Eric J. Dale, a director at Bankwell Financial Group, Inc. (NASDAQ:BWFG), recently acquired 176 shares of the company's common stock. The shares were purchased at a price range of $34.47 to $34.51 per share, totaling approximately $6,073. Following this transaction, Dale's indirect ownership, held through a Deferred Compensation Plan, increased to 37,122 shares. This acquisition reflects Dale's continued investment in the financial institution, headquartered in New Canaan, Connecticut.
In other recent news, Bankwell Financial Group reported a rise in net income for the third quarter of 2024, reaching $1.9 million, or $0.24 per share, an increase from $1.1 million, or $0.14 per share, in the previous quarter. The firm's board declared a cash dividend of $0.20 per share, while also authorizing a new share repurchase plan, allowing the company to buy back up to 250,000 shares of its outstanding common stock. However, the third quarter's earnings were impacted by an $8.2 million charge-off against a $13.7 million office loan participation.
The company anticipates a reduction in funding costs and potential benefits to the net interest margin from maturing loans in the coming year. Bankwell has also made significant amendments to its bylaws, including altering the month for the annual shareholders' meeting and adjusting the requirement for the number of inspectors of elections at these meetings. The firm has also revised titles and membership requirements of various Board committees, modernizing the company's approach to share documentation.
In the realm of recent developments, the firm is set to record an $8.2 million charge off related to a non-performing commercial real estate loan, according to an SEC filing. This charge off is tied to a $13.7 million loan for a Class A office park in suburban New Jersey, where the borrower defaulted on payments. Post charge off, Bankwell's remaining exposure is projected at about $5.5 million. The company's future results are subject to various risks and uncertainties as stated in the SEC filing.
InvestingPro Insights
Eric J. Dale's recent purchase of Bankwell Financial Group (NASDAQ:BWFG) shares aligns with several positive trends highlighted by InvestingPro data. The stock has shown remarkable strength, with a significant 27.86% return over the last three months and an impressive 44.35% return over the past six months. This performance has brought BWFG's price to 97.27% of its 52-week high, indicating strong momentum.
InvestingPro Tips reveal that Bankwell Financial Group has maintained dividend payments for 10 consecutive years, which may be attractive to income-focused investors like Dale. The current dividend yield stands at 2.32%, offering a steady income stream. Additionally, analysts predict the company will remain profitable this year, despite expectations of a drop in net income.
It's worth noting that BWFG's P/E ratio of 17.48 and price-to-book ratio of 0.97 suggest the stock may be reasonably valued relative to its earnings and book value. However, investors should be aware that the company suffers from weak gross profit margins, which could impact future profitability.
For those interested in a deeper analysis, InvestingPro offers 10 additional tips for Bankwell Financial Group, providing a more comprehensive view of the company's financial health and market position.
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