Company: BWFG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001505732-25-000162
Chunk: 122

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 122
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uted EPS is computed in a similar manner, except that the denominator includes the number of additional common shares that would have been outstanding if potentially dilutive common shares were issued using the treasury stock method.The following table is a reconciliation of earnings available to 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 September 30,Nine Months Ended September 30,2025202420252024(In thousands, except per share data)Net income$10,078 $1,926 $26,054 $6,807 Dividends to participating securities(1)26 (38)79 (117)Undistributed earnings allocated to participating securities(1)(142)(9)(386)(53)Net income for earnings per share calculation$9,962 $1,879 $25,747 $6,637 Weighted average shares outstanding, basic7,774,887 7,715,040 7,741,244 7,708,768 Effect of dilutive equity-based awards(2)69,898 5,855 78,365 22,686 Weighted average shares outstanding, diluted7,844,785 7,720,895 7,819,609 7,731,454 Net earnings per common share:Basic earnings per common share$1.28 $0.24 $3.33 $0.86 Diluted earnings per common share$1.27 $0.24 $3.29 $0.86 (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