FinWise Bancorp (NASDAQ:FINW) Issues Quarterly Earnings Results

FinWise Bancorp (NASDAQ:FINW) posted its earnings results on Thursday. The company reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.33 by ($0.13), FiscalAI reports. FinWise Bancorp had a net margin of 9.05% and a return on equity of 8.33%. The company had revenue of $24.33 million during the quarter, compared to analysts’ expectations of $50.48 million.

Here are the key takeaways from FinWise Bancorp’s conference call:

• Management reported elevated net charge-offs of $9.4M in Q1 concentrated in a narrow set of legacy SBA/e‑commerce credits (about $50M of remaining performing balances) and said charge-offs are likely to remain elevated for the next few quarters; nonperforming loans rose to $49.8M (53% government‑guaranteed).
• The credit‑enhanced portfolio has scaled from nearly zero to $109M in ~12 months, management expects organic growth of $8M–$10M per month for 2026 (skewed to mid/late year), and partner cash reserves are required to reimburse losses on these programs.
• Loan originations were strong at $1.7 billion in Q1 (up 38% YoY), the partner pipeline is described as materially strengthening, and early card/payment activity is contributing to rising interchange income.
• Financials show modest profitability (Q1 net income $2.7M, EPS $0.20) but the CFO flagged modeling assumptions including ~ $45M quarterly net charge‑offs for non‑credit‑enhanced loans, potential +$10M of watchlist loans migrating to NPLs in Q2, and near‑term pressure on the efficiency ratio despite a strong bank leverage ratio of 16.8%.

FinWise Bancorp Stock Performance

FINW stock traded down $0.59 on Friday, hitting $14.96. 70,241 shares of the company’s stock were exchanged, compared to its average volume of 12,031. FinWise Bancorp has a 12-month low of $13.48 and a 12-month high of $22.49. The firm has a 50 day moving average price of $16.22 and a two-hundred day moving average price of $17.40. The stock has a market cap of $205.10 million, a P/E ratio of 13.24 and a beta of 0.74.

Key FinWise Bancorp News

Here are the key news stories impacting FinWise Bancorp this week:

• Positive Sentiment: Robust loan production and NII growth: Loan originations rose to $1.7B and net interest income increased to $28.1M, showing core lending momentum that supports future interest income. Finwise Bancorp Reports First Quarter 2026 Results
• Positive Sentiment: Potential efficiency gains / new revenue angles from AI in compliance: Coverage notes FinWise alongside peers benefiting from AI-driven compliance tools, which could lower operating costs or support product offerings over time. Axos and FinWise post growth as AI reshapes compliance
• Neutral Sentiment: Management highlighted “strong loan growth amidst challenges” on the Q1 call — loan momentum is clear, but execution and credit mix are under scrutiny. FinWise Bancorp (FINW) Q1 2026 Earnings Call Highlights
• Negative Sentiment: Material earnings and revenue miss: Q1 EPS was $0.20 vs. consensus ~$0.33 and revenue was ~$24.3M vs. ~$50.5M expected — a key near‑term catalyst for the share decline. FinWise Bancorp (FINW) Lags Q1 Earnings and Revenue Estimates
• Negative Sentiment: Credit outlook is mixed and guidance implies higher loss pressure: Management is targeting $8M–$10M monthly growth in credit‑enhanced products but is guiding $4M–$5M quarterly net charge‑offs for non‑credit‑enhanced loans — elevated charge‑off guidance can compress near‑term profitability. FinWise targets $8M-$10M monthly credit enhanced growth…
• Negative Sentiment: Deteriorating asset quality and efficiency: Nonperforming loans rose to $49.8M and the efficiency ratio worsened to 66.3%, which, together with lower net income, raises concern about expense leverage and credit reserves. Finwise Bancorp Reports First Quarter 2026 Results

Wall Street Analysts Forecast Growth

FINW has been the topic of several analyst reports. Zacks Research lowered FinWise Bancorp from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 2nd. Wall Street Zen lowered FinWise Bancorp from a “hold” rating to a “sell” rating in a research note on Saturday. One research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $22.00.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in FINW. Geode Capital Management LLC grew its stake in FinWise Bancorp by 109.3% during the 2nd quarter. Geode Capital Management LLC now owns 204,323 shares of the company’s stock worth $3,068,000 after buying an additional 106,683 shares during the last quarter. Wasatch Advisors LP grew its stake in FinWise Bancorp by 7.2% during the 3rd quarter. Wasatch Advisors LP now owns 754,543 shares of the company’s stock worth $14,631,000 after buying an additional 50,434 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in FinWise Bancorp by 186.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 40,136 shares of the company’s stock worth $703,000 after buying an additional 26,115 shares during the last quarter. Militia Capital Partners LP grew its stake in FinWise Bancorp by 49.2% during the 2nd quarter. Militia Capital Partners LP now owns 74,601 shares of the company’s stock worth $1,120,000 after buying an additional 24,601 shares during the last quarter. Finally, Jane Street Group LLC grew its stake in FinWise Bancorp by 169.2% during the 1st quarter. Jane Street Group LLC now owns 33,196 shares of the company’s stock worth $581,000 after buying an additional 20,866 shares during the last quarter. 35.41% of the stock is currently owned by hedge funds and other institutional investors.

FinWise Bancorp Company Profile

FinWise Bancorp is the bank holding company for FinWise Bank, a digital‐first community bank headquartered in Lindon, Utah. The company specializes in providing commercial lending and deposit products to marketplace lending platforms, fintech companies and small to mid‐sized businesses across the United States. FinWise Bancorp operates through its wholly owned subsidiary, FinWise Bank, which is FDIC‐insured and leverages a technology‐driven model to deliver banking services efficiently.

The company’s primary business activities include participant financing arrangements for marketplace lenders and other fintech platforms, as well as direct commercial loans.