FinWise Bancorp (FINW) Q2 2026 earnings summary

Executive summary

• Loan originations reached $1.6 billion in Q2 2026, up from $1.5 billion year-over-year but down from $1.7 billion in Q1, driven by strategic programs and a diversified partner base.

• Net income for Q2 2026 was $2.1 million, down from $2.7 million in Q1 and $4.1 million year-over-year, impacted by higher provision expenses.

• Diluted EPS was $0.15, below expectations and down from $0.20 in Q1 and $0.29 in Q2 2025.

• Credit quality improved with nonperforming loan balances declining to $37.7 million from $49.8 million in Q1, mainly due to resolutions and paydowns in SBA 7 loans.

• Tangible book value per share increased to $14.55, a 13.8% CAGR since IPO.

Financial highlights

• Net interest income was $28.7 million, up from $28.1 million in Q1 and $14.7 million in Q2 2025, driven by growth in credit-enhanced loans and lower non-performing loans.

• Net interest margin rose to 13.69% from 12.90% in Q1 and 7.81% in Q2 2025.

• Non-interest income increased to $25.6 million, mainly due to higher credit enhancement and new interchange income.

• Non-interest expense was $28.9 million, reflecting higher credit enhancement guarantee and servicing costs.

• Total assets grew to $925.3 million, with deposits increasing to $693.8 million.

Outlook and guidance

• Loan originations expected at $1.6 billion in Q3 and $1.4 billion in Q4 2026.

• Net charge-offs for non-credit enhanced loans guided at $4 million-$5 million per quarter for the remainder of 2026.

• Management expects continued improvement in the efficiency ratio as revenues from credit enhanced loan balances grow.

• Integration of Tallied Technologies acquisition expected to incur $4 million in costs over the next year, with cost savings anticipated.

• Pipeline includes new and existing fintech partnerships expected to launch through 2027, supporting diversified revenue growth.