First Western Financial (MYFW) Q4 2018 earnings summary

Executive summary

• First year as a public issuer delivered $5.6m net income and $0.64 diluted EPS; Q4 EPS was $0.22 versus a $0.09 loss YoY.

• IPO equity strengthened capital, enabled higher-cost funding retirements, and removed prior Basel III growth constraints; loan and deposit growth accelerated.

Financial highlights

• FY 2018 gross revenue was $57.8m versus $55.2m in 2017; net income rose to $5.6m from $2.0m, while income before tax increased 48.2% to $7.4m.

• Net interest income increased 11.1% to $30.6m; non-interest income declined 1.9% to $27.2m, including lower one-time legal settlement income, partly offset by higher mortgage gains.

• Loans grew 9.9% to $894.0m and deposits rose 14.9% to $937.8m at year-end; AUM declined 2.6% to $5.2bn.

Outlook and guidance

• Growth investment and stronger business development capacity support expected continued 2019 profit-center growth, particularly in Colorado and Arizona.

• Plans emphasize expanding existing markets, adding offices in attractive Western markets, growing core deposits, recruiting talent, and evaluating acquisitions.