FinWise Bancorp Reports Third Quarter 2024 Results
FinWise Bancorp reported Q3 2024 results with net income of $3.5 million, up from $3.2 million in Q2 2024 but down from $4.8 million in Q3 2023. Loan originations increased to $1.4 billion, compared to $1.2 billion in Q2 2024. Net interest income was $14.8 million, slightly up from $14.6 million in Q2 2024. The company's efficiency ratio increased to 67.5% from 66.3% in Q2 2024. Notably, nonperforming loans rose to $30.6 million, with $17.8 million guaranteed by the SBA. The Bank maintains strong capital levels with a leverage ratio of 20.3%, well above regulatory requirements.
FinWise Bancorp ha riportato i risultati del terzo trimestre 2024 con un utile netto di 3,5 milioni di dollari, in aumento rispetto ai 3,2 milioni di dollari nel secondo trimestre 2024, ma in calo rispetto ai 4,8 milioni di dollari nel terzo trimestre 2023. Le originazioni di prestiti sono aumentate a 1,4 miliardi di dollari, rispetto a 1,2 miliardi di dollari nel secondo trimestre 2024. Il reddito netto da interessi è stato di 14,8 milioni di dollari, leggermente superiore ai 14,6 milioni di dollari del secondo trimestre 2024. Il rapporto di efficienza dell'azienda è aumentato al 67,5% rispetto al 66,3% del secondo trimestre 2024. In particolare, i prestiti non performanti sono saliti a 30,6 milioni di dollari, con 17,8 milioni di dollari garantiti dalla SBA. La Banca mantiene forti livelli di capitale con un rapporto di leva di 20,3%, ben al di sopra dei requisiti normativi.
FinWise Bancorp reportó resultados del tercer trimestre de 2024 con un ingreso neto de 3,5 millones de dólares, incrementándose desde los 3,2 millones de dólares en el segundo trimestre de 2024, pero disminuyendo desde los 4,8 millones de dólares en el tercer trimestre de 2023. Las originaciones de préstamos aumentaron a 1,4 mil millones de dólares, en comparación con los 1,2 mil millones de dólares en el segundo trimestre de 2024. El ingreso neto por intereses fue de 14,8 millones de dólares, ligeramente superior a los 14,6 millones de dólares en el segundo trimestre de 2024. La razón de eficiencia de la empresa aumentó al 67,5% desde el 66,3% en el segundo trimestre de 2024. Notablemente, los préstamos en mora aumentaron a 30,6 millones de dólares, con 17,8 millones de dólares garantizados por la SBA. El banco mantiene sólidos niveles de capital con un índice de apalancamiento de 20,3%, muy por encima de los requisitos regulatorios.
FinWise Bancorp는 2024년 3분기 결과를 발표하며 순이익 350만 달러를 기록, 2024년 2분기 320만 달러에서 증가했으나 2023년 3분기 480만 달러보다 감소했습니다. 대출 원금은 14억 달러로 증가하였으며, 2024년 2분기 12억 달러와 비교됩니다. 순이자수익은 1,480만 달러로, 2024년 2분기 1,460만 달러에서 소폭 증가했습니다. 회사의 효율성 비율은 66.3%에서 67.5%로 증가했습니다. 특히 부실채권은 3,060만 달러로 증가했으며, 그 중 1,780만 달러는 SBA에 의해 보장됩니다. 은행은 레버리지 비율 20.3%로 규제 기준을 훨씬 초과하는 강력한 자본 수준을 유지합니다.
FinWise Bancorp a annoncé ses résultats du troisième trimestre 2024 avec un revenu net de 3,5 millions de dollars, en hausse par rapport à 3,2 millions de dollars au deuxième trimestre 2024, mais en baisse par rapport à 4,8 millions de dollars au troisième trimestre 2023. Les origination de prêts ont augmenté à 1,4 milliard de dollars, contre 1,2 milliard de dollars au deuxième trimestre 2024. Le revenu net d'intérêts était de 14,8 millions de dollars, légèrement supérieur aux 14,6 millions de dollars du deuxième trimestre 2024. Le rapport d'efficacité de l'entreprise a augmenté à 67,5% par rapport à 66,3% au deuxième trimestre 2024. Notamment, les prêts non performants ont augmenté à 30,6 millions de dollars, avec 17,8 millions de dollars garantis par la SBA. La Banque maintient des niveaux de capital solides avec un ratio de levier de 20,3%, bien au-dessus des exigences réglementaires.
FinWise Bancorp berichtete die Ergebnisse für das dritte Quartal 2024 mit einem Nettoeinkommen von 3,5 Millionen Dollar, im Vergleich zu 3,2 Millionen Dollar im zweiten Quartal 2024, jedoch ein Rückgang von 4,8 Millionen Dollar im dritten Quartal 2023. Die Darlehensausgaben stiegen auf 1,4 Milliarden Dollar, verglichen mit 1,2 Milliarden Dollar im zweiten Quartal 2024. Das Nettozinseinkommen betrug 14,8 Millionen Dollar, leicht gestiegen von 14,6 Millionen Dollar im zweiten Quartal 2024. Das Effizienzverhältnis des Unternehmens stieg auf 67,5% von 66,3% im zweiten Quartal 2024. Bemerkenswert ist, dass die Leistungsprobleme bei Krediten auf 30,6 Millionen Dollar gestiegen sind, wobei 17,8 Millionen Dollar von der SBA garantiert werden. Die Bank hält starke Kapitalniveaus mit einem Leverage-Verhältnis von 20,3%, das weit über den regulatorischen Anforderungen liegt.
- Loan originations increased to $1.4 billion, up from $1.2 billion in Q2 2024
- Net income improved to $3.5 million from $3.2 million in Q2 2024
- Net interest income grew to $14.8 million from $14.6 million in Q2 2024
- Bank maintains strong capital position with 20.3% leverage ratio
- Net income decreased from $4.8 million in Q3 2023 to $3.5 million
- Efficiency ratio deteriorated to 67.5% from 50.4% year-over-year
- Nonperforming loans increased to $30.6 million from $10.7 million year-over-year
- Net interest margin declined to 9.70% from 11.77% year-over-year
Insights
The Q3 2024 results show mixed performance for FinWise Bancorp. While loan originations increased significantly to
Concerning trends include rising nonperforming loans at
Asset quality metrics warrant attention with nonperforming loans tripling YoY to
- Net Income of
- Diluted Earnings Per Share of
- Loan Originations Increase to
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 ratio1 was
67.5% , compared to66.3% for the quarter ended June 30, 2024, and50.4% for the third quarter of the prior year - Annualized return on average equity was
8.3% , compared to7.9% for the quarter ended June 30, 2024, and12.8% 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
Loan originations totaled
Net interest margin for the third quarter of 2024 was
Provision for Credit Losses
The Company’s provision for credit losses was
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
Reflecting the expenses incurred to develop the Company’s business infrastructure, the Company’s efficiency ratio was
Tax Rate
The Company’s effective tax rate was
Net Income
Net income was
Balance Sheet
The Company’s total assets were
The following table shows the gross loans held for investment 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
Total gross loans held for investment as of September 30, 2024 were
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,
Total shareholders’ equity as of September 30, 2024 increased
Bank Regulatory Capital Ratios
The following table presents the leverage ratios for the Bank as of the dates indicated as determined under the Community Bank Leverage Ratio Framework of the Federal Deposit Insurance Corporation:
| As of | |||||||||||
| Capital Ratios | 9/30/2024 | 6/30/2024 | 9/30/2023 | Well-Capitalized Requirement | |||||||
| Leverage ratio | |||||||||||
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
Asset Quality
The recorded balances of nonperforming loans were
The Company’s net charge-offs were
The following table presents a summary of changes in the allowance for credit losses and 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
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 | % | |||||
FAQ
What was FinWise Bancorp's (FINW) net income for Q3 2024?
How much were FINW's loan originations in Q3 2024?
What was FINW's efficiency ratio in Q3 2024?
