First Western Reports Fourth Quarter 2024 Financial Results
First Western Financial (NASDAQ: MYFW) reported Q4 2024 financial results with net income of $2.7 million ($0.28 per diluted share), up from $2.1 million in Q3 2024 and improving from a net loss of $3.2 million in Q4 2023.
Key Q4 2024 metrics include: net interest income of $16.9 million (up 8.3% from Q3), net interest margin increased to 2.45% (up 13 basis points), total loans grew 2.1% to $2.45 billion, and average deposits increased 4.0% to $2.50 billion. The company recorded a provision release of $1.0 million and maintained strong capital ratios with Tier 1 capital at 10.07%.
Non-performing assets totaled $49.0 million (1.68% of total assets), improving from $52.1 million in Q3. Assets Under Management decreased to $7.32 billion from $7.47 billion in Q3 2024, but showed improvement from $6.75 billion in Q4 2023.
First Western Financial (NASDAQ: MYFW) ha riportato i risultati finanziari del Q4 2024 con un reddito netto di 2,7 milioni di dollari (0,28 dollari per azione diluita), in aumento rispetto ai 2,1 milioni di dollari del Q3 2024 e migliorando rispetto a una perdita netta di 3,2 milioni di dollari nel Q4 2023.
I principali indicatori del Q4 2024 includono: reddito netto da interessi di 16,9 milioni di dollari (in aumento dell'8,3% rispetto al Q3), margine di interesse netto aumentato al 2,45% (in crescita di 13 punti base), totale prestiti cresciuti del 2,1% fino a 2,45 miliardi di dollari e depositi medi aumentati del 4,0% fino a 2,50 miliardi di dollari. L'azienda ha registrato un rilascio di accantonamenti di 1,0 milione di dollari e ha mantenuto solidi rapporti di capitale con il capitale di base al 10,07%.
Gli attivi non performanti ammontano a 49,0 milioni di dollari (1,68% del totale degli attivi), migliorando rispetto ai 52,1 milioni di dollari nel Q3. Gli attivi in gestione sono diminuiti a 7,32 miliardi di dollari rispetto ai 7,47 miliardi di dollari nel Q3 2024, ma mostrano un miglioramento rispetto ai 6,75 miliardi di dollari nel Q4 2023.
First Western Financial (NASDAQ: MYFW) informó los resultados financieros del Q4 2024 con un ingreso neto de 2.7 millones de dólares (0.28 dólares por acción diluida), un aumento respecto a los 2.1 millones de dólares del Q3 2024 y mejorando desde una pérdida neta de 3.2 millones de dólares en el Q4 2023.
Los principales indicadores del Q4 2024 incluyen: ingreso neto por intereses de 16.9 millones de dólares (un aumento del 8.3% respecto al Q3), margen de interés neto incrementado al 2.45% (un aumento de 13 puntos básicos), préstamos totales crecieron un 2.1% hasta 2.45 mil millones de dólares, y los depósitos promedio aumentaron un 4.0% hasta 2.50 mil millones de dólares. La compañía registró un liberación de provisión de 1.0 millón de dólares y mantuvo sólidos ratios de capital con un capital de nivel 1 al 10.07%.
Los activos no productivos totalizaron 49.0 millones de dólares (1.68% del total de activos), mejorando desde 52.1 millones en el Q3. Los activos bajo gestión disminuyeron a 7.32 mil millones de dólares desde 7.47 mil millones en el Q3 2024, pero mostraron mejora desde 6.75 mil millones en el Q4 2023.
퍼스트 웨스턴 파이낸셜 (NASDAQ: MYFW)는 2024년 4분기 재무 결과를 발표했으며, 순이익 270만 달러 (주당 0.28 달러)로, 2024년 3분기 210만 달러에서 증가하고 2023년 4분기 320만 달러 손실에서 개선되었습니다.
2024년 4분기의 주요 지표는 다음과 같습니다: 순이자 수익 1690만 달러 (3분기 대비 8.3% 증가), 순이자 마진이 2.45%로 증가 (13베이시스 포인트 증가), 총 대출이 2.1% 증가하여 24억 5000만 달러에 도달하고 평균 예금이 4.0% 증가하여 25억 달러가 되었습니다. 이 회사는 100만 달러의 충당금 환불을 기록했으며, 기본자본 비율을 10.07%로 유지했습니다.
수익성이 없는 자산은 총 4900만 달러 (총 자산의 1.68%)로, 3분기의 5210만 달러에서 개선되었습니다. 관리 자산은 2024년 3분기 74억 7000만 달러에서 73억 2000만 달러로 감소했으나, 2023년 4분기 67억 5000만 달러에서 개선되었습니다.
First Western Financial (NASDAQ: MYFW) a annoncé ses résultats financiers pour le 4e trimestre 2024 avec un bénéfice net de 2,7 millions de dollars (0,28 dollar par action diluée), en hausse par rapport à 2,1 millions de dollars au 3e trimestre 2024 et s'améliorant par rapport à une perte nette de 3,2 millions de dollars au 4e trimestre 2023.
Les principaux indicateurs du 4e trimestre 2024 comprennent : les revenus nets d'intérêts de 16,9 millions de dollars (en hausse de 8,3% par rapport au 3e trimestre), la marge d'intérêts nets a augmenté à 2,45% (hausse de 13 points de base), le total des prêts a augmenté de 2,1% pour atteindre 2,45 milliards de dollars, et les dépôts moyens ont augmenté de 4,0% pour atteindre 2,50 milliards de dollars. La société a enregistré une libération de provision de 1 million de dollars et a maintenu des ratios de capital solides avec un capital de niveau 1 à 10,07 %.
Les actifs non performants ont totalisé 49,0 millions de dollars (1,68% des actifs totaux), s'améliorant par rapport à 52,1 millions de dollars au 3e trimestre. Les actifs sous gestion ont diminué à 7,32 milliards de dollars contre 7,47 milliards de dollars au 3e trimestre 2024, mais ont montré une amélioration par rapport à 6,75 milliards de dollars au 4e trimestre 2023.
First Western Financial (NASDAQ: MYFW) berichtete über die finanziellen Ergebnisse des 4. Quartals 2024 mit einem Nettoergebnis von 2,7 Millionen Dollar (0,28 Dollar pro verwässerter Aktie), was einen Anstieg von 2.1 Millionen Dollar im 3. Quartal 2024 darstellt und sich von einem Nettoverlust von 3,2 Millionen Dollar im 4. Quartal 2023 verbessert hat.
Wichtige Kennzahlen im 4. Quartal 2024 sind: Nettozinsüberschuss von 16,9 Millionen Dollar (Anstieg von 8,3% gegenüber dem 3. Quartal), Nettozinsspanne auf 2,45% erhöht (Anstieg um 13 Basispunkte), Gesamtforderungen stiegen um 2,1% auf 2,45 Milliarden Dollar, und die durchschnittlichen Einlagen stiegen um 4,0% auf 2,50 Milliarden Dollar. Das Unternehmen verzeichnete eine Rückstellung von 1,0 Millionen Dollar und hielt starke Kapitalquoten mit einem Kernkapital von 10,07% bei.
Nicht leistungsfähige Vermögenswerte beliefen sich auf 49,0 Millionen Dollar (1,68% der Gesamtnettovermögen) und verbesserten sich von 52,1 Millionen Dollar im 3. Quartal. Die verwalteten Vermögenswerte sanken von 7,47 Milliarden Dollar im 3. Quartal 2024 auf 7,32 Milliarden Dollar, zeigten jedoch eine Verbesserung gegenüber 6,75 Milliarden Dollar im 4. Quartal 2023.
- Net income increased to $2.7 million in Q4 from $2.1 million in Q3 2024
- Net interest income grew 8.3% quarter-over-quarter to $16.9 million
- Net interest margin improved by 13 basis points to 2.45%
- Total loans increased 2.1% to $2.45 billion
- Average deposits grew 4.0% to $2.50 billion
- $1.0 million provision release in Q4 2024
- Non-performing assets remain elevated at $49.0 million (1.68% of total assets)
- Assets Under Management declined to $7.32 billion from $7.47 billion in Q3 2024
- Efficiency ratio remains high at 80.7%
- Non-interest expense increased 5.2% quarter-over-quarter to $20.4 million
Insights
First Western's Q4 2024 results demonstrate a remarkable turnaround, with net income of $2.7M marking a substantial recovery from the $3.2M loss in Q4 2023. The $1.0M provision release this quarter, compared to an $8.5M provision expense last year, signals improving credit quality and risk management.
Several key performance indicators reflect strengthening fundamentals:
- Net interest margin expanded to
2.45% , driven by improved deposit cost management with interest-bearing deposit costs declining41 basis points to3.78% - Average deposits grew
4.0% QoQ to$2.50B , demonstrating solid funding stability - Non-performing assets decreased to
1.68% of total assets, with successful reduction in problem loans
The efficiency ratio improvement to
Capital levels remain robust with a
Fourth Quarter 2024 Summary
- Net income available to common shareholders of
$2.7 million in Q4 2024, compared to$2.1 million in Q3 2024 - Diluted earnings per share of
$0.28 in Q4 2024, compared to$0.22 in Q3 2024 - Net interest income of
$16.9 million in Q4 2024, compared to$15.6 million in Q3 2024 - Net interest margin increased 13 basis points from
2.32% in Q3 2024 to2.45% in Q4 2024 - Total loans increased
2.1% from$2.40 billion in Q3 2024 to$2.45 billion in Q4 2024 - Average deposits increased
4.0% from$2.40 billion in Q3 2024 to$2.50 billion in Q4 2024
DENVER, Jan. 23, 2025 (GLOBE NEWSWIRE) -- First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the fourth quarter ended December 31, 2024.
Net income available to common shareholders was
Scott C. Wylie, CEO of First Western, commented, “We continued to execute well in the fourth quarter and generated further improvement in our level of profitability. We saw positive trends in many areas including both loan and deposit growth with our fourth quarter loan production being well diversified and the highest level we had in 2024, growth in net interest income resulting from both an increase in average interest-earning assets and expansion in our net interest margin, the highest level of insurance fees we have ever recorded in a quarter, and strong expense control. We also saw positive trends in our asset quality and we continue to make progress on selling OREO properties with the largest of the properties currently under contract for sale and expected to close during the first quarter.
“With the strength of our balance sheet and the banking talent we have added in recent quarters, we believe we are very well positioned to deliver improved financial performance in 2025. We believe the improved financial performance should be driven by positive trends in loan and deposit growth, net interest margin, non-interest income, and more operating leverage as we maintain disciplined expense control. We also expect to benefit from the redeployment of the cash we generate from the sale of the OREO properties into interest-earning assets. We believe we are well-positioned to generate profitable growth and create additional value for our shareholders in 2025 and the coming years,” said Mr. Wylie.
| For the Three Months Ended | |||||||||||
| December 31, | September 30, | December 31, | |||||||||
| (Dollars in thousands, except per share data) | 2024 | 2024 | 2023 | ||||||||
| Earnings Summary | |||||||||||
| Net interest income | $ | 16,908 | $ | 15,568 | $ | 16,331 | |||||
| (Release of) provision for credit losses | (974 | ) | 501 | 8,493 | |||||||
| Total non-interest income | 6,459 | 6,972 | 6,081 | ||||||||
| Total non-interest expense | 20,427 | 19,368 | 18,276 | ||||||||
| Income/(loss) before income taxes | 3,914 | 2,671 | (4,357 | ) | |||||||
| Income tax expense/(benefit) | 1,166 | 537 | (1,138 | ) | |||||||
| Net income/(loss) available to common shareholders | 2,748 | 2,134 | (3,219 | ) | |||||||
| Basic earnings/(loss) per common share | 0.28 | 0.22 | (0.34 | ) | |||||||
| Diluted earnings/(loss) per common share | 0.28 | 0.22 | (0.34 | ) | |||||||
| Return on average assets (annualized) | 0.38 | % | 0.30 | % | (0.45)% | ||||||
| Return on average shareholders' equity (annualized) | 4.39 | 3.43 | (5.17 | ) | |||||||
| Return on tangible common equity (annualized)(1) | 4.98 | 3.93 | (6.11 | ) | |||||||
| Net interest margin | 2.45 | 2.32 | 2.37 | ||||||||
| Efficiency ratio(1) | 80.74 | 84.98 | 81.21 | ||||||||
____________________
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Operating Results for the Fourth Quarter 2024
Revenue
Total income before non-interest expense was
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Net Interest Income
Net interest income for the fourth quarter of 2024 was
Net Interest Margin
Net interest margin for the fourth quarter of 2024 increased 13 basis points to
The yield on interest-earning assets decreased 14 basis points to
Relative to the fourth quarter of 2023, net interest margin increased 8 basis points from
Non-interest Income
Non-interest income for the fourth quarter of 2024 was
Relative to the fourth quarter of 2023, non-interest income increased
Non-interest Expense
Non-interest expense for the fourth quarter of 2024 was
Relative to the fourth quarter of 2023, non-interest expense increased
The Company’s efficiency ratio(1) was
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Income Taxes
The Company recorded Income tax expense of
Loans
Total loans held for investment were
Deposits
Total deposits were
Borrowings
Federal Home Loan Bank (“FHLB”) and Federal Reserve borrowings were a combined
Subordinated notes were
Assets Under Management
Assets Under Management (“AUM”) decreased to
Credit Quality
Non-performing assets totaled
Non-performing loans totaled
During the fourth quarter of 2024, the Company recorded a provision release of
Capital
As of December 31, 2024, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of December 31, 2024, the Bank was classified as “well capitalized,” as summarized in the following table:
| December 31, | ||
| 2024 | ||
| Consolidated Capital | ||
| Tier 1 capital to risk-weighted assets | 10.07 | % |
| Common Equity Tier 1 ("CET1") to risk-weighted assets | 10.07 | |
| Total capital to risk-weighted assets | 13.12 | |
| Tier 1 capital to average assets | 7.88 | |
| Bank Capital | ||
| Tier 1 capital to risk-weighted assets | 11.41 | % |
| CET1 to risk-weighted assets | 11.41 | |
| Total capital to risk-weighted assets | 12.10 | |
| Tier 1 capital to average assets | 8.94 | |
Book value per common share increased
Tangible book value per common share(1) increased
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Conference Call, Webcast and Slide Presentation
The Company will host a conference call and webcast at 10:00 a.m. MT/ 12:00 p.m. ET on Friday, January 24, 2025. Telephone access: https://register.vevent.com/register/BI702bcd8ae8464babb1e22addf0195689.
A slide presentation relating to the fourth quarter 2024 results will be accessible prior to the scheduled conference call. The slide presentation and webcast of the conference call can be accessed on the Events and Presentations page of the Company’s investor relations website at https://myfw.gcs-web.com.
About First Western
First Western is a financial services holding company headquartered in Denver, Colorado, with operations in Colorado, Arizona, Wyoming, California, and Montana. First Western and its subsidiaries provide a fully integrated suite of wealth management services on a private trust bank platform, which includes a comprehensive selection of deposit, loan, trust, wealth planning and investment management products and services. First Western’s common stock is traded on the Nasdaq Global Select Market under the symbol “MYFW.” For more information, please visit www.myfw.com.
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include “Tangible Common Equity,” “Tangible Common Book Value per Share,” “Return on Tangible Common Equity,” “Efficiency Ratio,” “Gross Revenue,” and “Allowance for Credit Losses to Adjusted Loans". The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies. Reconciliation of non-GAAP financial measures to GAAP financial measures are provided at the end of this press release.
Forward-Looking Statements
Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “position,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “opportunity,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Those risks and uncertainties include, without limitation, the lack of soundness of other financial institutions or financial market utilities may adversely affect the Company; the Company’s ability to engage in routine funding and other transactions could be adversely affected by the actions and commercial soundness of other financial institutions; financial institutions are interrelated because of trading, clearing, counterparty or other relationships; defaults by, or even rumors or questions about, one or more financial institutions or financial market utilities, or the financial services industry generally, may lead to market-wide liquidity problems and losses of client, creditor and counterparty confidence and could lead to losses or defaults by other financial institutions, or the Company; integration risks and projected cost savings in connection with acquisitions; the risk of geographic concentration in Colorado, Arizona, Wyoming, California, and Montana; the risk of changes in the economy affecting real estate values and liquidity; the risk in our ability to continue to originate residential real estate loans and sell such loans; risks specific to commercial loans and borrowers; the risk of claims and litigation pertaining to our fiduciary responsibilities; the risk of competition for investment managers and professionals; the risk of fluctuation in the value of our debt securities; the risk of changes in interest rates; and the risk of the adequacy of our allowance for credit losses and the risk in our ability to maintain a strong core deposit base or other low-cost funding sources. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 15, 2024 (“Form 10-K”), and other documents we file with the SEC from time to time. We urge readers of this news release to review the “Risk Factors” section our Form 10-K and any updates to those risk factors set forth in our subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and our other filings with the SEC. Also, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today’s date, or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Contacts:
Financial Profiles, Inc.
Tony Rossi
310-622-8221
MYFW@finprofiles.com
IR@myfw.com
First Western Financial, Inc.
Condensed Consolidated Statements of Income (unaudited)
| Three Months Ended | |||||||||||
| December 31, | September 30, | December 31, | |||||||||
| (Dollars in thousands, except per share amounts) | 2024 | 2024 | 2023 | ||||||||
| Interest and dividend income: | |||||||||||
| Loans, including fees | $ | 34,287 | $ | 35,353 | $ | 35,625 | |||||
| Loans accounted for under the fair value option | 118 | 141 | 257 | ||||||||
| Debt securities | 696 | 708 | 600 | ||||||||
| Interest-bearing deposits in other financial institutions | 2,879 | 1,754 | 1,350 | ||||||||
| Dividends, restricted stock | 129 | 134 | 161 | ||||||||
| Total interest and dividend income | 38,109 | 38,090 | 37,993 | ||||||||
| Interest expense: | |||||||||||
| Deposits | 19,921 | 21,150 | 19,037 | ||||||||
| Other borrowed funds | 1,280 | 1,372 | 2,625 | ||||||||
| Total interest expense | 21,201 | 22,522 | 21,662 | ||||||||
| Net interest income | 16,908 | 15,568 | 16,331 | ||||||||
| Less: (Release of) provision for credit losses | (974 | ) | 501 | 8,493 | |||||||
| Net interest income, after (release of) provision for credit losses | 17,882 | 15,067 | 7,838 | ||||||||
| Non-interest income: | |||||||||||
| Trust and investment management fees | 4,660 | 4,728 | 4,705 | ||||||||
| Net gain on mortgage loans | 377 | 1,451 | 379 | ||||||||
| Net loss on loans held for sale | (222 | ) | — | — | |||||||
| Bank fees | 426 | 392 | 412 | ||||||||
| Risk management and insurance fees | 1,139 | 367 | 544 | ||||||||
| Income on company-owned life insurance | 112 | 108 | 101 | ||||||||
| Net loss on loans accounted for under the fair value option | (149 | ) | (233 | ) | (91 | ) | |||||
| Unrealized (loss) gain recognized on equity securities | (49 | ) | 24 | (2 | ) | ||||||
| Other | 165 | 135 | 33 | ||||||||
| Total non-interest income | 6,459 | 6,972 | 6,081 | ||||||||
| Total income before non-interest expense | 24,341 | 22,039 | 13,919 | ||||||||
| Non-interest expense: | |||||||||||
| Salaries and employee benefits | 11,237 | 11,439 | 9,988 | ||||||||
| Occupancy and equipment | 2,100 | 2,126 | 1,937 | ||||||||
| Professional services | 1,821 | 1,893 | 1,990 | ||||||||
| Technology and information systems | 1,073 | 1,045 | 928 | ||||||||
| Data processing | 1,029 | 1,101 | 1,189 | ||||||||
| Marketing | 397 | 374 | 415 | ||||||||
| Amortization of other intangible assets | 56 | 57 | 62 | ||||||||
| Other | 2,714 | 1,333 | 1,767 | ||||||||
| Total non-interest expense | 20,427 | 19,368 | 18,276 | ||||||||
| Income/(loss) before income taxes | 3,914 | 2,671 | (4,357 | ) | |||||||
| Income tax expense/(benefit) expense | 1,166 | 537 | (1,138 | ) | |||||||
| Net income/(loss) available to common shareholders | $ | 2,748 | $ | 2,134 | $ | (3,219 | ) | ||||
| Earnings (loss) per common share: | |||||||||||
| Basic | $ | 0.28 | $ | 0.22 | $ | (0.34 | ) | ||||
| Diluted | 0.28 | 0.22 | (0.34 | ) | |||||||
First Western Financial, Inc.
Condensed Consolidated Balance Sheets (unaudited)
| December 31, | September 30, | December 31, | |||||||||
| (Dollars in thousands) | 2024 | 2024 | 2023 | ||||||||
| Assets | |||||||||||
| Cash and cash equivalents: | |||||||||||
| Cash and due from banks | $ | 9,770 | $ | 18,979 | $ | 7,284 | |||||
| Interest-bearing deposits in other financial institutions | 226,271 | 257,243 | 247,158 | ||||||||
| Total cash and cash equivalents | 236,041 | 276,222 | 254,442 | ||||||||
| Held-to-maturity debt securities (fair value of | 75,724 | 76,745 | 74,102 | ||||||||
| Correspondent bank stock, at cost | 5,864 | 5,746 | 7,155 | ||||||||
| Mortgage loans held for sale, at fair value | 25,455 | 12,324 | 7,254 | ||||||||
| Loans held for sale, at fair value | 251 | 473 | — | ||||||||
| Loans (includes | 2,425,565 | 2,383,199 | 2,530,915 | ||||||||
| Allowance for credit losses | (18,330 | ) | (18,796 | ) | (23,931 | ) | |||||
| Loans, net | 2,407,235 | 2,364,403 | 2,506,984 | ||||||||
| Premises and equipment, net | 24,129 | 24,350 | 25,256 | ||||||||
| Accrued interest receivable | 10,364 | 10,455 | 11,428 | ||||||||
| Accounts receivable | 4,763 | 4,864 | 5,095 | ||||||||
| Other receivables | 5,710 | 10,397 | 4,467 | ||||||||
| Other real estate owned, net | 35,929 | 37,036 | — | ||||||||
| Goodwill and other intangible assets, net | 31,627 | 31,684 | 31,854 | ||||||||
| Deferred tax assets, net | 3,079 | 4,075 | 6,407 | ||||||||
| Company-owned life insurance | 16,961 | 16,849 | 16,530 | ||||||||
| Other assets | 35,905 | 36,325 | 24,488 | ||||||||
| Total assets | $ | 2,919,037 | $ | 2,911,948 | $ | 2,975,462 | |||||
| Liabilities | |||||||||||
| Deposits: | |||||||||||
| Noninterest-bearing | $ | 375,603 | $ | 473,576 | $ | 482,579 | |||||
| Interest-bearing | 2,138,606 | 2,029,478 | 2,046,460 | ||||||||
| Total deposits | 2,514,209 | 2,503,054 | 2,529,039 | ||||||||
| Borrowings: | |||||||||||
| Federal Home Loan Bank and Federal Reserve borrowings | 57,038 | 62,373 | 125,711 | ||||||||
| Subordinated notes | 52,565 | 52,508 | 52,340 | ||||||||
| Accrued interest payable | 1,995 | 3,339 | 3,793 | ||||||||
| Other liabilities | 40,908 | 41,843 | 21,841 | ||||||||
| Total liabilities | 2,666,715 | 2,663,117 | 2,732,724 | ||||||||
| Shareholders’ Equity | |||||||||||
| Total shareholders’ equity | 252,322 | 248,831 | 242,738 | ||||||||
| Total liabilities and shareholders’ equity | $ | 2,919,037 | $ | 2,911,948 | $ | 2,975,462 | |||||
First Western Financial, Inc.
Consolidated Financial Summary (unaudited)
| December 31, | September 30, | December 31, | |||||||||
| (Dollars in thousands) | 2024 | 2024 | 2023 | ||||||||
| Loan Portfolio | |||||||||||
| Cash, Securities, and Other(1) | $ | 120,005 | $ | 116,856 | $ | 140,053 | |||||
| Consumer and Other | 17,333 | 14,978 | 31,296 | ||||||||
| Construction and Development | 315,686 | 301,542 | 347,515 | ||||||||
| 1-4 Family Residential | 960,354 | 920,709 | 925,984 | ||||||||
| Non-Owner Occupied CRE | 614,384 | 608,494 | 546,966 | ||||||||
| Owner Occupied CRE | 173,223 | 176,165 | 197,205 | ||||||||
| Commercial and Industrial | 220,501 | 239,660 | 336,842 | ||||||||
| Total | 2,421,486 | 2,378,404 | 2,525,861 | ||||||||
| Loans accounted for under the fair value option | 7,508 | 8,884 | 14,129 | ||||||||
| Total loans held for investment | 2,428,994 | 2,387,288 | 2,539,990 | ||||||||
| Deferred (fees) costs and unamortized premiums/(unaccreted discounts), net(2) | (3,429 | ) | (4,089 | ) | (9,075 | ) | |||||
| Loans (includes | $ | 2,425,565 | $ | 2,383,199 | $ | 2,530,915 | |||||
| Mortgage loans held for sale | 25,455 | 12,324 | 7,254 | ||||||||
| Loans held for sale | 251 | 473 | — | ||||||||
| Deposit Portfolio | |||||||||||
| Money market deposit accounts | $ | 1,513,605 | $ | 1,350,619 | $ | 1,386,149 | |||||
| Time deposits | 471,415 | 533,452 | 496,452 | ||||||||
| Interest checking accounts | 139,374 | 130,255 | 147,488 | ||||||||
| Savings accounts | 14,212 | 15,152 | 16,371 | ||||||||
| Total interest-bearing deposits | 2,138,606 | 2,029,478 | 2,046,460 | ||||||||
| Noninterest-bearing accounts | 375,603 | 473,576 | 482,579 | ||||||||
| Total deposits | $ | 2,514,209 | $ | 2,503,054 | $ | 2,529,039 | |||||
____________________
(1) Includes PPP loans of
(2) Includes fair value adjustments on loans held for investment accounted for under the fair value option.
First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
| As of or for the Three Months Ended | |||||||||||
| December 31, | September 30, | December 31, | |||||||||
| (Dollars in thousands) | 2024 | 2024 | 2023 | ||||||||
| Average Balance Sheets | |||||||||||
| Assets | |||||||||||
| Interest-earning assets: | |||||||||||
| Interest-bearing deposits in other financial institutions | $ | 236,152 | $ | 129,629 | $ | 104,789 | |||||
| Debt securities | 77,464 | 79,007 | 76,331 | ||||||||
| Correspondent bank stock | 5,738 | 6,281 | 7,576 | ||||||||
| Loans | 2,386,070 | 2,429,927 | 2,521,532 | ||||||||
| Mortgage loans held for sale | 26,623 | 18,423 | 9,915 | ||||||||
| Loans held at fair value | 8,136 | 9,691 | 14,755 | ||||||||
| Total interest-earning assets | 2,740,183 | 2,672,958 | 2,734,898 | ||||||||
| Allowance for credit losses | (19,403 | ) | (27,236 | ) | (23,308 | ) | |||||
| Noninterest-earning assets | 181,186 | 161,072 | 126,132 | ||||||||
| Total assets | $ | 2,901,966 | $ | 2,806,794 | $ | 2,837,722 | |||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Interest-bearing liabilities: | |||||||||||
| Interest-bearing deposits | $ | 2,095,204 | $ | 2,007,265 | $ | 1,914,856 | |||||
| FHLB and Federal Reserve borrowings | 54,428 | 62,589 | 139,316 | ||||||||
| Subordinated notes | 52,528 | 52,470 | 52,299 | ||||||||
| Total interest-bearing liabilities | 2,202,160 | 2,122,324 | 2,106,471 | ||||||||
| Noninterest-bearing liabilities: | |||||||||||
| Noninterest-bearing deposits | 403,433 | 395,755 | 456,787 | ||||||||
| Other liabilities | 45,889 | 40,089 | 25,387 | ||||||||
| Total noninterest-bearing liabilities | 449,322 | 435,844 | 482,174 | ||||||||
| Total shareholders’ equity | 250,484 | 248,626 | 249,077 | ||||||||
| Total liabilities and shareholders’ equity | $ | 2,901,966 | $ | 2,806,794 | $ | 2,837,722 | |||||
| Yields/Cost of funds (annualized) | |||||||||||
| Interest-bearing deposits in other financial institutions | 4.85 | % | 5.38 | % | 5.11 | % | |||||
| Debt securities | 3.57 | 3.57 | 3.12 | ||||||||
| Correspondent bank stock | 8.94 | 8.49 | 8.43 | ||||||||
| Loans | 5.65 | 5.74 | 5.58 | ||||||||
| Loan held at fair value | 5.77 | 5.79 | 6.91 | ||||||||
| Mortgage loans held for sale | 6.02 | 5.87 | 6.60 | ||||||||
| Total interest-earning assets | 5.53 | 5.67 | 5.51 | ||||||||
| Interest-bearing deposits | 3.78 | 4.19 | 3.94 | ||||||||
| Total deposits | 3.17 | 3.50 | 3.18 | ||||||||
| FHLB and Federal Reserve borrowings | 3.96 | 4.03 | 5.36 | ||||||||
| Subordinated notes | 5.59 | 5.60 | 5.63 | ||||||||
| Total interest-bearing liabilities | 3.83 | 4.22 | 4.08 | ||||||||
| Net interest margin | 2.45 | 2.32 | 2.37 | ||||||||
| Net interest rate spread | 1.70 | 1.45 | 1.43 | ||||||||
First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
| As of or for the Three Months Ended | |||||||||||
| December 31, | September 30, | December 31, | |||||||||
| (Dollars in thousands, except share and per share amounts) | 2024 | 2024 | 2023 | ||||||||
| Asset Quality | |||||||||||
| Non-performing loans | $ | 13,052 | $ | 15,031 | $ | 51,125 | |||||
| Non-performing assets | 48,981 | 52,067 | 51,125 | ||||||||
| Net charge-offs (recoveries) | (270 | ) | 9,319 | 8,595 | |||||||
| Non-performing loans to total loans | 0.54 | % | 0.63 | % | 2.02 | % | |||||
| Non-performing assets to total assets | 1.68 | 1.79 | 1.72 | ||||||||
| Allowance for credit losses to non-performing loans | 140.44 | 125.05 | 46.81 | ||||||||
| Allowance for credit losses to total loans | 0.76 | 0.79 | 0.95 | ||||||||
| Allowance for credit losses to adjusted loans(1) | 0.76 | 0.79 | 0.95 | ||||||||
| Net charge-offs (recoveries) to average loans | (0.01 | ) | 0.38 | 0.34 | |||||||
| Assets Under Management | $ | 7,321,147 | $ | 7,465,757 | $ | 6,752,981 | |||||
| Market Data | |||||||||||
| Book value per share at period end | $ | 26.10 | $ | 25.75 | $ | 25.33 | |||||
| Tangible book value per common share(1) | 22.83 | 22.47 | 22.01 | ||||||||
| Weighted average outstanding shares, basic | 9,665,621 | 9,663,131 | 9,572,582 | ||||||||
| Weighted average outstanding shares, diluted | 9,794,797 | 9,825,515 | 9,572,582 | ||||||||
| Shares outstanding at period end | 9,667,142 | 9,664,101 | 9,581,183 | ||||||||
| Consolidated Capital | |||||||||||
| Tier 1 capital to risk-weighted assets | 10.07 | % | 10.06 | % | 9.40 | % | |||||
| CET1 to risk-weighted assets | 10.07 | 10.06 | 9.40 | ||||||||
| Total capital to risk-weighted assets | 13.12 | 13.19 | 12.59 | ||||||||
| Tier 1 capital to average assets | 7.88 | 8.04 | 7.77 | ||||||||
| Bank Capital | |||||||||||
| Tier 1 capital to risk-weighted assets | 11.41 | % | 11.39 | % | 10.54 | % | |||||
| CET1 to risk-weighted assets | 11.41 | 11.39 | 10.54 | ||||||||
| Total capital to risk-weighted assets | 12.10 | 12.13 | 11.45 | ||||||||
| Tier 1 capital to average assets | 8.94 | 9.11 | 8.71 | ||||||||
____________________
(1) Represents a Non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
Reconciliations of Non-GAAP Financial Measures
| As of or for the Three Months Ended | |||||||||||
| December 31, | September 30, | December 31, | |||||||||
| (Dollars in thousands, except share and per share amounts) | 2024 | 2024 | 2023 | ||||||||
| Tangible Common | |||||||||||
| Total shareholders' equity | $ | 252,322 | $ | 248,831 | $ | 242,738 | |||||
| Less: goodwill and other intangibles, net | 31,627 | 31,684 | 31,854 | ||||||||
| Tangible common equity | $ | 220,695 | $ | 217,147 | $ | 210,884 | |||||
| Common shares outstanding, end of period | 9,667,142 | 9,664,101 | 9,581,183 | ||||||||
| Tangible common book value per share | $ | 22.83 | $ | 22.47 | $ | 22.01 | |||||
| Net income/(loss) available to common shareholders | 2,748 | 2,134 | (3,219 | ) | |||||||
| Return on tangible common equity (annualized) | 4.98 | % | 3.93 | % | (6.11)% | ||||||
| Efficiency | |||||||||||
| Non-interest expense | $ | 20,427 | $ | 19,368 | $ | 18,276 | |||||
| Less: OREO expenses and write-downs | 1,222 | 35 | — | ||||||||
| Adjusted non-interest expense | $ | 19,205 | $ | 19,333 | $ | 18,276 | |||||
| Total income before non-interest expense | $ | 24,341 | $ | 22,039 | $ | 13,919 | |||||
| Less: unrealized (loss)/gain recognized on equity securities | (49 | ) | 24 | (2 | ) | ||||||
| Less: net loss on loans accounted for under the fair value option | (149 | ) | (233 | ) | (91 | ) | |||||
| Less: net loss on loans held for sale | (222 | ) | — | — | |||||||
| Plus: (release of) provision for credit losses | (974 | ) | 501 | 8,493 | |||||||
| Gross revenue | $ | 23,787 | $ | 22,749 | $ | 22,505 | |||||
| Efficiency ratio | 80.74 | % | 84.98 | % | 81.21 | % | |||||
| Allowance for Credit Loss to Adjusted Loans | |||||||||||
| Total loans held for investment | $ | 2,428,994 | $ | 2,387,288 | $ | 2,539,990 | |||||
| Less: PPP loans | 2,087 | 2,603 | 4,343 | ||||||||
| Less: loans accounted for under fair value | 7,508 | 8,884 | 14,129 | ||||||||
| Adjusted loans | $ | 2,419,399 | $ | 2,375,801 | $ | 2,521,518 | |||||
| Allowance for credit losses | $ | 18,330 | $ | 18,796 | $ | 23,931 | |||||
| Allowance for credit losses to adjusted loans | 0.76 | % | 0.79 | % | 0.95 | % | |||||
FAQ
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