Finwise Bancorp · NASDAQ:FINW
Finwise Bancorp — Investor Presentation (March 2022)
27 slides from Finwise Bancorp's investor presentation, March 2022
Slide 1: Investor Presentation March 2022
March 2022 INVESTOR PRESENTATION
Slide 2: Disclaimer: Safe Harbor Statement
DISCLAIMER "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the curren
Slide 3: Disclaimer: Market data and non-GAAP measures
DISCLAIMER Market and industry data This presentation includes estimates regarding market and industry data. Unless otherwise indicated, information concerning our industry and the markets in which we operate, including our general expectations, market position, market opportunity, and market size,
Slide 4: Leadership Team
LEADERSHIP TEAM Over 130 Years of Combined Banking Experience Mr. Landvatter joined FinWise and its wholly-owned Utah state-chartered banking subsidiary, FinWise Bank (the Kent Landvatter “Bank”), in September 2010 as the President and Chief Executive Officer. Mr. Landvatter has over 40 years of CEO
Slide 5: Franchise Snapshot
FRANCHISE SNAPSHOT FinWise Bancorp is a fast-growing, Utah-based bank holding company that leverages strategic relationships with third-party loan origination platforms, proprietary loan analytics technology, a seasoned management team, and a strong and growing balance sheet to deliver superior rate
Slide 6: Exceptionally Profitable Growth
EXCEPTIONALLY PROFITABLE GROWTH Implement New Strategy Execute New Strategy Strong Profitability & Significant Tailwinds 2010 2014 2019 Kent Landvatter becomes CEO; Launched SBA 7(a) Lending Loan originations exceed $1.5 billion implements a strategy to improve Launched 8th Strategic Program service
Slide 7: Uniquely Positioned for Significant Growth and Profitability
UNIQUELY POSITIONED FOR SIGNIFICANT GROWTH AND PROFITABILITY Competitive Landscape Traditional Banks Nonbank Financial Services Branch-Lite P O P Low Cost Funding P P O Tech-Driven Banking Solutions P O O Proprietary Data Analytics Platform P O O Robust Underwriting & Risk Management P P O Capital E
Slide 8: Highlights
HIGHLIGHTS Highly-profitable fintech lending model with compelling growth rates Proprietary FinView™ Analytics Platform, which includes an enterprise data warehouse, developed to enhance the gathering and interpretation of customer performance data Diverse, scalable revenue stream achieved in busine
Slide 9: Diverse Business Lines and Revenue Streams
DIVERSE BUSINESS LINES AND REVENUE STREAMS Line of Business What We Do Balance Sheet Strategy Originate consumer and commercial loans via third Strategic Program must have a reserve party platforms that use technology to streamline deposit account origination Strategic Programs Mostly originat
Slide 10: Retained Loan Portfolio Overview
RETAINED LOAN PORTFOLIO OVERVIEW 4Q ‘21 Loan Originations Loan Portfolio as of December 31, 2021 Total Loan Originations Commercial ~$2.3 billion (Non RE) 1.3% SBA 53.6% Residential RE 10.2% The vast majority of loans originated during $265.8M Q4 2021 were sold in 2021 Strategic Program 32.3% Consum
Slide 11: Strategic Programs Overview
STRATEGIC PROGRAMS OVERVIEW Business Line Differentiators Revenue Model / Opportunities Significant loan volume generated by origination service providers Interest Income HFS Strategic Program service providers serve as sub-servicers and Interest Income HFI perform typical primary servicing duti
Slide 12: Strategy Leverages Unique Position as Originating Bank
STRATEGY LEVERAGES UNIQUE POSITION AS ORIGINATING BANK Scalable Lending Partner Strategy Supports Risk Diversification and Profitability Strategic Service Provider Types Strategy - Sell, retain or develop to maximize bank returns Prime Consumer Programs - Greater diversification and less volatility
Slide 13: Optimizing Returns Through Ability to See Across Data Silos
OPTIMIZING RETURNS THROUGH ABILITY TO SEE ACROSS DATA SILOS Comparative Cumulative Charge-off Curves by Monthly Vintage Insights derived through FinView™ enable optimizing exposure by asset class and origination platform 2x x Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Mo
Slide 14: SBA 7(a) Lending Overview
SBA 7(A) LENDING OVERVIEW Business Line Differentiators Revenue Model / Opportunities Experienced management team Ability to analyze loan performance data Sell SBA guaranteed portions at premiums Loan processing structure and ability to leverage relationship with Business Funding Group, LLC Re
Slide 15: Residential and Commercial Real Estate Lending Overview
RESIDENTIAL AND COMMERCIAL REAL ESTATE LENDING OVERVIEW Business Line Differentiators Branch Map High-touch, relationship banking approach All loans held on balance sheet Focus on building a core deposit base Branch-based Consumer and Commercial Community Bank Offers Strategic Benefits to Broader Fi
Slide 16: Point of Sale Lending Program Overview
POINT OF SALE LENDING PROGRAM OVERVIEW Installment Loans Offer Significant Growth Opportunities • Unsecured Installment Loans Product • Interest bearing and 0% Interest (3, 6, 12 or 24 months) • Support small business revenue growth Strategic Goals • Profitably grow balance sheet • 50+ merchants acr
Slide 17: Historical Track Record of Strong Asset Quality
HISTORICAL TRACK RECORD OF STRONG ASSET QUALITY Key Highlights Net Charge-Offs By Line of Business Recorded a $5.2 million provision for loan losses in the first two SBA Commercial, non real estate quarters of 2020 primarily for potential COVID-19-related losses Residential real estate Strategic P
Slide 18: Significant Earnings Growth
SIGNIFICANT EARNINGS GROWTH Net Income ($M) Tangible Book Value Per Share (Non-GAAP) $9.04 $10.1 $7.91 $8.4 $5.30 $4.6 Q4 '20 Q3 '21 Q4 '21 Q4 '20 Q3 '21 Q4 '21 Material earnings growth driven by revenue diversification via substantial increases in earning assets History of significant, consistent t
Slide 19: Significant Balance Sheet Growth
SIGNIFICANT BALANCE SHEET GROWTH Total Loan Originations ($M) Total Assets Ex. PPP ($M) $2,304.2 $379.1 $336.0 $1,822.9 $210.4 $850.9 Q4 '20 Q3 '21 Q4 '21 Q4 '20 Q3 '21 Q4 '21 Total Loans Outstanding Ex. PPP ($M) Total Deposits ($M) $253.0 $251.9 $246.9 $264.7 $164.5 $154.6 Q4 '20 Q3 '21 Q4 '21 Q4 '
Slide 20: Deposit Base
DEPOSIT BASE Core Deposit Strategy Commentary Branch Deposits Complementary source of funding solicited through relationship-driven teams & community-focused marketing Strategic Program Deposits Recent growth in core deposits is principally driven by funds deposited through our Strategic Program
Slide 21: Top-Tier Profitability Performance
TOP-TIER PROFITABILITY PERFORMANCE Return on Average Assets Return on Average Equity FinWise All US Banks FinWise All US Banks 9.1% 39.2% 36.9% 6.6% 28.4% 26.6% 4.5% 4.5% 12.0% 11.4% 12.2% 1.4% 1.3% 1.2% 6.9% 0.7% 2018 2019 2020 2021 2018 2019 2020 2021 Net Interest Margin Efficiency Ratio (Non-GAAP
Slide 22: Significantly Well-Capitalized
SIGNIFICANTLY WELL-CAPITALIZED Leverage Ratio - Bank Level 19.5% 17.7% FinWise Bancorp and FinWise 16.6% Bank have consistently maintained regulatory capital ratios significantly above the federal “well-capitalized” regulatory standards Q4 '20 Q3 '21 Q4 '21 Note: Q4 ‘20 financial data represents the
Slide 23: Highly Regarded Platform
HIGHLY REGARDED PLATFORM Selected Rankings 2020 2019 2020 2020 #2 best-performing #41 best- #6 Largest Lender #8 Largest Lender under $3B performing under in NY in NJ $3B 2018 2017 2019 #12 best- #3 best-performing #9 Largest Lender performing under under $1B in NY $3B 23 23
Slide 24: Highlights
HIGHLIGHTS Highly-profitable fintech lending model with compelling growth rates Proprietary FinView™ Analytics Platform, which includes an enterprise data warehouse, developed to enhance the gathering and interpretation of customer performance data Diverse, scalable revenue stream achieved in busine
Slide 25: Appendix
IV. Appendix
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION Tangible Shareholders’ Equity and Tangible Book Value Per Share As of, ($ in thousands) Decem ber 31, 2020 Septem ber 30, 2021 Decem ber 31, 2021 Total shareholders' equity $45,872 $69,138 $115,442 Goodw ill - - - Other intangibles - - - Less: total intangible assets
Slide 27: FinView Analytics Platform: Buildout Drives Continued Scale
FINVIEW™ ANALYTICS PLATFORM: BUILDOUT DRIVES CONTINUED SCALE 2017: Began using API to connect with Strategic Program service providers 2018: FinView™ used to analyze retention of selected Strategic Program loans 2020: Enhanced enterprise data warehouse to more efficiently capture loan originat