Group 1: Iamgold (IAG) - Iamgold is an international gold exploration and mining company based in Canada with a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for Iamgold's current year earnings increased by 35.9% over the last 60 days [1] - Iamgold's shares gained 43.0% over the last three months compared to the S&P 500's gain of 6.5% [1] - The company possesses a Momentum Score of A [1] Group 2: Third Coast Bancshares (TCBX) - Third Coast Bancshares is a bank holding company operating primarily in the Greater Houston, Dallas-Fort Worth, and Austin-San Antonio markets with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for Third Coast Bancshares' current year earnings increased by 5.1% over the last 60 days [2] - Third Coast Bancshares' shares gained 37.7% over the last three months compared to the S&P 500's gain of 6.5% [2] - The company possesses a Momentum Score of A [2] Group 3: FinWise Bancorp (FINW) - FinWise Bancorp is a bank holding company headquartered in Murray, Utah, serving consumers and small businesses with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for FinWise Bancorp's current year earnings increased by 6.6% over the last 60 days [3] - FinWise Bancorp's shares gained 33.4% over the last three months compared to the S&P 500's gain of 6.5% [3] - The company possesses a Momentum Score of A [3]

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].

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].

Core Viewpoint - FinWise Bancorp has shown mixed performance in its recent earnings report, with a notable earnings surprise but a revenue miss compared to consensus estimates [1][2][4]. Financial Performance - The company reported quarterly earnings of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.17 per share, but down from $0.35 per share a year ago [4]. - Revenues for the quarter ended June 2024 were $19.45 million, slightly missing the Zacks Consensus Estimate by 0.19%, and up from $18.96 million in the same quarter last year [2]. - Over the last four quarters, FinWise Bancorp has surpassed consensus EPS estimates four times [5]. Stock Performance - FinWise Bancorp shares have declined approximately 17% since the beginning of the year, contrasting with the S&P 500's gain of 13.8% [3]. - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of underperformance in the near future [9]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $19.98 million, and for the current fiscal year, it is $0.81 on revenues of $79.63 million [10]. - The trend for earnings estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [9]. Industry Context - The Banks - Southwest industry, to which FinWise Bancorp belongs, is currently ranked in the top 42% of over 250 Zacks industries, suggesting a relatively strong position within the sector [11].