FinWise Bancorp(FINW) - 2025 Q1 - Quarterly Results

Financial Performance - Net income for the first quarter of 2025 was $3.2 million, an increase from $2.8 million in the prior quarter but a slight decrease from $3.3 million in the same period last year[18]. - Diluted earnings per share (EPS) were $0.23 for the first quarter of 2025, compared to $0.20 in the prior quarter and $0.25 in the same period last year[5]. - Net income for the three months ended March 31, 2025, was $3,189 thousand, compared to $2,794 thousand for the previous quarter, reflecting an increase of 14.1%[45]. - Earnings per share (basic) for the three months ended March 31, 2025, was $0.24, up from $0.21 in the previous quarter, an increase of 14.3%[45]. Loan and Asset Management - Loan originations totaled $1.3 billion for the first quarter of 2025, consistent with the prior quarter and up from $1.1 billion in the same period last year[5]. - Total gross loans held-for-investment (HFI) as of March 31, 2025, increased by $27.0 million (5.8%) from December 31, 2024, and by $101.3 million (25.9%) from March 31, 2024, driven by growth in commercial real estate - owner occupied, commercial leases, and residential real estate loan portfolios[21]. - Loans held-for-investment reached $485.78 billion, generating $12.89 billion in interest income, resulting in a yield of 10.76%[50]. Income and Expenses - Net interest income was $14.3 million for the first quarter of 2025, down from $15.5 million in the prior quarter but up from $14.0 million in the same period last year[8]. - Total interest income decreased to $18,536 thousand for the three months ended March 31, 2025, down from $19,362 thousand in the previous quarter, a decline of 4.3%[45]. - Non-interest expense increased to $14,318 thousand for the three months ended March 31, 2025, compared to $13,563 thousand in the previous quarter, an increase of 5.6%[45]. - Total non-interest income was $7.81 billion, up from $5.60 billion in the previous quarter, reflecting a significant increase in revenue[49]. Asset and Equity Growth - Total assets increased to $804.1 million as of March 31, 2025, up from $746.0 million at the end of the prior quarter and $610.8 million a year ago[19]. - Total shareholders' equity as of March 31, 2025, rose to $177.4 million, an increase of $3.6 million (2.1%) from December 31, 2024, and an increase of $14.9 million (9.2%) from March 31, 2024, mainly due to net income and stock-based compensation[24]. - The company's total liabilities increased to $626,768 thousand as of March 31, 2025, from $572,256 thousand at December 31, 2024, an increase of 9.5%[43]. Credit Quality and Losses - Nonperforming loan balances decreased to $29.9 million as of March 31, 2025, down from $36.5 million in the prior quarter[5]. - The provision for credit losses was $3.3 million for the first quarter of 2025, down from $3.9 million in the prior quarter[11]. - The allowance for credit losses increased to $14.2 million as of March 31, 2025, from $13.2 million as of December 31, 2024, and $12.6 million as of March 31, 2024[30]. - Nonperforming loans as of March 31, 2025, totaled $29.9 million, or 6.1% of total loans HFI, a decrease from $36.5 million (7.8%) as of December 31, 2024, and an increase from $26.0 million (6.6%) as of March 31, 2024[27]. Capital Ratios - The leverage ratio as of March 31, 2025, was 18.8%, down from 20.6% as of December 31, 2024, and March 31, 2024, but still significantly above the well-capitalized requirement of 9.0%[25]. - The allowance for credit losses to total loans HFI was 2.9% as of March 31, 2025, compared to 2.8% as of December 31, 2024, and 3.2% as of March 31, 2024[30]. Strategic Initiatives - The Company is expanding its business model by incorporating Payments (MoneyRailsTM) and BIN Sponsorship offerings, alongside its existing Strategic Program Lending business[34]. - The company anticipates continued growth in interest-earning assets and improvements in net interest margin in the upcoming quarters[49].