Company: BWFG
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001505732-25-000052
Chunk: 11

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 1
Chunk 11
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2,705,888 $2,718,607 $2,675,448 $1,894,881 $1,625,627 

At December 31, Percent of Loan Portfolio20242023202220212020Real estate loans:Residential1.58 %1.87 %2.27 %4.22 %6.99 %Commercial70.19 71.64 71.81 71.60 70.64 Construction6.41 6.75 5.80 5.19 5.35 78.18 80.26 79.88 81.01 82.98 Commercial business19.04 18.41 19.45 18.52 17.02 Consumer2.78 1.33 0.67 0.47 — Total loans100.00 %100.00 %100.00 %100.00 %100.00 %

Residential real estate loans.   In the fourth quarter of 2017, management made the strategic decision to cease originating residential mortgage loans. In the third quarter of 2019, the Company stopped offering home equity loans or lines of credit. Prior to these decisions, we offered first lien one-to-four family mortgage loans, as well as home equity lines of credit, in each case primarily on owner-occupied primary residences. Although our residential real estate loan portfolio presents lower levels of risk than our commercial real estate and construction loan portfolios, we are exposed to risk based on fluctuations in the value of the real estate collateral securing the loan, as well as changes in the borrower’s financial condition, which could be affected by numerous factors, including divorce, job loss, illness or other personal hardship. The rising rate environment may also pose a risk in our residential adjustable rate mortgages and home equity lines of credit portfolios as borrowers' rates reset at increased levels.

Commercial real estate loans.   We offer real estate loans for owner-occupied commercial properties as well as commercial property owned by real estate investors. Loans that are secured by owner-occupied commercial real estate primarily collateralized by operating cash flows are also included in this loan category throughout this document. Commercial real estate loan terms generally are limited to ten years or less, although payments may be structured on a longer amortization basis of twenty to thirty years. The interest rates on our commercial real estate loans may be fixed or adjustable, although rates typically are not fixed