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, announced today the signing of a definitive merger agreement pursuant to 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 in assets under management as of June 30, 2021.
Rocky Mountain Bank clients should continue to conduct business as usual at this time, and will receive communications from First Western prior to any changes related to this transaction.
“This transaction brings together two highly complementary institutions with similar values, business models, and commitment to helping clients achieve their financial goals,” said Scott C. Wylie, Chairman, President and Chief Executive Officer of First Western and the Bank.
“Expanding our presence in Wyoming is a key element of our long-term growth strategy given its attractive demographics and favorable environment for our unique approach to private banking. The talented team at Rocky Mountain Bank has consistently attracted new clients and grown 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,” Wylie said. “With our combined resources, we believe that we can steadily increase our market share in Wyoming in the future, providing another catalyst for enhancing 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 fourth quarter 2021 or early first quarter 2022 and will operate 18 offices in four states, including Colorado, Arizona, Wyoming, and California.
The transaction is expected to be 5.2 percent accretive to 2022 earnings per share and 0.4% dilutive to tangible book value, with a short tangible book value earn-back period of 0.4 years. Under the terms of the merger agreement, Teton Financial Services shareholders are entitled to receive 0.0466 shares of First Western common stock and $0.39 in cash for each share of Teton Financial Services stock, subject to certain adjustments. Based on First Western’s closing stock price on July 21, 2021, the aggregate merger consideration is valued at $47.8 million. The value of the merger consideration will fluctuate until closing based on the value of First Western’s stock.
First Western’s and Teton Financial Services’ respective boards of directors have unanimously approved the merger agreement. Additionally, directors and executive officers of Teton Financial Services have entered into agreements whereby they have committed to vote their shares in favor of the transaction.
The closing of the acquisition is subject to satisfaction of customary closing conditions, including regulatory approvals and approval of Teton Financial Services shareholders.
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 trust bank platform, which includes a comprehensive selection of deposit, loan, trust, wealth planning and investment management products and services. First Western’s common stock is traded on the NASDAQ Global Select Market under the symbol “MYFW.”
About Teton Financial Services
Teton Financial Services serves as the holding company for Rocky Mountain Bank, a Wyoming-based community bank serving the Wyoming market since 1983. Headquartered in Jackson, WY, Teton Financial Services provides a wide range of products and services across three branches to community-based businesses and individuals located in Teton, Sublette, and Sweetwater counties. Teton Financial Services offers business banking, specialty lending, deposits products as well as personal banking and wealth & trust solutions to individuals.