First Western Financial, Inc. · NASDAQ:MYFW
First Western Financial — Q3 2024 Earnings Presentation
18 slides from First Western Financial's earnings presentation, Oct 25, 2024
Slide 1: Third Quarter 2024 Conference Call
Third 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 3Q24
Overview of 3Q24 • Net income available to common shareholders of $2.1 million or $0.22 per diluted share • Net interest income after provision for credit losses improved to $15.1 million compared to prior quarter of $13.4 million 3Q24 Earnings • Positive trends in a number of key areas resulted in
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 $2.1 million, or $0.22 diluted earnings per share, in 3Q24 • Provision for credit losses decreased $1.8 million in 3Q24 • Tangible book value per share(1) increased approximately 0.9% to $22.47 Net Income Available to
Slide 5: Loan Portfolio
Loan Portfolio Loan Portfolio Details Loan Production & Loan Payoffs ($ in millions) • Total loans held for investment decreased $73.4 million from $200 prior quarter $153.8 $150 $122.3 • Decrease due to new production more than offset by payoffs $101.0 $102.2 $100.3 $100.0 and decline in NPLs $100
Slide 6: Total Deposits
Total Deposits • Total deposits increased 3.7% from $2.41 billion in 2Q24 to $2.50 billion in 3Q24 • Noninterest-bearing deposits increased 19% from $397 million in 2Q24 to $474 million in 3Q24 • Interest-bearing deposits increased 0.8% from $2.01 billion in 2Q24 to $2.03 billion in 3Q24 primarily d
Slide 7: Trust and Investment Management
Trust and Investment Management • Total assets under management increased 6.5% during the quarter to $7.5 billion and increased 16.7% from 3Q23 • The increase in AUM during the quarter and from 3Q24 was primarily attributed to improving market conditions resulting in an increase in the value of AUM
Slide 8: Gross Revenue
Gross Revenue (1) • Gross revenue decreased 1.7% from prior quarter • Net interest income decreased 1.3% from prior quarter primarily driven by an increase in interest expense due to an increase in interest-bearing deposits and partially due to having one additional day in the quarter • Non-interest
Slide 9: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin • Net interest income of $15.6 million decreased $0.2 million, or 1.3%, from $15.8 million in 2Q24, primarily driven by an increase in interest expense due to an increase in interest-bearing deposits and partially due to having one additional day in the qu
Slide 10: Non-Interest Income
Non-Interest Income • Non-interest income remained flat at $7.0 million from prior quarter and increased 14% year over year • Activity throughout the quarter included an increase in Risk management and insurance fees, offset by decreased Net gain on mortgage loans • Held for sale mortgage margin pre
Slide 11: Non-Interest Expense and Efficiency Ratio
Non-Interest Expense and Efficiency Ratio • Non-interest expense increased to $19.4 million from $19.0 million in the second quarter, but was in line with the first half of the year • The increase was primarily driven by increases in Salaries and employee benefits due to increased front office headc
Slide 12: Asset Quality
Asset Quality • NPAs increased to $52.1 million due to the addition of a non-performing loan and foreclosed property, partially offset by non-performing loan pay downs, charge-offs, and the sale of a non-performing loan • NPLs decreased $22.9 million driven by the migration of one loan relationship
Slide 13: Near-Term Outlook
Near-Term Outlook • First Western's markets continue to perform well and the strength of our balance sheet and franchise provides opportunities to capitalize on market disruption and challenges being faced by competing banks to add new clients and banking talent • Prudent risk management and conserv
Slide 14: Appendix
Appendix 14 W FIRSTWesternTRUST
Slide 15: Capital and Liquidity Overview
Capital and Liquidity Overview Tangible Common Equity / TBV per Share(1) (TCE $ in thousands) $240,000 $213,731 $215,134 $217,147 $220,000 $208,760 $210,884 $200,000 $187,139 $180,000 $160,000 $130,704 $140,000 $120,000 $104,411 $100,000 $80,000 $60,000 $21.99 $22.01 $22.21 $22.27 $22.47 $40,000 $13
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation Consolidated Efficiency Ratio For the Three Months Ended, (Dollars in thousands) September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 Non-interest expense $ 18,314 $ 18,276 $ 19,696 $ 19,001 $ 19,368 Less: amortization 62 62 57 56 57 Adjusted n
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation Wealth Management Gross Revenue For the Three Months Ended, September 30, September 30, (Dollars in thousands) December 31, 2023 March 31, 2024 June 30, 2024 2023 2024 Total income before non-interest expense $ 21,647 $ 13,362 $ 21,890 $ 18,242 $ 20,296 Less: unrealized gain/
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation Pre-tax, Pre-Provision Net Income For the Three Months Ended, (Dollars in thousands) September 30, 2023 June 30, 2024 September 30, 2024 Income before income taxes $ 4,222 $ 1,415 $ 2,671 Plus: provision for credit losses 329 2,334 501 Pre-tax, pre-provision net income $ 4,55
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