FinWise Bancorp(US:FINW)2024-04-29 20:18Financial Performance - Net income for the first quarter of 2024 was $3.3 million, a decrease from $4.2 million in the fourth quarter of 2023 and $3.9 million in the first quarter of 2023[7]. - Diluted earnings per share (EPS) were $0.25, compared to $0.32 in the fourth quarter of 2023 and $0.29 in the first quarter of 2023[4]. - Net income for the three months ended March 31, 2024, was $3,315,000, a decrease of 20.3% from $4,156,000 in the previous quarter[46]. - Earnings per share (basic) for the three months ended March 31, 2024, was $0.26, compared to $0.33 in the previous quarter, a decline of 21.2%[46]. Loan and Deposit Activity - Loan originations totaled $1.1 billion, compared to $1.2 billion in the prior quarter and $0.9 billion in the prior year period[10]. - Total deposits rose to $424.1 million as of March 31, 2024, compared to $404.8 million as of December 31, 2023, and $283.2 million as of March 31, 2023[24]. - Total deposits increased to $424,096,000 as of March 31, 2024, up from $404,833,000 at December 31, 2023, reflecting a growth of 4.0%[45]. - Loans originated amounted to $1,091,479 thousand for the three months ended March 31, 2024, compared to $1,177,704 thousand for December 31, 2023, indicating a decline of 7.3%[49]. Income and Expense Analysis - Net interest income was $14.0 million, down from $14.4 million in the fourth quarter of 2023 and up from $12.1 million in the first quarter of 2023[8]. - Non-interest income was $5.5 million, down from $6.0 million in the prior quarter and up from $4.5 million in the prior year period[13]. - Non-interest expense increased to $11,807,000 for the three months ended March 31, 2024, compared to $11,381,000 in the previous quarter, an increase of 3.7%[46]. - Non-interest income for the three months ended March 31, 2024, was $5,464 thousand, down from $6,035 thousand for December 31, 2023, a decrease of 9.5%[49]. Asset and Equity Growth - Total assets increased to $610.8 million as of March 31, 2024, from $586.2 million as of December 31, 2023, and $442.3 million as of March 31, 2023[18]. - Total assets increased to $610,833 thousand as of March 31, 2024, from $586,221 thousand as of December 31, 2023, marking a growth of 4.0%[49]. - Total shareholders' equity increased by $7.4 million to $162.5 million from $155.1 million at December 31, 2023, and by $18.1 million from $144.4 million at March 31, 2023[25]. Credit Quality - The provision for credit losses was stable at $3.2 million, consistent with the prior quarter and up from $2.7 million in the prior year period[12]. - Non-performing loans decreased to $26.0 million as of March 31, 2024, from $27.1 million as of December 31, 2023, and increased from $1.8 million as of March 31, 2023[4]. - The allowance for credit losses to total loans held for investment was 3.2% as of March 31, 2024, compared to 3.5% as of December 31, 2023, and 4.4% as of March 31, 2023[29]. - Net charge-offs for the first quarter of 2024 were $3.4 million, consistent with the prior quarter and up from $2.9 million for the same period last year[30]. Operational Efficiency - Efficiency ratio increased to 60.6%, compared to 55.8% in the prior quarter and 52.5% in the prior year period[16]. - The efficiency ratio increased to 60.6% for the three months ended March 31, 2024, compared to 55.8% for December 31, 2023, indicating a decline in operational efficiency[51]. Tax and Capital Ratios - The effective tax rate was 26.5% for the first quarter of 2024, compared to 28.5% in the prior quarter and 26.1% in the prior year period[17]. - The leverage ratio was 20.6% as of March 31, 2024, slightly down from 20.7% as of December 31, 2023, remaining above the well-capitalized requirement of 9.0%[26]. Shareholder Actions - The Company repurchased a total of 17,697 shares for $0.2 million under its share repurchase program as of March 31, 2024[27]. - The Company increased its ownership in BFG to 20% after acquiring an additional 10% of its nonvoting ownership interests on February 5, 2024[28].