Group 1: Stock Performance and Price Targets - FinWise Bancorp (FINW) closed at $17.99, with a 0.5% gain over the past four weeks, and a mean price target of $22.67 suggests a 26% upside potential [1] - The average price target ranges from a low of $21.00 to a high of $24.00, indicating a potential increase of 16.7% to 33.4% from the current price level, with a standard deviation of $1.53 reflecting the variability of estimates [2] - Analysts have shown strong agreement about the company's ability to report better earnings than previously predicted, which supports the view of potential upside [4] Group 2: Analyst Insights and Earnings Estimates - There has been increasing optimism among analysts regarding FINW's earnings prospects, as indicated by a 9.7% increase in the Zacks Consensus Estimate for the current year, with no negative revisions [12] - FINW holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, suggesting a strong potential for upside in the near term [13] - A tight clustering of price targets, indicated by a low standard deviation, suggests a high degree of agreement among analysts about the stock's price movement direction [9]

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]

Core Insights - FinWise Bancorp (FINW) is experiencing solid improvement in earnings estimates, indicating a positive outlook for the company's stock price [1][2] - The upward trend in estimate revisions reflects growing analyst optimism regarding FinWise Bancorp's earnings prospects, which is expected to influence its stock price positively [2][3] Current-Quarter Estimate Revisions - The earnings estimate for the current quarter is $0.35 per share, representing a 75.0% increase from the previous year [6] - Over the last 30 days, one estimate has been revised upward with no negative revisions, leading to a 16.67% increase in the Zacks Consensus Estimate [6] Current-Year Estimate Revisions - For the full year, FinWise Bancorp is expected to earn $1.25 per share, reflecting a 34.4% increase from the prior year [7] - The trend for current-year estimate revisions is also positive, with one upward revision and no negative changes, resulting in a 9.65% increase in the consensus estimate [8] Zacks Rank - FinWise Bancorp has achieved a Zacks Rank of 2 (Buy), indicating favorable estimate revisions that suggest strong potential for stock performance [9] - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [9] Stock Performance - FinWise Bancorp shares have increased by 6% over the past four weeks, reflecting investor confidence in the company's earnings growth prospects [10]

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]

Financial Performance - Loan originations totaled $1.8 billion, a 20% increase from $1.5 billion in the prior quarter and a 29% increase from $1.4 billion in the same quarter last year[5] - Net income was $4.9 million, representing a 19% increase from $4.1 million in the prior quarter and a 42% increase from $3.5 million year-over-year[4] - Diluted earnings per share (EPS) were $0.34, up from $0.29 in the prior quarter and $0.25 in the same quarter last year[5] - Net interest income was $18.6 million, up from $14.7 million in the prior quarter and $14.8 million year-over-year[9] - Total non-interest income reached $18,052,000 for the three months ended September 30, 2025, compared to $10,337,000 in the previous quarter, a growth of 74.8%[43] - Strategic Program fees increased to $6,180,000 for the three months ended September 30, 2025, compared to $5,404,000 in the previous quarter, a rise of 14.3%[43] - Net income for the three months ended September 30, 2025, was $4,891,000, up from $4,097,000 in the previous quarter, reflecting a growth of 19.4%[43] Asset and Loan Management - Total assets reached $899.9 million, an increase from $842.5 million as of June 30, 2025, and $683.0 million as of September 30, 2024[22] - As of September 30, 2025, total loans held-for-investment (HFI) increased to $567.8 million, up $37.8 million from June 30, 2025, and $133.8 million from September 30, 2024[24] - Loans held-for-investment totaled $550,534 million with an average yield of 11.76%, compared to $514,222 million and 10.02% in the previous quarter, marking a significant increase in both volume and yield[49] - The composition of loans includes 42.2% in SBA loans, 15.8% in commercial leases, and 14.7% in owner-occupied commercial real estate as of September 30, 2025[23] Credit Quality and Losses - Nonperforming loan balances were $42.8 million, an increase from $39.7 million in the prior quarter and $30.6 million year-over-year[5] - The provision for credit losses was $12.8 million, compared to $4.7 million in the prior quarter and $2.2 million in the same quarter last year[13] - Nonperforming loans totaled $42.8 million, or 7.5% of total loans HFI, as of September 30, 2025, unchanged from the previous quarter but up from 7.1% a year earlier[29] - The allowance for credit losses increased to $25.8 million as of September 30, 2025, reflecting a provision for credit losses of $12.7 million during the quarter[31] - Net charge-offs for the three months ended September 30, 2025, were $3.1 million, compared to $2.8 million in the previous quarter and $2.4 million a year earlier[30] Efficiency and Ratios - The efficiency ratio improved to 47.6%, down from 59.5% in the prior quarter and 67.5% in the same quarter last year[19] - The effective tax rate was 23.7%, down from 24.5% in the prior quarter and 25.1% year-over-year[20] - The leverage ratio decreased to 17.2% as of September 30, 2025, from 18.0% on June 30, 2025, and 20.3% on September 30, 2024, remaining above the well-capitalized requirement of 9.0%[27] - The adjusted efficiency ratio, accounting for credit enhancement program expenses, was 59.7% for the three months ended September 30, 2025, compared to 65.3% in the previous quarter[47] Deposits and Equity - Total deposits as of September 30, 2025, reached $682.3 million, an increase from $635.2 million on June 30, 2025, and $488.7 million on September 30, 2024, driven by growth in brokered time certificates of deposits[25] - Total shareholders' equity increased to $187.8 million as of September 30, 2025, up $5.8 million from June 30, 2025, and $17.4 million from September 30, 2024[26] - Shareholders' equity increased to $183,882 million, up from $178,223 million in the previous quarter, reflecting a positive trend in the company's financial health[45] Strategic Initiatives - The company is expanding its business model by incorporating Payments (MoneyRails™) and BIN Sponsorship offerings to enhance its service capabilities[35] - The strategic program loans with credit enhancement increased by $29.6 million to $41.4 million during the quarter, aligning with the company's strategy to enhance its loan portfolio quality[24]

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].

Company Overview - FinWise is a banking and payments solutions provider to fintechs, emphasizing compliance and risk management[11] - The company has a resilient and profitable business model with compelling growth opportunities[11] - A significant portion of FinWise's workforce, 36% or 69 out of 194 FTEs, is dedicated to IT, Compliance, Risk Management, and BSA functions as of 3Q25[13] Strategic Program Lending (SPL) - Strategic Program Lending (SPL) contributed 48.1% of 3Q25 gross revenue[15] - As of September 30, 2025, Strategic Platform Loans on the balance sheet totaled $219.7 million, with 71.3% held-for-sale (HFS) and 28.7% held-for-investment (HFI)[15] - Strategic Program Fees generated $6.4 million, representing 35.7% of non-interest income in 3Q25[15] Loan Portfolio - As of 3Q25, 40% of the loan portfolio is SBA Guaranteed and Strategic Program HFS[11] - SBA Loans on the balance sheet amounted to $240.1 million as of September 30, 2025, with 55.1% guaranteed and 44.9% unguaranteed[15] - Combined SBA Guaranteed and Strategic Program Loans Held-for-Sale (HFS) increased to 39.9% of the portfolio as of 3Q25[50] Financial Performance - Total deposits reached $682.3 million as of September 30, 2025[51] - The company's efficiency ratio was 47.6% in 3Q25, or 59.7% on a core basis when adjusted for credit enhancement related accounting[79] - Tangible book value per share was $13.84 as of September 30, 2025[87]

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]