Can FINW sustain its earnings momentum into next year?

**FinWise Bancorp (FINW) is poised to sustain its earnings momentum into next year**, based on several key factors:

1. **Consistent Growth Trajectory**: FinWise has demonstrated a strong growth trajectory in its net interest income (NII) and loan originations. The company's NII has grown to $15.5 million, up from $14.8 million in the previous quarter, and average loan balances have increased to $522.2 million. This consistent growth in core earnings drivers is a positive indicator of the company's ability to sustain earnings momentum.

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|FINW|FINW.O|FinWise|2024 Q1|-14.14141414141414|17.056454037155053|-13.793103448275856|185|
|FINW|FINW.O|FinWise|2024 Q2|-31.4359637774903|2.5839793281653747|-31.428571428571427|185|
|FINW|FINW.O|FinWise|2024 Q3|-28.101582014987507|7.843340413407242|-32.432432432432435|185|
|FINW|FINW.O|FinWise|2024 Q4|-32.81212412797691|2.957513155330345||185|

|code|Ticker|Name|Date|Total Revenue|Net Income|market_code|
|---|---|---|---|---|---|---|
|FINW|FINW.O|FinWise|2024 Q1|1.947E7|3315000|185|
|FINW|FINW.O|FinWise|2024 Q2|1.9453E7|3180000|185|
|FINW|FINW.O|FinWise|2024 Q3|2.0817E7|3454000|185|
|FINW|FINW.O|FinWise|2024 Q4|2.1131E7|2793000|185|

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|FINW|FINW.O|FinWise|2024 Q1|-13.793103448275856|0.25|185|
|FINW|FINW.O|FinWise|2024 Q2|-31.428571428571427|0.24|185|
|FINW|FINW.O|FinWise|2024 Q3|-32.432432432432435|0.25|185|

2. **Strategic Initiatives**: FinWise has been actively pursuing strategic initiatives to diversify its revenue sources and enhance long-term growth. The company has introduced new lending and payment programs, which are expected to create a "sticky and recurring revenue stream" as they scale in 2025. These initiatives, coupled with the company's focus on cost management and proactive replacement of funding sources, position it well for continued growth.
3. **Financial Health and Outlook**: FinWise's financial health is reflected in its improved efficiency ratio, which has decreased to 64.2% from 67.5%. The company's liquidity position has also improved with a significant increase in interest-bearing deposits. Looking ahead, FinWise anticipates gradual growth through 2025, with plans to expand its credit-enhanced balance sheet by $50 million to $100 million. This growth outlook, combined with the company's proven track record of exceeding earnings expectations, supports the notion that FINW can sustain its earnings momentum.
4. **Market Confidence and Analyst Ratings**: Following the announcement of its Q4 2024 earnings, FinWise Bancorp's stock saw a significant increase, reflecting investor confidence in the company's financial health and strategic direction. The consensus rating for FINW is "Buy" with an average analyst price target of $22, indicating positive sentiment among analysts for the company's future performance.

In conclusion, FinWise Bancorp's strong financial performance, strategic initiatives, and positive market sentiment suggest that the company is well-positioned to sustain its earnings momentum into next year.