Financial Performance - For the three months ended September 30, 2025, loan originations increased to $1.8 billion, up from $1.4 billion in the same period of 2024, representing a 28.6% increase[169] - Net income for the three months ended September 30, 2025, was $4.9 million, a 41.6% increase compared to $3.5 million in the same period of 2024[170] - Interest income for the three months ended September 30, 2025, was $23.966 million, a 26.6% increase from $18.924 million in the same period of 2024[170] - Non-interest income surged to $18.052 million for the three months ended September 30, 2025, up 198.2% from $6.054 million in the same period of 2024[170] - Net interest income for the nine months ended September 30, 2025, was $47,614 thousand, compared to $43,384 thousand in 2024, representing an increase of 5.3%[176] - Net income for the nine months ended September 30, 2025, was $12.2 million, compared to $10.0 million in the same period of 2024[185] Asset and Liability Management - Total assets increased by $154.0 million to $899.9 million as of September 30, 2025, compared to December 31, 2024[169] - Total assets grew by $154.0 million, or 20.6%, to $899.9 million as of September 30, 2025, from $746.0 million at December 31, 2024[192] - Total liabilities rose to $712.2 million, a 24.4% increase from $572.3 million as of December 31, 2024, mainly due to the increase in deposits[245] - Shareholders' equity increased by $14.0 million to $187.8 million at September 30, 2025, compared to $173.7 million at December 31, 2024, primarily due to earnings of $12.2 million reported for the period[253] - Liquid assets totaled $105.6 million, constituting 11.7% of total assets as of September 30, 2025, providing adequate liquidity for at least the next 12 months[251] Loan Portfolio and Credit Quality - Loans held for investment generated interest income of $42,052 thousand in 2025, with a yield of 10.85%, compared to $37,847 thousand and 12.61% in 2024[176] - As of September 30, 2025, total loans held-for-investment amounted to $567.8 million, an increase from $465.2 million as of December 31, 2024, representing a growth of 22.1%[202] - The company reported a total of $567.8 million in loans held-for-investment, with fixed rate loans totaling $209.7 million and variable rate loans totaling $358.1 million[213] - The total amount of fixed rate loans maturing in one year or less is $162.7 million, while those maturing after five years total $214.5 million[213] - The company has established underwriting guidelines and monitors delinquency levels to maintain the quality of its loan portfolio[216] - The allowance for credit losses (ACL) reached $25,778 thousand as of September 30, 2025, compared to $13,176 thousand as of December 31, 2024, reflecting increased credit risks associated with Strategic Program loans[235] Credit Losses and Provisions - Provision for credit losses increased significantly to $12.799 million for the three months ended September 30, 2025, compared to $2.157 million in the same period of 2024, marking a 493.4% increase[170] - The provision for credit losses for the nine months ended September 30, 2025, was $20,761 thousand, significantly higher than $7,482 thousand for the same period in 2024[233] - Net charge-offs (NCO) for the three months ended September 30, 2025, totaled $3,127 thousand, with an annualized NCO to average loans ratio of 2.3%[237] - The ratio of ACL to total loans held-for-investment increased to 4.5% as of September 30, 2025, compared to 2.8% as of December 31, 2024[236] Deposits and Funding - Total deposits reached $482,990 thousand in 2025, up from $331,950 thousand in 2024, reflecting a growth of 45.5%[176] - Total deposits increased by $137.4 million, reaching $682.3 million as of September 30, 2025, compared to $544.9 million at December 31, 2024, driven primarily by brokered time deposits[243] - The Bank's total estimated uninsured deposits were $182.0 million as of September 30, 2025, slightly down from $183.2 million at December 31, 2024[244] Strategic Initiatives and Future Outlook - The company revised its reportable segments to three: traditional banking, banking as a service (BaaS), and treasury and administration, reflecting operational growth[167] - The BaaS segment reported strong performance, contributing significantly to overall growth, while traditional banking provided a stable foundation[190] - Looking ahead, the company expects continued growth in the BaaS segment as it expands fintech partnerships and product offerings[191] Interest Rate Sensitivity - The economic value of equity analysis indicated a decrease of 20.9% under a -400 bps interest rate shock scenario as of September 30, 2025[271] - The company’s asset/liability management strategy allows for adjustments to asset and liability durations to manage interest rate sensitivity[269] - The ALCO regularly reviews the sensitivity of assets and liabilities to interest rate changes and other financial metrics[275]

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Financial Data and Key Metrics Changes - The company reported net income of $4.9 million for Q3 2025, a 19% increase from $4.1 million in the prior quarter and a 42% increase year over year [16] - Diluted earnings per share rose to $0.34, up from $0.29 in the previous quarter and $0.25 in the same quarter last year [16] - Total end-of-period assets reached nearly $900 million for the first time in the company's history, reflecting robust balance sheet expansion [18] Business Line Data and Key Metrics Changes - Loan originations totaled $1.8 billion, a 21% increase quarter over quarter and a 24% increase year over year [8] - Credit-enhanced balances reached $41 million at the end of Q3 2025, with projections of approximately $115 million by the end of Q4 2025 [9][10] - Quarterly SBA 7(a) loan originations declined 7.8% quarter over quarter but increased 68% year over year [10] Market Data and Key Metrics Changes - Average loan balances totaled $683 million for the quarter, compared to $634 million in the prior quarter [18] - Average interest-bearing deposits increased to $524 million from $494 million in the prior quarter [18] - Net interest margin increased to 9.01% compared to 7.81% in the prior quarter [19] Company Strategy and Development Direction - The company is focused on disciplined growth and operational excellence as key drivers of sustained progress and meaningful returns for shareholders [7] - Strategic partnerships with DreamFi and Tally Technologies are expected to enhance product offerings and support growth in credit-enhanced portfolios [4][5] - The company is evaluating a measured increase in higher-yielding loans while maintaining internal limits established in 2018 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong momentum across the business, despite potential macroeconomic shifts [8] - The recent federal government shutdown may impact SBA lending operations, particularly loan approvals and closings [10][11] - The company anticipates a gradual moderation in non-performing loan (NPL) migration, with expectations of approximately $10 to $12 million in watchlist loans migrating to NPL in Q4 [15] Other Important Information - The total provision for credit losses was $12.8 million in Q3, compared to $4.7 million in the prior quarter [12] - Non-interest income for the quarter was $18.1 million, driven by a substantial increase in strategic program fees and higher gains on loan sales [22] - The efficiency ratio improved to 47.6% from 59.5% in the prior quarter, reflecting strong revenue growth and disciplined expense management [23] Q&A Session Summary Question: Can you discuss the level of concentration you're comfortable with for credit-enhanced loans in your portfolio? - The concentration policies limit each program to about 15% of the portfolio [26] Question: Can you elaborate on the net reductions in FTEs in compliance and risk functions? - The reduction is due to disciplined management rather than automation; the company is analyzing potential efficiency impacts from AI [28] Question: What is the difference between credit enhancement program expenses and credit enhancement guaranteed expenses? - Credit enhancement expenses refer to guarantees, while servicing costs related to those loans are included but not specified [29] Question: Can you quantify the impact of accrued interest reversals in the quarter? - The accrued interest reversal was about $175,000 this quarter compared to $514,000 last quarter [31] Question: Should we expect the entirety of loan growth to come from credit-enhanced products? - Growth will primarily come from credit-enhanced products, but there will also be growth in other areas like SBA and equipment leasing [33] Question: What could cause deviations from the established baseline for credit-enhanced growth in 2026? - Positive deviations could come from improved performance in existing programs, while negative deviations could arise from material weaknesses in performance [36] Question: Can you break apart the decision on credit-enhanced and non-guaranteed loans? - The company has both credit enhancement programs and full risk retention programs, with the latter capturing all yield and credit risk [44] Question: How much margin decrease is expected in Q4? - The margin could fluctuate due to the new partnership with Tally Technologies, which has a different revenue structure [49]

FINWISE BANCORP REPORTS THIRD QUARTER 2025 RESULTS - Loan Originations of $1.8 Billion - - Net Income of $4.9 Million - - Diluted Earnings Per Share of $0.34 - MURRAY, UTAH — October 29, 2025 (GLOBE NEWSWIRE) — FinWise Bancorp (NASDAQ: FINW) ("FinWise", the "Company", "we", "our", or "us"), parent company of FinWise Bank (the "Bank"), today announced results for the quarter ended September 30, 2025. Exhibit 99.1 Third Quarter 2025 Highlights "Our strong third quarter results reflect the positive impact of t ...

Core Insights - FinWise Bancorp reported strong financial results for the third quarter of 2025, with net income of $4.9 million, a 19% increase from the previous quarter and a 42% increase year-over-year, driven by robust loan originations and disciplined expense management [4][20]. Financial Performance - Loan originations totaled $1.8 billion, up from $1.5 billion in the prior quarter and $1.4 billion year-over-year [6][10]. - Net interest income was $18.6 million, compared to $14.7 million in the previous quarter and $14.8 million in the same quarter last year [9][6]. - Diluted earnings per share (EPS) were $0.34, an increase from $0.29 in the prior quarter and $0.25 year-over-year [6][20]. - The efficiency ratio improved to 47.6%, down from 59.5% in the previous quarter and 67.5% year-over-year, indicating better productivity [18][6]. Asset Quality - Nonperforming loans were recorded at $42.8 million, representing 7.5% of total loans held-for-investment, compared to $39.7 million (7.5%) in the previous quarter and $30.6 million (7.1%) year-over-year [30][31]. - The allowance for credit losses increased to $25.8 million, reflecting a higher provision for credit losses due to growth in the credit-enhanced loan portfolio [32][30]. Balance Sheet Highlights - Total assets reached $899.9 million, up from $842.5 million in the previous quarter and $683.0 million year-over-year [21][22]. - Total deposits increased to $682.3 million, driven by growth in brokered time certificates of deposits [26][25]. - Total shareholders' equity rose to $187.8 million, an increase of $5.8 million from the previous quarter and $17.4 million year-over-year [27][44]. Strategic Initiatives - The company announced two strategic program agreements with DreamFi Inc. and Tallied Technologies, aiming to expand its strategic initiatives [4]. - FinWise continues to focus on disciplined growth and operational excellence to drive long-term progress and sustainable value creation for shareholders [4].

October 2025 Disclaimers "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995 This presentation may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company's current views with respect to, among other things, the Company's strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and resul ...

Core Insights - FinWise Bancorp has entered into a partnership with Tallied Technologies to deliver credit card products and processing solutions to fintechs and their customers [1][2][4] - The partnership will launch two Mastercard co-branded credit card programs in November 2025, focusing on consumer and business rewards [2][3] - Tallied will manage various aspects of the card programs, while FinWise will act as the issuing bank, providing compliance and risk management oversight [3][4] Company Overview - FinWise Bancorp provides banking and payment solutions to fintech brands, leveraging a scalable API-driven infrastructure for deposit, lending, and payment programs [6] - The company is expanding its business model to include payments and BIN sponsorship offerings, while maintaining a strong focus on compliance and risk management [6] Partnership Details - The collaboration aims to enhance Tallied's growth in credit card programs and diversify FinWise's revenue through interest and fee-related income [4] - Tallied's platform supports the entire credit card value chain, emphasizing operational efficiency and fraud control [5]

Core Insights - FinWise Bancorp has entered a strategic program agreement with DreamFi, a fintech company focused on serving underserved communities through financial wellness initiatives [1][2] - The partnership aims to provide essential financial products and services, including a DreamFi Debit Card, checking accounts, and access to over 40,000 surcharge-free ATMs in the U.S. [2] - Both companies emphasize their commitment to improving financial access and literacy, aligning their missions to empower individuals and families [3][4] Company Overview - FinWise Bancorp provides banking and payments solutions to fintech brands, with a focus on scalable API-driven infrastructure for deposit, lending, and payments programs [5] - The company is expanding its business model to include Payments (MoneyRails™) and BIN Sponsorship offerings, enhancing its ability to support fintechs in regulatory compliance [5] DreamFi Overview - DreamFi, co-founded by civil rights attorney Ben Crump, aims to transform financial access and empower users to build financial stability and generational wealth [4] - The company plans to leverage mobile banking and financial literacy tools to help users take control of their financial futures [4]

Core Viewpoint - FinWise Bancorp will report its third quarter 2025 financial results and host a conference call on October 29, 2025 [1] Conference Call Information - The conference call is scheduled for 5:00 p.m. ET on October 29, 2025, with a toll-free dial-in number of 1-877-423-9813 and an international number of 1-201-689-8573 [2] - Participants are advised to dial in 10 minutes prior to the start time [2] Webcast Information - The webcast will be available on the Company's website and a replay will be accessible for six months following the call [3] Submission of Conference Call Questions - The Company will accept questions submitted via email prior to the call, in addition to live questions from analysts [4] About FinWise Bancorp - FinWise provides Banking and Payments solutions to fintech brands, with a focus on Strategic Program Lending through API-driven infrastructure [5] - The Company offers a Credit Enhanced Balance Sheet Program to help diversify funding sources and manage capital efficiency [5] - FinWise also manages various Lending programs, including SBA 7(a), Owner Occupied Commercial Real Estate, and Leasing, while expanding its business model with Payments and BIN Sponsorship offerings [5] - The Company emphasizes compliance oversight and risk management to assist fintechs in regulatory compliance [5]

Company Overview - FinWise Bancorp (FINW) shares increased by 9% in the last trading session, closing at $22.49, with notable trading volume compared to typical sessions [1] - The stock has gained 11.7% over the past four weeks [1] Index Inclusion - FinWise is now included in the S&P Global BMI Index, which is expected to enhance the company's visibility among institutional and global investors, leading to increased liquidity and shareholder engagement [2] Earnings Expectations - The company is projected to report quarterly earnings of $0.30 per share, reflecting a year-over-year increase of 20% [2] - Expected revenues for the upcoming report are $30.2 million, representing a 45.1% increase from the same quarter last year [2] Earnings Estimate Trends - The consensus EPS estimate for FinWise has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - The stock currently holds a Zacks Rank of 2 (Buy), suggesting positive sentiment in the market [4] Industry Context - FinWise Bancorp is part of the Zacks Banks - Southwest industry, where Cullen/Frost Bankers (CFR) is another player, having closed 1.2% lower at $127.17 in the last trading session [4] - Cullen/Frost's consensus EPS estimate has changed by +0.1% over the past month to $2.35, which is a 4.9% increase compared to the previous year [5]