Bankwell Financial Group Records Record Net Income in Q3 2026, Shows Strong Earnings Momentum
Bankwell Financial Group, a leading financial institution, has reported record net income for the third quarter of 2026. In its quarterly earnings call on October 29th, the company's executives provided an update on their performance and outlook.
The company's Chief Executive Officer, Chris Gruseke, stated that the third quarter was one of real progress for Bankwell. Margin expansion continued, with net interest margin increasing by 13 basis points to 3.71%. This marks the third consecutive quarter of expansion, reflecting higher earning asset yields and a more favorable funding mix.
Bankwell's SBA platform also had its best quarter yet, with $30 million of SBA originations in the quarter, resulting in net loan growth of $23 million. Year-to-date loans have grown by $143 million, or 5%, demonstrating the company's ability to remain selective and support both margin and credit quality.
The company's core deposits were down less than 1% from the second quarter but remained well above prior year levels. Compared with a year ago, core deposits have increased by $340 million, or 18%, and now represent 76% of total deposits, up from 69% a year ago.
Non-interest income increased by 21% this quarter to $4 million, primarily attributable to a record $2.8 million of SBA gain on sale income during the quarter. Year-to-date, SBA gains totaled $7.6 million compared to $2.9 million generated through the same period of 2025.
Bankwell's credit metrics improved meaningfully during the quarter, with non-performing loans declining to $7.1 million while non-performing assets fell 26 basis points to just 20 basis points of total assets. The company sold its largest non-performing asset, a COVID-era retail commercial real estate loan in Westchester County, New York, which had been charged off and contributed to net recoveries of $1.4 million for the quarter.
Tangible book value per share increased to $41.59, up $1.34 during the quarter and $3.75 since the beginning of the year. The company's President and Chief Banking Officer, Matt McNeill, emphasized that growing tangible book value on a consistent and safe manner is their primary responsibility to shareholders.
Looking ahead, Bankwell expects its core conversion project to expand capabilities, improve efficiency and scalability across the organization. The company anticipates completing the conversion in the second half of 2027 and will keep investors updated as the project progresses.
