Company: BWFG
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001505732-25-000126
Chunk: 173

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 173
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)(1,414)(1,629)498 (2,106)(1,608)Total deposits435 (2,030)(1,595)1,221 (3,406)(2,185)Borrowed money(242)89 (153)(545)259 (286)Total change in interest expense193 (1,941)(1,748)676 (3,147)(2,471)Change in net interest income$180 $2,613 $2,793 $(31)$3,833 $3,802 

(Credit) Provision for Credit Losses

The (credit) provision for credit losses is based on management’s periodic assessment of the adequacy of our ACL-Loans and ACL-Unfunded Commitments which, in turn, is based on interrelated factors such 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 ACL-Unfunded Commitments and reflects management’s best estimate of probable losses inherent in our loan portfolio as of the balance sheet date.

The credit for credit losses for the three months ended June 30, 2025 was $0.4 million compared to a provision for credit losses of $8.2 million for the three months ended June 30, 2024. The provision for credit losses for the six months ended June 30, 2025 was $0.1 million compared to a provision for credit losses of $11.9 million for the six months ended June 30, 2024.

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Noninterest Income

Noninterest income is a component of our revenue and is comprised primarily of fees generated from deposit relationships with our clients, fees generated from sales and referrals of loans, and income earned on bank-owned life insurance.

The following tables compare noninterest income for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30,Change(Dollars in thousands)20252024$%Gains and fees from sales of loans$1,080 $45 $1,035 FavorableBank-owned life insurance352 333 19 5.7 Service charges and fees674 495 179 36.2 Other