First Western Financial, Inc. Announces Stock Repurchase Program
First Western Financial (NASDAQ: MYFW) has announced a stock repurchase program authorized by its Board of Directors on June 13, 2024. The program allows the company to buy back up to 200,000 shares, roughly 2% of its outstanding shares, with approval from the Federal Reserve. CEO Scott C. Wylie emphasized that the repurchase is a long-term investment aimed at enhancing shareholder value and boosting earnings and tangible book value per share. The repurchases can occur via open market, privately negotiated transactions, or other methods compliant with securities laws. The program is effective for one year, and the timing and volume of repurchases will depend on various factors, including price, trading volume, and market conditions. It can be suspended or discontinued at any time without notice.
- Approval to repurchase up to 200,000 shares, representing about 2% of outstanding shares.
- Federal Reserve's approval of the repurchase program.
- Potential to increase earnings per share and tangible book value.
- Flexibility to conduct repurchases based on market conditions and other factors.
- Repurchase program could positively impact shareholder value.
- Repurchase program might be suspended or discontinued at any time without notice.
- Timing and volume of repurchases depend on uncertain factors like market conditions and trading volume.
Insights
Stock repurchase programs typically signal that a company believes its shares are undervalued. By buying back shares, the company reduces its outstanding share count, which can boost earnings per share (EPS) and potentially raise the stock price. For First Western Financial, a 2% repurchase is a modest move, but it indicates confidence in the company's financial health and future prospects.
From a financial perspective, the impact of a buyback depends on how the repurchases are funded. If it's from existing cash reserves, it shows strong liquidity. If funded by debt, it might raise concerns about increased leverage. Investors should check the company's balance sheet to understand the source of the funds.
In the short term, this announcement might provide a slight boost to the stock price due to increased demand for shares. In the long term, consistent buybacks can enhance shareholder value by improving key financial metrics.
The dynamics of a stock repurchase program can also be viewed through market conditions. If the broader market sentiment is positive, repurchases could have a stronger impact on share price. However, if market conditions are volatile or bearish, the effect might be muted. First Western Financial's decision to buy back shares aligns with a strategy to provide support to its stock amid various market scenarios.
Moreover, investors should consider how similar companies in the financial services sector are performing and whether they are also engaging in buybacks. This can provide context on whether First Western's move is part of a larger trend or a unique strategy.
For retail investors, understanding the timing and conditions under which the repurchases will occur is crucial. The flexibility in the repurchase plan allows the company to maximize shareholder value while navigating market uncertainties.
DENVER, June 17, 2024 (GLOBE NEWSWIRE) -- First Western Financial, Inc. (NASDAQ: MYFW), a financial services holding company headquartered in Denver, Colorado (“First Western” or “the Company”), announced that on June 13, 2024 its Board of Directors approved a stock repurchase program that authorizes the Company to repurchase up to 200,000 shares of its common stock, which represents approximately
Scott C. Wylie, CEO of First Western, said, “We believe that repurchasing our shares is an attractive long-term investment for the Company, is in the best interest of our shareholders, and represents an opportunity to deploy capital that will be accretive to both earnings and tangible book value per share."
Stock repurchases under this program may be made from time to time on the open market, in privately negotiated transactions, or in any other manner that complies with applicable securities laws, at the discretion of the Company. The program will be in effect for a one-year period, with the timing of purchases and the number of shares repurchased under the program dependent upon a variety of factors including price, trading volume, corporate and regulatory requirements and market conditions. The repurchase program may be suspended or discontinued at any time without notice.
About First Western Financial, Inc.
First Western is a financial services holding company headquartered in Denver, Colorado, with operations in Colorado, Arizona, Wyoming, California, and Montana. 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.” For more information, please visit www.myfw.com.
Forward-Looking Statements
Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “position,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “opportunity,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Those risks and uncertainties include, without limitation, the lack of soundness of other financial institutions or financial market utilities may adversely affect the Company; the Company’s ability to engage in routine funding and other transactions could be adversely affected by the actions and commercial soundness of other financial institutions; financial institutions are interrelated because of trading, clearing, counterparty or other relationships; defaults by, or even rumors or questions about, one or more financial institutions or financial market utilities, or the financial services industry generally, may lead to market-wide liquidity problems and losses of client, creditor and counterparty confidence and could lead to losses or defaults by other financial institutions, or the Company; integration risks and projected cost savings in connection with acquisitions; the risk of geographic concentration in Colorado, Arizona, Wyoming, California, and Montana; the risk of changes in the economy affecting real estate values and liquidity; the risk in our ability to continue to originate residential real estate loans and sell such loans; risks specific to commercial loans and borrowers; the risk of claims and litigation pertaining to our fiduciary responsibilities; the risk of competition for investment managers and professionals; the risk of fluctuation in the value of our investment securities; the risk of changes in interest rates; and the risk of the adequacy of our allowance for credit losses and the risk in our ability to maintain a strong core deposit base or other low-cost funding sources. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 15, 2024 (“Form 10-K”), and other documents we file with the SEC from time to time. We urge readers of this news release to review the “Risk Factors” section our Form 10-K and any updates to those risk factors set forth in our subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and our other filings with the SEC. Also, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today’s date, or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Contacts:
Financial Profiles, Inc.
Tony Rossi
310-622-8221
MYFW@finprofiles.com
IR@myfw.com
FAQ
What did First Western Financial announce on June 17, 2024?
How many shares will First Western Financial repurchase?
What percentage of its outstanding shares will First Western Financial repurchase?
When did the Board of Directors approve the stock repurchase program?
How long will the stock repurchase program be in effect?
Can the stock repurchase program be suspended or discontinued?
Who approved the stock repurchase program besides the Board of Directors?
What methods will First Western Financial use to repurchase shares?
What factors will influence the timing and number of shares repurchased under the program?
