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
$2.7 million, or $0.28 per diluted share, for the fourth quarter of
2024. This compares to net income of $2.1 million, or $0.22
per diluted share, for the third quarter of 2024, and net loss of
$3.2 million, or $0.34 per diluted share, for the fourth
quarter of 2023.
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
$24.3 million for the fourth quarter of 2024, compared to
$22.0 million for the third quarter of 2024. Gross revenue(1)
was $23.8 million for the fourth quarter of 2024, compared to $22.7
million for the third quarter of 2024. The increase in total income
before non-interest expense was primarily driven by an increase in
Net interest income, decrease in (Release of) provision for credit
losses, and increase in Risk management and insurance fees,
partially offset by a decrease in Net gain on mortgage loans.
Relative to the fourth quarter of 2023, total income before
non-interest expense increased 74.8% from $13.9 million. Gross
revenue increased 5.8% from $22.5 million for the fourth quarter of
2023. The increase in total income before non-interest expense was
primarily driven by an increase in Net interest income, decrease in
(Release of) provision for credit losses, and increase in Risk
management and insurance fees.
(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 $16.9 million, an increase of 8.3% from $15.6 million
in the third quarter of 2024. The increase quarter over quarter was
primarily driven by an increase in interest-earnings assets and a
13 basis point increase in net interest margin. Relative to the
fourth quarter of 2023, net interest income increased 3.7% from
$16.3 million. The increase compared to the prior year fourth
quarter was primarily driven by an 8 basis point increase in net
interest margin.
Net Interest Margin
Net interest margin for the fourth quarter of
2024 increased 13 basis points to 2.45% from 2.32% reported in the
third quarter of 2024, primarily due to a decrease in cost of
deposits, partially offset by a decrease in interest-earning assets
yield.
The yield on interest-earning assets decreased
14 basis points to 5.53% from 5.67% reported in the third quarter
of 2024 and the cost of interest-bearing deposits decreased 41
basis points to 3.78% in the fourth quarter of 2024 from 4.19%
reported in the third quarter of 2024.
Relative to the fourth quarter of 2023, net
interest margin increased 8 basis points from 2.37%, primarily due
an 11 basis point decrease in cost of funds and 2 basis point
increase on interest-earning assets.
Non-interest Income
Non-interest income for the fourth quarter of
2024 was $6.5 million, a decrease of 7.1% from $7.0 million in
the third quarter of 2024. The decrease was driven primarily by a
decrease in Net gain on mortgage loans and increase in Net loss on
loans held for sale, partially offset by an increase in Risk
management and insurance fees.
Relative to the fourth quarter of 2023,
non-interest income increased 6.6% from $6.1 million. The
increase was driven primarily by an increase in Risk management and
insurance fees, partially offset by an increase in Net loss on
loans held for sale.
Non-interest Expense
Non-interest expense for the fourth quarter of
2024 was $20.4 million, an increase of 5.2% from $19.4 million
in the third quarter of 2024. The increase was primarily driven by
a $1.1 million Other real estate owned ("OREO") write-down, offset
partially by a decrease in Salaries and employee benefits.
Relative to the fourth quarter of 2023,
non-interest expense increased 11.5% from $18.3 million,
driven primarily by an increase in Salaries and employee benefits
due to increased front office headcount and the OREO
write-down.
The Company’s efficiency ratio(1) was 80.7% in
the fourth quarter of 2024, compared with 85.0% in the third
quarter of 2024 and 81.2% in the fourth quarter of 2023.
(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
$1.2 million for the fourth quarter of 2024, compared to
Income tax expense of $0.5 million for the third quarter of
2024 and Income tax benefit of $1.1 million for the fourth
quarter of 2023. The increase in the fourth quarter of 2024
compared to the third quarter of 2024 was primarily attributable to
the increase in taxable income and a third quarter change in
temporary tax
differences.
Loans
Total loans held for investment were
$2.43 billion as of December 31, 2024, an increase of
1.7% from $2.39 billion as of September 30, 2024. The
increase was primarily due to net growth in the 1 - 4 family
residential and construction and development portfolios, offset
partially by net decrease in the commercial and industrial
portfolio. Relative to the fourth quarter of 2023, total loans held
for investment decreased from $2.54 billion as of
December 31, 2023.
Deposits
Total deposits were $2.51 billion as of
December 31, 2024, an increase of 0.4% from $2.50 billion as
of September 30, 2024. The increase was driven primarily by
expanded deposit relationships. Relative to the fourth quarter of
2023, total deposits decreased from $2.53 billion as of
December 31, 2023, driven primarily by a decrease in
Noninterest-bearing deposits. Total average deposits were $2.50
billion for the fourth quarter of 2024, an increase of 4.0% from
$2.40 billion for the third quarter of 2024. The increase was
driven by average interest-bearing deposits increasing $87.9
million and noninterest-bearing deposits increasing $7.7 million
throughout the quarter.
Borrowings
Federal Home Loan Bank (“FHLB”) and Federal
Reserve borrowings were a combined $57.0 million as of
December 31, 2024, a decrease of $5.4 million from $62.4
million as of September 30, 2024. The change when compared to
September 30, 2024 was primarily driven by paying off the Bank
Term Funding Program ("BTFP") loan in the quarter. Relative to the
fourth quarter of 2023, borrowings decreased $68.7 million from
$125.7 million as of December 31, 2023. The decrease in
borrowings from December 31, 2023 was primarily driven by BTFP
payoffs and net pay downs on the Company's FHLB line of credit.
Subordinated notes were $52.6 million as of
December 31, 2024, compared to $52.5 million as of
September 30, 2024. Subordinated notes increased $0.3 million
from $52.3 million as of December 31, 2023.
Assets Under Management
Assets Under Management (“AUM”) decreased to
$7.32 billion as of December 31, 2024, compared to
$7.47 billion as of September 30, 2024. The decrease in
AUM during the quarter was primarily attributable to net
withdrawals and lower market values at the end of the fourth
quarter of 2024. Total AUM increased from $6.75 billion as of
December 31, 2023. The increase when compared to
December 31, 2023 was primarily attributable to improving
market conditions resulting in an increase in the value of AUM.
Credit Quality
Non-performing assets totaled
$49.0 million, or 1.68% of total assets, as of
December 31, 2024, compared to $52.1 million, or 1.79% of
total assets, as of September 30, 2024. The decrease in
non-performing assets during the quarter was primarily due to pay
downs, the migration of one non-performing loan into performing,
and the write-down of OREO. As of December 31, 2023,
non-performing assets totaled $51.1 million, or 1.72% of total
assets. Relative to the fourth quarter of 2023, the decrease in
non-performing assets was primarily driven by pay downs,
charge-offs, write-downs, and the sale of a non-performing loan,
partially offset by additions to Other real estate owned ("OREO")
and non-performing loans. OREO totaled $35.9 million as of
December 31, 2024 a decrease of $1.1 million from $37.0
million as of September 30, 2024 due to a write-down during
the quarter. As of December 31, 2023, the Company held no
OREO.
Non-performing loans totaled $13.1 million as of
December 31, 2024, a decrease of $1.9 million from $15.0
million as of September 30, 2024. The decrease was primarily
due to pay downs and the migration of one non-performing loan into
performing. As of December 31, 2023, non-performing loans
totaled $51.1 million. The decrease when compared to
December 31, 2023 was driven by the migration of one loan
relationship out of non-performing loans and into OREO, pay downs,
charge-offs, write-downs, and the sale of a non-performing loan,
partially offset by additions to non-performing loans.
During the fourth quarter of 2024, the Company
recorded a provision release of $1.0 million, compared to a
provision expense of $0.5 million in the third quarter of 2024
and $8.5 million in the fourth quarter of 2023. The decrease
in provision expense recorded in the fourth quarter of 2024
compared to the third quarter of 2024 was primarily driven by
decreased provision on pooled loans. The decrease in provision
expense recorded in the fourth quarter of 2024 compared to the
fourth quarter of 2023 was primarily driven by decreased provision
on individually analyzed loans.
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 1.4% from
$25.75 as of September 30, 2024 to $26.10 as of
December 31, 2024. Book value per common share increased 3.0%
from $25.33 as of December 31, 2023.
Tangible book value per common share(1)
increased 1.6% from $22.47 as of September 30, 2024, to $22.83
as of December 31, 2024. Tangible book value per common share
increased 3.7% from $22.01 as of December 31, 2023.
(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
Rossi310-622-8221MYFW@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 $68,161, $70,826 and $66,617,
respectively), net of allowance for credit losses of $71 |
|
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 $7,283,
$8,646, and $13,726 measured at fair value, respectively) |
|
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 $7,283,
$8,646, and $13,726 measured at fair value, respectively) |
$ |
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 $2.1 million
as of December 31, 2024, $2.6 million as of
September 30, 2024, and $4.3 million as of December 31,
2023.(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 |
% |
First Western Finanical (NASDAQ:MYFW)
Historical Stock Chart
Von Dez 2024 bis Jan 2025
First Western Finanical (NASDAQ:MYFW)
Historical Stock Chart
Von Jan 2024 bis Jan 2025
