First Western Financial, Inc. (“First Western” or the “Company”)
(NASDAQ: MYFW), today reported financial results for the first
quarter ended March 31, 2024.
Net income available to common shareholders was
$2.5 million, or $0.26 per diluted share, for the first quarter of
2024. This compares to Net loss of $3.2 million, or $(0.34)
per diluted share, for the fourth quarter of 2023, and Net income
of $3.8 million, or $0.39 per diluted share, for the first
quarter of 2023.
Scott C. Wylie, CEO of First Western, commented,
"While continuing to prioritize prudent risk management and a
conservative approach to new loan production, we delivered a higher
level of profitability during the first quarter compared to Q4
2023. As a result of strong execution on our strategic priorities,
we saw positive trends in a number of key areas including further
improvement in our loan-to-deposit ratio, a higher level of
non-interest income driven by our wealth management and mortgage
banking businesses, and improvement in our asset quality with a
decline in non-performing loans and net charge-offs to average
loans of 0.00% in the quarter. Given our higher level of
profitability and prudent balance sheet management, we were able to
continue increasing our tangible book value per share and our
risk-based capital ratios.
“While economic conditions remain uncertain, we will continue to
prioritize prudent risk management and be conservative in new loan
production, while focusing on adding new full banking relationships
with high quality clients that need the multiple products and
services we can provide in banking, wealth management, and other
areas. When economic conditions improve, given the strength of our
balance sheet, including the higher level of liquidity that we now
have, we believe we are well positioned to capitalize on increased
loan demand to grow our balance sheet, increase revenue, and
realize more operating leverage, which should result in further
increases in our level of profitability and additional value being
created for shareholders,” said Mr. Wylie.
| |
For the Three Months Ended |
| |
March 31, |
|
December 31, |
|
March 31, |
| (Dollars in thousands,
except per share data) |
2024 |
|
2023 |
|
2023 |
| Earnings
Summary |
|
|
|
|
|
|
Net interest income |
$ |
16,070 |
|
|
$ |
16,331 |
|
|
$ |
19,573 |
|
| Provision/(release) for credit
losses |
|
72 |
|
|
|
8,493 |
|
|
|
(310 |
) |
| Total non-interest income |
|
7,277 |
|
|
|
6,081 |
|
|
|
5,806 |
|
| Total non-interest
expense |
|
19,696 |
|
|
|
18,276 |
|
|
|
20,528 |
|
| Income/(loss) before income
taxes |
|
3,579 |
|
|
|
(4,357 |
) |
|
|
5,161 |
|
| Income tax
expense/(benefit) |
|
1,064 |
|
|
|
(1,138 |
) |
|
|
1,341 |
|
| Net income/(loss) available to
common shareholders |
|
2,515 |
|
|
|
(3,219 |
) |
|
|
3,820 |
|
| Basic earnings/(loss) per
common share |
|
0.26 |
|
|
|
(0.34 |
) |
|
|
0.40 |
|
| Diluted earnings/(loss) per
common share |
|
0.26 |
|
|
|
(0.34 |
) |
|
|
0.39 |
|
| |
|
|
|
|
|
| Return on average assets
(annualized) |
|
0.35 |
% |
|
|
(0.45 |
)% |
|
|
0.54 |
% |
| Return on average
shareholders' equity (annualized) |
|
4.10 |
|
|
|
(5.17 |
) |
|
|
6.40 |
|
| Return on tangible common
equity (annualized)(1) |
|
4.71 |
|
|
|
(6.11 |
) |
|
|
7.35 |
|
| Net interest margin |
|
2.34 |
|
|
|
2.37 |
|
|
|
2.93 |
|
| Efficiency ratio(1) |
|
83.44 |
|
|
|
80.93 |
|
|
|
78.44 |
|
____________________
(1) Represents a Non-GAAP financial measure. See
“Reconciliations of Non-GAAP Measures” for a reconciliation of our
Non-GAAP measures to the most directly comparable GAAP financial
measure.
Operating Results for the First Quarter
2024
Revenue
Total income before non-interest expense was
$23.3 million for the first quarter of 2024, an increase of
67.2%, compared to $13.9 million for the fourth quarter of
2023. Gross revenue(1) was $23.5 million for the first quarter of
2024, an increase of 4.6%, from $22.5 million for the fourth
quarter of 2023. The increase in Total income before non-interest
expense was primarily driven by a decrease in Provision for credit
losses. Relative to the first quarter of 2023, Total income before
non-interest expense decreased 9.4% from $25.7 million. Gross
revenue decreased 9.8% from $26.1 million for the first quarter of
2023. The decrease was driven by a decrease in Net interest income
as a result of higher Interest expense due to higher deposit costs,
offset partially by higher Interest income.
(1) Represents a Non-GAAP financial measure. See
“Reconciliations of Non-GAAP Measures” for a reconciliation of our
Non-GAAP measures to the most directly comparable GAAP financial
measure.
Net Interest Income
Net interest income for the first quarter of
2024 was $16.1 million, a decrease of 1.6% from $16.3 million
in the fourth quarter of 2023. Relative to the first quarter of
2023, Net interest income decreased 17.9% from $19.6 million.
The decreases were due to higher Interest expense driven primarily
by higher deposit costs, offset partially by higher Interest
income.
Net Interest Margin
Net interest margin for the first quarter of
2024 decreased 3 basis points to 2.34% from 2.37% reported in the
fourth quarter of 2024, primarily due to continued pricing pressure
on interest-bearing deposits and an unfavorable mix shift in the
deposit portfolio.
The yield on interest-earning assets increased 7
basis points to 5.58% in the first quarter of 2024 from 5.51% in
the fourth quarter of 2023 and the cost of interest-bearing
deposits increased 19 basis points to 4.13% in the first quarter of
2024 from 3.94% in the fourth quarter of 2023.
Relative to the first quarter of 2023, net
interest margin decreased from 2.93%, primarily due to pricing
pressure on interest-bearing deposits and an unfavorable mix shift
in the deposit portfolio.
Non-interest Income
Non-interest income for the first quarter of
2024 was $7.3 million compared to $6.1 million in the fourth
quarter of 2023, primarily driven by an increase in Net gain on
mortgage loans and higher Bank fees during the first quarter of
2024, partially offset by lower Risk management and insurance fees,
which tend to be seasonally higher in the fourth quarter.
Relative to the first quarter of 2023,
Non-interest income increased 25.3% from $5.8 million.
Increases were driven by most components of Non-interest income,
including Bank fees, Net gain on loans held for sale, Trust and
investment management fees, Net gain on mortgage loans, and Net
gain on loans accounted for under the fair value option.
Non-interest Expense
Non-interest expense for the first quarter of
2024 was $19.7 million compared to $18.3 million for the
fourth quarter of 2023. The increase was driven by higher Salaries
and employee benefits due to a higher bonus accrual commensurate
with improved earnings in the first quarter of 2024 as compared to
the fourth quarter of 2023 and higher payroll taxes, which tend to
be seasonally higher in the first quarter.
Relative to the first quarter of 2023,
Non-interest expense decreased 4.1% from $20.5 million, driven
primarily by lower Salaries and employee benefits as a result of
staffing reductions in 2023 to better align expenses with lower
revenue. The decrease was partially offset by increased
Professional services and Other operational costs related to higher
legal, audit and other professional fees.
The Company’s efficiency ratio(1) was 83.4% in
the first quarter of 2024, compared with 80.9% in the fourth
quarter of 2023 and 78.4% in the first quarter of 2023.
(1) Represents a Non-GAAP financial measure. See
“Reconciliations of Non-GAAP Measures” for a reconciliation of our
Non-GAAP measures to the most directly comparable GAAP financial
measure.
Income Taxes
The Company recorded Income tax expense of
$1.1 million for the first quarter of 2024, compared to Income
tax benefit of $1.1 million for the fourth quarter of 2023 and
Income tax expense of $1.3 million for the first quarter of
2023.
Loans
Total loans held for investment were
$2.48 billion as of March 31, 2024, a decrease of 2.2%
from $2.54 billion as of December 31, 2023, the decline
was due to a net decrease in Commercial and Industrial and 1-4
Family Residential portfolios. Relative to the first quarter of
2023, Total loans held for investment were flat year over year at
$2.48 billion as of March 31, 2023.
Deposits
Total deposits were $2.53 billion as of
March 31, 2024, which were flat compared to December 31,
2023. Relative to the first quarter of 2023, Total deposits
increased 5.9% from $2.39 billion as of March 31, 2023,
driven primarily by Interest-bearing deposits due to new and
expanded deposit relationships.
Borrowings
Federal Home Loan Bank (“FHLB”) and Federal
Reserve borrowings were $69.5 million as of March 31, 2024, a
decrease of $56.2 million from $125.7 million as of
December 31, 2023. Relative to the first quarter of 2023,
borrowings decreased $191.9 million from $261.4 million
as of March 31, 2023. The change in borrowings from
December 31, 2023 and March 31, 2023 is driven by a
$31.0 million repayment of a Bank Term Funding Program loan
that matured in March 2024. The change when compared to
March 31, 2023 was also driven by a decline in FHLB borrowing
reliance as a result of increased deposits.
Subordinated notes were $52.4 million as of
March 31, 2024, compared to $52.3 million as of
December 31, 2023. Subordinated notes increased
$0.2 million from $52.2 million as of March 31,
2023.
Assets Under Management
Assets Under Management ("AUM") increased by
$388.5 million during the first quarter to $7.14 billion as of
March 31, 2024, compared to $6.75 billion as of
December 31, 2023. This increase was primarily attributable to
an increase in market values throughout the first quarter of 2024,
resulting in an increase in the value of AUM balances. Total AUM
increased by $759.4 million compared to March 31, 2023
from $6.38 billion, which was primarily attributable to
improving market conditions year-over-year resulting in an increase
in the value of AUM.
Credit Quality
Non-performing assets totaled
$46.0 million, or 1.57% of total assets, as of March 31,
2024, compared to $51.1 million, or 1.72% of total assets, as
of December 31, 2023. The decrease is primarily due to the
sale of a non-performing Construction and Development note at a
gain, a large principal payment received on a Cash, securities and
other note offset partially by one new Non-performing Commercial
and Industrial loan. As of March 31, 2023, non-performing
assets totaled $12.5 million, or 0.42% of total assets.
Relative to the first quarter of 2023, the increase in
non-performing assets was due to the net addition of $33.5 million
in loans added throughout 2023.
During the first quarter of 2024 the Company
recorded a provision expense of $0.1 million, compared to a
provision expense of $8.5 million in the fourth quarter of
2023 and a $0.3 million release to its provision in the first
quarter of 2023. The decrease in provision expense recorded in the
first quarter of 2024 compared to fourth quarter of 2023 reflects a
Commercial and Industrial loan where the borrower filed for
bankruptcy resulting in a charge-off of the entire loan balance
during the fourth quarter of 2023.
Capital
As of March 31, 2024, First Western
(“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the
minimum capital levels required by their respective regulators. As
of March 31, 2024, the Bank was classified as “well
capitalized,” as summarized in the following table:
| |
March 31, |
| |
2024 |
| Consolidated
Capital |
|
|
Tier 1 capital to risk-weighted assets |
9.77 |
% |
| Common Equity Tier 1 ("CET1")
to risk-weighted assets |
9.77 |
|
| Total capital to risk-weighted
assets |
13.15 |
|
| Tier 1 capital to average
assets |
7.73 |
|
| |
|
| Bank
Capital |
|
| Tier 1 capital to
risk-weighted assets |
11.00 |
|
| CET1 to risk-weighted
assets |
11.00 |
|
| Total capital to risk-weighted
assets |
12.02 |
|
| Tier 1 capital to average
assets |
8.70 |
|
| |
|
|
Book value per common share increased 0.8% from
$25.33 as of December 31, 2023 to $25.52 as of March 31,
2024. Book value per common share increased 1.2% from $25.22 as of
March 31, 2023.
Tangible book value per common share(1)
increased 0.9% from $22.01 as of December 31, 2023, to $22.21
as of March 31, 2024. Tangible book value per common share
increased 1.5% from $21.85 as of March 31, 2023.
(1) Represents a Non-GAAP financial measure. See
“Reconciliations of Non-GAAP Measures” for a reconciliation of our
Non-GAAP measures to the most directly comparable GAAP financial
measure.
Conference Call, Webcast and Slide
Presentation
The Company will host a conference call and webcast at 10:00
a.m. MT/ 12:00 p.m. ET on Friday, April 19, 2024. Telephone access:
https://register.vevent.com/register/BId5870626426740ff9c585b6c315ea36c.
A slide presentation relating to the fourth
quarter 2024 results will be accessible prior to the scheduled
conference call. The slide presentation and webcast of the
conference call can be accessed on the Events and Presentations
page of the Company’s investor relations website at
https://myfw.gcs-web.com.
About First Western
First Western is a financial services holding
company headquartered in Denver, Colorado, with operations in
Colorado, Arizona, Wyoming, California, and Montana. First Western
and its subsidiaries provide a fully integrated suite of wealth
management services on a private trust bank platform, which
includes a comprehensive selection of deposit, loan, trust, wealth
planning and investment management products and services. First
Western’s common stock is traded on the Nasdaq Global Select Market
under the symbol “MYFW.” For more information, please visit
www.myfw.com.
Non-GAAP Financial Measures
Some of the financial measures included in this
press release are not measures of financial performance recognized
in accordance with generally accepted accounting principles in the
United States (“GAAP”). These non-GAAP financial measures include
“Tangible Common Equity,” “Tangible Common Book Value per Share,”
“Return on Tangible Common Equity,” “Efficiency Ratio,” “Gross
Revenue,” and “Allowance for Credit Losses to Adjusted Loans". The
Company believes these non-GAAP financial measures provide both
management and investors a more complete understanding of the
Company’s financial position and performance. These non-GAAP
financial measures are supplemental and are not a substitute for
any analysis based on GAAP financial measures. Not all companies
use the same calculation of these measures; therefore, this
presentation may not be comparable to other similarly titled
measures as presented by other companies. Reconciliation of
non-GAAP financial measures, to GAAP financial measures are
provided at the end of this press release.
Forward-Looking Statements
Statements in this news release regarding our
expectations and beliefs about our future financial performance and
financial condition, as well as trends in our business and markets
are “forward-looking statements” as defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements often include words such as “believe,” “expect,”
“anticipate,” “intend,” “plan,” “estimate,” “project,” “position,”
“outlook,” or words of similar meaning, or future or conditional
verbs such as “will,” “would,” “should,” “opportunity,” “could,” or
“may.” The forward-looking statements in this news release are
based on current information and on assumptions that we make about
future events and circumstances that are subject to a number of
risks and uncertainties that are often difficult to predict and
beyond our control. As a result of those risks and uncertainties,
our actual financial results in the future could differ, possibly
materially, from those expressed in or implied by the
forward-looking statements contained in this news release and could
cause us to make changes to our future plans. Those risks and
uncertainties include, without limitation, the lack of soundness of
other financial institutions or financial market utilities may
adversely affect the Company; the Company’s ability to engage in
routine funding and other transactions could be adversely affected
by the actions and commercial soundness of other financial
institutions; financial institutions are interrelated because of
trading, clearing, counterparty or other relationships; defaults
by, or even rumors or questions about, one or more financial
institutions or financial market utilities, or the financial
services industry generally, may lead to market-wide liquidity
problems and losses of client, creditor and counterparty confidence
and could lead to losses or defaults by other financial
institutions, or the Company; integration risks and projected cost
savings in connection with acquisitions; the risk of geographic
concentration in Colorado, Arizona, Wyoming, California, and
Montana; the risk of changes in the economy affecting real estate
values and liquidity; the risk in our ability to continue to
originate residential real estate loans and sell such loans; risks
specific to commercial loans and borrowers; the risk of claims and
litigation pertaining to our fiduciary responsibilities; the risk
of competition for investment managers and professionals; the risk
of fluctuation in the value of our investment securities; the risk
of changes in interest rates; and the risk of the adequacy of our
allowance for credit losses and the risk in our ability to maintain
a strong core deposit base or other low-cost funding sources.
Additional information regarding these and other risks and
uncertainties to which our business and future financial
performance are subject is contained in our Annual Report on Form
10-K filed with the U.S. Securities and Exchange Commission (“SEC”)
on March 15, 2024 (“Form 10-K”), and other documents we file with
the SEC from time to time. We urge readers of this news release to
review the “Risk Factors” section our Form 10-K and any updates to
those risk factors set forth in our subsequent Quarterly Reports on
Form 10-Q, Current Reports on Form 8-K, and our other filings with
the SEC. Also, our actual financial results in the future may
differ from those currently expected due to additional risks and
uncertainties of which we are not currently aware or which we do
not currently view as, but in the future may become, material to
our business or operating results. Due to these and other possible
uncertainties and risks, readers are cautioned not to place undue
reliance on the forward-looking statements contained in this news
release, which speak only as of today’s date, or to make
predictions based solely on historical financial performance. Any
forward-looking statement speaks only as of the date on which it is
made, and we do not undertake any obligation to update or review
any forward-looking statement, whether as a result of new
information, future developments or otherwise, except as required
by law.
Contacts:Financial Profiles,
Inc.Tony Rossi310-622-8221MYFW@finprofiles.comIR@myfw.com
|
First Western Financial, Inc. |
|
Condensed ConsolidatedStatements of Income
(unaudited) |
| |
|
| |
Three Months Ended |
| |
March 31, |
|
December 31, |
|
March 31, |
| (Dollars in thousands,
except per share amounts) |
2024 |
|
2023 |
|
2023 |
| Interest and dividend
income: |
|
|
|
|
|
|
Loans, including fees |
$ |
35,139 |
|
|
$ |
35,625 |
|
|
$ |
32,080 |
|
|
Loans accounted for under the fair value option |
|
209 |
|
|
|
257 |
|
|
|
427 |
|
|
Investment securities |
|
603 |
|
|
|
600 |
|
|
|
629 |
|
|
Interest-bearing deposits in other financial institutions |
|
2,352 |
|
|
|
1,350 |
|
|
|
1,403 |
|
|
Dividends, restricted stock |
|
95 |
|
|
|
161 |
|
|
|
173 |
|
|
Total interest and dividend income |
|
38,398 |
|
|
|
37,993 |
|
|
|
34,712 |
|
| |
|
|
|
|
|
| Interest expense: |
|
|
|
|
|
|
Deposits |
|
20,622 |
|
|
|
19,037 |
|
|
|
13,092 |
|
|
Other borrowed funds |
|
1,706 |
|
|
|
2,625 |
|
|
|
2,047 |
|
|
Total interest expense |
|
22,328 |
|
|
|
21,662 |
|
|
|
15,139 |
|
| Net interest income |
|
16,070 |
|
|
|
16,331 |
|
|
|
19,573 |
|
|
Less: provision/(release) for credit losses |
|
72 |
|
|
|
8,493 |
|
|
|
(310 |
) |
| Net interest income, after
provision/(release) for credit losses |
|
15,998 |
|
|
|
7,838 |
|
|
|
19,883 |
|
| |
|
|
|
|
|
| Non-interest income: |
|
|
|
|
|
|
Trust and investment management fees |
|
4,930 |
|
|
|
4,705 |
|
|
|
4,635 |
|
|
Net gain on mortgage loans |
|
1,264 |
|
|
|
379 |
|
|
|
1,019 |
|
|
Net gain/(loss) on loans held for sale |
|
117 |
|
|
|
— |
|
|
|
(178 |
) |
|
Bank fees |
|
891 |
|
|
|
412 |
|
|
|
592 |
|
|
Risk management and insurance fees |
|
49 |
|
|
|
544 |
|
|
|
127 |
|
|
Income on company-owned life insurance |
|
105 |
|
|
|
101 |
|
|
|
90 |
|
|
Net loss on loans accounted for under the fair value option |
|
(302 |
) |
|
|
(91 |
) |
|
|
(543 |
) |
|
Unrealized (loss)/gain recognized on equity securities |
|
(6 |
) |
|
|
(2 |
) |
|
|
10 |
|
|
Other |
|
229 |
|
|
|
33 |
|
|
|
54 |
|
|
Total non-interest income |
|
7,277 |
|
|
|
6,081 |
|
|
|
5,806 |
|
|
Total income before non-interest expense |
|
23,275 |
|
|
|
13,919 |
|
|
|
25,689 |
|
| |
|
|
|
|
|
| Non-interest expense: |
|
|
|
|
|
|
Salaries and employee benefits |
|
11,267 |
|
|
|
9,988 |
|
|
|
13,098 |
|
|
Occupancy and equipment |
|
1,976 |
|
|
|
1,937 |
|
|
|
1,914 |
|
|
Professional services |
|
2,411 |
|
|
|
1,990 |
|
|
|
1,923 |
|
|
Technology and information systems |
|
1,010 |
|
|
|
928 |
|
|
|
832 |
|
|
Data processing |
|
948 |
|
|
|
1,189 |
|
|
|
1,139 |
|
|
Marketing |
|
194 |
|
|
|
415 |
|
|
|
391 |
|
|
Amortization of other intangible assets |
|
57 |
|
|
|
62 |
|
|
|
64 |
|
|
Other |
|
1,833 |
|
|
|
1,767 |
|
|
|
1,167 |
|
|
Total non-interest expense |
|
19,696 |
|
|
|
18,276 |
|
|
|
20,528 |
|
| Income/(loss) before income
taxes |
|
3,579 |
|
|
|
(4,357 |
) |
|
|
5,161 |
|
|
Income tax (benefit)/expense |
|
1,064 |
|
|
|
(1,138 |
) |
|
|
1,341 |
|
| Net income/(loss) available to
common shareholders |
$ |
2,515 |
|
|
$ |
(3,219 |
) |
|
$ |
3,820 |
|
| Earnings/(loss) per common
share: |
|
|
|
|
|
|
Basic |
$ |
0.26 |
|
|
$ |
(0.34 |
) |
|
$ |
0.40 |
|
|
Diluted |
|
0.26 |
|
|
|
(0.34 |
) |
|
|
0.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| First
Western Financial, Inc. |
|
CondensedConsolidatedBalance
Sheets (unaudited) |
| |
|
|
|
|
|
| |
March 31, |
|
December 31, |
|
March 31, |
| (Dollars in
thousands) |
2024 |
|
2023 |
|
2023 |
| Assets |
|
|
|
|
|
| Cash and cash
equivalents: |
|
|
|
|
|
|
Cash and due from banks |
$ |
8,136 |
|
|
$ |
7,284 |
|
|
$ |
6,920 |
|
|
Interest-bearing deposits in other financial institutions |
|
249,753 |
|
|
|
247,158 |
|
|
|
288,147 |
|
|
Total cash and cash equivalents |
|
257,889 |
|
|
|
254,442 |
|
|
|
295,067 |
|
| |
|
|
|
|
|
| Held-to-maturity securities
(fair value of $64,908, $66,617 and $73,570, respectively), net of
allowance for credit losses of $71 |
|
72,303 |
|
|
|
74,102 |
|
|
|
79,565 |
|
| Correspondent bank stock, at
cost |
|
4,461 |
|
|
|
7,155 |
|
|
|
13,222 |
|
| Mortgage loans held for sale,
at fair value |
|
10,470 |
|
|
|
7,254 |
|
|
|
9,873 |
|
| Loans (includes $11,922,
$13,726, and $20,807 measured at fair value, respectively) |
|
2,475,524 |
|
|
|
2,530,915 |
|
|
|
2,469,038 |
|
| Allowance for credit
losses |
|
(24,630 |
) |
|
|
(23,931 |
) |
|
|
(19,843 |
) |
| Loans, net |
|
2,450,894 |
|
|
|
2,506,984 |
|
|
|
2,449,195 |
|
| Premises and equipment,
net |
|
24,869 |
|
|
|
25,256 |
|
|
|
25,383 |
|
| Accrued interest
receivable |
|
11,919 |
|
|
|
11,428 |
|
|
|
10,976 |
|
| Accounts receivable |
|
4,980 |
|
|
|
5,095 |
|
|
|
4,713 |
|
| Other receivables |
|
5,254 |
|
|
|
4,467 |
|
|
|
2,396 |
|
| Goodwill and other intangible
assets, net |
|
31,797 |
|
|
|
31,854 |
|
|
|
32,040 |
|
| Deferred tax assets, net |
|
5,695 |
|
|
|
6,407 |
|
|
|
6,792 |
|
| Company-owned life
insurance |
|
16,635 |
|
|
|
16,530 |
|
|
|
16,242 |
|
| Other assets |
|
35,051 |
|
|
|
24,488 |
|
|
|
23,043 |
|
|
Total assets |
$ |
2,932,217 |
|
|
$ |
2,975,462 |
|
|
$ |
2,968,507 |
|
| |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
Noninterest-bearing |
$ |
434,236 |
|
|
$ |
482,579 |
|
|
$ |
545,064 |
|
|
Interest-bearing |
|
2,097,734 |
|
|
|
2,046,460 |
|
|
|
1,846,863 |
|
|
Total deposits |
|
2,531,970 |
|
|
|
2,529,039 |
|
|
|
2,391,927 |
|
| Borrowings: |
|
|
|
|
|
|
Federal Home Loan Bank and Federal Reserve borrowings |
|
69,484 |
|
|
|
125,711 |
|
|
|
261,385 |
|
|
Subordinated notes |
|
52,397 |
|
|
|
52,340 |
|
|
|
52,167 |
|
| Accrued interest payable |
|
2,415 |
|
|
|
3,793 |
|
|
|
1,786 |
|
| Other liabilities |
|
30,423 |
|
|
|
21,841 |
|
|
|
21,420 |
|
|
Total liabilities |
|
2,686,689 |
|
|
|
2,732,724 |
|
|
|
2,728,685 |
|
| |
|
|
|
|
|
| Shareholders’
Equity |
|
|
|
|
|
|
Total shareholders’ equity |
|
245,528 |
|
|
|
242,738 |
|
|
|
239,822 |
|
|
Total liabilities and shareholders’ equity |
$ |
2,932,217 |
|
|
$ |
2,975,462 |
|
|
$ |
2,968,507 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| First
Western Financial, Inc. |
| Consolidated
Financial Summary (unaudited) |
| |
|
|
|
|
|
| |
March 31, |
|
December 31, |
|
March 31, |
| (Dollars in
thousands) |
2024 |
|
2023 |
|
2023 |
| Loan
Portfolio |
|
|
|
|
|
|
Cash, Securities, and Other(1) |
$ |
151,178 |
|
|
$ |
140,053 |
|
|
$ |
157,308 |
|
| Consumer and Other |
|
18,556 |
|
|
|
27,446 |
|
|
|
22,183 |
|
| Construction and
Development |
|
333,284 |
|
|
|
347,515 |
|
|
|
283,999 |
|
| 1-4 Family Residential |
|
910,129 |
|
|
|
925,984 |
|
|
|
889,782 |
|
| Non-Owner Occupied CRE |
|
562,862 |
|
|
|
546,966 |
|
|
|
536,679 |
|
| Owner Occupied CRE |
|
194,338 |
|
|
|
197,205 |
|
|
|
223,449 |
|
| Commercial and Industrial |
|
297,573 |
|
|
|
336,842 |
|
|
|
340,632 |
|
|
Total |
|
2,467,920 |
|
|
|
2,522,011 |
|
|
|
2,454,032 |
|
| Loans accounted for under the
fair value option |
|
12,276 |
|
|
|
14,129 |
|
|
|
21,052 |
|
|
Total loans held for investment |
|
2,480,196 |
|
|
|
2,536,140 |
|
|
|
2,475,084 |
|
| Deferred (fees) costs and
unamortized premiums/(unaccreted discounts), net(2) |
|
(4,672 |
) |
|
|
(5,225 |
) |
|
|
(6,046 |
) |
|
Loans (includes $11,922, $13,726, and $20,807 measured at fair
value, respectively) |
$ |
2,475,524 |
|
|
$ |
2,530,915 |
|
|
$ |
2,469,038 |
|
| Mortgage loans held for
sale |
|
10,470 |
|
|
|
7,254 |
|
|
|
9,873 |
|
| |
|
|
|
|
|
| Deposit
Portfolio |
|
|
|
|
|
| Money market deposit
accounts |
$ |
1,503,598 |
|
|
$ |
1,386,149 |
|
|
$ |
1,277,988 |
|
| Time deposits |
|
442,834 |
|
|
|
496,452 |
|
|
|
354,545 |
|
| Negotiable order of withdrawal
accounts |
|
132,415 |
|
|
|
147,488 |
|
|
|
192,011 |
|
| Savings accounts |
|
18,887 |
|
|
|
16,371 |
|
|
|
22,319 |
|
|
Total interest-bearing deposits |
|
2,097,734 |
|
|
|
2,046,460 |
|
|
|
1,846,863 |
|
| Noninterest-bearing
accounts |
|
434,236 |
|
|
|
482,579 |
|
|
|
545,064 |
|
|
Total deposits |
$ |
2,531,970 |
|
|
$ |
2,529,039 |
|
|
$ |
2,391,927 |
|
____________________(1) Includes PPP loans of $3.8 million
as of March 31, 2024, $4.3 million as of
December 31, 2023, and $6.1 million as of March 31,
2023.(2) Includes fair value adjustments on loans held for
investment accounted for under the fair value option.
|
First Western Financial, Inc. |
|
Consolidated Financial Summary (unaudited)
(continued) |
| |
|
| |
As of or for the Three Months Ended |
| |
March 31, |
|
December 31, |
|
March 31, |
| (Dollars in
thousands) |
2024 |
|
2023 |
|
2023 |
| Average Balance
Sheets |
|
|
|
|
|
| Assets |
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
Interest-bearing deposits in other financial institutions |
$ |
177,523 |
|
|
$ |
104,789 |
|
|
$ |
127,608 |
|
|
Investment securities |
|
74,666 |
|
|
|
76,331 |
|
|
|
82,106 |
|
|
Correspondent bank stock |
|
4,451 |
|
|
|
7,576 |
|
|
|
9,592 |
|
|
Loans |
|
2,490,300 |
|
|
|
2,521,532 |
|
|
|
2,456,922 |
|
|
Mortgage loans held for sale |
|
6,752 |
|
|
|
9,915 |
|
|
|
7,521 |
|
|
Loans held at fair value |
|
13,134 |
|
|
|
14,755 |
|
|
|
22,722 |
|
|
Total interest-earning assets |
|
2,766,826 |
|
|
|
2,734,898 |
|
|
|
2,706,471 |
|
|
Allowance for credit losses |
|
(23,974 |
) |
|
|
(23,308 |
) |
|
|
(20,325 |
) |
|
Noninterest-earning assets |
|
124,144 |
|
|
|
126,132 |
|
|
|
125,201 |
|
|
Total assets |
$ |
2,866,996 |
|
|
$ |
2,837,722 |
|
|
$ |
2,811,347 |
|
| |
|
|
|
|
|
| Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
Interest-bearing deposits |
$ |
2,008,246 |
|
|
$ |
1,914,856 |
|
|
$ |
1,805,994 |
|
|
FHLB and Federal Reserve borrowings |
|
92,195 |
|
|
|
139,316 |
|
|
|
142,642 |
|
|
Subordinated notes |
|
52,360 |
|
|
|
52,299 |
|
|
|
52,135 |
|
|
Total interest-bearing liabilities |
|
2,152,801 |
|
|
|
2,106,471 |
|
|
|
2,000,771 |
|
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
Noninterest-bearing deposits |
|
446,457 |
|
|
|
456,787 |
|
|
|
545,670 |
|
|
Other liabilities |
|
22,250 |
|
|
|
25,387 |
|
|
|
26,206 |
|
|
Total noninterest-bearing liabilities |
|
468,707 |
|
|
|
482,174 |
|
|
|
571,876 |
|
|
Total shareholders’ equity |
|
245,488 |
|
|
|
249,077 |
|
|
|
238,700 |
|
|
Total liabilities and shareholders’ equity |
$ |
2,866,996 |
|
|
$ |
2,837,722 |
|
|
$ |
2,811,347 |
|
| |
|
|
|
|
|
| Yields/Cost of funds
(annualized) |
|
|
|
|
|
|
Interest-bearing deposits in other financial institutions |
|
5.33 |
% |
|
|
5.11 |
% |
|
|
4.46 |
% |
|
Investment securities |
|
3.25 |
|
|
|
3.12 |
|
|
|
3.11 |
|
|
Correspondent bank stock |
|
8.58 |
|
|
|
8.43 |
|
|
|
7.31 |
|
|
Loans |
|
5.66 |
|
|
|
5.58 |
|
|
|
5.28 |
|
|
Loan held at fair value |
|
6.40 |
|
|
|
6.91 |
|
|
|
7.62 |
|
|
Mortgage loans held for sale |
|
6.79 |
|
|
|
6.60 |
|
|
|
6.04 |
|
|
Total interest-earning assets |
|
5.58 |
|
|
|
5.51 |
|
|
|
5.20 |
|
|
Interest-bearing deposits |
|
4.13 |
|
|
|
3.94 |
|
|
|
2.94 |
|
|
Total deposits |
|
3.38 |
|
|
|
3.18 |
|
|
|
2.26 |
|
|
FHLB and Federal Reserve borrowings |
|
4.23 |
|
|
|
5.36 |
|
|
|
3.89 |
|
|
Subordinated notes |
|
5.66 |
|
|
|
5.63 |
|
|
|
5.38 |
|
|
Total interest-bearing liabilities |
|
4.17 |
|
|
|
4.08 |
|
|
|
3.07 |
|
|
Net interest margin |
|
2.34 |
|
|
|
2.37 |
|
|
|
2.93 |
|
|
Net interest rate spread |
|
1.41 |
|
|
|
1.43 |
|
|
|
2.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Western Financial, Inc. |
|
Consolidated Financial Summary (unaudited)
(continued) |
| |
|
| |
As of or for the Three Months Ended |
| |
March 31, |
|
December 31, |
|
March 31, |
| (Dollars in thousands,
except share and per share amounts) |
2024 |
|
2023 |
|
2023 |
| Asset
Quality |
|
|
|
|
|
|
Non-performing loans |
$ |
46,044 |
|
|
$ |
51,125 |
|
|
$ |
12,460 |
|
| Non-performing assets |
|
46,044 |
|
|
|
51,125 |
|
|
|
12,460 |
|
| Net charge-offs |
|
— |
|
|
|
8,595 |
|
|
|
5 |
|
| Non-performing loans to total
loans |
|
1.86 |
% |
|
|
2.02 |
% |
|
|
0.50 |
% |
| Non-performing assets to total
assets |
|
1.57 |
|
|
|
1.72 |
|
|
|
0.42 |
|
| Allowance for credit losses to
non-performing loans |
|
53.49 |
|
|
|
46.81 |
|
|
|
159.25 |
|
| Allowance for credit losses to
total loans |
|
1.00 |
|
|
|
0.95 |
|
|
|
0.81 |
|
| Allowance for credit losses to
adjusted loans(1) |
|
1.00 |
|
|
|
0.95 |
|
|
|
0.81 |
|
| Net charge-offs to average
loans |
|
— |
|
|
|
0.34 |
|
|
|
* |
|
| |
|
|
|
|
|
| Assets Under Management |
$ |
7,141,453 |
|
|
$ |
6,752,981 |
|
|
$ |
6,382,036 |
|
| |
|
|
|
|
|
| Market
Data |
|
|
|
|
|
| Book value per share at period
end |
|
25.52 |
|
|
|
25.33 |
|
|
|
25.22 |
|
| Tangible book value per common
share(1) |
|
22.21 |
|
|
|
22.01 |
|
|
|
21.85 |
|
| Weighted average outstanding
shares, basic |
|
9,621,309 |
|
|
|
9,572,582 |
|
|
|
9,503,715 |
|
| Weighted average outstanding
shares, diluted |
|
9,710,764 |
|
|
|
9,572,582 |
|
|
|
9,732,674 |
|
| Shares outstanding at period
end |
|
9,621,309 |
|
|
|
9,581,183 |
|
|
|
9,507,564 |
|
| |
|
|
|
|
|
| Consolidated
Capital |
|
|
|
|
|
| Tier 1 capital to
risk-weighted assets |
|
9.77 |
% |
|
|
9.40 |
% |
|
|
9.28 |
% |
| CET1 to risk-weighted
assets |
|
9.77 |
|
|
|
9.40 |
|
|
|
9.28 |
|
| Total capital to risk-weighted
assets |
|
13.15 |
|
|
|
12.59 |
|
|
|
12.39 |
|
| Tier 1 capital to average
assets |
|
7.73 |
|
|
|
7.77 |
|
|
|
7.75 |
|
| |
|
|
|
|
|
| Bank
Capital |
|
|
|
|
|
| Tier 1 capital to
risk-weighted assets |
|
11.00 |
|
|
|
10.54 |
|
|
|
10.29 |
|
| CET1 to risk-weighted
assets |
|
11.00 |
|
|
|
10.54 |
|
|
|
10.29 |
|
| Total capital to risk-weighted
assets |
|
12.02 |
|
|
|
11.45 |
|
|
|
11.12 |
|
| Tier 1 capital to average
assets |
|
8.70 |
|
|
|
8.71 |
|
|
|
8.59 |
|
____________________(1) Represents a Non-GAAP financial measure.
See “Reconciliation of Non-GAAP Measures” for a reconciliation of
our Non-GAAP measures to the most directly comparable GAAP
financial measure.* Value results in an immaterial amount.
|
First Western Financial, Inc. |
|
Consolidated Financial Summary (unaudited)
(continued) |
| |
|
| Reconciliations of
Non-GAAP Financial Measures |
|
| |
As of or for the Three Months Ended |
| |
March 31, |
|
December 31, |
|
March 31, |
| (Dollars in thousands,
except share and per share amounts) |
2024 |
|
2023 |
|
2023 |
| Tangible
Common |
|
|
|
|
|
|
Total shareholders' equity |
$ |
245,528 |
|
|
$ |
242,738 |
|
|
$ |
239,822 |
|
|
Less: goodwill and other intangibles, net |
|
31,797 |
|
|
|
31,854 |
|
|
|
32,040 |
|
| Tangible common equity |
$ |
213,731 |
|
|
$ |
210,884 |
|
|
$ |
207,782 |
|
| |
|
|
|
|
|
| Common shares outstanding, end
of period |
|
9,621,309 |
|
|
|
9,581,183 |
|
|
|
9,507,564 |
|
| Tangible common book value per
share |
$ |
22.21 |
|
|
$ |
22.01 |
|
|
$ |
21.85 |
|
| Net income/(loss) available to
common shareholders |
|
2,515 |
|
|
|
(3,219 |
) |
|
|
3,820 |
|
| Return on tangible common
equity (annualized) |
|
4.71 |
% |
|
|
(6.11 |
)% |
|
|
7.35 |
% |
| |
|
|
|
|
|
|
Efficiency |
|
|
|
|
|
| Non-interest expense |
$ |
19,696 |
|
|
$ |
18,276 |
|
|
$ |
20,528 |
|
|
Less: amortization |
|
57 |
|
|
|
62 |
|
|
|
64 |
|
| Adjusted non-interest
expense |
$ |
19,639 |
|
|
$ |
18,214 |
|
|
$ |
20,464 |
|
| |
|
|
|
|
|
| Total income before
non-interest expense |
$ |
23,275 |
|
|
$ |
13,919 |
|
|
$ |
25,689 |
|
|
Less: unrealized (loss)/gain recognized on equity securities |
|
(6 |
) |
|
|
(2 |
) |
|
|
10 |
|
|
Less: net loss on loans accounted for under the fair value
option |
|
(302 |
) |
|
|
(91 |
) |
|
|
(543 |
) |
|
Less: net gain/(loss) on loans held for sale at fair value |
|
117 |
|
|
|
— |
|
|
|
(178 |
) |
|
Plus: provision/(release) for credit losses |
|
72 |
|
|
|
8,493 |
|
|
|
(310 |
) |
| Gross revenue |
$ |
23,538 |
|
|
$ |
22,505 |
|
|
$ |
26,090 |
|
| Efficiency ratio |
|
83.44 |
% |
|
|
80.93 |
% |
|
|
78.44 |
% |
| |
|
|
|
|
|
| Allowance for Credit
Loss to Adjusted Loans |
|
|
|
|
|
| Total loans held for
investment |
|
2,480,196 |
|
|
|
2,536,140 |
|
|
|
2,475,084 |
|
|
Less: PPP loans |
|
3,779 |
|
|
|
4,343 |
|
|
|
6,100 |
|
|
Less: loans accounted for under fair value |
|
12,276 |
|
|
|
14,129 |
|
|
|
21,052 |
|
| Adjusted loans |
$ |
2,464,141 |
|
|
$ |
2,517,668 |
|
|
$ |
2,447,932 |
|
| |
|
|
|
|
|
| Allowance for credit
losses |
$ |
24,630 |
|
|
$ |
23,931 |
|
|
$ |
19,843 |
|
| Allowance for credit losses to
adjusted loans |
|
1.00 |
% |
|
|
0.95 |
% |
|
|
0.81 |
% |
Grafico Azioni First Western Finanical (NASDAQ:MYFW)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni First Western Finanical (NASDAQ:MYFW)
Storico
Da Gen 2024 a Gen 2025
