FinWise Bancorp(US:FINW)2026-01-29 21:20Financial Performance - Loan originations for 2025 totaled $6.1 billion, representing a 22% year-over-year growth[3] - Net income for 2025 was $16.1 million, a 26% increase compared to 2024[3] - Diluted earnings per share (EPS) for 2025 were $1.13, up from $0.93 in 2024[6] - Net income for Q4 2025 was $3.9 million, down from $4.9 million in Q3 2025 and up from $2.8 million in Q4 2024[23] - Net income rose to $16,091 thousand in 2025 compared to $12,742 thousand in 2024, reflecting a growth of 26.3%[47] - Earnings per share (basic) increased to $1.20 in 2025 from $0.98 in 2024, an increase of 22.4%[47] Loan Originations and Assets - Fourth quarter loan originations were $1.6 billion, exceeding initial guidance of $1.4 billion[3] - Total assets increased to $977.1 million as of December 31, 2025, from $899.9 million as of September 30, 2025, and $746.0 million as of December 31, 2024[24] - Total assets grew to $920,074 thousand in 2025 from $884,833 thousand in 2024, an increase of 4.0%[49] - Loans held-for-investment (HFI) increased by $27.5 million from Q3 2025 and $130.1 million from Q4 2024, totaling $595.3 million as of December 31, 2025[26] Income and Expenses - Net interest income for the fourth quarter was $24.6 million, compared to $18.6 million in the prior quarter[10] - Non-interest income for the fourth quarter increased to $22.3 million, driven by higher credit enhancement income[16] - Total non-interest income surged to $58,483 thousand in 2025, up from $22,485 thousand in 2024, marking a significant increase of 160.5%[47] - Total non-interest expense increased to $70,333 thousand in 2025 from $52,835 thousand in 2024, a rise of 33.2%[47] Credit Losses and Allowances - Provision for credit losses was $17.7 million for the fourth quarter, up from $3.9 million in the prior year[15] - The allowance for credit losses increased to $36.8 million, representing 6.2% of total loans held-for-investment as of December 31, 2025, up from 4.5% in Q3 2025[33] - The allowance for credit losses as of December 31, 2025, was $36,796 thousand, an increase from $25,778 thousand as of September 30, 2025, and $13,176 thousand as of December 31, 2024[62] Efficiency and Ratios - The efficiency ratio for the fourth quarter was 50.5%, an improvement from 64.2% in the prior year[21] - The leverage ratio decreased to 16.9% as of December 31, 2025, from 17.2% in Q3 2025, remaining above the well-capitalized requirement of 9.0%[29] - The net interest margin improved to 11.42% in 2025 from 9.01% in 2024[49] - The efficiency ratio for the three months ended December 31, 2025, was 50.5%, compared to 47.6% in the previous quarter and 64.2% in the same quarter last year[53] Strategic Initiatives - The company is expanding its business model by incorporating Payments (MoneyRails™) and BIN Sponsorship offerings to enhance its service offerings[37] - The company anticipates continued growth in its loan portfolios in 2026, focusing on higher-quality, lower-interest rate loans[26] Shareholder Actions - The company repurchased 44,608 shares for $0.5 million since the inception of the share repurchase program in March 2024, with no shares repurchased in Q4 2025[30]