First Western Reports Fourth Quarter 2024 Financial Results

Core Viewpoint - First Western Financial, Inc. reported a net income of $2.7 million for Q4 2024, showing a significant improvement compared to previous quarters and the same quarter last year, indicating a positive trend in profitability and operational efficiency [3][7][9]. Financial Performance - Net income available to common shareholders was $2.7 million, or $0.28 per diluted share, for Q4 2024, compared to $2.1 million, or $0.22 per diluted share, for Q3 2024, and a net loss of $3.2 million, or $0.34 per diluted share, for Q4 2023 [3][7]. - Net interest income increased to $16.9 million in Q4 2024, up 8.3% from $15.6 million in Q3 2024, and up 3.7% from $16.3 million in Q4 2023 [11][14]. - The net interest margin rose to 2.45% in Q4 2024, an increase of 13 basis points from 2.32% in Q3 2024 and 8 basis points from 2.37% in Q4 2023 [12][13]. Loan and Deposit Growth - Total loans increased by 2.1% from $2.40 billion in Q3 2024 to $2.45 billion in Q4 2024, while average deposits rose by 4.0% from $2.40 billion to $2.50 billion during the same period [7][22]. - Total loans held for investment were $2.43 billion as of December 31, 2024, reflecting a 1.7% increase from $2.39 billion as of September 30, 2024 [21]. Non-Interest Income and Expenses - Total non-interest income for Q4 2024 was $6.5 million, a decrease of 7.1% from $7.0 million in Q3 2024, primarily due to a decrease in net gain on mortgage loans [14][15]. - Non-interest expense increased to $20.4 million in Q4 2024, up 5.2% from $19.4 million in Q3 2024, driven by a $1.1 million write-down of other real estate owned (OREO) [16][18]. Asset Quality - Non-performing assets totaled $49.0 million, or 1.68% of total assets, as of December 31, 2024, down from $52.1 million, or 1.79% of total assets, as of September 30, 2024 [26][27]. - The company recorded a provision release of $1.0 million in Q4 2024, compared to a provision expense of $0.5 million in Q3 2024 and $8.5 million in Q4 2023 [29]. Capital Position - As of December 31, 2024, the company exceeded the minimum capital levels required by regulators, with a Tier 1 capital ratio of 10.07% and a total capital ratio of 13.12% [30]. - Book value per common share increased by 1.4% from $25.75 as of September 30, 2024, to $26.10 as of December 31, 2024 [30][31].