FinWise Bancorp (NASDAQ: FINW) (“FinWise” or the “Company”), parent
company of FinWise Bank (the “Bank”), today announced results for
the quarter and year ended December 31, 2022.
Fourth Quarter 2022
Highlights
- Loan originations were $1.2
billion, compared to $1.5 billion for the quarter ended September
30, 2022, and $2.3 billion for the fourth quarter of the prior
year
- Net interest income was $12.6
million for the quarter ended December 31, 2022, compared to $12.5
million for the quarter ended September 30, 2022, and $15.3 million
for the fourth quarter of the prior year
- Net Income was $6.5 million,
compared to $3.7 million for the quarter ended September 30, 2022,
and $10.1 million for the fourth quarter of the prior year
- Diluted earnings per share (“EPS”)
were $0.49 for the quarter, compared to $0.27 for the quarter ended
September 30, 2022, and $0.90 for the quarter ended December 31,
2021
- Efficiency ratio was 45.6%,
compared to 42.3% for the quarter ended September 30, 2022, and
34.3% for the fourth quarter of the prior year
- Maintained strong returns with
annualized return on average equity (ROAE) of 19.1%, compared to
11.0% in the quarter ended September 30, 2022, and 43.8% in the
fourth quarter of the prior year
- Asset quality remained solid with a
non-performing loans to total loans ratio of 0.1%
“The FinWise team executed well in substantially
all facets of the business during 2022, culminating the year with
solid results in the fourth quarter, an outstanding accomplishment
given more challenging economic conditions throughout the year,”
said Kent Landvatter, Chief Executive Officer and President of
FinWise. “This performance is further validation of our
differentiated and diverse business model coupled with our
steadfast focus on working with our strategic relationships and
serving our clients. As we progress into 2023, we will continue to
build on our strengths and plan to reinvest in the company so that
we remain well positioned to maximize shareholder value by
continuing to generate sustainable and profitable long-term
growth.”
Selected Financial Data
|
For the Three Months Ended |
For the Years Ended |
|
($s in thousands, except per
share amounts, annualized ratios) |
12/31/2022 |
|
|
9/30/2022 |
|
|
12/31/2021 |
|
|
12/31/2022 |
|
|
12/31/2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
6,545 |
|
|
$ |
3,654 |
|
|
$ |
10,111 |
|
|
$ |
25,115 |
|
|
$ |
31,583 |
|
Diluted EPS |
$ |
0.49 |
|
|
$ |
0.27 |
|
|
$ |
0.90 |
|
|
$ |
1.87 |
|
|
$ |
3.27 |
|
Return on average assets |
|
6.6 |
% |
|
|
3.9 |
% |
|
|
11.3 |
% |
|
|
6.4 |
% |
|
|
9.1 |
% |
Return on average equity |
|
19.1 |
% |
|
|
11.0 |
% |
|
|
43.8 |
% |
|
|
19.6 |
% |
|
|
39.2 |
% |
Yield on loans |
|
19.04 |
% |
|
|
18.94 |
% |
|
|
21.62 |
% |
|
|
18.52 |
% |
|
|
19.01 |
% |
Cost of deposits |
|
1.98 |
% |
|
|
1.16 |
% |
|
|
0.75 |
% |
|
|
1.17 |
% |
|
|
1.05 |
% |
Net interest margin |
|
14.27 |
% |
|
|
14.93 |
% |
|
|
16.62 |
% |
|
|
14.04 |
% |
|
|
15.10 |
% |
Efficiency Ratio(1) |
|
45.6 |
% |
|
|
42.3 |
% |
|
|
34.3 |
% |
|
|
43.9 |
% |
|
|
37.0 |
% |
Tangible book value per
share(2) |
$ |
10.95 |
|
|
$ |
10.44 |
|
|
$ |
9.04 |
|
|
$ |
10.95 |
|
|
$ |
9.04 |
|
Tangible shareholders’ equity to
tangible assets(2) |
|
34.9 |
% |
|
|
34.8 |
% |
|
|
30.4 |
% |
|
|
34.9 |
% |
|
|
30.4 |
% |
Leverage Ratio (Bank under
CBLR) |
|
25.1 |
% |
|
|
24.9 |
% |
|
|
17.7 |
% |
|
|
25.1 |
% |
|
|
17.7 |
% |
(1) This measure is not a measure recognized
under United States generally accepted accounting principles, or
GAAP, and is therefore considered to be a non-GAAP financial
measure. See “Reconciliation of Non-GAAP to GAAP Financial
Measures” for a reconciliation of this measure to its most
comparable GAAP measure. The 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
generated for each dollar spent.
(2) This measure is not a measure recognized
under GAAP and is therefore considered to be a non-GAAP financial
measure. See “Reconciliation of Non-GAAP to GAAP Financial
Measures” for a reconciliation of this measure to its most
comparable GAAP measure. Tangible shareholders’ equity is defined
as total shareholders’ equity less goodwill and other intangible
assets. The most directly comparable GAAP financial measure is
total shareholder’s equity. We had no goodwill or other intangible
assets as of any of the dates indicated. We have not considered
loan servicing rights or loan trailing fee asset as intangible
assets for purposes of this calculation. As a result, tangible
shareholders’ equity is the same as total shareholders’ equity as
of each of the dates indicated.
Net Income
Net income was $6.5 million for the fourth
quarter of 2022, compared to $3.7 million for the third quarter of
2022, and $10.1 million for the fourth quarter of 2021. The
increase from the previous quarter was primarily due to higher gain
on sale, lower provision for income taxes and lower provision for
loan losses as our credit quality remained solid, partially offset
by an increase in non-interest expense and lower strategic program
fees. Compared to the prior year period, the decline was primarily
driven by a decrease in net interest income and strategic program
fees, and an increase in non-interest expenses, partially offset by
higher gain on sale and a lower provision for income
taxes.
Net Interest Income
Net interest income rose slightly to $12.6
million for the fourth quarter of 2022, from $12.5 million for the
third quarter of 2022, and down from $15.3 million for the fourth
quarter of 2021. The increase from the prior quarter was primarily
due to an increase in interest rates being paid on our cash
balances at the Federal Reserve which was partially offset by an
increase in the Bank’s deposit rates being paid to customers. The
decline from the prior year period was primarily due to lower
average loans held for sale balances.
Loan originations totaled $1.2 billion for the
fourth quarter of 2022, down from $1.5 billion for the third
quarter of 2022 and $2.3 billion for the fourth quarter of
2021.
Net interest margin for the fourth quarter of
2022 decreased to 14.27% compared to 14.93% for the third quarter
of 2022 and 16.62% for the fourth quarter of 2021. The decrease
from the previous quarter was primarily driven by the reduction in
average balances in the loans held for sale portfolio along with
the shifting of the deposit portfolio mix from lower costing
deposits to higher costing demand deposits. The net interest margin
decrease from the fourth quarter of 2021 was primarily driven by
lower average loans held for sale balances and an increase in
higher rate deposit balances.
Provision for Loan Losses
The Company’s provision for loan losses was $3.2
million for the fourth quarter of 2022, compared to $4.5 million
for the third quarter of 2022 and $2.5 million for the fourth
quarter of 2021. Compared to the previous quarter, the decrease in
provision for loan losses for the fourth quarter of 2022 was
primarily due to a decrease in strategic program loans held for
investment. Compared to the prior year period, the increase in the
provision for loan losses for the fourth quarter of 2022 was
primarily due to higher net charge-offs and growth of unguaranteed
loans held for investment.
Non-interest Income
|
|
For the Three Months Ended |
|
($s in thousands) |
|
12/31/2022 |
|
|
9/30/2022 |
|
|
12/31/2021 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
Strategic Program fees |
|
$ |
4,487 |
|
|
$ |
5,136 |
|
|
$ |
6,082 |
|
Gain on sale of loans |
|
|
4,163 |
|
|
|
1,923 |
|
|
|
1,813 |
|
SBA loan servicing fees |
|
|
547 |
|
|
|
327 |
|
|
|
356 |
|
Change in fair value on investment in BFG |
|
|
430 |
|
|
|
65 |
|
|
|
864 |
|
Other miscellaneous income |
|
|
148 |
|
|
|
72 |
|
|
|
14 |
|
Total noninterest income |
|
$ |
9,775 |
|
|
$ |
7,523 |
|
|
$ |
9,129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income was $9.8 million for the
fourth quarter of 2022, compared to $7.5 million for the third
quarter of 2022 and $9.1 million for the fourth quarter of 2021.
The increase from the previous quarter was driven primarily by an
increase in gain on sale of loans recorded to establish a new Loan
Trailing Fee Asset of approximately $2.3 million and an increase in
fair value of the Company’s investment in Business Funding Group,
LLC (“BFG”), partially offset by lower strategic program fees due
to the decline in loan origination volumes. Compared to the prior
year period, the increase in non-interest income was primarily due
to an increase in gain on sale of loans, partially offset by lower
strategic program fees resulting primarily from a decline in loan
origination volumes and a decrease in the change in fair value of
the Company’s investment in BFG.
Non-interest Expense
|
|
For the Three Months Ended |
|
($s in thousands) |
|
12/31/2022 |
|
|
9/30/2022 |
|
|
12/31/2021 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
$ |
5,805 |
|
|
$ |
5,137 |
|
|
$ |
6,052 |
|
Professional Services |
|
|
1,609 |
|
|
|
1,701 |
|
|
|
287 |
|
Occupancy and equipment expenses |
|
|
843 |
|
|
|
640 |
|
|
|
208 |
|
(Recovery) impairment of SBA servicing asset |
|
|
779 |
|
|
|
(127 |
) |
|
|
800 |
|
Other operating expenses |
|
|
1,184 |
|
|
|
1,118 |
|
|
|
1,024 |
|
Total noninterest expense |
|
$ |
10,220 |
|
|
$ |
8,469 |
|
|
$ |
8,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense was $10.2 million for the
fourth quarter of 2022, compared to $8.5 million for the third
quarter of 2022 and $8.4 million for the fourth quarter of 2021.
The increase from the previous quarter was primarily due to an
impairment on the Company’s SBA servicing asset in the fourth
quarter of 2022, which did not occur in the third quarter of 2022,
higher employee head count related to developing and upgrading new
and existing technology, and increased business infrastructure. The
increase compared to the fourth quarter of 2021 was primarily due
to increased professional services relating primarily to an
increase in consulting fees and increased depreciation from the
buildout of our corporate office which was partially offset by a
decrease in salaries and employee benefits.
The Company’s efficiency ratio was 45.6% for the
fourth quarter of 2022 as compared to 42.3% for the third quarter
of 2022 and 34.3% for the fourth quarter of 2021.
Tax Rate
The Company’s effective tax rate was
approximately 27.3% for the fourth quarter of 2022, compared to
48.7% for the third quarter of 2022 and 25.3% for the fourth
quarter of 2021. An immaterial error was corrected during the third
quarter of 2022 and is the primary reason for the higher effective
tax rate in that quarter.
Balance
Sheet
The Company’s total assets were $402.2 million
at December 31, 2022, an increase from $385.6 million at September
30, 2022 and $380.2 million at December 31, 2021. The increase from
September 30, 2022 was primarily due to an increase in deposits
utilized to fund the Company’s growth in cash and held for
investment loan portfolio, partially offset by a decrease in
deposits utilized to fund the Company’s held for sale loan
portfolio. The increase in total assets compared to December 31,
2021 was primarily due to an increase in cash from growth in
deposits to fund the Company’s held for investment loan portfolio,
partially offset by a decrease in deposits utilized to fund the
Company’s held for sale loan portfolio.
The following table shows the loan portfolio as
of the dates indicated:
|
|
As of |
|
|
|
12/31/2022 |
9/30/2022 |
12/31/2021 |
|
($s in thousands) |
|
Amount |
|
|
% of total loans |
|
|
Amount |
|
|
% of total loans |
|
|
Amount |
|
|
% of total loans |
|
SBA |
|
$ |
145,172 |
|
|
|
55.8 |
% |
|
$ |
127,455 |
|
|
|
49.6 |
% |
|
$ |
142,392 |
|
|
|
53.6 |
% |
Commercial, non real estate |
|
|
11,484 |
|
|
|
4.4 |
% |
|
|
12,970 |
|
|
|
5.1 |
% |
|
|
3,428 |
|
|
|
1.3 |
% |
Residential real estate |
|
|
37,815 |
|
|
|
14.5 |
% |
|
|
34,501 |
|
|
|
13.4 |
% |
|
|
27,108 |
|
|
|
10.2 |
% |
Strategic Program loans |
|
|
47,848 |
|
|
|
18.4 |
% |
|
|
70,290 |
|
|
|
27.4 |
% |
|
|
85,850 |
|
|
|
32.3 |
% |
Commercial real estate |
|
|
12,063 |
|
|
|
4.7 |
% |
|
|
6,149 |
|
|
|
2.4 |
% |
|
|
2,436 |
|
|
|
0.9 |
% |
Consumer |
|
|
5,808 |
|
|
|
2.2 |
% |
|
|
5,455 |
|
|
|
2.1 |
% |
|
|
4,574 |
|
|
|
1.7 |
% |
Total period end loans |
|
$ |
260,190 |
|
|
|
100.0 |
% |
|
$ |
256,820 |
|
|
|
100.0 |
% |
|
$ |
265,788 |
|
|
|
100.0 |
% |
Note: SBA loans as of December 31, 2022,
September 30, 2022 and December 31, 2021 include $0.6 million, $0.7
million and $1.1 million in PPP loans, respectively. SBA loans as
of December 31, 2022, September 30, 2022 and December 31, 2021
include $49.5 million, $42.6 million and $75.7 million,
respectively, of SBA 7(a) loan balances that are guaranteed by the
SBA. The held for investment balance on Strategic Programs with
annual interest rates below 36% as of December 31, 2022, September
30, 2022 and December 31, 2021 was $8.5 million, $10.2 million and
$8.5 million, respectively.
Total loans receivable at December 31, 2022
increased to $260.2 million from $256.8 million at September 30,
2022 and decreased from $265.8 million at December 31, 2021. The
increase in loans receivable compared to the amount at September
30, 2022 was due primarily to increases in SBA 7(a) loan balances,
and commercial real estate loans, partially offset by a decrease in
strategic program held for sale loans. The decrease in loans
receivable compared to the amount at December 31, 2021 was due
primarily to decreases in strategic program held for sale loans and
SBA 7(a) loan balances that are guaranteed by the SBA, partially
offset by increases in SBA 7(a) loan balances that are not
guaranteed by the SBA, residential real estate loans, commercial
real estate loans, and commercial non-real estate loans.
The following table shows the Company’s deposit composition as
of the dates indicated:
|
|
As of |
|
|
|
12/31/2022 |
9/30/2022 |
12/31/2021 |
|
($s in thousands) |
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
Noninterest-bearing demand deposits |
|
$ |
78,817 |
|
|
|
32.5 |
% |
|
$ |
97,654 |
|
|
|
42.0 |
% |
|
$ |
110,548 |
|
|
|
43.9 |
% |
Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
|
50,746 |
|
|
|
20.8 |
% |
|
|
55,152 |
|
|
|
23.6 |
% |
|
|
5,399 |
|
|
|
2.1 |
% |
Savings |
|
|
8,289 |
|
|
|
3.4 |
% |
|
|
7,252 |
|
|
|
3.1 |
% |
|
|
6,685 |
|
|
|
2.7 |
% |
Money market |
|
|
10,882 |
|
|
|
4.5 |
% |
|
|
12,281 |
|
|
|
5.3 |
% |
|
|
31,076 |
|
|
|
12.3 |
% |
Time certificates of deposit |
|
|
94,264 |
|
|
|
38.8 |
% |
|
|
60,499 |
|
|
|
26.0 |
% |
|
|
98,184 |
|
|
|
39.0 |
% |
Total period end deposits |
|
$ |
242,998 |
|
|
|
100.0 |
% |
|
$ |
232,838 |
|
|
|
100.0 |
% |
|
$ |
251,892 |
|
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits at December 31, 2022 increased to
$243.0 million from $232.8 million at September 30, 2022, and
decreased from $251.9 million at December 31, 2021. The increase
from the amount at September 30, 2022 was driven primarily by an
increase in time certificates of deposits, partially offset by
decreases in noninterest-bearing and interest-bearing demand
deposits. The decrease from the amount at December 31,
2021 was driven primarily by decreases in noninterest-bearing
demand deposits, money market deposits and time certificates of
deposit, partially offset by an increase in interest-bearing demand
deposits. The increase in interest-bearing demand deposits compared
to December 31, 2021, is primarily due to new HSA deposits from
Lively, Inc., a technology focused Health Savings Account
provider.
Total shareholders’ equity at December 31, 2022
increased $6.2 million to $140.5 million from $134.3 million at
September 30, 2022. Compared to December 31, 2021, total
shareholders’ equity at December 31, 2022 increased $25.1 million
from $115.4 million. The increase over both prior periods was
primarily due to the Company’s net income, partially offset by the
repurchase of common stock under the Company’s share repurchase
program.
Bank Regulatory Capital Ratios
The following table presents the leverage ratios for the Bank as
of the dates indicated as determined under the Community Bank
Leverage Ratio Framework of the Federal Deposit Insurance
Corporation:
|
|
As of |
|
2022 |
|
|
2021 |
|
Capital Ratios |
|
12/31/2022 |
|
|
9/30/2022 |
|
|
12/31/2021 |
|
Well-CapitalizedRequirement |
|
|
Well-CapitalizedRequirement |
|
Leverage Ratio |
|
|
25.1 |
% |
|
|
24.9 |
% |
|
17.7 |
% |
|
9.0 |
% |
|
|
8.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Bank’s capital levels remain significantly
above well-capitalized guidelines as of the end of the fourth
quarter of 2022.
Share Repurchase Program
On August 18, 2022, the Company’s Board of
Directors authorized a share repurchase program pursuant to which
the Company may repurchase up to 5% of outstanding common stock as
of August 16, 2022, or 644,241 shares of the Company’s common
stock, through August 31, 2024. As of December 31, 2022, the
Company has repurchased a total of 120,000 shares for a total of
$1.1 million.
Asset Quality
Nonperforming loans were $0.4 million or 0.1% of
total loans receivable at December 31, 2022, compared to $0.7
million or 0.2% of total loans receivable at December 31, 2021. The
Company did not have any nonperforming loans as of September 30,
2022. As noted above, the provision for loan losses was $3.2
million for the fourth quarter of 2022, compared to $4.5 million
for the third quarter of 2022 and $2.5 million for the fourth
quarter of 2021. The Company’s allowance for loan losses to total
loans was 4.6% at December 31, 2022 compared to 4.7% at September
30, 2022 and 3.7% at December 31, 2021.
For the fourth quarter of 2022, the Company’s
net charge-offs were $3.2 million, compared to $3.1 million for the
third quarter of 2022 and $2.3 million for the fourth quarter of
2021. The increase in net charge-offs compared to the third quarter
of 2022 was primarily driven by higher net charge-offs related to
retained strategic programs. The increase in net charge-offs
compared to the fourth quarter of 2021 was primarily driven by some
normalization of credit losses to pre-pandemic market conditions
and growth in the unguaranteed loans held for investment
balances.
The following table presents a summary of
changes in the allowance for loan losses and asset quality ratios
for the periods indicated:
|
|
For the Three Months Ended |
|
($s in thousands) |
|
12/31/2022 |
|
|
9/30/2022 |
|
|
12/31/2021 |
|
Allowance for Loan and Lease
Losses: |
|
|
|
|
|
|
|
|
|
Beginning Balance |
|
$ |
11,968 |
|
|
$ |
10,602 |
|
|
$ |
9,640 |
|
Provision |
|
|
3,202 |
|
|
|
4,457 |
|
|
|
2,503 |
|
Charge
offs |
|
|
|
|
|
|
|
|
|
|
|
|
SBA |
|
|
— |
|
|
|
(259 |
) |
|
|
(99 |
) |
Commercial, non real estate |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Residential real estate |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Strategic Program loans |
|
|
(3,440 |
) |
|
|
(3,070 |
) |
|
|
(2,380 |
) |
Commercial real estate |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer |
|
|
(62 |
) |
|
|
(4 |
) |
|
|
(1 |
) |
Recoveries |
|
|
|
|
|
|
|
|
|
|
|
|
SBA |
|
|
9 |
|
|
|
9 |
|
|
|
5 |
|
Commercial, non real estate |
|
|
— |
|
|
|
— |
|
|
|
11 |
|
Residential real estate |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Strategic Program loans |
|
|
244 |
|
|
|
233 |
|
|
|
176 |
|
Commercial real estate |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer |
|
|
64 |
|
|
|
— |
|
|
|
— |
|
Ending Balance |
|
$ |
11,985 |
|
|
$ |
11,968 |
|
|
$ |
9,855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios |
|
As of and For the Three Months Ended |
|
($s in thousands, annualized
ratios) |
|
12/31/2022 |
|
|
9/30/2022 |
|
|
12/31/2021 |
|
Nonperforming loans |
|
$ |
356 |
|
|
$ |
— |
|
|
$ |
657 |
|
Nonperforming loans to total
loans |
|
|
0.1 |
% |
|
|
0.0 |
% |
|
|
0.2 |
% |
Net charge offs to average
loans |
|
|
4.9 |
% |
|
|
4.7 |
% |
|
|
3.2 |
% |
Allowance for loan losses to
loans held for investment |
|
|
5.1 |
% |
|
|
5.6 |
% |
|
|
4.8 |
% |
Allowance for loan losses to
total loans |
|
|
4.6 |
% |
|
|
4.7 |
% |
|
|
3.7 |
% |
Net charge offs |
|
$ |
3,185 |
|
|
$ |
3,091 |
|
|
$ |
2,288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Webcast and
Conference
Call
Information
FinWise will host a conference call today at
5:30 PM ET to discuss its financial results for the fourth quarter
of 2022. A simultaneous audio webcast of the conference call will
be available on the Company’s investor relations section of the
website at
https://investors.finwisebancorp.com/events/event-details/finwise-bancorp-fourth-quarter-2022-earnings-conference-call.
The dial-in number for the conference call is (877) 423-9813
(toll-free) or (201) 689-8573 (international). Please dial the
number 10 minutes prior to the scheduled start time.
A webcast replay of the call will be available
on the Company’s website at https://finwisebank.gcs-web.com for six
months following the call.
Website Information
The Company intends to use its website,
www.finwisebancorp.com, as a means of disclosing material
non-public information and for complying with its disclosure
obligations under Regulation FD. Such disclosures will be included
in the Company’s website’s Investor Relations section. Accordingly,
investors should monitor the Investor Relations portion of the
Company’s website, in addition to following its press releases,
filings with the Securities and Exchange Commission (“SEC”), public
conference calls, and webcasts. To subscribe to the Company’s
e-mail alert service, please click the “Email Alerts” link in the
Investor Relations section of its website and submit your email
address. The information contained in, or that may be accessed
through, the Company’s website is not incorporated by reference
into or a part of this document or any other report or document it
files with or furnishes to the SEC, and any references to the
Company’s website are intended to be inactive textual references
only.
About FinWise Bancorp
FinWise Bancorp is a Utah bank holding company
headquartered in Murray, Utah. FinWise operates through its
wholly-owned subsidiary, FinWise Bank, a Utah state-chartered
non-member bank. FinWise currently operates one full-service
banking location in Sandy, Utah. FinWise is a nationwide lender to
and takes deposits from consumers and small businesses. Learn more
at www.finwisebancorp.com.
Contacts
investors@finwisebank.com
media@finwisebank.com
"Safe Harbor" Statement Under the Private Securities
Litigation Reform Act of 1995
This release 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 Company’s current views with respect to,
among other things, future events and its financial performance.
These statements are often, but not always, made through the use of
words or phrases such as “may,” “might,” “should,” “could,”
“predict,” “potential,” “believe,” “will likely result,” “expect,”
“continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,”
“plan,” “project,” “projection,” “forecast,” “budget,” “goal,”
“target,” “would,” “aim” and “outlook,” or the negative version of
those words or other comparable words or phrases of a future or
forward-looking nature. These forward-looking statements are not
historical facts, and are based on current expectations, estimates
and projections about the Company’s industry and management’s
beliefs and certain assumptions made by management, many of which,
by their nature, are inherently uncertain and beyond the Company’s
control. The inclusion of these forward-looking statements should
not be regarded as a representation by the Company or any other
person that such expectations, estimates and projections will be
achieved. Accordingly, the Company cautions you that any such
forward-looking statements are not guarantees of future performance
and are subject to risks, assumptions and uncertainties that are
difficult to predict. Although the Company believes that the
expectations reflected in these forward-looking statements are
reasonable as of the date made, actual results may prove to be
materially different from the results expressed or implied by the
forward-looking statements.
There are or will be important factors that
could cause the Company’s actual results to differ materially from
those indicated in these forward-looking statements, including, but
not limited to, the following: (a) the success of the financial
technology industry, the development and acceptance of which is
subject to a high degree of uncertainty, as well as the continued
evolution of the regulation of this industry; (b) the ability of
the Company’s Strategic Program service providers to comply with
regulatory regimes, including laws and regulations applicable to
consumer credit transactions, and the Company’s ability to
adequately oversee and monitor its Strategic Program service
providers; (c) the Company’s ability to maintain and grow its
relationships with its Strategic Program service providers; (d)
changes in the laws, rules, regulations, interpretations or
policies relating to financial institutions, accounting, tax,
trade, monetary and fiscal matters, including the application of
interest rate caps or maximums; (e) the Company’s ability to keep
pace with rapid technological changes in the industry or implement
new technology effectively; (f) conditions relating to the Covid-19
pandemic, including the severity and duration of the associated
economic slowdown either nationally or in the Company’s market
areas, and the response of governmental authorities to the Covid-19
pandemic and the Company’s participation in Covid-19-related
government programs such as the Paycheck Protection Program; (g)
system failure or cybersecurity breaches of the Company’s network
security; (h) the Company’s reliance on third-party service
providers for core systems support, informational website hosting,
internet services, online account opening and other processing
services; (i) general economic conditions, either nationally or in
the Company’s market areas (including interest rate environment,
government economic and monetary policies, the strength of global
financial markets and inflation and deflation), that impact the
financial services industry and/or the Company’s business; (j)
increased competition in the financial services industry,
particularly from regional and national institutions and other
companies that offer banking services; (k) the Company’s ability to
measure and manage its credit risk effectively and the potential
deterioration of the business and economic conditions in the
Company’s primary market areas; (l) the adequacy of the Company’s
risk management framework; (m) the adequacy of the Company’s
allowance for loan losses (“ALL”); (n) the financial soundness of
other financial institutions; (o) new lines of business or new
products and services; (p) changes in Small Business Administration
(“SBA”) rules, regulations and loan products, including
specifically the Section 7(a) program, changes in SBA standard
operating procedures or changes to the status of the Bank as an SBA
Preferred Lender; (q) changes in the value of collateral securing
the Company’s loans; (r) possible increases in the Company’s levels
of nonperforming assets; (s) potential losses from loan defaults
and nonperformance on loans; (t) the Company’s ability to protect
its intellectual property and the risks it faces with respect to
claims and litigation initiated against the Company; (u) the
inability of small- and medium-sized businesses to whom the Company
lends to weather adverse business conditions and repay loans; (v)
the Company’s ability to implement aspects of its growth strategy
and to sustain its historic rate of growth; (w) the Company’s
ability to continue to originate, sell and retain loans, including
through its Strategic Programs; (x) the concentration of the
Company’s lending and depositor relationships through Strategic
Programs in the financial technology industry generally; (y) the
Company’s ability to attract additional merchants and retain and
grow its existing merchant relationships; (z) interest rate risk
associated with the Company’s business, including sensitivity of
its interest earning assets and interest bearing liabilities to
interest rates, and the impact to its earnings from changes in
interest rates; (aa) the effectiveness of the Company’s internal
control over financial reporting and its ability to remediate any
future material weakness in its internal control over financial
reporting; (bb) potential exposure to fraud, negligence, computer
theft and cyber-crime and other disruptions in the Company’s
computer systems relating to its development and use of new
technology platforms; (cc) the Company’s dependence on its
management team and changes in management composition; (dd) the
sufficiency of the Company’s capital, including sources of capital
and the extent to which it may be required to raise additional
capital to meet its goals; (ee) compliance with laws and
regulations, supervisory actions, the Dodd-Frank Act, capital
requirements, the Bank Secrecy Act, anti-money laundering laws,
predatory lending laws, and other statutes and regulations; (ff)
the Company’s ability to maintain a strong core deposit base or
other low-cost funding sources; (gg) results of examinations of the
Company by its regulators, including the possibility that its
regulators may, among other things, require the Company to increase
its ALL or to write-down assets; (hh) the Company’s involvement
from time to time in legal proceedings, examinations and remedial
actions by regulators; (ii) further government intervention in the
U.S. financial system; (jj) natural disasters and adverse weather,
acts of terrorism, pandemics, an outbreak of hostilities or other
international or domestic calamities, and other matters beyond the
Company’s control; (kk) future equity and debt issuances; and (ll)
other factors listed from time to time in the Company’s filings
with the Securities and Exchange Commission, including, without
limitation, its Annual Report on Form 10-K for the year ended
December 31, 2021 and subsequent reports on Form 10-Q and Form
8-K.
The timing and amount of purchases under the
Company’s share repurchase program will be determined by management
based upon market conditions and other factors. Purchases may be
made pursuant to a program adopted under Rule 10b5-1 under the
Securities Exchange Act of 1934, as amended. The program does not
require the Company to purchase any specific number or amount of
shares and may be suspended or reinstated at any time in the
Company’s discretion and without notice.
Any forward-looking statement speaks only as of
the date of this release, and the Company does not undertake any
obligation to publicly update or review any forward-looking
statement, whether because of new information, future developments
or otherwise, except as required by law. New risks and
uncertainties may emerge from time to time, and it is not possible
for the Company to predict their occurrence. In addition, the
Company cannot assess the impact of each risk and uncertainty on
its business or the extent to which any risk or uncertainty, or
combination of risks and uncertainties, may cause actual results to
differ materially from those contained in any forward-looking
statements.
|
FINWISE
BANCORPCONSOLIDATED STATEMENTS OF FINANCIAL
CONDITION($s in thousands) |
|
|
|
|
|
As of |
|
|
|
12/31/2022 |
|
|
9/30/2022 |
|
|
12/31/2021 |
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
386 |
|
|
$ |
410 |
|
|
$ |
411 |
|
Interest-bearing deposits |
|
|
100,181 |
|
|
|
92,053 |
|
|
|
85,343 |
|
Total cash and cash equivalents |
|
|
100,567 |
|
|
|
92,463 |
|
|
|
85,754 |
|
Investment securities held-to-maturity, at cost |
|
|
14,292 |
|
|
|
13,925 |
|
|
|
11,423 |
|
Investment in Federal Home Loan Bank (FHLB) stock, at cost |
|
|
449 |
|
|
|
449 |
|
|
|
378 |
|
Strategic Program loans held-for-sale, at lower of cost or fair
value |
|
|
23,589 |
|
|
|
43,606 |
|
|
|
60,748 |
|
Loans receivable, net |
|
|
224,217 |
|
|
|
200,485 |
|
|
|
198,102 |
|
Premises and equipment, net |
|
|
9,478 |
|
|
|
6,830 |
|
|
|
3,285 |
|
Accrued interest receivable |
|
|
1,818 |
|
|
|
1,672 |
|
|
|
1,548 |
|
Deferred taxes, net |
|
|
1,167 |
|
|
|
2,164 |
|
|
|
1,823 |
|
SBA servicing asset, net |
|
|
5,210 |
|
|
|
5,269 |
|
|
|
3,938 |
|
Investment in Business Funding Group (BFG), at fair value |
|
|
4,800 |
|
|
|
4,500 |
|
|
|
5,900 |
|
Operating lease right-of-use (“ROU”) assets |
|
|
6,470 |
|
|
|
6,691 |
|
|
|
— |
|
Other assets |
|
|
10,152 |
|
|
|
7,515 |
|
|
|
7,315 |
|
Total
assets |
|
$ |
402,209 |
|
|
$ |
385,569 |
|
|
$ |
380,214 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
78,817 |
|
|
$ |
97,654 |
|
|
$ |
110,548 |
|
Interest-bearing |
|
|
164,181 |
|
|
|
135,184 |
|
|
|
141,344 |
|
Total deposits |
|
|
242,998 |
|
|
|
232,838 |
|
|
|
251,892 |
|
Accrued interest payable |
|
|
54 |
|
|
|
30 |
|
|
|
48 |
|
Income taxes payable, net |
|
|
1,077 |
|
|
|
1,066 |
|
|
|
233 |
|
PPP Liquidity Facility |
|
|
314 |
|
|
|
345 |
|
|
|
1,050 |
|
Operating lease liabilities |
|
|
8,449 |
|
|
|
7,249 |
|
|
|
— |
|
Other liabilities |
|
|
8,858 |
|
|
|
9,756 |
|
|
|
11,549 |
|
Total
liabilities |
|
|
261,750 |
|
|
|
251,284 |
|
|
|
264,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’
equity |
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
|
13 |
|
|
|
13 |
|
|
|
13 |
|
Additional paid-in-capital |
|
|
54,614 |
|
|
|
55,113 |
|
|
|
54,836 |
|
Retained earnings |
|
|
85,832 |
|
|
|
79,159 |
|
|
|
60,593 |
|
Total shareholders’
equity |
|
|
140,459 |
|
|
|
134,285 |
|
|
|
115,442 |
|
Total liabilities and
shareholders’ equity |
|
$ |
402,209 |
|
|
$ |
385,569 |
|
|
$ |
380,214 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINWISE
BANCORPCONSOLIDATED STATEMENTS OF
INCOME($s in thousands, except per share amounts;
Unaudited) |
|
|
|
|
|
|
For the Three Months Ended |
|
|
|
12/31/2022 |
|
|
9/30/2022 |
|
|
12/31/2021 |
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
12,440 |
|
|
$ |
12,481 |
|
|
$ |
15,500 |
|
Interest on securities |
|
|
73 |
|
|
|
52 |
|
|
|
28 |
|
Other interest income |
|
|
757 |
|
|
|
290 |
|
|
|
25 |
|
Total interest income |
|
|
13,270 |
|
|
|
12,823 |
|
|
|
15,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
624 |
|
|
|
303 |
|
|
|
279 |
|
Interest on PPP Liquidity Facility |
|
|
— |
|
|
|
1 |
|
|
|
2 |
|
Total interest expense |
|
|
624 |
|
|
|
304 |
|
|
|
281 |
|
Net interest
income |
|
|
12,646 |
|
|
|
12,519 |
|
|
|
15,272 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
|
|
3,202 |
|
|
|
4,457 |
|
|
|
2,503 |
|
Net interest income after
provision for loan losses |
|
|
9,444 |
|
|
|
8,062 |
|
|
|
12,769 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
|
|
|
Strategic Program fees |
|
|
4,487 |
|
|
|
5,136 |
|
|
|
6,082 |
|
Gain on sale of loans, net |
|
|
4,163 |
|
|
|
1,923 |
|
|
|
1,813 |
|
SBA loan servicing fees |
|
|
547 |
|
|
|
327 |
|
|
|
356 |
|
Change in fair value on investment in BFG |
|
|
430 |
|
|
|
65 |
|
|
|
864 |
|
Other miscellaneous income |
|
|
148 |
|
|
|
72 |
|
|
|
14 |
|
Total non-interest income |
|
|
9,775 |
|
|
|
7,523 |
|
|
|
9,129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
5,805 |
|
|
|
5,137 |
|
|
|
6,052 |
|
Professional services |
|
|
1,609 |
|
|
|
1,701 |
|
|
|
287 |
|
Occupancy and equipment expenses |
|
|
843 |
|
|
|
640 |
|
|
|
208 |
|
(Recovery) impairment of SBA servicing asset |
|
|
779 |
|
|
|
(127 |
) |
|
|
800 |
|
Other operating expenses |
|
|
1,184 |
|
|
|
1,118 |
|
|
|
1,024 |
|
Total non-interest
expense |
|
|
10,220 |
|
|
|
8,469 |
|
|
|
8,371 |
|
Income before income
tax expense |
|
|
8,999 |
|
|
|
7,116 |
|
|
|
13,527 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
|
2,454 |
|
|
|
3,462 |
|
|
|
3,416 |
|
Net
income |
|
$ |
6,545 |
|
|
$ |
3,654 |
|
|
|
10,111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic |
|
$ |
0.51 |
|
|
$ |
0.28 |
|
|
$ |
0.95 |
|
Earnings per share,
diluted |
|
$ |
0.49 |
|
|
$ |
0.27 |
|
|
$ |
0.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding, basic |
|
|
12,740,933 |
|
|
|
12,784,298 |
|
|
|
10,169,005 |
|
Weighted average shares
outstanding, diluted |
|
|
13,218,403 |
|
|
|
13,324,059 |
|
|
|
10,818,984 |
|
Shares outstanding at end of
period |
|
|
12,831,345 |
|
|
|
12,864,821 |
|
|
|
12,772,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINWISE
BANCORPCONSOLIDATED STATEMENTS OF
INCOME($s in thousands, except per share
amounts) |
|
|
|
|
|
For the Years Ended |
|
|
|
12/31/2022 |
|
|
12/31/2021 |
|
|
|
(Unaudited) |
|
|
Interest
income |
|
|
|
|
|
Interest and fees on loans |
|
$ |
50,941 |
|
|
$ |
49,135 |
|
Interest on securities |
|
|
208 |
|
|
|
47 |
|
Other interest income |
|
|
1,180 |
|
|
|
61 |
|
Total interest income |
|
|
52,329 |
|
|
|
49,243 |
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
1,432 |
|
|
|
1,138 |
|
Interest on PPP Liquidity Facility |
|
|
2 |
|
|
|
127 |
|
Total interest expense |
|
|
1,434 |
|
|
|
1,265 |
|
Net interest
income |
|
|
50,895 |
|
|
|
47,978 |
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
|
|
13,519 |
|
|
|
8,039 |
|
Net interest income after
provision for loan losses |
|
|
37,376 |
|
|
|
39,939 |
|
|
|
|
|
|
|
|
|
|
Non-interest
income |
|
|
|
|
|
|
|
|
Strategic Program fees |
|
|
22,467 |
|
|
|
17,959 |
|
Gain on sale of loans, net |
|
|
13,550 |
|
|
|
9,689 |
|
SBA loan servicing fees |
|
|
1,603 |
|
|
|
1,156 |
|
Change in fair value on investment in BFG |
|
|
(478 |
) |
|
|
2,991 |
|
Other miscellaneous income |
|
|
269 |
|
|
|
49 |
|
Total non-interest income |
|
|
37,411 |
|
|
|
31,844 |
|
|
|
|
|
|
|
|
|
|
Non-interest
expense |
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
24,489 |
|
|
|
22,365 |
|
Professional services |
|
|
5,454 |
|
|
|
1,049 |
|
Occupancy and equipment expenses |
|
|
2,204 |
|
|
|
810 |
|
(Recovery) impairment of SBA servicing asset |
|
|
1,728 |
|
|
|
800 |
|
Other operating expenses |
|
|
4,881 |
|
|
|
4,487 |
|
Total non-interest
expense |
|
|
38,756 |
|
|
|
29,511 |
|
Income before income
tax expense |
|
|
36,031 |
|
|
|
42,272 |
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
|
10,916 |
|
|
|
10,689 |
|
Net
income |
|
$ |
25,115 |
|
|
$ |
31,583 |
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic |
|
$ |
1.96 |
|
|
$ |
3.44 |
|
Earnings per share,
diluted |
|
$ |
1.87 |
|
|
$ |
3.27 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding, basic |
|
|
12,729,898 |
|
|
|
8,669,724 |
|
Weighted average shares
outstanding, diluted |
|
|
13,357,022 |
|
|
|
9,108,163 |
|
Shares outstanding at end of
period |
|
|
12,831,345 |
|
|
|
12,772,010 |
|
|
|
|
|
|
|
|
|
|
|
FINWISE BANCORPAVERAGE
BALANCES, YIELDS, AND RATES($s in thousands;
Unaudited) |
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
For the Three Months Ended |
|
|
For the Three Months Ended |
|
|
|
12/31/2022 |
|
|
9/30/2022 |
|
|
12/31/2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
AverageBalance |
|
|
Interest |
|
|
AverageYield/Rate |
|
|
AverageBalance |
|
|
Interest |
|
|
AverageYield/Rate |
|
|
Average Balance |
|
|
Interest |
|
|
AverageYield/Rate |
|
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with
the Federal Reserve, non- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. central banks and other banks |
|
$ |
78,619 |
|
|
$ |
757 |
|
|
|
3.85 |
% |
|
$ |
59,337 |
|
|
$ |
290 |
|
|
|
1.95 |
% |
|
$ |
72,746 |
|
|
$ |
25 |
|
|
|
0.14 |
% |
Investment securities |
|
|
14,414 |
|
|
|
73 |
|
|
|
2.03 |
% |
|
|
12,418 |
|
|
|
52 |
|
|
|
1.67 |
% |
|
|
8,078 |
|
|
|
28 |
|
|
|
1.39 |
% |
Loans held for sale |
|
|
43,751 |
|
|
|
3,990 |
|
|
|
36.48 |
% |
|
|
50,516 |
|
|
|
4,533 |
|
|
|
35.89 |
% |
|
|
87,156 |
|
|
|
7,553 |
|
|
|
34.66 |
% |
Loans held for investment |
|
|
217,619 |
|
|
|
8,450 |
|
|
|
15.53 |
% |
|
|
213,080 |
|
|
|
7,948 |
|
|
|
14.92 |
% |
|
|
199,609 |
|
|
|
7,947 |
|
|
|
15.93 |
% |
Total interest earning
assets |
|
|
354,403 |
|
|
|
13,270 |
|
|
|
14.98 |
% |
|
|
335,351 |
|
|
|
12,823 |
|
|
|
15.30 |
% |
|
|
367,589 |
|
|
|
15,553 |
|
|
|
16.92 |
% |
Less: ALL |
|
|
(11,683 |
) |
|
|
|
|
|
|
|
|
|
|
(10,768 |
) |
|
|
|
|
|
|
|
|
|
|
(9,450 |
|
|
|
|
|
|
|
|
|
Non-interest earning
assets |
|
|
32,891 |
|
|
|
|
|
|
|
|
|
|
|
32,626 |
|
|
|
|
|
|
|
|
|
|
|
24,379 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
375,611 |
|
|
|
|
|
|
|
|
|
|
$ |
357,209 |
|
|
|
|
|
|
|
|
|
|
$ |
382,518 |
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
$ |
44,115 |
|
|
$ |
375 |
|
|
|
3.40 |
% |
|
$ |
11,857 |
|
|
$ |
113 |
|
|
|
3.81 |
% |
|
$ |
7,411 |
|
|
$ |
15 |
|
|
|
0.81 |
% |
Savings |
|
|
7,605 |
|
|
|
5 |
|
|
|
0.26 |
% |
|
|
7,514 |
|
|
|
1 |
|
|
|
0.05 |
% |
|
|
7,573 |
|
|
|
1 |
|
|
|
0.05 |
% |
Money market accounts |
|
|
15,109 |
|
|
|
45 |
|
|
|
1.19 |
% |
|
|
20,615 |
|
|
|
29 |
|
|
|
0.56 |
% |
|
|
28,859 |
|
|
|
21 |
|
|
|
0.28 |
% |
Certificates of deposit |
|
|
59,273 |
|
|
|
199 |
|
|
|
1.34 |
% |
|
|
64,789 |
|
|
|
160 |
|
|
|
0.99 |
% |
|
|
104,134 |
|
|
|
242 |
|
|
|
0.93 |
% |
Total deposits |
|
|
126,102 |
|
|
|
624 |
|
|
|
1.98 |
% |
|
|
104,775 |
|
|
|
303 |
|
|
|
1.16 |
% |
|
|
147,977 |
|
|
|
279 |
|
|
|
0.75 |
% |
Other borrowings |
|
|
330 |
|
|
|
— |
|
|
|
0.35 |
% |
|
|
360 |
|
|
|
1 |
|
|
|
0.35 |
% |
|
|
1,437 |
|
|
|
2 |
|
|
|
0.63 |
% |
Total interest bearing
liabilities |
|
|
126,432 |
|
|
|
624 |
|
|
|
1.97 |
% |
|
|
105,135 |
|
|
|
304 |
|
|
|
1.16 |
% |
|
|
149,414 |
|
|
|
281 |
|
|
|
0.75 |
% |
Non-interest bearing
deposits |
|
|
96,581 |
|
|
|
|
|
|
|
|
|
|
|
102,575 |
|
|
|
|
|
|
|
|
|
|
|
127,590 |
|
|
|
|
|
|
|
|
|
Non-interest bearing
liabilities |
|
|
17,164 |
|
|
|
|
|
|
|
|
|
|
|
17,542 |
|
|
|
|
|
|
|
|
|
|
|
16,315 |
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
135,434 |
|
|
|
|
|
|
|
|
|
|
|
131,957 |
|
|
|
|
|
|
|
|
|
|
|
89,199 |
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders’ equity |
|
$ |
375,611 |
|
|
|
|
|
|
|
|
|
|
$ |
357,209 |
|
|
|
|
|
|
|
|
|
|
$ |
382,518 |
|
|
|
|
|
|
|
|
|
Net interest income and
interest rate spread |
|
|
|
|
|
$ |
12,646 |
|
|
|
13.01 |
% |
|
|
|
|
|
$ |
12,519 |
|
|
|
14.14 |
% |
|
|
|
|
|
$ |
15,272 |
|
|
|
16.17 |
% |
Net interest margin |
|
|
|
|
|
|
|
|
|
|
14.27 |
% |
|
|
|
|
|
|
|
|
|
|
14.93 |
% |
|
|
|
|
|
|
|
|
|
|
16.62 |
% |
Ratio of average
interest-earning assets to average interest- bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
280.31 |
% |
|
|
|
|
|
|
|
|
|
|
318.97 |
% |
|
|
|
|
|
|
|
|
|
|
246.02 |
% |
Note: Average PPP loans for the three months ended December 31,
2022, September 30, 2022 and December 31, 2021 were $0.6 million,
$0.7 million and $1.5 million, respectively.
|
FINWISE BANCORPAVERAGE
BALANCES, YIELDS, AND RATES($s in
thousands) |
|
|
|
|
|
|
|
For the Year Ended |
For the Year Ended |
|
|
|
12/31/2022 |
|
|
12/31/2021 |
|
|
|
(Unaudited) |
|
|
|
|
|
|
AverageBalance |
|
|
Interest |
|
|
AverageYield/Rate |
|
|
AverageBalance |
|
|
Interest |
|
|
AverageYield/Rate |
|
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with
the Federal Reserve, non- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. central banks and other banks |
|
$ |
74,920 |
|
|
$ |
1,180 |
|
|
|
1.58 |
% |
|
$ |
55,960 |
|
|
$ |
61 |
|
|
|
0.11 |
% |
Investment securities |
|
|
12,491 |
|
|
|
208 |
|
|
|
1.67 |
% |
|
|
3,298 |
|
|
|
47 |
|
|
|
1.43 |
% |
Loans held for sale |
|
|
65,737 |
|
|
|
21,237 |
|
|
|
32.31 |
% |
|
|
59,524 |
|
|
|
22,461 |
|
|
|
37.73 |
% |
Loans held for investment |
|
|
209,352 |
|
|
|
29,704 |
|
|
|
14.19 |
% |
|
|
198,992 |
|
|
|
26,674 |
|
|
|
13.40 |
% |
Total interest earning
assets |
|
|
362,500 |
|
|
|
52,329 |
|
|
|
14.44 |
% |
|
|
317,774 |
|
|
|
49,243 |
|
|
|
15.50 |
% |
Less: ALL |
|
|
(10,816 |
) |
|
|
|
|
|
|
|
|
|
|
(7,548 |
) |
|
|
|
|
|
|
|
|
Non-interest earning
assets |
|
|
30,141 |
|
|
|
|
|
|
|
|
|
|
|
17,002 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
381,825 |
|
|
|
|
|
|
|
|
|
|
$ |
327,228 |
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
$ |
17,564 |
|
|
$ |
531 |
|
|
|
3.02 |
% |
|
$ |
6,060 |
|
|
$ |
53 |
|
|
|
0.87 |
% |
Savings |
|
|
7,310 |
|
|
|
7 |
|
|
|
0.10 |
% |
|
|
7,897 |
|
|
|
10 |
|
|
|
0.13 |
% |
Money market accounts |
|
|
26,054 |
|
|
|
116 |
|
|
|
0.45 |
% |
|
|
21,964 |
|
|
|
75 |
|
|
|
0.34 |
% |
Certificates of deposit |
|
|
71,661 |
|
|
|
778 |
|
|
|
1.09 |
% |
|
|
72,311 |
|
|
|
1,000 |
|
|
|
1.38 |
% |
Total deposits |
|
|
122,589 |
|
|
|
1,432 |
|
|
|
1.17 |
% |
|
|
108,232 |
|
|
|
1,138 |
|
|
|
1.05 |
% |
Other borrowings |
|
|
566 |
|
|
|
2 |
|
|
|
0.35 |
% |
|
|
36,363 |
|
|
|
127 |
|
|
|
0.35 |
% |
Total interest bearing
liabilities |
|
|
123,155 |
|
|
|
1,434 |
|
|
|
1.16 |
% |
|
|
144,595 |
|
|
|
1,265 |
|
|
|
0.87 |
% |
Non-interest bearing
deposits |
|
|
114,174 |
|
|
|
|
|
|
|
|
|
|
|
107,481 |
|
|
|
|
|
|
|
|
|
Non-interest bearing
liabilities |
|
|
15,781 |
|
|
|
|
|
|
|
|
|
|
|
11,392 |
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
128,715 |
|
|
|
|
|
|
|
|
|
|
|
63,760 |
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders’ equity |
|
$ |
381,825 |
|
|
|
|
|
|
|
|
|
|
$ |
327,228 |
|
|
|
|
|
|
|
|
|
Net interest income and
interest rate spread |
|
|
|
|
|
$ |
50,895 |
|
|
|
13.28 |
% |
|
|
|
|
|
$ |
47,978 |
|
|
|
14.63 |
% |
Net interest margin |
|
|
|
|
|
|
|
|
|
|
14.04 |
% |
|
|
|
|
|
|
|
|
|
|
15.10 |
% |
Ratio of average
interest-earning assets to average interest- bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
294.34 |
% |
|
|
|
|
|
|
|
|
|
|
219.77 |
% |
Note: Average PPP loans for the years ended December 31, 2022
and December 31, 2021 were $0.8 million and $36.6 million,
respectively.
|
FINWISE
BANCORPSELECTED HISTORICAL CONSOLIDATED FINANCIAL
AND OTHER DATA($s in thousands, except per share
amounts; Unaudited) |
|
|
|
|
|
As of and for the Three Months Ended |
|
|
12/31/2022 |
|
|
9/30/2022 |
|
|
12/31/2021 |
|
|
|
|
|
|
|
|
|
|
|
Selected Loan
Metrics |
|
|
|
|
|
|
|
|
|
Amount of loans originated |
|
$ |
1,219,851 |
|
|
$ |
1,506,100 |
|
|
$ |
2,304,234 |
|
Selected Income Statement
Data |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
13,270 |
|
|
$ |
12,823 |
|
|
$ |
15,553 |
|
Interest expense |
|
|
624 |
|
|
|
304 |
|
|
|
281 |
|
Net interest income |
|
|
12,646 |
|
|
|
12,519 |
|
|
|
15,272 |
|
Provision for loan losses |
|
|
3,202 |
|
|
|
4,457 |
|
|
|
2,503 |
|
Net interest income after
provision for loan losses |
|
|
9,444 |
|
|
|
8,062 |
|
|
|
12,769 |
|
Non-interest income |
|
|
9,775 |
|
|
|
7,523 |
|
|
|
9,129 |
|
Non-interest expense |
|
|
10,220 |
|
|
|
8,469 |
|
|
|
8,371 |
|
Provision for income taxes |
|
|
2,454 |
|
|
|
3,462 |
|
|
|
3,416 |
|
Net income |
|
|
6,545 |
|
|
|
3,654 |
|
|
|
10,111 |
|
Selected Balance Sheet
Data |
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
402,209 |
|
|
$ |
385,569 |
|
|
$ |
380,214 |
|
Cash and cash equivalents |
|
|
100,567 |
|
|
|
92,463 |
|
|
|
85,754 |
|
Investment securities
held-to-maturity, at cost |
|
|
14,292 |
|
|
|
13,925 |
|
|
|
11,423 |
|
Loans receivable, net |
|
|
224,217 |
|
|
|
200,485 |
|
|
|
198,102 |
|
Strategic Program loans
held-for-sale, at lower of cost or fair value |
|
|
23,589 |
|
|
|
43,606 |
|
|
|
60,748 |
|
SBA servicing asset, net |
|
|
5,210 |
|
|
|
5,269 |
|
|
|
3,938 |
|
Investment in Business Funding
Group, at fair value |
|
|
4,800 |
|
|
|
4,500 |
|
|
|
5,900 |
|
Deposits |
|
|
242,998 |
|
|
|
232,838 |
|
|
|
251,892 |
|
PPP Liquidity Facility |
|
|
314 |
|
|
|
345 |
|
|
|
1,050 |
|
Total shareholders' equity |
|
|
140,459 |
|
|
|
134,285 |
|
|
|
115,442 |
|
Tangible shareholders’
equity(1) |
|
|
140,459 |
|
|
|
134,285 |
|
|
|
115,442 |
|
Share and Per Share
Data |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic |
|
$ |
0.51 |
|
|
$ |
0.28 |
|
|
$ |
0.95 |
|
Earnings per share - diluted |
|
$ |
0.49 |
|
|
$ |
0.27 |
|
|
$ |
0.90 |
|
Book value per share |
|
$ |
10.95 |
|
|
$ |
10.44 |
|
|
$ |
9.04 |
|
Tangible book value per
share(1) |
|
$ |
10.95 |
|
|
$ |
10.44 |
|
|
$ |
9.04 |
|
Weighted avg outstanding shares -
basic |
|
|
12,740,933 |
|
|
|
12,784,298 |
|
|
|
10,169,005 |
|
Weighted avg outstanding shares -
diluted |
|
|
13,218,403 |
|
|
|
13,324,059 |
|
|
|
10,818,984 |
|
Shares outstanding at end of
period |
|
|
12,831,345 |
|
|
|
12,864,821 |
|
|
|
12,772,010 |
|
Asset Quality
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to total
loans |
|
|
0.1 |
% |
|
|
0.0 |
% |
|
|
0.2 |
% |
Net charge offs to average
loans |
|
|
4.9 |
% |
|
|
4.7 |
% |
|
|
3.2 |
% |
Allowance for loan losses to
loans held for investment |
|
|
5.1 |
% |
|
|
5.6 |
% |
|
|
4.8 |
% |
Allowance for loan losses to
total loans |
|
|
4.6 |
% |
|
|
4.7 |
% |
|
|
3.7 |
% |
Capital
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity to
total assets |
|
|
34.9 |
% |
|
|
34.8 |
% |
|
|
30.4 |
% |
Tangible shareholders’ equity to
tangible assets(1) |
|
|
34.9 |
% |
|
|
34.8 |
% |
|
|
30.4 |
% |
Leverage Ratio (Bank under
CBLR) |
|
|
25.1 |
% |
|
|
24.9 |
% |
|
|
17.7 |
% |
(1) This measure is not a measure recognized under United States
generally accepted accounting principles, or GAAP, and is therefore
considered to be a non-GAAP financial measure. See “Reconciliation
of Non-GAAP to GAAP Financial Measures” for a reconciliation of
this measure to its most comparable GAAP measure. Tangible
shareholders’ equity is defined as total shareholders’ equity less
goodwill and other intangible assets. The most directly comparable
GAAP financial measure is total shareholder’s equity. We had no
goodwill or other intangible assets as of any of the dates
indicated. We have not considered loan servicing rights or loan
trailing fee asset as intangible assets for purposes of this
calculation. As a result, tangible shareholders’ equity is the same
as total shareholders’ equity as of each of the dates
indicated.
|
Reconciliation of Non-GAAP to GAAP
Financial Measures |
|
|
|
Efficiency
ratio |
|
For the Three Months Ended |
|
|
12/31/2022 |
|
|
9/30/2022 |
|
|
12/31/2021 |
|
($s in thousands) |
|
|
|
|
|
|
|
|
|
Non-interest expense |
|
$ |
10,220 |
|
|
$ |
8,469 |
|
|
$ |
8,371 |
|
Net interest income |
|
|
12,646 |
|
|
|
12,519 |
|
|
|
15,272 |
|
Total non-interest income |
|
|
9,775 |
|
|
|
7,523 |
|
|
|
9,129 |
|
Adjusted operating revenue |
|
$ |
22,421 |
|
|
$ |
20,042 |
|
|
$ |
24,401 |
|
Efficiency ratio |
|
|
45.6 |
% |
|
|
42.3 |
% |
|
|
34.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
FinWise Bancorp (NASDAQ:FINW)
Historical Stock Chart
From Jun 2024 to Jul 2024
FinWise Bancorp (NASDAQ:FINW)
Historical Stock Chart
From Jul 2023 to Jul 2024