Company: BWFG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001505732-25-000162
Chunk: 79

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 79
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 presents an analysis of the commercial real estate portfolio's loan to value at origination and by property type as of September 30, 2025.

Commercial Real EstateTotal CRE Portfolio(1)Percentage of Total CRE PortfolioOriginal Loan to Value %(Dollars in thousands)Property TypeResidential care(2)$736,501 38.8 %63.0 %Retail325,358 13.9 62.9 Multifamily264,284 13.9 62.3 Office144,479 7.6 63.9 Industrial / warehouse132,328 7.0 64.1 Mixed use118,865 6.3 58.2 Medical office73,627 3.9 62.1 1-4 family investment33,511 1.8 61.1 All other68,723 3.6 53.4 Total$1,897,676 100.0 %62.3 %

(1) Excludes the positive fair value effect of the portfolio layer swap of $220 thousand for Commercial Real Estate at September 30, 2025.

(2) Primarily consists of skilled nursing and assisted living facilities. 

60

Asset Quality

We actively manage asset quality through our underwriting practices and collection operations. Our Board of Directors monitors credit risk management. The Directors Loan Committee ("DLC") has primary oversight responsibility for the credit-granting function including approval authority for credit-granting policies, review of management’s credit-granting activities and approval of large exposure credit requests, as well as loan review and problem loan management and resolution. The committee reports the results of its respective oversight functions to our Board of Directors. In addition, our Board of Directors receives information concerning asset quality measurements and trends on a monthly basis. While we continue to adhere to prudent underwriting standards, our loan portfolio is not immune to potential negative consequences as a result of general economic weakness, such as a prolonged downturn in the housing market or commercial real estate market on a national scale. Decreases in real estate values could adversely affect the value of property used as collateral for loans. In addition, adverse changes in the economy could have a negative effect on the ability of borrowers to make scheduled loan payments, which would likely have an adverse impact on earnings.

The Company has established credit policies applicable to each type of lending activity in which it engages. The Company evaluates the creditworthiness of each client and