First Western Financial, Inc. · NASDAQ:MYFW
First Western Financial — Q1 2022 Earnings Presentation
22 slides from First Western Financial's earnings presentation, Apr 28, 2022
Slide 1: First Quarter 2022 Conference Call
First Quarter 2022 Conference Call
Slide 2: Safe Harbor
Safe Harbor 2 This presentation contains “forward - looking statements” within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended .. These forward - looking statements reflect the current views of First Western
Slide 3: Overview of 1Q22
3 Overview of 1Q22 Payoffs Impact Loan Growth 1Q22 Earnings Increasing Profitability ▪ Teton acquisition having positive impact on profitability prior to realization of most of the cost savings ▪ Larger balance sheet resulted in 27% increase in net interest income from 4Q21 ▪ Significant increases i
Slide 4: Net Income Available to Common Shareholders and Earnings per Share
4 Net Income Available to Common Shareholders and Earnings per Share ▪ Net income of $5.5 million, or $0.57 diluted earnings per share, in 1Q22 ▪ Excluding acquisition - related expenses, adjusted diluted earnings per share (1) of $0.61 in 1Q22 ▪ Strong profitability resulted in 1.8% and 1.9% increa
Slide 5: Wealth Management Segment Earnings
5 Wealth Management Segment Earnings (1) See Non - GAAP reconciliation $0.73 $0.86 $0.79 $0.71 $0.77 $0.99 $1.01 $1.07 $0.75 $0.80 $0.00 $0.50 $1.00 $1.50 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Wealth Management Segment Consolidated ▪ Wealth Management segment earnings reflects contribution of priv
Slide 6: Loan Portfolio
6 Loan Portfolio ▪ Total loans HFI decreased $ 23.0 million from prior quarter due to high level of payoffs and a decrease in PPP loans of $30.1 million ▪ Seasonally lighter loan production in first quarter ▪ Growth in C&I loans partially offset payoffs of construction loans following project comple
Slide 7: Total Deposits
7 Total Deposits ▪ Total deposits increased $66.4 million from end of prior quarter ▪ Continued improvement in deposit mix as growth in noninterest - bearing and low - cost interest - bearing deposits offset decline in time deposits ▪ Strong new client acquisition activity resulted in $92.3 million
Slide 8: Trust and Investment Management
8 Trust and Investment Management ▪ Total assets under management decreased $ 152.5 million from December 31, 2021 to $7.20 billion at March 31, 2022 ▪ The decrease in asset balances was attributable to unfavorable market conditions resulting in a decrease in the value of assets under management bal
Slide 9: Paycheck Protection Program Overview
(1) All numbers represented do not include the impact of taxes (2) The deferred loan origination expenses are recorded in non - interest expenses (Salaries and Benefits) and amortized throug h net interest income (3 ) Includes $ 0.4 million in SBA fee income less $0.1 million of deferred loan origin
Slide 10: Gross Revenue
(1) See Non - GAAP reconciliation Gross Revenue ▪ Gross revenue (1) increased 14.8% from 4Q21 due to higher net interest income ▪ Most areas of non - interest income were consistent with prior quarter with exception of decline in risk management and insurance fees and net gain on equity interests ▪
Slide 11: Net Interest Income and Net Interest Margin
11 Net Interest Income and Net Interest Margin ▪ Net interest income increased 27.1% from 4Q21, primarily due to higher average loan balances ▪ Excluding PPP fees and purchase accretion income, net interest income increased $3.3 million from 4Q21 ▪ Net interest margin, including PPP and purchase acc
Slide 12: Non-Interest Income
12 Non - Interest Income ▪ Non - interest income decreased 9.5% from 4Q21 ▪ Excluding net gain on equity interests in 4Q21, adjusted non - interest income (1) decreased 4.6%, primarily due to lower risk management and insurance fees, which are seasonally higher in Q4 compared to the rest of the fisc
Slide 13: Mortgage Operations
13 Mortgage Operations ▪ Mortgage locks up 4.5% from prior quarter ▪ Refi/Purchase mix of 41% / 59% in 1Q22 compared to 41% / 59% in 4Q21 and 39% / 61% in 3Q21 ▪ Profit margin remained consistent quarter - over - quarter ▪ Non - interest expense down 28.0% in Mortgage segment from 1Q21 $490.8 $319.7
Slide 14: Non-Interest Expense and Efficiency Ratio
14 Non - Interest Expense and Efficiency Ratio ▪ Non - interest expense decreased 5.5% from 4Q21 ▪ 1Q22 included $0.5 million of acquisition - related expense, compared with $3.7 million in 4Q21 ▪ Excluding acquisition - related expense, adjusted non - interest expense (1) increased from 4Q21 primar
Slide 15: Asset Quality
15 Asset Quality ▪ Stable asset quality across the portfolio ▪ Immaterial net charge - offs again in the quarter ▪ $0.2 million provision for loan losses related to growth in total loans, excluding PPP loans, and changes in portfolio mix ▪ Non - performing assets remained consistent at 0.17% of tota
Slide 16: Near-Term Outlook
16 Near - Term Outlook ▪ Growing reputation and larger balance sheet positively impacting ability to attract experienced banking talent and expand business development capabilities across all markets ▪ Loan pipeline continues to build and should lead to higher loan growth over remainder of 2022 ▪ Hi
Slide 17: Appendix
Appendix 7 W Frirstwestern
Slide 18: Capital and Liquidity Overview
18 Capital and Liquidity Overview 11.11% 11.11% 13.81% 7.67% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% Tier 1 Capital to Risk-Weighted Assets CET1 to Risk- Weighted Assets Total Capital to Risk-Weighted Assets Tier 1 Capital to Average Assets Liquidity Funding Sources (as of 3/31/22)
Slide 19: Non-GAAP Reconciliation: Tangible Common Book Value Per Share
19 Non - GAAP Reconciliation Consolidated Tangible Common Book Value Per Share As of the Three Months Ended, (Dollars in thousands) Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2020 Dec. 31 , 2021 Mar. 31 , 2022 Total shareholders' equity $116,875 $127,678 $154,962 $219,041 $223,266 Less: Goodwill and other
Slide 20: Non-GAAP Reconciliation: Gross Revenue
20 Non - GAAP Reconciliation Wealth Management Gross Revenue For the Three Months Ended, (Dollars in thousands) March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 March 31, 2022 Total income before non - interest expense $18,471 $19,782 $20,438 $20,619 $ 24,189 Less: Net gain on equit
Slide 21: Non-GAAP Reconciliation: Adjusted Net Income
21 Non - GAAP Reconciliation Adjusted net income available to common shareholders For the Three Months Ended, (Dollars in thousands, except per share data) March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 March 31, 2022 Net income available to common shareholders $5,999 $6,277 $6,41
Slide 22: Non-GAAP Reconciliation: Adjusted Net Interest Margin
22 Non - GAAP Reconciliation Adjusted net interest margin For the Three Months Ended March 31, 2021 For the Three Months Ended June 30, 2021 For the Three Months Ended September 30, 2021 For the Three Months Ended December 31, 2021 For the Three Months Ended March 31, 2022 (Dollars in thousands) Ave
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