MURRAY, Utah, March 03, 2025 (GLOBE NEWSWIRE) -- FinWise Bancorp (NASDAQ: FINW) (“FinWise” or the “Company”), parent company of FinWise Bank (the “Bank”), today announced the appointment of Jim Noone to Chief Executive Officer (“CEO”) of the Bank, in addition to his current responsibilities as Bank President. Kent Landvatter will remain Chairman of the Board and CEO of FinWise Bancorp as well as the Executive Chairman of FinWise Bank. Mr. Noone’s ascension to CEO and President of the Bank comes after seven ...

Here is a stocks with buy rank and strong momentum characteristics for investors to consider today, February 24th:FinWise Bancorp (FINW) : This bank holding company which is a lender to and takes deposits from consumers and small businesses, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.4% over the last 60 days.FinWise Bancorp’s shares gained 6.6% over the last three month compared with the S&P 500’s gain of 0.4%. The company possesse ...

Core Viewpoint - FinWise Bancorp (FINW) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating a positive earnings outlook and potential for continued stock price appreciation [1][2]. Current-Quarter Estimate Revisions - For the current quarter, FinWise Bancorp is projected to earn $0.25 per share, unchanged from the previous year [4]. - The Zacks Consensus Estimate for the company has increased by 36.11% over the last 30 days, with two estimates moving higher and no negative revisions [4]. Current-Year Estimate Revisions - For the full year, the expected earnings per share for FinWise Bancorp is $1.03, reflecting a year-over-year increase of 10.75% [5]. - The consensus estimate has risen by 13.6% over the past month, supported by two upward revisions and no negative changes [5]. Favorable Zacks Rank - FinWise Bancorp currently holds a Zacks Rank 1 (Strong Buy), indicating strong analyst agreement on positive earnings revisions [6]. - Stocks with a Zacks Rank 1 and 2 are shown to significantly outperform the S&P 500 [6]. Bottom Line - The strong estimate revisions have led to a 10.4% increase in FinWise Bancorp's stock price over the past four weeks, suggesting further upside potential [7].

January 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, mad ...

Financial Data and Key Metrics Changes - The company generated net income of $2.8 million or $0.20 per diluted common share for Q4 2024, bringing the full year 2024 earnings per diluted common share to $0.93 [28] - Average loan balances totaled $522.2 million for the quarter, compared to $492.9 million in the prior quarter, indicating growth from SBA 7(a) commercial leases and consumer programs [29] - Net interest income for the quarter was $15.5 million, up from $14.8 million in the prior quarter, driven by increased loan volumes and lower cost of funds [31] - Noninterest income was $5.6 million in the quarter, down from $6.1 million in the prior quarter, primarily due to a decline in miscellaneous income [33] - The efficiency ratio improved to 64.2% from 67.5% in the prior quarter, reflecting a deceleration in expense growth [35] Business Line Data and Key Metrics Changes - The company originated $1.3 billion in loans during Q4, bringing total originations for fiscal year 2024 to $5 billion, a 16% increase from $4.3 billion in the prior year [14] - SBA 7(a) loan originations increased in Q4 versus Q3, driven by a gradual pickup in qualified applicants [16] - Equipment leasing and owner-occupied commercial real estate loans showed solid growth, contributing to stable interest income and credit quality [17] Market Data and Key Metrics Changes - The company remains well capitalized, significantly above federal regulatory standards, with approximately 38% of total staff employed in compliance and risk management [8][10] - The company expects a gradual progression in growth as it moves through 2025, particularly from its credit enhancement solution and BIN sponsorship initiatives [11] Company Strategy and Development Direction - The company aims to expand and diversify its revenue sources to enhance long-term growth, with a focus on new lending programs and strategic partnerships [7][9] - The introduction of new products, including credit enhancement, payments, and card programs, is expected to provide both immediate and long-term growth opportunities [11][25] - The company is committed to generating positive operating leverage and expects expense growth to be production-driven moving forward [12][36] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the outlook for the business, anticipating stability in originations from existing programs and growth from new initiatives [10][11] - The management highlighted the importance of regulatory compliance and risk management as key components of their strategy to gain market share [9][10] - The company expects to see a gradual impact from new initiatives throughout 2025, with credit enhancement products expected to contribute significantly [87] Other Important Information - The company reported a provision for credit losses of $3.9 million in Q4, up from $2.2 million in Q3, primarily due to net charge-offs on non-guaranteed portions of SBA loans [19] - Nonperforming loan balances totaled $36.4 million, an increase from $30.6 million in the prior quarter, with 53% of the NPL balance guaranteed by the federal government [21][77] Q&A Session Summary Question: What drove the end-of-period loan growth in the quarter? - The increase was attributed to minimal growth in SBA loans and notable growth in leasing and owner-occupied commercial real estate portfolios, reflecting strong credit quality [41] Question: Is the 24% growth in the held-for-investment portfolio repeatable? - The company expressed confidence in continued growth rates, with expectations for a mix shift as credit-enhanced products gain traction [44][46] Question: What kept strategic program fees flat despite lower originations? - The flat fees were attributed to diversification among partners, which helped stabilize income despite seasonal deceleration in originations [48][49] Question: What is the expected growth from new card and payments initiatives in the next few years? - The company anticipates substantial growth in credit-enhanced balances in 2025, with expectations of $50 million to $100 million increase by year-end [54] Question: What are the criteria for selecting new partners? - The company focuses on mature, established fintechs for partnerships, which enhances the quality of the pipeline [56] Question: What are the main concerns for the company currently? - Key concerns include cybersecurity, regulatory issues, and ensuring proper oversight of fintech partners [59] Question: What is the expected impact of the credit enhancement product on financial performance? - The product is expected to provide stable interest income while minimizing credit risk, benefiting both the bank and its fintech partners [96]

Core Insights - FinWise Bancorp reported revenue of $21.13 million for the quarter ended December 2024, reflecting a year-over-year increase of 3.6% [1] - The company's EPS was $0.20, down from $0.32 in the same quarter last year, with no EPS surprise as the consensus estimate was also $0.20 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $20.69 million by 2.14% [1] Financial Performance Metrics - Efficiency ratio was 64.2%, better than the estimated 69.1% by analysts [4] - Net charge-offs to average loans stood at 2.8%, slightly above the average estimate of 2.5% [4] - Non-Performing Loans totaled $36.43 million, lower than the estimated $40.47 million [4] - Net interest margin was reported at 10%, exceeding the average estimate of 9.7% [4] - Total Interest Earning Assets amounted to $617.74 million, below the average estimate of $624.87 million [4] - Total Non-Interest Income was $5.60 million, slightly above the average estimate of $5.50 million [4] - Net interest income reached $15.53 million, surpassing the average estimate of $15.20 million [4] Stock Performance - FinWise Bancorp shares returned +1.6% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Core Viewpoint - FinWise Bancorp reported quarterly earnings of $0.20 per share, matching the Zacks Consensus Estimate, but down from $0.32 per share a year ago [1] - The company posted revenues of $21.13 million for the quarter, exceeding the Zacks Consensus Estimate by 2.14% and up from $20.4 million year-over-year [2] Earnings Performance - The company has surpassed consensus EPS estimates three times over the last four quarters [1] - FinWise Bancorp's shares have increased approximately 1.6% since the beginning of the year, compared to a 2.7% gain for the S&P 500 [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $20.78 million, and for the current fiscal year, it is $0.90 on revenues of $89.63 million [7] - The estimate revisions trend for FinWise Bancorp is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Banks - Southwest industry, to which FinWise Bancorp belongs, is currently in the top 4% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Net income for 2024 was $12.7 million, including $2.8 million for the fourth quarter[1] - Diluted earnings per share (EPS) were $0.93 for 2024, with $0.20 for the fourth quarter[1] - Net income for the three months ended December 31, 2024, was $2,793,000, down from $3,454,000 in the previous quarter, a decrease of 19.1%[41] - Net income decreased to $12,742 thousand in 2024, down from $17,460 thousand in 2023, a decline of 27.0%[44] - Basic earnings per share fell to $0.98 in 2024 from $1.38 in 2023, a decrease of 29.0%[44] Loan Originations and Assets - Loan originations totaled $5.0 billion for the full year 2024, with $1.3 billion in the fourth quarter[1] - Total assets increased to $746.0 million as of December 31, 2024, up from $683.0 million as of September 30, 2024[15] - Total assets increased to $745,976,000 as of December 31, 2024, up from $683,031,000 on September 30, 2024, representing a 9.4% growth[39] - The total outstanding balance of loans held for investment with credit enhancement as of December 31, 2024, was approximately $0.9 million[59] Interest Income and Expenses - Total interest income increased to $74,352 thousand in 2024 from $64,534 thousand in 2023, representing a growth of 15.5%[44] - Net interest income after provision for credit losses rose to $47,339 thousand in 2024, up from $42,921 thousand in 2023, an increase of 10.6%[44] - Interest income from loans increased to $18,388,000 for the three months ended December 31, 2024, compared to $17,590,000 in the prior quarter, a rise of 4.5%[41] - Net interest income and net interest margin, after adjusting for credit enhancement expenses, are considered non-GAAP measures that provide insight into the company's financial performance[56] Non-Interest Income and Expenses - Non-interest income totaled $22,485 thousand in 2024, compared to $21,456 thousand in 2023, reflecting a growth of 4.8%[44] - Non-interest income totaled $5,603,000 for the three months ended December 31, 2024, down from $6,054,000 in the previous quarter, a decline of 7.4%[41] - The total non-interest income for the three months ended December 31, 2024, was $5,603 thousand, with credit enhancement income of $25 thousand deducted, resulting in a total non-interest income of $5,578 thousand[58] Credit Losses and Nonperforming Loans - The provision for credit losses was $3.9 million for the fourth quarter, compared to $2.2 million in the prior quarter[9] - Nonperforming loan balances rose to $36.4 million as of December 31, 2024, compared to $30.6 million as of September 30, 2024[3] - Nonperforming loans totaled $36.4 million, or 7.8% of total loans HFI, as of December 31, 2024, compared to $30.6 million (7.1%) on September 30, 2024, and $27.1 million (7.3%) on December 31, 2023[23] - The allowance for credit losses to total loans HFI was 2.8% as of December 31, 2024, down from 2.9% at September 30, 2024, and 3.5% at December 31, 2023, reflecting a shift towards lower risk loan portfolios[24] Capital and Equity - Total shareholders' equity increased by $3.4 million to $173.7 million from $170.4 million at September 30, 2024, and by $18.7 million from $155.1 million at December 31, 2023, mainly due to net income and additional capital issued[20] - The leverage ratio as of December 31, 2024, was 20.6%, up from 20.3% at September 30, 2024, and slightly down from 20.7% at December 31, 2023, remaining significantly above the well-capitalized requirement of 9.0%[21] Efficiency and Management - The efficiency ratio improved to 64.2% in the fourth quarter, down from 67.5% in the prior quarter[12] - The net interest margin for 2024 was reported at 10.00%, compared to 11.65% in 2023, showing a decline in profitability from interest-earning assets[48] Strategic Initiatives - The company announced four new lending programs, including two related to credit enhancement, as part of its strategy for growth[3] - The company is expanding its business model by incorporating Payments (MoneyRails) and BIN Sponsorship offerings, alongside its Strategic Program Lending business[31] - The company plans to host a conference call to discuss its financial results for the fourth quarter and year ended December 31, 2024[28] Share Repurchase - The company has repurchased a total of 44,608 shares for $0.5 million since the inception of its share repurchase program in March 2024, with no shares repurchased during the fourth quarter of 2024[22]

Core Insights - FinWise Bancorp reported loan originations of $5.0 billion for 2024, with $1.3 billion in the fourth quarter [1] - The company achieved a net income of $12.7 million for 2024, including $2.8 million for the fourth quarter [1] - Diluted earnings per share (EPS) were $0.93 for 2024, with $0.20 for the fourth quarter [1] Financial Performance - Loan originations for Q4 2024 totaled $1.3 billion, a decrease from $1.4 billion in Q3 2024 and an increase from $1.2 billion in Q4 2023 [5][9] - Net interest income for Q4 2024 was $15.5 million, up from $14.8 million in Q3 2024 and $14.4 million in Q4 2023 [5][8] - The efficiency ratio improved to 64.2% in Q4 2024 from 67.5% in Q3 2024, but was higher than 56.0% in Q4 2023 [5][15] Asset Quality - Nonperforming loans increased to $36.4 million, or 7.8% of total loans held for investment (HFI), compared to $30.6 million (7.1%) in Q3 2024 and $27.1 million (7.3%) in Q4 2023 [27][28] - The allowance for credit losses to total loans HFI was 2.8% as of December 31, 2024, down from 2.9% in Q3 2024 and 3.5% in Q4 2023 [28][31] Balance Sheet Highlights - Total assets increased to $746.0 million as of December 31, 2024, up from $683.0 million in Q3 2024 and $586.2 million in Q4 2023 [18] - Total deposits rose to $544.9 million as of December 31, 2024, compared to $488.7 million in Q3 2024 and $404.8 million in Q4 2023 [22][23] Strategic Initiatives - The company announced four new lending programs, including credit enhancement, payments, and credit card offerings, aimed at diversifying revenue sources [3] - FinWise is focused on generating positive operating leverage and anticipates continued stability in loan originations from existing programs [3]

Core Insights - FinWise Bancorp (FINW) is positioned to continue its earnings-beat streak, having a strong track record of exceeding earnings estimates, particularly in the last two quarters with an average surprise of 33.09% [1][3] Earnings Performance - In the most recent quarter, FinWise Bancorp reported earnings of $0.25 per share, surpassing the expected $0.20 per share, resulting in a surprise of 25% [2] - For the previous quarter, the company reported $0.24 per share against an expectation of $0.17 per share, achieving a surprise of 41.18% [2] Earnings Estimates and Predictions - Recent estimates for FinWise Bancorp have been revised upwards, with a positive Earnings ESP of +15%, indicating increased analyst optimism regarding its near-term earnings potential [3][6] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data showing that stocks with this combination beat estimates nearly 70% of the time [4][6] Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which are often more accurate [5] - It is crucial for investors to check a company's Earnings ESP prior to earnings releases to enhance the probability of successful predictions [8]