Group 1 - FinWise Bancorp (FINW) shares have increased by 0.4% over the past four weeks, closing at $17.51, with a mean price target of $22.67 indicating a potential upside of 29.5% [1] - The mean estimate includes three short-term price targets with a standard deviation of $1.53, where the lowest estimate is $21.00 (19.9% increase) and the highest is $24.00 (37.1% increase) [2] - Analysts show strong agreement in revising earnings estimates higher, which correlates with potential stock price movements, as indicated by a 6.1% increase in the Zacks Consensus Estimate for the current year [4][12] Group 2 - The Zacks Rank for FINW is 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates, suggesting a strong potential upside [13] - While price targets are often viewed as unreliable indicators, the direction implied by these targets may serve as a useful guide for investors [14]

Core Insights - FinWise Bancorp reported strong growth in loan originations and credit-enhanced balances, positioning these as key components of its growth strategy for lower-risk assets [1][3][4] - The company achieved fourth-quarter loan originations of $1.6 billion, exceeding initial guidance of $1.4 billion, and full-year 2025 originations totaled $6.1 billion, reflecting a 22% year-over-year increase [3][4] - Management emphasized a sustainable production level supported by both established and new partnerships, despite seasonal fluctuations in origination performance [2][3] Financial Performance - Net income for the fourth quarter was reported at $3.9 million, with diluted earnings per share of $0.27, impacted by higher net charge-offs [11] - Net interest income increased to $24.6 million from $18.6 million in the prior quarter, driven by a rise in credit-enhanced balances [12] - Non-interest income rose to $22.3 million, primarily due to higher credit enhancement income, while non-interest expenses increased to $23.7 million due to credit enhancement guarantee and servicing costs [13] Credit Trends - Quarterly net charge-offs increased to $6.7 million from $3.1 million in the previous quarter, with provisions for loan losses rising to $17.7 million [7] - Non-performing loan (NPL) balances rose modestly to $43.7 million, with proactive measures taken to manage collateral securing NPLs [9] - The company noted that 55% of total NPLs were guaranteed by the federal government, indicating a level of risk mitigation [9] 2026 Outlook - For 2026, management expects a normalized quarterly origination baseline of approximately $1.4 billion, with a 5% annual growth assumption [15] - Credit-enhanced balances are projected to grow organically by $8 million to $10 million per month on average [17] - The company anticipates that student lending seasonality will return in 2026, impacting origination volumes [15] Strategic Initiatives - FinWise is focused on enhancing its BIN sponsorship and payments strategy, with a measured ramp-up expected [18] - The company is adopting AI in various operational areas, emphasizing secure implementation to protect sensitive data [19] - Management is exploring expanded use cases for AI, including compliance and fraud detection, to improve operational efficiency [19]

分组1 - FinWise Bancorp reported quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.35 per share, representing an earnings surprise of -22.86% [1] - The company posted revenues of $46.85 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.97%, and compared to year-ago revenues of $21.13 million [2] - Over the last four quarters, FinWise Bancorp has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] 分组2 - The current consensus EPS estimate for the coming quarter is $0.37 on revenues of $35.5 million, and for the current fiscal year, it is $1.65 on revenues of $152.5 million [7] - The Zacks Industry Rank for Banks - Southwest is currently in the top 32% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Data and Key Metrics Changes - FinWise Bancorp reported a net income growth of 26% for 2025, with a fourth-quarter net income of $3.9 million and diluted earnings per share of $0.27 [4][17] - Net interest income increased to $24.6 million from $18.6 million in the prior quarter, with a net interest margin rising to 11.42% compared to 9.01% [19] - Non-interest income grew to $22.3 million from $18 million in the previous quarter, primarily due to increases in credit enhancement income [20] Business Line Data and Key Metrics Changes - Loan originations for Q4 totaled $1.6 billion, exceeding guidance of $1.4 billion, bringing full-year originations to $6.1 billion, a 22% year-over-year growth [4][22] - Credit-enhanced product balances reached $118 million, surpassing the $115 million outlook [6] - SBA loan originations decreased quarter-over-quarter due to processing delays, but the environment normalized post-government reopening [15][16] Market Data and Key Metrics Changes - Average interest-bearing deposits rose to $567.4 million from $523.9 million, driven by increased certificates of deposit and non-interest-bearing demand deposits [22] - The company anticipates a quarterly run rate of approximately $1.4 billion in loan originations for Q1 2026, with a projected 5% growth for the full year [22][23] Company Strategy and Development Direction - The company is focused on building durable, long-term growth through strategic partnerships and expanding its credit-enhanced loan portfolio [9][10] - FinWise is exploring AI opportunities to enhance efficiency and automation while safeguarding sensitive data [9][70] - The company aims to maintain a disciplined approach to expense management while pursuing growth opportunities [4][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of credit trends and the overall performance of the portfolio [11] - The company expects a gradual moderation in non-performing loan migration, with proactive measures taken to manage risk [24][25] - Management views the current economic environment as stable, with solid demand for SBA loans despite recent originations being affected by timing delays [29] Other Important Information - The increase in net charge-offs for Q4 was attributed to refined servicing standards, which are expected to be a one-time event [12][68] - The company is committed to maintaining a positive operating leverage ratio, with revenues expected to grow faster than expenses [65] Q&A Session Summary Question: Opportunities to lower CD funding costs - Management indicated that CD funding costs are tied to wholesale funding and will decrease gradually as the Fed reduces interest rates [26][27] Question: Progression of MoneyRails and BIN Sponsorship potential - Management remains confident in the BIN payments strategy, although timing may be pushed out beyond initial expectations [28] Question: SBA business outlook and originations - Management noted solid demand for SBA loans, with a slight decrease in originations due to timing delays rather than demand issues [29] Question: Surge in non-interest-bearing deposits - The surge was attributed to strategic partners facilitating student loans, requiring collateral deposits [36] Question: Recontracting process with existing partners - Management reported a historically smooth recontracting process, with no significant concerns regarding upcoming renewals [40][41] Question: Impact of fintech obtaining bank charters - Management believes that not all fintechs will benefit from a banking charter, as it may not align with their business models [42][43] Question: Cross-selling products with existing partners - Management highlighted the potential for cross-selling products with existing partners, noting that it does not require the same scale as standalone products [46][47] Question: Clarification on the impact of servicing and administrative standards - The increased provision related to servicing changes was a one-time event, costing approximately $0.08 in earnings per share [68] Question: Examples of AI usage - Management is utilizing AI for coding, quality assurance, and compliance, with a focus on enhancing operational efficiency [70][71]

Financial Data and Key Metrics Changes - FinWise Bancorp reported a net income growth of 26% for 2025, with a fourth-quarter net income of $3.9 million and diluted earnings per share of $0.27 [4][17] - Net interest income increased to $24.6 million from $18.6 million in the prior quarter, with a net interest margin rising to 11.42% compared to 9.01% in the previous quarter [19] - Non-interest income grew to $22.3 million from $18 million in the prior quarter, primarily due to increases in credit enhancement income [20] Business Line Data and Key Metrics Changes - Loan originations totaled $1.6 billion in Q4, exceeding guidance of $1.4 billion, bringing full-year originations to $6.1 billion, a 22% year-over-year growth [4][22] - Credit-enhanced product balances reached $118 million, surpassing the $115 million outlook [6] - SBA loan originations decreased quarter-over-quarter due to processing delays, but the environment normalized post-government reopening [15][16] Market Data and Key Metrics Changes - Average interest-bearing deposits increased to $567.4 million from $523.9 million in the prior quarter, driven by certificates of deposit and non-interest-bearing demand deposits [22] - The company anticipates a quarterly run rate of approximately $1.4 billion in loan originations for Q1 2026, with a 5% growth rate projected for the full year [22][23] Company Strategy and Development Direction - The company is focused on building durable, long-term growth through strategic partnerships and expanding its credit-enhanced loan portfolio [9][10] - FinWise is exploring AI opportunities to enhance efficiency and automation while safeguarding sensitive data [9][70] - The company aims to maintain a disciplined approach to expense management while pursuing growth opportunities [4][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook ahead, emphasizing the stability of credit trends and the proactive management of the portfolio [11][10] - The company expects a gradual moderation in non-performing loan migration, with a focus on maintaining a strong portfolio performance [24][15] - Management indicated that the refinement of servicing standards is viewed as a one-time event impacting Q4 earnings [68] Other Important Information - The efficiency ratio for the quarter was reported at 50.5%, up from 47.6% in the prior quarter, reflecting increased expenses related to credit enhancement guarantees [21] - The company is committed to driving sustainable operating leverage with a long-term goal of lowering the core efficiency ratio [24] Q&A Session Summary Question: Opportunities to lower CD funding costs - Management indicated that CD funding costs are dependent on wholesale funding and will decrease gradually as the Fed reduces interest rates [26][27] Question: Progression of MoneyRails and BIN Sponsorship potential - Management remains confident in the BIN payments strategy, though timing may be pushed out beyond initial expectations [28] Question: SBA business outlook and originations - Management noted solid demand for SBA loans, with a slight decrease in originations due to timing delays rather than demand issues [29] Question: Surge in non-interest-bearing deposits - The surge was attributed to strategic partners facilitating student loans and maintaining collateral deposits [36] Question: Recontracting process with existing partners - Management reported a historically smooth recontracting process with no significant concerns regarding upcoming renewals [40][41] Question: Impact of fintechs obtaining bank charters - Management believes that not all fintechs will benefit from a banking charter, and FinWise's scalable platform allows for continued partnership growth [42][44] Question: Cross-selling products with existing partners - Management highlighted the potential for cross-selling products with existing partners, noting that providing additional capabilities does not require the same levels of scale [46][47] Question: Impact of servicing and administrative standards refinement - The refinement is considered a one-time event that impacted Q4 earnings by approximately $0.08 per share [68] Question: Use of AI in operations - Management is excited about AI's potential to enhance compliance, operations, and workflow automation [70][71]

Financial Data and Key Metrics Changes - FinWise Bancorp reported a net income of $3.9 million for Q4 2025, with diluted earnings per share of $0.27, reflecting a 26% year-over-year growth in net income [4][16] - Net interest income increased to $24.6 million from $18.6 million in the prior quarter, driven by growth in credit-enhanced balances [17][18] - The net interest margin rose to 11.42% compared to 9.01% in the previous quarter, primarily due to the growth in the credit-enhanced loan portfolio [18] - Non-interest income was $22.3 million, up from $18 million in the prior quarter, mainly due to increases in credit enhancement income [19] Business Line Data and Key Metrics Changes - Loan originations totaled $1.6 billion in Q4, exceeding guidance of $1.4 billion, bringing full-year originations to $6.1 billion, a 22% increase year-over-year [4][5] - The credit-enhanced product saw balances of $118 million, surpassing the $115 million outlook [5] - Quarterly net charge-offs were $6.7 million, up from $3.1 million in the prior quarter, influenced by updated servicing standards [11] Market Data and Key Metrics Changes - The SBA loan originations decreased quarter-over-quarter due to processing delays from staffing cuts at the SBA and the government shutdown [13][15] - The total non-performing loan (NPL) balance was $43.7 million at the end of the quarter, with a modest increase of less than $1 million [12] Company Strategy and Development Direction - The company is focused on building durable, long-term growth by pursuing opportunities that enhance future value, including strategic partnerships and the integration of AI technologies [8][9] - FinWise aims to expand its credit-enhanced loan portfolio while managing risk through disciplined approaches to expense management and operational efficiency [4][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook ahead, emphasizing the stability of credit trends and the potential for continued growth in loan originations [10][22] - The company anticipates a gradual moderation in NPL migration and expects to maintain a stable SBA portfolio while continuing to grow the credit-enhanced segment [22][56] Other Important Information - The company is actively exploring AI opportunities to drive efficiency and automation across various functions, including compliance and operations [8][66] - The efficiency ratio for the quarter was reported at 50.5%, compared to 47.6% in the prior quarter, indicating a focus on sustainable operating leverage [20] Q&A Session Summary Question: Opportunities to lower CD funding costs - Management indicated that CD funding costs are tied to wholesale funding rates, which may decrease gradually as the Fed lowers interest rates [25] Question: Progression of MoneyRails and BIN Sponsorship potential - Management remains confident in the BIN payments strategy, although the timing may extend beyond initial expectations [26] Question: SBA business outlook and originations - Management noted solid demand for SBA loans, with a slight decrease in originations due to timing delays rather than demand issues [28] Question: Surge in non-interest-bearing deposits - The increase in deposits was attributed to strategic partners preparing for higher student loan volumes, which are expected to decrease as origination volumes normalize [34] Question: Recontracting process with partners - Management reported a historically positive recontracting process, with no significant concerns regarding upcoming contract renewals [39] Question: Impact of fintech obtaining bank charters - Management believes that not all fintechs will benefit from obtaining a bank charter, as it may not align with their business models [41] Question: Cross-selling products with existing partners - Management highlighted the potential for cross-selling products to existing partners, which does not require the same scale as standalone products [45]

January 2026 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 ...

Financial Performance - Loan originations for 2025 totaled $6.1 billion, representing a 22% year-over-year growth[3] - Net income for 2025 was $16.1 million, a 26% increase compared to 2024[3] - Diluted earnings per share (EPS) for 2025 were $1.13, up from $0.93 in 2024[6] - Net income for Q4 2025 was $3.9 million, down from $4.9 million in Q3 2025 and up from $2.8 million in Q4 2024[23] - Net income rose to $16,091 thousand in 2025 compared to $12,742 thousand in 2024, reflecting a growth of 26.3%[47] - Earnings per share (basic) increased to $1.20 in 2025 from $0.98 in 2024, an increase of 22.4%[47] Loan Originations and Assets - Fourth quarter loan originations were $1.6 billion, exceeding initial guidance of $1.4 billion[3] - Total assets increased to $977.1 million as of December 31, 2025, from $899.9 million as of September 30, 2025, and $746.0 million as of December 31, 2024[24] - Total assets grew to $920,074 thousand in 2025 from $884,833 thousand in 2024, an increase of 4.0%[49] - Loans held-for-investment (HFI) increased by $27.5 million from Q3 2025 and $130.1 million from Q4 2024, totaling $595.3 million as of December 31, 2025[26] Income and Expenses - Net interest income for the fourth quarter was $24.6 million, compared to $18.6 million in the prior quarter[10] - Non-interest income for the fourth quarter increased to $22.3 million, driven by higher credit enhancement income[16] - Total non-interest income surged to $58,483 thousand in 2025, up from $22,485 thousand in 2024, marking a significant increase of 160.5%[47] - Total non-interest expense increased to $70,333 thousand in 2025 from $52,835 thousand in 2024, a rise of 33.2%[47] Credit Losses and Allowances - Provision for credit losses was $17.7 million for the fourth quarter, up from $3.9 million in the prior year[15] - The allowance for credit losses increased to $36.8 million, representing 6.2% of total loans held-for-investment as of December 31, 2025, up from 4.5% in Q3 2025[33] - The allowance for credit losses as of December 31, 2025, was $36,796 thousand, an increase from $25,778 thousand as of September 30, 2025, and $13,176 thousand as of December 31, 2024[62] Efficiency and Ratios - The efficiency ratio for the fourth quarter was 50.5%, an improvement from 64.2% in the prior year[21] - The leverage ratio decreased to 16.9% as of December 31, 2025, from 17.2% in Q3 2025, remaining above the well-capitalized requirement of 9.0%[29] - The net interest margin improved to 11.42% in 2025 from 9.01% in 2024[49] - The efficiency ratio for the three months ended December 31, 2025, was 50.5%, compared to 47.6% in the previous quarter and 64.2% in the same quarter last year[53] Strategic Initiatives - The company is expanding its business model by incorporating Payments (MoneyRails™) and BIN Sponsorship offerings to enhance its service offerings[37] - The company anticipates continued growth in its loan portfolios in 2026, focusing on higher-quality, lower-interest rate loans[26] Shareholder Actions - The company repurchased 44,608 shares for $0.5 million since the inception of the share repurchase program in March 2024, with no shares repurchased in Q4 2025[30]

Core Insights - FinWise Bancorp reported a strong performance in 2025, with net income growing by 26% compared to 2024, and loan originations reaching $6.1 billion, reflecting a 22% year-over-year increase [3][4][19]. Financial Performance - Loan originations for the fourth quarter of 2025 totaled $1.6 billion, exceeding initial guidance of $1.4 billion, while full-year originations reached $6.1 billion [3][4]. - Net income for the fourth quarter was $3.9 million, compared to $4.9 million in the prior quarter and $2.8 million in the same quarter of the previous year [5][19]. - Diluted earnings per share (EPS) for the fourth quarter were $0.27, down from $0.34 in the prior quarter but up from $0.20 year-over-year [5][19]. - The efficiency ratio improved to 50.5% in the fourth quarter, compared to 47.6% in the prior quarter and 64.2% in the same quarter last year [5][17]. Loan Portfolio and Asset Quality - Total loans held-for-investment increased to $595.3 million as of December 31, 2025, up from $567.8 million in the prior quarter and $465.2 million year-over-year [20][21]. - Nonperforming loans were recorded at $43.7 million, or 7.3% of total loans held-for-investment, showing a slight increase from $42.8 million in the prior quarter [28][30]. - The allowance for credit losses increased to $36.8 million, reflecting a higher provision for credit losses due to growth in the credit enhanced loan portfolio [31][32]. Non-Interest Income and Expenses - Non-interest income for the fourth quarter was $22.3 million, an increase from $18.1 million in the prior quarter, primarily driven by higher credit enhancement income [13][14]. - Total non-interest expenses rose to $23.7 million, up from $17.4 million in the prior quarter, largely due to increased credit enhancement servicing expenses [15][16]. Balance Sheet and Capital Ratios - Total assets reached $977.1 million as of December 31, 2025, up from $899.9 million in the prior quarter, driven by growth in loans and deposits [20][41]. - The leverage ratio was reported at 16.9%, remaining well above the regulatory well-capitalized requirement of 9.0% [26]. Shareholder Equity and Repurchase Program - Total shareholders' equity increased to $193.2 million as of December 31, 2025, up from $187.8 million in the prior quarter, primarily due to net income generated during the period [25]. - 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 in the fourth quarter of 2025 [27].

Core Viewpoint - FinWise Bancorp will report its fourth quarter and full year 2025 financial results on January 29, 2026, and will host a conference call and webcast to discuss these results [1]. Conference Call Information - The conference call is scheduled for 5:00 p.m. ET on January 29, 2026, with dial-in numbers provided for both toll-free and international participants [2]. - Participants are encouraged 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 conference call, in addition to live questions from analysts [4]. About FinWise Bancorp - FinWise Bancorp provides Banking and Payments solutions to fintech brands, leveraging a scalable API-driven infrastructure for its Strategic Program Lending business [5]. - The Company offers a Credit Enhanced Balance Sheet Program to help diversify funding sources and manage capital efficiency for lending and card programs [5]. - FinWise also manages various Lending programs, including SBA 7(a), Owner Occupied Commercial Real Estate, and Leasing, while expanding its business model to include Payments and BIN Sponsorship offerings [5]. - The Company emphasizes compliance oversight and risk management to assist fintechs in meeting regulatory requirements [5].