Slide 1: Investor Presentation August 2022
INVESTOR PRESENTATION AUGUST 2022
Slide 2: Disclaimer: Safe Harbor Statement
Disclaimer 2 "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
Disclaimer 3 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 4 Over 120 Years of Combined Banking Experience Michael O’Brien CCO / CRO / EVP Javvis Jacobson CFO / EVP Mr. Jacobson joined the Bank in March 2015 as the Executive Vice President and Chief Financial Officer. Mr. Jacobson has over 20 years of financial services experience, including
Slide 5: Key Investment Highlights
Key Investment Highlights 5 Disciplined underwriting and compliance infrastructure Highly-profitable fintech lending model with compelling growth rates Proprietary FinView™ Analytics Platform developed to enhance the gathering and interpretation of customer performance data Diverse, scalable revenue
Slide 6: Exceptionally Profitable Growth
Exceptionally Profitable Growth 6 Total assets as of December 31, 2020, December 31, 2021, and June 30, 2022, include approximately $107.1 million, $1.1 million, and $0.7 million in PPP loans, respectively Note: Annual period financial data represents the annual period ending December 31; we calcula
Slide 7: Diverse Business Lines and Revenue Streams
Line of Business 2Q ‘22 Gross Revenue Contribution Balance Sheet Strategy Strategic Programs 77.2% Strategic Program must have a reserve deposit account Mostly originate to sell Selective increase in HFI is part of long-term strategy SBA 7(a) Lending 20.5% Sell guaranteed portion at a premium Expand
Slide 8: Total Loan Portfolio Breakdown
Total Loan Portfolio Breakdown as of June 30, 2022 Loans guaranteed by the SBA include $0.7 million in PPP loans as of June 30, 2022 8 $232.1M Guaranteed by the SBA and Strategic Program HFS 33.7% Rates Above 36% Rates Below 36%
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. Year-to-date financial data is as of or for the six-mon
Slide 10: Profitability Metrics Compare Favorably to All US Banks
Profitability Metrics Compare Favorably to All US Banks 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 gener
Slide 11: Uniquely Positioned for Significant Growth and Profitability: Competitive Landscape
Uniquely Positioned for Significant Growth and Profitability Competitive Landscape 11 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 L
Slide 12: Retained Loan Portfolio Overview
Retained Loan Portfolio Overview Note: 2Q ‘22 financial data is as of or for the three-month period ending June 30, 2022. Loans Guaranteed by the SBA include $0.7 million of PPP loans as of June 30, 2022. 12 2Q ‘22 Loan Originations Loan Portfolio as of June 30, 2022 $232.1M
Slide 13: Strategic Programs - Unique and Differentiated Business Model
Loan volume generated by origination service providers Strategic Program service providers serve as sub-servicers and perform typical primary servicing duties Each Strategic Program establishes a “reserve” deposit account with FinWise Extensive onboarding process and ongoing due diligence to confirm
Slide 14: Strategy Leverages Unique Position as Originating Bank
Strategy Leverages Unique Position as Originating Bank 14 Scalable Lending Partner Strategy Supports Risk Diversification and Profitability Diverse Strategic Service Providers Informs Strategy Prime Consumer Programs Subprime Consumer Programs Commercial Programs Future Deposit Programs DEVELOP thro
Slide 15: Vintage Data Informs Our Retention Decisions
15 2x x Time on Books (months) by Vintage Data Informs Our Retention Decisions Case Study – Cumulative charge-off curve by programs
Slide 16: SBA 7(a) Lending Overview
SBA 7(a) Lending Overview Note: Q2 ‘21 financial data is as of or for the three-month period ending June 30, 2021; Q1 ‘22 financial data is as of or for the three-month period ending March 31, 2022; Q2 ‘22 financial data is as of or for the three-month period ending June 30, 2022 Gain on Sale of Loa
Slide 17: Residential and Commercial Real Estate Lending Overview
Residential and Commercial Real Estate Lending Overview 17 Products Overview Consumer and commercial lending and deposit taking Construction lending with focus on single-family rental Strategic Benefits Significant source of deposits Historically stable and strong profitability Branch-based Consumer
Slide 18: Point of Sale Lending Program Overview
Point of Sale Lending Program Overview 18 Installment Loans Offer 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, presenting mate
Slide 19: Historical track record of strong asset quality
Historical track record of strong asset quality Credit risk managed through combination of policy, data and pricing Disciplined underwriting has delivered historical track record of strong asset quality Allowance for Loan Losses / Total Loans was 4.6% as of June 30, 2022 Total Loans of $232.1M inclu
Slide 20: Significant Earnings
Significant Earnings 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 book value per share. We had n
Slide 21: Significant Balance Sheet Growth
Significant Balance Sheet Growth Note: Q2 ‘21 financial data is as of or for the three-month period ending June 30, 2021; Q1 ‘22 financial data is as of or for the three-month period ending March 31, 2022; Q2 ‘22 financial data is as of or for the three-month period ending June 30, 2022 Total Deposi
Slide 22: Deposit Base
Deposit Base 22 Core Deposit Strategy Commentary Branch Deposits Significant source of deposits Strategic Program Deposits Reserve Accounts – historically highly correlated to origination volume Operating Accounts SBA 7(a) Deposit Program and Other Piloting a new deposit product targeting SBA 7(a) c
Slide 23: Significantly Well-Capitalized
Significantly Well-Capitalized Note: Q2 ‘21 financial data is as of or for the three-month period ending June 30, 2021; Q1 ‘22 financial data is as of or for the three-month period ending March 31, 2022; Q2 ‘22 financial data is as of or for the three-month period ending June 30, 2022; FinWise Bank
Slide 24: Highly Regarded Platform
Highly Regarded Platform 24 Selected Rankings 2021 #1 best-performing between $300M - $1B 2021 #2 best-performing under $2B
Slide 25: Key Investment Highlights
Key Investment Highlights 25 Disciplined underwriting and compliance infrastructure Highly-profitable fintech lending model with compelling growth rates Proprietary FinView™ Analytics Platform developed to enhance the gathering and interpretation of customer performance data Diverse, scalable revenu
Slide 26: FinWise Bancorp
(J FINWISE BANCORP.
Slide 27: Non-GAAP to GAAP Reconciliation
Non-GAAP to 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: 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 28 2017: Began using API to connect with Strategic Program service providers 2018: FinView™ used to analyze retent