First Western Financial, Inc. · NASDAQ:MYFW
First Western Financial — Shareholder Meeting (June 2024)
21 slides from First Western Financial's shareholder meeting presentation, Jun 3, 2024
Slide 1: 2024 Annual Meeting of Shareholders
2024 Annual Meeting of Shareholders June 5, 2024
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: 2023 Review and Highlights
3 2023 Review and Highlights ▪ The strength of our franchise was never more evident than during the turmoil that impacted the banking industry during early 2023 ➢ While other banks were seeing significant deposit outflows, our deposits were stable ➢ Essentially no concern expressed by our clients ➢
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 ▪ Loyal clients who value the level of service and expertise we provide that results in a sticky deposit base as proven during the banking indus
Slide 5: Strong Operational and Financial Momentum
$4,556 $5,795 $7,602 $10,854 $38,429 $32,611 $33,733 $17,533 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 2016 2017 2018 2019 2020 2021 2022 2023 2016-2020 Pre-Tax, Pre-Provision Income(1) ($000s) 5 Strong Operational and Financial Momentum ▪ Robust organic balance sheet growth
Slide 6: Consistent Value Creation
6 Consistent Value Creation TBV/Share(1) Up ~140% Since July 2018 IPO Consistent increases in tangible book value per share driven by: • Organic growth that has increased operating leverage • Accretive acquisitions that have been well priced and smoothly integrated to realize all projected cost savi
Slide 7: Driving Profitable Growth
Driving Profitable Growth W FirRSTWwestern
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 ▪ Capitalize on growing reputation to attract additional experienced commercial banking talent Expand into new markets with attractive demographics ▪ Vail Valley office opened in
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 $268.2 $225.6 $317.9 $691.7 $561.2 $918.7 $255.7 $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 $900.0 $1,000.0 2017 2018 2019 2020 2021 2022 2023 $62.2
Slide 12: Recent Revenue Headwinds Obscure Broader Trend of Improving Productivity
12 Recent Revenue Headwinds Obscure Broader Trend of Improving Productivity 85.4% 80.6% 59.8% 66.6% 69.2% 79.0% 50.0% 60.0% 70.0% 80.0% 90.0% 2018 2019 2020 2021 2022 2023 (1) See Non-GAAP reconciliation Efficiency Ratio(1)
Slide 13: Wealth Management Segment Earnings
13 Wealth Management Segment Earnings (1) See Non-GAAP reconciliation $0.78 $1.60 $3.09 $3.33 $1.13$1.29 $4.24 $3.81 $3.09 $0.87 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 FY19 FY20 FY21 FY22 FY23 Wealth Management Segment Consolidated ▪ Wealth Management segment earnings reflects c
Slide 14: Creating Additional Shareholder Value
Creating Additional Shareholder Value 14
Slide 15: 2024 Outlook and Priorities
15 2024 Outlook and Priorities • Well positioned to manage through and perform well in any economic scenario that emerges in 2024 • Prudent risk management and conservative underwriting criteria expected to result in modest asset growth in 2024 until economic conditions improve • Deposit gathering w
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 drive
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations 17
Slide 18: Non-GAAP Reconciliation: 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 2023 Net Income before income tax, as reported $3,571 $5,007 $7,422 $10,192 $33,063 $27,280 $28,828 $7,061 Plus: Provisio
Slide 19: Non-GAAP Reconciliation: Consolidated Efficiency Ratio
19 Non-GAAP Reconciliation Consolidated Efficiency Ratio For the Years Ended, (Dollars in thousands) 2016 2017 2018 2019 2020 2021 2022 2023 Non-interest expense $49,823 $49,494 $50,182 $53,806 $59,552 $68,128 $79,106 $75,637 Less: Amortization 747 784 831 374 14 17 308 250 Less: Acquisition related
Slide 20: Non-GAAP Reconciliation: Tangible Common Book Value Per Share
20 Non-GAAP Reconciliation 1. Represents the intangible portion of assets held for sale 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 Dec. 31, 2023 Total shareholders' equity $116,875 $127,678 $15
Slide 21: Non-GAAP Reconciliation: 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) 2019 2020 2021 2022 2023 Non-Mortgage income before income tax $6,152 $12,086 $21,378 $31,139 $9,591 Plus: Acquisition-related expenses - 684 4,101 1,223 117 Plus: Impairment
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