FinWise Bancorp (FINW) investor relations material

Executive summary

• Q3 originations were $2.065B, up 27% QoQ and 15% YoY; net interest income was $41.9M and net income was $10.0M.

• Credit-enhanced balances nearly doubled QoQ to $146.2M, while tangible book value per share rose to $15.14 from $14.55 in Q2.

• Earnings included a $6.5M Tallied bargain purchase gain; higher credit provisions and credit-enhancement costs partly offset revenue growth.

Financial highlights

• Net income was $10.0M, or $0.73 diluted EPS; continuing operations earned $10.4M and discontinued operations lost $0.4M.

• Net interest income was $41.9M versus $28.4M in Q2 and $18.6M YoY; GAAP NIM was 19.58%, versus 13.83% and 9.09%.

• Non-interest income was $60.8M, including the $6.5M Tallied gain; non-interest expense was $42.7M.

• Provision for credit losses was $46.7M in Q3 and $78.7M for 9M, largely reflecting credit-enhanced portfolio growth; guarantee income offsets related provision dollar-for-dollar.

• Total operating revenue was $102.7M; reported efficiency ratio was 41.6%, versus 54.9% in Q2 and 47.6% YoY.

Outlook and guidance

• Q4 originations are tracking at $1.5B-$1.6B, a reasonable quarterly run rate for 2027; ~5% growth is expected as the year progresses, excluding new partners.

• Credit-enhanced balances are expected to add $20M organically in Q4; use 5% balance growth for 2027 until new partners launch.

• Non-credit-enhanced net charge-offs are expected near $4M in Q4; Q4 NPL migration is expected at $5M-$7M, and Q3 credit results are not viewed as a near-term run rate.

• Reported NIM is expected to rise as credit-enhanced balances grow, while NIM excluding excess credit-enhanced income is expected to decline gradually; model a 26% tax rate for Q4 2026 and FY 2027.

• Potential program launches span 4Q26-2Q27, but timing and revenue are not assured; credit card business sale is targeted by Q2 2027.