First Western Financial, Inc. · NASDAQ:MYFW
First Western Financial — Q1 2019 Earnings Presentation
16 slides from First Western Financial's earnings presentation, Apr 25, 2019
Slide 1: First Quarter 2019 Financial Results
First Western Financial, Inc. The First, Western-Based Private Trust Bank First 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 1Q19
Overview of 1Q19 Well Diversified Loan Production Consistent Earnings Performance Strong Balance Sheet Growth .. Gross loans increased at 16.7% annualized rate in 1Q19 .. Deposits increased at 17.2% annualized rate in 1Q19 .. Average deposits increased at 46.0% annualized rate in 1Q19 .. Net interes
Slide 4: Net Income Available to Common Shareholders and Earnings per Share
$0.11 $0.08 $0.19 $0.22 $0.21 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Net Income Available to Common Shareholders and Earnings per Share 4 Net Income Available to Common Shareholders .. Continued execution on embedded growth drivers producing consistent level of higher earnings .. Asset growth offse
Slide 5: Loan Portfolio
$831 $862 $880 $893 $929 $908 $950 1Q18 2Q18 3Q18 4Q18 1Q19 4Q18 1Q19 HFI HFSAverage Period End Loan Portfolio 5 Loan Portfolio Composition(1) .. Annualized gross loan growth of 16.7% in Q1 2019 .. Total new loan production of $64 million in Q1 2019 vs $102 million in Q4 2018 .. Well diversified gro
Slide 6: Deposit Portfolio Composition
$810 $838 $862 $880 $981 $938 $978 1Q18 2Q18 3Q18 4Q18 1Q19 4Q18 1Q19 Average Period End Total Deposits 6 Deposit Portfolio Composition .. Total deposits increased $40.3 million from Q4 2018, annualized growth of 17.2% ..Average deposits increased 46.0% annualized on linked quarter basis .. Stronges
Slide 7: Trust and Investment Management
Trust and Investment Management .. Total assets under management increased $546 million from Q4 2018 .. Increase largely related to increase in equity market (S&P up 13.1% in Q1 2019) .. New accounts provided $53 million in new assets and contributions added $153 million in Q1 2019 $5,358 $5,416 $5,
Slide 8: Gross Revenue
Non-interest Income 6,976 Net Interest Income 7,971 53.3% 46.7% Gross Revenue 8(1) See Non-GAAP reconciliation Q1 2019 Gross Revenue(1) .. Gross revenue increased 4.9% from prior quarter .. Balance sheet growth drove 8.3% increase in net interest income year-over-year .. Strong quarter of mortgage a
Slide 9: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin 9 Net Interest Income .. Net interest income increased 0.9%, primarily due to higher average loan balances .. Net interest margin decreased to 3.03% .. Inflows of high beta trust deposits impacting deposit costs Net Interest Margin 3.25% 3.29% 3.29% 3.29% 3.
Slide 10: Non-Interest Income
Non-Interest Income 10 Total Non-Interest Income .. Total non-interest income increased by 9.8% due to higher gains on mortgage loans sold .. Trust and investment management fees declined due to lower starting point for AUM in 1Q19 Trust & Investment Management Fees $7,292 $6,892 $6,638 $6,351 $6,97
Slide 11: Non-Interest Expense and Efficiency Ratio
Non-Interest Expense and Efficiency Ratio 11 Total Non-Interest Expense .. Total non-interest expense increased 8.2%, primarily due to higher bonus accrual and payroll tax .. Efficiency ratio(1) increases to 83.2% due to higher expense levels .. Year-over-year improvement in efficiency ratio demonst
Slide 12: Asset Quality
Asset Quality 12 Non-Performing Assets/Total Assets .. Total NPAs decline from prior quarter due to paydowns .. Loss experience continues to be extremely low .. Provision expense of $0.2 million driven by growth in loan portfolio Net Charge-Offs/Average Loans 0.0% 0.0% 0.0% 0.0% 0.0% Q1 2018 Q2 2018
Slide 13: Outlook
Outlook 13 ..Business development platform expected to continue to gain traction and drive further increases in gross revenue .. Second half of 2019 expected to be stronger than first half .. Loan production continues to be well diversified .. Lower mortgage rates and seasonal factors driving increa
Slide 14: Appendix
Ww Figstwestern Appendix
Slide 15: Non-GAAP Reconciliation: Consolidated Efficiency Ratio
15 Non-GAAP Reconciliation Consolidated Efficiency Ratio For the Three Months Ended, (Dollars in thousands) March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 March 31, 2019 Non-interest expense $13,286 $13,084 $12,176 $11,649 $12,602 Less: Amortization 230 230 208 163 173 Adjusted no
Slide 16: Non-GAAP Reconciliation: Gross Revenue by Segment
16 Non-GAAP Reconciliation Wealth Management Gross Revenue For the Three Months Ended, (Dollars in thousands) March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 March 31, 2019 Total income before non-interest expense $12,711 $12,257 $12,383 $12,289 $12,509 Less: Net gain (loss) on sal
First Western Financial — Q1 2019 Earnings Presentation on 6ix