Company: BWFG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001505732-25-000162
Chunk: 89

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 89
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 one-year period should not decline by more than: 6% for a 100 basis point shift; 12% for a 200 basis point shift; and 18% for a 300 basis point shift. Per Company policy, the Bank should not be outside these limits for twelve consecutive months unless the Bank's forecasted capital ratios are considered to be "well capitalized". As of September 30, 2025, the Bank has met all minimum regulatory capital requirements to be considered "well capitalized".

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The following tables set forth the estimated percentage change in our net interest income at risk over one-year simulation periods beginning September 30, 2025 and December 31, 2024:

Parallel RampEstimated Percent Change in Net Interest IncomeRate Changes (basis points)September 30, 2025December 31, 2024Year 1 from Year 1 Base-100(0.70)%0.40 %+2001.40 %(1.00)%

Parallel ShockEstimated Percent Change in Net Interest IncomeRate Changes (basis points)September 30, 2025December 31, 2024Year 1 from Year 1 Base-100(3.20)%(1.00)%+1003.40 %0.60 %+2006.60 %0.80 %+30010.10 %1.40 %

The net interest income simulation model attempts to measure the change in net interest income over the next one-year period, and over the next two year period on a cumulative basis, assuming certain changes in the general level of interest rates. 

Based on our model, which was run as of September 30, 2025, we estimated that over the next one-year period a 200 basis-point parallel ramp increase of interest rates would increase our net interest income by 1.40%, while a 100 basis-point parallel ramp decrease of interest rates would decrease net interest income by 0.70%. As of December 31, 2024, we estimated that over the next one-year period a 200 basis-point parallel ramp increase of interest rates would decrease our net interest income by 1.00%, while a 100 basis-point parallel ramp decrease of interest rates would increase net interest income by 0.40%. Based on our model, which was run as of September 30, 2025, we estimated that over the next two years, on a cumulative basis, a 200 basis-point parallel ramp increase