Company: BWFG
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001505732-25-000052
Chunk: 114

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 7
Chunk 114
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 EndedDecember 31, 2024 vs 2023Increase (Decrease)VolumeRateTotal(In thousands)Interest and dividend income:Cash and fed funds sold$(306)$129 $(177)Securities415 776 1,191 Loans:Commercial real estate(1,521)5,214 3,693 Residential real estate(423)650 227 Construction(2,508)438 (2,070)Commercial business(1,499)2,098 599 Consumer560 (358)202 Total loans(5,391)8,042 2,651 Federal Home Loan Bank stock8 42 50 Total change in interest and dividend income$(5,274)$8,989 $3,715 Interest expense:Deposits:NOW$(2)$8 $6 Money market(2,081)3,946 1,865 Savings(676)298 (378)Time1,262 11,597 12,859 Total deposits(1,497)15,849 14,352 Borrowed money(60)433 373 Total change in interest expense(1,557)16,282 14,725 Change in net interest income$(3,717)$(7,293)$(11,010)

Provision for Credit Losses

The provision for credit losses is based on management’s periodic assessment of the adequacy of our ACL-Loans which, in turn, is based on such interrelated factors as the composition of our loan portfolio and its inherent risk characteristics, the level of nonperforming loans and net charge-offs, both current and historic, local economic and credit conditions, the direction of real estate values, and regulatory guidelines. The provision for credit losses is charged against earnings in order to maintain our ACL-Loans and reflects management’s best estimate of probable losses inherent in our loan portfolio at the balance sheet date.

The provision for credit losses for the year ended December 31, 2024 was $22.6 million compared to a $0.9 million provision for credit losses for the year ended December 31, 2023. The increase in the provision for credit losses during the year was primarily due to net charge offs. 

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Noninterest Income

Noninterest income is a component of our revenue and is comprised primarily of fees generated from loan and deposit relationships with our clients, fees generated from sales and referrals of