Exhibit 99.1

Picture 1

First Western Reports Third Quarter 2018 Financial Results

Third Quarter 2018 Summary

·

Completed initial public offering, raising net proceeds before expenses of $34.1 million

·

Net income available to common shareholders of $1.4 million, compared to net income available to common shareholders of $0.5 million in Q3 2017

·

Diluted EPS of $0.19, compared to $0.08 in Q3 2017

·

Gross revenue of $14.4 million, compared to $14.1 million in Q3 2017

·

Average loans increase $27.7 million, or 13.4% annualized from Q2 2018

·

Total loans, excluding loans held for sale, of $857.3 million, a 7.0% annualized increase from Q2 2018 and an 8.5% increase from Q3 2017

·

Total deposits of $878.6 million, a 16.5% annualized increase from Q2 2018 and an 8.1%  increase from Q3 2017

·

Total assets under management of $5.63 billion, a 15.5% annualized increase from Q2 2018 and an 8.6% increase from Q3 2017

·

Efficiency ratio of 83.0%, an improvement from 88.8% in Q2 2018

 

Denver, Colo., October 24, 2018 – First Western Financial, Inc., (“First Western” or the “Company”) (NASDAQ: MYFW), a financial services holding company, today reported financial results for the third quarter ended September 30, 2018.

For the third quarter of 2018, net income available to common shareholders was $1.4 million, or $0.19 per diluted share, which included $0.3 million of preferred stock dividends. This compares to $0.5 million, or $0.08 per diluted share, for the second quarter of 2018, which included $0.6 million of preferred stock dividends, and $0.5 million, or $0.08 per diluted share, for the third quarter of 2017, which included $0.6 million of preferred stock dividends.

“We delivered a strong quarter of improvement in our financial results, with our earnings per share increasing 138% from the prior quarter and generating a higher level of return on assets and return on equity,” said Scott C. Wylie, CEO of First Western.  “We executed on the near-term drivers of earnings growth that we identified including redeeming our higher cost capital and streamlining our cost structure.  As a result of our expense reduction actions, our operating efficiency ratio improved to 83.0% from 88.8% last quarter.  We were able to generate solid growth in total loans, although not at the level we anticipated.  Over the past year, we have made a number of enhancements to our business development platform that we expect to positively impact our client acquisition efforts in the future.  As we gain more traction in business development, we expect to generate a higher level of revenue, realize greater operating leverage, and drive further earnings growth that we believe will create additional value for our shareholders.”


 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

September 30,

 

June 30,

 

September 30,

 

(Dollars in thousands, except per share data)

    

2018

    

2018

    

2017

 

Earnings Summary

 

 

  

 

 

  

 

 

  

 

Net interest income

 

$

7,788

 

$

7,577

 

$

7,375

 

Less: Provision for credit losses

 

 

18

 

 

 —

 

 

306

 

Total non-interest income

 

 

6,638

 

 

6,892

 

 

6,745

 

Total non-interest expense

 

 

12,176

 

 

13,084

 

 

12,134

 

Income before income taxes

 

 

2,232

 

 

1,385

 

 

1,680

 

Income tax expense

 

 

543

 

 

337

 

 

632

 

Net income

 

 

1,689

 

 

1,048

 

 

1,048

 

Preferred stock dividends

 

 

(255)

 

 

(562)

 

 

(584)

 

Net income available to common shareholders

 

$

1,434

 

$

486

 

$

464

 

Basic and diluted earnings per common share

 

$

0.19

 

$

0.08

 

$

0.08

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.65

%  

 

0.41

%  

 

0.43

%

Return on average shareholders' equity

 

 

6.01

%  

 

3.99

%  

 

4.26

%

Return on tangible common equity(1)

 

 

1.62

%  

 

0.89

%  

 

0.93

%

Net interest margin

 

 

3.29

%  

 

3.29

%  

 

3.35

%

Efficiency ratio(1)

 

 

82.96

%  

 

88.84

%  

 

84.62

%

(1)

Represents a Non-GAAP financial measure. See “Reconciliation of Non-GAAP Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

 

Operating Results for the Third Quarter 2018

Revenue

Gross revenue (total income before non-interest expense, less gains on securities sold, plus provision for credit losses) was $14.4 million for the third quarter 2018, compared to $14.5 million for the second quarter of 2018. The slight decline in revenue was driven by a $0.3 million decrease in non-interest income, primarily due to a decline in mortgage activity. This was partially offset by a $0.2 million increase in net interest income.

Relative to the third quarter of 2017, gross revenue increased $0.3 million from $14.1 million. The increase was attributable to a $0.4 million increase in net interest income, partially offset by a $0.1 million decrease in non-interest income.

 

Net Interest Income

 

Net interest income for the third quarter of 2018 was $7.8 million, an increase of 2.8% from $7.6 million in the second quarter of 2018. The increase in net interest income from the second quarter was primarily attributable to higher average loan balances.

 

Relative to the third quarter of 2017, net interest income increased 5.6% from $7.4 million. The increase in net interest income from the third quarter of 2017 was primarily driven by higher average loan balances.

 

Net Interest Margin

 

Net interest margin for the third quarter of 2018 was 3.29%, unchanged from the second quarter of 2018. An 8 basis point increase in the average yield on loans, from 4.34% to 4.42%, was offset by a 9 basis point increase in the average cost of funds, from 0.84% to 0.93%.

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Relative to the third quarter of 2017, the net interest margin decreased from 3.35%. A 3 basis point increase in the average yield on loans was offset by a 24 basis point increase in the average cost of funds.

 

Non-interest Income

 

Non-interest income for the third quarter of 2018 was $6.6 million, a decrease of 3.7% from $6.9 million in the second quarter of 2018. The decrease was primarily attributable to lower net gains on mortgage loans sold as a result of a lower volume of mortgages sold in the quarter.  This was partially offset by a 1.7% increase in trust and investment management fees due to growth in assets under management.

 

Non-interest income decreased 1.6% from $6.8 million in the third quarter of 2017, primarily as a result of a decline in trust and investment management fees and bank fees, partially offset by higher net gains on mortgage loans sold.

 

Non-interest Expense

 

Non-interest expense for the third quarter of 2018 was $12.2 million, a decrease of 6.9% from $13.1 million for the second quarter of 2018. The decrease was primarily attributable to lower salary expense and employee benefits expense as a result of streamlining the cost structure in certain areas of the Company, as well as lower professional fees.

 

Relative to the third quarter of 2017, non-interest expense was essentially flat.

 

The Company’s efficiency ratio was 83.0% in the third quarter of 2018, compared with 88.8% in the second quarter of 2018 and 84.6% in the third quarter of 2017.

 

Income Taxes

 

The Company recorded income tax expense of $0.5 million for the third quarter of 2018, representing an effective tax rate of 24.3%, compared to 24.3% for the second quarter of 2018 and 37.6% for the third quarter of 2017. The decrease in the effective tax rate in the third quarter of 2018, as compared to the third quarter of 2017, was attributable to the reduction in the federal corporate tax rate that was effective January 1, 2018.

 

Loan Portfolio

 

Gross loans, excluding mortgage loans held for sale, totaled $857.3 million at September 30, 2018, compared to $842.6 million at June 30, 2018 and $789.9 million at September 30, 2017.  The increase in total loans from June 30, 2018, was primarily attributable to growth in the 1-4 family residential portfolio.

 

Deposits

 

Total deposits were $878.6 million at September 30, 2018, compared to $843.7 million at June 30, 2018, and $813.0 million at September 30, 2017. The increase in total deposits from June 30, 2018 was due to an increase money market deposits, primarily attributed to an increase in trust account related deposits.

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Assets Under Management

 

Total assets under management increased by $210.2 million during the third quarter to $5.63 billion at September 30, 2018, compared to $5.42 billion at June 30, 2018 and $5.18 billion at September 30, 2017. The increase in assets under management from June 30, 2018 was primarily attributable to new client acquisitions and an increase in managed trust assets.

 

The increase from September 30, 2017 was due to increases across most asset categories, driven by contributions and market gains.

 

Credit Quality

 

Non-performing assets totaled $19.0 million, or 1.81% of total assets, at September 30, 2018, an increase from $3.7 million, or 0.35% of total assets, at June 30, 2018.  Approximately $11.3 million of the increase was related to a Cash, Securities, and Other loan. The credit is currently in the workout process and no specific reserve was required during the third quarter of 2018. The remainder of the increase in non-performing assets was related to administrative delays in renewing two credits that matured during the quarter.

 

The Company did not record any charge-offs in the third quarter. This marked the seventh consecutive quarter of no net charge-offs.

 

The Company recorded an immaterial amount of provision for loan losses for the third quarter of 2018. The modest provision reflected the lack of net charge-offs.

 

Capital

 

At September 30, 2018, First Western (“Consolidated”) and First Western Trust (“Bank”) exceeded the minimum capital levels required by their respective regulators, as summarized in the following table:

 

 

 

 

 

 

    

September 30,

 

 

 

2018

 

Consolidated Capital

 

  

 

Common Equity Tier 1(CET1) to risk-weighted assets

 

11.22

%

Tier 1 capital to risk-weighted assets

 

11.22

%

Total capital to risk-weighted assets

 

12.90

%

Tier 1 capital to average assets

 

9.09

%

 

 

 

 

Bank Capital

 

  

 

Common Equity Tier 1(CET1) to risk-weighted assets

 

10.42

%

Tier 1 capital to risk-weighted assets

 

10.42

%

Total capital to risk-weighted assets

 

11.31

%

Tier 1 capital to average assets

 

8.45

%

 

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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 26, 2018.  The call can be accessed via telephone at 877-405-1628; passcode 8376176.  A recorded replay will be accessible through November 2, 2019 by dialing 855-859-2056; passcode 8376176.

A slide presentation relating to the third quarter 2018 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 Financial Inc.

First Western Financial, Inc. is a financial services holding company headquartered in Denver, Colorado, with operations in Colorado, Arizona, Wyoming and California.  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,” and “Gross Revenue.” 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,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “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 risk of geographic concentration in Colorado, Arizona, Wyoming and California; the risk of changes in the economy affecting real estate values and liquidity; the risk in our ability to continue to originate residential real estate loans and sell such loans; risks specific to commercial loans and borrowers; the risk of claims and litigation pertaining to our fiduciary responsibilities; the risk of competition for investment managers and professionals; the risk of fluctuation in the value of our investment securities; the risk of changes in interest rates; and the risk of the adequacy of our

5


 

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 Prospectus filed with the U.S. Securities and Exchange Commission (“SEC”) dated July 18, 2018 (“Prospectus”), 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 of that Prospectus and the Risk Factors section of other documents we file with the SEC from time to time. 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

Larry Clark

310-622-8223

MYFW@finprofiles.com 

IR@myfw.com

 

 

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First Western Financial, Inc.

Consolidated Financial Summary (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ending

 

 

September 30,

 

June 30,

 

September 30,

(Dollars in thousands, except per share data)

    

2018

    

2018

    

2017

Interest and dividend income:

 

 

  

 

 

  

 

 

  

Loans, including fees

 

$

9,468

 

$

9,074

 

$

8,264

Investment securities

 

 

266

 

 

281

 

 

530

Federal funds sold and other

 

 

206

 

 

150

 

 

91

Total interest and dividend income

 

 

9,940

 

 

9,505

 

 

8,885

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

  

 

 

  

 

 

 

Deposits

 

 

1,761

 

 

1,411

 

 

1,016

Other borrowed funds

 

 

391

 

 

517

 

 

494

Total interest expense

 

 

2,152

 

 

1,928

 

 

1,510

Net interest income

 

 

7,788

 

 

7,577

 

 

7,375

Less: Provision for credit losses

 

 

18

 

 

 —

 

 

306

Net interest income, after provision for credit losses

 

 

7,770

 

 

7,577

 

 

7,069

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

  

 

 

  

 

 

 

Trust and investment management fees

 

 

4,770

 

 

4,689

 

 

4,815

Net gain on mortgage loans sold

 

 

1,159

 

 

1,359

 

 

899

Bank fees

 

 

361

 

 

455

 

 

674

Risk management and insurance fees

 

 

249

 

 

284

 

 

209

Income on company-owned life insurance

 

 

99

 

 

105

 

 

105

Net gain on sale of securities

 

 

 —

 

 

 —

 

 

43

Total non-interest income

 

 

6,638

 

 

6,892

 

 

6,745

Total income before non-interest expense

 

 

14,408

 

 

14,469

 

 

13,814

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

  

 

 

  

 

 

 

Salaries and employee benefits

 

 

7,221

 

 

7,660

 

 

7,081

Occupancy and equipment

 

 

1,427

 

 

1,527

 

 

1,422

Professional services

 

 

805

 

 

1,008

 

 

682

Technology and information systems

 

 

965

 

 

1,000

 

 

980

Data processing

 

 

697

 

 

687

 

 

598

Marketing

 

 

274

 

 

316

 

 

377

Amortization of other intangible assets

 

 

208

 

 

230

 

 

185

Total loss on sales/provision of other real estate owned

 

 

 —

 

 

 —

 

 

236

Other

 

 

579

 

 

656

 

 

573

Total non-interest expense

 

 

12,176

 

 

13,084

 

 

12,134

Income before income taxes

 

 

2,232

 

 

1,385

 

 

1,680

Income tax expense

 

 

543

 

 

337

 

 

632

Net income

 

 

1,689

 

 

1,048

 

 

1,048

Preferred stock dividends

 

 

(255)

 

 

(562)

 

 

(584)

Net income available to common shareholders

 

$

1,434

 

$

486

 

$

464

Earnings per common share:

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

0.19

 

$

0.08

 

$

0.08

 

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First Western Financial, Inc.

Consolidated Financial Summary (unaudited) (continued)

 

 

 

 

 

 

 

 

 

 

 

 

    

September 30,

    

June 30,

    

September 30,

 

 

2018

 

2018

 

2017

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

ASSETS

 

 

  

 

 

  

 

 

  

Cash and cash equivalents:

 

 

  

 

 

  

 

 

  

Cash and due from banks

 

$

1,232

 

$

994

 

$

519

Interest-bearing deposits in other financial institutions

 

 

69,186

 

 

57,470

 

 

19,795

Total cash and cash equivalents

 

 

70,418

 

 

58,464

 

 

20,314

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

 

45,492

 

 

47,890

 

 

64,332

Correspondent bank stock, at cost

 

 

2,392

 

 

3,477

 

 

2,984

Mortgage loans held for sale

 

 

19,238

 

 

35,064

 

 

25,231

Loans, net of allowance of $7,118, $7,100, and $7,289

 

 

850,199

 

 

835,544

 

 

782,569

Promissory notes from related parties

 

 

 —

 

 

2,125

 

 

5,782

Premises and equipment, net

 

 

6,263

 

 

6,255

 

 

7,285

Accrued interest receivable

 

 

2,854

 

 

2,565

 

 

2,272

Accounts receivable

 

 

4,736

 

 

5,504

 

 

6,559

Other receivables

 

 

1,841

 

 

1,908

 

 

 —

Other real estate owned, net

 

 

658

 

 

658

 

 

658

Goodwill

 

 

24,811

 

 

24,811

 

 

24,811

Other intangible assets, net

 

 

565

 

 

773

 

 

1,463

Deferred tax assets, net

 

 

4,626

 

 

4,971

 

 

7,608

Company-owned life insurance

 

 

14,614

 

 

14,515

 

 

14,215

Other assets

 

 

2,820

 

 

2,049

 

 

2,362

Total assets

 

$

1,051,527

 

$

1,046,573

 

$

968,445

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

  

 

 

  

 

 

  

Deposits:

 

 

  

 

 

  

 

 

  

Noninterest-bearing

 

$

219,400

 

$

212,225

 

$

218,102

Interest-bearing

 

 

659,239

 

 

631,517

 

 

594,943

Total deposits

 

 

878,639

 

 

843,742

 

 

813,045

Borrowings:

 

 

  

 

 

  

 

 

  

Federal Home Loan Bank Topeka borrowings

 

 

44,598

 

 

75,598

 

 

31,863

Subordinated Notes

 

 

6,560

 

 

13,435

 

 

13,435

Accrued interest payable

 

 

211

 

 

231

 

 

207

Other liabilities

 

 

7,355

 

 

8,609

 

 

8,725

Total liabilities

 

 

937,363

 

 

941,615

 

 

867,275

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

  

 

 

  

 

 

  

Total shareholders’ equity

 

 

114,164

 

 

104,958

 

 

101,170

Total liabilities and shareholders’ equity

 

$

1,051,527

 

$

1,046,573

 

$

968,445

 

8


 

First Western Financial, Inc.

Consolidated Financial Summary (unaudited) (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

 

September 30,

 

June 30,

 

September 30,

(Dollars in thousands)

    

2018

    

2018

    

2017

Loan Portfolio

 

 

  

 

 

  

 

 

  

Cash, Securities and Other

 

$

132,920

 

$

135,393

 

$

130,253

Construction and Development

 

 

37,423

 

 

35,760

 

 

34,471

1 - 4 Family Residential

 

 

327,674

 

 

307,794

 

 

264,058

Non-Owner Occupied CRE

 

 

165,670

 

 

164,438

 

 

177,962

Owner Occupied CRE

 

 

94,698

 

 

98,393

 

 

92,429

Commercial and Industrial

 

 

97,772

 

 

99,711

 

 

89,814

Total loans held for investment

 

$

856,157

 

$

841,489

 

$

788,987

Deferred costs, net

 

 

1,160

 

 

1,155

 

 

871

Gross loans

 

$

857,317

 

$

842,644

 

$

789,858

Total loans held for sale

 

$

19,238

 

$

35,064

 

$

25,231

 

 

 

 

 

 

 

 

 

 

Deposit Portfolio

 

 

 

 

 

 

 

 

 

Money market deposit accounts

 

$

444,580

 

$

394,759

 

$

285,418

Time deposits

 

 

148,425

 

 

166,670

 

 

224,224

Negotiable order of withdrawal accounts

 

 

64,777

 

 

68,742

 

 

83,654

Savings accounts

 

 

1,457

 

 

1,346

 

 

1,647

Total interest-bearing deposits

 

$

659,239

 

$

631,517

 

$

594,943

Noninterest-bearing accounts

 

$

219,400

 

$

212,225

 

$

218,102

Total deposits

 

$

878,639

 

$

843,742

 

$

813,045

 

9


 

First Western Financial, Inc.

Consolidated Financial Summary (unaudited) (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

September 30,

 

June 30,

 

September 30,

 

(Dollars in thousands)

    

2018

    

2018

    

2017

 

Average Balance Sheets

 

 

  

 

 

  

 

 

  

 

Average Assets

 

 

  

 

 

  

 

 

  

 

Interest-earnings assets:

 

 

  

 

 

  

 

 

  

 

Interest-bearing deposits in other financial institutions

 

$

41,538

 

$

35,550

 

$

33,008

 

Available-for-sale securities

 

 

48,438

 

 

49,821

 

 

93,884

 

Loans

 

 

857,676

 

 

829,944

 

 

748,673

 

Promissory notes from related parties

 

 

 —

 

 

5,305

 

 

5,759

 

Interest earning-assets

 

 

947,652

 

 

920,620

 

 

881,324

 

Mortgage loans held-for-sale

 

 

22,294

 

 

31,570

 

 

9,884

 

Total interest earning-assets, plus loans held-for-sale

 

 

969,946

 

 

952,190

 

 

891,208

 

Allowance for loan losses

 

 

(7,141)

 

 

(7,100)

 

 

(7,188)

 

Noninterest-earnings assets

 

 

72,922

 

 

73,245

 

 

93,361

 

Total assets

 

$

1,035,727

 

$

1,018,335

 

$

977,381

 

 

 

 

 

 

 

 

 

 

 

 

Average Liabilities and Shareholders’ Equity

 

 

  

 

 

  

 

 

  

 

Interest-bearing liabilities:

 

 

  

 

 

  

 

 

  

 

Interest-bearing deposits

 

$

640,507

 

$

588,916

 

$

581,526

 

Federal Home Loan Bank Topeka borrowings

 

 

44,804

 

 

54,185

 

 

65,385

 

Subordinated notes

 

 

8,489

 

 

13,435

 

 

13,435

 

Total interest-bearing liabilities

 

$

693,800

 

$

656,536

 

$

660,346

 

Noninterest-bearing liabilities:

 

 

  

 

 

  

 

 

  

 

Noninterest-bearing deposits

 

 

221,411

 

 

249,085

 

 

210,523

 

Other liabilities

 

 

8,132

 

 

7,875

 

 

8,209

 

Total noninterest-bearing liabilities

 

$

229,543

 

$

256,960

 

$

218,732

 

Shareholders’ equity

 

$

112,384

 

$

104,839

 

$

98,303

 

Total liabilities and shareholders’ equity

 

$

1,035,727

 

$

1,018,335

 

$

977,381

 

 

 

 

 

 

 

 

 

 

 

 

Yields (annualized)

 

 

  

 

 

  

 

 

  

 

Interest-bearing deposits in other financial institutions

 

 

1.98

%  

 

1.69

%  

 

1.10

%

Available-for-sale securities

 

 

2.20

%  

 

2.26

%  

 

2.26

%

Loans

 

 

4.42

%  

 

4.34

%  

 

4.39

%

Promissory notes from related parties

 

 

 —

%  

 

4.75

%  

 

3.54

%

Interest earning-assets

 

 

4.20

%  

 

4.13

%  

 

4.03

%

Mortgage loans held-for-sale

 

 

4.36

%  

 

3.81

%  

 

4.13

%

Total interest earning-assets, plus loans held-for-sale

 

 

4.20

%  

 

4.12

%  

 

4.03

%

Interest-bearing deposits

 

 

1.10

%  

 

0.96

%  

 

0.70

%

Federal Home Loan Bank Topeka borrowings

 

 

2.05

%  

 

1.92

%  

 

1.46

%

Subordinated notes

 

 

7.59

%  

 

7.65

%  

 

7.62

%

Total interest-bearing liabilities

 

 

1.24

%  

 

1.17

%  

 

0.91

%

Net interest margin

 

 

3.29

%  

 

3.29

%  

 

3.35

%

Interest rate spread

 

 

2.96

%  

 

2.96

%  

 

3.12

%

 

10


 

First Western Financial, Inc.

Consolidated Financial Summary (unaudited) (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Three Months Ended

 

 

 

September 30,

 

June 30,

 

September 30,

 

(Dollars in thousands, except per share data)

    

2018

    

2018

    

2017

 

Asset Quality

 

 

  

 

 

  

 

 

  

 

Nonperforming loans

 

$

18,388

 

$

3,052

 

$

5,231

 

Nonperforming assets

 

 

19,046

 

 

3,710

 

 

5,889

 

Net charge-offs (recoveries)

 

 

 —

 

 

 —

 

 

(1)

 

Nonperforming loans to total loans

 

 

2.14

%  

 

0.36

%  

 

0.66

%

Nonperforming assets to total assets

 

 

1.81

%  

 

0.35

%  

 

0.61

%

Allowance for loan losses to nonperforming loans

 

 

38.71

%  

 

232.63

%  

 

139.34

%

Allowance for loan losses to total loans

 

 

0.83

%  

 

0.84

%  

 

0.92

%

Net charge-offs to average loans

 

 

 —

%  

 

 —

%  

 

 —

%

 

 

 

 

 

 

 

 

 

 

 

Assets under management

 

$

5,626,163

 

$

5,415,918

 

$

5,179,905

 

 

 

 

 

 

 

 

 

 

 

 

Market Data

 

 

 

 

 

 

 

 

 

 

Book value per share at period end

 

$

14.33

 

$

13.52

 

$

13.16

 

Tangible book value per common share(1) 

 

$

11.14

 

$

9.19

 

$

8.62

 

Shares outstanding at period end

 

 

7,968,420

 

 

5,917,667

 

 

5,791,064

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Capital

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1(CET1) to risk-weighted assets

 

 

11.22

%  

 

7.04

%  

 

5.91

%  

Tier 1 capital to risk-weighted assets

 

 

11.22

%  

 

9.42

%  

 

7.97

%  

Total capital to risk-weighted assets

 

 

12.90

%  

 

12.12

%  

 

11.01

%  

Tier 1 capital to average assets

 

 

9.09

%  

 

7.74

%  

 

6.80

%  

 

 

 

 

 

 

 

 

 

 

 

Bank Capital

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1(CET1) to risk-weighted assets

 

 

10.42

%  

 

10.17

%  

 

9.54

%  

Tier 1 capital to risk-weighted assets

 

 

10.42

%  

 

10.17

%  

 

9.54

%  

Total capital to risk-weighted assets

 

 

11.31

%  

 

11.07

%  

 

10.47

%  

Tier 1 capital to average assets

 

 

8.45

%  

 

8.37

%  

 

8.27

%  

(1)

Represents a Non-GAAP financial measure. See “Reconciliation of Non-GAAP Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

 

11


 

First Western Financial, Inc.

Consolidated Financial Summary (unaudited) (continued)

 

Reconciliations of Non-GAAP Financial Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

    

As of and for the Three Months Ended

 

 

 

September 30,

 

June 30,

 

September 30,

 

(Dollars in thousands, except share and per share data)

 

2018

 

2018

 

2017

 

Tangible common

 

 

  

 

 

  

 

 

  

 

Total shareholders' equity

 

$

114,164

 

$

104,958

 

$

101,170

 

Less:

 

 

  

 

 

  

 

 

  

 

Preferred stock (liquidation preference)

 

 

 —

 

 

24,968

 

 

24,968

 

Goodwill

 

 

24,811

 

 

24,811

 

 

24,811

 

Other intangibles, net

 

 

565

 

 

773

 

 

1,463

 

Tangible common equity

 

$

88,788

 

$

54,406

 

$

49,928

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding, end of period

 

 

7,968,420

 

 

5,917,667

 

 

5,791,064

 

Tangible common book value per share

 

$

11.14

 

$

9.19

 

$

8.62

 

 

 

 

 

 

 

 

 

 

 

 

Net income, as reported

 

$

1,689

 

$

1,048

 

$

1,048

 

Less: Preferred stock dividends

 

 

255

 

 

562

 

 

584

 

Income available to common shareholders

 

$

1,434