FinWise Bancorp Reports First Quarter 2025 Results
FinWise Bancorp reported its Q1 2025 results with loan originations of $1.3 billion and net income of $3.2 million, resulting in diluted earnings per share of $0.23. The company showed resilience despite market uncertainty, with net interest income at $14.3 million.
Key performance metrics include:
- Net interest margin of 8.27%
- Efficiency ratio of 64.8%
- Return on average assets of 1.7%
- Return on average equity of 7.4%
The bank's total assets grew to $804.1 million, up from $746.0 million in December 2024. Notably, nonperforming loan balances decreased to $29.9 million, with $15.1 million guaranteed by the SBA. The company maintained strong capital positions with a tangible book value per share of $13.42 and continues to focus on migrating its loan portfolio to a lower risk profile while maintaining profitable growth.
FinWise Bancorp ha comunicato i risultati del primo trimestre 2025 con un volume di nuovi prestiti pari a 1,3 miliardi di dollari e un utile netto di 3,2 milioni di dollari, corrispondente a un utile diluito per azione di 0,23 dollari. La società ha dimostrato resilienza nonostante l'incertezza del mercato, con un reddito netto da interessi di 14,3 milioni di dollari.
I principali indicatori di performance sono:
- Margine netto di interesse dell'8,27%
- Indice di efficienza del 64,8%
- Rendimento medio delle attività dell'1,7%
- Rendimento medio del capitale proprio del 7,4%
Le attività totali della banca sono cresciute fino a 804,1 milioni di dollari, rispetto ai 746,0 milioni di dollari di dicembre 2024. In particolare, i crediti deteriorati sono diminuiti a 29,9 milioni di dollari, di cui 15,1 milioni garantiti dalla SBA. La società ha mantenuto solide posizioni di capitale con un valore contabile tangibile per azione pari a 13,42 dollari e continua a focalizzarsi sulla migrazione del portafoglio prestiti verso un profilo di rischio più basso, pur mantenendo una crescita redditizia.
FinWise Bancorp presentó sus resultados del primer trimestre de 2025 con originaciones de préstamos por 1.300 millones de dólares y un ingreso neto de 3,2 millones de dólares, lo que resultó en ganancias diluidas por acción de 0,23 dólares. La compañía mostró resistencia a pesar de la incertidumbre del mercado, con un ingreso neto por intereses de 14,3 millones de dólares.
Los principales indicadores de desempeño incluyen:
- Margen neto de interés del 8,27%
- Ratio de eficiencia del 64,8%
- Retorno sobre activos promedio del 1,7%
- Retorno sobre patrimonio promedio del 7,4%
Los activos totales del banco crecieron hasta 804,1 millones de dólares, desde 746,0 millones en diciembre de 2024. Cabe destacar que los saldos de préstamos en mora disminuyeron a 29,9 millones, de los cuales 15,1 millones están garantizados por la SBA. La compañía mantuvo sólidas posiciones de capital con un valor contable tangible por acción de 13,42 dólares y continúa enfocándose en migrar su cartera de préstamos hacia un perfil de menor riesgo mientras mantiene un crecimiento rentable.
FinWise Bancorp는 2025년 1분기 실적을 발표하며 대출 신규 실행액이 13억 달러, 순이익은 320만 달러를 기록해 희석 주당순이익이 0.23달러에 달했습니다. 회사는 시장 불확실성에도 불구하고 견조한 모습을 보였으며, 순이자수익은 1,430만 달러였습니다.
주요 성과 지표는 다음과 같습니다:
- 순이자마진 8.27%
- 효율성 비율 64.8%
- 평균자산수익률 1.7%
- 평균자기자본수익률 7.4%
은행의 총자산은 2024년 12월 7억4,600만 달러에서 8억410만 달러로 증가했습니다. 특히 부실채권 잔액은 2,990만 달러로 감소했으며, 이 중 1,510만 달러는 SBA가 보증했습니다. 회사는 주당 유형자산 장부가치 13.42달러로 견고한 자본 상태를 유지하며, 대출 포트폴리오를 낮은 위험 프로필로 전환하는 데 집중하면서도 수익성 있는 성장을 지속하고 있습니다.
FinWise Bancorp a annoncé ses résultats du premier trimestre 2025 avec des originations de prêts de 1,3 milliard de dollars et un revenu net de 3,2 millions de dollars, ce qui a abouti à un bénéfice dilué par action de 0,23 dollar. L'entreprise a fait preuve de résilience malgré l'incertitude du marché, avec un revenu net d'intérêts de 14,3 millions de dollars.
Les principaux indicateurs de performance sont :
- Marge nette d'intérêt de 8,27 %
- Ratio d'efficacité de 64,8 %
- Retour sur actifs moyens de 1,7 %
- Retour sur fonds propres moyens de 7,4 %
Le total des actifs de la banque est passé à 804,1 millions de dollars, contre 746,0 millions en décembre 2024. Notamment, les soldes des prêts non performants ont diminué à 29,9 millions, dont 15,1 millions garantis par la SBA. L'entreprise a maintenu de solides positions en capital avec une valeur comptable tangible par action de 13,42 dollars et continue de se concentrer sur la migration de son portefeuille de prêts vers un profil de risque plus faible tout en maintenant une croissance rentable.
FinWise Bancorp meldete seine Ergebnisse für das erste Quartal 2025 mit Kreditvergaben in Höhe von 1,3 Milliarden US-Dollar und einem Nettogewinn von 3,2 Millionen US-Dollar, was zu einem verwässerten Ergebnis je Aktie von 0,23 US-Dollar führte. Das Unternehmen zeigte trotz der Marktunsicherheit Widerstandsfähigkeit, mit einem Nettozinsertrag von 14,3 Millionen US-Dollar.
Wichtige Leistungskennzahlen umfassen:
- Nettozinsmarge von 8,27%
- Effizienzquote von 64,8%
- Rendite auf durchschnittliche Vermögenswerte von 1,7%
- Rendite auf durchschnittliches Eigenkapital von 7,4%
Die Gesamtaktiva der Bank stiegen auf 804,1 Millionen US-Dollar, gegenüber 746,0 Millionen US-Dollar im Dezember 2024. Bemerkenswert ist, dass sich die notleidenden Kredite auf 29,9 Millionen US-Dollar verringerten, davon 15,1 Millionen US-Dollar durch die SBA garantiert. Das Unternehmen hielt starke Kapitalpositionen mit einem materiellen Buchwert je Aktie von 13,42 US-Dollar und konzentriert sich weiterhin darauf, sein Kreditportfolio in ein risikoärmeres Profil zu migrieren und gleichzeitig profitables Wachstum aufrechtzuerhalten.
- Net income increased 14% QoQ to $3.2M from $2.8M in Q4 2024
- Loan originations remained strong at $1.3B, up 15.9% YoY
- Nonperforming loan balances decreased to $29.9M from $36.5M in Q4 2024
- Strategic Program fees grew to $5.0M from $4.0M YoY
- Tangible book value per share increased to $13.42 from $13.15 in Q4 2024
- Strong capital position with 18.8% leverage ratio
- Net interest income declined to $14.3M from $15.5M in Q4 2024
- Net interest margin decreased to 8.27% from 10.00% in Q4 2024
- Efficiency ratio worsened to 64.8% from 61.0% YoY
- Return on average equity declined to 7.4% from 8.4% YoY
- Yield on loans decreased to 12.31% from 14.80% YoY
- Non-interest expense increased to $14.3M from $12.0M YoY
Insights
FinWise delivers mixed Q1 results with improved sequential EPS but margin compression; maintaining profitability while transitioning to lower-risk assets.
FinWise Bancorp's Q1 2025 results reflect a bank navigating interest rate challenges while deliberately shifting toward higher-quality assets. The company posted net income of
Loan originations held steady at
Most concerning was the net interest margin contraction to
Credit quality showed improvement with nonperforming loans decreasing to
The bank's balance sheet expanded to
Tangible book value per share increased to
The efficiency ratio deteriorated slightly to
- Loan Originations of
- Net Income of
- Diluted Earnings Per Share of
MURRAY, Utah, April 30, 2025 (GLOBE NEWSWIRE) -- FinWise Bancorp (NASDAQ: FINW) (“FinWise” or the “Company”), parent company of FinWise Bank (the “Bank”), today announced results for the quarter ended March 31, 2025.
First Quarter 2025 Highlights
- Loan originations totaled
$1.3 billion , compared to$1.3 billion for the quarter ended December 31, 2024, and$1.1 billion for the first quarter of the prior year - Net interest income was
$14.3 million , compared to$15.5 million for the quarter ended December 31, 2024, and$14.0 million for the first quarter of the prior year - Net income was
$3.2 million , compared to$2.8 million for the quarter ended December 31, 2024, and$3.3 million for the first quarter of the prior year - Diluted earnings per share (“EPS”) were
$0.23 for the quarter, compared to$0.20 for the quarter ended December 31, 2024, and$0.25 for the first quarter of the prior year - Efficiency ratio1 was
64.8% , compared to64.2% for the quarter ended December 31, 2024, and61.0% for the first quarter of the prior year - Nonperforming loan balances were
$29.9 million as of March 31, 2025, compared to$36.5 million as of December 31, 2024, and$26.0 million as of March 31, 2024. Nonperforming loan balances guaranteed by the Small Business Administration (“SBA”) were$15.1 million ,$19.2 million , and$14.8 million as of March 31, 2025, December 31, 2024, and March 31, 2024, respectively
“Our business model remained resilient in the first quarter, even amidst a more uncertain macro environment,” said Kent Landvatter, Chairman and CEO of FinWise. “We posted solid loan originations and encouraging credit quality metrics, as both non-performing loan balances and net charge-offs declined sequentially. Furthermore, we continued to migrate our loan portfolio to a lower risk profile while still growing profitably and increasing tangible book value. Subsequent to the end of the first quarter, we also announced a new strategic program agreement where FinWise will provide both lending and our Credit Enhanced Balance Sheet product. While we will continue to closely monitor the economic environment, we remain excited about the outlook for our business and will maintain our focus on executing our business strategy to continue to position the Company for long-term growth and shareholder value creation.”
________________
1 See “Reconciliation of Non-GAAP to GAAP Financial Measures” for a reconciliation of this non-GAAP measure.
Selected Financial and Other Data
| As of and for the Three Months Ended | |||||||||||
| ($ in thousands, except per share amounts) | 3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||||
| Amount of loans originated | $ | 1,264,604 | $ | 1,305,028 | $ | 1,091,479 | |||||
| Net income | $ | 3,189 | $ | 2,793 | $ | 3,315 | |||||
| Diluted EPS | $ | 0.23 | $ | 0.20 | $ | 0.25 | |||||
| Return on average assets | 1.7 | % | 1.6 | % | 2.2 | % | |||||
| Return on average equity | 7.4 | % | 6.5 | % | 8.4 | % | |||||
| Yield on loans | 12.31 | % | 14.01 | % | 14.80 | % | |||||
| Cost of interest-bearing deposits | 4.01 | % | 4.30 | % | 4.71 | % | |||||
| Net interest margin | 8.27 | % | 10.00 | % | 10.12 | % | |||||
| Efficiency ratio(1) | 64.8 | % | 64.2 | % | 61.0 | % | |||||
| Tangible book value per share(2) | $ | 13.42 | $ | 13.15 | $ | 12.70 | |||||
| Tangible shareholders’ equity to tangible assets(2) | 22.0 | % | 23.3 | % | 26.6 | % | |||||
| Leverage ratio (Bank under CBLR) | 18.8 | % | 20.6 | % | 20.6 | % | |||||
| Full-time equivalent employees | 196 | 196 | 175 | ||||||||
(1) This measure is not a measure recognized under United States generally accepted accounting principles, or GAAP, and is therefore considered to be a non-GAAP financial measure. See “Reconciliation of Non-GAAP to GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure. The efficiency ratio is defined as total non-interest expense divided by the sum of net interest income and non-interest income. The Company believes this measure is important as an indicator of productivity because it shows the amount of revenue generated for each dollar spent.
(2) Tangible shareholders’ equity to tangible assets is considered a non-GAAP financial measure. Tangible shareholders’ equity is defined as total shareholders’ equity less goodwill and other intangible assets. The most directly comparable GAAP financial measure is total shareholder’s equity to total assets. The Company had no goodwill or other intangible assets at the end of any period indicated. The Company has not considered loan servicing rights or loan trailing fee assets as intangible assets for purposes of this calculation. As a result, tangible shareholders’ equity is the same as total shareholders’ equity at the end of each of the periods indicated.
Net Interest Income
Net interest income was
Loan originations totaled
Net interest margin for the first quarter of 2025 was
Provision for Credit Losses
The Company’s provision for credit losses was
Non-interest Income
| Three Months Ended | |||||||||||
| ($ in thousands) | 3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||||
| Non-interest income | |||||||||||
| Strategic Program fees | $ | 4,962 | $ | 4,899 | $ | 3,965 | |||||
| Gain on sale of loans | 846 | 872 | 415 | ||||||||
| SBA loan servicing fees, net | 178 | 181 | 664 | ||||||||
| Change in fair value on investment in BFG | 400 | (200 | ) | (124 | ) | ||||||
| Credit enhancement income | 85 | 25 | — | ||||||||
| Other miscellaneous income | 1,339 | (174 | ) | 742 | |||||||
| Total non-interest income | $ | 7,810 | $ | 5,603 | $ | 5,662 | |||||
The increase in non-interest income from the prior quarter was due to an increase in other miscellaneous income resulting from a charge in the prior quarter of
The increase in non-interest income from the prior year period was primarily due to an increase in Strategic Program fees primarily due to higher originations, a favorable change in the fair value of our investment in BFG, and an increase in other miscellaneous income. The increase in other miscellaneous income from the prior year period was the result of increased revenue from growth in the Company’s operating lease portfolio and increased distributions received from BFG.
Non-interest Expense
| Three Months Ended | |||||||||||
| ($ in thousands) | 3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||||
| Non-interest expense | |||||||||||
| Salaries and employee benefits | $ | 9,826 | $ | 9,375 | $ | 7,562 | |||||
| Professional services | 907 | 556 | 1,567 | ||||||||
| Occupancy and equipment expenses | 543 | 533 | 544 | ||||||||
| Credit enhancement expense | 11 | 5 | — | ||||||||
| Other operating expenses | 3,031 | 3,094 | 2,332 | ||||||||
| Total non-interest expense | $ | 14,318 | $ | 13,563 | $ | 12,005 | |||||
The increase in non-interest expense from the prior quarter resulted from increases in salaries and employee benefits and professional services. The salaries and employee benefits increase pertained mainly to an increase in federal employer payroll taxes of
Reflecting the decreased net interest income and increase in operating expenses, the Company’s efficiency ratio was
Tax Rate
The Company’s effective tax rate was
Net Income
Net income was
Balance Sheet
The Company’s total assets were
The following table shows the gross loans held-for-investment (“HFI”) balances as of the dates indicated:
| 3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||||||||||||||
| ($ in thousands) | Amount | % of total loans | Amount | % of total loans | Amount | % of total loans | ||||||||||||||
| SBA | $ | 246,004 | 50.0 | % | $ | 255,056 | 54.8 | % | $ | 247,810 | 63.4 | % | ||||||||
| Commercial leases | 76,823 | 15.6 | % | 70,153 | 15.1 | % | 46,690 | 11.9 | % | |||||||||||
| Commercial, non-real estate | 3,550 | 0.7 | % | 3,691 | 0.8 | % | 2,077 | 0.5 | % | |||||||||||
| Residential real estate | 55,814 | 11.3 | % | 51,574 | 11.1 | % | 39,006 | 10.0 | % | |||||||||||
| Strategic Program loans | 19,916 | 4.1 | % | 20,122 | 4.3 | % | 17,216 | 4.4 | % | |||||||||||
| Commercial real estate: | ||||||||||||||||||||
| Owner occupied | 65,920 | 13.4 | % | 41,046 | 8.8 | % | 21,300 | 5.4 | % | |||||||||||
| Non-owner occupied | 1,390 | 0.3 | % | 1,379 | 0.3 | % | 2,155 | 0.6 | % | |||||||||||
| Consumer | 22,806 | 4.6 | % | 22,212 | 4.8 | % | 14,689 | 3.8 | % | |||||||||||
| Total period end loans | $ | 492,223 | 100.0 | % | $ | 465,233 | 100.0 | % | $ | 390,943 | 100.0 | % | ||||||||
Note: SBA loans as of March 31, 2025, December 31, 2024 and March 31, 2024 include
Total gross loans HFI as of March 31, 2025 increased
The following table shows the Company’s deposit composition as of the dates indicated:
| As of | ||||||||||||||||||||
| | 3/31/2025 | 12/31/2024 | 3/31/2024 | |||||||||||||||||
| ($ in thousands) | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||
| Noninterest-bearing demand deposits | $ | 123,322 | 20.4 | % | $ | 126,782 | 23.3 | % | $ | 107,076 | 25.3 | % | ||||||||
| Interest-bearing deposits: | ||||||||||||||||||||
| Demand | 83,410 | 13.8 | % | 71,403 | 13.1 | % | 48,279 | 11.4 | % | |||||||||||
| Savings | 8,888 | 1.5 | % | 9,287 | 1.7 | % | 11,206 | 2.6 | % | |||||||||||
| Money market | 17,939 | 2.9 | % | 16,709 | 3.0 | % | 9,935 | 2.3 | % | |||||||||||
| Time certificates of deposit | 372,200 | 61.4 | % | 320,771 | 58.9 | % | 247,600 | 58.4 | % | |||||||||||
| Total period end deposits | $ | 605,759 | 100.0 | % | $ | 544,952 | 100.0 | % | $ | 424,096 | 100.0 | % | ||||||||
The increase in total deposits at March 31, 2025 from December 31, 2024 and March 31, 2024 was driven primarily by increases in brokered time certificates of deposits, which were added to fund loan growth and increase balance sheet liquidity. The increase in total deposits from March 31, 2024 was also driven primarily by an increase in noninterest-bearing demand deposits and interest-bearing demand deposits, primarily due to growth from new and existing customer relationships.
Total shareholders’ equity as of March 31, 2025 increased
Bank Regulatory Capital Ratios
The following table presents the leverage ratios for the Bank as of the dates indicated as determined under the Community Bank Leverage Ratio Framework of the Federal Deposit Insurance Corporation:
| As of | |||||||
| Capital Ratios | 3/31/2025 | 12/31/2024 | 3/31/2024 | Well-Capitalized Requirement | |||
| Leverage ratio | |||||||
The decrease in the leverage ratio from the prior quarter and the prior year period primarily results from the growth in the loan portfolio exceeding the relative growth in capital from earnings. The Bank’s capital levels remain significantly above the regulatory well-capitalized guidelines as of March 31, 2025.
Share Repurchase Program
Since the share repurchase program’s inception in March 2024, the Company has repurchased and subsequently retired a total of 44,608 shares for
Asset Quality
The recorded balances of nonperforming loans were
The Company’s net charge-offs were
The following table presents a summary of changes in the allowance for credit losses and credit quality data for the periods indicated:
| Three Months Ended | |||||||||||
| ($ in thousands) | 3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||||
| Allowance for credit losses: | |||||||||||
| Beginning balance | $ | 13,176 | $ | 12,661 | $ | 12,888 | |||||
| Provision for credit losses(1) | 3,307 | 3,766 | 3,145 | ||||||||
| Charge offs | |||||||||||
| Construction and land development | — | — | — | ||||||||
| Residential real estate | (7 | ) | (206 | ) | (64 | ) | |||||
| Residential real estate multifamily | — | — | — | ||||||||
| Commercial real estate: | |||||||||||
| Owner occupied | (68 | ) | (411 | ) | (525 | ) | |||||
| Non-owner occupied | — | — | — | ||||||||
| Commercial and industrial | (83 | ) | (555 | ) | (54 | ) | |||||
| Consumer | (11 | ) | (60 | ) | (41 | ) | |||||
| Lease financing receivables | (36 | ) | — | (111 | ) | ||||||
| Strategic Program loans | (2,384 | ) | (2,528 | ) | (2,946 | ) | |||||
| Recoveries | |||||||||||
| Construction and land development | — | — | — | ||||||||
| Residential real estate | 3 | 6 | 53 | ||||||||
| Residential real estate multifamily | — | — | — | ||||||||
| Commercial real estate: | |||||||||||
| Owner occupied | 16 | 112 | 3 | ||||||||
| Non-owner occupied | — | — | — | ||||||||
| Commercial and industrial | 14 | — | — | ||||||||
| Consumer | 3 | 1 | — | ||||||||
| Lease financing receivables | (33 | ) | 77 | — | |||||||
| Strategic Program loans | 338 | 313 | 284 | ||||||||
| Ending Balance | $ | 14,235 | $ | 13,176 | $ | 12,632 | |||||
| Credit Quality Data | As of and For the Three Months Ended | ||||||||||
| ($ in thousands) | 3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||||
| Nonperforming loans: | |||||||||||
| Guaranteed | $ | 15,147 | $ | 19,203 | $ | 14,765 | |||||
| Unguaranteed | 14,737 | 17,281 | 11,231 | ||||||||
| Total nonperforming loans | $ | 29,884 | $ | 36,484 | $ | 25,996 | |||||
| Allowance for credit losses | $ | 14,235 | $ | 13,176 | $ | 12,632 | |||||
| Net charge offs | $ | 2,248 | $ | 3,249 | $ | 3,401 | |||||
| Total loans held-for-investment | $ | 492,223 | $ | 465,233 | $ | 390,943 | |||||
| Total loans held-for-investment less guaranteed balances | $ | 342,259 | $ | 306,483 | $ | 249,229 | |||||
| Average loans held-for-investment | $ | 485,780 | $ | 454,474 | $ | 387,300 | |||||
| Nonperforming loans to total loans held-for-investment | 6.1 | % | 7.8 | % | 6.6 | % | |||||
| Net charge offs to average loans held-for-investment (annualized) | 1.9 | % | 2.8 | % | 3.5 | % | |||||
| Allowance for credit losses to loans held-for-investment | 2.9 | % | 2.8 | % | 3.2 | % | |||||
| Allowance for credit losses to loans held-for-investment less guaranteed balances | 4.2 | % | 4.3 | % | 5.1 | % | |||||
(1) Excludes the provision for unfunded commitments.
Webcast and Conference Call Information
FinWise will host a conference call today at 5:30 PM ET to discuss its financial results for the first quarter. A simultaneous audio webcast of the conference call will be available at https://investors.finwisebancorp.com/.
The dial-in number for the conference call is (877) 423-9813 (toll-free) or (201) 689-8573 (international). The conference ID is 13752183. Please dial the number 10 minutes prior to the scheduled start time.
A webcast replay of the call will be available at investors.finwisebancorp.com for six months following the call.
Website Information
The Company intends to use its website, www.finwisebancorp.com, as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Such disclosures will be included in the Company’s website’s Investor Relations section. Accordingly, investors should monitor the Investor Relations portion of the Company’s website, in addition to following its press releases, filings with the Securities and Exchange Commission (“SEC”), public conference calls, and webcasts. To subscribe to the Company’s e-mail alert service, please click the “Email Alerts” link in the Investor Relations section of its website and submit your email address. The information contained in, or that may be accessed through, the Company’s website is not incorporated by reference into or a part of this document or any other report or document it files with or furnishes to the SEC, and any references to the Company’s website are intended to be inactive textual references only.
About FinWise Bancorp
FinWise Bancorp is a Utah bank holding company headquartered in Murray, Utah which wholly owns FinWise Bank, a Utah chartered state bank, and FinWise Investment LLC (together “FinWise”). FinWise provides Banking and Payment Solutions to fintech brands. The Company is expanding and diversifying its business model by incorporating Payments (MoneyRailsTM) and BIN Sponsorship offerings. Its existing Strategic Program Lending business, conducted through scalable API-driven infrastructure, powers deposit, lending and payments programs for leading fintech brands. In addition, FinWise manages other Lending programs such as SBA 7(a), Owner Occupied Commercial Real Estate, and Leasing, which provide flexibility for disciplined balance sheet growth. Through its compliance oversight and risk management-first culture, the Company is well positioned to guide fintechs through a rigorous process to facilitate regulatory compliance. For more information about FinWise visit https://investors.finwisebancorp.com.
Contacts
investors@finwisebank.com
media@finwisebank.com
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company’s current views with respect to, among other things, future events and its financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “projection,” “forecast,” “budget,” “goal,” “target,” “would,” “aim” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the Company’s industry and management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. The inclusion of these forward-looking statements should not be regarded as a representation by the Company or any other person that such expectations, estimates and projections will be achieved. Accordingly, the Company cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.
There are or will be important factors that could cause the Company’s actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: (a) the success of the financial technology and banking-as-a-service (“BaaS”) industries, as well as the continued evolution of the regulation of these industries; (b) the ability of the Company’s Fintech Banking and Payment Solutions service providers to comply with regulatory regimes, and the Company’s ability to adequately oversee and monitor its Fintech Banking and Payment Solutions service providers; (c) the Company’s ability to maintain and grow its relationships with its service providers; (d) changes in the laws, rules, regulations, interpretations or policies relating to financial institutions, accounting, tax, trade, tariffs, monetary and fiscal matters, including the application of interest rate caps or maximums; (e) the Company’s ability to keep pace with rapid technological changes in the industry or implement new technology effectively; (f) system failure or cybersecurity breaches of the Company’s network security; (g) potential exposure to fraud, negligence, computer theft and cyber-crime and other disruptions in the Company’s computer systems relating to its development and use of new technology platforms; (h) the Company’s reliance on third-party service providers for core systems support, informational website hosting, internet services, online account opening and other processing services; (i) general economic, political and business conditions, either nationally or in the Company’s market areas; (j) increased national or regional competition in the financial services industry; (k) the Company’s ability to measure and manage its credit risk effectively and the potential deterioration of the business and economic conditions in the Company’s primary market areas; (l) the adequacy of the Company’s risk management framework; (m) the adequacy of the Company’s allowance for credit losses (“ACL”); (n) the financial soundness of other financial institutions; (o) changes in Small Business Administration (“SBA”) rules, regulations and loan products, including specifically the Section 7(a) program or changes to the status of the Bank as an SBA Preferred Lender; (p) changes in the existing regulatory framework for brokered deposits and potential reclassification of certain BaaS deposits as brokered deposits in light of proposed rulemaking or application of the current deposit framework by the Federal Deposit Insurance Corporation (“FDIC”) to the Bank's BaaS deposits; (q) the value of collateral securing the Company’s loans; (r) the Company’s levels of nonperforming assets; (s) losses from loan defaults; (t) the Company’s ability to protect its intellectual property and the risks it faces with respect to claims and litigation initiated against the Company; (u) the Company’s ability to implement its growth strategy; (v) the Company’s ability to continue to launch new products or services successfully; (w) the concentration of the Company’s lending and depositor relationships through Strategic Programs in the financial technology industry generally; (x) interest rate, volatility and liquidity risks; (y) the effectiveness of the Company’s internal control over financial reporting and its ability to remediate any future material weakness in its internal control over financial reporting; (z) dependence on the Company’s management team and changes in management composition; (aa) the sufficiency of the Company’s capital; (bb) compliance with laws and regulations, supervisory actions, the Dodd-Frank Act, capital requirements, the Bank Secrecy Act and other anti-money laundering laws, predatory lending laws, and other statutes and regulations; (cc) the Company’s ability to maintain a strong core deposit base or other low-cost funding sources; (dd) results of examinations of the Company by its regulators; (ee) the Company’s involvement from time to time in legal proceedings; (ff) natural disasters and adverse weather, acts of terrorism, pandemics, an outbreak of hostilities or other international or domestic calamities, and other matters beyond the Company’s control; (gg) future equity and debt issuances; (hh) that the anticipated benefits of new lines of business that the Company may enter or investments or acquisitions the Company may make are not realized within the expected time frame or at all as a result of such things as the strength or weakness of the economy and competitive factors in the areas where the Company and such other businesses operate; (ii) further negative ratings outlooks or downgrades of the U.S.’s long-term credit rating, (jj) changes in legislative, regulatory or tax priorities, (kk) reductions in staffing at U.S. governmental agencies, (ll) potential government shutdowns or political impasses, including with respect to the U.S. debt ceiling and federal budget; and (mm) other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent reports on Form 10-Q and Form 8-K.
The timing and amount of purchases under the Company’s share repurchase program will be determined by the Share Repurchase Committee based upon market conditions and other factors. Purchases may be made pursuant to a program adopted under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The program does not require the Company to purchase any specific number or amount of shares and may be suspended or reinstated at any time in the Company’s discretion and without notice.
Any forward-looking statement speaks only as of the date of this release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, whether because of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence. In addition, the Company cannot assess the impact of each risk and uncertainty on its business or the extent to which any risk or uncertainty, or combination of risks and uncertainties, may cause actual results to differ materially from those contained in any forward-looking statements.
| FINWISE BANCORP CONSOLIDATED BALANCE SHEETS ($ in thousands; Unaudited) | |||||||||||
| 3/31/2025 | 12/31/2024 | 3/31/2024 | |||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | |||||||||||
| Cash and due from banks | $ | 8,155 | $ | 9,600 | $ | 3,944 | |||||
| Interest-bearing deposits | 112,117 | 99,562 | 111,846 | ||||||||
| Total cash and cash equivalents | 120,272 | 109,162 | 115,790 | ||||||||
| Investment securities available-for-sale, at fair value | 30,138 | 29,930 | — | ||||||||
| Investment securities held-to-maturity, at cost | 12,008 | 12,565 | 14,820 | ||||||||
| Investment in Federal Home Loan Bank (“FHLB”) stock, at cost | 440 | 349 | 349 | ||||||||
| Strategic Program loans held-for-sale, at lower of cost or fair value | 118,769 | 91,588 | 54,947 | ||||||||
| Loans held-for-investment, net | 472,402 | 447,812 | 377,101 | ||||||||
| Credit enhancement asset | 195 | 111 | — | ||||||||
| Premises and equipment, net | 3,123 | 3,548 | 6,665 | ||||||||
| Accrued interest receivable | 2,708 | 3,566 | 3,429 | ||||||||
| Deferred taxes, net | 290 | — | — | ||||||||
| SBA servicing asset, net | 3,331 | 3,273 | 4,072 | ||||||||
| Investment in Business Funding Group (“BFG”), at fair value | 8,100 | 7,700 | 8,200 | ||||||||
| Operating lease right-of-use (“ROU”) assets | 3,555 | 3,564 | 4,104 | ||||||||
| Income tax receivable, net | 3,353 | 8,868 | 2,400 | ||||||||
| Other assets | 25,445 | 23,939 | 18,956 | ||||||||
| Total assets | $ | 804,129 | $ | 745,976 | $ | 610,833 | |||||
| | |||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Liabilities | |||||||||||
| Deposits | |||||||||||
| Noninterest-bearing | $ | 123,322 | $ | 126,782 | $ | 107,076 | |||||
| Interest-bearing | 482,437 | 418,170 | 317,020 | ||||||||
| Total deposits | 605,759 | 544,952 | 424,096 | ||||||||
| Accrued interest payable | 2,750 | 1,494 | 588 | ||||||||
| Income taxes payable, net | 962 | 4,423 | 3,207 | ||||||||
| Deferred taxes, net | — | 899 | 508 | ||||||||
| Operating lease liabilities | 5,226 | 5,302 | 6,046 | ||||||||
| Other liabilities | 12,071 | 15,186 | 13,906 | ||||||||
| Total liabilities | 626,768 | 572,256 | 448,351 | ||||||||
| Shareholders’ equity | |||||||||||
| Common stock | 13 | 13 | 13 | ||||||||
| Additional paid-in-capital | 57,548 | 56,926 | 55,304 | ||||||||
| Retained earnings | 119,781 | 116,594 | 107,165 | ||||||||
| Accumulated other comprehensive income, net of tax | 19 | 187 | — | ||||||||
| Total shareholders’ equity | 177,361 | 173,720 | 162,482 | ||||||||
| Total liabilities and shareholders’ equity | $ | 804,129 | $ | 745,976 | $ | 610,833 | |||||
| FINWISE BANCORP CONSOLIDATED STATEMENTS OF INCOME ($ in thousands, except per share amounts; Unaudited) | |||||||||||
| Three Months Ended | |||||||||||
| 3/31/2025 | 12/31/2024 | 3/31/2024 | |||||||||
| Interest income | |||||||||||
| Interest and fees on loans | $ | 17,155 | $ | 18,388 | $ | 16,035 | |||||
| Interest on securities | 390 | 401 | 101 | ||||||||
| Other interest income | 991 | 573 | 1,509 | ||||||||
| Total interest income | 18,536 | 19,362 | 17,645 | ||||||||
| Interest expense | |||||||||||
| Interest on deposits | 4,256 | 3,833 | 3,639 | ||||||||
| Total interest expense | 4,256 | 3,833 | 3,639 | ||||||||
| Net interest income | 14,280 | 15,529 | 14,006 | ||||||||
| Provision for credit losses | 3,336 | 3,878 | 3,154 | ||||||||
| Net interest income after provision for credit losses | 10,944 | 11,651 | 10,852 | ||||||||
| Non-interest income | |||||||||||
| Strategic Program fees | 4,962 | 4,899 | 3,965 | ||||||||
| Gain on sale of loans, net | 846 | 872 | 415 | ||||||||
| SBA loan servicing fees, net | 178 | 181 | 664 | ||||||||
| Change in fair value on investment in BFG | 400 | (200 | ) | (124 | ) | ||||||
| Credit enhancement income | 85 | 25 | — | ||||||||
| Other miscellaneous (loss) income | 1,339 | (174 | ) | 742 | |||||||
| Total non-interest income | 7,810 | 5,603 | 5,662 | ||||||||
| Non-interest expense | |||||||||||
| Salaries and employee benefits | 9,826 | 9,375 | 7,562 | ||||||||
| Professional services | 907 | 556 | 1,567 | ||||||||
| Occupancy and equipment expenses | 543 | 533 | 544 | ||||||||
| Credit enhancement expense | 11 | 5 | — | ||||||||
| Other operating expenses | 3,031 | 3,094 | 2,332 | ||||||||
| Total non-interest expense | 14,318 | 13,563 | 12,005 | ||||||||
| Income before income taxes | 4,436 | 3,691 | 4,509 | ||||||||
| Provision for income taxes | 1,247 | 897 | 1,194 | ||||||||
| Net income | $ | 3,189 | $ | 2,794 | $ | 3,315 | |||||
| Earnings per share, basic | $ | 0.24 | $ | 0.21 | $ | 0.26 | |||||
| Earnings per share, diluted | $ | 0.23 | $ | 0.20 | $ | 0.25 | |||||
| Weighted average shares outstanding, basic | 12,716,155 | 12,659,986 | 12,502,448 | ||||||||
| Weighted average shares outstanding, diluted | 13,483,647 | 13,392,411 | 13,041,605 | ||||||||
| Shares outstanding at end of period | 13,216,903 | 13,211,640 | 12,793,555 | ||||||||
| FINWISE BANCORP AVERAGE BALANCES, YIELDS, AND RATES ($ in thousands; Unaudited) | ||||||||||||||||||||||||||
| | Three Months Ended | |||||||||||||||||||||||||
| | 3/31/2025 | 12/31/2024 | 3/31/2024 | |||||||||||||||||||||||
| Average Balance | Interest | Average Yield/ Rate | Average Balance | Interest | Average Yield/ Rate | Average Balance | Interest | Average Yield/ Rate | ||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||||||||||
| Interest-bearing deposits | $ | 92,794 | $ | 991 | 4.33 | % | $ | 52,375 | $ | 573 | 4.35 | % | $ | 111,911 | $ | 1,509 | 5.42 | % | ||||||||
| Investment securities | 42,314 | 390 | 3.74 | % | 43,212 | 401 | 3.69 | % | 15,174 | 101 | 2.67 | % | ||||||||||||||
| Strategic Program loans held-for-sale | 79,612 | 4,264 | 21.72 | % | 67,676 | 5,040 | 29.63 | % | 42,452 | 3,475 | 32.93 | % | ||||||||||||||
| Loans held-for-investment | 485,780 | 12,891 | 10.76 | % | 454,474 | 13,348 | 11.68 | % | 387,300 | 12,560 | 13.04 | % | ||||||||||||||
| Total interest earning assets | 700,500 | 18,536 | 10.73 | % | 617,737 | 19,362 | 12.47 | % | 556,837 | 17,645 | 12.74 | % | ||||||||||||||
| Noninterest-earning assets | 54,184 | 55,767 | 39,123 | |||||||||||||||||||||||
| Total assets | $ | 754,684 | $ | 673,504 | $ | 595,960 | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||
| Demand | $ | 76,403 | $ | 670 | 3.56 | % | $ | 57,305 | $ | 617 | 4.28 | % | $ | 51,603 | $ | 503 | 3.92 | % | ||||||||
| Savings | 9,247 | 7 | 0.30 | % | 9,192 | 9 | 0.40 | % | 9,301 | 19 | 0.83 | % | ||||||||||||||
| Money market accounts | 17,884 | 163 | 3.70 | % | 15,726 | 147 | 3.73 | % | 10,200 | 66 | 2.60 | % | ||||||||||||||
| Certificates of deposit | 326,920 | 3,416 | 4.24 | % | 272,799 | 3,060 | 4.46 | % | 239,577 | 3,051 | 5.12 | % | ||||||||||||||
| Total deposits | 430,454 | 4,256 | 4.01 | % | 355,022 | 3,833 | 4.30 | % | 310,681 | 3,639 | 4.71 | % | ||||||||||||||
| Other borrowings | 48 | — | 0.35 | % | 79 | — | 0.35 | % | 172 | — | 0.35 | % | ||||||||||||||
| Total interest-bearing liabilities | 430,502 | 4,256 | 4.01 | % | 355,101 | 3,833 | 4.29 | % | 310,853 | 3,639 | 4.71 | % | ||||||||||||||
| Noninterest-bearing deposits | 119,501 | 119,945 | 100,507 | |||||||||||||||||||||||
| Noninterest-bearing liabilities | 29,644 | 27,636 | 25,446 | |||||||||||||||||||||||
| Shareholders’ equity | 175,037 | 170,823 | 159,154 | |||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 754,684 | $ | 673,505 | $ | 595,960 | ||||||||||||||||||||
| Net interest income and interest rate spread | $ | 14,280 | 6.72 | % | $ | 15,529 | 8.18 | % | $ | 14,006 | 8.03 | % | ||||||||||||||
| Net interest margin | 8.27 | % | 10.00 | % | 10.12 | % | ||||||||||||||||||||
| Ratio of average interest-earning assets to average interest- bearing liabilities | 162.72 | % | 173.96 | % | 179.13 | % | ||||||||||||||||||||
| Reconciliation of Non-GAAP to GAAP Financial Measures (Unaudited) | |||||||||||
| Efficiency ratio | Three Months Ended | ||||||||||
| ($ in thousands) | 3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||||
| Non-interest expense | $ | 14,318 | $ | 13,563 | $ | 12,005 | |||||
| Net interest income | 14,280 | 15,529 | 14,006 | ||||||||
| Total non-interest income | 7,810 | 5,603 | 5,662 | ||||||||
| Adjusted operating revenue | $ | 22,090 | $ | 21,132 | $ | 19,668 | |||||
| Efficiency ratio | 64.8 | % | 64.2 | % | 61.0 | % | |||||
FinWise has entered into agreements with certain of its Strategic Program service providers pursuant to which they provide credit enhancement on loans which protects the Bank by indemnifying or reimbursing the Bank for incurred credit and fraud losses. We estimate and record a provision for expected losses for these Strategic Program loans in accordance with GAAP, which requires estimation of the provision without consideration of the credit enhancement. When the provision for expected losses over the life of the loans that are subject to such credit enhancement is recorded, a credit enhancement asset reflecting the potential future recovery of those losses is also recorded on the balance sheet in the form of non-interest income (credit enhancement income). Reimbursement or indemnification for incurred losses is provided for in the form of a deposit reserve account that is replenished periodically by the respective Strategic Program service provider. Any remaining income on such loans in excess of the amounts retained by FinWise and placed in the deposit reserve account are paid to the Strategic Program service provider. Income on such loans in excess of amounts retained by FinWise are expensed for services provided by the Strategic Program service provider including its legal commitment to indemnify or reimburse all credit or fraud losses pursuant to credit enhancement agreements. The credit enhancement asset is reduced as credit enhancement payments and recoveries are received from the Strategic Program service provider or taken from its cash reserve account. If the Strategic Program service provider is unable to fulfill its contracted obligations under its credit enhancement agreement, then the Bank could be exposed to the loss of the reimbursement and credit enhancement income as a result of this counterparty risk. See the following reconciliations of non-GAAP measures for the impact of the credit enhancement on our financial condition and results. Note that these amounts are supplemental and are not a substitute for an analysis based on GAAP measures. Similar amounts for periods prior to the quarter ended December 31, 2024 were immaterial and therefore not separately disclosed.
The following non-GAAP measures are presented to illustrate the impact of certain credit enhancement expenses on total interest income on loans held-for-investment and average yield on loans held-for-investment:
| As of and for the Three Months Ended | As of and for the Three Months Ended | ||||||||||||||||||||
| ($ in thousands; unaudited) | 3/31/2025 | 12/31/2024 | |||||||||||||||||||
| Total Average Loans HFI | Total Interest Income on Loans HFI | Average Yield on Loans HFI | Total Average Loans HFI | Total Interest Income on Loans HFI | Average Yield on Loans HFI | ||||||||||||||||
| Before adjustment for credit enhancement | $ | 485,780 | $ | 12,891 | 10.76 | % | $ | 454,474 | $ | 13,348 | 11.68 | % | |||||||||
| Less: credit enhancement expense | (11 | ) | (5 | ) | |||||||||||||||||
| Net of adjustment for credit enhancement expenses | $ | 485,780 | $ | 12,880 | 10.76 | % | $ | 454,474 | $ | 13,343 | 11.68 | % | |||||||||
Total interest income on loans held-for-investment net of credit enhancement expense and the average yield on loans held-for-investment net of credit enhancement expense are non-GAAP measures that include the impact of credit enhancement expense on total interest income on loans held-for-investment and the respective average yield on loans held-for-investment, the most directly comparable GAAP measures.
The following non-GAAP measures are presented to illustrate the impact of certain credit enhancement expenses on net interest income and net interest margin:
| As of and for the Three Months Ended | As of and for the Three Months Ended | ||||||||||||||||||||
| 3/31/2025 | 12/31/2024 | ||||||||||||||||||||
| ($ in thousands; unaudited) | Total Average Interest-Earning Assets | Net Interest Income | Net Interest Margin | Total Average Interest-Earning Assets | Net Interest Income | Net Interest Margin | |||||||||||||||
| Before adjustment for credit enhancement | $ | 700,500 | $ | 14,280 | 8.27 | % | $ | 617,737 | $ | 15,529 | 10.00 | % | |||||||||
| Less: credit enhancement expense | (11 | ) | (5 | ) | |||||||||||||||||
| Net of adjustment for credit enhancement expenses | $ | 700,500 | $ | 14,269 | 8.27 | % | $ | 617,737 | $ | 15,524 | 10.00 | % | |||||||||
Net interest income and net interest margin net of credit enhancement expense are non-GAAP measures that include the impact of credit enhancement expenses on net interest income and net interest margin, the most directly comparable GAAP measures.
Non-interest expenses less credit enhancement expenses is a non-GAAP measure presented to illustrate the impact of credit enhancement expense on non-interest expense:
| ($ in thousands; unaudited) | Three Months Ended March 31, 2025 | Three Months Ended December 31, 2024 | |||||
| Total non-interest expense | $ | 14,318 | $ | 13,564 | |||
| Less: credit enhancement expense | (11 | ) | (5 | ) | |||
| Total non-interest expense less credit enhancement expenses | $ | 14,307 | $ | 13,559 | |||
Total non-interest expense less credit enhancement expense is a non-GAAP measure that illustrates the impact of credit enhancement expenses on non-interest expense, the most directly comparable GAAP measure.
Total non-interest income less credit enhancement income is a non-GAAP measure to illustrate the impact of credit enhancement income resulting from credit enhanced loans on non-interest income:
| ($ in thousands; unaudited) | Three Months Ended March 31, 2025 | Three Months Ended December 31, 2024 | |||||
| Total non-interest income | $ | 7,810 | $ | 5,603 | |||
| Less: credit enhancement income | (85 | ) | (25 | ) | |||
| Total non-interest income less credit enhancement income | $ | 7,725 | $ | 5,578 | |||
Total non-interest income less indemnification income is a non-GAAP measure that illustrates the impact of credit enhancement income on non-interest income. The most directly comparable GAAP measure is non-interest income.
The following non-GAAP measure is presented to illustrate the effect of the credit enhancement program that creates the credit enhancement on the allowance for credit losses:
| ($ in thousands; unaudited) | As of March 31, 2025 | As of December 31, 2024 | ||||||
| Allowance for credit losses | $ | (14,235 | ) | $ | (13,176 | ) | ||
| Less: allowance for credit losses related to credit enhanced loans | (195 | ) | (111 | ) | ||||
| Allowance for credit losses excluding the effect of the allowance for credit losses related to credit enhanced loans | $ | (14,040 | ) | $ | (13,065 | ) | ||
The allowance for credit losses excluding the effect of the allowance for credit losses related to credit enhanced loans is a non-GAAP measure that reflects the effect of the credit enhancement program on the allowance for credit losses. The total outstanding balance of loans held-for-investment with credit enhancement as of March 31, 2025 and December 31, 2024 was approximately
FAQ
What are FINW's Q1 2025 earnings per share and how do they compare to previous quarters?
How much did FinWise Bank (FINW) loan originations total in Q1 2025?
What is FINW's net interest margin for Q1 2025 and why did it change?
How did FINW's nonperforming loans change in Q1 2025?
What was FINW's net income for Q1 2025 compared to previous periods?
