JACKSON – First Western Financial, Inc., “First Western” (Nasdaq: MYFW), parent company of First Western Trust Bank, “the Bank”, and Teton Financial Services, parent company of Rocky Mountain Bank, today announced the signing of a definitive merger agreement under which Teton Financial Services would merge with and into First Western.
Teton Financial Services has three branches in the State of Wyoming, assets of $ 420.7 million, total deposits of $ 374.6 million, and total loans of $ 267.9 million as of June 30, 2021. Teton Financial Services also offers trust and wealth management services and had $ 394.1 million available. assets under management as of June 30, 2021.
Rocky Mountain Bank customers are expected to continue to operate as usual for the time being and will receive communications from First Western prior to any changes related to this transaction.
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âThis transaction brings together two very complementary institutions with similar values, business models and a commitment to helping clients achieve their financial goals,â said Scott C. Wylie, Chairman, President and CEO of First Western and the Bank.
âDeveloping our presence in Wyoming is a key part of our long-term growth strategy given its attractive demographics and environment conducive to our unique approach to private banking. Rocky Mountain Bank’s talented team have consistently attracted new clients and increased loans and deposits at a double-digit compound annual growth rate over the past seven years, and their experience and expertise will further strengthen our commercial banking capabilities. Said Wylie. âWith our combined resources, we believe we can steadily increase our market share in Wyoming going forward, providing another catalyst to improve the value of the First Western franchise. “
As of June 30, 2021, the combined institutions would have approximately $ 2.4 billion in assets and $ 7.2 billion in assets under management. The transaction is expected to close in late Q4 2021 or early Q1 2022 and will operate 18 offices in four states, including Colorado, Arizona, Wyoming and California.
The transaction is expected to be accretive 5.2% to 2022 earnings per share and 0.4% dilutive to tangible book value, with a short payback to tangible book value of 0.4 years. Pursuant to the merger agreement, shareholders of Teton Financial Services are entitled to receive 0.0466 common shares of First Western and $ 0.39 in cash for each share of Teton Financial Services, subject to certain adjustments. Based on the closing price of the First Western share on July 21, 2021, the total merger consideration is valued at $ 47.8 million. The value of the Merger Consideration will fluctuate until Closing depending on the value of the First Western Shares.
The boards of directors of First Western and Teton Financial Services have unanimously approved the merger agreement. In addition, the directors and officers of Teton Financial Services have entered into agreements by which they have committed to vote their shares in favor of the transaction.
Closing of the acquisition is subject to the satisfaction of customary closing conditions, including regulatory approvals and shareholder approval of Teton Financial Services.
About First Western Financial Inc.
First Western is a financial services holding company headquartered in Denver, Colorado, with operations in Colorado, Arizona, Wyoming and California. First Western and its subsidiaries provide a fully integrated suite of wealth management services on a private banking platform, which includes a comprehensive selection of deposit, loan, trust, wealth planning and asset management products and services. investments. The common shares of First Western trade on the NASDAQ Global Select Market under the symbol “MYFW”.
About Teton Financial Services
Teton Financial Services is the holding company of Rocky Mountain Bank, a Wyoming community bank serving the Wyoming market since 1983. Based in Jackson, WY, Teton Financial Services offers a wide range of products and services through three branches to businesses and individuals located in Teton, Sublette and Sweetwater counties. Teton Financial Services offers business banking services, specialized loans, deposit products as well as personal banking solutions and wealth and fiduciary solutions to individuals.