Bankwell Posts $12.7 Million Profit, Lifts Full-Year Forecast

Bankwell Financial Group (NASDAQ: BWFG) said its third-quarter 2026 profit reached $12.7 million, or $1.58 a share, its highest on a GAAP basis, up from $12.4 million, or $1.52 a share, in the second quarter, according to a TradingKey account of the company's earnings call.

The result absorbed $3 million of pretax charges tied to a planned switch of the bank's core processing system, most of it from ending contracts with its existing provider. Stripping those charges out, the bank put operating profit at $15 million, or $1.86 a share. Chief executive Chris Gruseke said the quarter brought "real progress" for the lender.

Net interest margin widened 13 basis points to 3.71%, a third straight quarterly increase. Fee income rose 21% to $4 million, helped by $2.8 million of gains on sales of Small Business Administration loans, the most the platform has produced in a quarter. Loan originations totaled roughly $222 million, including $30 million of SBA credits.

Management raised its full-year net interest income range to $119 million to $121 million from $115 million to $117 million, and lifted its fee income outlook to $14 million to $15 million. The core conversion is slated for completion in the second half of 2027, with costs of about $400,000 to $500,000 a quarter over the following four quarters.

This story was first reported by TradingKey.