FinWise Bancorp Reports Third Quarter 2026 Results

A $6.5 million acquisition gain contributed to earnings, while FinWise plans to exit credit card portfolio ownership.

Rhea-AI Summary

FinWise Bancorp (FINW) reported third-quarter 2026 net income of $10.0 million, up from both the prior quarter and year-earlier period. Diluted earnings were $0.73 per share, versus $0.15 and $0.34, respectively. Results included a $6.5 million bargain purchase gain from the July 20 Tallied acquisition and a $0.4 million discontinued-operations loss.

Loan originations reached $2.1 billion, versus $1.6 billion in the second quarter and $1.8 billion a year earlier. Net interest income increased to $41.9 million, while net interest margin reached 19.58%. Credit-enhanced loan balances rose to $146.2 million. Credit-loss provisions totaled $46.7 million, largely offset by partner-guarantee income; provisions excluding credit-enhanced loans declined. Nonperforming loans fell to $37.1 million. FinWise plans to sell its credit card portfolio business by the second quarter of 2027 while retaining the technology and servicing platform.

19 points · 0 major

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Positive

• Moderate pointNet income of $10.0 million exceeded $2.1 million in Q2 2026 and $4.9 million in Q3 2025.
• Moderate pointLoan originations of $2.1 billion exceeded $1.6 billion in Q2 2026 and $1.8 billion in Q3 2025.
• Moderate pointNet interest income of $41.9 million increased from $28.4 million sequentially and $18.6 million year over year.
• Moderate pointNet interest margin of 19.58% increased from 13.83% in Q2 2026 and 9.09% in Q3 2025.
• Moderate pointCredit-enhanced loans of $146.2 million exceeded $74.2 million at June 30 and $41.4 million a year earlier.
• Moderate pointJuly 20 Tallied acquisition added card-issuing and program-management technology; earnings included a $6.5 million bargain purchase gain. 4.5% of market cap
• Moderate pointNon-GAAP provision excluding credit-enhanced loans fell to $1.355 million, versus $5.999 million sequentially and $3.949 million year-earlier.
• Moderate pointStrategic Program fees of $6.573 million rose from $5.251 million sequentially and $6.180 million year over year.
• Moderate pointNon-GAAP efficiency ratio of 41.6% improved from 54.9% in Q2 2026 and 47.6% in Q3 2025.

10 minor points

• Minor pointDiluted EPS of $0.73 rose from $0.15 in Q2 2026 and $0.34 in Q3 2025.
• Minor pointNonperforming loans of $37.1 million declined from $37.7 million at June 30 and $43.1 million a year earlier.
• Minor pointLoan-sale gains of $1.866 million exceeded $1.480 million in Q2 2026 and $1.854 million in Q3 2025.
• Minor pointNet SBA servicing fees of $79,000 compared with $80,000 sequentially and a $242,000 year-earlier loss.
• Minor pointAnnualized return on average assets of 4.3% increased from 0.9% sequentially and 2.2% year over year.
• Minor pointAnnualized return on average equity of 19.9% increased from 4.3% sequentially and 10.6% year over year.
• Minor pointTangible book value per share of $15.14 increased from $14.55 at June 30 and $13.84 a year earlier.
• Minor pointTangible equity-to-assets ratio of 21.7% increased from 21.5% at June 30 and 20.9% a year earlier.
• Minor pointBank leverage ratio of 18.1% remained unchanged sequentially and exceeded 17.2% a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.Credit card technology and development team will be retained to complete the platform for servicing partners’ programs.

Negative

• Moderate pointCredit-loss provision of $46.747 million rose from $20.943 million sequentially; $45.392 million was offset by partner-guarantee income. 32% of market cap
• Minor pointDiscontinued credit card operations recorded a $0.4 million loss in Q3 2026.
• Minor pointBFG investment fair-value loss of $900,000 compared with a $200,000 sequential loss and $200,000 year-earlier gain.
• Minor pointInterest-bearing deposit cost of 3.89% increased from 3.83% sequentially, but remained below 4.06% a year earlier.
• Minor pointOther miscellaneous income of $1.359 million fell from $1.567 million sequentially, but exceeded $1.298 million a year earlier.

Key Figures

Loan originations: $2.1 billion Net income: $10.0 million Diluted EPS: $0.73 +5 more

Loan originations

$2.1 billion

Third quarter 2026; compared with $1.6 billion in Q2 2026 and $1.8 billion in Q3 2025

Net income

$10.0 million

Third quarter 2026; compared with $2.1 million in Q2 2026 and $4.9 million in Q3 2025

Diluted EPS

$0.73

Third quarter 2026; compared with $0.15 in Q2 2026 and $0.34 in Q3 2025

Net interest income

$41.9 million

Third quarter 2026; compared with $28.4 million in Q2 2026 and $18.6 million in Q3 2025

Bargain purchase gain

$6.5 million

Recognized in third-quarter 2026 net income in connection with the Tallied acquisition

Total provision for credit losses

$46.7 million

Third quarter 2026; compared with $20.9 million in Q2 2026, with credit-enhanced loan provision offset by credit enhancement income

Net interest margin

19.58%

Third quarter 2026; compared with 13.83% in Q2 2026 and 9.09% in Q3 2025

Nonperforming loan balances

$37.1 million

As of September 30, 2026; compared with $37.7 million at June 30, 2026 and $43.1 million a year earlier

Key Terms

nonperforming loan, credit enhancement, discontinued operations, non-gaap financial measure

4 terms

nonperforming loan financial

"Nonperforming loan balances were $37.1 million as of September 30, 2026"

A nonperforming loan is a debt where the borrower has stopped making the agreed payments for an extended period or is otherwise unable to meet the loan terms, effectively putting the lender’s expected income at risk. It matters to investors because a rising share of such loans signals higher future losses, lower bank profits and weaker ability to lend — like a group of customers not paying their bills and forcing a store to set money aside for unpaid accounts.

credit enhancement financial

"The provision for credit losses on these loans differs from the core portfolio"

Credit enhancement is a set of tools or arrangements—such as guarantees, insurance, reserve funds, or priority of payments—designed to reduce the chance lenders or bondholders lose money if a borrower defaults. Investors care because these measures make a debt issue look safer and can raise its credit rating; like a co-signer or loan insurance, credit enhancement typically lowers the yield an issuer must pay but also reduces the investor’s risk.

discontinued operations financial

"the results of the credit card business are presented as discontinued operations"

Discontinued operations are parts of a company that it has decided to sell or shut down, and no longer plans to run in the future. This matters to investors because it helps them understand which parts of the business are ongoing and which are being phased out, providing a clearer picture of the company’s current performance and future prospects. Think of it like a store closing a department—it no longer contributes to sales or profits.

non-gaap financial measure financial

"Efficiency ratio is a non-GAAP financial measure"

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

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- Loan Originations of $2.1 Billion -
- Net Income of $10.0 Million -
- Diluted Earnings Per Share of $0.73 -

MURRAY, Utah, Oct. 28, 2026 (GLOBE NEWSWIRE) -- FinWise Bancorp (NASDAQ: FINW) (“FinWise”, the “Company”, “we”, “our”, or “us”), parent company of FinWise Bank (the “Bank”), today announced results for the quarter ended September 30, 2026.

Third Quarter 2026 Highlights

• Loan originations totaled $2.1 billion, compared to $1.6 billion for the quarter ended June 30, 2026, and $1.8 billion for the third quarter of the prior year
• Period end credit enhanced loan balances outstanding reached $146.2 million in the third quarter, compared to $74.2 million for the quarter ended June 30, 2026, and $41.4 million for the third quarter of the prior year
• Net interest income was $41.9 million, compared to $28.4 million for the quarter ended June 30, 2026, and $18.6 million for the third quarter of the prior year
• Net income was $10.0 million, compared to $2.1 million for the quarter ended June 30, 2026, and $4.9 million for the third quarter of the prior year
• Net income for the three months ended September 30, 2026 includes a $6.5 million bargain purchase gain resulting from the July 20, 2026 acquisition of certain assets and assumption of certain liabilities of Tallied Technologies Inc. and a $0.4 million loss from discontinued operations
• Diluted earnings per share (“EPS”) were $0.73 for the quarter, compared to $0.15 for the quarter ended June 30, 2026, and $0.34 for the third quarter of the prior year
• Efficiency ratio¹ was 41.6%, compared to 54.9% for the quarter ended June 30, 2026, and 47.6% for the third quarter of the prior year
• Nonperforming loan balances were $37.1 million as of September 30, 2026, compared to $37.7 million as of June 30, 2026, and $43.1 million as of September 30, 2025. Nonperforming loan balances guaranteed by the Small Business Administration (“SBA”) were $17.7 million, $19.1 million, and $23.6 million as of September 30, 2026, June 30, 2026, and September 30, 2025, respectively

“This quarter demonstrates the tangible progress we have made in broadening our platform and building a more capital-efficient sponsor bank,” said Jim Noone, CEO of FinWise Bancorp. “We originated $2.1 billion in loans and we nearly doubled our credit-enhanced balances to $146 million in the quarter. Even after the cost of those partner arrangements, net interest income rose 17%¹ from the second quarter. We also recognized a one-time gain from our first acquisition transaction.

“Credit performance improved during the quarter. Net charge-offs on loans without credit enhancement were $2.6 million in the quarter, well below the range of the last few quarters. Non-performing asset balances also decreased quarter-over-quarter. With tangible book value up 9% over the past year, a leverage ratio of 18.1%, a strong pipeline of prospective partners with the potential to contribute more meaningfully to future revenue, and continued share repurchases, we have the capital strength, teams and operating environment to execute. We remain committed to  disciplined execution, ongoing credit quality improvement, and delivering long-term value for our shareholders."

¹ _{See “Reconciliation of GAAP to Non-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)	9/30/2026				6/30/2026				9/30/2025
Amount of loans originated	$	2,065,300			$	1,629,920			$	1,789,736
Provision for credit losses, net of provision for credit-enhanced Strategic Program loans(1)	$	1,355			$	5,999			$	3,949
Net income	$	10,046			$	2,133			$	4,891
Diluted EPS(2)	$	0.73			$	0.15			$	0.34
Income from continuing operations before income taxes and provision for non-credit enhanced(3)	$	14,607			$	8,273			$	10,360
Return on average assets(4)		4.3	%			0.9	%			2.2	%
Return on average equity(4)		19.9	%			4.3	%			10.6	%
Yield on loans		25.14	%			18.75	%			13.25	%
Cost of interest-bearing deposits		3.89	%			3.83	%			4.06	%
Net interest margin		19.58	%			13.83	%			9.09	%
Efficiency ratio from continuing operations(5)		41.6	%			54.9	%			47.6	%
Tangible book value per share(6)	$	15.14			$	14.55			$	13.84
Tangible shareholders’ equity to tangible assets(6)		21.7	%			21.5	%			20.9	%
Leverage ratio (Bank under CBLR)		18.1	%			18.1	%			17.2	%
Full-time equivalent employees		209				206				194

(1)	Represents a non-GAAP financial measure calculated as the total provision for credit losses less the provision attributable to Strategic Program loans with credit enhancement. This non-GAAP measure reflects the portion of credit loss provision that is not covered by strategic partners with credit enhancement and therefore represents the Company’s provision expense for the credit exposure retained by the Company. See “Reconciliation of GAAP to Non-GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure.
(2)	FinWise uses the two-class method to calculate basic and diluted EPS as restricted stock awards are considered participating securities due to the dividend rights associated with those awards. Effective December 31, 2025, executive management elected to waive the dividend rights on their unvested restricted stock awards, and this waiver extends to restricted stock awards granted in 2026 to directors and various other employees. As a result, these unvested shares are no longer treated as participating securities and are excluded from the two-class method calculation of EPS. The impact on basic and diluted earnings per share was de minimis, and previously reported periods are not affected.
(3)	Represents a non-GAAP financial measure calculated by adding the provision for credit losses and subtracting the credit enhancement income to income from continuing operations before income taxes. See “Reconciliation of GAAP to Non-GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure.
(4)	Annualized for the respective three-month periods.
(5)	Efficiency ratio is a non-GAAP financial 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. See “Reconciliation of GAAP to Non-GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure.
(6)	Tangible shareholders’ equity to tangible assets is 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 at the end of any period indicated. The Company has not considered internally used software and 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.

Credit Card Business: Strategic Repositioning and Discontinued Operations
In July 2026, FinWise completed its acquisition of certain assets and assumption of certain liabilities of Tallied Technologies, Inc. (“Tallied”). The transaction added card issuing and program management technology, along with an experienced team, that expands the Company’s ability to support credit card programs for its fintech partners. Concurrent with the acquisition, the Company determined that investing in credit card receivables was not a strategy the Company would pursue, and the Board of Directors approved a plan to exit the credit card portfolio business and to divest the credit card loan portfolio and certain acquired assets and liabilities while retaining the technology and credit card servicing platform. The disposal group consists of the credit card portfolio as well as the program sponsor relationship, program records, and associated cardholder rewards liability acquired as part of the Tallied transaction. Accordingly, the results of the credit card business are presented as discontinued operations for all periods presented, and the related assets and liabilities are classified as assets and liabilities of discontinued operations on the balance sheet as of September 30, 2026. The Company is retaining the technology platform and development team to help complete the platform build out to be used to support our strategy to service credit card programs and the payments needs of our fintech partners as part of our banking-as-a service strategy.

For the third quarter of 2026, net income from continuing operations was $10.4 million, or $0.76 per diluted share, including a bargain purchase gain of $6.5 million. Net loss from discontinued operations was $0.4 million. The Company expects to complete the sale of its credit card business, including certain credit card assets acquired in the Tallied transaction, by the second quarter of 2027.

Loan Originations
Loan originations totaled $2.1 billion for the third quarter of 2026, an increase from the $1.6 billion recorded in the prior quarter and an increase from the $1.8 billion recorded in the prior year period. The growth in originations compared to both the prior quarter and the prior year period primarily reflects the seasonality of originations by student loan lenders, the rapid growth of a credit enhancement lending relationship, and an increase in volume from certain established strategic programs.

Net Interest Income and Net Interest Margin
Net interest income was $41.9 million for the third quarter of 2026, compared to $28.4 million for the prior quarter and $18.6 million for the prior year period. The increase from the prior quarter was primarily due to growth in the credit-enhanced loan portfolio and a decrease in the migration of performing loans to nonperforming loans, which resulted in a lower reversal of interest on nonaccrual loans and contributed to an increase in the average yield on loans held-for-investment. The increase from the prior year period was primarily due to the same growth in credit enhanced loans, as well as a change in estimate, based on additional information and experience, regarding the allocation of interest received on credit enhanced loans in excess of the amount FinWise retains. FinWise now estimates that all excess interest is attributable to servicing and credit guarantee expense. In the prior year, it had estimated that a portion was attributable to origination costs, or finders’ fees, which was reported in net interest income. Because this change in estimate was reflected in both the current and prior quarters, it did not affect the comparison to the quarter ended June 30, 2026.

Net interest margin for the third quarter of 2026 was 19.58%, compared to 13.83% for the prior quarter and 9.09% for the prior year period. The increase in net interest margin from the prior quarter was primarily due to growth in the higher-yielding credit-enhanced loan portfolio and a decrease in the migration of performing loans to nonaccrual status, which resulted in lower reversals of interest on nonaccrual loans, partially offset by a higher average rate paid on time certificates of deposit. The increase in net interest margin from the prior-year period was primarily due to growth in the higher-yielding credit-enhanced loan portfolio and higher yields on loans held-for-investment, the change in estimated allocation of excess interest as previously described, and lower rates paid on deposits.

Provision for Credit Losses

	Three Months Ended
($ in thousands)	9/30/2026				6/30/2026			9/30/2025
Provision for credit losses:
Strategic Program loans - with credit enhancement(1)	$	45,392			$	14,944		$	8,850
Strategic Program loans - without credit enhancement		1,324				1,995			2,462
All other loans (core portfolio)		(126	)			3,880			1,346
Provision for credit losses on loans		46,590				20,819			12,658
Provision for unfunded commitments		157				124			141
Total provision for credit losses	$	46,747			$	20,943		$	12,799

(1)	For credit enhanced loans, fintech partners are required to maintain a deposit account at FinWise, which is used to recover charge-offs. The provision for credit losses on these loans differs from the core portfolio, as it is fully offset by expected recoveries under the partner guarantee, which is recognized as credit enhancement income in non-interest income.

The Company’s provision for credit losses from continuing operations was $46.7 million for the third quarter of 2026, compared to $20.9 million for the prior quarter and $12.8 million for the prior year period. The increase from the prior quarter was primarily due to growth in the credit-enhanced loan programs, for which the provision is offset by credit enhancement income recognized in non-interest income. Excluding credit-enhanced loans, the provision for credit losses of $1.4 million declined $4.6 million from the prior quarter, compared to a provision of $5.9 million in the prior quarter, reflecting higher recoveries, reduced migration to classified loans resulting in less provisions for loans individually reviewed for impairment, and lower provisioning on Strategic Program loans without credit enhancement. The year-over-year increase was primarily related to growth in the credit-enhanced portfolio, partially offset by lower provisioning in the traditional bank portfolio as migration to classified status declined, and on Strategic Program loans without credit enhancement.

Non-interest Income

	Three Months Ended
($ in thousands)	9/30/2026				6/30/2026				9/30/2025
Non-interest income
Strategic Program fees	$	6,573			$	5,251			$	6,180
Gain on sale of loans		1,866				1,480				1,854
SBA loan servicing fees, net		79				80				(242	)
Change in fair value on investment in BFG		(900	)			(200	)			200
Credit enhancement income		45,392				14,944				8,762
Bargain purchase gain		6,456				—				—
Other miscellaneous income		1,359				1,567				1,298
Total non-interest income	$	60,825			$	23,122			$	18,052

The increase in non-interest income from the prior quarter was primarily due to an increase in credit enhancement income, which corresponds to the higher provision for credit losses on credit-enhanced loans for the quarter ended September 30, 2026. Non-interest income also included a $6.5 million bargain purchase gain recognized in connection with the Tallied acquisition. In addition, Strategic Program fees increased, consistent with growth in Strategic Program volume and in Strategic Program loans held for investment. These increases were partially offset by a decrease in the fair value of the Company’s investment in BFG.

The increase in non-interest income compared to the prior-year period was primarily due to an increase in credit enhancement income, driven by growth in credit-enhanced loan balances, and the $6.5 million bargain purchase gain recognized in connection with the Tallied acquisition. These increases were partially offset by a decrease in the fair value of the Company’s investment in BFG.

Non-interest Expense

	Three Months Ended
($ in thousands)	9/30/2026			6/30/2026			9/30/2025
Non-interest expense
Salaries and employee benefits	$	12,483		$	11,062		$	10,814
Professional services		1,426			1,146			876
Occupancy and equipment expenses		440			417			456
Credit enhancement servicing expense		4,284			1,393			248
Credit enhancement guarantee expense		20,049			11,337			1,720
Other operating expenses		4,062			2,951			3,335
Total non-interest expense	$	42,744		$	28,306		$	17,449

The increase in non-interest expense from the prior quarter resulted primarily from increases in credit enhancement guarantee and servicing expenses, largely resulting from an increase in interest income attributable to the credit-enhanced loan portfolio. Excluding credit enhancement related expenses, non-interest expense increased $2.8 million, primarily due to a $1.4 million increase for higher salaries and employee benefits, including employees added in connection with the Tallied acquisition, and higher other operating expenses.

The increase in non-interest expense from the prior-year period was primarily due to an increase in credit enhancement guarantee and servicing expenses resulting from growth in credit-enhanced loans, and higher salaries and employee benefits, principally from increased headcount, including employees added in connection with the Tallied acquisition.

FinWise’s efficiency ratio was 41.6% for the third quarter, compared to 54.9% for the prior quarter and 47.6% for the prior year period.  We expect the efficiency ratio to continue to improve as we realize increased revenues from interest earned on our growing credit-enhanced loan balances.

Tax Rate
The Company’s effective tax rate was 21.0% for the third quarter of 2026, down from 23.9% for the prior quarter and 23.7% for the prior year period. The lower effective tax rate in the third quarter is primarily driven by the  $6.5 million bargain purchase gain recognized in connection with the Tallied acquisition, as it is excluded  from the calculation of income tax because the related deferred taxes were recorded in acquisition accounting. Partially offsetting this benefit were $0.6 million of discrete tax expense related to state income tax refunds received during the quarter, as well as a higher estimated annual effective tax rate attributable to nondeductible compensation.

Net Income
Net income was $10.0 million for the third quarter of 2026, compared to $2.1 million for the prior quarter and $4.9 million for the prior year period. Net income from continuing operations was $10.4 million for the third quarter, compared to $1.8 million for the prior quarter and $4.9 million for the prior year period. Third quarter results included a non-recurring, pre-tax bargain purchase gain of $6.5 million recognized in connection with the Tallied acquisition; this gain was exempt from income tax as the related deferred taxes were recorded in acquisition accounting. Discontinued operations resulted in a loss, net of tax, of $0.4 million for the third quarter, compared to income, net of tax, of $0.4 million for the prior quarter. The remaining changes in net income for the three months ended September 30, 2026 relative to both the prior quarter and prior year period, are otherwise generally attributable to the factors discussed in the foregoing sections.

Balance Sheet
The Company’s total assets were $958.3 million as of September 30, 2026, an increase from $925.3 million as of June 30, 2026 and an increase from $899.9 million as of September 30, 2025. The increase in total assets from June 30, 2026 was primarily due to increases in credit-enhanced loans of $72.0 million, the credit enhancement asset of $35.9 million, and other assets of $13.9 million. These increases were partially offset by an increase in the allowance for credit losses of $36.1 million, a decrease in Strategic Program loans held-for-sale of $30.2 million, and a decrease in loans held-for-investment, excluding credit-enhanced loans, of $13.0 million.

The increase in total assets compared to September 30, 2025 was primarily due to increases in credit-enhanced loans of $104.9 million, the credit enhancement asset of $53.0 million, assets of discontinued operations of $42.3 million related to the credit card program, and other assets of $32.6 million. These increases were partially offset by a decrease in loans held-for-investment, excluding credit-enhanced loans, of $78.8 million, an increase in the allowance for credit losses of $54.3 million, and decreases in Strategic Program loans held-for-sale of $22.1 million and cash and cash equivalents of $13.1 million.

The following table provides the composition of loans held-for-investment (“HFI”) as of the dates indicated:

	9/30/2026						6/30/2026						9/30/2025
($ in thousands)	Amount			% of total loans			Amount			% of total loans			Amount			% of total loans
SBA	$	135,780		23.2	%		$	162,441		30.9	%		$	240,945		43.1	%
Commercial leases		79,102		13.5	%			72,940		13.9	%			77,763		13.9	%
Commercial, non-real estate		3,157		0.5	%			3,544		0.7	%			4,908		0.9	%
Residential real estate		79,934		13.7	%			71,426		13.6	%			61,521		11.0	%
Strategic Program loans:
Strategic Program loans - with credit enhancement		146,241		25.0	%			74,229		14.1	%			41,369		7.4	%
Strategic Program loans - without credit enhancement		36,902		6.3	%			34,488		6.6	%			21,899		3.9	%
Commercial real estate:
Owner occupied		87,465		14.9	%			87,779		16.7	%			84,703		15.1	%
Non-owner occupied		2,247		0.4	%			2,136		0.4	%			1,448		0.3	%
Consumer		14,321		2.5	%			17,170		3.3	%			24,569		4.4	%
Total period end loans	$	585,149		100.0	%		$	526,153		100.0	%		$	559,125		100.0	%

^{Note: SBA loans as of September 30, 2026, June 30, 2026, and September 30, 2025 include $44.0 million, $65.5 million, and $132.7 million, respectively, of SBA 7(a) loan balances that are guaranteed by the SBA.}

Total loans HFI as of September 30, 2026 increased $59.0 million and increased $26.0 million compared to June 30, 2026, and September 30, 2025, respectively. The increases were driven by growth in credit-enhanced Strategic Program loans, which increased $72.0 million and $104.9 million compared to June 30, 2026 and September 30, 2025, respectively, reflecting our 2025 strategic initiative to develop the credit-enhanced portfolio. These increases were partially offset by declines in the SBA portfolio of $26.7 million and $105.2 million compared to June 30, 2026 and September 30, 2025, respectively, resulting primarily from sales of the guaranteed portions of SBA 7(a) loans, reflecting ongoing portfolio and credit risk management.

The following table presents the Company’s deposit composition as of the dates indicated:

​	9/30/2026						6/30/2026						9/30/2025
($ in thousands)	Amount			Percent			Amount			Percent			Amount			Percent
Noninterest-bearing demand deposits	$	137,425		19.4	%		$	118,926		17.1	%		$	130,601		19.2	%
Interest-bearing deposits:
Demand		75,544		10.7	%			106,833		15.4	%			89,443		13.1	%
Savings		7,290		1.0	%			7,968		1.1	%			11,495		1.7	%
Money market		20,232		2.9	%			21,969		3.2	%			22,634		3.3	%
Time certificates of deposit		467,110		66.0	%			438,103		63.2	%			428,137		62.7	%
Total period end deposits	$	707,601		100.0	%		$	693,799		100.0	%		$	682,310		100.0	%

The increase in total deposits as of September 30, 2026 from June 30, 2026 was primarily due to growth in time certificates of deposit of $29.0 million and noninterest-bearing demand deposits of $18.5 million, partially offset by a decrease in interest-bearing demand deposits of $31.3 million. The increase in total deposits as of September 30, 2026 from September 30, 2025 was primarily driven by growth in time certificates of deposit of $39.0 million, which were utilized to fund growth in credit-enhanced loans and enhance the Company’s liquidity profile, and in noninterest-bearing demand deposits of $6.8 million, partially offset by a decrease in interest-bearing demand deposits of $13.9 million.

Total shareholders’ equity as of September 30, 2026 increased $8.9 million to $208.1 million from $199.2 million at June 30, 2026. Compared to September 30, 2025, total shareholders’ equity increased by $20.3 million from $187.8 million. The increases from June 30, 2026, and September 30, 2025 were primarily due to net income generated throughout the respective period, partially offset by repurchases of common stock under the Company’s stock repurchase program.

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	9/30/2026			6/30/2026			9/30/2025			Well-Capitalized Requirement(1)
Leverage ratio	18.1	%		18.1	%		17.2	%		8.0	%

⁽¹⁾ _{The well-capitalized requirement was 9.0% until July 1, 2026, at which time it was reduced to 8.0%.}

The leverage ratio was unchanged from the prior quarter, as growth in capital from earnings was offset by growth in average assets. The increase from the prior year period resulted primarily from growth in capital from earnings exceeding the relative growth in average assets. The Bank’s capital levels as of September 30, 2026 remain significantly above the regulatory well-capitalized guidelines as of September 30, 2026.

Share Repurchase Program
During the three months ended September 30, 2026, the Company repurchased  159,099 shares for $2.2 million under the Company’s share repurchase program announced in May 2026, which provides for the purchase of up to 685,000 of the Company’s issued and outstanding shares, from time to time, on or before the program's expiration date, in the open market, in privately-negotiated transactions, or otherwise, subject to applicable laws and regulations. As of September 30, 2026, the Company has repurchased an aggregate amount of 188,835 shares under the plan since its inception.

Asset Quality
The recorded balances of nonperforming loans were $37.1 million, or 6.3% of total loans held-for-investment, as of September 30, 2026, compared to $37.7 million, or 7.2% of total loans held-for-investment, as of June 30, 2026 and $43.1 million, or 7.7% of total loans held-for-investment, as of September 30, 2025. The balances of nonperforming loans guaranteed by the SBA were $17.7 million, $19.1 million, and $23.6 million as of September 30, 2026, June 30, 2026, and September 30, 2025, respectively. The decrease in nonperforming loans from the prior quarter and prior year period was primarily attributable to paydowns resulting from the sale of real property collateralizing nonperforming SBA 7(a) and commercial real estate loans. The decrease in nonperforming loans as a percentage of total loans held-for-investment from the prior quarter also reflects growth in credit-enhanced loans held-for-investment. The Company’s allowance for credit losses to total loans held-for-investment was 13.6% as of September 30, 2026 compared to 8.3% as of June 30, 2026 and 4.6% as of September 30, 2025. The increase in the ratio from the prior quarter and prior year period was primarily due to the provision for credit losses related to the growth of the credit enhanced loan balances.

The Company’s net charge-offs were $10.6 million, $11.4 million, and $3.1 million for the three months ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively. The decrease in net charge-offs from the prior quarter resulted primarily from lower charge-offs in the traditional bank portfolio, partially offset by higher charge-offs associated with credit-enhanced Strategic Program loans. The increase from the third quarter of 2025 resulted primarily from higher charge-offs associated with credit-enhanced Strategic Program loans as that program increased in size and matured. Charge-offs for the traditional bank portfolio totaled $1.1 million in the third quarter compared to $3.3 million in the prior quarter and $0.9 million in the third quarter of 2025. The decrease from the prior quarter reflects lower charge-offs on owner-occupied commercial real estate and commercial and industrial loans, while the increase from the prior year period primarily reflects charge-offs on owner-occupied commercial real estate loans resulting from the resolution of specific nonperforming loans.

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)	9/30/2026				6/30/2026				9/30/2025
Allowance for credit losses:
Beginning balance	$	43,851			$	34,382			$	16,247
Provision for credit losses(1)		46,590				20,819				12,658
Charge-offs
Construction and land development		—				—				—
Residential real estate		(98	)			(153	)			(33	)
Residential real estate multifamily		—				—				—
Commercial real estate:
Owner occupied		(826	)			(2,258	)			(258	)
Non-owner occupied		—				(47	)			—
Commercial and industrial		(165	)			(763	)			(409	)
Consumer		(13	)			(13	)			(119	)
Lease financing receivables		(48	)			(99	)			(52	)
Strategic Program loans:
Strategic Program loans - with credit enhancement		(8,216	)			(6,224	)			(105	)
Strategic Program loans - without credit enhancement		(2,528	)			(2,677	)			(2,641	)
Recoveries
Construction and land development		—				—				—
Residential real estate		279				4				3
Residential real estate multifamily		—				—				—
Commercial real estate:
Owner occupied		423				333				90
Non-owner occupied		14				—				—
Commercial and industrial		4				33				1
Consumer		5				7				3
Lease financing receivables		3				21				52
Strategic Program loans(2)		546				486				341
Ending Balance	$	79,821			$	43,851			$	25,778
Credit Quality Data	As of and For the Three Months Ended
($ in thousands)	9/30/2026				6/30/2026				9/30/2025
Nonperforming loans:
Guaranteed	$	17,743			$	19,100			$	23,572
Unguaranteed		19,390				18,570				19,534
Total nonperforming loans	$	37,133			$	37,670			$	43,106
Allowance for credit losses	$	79,821			$	43,851			$	25,778
Net charge-offs:
Core portfolio	$	422			$	2,935			$	722
Strategic Program loans - with credit enhancement(2)		8,055				6,139				105
Strategic Program loans - without credit enhancement		2,143				2,276				2,300
Total net charge-offs	$	10,620			$	11,350			$	3,127
Total loans held-for-investment	$	585,149			$	526,153			$	559,125
Total loans held-for-investment less guaranteed balances	$	541,143			$	460,650			$	426,392
Average loans held-for-investment	$	608,198			$	582,171			$	542,595
Nonperforming loans to total loans held-for-investment		6.3	%			7.2	%			7.7	%
Unguaranteed nonperforming loans to total loans held-for-investment		3.3	%			3.5	%			3.5	%
Net charge-offs to average loans held-for-investment (annualized)		6.9	%			7.8	%			2.3	%
Allowance for credit losses to total loans held-for-investment		13.6	%			8.3	%			4.6	%
Allowance for credit losses to total loans held-for-investment, excluding guaranteed and credit-enhanced balances		3.9	%			4.0	%			3.8	%

(1)	Excludes the provision for unfunded commitments.
(2)	Recoveries related to Strategic Program loans that were reimbursed fully on the credit enhanced portfolio totaled $9.5 million, $6.1 million, and $17.0 thousand for the three months ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively.

Webcast and Conference Call Information
FinWise will host a conference call today at 5:00 PM ET to discuss its financial results for the third quarter of 2026. 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 13762479. 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.

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 Payments solutions to fintech brands. FinWise’s existing Strategic Program Lending business, conducted through scalable API-driven infrastructure, powers deposit, lending and payments programs for leading fintech brands. As part of Strategic Program Lending, FinWise also provides a Credit Enhanced Balance Sheet Program, which addresses the challenges that lending and card programs face diversifying their funding sources and managing capital efficiency. 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. FinWise is also expanding and diversifying its business model by incorporating Payments (MoneyRails™) and BIN Sponsorship offerings. Through its compliance oversight and risk management-first culture, FinWise is well positioned to guide fintechs through a rigorous process to facilitate regulatory compliance. For more information about FinWise visit https://investors.finwisebancorp.com.

We periodically provide information for investors on our corporate website, finwisebancorp.com, and our investor relations website, investors.finwisebancorp.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and details related to our annual meeting of shareholders.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
This release may contain forward-looking statements within the meaning of 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, the Company’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “believe,” “expect,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “projection,” “forecast,” “budget,” “goal,” “target,” “would,” “aim” and “outlook,” or similar expressions generally indicate a forward-looking statement.

These forward-looking statements are based on management assumptions and involve risks and uncertainties that are subject to change based on various important factors, some of which are beyond the Company’s control. Numerous competitive, economic, regulatory, legal and technological events and factors, among others, could cause the Company’s actual results to differ materially from those indicated in these forward-looking statements, including: the success of the financial technology and banking-as-a-service industries, as well as the continued evolution of the regulation of these industries; the Company’s ability to maintain and grow its relationships with its service providers and reliance on such providers to comply with regulatory regimes; the Company’s ability to keep pace with rapid technological changes in the industry or implement new technology effectively, in particular the recent advancements in artificial intelligence and the risks that such technology presents; ability to effectively manage and remediate system failure or cybersecurity breaches of the Company’s network security; the Company’s ability to measure and manage its credit risk effectively and any deterioration of the business and economic conditions in the Company’s primary market areas; the adequacy of the Company’s allowance for credit losses; changes in Small Business Administration rules, regulations and loan products and the existing regulatory framework for brokered deposits; higher inflation and its impacts; the effects of changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs on its trading partners; the value of collateral securing the Company’s loans; the Company’s levels of nonperforming assets; the potential for negative consequences resulting from regulatory violations, investigations and examinations, including potential supervisory actions, the assessment of fines and penalties, the imposition of sanctions, the need to undertake remedial actions and possible damage to the Company’s reputation; natural disasters and adverse weather, acts of terrorism, pandemics, an outbreak of hostilities or other international or domestic calamities, including the ongoing conflicts in Iran and Middle East that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, and increase the volatility of financial markets; anticipated benefits of new lines of business that the Company may enter or investments or acquisitions the Company may make that are not realized within the expected time frame or at all, including the Company’s ability to manage integration costs and the timing in disposing of acquired assets classified as discontinued operations; further negative ratings outlooks or downgrades of the long-term credit rating of the United States; and potential government shutdowns and other political impasses, including with respect to the debt ceiling and the federal budget of the United States.

The Company cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review the Company’s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K. The Company does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by the Company or by or on behalf of the Company, except as may be required under applicable law.

Contacts
investors@finwisebank.com
media@finwisebank.com

FINWISE BANCORP CONSOLIDATED BALANCE SHEETS ($ in thousands; Unaudited)
	9/30/2026				6/30/2026			9/30/2025
ASSETS
Cash and cash equivalents
Cash and due from banks	$	8,786			$	6,111		$	10,362
Interest-bearing deposits		83,786				87,527			95,265
Total cash and cash equivalents		92,572				93,638			105,627
Investment securities available-for-sale, at fair value		24,998				27,546			27,761
Investment securities held-to-maturity, at cost		8,414				8,882			10,617
Strategic Program loans held-for-sale, at lower of cost or fair value		134,661				164,906			156,718
Loans held-for-investment, net		505,328				482,302			533,347
Credit enhancement asset		64,247				28,322			11,214
Assets subject to operating leases, net		10,040				11,107			13,317
Deferred taxes, net		2,926				2,848			1,079
Assets of discontinued operations		42,258				46,822			—
Other assets		72,881				58,938			40,249
Total assets	$	958,325			$	925,311		$	899,929
​
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits
Noninterest-bearing	$	137,425			$	118,926		$	130,601
Interest-bearing		570,176				574,873			551,709
Total deposits		707,601				693,799			682,310
Liabilities of discontinued operations		8,297				162			—
Other liabilities		34,377				32,159			29,854
Total liabilities		750,275				726,120			712,164
Shareholders’ equity
Common stock		14				14			14
Additional paid-in-capital		61,739				62,359			59,417
Retained earnings		146,308				136,804			128,282
Accumulated other comprehensive income (loss), net of tax		(11	)			14			52
Total shareholders’ equity		208,050				199,191			187,765
Total liabilities and shareholders’ equity	$	958,325			$	925,311		$	899,929

FINWISE BANCORP CONSOLIDATED STATEMENTS OF INCOME ($ in thousands, except per share amounts; Unaudited)
	Three Months Ended
	9/30/2026				6/30/2026				9/30/2025
Interest income
Interest and fees on loans	$	45,569			$	31,922			$	22,532
Interest on securities		315				337				360
Other interest income		891				888				1,074
Total interest income		46,775				33,147				23,966
Interest expense
Interest on deposits		4,857				4,746				5,359
Total interest expense		4,857				4,746				5,359
Net interest income		41,918				28,401				18,607
Provision for credit losses		46,747				20,943				12,799
Net interest income (loss) after provision for credit losses		(4,829	)			7,458				5,808
Non-interest income
Strategic Program fees		6,573				5,251				6,180
Gain on sale of loans, net		1,866				1,480				1,854
SBA loan servicing fees, net		79				80				(242	)
Change in fair value on investment in BFG		(900	)			(200	)			200
Credit enhancement income		45,392				14,944				8,762
Bargain purchase gain		6,456				—				—
Other miscellaneous income		1,359				1,567				1,298
Total non-interest income		60,825				23,122				18,052
Non-interest expense
Salaries and employee benefits		12,483				11,062				10,814
Professional services		1,426				1,146				876
Occupancy and equipment expenses		440				417				456
Credit enhancement servicing expense		4,284				1,393				248
Credit enhancement guarantee expense		20,049				11,337				1,720
Other operating expenses		4,062				2,951				3,335
Total non-interest expense		42,744				28,306				17,449
Income from continuing operations before income taxes		13,252				2,274				6,411
Provision for income taxes from continuing operations		2,830				512				1,520
Net income from continuing operations		10,422				1,762				4,891
Income (loss) from discontinued operations, net of tax		(376	)			371				—
Net income	$	10,046			$	2,133			$	4,891
Earnings per share, basic:
Earnings from continuing operations	$	0.79			$	0.13			$	0.36
Earnings (loss) from discontinued operations		(0.03	)			0.03				—
Net income per common share, basic	$	0.76			$	0.16			$	0.36
Earnings per share, diluted:
Earnings from continuing operations	$	0.76			$	0.13			$	0.34
Earnings (loss) from discontinued operations		(0.03	)			0.02				—
Net income per common share, diluted	$	0.73			$	0.15			$	0.34
Weighted average shares outstanding, basic		13,154,827				13,112,580				12,859,264
Weighted average shares outstanding, diluted		13,662,812				13,673,167				13,615,354
Shares outstanding at end of period		13,743,494				13,687,680				13,571,090

    

    

FINWISE BANCORP AVERAGE BALANCES, YIELDS, AND RATES ($ in thousands; Unaudited)
​	Three Months Ended
​	9/30/2026									6/30/2026									9/30/2025
	Average Balance			Interest			Average Yield/Rate			Average Balance			Interest			Average Yield/Rate			Average Balance			Interest			Average Yield/Rate
Interest-earning assets:
Interest-bearing deposits	$	91,527		$	891		3.86	%		$	96,659		$	888		3.68	%		$	97,404		$	1,074		4.37	%
Investment securities		34,567			315		3.62	%			36,804			337		3.67	%			39,497			360		3.61	%
Strategic Program loans held-for-sale		126,691			5,315		16.64	%			118,401			5,430		18.39	%			132,314			6,219		18.65	%
Loans held-for-investment		608,198			41,245		26.90	%			582,171			27,324		18.83	%			542,595			16,313		11.93	%
Total interest-earning assets(1)		860,983			47,766		22.01	%			834,035			33,979		16.34	%			811,810			23,966		11.71	%
Noninterest-earning assets		72,080									68,968									73,023
Total assets	$	933,063								$	903,003								$	884,833
Interest-bearing liabilities:
Demand	$	81,283		$	738		3.60	%		$	84,096		$	733		3.49	%		$	69,941		$	630		3.57	%
Savings		12,958			16		0.48	%			10,010			20		0.79	%			12,271			54		1.75	%
Money market accounts		21,255			186		3.47	%			20,972			180		3.44	%			24,629			237		3.82	%
Certificates of deposit		422,854			4,343		4.07	%			432,145			4,297		3.99	%			417,059			4,438		4.22	%
Total deposits		538,350			5,283		3.89	%			547,223			5,230		3.83	%			523,900			5,359		4.06	%
Other borrowings		—			—		—	%			—			—		—	%			—			—		—	%
Total interest-bearing liabilities(1)		538,350			5,283		3.89	%			547,223			5,230		3.83	%			523,900			5,359		4.06	%
Noninterest-bearing deposits		162,609									124,187									140,499
Noninterest-bearing liabilities		32,110									34,462									36,552
Shareholders’ equity		199,994									197,131									183,882
Total liabilities and shareholders’ equity	$	933,063								$	903,003								$	884,833
Net interest income and interest rate spread				$	42,483		18.12	%					$	28,749		12.51	%					$	18,607		7.65	%
Net interest margin							19.58	%								13.83	%								9.09	%
Ratio of average interest-earning assets to average interest-bearing liabilities							159.93	%								152.41	%								154.96	%

⁽¹⁾ _{Includes interest income of $1.0 million and $0.8 million and interest expense of $0.4 million and $0.5 million from discontinued operations for the three months ended September 30, 2026 and June 30, 2026, respectively. There were no discontinued operations for the three months ended September 30, 2025.}

Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)
Efficiency ratio	Three Months Ended
​($ in thousands)	9/30/2026				6/30/2026				9/30/2025
Total non-interest expense	$	42,744			$	28,306			$	17,449
Net interest income		41,918				28,401				18,607
Total non-interest income		60,825				23,122				18,052
Operating revenue	$	102,743			$	51,523			$	36,659
Efficiency ratio from continuing operations		41.6	%			54.9	%			47.6	%

The following table presents the impact of the credit enhancement program on our efficiency ratio:

Adjusted efficiency ratio	Three Months Ended
​($ in thousands)	9/30/2026				6/30/2026				9/30/2025
Non-interest expense (GAAP)	$	42,744			$	28,306			$	17,449
Less: credit enhancement program expenses		24,333				12,730				1,968
Adjusted non-interest expense		18,411				15,576				15,481
Net interest income (GAAP)		41,918				28,401				18,607
Less: credit enhancement program expenses		24,333				12,730				1,968
Adjusted net interest income		17,585				15,671				16,639
Total non-interest income (GAAP)		60,825				23,122				18,052
Less: credit enhancement income		45,392				14,944				8,762
Adjusted non-interest income		15,433				8,178				9,290
Adjusted operating revenue	$	33,018			$	23,849			$	25,929
Adjusted efficiency ratio from continuing operations		55.8	%			65.3	%			59.7	%

The following table reconciles the total provision for credit losses from continuing operations on a GAAP basis to a non-GAAP measure that excludes amounts attributable to credit-enhanced Strategic Program loans:

	Three Months Ended
($ in thousands)	9/30/2026			6/30/2026			9/30/2025
Total provision for credit losses from continuing operations  (GAAP):	$	46,747		$	20,943		$	12,799
Less: Strategic Program loans - with credit enhancement		45,392			14,944			8,850
Provision for credit losses, net of Strategic Program loans - with credit enhancement	$	1,355		$	5,999		$	3,949

Net income from continuing operations before provision for non-credit enhanced

	Three Months Ended
($ in thousands)	9/30/2026			6/30/2026			9/30/2025
Income from continuing operations before income taxes (GAAP)	$	13,252		$	2,274		$	6,411
Provision for credit losses, net of Strategic Program loans - with credit enhancement (see non-GAAP table above)		1,355			5,999			3,949
Income from continuing operations before income taxes and provision for non-credit enhanced	$	14,607		$	8,273		$	10,360

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 future recovery of those estimated credit losses pursuant to the strategic partner’s guarantee to assume the Bank’s credit losses on each of the loans in the respective guaranteed portfolio 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. 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. In the event the Strategic Program service provider is not able to perform according to the contractual terms, the Bank is entitled to receive all the income on the loans. The Bank incurs expenses for the amounts owed to the strategic partner for the credit guarantee and for servicing of the credit enhanced portfolio, if applicable (credit enhancement program expenses). See the following reconciliations of GAAP to 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.

The following non-GAAP measures are presented to illustrate the impact of certain credit enhancement program 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										As of and for the Three Months Ended
	9/30/2026										6/30/2026										9/30/2025
($ in thousands; unaudited)	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			Total Average Loans HFI			Total Interest Income on Loans HFI				Average Yield on Loans HFI
Before adjustment for credit enhancement	$	608,198		$	41,245			26.90	%		$	582,171		$	27,324			18.83	%		$	542,595		$	16,313			11.93	%
Less: credit enhancement program expenses(1)					(24,454	)									(13,286	)									(1,968	)
Net of adjustment for credit enhancement program expenses	$	608,198		$	16,791			10.95	%		$	582,171		$	14,038			9.67	%		$	542,595		$	14,345			10.49	%

⁽¹⁾ _{Includes credit enhancement expenses of $0.1 million and $0.6 million from discontinued operations for the three months ended September 30, 2026 and June 30, 2026, respectively. There were no discontinued operations for the three months ended September 30, 2025.}

Total interest income on loans held-for-investment net of credit enhancement program expenses and the average yield on loans held-for-investment net of credit enhancement program expenses are non-GAAP measures that include the impact of credit enhancement program expenses 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 program 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										As of and for the Three Months Ended
	9/30/2026										6/30/2026										9/30/2025
($ 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			Total Average Interest-Earning Assets			Net Interest Income				Net Interest Margin
Before adjustment for credit enhancement	$	860,983		$	42,483			19.58	%		$	834,035		$	28,749			13.83	%		$	811,810		$	18,607			9.09	%
Less: credit enhancement program expenses(1)					(24,454	)									(13,286	)									(1,968	)
Net of adjustment for credit enhancement program expenses	$	860,983		$	18,029			8.31	%		$	834,035		$	15,463			7.44	%		$	811,810		$	16,639			8.13	%

⁽¹⁾ _{Includes credit enhancement expenses of $0.1 million and $0.6 million from discontinued operations for the three months ended September 30, 2026 and June 30, 2026, respectively. There were no discontinued operations for the three months ended September 30, 2025.}

Net interest income and net interest margin net of credit enhancement program expenses are non-GAAP measures that include the impact of credit enhancement program expenses on net interest income and net interest margin, the most directly comparable GAAP measures.

Non-interest expenses less credit enhancement program expenses is a non-GAAP measure presented to illustrate the impact of credit enhancement program expenses on non-interest expense:

($ in thousands; unaudited)	Three Months Ended September 30, 2026				Three Months Ended June 30, 2026				Three Months Ended September 30, 2025
Total non-interest expense from continuing operations	$	42,744			$	28,306			$	17,449
Less: credit enhancement program expenses		(24,333	)			(12,730	)			(1,968	)
Total non-interest expense less credit enhancement program expenses	$	18,411			$	15,576			$	15,481

Total non-interest expense less credit enhancement program expenses is a non-GAAP measure that illustrates the impact of credit enhancement program 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 September 30, 2026				Three Months Ended June 30, 2026				Three Months Ended September 30, 2025
Total non-interest income from continuing operations	$	60,825			$	23,122			$	18,052
Less: credit enhancement income		(45,392	)			(14,944	)			(8,762	)
Total non-interest income less credit enhancement income	$	15,433			$	8,178			$	9,290

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 September 30, 2026				As of June 30, 2026				As of September 30, 2025
Allowance for credit losses	$	79,821			$	43,851			$	25,778
Less: allowance for credit losses related to credit enhanced loans		(64,247	)			(28,322	)			(11,214	)
Allowance for credit losses excluding the effect of the allowance for credit losses related to credit enhanced loans	$	15,574			$	15,529			$	14,564

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 September 30, 2026, June 30, 2026, and September 30, 2025 was approximately $146.2 million, $74.2 million, and $41.4 million, respectively.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were FinWise Bancorp’s third-quarter 2026 earnings?

FinWise reported $10.0 million in net income and $0.73 diluted EPS for the quarter ended September 30, 2026. Net income included a $6.5 million bargain purchase gain and a $0.4 million loss from discontinued operations.

When does FinWise expect to sell its credit card business?

FinWise expects to complete the sale of its credit card business, including certain assets acquired from Tallied, by the second quarter of 2027. The company is retaining the technology platform and development team to support credit card servicing and partners’ payments needs.

How did FinWise’s accounting estimate change affect year-over-year net interest income?

FinWise now allocates all excess interest received on credit-enhanced loans to servicing and credit-guarantee expense rather than allocating a portion to origination costs reported in net interest income. This change contributed to the year-over-year increase in net interest income but did not affect the comparison with Q2 2026, which used the same estimate.

What drove FinWise’s loan origination growth in Q3 2026?

FinWise attributes origination growth to student-loan seasonality, rapid growth in a credit-enhancement lending relationship, and increased volume from certain established Strategic Programs. These factors supported growth compared with both the preceding quarter and the year-earlier period.