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FinWise Bancorp to Host Second Quarter 2025 Earnings Conference Call and Webcast on Thursday, July 24, 2025
Globenewswire· 2025-07-01 11:30
MURRAY, Utah, July 01, 2025 (GLOBE NEWSWIRE) -- FinWise Bancorp (NASDAQ: FINW) (“FinWise” or the “Company”), the parent company of FinWise Bank, today announced that it will report its second quarter 2025 results and host a conference call and webcast after the market close on Thursday, July 24, 2025. Conference Call Information The conference call will be held at 5:00 p.m. ET to discuss financial results for the second quarter of 2025. The dial-in number is 1-877-423-9813 (toll-free) or 1-201-689-8573 (int ...
FinWise Bancorp (FINW) Earnings Call Presentation
2025-06-17 05:50
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 ...
FinWise Bancorp Added to Membership of US Small-Cap Russell 2000® Index
Globenewswire· 2025-05-27 11:30
Group 1 - FinWise Bancorp has been added as a member of the US small-cap Russell 2000 Index, effective June 30, 2025, as part of the 2025 Russell indexes reconstitution [1][2] - Membership in the Russell 2000 Index is based on inclusion in the broader Russell 3000 Index and will remain for one year [1] - The stock was also added to the relevant growth and value indexes automatically [1] Group 2 - The Chairman and CEO of FinWise expressed pride in the addition to the Russell 2000 Index, highlighting its significance as a performance benchmark for U.S. small-cap companies [2] - Approximately $10.6 trillion in assets are benchmarked against the Russell US indexes, indicating the importance of these indexes in the investment community [2] Group 3 - FinWise provides Banking and Payments solutions to fintech brands, focusing on scalable API-driven infrastructure for deposit, lending, and payments programs [4] - The company is expanding its business model by incorporating Payments (MoneyRails ™) and BIN Sponsorship offerings, alongside its existing lending programs [4]
FinWise Bancorp(FINW) - 2025 Q1 - Quarterly Report
2025-05-13 20:10
Financial Performance - Net income for the three months ended March 31, 2025, was $3.2 million, a decrease of 3.8% compared to $3.3 million in the same period of 2024[150]. - Interest income increased by 5.0% to $18.5 million for the three months ended March 31, 2025, compared to $17.6 million in 2024[150]. - Non-interest income rose significantly by 37.9% to $7.8 million in Q1 2025, up from $5.7 million in Q1 2024[150]. - Net interest margin (NIM) decreased to 8.27% for Q1 2025 from 10.12% in Q1 2024, primarily due to the repricing of variable rate loans[152]. - The effective income tax rate for the three months ended March 31, 2025, was 28.1%, compared to 26.5% in the same period of 2024[161]. - Return on average equity was 7.4% for the three months ended March 31, 2025, down from 8.4% for the same period in 2024[225]. Asset and Liability Management - Total assets increased by $58.2 million to $804.1 million as of March 31, 2025, compared to December 31, 2024[154]. - Total liabilities rose to $626.8 million, a 9.5% increase from $572.3 million as of December 31, 2024, mainly due to the increase in deposits[215]. - Total deposits increased to $605.8 million as of March 31, 2025, up from $545.0 million as of December 31, 2024, primarily driven by a $53.0 million increase in brokered time deposits[213]. - Liquid assets totaled $120.3 million, constituting 15.0% of total assets as of March 31, 2025, providing adequate liquidity for at least the next 12 months[222]. - The company maintains a leverage ratio greater than 9.0% to be considered well-capitalized under the Community Bank Leverage Ratio framework[227]. Loan Portfolio - Loan originations increased to $1.3 billion in Q1 2025 from $1.1 billion in Q1 2024, driven by new Strategic Programs and organic growth[154]. - Loans held-for-investment increased to $492,223,000 as of March 31, 2025, up from $465,233,000 as of December 31, 2024[173]. - SBA loans represented 50.0% of total loans held-for-investment as of March 31, 2025, totaling $246,004,000, down from 54.8% in the previous year[175]. - Total residential real estate loans increased to $55.8 million as of March 31, 2025, accounting for 11.3% of total loans held-for-investment[179]. - Total consumer loans reached $22.8 million as of March 31, 2025, representing 4.6% of total loans held-for-investment[183]. Credit Quality and Losses - The provision for credit losses increased to $3.3 million in Q1 2025, up 5.8% from $3.2 million in Q1 2024, attributed to growth in the loans held-for-investment portfolio[150][157]. - Nonperforming assets totaled $29.9 million as of March 31, 2025, down from $36.5 million at December 31, 2024[188]. - The decrease in nonperforming assets was primarily due to the resolution of two loans, despite some smaller loans migrating to nonperforming status[188]. - The allowance for credit losses (ACL) as of March 31, 2025, was $14.235 million, an increase from $13.176 million at December 31, 2024, with Strategic Program loans constituting 43.3% of the total ACL[205]. - Net charge-offs (NCO) for the three months ended March 31, 2025, totaled $2.248 million, with an annualized NCO to average loans ratio of 1.9%[210]. Non-Interest Expenses - Non-interest expense rose by 19.3% to $14.3 million in Q1 2025, compared to $12.0 million in Q1 2024[150]. - Total non-interest expense rose to $14,318,000, a 19.3% increase from $12,005,000 in the prior year[160]. - Salaries and employee benefits increased by $2,264,000, or 29.9%, from $7,562,000 in 2024 to $9,826,000 in 2025[160]. Strategic Initiatives - The company continues to focus on expanding its product offerings and supporting business infrastructure to drive future growth[154]. - The company emphasizes proactive identification and resolution of problem loans to maintain asset quality[190]. - The company manages interest rate risk through its Asset/Liability Management Committee (ALCO), which regularly reviews sensitivity to interest rate changes[247]. - The company does not engage in leveraged derivatives or financial options to mitigate interest rate risk, focusing instead on balance sheet structuring[246].
Compared to Estimates, FinWise Bancorp (FINW) Q1 Earnings: A Look at Key Metrics
ZACKS· 2025-05-01 00:05
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) Q1 Earnings and Revenues Lag Estimates
ZACKS· 2025-04-30 23:30
Company Performance - FinWise Bancorp reported quarterly earnings of $0.23 per share, missing the Zacks Consensus Estimate of $0.25 per share, and down from $0.25 per share a year ago, representing an earnings surprise of -8% [1] - The company posted revenues of $22.09 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 2.21%, compared to year-ago revenues of $19.47 million [2] - Over the last four quarters, FinWise Bancorp has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.23 on revenues of $23.88 million, and for the current fiscal year, it is $1.12 on revenues of $101.19 million [7] - The estimate revisions trend for FinWise Bancorp is currently favorable, leading to a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [3] Industry Context - The Banks - Southwest industry, to which FinWise Bancorp belongs, is currently in the top 5% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]
FinWise Bancorp(FINW) - 2025 Q1 - Earnings Call Presentation
2025-04-30 22:45
Business Model & Strategy - FinWise operates a resilient and profitable business model focused on providing banking and payment solutions to fintechs[10] - The company emphasizes a compliance-first and risk management-focused culture[10] - A key strategy involves Strategic Program Lending (SPL) with credit enhancement features to generate lower-risk asset growth and interest income[10] - FinWise aims to diversify its revenue streams by incorporating credit-enhanced products, payments solutions (MoneyRails™), and BIN sponsorship[21] Financial Performance & Portfolio - As of 1Q25, 44% of the loan portfolio consists of SBA Guaranteed loans and Strategic Program Held For Sale (HFS) loans, which are considered lower risk[10, 43] - Strategic Platform Loans on the balance sheet totaled $1387 million as of March 31, 2025, with 856% classified as HFS and 144% as Held For Investment (HFI)[16] - The company's allowance for credit losses (ACL) to total gross loans HFI stood at 29% at the end of 1Q25, reflecting a lower-risk portfolio[40] Operational Efficiency & Capitalization - At the end of 1Q25, 72 out of 196 FTEs (37%) are dedicated to IT, Compliance, Risk Management, and BSA functions[13] - The efficiency ratio for 1Q25 was 648%, compared to 610% in 1Q24[50] - The bank's capital levels remain significantly above the regulatory requirement of 9%[82]
FinWise Bancorp(FINW) - 2025 Q1 - Earnings Call Transcript
2025-04-30 22:32
Financial Data and Key Metrics Changes - The company reported net income of $3,200,000 or $0.23 per diluted common share for Q1 2025, with a decrease in net interest income to $14,300,000 from $15,500,000 in the prior quarter [12][14] - The net interest margin (NIM) declined 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 [14][15] - Average loan balances increased to $565,000,000 from $522,000,000 in the prior quarter, driven by growth in SBA loans and consumer programs [12][13] Business Line Data and Key Metrics Changes - Loan originations totaled approximately $1,300,000,000 in Q1 2025, with a strong performance from the student lending program, although a seasonal softening in demand was noted [4][8] - The provision for credit losses decreased to $3,300,000 from $3,900,000 in the prior quarter, reflecting lower charge-offs [10] - Non-performing assets (NPAs) decreased to $29,900,000 from $36,500,000 in the prior quarter, attributed to effective collection efforts [11] Market Data and Key Metrics Changes - The company remains well-capitalized with a tangible shareholders' equity to assets ratio of 22%, down from 23.3% at year-end 2024 [5] - Average interest-bearing deposits increased to $430,000,000 from $355,000,000 in the prior quarter, driven by an increase in interest-bearing demand deposits [13] Company Strategy and Development Direction - The company is focused on executing its business strategy, including a new strategic program agreement with Fintech partner BACT to provide business installment loans [5][6] - The long-term outlook remains positive, with expectations for gradual growth driven by existing and new programs [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for originations for the year, despite some seasonal fluctuations [8][9] - Concerns were raised about potential macroeconomic risks, particularly a slowdown in consumer spending, but no immediate issues were identified with strategic partners [39] Other Important Information - The effective tax rate for Q1 was 28.1%, up from 24.3% in the prior quarter, primarily due to permanent differences related to executive compensation [17] - The company expects credit enhanced balances to increase by $50,000,000 to $100,000,000 by year-end 2025 [17][18] Q&A Session Summary Question: What is the current expense run rate and expectations for future expenses? - The efficiency ratio is currently at 64.8%, and expenses are expected to remain relatively flat as revenues increase [21][22] Question: What is the outlook for net interest income (NII) growth? - NII is expected to grow from seasonal recovery in originations and increased loan portfolio growth, despite a decline in NIM [24][26] Question: What are the current credit enhanced loan balances? - The credit enhanced portfolio balance was slightly under $2,000,000 at the end of the quarter, with expectations to reach $50,000,000 to $100,000,000 by year-end [33][34] Question: How does the company view the health of its strategic partners? - Management is comfortable with origination levels and does not have concerns about specific partners at this time [38] Question: What is the yield on owner-occupied commercial real estate loans? - The gross yield on owner-occupied commercial real estate is likely around prime minus 100 basis points [65]
FinWise Bancorp(FINW) - 2025 Q1 - Earnings Call Transcript
2025-04-30 22:32
Financial Data and Key Metrics Changes - The company reported net income of $3,200,000 or $0.23 per diluted common share for Q1 2025, with a decrease in net interest income to $14,300,000 from $15,500,000 in the prior quarter [12][14] - The net interest margin (NIM) declined 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 [14][15] - Average loan balances increased to $565,000,000 from $522,000,000 in the prior quarter, driven by growth in SBA loans and consumer programs [12][13] Business Line Data and Key Metrics Changes - Loan originations totaled approximately $1,300,000,000 in Q1 2025, with a strong contribution from strategic programs initiated in 2024 [4][8] - The company experienced a seasonal softening in demand from higher yielding partners in the second half of the quarter, which is consistent with historical trends [8] - The provision for credit losses decreased to $3,300,000 from $3,900,000 in the prior quarter, reflecting lower charge-offs [10] Market Data and Key Metrics Changes - The company’s tangible shareholders' equity to assets ratio was 22%, down from 23.3% at year-end 2024, indicating a planned growth in assets [5] - The company expects to see a gradual progression and growth throughout 2025, driven by originations from existing programs and new partnerships [6][7] Company Strategy and Development Direction - The company announced a new strategic program agreement with Fintech partner BACT, focusing on providing business installment loans to small and medium-sized businesses [5] - The company aims to continue migrating its loan portfolio to a lower risk profile while maintaining profitability and increasing tangible book value [4][6] - The management remains optimistic about long-term growth, particularly as strategic partners express enthusiasm for the company's banking and payments platform [6] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain macroeconomic environment but expressed confidence in the long-term outlook for the business [6] - The company anticipates that credit enhanced balance sheet programs will significantly contribute to earnings in 2025, particularly in the second half of the year [7] - Management is closely monitoring economic conditions, particularly consumer spending, which could impact lending demand [38] Other Important Information - The effective tax rate for Q1 was 28.1%, up from 24.3% in the prior quarter, primarily due to permanent differences related to executive compensation [17] - The company is comfortable with the outlook for credit enhanced balances to increase by $50,000,000 to $100,000,000 by year-end 2025 [17] Q&A Session Summary Question: What is the current expense run rate and expectations for future expenses? - The company reported an efficiency ratio of 64.8%, with expectations for expenses to remain relatively flat as revenues increase [21][22] Question: What is the outlook for net interest income (NII) growth? - The company expects NII growth to come from a return to normal origination levels and an increase in the loan portfolio, despite a decline in NIM [24][25] Question: What are the current credit enhanced loan balances and growth expectations? - The credit enhanced portfolio balance was slightly under $2,000,000 at the end of the quarter, with expectations to reach $50,000,000 to $100,000,000 by year-end 2025 [31][32] Question: How does the company view the health of its strategic partners? - Management expressed no current concerns about strategic partners, noting healthy origination levels and a gradual pickup from newer partners throughout 2025 [38] 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]
FinWise Bancorp(FINW) - 2025 Q1 - Earnings Call Transcript
2025-04-30 21:30
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]