Bankwell Financial Group, Inc.BWFG

Bankwell Financial Group, Inc. Leases Disclosure

10-KFiled Mar 4, 20262 min read
Leases
As of December 31, 2025, the Company leases real estate for nine full-service branch locations and headquarter office under various operating lease agreements. The Bank also operates in a limited service Domestic Representative Office in New Canaan, Connecticut and in Garden City, New York. During 2025, the Bank received regulatory approval from the FDIC, the CT DOB, and the NY DFS to establish a new full-service branch in Brooklyn, New York, which opened during the first quarter of 2026. The branch leases and the limited service Domestic Representative Office have maturities ranging from 2028 to 2033, some of which include options to extend the lease term. The Company is not reasonably certain to exercise these renewal options, and as a result, these optional periods are not included in determining the lease term. The weighted average remaining life of the lease term for these leases was 4.5 years as of December 31, 2025.

The Company utilized a weighted average discount rate of 5.2% in determining the lease liability for its branch locations and limited service Domestic Representative Office and a discount rate of 4.5% for its headquarters office.

The total fixed operating lease costs were $2.3 million and $2.2 million for the years ended December 31, 2025 and December 31, 2024, respectively. The total variable operating lease costs were $0.3 million and $0.2 million for the years ended December 31, 2025 and December 31, 2024, respectively. The right-of-use-asset, included in premises and equipment, net was $10.0 million as of December 31, 2025 and the corresponding lease liability, included in accrued expenses and other liabilities was $11.0 million and $12.0 million as of December 31, 2025 and December 31, 2024, respectively.
Future minimum lease payments as of December 31, 2025 are as follows:
December 31, 2025
(In thousands)
2026$2,546 
20272,518 
20282,318 
20292,101 
20301,790 
Thereafter1,329 
Total$12,602 

A reconciliation of the undiscounted cash flows in the maturity table above and the lease liability recognized in the consolidated balance sheet as of December 31, 2025, is shown below:
December 31, 2025
(In thousands)
Undiscounted cash flows$12,602 
Discount effect of cash flows(1,650)
Lease liability$10,952 

Historical Timeline

Fiscal YearFiled
2025Mar 4, 2026Showing above
2024Mar 5, 2025
2023Mar 12, 2024
2022Mar 8, 2023
2021Mar 8, 2022
2020Mar 10, 2021
2019Feb 28, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

Income TaxesEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesDebtCommitmentsNew Standards