FinWise Bancorp’s fourth-quarter loan originations reached $1.6 billion, surpassing management’s initial guidance of $1.4 billion and bringing full-year 2025 originations to $6.1 billion, a 22% increase year-over-year. Chairman and CEO Kent Landvatter attributed this performance to robust contributions from both established partners and newly launched programs, offset partially by a seasonal slowdown from the largest student lending partner. Net income for 2025 rose 26%, reflecting the successful translation of multi-year investments into sustainable revenue streams and demonstrating the company’s ability to maintain a “higher and more sustainable” production baseline despite quarterly variability.

Credit-enhanced loan balances at quarter-end totaled $118 million, exceeding both the prior outlook of $115 million and the initial guidance range of $50 million to $100 million. This product line, which requires fintech partners to maintain collateral deposits to cover charge-offs, drove a $76.5 million increase in balances held for investment and contributed to higher net interest income—up to $24.6 million from $18.6 million—and elevated non-interest income of $22.3 million, primarily from credit enhancement fees. Non-interest expense rose to $23.7 million, reflecting guarantee and servicing costs associated with the expanded credit-enhanced portfolio.

Overall credit metrics remained stable, but updated SBA servicing standards accelerated the reclassification of certain loans to non-performing status, leading to quarterly net charge-offs of $6.7 million versus $3.1 million in the prior quarter. Of these charge-offs, $1.5 million related to the credit-enhanced program (reimbursed by partner cash reserves) and $1.2 million were tied to the servicing standard changes. Provision for loan losses rose to $17.7 million from $12.8 million, driven by growth in the credit-enhanced portfolio and higher charge-offs. Non-performing loans edged up by less than $1 million to $43.7 million, with 55% government guarantee coverage, outperforming prior guidance of $10 million to $12 million in potential NPL migration.

FinWise forecasts a normalized quarterly origination baseline of $1.4 billion for 2026, with a 5% annual growth assumption and a modeling tax rate of 26%. Management expects organic credit-enhanced balance growth of $8 million to $10 million per month, quarterly net charge-offs of approximately $3.5 million on non-enhanced loans, and up to $10 million in watchlist loans migrating to NPL during Q1. Funding costs are anticipated to moderate as certificates of deposit reprice over three- to twelve-month maturities. The company is also advancing its digital strategy, exploring AI applications in compliance, operations automation, BSA/AML monitoring and fraud detection, while maintaining strict data security controls to support long-term efficiency and risk management goals.