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
$2.1 million, or $0.22 per diluted share, for the third quarter of
2024. This compares to net income of $1.1 million, or $0.11
per diluted share, for the second quarter of 2024, and net income
of $3.1 million, or $0.32 per diluted share, for the third
quarter of 2023.
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 19% from the end of the prior quarter. We also saw
positive trends in asset quality, including a significant reduction
in non-performing loans and classified loans, as well as increases
in our book value per share and tangible book value per share,
which further strengthened our balance sheet.”
“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
$22.0 million for the third quarter of 2024, compared to
$20.4 million for the second quarter of 2024. Gross revenue(1)
was $22.7 million for the third quarter of 2024, compared to $23.1
million for the second quarter of 2024. The increase in total
income before non-interest expense was primarily driven by a
decrease in Provision for credit losses. Relative to the third
quarter of 2023, total income before non-interest expense decreased
2.2% from $22.5 million. Gross revenue decreased 1.7% from
$23.1 million for the third quarter of 2023. The decrease in total
income before non-interest expense was driven by an increase in
Interest expense due to higher deposit costs, offset partially by
higher Interest income and Net mortgage gains.
(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 $15.6 million, a decrease of 1.3% from $15.8 million
in the second quarter of 2024. The decrease quarter over quarter
was driven by an increase in interest expense due to an increase in
interest-bearing deposits and partially due to having one
additional day in the quarter. Interest income was negatively
impacted by $0.4 million in the quarter due to the addition of a
non-performing loan. Relative to the third quarter of 2023, net
interest income decreased 7.1% from $16.8 million. The
decrease compared to the prior year third quarter was due to higher
Interest expense driven primarily by higher deposit costs, offset
partially by higher Interest income.
Net Interest Margin
Net interest margin for the third quarter of
2024 decreased 3 basis points to 2.32% from 2.35% reported in the
second quarter of 2024, primarily due to an unfavorable mix shift
in average deposit balances. Net interest margin was negatively
impacted by 6 basis points in the quarter due to the addition of a
non-performing loan.
The yield on interest-earning assets remained
flat at 5.67% in the third quarter of 2024 versus 5.67% in the
second quarter of 2024 and the cost of interest-bearing deposits
remained flat at 4.19% in the third quarter of 2024 versus 4.19% in
the second quarter of 2024.
Relative to the third quarter of 2023, net
interest margin decreased from 2.46%, primarily due to pricing
pressure on interest-bearing deposits, offset partially by higher
loan yields.
Non-interest Income
Non-interest income for the third quarter of
2024 remained flat at $7.0 million compared to $7.0 million in
the second quarter of 2024. Activity throughout the quarter
included an increase in Risk management and insurance fees, offset
by decreased Net gain on mortgage loans.
Relative to the third quarter of 2023,
non-interest income increased 14.8% from $6.1 million.
Increases were driven primarily by increases in net gain on
mortgage loans and risk management and insurance fees.
Non-interest Expense
Non-interest expense for the third quarter of
2024 was $19.4 million compared to $19.0 million for the
second quarter of 2024. The increase was primarily driven by
increases in Salaries and employee benefits due to increased front
office headcount and Marketing expenses, partially offset by a
decrease in other operational expenses due to a partial recovery on
a fraud loss from the first quarter.
Relative to the third quarter of 2023,
non-interest expense increased 6.0% from $18.3 million, driven
primarily by an increase in Salaries and employee benefits,
occupancy costs, and technology enhancements.
The Company’s efficiency ratio(1) was 84.9% in
the third quarter of 2024, compared with 82.1% in the second
quarter of 2024 and 78.9% in the third 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
$0.5 million for the third quarter of 2024, compared to Income
tax expense of $0.3 million for the second quarter of 2024 and
$1.1 million for the third quarter of 2023. The increase in
the third quarter of 2024 compared to the second quarter of 2024
was attributable to the increase in Income before income
taxes.
Loans
Total loans held for investment were
$2.39 billion as of September 30, 2024, a decrease of
2.85% from $2.46 billion as of June 30, 2024. The decline
was primarily due to net decreases in the cash, securities and
other and commercial and industrial portfolios, offset partially by
net growth in the 1 - 4 family residential portfolio. Another
contributing factor to the decline was the foreclosure of a
property in the quarter, which decreased non-performing loans by
$30 million and increased Other real estate owned ("OREO") by
$25.6 million. Relative to the third quarter of 2023, total loans
held for investment decreased from $2.54 billion as of
September 30, 2023.
Deposits
Total deposits were $2.50 billion as of
September 30, 2024, compared to $2.41 billion as of
June 30, 2024. The increase was driven primarily by an
increase in Noninterest-bearing deposits. Relative to the third
quarter of 2023, total deposits increased from $2.42 billion
as of September 30, 2023, driven primarily by an increase in
time deposits due to new and expanded deposit relationships.
Borrowings
Federal Home Loan Bank (“FHLB”) and Federal
Reserve borrowings were a combined $62.4 million as of
September 30, 2024, a decrease of $129.1 million from $191.5
million as of June 30, 2024. The change when compared to
June 30, 2024 was driven by a decrease in FHLB borrowing due
to the deposit growth and loan balance decline that occurred in the
quarter. Relative to the third quarter of 2023, borrowings
decreased $197.5 million from $259.9 million as of
September 30, 2023. The decrease in borrowings from
September 30, 2023 is driven by an increase in deposits and
decrease in loans.
Subordinated notes were $52.5 million as of
September 30, 2024, compared to $52.5 million as of
June 30, 2024. Subordinated notes increased $0.2 million from
$52.3 million as of September 30, 2023.
Assets Under Management
Assets Under Management (“AUM”) increased to
$7.47 billion as of September 30, 2024, compared to
$7.01 billion as of June 30, 2024 and $6.40 billion
as of September 30, 2023. The increase when compared to
June 30, 2024 and September 30, 2023 was primarily
attributable to improving market conditions resulting in an
increase in the value of AUM.
Credit Quality
Non-performing assets totaled
$52.1 million, or 1.79% of total assets, as of
September 30, 2024, compared to $49.3 million, or 1.68%
of total assets, as of June 30, 2024. The increase in
non-performing assets during the quarter was primarily due to the
addition of a non-performing loan and foreclosed property,
partially offset by non-performing loan pay downs, charge-offs, and
the sale of a non-performing loan. As of September 30, 2023,
non-performing assets totaled $56.1 million, or 1.87% of total
assets. Relative to the third quarter of 2023, the decrease in
non-performing assets was primarily driven by pay downs,
charge-offs, and the sale of a non-performing loan, partially
offset by additions to Other real estate owned ("OREO") and
non-performing loans. OREO totaled $37.0 million as of
September 30, 2024 an increase of $25.6 million from $11.4
million as of June 30, 2024. As of September 30, 2023,
the Company held no OREO.
Non-performing loans totaled $15.0 million as of
September 30, 2024, a decrease of $22.9 million from $37.9
million as of June 30, 2024. As of September 30, 2023,
non-performing loans totaled $56.1 million. The decrease when
compared to June 30, 2024 and September 30, 2023 was
driven by the migration of one loan relationship out of
non-performing loans and into OREO, pay downs, charge-offs, and the
sale of a non-performing loan, partially offset by additions to
non-performing loans.
During the third quarter of 2024 the Company
recorded a provision expense of $0.5 million, compared to a
provision expense of $2.3 million in the second quarter of
2024 and $0.3 million in the third quarter of 2023. The
decrease in provision expense recorded in the third quarter of 2024
compared to second quarter of 2024 was primarily driven by
decreased provision on individually analyzed loans in the third
quarter.
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 0.8% from
$25.55 as of June 30, 2024 to $25.75 as of September 30,
2024. Book value per common share decreased 0.04% from $25.76 as of
September 30, 2023.
Tangible book value per common share(1)
increased 0.9% from $22.27 as of June 30, 2024, to $22.47 as
of September 30, 2024. Tangible book value per common share
increased 0.2% from $22.42 as of September 30, 2023.
During the third quarter of 2024, the Company
repurchased 5,501 shares of its common stock at an average price of
$16.27 under its stock repurchase program, which authorized the
repurchase of up to 200,000 shares of its common stock. As of
September 30, 2024, the Company had up to 194,499 shares
remaining under the current stock repurchase authorization.
(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 Rossi310-622-8221MYFW@finprofiles.comIR@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 $70,826, $71,067 and $66,487,
respectively), net of allowance for credit losses of $71 |
|
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 $8,646,
$10,190, and $15,464 measured at fair value, respectively) |
|
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 $8,646,
$10,190, and $15,464 measured at fair value, respectively) |
$ |
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 $2.6 million
as of September 30, 2024, $3.1 million as of
June 30, 2024, and $4.9 million as of September 30,
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 |
| |
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 |
% |
First Western Finanical (NASDAQ:MYFW)
過去 株価チャート
から 12 2024 まで 1 2025
First Western Finanical (NASDAQ:MYFW)
過去 株価チャート
から 1 2024 まで 1 2025
