First Western Financial, Inc. · NASDAQ:MYFW
First Western Financial — Q4 2024 Earnings Presentation
18 slides from First Western Financial's earnings presentation, Jan 24, 2025
Slide 1: Fourth Quarter 2024 Conference Call
Fourth Quarter 2024 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 4Q24
Overview of 4Q24 • Net income available to common shareholders of $2.7 million or $0.28 per diluted share • Net interest income after provision for credit losses improved to $17.9 million compared to prior quarter of $15.1 million 4Q24 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 $2.7 million, or $0.28 diluted earnings per share, in 4Q24 • Provision for credit losses decreased $1.5 million in 4Q24 • Tangible book value per share(1) increased 1.6% to $22.83 Net Income Available to Common Shareh
Slide 5: Loan Portfolio
Loan Portfolio Loan Portfolio Details Loan Production & Loan Payoffs ($ in millions) • Total loans held for investment increased $41.7 million from prior $200 quarter, reversing our five quarter average loan balance decline $153.8 $150 • Loan growth driven by higher level of new loan production and
Slide 6: Total Deposits
Total Deposits • Total average deposits increased 4.0% from $2.40 billion in 3Q24 to $2.50 billion in 4Q24. The increase was driven by average interest-bearing and noninterest-bearing growth • Total deposits increased 0.4% from $2.50 billion in 3Q24 to $2.51 billion in 4Q24 • Noninterest-bearing dep
Slide 7: Trust and Investment Management
Trust and Investment Management • Total assets under management decreased 1.9% during the quarter to $7.3 billion and increased 8.4% from 4Q23 • The decrease in AUM from 3Q24 was primarily attributed to net withdrawals and lower market values at the end of the fourth quarter of 2024 Total Assets Und
Slide 8: Gross Revenue
Gross Revenue • Gross revenue(1) increased 4.8% from prior quarter • Net interest income increased 8.3% from prior quarter primarily driven by NIM expansion and growth in interest-earning assets • Non-interest income declined $0.5 million driven by lower net mortgage gain and a write-down on one loa
Slide 9: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin • Net interest income increased $1.3 million, or 8.3%, from $15.6 million in 3Q24 to $16.9 million, primarily driven by an increase in interest-earnings assets and a 13 basis point increase in net interest margin • Net interest margin increased 13 basis po
Slide 10: Non-Interest Income
Non-Interest Income • Non-interest income decreased $0.5 million to $6.5 million from the prior quarter driven by a decrease in Net gain on mortgage loans and a write-down on one loan held for sale, offset partially by an increase in Risk management and insurance fees • Record quarter of Risk manage
Slide 11: Non-Interest Expense and Efficiency Ratio
Non-Interest Expense and Efficiency Ratio • Non-interest expense increased to $20.4 million from $19.4 million in the third quarter, primarily driven driven by a $1.1 million write-down on OREO driven by updated appraisals received during the quarter, partially offset by decreases in Salaries and em
Slide 12: Asset Quality
Asset Quality • NPAs decreased $3.1 million to $49.0 million due to pay downs, the migration of one non-performing loan into performing, and the write-down of OREO • NPLs decreased $1.9 million to $13.1 million due to pay downs and the migration of one non-performing loan into performing • NPA/Total
Slide 13: 2025 Outlook and Priorities
2025 Outlook and Priorities • 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 talen
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 $210,884 $213,731 $215,134 $217,147 $220,695 $220,000 $208,760 $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 $2
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation Consolidated Efficiency Ratio For the Three Months Ended, (Dollars in thousands) December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Non-interest expense $ 18,276 $ 19,696 $ 19,001 $ 19,368 $ 20,427 Less: OREO expenses and write-downs — — 29 35
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation Wealth Management Gross Revenue For the Three Months Ended, September 30, (Dollars in thousands) December 31, 2023 March 31, 2024 June 30, 2024 December 31, 2024 2024 Total income before non-interest expense $ 13,362 $ 21,890 $ 18,242 $ 20,296 $ 23,540 Less: unrealized (loss)
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation Pre-tax, Pre-Provision Net Income For the Three Months Ended, (Dollars in thousands) December 31, 2023 September 30, 2024 December 31, 2024 (Loss)/Income before income taxes $ (4,357) $ 2,671 $ 3,914 Plus: provision for (release of) credit losses 8,493 501 (974) Pre-tax, pre-
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