FinWise Bancorp Reports Fourth Quarter and Full Year 2024 Results

Core Insights - FinWise Bancorp reported loan originations of $5.0 billion for 2024, with$ 1.3 billion in the fourth quarter [1] - The company achieved a net income of $12.7 million for 2024, including$ 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] Financial Performance - Loan originations for Q4 2024 totaled $1.3 billion, a decrease from$ 1.4 billion in Q3 2024 and an increase from $1.2 billion in Q4 2023 [5][9] - Net interest income for Q4 2024 was$ 15.5 million, up from $14.8 million in Q3 2024 and$ 14.4 million in Q4 2023 [5][8] - The efficiency ratio improved to 64.2% in Q4 2024 from 67.5% in Q3 2024, but was higher than 56.0% in Q4 2023 [5][15] Asset Quality - Nonperforming loans increased to $36.4 million, or 7.8% of total loans held for investment (HFI), compared to$ 30.6 million (7.1%) in Q3 2024 and $27.1 million (7.3%) in Q4 2023 [27][28] - The allowance for credit losses to total loans HFI was 2.8% as of December 31, 2024, down from 2.9% in Q3 2024 and 3.5% in Q4 2023 [28][31] Balance Sheet Highlights - Total assets increased to$ 746.0 million as of December 31, 2024, up from $683.0 million in Q3 2024 and$ 586.2 million in Q4 2023 [18] - Total deposits rose to $544.9 million as of December 31, 2024, compared to$ 488.7 million in Q3 2024 and $404.8 million in Q4 2023 [22][23] Strategic Initiatives - The company announced four new lending programs, including credit enhancement, payments, and credit card offerings, aimed at diversifying revenue sources [3] - FinWise is focused on generating positive operating leverage and anticipates continued stability in loan originations from existing programs [3]