First Western's Q4 Earnings: A Closer Look at the Numbers

First Western Financial, Inc. (MYFW) recently reported its fourth-quarter 2024 earnings, providing a glimpse into the company's financial health and strategic focus. The earnings snapshot reveals a mix of positive trends and challenges, offering valuable insights for investors. Let's dive into the key takeaways from the earnings report.



Net Income and Earnings per Share

First Western reported net income available to common shareholders of $2.7 million in Q4 2024, compared to $2.1 million in Q3 2024. Diluted earnings per share (EPS) came in at $0.28 in Q4 2024, up from $0.22 in Q3 2024. This improvement in net income and EPS reflects the company's continued focus on profitability and growth.



Net Interest Income and Margin

Net interest income for Q4 2024 was $16.9 million, up from $15.6 million in Q3 2024. This increase was driven by a combination of factors, including an increase in average interest-earning assets and an expansion in the net interest margin. The net interest margin increased by 13 basis points to 2.45% in Q4 2024, compared to 2.32% in Q3 2024.



Loan and Deposit Growth

First Western's strategic focus on deposit gathering and loan production has paid off, with total loans increasing by 2.1% to $2.45 billion in Q4 2024, and average deposits growing by 4.0% to $2.50 billion. This growth in loans and deposits has allowed the company to maintain a conservative approach to new loan production and fund new client relationships.



Asset Quality and Non-Performing Loans

First Western has maintained strong underwriting criteria and collateral, which has resulted in minimal or no losses on non-performing loans. In Q4 2024, the company established a reserve on individually analyzed loans to reflect the possibility that it may not fully collect on certain receivables and business valuations that were collateral for some of its loans. This proactive approach has helped the company maintain its financial health and position it for future growth.

In conclusion, First Western's Q4 2024 earnings snapshot reveals a mix of positive trends and challenges. The company's focus on deposit gathering and loan production has contributed to its solid revenue and earnings gains, while its disciplined expense control and strong underwriting criteria have helped maintain its financial health. As the company continues to execute on its strategic priorities, investors should monitor its progress and consider the potential impact of external factors on its long-term performance.