First Western Financial (MYFW) Q4 2024 earnings summary

Executive summary

• Net income available to common shareholders rose to $2.7 million ($0.28 per diluted share) in Q4 2024, reflecting improved profitability compared to the prior quarter and a net loss in Q4 2023.

• Profitability was driven by growth in loans and deposits, disciplined expense control, and improved asset quality.

• Strategic focus included prudent risk management and investments for future growth.

Financial highlights

• Loans held for investment rose by $42 million from the prior quarter; new loan production was $94 million, up from $83 million in Q3.

• Total deposits increased by $11 million; average deposits were 4% higher quarter-over-quarter, reaching $2.50 billion.

• Gross revenue grew 4.8% from the prior quarter, with net interest income up 8.3%.

• Net interest margin (NIM) expanded by 13 basis points to 2.45%.

• Non-interest income fell by $500,000 due to lower mortgage gain-on-sale, offset by record risk management and insurance fees of $1.1 million.

Outlook and guidance

• Management expects continued improvement in financial performance in 2025, with higher loan growth, NIM expansion, and redeployment of OREO sale proceeds.

• Targeting quarterly operating expenses around $20 million in 2025.

• NIM expected to reach 2.73% by year-end 2025, aided by redeployment of non-earning assets.

• Deposit gathering and NIM expansion remain top priorities.