FinWise Bancorp (NASDAQ: FINW) (“FinWise” or the “Company”), parent
company of FinWise Bank (the “Bank”), today announced results for
the quarter ended June 30, 2024.
Second Quarter 2024 Highlights
- Loan originations were $1.2 billion, compared to $1.1
billion for the quarter ended March 31, 2024, and $1.2 billion
for the second quarter of the prior year
- Net interest income was $14.6 million, compared to $14.0
million for the quarter ended March 31, 2024, and $13.7
million for the second quarter of the prior year
- Net Income was $3.2 million, compared to $3.3 million for the
quarter ended March 31, 2024, and $4.6 million for the second
quarter of the prior year
- Diluted earnings per share (“EPS”) were $0.24 for the quarter,
compared to $0.25 for the quarter ended March 31, 2024, and
$0.35 for the second quarter of the prior year
- Efficiency ratio was 66.3%, compared to 60.6% for the quarter
ended March 31, 2024, and 52.7% for the second quarter of the
prior year (1)
- Annualized return on average equity (“ROAE”) was 7.9%, compared
to 8.4% in the quarter ended March 31, 2024, and 12.8% in the
second quarter of the prior year
- Nonperforming loans were $27.9 million as of June 30,
2024, compared to $26.0 million as of March 31, 2024, and $1.9
million as of the second quarter of the prior year of which $15.8
million, $14.8 million, and $1.1 million as of June 30,
2024, March 31, 2024, and June 30, 2023, respectively,
were guaranteed by the Small Business Administration (“SBA”).
(1) See “Reconciliation of Non-GAAP to GAAP Financial
Measures” for a reconciliation of this non-GAAP measure.
“FinWise delivered another strong quarter, driven by continued
growth in loan originations, solid revenue and stable credit
quality,” said Kent Landvatter, Chief Executive Officer of FinWise.
“These results highlight the strength and resiliency of our
existing business, as they do not include any benefit from recently
announced strategic partnerships and expansion strategies. Our team
has also delivered, ahead of schedule, on multiple initiatives,
including the launch of our first Payments partner, the start of
our Credit-Enhanced Balance Sheet program and the launch of our
first card product. Additionally, we remain on schedule to be
operational with our Payment Hub platform later this year. Looking
ahead, we remain excited about future growth opportunities and are
steadfastly committed to executing on our strategic goals to
further enhance value for our shareholders.”
| Selected Financial
Data |
|
|
|
|
|
| |
As of and For the Three Months Ended |
| ($ in thousands, except per
share amounts) |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
| |
|
|
|
|
|
|
Net Income |
$ |
3,180 |
|
|
$ |
3,315 |
|
|
$ |
4,638 |
|
| Diluted EPS |
$ |
0.24 |
|
|
$ |
0.25 |
|
|
$ |
0.35 |
|
| Return on average assets |
|
2.1 |
% |
|
|
2.2 |
% |
|
|
3.9 |
% |
| Return on average equity |
|
7.9 |
% |
|
|
8.4 |
% |
|
|
12.8 |
% |
| Yield on loans |
|
14.89 |
% |
|
|
14.80 |
% |
|
|
17.77 |
% |
| Cost of interest bearing
deposits |
|
4.80 |
% |
|
|
4.71 |
% |
|
|
4.02 |
% |
| Net interest margin |
|
10.31 |
% |
|
|
10.12 |
% |
|
|
12.14 |
% |
| Efficiency ratio(1) |
|
66.3 |
% |
|
|
60.6 |
% |
|
|
52.7 |
% |
| Tangible book value per
share(2) |
$ |
12.61 |
|
|
$ |
12.70 |
|
|
$ |
11.59 |
|
| Tangible shareholders’ equity
to tangible assets(2) |
|
26.8 |
% |
|
|
26.6 |
% |
|
|
29.7 |
% |
| Leverage Ratio (Bank under
CBLR) |
|
20.8 |
% |
|
|
20.6 |
% |
|
|
22.4 |
% |
| Full-time Equivalent
(FTEs) |
|
191 |
|
|
|
175 |
|
|
|
148 |
|
(1) This measure is not a
measure recognized under United States generally accepted
accounting principles, or GAAP, and is therefore considered to be a
non-GAAP financial measure. See “Reconciliation of Non-GAAP to GAAP
Financial Measures” for a reconciliation of this measure to its
most comparable GAAP measure. The efficiency ratio is defined as
total non-interest expense divided by the sum of net interest
income and non-interest income. The Company believes this measure
is important as an indicator of productivity because it shows the
amount of revenue generated for each dollar spent.(2)
Tangible shareholders’ equity to tangible assets is considered a
non-GAAP financial measure. Tangible shareholders’ equity is
defined as total shareholders’ equity less goodwill and other
intangible assets. The most directly comparable GAAP financial
measure is total shareholder’s equity to total assets. The Company
had no goodwill or other intangible assets at the end of any period
indicated. The Company has not considered loan servicing rights or
loan trailing fee assets as intangible assets for purposes of this
calculation. As a result, tangible shareholders’ equity is the same
as total shareholders’ equity at the end of each of the periods
indicated.
Net IncomeNet income was $3.2 million for the
second quarter of 2024, compared to $3.3 million for the first
quarter of 2024 and $4.6 million for the second quarter of 2023.
The decrease from the prior quarter was primarily due to increased
compensation cost driven by increased spending on business
infrastructure to support the payments and bank identification
number (“BIN”) initiatives and enhance governance and lower
non-interest income primarily resulting from acceleration of
servicing fee amortization due to increased early payoffs of SBA
loans. These were offset in part by an increase in net interest
income reflecting higher average balances and an increase in yields
on our held-for-sale loan portfolio, a decrease in the provision
for credit losses reflecting lower levels of charge-offs, and a
decrease in our effective tax rate. The decrease from the prior
year period was primarily due to increases in compensation expense
and other expenses driven by increased spending on business
infrastructure and was offset in part by increases in net interest
income driven by growth in the loans held for investment portfolio
as well as a reduction in tax expense reflecting the lower level of
pre-tax income.
Net Interest IncomeNet interest income was $14.6
million for the second quarter of 2024, compared to $14.0 million
for the first quarter of 2024 and $13.7 million for the second
quarter of 2023. The increase from the prior quarter was primarily
due to an increase in the loans held for investment portfolio and
an increase in the yield on our held-for-sale loan portfolio
partially offset by increases in the Bank’s average balances of,
and rates paid for, certificates of deposit. The increase from the
prior year period was primarily due to increases in the Bank’s
average balances for the loans held for investment portfolio,
partially offset by increased interest rates paid on deposits and
increased average interest-bearing deposit balances.
Loan originations totaled $1.2 billion for the second
quarter of 2024, compared to $1.1 billion for the prior quarter and
$1.2 billion for the prior year period. For the first three weeks
of July 2024, originations are tracking at approximately the same
level as the second quarter of 2024 originations.
Net interest margin for the second quarter of 2024 was 10.31%,
compared to 10.12% for the prior quarter and 12.14% for the prior
year period. The increase from the prior quarter is primarily
attributable to an increase in the loans held for investment
balance and higher yields on the loans held-for-sale portfolio,
partially offset by increases in the Bank’s average balances of,
and rates paid for, certificates of deposit. The decrease from the
prior year period was primarily due to decreases in the yields of
the loans held-for-sale and loans held for investment portfolios
reflecting the Bank’s efforts to increase loans outstanding to
borrowers with lower credit risk and lower average yields.
Provision for Credit LossesThe Company’s
provision for credit losses was $2.4 million for the second quarter
of 2024, compared to $3.2 million for the prior quarter and $2.7
million for the prior year period. The provision decreased when
compared to the prior quarter and the prior year period as the
Company experiences lower levels of charge offs. Nonperforming
assets have remained stable in the first half of 2024 when compared
to the increases experienced in the latter half of 2023.
Non-interest Income
| |
For the Three Months Ended |
| ($ in thousands) |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
| Non-interest income |
|
|
|
|
|
|
Strategic Program fees |
$ |
4,035 |
|
|
$ |
3,965 |
|
|
$ |
4,054 |
|
|
Gain on sale of loans |
|
356 |
|
|
|
415 |
|
|
|
700 |
|
|
SBA loan servicing fees and servicing asset amortization |
|
(124 |
) |
|
|
466 |
|
|
|
226 |
|
|
Change in fair value on investment in BFG |
|
(200 |
) |
|
|
(124 |
) |
|
|
— |
|
|
Other miscellaneous income |
|
771 |
|
|
|
742 |
|
|
|
308 |
|
| Total non-interest income |
$ |
4,838 |
|
|
$ |
5,464 |
|
|
$ |
5,288 |
|
| |
Non-interest income was $4.8 million for the second quarter of
2024, compared to $5.5 million for the prior quarter and $5.3
million for the prior year period. The decrease from the prior
quarter was primarily due to acceleration of servicing fee
amortization due to increased payoffs on higher rate SBA loans. The
decrease from the prior year period was related to a decrease in
income from the gain on sale of loans, and a decrease in the fair
value of our investment in BFG. Offsetting these decreases in part
were increases in Strategic Program fees as origination volume
increased, and other miscellaneous income related to rental income
on our commercial operating leases.
Non-interest Expense
| |
For the Three Months Ended |
| ($ in thousands) |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
| Non-interest expense |
|
|
|
|
|
|
Salaries and employee benefits |
$ |
8,609 |
|
|
$ |
7,562 |
|
|
$ |
6,681 |
|
|
Professional services |
|
1,282 |
|
|
|
1,567 |
|
|
|
1,305 |
|
|
Occupancy and equipment expenses |
|
1,121 |
|
|
|
980 |
|
|
|
718 |
|
|
Recovery of SBA servicing asset |
|
(328 |
) |
|
|
(198 |
) |
|
|
(339 |
) |
|
Other operating expenses |
|
2,206 |
|
|
|
1,896 |
|
|
|
1,634 |
|
| Total non-interest
expense |
$ |
12,890 |
|
|
$ |
11,807 |
|
|
$ |
9,999 |
|
| |
Non-interest expense was $12.9 million for the second
quarter of 2024, compared to $11.8 million for the prior quarter
and $10.0 million for the prior year period. The increase from
the prior quarter was primarily due to an increase in compensation
costs and other operating expenses as the Company continues to
build-out our business infrastructure for new business initiatives
and enhance our governance structure. The increase from the prior
year period was primarily due to an increase in salaries and
employee benefits and other operating expenses driven by increased
spending on business infrastructure along with an increase in
occupancy and equipment expenses reflecting the growth in our
business.
Reflecting the expenses incurred to develop our business
infrastructure, the Company’s efficiency ratio was 66.3% for the
second quarter of 2024, compared to 60.6% for the prior quarter and
52.7% for the prior year period. As a result of the infrastructure
build, the Company anticipates the efficiency ratio will remain
elevated until the Company begins to realize the revenues
associated with the new programs being developed.
Tax RateThe Company’s effective tax rate was 23.9% for the
second quarter of 2024, compared to 26.5% for the prior quarter and
26.1% for the prior year period. The decrease from the prior
quarter and prior year period was due primarily to more favorable
resolution of historical state tax matters.
Balance Sheet The Company’s total assets were $617.8 million as
of June 30, 2024, an increase from $610.8 million as of
March 31, 2024 and $495.6 million as of June 30, 2023.
The increase from March 31, 2024 was primarily due to
continued growth in the Company’s commercial leases, owner occupied
commercial real estate, and residential real estate loan
portfolios. The increase in total assets compared to June 30,
2023 was primarily due to increases in the Company’s SBA,
commercial leases, owner occupied commercial real estate and
consumer loan portfolios supported by a similar increase in
deposits and growth in equity from retained earnings. Also
contributing to the increase in total assets compared to the prior
year period was an increase in the Company’s investment in BFG.
The following table shows the gross loans held for investment
balances as of the dates indicated:
| |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
| ($ in thousands) |
Amount |
|
% of total loans |
|
Amount |
|
% of total loans |
|
Amount |
|
% of total loans |
|
SBA |
$ |
249,281 |
|
|
|
60.2 |
% |
|
$ |
247,810 |
|
|
|
63.4 |
% |
|
$ |
189,028 |
|
|
|
65.0 |
% |
|
Commercial leases |
|
56,529 |
|
|
|
13.7 |
% |
|
|
46,690 |
|
|
|
11.9 |
% |
|
|
22,109 |
|
|
|
7.6 |
% |
|
Commercial, non-real estate |
|
1,999 |
|
|
|
0.5 |
% |
|
|
2,077 |
|
|
|
0.5 |
% |
|
|
2,742 |
|
|
|
1.0 |
% |
|
Residential real estate |
|
42,317 |
|
|
|
10.2 |
% |
|
|
39,006 |
|
|
|
10.0 |
% |
|
|
30,378 |
|
|
|
10.5 |
% |
|
Strategic Program loans |
|
17,861 |
|
|
|
4.3 |
% |
|
|
17,216 |
|
|
|
4.4 |
% |
|
|
20,732 |
|
|
|
7.1 |
% |
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
Owner occupied |
|
28,340 |
|
|
|
6.8 |
% |
|
|
21,300 |
|
|
|
5.4 |
% |
|
|
9,926 |
|
|
|
3.4 |
% |
|
Non-owner occupied |
|
2,134 |
|
|
|
0.5 |
% |
|
|
2,155 |
|
|
|
0.6 |
% |
|
|
8,751 |
|
|
|
3.0 |
% |
|
Consumer |
|
15,880 |
|
|
|
3.8 |
% |
|
|
14,689 |
|
|
|
3.8 |
% |
|
|
6,993 |
|
|
|
2.4 |
% |
| Total period end loans |
$ |
414,341 |
|
|
|
100.0 |
% |
|
$ |
390,943 |
|
|
|
100.0 |
% |
|
$ |
290,659 |
|
|
|
100.0 |
% |
| |
Note: SBA loans as of June 30, 2024, March 31, 2024
and June 30, 2023 include $147.8 million, $141.7 million and
$85.5 million, respectively, of SBA 7(a) loan balances that are
guaranteed by the SBA. The held for investment balance on Strategic
Program loans with annual interest rates below 36% as of
June 30, 2024, March 31, 2024 and June 30, 2023 was
$2.6 million, $2.7 million and $5.5 million, respectively.
Total gross loans held for investment as of June 30, 2024
were $414.3 million, an increase from $390.9 million and $290.7
million as of March 31, 2024 and June 30, 2023,
respectively. The increase compared to March 31, 2024 was
primarily due to increases in the commercial leases, owner occupied
commercial real estate, and residential real estate loan
portfolios. The increase compared to June 30, 2023 was
primarily due to increases in the SBA 7(a), commercial leases,
commercial real estate owner occupied, residential real estate, and
consumer loan portfolios.
The following table shows the Company’s deposit composition as
of the dates indicated:
| |
As of |
|
|
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
| ($ in thousands) |
Amount |
|
Percent |
|
Amount |
|
Percent |
|
Amount |
|
Percent |
| Non-interest bearing demand
deposits |
$ |
107,083 |
|
|
|
24.9 |
% |
|
$ |
107,076 |
|
|
|
25.3 |
% |
|
$ |
93,347 |
|
|
|
28.1 |
% |
| Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
48,319 |
|
|
|
11.3 |
% |
|
|
48,279 |
|
|
|
11.4 |
% |
|
|
46,335 |
|
|
|
13.9 |
% |
|
Savings |
|
9,746 |
|
|
|
2.3 |
% |
|
|
11,206 |
|
|
|
2.6 |
% |
|
|
9,484 |
|
|
|
2.9 |
% |
|
Money market |
|
9,788 |
|
|
|
2.3 |
% |
|
|
9,935 |
|
|
|
2.3 |
% |
|
|
14,473 |
|
|
|
4.3 |
% |
|
Time certificates of deposit |
|
254,259 |
|
|
|
59.2 |
% |
|
|
247,600 |
|
|
|
58.4 |
% |
|
|
168,891 |
|
|
|
50.8 |
% |
| Total period end deposits |
$ |
429,195 |
|
|
|
100.0 |
% |
|
$ |
424,096 |
|
|
|
100.0 |
% |
|
$ |
332,530 |
|
|
|
100.0 |
% |
| |
Total deposits as of June 30, 2024 increased to $429.2
million from $424.1 million and $332.5 million as of March 31,
2024 and June 30, 2023, respectively. The increase from
March 31, 2024 was driven primarily by an increase in brokered
time certificates of deposits. The increase from June 30, 2023
was driven primarily by an increase in brokered time certificate of
deposits and non-interest bearing demand deposits. As of
June 30, 2024, 31.3% of deposits at the Bank level were
uninsured, compared to 32.4% as of March 31, 2024, and 36.3%
as of June 30, 2023. As of June 30, 2024, 7.6% of total
deposits at the Bank were required under the Company’s Strategic
Program agreements and an additional 8.6% were associated with
other accounts owned by the Company or the Bank.
Total shareholders’ equity as of June 30, 2024 increased
$3.3 million to $165.8 million from $162.5 million at
March 31, 2024. Compared to June 30, 2023, total
shareholders’ equity increased by $18.4 million from $147.4
million. The increase from March 31, 2024 was primarily due to
the Company’s net income. The increase from June 30, 2023 was
primarily due to the Company’s net income as well as the additional
capital issued in exchange for the Company’s increased ownership in
BFG, partially offset by the repurchase of common stock under the
Company’s repurchase program.
Bank Regulatory Capital RatiosThe following
table presents the leverage ratios for the Bank as of the dates
indicated as determined under the Community Bank Leverage Ratio
Framework of the Federal Deposit Insurance Corporation:
|
|
As of |
|
|
| Capital Ratios |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
|
Well-CapitalizedRequirement |
| Leverage Ratio |
20.8% |
|
20.6% |
|
22.4% |
|
9.0% |
|
|
The leverage ratio increase from the prior quarter resulted from
assets growing slower than earnings generated by operations. The
leverage ratio decrease from the prior year period resulted
primarily from the growth in the loan portfolio. The Bank’s capital
levels remain significantly above well-capitalized guidelines as of
June 30, 2024.
Share Repurchase ProgramAs of June 30,
2024, the Company has repurchased a total of 44,608 shares for $0.5
million under the Company’s share repurchase program announced in
March 2024.
Asset QualityNonperforming
loans were $27.9 million, or 6.5% of total loans receivable, as of
June 30, 2024, compared to $26.0 million or 6.6% of total
loans receivable, as of March 31, 2024 and $1.9 million, or
0.7% of total loans receivable as of June 30, 2023. Of the
$27.9 million, $26.0 million, and $1.9 million nonperforming loans
as of June 30, 2024, March 31, 2024, and June 30,
2023, respectively, $15.8 million, $14.8 million, and
$1.1 million, respectively, are guaranteed by the SBA and
$12.1 million, $11.2 million, and $0.7 million, respectively, is
the balance of loans which do not carry SBA guarantees. The
increase in nonperforming loans from the prior quarter was
primarily attributable to SBA 7(a) loans classified as
nonperforming during the quarter of which $1.3 million was
guaranteed by the SBA. The increase in nonperforming loans from the
prior year was primarily attributable to loans in the SBA 7(a) loan
portfolio being classified as non-accrual mainly due to the
negative impact of elevated interest rates on the Company’s small
business borrowers. The Company’s allowance for credit losses to
total loans held for investment was 3.2% as of June 30, 2024
compared to 3.2% as of March 31, 2024 and 4.2% as of
June 30, 2023. The decrease from the prior year was primarily
due to the Company’s increased retention of most of the originated
guaranteed portions in its SBA 7(a) loan program.
The Company’s net charge-offs were $1.9 million, $3.4 million
and $2.4 million for the quarters ended June 30, 2024,
March 31, 2024, and June 30, 2023, respectively. The
decrease for the quarter ended June 30, 2024 when compared to
the quarters ended March 31, 2024 and June 30, 2023 was
primarily due to decreased net charge-offs in the Strategic Program
loans portfolio.
The following table presents a summary of changes in the
allowance for credit losses and asset quality ratios for the
periods indicated:
|
|
For the Three Months Ended |
| ($ in thousands) |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
| Allowance for credit
losses: |
|
|
|
|
|
|
Beginning balance |
$ |
12,632 |
|
|
$ |
12,888 |
|
|
$ |
12,034 |
|
| Provision for credit
losses(1) |
|
2,393 |
|
|
|
3,145 |
|
|
|
2,675 |
|
| Charge
offs |
|
|
|
|
|
|
Residential real estate |
|
— |
|
|
|
(64 |
) |
|
|
(121 |
) |
|
Commercial real estate |
|
|
|
|
|
|
Owner occupied |
|
— |
|
|
|
(525 |
) |
|
|
— |
|
|
Commercial and industrial |
|
(184 |
) |
|
|
(54 |
) |
|
|
(66 |
) |
|
Consumer |
|
(18 |
) |
|
|
(41 |
) |
|
|
(19 |
) |
|
Lease financing receivables |
|
(69 |
) |
|
|
(111 |
) |
|
|
— |
|
|
Strategic Program loans |
|
(1,962 |
) |
|
|
(2,946 |
) |
|
|
(2,516 |
) |
|
Recoveries |
|
|
|
|
|
|
Residential real estate |
|
3 |
|
|
|
53 |
|
|
|
81 |
|
|
Commercial real estate |
|
|
|
|
|
|
Owner occupied |
|
— |
|
|
|
3 |
|
|
|
— |
|
|
Commercial and industrial |
|
15 |
|
|
|
— |
|
|
|
1 |
|
|
Consumer |
|
1 |
|
|
|
— |
|
|
|
— |
|
|
Lease financing receivables |
|
7 |
|
|
|
— |
|
|
|
— |
|
|
Strategic Program loans |
|
309 |
|
|
|
284 |
|
|
|
252 |
|
| Ending Balance |
$ |
13,127 |
|
|
$ |
12,632 |
|
|
$ |
12,321 |
|
| |
|
|
|
|
|
| Asset Quality
Ratios |
As of and For the Three Months Ended |
| ($ in thousands, annualized
ratios) |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
| Nonperforming loans(2) |
$ |
28,091 |
|
|
$ |
25,996 |
|
|
$ |
1,927 |
|
| Nonperforming loans to total
loans held for investment |
|
6.5 |
% |
|
|
6.6 |
% |
|
|
0.7 |
% |
| Net charge offs to average
loans held for investment |
|
1.9 |
% |
|
|
3.5 |
% |
|
|
3.4 |
% |
| Allowance for credit losses to
loans held for investment |
|
3.2 |
% |
|
|
3.2 |
% |
|
|
4.2 |
% |
|
Net charge offs |
$ |
1,898 |
|
|
$ |
3,401 |
|
|
$ |
2,388 |
|
(1) Excludes the provision for
unfunded commitments.(2) Nonperforming loans as of
June 30, 2024, March 31, 2024, and June 30, 2023
include $15.8 million, $14.8 million, and $1.1 million,
respectively, of SBA 7(a) loan balances that are guaranteed by the
SBA.
Webcast and Conference Call Information
FinWise will host a conference call today at 5:30 PM ET to
discuss its financial results for the second quarter of 2024. A
simultaneous audio webcast of the conference call will be available
on the Company’s investor relations section of the website at
https://investors.finwisebancorp.com/.
The dial-in number for the conference call is (877) 423-9813
(toll-free) or (201) 689-8573 (international). The conference ID is
13746967. Please dial the number 10 minutes prior to the scheduled
start time.
A webcast replay of the call will be available at
investors.finwisebancorp.com for six months following the call.
Website Information
The Company intends to use its website, www.finwisebancorp.com,
as a means of disclosing material non-public information and for
complying with its disclosure obligations under Regulation FD. Such
disclosures will be included in the Company’s website’s Investor
Relations section. Accordingly, investors should monitor the
Investor Relations portion of the Company’s website, in addition to
following its press releases, filings with the Securities and
Exchange Commission (“SEC”), public conference calls, and webcasts.
To subscribe to the Company’s e-mail alert service, please click
the “Email Alerts” link in the Investor Relations section of its
website and submit your email address. The information contained
in, or that may be accessed through, the Company’s website is not
incorporated by reference into or a part of this document or any
other report or document it files with or furnishes to the SEC, and
any references to the Company’s website are intended to be inactive
textual references only.
About FinWise Bancorp
FinWise Bancorp is a Utah bank holding company headquartered in
Murray, Utah which wholly owns FinWise Bank, a Utah chartered state
bank, and FinWise Investment LLC (together “FinWise). FinWise
provides Bank and Payments solutions to fintech brands. 2024 is a
key expansion year for the company as it expands and diversifies
its business model by launching and incorporating Payments Hub and
BIN Sponsorship offerings into its current platforms. FinWise’s
existing Strategic Program Lending business, done through scalable
API-driven infrastructure, powers deposit, lending and payments
programs for leading fintech brands. In addition, FinWise manages
other Lending programs such as SBA 7(a), Owner Occupied Real
Estate, and Leasing, which provides flexibility for disciplined
balance sheet growth. Through its compliance oversight and risk
management-first culture, the Company is well positioned to guide
fintechs through a rigorous process to facilitate regulatory
compliance. For more information about FinWise visit
https://investors.finwisebancorp.com.
Contacts
investors@finwisebank.commedia@finwisebank.com
"Safe Harbor" Statement Under the Private Securities
Litigation Reform Act of 1995
This release contains forward-looking statements made pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements reflect the
Company’s current views with respect to, among other things, future
events and its financial performance. These statements are often,
but not always, made through the use of words or phrases such as
“may,” “might,” “should,” “could,” “predict,” “potential,”
“believe,” “will likely result,” “expect,” “continue,” “will,”
“anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,”
“projection,” “forecast,” “budget,” “goal,” “target,” “would,”
“aim” and “outlook,” or the negative version of those words or
other comparable words or phrases of a future or forward-looking
nature. These forward-looking statements are not historical facts,
and are based on current expectations, estimates and projections
about the Company’s industry and management’s beliefs and certain
assumptions made by management, many of which, by their nature, are
inherently uncertain and beyond the Company’s control. The
inclusion of these forward-looking statements should not be
regarded as a representation by the Company or any other person
that such expectations, estimates and projections will be achieved.
Accordingly, the Company cautions you that any such forward-looking
statements are not guarantees of future performance and are subject
to risks, assumptions and uncertainties that are difficult to
predict. Although the Company believes that the expectations
reflected in these forward-looking statements are reasonable as of
the date made, actual results may prove to be materially different
from the results expressed or implied by the forward-looking
statements.
There are or will be important factors that could cause the
Company’s actual results to differ materially from those indicated
in these forward-looking statements, including, but not limited to,
the following: (a) the success of the financial technology
industry, as well as the continued evolution of the regulation of
this industry; (b) the ability of the Company’s Strategic Program
or Fintech Banking Solutions service providers to comply with
regulatory regimes, and the Company’s ability to adequately oversee
and monitor its Strategic Program and Fintech Banking Solutions
service providers; (c) the Company’s ability to maintain and grow
its relationships with its service providers; (d) changes in the
laws, rules, regulations, interpretations or policies relating to
financial institutions, accounting, tax, trade, monetary and fiscal
matters, including the application of interest rate caps or
maximums; (e) the Company’s ability to keep pace with rapid
technological changes in the industry or implement new technology
effectively; (f) system failure or cybersecurity breaches of the
Company’s network security; (g) potential exposure to fraud,
negligence, computer theft and cyber-crime and other disruptions in
the Company’s computer systems relating to its development and use
of new technology platforms; (h) the Company’s reliance on
third-party service providers for core systems support,
informational website hosting, internet services, online account
opening and other processing services; (i) general economic and
business conditions, either nationally or in the Company’s market
areas; (j) increased national or regional competition in the
financial services industry; (k) the Company’s ability to measure
and manage its credit risk effectively and the potential
deterioration of the business and economic conditions in the
Company’s primary market areas; (l) the adequacy of the Company’s
risk management framework; (m) the adequacy of the Company’s
allowance for credit losses (“ACL”); (n) the financial soundness of
other financial institutions; (o) new lines of business or new
products and services; (p) changes in Small Business Administration
(“SBA”) rules, regulations and loan products, including
specifically the Section 7(a) program or changes to the status of
the Bank as an SBA Preferred Lender; (q) the value of collateral
securing the Company’s loans; (r) the Company’s levels of
nonperforming assets; (s) losses from loan defaults; (t) the
Company’s ability to protect its intellectual property and the
risks it faces with respect to claims and litigation initiated
against the Company; (u) the Company’s ability to implement its
growth strategy; (v) the Company’s ability to launch new products
or services successfully; (w) the concentration of the Company’s
lending and depositor relationships through Strategic Programs in
the financial technology industry generally; (x) interest-rate and
liquidity risks; (y) the effectiveness of the Company’s internal
control over financial reporting and its ability to remediate any
future material weakness in its internal control over financial
reporting; (z) dependence on our management team and changes in
management composition; (aa) the sufficiency of the Company’s
capital; (bb) compliance with laws and regulations, supervisory
actions, the Dodd-Frank Act, capital requirements, the Bank Secrecy
Act and other anti-money laundering laws, predatory lending laws,
and other statutes and regulations; (cc) results of examinations of
the Company by its regulators; (dd) the Company’s involvement from
time to time in legal proceedings; (ee) natural disasters and
adverse weather, acts of terrorism, pandemics, an outbreak of
hostilities or other international or domestic calamities, and
other matters beyond the Company’s control; (ff) future equity and
debt issuances; (gg) that the anticipated benefits new lines of
business that the Company may enter or investments or acquisitions
the Company may make are not realized within the expected time
frame or at all as a result of such things as the strength or
weakness of the economy and competitive factors in the areas where
the Company and such other businesses operate; and (hh) other
factors listed from time to time in the Company’s filings with the
Securities and Exchange Commission, including, without limitation,
its Annual Report on Form 10-K for the year ended December 31,
2023 and subsequent reports on Form 10-Q and Form 8-K. The timing
and amount of purchases under the Company’s share repurchase
program will be determined by management based upon market
conditions and other factors. Purchases may be made pursuant to a
program adopted under Rule 10b5-1 under the Securities Exchange Act
of 1934, as amended. The program does not require the Company to
purchase any specific number or amount of shares and may be
suspended or reinstated at any time at the Company’s discretion and
without notice.
Any forward-looking statement speaks only as of the date of this
release, and the Company does not undertake any obligation to
publicly update or review any forward-looking statement, whether
because of new information, future developments or otherwise,
except as required by law. New risks and uncertainties may emerge
from time to time, and it is not possible for the Company to
predict their occurrence. In addition, the Company cannot assess
the impact of each risk and uncertainty on its business or the
extent to which any risk or uncertainty, or combination of risks
and uncertainties, may cause actual results to differ materially
from those contained in any forward-looking statements.
FINWISE BANCORP CONSOLIDATED STATEMENTS
OF FINANCIAL CONDITION($ in thousands;
Unaudited)
| |
As of |
| |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
| ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
|
Cash and due from banks |
$ |
5,158 |
|
|
$ |
3,944 |
|
|
$ |
369 |
|
|
Interest-bearing deposits |
|
83,851 |
|
|
|
111,846 |
|
|
|
118,674 |
|
|
Total cash and cash equivalents |
|
89,009 |
|
|
|
115,790 |
|
|
|
119,043 |
|
|
Investment securities held-to-maturity, at cost |
|
13,942 |
|
|
|
14,820 |
|
|
|
14,403 |
|
|
Investment in Federal Home Loan Bank (“FHLB”) stock, at cost |
|
349 |
|
|
|
349 |
|
|
|
476 |
|
|
Strategic Program loans held-for-sale, at lower of cost or fair
value |
|
66,542 |
|
|
|
54,947 |
|
|
|
42,362 |
|
|
Loans receivable, net |
|
398,512 |
|
|
|
377,101 |
|
|
|
277,663 |
|
|
Premises and equipment, net |
|
15,665 |
|
|
|
15,098 |
|
|
|
13,154 |
|
|
Accrued interest receivable |
|
3,390 |
|
|
|
3,429 |
|
|
|
2,316 |
|
|
SBA servicing asset, net |
|
3,689 |
|
|
|
4,072 |
|
|
|
5,233 |
|
|
Investment in Business Funding Group (“BFG”), at fair value |
|
8,000 |
|
|
|
8,200 |
|
|
|
4,500 |
|
|
Operating lease right-of-use (“ROU”) assets |
|
3,913 |
|
|
|
4,104 |
|
|
|
4,668 |
|
|
Income tax receivable, net |
|
2,103 |
|
|
|
2,400 |
|
|
|
2,355 |
|
|
Other assets |
|
12,706 |
|
|
|
10,523 |
|
|
|
9,452 |
|
|
Total assets |
$ |
617,820 |
|
|
$ |
610,833 |
|
|
$ |
495,625 |
|
|
|
|
|
|
|
|
| LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
Non-interest bearing |
$ |
107,083 |
|
|
$ |
107,076 |
|
|
$ |
93,347 |
|
|
Interest bearing |
|
322,112 |
|
|
|
317,020 |
|
|
|
239,183 |
|
|
Total deposits |
|
429,195 |
|
|
|
424,096 |
|
|
|
332,530 |
|
|
Accrued interest payable |
|
601 |
|
|
|
588 |
|
|
|
466 |
|
|
Income taxes payable, net |
|
— |
|
|
|
3,207 |
|
|
|
— |
|
|
Deferred taxes, net |
|
1,154 |
|
|
|
508 |
|
|
|
140 |
|
|
PPP Liquidity Facility |
|
127 |
|
|
|
158 |
|
|
|
252 |
|
|
Operating lease liabilities |
|
5,788 |
|
|
|
6,046 |
|
|
|
6,792 |
|
|
Other liabilities |
|
15,159 |
|
|
|
13,748 |
|
|
|
7,997 |
|
| Total
liabilities |
|
452,024 |
|
|
|
448,351 |
|
|
|
348,177 |
|
| |
|
|
|
|
|
| Shareholders’
equity |
|
|
|
|
|
|
Common Stock |
|
13 |
|
|
|
13 |
|
|
|
13 |
|
|
Additional paid-in-capital |
|
55,441 |
|
|
|
55,304 |
|
|
|
52,625 |
|
|
Retained earnings |
|
110,342 |
|
|
|
107,165 |
|
|
|
94,810 |
|
| Total shareholders’
equity |
|
165,796 |
|
|
|
162,482 |
|
|
|
147,448 |
|
| Total liabilities and
shareholders’ equity |
$ |
617,820 |
|
|
$ |
610,833 |
|
|
$ |
495,625 |
|
FINWISE BANCORPCONSOLIDATED STATEMENTS
OF INCOME ($ in thousands, except per share
amounts; Unaudited)
| |
For the Three Months Ended |
| |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
| Interest
income |
|
|
|
|
|
|
Interest and fees on loans |
$ |
16,881 |
|
|
$ |
16,035 |
|
|
$ |
14,355 |
|
|
Interest on securities |
|
97 |
|
|
|
101 |
|
|
|
77 |
|
|
Other interest income |
|
1,444 |
|
|
|
1,509 |
|
|
|
1,437 |
|
| Total interest income |
|
18,422 |
|
|
|
17,645 |
|
|
|
15,869 |
|
| |
|
|
|
|
|
| Interest
expense |
|
|
|
|
|
|
Interest on deposits |
|
3,807 |
|
|
|
3,639 |
|
|
|
2,194 |
|
|
Total interest expense |
|
3,807 |
|
|
|
3,639 |
|
|
|
2,194 |
|
| Net interest
income |
|
14,615 |
|
|
|
14,006 |
|
|
|
13,675 |
|
| |
|
|
|
|
|
| Provision for credit
losses |
|
2,385 |
|
|
|
3,154 |
|
|
|
2,688 |
|
| Net interest income after
provision for credit losses |
|
12,230 |
|
|
|
10,852 |
|
|
|
10,987 |
|
| |
|
|
|
|
|
| Non-interest
income |
|
|
|
|
|
|
Strategic Program fees |
|
4,035 |
|
|
|
3,965 |
|
|
|
4,054 |
|
|
Gain on sale of loans, net |
|
356 |
|
|
|
415 |
|
|
|
700 |
|
|
SBA loan servicing fees and servicing asset amortization |
|
(124 |
) |
|
|
466 |
|
|
|
226 |
|
|
Change in fair value on investment in BFG |
|
(200 |
) |
|
|
(124 |
) |
|
|
— |
|
|
Other miscellaneous income |
|
771 |
|
|
|
742 |
|
|
|
308 |
|
|
Total non-interest income |
|
4,838 |
|
|
|
5,464 |
|
|
|
5,288 |
|
| |
|
|
|
|
|
| Non-interest
expense |
|
|
|
|
|
|
Salaries and employee benefits |
|
8,609 |
|
|
|
7,562 |
|
|
|
6,681 |
|
|
Professional services |
|
1,282 |
|
|
|
1,567 |
|
|
|
1,305 |
|
|
Occupancy and equipment expenses |
|
1,121 |
|
|
|
980 |
|
|
|
718 |
|
|
Recovery of SBA servicing asset |
|
(328 |
) |
|
|
(198 |
) |
|
|
(339 |
) |
|
Other operating expenses |
|
2,206 |
|
|
|
1,896 |
|
|
|
1,634 |
|
|
Total non-interest expense |
|
12,890 |
|
|
|
11,807 |
|
|
|
9,999 |
|
| Income before income
tax expense |
|
4,178 |
|
|
|
4,509 |
|
|
|
6,276 |
|
| |
|
|
|
|
|
| Provision for income
taxes |
|
998 |
|
|
|
1,194 |
|
|
|
1,638 |
|
| Net
income |
$ |
3,180 |
|
|
$ |
3,315 |
|
|
$ |
4,638 |
|
| |
|
|
|
|
|
| Earnings per share, basic |
$ |
0.25 |
|
|
$ |
0.26 |
|
|
$ |
0.36 |
|
| Earnings per share,
diluted |
$ |
0.24 |
|
|
$ |
0.25 |
|
|
$ |
0.35 |
|
| |
|
|
|
|
|
| Weighted average shares
outstanding, basic |
|
12,627,800 |
|
|
|
12,502,448 |
|
|
|
12,603,463 |
|
| Weighted average shares
outstanding, diluted |
|
13,109,708 |
|
|
|
13,041,605 |
|
|
|
12,989,530 |
|
| Shares outstanding at end of
period |
|
13,143,560 |
|
|
|
12,793,555 |
|
|
|
12,723,703 |
|
FINWISE BANCORPAVERAGE BALANCES,
YIELDS, AND RATES ($ in thousands;
Unaudited)
|
|
For the Three Months Ended |
|
|
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
|
|
Average Balance |
|
Interest |
|
Average Yield/Rate |
|
Average Balance |
|
Interest |
|
Average Yield/Rate |
|
Average Balance |
|
Interest |
|
Average Yield/Rate |
| Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing deposits |
$ |
105,563 |
|
|
$ |
1,444 |
|
|
|
5.50 |
% |
|
$ |
111,911 |
|
|
$ |
1,509 |
|
|
|
5.42 |
% |
|
$ |
113,721 |
|
|
$ |
1,437 |
|
|
|
5.07 |
% |
|
Investment securities |
|
14,795 |
|
|
|
97 |
|
|
|
2.65 |
% |
|
|
15,174 |
|
|
|
101 |
|
|
|
2.67 |
% |
|
|
14,137 |
|
|
|
77 |
|
|
|
2.19 |
% |
|
Strategic Program loans held for sale |
|
49,000 |
|
|
|
4,020 |
|
|
|
33.00 |
% |
|
|
48,557 |
|
|
|
3,726 |
|
|
|
30.86 |
% |
|
|
41,390 |
|
|
|
3,860 |
|
|
|
37.41 |
% |
|
Loans held for investment |
|
400,930 |
|
|
|
12,861 |
|
|
|
12.90 |
% |
|
|
381,195 |
|
|
|
12,309 |
|
|
|
12.99 |
% |
|
|
282,686 |
|
|
|
10,495 |
|
|
|
14.89 |
% |
|
Total interest earning assets |
|
570,287 |
|
|
|
18,422 |
|
|
|
12.99 |
% |
|
|
556,837 |
|
|
|
17,645 |
|
|
|
12.74 |
% |
|
|
451,934 |
|
|
|
15,869 |
|
|
|
14.08 |
% |
| Non-interest earning
assets |
|
46,531 |
|
|
|
|
|
|
|
39,123 |
|
|
|
|
|
|
|
21,825 |
|
|
|
|
|
| Total assets |
$ |
616,818 |
|
|
|
|
|
|
$ |
595,960 |
|
|
|
|
|
|
$ |
473,759 |
|
|
|
|
|
| Interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
$ |
47,900 |
|
|
$ |
441 |
|
|
|
3.70 |
% |
|
$ |
51,603 |
|
|
$ |
503 |
|
|
|
3.92 |
% |
|
$ |
44,097 |
|
|
$ |
426 |
|
|
|
3.88 |
% |
|
Savings |
|
10,270 |
|
|
|
19 |
|
|
|
0.75 |
% |
|
|
9,301 |
|
|
|
19 |
|
|
|
0.83 |
% |
|
|
7,334 |
|
|
|
10 |
|
|
|
0.56 |
% |
|
Money market accounts |
|
9,565 |
|
|
|
112 |
|
|
|
4.71 |
% |
|
|
10,200 |
|
|
|
66 |
|
|
|
2.60 |
% |
|
|
13,982 |
|
|
|
109 |
|
|
|
3.12 |
% |
|
Certificates of deposit |
|
251,142 |
|
|
|
3,235 |
|
|
|
5.18 |
% |
|
|
239,577 |
|
|
|
3,051 |
|
|
|
5.12 |
% |
|
|
153,662 |
|
|
|
1,649 |
|
|
|
4.30 |
% |
|
Total deposits |
|
318,877 |
|
|
|
3,807 |
|
|
|
4.80 |
% |
|
|
310,681 |
|
|
|
3,639 |
|
|
|
4.71 |
% |
|
|
219,075 |
|
|
|
2,194 |
|
|
|
4.02 |
% |
|
Other borrowings |
|
142 |
|
|
|
— |
|
|
|
0.35 |
% |
|
|
172 |
|
|
|
— |
|
|
|
0.35 |
% |
|
|
267 |
|
|
|
— |
|
|
|
0.35 |
% |
|
Total interest bearing liabilities |
|
319,019 |
|
|
|
3,807 |
|
|
|
4.80 |
% |
|
|
310,853 |
|
|
|
3,639 |
|
|
|
4.71 |
% |
|
|
219,342 |
|
|
|
2,194 |
|
|
|
4.01 |
% |
| Non-interest bearing
deposits |
|
108,519 |
|
|
|
|
|
|
|
100,507 |
|
|
|
|
|
|
|
95,257 |
|
|
|
|
|
| Non-interest bearing
liabilities |
|
27,700 |
|
|
|
|
|
|
|
25,446 |
|
|
|
|
|
|
|
14,206 |
|
|
|
|
|
| Shareholders’ equity |
|
161,580 |
|
|
|
|
|
|
|
159,154 |
|
|
|
|
|
|
|
144,954 |
|
|
|
|
|
| Total liabilities and
shareholders’ equity |
$ |
616,818 |
|
|
|
|
|
|
$ |
595,960 |
|
|
|
|
|
|
$ |
473,759 |
|
|
|
|
|
| Net interest income and
interest rate spread |
|
|
$ |
14,615 |
|
|
|
8.19 |
% |
|
|
|
$ |
14,006 |
|
|
|
8.03 |
% |
|
|
|
$ |
13,675 |
|
|
|
10.07 |
% |
| Net interest margin |
|
|
|
|
|
10.31 |
% |
|
|
|
|
|
|
10.12 |
% |
|
|
|
|
|
|
12.14 |
% |
| Ratio of average
interest-earning assets to average interest- bearing
liabilities |
|
|
|
|
|
178.76 |
% |
|
|
|
|
|
|
179.13 |
% |
|
|
|
|
|
|
206.04 |
% |
FINWISE BANCORPSELECTED HISTORICAL
CONSOLIDATED FINANCIAL AND OTHER DATA ($ in
thousands, except per share amounts; Unaudited)
| |
As of and for the Three Months Ended |
| |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
|
Selected Loan Metrics |
|
|
|
|
|
|
Amount of loans originated |
$ |
1,170,904 |
|
|
$ |
1,091,479 |
|
|
$ |
1,156,141 |
|
|
Selected Income Statement Data |
|
|
|
|
|
|
Interest income |
$ |
18,422 |
|
|
$ |
17,645 |
|
|
$ |
15,869 |
|
|
Interest expense |
|
3,807 |
|
|
|
3,639 |
|
|
|
2,194 |
|
| Net interest income |
|
14,615 |
|
|
|
14,006 |
|
|
|
13,675 |
|
|
Provision for credit losses |
|
2,385 |
|
|
|
3,154 |
|
|
|
2,688 |
|
|
Net interest income after provision for credit losses |
|
12,230 |
|
|
|
10,852 |
|
|
|
10,987 |
|
|
Non-interest income |
|
4,838 |
|
|
|
5,464 |
|
|
|
5,288 |
|
|
Non-interest expense |
|
12,890 |
|
|
|
11,807 |
|
|
|
9,999 |
|
|
Provision for income taxes |
|
998 |
|
|
|
1,194 |
|
|
|
1,638 |
|
| Net income |
|
3,180 |
|
|
|
3,315 |
|
|
|
4,638 |
|
|
Selected Balance Sheet Data |
|
|
|
|
|
|
Total Assets |
$ |
617,820 |
|
|
$ |
610,833 |
|
|
$ |
495,625 |
|
| Cash and cash equivalents |
|
89,009 |
|
|
|
115,790 |
|
|
|
119,043 |
|
|
Investment securities held-to-maturity, at cost |
|
13,942 |
|
|
|
14,820 |
|
|
|
14,403 |
|
|
Loans receivable, net |
|
398,512 |
|
|
|
377,101 |
|
|
|
277,663 |
|
|
Strategic Program loans held-for-sale, at lower of cost or fair
value |
|
66,542 |
|
|
|
54,947 |
|
|
|
42,362 |
|
|
SBA servicing asset, net |
|
3,689 |
|
|
|
4,072 |
|
|
|
5,233 |
|
|
Investment in Business Funding Group, at fair value |
|
8,000 |
|
|
|
8,200 |
|
|
|
4,500 |
|
|
Deposits |
|
429,195 |
|
|
|
424,096 |
|
|
|
332,530 |
|
| Total shareholders'
equity |
|
165,796 |
|
|
|
162,482 |
|
|
|
147,448 |
|
| Tangible shareholders’
equity(1) |
|
165,796 |
|
|
|
162,482 |
|
|
|
147,448 |
|
|
Share and Per Share Data |
|
|
|
|
|
|
Earnings per share - basic |
$ |
0.25 |
|
|
$ |
0.26 |
|
|
$ |
0.36 |
|
|
Earnings per share - diluted |
$ |
0.24 |
|
|
$ |
0.25 |
|
|
$ |
0.35 |
|
|
Book value per share |
$ |
12.61 |
|
|
$ |
12.70 |
|
|
$ |
11.59 |
|
|
Tangible book value per share(1) |
$ |
12.61 |
|
|
$ |
12.70 |
|
|
$ |
11.59 |
|
|
Weighted avg outstanding shares - basic |
|
12,627,800 |
|
|
|
12,502,448 |
|
|
|
12,603,463 |
|
|
Weighted avg outstanding shares - diluted |
|
13,109,708 |
|
|
|
13,041,605 |
|
|
|
12,989,530 |
|
| Shares outstanding at end of
period |
|
13,143,560 |
|
|
|
12,793,555 |
|
|
|
12,723,703 |
|
|
Capital Ratios |
|
|
|
|
|
|
Total shareholders' equity to total assets |
|
26.8 |
% |
|
|
26.6 |
% |
|
|
29.7 |
% |
|
Tangible shareholders’ equity to tangible assets(1) |
|
26.8 |
% |
|
|
26.6 |
% |
|
|
29.7 |
% |
|
Leverage Ratio (Bank under CBLR) |
|
20.8 |
% |
|
|
20.6 |
% |
|
|
22.4 |
% |
(1) Tangible shareholders’
equity to tangible assets is considered a non-GAAP financial
measure. Tangible shareholders’ equity is defined as total
shareholders’ equity less goodwill and other intangible assets. The
most directly comparable GAAP financial measure is total
shareholder’s equity to total assets. The Company had no goodwill
or other intangible assets at the end of any period indicated. The
Company has not considered loan servicing rights or loan trailing
fee assets as intangible assets for purposes of this calculation.
As a result, tangible shareholders’ equity is the same as total
shareholders’ equity at the end of each of the periods
indicated.
Reconciliation of Non-GAAP to GAAP Financial
Measures
| Efficiency
ratio |
Three Months Ended |
| |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
| ($ in thousands) |
|
|
|
|
|
|
Non-interest expense |
$ |
12,890 |
|
|
$ |
11,807 |
|
|
$ |
9,999 |
|
| |
|
|
|
|
|
| Net interest income |
|
14,615 |
|
|
|
14,006 |
|
|
|
13,675 |
|
| Total non-interest income |
|
4,838 |
|
|
|
5,464 |
|
|
|
5,288 |
|
|
Adjusted operating revenue |
$ |
19,453 |
|
|
$ |
19,470 |
|
|
$ |
18,963 |
|
| Efficiency ratio |
|
66.3 |
% |
|
|
60.6 |
% |
|
|
52.7 |
% |
FinWise Bancorp (NASDAQ:FINW)
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FinWise Bancorp (NASDAQ:FINW)
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