Q2 2024 Finwise Bancorp Earnings Call Transcript
Key Points
- FinWise Bancorp (FINW) reported strong momentum in Q2 2024, with loan originations reaching nearly $1.2 billion.
- The company achieved solid revenue and stable credit quality without contributions from new strategic programs.
- FinWise Bancorp (FINW) has diversified its revenue mix by reducing dependence on its top three fintech programs.
- The company's credit quality has performed well, with a significant reduction in net charge-offs and a lower-risk loan portfolio.
- FinWise Bancorp (FINW) is on track to launch its payments hub later this year, which is expected to drive future growth and revenue diversification.
- SBA 7A loan originations were modestly lower this quarter due to cautious borrowing behavior amid elevated interest rates.
- Non-interest income decreased to $4.8 million from $5.5 million in the prior quarter, primarily due to accelerated servicing fee amortization.
- Non-interest expenses increased to $12.9 million from $11.8 million in the prior quarter, driven by higher salaries and operating expenses.
- NPL balances increased modestly to $27.9 million from $26 million in the prior quarter, driven by two new SBA accounts.
- The net interest margin, although improved, is expected to trend downward due to increased competition for deposits and higher funding costs.
Good afternoon, and thank you for joining us today for FinWise Bancorp Second Quarter 2024 earnings conference call. Earlier today, we filed our earnings release and posted to our investor website at investors dot FinWise Bancorp.com. Today's conference call is being recorded and webcast on the company's website, investors dot FinWise Bancorp.com.
On today's call management's prepared remarks and answers to your questions may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ from those discussed today. Forward-looking statements represent management's current estimates, expectations and beliefs and FinWise Bancorp assumes no obligation to update any forward looking statements in the future. We encourage listeners to review the more detailed discussions related to these forward-looking statements contained in the Company's earnings press release and filings with the Securities and Exchange Commission. Hosting the call today are Kent planned battery CYO., Jim noon, President, and Bob Wahlman, CFO.
With that, I will turn
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