Finwise Bancorp · NASDAQ:FINW
Finwise Bancorp — Investor Presentation (August 2023)
25 slides from Finwise Bancorp's investor presentation, Aug 4, 2023
Slide 1: Investor Presentation August 2023
1 Investor Presentation August 2023
Slide 2: Disclaimer: Safe Harbor Statement
2 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 curr
Slide 3: Disclaimer: Market and industry data
3 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
4 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, incl
Slide 5: Key Investment Highlights
5 Key Investment Highlights Highly-profitable fintech lending model with compelling growth opportunities Deep experience and continued compliance and IT investment beginning in 2016 Unique bank that closely integrates with fintech lending platforms Diverse revenue streams Disciplined underwriting an
Slide 6: Resilient Business Model Through Prior Cycles
6 Resilient Business Model Through Prior Cycles As of or for the six months ended June 30, 2023 Financial Highlights1 Total Assets: Net Income: ROAE: ROAA: $495.6M $8.5M 12.0% 3.9% 1) Total assets as of December 31, 2020, December 31, 2021, December 31, 2022, and June 30, 2023, include approximately
Slide 7: Diverse Business Lines and Revenue Streams
7 Diverse Business Lines and Revenue Streams Note: Financial data is as of or for the quarter ending June 30, 2023. “Other”, “Change in Fair Value on investment in BFG”, and “SBA PPP” revenue not included in Revenue Contribution Breakdown. Line of Business 2Q ‘23 Gross Revenue Contribution Balance S
Slide 8: Total Loan Portfolio Breakdown
8 SBA Unguaranteed 31.1% SBA Guaranteed 25.7% Strategic Program (HFS) 12.7% Strategic Program (HFI) 6.2% Residential RE 9.1% Commercial RE 5.6% Consumer 2.1% Commercial (Non RE) 7.5% $333.0M Total Loan Portfolio Breakdown as of June 30, 2023 Loans guaranteed by the SBA include $0.5 million in PPP lo
Slide 9: Top-Tier Profitability
9 Top-Tier Profitability Note: According to the FDIC website, the data for all US Banks represents 5,177, 5,001, 4,839, and 4,706 banks for 2019, 2020, 2021, and 2022, respectively. Annual period financial data represents the annual period ending December 31. Year-to-date financial data is as of or
Slide 10: Profitability Metrics Compare Favorably to All US Banks
10 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, 4,839, and 4,706 banks for 2019, 2020, 2021, and 2022, respectively. Annual period financial da
Slide 11: Significantly Well-Capitalized
11 Significantly Well-Capitalized Note: Q2 '22 financial data is as of June 30, 2022; Q1 '23 financial data is as of March 31, 2023; Q2 '23 financial data is as of June 30, 2023; FinWise Bank elected to opt into the Community Bank Leverage Ratio framework starting in 2020. FinWise Bancorp and FinWis
Slide 12: Historical Track Record of Strong Asset Quality
12 Historical Track Record of Strong Asset Quality Note: Q2 '22 financial data is as of or for the three-month period ending June 30, 2022; Q1 '23 financial data is as of or for the three-month period ending March 31, 2023; Q2 '23 financial data is as of or for the three- month period ending June 30
Slide 13: Retained Loan Portfolio Overview
13 Retained Loan Portfolio Overview Note: Q2 '23 financial data is as of or for the three-month period ending June 30, 2023. Loans Guaranteed by the SBA include $0.5 million of PPP loans as of June 30, 2023. Q2 '23 Loan Originations Loan Portfolio as of June 30, 2023 SBA Unguaranteed 31.1% SBA Guara
Slide 14: Strategic Programs – Unique and Differentiated Business Model
14 $6,221 $3,862 $4,39773.8% 85.3% 83.1% Gain on Sale of Loans, net and Strategic Program Fees ($000s) % of Noninterest Income Q2 '22 Q1 '23 Q2 '23 32.9% 67.1% Retained (HFI) Held-For-Sale (HFS) Strategic Programs – Unique and Differentiated Business Model sets FinWise Apart Note: Q2 '22 financial d
Slide 15: Strategy Leverages Unique Position as Originating Bank
15 Strategy Leverages Unique Position as Originating Bank Informs StrategyDiverse Strategic Service Providers Scalable Lending Partner Strategy Supports Risk Diversification and Profitability Prime Consumer Programs Subprime Consumer Programs Commercial Programs Deposit Programs DEVELOP through othe
Slide 16: Case Study – Cumulative Charge-Off Curve by Programs
16 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
17 SBA 7(a) Lending Overview Note: Q2 '22 financial data is as of or for the three-month period ending June 30, 2022; Q1 '23 financial data is as of or for the three-month period ending March 31, 2023; Q2 '23 financial data is as of or for the three- month period ending June 30, 2023 • Experienced m
Slide 18: Residential and Commercial Real Estate Lending Overview
18 Residential and Commercial Real Estate Lending Overview Branch-based Consumer and Commercial Community Bank Offers Strategic Benefits to Broader FinWise Business Lines Branch MapBusiness Line Differentiators Focus on building a core deposit base All loans held on balance sheet High-touch, relatio
Slide 19: Consistent Tangible Book Value per share Growth
19 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
Slide 20: Significant Balance Sheet Growth
20 Significant Balance Sheet Growth Note: Q2 '22 financial data is as of or for the three-month period ending June 30, 2022; Q1 '23 financial data is as of or for the three-month period ending March 31, 2023; Q2 '23 financial data is as of or for the three- month period ending June 30, 2023 Total Lo
Slide 21: Deposit Base
21 Deposit Base • Branch Deposits • Significant source of deposits • Strategic Program Deposits • Reserve Accounts – historically highly correlated to held for sale loan balances and origination volume • Operating Accounts • Health Savings Account Deposits • Core HSA deposits working with Lively, In
Slide 22: Appendix
22 Appendix
Slide 23: Non-GAAP to GAAP Reconciliation
23 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 s
Slide 24: Data and API capability timeline
24 • 2017: Began using API to connect with Strategic Program service providers • 2018: Used data to analyze retention of selected Strategic Program loans and Partner Performance • 2020: Created new enterprise data warehouse to more efficiently aggregate and normalize origination and servicing data 2
Slide 25: Equipment Finance Program Overview
25 Equipment Finance Program Overview Product Strategic Goals • Support small business growth via acquisition of essential business equipment • Profitably grow balance sheet Referral Partners • Equipment manufacturers, dealers, independent finance companies and institutional lenders • Business criti
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