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

Key Points

• FinWise reported Q1 EPS of $0.20, missing estimates of $0.33 and producing revenue of $24.33M versus expectations of $50.76M, leaving only modest profitability (Q1 net income $2.7M).
• Management flagged worsening asset quality — $9.4M of net charge-offs concentrated in legacy SBA/e‑commerce credits and nonperforming loans of $49.8M — and warned charge-offs are likely to remain elevated in the near term.
• Offsetting positives include strong originations of $1.7B in Q1 (up 38% YoY) and a credit‑enhanced portfolio that scaled to $109M with expected organic growth, but the stock fell ~2.4% and Zacks cut its rating to a Hold.

FinWise Bancorp (NASDAQ:FINW - Get Free Report) announced its earnings results on Thursday. The company reported $0.20 EPS for the quarter, missing analysts' consensus estimates of $0.33 by ($0.13), FiscalAI reports. The company had revenue of $24.33 million during the quarter, compared to analysts' expectations of $50.76 million. FinWise Bancorp had a return on equity of 8.70% and a net margin of 10.66%.

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 Trading Down 2.4%

Shares of FINW stock traded down $0.38 on Thursday, reaching $15.55. 29,520 shares of the company's stock were exchanged, compared to its average volume of 10,730. FinWise Bancorp has a 52 week low of $13.48 and a 52 week high of $22.49. The stock has a market capitalization of $213.19 million, a PE ratio of 14.09 and a beta of 0.84. The company's fifty day simple moving average is $16.22 and its 200 day simple moving average is $17.40.

Analyst Ratings Changes

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

Institutional Investors Weigh In On FinWise Bancorp

A number of institutional investors and hedge funds have recently modified their holdings of the business. Bridgeway Capital Management LLC lifted its stake in shares of FinWise Bancorp by 0.8% during the 4th quarter. Bridgeway Capital Management LLC now owns 88,889 shares of the company's stock worth $1,595,000 after acquiring an additional 700 shares during the last quarter. Deutsche Bank AG lifted its stake in shares of FinWise Bancorp by 12.7% during the 4th quarter. Deutsche Bank AG now owns 9,611 shares of the company's stock worth $172,000 after acquiring an additional 1,086 shares during the last quarter. BNP Paribas Financial Markets lifted its stake in shares of FinWise Bancorp by 76.9% during the 3rd quarter. BNP Paribas Financial Markets now owns 2,890 shares of the company's stock worth $56,000 after acquiring an additional 1,256 shares during the last quarter. Empowered Funds LLC lifted its stake in shares of FinWise Bancorp by 7.1% during the 1st quarter. Empowered Funds LLC now owns 24,052 shares of the company's stock worth $421,000 after acquiring an additional 1,591 shares during the last quarter. Finally, Vanguard Group Inc. lifted its stake in shares of FinWise Bancorp by 0.4% during the 3rd quarter. Vanguard Group Inc. now owns 487,323 shares of the company's stock worth $9,449,000 after acquiring an additional 1,739 shares during the last quarter. 35.41% of the stock is owned by institutional investors.

FinWise Bancorp Company Profile

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.

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