The large EPS miss and rising credit losses overshadow the reported revenue growth. Expect negative short-term price pressure as the market digests the credit quality deterioration. Monitor upcoming quarter for guidance on SBA charge-off trajectory and whether credit enhancement revenues continue to mask core weakness.
Price Chart
Executive Summary
FinWise Bancorp reported Q1 2026 diluted EPS of $0.20, missing the $0.33 consensus by 39%, as net income fell 14% YoY despite a surge in reported revenue driven by credit enhancement accounting. Nonperforming loans rose to 8.5% of loans and net charge-offs annualized to 6.4%, signaling worsening credit quality that will pressure near-term profitability.
Key Financial Metrics
Key Facts
- Diluted EPS of $0.20 vs consensus $0.33 (-39% miss)
- Net income $2.7M, down 14% YoY from $3.2M
- Net interest income surged 97% YoY to $28.1M, partly from accounting change in credit enhancement allocation
- Total non-interest income $14.6M (+87% YoY) led by credit enhancement income and new interchange fees
- Net charge-offs annualized to 6.4% of average loans, up from 1.9% a year ago
- Nonperforming loans to total loans rose to 8.5% from 6.1% a year ago
- Efficiency ratio deteriorated to 66.3% from 64.8% a year ago
- Tangible book value per share grew to $14.34 from $13.42 a year ago
Financial Impact
EPS miss of ~39% vs consensus; net income decline of $0.5M YoY
Risk Factors
- Credit losses continue to rise, especially on legacy SBA portfolio
- Counterparty risk if fintech partners fail to reimburse charge-offs on credit enhanced loans
- Potential need for additional capital if credit losses erode capital ratios
- Regulatory scrutiny from elevated nonperforming loans
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001856365-26-000048 |
| Document: finw_investorxpresentati.htm | 0001856365-26-000048 |
| Document: finw-20260430.htm | 0001856365-26-000048 |
| Document: 0001856365-26-000048-index-headers.html | 0001856365-26-000048 |
| Document: 0001856365-26-000048-index.html | 0001856365-26-000048 |
| Document: 0001856365-26-000048.txt | 0001856365-26-000048 |
| 8-K Data (Synthetic) | 0001856365-26-000048 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 29, 2026 12w ago | Press Release | $13.71 $10.76 | ▲ +21.52% | ▲ +23.98% | $10.49 (+23.49%) |
Jun 30, 2026 16w ago | Press Release | $14.80 $11.28 | ▼ −23.78% | ▼ −26.66% | $10.49 (−29.12%) |
Jun 25, 2026 17w ago | 8-K | $15.42 $12.26 | ▼ −20.49% | ▼ −24.98% | $10.49 (−31.97%) |
May 21, 2026 22w ago | 8-K | $13.95 $13.71 | ▼ −1.72% | ▼ −6.02% | $10.49 (−24.80%) |
May 21, 2026 22w ago | Press Release | $13.95 $13.71 | ▼ −1.72% | ▼ −6.02% | $10.49 (−24.80%) |
Apr 30, 2026 25w ago | 8-K | $14.96 $13.96 | ▲ +6.68% | ▲ +9.75% | $10.49 (+29.88%) |
Apr 8, 2026 28w ago | 8-K | $16.77 $14.56 | ▼ −13.18% | ▼ −23.64% | $10.49 (−37.45%) |
Apr 2, 2026 29w ago | Press Release | $15.93 $14.50 | ▼ −8.98% | ▼ −23.14% | $10.49 (−34.15%) |
US Market Status
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