Press Release
First Western Reports Fourth Quarter 2022 Financial Results
Fourth Quarter 2022 Summary
- Total deposits increased
$237.8 million , at an annualized rate of 43.9%, in Q4 2022 - Total loans held for investment increased
$121.2 million , at an annualized rate of 20.6%, in Q4 2022 - Net income available to common shareholders of
$5.5 million in Q4 2022, compared to$6.2 million in Q3 2022 and$1.9 million in Q4 2021 - Diluted EPS of
$0.56 in Q4 2022, compared to$0.64 in Q3 2022 and$0.23 in Q4 2021 - Pre-tax, pre-provision net income(1) of
$8.5 million in Q4 2022, compared to $10.0 million in Q3 2022 and$3.4 million in Q4 2021 - Book value per common share increased to
$25.37 , or 2.5%, from$24.74 as of Q3 2022, and was up 9.1% from$23.25 as of Q4 2021
Net income available to common shareholders was
“With our conservatively underwritten, well diversified loan portfolio and the financial strength of the clients we serve, we have consistently maintained strong asset quality during past economic downturns and we expect it to continue performing well this year. At the same time, given the strong business development capabilities we have built and the increasing traction we are getting in our newer markets, we expect to continue generating solid balance sheet growth, realizing more operating leverage, and delivering a higher level of earnings. While it appears that the macroeconomic environment will be challenging in 2023, we believe we are well positioned to continue profitably growing our franchise and creating shareholder value,” said
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
For the Three Months Ended | |||||||||||
(Dollars in thousands, except per share data) | 2022 | 2022 | 2021 | ||||||||
Earnings Summary | |||||||||||
Net interest income | $ | 21,842 | $ | 22,906 | $ | 14,407 | |||||
Provision for loan losses | 1,197 | 1,756 | 812 | ||||||||
Total non-interest income | 6,561 | 6,345 | 9,516 | ||||||||
Total non-interest expense | 19,905 | 19,260 | 20,524 | ||||||||
Income before income taxes | 7,301 | 8,235 | 2,587 | ||||||||
Income tax expense | 1,830 | 2,014 | 670 | ||||||||
Net income available to common shareholders | 5,471 | 6,221 | 1,917 | ||||||||
Adjusted net income available to common shareholders(1) | 5,617 | 6,337 | 4,776 | ||||||||
Basic earnings per common share | 0.58 | 0.66 | 0.24 | ||||||||
Adjusted basic earnings per common share(1) | 0.59 | 0.67 | 0.59 | ||||||||
Diluted earnings per common share | 0.56 | 0.64 | 0.23 | ||||||||
Adjusted diluted earnings per common share(1) | 0.58 | 0.66 | 0.57 | ||||||||
Return on average assets (annualized) | 0.79 | % | 0.97 | % | 0.37 | % | |||||
Adjusted return on average assets (annualized)(1) | 0.82 | 0.99 | 0.91 | ||||||||
Return on average shareholders' equity (annualized) | 9.17 | 10.70 | 4.28 | ||||||||
Adjusted return on average shareholders' equity (annualized)(1) | 9.41 | 10.90 | 10.66 | ||||||||
Return on tangible common equity (annualized)(1) | 10.48 | 12.28 | 4.10 | ||||||||
Adjusted return on tangible common equity (annualized)(1) | 10.76 | 12.51 | 10.21 | ||||||||
Net interest margin | 3.32 | 3.76 | 2.92 | ||||||||
Efficiency ratio(1) | 67.66 | 64.94 | 71.77 |
____________________
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Operating Results for the Fourth Quarter 2022
Revenue
Gross revenue (1) was
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Net Interest Income
Net interest income for the fourth quarter of 2022 was
Relative to the fourth quarter of 2021, net interest income increased 51.6% from
Net Interest Margin
Net interest margin for the fourth quarter of 2022 decreased 44 bps to 3.32% from 3.76% reported in the third quarter of 2022, primarily due to a 106 bps increase in average cost of funds, driven by a rising rate environment and a highly competitive deposit market.
The yield on interest-earning assets increased to 4.93% in the fourth quarter of 2022 from 4.38% in the third quarter of 2022 and the cost of interest-bearing deposits increased to 2.09% in the fourth quarter of 2022 from 0.73% in the third quarter of 2022.
Relative to the fourth quarter of 2021, net interest margin increased from 2.92%, primarily due to increased yields attributable to the rising rate environment and higher average loan balances as a result of strong organic loan growth and the
Non-interest Income
Non-interest income for the fourth quarter of 2022 was
Relative to the fourth quarter of 2021, non-interest income decreased 31.1% from
Non-interest Expense
Non-interest expense for the fourth quarter of 2022 was
Relative to the fourth quarter of 2021, non-interest expense decreased 3.0% from
The impact of the merger and acquisition activity was as follows (in thousands):
As of or for the Three Months Ended | ||||||||||
2022 | 2022 | 2021 | ||||||||
Adjusted Net Income Available to Common Shareholders(1) | ||||||||||
Net income available to common shareholders | $ | 5,471 | $ | 6,221 | $ | 1,917 | ||||
Plus: acquisition related expenses | ||||||||||
Salaries and employee benefits | 112 | 98 | 547 | |||||||
Professional services | 87 | 90 | 713 | |||||||
Data processing(2) | — | (96 | ) | 2,428 | ||||||
Technology and information systems | 1 | 1 | — | |||||||
Marketing | — | 7 | — | |||||||
Other | (5 | ) | 54 | 8 | ||||||
Less: income tax impact | 49 | 38 | 837 | |||||||
Adjusted net income available to shareholders(1) | $ | 5,617 | $ | 6,337 | $ | 4,776 | ||||
Adjusted Diluted Earnings Per Share(1) | ||||||||||
Diluted earnings per share | $ | 0.56 | $ | 0.64 | $ | 0.23 | ||||
Plus: acquisition related expenses net of income tax impact | 0.02 | 0.02 | 0.34 | |||||||
Adjusted diluted earnings per share(1) | $ | 0.58 | $ | 0.66 | $ | 0.57 |
_____________________
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
(2) Represents reduced contract termination fees from the system conversion.
The Company’s efficiency ratio(1) was 67.7% in the fourth quarter of 2022, compared with 64.9% in the third quarter of 2022 and 71.8% in the fourth quarter of 2021.
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Income Taxes
The Company recorded income tax expense of
Loans
Total loans held for investment were
Deposits
Total deposits were
Borrowings
Subordinated notes were
Assets Under Management
AUM increased by
Credit Quality
Non-performing assets totaled
The Company recorded a provision of
The Company adopted the new current expected credit losses ("CECL") standard effective
Capital
As of
2022 | ||
Tier 1 capital to risk-weighted assets | 9.28 | % |
Common Equity Tier 1 ("CET1") to risk-weighted assets | 9.28 | |
Total capital to risk-weighted assets | 12.37 | |
Tier 1 capital to average assets | 7.81 | |
Tier 1 capital to risk-weighted assets | 10.29 | |
CET1 to risk-weighted assets | 10.29 | |
Total capital to risk-weighted assets | 11.06 | |
Tier 1 capital to average assets | 8.65 | |
Book value per common share increased 2.5% from
Tangible book value per common share (1) increased 3.0% from
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Conference Call, Webcast and Slide Presentation
The Company will host a conference call and webcast at
A slide presentation relating to the fourth quarter 2022 results will be accessible prior to the scheduled conference call. The slide presentation and webcast of the conference call can be accessed on the Events and Presentations page of the Company’s investor relations website at https://myfw.gcs-web.com.
About First Western
First Western is a financial services holding company headquartered in
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in
Forward-Looking Statements
Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “position,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “opportunity,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Those risks and uncertainties include, without limitation, the COVID-19 pandemic and its effects; integration risks and projected cost savings in connection with acquisitions; the risk of geographic concentration in
Contacts:
310-622-8221
MYFW@finprofiles.com
IR@myfw.com
First
Consolidated Financial Summary (unaudited)
Three Months Ended | ||||||||||
(Dollars in thousands, except per share amounts) | 2022 | 2022 | 2021 | |||||||
Interest and dividend income: | ||||||||||
Loans, including fees | $ | 30,203 | $ | 24,831 | $ | 15,398 | ||||
Loans accounted for under the fair value option | 488 | 513 | — | |||||||
Investment securities | 645 | 653 | 225 | |||||||
Interest-bearing deposits in other financial institutions | 931 | 533 | 109 | |||||||
Dividends, restricted stock | 238 | 109 | 20 | |||||||
Total interest and dividend income | 32,505 | 26,639 | 15,752 | |||||||
Interest expense: | ||||||||||
Deposits | 8,260 | 2,706 | 813 | |||||||
Other borrowed funds | 2,403 | 1,027 | 532 | |||||||
Total interest expense | 10,663 | 3,733 | 1,345 | |||||||
Net interest income | 21,842 | 22,906 | 14,407 | |||||||
Less: provision for loan losses | 1,197 | 1,756 | 812 | |||||||
Net interest income, after provision for loan losses | 20,645 | 21,150 | 13,595 | |||||||
Non-interest income: | ||||||||||
Trust and investment management fees | 4,358 | 4,639 | 5,184 | |||||||
Net gain on mortgage loans | 775 | 885 | 2,470 | |||||||
Bank fees | 812 | 586 | 615 | |||||||
Risk management and insurance fees | 924 | 115 | 676 | |||||||
Income on company-owned life insurance | 88 | 88 | 88 | |||||||
Net (loss)/gain on loans accounted for under the fair value option | (602 | ) | (134 | ) | — | |||||
Unrealized gain/(loss) recognized on equity securities | — | 75 | — | |||||||
Net gain/(loss) on equity interests | — | 6 | 483 | |||||||
Other | 206 | 85 | — | |||||||
Total non-interest income | 6,561 | 6,345 | 9,516 | |||||||
Total income before non-interest expense | 27,206 | 27,495 | 23,111 | |||||||
Non-interest expense: | ||||||||||
Salaries and employee benefits | 11,679 | 11,566 | 11,013 | |||||||
Occupancy and equipment | 1,910 | 1,836 | 1,588 | |||||||
Professional services | 2,027 | 2,316 | 2,164 | |||||||
Technology and information systems | 1,168 | 1,172 | 916 | |||||||
Data processing | 1,223 | 888 | 3,307 | |||||||
Marketing | 500 | 403 | 497 | |||||||
Amortization of other intangible assets | 77 | 77 | 4 | |||||||
Net (gain)/loss on assets held for sale | — | (1 | ) | — | ||||||
Net (gain)/loss on sale of other real estate owned | (3 | ) | (41 | ) | — | |||||
Other | 1,324 | 1,044 | 1,035 | |||||||
Total non-interest expense | 19,905 | 19,260 | 20,524 | |||||||
Income before income taxes | 7,301 | 8,235 | 2,587 | |||||||
Income tax expense | 1,830 | 2,014 | 670 | |||||||
Net income available to common shareholders | $ | 5,471 | $ | 6,221 | $ | 1,917 | ||||
Earnings per common share: | ||||||||||
Basic | $ | 0.58 | $ | 0.66 | $ | 0.24 | ||||
Diluted | 0.56 | 0.64 | 0.23 | |||||||
Consolidated Financial Summary (unaudited)
(Dollars in thousands) | 2022 | 2022 | 2021 | ||||||||
Assets | |||||||||||
Cash and cash equivalents: | |||||||||||
Cash and due from banks | $ | 4,926 | $ | 8,308 | $ | 6,487 | |||||
Federal funds sold | — | — | 1,491 | ||||||||
Interest-bearing deposits in other financial institutions | 191,586 | 156,940 | 379,005 | ||||||||
Total cash and cash equivalents | 196,512 | 165,248 | 386,983 | ||||||||
Available-for-sale securities, at fair value | — | — | 56,211 | ||||||||
Held-to-maturity securities, at amortized cost (fair value of |
81,056 | 84,257 | — | ||||||||
Correspondent bank stock, at cost | 7,110 | 12,783 | 2,584 | ||||||||
Mortgage loans held for sale, at fair value | 8,839 | 12,743 | 30,620 | ||||||||
Loans held for sale, at fair value | 1,965 | — | — | ||||||||
Loans (includes |
2,469,413 | 2,351,322 | 1,949,137 | ||||||||
Allowance for loan losses | (17,183 | ) | (16,081 | ) | (13,732 | ) | |||||
Loans, net | 2,452,230 | 2,335,241 | 1,935,405 | ||||||||
Premises and equipment, net | 25,118 | 24,668 | 23,976 | ||||||||
Accrued interest receivable | 10,445 | 8,451 | 7,151 | ||||||||
Accounts receivable | 4,873 | 5,947 | 5,267 | ||||||||
Other receivables | 1,973 | 2,868 | 1,949 | ||||||||
Other real estate owned, net | — | 187 | — | ||||||||
32,104 | 32,181 | 31,902 | |||||||||
Deferred tax assets, net | 6,914 | 6,849 | 6,845 | ||||||||
Company-owned life insurance | 16,152 | 16,064 | 15,803 | ||||||||
Other assets | 21,457 | 21,212 | 22,678 | ||||||||
Assets held for sale | — | — | 115 | ||||||||
Total assets | $ | 2,866,748 | $ | 2,728,699 | $ | 2,527,489 | |||||
Liabilities | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing | $ | 583,092 | $ | 662,055 | $ | 636,304 | |||||
Interest-bearing | 1,822,137 | 1,505,392 | 1,569,399 | ||||||||
Total deposits | 2,405,229 | 2,167,447 | 2,205,703 | ||||||||
Borrowings: | |||||||||||
146,886 | 273,225 | 38,629 | |||||||||
Subordinated notes | 52,132 | 32,584 | 39,031 | ||||||||
Accrued interest payable | 1,125 | 664 | 355 | ||||||||
Other liabilities | 20,512 | 19,917 | 24,730 | ||||||||
Total liabilities | 2,625,884 | 2,493,837 | 2,308,448 | ||||||||
Shareholders’ Equity | |||||||||||
Total shareholders’ equity | 240,864 | 234,862 | 219,041 | ||||||||
Total liabilities and shareholders’ equity | $ | 2,866,748 | $ | 2,728,699 | $ | 2,527,489 | |||||
Consolidated Financial Summary (unaudited)
(Dollars in thousands) | 2022 | 2022 | 2021 | ||||||||
Loan Portfolio | |||||||||||
Cash, Securities, and Other(1) | $ | 165,670 | $ | 154,748 | $ | 261,190 | |||||
Consumer and Other(2) | 49,954 | 50,429 | 34,758 | ||||||||
Construction and Development | 288,497 | 228,060 | 178,716 | ||||||||
1-4 Family Residential | 898,154 | 822,796 | 580,872 | ||||||||
Non-Owner Occupied CRE | 496,776 | 527,836 | 482,622 | ||||||||
Owner Occupied CRE | 216,056 | 220,075 | 212,426 | ||||||||
Commercial and Industrial | 361,028 | 350,954 | 203,584 | ||||||||
Total loans held for investment | 2,476,135 | 2,354,898 | 1,954,168 | ||||||||
Deferred (fees) costs and unamortized premiums/(unaccreted discounts), net(3) | (6,722 | ) | (3,576 | ) | (5,031 | ) | |||||
Gross loans | $ | 2,469,413 | $ | 2,351,322 | $ | 1,949,137 | |||||
Mortgage loans held for sale | $ | 8,839 | $ | 12,743 | $ | 30,620 | |||||
Loans held for sale | 1,965 | — | — | ||||||||
Deposit Portfolio | |||||||||||
Money market deposit accounts | $ | 1,336,092 | $ | 1,010,846 | $ | 1,056,669 | |||||
Time deposits | 224,090 | 186,680 | 170,491 | ||||||||
Negotiable order of withdrawal accounts | 234,778 | 277,225 | 309,940 | ||||||||
Savings accounts | 27,177 | 30,641 | 32,299 | ||||||||
Total interest-bearing deposits | 1,822,137 | 1,505,392 | 1,569,399 | ||||||||
Noninterest-bearing accounts | 583,092 | 662,055 | 636,304 | ||||||||
Total deposits | $ | 2,405,229 | $ | 2,167,447 | $ | 2,205,703 |
___________________
(1) Includes PPP loans of
(2) Includes loans held for investment accounted for under fair value option of
(3) Includes fair value adjustments on loans held for investment accounted for under the fair value option.
Consolidated Financial Summary (unaudited) (continued)
As of or for the Three Months Ended | |||||||||||
(Dollars in thousands) | 2022 | 2022 | 2021 | ||||||||
Average Balance Sheets | |||||||||||
Assets | |||||||||||
Interest-earning assets: | |||||||||||
Interest-bearing deposits in other financial institutions | $ | 103,190 | $ | 101,564 | $ | 277,915 | |||||
Federal funds sold | — | 260 | 1,491 | ||||||||
Investment securities | 84,017 | 87,340 | 36,001 | ||||||||
Correspondent bank stock | 11,880 | 4,924 | 1,744 | ||||||||
Loans | 2,436,273 | 2,241,343 | 1,653,919 | ||||||||
Interest-earning assets | 2,635,360 | 2,435,431 | 1,971,070 | ||||||||
Mortgage loans held for sale | 9,065 | 11,535 | 39,112 | ||||||||
Total interest-earning assets, plus mortgage loans held for sale | 2,644,425 | 2,446,966 | 2,010,182 | ||||||||
Allowance for loan losses | (16,724 | ) | (14,981 | ) | (13,224 | ) | |||||
Noninterest-earning assets | 125,355 | 126,457 | 94,589 | ||||||||
Total assets | $ | 2,753,056 | $ | 2,558,442 | $ | 2,091,547 | |||||
Liabilities and Shareholders’ Equity | |||||||||||
Interest-bearing liabilities: | |||||||||||
Interest-bearing deposits | $ | 1,582,587 | $ | 1,480,288 | $ | 1,195,986 | |||||
FHLB and |
212,693 | 119,025 | 49,115 | ||||||||
Subordinated notes | 38,335 | 32,564 | 39,017 | ||||||||
Total interest-bearing liabilities | 1,833,615 | 1,631,877 | 1,284,118 | ||||||||
Noninterest-bearing liabilities: | |||||||||||
Noninterest-bearing deposits | 659,076 | 673,949 | 608,693 | ||||||||
Other liabilities | 21,660 | 20,103 | 19,566 | ||||||||
Total noninterest-bearing liabilities | 680,736 | 694,052 | 628,259 | ||||||||
Total shareholders’ equity | 238,705 | 232,513 | 179,170 | ||||||||
Total liabilities and shareholders’ equity | $ | 2,753,056 | $ | 2,558,442 | $ | 2,091,547 | |||||
Yields/Cost of funds (annualized) | |||||||||||
Interest-bearing deposits in other financial institutions | 3.61 | % | 2.08 | % | 0.16 | % | |||||
Investment securities | 3.07 | 2.99 | 2.50 | ||||||||
Correspondent bank stock | 8.01 | 8.85 | 4.59 | ||||||||
Loans | 5.04 | 4.52 | 3.72 | ||||||||
Interest-earning assets | 4.93 | 4.38 | 3.20 | ||||||||
Mortgage loans held for sale | 6.44 | 5.44 | 3.14 | ||||||||
Total interest-earning assets, plus mortgage loans held for sale | 4.94 | 4.38 | 3.20 | ||||||||
Interest-bearing deposits | 2.09 | 0.73 | 0.27 | ||||||||
FHLB and |
3.61 | 2.23 | 0.45 | ||||||||
Subordinated notes | 5.07 | 4.45 | 4.89 | ||||||||
Total interest-bearing liabilities | 2.33 | 0.92 | 0.42 | ||||||||
Net interest margin | 3.32 | 3.76 | 2.92 | ||||||||
Net interest rate spread | 2.61 | 3.46 | 2.77 | ||||||||
Consolidated Financial Summary (unaudited) (continued)
As of or for the Three Months Ended | |||||||||||
(Dollars in thousands, except share and per share amounts) | 2022 | 2022 | 2021 | ||||||||
Asset Quality | |||||||||||
Non-performing loans | $ | 12,349 | $ | 3,744 | $ | 4,327 | |||||
Non-performing assets | 12,349 | 3,931 | 4,327 | ||||||||
Net charge-offs | 95 | 32 | 44 | ||||||||
Non-performing loans to total loans | 0.50 | % | 0.16 | % | 0.22 | % | |||||
Non-performing assets to total assets | 0.43 | 0.14 | 0.17 | ||||||||
Allowance for loan losses to non-performing loans | 139.14 | 429.51 | 317.36 | ||||||||
Allowance for loan losses to total loans | 0.70 | 0.68 | 0.70 | ||||||||
Allowance for loan losses to bank originated loans excluding PPP(1) | 0.78 | 0.77 | 0.88 | ||||||||
Net charge-offs to average loans(2) | 0.00 | 0.00 | 0.00 | ||||||||
Assets Under Management | $ | 6,106,973 | $ | 5,918,403 | $ | 7,351,840 | |||||
Market Data | |||||||||||
Book value per share at period end | 25.37 | 24.74 | 23.25 | ||||||||
Tangible book value per common share(1) | 21.99 | 21.35 | 19.87 | ||||||||
Weighted average outstanding shares, basic | 9,493,732 | 9,481,311 | 8,043,469 | ||||||||
Weighted average outstanding shares, diluted | 9,702,908 | 9,673,078 | 8,370,998 | ||||||||
Shares outstanding at period end | 9,495,440 | 9,492,006 | 9,419,271 | ||||||||
Tier 1 capital to risk-weighted assets | 9.28 | % | 9.54 | % | 10.54 | % | |||||
CET1 to risk-weighted assets | 9.28 | 9.54 | 10.54 | ||||||||
Total capital to risk-weighted assets | 12.37 | 11.84 | 13.54 | ||||||||
Tier 1 capital to average assets | 7.81 | 8.18 | 9.31 | ||||||||
Tier 1 capital to risk-weighted assets | 10.29 | 10.32 | 11.40 | ||||||||
CET1 to risk-weighted assets | 10.29 | 10.32 | 11.40 | ||||||||
Total capital to risk-weighted assets | 11.06 | 11.09 | 12.19 | ||||||||
Tier 1 capital to average assets | 8.65 | 8.84 | 10.05 |
____________________
(1) Represents a Non-GAAP financial measure. See “Reconciliation of Non-GAAP Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
(2) Value results in an immaterial amount.
Consolidated Financial Summary (unaudited) (continued)
Reconciliations of Non-GAAP Financial Measures
As of or for the Three Months Ended | |||||||||||
(Dollars in thousands, except share and per share amounts) | 2022 | 2022 | 2021 | ||||||||
Tangible Common | |||||||||||
Total shareholders' equity | $ | 240,864 | $ | 234,862 | $ | 219,041 | |||||
Less: goodwill and other intangibles, net | 32,104 | 32,181 | 31,902 | ||||||||
Tangible common equity | $ | 208,760 | $ | 202,681 | $ | 187,139 | |||||
Common shares outstanding, end of period | 9,495,440 | 9,492,006 | 9,419,271 | ||||||||
Tangible common book value per share | $ | 21.99 | $ | 21.35 | $ | 19.87 | |||||
Net income available to common shareholders | 5,471 | 6,221 | 1,917 | ||||||||
Return on tangible common equity (annualized) | 10.48 | % | 12.28 | % | 4.10 | % | |||||
Efficiency | |||||||||||
Non-interest expense | $ | 19,905 | $ | 19,260 | $ | 20,524 | |||||
Less: amortization | 77 | 77 | 4 | ||||||||
Less: acquisition related expenses | 195 | 154 | 3,696 | ||||||||
Adjusted non-interest expense | $ | 19,633 | $ | 19,029 | $ | 16,824 | |||||
Total income before non-interest expense | $ | 27,206 | $ | 27,495 | $ | 23,111 | |||||
Less: unrealized gain/(loss) recognized on equity securities | — | 75 | — | ||||||||
Less: net (loss)/gain on loans accounted for under the fair value option | (602 | ) | (134 | ) | — | ||||||
Less: net gain/(loss) on equity interests | — | 6 | 483 | ||||||||
Less: net (loss)/gain on loans held for sale at fair value(1) | (12 | ) | — | — | |||||||
Plus: provision for loan losses | 1,197 | 1,756 | 812 | ||||||||
Gross revenue | $ | 29,017 | $ | 29,304 | $ | 23,440 | |||||
Efficiency ratio | 67.66 | % | 64.94 | % | 71.77 | % | |||||
Allowance to Bank Originated Loans Excluding PPP | |||||||||||
Total loans held for investment | $ | 2,476,135 | $ | 2,354,898 | $ | 1,954,168 | |||||
Less: loans acquired | 234,717 | 248,573 | 360,661 | ||||||||
Less: bank originated PPP loans | 6,378 | 6,905 | 40,062 | ||||||||
Less: loans accounted for under fair value | 23,415 | 22,648 | — | ||||||||
Bank originated loans excluding PPP | $ | 2,211,625 | $ | 2,076,772 | $ | 1,553,445 | |||||
Allowance for loan losses | $ | 17,183 | $ | 16,081 | $ | 13,732 | |||||
Allowance for loan losses to bank originated loans excluding PPP | 0.78 | % | 0.77 | % | 0.88 | % |
____________________
(1) Presented in Other Non-interest income on the Consolidated Financial Summary statements
Consolidated Financial Summary (unaudited) (continued)
As of or for the Three Months Ended | |||||||||||
(Dollars in thousands, except share and per share data) | 2022 | 2022 | 2021 | ||||||||
Adjusted Net Income Available to Common Shareholders | |||||||||||
Net income available to common shareholders | $ | 5,471 | $ | 6,221 | $ | 1,917 | |||||
Plus: acquisition related expenses | 195 | 154 | 3,696 | ||||||||
Less: income tax impact | 49 | 38 | 837 | ||||||||
Adjusted net income available to shareholders | $ | 5,617 | $ | 6,337 | $ | 4,776 | |||||
Pre-Tax, Pre-Provision Net Income | |||||||||||
Income before income taxes | $ | 7,301 | $ | 8,235 | $ | 2,587 | |||||
Plus: provision for loan losses | 1,197 | 1,756 | 812 | ||||||||
Pre-tax, pre-provision net income | $ | 8,498 | $ | 9,991 | $ | 3,399 | |||||
Adjusted Basic Earnings Per Share | |||||||||||
Basic earnings per share | $ | 0.58 | $ | 0.66 | $ | 0.24 | |||||
Plus: acquisition related expenses net of income tax impact | 0.01 | 0.01 | 0.35 | ||||||||
Adjusted basic earnings per share | $ | 0.59 | $ | 0.67 | $ | 0.59 | |||||
Adjusted Diluted Earnings Per Share | |||||||||||
Diluted earnings per share | $ | 0.56 | $ | 0.64 | $ | 0.23 | |||||
Plus: acquisition related expenses net of income tax impact | 0.02 | 0.02 | 0.34 | ||||||||
Adjusted diluted earnings per share | $ | 0.58 | $ | 0.66 | $ | 0.57 | |||||
Adjusted Return on Average Assets (annualized) | |||||||||||
Return on average assets | 0.79 | % | 0.97 | % | 0.37 | % | |||||
Plus: acquisition related expenses net of income tax impact | 0.03 | 0.02 | 0.54 | ||||||||
Adjusted return on average assets | 0.82 | % | 0.99 | % | 0.91 | % | |||||
Adjusted Return on Average Shareholders' Equity (annualized) | |||||||||||
Return on average shareholders' equity | 9.17 | % | 10.70 | % | 4.28 | % | |||||
Plus: acquisition related expenses net of income tax impact | 0.24 | 0.20 | 6.38 | ||||||||
Adjusted return on average shareholders' equity | 9.41 | % | 10.90 | % | 10.66 | % | |||||
Adjusted Return on Tangible Common Equity (annualized) | |||||||||||
Return on tangible common equity | 10.48 | % | 12.28 | % | 4.10 | % | |||||
Plus: acquisition related expenses net of income tax impact | 0.28 | 0.23 | 6.11 | ||||||||
Adjusted return on tangible common equity | 10.76 | % | 12.51 | % | 10.21 | % |

Source: First Western Financial, Inc.