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  Title	FinWise Bancorp Reports Third Quarter 2024 Results
  ID	3565015
  External ID	7244372532
  Author	Unknown
  Published Date	Oct. 24, 2024, 3:20 p.m.
  Summary	- Net Income of $3.5 Million - - Diluted Earnings Per Share of $0.25 - - Loan Originations Increase to $1.4 Billion - MURRAY, Utah, Oct. 24, 2024 (GLOBE NEWSWIRE) -- FinWise Bancorp (NASDAQ: FINW)
  Tags	press-release
  URL	https://www.marketscreener.com/quote/stock/finwise-bancorp-125758630/news/finwise-bancorp-reports-third-quarter-2024-results-48158093/
  Sentiment	Negative: 0.01784    Neutral: 0.75818    Positive: 0.22397
  Relevance	0.04255

• Content Details

  Content ID	1881865
  Key	fe8de938-e964-4b2a-a863-8bc81079ba1e
  Content	- Net Income of $3.5 Million - - Diluted Earnings Per Share of $0.25 - - Loan Originations Increase to $1.4 Billion - MURRAY, Utah, Oct. 24, 2024 (GLOBE NEWSWIRE) -- FinWise Bancorp (NASDAQ: FINW) (“FinWise” or the “Company”), parent company of FinWise Bank (the “Bank”), today announced results for the quarter ended September 30, 2024. Third Quarter 2024 Highlights Loan originations increased to $1.4 billion, compared to $1.2 billion for the quarter ended June 30, 2024, and $1.1 billion for the third quarter of the prior year Net interest income was $14.8 million, compared to $14.6 million for the quarter ended June 30, 2024, and $14.4 million for the third quarter of the prior year Net income was $3.5 million, compared to $3.2 million for the quarter ended June 30, 2024, and $4.8 million for the third quarter of the prior year Diluted earnings per share (“EPS”) were $0.25 for the quarter, compared to $0.24 for the quarter ended June 30, 2024, and $0.37 for the third quarter of the prior year Efficiency ratio 1 was 67.5%, compared to 66.3% for the quarter ended June 30, 2024, and 50.4% for the third quarter of the prior year was 67.5%, compared to 66.3% for the quarter ended June 30, 2024, and 50.4% for the third quarter of the prior year Annualized return on average equity was 8.3%, compared to 7.9% for the quarter ended June 30, 2024, and 12.8% for the third quarter of the prior year The recorded balances of nonperforming loans were $30.6 million as of September 30, 2024, compared to $27.9 million as of June 30, 2024, and $10.7 million as of September 30, 2023. The balance of nonperforming loans guaranteed by the Small Business Administration (“SBA”) was $17.8 million, $16.0 million, and $4.7 million as of September 30, 2024, June 30, 2024, and September 30, 2023, respectively 1 See “Reconciliation of Non-GAAP to GAAP Financial Measures” for a reconciliation of this non-GAAP measure. “Our results during the third quarter reflect the resiliency of our existing business as well as the actions we’ve taken to enhance long-term growth,” said Kent Landvatter, CEO of FinWise. “We saw a notable step-up in loan originations and generated solid revenue coupled with a deceleration of our expense growth. Additionally, we continued to gain traction with new strategic programs, as we announced one new lending program in the quarter, which brings the total new lending programs to three so far this year. Overall, I am pleased with the operational performance of our company and I am excited about the outlook. We will remain laser focused on continuing to grow our business and will strive to continue to deliver long-term value for all our stakeholders.” Selected Financial and Other Data ($ in thousands, except per share amounts and FTEs) As of and for the Three Months Ended 9/30/2024 6/30/2024 9/30/2023 Amount of loans originated $ 1,448,251 $ 1,170,904 $ 1,061,327 Net income $ 3,454 $ 3,180 $ 4,804 Diluted EPS $ 0.25 $ 0.24 $ 0.37 Return on average assets 2.1 % 2.1 % 3.7 % Return on average equity 8.3 % 7.9 % 12.8 % Yield on loans 14.16 % 14.89 % 17.40 % Cost of interest-bearing deposits 4.85 % 4.80 % 4.34 % Net interest margin 9.70 % 10.31 % 11.77 % Efficiency ratio(1) 67.5 % 66.3 % 50.4 % Tangible book value per share(2) $ 12.90 $ 12.61 $ 12.04 Tangible shareholders’ equity to tangible assets(2) 24.9 % 26.8 % 27.1 % Leverage ratio (Bank under CBLR) 20.3 % 20.8 % 22.1 % Full-time equivalent (“FTEs”) 194 191 158 (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 $14.8 million for the third quarter of 2024, compared to $14.6 million for the prior quarter and $14.4 million for the prior year period. The increase from the prior quarter was primarily due to average balance increases in the loans held-for-sale and loans held for investment portfolios and was partially offset by yield decreases in both the loans held-for-sale and loans held for investment portfolios. The increase from the prior year period was primarily due to increases in the average balances of the Company’s loans held-for-sale and loans held for investment portfolios and was partially offset by yield decreases on those same portfolios as well as increased rates and volumes on the certificate of deposit balances. Third quarter 2024 net interest income includes a $0.5 million one-time decrease for accrued interest not previously reversed at the time loans were deemed nonperforming. Loan originations totaled $1.4 billion for the third quarter of 2024, compared to $1.2 billion for the prior quarter and $1.1 billion for the prior year period. Originations through the first three weeks of October 2024 are tracking at a pace modestly lower than third quarter 2024 originations, which included an expected seasonal increase from the Company’s student loan strategic program. Net interest margin for the third quarter of 2024 was 9.70%, compared to 10.31% for the prior quarter and 11.77% for the prior year period. The decrease in net interest margin from the prior quarter is primarily attributable to the Company’s strategy to reduce the average credit risk in the loan portfolio by increasing its investment in higher quality but lower yielding loans and the previously described one-time decrease in net interest income. The net interest margin decrease from the prior year period resulted primarily from the Company’s strategy to reduce average credit risk in the portfolio combined with the increased cost of funds as the Bank competed in the national market for funds to support the asset growth. Provision for Credit Losses The Company’s provision for credit losses was $2.2 million for the third quarter of 2024, compared to $2.4 million for the prior quarter and $3.1 million for the prior year period. The provision for credit losses decreased when compared to the prior quarter due primarily to the Company’s periodic assessment of the qualitative factors resulting in the removal of the qualitative factor related to COVID, partially offset by an increase in other qualitative factors and slightly higher charge-offs. The decrease from the prior year period was primarily related to qualitative factors which had been adjusted upward in the third quarter of 2023 due to an increase in special mention, non-accrual and nonperforming assets primarily related to the SBA portfolio. Non-interest Income Three Months Ended ($ in thousands) 9/30/2024 6/30/2024 9/30/2023 Non-interest income Strategic Program fees $ 4,862 $ 4,035 $ 3,945 Gain on sale of loans 393 356 357 SBA loan servicing fees and servicing asset amortization 87 204 (138 ) Change in fair value on investment in BFG (100 ) (200 ) (500 ) Other miscellaneous income 812 771 1,228 Total non-interest income $ 6,054 $ 5,166 $ 4,892 The increase in non-interest income from the prior quarter was primarily due to an increase in originations related to the Company’s Strategic Programs. The increase in non-interest income from the prior year period was primarily due to increased fees associated with originations of Strategic Program loans, partially offset by a decrease in other miscellaneous income related to a gain on the resolution of a forbearance agreement in the Company’s SBA lending program recognized in the third quarter of 2023. Non-interest Expense Three Months Ended ($ in thousands) 9/30/2024 6/30/2024 9/30/2023 Non-interest expense Salaries and employee benefits $ 9,659 $ 8,609 $ 6,416 Professional services 1,331 1,282 750 Occupancy and equipment expenses 1,046 1,121 958 Other operating expenses 2,013 2,206 1,609 Total non-interest expense $ 14,048 $ 13,218 $ 9,733 The increase in non-interest expense from the prior quarter was primarily due to an increase in salaries and employee benefits, including a catch-up in bonus accrual expense of $0.4 million to reflect updated performance award estimates, a full quarter of amortization of the second quarter deferred compensation awards, and a full quarter of compensation and benefits for employees hired during the second quarter. The increase in non-interest expense from the prior year period was primarily due to an increase in salaries and employee benefits due mainly to increasing headcount and increases in professional services and other operating expenses driven by increased spending to support the growth in the Company’s business infrastructure. Reflecting the expenses incurred to develop the Company’s business infrastructure, the Company’s efficiency ratio was 67.5% for the third quarter of 2024, compared to 66.3% for the prior quarter and 50.4% for the prior year period. As a result of the infrastructure build, the Company anticipates the efficiency ratio will remain elevated until the Company begins to realize the revenues associated with the new programs being developed. Tax Rate The Company’s effective tax rate was 25.1% for the third quarter of 2024, compared to 23.9% for the prior quarter and 26.1% for the prior year period. The increase from the prior quarter was due primarily to more favorable resolution of historical state tax matters during the second quarter of 2024. The decrease from the prior year period was primarily due to a reduction in permanent differences impacting income tax expense. Net Income Net income was $3.5 million for the third quarter of 2024, compared to $3.2 million for the prior quarter and $4.8 million for the prior year period. The changes in net income for the three months ended September 30, 2024 compared to the prior quarter and prior year period are the result of the factors discussed above. Balance Sheet The Company’s total assets were $683.0 million as of September 30, 2024, an increase from $617.8 million as of June 30, 2024 and $555.1 million as of September 30, 2023. The increase in total assets from June 30, 2024 was primarily due to an increase of $30.5 million in investment securities available-for-sale and continued growth in the Company’s loans held for investment, net, and loans held-for-sale portfolios of $19.6 million and $17.5 million, respectively. The increase in total assets compared to September 30, 2023 was primarily due to increases in the Company’s loans held for investment, net, and loans held-for-sale portfolios of $93.9 million and $38.3 million, respectively, as well as an increase in investment securities available-for-sale of $30.5 million, partially offset by a decrease of $48.3 million in interest-bearing cash deposits. The following table shows the gross loans held for investment balances as of the dates indicated: 9/30/2024 6/30/2024 9/30/2023 ($ in thousands) Amount % of total loans Amount % of total loans Amount % of total loans SBA $ 251,439 57.9 % $ 249,281 60.2 % $ 219,305 64.9 % Commercial leases 64,277 14.8 % 56,529 13.7 % 31,466 9.3 % Commercial, non-real estate 3,025 0.7 % 1,999 0.5 % 2,578 0.8 % Residential real estate 41,391 9.5 % 42,317 10.2 % 34,891 10.3 % Strategic Program loans 19,409 4.5 % 17,861 4.3 % 20,040 5.9 % Commercial real estate: Owner occupied 32,480 7.5 % 28,340 6.8 % 17,092 5.1 % Non-owner occupied 2,736 0.7 % 2,134 0.5 % 4,588 1.4 % Consumer 19,206 4.4 % 15,880 3.8 % 7,675 2.3 % Total period end loans $ 433,963 100.0 % $ 414,341 100.0 % $ 337,635 100.0 % Note: SBA loans as of September 30, 2024, June 30, 2024 and September 30, 2023 include $156.3 million, $147.8 million and $112.5 million, respectively, of SBA 7(a) loan balances that are guaranteed by the SBA. The held for investment balance on Strategic Program loans with annual interest rates below 36% as of September 30, 2024, June 30, 2024 and September 30, 2023 was $3.2 million, $2.6 million and $4.4 million, respectively. Total gross loans held for investment as of September 30, 2024 were $434.0 million, an increase from $414.3 million and $337.6 million as of June 30, 2024 and September 30, 2023, respectively. The increase compared to June 30, 2024 was primarily due to increases in the commercial leases, owner occupied commercial real estate, consumer and SBA loan portfolios. The increase compared to September 30, 2023 was primarily due to increases in the commercial leases, SBA, commercial real estate owner occupied, and consumer loan portfolios. The following table shows the Company’s deposit composition as of the dates indicated: As of ​ 9/30/2024 6/30/2024 9/30/2023 ($ in thousands) Amount Percent Amount Percent Amount Percent Noninterest-bearing demand deposits $ 142,785 29.2 % $ 107,083 24.9 % $ 94,268 24.4 % Interest-bearing deposits: Demand 58,984 12.1 % 48,319 11.3 % 87,753 22.7 % Savings 9,592 1.9 % 9,746 2.3 % 8,738 2.3 % Money market 15,027 3.1 % 9,788 2.3 % 15,450 3.9 % Time certificates of deposit 262,271 53.7 % 254,259 59.2 % 180,544 46.7 % Total period end deposits $ 488,659 100.0 % $ 429,195 100.0 % $ 386,753 100.0 % The increase in total deposits from June 30, 2024 was driven primarily by increases in noninterest-bearing demand deposits and interest-bearing demand deposits and brokered time certificates of deposits. The increase in total deposits from September 30, 2023 was driven primarily by an increase in brokered time certificate of deposits and noninterest-bearing demand deposits. As of September 30, 2024, 35.4% of deposits at the Bank were uninsured, compared to 31.3% as of June 30, 2024, and 31.7% as of September 30, 2023. Uninsured deposits at the Bank as of September 30, 2024 includes 8.5% of total deposits contractually required to be maintained at the Bank pursuant to the Company’s Strategic Program agreements and an additional 9.4% of total deposits associated with the parent holding company or the Bank. Total shareholders’ equity as of September 30, 2024 increased $4.6 million to $170.4 million from $165.8 million at June 30, 2024. Compared to September 30, 2023, total shareholders’ equity increased by $20.0 million from $150.4 million. The increase from June 30, 2024 was primarily due to the Company’s net income. The increase from September 30, 2023 was primarily due to the Company’s net income as well as the additional capital issued in exchange for the Company’s increased ownership in BFG, partially offset by the repurchase of common stock under the Company’s share 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 9/30/2024 6/30/2024 9/30/2023 Well-Capitalized Requirement Leverage ratio 20.3% 20.8% 22.1% 9.0% The leverage ratio decrease from the prior quarter resulted primarily from assets growing at a faster pace than earnings generated by operations. The leverage ratio decrease from the prior year period resulted primarily from the growth in the loan portfolio. The Bank’s capital levels remain significantly above well-capitalized guidelines as of September 30, 2024. Share Repurchase Program Since the share repurchase program’s inception in March 2024 through September 30, 2024, the Company has repurchased a total of 44,608 shares for $0.5 million. There were no shares repurchased during the third quarter of 2024. Asset Quality The recorded balances of nonperforming loans were $30.6 million, or 7.1% of total loans held for investment, as of September 30, 2024, compared to $27.9 million, or 6.5% of total loans held for investment, as of June 30, 2024 and $10.7 million, or 3.2% of total loans held for investment, as of September 30, 2023. The balances of nonperforming loans guaranteed by the SBA were $17.8 million, $16.0 million, and $4.7 million as of September 30, 2024, June 30, 2024 and September 30, 2023, respectively. The increase in nonperforming loans from the prior quarter was primarily attributable to two SBA 7(a) loans totaling $5.7 million classified as nonperforming during the third quarter of 2024 of which $4.4 million was guaranteed by the SBA. The increase in nonperforming loans from the prior year period was primarily attributable to loans in the SBA 7(a) loan portfolio being classified as non-accrual mainly due to the negative impact of elevated interest rates on the Company’s small business borrowers. The Company’s allowance for credit losses to total loans held for investment was 2.9% as of September 30, 2024 compared to 3.2% as of June 30, 2024 and 3.8% as of September 30, 2023. The decrease in the ratio from the prior quarter and prior year periods was primarily due to the Company’s increased retention of most of the originated guaranteed portions in its SBA 7(a) loan program as well as removal of the qualitative factor related to COVID and its subsequent implications due to improving economic conditions. The Company’s net charge-offs were $2.4 million, $1.9 million and $2.2 million for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively. The increase from the prior quarter is primarily due to increased net charge-offs in the Strategic Program loans portfolio. The increase from the prior year period is primarily due to resolution of a large small business recovery that reduced net charge-offs in the third quarter of 2023. The following table presents a summary of changes in the allowance for credit losses and asset quality ratios for the periods indicated: Three Months Ended ​($ in thousands) 9/30/2024 6/30/2024 9/30/2023 Allowance for credit losses: Beginning balance $ 13,127 $ 12,632 $ 12,321 Provision for credit losses(1) 1,944 2,393 2,910 Charge offs Residential real estate (27 ) — — Commercial real estate Owner occupied (103 ) — (31 ) Non-owner occupied (221 ) — — Commercial and industrial (96 ) (184 ) (107 ) Consumer (15 ) (18 ) (28 ) Lease financing receivables (113 ) (69 ) — Strategic Program loans (2,360 ) (1,962 ) (2,748 ) Recoveries Residential real estate 3 3 3 Commercial real estate Owner occupied 219 — 389 Commercial and industrial 2 15 18 Consumer 4 1 2 Lease financing receivables 8 7 — Strategic Program loans 289 309 257 Ending Balance $ 12,661 $ 13,127 $ 12,986 Asset Quality Ratios As of and For the Three Months Ended ($ in thousands, annualized ratios) 9/30/2024 6/30/2024 9/30/2023 Nonperforming loans(2) $ 30,648 $ 27,907 $ 10,703 Nonperforming loans to total loans held for investment 7.1 % 6.5 % 3.2 % Net charge offs to average loans held for investment 2.3 % 1.9 % 2.8 % Allowance for credit losses to loans held for investment 2.9 % 3.2 % 3.8 % Net charge offs $ 2,409 $ 1,898 $ 2,245 (1) Excludes the provision for unfunded commitments. (2) Nonperforming loans as of September 30, 2024, June 30, 2024, and September 30, 2023 include $17.8 million, $16.0 million, and $4.7 million, respectively, of SBA 7(a) loan balances that are guaranteed by the SBA. Webcast and Conference Call Information FinWise will host a conference call today at 5:30 PM ET to discuss its financial results for the third quarter of 2024. 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 13748730. 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 Payments solutions to fintech brands. 2024 is a key expansion year for the company as it expands and diversifies its business model by launching and incorporating Payments Hub and BIN Sponsorship offerings into its current platforms. FinWise’s 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 Real Estate, and Leasing, which provides 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 industry, as well as the continued evolution of the regulation of this industry; (b) the ability of the Company’s Strategic Program or Fintech Banking and Payments Solutions service providers to comply with regulatory regimes, and the Company’s ability to adequately oversee and monitor its Strategic Program and Fintech Banking and Payments 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, 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 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) new lines of business or new products and services; (p) 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; (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 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 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) results of examinations of the Company by its regulators; (dd) the Company’s involvement from time to time in legal proceedings; (ee) 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; (ff) future equity and debt issuances; (gg) 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; and (hh) 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, 2023 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 STATEMENTS OF FINANCIAL CONDITION ($ in thousands; Unaudited) As of 9/30/2024 6/30/2024 9/30/2023 ASSETS Cash and cash equivalents Cash and due from banks $ 7,705 $ 5,158 $ 379 Interest-bearing deposits 78,063 83,851 126,392 Total cash and cash equivalents 85,768 89,009 126,771 Investment securities available-for-sale, at fair value 30,472 — — Investment securities held-to-maturity, at cost 13,270 13,942 15,840 Investment in Federal Home Loan Bank (“FHLB”) stock, at cost 349 349 476 Strategic Program loans held-for-sale, at lower of cost or fair value 84,000 66,542 45,710 Loans held for investment, net 418,065 398,512 324,197 Premises and equipment, net 17,099 15,665 14,181 Accrued interest receivable 3,098 3,390 2,711 SBA servicing asset, net 3,261 3,689 4,398 Investment in Business Funding Group (“BFG”), at fair value 7,900 8,000 4,000 Operating lease right-of-use (“ROU”) assets 3,735 3,913 4,481 Income tax receivable, net 3,317 2,103 1,134 Other assets 12,697 12,706 11,157 Total assets $ 683,031 $ 617,820 $ 555,056 ​ LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities Deposits Noninterest-bearing $ 142,785 $ 107,083 $ 94,268 Interest-bearing 345,874 322,112 292,485 Total deposits 488,659 429,195 386,753 Accrued interest payable 647 601 581 Deferred taxes, net 1,036 1,154 234 PPP Liquidity Facility 106 127 221 Operating lease liabilities 5,542 5,788 6,545 Other liabilities 16,671 15,159 10,320 Total liabilities 512,661 452,024 404,654 Shareholders’ equity Common stock 13 13 12 Additional paid-in-capital 56,214 55,441 50,703 Retained earnings 113,801 110,342 99,687 Accumulated other comprehensive income, net of tax 342 — — Total shareholders’ equity 170,370 165,796 150,402 Total liabilities and shareholders’ equity $ 683,031 $ 617,820 $ 555,056 FINWISE BANCORP CONSOLIDATED STATEMENTS OF INCOME ($ in thousands, except per share amounts; Unaudited) Three Months Ended 9/30/2024 6/30/2024 9/30/2023 Interest income Interest and fees on loans $ 17,590 $ 16,881 $ 15,555 Interest on securities 298 97 88 Other interest income 1,036 1,444 1,569 Total interest income 18,924 18,422 17,212 Interest expense Interest on deposits 4,161 3,807 2,801 Total interest expense 4,161 3,807 2,801 Net interest income 14,763 14,615 14,411 Provision for credit losses 2,157 2,385 3,070 Net interest income after provision for credit losses 12,606 12,230 11,341 Non-interest income Strategic Program fees 4,862 4,035 3,945 Gain on sale of loans, net 393 356 357 SBA loan servicing fees, net 87 204 (138 ) Change in fair value on investment in BFG (100 ) (200 ) (500 ) Other miscellaneous income 812 771 1,228 Total non-interest income 6,054 5,166 4,892 Non-interest expense Salaries and employee benefits 9,659 8,609 6,416 Professional services 1,331 1,282 750 Occupancy and equipment expenses 1,046 1,121 958 Other operating expenses 2,013 2,206 1,609 Total non-interest expense 14,049 13,218 9,733 Income before income taxes 4,611 4,178 6,500 Provision for income taxes 1,157 998 1,696 Net income $ 3,454 $ 3,180 $ 4,804 Earnings per share, basic $ 0.26 $ 0.25 $ 0.38 Earnings per share, diluted $ 0.25 $ 0.24 $ 0.37 Weighted average shares outstanding, basic 12,658,557 12,627,800 12,387,392 Weighted average shares outstanding, diluted 13,257,835 13,109,708 12,868,207 Shares outstanding at end of period 13,211,160 13,143,560 12,493,565 FINWISE BANCORP AVERAGE BALANCES, YIELDS, AND RATES ($ in thousands; Unaudited) ​ Three Months Ended ​ 9/30/2024 6/30/2024 9/30/2023 Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate Interest earning assets: Interest-bearing deposits $ 78,967 $ 1,036 5.22 % $ 105,563 $ 1,444 5.50 % $ 116,179 $ 1,569 5.36 % Investment securities 33,615 298 3.53 % 14,795 97 2.65 % 14,958 88 2.34 % Strategic Program loans held-for-sale 70,123 4,913 27.87 % 49,000 4,020 33.00 % 38,410 3,823 39.49 % Loans held for investment 422,820 12,677 11.93 % 400,930 12,861 12.90 % 316,220 11,732 14.72 % Total interest earning assets 605,525 18,924 12.43 % 570,288 18,422 12.99 % 485,767 17,212 14.06 % Noninterest-earning assets 56,290 46,531 27,240 Total assets $ 661,815 $ 616,819 $ 513,007 Interest-bearing liabilities: Demand $ 55,562 $ 547 3.92 % $ 47,900 $ 441 3.70 % $ 48,303 $ 483 3.96 % Savings 9,538 18 0.76 % 10,270 19 0.75 % 9,079 17 0.74 % Money market accounts 13,590 127 3.72 % 9,565 112 4.71 % 15,140 142 3.73 % Certificates of deposit 262,537 3,469 5.26 % 251,142 3,235 5.18 % 183,273 2,159 4.67 % Total deposits 341,227 4,161 4.85 % 318,877 3,807 4.80 % 255,795 2,801 4.34 % Other borrowings 112 — 0.35 % 142 — 0.35 % 235 — 0.35 % Total interest-bearing liabilities 341,339 4,161 4.85 % 319,019 3,807 4.80 % 256,030 2,801 4.34 % Noninterest-bearing deposits 127,561 108,520 92,077 Noninterest-bearing liabilities 25,536 27,700 16,299 Shareholders’ equity 167,379 161,580 148,601 Total liabilities and shareholders’ equity $ 661,815 $ 616,819 $ 513,007 Net interest income and interest rate spread $ 14,763 7.58 % $ 14,615 8.19 % $ 14,411 9.72 % Net interest margin 9.70 % 10.31 % 11.77 % Ratio of average interest-earning assets to average interest- bearing liabilities 177.40 % 178.76 % 189.73 % Reconciliation of Non-GAAP to GAAP Financial Measures Efficiency ratio Three Months Ended 9/30/2024 6/30/2024 9/30/2023 ​($ in thousands) Non-interest expense $ 14,048 $ 13,218 $ 9,733 Net interest income 14,763 14,615 14,411 Total non-interest income 6,054 5,166 4,892 Adjusted operating revenue $ 20,817 $ 19,781 $ 19,303 Efficiency ratio 67.5 % 66.8 % 50.4 %
  Content Reference URL	None

• Publisher

  Publisher Name	MarketScreener (#4446)
  Publisher URL	http://www.marketscreener.com
  Description	None
  Trust Flow Score	23
  Citation Flow Score	26

• Data Source

  Data Source Name	Quantexa News (#5)
  Data Source Type	news
  Data Source URL	https://app.aylien.com/dashboard
  Description	Welcome to Quantexa News API — the most powerful way to aggregate, filter, and integrate global news data into your apps and models.
  Weight	10