First Western Financial (MYFW, Financial) has released its first-quarter financial results, showcasing significant advancements in several key areas. The tangible book value per share stands at $23.18, alongside a Common Equity Tier 1 (CET1) capital ratio of 10.35%, reflecting the company's solid capital position.
The financial institution has experienced a notable enhancement in its profitability during the first quarter. A considerable improvement was seen in the net interest margin, complemented by an increase in non-interest income and deposits, particularly those that are noninterest-bearing. Additionally, First Western reported robust loan production, efficient cost management, and an overall stability in asset quality.
A significant achievement for the quarter was the reduction of nonperforming assets, primarily due to the successful resolution and sale of the company's two largest Other Real Estate Owned (OREO) properties, resulting in a net gain. These developments signal a strong and stable financial footing for First Western, with promising growth prospects ahead.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for First Western Financial Inc (MYFW, Financial) is $22.83 with a high estimate of $24.00 and a low estimate of $21.50. The average target implies an upside of 21.13% from the current price of $18.85. More detailed estimate data can be found on the First Western Financial Inc (MYFW) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, First Western Financial Inc's (MYFW, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for First Western Financial Inc (MYFW, Financial) in one year is $22.43, suggesting a upside of 18.99% from the current price of $18.85. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the First Western Financial Inc (MYFW) Summary page.
MYFW Key Business Developments
Release Date: January 24, 2025
- Net Income: $2.7 million or $0.28 per diluted share in Q4 2024.
- Loan Production: $94 million in Q4, up from $83 million in Q3.
- Average Rate on New Loan Production: 7.44% in Q4.
- Total Deposits: Increased by $11 million from the prior quarter.
- Gross Revenue: Increased 4.8% from the prior quarter.
- Net Interest Income: Increased 8.3% from the prior quarter.
- Net Interest Margin (NIM): Increased 13 basis points to 2.45%.
- Noninterest Income: Decreased by approximately $500,000 from the prior quarter.
- Noninterest Expense: Increased by $1 million due to a $1.1 million write-down of OREO.
- Assets Under Management: Decreased by $145 million in Q4.
- Tangible Book Value Per Share: Increased by 1.6% in the quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- First Western Financial Inc (MYFW, Financial) achieved its highest level of loan production in any quarter of 2024, driven by additions to its banking team.
- The company successfully lowered deposit costs, contributing to an expansion in net interest margin.
- There was a decline in non-performing assets, with immaterial charge-offs reported for the quarter.
- The tangible book value per share increased by 1.6% during the quarter.
- Net interest income increased by 8.3% from the prior quarter, contributing to a 4.8% rise in gross revenue.
Negative Points
- A $1.1 million write-down in OREO negatively impacted earnings per share by $0.08 in the fourth quarter.
- Non-interest income decreased by approximately $500,000 due to a decline in gain on sale of mortgage loans.
- Assets under management decreased by $145 million in the fourth quarter, primarily due to net withdrawals and lower market values.
- Non-interest expenses increased by $1 million from the prior quarter, attributed to the OREO write-down.
- The trust and investment management fees only increased by 2.2% year over year, indicating slower growth in this segment.
