FinWise Bancorp (FINW) investor relations material

Executive summary

• Loan originations reached $1.7 billion in Q1 2026, up 38% year-over-year and 11% sequentially, driven by new and existing strategic programs.

• Net income was $2.7 million, down from $3.9 million in Q4 2025 and $3.2 million in Q1 2025, primarily due to higher net charge-offs and increased provision for credit losses.

• Tangible book value per share increased to $14.34, continuing a trend of outperformance versus peers.

• Credit Enhanced Lending balances reached $109 million, with the product fully launched mid-2025.

• Bank leverage ratio remained strong at 16.8%, well above regulatory minimums.

Financial highlights

• Net interest income rose to $28.1 million, up from $24.6 million in Q4 2025 and $14.3 million in Q1 2025.

• Net interest margin improved to 12.90% from 11.42% in Q4 2025 and 8.27% in Q1 2025.

• Non-interest income totaled $14.6 million, down from $22.3 million in Q4 2025 but up from $7.8 million in Q1 2025.

• Non-interest expense increased to $28.3 million, up from $23.7 million in Q4 2025 and $14.3 million in Q1 2025, mainly due to credit enhancement program costs and higher salaries.

• Total assets at quarter-end were $899.4 million, down from $977.1 million in the prior quarter.

Outlook and guidance

• Management expects elevated SBA charge-offs to persist over the next few quarters as legacy credits are actively managed.

• Q2 loan originations are tracking at a $1.4 billion quarterly run rate; full-year 2026 guidance reaffirms $1.4 billion per quarter baseline with 5% annual growth.

• Credit-enhanced balances expected to grow $8–$10 million per month, with growth skewed to mid and late 2026.

• Efficiency ratio is expected to improve as revenues from growing credit enhanced loan balances are realized.

• The partner pipeline is strengthening and the platform is scaling, supporting a positive long-term business trajectory.