First Western Financial, Inc. · NASDAQ:MYFW
First Western Financial — Q4 2019 Earnings Presentation
17 slides from First Western Financial's earnings presentation, Jan 23, 2020
Slide 1: Fourth Quarter 2019 Financial Results
First Western Financial, Inc. The First, Western-Based Private Trust Bank Fourth Quarter 2019 Financial Results
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: Overview of 4Q19
Overview of 4Q19 Positive Trends in Core Deposits and AUM Strong Financial Performance Record Quarter of Loan Production .. Total loan production of $146.1 million, with 4Q19 average total gross loan balance over $1.0 billion ..Gross loans increased 30.8% annualized .. Significant contributions from
Slide 4: Net Income Available to Common Shareholders and Earnings per Share
$0.22 $0.21 $0.30 $0.32 $0.15 $0.33 $- $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 $0.40 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 EPS Adjustments to EPS (1) Net Income Available to Common Shareholders and Earnings per Share 4 Net Income Available to Common Shareholders .. Strong execution delivering co
Slide 5: Loan Portfolio Composition
$893 $929 $966 $990 $1,018 $994 $1,045 4Q18 1Q19 2Q19 3Q19 4Q19 3Q19 4Q19 HFI HFS Average Period End Loan Portfolio 5 Loan Portfolio Composition(1) .. Gross loans held-for-investment (HFI) increased 30.8% annualized .. Total new HFI loan production of $146.1 million in 4Q19 vs $55.4 million in 3Q19
Slide 6: Deposit Portfolio Composition
$880 $981 $967 $1,042 $1,092 $1,109 $1,087 4Q18 1Q19 2Q19 3Q19 4Q19 3Q19 4Q19 Average Period End Total Deposits 6 Deposit Portfolio Composition .. Average deposits increased $50.2 million from 3Q19 and $212.7 million from 4Q18 .. Continued growth in noninterest-bearing and NOW accounts .. Total depo
Slide 7: Trust and Investment Management
Trust and Investment Management .. Total assets under management increased $952.5 million, or 18.2%, from December 31, 2018 .. Total assets under management increased $71.2 million from September 30, 2019 to $6.19 billion at December 31, 2019 .. Increase was primarily attributable to market gains, a
Slide 8: 4Q19 Gross Revenue
Non-interest Income $8,045 Net Interest Income $8,190 50.4% 49.6% Gross Revenue 8 (1) See Non-GAAP reconciliation 4Q19 Gross Revenue(1) .. Gross revenue increased 13.9% from 4Q18 .. Higher net interest income helped to offset by higher provision and seasonal slow down of mortgage loans .. Late quart
Slide 9: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin 9 Net Interest Income .. Net interest income increased 3.1% from 3Q19, primarily due to a reduction in interest expense .. Net interest margin decreased to 2.91%, primarily due to a decline in the yield on earning assets .. Earning asset yields declined due
Slide 10: Non-Interest Income
Non-Interest Income 10 Total Non-Interest Income .. Total non-interest income decreased by 6.4%, primarily due to seasonally slower mortgage activity in the fourth quarter .. $200.4 million in mortgage loans funded in 4Q19 compared to $226.5 million in 3Q19 Trust & Investment Management Fees $6,351
Slide 11: Non-Interest Expense and Efficiency Ratio
Non-Interest Expense and Efficiency Ratio 11 Total Non-Interest Expense(1) .. Non-interest expense decreased 2.7% from 3Q19 .. Decrease was primarily driven by lower equity compensation earnout related to residential mortgage business Operating Efficiency Ratio(1) 80.6% 83.2% 78.2% 80.6% 80.5% Q4 20
Slide 12: Asset Quality
Asset Quality 12 Non-Performing Assets/Total Assets .. Generally stable trends in the portfolio with decreases in non-performing loans and non- performing assets .. Loss experience continues to be extremely low .. $0.4 million provision expense primarily reflects strong growth in total loans Net Cha
Slide 13: Outlook
Outlook 13 .. Increased focus on asset generation expected to complement success in growing total deposits and AUM .. Commercial banking initiative focused on building expertise in specific vertical markets 1Q20 launch of first vertical market: medical and dental practices .. Continued growth in n
Slide 14: Appendix
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Slide 15: Non-GAAP Reconciliation: Efficiency Ratio and Tangible Book Value
15 Non-GAAP Reconciliation Consolidated Efficiency Ratio For the Three Months Ended, (Dollars in thousands) December 31, 2018 March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Non-interest expense $11,649 $12,602 $14,659 $13,442 $13,082 Less: Amortization 163 173 142 52 7 Less: Goodw
Slide 16: Non-GAAP Reconciliation: Gross Revenue
16 Non-GAAP Reconciliation Wealth Management Gross Revenue For the Three Months Ended, (Dollars in thousands) December 31, 2018 March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Total income before non-interest expense $12,289 $12,509 $12,550 $12,554 $12,534 Less: Net gain on sale of
Slide 17: Non-GAAP Reconciliation: Goodwill Impairment Impact
17 Non-GAAP Reconciliation Impact of Goodwill impairment – Net income available to common shareholder For the Three Months Ended, (Dollars in thousands, except per share data) June 30, 2019 September 30, 2019 December 31, 2019 Net income available to common shareholders $1,404 $2,406 $2,572 Plus: Go
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