We are pleased to report our fourth consecutive quarter of profitability from strong core earnings. First Western Financial, Inc. (Company) and First Western Trust Bank (Bank) reported pre-tax net income for the quarter ended June 30, 2014 of $0.6M and $0.7M, respectively. Revenue has grown at the Company and Bank compared to the same three months of 2013 by 21% and 11%, respectively.
Net Interest Income (pre-provision) was up 7% over 2Q13 but was flat compared to 1Q14; pre-provision net interest income was impacted by two main factors:
- Average loans outstanding were slightly lower than prior quarter due to loan pricing competition and low market rates, and
- Average deposits were down in the quarter, ending at $522M; however, the cost of deposits continues to decline with portfolio rates 20bps lower than Q213.
Asset quality indicators are strong and the Bank continues to experience improving asset quality with total non-performing loans continuing to drop for the seventh consecutive quarter and representing just 2% of total loans.
Assets under management (AUM) have grown to $4.8 billion YTD, a 6% increase from December 31, 2013. Recurring advisory fee revenue is a significant portion of total revenues at 53%, which is well above peers and indicates the diversity and strength of revenues at the Company.
First Western Trust remains “well capitalized” by all regulatory measures with total equity capital of $70.8M at June 30, 2014.
August 13, 2014