FinWise Bancorp Reports First Quarter 2025 Results

Core Insights - FinWise Bancorp reported solid financial performance for the first quarter of 2025, with loan originations of $1.3 billion and net income of$3.2 million, reflecting a resilient business model despite macroeconomic uncertainties [2][4][6]. Financial Performance - Loan originations totaled $1.3 billion, consistent with the previous quarter and up from$1.1 billion year-over-year [6][8]. - Net income for the quarter 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 quarter last year [6][16]. - Diluted earnings per share (EPS) were$0.23, compared to $0.20 in the previous quarter and$0.25 in the same quarter last year [6][16]. - Net interest income decreased to $14.3 million from$15.5 million in the prior quarter, but increased from $14.0 million year-over-year [6][7]. Asset Quality - Nonperforming loans decreased to$29.9 million, or 6.1% of total loans held-for-investment, down from $36.5 million (7.8$14.2 million, representing 2.9% of total loans held-for-investment [28]. Balance Sheet - Total assets increased to $804.1 million, up from$746.0 million in the previous quarter and $610.8 million year-over-year [17][40]. - Total deposits rose to$605.8 million, driven by increases in brokered time certificates of deposits and demand deposits [20]. Efficiency and Ratios - The efficiency ratio was 64.8%, slightly up from 64.2% in the previous quarter and 61.0% year-over-year [14]. - The leverage ratio was 18.8%, down from 20.6% in the previous quarter, but still above the well-capitalized requirement of 9.0% [22]. Non-Interest Income - Total non-interest income for the quarter was $7.8 million, an increase from$5.6 million in the prior year, driven by higher strategic program fees and other miscellaneous income [11][12]. Strategic Initiatives - The company announced a new strategic program agreement to provide lending and credit enhancement products, aiming to enhance its business model and shareholder value [4].