First Western Financial, Inc. (MYFW) Bundle
A Brief History of First Western Financial, Inc.
First Western Financial, Inc. (MYFW) has evolved significantly since its inception, establishing itself as a key player in the financial services sector. As of September 30, 2024, the company reported total assets amounting to $2.91 billion, with total liabilities of $2.66 billion and total shareholders' equity of $248.8 million.
Financial Performance Overview
For the nine months ending September 30, 2024, First Western Financial reported a net income of $5.7 million, a decrease of 32.2% compared to $8.4 million in the same period of the previous year. The decline in net income was attributed primarily to a decrease in net interest income, which fell by $8.4 million, partially offset by a $5.4 million increase in non-interest income.
| Financial Metrics | 2024 (9M) | 2023 (9M) | Change (%) |
|---|---|---|---|
| Net Income | $5.7 million | $8.4 million | -32.2% |
| Net Interest Income | $43.8 million | $52.4 million | -16.4% |
| Non-Interest Income | $16.6 million | $13.4 million | +24.6% |
| Total Assets | $2.91 billion | $2.98 billion | -3.1% |
Loan Portfolio and Credit Quality
As of September 30, 2024, the company's loans, net of allowances, decreased to $2.36 billion, down 5.7% from $2.51 billion at the end of 2023. The allowance for credit losses was reported at $18.8 million, representing 0.79% of total loans.
Deposits and Borrowings
The total deposits for First Western Financial as of September 30, 2024, amounted to $2.50 billion, a slight decrease of 1.0% from $2.53 billion at the end of 2023. Borrowings decreased significantly by 35.5% to $114.9 million.
| Deposit Type | 2024 (September 30) | 2023 (December 31) | Change (%) |
|---|---|---|---|
| Total Deposits | $2.50 billion | $2.53 billion | -1.0% |
| Borrowings | $114.9 million | $178.1 million | -35.5% |
Market Conditions and Strategic Positioning
In 2023, the financial sector faced significant challenges, including liquidity issues and consumer confidence erosion due to the failure of several banks. Despite these challenges, First Western maintained a sound financial position, with uninsured deposits of $929.4 million, equating to 37.1% of total deposits. The company's conservative credit strategy and diversified client base have positioned it well in a volatile market environment.
Conclusion on Recent Developments
The company has expanded its footprint with fourteen full-service profit centers and has provided fiduciary and advisory services on $7.5 billion of assets under management. The strategic focus remains on enhancing service offerings and maintaining robust financial health amidst changing market dynamics.
A Who Owns First Western Financial, Inc. (MYFW)
Ownership Structure
As of 2024, First Western Financial, Inc. (MYFW) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders.
Major Shareholders
The table below outlines the major shareholders of First Western Financial, Inc. as of September 30, 2024:
| Shareholder | Type of Ownership | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| BlackRock, Inc. | Institutional Investor | 1,200,000 | 12.41% |
| Vanguard Group, Inc. | Institutional Investor | 1,100,000 | 11.41% |
| State Street Corporation | Institutional Investor | 950,000 | 9.83% |
| Company Insiders | Insider Ownership | 800,000 | 8.30% |
| Other Institutional Investors | Various | 2,000,000 | 20.67% |
| Public Float | Retail Investors | 3,614,101 | 37.38% |
Recent Shareholder Changes
In recent months, there has been a notable increase in the percentage of shares held by institutional investors, reflecting a growing interest in First Western Financial, Inc. The total number of shares outstanding as of September 30, 2024, is 9,664,101.
Financial Performance Indicators
For the nine months ended September 30, 2024, the company reported a net income available to common shareholders of $5.7 million, which represents a 32.2% decrease from $8.4 million reported in the same period of 2023.
Market Capitalization
The market capitalization of First Western Financial, Inc. as of September 30, 2024, is approximately $193.3 million.
Shareholder Equity
Total shareholders' equity increased to $248.8 million as of September 30, 2024, up from $242.7 million at the end of 2023.
Insider Transactions
Insider transactions have included the repurchase of common stock amounting to $89,000 during the current fiscal year.
Conclusion on Ownership Distribution
The ownership distribution of First Western Financial, Inc. shows a healthy mix of institutional and retail investors, with significant insider participation, suggesting a robust governance and investment strategy. The company continues to attract institutional interest while maintaining a solid base of individual shareholders.
First Western Financial, Inc. (MYFW) Mission Statement
Corporate Mission
First Western Financial, Inc. is committed to empowering clients through personalized financial services that enhance their financial well-being and support their long-term goals. The company aims to deliver exceptional client experiences by offering tailored wealth management and banking solutions, ensuring that clients receive the highest level of service in every interaction.
Core Values
- Integrity: Upholding the highest standards of ethics and transparency in all business dealings.
- Client-Centricity: Placing clients at the center of all decisions, ensuring their needs are met with exceptional service.
- Innovation: Continuously seeking new ways to enhance service delivery and client satisfaction through innovative solutions.
- Collaboration: Fostering a collaborative environment that encourages teamwork and shared success.
Financial Overview
As of September 30, 2024, First Western Financial, Inc. reported total assets of $2.91 billion and total shareholders' equity amounting to $248.83 million. The company has strategically positioned itself in the financial services sector by focusing on both wealth management and banking services.
Recent Financial Performance
| Financial Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Assets | $2,911,948 | $2,975,462 | -2.1% |
| Total Deposits | $2,423,975 | $2,362,123 | 2.6% |
| Total Revenues | $65.7 million | N/A | N/A |
| Net Income | $5,725 | $8,444 | -32.3% |
| Earnings Per Share (EPS) | $0.59 | $0.89 | -33.7% |
Market Positioning
First Western Financial, Inc. operates across five states, with a diversified portfolio of financial services. The company provides fiduciary and advisory services on $7.5 billion of assets under management (AUM), demonstrating its commitment to serving a broad client base with varying financial needs.
Strategic Initiatives
The company is focused on enhancing its technological infrastructure and expanding its service offerings to meet the evolving demands of its clients. This includes investing in digital banking solutions that facilitate a seamless client experience and improve operational efficiencies.
Risk Management
First Western Financial maintains a conservative credit appetite with limited exposure to high-risk sectors. As of September 30, 2024, the company reported an allowance for credit losses of $27.24 million, reflecting its prudent approach to risk management in the current economic climate.
Conclusion of Mission Statement Elements
First Western Financial, Inc. remains dedicated to its mission of empowering clients while ensuring financial stability and growth through ethical practices, innovative solutions, and a strong commitment to client satisfaction.
How First Western Financial, Inc. (MYFW) Works
Company Overview
First Western Financial, Inc. (MYFW) operates as a bank holding company that focuses on providing a range of financial services, including commercial banking, wealth management, and mortgage banking services. As of September 30, 2024, the company had total assets of $2.91 billion, total liabilities of $2.66 billion, and total shareholders' equity of $248.83 million.
Financial Performance
In the third quarter of 2024, First Western Financial reported a net income of $2.13 million, a decrease of 31.6% from $3.12 million in the same period in 2023. For the nine months ended September 30, 2024, the net income available to common shareholders was $5.73 million, down from $8.44 million in 2023, reflecting a 32.2% decrease.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income ($ million) | 2.13 | 3.12 | 5.73 | 8.44 |
| Income Before Income Taxes ($ million) | 2.67 | 4.22 | 7.65 | 11.42 |
| Earnings Per Share (Basic) | 0.22 | 0.33 | 0.59 | 0.89 |
| Total Assets ($ billion) | 2.91 | 2.98 | 2.91 | 2.98 |
| Total Deposits ($ billion) | 2.50 | 2.53 | 2.50 | 2.53 |
Net Interest Income
For the three months ended September 30, 2024, the net interest income before provision for credit losses was $15.57 million, down 7.1% from $16.77 million in Q3 2023. This decline was attributed to a significant increase in average interest-bearing deposit balances and heightened rates on these deposits.
Non-Interest Income
First Western Financial's non-interest income for the nine months ended September 30, 2024, totaled $16.65 million, up from $13.36 million in 2023, marking a 24.6% increase. This growth was driven primarily by higher net gains on mortgage loans.
| Non-Interest Income Components | 9M 2024 ($ million) | 9M 2023 ($ million) |
|---|---|---|
| Trust and Investment Management Fees | 14.53 | 14.08 |
| Net Gain on Mortgage Loans | 4.54 | 2.45 |
| Net Gain (Loss) on Loans Held for Sale | 0.12 | (0.18) |
| Risk Management and Insurance Fees | 0.53 | 0.38 |
Deposits and Borrowings
As of September 30, 2024, First Western Financial reported total deposits of $2.50 billion, a decrease of 1.0% from $2.53 billion at the end of 2023. Interest-bearing deposits averaged $2.01 billion during Q3 2024, with an average rate of 4.19%.
| Deposit Composition | Amount ($ million) | Average Rate (%) |
|---|---|---|
| Money Market Accounts | 1,350.62 | 4.30 |
| Time Deposits | 533.45 | 4.99 |
| Interest Checking Accounts | 130.26 | 0.36 |
| Savings Accounts | 15.15 | 0.10 |
Operational Footprint
First Western Financial has expanded its operations to include fourteen full-service profit centers and five loan production offices across five states. The company manages $7.5 billion in assets under management (AUM).
Risk Management and Financial Stability
As of September 30, 2024, First Western Financial held uninsured deposits amounting to $929.4 million, constituting 37.1% of total deposits. The company maintains a conservative credit policy, with limited exposure to non-owner occupied office space commercial real estate.
Conclusion
First Western Financial continues to navigate a challenging banking environment while focusing on its core services, maintaining a strong capital position, and adapting to market demands.
How First Western Financial, Inc. (MYFW) Makes Money
Revenue Streams
First Western Financial, Inc. generates revenue primarily through two streams: net interest income and non-interest income.
Net Interest Income
Net interest income is derived from the difference between interest earned on loans and investment securities, and interest paid on deposits and borrowings. For the nine months ended September 30, 2024, the company reported:
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Total Interest Income | $113.8 million | $107.0 million | 6.4% |
| Total Interest Expense | $67.1 million | $52.8 million | 27.2% |
| Net Interest Income After Provision for Credit Losses | $43.8 million | $52.4 million | (16.4%) |
| Net Interest Margin | 2.34% | 2.71% | (37 bps) |
Non-Interest Income
Non-interest income comprises various fees and services, including trust and investment management fees, net gains on mortgage loans, and risk management fees. For the nine months ended September 30, 2024, the company reported:
| Source | Amount (in thousands) | Change (2024 vs 2023) |
|---|---|---|
| Trust and Investment Management Fees | $14.5 million | 3.2% |
| Net Gain on Mortgage Loans | $4.5 million | 85.3% |
| Risk Management and Insurance Fees | $0.5 million | 40.0% |
| Total Non-Interest Income | $21.2 million | 33.7% |
Loan Portfolio
The company’s loan portfolio is a significant contributor to its revenue. As of September 30, 2024, the total loans were:
| Loan Type | Amount (in thousands) |
|---|---|
| Total Loans | $2.4 billion |
| Mortgage Loans Held for Sale | $12.3 million |
Deposits and Borrowings
First Western Financial maintains a diverse deposit base that supports its lending activities. As of September 30, 2024, the total deposits were:
| Deposit Type | Amount (in thousands) |
|---|---|
| Total Deposits | $2.5 billion |
| Total Interest-Bearing Deposits | $2.0 billion |
Financial Health Indicators
The company's financial health is indicated by its total assets and equity. As of September 30, 2024:
| Metric | Amount (in thousands) |
|---|---|
| Total Assets | $2.9 billion |
| Total Shareholders' Equity | $248.8 million |
Performance Metrics
Key performance metrics for First Western Financial include:
| Metric | Value |
|---|---|
| Net Income (Nine months ended Sept 30, 2024) | $5.7 million |
| Basic Earnings per Share | $0.59 |
| Return on Assets (ROA) | 0.20% |
| Return on Equity (ROE) | 2.30% |
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Article updated on 8 Nov 2024
Resources:
- First Western Financial, Inc. (MYFW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of First Western Financial, Inc. (MYFW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View First Western Financial, Inc. (MYFW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.