FinWise Bancorp (NASDAQ:FINW) Announces Earnings Results, Beats Estimates By $0.57 EPS

FinWise Bancorp (NASDAQ:FINW) issued its quarterly earnings results on Wednesday. The company reported $0.76 earnings per share for the quarter, topping analysts’ consensus estimates of $0.19 by $0.57, Zacks reports. FinWise Bancorp had a return on equity of 7.04% and a net margin of 6.76%. The firm had revenue of $33.02 million for the quarter, compared to analysts’ expectations of $41.62 million.

Here are the key takeaways from FinWise Bancorp’s conference call:

• Third-quarter originations surged to $2.1 billion, driven by stronger-than-expected student lending activity and the ramp-up of a credit-enhanced consumer program. Credit-enhanced balances nearly doubled sequentially to $146.2 million, supporting 17% quarter-over-quarter growth in net interest income.
• Credit performance improved, with non-credit-enhanced net charge-offs declining to $2.6 million from $5.2 million and non-performing loans edging down to $37.1 million. Management cautioned that the unusually favorable quarter is not yet a normalized run rate, forecasting roughly $4 million of charge-offs in the fourth quarter.
• Reported third-quarter net income was $10 million, or $0.73 per diluted share, but continuing operations included a $6.5 million bargain-purchase gain from the Tallied acquisition. FinWise will retain Tallied’s card technology and servicing capabilities while exiting the credit-card receivables portfolio, with some integration expenses expected to moderate.
• Management described its fintech partner pipeline as the strongest in years, including signed prepaid and payments agreements and additional opportunities expected to begin contributing between late 2027 and 2028. The company expects credit-enhanced balances to grow organically by about $20 million in the fourth quarter, followed by approximately 5% growth in 2027 before new partners are added.
• Fourth-quarter originations are expected to normalize to approximately $1.5 billion-$1.6 billion, below the third-quarter level, and the company expects lower SBA loan-sale activity in 2027. Upstart’s sponsorship ended, while two other partners are considering bank charters, although management said existing agreements extend into 2028-2029 and the financial impact should be manageable.

FinWise Bancorp Price Performance

NASDAQ:FINW opened at $13.33 on Friday. The stock has a market cap of $185.02 million, a PE ratio of 13.89 and a beta of 0.73. FinWise Bancorp has a fifty-two week low of $9.58 and a fifty-two week high of $19.86. The stock’s 50-day moving average is $12.14 and its two-hundred day moving average is $14.60.

Wall Street Analyst Weigh In

FINW has been the topic of a number of recent analyst reports. Wall Street Zen upgraded shares of FinWise Bancorp from a “strong sell” rating to a “sell” rating in a report on Saturday, October 17th. Zacks Research lowered shares of FinWise Bancorp from a “hold” rating to a “strong sell” rating in a research note on Monday, August 3rd. Weiss Ratings reiterated a “hold (c)” rating on shares of FinWise Bancorp in a research report on Monday, August 3rd. Stephens downgraded shares of FinWise Bancorp from an “overweight” rating to an “equal weight” rating and set a $16.00 target price on the stock. in a research note on Thursday, August 6th. Finally, Raymond James Financial restated an “outperform” rating and issued a $15.00 target price on shares of FinWise Bancorp in a report on Thursday. One investment analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $15.50.

About FinWise Bancorp

FinWise Bancorp is the bank holding company for FinWise Bank, a Utah-chartered financial institution headquartered in Murray, Utah. Through its subsidiary, the company provides banking and lending services to consumers, small businesses and commercial customers.

FinWise Bank operates a strategic lending platform that partners with fintech companies, loan originators and other third parties to support the origination and servicing of consumer and small-business loans. Its offerings also include commercial lending, small business lending, Small Business Administration loans, commercial real estate financing and other credit products.

The bank additionally serves customers through its Utah community banking business, which provides deposit accounts and traditional banking services.