Company: BWFG
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001505732-25-000052
Chunk: 43

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 8
Chunk 43
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 comparing information to source documents and external information sources.

–We tested management’s process and significant judgments in the selection of the peer bank determinations for scaling and forecasted economic scenarios of the allowance for credit losses, which included: 

•Evaluating management’s considerations and data utilized as a basis for the peer bank determinations for scaling used in the loss rate models and testing the completeness and accuracy of the underlying data by tracing the data to independent sources.  

•Evaluating management’s considerations and selection of forecasted economic scenarios and testing the reasonableness of the underlying data, which included Gross Domestic Product, interest rates, property price indices, and employment measures, among others, by comparing these forecasts to external and internal information sources that were available to management, which included the use of an internal economic specialist. 

•Evaluating the reasonableness of management’s weighting of selected forecasted economic scenarios by considering the consistency with available external market data.

/s/ RSM US LLP 

We have served as the Company’s auditor since 2017.

Hartford, Connecticut

March 5, 2025

65

Bankwell Financial Group, Inc.

Consolidated Balance Sheets

(In thousands, except share data)December 31,20242023ASSETSCash and due from banks$293,552 $267,521 Federal funds sold13,972 1,636 Cash and cash equivalents307,524 $269,157 Investment securitiesMarketable equity securities, at fair value2,118 2,070 Available for sale investment securities, at fair value107,428 109,736 Held to maturity investment securities, at amortized cost (fair values of $36,691 and $15,903 at December 31, 2024 and 2023, respectively)36,553 15,817 Total investment securities146,099 127,623 Loans receivable (net of ACL-Loans of $29,007 and $27,946 at December 31, 2024 and 2023, respectively)2,672,959 2,685,301 Other real estate owned8,299 — Accrued interest receivable14,535 14,863 Federal Home Loan Bank stock, at cost5,655 5,696 Premises and equipment, net23,856 27,018 Bank-owned life insurance52,791 51,435 Goodwill2,589 2