Group 1 - First Western (MYFW) reported quarterly earnings of $0.26 per share, missing the Zacks Consensus Estimate of $0.39 per share, compared to earnings of $0.11 per share a year ago, representing an earnings surprise of -33.33% [1] - The company posted revenues of $24.19 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 3.63%, and this is an increase from year-ago revenues of $22.75 million [2] - Over the last four quarters, First Western has surpassed consensus EPS estimates just once, indicating a mixed performance in earnings expectations [2][6] Group 2 - First Western shares have increased approximately 26.7% since the beginning of the year, outperforming the S&P 500's gain of 8.1% [3] - The current consensus EPS estimate for the coming quarter is $0.45 on revenues of $26.5 million, and for the current fiscal year, it is $1.82 on revenues of $104.3 million [7] - The Zacks Industry Rank for Banks - Midwest is currently in the top 29% of over 250 Zacks industries, suggesting a favorable outlook for the industry [8]

Core Viewpoint - Enterprise Financial Services (EFSC) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for EFSC indicates expected earnings of $4.98 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 2.1% [9]. - Over the past three months, analysts have raised their earnings estimates for EFSC by 9.6%, showcasing a positive trend in earnings outlook [9]. Zacks Rating System - The Zacks rating system is based solely on changes in a company's earnings picture, with a strong correlation between earnings estimate revisions and stock price movements [2][5]. - The Zacks Rank system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - EFSC's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11].

Financial Data and Key Metrics Changes - The company reported earnings of $1.28 per diluted share for Q4 2024, compared to $1.32 in the previous quarter and $1.16 in Q4 2023 [4] - Adjusted return on assets was 1.31% and pre-provision return on assets was 1.80% [4] - Net interest income expanded while net interest margin remained flat above 4% [5][6] - The tangible common equity to tangible assets ratio was 9.05% at quarter-end, with an adjusted return on tangible common equity of 14.05% for Q4 [11][12] Business Line Data and Key Metrics Changes - Overall loan growth was around 3% for the year, with Q4 growth of $140 million or 5% annualized [18] - Life insurance premium finance grew by $158 million or 16.5% for the year, showing consistent growth [19] - The SBA segment posted a strong quarter with a growth of $25 million or 7.9% annualized [20] - The agricultural portfolio declined by $27 million as it continues to wind down [8] Market Data and Key Metrics Changes - Client deposits increased by $677 million in Q4, marking the fifth quarter of growth in six [9] - The cost of deposits declined to 2%, with DDA to total deposits increasing to over 34% [10] - The Midwest region saw modest growth, while the Southwestern markets experienced strong growth of $104 million in Q4 [21][22] Company Strategy and Development Direction - The company focuses on diversification, aiming for revenue growth from various markets and business lines [6] - The strategy emphasizes a client-centric approach, providing holistic solutions to clients [7] - The company plans to continue leveraging market disruptions and talent acquisitions to enhance growth and profitability [15][17] Management's Comments on Operating Environment and Future Outlook - Management noted a shift in client sentiment post-presidential election, with expectations for slight increases in loan demand [7][16] - The company anticipates sound growth in C and I sectors in 2025, supported by client investments in infrastructure and reshoring [16] - Management expressed confidence in maintaining a mid to high single-digit growth rate for the balance sheet in 2025 [10][18] Other Important Information - The company increased its dividend by $0.01 per share for Q1 2025 to $0.29 per share [12] - The allowance for credit losses was 1.34% of unguaranteed total loans, reflecting strong credit quality [12][40] - Non-performing assets increased slightly but remained at modest levels [12][39] Q&A Session Summary Question: Margin outlook and impact of rate cuts - Management indicated that the margin could hold above 4% even with potential rate cuts, depending on the shape of the yield curve and deposit cost management [49][52] Question: Non-interest bearing deposits sustainability - Management noted that the increase in non-interest bearing deposits is typically seasonal but expressed confidence in maintaining a strong deposit mix [57] Question: Credit quality concerns - Management reassured that credit quality remains strong, with net charge-offs at 16 basis points and non-performing assets at 30 basis points [58][59] Question: Loan growth outlook - Management believes mid-single-digit loan growth is achievable, supported by ongoing market opportunities and a selective approach to lending [64] Question: Capital management and M&A interest - Management confirmed a focus on organic growth rather than M&A, while remaining open to opportunities that align with strategic goals [76]