FinWise Bancorp

Greetings and welcome to the FinWISE Bancorp third quarter 2025 earnings conference call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I would now like to turn the conference over to your host, Juan Arias. Please go ahead.

Good afternoon and thank you for joining us today for FinWise Bancorp's third quarter 2025 earnings conference call. Earlier today, we filed our earnings release and investor deck and posted them to our investor website at investors.finwisebancorp.com. Today's conference call is being recorded and webcast on the company's investor website as previously mentioned. 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 including factors that may negatively impact them, contained in the company's earnings press release and filings with the Securities and Exchange Commission. Hosting the call today are Kent Landvater, Chairman and CEO, Jim Noon, Bank CEO, and Bob Wallman, CFO. Kent, please go ahead.

Good afternoon, everyone. Our strong third quarter results demonstrate that the strategic investments we've made over the past two years are starting to deliver meaningful results. During the quarter, we posted robust loan originations of $1.8 billion and credit enhanced balances reached $41 million. Revenue growth was solid, driven by both fee and spread income growth, and disciplined expense management further supported profitability. Tangible book value per share continued to increase to $13.84 compared with $13.51 in the prior quarter, reflecting ongoing value creation for our shareholders. Following the close of the third quarter, we announced two additional strategic program agreements that we are very excited about. The first is with DreamFi, a startup financial technology company that will provide financial products and services to underbank communities. The second is with Tally Technologies, a program manager and network issuer processor, which will bring FinWise a substantial credit-enhanced portfolio balance in Q4 2025 to support both business and consumer credit card programs. As a reminder, while the credit-enhanced loans acquired in the Tally transactions will increase our balance sheet, The credit risk is low because of the guaranteed provisions of the agreement supported by the cash loss reserve deposit account that Tally must maintain at Finwise to absorb credit loss, as well as the cash flows generated by the assets. We remain actively engaged in discussions with several other potential strategic partners to further expand our strategic initiatives, and our pipeline continues to be strong. Importantly, This partnership with Tallied underscores the uniqueness of our one-to-many business model, which we've outlined previously. While our model can appear lumpy, as securing strategic agreements may sometimes take longer than anticipated, each completed agreement has the potential to unlock substantial value for us. These agreements can drive meaningful increases in portfolio balances and accelerate revenue growth, reinforcing the scalability and strength of our approach. As we discussed last quarter, we are carefully evaluating a measured increase in dollar balances of higher yielding loans, particularly as our loan portfolio continues to grow. However, we will remain within the internal limits established in 2018 as our policy restricts these loans to less than 10% of the total portfolio. Overall, we are very pleased with our performance this quarter and the solid momentum we're seeing across the business. These results underscore the strength of our strategic execution and our unwavering commitment to long-term value creation, rather than prioritizing short-term gains. As we move forward, we will continue to focus on discipline growth and operational excellence, key drivers of sustained progress and meaningful returns for our shareholders. With that, let me turn the call over to Jim Noon, our bank CEO.