First Western Financial (MYFW) AI Stock Analysis

• Market Cap: $238.32M
• Dividend Yield: N/A
• Average Volume (3M): 27.30K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.95
• Revenue Growth: 1.53%
• EPS Growth: 109.74%
• Country: US
• Employees: 321
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.34
• Shares Outstanding: 9,735,091
• 10 Day Avg. Volume: 27,560
• 30 Day Avg. Volume: 27,305
• PEG Ratio: 0.36
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 1.39
• P/FCF Ratio: -44.87
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 1.80
• Enterprise Value/Gross Profit: 3.43
• Enterprise Value/Ebitda: 16.75
• 1Y Price Target: $26.50
• Price Target Upside: 8.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.08
• Revenue Forecast (FY): $115.50M

• Rating: 53 Neutral
• Price Target: $26.00 ▲(6.21% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by mixed financial performance—improving earnings and better leverage are outweighed by weak cash-flow consistency and still-modest returns. Technical indicators are mildly bearish/neutral, while valuation appears reasonable but not compelling. The latest earnings call adds support via upbeat guidance on NIM expansion and growth, partially offset by noted fee/AUM softness and one-time items.

Positive Factors

Balance Sheet Strength

Leverage has improved materially with equity growth, giving the bank a stronger capital buffer to absorb shocks and support lending. Lower debt-to-equity increases resilience, enables disciplined organic growth and potential opportunistic M&A without immediate need for dilutive capital.

NIM and Net Interest Income Expansion

Sustained NIM expansion and large year-over-year NII gains reflect effective repricing and deposit-cost management. Management’s long-run NIM target and active balance-sheet optimization suggest NII growth can remain a durable revenue driver as loans reprice and deposit beta moderates.

Scale in Wealth & Mortgage Franchise

A sizeable AUM base and rising tangible book value indicate a scalable wealth/trust platform that can produce recurring fees and operating leverage. Insider ownership aligns management/shareholders, while mortgage and wealth hiring (e.g., new MLOs) supports sustainable fee diversification over time.

Negative Factors

Weak Cash Flow Conversion

Back-to-back negative operating and free cash flow reverses prior strong cash generation, raising durable concerns about earnings quality and conversion. Weaker cash flow can constrain reinvestment, limit buffers for credit stress, and increase reliance on deposits or wholesale funding.

Modest Returns

Profitability and returns remain well below prior-cycle peaks, limiting internal capital generation and shareholder return potential. Sustained low ROE and compressed margins reduce flexibility to fund growth initiatives and make performance sensitive to higher funding costs or margin pressures.

Wealth Fee Headwinds

Quarterly AUM outflows and a drop in noninterest income weaken recurring fee revenue and operating leverage in the wealth business. If withdrawals persist, wealth fees and margin expansion targets will be harder to achieve, making diversification benefits less durable.

First Western Financial Business Overview & Revenue Model

Company Description

First Western Financial, Inc., a financial holding company, provides wealth management, private banking, personal trust, investment management, mortgage lending, and institutional asset management services. The company operates through two segments: Wealth Management and Mortgage. The Wealth Management segment provides deposit, loan, insurance, and trust and investment management advisory products and services. The Mortgage segment engages in soliciting, originating, and selling mortgage loans into the secondary market. It serves entrepreneurs, professionals, high-net worth individuals or families, and philanthropic and business organizations. The company operates 18 profit centers, including 14 boutique private trust bank offices with 2 locations in Arizona, 9 locations in Colorado, and 3 location in Wyoming; 2 loan production offices with 1 location in Ft. Collins, Colorado, and 1 location in Greenwood Village, Colorado; and 2 trust offices with 1 location in Laramie, Wyoming, and 1 location in Century City, California. First Western Financial, Inc. was incorporated in 2002 and is headquartered in Denver, Colorado.

How the Company Makes Money

First Western Financial generates revenue through multiple key streams. Primarily, the company earns interest income from its loan portfolio, which includes commercial real estate loans, construction loans, and personal loans. Additionally, it collects fees from various banking services, such as account maintenance and transaction services. The wealth management division contributes significantly to the company's earnings through management fees charged on investment accounts and advisory services. The firm may also derive income from trust and estate planning services, which include fees for managing trusts and estates. Significant partnerships with investment firms and other financial institutions enhance its product offerings and client acquisition, further supporting its revenue growth.

First Western Financial Financial Statement Overview

Summary

Mixed fundamentals: revenue growth and improving earnings since 2023 plus a healthier leverage profile (debt-to-equity down to ~0.41x) support the score, but back-to-back negative operating/free cash flow in 2024–2025 and still-muted profitability (net margin ~7.1%, ROE ~5% in 2025) are material offsets.

Income Statement

Revenue has generally grown over the period, accelerating in 2022–2023 and still up in 2025 (annual revenue rose from $177.8M in 2024 to $186.3M in 2025). Profitability, however, has been volatile: net margin peaked above 20% in 2020–2021, fell sharply in 2022–2023, and partially recovered to ~7.1% in 2025. The positive sign is improving earnings momentum since 2023 (net income up from $5.2M in 2023 to $13.2M in 2025), but current margins remain well below earlier-cycle levels.

Balance Sheet

Leverage appears moderate and improving: debt-to-equity moved down meaningfully from elevated levels in 2020–2022 (above 0.8x and as high as ~1.12x in 2020) to ~0.41x in 2025. Equity has also grown steadily (from ~$155.0M in 2020 to ~$265.6M in 2025), supporting balance-sheet resilience. The main weakness is that returns on equity are currently modest (~5.0% in 2025), well below the stronger 2020–2021 levels, suggesting profitability is not yet fully normalized despite better leverage.

Cash Flow

Cash flow quality has deteriorated recently: operating cash flow and free cash flow turned negative in 2024 and remained negative in 2025 (operating cash flow of -$0.5M in 2024 and -$1.8M in 2025). This is a notable reversal from strong positive cash generation in 2021–2023 (including ~$162.5M operating cash flow in 2021 and ~$21.9M in 2023). While banking cash flows can swing meaningfully year to year, back-to-back negative periods raise questions around consistency and the durability of earnings conversion into cash.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	186.35M	177.77M	165.38M	127.51M	101.04M
Gross Profit	97.83M	87.51M	80.57M	106.56M	94.39M
EBITDA	20.05M	14.14M	9.44M	30.84M	28.54M
Net Income	13.19M	8.47M	5.22M	21.70M	20.61M
Balance Sheet
Total Assets	3.15B	2.92B	2.98B	2.87B	2.53B
Cash, Cash Equivalents and Short-Term Investments	55.36M	236.04M	254.44M	196.51M	441.70M
Total Debt	107.61M	109.60M	178.05M	199.02M	77.66M
Total Liabilities	2.89B	2.67B	2.73B	2.63B	2.31B
Stockholders Equity	265.56M	252.32M	242.74M	240.86M	219.04M
Cash Flow
Free Cash Flow	-5.77M	-1.76M	19.53M	45.31M	160.41M
Operating Cash Flow	-1.80M	-544.00K	21.88M	48.28M	162.51M
Investing Cash Flow	-264.44M	66.44M	-66.39M	-558.80M	-43.02M
Financing Cash Flow	228.58M	-84.30M	102.44M	320.05M	111.50M

First Western Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MYFW, the sentiment is Negative. The current price of 24.48 is below the 20-day moving average (MA) of 25.51, below the 50-day MA of 25.84, and above the 200-day MA of 23.59, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 36.44 is Neutral, neither overbought nor oversold. The STOCH value of 44.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MYFW.

First Western Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BPRN	72 Outperform	$229.60M	12.73	6.73%	3.50%	12.92%	56.52%
HWBK	69 Neutral	$226.45M	10.24	14.27%	2.39%	0.16%	258.06%
CFFI	68 Neutral	$237.90M	8.76	10.89%	2.55%	8.53%	42.73%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MYFW	53 Neutral	$238.32M	19.63	4.95%	―	1.53%	109.74%

First Western Financial Corporate Events

First Western Financial Highlights Growth in Updated Investor Presentation

First Western Financial furnished updated investor presentation materials in February 2026 outlining its franchise profile and recent performance, highlighting a balance sheet that as of December 31, 2025 included $3.15 billion in assets, $2.65 billion in loans, $2.75 billion in deposits and $7.28 billion in assets under management. The materials emphasized that tangible book value per share has risen about 176% since 2017, total assets are up 201% since its IPO through a mix of organic growth, acquisitions and market expansion, and that insiders hold roughly 15.5% of shares, positioning the company as a high-performing Western wealth and private trust bank trading at what management characterizes as a discounted valuation relative to its book value.

Management also underscored operational leverage from a scalable platform, minimal credit losses tied to an affluent client base, and a deposit mix in which noninterest-bearing and money market accounts comprised 82% of deposits at year-end 2025, supporting earnings momentum. The presentation framed these trends as evidence of strong execution on growth strategies in attractive markets and sought to reinforce First Western’s standing among top-performing U.S. banks over the past decade, with implications for shareholders who may see continued value creation if the institution maintains its growth, asset quality and return profile.

The most recent analyst rating on (MYFW) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on First Western Financial stock, see the MYFW Stock Forecast page.

First Western Financial Reports Stronger Q4 2025 Earnings

On January 22, 2026, First Western Financial reported improved fourth-quarter 2025 results, with net income available to common shareholders rising to $3.3 million, or $0.34 per diluted share, up from $3.2 million, or $0.32 per diluted share, in the third quarter of 2025 and $2.7 million, or $0.28 per share, a year earlier. The bank’s performance was driven by a 17-basis-point sequential increase in net interest margin to 2.71%, a 5.6% rise in net interest income to $20.6 million, and 2.3% linked-quarter growth in loans held for investment to $2.65 billion, partially offset by lower non-interest income and higher non-interest expenses, including an OREO write-down. Management highlighted healthy economic conditions in its markets, stable asset quality, and stronger loan demand supporting disciplined growth, which contributed to higher book and tangible book value per share and signaled continued balance sheet strength and improving profitability for shareholders going into 2026.

The most recent analyst rating on (MYFW) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on First Western Financial stock, see the MYFW Stock Forecast page.