April 2025 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 current views of FinWise Bancorp ("FinWise," "we," "us," or the "Company") with respect to, among other things, future events and its financial performance. These statements are often, but not always, made ...

MURRAY, Utah, May 27, 2025 (GLOBE NEWSWIRE) -- FinWise Bancorp (NASDAQ: FINW) ("FinWise" or the "Company"), parent company of FinWise Bank (the "Bank"), today announced that it was added as a member of the US small-cap Russell 2000 Index, effective after the US market opens on June 30, 2025 as part of the 2025 Russell indexes reconstitution. Membership in the Russell 2000 Index, which remains in place for one year, is based on membership in the broad-market Russell 3000 Index. The stock also was automatical ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________________________ FORM 10-Q __________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________to ______. Commission File Num ...

Financial Performance - FinWise Bancorp reported revenue of $22.09 million for the quarter ended March 2025, marking a year-over-year increase of 13.5% [1] - The earnings per share (EPS) for the same period was $0.23, compared to $0.25 a year ago, indicating a decline [1] - The reported revenue was a surprise of -2.21% compared to the Zacks Consensus Estimate of $22.59 million [1] - The EPS surprise was -8.00% against the consensus estimate of $0.25 [1] Key Metrics - The efficiency ratio was reported at 64.8%, slightly above the two-analyst average estimate of 64.3% [4] - The net interest margin was 8.3%, lower than the average estimate of 9.8% based on two analysts [4] - Total interest-earning assets amounted to $700.50 million, exceeding the average estimate of $656.54 million [4] - Non-performing loans were reported at $29.88 million, significantly lower than the average estimate of $46.24 million [4] - The net charge-offs to average loans ratio was 1.9%, better than the average estimate of 2.6% [4] - Total non-interest income was $7.81 million, surpassing the average estimate of $6.57 million [4] - Net interest income was reported at $14.28 million, below the average estimate of $15.98 million [4] Stock Performance - Shares of FinWise Bancorp have returned -9.4% over the past month, compared to a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential outperformance against the broader market in the near term [3]

Company Performance - FinWise Bancorp reported quarterly earnings of $0.23 per share, missing the Zacks Consensus Estimate of $0.25 per share, and down from $0.25 per share a year ago, representing an earnings surprise of -8% [1] - The company posted revenues of $22.09 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 2.21%, compared to year-ago revenues of $19.47 million [2] - Over the last four quarters, FinWise Bancorp has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.23 on revenues of $23.88 million, and for the current fiscal year, it is $1.12 on revenues of $101.19 million [7] - The estimate revisions trend for FinWise Bancorp is currently favorable, leading to a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [3] Industry Context - The Banks - Southwest industry, to which FinWise Bancorp belongs, is currently in the top 5% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

April 2025 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 current views of FinWise Bancorp ("FinWise," "we," "us," or the "Company") with respect to, among other things, future events and its financial performance. These statements are often, but not always, made ...

FinWise Bancorp (FINW) Q1 2025 Earnings Call April 30, 2025 05:30 PM ET Company Participants None - ExecutiveKent Landvatter - CEO & ChairmanJim Noone - CEO & PresidentAndrew Terrell - Managing DirectorRobert Wahlman - CFOBrett Rabatin - Director of ResearchJoseph Yanchunis - Senior Equity Research Associate Conference Call Participants Andrew Liesch - Analyst Operator Greetings. Welcome to FinWise Bancorp's First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a l ...

FinWise Bancorp (FINW) Q1 2025 Earnings Call April 30, 2025 05:30 PM ET Company Participants None - ExecutiveKent Landvatter - CEO & ChairmanJim Noone - CEO & PresidentAndrew Terrell - Managing DirectorRobert Wahlman - CFOBrett Rabatin - Director of ResearchJoseph Yanchunis - Senior Equity Research Associate Conference Call Participants Andrew Liesch - Analyst Operator Greetings. Welcome to FinWise Bancorp's First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a l ...

Financial Data and Key Metrics Changes - The company originated approximately $1.3 billion in loans during the first quarter, with a tangible book value per common share increasing to $13.42 from $13.15 in the prior quarter [3][4] - Net income for the first quarter was $3.2 million, or $0.23 per diluted common share, with net interest income declining to $14.3 million from $15.5 million in the prior quarter [10][11] - The net interest margin (NIM) decreased to 8.27% from 10% in the prior quarter, primarily due to a change in the mix of loan originations and lower rates on variable rate loans [11][12] Business Line Data and Key Metrics Changes - The largest student lending program had strong originations but is expected to decelerate in the second quarter due to school calendars [6] - SBA seven loan originations decreased slightly quarter over quarter, driven by a lower average loan size, while equipment leasing and owner-occupied commercial real estate lines showed solid growth [7][8] - The provision for credit losses was $3.3 million in Q1, down from $3.9 million in the prior quarter, with non-performing asset (NPA) balances reduced to $29.9 million from $36.5 million [9] Market Data and Key Metrics Changes - Average loan balances increased to $565 million from $522 million in the prior quarter, with average interest-bearing deposits rising to $430 million from $355 million [10][11] - The company expects gradual growth driven by existing programs and new partnerships, with loan originations tracking at a quarterly rate of $1.2 billion in early April [5][6] Company Strategy and Development Direction - The company announced a new strategic program agreement with Fintech partner BACT to provide business installment loans to small and medium-sized businesses [4] - The focus remains on migrating the loan portfolio to a lower risk profile while maintaining profitability and increasing tangible book value [3][5] - The company anticipates that the credit enhanced balance sheet program will significantly contribute to earnings in 2025, particularly in the second half of the year [5][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term outlook for the business, despite a more uncertain macro environment [5] - The company is closely monitoring economic conditions but remains comfortable with the guidance for gradual growth from new partners throughout 2025 [36] - Concerns about potential macro risks, such as a slowdown in consumer spending, were acknowledged, but no immediate issues were reported [36] Other Important Information - The efficiency ratio remained relatively flat at 64.8%, with expectations for future decreases as revenue from new programs materializes [14] - The effective tax rate for the first quarter was 28.1%, with an expected rate of approximately 27.5% for 2025 [15] Q&A Session Summary Question: What is the current expense run rate and expectations for future expenses? - Management indicated that the efficiency ratio is around 64.8%, with expenses expected to remain flat and increase as revenues grow [19][21] Question: What is the outlook for net interest income (NII) growth given margin pressures? - Management expects NII growth to come from a return to normal origination levels and growth in traditional banking products, despite a continued decline in NIM [22][24] Question: What are the current credit enhanced loan balances and the timeline for growth? - The credit enhanced portfolio balance was slightly under $2 million at the end of the quarter, with expectations to reach $50 million to $100 million by year-end with existing partners [31][30] Question: How does the company view the health of its strategic partners in the current market? - Management reported no concerns about strategic partners, with origination levels remaining healthy and a gradual pickup expected from newer partners [36] Question: What is the yield on owner-occupied commercial real estate loans? - The gross yield on owner-occupied commercial real estate loans is expected to be around prime minus 100 basis points [63]

Financial Performance - Net income for the first quarter of 2025 was $3.2 million, an increase from $2.8 million in the prior quarter but a slight decrease from $3.3 million in the same period last year[18]. - Diluted earnings per share (EPS) were $0.23 for the first quarter of 2025, compared to $0.20 in the prior quarter and $0.25 in the same period last year[5]. - Net income for the three months ended March 31, 2025, was $3,189 thousand, compared to $2,794 thousand for the previous quarter, reflecting an increase of 14.1%[45]. - Earnings per share (basic) for the three months ended March 31, 2025, was $0.24, up from $0.21 in the previous quarter, an increase of 14.3%[45]. Loan and Asset Management - Loan originations totaled $1.3 billion for the first quarter of 2025, consistent with the prior quarter and up from $1.1 billion in the same period last year[5]. - Total gross loans held-for-investment (HFI) as of March 31, 2025, increased by $27.0 million (5.8%) from December 31, 2024, and by $101.3 million (25.9%) from March 31, 2024, driven by growth in commercial real estate - owner occupied, commercial leases, and residential real estate loan portfolios[21]. - Loans held-for-investment reached $485.78 billion, generating $12.89 billion in interest income, resulting in a yield of 10.76%[50]. Income and Expenses - Net interest income was $14.3 million for the first quarter of 2025, down from $15.5 million in the prior quarter but up from $14.0 million in the same period last year[8]. - Total interest income decreased to $18,536 thousand for the three months ended March 31, 2025, down from $19,362 thousand in the previous quarter, a decline of 4.3%[45]. - Non-interest expense increased to $14,318 thousand for the three months ended March 31, 2025, compared to $13,563 thousand in the previous quarter, an increase of 5.6%[45]. - Total non-interest income was $7.81 billion, up from $5.60 billion in the previous quarter, reflecting a significant increase in revenue[49]. Asset and Equity Growth - Total assets increased to $804.1 million as of March 31, 2025, up from $746.0 million at the end of the prior quarter and $610.8 million a year ago[19]. - Total shareholders' equity as of March 31, 2025, rose to $177.4 million, an increase of $3.6 million (2.1%) from December 31, 2024, and an increase of $14.9 million (9.2%) from March 31, 2024, mainly due to net income and stock-based compensation[24]. - The company's total liabilities increased to $626,768 thousand as of March 31, 2025, from $572,256 thousand at December 31, 2024, an increase of 9.5%[43]. Credit Quality and Losses - Nonperforming loan balances decreased to $29.9 million as of March 31, 2025, down from $36.5 million in the prior quarter[5]. - The provision for credit losses was $3.3 million for the first quarter of 2025, down from $3.9 million in the prior quarter[11]. - The allowance for credit losses increased to $14.2 million as of March 31, 2025, from $13.2 million as of December 31, 2024, and $12.6 million as of March 31, 2024[30]. - Nonperforming loans as of March 31, 2025, totaled $29.9 million, or 6.1% of total loans HFI, a decrease from $36.5 million (7.8%) as of December 31, 2024, and an increase from $26.0 million (6.6%) as of March 31, 2024[27]. Capital Ratios - The leverage ratio as of March 31, 2025, was 18.8%, down from 20.6% as of December 31, 2024, and March 31, 2024, but still significantly above the well-capitalized requirement of 9.0%[25]. - The allowance for credit losses to total loans HFI was 2.9% as of March 31, 2025, compared to 2.8% as of December 31, 2024, and 3.2% as of March 31, 2024[30]. Strategic Initiatives - The Company is expanding its business model by incorporating Payments (MoneyRailsTM) and BIN Sponsorship offerings, alongside its existing Strategic Program Lending business[34]. - The company anticipates continued growth in interest-earning assets and improvements in net interest margin in the upcoming quarters[49].