Key Highlights

  • FINW shares are trading 22.60% higher at $13.27 on Thursday, October 29, 2026.
  • Net income for the third quarter was $10.0 million, or $0.73 per diluted share, against $4.9 million and $0.34 a year before.
  • Credit enhancement income totalled $45.4 million, compared with $8.8 million in the third quarter of 2025.
  • Loan originations came to $2.07 billion, versus $1.79 billion a year earlier.
  • Tangible book value per share was $15.14, about 9% higher year over year.

FinWise Third-Quarter Report: What Is Pushing Shares 23% Higher?

FinWise Bancorp (NASDAQ:FINW) shares are trading 22.60% higher at $13.27 on Thursday, October 29, 2026, following the company's third-quarter results of Wednesday, October 28. The implied prior close is about $10.82 (calculated).

Net income was $10.05 million, or $0.73 per diluted share, against $2.13 million and $0.15 in the second quarter and $4.89 million and $0.34 a year before. Income from continuing operations was $10.42 million, or $0.76 per share.

FinWise is based in Murray, Utah, and owns FinWise Bank, a state-chartered bank that supplies lending and payments infrastructure to fintech brands through API-driven Strategic Program Lending.

FinWise Income Sources: How Much Did Credit Enhancement Add?

Operating revenue, the sum of net interest income and non-interest income, grew to $102.7 million from $36.7 million a year earlier. Net interest income was $41.9 million and non-interest income was $60.8 million.

Credit enhancement income came to $45.4 million, against $14.9 million in the second quarter and $8.8 million a year ago. The reported net interest margin was 19.58%, but after credit enhancement program expenses it was 8.31%, compared with 8.13% a year before.

The Tallied acquisition closed on July 20, 2026 and produced a one-time bargain purchase gain of $6.5 million, which is not taxed. That kept the effective tax rate at 21.0%.

FinWise Provision and Charge-Offs: Did Credit Costs Absorb the Income Gain?

The provision for credit losses was $46.7 million, with $45.4 million tied to credit-enhanced Strategic Program loans and $1.4 million to the remainder of the book. Credit enhancement guarantee expense was $20.0 million and servicing expense was $4.3 million.

Net charge-offs totalled $10.6 million, or 6.9% annualized, and just $0.4 million came from the core portfolio. Nonperforming loans were $37.1 million, or 6.3% of loans held for investment, down from 7.7% a year earlier, with $17.7 million of the total SBA-guaranteed.

The allowance for credit losses increased to $79.8 million, or 13.6% of loans, mostly linked to the credit-enhanced book. Without credit-enhanced balances it was $15.6 million.

FinWise Equity and Buyback: What Do Tangible Book Value and Repurchases Show?

Total assets were $958.3 million and deposits were $707.6 million. Shareholders' equity stood at $208.1 million, and tangible equity to tangible assets was 21.7%. The bank leverage ratio of 18.1% compares with a well-capitalized threshold that dropped to 8.0% on July 1, 2026.

Return on equity was 19.9% and return on assets was 4.3%. On 13,743,494 shares outstanding, the market value at today's price is about $182 million (calculated), roughly 0.88 times the $15.14 tangible book value per share (calculated).

In the quarter the company bought back 159,099 shares for $2.2 million under a May 2026 authorization of up to 685,000 shares.

Next Checkpoints: The Credit Card Business Sale and Growth in the Credit-Enhanced Book

The release offers no numerical guidance. Management expects the efficiency ratio to keep improving as interest on the credit-enhanced portfolio builds, and plans to finish selling its credit card business, including certain Tallied assets, by the second quarter of 2027. The credit-enhanced loan balance almost doubled to $146.2 million in the quarter, and a pipeline of prospective partners is cited.