FinWise Bancorp reports Q2 2026 net income of $2.1 million

Higher credit-loss provisioning on retained-risk loans weighed on quarterly earnings even as net interest income, fee revenue and credit-enhanced lending grew; the company also acquired Tallied Technologies in July to expand card infrastructure.

Summary

FinWise Bancorp reported second-quarter 2026 net income of $2.1 million, or $0.15 per diluted share, down from $2.7 million in the prior quarter and $4.1 million a year earlier, as provision expense on loans where it retains credit risk rose sharply. Loan originations totaled $1.6299 billion, net interest income increased to $28.7 million, and non-interest income climbed to $25.6 million, supported by growth in credit-enhanced lending and related fee income. Nonperforming loans declined to $37.7 million from $49.8 million at March 31, while FinWise said its July 20 acquisition of Tallied Technologies will give it end-to-end ownership of its card technology stack and lead to a reclassification of credit card receivables beginning in the third quarter of 2026.

Terms & Concepts
  • credit-enhanced loan portfolio: Loans backed by a partner guarantee or reserve that reimburses the bank for expected credit and fraud losses.
  • BIN Sponsorship: A banking service that allows a fintech or card program to issue payment cards through a sponsoring bank.
  • net interest margin: A bank profitability measure showing net interest income as a percentage of average interest-earning assets.