Company: BWFG
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001505732-25-000089
Chunk: 54

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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875 $321,875 $— $321,875 $— NOW and money market1,004,503 1,004,503 — 1,004,503 — Savings90,220 90,220 — 90,220 — Time deposits1,370,972 1,374,309 — — 1,374,309 Accrued interest payable13,737 13,737 — 13,737 — Advances from the FHLB90,000 90,045 — — 90,045 Subordinated debentures69,451 66,167 — — 66,167 Servicing liability— — — — — Derivative liability4,472 4,472 — 4,472 — The following methods and assumptions were used by management in estimating the fair value of its financial instruments:Cash and due from banks, federal funds sold, accrued interest receivable and accrued interest payable: The carrying amount is a reasonable estimate of fair value.Marketable equity securities and available for sale securities: Fair values are based on quoted market prices or dealer quotes, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. The majority of the available for sale securities are considered to be Level 2 as other observable inputs are utilized, such as quoted prices for similar securities. Level 1 investment securities include investments in U.S. Treasury notes and in marketable equity securities for which a quoted price is readily available in the market. Level 3 held to maturity securities represent private placement municipal housing authority bonds for which no quoted market price is available. FHLB stock: The carrying value of FHLB stock approximates fair value based on the most recent redemption provisions of the FHLB.Loans receivable: For variable rate loans which reprice frequently and have no significant change in credit risk, fair values are based on carrying values. The fair value of fixed rate loans are estimated by discounting the future cash flows using the rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The fair value methodology includes prepayment, default and loss severity assumptions applied by type of loan. The fair value estimate of the loans includes an expected credit loss.

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Derivative asset (liability): The valuation of the Company’s interest rate swaps is