Core Insights - First Financial Bancorp reported a net income of $71.9 million for Q3 2025, an increase from $70.0 million in Q2 2025, with diluted earnings per share rising to $0.75 from $0.73 [1][5] - The company achieved record revenue of $234 million in Q3 2025, driven by a robust net interest margin and record noninterest income [4][5] - The company expects to close its acquisition of Westfield Bank on November 1, 2025, and anticipates further efficiencies from pending acquisitions [4][5] Financial Performance - For the nine months ended September 30, 2025, earnings per diluted share increased to $2.02 from $1.72 in the same period of 2024 [1] - Return on average assets for Q3 2025 was 1.54%, while return on average tangible common equity was 19.11% [2][5] - Adjusted net income for Q3 2025 was $72.6 million, with adjusted earnings per share at $0.76, resulting in an adjusted return on assets of 1.55% [4] Revenue and Income - The net interest margin on a fully tax-equivalent basis was 4.02%, with record noninterest income of $73.5 million [5][6] - Noninterest income represented 31% of total net revenue for the quarter, with significant contributions from leasing business income and foreign exchange income [4][6] - Total allowance for credit losses was $179.5 million, with a quarterly provision expense of $9.1 million [4] Asset Quality and Capital - Nonperforming assets remained stable at 0.41% of total assets, with annualized net charge-offs at 0.18%, showing slight improvement from the previous quarter [4][6] - Tangible book value per share increased by 5% from the previous quarter to $16.19, and tangible common equity rose to 8.87% [4][6] - The total capital ratio increased by 34 basis points to 15.32%, with Tier 1 common equity also rising by 34 basis points to 12.91% [6][7] Operational Efficiency - The company successfully reduced its full-time equivalents by approximately 200, or 9%, over the past two years as part of workforce efficiency efforts [4] - Noninterest expenses were well-managed, remaining flat compared to the second quarter, despite incentives tied to strong performance [4][6] - Average deposit growth was 4.3% on an annualized basis, with total deposits reaching $14.5 billion [6][7]

Core Insights - First Western Financial, Inc. reported a net income of $3.2 million for Q3 2025, an increase from $2.5 million in Q2 2025 and $2.1 million in Q3 2024, reflecting improved profitability [3][7]. - The company experienced significant growth in total deposits, which rose by $320 million, or 12.6%, from $2.53 billion in Q2 2025 to $2.85 billion in Q3 2025 [7][22]. - Net interest income increased by $1.6 million, or 8.9%, from $17.9 million in Q2 2025 to $19.5 million in Q3 2025, driven by a rise in average interest-earning assets [7][13]. - Non-interest income also saw a rise of $0.5 million, or 7.9%, from $6.3 million in Q2 2025 to $6.8 million in Q3 2025, primarily due to increases in net gains on mortgage loans and fees [7][14]. - The efficiency ratio improved to 76.4% in Q3 2025 from 78.8% in Q2 2025, indicating better cost management [18]. Financial Performance - Total income before non-interest expense was $24.0 million for Q3 2025, up 7.1% from $22.4 million in Q2 2025, with gross revenue increasing by 8.7% to $26.3 million [9]. - The provision for credit losses was $2.3 million in Q3 2025, compared to $1.8 million in Q2 2025, reflecting a cautious approach to credit risk [29]. - The net interest margin decreased by 13 basis points to 2.54% from 2.67% in Q2 2025, attributed to a shift in the mix of interest-earning assets and an increase in the cost of funds [11][12]. Asset and Liability Management - Total loans held for investment increased by $50 million, or 2.0%, to $2.59 billion as of September 30, 2025, with growth in non-owner occupied commercial real estate and residential portfolios [21]. - Total assets reached $3.24 billion as of September 30, 2025, up from $3.03 billion in Q2 2025, indicating robust growth [42][44]. - The company’s borrowings from the Federal Home Loan Bank and Federal Reserve decreased to $50.9 million, down $112.5 million from $163.4 million in Q2 2025, reflecting strong deposit growth [23]. Credit Quality - Non-performing assets totaled $22.7 million, or 0.70% of total assets, as of September 30, 2025, an increase from $18.8 million, or 0.62%, in Q2 2025 [26]. - Non-performing loans increased to $18.3 million from $14.4 million in Q2 2025, primarily due to the addition of one credit relationship [28]. - The allowance for credit losses as a percentage of total loans increased from 0.75% to 0.81% during the quarter, reflecting a proactive stance on credit quality [29]. Capital Position - As of September 30, 2025, the company maintained a strong capital position, with Tier 1 capital to risk-weighted assets at 9.80% and total capital at 12.50% [30]. - Book value per common share increased by 1.1% from $26.64 in Q2 2025 to $26.92, and tangible book value per common share rose by 1.2% from $23.39 to $23.68 [30][31].

Financial Performance - Net income available to common shareholders for Q2 2025 was $2.5 million, or $0.26 per diluted share, a decrease from $4.2 million, or $0.43 per diluted share in Q1 2025, but an increase from $1.1 million, or $0.11 per diluted share in Q2 2024 [2][6]. - Total income before non-interest expense was $22.4 million for Q2 2025, a decrease of 9.3% from $24.7 million in Q1 2025, but an increase of 9.8% from $20.4 million in Q2 2024 [8]. - Net interest income increased to $17.9 million in Q2 2025, up 2.3% from $17.5 million in Q1 2025 and up 13.3% from $15.8 million in Q2 2024 [12][6]. Loan and Deposit Growth - Total loans increased by $115 million, or 4.7%, from $2.43 billion in Q1 2025 to $2.54 billion in Q2 2025 [6][20]. - Total deposits were $2.53 billion as of June 30, 2025, an increase of 0.4% from $2.52 billion in Q1 2025 and an increase from $2.41 billion in Q2 2024 [21]. Net Interest Margin and Efficiency - Net interest margin increased by 6 basis points to 2.67% in Q2 2025 from 2.61% in Q1 2025, and increased by 32 basis points from 2.35% in Q2 2024 [10][11]. - The efficiency ratio improved to 78.83% in Q2 2025 from 79.16% in Q1 2025 and 82.25% in Q2 2024 [17]. Credit Quality - Non-performing assets totaled $18.8 million, or 0.62% of total assets, as of June 30, 2025, compared to $17.1 million, or 0.59% of total assets in Q1 2025, and a decrease from $49.3 million, or 1.68% of total assets in Q2 2024 [26]. - Non-performing loans increased to $14.4 million as of June 30, 2025, from $12.8 million in Q1 2025, but decreased from $37.9 million in Q2 2024 [27]. Capital Position - As of June 30, 2025, the Company exceeded minimum capital levels required by regulators, with a Tier 1 capital to risk-weighted assets ratio of 9.96% [29]. - Book value per common share increased by 0.8% from $26.44 in Q1 2025 to $26.64 in Q2 2025, and increased by 4.3% from $25.55 in Q2 2024 [30].

Company Overview - First Western Financial, Inc. is a financial services holding company headquartered in Denver, Colorado, with operations in Colorado, Arizona, Wyoming, California, and Montana [5] - The company 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 [5] - First Western's common stock is traded on the NASDAQ Global Select Market under the symbol "MYFW" [5] Upcoming Financial Results - First Western will release its financial results for the second quarter ended June 30, 2025, after the markets close on Thursday, July 24, 2025 [1] - A conference call will be held on Friday, July 25, 2025, at 10:00 a.m. Mountain Time/12:00 p.m. Eastern Time to discuss the financial results [2] - The conference call will be webcast live on the News & Events page of First Western's investor relations website, with an archived version available shortly after the live call [4]