First Western Financial, Inc. · NASDAQ:MYFW
First Western Financial — Shareholder Meeting (June 2021)
22 slides from First Western Financial's shareholder meeting presentation, Jun 7, 2021
Slide 1: 2021 Annual Meeting of Shareholders
2021 Annual Meeting of Shareholders June 9, 2021
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 2020 Record Performance Despite COVID-19 Pandemic
3 Overview of 2020 Record Performance Despite COVID-19 Pandemic Growing Sources of Fee Income Significant Increase in Profitability Exceptional Balance Sheet Growth ▪ Total assets increased 58% in FY 2020 ▪ Total loans increased 54% in FY 2020 ▪ Total deposits increased 49% in FY 2020 ▪ Minimal expo
Slide 4: Recent Strategic, Operational, and Financial Highlights
4 Recent Strategic, Operational, and Financial Highlights ▪ Assisted clients in accessing 677 loans totaling $220.3 million in PPP funding, resulting in significant growth in our commercial client roster ▪ Expanded our presence in the Denver market and strengthened our commercial banking platform wi
Slide 5: Strong Operational and Financial Momentum
$4,556 $5,795 $7,602 $10,854 $37,745 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 2016 2017 2018 2019 2020 2016-2020 Pre-Tax, Pre-Provision Income(1) ($000s) (in thousands) 5 Strong Operational and Financial Momentum ▪ Robust balance sheet growth ▪ Higher fee income driven by st
Slide 6: Highly Accretive Branch Purchase and Assumption Expanded Denver Presence
▪ Highly accretive to earnings ▪ 7-8% accretive in 2020, excluding pre-tax transaction charges(1) ▪ 15-16% accretive in 2021(1) ▪ Acquisition of all of the Denver locations of Simmons Bank (three branches and one loan production office) ▪ Three of the locations were consolidated into an existing Fir
Slide 7: Strong Performance Creating Shareholder Value
$9.19 $11.14 $11.50 $11.88 $12.38 $12.83 $13.15 $13.39 $14.13 $15.38 $16.44 $17.24 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 6/30/2018 9/30/2018 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021 MYFW TBV/Share 7 Strong Performance Creating Sharehol
Slide 8: Improving Earnings and Strong Asset Quality Drove Outperformance in 2020
8 Improving Earnings and Strong Asset Quality Drove Outperformance in 2020
Slide 9: Driving Profitable Growth
Driving Profitable Growth : W Firstwestern
Slide 10: Success in Expansion and Acquisition Growth
10 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 ▪ Phoenix, AZ 2016 – 2021 (4) ▪ Broomfield, CO (2021) ▪ Greenwood Village, CO ▪ Lone
Slide 11: Revenue Growth Strategies
11 Revenue Growth Strategies Expand commercial loan production platform ▪ Building expertise in specific vertical markets, e.g. medical and dental practices ▪ Capitalize on growing reputation to attract additional experience commercial banking talent Expand into new markets with attractive demograph
Slide 12: Accelerating Business Development Trends
12 Accelerating Business Development Trends Capital raised in July 2018 IPO has allowed for increased business development activities $227.9 $268.2 $225.6 $317.9 $691.7 $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 2016 2017 2018 2019 2020 $44.0 $62.2 $121.6 $149.0 $467.9 $0.0 $100.0 $200.0
Slide 13: Increased Scale and Back-Office Streamlining Driving Improved Efficiencies
13 Increased Scale and Back-Office Streamlining Driving Improved Efficiencies 90.4% 88.2% 85.4% 80.6% 60.5% 50.0% 60.0% 70.0% 80.0% 90.0% 2016 2017 2018 2019 2020 (1) See Non-GAAP reconciliation Efficiency Ratio(1)
Slide 14: Commercial Banking Driving Growth
▪ During 2020, expanded commercial banking team and added construction lending expertise ▪ Increase in commercial banking clients contributing to growth in total loans and low-cost deposits while improving overall diversification ▪ Stronger commercial banking platform complements private banking and
Slide 15: Non-Mortgage Segment Earnings Growth
15 Non-Mortgage Segment Earnings Growth (1) See Non-GAAP reconciliation $0.78 $1.52 $0.00 $0.50 $1.00 $1.50 $2.00 FY 2019 FY 2020 ▪ Strong balance sheet growth and improving operating leverage creating sustainable path to higher earnings and profitability over long-term ▪ Non-mortgage segment earnin
Slide 16: Creating Additional Shareholder Value
Creating Additional Shareholder Value 16
Slide 17: 2021 Outlook and Priorities
17 2021 Outlook and Priorities ▪ Strong capital generation in 2020 provides support for continued organic and acquisition-related growth ▪ Progress made in strengthening commercial banking capabilities in 2020 creates strong foundation for 2021 growth ▪ Continue expanding commercial banking platform
Slide 18: Long-Term Goals to Drive Shareholder Value
18 Long-Term Goals to Drive Shareholder Value ▪ Drive to $5 billion in total assets, $25 billion TIM assets through both organic growth and acquisitions ▪ ~50 offices ▪ $7-8 million in revenue per office ▪ 60% contribution margin per office ▪ Build footprint, scale and operating leverage with M&A ▪
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations 19
Slide 20: Non-GAAP Reconciliation Consolidated Tangible Common Book Value Per Share
20 Non-GAAP Reconciliation Consolidated Tangible Common Book Value Per Share As of the Three Months Ended, (Dollars in thousands) June 30, 2018 Sep. 30, 2018 Dec. 31, 2018 March 31, 2019 June 30, 2019 Sep. 30, 2019 Dec. 31, 2019 March 31, 2020 June 30, 2020 Sep. 30, 2020 Dec. 31, 2020 March 31, 2021
Slide 21: Non-GAAP Reconciliation Consolidated Efficiency Ratio
21 Non-GAAP Reconciliation Consolidated Efficiency Ratio For the Years Ended, (Dollars in thousands) 2016 2017 2018 2019 2020 Non-interest expense $49,823 $49,494 $50,195 $53,784 $59,537 Less: Amortization 747 784 831 374 14 Less: Goodwill impairment --- 1,572 - Less: Provision on other real estate
Slide 22: Non-GAAP Reconciliation Non-Mortgage Segment Diluted Pre-Tax Earnings Per Share
22 Non-GAAP Reconciliation Non-Mortgage Segment Diluted Pre-Tax Earnings Per Share For The Years Ended December 31, (Dollars in thousands) 2019 2020 Non-Mortgage income before income tax $6,152 $12,086 Mortgage income before income tax 4,040 20,977 Less: Income tax expense 2,183 8,529 Less: Preferre
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