Financial Performance - FinWise Bancorp reported revenue of $22.09 million for the quarter ended March 2025, marking a year-over-year increase of 13.5% [1] - The earnings per share (EPS) for the same period was $0.23, compared to $0.25 a year ago, indicating a decline [1] - The reported revenue was a surprise of -2.21% compared to the Zacks Consensus Estimate of $22.59 million [1] - The EPS surprise was -8.00% against the consensus estimate of $0.25 [1] Key Metrics - The efficiency ratio was reported at 64.8%, slightly above the two-analyst average estimate of 64.3% [4] - The net interest margin was 8.3%, lower than the average estimate of 9.8% based on two analysts [4] - Total interest-earning assets amounted to $700.50 million, exceeding the average estimate of $656.54 million [4] - Non-performing loans were reported at $29.88 million, significantly lower than the average estimate of $46.24 million [4] - The net charge-offs to average loans ratio was 1.9%, better than the average estimate of 2.6% [4] - Total non-interest income was $7.81 million, surpassing the average estimate of $6.57 million [4] - Net interest income was reported at $14.28 million, below the average estimate of $15.98 million [4] Stock Performance - Shares of FinWise Bancorp have returned -9.4% over the past month, compared to a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential outperformance against the broader market in the near term [3]

FinWise Bancorp (FINW) came out with quarterly earnings of $0.23 per share, missing the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -8%. A quarter ago, it was expected that this company would post earnings of $0.20 per share when it actually produced earnings of $0.20, delivering no surprise.Over the last four quarters, the company has surpasse ...

April 2025 Disclaimers "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the current views of FinWise Bancorp ("FinWise," "we," "us," or the "Company") with respect to, among other things, future events and its financial performance. These statements are often, but not always, made ...

Financial Data and Key Metrics Changes - The company originated approximately $1.3 billion in loans during the first quarter, with a tangible book value per common share increasing to $13.42 from $13.15 in the prior quarter [3][4] - Net income for the first quarter was $3.2 million, or $0.23 per diluted common share, with net interest income declining to $14.3 million from $15.5 million in the prior quarter [10][11] - The net interest margin (NIM) decreased to 8.27% from 10% in the prior quarter, primarily due to a change in the mix of loan originations and lower rates on variable rate loans [11][12] Business Line Data and Key Metrics Changes - The largest student lending program had strong originations but is expected to decelerate in the second quarter due to school calendars [6] - SBA seven loan originations decreased slightly quarter over quarter, driven by a lower average loan size, while equipment leasing and owner-occupied commercial real estate lines showed solid growth [7][8] - The provision for credit losses was $3.3 million in Q1, down from $3.9 million in the prior quarter, with non-performing asset (NPA) balances reduced to $29.9 million from $36.5 million [9] Market Data and Key Metrics Changes - Average loan balances increased to $565 million from $522 million in the prior quarter, with average interest-bearing deposits rising to $430 million from $355 million [10][11] - The company expects gradual growth driven by existing programs and new partnerships, with loan originations tracking at a quarterly rate of $1.2 billion in early April [5][6] Company Strategy and Development Direction - The company announced a new strategic program agreement with Fintech partner BACT to provide business installment loans to small and medium-sized businesses [4] - The focus remains on migrating the loan portfolio to a lower risk profile while maintaining profitability and increasing tangible book value [3][5] - The company anticipates that the credit enhanced balance sheet program will significantly contribute to earnings in 2025, particularly in the second half of the year [5][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term outlook for the business, despite a more uncertain macro environment [5] - The company is closely monitoring economic conditions but remains comfortable with the guidance for gradual growth from new partners throughout 2025 [36] - Concerns about potential macro risks, such as a slowdown in consumer spending, were acknowledged, but no immediate issues were reported [36] Other Important Information - The efficiency ratio remained relatively flat at 64.8%, with expectations for future decreases as revenue from new programs materializes [14] - The effective tax rate for the first quarter was 28.1%, with an expected rate of approximately 27.5% for 2025 [15] Q&A Session Summary Question: What is the current expense run rate and expectations for future expenses? - Management indicated that the efficiency ratio is around 64.8%, with expenses expected to remain flat and increase as revenues grow [19][21] Question: What is the outlook for net interest income (NII) growth given margin pressures? - Management expects NII growth to come from a return to normal origination levels and growth in traditional banking products, despite a continued decline in NIM [22][24] Question: What are the current credit enhanced loan balances and the timeline for growth? - The credit enhanced portfolio balance was slightly under $2 million at the end of the quarter, with expectations to reach $50 million to $100 million by year-end with existing partners [31][30] Question: How does the company view the health of its strategic partners in the current market? - Management reported no concerns about strategic partners, with origination levels remaining healthy and a gradual pickup expected from newer partners [36] Question: What is the yield on owner-occupied commercial real estate loans? - The gross yield on owner-occupied commercial real estate loans is expected to be around prime minus 100 basis points [63]

Exhibit 99.1 FINWISE BANCORP REPORTS FIRST QUARTER 2025 RESULTS - Loan Originations of $1.3 Billion - - Net Income of $3.2 Million - - Diluted Earnings Per Share of $0.23 - First Quarter 2025 Highlights "Our business model remained resilient in the first quarter, even amidst a more uncertain macro environment," said Kent Landvatter, Chairman and CEO of FinWise. "We posted solid loan originations and encouraging credit quality metrics, as both non-performing loan balances and net charge-offs declined sequent ...

Core Insights - FinWise Bancorp reported solid financial performance for the first quarter of 2025, with loan originations of $1.3 billion and net income of $3.2 million, reflecting a resilient business model despite macroeconomic uncertainties [2][4][6]. Financial Performance - Loan originations totaled $1.3 billion, consistent with the previous quarter and up from $1.1 billion year-over-year [6][8]. - Net income for the quarter was $3.2 million, an increase from $2.8 million in the prior quarter but a slight decrease from $3.3 million in the same quarter last year [6][16]. - Diluted earnings per share (EPS) were $0.23, compared to $0.20 in the previous quarter and $0.25 in the same quarter last year [6][16]. - Net interest income decreased to $14.3 million from $15.5 million in the prior quarter, but increased from $14.0 million year-over-year [6][7]. Asset Quality - Nonperforming loans decreased to $29.9 million, or 6.1% of total loans held-for-investment, down from $36.5 million (7.8%) in the previous quarter [25][26]. - The allowance for credit losses was $14.2 million, representing 2.9% of total loans held-for-investment [28]. Balance Sheet - Total assets increased to $804.1 million, up from $746.0 million in the previous quarter and $610.8 million year-over-year [17][40]. - Total deposits rose to $605.8 million, driven by increases in brokered time certificates of deposits and demand deposits [20]. Efficiency and Ratios - The efficiency ratio was 64.8%, slightly up from 64.2% in the previous quarter and 61.0% year-over-year [14]. - The leverage ratio was 18.8%, down from 20.6% in the previous quarter, but still above the well-capitalized requirement of 9.0% [22]. Non-Interest Income - Total non-interest income for the quarter was $7.8 million, an increase from $5.6 million in the prior year, driven by higher strategic program fees and other miscellaneous income [11][12]. Strategic Initiatives - The company announced a new strategic program agreement to provide lending and credit enhancement products, aiming to enhance its business model and shareholder value [4].

MURRAY, Utah, April 29, 2025 (GLOBE NEWSWIRE) -- FinWise Bancorp (NASDAQ: FINW) (“FinWise” or the “Company”), parent company of FinWise Bank (the “Bank”), today announced the launch of a new strategic lending program with leading fintech Backd Business Funding (“Backd”). Since its inception in 2019, Backd’s highly rated and experienced team has utilized an efficient and user-friendly process to support business owners with lending solutions best suited for their needs. FinWise, through its relationship with ...

Earnings Conference Call and Webcast on Wednesday, April 30, 2025MURRAY, Utah, April 03, 2025 (GLOBE NEWSWIRE) -- FinWise Bancorp (NASDAQ: FINW) (“FinWise” or the “Company”), the parent company of FinWise Bank, today announced that it will report its first quarter 2025 results and host a conference call and webcast after the market close on Wednesday, April 30, 2025. Conference Call Information The conference call will be held at 5:30 p.m. ET to discuss financial results for the first quarter of 2025. The d ...

Financial Condition and Risks - The company may recognize realized and/or unrealized losses in future periods due to adverse economic conditions, which could materially affect its financial condition and results of operations [175]. - The company relies heavily on deposits for liquidity and funding, and recent media coverage of bank failures has increased the risk of deposit run-off [180]. - Climate change poses risks to the company's operations and could lead to increased delinquency rates and credit losses due to its impact on customers' ability to repay loans [184]. - The company may incur losses on line of credit accounts if agreements with Fintech Banking and Payment Solutions customers do not adequately cover potential losses [190]. - The company’s reputation could be adversely affected by negative public opinion or regulatory actions, impacting customer acquisition and retention [178]. - Increased FDIC insurance premiums could adversely affect profitability and limit business opportunities [210]. - Regulatory actions could adversely impact the financial condition, results of operations, and reputation of the Company [200]. - Non-compliance with consumer protection laws may lead to damages, penalties, and negative publicity [212]. Regulatory Compliance and Legal Risks - Regulatory compliance costs are increasing, which may reduce net income and restrict growth opportunities for the company [192]. - The company is subject to periodic examinations by the FDIC and UDFI, which may require changes in asset valuations or capital levels, adversely affecting operations [194]. - Legislative and regulatory actions may increase costs and impact the business, governance structure, financial condition, or results of operations [195]. - Noncompliance with anti-money laundering laws could lead to significant penalties and restrictions on business operations [201]. - Regulatory scrutiny on disparate impact claims may result in administrative burdens and potential liability for failures to comply with anti-discrimination laws [208]. - Compliance with privacy and data protection laws could increase operational costs and restrict business activities [203]. - The Bank is subject to stringent capital requirements under the Dodd-Frank Act, which could affect growth initiatives and investor confidence [199]. - The regulatory framework for Strategic Programs is evolving, with potential new laws and regulations that may negatively affect business operations [218]. Strategic Programs and Revenue Generation - Approximately $54.1 million, or 55.9% of total revenues for the year ended December 31, 2024, were generated through Strategic Programs [215]. - Approximately $24.6 million, or 25.5% of total revenues for the year ended December 31, 2024, were generated from Strategic Programs with annual interest rates above 36% [221]. - The company may face increased litigation risks due to consumer claims under various state and federal laws, which could lead to significant legal costs and reputational harm [214]. - Inadequate oversight of relationships with Strategic Program service providers could lead to regulatory actions, negatively impacting business and financial condition [217]. - Fraudulent activity associated with Strategic Program service providers could harm operating results and brand reputation [226]. - The company’s agreements with service providers are non-exclusive, allowing them to work with competitors, which could impact loan origination and revenue growth [215]. Interest Rate and Market Risks - The company's economic value of equity analysis shows a potential decrease of 20.6% under a -400 bps interest rate shock scenario as of December 31, 2024 [403]. - The earnings at risk analysis indicates a potential decrease of 17.3% in net interest income under a -400 bps interest rate shock scenario as of December 31, 2024 [401]. - Fluctuations in interest rates are a primary component of market risk, impacting both income levels and market values of interest-earning assets [404]. - The company does not engage in leveraged derivatives or financial options to mitigate interest rate risk, focusing instead on balance sheet management [406]. - Management employs methodologies to manage interest rate risk, including analysis of interest-earning assets and interest-bearing liabilities [407]. Governance and Ownership - As of December 31, 2024, executive management and board of directors own approximately 21.2% of the company's common stock, potentially influencing shareholder votes [239]. - The company is classified as an emerging growth company, allowing it to take advantage of reduced regulatory and reporting requirements until it exceeds $1.235 billion in total annual gross revenue [240]. Acquisition and Strategic Collaboration Risks - The company may pursue strategic acquisitions, which could involve risks that adversely affect business strategy and shareholder value [231]. - The company faces significant competition in seeking appropriate acquisitions or strategic collaborations, which may complicate negotiations [236]. - Regulatory requirements may delay or prevent acquisitions, as any party seeking control must obtain prior written approval from relevant authorities [245].

FinWise Bancorp (FINW) has been beaten down lately with too much selling pressure. While the stock has lost 15.7% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator t ...