Company: BWFG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001505732-25-000162
Chunk: 130

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 130
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000 Other assets$3,259 $— Accrued expenses and other liabilities$— Fair value swap$— Other assets$— $150,000 Accrued expenses and other liabilities$259 Derivatives not designated as hedging instruments:Interest rate swaps(1)$38,500 Other assets$4,213 $38,500 Accrued expenses and other liabilities$4,213 (1) Represents interest rate swaps with commercial banking clients, which are offset by derivatives with a third party.Accrued interest receivables related to interest rate swaps as of December 31, 2024 totaled $0.6 million and is excluded from the fair value presented in the table above. The fair value of interest rate swaps in a net asset position, including accrued interest, totaled $3.7 million as of December 31, 2024.The effective portion of changes in the fair value of derivatives designated as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. The Company expects to reclassify $0.2 million to reduce interest expense during the next 12 months.The Company assesses the cash flow swaps hedge effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged item or transaction. The Company does not offset derivative assets and derivative liabilities for financial statement presentation purposes.The Company assesses the effectiveness of the fair value swap hedge with a regression analysis that compares the changes in forward curves to determine the value. The effective portion of changes in the fair value of derivatives designated as fair value hedges is recorded through interest income. The Company does not offset derivative assets and derivative liabilities for financial statement presentation purposes.

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Changes in the consolidated statements of comprehensive income (loss) related to interest rate derivatives designated as hedges of cash flows were as follows for the three and nine months ended September 30, 2025 and September 30, 2024:Three Months Ended September 30,Three Months Ended September 30,(In thousands)2025202420252024Interest rate swaps designated as cash flow hedges:Unrealized gain (loss) recognized in accumulated other comprehensive income before reclassifications$(45)$(1