Company: BWFG
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001505732-25-000126
Chunk: 119

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 119
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 common shareholders and basic weighted average common shares outstanding to diluted weighted average common shares outstanding, reflecting the application of the two-class method:Three Months Ended June 30,Six Months Ended June 30,2025202420252024(In thousands, except per share data)Net income$9,088 $1,118 $15,976 $4,881 Dividends to participating securities(1)26 (40)53 (79)Undistributed earnings allocated to participating securities(1)(125)14 (241)(52)Net income for earnings per share calculation$8,989 $1,092 $15,788 $4,750 Weighted average shares outstanding, basic7,777,469 7,747,675 7,724,143 7,705,598 Effect of dilutive equity-based awards(2)42,359 (23,787)71,677 16,282 Weighted average shares outstanding, diluted7,819,828 7,723,888 7,795,820 7,721,880 Net earnings per common share:Basic earnings per common share$1.16 $0.14 $2.04 $0.62 Diluted earnings per common share$1.15 $0.14 $2.03 $0.62 (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.

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7. Regulatory Matters

The Federal Reserve, the FDIC and other federal and state bank regulatory agencies establish regulatory capital guidelines for U.S. banking organizations.Under the current guidelines, banking organizations must have a minimum total risk-based capital ratio of 8.0%, a minimum Tier 1 risk-based capital ratio of 6.0%, a minimum Common Equity Tier 1 risk-based capital ratio of 4.5%, and a minimum leverage ratio of 4.0% in order to be "adequately capitalized." In addition to these requirements, banking organizations must maintain a capital conservation buffer consisting of common equity in an amount above the minimum risk-based capital requirements for “adequately capitalized” institutions equal to 2.5% of total risk-weighted assets, resulting