Company: BWFG
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001505732-25-000089
Chunk: 41

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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 provides information for the items reclassified from accumulated other comprehensive income or loss:Accumulated Other Comprehensive Income ComponentsThree Months Ended March 31,Associated Line Item in the Consolidated Statements of Income20252024(In thousands)Derivatives:Unrealized gains (losses) on derivatives$612 $1,257 Interest expense on borrowingsTax (expense) benefit(145)(654)Income tax expenseNet of tax$467 $603 

6. Earnings per share ("EPS")

Unvested restricted stock awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of EPS pursuant to the two-class method. The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. The Company’s unvested restricted stock awards qualify as participating securities.Net income is allocated between the common stock and participating securities pursuant to the two-class method. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period, excluding participating unvested restricted stock awards.Diluted 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.

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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 March 31,20252024(In thousands, except per share data)Net income$6,888 $3,763 Dividends to participating securities(1)(26)(40)Undistributed earnings allocated to participating securities(1)(111)(66)Net income for earnings per share calculation$6,751 $3,657 Weighted average shares outstanding, basic7,670,224 7,663,521 Effect of dilutive equity-based awards(2)70,297 24,158 Weighted average shares outstanding, diluted7,740,521 7,687,679 Net earnings per common share:Basic earnings per common share$0.88 $0.48 Diluted earnings per common share$0.87 $0.48 (1)    Represents dividends paid and undistributed earnings allocated to unvested stock-based awards that contain non-forfeitable