First Western(US:MYFW)2021-11-05 20:06Financial Performance - As of September 30, 2021, the company reported total assets of $2.08 billion and total revenues of $72.3 million[192]. - For the three months ended September 30, 2021, net income available to common shareholders was $6.4 million, a decrease of $3.2 million or 33.4% compared to the same period in 2020[214]. - The income before income tax for the three months ended September 30, 2021 was $8.5 million, a decrease of $4.4 million or 34.0% from the same period in 2020[214]. - For the nine months ended September 30, 2021, net income available to common shareholders was $18.7 million, a decrease of $1.0 million or 4.9% compared to the same period in 2020[215]. - For the nine months ended September 30, 2021, income before income tax was $24.7 million, a decrease of $1.3 million, or 4.9%, compared to the same period in 2020[216]. Asset Management - The company provided fiduciary and advisory services on $6.91 billion of assets under management (AUM) as of September 30, 2021[192]. - The ending balance of total assets under management was $6,906 million as of September 30, 2021, compared to $6,131 million for the same period in 2020[268]. - Assets under management increased by $143.8 million, or 2.1%, for the three months ended September 30, 2021, and increased by $650.6 million, or 10.4%, for the nine months ended September 30, 2021[271]. Income and Expenses - Net interest income increased by $3.0 million for the three months ended September 30, 2021, driven by a $1.7 million increase in interest income from loans[214]. - Non-interest income decreased by $7.5 million, or 41.8%, to $10.5 million for the three months ended September 30, 2021, primarily due to a $7.8 million decrease in net gain on mortgage loans[4]. - Non-interest income in Wealth Management grew by 5.1% to $6.0 million in Q3 2021, compared to $5.7 million in Q3 2020[255]. - Non-interest expense increased by $3.7 million, or 8.4%, to $47.6 million for the nine months ended September 30, 2021, primarily due to higher salaries and employee benefits[6]. Loan Performance - The company experienced a $7.8 million decrease in net gain on mortgage loans, primarily due to a slowdown in new lock volume associated with decreased refinance activity[214]. - The provision for loan losses recorded was $0.4 million for the nine months ended September 30, 2021[2]. - The allowance for loan losses at the end of the period was $12.964 million, up from $11.845 million in 2020, representing an increase of 9.4%[307]. - Total non-performing loans were $4.4 million as of September 30, 2021, with a non-performing loans to total loans ratio of 0.27%[296]. Capital and Equity - Total shareholders' equity increased by $20.2 million, or 13.0%, to $175.1 million as of September 30, 2021, primarily due to an increase in net income[266]. - The Bank's Tier 1 capital to risk-weighted assets ratio was 11.02% as of September 30, 2021, compared to 10.22% as of December 31, 2020[337]. - Total capital to risk-weighted assets ratio for the consolidated company was 14.37% as of September 30, 2021, up from 12.80% as of December 31, 2020[337]. Deposits and Borrowings - Total deposits increased by $162.4 million, or 10.0%, to $1.78 billion as of September 30, 2021, compared to December 31, 2020[314]. - Borrowings decreased by $76.3 million, or 43.9%, to $97.6 million as of September 30, 2021, attributed to a reduction in outstanding advances on the Federal Reserve's Paycheck Protection Program Loan Facility[265]. - Money market deposit accounts increased by $57.8 million, or 6.8%, to $905.2 million as of September 30, 2021, compared to December 31, 2020[264]. Economic Impact and Risk Management - The Company is closely monitoring the economic impact of COVID-19 on its loan portfolio, particularly in higher impacted industries[305]. - The Company continues to engage with clients in industries more affected by the pandemic, focusing on those with a greater than 50% probability of downgrade or covenant violation[290]. - The financial strength of the Company's clientele and the diversity of the portfolio continue to mitigate credit risk within the portfolio[3].