FinWise Bancorp (NASDAQ:FINW) Q1 2024 Earnings Call Transcript

Jim Noone: Yes. So generally, I think we’ve talked before about in the SBA portfolio, kind of across the board, you’re looking at prime plus 250, prime plus 225, somewhere in that neighborhood. On the equipment leases and owner occupied commercial real estate is going to be lower than that. Generally, the difference is also in the repricing. You guys are familiar with the calendar quarterly repricing that happens based on the underlying prime rate in the SBA portfolio. In the equipment leasing and owner-occupied commercial real estate, first it’s a lower overall yield, but it is a 5-year fixed rate typically.

Operator: Thank you. At this time, we have no further questions over the phone. I’d like to turn the line back over to Juan Arias.

Juan Arias: Thank you, operator. We do have a couple of questions that came in via e-mail, as we now allow shareholders to do that. The first question is on the buyback. Why did you do a buyback? And are you still able to invest for growth?

Kent Landvatter: Yes. Considering the current stock price relative to our tangible book value, we think it’s an accretive decision for shareholders. Importantly, it doesn’t impede our growth prospects. And so we think it’s the right thing to do.

Juan Arias: And the other question is on expenses. In terms of your outlook for expenses for the rest of 2024, can you provide a breakout of expenses by salaries and benefits and other?

Bob Wahlman: Certainly. As we mentioned, we still have some nonproduction-related hires that we’re expecting to make this year. So it’s fair to assume that the biggest component of the expense pickup will be in the salaries and expenses category. In the other expenses category, which captures most everything else, it’s fair to assume that we’ll be relatively constant to first quarter 2024 or maybe only a slight increase throughout the year. Most of our expense growth will be in that compensation line.

Juan Arias: We have no further questions. Thank you.

Operator: With that, this concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.