Company: BWFG
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001505732-25-000089
Chunk: 58

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 58
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 $— $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 March 31, 2025 and December 31, 2024:Fair ValueValuation MethodologyUnobservable InputRange(Dollars in thousands)March 31, 2025:Individually evaluated loans$18,393 AppraisalsDiscount to appraised value2.00 - 8.00%45,961 Appraisals, cash surrender value life insurance, securities, cash held as collateralDiscounts to appraised value and securities value0.00% - 8.00%10,234 Discounted cash flowsDiscount rate3.38 - 10.25%$74,588 Servicing asset, net$615 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 value0.00% - 8.00% 10,335 Discounted cash flowsDiscount rate3.38 - 10.25%$113,901 Servicing asset, net$558 Discounted cash flowsDiscount rate10.00%Prepayment rate3.00 - 18.00%Individually evaluated loans: Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments also include certain impairment amounts for collateral-dependent loans calculated in accordance with ASC 310-10 when establishing the ACL-Loans. Such amounts are generally based on the fair value of the underlying collateral supporting the loan. Collateral is typically valued using appraisals or other 

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indications of value based on recent comparable sales of similar properties or other assumptions. Estimates of fair value based on collateral are generally based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. For those loans where the primary source of repayment is cash flow from operations, adjustments include impairment amounts calculated