First Western Financial, Inc. · NASDAQ:MYFW
First Western Financial — Shareholder Meeting (June 2023)
21 slides from First Western Financial's shareholder meeting presentation, Jun 16, 2023
Slide 1: 2023 Annual Meeting of Shareholders
2023 Annual Meeting of Shareholders June 21, 2023
Slide 2: Safe Harbor
Safe Harbor 2 This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the current views of First Western Financial
Slide 3: 2022 Review and Highlights
3 2022 Review and Highlights ▪ Continued growth in core earnings despite challenging operating environment and unfavorable conditions for wealth management and mortgage banking businesses ➢ 3.4% increase in Adjusted Pre-Tax, Pre-Provision Income(1) ▪ Increase in core earnings driven by continued org
Slide 4: Strong Franchise Fundamentals
4 Strong Franchise Fundamentals ▪ Well diversified client base with no significant industry or asset class concentrations in deposit base or loan portfolio ▪ Granular deposit base with low average account balances, high level of insured deposits, and no exposure to crypto or VC-related deposits ▪ Ve
Slide 5: Strong Operational and Financial Momentum
$4,556 $5,795 $7,602 $10,854 $38,429 $32,611 $33,733 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 2016 2017 2018 2019 2020 2021 2022 2016-2020 Pre-Tax, Pre-Provision Income(1) ($000s) 5 Strong Operational and Financial Momentum ▪ Robust organic balance sheet growth ▪ Accretive a
Slide 6: Consistent Value Creation
$9.19 $11.14 $11.50 $11.88 $12.38 $12.83 $13.15 $13.39 $14.13 $15.38 $16.44 $17.24 $17.98 $18.85 $19.87 $20.25 $20.65 $21.35 $21.99 $22.41 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 $22.00 $24.00 MYFW TBV/Share 6 Consistent Value Creation (1) See Non-GAAP reconciliation (2) Excludes a $0.56 dec
Slide 7: Driving Profitable Growth
Driving Profitable Growth W FirSTwestern
Slide 8: Success in Expansion and Acquisition Growth
8 Success in Expansion and Acquisition Growth 2006 – 2010 (3) ▪ Boulder, CO ▪ Century City, CA ▪ Scottsdale, AZ 2011 – 2015 (6) ▪ Aspen, CO ▪ DTC/Cherry Hills, CO ▪ Fort Collins, CO ▪ Jackson Hole, WY ▪ Laramie, WY(4) ▪ Phoenix, AZ 2016 – 2020 (4) ▪ Broomfield, CO (2021) ▪ Greenwood Village, CO ▪ Lo
Slide 9: Revenue Growth Strategies
9 Revenue Growth Strategies Expand commercial loan production platform ▪ Building expertise in specific vertical markets, e.g. medical and dental practices ▪ Capitalize on growing reputation to attract additional experienced commercial banking talent Expand into new markets with attractive demograph
Slide 10: Strong Execution on Revenue Growth Strategies
10 Strong Execution on Revenue Growth Strategies ▪ Accelerating business development, office expansion and accretive acquisitions all contributing to the balance sheet growth driving improved operating leverage and higher profitability ▪ M&A strategy continued with acquisition of Teton Financial Ser
Slide 11: Accelerating Business Development Trends
11 Accelerating Business Development Trends Capital raised in July 2018 IPO has allowed for increased business development activities $227.9 $268.2 $225.6 $317.9 $691.7 $561.2 $918.7 $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 $900.0 $1,000.0 2016 2017 2018 2019 2020 2021 2022 $44.0
Slide 12: Increased Scale and Back-Office Streamlining Driving Improved Efficiencies
12 Increased Scale and Back-Office Streamlining Driving Improved Efficiencies 88.2% 85.4% 80.6% 59.8% 66.6% 69.2% 50.0% 60.0% 70.0% 80.0% 90.0% 2017 2018 2019 2020 2021 2022 (1) See Non-GAAP reconciliation Efficiency Ratio(1)
Slide 13: Wealth Management Segment Earnings
13 Wealth Management Segment Earnings (1) See Non-GAAP reconciliation ▪ Wealth Management segment earnings reflects contribution of private banking, commercial banking, and trust and investment management business lines ▪ Growth in private banking, commercial banking, and TIM businesses replacing ea
Slide 14: Creating Additional Shareholder Value
Creating Additional Shareholder Value 14
Slide 15: 2023 Outlook and Priorities
15 2023 Outlook and Priorities • Prudent risk management will remain top priority while economic uncertainty remains, which will impact level of profitability in short term • We expect strength of balance sheet will enable First Western to capitalize on current turmoil in banking industry to add new
Slide 16: Long-Term Goals to Drive Shareholder Value
16 Long-Term Goals to Drive Shareholder Value ▪ Since our pre-2018 IPO status as of year end 2017, we have tripled total loans and total deposits, more than doubled TBV per share, had substantial increases in annual revenue, and demonstrated significant operating leverage. Looking forward we can dri
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations 17
Slide 18: Consolidated Adjusted Pre-tax, Pre-provision Income
18 Non-GAAP Reconciliation Consolidated Adjusted Pre-tax, Pre- provision Income For the Twelve Months Ended December 31, (Dollars in thousands) 2016 2017 2018 2019 2020 2021 2022 Net Income before income tax, as reported $3,571 $5,007 $7,422 $10,192 $33,063 $27,280 $28,828 Plus: Provision for loan l
Slide 19: Consolidated Efficiency Ratio
19 Non-GAAP Reconciliation Consolidated Efficiency Ratio For the Years Ended, (Dollars in thousands) 2016 2017 2018 2019 2020 2021 2022 Non-interest expense $49,823 $49,494 $50,182 $53,806 $59,552 $68,128 $79,106 Less: Amortization 747 784 831 374 14 17 308 Less: Acquisition related expenses - - - -
Slide 20: Consolidated Tangible Common Book Value Per Share
20 Non-GAAP Reconciliation Consolidated Tangible Common Book Value Per Share As of, (Dollars in thousands) Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2022 March 31, 2023 Total shareholders' equity $116,875 $127,678 $154,962 $219,041 $240,864 $239,822 Less: Goodwill and other in
Slide 21: Diluted Pre-Tax Earnings Per Share
21 Non-GAAP Reconciliation Diluted Pre-Tax Earnings Per Share For the Twelve Months ended December 31, (Dollars in thousands) 2018 2019 2020 2021 2022 Non-Mortgage income before income tax $8,664 $6,152 $12,086 $21,378 $31,139 Plus: Acquisition-related expenses - - 684 4,101 1,223 Mortgage income be
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