First Western Financial, Inc. · NASDAQ:MYFW
First Western Financial — Q1 2024 Earnings Presentation
18 slides from First Western Financial's earnings presentation, Apr 19, 2024
Slide 1: First Quarter 2024 Conference Call
First Quarter 2024 Conference Call
Slide 2: Safe Harbor
Safe Harbor Statements in this presentation 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. Forwar
Slide 3: Overview of 1Q24
Overview of 1Q24 • Net income available to common shareholders of $2.5 million, or $0.26 per diluted share 1Q24 Earnings • Pre-tax, pre-provision net income(1) of $3.7 million Continued • Continued improvement in loan-to-deposit ratio Execution on • Higher level of liquidity enabled repayment of hig
Slide 4: Net Income Available to Common Shareholders and Earnings per Share
Net Income Available to Common Shareholders and Earnings per Share • Net income of $2.5 million, or $0.26 diluted earnings per share, in 1Q24 • Tangible book value per share(1) increased approximately 1% to $22.21 Net Income Available to Common Shareholders Diluted Earnings per Share $5,000 $0.50 $3
Slide 5: Loan Portfolio
Loan Portfolio Loan Portfolio Details Loan Production & Loan Payoffs • Total loans held for investment decreased $55.9 million from prior quarter • Decrease due to limited new production that was more than offset by payoffs and a lower level of draws on existing credit lines than previous quarters •
Slide 6: Total Deposits
Total Deposits • Total deposits trending up again in 1Q24, with average balances up 3.5% or 14% annualized over 4Q23 • Success in new business development, with $17 million in new deposit relationships added in 1Q24 • Strongest growth in money market accounts resulting from expanded relationships wi
Slide 7: Trust and Investment Management
Trust and Investment Management • Total assets under management increased $388.5 million from December 31, 2023 to $7.1 billion as of March 31, 2024 • Increase in AUM driven by an increase in market values throughout 1Q24, resulting in a 6% increase compared to 4Q23, and a 12% increase year-over-yea
Slide 8: Gross Revenue
Gross Revenue • Gross revenue(1) increased 4.6% from prior quarter • Net interest income relatively consistent with prior quarter • Non-interest income increased 19.7% from prior quarter 1Q24 Gross Revenue(1) Gross Revenue(1) $35.0 $30.0 $26.1 $24.8 $25.0 $23.1 $22.5 $23.5 $20.0 $15.0 $10.0 $5.0 $—
Slide 9: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin • Net interest income decreased slightly to $16.1 million, or 1.6%, from $16.3 million in 4Q23, due primarily to higher deposit costs • Net interest margin decreased 3 bps to 2.34%. The rate of decline in net interest margin has decelerated over the past f
Slide 10: Non-Interest Income
Non-Interest Income • Non-interest income increased 19.7% from prior quarter • Increase driven by higher Trust and Investment Management fees, Net Gain on Mortgage Loans, and Bank Fees, partially offset by lower Risk Management and Insurance Fees, which are seasonally higher in the fourth quarter ea
Slide 11: Non-Interest Expense and Efficiency Ratio
Non-Interest Expense and Efficiency Ratio • Non-interest expense increased to $19.7 million, primarily due to seasonal impact of higher payroll taxes, higher incentive compensation resulting from improved financial performance, and higher legal costs • Non-interest expense expected to be relatively
Slide 12: Asset Quality
Asset Quality • NPAs decreased $5.1 million due to the sale of a non-performing construction loan at a gain and a paydown on the largest NPL following the sale of one of the properties held as collateral • Remainder of portfolio continues to perform well as indicated by a decline in past due loans d
Slide 13: Near-Term Outlook
Near-Term Outlook • Well positioned to manage through and perform well in any economic scenario that emerges in 2024 • Prudent risk management and conservative underwriting criteria expected to result in modest asset growth in 2024 until economic conditions improve • Deposit gathering will remain a
Slide 14: Appendix
Appendix 14 W FIRSTWesternTRUST
Slide 15: Capital and Liquidity Overview
Capital and Liquidity Overview Tangible Common Equity / TBV per Share(1) Consolidated Capital Ratios (as of 03/31/24) Liquidity Funding Sources (as of 03/31/24) (in thousands) 15.00% 13.15% Liquidity Reserves: Total Available Cash $256,492 9.77% 9.77% Unpledged Investment Securities 25,840 10.00% 7.
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation Consolidated Efficiency Ratio For the Three Months Ended, (Dollars in thousands) March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 Non-interest expense $20,528 $18,519 $18,314 $18,276 $16,696 Less: amortization 64 62 62 62 57 Adjusted non-intere
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation Wealth Management Gross Revenue For the Three Months Ended, (Dollars in thousands) March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 Total income before non-interest expense $24,543 $19,529 $21,647 $13,362 $21,890 Less: unrealized gains/(losses)
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation Pre-tax, pre-provision net income For the Three Months Ended, (Dollars in thousands) March 31, 2023 December 31, 2023 March 31, 2024 Income before income taxes $5,161 $(4,357) $3,579 Plus: provision (release) for credit losses (310) 8,493 72 Pre-tax, pre-provision (release) n
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