MYFW - Earnings call 1 2021 | First Western Financial, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the First Western Financial First Quarter 2021 Earnings Conference Call.

[Operator Instructions]

I would now like to turn the conference over to your host, Mr. Tony Rossi with Financial Profiles. sir. ahead, go Please

Tony Rossi

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

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

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

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

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

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

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

Scott Wylie

good and Tony, everybody. morning, Thanks, right. All

that began last year. increase continuation in the Our first generating reflect quarter of we profitability the results significant

the more of earnings quarter was $X first financial than in of income results are both net and per XXXX. increases over our XXX% Our share million $X.XX

we ROTCE ROA at our with a coming at We're about XX%, our the of progress coming our ROE our substantial far high-performing and just XX.X%. operating from to We're our path also improvement still in normalized make quarter, returns level becoming institution. in continue for environment, exceptional in to at in seeing X.XX% a on

Our strong, improvement deposit in deposits our very mix. low-cost remains resulting acquisition new which of inflows further in strong and client activity is

Given clients the and large the in on deposit often the placed types some first accounts, model our target, funds until our a we are activity of business and that we sheet of bit in accounts temporarily quarter. investment that get of saw balance quite we management sit

of the impacting enhanced this significantly term. of our Well, We short negatively income fee in believe franchise. the deposits value long-term margin net provide the and excess liquidity low-cost generate creates interest they that's they addition these and clients

of history, our quarter loan pipeline start year, small left last to year. the level fourth relatively the in which we the In highest of our production had loan

So we helping spent the as rebuilding access the as funding. quarter second on focusing our of first PPP the round well pipeline clients

to our quarters, few and on new average some we in production. yield last try pricing the loan our Over improve adjustments made

banks other were to to in excess pricing order work. the as their continuing to in progressed, that their very first realized liquidity quarter be However, we aggressive put

quarter. impacting first production This the loan ended our also in up

made some While competitive. we going to in to more pricing be underwriting, disciplined requirements continue we're our in be have to adjustments our

get our but back deals track. win more to help we're this range in production going on our to enable is market, and aren't in line the offer, by pricing being should with loan where We a lowest the now priced

resolve and We now in able times the to fourth we were returned that last about loan our to earnings constraints those normal. our have In our call, some processing limited our constraints business talked in mortgage quarter. production processing

mortgages, the continues and continued we contribution result, able to a a to for our make capitalize on residential this profitability. were demand business seeing to As strong significant we're

from on for good which an loans quarter Our net XX% the asset continue was see up we quarter $X.X million, year. of the also to quality and was prior first perspective, trends. up very the From quarter mortgage last gain XXX% from

loan last have regularly of returned to long losses. All had mods X year once net the we charge-offs, continues And which decline. history COVID-XX now our and credit low made exceptionally nonperforming payments have we scheduled assets our to continued again,

X. Moving to Slide

also Our improved value financial significant value. not our and tangible book strong increases is our but driving earnings in performance only growth book

value During per share our book value increased quarter, book tangible our the share first increased per while X.X%. X.X%,

our entered recently We've banking, X. share, per segment. private performance to our mortgage commercial of the shows Slide our a slide the that This new to deck Turning excluding pretax earnings reflects trust in the other banking, areas. want last we to year mortgage Obviously, was for but extraordinary businesses. making progress year an business, that the investment and the management we've overshadow don't been

a this quarter for higher sustainable path from in our first we've to built was the earnings producing X% slide the better and In profitability. earnings non-mortgage So pretax level per that share a history. prior provides the our and the that's highest quarter, increased the sense segment foundation in

loans quarter. the from sale, quarter third had million, ever the PPP high our $XXX.X had up production $XX.X On X. was look our -- end the loan down $XX.X prior including the we X.X% the million but were the from quarter loans, that basis, or $XXX million at average from Slide trends basis, We'll an very mortgage prior end held up loan fourth total loans highest year-over-year. we for in XX% which period held of a in investment Including of the or to for portfolio. Turning On loans a and increased prior quarter. level million

than million the Payoffs period end in at brought $XX a the that remained one end loan historically the occurred and $XXX.X payoff secured and we've of totaled The included cash low-yielding seen payoffs quarter. down higher quarter of million balances. right our

commercial the of down that projects owner-occupied in During real completed. recently non were saw the estate portfolio, loan were construction we our our lending the payoff following quarter, while growth balances strongest

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

the total or $XXX.X quarter. Our end to the prior of from increased deposits million XX.X%

driver of As earlier, relationships. deposit mentioned the I new was client growth primary

We continue in total noninterest-bearing see mix from a of deposits ago. increasing with to XX% deposit improvement our XX.X% to year significant deposits

our and bit commercial quarter, deposits. we in improving downs Slide look X. XX% million prior the platform, commercial a to base more building or $XXX our in related and up the down by to which We'll deposit the progress and be at the very from transaction of our diversification of payoffs banking from Moving is the adding year inflows to increased end funding, from providing quarter, loans low-cost continue partially pay a end Due saw but to were quarter. deposit XX% ago. strong, Commercial the prior loan PPP

Turning Slide to management on and investment X. trust

conditions, assets combination total management due market of $XXX.X improved The and was made Our client million increase accounts. additional prior quarter. to increased from client contributions to a under accounts end the of new the existing

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

Julie Courkamp

Scott. Thanks,

Turning to XX. Slide

of it provided on the PPP We have quarter. the in the quarter. We various $XX how an first approximately forgiveness update had first our loans impacted received PPP million in program in metrics participation and

of of $XXX round $XXX.X the at on and PPP nearly $XX.X these $X.X and remaining million PPP This of have of million recognized. approval loans on sheet program our received also the April. million had submitted the in resulted quarter in be loans million balance applications the end the in We remaining middle for loan second through fees of to

negative had quarter, With a low-yielding the a in impact on of relatively margin points. interest first small amount PPP the X of accelerated loans fee our net recognition basis

from resulting the loans. the strong preferred PPP to plenty our we have capital deposit on PPP facility to we liquidity have can of loan inflows, continued treatment to get we our that so While origination continue these liquidity fund utilize

to our increases continue revenue quarter interest revenue. keeping Relative at XX, we quarter look we Turning pleased and was our strong level of while of up while expense noninterest are the coming net was generate able income. both very growth a our And this of of noninterest income XXXX, XX.X%. XX.X%, while had Slide income our in stable. interest growth to with to first to net revenue very income relatively we'll that are We gross a

in the Slide interest to we'll at Turning income margin. net and trends look XX,

was accrual. interest interest the from quarter. X% Our decreased of PPP-related prior lower decrease to fee days income due The net X fewer and income

a we comprised payoffs saw loans PPP of in the other large a our total in in loan the loan Given average loans, our decline portfolio, lower-yielding quarter, residential resulted areas X-X which of family mix this yields. percentage and

margin basis help our net increase carrying. from as in residential things bit our liquidity holding down The basis, interest primarily of a doing PPP quarter are net short net net before margin the the accounting the by to our loans secondary due market. On liquidity adjustments our approximately into selling interest mortgage XX quarter basis basis by the X.X%. we this income the points points. are prior a and purchase few excess loans interest XX from longer XX This that our decreased margin excluded, we margin, support to impact such When prior quarter. a term, reported was are and to In impacted interest was the them points

doing anything But aren't assets. longer-term low-yielding lock into ourselves we to

positive But accounts the later season transferred year, from into always some balances deposit in work have tax margins. growth liquidity the as our in loan the loan are inflows which as having to well. will generate a eliminated liquidity of anticipate portfolio we still plenty to the of be outflows Some as on management certain investment and put impact increases

Turning to Slide XX.

fourth a up income LA the gain completed. income last -- to were of the XX.X% this from team and loans. quarter was noninterest amount up interest to income was quarter sale trust prior net In $XXX,XXX investment fees approximately from mortgage net excluded, noninterest Relative management When from from we due the the quarter, quarter, Our first quarter. generated before and prior was on X.X% our of fixed our year. up fee higher the is the income prior

provided XX, Slide have detail operations. our mortgage additional On we some on

our we constraints had impacted that As and record a resolved Scott mentioned of earlier, quarter, quarter processing we last performance origination. the

However, the which down is were a when is revenue recognized, from mortgage quarter. prior locks, bit

Refinancing interest $X.X relatively in the we originations consistent accounted of to as quarter. with and this business through prior generated income see in in in started we the for net our margin profit quarter, we million and remained the of XX% move increased. fewer quarter, although quarter the $X.X rates first on revenue million refis first Our

lower some expect the to offset and the summer of We volume in volumes by spring be higher purchase refis months. from

XX and Slide to our expenses. Turning

quarter. expense essentially noninterest unchanged the was Our prior from

in been was of by we the impact, to Without would However, related reduced costs the noninterest XXXX. origination to our that expense round loan in range this approximately start second deferred loans. first have expense quarter $X million PPP our projected

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

in expect $XX.X to to million $XX expense our noninterest million continue XXXX. half during We run to the of range of rate first quarterly for be the

Slide continue XX. our across to We in the portfolio asset trends at look positive We'll Turning quarter. saw quality. first the

charge-offs by returned Once very XX had and has scheduled level total to that the assets approximately remaining see We to payments. since net on basis one points decreased of and assets. low nonperforming Our losses with portfolio we quarter of regularly modification, immaterial quarter. in a entered to declined and continue loan its this the again, $XXX,XXX loan

immaterial Given the not quarter. did loan stable provision and in we for losses quality any require our asset charge-offs,

loans our loans, excludes quarter. points acquired the at and end XX to allowance of for from prior which loan the X.XX% increased which loss, basis includes loans However, acquired -- and total PPP adjusted of PPP

Now Scott? I'll over back turn the to Scott. call

Scott Wylie

Thanks, Okay. Julie.

of general with macro our and the the XX. Turning outlook. in confidence We've about one vaccinated have seen definitely an markets. vaccines, about dose. impact environment this of XX.X% the last to least in some start and comments with a is fully that has very We're recovery. our our Colorado seeing efficient at clients XX% wrap Slide population comments as the economic level in on I'll some up the of I'll rollout of about about evening, have

in-person for things From an an encouraging sign asked to getting back that which anecdotal clients normal. is perspective, we're having more are meetings,

some loan we're loan made of since They'll our on the excess stronger into pipeline the probably to of loan work pricing our us the the year. accounts. take also that to stronger generate investment growth for half growth And loan profitably in continue requirements, in income liquidity, redeploy position adjustment traction. another put management we'll pipeline. second us higher will our liquidity We we a to in fee getting more quarter production see it's and and enable loan to The building of rebuilding transferred as start

progress loan in it nice mortgage and capitalize and trends high will months. seasonally adding -- purchase originations the population MLOs, The We're housing our of the summer adding also spring level we're strong MLOs of enable on markets. strong on making in officers, to us ahead are growth seasonal focused

segment result, making significant the a mortgage to to our we expect continue As contribution overall a profitability.

the we revenue should level profitability. of is drive increases and higher generate further leverage our additional liquidity income, growth With operating in we redeploy we that additional our realize our excess fee and in

starting to growth give is to opportunities more the our organic to also positioned M&A becoming evaluate enhance could more in are well and deals value increase of our discussions we're While drive additional franchise. markets the favorable. for that us environment growth, acquisitive

the will return few we which and a growth look do, that see supplementing loan the had past we that normalized improvements, certainly continue in more merger of growth growth earnings we're earnings being given can this an a transactions efforts. year, loan we further seen to very now of without our got good past level we've profitability. benefit to the which our that success confident the start partner, over viewed accelerate the And over year We're with think we'll we've to should M&A as further strong From as off I perspective, additional helps our later quarters. year. And a we desirable

open And with please to the take call. up we're happy questions. Alexander, your that,

Operator

[Operator Instructions]

Clark We from Matthew question have your Sandler. first with Piper

Matthew Clark

$XX.X step-up thoughts so, second your first half. if it? outlook, And driving that for Maybe to and think are on the million first just a the in I expense be mentioned you Does that the there million imply $XX what half? what's might

Julie Courkamp

that. second I

wasn't continue will for think is the moderately amount half. will increase, to second step intended give guidance pace there that the we that to in that that normal kind I expense given you happening increase some nothing guidance for for. that grow I increases imply just was be in expenses we balance above expect as but It there it's the we've have increased would the that expect of up half. of total sheet to nothing -- an trying that first would

Matthew Clark

the targeted XX% to reduction you just had a XX%, year, on the I mortgage Okay. think And going think then piece, other obviously, for I guys the year. way start the

of purchase for going spring mix and the the in thoughts refi volume and are purchase versus outlook mortgage what sales? of kind forward and more overall on summer, Given the your

Scott Wylie

We even big year, and we we we to money then clearly, higher then that refi in refi-driven. saw XX% the over than And XX% a XX% expect refi QX refi, was we've like we've a Well, in number which or last drop was the don't historically. some flip the And QX activity. year stronger in ago, purchase but in giant seen so boom of last that some QX were quarters and or QX, X would doing QX expect to seen now, XX% continue. that months, and

fact, the April this were purchase and number like we to to In XX-XX at a refi. week, we're looking production more back

in purchase when this is activity increase see big the a seasonality the But that of is the year time we news factor. of good because

XX% estimate decrease last like where from about today. sit had I seems think So we the that we a that from year talked reasonable

Matthew Clark

we kind increase quarter? AUM, which fees us, in that generate terms remind lag quarter. there Okay. see maybe this similar revenue? a revenue just Should this And in the you the you AUM was a step-up of realization is from Can in on of of the then on up your just

Scott Wylie

much of I think sold in gets recognize what and than as technically, implemented to sales accounts the happens into and -- forever And forever, assets. it no. get because as it's I we mean We takes and they're a the it management investment process take closed that it can income X-month the that. the activity reality, but But or be to say and over yes, longer moved cycle wont' the just the including have. going

probably the I think future see But fee is we've benefit question the seen in no. in some we're I think So income your activity going that first quarter. to to in technical quarters realistically, answer from the

Operator

your have We KBW. Lay next question with from Woody

Wood Lay

in is of in wanted to growth second I we the can in call. shaping you half get Just How far on provided up the the up touch And so appreciate loan you the that back back growth. do in the earlier quarter? high-teen color the range pipeline year? think

Scott Wylie

try to like a But get loans, could rebuttal I year, something from could I at to how and on low. look depending you it, Well, grew we by then last XX% we that, want answer Julie. think

year. level million payoff that's on that so we in that of expect our there's And quarter-over-quarter. nothing for don't We $XX this numbers changed XXst But period of kind growth end the markets. skews March had a

I fact, new and In more conditions growth stuff. clients favorable gotten would that say activity loan have economic and and all for

first So is like at about I our size, produced seems talked very me, the mean, how, mid-teens, for quarter, this Woody, in number we've relatively organic like a which reasonable teens, before, small to core look like outstanding, March notwithstanding. year growth impact can a regional loan We've growth. the on bank, we at But have underlying good the saw loans small that appearance. loan changes, the overall example you $XX big of a million in average small numbers the XXst if historically

underpinnings economic here growth. to pipeline see actually bit I I a And April. little to good strong. are continue going in we're is mean think up I say, The as very

be to that? other you'd want add we'll color Julie, I there is to So think fine.

Julie Courkamp

to on was part touched pipeline his of related the and you question that. No,

month pipeline some January. seen in every since the have growth We

feel that I starting season, more our like going we're into in more areas. second second the third and in quarter to typically and activity in quarter happens our So momentum business see the

So I think to. holding pipelines out that are showing that trend

Wood Lay

it. good pricing Could mentioned, really loan the point? on side And at as now. That's loans the you does Got new color. balance that this just some it is then are intense right on sheet seem you coming color where give

Scott Wylie

Yes.

and start, done. Julie, So call we're you after I'll then I'll

If you're ready.

ability that seen for we decision has think is -- about we talked conscious quarter competitive bit. quite pricing we calls that. in me, had which do we made the first we I And a increase what thought have So the last on a the these but to year, tightened because to market

we've so And been to low unreasonably pricing to quarter. last reluctant would consider what we match historically be in

And been for a factor definitely so this year. that's us

a taken don't and deals want price. look we've we at think I said, lose good that to on

competitive we're And going into a little so being more QX.

generally, challenge. I has would pricing a you, tell But been that

Now that quite pricing in our thing add? having it number that, new QX. things. us. a kind for bit good of said production, I think, X.XX% is of you again, And QX in in Julie, to a was is was which part rate QX, average But our any onetime wanted stronger than was

Julie Courkamp

No.

Wood Lay

from That's to bit the they All or CECL a helpful. And me, the then increase shrinkage. right. due just last little your loan saw reserve an of levels,

was next quality pre about pandemic really sort of the couple of where points having you running think the back to currently seemed higher quarters? they're credit about levels XX over envision it that I basis Do running reserves strong. pre-pandemic. drop reserve With than

Scott Wylie

We're not that. for budgeting

absolutely You're right.

sure over we we're XX going last fact, impact improve months by we ahead We that's have But any and have us, use to of continue of internally. quality we CECL not considerably credit the and, what be. seen the measure know in that strong

which don't CECL of that's accounting that, really figure that acquired big now, a the our reserves. PPP us are really level don't for we big is purchase we loans so can And grow we of the level our so we And is And and now, But credit increase for [ a Net and the for anticipate us what release for frankly, more into over work to quality. start for I ]. very in out of were X% going adequate anticipate to starting strategy mean have. we reserve think prepping

Wood Lay

just you Right. event Can XXXX you is remind CECL a me for all?

Scott Wylie

Yes. Correct.

Operator

We Bill from have your question from next Dezellem Capital. Tieton

William Dezellem

broad December. receivable more then have balance of questions couple was versus that? $X million and I Accounts was What more sheet up than a question. driving a little a

Julie Courkamp

activity and of of as and some for lock the normal activities portfolio. interest commitment So well us business the rate mortgage normal valuation as

a a So other bit of drives receivables the of that change valuation typically the and in assets.

William Dezellem

assets? other And Julie, did you just say

Julie Courkamp

There's different assets. and Yes. within receivables lines

William Dezellem

question approximately December. my just then, You other versus dropped jumped assets which $XX was million to next

would So how somehow increasing? offline, accounts walk prefer it And totally to to through you kind take mechanics so, of that you fine. the that's if receivable related work And there? is if

Julie Courkamp

within it mortgage But the the difference take happy I'm it's to offline yes, the as well. pricing. just activity in

William Dezellem

right. All

Let's year. jump you are opening in to many your this planning XXXX? How on offices growth anticipated

Scott Wylie

I Well, depends. think it

these the organic and how profitability offices production the once happening loan to of depending maturity. million excludes on today. that these and mature, main XXXX. rapid going we've offices have, contribution in I think, that our that XX% key a with one And continue that think that trust this leverage on of our them you shows And We mortgages, I time, that more think focus of kind I it's think reaching is getting last increase slide, And to to again, growing count be $XX year $X need terms margin. operating XX X course, in seen growth. or offices of or into We story. grow, We XX% million of can each and offices accelerating they're believe offices, businesses

kind mean of first I that's piece the that. of So

offices new office. And when a a existing we'll The have the years, revenues own of contribution, their that they then is can second breakeven into offices. as level certain they we reach piece couple operate started move of over in incubating last that

temporary of space over nice for And most X examples out the into that, That's so last success -- us their a space. of the recent we've just story most a been move permanent Vail And up them Boulder, then in we've for permanent incubating space got moving into or year sometime we've and QX. got but we've be that early QX Broomfield, late been so. they'll or

now. couple a projects of other have We going incubator

So maybe third the be that. this more offices seeing in activity, opportunities. would that target. more expansion, be commented X terms leg another kind on that activity, of We're and general And of our then of acquisition would year incubated we

So there that be new or out sometime could come offices that eventually 'XX. of 'XX in

William Dezellem

piece. And you following that your up what it on be really chatter, are seeing the dispersion? if office more at would more adding densely adding to that Or adding you you currently you would offices really are you be infill you were acquisition of within From would suspect likely markets? with thinking geographic do a would deal that that be some

Scott Wylie

work We on both.

list think some a are markets of just and as we are some markets are us in interest and And about new acquisition, to have We we is a of that fill don't development. actually corporate markets. of think

were so teams. out of And recruiting kind lift we

in banking add fact over those unique Western we bank trust Western the and just Bill, location, do things we've done services buy about branches. their can RIA it First and First is that years. talked to We add at buy de and novo. can And As the we their investment service you we've know, can an a successfully and all then to

Operator

[Operator Instructions]

from We RLH Ross have Haberman Investments. your from question next

Ross Haberman

question of quick a Julie, That $X.XX XX. non-mortgage I income. Slide have on

how on backed the income fee If PPP $X.XX? the to for much quarter, that lower out does get we what you the do

Julie Courkamp

for interest about slide So income. in net That I a the have there talks we you. think PPP

X So income net net impact. basis the was interest interest for program points margin $XXX,XXX, of PPP

you if So take you $XXX,XXX of off there. get would that, the

Ross Haberman

Got it.

you and How Okay. difficult the of the the that? in a And competition quick bit an just side? Scott, about Alpine the like like deposit Bank on competitive both or they then a little for likes and Could talk question are guys you. loan

Scott Wylie

any with forgiven. fees really So, quarter. until don't a know recognized fees in PPP-X, or amortize you anticipated. Because either QX PPP me less But about forgiveness was the with think quite have were fees pay didn't first ask delayed. you new the he bit Julie, off, I we that we would book PPP-X get than in they the I And the

I And a statement, from PPP correct so QX. that the was recognition fee Is minimal, income Julie? think, in

Julie Courkamp

Yes.

Scott Wylie

I And in seen, Ross, or was environment. the in anyways, question our we've I basis actually, think, me reduction So deposit X I in QX. more think competitive X point for about your costs improvement

So that. of I we're nice managing a think doing job

of the mean landscape competitive that. spoke loan I to terms for I pricing, In

seeing lot a I of fortunately, we of think liquidity pricing. banks bid do what and And financing. we're bid the to financing. like having loan don't is competitive a lot willing project down do We be don't

market. We in the have obviously to be

can Our borrow borrowers anywhere they want.

relationship-based do private to tend of we But kind borrowing. banking

X And First have I bank so between do XX structure than get think we basis we Western. typical price do here think of and at or loan community from maybe retail ability probably another a somewhere I we probably points more And that might. benefit that in

Operator

next with Sandler. from Clark Piper Matthew your question have We

Matthew Clark

on I outlook. thought, touch margin we should the

I level I your to expectation there potential latest do interest-bearing NIM start basis think around would through a is loan little the the we out forward? is and it there renewed, maybe spoke, points, up, to I growth going X.XX% on costs overall I given I core thought bit? costs Just was XX you the to those mean, for deposit view maybe that guess, -- pressure start -- guess there press of what's -- picking an time last thinking there

Scott Wylie

to Looking bottomed have month month, NIM out. by seems

that right the sure, of particular, in noise adjust For us, difficult, it's so that's outside, number all in now. to the from for I'm

the say, you've got factor PPP would in keeps there. think additions situation, to more getting, which I I the complicated with

factor of the excess to liquidity. the and out you've cost -- then And got

think there. going think We NIM we get take X.XX%, So X%, probably year. improve of could we do projections Western rest mid-teen kind and But do First It's our of the of operate we the internal this better to to are bottomed X%, the of should than range we that X.XX% year think we that that can X.XX%. the in us that's of that out.

during of for looking improvements some we're So the the rest NIM year.

manage for really NIM. We Now interest for that, income. we net don't having said manage

But see can that that reduce that so NIM we way profitably right anticipate for And growth problem, don't would that course. now, use and we can't I kind short-term of use in impact, a of decline we've then rapid we continue deposit have seen last NIM, to to think quarter. creates the liquidity nice have if the to the that will we liquidity we invest that continue to the is

other the NIM add color story? there is Julie, you'd to

Julie Courkamp

which March December. from points costs, seeing for in we points, is to were it where our a basis Particular deposits was down XX basis deposit spot rate just few in

So as your we're we expense of numbers, we interest The seen mix like you I our in on we're better. kind grow. I to think think have question, But are. continue is where chilling

continue we other the the more which deposits, and with as cost ] our grow will to [ help half noninterest-bearing So deposits well. continue than to

Operator

at conference the I'm showing this I management for now time. back questions turn no further to any to closing would remarks. like

Scott Wylie

Great. Thank you, Alexander.

is here, just strong wrap obviously, So another up to quarter.

in much very I and and expenses. number this onetime There's underlying the fees business assets from revenues think understanding one, than the is activity, we to key strong. PPP and to there quarter some but faster trends, underlying continue noise is mortgage which, grow and

months private and mortgage are net entering up Gross two, that year. Our year, assets strategic we're is well. a are strong with Number XX%. revenues core our year-over-year. up seasonally of XX.X%. us of big loans X.Xx performing banking, the the fits X now business strong months the X XX%. number. income up Those for up Total Total is It's

recover Matt third to up that touched PPP our the and on continue put the I pretty work as with we balances. core reduce And there actually think NIM and was is well should liquidity point holding we last

the pleased performance underlying for dialing really Thanks and appreciate here. so we're much your First interest that everybody's And in. time think with I questions sure today So in Western.

Operator

Ladies call. you today's gentlemen, wonderful this for and Have concludes conference Thank and may all day, your disconnect. you participation. a

First Western Financial (MYFW) 23 Apr 212021 Q1 Earnings call transcript