Bankwell Financial Group in New Canaan, Conn., said its third-quarter results will be hit by an $8.2 million charge-off.
The $3.1 billion-asset company said in a regulatory filing that the charge-off is tied to a $13.7 million commercial real estate loan. The loan is secured by a Class A suburban New Jersey office park, where Bankwell is a 17% participant in an $84 million multibank club deal.
The loan went into nonperforming status in the second quarter and had no previous reserve because of the then-current appraised valuation of $105.1 million. The borrower has been in payment default since Sept. 30 and the bank group has begun a foreclosure process.
A new appraisal valued the property at $36.2 million.
Bankwell still has about $5.5 million of exposure following the chargeoff.