Company: BWFG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001505732-25-000162
Chunk: 59

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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 valuation techniques utilized by the Company to determine the fair value:Fair Value(In thousands)Level 1Level 2Level 3September 30, 2025:Individually evaluated loans$— $— $48,147 Servicing asset, net— — 853 December 31, 2024:Individually evaluated loans$— $— $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 September 30, 2025 and December 31, 2024:Fair ValueValuation MethodologyUnobservable InputRange(Dollars in thousands)September 30, 2025:Individually evaluated loans$16,354 AppraisalsDiscount to appraised value5.00% - 8.00%28,788 Appraisals, cash surrender value life insurance, securities, cash held as collateralDiscounts to appraised value and securities value—% - 8.00%3,005 Discounted cash flowsDiscount rate3.38% - 7.91%$48,147 Other real estate owned$1,284 Purchase offerNot ApplicableServicing asset, net$853 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 value—% - 8.00% 10,335 Discounted cash flowsDiscount rate3.38% - 10.25%$113,901 Other real estate owned$8,299 Purchase offerNot applicableServicing asset, net$558 Discounted cash flowsDiscount rate10.00%Prepayment rate3.00% - 18.00%

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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-