8-K
First Western Financial Inc (MYFW)
8-K
2022-03-04
For: 2022-03-04
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April 10, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 4, 2022
FIRST WESTERN FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
| Colorado | 001-38595 | 37-1442266 |
|---|---|---|
| (State or other jurisdiction of | (Commission | (I.R.S. Employer |
| incorporation or organization) | File Number) | Identification No.) |
| | | |
| 1900 16th Street, Suite 1200 | | |
| Denver , Colorado | | 80202 |
| (Address of principal executive offices) | | (Zip Code) |
Registrant’s telephone number, including area code: ( 303 ) 531-8100
Former name or former address, if changed since last report: Not Applicable
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| ☒ | Emerging growth company |
|---|---|
| | |
| ☒ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | **** | Trading Symbol | **** | Name of each exchange on which registered |
|---|---|---|---|---|
| Common Stock, no par value | | MYFW | | The Nasdaq Stock Market LLC |
Item 7.01Regulation FD Disclosure.
First Western Financial, Inc. (the “Company”) is furnishing investor presentation materials as Exhibit 99.1 to this Form 8-K, which may be presented at meetings with investors, analysts, and others, in whole or in part and possibly with modifications, during the fiscal year ending December 31, 2022.
As provided in General Instruction B.2 to Form 8-K, the information furnished in Exhibit 99.1 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| <br><br> | | |
|---|---|---|
| Exhibit<br>Number | | Description |
| | ||
| 99.1<br><br> | First Western Financial, Inc. Investor Presentation<br><br><br><br> | |
| 104 | | Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document). |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | | | |
|---|---|---|---|
| | | | FIRST WESTERN FINANCIAL, INC. |
| | | | |
| | | | |
| | Date: March 4, 2022 | | By: /s/ Scott C. Wylie |
| | | | Scott C. Wylie<br><br>Chairman, Chief Executive Officer and President |
| | | | |
| | | | |
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Exhibit 99.1
| INVESTOR PRESENTATION<br>March<br>2022 |
|---|
| Safe Harbor<br>2<br>This<br>presentation<br>contains<br>“forward<br>-<br>looking<br>statements”<br>within<br>the<br>meaning<br>of<br>Section<br>27<br>A<br>of<br>the<br>Securities<br>Act<br>of<br>1933<br>,<br>as<br>amended,<br>and<br>Section<br>21<br>E<br>of<br>the<br>Securities<br>Exchange<br>Act<br>of<br>1934<br>,<br>as<br>amended<br>..<br>These<br>forward<br>-<br>looking<br>statements<br>reflect<br>the<br>current<br>views<br>of<br>First<br>Western<br>Financial,<br>Inc<br>..<br>’s<br>(“First<br>Western”)<br>management<br>with<br>respect<br>to,<br>among<br>other<br>things,<br>future<br>events<br>and<br>First<br>Western’s<br>financial<br>performance<br>..<br>These<br>statements<br>are<br>often,<br>but<br>not<br>always,<br>made<br>through<br>the<br>use<br>of<br>words<br>or<br>phrases<br>such<br>as<br>“may,”<br>“should,”<br>“could,”<br>“predict,”<br>“potential,”<br>“believe,”<br>“will<br>likely<br>result,”<br>“expect,”<br>“continue,”<br>“will,”<br>“anticipate,”<br>“seek,”<br>“estimate,”<br>“intend,”<br>“plan,”<br>“project,”<br>“future”<br>“forecast,”<br>“goal,”<br>“target,”<br>“would”<br>and<br>“outlook,”<br>or<br>the<br>negative<br>variations<br>of<br>those<br>words<br>or<br>other<br>comparable<br>words<br>of<br>a<br>future<br>or<br>forward<br>-<br>looking<br>nature<br>..<br>These<br>forward<br>-<br>looking<br>statements<br>are<br>not<br>historical<br>facts,<br>and<br>are<br>based<br>on<br>current<br>expectations,<br>estimates<br>and<br>projections<br>about<br>First<br>Western’s<br>industry,<br>management’s<br>beliefs<br>and<br>certain<br>assumptions<br>made<br>by<br>management,<br>many<br>of<br>which,<br>by<br>their<br>nature,<br>are<br>inherently<br>uncertain<br>and<br>beyond<br>First<br>Western’s<br>control<br>..<br>Accordingly,<br>First<br>Western<br>cautions<br>you<br>that<br>any<br>such<br>forward<br>-<br>looking<br>statements<br>are<br>not<br>guarantees<br>of<br>future<br>performance<br>and<br>are<br>subject<br>to<br>risks,<br>assumptions<br>and<br>uncertainties<br>that<br>are<br>difficult<br>to<br>predict<br>..<br>Although<br>First<br>Western<br>believes<br>that<br>the<br>expectations<br>reflected<br>in<br>these<br>forward<br>-<br>looking<br>statements<br>are<br>reasonable<br>as<br>of<br>the<br>date<br>made,<br>actual<br>results<br>may<br>prove<br>to<br>be<br>materially<br>different<br>from<br>the<br>results<br>expressed<br>or<br>implied<br>by<br>the<br>forward<br>-<br>looking<br>statements<br>..<br>Those<br>following<br>risks<br>and<br>uncertainties,<br>among<br>others,<br>could<br>cause<br>actual<br>results<br>and<br>future<br>events<br>to<br>differ<br>materially<br>from<br>those<br>set<br>forth<br>or<br>contemplated<br>in<br>the<br>forward<br>-<br>looking<br>statements<br>:<br>the<br>COVID<br>-<br>19<br>pandemic<br>and<br>its<br>effects<br>;<br>integration<br>risks<br>in<br>connection<br>with<br>acquisitions<br>;<br>the<br>risk<br>of<br>geographic<br>concentration<br>in<br>Colorado,<br>Arizona,<br>Wyoming<br>and<br>California<br>;<br>the<br>risk<br>of<br>changes<br>in<br>the<br>economy<br>affecting<br>real<br>estate<br>values<br>and<br>liquidity<br>;<br>the<br>risk<br>in<br>our<br>ability<br>to<br>continue<br>to<br>originate<br>residential<br>real<br>estate<br>loans<br>and<br>sell<br>such<br>loans<br>;<br>risks<br>specific<br>to<br>commercial<br>loans<br>and<br>borrowers<br>;<br>the<br>risk<br>of<br>claims<br>and<br>litigation<br>pertaining<br>to<br>our<br>fiduciary<br>responsibilities<br>;<br>the<br>risk<br>of<br>competition<br>for<br>investment<br>managers<br>and<br>professionals<br>;<br>the<br>risk<br>of<br>fluctuation<br>in<br>the<br>value<br>of<br>our<br>investment<br>securities<br>;<br>the<br>risk<br>of<br>changes<br>in<br>interest<br>rates<br>;<br>and<br>the<br>risk<br>of<br>the<br>adequacy<br>of<br>our<br>allowance<br>for<br>credit<br>losses<br>and<br>the<br>risk<br>in<br>our<br>ability<br>to<br>maintain<br>a<br>strong<br>core<br>deposit<br>base<br>or<br>other<br>low<br>-<br>cost<br>funding<br>sources<br>..<br>Additional<br>information<br>regarding<br>these<br>and<br>other<br>risks<br>and<br>uncertainties<br>to<br>which<br>our<br>business<br>and<br>future<br>financial<br>performance<br>are<br>subject<br>is<br>contained<br>in<br>our<br>Annual<br>Report<br>on<br>Form<br>10<br>-<br>K<br>filed<br>with<br>the<br>U<br>..<br>S<br>..<br>Securities<br>and<br>Exchange<br>Commission<br>(“SEC”)<br>on<br>March<br>12<br>,<br>2021<br>and<br>other<br>documents<br>we<br>file<br>with<br>the<br>SEC<br>from<br>time<br>to<br>time<br>..<br>All<br>subsequent<br>written<br>and<br>oral<br>forward<br>-<br>looking<br>statements<br>attributable<br>to<br>First<br>Western<br>or<br>persons<br>acting<br>on<br>First<br>Western’s<br>behalf<br>are<br>expressly<br>qualified<br>in<br>their<br>entirety<br>by<br>this<br>paragraph<br>..<br>Forward<br>-<br>looking<br>statements<br>speak<br>only<br>as<br>of<br>the<br>date<br>of<br>this<br>presentation<br>..<br>First<br>Western<br>undertakes<br>no<br>obligation<br>to<br>publicly<br>update<br>or<br>otherwise<br>revise<br>any<br>forward<br>-<br>looking<br>statements,<br>whether<br>as<br>a<br>result<br>of<br>new<br>information,<br>future<br>events<br>or<br>otherwise<br>(except<br>as<br>required<br>by<br>law)<br>..<br>Certain<br>of<br>the<br>information<br>contained<br>herein<br>may<br>be<br>derived<br>from<br>information<br>provided<br>by<br>industry<br>sources<br>..<br>The<br>Company<br>believes<br>that<br>such<br>information<br>is<br>accurate<br>and<br>the<br>sources<br>from<br>which<br>it<br>has<br>been<br>obtained<br>are<br>reliable<br>;<br>however,<br>the<br>Company<br>cannot<br>guaranty<br>the<br>accuracy<br>of<br>such<br>information<br>and<br>has<br>not<br>independently<br>verified<br>such<br>information<br>..<br>This<br>presentation<br>contains<br>certain<br>non<br>-<br>GAAP<br>financial<br>measures<br>intended<br>to<br>supplement,<br>not<br>substitute<br>for,<br>comparable<br>GAAP<br>measures<br>..<br>Reconciliations<br>of<br>non<br>-<br>GAAP<br>financial<br>measures<br>to<br>GAAP<br>financial<br>measures<br>are<br>provided<br>at<br>the<br>end<br>of<br>this<br>presentation<br>..<br>Numbers<br>in<br>the<br>presentation<br>may<br>not<br>sum<br>due<br>to<br>rounding<br>..<br>Our<br>common<br>stock<br>is<br>not<br>a<br>deposit<br>or<br>savings<br>account<br>..<br>Our<br>common<br>stock<br>is<br>not<br>insured<br>by<br>the<br>Federal<br>Deposit<br>Insurance<br>Corporation<br>or<br>any<br>governmental<br>agency<br>or<br>instrumentality<br>..<br>This<br>presentation<br>is<br>not<br>an<br>offer<br>to<br>sell<br>any<br>securities<br>and<br>it<br>is<br>not<br>soliciting<br>an<br>offer<br>to<br>buy<br>any<br>securities<br>in<br>any<br>state<br>or<br>jurisdiction<br>where<br>the<br>offer<br>or<br>sale<br>is<br>not<br>permitted<br>..<br>Neither<br>the<br>SEC<br>nor<br>any<br>state<br>securities<br>commission<br>has<br>approved<br>or<br>disapproved<br>of<br>the<br>securities<br>of<br>the<br>Company<br>or<br>passed<br>upon<br>the<br>accuracy<br>or<br>adequacy<br>of<br>this<br>presentation<br>..<br>Any<br>representation<br>to<br>the<br>contrary<br>is<br>a<br>criminal<br>offense<br>..<br>Except<br>as<br>otherwise<br>indicated,<br>this<br>presentation<br>speaks<br>as<br>of<br>the<br>date<br>hereof<br>..<br>The<br>delivery<br>of<br>this<br>presentation<br>shall<br>not,<br>under<br>any<br>circumstances,<br>create<br>any<br>implication<br>that<br>there<br>has<br>been<br>no<br>change<br>in<br>the<br>affairs<br>of<br>the<br>Company<br>after<br>the<br>date<br>hereof<br>.. |
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| Office Locations<br>3<br>An Emerging High Performing Institution<br>Overview<br>▪<br>Niche<br>-<br>focused regional wealth manager<br>built on a private trust bank platform<br>▪<br>Headquartered in Denver, Colorado and<br>positioned in desirable, affluent and high<br>growth markets<br>Target Market<br>▪<br>Households of $1+ million liquid net worth<br>▪<br>High net worth and high growth markets<br>▪<br>Colorado, Arizona, Wyoming, California and<br>Montana<br>Company<br>Highlights<br>Competitive<br>Advantage<br>(as of 12/31/21)<br>▪<br>Assets:<br>$2.53 billion<br>▪<br>Total Loans:<br>$1.98 billion<br>▪<br>Total Deposits:<br>$2.21 billion<br>▪<br>AUM:<br>$7.35 billion<br>(for the year ending 12/31/21)<br>▪<br>Loan Growth:<br>17.0%<br>▪<br>Deposit Growth:<br>36.2%<br>▪<br>Asset Growth:<br>28.1%<br>▪<br>TBV/Share<br>(1)<br>Growth:<br>20.9%<br>▪<br>Operates as one integrated firm, not silos<br>▪<br>Team approach benefits both clients and<br>First Western<br>▪<br>Local boutique private trust bank offices<br>with central product experts<br>First Western Financial, Inc. (FW)<br>Financial Holding Company<br>First Western Trust Bank<br>Colorado state chartered bank<br>(18<br>locations)<br>First Western Merger Corporation<br>State licensed insurance agency<br>(1)<br>See Non<br>-<br>GAAP reconciliation |
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| 4<br>Investment Highlights<br>Proven Execution<br>on Growth<br>Strategies<br>Attractive<br>Markets and<br>Business Model<br>Strong Earnings<br>Momentum<br>▪<br>Significant revenue growth driving improved operating leverage and higher profitability<br>▪<br>TBV/share<br>(1)<br>increased 25% in 2020 and 21% in 2021<br>▪<br>Continued scale expected to drive further leverage and generate returns consistent with a high performing<br>institution over long term<br>▪<br>Acquisition of Teton Financial Services, Inc. provides additional catalyst for earnings growth in 2022<br>▪<br>Highly aligned with shareholder interests as insiders own ~19% of total shares outstanding<br>▪<br>Discounted valuation trading at just 1.63x TBV/share<br>(2)<br>High Insider<br>Ownership and<br>Discounted<br>Valuation<br>▪<br>Track record of generating organic growth, expansion and acquisitions<br>▪<br>Total assets up 58% in 2020 and 28% in 2021 with substantial increases in revenue and EPS<br>▪<br>Strengthening commercial banking platform creating more diverse loan portfolio and lower<br>-<br>cost deposit base<br>▪<br>Rapidly growing institution operating in high growth markets<br>▪<br>Diverse sources of recurring fee income that consistently represent more than 40% of total revenue<br>▪<br>Attractive, stable deposit base with noninterest<br>-<br>bearing and money market accounts comprising 77%<br>of total deposits<br>▪<br>Conservative underwriting and affluent client base results in exceptional asset quality with minimal credit losses<br>(1)<br>See Non<br>-<br>GAAP reconciliation<br>(2)<br>As of March 1, 2022 |
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| $4,556<br>$5,795<br>$7,602<br>$10,854<br>$38,429<br>$32,611<br>$0<br>$5,000<br>$10,000<br>$15,000<br>$20,000<br>$25,000<br>$30,000<br>$35,000<br>$40,000<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>2016<br>-<br>2020 Pre<br>-<br>Tax, Pre<br>-<br>Provision Income(1) ($000s)<br>5<br>Strong Operational and Financial Momentum<br>▪<br>Robust balance sheet growth<br>▪<br>Higher fee income driven by strengthened mortgage team<br>▪<br>Consistent new client acquisition activity driving growth in assets under management<br>▪<br>Highly leverageable operating platform driving improved efficiencies<br>▪<br>Outstanding asset quality and low credit costs<br>Drivers of Improved Performance<br>(1)<br>See Non<br>-<br>GAAP reconciliation<br>Adjusted Pre<br>-<br>Tax<br>,<br>Pre<br>-<br>Provision Income<br>(1<br>)<br>($000s) |
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| $9.19<br>$11.14<br>$11.50<br>$11.88<br>$12.38<br>$12.83<br>$13.15<br>$13.39<br>$14.13<br>$15.38<br>$16.44<br>$17.24<br>$17.98<br>$18.85<br>$19.87<br>$8.00<br>$10.00<br>$12.00<br>$14.00<br>$16.00<br>$18.00<br>$20.00<br>$22.00<br>MYFW TBV/Share<br>6<br>Improving Earnings Driving Outperformance<br>and Creating Shareholder Value<br>Discounted Valuation Provides Opportunity for Continued Outperformance as Multiple<br>Expands<br>(2)<br>(1)<br>See Non<br>-<br>GAAP reconciliation<br>(2)<br>Source: S&P Global Market Intelligence (January 1, 2020 through March 1, 2022)<br>TBV/Share<br>(1)<br>Up 116% Since July 2018 IPO |
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| Franchise Overview<br>7 |
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| 8<br>Great Markets, Scarce Investment Opportunity<br>▪<br>Ranked among states with highest GDP growth<br>▪<br>Strong job and population growth<br>▪<br>Experiencing significant in<br>-<br>migration from West Coast<br>states<br>▪<br>Attractive demographics with large amount of high net<br>worth individuals that utilize private banking and<br>investment management services<br>▪<br>Favorable tax laws for trusts and estates that attract<br>wealthy individuals<br>As of December 31, 2021<br>Current Ownership<br>Total Assets<br>($<br>bn<br>)<br>FirstBank<br>Private<br>28.8<br>NBH<br>Bank<br>Public (NYSE: NBHC)<br>7.2<br>Bank of Colorado<br>Private (Sub. Of Pinnacle<br>Bancorp<br>-<br>NE)<br>6.6<br>Alpine Bank<br>Private<br>6.2<br>Sunflower Bank<br>Private<br>5.7<br>ANB Bank<br>Private<br>3.6<br>Citywide<br>Banks<br>HTLF (Acquired in 2017)<br>2.7<br>First Western Trust Bank<br>Public (Nasdaq: MYFW)<br>2.5<br>Denver, CO<br>52%<br>Phoenix, AZ<br>15%<br>Fort Collins,<br>CO<br>17%<br>Boulder, CO<br>10%<br>Glenwood<br>Springs, CO<br>3%<br>Jackson, WY<br>3%<br>Deposits by State<br>Colorado<br>82%<br>Arizona<br>15%<br>Wyoming<br>3%<br>MSA<br>State<br>Market<br>Share<br>Projected % Change in<br>HHI (2021<br>-<br>2026)<br>(2)<br>Denver<br>-<br>Aurora<br>-<br>Lakewood<br>CO<br>0.73<br>11.00<br>Fort Collins<br>CO<br>2.60<br>13.45<br>Phoenix<br>-<br>Mesa<br>-<br>Scottsdale<br>AZ<br>0.16<br>13.18<br>Boulder<br>CO<br>1.17<br>11.41<br>Jackson<br>WY/ID<br>1.05<br>8.50<br>Glenwood Springs<br>CO<br>1.06<br>8.82<br>National Average<br>9.01<br>(1)<br>Source: S&P Global Market Intelligence as of 06/30/2021.<br>(2)<br>Percentage growth in household income (HHI).<br>Characteristics of First Western Markets<br>Deposits by MSA<br>(1)<br>MYFW is 2<br>nd<br>Largest Publicly Held CO Chartered Bank<br>Small Market Share Provides Large Growth Opportunity |
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| 9<br>MYFW: Our Five Core Strengths<br>Differentiated,<br>Proven in the<br>Marketplace<br>Built<br>-<br>in Operating<br>Leverage<br>Highly Desirable<br>Recurring Fee<br>Income<br>Experienced,<br>Tested Team<br>Unique<br>Opportunity for<br>Investors<br>▪<br>Niche<br>-<br>focused<br>franchise headquartered in Denver, Colorado<br>▪<br>Well<br>-<br>positioned in many<br>attractive markets<br>in Arizona, California, Colorado and Wyoming<br>▪<br>Specialized central expertise<br>to compete with siloed national, regional firms<br>▪<br>Delivered through<br>local, boutique trust banking teams<br>so clients “owned” by MYFW, not associates<br>▪<br>Strong profit center margins at maturity<br>, growth opportunities in current and new markets<br>▪<br>Revenue growth<br>in both fee income and net interest income, with neutral balance sheet<br>▪<br>Scalable,<br>leverageable high fixed cost, low variable cost Product and Support Centers<br>▪<br>Operating<br>expense investment already in place<br>for growth and expansion<br>▪<br>~50% fee income<br>,<br>consistently through MYFW’s history<br>▪<br>Primarily<br>recurring<br>trust and investment management (“TIM”) fees<br>▪<br>Low risk, “sticky” wealth/trust business<br>with comprehensive product offering<br>▪<br>Multiple entry points with ConnectView<br>®<br>–<br>proprietary review process to service,<br>cross<br>-<br>sell<br>▪<br>At critical mass but small market share,<br>many current and new market<br>opportunities<br>▪<br>Proven ability to expand: (1) Organically, (2) By expansion and (3) By acquisition<br>▪<br>Few large Colorado bank alternatives for investors and clients, creating<br>lift<br>-<br>out opportunities<br>▪<br>Attractive revenue and earnings growth story<br>trading at discounted valuation<br>▪<br>Executives are<br>major bank/professional firm trained<br>, with deep relationships in communities<br>▪<br>Achieved<br>growth through<br>business and economic<br>cycles<br>, capital constraints<br>▪<br>Healthy relationship with all regulators with<br>strong risk management<br>culture<br>▪<br>CEO with<br>proven track record<br>for creating value in previous bank ownership |
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| ▪<br>Corporate loans to match specific needs<br>▪<br>Well<br>-<br>versed in working with complex cash flows and business models<br>▪<br>Customized treasury management<br>products and services<br>10<br>Cross<br>-<br>Selling a Diverse Set of Products and Services<br>Commercial<br>Banking<br>▪<br>Fiduciary wealth management<br>with expert review of client objectives, creating solutions<br>▪<br>Irrevocable life insurance trust, conservatorship, successor trustee, directed custodial trusteeship<br>▪<br>WY tax<br>-<br>exempt asset protection, special needs trusts, escrow services, family office services<br>▪<br>Provide a<br>broad range of asset and sub asset classes,<br>with automated tax and basis management<br>▪<br>Create unique solutions through internal research, proprietary and third<br>-<br>party investment options<br>▪<br>Central team creates the platform for Portfolio Managers to service clients, manage accounts<br>▪<br>Wealth planning with specialized services (e.g. philanthropic)<br>▪<br>Proprietary ConnectView<br>®<br>approach<br>, with access to CFPs, CPAs and estate planning attorneys<br>▪<br>Charitable giving tax strategies, deferred<br>-<br>compensation plans, life insurance, key person insurance<br>▪<br>Mortgage banking<br>specializing in purchase money, high net worth lending<br>▪<br>Underwritten to Fannie Mae and Freddie Mac guidelines<br>▪<br>Targeted portfolio lending and secondary sales<br>▪<br>Retirement plan consultants<br>partnering with businesses to sponsor retirement plans<br>▪<br>Creative corporate retirement plan design, analysis solutions, fiduciary liability management<br>▪<br>ERISA compliance and education<br>Retirement /<br>401(k)<br>Plan Consulting<br>Residential<br>Mortgage Lending<br>Wealth Planning<br>Investment<br>Management<br>Trust<br>Our local profit centers team with specialized product experts through ConnectView®, with many points of entry |
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| $54.3<br>$55.2<br>$57.8<br>$64.3<br>$97.3<br>$96.2<br>$0.0<br>$10.0<br>$20.0<br>$30.0<br>$40.0<br>$50.0<br>$60.0<br>$70.0<br>$80.0<br>$90.0<br>$100.0<br>FY 2016<br>FY 2017<br>FY 2018<br>FY 2019<br>FY 2020<br>FY 2021<br>Net Interest Income<br>Non-Interest Income, excluding net gain/(loss) on sale of securities and assets<br>11<br>High Quality Revenues with<br>Predictable Sources of Recurring Income<br>Net Interest<br>Income<br>$56.5<br>58%<br>Mortgage<br>$16.1<br>17%<br>Bank<br>Fees<br>$1.8<br>2%<br>Insurance<br>$1.1<br>1%<br>Other<br>$0.9<br>1%<br>Trust &<br>Advisory<br>$20.2<br>21%<br>($ in millions)<br>Note: As of or for the period ended December 31, 2021. Totals may not add up due to rounding.<br>($ in millions)<br>FY 2021 Revenue Mix<br>Gross Revenue<br>(1)<br>(1)<br>See Non<br>-<br>GAAP reconciliation |
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| 12<br>Private Bank Model Generates Strong Fee Income<br>More than 40% of Operating Revenue Generated by Fee Income<br>62.8%<br>41.2%<br>37.9%<br>36.0%<br>34.6%<br>30.3%<br>27.8%<br>27.7%<br>26.0%<br>25.7%<br>24.6%<br>22.9%<br>18.3%<br>0.0%<br>10.0%<br>20.0%<br>30.0%<br>40.0%<br>50.0%<br>60.0%<br>70.0%<br>ALRS<br>MYFW<br>WASH<br>UMBF<br>PGC<br>UVSP<br>SYBT<br>CFR<br>TMP<br>CATC<br>TSC<br>FFWM<br>FRC<br>Noninterest Income/Operating Revenue<br>Peer Average<br>Source: S&P Capital IQ (for the 12 months ended December 31, 2021) |
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| Driving Profitable Growth<br>13 |
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| 14<br>Success in Expansion and Acquisition Growth<br>2006<br>–<br>2010 (3)<br>▪<br>Boulder, CO<br>▪<br>Century City, CA<br>▪<br>Scottsdale, AZ<br>2011<br>–<br>2015 (6)<br>▪<br>Aspen, CO<br>▪<br>DTC/Cherry Hills, CO<br>▪<br>Fort Collins, CO<br>▪<br>Jackson Hole, WY<br>▪<br>Laramie, WY<br>▪<br>Phoenix, AZ<br>2016<br>–<br>2020 (4)<br>▪<br>Broomfield, CO (2021)<br>▪<br>Greenwood Village, CO<br>▪<br>Lone Tree, CO<br>▪<br>Vail Valley, CO<br>2002<br>–<br>2005 (3)<br>▪<br>Cherry Creek, CO<br>▪<br>Denver, CO<br>▪<br>Northern Colorado, CO<br>2002<br>–<br>2005 (5)<br>▪<br>Westcor Insurance Group, Inc.<br>▪<br>Poudre River Valley Trust Co.<br>▪<br>Sprout & Associates, Inc.<br>▪<br>Sterling Partners<br>▪<br>Silversmith Financial Corp<br>2006<br>–<br>2010 (4)<br>▪<br>Reber/Russell Company<br>▪<br>Ryder, Stilwell Inc.<br>▪<br>Asset Purchase<br>–<br>Financial<br>Management Advisors, LLC<br>▪<br>Asset Purchase<br>–<br>GKM<br>Advisors, LLC<br>2011<br>–<br>2015 (1)<br>▪<br>Trust Department<br>Assets<br>–<br>First<br>National Bank of<br>Wyoming<br>2016<br>–<br>2020 (2)<br>▪<br>Asset Purchase<br>–<br>EMC<br>Holdings, Inc.<br>▪<br>Branch Purchase &<br>Assumption from<br>Simmons Bank<br>Office Openings<br>Acquisitions<br>2002<br>2022<br>3<br>5<br>6<br>9<br>12<br>10<br>16<br>12<br>#<br>#<br>Total Acquisitions<br>Total Offices<br>18<br>13<br>2021<br>-<br>2022 (1)<br>▪<br>Teton Financial<br>Services, Inc.<br>2021<br>-<br>2022 (3)<br>(1)<br>▪<br>Jackson Hole, WY<br>▪<br>Pinedale, WY<br>▪<br>Rock Springs, WY<br>(1)<br>Added through the Teton Financial Services, Inc. acquisition. Jackson Hole offices are<br>scheduled to be consolidated in May 2022 |
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| 15<br>Revenue Growth Strategies<br>Expand<br>commercial loan<br>production<br>platform<br>▪<br>Building expertise in specific vertical markets, e.g. medical and dental practices<br>▪<br>Capitalize on growing reputation to attract additional experienced commercial banking talent<br>Expand into new<br>markets with<br>attractive<br>demographics<br>▪<br>Vail Valley office opened in 2019<br>▪<br>Built team and revenue base to open office in Broomfield, CO in 3Q21<br>▪<br>Added team to focus on Bozeman, MT market in 2Q21<br>Execute on<br>Revenue<br>Synergies from<br>Teton Acquisition<br>▪<br>Capitalize on higher legal lending limit to expand relationships with existing clients and pursue<br>larger commercial clients<br>▪<br>Cross<br>-<br>sell MYFW’s larger offering of trust and wealth management products to new client base<br>▪<br>Continue adding banking talent to further accelerate market share gains in Wyoming<br>Execute on low<br>-<br>risk strategic<br>transactions that<br>add value to the<br>MYFW franchise<br>▪<br>Execute on minimally dilutive acquisitions<br>▪<br>Leverage infrastructure through branch acquisition transactions<br>▪<br>Proactive expansion, acquisition team |
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| 16<br>Recent M&A Transactions<br>Branch Purchase and Assumption<br>Whole Bank Acquisition<br>▪<br>Closed on May 18, 2020<br>▪<br>Acquisition of all of the Denver locations of Simmons<br>Bank (three branches and one loan production office)<br>▪<br>Assumed $63 million in deposits and $120 million in<br>loans related to the acquired locations<br>▪<br>Added scale, an attractive client base, and commercial<br>banking talent<br>Transaction Overview<br>Financial Impact<br>▪<br>Mid<br>-<br>teens earnings accretion in 2021<br>Transaction Overview<br>▪<br>Closed on December 31, 2021<br>▪<br>Acquisition of Teton Financial Services Inc., the holding<br>company for Rocky Mountain Bank<br>▪<br>Expands First Western’s footprint and market share in<br>Wyoming where favorable trust, estate and tax laws align<br>well with private banking and investment management<br>business model<br>▪<br>Added $379 million in deposits and $252 million in loans<br>▪<br>Adds scale and improves operating efficiencies<br>Financial Impact<br>▪<br>7.4% accretive to 2022 EPS (assuming fully phased<br>-<br>in<br>cost savings)<br>▪<br>Immediately accretive to TBV/share upon closing<br>▪<br>Adds low<br>-<br>cost deposits and higher<br>-<br>yielding loans that<br>will positively impact net interest margin |
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| 17<br>Strong Execution on Revenue Growth Strategies<br>▪<br>Accelerating business development, office expansion and accretive acquisitions all contributing to<br>the balance sheet growth driving improved operating leverage and higher profitability<br>▪<br>M&A strategy continuing with acquisition of Teton Financial Services<br>▪<br>Office expansion continuing with hiring of team to focus on Bozeman, MT market<br>(in millions)<br>Incremental Balance Sheet Growth<br>(1/1/20 through 12/31/21)<br>$550.1<br>$685.6<br>$360.7<br>$433.3<br>$0.0<br>$200.0<br>$400.0<br>$600.0<br>$800.0<br>$1,000.0<br>$1,200.0<br>Loans HFI (ex. PPP)<br>Deposits<br>Organic Growth<br>Acquisition<br>91.4% Increase in<br>Loans HFI (ex. PPP)<br>103.0% Increase in<br>Total Deposits |
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| 18<br>Accelerating Business Development Trends<br>Capital raised in July 2018 IPO has allowed for increased business development activities<br>$227.9<br>$268.2<br>$225.6<br>$317.9<br>$691.7<br>$561.2<br>$0.0<br>$100.0<br>$200.0<br>$300.0<br>$400.0<br>$500.0<br>$600.0<br>$700.0<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>$44.0<br>$62.2<br>$121.6<br>$149.0<br>$467.9<br>$206.6<br>$0.0<br>$100.0<br>$200.0<br>$300.0<br>$400.0<br>$500.0<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>(1)<br>Excluding PPP loans<br>(2)<br>Excluding acquired deposits<br>(in millions)<br>(in millions)<br>New Loan Production<br>(1)<br>Net Deposit Growth<br>(2) |
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| 19<br>Increased Scale and Back<br>-<br>Office Streamlining<br>Driving Improved Efficiencies<br>88.2%<br>85.4%<br>80.6%<br>59.8%<br>66.6%<br>50.0%<br>60.0%<br>70.0%<br>80.0%<br>90.0%<br>2017<br>2018<br>2019<br>2020<br>2021<br>(1)<br>See Non<br>-<br>GAAP reconciliation<br>Efficiency Ratio<br>(1) |
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| ▪<br>During 2020, expanded commercial banking team and added construction lending expertise<br>▪<br>Increase in commercial banking clients contributing to growth in total loans and low<br>-<br>cost deposits while<br>improving overall diversification<br>▪<br>Stronger commercial banking platform complements private banking and expanded mortgage capabilities<br>to create a more valuable franchise with additional catalysts for future growth<br>20<br>Commercial Banking Driving Growth<br>$977<br>$1,213<br>$1,055<br>$1,185<br>$1,401<br>$400<br>$600<br>$800<br>$1,000<br>$1,200<br>$1,400<br>$1,600<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>$908<br>$871<br>$975<br>$1,026<br>$1,121<br>$400<br>$600<br>$800<br>$1,000<br>$1,200<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>(1)<br>Reflects loans to commercial borrowers across all loan categories excludes SBA PPP loan balances due<br>to their short<br>-<br>term nature.<br>(in millions)<br>(in millions)<br>Up 23% Year<br>-<br>Over<br>-<br>Year<br>Up 43% Year<br>-<br>Over<br>-<br>Year<br>Total Commercial Loans<br>(1)<br>Total Commercial Deposits |
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| 21<br>Wealth Management Segment Earnings<br>(1)<br>See Non<br>-<br>GAAP reconciliation<br>$0.69<br>$0.73<br>$0.86<br>$0.79<br>$0.71<br>$1.60<br>$3.09<br>$0.91<br>$0.99<br>$1.01<br>$1.07<br>$0.75<br>$4.24<br>$3.81<br>$0.00<br>$0.50<br>$1.00<br>$1.50<br>$2.00<br>$2.50<br>$3.00<br>$3.50<br>$4.00<br>$4.50<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>FY20<br>FY21<br>Wealth Management Segment<br>Consolidated<br>▪<br>Wealth Management segment earnings reflects contribution of private banking, commercial<br>banking, and trust and investment management business lines<br>▪<br>Growth in private banking, commercial banking, and TIM businesses replacing earnings generated<br>by mortgage segment in 2020 and creating sustainable path to higher profitability over long<br>-<br>term<br>▪<br>Decline in wealth management segment earnings from 3Q21 primarily due to the provision<br>expense, reduction in PPP fee income, and accretion income on acquired loans<br>Wealth Management Segment Diluted Pre<br>-<br>Tax Earnings Per Share<br>(1) |
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| Recent Financial Trends<br>22 |
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| 23<br>Overview of 4Q21<br>Strong Organic<br>Balance Sheet<br>Growth<br>4Q21 Earnings<br>Teton<br>Financial Services<br>Acquisition<br>▪<br>Acquisition closed on December 31, 2021<br>▪<br>Upon closing, acquisition was immediately accretive to tangible book value<br>▪<br>Integration proceeding on schedule with core banking system integration and consolidation of branches<br>set for May 2022<br>▪<br>Non<br>-<br>performing assets declined to 0.17% of total assets from 0.21%<br>at 3Q21<br>▪<br>History of exceptionally low charge<br>-<br>offs continues<br>Asset Quality<br>Remains<br>Exceptional<br>▪<br>Record quarter of loan production resulted in net loan growth of $350.8 million, $252.3 million from<br>acquisition and $98.5 organic loan growth<br>(1)<br>, or 25% annualized, with increases across nearly all portfolios<br>▪<br>Organic deposit growth<br>(1)<br>of 10% annualized<br>▪<br>Tangible book value per common share<br>(1)<br>increased 22% annualized from 3Q21 and 21% from 4Q20<br>▪<br>Net income available to common shareholders of $1.9 million<br>▪<br>Diluted EPS of $0.23<br>▪<br>Excluding acquisition<br>-<br>related expenses, adjusted net income of $4.8 million, or $0.57 per diluted share<br>(1)<br>(1)<br>See Non<br>-<br>GAAP reconciliation |
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| 24<br>Net Income Available to Common Shareholders<br>and Earnings per Share<br>▪<br>Net income of $1.9 million, or $0.23 diluted earnings per share, in 4Q21<br>▪<br>Excluding acquisition<br>-<br>related expenses, adjusted diluted earnings per share<br>(1)<br>of $0.57 in 4Q21<br>▪<br>Strong profitability and Teton Financial Services acquisition resulted in 6.3% and 5.4% increase in book<br>value per share and tangible book value per share<br>(1)<br>, respectively, from 3Q21<br>▪<br>Earnings growth coming from combination of continued organic growth of more mature profit centers,<br>contribution of newer profit centers ramping up, and accretive acquisitions<br>$6,277<br>$6,417<br>$1,917<br>$4,979<br>$5,999<br>$6,331<br>$6,669<br>$4,776<br>$0<br>$1,000<br>$2,000<br>$3,000<br>$4,000<br>$5,000<br>$6,000<br>$7,000<br>$8,000<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Net Income<br>Adjustments to Net Income<br>(1)<br>$0.76<br>$0.78<br>$0.23<br>$0.62<br>$0.74<br>$0.77<br>$0.81<br>$0.57<br>$0.00<br>$0.10<br>$0.20<br>$0.30<br>$0.40<br>$0.50<br>$0.60<br>$0.70<br>$0.80<br>$0.90<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Net Income<br>Adjustments to Net Income<br>Net Income Available to Common Shareholders<br>Diluted Earnings per Share<br>(1)<br>See Non<br>-<br>GAAP reconciliation<br>(1)<br>(1)<br>(1)<br>(1)<br>(1)<br>(1)<br>(1)<br>$<br>4,874<br>$<br>0.61 |
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| 25<br>Loan Portfolio<br>▪<br>Total loans HFI increased $350.8 million from prior<br>quarter<br>▪<br>Teton Financial Services acquisition contributed $252.3<br>million in loans HFI<br>▪<br>Organic loan growth<br>(1)<br>of $98.5 million in 4Q21<br>▪<br>Strong organic growth across most portfolios<br>▪<br>New production in Cash, Securities and Other portfolio<br>partially offset by PPP forgiveness<br>4Q 2020<br>3Q 2021<br>4Q 2021<br>Cash, Securities and Other<br>$357,020<br>$293,837<br>$295,948<br>Construction and Development<br>131,111<br>132,141<br>178,716<br>1<br>-<br>4 Family Residential<br>455,038<br>502,439<br>580,872<br>Non<br>-<br>Owner Occupied CRE<br>281,943<br>358,369<br>482,622<br>Owner Occupied CRE<br>163,042<br>167,638<br>212,426<br>Commercial and Industrial<br>146,031<br>148,959<br>203,584<br>Total Loans HFI<br>$1,534,185<br>$1,603,383<br>$1,954,168<br>Mortgage loans held<br>-<br>for<br>-<br>sale (HFS)<br>161,843<br>51,309<br>30,620<br>Total Loans<br>$1,696,028<br>$1,654,692<br>$1,984,788<br>$252.3<br>$201.1<br>$144.6<br>$142.5<br>$133.4<br>$224.6<br>$128.1<br>$122.6<br>$91.5<br>$84.4<br>$122.3<br>$48.7<br>$30.5<br>$91.4<br>$40.6<br>$21.5<br>$0<br>$50<br>$100<br>$150<br>$200<br>$250<br>$300<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>Teton Acquired<br>Production<br>Loan Payoffs<br>PPP Forgiveness<br>(in millions)<br>$1,644<br>$1,731<br>$1,660<br>$1,648<br>$1,693<br>$1,655<br>$1,985<br>$0<br>$200<br>$400<br>$600<br>$800<br>$1,000<br>$1,200<br>$1,400<br>$1,600<br>$1,800<br>$2,000<br>$2,200<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>3Q21<br>4Q21<br>HFI<br>HFS<br>(1)<br>See Non<br>-<br>GAAP reconciliation<br>(2)<br>Excludes deferred (fees) costs, and amortized premium/(<br>unaccreted<br>discount), net<br>($ in thousands, as of quarter end)<br>Loan Portfolio Composition<br>(2)<br>Loan Portfolio Details<br>Loan Production & Loan Payoffs<br>Average Total Loans<br>(2)<br>Average<br>Period End |
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| 26<br>Total Deposits<br>▪<br>Total deposits increased $423.4 million from end of prior quarter<br>▪<br>Teton Financial Services acquisition contributed $379.2 million in deposits<br>▪<br>Organic deposit growth<br>(1)<br>of $44.2 million<br>▪<br>Strong new client acquisition activity resulted in $110 million in new deposit accounts in 4Q21<br>4Q 2020<br>3Q 2021<br>4Q 2021<br>Money market deposit accounts<br>$847,430<br>$905,196<br>$1,056,669<br>Time deposits<br>172,682<br>137,015<br>170,491<br>NOW<br>113,052<br>137,833<br>309,940<br>Savings accounts<br>5,289<br>5,620<br>32,299<br>Noninterest<br>-<br>bearing accounts<br>481,457<br>596,635<br>636,304<br>Total Deposits<br>$1,619,910<br>$1,782,299<br>$2,205,703<br>$1,577<br>$1,721<br>$1,705<br>$1,723<br>$1,805<br>$1,782<br>$2,206<br>$0<br>$500<br>$1,000<br>$1,500<br>$2,000<br>$2,500<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>3Q21<br>4Q21<br>Average<br>Period End<br>($ in millions)<br>Deposit Portfolio Composition<br>Total Deposits<br>(1) See Non<br>-<br>GAAP reconciliation |
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| 27<br>Trust and Investment Management<br>▪<br>Total assets under management increased $445.9 million from September 30, 2021 to $7.35 billion at<br>December 31, 2021<br>▪<br>The increase in asset balances was attributable to the Teton acquisition and improving market conditions<br>as well as account additions and new account growth<br>$6,255<br>$6,486<br>$6,762<br>$6,906<br>$7,352<br>$0<br>$1,000<br>$2,000<br>$3,000<br>$4,000<br>$5,000<br>$6,000<br>$7,000<br>$8,000<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Investment Agency<br>Managed Trust<br>401(k)/Retirement<br>Directed Trust<br>Custody<br>(in millions, as of quarter end)<br>Total Assets Under Management |
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| (1) All numbers represented do not include the impact of taxes<br>(2) The deferred loan origination expenses are recorded in non<br>-<br>interest expenses (Salaries and Benefits) and amortized throug<br>h net interest income<br>(3<br>) Includes $0.8 million in SBA fee income less $0.1 million of deferred loan origination expense<br>Paycheck Protection Program Overview<br>Impact on 4Q21 Financials<br>(1)<br>($ in Millions)<br>Net Interest Income<br>Amortization of SBA fee income and deferred loan origination<br>expense<br>(2)<br>$0.5<br>Interest income from PPP loans, less PPPLF funding cost<br>$0.1<br>Net Interest<br>Income<br>$0.6<br>Net Interest Margin Impact<br>6 bps<br>($ in Millions)<br>As<br>of 12/31<br>/21<br>Total Loans (existing PPP)<br>$46.8<br>PPP Loans Acquired (included in total)<br>$6.7<br>Total Loans Forgiven<br>$239.3<br>PPPLF advances<br>$23.6<br>Remaining Fees to be Recognized<br>Pre<br>-<br>Tax<br>(3)<br>$0.7<br>28 |
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| (1)<br>See Non<br>-<br>GAAP reconciliation<br>(2)<br>Gross Revenue for Capital Management includes amounts for the fourth quarter of 2020 through the completion of the sale of th<br>e L<br>A Fixed<br>Income Team on November 16, 2020. Financial results after that date for the unsold portion are presented in Wealth Management<br>..<br>29<br>Gross Revenue<br>▪<br>Gross revenue<br>(1)<br>decreased 7.5% from 3Q21, primarily due to lower net gain on mortgage loans<br>▪<br>Increases in most non<br>-<br>interest income generating areas compared to 3Q21<br>➢<br>Trust and investment management fees up 0.6%<br>➢<br>Bank fees up 35.8%<br>➢<br>Risk management and insurance fees up 125.3%<br>Adjusted<br>Non<br>-<br>interest<br>Income<br>$9,053<br>Net Interest<br>Income<br>$14,387<br>38.6%<br>61.4%<br>(1)<br>$23.4<br>$23.7<br>$23.7<br>$25.3<br>$23.4<br>$0.0<br>$5.0<br>$10.0<br>$15.0<br>$20.0<br>$25.0<br>$30.0<br>$35.0<br>Q4 2020⁽²⁾<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Wealth Management<br>Capital Management<br>Mortgage<br>(in millions)<br>4Q21 Gross Revenue<br>(1)<br>Gross Revenue<br>(1) |
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| 30<br>Net Interest Income and Net Interest Margin<br>▪<br>Net interest income decreased 3.1% from 3Q21, primarily due to lower PPP fees and purchase<br>accretion income<br>▪<br>Excluding PPP fees and purchase accretion income, net interest income increased $0.3 million from<br>3Q21<br>▪<br>Net interest margin, including PPP and purchase accretion, decreased 22 bps to 2.92%<br>▪<br>Net interest margin, excluding PPP and purchase accretion<br>(1)<br>, decreased 11 bps to 2.95%, primarily<br>due to lower loan yields<br>▪<br>Net interest margin should expand as excess liquidity is used to fund continued loan growth<br>$13,457<br>$13,053<br>$14,223<br>$14,846<br>$14,387<br>$0<br>$2,000<br>$4,000<br>$6,000<br>$8,000<br>$10,000<br>$12,000<br>$14,000<br>$16,000<br>$18,000<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>3.07%<br>(1)<br>2.88%<br>(1)<br>2.88%<br>(1)<br>3.06%<br>(1)<br>2.95%<br>3.10%<br>2.90%<br>3.01%<br>3.14%<br>2.92%<br>-0.50%<br>0.00%<br>0.50%<br>1.00%<br>1.50%<br>2.00%<br>2.50%<br>3.00%<br>3.50%<br>4.00%<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Net Interest Margin<br>Adjusted Net Interest Margin<br>(1)<br>(in thousands)<br>(1)<br>See Non<br>-<br>GAAP reconciliation<br>Net Interest Income<br>Net Interest Margin |
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| 31<br>Non<br>-<br>Interest Income<br>▪<br>Non<br>-<br>interest income decreased 9.1% from 3Q21<br>▪<br>Lower net gain on mortgage loans offset increases in most other areas<br>▪<br>Trust and Investment Management fees increased 6.8% from fourth quarter of 2020<br>▪<br>$0.5 million net gain on equity interests in 4Q21<br>$9,954<br>$10,615<br>$9,498<br>$10,495<br>$9,542<br>$0<br>$5,000<br>$10,000<br>$15,000<br>$20,000<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Trust and Investment Management Fees<br>Net Gain on Mortgage Loans<br>Bank Fees<br>Risk Management and Insurance Fees<br>Income on Company-Owned Life Insurance<br>Other<br>$4,868<br>$4,847<br>$5,009<br>$5,167<br>$5,197<br>$4,000<br>$4,200<br>$4,400<br>$4,600<br>$4,800<br>$5,000<br>$5,200<br>$5,400<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>(in thousands)<br>(in thousands)<br>Total Non<br>-<br>Interest Income<br>Trust and Investment Management Fees |
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| 32<br>Mortgage Operations<br>▪<br>Mortgage locks down 39% from prior quarter<br>▪<br>Refi/Purchase mix of 41% / 59% in 4Q21 compared to 39%<br>/ 61% in 3Q21 and 49% / 51% in 2Q21<br>▪<br>Profit margin down 38% due to decreased revenue as a<br>result of the decrease in locks<br>▪<br>Non<br>-<br>interest expense down 29% in Mortgage segment from<br>1Q21<br>$414.5<br>$490.8<br>$319.7<br>$256.1<br>$196.7<br>$32.4<br>$33.9<br>$41.2<br>$36.5<br>$34.3<br>$0<br>$100<br>$200<br>$300<br>$400<br>$500<br>$600<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Originations for Sale<br>Originations for Porfolio<br>$376.6<br>$359.4<br>$268.2<br>$279.0<br>$170.3<br>$0<br>$50<br>$100<br>$150<br>$200<br>$250<br>$300<br>$350<br>$400<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>(in millions)<br>$1.7<br>$2.1<br>$1.2<br>$2.3<br>$0.3<br>$4.3<br>$5.2<br>$3.9<br>$4.5<br>$2.5<br>40%<br>41%<br>31%<br>50%<br>12%<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Net Income<br>Revenue<br>Profit Margin<br>(in millions)<br>Mortgage Originations<br>Mortgage Details<br>Net Income, Revenue and Profit Margin<br>Mortgage Loan Locks |
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| 33<br>Non<br>-<br>Interest Expense and Efficiency Ratio<br>▪<br>Non<br>-<br>interest expense increased 24.7% from 3Q21<br>▪<br>4Q21 included $3.7 million of acquisition<br>-<br>related expense, compared with $0.3 million in 3Q21<br>▪<br>Excluding acquisition<br>-<br>related expense, non<br>-<br>interest expense increased from 3Q21 primarily due to higher<br>bonus accruals resulting from strong loan and deposit production<br>$171<br>(1)<br>$4<br>(1)<br>$74<br>(1)<br>$337<br>(1)<br>$3,700<br>(1)<br>$15,614<br>$15,629<br>$15,521<br>$16,469<br>$20,530<br>$0<br>$5,000<br>$10,000<br>$15,000<br>$20,000<br>$25,000<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Non-Interest Expense<br>Adjustments to Non-Interest Expense<br>(1)<br>66.0%<br>66.0%<br>65.1%<br>63.7%<br>71.8%<br>0%<br>20%<br>40%<br>60%<br>80%<br>100%<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>(1)<br>See Non<br>-<br>GAAP reconciliation<br>Total Non<br>-<br>Interest Expense<br>Operating Efficiency Ratio<br>(1)<br>(in thousands) |
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| 34<br>Asset Quality<br>▪<br>Stable asset quality across the portfolio<br>▪<br>Immaterial net charge<br>-<br>offs again in the quarter<br>▪<br>$0.8 million provision for loan losses related to growth in total loans<br>▪<br>Non<br>-<br>performing assets decreased to 0.17% of total assets from 0.21% in 3Q21<br>▪<br>ALL/Adjusted Total Loans<br>(1)<br>decreased to 0.88%<br>in 4Q21 from 0.91% in 3Q21, consistent with strong<br>asset quality and immaterial losses<br>0.22%<br>0.18%<br>0.16%<br>0.21%<br>0.17%<br>0.00%<br>0.20%<br>0.40%<br>0.60%<br>0.80%<br>1.00%<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>0.00%<br>0.00%<br>0.00%<br>0.00%<br>0.00%<br>0.00%<br>0.20%<br>0.40%<br>0.60%<br>0.80%<br>1.00%<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Non<br>-<br>Performing Assets/Total Assets<br>Net Charge<br>-<br>Offs/Average Loans<br>(1)<br>Adjusted Total Loans<br>–<br>Total Loans minus PPP loans and acquired Loans; see non<br>-<br>GAAP reconciliation |
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| 35<br>Capital and Liquidity Overview<br>10.54%<br>10.54%<br>13.54%<br>9.31%<br>0.00%<br>2.00%<br>4.00%<br>6.00%<br>8.00%<br>10.00%<br>12.00%<br>14.00%<br>16.00%<br>Tier 1 Capital to<br>Risk-Weighted<br>Assets<br>CET1 to Risk-<br>Weighted Assets<br>Total Capital to<br>Risk-Weighted<br>Assets<br>Tier 1 Capital to<br>Average Assets<br>Liquidity Funding Sources<br>(as of 12/31/21)<br>Liquidity Reserves:<br>Total Available Cash<br>$ 383,279<br>Unpledged Investment Securities<br>37,315<br>Borrowed Funds:<br>Unsecured<br>:<br>Credit Lines<br>54,000<br>Secured<br>:<br>FHLB Available<br>509,659<br>Brokered Remaining Capacity<br>507,004<br>Total Liquidity Funding Sources<br>$ 1,491,752<br>Loan to Deposit Ratio<br>88.4%<br>$91,662<br>$104,411<br>$130,704<br>$187,139<br>$11.50<br>$13.15<br>$16.44<br>$19.87<br>$10.00<br>$15.00<br>$20.00<br>$25.00<br>$30.00<br>$60,000<br>$80,000<br>$100,000<br>$120,000<br>$140,000<br>$160,000<br>$180,000<br>$200,000<br>4Q18<br>4Q19<br>4Q20<br>4Q21<br>TCE<br>TBV/Share<br>(in thousands)<br>(1)<br>See Non<br>-<br>GAAP reconciliation<br>Consolidated Capital Ratios<br>(as of 12/31/21)<br>Tangible Common Equity / TBV per Share<br>(1)<br>(in thousands) |
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| Creating Additional Shareholder Value<br>36 |
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| 37<br>2022 Outlook and Priorities<br>▪<br>First Western is well positioned to deliver another strong year of organic and acquisitive<br>growth in 2022<br>▪<br>Increasing production from commercial banking platform expected to result in strong<br>organic loan growth<br>▪<br>Focused on fully realizing the synergies from Teton Financial Services acquisition<br>▪<br>Continued investment in new banking talent and market expansion should continue to<br>create additional sources of organic growth<br>▪<br>Capitalize on the benefits of increased scale to continue investing in technology and talent<br>while still realizing improved operating leverage<br>▪<br>Balance sheet is well positioned to benefit from rising interest rates<br>▪<br>Evaluate additional accretive acquisition opportunities<br>▪<br>Continue executing well and further enhancing the value of the First Western franchise |
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| 38<br>Long<br>-<br>Term Goals to Drive Shareholder Value<br>▪<br>Drive to $5 billion in total assets, $25 billion TIM assets through both organic growth and acquisitions<br>▪<br>~50 offices<br>▪<br>$7<br>-<br>8 million in revenue per office<br>▪<br>60% contribution margin per office<br>▪<br>Build footprint, scale and operating leverage with M&A<br>▪<br>Capital and earnings accretive<br>▪<br>Create, roll out virtual private bank<br>▪<br>Robo advisor tied to bank<br>▪<br>“Buy up” into expert advice<br>▪<br>Upgrade wealth management platform<br>▪<br>Fully integrated front end<br>▪<br>Sell wholesale TIM services to other banks<br>Our mission is to be the BPBFWWMC<br>–<br>Best Private Bank for the Western Wealth Management Client<br>We believe First Western can be a unique, niche focused regional powerhouse with high fee income and consistent strong<br>earnings from our scalable wealth management platform |
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| MYFW’s core strengths provide the foundation for driving shareholder value<br>39<br>A Unique and Attractive Investment<br>Differentiated,<br>Proven in the<br>Marketplace<br>Built<br>-<br>in Operating<br>Leverage<br>Highly Desirable<br>Recurring Fee<br>Income<br>Experienced,<br>Tested Team<br>Unique<br>Opportunity for<br>Investors |
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| Appendix<br>40 |
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| Organizational Overview<br>41 |
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| Name<br>Title<br>Joined<br>FW<br>Years in<br>Industry<br>Prior Experience<br>Scott C. Wylie<br>Chairman,<br>CEO & President<br>2002<br>34<br>▪<br>Chairman<br>&<br>CEO, Northern Trust Bank of Colorado<br>▪<br>Chairman &<br>CEO, Trust Bank of Colorado<br>▪<br>CEO, Equitable Bancshares of Colorado and Women’s Bank,<br>Chairman, Equitable Bank<br>▪<br>Chairman, American Fundware<br>▪<br>President<br>&<br>CEO, Bank and Trust of Puerto Rico<br>▪<br>Associate<br>, First Boston Corporation<br>Julie A. Courkamp<br>Chief<br>Financial Officer and Chief<br>Operating Officer, Director &<br>Treasurer<br>2006<br>21<br>▪<br>Assurance services with PricewaterhouseCoopers<br>▪<br>Executive roles within First Western with responsibility for<br>Accounting & Finance, Risk, Technology, Operations and<br>Human Resources<br>John E. Sawyer<br>Chief Investment Officer<br>2017<br>28<br>▪<br>Chief Investment & Fiduciary Officer, BBVA Compass Bank<br>▪<br>President & COO, Florida<br>-<br>based boutique wealth<br>management firm<br>▪<br>Executive with Credit Suisse, Morgan Keegan & Co., and<br>First Tennessee Capital Markets<br>Scott<br>J. Lawley<br>Chief Credit Officer<br>2018<br>34<br>▪<br>Sr. Credit Officer & Segment Risk Officer, Huntington<br>National Bank<br>▪<br>Credit advisor, chief underwriter, CRE credit officer PNC<br>Bank, US Bank<br>▪<br>Lending positions<br>with Fleet Bank<br>Matt Cassell<br>President, Commercial Banking<br>2020<br>24<br>▪<br>Colorado Market President, Simmons Bank<br>▪<br>President<br>-<br>Colorado, Bank SNB<br>▪<br>Market President, Community Banks of Colorado<br>Josh M. Wilson<br>Regional President, CO/WY/AZ<br>2008<br>22<br>▪<br>CFO,<br>international oil and gas operating company<br>▪<br>PC President<br>at<br>First Western<br>▪<br>Executive with Bank One, JP Morgan and Vectra Private Bank<br>42<br>Team: Ready to Take MYFW to the Next Level |
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| Name<br>Director Since<br>Primary Business<br>Scott C. Wylie<br>2002<br>▪<br>First Western Financial,<br>Inc.<br>Julie A. Caponi, CPA<br>2017<br>▪<br>Former Finance Executive at Arconic,<br>Inc. (fka Alcoa Inc.)<br>▪<br>Former audit partner at Deloitte<br>▪<br>Board member & Audit Committee chair for FCF (NYSE)<br>Julie A. Courkamp<br>2021<br>▪<br>First Western Financial, Inc.<br>David R. Duncan<br>2011<br>▪<br>Energy<br>▪<br>Winery Executive, Silver Oak<br>Cellars<br>▪<br>Entrepreneur,<br>board member, business leader<br>Thomas A. Gart<br>2013<br>▪<br>Real<br>Estate Developer<br>▪<br>Specialty Retail Executive<br>▪<br>Family business, PE investing across broad range of industries<br>Patrick H. Hamill<br>2004<br>▪<br>Real Estate Developer<br>▪<br>Home Builder Executive<br>▪<br>Entrepreneur, business/community leader, real estate expertise<br>Luke A. Latimer<br>2015<br>▪<br>Utility Maintenance<br>▪<br>Construction Executive<br>▪<br>Family business,<br>public bank board<br>Scott C. Mitchell<br>2021<br>▪<br>President, U.S. Engineering, Metalworks<br>▪<br>President of several successful manufacturing companies<br>▪<br>Six Sigma Master Black Belt<br>Eric D. Sipf, CPA<br>(1)<br>2003<br>▪<br>Former<br>Healthcare Executive<br>▪<br>US Army<br>▪<br>Asset management, finance, bank board, M&A<br>Mark L. Smith<br>2002<br>▪<br>Real<br>Estate Developer<br>▪<br>Entrepreneur, community leadership, real estate expertise<br>Joseph C. Zimlich, CPA<br>2004<br>▪<br>Family Office Executive<br>▪<br>Corporate leadership, board, and investment management<br>43<br>MYFW’s Sophisticated Board of Directors<br>(1)<br>CPA license inactive. |
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| Working as a team to grow relationships<br>44<br>Integrated Team Approach in Boutique Offices<br>President<br>Private<br>Bankers<br>Lenders<br>Portfolio<br>Managers<br>Wealth<br>Advisor<br>Trust Officer<br>Team<br>-<br>based<br>incentives<br>Relationship<br>-<br>based<br>wealth management<br>Many relationship<br>managers to one client<br>Product group<br>specialists<br>Holistic view of the client<br>–<br>ConnectView<br>® |
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| 45<br>Organizational Structure Built for Scale<br>Full Bank and Trust:<br>▪<br>Aspen, CO<br>▪<br>Boulder, CO<br>▪<br>Cherry Creek, CO<br>▪<br>Denver, CO<br>▪<br>DTC/Cherry Hills, CO<br>▪<br>Northern Colorado<br>▪<br>Jackson Hole, WY<br>▪<br>Rock Springs, WY<br>▪<br>Pinedale, WY<br>▪<br>Scottsdale, AZ<br>▪<br>Broomfield<br>, CO<br>▪<br>Lone Tree, CO<br>▪<br>Phoenix, AZ<br>▪<br>Vail Valley, Avon, CO<br>Loan Production Offices:<br>▪<br>Ft. Collins, CO<br>▪<br>Greenwood Village, CO<br>Trust Offices:<br>▪<br>Century City, CA<br>▪<br>Laramie, WY<br>▪<br>Investment Management<br>▪<br>Fiduciary/ Trust<br>▪<br>Wealth Planning<br>▪<br>Retirement Services<br>▪<br>Insurance<br>▪<br>Mortgage Services<br>▪<br>Treasury Management<br>First Western<br>Profit Centers<br>Product Groups<br>Support Centers<br>▪<br>Finance & Accounting<br>▪<br>Risk & Compliance<br>▪<br>Enterprise Technology<br>▪<br>Human Capital<br>▪<br>Credit Analysis<br>▪<br>Bank & Trust/Investment<br>Operations<br>▪<br>Marketing/Branding<br>Big operating leverage from expert, high fixed cost teams<br>Very profitable when mature |
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| Non<br>-<br>GAAP Reconciliations<br>46 |
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| 47<br>Non<br>-<br>GAAP Reconciliation<br>Consolidated Gross<br>Revenue<br>For the Years Ended,<br>(Dollars in thousands)<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>Total<br>income before non<br>-<br>interest<br>expense<br>$53,394<br>$54,501<br>$57,617<br>$63,976<br>$92,600<br>$95,429<br>Less: Net gain<br>on securities<br>114<br>81<br>-<br>119<br>-<br>489<br>Less: Net gain<br>on sale of assets<br>-<br>-<br>-<br>183<br>-<br>-<br>Plus:<br>Provision for credit loss<br>985<br>788<br>180<br>662<br>4,682<br>1,230<br>Gross revenue<br>$54,265<br>$55,208<br>$57,797<br>$64,336<br>$97,282<br>$96,170<br>Consolidated Efficiency Ratio<br>For the Years Ended,<br>(Dollars in thousands)<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>Non<br>-<br>interest expense<br>$49,823<br>$49,494<br>$50,195<br>$53,784<br>$59,537<br>$68,149<br>Less: Amortization<br>747<br>784<br>831<br>374<br>14<br>17<br>Less: Acquisition related expenses<br>-<br>-<br>-<br>-<br>684<br>4,101<br>Less: Goodwill impairment<br>-<br>-<br>-<br>1,572<br>-<br>-<br>Less: Provision on other real estate owned<br>-<br>-<br>-<br>-<br>176<br>-<br>Less: Loss on assets held<br>for sale<br>-<br>-<br>-<br>-<br>553<br>-<br>Plus:<br>Gain on sale of LA fixed income team<br>-<br>-<br>-<br>-<br>62<br>-<br>Adjusted non<br>-<br>interest expense<br>$49,076<br>$48,710<br>$49,364<br>$51,838<br>$58,172<br>$64,031<br>Net interest income<br>$24,457<br>$27,576<br>$30,624<br>$32,061<br>$46,102<br>$56,509<br>Non<br>-<br>interest income<br>29,922<br>27,713<br>27,173<br>32,577<br>51,180<br>40,150<br>Less: Net gain on securities<br>114<br>81<br>-<br>119<br>-<br>489<br>Less: Net gain on sale of assets<br>-<br>-<br>-<br>183<br>-<br>-<br>Total income<br>$54,265<br>$55,208<br>$57,797<br>$64,336<br>$97,282<br>$96,170<br>Efficiency ratio<br>90.4%<br>88.2%<br>85.4%<br>80.6%<br>59.8%<br>66.6%<br>Consolidated Adjusted<br>Pre<br>-<br>tax,<br>Pre<br>-<br>provision<br>Income<br>For the Twelve Months Ended December 31,<br>(Dollars in thousands)<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>Net<br>Income<br>before income tax<br>,<br>as reported<br>$3,571<br>$5,007<br>$7,422<br>$10,192<br>$33,063<br>$<br>27,280<br>Plus: Provision<br>for loan losses<br>985<br>788<br>180<br>662<br>4,682<br>1,230<br>Pre<br>-<br>tax, Pre<br>-<br>provision Income<br>$4,556<br>$5,795<br>$7,602<br>$10,854<br>$37,745<br>$28,510<br>Plus: Acquisition related<br>expenses<br>-<br>-<br>-<br>-<br>684<br>4,101<br>Adjusted Pre<br>-<br>tax<br>,<br>Pre<br>-<br>provision Income<br>$<br>4,556<br>$<br>5,795<br>$7,602<br>$<br>10,854<br>$<br>38,429<br>$32,611 |
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| 48<br>Non<br>-<br>GAAP Reconciliation<br>Consolidated Tangible Common<br>Book Value Per Share<br>As<br>of<br>the Three Months Ended,<br>(Dollars in thousands)<br>Dec. 31, 2018<br>Dec. 31, 2019<br>Dec. 31, 2020<br>September 30, 2021<br>Dec. 31<br>, 2021<br>Total shareholders' equity<br>$116,875<br>$127,678<br>$154,962<br>$175,129<br>$219,041<br>Less:<br>Preferred stock (liquidation preference)<br>-<br>-<br>-<br>-<br>-<br>Goodwill and other intangibles, net<br>25,213<br>19,714<br>24,258<br>24,246<br>31,902<br>Intangibles held for sale<br>(1)<br>-<br>3,553<br>-<br>-<br>Tangible common equity<br>91,662<br>104,411<br>$130,704<br>150,883<br>187,139<br>Common shares outstanding, end of period<br>7,968,420<br>7,940,168<br>7,951,773<br>8,002,874<br>9,419,271<br>Tangible common book value per share<br>$11.50<br>$13.15<br>$16.44<br>$18.85<br>$19.87<br>Net income available to common shareholders<br>$1,917<br>Return on tangible common equity (annualized)<br>4.10%<br>(1)<br>Represents the intangible portion of assets held for sale<br>Consolidated Efficiency Ratio<br>For the Three Months Ended,<br>(Dollars in thousands)<br>December 31, 2020<br>March 31, 2021<br>June 30, 2021<br>September 30, 2021<br>December 31, 2021<br>Non<br>-<br>interest expense<br>$15,614<br>$15,629<br>$15,521<br>$16,469<br>$20,530<br>Less: amortization<br>4<br>4<br>4<br>5<br>4<br>Less: acquisition related expenses<br>153<br>-<br>70<br>332<br>3,696<br>Less:<br>provision on other real estate owned<br>76<br>-<br>-<br>-<br>-<br>Less: loss on assets<br>held for sale<br>-<br>-<br>-<br>-<br>-<br>Plus: gain on sale of LA fixed income team<br>62<br>-<br>-<br>-<br>-<br>Adjusted non<br>-<br>interest expense<br>$15,443<br>$15,625<br>$15,447<br>$16,132<br>$16,830<br>Net interest income<br>$13,457<br>$13,053<br>$14,223<br>$14,846<br>$14,387<br>Non<br>-<br>interest income<br>9,954<br>10,615<br>9,498<br>10,495<br>9,542<br>Less: Net gain on equity interests<br>-<br>-<br>-<br>-<br>489<br>Less: Net gain<br>on sale of assets<br>-<br>-<br>-<br>-<br>-<br>Adjusted non<br>-<br>interest income<br>9,954<br>10,615<br>9,498<br>10,495<br>9,053<br>Total income<br>$23,411<br>$23,668<br>$23,721<br>$25,341<br>$23,440<br>Efficiency ratio<br>66.0%<br>66.0%<br>65.1%<br>63.7%<br>71.8% |
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| 49<br>Non<br>-<br>GAAP Reconciliation<br>Wealth Management Gross Revenue<br>For the Three Months Ended,<br>(Dollars in thousands)<br>December 31, 2020<br>March 31, 2021<br>June 30, 2021<br>September 30, 2021<br>December 31, 2021<br>Total income before non<br>-<br>interest expense<br>$17,973<br>$18,471<br>$19,782<br>$20,438<br>$20,619<br>Less: Net gain on equity interests<br>-<br>-<br>-<br>-<br>489<br>Plus: Provision for loan loss<br>695<br>-<br>12<br>406<br>812<br>Gross revenue<br>$18,668<br>$18,471<br>$19,794<br>$20,844<br>$20,942<br>Capital Management Gross Revenue<br>For the Three Months Ended,<br>(Dollars in thousands)<br>December 31, 2020<br>March 31, 2021<br>June 30, 2021<br>September 30, 2021<br>December 31, 2021<br>Total income before non<br>-<br>interest expense<br>$423<br>$<br>-<br>$<br>$<br>$<br>Plus: Provision for loan loss<br>-<br>-<br>-<br>-<br>-<br>Gross revenue<br>$423<br>$<br>-<br>$<br>$<br>$<br>Mortgage Gross Revenue<br>For the Three Months Ended,<br>(Dollars in thousands)<br>December 31, 2020<br>March 31, 2021<br>June 30, 2021<br>September 30, 2021<br>December 31, 2021<br>Total income before non<br>-<br>interest expense<br>$4,320<br>$5,197<br>$3,927<br>$4,497<br>$2,498<br>Plus: Provision for loan loss<br>-<br>-<br>-<br>-<br>-<br>Gross revenue<br>$4,320<br>$5,197<br>$3,927<br>$4,497<br>$2,498<br>Consolidated Gross Revenue<br>For the Three Months Ended,<br>(Dollars in thousands)<br>December 31, 2020<br>March 31, 2021<br>June 30, 2021<br>September 30, 2021<br>December 31, 2021<br>Total income before non<br>-<br>interest expense<br>$22,716<br>$23,668<br>$23,709<br>$24,935<br>$23,117<br>Less: Net gain on equity interests<br>-<br>-<br>-<br>-<br>489<br>Plus: Provision for loan loss<br>695<br>-<br>12<br>406<br>812<br>Gross revenue<br>$23,411<br>$23,668<br>$23,721<br>$25,341<br>$23,440<br>Diluted Pre<br>-<br>Tax Earnings Per Share<br>For The Three<br>Months<br>Ended<br>For The<br>Years Ended<br>(Dollars in thousands)<br>December 31,<br>2020<br>March 31, 2021<br>June 30, 2021<br>September 30,<br>2021<br>December 31,<br>2021<br>December 31,<br>2020<br>December 31,<br>2021<br>Non<br>-<br>Mortgage income before income tax<br>$5,386<br>$5,917<br>$6,983<br>$6,199<br>$2,279<br>$12,085<br>21,378<br>Plus: Acquisition<br>-<br>related<br>expenses<br>153<br>-<br>70<br>332<br>3,696<br>684<br>4,098<br>Mortgage income before income tax<br>1,716<br>2,122<br>1,205<br>2,267<br>308<br>20,978<br>5,902<br>Less: Income tax expense including acquisition tax effect<br>2,276<br>2,040<br>1,927<br>2,129<br>1,507<br>8,705<br>7,603<br>Net income available to common shareholders<br>$4,979<br>$5,999<br>$6,331<br>$6,669<br>$4,776<br>$25,042<br>$23,775<br>Diluted weighted average shares<br>8,015,780<br>8,098,680<br>8,213,900<br>8,246,353<br>8,370,998<br>7,961,904<br>8,235,178<br>Non<br>-<br>Mortgage Segment<br>Diluted Pre<br>-<br>Tax Earnings Per Share<br>$0.69<br>$0.73<br>$0.86<br>$0.79<br>$0.71<br>$1.60<br>$3.09<br>Consolidated Diluted Pre<br>-<br>Tax Earnings Per Share<br>$0.91<br>$0.99<br>$1.01<br>$1.07<br>$0.75<br>$4.24<br>$3.81 |
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| 50<br>Non<br>-<br>GAAP Reconciliation<br>Adjusted net<br>income available to common shareholders<br>For the Three Months Ended,<br>(Dollars in thousands, except per share data)<br>December 31, 2020<br>March 31, 2021<br>June 30, 2021<br>September 30, 2021<br>December 31, 2021<br>Net income available to common shareholders<br>$4,874<br>$5,999<br>$6,277<br>$6,417<br>$1,917<br>Plus: acquisition<br>related expense including tax impact<br>105<br>-<br>54<br>252<br>2,859<br>Plus: loss on intangibles held for sale<br>including t<br>ax<br>impact<br>-<br>-<br>-<br>-<br>-<br>Adjusted<br>net income to common shareholders<br>$4,979<br>$5,999<br>$6,331<br>$6,669<br>$4,776<br>Adjusted diluted earnings per share<br>For the Three Months Ended,<br>(Dollars in thousands, except per share data)<br>December 31, 2020<br>March 31, 2021<br>June 30, 2021<br>September 30, 2021<br>December 31, 2021<br>Earnings per share<br>$0.61<br>$0.74<br>$0.76<br>$0.78<br>$0.23<br>Plus: acquisition related expenses including tax impact<br>0.01<br>-<br>0.01<br>0.03<br>0.34<br>Plus:<br>loss on intangibles held for sale including tax impact<br>-<br>-<br>-<br>-<br>-<br>Adjusted earnings<br>per share<br>$0.62<br>$0.74<br>$0.77<br>$0.81<br>$0.57<br>Allowance<br>for loan losses to Bank originated loans excluding PPP<br>As of<br>(Dollars in thousands)<br>September 30, 2021<br>December 31, 2021<br>Gross loans<br>$1,603,383<br>$1,954,168<br>Less: Branch acquisition<br>117,465<br>360,661<br>Less: PPP loans<br>61,838<br>40,062<br>Loans excluding acquired and PPP<br>1,424,080<br>1,553,445<br>Allowance for loan losses<br>12,964<br>13,732<br>Allowance for loan losses to Bank originated loans excluding<br>PPP<br>0.91%<br>0.88%<br>Organic loan growth (annualized)<br>As of<br>(Dollars in thousands)<br>September 30, 2021<br>December 31, 2021<br>Total loans held for investment<br>$1,603,383<br>$1,954,168<br>Quarter<br>-<br>over<br>-<br>quarter growth in total loans held for investment<br>69,198<br>350,785<br>Less: loans acquired through Teton acquisition<br>-<br>252,275<br>Organic quarter<br>-<br>over<br>-<br>quarter growth in total loans held for investment<br>69,198<br>98,510<br>Organic<br>loan growth<br>24.58%<br>Organic deposit growth (annualized)<br>As of<br>(Dollars in thousands)<br>September 30, 2021<br>December 31, 2021<br>Total deposits<br>$1,782,299<br>$2,205,703<br>Quarter<br>-<br>over<br>-<br>quarter growth in total deposits<br>103,246<br>423,404<br>Less: deposits acquired through Teton acquisition<br>-<br>379,227<br>Organic quarter<br>-<br>over<br>-<br>quarter growth in total deposits<br>103,246<br>44,177<br>Organic<br>deposit growth<br>9.91% |
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| 51<br>Non<br>-<br>GAAP Reconciliation<br>Adjusted net<br>interest<br>margin<br>For the Three Months Ended<br>March 31, 2021<br>For the Three Months Ended<br>June 30, 2021<br>For the Three Months Ended<br>September 30, 2021<br>For the Three Months Ended<br>December 31, 2021<br>(Dollars in thousands)<br>Average<br>Balance<br>Interest<br>Earned/Paid<br>Average<br>Yield/Rate<br>Average<br>Balance<br>Interest<br>Earned/Paid<br>Average<br>Yield/Rate<br>Average<br>Balance<br>Interest<br>Earned/Paid<br>Average<br>Yield/Rate<br>Average<br>Balance<br>Interest<br>Earned/Paid<br>Average<br>Yield/Rate<br>Interest<br>-<br>bearing deposits in<br>other financial institutions<br>213,577<br>91<br>292,615<br>92<br>266,614<br>105<br>279,406<br>109<br>PPP adjustment<br>21,173<br>5<br>17,115<br>4<br>1,636<br>-<br>9,556<br>3<br>Available<br>-<br>for<br>-<br>sale securities<br>31,936<br>196<br>26,474<br>169<br>29,130<br>180<br>36,001<br>226<br>PPP adjustment<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>Loans<br>1,554,990<br>14,212<br>1,573,553<br>15,287<br>1,592,800<br>15,861<br>1,653,920<br>15,398<br>PPP adjustment<br>(171,263)<br>(945)<br>(176,396)<br>(1,583)<br>(81,476)<br>(1,081)<br>(51,825)<br>(622)<br>Purchase Accretion<br>adjustment<br>-<br>(344)<br>-<br>(260)<br>-<br>35<br>-<br>398<br>Adjusted total Interest<br>-<br>earning assets<br>1,650,413<br>13,215<br>1,773,360<br>13,709<br>1,808,704<br>15,100<br>1,927,058<br>15,512<br>Interest<br>-<br>bearing deposits<br>974<br>866<br>829<br>813<br>PPP adjustment<br>-<br>-<br>-<br>-<br>Federal Home Loan Bank<br>Topeka and Federal Reserve<br>borrowings<br>132<br>117<br>82<br>55<br>PPP adjustment<br>(109)<br>(93)<br>(59)<br>(31)<br>Subordinated notes<br>340<br>342<br>389<br>477<br>Adjusted total interest<br>-<br>bearing liabilities<br>1,337<br>1,232<br>1,241<br>1,314<br>Net interest income<br>11,878<br>12,477<br>13,859<br>14,198<br>Adjusted<br>net interest margin<br>2.88%<br>2.88%<br>3.06%<br>2.95% |
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