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]

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]