Finwise Bancorp (FINW) announced a new share repurchase program. Per the plan, the company is authorized to buy back up to 641,832 shares, which is roughly 5% of its total outstanding shares, as of Mar 6, 2024. The program is set to expire on Mar 31, 2026.FINW had announced a share repurchase program in August 2022, authorizing the buyback of up to 644,241 shares. The company completed this program during the third quarter of 2023.Kent Landvatter, CEO of Finwise Bancorp, said, “Our differentiated business m ...

SAN FRANCISCO--(BUSINESS WIRE)--Earnest, a fintech company empowering students to maximize their financial futures, has partnered with FinWise Bank, a subsidiary of FinWise Bancorp, to enhance its portfolio of Private Student Loan products, including for parents, undergraduate, and graduate students. This collaboration supports Earnest’s ongoing commitment to provide innovative and impactful products that help students and their families pay for college when federal aid is insufficient. FinWise Bank is E ...

- Promotes Robert Keil and Richard Thiessens to Executive Vice Presidents -- Highlights Company's Commitment to Delivering on Strategic Initiatives - MURRAY, Utah, Feb. 05, 2024 (GLOBE NEWSWIRE) -- FinWise Bancorp (NASDAQ:FINW) ("FinWise" or the "Company"), parent company of FinWise Bank (the "Bank"), today announced the promotions of Chief Fintech Officer Robert Keil and Chief Technology Officer Richard Thiessens to the added title of Executive Vice President. "With evolving customer needs, technological a ...

FinWise Bancorp (FINW) came out with quarterly earnings of $0.32 per share, beating the Zacks Consensus Estimate of $0.30 per share. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.67%. A quarter ago, it was expected that this company would post earnings of $0.25 per share when it actually produced earnings of $0.37, delivering a surprise of 48%.Over the last four quarters, the company has ...

- Net Income of $4.2 Million for Fourth Quarter of 2023 - - Diluted Earnings Per Share of $0.32 for Fourth Quarter of 2023 - MURRAY, Utah, Jan. 29, 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 December 31, 2023. Fourth Quarter 2023 Highlights Loan originations were $1.2 billion, compared to $1.1 billion for the quarter ended September 30, 2023, and $1.2 billion for the fourth qu ...

Financial Performance - Net income for the three months ended September 30, 2023, was $4.8 million, an increase of $1.1 million, or 31.5%, from $3.7 million in the same period of 2022, driven by a $4.4 million increase in interest income[281]. - Net income for the nine months ended September 30, 2023, decreased by $5.3 million to $13.3 million, a decline of 28.4% compared to the same period in 2022[300]. - Earnings per share for the three months ended September 30, 2023, were $0.38 basic and $0.37 diluted, compared to $0.28 basic and $0.27 diluted in the same period of 2022[292]. - Net income for the three months ended September 30, 2023, increased by $1.1 million to $4.8 million compared to the same period in 2022, driven by an increase in interest income and a decrease in provision for credit losses[326]. Interest Income and Expenses - The net interest margin for the quarter ended September 30, 2023, was 11.77%, down from 14.93% in the same quarter of 2022, primarily due to a $12.1 million decrease in average balances of loans held for sale[278]. - Total interest income increased by $7.4 million, or 19.0%, while interest expense rose by $5.5 million, or 676.4%, due to a shift in the deposit portfolio mix[303]. - Interest expense increased by $2.5 million, or 821.8%, due to a shift in the deposit portfolio mix from lower costing deposits to higher costing deposits[281]. - The net interest margin decreased to 12.11% from 13.96% year-over-year, reflecting changes in interest-earning assets and liabilities[307]. Loan Originations and Portfolio - Loan originations decreased by $0.4 billion to $1.1 billion for the three months ended September 30, 2023, and decreased by $3.0 billion to $3.1 billion for the nine months ended September 30, 2023, due to adverse market conditions[279]. - The company has expanded its loan origination relationships to new markets across the United States, contributing to its growth and profitability[276]. - The company retained a greater percentage of the guaranteed portion of SBA loans on its balance sheet in 2023, aiming to enhance interest income amid declining gain-on-sale revenue[1]. - Total loans held for investment rose to $337,635 thousand as of September 30, 2023, up from $236,601 thousand as of December 31, 2022, an increase of 42.7%[1]. Assets and Deposits - Total assets increased to $555.1 million as of September 30, 2023, an increase of $154.3 million, or 38.5%, from $400.8 million as of December 31, 2022[318]. - Total deposits as of September 30, 2023, were $386.8 million, compared to $242.9 million as of December 31, 2022[286]. - Total period end deposits as of September 30, 2023, were $386.8 million, a significant increase from $243.0 million at December 31, 2022[405]. - Noninterest-bearing demand deposits increased to $94.3 million, or 24.4% of total deposits, compared to $78.8 million, or 32.5% at December 31, 2022[405]. Noninterest Income and Expenses - Total noninterest income for the three months ended September 30, 2023, decreased by $2.3 million, or 30.5%, to $5.2 million compared to the same period in 2022, primarily due to an $1.6 million, or 81.4%, reduction in gain on sale of loans[313]. - For the nine months ended September 30, 2023, total noninterest income decreased by $12.6 million, or 45.6%, to $15.0 million compared to the same period in 2022, mainly due to an $8.1 million, or 86.7%, reduction in gain on sale of loans[314]. - Noninterest expense for the nine months ended September 30, 2023, was $28.8 million, a slight increase of $270, or 0.9%, compared to $28.5 million for the same period in 2022[316]. - Noninterest expense increased by 18.9% to $10.1 million for the three months ended September 30, 2023, primarily due to higher salaries and employee benefits[1]. Credit Losses and Risk Management - The provision for credit losses decreased by $1.9 million, or 18.3%, contributing to the offset of the decline in net income[303]. - The allowance for credit losses (ACL) totaled $12.986 million as of September 30, 2023, with 55.4% attributed to Strategic Program loans[396]. - The company maintains a proactive approach to managing credit risk, focusing on early identification and resolution of problem loans[361]. - The Company had a total of $10.7 million in nonperforming assets as of September 30, 2023, an increase from no nonperforming assets at December 31, 2022[388]. Tax and Equity - The effective income tax rate for the nine months ended September 30, 2023, was 26.1%, down from 31.3% in the same period of 2022, influenced by nondeductible wages and state taxes[289]. - Total shareholders' equity as of September 30, 2023, was $150.4 million, reflecting an increase of $9.9 million, or 7.1%, from $140.5 million as of December 31, 2022[318]. - The company’s total equity to total assets ratio was 27.1% as of September 30, 2023, down from 34.9% as of December 31, 2022[443]. Internal Controls - There were no changes in the Company's internal controls over financial reporting during the fiscal quarter[450]. - The Company reported that there are no material effects on internal controls over financial reporting[450]. - The Company is likely to maintain its current internal controls without significant changes[450].

Financial Data and Key Metrics Changes - For Q3 2023, the company generated revenue of $22.4 million, with net income of $4.8 million and diluted earnings per share of $0.37, reflecting a return on average equity of 12.8% [7][42] - The tangible book value per common share increased to $12.04 from $11.59 in the previous quarter [10] - The efficiency ratio improved to 51.3% from 52.7% in the prior quarter, although it was higher than 42.3% in the same period last year [13][53] Business Line Data and Key Metrics Changes - The loans held for investment portfolio grew by 16.2% quarter-over-quarter, driven by strong SBA 7(a) lending [6][27] - Loan originations totaled $1.1 billion for the quarter, down from $1.2 billion in Q2 and $1.5 billion in the prior year [68] - Non-interest income was $5.2 million, slightly down from $5.3 million in the previous quarter and significantly lower than $7.5 million in the same quarter last year [71] Market Data and Key Metrics Changes - Average loan balances increased by 9.4% to $354.6 million from $324.1 million last quarter, and up 34.5% from $263.6 million in the prior year [41] - Average interest-bearing deposits rose to $255.8 million from $219.1 million in the second quarter and $104.8 million during the prior year period [69] Company Strategy and Development Direction - The company is focused on expanding its Banking-as-a-Service initiative and expects to launch a card sponsorship business and payments hub in the first half of 2024 [26][56] - The strategy includes retaining a higher balance of government-guaranteed loans to generate recurring growth in interest income with minimal credit risk [28] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the higher-for-longer interest rate outlook and tight capital markets impacting loan originations through 2023 and into 2024 [8] - Despite macro challenges, the company remains confident in its ability to manage growth and credit performance due to its experienced team and strong capital levels [47] Other Important Information - The company repurchased all remaining shares under the Board-approved buyback plan, focusing on capital deployment to support organic growth opportunities [11] - Non-performing loans increased to $10.7 million, primarily driven by the SBA portfolio, with $4.7 million guaranteed by the SBA [33][77] Q&A Session Summary Question: What is the breakdown of non-accruals this quarter? - $10.4 million of the $10.7 million in non-accruals is attributable to the SBA portfolio, with $4.7 million guaranteed by the SBA [77] Question: How is the rollout of the card programs and payments hub progressing? - The rollout is on track for the first half of 2024, with early successes in staffing and no major roadblocks reported [78][80] Question: What are the expectations for loan growth and capital management? - Loan growth is expected to be stable, but there may be a slight decrease in SBA originations due to economic uncertainty [84] - The company is assessing capital management strategies, including potential future buybacks, while maintaining sufficient capital for growth [87][88]

Financial Performance - Net income for the three months ended June 30, 2023 decreased by $0.8 million to $4.6 million compared to the same period in 2022, primarily due to lower strategic program fees and higher interest expenses [193]. - Net income for the six months ended June 30, 2023 was $8.5 million, a decrease of 43.0% from $14.9 million for the same period in 2022 [199]. - Net income for Q2 2023 was $4.6 million, a decrease of 15.5% from $5.5 million in Q2 2022, primarily due to a $2.2 million decline in strategic program fees and a $2.0 million increase in interest expense [215]. - The company experienced a $10.3 million decrease in non-interest income, primarily due to an 88.1% reduction in the gain on sale of loans [199]. - Total noninterest income decreased by $10.3 million, or 51.2%, to $9.8 million for the six months ended June 30, 2023, compared to the same period in 2022 [242]. Interest Income and Expenses - Interest income increased by 21.9% to $15.9 million for the three months ended June 30, 2023, compared to $13.0 million for the same period in 2022 [198]. - Total interest expense increased by 798.3% to $2.2 million for the three months ended June 30, 2023, compared to $0.2 million for the same period in 2022 [198]. - Net interest income for the six months ended June 30, 2023, increased by $0.1 million, or 0.2%, to $25.8 million compared to the same period in 2022 [202]. - The cost of funds on interest-bearing liabilities increased by 288 basis points to 3.65%, with an average balance increase of $61.9 million, or 47.4%, to $192.5 million compared to the prior year [202]. - The cost of funds on interest-bearing liabilities increased by 325 basis points to 4.01% for Q2 2023, with average interest-bearing liabilities rising by $91.5 million, or 71.6% [217]. Loan Performance - Originations of Strategic Program loans held-for-sale decreased by $0.9 billion to $1.2 billion for the three months ended June 30, 2023, compared to the same period in 2022 [196]. - The average balance of loans held for sale decreased by $33.4 million, contributing to the decline in net interest margin [213]. - SBA 7(a) loans increased to $189.0 million, representing 65.0% of total loans held for investment as of June 30, 2023, up from 61.3% [249]. - Strategic Program loans held for investment decreased to $20.7 million, representing 7.1% of total loans held for investment as of June 30, 2023 [259]. - Commercial non-real estate loans increased to $24.9 million, representing 8.5% of total loans held for investment as of June 30, 2023 [257]. Asset and Equity Growth - Total assets increased by $94.8 million to $495.6 million as of June 30, 2023, primarily due to a $53.4 million increase in net loans receivable [214]. - Total deposits rose by $89.5 million, or 36.8%, to $332.5 million as of June 30, 2023 [247]. - Total shareholders' equity increased by $6.99 million, or 5.0%, to $147.4 million as of June 30, 2023 [247]. - Loans receivable, net, increased by $53.4 million, or 23.8%, to $277.7 million as of June 30, 2023 [247]. Tax and Regulatory Matters - The effective income tax rate for the six months ended June 30, 2023 was 26.1%, compared to 25.1% for the same period in 2022 [180]. - The Company plans to acquire an additional 10% of BFG's membership interests in exchange for 372,132 shares of its stock, subject to regulatory approval [188]. Risks and Challenges - The company faces risks related to potential losses from loan defaults and nonperformance on loans [282]. - The adequacy of the company's allowance for credit losses (ACL) is a critical factor for financial performance [273]. - The company is subject to increased competition in the financial services industry, particularly from regional and national institutions [281]. - The company is exposed to interest rate risk, which affects its interest-earning assets and liabilities [282]. - The company is reliant on third-party service providers for core systems support and other processing services [281]. Non-Interest Income - Non-interest income decreased by 37.3% to $5.3 million for the three months ended June 30, 2023, compared to $8.4 million for the same period in 2022 [198]. - Total noninterest expense decreased by $1.0 million, or 9.3%, to $10.0 million for the three months ended June 30, 2023, compared to the same period in 2022 [244]. - Total noninterest expense decreased by $1.0 million, or 9.3%, to $10.0 million in Q2 2023, attributed to a recovery on the SBA servicing asset and a reduction in salaries and employee benefits [227].

Financial Data and Key Metrics Changes - For Q2 2023, the company generated revenue of $21.2 million, with net income of $4.6 million, translating to diluted earnings per share of $0.35 and a return on average equity of 12.8% [11][28] - Net interest income grew 13% to $13.7 million compared to $12.1 million in the previous quarter, and increased 7.1% from $12.8 million in the same quarter last year [21][38] - The company's tangible book value per common share increased to $11.59 from $11.26 in the prior quarter [31] Business Line Data and Key Metrics Changes - Loan originations totaled $1.2 billion for the quarter, up from $0.9 billion in the previous quarter but down from $2.1 billion in the same quarter last year [60] - Non-interest income was $5.3 million, an increase from $4.5 million in the first quarter but a decrease from $8.4 million in the same quarter last year [39] - The efficiency ratio was 52.7%, slightly up from 52.5% in the previous quarter and 52% in the same quarter last year [32][63] Market Data and Key Metrics Changes - Average interest-bearing deposits increased to $219.1 million from $165.2 million in the first quarter and $127.2 million in the same quarter last year [20] - The net charge-off rate decreased to 3.4% compared to 4.5% in the first quarter and the same quarter last year [36] Company Strategy and Development Direction - The company continues to focus on diversifying revenue streams and investing in its team and infrastructure, including expanding its Banking-as-a-Service product line [14][35] - A definitive agreement was made to acquire an additional 10% of BFG's membership interests, which is part of the long-term strategy to increase equity ownership [15] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook for loan originations for the remainder of 2023 due to tight capital markets and interest rate pressures [30] - The company remains committed to prudent credit underwriting and long-term growth strategies despite current macroeconomic challenges [34] Other Important Information - The company bought back 269,690 shares for approximately $2.2 million during the quarter [40] - The effective tax rate for the second quarter was 26.1%, consistent with the previous quarter [40] Q&A Session Summary Question: What drove the step down in SBA loan servicing fees this quarter? - The decrease was attributed to a couple of SBA loans paying off, affecting accruals and deferrals [77] Question: What is the outlook for operating expenses in the next couple of quarters? - The increase in compensation was due to higher performance bonuses, and the company plans to maintain consistent relationships [79] Question: How many shares were bought back this quarter and what is the remaining authorization? - The company purchased 269,690 shares for about $2.2 million, with plans to remain active in buybacks [80][81]

Financial Performance - Net income for Q1 2023 was $3.9 million, a decrease of $5.6 million or 59.1% from $9.4 million in Q1 2022, primarily due to a $7.2 million or 61.3% drop in non-interest income[41]. - Net interest income decreased by $0.9 million, or 6.6%, to $12.1 million for Q1 2023 compared to Q1 2022, attributed to decreases in loans held for sale balances and increased rates on certificates of deposit[33]. - Non-interest income decreased by $7.2 million or 61.3% to $4.5 million, driven by a $4.9 million or 96.3% reduction in gain on sale of loans and a $2.9 million or 44.4% decline in strategic program fees[51]. - The return on average equity was 11.1% for Q1 2023, down from 31.4% in Q1 2022, while the return on average assets was 3.8%, down from 9.4%[39]. - The effective income tax rate for the three months ended March 31, 2023, was 26.1%, compared to 25.4% for the same period in 2022[131]. Asset and Liability Management - Total assets increased by $41.5 million to $442.3 million as of March 31, 2023, driven by a $36.0 million increase in net loans receivable and a $5.0 million increase in interest-bearing deposits[29]. - Total liabilities increased to $297.9 million, a 14.5% increase from $260.3 million as of December 31, 2022, primarily due to an increase in brokered deposits for Strategic Programs[117]. - Total deposits increased to $283.2 million as of March 31, 2023, from $243.0 million as of December 31, 2022, representing a growth of $40.2 million, or 16.5%[122]. - The average balance of interest-bearing liabilities increased by $31.9 million, or 23.9%, to $165.5 million for Q1 2023 compared to the prior year period[33]. - Interest-bearing deposits in other banks rose to $105.2 million at March 31, 2023, up $5.0 million or 5.0% from $100.2 million at December 31, 2022[109]. Loan Portfolio - The total loan portfolio reached $297.7 million as of March 31, 2023, compared to $260.2 million as of December 31, 2022[66]. - The company reported a significant increase in SBA 7(a) loans, totaling $178.7 million as of March 31, 2023, up from $145.2 million at the end of 2022, representing 60.0% of total loans[57]. - Total residential real estate loans decreased to $31.0 million (10.4% of total loans) as of March 31, 2023, from $37.8 million (14.5%) as of December 31, 2022[60]. - Strategic Program loans totaled $46.8 million (15.7% of total loans) as of March 31, 2023, down from $47.8 million (18.4%) as of December 31, 2022[61]. - Commercial real estate loans increased to $17.0 million (5.7% of total loans) as of March 31, 2023, compared to $12.1 million (4.7%) as of December 31, 2022[62]. Credit Quality and Risk Management - The provision for credit losses was $2.7 million for Q1 2023, slightly down from $2.9 million in Q1 2022, reflecting a decrease in strategic program loans held for investment[47]. - The allowance for loan losses (ALL) related to Strategic Programs constituted 55.9% of the total ALL as of December 31, 2022, while comprising 10.3% of total loans[101]. - The ratio of net charge-offs to average loans outstanding was 1.1% for the three months ended March 31, 2023, compared to 1.4% for the same period in 2022[108]. - The ACL to total loans ratio was 4.4% as of March 31, 2023, with nonaccrual loans to total loans at 0.3%[105]. - The company emphasizes proactive identification and resolution of problem loans to maintain asset quality[90]. Capital and Equity - Shareholders' equity increased by $3.9 million to $144.4 million at March 31, 2023, primarily due to net income recognized of $3.9 million[38]. - The leverage ratio under the Community Bank Leverage Ratio framework was 24.0% as of March 31, 2023, compared to 25.1% as of December 31, 2022, well above the 9.0% requirement[145]. - The ending balance of the allowance for credit losses (ACL) was $12,034 thousand as of March 31, 2023, with a provision for loan losses of $2,668 thousand during the period[99]. - The company aims to maintain adequate capital to support anticipated asset growth and ensure compliance with regulatory capital guidelines[40]. - Total contractual obligations amount to $269,761,000, with $225,634,000 due in less than one year[153]. Strategic Initiatives - The company launched an HSA deposit product in 2022 and plans to leverage online and mobile banking to enhance customer service without expanding physical branches[73]. - The company utilizes brokered deposits and a rate listing service to attract deposits, maintaining competitive rates to draw in funds[127]. - Originations of Strategic Program loans held-for-sale decreased by $1.6 billion to $0.9 billion for the three months ended March 31, 2023, due mainly to market deceleration[138]. - The company maintains a disciplined lending approach and monitors delinquency levels to manage credit risk effectively[91]. - The company had $0.7 million in nonperforming assets as of March 31, 2023, compared to no nonperforming assets at December 31, 2022[89].