Company: BWFG
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001505732-25-000089
Chunk: 142

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 142
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, delinquency trends, current economic factors and the estimated impact of current economic conditions on certain historical loan loss rates.

Our general practice is to identify problem credits early and recognize full or partial charge-offs as promptly as practicable when it is determined that it is probable that the loan will not be repaid according to its original contractual terms, including principal and interest. Full or partial charge-offs on collateral dependent loans are recognized when the collateral is deemed to be insufficient to support the carrying value of the loan. We do not recognize a recovery when an updated appraisal indicates a subsequent increase in value of the collateral.

Our charge-off policies, which comply with standards established by our banking regulators, are consistently applied from period to period. Charge-offs are recorded on a monthly basis, as incurred. Partially charged-off loans continue to be evaluated on a monthly basis and additional charge-offs or provisions for credit losses may be recorded on the remaining loan balance based on the same criteria.

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The following table presents the activity in our ACL-Loans and related ratios for the dates indicated:

Three Months Ended March 31,(Dollars in thousands)20252024Balance at beginning of period$29,007 $27,946 Charge-offs:Residential real estate— (132)Commercial real estate(67)(3,306)Commercial business— (197)Consumer(33)(49)Total charge-offs(100)(3,684)Recoveries:Commercial real estate— — Commercial business4 27 Consumer36 4 Total recoveries40 31 Net (charge-offs) recoveries (60)(3,653)Provision for credit losses - loans538 3,698 Balance at end of period$29,485 $27,991 Net charge-offs to average loans0.00 %0.11 %ACL-Loans to total gross loans1.11 %1.04 %

At March 31, 2025, our ACL-Loans was $29.5 million and represented 1.11% of total gross loans, compared to $29.0 million or 1.07% of total gross loans, at December 31, 2024.

The following table presents the allocation of the ACL-Loans balance and the related allocation percentage of these loans across the total loan portfolio:

At March 31, 2025At December 31, 2024(Dollars in thousands)ACL-Loans AmountACL-Lo