total assets

$

3,381,408

$

3,252,795

Liabilities and shareholders' equity:

Interest bearing liabilities:

NOW

$

98,330

$

48

0.20

%

$

99,487

$

109

0.45

%

Money market

1,058,395

9,065

3.47

893,361

8,521

3.87

Savings

97,719

672

2.79

88,167

658

3.03

Time

1,218,184

12,145

4.04

1,378,468

15,484

4.56

Total interest bearing deposits

2,472,628

21,930

3.60

2,459,483

24,772

4.10

Borrowed Money

156,441

1,720

4.46

133,917

1,639

4.96

Total interest bearing liabilities

2,629,069

$

23,650

3.65

%

2,593,400

$

26,411

4.13

%

Noninterest bearing deposits

400,021

333,796

Other liabilities

44,967

50,555

Total liabilities

3,074,057

2,977,751

Shareholders' equity

307,351

275,044

Total liabilities and shareholders' equity

$

3,381,408

$

3,252,795

Net interest income (2)

$

26,995

$

22,208

Interest rate spread

2.50

%

2.02

%

Net Interest Margin (3)

3.28

%

2.81

%

(1)

Average balances and yields for securities are based on amortized cost.

(2)

The adjustment for securities and loans taxable equivalency amounted to $109 thousand and $142 thousand for the quarters ended March 31, 2026 and 2025, respectively.

(3)

Annualized net interest income as a percentage of earning assets.

(4)

Yields are calculated using the contractual day count convention for each respective product type.