FinWise Bancorp(FINW) - 2024 Q2 - Quarterly Results

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].