Finwise Bancorp Files 2023 Annual Report on Form 10-K

TL;DR

<b>Finwise Bancorp has filed its 2023 10-K annual report, detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Finwise Bancorp (FINW) filed a Annual Report (10-K) with the SEC on March 25, 2024. Finwise Bancorp filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located at 756 East Winchester Street #100, Murray, UT 84107. Finwise Bancorp is classified under Standard Industrial Classification Code 6022 (State Commercial Banks). The filing includes financial data for the fiscal years 2023, 2022, and 2021.

Why It Matters

For investors and stakeholders tracking Finwise Bancorp, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Finwise Bancorp's financial health, operational performance, and strategic direction for the past fiscal year, crucial for investors and stakeholders to assess the company's current standing and future prospects. As a publicly traded entity, the timely filing of a 10-K is a regulatory requirement that ensures transparency and allows the market to evaluate the company's financial position, including assets, liabilities, revenues, and expenses.

Risk Assessment

Risk Level: medium — Finwise Bancorp shows moderate risk based on this filing. The filing is a standard 10-K, which typically contains detailed financial information and risk factors, but without specific negative disclosures or significant positive trends highlighted in the provided header data, the risk level is assessed as medium.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand Finwise Bancorp's performance and potential challenges.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of report)
• 2024-03-25 — Filing Date (Date of filing)
• 2023-01-01 — Fiscal Year Start (Period of report)

Key Players & Entities

• Finwise Bancorp (company) — Filer name
• 756 East Winchester Street #100, Murray, UT 84107 (address) — Business address
• 801-545-6003 (phone) — Business phone
• 6022 (sic_code) — Standard Industrial Classification

FAQ

Industry Context

Finwise Bancorp operates within the State Commercial Banks industry, as indicated by its SIC code 6022. This sector is characterized by traditional banking services.

Regulatory Implications

As a commercial bank, Finwise Bancorp is subject to regulations from various financial authorities, including the SEC, and potentially state banking regulators.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and asset growth.
2. Examine the risk factors section for potential operational, financial, or regulatory challenges.
3. Review management's discussion and analysis (MD&A) for insights into business strategy and outlook.

Key Dates

• 2023-12-31: Fiscal Year End — Defines the reporting period for the 10-K.
• 2024-03-25: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing data provided for the 10-K, so a comparison to a previous filing is not possible with the given information.

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share FINW The NASDAQ Stock Market
• $6.67 — 270,000 shares, at an exercise price of $6.67 per share. Unless otherwise exercised,
• $131.7 million — e: SBA loans in the table above include $131.7 million of SBA 7(a) loan balances that are guar
• $122.9 million — r 31, 2023, we originated approximately $122.9 million in SBA 7(a) loans and held approximatel
• $239.9 million — n SBA 7(a) loans and held approximately $239.9 million of SBA 7(a) loans on our balance sheet
• $108.2 million — 7 million was guaranteed by the SBA and $108.2 million was unguaranteed. As of December 31, 20
• $5 million — loans. The maximum 7(a) loan amount is $5 million. The guaranty is conditional and covers
• $4.1 billion — r 31, 2023, we originated approximately $4.1 billion in Strategic Program loans and had appr
• $19.4 million — gic Program loans and had approximately $19.4 million in Strategic Program loans held for inv
• $68.1 million — ionships held balances of approximately $68.1 million (including $29.8 million held as collat
• $29.8 million — approximately $68.1 million (including $29.8 million held as collateral) as of December 31,
• $68.9 million — g operations consisted of approximately $68.9 million in loans (including approximately $60.9
• $60.9 million — llion in loans (including approximately $60.9 million of residential and commercial real esta

Filing Documents

• finw-20231231.htm (10-K) — 3299KB
• auditorsconsent.htm (EX-23.1) — 1KB
• finw-20231231xex3111.htm (EX-31.1) — 11KB
• finw-20231231xex3121.htm (EX-31.2) — 11KB
• finw-20231231xex3211.htm (EX-32.1) — 8KB
• finwisebancorpcompensation.htm (EX-97.1) — 18KB
• image.jpg (GRAPHIC) — 45KB
• 0001856365-24-000013.txt (&nbsp;) — 15963KB
• finw-20231231.xsd (EX-101.SCH) — 83KB
• finw-20231231_cal.xml (EX-101.CAL) — 132KB
• finw-20231231_def.xml (EX-101.DEF) — 487KB
• finw-20231231_lab.xml (EX-101.LAB) — 993KB
• finw-20231231_pre.xml (EX-101.PRE) — 837KB
• finw-20231231_htm.xml (XML) — 2870KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 19 Item 1B. Unresolved Staff Comments 42 Item 1C C ybersecu rity 42 Item 2.

Properties

Properties 44 Item 3.

Legal Proceedings

Legal Proceedings 44 Item 4. Mine Safety Disclosures 44 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 45 Item 6. [Reserved] 46 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operation

Management's Discussion and Analysis of Financial Condition and Results of Operation 47 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 75 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 76 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 120 Item 9A.

Controls and Procedures

Controls and Procedures 120 Item 9B. Other Information 120 Part III Item 10. Directors, Executive Officers and Corporate Governance 121 Item 11.

Executive Compensation

Executive Compensation 109 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 121 Item 13. Certain Relationships and Related Transactions, and Director Independence 121 Item 14. Principal Accounting Fees and Services 121 Part IV Item 15. Exhibits and Financial Statement Schedules 122

Signatures

Signatures 125 2 Ind ex CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K (this "Report") 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 our industry and management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. The inclusion of these forward-looking statements should not be regarded as a representation by us or any other person that such expectations, estimates and projections will be achieved. Accordingly, we caution 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 we believe 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. The following factors, among others, could cause our financial performance to differ materially from that expressed in such forward-looking statements, including, but not limi

Business

Item 1. Business In this Report, unless we state otherwise or the context otherwise requires, references to "we," "our," "us," "the Company" and "FinWise Bancorp" refer to FinWise Bancorp and its wholly owned subsidiaries, FinWise Bank (which we sometimes refer to as "FinWise Bank," "FinWise," "the Bank" or "our Bank,") and FinWise Investments, LLC. References to "common stock" refer to our voting common stock. 4 Ind ex Overview We are FinWise Bancorp, a Utah bank holding company headquartered in Murray, Utah. We operate through our wholly-owned subsidiary, FinWise Bank, a Utah state-chartered bank. We currently operate one full-service banking location in Sandy, Utah. We are a nationwide lender to consumers and small businesses. We believe that traditional barriers to servicing banking customers have been substantially lowered due to technological advances in the distribution and management of banking products and services. We seek to capitalize on these advances by leveraging strategic relationships, as well as proprietary loan origination systems and data analytics technology, to expand our reach in marketing channels utilized and credit products offered. As a technology-focused bank, we have utilized technology-oriented loan origination platforms in our Strategic Programs, SBA lending, Residential & Owner Occupied Commercial Real Estate, and Equipment Financing business lines. We have also deployed our own in-house technology to deliver loan and deposit solutions to our customers directly and through third parties. The Company was formed in 2002 and acquired 100% of the stock of Utah Community Bank, a local community bank founded in 1999 focusing on real estate lending in and around the Salt Lake City, Utah MSA. While the Bank is our primary asset we also have a 20% membership interest in BFG, a Connecticut limited liability company, a nationally significant referral source for SBA loans and a legal lending facilitator. As described below, we have a righ

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View this 10-K filing on SEC EDGAR