First Western Financial, Inc. · NASDAQ:MYFW
First Western Financial — Q1 2025 Earnings Presentation
18 slides from First Western Financial's earnings presentation, Apr 25, 2025
Slide 1: First Quarter 2025 Conference Call
First Quarter 2025 Conference Call
Slide 2: Safe Harbor
Safe Harbor 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: Overview of 1Q25
Overview of 1Q25 • Net income available to common shareholders of $4.2 million or $0.43 per diluted share • Net interest income improved to $17.5 million compared to prior quarter of $16.9 million 1Q25 Earnings • Positive trends in a number of key areas resulted in improvement in profitability from
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 $4.2 million, or $0.43 diluted earnings per share, in 1Q25 • Tangible book value per share(1) increased 1.6% to $23.18 Net Income Available to Common Shareholders Diluted Earnings per Share $5,000 $0.50 $0.43 $4,185 $
Slide 5: Loan Portfolio
Loan Portfolio Loan Portfolio Details Loan Production & Loan Payoffs ($ in millions) • Total loans held for investment were flat from prior quarter due to $200 offsetting production and loan payoffs $153.8 $150 • Total average loans held for investment increased $21.4 million in the quarter $100.0 $
Slide 6: Total Deposits
Total Deposits • Total deposits increased 0.4% from $2.51 billion in 4Q24 to $2.52 billion in 1Q25 • Noninterest-bearing deposits increased 9.0% from $376 million in 4Q24 to $410 million in 1Q25 primarily due to operating account fluctuations and new client relationships • Interest-bearing deposits
Slide 7: Trust and Investment Management
Trust and Investment Management • Total assets under management decreased 2.0% during the quarter to $7.18 billion and increased 0.5% from 1Q24 • The decrease in AUM from 4Q24 was driven by net withdrawals primarily in fixed fee accounts • Compared to 1Q24, total AUM increased slightly from $7.14 bi
Slide 8: Gross Revenue
Gross Revenue • Gross revenue(1) increased 3.4% from prior quarter • Net interest income increased 3.6% from prior quarter primarily driven by NIM expansion • Non-interest income increased $0.9 million driven by higher net mortgage gain and net gain on the sale of OREO, partially offset by a decreas
Slide 9: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin • Net interest income increased $0.5 million, or 3.6%, from $16.9 million in 4Q24 to $17.5 million, primarily driven by a 16 basis point increase in net interest margin • Net interest margin increased 16 basis points during the quarter from 2.45% in 4Q24 t
Slide 10: Non-Interest Income
Non-Interest Income • Non-interest income increased $0.9 million to $7.3 million from the prior quarter driven by higher net mortgage gain and net gain on the sale of OREO, partially offset by a decrease in insurance fees • Lower mortgage rates and addition of MLOs led to higher level of mortgage pr
Slide 11: Non-Interest Expense and Efficiency Ratio
Non-Interest Expense and Efficiency Ratio • Non-interest expense decreased to $19.4 million from $20.4 million in the fourth quarter of 2024, primarily driven by a one-time $1.1 million OREO write-down recognized in 4Q24 • Non-interest expense decreased $0.3 million from $19.7 million in the first q
Slide 12: Asset Quality
Asset Quality • NPAs decreased $31.8 million to $17.1 million due to the sale of two OREO properties • NPLs decreased $0.3 million to $12.8 million due to the charge-off of a non-performing loan that had previously been held for sale • NPA/Total Assets decreased from 1.68% as of 4Q24 to 0.59% as of
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 • Addition of banking talent over the
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) Consolidated Capital Ratios (as of 03/31/25) Liquidity Funding Sources (as of 03/31/25) ($ in thousands) 14.00% 13.15% Liquidity Reserves: Total Available Cash $ 270,070 12.00% 10.35% 10.35% Unpledged Inves
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation Consolidated Efficiency Ratio For the Three Months Ended, (Dollars in thousands) March 31, 2024 June 30, 2024 September 30, December 31, 2024 March 31, 2025 2024 Non-interest expense $ 19,696 $ 19,001 $ 19,368 $ 20,427 $ 19,361 Less: OREO expenses and write-downs — 29 35 1,22
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation Wealth Management Gross Revenue For the Three Months Ended, September 30, (Dollars in thousands) March 31, 2024 June 30, 2024 December 31, 2024 March 31, 2025 2024 Total income before non-interest expense $ 21,890 $ 18,242 $ 20,296 $ 23,540 $ 23,468 Less: unrealized (loss) ga
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation Pre-tax, Pre-Provision Net Income For the Three Months Ended, (Dollars in thousands) March 31, 2024 December 31, 2024 March 31, 2025 Income before income taxes $ 3,579 $ 3,914 $ 5,357 Plus: provision for (release of) credit losses 72 (974) 80 Pre-tax, pre-provision net income
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