Core Viewpoint - The article emphasizes the importance of timing and sustainability in stock trends for successful short-term investing, highlighting that sound fundamentals and positive earnings revisions are crucial for maintaining momentum in stock prices [1][2]. Group 1: Stock Performance - FinWise Bancorp (FINW) has shown a solid price increase of 28.5% over the past 12 weeks, indicating strong investor interest and potential upside [4]. - The stock has also increased by 8.6% over the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, FINW is trading at 93.3% of its 52-week high-low range, indicating a potential breakout opportunity [5]. Group 2: Fundamental Strength - FINW holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are key indicators of near-term price movements [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like FINW that are on an uptrend supported by strong fundamentals [3]. - The article suggests that there are multiple stocks passing through this screen, providing additional investment opportunities for trend-focused investors [8].

Financial Data and Key Metrics Changes - Loan originations in Q3 2024 increased to $1.4 billion, up from an average of approximately $1.1 billion over the previous five quarters and $1.2 billion in Q2 2024 [4][7] - Tangible book value per common share rose to $12.90 from $12.61 in the prior quarter [5] - Net income for Q3 was $3.5 million or $0.25 per diluted common share [12] - Average loan balances increased to $492.9 million from $449.9 million in the prior quarter [12] - Net interest income was $14.8 million, slightly up from $14.6 million in the previous quarter [14] - Net interest margin decreased to 9.7% from 10.31% in the prior quarter [14] Business Line Data and Key Metrics Changes - SBA 7(a) loan originations increased due to a gradual pickup in qualified applicants as interest rates began to decline [9] - Commercial leases grew by 13.7% quarter-over-quarter, contributing to a 4.9% growth in total loans held for investment [9] - Noninterest income rose to $6.1 million from $5.2 million in the prior quarter, driven by increased origination fees [15] Market Data and Key Metrics Changes - The company noted a modest decrease in originations in early October 2024 compared to Q3 2024, influenced by seasonal factors [8] - NPL balances increased to $30.6 million from $27.9 million in the prior quarter, with unguaranteed NPLs rising slightly to $12.8 million [11] Company Strategy and Development Direction - The company is focused on enhancing long-term growth through strategic lending programs, having announced three new lending programs in 2024 [4][12] - There is an emphasis on expanding market share through new and existing strategic programs and product cross-selling [5] - The company aims to complete the payments hub by the end of 2024, with expectations for revenue generation in 2025 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operational performance and outlook, particularly regarding the strategic lending business rebounding after industry pressures [6] - The company anticipates a gradual improvement in profitability metrics as infrastructure investments are completed [5] - Management expects some relief in NPL metrics as interest rates decline [11][29] Other Important Information - The effective tax rate for Q3 was 25.1%, with expectations for Q4 to remain around the same level [15] - The company is experiencing a deceleration in expense growth, with expectations for further moderation in Q4 2024 [16] Q&A Session Summary Question: Loan production trends and seasonality - Management is optimistic about originations, noting that trends are improving despite expected seasonality from the Earnest program [17] Question: Impact of callable CDs and SBA on margin - Management indicated that NIM is complex to forecast due to various factors, but expects a decline in NIM during Q4 [19] Question: Updates on payments and card revenue - The payments hub is on track for completion by the end of 2024, with revenue expected to materialize in 2025 [21] Question: Incremental callable CDs and timing - Management provided details on callable CDs, indicating plans to call them in two buckets in November and December [22] Question: Average balance of HFS loans - The increase in HFS loans is primarily due to origination volume, with expectations for some moderation in Q4 [23][24] Question: Fee income and valuation of investment in BFG - Management noted that the valuation has been negatively impacted by slower SBA loan generation but expects improvement as activity picks up [25] Question: Expense growth moderation - Management anticipates a slight increase in expenses for Q4, but at a lower growth rate compared to previous quarters [26]

Core Insights - FinWise Bancorp (FINW) reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, but down from $0.37 per share a year ago, indicating a 32.43% year-over-year decline [1] - The company achieved a revenue of $20.82 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.35% and showing a year-over-year increase from $19.64 million [1] - FinWise Bancorp has consistently surpassed consensus EPS estimates over the last four quarters, achieving earnings surprises of 25% and 41.18% in the most recent quarters [1][2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.21, with expected revenues of $20.99 million, while the estimate for the current fiscal year is $0.91 on revenues of $80.46 million [4] - The trend of estimate revisions for FinWise Bancorp is currently favorable, contributing to a Zacks Rank 1 (Strong Buy) for the stock, suggesting expected outperformance in the near future [4] Industry Context - The Banks - Southwest industry, to which FinWise Bancorp belongs, is currently ranked in the top 18% of over 250 Zacks industries, indicating a strong performance potential compared to lower-ranked industries [5] - The broader finance sector includes other companies like Claros Mortgage Trust, Inc. (CMTG), which is expected to report a significant year-over-year earnings increase of 181.3% for the quarter ended September 2024 [5]

Financial Performance - Net income for Q3 2024 was $3.5 million, an increase from $3.2 million in Q2 2024 but a decrease from $4.8 million in Q3 2023[12]. - Net interest income was $14.8 million for Q3 2024, compared to $14.6 million in Q2 2024 and $14.4 million in Q3 2023[4]. - The annualized return on average equity was 8.3% for Q3 2024, compared to 7.9% in Q2 2024 and 12.8% in Q3 2023[3]. - Total interest income for the three months ended September 30, 2024, was $18,924, an increase of 4% from $18,422 in the previous quarter and up 10% from $17,212 in the same quarter last year[36]. - Net interest income after provision for credit losses was $12,606, compared to $12,230 in the previous quarter and $11,341 in the same quarter last year, reflecting a year-over-year increase of 11%[36]. - Non-interest income totaled $6,054, up 17% from $5,166 in the previous quarter and up 24% from $4,892 in the same quarter last year[36]. - Net income for the three months ended September 30, 2024, was $3,454, an increase from $3,180 in the previous quarter but a decrease from $4,804 in the same quarter last year[36]. - Earnings per share (diluted) for the quarter was $0.25, compared to $0.24 in the previous quarter and $0.37 in the same quarter last year[36]. Loan and Asset Management - Loan originations increased to $1.4 billion in Q3 2024, up from $1.2 billion in Q2 2024 and $1.1 billion in Q3 2023[2]. - Total assets increased to $683.0 million as of September 30, 2024, from $617.8 million in Q2 2024 and $555.1 million in Q3 2023[13]. - Total gross loans held for investment as of September 30, 2024, were $434.0 million, an increase of 4.0% from $414.3 million as of June 30, 2024, and a 28.6% increase from $337.6 million as of September 30, 2023[15]. - Strategic Program loans held-for-sale rose to $84.000 million, a significant increase of 26.2% from $66.542 million as of June 30, 2024[35]. Nonperforming Loans and Credit Losses - Nonperforming loans totaled $30.6 million as of September 30, 2024, up from $27.9 million in Q2 2024 and $10.7 million in Q3 2023[2]. - Nonperforming loans were $30.6 million, or 7.1% of total loans held for investment, as of September 30, 2024, compared to 6.5% as of June 30, 2024, and 3.2% as of September 30, 2023[20]. - The provision for credit losses was $2.2 million for Q3 2024, down from $2.4 million in Q2 2024 and $3.1 million in Q3 2023[7]. - Net charge-offs for the three months ended September 30, 2024, were $2.4 million, compared to $1.9 million for the prior quarter and $2.2 million for the same period last year[21]. - The allowance for credit losses to total loans held for investment was 2.9% as of September 30, 2024, down from 3.2% as of June 30, 2024, and 3.8% as of September 30, 2023[20]. Deposits and Equity - Total period-end deposits increased to $488.7 million as of September 30, 2024, from $429.2 million as of June 30, 2024[16]. - The company reported an increase in noninterest-bearing demand deposits and interest-bearing demand deposits, contributing to the growth in total deposits[16]. - As of September 30, 2024, 35.4% of deposits were uninsured, up from 31.3% as of June 30, 2024[16]. - Total shareholders' equity increased by $4.6 million to $170.4 million from $165.8 million at June 30, 2024, and by $20.0 million from $150.4 million at September 30, 2023[17]. - Shareholders' equity totaled $170.370 million, up from $165.796 million as of June 30, 2024, indicating a growth of approximately 3.4%[35]. Efficiency and Expenses - The efficiency ratio was 67.5% for Q3 2024, compared to 66.3% in Q2 2024 and 50.4% in Q3 2023[10]. - Total non-interest expense increased to $14,049, compared to $13,218 in the previous quarter and $9,733 in the same quarter last year, indicating a year-over-year increase of 44%[39]. - The efficiency ratio for the three months ended September 30, 2024, was 67.5%, slightly up from 66.8% in the previous quarter and significantly higher than 50.4% in the same quarter last year[39]. Future Strategies - The company plans to expand its business model by launching Payments Hub and BIN Sponsorship offerings in 2024[27]. - FinWise is focused on maintaining compliance oversight and risk management to support fintech brands effectively[27]. - The company is well-positioned to guide fintechs through regulatory compliance processes, enhancing its service offerings[27]. - Future growth strategies include the potential launch of new products and services, as well as market expansion initiatives[30]. Tax and Regulatory - The effective tax rate was 25.1% for Q3 2024, compared to 23.9% in Q2 2024 and 26.1% in Q3 2023[11]. - The leverage ratio as of September 30, 2024, was 20.3%, a decrease from 20.8% as of June 30, 2024, and 22.1% as of September 30, 2023[18].

Core Viewpoint - The sustainability of a trend is crucial for successful short-term investing, and confirming fundamental factors is essential to maintain momentum in stocks [1][2]. Group 1: Trend Analysis - Timing entries into a trend significantly impacts investment success, as trends can reverse unexpectedly, leading to potential losses [1][2]. - A predefined screening strategy, "Recent Price Strength," helps identify stocks with strong fundamentals that can sustain their upward trends [3]. Group 2: Company Spotlight - FinWise Bancorp (FINW) - FinWise Bancorp has shown a solid price increase of 35.2% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 10.9% in the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, FINW is trading at 89.5% of its 52-week high-low range, indicating a potential breakout [5]. Group 3: Fundamental Strength - FINW holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7]. - The Zacks Rank system has a proven track record, with Rank 1 stocks averaging a +25% annual return since 1988 [7]. Group 4: Additional Opportunities - Besides FINW, there are other stocks that meet the criteria of the "Recent Price Strength" screen, providing additional investment opportunities [8]. - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8].

FinWise Bancorp (FINW) shares ended the last trading session 5.5% higher at $15.60. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 12.6% gain over the past four weeks. Shares of FinWise Bancorp touched a new 52-week high of $15.74 on Monday. The recent 50 basis points interest rate cut by the Federal Reserve led to an optimistic investor sentiment toward bank stocks. As rates go down, demand for loans is expected ...

Investors might want to bet on FinWise Bancorp (FINW) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. ...

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it. Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. - ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.001 per share FINW The NASDAQ Stock Market LLC UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 __________________________________________________ FORM 10-Q __________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR o TRANSIT ...

FinWise Bancorp (NASDAQ:FINW) Q2 2024 Earnings Conference Call July 25, 2024 5:30 PM ET Company Participants Kent Landvatter - CEO Jim Noone - President Bob Wahlman - CFO Juan Arias - Corporate Development & IR Conference Call Participants Andrew Liesch - Piper Sandler Andrew Terrell - Stephens Operator Good afternoon and thank you for joining us today for FinWise Bancorp's Second Quarter 2024 Earnings Conference Call. Earlier today, we filed our earnings release and posted it to our Investor website at inv ...