First Western Financial, Inc. · NASDAQ:MYFW
First Western Financial — Q3 2018 Earnings Presentation
16 slides from First Western Financial's earnings presentation, Oct 25, 2018
Slide 1: Third Quarter 2018 Financial Results
First Western Financial, Inc. The First, Western-Based Private Trust Bank Third Quarter 2018 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 3Q18
Overview of 3Q18 Growing Business Development Momentum .. Net proceeds before expenses of $34.1 million supports future growth of franchise Improved Capital Structure Strong Earnings Growth .. Net income available to common shareholders of $1.4 million, or $0.19 per diluted share, an increase of 138
Slide 4: Net Income Available to Common Shareholders and Earnings per Share
$0.11 $0.08 $0.19 Q1 2018 Q2 2018 Q3 2018 Net Income Available to Common Shareholders and Earnings per Share 4 Net Income Available to Common Shareholders .. Execution on embedded growth drivers produced strong improvement in profitability .. Net income available to common shareholders increased 195
Slide 5: Loan Portfolio
$749 $783 $812 $830 $858 $843 $857 3Q17 4Q17 1Q18 2Q18 3Q18 2Q18 3Q18 Average Period End Loan Portfolio 5 Loan Portfolio Composition(1) .. Annualized growth of 7.0% from Q2 2018 .. Strongest growth in residential mortgage portfolio .. Late quarter payoffs impacted end of period loan balances 3Q 2018
Slide 6: Total Deposits
$792 $801 $810 $838 $862 $844 $879 3Q17 4Q17 1Q18 2Q18 3Q18 2Q18 3Q18 Average Period End Total Deposits 6 Deposit Portfolio Composition .. Total deposits increased $34.9 million from Q2 2018, annualized growth of 16.5% .. Strongest growth in money market deposit accounts .. Inflows of trust deposits
Slide 7: Trust and Investment Management
Trust and Investment Management .. Total assets under management increased $210.2 million from Q2 2018 .. Strong quarter for new client acquisitions .. Growth offset by client departures to former wealth management associate .. Strong relative investment performance $5,180 $5,374 $5,358 $5,416 $5,62
Slide 8: Q3 2018 Gross Revenue
Non-interest Income $6.6 MillionNet Interest Income $7.8 Million 54.0% 46.0% Total Revenue 8(1) See Non-GAAP reconciliation Q3 2018 Gross Revenue(1) .. Total revenue stable with prior quarter .. Increase in total loans drove a 2.8% increase in net interest income .. Total revenue impacted by decline
Slide 9: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin 9 Net Interest Income .. Net interest income increased 2.8%, primarily due to higher average loan balances .. Net interest margin remains stable at 3.29% .. Increase in loan yields largely offsetting increase in deposit costs .. Increases in deposit rates fo
Slide 10: Non-Interest Income
Non-Interest Income 10 Total Non-Interest Income .. Total non-interest income declined 3.7%, primarily due to lower gains on mortgage loans sold .. Trust and investment management fees increased 1.7% due to growth in AUM Trust & Investment Management Fees $6,745 $8,429 $7,292 $6,892 $6,638 Q3 2017 Q
Slide 11: Non-Interest Expense and Efficiency Ratio
Non-Interest Expense and Efficiency Ratio 11 Total Non-Interest Expense .. Total non-interest expensed declined 6.9%, primarily due to expense reductions in capital management business, as previously expected .. Salaries and employee benefits declined 5.7%, primarily due to staff reductions and lowe
Slide 12: Asset Quality
Asset Quality 12 Non-Performing Assets/Total Assets .. NPAs increased $15.3 million from prior quarter $11.3 million related to a Cash, Securities and Other loan (currently in workout process with no specific reserve required) Remaining increase related to administrative delays in renewing two c
Slide 13: Progress Report on Earnings Drivers
Progress Report on Earnings Drivers 13 Earnings Driver 3Q18 Update Lower capital costs • Redeemed preferred stock of $25.4 million and sub debt of $6.9 million • $2.7 million annual savings Increased loan growth • IPO removed existing capital constraints • Average loans in 3Q18 up 14.6% year-over-ye
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 eve
Slide 15: Appendix
Ww FIRsTwestern, Appendix
Slide 16: Non-GAAP Reconciliation
16 Non-GAAP Reconciliation (1) Quarterly information has not been audited or reviewed Consolidated Efficiency Ratio For the Three Months Ended, (Dollars in thousands) September 30, 2017 December 31, 2017(1) March 31, 2018 June 30, 2018 September 30, 2018 Non-interest expense $ 12,134 $ 13,810 $ 13,2
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