Financial Performance - Loan originations for Q2 2024 were $1.2 billion, consistent with Q2 2023 and up from $1.1 billion in Q1 2024[3]. - Net interest income increased to $14.6 million in Q2 2024, compared to $14.0 million in Q1 2024 and $13.7 million in Q2 2023[3]. - Net income for Q2 2024 was $3.2 million, a decrease from $3.3 million in Q1 2024 and $4.6 million in Q2 2023[3]. - Diluted earnings per share (EPS) were $0.24 for Q2 2024, down from $0.25 in Q1 2024 and $0.35 in Q2 2023[3]. - Non-interest income for the second quarter of 2024 was $4.8 million, down from $5.5 million in the prior quarter and $5.3 million in the prior year period[32]. - The company's return on average assets was 2.1% for the second quarter of 2024, down from 2.2% in the prior quarter and 3.9% in the prior year period[26]. - Net income for the three months ended June 30, 2024, was $3,180 million, down from $4,638 million in the same period of 2023[70]. - Basic earnings per share decreased to $0.25 from $0.36 year-over-year[70]. - Earnings per share (diluted) decreased to $0.24 from $0.35, a decline of 31.4% year-over-year[72]. Asset and Deposit Growth - Total assets increased to $617.8 million as of June 30, 2024, up from $610.8 million as of March 31, 2024, and $495.6 million as of June 30, 2023[36]. - Total deposits rose to $429.2 million as of June 30, 2024, up from $424.1 million in Q1 2024 and $332.5 million in Q2 2023[15]. - Total assets increased to $617,820,000 as of June 30, 2024, compared to $610,833,000 as of March 31, 2024, and $495,625,000 as of June 30, 2023, reflecting a year-over-year growth of 24.6%[51]. - Total deposits reached $429,195,000 as of June 30, 2024, compared to $424,096,000 as of March 31, 2024, and $332,530,000 as of June 30, 2023, marking a year-over-year growth of 29.1%[51]. Loan and Credit Quality - Nonperforming loans increased to $27.9 million as of June 30, 2024, from $26.0 million in Q1 2024 and $1.9 million in Q2 2023[3]. - Nonperforming loans were $27.9 million, or 6.5% of total loans receivable, as of June 30, 2024, compared to $26.0 million or 6.6% as of March 31, 2024[42]. - The allowance for credit losses was $13.1 million as of June 30, 2024, compared to $12.6 million in Q1 2024 and $12.3 million in Q2 2023[20]. - The provision for credit losses was $2.4 million for the second quarter of 2024, a decrease from $3.2 million in the prior quarter and $2.7 million in the prior year period[31]. - The company reported net charge-offs of $1,898,000 for the quarter ended June 30, 2024, compared to $3,401,000 for the quarter ended March 31, 2024, and $2,388,000 for the quarter ended June 30, 2023[60]. Operational Efficiency - Non-interest expense for Q2 2024 was $12.9 million, compared to $11.8 million in Q1 2024 and $10.0 million in Q2 2023[11]. - The efficiency ratio increased to 66.3% in Q2 2024, up from 60.6% in Q1 2024 and 52.7% in Q2 2023[3]. - The efficiency ratio for the quarter ended June 30, 2024, was 66.3%, compared to 60.6% for the quarter ended March 31, 2024, and 52.7% for the quarter ended June 30, 2023, indicating a decline in operational efficiency[56]. - Total non-interest expense rose to $12,890 million, reflecting a 28.9% increase from $9,999 million in the same quarter last year[70]. Future Growth Strategies - FinWise is on track to launch its Payment Hub platform later this year, which is expected to enhance future growth opportunities[25]. - Future growth strategies include launching new products and services while managing credit risk effectively[48].

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]

Core Insights - FinWise Bancorp has launched a new strategic lending program in partnership with Plannery, Inc., aimed at providing financial wellness solutions to healthcare employees [1][2][4] Company Overview - FinWise Bancorp is the parent company of FinWise Bank, focusing on comprehensive banking and payment solutions for fintech brands [5] - The company is diversifying its business model in 2024 by incorporating Payments Hub and BIN Sponsorship offerings [5] Product Details - The new loan product allows hospital systems to offer employees a way to consolidate and reduce interest rates on credit card and personal loans [2][3] - It features a payroll-linked payment structure designed to minimize missed payments and late fees, thereby enhancing financial stability for healthcare professionals [2] Strategic Partnership - The partnership with Plannery aims to combat financial stress among healthcare professionals, which is a significant factor in clinical burnout, and to support employee recruitment and retention [2][4] - Plannery will utilize FinWise's services to originate debt consolidation loans specifically for healthcare professionals, increasing access to affordable financing [4] Market Positioning - FinWise's existing Strategic Program Lending business supports deposit, lending, and payment programs for leading fintech brands, positioning the company for disciplined balance sheet growth [6] - The company emphasizes compliance oversight and risk management, ensuring regulatory compliance for fintech partners [6] About Plannery - Plannery is a financial wellness platform dedicated to healthcare professionals, aiming to assist them in eliminating debt and building wealth [7] - The platform partners with healthcare organizations to offer financial products as employee benefits, enhancing workforce recruitment and retention [7]

Financial Performance - Net income for Q1 2024 decreased by $0.6 million to $3.3 million, a decline of 14.1% compared to Q1 2023, primarily due to a $2.3 million increase in salaries and employee benefits [148] - Net interest income increased by $1.9 million, or 15.7%, to $14.0 million for Q1 2024, driven by growth in the loans held for investment portfolio [155] - The net interest margin decreased to 10.12% for Q1 2024 from 12.51% in Q1 2023, primarily due to a decline in yields on interest-earning assets [149] - Non-interest income rose by $0.9 million, or 20.7%, to $5.5 million for Q1 2024, mainly from higher fees and gains on loan sales [154] - Total interest income for the three months ended March 31, 2024, was $4.244 million, a decrease of $988,000 compared to the same period in 2023, primarily due to a decrease in loans held for investment [160] Asset and Loan Growth - Total assets rose by $24.6 million to $610.8 million as of March 31, 2024, mainly due to an $18.5 million increase in net loans receivable [150] - Originations increased by $0.2 billion to $1.1 billion for Q1 2024, attributed to improved market conditions [151] - Average interest-earning assets increased by $164.2 million, or 41.8%, to $556.8 million for Q1 2024 [155] - Total loans held for investment increased to $390.9 million as of March 31, 2024, from $372.2 million as of December 31, 2023 [177] - Loans receivable, net, increased by $18.541 million or 5.2% to $377.101 million as of March 31, 2024, compared to $358.560 million at the end of 2023 [168] Deposits and Liabilities - Total deposits grew by $19.263 million or 4.8% to $424.096 million as of March 31, 2024, from $404.833 million at the end of 2023 [167] - Noninterest-bearing demand deposits rose to $107,076,000, representing 25.2% of total deposits as of March 31, 2024, compared to $95,486,000 or 23.6% as of December 31, 2023 [220] - Total liabilities increased by 4.0% to $448.4 million as of March 31, 2024, from $431.2 million as of December 31, 2023, mainly due to an increase in noninterest-bearing deposits [218] Credit Quality and Losses - Provision for credit losses increased to $3.2 million for the three months ended March 31, 2024, compared to $2.7 million in the same period of 2023, attributed to adjustments related to nonperforming assets [162] - The company reported a total of $26.0 million in nonperforming assets as of March 31, 2024, down from $27.1 million on December 31, 2023, indicating a decrease in nonperforming assets [188] - The allowance for credit losses (ACL) decreased to $12,632,000 as of March 31, 2024, from $12,888,000 as of December 31, 2023, reflecting a reduction of 2.0% [201] - The average net charge-offs for Strategic Program loans was 56.9% for the three months ended March 31, 2024, compared to 47.1% for the same period in 2023 [210] Strategic Initiatives - The company continues to focus on expanding its loan origination through strategic relationships and enhancing its analytics platform, FinView™ [145] - The company has diversified its loan portfolio focusing on industries such as e-commerce and healthcare services to withstand economic shifts [177] - The company intends to leverage online and mobile banking to meet customer needs without expanding its physical branch network [226] Equity and Ratios - Shareholders' equity increased by $7.4 million to $162.5 million at March 31, 2024, compared to $155.1 million at December 31, 2023 [230] - The return on average equity was 8.4% for the three months ended March 31, 2024, down from 11.1% for the same period in 2023 [231] - The leverage ratio under the Community Bank Leverage Ratio framework was 20.6% as of March 31, 2024, well above the required 9.0% [236]

FinWise Bancorp (FINW) came out with quarterly earnings of $0.25 per share, beating the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 25%. A quarter ago, it was expected that this company would post earnings of $0.30 per share when it actually produced earnings of $0.32, delivering a surprise of 6.67%.Over the last four quarters, the company has ...

Financial Performance - Net income for the first quarter of 2024 was $3.3 million, a decrease from $4.2 million in the fourth quarter of 2023 and $3.9 million in the first quarter of 2023[7]. - Diluted earnings per share (EPS) were $0.25, compared to $0.32 in the fourth quarter of 2023 and $0.29 in the first quarter of 2023[4]. - Net income for the three months ended March 31, 2024, was $3,315,000, a decrease of 20.3% from $4,156,000 in the previous quarter[46]. - Earnings per share (basic) for the three months ended March 31, 2024, was $0.26, compared to $0.33 in the previous quarter, a decline of 21.2%[46]. Loan and Deposit Activity - Loan originations totaled $1.1 billion, compared to $1.2 billion in the prior quarter and $0.9 billion in the prior year period[10]. - Total deposits rose to $424.1 million as of March 31, 2024, compared to $404.8 million as of December 31, 2023, and $283.2 million as of March 31, 2023[24]. - Total deposits increased to $424,096,000 as of March 31, 2024, up from $404,833,000 at December 31, 2023, reflecting a growth of 4.0%[45]. - Loans originated amounted to $1,091,479 thousand for the three months ended March 31, 2024, compared to $1,177,704 thousand for December 31, 2023, indicating a decline of 7.3%[49]. Income and Expense Analysis - Net interest income was $14.0 million, down from $14.4 million in the fourth quarter of 2023 and up from $12.1 million in the first quarter of 2023[8]. - Non-interest income was $5.5 million, down from $6.0 million in the prior quarter and up from $4.5 million in the prior year period[13]. - Non-interest expense increased to $11,807,000 for the three months ended March 31, 2024, compared to $11,381,000 in the previous quarter, an increase of 3.7%[46]. - Non-interest income for the three months ended March 31, 2024, was $5,464 thousand, down from $6,035 thousand for December 31, 2023, a decrease of 9.5%[49]. Asset and Equity Growth - Total assets increased to $610.8 million as of March 31, 2024, from $586.2 million as of December 31, 2023, and $442.3 million as of March 31, 2023[18]. - Total assets increased to $610,833 thousand as of March 31, 2024, from $586,221 thousand as of December 31, 2023, marking a growth of 4.0%[49]. - Total shareholders' equity increased by $7.4 million to $162.5 million from $155.1 million at December 31, 2023, and by $18.1 million from $144.4 million at March 31, 2023[25]. Credit Quality - The provision for credit losses was stable at $3.2 million, consistent with the prior quarter and up from $2.7 million in the prior year period[12]. - Non-performing loans decreased to $26.0 million as of March 31, 2024, from $27.1 million as of December 31, 2023, and increased from $1.8 million as of March 31, 2023[4]. - The allowance for credit losses to total loans held for investment was 3.2% as of March 31, 2024, compared to 3.5% as of December 31, 2023, and 4.4% as of March 31, 2023[29]. - Net charge-offs for the first quarter of 2024 were $3.4 million, consistent with the prior quarter and up from $2.9 million for the same period last year[30]. Operational Efficiency - Efficiency ratio increased to 60.6%, compared to 55.8% in the prior quarter and 52.5% in the prior year period[16]. - The efficiency ratio increased to 60.6% for the three months ended March 31, 2024, compared to 55.8% for December 31, 2023, indicating a decline in operational efficiency[51]. Tax and Capital Ratios - The effective tax rate was 26.5% for the first quarter of 2024, compared to 28.5% in the prior quarter and 26.1% in the prior year period[17]. - The leverage ratio was 20.6% as of March 31, 2024, slightly down from 20.7% as of December 31, 2023, remaining above the well-capitalized requirement of 9.0%[26]. Shareholder Actions - The Company repurchased a total of 17,697 shares for $0.2 million under its share repurchase program as of March 31, 2024[27]. - The Company increased its ownership in BFG to 20% after acquiring an additional 10% of its nonvoting ownership interests on February 5, 2024[28].

Wall Street expects a year-over-year decline in earnings on higher revenues when FinWise Bancorp (FINW) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on April 29, 2024, might help the stock move higher if these key numbers are better than ex ...

MURRAY, Utah, April 04, 2024 (GLOBE NEWSWIRE) -- FinWise Bancorp (NASDAQ:FINW) ("FinWise" or the "Company"), the parent company of FinWise Bank, announced today that it will report its first quarter 2024 results and host a webcast and conference call after the market close on Monday, April 29, 2024. Webcast Information The webcast will be available on the Company's website at FinWise Earnings Call Live Webcast and a replay of the call will be available at Investor Relations | FinWise Bancorp (gcs-web.com) f ...

Financial Performance - As of December 31, 2023, total assets increased to $586,221,000 from $400,780,000 in 2022, representing a growth of approximately 46.3%[613] - Loans receivable net of allowance for credit losses rose to $358,560,000 in 2023, up from $224,217,000 in 2022, indicating an increase of about 60%[613] - Total deposits surged to $404,833,000 in 2023, compared to $242,998,000 in 2022, reflecting a growth of approximately 66.5%[613] - Shareholders' equity increased to $155,056,000 in 2023 from $140,459,000 in 2022, marking an increase of about 10.4%[613] - Net income for 2023 was $17,460 thousand, compared to $25,115 thousand in 2022, reflecting a decrease of 30.5%[618] - Basic earnings per share fell to $1.38 in 2023 from $1.96 in 2022, a decline of 29.6%[618] - Total interest income increased to $64,534 thousand in 2023 from $52,329 thousand in 2022, representing a growth of 23.3%[618] - Net interest income after provision for loan losses rose to $42,921 thousand in 2023, up from $37,376 thousand in 2022, an increase of 14.5%[618] - Total non-interest income decreased to $21,080 thousand in 2023, down from $37,411 thousand in 2022, a decline of 43.7%[618] - Total non-interest expense increased to $40,188 thousand in 2023, compared to $38,756 thousand in 2022, an increase of 3.7%[618] Regulatory and Compliance Risks - The company is subject to regulatory compliance costs that may reduce net income and restrict growth[292] - The company faces risks related to noncompliance with the Bank Secrecy Act and anti-money laundering regulations[298] - Legislative and regulatory actions may increase the company's costs and impact its business, governance structure, financial condition, or results of operations[325] - The company is subject to more stringent capital requirements due to the Dodd-Frank Act and related rulemaking[328] - Regulatory scrutiny regarding compliance with consumer protection laws could lead to sanctions, impacting the company's reputation and financial condition[364] - The company is subject to various privacy and data protection laws, which could increase compliance costs and affect business operations[363] - The evolving regulatory framework for Strategic Programs may negatively affect the company's business due to potential new laws and regulations[375] Strategic Programs and Growth - Approximately $25.9 million, or 30.3% of total revenues for the year ended December 31, 2023, were generated from Strategic Programs with annual interest rates above 36%[350] - The company expects to acquire deposit accounts through Fintech Banking Solutions relationships, which must meet internal and regulatory requirements[287] - The company expects to derive a percentage of its deposits, total assets, and income from deposit accounts generated through its Fintech Banking Solutions relationships[319] - The company plans to explore opportunities for investments or acquisitions in financial institutions and service companies to complement its existing business[354] - The company may not be able to raise the additional capital needed to fund its growth strategy if it continues to grow at its current pace[314] Market and Competitive Environment - The rapid rise in interest rates during 2022 and 2023 has increased volatility and uncertainty in the U.S. banking system, leading to heightened awareness around liquidity and deposit composition[282] - Competition in the Fintech Banking Solutions space may increase costs and reduce revenue growth[288] - The company may face increased costs and reduced net income due to potential loss of deductions under Section 162(m) of the Internal Revenue Code[358] Operational and Management Risks - Negative public opinion and reputational harm could adversely affect the company's business and financial condition[280] - Negative public opinion and reputational harm could adversely affect the company's ability to attract new talent and customers[312] - The company’s management team lacks history in working together on acquisitions, which could pose risks during integration activities[354] - The company relies heavily on information supplied by third parties, and misrepresentation of this information could significantly impact loan funding decisions[310] Financial Position and Accounting - The company has beneficially owned 2,993,075 shares, or approximately 22.8% of the issued and outstanding common stock as of December 31, 2023[389] - The company has adopted a new accounting method for credit losses as per Accounting Standards Update No. 2016-13[607] - The allowance for credit losses (ACL) is deemed adequate, with management indicating potential future additions based on economic conditions and individual credit deterioration[640] - The Company recognizes stock-based compensation expense ratably over the vesting period of stock grants, with the total value established at fair market value at the time of the grant[637] - The Company evaluates impairment of securities quarterly, considering various factors such as collateral nature and credit ratings[644] - The Company accounts for leases under ASU 2016-02, recognizing right-of-use assets and lease liabilities for leases longer than 12 months[662] Miscellaneous Financial Metrics - The company reported a net cash provided by operating activities of $12,265 thousand in 2023, down from $61,153 thousand in 2022, a decrease of 80.0%[625] - Cash and cash equivalents at the end of the period rose to $116,975 thousand in 2023 from $100,567 thousand in 2022, an increase of 16.4%[625] - The Federal Reserve's reserve requirement ratio remains at zero percent as of December 31, 2023, following a reduction effective March 26, 2020[642] - The risk-free interest rate increased to 3.68% in 2023 from 3.10% in 2022[672] - Expected volatility for stock options is 44.2% in 2023, down from a range of 45.8% to 46.7% in 2022[672]