Company Performance - First Western (MYFW) reported quarterly earnings of $0.22 per share, missing the Zacks Consensus Estimate of $0.30 per share, and down from $0.32 per share a year ago, representing an earnings surprise of -26.67% [1] - The company posted revenues of $22.54 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 6.47%, compared to $22.87 million in the same quarter last year [1] - Over the last four quarters, First Western has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [1] Stock Performance - First Western shares have increased by approximately 6.1% since the beginning of the year, while the S&P 500 has gained 21.5% [2] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.33 on revenues of $24.9 million, and for the current fiscal year, it is $1 on revenues of $95.6 million [4] - 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 [4] Industry Context - The Banks - Midwest industry, to which First Western belongs, is currently in the top 22% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [5] - Empirical research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [5]

Third Quarter 2024 Summary Net income available to common shareholders of $2.1 million in Q3 2024, compared to $1.1 million in Q2 2024Diluted earnings per share of $0.22 in Q3 2024, compared to $0.11 in Q2 2024Total deposits increased 3.7% from $2.41 billion in Q2 2024 to $2.50 billion in Q3 2024. Noninterest-bearing deposits increased 19% from $397 million in Q2 2024 to $474 million in Q3 2024Loan-to-Deposit ratio decreased from 101.9% in Q2 2024 to 95.2% in Q3 2024 DENVER, Oct. 24, 2024 (GLOBE NEWSWIRE) - ...

Financial Performance - For the three months ended June 30, 2024, net income available to common shareholders was $1.1 million, a decrease of $0.4 million, or 28.6%, compared to the same period in 2023[158]. - For the six months ended June 30, 2024, net income available to common shareholders was $3.6 million, a decrease of $1.7 million, or 32.6%, compared to the same period in 2023[159]. - Non-interest income increased by $4.5 million for the six months ended June 30, 2024, driven by an increase in net gain on mortgage loans[159]. - Non-interest income increased by $3.0 million, or 76.0%, to $7.0 million for the three months ended June 30, 2024 compared to the same period in 2023, driven by a rise in net gain on mortgage loans[169]. - The Wealth Management segment reported income before income tax of $645,000 for the three months ended June 30, 2024, down from $2,429,000 in the same period of 2023[181]. Interest Income and Expenses - Net interest income for the three months ended June 30, 2024, was $15.8 million, a decrease of $2.7 million, or 14.4%, compared to the same period in 2023[160]. - The Company experienced a $7.0 million decrease in net interest income for the six months ended June 30, 2024, primarily due to higher rates on deposits and borrowings[159]. - For the six months ended June 30, 2024, net interest income was $31.8 million, a decrease of $6.2 million, or 16.2%, compared to the same period in 2023[161]. - Interest expense on deposits increased significantly, with total interest-bearing liabilities averaging $2.14 billion for the six months ended June 30, 2024, resulting in interest paid of $44.60 million[165]. - The average interest rate on money market deposit accounts increased to 4.34% for the three months ended June 30, 2024, compared to 3.81% for the same period in 2023[240]. Asset Management - The Company provided fiduciary and advisory services on $7.0 billion of assets under management (AUM) as of June 30, 2024[149]. - Total Assets Under Management (AUM) decreased by $129 million, or 1.8%, during the three months ended June 30, 2024, primarily due to asset withdrawals in custody accounts[196]. - For the six months ended June 30, 2024, AUM increased by $259 million, or 3.8%, attributed to contributions and improving market conditions[196]. - The ending balance of Total Assets Under Management as of June 30, 2024, was $7,012 million, compared to $6,504 million as of June 30, 2023[196]. Loan Portfolio - The loan portfolio as of June 30, 2024, amounted to $2.46 billion, with 1-4 family residential loans making up 37.4% of the total[207]. - Non-performing loans decreased from $50,816 thousand as of December 31, 2023, to $37,626 thousand as of June 30, 2024, representing a reduction of approximately 26%[216]. - The company reported $3.1 million in outstanding PPP loans as of June 30, 2024, down from $4.2 million at the end of 2023[206]. - The construction and development loans decreased to $307.5 million, accounting for 12.6% of the total loan portfolio as of June 30, 2024[207]. Deposits and Borrowings - Total deposits decreased by $118.1 million, or 4.7%, to $2.41 billion as of June 30, 2024, from December 31, 2023[240]. - Total time deposits as of June 30, 2024 were $519.6 million, an increase of $23.1 million, or 4.7%, from December 31, 2023[243]. - FHLB borrowings increased to $178.7 million as of June 30, 2024, compared to $91.2 million as of December 31, 2023[246]. Credit Losses and Provisions - The allowance for credit losses increased to $24.27 million as of June 30, 2024, compared to $20.08 million in the same period of 2023[165]. - The provision for credit losses for the six months ended June 30, 2024, was $2,680 thousand, compared to $2,209 thousand for the same period in 2023, indicating an increase of about 21.3%[233]. - The allowance for credit losses to non-accrual loans increased to 72.61% as of June 30, 2024, compared to 47.09% as of December 31, 2023[216]. Regulatory Compliance and Capital - The company remains in compliance with all applicable regulatory capital requirements, classified as "well capitalized" as of June 30, 2024[256]. - The Bank's Tier 1 capital to risk-weighted assets ratio improved to 11.22% as of June 30, 2024, up from 10.54% as of December 31, 2023[257]. - Total capital to risk-weighted assets ratio for the consolidated company was 13.44% as of June 30, 2024, compared to 12.59% as of December 31, 2023[257]. Interest Rate Risk Management - The company actively monitors and manages interest rate risk exposure, with reviews conducted at least quarterly by the board of directors[261]. - A 200 basis point increase in interest rates would result in a 7.41% decrease in net interest income and an 11.30% decrease in the fair value of equity[262]. - The balance sheet maintains a relatively consistent interest rate risk profile compared to December 31, 2023, according to model simulations[263].

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks a ...

First Western, which belongs to the Zacks Banks - Midwest industry, posted revenues of $22.75 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 4.01%. This compares to year-ago revenues of $22.4 million. The company has topped consensus revenue estimates just once over the last four quarters. While First Western has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? It will be interesting to see how estimates ...

[Second Quarter 2024 Summary & CEO Commentary](index=1&type=section&id=Second%20Quarter%202024%20Summary) First Western reported mixed Q2 2024 results, with slight increases in book and tangible book value per share, stabilized net interest margin, and decreased net income, while the CEO expects higher H2 profitability [Executive Summary](index=1&type=section&id=2.1%20Executive%20Summary) First Western reported a slight increase in book value and tangible book value per common share in Q2 2024, with net interest margin stabilizing. Net income available to common shareholders and diluted EPS decreased quarter-over-quarter, while the total capital to risk-weighted assets ratio improved Q2 2024 Key Financial Highlights (QoQ) | Metric | Q2 2024 | Q1 2024 | Change (QoQ) | | :-------------------------------- | :------ | :------ | :----------- | | Book value per common share | $25.55 | $25.52 | +0.1% | | Tangible book value per common share | $22.27 | $22.21 | +0.2% | | Net interest margin | 2.35% | 2.34% | +1 bp | | Net income available to common shareholders | $1.1 million | $2.5 million | -56.0% | | Diluted earnings per share | $0.11 | $0.26 | -57.7% | | Total capital to risk-weighted assets ratio | 13.44% | 13.15% | +29 bps | [CEO Commentary](index=1&type=section&id=2.2%20CEO%20Commentary) The CEO emphasized prudent risk management, disciplined expense control, and strong non-interest income contributions, which led to an increase in tangible book value per share. The company observed strengthening performance towards the end of the quarter and anticipates higher profitability in the second half of the year - Prioritized prudent risk management and conservative new loan production, resulting in a relatively flat balance sheet[3](index=3&type=chunk) - Maintained disciplined expense control, added new deposit relationships, and generated strong non-interest income from wealth management and mortgage banking[3](index=3&type=chunk) - Expects to generate a higher level of profitability in the second half of the year, while continuing investments in talent and technology for future profitable growth[6](index=6&type=chunk) [Operating Results Overview](index=2&type=section&id=Operating%20Results%20for%20the%20Second%20Quarter%202024) First Western's Q2 2024 operating results show decreased net interest income and net income, but improved efficiency ratio, driven by higher loan yields and disciplined expense management [Net Interest Income](index=2&type=section&id=Net%20Interest%20Income) Net interest income for Q2 2024 was $15.8 million, decreasing 1.9% QoQ and 14.1% YoY, primarily due to a decline in interest-bearing deposits in other financial institutions and higher deposit costs Net Interest Income Trends | Period | Amount ($ millions) | QoQ Change | YoY Change | | :----- | :------------------ | :--------- | :--------- | | Q2 2024 | 15.8 | -1.9% | -14.1% | | Q1 2024 | 16.1 | | | | Q2 2023 | 18.4 | | | - Decrease QoQ primarily driven by a decline in interest-bearing deposits in other financial institutions[9](index=9&type=chunk) - Decrease YoY due to higher interest expense from increased deposit costs, partially offset by higher interest income[9](index=9&type=chunk) [Net Interest Margin](index=3&type=section&id=Net%20Interest%20Margin) Net interest margin slightly increased by 1 basis point QoQ to 2.35% but decreased significantly YoY from 2.73%, influenced by higher loan yields and continued pricing pressure on interest-bearing deposits Net Interest Margin Trends | Period | NIM | QoQ Change | YoY Change | | :----- | :---- | :--------- | :--------- | | Q2 2024 | 2.35% | +1 bp | -38 bps | | Q1 2024 | 2.34% | | | | Q2 2023 | 2.73% | | | - QoQ increase primarily due to higher loan yields, partially offset by continued pricing pressure on interest-bearing deposits and an unfavorable mix shift in the deposit portfolio[11](index=11&type=chunk) - Yield on interest-earning assets increased **9 basis points to 5.67%** in Q2 2024 from 5.58% in Q1 2024[19](index=19&type=chunk) - Cost of interest-bearing deposits increased **6 basis points to 4.19%** in Q2 2024 from 4.13% in Q1 2024[19](index=19&type=chunk) [Non-interest Income](index=3&type=section&id=Non-interest%20Income) Non-interest income was $7.0 million in Q2 2024, a 4.1% QoQ decrease due to higher loan prepayment penalties in Q1, but a substantial 76.0% YoY increase driven by higher net gain on mortgage loans and reduced losses on fair value option loans Non-interest Income Trends | Period | Amount ($ millions) | QoQ Change | YoY Change | | :----- | :------------------ | :--------- | :--------- | | Q2 2024 | 7.0 | -4.1% | +76.0% | | Q1 2024 | 7.3 | | | | Q2 2023 | 4.0 | | | - QoQ decrease primarily driven by higher loan prepayment penalties impacting Bank fees during Q1 2024, partially offset by higher Net gain on mortgage loans due to increased origination volume[16](index=16&type=chunk) - YoY increase driven primarily by an increase in net gain on mortgage loans, a decrease in net loss on loans accounted for under the fair value option, and a decrease in other non-interest loss which included an asset impairment write-down in Q2 2023[17](index=17&type=chunk) [Non-interest Expense](index=3&type=section&id=Non-interest%20Expense) Non-interest expense decreased QoQ to $19.0 million due to lower legal fees and fraud losses, but increased 2.6% YoY, primarily driven by technology enhancements and higher occupancy costs. The efficiency ratio improved QoQ to 82.1% Non-interest Expense & Efficiency Ratio Trends | Period | Non-interest Expense ($ millions) | Efficiency Ratio | QoQ Change (Expense) | YoY Change (Expense) | | :----- | :-------------------------------- | :--------------- | :------------------- | :------------------- | | Q2 2024 | 19.0 | 82.1% | -3.5% | +2.6% | | Q1 2024 | 19.7 | 83.4% | | | | Q2 2023 | 18.5 | 74.5% | | | - QoQ decrease driven by a decrease in legal fees and fraud losses[21](index=21&type=chunk) - YoY increase driven primarily by technology enhancements and an increase in occupancy costs[21](index=21&type=chunk) [Income Taxes](index=3&type=section&id=Income%20Taxes) Income tax expense for Q2 2024 was $0.3 million, a significant decrease QoQ and YoY, directly attributable to the decrease in income before income taxes Income Tax Expense Trends | Period | Amount ($ millions) | QoQ Change | YoY Change | | :----- | :------------------ | :--------- | :--------- | | Q2 2024 | 0.3 | -72.7% | -33.3% | | Q1 2024 | 1.1 | | | | Q2 2023 | 0.5 | | | - Decrease was attributable to the decrease in Income before income taxes[22](index=22&type=chunk) [Balance Sheet and Asset Quality](index=3&type=section&id=Balance%20Sheet%20and%20Asset%20Quality) First Western's balance sheet in Q2 2024 saw decreases in loans and deposits, an increase in borrowings, and a rise in non-performing assets, while capital ratios remained strong [Loans](index=3&type=section&id=Loans) Total loans held for investment decreased by 0.8% QoQ to $2.46 billion and 1.6% YoY, primarily due to net decreases in construction, cash, securities and other, and commercial and industrial portfolios, partially offset by growth in commercial real estate Total Loans Held for Investment | Period | Amount ($ billions) | QoQ Change | YoY Change | | :----- | :------------------ | :--------- | :--------- | | Q2 2024 | 2.46 | -0.8% | -1.6% | | Q1 2024 | 2.48 | | | | Q2 2023 | 2.50 | | | - Decline was due to a net decrease in the construction, cash, securities and other, and commercial and industrial portfolios, offset partially by net growth in the commercial real estate portfolio[18](index=18&type=chunk) [Deposits](index=4&type=section&id=Deposits) Total deposits decreased by 4.7% QoQ to $2.41 billion, driven by seasonal tax payments and client liquidity usage, but increased 1.3% YoY due to new and expanded interest-bearing deposit relationships Total Deposits Trends | Period | Amount ($ billions) | QoQ Change | YoY Change | | :----- | :------------------ | :--------- | :--------- | | Q2 2024 | 2.41 | -4.7% | +1.3% | | Q1 2024 | 2.53 | | | | Q2 2023 | 2.38 | | | - QoQ decrease driven primarily by seasonal tax payments, operating account fluctuations and clients using liquidity for strategic investments[24](index=24&type=chunk) - YoY increase driven primarily by interest-bearing deposits due to new and expanded deposit relationships[24](index=24&type=chunk) [Assets Under Management](index=4&type=section&id=Assets%20Under%20Management) Assets Under Management (AUM) decreased by 1.8% QoQ to $7.01 billion due to asset withdrawals in custody accounts, but increased by 7.9% YoY, primarily attributable to improving market conditions Assets Under Management Trends | Period | Amount ($ billions) | QoQ Change | YoY Change | | :----- | :------------------ | :--------- | :--------- | | Q2 2024 | 7.01 | -1.8% | +7.9% | | Q1 2024 | 7.14 | | | | Q2 2023 | 6.50 | | | - QoQ decrease driven by asset withdrawals in custody accounts that have minimal impact on Trust and Investment Management fees[25](index=25&type=chunk) - YoY increase primarily attributable to improving market conditions resulting in an increase in the value of AUM[25](index=25&type=chunk) [Credit Quality](index=4&type=section&id=Credit%20Quality) Non-performing assets increased QoQ to $49.3 million (1.68% of total assets) and significantly YoY, mainly due to a foreclosure and the addition of a large loan relationship in 2023. Provision for credit losses also saw a substantial QoQ increase Non-performing Assets Trends | Period | Amount ($ millions) | % of Total Assets | QoQ Change (Amount) | YoY Change (Amount) | | :----- | :------------------ | :---------------- | :------------------ | :------------------ | | Q2 2024 | 49.3 | 1.68% | +7.2% | +378.6% | | Q1 2024 | 46.0 | 1.57% | | | | Q2 2023 | 10.3 | 0.34% | | | - QoQ increase primarily due to the foreclosure on two properties used as collateral for one participated loan balance, which increased OREO by a greater amount than the resulting decrease in non-performing loans[26](index=26&type=chunk) - YoY increase due to the net addition of **$36.9 million** in loans added throughout 2023, due primarily to the addition of one large loan relationship[26](index=26&type=chunk) Provision for Credit Losses Trends | Period | Amount ($ millions) | QoQ Change | YoY Change | | :----- | :------------------ | :--------- | :--------- | | Q2 2024 | 2.3 | +2200% | +27.8% | | Q1 2024 | 0.1 | | | | Q2 2023 | 1.8 | | | [Borrowings](index=4&type=section&id=Borrowings) Federal Home Loan Bank (FHLB) and Federal Reserve borrowings increased significantly by $122.0 million QoQ to $191.5 million to manage deposit runoff, while subordinated notes remained stable at $52.5 million FHLB and Federal Reserve Borrowings Trends | Period | Amount ($ millions) | QoQ Change | YoY Change | | :----- | :------------------ | :--------- | :--------- | | Q2 2024 | 191.5 | +175.5% | -38.7% | | Q1 2024 | 69.5 | | | | Q2 2023 | 312.6 | | | - QoQ change driven by an increase in FHLB borrowing due to the deposit runoff that occurred in the quarter[30](index=30&type=chunk) - YoY change driven by an increase in deposits, decrease in loans, and a decrease in excess liquidity that had been carried on the balance sheet as a result of the banking crisis in early 2023[30](index=30&type=chunk) Subordinated Notes Trends | Period | Amount ($ millions) | QoQ Change | YoY Change | | :----- | :------------------ | :--------- | :--------- | | Q2 2024 | 52.5 | +0.2% | +0.6% | | Q1 2024 | 52.4 | | | | Q2 2023 | 52.2 | | | [Capital](index=5&type=section&id=Capital) First Western and its Trust Bank exceeded minimum regulatory capital levels, with the Bank classified as 'well capitalized'. Consolidated total capital to risk-weighted assets increased to 13.44% in Q2 2024, and both book value and tangible book value per common share saw slight increases Consolidated Capital Ratios (Q2 2024) | Metric | Ratio | | :---------------------------------- | :------ | | Tier 1 capital to risk-weighted assets | 9.92% | | Common Equity Tier 1 (CET1) to risk-weighted assets | 9.92% | | Total capital to risk-weighted assets | 13.44% | | Tier 1 capital to average assets | 7.91% | Bank Capital Ratios (Q2 2024) | Metric | Ratio | | :---------------------------------- | :------ | | Tier 1 capital to risk-weighted assets | 11.22% | | CET1 to risk-weighted assets | 11.22% | | Total capital to risk-weighted assets | 12.35% | | Tier 1 capital to average assets | 8.95% | Book Value per Common Share Trends | Period | Amount | QoQ Change | YoY Change | | :----- | :----- | :--------- | :--------- | | Q2 2024 | $25.55 | +0.1% | +0.7% | | Q1 2024 | $25.52 | | | | Q2 2023 | $25.38 | | | Tangible Book Value per Common Share Trends | Period | Amount | QoQ Change | YoY Change | | :----- | :----- | :--------- | :--------- | | Q2 2024 | $22.27 | +0.2% | +1.1% | | Q1 2024 | $22.21 | | | | Q2 2023 | $22.03 | | | [Company Information](index=5&type=section&id=Company%20Information) First Western provides details on its upcoming Q2 2024 earnings call and an overview of its operations as a Denver-headquartered financial services holding company [Conference Call & Webcast](index=5&type=section&id=Conference%20Call,%20Webcast%20and%20Slide%20Presentation) First Western will host a conference call and webcast on July 24, 2024, to discuss Q2 2024 results, with a slide presentation accessible on the company's investor relations website - Conference call and webcast scheduled for Wednesday, July 24, 2024, at 10:00 a.m. MT / 12:00 p.m. ET[34](index=34&type=chunk) - Telephone access requires registration via provided link; slide presentation and webcast available on the Company's investor relations website (https://myfw.gcs-web.com)[34](index=34&type=chunk)[42](index=42&type=chunk) [About First Western](index=5&type=section&id=About%20First%20Western) First Western is a financial services holding company headquartered in Denver, Colorado, operating across multiple states and providing a fully integrated suite of wealth management services on a private trust bank platform - Headquartered in Denver, Colorado, with operations in Colorado, Arizona, Wyoming, California, and Montana[43](index=43&type=chunk) - Provides a fully integrated suite of wealth management services on a private trust bank platform, including deposit, loan, trust, wealth planning, and investment management products and services[43](index=43&type=chunk) - Common stock is traded on the Nasdaq Global Select Market under the symbol 'MYFW'[43](index=43&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) This section explains the use of non-GAAP financial measures, which management believes offer a more comprehensive understanding of the company's financial performance and position [Non-GAAP Measures Explanation](index=6&type=section&id=6.1%20Non-GAAP%20Measures%20Explanation) The report utilizes several non-GAAP financial measures, such as Tangible Common Equity and Efficiency Ratio, which management believes offer a more comprehensive understanding of the company's financial performance and position, despite being supplemental to GAAP measures and potentially not comparable to other companies' metrics - 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"[36](index=36&type=chunk) - These measures provide both management and investors a more complete understanding of the Company's financial position and performance[36](index=36&type=chunk) - Non-GAAP measures are supplemental, not a substitute for GAAP, and may not be comparable to other similarly titled measures presented by other companies. Reconciliations are provided at the end of the press release[36](index=36&type=chunk) [Forward-Looking Statements & Risk Factors](index=7&type=section&id=Forward-Looking%20Statements) This section provides a disclaimer regarding forward-looking statements, highlighting inherent risks and uncertainties that could cause actual results to differ materially from projections [Forward-Looking Statements Disclaimer](index=7&type=section&id=7.1%20Forward-Looking%20Statements%20Disclaimer) This section contains forward-looking statements regarding future financial performance and business trends, which are inherently subject to various risks and uncertainties that could cause actual results to differ materially. Readers are cautioned against undue reliance and are directed to the company's SEC filings for a comprehensive list of risk factors - Statements about future financial performance and condition are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995[52](index=52&type=chunk) - Actual financial results could differ materially due to risks and uncertainties, including those related to the soundness of other financial institutions, integration risks from acquisitions, geographic concentration, real estate values, and changes in interest rates[52](index=52&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements and are urged to review the "Risk Factors" section in the Company's Annual Report on Form 10-K and other SEC filings[52](index=52&type=chunk) [Unaudited Financial Statements](index=8&type=section&id=Unaudited%20Financial%20Statements) This section presents the company's unaudited condensed consolidated financial statements, including statements of income, balance sheets, and a detailed financial summary, offering a comprehensive view of its financial performance and position [Condensed Consolidated Statements of Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(unaudited)) The unaudited condensed consolidated statements of income provide a detailed breakdown of interest income, interest expense, non-interest income, non-interest expense, and net income for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023 Condensed Consolidated Statements of Income (Dollars in thousands, except per share amounts) | Metric | June 30, 2024 | March 31, 2024 | June 30, 2023 | | :-------------------------------------- | :------------ | :------------- | :------------ | | Total interest and dividend income | $38,054 | $38,398 | $36,372 | | Total interest expense | $22,276 | $22,328 | $17,937 | | Net interest income | $15,778 | $16,070 | $18,435 | | Provision for credit losses | $2,334 | $72 | $1,843 | | Net interest income, after provision | $13,444 | $15,998 | $16,592 | | Total non-interest income | $6,972 | $7,277 | $3,962 | | Total non-interest expense | $19,001 | $19,696 | $18,519 | | Income before income taxes | $1,415 | $3,579 | $2,035 | | Income tax expense | $339 | $1,064 | $529 | | Net income available to common shareholders | $1,076 | $2,515 | $1,506 | | Basic earnings per common share | $0.11 | $0.26 | $0.16 | | Diluted earnings per common share | $0.11 | $0.26 | $0.16 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(unaudited)) The unaudited condensed consolidated balance sheets present the company's financial position as of June 30, 2024, March 31, 2024, and June 30, 2023, detailing assets, liabilities, and shareholders' equity Condensed Consolidated Balance Sheets (Dollars in thousands) | Metric | June 30, 2024 | March 31, 2024 | June 30, 2023 | | :-------------------------------------- | :------------ | :------------- | :------------ | | Total cash and cash equivalents | $245,799 | $257,889 | $297,568 | | Loans, net | $2,428,744 | $2,450,894 | $2,473,538 | | Total assets | $2,937,555 | $2,932,217 | $3,005,646 | | Total deposits | $2,410,892 | $2,531,970 | $2,375,394 | | FHLB and Federal Reserve borrowings | $191,505 | $69,484 | $312,600 | | Subordinated notes | $52,451 | $52,397 | $52,223 | | Total liabilities | $2,690,680 | $2,686,689 | $2,763,404 | | Total shareholders' equity | $246,875 | $245,528 | $242,242 | [Consolidated Financial Summary](index=10&type=section&id=Consolidated%20Financial%20Summary%20(unaudited)) This section provides a comprehensive summary of financial data, including detailed loan and deposit portfolios, average balance sheets, yields and costs of funds, asset quality indicators, market data, and capital ratios, offering deeper insights into the company's financial health and performance trends [Loan Portfolio](index=10&type=section&id=Loan%20Portfolio) This subsection details the composition and trends of the company's loan portfolio across various categories for the reported periods Loan Portfolio (Dollars in thousands) | Loan Type | June 30, 2024 | March 31, 2024 | June 30, 2023 | | :-------------------------- | :------------ | :------------- | :------------ | | Cash, Securities, and Other | $143,720 | $151,178 | $150,679 | | Consumer and Other | $15,645 | $18,556 | $21,866 | | Construction and Development | $309,146 | $333,284 | $313,227 | | 1-4 Family Residential | $904,569 | $910,129 | $878,670 | | Non-Owner Occupied CRE | $609,790 | $562,862 | $561,880 | | Owner Occupied CRE | $189,353 | $194,338 | $218,651 | | Commercial and Industrial | $277,973 | $297,573 | $338,679 | | Total loans held for investment | $2,460,690 | $2,480,196 | $2,501,926 | [Deposit Portfolio](index=10&type=section&id=Deposit%20Portfolio) This subsection outlines the composition and trends of the company's deposit portfolio, categorized by interest-bearing and noninterest-bearing accounts Deposit Portfolio (Dollars in thousands) | Deposit Type | June 30, 2024 | March 31, 2024 | June 30, 2023 | | :------------------------------ | :------------ | :------------- | :------------ | | Money market deposit accounts | $1,342,753 | $1,503,598 | $1,297,732 | | Time deposits | $519,597 | $442,834 | $376,147 | | Negotiable order of withdrawal accounts | $135,759 | $132,415 | $168,537 | | Savings accounts | $16,081 | $18,887 | $18,737 | | Total interest-bearing deposits | $2,014,190 | $2,097,734 | $1,861,153 | | Noninterest-bearing accounts | $396,702 | $434,236 | $514,241 | | Total deposits | $2,410,892 | $2,531,970 | $2,375,394 | [Average Balance Sheets & Yields/Cost of Funds](index=11&type=section&id=Average%20Balance%20Sheets) This subsection presents the average balance sheets and key metrics related to yields on interest-earning assets and costs of funds for the specified periods Average Balance Sheets & Yields/Cost of Funds (Dollars in thousands, annualized yields/costs) | Metric | June 30, 2024 | March 31, 2024 | June 30, 2023 | | :-------------------------------------- | :------------ | :------------- | :------------ | | **Average Balances:** | | | | | Total interest-earning assets | $2,697,367 | $2,766,826 | $2,712,135 | | Total interest-bearing liabilities | $2,121,301 | $2,152,801 | $2,023,552 | | Total assets | $2,816,614 | $2,866,996 | $2,816,619 | | Total liabilities and shareholders' equity | $2,816,614 | $2,866,996 | $2,816,619 | | **Yields/Cost of funds:** | | | | | Total interest-earning assets yield | 5.67% | 5.58% | 5.38% | | Interest-bearing deposits cost | 4.19% | 4.13% | 3.44% | | Total deposits cost | 3.47% | 3.38% | 2.68% | | Total interest-bearing liabilities cost | 4.22% | 4.17% | 3.56% | | Net interest margin | 2.35% | 2.34% | 2.73% | | Net interest rate spread | 1.45% | 1.41% | 1.82% | [Asset Quality & Market Data](index=12&type=section&id=Asset%20Quality) This subsection provides key indicators of asset quality, including non-performing loans and assets, alongside market data such as assets under management and book values per share Asset Quality & Market Data (Dollars in thousands, except per share amounts) | Metric | June 30, 2024 | March 31, 2024 | June 30, 2023 | | :-------------------------------------- | :------------ | :------------- | :------------ | | Non-performing loans | $37,909 | $46,044 | $10,273 | | Non-performing assets | $49,330 | $46,044 | $10,273 | | Net (recoveries) charge-offs | $(9) | — | $8 | | Non-performing loans to total loans | 1.54% | 1.86% | 0.41% | | Non-performing assets to total assets | 1.68% | 1.57% | 0.34% | | Allowance for credit losses to non-performing loans | 72.06% | 53.49% | 214.58% | | Allowance for credit losses to total loans | 1.11% | 1.00% | 0.89% | | Assets Under Management | $7,011,796 | $7,141,453 | $6,503,964 | | Book value per share at period end | $25.55 | $25.52 | $25.38 | | Tangible book value per common share | $22.27 | $22.21 | $22.03 | | Weighted average outstanding shares, diluted | 9,750,667 | 9,710,764 | 9,686,401 | [Capital Ratios](index=12&type=section&id=Consolidated%20Capital) This subsection details the consolidated and bank-level capital ratios, providing insight into the company's regulatory capital adequacy and financial strength Consolidated Capital Ratios | Metric | June 30, 2024 | March 31, 2024 | June 30, 2023 | | :---------------------------------- | :------------ | :------------- | :------------ | | Tier 1 capital to risk-weighted assets | 9.92% | 9.77% | 9.26% | | CET1 to risk-weighted assets | 9.92% | 9.77% | 9.26% | | Total capital to risk-weighted assets | 13.44% | 13.15% | 12.41% | | Tier 1 capital to average assets | 7.91% | 7.73% | 7.80% | Bank Capital Ratios | Metric | June 30, 2024 | March 31, 2024 | June 30, 2023 | | :---------------------------------- | :------------ | :------------- | :------------ | | Tier 1 capital to risk-weighted assets | 11.22% | 11.00% | 10.34% | | CET1 to risk-weighted assets | 11.22% | 11.00% | 10.34% | | Total capital to risk-weighted assets | 12.35% | 12.02% | 11.23% | | Tier 1 capital to average assets | 8.95% | 8.70% | 8.70% | [Non-GAAP Reconciliations](index=13&type=section&id=Tangible%20Common) This subsection provides reconciliations of non-GAAP financial measures, including tangible common equity, efficiency ratio, and allowance for credit losses to adjusted loans, to their most directly comparable GAAP measures Tangible Common Equity (Dollars in thousands, except per share amounts) | Metric | June 30, 2024 | March 31, 2024 | June 30, 2023 | | :-------------------------------------- | :------------ | :------------- | :------------ | | Total shareholders' equity | $246,875 | $245,528 | $242,242 | | Less: goodwill and other intangibles, net | $31,741 | $31,797 | $31,977 | | Tangible common equity | $215,134 | $213,731 | $210,265 | | Tangible common book value per share | $22.27 | $22.21 | $22.03 | | Return on tangible common equity (annualized) | 2.00% | 4.71% | 2.86% | Efficiency Ratio (Dollars in thousands) | Metric | June 30, 2024 | March 31, 2024 | June 30, 2023 | | :-------------------------------------- | :------------ | :------------- | :------------ | | Non-interest expense | $19,001 | $19,696 | $18,519 | | Adjusted non-interest expense | $18,945 | $19,639 | $18,457 | | Gross revenue | $23,067 | $23,538 | $24,781 | | Efficiency ratio | 82.13% | 83.44% | 74.48% | Allowance for Credit Loss to Adjusted Loans (Dollars in thousands) | Metric | June 30, 2024 | March 31, 2024 | June 30, 2023 | | :-------------------------------------- | :------------ | :------------- | :------------ | | Total loans held for investment | $2,460,690 | $2,480,196 | $2,501,926 | | Less: PPP loans | $3,129 | $3,779 | $5,558 | | Less: loans accounted for under fair value | $10,494 | $12,276 | $18,274 | | Adjusted loans | $2,447,067 | $2,464,141 | $2,478,094 | | Allowance for credit losses | $27,319 | $24,630 | $22,044 | | Allowance for credit losses to adjusted loans | 1.12% | 1.00% | 0.89% |

Book value per common share increased 0.1% from $25.52 in Q1 2024 to $25.55 in Q2 2024. Tangible book value per common share(1) increased 0.2% from $22.21 in Q1 2024 to $22.27 in Q2 2024 Net interest margin stabilized during the quarter, with a slight increase of 1 basis point from 2.34% in Q1 2024 to 2.35% in Q2 2024 Net income available to common shareholders of $1.1 million in Q2 2024, compared to $2.5 million in Q1 2024 Diluted earnings per share of $0.11 in Q2 2024, compared to $0.26 in Q1 2024 Total c ...

Wall Street expects a year-over-year increase in earnings on higher revenues when First Western (MYFW) reports results for the quarter ended June 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 23. On ...

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. For First Western, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year. Current-Year Estimate Revisions Bottom Line First Western (MYFW) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lat ...

Under the plan, First Western Financial is authorized to repurchase up to 2 million shares, representing almost 2% of its outstanding shares. The program will be in effect for one year. First Western Financial doesn't pay dividends. Over the years, First Western Financial has expanded organically and through strategic acquisitions. In 2021, the company acquired Teton Financial Services, Inc. The transaction expanded the company's presence in Wyoming. First Western Financial has a solid balance sheet positio ...