Company: BWFG
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001505732-25-000089
Chunk: 52

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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 substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction. The estimated fair value amounts have been measured as of the respective period-ends, and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period-end.The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk.

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The carrying values, fair values and placement in the fair value hierarchy of the Company's financial instruments at March 31, 2025 and December 31, 2024 were as follows:March 31, 2025Carrying ValueFair ValueLevel 1Level 2Level 3(In thousands)Financial Assets:Cash and due from banks$292,006 $292,006 $292,006 $— $— Federal funds sold12,922 12,922 12,922 — — Marketable equity securities2,164 2,164 2,164 — — Available for sale securities97,321 97,321 53,967 43,354 — Held to maturity securities36,478 36,763 — — 36,763 Loans receivable, net2,611,495 2,602,340 — — 2,602,340 Accrued interest receivable15,409 15,409 — 15,409 — FHLB stock3,583 3,583 — 3,583 — Servicing asset, net of valuation allowance615