| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 281.49 | 1508 |
| Intrinsic value (DCF) | 14.73 | -16 |
| Graham-Dodd Method | 18.83 | 8 |
| Graham Formula | 20.39 | 16 |
FinWise Bancorp (NASDAQ: FINW) is a regional bank holding company operating through its subsidiary, FinWise Bank, providing a range of banking products and services to individuals and businesses. Headquartered in Murray, Utah, FinWise offers deposit accounts, including demand, savings, and time deposits, alongside lending solutions such as SBA loans, commercial real estate loans, and consumer loans. The bank serves customers through a single full-service branch in Sandy, Utah, and a loan production office in New York. With a focus on digital banking, FinWise provides online and mobile banking, remote deposit capture, and cash management services. Founded in 1999, FinWise Bancorp has carved a niche in small business and commercial lending, leveraging its regional expertise and digital-first approach to compete in the financial services sector. The company’s asset-light model and specialized lending focus position it as a unique player in the regional banking landscape.
FinWise Bancorp presents a mixed investment profile. The bank’s specialized lending focus, particularly in SBA and commercial real estate loans, offers growth potential in a recovering small business environment. However, its limited physical footprint and reliance on digital channels may constrain deposit growth compared to larger regional peers. With a market cap of ~$191M and a beta of 0.87, FinWise exhibits lower volatility than the broader market but faces risks from interest rate sensitivity and competition in niche lending segments. The lack of dividends may deter income-focused investors, though its net income of $12.7M in the latest period suggests profitability. Investors should weigh its niche positioning against scalability challenges and macroeconomic headwinds affecting regional banks.
FinWise Bancorp’s competitive advantage lies in its targeted lending strategy, particularly in SBA and commercial real estate loans, where it leverages underwriting expertise to serve small businesses. Its digital banking capabilities provide cost efficiencies, though its single-branch model limits deposit-gathering compared to multi-state regional banks. The bank’s asset-light approach reduces overhead but may hinder brand recognition and customer acquisition. FinWise’s profitability metrics (e.g., net income of $12.7M on $69.8M revenue) suggest disciplined risk management, but its reliance on lending niches exposes it to sector-specific downturns. Competitors with larger balance sheets can undercut pricing or absorb higher risks, while fintechs disrupt traditional lending models. FinWise’s regional focus in Utah offers localized insights but restricts geographic diversification. Its lack of a dividend program may limit appeal to conservative investors, though this aligns with reinvestment in growth initiatives like digital infrastructure.