First Western revenues dip but deposits increase in Q2

BOULDER and FORT COLLINS — First Western Financial Inc., (Nasdaq: MYFW) with headquarters in Denver but branch banks in Boulder and Fort Collins, reported second-quarter results this week, including a decline in revenue from the first quarter of 2018 but an increase over the second quarter of 2017.

Gross revenue was $14.5 million for the second quarter 2018, compared with $14.7 million for the first quarter of 2018 and $13.1 million for the second quarter of 2017.

The bank said the slight decline in revenue was driven by a $400,000 decrease in non-interest income, partially offset by a $200,000 increase in net interest income.

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The bank’s second quarter ended June 30.

“Our second quarter results are consistent with our expectations and reflect significant year-over-year improvement in our profitability, driven by strong revenue growth, a higher level of efficiencies and continued outstanding credit quality,” Scott C. Wylie, CEO of First Western, said in a prepared statement.  “We are very pleased with the recent completion of our initial public offering. The capital raised in the IPO should enable us to further our momentum and pursue the growth opportunities available to us. We also made several changes during the first half of 2018 to streamline our operations and further enhance our efficiencies.  We believe we have reached an inflection point where we can generate higher balance sheet growth and realize greater operating leverage, which should result in continued steady improvement in our profitability in the second half of 2018 and beyond.”

Gross loans, excluding mortgage loans held for sale, were $842.6 million at June 30, compared with $817.3 million at March 31, 2018 and $741.3 million at June 30, 2017. The increase in total loans from March 31, 2018, was primarily attributable to growth in securities lending, 1-4 family residential, construction loans and owner occupied commercial real estate.

Total deposits were $843.7 million at June 30, compared with $818.2 million at March 31, and $772.9 million at June 30, 2017. The increase in total deposits from March 31, 2018, was due to an increase in money market deposits, primarily attributed to an increase in trust account related deposits.

Total assets under management were $5.42 billion at June 30, compared to $5.36 billion at March 31, and $5.11 billion at June 30, 2017.