MYFW - Earnings call 4 2020 | First Western Financial, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the First Western Financial Q4 2020 Earnings Conference Call. [Operator Instructions] Please be advised, today's call is being recorded. [Operator Instructions] I would now like to hand our conference over to your speaker today, Mr. Tony Rossi of Financial Profiles.

Tony Rossi

Thank you, Ryan. thank Fourth joining Quarter and First today everyone, Financial's Western XXXX morning, you us for for Good Earnings Call.

First Executive Courkamp, from Chairman us Western's are team Joining Scott and Chief Financial Officer; Chief Julie and Officer. management Wylie,

as We of this our part will slide discussion a use presentation morning.

Events presentation. Relations If download website not the a already, of page copy please so have Presentations First the to you visit of done and Western's Investor

statements. statements involve this we respect begin, of factors to future discussed in These different pandemic. like future call cause and to which to impact results the from with company's Before uncertainties, forward-looking performance could remind SEC results you the the conference be available First website. contains that implied the Western any or risks company's I'd filings, on financial the materially forward-looking including factors Various expressed are COVID-XX of condition are actual such Financial by and that

the earnings during the direct any any made you statements I The investor forward-looking obligation to in disclaims release disclaimers to call. would company presentation. and update also read our

Additionally, the not GAAP for on information most non-GAAP management are comparable measures, non-GAAP the to today the release directly press measures. to financial contains measures. as substitute and GAAP discussed The other the of the be supplement, to website may available refer as reconciliation intended to but which quantitative well

over to And with Scott? call like Scott. the I'd that, turn to

Scott Wylie

Good Tony. Thanks, Okay. everyone. morning,

First to We through created manage by COVID-XX fourth environment capped Our year extremely were the quarter performance positioned well extraordinary pandemic. Western. an unprecedented for the

program value capital stress the on from book profits internal in portfolio and commercial loan underwritten capitalized experienced in this our significant business caused contributed to enabled mortgage generate the PPP generation year. the to refi by in boom add that We pandemic. and tangible reduction interest new us conservatively little our very tremendous customers the to diversified, well rates growth Our has

a and that the quarter historical that is from strong activity revenue The huge to in from third earnings one positive focusing increase comparisons. still business, trends future. one clear. returns for the very in XXXX build second had earnings When in aside exceptionally during a we're to to on drawback the and a quarterly mortgage fourth continue quarter makes path in areas perspective, sustainable But is see progress sequential and year-to-year the our which looking in very made we difficult volatility we higher the comparison, over

prior And fourth earnings leverage and During growth the the year. increased in both operating continue scale, with share. per to we're XX.X% over realizing the as resulted quarter, income XX.X% we net revenue our revenue in increase this

per our financial contributor tangible performance, high-quality deposits. combined primary having low-cost success increasing new value of produce initiative in we're growing completion LA to this to in the the share sale strong with book The balance loans resulted a our banking team, relationships, commercial income continues Our sheet performance and as year-over-year. XX% improved fixed of the our is

third our the loan loan year, we're commercial more the team, this last our which banking and fully both we and quarter year. With total the of of reflects the growth talent investment from This earlier the and sheet while expanded from also quarter, loans clients deposits fourth branch XX.X% increasing growth net income balance addition quarter the our from runoff prior banking in increased pricing. acquisition contribution PPP loans, commercial X.X%. our for through X% improving organic of increased interest Excluding of X.X% held and production added in seeing our resulted

is capacity and highest allowing prior seeing We're us the of increased the quarter compete value our the commercial was new also to the on fourth pandemic. against proposition larger yield average banks. in Our to lending production onset we've seen well effectively loan differentiated

In fact, in loan would we've to in able years. a we have line million deal our of supported to client sold credit been was was $XX longtime years past a loan this when business, great that able a have not his business quarter, he to win been of quarter, -- originated largest fourth built many who likely the provided the for for a and money. not he deal This

now Many manager we made million the than to grow be that of him, for the secured account planning client Following investment much be more expand were wealth plan in need $XX banks more offers placed needs a trust First Western. a that services such additional that state into have investment large this with additional relationship will to the large this for able And future the by need one and to brokers win and us will and business provide the as opportunities investment management the credit for will and management sale, account. profitable to relationship. of the had line a the

in a above and platform we'll we're continue an fully in partners wealth As in to services, win type as were the to of weight the have and leverage clearly class our robust management banking we've built, with well and business able we believe bring to bonus, impressed deal clients and punch opportunities private future. well. our it's that as them now winning In the we his added this deal,

point, mortgage of be for loans sale. to in a large our month in of needed the that At Looking backlog production quarter, we had processed that at we strong October. built activity another

increase ran in I'll through for asset see that work later quality locks processing Given rapid we up third the we new in more the trends. seasonality usual net lower quarters. second business was on so and talk But call. From the see of our we we the a volume our in that to the this continue an XX.X%, positive loans resulted mortgage demand and a down expectations slowed perspective, -- with of order the quarter, basis, to relative November gain level we in Combined backlog. very to some the year-over-year saw gain in QX this third on constraints, about sale and in reduces December, production in second into and still this

Our the assets end nonperforming to less quarter, our X% total by prior declined while from nonperforming than the loans. of loans of -- modifications XX.X% loan declined

continue or in To impacted material implement cases seen the enhanced for the new reviews in We particularly we how this have given a to monitoring the and loan borrowers surge we requests of portfolio being have understanding pandemic, in results haven't our borrowers impact surge to late year. date, deferrals. on good are any ensure our by

X. Slide Moving now to

jump our team state fourth LA a placed This our in we our income sheet profitability of last to higher operating rate allowance of in to as which in impacted against effective level negatively and demonstrate leverage increasing continues in future. high The the We the valuation produce realizing year. balance relative sale a scale will operating of quarter, The a that continue significant California. we the built returns model be level share. to profitability see and resulted of being in $X.XX net the losses Fixed to earnings caused growth our a the we're tax by

our loan Turning We'll the trends portfolio. X. to Slide at in look

increased the $XXX payoffs highest we from if X is bankers total due loan the construction had the $XXX.X last Most are of portfolio from part $XX.X Our quarter year. in commercial in partially or quarter. the production street Simmons deals level more increased our brought is in up was in paydowns, But of as in prior expertise, X.X% for total that This total getting We loans opportunities to million or the million loans which did excluded, growth million, main held the $XXX.X offset end seeing PPP loans growth added of included of X%. investment by so which million transaction more XX.X% our and the of quarter. all initiative, we're the area. we And we program. saw we're traction some lending the lending fourth bank the

in on to construction although year-over-year will represents shows driver contribution pretty in keep -- focus overall primary loans, plan but consistent growth, to the longer the the still residential commercial shift for private the construction the have declined loans loans portfolio in the of we're term. The bank another the a its away we progress over of commercial with of as mix the loan Our acquisition, loans trend residential result loan XX.X% investment. banking loans related initiative. held our Compared to from loans mortgage towards ago, total business our from to making branch portfolio total year a be XX.X%

We'll X. a at trends. Slide take deposit Moving look closer to

that to balances Our total deposits quarter. There prior the of from a with some end company deposits our X.X% title or end fluctuations in of $XX.X large in the deposits period was us. the keeps due volatility million increased

be growth our growth for deposit growth our of of Excluding which million. DDA commercial one primary accounted relationships, deposit deposit XXXX. around the client, to driver all of our The balances that was $XX continues during XX.X%

With in deposits we've the a our total earlier. year success significant with adding XX.X% we've commercial transaction from noninterest-bearing had improvement increasing deposits seen XX.X% mix deposit in of accounts,

our standpoint organic accelerated We the and strong serve that commercial to of products to and we're in commercial intent in of our acquisition the a deposit quarter we more second banking Slide and revenues franchise. is announced assets, initiative. Throughout during of with And a our strengthen banking better insight level want and from deposit growth years portfolio growth to an loan We bankers complement This branch this progress to private diversified our business. we lower it's Moving the creating this add more clients believe base helping X. additional made value effort relationships natural enhances loan as our some to provide and cost relationship new a XXXX, the effort contributed capabilities ago, generating. into services. couple entrepreneurial-oriented good A existing earnings.

X. to management and Slide on investment Turning trust

the increased quarter Fixed Our exclude made total sale new additional that contributions you market the management $XXX.X of LA accounts combination million, conditions, improved were the or team. and to The as was assets a this of due client increase accounts. of client under assets part if income by $XXX.X through existing million primarily included

discussion the Julie further for turn results. Now I'll to financial call Julie? our of over

Julie Courkamp

Scott. you, Thank

Turning Slide of and end the the We've Through the Despite an impact in PPP forgiveness quarter. loan update X. the remaining margin the provided in million year, interest balance approval PPP quarter. basis on loans loans impacts still had upon program of points participation had $XXX.X our a to left million fourth for $XX.X our it receive we metrics forgiveness, fourth the from sheet. on loans various acceleration on of PPP in This of our the XX the SBA. net in fees how negative

XX, X PPP round as in $XX.X participating the we are million had received new program, loans. in We and of PPP applications for January

We Turning to revenue. Slide XX. look our gross at

net mix. interest the both is very and growth stable. While to of this in our expenses level historical income very are quarter, year we a have our we up of XX.X% that sheet in strong noninterest growth we above which increases And had seen income, income pleased balance are we able interest revenue total growth of revenue with net to revenue quarter our coming this generate pushed this keeping while relatively significant our

XX. and Slide interest margins. to trends look income net We'll Turning at the in

from income loan net net quarter Our a approximately basis, from increase from was X.XX%. at unchanged due was average interest organic prior resulting growth. the X.X% quarter. our the prior The in our interest by an to loan increased margin balances, growth On $XXX,XXX reported or

the by were due XX the decreased yields. when interest a accounting loan in quarter. purchase basis and This prior adjustments net is loans impact primarily decline to PPP average excluded, However, margin from of points our

interest excess seeing Given the anticipate we our during first of impact combined quarter. margin some and pressure debt recent our quarter loan declining liquidity, on full issuance net with our yields, continued sub

Turning to Slide XX.

strong Relative resulting on the Our fourth XX% over income the we from up areas, all from due year, down sequential have management of once of despite year, our quarter than organic we XXXX. are investment the increases additional our quarter quarter net $XXX income to due to fees acquisition, and more quarter and to but on on business team the lower very from the in during the LA trust fixed our increased a XX, operations. sale which again last in prior year. of primarily generating base client the detail growth quarter almost at were Originations Notably, of mortgage development gain closed past second basis, some seeing the provided loans, branch the key mortgage in noninterest million. quarter. On was last our a the the in Slide

quarter. is XX% revenue the the However, of prior total at declined our locks recognized mortgage time and the by from locks nearly

increase rapid earlier, into following we mentioned processing Scott the in ran originated. selling mortgage loans production the had the the been the in in that caused As year, constraints earlier delay

market, $X.X the basis sale the in to due considerably prior margin on in generated income quarter a of revenue a the revenue quarter. revenue, the the of in the net of $X.X we between revenue net million business sale relatively though, loans We million relative million for with loans. profit On of and addition, $XXX,XXX income on MBS all saw income in large the compared same net to XXXX refi of quarter decline volume fourth margins gain in higher. In of purchase and on to year-over-year in same mix are XXXX $X.X

Slide Turning XX and expenses. to now

in had lower quarter. the compensation, prior decreased revenues consistent expense from incentive The noninterest Our due X.X% the primarily lower mortgage we quarter. to that with the was decrease

closure from the acquisition. the additional quarter, primarily the and Our to $XXX,XXX prior was acquired locations equipment down in due occupancy of also expense branch

higher balance In sheet efficiency continue the XX.X%, the fourth to see in and year. down fee our the our efficiency to our quarter, income, ratio the prior XX.X% we prior growth in Given ratio from relative improvement year. was

With fourth we the expenses during quarter, sale of team going fixed some XXXX. eliminate into complete the income the will

range quarterly expect a the be to XXXX. rate to of our expense noninterest million we run start for As $XX $XX.X result, to million in

quality. Turning quarter. across now the positive we'll our the XX, trends at portfolio We look to asset Slide in fourth saw

minimal basis low another immaterial to this level XX quarter. exit $X.X and inflow, total assets continue Combined the large by had the year this with points charge-offs losses in due to NPAs from to we bank nonperforming in a basis portfolio working points see net of of declining been had -- of end again, TDR assets outflow XX our and last to Our that net in quarter. last we resulted by institution. refinanced very total assets decreased primarily million, was to the Once

For the net year, full our essentially charge-offs X. were

recorded allowance excluded. to in quarter, and loans we total We growth XX. This Slide PPP $XXX,XXX reflects acquired approximately which of basis are expense when of provision portfolio. an to XX points, loans the the in Turning primarily in the fourth had adjusted resulted loans

Turning Slide XX. to now

our modifications. an We on provided have update loan

has out is and in has deferral COVID not any surge in have late and redeferral its the mentioned, granted modification, second Scott which As already date, year resulted come second to request cases we in the back of only for period one performing.

deferral. I XXXX, we any Scott As active loan now back of longer over will call January on turn -- the XX, have modifications back no the to Scott.

Scott Wylie

Julie. All right. Thanks,

Slide outlook XXXX. to XX, our want I to comments Turning some for priorities about and provide

point, As Due strong performance XXXX, our our capital a starting amount generation. a to of wanted had tremendous we in to address internal I capital position.

than by increased year. equity common tangible more Our million $XX last

with of company impact size significant a our no existing shareholders. dilutive to raise, that equates but essentially For to capital

and growth further is external organic As commercial our our platform. to very driver will commercial organic Since we're raise supporting increasing needing a From of banks, attract be have into push has full well-differentiated commercial creating that larger more priorities year talent of in that And can commercial to one the bring win relationships. our opportunities to add grown bank. compete markets. throughout This bank our to against bank result, expansion to growth banking, of positioned our well continued primary reputation a standpoint, this an banking ability proven continue and our without to capital. is steadily acquisitive bankers is

And focused other relationships to be to active bank We're expansion mortgage continue expected program. given refi We we're more won't -- to of that's will dental able make our continue traction look commercial we program goal duplicate going which turned the PPP be to Last business replicate significant to our getting to again particularly operating into year. attract expand in the target the to see. market that's markets, clearly loan the can the help volume industry. we'll We'll MLOs our in the as commercial continue time Turning trends of of and we And specifically PPP also productivity, profitable similar decline lot opportunity the originations, over take banking can volume housing, attractive year's products and as from in home build attract we lending still of participants given But be that capabilities. business, that a see year's use that generate medical services mortgage purchase huge the out a opportunities model. We've throughout With with we larger additional client our We'll lower in to our good some adding XX% processing to developed business. believe about create the accelerator team on We'll new new commercial look to expect our is vertical share, new increase to last same did we've there's for of and refis a initiative doing this to positive that We'll the clients invested markets. well in MLO cross-sell this XXXX. to resulted purchases as in support expertise in revenue for in up XXXX also in to we than and and we in opportunities roster. be us practices. program last steadily markets. niche

plans our Broomfield. new the offices increasing model been beyond IPO, One right offices We profitability to year that any this now about, since scale. our of gain they have the and our of of key as open parts we've talking is don't Vail

will offices to years. the opened newer few past the scale continuing So be on that in our we've focus

to for closer their As these the bring we'll which clients, growth earnings drive level to will they target additional company. move continue in profitability, see offices new

manage bankers expense our is we via which One platform. Western's effectively looking we can the keep continue continue will progression below investing revenue of drive growth levels leverage. commercial that and MLOs, expense and additional operating we're growth, to area we'll believe Although First digital

automated had without enhance program will features mortgage that be and client Our roughly fully that technology so will year, an we acquisitions the enhance capabilities and great used we franchise. opportunity the will levels. From investing move branch increase year, we'll build in efficiencies is this our trust efficiencies, increase to we'll expense be a businesses all in was that the upgrade perspective, increasing and our year, transaction And our that our the through last this year, productivity to generation done opportunistic. we to systems application in we'll can Over scale history, and PPP attractive on that and as an our budget be accretive had same earnings. add adding improve we areas with new And revenue be to to and deal effect talent experience. last the continue M&A highly

value So evaluate opportunities growth. to accelerate to and -- we'll add that our continue add can additional

As show in of another have period mortgage we was process. claims our of loan adding building growing manager on great we business, our and franchise opportunities our feel balance emerging shareholders. adding to low-cost of Ryan, the the questions. story the not that consistent ability a we income a of growth our the that linear diversify more franchise building significantly grew story from take built unique leverage institution the the confident that focus both operating And to our right First deliver of mortgage we our capital Due unprecedented continue and acquisitions. progression roster bank strong has and a our scaling we're offices future. With continue questions. the and value, leverage, up that, into strong wealth our newer client growth we earnings we're and straight private further and on please and coming looks sources all sheet, our to balance will value we start portfolio this a And realize optimistic may up high-performing deposits, level other of open organic in into your to XXXX, outside areas one on enhance been year and for the fee chart, on Western business, transaction delivered to growing those realizing our that the areas sheet create through that would as progress commercial last will for platform operating the profitability but environment the in call for improved very performance public, about Since long-term consistent happy constraint progress.

Operator

from Hovde Instructions] So the question line Group. the Rabatin [Operator comes from first of Brett

Brett Rabatin

'XX. I how then the I sure the in first in then capacity that 'XX, side the much gain talk guidance How assumption much quarter you're doing that, mortgage from thinking on margins the you did sale Can did of XXXX? an impacted make in of that and of XX% for what for revenue the of 'XX. fourth And about constraint, on just what assuming about guidance kind you versus wanted perspective, is to what the understood XQ? you on

Scott Wylie

be let Well, And could would we saw the great. question, if then, Julie, and seeing. the the like response. were our higher felt we volumes needed support to and a in with mortgage we touch in increase that on start When that come you volume QX we rebuild for QX, dramatic me back margin general

higher then QX volumes. market volumes the desk that the team in team. mortgage team, And and then, we deep the and the hired specialist continue And executive for year. and those experience to with the was happened saw First then capital into these move the and markets QX, we deep him. hire both mortgage Western mortgage decided a infrastructure we're create of into to support under of And so dive we in even building of a operations as the middle secondary new outside we And that operations treasury operations to strengthen a function decided did our a

need money ourselves more we've on made XXXX. the obviously, that, in volume the give expense a a hire to we way, the push cautious will addressing stronger during ahead of MLOs and year process way, conservative think in into purchase side, So I the us support in more in progress we get want the to

happened, of kind that's So going we reacted forward. our to what it how in strategy

for terms look MLOs of we what In the for expecting our XXXX, what our granular as of seeing detail the are industry and is expectations year. at the

we market strong for As this I purchase into housing and strong are said, markets inflows saw money. seeing

so more Do want volume address purchase And do XXXX. generate in expect you we margin to to able the to be questions?

Julie Courkamp

Yes.

on perspective, the booked and the a So revenue recognition we on basis, is that the adjusted of pull-through the at time lock. revenues

that's decline. why that So you're seeing

are having As down, volume. a impact big origination on volume revenue the locks the we're seasonality seeing as funding that and not is when coming kind necessarily well. the Originations That's you're it. lock why follow of is the

backlog, So processing quarter quarter you good in fourth to in already in we quarter, pipeline first can lot already. that the see will of make able on the and fourth in first some the quarter, and and that A volume really progress nice our we've the seen really reducing for come our speed. the lock were improving through improvement

kind going a overall are I from think processing first of like we that, be quarter. perspective, through feel the to So the constraints by

Brett Rabatin

Okay. That's color. sure the wanted I the thing I margin pressure. anticipation make was to And understood other then great of

how You the XQ. sure versus still some that in maybe does curious still But assume some exclude a and just like want of And have fees XQ maybe origination impact in in margin might would also yields, that yields PPP more in highest kind Or obviously, commentary the -- you would expect you PPP? core I on loan that mostly about much and a make I positive to I then basis? understood just year? pressure. XQ. this the seem anticipating margin mentioned have Is decline on the coming,

Scott Wylie

last is think the have difficult And X to I out, well. can continue. Well, here really quite held our margins if noise actually I up you that we over expect which you quarters, tell the get would

that Now in we're forward we're in that effort deposit yields, we are deliberate And about be unless able assuming a which talked well, improvements making seeing the flat to significantly last cut rates loan X -- rates here. expecting to is we've not quarters. going

expecting levels least from think to able NIM, So we we'll we're drive we're point at to I it that slight here, not do at at declines from going But this the core today. what know improvements maybe see. be continued

Now top to the hold you loans, first be round on got is, Julie that, talked and SBA a being we're seen little now of seem her noise. PPP what progress right the with I And bit of we've PPP from on think in slides processed. seeing the those though, about not the

So I'm about our mean not sure in talked of PPP, And clear you're round we and that, first there. additional that now quarter. second course, have out a to the from going noise of will I volumes interest that's going to pressure. spread $XX net it to noise noninterest have increased that even income, But in in be another out million so though or it adjust PPP we'll and has low XXXX. creates margin

Brett Rabatin

just earlier then one. this are I'm maybe M&A last one of And on expecting activity hoping or year. if sneak in Okay. I a just the can I increased comment lot have misheard the curious margin. banks must for

if Just maybe you you how optimistic increase any on seeing M&A and any conversations? in the general And game comments might be? are

Scott Wylie

in actively at We've looking as actively de and going years, bank a can us. for focused done acquisitions. acquisitions, corporate of and Broomfield, buy in have of bank been in it add did any bank the at or buy can and XXXX. looking a and successful those add historically the to strategies the that's novo, over department amount works we have for fair acquisitions Vail. RIA expand fee footprint and something fee example, Well, a on acquisitions and we certainly by development business actively for or us that's in expansion fee business the we we're can We do our and we're We very things business nicely

Operator

question Gailey KBW. from from next Brady And of our the comes line

Brady Gailey

CECL I So yet to points. I XX does screen adjusted you But reserve, are below know, start that the basis as just as levels. you know compliant. not mean, peer an want I guys with

we level? So roughly look think Or as year maintain slowly do or towards you the next that you'll about going X, think reserve we this higher? X% should

Scott Wylie

that. on credit that, we Unfortunately, decided up I the to of CECL is allowance work we we a in to what And would all from improved and of think to take on roughly our answer you implementation roughly What XXXX don't XX our we basis that was yet what And going us. significantly. spite just points years for haven't have be saw metrics XXX. of in in done a mean couple to great

or we're not But what losses knowing look, on And XXX to any today. allowance, loans points, about so or dues, none about that that's NPAs about a seeing we increased it we're say, or I XX% for would our a we And we internal want XX of rapidly or that metrics yet, would know internally, book credit our be whether basis I or in mean, I growing a points year. direction loan this increasing basis problem where as allowance. percentage you, assuming tell the think NPLs of trending that us make is as past

Brady Gailey

growth, that's growth, And guys then, even have over you annualized had held looking and Okay. loan loan the of for fourth at XX% you lot in out growing the Scott, this PPP back a when loans year, success the sale. quarter,

enter we you that, on as are XXXX? into robust loan great just thinking growth So about how

Scott Wylie

important heard It's everything thinking most hear a I little that didn't the then about? you, are we get how to in up like bit And I hard Brady. until word sentence.

Brady Gailey

about just I was XXXX. for expectations asking Yes. loan growth

Scott Wylie

Yes.

saw with ex-PPP we're what to loan expecting think I growth again, we XXXX, in see in So noise. line

Operator

of Clark Matthew Sandler. comes from question Piper the next from our line And

Matthew Clark

had this rate give you highest loans new us average quarter. yields, Could that just On you on the weighted you percentage? the specific that I loan think mentioned

Julie Courkamp

was new December X.XX% for average production there. The rate

Matthew Clark

you about that have it? think? mix And elevated there December Or is something that the in do sustainable, might is

Julie Courkamp

in December quarters. with in that mix that several the in month. commercial of a But is loan overall, of is by mix been on we've that what last on little a for heavier It's really the was in loan that increase yield bit focused production that driven the is and we've something kind the book the driving

a in our see where little come it that expectation think but maybe is in. I So would higher, that, to we with line like that's

Matthew Clark

there in But for sale the the on XX% cadence we I terms gain gain portion we then in And the quarter sale, year. face wasn't locked, year, that you through a quarter, to pop the come first assume the quarter Okay. and that see on a the through just revenue that's see of might despite how fourth should the here. constraints heard capacity mortgage Is decent on see first some come I guys step-up the on in so that of here down you'll in you seasonality? the going

Julie Courkamp

and third line is I wise, of we traditionally us the than QX with in so what XXXX the lower more So quarter. seasonality seen have think second in QX for

quarter is our third is originations and at Colorado primarily least, market, always buying which higher come for where home season Second loan mortgage from.

but for too a a I QX, from material expect where would little bump from So not bit were. of QX, we

and be I think revenues most the see come and in where of we're in second higher going levels to quarters. would third the

Matthew Clark

have it, then it, And PPP -- you quarter, you past guess back average can I'd offhand? but you Okay. do the have on if the can into it. I take just I balances this

Julie Courkamp

we Total asking? XXX so had is $XX.X -- were XXth loans that what in that loans you're the through January, of is dollars Forgiven. Average

Matthew Clark

balance into -- the PPP was to with No, margin. back basis the XX it trying the point I fourth to in quarter. can get just average the outstanding I impact just

Julie Courkamp

December, So most November. into come our forgiveness like late probably of November,

quarter halfway reasonable I So guess. be would say pretty through the

Operator

in Haberman from Ross more [Operator queue Instructions] of Investments. We the question currently from RLH line have one

Ross Haberman

Have at of And that. lot you with the that looked banks you and the to sell a seen to all that? want and their think PPP loans option? what cost with deal about I've do decide forgiveness don't involved

Scott Wylie

automated it economic doesn't to we hold as hurt the earlier, because sense. regulatory the them. question loan accounting Especially your day, accounting We NIM. that of those of really required the none But off loans, now for is the our make make treatment, does obviously, treatment. haven't. capital for it PPP the And money processing the with at of end We the

forgiven. able we're them. mean, those Obviously, with those and I to off of So the we keep get build are if benefiting relationships making better they book borrowers them, and money shareholders then fees as the we with

that. So a doesn't lot to digitize but that's all have analyzed, given I for it our we think us, of something ability make sense

Ross Haberman

income enhancements and/or revenue if in to fully realized the Or so? are and last that And And of are they new quarter branches or type it from thought? follow-up and synergies just revenue you you The in one is the generating assimilated? X, the they profitability question. purchased will to there You begin all more And of the come? when yet? haven't sort so, more kick

Scott Wylie

would the So acquired XX because locations we them, that in as that you middle for we can't purchases. close the of may We X but that X well, regulatory know, recall, the of Good question. We notice of you days as closed, do setup you QX.

the our associates growing success us, location. a days we we from more folks loan really business closed partners. lot those valuable proven we than anticipated. have The XX over for retain one, middle in be of and that X acquisition And think, and we, good that to additional retaining later, QX, had had I locations So brought new new tree that

we've highly so projections And it to think accretive was a tell the I for proving thought win-win be, it's our shareholders. there, real I would and going probably you, outperformed be I think, to and we

Operator

And we of Clark queue from Piper in question a do Matthew line have with Sandler. the

Matthew Clark

Just outlook. margin follow-up on want the to

points but call, or NIM in be at don't thinking if might pressure suggests at to just to then early XX I sure should look at think same I basis the your modest page core or not back I you liquidity, were low not know, NIM X.XXs. mean, I about? there some earning, loan it suggesting I'm there's something it the holding like XX you were it funding whether maybe wanted consider maybe the and incremental ex-PPP, the And your and yield sounded on X.XX% core the basis line. migrate points, make we you

Scott Wylie

and it a gave I that Well, We how view book. it. liquidity out my you're how rebuttal? excess mean ask right, you plays in Julie could depends of successful the for loan growing are I we

Julie Courkamp

I our but so think you. -- safe of it I be yes. to say say ahead little X& where depends I room, bit a a us But Give guide maybe. would it little that's that, would think would I totally on core NIM X%, at

Scott Wylie

financial there particularly section was All the today. again. any we'll fun questions, That are right. If do other

Operator

questions to for closing turn like the At further any remarks. back to would no this time, call and management I'm showing

Scott Wylie

We in. and All right. hope for your Thank support Well, your do thanks, appreciate a you. interest, and you weekend. everybody, have great dialing

Operator

Ladies and gentlemen, this does today. conclude your for call conference

You may disconnect. now

First Western Financial (MYFW) 29 Jan 212020 Q4 Earnings call transcript