First Western Financial, Inc. · NASDAQ:MYFW
First Western Financial — Shareholder Meeting (June 2019)
19 slides from First Western Financial's shareholder meeting presentation, Jun 5, 2019
Slide 1: 2019 Annual Meeting of Shareholders
First Western Financial, Inc. The First, Western-Based Private Trust Bank 2019 Annual Meeting of Shareholders
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’s managem
Slide 3: 2018 Overview
2018 Overview 3 .. Revenue growth driven by increases in both net interest income and non-interest income .. Improving earnings power .. Delivered significant improvement in profitability during second half of 2018 .. Strengthened capital position .. Completed initial public offering, raising net pr
Slide 4: Emerging From a Cycle of Capital Constraint
$110 $159 $327 $433 $478 $525 $509 $485 $533 $610 $673 $814 $894 $931 $102 $147 $270 $407 $472 $530 $596 $561 $589 $710 $754 $816 $938 $978 $1,256 $1,378 $2,133 $3,057 $4,119 $4,042 $3,952 $4,523 $4,842 $4,744 $4,926 $5,374 $5,235 $5,781 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $0 $200 $4
Slide 5: Key Financial Trends
Ww Figstwestern Key Financial Trends
Slide 6: Net Income Available to Common Shareholders and Earnings per Share
$0.11 $0.08 $0.19 $0.22 $0.21 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Net Income Available to Common Shareholders and Earnings per Share 6 Net Income Available to Common Shareholders .. Continued execution on embedded growth drivers producing consistent level of higher earnings .. Growth in revenue
Slide 7: Pre-Tax, Pre-Provision Income
Pre-Tax, Pre-Provision Income(1) 7 (1) See Non-GAAP reconciliation $486 $4,774 $4,556 $5,795 $7,602 December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 December 31, 2018 2014-2018 Pre-Tax, Pre-Provision Income(1) ($000s) $1,366 $1,385 $2,250 $2,601 $2,345 March 31, 2018 June 30,
Slide 8: Loan Portfolio
$831 $862 $880 $893 $929 $908 $950 1Q18 2Q18 3Q18 4Q18 1Q19 4Q18 1Q19 HFI HFS Average Period End Loan Portfolio 8 Loan Portfolio Composition(1) .. Total loan growth of 9.9% in 2018 .. Loan growth accelerating with annualized growth of 17.1% in 4Q18 and 16.7% in 1Q19 .. Positive trends in loan produc
Slide 9: Total Deposits
$810 $838 $862 $880 $981 $938 $978 1Q18 2Q18 3Q18 4Q18 1Q19 4Q18 1Q19 Average Period End Total Deposits 9 Deposit Portfolio Composition .. Total deposits increased 14.9% in 2018 .. Deposit growth accelerating with annualized growth of 26.9% in 4Q18 and 17.2% in 1Q19 .. Inflows of trust and large cli
Slide 10: Trust and Investment Management
Trust and Investment Management .. Total assets under management declined during 2018 due to significant drop in U.S. equity market at the end of the year .. Growth has resumed in 2019 due to stronger equity market performance and inflows of new assets $5,358 $5,416 $5,626 $5,235 $5,781 Q1 2018 Q2 2
Slide 11: Non-Interest Expense and Efficiency Ratio
Non-Interest Expense and Efficiency Ratio 11 Total Non-Interest Expense .. Expense reductions drove steady improvement in efficiency ratio throughout 2018 .. 1Q19 non-interest expense increased 8.2%, primarily due to higher bonus accrual and payroll tax reset .. 1Q19 year-over-year improvement in ef
Slide 12: Asset Quality
Asset Quality 12 Non-Performing Assets/Total Assets .. Increase in NPAs primarily driven by one relationship with no loss expected .. Other credit trends are stable to positive .. 10 consecutive quarters of no net charge-offs Net Charge-Offs/Average Loans 0.0% 0.0% 0.0% 0.0% 0.0% Q1 2018 Q2 2018 Q3
Slide 13: Outlook
Ww Figstwestern Outlook
Slide 14: Strong Foundation for Long-Term Growth
Strong Foundation for Long-Term Growth 14 Investments in Revenue Generation Made in 2017 - 2018 .. Experienced executive leadership added: Colorado/Wyoming Profit Center President Chief Credit Officer Chief Investment Officer Senior Trust Officer .. Business Development Officers added in ful
Slide 15: Progress in 2019
Progress in 2019 15 .. Business development platform gaining traction, driving increases in gross revenue .. Loan production continues to be well diversified .. Lower mortgage rates, seasonal factors driving increase in volumes .. Continued YoY improvement in operating efficiencies despite further i
Slide 16: The Roadmap to Shareholder Value Creation
16 The Roadmap to Shareholder Value Creation Short-Term Goals Long-Term Goals Our mission is to be the BPBFWWMC – Best Private Bank for the Western Wealth Management Client We believe First Western can be a unique, niche focused regional powerhouse with high fee income and consistent strong earnings
Slide 17: Appendix
Ww Figstwestern Appendix
Slide 18: Non-GAAP Reconciliation: Pre-tax, Pre-provision Income
18 Non-GAAP Reconciliation Consolidated Pre-tax, Pre-provision Income For the Three Months Ended(1), (Dollars in thousands) March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 March 31, 2019 Net Income, as reported $1,186 $1,048 $1,689 $1,724 $1,627 Provision for (recovery of) loan los
Slide 19: Non-GAAP Reconciliation: Efficiency Ratio
19 Non-GAAP Reconciliation Consolidated Efficiency Ratio For the Three Months Ended, (Dollars in thousands) March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 March 31, 2019 Non-interest expense $13,286 $13,084 $12,176 $11,649 $12,602 Less: Amortization 230 230 208 163 173 Adjusted no
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