Company: BWFG
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001505732-25-000126
Chunk: 136

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 136
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, cash surrender value life insurance, securities, cash held as collateralDiscounts to appraised value and securities value—% - 8.00%3,010 Discounted cash flowsDiscount rate3.38% - 7.91%$63,857 Servicing asset, net$671 Discounted cash flowsDiscount rate10.00%Prepayment rate3.00% - 18.00%December 31, 2024:Individually evaluated loans$45,203 AppraisalsDiscount to appraised value8.00%58,363 Appraisals, cash surrender value life insurance, securities, cash held as collateralDiscounts to appraised value and securities value—% - 8.00% 10,335 Discounted cash flowsDiscount rate3.38% - 10.25%$113,901 Servicing asset, net$558 Discounted cash flowsDiscount rate10.00%Prepayment rate3.00% - 18.00%Individually evaluated loans: Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments also include certain impairment amounts for collateral-dependent loans calculated in accordance with ASC 310-10 when establishing the ACL-Loans. Such amounts are generally based on the fair value of the underlying collateral supporting the loan. Collateral is typically valued using appraisals or other 

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indications of value based on recent comparable sales of similar properties or other assumptions. Estimates of fair value based on collateral are generally based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. For those loans where the primary source of repayment is cash flow from operations, adjustments include impairment amounts calculated based on the perceived collectability of interest payments on the basis of a discounted cash flow analysis utilizing a discount rate equivalent to the original note rate.Servicing assets and liabilities: When loans are sold, on a servicing retained basis, servicing rights are initially recorded at fair value. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized. The fair value of servicing assets and liabilities are not measured on an ongoing basis but are subject to fair value adjustments when and if the assets or liabilities are deemed to be impaired.

13. Subordinated debentures

On