Company: BWFG
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001505732-25-000089
Chunk: 141

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 141
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31, 2025At December 31, 2024Nonaccrual loans:Real estate loans:Residential$812 $791 Commercial17,945 44,814 Commercial business7,626 7,672 Construction— — Consumer— — Total nonaccrual loans26,383 53,277 Other real estate owned— 8,299 Total nonperforming assets$26,383 $61,576 Nonperforming assets to total assets0.83 %1.88 %Nonaccrual loans to total gross loans1.00 %1.97 %ACL-loans as a % of total loans1.11 %1.07 %ACL-loans as a % of nonperforming loans111.76 %54.45 %Total past due loans to total gross loans1.08 %1.63 %

Nonaccrual loans totaled $26.4 million at March 31, 2025 and $53.3 million at December 31, 2024. During the first quarter of 2025, the Company sold a $27.1 million multifamily commercial real estate loan on nonperforming status at par value. 

There was no Other Real Estate Owned ("OREO") at March 31, 2025 and $8.3 million of OREO at December 31, 2024. During the first quarter of 2025, the Company sold a property that it had acquired during the fourth quarter of 2024 and held as an OREO asset. The OREO asset had previously secured a non-performing construction loan. The Company received net proceeds from the sale of such OREO in the amount of $8.2 million.

Allowance for Credit Losses - Loans ("ACL-Loans")

Our Board of Directors has adopted an Allowance for Credit Losses policy designed to provide management with a methodology for determining and documenting the allowance for credit losses for each reporting period. We evaluate the adequacy of the ACL-Loans at least quarterly, and in determining our ACL-Loans, we estimate losses on specific loans, or groups of loans, where the probable loss can be identified and reasonably determined. The balance of our ACL-Loans is based on internally assigned risk classifications of loans, the Bank’s and peer banks’ historical loss experience, changes in the nature of the loan portfolio, overall portfolio quality, industry concentrations