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].

Group 1 - FinWise Bancorp (FINW) shares increased by 5.5% to $15.60, with a notable trading volume, and have gained 12.6% over the past four weeks [1][2] - The stock reached a new 52-week high of $15.74, driven by positive investor sentiment following a 50 basis points interest rate cut by the Federal Reserve, which is expected to improve loan demand and alleviate funding cost pressures [2] - The company is projected to report quarterly earnings of $0.20 per share, reflecting a year-over-year decline of 46%, while revenues are expected to be $20.54 million, an increase of 4.6% from the previous year [3] Group 2 - The consensus EPS estimate for FinWise Bancorp has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - FinWise Bancorp holds a Zacks Rank of 1 (Strong Buy), suggesting strong market confidence in the stock's potential [4] - The company is part of the Zacks Banks - Southwest industry, where another stock, First Financial Bankshares (FFIN), has shown a slight increase of 1% to $37.01, with a 0.2% return over the past month [4]

Core Viewpoint - FinWise Bancorp (FINW) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years, highlighting the importance of earnings revisions in stock price movements [1][4]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, with institutional investors using these estimates to determine fair value [4][6]. Recent Developments for FinWise Bancorp - For the fiscal year ending December 2024, FinWise Bancorp is expected to earn $0.91 per share, reflecting a -31.6% change from the previous year, but analysts have raised their estimates by 12.4% over the past three months [8]. - The upgrade to Zacks Rank 1 places FinWise Bancorp in the top 5% of Zacks-covered stocks, suggesting potential for higher stock prices in the near term [10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - The system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 20% of stocks are considered for strong buy recommendations, indicating superior earnings estimate revisions [9][10].

Core Viewpoint - The article emphasizes the importance of identifying and maintaining stock price trends for successful short-term investing, highlighting the use of a specific screening strategy to find stocks with strong fundamentals and positive momentum [1][2]. Group 1: Stock Performance - FinWise Bancorp (FINW) has shown a significant price increase of 42.5% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 14.4% in the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, FINW is trading at 95.1% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - FINW holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% 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 price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like FINW that have the fundamental strength to maintain their recent uptrend [3]. - The article suggests that there are several other stocks that also meet the criteria of the screening strategy, providing additional investment opportunities [8].

This quarterly report represents an earnings surprise of 41.18%. A quarter ago, it was expected that this company would post earnings of $0.20 per share when it actually produced earnings of $0.25, delivering a surprise of 25%. FinWise Bancorp, which belongs to the Zacks Banks - Southwest industry, posted revenues of $19.45 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 0.19%. This compares to year-ago revenues of $18.96 million. The company has topped consensus revenue est ...

Exhibit 99.1 MURRAY, UTAH — July 25, 2024 (GLOBE NEWSWIRE) — FinWise Bancorp (NASDAQ: FINW) ("FinWise" or the "Company"), parent company of FinWise Bank (the "Bank"), today announced results for the quarter ended June 30, 2024. • Loan originations were $1.2 billion, compared to $1.1 billion for the quarter ended March 31, 2024, and $1.2 billion for the second quarter of the prior year • Net interest income was $14.6 million, compared to $14.0 million for the quarter ended March 31, 2024, and $13.7 million f ...

Core Insights - FinWise Bancorp has expanded its Board of Directors by appointing Susan Ehrlich, effective immediately [1] - Ms. Ehrlich has over 25 years of experience in lending, banking, and payments, with a strong background in fintech and financial services [2] - The company is focusing on innovation in the fintech banking and payments industry, aiming to drive growth and create shareholder value [3] Company Overview - FinWise provides banking and payments solutions to fintech brands and is diversifying its business model in 2024 by launching Payments Hub and BIN Sponsorship offerings [4] - The company operates a Strategic Program Lending business through scalable API-driven infrastructure, supporting deposit, lending, and payments programs for leading fintech brands [5] - FinWise emphasizes compliance oversight and risk management to assist fintechs in navigating regulatory requirements [6]

Core Insights - FinWise Bancorp has been ranked 2 on American Banker's list of the 100 top-performing publicly traded banks with under $2 billion in assets as of June 9, 2024, highlighting its strong performance in the banking sector [6] - The company achieved a three-year return on average equity (ROAE) of 27% as of December 31, 2023, significantly surpassing the peer median of 10.91% [3] - 2024 is identified as a key expansion year for FinWise, with plans to diversify its business model by launching Payments Hub and BIN Sponsorship offerings [7] Company Overview - FinWise Bancorp is the parent company of FinWise Bank, providing comprehensive banking and payments solutions to fintech brands [6][7] - The company emphasizes a compliance oversight and risk management-first culture, positioning itself to guide fintechs through regulatory compliance processes [2] Business Operations - FinWise's Strategic Program Lending business utilizes scalable API-driven infrastructure to support deposit, lending, and payments programs for leading fintech brands [4] - The company also manages various lending programs, including SBA 7(a), Owner Occupied Real Estate, and Leasing, which contribute to disciplined balance sheet growth [9]