FinWise Bancorp reported its financial results for the fiscal year ending December 31, 2024, revealing a net income of $12.7 million, a decrease from $17.5 million in the previous year. The company's total assets increased by $159.8 million to $746.0 million, primarily driven by growth in loans and investment securities. The net interest margin (NIM) fell to 9.99% from 11.65% in 2023, attributed to a shift in lending strategy towards lower-risk borrowers with lower yields, alongside rising costs of funds.
The company originated approximately $5.0 billion in loans during 2024, an increase of $0.7 billion compared to the previous year. This growth was supported by new strategic programs and organic expansion within existing programs. The loan portfolio as of December 31, 2024, included $255.1 million in SBA 7(a) loans, which represented 54.8% of total loans held-for-investment, down from 64.5% in 2023. The company also reported a total of $70.2 million in commercial leases, reflecting a significant increase from $38.1 million in the prior year.
Strategic developments included the launch of new lending programs with various partners, such as Earnest for private student loans and Hank Payments Corp. for payment solutions. Additionally, FinWise increased its ownership interest in Business Funding Group (BFG) to 20% through a stock exchange transaction, enhancing its referral network for SBA loans. The company emphasized its focus on leveraging technology to streamline loan origination and improve customer service.
Operationally, FinWise Bancorp employed 196 full-time equivalent employees as of December 31, 2024, with no significant changes in headcount from the previous year. The company maintained a diversified loan portfolio, with a focus on managing credit risk through disciplined underwriting and monitoring practices. The allowance for credit losses stood at $13.2 million, reflecting a slight increase from $12.9 million in 2023, as the company continued to adapt to changing economic conditions and borrower profiles.
Looking ahead, FinWise Bancorp expressed optimism about its growth strategy, supported by strong capital levels and a commitment to expanding its product offerings. However, the company acknowledged potential challenges, including economic uncertainties and regulatory changes that could impact its operations and financial performance.
About Finwise Bancorp
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