Core Insights - FinWise Bancorp reported strong financial performance for the second quarter of 2025, with loan originations reaching $1.5 billion, net income of $4.1 million, and diluted earnings per share of $0.29, reflecting solid growth and effective expense management [2][4][6]. Financial Performance - Loan originations totaled $1.5 billion for the quarter, an increase from $1.3 billion in the previous quarter and $1.2 billion year-over-year [6][10]. - Net income was $4.1 million, up from $3.2 million in the prior quarter and the same period last year [6][19]. - Diluted earnings per share were $0.29, compared to $0.23 in the previous quarter and $0.24 a year ago [6][19]. - The efficiency ratio improved to 59.5%, down from 64.8% in the prior quarter and 66.8% year-over-year, indicating better productivity [6][17]. Asset Quality - Nonperforming loans increased to $39.7 million, representing 7.5% of total loans held-for-investment, compared to $29.9 million (6.1%) in the prior quarter and $27.9 million (6.5%) a year ago [29][30]. - The allowance for credit losses was 3.1% of total loans held-for-investment, up from 2.9% in the previous quarter [29][30]. Balance Sheet - Total assets grew to $842.5 million, up from $804.1 million in the prior quarter and $617.8 million year-over-year [20][43]. - Total shareholders' equity increased to $182.0 million, compared to $177.4 million in the previous quarter and $165.8 million a year ago [25][43]. Non-Interest Income and Expenses - Non-interest income for the quarter was $10.3 million, an increase from $7.8 million in the prior quarter and $5.2 million year-over-year, driven by higher Strategic Program fees and gains on loan sales [13][15]. - Total non-interest expenses rose to $14.9 million, compared to $14.3 million in the previous quarter, primarily due to increased salaries and employee benefits [16][19]. Capital Ratios - The leverage ratio was 18.0%, down from 18.8% in the prior quarter, but still above the regulatory well-capitalized requirement of 9.0% [27].