The Q3 beat is heavily influenced by a $6.5M one-time gain and the accounting mechanics of the credit enhancement program, which inflate both net interest income and provision expense. Excluding these, core profitability improved but not as dramatically as headline numbers suggest. Monitor the Q4 2026 report for sustainability of credit-enhanced loan growth and the trajectory of core charge-offs, which remain elevated at 6.9% annualized of average HFI loans.
Price Chart
Executive Summary
FinWise Bancorp reported Q3 2026 net income of $10.0M ($0.73 diluted EPS), up sharply from $2.1M ($0.15) in Q2 2026 and $4.9M ($0.34) in Q3 2025. Results included a $6.5M non-recurring bargain purchase gain from the Tallied Technologies acquisition. Net interest income surged to $41.9M from $28.4M QoQ, driven by credit-enhanced loan portfolio growth. The GAAP diluted EPS of $0.73 beat the $0.19 consensus, but the beat is largely due to the one-time gain and accounting mechanics of the credit enhancement program, not core operating leverage.
Key Financial Metrics
Key Facts
- Net income $10.0M vs $2.1M QoQ and $4.9M YoY
- Diluted EPS $0.73 vs $0.15 QoQ and $0.34 YoY
- Net interest income $41.9M vs $28.4M QoQ and $18.6M YoY
- Net interest margin 19.58% vs 13.83% QoQ and 9.09% YoY
- Credit-enhanced loan balances reached $146.2M, nearly double QoQ from $74.2M
- Nonperforming loans declined to $37.1M (6.3% of HFI) from $37.7M (7.2%) QoQ
- Efficiency ratio improved to 41.6% from 54.9% QoQ
- Bargain purchase gain of $6.5M from Tallied acquisition included in non-interest income
- Company repurchased 159,099 shares for $2.2M in Q3
- Leverage ratio 18.1%, well above 8.0% well-capitalized requirement
Financial Impact
Net income of $10.0M, diluted EPS $0.73, net interest income $41.9M, net interest margin 19.58%
Risk Factors
- Elevated net charge-offs of $10.6M (6.9% annualized of average HFI loans), though partially offset by credit enhancement recoveries
- Credit enhancement program exposes the company to counterparty risk if fintech partners fail to maintain reserve deposits
- SBA portfolio continues to shrink ($135.8M vs $240.9M YoY), reducing a traditional revenue stream
- Discontinued operations (credit card portfolio) generated a $0.4M loss and sale expected by Q2 2027
- High reliance on brokered CDs (66% of deposits) increases funding cost sensitivity
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001856365-26-000109 |
| Document: finw_investorxpresentati.htm | 0001856365-26-000109 |
| Document: finw-20261028.htm | 0001856365-26-000109 |
| Document: 0001856365-26-000109-index-headers.html | 0001856365-26-000109 |
| Document: 0001856365-26-000109-index.html | 0001856365-26-000109 |
| Document: 0001856365-26-000109.txt | 0001856365-26-000109 |
| 8-K Data (Synthetic) | 0001856365-26-000109 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 2d ago | 8-K | No price | awaiting T+60 | awaiting T+60 | No price |
Oct 28, 2026 2d ago | Press Release | $13.33 | awaiting T+60 | awaiting T+60 | $13.19 (−1.05%) |
Jul 29, 2026 13w ago | Press Release | $13.71 $10.76 | ▲ +21.52% | ▲ +23.98% | $13.19 (+3.79%) |
Jun 30, 2026 17w ago | Press Release | $14.80 $11.28 | ▼ −23.78% | ▼ −26.66% | $13.19 (−10.88%) |
Jun 25, 2026 18w ago | 8-K | $15.42 $12.26 | ▼ −20.49% | ▼ −24.98% | $13.19 (−14.46%) |
May 21, 2026 23w ago | 8-K | $13.95 $13.71 | ▼ −1.72% | ▼ −6.02% | $13.19 (−5.45%) |
May 21, 2026 23w ago | Press Release | $13.95 $13.71 | ▼ −1.72% | ▼ −6.02% | $13.19 (−5.45%) |
Apr 30, 2026 26w ago | 8-K | $14.96 $13.96 | ▲ +6.68% | ▲ +9.75% | $13.19 (+11.83%) |
Apr 8, 2026 29w ago | 8-K | $16.77 $14.56 | ▼ −13.18% | ▼ −23.64% | $13.19 (−21.35%) |
Apr 2, 2026 30w ago | Press Release | $15.93 $14.50 | ▼ −8.98% | ▼ −23.14% | $13.19 (−17.20%) |
US Market Status
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