Finwise Bancorp Q2 Earnings: Net Income Falls 48% as Credit Provisions Surge
FINW is trading near its 52-week low of $12.82 (10.0% above the low).
Summary
Finwise Bancorp reported Q2 2026 net income of $2.1M, down 48% YoY, as credit loss provisions surged to $22.7M. Nonperforming loans fell to $37.7M, and tangible book value per share rose to $14.55. A new prepaid card partnership and Tallied integration costs were also disclosed.
Key Events · Earnings and Guidance · FINW
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Net Income Plunges 48%
Q2 2026 net income was $2.1M, down from $4.1M in Q2 2025, with diluted EPS of $0.15 versus $0.29 a year ago.
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Credit Provisions Surge to $22.7M
Provision for credit losses jumped to $22.7M from $4.7M YoY, driven by growth in credit-enhanced loans and increased reserves on non-performing core loans.
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Nonperforming Loans Decline but Remain Elevated
Nonperforming loans fell to $37.7M (6.6% of HFI loans) from $49.8M in Q1 2026, but are still near year-ago levels of $39.7M.
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Tangible Book Value Per Share Rises to $14.55
Tangible book value per share increased to $14.55 from $14.34 in Q1 2026, reflecting retained earnings.
Analysis · FINW · Finance
A sharp increase in credit loss provisions to $22.7M drove Finwise Bancorp's Q2 2026 net income down to $2.1M from $4.1M a year ago. While the credit-enhanced portfolio is fully indemnified by fintech partners, the core portfolio saw higher charge-offs and reserves, reflecting proactive risk management. Nonperforming loans declined sequentially but remain elevated. The company also disclosed a new strategic partnership and integration costs for the Tallied acquisition, signaling both growth investments and near-term expense pressure.
At the time of this filing, FINW was trading at $14.10 on NASDAQ in the Finance sector, with a market capitalization of approximately $193.3M. The 52-week trading range was $12.82 to $22.49. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.