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- **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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

FINW

FINW fundamentals

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