What changed in this filing

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Item 1. Financial Statements

2024-08-07 compared with 2024-05-08 · 252 added, 159 removed, 1110 unchanged (27% of the section changed)

3 unchanged sentences

(In thousands, except share data)

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Cash and due from banks $ 234,277 $ 267,521

4 unchanged sentences

Available for sale investment securities, at fair value 107,635 109,736

Held to maturity investment securities, at amortized cost (fair values of $ 15,488 and $ 15,903 at March 31, 2024 and December 31, 2023, respectively)

Held to maturity investment securities, at amortized cost (fair values of $ 28,966 and $ 15,903 at June 30, 2024 and December 31, 2023, respectively)

28,286 15,817

Total investment securities 138,000 127,623

Loans receivable (net of ACL-Loans of $ 27,991 at March 31, 2024 and $ 27,946 at December 31, 2023, respectively)

Loans receivable (net of ACL-Loans of $ 36,083 at June 30, 2024 and $ 27,946 at December 31, 2023)

2,616,691 2,685,301

12 unchanged sentences

Advances from the Federal Home Loan Bank 90,000 90,000

Subordinated debentures (face value of $ 70,000 and $ 70,000 at March 31, 2024 and December 31, 2023, respectively, less unamortized debt issuance costs of $ 734 and $ 795 at March 31, 2024 and December 31, 2023, respectively)

Subordinated debentures (face value of $ 70,000 and $ 70,000 at June 30, 2024 and December 31, 2023, respectively, less unamortized debt issuance costs of $ 672 and $ 795 at June 30, 2024 and December 31, 2023, respectively)

69,328 69,205

4 unchanged sentences

Common stock, no par value;

10,000,000 shares authorized, 7,908,180 and 7,882,616 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively

10,000,000 shares authorized, 7,866,499 and 7,882,616 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

118,037 118,247

7 unchanged sentences

(In thousands, except share data)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2024 2023 2024 2023

Interest and dividend income

40 unchanged sentences

(In thousands)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2024 2023 2024 2023

Net income $ 1,118 $ 7,983 $ 4,881 $ 18,362

Other comprehensive income:

Unrealized (losses) gains on securities:

Unrealized holding (losses) gains on available for sale securities ( 218 ) 752

Unrealized gains (losses) on securities:

Unrealized holding gains (losses) on available for sale securities 398 ( 1,941 ) 182 ( 1,189 )

Reclassification adjustment for gains realized in net income — — — —

Net change in unrealized (losses) gains ( 218 ) 752

Income tax benefit (expense) 102 ( 118 )

Unrealized (losses) gains on securities, net of tax ( 116 ) 634

Unrealized gains (losses) on interest rate swaps:

Unrealized gains (losses) on interest rate swaps 125 ( 1,981 )

Net change in unrealized gains (losses) 398 ( 1,941 ) 182 ( 1,189 )

Income tax (expense) benefit ( 94 ) 446 7 328

Unrealized gains (losses) on interest rate swaps, net of tax 61 ( 1,579 )

Unrealized gains (losses) on securities, net of tax 304 ( 1,495 ) 189 ( 861 )

Unrealized (losses) gains on interest rate swaps:

Unrealized (losses) gains on interest rate swaps ( 709 ) 1,185 ( 583 ) ( 796 )

Income tax benefit (expense) 168 ( 272 ) 102 130

Unrealized (losses) gains on interest rate swaps, net of tax ( 541 ) 913 ( 481 ) ( 666 )

Total other comprehensive (loss) income, net of tax ( 237 ) ( 582 ) ( 292 ) ( 1,527 )

5 unchanged sentences

Number of Outstanding Shares Common Stock Retained Earnings Accumulated Other Comprehensive (Loss) Income Total

Balance at December 31, 2023 7,882,616 $ 118,247 $ 149,169 $ ( 1,664 ) $ 265,752

Balance at March 31, 2024 7,908,180 $ 118,401 $ 151,350 $ ( 1,719 ) $ 268,032

Net income — — 1,118 — 1,118

7 unchanged sentences

Repurchase of common stock ( 40,140 ) ( 986 ) — — ( 986 )

Balance at June 30, 2024 7,866,499 $ 118,037 $ 150,895 $ ( 1,956 ) $ 266,976

Number of Outstanding Shares Common Stock Retained Earnings Accumulated Other Comprehensive (Loss) Income Total

Balance at March 31, 2023 7,843,438 $ 115,875 $ 127,566 $ ( 1,134 ) $ 242,307

Net income — — 7,983 — 7,983

Other comprehensive income, net of tax — — — ( 582 ) ( 582 )

Cash dividends declared ($ 0.20 per share)

— — ( 1,561 ) — ( 1,561 )

Stock-based compensation expense — 666 — — 666

Forfeitures of restricted stock ( 13,488 ) — — — —

Issuance of restricted stock — — — — —

Stock options exercised — — — — —

Repurchase of common stock — — — — —

Balance at June 30, 2023 7,829,950 $ 116,541 $ 133,988 $ ( 1,716 ) $ 248,813

See accompanying notes to consolidated financial statements (unaudited)

Bankwell Financial Group, Inc.

Consolidated Statements of Shareholders' Equity - (unaudited)

(In thousands, except share data)

Number of Outstanding Shares Common Stock Retained Earnings Accumulated Other Comprehensive (Loss) Income Total

Balance at December 31, 2023 7,882,616 $ 118,247 $ 149,169 $ ( 1,664 ) $ 265,752

Net income — — 4,881 — 4,881

Other comprehensive (loss), net of tax — — — ( 292 ) ( 292 )

Cash dividends declared ($ 0.40 per share)

— — ( 3,155 ) — ( 3,155 )

Stock-based compensation expense — 1,696 — — 1,696

Forfeitures of restricted stock ( 2,700 ) — — — —

Issuance of restricted stock 62,903 — — — —

Stock options exercised — — — — —

Repurchase of common stock ( 76,320 ) ( 1,906 ) — — ( 1,906 )

Balance at June 30, 2024 7,866,499 $ 118,037 $ 150,895 $ ( 1,956 ) $ 266,976

Number of Outstanding Shares Common Stock Retained Earnings Accumulated Other Comprehensive (Loss) Income Total

Balance at December 31, 2022 7,730,699 $ 115,018 $ 123,640 $ ( 189 ) $ 238,469

Cumulative effect of change in accounting principle (ASU No.

10 unchanged sentences

Repurchase of common stock — — — — —

Balance at March 31, 2023 7,843,438 $ 115,875 $ 127,566 $ ( 1,134 ) $ 242,307

Balance at June 30, 2023 7,829,950 $ 116,541 $ 133,988 $ ( 1,716 ) $ 248,813

See accompanying notes to consolidated financial statements (unaudited)

2 unchanged sentences

(In thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from operating activities

2 unchanged sentences

Net amortization of premiums and discounts on investment securities 87 35

Provision for credit losses 3,683 826

(Provision) credit for credit losses 11,866 3,405

Credit for deferred income taxes ( 1,853 ) ( 676 )

5 unchanged sentences

Stock-based compensation 1,696 1,368

Loss (gain) on sale of premises and equipment — 13

Net change in:

3 unchanged sentences

Accrued expenses and other liabilities ( 660 ) 1,521

Net cash provided by operating activities 9,029 7,113

Net cash (used in) provided by operating activities 16,178 19,741

Cash flows from investing activities

6 unchanged sentences

Purchases of premises and equipment, net ( 452 ) ( 1,655 )

Purchases of Federal Home Loan Bank stock 41 ( 18 )

Net cash used in investing activities 35,178 ( 81,694 )

Reduction (purchases) of Federal Home Loan Bank stock 41 ( 480 )

Net cash provided by (used in) investing activities 45,488 ( 98,448 )

See accompanying notes to consolidated financial statements (unaudited)

2 unchanged sentences

(In thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from financing activities

92 unchanged sentences

Government and as a result, management has a zero loss expectation.

No ACL-Securities was recorded for these securities as of March 31, 2024.

No ACL-Securities was recorded for these securities as of June 30, 2024.

For the corporate bond portfolio, the Company developed a metric that includes each issuer’s current credit ratings and key financial performance metrics to assess the underlying performance of each issuer.

The analysis of the issuers’ performance and the intent of the Company to retain these securities support the determination that there is no expected credit loss, and therefore, no ACL-Securities were recognized on the corporate bond portfolio as of March 31, 2024.

Of our held to maturity securities portfolio, one security’s fair value was less than its amortized cost as of March 31, 2024.

Of our held to maturity securities portfolio, one security’s fair value was less than its amortized cost as of June 30, 2024.

Since this is a highly rated state agency and municipal obligation, the Company's expectation of nonpayment of the amortized cost basis is zero.

No allowance for ALC-Securities was recorded for this security as of March 31, 2024.

No allowance for ALC-Securities was recorded for this security as of June 30, 2024.

Common Share Repurchases

45 unchanged sentences

Investment Securities

The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at March 31, 2024 were as follows:

March 31, 2024

The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at June 30, 2024 were as follows:

June 30, 2024

Amortized Cost Gross Unrealized Fair Value

14 unchanged sentences

State agency and municipal obligations

Due from five through ten years $ 2,830 $ — $ ( 75 ) $ 2,755

Due after ten years 25,426 1,664 ( 910 ) 26,180

24 unchanged sentences

Total held to maturity securities $ 15,817 $ 717 $ ( 631 ) $ 15,903

There were no sales of investment securities during the three months ended March 31, 2024 or 2023.

At March 31, 2024 and December 31, 2023, none of the Company's securities were pledged as collateral with the Federal Home Loan Bank ("FHLB") or any other institution.

As of March 31, 2024 and December 31, 2023, the actual durations of the Company's available for sale securities were significantly shorter than the stated maturities.

As of March 31, 2024, the Company held marketable equity securities with a fair value of $ 2.1 million an d an amortized cost of $ 2.2 million.

There were no sales of investment securities during the six months ended June 30, 2024 or 2023.

At June 30, 2024 and December 31, 2023, none of the Company's securities were pledged as collateral with the Federal Home Loan Bank ("FHLB") or any other institution.

As of June 30, 2024 and December 31, 2023, the actual durations of the Company's available for sale securities were significantly shorter than the stated maturities.

As of June 30, 2024, the Company held marketable equity securities with a fair value of $ 2.1 million an d an amortized cost of $ 2.2 million .

At December 31, 2023, the Company held marketable equity securities with a fair value of $ 2.1 million and an amortized cost of $ 2.2 million.

These securities represent an investment in mutual funds that have an objective to make investments for Community Reinvestment Act ("CRA") purposes.

The following tables provide information regarding available for sale securities and held to maturity securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2024 and December 31, 2023:

Length of Time in Continuous Unrealized Loss Position

5 unchanged sentences

(Dollars in thousands)

March 31, 2024

June 30, 2024

Government and agency obligations $ — $ — — % $ 82,766 $ ( 5,330 ) 6.05 % $ 82,766 $ ( 5,330 ) 6.05 %

14 unchanged sentences

Total investment securities $ — $ — — % $ 103,829 $ ( 8,294 ) 7.40 % $ 103,829 $ ( 8,294 ) 7.40 %

There were thirty-four and thirty-four available for sale securities or held to maturity securities as of March 31, 2024 and December 31, 2023, respectively, in which the fair value of the security was less than the amortized cost of the security.

There were thirty-six and thirty-four available for sale securities or held to maturity securities as of June 30, 2024 and December 31, 2023, respectively, in which the fair value of the security was less than the amortized cost of the security.

Government and agency obligations owned are either direct obligations of the U.S.

3 unchanged sentences

The Company monitors its corporate bond, state agency and municipal bond portfolios and considers them to have minimal default risk.

The Company has the intent and ability to retain its investment securities in an unrealized loss position at March 31, 2024 until the decline in value has recovered or the security has matured.

The Company has the intent and ability to retain its investment securities in an unrealized loss position at June 30, 2024 until the decline in value has recovered or the security has matured.

Loans Receivable and ACL-Loans

The following table sets forth a summary of the loan portfolio at March 31, 2024 and December 31, 2023:

(In thousands) March 31, 2024 December 31, 2023

The following table sets forth a summary of the loan portfolio at June 30, 2024 and December 31, 2023:

(In thousands) June 30, 2024 December 31, 2023

Real estate loans:

17 unchanged sentences

Real estate is the primary form of collateral.

Other important forms of collateral are business assets, time deposits and marketable securities.

Other important forms of collateral are business assets, deposits and marketable securities.

While collateral provides assurance as a secondary source of repayment, the Company ordinarily requires the primary source of repayment for commercial loans to be based on the client’s ability to generate continuing cash flows.

The Company does not provide first or second lien consumer mortgage loans secured by residential properties but has a small legacy portfolio which continues to amortize, pay off due to the sale of the collateral, or refinance away from the Company.

The Company does not provide first or second lien residential mortgage loans secured by residential properties but has a small legacy portfolio which continues to amortize, pay off due to the sale of the collateral, or refinance away from the Company.

Credit quality of loans and the ACL-Loans

22 unchanged sentences

This portfolio segment includes loans to finance insurance premiums secured by the cash surrender value of life insurance and marketable securities, overdraft lines of credit, and unsecured personal loans to high net worth individuals.

The following tables set forth the activity in the Company’s ACL-Loans for the three months ended March 31, 2024 and 2023, by portfolio segment:

The following tables set forth the activity in the Company’s ACL-Loans for the three and six months ended June 30, 2024 and 2023, by portfolio segment:

Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total

(In thousands)

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Beginning balance $ 133 $ 21,666 $ 1,543 $ 4,078 $ 571 $ 27,991

1 unchanged sentence

Recoveries 141 113 — — 13 267

Provision (credit) for credit losses 116 4,022 ( 156 ) ( 314 ) 30 3,698

(Credit) provision for credit losses ( 142 ) 1,216 729 6,569 ( 4 ) 8,368

Ending balance $ 123 $ 22,473 $ 2,272 $ 10,647 $ 568 $ 36,083

1 unchanged sentence

(In thousands)

Three Months Ended March 31, 2023

Three Months Ended June 30, 2023

Beginning balance $ 207 $ 19,413 $ 1,070 $ 6,593 $ 715 $ 27,998

Charge-offs — — — — ( 25 ) ( 25 )

Recoveries — — — 32 11 43

(Credit) provision for credit losses ( 17 ) 535 728 163 1,269 2,678

Ending balance $ 190 $ 19,948 $ 1,798 $ 6,788 $ 1,970 $ 30,694

Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total

(In thousands)

Six Months Ended June 30, 2024

Beginning balance $ 149 $ 20,950 $ 1,699 $ 4,562 $ 586 $ 27,946

Charge-offs ( 141 ) ( 3,828 ) — ( 197 ) ( 61 ) ( 4,227 )

Recoveries 141 113 — 27 17 298

(Credit) provision for credit losses ( 26 ) 5,238 573 6,255 26 12,066

Ending balance $ 123 $ 22,473 $ 2,272 $ 10,647 $ 568 $ 36,083

Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total

(In thousands)

Six Months Ended June 30, 2023

Balance as of December 31, 2022 $ 163 $ 15,597 $ 311 $ 6,214 $ 146 $ 22,431

7 unchanged sentences

Generally, loans up for renewal are subject to a full credit evaluation before the renewal is granted and such loans are considered current period originations for purpose of the tables below.

The following tables present loans by origination and risk designation as of March 31, 2024 and December 31, 2023 (dollars in thousands):

Amortized Cost Balances by Origination Year as of March 31, 2024

The following tables present loans by origination and risk designation as of June 30, 2024 and December 31, 2023 (dollars in thousands):

Amortized Cost Balances by Origination Year as of June 30, 2024

2024 2023 2022 2021 2020 Prior Total

95 unchanged sentences

Current period charge-offs $ 83 $ — $ 213 $ — $ 440 $ 611 $ 1,347

Loans evaluated for impairment and the related ACL-Loans as of March 31, 2024 and December 31, 2023 were as follows:

Loans evaluated for impairment and the related ACL-Loans as of June 30, 2024 and December 31, 2023 were as follows:

Portfolio ACL-Loans

(In thousands)

March 31, 2024

June 30, 2024

Loans individually evaluated for impairment:

47 unchanged sentences

In addition to internal review at multiple points, outsourced loan review opines on risk ratings with regard to the sample of loans their review covers.

The following tables present credit risk ratings by loan segment as of March 31, 2024 and December 31, 2023:

The following tables present credit risk ratings by loan segment as of June 30, 2024 and December 31, 2023:

Commercial Credit Quality Indicators

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Commercial Real Estate Construction Commercial Business Total Commercial Real Estate Construction Commercial Business Total

7 unchanged sentences

Residential and Consumer Credit Quality Indicators

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Residential Real Estate Consumer Total Residential Real Estate Consumer Total

15 unchanged sentences

A loan is considered to be no longer delinquent when timely payments are made for a period of at least six months (one year for loans providing for quarterly or semi-annual payments) by the borrower in accordance with the contractual terms.

The following tables set forth certain information with respect to the Company's loan portfolio delinquencies by portfolio segment as of March 31, 2024 and December 31, 2023:

March 31, 2024

The following tables set forth certain information with respect to the Company's loan portfolio delinquencies by portfolio segment as of June 30, 2024 and December 31, 2023:

June 30, 2024

30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans

17 unchanged sentences

Total loans $ 6,763 $ 3,150 $ 11,365 $ 21,278 $ 2,697,329 $ 2,718,607

There w ere no lo ans delinquent greater than 90 days and still accruing interest as of March 31, 2024 or December 31, 2023.

There w ere no lo ans delinquent greater than 90 days and still accruing interest as of June 30, 2024 or December 31, 2023.

Loans on nonaccrual status

The following is a summary of nonaccrual loans by portfolio segment as of March 31, 2024 and December 31, 2023:

March 31, 2024 December 31, 2023

The following is a summary of nonaccrual loans by portfolio segment as of June 30, 2024 and December 31, 2023:

June 30, 2024 December 31, 2023

(In thousands)

4 unchanged sentences

Total $ 56,205 $ 49,207

Interest income on loans that would have been recognized if loans on nonaccrual status had been current in accordance with their original terms for the three months ended March 31, 2024 and 2023 was $ 0.9 million and $ 3.2 million, respectively.

At March 31, 2024 and December 31, 2023, there were no commitments to lend additional funds to any borrower on nonaccrual status.

Nonaccrual loans with no specific reserve totaled $ 37.8 million and $ 48.3 million at March 31, 2024 and December 31, 2023, respectively, as these loans were deemed to be adequately collateralized.

Interest income on loans that would have been recognized if loans on nonaccrual status had been current in accordance with their original terms for the six months ended June 30, 2024 and 2023 was $ 1.2 million and $ 4.2 million, respectively.

At June 30, 2024 and December 31, 2023, there were no commitments to lend additional funds to any borrower on nonaccrual status.

Nonaccrual loans with no specific reserve totaled $ 38.1 million and $ 48.3 million at June 30, 2024 and December 31, 2023, respectively, as these loans were deemed to be adequately collateralized.

Individually evaluated loans

2 unchanged sentences

When the Company classifies a problem loan as impaired, it evaluates whether a specific valuation allowance is required for that portion of the asset that is estimated to be impaired.

Beginning in the third quarter of 2023, the Company individually evaluates all insurance premium loans within the Consumer portfolio segment, irrespective of credit risk ratings.

The following table summarizes individually evaluated loans by portfolio segment as of March 31, 2024 and December 31, 2023.

The Company individually evaluates all insurance premium loans within the Consumer portfolio segment, irrespective of credit risk ratings.

The following table summarizes individually evaluated loans by portfolio segment as of June 30, 2024 and December 31, 2023.

Carrying Amount Unpaid Principal Balance Associated ACL-Loans

March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023

(In thousands)

14 unchanged sentences

Total individually evaluated loans $ 114,952 $ 105,005 $ 121,230 $ 107,084 $ 7,788 $ 955

The following table summarizes the average carrying amount of individually evaluated impaired loans and interest income recognized on individually evaluated loans by portfolio segment for the three months ended March 31, 2024 and 2023:

The following tables summarize the average carrying amount of individually evaluated loans and interest income recognized on individually evaluated loans by portfolio segment for the three and six months ended June 30, 2024 and 2023:

Average Carrying Amount Interest Income Recognized

Three Months Ended March 31, Three Months Ended March

Three Months Ended June 30, Three Months Ended June 30,

2024 2023 2024 2023

(In thousands)

Individually evaluated impaired loans without a valuation allowance:

Individually evaluated loans without a valuation allowance:

Residential real estate $ 3,640 $ 3,794 $ 42 $ 20

3 unchanged sentences

Consumer 26,156 — 400 —

Total individually evaluated impaired loans without a valuation allowance 99,784 17,519 1,335 64

Individually evaluated impaired loans with a valuation allowance:

Total individually evaluated loans without a valuation allowance 97,510 19,984 1,205 60

Individually evaluated loans with a valuation allowance:

Residential real estate $ — $ — $ — $ —

3 unchanged sentences

Consumer — — — —

Total individually evaluated impaired loans with a valuation allowance 8,698 23,911 161 156

Total individually evaluated impaired loans $ 108,482 $ 41,430 $ 1,496 $ 220

Total individually evaluated loans with a valuation allowance 17,898 15,890 878 87

Total individually evaluated loans $ 115,408 $ 35,874 $ 2,083 $ 147

Average Carrying Amount Interest Income Recognized

Six Months Ended June 30, Six Months Ended June

2024 2023 2024 2023

(In thousands)

Individually evaluated loans without a valuation allowance:

Residential real estate $ 3,656 $ 3,814 $ 85 $ 40

Commercial real estate 57,247 1,912 1,094 —

Commercial business 12,745 5,035 618 84

Construction — 9,382 — —

Consumer 25,840 — 736 —

Total individually evaluated loans without a valuation allowance 99,488 20,143 2,533 124

Individually evaluated loans with a valuation allowance:

Residential real estate $ — $ — $ — $ —

Commercial real estate — 15,891 — 173

Commercial business 8,607 — 1,039 —

Construction 9,382 — — —

Consumer — — — —

Total individually evaluated loans with a valuation allowance 17,989 15,891 1,039 173

Total individually evaluated loans $ 117,477 $ 36,034 $ 3,572 $ 297

Loan Modifications

2 unchanged sentences

Modified terms are dependent upon the financial position and needs of the individual borrower.

There were no new loan modifications reportable under ASU 2022-02 at March 31, 2024 and December 31, 2023.

There were no new loan modifications reportable under ASU 2022-02 at June 30, 2024 and December 31, 2023.

The following table provides information on loans that were modified during the periods indicated.

1 unchanged sentence

(Dollars in thousands) 2024 2023 2024 2023 2024 2023

Three Months Ended March 31,

Three Months Ended June 30,

Residential real estate — — $ — $ — $ — $ —

2 unchanged sentences

Total — — $ — $ — $ — $ —

The following table provides information on how loans were modified during the three months ended March 31, 2024 and March 31, 2023.

Three Months Ended March 31,

(In thousands)

Payment concession $ — $ —

Maturity, rate and payment concession — —

Rate concession — —

Number of Loans Pre-Modification Post-Modification

(Dollars in thousands) 2024 2023 2024 2023 2024 2023

Six Months Ended June 30,

Residential real estate — — $ — $ — $ — $ —

Commercial business — — — — — —

Commercial real estate — — — — — —

Total — — $ — $ — $ — $ —

Allowance for credit losses (ACL)-Unfunded Commitments

As part of adoption of CECL, the Company has recorded ACL-Unfunded Commitments in A ccrued expenses and other liabilities .

The Company has recorded ACL-Unfunded Commitments in A ccrued expenses and other liabilities .

The provision is recorded within the Provision for credit losses on the Company’s Consolidated Statements of Income.

The following table presents a roll forward of the ACL-Unfunded Commitments for the three months ended March 31, 2024 and March 31, 2023:

Three Months Ended March 31,

The following table presents a roll forward of the ACL-Unfunded Commitments for the three and six months ended June 30, 2024 and June 30, 2023:

Three Months Ended June 30, Six Months Ended June 30,

2024 2023 2024 2023

(In thousands)

5 unchanged sentences

Components of Provision for Credit Losses

The following table summarizes the Provision for credit losses for the three months ended March 31, 2024 and March 31, 2023:

Three Months Ended March 31,

The following table summarizes the Provision for credit losses for the three and six months ended June 30, 2024 and June 30, 2023:

Three Months Ended June 30, Six Months Ended June 30,

2024 2023 2024 2023

(In thousands)

3 unchanged sentences

Shareholders' Equity

The Company has 10,000,000 shares authoriz ed and 7,908,180 shares issued and outstanding at March 31, 2024 and 10,000,000 shares authorized and 7,882,616 shares issued and outstanding at December 31, 2023.

The Company has 10,000,000 shares authoriz ed and 7,866,499 shares issued and outstanding at June 30, 2024 and 10,000,000 shares authorized and 7,882,616 shares issued and outstanding at December 31, 2023.

The Company's stock is traded on the Nasdaq Global Market under the ticker symbol BWFG.

7 unchanged sentences

The timing, price and volume of repurchases will be based on market conditions, relevant securities laws and other factors.

The share repurchase plan does not obligate the Company to acquire any particular amount of Common Stock, and it may b e modified or suspended at any time at the Company's discretion.

During the three months ended March 31, 2024, the Company purchased 36,180 shares of its Common Stock at a weighted average price of $ 25.38 per share.

The share repurchase plan does not obligate the Company to acquire any particular amount of Common Stock, and it may be modified or suspended at any time at the Company's discretion.

During the six months ended June 30, 2024, the Company purchased 76,320 shares of its Common Stock at a weighted average price of $ 24.95 per share.

During the year ended December 31, 2023, the Company had no purchases of Common Stock.

3 unchanged sentences

Changes in fair value of the Company's cash flow swap derivatives are primarily driven by changes in interest rates and recognized in other comprehensive income.

The Company’s total compreh ensive income or loss for the three March 31, 2024 and March 31, 2023 is reported in the Consolidated Statements of Comprehensive Income.

The following tables present the changes in accumulated other comprehensive (loss) income by component, net of tax for the three months ended March 31, 2024 and March 31, 2023:

The Company’s total compreh ensive income or loss for the three and six months ended June 30, 2024 and June 30, 2023 is reported in the Consolidated Statements of Comprehensive Income.

The following tables present the changes in accumulated other comprehensive (loss) income by component, net of tax for the three and six months ended June 30, 2024 and June 30, 2023:

Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total

(In thousands)

Balance at December 31, 2023 $ ( 5,810 ) $ 4,146 $ ( 1,664 )

Balance at March 31, 2024 $ ( 5,926 ) $ 4,207 $ ( 1,719 )

Other comprehensive income (loss) before reclassifications, net of tax 304 420 724

Amounts reclassified from accumulated other comprehensive (loss) income, net of tax — ( 961 ) ( 961 )

Net other comprehensive income (loss) 304 ( 541 ) ( 237 )

Balance at June 30, 2024 $ ( 5,622 ) $ 3,666 $ ( 1,956 )

Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total

(In thousands)

Balance at March 31, 2023 $ ( 6,116 ) $ 4,982 $ ( 1,134 )

Other comprehensive (loss) income before reclassifications, net of tax ( 1,495 ) 1,770 275

Amounts reclassified from accumulated other comprehensive income, net of tax — ( 603 ) ( 603 )

Amounts reclassified from accumulated other comprehensive (loss) income, net of tax — ( 857 ) ( 857 )

Net other comprehensive (loss) income ( 1,495 ) 913 ( 582 )

Balance at March 31, 2024 $ ( 5,926 ) $ 4,207 $ ( 1,719 )

Balance at June 30, 2023 $ ( 7,611 ) $ 5,895 $ ( 1,716 )

Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total

1 unchanged sentence

Balance at December 31, 2023 $ ( 5,810 ) $ 4,146 $ ( 1,664 )

Other comprehensive income (loss) before reclassifications, net of tax 188 1,695 1,883

Amounts reclassified from accumulated other comprehensive (loss) income, net of tax — ( 2,175 ) ( 2,175 )

Net other comprehensive income (loss) 188 ( 480 ) ( 292 )

Balance at June 30, 2024 $ ( 5,622 ) $ 3,666 $ ( 1,956 )

Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total

(In thousands)

Balance at December 31, 2022 $ ( 6,750 ) $ 6,561 $ ( 189 )

Other comprehensive (loss) income before reclassifications, net of tax ( 861 ) 973 112

Amounts reclassified from accumulated other comprehensive income, net of tax — ( 782 ) ( 782 )

Amounts reclassified from accumulated other comprehensive (loss) income, net of tax — ( 1,639 ) ( 1,639 )

Net other comprehensive (loss) income ( 861 ) ( 666 ) ( 1,527 )

Balance at March 31, 2023 $ ( 6,116 ) $ 4,982 $ ( 1,134 )

Balance at June 30, 2023 $ ( 7,611 ) $ 5,895 $ ( 1,716 )

The following table provides information for the items reclassified from accumulated other comprehensive income or loss:

Accumulated Other Comprehensive Income Components Three Months Ended March 31, Associated Line Item in the Consolidated Statements of Income

Accumulated Other Comprehensive Income Components Three Months Ended June 30, Six Months Ended June 30, Associated Line Item in the Consolidated Statements of Income

2024 2023 2024 2023

(In thousands)

Unrealized gains (losses) on derivatives $ 1,257 $ 982 Interest expense on borrowings

Tax (expense) benefit ( 654 ) ( 200 ) Income tax expense

Unrealized gains on derivatives $ 1,257 $ 1,112 $ 2,514 $ 2,094 Interest expense on borrowings

Tax expense ( 296 ) ( 255 ) ( 339 ) ( 455 ) Income tax expense

Net of tax $ 961 $ 857 $ 2,175 $ 1,639

7 unchanged sentences

The following table is a reconciliation of earnings available to common shareholders and basic weighted average common shares outstanding to diluted weighted average common shares outstanding, reflecting the application of the two-class method:

Three Months Ended March 31,

Three Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

(In thousands, except per share data)

7 unchanged sentences

Effect of dilutive equity-based awards (2)

( 24 ) 9 16 66

Weighted average shares outstanding, diluted 7,724 7,602 7,722 7,640

12 unchanged sentences

Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements.

As of March 31, 2024, the Bank and Company met all capital adequacy requirements to which they are subject.

As of June 30, 2024, the Bank and Company met all capital adequacy requirements to which they are subject.

There are no conditions or events since then that management believes have changed this conclusion.

The capital amounts and ratios for the Bank and the Company at March 31, 2024 and December 31, 2023 were as follows:

The capital amounts and ratios for the Bank and the Company at June 30, 2024 and December 31, 2023 were as follows:

Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions

2 unchanged sentences

Bankwell Bank

March 31, 2024

June 30, 2024

Common Equity Tier 1 Capital to Risk-Weighted Assets $ 324,443 11.67 % $ 194,589 7.00 % $ 180,690 6.50 %

6 unchanged sentences

Bankwell Financial Group, Inc.

March 31, 2024

June 30, 2024

Common Equity Tier 1 Capital to Risk-Weighted Assets $ 265,918 9.56 % $ 125,229 4.50 % $ 180,886 6.50 %

25 unchanged sentences

Reserve Requirements on Cash

The Bank was not required to maintain a minimum reserve balance in the Federal Reserve Bank (FRB) at March 31, 2024 or December 31, 2023.

At March 31, 2024 and December 31, 2023, deposits consisted of the following:

March 31, 2024 December 31, 2023

The Bank was not required to maintain a minimum reserve balance in the Federal Reserve Bank (FRB) at June 30, 2024 or December 31, 2023.

At June 30, 2024 and December 31, 2023, deposits consisted of the following:

June 30, 2024 December 31, 2023

(In thousands)

7 unchanged sentences

Total deposits $ 2,662,375 $ 2,736,757

Maturities of time certificates of deposit as of March 31, 2024 and December 31, 2023 are summarized below:

March 31, 2024 December 31, 2023

Maturities of time certificates of deposit as of June 30, 2024 and December 31, 2023 are summarized below:

June 30, 2024 December 31, 2023

(In thousands)

1 unchanged sentence

2025 679,845 318,961

After 2028 16,225 16,213

2026 1,413 24

2028 and thereafter 16,249 16,213

Total $ 1,294,319 $ 1,315,073

The aggregate amount of individual certificate accounts, with balances of $250,000 or more, was approximately $ 172.3 million at March 31, 2024 and $ 151.6 million at December 31, 2023.

Brokered certificates of deposits tot aled $ 780.5 million at March 31, 2024 and $ 860.5 million at December 31, 2023, respectively.

Brokered money market accounts totaled $ 51.4 million at March 31, 2024 and $ 91.4 million at December 31, 2023, respectively.

There were no certificates of deposits from national l isting services, one-way buy Certificate of Deposit Account Registry Service ("CDARS") or one-way buy Insured Cash Sweep Service ("ICS") at March 31, 2024 or December 31, 2023.

The aggregate amount of individual certificate accounts, with balances of $250,000 or more, was approximately $ 179.9 million at June 30, 2024 and $ 151.6 million at December 31, 2023.

Brokered certificates of deposits tot aled $ 755.5 million at June 30, 2024 and $ 860.5 million at December 31, 2023, respectively.

Brokered money market accounts totaled $ 52.1 million at June 30, 2024 and $ 91.4 million at December 31, 2023, respectively.

Brokered deposits are comprised of Brokered CDs, brokered money market accounts, one-way buy CDARS, and one-way buy ICS.

The following table summarizes interest expense on deposits by account type for the three months ended March 31, 2024 and 2023:

Three Months Ended March 31,

The following table summarizes interest expense on deposits by account type for the three and six months ended June 30, 2024 and 2023:

Three Months Ended June 30, Six Months Ended June 30,

2024 2023 2024 2023

(In thousands)

11 unchanged sentences

To date, all equity awards have been in the form of stock options or restricted stock.

At March 31, 2024, there were 275,791 shares reserved for future issuance under the 2022 Plan.

At June 30, 2024, there were 277,333 shares reserved for future issuance under the 2022 Plan.

Restricted Stock :

2 unchanged sentences

Restricted stock awards generally vest over one to five years .

The following table presents the activity for restricted stock for the three months ended March 31, 2024:

Three Months Ended March 31, 2024

The following table presents the activity for restricted stock for the six months ended June 30, 2024:

Six Months Ended June 30, 2024

Number of Shares Weighted Average Grant Date Fair Value

4 unchanged sentences

Unvested at end of period 231,525

(1) Inclu des 33,115 shares of performan ce based restricted stock.

(1) Inclu des 33,115 shares of performance based restricted stock.

(2) Includes 18,598 shares of performance based restricted stock.

(3) Includes 15,694 shares of performance based restricted stock.

The total fair value of restricted stock awards vested during the three months ended March 31, 2024 was $ 2.2 million.

The Company's restricted stock expense for the three months ended March 31, 2024 and March 31, 2023 was $ 1.1 million and $ 0.7 million, respectively.

At March 31, 2024, there wa s $ 6.5 million of unrecognized stock compensation expense for restricted stock, expected to be recognized over a weighted average period of 1.4 years.

The total fair value of restricted stock awards vested during the six months ended June 30, 2024 was $ 2.2 million.

The Company's restricted stock expense fo r the six months ended June 30, 2024 and June 30, 2023 was $ 1.7 million and $ 1.4 million, respectively.

At June 30, 2024, there was $ 6.5 million of unrecognized stock compensation expense for restricted stock, expected to be recognized over a weighted average period of 1.2 years.

Performance Based Restricted Stock :

The Compa ny has 36,019 s hares of performance based restricted stock outstanding as of March 31, 2024 pursuant to the Company’s Stock Plans.

The Compa ny has 36,019 s hares of performance based restricted stock outstanding as of June 30, 2024 pursuant to the Company’s Stock Plans.

The awards vest over a three year service period, provided certain performance metrics are met.

4 unchanged sentences

The Company does not use derivatives for speculative purposes.

As of March 31, 2024, the Company was a party to five cash flow swaps, designated as hedging instruments, to add stability to interest expense and to manage its exposure to the variability of the future cash fl ows attributable to the contractually specified interest rates.

As of June 30, 2024, the Company was a party to five cash flow swaps, designated as hedging instruments, to add stability to interest expense and to manage its exposure to the variability of the future cash fl ows attributable to the contractually specified interest rates.

The notional amount for each swap is $ 25 million and in each case, the Company has entered into pay-fixed cash flow swaps to convert rolling 90 - day Federal Home Loan Bank advances or brokered deposits.

2 unchanged sentences

The underlying debt associated with the terminated swaps was kept in place.

The fair value of the terminated swaps totaled $ 137.7 thousand as of March 31, 2024.

The fair value of the terminated swaps totaled $ 134.4 thousand as of June 30, 2024.

The fair value of the terminated swaps will be reclassified from other comprehensive income to interest expense on a straight-line basis over the original term of the hedging relationship.

The Company entered into one pay-fixed portfolio layer method fair value swap, designated as a hedging instrument, with a total notional amount of $ 150 million in the first quarter of 2023.

The Company has one pay-fixed portfolio layer method fair value swap, designated as a hedging instrument, with a total notional amount of $ 150 million.

The Company designated the fair value swap under the portfolio layer method (“PLM”).

2 unchanged sentences

The carrying value of the fair value swap on the Consolidated Balance Sheets will also be adjusted through interest income, based on changes in fair value attributable to changes in the hedged risk.

The following table represents the carrying value of the portfolio layer method hedged asset and the cumulative fair value hedging adjustment included in the carrying value of the hedged asset as of March 31, 2024 and December 31, 2023:

March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023

Carrying Value of Hedged Asset Hedged Items

3 unchanged sentences

(1) These amounts include the amortized cost basis of closed portfolios of fixed rate loans used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period.

As of March 31, 2024 and December 31, 2023, the amortized cost basis of the closed portfolio used in this hedging relationship was $ 587.4 million and $ 611.5 million , the cumulative basis adjustments associated with this hedging relationships was $ 1.2 million and $ 1.1 million, respectively.

As of March 31, 2024 and December 31, 2023, t he amount of the designated hedged item was $ 150.0 million, respectively.

As of March 31, 2024, the Company has interest rate swaps not designated as hedging instruments, to minimize interest rate risk exposure with loans to clients.

As of June 30, 2024 and December 31, 2023, the amortized cost basis of the closed portfolio used in this hedging relationship was $ 575.9 million and $ 611.5 million , the cumulative basis adjustments associated with this hedging relationships was $ 1.8 million and $ 1.1 million, respectively.

As of June 30, 2024 and December 31, 2023, t he amount of the designated hedged item was $ 150.0 million, respectively.

As of June 30, 2024, the Company has interest rate swaps not designated as hedging instruments, to minimize interest rate risk exposure with loans to clients.

The Company accounts for all non-client related interest rate swaps as either effective cash flow or fair value swaps.

5 unchanged sentences

As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the client derivatives and the offsetting derivatives are recognized directly in earnings.

Information about derivative instruments at March 31, 2024 and December 31, 2023 is as follows:

As of March 31, 2024

Information about derivative instruments at June 30, 2024 and December 31, 2023 is as follows:

As of June 30, 2024

Derivative Assets Derivative Liabilities

8 unchanged sentences

(1) Represents interest rate swaps with commercial banking clients, which are offset by derivatives with a third party.

Accru ed interest receivables related to interest rate swaps as of March 31, 2024 totaled $ 0.9 million and is excluded from the fair value presented in the table above.

The fair value of interest rate swaps in a net asset position, including accrued interest, totaled $ 7.0 million as of March 31, 2024.

Accru ed interest receivables related to interest rate swaps as of June 30, 2024 totaled $ 0.9 million and is excluded from the fair value presented in the table above.

The fair value of interest rate swaps in a net asset position, including accrued interest, totaled $ 6.6 million as of June 30, 2024.

As of December 31, 2023

19 unchanged sentences

The Company does not offset derivative assets and derivative liabilities for financial statement presentation purposes.

Changes in the consolidated statements of comprehensive income (loss) related to interest rate derivatives designated as hedges of cash flows were as follows for the three months ended March 31, 2024 and March 31, 2023:

Three Months Ended March 31,

Changes in the consolidated statements of comprehensive income (loss) related to interest rate derivatives designated as hedges of cash flows were as follows for the three and six months ended June 30, 2024 and June 30, 2023:

Three Months Ended June 30, Six Months Ended June 30,

(In thousands) 2024 2023 2024 2023

6 unchanged sentences

Generally, a lower interest rate environment will result in a negative impact to comprehensive income whereas a higher interest rate environment will result in a positive impact to comprehensive income.

The following table summarizes the effect of the fair value hedging relationship recognized in the consolidated statements of income for the three months ended March 31, 2024 and March 31, 2023:

Three Months Ended March 31,

The following table summarizes the effect of the fair value hedging relationship recognized in the consolidated statements of income for the three and six months ended June 30, 2024 and June 30, 2023:

Three Months Ended June 30, Six Months Ended June 30,

(In thousands) 2024 2023 2024 2023

2 unchanged sentences

Fair value derivative designated as hedging instrument 610 3,358 1,772 1,005

Total (loss) gain recognized in the consolidated statements of income within interest and fees on loans $ ( 828 ) $ 50

The following tables summarize gross and net information about derivative instruments that are offset in the Consolidated Balance Sheets at March 31, 2024 and December 31, 2023:

March 31, 2024

Total gain (loss) recognized in the consolidated statements of income within interest and fees on loans $ 418 $ 274 $ ( 88 ) $ 325

The following tables summarize gross and net information about derivative instruments that are offset in the Consolidated Balance Sheets at June 30, 2024 and December 31, 2023:

June 30, 2024

(In thousands)

4 unchanged sentences

(1) Includes accru ed interest receivable totaling $ 923 thousand .

March 31, 2024

June 30, 2024

(In thousands)

3 unchanged sentences

Derivative liabilities $ 4,432 $ — $ 4,432 $ — $ — $ 4,432

(1) Includes net ac crued interest payable totaling $ 74 thousand.

(1) Includes ac crued interest payable totaling $ 70 thousand .

December 31, 2023

28 unchanged sentences

Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk.

The carrying values, fair values and placement in the fair value hierarchy of the Company's financial instruments at March 31, 2024 and December 31, 2023 were as follows:

March 31, 2024

The carrying values, fair values and placement in the fair value hierarchy of the Company's financial instruments at June 30, 2024 and December 31, 2023 were as follows:

June 30, 2024

Carrying Value Fair Value Level 1 Level 2 Level 3

55 unchanged sentences

Level 3 held to maturity securities represent private placement municipal housing authority bonds for which no quoted market price is available.

The fair value for these securities is estimated using a discounted cash flow model, using discount rates ranging from 4.8 % to 6.9 % as of March 31, 2024 and 4.5 % to 6.9 % as of December 31, 2023.

The fair value for these securities is estimated using a discounted cash flow model, using discount rates ranging from 5.3 % to 7.1 % as of June 30, 2024 and 4.5 % to 6.9 % as of December 31, 2023.

These securities are CRA eligible investments.

23 unchanged sentences

Off-balance-sheet instruments:

Loan commitments on which the committed interest rate is less than the current market rate are insignificant at March 31, 2024 and December 31, 2023 .

Loan commitments on which the committed interest rate is less than the current market rate are insignificant at June 30, 2024 and December 31, 2023 .

Fair Value Measurements

13 unchanged sentences

Financial instruments measured at fair value on a recurring basis

The following table details the financial instruments carried at fair value on a recurring basis at March 31, 2024 and December 31, 2023, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value.

The Company had no transfers into or out of Levels 1, 2 or 3 during the three months ended March 31, 2024 and for the year ended December 31, 2023.

The following table details the financial instruments carried at fair value on a recurring basis at June 30, 2024 and December 31, 2023, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value.

The Company had no transfers into or out of Levels 1, 2 or 3 during the six months ended June 30, 2024 and for the year ended December 31, 2023.

(In thousands) Level 1 Level 2 Level 3

March 31, 2024:

June 30, 2024:

Marketable equity securities $ 2,079 $ — $ —

22 unchanged sentences

These include assets that are measured at the lower-of-cost-or-market that were recognized at fair value below cost at the end of the period as well as assets that are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.

The following table details the financial instruments measured at fair value on a nonrecurring basis at March 31, 2024 and December 31, 2023, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value:

The following table details the financial instruments measured at fair value on a nonrecurring basis at June 30, 2024 and December 31, 2023, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value:

(In thousands) Level 1 Level 2 Level 3

March 31, 2024:

June 30, 2024:

Individually evaluated loans $ — $ — $ 107,164

3 unchanged sentences

Servicing asset, net — — 865

The following table presents information about quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on a nonrecurring basis at March 31, 2024 and December 31, 2023:

The following table presents information about quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on a nonrecurring basis at June 30, 2024 and December 31, 2023:

Fair Value Valuation Methodology Unobservable Input Range

(Dollars in thousands)

March 31, 2024:

June 30, 2024:

Individually evaluated loans $ 39,004 Appraisals Discount to appraised value 8.00 %

41 unchanged sentences

The Company capitalized these costs and they have been presented within subordinated debentures on the consolidated balance sheets.

At March 31, 2024 and December 31, 2023, unamortize d debt issuance costs were $ 0.7 million and $ 0.8 million, respectively.

Debt issuance costs amortize over the expected life of the related debt.

For the three months ended March 31, 2024 and 2023 the amortization expense for debt issuance costs were $ 62 thousand and $ 62 thousand, respectively, and were recognized as an increase to interest expense on borrowings within the Consolidated Statements of Income.

The Co mpany recognized $ 0.8 million and $ 0.8 million in interest expense related to its subordinated debt for the three-month periods ended March 31, 2024 and 2023, respectively.

At June 30, 2024 and December 31, 2023, unamortize d debt issuance costs were $ 0.7 million and $ 0.8 million, respectively.

Debt issuance costs amortize over the exp ected life of the related debt.

For the three months ended June 30, 2024 and 2023 the amortization expense for debt issuance costs were $ 62 thousand and $ 62 thousand, respectively, and were recognized as an increase to interest expense on borrowings within the Consolidated Statements of Income.

For the six months ended June 30, 2024 and 2023 the amortization expense for debt issuance costs were $ 123 thousand and $ 123 thousand, respectively.

The Company recognized $ 0.8 million and $ 0.8 million in interest expense related to its subordinated debt for the three-month periods ended June 30, 2024 and 2023, respectively.

The Company recognized $ 1.6 million and $ 1.6 million in interest expense related to its subordinated debt for the six-month periods ended June 30, 2024 and 2023, respectively.

Subsequent Events

On April 24, 2024, the Company’s Board of Directors declared a $ 0.20 per share cash dividend, payable on May 21, 2024, to shareholders of record on May 10, 2024.

Subsequent to March 31, 2024, the Company purchased 9,744 shares at a weighted average price of $ 25.14 per share.

On July 24, 2024, the Company’s Board of Directors declared a $ 0.20 per share cash dividend, payable on August 23, 2024, to shareholders of record on August 12, 2024.

Subsequent to June 30, 2024, through July 11, 2024, the Company purchased 9,670 shares at a weighted average price of $ 23.86 per share.

On July 31, 2024, a $ 3.0 million nonaccrual commercial real estate non-owner occupied loan was sold.

As of July 31, 2024, nonaccrual loans were $ 53.1 million compared to $ 56.2 million as of June 30, 2024.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements