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

Bankwell Financial Group, Inc. (NASDAQ: BWFG) reported GAAP net income of $10.4 million, or $1.33 per share for the first quarter of 2023, versus $8.2 million, or $1.04 per share, for the same period in 2022.

The Company's Board of Directors declared a $0.20 per share cash dividend, payable May 23, 2023 to shareholders of record on May 12, 2023.

We recommend reading this earnings release in conjunction with the First Quarter 2023 Investor Presentation, located at http://investor.mybankwell.com/Presentations and included as an exhibit to our April 26, 2023 Current Report on Form 8-K.

Notes Bankwell Financial Group President and CEO, Christopher R. Gruseke:

"Bankwell delivered excellent results this quarter. Against the backdrop of a turbulent banking environment, we have maintained strong capital and liquidity levels. Our disciplined risk management practices have maintained outstanding credit quality and have protected the Bank's capital against rising interest rates. We have previously acknowledged and planned for the current environment of increased pressure on deposit costs, and can reiterate prior guidance for a year over year decline in Net Interest Income of approximately 10% for fiscal year 2023."

First Quarter 2023 Highlights:

• Total gross loans were $2.8 billion, growing $83.8 million, or 3.1%, compared to December 31, 2022.
• Deposits of $2.8 billion for the quarter ended March 31, 2023, unchanged from December 31, 2022.
• FDIC-insured deposits totaled $2.0 billion and represent 70.3% of total deposits as of March 31, 2023.
• As of March 31, 2023, the Bank has $1.5 billion immediately available liquidity, comprised of cash, AFS securities and borrowing capacity with the FHLB of Boston and FRB.
• Immediately available liquidity provides 200% coverage of uninsured deposits.
• Average yield on 2023 funded loans was 7.53% for the quarter ended March 31, 2023.
• Return on average assets was 1.30% for the quarter ended March 31, 2023.
• Return on average shareholders' equity was 17.48% for the quarter ended March 31, 2023.
• The net interest margin was 3.24% for the quarter ended March 31, 2023.
• The efficiency ratio was 46.9% for the quarter ended March 31, 2023.
• Investment securities totaled $121.1 million and represent 3.7% of total assets, with HTM securities totaling $15.9 million, or 0.5% of total assets.
• CECL adopted on January 1, 2023, resulting in a $5.1 million increase to the ACL-Loans and a $1.3 million adjustment to the ACL-Unfunded Commitments.

Earnings and Performance

Revenues (net interest income plus noninterest income) for the quarter ended March 31, 2023 were $27.1 million, versus $20.5 million for the quarter ended March 31, 2022. The increase in revenues was primarily attributable to an increase in interest and fees on loans due to loan growth and higher overall loan yields¹ for the quarter ended March 31, 2023 and an increase in noninterest income mainly driven by additional SBA loan sales. The increase in revenues was partially offset by an increase in interest expense.

1 - The increase in overall loan yields was 138 bps for the quarter ended March 31, 2023

Net income for the quarter ended March 31, 2023 was $10.4 million, versus $8.2 million for the quarter ended March 31, 2022. The increase in net income was a direct result of the aforementioned increases in revenues. In addition, the increase in net income was partially offset by an increase in the provision for credit losses and an increase in noninterest expense for the quarter ended March 31, 2023.

Basic and diluted earnings per share were $1.34 and $1.33, respectively, for the quarter ended March 31, 2023 compared to basic and diluted earnings per share of $1.05 and $1.04, respectively, for the quarter ended March 31, 2022.

The net interest margin (fully taxable equivalent basis) for the quarters ended March 31, 2023 and March 31, 2022 was 3.24% and 3.30%, respectively. The decrease in the net interest margin was due to an increase in funding costs partially offset by an increase in overall loan yields.

Allowance for Credit Losses

Provision for credit losses was $826 thousand for the quarter ended March 31, 2023, bringing the ACL-Loans as a percentage of total loans to 1.01%. Provision for credit losses was $4.3 million for the quarter ended December 31, 2022. The decrease in the provision for credit losses is attributable to lower loan growth.

On January 1, 2023, the Company adopted ASC 326 Financial Instruments - Credit Losses ("CECL"). Upon adoption of CECL, the Company recorded a one-time cumulative effect, pre-tax adjustment $5.1 million to the ACL-Loans and a corresponding net of tax adjustment to beginning retained earnings. The Company also recorded a one-time cumulative effect, pre-tax adjustment of $1.3 million to the ACL-Unfunded Commitments (which is reflected in Accrued expenses and other liabilities on the Consolidated Balance Sheets) and a corresponding net of tax adjustment to beginning retained earnings.

Financial Condition

Assets totaled $3.25 billion at March 31, 2023 and remained flat compared to December 31, 2022. Gross loans totaled $2.8 billion at March 31, 2023, an increase of $83.8 million or 3.1% compared to December 31, 2022. Deposits totaled $2.8 billion at March 31, 2023, and remained flat compared to December 31, 2022.

Capital

Shareholders’ equity totaled $242.3 million as of March 31, 2023, an increase of $3.8 million compared to December 31, 2022, primarily a result of net income of $10.4 million for the quarter ended March 31, 2023. The increase was partially offset by the Day 1 CECL adoption of $4.9 million, dividends paid of $1.6 million, and a $0.9 million unfavorable impact to accumulated other comprehensive income. The unfavorable impact to accumulated other comprehensive income was driven by fair value marks on the Company's Available for sale investment securities portfolio of $6.1 million partially offset by fair value marks related to hedge positions involving interest rate swaps of $5.0 million. The Company's interest rate swaps are used to hedge interest rate risk.

About Bankwell Financial Group

Bankwell is a commercial bank that serves the banking needs of residents and businesses throughout Fairfield and New Haven Counties, Connecticut. For more information about this press release, interested parties may contact Christopher R. Gruseke, President and Chief Executive Officer or Courtney E. Sacchetti, Executive Vice President and Chief Financial Officer of Bankwell Financial Group at (203) 652-0166.

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, adjusted noninterest expense, operating revenue, efficiency ratio, average tangible common equity, annualized return on average tangible common equity, return on average assets, return on average shareholders' equity, 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.

BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED BALANCE SHEETS (unaudited)
(Dollars in thousands)
		March 31, 2023				December 31, 2022				March 31, 2022
ASSETS
Cash and due from banks		$	249,812			$	344,925			$	280,471
Federal funds sold			27,370				10,754				19,022
Cash and cash equivalents			277,182				355,679				299,493
Investment securities
Marketable equity securities, at fair value			2,028				1,988				2,090
Available for sale investment securities, at fair value			103,171				103,663				98,733
Held to maturity investment securities, at amortized cost			15,931				15,983				15,979
Total investment securities			121,130				121,634				116,802
Loans receivable (net of ACL-Loans of $27,998, $22,431, and $17,141 at March 31, 2023, December 31, 2022, and March 31, 2022, respectively)			2,724,514				2,646,384				1,964,567
Accrued interest receivable			14,261				13,070				7,733
Federal Home Loan Bank stock, at cost			5,234				5,216				2,870
Premises and equipment, net			27,619				27,199				25,661
Bank-owned life insurance			50,524				50,243				49,434
Goodwill			2,589				2,589				2,589
Deferred income taxes, net			8,692				7,422				6,879
Other assets			20,573				23,013				20,849
Total assets		$	3,252,318			$	3,252,449			$	2,496,877
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits
Noninterest bearing deposits		$	377,667			$	404,559			$	412,985
Interest bearing deposits			2,420,641				2,396,259				1,753,219
Total deposits			2,798,308				2,800,818				2,166,204
Advances from the Federal Home Loan Bank			90,000				90,000				50,000
Subordinated debentures			69,020				68,959				34,471
Accrued expenses and other liabilities			52,683				54,203				35,982
Total liabilities			3,010,011				3,013,980				2,286,657
Shareholders’ equity
Common stock, no par value			115,875				115,018				114,882
Retained earnings			127,566				123,640				99,047
Accumulated other comprehensive (loss) income			(1,134	)			(189	)			(3,709	)
Total shareholders’ equity			242,307				238,469				210,220
Total liabilities and shareholders’ equity		$	3,252,318			$	3,252,449			$	2,496,877

BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(Dollars in thousands, except share data)
		For the Quarter Ended
		March 31, 2023			December 31, 2022				March 31, 2022
Interest and dividend income
Interest and fees on loans		$	39,723		$	36,545			$	21,428
Interest and dividends on securities			1,000			898				720
Interest on cash and cash equivalents			3,568			2,150				154
Total interest and dividend income			44,291			39,593				22,302
Interest expense
Interest expense on deposits			17,033			11,083				2,206
Interest expense on borrowings			1,717			1,701				586
Total interest expense			18,750			12,784				2,792
Net interest income			25,541			26,809				19,510
Provision for credit losses			826			4,272				229
Net interest income after provision for credit losses			24,715			22,537				19,281
Noninterest income
Bank owned life insurance			281			273				260
Service charges and fees			286			343				240
Gains and fees from sales of loans			931			12				631
Other			28			(100	)			(173	)
Total noninterest income			1,526			528				958
Noninterest expense
Salaries and employee benefits			6,081			5,988				4,940
Occupancy and equipment			2,084			1,919				2,150
Professional services			1,322			912				981
Data processing			671			663				654
Director fees			392			378				352
FDIC insurance			1,062			898				223
Marketing			151			112				45
Other			928			1,601				580
Total noninterest expense			12,691			12,471				9,925
Income before income tax expense			13,550			10,594				10,314
Income tax expense			3,171			2,573				2,102
Net income		$	10,379		$	8,021			$	8,212
Earnings Per Common Share:
Basic		$	1.34		$	1.04			$	1.05
Diluted		$	1.33		$	1.04			$	1.04
Weighted Average Common Shares Outstanding:
Basic			7,554,689			7,507,540				7,637,077
Diluted			7,616,671			7,563,116				7,719,405
Dividends per common share		$	0.20		$	0.20			$	0.20

BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)
		For the Quarter Ended
		March 31, 2023			December 31, 2022			March 31, 2022
Performance ratios:
Return on average assets		1.30	%		1.07	%		1.35	%
Return on average shareholders' equity		17.48	%		13.38	%		16.05	%
Return on average tangible common equity		17.67	%		13.52	%		16.25	%
Net interest margin		3.24	%		3.70	%		3.30	%
Efficiency ratio(1)		46.9	%		45.6	%		48.5	%
Net loan charge-offs as a % of average loans		0.02	%		—	%		—	%
Dividend payout ratio(2)		15.04	%		19.23	%		19.23	%

(1)		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.
(2)		The dividend payout ratio is calculated by dividing dividends per share by earnings per share.

						As of
		March 31, 2023				December 31, 2022				March 31, 2022
Capital ratios:
Total Common Equity Tier 1 Capital to Risk-Weighted Assets(1)			10.17	%			10.28	%			11.20	%
Total Capital to Risk-Weighted Assets(1)			11.16	%			11.07	%			12.00	%
Tier I Capital to Risk-Weighted Assets(1)			10.17	%			10.28	%			11.20	%
Tier I Capital to Average Assets(1)			9.22	%			9.88	%			9.80	%
Tangible common equity to tangible assets			7.38	%			7.26	%			8.32	%
Fully diluted tangible book value per common share		$	30.56			$	30.51			$	26.75

(1)

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

BANKWELL FINANCIAL GROUP, INC.
ASSET QUALITY (unaudited)
(Dollars in thousands)
		For the Quarter Ended
		March 31, 2023				December 31, 2022				March 31, 2022
ACL-Loans:
Balance at beginning of period		$	22,431			$	18,167			$	16,902
Day 1 CECL Adjustment on January 1, 2023			5,079				—				—
Beginning balance January 1, 2023			27,510				18,167				16,902
Charge-offs:
Commercial business			(440	)			—				—
Consumer			(12	)			(11	)			(4	)
Total charge-offs			(452	)			(11	)			(4	)
Recoveries:
Commercial real estate			—				—				—
Commercial business			—				—				13
Consumer			6				3				1
Total recoveries			6				3				14
Net loan (charge-offs) recoveries			(446	)			(8	)			10
Provision for credit losses - loans			934				4,272				229
Balance at end of period		$	27,998			$	22,431			$	17,141

		As of
		March 31, 2023				December 31, 2022				March 31, 2022
Asset quality:
Nonaccrual loans
Residential real estate		$	1,443			$	2,152			$	2,181
Commercial real estate			1,912				2,781				3,365
Commercial business			1,528				2,126				817
Construction			9,382				9,382				9,382
Total nonaccrual loans			14,265				16,441				15,745
Other real estate owned			—				—				—
Total nonperforming assets		$	14,265			$	16,441			$	15,745
Nonperforming loans as a % of total loans			0.52	%			0.61	%			0.79	%
Nonperforming assets as a % of total assets			0.44	%			0.51	%			0.63	%
ACL-loans as a % of total loans			1.01	%			0.84	%			0.86	%
ACL-loans as a % of nonperforming loans			196.27	%			136.43	%			108.87	%
Total past due loans to total loans			0.94	%			0.60	%			0.85	%

Total nonaccrual loans decreased $2.2 million to $14.3 million as of March 31, 2023 when compared to December 31, 2022. Nonperforming assets as a percentage of total assets decreased to 0.44% at March 31, 2023, down from 0.51% at December 31, 2022. The ACL-Loans at March 31, 2023 was $28.0 million, representing 1.01% of total loans.

Past due loans increased to $26.1 million, or 0.94% of total loans, as of March 31, 2023, compared to $16.1 million, or 0.60% of total loans, as of December 31, 2022. Of the March 31, 2023 past due loans, $10.0 million of loans were between 31 - 33 days past due and have subsequently become current. As of April 19, 2023, past due loans were $18.6 million or 0.67% of total loans.

BANKWELL FINANCIAL GROUP, INC.
LOAN & DEPOSIT PORTFOLIO (unaudited)
(Dollars in thousands)
Period End Loan Composition		March 31, 2023			December 31, 2022			% Change
Residential Real Estate		$	58,541		$	60,588		(3.4	) %
Commercial Real Estate(1)			1,960,712			1,921,252		2.1
Construction			177,115			155,198		14.1
Total Real Estate Loans			2,196,368			2,137,038		2.8
Commercial Business			543,457			520,447		4.4
Consumer			19,464			17,963		8.4
Total Loans		$	2,759,289		$	2,675,448		3.1	%

(1)		Includes owner occupied commercial real estate.

Gross loans totaled $2.8 billion at March 31, 2023, an increase of $83.8 million or 3.1% compared to December 31, 2022.

Period End Deposit Composition		March 31, 2023			December 31, 2022			% Change
Noninterest bearing demand		$	377,667		$	404,559		(6.6	) %
NOW			89,896			104,057		(13.6	)
Money Market			874,202			913,868		(4.3	)
Savings			117,986			151,944		(22.3	)
Time			1,338,557			1,226,390		9.1
Total Deposits		$	2,798,308		$	2,800,818		(0.1	)%

Total deposits were $2.8 billion at March 31, 2023, a decrease of $2.5 million, or 0.1%, when compared to December 31, 2022.

BANKWELL FINANCIAL GROUP, INC.
NONINTEREST INCOME (unaudited)
(Dollars in thousands)
		For the Quarter Ended
Noninterest income		March 31, 2023			December 31, 2022				March 31, 2022				Mar 23 vs. Dec 22 % Change			Mar 23 vs. Mar 22 % Change
Bank owned life insurance		$	281		$	273			$	260			2.9	%		8.1	%
Service charges and fees			286			343				240			(16.6	)		19.2
Gains and fees from sales of loans			931			12				631			(7,658.3	)		47.5
Other			28			(100	)			(173	)		(128.0	)		116.2
Total noninterest income		$	1,526		$	528			$	958			189.0	%		59.3	%

Noninterest income increased by $0.6 million to $1.5 million for the quarter ended March 31, 2023 compared to the quarter ended March 31, 2022. The increase in noninterest income was driven by an increase in SBA loan sales during the first quarter of 2023.

BANKWELL FINANCIAL GROUP, INC.
NONINTEREST EXPENSE (unaudited)
(Dollars in thousands)
		For the Quarter Ended
Noninterest expense		March 31, 2023			December 31, 2022			March 31, 2022			Mar 23 vs. Dec 22 % Change			Mar 23 vs. Mar 22 % Change
Salaries and employee benefits		$	6,081		$	5,988		$	4,940		1.6	%		23.1	%
Occupancy and equipment			2,084			1,919			2,150		8.6			(3.1	)
Professional services			1,322			912			981		45.0			34.8
Data processing			671			663			654		1.2			2.6
Director fees			392			378			352		3.7			11.4
FDIC insurance			1,062			898			223		18.3			376.2
Marketing			151			112			45		34.8			235.6
Other			928			1,601			580		(42.0	)		60.0
Total noninterest expense		$	12,691		$	12,471		$	9,925		1.8	%		27.9	%

Noninterest expense increased by $2.8 million to $12.7 million for the quarter ended March 31, 2023 compared to the quarter ended March 31, 2022. The increase in noninterest expense was primarily driven by an increase in salaries and employee benefits expense, professional services expense, and FDIC insurance.

Salaries and employee benefits expense totaled $6.1 million for the quarter ended March 31, 2023, an increase of $1.1 million when compared to the same period in 2022. The increase in salaries and employee benefits expense was driven by an increase in full time equivalent employees, with full time equivalent employees totaling 135 at March 31, 2023 compared to 126 for the same period in 2022. The increase in salaries and employee benefits expense was also due to lower loan originations, which reduced the amount of the Bank's ability to defer expenses.

Professional services expense totaled $1.3 million for the quarter ended March 31, 2023, an increase of $0.3 million when compared to the same period in 2022. The increase in professional services expense was primarily driven by consulting fees.

FDIC insurance expense totaled $1.1 million for the quarter ended March 31, 2023, an increase of $0.8 million when compared to the same period in 2022. The increase in FDIC insurance expense is attributed to the overall balance sheet growth, increased use of brokered deposits, and an increase in FDIC insurance rates.

BANKWELL FINANCIAL GROUP, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited)
(Dollars in thousands, except share data)
		As of
		March 31,				December 31,				March 31,
Computation of Tangible Common Equity to Tangible Assets			2023				2022				2022
Total Equity		$	242,307			$	238,469			$	210,220
Less:
Goodwill			2,589				2,589				2,589
Other intangibles			—				—				—
Tangible Common Equity		$	239,718			$	235,880			$	207,631
Total Assets		$	3,252,318			$	3,252,449			$	2,496,877
Less:
Goodwill			2,589				2,589				2,589
Other intangibles			—				—				—
Tangible Assets		$	3,249,729			$	3,249,860			$	2,494,288
Tangible Common Equity to Tangible Assets			7.38	%			7.26	%			8.32	%

		As of
		March 31,			December 31,			March 31,
Computation of Fully Diluted Tangible Book Value per Common Share		2023			2022			2022
Total shareholders' equity		$	242,307		$	238,469		$	210,220
Less:
Preferred stock			—			—			—
Common shareholders' equity		$	242,307		$	238,469		$	210,220
Less:
Goodwill			2,589			2,589			2,589
Other intangibles			—			—			—
Tangible common shareholders' equity		$	239,718		$	235,880		$	207,631
Common shares issued and outstanding			7,843,438			7,730,699			7,761,338
Fully Diluted Tangible Book Value per Common Share		$	30.56		$	30.51		$	26.75

BANKWELL FINANCIAL GROUP, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited) - Continued
(Dollars in thousands)
		For the Quarter Ended
Computation of Efficiency Ratio		March 31, 2023				December 31, 2022				March 31, 2022
Noninterest expense		$	12,691			$	12,471			$	9,925
Less:
Amortization of intangible assets			—				—				—
Other real estate owned expenses			—				—				—
Adjusted noninterest expense		$	12,691			$	12,471			$	9,925
Net interest income		$	25,541			$	26,809			$	19,510
Noninterest income			1,526				528				958
Less:
Net gain on sale of available for sale securities			—				—				—
Gain on sale of other real estate owned, net			—				—				—
Operating revenue		$	27,067			$	27,337			$	20,468
Efficiency ratio			46.9	%			45.6	%			48.5	%

		For the Quarter Ended
Computation of Return on Average Tangible Common Equity		March 31, 2023				December 31, 2022				March 31, 2022
Net Income Attributable to Common Shareholders		$	10,379			$	8,021			$	8,212
Total average shareholders' equity		$	240,833			$	237,922			$	207,541
Less:
Average Goodwill			2,589				2,589				2,589
Average Other intangibles			—				—				—
Average tangible common equity		$	238,244			$	235,333			$	204,952
Annualized Return on Average Tangible Common Equity			17.67	%			13.52	%			16.25	%

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, 2023									March 31, 2022
		Average Balance			Interest			Yield/ Rate (4)			Average Balance			Interest			Yield/ Rate (4)
Assets:
Cash and Fed funds sold		$	315,566		$	3,568		4.59	%		$	346,183		$	154		0.18	%
Securities(1)			129,881			956		2.49				112,337			754		2.69
Loans:
Commercial real estate			1,918,551			25,585		5.33				1,343,565			14,997		4.46
Residential real estate			59,444			643		4.33				73,835			671		3.64
Construction			166,254			2,825		6.80				102,179			1,033		4.04
Commercial business			542,399			10,421		7.68				383,115			4,625		4.83
Consumer			18,536			249		5.45				6,054			102		6.85
Total loans			2,705,184			39,723		5.87				1,908,748			21,428		4.49
Federal Home Loan Bank stock			5,271			94		7.27				2,835			15		2.10
Total earning assets			3,155,902		$	44,341		5.62	%			2,370,103		$	22,351		3.77	%
Other assets			84,063									100,469
Total assets		$	3,239,965								$	2,470,572
Liabilities and shareholders' equity:
Interest bearing liabilities:
NOW		$	92,918		$	37		0.16	%		$	112,199		$	47		0.17	%
Money market			907,739			6,385		2.85				969,527			1,180		0.49
Savings			136,333			727		2.16				194,463			101		0.21
Time			1,252,564			9,883		3.20				453,805			878		0.78
Total interest bearing deposits			2,389,554			17,032		2.89				1,729,994			2,206		0.52
Borrowed Money			161,202			1,717		4.26				84,452			586		2.77
Total interest bearing liabilities			2,550,756		$	18,749		2.98	%			1,814,446		$	2,792		0.62	%
Noninterest bearing deposits			403,920									405,400
Other liabilities			44,406									43,185
Total liabilities			2,999,082									2,263,031
Shareholders' equity			240,883									207,541
Total liabilities and shareholders' equity		$	3,239,965								$	2,470,572
Net interest income(2)					$	25,592								$	19,559
Interest rate spread								2.64	%								3.15	%
Net interest margin(3)								3.24	%								3.30	%

(1)		Average balances and yields for securities are based on amortized cost.
(2)		The adjustment for securities and loans taxable equivalency amounted to $51 thousand and $49 thousand for the quarters ended March 31, 2023 and 2022, 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.

 

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