First Western(US:MYFW)2025-10-31 20:16Financial Performance - For the three months ended September 30, 2025, net income available to common shareholders was $3.2 million, a 52.4% increase from $2.1 million for the same period in 2024[208]. - The company reported a $4.2 million, or 73.7% increase in net income available to common shareholders for the nine months ended September 30, 2025, totaling $9.9 million[210]. - For the nine months ended September 30, 2025, net interest income increased by $7.4 million, or 15.6%, to $54.8 million compared to the same period in 2024[215]. - Net interest income for the three months ended September 30, 2025, was $19.5 million, a 25.0% increase compared to the same period in 2024, driven by a $363.5 million increase in average interest-earning assets[211]. Assets and Liabilities - Total assets as of September 30, 2025, were $3.24 billion, with fiduciary and advisory services provided on $7.43 billion of assets under management (AUM)[198]. - Total assets increased by $321.4 million, or 11.0%, to $3.24 billion as of September 30, 2025, compared to $2.92 billion as of December 31, 2024[245]. - Loans, net of allowance increased by $162.6 million, or 6.8%, to $2.57 billion as of September 30, 2025, driven by new loan production[247]. - Total loans held for investment amounted to $2,590.8 million as of September 30, 2025, an increase from $2,425.6 million as of December 31, 2024[266]. Income and Expenses - Non-interest income decreased by $0.7 million for the nine months ended September 30, 2025, primarily due to lower net gains on mortgage loans and trust management fees[210]. - Non-interest income for Q3 2025 decreased by $0.1 million, or 1.9%, to $6.8 million compared to Q3 2024, primarily due to declines in risk management and insurance fees[224]. - Non-interest expense for Q3 2025 increased by $0.7 million, or 3.6%, to $20.1 million, primarily due to higher salaries and employee benefits[231]. - Non-interest expense for the nine months ended September 30, 2025 decreased by $0.5 million, or 0.8%, to $58.5 million compared to the same period in 2024[232]. Credit Quality - The provision for credit losses increased by $1.8 million for the three months ended September 30, 2025, reflecting loan growth and specific reserve provisions[208]. - Non-performing assets decreased to $22.5 million as of September 30, 2025, down from $48.7 million as of December 31, 2024, primarily due to the sale of two OREO properties[276]. - The allowance for credit losses (ACL) on pooled loans was $17.0 million as of September 30, 2025, reflecting a decrease from $18.0 million as of December 31, 2024[278]. - Non-accrual loans increased to $18.1 million as of September 30, 2025, compared to $12.8 million as of December 31, 2024, indicating a rise in credit risk[277]. Deposits and Borrowings - Total deposits increased by $334.7 million, or 13.3%, to $2.85 billion as of September 30, 2025, compared to December 31, 2024[283]. - Average deposits for the three months ended September 30, 2025 were $2.77 billion, an increase of $369.0 million, or 15.4%, compared to $2.40 billion for the same period in 2024[283]. - Borrowings decreased to $95.6 million as of September 30, 2025, from $109.6 million as of December 31, 2024[288]. - Interest-bearing deposits increased to 76.62% of total deposits in Q3 2025, compared to 71.51% in Q3 2024[292]. Market and Investment Performance - Assets Under Management (AUM) decreased by $64.0 million, or 0.9%, during the three months ended September 30, 2025, primarily due to net withdrawals[256]. - AUM increased by $112.0 million, or 1.5%, for the nine months ended September 30, 2025, primarily due to improved market conditions[256]. - The yield on total assets under management was 0.25% as of September 30, 2025, consistent with the previous period[256]. - The company experienced a net market change of $81 million for the nine months ended September 30, 2025, contributing to the increase in AUM[256]. Regulatory Compliance and Capital - The bank's capital ratios exceeded the current well-capitalized regulatory requirements established under Basel III as of September 30, 2025[207]. - The company maintained compliance with all applicable regulatory capital requirements as of September 30, 2025, and was classified as "well capitalized"[294]. - Future contractual obligations total $471.725 million, with $350.086 million due within one year[296]. Interest Rate Management - Average interest-bearing deposit rates decreased to 3.63% for the three months ended September 30, 2025, from 4.19% in the same period of 2024[212]. - A 200 basis point increase in interest rates is projected to increase net interest income by 14.54% as of September 30, 2025[301]. - Interest rate risk exposure is actively monitored and managed, with quarterly reviews by the Board of Directors[300].