First Western(US:MYFW)2025-10-23 20:15Financial Performance - Net income available to common shareholders was $3.2 million, or $0.32 per diluted share, for Q3 2025, compared to $2.5 million, or $0.26 per diluted share, in Q2 2025[3] - Non-interest income for Q3 2025 was $6.8 million, an increase of 7.9% from $6.3 million in Q2 2025[12] - Net income available to common shareholders for Q3 2025 was $3,186,000, a 27.3% increase compared to $2,503,000 in Q2 2025[32] - Basic earnings per common share for Q3 2025 was $0.33, compared to $0.26 in Q2 2025[32] - Return on tangible common equity (annualized) improved to 5.54%, compared to 4.40% in the previous quarter, showing an increase of 25.8%[42] Deposits and Loans - Total deposits increased by $320 million, or 12.6%, from $2.53 billion in Q2 2025 to $2.85 billion in Q3 2025[6] - Total loans held for investment were $2.59 billion as of September 30, 2025, an increase of $50 million, or 2.0%, compared to June 30, 2025[16] - Total deposits reached $2,848,911 thousand, a significant increase from $2,529,129 thousand in the previous quarter, reflecting a growth of 12.7%[38] - Total loans held for investment increased to $2,593,564 thousand, up from $2,543,194 thousand in the previous quarter, representing a growth of 1.97%[36] Income and Expenses - Net interest income rose by $1.6 million, or 8.9%, from $17.9 million in Q2 2025 to $19.5 million in Q3 2025[6] - Non-interest expense increased by 5.2% from $19.1 million in Q2 2025 to $20.1 million in Q3 2025[14] - Total interest and dividend income for Q3 2025 was $42,774,000, an increase of 14.4% from $37,500,000 in Q2 2025[32] - Net interest income after provision for credit losses was $17,197,000, up 6.7% from $16,111,000 in Q2 2025[32] Asset Management - Assets Under Management (AUM) decreased by $64 million, or 0.9%, from $7.50 billion as of June 30, 2025, to $7.43 billion as of September 30, 2025[20] - Assets under management stood at $7,433,029 thousand, slightly down from $7,497,361 thousand in the previous quarter, a decrease of 0.86%[40] Credit Quality - Non-performing assets totaled $22.7 million, or 0.70% of total assets, as of September 30, 2025, compared to $18.8 million, or 0.62% of total assets, as of June 30, 2025[21] - Non-performing loans rose to $18,293 thousand, compared to $14,394 thousand in the prior quarter, indicating an increase of 26.3%[40] - The allowance for credit losses was $20,967,000, compared to $18,994,000 in Q2 2025[34] - The allowance for credit losses to total loans ratio improved to 0.81%, compared to 0.75% in the previous quarter, indicating a strengthening of credit quality[40] Efficiency and Capital - The efficiency ratio improved to 76.4% in Q3 2025, compared to 78.8% in Q2 2025[15] - The efficiency ratio improved to 76.38%, down from 78.83% in the previous quarter, indicating better operational efficiency[42] - The Tier 1 capital to risk-weighted assets ratio was 9.80%, down from 9.96% in the previous quarter, indicating a slight decrease in capital adequacy[40] Shareholder Equity - Total shareholders' equity as of September 30, 2025, was $261,495,000, slightly up from $258,847,000 in Q2 2025[34] - Book value per common share increased by 1.1% from $26.64 as of June 30, 2025, to $26.92 as of September 30, 2025[24] - Book value per share increased to $26.92, up from $26.64 in the previous quarter, reflecting a growth of 1.05%[40] Future Outlook - The company anticipates continued growth in its wealth management services and plans to expand its market presence in Colorado, Arizona, Wyoming, California, and Montana[29]