EX-99.1 2 finw-2026129earningsrelease.htm EX-99.1 Document

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Exhibit 99.1


FINWISE BANCORP REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS
- Loan Originations of $6.1 Billion for 2025, including $1.6 Billion for Fourth Quarter -
- Net Income of $16.1 Million for 2025, including $3.9 Million for Fourth Quarter -
- Diluted Earnings Per Share of $1.13 for 2025, including $0.27 for Fourth Quarter -

MURRAY, UTAH — January 29, 2026 (GLOBE NEWSWIRE) — FinWise Bancorp (NASDAQ: FINW) (“FinWise” or the “Company”), parent company of FinWise Bank (the “Bank”), today announced results for the quarter and fiscal year ended December 31, 2025.

Fourth Quarter 2025 Highlights
•Loan originations totaled $1.6 billion, compared to $1.8 billion for the quarter ended September 30, 2025, and $1.3 billion for the fourth quarter of the prior year
•Net interest income was $24.6 million, compared to $18.6 million for the quarter ended September 30, 2025, and $15.5 million for the fourth quarter of the prior year
•Net income was $3.9 million, compared to $4.9 million for the quarter ended September 30, 2025, and $2.8 million for the fourth quarter of the prior year
•Diluted earnings per share (“EPS”) were $0.27 for the quarter, compared to $0.34 for the quarter ended September 30, 2025, and $0.20 for the fourth quarter of the prior year
•Efficiency ratio1 was 50.5%, compared to 47.6% for the quarter ended September 30, 2025, and 64.2% for the fourth quarter of the prior year
•Nonperforming loan balances were $43.7 million as of December 31, 2025, compared to $42.8 million as of September 30, 2025, and $36.5 million as of December 31, 2024. Nonperforming loan balances guaranteed by the Small Business Administration (“SBA”) were $24.2 million, $23.3 million, and $19.2 million as of December 31, 2025, September 30, 2025, and December 31, 2024, respectively

“FinWise delivered a strong 2025, growing net income 26% versus 2024 and posting a steady fourth quarter, all of which underscores how our multi-year investments are gradually translating into tangible, sustainable results,” said Kent Landvatter, Chairman and CEO of FinWise Bancorp. “We delivered balanced revenue growth and disciplined expense management, leading to solid profitability and continued expansion of tangible book value per share. Fourth quarter loan originations totaled $1.6 billion, ahead of our initial guidance of $1.4 billion. This brings full-year 2025 originations to $6.1 billion, representing healthy 22% year-over-year growth. Balances in our credit enhanced product reached $118 million at year-end 2025, also ahead of expectations. With a scalable model that is now demonstrating sustained momentum, we remain confident in our ability to continue delivering long‑term value for our shareholders.”




1 See “Reconciliation of Non-GAAP to GAAP Financial Measures” for a reconciliation of this non-GAAP measure.
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Selected Financial and Other Data

 As of and for the Three Months EndedAs of and for the Years Ended
($ in thousands, except per share amounts)
12/31/20259/30/202512/31/202412/31/202512/31/2024
Amount of loans originated$1,561,310 $1,789,736 $1,305,028 $6,098,830 $5,015,662 
Net income$3,915 $4,891 $2,793 $16,091 $12,742 
Diluted EPS(1)
$0.27 $0.34 $0.20 $1.13 $0.93 
Return on average assets(2)
1.7 %2.2 %1.6 %1.9 %2.0 %
Return on average equity(2)
8.1 %10.6 %6.5 %8.9 %7.7 %
Yield on loans16.06 %13.09 %14.01 %13.43 %14.47 %
Cost of interest-bearing deposits3.96 %4.06 %4.30 %4.02 %4.57 %
Net interest margin11.42 %9.01 %10.00 %9.23 %9.99 %
Efficiency ratio(3)
50.5 %47.6 %64.2 %53.8 %64.9 %
Tangible book value per share(4)
$14.15 $13.84 $13.15 $14.15 $13.15 
Tangible shareholders’ equity to tangible assets(4)
19.8 %20.9 %23.3 %19.8 %23.3 %
Leverage ratio (Bank under CBLR)
16.9 %17.2 %20.6 %16.9 %20.6 %
Full-time equivalent employees
198194196198196
(1)    FinWise uses the two-class method to calculate basic and diluted EPS as restricted stock awards are considered participating securities due to the dividend rights associated with those awards. On December 31, 2025, executive management elected to waive the dividend rights on their non-vested restricted stock awards. As a result, beginning on December 31, 2025, the unvested shares held by executive management will no longer be treated as participating securities and are excluded from the two-class method calculation of EPS. This change was effective beginning with the quarter ending December 31, 2025 and had a de minimus impact on basic and diluted earnings per share. The change does not affect previously reported periods.
(2)    Annualized for the respective three-month periods.
(3)    Efficiency ratio is a non-GAAP financial measure. The efficiency ratio is defined as total non-interest expense divided by the sum of net interest income and non-interest income. The Company believes this measure is important as an indicator of productivity because it shows the amount of revenue generated for each dollar spent. See “Reconciliation of Non-GAAP to GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure.
(4)    Tangible shareholders’ equity to tangible assets is a non-GAAP financial measure. Tangible shareholders’ equity is defined as total shareholders’ equity less goodwill and other intangible assets. The most directly comparable GAAP financial measure is total shareholder’s equity to total assets. The Company had no goodwill or other intangible assets at the end of any period indicated. The Company has not considered loan servicing rights or loan trailing fee assets as intangible assets for purposes of this calculation. As a result, tangible shareholders’ equity is the same as total shareholders’ equity at the end of each of the periods indicated.

Net Interest Income and Net Interest Margin
Net interest income was $24.6 million for the fourth quarter of 2025, compared to $18.6 million for the prior quarter and $15.5 million for the prior year period. The increase from the prior quarter was primarily due to an increase in the Bank’s credit enhanced balances in the held-for-investment portfolio of $76.5 million which carries a higher contractual interest rate, offset in part by increased average balances in certificates of deposits used to fund the loan portfolio growth. The increase from the prior year period was primarily due to an increase in the Bank’s credit enhanced balances in the held-for-investment portfolio of $117.0 million and increased average balances in the Strategic Program loans held-for-sale portfolio of $51.5 million and was offset in part by growth in brokered certificates of deposits used to fund the loan portfolio growth.

Loan originations totaled $1.6 billion for the fourth quarter of 2025, a decrease from the $1.8 billion recorded in the prior quarter and an increase from the $1.3 billion recorded in the prior year period. The decrease from the prior quarter was primarily due to the seasonality of two strategic programs originating higher volumes of student loans during the third quarter. The increase from the prior year period mostly reflects the expansion of originations from newly onboarded strategic programs and the continued increase in originations by certain established strategic programs.

Net interest margin for the fourth quarter of 2025 was 11.42%, compared to 9.01% for the prior quarter and 10.00% for the prior year period. The increase in net interest margin from the prior quarter is largely attributable
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to the credit enhanced portfolio growth of $76.5 million as well as a reduction in accrued interest reversals on loans migrating to nonaccrual status during the fourth quarter when compared to the prior quarter. The increase in net interest margin from the prior year period was attributable to the growth in the credit enhanced portfolio of $117.0 million and was partially offset by the Company’s strategy to reduce the average credit risk in the loan portfolio by increasing its investment in higher quality but lower yielding loans.

Provision for Credit Losses
Three Months Ended
($ in thousands)12/31/20259/30/202512/31/2024
Provision for credit losses:
Strategic Program loans - with credit enhancement(1)
$12,801 $8,762 $25 
Strategic Program loans - without credit enhancement
2,064 2,550 2,405 
All other loans (core portfolio)2,853 1,346 1,337 
Provision for credit losses on loans17,718 12,658 3,767 
Provision for unfunded commitments(6)141 111 
Total provision for credit losses
$17,712 $12,799 $3,878 
(1)    For credit enhanced loans, fintech partners are required to maintain a deposit account at FinWise, which is used to recover charge-offs. The provision for credit losses on these loans differs from the core portfolio, as it is fully offset by expected recoveries under the partner guarantee, which is recognized as credit enhancement income in non-interest income.

The Company’s provision for credit losses was $17.7 million for the fourth quarter of 2025, compared to $12.8 million for the prior quarter and $3.9 million for the prior year period. The increase in the provision for credit losses from the prior quarter and the prior year period resulted primarily from growth in the credit enhanced loan portfolio as well as higher net charge-offs resulting from our adoption of more conservative servicing and administration standards which prompted an accelerated classification of nonperforming loans and charge-offs.

Non-interest Income
Three Months Ended
($ in thousands)12/31/20259/30/202512/31/2024
Non-interest income   
Strategic Program fees$5,477 $6,180 $4,899 
Gain on sale of loans2,190 1,854 872 
SBA loan servicing fees, net4 (242)181 
Change in fair value on investment in BFG400 200 (200)
Credit enhancement income12,801 8,762 25 
Other miscellaneous income (loss)1,410 1,298 (174)
Total non-interest income$22,282 $18,052 $5,603 

The increase in non-interest income from the prior quarter was primarily due to increases in credit enhancement income. Credit enhancement income mirrors the provision for credit losses on credit enhanced loans and increased principally due to the higher credit enhanced loan balances outstanding at December 31, 2025. Offsetting this non-interest income increase in part was a decrease in Strategic Program fees due to lower origination volumes.

The increase in non-interest income compared to the prior year period was primarily due to increases in credit enhanced loan balances which generated higher credit enhancement income. Additionally, the increased sales of the guaranteed portions of SBA 7(a) loans led to an increase in gains on loan sales, while higher originations resulted in increased Strategic Program fees. Other miscellaneous income also increased, largely because of a charge in the prior year period of $0.9 million to remove unamortized broker premiums upon calling $160.0
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million of callable certificates of deposits, an increase in current quarter dividends received from our investment in BFG as well as an increase in operating lease rental income during the current quarter.

Non-interest Expense
Three Months Ended
($ in thousands)12/31/20259/30/202512/31/2024
Non-interest expense   
Salaries and employee benefits$11,157 $10,814 $9,375 
Professional services899 876 556 
Occupancy and equipment expenses434 456 533 
Credit enhancement servicing expense961 248 1 
Credit enhancement guarantee expense
6,724 1,720 5 
Other operating expenses3,476 3,335 3,094 
Total non-interest expense$23,651 $17,449 $13,564 

The increase in non-interest expense from the prior quarter resulted primarily from increases in credit enhancement guarantee and servicing expenses largely related to growth in credit enhanced loans.

The increase in non-interest expense from the prior year period was primarily due to an increase in credit enhancement program expenses resulting from growth in credit enhanced loans and salaries and employee benefits mainly from the amortization of deferred compensation awards incurred to retain and motivate our employees.

FinWise’s efficiency ratio was 50.5% for the fourth quarter, compared to 47.6% for the prior quarter and 64.2% for the prior year period. We expect the efficiency ratio to continue improving as we begin to realize revenues from interest earned on credit enhanced loan balances.

Tax Rate
The Company’s effective tax rate was 28.7% for the fourth quarter of 2025, compared to 23.7% for the prior quarter and 24.3% for the prior year period. The increase from the prior quarter and prior year period was principally due to an increase in the exclusion of compensation expense for highly compensated individuals and the apportionment of income between states with various tax rates.

Net Income
Net income was $3.9 million for the fourth quarter of 2025, compared to $4.9 million for the prior quarter and $2.8 million for the prior year period. The changes in net income for the three months ended December 31, 2025 compared to the prior quarter and prior year period are generally the result of the factors discussed in the foregoing sections.

Balance Sheet
The Company’s total assets were $977.1 million as of December 31, 2025, an increase from $899.9 million as of September 30, 2025 and $746.0 million as of December 31, 2024. The increase in total assets from September 30, 2025 was primarily due to continued growth in the Company’s loans held-for-investment, net, of $17.8 million, interest-bearing cash deposits of $56.1 million, and an increase in the credit enhancement asset of $11.2 million. The increase in total assets compared to December 31, 2024 was primarily due to increases in the Company’s loans held-for-investment, net, of $103.5 million, loans held-for-sale portfolio of $54.9 million, interest-bearing cash deposits of $51.8 million, and credit enhancement asset of $22.3 million. The increased loan balances are generally consistent with our strategy to grow the loan portfolio with higher quality lower risk assets.

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The following table provides the composition and gross balances of loans held-for-investment (“HFI”) as of the dates indicated:
12/31/20259/30/202512/31/2024
($ in thousands)
Amount% of total loansAmount% of total loansAmount% of total loans
SBA$205,615 34.5 %$240,060 42.2 %$255,056 54.8 %
Commercial leases78,743 13.2 %90,413 15.8 %70,153 15.1 %
Commercial, non-real estate4,201 0.7 %4,827 0.9 %3,691 0.8 %
Residential real estate59,602 10.0 %60,503 10.7 %51,574 11.1 %
Strategic Program loans:    
Strategic Program loans - with credit enhancement117,913 19.8 %41,369 7.3 %891 0.2 %
Strategic Program loans - without credit enhancement21,637 3.6 %21,654 3.8 %19,231 4.1 %
Commercial real estate:  
     Owner occupied84,016 14.1 %83,302 14.7 %41,046 8.8 %
     Non-owner occupied1,638 0.3 %1,424 0.3 %1,379 0.3 %
Consumer21,927 3.8 %24,250 4.3 %22,212 4.8 %
Total period end loans
$595,292 100.0 %$567,802 100.0 %$465,233 100.0 %

Note: SBA loans as of December 31, 2025, September 30, 2025 and December 31, 2024 include $102.7 million, $132.2 million and $158.7 million, respectively, of SBA 7(a) loan balances that are guaranteed by the SBA. The HFI balance on Strategic Program loans without credit enhancement with annual interest rates below 36% as of December 31, 2025, September 30, 2025 and December 31, 2024 was $3.8 million, $3.9 million and $3.1 million, respectively.

Total gross loans HFI as of December 31, 2025 increased $27.5 million and $130.1 million compared to September 30, 2025 and December 31, 2024, respectively. The Company increased its sales of the guaranteed portion of SBA loans during the fourth quarter of 2025, resulting in higher gains on sale of loans. The declines in the SBA and commercial lease portfolios between third and fourth quarters of 2025 was mainly due to sales of associated loans within those portfolios. Management anticipates that these portfolios will continue to grow in 2026, aligned with the Company’s objective to diversify its loan portfolio with higher-quality but lower- interest rate loans. The credit enhanced portfolio of the Strategic Program loans increased $76.5 million in the quarter to $117.9 million consistent with the Company’s strategy to increase the outstanding balance of lower credit risk loans.

The following table presents the Company’s deposit composition as of the dates indicated:

12/31/20259/30/202512/31/2024
($ in thousands)
AmountPercentAmountPercentAmountPercent
Noninterest-bearing demand deposits
$168,442 22.3 %$130,601 19.2 %$126,782 23.3 %
Interest-bearing deposits:
Demand
74,817 9.9 %89,443 13.1 %71,403 13.1 %
Savings
11,017 1.5 %11,495 1.7 %9,287 1.7 %
Money market
22,017 2.9 %22,634 3.3 %16,709 3.0 %
Time certificates of deposit
478,268 63.4 %428,137 62.7 %320,771 58.9 %
Total period end deposits
$754,561 100.0 %$682,310 100.0 %$544,952 100.0 %

The increase in total deposits as of December 31, 2025 from September 30, 2025 and December 31, 2024 was driven primarily by growth in time certificates of deposits, which were added to fund loan growth and enhance the liquidity of the balance sheet and an increase in noninterest-bearing demand deposits primarily related to
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collateral deposits by certain strategic programs in anticipation of increased volumes in student loan fundings in January 2026.

Total shareholders’ equity as of December 31, 2025 increased $5.4 million to $193.2 million from $187.8 million at September 30, 2025. Compared to December 31, 2024, total shareholders’ equity increased by $19.5 million from $173.7 million. The increases from September 30, 2025 and December 31, 2024 were primarily due to net income generated throughout the respective periods.

Bank Regulatory Capital Ratios
The following table presents the leverage ratios for the Bank as of the dates indicated as determined under the Community Bank Leverage Ratio Framework of the Federal Deposit Insurance Corporation:
As of 
Capital Ratios
12/31/2025 9/30/2025 12/31/2024 Well-Capitalized Requirement
Leverage ratio
16.9%17.2%20.6%9.0%

The decrease in the leverage ratio from the prior quarter and prior year period resulted primarily from the growth in the loan portfolio exceeding the relative growth in capital from earnings. The Bank’s capital levels as of December 31, 2025 remain sufficiently above the regulatory well-capitalized guidelines as of December 31, 2025.

Share Repurchase Program
Since the share repurchase program’s inception in March 2024, the Company has repurchased and subsequently retired a total of 44,608 shares for $0.5 million. There were no shares repurchased during the fourth quarter of 2025.

Asset Quality
The recorded balances of nonperforming loans were $43.7 million, or 7.3% of total loans held-for-investment, as of December 31, 2025, compared to $42.8 million, or 7.5% of total loans held-for-investment, as of September 30, 2025 and $36.5 million, or 7.8% of total loans held-for-investment, as of December 31, 2024. The balances of nonperforming loans guaranteed by the SBA were $24.2 million, $23.3 million, and $19.2 million as of December 31, 2025, September 30, 2025 and December 31, 2024, respectively. The increase in nonperforming loans from the prior quarter and prior year period was primarily attributable to an increase in the SBA 7(a) loan portfolio being classified as nonaccrual mainly due to the negative impact of sustained elevated interest rates on the Company’s small business borrowers. The Company’s allowance for credit losses to total loans held-for-investment was 6.2% as of December 31, 2025 compared to 4.5% as of September 30, 2025 and 2.8% as of December 31, 2024. The increase in the ratio from the prior quarter and prior year period was primarily due to the provision for credit losses related to the growth of the credit enhanced loan balances.

The Company’s net charge-offs were $6.7 million, $3.1 million and $3.2 million for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively. The increase in charge-offs from the prior quarter and the prior year period resulted primarily from growth in the credit enhanced loan portfolio as well as higher net charge-offs in the non-SP loan portfolios resulting from our adoption of more conservative servicing and administration standards which prompted an accelerated classification of nonperforming loans and charge-offs.

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The following table presents a summary of changes in the allowance for credit losses and credit quality data for the periods indicated:

Three Months Ended
($ in thousands)
12/31/20259/30/202512/31/2024
Allowance for credit losses:
Beginning balance
$25,778 $16,247 $12,661 
Provision for credit losses(1)
17,718 12,658 3,766 
Charge-offs
 
Construction and land development— — — 
Residential real estate(704)(33)(206)
Residential real estate multifamily— — — 
Commercial real estate: 
Owner occupied(1,204)(258)(411)
Non-owner occupied— — — 
Commercial and industrial(441)(409)(555)
Consumer(212)(119)(60)
Lease financing receivables(73)(52)— 
Strategic Program loans(4,432)(2,746)(2,528)
Recoveries
Construction and land development— — — 
Residential real estate2 3 6 
Residential real estate multifamily— — — 
Commercial real estate:
Owner occupied28 90 112 
Non-owner occupied— — — 
Commercial and industrial— 1 — 
Consumer5 3 1 
Lease financing receivables3 52 77 
Strategic Program loans328 341 313 
Ending Balance
$36,796 $25,778 $13,176 

Credit Quality Data
As of and For the Three Months Ended
($ in thousands)
12/31/20259/30/202512/31/2024
Nonperforming loans: 
Guaranteed$24,195 $23,333 $19,203 
Unguaranteed19,518 19,445 17,281 
Total nonperforming loans
$43,713 $42,778 $36,484 
Allowance for credit losses$36,796 $25,778 $13,176 
Net charge-offs$6,700 $3,126 $3,249 
Total loans held-for-investment
$595,292 $567,802 $465,233 
Total loans held-for-investment less guaranteed balances
$492,598 $435,557 $306,483 
Average loans held-for-investment
$594,967 $550,534 $454,474 
Nonperforming loans to total loans held-for-investment
7.3 %7.5 %7.8 %
Unguaranteed nonperforming loans to total loans held-for-investment3.3 %3.4 %3.7 %
Net charge-offs to average loans held-for-investment (annualized)
4.5 %2.3 %2.8 %
Allowance for credit losses to loans held-for-investment
6.2 %4.5 %2.8 %
Allowance for credit losses to loans held-for-investment less guaranteed balances
7.5 %5.9 %4.3 %
(1)    Excludes the provision for unfunded commitments.

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Webcast and Conference Call Information
FinWise will host a conference call today at 5:00 PM ET to discuss its financial results for the fourth quarter and year ended December 31, 2025. A simultaneous audio webcast of the conference call will be available at https://investors.finwisebancorp.com/.

The dial-in number for the conference call is (877) 423-9813 (toll-free) or (201) 689-8573 (international). The conference ID is 13757193. Please dial the number 10 minutes prior to the scheduled start time.

A webcast replay of the call will be available at investors.finwisebancorp.com for six months following the call.

Website Information
The Company intends to use its website, www.finwisebancorp.com, as a means of complying with its disclosure obligations under Regulation FD. Such disclosures will be included in the Company’s website’s Investor Relations section. Accordingly, investors should monitor the Investor Relations portion of the Company’s website, in addition to following its press releases, filings with the Securities and Exchange Commission (“SEC”), public conference calls, and webcasts. To subscribe to the Company’s e-mail alert service, please click the “Email Alerts” link in the Investor Relations section of its website and submit your email address. The information contained in, or that may be accessed through, the Company’s website is not incorporated by reference into or a part of this document or any other report or document it files with or furnishes to the SEC, and any references to the Company’s website are intended to be inactive textual references only.

About FinWise Bancorp
FinWise Bancorp is a Utah bank holding company headquartered in Murray, Utah which wholly owns FinWise Bank, a Utah chartered state bank, and FinWise Investment LLC (together “FinWise”). FinWise provides Banking and Payments solutions to fintech brands. FinWise’s existing Strategic Program Lending business, conducted through scalable API-driven infrastructure, powers deposit, lending and payments programs for leading fintech brands. As part of Strategic Program Lending, FinWise also provides a Credit Enhanced Balance Sheet Program, which addresses the challenges that lending and card programs face diversifying their funding sources and managing capital efficiency. In addition, FinWise manages other Lending programs such as SBA 7(a), Owner Occupied Commercial Real Estate, and Leasing, which provide flexibility for disciplined balance sheet growth. FinWise is also expanding and diversifying its business model by incorporating Payments (MoneyRails™) and BIN Sponsorship offerings. Through its compliance oversight and risk management-first culture, FinWise is well positioned to guide fintechs through a rigorous process to facilitate regulatory compliance. For more information about FinWise visit https://investors.finwisebancorp.com.

Contacts
investors@finwisebank.com
media@finwisebank.com

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
This release may contain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company’s current views with respect to, among other things, the Company’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “believe,” “expect,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “projection,” “forecast,” “budget,” “goal,” “target,” “would,” “aim” and “outlook,” or similar expressions generally indicate a forward-looking statement.

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These forward-looking statements are based on management assumptions and involve risks and uncertainties that are subject to change based on various important factors, some of which are beyond the Company’s control. Numerous competitive, economic, regulatory, legal and technological events and factors, among others, could cause the Company’s actual results to differ materially from those indicated in these forward-looking statements, including: the success of the financial technology and banking-as-a-service industries, as well as the continued evolution of the regulation of these industries; the Company’s ability to maintain and grow its relationships with its service providers and reliance on such providers to comply with regulatory regimes; the Company’s ability to keep pace with rapid technological changes in the industry or implement new technology effectively; ability to effectively manage and remediate system failure or cybersecurity breaches of the Company’s network security; the Company’s ability to measure and manage its credit risk effectively and any deterioration of the business and economic conditions in the Company’s primary market areas; the adequacy of the Company’s allowance for credit losses; changes in Small Business Administration rules, regulations and loan products and the existing regulatory framework for brokered deposits; higher inflation and its impacts; the effects of changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs on its trading partners; the value of collateral securing the Company’s loans; the Company’s levels of nonperforming assets; the potential for negative consequences resulting from regulatory violations, investigations and examinations, including potential supervisory actions, the assessment of fines and penalties, the imposition of sanctions, the need to undertake remedial actions and possible damage to the Company’s reputation; natural disasters and adverse weather, acts of terrorism, pandemics, an outbreak of hostilities or other international or domestic calamities; anticipated benefits of new lines of business that the Company may enter or investments or acquisitions the Company may make that are not realized within the expected time frame or at all; further negative ratings outlooks or downgrades of the long-term credit rating of the United States; the ongoing government shutdown and other political impasses, including with respect to the debt ceiling and the federal budget of the United States.

The Company cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review the Company’s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K, subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K, including any amendments thereto, that update or provide information in addition to the information included in the Form 10-K and Form 10-Q filings, if any. The Company does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by the Company or by or on behalf of the Company, except as may be required under applicable law.
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FINWISE BANCORP
CONSOLIDATED BALANCE SHEETS
($ in thousands; Unaudited)

 12/31/20259/30/202512/31/2024
ASSETS
Cash and cash equivalents
Cash and due from banks
$12,082 $10,362 $9,600 
Interest-bearing deposits
151,318 95,265 99,562 
Total cash and cash equivalents
163,400 105,627 109,162 
Investment securities available-for-sale, at fair value
27,755 27,761 29,930 
Investment securities held-to-maturity, at cost
9,927 10,617 12,565 
Investment in Federal Home Loan Bank (“FHLB”) stock, at cost
440 440 349 
Strategic Program loans held-for-sale, at lower of cost or fair value146,473 156,718 91,588 
Loans held-for-investment, net
551,334 533,549 447,812 
Credit enhancement asset22,411 11,214 111 
Premises and equipment, net
2,540 2,725 3,548 
Assets subject to operating leases, net 12,575 13,317 10,176 
Accrued interest receivable
3,707 1,959 3,566 
Deferred taxes, net
2,345 1,079 — 
SBA servicing asset, net
3,547 3,121 3,273 
Investment in Business Funding Group (“BFG”), at fair value
9,000 8,600 7,700 
Operating lease right-of-use (“ROU”) assets
2,963 3,162 3,564 
Income tax receivable, net3,545 3,314 8,868 
Other assets
15,173 16,726 13,764 
Total assets
$977,135 $899,929 $745,976 
  
LIABILITIES AND SHAREHOLDERS’ EQUITY
  
Liabilities
  
Deposits
  
Noninterest-bearing
$168,442 $130,601 $126,782 
Interest-bearing
586,119 551,709 418,170 
Total deposits
754,561 682,310 544,952 
Accrued interest payable
2,632 4,518 1,494 
Income taxes payable, net
837 839 4,423 
Deferred taxes, net
— — 899 
Operating lease liabilities
4,408 4,683 5,302 
Other liabilities
21,502 19,814 15,186 
Total liabilities
783,940 712,164 572,256 
  
Shareholders’ equity
  
Common stock
14 14 13 
Additional paid-in-capital
60,958 59,417 56,926 
Retained earnings
132,197 128,282 116,594 
Accumulated other comprehensive income, net of tax
26 52 187 
Total shareholders’ equity
193,195 187,765 173,720 
Total liabilities and shareholders’ equity
$977,135 $899,929 $745,976 


10

FINWISE BANCORP
CONSOLIDATED STATEMENTS OF INCOME
($ in thousands, except per share amounts; Unaudited)

 Three Months Ended
 12/31/20259/30/202512/31/2024
Interest income
Interest and fees on loans
$28,915 $22,532 $18,388 
Interest on securities
349 360 401 
Other interest income
970 1,074 573 
Total interest income
30,234 23,966 19,362 
 
Interest expense
Interest on deposits
5,666 5,359 3,833 
Total interest expense
5,666 5,359 3,833 
Net interest income
24,568 18,607 15,529 
 
Provision for credit losses
17,712 12,799 3,878 
Net interest income after provision for credit losses
6,856 5,808 11,651 
 
Non-interest income
Strategic Program fees
5,477 6,180 4,899 
Gain on sale of loans, net
2,190 1,854 872 
SBA loan servicing fees, net
4 (242)181 
Change in fair value on investment in BFG
400 200 (200)
Credit enhancement income12,801 8,762 25 
Other miscellaneous income
1,410 1,298 (174)
Total non-interest income
22,282 18,052 5,603 
 
Non-interest expense
Salaries and employee benefits
11,157 10,814 9,375 
Professional services
899 876 556 
Occupancy and equipment expenses
434 456 533 
Credit enhancement servicing expense961 248 1 
Credit enhancement guarantee expense
6,724 1,720 5 
Other operating expenses
3,476 3,335 3,094 
Total non-interest expense
23,651 17,449 13,564 
Income before income taxes
5,487 6,411 3,690 
 
Provision for income taxes
1,572 1,520 897 
Net income
$3,915 $4,891 $2,793 

Earnings per share, basic
$0.29 $0.36 $0.21 
Earnings per share, diluted
$0.27 $0.34 $0.20 

Weighted average shares outstanding, basic
12,952,20012,859,26412,659,986
Weighted average shares outstanding, diluted
13,635,18613,615,35413,392,411
Shares outstanding at end of period
13,655,96113,571,09013,211,640
11

FINWISE BANCORP
CONSOLIDATED STATEMENTS OF INCOME
($ in thousands, except per share amounts)

 Years Ended
 12/31/202512/31/2024
(Unaudited)
Interest income
Interest and fees on loans
$87,087 $68,892 
Interest on securities
1,489 897 
Other interest income
3,902 4,563 
Total interest income
92,478 74,352 
Interest expense
Interest on deposits
20,295 15,440 
Total interest expense
20,295 15,440 
Net interest income
72,183 58,912 
Provision for credit losses
38,573 11,573 
Net interest income after provision for credit losses
33,610 47,339 
Non-interest income
Strategic Program fees
22,024 17,762 
Gain on sale of loans, net
6,373 2,036 
SBA loan servicing fees, net
(156)1,137 
Change in fair value on investment in BFG
1,300 (625)
Credit enhancement income
23,924 111 
Other miscellaneous income
5,018 2,064 
Total non-interest income
58,483 22,485 
Non-interest expense
Salaries and employee benefits
42,288 35,205 
Professional services
3,630 4,736 
Occupancy and equipment expenses
1,877 2,179 
Credit enhancement servicing expense1,222 1 
Credit enhancement guarantee expense
8,533 8 
Other operating expenses
12,783 10,706 
Total non-interest expense
70,333 52,835 
Income before income taxes
21,760 16,989 
Provision for income taxes
5,669 4,247 
Net income
$16,091 $12,742 
Earnings per share, basic
$1.20 $0.98 
Earnings per share, diluted
$1.13 $0.93 
Weighted average shares outstanding, basic
12,828,01612,612,455
Weighted average shares outstanding, diluted
13,565,33613,228,869
Shares outstanding at end of period
13,655,96113,211,160



12

FINWISE BANCORP
AVERAGE BALANCES, YIELDS, AND RATES
($ in thousands; Unaudited)
Three Months Ended
12/31/20259/30/202512/31/2024

Average BalanceInterestAverage Yield/RateAverage BalanceInterestAverage Yield/RateAverage BalanceInterestAverage Yield/Rate
Interest-earning assets:
   Interest-bearing deposits
$101,074 $970 3.81 %$97,404 $1,074 4.37 %$52,375 $573 4.35 %
   Investment securities
38,124 349 3.64 %39,497 360 3.61 %43,212 401 3.69 %
   Strategic Program loans held-for-sale
119,139 5,765 19.20 %132,314 6,219 18.65 %67,676 5,040 29.63 %
   Loans held-for-investment
594,967 23,150 15.44 %550,534 16,313 11.76 %454,474 13,348 11.68 %
   Total interest-earning assets
853,304 30,234 14.06 %819,749 23,966 11.60 %617,737 19,362 12.47 %
Noninterest-earning assets
66,770 65,084 55,767 
Total assets
$920,074 $884,833 $673,504 
Interest-bearing liabilities:
 
   Demand
$76,080 $663 3.46 %$69,941 $630 3.57 %$57,305 $617 4.28 %
   Savings
11,507 47 1.62 %12,271 54 1.75 %9,192 9 0.40 %
   Money market accounts
20,990 193 3.64 %24,629 237 3.82 %15,726 147 3.73 %
   Certificates of deposit
458,838 4,763 4.12 %417,059 4,438 4.22 %272,799 3,060 4.46 %
   Total deposits
567,415 5,666 3.96 %523,900 5,359 4.06 %355,022 3,833 4.30 %
   Other borrowings
— — — %— — — %79 — 0.35 %
   Total interest-bearing liabilities
567,415 5,666 3.96 %523,900 5,359 4.06 %355,101 3,833 4.29 %
Noninterest-bearing deposits
129,063 140,499 119,945 
Noninterest-bearing liabilities
32,738 36,552 27,636 
Shareholders’ equity
190,858 183,882 170,823 
Total liabilities and shareholders’ equity
$920,074 $884,833 $673,505 
Net interest income and interest rate spread
 $24,568 10.10 %$18,607 7.54 %$15,529 8.18 %
Net interest margin
 11.42 %9.01 %10.00 %
Ratio of average interest-earning assets to average interest-bearing liabilities
  150.38 %156.47 %173.96 %


13

FINWISE BANCORP
AVERAGE BALANCES, YIELDS, AND RATES
($ in thousands; Unaudited)
Years Ended
12/31/202512/31/2024

Average BalanceInterestAverage Yield/RateAverage BalanceInterestAverage Yield/Rate
Interest-earning assets:
   Interest-bearing deposits
$93,107 $3,902 4.19 %$87,086 $4,563 5.24 %
   Investment securities
40,449 1,489 3.68 %26,691 897 3.36 %
   Strategic Program loans held-for-sale
112,778 21,884 19.40 %58,896 17,698 30.05 %
   Loans held-for-investment
535,671 65,203 12.17 %417,207 51,194 12.27 %
   Total interest-earning assets
782,005 92,478 11.83 %589,880 74,352 12.60 %
Noninterest-earning assets
57,484 47,598 
Total assets
$839,489 $637,478 
Interest-bearing liabilities:
 
   Demand
$71,824 $2,542 3.54 %$59,317 $2,108 3.55 %
   Savings
10,768 123 1.14 %9,574 66 0.69 %
   Money market accounts
20,376 763 3.75 %12,284 452 3.68 %
   Certificates of deposit
401,302 16,867 4.20 %256,575 12,814 4.99 %
   Total deposits
504,270 20,295 4.02 %337,750 15,440 4.57 %
   Other borrowings
13 — 0.05 %126 — 0.34 %
   Total interest-bearing liabilities
504,283 20,295 4.02 %337,876 15,440 4.57 %
Noninterest-bearing deposits
125,490 107,760 
Noninterest-bearing liabilities
28,055 26,634 
Shareholders’ equity
181,661 165,208 
Total liabilities and shareholders’ equity
$839,489 $637,478 
Net interest income and interest rate spread
 $72,183 7.80 %$58,912 8.03 %
Net interest margin
  9.23 %9.99 %
Ratio of average interest-earning assets to average interest-bearing liabilities
  155.07 %174.58 %


14

Reconciliation of Non-GAAP to GAAP Financial Measures
(Unaudited)
Efficiency ratio
Three Months EndedYears Ended
($ in thousands)
12/31/20259/30/202512/31/202412/31/202512/31/2024
Non-interest expense$23,651 $17,449 $13,564 $70,333 $52,835 
Net interest income24,568 18,607 15,529 72,183 58,912 
Total non-interest income22,282 18,052 5,603 58,483 22,485 
Adjusted operating revenue
$46,850 $36,659 $21,132 $130,666 $81,397 
Efficiency ratio50.5 %47.6 %64.2 %53.8 %64.9 %

The following table presents the impact of the credit enhancement program on our efficiency ratio:

Adjusted efficiency ratio
Three Months EndedYears Ended
($ in thousands)
12/31/20259/30/202512/31/202412/31/202512/31/2024
Non-interest expense (GAAP)
$23,651 $17,449 $13,564 $70,333 $52,835 
Less: credit enhancement program expenses
7,685 1,968 6 9,755 9 
Adjusted non-interest expense15,966 15,481 13,558 60,578 52,826 
Net interest income (GAAP)
24,568 18,607 15,529 72,183 58,912 
Less: credit enhancement program expenses
7,685 1,968 6 9,755 9 
Adjusted net interest income16,883 16,639 15,523 62,428 58,903 
Total non-interest income (GAAP)22,282 18,052 5,603 58,483 22,485 
Less: credit enhancement income12,801 8,762 25 23,924 111 
Adjusted non-interest income
9,481 9,290 5,578 34,559 22,374 
Adjusted operating revenue
$26,364 $25,929 $21,101 $96,987 $81,277 
Adjusted efficiency ratio
60.6 %59.7 %64.3 %62.5 %65.0 %
15


FinWise has entered into agreements with certain of its Strategic Program service providers pursuant to which they provide credit enhancement on loans which protects the Bank by indemnifying or reimbursing the Bank for incurred credit and fraud losses. We estimate and record a provision for expected losses for these Strategic Program loans in accordance with GAAP, which requires estimation of the provision without consideration of the credit enhancement. When the provision for expected losses over the life of the loans that are subject to such credit enhancement is recorded, a credit enhancement asset reflecting the future recovery of those estimated credit losses pursuant to the strategic partner’s guarantee to assume the Bank’s credit losses on each of the loans in the respective guaranteed portfolio is also recorded on the balance sheet in the form of non-interest income (credit enhancement income). Reimbursement or indemnification for incurred losses is provided for in the form of a deposit reserve account that is replenished periodically by the respective Strategic Program service provider. The credit enhancement asset is reduced as credit enhancement payments and recoveries are received from the Strategic Program service provider or taken from its cash reserve account. If the Strategic Program service provider is unable to fulfill its contracted obligations under its credit enhancement agreement, then the Bank could be exposed to the loss of the reimbursement and credit enhancement income as a result of this counterparty risk. In the event the Strategic Program service provider is not able to perform according to the contractual terms, the Bank is entitled to receive all the income on the loans. The Bank incurs expenses for the amounts owed to the strategic partner for the credit guarantee and for servicing of the credit enhanced portfolio, if applicable (credit enhancement program expenses). See the following reconciliations of non-GAAP measures for the impact of the credit enhancement on our financial condition and results. Note that these amounts are supplemental and are not a substitute for an analysis based on GAAP measures.
The following non-GAAP measures are presented to illustrate the impact of certain credit enhancement program expenses on total interest income on loans held-for-investment and average yield on loans held-for-investment:

As of and for the Three Months EndedAs of and for the Three Months EndedAs of and for the Three Months Ended
($ in thousands; unaudited)
12/31/20259/30/202512/31/2024
Total Average Loans HFI
Total Interest Income on Loans HFI
Average Yield on Loans HFI
Total Average Loans HFI
Total Interest Income on Loans HFI
Average Yield on Loans HFI
Total Average Loans HFI
Total Interest Income on Loans HFI
Average Yield on Loans HFI
Before adjustment for credit enhancement $594,967 $23,150 15.44 %$550,534 $16,313 11.76 %$454,474 $13,348 11.68 %
Less: credit enhancement program expenses
(7,685)(1,968)(6)
Net of adjustment for credit enhancement program expenses
$594,967 $15,465 10.31 %$550,534 $14,345 10.34 %$454,474 $13,342 11.68 %

16

As of and for the Year EndedAs of and for the Year Ended
12/31/202512/31/2024
($ in thousands; unaudited)
Total Average Loans HFI
Total Interest Income on Loans HFI
Average Yield on Loans HFI
Total Average Loans HFI
Total Interest Income on Loans HFI
Average Yield on Loans HFI
Before adjustment for credit enhancement$535,671 $65,203 12.17 %$417,207 $51,194 12.27 %
Less: credit enhancement program expenses
(9,755)(9)
Net of adjustment for credit enhancement program expenses
$535,671 $55,448 10.35 %$417,207 $51,185 12.27 %

Total interest income on loans held-for-investment net of credit enhancement program expenses and the average yield on loans held-for-investment net of credit enhancement program expenses are non-GAAP measures that include the impact of credit enhancement program expenses on total interest income on loans held-for-investment and the respective average yield on loans held-for-investment, the most directly comparable GAAP measures.

The following non-GAAP measures are presented to illustrate the impact of certain credit enhancement program expenses on net interest income and net interest margin:

As of and for the Three Months EndedAs of and for the Three Months EndedAs of and for the Three Months Ended
12/31/20259/30/202512/31/2024
($ in thousands; unaudited)
Total Average Interest-Earning AssetsNet Interest IncomeNet Interest MarginTotal Average Interest-Earning AssetsNet Interest IncomeNet Interest MarginTotal Average Interest-Earning AssetsNet Interest IncomeNet Interest Margin
Before adjustment for credit enhancement $853,304 $24,568 11.42 %$819,749 $18,607 9.01 %$617,737 $15,529 10.00 %
Less: credit enhancement program expenses
(7,685)(1,968)(6)
Net of adjustment for credit enhancement program expenses$853,304 $16,883 7.85 %$819,749 $16,639 8.05 %$617,737 $15,523 10.00 %

17

As of and for the Year EndedAs of and for the Year Ended
12/31/202512/31/2024
($ in thousands; unaudited)
Total Average Interest-Earning AssetsNet Interest IncomeNet Interest MarginTotal Average Interest-Earning AssetsNet Interest IncomeNet Interest Margin
Before adjustment for credit enhancement$782,005 $72,183 9.23 %$589,880 $58,912 9.99 %
Less: credit enhancement program expenses
(9,755)(9)
Net of adjustment for credit enhancement program expenses$782,005 $62,428 7.98 %$589,880 $58,903 9.99 %

Net interest income and net interest margin net of credit enhancement program expenses are non-GAAP measures that include the impact of credit enhancement program expenses on net interest income and net interest margin, the most directly comparable GAAP measures.

Non-interest expenses less credit enhancement program expenses is a non-GAAP measure presented to illustrate the impact of credit enhancement program expenses on non-interest expense:
($ in thousands; unaudited)
Three Months Ended December 31, 2025
Three Months Ended September 30, 2025
Three Months Ended December 31, 2024
Year Ended December 31, 2025
Year Ended December 31, 2024
Total non-interest expense$23,651 $17,449 $13,564 $70,333 $52,835 
Less: credit enhancement program expenses
(7,685)(1,968)(6)(9,755)(9)
Total non-interest expense less credit enhancement program expenses$15,966 $15,481 $13,558 $60,578 $52,826 

Total non-interest expense less credit enhancement program expenses is a non-GAAP measure that illustrates the impact of credit enhancement program expenses on non-interest expense, the most directly comparable GAAP measure.

Total non-interest income less credit enhancement income is a non-GAAP measure to illustrate the impact of credit enhancement income resulting from credit enhanced loans on non-interest income:

($ in thousands; unaudited)
Three Months Ended December 31, 2025
Three Months Ended September 30, 2025
Three Months Ended December 31, 2024
Year Ended December 31, 2025
Year Ended December 31, 2024
Total non-interest income$22,282 $18,052 $5,603 $58,483 $22,485 
Less: credit enhancement income(12,801)(8,762)(25)(23,924)(111)
Total non-interest income less credit enhancement income$9,481 $9,290 $5,578 $34,559 $22,374 

18

Total non-interest income less indemnification income is a non-GAAP measure that illustrates the impact of credit enhancement income on non-interest income. The most directly comparable GAAP measure is non-interest income.

The following non-GAAP measure is presented to illustrate the effect of the credit enhancement program that creates the credit enhancement on the allowance for credit losses:
($ in thousands; unaudited)
As of December 31, 2025
As of September 30, 2025
As of December 31, 2024
Allowance for credit losses$36,796 $25,778 $13,176 
Less: allowance for credit losses related to credit enhanced loans(22,411)(11,214)(111)
Allowance for credit losses excluding the effect of the allowance for credit losses related to credit enhanced loans$14,385 $14,564 $13,065 

The allowance for credit losses excluding the effect of the allowance for credit losses related to credit enhanced loans is a non-GAAP measure that reflects the effect of the credit enhancement program on the allowance for credit losses. The total outstanding balance of loans held-for-investment with credit enhancement as of December 31, 2025, September 30, 2025 and December 31, 2024 was approximately $117.9 million, $41.4 million and $0.9 million, respectively.
19