Company: BWFG
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001505732-25-000126
Chunk: 61

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 61
---
 of the fair value hierarchy.Financial instruments measured at fair value on a nonrecurring basis Certain assets and liabilities are measured at fair value on a non-recurring basis in accordance with GAAP. These include assets that are measured at the lower-of-cost-or-market that were recognized at fair value below cost at the end of the period as well as assets that are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.

48

The following table details the financial instruments measured at fair value on a nonrecurring basis at June 30, 2025 and December 31, 2024, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value:Fair Value(In thousands)Level 1Level 2Level 3June 30, 2025:Individually evaluated loans$— $— $63,857 Servicing asset, net— — 671 December 31, 2024:Individually evaluated loans$— $— $113,901 Servicing asset, net— — 558 The following table presents information about quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on a nonrecurring basis at June 30, 2025 and December 31, 2024:Fair ValueValuation MethodologyUnobservable InputRange(Dollars in thousands)June 30, 2025:Individually evaluated loans$23,094 AppraisalsDiscount to appraised value—% - 8.00%37,753 Appraisals, cash surrender value life insurance, securities, cash held as collateralDiscounts to appraised value and securities value—% - 8.00%3,010 Discounted cash flowsDiscount rate3.38% - 7.91%$63,857 Servicing asset, net$671 Discounted cash flowsDiscount rate10.00%Prepayment rate3.00% - 18.00%December 31, 2024:Individually evaluated loans$45,203 AppraisalsDiscount to appraised value8.00%58,363 Appraisals, cash surrender value life insurance, securities, cash held as collateralDiscounts to appraised value and securities value—% - 8.00% 10,335 Discounted cash flowsDiscount rate3.38% -