Company: BWFG
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001505732-25-000089
Chunk: 158

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 2
Chunk 158
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214,745 Net interest income(2)$22,208 $21,198 Interest rate spread2.02 %1.83 %Net interest margin(3)2.81 %2.71 %

(1)Average balances and yields for securities are based on amortized cost.

(2)The adjustment for securities and loans taxable equivalency amounted to $142 thousand and $51 thousand for the three months ended March 31, 2025 and 2024, respectively.

(3)Annualized net interest income as a percentage of earning assets.

(4)Yields are calculated using the contractual day count convention for each respective product type.

49

Effect of changes in interest rates and volume of average earning assets and average interest bearing liabilities

The following table shows the extent to which changes in interest rates and changes in the volume of average earning assets and average interest bearing liabilities have affected net interest income. For each category of earning assets and interest bearing liabilities, information is provided relating to: changes in volume (changes in average balances multiplied by the prior year’s average interest rates); changes in rates (changes in average interest rates multiplied by the prior year’s average balances); and the total change. Changes attributable to both volume and rate have been allocated proportionately based on the relationship of the absolute dollar amount of change in each.

Three Months Ended March 31, 2025 vs 2024Increase (Decrease)(In thousands)VolumeRateTotalInterest and dividend income:Cash and Fed funds sold$667 $(936)$(269)Securities135 281 416 Loans:Commercial real estate(1,127)769 (358)Residential real estate(129)44 (85)Construction342 153 495 Commercial business(173)(104)(277)Consumer594 (219)375 Total loans(493)643 150 Federal Home Loan Bank stock(24)15 (9)Total change in interest and dividend income285 3 288 Interest expense:Deposits:NOW4 66 70 Money market98 (723)(625)Savings(37)(19)(56)Time709 (688)21 Total deposits774 (1,364)(590)Borrowed money(301)169 (132)Total change in interest expense473 (1,195)(722)Change in net interest income$(188)$1,198 $1,010 

Provision for