Financial Performance - Net income available to common shareholders was $42 million, resulting in diluted earnings per share of $043[8] - Net interest income increased to $175 million, compared to $169 million in the prior quarter, a 36% improvement[8, 42] - Gross revenue increased by 34% from the prior quarter[37] - Tangible book value per share increased by 16% to $2318[14] Loan Portfolio - New loan production in 1Q25 reached $708 million, with a focus on relationship-based lending[23] - The average rate on new loan production was 689%, higher than the average rate of loans paying off[23] - Total loans held for investment remained relatively flat compared to the prior quarter[23] Deposits and Assets Under Management - Total deposits increased by 04% from $251 billion in 4Q24 to $252 billion in 1Q25[28] - Noninterest-bearing deposits increased by 90% from $376 million in 4Q24 to $410 million in 1Q25[28] - Total assets under management decreased by 20% during the quarter to $718 billion[33] Asset Quality and Expenses - Non-performing assets decreased by $318 million to $171 million due to the sale of two OREO properties[57] - The efficiency ratio improved from 8074% in 4Q24 to 7916% in 1Q25, a 452% improvement from 1Q24[52]

Financial Data and Key Metrics Changes - The company generated net income of $4.2 million or $0.43 per diluted share in Q1 2025, representing substantial increases from the prior quarter [11] - Tangible book value per share increased by 1.6% this quarter [12] - Gross revenue increased by 3.4% from the prior quarter, driven by increases in both net interest income and non-interest income [19] Business Line Data and Key Metrics Changes - New loan production was $71 million in Q1 2025, offset by $72 million in loan payoffs, resulting in a slight decrease in total loans [14] - The average rate on new loan production was 6.89%, higher than the average rate on loan payoffs, contributing positively to the loan portfolio's yield [15] - Total deposits were up slightly from the end of the prior quarter, with inflows of non-interest bearing deposits from existing clients and new relationships [16] Market Data and Key Metrics Changes - The company saw a $144 million decrease in assets under management (AUM) in Q1 2025, primarily due to net withdrawals in fixed fee accounts [18] - AUM increased nearly 1% over the past year despite the quarterly decrease [18] Company Strategy and Development Direction - The company is focused on improving profitability and asset quality, with a disciplined approach to loan production and pricing [9][28] - There is a priority on growing the trust investment management business, with new leadership added to enhance contributions to future growth [30][80] - The company plans to redeploy cash from the sale of OREO properties into interest-earning assets to support loan production [29] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about continued positive trends in asset quality, net interest margin, and overall efficiencies [28] - There is caution regarding potential impacts on loan demand due to macroeconomic uncertainties, including tariffs [30] - The company aims to achieve a return on assets (ROA) target of 1% as it continues to grow and improve profitability [61] Other Important Information - The company successfully resolved two largest OREO properties, resulting in a net gain [10] - Non-interest expense decreased by $1 million from the prior quarter, primarily due to a write-down recorded in the previous quarter [23] Q&A Session Summary Question: Can you isolate any interest recoveries on a dollar basis? - The company saw a higher amortized loan fee through the quarter, approximately $200,000 higher than typical [37][39] Question: What is the spot rate on deposits at the end of March? - The spot rate was 2.98%, with a cost of funds around 3.05% [41] Question: What is the outlook for loan payoffs going forward? - Historically, payoffs have been consistent at about $100 million per quarter, with expectations for similar trends moving forward [67] Question: How quickly do you expect new hires to impact the bottom line? - It typically takes time for new hires to settle in, but a positive impact is expected over the next two to three quarters [100]

Financial Data and Key Metrics Changes - The company generated net income of $4,200,000 or $0.43 per diluted share in the quarter, representing substantial increases from the prior quarter [9] - Tangible book value per share increased by 1.6% this quarter [9] - Gross revenue increased by 3.4% from the prior quarter, driven by increases in both net interest income and noninterest income [14] Business Line Data and Key Metrics Changes - New loan production was $71,000,000 in the first quarter, offset by $72,000,000 in loan payoffs, resulting in a slight decrease in total loans [11] - The average rate on new loan production was 6.89%, higher than the average rate on loan payoffs, contributing positively to the loan portfolio yield [11] - Total deposits were up slightly from the end of the prior quarter, with inflows of noninterest bearing deposits from existing clients and new relationships [12] Market Data and Key Metrics Changes - The company saw a $144,000,000 decrease in assets under management in the first quarter, primarily due to net withdrawals in fixed fee accounts [13] - The company maintained a conservative approach to new loan production, focusing on disciplined underwriting and pricing criteria [6] Company Strategy and Development Direction - The company aims to grow its Trust Investment Management business, having added a new Head of Wealth Planning from Goldman Sachs [21] - The management is focused on improving profitability and operational efficiency, with expectations for continued positive trends in asset quality and net interest margin [20] Management Comments on Operating Environment and Future Outlook - Management expressed that while profitability is improving, they are not satisfied with the current performance level and are focused on further enhancements [20] - There is uncertainty regarding the macroeconomic outlook, which could impact loan demand later in the year [20] Other Important Information - The company successfully resolved its two largest OREO properties, resulting in a net gain [9] - Noninterest expense decreased by $1,000,000 from the prior quarter, primarily due to a write-down recorded in the previous quarter [17] Q&A Session Summary Question: Can you isolate any interest recoveries on a dollar basis? - Management noted that there was a $200,000 increase in amortized loan fees that contributed to the uptick in loan yields [26][27] Question: What is the spot rate on deposits and average margin in March? - The spot cost of deposits was 2.98%, and the cost of funds was approximately 3.05% [29] Question: What is the outlook for nonperforming loans? - Management expects to sell one remaining OREO property this year and anticipates collecting on a substantial nonperforming loan through collateral sale [31][32] Question: Will there be a significant increase in expenses due to new hires? - Management indicated that while expenses are expected to remain flat, new hires may take time to become accretive to the bottom line [73] Question: What is the target for return on assets (ROA)? - The target is to return to a 1% ROA, with expectations for improved profitability as the company grows [42][43]

Financial Data and Key Metrics Changes - The company generated net income of $4,200,000 or $0.43 per diluted share in the quarter, representing substantial increases from the prior quarter [8] - Tangible book value per share increased by 1.6% this quarter [8] - Gross revenue increased by 3.4% from the prior quarter, driven by increases in both net interest income and noninterest income [13] Business Line Data and Key Metrics Changes - New loan production was $71,000,000 in the first quarter, offset by $72,000,000 in loan payoffs, resulting in a slight decrease in total loans [10] - The average rate on new loan production was 6.89%, higher than the average rate on loan payoffs, contributing positively to the loan portfolio's yield [10] - Total deposits were up slightly from the end of the prior quarter, with inflows of noninterest bearing deposits from existing clients and new relationships [11] Market Data and Key Metrics Changes - The company saw a $144,000,000 decrease in assets under management in the first quarter, primarily due to net withdrawals in fixed fee accounts [12] - The company continues to experience strong demand for commercial real estate loans as borrowers seek to take advantage of lower property valuations [10] Company Strategy and Development Direction - The company is focused on growing its Trust Investment Management business and has added a new Head of Wealth Planning from Goldman Sachs to enhance this area [20] - The management anticipates continued positive trends in asset quality, net interest margin, and overall efficiencies as processes improve throughout the organization [19] Management Comments on Operating Environment and Future Outlook - Management expressed that while profitability has improved, they are not satisfied with the current performance level and aim to achieve a return on assets (ROA) of 1% [40] - There is uncertainty regarding the macroeconomic outlook, which could impact loan demand later in the year [20] - The company expects to see continued growth in net interest income due to a reduction in the cost of funds and redeployment of cash from the sale of OREO properties [15] Other Important Information - The company successfully resolved its two largest OREO properties, selling them for a net gain [8] - Noninterest expense decreased by $1,000,000 from the prior quarter, primarily due to a write-down recorded in the previous quarter [16] Q&A Session Summary Question: Can you isolate any interest recoveries on a dollar basis? - Management noted that there was a $200,000 increase in amortized loan fees that contributed to the uptick in loan yields [24][25] Question: What is the spot rate on deposits and average margin in March? - The cost of deposits was 2.98%, and the cost of funds was approximately 3.05% [28] Question: What is the outlook for nonperforming loans? - Management expects to sell one remaining OREO property this year and is working through the resolution of a substantial nonperforming loan [30][31] Question: Will there be a significant increase in expenses due to new hires? - Management indicated that while expenses are expected to remain flat, new hires may take time to become accretive to the bottom line [72] Question: How does the origination pipeline relate to new hires? - Management acknowledged that new hires are contributing positively, but the exact impact is difficult to quantify [47] Question: Are there any markets that are softer in terms of loan originations? - Management noted that the front range of Colorado remains healthy, while resort communities and newer markets like Bozeman are performing well [68]

Group 1 - First Western reported quarterly earnings of $0.43 per share, exceeding the Zacks Consensus Estimate of $0.23 per share, and showing an increase from $0.26 per share a year ago, resulting in an earnings surprise of 86.96% [1] - The company posted revenues of $24.8 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.35%, compared to $23.35 million in the same quarter last year [2] - Over the last four quarters, First Western has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4] - First Western shares have declined approximately 6.5% since the beginning of the year, while the S&P 500 has decreased by 8.6% [3] - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $24.71 million, and for the current fiscal year, it is $1.50 on revenues of $102.18 million [7] Group 3 - The Zacks Industry Rank indicates that the Banks - Midwest sector is currently in the top 10% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this category [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for First Western is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6]

Financial Performance - Net income available to common shareholders was $4.2 million, or $0.43 per diluted share, for Q1 2025, compared to $2.7 million, or $0.28 per diluted share, in Q4 2024[3]. - Non-interest income rose to $7.3 million in Q1 2025, a 12.3% increase from $6.5 million in Q4 2024, primarily due to gains on other real estate owned and mortgage loans[12]. - Total interest and dividend income for the three months ended March 31, 2025, was $37,209,000, compared to $38,109,000 for the previous quarter and $38,398,000 for the same quarter last year[34]. - Net interest income for the three months ended March 31, 2025, was $17,453,000, an increase from $16,908,000 in the previous quarter and $16,070,000 in the same quarter last year[34]. - Basic and diluted earnings per common share for the three months ended March 31, 2025, were both $0.43, up from $0.28 in the previous quarter and $0.26 in the same quarter last year[34]. - The company reported net income available to common shareholders of $4,185 thousand for the three months ended March 31, 2025, compared to $2,748 thousand in the previous quarter[44]. Asset Quality - Non-performing assets decreased to $17.1 million, or 0.59% of total assets, as of March 31, 2025, down from $49.0 million, or 1.68% of total assets, at the end of Q4 2024[23]. - Non-performing loans decreased to $12,758 thousand, down from $13,052 thousand as of December 31, 2024, indicating an improvement in asset quality[42]. - The allowance for credit losses to total loans ratio was 0.74% as of March 31, 2025, slightly down from 0.76% as of December 31, 2024[42]. Capital and Efficiency - The Tier 1 capital to risk-weighted assets ratio was 10.35% as of March 31, 2025, indicating strong capital levels[26]. - The efficiency ratio improved to 79.2% in Q1 2025, compared to 80.7% in Q4 2024 and 83.7% in Q1 2024[15]. - The efficiency ratio improved to 79.16% for the three months ended March 31, 2025, compared to 80.74% in the previous quarter[44]. - Return on tangible common equity (annualized) increased to 7.44% for the three months ended March 31, 2025, up from 4.98% in the previous quarter[44]. Deposits and Loans - Total deposits were $2.52 billion as of March 31, 2025, reflecting a 0.4% increase from $2.51 billion as of December 31, 2024[19]. - Total loans held for investment remained flat at $2.43 billion as of March 31, 2025, compared to December 31, 2024[17]. - Total loans held for investment increased to $2,480,196 thousand as of March 31, 2025, up from $2,428,994 thousand as of December 31, 2024, reflecting a growth of 2.1%[38]. - Total deposits reached $2,531,970 thousand as of March 31, 2025, compared to $2,514,209 thousand as of December 31, 2024, representing a slight increase of 0.7%[40]. Book Value - Book value per common share increased 1.3% from $26.10 as of December 31, 2024, to $26.44 as of March 31, 2025[26]. - Tangible book value per common share increased 1.6% from $22.83 as of December 31, 2024, to $23.18 as of March 31, 2025, and increased 4.4% from $22.21 as of March 31, 2024[27]. Other Information - The company expects to continue positive trends and redeploy cash from the sale of OREO properties into interest-earning assets[5]. - The company will host a conference call and webcast on April 25, 2025, at 10:00 a.m. MT/12:00 p.m. ET to discuss the first quarter 2025 results[27]. - The company operates in Colorado, Arizona, Wyoming, California, and Montana, providing a fully integrated suite of wealth management services[29]. - Total assets as of March 31, 2025, were $2,906,300,000, a decrease from $2,919,037,000 as of December 31, 2024, and $2,932,217,000 as of March 31, 2024[36]. - Total non-interest expense for the three months ended March 31, 2025, was $19,361,000, a decrease from $20,427,000 in the previous quarter and an increase from $19,696,000 in the same quarter last year[34]. - Assets under management decreased to $7,176,624 thousand as of March 31, 2025, down from $7,321,147 thousand as of December 31, 2024[42].

First Quarter 2025 Summary Net income available to common shareholders of $4.2 million in Q1 2025, compared to $2.7 million in Q4 2024Diluted earnings per share of $0.43 in Q1 2025, compared to $0.28 in Q4 2024Net interest income of $17.5 million in Q1 2025, compared to $16.9 million in Q4 2024Net interest margin increased 16 basis points from 2.45% in Q4 2024 to 2.61% in Q1 2025Other 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 ...

DENVER, April 04, 2025 (GLOBE NEWSWIRE) -- First Western Financial, Inc. (NASDAQ: MYFW), a financial services holding company headquartered in Denver, Colorado (“First Western”), announced today that it will release financial results for its first quarter ended March 31, 2025 after the markets close on Thursday, April 24, 2025. Management will hold a conference call at 10:00 a.m. Mountain Time/12:00 p.m. Eastern Time on Friday, April 25, 2025, to discuss First Western’s financial results. Analysts and inves ...

DENVER, April 04, 2025 (GLOBE NEWSWIRE) -- First Western Financial, Inc. (NASDAQ:MYFW), a financial services holding company headquartered in Denver, Colorado ("First Western"), announced today that it will release financial results for its first quarter ended March 31, 2025 after the markets close on Thursday, April 24, 2025. Management will hold a conference call at 10:00 a.m. Mountain Time/12:00 p.m. Eastern Time on Friday, April 25, 2025, to discuss First Western's financial results. Analysts and invest ...

Financial Performance - For the year ended December 31, 2024, the company reported net income available to common shareholders of $8.5 million, a 63.5% increase from $5.2 million in 2023[303]. - Net income for 2024 increased to $8,473,000, up from $5,225,000 in 2023, representing a 62.5% year-over-year growth[472]. - Earnings per common share (basic) increased to $0.88 in 2024 from $0.55 in 2023, a 60% increase[472]. - Total comprehensive income for 2024 was $8,893,000, compared to $5,544,000 in 2023, representing a 60.5% increase[472]. Revenue and Income Sources - Total revenues of $90.1 million and $7.32 billion in assets under management (AUM)[291]. - Non-interest income increased by $5.8 million in 2024, driven by higher net gains on mortgage loans and increased risk management and insurance fees[303]. - Non-interest income increased to $27,680,000 in 2024, up from $21,948,000 in 2023, reflecting a 26.2% growth[469]. - Total interest and dividend income rose to $152,651,000 in 2024, compared to $145,558,000 in 2023, marking a 4.5% increase[469]. Interest Income and Expenses - Net interest income before provision for credit losses was $64.3 million for 2024, a decrease of 9.6% compared to 2023, primarily due to a $174.2 million increase in average interest-bearing deposit balances[304]. - The company's net interest margin for 2024 was 2.37%, down from 2.62% in 2023, while the net interest spread decreased from 1.71% to 1.50%[304]. - Average loan yield increased to 5.70% in 2024 from 5.43% in 2023, attributed to elevated interest rates impacting new loan production[305]. - Net interest income after provision for credit losses was $62,391,000 in 2024, compared to $60,750,000 in 2023, a 2.7% increase[469]. Assets and Liabilities - Total assets as of December 31, 2024, were $2.92 billion, with total revenues of $90.1 million and $7.32 billion in assets under management (AUM)[291]. - The company reported a total of $2.85 billion in assets as of December 31, 2024, up from $2.82 billion in 2023[8][10]. - Total deposits decreased by $14.8 million, or 0.6%, to $2.51 billion as of December 31, 2024, primarily driven by operating account fluctuations and clients using liquidity for strategic investments[341]. - Cash and cash equivalents decreased by $18.401 million, or 7.2%, to $236.041 million as of December 31, 2024[337]. Credit Losses and Risk Management - The provision for credit losses recorded for the year ended December 31, 2024 was $1.9 million, a significant decrease from $10.4 million in 2023, attributed to $9.0 million of net charge-offs[12][13]. - The total allowance for credit losses at the end of 2024 was $18.33 million, down from $23.93 million at the end of 2023, reflecting a decrease in expected credit losses[392]. - The allowance for credit losses to total loans ratio decreased to 0.76% in 2024 from 0.95% in 2023, indicating a reduction in risk[392]. - The company maintains a credit management program to mitigate credit risk, with a focus on early identification and management of problem loans[12][13]. Operational Expenses - The increase in non-interest expense was primarily due to higher operational costs related to non-performing asset workouts and technology enhancements[307]. - Total non-interest expense increased by $2.855 million, or 3.8%, to $78.492 million for the year ended December 31, 2024, compared to $75.637 million in 2023[321]. - Non-interest expense rose by 3.8% to $78.5 million, driven by operational costs related to OREO write-downs and technology enhancements[20]. Capital and Regulatory Compliance - The company has adopted the Basel III regulatory capital framework, exceeding the current well-capitalized regulatory requirements as of December 31, 2024[302]. - The Bank was classified as "well capitalized" under prompt corrective action regulations as of December 31, 2024[419]. - As of December 31, 2024, the Bank's Tier 1 capital to risk-weighted assets ratio was 11.41%, up from 10.54% in 2023[420]. - The Bank's total capital to risk-weighted assets ratio was 12.10% for the Bank and 13.12% for the consolidated entity as of December 31, 2024[420]. Loan Portfolio and Performance - Total loans amounted to $2.425565 billion as of December 31, 2024, with fixed-rate loans constituting $1.003445 billion and floating-rate loans $1.422120 billion[364]. - Non-performing loans totaled $12.8 million, a decrease from $50.8 million in 2023, indicating improved loan quality[378]. - The largest category of the loan portfolio is Commercial Real Estate (CRE), with Non-Owner Occupied CRE accounting for 25.3% of total loans in 2024, up from 21.6% in 2023[359]. - The company conducts regular loan reviews and stress tests to assess risk levels in the loan portfolio, ensuring robust credit policies are in place[363].