Finwise Bancorp · NASDAQ:FINW
Finwise Bancorp — Investor Presentation (March 2023)
26 slides from Finwise Bancorp's investor presentation, Mar 1, 2023
Slide 1: Investor Presentation March 2023
Investor Presentation March 2023
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 and industry data
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 Kent Landvatter Mr. Landvatter joined FinWise and its wholly-owned Utah state-chartered banking subsidiary, FinWise Bank (the “Bank”), in September 2010 as the President and Chief Executive Officer. Mr. Landvatter has over 40 years of financial services and banking experience, includ
Slide 5: Key Investment Highlights
Key Investment Highlights Highly-profitable fintech lending model with compelling growth opportunities Compelling market advantages with continued compliance and IT investments beginning in 2016 Unique bank that closely integrates with fintech lending platforms Diverse revenue streams Disciplined un
Slide 6: Resilient Business Model Through Prior Cycles
Resilient Business Model Through Prior Cycles As of or for the twelve months ended December 31, 2022 Financial Highlights1 Total Assets: Net Income: ROAE: ROAA: $402.2M $25.1M 19.6% 6.4% Total assets as of December 31, 2020, December 31, 2021, and December 31, 2022, include approximately $107.1 mill
Slide 7: Diverse Business Lines and Revenue Streams
Diverse Business Lines and Revenue Streams Note: Financial data is for the year end December 31, 2022. “Other”, “Change in Fair Value on investment in BFG”, and “SBA PPP” revenue not included in Revenue Contribution Breakdown. Line of Business 2022 Gross Revenue Contribution Balance Sheet Strategy S
Slide 8: Total Loan Portfolio Breakdown as of December 31, 2022
Total Loan Portfolio Breakdown as of December 31, 2022 Loans guaranteed by the SBA include $0.6 million in PPP loans as of December 31, 2022 Guaranteed by the SBA and Strategic Program HFS 28.4% Rates Above 36% Rates Below 36% $260.2M
Slide 9: Top-Tier Profitability
Top-Tier Profitability Note: According to the FDIC website, the data for all US Banks represents 5,177, 5,001, and 4,839 banks for 2019, 2020, and 2021, respectively. Annual period financial data represents the annual period ending December 31. For ROAE and ROAA, we calculate our average assets and
Slide 10: Profitability Metrics Compare Favorably to All US Banks
Profitability Metrics Compare Favorably to All US Banks Note: Please see Appendix for non-GAAP to GAAP reconciliations. According to the FDIC website, the data for all US Banks represents 5,177, 5,001, and 4,839 banks for 2019, 2020, and 2021, respectively. Annual period financial data represents th
Slide 11: Significantly Well-Capitalized
Significantly Well-Capitalized Note: Q4 ‘21 financial data is as of December 31, 2021; Q3 ‘22 financial data is as of September 30, 2022; Q4 ‘22 financial data is as of December 31, 2022; FinWise Bank has elected to opt into the Community Bank Leverage Ratio framework starting in 2020 FinWise Bancor
Slide 12: Historical Track Record of Strong Asset Quality
Historical Track Record of Strong Asset Quality Note: Q4 ‘21 financial data is as of or for the three-month period ending December 31, 2021; Q3 ‘22 financial data is as of or for the three-month period ending September 30, 2022; Q4 ‘22 financial data is as of or for the three-month period ending Dec
Slide 13: Retained Loan Portfolio Overview
Retained Loan Portfolio Overview Note: 4Q ‘22 financial data is as of or for the three-month period ending December 31, 2022. Loans Guaranteed by the SBA include $0.6 million of PPP loans as of December 31, 2022. $260.2M 4Q ‘22 Loan Originations Loan Portfolio as of December 31, 2022
Slide 14: Strategic Programs – Unique and Differentiated Business Model
Strategic Programs – Unique and Differentiated Business Model sets FinWise Apart Note: Q4 ‘21 financial data is as of or for the three-month period ending December 31, 2021; Q3 ‘22 financial data is as of or for the three-month period ending September 30, 2022; Q4 ‘22 financial data is as of or for
Slide 15: Strategy Leverages Unique Position as Originating Bank
Strategy Leverages Unique Position as Originating Bank Informs Strategy Diverse Strategic Service Providers Scalable Lending Partner Strategy Supports Risk Diversification and Profitability Prime Consumer Programs Subprime Consumer Programs Commercial Programs Deposit Programs DEVELOP through other
Slide 16: Case Study – Cumulative Charge-Off Curve by Programs
Case Study – Cumulative Charge-Off Curve by Programs 2x x Time on Books (months) by Vintage Data Informs Our Retention Decisions
Slide 17: SBA 7(a) Lending Overview
SBA 7(a) Lending Overview Note: Q4 ‘21 financial data is as of or for the three-month period ending December 31, 2021; Q3 ‘22 financial data is as of or for the three-month period ending September 30, 2022; Q4 ‘22 financial data is as of or for the three-month period ending December 31, 2022 Experie
Slide 18: Residential and Commercial Real Estate Lending Overview
Residential and Commercial Real Estate Lending Overview Branch-based Consumer and Commercial Community Bank Offers Strategic Benefits to Broader FinWise Business Lines Branch Map Business Line Differentiators Focus on building a core deposit base Al loans held on balance sheet High-touch, relationsh
Slide 19: Consistent Tangible Book Value per share Growth
Consistent Tangible Book Value per share Growth Note: “Tangible book value per share” is defined as book value per share less goodwill and other intangible assets, divided by the outstanding number of common shares at the end of each period. The most directly comparable GAAP financial measure is boo
Slide 20: Significant Balance Sheet Growth
Significant Balance Sheet Growth Note: Q4 ‘21 financial data is as of or for the three-month period ending December 31, 2021; Q3 ‘22 financial data is as of or for the three-month period ending September 30, 2022; Q4 ‘22 financial data is as of or for the three-month period ending December 31, 2022
Slide 21: Deposit Base
Deposit Base Branch Deposits Significant source of deposits Strategic Program Deposits Reserve Accounts – historically highly correlated to origination volume Operating Accounts Health Savings Account Deposits Core HSA deposits working with Lively, Inc., a modern Health Savings Account provider SBA
Slide 22: Appendix
IV. Appendix (7 FINWISE oe) ) 7
Slide 23: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Tangible Shareholders’ Equity and Tangible Book Value Per Share Efficiency Ratio Note: “Tangible shareholders’ equity” is defined as total shareholders’ equity less goodwill and other intangible assets. The most directly comparable GAAP financial measure is total shar
Slide 24: FinView Analytics Platform: Buildout Drives Continued Scale
FinView™ Analytics Platform: Buildout Drives Continued Scale Near-term strategic priority; timing of product development dependent on several factors, including timing for new hires 2017: Began using API to connect with Strategic Program service providers 2018: FinView™ used to analyze retention of
Slide 25: Uniquely Positioned Competitive Landscape
Uniquely Positioned Competitive Landscape 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 Efficient Business Model P O P Nationwide Lending Platform P O P Diversified Loan Portf
Slide 26: Point of Sale Lending Program Overview
Point of Sale Lending Program Overview Product Unsecured Installment Loans Interest bearing and 0% Interest (3, 6, 12 or 24 months) Strategic Goals Support small business revenue growth Profitably grow balance sheet Merchant Details 50+ merchants across 16 states (and growing) Home improvement, spa,