FinWise Bancorp Q4 net interest income rises

Reuters01-30
FinWise Bancorp Q4 net interest income rises

Overview

  • Utah bank's Q4 loan originations totaled $1.6 bln, up from prior year

  • Net income for Q4 was $3.9 mln, up from prior year

  • Net interest income rose to $24.6 mln, driven by credit enhanced balances

Outlook

  • Company expects continued long-term value delivery for shareholders

  • FinWise anticipates efficiency ratio improvement due to credit enhanced loan revenues

Result Drivers

  • SEASONALITY IMPACT - Q4 loan originations decreased from Q3 due to seasonal variations in student loan programs

  • CREDIT ENHANCED BALANCES - Increase in net interest income driven by growth in credit enhanced balances

  • HIGHER PROVISION FOR CREDIT LOSSES - Increase due to growth in credit enhanced loan portfolio and conservative servicing standards

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 EPS

$0.27

Q4 Net Income

$3.90 mln

Q4 Net Interest Income

$24.60 mln

Q4 Loan Loss Provision

-$17.70 mln

Q4 Net Interest Margin

11.42%

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy"

  • Wall Street's median 12-month price target for Finwise Bancorp is $22.00, about 20.6% above its January 28 closing price of $18.24

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX7XK9Vg

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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