FinWise Bancorp(FINW) - 2024 Q4 - Annual Results

Financial Performance - Net income for 2024 was $12.7 million, including$ 2.8 million for the fourth quarter[1] - Diluted earnings per share (EPS) were $0.93 for 2024, with$ 0.20 for the fourth quarter[1] - Net income for the three months ended December 31, 2024, was $2,793,000, down from$ 3,454,000 in the previous quarter, a decrease of 19.1%[41] - Net income decreased to $12,742 thousand in 2024, down from$ 17,460 thousand in 2023, a decline of 27.0%[44] - Basic earnings per share fell to $0.98 in 2024 from$ 1.38 in 2023, a decrease of 29.0%[44] Loan Originations and Assets - Loan originations totaled $5.0 billion for the full year 2024, with$ 1.3 billion in the fourth quarter[1] - Total assets increased to $746.0 million as of December 31, 2024, up from$ 683.0 million as of September 30, 2024[15] - Total assets increased to $745,976,000 as of December 31, 2024, up from$ 683,031,000 on September 30, 2024, representing a 9.4% growth[39] - The total outstanding balance of loans held for investment with credit enhancement as of December 31, 2024, was approximately $0.9 million[59] Interest Income and Expenses - Total interest income increased to$ 74,352 thousand in 2024 from $64,534 thousand in 2023, representing a growth of 15.5%[44] - Net interest income after provision for credit losses rose to$ 47,339 thousand in 2024, up from $42,921 thousand in 2023, an increase of 10.6%[44] - Interest income from loans increased to$ 18,388,000 for the three months ended December 31, 2024, compared to $17,590,000 in the prior quarter, a rise of 4.5%[41] - Net interest income and net interest margin, after adjusting for credit enhancement expenses, are considered non-GAAP measures that provide insight into the company's financial performance[56] Non-Interest Income and Expenses - Non-interest income totaled$ 22,485 thousand in 2024, compared to $21,456 thousand in 2023, reflecting a growth of 4.8%[44] - Non-interest income totaled$ 5,603,000 for the three months ended December 31, 2024, down from $6,054,000 in the previous quarter, a decline of 7.4%[41] - The total non-interest income for the three months ended December 31, 2024, was$ 5,603 thousand, with credit enhancement income of $25 thousand deducted, resulting in a total non-interest income of$ 5,578 thousand[58] Credit Losses and Nonperforming Loans - The provision for credit losses was $3.9 million for the fourth quarter, compared to$ 2.2 million in the prior quarter[9] - Nonperforming loan balances rose to $36.4 million as of December 31, 2024, compared to$ 30.6 million as of September 30, 2024[3] - Nonperforming loans totaled $36.4 million, or 7.8% of total loans HFI, as of December 31, 2024, compared to$ 30.6 million (7.1%) on September 30, 2024, and $27.1 million (7.3%) on December 31, 2023[23] - The allowance for credit losses to total loans HFI was 2.8% as of December 31, 2024, down from 2.9% at September 30, 2024, and 3.5% at December 31, 2023, reflecting a shift towards lower risk loan portfolios[24] Capital and Equity - Total shareholders' equity increased by$ 3.4 million to $173.7 million from$ 170.4 million at September 30, 2024, and by $18.7 million from$ 155.1 million at December 31, 2023, mainly due to net income and additional capital issued[20] - The leverage ratio as of December 31, 2024, was 20.6%, up from 20.3% at September 30, 2024, and slightly down from 20.7% at December 31, 2023, remaining significantly above the well-capitalized requirement of 9.0%[21] Efficiency and Management - The efficiency ratio improved to 64.2% in the fourth quarter, down from 67.5% in the prior quarter[12] - The net interest margin for 2024 was reported at 10.00%, compared to 11.65% in 2023, showing a decline in profitability from interest-earning assets[48] Strategic Initiatives - The company announced four new lending programs, including two related to credit enhancement, as part of its strategy for growth[3] - The company is expanding its business model by incorporating Payments (MoneyRails) and BIN Sponsorship offerings, alongside its Strategic Program Lending business[31] - The company plans to host a conference call to discuss its financial results for the fourth quarter and year ended December 31, 2024[28] Share Repurchase - The company has repurchased a total of 44,608 shares for $0.5 million since the inception of its share repurchase program in March 2024, with no shares repurchased during the fourth quarter of 2024[22]