FinWise: Outperforms In A High Interest Rate Environment

Sep. 29, 2023 3:18 PM ETFinWise Bancorp (FINW)NAVI, UPST, OPFI

Summary

  • FinWise emerged unscathed from the financial challenges faced by regional banks, with a stable, diversified, and growing deposit foundation.
  • FinWise is well capitalized at 24%, 2.7x the standard well capitalized ratio of 9%.
  • FinWise is expanding its lending partners and focusing on its BaaS platform to future-proof its business.
  • FinWise is growing book value at an annual average of 15% and is currently selling at a 16% discount.

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courtneyk

In a financial landscape fraught with uncertainty, volatility, and increasing interest rates, FinWise stood as a beacon of stability and growth. As the tumultuous winds of Silicon Valley Bank's challenges swept through the industry, regional banks found themselves on shaky ground, some witnessing an erosion

This article was written by

Mr. Stephen Read is the manager of the hedge fund HIT Capital.  When he isn’t fathering or out exploring you'll likely find him reading, coding, writing or catching up with his buddies.Stephen grew up on a corn, soybean and cattle farm along the Illinois River and graduated from Missouri S&T with a B.S. in Mechanical Engineering in 2007.  He worked for ConocoPhillips out of college, with a leave of absence, summer of 2008, in which he played professional baseball. In 2012 while working at ConocoPhillips he launched HIT Investments followed by HIT Capital. In 2018 he reached financial independence and in 2020 retired from ConocoPhillips to focus on HIT and his family.One of Stephen’s favorite quotes is from 2 Corinthians 9:6 “Remember this: Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously.”

Analyst’s Disclosure: I/we have a beneficial long position in the shares of FINW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Stephen Read is the founder of HIT Investments, the general partner of HIT Capital, of which has a beneficial long position in FINW through stock ownership. More disclosures can be found at https://www.hitinvestments.com/disclaimer/ and within HIT Capital's Offering Documents.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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