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Banking industry

FinWise Bank Reports Strong Third Quarter 2024 Financials

Strategic Insights

— 2 min read

FinWise Bancorp, parent company of FinWise Bank, has announced its financial results for the quarter ended September 30, 2024, showcasing a resilient business with notable growth in loan originations and improved revenue. The company's third-quarter highlights include a significant increase in loan originations to $1.4 billion, up from $1.2 billion in the previous quarter and $1.1 billion in the same period last year. Net interest income reached $14.8 million, a slight increase from the previous quarter and year-over-year. Net income was $3.5 million, down from $4.8 million in the third quarter of the prior year. The efficiency ratio improved to 67.5%, compared to 66.3% in the previous quarter and 50.4% in the same period last year.

Key Takeaways:

  • Loan originations increased to $1.4 billion, a 17.5% quarter-over-quarter increase and a 27.3% year-over-year increase.
  • Net interest income was $14.8 million, a 2.1% increase from the previous quarter and a 3.5% increase from the same period last year.
  • Net income was $3.5 million, a 9.8% decrease from the third quarter of the prior year.
  • Diluted earnings per share (EPS) were $0.25, a 4.2% increase from the previous quarter and a 32.4% decrease from the same period last year.
  • Efficiency ratio improved to 67.5%, a decrease from 66.3% in the previous quarter and a significant improvement from 50.4% in the same period last year.
  • The balance of nonperforming loans guaranteed by the Small Business Administration (SBA) was $17.8 million as of September 30, 2024, down from $16.0 million in the previous quarter and $4.7 million in the same period last year.
  • FinWise's CEO, Kent Landvatter, stated, "Our results during the third quarter reflect the resiliency of our existing business as well as the actions we've taken to enhance long-term growth."
  • The company announced one new lending program in the quarter, bringing the total number of new lending programs to three in the year.

Statistics:

| Category | 9/30/2024 | 6/30/2024 | 9/30/2023 |

| --- | --- | --- | --- |

| Loans Originated ($M) | 1,448 | 1,171 | 1,061 |

| Net Interest Income ($M) | 14.8 | 14.6 | 14.4 |

| Net Income ($M) | 3.5 | 3.2 | 4.8 |

| Diluted EPS | 0.25 | 0.24 | 0.37 |

| Efficiency Ratio | 67.5% | 66.3% | 50.4% |

| Return on Average Assets | 2.1% | 2.1% | 3.7% |

| Return on Average Equity | 8.3% | 7.9% | 12.8% |

| Tangible Book Value per Share | $12.90 | $12.61 | $12.04 |

| Full-Time Equivalent (FTEs) | 194 | 191 | 158 |

Sources:

  • "FinWise Bancorp Reports Third Quarter 2024 Financial Results" (PDF).
  • "Reconciliation of Non-GAAP to GAAP Financial Measures".

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