8-K
Finwise Bancorp (FINW)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 29, 2026
FINWISE BANCORP
(Exact name of registrant as specified in its charter)
| Utah | 001-40721 | 83-0356689 | |||||
|---|---|---|---|---|---|---|---|
| (State or other jurisdiction of incorporation or organization) | (Commission file number) | (I.R.S. employer identification no.) | 756 East Winchester St., Suite 100 | 84107 | |||
| --- | --- | --- | --- | ||||
| Murray, | Utah | ||||||
| (Address of principal executive offices) | (Zip code) |
Registrant’s telephone number, including area code: (801) 501-7200
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | ☒ |
|---|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of exchange on which registered |
|---|---|---|
| Common Stock, par value $0.001 per share | FINW | The NASDAQ Stock Market LLC |
Item 2.02Results of Operations and Financial Condition.
Attached and incorporated herein by reference as Exhibit 99.1 is a copy of the press release of FinWise Bancorp (the "Company"), dated January 29, 2026, reporting the Company's financial results for the fiscal quarter ended December 31, 2025.
The information set forth under this “Item 2.02 Results of Operations and Financial Condition,” including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 7.01Regulation FD Disclosure.
The Company has prepared materials for presentation to investors. A copy of the materials is furnished as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference. The information set forth under “Item 7.01 Regulation FD Disclosure,” including Exhibit 99.2 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, as amended, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 9.01Financial Statements and Exhibits.
(d)Exhibits
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release dated January 29, 2026 |
| 99.2 | Investor Presentation of FinWise Bancorp datedJanuary 2026(furnished pursuant to Regulation FD). |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, FinWise Bancorp has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| DATE: January 29, 2026 | FINWISE BANCORP |
|---|---|
| /s/ Robert Wahlman | |
| Robert Wahlman | |
| Chief Financial Officer and Executive Vice President |
Document
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 $118 million at year-end 2025, also ahead of expectations. With a scalable model that is now demonstrating sustained momentum, we remain confident in our ability to continue delivering long‑term value for our shareholders.”
1 See “Reconciliation of Non-GAAP to GAAP Financial Measures” for a reconciliation of this non-GAAP measure.
Selected Financial and Other Data
| As of and for the Three Months Ended | As of and for the Years Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands, except per share amounts) | 12/31/2025 | 9/30/2025 | 12/31/2024 | 12/31/2025 | 12/31/2024 | ||||||||||
| 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 loans | 16.06 | % | 13.09 | % | 14.01 | % | 13.43 | % | 14.47 | % | |||||
| Cost of interest-bearing deposits | 3.96 | % | 4.06 | % | 4.30 | % | 4.02 | % | 4.57 | % | |||||
| Net interest margin | 11.42 | % | 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 | 198 | 194 | 196 | 198 | 196 |
(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
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) | 12/31/2025 | 9/30/2025 | 12/31/2024 | |||
| 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 loans | 17,718 | 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) | 12/31/2025 | 9/30/2025 | 12/31/2024 | |||
| Non-interest income | ||||||
| Strategic Program fees | $ | 5,477 | $ | 6,180 | $ | 4,899 |
| Gain on sale of loans | 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 income | 12,801 | 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 $160.0
million of callable certificates of deposits, an increase in current quarter dividends received from our investment in BFG as well as an increase in operating lease rental income during the current quarter.
Non-interest Expense
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| ($ in thousands) | 12/31/2025 | 9/30/2025 | 12/31/2024 | |||
| 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 expense | 961 | 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 |
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 $22.3 million. The increased loan balances are generally consistent with our strategy to grow the loan portfolio with higher quality lower risk assets.
The following table provides the composition and gross balances of loans held-for-investment (“HFI”) as of the dates indicated:
| 12/31/2025 | 9/30/2025 | 12/31/2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands) | Amount | % of total loans | Amount | % of total loans | Amount | % of total loans | ||||||
| SBA | $ | 205,615 | 34.5 | % | $ | 240,060 | 42.2 | % | $ | 255,056 | 54.8 | % |
| Commercial leases | 78,743 | 13.2 | % | 90,413 | 15.8 | % | 70,153 | 15.1 | % | |||
| Commercial, non-real estate | 4,201 | 0.7 | % | 4,827 | 0.9 | % | 3,691 | 0.8 | % | |||
| Residential real estate | 59,602 | 10.0 | % | 60,503 | 10.7 | % | 51,574 | 11.1 | % | |||
| Strategic Program loans: | ||||||||||||
| Strategic Program loans - with credit enhancement | 117,913 | 19.8 | % | 41,369 | 7.3 | % | 891 | 0.2 | % | |||
| Strategic Program loans - without credit enhancement | 21,637 | 3.6 | % | 21,654 | 3.8 | % | 19,231 | 4.1 | % | |||
| Commercial real estate: | ||||||||||||
| Owner occupied | 84,016 | 14.1 | % | 83,302 | 14.7 | % | 41,046 | 8.8 | % | |||
| Non-owner occupied | 1,638 | 0.3 | % | 1,424 | 0.3 | % | 1,379 | 0.3 | % | |||
| Consumer | 21,927 | 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 $117.9 million consistent with the Company’s strategy to increase the outstanding balance of lower credit risk loans.
The following table presents the Company’s deposit composition as of the dates indicated:
| 12/31/2025 | 9/30/2025 | 12/31/2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands) | Amount | Percent | Amount | Percent | Amount | Percent | ||||||
| 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
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 $3.2 million for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively. The increase in charge-offs from the prior quarter and the prior year period resulted primarily from growth in the credit enhanced loan portfolio as well as higher net charge-offs in the non-SP loan portfolios resulting from our adoption of more conservative servicing and administration standards which prompted an accelerated classification of nonperforming loans and charge-offs.
The following table presents a summary of changes in the allowance for credit losses and credit quality data for the periods indicated:
| Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands) | 12/31/2025 | 9/30/2025 | 12/31/2024 | ||||||
| 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 estate | 2 | 3 | 6 | ||||||
| Residential real estate multifamily | — | — | — | ||||||
| Commercial real estate: | |||||||||
| Owner occupied | 28 | 90 | 112 | ||||||
| Non-owner occupied | — | — | — | ||||||
| Commercial and industrial | — | 1 | — | ||||||
| Consumer | 5 | 3 | 1 | ||||||
| Lease financing receivables | 3 | 52 | 77 | ||||||
| Strategic Program loans | 328 | 341 | 313 | ||||||
| Ending Balance | $ | 36,796 | $ | 25,778 | $ | 13,176 | |||
| Credit Quality Data | As of and For the Three Months Ended | ||||||||
| ($ in thousands) | 12/31/2025 | 9/30/2025 | 12/31/2024 | ||||||
| Nonperforming loans: | |||||||||
| Guaranteed | $ | 24,195 | $ | 23,333 | $ | 19,203 | |||
| Unguaranteed | 19,518 | 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-investment | 3.3 | % | 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.
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.
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.
FINWISE BANCORP
CONSOLIDATED BALANCE SHEETS
($ in thousands; Unaudited)
| 12/31/2025 | 9/30/2025 | 12/31/2024 | ||||
|---|---|---|---|---|---|---|
| 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 value | 146,473 | 156,718 | 91,588 | |||
| Loans held-for-investment, net | 551,334 | 533,549 | 447,812 | |||
| Credit enhancement asset | 22,411 | 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, net | 3,545 | 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 |
FINWISE BANCORP
CONSOLIDATED STATEMENTS OF INCOME
($ in thousands, except per share amounts; Unaudited)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| 12/31/2025 | 9/30/2025 | 12/31/2024 | ||||
| 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 income | 12,801 | 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 expense | 961 | 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 | 12,952,200 | 12,859,264 | 12,659,986 | |||
| Weighted average shares outstanding, diluted | 13,635,186 | 13,615,354 | 13,392,411 | |||
| Shares outstanding at end of period | 13,655,961 | 13,571,090 | 13,211,640 |
FINWISE BANCORP
CONSOLIDATED STATEMENTS OF INCOME
($ in thousands, except per share amounts)
| Years Ended | ||||
|---|---|---|---|---|
| 12/31/2025 | 12/31/2024 | |||
| (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 expense | 1,222 | 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 | 12,828,016 | 12,612,455 | ||
| Weighted average shares outstanding, diluted | 13,565,336 | 13,228,869 | ||
| Shares outstanding at end of period | 13,655,961 | 13,211,160 |
FINWISE BANCORP
AVERAGE BALANCES, YIELDS, AND RATES
($ in thousands; Unaudited)
| Three Months Ended | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 12/31/2025 | 9/30/2025 | 12/31/2024 | ||||||||||||||||
| Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average 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 | % |
FINWISE BANCORP
AVERAGE BALANCES, YIELDS, AND RATES
($ in thousands; Unaudited)
| Years Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 12/31/2025 | 12/31/2024 | |||||||||||
| Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average 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 | % |
Reconciliation of Non-GAAP to GAAP Financial Measures
(Unaudited)
| Efficiency ratio | Three Months Ended | Years Ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands) | 12/31/2025 | 9/30/2025 | 12/31/2024 | 12/31/2025 | 12/31/2024 | ||||||||||
| Non-interest expense | $ | 23,651 | $ | 17,449 | $ | 13,564 | $ | 70,333 | $ | 52,835 | |||||
| Net interest income | 24,568 | 18,607 | 15,529 | 72,183 | 58,912 | ||||||||||
| Total non-interest income | 22,282 | 18,052 | 5,603 | 58,483 | 22,485 | ||||||||||
| Adjusted operating revenue | $ | 46,850 | $ | 36,659 | $ | 21,132 | $ | 130,666 | $ | 81,397 | |||||
| Efficiency ratio | 50.5 | % | 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 Ended | Years Ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands) | 12/31/2025 | 9/30/2025 | 12/31/2024 | 12/31/2025 | 12/31/2024 | ||||||||||
| 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 expense | 15,966 | 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 income | 16,883 | 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 income | 12,801 | 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 | % |
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 Ended | As of and for the Three Months Ended | As of and for the Three Months Ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands; unaudited) | 12/31/2025 | 9/30/2025 | 12/31/2024 | |||||||||||||||
| 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 | % |
| As of and for the Year Ended | As of and for the Year Ended | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||
| 12/31/2025 | 12/31/2024 | |||||||||||||||||
| ($ 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 Ended | As of and for the Three Months Ended | As of and for the Three Months Ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 12/31/2025 | 9/30/2025 | 12/31/2024 | ||||||||||||||||
| ($ in thousands; unaudited) | Total Average Interest-Earning Assets | Net Interest Income | Net Interest Margin | Total Average Interest-Earning Assets | Net Interest Income | Net Interest Margin | Total Average Interest-Earning Assets | Net Interest Income | Net 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 | % |
| As of and for the Year Ended | As of and for the Year Ended | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||
| 12/31/2025 | 12/31/2024 | |||||||||||||||||
| ($ in thousands; unaudited) | Total Average Interest-Earning Assets | Net Interest Income | Net Interest Margin | Total Average Interest-Earning Assets | Net Interest Income | Net 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 |
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
finw_investorxpresentati
January 2026
2 Disclaimers "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995 This presentation 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. 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 (“BaaS”) 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; and 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. Market and industry data This presentation includes estimates regarding market and industry data. Certain information is based on management estimates, which have been derived from third-party sources, as well as data from our internal research. While we believe the estimated market and industry data included in this presentation is generally reliable as of the date of the presentation, such information, which is derived in part from management’s estimates and beliefs, has not been independently verified and we make no representation as to the adequacy, fairness or completeness of any information obtained from third party sources. Non-GAAP financial measures Some of the financial measures included in this presentation are not measures of financial performance recognized by generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures are “tangible shareholders’ equity,” “tangible book value per share,” and “efficiency ratio.” We believe these non-GAAP financial measures provide useful information to management and investors; however, we acknowledge that our non-GAAP financial measures have limitations and should be considered a supplement to, not a substitute for, the GAAP financial measure. As such, you should not view these measures as a substitute for results determined in accordance with GAAP. A reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures is included in the Appendix to this presentation. Trademarks “FinWise” and its logos and other trademarks referred to and included in this presentation belong to us and are protected by applicable laws. We refer to our trademarks in this presentation without the ® or the ™ or symbols for convenience. Other service marks, trademarks and trade names referred to in this presentation, if any, are the property of their respective owners, although for presentational convenience we may not use the ® or the ™ symbols to identify such trademarks. Certain Terms In this presentation, we use certain defined terms and terms understood within the banking sector and industry. A Glossary of Terms Used is included in the Appendix to this presentation.
Fourth Quarter 2025 Highlights 3
Fourth Quarter and Full Year 2025 Results 4 1 Credit Enhanced Lending program fully launched mid-2025. Provision for credit losses has increased due to higher Credit Enhanced balances. 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. As of and for the Three Months Ended As of and for the Years Ended 12/31/2025 9/30/2025 12/31/2024 12/31/2025 12/31/2024 Income Statement Data ($ in thousands) Net interest income $ 24,568 $ 18,607 $ 15,529 $ 72,183 $ 58,912 Total non-interest income 22,282 18,052 5,603 58,483 22,485 Total operating revenue 46,850 36,659 21,132 130,666 81,397 Provision for credit losses (Core Portfolio + Credit Enhanced)(1) 17,712 12,799 3,878 38,573 11,573 Total non-interest expense 23,651 17,449 13,564 70,333 52,835 Income before income taxes 5,487 6,411 3,690 21,760 16,989 Provision for income taxes 1,572 1,520 897 5,669 4,247 Net income $ 3,915 $ 4,891 $ 2,793 $ 16,091 $ 12,742 Earnings per share, diluted $ 0.27 $ 0.34 $ 0.20 $ 1.13 $ 0.93 Balance Sheet Data ($ in thousands) Total cash and cash equivalents $ 163,400 $ 105,627 $ 109,162 $ 163,400 $ 109,162 Strategic program loans held-for-sale 146,473 156,718 91,588 146,473 91,588 Loans held-for-investment 551,334 533,549 447,812 551,334 447,812 Credit enhancement asset 22,411 11,214 111 22,411 111 All other assets 93,517 92,821 97,303 93,517 97,303 Total assets $ 977,135 $ 899,929 $ 745,976 $ 977,135 $ 745,976 Total deposits 754,561 682,310 544,952 754,561 544,952 All other liabilities 29,379 29,854 27,304 29,379 27,304 Total liabilities $ 783,940 $ 712,164 $ 572,256 $ 783,940 $ 572,256 Total shareholders' equity $ 193,195 $ 187,765 $ 173,720 $ 193,195 $ 173,720 Selected Financial Data ($ in thousands, except TBVps) Amount of loans originated $ 1,561,310 $ 1,789,736 $ 1,305,028 $ 6,098,830 $ 5,015,662 Credit enhanced balances $ 117,913 $ 41,369 $ 891 $ 117,913 $ 891 Return on average assets (annualized for quarters) 1.7 % 2.2 % 1.6 % 1.9 % 2.0 % Return on average equity (annualized for quarters) 8.1 % 10.6 % 6.5 % 8.9 % 7.7 % Net interest margin 11.42 % 9.01 % 10.00 % 9.23 % 9.99 % Efficiency ratio 50.5 % 47.6 % 64.2 % 53.8 % 64.9 % Tangible book value per share $ 14.15 $ 13.84 $ 13.15 $ 14.15 $ 13.15
FinWise Overview Differentiated Business Model • Resilient and profitable model with compelling growth opportunities • Compliance oversight and risk management culture • Lower risk loan portfolio with disciplined underwriting and collateral management: • 34% of portfolio at 4Q25 is SBA Guaranteed and Strategic Program HFS1 (HFS loans are typically cash-collateralized and held for less than one week) • Credit Enhanced Lending2 product incorporates a fintech financed loss reserve account structured to absorb credit losses • Well capitalized significantly above regulatory requirement • Highly experienced team with proved track record 1SBA Guaranteed loans are guaranteed by U.S Small Business Administration and Strategic Program Loans (HFS) are supported by reserve deposit accounts. 2See Glossary slide at end of presentation for definition of Credit Enhanced Lending. 5 • Banking and Payments Solutions for Fintechs: • Strategic Program Lending. Through our scalable API-driven infrastructure • Credit Enhanced Lending2. Generates lower risk asset growth (fintech required to hold a Loss Reserve Account at FinWise) and interest income • Payments (MoneyRailsTM) and BIN Sponsorship. Cross-sell products to generate lower-cost deposits and fee income • Traditional Lending. Provides flexibility for disciplined and diversified balance sheet growth: • SBA 7(a), including SBA guaranteed loans • Residential and owner occupied CRE • Equipment leasing programs Key Products
Our Culture - Strong Compliance and Risk Management 6 Consistent Investment in Personnel & Infrastructure Provides Regulatory Oversight Support to Fintechs Note: FTEs shown as of the end of each respective quarter; does not include FTEs in Governance and Operations. 73 (or 37%) of our 198 FTEs at the end of 4Q25 are in IT, Compliance, Risk Mgmt., and BSA functions NOTE: Although the number of FTEs declined in 3Q25, the proportion of FTEs dedicated to regulatory oversight and IT functions remained consistent with prior quarters. This stability reflects our continued focus on operational efficiency and strategic resource allocation.
Equipment Leasing Programs Balance Sheet Strategy: • Originate for Investment • Originations through vendor finance, additional third-party originators, direct channels • Diversify balance sheet Fintech Banking & Payments Solutions (includes Strategic Program and Credit Enhanced Lending) Balance Sheet Strategy: • Mostly originate to sell • Interest Income HFI & HFS • Minimum program & other fees • Programs establish a “reserve” deposit account with FinWise • Credit Enhanced Lending SBA 7(a) Balance Sheet Strategy: • Hold or sell guaranteed portion • Retain all servicing rights when guaranteed portion is sold • Leverage relationship with Business Funding Group, LLC for acquiring customers Residential & Owner Occupied CRE Balance Sheet Strategy: • Originate for Investment • Source of core deposits • High-touch, relationship banking • Historically stable and strong profitability Revenue Contribution by Product (ex-Payments & BIN) 4Q25 Gross Revenue Contribution1 1Does not include revenue from POS Lending Program which is an originate to hold strategy, “Other”, “Change in Fair Value on investment in BFG”, "Credit Enhanced", and revenue generated by non-lending activities. Note: SBA Guaranteed loans are guaranteed by U.S Small Business Administration; Strategic Program Loans (HFS) are supported by reserve deposit accounts. 49.8% 14.0% 2.6% 7 4.0% Differentiated and Proven Strategy Offers Solid Foundation for Future Growth As of 12/31/25: • Strategic Platform Loans on Bal. Sheet: $286.0M (51.2% HFS; 48.8% HFI) • 4Q25 Gain on Sale (net) and Strategic Program Fees: $5.6 million or 25.3% of non- interest income As of 12/31/25: • SBA Loans on Bal. Sheet: $205.6 (49.9% Guaranteed; 50.1% Unguaranteed) Product Overview: • Consumer and commercial lending • Construction lending focus on single-family residential Product Overview: • Equipment secured leases/ loans • Interest bearing (generally 60-month fixed rates) • "Aurora" loan origination system provides scalability and automation Target Customer: • Consumers and small to medium-sized businesses (SMBs) via Fintech Platforms Target Customer: • SMBs Target Customer: • Single family residential and SMBs Target Customer: • SMBs via Equipment point of sale TRADITIONAL LENDING PRODUCTS
Review of Strategic Program Lending: Roles of the Bank and Fintech 8 Loan Applications and Approvals Adhere to Credit Models Established by FinWise
Strategic Program Lending - Program Diversification Has Improved Note: Strategic Program Lending concentration shown since 1Q22 to highlight longer-term pattern in recent years 9
10 Select Fintech Brands We Currently Support Note: Upstart, Elevate, Reach and FUTR Payments (formerly Hank Payments) are not on MoneyRailsTM, but FinWise does handle Payment Processing for them. Growth Opportunity With Existing Fintechs And As New Programs Are Onboarded
Growth Strategy: A Broader Fintech Solutions Offering 1SBA 7(a) includes Guaranteed and Unguaranteed loans; Guaranteed loans are guaranteed by U.S Small Business Administration. Note: "Fintech Solutions" is used to describe our target market within the banking-as-a-service ecosystem. 11 Strategic Program Lending (SPL) SBA 7(a)1 Equipment Financing BIN Sponsorship Strategic Program Lending (SPL) + Credit Enhancement SBA 7(a)1 Equipment Financing Payments (MoneyRails™)
Growth Strategy: Potential Long-term Benefits from Broader Fintech Solutions Offering Revenue Expand and diversify sources of revenue Deposits Diversify deposit composition and reduce cost of funds Credit Quality Increase Prime loan exposure Profitability Enhance profitability and oper. leverage via lower cost of funds and use of outsourced solutions Note: "Potential Long-term Benefits" describe the Company's expectations of potential benefits to the overall FinWise business model 12
Credit Enhanced Lending - A Lower Risk Product 1The fintech partner refers the borrower through joint marketing efforts, and FinWise originates the loan. 13
MoneyRailsTM Overview and Map of Services 14 MoneyRailsTM is an Award Winning, Proprietary, Centralized, Secure Platform and Ledger that Facilitates Money Movement • Highly secured platform built on ZeroTrust architecture, and based on an immutable ledger of transactions • The Ledger provides a strong foundation with controls, standing instructions and connectors for third-party integrations • Fintechs can build their own experience using APIs without dependency on FinWise • Provides tokenized and virtual card servicing capabilities, which enables incoming/ outgoing payments and card mgmt. to be housed in a central hub 1 Cards will be available in 2H 2026. NOTE: Currently Live: Ledgering, ACH, RTP, FedNow, Wires, RPPS, File-based support, KYC/KYB Connector, API enabled, Fraud Monitoring
15 Interest Income • Monthly fee driven by originated loan volume • On loans held for a few days before sold and on extended held for sale loans • On loans held for investment • Incorporated in Strategic Program Lending monthly fee • Contractual interest earned on loans maintained on our bal. sheet • Note: payments to Fintechs of excess spread are mostly expensed. Also, fintechs are required to hold a deposit acct. at FinWise against which charge-offs are recovered, trued up monthly post charge-offs • Monthly fees (including Acct. Mgmt. fees) • Transaction Fees (ACH, Wires, Real Time, etc.) • None • Note: lower cost deposits generated help NII • Monthly fees driven by dollar volume spent • On receivables held for a few days before sold • On receivables held for investment • Monthly fees driven by dollar volume spent • None • Note: lower cost deposits generated help NII • Gain on sale of loans (SBA 7a) • Traditional interest income 1 As part of Credit Enhanced Lending agreement, Fintech is required to hold a Loss Reserve Account at FinWise. The provision for credit losses associated with the credit enhanced loan portfolio is different from core portfolio provisions because it's fully offset by the recognition of future recoveries pursuant to the partner guarantee of an exact amount described as credit-enhancement income in our non-interest income. 2MoneyRailsTM enhances fee revenue opportunity in SPL and Cards. 3SBA Guaranteed loans are guaranteed by U.S Small Business Administration and Strategic Program Loans (HFS) are supported by reserve deposit accounts. A Deeper Dive Into Our Diversified Revenue Model Strategic Program Lending to Fintechs Payments (MoneyRails™)2 Credit Cards Traditional Lending (SBA 7(a)3, Residential & Owner Occupied CRE, Equipment Financing) Credit Enhanced Lending1 (part of Strategic Program Lending to Fintechs) Prepaid & Debit Cards Type of Revenue Generated by Product BIN Sponsorships: Net Interest Income (NII)Fee Income
Components of Model Enable Scaling and Regulatory Oversight Our Technology:Product: Enterprise Data Warehouse -Proprietary and rigorous regulatory process -FinWise controls the data internally Lending programs, including closed and open-ended consumer and commercial • Verify borrower information • Validate loans to models and underwriting criteria, and originate API 2) Payments (MoneyRailsTM) Payments (MoneyRailsTM) ACH, SDA, TCH RTP, FedNow, Wire, Visa Direct and Mastercard Send, Mastercard RPPS • Rules-based money movement configurations and restrictions • Verification, validation and capture of necessary oversight data API 3) BIN Sponsorship Card Processors Credit and Charge Cards Debit cards; prepaid • Capture daily cardholder financial activity and bank-defined data sets necessary for oversight and testing of regulatory compliance Data 16 1) Strategic Program Lending Credit Engine
Intensive Due-Diligence Process and Compliance Assessment Representative Fintech Onboarding - a Thorough Selection Process Including: 17
Disciplined Underwriting Process Mitigates Risk... • Credit risk is managed through combination of policy, data and pricing • Disciplined underwriting process and well collateralized portfolio has helped mitigate net charge-offs, even as credit quality normalized due to an elevated interest rate environment • Remain well-reserved: ACL/Total Gross Loans HFI of 6.2% at end of 4Q25. • SBA guaranteed balances as % of Total Gross Loans HFI have declined as we continue to sell guaranteed portions of SBA loans due to favorable market conditions • Strategic Programs HFI balances as % of Total Gross Loans HFI, have increased partly driven by higher Credit Enhanced balances • 1Provision for loan losses has increased due to higher Credit Enhanced balances. 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, recognized as credit enhancement income in non-interest income. 181For 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. 2 During 4Q25, we further refined our servicing and administrative standards, which resulted in accelerated classification of certain loans to nonperforming status and earlier recognition of related charge-offs. *ACL = Allowance for Credit Losses; SP = Strategic Programs; HFI = Held for Investment.
...and Leads to a Diversified and Lower Risk Loan Portfolio Key Quarterly Trends: • Combined SBA Guaranteed and Strategic Program Loans Held-for-Sale (HFS) increased to a total of 33.6% of the portfolio as of 4Q25 vs 45.0% as of FY24. ◦ Both products carry lower credit risk: SBA Guaranteed loans are guaranteed by the U.S Small Business Administration and Strategic Program Loans (HFS) are supported by reserve deposit accounts • SBA Unguaranteed loans declined from 17.3% of the portfolio as of FY24 to 13.9% as of 4Q25 - while the absolute dollar amount of these loans remained relatively stable, the decline as a percent of the portfolio is primarily attributable to overall balance sheet grown, especially in Credit Enhanced loans • SBA Guaranteed balances have declined as we continue to sell amounts of the guaranteed portion of SBA loans 19 1Total Loans includes Held for Investment (HFI) and Held for Sale (HFS). NOTE: Commercial (Non RE) is mostly Equipment Leasing. Portfolio Characteristics: • SBA: Average FICO is 740+. Average time in business is 12+ years. Top 3 industries by Unguaranteed balances: eCommerce, Law Firms and Health Care. Note: Our SBA loss rate has been approximately 74% lower than the SBA 7(a) industry for all originations since 2014. • CRE Non-SBA (11.5% as of 4Q25) is 98.1% Owner Occupied
Deposit Composition 20 As of December 31, 2025, Total Period End Deposits: $754.6 Million Opportunity to enhance profitability by gradually diversifying deposit composition away from higher-cost CDs and reducing cost of funds
Consistent TBV Growth Has Been a Win for Shareholders Tangible Book Value Per Share (Non-GAAP)1 21 1See Appendix at end of presentation for full description of metric and Non-GAAP reconciliation. Amounts are as of the end of each respective period. 2 Bank Peers defined as: Oregon Bancorp, Inc., Quaint Oak Bancorp, Inc., University Bancorp, Inc., BayFirst Financial Corp., CF Bankshares Inc., Meridian Corporation, Coastal Financial Corporation, Capital Bancorp, Inc., FS Bancorp, Inc., Blue Ridge Bankshares, Inc., First Internet Bancorp, Nicolet Bankshares, Inc., Triumph Financial, Inc., Live Oak Bancshares, Inc., Merchants Bancorp, The Bancorp, Inc., Cross River Bank, Metropolitan Bank Holding Corp., Capital Community Bank. 3 Fintech Peers defined as Atlanticus Holdings Corporation, Oportun Financial Corporation, LendingClub Corporation, Pathward Financial, Inc. Note: Bank level Call Report financial data used where holding company consolidated financials unavailable; 3Q 2025 financial data used where 4Q 2025 holding company consolidated and bank level Call Report financials are unavailable Source: S&P Capital IQ Pro Indexed Change in TBV Since FINW IPO (4Q21) vs Select Bank2 and Fintech Peers3
Industry Recognition as a Top-Performing Bank 22 FinWise Bancorp ranked in top 3 on American Banker's annual list of Top-Performing Publicly Traded Banks with under $2 billion of assets (based on 3-year average ROAE ending 12/31/23) 2022 2023 2022 2023 20242024 Source: https://www.independentbanker.org/article/2024/05/01/icba%27s-best-performing-banks-of-2024; https://www.americanbanker.com/list/the-20-top-performing-publicly-traded-banks-with-under-2b-of-assets FinWise Bancorp ranked #1 in its respective class (for the 3rd year in a row) for Best Performing Banks (based on 3-year average pre-tax ROA) FinWise Bank was ranked as one of the 50 fastest growing companies in Utah based on revenue growth over five years. 2022 2023 2024
Selected Financial Information 23
Solid Originations and Significant Balance Sheet Growth 24 1 Includes seasonality from our largest Student Lending Partner. 2HFI = Held for Investment. Note: Total Loan Originations are for the quarterly period. Other amounts are as of the end of each respective period
Growing TBVps and Sustained Historical Profitability 25 1See Appendix for more information and Non-GAAP reconciliation. Tangible Book Value per Share (Non-GAAP) as of the end of each respective period. 2ROAE is negatively affected by high capital levels. 4Q25 Net Income impacted by an increase in net-charge offs, in part stemming from a refinement of our servicing and administration standards. This resulted in a higher provision for credit losses on our traditional banking portfolio, which negatively impacted our 4Q25 net income by $1.1 million after tax. Profitability partly impacted by infrastructure investments over the past two years to support organic growth and the build-out of key strategic initiatives. ROAE has also been lower due to high capital levels.
Diversified Income Sources 26 1For accounting purposes, Credit Enhancement Income is fully offset by a corresponding credit loss provision related to credit enhanced balances, thus not having a net effect on the Company's net income. 2All Other Non-interest Income includes all other non-interest income items, excluding Strategic Program Fees and Credit Enhancement Income. Net Interest Income and Net Interest Margin (NIM) are impacted by lending activities including growth in the Credit Enhanced portfolio
Disciplined Expense Management While Investing for Growth Increase in total non-interest expense in 3Q25 and 4Q25 partly due to increases in credit enhancement servicing and guarantee expenses resulting from growth in credit enhanced loans. In prior years the increase in total non-interest expense has been driven largely by business infrastructure spend, including headcount, to support organic growth and key strategic initiatives. Outlook Commentary: Remain focused on positive operating leverage; Expense growth to be correlated to revenue production. NOTE: reported efficiency ratio was 50.5% in 4Q25. Adjusting for credit enhancement related accounting gross ups to net interest income, non-interest income and non-interest expense, the core efficiency ratio was 60.6% for 4Q252 27 4Q24 3Q25 4Q25 Full Time Employees (FTEs) 196 194 198 Efficiency Ratio (Non-GAAP)2 64.2% 47.6% 50.5% 1All Other Non-interest Expense refers to all other expense components within Total Non-interest Expense, excluding Salaries & Employee Benefits and Credit Enhancement Expenses. 2See Appendix at the end of the presentation for Non-GAAP reconciliation
Well Capitalized Above Regulatory Requirements 28 Note: data as of the end of each respective period. Capital levels remain well above the well-capitalized regulatory requirement of 9%, pursuant to the Community Bank Leverage Ratio framework adopted by the Bank in 2020.
Appendix 29
Non-GAAP Reconciliations 30 (1) Tangible shareholders’ equity: This measure is not a measure recognized under GAAP and is therefore considered to be 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 as of any of the dates indicated. The Company has not considered loan servicing rights or loan trailing fee asset as intangible assets for purposes of this calculation. As a result, tangible shareholders’ equity is the same as total shareholders’ equity as of each of the dates indicated. (2) Efficiency Ratio: This measure is not a measure recognized under United States generally accepted accounting principles, or GAAP, and is therefore considered to be 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. Tangible Shareholders' Equity and Tangible Book Value Per Share As of ($ in thousands, except per share amounts) December 31, 2025 September 30, 2025 December 31, 2024 Total shareholders' equity $ 193,195 $ 187,765 $ 173,720 Goodwill — — — Other intangibles — — — Less: total intangible assets — — — Tangible shareholders' equity1 $ 193,195 $ 187,765 $ 173,720 Tangible book value per share1 $ 14.15 $ 13.84 $ 13.15 Efficiency Ratio For the Three Month Period Ending ($ in thousands) December 31, 2025 September 30, 2025 December 31, 2024 Non-interest expense $ 23,651 $ 17,449 $ 13,564 Net interest income 24,568 18,607 15,529 Non-interest income 22,282 18,052 5,603 Adjusted operating revenue $ 46,850 $ 36,659 $ 21,132 Efficiency ratio2 50.5 % 47.6 % 64.2 %
Non-GAAP Reconciliations (continued) 31 (3) Adjusted Efficiency Ratio: This measure is not a measure recognized under United States generally accepted accounting principles, or GAAP, and is therefore considered to be a non-GAAP financial measure. The adjusted efficiency ratio is defined as total non-interest expense, adjusted for credit enhancement program expenses, divided by the sum of net interest income and adjusted non-interest income, adjusted for credit enhancement income. Adjusted Efficiency Ratio For the Three Month Period Ending ($ in thousands) December 31, 2025 September 30, 2025 December 31, 2024 Non-interest expense (GAAP) $ 23,651 $ 17,449 $ 13,564 Less: credit enhancement program expenses 7,685 1,968 6 Adjusted non-interest expense 15,966 15,481 13,558 Net interest income (GAAP) 24,568 18,607 15,529 Less: credit enhancement interest 7,685 1,968 6 Adjusted net interest income 16,883 16,639 15,523 Total non-interest income (GAAP) 22,282 18,052 5,603 Less: credit enhancement income 12,801 8,762 25 Adjusted non-interest income 9,481 9,290 5,578 Adjusted operating revenue $ 26,364 $ 25,929 $ 21,101 Adjusted efficiency ratio3 60.6 % 59.7 % 64.3 %
Glossary of Terms Used 32 ACH (The Automated Clearing House). Electronic funds-transfer system that facilitates payments in the U.S. and internationally. The ACH is run by Nacha. API (Application Programming Interface). Set of defined rules that enable different applications to communicate with each other. It acts as an intermediary layer that processes data transfers between systems, letting companies open their application data and functionality to external third-party developers, business partners, and internal departments within their companies. Banking-as-a-Service (BaaS). Banking model in which licensed banks integrate their digital banking services directly into the products of other non-bank businesses. This allows non-bank businesses to offer their customers digital banking services such as mobile bank accounts, debit cards, loans and payment services, without needing to acquire a banking license of their own. The bank's system communicates via APIs and webhooks with that of the non-bank's business, enabling the end customer to access banking services directly through the non-bank’s website or app. BIN (Bank Identification Number) Sponsorship. BIN sponsorship allows fintech businesses to quickly gain direct access to the payment processing and card management services provided by the likes of Visa or Mastercard without going through the process of joining a major card scheme. It provides fintechs with quickest way to launch a financial product with a debit, credit or prepaid card attached. Credit Enhanced Lending. FinWise generates interest income from existing and potential new strategic programs through contractual interest earned on loans maintained on the FinWise balance sheet. Fintech strategic programs using this product are required to hold a deposit account at FinWise against which charge-offs are recovered, and which is trued up monthly post any charge-offs. FedNow. The clearing service for financial institutions to provide immediate end-to-end payments to customers. The key difference between this service and the Fed’s previous system is that FedNow will be online 24/7, processing transactions in real time. HFI (Held for Investment). When a reporting entity holds an originated or purchased loan for which it has the intent and ability to hold for the foreseeable future or to maturity or payoff, the loan should be classified as held-for-investment. Loans held for investment are reported on the balance sheet at their amortized cost basis. HFS (Held for Sale). When a reporting entity originates or purchases a loan with the intent to sell the loan to another entity (e.g., a government sponsored enterprise). Mastercard RPPS (Remote Payment and Presentment Service). Mastercard RPPS optimizes electronic bill payment by connecting banks to billers. It offers a single, reliable connection for electronic payment providers to help with fast & secure consumer bill payments. Mastercard Send. Mastercard’s offering in the real-time personal payments arena. Senders can immediately make “push payments” to bank accounts, mobile wallets, prepaid debit cards, or targeted cash- out locations. The sender can initiate a Mastercard Send transaction with just the recipient’s debit card number. MoneyRailsTM is FinWise's Payments hub, which is a single-window platform through which companies can execute all their payments, and issue virtual cards. MoneyRails also provides the ability to safeguard funds in an array of account types: FBO and subaccounts to satisfy FinTechs’ deposit needs, as well as traditional Savings, Checking, Certificate of Deposits, etc. . Payment hubs increase fund control and visibility, reduce the risk associated with numerous fragmented payment processes, and improve overall operating efficiency. NIM: Net Interest Margin SBA 7(a) loans. Small-business loans issued by a private lender and partially backed by the U.S. Small Business Administration. SMBs. Small to medium-sized businesses. Strategic Program Lending - SPL (sometimes referred as Marketplace Lending). Lending predominately done through fintech platforms that connect borrowers with lenders. TBV: Tangible Book Value The Clearing House RTP. A real-time payments platform that all federally insured U.S. depository institutions are eligible to use for payments innovation. All RTP payments are processed by The Clearing House. When you pay your utility bill for the month using RTP, your bank sends message to network which includes the details of the payment. The Clearing House then processes the message and routes it to utility company's bank, completing the payment. Visa Direct. A type of Original Credit Transaction (OCT) that allows fast and secure payment transfers to customers using their card details. Unlike with other payment methods, where it can typically take up to 24 hours for the funds to be transferred to the customer, Visa Direct transactions normally complete near-instantly.