Company: BWFG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001505732-25-000162
Chunk: 47

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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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, 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 in a requirement for the Bank to effectively maintain Common Equity Tier 1, Tier 1 and total capital ratios of 7.0%, 8.5% and 10.5%, respectively. The Bank must maintain the capital conservation buffer to avoid restrictions on the ability to pay dividends, pay discretionary bonuses, or to engage in share repurchases.As of June 30, 2023, the Company no longer met the definition of a Small Bank Holding Company as the Company's