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- **Revenue Summary**: 2025 net income +26%, Q4 originations $1.6B (vs. $1.4B guide). Credit enhanced balances $118M vs. $115M guide. 
- **Financials**: Q4 net income $3.9M, EPS $0.27. NIM 11.42% (10.0% ex credit enhanced). Efficiency ratio 50.5%. 
- **2026 Outlook**: 
  - Originations: $1.4B/Q baseline +5% growth. 
  - Credit enhanced: $8-10M/month growth. 
  - SBA: 2026 originations to match 2025 levels. 
  - Margin: 11.42% (10.0% ex credit enhanced). 
  - Charge-offs: $3.5M/Q for non-credit enhanced loans. 
- **Key Risks**: SBA processing delays, deposit volatility, AI implementation costs. 
- **Strategic Moves**: DreamFi launch, AI expansion, BIN sponsorship diversification. 


**【CEO Summary Section】**
- **Revenue Growth and Strategic Momentum**: FinWise achieved 26% net income growth in 2025, driven by balanced fee and spread income. Q4 loan originations reached $1.6B (vs. $1.4B guidance), with full-year originations up 22% YoY. Credit enhanced balances exceeded expectations, ending at $118M vs. $115M guidance. 
- **AI and Risk Management**: Expanding AI use in compliance, fraud detection, and workflow automation, while maintaining disciplined implementation to safeguard data. 
- **SBA and Strategic Partnerships**: SBA originations temporarily slowed due to government shutdowns but rebounded post-resumption. DreamFi launch adds new lower-risk growth channel. 
- **Credit Enhanced Portfolio**: Balances grew $76.5M in Q4, driving net interest margin to 11.42%. Credit enhancement income fully offsets loan loss provisions. 

**【CFO Financial Commentary】**
- **Q4 Financials**: Net income $3.9M, EPS $0.27. Net interest income +32% QoQ to $24.6M, noninterest income +24% to $22.3M. Efficiency ratio 50.5%. 
- **Guidance for 2026**: 
  - Loan originations: $1.4B/Q baseline +5% growth. 
  - Credit enhanced balances: $8-10M/month growth. 
  - SBA sales: Continue selling guaranteed portions in favorable markets. 
  - Net charge-offs: $3.5M/Q for non-credit enhanced loans. 
  - Margin: 11.42% when including credit enhanced, ~10% excluding. 

**【Q&A Highlights】**
- **Funding Costs**: CD rates will gradually decline as Fed rates ease, with benefits seen over 3-12 months. 
- **MoneyRails**: BIN sponsorship progress slower than expected, but cross-selling to existing partners driving incremental revenue. 
- **SBA Outlook**: Strong pipeline with 2026 originations expected to match 2025 levels. 
- **AI Implementation**: Exploring generative AI for compliance, fraud detection, and workflow automation. 
- **Deposit Volatility**: Noninterest-bearing deposits spiked $118M in Q4 due to strategic partner collateral requirements, expected to decline in 2026. 


FinWise Bancorp (FINW) Q4 2025 Earnings Call Transcript

- **Revenue Growth**: Q3 originations up 21% QoQ to $1.8B, driven by strategic partnerships.
- **Credit Enhanced Balances**: Surpassing prior guidance, reaching $115M by Q4 with Tallied contribution.
- **Margin Outlook**: Potential compression in Q4 due to bifurcation of Tallied revenue.
- **AI Adoption**: Exploring automation to reduce FTEs in compliance and risk functions.
- **Future Revenue**: Money rails and BIN opportunities expected to materialize in 2026.
- **Risk Management**: 15% concentration limit per program to mitigate exposure.


**【CEO Summary Section】**
- Reported strong Q3 results with loan originations of $1.8B, up 21% QoQ and 24% YoY, driven by strategic partnerships with DreamFi and Tallied Technologies.
- Credit enhanced balances reached $41M, exceeding prior guidance of $50M-$100M for Q4, with Tallied contributing $50M late in the quarter for a total of $115M.
- Emphasized disciplined expense management and focus on long-term value creation over short-term gains.

**【CFO Financial Commentary】**
- Net income rose to $4.9M (19% QoQ, 32% YoY), with EPS at $0.34, up from $0.29 QoQ.
- Net interest income increased to $18.6M (26% QoQ), driven by higher credit enhanced balances and strategic program loans.
- Efficiency ratio improved to 47.6% (from 59.5% prior quarter), excluding credit enhancement costs, reflecting strong revenue growth.
- Projected net interest margin may compress in Q4 due to bifurcation of revenue from Tallied into interest and fee income.

**【Q&A Highlights】**
- Credit enhancement programs capped at 15% per program to manage concentration risk.
- AI adoption in compliance and risk functions to automate processes and reduce FTEs.
- 2026 organic growth in credit enhanced balances expected at $8M-$10M/month, with potential upside from underperforming programs.
- Government shutdown impacts SBA lending but pipeline remains strong.
- Money rails and payments partnerships (e.g., DreamFi) expected to generate revenue in H2 2026, with BIN opportunities in the pipeline.
- Focus on lowering core efficiency ratio while maintaining risk reduction strategy.


FinWise Bancorp (FINW) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Q2 loan originations hit $1.5B (+27% YoY), driven by credit-enhanced and SBA programs.
- **Credit-enhanced Momentum**: Balances reached $12M, targeting $50-100M by year-end, with fee income directly tied to scale.
- **SBA Strength**: 7(a) originations up 140% YoY, reflecting small business confidence recovery.
- **AI and Efficiency**: Investing in AI for fraud detection and operational automation, targeting ROA >2% by 2027.
- **Risk Management**: NPA migration expected to moderate, with <10% of portfolio in higher-risk loans.

**【CEO Summary Section】**
- Q2 2025 revenue growth driven by $1.5B loan originations (+17% QoQ, +27% YoY), including strong performance from credit-enhanced and SBA programs.
- Credit-enhanced loan balances reached $12M by end of Q2, with target of $50-100M by year-end, contributing to interest income growth.
- SBA 7(a) originations up 24% QoQ and 140% YoY, reflecting small business confidence recovery.
- Gross margin expected to improve in 2H 2025 as higher-yielding loans (e.g., credit-enhanced) scale.
- Long-term strategy includes integrating AI into operations for efficiency gains and reducing cost of funds via payment products.

**【CFO Financial Commentary】**
- Net income: $4.1M ($0.29 EPS) vs. $3.3M ($0.23 EPS) prior quarter, driven by higher loan balances and fee income.
- Net interest margin: 7.81% (down 46bps QoQ) due to lower-yielding credit-enhanced loans and CD funding costs.
- Fee income: $10.3M (+32% QoQ) from credit-enhanced fees, strategic program fees, and loan sales gains.
- Noninterest expense: $14.9M (+4% QoQ) due to salary increases and benefits, but efficiency ratio improved to 59.5%.
- Provision for credit losses: $4.7M (up $1.4M QoQ) tied to credit-enhanced portfolio growth, fully offset by insurance recoveries.

**【Q&A Highlights】**
- **Credit-enhanced program scale**: Q2 ended with $12M in balances, targeting $50-100M by year-end. Fee income directly tied to balance growth.
- **Funding strategy**: Near-term reliance on 1-year CDs, long-term focus on lower-cost deposits from payment products.
- **AI adoption**: Focused on fraud detection, partner compliance automation, and operational efficiency, not customer acquisition.
- **Partner pipeline**: 2-3 new lending partners expected annually, with Bakkt program ramping up and 1-2 more signings by year-end.
- **2027 financial targets**: ROA >2%, ROE low-teens, driven by balance sheet growth and cost of funds reduction.
- **Risk management**: NPA migration expected to moderate as variable-rate SBA loans season, with <10% of portfolio in higher-risk loans.

FinWise Bancorp (FINW) Q2 2025 Earnings Call Transcript

- **Resilient Q1 Performance**: $1.3B loans originated, 2% TBV growth to $13.42, and NPLs down 18%. 
- **Strategic Expansion**: Bakkt partnership to add SME installment loans; credit-enhanced program targeting $50-100M growth. 
- **Challenges**: 170bps NIM decline to 8.27%, driven by seasonal high-yield loan softness. 
- **Efficiency Focus**: 65% efficiency ratio stable; deposit growth initiatives to reduce reliance on brokered funds. 
- **Risk Management**: 44% of portfolio in lower-risk held-for-sale loans; CRE loans at prime-100 with 60% LTV.

**【CEO Summary Section】**
- Loans originated totaled $1.3 billion, with asset growth and improved credit quality (NPLs down to $29.9M from $36.5M). 
- Tangible book value per share increased to $13.42, up 2% QoQ, with capital ratio at 22% (vs 23.3% at year-end). 
- Announced strategic partnership with Bakkt for SME installment loans and credit-enhanced balance sheet program expansion.

**【Bank CEO (Jim Noone) Key Points】**
- Originations from 2024 programs began contributing, though seasonal softness in high-yield partners impacted Q1. 
- SBA 7(a) originations stable but lower average loan size. Equipment leasing and CRE lines grew meaningfully. 
- 44% of portfolio in lower-risk held-for-sale loans (SBA guaranteed + strategic programs). 
- Provision for credit losses down 18% QoQ to $3.3M, driven by lower charge-offs ($2.2M vs $3.2M). 

**【CFO (Bob Wahlman) Financial Highlights】**
- Net income $3.2M ($0.23 EPS), vs $0.26 prior quarter. 
- NIM declined 170bps to 8.27% due to seasonal high-yield loan softness and lower-yield CRE/lease growth. 
- Fee income up 39% to $7.8M (strategic program fees, BFG fair value gains). 
- Non-interest expense up 5% to $14.3M (salary/FICA taxes, legal accruals). 
- Credit-enhanced balance sheet program target: $50-100M growth by year-end. 

**【Q&A Key Themes】**
1. Expense trends: 65% efficiency ratio stable; incremental headcount tied to production growth. 
2. Margin outlook: NII growth possible despite NIM decline, driven by seasonal recovery in high-yield loans. 
3. Credit-enhanced loans: Bakkt program to scale in Q4; current balance ~$2M, targeting $50-100M by year-end. 
4. CRE growth: Owner-occupied loans (avg LTV ~60%) growing via BFG referrals, despite narrower margins. 
5. Capital strategy: Maintain >14% leverage ratio; prioritize deposit growth via BIN sponsorship and online opening.

FinWise Bancorp (FINW)-30 Apr 25-2025 Q1 Earnings call transcript

- **Topline Growth**: FY24 originations up 16% to $5B, driven by program signings and strategic sales.
- **New Product Momentum**: 4 new programs launched in 2024; credit enhancement solutions to contribute meaningfully in 2025.
- **Credit Stability**: NPLs at $36.4M (38% government-guaranteed); portfolio management mitigates rate-driven risks.
- **2025 Outlook**: BIN sponsorship and payments to scale; 2-3 new programs expected to add incremental growth.

**【CEO Opening Remarks】**
- **2024 Q4 Financial Highlights**: Total originations reached $1.3B (Q4) and $5B (FY24), up 16% YoY. Key growth drivers include rebounding originations from existing programs and late-2024 program signings.
- **Strategic Program Expansion**: Added 4 new lending programs in 2024 (2 with credit enhancement, 1 payments, 1 credit card). 38% of staff dedicated to compliance/risk management.
- **2025 Outlook**: Credit enhancement solutions to be key growth driver; BIN sponsorship and payments initiatives expected to scale mid- to long-term.

**【President's Operational Update】**
- **SBA Lending Performance**: Q4 SBA originations increased sequentially; FY24 SBA guaranteed balances grew 1.5%. Gain on sale income boosted by strategic sales of SBA guaranteed portions.
- **Credit Quality Metrics**: Q4 provision for credit losses $3.9M (vs. $2.2M Q3), driven by $1M net charge-offs. Total NPLs $36.4M (19.2M government-guaranteed, 17.2M unguaranteed).
- **Pipeline Momentum**: 2-3 new lending programs expected in 2025; late-2024 signings to begin scaling Q2+2025. Revenue model diversification via credit enhancement, cards, and payments now visible in investor deck.

**【Balance Sheet & Risk Management】**
- 45% of portfolio in low-risk assets (SBA guaranteed, strategic program loans held-for-sale). Strict collateral policies mitigate credit risk exposure.
- Rate environment sensitivity: Higher rates may pressure NPLs ($12M potential Q1 migration), but portfolio management efforts reduced delinquency severity.


FinWise Bancorp (FINW)-30 Jan 25-2024 Q4 Earnings call transcript

FinWise Bancorp (FINW)-24 Oct 24-2024 Q3 Earnings call transcript

FinWise Bancorp (FINW)-25 Jul 24-2024 Q2 Earnings call transcript

FinWise Bancorp (FINW)-29 Apr 24-2024 Q1 Earnings call transcript

FinWise Bancorp (FINW)-29 Jan 24-2023 Q4 Earnings call transcript

FinWise Bancorp (FINW)-26 Oct 23-2023 Q3 Earnings call transcript

- **Revenue Growth**: $21.2M Q2 revenue, up 11.6% QoQ, driven by $1.2B loan originations (vs. $900M Q1).
- **Strategic Investment**: 10% BFG stake acquisition to strengthen SBA lending platform.
- **Credit Resilience**: NPL ratio stable at 0.3%, with provision coverage at 4.2%.
- **Share Buybacks**: $2.2M repurchased in Q2, with continued activity below $11.59 TBV.
- **Pipeline Expansion**: 2-3 new lending partners and BaaS products launching in H2 2023.

**【CEO Summary Section】**
- Q2 2023 revenue reached $21.2 million, driven by $1.2 billion in loan originations, with net income of $4.6 million (EPS: $0.35). 
- Despite strong quarter, outlook for loan originations remains cautious due to macroeconomic challenges and capital market tightness.
- Tangible book value per share increased to $11.59, with bank leverage ratio at 22.4%.
- Announced 10% equity stake acquisition in BFG (total 20%), aligning with long-term strategic goals.
- Emphasized disciplined credit underwriting and prudent capital management, including share buybacks below tangible book value.

**【Jim Noone - Credit Performance & Strategic Initiatives】**
- Non-performing loans (NPL) ratio remained stable at 0.3%, with provision for credit losses at $2.7 million.
- Efficiency ratio improved to 52.7%, reflecting cost discipline despite investments in growth infrastructure.
- Strategic program loan portfolio reduced by 25% over 12 months, focusing on risk-adjusted returns.
- Progress on Banking-as-a-Service (BaaS) initiatives, including debit/credit card issuance and payments hub, expected to launch in coming quarters.

**【Javvis Jacobson - Financial Highlights】**
- Net interest income grew 13% to $13.7 million, driven by loans held for investment and rising rates.
- Non-interest income declined 36% YoY to $5.3 million due to lower strategic program fees and retained SBA guarantees.
- Operating expenses increased 15% QoQ to $10 million, driven by bonus accruals tied to profitability.
- Share buyback of 269,690 shares ($2.2 million) executed, with continued focus on repurchasing below tangible book value.

**【Q&A Highlights】**
- **Origination Volatility**: Q2 outperformance attributed to single strategic partner; Q1 levels ($900M) seen as more sustainable.
- **Charge-Off Trends**: NCO rate improved to 3.4% (from 4.5% Q1), with SBA charge-offs offsetting strategic program reductions.
- **BFG Investment**: Strategic to deepen SBA lending partnership; financial impact minimal but long-term benefits emphasized.
- **Pipeline Visibility**: 2-3 new lending partners expected in H2, with BaaS products launching in next 1-2 quarters.

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