The Bank Slate


Bankwell in Conn. reserving $6.6M tied to nonperforming C&I loan

Bankwell Financial Group in New Canaan, Conn., is bracing for a $6.6 million hit tied to a nonperforming commercial loan.

The $3.2 billion-asset company disclosed in a regulatory filing that it will take specific reserves against a $8.7 million C&I loan that has been classified as nonperforming since the end of last year.

Bankwell, which had already reserved $400,000 for the loan, said it has about $1.7 million in remaining exposure.

The company said the loan, originated in 2022, was the sole senior secured tranche of a $28 million financing to back a sponsor-owned pediatric dental practice. The sponsor and seller are engaged in litigation, causing unresolved billing issues and restricted cash flows.

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