Wed, May 7, 8:20 PM (16 days ago)
**First Western Financial, Inc. (MYFW) Q1 2025 Financial Health and Performance:** **Revenue and Profit Margins:** - **Net Income:** $4.2 million (Q1 2025) vs. $2.5 million (Q1 2024), a 68.0% increase. - **Income Before Tax:** $5.4 million (Q1 2025) vs. $3.6 million (Q1 2024), a 50.0% increase. - **Net Interest Income:** $17.5 million (Q1 2025) vs. $16.1 million (Q1 2024), an 8.7% increase. - **Non-Interest Income:** $7.3 million (Q1 2025) vs. $7.3 million (Q1 2024), a 0.9% increase. - **Non-Interest Expense:** $19.4 million (Q1 2025) vs. $19.7 million (Q1 2024), a 1.7% decrease. **Cash Flow:** - **Net Cash Provided by Operating Activities:** $8.0 million (Q1 2025) vs. -$2.3 million (Q1 2024). - **Net Cash Provided by Investing Activities:** $32.6 million (Q1 2025) vs. $59.5 million (Q1 2024). - **Net Cash Used in Financing Activities:** -$5.1 million (Q1 2025) vs. -$53.7 million (Q1 2024). **Earnings Changes:** - **Earnings Per Share (EPS) - Basic:** $0.43 (Q1 2025) vs. $0.26 (Q1 2024). - **Earnings Per Share (EPS) - Diluted:** $0.43 (Q1 2025) vs. $0.26 (Q1 2024). **Quarterly Performance Discussion:** - **Net Interest Income:** Increased due to a 54 basis point decrease in average rates paid on interest-bearing deposits, partially offset by an $82.8 million decrease in average loans outstanding. - **Non-Interest Income:** Increased due to a $0.5 million net gain on other real estate owned and a $0.3 million increase in net gain on loans accounted for under the fair value option, offset by a decrease in trust and investment management fees. - **Non-Interest Expense:** Decreased due to a $0.7 million decrease in professional services and a $0.3 million decrease in other operational costs, partially offset by increases in occupancy and equipment expenses and salaries and employee benefits. **Trends and Uncertainties:** - **Economic and Political Landscape:** The banking sector is poised for a stronger 2025, albeit tempered, with a dynamic regulatory landscape shaped by a new administration and evolving supervisory priorities. - **Credit Risk:** The Company has a conservative credit appetite with limited exposure to non-owner occupied office space commercial real estate, which has been impacted by the shift to hybrid work environments. - **Liquidity and Capital:** The Company maintains strong liquidity and capital positions, with a focus on managing asset and liability levels, asset quality, and potential profit production from assets. **Future Operations Impact:** - **Growth and Expansion:** The Company continues to position itself to capitalize on areas of excellence, with a focus on maintaining strong fundamentals and a conservative credit appetite. - **Regulatory Compliance:** The Company is subject to various regulatory capital adequacy requirements and must meet specific capital guidelines to ensure financial soundness.