First Western Financial, Inc. · NASDAQ:MYFW
First Western Financial — Shareholder Meeting (June 2025)
22 slides from First Western Financial's shareholder meeting presentation, Jun 3, 2025
Slide 1: 2025 Annual Meeting of Shareholders
2025 Annual Meeting of Shareholders June 4, 2025
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: 2024 Review and Highlights
3 2024 Review and Highlights ▪ While economic conditions and interest rates created a challenging operating environment, our strong execution resulted in the achievement of key objectives ➢ Increasing our liquidity by reducing our loan-to-deposit ratio ➢ Expanding our net interest margin ➢ Improving
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 ▪ Well diversified business model
Slide 5: Strong Operational and Financial Momentum
5 Strong Operational and Financial Momentum ▪ Robust organic balance sheet growth ▪ Accretive acquisitions ▪ Market expansion ▪ Highly leverageable operating platform driving improved efficiencies ▪ Minimal credit losses Drivers of Improved Performance
Slide 6: Consistent Value Creation
6 Consistent Value Creation TBV/Share(1) Up ~166% Since December 2017 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 FIRSTWestern
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 ▪ Upgraded C&I product and service capabilities ▪ Building expertise in specific vertical markets ▪ Capitalize on growing reputation to attract additional experienced commercial banking talent Expand into new markets with attract
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: Wealth Management Segment Earnings
11 Wealth Management Segment Earnings (1) See Non-GAAP reconciliation $1.52 $2.60 $3.21 $1.12 $1.12 $4.15 $3.31 $2.97 $0.85 $1.22 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 FY20 FY21 FY22 FY23 FY24 Wealth Management Segment Consolidated ▪ Wealth Management segment earnings reflects
Slide 12: Creating Additional Shareholder Value
Creating Additional Shareholder Value 12
Slide 13: 2025 Outlook and Priorities
13 2025 Outlook and Priorities • First Western's markets continue to perform well and the strength of our balance sheet and franchise provides opportunities to capitalize on market disruption and challenges being faced by competing banks to add new clients and banking talent • Addition of banking ta
Slide 14: Drivers of Long-Term Improved Financial Performance
14 Drivers of Long-Term Improved Financial Performance Efficiency Ratio Asset Quality ROA and ROE ▪ Net interest margin expanding due to increase in average yield on loans and improving deposit mix ▪ Disciplined balance sheet management and effective business development efforts expected to result i
Slide 15: Long-Term Goals to Drive Shareholder Value
15 Long-Term Goals to Drive Shareholder Value Since our pre-2018 IPO status as of year end 2017, we have tripled total loans and total deposits, more than doubled TBV per share, had substantial increases in annual revenue, and demonstrated significant operating leverage. Looking forward we can drive
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations 16
Slide 17: Non-GAAP Reconciliation: Consolidated Gross Revenue
17 Non-GAAP Reconciliation Consolidated Gross Revenue For the Years Ended, (Dollars in thousands) 2018 2019 2020 2021 2022 2023 2024 Total income before non-interest expense 57,602$ 63,997$ 92,615$ 95,408$ 107,934$ 82,698$ 90,071$ Less: Unrealized (loss) gain recognized on equity securities (15) 21
Slide 18: Non-GAAP Reconciliation: Consolidated Efficiency Ratio
18 Non-GAAP Reconciliation Consolidated Efficency Ratio (Dollars in thousands) 2018 2019 2020 2021 2022 2023 2024 Non-interest expense 50,182$ 53,806$ 59,552$ 68,128$ 79,106$ 75,637$ 78,492$ Less: OREO expenses and write-downs - - 190 - - - 1,285 Less: Loss on assets held for sale - - 553 - - - - Pl
Slide 19: Non-GAAP Reconciliation
19 Non-GAAP Reconciliation (Dollars in thousands) 31-Dec-23 31-Mar-24 30-Jun-24 30-Sep-24 31-Dec-24 Wealth Management (loss) income before income tax (3,626)$ 3,397$ 645$ 2,218$ 4,369$ Mortgage (loss) income before income tax (731) 182 770 453 (455) Plus: Impairment of contingent consideration asset
Slide 20: Non-GAAP Reconciliation: Tangible Common Book Value Per Share
20 Non-GAAP Reconciliation Consolidated Tangible Common Book Value Per Share As of, (Dollars in thousands) Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 Mar. 31, 2024 Jun. 30, 2024 Sept. 30, 2024 Dec. 31, 2024 Total shareholders' equity $ 127,678 $ 154,962 $ 219,041 $ 240,864
Slide 21: Non-GAAP Reconciliation: Wealth Management Gross Revenue
21 Non-GAAP Reconciliation Wealth Management Gross Revenue For the Three Months Ended, (Dollars in thousands) December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Total income before non-interest expense $ 13,362 $ 21,890 $ 18,242 $ 20,296 $ 23,540 Less: unrealized (lo
Slide 22: Non-GAAP Reconciliation: Allowance for Credit Losses
22 Non-GAAP Reconciliation Allowance for Credit Losses to Bank Originated Loans Excluding PPP As of (Dollars in thousands) December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Total loans held for investment $ 2,539,990 $ 2,480,196 $ 2,460,690 $ 2,387,288 $ 2,428,994 L
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