Finwise Bancorp · NASDAQ:FINW
Finwise Bancorp — IPO Roadshow (November 2021)
31 slides from Finwise Bancorp's IPO roadshow presentation, Nov 16, 2021
Slide 1: Investor Presentation November 2021
Investor Presentation November 2021
Slide 2: Disclaimer
Disclaimer 2 FinWise Bancorp (“FinWise,” “we,” “us,” or the “Company”) has filed a registration statement (including a prospectus, which is preliminary and subject to completion) with the U.S. Securities and Exchange Commission (the “SEC”) for the offering to which this presentation relates. Before
Slide 3: Offering Summary
Issuer FinWise Bancorp Exchange / Ticker NASDAQ / FINW Base Shares Offered 3,181,818 Common Stock (100% primary) Underwriters’ Option 15% (all primary shares) Filing Range $10.00 - $12.00 per share Base Offering Size Approximately $35.0 million¹ Use of Proceeds Fund organic growth, continue the buil
Slide 4: Our Leadership Team
Our Leadership Team 4 Over 130 Years of Combined Banking Experience Kent Landvatter CEO / President Javvis Jacobson CFO / EVP Jim Noone CCO / EVP Dawn Cannon COO / EVP Michael O’Brien CCO / CRO / EVP Mr. Landvatter joined FinWise and its wholly-owned Utah state-chartered banking subsidiary, FinWise
Slide 5: Franchise Snapshot
Strategic Programs SBA 7(a) Lending Residential and Commercial Real Estate Lending Point of Sale (“POS”) Lending Program Franchise Snapshot As of or for the nine months ended September 30, 2021We calculate our average assets and average equity for a year by dividing the sum of our total asset balanc
Slide 6: Exceptionally Profitable Growth
2019Loan originations exceed $1.5 billionLaunched 8th Strategic Program service provider2020Record net income of $11.2 millionLoan originations of ~$2.6 billionYTD 3Q 2021Launched 10th and 11th Strategic ProgramsLoan originations in excess of ~$4.3 billion 2010Kent Landvatter becomes CEO; implements
Slide 7: Competitive Landscape
Competitive Landscape FinWise is Uniquely Positioned for Significant Growth and Profitability 7 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 Na
Slide 8: Key Investment Highlights
Key Investment Highlights As of November 12, 2021 8 Disciplined underwriting and compliance infrastructure designed to prudently facilitate a robust loan origination platform Highly-profitable fintech lending model with compelling growth rates Seasoned management team with considerable banking exper
Slide 9: Line of Business: What We Do
Line of Business What We Do Balance Sheet Strategy YTD 3Q ‘21 Gross Revenue Contribution Strategic Programs Originate consumer and commercial loans via third party platforms that use technology to streamline originationRetain loans for several business days after origination; sell loan receivables o
Slide 10: Retained Loan Portfolio Overview
Retained Loan Portfolio Overview Note: Financial data is as of or for the nine months ending September 30, 2021 10 YTD 3Q ‘21 Loan Originations Loan Portfolio as of September 30, 2021 $249.2M
Slide 11: Strategic Programs Overview
Significant loan volume generated by origination service providersStrategic Program service providers serve as sub-servicers and perform typical primary servicing dutiesEvery Strategic Program establishes a “reserve” deposit account with FinWiseExtensive onboarding process and periodic due diligence
Slide 12: Strategy Leverages Unique Position as Originating Bank
Strategy Leverages Unique Position as Originating Bank 12 Scalable Lending Partner Strategy Supports Risk Diversification and Profitability Strategic Service Provider Types Strategy Prime Consumer Programs Subprime Consumer Programs Commercial Programs Stringent partner selection criteria for risk d
Slide 13: Optimizing Returns through Ability to See Across Data Silos
Optimizing Returns through Ability to See Across Data Silos 13 2x Insights derived throughFinView™ enable optimizing exposure by asset class and origination platform x Time on Books (months) by Vintage Comparative Cumulative Charge-off Curves by Monthly Vintage
Slide 14: SBA 7(a) Lending Overview
SBA 7(a) Lending Overview Note: Annual period financial data represents the annual period ending December 31; 3Q ’21 financial data represents the nine month period as of or ending September 30, 2021 Gain on Sale of Loans and SBA Loan Servicing Fees 3Q ‘21 SBA 7(a) Lending Balance Sheet Overview Rev
Slide 15: Residential and Commercial Real Estate Lending Overview
Residential and Commercial Real Estate Lending Overview 15 Products Overview Consumer and commercial lending and deposit takingWell-disciplined credit underwritingConstruction lending with focus on single-family rental Strategic Benefits Historically stable and strong profitabilityHighly efficient u
Slide 16: Point of Sale Lending Program Overview
Point of Sale Lending Program Overview 16 Installment Loans Offer Significant Growth Opportunities Product Merchant Details Tech-Focus Growth Opportunities 50+ merchants across 16 states (and growing)Home improvement, spa, musical instruments and other POS lending market is significant in size, pres
Slide 17: Historical track record of strong asset quality
Historical track record of strong asset quality Allowance for Loan Losses / Total Loans NPAs & TDRs / Assets Net Charge-Offs By Line of Business Recorded a $5.2 million provision for loan losses in the first two quarters of 2020 primarily for potential COVID-19-related lossesZero provision taken in
Slide 18: Significant Earnings Growth
66.7% CAGR1 Significant Earnings Growth Represents 2-year CAGR for the periods between December 31, 2018 and December 31, 2020Note: “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
Slide 19: Significant Balance Sheet Growth
Significant Balance Sheet Growth Represents 3-year CAGR for the periods between December 31, 2017 and December 31, 2020Note: Annual period financial data represents the annual period ending December 31; 3Q ’21 financial data represents the nine month period as of or ending September 30, 2021 Total D
Slide 20: Growing Deposit Base
$164.5M Growing Deposit Base Note: Annual period financial data represents the annual period ending December 31; 3Q ’21 financial data represents the nine month period as of September 30, 2021 20 Core Deposit Strategy Commentary Total Deposits Breakdown ($M) Branch DepositsComplementary source of fu
Slide 21: Top-Tier Profitability Performance
Top-Tier Profitability Performance Note: “Efficiency ratio” is defined as total noninterest expense divided by the sum of net interest income and noninterest income. We believe this measure is important as an indicator of productivity because it shows the amount of revenue generated for each dollar
Slide 22: Significantly Well-Capitalized
Significantly Well-Capitalized Note: Annual period financial data represents the annual period ending December 31; 3Q ’21 financial data represents the nine month period as of September 30, 2021; FinWise Bank has elected to opt into the Community Bank Leverage Ratio framework starting in 2020 22 Bot
Slide 23: Capital Growth Strategy
Capital Growth Strategy 23 Funding Would Enable Regulatory Capital and Competitive Strength to Fuel Strategic Growth Primary Objectives Business Strategy Examples Growth Capital Supports continued growth and potential acquisitions Competitive StrengthEnables larger balance sheet to attract new partn
Slide 24: Key Investment Highlights
Key Investment Highlights As of November 12, 2021 24 Disciplined underwriting and compliance infrastructure designed to prudently facilitate a robust loan origination platform Highly-profitable fintech lending model with compelling growth rates Seasoned management team with considerable banking expe
Slide 25: FinWise
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Slide 26: Historical Consolidated Financial Statements
Historical Consolidated Financial Statements 26 Balance Sheet Income Statement
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 27 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 s
Slide 28: Significant Success with PPP Program
Significant Success with PPP Program Represents PPP financial metrics since Program inception as of September 30, 2021 Paycheck Protection Program Overview¹ For full year 2020, originated 700 PPP loans for a total principal amount of $126.6 million (no additional PPP loans originated for the nine mo
Slide 29: FinWise has Built a Highly Regarded Platform
FinWise has Built a Highly Regarded Platform 29 2019#41 best-performing under $3B 2020#2 best-performing under $3B Selected Rankings 2020#6 Largest Lender in NY 2020#8 Largest Lender in NJ 2018#12 best-performing under $3B 2017#3 best-performing under $1B 2019#9 Largest Lender in NY
Slide 30: FinView Analytics Platform: Buildout Drives Continued Scale
FinView™ Analytics Platform: Buildout Drives Continued Scale Near-term strategic priority; timing of product development dependent on a number of factors, including timing for new hires 30 2017: Began using API to connect with Strategic Program service providers 2018: FinView™ used to analyze retent
Slide 31: Board of Directors
Board of Directors As of November 12, 2021 31 Name Title Current / Prior Experience Russell F. Healey, Jr. Chairman of the Board CFO and COO of Feature Films for FamiliesSole owner of the Healey Company Howard I. Reynolds Vice Chairman of the Board Member of Board since inceptionFounding investor of