Company Overview - FinWise is a banking and payments solutions provider to fintechs, emphasizing compliance and risk management[11] - The company has a resilient and profitable business model with compelling growth opportunities[11] - A significant portion of FinWise's workforce, 36% or 69 out of 194 FTEs, is dedicated to IT, Compliance, Risk Management, and BSA functions as of 3Q25[13] Strategic Program Lending (SPL) - Strategic Program Lending (SPL) contributed 48.1% of 3Q25 gross revenue[15] - As of September 30, 2025, Strategic Platform Loans on the balance sheet totaled $219.7 million, with 71.3% held-for-sale (HFS) and 28.7% held-for-investment (HFI)[15] - Strategic Program Fees generated $6.4 million, representing 35.7% of non-interest income in 3Q25[15] Loan Portfolio - As of 3Q25, 40% of the loan portfolio is SBA Guaranteed and Strategic Program HFS[11] - SBA Loans on the balance sheet amounted to $240.1 million as of September 30, 2025, with 55.1% guaranteed and 44.9% unguaranteed[15] - Combined SBA Guaranteed and Strategic Program Loans Held-for-Sale (HFS) increased to 39.9% of the portfolio as of 3Q25[50] Financial Performance - Total deposits reached $682.3 million as of September 30, 2025[51] - The company's efficiency ratio was 47.6% in 3Q25, or 59.7% on a core basis when adjusted for credit enhancement related accounting[79] - Tangible book value per share was $13.84 as of September 30, 2025[87]

Business Model & Strategy - FinWise operates a differentiated business model as a banking and payments solutions provider to fintechs, emphasizing compliance and risk management[9, 10] - The company's growth strategy focuses on a broader banking and payments offering, incorporating credit enhancement, payments (MoneyRails™), and BIN sponsorship to enhance revenue diversification[21, 22] - Strategic Program Lending (SPL) diversification has improved since 1Q22, highlighting a longer-term pattern in recent years[18, 20] Financial Performance & Portfolio - As of 1Q25, 44% of FinWise's loan portfolio consists of SBA Guaranteed and Strategic Program HFS loans, which carry lower credit risk[10, 43] - Strategic Platform Loans on the balance sheet amounted to $1387 million as of March 31, 2025, with 856% held for sale (HFS) and 144% held for investment (HFI)[16] - In 1Q25, gain on sale (net) and strategic program fees accounted for $51 million, representing 657% of non-interest income[16] Risk Management & Compliance - FinWise has a strong compliance and risk management culture, with 37% (72 out of 196) of its FTEs dedicated to IT, Compliance, Risk Management, and BSA functions as of 1Q25[11, 13] - The company maintains a well-reserved position with an ACL/Total Gross Loans HFI of 29% as of the end of 1Q25, reflecting a lower-risk portfolio[40] Capital & Efficiency - FinWise remains well-capitalized, significantly above the regulatory requirement of 9% under the Community Bank Leverage Ratio framework[10, 83] - The efficiency ratio for 1Q25 was 648%, compared to 610% in 1Q24 and 642% in 4Q24[50, 86]