Company: BWFG
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001505732-25-000126
Chunk: 153

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 153
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4, respectively.

Credit risk management involves a partnership between our relationship managers and our credit approval, portfolio management, credit administration and collections teams. Disciplined underwriting, portfolio monitoring and early problem recognition are important aspects of maintaining our high credit quality standards.

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Nonperforming assets. Nonperforming assets include nonaccrual loans and property acquired through foreclosures or repossession. The following table presents nonperforming assets and additional asset quality data for the dates indicated:

(In thousands)At June 30, 2025At December 31, 2024Nonaccrual loans:Real estate loans:Residential$617 $791 Commercial16,387 44,814 Commercial business6,871 7,672 Construction— — Consumer— — Total nonaccrual loans23,875 53,277 Other real estate owned1,284 8,299 Total nonperforming assets$25,159 $61,576 Nonperforming assets to total assets0.78 %1.88 %Nonaccrual loans to total loans0.89 %1.97 %ACL-loans as a % of total loans1.10 %1.07 %ACL-loans as a % of nonperforming loans122.54 %54.45 %Total past due loans to total loans0.91 %1.63 %

Nonaccrual loans totaled $23.9 million at June 30, 2025 and $53.3 million at December 31, 2024. In the first quarter of 2025, the Company sold a $27.1 million multifamily commercial real estate loan on nonperforming status at par value. 

There was $1.3 million Other Real Estate Owned ("OREO") at June 30, 2025 and $8.3 million of OREO at December 31, 2024. During the first quarter of 2025, the Company sold a property that it had acquired during the fourth quarter of 2024 and held as an OREO asset. The OREO asset had previously secured a non-performing construction loan. The Company received net proceeds from the sale of such OREO in the amount of $8.3 million. In the second quarter of 2025, the Company took title to an industrial property, resulting in an OREO asset of $1.3 million. Eff