Finwise Bancorp · NASDAQ:FINW
Finwise Bancorp — Investor Presentation (January 2024)
24 slides from Finwise Bancorp's investor presentation, Jan 30, 2024
Slide 1: Powering the Fintech Banking Evolution - Investor Presentation
BANCORP owering the Fintech Banking Evolution Investor Presentation January 2024
Slide 2: Disclaimers
ea 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 cu
Slide 3: Company Highlights
=== Company Highlights Differentiated Banking Model with Fintech Focus Fintech Brands We Supp Key Existing Businesses: o Lending. SBA 7(a), Real Estate, Leasing lending programs provide optionality for disciplined balance sheet growth oO Marketplace Lending. Lending-as-a-Service through scalable API
Slide 4: Our Culture - Compliance at the Core
“=== Our Culture - Compliance at the Core Consistent Investment in Personnel & Infrastructure Strengthened Regulatory Oversight Support to Service Providers (Fintechs) Full Time Employees (FTEs) in Respective Functions 4021 4022 4023 mIT mCompliance mRisk Management mBSA Note: FTEs shown as of the e
Slide 5: Current Business Model
== Current Business Model Differentiated and Proven Strategy Offers Solid Foundation for Future Growth Residential & Owner Occupied CRE (Branch-based Lending) 5.6% Marketplace Lending (Lending-as-a-Service) SBA 7(a) Equipment Financing 4Q23 Gross Revenue Contribution 55.3% 23.8% 4.1% Balance Sheet S
Slide 6: Marketplace Lending - Program Diversification Has Improved
== Marketplace Lending - Program Diversification Has Improved Percentage of Originations from Top 3 Fintech Programs Note: Marketplace Lending concentration shown since 1022 to highlight longer-term pattern in recent years 6
Slide 7: Next Phase: Expansion Through Integrated BaaS Offering
«mmm Next Phase: Expansion Through Integrated BaaS Offering Expected to Enhance Ability to Scale and Drive Growth Current Business Model Marketplace Lending (Laas) Equipment Financing SBA 7(a) Resi & Owner Occupied CRE + Payments Hub and Bank Identification Number (BIN) Sponsorship are under develop
Slide 8: Sizable Addressable Market
== Sizable Addressable Market Fintechs & Non-Financials Expected to Seek Bank Partners that Can Provide Access to Financial Products Estimated U.S. Market for Platforms and Enablers: (Total Revenue Across Payments, Lending, Banking, Cards) 2021 2026 Source: Matt Harris, Blake Adams, Adam Davis, and
Slide 9: Differentiators of Planned BaaS Offerings
= Differentiators of Planned BaaS Offerings Payments Hub Bank Identification Number (BIN) Sponsorship * Ease of Use. Brings multiple payments types under one * Compliance-first Culture. Significant knowledge of compliance application. Ability to see all payments through a single source practices req
Slide 10: Potential Long-term Benefits from An Integrated BaaS Offering
==== Potential Long-term Benefits from An Integrated BaaS Offering Revenue Deposits Credit Quality Profitability Expands and diversifies Helps diversify deposit Increases percentage Use of outsourced potential sources composition and reduce of Prime loans solutions enhances of revenue cost of funds
Slide 11: Components of BaaS Enable Scaling and Regulatory Oversight
=== Components of BaaS Enable Scaling and Regulatory Oversight Our Technolog Credit Engine -Verify borrower inform -Validate loans to models and underwriting criteria, and originate Payments Hub -Rules-based money movement configurations . and restrictions Enterprise Data Warehouse Verification, val
Slide 12: Intensive Due-Diligence Process and Compliance Assessment
=a Intensive Due-Diligence Process and Compliance Assessment Representative Service Provider (Fintech) Onboarding FINWISE TEAM IDENTIFIES PROSPECT Service Provider is presented at next internal Third-Party Oversight Committee (TPOC) meeting for approval Risk-based due diligence process involving 3'!
Slide 13: Disciplined Expense Management While Investing for Growth
6.0, ess Disciplined Expense Management While Investing for Growth V Total Non-interest Expense ($M) $11.4 $10.2 $10.1 $4.0 $4.4 $3.7 Increase in Total Non-interest Expenses has been driven largely by business infrastructure spend, including headcount, to support growth and key strategic initiati $7
Slide 14: Selected Financial Information
\7 FINWISE BANCORP Selected Financial Information
Slide 15: Solid Originations and Balance Sheet Growth
=== Solid Originations and Balance Sheet Growth Total Loan Originations ($B) Total Assets ($M) can $1.1 Sta $586.2 $555.1 ; a a i; 4022 3Q23 4023 4022 3Q23 4023 Total Loans Outstanding ($M) Total Deposits ($M) $372.2 $404.8 $337.6 $386.8 o - i; - 4022 3Q23 4023 4022 3Q23 4023 15 Note: Amounts are as
Slide 16: Sustained Historical Profitability
=== Sustained Historical Profitability Tangible Shareholder Equity to Tangible Assets" Net Income ($M) Diluted Earnings Per Share (EPS) 35.0% $0.37 27.1% 26.5% T ; a J 4022 3023 4022 3023 4023 4022 3023 4023 Return on Average Assets (ROAA) Return on Average Equity (ROAE)? Tangible Book Value per Sha
Slide 17: Diversified Income Sources
== Diversified Income Sources Net Interest Income / Net Interest n terest Income $9.8M 14.27% 11.77% 10.61% $5.3M $6.0M $5.2M $1.8M $14.4M $14.4M $1.3M $12.6M S4.5M $3.9M $4.2M 4Q22 3023 4023 4022 3023 4023 MEE Net Interest Income —==Net Interest Margin m™ Strategic Program Fees ™ Other Non-interest
Slide 18: Well Capitalized Above Regulatory Requirements
=== Well Capitalized Above Regulatory Requirements Total FinWise Bancorp Shareholders’ Equity to Leverage Ratio — Bank Level* Total Assets 35.0% 27.1% 26.5% 25.1% 22.1% i; ; 4Q22 3Q23 4Q23 4Q22 4023 “The Bank's capital levels remain significantly above well-capitalized guidelines as of December 31,
Slide 19: Disciplined Underwriting Process
== Disciplined Underwriting Process * Credit risk 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 * Remain well-reserved
Slide 20: Diversified Loan Portfolio
saa Diversified Loan Portfolio SBA Guaranteed, 31.4% SBA mee §=6S419.7M ‘Commerical (Non RE), 9.7% Consumer 2.7% commercial RE, 5.4% Note: As of December 31, 2023 Strategic Programs (HFS), 11.3% Guaranteed by the SBA and Strategic Program HFS 42.7% 20
Slide 21: Consistent Tangible Book Value per Share Growth
=== Consistent Tangible Book Value per Share Growth YY Tangible Book Value Per Share (Non-GAAP) $12.04 $12.41 ; | 4Q22 3Q23 4023 a + See Appendix at end of presentation for full description of metric and Non-GAAP reconciliation. Amounts are as of the end of each respective period
Slide 22: Appendix
\7 FINWISE BANCORP Appendix
Slide 23: Non-GAAP Reconciliations
ema Non-GAAP Reconciliations @ (2) Tangible Shareholders’ Equity and Tangible Book Value Per Share As of, (S$ in thousands) December 31, 2022 September 30, 2023 December 31, 2023 Total Shareholders’ Equity $ 140,459 $ 150,402 $ 155,056 Goodwill S = _ Other intangibles - - - 155,056 ) Tangible book v
Slide 24: Glossary of Terms Used
«=== Glossary of Terms Used 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 ea
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