First Western Reports First Quarter 2025 Financial Results
First Western Financial (NASDAQ: MYFW) reported strong Q1 2025 financial results with net income of $4.2 million, or $0.43 per diluted share, up from $2.7 million in Q4 2024. Net interest income increased to $17.5 million, with net interest margin expanding 16 basis points to 2.61%.
Key highlights include:
- Noninterest-bearing deposits grew 9.1% to $409.7 million
- OREO decreased significantly from $35.9 million to $4.4 million due to property sales
- Non-performing assets improved to 0.59% of total assets
- Book value per share increased to $26.44
The company maintained strong capital positions with the Bank classified as 'well capitalized'. Total loans held for investment remained stable at $2.43 billion, while total deposits slightly increased to $2.52 billion. Assets Under Management decreased to $7.18 billion from $7.32 billion in Q4 2024.
First Western Financial (NASDAQ: MYFW) ha riportato solidi risultati finanziari nel primo trimestre del 2025 con un utile netto di 4,2 milioni di dollari, ovvero 0,43 dollari per azione diluita, in aumento rispetto ai 2,7 milioni di dollari del quarto trimestre 2024. Il reddito netto da interessi è salito a 17,5 milioni di dollari, con un margine netto da interessi che si è ampliato di 16 punti base raggiungendo il 2,61%.
Punti salienti includono:
- I depositi senza interessi sono cresciuti del 9,1% raggiungendo 409,7 milioni di dollari
- Le proprietà in possesso per la vendita (OREO) sono diminuite significativamente da 35,9 milioni a 4,4 milioni di dollari grazie alla vendita di immobili
- Gli attivi non performanti sono migliorati allo 0,59% del totale degli attivi
- Il valore contabile per azione è aumentato a 26,44 dollari
L’azienda ha mantenuto solide posizioni di capitale con la banca classificata come “ben capitalizzata”. I prestiti totali detenuti per investimento sono rimasti stabili a 2,43 miliardi di dollari, mentre i depositi totali sono leggermente aumentati a 2,52 miliardi. Gli Asset Under Management sono diminuiti a 7,18 miliardi dai 7,32 miliardi del quarto trimestre 2024.
First Western Financial (NASDAQ: MYFW) reportó sólidos resultados financieros en el primer trimestre de 2025 con un ingreso neto de 4.2 millones de dólares, o 0.43 dólares por acción diluida, aumentando desde 2.7 millones en el cuarto trimestre de 2024. El ingreso neto por intereses aumentó a 17.5 millones de dólares, con un margen neto de intereses que se expandió 16 puntos básicos hasta 2.61%.
Aspectos destacados incluyen:
- Los depósitos sin intereses crecieron 9.1% hasta 409.7 millones de dólares
- Las propiedades en ejecución (OREO) disminuyeron significativamente de 35.9 millones a 4.4 millones debido a ventas de propiedades
- Los activos en mora mejoraron a 0.59% del total de activos
- El valor contable por acción aumentó a 26.44 dólares
La compañía mantuvo sólidas posiciones de capital con el banco clasificado como "bien capitalizado". Los préstamos totales para inversión se mantuvieron estables en 2.43 mil millones de dólares, mientras que los depósitos totales aumentaron ligeramente a 2.52 mil millones. Los activos bajo administración disminuyeron a 7.18 mil millones desde 7.32 mil millones en el cuarto trimestre de 2024.
First Western Financial (NASDAQ: MYFW)는 2025년 1분기에 순이익 420만 달러, 희석 주당순이익 0.43달러를 기록하며 2024년 4분기 270만 달러에서 크게 증가한 강력한 실적을 발표했습니다. 순이자수익은 1,750만 달러로 증가했으며, 순이자마진은 16베이시스포인트 상승한 2.61%를 기록했습니다.
주요 내용은 다음과 같습니다:
- 무이자 예금이 9.1% 증가하여 4억 970만 달러에 도달
- 부동산 매각으로 인해 보유 부동산(OREO)이 3,590만 달러에서 440만 달러로 크게 감소
- 부실 자산 비율이 총 자산의 0.59%로 개선
- 주당 장부가치가 26.44달러로 상승
회사는 은행이 '우수 자본 상태'로 분류되면서 강력한 자본 상태를 유지했습니다. 투자용 대출 총액은 24억 3천만 달러로 안정적이었고, 총 예금은 소폭 증가하여 25억 2천만 달러를 기록했습니다. 운용 자산(AUM)은 2024년 4분기 73억 2천만 달러에서 71억 8천만 달러로 감소했습니다.
First Western Financial (NASDAQ : MYFW) a annoncé de solides résultats financiers pour le premier trimestre 2025 avec un revenu net de 4,2 millions de dollars, soit 0,43 dollar par action diluée, en hausse par rapport à 2,7 millions au quatrième trimestre 2024. Le revenu net d’intérêts a augmenté pour atteindre 17,5 millions de dollars, la marge nette d’intérêts s’étant élargie de 16 points de base pour atteindre 2,61 %.
Les points clés incluent :
- Les dépôts sans intérêt ont augmenté de 9,1 % pour atteindre 409,7 millions de dollars
- Les biens immobiliers détenus en vue de la vente (OREO) ont fortement diminué, passant de 35,9 millions à 4,4 millions de dollars grâce à des ventes de propriétés
- Les actifs non performants se sont améliorés pour représenter 0,59 % du total des actifs
- La valeur comptable par action a augmenté à 26,44 dollars
L’entreprise a maintenu de solides positions de capital avec la banque classée comme « bien capitalisée ». Les prêts totaux détenus pour investissement sont restés stables à 2,43 milliards de dollars, tandis que les dépôts totaux ont légèrement augmenté à 2,52 milliards. Les actifs sous gestion ont diminué à 7,18 milliards contre 7,32 milliards au quatrième trimestre 2024.
First Western Financial (NASDAQ: MYFW) meldete starke Finanzergebnisse für das erste Quartal 2025 mit einem Nettogewinn von 4,2 Millionen US-Dollar bzw. 0,43 US-Dollar je verwässerter Aktie, gegenüber 2,7 Millionen US-Dollar im vierten Quartal 2024. Der Nettozinsertrag stieg auf 17,5 Millionen US-Dollar, wobei die Nettozinsmarge um 16 Basispunkte auf 2,61 % zulegte.
Wichtige Highlights sind:
- Giroeinlagen ohne Zinsen wuchsen um 9,1 % auf 409,7 Millionen US-Dollar
- OREO (Eigentum aus Zwangsvollstreckungen) sank aufgrund von Immobilienverkäufen deutlich von 35,9 Millionen auf 4,4 Millionen US-Dollar
- Die notleidenden Vermögenswerte verbesserten sich auf 0,59 % der Gesamtaktiva
- Der Buchwert je Aktie stieg auf 26,44 US-Dollar
Das Unternehmen hielt starke Kapitalpositionen, wobei die Bank als „gut kapitalisiert“ eingestuft wurde. Die insgesamt für Investitionen gehaltenen Kredite blieben stabil bei 2,43 Milliarden US-Dollar, während die Einlagen leicht auf 2,52 Milliarden US-Dollar anstiegen. Die verwalteten Vermögenswerte (Assets Under Management) sanken von 7,32 Milliarden im vierten Quartal 2024 auf 7,18 Milliarden US-Dollar.
- Net income increased 55.6% quarter-over-quarter to $4.2 million
- Net interest margin expanded 16 basis points to 2.61%
- Noninterest-bearing deposits grew 9.1% to $409.7 million
- Non-performing assets improved significantly to 0.59% of total assets
- Efficiency ratio improved to 79.16% from 80.74%
- Assets Under Management decreased to $7.18 billion from $7.32 billion in Q4 2024
- Total loans remained flat quarter-over-quarter at $2.43 billion
- Total deposits showed minimal growth of 0.4% from Q4 2024
Insights
First Western shows strong Q1 2025 results with significant profit growth, improved margins, and major reduction in problem assets.
First Western Financial's Q1 2025 results demonstrate substantial improvement in profitability, with net income available to common shareholders reaching
The bank's net interest margin expanded by
A critical turning point appears in asset quality metrics. The bank successfully resolved its two largest OREO (Other Real Estate Owned) properties, dramatically reducing the nonperforming asset ratio from
Operational efficiency continues to improve with the efficiency ratio decreasing to
Capital levels remain robust with consolidated Tier 1 capital to risk-weighted assets at
While total loans remained flat at
First Quarter 2025 Summary
- Net income available to common shareholders of
$4.2 million in Q1 2025, compared to$2.7 million in Q4 2024 - Diluted earnings per share of
$0.43 in Q1 2025, compared to$0.28 in Q4 2024 - Net interest income of
$17.5 million in Q1 2025, compared to$16.9 million in Q4 2024 - Net interest margin increased 16 basis points from
2.45% in Q4 2024 to2.61% in Q1 2025 - Other real estate owned ("OREO") decreased
$31.5 million from$35.9 million in Q4 2024 to$4.4 million in Q1 2025 due to the sale of two properties for a net gain of$0.5 million - Noninterest-bearing deposits increased
9.1% from$375.6 million as of Q4 2024 to$409.7 million as of Q1 2025
DENVER, April 24, 2025 (GLOBE NEWSWIRE) -- First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the first quarter ended March 31, 2025.
Net income available to common shareholders was
Scott C. Wylie, CEO of First Western, commented, “As expected, we generated a significant improvement in our level of profitability in the first quarter. We saw positive trends in many areas including an expansion in our net interest margin, a higher level of non-interest income, an increase in noninterest-bearing deposits, solid loan production, and well managed expenses. We also saw general stability in asset quality while having a substantial reduction in our nonperforming assets following the successful resolution of our two largest OREO properties, which were sold for a net gain.
“We expect to see a continuation of the positive trends we are seeing, while we also redeploy the cash from the sale of our two largest OREO properties into interest-earning assets. We believe this will continue to result in solid financial performance for our shareholders as we move through the year,” said Mr. Wylie.
| For the Three Months Ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| (Dollars in thousands, except per share data) | 2025 | 2024 | 2024 | ||||||||
| Earnings Summary | |||||||||||
| Net interest income | $ | 17,453 | $ | 16,908 | $ | 16,070 | |||||
| Less: Provision (release) for credit losses | 80 | (974 | ) | 72 | |||||||
| Total non-interest income | 7,345 | 6,459 | 7,277 | ||||||||
| Total non-interest expense | 19,361 | 20,427 | 19,696 | ||||||||
| Income before income taxes | 5,357 | 3,914 | 3,579 | ||||||||
| Income tax expense | 1,172 | 1,166 | 1,064 | ||||||||
| Net income available to common shareholders | 4,185 | 2,748 | 2,515 | ||||||||
| Basic earnings per common share | 0.43 | 0.28 | 0.26 | ||||||||
| Diluted earnings per common share | 0.43 | 0.28 | 0.26 | ||||||||
| Return on average assets (annualized) | 0.59 | % | 0.38 | % | 0.35 | % | |||||
| Return on average shareholders' equity (annualized) | 6.63 | 4.39 | 4.10 | ||||||||
| Return on tangible common equity (annualized)(1) | 7.44 | 4.98 | 4.71 | ||||||||
| Net interest margin | 2.61 | 2.45 | 2.34 | ||||||||
| Efficiency ratio(1) | 79.16 | 80.74 | 83.68 | ||||||||
_____________________
| (1) | Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure. |
Operating Results for the First Quarter 2025
Revenue
Total income before non-interest expense was
| (1) | Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure. |
Net Interest Income
Net interest income for the first quarter of 2025 was
Net Interest Margin
Net interest margin for the first quarter of 2025 increased 16 basis points to
The yield on interest-earning assets increased 4 basis points to
Relative to the first quarter of 2024, net interest margin increased 27 basis points from
Non-interest Income
Non-interest income for the first quarter of 2025 was
Relative to the first quarter of 2024, non-interest income increased slightly, driven primarily by increases in Net gain on other real estate owned and Net gain on loans accounted for under the fair value option, offset partially by decreases in Trust and investment management fees and Bank fees.
Non-interest Expense
Non-interest expense for the first quarter of 2025 was
Relative to the first quarter of 2024, non-interest expense decreased
The Company’s efficiency ratio(1) was
| (1) | Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure. |
Income Taxes
The Company recorded Income tax expense of
Loans
Total loans held for investment of
Deposits
Total deposits were
Borrowings
Federal Home Loan Bank (“FHLB”) and Federal Reserve borrowings were a combined
Subordinated notes were
Assets Under Management
Assets Under Management (“AUM”) decreased to
Credit Quality
Non-performing assets totaled
Non-performing loans totaled
During the first quarter of 2025, the Company recorded provision expense of
Capital
As of March 31, 2025, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of March 31, 2025, the Bank was classified as “well capitalized,” as summarized in the following table:
| March 31, | ||
| 2025 | ||
| Consolidated Capital | ||
| Tier 1 capital to risk-weighted assets | 10.35 | % |
| Common Equity Tier 1 ("CET1") to risk-weighted assets | 10.35 | |
| Total capital to risk-weighted assets | 13.15 | |
| Tier 1 capital to average assets | 8.12 | |
| Bank Capital | ||
| Tier 1 capital to risk-weighted assets | 11.76 | % |
| CET1 to risk-weighted assets | 11.76 | |
| Total capital to risk-weighted assets | 12.52 | |
| Tier 1 capital to average assets | 9.24 | |
Book value per common share increased
Tangible book value per common share(1) increased
| (1) | Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure. |
Conference Call, Webcast and Slide Presentation
The Company will host a conference call and webcast at 10:00 a.m. MT/ 12:00 p.m. ET on Friday, April 25, 2025. Telephone access: https://register-conf.media-server.com/register/BI019349e043a94dc394d0159a3c41719d.
A slide presentation relating to the first quarter 2025 results will be accessible prior to the scheduled conference call. The slide presentation and webcast of the conference call can be accessed on the Events and Presentations page of the Company’s investor relations website at https://myfw.gcs-web.com.
About First Western
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.
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include “Tangible Common Equity,” “Tangible Common Book Value per Share,” “Return on Tangible Common Equity,” “Efficiency Ratio,” “Gross Revenue,” and “Allowance for Credit Losses to Adjusted Loans". The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies. Reconciliation of non-GAAP financial measures to GAAP financial measures are provided at the end of this press release.
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 debt securities; the risk of changes in interest rates; the risk of the adequacy of our allowance for credit losses; the risk in our ability to maintain a strong core deposit base or other low-cost funding sources; the risk of weak economic conditions and global trade, including the imposition of tariffs; the risk that legislative or regulatory actions may have a significant adverse effect on our operations. 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 7, 2025 (“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
| First Western Financial, Inc. Condensed Consolidated Statements of Income (unaudited) | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | December 31, | March 31, | ||||||||
| (dollars in thousands, except per share amounts) | 2025 | 2024 | 2024 | |||||||
| Interest and dividend income: | ||||||||||
| Loans, including fees | $ | 34,068 | $ | 34,287 | $ | 35,139 | ||||
| Loans accounted for under the fair value option | 111 | 118 | 209 | |||||||
| Investment securities | 681 | 696 | 603 | |||||||
| Interest-bearing deposits in other financial institutions | 2,221 | 2,879 | 2,352 | |||||||
| Dividends, restricted stock | 128 | 129 | 95 | |||||||
| Total interest and dividend income | 37,209 | 38,109 | 38,398 | |||||||
| Interest expense: | ||||||||||
| Deposits | 18,516 | 19,921 | 20,622 | |||||||
| Other borrowed funds | 1,240 | 1,280 | 1,706 | |||||||
| Total interest expense | 19,756 | 21,201 | 22,328 | |||||||
| Net interest income | 17,453 | 16,908 | 16,070 | |||||||
| Less: Provision (release) for credit losses | 80 | (974 | ) | 72 | ||||||
| Net interest income, after provision (release) for credit losses | 17,373 | 17,882 | 15,998 | |||||||
| Non-interest income: | ||||||||||
| Trust and investment management fees | 4,677 | 4,660 | 4,930 | |||||||
| Net gain on mortgage loans | 1,067 | 377 | 1,264 | |||||||
| Net gain (loss) on loans held for sale | 222 | (222 | ) | 117 | ||||||
| Bank fees | 422 | 426 | 891 | |||||||
| Risk management and insurance fees | 259 | 1,139 | 49 | |||||||
| Income on company-owned life insurance | 110 | 112 | 105 | |||||||
| Net gain (loss) on loans accounted for under the fair value option | 6 | (149 | ) | (302 | ) | |||||
| Net gain on other real estate owned | 459 | — | — | |||||||
| Unrealized gain (loss) recognized on equity securities | 11 | (49 | ) | (6 | ) | |||||
| Other | 112 | 165 | 229 | |||||||
| Total non-interest income | 7,345 | 6,459 | 7,277 | |||||||
| Total income before non-interest expense | 24,718 | 24,341 | 23,275 | |||||||
| Non-interest expense: | ||||||||||
| Salaries and employee benefits | 11,480 | 11,237 | 11,267 | |||||||
| Occupancy and equipment | 2,210 | 2,100 | 1,976 | |||||||
| Professional services | 1,704 | 1,821 | 2,411 | |||||||
| Technology and information systems | 1,078 | 1,073 | 1,010 | |||||||
| Data processing | 1,122 | 1,029 | 948 | |||||||
| Marketing | 216 | 397 | 194 | |||||||
| Amortization of other intangible assets | 51 | 56 | 57 | |||||||
| Other | 1,500 | 2,714 | 1,833 | |||||||
| Total non-interest expense | 19,361 | 20,427 | 19,696 | |||||||
| Income before income taxes | 5,357 | 3,914 | 3,579 | |||||||
| Income tax expense | 1,172 | 1,166 | 1,064 | |||||||
| Net income available to common shareholders | $ | 4,185 | $ | 2,748 | $ | 2,515 | ||||
| Earnings per common share: | ||||||||||
| Basic | $ | 0.43 | $ | 0.28 | $ | 0.26 | ||||
| Diluted | 0.43 | 0.28 | 0.26 | |||||||
| First Western Financial, Inc. Condensed Consolidated Balance Sheets (unaudited) | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| (dollars in thousands) | 2025 | 2024 | 2024 | ||||||||
| Assets | |||||||||||
| Cash and cash equivalents: | |||||||||||
| Cash and due from banks | $ | 15,924 | $ | 9,770 | $ | 8,136 | |||||
| Interest-bearing deposits in other financial institutions | 255,658 | 226,271 | 249,753 | ||||||||
| Total cash and cash equivalents | 271,582 | 236,041 | 257,889 | ||||||||
| Held-to-maturity debt securities (fair value of | 73,775 | 75,724 | 72,303 | ||||||||
| Correspondent bank stock, at cost | 5,968 | 5,864 | 4,461 | ||||||||
| Mortgage loans held for sale, at fair value | 10,557 | 25,455 | 10,470 | ||||||||
| Loans held for sale, at fair value | — | 251 | — | ||||||||
| Loans (includes | 2,425,367 | 2,425,565 | 2,475,524 | ||||||||
| Allowance for credit losses | (17,956 | ) | (18,330 | ) | (24,630 | ) | |||||
| Loans, net | 2,407,411 | 2,407,235 | 2,450,894 | ||||||||
| Premises and equipment, net | 24,554 | 24,129 | 24,869 | ||||||||
| Accrued interest receivable | 10,623 | 10,364 | 11,919 | ||||||||
| Accounts receivable | 4,505 | 4,763 | 4,980 | ||||||||
| Other receivables | 4,608 | 5,710 | 5,254 | ||||||||
| Other real estate owned, net | 4,385 | 35,929 | — | ||||||||
| Goodwill and other intangible assets, net | 31,576 | 31,627 | 31,797 | ||||||||
| Deferred tax assets, net | 2,856 | 3,079 | 5,695 | ||||||||
| Company-owned life insurance | 17,071 | 16,961 | 16,635 | ||||||||
| Other assets | 36,829 | 35,905 | 35,051 | ||||||||
| Total assets | $ | 2,906,300 | $ | 2,919,037 | $ | 2,932,217 | |||||
| Liabilities | |||||||||||
| Deposits: | |||||||||||
| Noninterest-bearing | $ | 409,696 | $ | 375,603 | $ | 434,236 | |||||
| Interest-bearing | 2,105,701 | 2,138,606 | 2,097,734 | ||||||||
| Total deposits | 2,515,397 | 2,514,209 | 2,531,970 | ||||||||
| Borrowings: | |||||||||||
| Federal Home Loan Bank and Federal Reserve borrowings | 51,612 | 57,038 | 69,484 | ||||||||
| Subordinated notes | 44,621 | 52,565 | 52,397 | ||||||||
| Accrued interest payable | 2,371 | 1,995 | 2,415 | ||||||||
| Other liabilities | 35,744 | 40,908 | 30,423 | ||||||||
| Total liabilities | 2,649,745 | 2,666,715 | 2,686,689 | ||||||||
| Shareholders’ Equity | |||||||||||
| Total shareholders’ equity | 256,555 | 252,322 | 245,528 | ||||||||
| Total liabilities and shareholders’ equity | $ | 2,906,300 | $ | 2,919,037 | $ | 2,932,217 | |||||
| First Western Financial, Inc. Consolidated Financial Summary (unaudited) | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| (dollars in thousands) | 2025 | 2024 | 2024 | ||||||||
| Loan Portfolio | |||||||||||
| Cash, Securities, and Other(1) | $ | 101,078 | $ | 120,005 | $ | 151,178 | |||||
| Consumer and Other | 16,688 | 17,333 | 18,556 | ||||||||
| Construction and Development | 291,133 | 315,686 | 333,284 | ||||||||
| 1-4 Family Residential | 971,179 | 960,354 | 910,129 | ||||||||
| Non-Owner Occupied CRE | 636,820 | 614,384 | 562,862 | ||||||||
| Owner Occupied CRE | 182,417 | 173,223 | 194,338 | ||||||||
| Commercial and Industrial | 223,197 | 220,501 | 297,573 | ||||||||
| Total | 2,422,512 | 2,421,486 | 2,467,920 | ||||||||
| Loans accounted for under the fair value option | 6,280 | 7,508 | 12,276 | ||||||||
| Total loans held for investment | 2,428,792 | 2,428,994 | 2,480,196 | ||||||||
| Deferred (fees) costs and unamortized premiums/(unaccreted discounts), net(2) | (3,425 | ) | (3,429 | ) | (4,672 | ) | |||||
| Loans (includes | $ | 2,425,367 | $ | 2,425,565 | $ | 2,475,524 | |||||
| Mortgage loans held for sale | 10,557 | 25,455 | 10,470 | ||||||||
| Loans held for sale | — | 251 | — | ||||||||
| Deposit Portfolio | |||||||||||
| Money market deposit accounts | $ | 1,566,737 | $ | 1,513,605 | $ | 1,503,598 | |||||
| Time deposits | 379,533 | 471,415 | 442,834 | ||||||||
| Interest checking accounts | 144,980 | 139,374 | 132,415 | ||||||||
| Savings accounts | 14,451 | 14,212 | 18,887 | ||||||||
| Total interest-bearing deposits | 2,105,701 | 2,138,606 | 2,097,734 | ||||||||
| Noninterest-bearing accounts | 409,696 | 375,603 | 434,236 | ||||||||
| Total deposits | $ | 2,515,397 | $ | 2,514,209 | $ | 2,531,970 | |||||
____________________
| (1) | Includes PPP loans of |
| (2) | Includes fair value adjustments on loans held for investment accounted for under the fair value option. |
| First Western Financial, Inc. Consolidated Financial Summary (unaudited) (continued) | |||||||||||
| As of or for the Three Months Ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| (dollars in thousands) | 2025 | 2024 | 2024 | ||||||||
| Average Balance Sheets | |||||||||||
| Assets | |||||||||||
| Interest-earning assets: | |||||||||||
| Interest-bearing deposits in other financial institutions | $ | 198,294 | $ | 236,152 | $ | 177,523 | |||||
| Debt securities | 75,592 | 77,464 | 74,666 | ||||||||
| Correspondent bank stock | 5,806 | 5,738 | 4,451 | ||||||||
| Gross loans | 2,407,482 | 2,386,070 | 2,490,300 | ||||||||
| Mortgage loans held for sale | 13,593 | 26,623 | 6,752 | ||||||||
| Loans held at fair value | 6,846 | 8,136 | 13,134 | ||||||||
| Total interest-earning assets | 2,707,613 | 2,740,183 | 2,766,826 | ||||||||
| Noninterest-earning assets | 145,479 | 161,783 | 100,170 | ||||||||
| Total assets | $ | 2,853,092 | $ | 2,901,966 | $ | 2,866,996 | |||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Interest-bearing liabilities: | |||||||||||
| Interest-bearing deposits | $ | 2,090,505 | $ | 2,095,204 | $ | 2,008,246 | |||||
| FHLB and Federal Reserve borrowings | 51,885 | 54,428 | 92,195 | ||||||||
| Subordinated notes | 52,495 | 52,528 | 52,360 | ||||||||
| Total interest-bearing liabilities | 2,194,885 | 2,202,160 | 2,152,801 | ||||||||
| Noninterest-bearing liabilities: | |||||||||||
| Noninterest-bearing deposits | 363,922 | 403,433 | 446,457 | ||||||||
| Other liabilities | 41,656 | 45,889 | 22,250 | ||||||||
| Total noninterest-bearing liabilities | 405,578 | 449,322 | 468,707 | ||||||||
| Total shareholders’ equity | 252,629 | 250,484 | 245,488 | ||||||||
| Total liabilities and shareholders’ equity | $ | 2,853,092 | $ | 2,901,966 | $ | 2,866,996 | |||||
| Yields/Cost of funds (annualized) | |||||||||||
| Interest-bearing deposits in other financial institutions | 4.54 | % | 4.85 | % | 5.33 | % | |||||
| Debt securities | 3.65 | 3.57 | 3.25 | ||||||||
| Correspondent bank stock | 8.94 | 8.94 | 8.58 | ||||||||
| Loans | 5.71 | 5.65 | 5.66 | ||||||||
| Loan held at fair value | 6.58 | 5.77 | 6.40 | ||||||||
| Mortgage loans held for sale | 5.46 | 6.02 | 6.79 | ||||||||
| Total interest-earning assets | 5.57 | 5.53 | 5.58 | ||||||||
| Interest-bearing deposits | 3.59 | 3.78 | 4.13 | ||||||||
| Total deposits | 3.06 | 3.17 | 3.38 | ||||||||
| FHLB and Federal Reserve borrowings | 3.92 | 3.96 | 4.23 | ||||||||
| Subordinated notes | 5.70 | 5.59 | 5.66 | ||||||||
| Total interest-bearing liabilities | 3.65 | 3.83 | 4.17 | ||||||||
| Net interest margin | 2.61 | 2.45 | 2.34 | ||||||||
| Net interest rate spread | 1.92 | 1.70 | 1.41 | ||||||||
| First Western Financial, Inc. Consolidated Financial Summary (unaudited) (continued) | |||||||||||
| As of or for the Three Months Ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| (dollars in thousands, except share and per share amounts) | 2025 | 2024 | 2024 | ||||||||
| Asset Quality | |||||||||||
| Non-performing loans | $ | 12,758 | $ | 13,052 | $ | 46,044 | |||||
| Non-performing assets | 17,143 | 48,981 | 46,044 | ||||||||
| Net charge-offs (recoveries) | 566 | (270 | ) | — | |||||||
| Non-performing loans to total loans | 0.53 | % | 0.54 | % | 1.86 | % | |||||
| Non-performing assets to total assets | 0.59 | 1.68 | 1.57 | ||||||||
| Allowance for credit losses to non-performing loans | 140.74 | 140.44 | 53.49 | ||||||||
| Allowance for credit losses to total loans | 0.74 | 0.76 | 1.00 | ||||||||
| Allowance for credit losses to adjusted loans(1) | 0.74 | 0.76 | 1.00 | ||||||||
| Net charge-offs (recoveries) to average loans | 0.02 | (0.01 | ) | — | |||||||
| Assets Under Management | $ | 7,176,624 | $ | 7,321,147 | $ | 7,141,453 | |||||
| Market Data | |||||||||||
| Book value per share at period end | $ | 26.44 | $ | 26.10 | $ | 25.52 | |||||
| Tangible book value per common share(1) | 23.18 | 22.83 | 22.21 | ||||||||
| Weighted average outstanding shares, basic | 9,704,419 | 9,665,621 | 9,621,309 | ||||||||
| Weighted average outstanding shares, diluted | 9,798,591 | 9,794,797 | 9,710,764 | ||||||||
| Shares outstanding at period end | 9,704,320 | 9,667,142 | 9,621,309 | ||||||||
| Consolidated Capital | |||||||||||
| Tier 1 capital to risk-weighted assets | 10.35 | % | 10.07 | % | 9.77 | % | |||||
| CET1 to risk-weighted assets | 10.35 | 10.07 | 9.77 | ||||||||
| Total capital to risk-weighted assets | 13.15 | 13.12 | 13.15 | ||||||||
| Tier 1 capital to average assets | 8.12 | 7.88 | 7.73 | ||||||||
| Bank Capital | |||||||||||
| Tier 1 capital to risk-weighted assets | 11.76 | % | 11.41 | % | 11.00 | % | |||||
| CET1 to risk-weighted assets | 11.76 | 11.41 | 11.00 | ||||||||
| Total capital to risk-weighted assets | 12.52 | 12.10 | 12.02 | ||||||||
| Tier 1 capital to average assets | 9.24 | 8.94 | 8.70 | ||||||||
________________________
| (1) | Represents a Non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure. |
| First Western Financial, Inc. Consolidated Financial Summary (unaudited) (continued) | |||||||||||
| Reconciliations of Non-GAAP Financial Measures | |||||||||||
| As of or for the Three Months Ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| (dollars in thousands, except share and per share amounts) | 2025 | 2024 | 2024 | ||||||||
| Tangible Common | |||||||||||
| Total shareholders' equity | $ | 256,555 | $ | 252,322 | $ | 245,528 | |||||
| Less: goodwill and other intangibles, net | 31,576 | 31,627 | 31,797 | ||||||||
| Tangible common equity | $ | 224,979 | $ | 220,695 | $ | 213,731 | |||||
| Common shares outstanding, end of period | 9,704,320 | 9,667,142 | 9,621,309 | ||||||||
| Tangible common book value per share | $ | 23.18 | $ | 22.83 | $ | 22.21 | |||||
| Net income available to common shareholders | 4,185 | 2,748 | 2,515 | ||||||||
| Return on tangible common equity (annualized) | 7.44 | % | 4.98 | % | 4.71 | % | |||||
| Efficiency | |||||||||||
| Non-interest expense | $ | 19,361 | $ | 20,427 | $ | 19,696 | |||||
| Less: OREO expenses and write-downs | (80 | ) | 1,222 | — | |||||||
| Adjusted non-interest expense | $ | 19,441 | $ | 19,205 | $ | 19,696 | |||||
| Total income before non-interest expense | $ | 24,718 | $ | 24,341 | $ | 23,275 | |||||
| Less: unrealized gain (loss) recognized on equity securities | 11 | (49 | ) | (6 | ) | ||||||
| Less: net gain (loss) on loans accounted for under the fair value option | 6 | (149 | ) | (302 | ) | ||||||
| Less: net gain (loss) on loans held for sale | 222 | (222 | ) | 117 | |||||||
| Plus: provision (release) for credit losses | 80 | (974 | ) | 72 | |||||||
| Gross revenue | $ | 24,559 | $ | 23,787 | $ | 23,538 | |||||
| Efficiency ratio | 79.16 | % | 80.74 | % | 83.68 | % | |||||
FAQ
What was First Western's (MYFW) earnings per share in Q1 2025?
How much did First Western's (MYFW) net interest margin improve in Q1 2025?
What was the impact of OREO property sales on First Western's (MYFW) Q1 2025 results?
How did First Western's (MYFW) noninterest-bearing deposits perform in Q1 2025?
What was First Western's (MYFW) efficiency ratio in Q1 2025?
