Company Quick10K Filing
Quick10K
First Western Financial
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
8-K 2019-07-29 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2019-07-29 Regulation FD, Exhibits
8-K 2019-07-25 Earnings, Regulation FD, Exhibits
8-K 2019-07-19 Regulation FD, Exhibits
8-K 2019-06-14 Other Events, Exhibits
8-K 2019-06-05 Shareholder Vote
8-K 2019-06-05 Regulation FD, Exhibits
8-K 2019-05-06 Regulation FD, Exhibits
8-K 2019-05-02 Control, Exhibits
8-K 2019-04-25 Earnings, Regulation FD, Exhibits
8-K 2019-03-18 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2019-02-04 Regulation FD, Exhibits
8-K 2019-01-24 Earnings, Regulation FD, Exhibits
8-K 2019-01-24 Earnings, Regulation FD, Exhibits
8-K 2018-10-30 Regulation FD, Exhibits
8-K 2018-10-25 Earnings, Regulation FD, Exhibits
8-K 2018-09-24 Regulation FD, Exhibits
8-K 2018-09-10 Sale of Shares, Exhibits
8-K 2018-08-30 Earnings, Exhibits
8-K 2018-08-02 Regulation FD, Exhibits
8-K 2018-07-27 Officers
BK Bank of New York Mellon 39,948
WAFD Washington Federal 2,809
SFNC Simmons First National 2,307
SYBT Stock Yards Bancorp 831
UVSP Univest of Pennsylvania 743
LBC Luther Burbank 599
CCBG Capital City Bank Group 417
MRLN Marlin Business Services 287
CFFI C & F Financial 217
SVBI Severn Bancorp 102
MYFW 2019-06-30
Part I. Financial Information
Item 1. Financial Statements
Note 1 - Organization and Summary of Significant Accounting Policies
Note 2 - Investment Securities
Note 3 - Loans and The Allowance for Loan Losses
Note 4 – Goodwill
Note 5 – Leases
Note 6 - Deposits
Note 7 - Borrowings
Note 8 – Commitments and Contingencies
Note 9 – Shareholders’ Equity
Note 10 - Earnings per Common Share
Note 11 - Income Taxes
Note 12 – Related‑Party Transactions
Note 13 - Fair Value
Note 14 - Segment Reporting
Note 15 - Regulatory Capital Matters
Note 16 – Subsequent Events
Item 2.Management’S Discussion and Analysis of Financial Condition and Results of Operations
Item 3.Quantitative and Qualitative Disclosures About Market Risk
Item 4.Controls and Procedures
Part II. Other Information
Item 1.Legal Proceedings
Item 1A. Risk Factors
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.Defaults Upon Senior Securities
Item 4.Mine Safety Disclosures
Item 5.Other Information
Item 6.Exhibits
EX-31.1 myfw-20190630ex311de225a.htm
EX-31.2 myfw-20190630ex312c45810.htm
EX-32.1 myfw-20190630ex321143c09.htm
EX-32.2 myfw-20190630ex32230c70f.htm

First Western Financial Earnings 2019-06-30

MYFW 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 myfw-20190630x10q.htm 10-Q fwfi_Current Folio_10Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-Q


☒  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019

OR

☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission File Number 001-38595


FIRST WESTERN FINANCIAL, INC.

(Exact name of registrant as specified in its charter)


 

 

 

Colorado

 

37-1442266

(State or other jurisdiction of
incorporation or organization)

 

(I.R.S. Employer
Identification No.)

 

 

 

1900 16th Street, Suite 1200
Denver, CO

 

80202

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code: 303.531.8100


Securities registered pursuant to Section 12(b) of the Act:

 

 

 

 

 

 

Title of each class

    

Trading Symbol

    

Name of each exchange on which registered

Common Stock, no par value

 

MYFW

 

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

Large accelerated filer ☐

Accelerated filer ☐

 

 

Non-accelerated filer     ☒

Smaller reporting company ☒

 

 

 

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes ☒ No

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

 

 

 

Shares outstanding as of
August 6, 2019

Common Stock, no par value

7,983,866

 

 

FIRST WESTERN FINANCIAL, INC.

TABLE OF CONTENTS

 

 

 

 

 

Page

PART I. FINANCIAL INFORMATION 

 

 

 

Item 1. 

Financial Statements

6

 

 

 

 

Condensed Consolidated Balance Sheets as of June 30, 2019 (Unaudited) and December 31, 2018

6

 

 

 

 

Condensed Consolidated Statements of Income (Unaudited) for the Three Months and Six Months Ended June 30, 2019 and June 30, 2018

7

 

 

 

 

Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the Three Months and Six Months Ended June 30, 2019 and June 30, 2018

8

 

 

 

 

Condensed Consolidated Statement of Changes in Shareholders’ Equity (Unaudited) for the Three Months and Six Months Ended June 30, 2019 and June 30, 2018

9

 

 

 

 

Condensed Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 30, 2019 and June 30, 2018

10

 

 

 

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

11

 

 

 

Item 2. 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

36

 

 

 

Item 3. 

Quantitative and Qualitative Disclosures about Market Risk

62

 

 

 

Item 4. 

Controls and Procedures

63

 

 

 

PART II. OTHER INFORMATION 

64

 

 

Item 1. 

Legal Proceedings

64

 

 

 

Item 1A. 

Risk Factors

64

 

 

 

Item 2. 

Unregistered Sales of Equity Securities and Use of Proceeds

64

 

 

 

Item 3. 

Defaults upon Senior Securities

64

 

 

 

Item 4. 

Mine Safety Disclosures

64

 

 

 

Item 5. 

Other Information

64

 

 

 

Item 6. 

Exhibits

65

 

 

 

SIGNATURES 

66

Important Notice about Information in this Quarterly Report

Unless we state otherwise or the context otherwise requires, references in this Quarterly Report to “we,” “our,” “us,” “the Company” and “First Western” refer to First Western Financial, Inc. and its consolidated subsidiaries, including First Western Trust Bank, which we sometimes refer to as “the Bank” or “our Bank.”

The information contained in this Quarterly Report is accurate only as of the date of this Quarterly Report on Form 10-Q and as of the dates specified herein.

2

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following:

 

·

geographic concentration in Colorado, Arizona, Wyoming and California;

·

changes in the economy affecting real estate values and liquidity;

·

our ability to continue to originate residential real estate loans and sell such loans;

·

risks specific to commercial loans and borrowers;

·

claims and litigation pertaining to our fiduciary responsibilities;

·

competition for investment managers and professionals and our ability to retain our associates;

·

fluctuation in the value of our investment securities;

·

the terminable nature of our investment management contracts;

·

changes to the level or type of investment activity by our clients;

·

investment performance, in either relative or absolute terms;

·

changes in interest rates;

·

the adequacy of our allowance for credit losses;

·

weak economic conditions and global trade;

·

legislative changes or the adoption of tax reform policies;

·

external business disruptors in the financial services industry;

·

liquidity risks;

·

our ability to maintain a strong core deposit base or other low-cost funding sources;

·

continued positive interaction with and financial health of our referral sources;

3

·

retaining our largest trust clients;

·

our ability to achieve our strategic objectives;

·

competition from other banks, financial institutions and wealth and investment management firms;

·

our ability to implement our internal growth strategy and manage the risks associated with our anticipated growth;

·

the acquisition of other banks and financial services companies and integration risks and other unknown risks associated with acquisitions;

·

the accuracy of estimates and assumptions;

·

our ability to protect against and manage fraudulent activity, breaches of our information security, and cybersecurity attacks;

·

our reliance on communications, information, operating and financial control systems technology and related services from third-party service providers;

·

technological change;

·

our ability to attract and retain clients;

·

natural disasters;

·

new lines of business or new products and services;

·

regulation of the financial services industry;

·

legal and regulatory proceedings, investigations and inquiries, fines and sanctions;

·

limited trading volume and liquidity in the market for our common stock;

·

fluctuations in the market price of our common stock;

·

potential impairment of goodwill recorded on our balance sheet and possible requirements to recognize significant charges to earnings due to impairment of intangible assets;  

·

actual or anticipated issuances or sales of our common stock or preferred stock in the future;

·

the initiation and continuation of securities analysts coverage of the Company;

·

future issuances of debt securities;

·

our ability to manage our existing and future indebtedness;

·

available cash flows from the Bank; and

·

other factors that are discussed in “Item 1A - Risk Factors” in our Annual Report on Form 10-K.

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in our Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 21, 2019. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Accordingly, you should

4

not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.

 

5

PART I. FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

FIRST WESTERN FINANCIAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except share amounts)

 

 

 

 

 

 

 

 

 

June 30, 

 

December 31, 

 

    

2019

    

2018

 

 

 

 

 

 

ASSETS

 

 

 

 

  

Cash and cash equivalents:

 

 

  

 

 

  

Cash and due from banks

 

$

1,974

 

$

1,574

Interest-bearing deposits in other financial institutions

 

 

90,795

 

 

71,783

Total cash and cash equivalents

 

 

92,769

 

 

73,357

 

 

 

 

 

 

 

Available-for-sale securities

 

 

51,698

 

 

43,695

Correspondent bank stock, at cost

 

 

1,649

 

 

2,488

Mortgage loans held for sale

 

 

36,269

 

 

14,832

Loans, net of allowance of $7,575 and $7,451

 

 

931,820

 

 

886,515

Premises and equipment, net

 

 

5,683

 

 

6,100

Accrued interest receivable

 

 

3,184

 

 

2,844

Accounts receivable

 

 

4,718

 

 

4,492

Other receivables

 

 

872

 

 

1,391

Other real estate owned, net

 

 

658

 

 

658

Goodwill

 

 

23,239

 

 

24,811

Other intangible assets, net

 

 

88

 

 

402

Deferred tax assets, net

 

 

4,607

 

 

4,306

Company-owned life insurance

 

 

14,898

 

 

14,709

Other assets

 

 

18,313

 

 

3,724

Total assets

 

$

1,190,465

 

$

1,084,324

 

 

 

 

 

 

 

LIABILITIES

 

 

  

 

 

  

Deposits:

 

 

  

 

 

  

Noninterest-bearing

 

$

229,266

 

$

202,856

Interest-bearing

 

 

775,911

 

 

734,902

Total deposits

 

 

1,005,177

 

 

937,758

Borrowings:

 

 

  

 

 

  

Federal Home Loan Bank Topeka borrowings

 

 

36,060

 

 

15,000

Subordinated Notes

 

 

6,560

 

 

6,560

Accrued interest payable

 

 

274

 

 

231

Other liabilities

 

 

20,237

 

 

7,900

Total liabilities

 

 

1,068,308

 

 

967,449

 

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES

 

 

  

 

 

  

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

  

 

 

  

Preferred stock - no par value; 1,000,000 shares authorized; 0 issued and outstanding

 

 

 —

 

 

 —

Convertible preferred stock - no par value; 150,000 shares authorized; 0 shares issued and outstanding 

 

 

 —

 

 

 —

Common stock - no par value; 10,000,000 shares authorized; 7,983,866 and 7,968,420 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively

 

 

 —

 

 

 —

Additional paid-in capital

 

 

142,095

 

 

141,359

Accumulated deficit

 

 

(19,933)

 

 

(23,199)

Accumulated other comprehensive loss

 

 

(5)

 

 

(1,285)

Total shareholders’ equity

 

 

122,157

 

 

116,875

Total liabilities and shareholders’ equity

 

$

1,190,465

 

$

1,084,324

 

See accompanying notes to condensed consolidated financial statements.

6

FIRST WESTERN FINANCIAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 

 

 

Six Months Ended June 30, 

 

    

2019

    

2018

 

    

2019

    

2018

Interest and dividend income:

 

 

  

 

 

  

 

 

 

  

 

 

  

Loans, including fees

 

$

10,600

 

$

9,074

 

 

$

20,818

 

$

17,676

Investment securities

 

 

331

 

 

281

 

 

 

641

 

 

558

Federal funds sold and other

 

 

243

 

 

150

 

 

 

765

 

 

277

Total interest and dividend income

 

 

11,174

 

 

9,505

 

 

 

22,224

 

 

18,511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

  

 

 

  

 

 

 

  

 

 

  

Deposits

 

 

2,995

 

 

1,411

 

 

 

5,904

 

 

2,571

Other borrowed funds

 

 

219

 

 

517

 

 

 

389

 

 

1,003

Total interest expense

 

 

3,214

 

 

1,928

 

 

 

6,293

 

 

3,574

Net interest income

 

 

7,960

 

 

7,577

 

 

 

15,931

 

 

14,937

Less: (recovery of) provision  for  credit losses

 

 

(78)

 

 

 —

 

 

 

116

 

 

(187)

Net interest income, after (recovery of) provision for credit losses

 

 

8,038

 

 

7,577

 

 

 

15,815

 

 

15,124

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

  

 

 

  

 

 

 

  

 

 

  

Trust and investment management fees

 

 

4,693

 

 

4,689

 

 

 

9,363

 

 

9,643

Net gain on mortgage loans sold

 

 

3,262

 

 

1,359

 

 

 

4,718

 

 

2,610

Bank fees

 

 

341

 

 

455

 

 

 

630

 

 

1,065

Risk management and insurance fees

 

 

194

 

 

284

 

 

 

662

 

 

667

Income on company-owned life insurance

 

 

96

 

 

105

 

 

 

189

 

 

199

Total non-interest income

 

 

8,586

 

 

6,892

 

 

 

15,562

 

 

14,184

Total income before non-interest expense

 

 

16,624

 

 

14,469

 

 

 

31,377

 

 

29,308

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

  

 

 

  

 

 

 

  

 

 

  

Salaries and employee benefits

 

 

7,699

 

 

7,660

 

 

 

15,317

 

 

15,840

Occupancy and equipment

 

 

1,398

 

 

1,527

 

 

 

2,805

 

 

3,012

Professional services

 

 

1,036

 

 

1,008

 

 

 

1,813

 

 

1,832

Technology and information systems

 

 

1,016

 

 

1,000

 

 

 

2,085

 

 

2,063

Data processing

 

 

742

 

 

687

 

 

 

1,429

 

 

1,327

Marketing

 

 

441

 

 

316

 

 

 

719

 

 

601

Amortization of other intangible assets

 

 

142

 

 

230

 

 

 

315

 

 

460

Goodwill impairment

 

 

1,572

 

 

 —

 

 

 

1,572

 

 

 —

Other

 

 

613

 

 

656

 

 

 

1,206

 

 

1,235

Total non-interest expense

 

 

14,659

 

 

13,084

 

 

 

27,261

 

 

26,370

Income before income taxes

 

 

1,965

 

 

1,385

 

 

 

4,116

 

 

2,938

Income tax expense

 

 

561

 

 

337

 

 

 

1,085

 

 

704

Net income

 

 

1,404

 

 

1,048

 

 

 

3,031

 

 

2,234

Preferred stock dividends

 

 

 —

 

 

(562)

 

 

 

 —

 

 

(1,123)

Net income available to common shareholders

 

$

1,404

 

$

486

 

 

$

3,031

 

$

1,111

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.18

 

$

0.08

 

 

$

0.39

 

$

0.19

Diluted

 

$

0.18

 

$

0.08

 

 

$

0.39

 

$

0.19

 

See accompanying notes to condensed consolidated financial statements.

7

FIRST WESTERN FINANCIAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 

 

 

Six Months Ended June 30, 

 

    

2019

    

2018

 

    

2019

    

2018

Net income

 

$

1,404

 

$

1,048

 

 

$

3,031

 

$

2,234

Other comprehensive income (loss) items:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized gains (losses) on available-for-sale securities

 

 

981

 

 

(140)

 

 

 

2,043

 

 

(846)

    Income tax effects

 

 

(253)

 

 

192

 

 

 

(528)

 

 

173

Total other comprehensive income (loss)

 

 

728

 

 

52

 

 

 

1,515

 

 

(673)

Comprehensive income

 

$

2,132

 

$

1,100

 

 

$

4,546

 

$

1,561

 

See accompanying notes to condensed consolidated financial statements.

8

FIRST WESTERN FINANCIAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED)

(in thousands, except share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Shares

    

 

 

    

 

 

    

Accumulated

    

 

 

 

 

 

 

Convertible

 

 

 

Additional

 

 

 

 

Other

 

 

 

 

 

Preferred

 

Preferred

 

Common

 

Paid-In

 

Accumulated

 

Comprehensive

 

 

 

 

 

Stock

    

Stock

    

Stock

 

Capital

 

Deficit

 

Income (Loss)

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at April 1, 2018

 

20,868

 

41,000

 

5,900,698

 

$

132,520

 

$

(26,712)

 

$

(1,653)

 

$

104,155

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 —

 

 —

 

 —

 

 

 —

 

 

1,048

 

 

 —

 

 

1,048

Issuance of common stock, net of issuance costs

 

 —

 

 —

 

16,969

 

 

(181)

 

 

 —

 

 

 —

 

 

(181)

Reclassification on unrealized loss on equity securities

 

 —

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Other comprehensive loss, net of tax

 

 —

 

 —

 

 —

 

 

 —

 

 

 —

 

 

52

 

 

52

Stock-based compensation

 

 —

 

 —

 

 —

 

 

446

 

 

 —

 

 

 —

 

 

446

Preferred stock dividends

 

 —

 

 —

 

 —

 

 

 —

 

 

(562)

 

 

 —

 

 

(562)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2018

 

20,868

 

41,000

 

5,917,667

 

$

132,785

 

$

(26,226)

 

$

(1,601)

 

$

104,958

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at April 1, 2019

 

 —

 

 —

 

7,968,420

 

$

141,738

 

$

(21,337)

 

$

(733)

 

$

119,668

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 —

 

 —

 

 —

 

 

 —

 

 

1,404

 

 

 —

 

 

1,404

Settlement of share awards

 

 —

 

 —

 

15,446

 

 

(110)

 

 

 —

 

 

 —

 

 

(110)

Other comprehensive income, net of tax

 

 —

 

 —

 

 —

 

 

 —

 

 

 —

 

 

728

 

 

728

Stock-based compensation

 

 —

 

 —

 

 —

 

 

467

 

 

 —

 

 

 —

 

 

467

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2019

 

 —

 

 —

 

7,983,866

 

$

142,095

 

$

(19,933)

 

$

(5)

 

$

122,157

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2018

 

20,868

 

41,000

 

5,833,456

 

$

130,070

 

$

(27,296)

 

$

(928)

 

$

101,846

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 —

 

 —

 

 —

 

 

 —

 

 

2,234

 

 

 —

 

 

2,234

Issuance of common stock, net of issuance costs of $7

 

 —

 

 —

 

67,242

 

 

1,909

 

 

 —

 

 

 —

 

 

1,909

Reclassification on unrealized loss on equity securities

 

 —

 

 —

 

 —

 

 

 —

 

 

(41)

 

 

41

 

 

 —

Other comprehensive loss, net of tax

 

 —

 

 —

 

 —

 

 

 —

 

 

 —

 

 

(714)

 

 

(714)

Settlement of share awards

 

 —

 

 —

 

16,969

 

 

(181)

 

 

 —

 

 

 —

 

 

(181)

Stock-based compensation

 

 —

 

 —

 

 —

 

 

987

 

 

 —

 

 

 —

 

 

987

Preferred stock dividends

 

 —

 

 —

 

 —

 

 

 —

 

 

(1,123)

 

 

 —

 

 

(1,123)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2018

 

20,868

 

41,000

 

5,917,667

 

$

132,785

 

$

(26,226)

 

$

(1,601)

 

$

104,958

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2019

 

 —

 

 —

 

7,968,420

 

$

141,359

 

$

(23,199)

 

$

(1,285)

 

$

116,875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 —

 

 —

 

 —

 

 

 —

 

 

3,031

 

 

 —

 

 

3,031

Settlement of share awards

 

 —

 

 —

 

15,446

 

 

(110)

 

 

 —

 

 

 —

 

 

(110)

Adoption of ASU 2018-02 - Reclassification of stranded tax effect

 

 —

 

 —

 

 —

 

 

 —

 

 

235

 

 

(235)

 

 

 —

Other comprehensive income, net of tax

 

 —

 

 —

 

 —

 

 

 —

 

 

 —

 

 

1,515

 

 

1,515

Stock-based compensation

 

 —

 

 —

 

 —

 

 

846

 

 

 —

 

 

 —

 

 

846

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2019

 

 —

 

 —

 

7,983,866

 

$

142,095

 

$

(19,933)

 

$

(5)

 

$

122,157

 

See accompanying notes to condensed consolidated financial statements.

9

FIRST WESTERN FINANCIAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)

 

 

 

 

 

 

 

 

    

Six Months Ended June 30, 

 

 

2019

 

2018

Cash flows from operating activities

 

 

  

 

 

  

Net income

 

$

3,031

 

$

2,234

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

1,011