The board of Bankwell Financial Group in New Canaan, Connecticut, has agreed to allow Director Larry Seidman to increase his ownership stake from 9.9% to 14.99%.
Seidman, a well-known community bank investor, joined the Bankwell board in 2020. He has been accumulating Bankwell shares in recent months. According to the Securities and Exchange Commission, Seidman has purchased more than 6,000 shares in nine transactions since September. Those transactions boosted his ownership stake to 746,046 shares, or 9.949% of the $3.2 billion-asset company. Seidman is Bankwell’s largest shareholder.
“My decision to increase my position in Bankwell aligns with my long-term investment strategy to purchase undervalued publicly traded community banks and reflects my strong support for the management team and the company’s promising outlook,” Seidman, the manager of Seidman and Associates in Parsippany, New Jersey, said Monday in a press release.
Though Bankwell reported a 4% increase in interest income through the first nine months of 2024, higher funding costs and expenses connected to problem loans have acted as a drag on profits. Net income through Sept. 30 totaled $6.8 million, down from $28.1 million for the same period in 2023.
In September, Bankwell moved to heighten its profile in Small Business Administration lending. It announced a
“Our average loan size over the last couple years is probably close to $2 million,” Ryan Hildebrand, Bankwell’s chief innovation officer, told American Banker at the time. “We’re really excited about the smaller balances, $150,000 or less. Obviously, it’s a space where there are a lot of underserved small businesses.”
Seidman, who was 76 when Bankwell filed its proxy statement in May, has earned a reputation as an activist investor and tough critic of bank management teams he deems underperforming. In August, he urged the $9.3 billion-asset Flushing Financial in Uniondale, New York, to
Seidman has also
Seidman, however, has also forged a number of strong, cooperative relationships with banks. Seidman has served as a director at five community banks in addition to Bankwell.
“Larry has been a steadfast supporter of the company’s strategic direction and growth initiatives,” Bankwell President and CEO Christopher Gruseske said in the press release. “We look forward to our continued relationship.”
Seidman isn’t the only Bankwell insider to buy shares in recent weeks. Director Darryl Demos purchased 2,290 shares on Dec. 13, while Chief Risk and Operations Officer Steven Brunner bought 1,330 shares on Dec. 16.
Bankwell’s share price was up 0.5% at $31.74 in recent trading on the Nasdaq exchange. After spending most of the year below $30, the stock rallied in November and is poised to end 2024 with a 5% gain.