FinWise Bancorp (NASDAQ:FINW) Releases Quarterly Earnings Results, Misses Estimates By $0.13 EPS

FinWise Bancorp (NASDAQ:FINW) released its quarterly earnings results on Thursday. The company reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.33 by ($0.13), FiscalAI reports. FinWise Bancorp had a return on equity of 8.70% and a net margin of 10.66%.The business had revenue of $24.33 million during the quarter, compared to the consensus estimate of $50.76 million.

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

• Management reported elevated net charge-offs of $9.4M in Q1 concentrated in a narrow set of legacy SBA/e‑commerce credits (about $50M of remaining performing balances) and said charge-offs are likely to remain elevated for the next few quarters; nonperforming loans rose to $49.8M (53% government‑guaranteed).
• The credit‑enhanced portfolio has scaled from nearly zero to $109M in ~12 months, management expects organic growth of $8M–$10M per month for 2026 (skewed to mid/late year), and partner cash reserves are required to reimburse losses on these programs.
• Loan originations were strong at $1.7 billion in Q1 (up 38% YoY), the partner pipeline is described as materially strengthening, and early card/payment activity is contributing to rising interchange income.
• Financials show modest profitability (Q1 net income $2.7M, EPS $0.20) but the CFO flagged modeling assumptions including ~ $45M quarterly net charge‑offs for non‑credit‑enhanced loans, potential +$10M of watchlist loans migrating to NPLs in Q2, and near‑term pressure on the efficiency ratio despite a strong bank leverage ratio of 16.8%.

FinWise Bancorp Stock Performance

Shares of NASDAQ:FINW traded down $0.38 on Thursday, hitting $15.55. The company’s stock had a trading volume of 29,520 shares, compared to its average volume of 10,730. FinWise Bancorp has a 12 month low of $13.48 and a 12 month high of $22.49. The company has a market capitalization of $213.19 million, a price-to-earnings ratio of 14.09 and a beta of 0.84. The stock’s 50-day moving average is $16.22 and its two-hundred day moving average is $17.40.

Institutional Trading of FinWise Bancorp

Several institutional investors have recently modified their holdings of the company. Alliancebernstein L.P. lifted its holdings in shares of FinWise Bancorp by 0.6% in the third quarter. Alliancebernstein L.P. now owns 771,701 shares of the company’s stock valued at $14,963,000 after buying an additional 4,360 shares during the period. Wasatch Advisors LP lifted its holdings in shares of FinWise Bancorp by 7.2% in the third quarter. Wasatch Advisors LP now owns 754,543 shares of the company’s stock valued at $14,631,000 after buying an additional 50,434 shares during the period. Vanguard Group Inc. lifted its holdings in shares of FinWise Bancorp by 0.4% in the third quarter. Vanguard Group Inc. now owns 487,323 shares of the company’s stock valued at $9,449,000 after buying an additional 1,739 shares during the period. Geode Capital Management LLC lifted its holdings in shares of FinWise Bancorp by 1.2% in the fourth quarter. Geode Capital Management LLC now owns 206,561 shares of the company’s stock valued at $3,707,000 after buying an additional 2,416 shares during the period. Finally, Bridgeway Capital Management LLC lifted its holdings in shares of FinWise Bancorp by 2.7% in the second quarter. Bridgeway Capital Management LLC now owns 92,706 shares of the company’s stock valued at $1,392,000 after buying an additional 2,454 shares during the period. Institutional investors and hedge funds own 35.41% of the company’s stock.

Analysts Set New Price Targets

Separately, Zacks Research cut FinWise Bancorp from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 2nd. One equities research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $22.00.

About FinWise Bancorp

FinWise Bancorp is the bank holding company for FinWise Bank, a digital‐first community bank headquartered in Lindon, Utah. The company specializes in providing commercial lending and deposit products to marketplace lending platforms, fintech companies and small to mid‐sized businesses across the United States. FinWise Bancorp operates through its wholly owned subsidiary, FinWise Bank, which is FDIC‐insured and leverages a technology‐driven model to deliver banking services efficiently.

The company’s primary business activities include participant financing arrangements for marketplace lenders and other fintech platforms, as well as direct commercial loans.