Fourth Quarter 2021 Conference Call

Safe Har bor

This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the current views of First Western Financial, Inc.'s ("First Western") management with respect to, among other things, future events and First Western's financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "project," "future" "forecast," "goal," "target," "would" and "outlook," or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about First Western's industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond First Western's control. Accordingly, First Western cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although First Western believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Those following risks and uncertainties, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward- looking statements: the COVID-19 pandemic and its effects; integration risks in connection with acquisitions; the risk of geographic concentration in Colorado, Arizona, Wyoming and California; the risk of changes in the economy affecting real estate values and liquidity; the risk in our ability to continue to originate residential real estate loans and sell such loans; risks specific to commercial loans and borrowers; the risk of claims and litigation pertaining to our fiduciary responsibilities; the risk of competition for investment managers and professionals; the risk of fluctuation in the value of our investment securities; the risk of changes in interest rates; and the risk of the adequacy of our allowance for credit losses and the risk in our ability to maintain a strong core deposit base or other low-cost funding sources. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC") on March 12, 2021 and other documents we file with the SEC from time to time. All subsequent written and oral forward-looking statements attributable to First Western or persons acting on First Western's behalf are expressly qualified in their entirety by this paragraph. Forward-looking statements speak only as of the date of this presentation. First Western undertakes no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise (except as required by law).

Certain of the information contained herein may be derived from information provided by industry sources. The Company believes that such information is accurate and the sources from which it has been obtained are reliable; however, the Company cannot guaranty the accuracy of such information and has not independently verified such information.

This presentation contains certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of this presentation. Numbers in the presentation may not sum due to rounding.

Our common stock is not a deposit or savings account. Our common stock is not insured by the Federal Deposit Insurance Corporation or any governmental agency or instrumentality.

This presentation is not an offer to sell any securities and it is not soliciting an offer to buy any securities in any state or jurisdiction where the offer or sale is not permitted. Neither the SEC nor any state securities commission has approved or disapproved of the securities of the Company or passed upon the accuracy or adequacy of this presentation. Any representation to the contrary is a criminal offense. Except as otherwise indicated, this presentation speaks as of the date hereof. The delivery of this presentation shall not, under any circumstances, create any implication that there has been no change in the affairs of the Company after the date hereof.

2

Over view of 4Q21

  • Net income available to common shareholders of $1.9 million 4Q21 Earnings Diluted EPS of $0.23
  • Excluding acquisition-related expenses, adjusted net income of $4.8 million, or $0.57 per diluted share(1)

Teton

Financial Services

Acquisition

  • Acquisition closed on December 31, 2021
  • Upon closing, acquisition was immediately accretive to tangible book value
  • Integration proceeding on schedule with core banking system integration and consolidation of branches set for May 2022

Strong Organic

Balance Sheet

Growth

  • Record quarter of loan production resulted in net loan growth of $350.8 million, $252.3 million from acquisition and $98.5 organic loan growth(1), or 25% annualized, with increases across nearly all portfolios
  • Organic deposit growth(1) of 10% annualized
  • Tangible book value per common share(1) increased 22% annualized from 3Q21 and 21% from 4Q20

Asset Quality

Remains

Exceptional

(1) See Non-GAAP reconciliation

  • Non-performingassets declined to 0.17% of total assets from 0.21% at 3Q21
  • History of exceptionally low charge-offs continues

3

Net In com e Available t o Com m on Shar eholder s

an d Ear n in gs per Shar e

  • Net income of $1.9 million, or $0.23 diluted earnings per share, in 4Q21
  • Excluding acquisition-related expenses, adjusted diluted earnings per share(1) of $0.57 in 4Q21
  • Strong profitability and Teton Financial Services acquisition resulted in 6.3% and 5.4% increase in book value per share and tangible book value per share(1), respectively, from 3Q21
  • Earnings growth coming from combination of continued organic growth of more mature profit centers, contribution of newer profit centers ramping up, and accretive acquisitions

Net Income Available to Common Shareholders

Diluted Earnings per Share

$8,000

$0.90

$0.77

(1)

$0.81(1)

$0.80

$0.74

$6,331 (1)

$6,669 (1)

$0.78

$7,000

$0.76

$5,999

$0.70

(1)

$0.62

$0.57 (1)

$6,000

$4,979

(1)

$6,277

$6,417

$0.60

$4,776 (1)

$

0.61

$5,000

$0.50

$4,874

$4,000

$0.40

$3,000

$0.30

$2,000

$0.20

$1,917

$0.23

$1,000

$0.10

$0

$0.00

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Q4 2021

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Q4 2021

Net Income

Adjustments to Net Income

Net Income

Adjustments to Net Income

(1) See Non-GAAP reconciliation

4

Wealt h Man agem en t Segm en t Ear n in gs

  • Wealth Management segment earnings reflects contribution of private banking, commercial banking, and trust and investment management business lines
  • Growth in private banking, commercial banking, and TIM businesses replacing earnings generated by mortgage segment in 2020 and creating sustainable path to higher profitability over long-term
  • Decline in wealth management segment earnings from 3Q21 primarily due to the provision expense, reduction in PPP fee income, and accretion income on acquired loans

Wealth Management Segment Diluted Pre-Tax Earnings Per Share(1)

$4.50

$4.26

$3.81

$4.00

$3.50

$3.09

$3.00

$2.50

$2.00

$1.63

$1.50

$0.69$0.91

$0.73

$0.99

$0.86$1.01

$0.79$1.07

$0.71$0.75

$1.00

$0.50

$0.00

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Q4 2021

FY20

FY21

Wealth Management Segment Consolidated

(1) See Non-GAAP reconciliation

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First Western Financial Inc. published this content on 27 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 January 2022 22:02:54 UTC.