First Western Reports Second Quarter 2024 Financial Results
First Western Financial (NASDAQ: MYFW) reported Q2 2024 financial results with net income of $1.1 million, or $0.11 per diluted share. This compares to $2.5 million, or $0.26 per share, in Q1 2024. Key highlights include:
- Book value per share increased 0.1% to $25.55
- Tangible book value per share rose 0.2% to $22.27
- Net interest margin slightly improved to 2.35%
- Total capital ratio strengthened to 13.44%
CEO Scott C. Wylie noted the company's focus on prudent risk management and conservative loan production. Despite a relatively flat balance sheet, First Western saw improvements in loans, deposits, and net interest margin towards the end of the quarter. The company expects higher profitability in H2 2024 while continuing investments in talent and technology.
First Western Financial (NASDAQ: MYFW) ha riportato i risultati finanziari del Q2 2024 con un utile netto di 1,1 milioni di dollari, pari a 0,11 dollari per azione diluita. Questo si confronta con i 2,5 milioni di dollari, ossia 0,26 dollari per azione, nel Q1 2024. I punti salienti includono:
- Il valore contabile per azione è aumentato dello 0,1% a 25,55 dollari
- Il valore contabile tangibile per azione è aumentato dello 0,2% a 22,27 dollari
- Il margine di interesse netto è migliorato leggermente al 2,35%
- Il rapporto di capitale totale è stato rafforzato al 13,44%
Il CEO Scott C. Wylie ha sottolineato l'impegno della società nella gestione prudente dei rischi e nella produzione conservativa di prestiti. Nonostante un bilancio relativamente stabile, First Western ha visto miglioramenti in prestiti, depositi e margine di interesse netto verso la fine del trimestre. L'azienda prevede una maggiore redditività nel H2 2024 continuando a investire in talenti e tecnologia.
First Western Financial (NASDAQ: MYFW) reportó los resultados financieros del Q2 2024 con un ingreso neto de 1,1 millones de dólares, o 0,11 dólares por acción diluida. Esto se compara con 2,5 millones de dólares, o 0,26 dólares por acción, en el Q1 2024. Los aspectos destacados incluyen:
- El valor contable por acción aumentó un 0,1% a 25,55 dólares
- El valor contable tangible por acción aumentó un 0,2% a 22,27 dólares
- El margen de interés neto mejoró ligeramente al 2,35%
- El ratio de capital total se fortaleció al 13,44%
El CEO Scott C. Wylie destacó el enfoque de la empresa en la gestión prudente de riesgos y en la producción conservadora de préstamos. A pesar de un balance relativamente estable, First Western vio mejoras en préstamos, depósitos y margen de interés neto hacia el final del trimestre. La compañía espera una mayor rentabilidad en el H2 2024 mientras continúa invirtiendo en talento y tecnología.
퍼스트 웨스턴 파이낸셜(주식 코드: MYFW)이 2024년 2분기 재무 결과를 발표했습니다. 순이익은 110만 달러, 즉 희석 주당 0.11달러입니다. 이는 2024년 1분기의 250만 달러, 즉 주당 0.26달러와 비교됩니다. 주요 하이라이트는 다음과 같습니다:
- 주당 장부가치가 0.1% 증가하여 25.55달러
- 주당 실질 장부가치가 0.2% 증가하여 22.27달러
- 순이자 마진이 2.35%로 약간 개선되었습니다
- 총 자본 비율이 13.44%로 강화되었습니다
CEO인 스콧 C. 와일리는 회사가 신중한 위험 관리와 보수적인 대출 생산에 집중하고 있다고 언급했습니다. 비교적 평탄한 대차대조표에도 불구하고, 퍼스트 웨스턴은 분기 말에 대출, 예금 및 순이자 마진에서 개선을 보았습니다. 회사는 2024년 하반기 동안 수익성을 높일 것으로 예상하며 인재와 기술에 대한 투자를 계속할 것입니다.
First Western Financial (NASDAQ: MYFW) a annoncé ses résultats financiers pour le 2ème trimestre 2024, avec un bénéfice net de 1,1 million de dollars, soit 0,11 dollar par action diluée. Cela se compare à 2,5 millions de dollars, soit 0,26 dollar par action, pour le 1er trimestre 2024. Les points forts incluent :
- La valeur comptable par action a augmenté de 0,1 % à 25,55 dollars
- La valeur comptable tangible par action a progressé de 0,2 % à 22,27 dollars
- La marge d'intérêt nette s'est légèrement améliorée à 2,35 %
- Le ratio de capital total a été renforcé à 13,44 %
Le PDG Scott C. Wylie a noté que l'entreprise se concentre sur une gestion prudente des risques et une production de prêts conservatrice. Malgré un bilan relativement stable, First Western a observé des améliorations dans les prêts, les dépôts et la marge d'intérêt nette vers la fin du trimestre. L'entreprise prévoit une rentabilité accrue au S2 2024 tout en poursuivant ses investissements dans le talent et la technologie.
First Western Financial (NASDAQ: MYFW) hat die finanziellen Ergebnisse des Q2 2024 veröffentlicht, mit einem Nettoeinkommen von 1,1 Millionen US-Dollar, was 0,11 US-Dollar je verwässerter Aktie entspricht. Dies steht im Vergleich zu 2,5 Millionen US-Dollar oder 0,26 US-Dollar pro Aktie im Q1 2024. Die wichtigsten Highlights umfassen:
- Der Buchwert pro Aktie stieg um 0,1 % auf 25,55 US-Dollar
- Der tangible Buchwert pro Aktie stieg um 0,2 % auf 22,27 US-Dollar
- Die Nettozinsspanne hat sich leicht auf 2,35 % verbessert
- Das Gesamtkapitalverhältnis wurde auf 13,44 % gestärkt
CEO Scott C. Wylie betonte, dass sich das Unternehmen auf ein umsichtiges Risikomanagement und eine konservative Kreditvergabe konzentriert. Trotz eines relativ stabilen Bilanzsatzes verzeichnete First Western gegen Ende des Quartals Verbesserungen bei Krediten, Einlagen und Nettomargen. Das Unternehmen erwartet im H2 2024 eine höhere Rentabilität und setzt seine Investitionen in Talente und Technologie fort.
- Slight increase in net interest margin from 2.34% to 2.35%
- Total capital to risk-weighted assets ratio improved from 13.15% to 13.44%
- Tangible book value per share increased 0.2% to $22.27
- Non-interest income increased 76.0% year-over-year to $7.0 million
- Assets Under Management (AUM) increased by $0.51 million compared to June 30, 2023
- Net income decreased from $2.5 million in Q1 2024 to $1.1 million in Q2 2024
- Diluted earnings per share dropped from $0.26 in Q1 2024 to $0.11 in Q2 2024
- Total loans held for investment decreased 0.8% quarter-over-quarter
- Total deposits decreased from $2.53 billion to $2.41 billion quarter-over-quarter
- Non-performing assets increased to 1.68% of total assets, up from 1.57% in Q1 2024
First Western Financial's second quarter 2024 results indicate a mixed performance. A slight increase in book value and tangible book value per share reflects a modest strengthening of the company’s equity position. However, the decline in net income and diluted earnings per share from Q1 2024 poses concerns. This is primarily attributed to an increased provision for credit losses and declining net interest income.
Despite the marginal increase in net interest margin, the significant year-over-year decrease in net interest income signifies heightened pressure from rising deposit costs. The increase in non-performing assets and the higher provision for credit losses suggest potential risks in loan quality, which could further impact future profitability.
Overall, short-term performance may be under pressure due to these challenges, but the strategic emphasis on maintaining a strong balance sheet and disciplined expense control could offer some stability and potential for improved profitability in the longer term.
From a market perspective, First Western Financial’s Q2 2024 results show a cautious approach reflected in the stabilized net interest margin and focused risk management strategies. The modest increases in both loans and deposits towards the end of the quarter are positive signs, indicating some underlying growth momentum.
The commentary from CEO Scott Wylie about enhancing banking talent and strategic investments in technology is promising for long-term growth. However, the decrease in total deposits and the increase in non-performing assets may weigh on investor sentiment in the short term. The trend in non-interest income, particularly from wealth management and mortgage banking, could be a important area to watch as it has shown strong contributions despite overall revenue declines.
For investors, the key takeaway is the balance between cautious short-term performance and long-term strategic potential.
First Western Financial's Q2 2024 financial results highlight some concerning trends in credit risk management. The significant increase in provision for credit losses, from $72K in Q1 2024 to $2.33M in Q2 2024, combined with the rise in non-performing assets, indicates escalating credit quality issues. This increased provision reflects the company's response to potential defaults and deteriorating loan conditions.
The foreclosure on properties and the addition of substantial non-performing loans underscore the need for vigilant monitoring. The substantial increase in non-performing assets from the previous year points to underlying vulnerabilities that could impact the company’s financial stability if not adequately managed.
Investors should be cautious about these credit quality trends, as they significantly impact the company's risk profile and potential future earnings.
Second Quarter 2024 Summary
- Book value per common share increased
0.1% from$25.52 in Q1 2024 to$25.55 in Q2 2024. Tangible book value per common share(1) increased0.2% from$22.21 in Q1 2024 to$22.27 in Q2 2024 - Net interest margin stabilized during the quarter, with a slight increase of 1 basis point from
2.34% in Q1 2024 to2.35% in Q2 2024 - Net income available to common shareholders of
$1.1 million in Q2 2024, compared to$2.5 million in Q1 2024 - Diluted earnings per share of
$0.11 in Q2 2024, compared to$0.26 in Q1 2024 - Total capital to risk-weighted assets ratio of
13.44% in Q2 2024, compared to13.15% in Q1 2024
DENVER, July 23, 2024 (GLOBE NEWSWIRE) -- First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the second quarter ended June 30, 2024.
Net income available to common shareholders was
Scott C. Wylie, CEO of First Western, commented, “During the second quarter, we continued to prioritize prudent risk management and a conservative approach to new loan production, which resulted in our balance sheet remaining relatively flat in the quarter. We also continued to execute well on our strategic priorities including maintaining disciplined expense control, adding new deposit relationships, and generating strong contributions of non-interest income from our wealth management and mortgage banking businesses, which combined with our prudent balance sheet management resulted in a further increase in our tangible book value per share. Our performance grew stronger as we moved through the quarter with increases in both loans and deposits in June and an increase in our net interest margin.
“We are benefiting from the strength of the franchise we have built to upgrade our banking talent throughout our markets as we fill open positions. These new additions, along with strong execution across our entire organization on our business development initiatives, are positively impacting our pipelines in all areas of our business including loans, deposits, mortgage banking, and investment management. Based on the positive trends we are currently seeing, we expect to generate a higher level of profitability in the second half of the year, while also continuing to make investments in talent and technology that will further enhance our ability to generate profitable growth in the future,” said Mr. Wylie.
| For the Three Months Ended | ||||||||||||
| June 30, | March 31, | June 30, | ||||||||||
| (Dollars in thousands, except per share data) | 2024 | 2024 | 2023 | |||||||||
| Earnings Summary | ||||||||||||
| Net interest income | $ | 15,778 | $ | 16,070 | $ | 18,435 | ||||||
| Provision for credit losses | 2,334 | 72 | 1,843 | |||||||||
| Total non-interest income | 6,972 | 7,277 | 3,962 | |||||||||
| Total non-interest expense | 19,001 | 19,696 | 18,519 | |||||||||
| Income before income taxes | 1,415 | 3,579 | 2,035 | |||||||||
| Income tax expense | 339 | 1,064 | 529 | |||||||||
| Net income available to common shareholders | 1,076 | 2,515 | 1,506 | |||||||||
| Basic earnings per common share | 0.11 | 0.26 | 0.16 | |||||||||
| Diluted earnings per common share | 0.11 | 0.26 | 0.16 | |||||||||
| Return on average assets (annualized) | 0.15 | % | 0.35 | % | 0.21 | % | ||||||
| Return on average shareholders' equity (annualized) | 1.73 | 4.10 | 2.49 | |||||||||
| Return on tangible common equity (annualized)(1) | 2.00 | 4.71 | 2.86 | |||||||||
| Net interest margin | 2.35 | 2.34 | 2.73 | |||||||||
| Efficiency ratio(1) | 82.13 | 83.44 | 74.48 | |||||||||
| (1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure. | ||||||||||||
Operating Results for the Second Quarter 2024
Revenue
Total income before non-interest expense was
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP 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 second quarter of 2024 was
Net Interest Margin
Net interest margin for the second quarter of 2024 increased 1 basis point to
The yield on interest-earning assets increased 9 basis points to
Relative to the second quarter of 2023, net interest margin decreased from
Non-interest Income
Non-interest income for the second quarter of 2024 was
Relative to the second quarter of 2023, non-interest income increased
Non-interest Expense
Non-interest expense for the second quarter of 2024 was
Relative to the second 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 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 during the second quarter to
Credit Quality
Non-performing assets totaled
During the second quarter of 2024 the Company recorded a provision expense of
Capital
As of June 30, 2024, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of June 30, 2024, the Bank was classified as “well capitalized,” as summarized in the following table:
| June 30, 2024 | |||
| Consolidated Capital | |||
| Tier 1 capital to risk-weighted assets | 9.92 | % | |
| Common Equity Tier 1 (“CET1”) to risk-weighted assets | 9.92 | ||
| Total capital to risk-weighted assets | 13.44 | ||
| Tier 1 capital to average assets | 7.91 | ||
| Bank Capital | |||
| Tier 1 capital to risk-weighted assets | 11.22 | % | |
| CET1 to risk-weighted assets | 11.22 | ||
| Total capital to risk-weighted assets | 12.35 | ||
| Tier 1 capital to average assets | 8.95 | ||
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 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 Wednesday, July 24, 2024. Telephone access: https://register.vevent.com/register/BI9009534197b84a16957a4d26aa92a1fe.
A slide presentation relating to the second 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 investment 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 | ||||||||||||
| June 30, | March 31, | June 30, | ||||||||||
| (Dollars in thousands, except per share amounts) | 2024 | 2024 | 2023 | |||||||||
| Interest and dividend income: | ||||||||||||
| Loans, including fees | $ | 35,275 | $ | 35,139 | $ | 33,583 | ||||||
| Loans accounted for under the fair value option | 168 | 209 | 351 | |||||||||
| Investment securities | 651 | 603 | 627 | |||||||||
| Interest-bearing deposits in other financial institutions | 1,855 | 2,352 | 1,666 | |||||||||
| Dividends, restricted stock | 105 | 95 | 145 | |||||||||
| Total interest and dividend income | 38,054 | 38,398 | 36,372 | |||||||||
| Interest expense: | ||||||||||||
| Deposits | 20,848 | 20,622 | 15,864 | |||||||||
| Other borrowed funds | 1,428 | 1,706 | 2,073 | |||||||||
| Total interest expense | 22,276 | 22,328 | 17,937 | |||||||||
| Net interest income | 15,778 | 16,070 | 18,435 | |||||||||
| Less: provision for credit losses | 2,334 | 72 | 1,843 | |||||||||
| Net interest income, after provision for credit losses | 13,444 | 15,998 | 16,592 | |||||||||
| Non-interest income: | ||||||||||||
| Trust and investment management fees | 4,875 | 4,930 | 4,602 | |||||||||
| Net gain on mortgage loans | 1,820 | 1,264 | 774 | |||||||||
| Net gain on loans held for sale | — | 117 | — | |||||||||
| Bank fees | 327 | 891 | 591 | |||||||||
| Risk management and insurance fees | 109 | 49 | 103 | |||||||||
| Income on company-owned life insurance | 106 | 105 | 91 | |||||||||
| Net loss on loans accounted for under the fair value option | (315 | ) | (302 | ) | (1,124 | ) | ||||||
| Unrealized loss recognized on equity securities | (2 | ) | (6 | ) | (11 | ) | ||||||
| Other | 52 | 229 | (1,064 | ) | ||||||||
| Total non-interest income | 6,972 | 7,277 | 3,962 | |||||||||
| Total income before non-interest expense | 20,416 | 23,275 | 20,554 | |||||||||
| Non-interest expense: | ||||||||||||
| Salaries and employee benefits | 11,097 | 11,267 | 11,148 | |||||||||
| Occupancy and equipment | 2,080 | 1,976 | 1,939 | |||||||||
| Professional services | 1,826 | 2,411 | 1,858 | |||||||||
| Technology and information systems | 1,042 | 1,010 | 831 | |||||||||
| Data processing | 1,101 | 948 | 1,052 | |||||||||
| Marketing | 243 | 194 | 379 | |||||||||
| Amortization of other intangible assets | 56 | 57 | 62 | |||||||||
| Other | 1,556 | 1,833 | 1,250 | |||||||||
| Total non-interest expense | 19,001 | 19,696 | 18,519 | |||||||||
| Income before income taxes | 1,415 | 3,579 | 2,035 | |||||||||
| Income tax expense | 339 | 1,064 | 529 | |||||||||
| Net income available to common shareholders | $ | 1,076 | $ | 2,515 | $ | 1,506 | ||||||
| Earnings per common share: | ||||||||||||
| Basic | $ | 0.11 | $ | 0.26 | $ | 0.16 | ||||||
| Diluted | 0.11 | 0.26 | 0.16 | |||||||||
| First Western Financial, Inc. Condensed Consolidated Balance Sheets (unaudited) | ||||||||||||
| June 30, | March 31, | June 30, | ||||||||||
| (Dollars in thousands) | 2024 | 2024 | 2023 | |||||||||
| Assets | ||||||||||||
| Cash and cash equivalents: | ||||||||||||
| Cash and due from banks | $ | 6,374 | $ | 8,136 | $ | 6,285 | ||||||
| Interest-bearing deposits in other financial institutions | 239,425 | 249,753 | 291,283 | |||||||||
| Total cash and cash equivalents | 245,799 | 257,889 | 297,568 | |||||||||
| Held-to-maturity securities (fair value of respectively), net of allowance for credit losses of | 78,927 | 72,303 | 77,469 | |||||||||
| Correspondent bank stock, at cost | 10,804 | 4,461 | 13,518 | |||||||||
| Mortgage loans held for sale, at fair value | 26,856 | 10,470 | 19,746 | |||||||||
| Loans (includes respectively) | 2,456,063 | 2,475,524 | 2,495,582 | |||||||||
| Allowance for credit losses | (27,319 | ) | (24,630 | ) | (22,044 | ) | ||||||
| Loans, net | 2,428,744 | 2,450,894 | 2,473,538 | |||||||||
| Premises and equipment, net | 24,657 | 24,869 | 25,473 | |||||||||
| Accrued interest receivable | 11,339 | 11,919 | 11,135 | |||||||||
| Accounts receivable | 5,118 | 4,980 | 5,116 | |||||||||
| Other receivables | 4,875 | 5,254 | 3,331 | |||||||||
| Other real estate owned, net | 11,421 | — | — | |||||||||
| Goodwill and other intangible assets, net | 31,741 | 31,797 | 31,977 | |||||||||
| Deferred tax assets, net | 6,123 | 5,695 | 7,202 | |||||||||
| Company-owned life insurance | 16,741 | 16,635 | 16,333 | |||||||||
| Other assets | 34,410 | 35,051 | 23,240 | |||||||||
| Total assets | $ | 2,937,555 | $ | 2,932,217 | $ | 3,005,646 | ||||||
| Liabilities | ||||||||||||
| Deposits: | ||||||||||||
| Noninterest-bearing | $ | 396,702 | $ | 434,236 | $ | 514,241 | ||||||
| Interest-bearing | 2,014,190 | 2,097,734 | 1,861,153 | |||||||||
| Total deposits | 2,410,892 | 2,531,970 | 2,375,394 | |||||||||
| Borrowings: | ||||||||||||
| Federal Home Loan Bank and Federal Reserve borrowings | 191,505 | 69,484 | 312,600 | |||||||||
| Subordinated notes | 52,451 | 52,397 | 52,223 | |||||||||
| Accrued interest payable | 2,243 | 2,415 | 1,788 | |||||||||
| Other liabilities | 33,589 | 30,423 | 21,399 | |||||||||
| Total liabilities | 2,690,680 | 2,686,689 | 2,763,404 | |||||||||
| Shareholders’ Equity | ||||||||||||
| Total shareholders’ equity | 246,875 | 245,528 | 242,242 | |||||||||
| Total liabilities and shareholders’ equity | $ | 2,937,555 | $ | 2,932,217 | $ | 3,005,646 | ||||||
| First Western Financial, Inc. Consolidated Financial Summary (unaudited) | ||||||||||||
| June 30, | March 31, | June 30, | ||||||||||
| (Dollars in thousands) | 2024 | 2024 | 2023 | |||||||||
| Loan Portfolio | ||||||||||||
| Cash, Securities, and Other(1) | $ | 143,720 | $ | 151,178 | $ | 150,679 | ||||||
| Consumer and Other | 15,645 | 18,556 | 21,866 | |||||||||
| Construction and Development | 309,146 | 333,284 | 313,227 | |||||||||
| 1-4 Family Residential | 904,569 | 910,129 | 878,670 | |||||||||
| Non-Owner Occupied CRE | 609,790 | 562,862 | 561,880 | |||||||||
| Owner Occupied CRE | 189,353 | 194,338 | 218,651 | |||||||||
| Commercial and Industrial | 277,973 | 297,573 | 338,679 | |||||||||
| Total | 2,450,196 | 2,467,920 | 2,483,652 | |||||||||
| Loans accounted for under the fair value option | 10,494 | 12,276 | 18,274 | |||||||||
| Total loans held for investment | 2,460,690 | 2,480,196 | 2,501,926 | |||||||||
| Deferred (fees) costs and unamortized premiums/(unaccreted discounts), net(2) | (4,627 | ) | (4,672 | ) | (6,344 | ) | ||||||
| Loans (includes respectively) | $ | 2,456,063 | $ | 2,475,524 | $ | 2,495,582 | ||||||
| Mortgage loans held for sale | 26,856 | 10,470 | 19,746 | |||||||||
| Deposit Portfolio | ||||||||||||
| Money market deposit accounts | $ | 1,342,753 | $ | 1,503,598 | $ | 1,297,732 | ||||||
| Time deposits | 519,597 | 442,834 | 376,147 | |||||||||
| Negotiable order of withdrawal accounts | 135,759 | 132,415 | 168,537 | |||||||||
| Savings accounts | 16,081 | 18,887 | 18,737 | |||||||||
| Total interest-bearing deposits | 2,014,190 | 2,097,734 | 1,861,153 | |||||||||
| Noninterest-bearing accounts | 396,702 | 434,236 | 514,241 | |||||||||
| Total deposits | $ | 2,410,892 | $ | 2,531,970 | $ | 2,375,394 | ||||||
| (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 | ||||||||||||
| June 30, | March 31, | June 30, | ||||||||||
| (Dollars in thousands) | 2024 | 2024 | 2023 | |||||||||
| Average Balance Sheets | ||||||||||||
| Assets | ||||||||||||
| Interest-earning assets: | ||||||||||||
| Interest-bearing deposits in other financial institutions | $ | 141,600 | $ | 177,523 | $ | 135,757 | ||||||
| Investment securities | 75,461 | 74,666 | 80,106 | |||||||||
| Correspondent bank stock | 4,801 | 4,451 | 8,844 | |||||||||
| Loans | 2,443,937 | 2,490,300 | 2,451,762 | |||||||||
| Mortgage loans held for sale | 20,254 | 6,752 | 15,841 | |||||||||
| Loans held at fair value | 11,314 | 13,134 | 19,825 | |||||||||
| Total interest-earning assets | 2,697,367 | 2,766,826 | 2,712,135 | |||||||||
| Allowance for credit losses | (24,267 | ) | (23,974 | ) | (20,077 | ) | ||||||
| Noninterest-earning assets | 143,514 | 124,144 | 124,561 | |||||||||
| Total assets | $ | 2,816,614 | $ | 2,866,996 | $ | 2,816,619 | ||||||
| Liabilities and Shareholders’ Equity | ||||||||||||
| Interest-bearing liabilities: | ||||||||||||
| Interest-bearing deposits | $ | 2,001,691 | $ | 2,008,246 | $ | 1,847,788 | ||||||
| FHLB and Federal Reserve borrowings | 67,196 | 92,195 | 123,578 | |||||||||
| Subordinated notes | 52,414 | 52,360 | 52,186 | |||||||||
| Total interest-bearing liabilities | 2,121,301 | 2,152,801 | 2,023,552 | |||||||||
| Noninterest-bearing liabilities: | ||||||||||||
| Noninterest-bearing deposits | 412,741 | 446,457 | 527,562 | |||||||||
| Other liabilities | 34,051 | 22,250 | 23,850 | |||||||||
| Total noninterest-bearing liabilities | 446,792 | 468,707 | 551,412 | |||||||||
| Total shareholders’ equity | 248,521 | 245,488 | 241,655 | |||||||||
| Total liabilities and shareholders’ equity | $ | 2,816,614 | $ | 2,866,996 | $ | 2,816,619 | ||||||
| Yields/Cost of funds (annualized) | ||||||||||||
| Interest-bearing deposits in other financial institutions | 5.27 | % | 5.33 | % | 4.92 | % | ||||||
| Investment securities | 3.47 | 3.25 | 3.14 | |||||||||
| Correspondent bank stock | 8.80 | 8.58 | 6.58 | |||||||||
| Loans | 5.75 | 5.66 | 5.46 | |||||||||
| Loan held at fair value | 5.97 | 6.40 | 7.10 | |||||||||
| Mortgage loans held for sale | 6.83 | 6.79 | 5.82 | |||||||||
| Total interest-earning assets | 5.67 | 5.58 | 5.38 | |||||||||
| Interest-bearing deposits | 4.19 | 4.13 | 3.44 | |||||||||
| Total deposits | 3.47 | 3.38 | 2.68 | |||||||||
| FHLB and Federal Reserve borrowings | 4.14 | 4.23 | 4.42 | |||||||||
| Subordinated notes | 5.66 | 5.66 | 5.47 | |||||||||
| Total interest-bearing liabilities | 4.22 | 4.17 | 3.56 | |||||||||
| Net interest margin | 2.35 | 2.34 | 2.73 | |||||||||
| Net interest rate spread | 1.45 | 1.41 | 1.82 | |||||||||
| First Western Financial, Inc. Consolidated Financial Summary (unaudited) (continued) | ||||||||||||
| As of or for the Three Months Ended | ||||||||||||
| June 30, | March 31, | June 30, | ||||||||||
| (Dollars in thousands, except share and per share amounts) | 2024 | 2024 | 2023 | |||||||||
| Asset Quality | ||||||||||||
| Non-performing loans | $ | 37,909 | $ | 46,044 | $ | 10,273 | ||||||
| Non-performing assets | 49,330 | 46,044 | 10,273 | |||||||||
| Net (recoveries) charge-offs | (9 | ) | — | 8 | ||||||||
| Non-performing loans to total loans | 1.54 | % | 1.86 | % | 0.41 | % | ||||||
| Non-performing assets to total assets | 1.68 | 1.57 | 0.34 | |||||||||
| Allowance for credit losses to non-performing loans | 72.06 | 53.49 | 214.58 | |||||||||
| Allowance for credit losses to total loans | 1.11 | 1.00 | 0.89 | |||||||||
| Allowance for credit losses to adjusted loans(1) | 1.12 | 1.00 | 0.89 | |||||||||
| Net charge-offs to average loans | * | — | * | |||||||||
| Assets Under Management | $ | 7,011,796 | $ | 7,141,453 | $ | 6,503,964 | ||||||
| Market Data | ||||||||||||
| Book value per share at period end | 25.55 | 25.52 | 25.38 | |||||||||
| Tangible book value per common share(1) | 22.27 | 22.21 | 22.03 | |||||||||
| Weighted average outstanding shares, basic | 9,647,345 | 9,621,309 | 9,532,397 | |||||||||
| Weighted average outstanding shares, diluted | 9,750,667 | 9,710,764 | 9,686,401 | |||||||||
| Shares outstanding at period end | 9,660,549 | 9,621,309 | 9,545,071 | |||||||||
| Consolidated Capital | ||||||||||||
| Tier 1 capital to risk-weighted assets | 9.92 | % | 9.77 | % | 9.26 | % | ||||||
| CET1 to risk-weighted assets | 9.92 | 9.77 | 9.26 | |||||||||
| Total capital to risk-weighted assets | 13.44 | 13.15 | 12.41 | |||||||||
| Tier 1 capital to average assets | 7.91 | 7.73 | 7.80 | |||||||||
| Bank Capital | ||||||||||||
| Tier 1 capital to risk-weighted assets | 11.22 | 11.00 | 10.34 | |||||||||
| CET1 to risk-weighted assets | 11.22 | 11.00 | 10.34 | |||||||||
| Total capital to risk-weighted assets | 12.35 | 12.02 | 11.23 | |||||||||
| Tier 1 capital to average assets | 8.95 | 8.70 | 8.70 | |||||||||
| (1) Represents a Non-GAAP financial measure. See “Reconciliation of Non-GAAP Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure. | ||||||||||||
| * Value results in an immaterial amount. | ||||||||||||
| First Western Financial, Inc. Consolidated Financial Summary (unaudited) (continued) | ||||||||||||
| Reconciliations of Non-GAAP Financial Measures | ||||||||||||
| As of or for the Three Months Ended | ||||||||||||
| June 30, | March 31, | June 30, | ||||||||||
| (Dollars in thousands, except share and per share amounts) | 2024 | 2024 | 2023 | |||||||||
| Tangible Common | ||||||||||||
| Total shareholders' equity | $ | 246,875 | $ | 245,528 | $ | 242,242 | ||||||
| Less: goodwill and other intangibles, net | 31,741 | 31,797 | 31,977 | |||||||||
| Tangible common equity | $ | 215,134 | $ | 213,731 | $ | 210,265 | ||||||
| Common shares outstanding, end of period | 9,660,549 | 9,621,309 | 9,545,071 | |||||||||
| Tangible common book value per share | $ | 22.27 | $ | 22.21 | $ | 22.03 | ||||||
| Net income available to common shareholders | 1,076 | 2,515 | 1,506 | |||||||||
| Return on tangible common equity (annualized) | 2.00 | % | 4.71 | % | 2.86 | % | ||||||
| Efficiency | ||||||||||||
| Non-interest expense | $ | 19,001 | $ | 19,696 | $ | 18,519 | ||||||
| Less: amortization | 56 | 57 | 62 | |||||||||
| Adjusted non-interest expense | $ | 18,945 | $ | 19,639 | $ | 18,457 | ||||||
| Total income before non-interest expense | $ | 20,416 | $ | 23,275 | $ | 20,554 | ||||||
| Less: unrealized (loss)/gain recognized on equity securities | (2 | ) | (6 | ) | (11 | ) | ||||||
| Less: net loss on loans accounted for under the fair value option | (315 | ) | (302 | ) | (1,124 | ) | ||||||
| Less: impairment of contingent consideration assets | — | — | (1,249 | ) | ||||||||
| Less: net gain on loans held for sale at fair value | — | 117 | — | |||||||||
| Plus: provision for credit losses | 2,334 | 72 | 1,843 | |||||||||
| Gross revenue | $ | 23,067 | $ | 23,538 | $ | 24,781 | ||||||
| Efficiency ratio | 82.13 | % | 83.44 | % | 74.48 | % | ||||||
| Allowance for Credit Loss to Adjusted Loans | ||||||||||||
| Total loans held for investment | 2,460,690 | 2,480,196 | 2,501,926 | |||||||||
| Less: PPP loans | 3,129 | 3,779 | 5,558 | |||||||||
| Less: loans accounted for under fair value | 10,494 | 12,276 | 18,274 | |||||||||
| Adjusted loans | $ | 2,447,067 | $ | 2,464,141 | $ | 2,478,094 | ||||||
| Allowance for credit losses | $ | 27,319 | $ | 24,630 | $ | 22,044 | ||||||
| Allowance for credit losses to adjusted loans | 1.12 | % | 1.00 | % | 0.89 | % | ||||||
FAQ
What was First Western Financial's (MYFW) net income for Q2 2024?
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