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First Western Financial, Inc. Agrees to Acquire Deposits, Loans and Other Assets of Four Simmons Bank Locations in Denver

Written by Customer Service on . Posted in Public Companies.

DENVER, Feb. 10, 2020 (GLOBE NEWSWIRE) — First Western Financial, Inc. (NASDAQ: MYFW), a financial services holding company headquartered in Denver, Colorado (“First Western”), announced today that its wholly owned subsidiary, First Western Trust Bank (the “Bank”), has entered into a branch purchase and assumption agreement with Simmons Bank (“Simmons”), pursuant to which the Bank will acquire all of Simmons’ Colorado locations, including three Simmons branches and one loan production office located in Denver, as well as certain of Simmons’ deposits and loans and other assets.  Closing of the transaction is expected in the third quarter of 2020 and is subject to certain closing conditions, including customary regulatory approvals.
First Western intends to consolidate three of the acquired locations into existing Bank branches and record approximately $0.8 million in pre-tax transaction charges.  The transaction is expected to be accretive to First Western’s earnings per share in 2020 by approximately 6%-7%, excluding pre-tax transaction charges, and approximately 14%-15% accretive to earnings per share in 2021, based on consensus Street estimates.“This branch purchase and assumption agreement is a very attractive way for First Western to deepen our presence in our core Denver market in a manner that will be immediately accretive to earnings,” said Scott C. Wylie, CEO of First Western.  “This transaction will enable us to add an attractive mix of commercial clients, as well as experienced banking talent that we believe will enhance our business development capabilities.  With the additional scale we will have following this transaction, we expect to improve our operating leverage and further enhance efficiencies in the company.  We are excited to complete this acquisition, which we believe will be a strong complement to our organic growth and provide another catalyst for improving our level of profitability in the coming years.”As of December 31, 2019, the combined deposit and loan balances of the branches to be acquired (excluding certain deposits and loans not included in the transaction) were approximately $58 million and $105 million, respectively.  Simmons is a subsidiary of Simmons First National Corporation (NASDAQ: SFNC), an Arkansas-based financial holding company.“We are pleased about the opportunity this transaction provides our Colorado customers and associates and believe that the partnership with First Western will be very beneficial for all stakeholders,” said Marty Casteel, president, chairman, and CEO of Simmons.Stephens Inc. served as financial advisor to Simmons.  Hovde Group, LLC served as financial advisor and Shapiro Bieging Barber Otteson LLP served as legal counsel to First Western.About First Western Financial, Inc.

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