FinWise Bancorp (FINW) Market Cap
FinWise Bancorp has a market capitalization of $221.3M.
Financials based on reported quarter end 2025-12-31
Price: $16.18
▼ -0.21 (-1.28%)
Market Cap: 221.29M
NASDAQ · time unavailable
CEO: James F. Noone
Sector: Financial Services
Industry: Banks - Regional
IPO Date: 2021-11-19
Website: https://www.finwisebancorp.com
FinWise Bancorp (FINW) - Company Information
Market Cap: 221.29M · Sector: Financial Services
FinWise Bancorp operates as the bank holding company for FinWise Bank that provides various banking products and services to individual and corporate customers. It offers various deposit products, including interest and noninterest bearing demand, NOW, money market, and checking and savings accounts, as well as time deposits and certificates of deposits. The company also provides small business administration, residential and commercial real estate, consumer, and commercial non-real estate loans. In addition, it offers debit cards, remote deposit capture, online banking, mobile banking, and direct deposit services; and cash management and treasury services. The company operates one full-service banking location in Sandy, Utah; and a loan production office in Rockville Centre, New York. FinWise Bancorp was founded in 1999 and is headquartered in Murray, Utah.
Analyst Sentiment
Based on 2 ratings
Analyst 1Y Forecast: $0.00
Average target (based on 2 sources)
Consensus Price Target
Low
$18
Median
$20
High
$21
Average
$20
Potential Upside: 20.5%
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"FINW reported revenue of $52.5M and a net income of $3.915M for the fiscal year ending December 31, 2025. With total assets of $977.135M and total liabilities of $783.94M, the company maintains a solid equity base of $193.195M and a net debt position of -$7.674M, indicating it has more cash than debt. However, the company's operating cash flow, capital expenditures, and free cash flow are all at $0, which raises concerns about cash generation capabilities. With a market price of $15.71, FINW has experienced a decline in stock performance, with a 1-year change of -10.43%. No dividends have been issued, and shareholder returns from buybacks are also absent. The current valuation target consensus is $19.5, suggesting potential upside, although price performance has not been favorable recently. This mixed picture presents both challenges and opportunities for potential investors, particularly in light of the company's growth and profitability metrics."
Revenue Growth
Stable revenue of $52.5M shows potential for growth.
Profitability
Net income of $3.915M indicates modest profitability.
Cash Flow Quality
Zero cash flow from operations raises red flags.
Leverage & Balance Sheet
Strong balance sheet with positive equity and minimal debt.
Shareholder Returns
No dividends or buybacks reported; poor shareholder returns.
Analyst Sentiment & Valuation
Target price suggests potential upside despite current underperformance.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Management delivered upbeat long-term messaging (26% net income growth in 2025; credit-enhanced momentum; improving NIM), but the Q&A exposed near-term operational pressure. The single biggest candid issue was the “refinement” of SBA servicing/administration standards: full re-underwriting at deferment request (plus higher borrower thresholds) accelerated NCO recognition and increased Q4 net charge-offs to $6.7M (from $3.1M), driving an after-tax provision drag of $1.1M (~8¢/share) described as onetime. Analysts also probed timing rather than demand: SBA origination weakness reflected shutdown/staffing-driven processing delays (demand still solid; closings improved in January). BIN/payment ramp remains confident but is delayed beyond initial expectations, with funding concentration limits smoothing impact only “this year” and pushing more benefit to “next year.” Net-net: durable strategy persists, but near-term earnings optics were dominated by servicing-driven credit timing and regulatory-process disruptions.
Growth Catalysts
- Loan originations of $1.6B in Q4 exceeded $1.4B guidance; full-year 2025 originations $6.1B (+22% YoY)
- Credit-enhanced product uptake ended Q4 with $118M balances, above $115M outlook (from 3Q) and above initial $50M–$100M guidance
- Net interest margin improved to 11.42% from 9.01% sequentially (driven by $76.5M credit-enhanced balance growth)
- Noninterest income increased to $22.3M from $18.0M (credit enhancement income up; strategic program fees down due to lower origination volume)
Business Development
- DreamFi launched (startup fintech for underbanked communities); announced last quarter and officially launched in Q4
- MoneyRails payments optimizer: used by partners for salary deduction repayments on FinWise-originated loans and to fund transactions via RTP and FedNow
- BIN/payments momentum remains, but timing is pushed beyond initial expectations (partner funding timing constrained by concentration limits and deposits replacement timing)
- 15 lending partners; contracts generally 3–4 year initial terms with two-year renewals; no notable renewal concerns flagged
Financial Highlights
- Net income: $3.9M in Q4; diluted EPS: $0.27
- Net charge-offs: $6.7M in Q4 vs $3.1M prior quarter (Q4 included $1.5M attributable to credit-enhanced program)
- Provision for loan losses: $17.7M in Q4 vs $12.8M prior quarter (increase driven by growth in credit-enhanced portfolio and higher NCOs from updated servicing standards)
- Net interest income: $24.6M vs $18.6M prior quarter; NIM: 11.42% vs 9.01% (credit-enhanced balance growth of $76.5M a key driver)
- Noninterest expense: $23.7M vs $17.4M prior quarter; efficiency ratio: 50.5% vs 47.6% (increase driven by credit enhancement guarantee and servicing expenses)
- Core portfolio earnings hit from servicing refinement: after-tax negative impact of $1.1M (~8¢ per share) described as onetime; management said related Q4 provision/charge-offs from the servicing change should be treated as one-time
- NPL migration: net increase to NPL balance < $1M; total NPL $43.7M at quarter-end (guidance referenced earlier: $10M–$12M could migrate to NPL in Q4)
- SBA seven Watchlist/special mention migration to classified status drove most of the NPL migration; disposal of collateral helped keep migration below the higher-end guide
Capital Funding
- No explicit buyback/debt amounts disclosed in the transcript
- Deposit/financing pressure: broker deposits replaced only within concentration limits; deposit timing affected by strategic partners depositing collateral funds at period-end
Strategy & Ops
- Refined servicing and administrative standards for SBA: required full re-underwriting at time of deferment request (instead of allowing a single 3- or 6-month deferment under prior SBA-guideline-following procedures)
- Accelerated classification of certain loans to nonperforming status and earlier recognition of charge-offs due to servicing standard changes
- Borrower threshold changes increased borrower thresholds required to qualify for a one-time short-term deferment
- SBA production operations impacted by staffing cuts: extended SBA processing delays and additional impact from government shutdown; later improved after reopening in November
- Expense planning: CFO cited ~$16M quarterly run-rate for non-credit-enhanced operating expenses entering 2026; expectation that revenues grow ~2x faster than expenses for positive operating leverage
Market Outlook
- Q1 2026 origination run-rate: ~$1.4B per quarter based on first four weeks of January
- Full-year 2026 originations: baseline $1.4B quarterly originations annualized, plus 5% growth factor (seasonality normalized for student lending)
- Credit-enhanced balances: organic growth of $8M–$10M per month during 2026 (noted possible variability/lumpiness by month)
- Quarterly net charge-offs (non-credit-enhanced): ~ $3.5M per quarter modeling number
- NPL migration risk: potential up to ~$10M in watch list loans migrating to NPL in Q1 2026 (lumpy; expected moderation thereafter)
- Tax rate modeling: suggest 26%
- NIM outlook: including credit-enhanced balances expected to increase as long as credit-enhanced growth continues; excluding excess credit-enhanced income expected to gradually decline
Risks & Headwinds
- Higher-than-expected credit costs from servicing refinement: Q4 NCOs $6.7M vs $3.1M; management characterized the core portfolio provision drag as an onetime item but it directly impacted Q4 earnings
- SBA processing delays and demand timing: SBA originations down quarter over quarter due to extended SBA processing delays from staffing cuts and government shutdown impact (demand characterized as solid; timing issue)
- Deposit funding cost outlook tied to Fed/wholesale rates; benefits from rate cuts expected gradually due to CD maturities of 3 months–1 year
- BIN/payment timing risk: ramp-up more measured than initially anticipated; timing may be pushed beyond initial expectations (more impact expected next year)
- NPL migration uncertainty: guided potential migration of up to $10M in Q1 2026 (lumpy outcome); watch list/special mention migration driving classification movement
- Efficiency ratio deterioration: increased to 50.5% from 47.6% due to higher credit enhancement guarantee/servicing costs
Sentiment: MIXED
Note: This summary was synthesized by AI from the FINW Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.