Overview

* FinWise Q3 loan originations rise to $1.8 bln from $1.5 bln in prior qtr

* Net income for Q3 increases 42% yr/yr to $4.9 mln

* Company reports efficiency ratio improvement to 47.6% from 67.5% yr/yr

Outlook

* Company anticipates further reduction in efficiency ratio due to credit enhanced loan balances

* FinWise remains engaged in discussions to expand strategic initiatives

Result Drivers

* LOAN ORIGINATIONS - Increase to $1.8 bln driven by expansion of strategic programs and higher student loan volumes

* NET INTEREST INCOME - Rise to $18.6 mln due to higher credit-enhanced balances and strategic program loans

* NON-INTEREST INCOME - Increase driven by higher credit enhancement income and gains on loan sales

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 EPS $0.34

Q3 Net $4.9 mln

Income

Q3 Net $18.6

Interest mln

Income

Q3 Loan $12.7

Loss mln

Provisio

n

Q3 Net 9.01%

Interest

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the banks peer group is "buy"

* Wall Street's median 12-month price target for Finwise Bancorp ( FINW ) is $20.00, about 11.1% above its October 28 closing price of $17.78

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)