FinWise Bancorp Reports Q1 2025 Financial Results with $3.2 Million Net Income

FinWise Bancorp reported its financial results for the first quarter of 2025, revealing a net income of $3.2 million, a slight decrease from $3.3 million in the same period last year. The company's earnings per share were $0.24, down from $0.26 in the prior year. Total interest income increased by 5% to $18.5 million, driven by a rise in interest and fees on loans, which reached $17.2 million, compared to $16.0 million in the previous year. However, net interest income after provisions for credit losses was $10.9 million, reflecting a marginal increase from $10.9 million in the prior year.

Total assets for FinWise Bancorp grew by 7.8% to $804.1 million as of March 31, 2025, up from $746.0 million at the end of 2024. This growth was primarily attributed to an increase in loans held-for-investment, which rose to $472.4 million from $447.8 million, and a significant increase in strategic program loans held-for-sale, which surged to $118.8 million from $91.6 million. The company also reported a notable increase in total deposits, which rose to $605.8 million, an 11.2% increase from $545.0 million at the end of the previous year.

In terms of operational developments, FinWise Bancorp has expanded its loan origination capabilities through its Strategic Programs, which contributed to a total loan origination of $1.3 billion in the first quarter, up from $1.1 billion in the same period last year. The company has also seen a rise in non-interest income, which increased by 37.9% to $7.8 million, driven by higher strategic program fees and gains on loan sales. The increase in non-interest expenses, which rose by 19.3% to $14.3 million, was primarily due to higher salaries and employee benefits as the company invested in expanding its workforce and infrastructure.

Looking ahead, FinWise Bancorp remains optimistic about its growth trajectory, supported by strong capital levels and a diversified loan portfolio. The company is focused on leveraging its technology-driven banking model to enhance its product offerings and expand its market presence. However, management acknowledged potential risks, including the impact of economic conditions on credit quality and the need to manage interest rate risk effectively. The company is committed to maintaining its well-capitalized status under regulatory requirements, with a leverage ratio of 18.8% as of March 31, 2025, well above the minimum requirement.