Q4 2023 First Western Financial Inc Earnings Call

January 26, 2024

Okay.

Speaker Change: Thank you for standing by and welcome to the first Western Financial Q4, 2023 earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session.

Speaker Change: I asked a question at that time. Please press star one on your telephone please be advised that today's call is being recorded.

Speaker Change: How much turn the call over to your host Tony Rossi with financial profiles. Please go ahead.

Tony Rossi: Thank you Valerie.

Tony Rossi: Morning, everyone and thank you for joining us today for first Western Financial's fourth quarter 2023 earnings call joining.

Tony Rossi: Joining us from first Western's management team are Scott Wylie, Chairman and Chief Executive Officer, Julie Core campus, Chief Operating Officer, David Weber, Chief Financial Officer.

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

If you've not done so already please visit the events and presentations page of first Western's Investor Relations website to download a copy of the presentation.

Tony Rossi: Before we begin I'd like to remind you that this conference call contains forward looking statements with.

Tony Rossi: With respect to the future performance and financial condition of first western financial that involve risks and uncertainties.

Tony Rossi: Various factors could cause actual results to be materially different from any future results expressed or implied by such forward. Looking statements. These factors are discussed in the company's SEC filings, which are available on the company's website.

Tony Rossi: I'd also direct you to read the disclaimers in our earnings release and Investor presentation. The company disclaims any obligation to update any forward looking statements made during the call.

Tony Rossi: Additionally, management may refer to non-GAAP measures, which are intended to supplement but not substitute for the most directly comparable GAAP measures. The press release available on the website contains the financial and other quantitative information to be discussed today as well as the reconciliation of the GAAP to non-GAAP measures and with that I'd like to turn the call over to Scott.

Thanks, Tony and good morning, everybody as we enter our 20th year in business centers.

Scott C. Wylie: As a public company. We believe we are well positioned for solid revenue and earnings gains in spite of the environmental challenges of 2023.

Scott C. Wylie: During the fourth quarter, we continued to execute on our strategic priorities.

Scott C. Wylie: Which included maintaining disciplined expense control, while focusing on new deposit relationships in order to increase our liquidity and put us in a better position to fund new loan production loan demand increases as economic conditions improve.

Scott C. Wylie: With our increased focus on deposit gathering we had 18% annualized growth in total deposits with increases in both noninterest bearing and interest bearing deposits and further lowered our loan to deposit ratio to achieve our year end target of a 100% as we remain conservative a new low.

Scott C. Wylie: Production, which kept our total loans relatively flat during the quarter.

Scott C. Wylie: As part of this effort, we made the strategic decision to add some short term higher cost deposits.

Had a near term impact on our net interest margin. We believe it was in the best interest best long term interest.

Scott C. Wylie: Is it enables us to have the funding to add new client relationships that we believe we can expand over time and be highly profitable for the company.

Scott C. Wylie: Given the short term nature of the deposits will be able to replay.

Place them.

Scott C. Wylie: With lower cost funding sources as market conditions normalize.

Scott C. Wylie: Interest rates decrease.

Scott C. Wylie: Our provision for credit losses increased clarity.

Scott C. Wylie: Largely due to reserve on individually Analysed loans, we established for the relationship that we put on non accrual in the prior quarter.

Scott C. Wylie: This provision resulted in a <unk>.

Scott C. Wylie: Lower level of net interest income for the quarter, while we still had $4 1 million and pretax pre provision net income.

Scott C. Wylie: As we're going through the workout process, where the relationships in nonperforming status.

Scott C. Wylie: We received.

Scott C. Wylie: Dated appraisals on the properties, we have as collateral which have all remained consistent with previous evaluations and in some cases have increased.

Scott C. Wylie: However in a couple of cases, we also have.

Scott C. Wylie: Collateral receivables and business valuations that we now believe that might not be fully collectible. So we established a reserve on individually analysed loans to reflect the possibility that we may not fully collect those receivables.

Scott C. Wylie: Consistent with what we said last quarter, we expect it will take a few quarters for these loans to be resolved and with the sale of multiple properties, we have as collateral.

Scott C. Wylie: Being on different timelines.

Scott C. Wylie: The experience we have consistently through the history of first western is it the strong underwriting criteria in collateral. We have has ultimately resulted in minimal or no losses on these loans.

As I indicated earlier, we continue to execute on our key strategic priorities, one of which was disciplined expense control.

At the beginning of 2023, we indicated we expected noninterest expense to be in the range of 20% to $21 million per quarter in 2023.

We finished the year with noninterest expense well below this level at just over $18 million. This.

Scott C. Wylie: This reflects our focus on improving efficiencies throughout the organization and reducing costs without impacting our business development capabilities or the level of service that we provide to our clients. We're continuing to look at all areas for opportunities to operate more efficiently.

Scott C. Wylie: Which not only reduces expenses, but also offset our investment in other areas.

Such as our technology platform that we believe will help enhance the long term value of our franchise.

Scott C. Wylie: Moving to slide four we generated net income.

Scott C. Wylie: Of <unk> 3 million or <unk> <unk> per diluted share in the fourth quarter.

We also saw a small decline in our tangible book value per share during the quarter, which was due to an unfavorable shift in OCI, resulting from a cash flow hedge.

Scott C. Wylie: Certain <unk> borrowings that decreased in value as the interest rates declined.

Scott C. Wylie: Last our tangible book value has increased 143% since our pre IPO levels of June 2018 as shown in the later slide.

Scott C. Wylie: Now I will turn the call over to Julie for some additional discussion of our balance sheet and trust investment management trends Julie Thank.

Julie Courkamp: Thank you Scott.

Julie: Turning to slide five we'll look at the trends in our loan portfolio.

Julie: Total loans increased $12 million from the end of the prior quarter. The increase was driven by growth in our residential mortgage and CRE portfolios, which was partially offset by small declines in our other portfolio.

Julie: We continue to be conservative and highly selected our new loan production focusing primarily on clients that also bring a full relationship increase above the.

Julie: Deposits and investment management to the bank.

Julie: This resulted in new loan production being about half of what it was in the prior quarter.

Julie: As Scott mentioned earlier helped us to bring our loan to deposit ratio in line with our year end target of 100% and much closer to our historic target of 90% to 95%.

Julie: <unk> is a key near term objective for the company.

Julie: And with the discipline, we are maintaining in our pricing criteria. The average rate on new production increased 35 basis points from the prior quarter to 827%.

Julie: And was 843% in the month of December.

Julie: Moving to slide six we'll take a closer look at our deposit trends.

Our total deposits increased by $109 million during the quarter with increases in both noninterest bearing and interest bearing deposits.

Julie: We continue to have success in new business development and added $118 million and new deposit relationships during the fourth quarter.

Julie: Noninterest bearing deposits increased $6 3 million during the fourth quarter reversing the trend of clients moving money out of noninterest bearing accounts into interest bearing accounts in order to get a higher yield on their excess liquidity.

Julie: And as Scott mentioned earlier, we made a strategic decision to add some short term higher cost deposits, which also contributed to the deposit growth in the quarter, but will be replaced with lower cost funding as market conditions normalize and interest rates decrease.

Julie: Turning to trust and investment management on slide seven.

Julie: We had a $357 million increase in our assets under management in the fourth quarter, primarily due to market performance.

Julie: We also had a $303 million and inflows.

From new and existing clients during the quarter.

Julie: However, this was offset by account closures and withdrawal.

The $646 million increase in <unk>.

Julie: Year over year was achieved in spite of our 10% fee increase we began implementing midyear.

Julie: Now I will turn the call over to David for further discussion of our financial results David.

Julie good morning, everyone.

David Weber: Turning to slide eight.

David Weber: We will look at our gross revenue or gross revenue declined two 7% from the prior quarter, primarily due to an increase in deposit costs that reduced our net interest income this.

This was the smallest decline that we've seen over these past five quarters as the environmental headwinds have abated.

Turning to slide nine we will look at the trends in our net interest income and margin.

David Weber: Our net interest income decreased two 6% due to a decline in our net interest margin.

David Weber: Our net interest margin decreased nine basis points to 237%.

David Weber: In line increase in interest bearing deposit costs offset partially by an increase in yields on average earning assets.

David Weber: As Scott indicated we made the strategic decision to add some short term higher cost deposits to increase our near term liquidity, which negatively impacted NIM in the fourth quarter.

David Weber: As market conditions normalize and interest rates decline, we will replace these deposits with lower cost funding that will be beneficial to earn them.

David Weber: Now turning to slide 10, our noninterest income remained flat compared to the prior quarter net.

David Weber: Net gain on mortgage loans was slightly lower which reflects.

David Weber: The seasonal impact of lower mortgage demand in the fourth quarter as well as the higher rate environment.

David Weber: We had a slight decline in trust and investment management fees compared to the prior quarter, however fees increased 8% year over year.

David Weber: These declines were partially offset by an increase in risk management and insurance fees, which are seasonally higher in the fourth quarter each year.

David Weber: Now turning to slide 11, and our expenses.

David Weber: Our noninterest expense was relatively consistent with the prior quarter as we continue to focus on disciplined expense control.

David Weber: Klein and our salaries and benefits expense in the fourth quarter, partially driven by the one time acquisition related compensation expense that was recognized in the prior quarter was offset by small increases in most other line items.

David Weber: It is a challenging environment to forecast.

David Weber: However, if we generate mid teens revenue growth in 2024, we expect our noninterest expense to range from 19, five to $20 5 million per quarter if.

David Weber: If we generate single digits revenue growth in 2024, we expect our noninterest expense to range from 18, five to $19 5 million per quarter.

David Weber: Now turning to slide 12, we'll look at our asset quality.

David Weber: On a broad basis, the loan portfolio continues to perform well as we had another quarter of minimal losses.

David Weber: This continues our 10 year history of near zero percent credit losses.

David Weber: We had a slight increase in nonperforming loans, which was attributable to two credits placed on nonperforming status in the quarter.

David Weber: We recorded a provision for credit losses of $3 9 million, which related to the reserve on individually analysed loans that Scott discussed earlier as well as reserves established for the two new credits that replaced on nonperforming status.

David Weber: The provision recorded this quarter combined with a modest level of loan growth increased our level of allowance to adjusted loans by 18 basis points to one 1% at December 31.

David Weber: Now I will turn it back to Scott Scott.

Scott C. Wylie: Thanks, David.

Scott C. Wylie: Turning to slide 13, we provided an update on our strong track record of value creation for shareholders.

Scott C. Wylie: This slide shows our trend in tangible book value per share since our IPO in 2018 and.

Scott C. Wylie: And the factors that have contributed to our consistent ability to drive.

Intangible book value per share as we've executed well on the plan that we communicated at the time of our IPO.

Scott C. Wylie: Following our fourth quarter performance, we've increased our tangible book value per share by 143% since our IPO, which includes the 56% decrease we had.

Scott C. Wylie: Due to the adoption of <unk> at the beginning of 2023 and.

Scott C. Wylie: In the fourth quarter included a negative impact due to the unfavorable shift in OCI, resulting from the cash flow hedge uncertain <unk> borrowings we mentioned earlier.

Scott C. Wylie: Yes.

Scott C. Wylie: We're very proud of this track record of value creation, and believe that we're well positioned to continue creating additional value for our shareholders in the future.

Scott C. Wylie: Yeah.

Scott C. Wylie: Turning to slide 14, I'll wrap up with some comments about our outlook and priorities for 2024.

Scott C. Wylie: There remains a high degree of uncertainty regarding the economic conditions, we will see in 2024, but we believe we are well positioned to perform well in any economic scenario that emergence this year.

Our strong balance sheet and conservative underwriting criteria should enable us to effectively manage through an economic downturn as we have throughout our history.

I'd like to reemphasize the point I made earlier, while we may see an increase in problem loans and non accrual loans and an economic downturn. Historically this has not resulted in a meaningful level of loss due to the strong collateral required in our underwriting.

Scott C. Wylie: And we would also expect to continue to have a level of net charge offs as well below the level experienced by the broader banking industry in a material economic downturn or recession.

Scott C. Wylie: Should the fed managed to keep us out of recession and affect a soft landing for the economy, our business development capabilities and unique value proposition will enable us to take advantage of strengthening economic conditions.

Scott C. Wylie: And an increase in loan demand.

Scott C. Wylie: At this point.

With economic conditions remaining uncertain at the start of the year, we will continue to prioritize prudent risk management.

Scott C. Wylie: And conservative underwriting criteria, which should result in a modest level of near term loan growth.

Scott C. Wylie: We have the ability to be nimble and quickly respond to changing market conditions and should economic conditions improve in loan demand increase we would expect to see a higher level of loan growth at that point.

Scott C. Wylie: As we look to our markets.

Scott C. Wylie: We believe the competitive environment has become more favorable for us as many banks have had to pull back from loan production due to capital constraints funding challenges <unk> credit concerns were able to maintain our disciplined pricing criteria and still add new relationships with fewer banks being as aggressive in pricing and structure.

Scott C. Wylie: In order to win business as we've seen in recent quarters.

Scott C. Wylie: As we've indicated deposit gathering is going to remain a top priority.

Scott C. Wylie: With an increased focus on targeting.

Scott C. Wylie: Deposit rich industries like nonprofits.

Scott C. Wylie: Homeowner associations.

Scott C. Wylie: We have a good deal of expertise in both of those areas throughout the company that we're now leveraging to a greater extent to add new clients that are good sources of low cost deposits.

Scott C. Wylie: Most importantly, our focus will remain in our core business and our core clients.

Scott C. Wylie: Type of clients provide good opportunities to expand relationships over time as they typically want and need the various products and services that we provide and they typically result in very low levels of credit losses.

This is where we built our franchise on and there are lots of still there's still lots of room to.

Scott C. Wylie: To grow by focusing on these types of clients.

Scott C. Wylie: While 2024, it will be a difficult year to forward forecast, we do see a number of catalysts that should contribute to earnings growth. This year.

Scott C. Wylie: Our core revenue sources of loan yields deposit costs <unk> of mortgages have survived the strains of 2023 and seem likely to have upside in 2024.

Scott C. Wylie: We have good momentum in business development that should lead to continued growth in our client roster and balance sheet.

Scott C. Wylie: We have a liability sensitive balance sheet and a good deal of deposits indexed to fed funds. So when we see expansion in our we should see expansion in our net income net interest margin as market conditions normalize and interest rates declined.

Scott C. Wylie: We also continue to be disciplined in our expense management, while we continue to get the benefit from leverage.

Scott C. Wylie: Leveraging past investments in technology talent and office expansion.

Scott C. Wylie: In the past year or so we've also made many process improvements throughout the organization that should lead to enhanced efficiencies as we continue to add scale.

Scott C. Wylie: We believe these catalysts should result in a higher level of earnings this year.

Scott C. Wylie: Even with a modest level of balance sheet growth.

And as always we'll continue to operate the company with a long term perspective, the strength of the franchise and the balance sheet, we've already built.

We believe we can continue to capitalize on the attractive markets that we operate in to consistently add new clients realize more operating leverage as we increase scale generating profitable growth and further enhance the value of our franchise.

Scott C. Wylie: In the future as we grow earnings and create value for shareholders. The improved currency will have from higher stock price will enable us to execute on additional M&A transactions that we believe will enhance shareholder value just as our past transactions have done.

Speaker Change: With that we're happy to take your questions.

Speaker Change: So Barry go ahead and open up the call. Please. Thank you again, ladies and gentlemen, if you'd like to ask a question. Please press star one on your telephone again to ask a question. Please press star One line one moment. Please for our first question.

Barry: Our first question comes from the line of Brett Robertson.

Brett D. Rabatin: Your line is open.

Brett D. Rabatin: Hey, good morning, everyone. Good morning, Brett.

Brett D. Rabatin: Wanted just to start off on credit.

Brett D. Rabatin: <unk>.

Brett D. Rabatin: Can you talk a little bit about a $3 9 million that you added this quarter was.

Brett D. Rabatin: Can you talk a little bit about.

Brett D. Rabatin: Kind of what led to those moving into non accrual.

Brett D. Rabatin: Anything you are seeing any particular industries.

Brett D. Rabatin:

You're asking about the credit you're asking about.

Brett D. Rabatin: Credit trends across the platform.

I'm just asking about those two loans that I think are $3 9 million.

Brett D. Rabatin: What led to that.

Speaker Change: Yes sure.

Speaker Change: So.

Speaker Change: One was a relatively small commercial loan and the other was a construction loan that has substantial equity in it.

Speaker Change: Recent valuation of collateral showed it was well in excess of alone.

Speaker Change: Both of those were downgraded for very specific reasons related to borrowers and they arent indicative of broader trends that we're seeing in the portfolio.

Speaker Change: This is reflective of what we've seen throughout our history, which is you don't sometimes loans go into nonperforming status and they rarely results in a meaningful level of loss.

Speaker Change: Due to where underwriting standards and our strong collateral and the multiple sources of repayment that we require.

Speaker Change: Okay.

Speaker Change: And then on the.

<unk>.

<unk> loans that you moved to non accrual last quarter that are related for $42 million.

Speaker Change: How much of the $3 9 million provision was specifically related to.

Speaker Change: To those and then any.

Speaker Change: Any color on how much of that relationship I know, there's a commercial loan.

Speaker Change: Commercial owner occupied commercial real estate loans residential mortgage.

Speaker Change: I think our personal line of credit and how much would be.

<unk>.

Speaker Change: Powered by real estate.

Speaker Change: I think our starting point on that has to be that.

Speaker Change: That relationship is.

Speaker Change: Currently the subject of ongoing litigation.

Speaker Change: Which is out in the public realm through the courts.

Speaker Change: And because of that we shouldnt provide any additional detail.

Speaker Change: I think specifically on the question of the reserve this quarter, we put up it was substantially related to that relationship.

Speaker Change: And we think that the provision that we recorded as prudent and conservative based on everything we know as of now.

Speaker Change: We do continue to believe we have.

Speaker Change: Have adequate collateral and I mentioned that we've been working on updated appraisals and all the appraisals have held up including some that have increased significantly.

Speaker Change: Significantly in a couple of cases.

Speaker Change: Okay, Yeah, Pablo litigation Thats somewhat unusual.

Speaker Change: And then maybe just for clarity on the margin and kind of the pace from here.

Speaker Change: You referenced that you used some shorter term funding sources.

Speaker Change: This quarter.

Speaker Change: Can you maybe talk about just how you see the margin progressing in 'twenty four.

Speaker Change: And then just for <unk>.

Speaker Change: The fed's cutting 25 100 basis points what.

Speaker Change: What rate cuts would mean to the margin as you said.

Speaker Change: Yeah, Let me take a stab at that David and then if you want to jump in and.

David Weber: Provide more breadth you want more.

Just to ask but.

David Weber: <unk>.

Speaker Change: As I look at NIM as a starting point.

Speaker Change: And look for kind of a trend.

Speaker Change: And a bottoming out.

Speaker Change: I would tell you our last three months.

Speaker Change: We're apples to apples $2 50.

Speaker Change: October $2 35 November two 2006 December.

Speaker Change: We were anticipating $2 33 for January and that seems to be about where we are.

Speaker Change: $2 35 in February and $2 43 in February and March are kind of our internal.

Speaker Change: Forecast again, who knows.

Speaker Change: As we talked about several times in our comments.

Overall.

Speaker Change: The bank is liability sensitive we historically have tried to operate with a balanced balance sheet from an alco perspective, but right now we are significantly liability sensitive.

Speaker Change: So.

Speaker Change: Our estimate.

Speaker Change: And.

Speaker Change: Sort of unprecedented conditions that we're in today is 25 basis point decline would produce something like $1 million.

Speaker Change: Annualized.

Speaker Change: Earnings improvement revenue and earnings improvement.

Speaker Change: So those would be.

Speaker Change: And the two data points I would point to from.

Speaker Change: But we think we know today.

Speaker Change: David.

David Weber: Yes that totally good start yes.

David Weber: Okay.

Speaker Change: Very helpful. Yeah. That's that's really helpful. I've got other questions, but I'll hop back in the queue. Thanks, so much yes.

Speaker Change: Yes. Thank you. Thank you one moment please.

Speaker Change: Our next question comes from the line of Brady Gailey of <unk>. Your line is open.

Brady Gailey: Hey, Thanks, Good morning, guys good.

Brady Gailey: Good morning Brady.

Brady Gailey: One more just on the reserve build I mean, taking the reserve up.

Brady Gailey: 18 basis points in a quarter is pretty notable it sounds like that's driven by.

Brady Gailey: A specific reserve on this credit that were litigation is involved is that correct.

Speaker Change: That is correct.

Speaker Change: Okay.

Speaker Change: I know you don't want to talk much about it just a fact sonics.

Bill.

Speaker Change: Is that loan and what type of loan.

Speaker Change: Where the litigation is in bulk.

Speaker Change: The relationship which includes a number of loans.

As a.

Speaker Change: A total of $53 million and we participated out $11 million of debt. So on our books is $42 million.

Speaker Change: Okay.

Speaker Change: The composition of those loans first.

Speaker Change: First of all.

Speaker Change: The composition of the loans.

Speaker Change: Yes, the several loans that make up the $42 million that's on your balance sheet.

Speaker Change: C&I CRE.

Speaker Change: Their commercial loans that are secured with.

Speaker Change: All of that real estate collateral that we've talked about in the past.

Speaker Change: Okay.

Speaker Change: Alright, and then Scott I heard you say you are expecting a modest level of loan growth. This year I mean should we interpret that.

Speaker Change: <unk>.

Speaker Change: Low single digits or could it be better than that.

Scott C. Wylie: Let me check my Crystal ball here.

Speaker Change: I can take that.

For us.

Speaker Change: We don't think 2023.

Speaker Change: We're hoping.

Speaker Change: <unk> is not another 2023.

Speaker Change: No.

Speaker Change: We have historically.

Speaker Change: Found lots of opportunities to grow our types of loans with our types of clients.

Speaker Change: Across our 19 offices and <unk>.

Speaker Change: I think that will be the future for us.

Speaker Change: Im not sure if that plays out entirely in 2020 for one of the things we were thinking about in 2023.

We had a 114 basis point loan to deposit ratio in October of 2022, and this is really hard to grow loans when youre not sure.

Speaker Change: Where your deposit growth is going to come from the support that.

Speaker Change: So a lot of our thinking in 2023 was let's grow low deposits I mean back to.

Speaker Change: Get our loan to deposit ratio down where we have historically run it which is kind of 90% to 95% and I think what we've talked about on these calls is we would like to get that down to 100% by year end 2023, which we did so.

Speaker Change: I think we were in a little bit of a chicken and egg problem in 2023, where we're saying, we're not really going to grow loans.

Speaker Change: If we don't have the deposits to support it in house and.

Speaker Change: So let's focus on getting deposits in house the.

Speaker Change: The other side of that though.

Speaker Change: In the past I've seen you know if you kind of shut off the loans they get it's hard to turn it back on so you know we've tried to be mindful of that with our relationship bankers.

Speaker Change: And you will support loan requests for <unk>.

Speaker Change: Loans that do fit well into our credit.

Approach and our strategy and our type of client and whatnot. So.

Speaker Change: So long way around of saying, we're planning on kind of mid single digit loan growth.

Speaker Change: In 2024, because we don't know.

And.

For us that drives.

Speaker Change: Our guesstimate of mid teen revenue growth.

Speaker Change: And if we can do what David was saying in terms of.

Speaker Change: Managing our operating expenses, which is.

Speaker Change: If we grow mid teen revenue growth than maybe $20 million or so in operating expenses per quarter. If we did.

Speaker Change:

Speaker Change: Mid single digit revenue growth.

Speaker Change: Maybe $19 million in the quarter.

Speaker Change: Operating expense I mean, that's kind of how we're thinking about at Brady and I know thats, not a very satisfying answer but thats.

Speaker Change: I think the best you can do given the.

The environment we're in.

Speaker Change: No I understand that's very helpful. Thank you guys.

Speaker Change: Thank you one moment please.

Speaker Change: Our next question comes from the line of Adam Butler of Piper Sandler Your line is open.

Adam Butler: Hey, good morning, everybody. This is Adam on for Matthew Clark.

Adam Butler: If I could just touch touch on the deposit side first you guys had nice deposit growth during the quarter and it looks like the majority of it was based on time deposit growth.

Adam Butler: I was just curious if you could touch on the nature of that growth in <unk>.

Adam Butler: The maturity of those deposits and what you put them on it.

Speaker Change: Yes, Adam just before we address at this one more point I would like to make about Brady's question.

Speaker Change: Which I think was obvious but in case it wasn't I would just.

Follow through and make the point I think that the more important measure for me of all those things I said.

Speaker Change: Is what is the run rate EPS and what's happening there and I think our core EPS run rate would improve.

Speaker Change: Significantly with those conditions I described with 15% ish revenue growth and the expense growth, we talked about and gets us by the end of the year in two way earnings position well above where we were in 'twenty two 'twenty three on a run rate basis. So I just think.

Speaker Change: That's an important conclusion.

Brady of what.

Speaker Change: You specifically asked about so.

Speaker Change: Sorry to take a detour there Adam but let's go to your question about.

Speaker Change: Deposits.

Speaker Change: And.

Speaker Change: I think.

Speaker Change: But the increase that we put on in deposits in the fourth quarter. Some of them were noninterest bearing we actually grew DDA I think for the first time in a year so that felt good.

Speaker Change: Of the Cds I think we added about.

Speaker Change: $49 million in three months deposits 45 million and six months deposits of $7 million a nine month deposits.

Speaker Change: During Q4, so those would rollover.

Speaker Change: Roll off over the course of.

Speaker Change: The year and give us the opportunity to reprice those.

Speaker Change: As we've talked about either.

Speaker Change: Because rates are falling.

Markets are normalizing and we talked about that.

Speaker Change: Several times in our comments because historically, we have been able to grow.

Kind of core deposits with clients pretty effectively.

Speaker Change:

Speaker Change: For example, as we've tripled the balance sheet since our IPO.

Speaker Change: And I just think that 2023 was this abnormal environment.

Speaker Change: I don't think it's going to continue forever may continue some into 2024, but I don't think thats going to continue forever. So.

Speaker Change: Do expect we will have the opportunity to.

Speaker Change: Refi refinance those higher cost deposits.

Speaker Change: As they roll off in 'twenty four.

Speaker Change: Okay I appreciate the color there.

Speaker Change: I failed to mentioned the increase in non interest bearing but I was I was getting there. It was it was nice to see that too and I was just going to just looking at overall deposit flows.

Speaker Change: I was given your guide for potentially mid single digit loan growth that you're thinking kind of.

Speaker Change: The same in deposit growth and keeping that loan to deposit near that 100% Ranger has.

Speaker Change: Pat.

Speaker Change: Yeah.

Interviewer: That guidance changed on your end.

Interviewer: Thanks.

Pat: No I think we would like to see it trend over time back to our historic numbers in the low to mid nineties.

Pat: That's where we feel comfortable.

Speaker Change: I would tell you.

Speaker Change: Another data point.

Speaker Change: That helps.

Speaker Change: Argument or our hope that we bottomed out on NIM is a spot rate for deposits.

Speaker Change: Yes, $3 31.

Speaker Change: Was.

Speaker Change: Was December.

Speaker Change: At December 31st I mean.

Speaker Change: It was three.

Speaker Change: <unk>, 331%.

Speaker Change: So we're seeing that.

Speaker Change: The increase of moderate as we go through.

Speaker Change: The fourth quarter.

Speaker Change: Okay, that's great that's great to see.

Speaker Change: Those were my questions I appreciate the time thanks.

Speaker Change: Yes, Thank you Adam.

Speaker Change: Thank you one moment please.

Speaker Change: Okay.

Our next question comes from the line of Bill <unk> of cash.

Bill: Capital Management your line is open.

Bill: Pardon me that building Alan Yes, Youre line is open.

Bill: Okay. Thank you. So two questions first of all relative to a comment that you made in the press release are you seeing an increase in loan demand.

Bill: Now where it was the same press release simply trying to relay that you are ready when that does happen.

Alan: Yes, I am not sure Bill I think are.

Alan:

Alan: Loan demand.

Alan: <unk> came down from our type of borrowers when rates spiked and I think people have come back some.

Alan: And so in that sense, its probably improved.

Our pipelines.

Alan: At the end of Q4 are actually down from the end of Q3, but I think some of that is this kind of pressure we put on our relationship bankers to focus on deposits.

Over straight up loans.

Alan: Also think.

Alan: Yeah, we saw let's say a year ago, probably six months ago.

Alan: Banks doing kind of unreasonable.

Alan: Loan terms and rates and I would say, we see a lot less of that now although in January we have heard a couple of anecdotes about kind of pricing that we would never do.

Alan: I assume that some of these banks that are looking to grow in our markets that are assuming that we're going to see big fed rate cuts and rates come down and that they are.

Alan: Lower oil prices are going to make sense, but the others.

A number of dynamics in place there my.

Alan: My underlying conclusion from all of that is we have tiny market share in all of our markets and we're in a lot of really attractive growth markets and so I think to the extent, we want to grow loans were going to be able to grow loans and I think some number in the mid single digits.

Alan: Seems very achievable to me for this year.

Speaker Change: Okay. That's helpful and maybe you may have just answered my follow up question to that is as you think about running the bank debt.

Speaker Change: That you probably have seen year loan pipeline decrease really because thats, a directive or initiatives that you've had in place to focus on deposits does that lead you to.

Speaker Change: Change anything in terms of.

Speaker Change: The direction is you're asking bankers to go.

Speaker Change: Or are you still on the same holding pattern that maybe you would have been.

Speaker Change: Last quarter.

Speaker Change: No I felt like we were in a little bit of a chicken and egg problem in Q3 were.

Speaker Change: We're telling our bankers to focus on relationships that bring deposits and loans, but don't lead with loans.

And frankly, a lot of times the ratio. If you want you to lead with loans and you bring deposits with it and so.

Speaker Change: By getting our loan deposit ratio down to 100, I feel like that frees us up out of the chicken and egg problem and we can go out and focus on the.

Speaker Change: The kind of relationships that we want.

Speaker Change: I would tell you also though I feel like.

Speaker Change:

Speaker Change: This second half of the year 'twenty three gave us an opportunity to really talk to our people about.

Our type of client.

Speaker Change: And focusing on those kind of people that we can really do.

Speaker Change: Our range of services for I mean I was in a.

Speaker Change: New business call last week.

Speaker Change: There we met with this couple that had a business in.

Speaker Change: And.

Speaker Change: They're just going to benefit from all the different things, we do and if you look at our top 10 clients in any office. Its the same story in every one of them, where they have six or eight or 10 products with us.

And so I think just really helping our people focus on our type of client with our types of credits in our types of relationships that include.

Speaker Change: Deposits loan Treasury management.

Speaker Change: Risk management.

Speaker Change: Planning Trust and investment management succession planning, all that kind of stuff and that's what we're really good at and Thats I think where we've had the operating refocus people.

Speaker Change: That will benefit us in 2024, I think that that'll be a good thing for us.

Speaker Change: Great. Thank you Scott and then I am going to ask one question relative to the large borrower.

That.

Speaker Change: Went back last into Q3.

You mentioned that you put provision in place on some of those loans. So my question is if you were to.

Speaker Change: Yes.

Speaker Change: If you were to have more success.

Speaker Change: Say if.

Speaker Change: If you took a took alone over and sold it at a premium that would also apply to.

Okay.

Speaker Change: To offset.

Speaker Change: These other loans that you may come in a bit under is that correct or is there.

Speaker Change: Secondarily is there any cross.

Speaker Change: Reciprocity between the loans as collateral that that comes into play that could make your reserving our provisioning.

Speaker Change: <unk> it that way.

Speaker Change: Yes, with the litigation I wanted to be really careful what we say here, but if the question is are the loans Clark Cross collateralize the answer to that is yes.

Speaker Change: Great I'll leave it at that and keep keep it easy for you. Thank you.

Speaker Change: Thank you Bill.

Speaker Change: Thank you one moment please.

Speaker Change: Our next question comes from the line of Brett <unk> of Hardie Group. Your line is open.

Brett D. Rabatin: Hey, just a couple of follow ups.

Brett D. Rabatin: I guess first.

Brett D. Rabatin: I hear correct on the on the expenses.

Brett D. Rabatin: You have mid teen revenue growth guidance is.

Brett D. Rabatin: 19, 5% to 25 and if it's single digit then it's 18 five to $19 five kind of quarterly pace was that those the right numbers correct Yep.

Brett D. Rabatin: Okay.

Speaker Change: Does that mean that the difference would be kind of the bonus or incentive comp, but the folks we get for.

Speaker Change: For hitting certain targets.

Speaker Change: Can you talk a little bit more about that.

Speaker Change: Sure Jason.

Speaker Change: The vast majority of it is incentive comp accrual related yes.

Speaker Change: Okay.

And then.

Speaker Change: Scott if I think about mortgage.

Speaker Change: Obviously.

Speaker Change: It's tough to know what rates do but it feels like people are getting more used to hire more.

Speaker Change: Mortgage rates.

Speaker Change: I was just.

Speaker Change: Thinking about the mortgage production from year in potential revenue in 'twenty four I know, it's I know, it's tough to predict but.

I would assume that we'd see a meaningful pickup in activity and income related to that as we get into the second quarter is that fair or do you see kind of the challenges remaining from our production in overall revenue for that piece of the business.

Speaker Change: So we come in every morning, and hope for an uptick in.

Speaker Change: Part of it of course.

Speaker Change: Remember in January which are slow months, but you wont address that Julie.

Julie: Alex kind of day, we're hoping for an uptick we're planning for an uptick but it will continue to be challenging regardless.

Julie: In addition to the rate environment.

Julie: The supply is still kind of low in our core markets as well.

Julie: We're working very hard to find new production avenues. So no new MLR is we've been adding those over the course of the last couple of quarters have some good ones in the pipeline.

Julie: That's another way we're looking at are the major way and we're looking at increasing our production, but I think we foresee it can be a bit of a challenge for the next several months and are hoping for.

Julie: Seasonality coming into the spring and summer months as well as rate environment.

Julie: Movement and.

Julie: Omar sentiment frankly, changing a little bit.

Julie: Can you give us a little bit of that base into the summer and polymer.

Julie: We are seeing.

House prices flat to coming down in our higher end markets and we're seeing.

Julie: The time on market extend so all that stuff.

Julie: Sounds like late cycle.

Julie: Recovery potential.

Julie: See rates come down and.

Julie: And of course, you don't mortgage rates are generally tied more to.

Julie: The bond rally that we've seen over last six months and fed funds. So.

Julie: You could imagine a better year this year for mortgages.

Julie: And what we saw last year, which was pretty hideous and then I would tell you we.

Julie: Continue to rationalize expenses in that area.

Julie: As possible and.

Julie: Sure resources.

Julie: These are things that we can do to keep managing expenses as well.

Julie: Some of the people out to other areas that sort of thing, but I'm trying to cut our production capability.

Julie: Okay.

And maybe just one last one in your prepared commentary Scott you talked about M&A and I guess I was.

Speaker Change: A little surprised just kind of given where the stock is it would seem like that would be that'd be tougher I kind of thought you might talk more about maybe share repurchases and M&A, but any additional color around M&A and just are you haven't.

Speaker Change: Discussions with folks what what what do you think is the outlook for you guys from an M&A perspective, I know you've been.

Speaker Change: <unk> in the past.

Speaker Change: Yes, so what works well for us is CT shifts that lead to.

Speaker Change: Partnerships.

Speaker Change: And so the fact that our stock.

Is it 80% or so of tangible book value I mean, we don't believe that.

Speaker Change: Is it.

It makes sense and that's not really where it is going to be with $33.

Year, and a half ago. So I do think if we can show.

Speaker Change: Demonstrates some of the things we've been talking about on this call today that.

Speaker Change: There is some upside there and then what was the core chips are proceeding that.

Speaker Change: That would give us the.

Speaker Change: Currency that we would want to do.

And M&A, but we're not.

We're always looking and we're opportunistic we're working on relationships, but we're going to be conservative and disciplined your comment is absolutely right, we're not going to do anything.

Speaker Change: With our stock.

<unk> I don't think in our 17 wherever it is now.

Speaker Change: Yes.

Speaker Change: Does that mean, we shouldnt keep working on it.

Speaker Change: Okay.

Speaker Change: Fair enough I appreciate all the color. Thanks.

Speaker Change: Thank you I'm showing no further questions at this time I'd like to turn the call back over to Scott Wallace for any closing remarks.

Speaker Change: Yes.

Well, Thank you again valley.

Scott Wallace: I would just like to wrap up with.

Scott Wallace: Some overall comments from our conversation today, you know our focus on client relationships got us through 2023 with positive earnings with deposit growth loan growth increased tangible book value per share in spite of the seasonal negative impact on tangible book value.

Scott Wallace: We reduced our operating expenses.

We reduced our loan to deposit ratio from a peak of $1 14.

Scott Wallace: Down to in 2022 down to.

Scott Wallace: Just over 100% at year end.

Our NIM appears to have bottomed out our AUM showed some nice growth our capital ratios improved.

Scott Wallace: Our increased NPL should work out in 2024, as we continued our 40 quarter streak of essentially zero percent.

Scott Wallace: Charge offs last year.

Scott Wallace: With 2023 behind us and entering our 20th year.

Scott Wallace: In 2024 here, we opened the doors, yes March 17th of.

Scott Wallace: 24.

Scott Wallace: We're cautiously optimistic about our ability to grow revenues and therefore earnings nicely in 2024 and beyond we are.

Scott Wallace: Field at relatively modest asset growth with improved margins and improved fees can once again deliver the kind of strong operating leverage that we've seen since our 2018 IPO.

Speaker Change: I really appreciate everybody, taking the time to dial in and speak with US. This morning, we sure appreciate the support for first western have a great day.

Speaker Change: Thank you ladies and gentlemen, this does conclude today's conference. Thank you all participating you may now disconnect have a great day.

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Speaker Change: To ask a question at that time. Please press star one on your telephone please be advised today's call is being recorded.

Speaker Change: At this time I will turn the call over to your host Tony Rossi with financial profiles. Please go ahead.

Tony Rossi: Thank you Valerie good.

Tony Rossi: Good morning, everyone and thank you for joining us today for first Western Financial's fourth quarter 2023 earnings call.

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

Tony Rossi: We have not done so already please visit the events and presentations page of first Western's Investor Relations website to download a copy of the presentation.

Tony Rossi: Before we begin I'd like to remind you that this conference call contains forward looking statements with.

Tony Rossi: With respect to the future performance and financial condition of first western financial that involve risks and uncertainties.

Tony Rossi: Various factors could cause actual results to be materially different from any future results expressed or implied by such forward looking statements.

These factors are discussed in the company's SEC filings, which are available on the company's website.

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

Tony Rossi: Additionally, management may refer to non-GAAP measures, which are intended to supplement but not substitute for the most directly comparable GAAP measures. The press release available on the website contains the financial and other quantitative information to be discussed today as well as the reconciliation of the GAAP to non-GAAP measures with that I would like to turn the call over to Scott.

Scott: Thanks, Tony and good morning, everybody as we enter 2000 <unk> year in business and our sixth as a public company. We believe we are well positioned for solid revenue and earnings gains in spite of the environmental challenges of 2023.

Scott: During the fourth quarter, we continued to execute on our strategic priorities, which included maintaining disciplined expense control, while focusing on new deposit relationships in order to increase our liquidity and put us in a better position to fund new loan production loan demand increases as economic conditions improve.

Scott: With our increased focus on deposit gathering we had 18% annualized growth in total deposits with increases in both noninterest bearing and interest bearing deposits and further lowered our loan to deposit ratio to achieve our year end target of a 100% if we remain conservative.

Scott: New loan production, which kept our total loans relatively flat during the quarter.

Scott: As part of this effort, we made the strategic decision to add some short term higher cost deposits.

Scott: While this had a near term impact on our net interest margin. We believe it was in the best interest best long term interest.

Scott: Is it enables us to have the funding to add new client relationships that we believe we can expand over time.

Scott: Highly profitable for the company.

Scott: Given the short term nature of the deposits will be able to replay replace them with.

With lower cost funding sources as market conditions normalize and interest rates decrease.

Scott: Our provision for credit losses increased.

Scott: Largely due to reserve on individually Analysed loans, we established for the relationship that we put on non accrual in the prior quarter.

Scott: This provision resulted in a lower level of net interest income for the quarter, while we still had $4 1 million and pretax pre provision net income.

Scott: As we're going through the workout process, where the relationships in nonperforming status.

Scott: We received.

Scott: Dated appraisals on the properties, we have as collateral which have all remained consistent with previous evaluations and in some cases have increased.

Scott: However in a couple of cases, we also have <unk>.

Scott: Collateral receivables and business valuations that we now believe that might not be fully collectible. So we established a reserve on individually analysed loans to reflect the possibility that we may not fully collect those receivables.

Scott: Consistent with what we said last quarter, we expect it will take a few quarters for these loans to be resolved and with the sale of multiple properties, we have as collateral.

Scott: Being on different timelines.

Scott: The experience we have consistently through the history of first western is it the strong underwriting criteria in collateral. We have has ultimately resulted in minimal or no losses on these loans.

Scott: As I indicated earlier, we continue to execute on our key strategic priorities, one of which was disciplined expense control.

Scott: At the beginning of 2023, we indicated we expected noninterest expense to be in the range of 20% to $21 million per quarter in 2023.

Scott: We finished the year with noninterest expense well below this level at just over $18 million.

Scott: This reflects our focus on improving efficiencies throughout the organization and reducing costs without impacting our business development capabilities or the level of service that we provide to our clients. We're continuing to look at all areas for opportunities to operate more efficiently, which not only reduces expenses, but also et cetera.

Scott: Investment in other areas.

Scott: Such as our technology platform that we believe will help enhance the long term value of our franchise.

Scott: Moving to slide four we generated net income.

Scott: Of <unk> 3 million or <unk> <unk> per diluted share in the fourth quarter.

Scott: We also saw a small decline in our tangible book value per share during the quarter, which was due to an unfavorable shift in OCI, resulting from a cash flow hedge.

Scott: Certain <unk> borrowings that decreased in value as the interest rates declined.

Scott: Last our tangible book value has increased 143% since our pre IPO levels of June 2018 is shown in a later slide.

Scott: Now I will turn the call over to Julie for some additional discussion of our balance sheet and trust investment management trends Julie Thank.

Julie: Thank you Scott.

Julie: Turning to slide five we'll look at the trends in our loan portfolio.

Julie: We continue to be conservative and highly selected our new loan production focusing primarily on clients that also bring a full relationship increased deposits.

Julie: Deposits and investment Management, Inc.

Julie: This resulted in new loan production being about half of what it was in the prior quarter.

Julie: As Scott mentioned earlier helped us to bring our loan to deposit ratio in line with our year end target of 100% and much closer to our historic target of 90% to 95%.

Julie: Do you think key near term objective for the company.

Julie: And with the discipline, we are maintaining in our pricing criteria. The average rate on new production increased 35 basis points from the prior quarter to $8 two 7%.

Julie: <unk>, 843% in the month of December.

Julie: Moving to slide six we'll take a closer look at our deposit trend.

Julie: Our total deposits increased by $109 million during the quarter with increases in both non interest bearing and interest bearing deposits.

Julie: We continue to have success in new business development and added $118 million and new deposit relationships during the fourth quarter.

Julie: Turning to trust and investment management on slide seven.

Julie: We had a $357 million increase in our assets under management in the fourth quarter, primarily due to market performance.

Julie: We also had a $303 million and inflows.

Julie: From new and existing clients during the quarter. However.

Julie: However, this was offset by account closures and withdrawal.

$646 million increase in year over year was achieved in spite of a 10% increase we began implementing midyear.

Julie: Now I will turn the call over to David for further discussion of our financial results David.

David Weber: Thank you Julie good morning, everyone.

David Weber: Turning to slide eight we'll look at our gross revenue our gross revenue declined two 7% from the prior quarter, primarily due to an increase in deposit costs that reduced our net interest income.

David Weber: This was the smallest decline that we've seen over these past five quarters as the environmental headwinds have abated.

David Weber: Turning to slide nine we will look at the trends in our net interest income and margin.

David Weber: Our net interest income decreased two 6% due to a decline in our net interest margin.

David Weber: Our net interest margin decreased nine basis points to 237% driven by an increase in interest bearing deposit costs offset partially by an increase in yields on average earning assets.

David Weber: As market conditions normalize and interest rates decline, we will replace these deposits with lower cost funding that will be beneficial to our NIM.

David Weber: Now turning to slide 10, our noninterest income remained flat compared to the prior quarter net.

David Weber: Net gain on mortgage loans was slightly lower which reflects.

The seasonal impact of lower mortgage demand in the fourth quarter as well as the higher rate environment.

We had a slight decline in trust and investment management fees compared to the prior quarter.

David Weber: However fees increased 8% year over year.

David Weber: These declines were partially offset by an increase in risk management and insurance fees, which are seasonally higher in the fourth quarter each year.

David Weber: Now turning to slide 11, and our expenses.

David Weber: Our noninterest expense was relatively consistent with the prior quarter as we continue to focus on disciplined expense control.

David Weber: It is a challenging environment to forecast that.

David Weber: However, if we generate mid teens revenue growth in 2024, we expect our noninterest expense to range from 19, five to $20 5 million per quarter if.

David Weber: If we generate single digits revenue growth in 2024, we expect our noninterest expense to range from 18, five to $19 5 million per quarter.

David Weber: Now turning to slide 12, we will look at our asset quality.

David Weber: On a broad basis, the loan portfolio continues to perform well as we had another quarter of minimal losses.

David Weber: This continues our 10 year history of near zero percent credit losses.

David Weber: You had a slight increase in nonperforming loans, which was attributable to two credits placed on nonperforming status in the quarter.

David Weber: The provision recorded this quarter combined with a modest level of loan growth increased our level of allowance to adjusted loans by 18 basis points to one 1% at December 31.

David Weber: Now I will turn it back to Scott Scott.

Scott: Thanks, David.

Turning to slide 13, we provided an update on our strong track record of value creation for shareholders. This slide shows our trend in tangible book value per share since our IPO in 2018.

Scott: And the factors that have contributed to our consistent ability to drive.

Scott: And tangible book value per share as we've executed well on the plan that we communicated at the time of our IPO.

Scott: Following our fourth quarter performance, we've increased our tangible book value per share by 143% since our IPO, which includes the 56% decrease we had.

Scott: Due to the adoption of <unk> at the beginning of 2023 and.

Scott: In the fourth quarter included a negative impact due to the unfavorable shift in OCI, resulting from the cash flow hedge uncertain <unk> borrowings we mentioned earlier.

Scott: Yes.

Scott: We're very proud of this track record of value creation, and believe that we're well positioned to continue creating additional value for our shareholders in the future.

Scott: Turning to slide 14, I'll wrap up with some comments about our outlook and priorities for 2024.

There remains a high degree of uncertainty regarding the economic conditions, we will see in 2024, but we believe we are well positioned to perform well in any economic scenario that emergence this year.

Scott: Our strong balance sheet and conservative underwriting criteria should enable us to effectively manage through an economic downturn.

Scott: As we have throughout our history.

Scott: I'd like to reemphasize the point I made earlier, while we may see an increase in problem loans and non accrual loans and an economic downturn. Historically this has not resulted in a meaningful level of loss due to the strong collateral required in our underwriting.

Scott: And we would also expect to continue to have a level of net charge offs as well below the level experienced by the broader banking industry in a material economic downturn or recession.

Scott: Should the fed man to keep us out of recession and affect a soft landing for the economy, our business development capabilities and unique value proposition will enable us to take advantage of strengthening economic conditions and.

Scott: And an increase in loan demand.

Scott: At this point.

With economic conditions remaining uncertain at the start of the year, we'll continue to prioritize prudent risk management and.

Scott: And conservative underwriting criteria, which should result in a modest level of near term loan growth, but we have the ability to be nimble and quickly respond to changing market conditions and should economic conditions improve in loan demand increase we would expect to see a higher level of loan growth at that point.

Scott: As we look to our markets.

Scott: We believe the competitive environment has become more favorable for us as many banks have had to pull back from loan production due to capital constraints funding challenges <unk> credit concerns.

We're able to maintain our disciplined pricing criteria and still add new relationships with fewer banks being as aggressive in pricing and structure in order to win business.

Scott: As we've seen in recent quarters.

Scott: As we've indicated deposit gathering is going to remain a top priority.

Scott: With an increased focus on targeting.

Scott: Deposit rich industries, like nonprofits and homeowner associations.

Scott: We have a good deal of expertise in both of those areas throughout the company that we're now leveraging to a greater extent to add new clients that are good sources of low cost deposits.

Scott: Most importantly, our focus will remain in our core business and our core clients. These type of clients provide good opportunities to expand relationships over time as they typically want and need the various products and services that we provide and they typically result in very low levels of credit losses.

Scott: This is where we built our franchise on and there are lots of still there's still lots of room to.

Scott: To grow by focusing on these types of clients.

Scott: While 2024, it will be a difficult year to forward forecast, we do see a number of catalysts that should contribute to earnings growth. This year.

Scott: Our core revenue sources of loan yields deposit costs <unk> of mortgages have survived the strains of 2023 and seem likely to have upside in 2024.

Scott: We have good momentum in business development that should lead to continued growth in our client roster and balance sheet.

Scott: We have a liability sensitive balance sheet and a good deal of deposits indexed to fed funds. So when we see expansion in our we should see expansion in our net income net interest margin as market conditions normalize and interest rates declined.

Scott: We also continue to be disciplined in our expense management, while we continue to get the benefit from leverage.

Scott: Leveraging past investments in technology talent and office expansion.

Scott: In the past year or so we've also made many process improvements throughout the organization that should lead to enhanced efficiencies as we continue to add scale.

Scott: We believe these catalysts should result in a higher level of earnings this year.

Scott: Even with a modest level of balance sheet growth.

Scott: And as always we'll continue to operate the company with a long term perspective, the strength of the franchise and the balance sheet, we've already built.

Scott: We believe we can continue to capitalize on the attractive markets that we operate in to consistently add new clients realize more operating leverage as we increase scale generating profitable growth and further enhance the value of our franchise.

Scott: In the future as we grow earnings and create value for shareholders. The improved currency will have from higher stock price will enable us to execute on additional M&A transactions that we believe will enhance shareholder value just as our past transactions have done.

Speaker Change: With that we're happy to take your questions.

Speaker Change: So Barry go ahead and open up the call. Please. Thank you again, ladies and gentlemen, I'd like to ask a question. Please press star one on your telephone again to ask a question. Please press star One line one moment. Please for our first question.

Barry: Our first question comes from the line of Brett Robertson.

Brett D. Rabatin: Group Your line is open.

Brett D. Rabatin: Hey, good morning, everyone.

Brett D. Rabatin: Hey, Brett.

Wanted just to start off on on credit.

Brett D. Rabatin: You talked a little bit of off of $3 9 million that you that you added this quarter.

Speaker Change: Can you talk a little bit about.

Brett D. Rabatin: And then kind of what led to those moving into non accrual and Jay.

Speaker Change: Anything you are seeing any particular industries.

Speaker Change: Yeah.

Speaker Change: You're asking about the credit you're asking about.

Speaker Change: <unk>.

Jay: Credit trends across the platform.

I'm just asking about the two loans that I think are $3 9 million.

Jay: What led to.

Speaker Change: Yes sure.

Speaker Change: One was a relatively small commercial loan and the other was a construction loan that has substantial equity in it.

Speaker Change: The recent valuation of collateral showed it was well in excess of the loan.

Speaker Change: Both of those were downgraded for very specific reasons related to borrowers.

Aren't indicative of broader trends that we're seeing in the portfolio.

Speaker Change: This is reflective of what we think is seen throughout our history, which is sometimes loans go into nonperforming status and they rarely results in a meaningful level of loss.

Speaker Change: Due to where underwriting standards and our strong collateral and the multiple sources of repayment that we require.

Okay.

Speaker Change: And then on the.

For loans that you moved to non accrual last quarter that are related for $42 million.

Speaker Change:

Speaker Change: How much of the $3 $9 million provision was specifically related to.

Speaker Change: To those and then any color on how much of that relationship I know, there's a commercial loan.

Speaker Change: Commercial owner occupied commercial real estate loans residential mortgage.

Speaker Change: I think our personal line of credit how much would be.

Speaker Change: <unk>.

Speaker Change: Powered by real estate.

Speaker Change: I think our starting point on that has to be that.

Speaker Change: That relationship is.

Speaker Change: Currently the subject of ongoing litigation.

Speaker Change: Which is out in the public realm through the courts.

Speaker Change: And because of that we shouldnt provide any additional detail.

Speaker Change: I think specifically on the question of the.

Speaker Change: The reserve this quarter, we put up it was substantially related to that relationship.

Speaker Change: And we think that that provision that we recorded is prudent and conservative based on everything we know as of now.

We do continue to believe we have.

Speaker Change: Adequate collateral and I mentioned that we've been working on.

Speaker Change: Outdated appraisals and all the appraisals have held up including some that have increased significantly.

Speaker Change: Significantly in a couple of cases.

Speaker Change: Okay, Yes, Pablo litigation Thats, Linda somewhat unusual.

Speaker Change: And then maybe just for clarity on the margin and kind of the pace from here.

Speaker Change: You referenced that you used some shorter term funding sources.

Speaker Change: This quarter.

Speaker Change: Can you maybe talk about just how you see the margin progressing.

Speaker Change: 24.

Speaker Change: And then just for IFF.

Speaker Change: The fed's cutting 25 100 basis points what.

Speaker Change: What rate cuts would mean to the margin as you said.

Speaker Change: Yes, let me take a stab at that David and then if you want to jump in and.

Speaker Change: Provide more breadth you want more.

Just to ask but.

Speaker Change: As I look at NIM as a starting point.

Speaker Change: And look for kind of a trend.

Speaker Change: And a bottoming out.

Speaker Change: I would tell you our last three months.

Speaker Change: We're apples to apples $2 50.

Speaker Change: October $2 35 November $2 26 December.

Speaker Change: We were anticipating $2 33 for January and that seems to be about where we are.

Speaker Change: $2 35 in February and $2 43 in February and March are kind of our internal.

Speaker Change: Forecast.

Again, who knows.

Speaker Change: We talked about several times in our comments.

Speaker Change: Overall the.

Speaker Change: And so.

Speaker Change: Our estimate.

Speaker Change: And sort of unprecedented.

Speaker Change: Precedented conditions that we're in today is 25 basis point decline would produce something like $1 billion.

Speaker Change: Annualized.

Earnings improvement revenue and earnings improvement.

Speaker Change: So those would be.

Speaker Change: Kind of the two data points I would point to from.

But we think we know today.

Speaker Change: David.

Yes that totally good start yes.

Speaker Change: Okay.

Speaker Change: Really helpful Brad.

Speaker Change: That's really helpful.

Speaker Change: Other questions, but I'll hop back in queue. Thanks, so much.

Speaker Change: Yes. Thank you. Thank you one moment please.

Speaker Change: Our next question comes from the line of Brady Gailey of <unk>. Your line is open.

Brady Gailey: Hey, Thanks, good morning, guys.

Brady Gailey: Good morning Brady.

Brady Gailey: One more just on the reserve build I mean, taking the reserve up.

Brady Gailey: 18 basis points in a quarter is pretty notable it sounds like that's driven by.

Brady Gailey: As a specific reserve on this credit that were litigation is involved is that correct.

Brady Gailey: That is correct.

Brady Gailey: Okay.

Brady Gailey: I know you don't want to.

Brady Gailey: Talk much about it but just the facts on X.

Brady Gailey: As that loan and what type of loan.

Brady Gailey: Where the litigation is involved.

Brady Gailey: The relationship which includes a number of loans.

Brady Gailey: As a total of $53 million and we participated out $11 million of that so on our books is $42 million.

Brady Gailey: Okay.

Brady Gailey: The composition of those loans.

Brady Gailey: That's what.

Brady Gailey: The composition of the loans.

Brady Gailey: Yes.

Several loans that make up the $42 million, that's on <unk> balance sheet.

Brady Gailey: C&I CRE.

Brady Gailey: Their commercial loans that are secured with <unk>.

Brady Gailey: All of that real estate collateral that we've talked about in the past.

Brady Gailey: Okay.

Speaker Change: Alright, and then Scott I heard you say you are expecting a modest level of loan growth. This year I mean should we interpret that as.

Speaker Change: Low single digit or could it be better than that.

Scott: Let me check my Crystal ball here.

I can take that.

Speaker Change: For us.

Scott: We don't think 2023.

Scott: We're hoping.

24, it's not another 2023.

No.

We have historically.

Scott: Found lots of opportunities to grow our types of loans with our types of clients.

Scott: Across our 19 offices and.

Speaker Change: I think that will be the future for us.

Speaker Change: I'm not sure if that plays out entirely in 2020 for one of the things we were thinking about in 2023.

Speaker Change: We had a 114 basis point loan to deposit ratio in October of 2022, and this is really hard to grow loans when youre not sure.

Speaker Change: Where your deposit growth is going to come from to support that.

Speaker Change: So a lot of our thinking in 2023 was yes, thats grow deposits I mean back to.

Speaker Change: You'll get our loan to deposit ratio down where we have historically run at which is kind of 90% to 95% and I think what we've talked about on these calls.

Speaker Change: We would like to get that down to 100% by year end 2023, which we did so.

Speaker Change: I think we were in a little bit of a chicken and egg problem in 2023, where what you are saying you are not really going to grow loans.

Speaker Change: If we don't have the deposits to support it in house.

Speaker Change: So let's focus on getting deposits in house the other.

Speaker Change: Your side of that though in.

Speaker Change: In the past I've seen if you kind of shut off the loan spigot, it's hard to turn it back on so we've tried to be mindful of that with our relationship bankers.

Speaker Change: And Andrew will support loan request for.

Speaker Change: Loans that do fit well into our credit.

Speaker Change: Approach and our strategy and our type of client and whatnot. So.

Speaker Change: So long way around of saying, we're planning on kind of mid single digit loan growth.

Speaker Change: In 2024, because we don't know.

Speaker Change: And.

Speaker Change: For us that drives.

Speaker Change: Guesstimate of mid teen revenue growth.

Speaker Change: And if we can do what David was saying in terms of.

Speaker Change: Managing our operating expenses, which is.

Speaker Change: If we grow mid teen revenue growth than maybe $20 million or so in operating expenses per quarter. If we did.

Speaker Change:

Speaker Change: Mid single digit revenue growth.

Speaker Change: Maybe $19 million in the quarter.

Speaker Change: Operating expense I mean, thats kind of how we're thinking about it Brady and I know thats not a very satisfying answer but thats.

Speaker Change: I think the best you can do given the.

The environment we're in.

Speaker Change: No I understand that's very helpful. Thank you guys.

Speaker Change: Thank you one moment please.

Our next question comes from the line of Adam Butler of Piper Sandler Your line is open.

Adam Butler: Hey, good morning, everybody. This is Adam on for Matthew Clark.

Adam Butler: If I could just touch touch on the deposit side first you guys had nice deposit growth during the quarter.

It looks like the majority of it was based on time deposit growth.

Adam Butler: I was just curious if you could touch on the nature of that growth in <unk>.

Adam Butler: The maturity of those deposits and what you put them on that.

Speaker Change: Yes, Adam just before we address that there's one more point I would like to make about Brady's question.

Speaker Change: Which.

Speaker Change: Zinc was obvious but in case, it wasn't and I would just.

Adam Butler: Follow through I make the point I think that the more important measure for me of all of those things I said is what is the run rate EPS and what's happening there and I think our core EPS run rate would improve.

Adam Butler: Significantly with those conditions I described with 15% ish revenue growth and the expense growth, we talked about and gets us by the end of the year into a earnings position well above where we were in 'twenty two 'twenty three on a run rate basis. So I just think.

Adam Butler: That's an important conclusion.

Speaker Change: Brady of what.

Speaker Change: You specifically asked about so.

Speaker Change: Sorry to take a detour there Adam but let's go to your question about.

Speaker Change: Deposits.

Speaker Change: And.

Speaker Change: I think.

Speaker Change: The increase that we put on in deposits in the fourth quarter. Some of them were noninterest bearing we actually grew DDA I think for the first time in a year so that felt good.

Speaker Change: The Cds I think we added about.

Speaker Change: $49 million in three months deposits 45 million and six months deposits of $7 million of nine months deposits.

Speaker Change: During Q4, so those would rollover.

Speaker Change: Roll off over the course of.

Speaker Change: The year and give us the opportunity to reprice those.

Speaker Change: As we've talked about either.

Speaker Change: Because rates are falling.

Speaker Change: Markets are normalizing and we talked about that.

Speaker Change: Several times in our comments because historically, we have been able to grow.

Speaker Change: Kind of core deposits with clients pretty effectively.

Speaker Change: For example, as we've tripled the balance sheet since our IPO.

Speaker Change: And I just think that 2023 was this abnormal environment.

Speaker Change: I don't think its going to continue forever may continue some into 2024, but I don't think its going to continue forever. So.

Speaker Change: We do expect we will have the opportunity to.

Speaker Change: Refi refinance those higher cost deposits.

Speaker Change: As they roll off in 2004.

Speaker Change: Okay I appreciate the color there.

Speaker Change: I failed to mentioned the increase in non interest bearing but I was getting married it was nice to see that too and I was just going to just looking at overall deposit flows.

Speaker Change: I was given your guide for potentially mid single digit loan growth that you're thinking kind of.

Speaker Change: The same in deposit growth and keeping that loan to deposit near that 100% Ranger has.

Pat.

Yeah.

Pat: That guidance changed on your end.

Thanks.

Pat: No I think we would like to see it trend over time back to our historic numbers in the low to mid nineties.

Pat: That's where we feel comfortable.

Speaker Change: I would tell you.

Speaker Change: Another data point.

Speaker Change: That helps.

Speaker Change: Argument or our hope that we bottomed out on NIM is a spot rate for deposits.

Speaker Change: Yes, $3 31.

Speaker Change: Was.

Speaker Change: Was December.

Speaker Change: At December 31st I mean.

Speaker Change: Was <unk>.

Speaker Change: 331%.

Speaker Change: So we're seeing that.

Speaker Change: Increase of moderate as we go through the.

Speaker Change: The fourth quarter.

Speaker Change: Okay, that's great that's great to see.

Speaker Change: Those were my questions I appreciate the time thanks.

Speaker Change: Yes, Thank you Adam.

Speaker Change: Thank you one moment please.

Okay.

Speaker Change: Our next question comes from the line of Bill Zelem cap.

William J. Dezellem: Capital Management your line is open.

Pardon me that Bill days, Alan Yes, Youre line is open.

William J. Dezellem: Okay. Thank you. So two questions first of all relative to a comment that you've made in the press release are you seeing an increase in loan demand.

William J. Dezellem: Now where was the same or is the press release simply trying to relay that you are ready when that does happen.

Speaker Change: Yes, I am not sure Bill I think are.

Speaker Change:

Speaker Change: Loan demand.

Speaker Change: <unk> came down from our type of borrowers when rates spiked and I think people have come back some.

Speaker Change: And so in that sense, its probably improved.

Speaker Change: Our pipelines.

Speaker Change: At the end of Q4 are actually down from the end of Q3, but I think some of that is this kind of pressure we put on our relationship bankers to focus on deposits.

Speaker Change: Over straight up loans.

Speaker Change: Also think.

Speaker Change: Net.

Speaker Change: Yeah, we saw let's say a year ago, probably six months ago.

Speaker Change: Banks doing kind of unreasonable.

Speaker Change: Loan terms and rates and I would say, we see a lot less of that now although in January we have heard a couple of anecdotes about youll kind of pricing that we would never do.

Speaker Change: I assume that some of these banks that are looking to grow in our markets that are assuming that we're going to see big fed rate cuts and rates come down and that they are.

Speaker Change: Lower oil prices are going to make sense, but yes, there is.

Speaker Change: A number of dynamics in place there.

Speaker Change: My underlying conclusion from all of that is we have tiny market share in all of our markets and we're in a lot of really attractive growth markets and so I think to the extent, we want to grow loans were going to be able to grow loans and I think some number in the mid single digits.

Speaker Change: Seems very achievable to me for this year.

Speaker Change: Okay. That's helpful and you May have just answered my follow up question to that is as you think about running the bank debt.

Speaker Change: And that you probably have seen year loan pipeline decrease really because thats, a directive or initiatives that you've had in place.

Speaker Change: On deposits.

Speaker Change: Does that lead you to.

Speaker Change: Change anything in terms of.

Speaker Change: The direction that you're asking bankers to go.

Speaker Change: Or are you still on the same holding pattern than maybe you would've been.

Speaker Change: Last quarter.

Speaker Change: No I felt like we were in a little bit of a chicken and egg problem.

Speaker Change: In Q3 were.

Speaker Change: No, we're telling our bankers to focus on relationships that bring deposits and loans, but don't lead with loans.

Speaker Change: And frankly, a lot of times the ratio. If you want you do lead with loans and you bring deposits with it and so.

Speaker Change: By getting our loan deposit ratio down to 100, I feel like that frees us up out of the chicken and egg problem and we can go out and focus on that.

Speaker Change: The kind of relationships that we want.

Speaker Change #100: I would tell you also though I feel like.

Speaker Change #100:

Speaker Change #100: This second half of the year 'twenty three gave us an opportunity to really talk to our people about.

Speaker Change: Our type of client.

Speaker Change: And focusing on those kind of people that we can really do.

Speaker Change: Our range of services for I mean I was in a.

Speaker Change #101: New business call last week.

Speaker Change #101: There we met with this couple that had a business in.

Speaker Change #101: And.

They're just going to benefit from all the different things, we do and if you look at our top 10 clients in any office. Its the same story in every one of them, where they have six or eight or 10 products with us.

Speaker Change #101: And so I think just really helping our people focus on our type of client with our types of credits in our types of relationships that include.

Speaker Change #101: Deposits loans Treasury management.

Speaker Change #101: Risk management.

Speaker Change #101: Planning Trust and investment management succession planning, all that kind of stuff and that's what we're really good at and that's I think where we've had the operating refocus people.

Speaker Change #101: That will benefit us in 2024, I think that that'll be a good thing for us.

Speaker Change #102: Great. Thank you Scott and then I am going to ask one question relative to the large borrower.

Speaker Change #102: That.

Speaker Change #103: Went back last into Q3.

Speaker Change #104: You mentioned that you put.

Speaker Change #105: Provision in place on some of those loans. So my question is if you were to.

Speaker Change #105: Okay.

Speaker Change #105: If you were to have more success.

Speaker Change #105: Say.

If you took a took alone over and sold it at a premium that would also apply to.

Speaker Change #105: Okay.

Speaker Change #105: To offset this.

Speaker Change #105: These other loans that you may come in a bit under is that correct or is there and I guess secondarily is there any cross.

Speaker Change #105: Robert Redford property between the loans as collateral that that comes into play.

Speaker Change #105: Make your reserving our provisioning conservative that way.

Speaker Change #106: Yes, with the litigation I want to be really careful what we say here, but if the question is are the loans Clark Cross collateralize the answer to that is yes.

Speaker Change #107: Great I'll leave it at that and keep that keep it easy for you. Thank you.

Speaker Change #108: Thank you Bill. Thank you one moment please.

Speaker Change #109: Our next question comes from the line of Brett <unk> of Hardie Group. Your line is open.

Speaker Change #109: Okay.

Brett D. Rabatin: Hey, just a couple of follow ups.

I guess first did I hear correct on the on the expenses.

Brett D. Rabatin: You have mid teen revenue growth guidance is.

Brett D. Rabatin: <unk> 19, 5% to 25 and if it's single digit then it's 18 five to $19 five on a quarterly pace was that those the right numbers correct Yep.

Brett D. Rabatin: Okay.

Speaker Change #110: Does that mean that the difference would be kind of the bonus or incentive comp, but the folks we get.

Speaker Change #110: For hitting certain targets or what.

Speaker Change #110: Can you talk maybe a little bit more about that.

Speaker Change #111: Sure Jason.

Speaker Change #111: The vast majority of it is incentive comp accrual related yes.

Speaker Change #111: Okay.

Speaker Change #111: And then.

Speaker Change #111: Scott if I think about mortgage.

Speaker Change #111: Sure.

Speaker Change #111: <unk> obviously.

Speaker Change #111: It's tough to know what rates do but it feels like people are getting more used to higher mortgage rates and so I was just.

Speaker Change #111: Thinking about the mortgage production from here and potential revenue in 'twenty four I know, it's I know, it's tough to predict but.

Speaker Change #111: I would assume that we'd see a meaningful pickup in activity and income related to that as we get into the second quarter is that fair or do you see kind of the challenges remaining from production and overall revenue for that piece of the business.

Speaker Change #111: Where we come in every morning, and hope for an uptick in.

Speaker Change #111: Card it of course.

Speaker Change #112: Remember in January which are slow months, but you wont address that Julien.

Speaker Change #113: Alex kind of day, we're hoping for an uptick we're planning for an uptick but it will continue to be challenging regardless.

Speaker Change #113: In addition to the rate environment.

Speaker Change #113: The supply is still kind of low in our core markets as well.

Speaker Change #113: We're working very hard to find new production avenues, so no new MLR as we've been adding those over the course of the last couple of quarters have some good ones in the pipeline.

Speaker Change #113: That's another way we're looking at the major way, we're looking at increasing our production, but I think Lee Chris.

Speaker Change #113: It could be a bit of a challenge for the next several months and are hoping for.

Speaker Change #113: Seasonality coming into the spring and summer months as well as <unk>.

Speaker Change #113: Environment improvement and.

Speaker Change #113: Hey, Margaret sentiment frankly, changing a little bit.

Speaker Change #113: Give us a little bit of a base into the summer in Belmont.

Speaker Change #113: We are seeing.

Speaker Change #113: House prices flat to coming down.

Speaker Change #113: Our higher end markets and we're seeing.

Speaker Change #113: The time on market extend so all that stuff.

Speaker Change #113: Sounds like late cycle.

Speaker Change #113: Recovery potential.

Speaker Change #113: See rates come down and.

Speaker Change #113: And of course, you don't mortgage rates are generally tied more to the bond rally that we've seen over last six months and fed funds. So.

Speaker Change #113: You could imagine a better year this year for mortgages.

Speaker Change #113: What we saw last year, which was pretty hideous and then.

Speaker Change #113: We continue to rationalize expenses in that area.

Speaker Change #113: Possible.

Speaker Change #114: Sure resources.

Speaker Change #114: These are things that we can do to keep managing expenses as well.

Speaker Change #114: Some other people out to other areas that sort of thing, but I'm trying to cut our production capability.

Speaker Change #114: Okay.

Speaker Change #114: And maybe just one last one in your prepared commentary Scott you talked about M&A and I guess I was.

Speaker Change #115: A little surprised just kind of given where the stock is it would seem like that would be that'd be tougher I kind of thought you might talk more about maybe share repurchases and M&A, but any additional color.

Speaker Change #115: Rounds, M&A and just are you having discussions with folks what what what do you think is the outlook for you guys from an M&A perspective, I know you've been.

Speaker Change #115: We live in the past.

Speaker Change #116: Yes, so what works well for us is CT shifts that lead to.

Gartner shifts.

Speaker Change #116: So the fact that our stock.

Speaker Change #116: Is that 80% or so of tangible book value I mean, we don't believe that.

Speaker Change #116: Is it.

Speaker Change #116: It makes sense and that's not really where it's going to be with $33.

Speaker Change #116: Year, and a half ago. So I do think if we can show.

Speaker Change #116: It demonstrates some of the things we've been talking about on this call today that.

Speaker Change #116: There is some upside there and then what was the core chips are proceeding that.

Speaker Change #116: That would give us the.

Speaker Change #116: Currency that we would want to do.

Speaker Change #116: And M&A, but we're not.

Speaker Change #116: We're always looking and we're opportunistic we're working on relationships, but we're going to be conservative and disciplined your comment is absolutely right, we're not going to do anything.

Speaker Change #116: With our stock at <unk>.

Speaker Change #116: <unk> I don't think in our 17 wherever it is now.

Yes.

Speaker Change #116: <unk>.

Speaker Change #117: Does that mean, we shouldnt keep working on it.

Speaker Change #117: Okay.

Speaker Change #118: Fair enough I appreciate all the color. Thanks.

Speaker Change #118: Thank you I'm showing no further questions at this time I will turn the call back over to Scott Whalley for any closing remarks.

Speaker Change #118: Yes.

Scott C. Wylie: Well, Thank you again valley.

Scott C. Wylie: Just like to wrap up with.

Scott C. Wylie: Some overall comments from our conversation today, you know our focus on client relationships got us through 2023 with positive earnings with deposit growth loan growth increased tangible book value per share in spite of the seasonal negative impact on tangible book value.

Scott C. Wylie: We reduced our operating expenses.

Scott C. Wylie: We reduced our loan to deposit ratio from a peak of $1 14.

Scott C. Wylie: Down to in 2022 down to.

Scott C. Wylie: Just over 100% at year end.

Scott C. Wylie: Our NIM appears to have bottomed out our AUM showed some nice growth our capital ratios improved.

Scott C. Wylie: Our increased NPL should work out in 2024, as we continued our 40 quarter streak of essentially zero percent.

Scott C. Wylie: Charge offs last year.

Scott C. Wylie: With 2023 behind us and entering our 20th year.

In 2024 here, we opened the doors, yes March 17th.

Scott C. Wylie: 24.

Scott C. Wylie: Yes, we're cautiously optimistic about our ability to grow revenues and therefore earnings nicely in 2024 and beyond.

Scott C. Wylie: Feel that relatively modest asset growth with improved margins and improved fees can once again deliver the kind of strong operating leverage that we've seen since our 2018 IPO.

Speaker Change #119: I really appreciate everybody, taking the time to dial in and speak with US. This morning, we sure appreciate the support for first western and have a great day.

Speaker Change #120: Thank you ladies and gentlemen, this does conclude today's conference. Thank you all participating you may now disconnect have a great day.

Q4 2023 First Western Financial Inc Earnings Call

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