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FinWise Bancorp expands board with new director

EditorNatashya Angelica
Published 22/07/2024, 20:14
FINW
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MURRAY, Utah - FinWise Bancorp (NASDAQ:FINW), the parent company of FinWise Bank, announced Monday the appointment of Susan Ehrlich to its Board of Directors, effective immediately. Ehrlich also joins the board of the subsidiary FinWise Bank. With over two decades of experience in the financial sector, Ehrlich's expertise spans fintech, financial services, and retail banking.

Ehrlich's career includes significant roles in product innovation and digital transformation. She is currently a partner at Core Innovation Capital, a venture capital firm specializing in early-stage fintech investments.

Her board experience includes positions with Boeing (NYSE:BA) Employees Credit Union and Petal Card, a startup fintech recently acquired by Empower. Ehrlich has also chaired the Financial Health Network (LON:NETW) and served on the Consumer Advisory Council of the Federal Reserve in Washington.

Kent Landvatter, CEO of FinWise, expressed enthusiasm for Ehrlich's appointment, citing her extensive background in fintech lending and payments and her ability to drive enterprise growth as valuable assets for the company's governance.

Ehrlich shared her excitement about joining FinWise's Board, highlighting the company's innovative approach in the fintech banking and payments industry. She aims to contribute to the company's growth and shareholder value creation.

FinWise Bancorp specializes in banking and payment solutions for fintech brands. The company is undergoing a significant expansion in 2024, adding Payments Hub and BIN Sponsorship offerings to its services.

FinWise's current platform features Strategic Program Lending through an API-driven infrastructure that supports deposit, lending, and payment programs for leading fintech brands. Additionally, the company manages various lending programs, including SBA 7(a), Real Estate, and Leasing, facilitating disciplined balance sheet growth.

The company emphasizes a strong compliance and risk management culture, positioning itself as a guide for fintechs navigating the complexities of regulatory compliance. This information is based on a press release statement.

In other recent news, Finwise Bancorp reported robust loan originations nearing $1.1 billion and a net income of $3.3 million in the first quarter of 2024, indicating a strong start to the year. The Utah-based commercial bank has expanded its Board of Directors, appointing Susan Ehrlich, a seasoned executive with a background in fintech and financial services. The company has also welcomed Bob Wahlman as the new CFO, expected to further fortify Finwise Bancorp's financial strategy.

Simultaneously, Finwise Bancorp's shareholders have approved an amendment to increase the number of shares available under its 2019 Stock Option Plan, aiming to incentivize executives and employees.

The company has initiated a new share repurchase program, maintaining a strong capital position. Despite a projected increase in expenses in the second quarter, the firm anticipates a deceleration in the second half of the year.

These recent developments reflect Finwise Bancorp's commitment to governance, financial technology expertise, and a strategic focus on growth. The company's outlook includes a focus on strong loan originations and the development of new fintech partnerships. The company's effective tax rate is projected to remain at 26.5% for the rest of 2024. These are the latest developments at FinWise Bancorp, as reported in recent news items.

InvestingPro Insights

As FinWise Bancorp (NASDAQ:FINW) welcomes Susan Ehrlich to its Board of Directors, the company's financial positioning remains a key consideration for investors. According to recent InvestingPro data, FinWise Bancorp presents a mixed financial landscape.

With a market capitalization of $148.15 million and a Price/Earnings (P/E) ratio of 9.25, the company is positioned in the market with a valuation that reflects modest expectations for earnings growth. Notably, the adjusted P/E ratio over the last twelve months as of Q1 2024 is slightly lower at 9.04, hinting at a consistent earnings outlook.

InvestingPro Tips indicate that while FinWise Bancorp suffers from weak gross profit margins, analysts predict the company will be profitable this year, which aligns with Ehrlich's aim to contribute to shareholder value creation.

Furthermore, the company has demonstrated a strong return over the last month, with a one-month price total return of 14.43%, showcasing a recent uptick in investor confidence. However, it does not pay a dividend to shareholders, which may influence the investment decisions of those seeking regular income streams.

For investors looking to delve deeper into FinWise Bancorp's financials and performance, there are additional InvestingPro Tips available at https://www.investing.com/pro/FINW. These insights can provide a more comprehensive view of the company's financial health and future prospects. Interested investors can also take advantage of the special offer by using coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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