First Western Reports Third Quarter 2024 Financial Results
First Western Financial (MYFW) reported Q3 2024 net income of $2.1 million, or $0.22 per diluted share, up from $1.1 million in Q2 2024 but down from $3.1 million in Q3 2023. Total deposits increased 3.7% to $2.50 billion, with noninterest-bearing deposits rising 19% to $474 million. The loan-to-deposit ratio improved to 95.2% from 101.9% in Q2. Net interest margin decreased to 2.32% from 2.35% in Q2. Assets Under Management increased to $7.47 billion, up from $7.01 billion in Q2 2024. The company maintained its well-capitalized status with a CET1 ratio of 10.06%.
First Western Financial (MYFW) ha riportato un reddito netto per il terzo trimestre del 2024 di 2,1 milioni di dollari, pari a 0,22 dollari per azione diluita, in aumento rispetto a 1,1 milioni di dollari nel secondo trimestre del 2024, ma in calo rispetto ai 3,1 milioni di dollari nel terzo trimestre del 2023. I depositi totali sono aumentati del 3,7% raggiungendo 2,50 miliardi di dollari, con i depositi non remunerativi in aumento del 19% a 474 milioni di dollari. Il rapporto prestiti-depositi è migliorato al 95,2% rispetto al 101,9% del secondo trimestre. Il margine di interesse netto è diminuito al 2,32% rispetto al 2,35% del secondo trimestre. Le attività in gestione sono aumentate a 7,47 miliardi di dollari, rispetto ai 7,01 miliardi di dollari del secondo trimestre del 2024. L'azienda ha mantenuto la sua buona capitalizzazione con un rapporto CET1 del 10,06%.
First Western Financial (MYFW) reportó un ingreso neto en el tercer trimestre de 2024 de 2.1 millones de dólares, o 0.22 dólares por acción diluida, un aumento desde 1.1 millones de dólares en el segundo trimestre de 2024, pero una disminución respecto a los 3.1 millones de dólares en el tercer trimestre de 2023. Los depósitos totales aumentaron un 3.7% a 2.50 mil millones de dólares, con depósitos no remunerativos que crecieron un 19% alcanzando 474 millones de dólares. La relación préstamo-depósito mejoró al 95.2% desde el 101.9% del segundo trimestre. El margen de interés neto disminuyó al 2.32% desde el 2.35% del segundo trimestre. Los activos bajo gestión aumentaron a 7.47 mil millones de dólares, en comparación con 7.01 mil millones de dólares en el segundo trimestre de 2024. La empresa mantuvo su estatus de bien capitalizada con un ratio CET1 del 10.06%.
퍼스트 웨스턴 파이낸셜 (MYFW)는 2024년 3분기 순이익으로 210만 달러, 즉 희석주당 0.22달러를 보고했으며, 이는 2024년 2분기 110만 달러에서 증가했지만 2023년 3분기 310만 달러에서 감소한 수치입니다. 총 예금은 25억 달러로 3.7% 증가했으며, 비이자성 예금은 19% 상승해 4억7400만 달러에 달했습니다. 대출 대비 예금 비율은 101.9%에서 95.2%로 개선되었습니다. 순이자 마진은 2.35%에서 2.32%로 줄어들었습니다. 운용 자산은 2024년 2분기 70억1000만 달러에서 74억7000만 달러로 증가했습니다. 이 회사는 CET1 비율이 10.06%로 양호한 자본 상태를 유지했습니다.
First Western Financial (MYFW) a déclaré un revenu net pour le troisième trimestre 2024 de 2,1 millions de dollars, soit 0,22 dollar par action diluée, en hausse par rapport à 1,1 million de dollars au deuxième trimestre 2024, mais en baisse par rapport à 3,1 millions de dollars au troisième trimestre 2023. Les dépôts totaux ont augmenté de 3,7 % atteignant 2,50 milliards de dollars, avec des dépôts non rémunérés en hausse de 19 % pour atteindre 474 millions de dollars. Le ratio prêt-dépot s'est amélioré à 95,2 % contre 101,9 % au deuxième trimestre. La marge d'intérêt nette a diminué à 2,32 % contre 2,35 % au deuxième trimestre. Les actifs sous gestion ont augmenté à 7,47 milliards de dollars, contre 7,01 milliards de dollars au deuxième trimestre 2024. L'entreprise a maintenu son statut bien capitalisé avec un ratio CET1 de 10,06 %.
First Western Financial (MYFW) meldete im dritten Quartal 2024 ein Nettoeinkommen von 2,1 Millionen Dollar, bzw. 0,22 Dollar pro verwässerter Aktie, was im Vergleich zu 1,1 Millionen Dollar im zweiten Quartal 2024 einen Anstieg darstellt, aber im Vergleich zu 3,1 Millionen Dollar im dritten Quartal 2023 einen Rückgang bedeutet. Die Gesamteinlagen stiegen um 3,7% auf 2,50 Milliarden Dollar, wobei die nichtzinsbringenden Einlagen um 19% auf 474 Millionen Dollar zunahmen. Das Verhältnis von Krediten zu Einlagen verbesserte sich auf 95,2% von 101,9% im zweiten Quartal. Die Nettozinsmarge fiel auf 2,32% von 2,35% im zweiten Quartal. Die verwalteten Vermögenswerte stiegen auf 7,47 Milliarden Dollar, nach 7,01 Milliarden Dollar im zweiten Quartal 2024. Das Unternehmen hielt seinen gut kapitalisierten Status mit einer CET1-Quote von 10,06% aufrecht.
- Net income doubled to $2.1 million from $1.1 million in Q2 2024
- Noninterest-bearing deposits increased 19% to $474 million
- Total deposits grew 3.7% to $2.50 billion
- Assets Under Management increased to $7.47 billion from $7.01 billion in Q2
- Loan-to-deposit ratio improved to 95.2% from 101.9%
- Net income decreased 31% year-over-year from $3.1 million in Q3 2023
- Net interest margin declined to 2.32% from 2.35% in Q2 2024
- Efficiency ratio worsened to 84.9% from 82.1% in Q2 2024
- Non-performing assets increased to 1.79% of total assets from 1.68% in Q2 2024
- Net interest income decreased 7.1% year-over-year
Insights
First Western Financial's Q3 2024 results show mixed performance with some concerning trends. Net income doubled to
Key positives include a
The significant increase in OREO to
Third Quarter 2024 Summary
- Net income available to common shareholders of
$2.1 million in Q3 2024, compared to$1.1 million in Q2 2024 - Diluted earnings per share of
$0.22 in Q3 2024, compared to$0.11 in Q2 2024 - Total deposits increased
3.7% from$2.41 billion in Q2 2024 to$2.50 billion in Q3 2024. Noninterest-bearing deposits increased19% from$397 million in Q2 2024 to$474 million in Q3 2024 - Loan-to-Deposit ratio decreased from
101.9% in Q2 2024 to95.2% in Q3 2024
DENVER, Oct. 24, 2024 (GLOBE NEWSWIRE) -- First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the third quarter ended September 30, 2024.
Net income available to common shareholders was
Scott C. Wylie, CEO of First Western, commented, “We generated a higher level of profitability in the third quarter while continuing to prioritize prudent risk management and a conservative approach to new loan production. We continued to effectively control expense levels while also making investments in the business that will support our profitable growth in the future. We are executing well on our balance sheet management strategies, which resulted in further reduction in our loan-to-deposit ratio, primarily driven by a significant increase in noninterest-bearing deposits, which increased
“With our successful efforts to reposition our balance sheet including increasing our liquidity with a lower loan-to-deposit ratio, we are well positioned to generate a higher level of loan growth in 2025 as loan demand increases. We also expect to see expansion in our net interest margin and an increase in non-interest income from our mortgage business as interest rates decline, which should further improve our level of profitability. We are seeing positive trends in a number of key areas that we expect to continue, which we believe should result in steady improvement in our financial performance, operating leverage, and further value created for our shareholders,” said Mr. Wylie.
| For the Three Months Ended | |||||||||||
| September 30, | June 30, | September 30, | |||||||||
| (Dollars in thousands, except per share data) | 2024 | 2024 | 2023 | ||||||||
| Earnings Summary | |||||||||||
| Net interest income | $ | 15,568 | $ | 15,778 | $ | 16,766 | |||||
| Provision for credit losses | 501 | 2,334 | 329 | ||||||||
| Total non-interest income | 6,972 | 6,972 | 6,099 | ||||||||
| Total non-interest expense | 19,368 | 19,001 | 18,314 | ||||||||
| Income before income taxes | 2,671 | 1,415 | 4,222 | ||||||||
| Income tax expense | 537 | 339 | 1,104 | ||||||||
| Net income available to common shareholders | 2,134 | 1,076 | 3,118 | ||||||||
| Basic earnings per common share | 0.22 | 0.11 | 0.33 | ||||||||
| Diluted earnings per common share | 0.22 | 0.11 | 0.32 | ||||||||
| Return on average assets (annualized) | 0.30 | % | 0.15 | % | 0.44 | % | |||||
| Return on average shareholders' equity (annualized) | 3.43 | 1.73 | 5.08 | ||||||||
| Return on tangible common equity (annualized)(1) | 3.93 | 2.00 | 5.82 | ||||||||
| Net interest margin | 2.32 | 2.35 | 2.46 | ||||||||
| Efficiency ratio(1) | 84.89 | 82.13 | 78.89 | ||||||||
____________________
(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 Third 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 third quarter of 2024 was
Net Interest Margin
Net interest margin for the third quarter of 2024 decreased 3 basis points to
The yield on interest-earning assets remained flat at
Relative to the third quarter of 2023, net interest margin decreased from
Non-interest Income
Non-interest income for the third quarter of 2024 remained flat at
Relative to the third quarter of 2023, non-interest income increased
Non-interest Expense
Non-interest expense for the third quarter of 2024 was
Relative to the third 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”) increased to
Credit Quality
Non-performing assets totaled
Non-performing loans totaled
During the third quarter of 2024 the Company recorded a provision expense of
Capital
As of September 30, 2024, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of September 30, 2024, the Bank was classified as “well capitalized,” as summarized in the following table:
| September 30, | ||
| 2024 | ||
| Consolidated Capital | ||
| Tier 1 capital to risk-weighted assets | 10.06 | % |
| Common Equity Tier 1 ("CET1") to risk-weighted assets | 10.06 | |
| Total capital to risk-weighted assets | 13.19 | |
| Tier 1 capital to average assets | 8.04 | |
| Bank Capital | ||
| Tier 1 capital to risk-weighted assets | 11.39 | % |
| CET1 to risk-weighted assets | 11.39 | |
| Total capital to risk-weighted assets | 12.13 | |
| Tier 1 capital to average assets | 9.11 | |
Book value per common share increased
Tangible book value per common share(1) increased
During the third quarter of 2024, the Company repurchased 5,501 shares of its common stock at an average price of
(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, October 25, 2024. Telephone access: https://register.vevent.com/register/BI453d1a8caedc4cd7a7cc436a4d09c5c9.
A slide presentation relating to the third 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 | |||||||||||
| September 30, | June 30, | September 30, | |||||||||
| (Dollars in thousands, except per share amounts) | 2024 | 2024 | 2023 | ||||||||
| Interest and dividend income: | |||||||||||
| Loans, including fees | $ | 35,353 | $ | 35,275 | $ | 34,141 | |||||
| Loans accounted for under the fair value option | 141 | 168 | 300 | ||||||||
| Debt securities | 708 | 651 | 607 | ||||||||
| Interest-bearing deposits in other financial institutions | 1,754 | 1,855 | 1,292 | ||||||||
| Dividends, restricted stock | 134 | 105 | 141 | ||||||||
| Total interest and dividend income | 38,090 | 38,054 | 36,481 | ||||||||
| Interest expense: | |||||||||||
| Deposits | 21,150 | 20,848 | 17,467 | ||||||||
| Other borrowed funds | 1,372 | 1,428 | 2,248 | ||||||||
| Total interest expense | 22,522 | 22,276 | 19,715 | ||||||||
| Net interest income | 15,568 | 15,778 | 16,766 | ||||||||
| Less: provision for credit losses | 501 | 2,334 | 329 | ||||||||
| Net interest income, after provision for credit losses | 15,067 | 13,444 | 16,437 | ||||||||
| Non-interest income: | |||||||||||
| Trust and investment management fees | 4,728 | 4,875 | 4,846 | ||||||||
| Net gain on mortgage loans | 1,451 | 1,820 | 654 | ||||||||
| Bank fees | 392 | 327 | 427 | ||||||||
| Risk management and insurance fees | 367 | 109 | 145 | ||||||||
| Income on company-owned life insurance | 108 | 106 | 96 | ||||||||
| Net loss on loans accounted for under the fair value option | (233 | ) | (315 | ) | (252 | ) | |||||
| Unrealized gain (loss) recognized on equity securities | 24 | (2 | ) | (19 | ) | ||||||
| Other | 135 | 52 | 202 | ||||||||
| Total non-interest income | 6,972 | 6,972 | 6,099 | ||||||||
| Total income before non-interest expense | 22,039 | 20,416 | 22,536 | ||||||||
| Non-interest expense: | |||||||||||
| Salaries and employee benefits | 11,439 | 11,097 | 10,968 | ||||||||
| Occupancy and equipment | 2,126 | 2,080 | 1,807 | ||||||||
| Professional services | 1,893 | 1,826 | 1,867 | ||||||||
| Technology and information systems | 1,045 | 1,042 | 906 | ||||||||
| Data processing | 1,101 | 1,101 | 1,159 | ||||||||
| Marketing | 374 | 243 | 355 | ||||||||
| Amortization of other intangible assets | 57 | 56 | 62 | ||||||||
| Other | 1,333 | 1,556 | 1,190 | ||||||||
| Total non-interest expense | 19,368 | 19,001 | 18,314 | ||||||||
| Income before income taxes | 2,671 | 1,415 | 4,222 | ||||||||
| Income tax expense | 537 | 339 | 1,104 | ||||||||
| Net income available to common shareholders | $ | 2,134 | $ | 1,076 | $ | 3,118 | |||||
| Earnings per common share: | |||||||||||
| Basic | $ | 0.22 | $ | 0.11 | $ | 0.33 | |||||
| Diluted | 0.22 | 0.11 | 0.32 | ||||||||
| First Western Financial, Inc. Condensed Consolidated Balance Sheets (unaudited) | |||||||||||
| September 30, | June 30, | September 30, | |||||||||
| (Dollars in thousands) | 2024 | 2024 | 2023 | ||||||||
| Assets | |||||||||||
| Cash and cash equivalents: | |||||||||||
| Cash and due from banks | $ | 18,979 | $ | 6,374 | $ | 6,439 | |||||
| Interest-bearing deposits in other financial institutions | 257,243 | 239,425 | 265,045 | ||||||||
| Total cash and cash equivalents | 276,222 | 245,799 | 271,484 | ||||||||
| Held-to-maturity debt securities (fair value of | 76,745 | 78,927 | 75,539 | ||||||||
| Correspondent bank stock, at cost | 5,746 | 10,804 | 11,305 | ||||||||
| Mortgage loans held for sale, at fair value | 12,324 | 26,856 | 12,105 | ||||||||
| Loans held for sale, at fair value | 473 | — | — | ||||||||
| Loans (includes | 2,383,199 | 2,456,063 | 2,530,459 | ||||||||
| Allowance for credit losses | (18,796 | ) | (27,319 | ) | (23,175 | ) | |||||
| Loans, net | 2,364,403 | 2,428,744 | 2,507,284 | ||||||||
| Premises and equipment, net | 24,350 | 24,657 | 25,410 | ||||||||
| Accrued interest receivable | 10,455 | 11,339 | 11,633 | ||||||||
| Accounts receivable | 4,864 | 5,118 | 5,292 | ||||||||
| Other receivables | 10,397 | 4,875 | 3,052 | ||||||||
| Other real estate owned, net | 37,036 | 11,421 | — | ||||||||
| Goodwill and other intangible assets, net | 31,684 | 31,741 | 31,916 | ||||||||
| Deferred tax assets, net | 4,075 | 6,123 | 6,624 | ||||||||
| Company-owned life insurance | 16,849 | 16,741 | 16,429 | ||||||||
| Other assets | 36,325 | 34,410 | 24,680 | ||||||||
| Total assets | $ | 2,911,948 | $ | 2,937,555 | $ | 3,002,753 | |||||
| Liabilities | |||||||||||
| Deposits: | |||||||||||
| Noninterest-bearing | $ | 473,576 | $ | 396,702 | $ | 476,308 | |||||
| Interest-bearing | 2,029,478 | 2,014,190 | 1,943,688 | ||||||||
| Total deposits | 2,503,054 | 2,410,892 | 2,419,996 | ||||||||
| Borrowings: | |||||||||||
| Federal Home Loan Bank and Federal Reserve borrowings | 62,373 | 191,505 | 259,930 | ||||||||
| Subordinated notes | 52,508 | 52,451 | 52,279 | ||||||||
| Accrued interest payable | 3,339 | 2,243 | 3,203 | ||||||||
| Other liabilities | 41,843 | 33,589 | 21,089 | ||||||||
| Total liabilities | 2,663,117 | 2,690,680 | 2,756,497 | ||||||||
| Shareholders’ Equity | |||||||||||
| Total shareholders’ equity | 248,831 | 246,875 | 246,256 | ||||||||
| Total liabilities and shareholders’ equity | $ | 2,911,948 | $ | 2,937,555 | $ | 3,002,753 | |||||
| First Western Financial, Inc. Consolidated Financial Summary (unaudited) | |||||||||||
| September 30, | June 30, | September 30, | |||||||||
| (Dollars in thousands) | 2024 | 2024 | 2023 | ||||||||
| Loan Portfolio | |||||||||||
| Cash, Securities, and Other(1) | $ | 116,856 | $ | 143,720 | $ | 148,669 | |||||
| Consumer and Other | 14,978 | 15,645 | 23,975 | ||||||||
| Construction and Development | 301,542 | 309,146 | 349,436 | ||||||||
| 1-4 Family Residential | 920,709 | 904,569 | 913,085 | ||||||||
| Non-Owner Occupied CRE | 608,494 | 609,790 | 527,377 | ||||||||
| Owner Occupied CRE | 176,165 | 189,353 | 208,341 | ||||||||
| Commercial and Industrial | 239,660 | 277,973 | 349,515 | ||||||||
| Total | 2,378,404 | 2,450,196 | 2,520,398 | ||||||||
| Loans accounted for under the fair value option | 8,884 | 10,494 | 16,105 | ||||||||
| Total loans held for investment | 2,387,288 | 2,460,690 | 2,536,503 | ||||||||
| Deferred (fees) costs and unamortized premiums/(unaccreted discounts), net(2) | (4,089 | ) | (4,627 | ) | (6,044 | ) | |||||
| Loans (includes | $ | 2,383,199 | $ | 2,456,063 | $ | 2,530,459 | |||||
| Mortgage loans held for sale | 12,324 | 26,856 | 12,105 | ||||||||
| Loans held for sale | 473 | — | — | ||||||||
| Deposit Portfolio | |||||||||||
| Money market deposit accounts | $ | 1,350,619 | $ | 1,342,753 | $ | 1,388,726 | |||||
| Time deposits | 533,452 | 519,597 | 373,459 | ||||||||
| Interest checking accounts | 130,255 | 135,759 | 164,000 | ||||||||
| Savings accounts | 15,152 | 16,081 | 17,503 | ||||||||
| Total interest-bearing deposits | 2,029,478 | 2,014,190 | 1,943,688 | ||||||||
| Noninterest-bearing accounts | 473,576 | 396,702 | 476,308 | ||||||||
| Total deposits | $ | 2,503,054 | $ | 2,410,892 | $ | 2,419,996 | |||||
____________________
(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 | |||||||||||
| September 30, | June 30, | September 30, | |||||||||
| (Dollars in thousands) | 2024 | 2024 | 2023 | ||||||||
| Average Balance Sheets | |||||||||||
| Assets | |||||||||||
| Interest-earning assets: | |||||||||||
| Interest-bearing deposits in other financial institutions | $ | 129,629 | $ | 141,600 | $ | 102,510 | |||||
| Debt securities | 79,007 | 75,461 | 78,057 | ||||||||
| Correspondent bank stock | 6,281 | 4,801 | 7,162 | ||||||||
| Loans | 2,429,927 | 2,443,937 | 2,485,704 | ||||||||
| Mortgage loans held for sale | 18,423 | 20,254 | 12,680 | ||||||||
| Loans held at fair value | 9,691 | 11,314 | 16,715 | ||||||||
| Total interest-earning assets | 2,672,958 | 2,697,367 | 2,702,828 | ||||||||
| Allowance for credit losses | (27,236 | ) | (24,267 | ) | (22,122 | ) | |||||
| Noninterest-earning assets | 161,072 | 143,514 | 125,774 | ||||||||
| Total assets | $ | 2,806,794 | $ | 2,816,614 | $ | 2,806,480 | |||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Interest-bearing liabilities: | |||||||||||
| Interest-bearing deposits | $ | 2,007,265 | $ | 2,001,691 | $ | 1,846,318 | |||||
| FHLB and Federal Reserve borrowings | 62,589 | 67,196 | 125,250 | ||||||||
| Subordinated notes | 52,470 | 52,414 | 52,242 | ||||||||
| Total interest-bearing liabilities | 2,122,324 | 2,121,301 | 2,023,810 | ||||||||
| Noninterest-bearing liabilities: | |||||||||||
| Noninterest-bearing deposits | 395,755 | 412,741 | 512,956 | ||||||||
| Other liabilities | 40,089 | 34,051 | 24,228 | ||||||||
| Total noninterest-bearing liabilities | 435,844 | 446,792 | 537,184 | ||||||||
| Total shareholders’ equity | 248,626 | 248,521 | 245,486 | ||||||||
| Total liabilities and shareholders’ equity | $ | 2,806,794 | $ | 2,816,614 | $ | 2,806,480 | |||||
| Yields/Cost of funds (annualized) | |||||||||||
| Interest-bearing deposits in other financial institutions | 5.38 | % | 5.27 | % | 5.00 | % | |||||
| Debt securities | 3.57 | 3.47 | 3.09 | ||||||||
| Correspondent bank stock | 8.49 | 8.80 | 7.81 | ||||||||
| Loans | 5.74 | 5.75 | 5.42 | ||||||||
| Loan held at fair value | 5.79 | 5.97 | 7.12 | ||||||||
| Mortgage loans held for sale | 5.87 | 6.83 | 6.70 | ||||||||
| Total interest-earning assets | 5.67 | 5.67 | 5.35 | ||||||||
| Interest-bearing deposits | 4.19 | 4.19 | 3.75 | ||||||||
| Total deposits | 3.50 | 3.47 | 2.94 | ||||||||
| FHLB and Federal Reserve borrowings | 4.03 | 4.14 | 4.58 | ||||||||
| Subordinated notes | 5.60 | 5.66 | 6.08 | ||||||||
| Total interest-bearing liabilities | 4.22 | 4.22 | 3.86 | ||||||||
| Net interest margin | 2.32 | 2.35 | 2.46 | ||||||||
| Net interest rate spread | 1.45 | 1.45 | 1.49 | ||||||||
| First Western Financial, Inc. Consolidated Financial Summary (unaudited) (continued) | |||||||||||
| As of or for the Three Months Ended | |||||||||||
| September 30, | June 30, | September 30, | |||||||||
| (Dollars in thousands, except share and per share amounts) | 2024 | 2024 | 2023 | ||||||||
| Asset Quality | |||||||||||
| Non-performing loans | $ | 15,031 | $ | 37,909 | $ | 56,146 | |||||
| Non-performing assets | 52,067 | 49,330 | 56,146 | ||||||||
| Net charge-offs (recoveries) | 9,319 | (9 | ) | 190 | |||||||
| Non-performing loans to total loans | 0.63 | % | 1.54 | % | 2.21 | % | |||||
| Non-performing assets to total assets | 1.79 | 1.68 | 1.87 | ||||||||
| Allowance for credit losses to non-performing loans | 125.05 | 72.06 | 41.28 | ||||||||
| Allowance for credit losses to total loans | 0.79 | 1.11 | 0.92 | ||||||||
| Allowance for credit losses to adjusted loans(1) | 0.79 | 1.12 | 0.92 | ||||||||
| Net charge-offs to average loans | 0.38 | * | 0.01 | ||||||||
| Assets Under Management | $ | 7,465,757 | $ | 7,011,796 | $ | 6,395,786 | |||||
| Market Data | |||||||||||
| Book value per share at period end | $ | 25.75 | $ | 25.55 | $ | 25.76 | |||||
| Tangible book value per common share(1) | 22.47 | 22.27 | 22.42 | ||||||||
| Weighted average outstanding shares, basic | 9,663,131 | 9,647,345 | 9,553,331 | ||||||||
| Weighted average outstanding shares, diluted | 9,825,515 | 9,750,667 | 9,743,270 | ||||||||
| Shares outstanding at period end | 9,664,101 | 9,660,548 | 9,560,209 | ||||||||
| Consolidated Capital | |||||||||||
| Tier 1 capital to risk-weighted assets | 10.06 | % | 9.92 | % | 9.32 | % | |||||
| CET1 to risk-weighted assets | 10.06 | 9.92 | 9.32 | ||||||||
| Total capital to risk-weighted assets | 13.19 | 13.44 | 12.45 | ||||||||
| Tier 1 capital to average assets | 8.04 | 7.91 | 7.96 | ||||||||
| Bank Capital | |||||||||||
| Tier 1 capital to risk-weighted assets | 11.39 | % | 11.22 | % | 10.42 | % | |||||
| CET1 to risk-weighted assets | 11.39 | 11.22 | 10.42 | ||||||||
| Total capital to risk-weighted assets | 12.13 | 12.35 | 11.31 | ||||||||
| Tier 1 capital to average assets | 9.11 | 8.95 | 8.88 | ||||||||
____________________
(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.
* 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 | |||||||||||
| September 30, | June 30, | September 30, | |||||||||
| (Dollars in thousands, except share and per share amounts) | 2024 | 2024 | 2023 | ||||||||
| Tangible Common | |||||||||||
| Total shareholders' equity | $ | 248,831 | $ | 246,875 | $ | 246,256 | |||||
| Less: goodwill and other intangibles, net | 31,684 | 31,741 | 31,916 | ||||||||
| Tangible common equity | $ | 217,147 | $ | 215,134 | $ | 214,340 | |||||
| Common shares outstanding, end of period | 9,664,101 | 9,660,548 | 9,560,209 | ||||||||
| Tangible common book value per share | $ | 22.47 | $ | 22.27 | $ | 22.42 | |||||
| Net income available to common shareholders | 2,134 | 1,076 | 3,118 | ||||||||
| Return on tangible common equity (annualized) | 3.93 | % | 2.00 | % | 5.82 | % | |||||
| Efficiency | |||||||||||
| Non-interest expense | $ | 19,368 | $ | 19,001 | $ | 18,314 | |||||
| Less: amortization | 57 | 56 | 62 | ||||||||
| Adjusted non-interest expense | $ | 19,311 | $ | 18,945 | $ | 18,252 | |||||
| Total income before non-interest expense | $ | 22,039 | $ | 20,416 | $ | 22,536 | |||||
| Less: unrealized (loss)/gain recognized on equity securities | 24 | (2 | ) | (19 | ) | ||||||
| Less: net loss on loans accounted for under the fair value option | (233 | ) | (315 | ) | (252 | ) | |||||
| Plus: provision for credit losses | 501 | 2,334 | 329 | ||||||||
| Gross revenue | $ | 22,749 | $ | 23,067 | $ | 23,136 | |||||
| Efficiency ratio | 84.89 | % | 82.13 | % | 78.89 | % | |||||
| Allowance for Credit Loss to Adjusted Loans | |||||||||||
| Total loans held for investment | $ | 2,387,288 | $ | 2,460,690 | $ | 2,536,503 | |||||
| Less: PPP loans | 2,603 | 3,129 | 4,876 | ||||||||
| Less: loans accounted for under fair value | 8,884 | 10,494 | 16,105 | ||||||||
| Adjusted loans | $ | 2,375,801 | $ | 2,447,067 | $ | 2,515,522 | |||||
| Allowance for credit losses | $ | 18,796 | $ | 27,319 | $ | 23,175 | |||||
| Allowance for credit losses to adjusted loans | 0.79 | % | 1.12 | % | 0.92 | % | |||||
FAQ
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