Company: BWFG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001505732-25-000162
Chunk: 29

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 loss position at September 30, 2025 until the decline in value has recovered or the security has matured.

17

3. Loans Receivable and ACL-Loans

The following table sets forth a summary of the loan portfolio at September 30, 2025 and December 31, 2024:(In thousands)September 30, 2025December 31, 2024Real estate loans:Residential$33,625 $42,766 Commercial1,897,896 1,899,134 Construction170,888 173,555 2,102,409 2,115,455 Commercial business552,682 515,125 Consumer63,098 75,308 Total loans2,718,189 2,705,888 ACL-Loans(29,984)(29,007)Deferred loan origination fees, net(4,189)(3,922)Loans receivable, net$2,684,016 $2,672,959 Lending activities primarily consist of commercial real estate loans, commercial business loans and, to a lesser degree, consumer loans. Loans may also be granted for the construction of commercial properties. The majority of commercial mortgage loans are collateralized by first or second mortgages on real estate.Risk managementThe Company has established credit policies applicable to each type of lending activity in which it engages. The Company evaluates the creditworthiness of each client and extends credit of up to 80% of the market value of the collateral, (85% maximum for owner occupied commercial real estate),  depending on the client's creditworthiness and the type of collateral. The client’s ability to service the debt is monitored on an ongoing basis. Real estate is the primary form of collateral. Other important forms of collateral are business assets, deposits and marketable securities. While collateral provides assurance as a secondary source of repayment, the Company ordinarily requires the primary source of repayment for commercial loans to be based on the client’s ability to generate continuing cash flows. The Company does not provide first or second lien residential mortgage loans secured by residential properties but has a small legacy portfolio which continues to amortize, pay off due to the sale of the collateral, or refinance away from the Company. Credit quality of loans and the ACL-LoansManagement segregates the loan portfolio into defined segments, which are used to develop and document a systematic method for determining the Company's ACL-Loans. The portfolio segments are segregated based on loan types