Company: BWFG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001505732-25-000162
Chunk: 113

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 113
---
 loan and which, in addition, make collection or liquidation in full highly questionable and improbable when considering existing facts, conditions, and values. Loans classified as “loss” (9) are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value; rather, it is not practical or desirable to defer charging off this asset even though partial recovery may be made in the future.Risk ratings are assigned as necessary to differentiate risk within the portfolio. They are reviewed on an ongoing basis through the annual loan review process performed by Company personnel, normal renewal activity, monthly delinquency monitoring, and the quarterly watchlist and watched asset report process. They are revised to reflect changes in the borrower's financial condition and outlook, debt service coverage capability, repayment performance, collateral value and coverage, as well as other considerations. In addition to internal review at multiple points, outsourced loan review opines on risk ratings with regard to the sample of loans their review covers.The following tables present credit risk ratings by loan segment as of September 30, 2025 and December 31, 2024:Commercial Credit Quality IndicatorsSeptember 30, 2025December 31, 2024Commercial Real EstateConstructionCommercial BusinessTotalCommercial Real EstateConstructionCommercial BusinessTotal(In thousands)Pass$1,816,881 $151,368 $547,294 $2,515,543 $1,767,482 $173,555 $501,432 $2,442,469 Special Mention66,348 19,520 3,478 89,346 86,838 — 6,020 92,858 Substandard14,667 — 1,910 16,577 43,413 — 7,619 51,032 Doubtful— — — — 1,401 — 54 1,455 Loss— — — — — — — — Total loans$1,897,896 $170,888 $552,682 $2,621,466 $1,899,134 $173,555 $515,125 $2,587,814 Residential and Consumer Credit Quality IndicatorsSeptember 30, 2025December 31, 2024Residential Real EstateConsumerTotalResidential Real Estate