Company: BWFG
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001505732-25-000089
Chunk: 134

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 134
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 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 Credit Losses

The provision for credit losses is based on management’s periodic assessment of the adequacy of our ACL-Loans and ACL-Unfunded Commitments which, in turn, is based on interrelated factors such as the composition of our loan portfolio and its inherent risk characteristics, the level of nonperforming loans and net charge-offs, both current and historic, economic and credit conditions, the direction of real estate values, and regulatory guidelines. The provision for credit losses is charged against earnings in order to maintain our ACL-Loans and ACL-Un