8-K
First Western Financial Inc (MYFW)
8-K
2022-06-06
For: 2022-06-06
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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): June 6, 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 7.01 Regulation FD Disclosure.
First Western Financial, Inc. (the “Company”) is furnishing presentation materials as Exhibit 99.1 to this Form 8-K that will be used at the annual meeting of shareholders on June 8, 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 | Annual Meeting of Shareholders Presentation dated June 8, 2022 | |
| 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: June 6, 2022 | | By: /s/ Scott C. Wylie |
| | | | Scott C. Wylie |
| | | | |
| | | | Chairman, Chief Executive Officer and President |
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Exhibit 99.1
| 2022 Annual Meeting of Shareholders<br>June 8, 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>15<br>,<br>2022<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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| 3<br>2021 Review and Highlights<br>▪<br>Strong execution on growth strategies resulted in a superior level of financial performance<br>➢<br>Member of “<br>Hovde’s<br>High Performers Class of 2022”<br>➢<br>Named Bank & Thrift<br>Sm<br>-<br>All Star by Piper Sandler<br>▪<br>Combination of organic growth and acquisitions continues to improve operating leverage<br>and profitability<br>▪<br>Growth in commercial/private banking and investment management businesses providing<br>more sustainable source of improved profitability, while mortgage business returns to its<br>intended role as a complementary source of fee income<br>▪<br>Asset quality remains exceptional despite ongoing impact of pandemic, supply chain<br>disruptions, and labor shortages<br>▪<br>Teton Financial Services acquisition provides increased presence in attractive Wyoming<br>markets and additional catalyst for earnings growth in 2022<br>▪<br>Strong financial performance creating significant increase in shareholder value<br>➢<br>Tangible book value per share increased more than 20% in 2021<br>(1)<br>➢<br>$130 million increase in market capitalization in 2021<br>(1)<br>See Non<br>-<br>GAAP reconciliation |
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| 4<br>Teton Financial Services Acquisition<br>Transaction Overview<br>▪<br>Closed on December 31, 2021<br>▪<br>Acquisition of Teton Financial Services Inc., the holding company for Rocky Mountain Bank<br>▪<br>Expands First Western’s footprint and market share in Wyoming where favorable trust, estate<br>and tax laws align well with private banking and investment management business model<br>▪<br>Added $379 million in deposits and $252 million in loans<br>▪<br>Adds scale and improves operating efficiencies<br>▪<br>Systems integration completed in mid<br>-<br>May 2022<br>Financial Impact<br>▪<br>7.4% accretive to 2022 EPS (assuming fully phased<br>-<br>in cost savings)<br>▪<br>Immediately accretive to TBV/share upon closing<br>▪<br>Added low<br>-<br>cost deposits and higher<br>-<br>yielding loans that are positively impacting net interest margin |
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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>Strong contributions from multiple fee<br>income areas<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, Pre<br>-<br>Provision Income<br>(1)<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>$20.25<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>Consistent Increase in Shareholder Value<br>(1)<br>See Non<br>-<br>GAAP reconciliation<br>TBV/Share<br>(1)<br>Up 120% Since July 2018 IPO |
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| 7<br>Strong Execution on Growth Strategies<br>Driving Significant Outperformance<br>(1)<br>Source: S&P Capital IQ (January 1, 2020 through June 1, 2022) |
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| Driving Profitable Growth<br>8 |
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| 9<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 (2)<br>▪<br>Greenwood Village, 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>14<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 (5)<br>▪<br>Broomfield, CO<br>▪<br>Jackson Hole, WY<br>(1)<br>▪<br>Pinedale, WY<br>(1)<br>▪<br>Rock Springs, WY<br>(1)<br>▪<br>Bozeman, MT<br>(1)<br>Added through the Teton Financial Services, Inc. acquisition; The two Jackson Hole<br>offices were consolidated in May 2022 |
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| 10<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 synergies<br>from Teton<br>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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| 11<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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| 12<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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| 13<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>14<br>Commercial Banking Driving Growth<br>$1,213<br>$1,055<br>$1,185<br>$1,401<br>$1,472<br>$400<br>$600<br>$800<br>$1,000<br>$1,200<br>$1,400<br>$1,600<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>$871<br>$975<br>$1,026<br>$1,121<br>$1,127<br>$400<br>$600<br>$800<br>$1,000<br>$1,200<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Q1 2022<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 29% Year<br>-<br>Over<br>-<br>Year<br>Up 21% Year<br>-<br>Over<br>-<br>Year<br>Total Commercial Loans<br>(1)<br>Total Commercial Deposits |
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| 15<br>Wealth Management Segment Earnings<br>(1)<br>See Non<br>-<br>GAAP reconciliation<br>$0.73<br>$0.86<br>$0.79<br>$0.71<br>$0.77<br>$1.60<br>$3.09<br>$0.99<br>$1.01<br>$1.07<br>$0.75<br>$0.80<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>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Q1 2022<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>Wealth Management segment pre<br>-<br>tax EPS increased 93% in 2021<br>Wealth Management Segment Diluted Pre<br>-<br>Tax Earnings Per Share<br>(1) |
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| Creating Additional Shareholder Value<br>16 |
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| 17<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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| 18<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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| Non<br>-<br>GAAP Reconciliations<br>19 |
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| 20<br>Non<br>-<br>GAAP Reconciliation<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 Pre<br>-<br>tax, 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 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>$27,280<br>Plus: Provision 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, Pre<br>-<br>provision Income<br>$4,556<br>$5,795<br>$7,602<br>$10,854<br>$38,429<br>$32,611 |
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| 21<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>Jun 30, 2018<br>Sep 30, 2018<br>Dec 31, 2018<br>Mar 31, 2019<br>Jun<br>30, 2019<br>Sep 30, 2019<br>Dec 31, 2019<br>Mar 31, 2020<br>Jun 30, 2020<br>Sep 30, 2020<br>Dec 31, 2020<br>Total shareholders' equity<br>$104,958<br>$114,164<br>$116,875<br>$119,668<br>$122,157<br>$125,732<br>$127,678<br>$128,703<br>$139,417<br>$149,576<br>$154,962<br>Less:<br>Preferred stock (liquidation<br>preference)<br>24,968<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>Goodwill and other intangibles, net<br>25,584<br>25,376<br>25,213<br>25,040<br>23,327<br>19,722<br>19,714<br>19,712<br>24,267<br>24,263<br>24,258<br>Intangibles held for sale<br>(1)<br>-<br>-<br>-<br>-<br>-<br>3,553<br>3,553<br>3,000<br>3,000<br>3,000<br>-<br>Tangible common equity<br>54,406<br>88,788<br>91,662<br>94,628<br>98,830<br>102,457<br>104,411<br>105,991<br>112,150<br>122,313<br>130,704<br>Common shares outstanding, end of<br>period<br>5,917,667<br>7,968,420<br>7,968,420<br>7,968,420<br>7,983,866<br>7,983,284<br>7,940,168<br>7,917,489<br>7,939,024<br>7,951,749<br>7,951,773<br>Tangible common book value per share<br>$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>Consolidated Tangible Common<br>Book Value Per Share<br>As<br>of<br>the Three Months Ended,<br>(Dollars in thousands)<br>Mar 31, 2021<br>Jun 30, 2021<br>Sep 30, 2021<br>Dec 31, 2021<br>Mar 31, 2022<br>Total shareholders' equity<br>$161,439<br>$167,986<br>$175,129<br>$219,041<br>$223,266<br>Less:<br>Goodwill and other intangibles, net<br>24,254<br>24,250<br>24,246<br>31,902<br>32,335<br>Tangible common equity<br>137,185<br>143,736<br>150,883<br>187,139<br>190,931<br>Common shares outstanding, end of period<br>7,957,900<br>7,994,832<br>8,002,874<br>9,419,271<br>9,430,007<br>Tangible common book value per share<br>$17.24<br>$17.98<br>$18.85<br>$19.87<br>$20.25<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>March 31, 2021<br>June 30, 2021<br>September 30,<br>2021<br>December 31,<br>2021<br>March 31, 2022<br>December 31,<br>2020<br>December 31,<br>2021<br>Non<br>-<br>Mortgage income before income tax<br>$5,917<br>$6,983<br>$6,199<br>$2,279<br>$7,011<br>$12,085<br>$21,378<br>Plus: Acquisition<br>-<br>related<br>expenses<br>-<br>70<br>332<br>3,696<br>527<br>684<br>4,098<br>Mortgage income before income tax<br>2,122<br>1,205<br>2,267<br>308<br>305<br>20,978<br>5,902<br>Less: Income tax expense including acquisition tax effect<br>2,040<br>1,927<br>2,129<br>1,507<br>1,921<br>8,705<br>7,603<br>Net income available to common shareholders<br>$5,999<br>$6,331<br>$6,669<br>$4,776<br>$5,922<br>$25,042<br>$23,775<br>Diluted weighted average shares<br>8,098,680<br>8,213,900<br>8,246,353<br>8,370,998<br>9,762,602<br>7,961,904<br>8,235,178<br>Non<br>-<br>Mortgage Segment<br>Diluted Pre<br>-<br>Tax Earnings Per Share<br>$0.73<br>$0.86<br>$0.79<br>$0.71<br>$0.77<br>$1.60<br>$3.09<br>Consolidated Diluted Pre<br>-<br>Tax Earnings Per Share<br>$0.99<br>$1.01<br>$1.07<br>$0.75<br>$0.80<br>$4.24<br>$3.81 |
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