Finwise Bancorp · NASDAQ:FINW
Finwise Bancorp — Investor Presentation (April 2025)
28 slides from Finwise Bancorp's investor presentation, Apr 30, 2025
Slide 1: Fintech Banking and Payments Solutions Investor Presentation
(7 FINWISE BAN dR Fintech Banking and Payments Solutions Investor Presentation April 2025
Slide 2: Disclaimers: Safe Harbor Statement
2 Disclaimers "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 cur
Slide 3: FinWise Overview: Differentiated Business Model
FinWise Overview Differentiated Business Model • Banking and payments solutions provider to fintechs • Resilient and profitable model with compelling growth opportunities • Compliance oversight and risk management-first culture • Lower risk loan portfolio with disciplined underwriting and collateral
Slide 4: Our Culture - Strong Compliance and Risk Management
Our Culture - Strong Compliance and Risk Management 4 Consistent Investment in Personnel & Infrastructure Provides Regulatory Oversight Support to Fintechs Note: FTEs shown as of the end of each respective quarter; does not include FTEs in Governance and Operations. 72 (or 37%) of our 196 FTEs at th
Slide 5: Select Fintech Brands We Currently Support
5 Select Fintech Brands We Currently Support Note: Upstart, Elevate and Reach are not on MoneyRailsTM, but FinWise does handle Payment Processing for them. Growth Opportunity With Existing Fintechs And As New Programs Are Onboarded
Slide 6: Current Business Model
Equipment Leasing Programs Balance Sheet Strategy: • Originate for Investment • Originations through vendor finance, additional third-party originators, direct channels • Diversify balance sheet Fintech Banking & Payments Solutions (includes Strategic Program Lending) Balance Sheet Strategy: • Mostl
Slide 7: Strategic Program Lending - Program Diversification Has Improved
Strategic Program Lending (SPL) - Program Diversification Has Improved Note: Strategic Program Lending concentration shown since 1Q22 to highlight longer-term pattern in recent years 7
Slide 8: Growth Strategy: A Broader Banking & Payments Offering
Growth Strategy: A Broader Banking & Payments Offering 1SBA 7(a) includes Guaranteed and Unguaranteed loans; Guaranteed loans are guaranteed by U.S Small Business Administration. Note: "Fintech Banking & Payments Solutions" is used to describe our target market within the banking as a service ecosys
Slide 9: Key New Products Under One Platform
Key New Products Under One Platform 1 Credit approval by FinWise is required 9 A Differentiator of Our Fintech Banking & Payments Solutions Offering
Slide 10: MoneyRails Overview and Map of Services
MoneyRailsTM Overview and Map of Services 10 MoneyRailsTM is a Centralized, Secure Platform and Ledger that Facilitates Movement of Money • Highly secured platform built on ZeroTrust architecture, and based on an immutable ledger of transactions • The Ledger provides a strong foundation with control
Slide 11: Revenue Sources by Product: Interest Income and Fees
11 Interest Income • Monthly fee driven by originated loan volume • On loans held for a few days before sold and on extended held for sale loans • On loans held for investment • Incorporated in Strategic Program Lending (SPL) monthly fee • Contractual interest earned on loans maintained on our bal.
Slide 12: Potential Long-term Benefits from Our Offering
Potential Long-term Benefits from Our Fintech Banking and Payments Solutions Offering Revenue Expands and diversifies potential sources of revenue Deposits Helps diversify deposit composition and reduce cost of funds through relationship-banking Credit Quality Increases percentage of Prime loans Pro
Slide 13: Intensive Due-Diligence Process and Compliance Assessment
Intensive Due-Diligence Process and Compliance Assessment Representative Fintech Onboarding - a Thorough Selection Process 13
Slide 14: Components of Model Enable Scaling and Regulatory Oversight
Components of Model Enable Scaling and Regulatory Oversight Our Technology:Product: Enterprise Data Warehouse -Proprietary and rigorous regulatory process -FinWise controls the data internally Lending programs, including closed and open-ended consumer and commercial • Verify borrower information • V
Slide 15: Disciplined Underwriting Process Mitigates Risk
Disciplined Underwriting Process Mitigates Risk... • Credit risk is managed through combination of policy, data and pricing • Disciplined underwriting process and well collateralized portfolio has helped mitigate net charge-offs, even as credit quality normalized due to higher rate environment • Rem
Slide 16: Diversified and Lower Risk Loan Portfolio
...and Leads to a Diversified and Lower Risk Loan Portfolio Key Quarterly Trends: • Combined SBA Guaranteed and Strategic Program Loans (HFS) increased to a total of 44.0% of the portfolio as of 1Q25 vs 42.7% as of 1Q24. Both of these products carry lower credit risk Note: SBA Guaranteed loans are g
Slide 17: Deposit Composition
Deposit Composition 17 As of March 31, 2025; Total Period End Deposits: $606 Million Significant opportunity to reduce cost of funds by gradually diversifying deposit composition
Slide 18: Disciplined Expense Management While Investing for Growth
Disciplined Expense Management While Investing for Growth Longer-term increase in Total Non- interest Expense has been driven largely by business infrastructure spend, including headcount, to support organic growth and key strategic initiatives. 2025 Commentary: Expense growth to be correlated to re
Slide 19: TBV Growth Has Been a Win for Shareholders
TBV Growth Has Been a Win for Shareholders Tangible Book Value Per Share (Non-GAAP)1 19 1 See Appendix at end of presentation for full description of metric and Non-GAAP reconciliation. Amounts are as of the end of each respective period 2 Bank Peers defined as: Oregon Bancorp, Inc., Quaint Oak Banc
Slide 20: Industry Recognition as a Top-Performing Bank
Industry Recognition as a Top-Performing Bank 20 FinWise Bancorp ranked in top 3 on American Banker's annual list of Top-Performing Publicly Traded Banks with under $2 billion of assets (based on 3-year average ROAE ending 12/31/23) 2022 2023 2022 2023 20242024 Source: https://www.independentbanker.
Slide 21: Selected Financial Information
Selected Financial Information 21
Slide 22: Solid Originations and Significant Balance Sheet Growth
Solid Originations and Significant Balance Sheet Growth 22 1 HFI = Held for Investment. Note: Total Loan Originations are for the quarterly period. Other amounts are as of the end of each respective period
Slide 23: Growing TBVps and Sustained Historical Profitability
Growing TBVps and Sustained Historical Profitability 231See Appendix for more information and Non-GAAP reconciliation. Tangible Book Value per Share (Non-GAAP) as of the end of each respective period. 2ROAE is negatively affected by high capital levels. Profitability partly impacted by infrastructur
Slide 24: Diversified Income Sources
Diversified Income Sources 24 1 Other Non-interest Income includes all other non-interest income items, excluding Strategic Program Fees.
Slide 25: Well Capitalized Above Regulatory Requirements
Well Capitalized Above Regulatory Requirements 25 Note: data as of the end of each respective period. The Bank's capital levels remain significantly above the well-capitalized regulatory requirement of 9%, pursuant to the Community Bank Leverage Ratio framework adopted by the Bank in 2020.
Slide 26: Appendix
\7 FINWISE Appendix
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations 27 (1) Tangible shareholders’ equity: This measure is not a measure recognized under GAAP and is therefore considered to be a non-GAAP financial measure. Tangible shareholders’ equity is defined as total shareholders’ equity less goodwill and other intangible assets. The mos
Slide 28: Glossary of Terms Used
Glossary of Terms Used 28 ACH (The Automated Clearing House). Electronic funds-transfer system that facilitates payments in the U.S. and internationally. The ACH is run by Nacha. API (Application Programming Interface). Set of defined rules that enable different applications to communicate with each