FinWise Bancorp Reports Fourth Quarter and Full Year 2025 Results

Core Insights - FinWise Bancorp reported a strong performance in 2025, with net income growing by 26% compared to 2024, and loan originations reaching $6.1 billion, reflecting a 22% year-over-year increase [3][4][19]. Financial Performance - Loan originations for the fourth quarter of 2025 totaled $1.6 billion, exceeding initial guidance of $1.4 billion, while full-year originations reached $6.1 billion [3][4]. - Net income for the fourth quarter was $3.9 million, compared to $4.9 million in the prior quarter and $2.8 million in the same quarter of the previous year [5][19]. - Diluted earnings per share (EPS) for the fourth quarter were $0.27, down from $0.34 in the prior quarter but up from $0.20 year-over-year [5][19]. - The efficiency ratio improved to 50.5% in the fourth quarter, compared to 47.6% in the prior quarter and 64.2% in the same quarter last year [5][17]. Loan Portfolio and Asset Quality - Total loans held-for-investment increased to $595.3 million as of December 31, 2025, up from $567.8 million in the prior quarter and $465.2 million year-over-year [20][21]. - Nonperforming loans were recorded at $43.7 million, or 7.3% of total loans held-for-investment, showing a slight increase from $42.8 million in the prior quarter [28][30]. - The allowance for credit losses increased to $36.8 million, reflecting a higher provision for credit losses due to growth in the credit enhanced loan portfolio [31][32]. Non-Interest Income and Expenses - Non-interest income for the fourth quarter was $22.3 million, an increase from $18.1 million in the prior quarter, primarily driven by higher credit enhancement income [13][14]. - Total non-interest expenses rose to $23.7 million, up from $17.4 million in the prior quarter, largely due to increased credit enhancement servicing expenses [15][16]. Balance Sheet and Capital Ratios - Total assets reached $977.1 million as of December 31, 2025, up from $899.9 million in the prior quarter, driven by growth in loans and deposits [20][41]. - The leverage ratio was reported at 16.9%, remaining well above the regulatory well-capitalized requirement of 9.0% [26]. Shareholder Equity and Repurchase Program - Total shareholders' equity increased to $193.2 million as of December 31, 2025, up from $187.8 million in the prior quarter, primarily due to net income generated during the period [25]. - The company has repurchased a total of 44,608 shares for $0.5 million since the inception of its share repurchase program in March 2024, with no shares repurchased in the fourth quarter of 2025 [27].