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First Western Financial Inc (MYFW)
NASDAQ:MYFW
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First Western Financial
(NASDAQ:MYFW)
63Neutral
First Western Financial (MYFW) vs. S&P 500 (SPY)
Market Cap
$210.26M
Dividend YieldN/A
Average Volume (3M)37.73K
Price to Earnings (P/E)20.9
Beta (1Y)1.26
Revenue Growth3.14%
EPS Growth35.67%
CountryUS
Employees321
SectorFinancial
Sector Strength85
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.43
Shares Outstanding9,667,142
10 Day Avg. Volume59,030
30 Day Avg. Volume37,725
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.30
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.79
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$24.25Price Target Upside11.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
First Western Financial Business Overview & Revenue Model
Company DescriptionFirst 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 MoneyFirst Western Financial generates revenue primarily through interest income from its lending activities and non-interest income from wealth management services. The company's key revenue streams include interest earned on loans and securities, fees from trust and investment management services, and mortgage banking income. Additionally, its private banking services provide revenue through service fees and transaction charges. Strategic partnerships and a strong focus on client relationships enhance its ability to attract and retain high-net-worth clients, further contributing to its earnings.
First Western Financial Financial Statement Overview
Summary
First Western Financial exhibits strong revenue growth and effective cost management, with substantial improvements in EBIT margin. However, low net profit margin and negative cash flows indicate challenges in profitability and liquidity.Income Statement
The income statement shows a significant increase in total revenue from $82.7M in 2023 to $152.7M in 2024, indicating a strong revenue growth rate of 84.6%. Gross profit margin is robust at 100% due to the nature of banking. However, the net profit margin is relatively low at 5.55%, suggesting limited profitability. EBIT margin improved substantially to 99.2% in 2024, reflecting effective cost management.―
Balance Sheet
The balance sheet is characterized by a strong equity base with stockholders' equity at $252.3M. The debt-to-equity ratio is 0, indicating no debt leverage, which is positive for financial stability. However, the equity ratio is relatively low at 8.64%, implying that the company relies heavily on liabilities to finance its assets. Return on equity is modest at 3.36%, reflecting moderate efficiency in generating profit from shareholders' funds.65
Cash Flow
The cash flow statement reveals challenges in cash management, with negative operating cash flow of -$0.54M in 2024. There is a negative free cash flow growth rate due to significant negative free cash flow, indicating potential liquidity issues. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting net income into cash. The free cash flow to net income ratio is also negative, underscoring cash flow constraints.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 152.65M | 82.70M | 1.45M | 96.66M | 97.28M | Gross Profit |
| 152.65M | 82.70M | 1.45M | 96.66M | 97.28M | EBIT |
| 151.44M | 7.06M | 47.80M | 27.28M | 33.06M | EBITDA |
| 0.00 | 0.00 | 30.84M | 28.54M | 34.18M | Net Income Common Stockholders |
| 8.47M | 5.22M | 21.70M | 20.61M | 24.53M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 9.77M | 254.44M | 196.51M | 441.70M | 192.66M | Total Assets |
| 2.92B | 2.98B | 2.87B | 2.53B | 1.97B | Total Debt |
| 109.60M | 178.05M | 199.02M | 77.66M | 173.85M | Net Debt |
| -9.77M | -76.39M | 2.51M | -307.83M | 17.86M | Total Liabilities |
| 2.67B | 2.73B | 2.63B | 2.31B | 1.82B | Stockholders Equity |
| 252.32M | 242.74M | 240.86M | 219.04M | 154.96M |
| Cash Flow | Free Cash Flow | |||
| -544.00K | 19.53M | 45.31M | 163.74M | -94.54M | Operating Cash Flow |
| -544.00K | 21.88M | 48.28M | 165.85M | -93.33M | Investing Cash Flow |
| 66.44M | -66.39M | -558.80M | -46.36M | -456.02M | Financing Cash Flow |
| -84.30M | 102.44M | 320.05M | 111.50M | 626.70M |
First Western Financial Technical Analysis
Positive
21.69
Price Trends
19.29
Positive
19.61
Positive
19.49
Positive
Market Momentum
0.63
Negative
67.52
Neutral
89.92
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MYFW, the sentiment is Positive. The current price of 21.69 is above the 20-day moving average (MA) of 19.21, above the 50-day MA of 19.29, and above the 200-day MA of 19.49, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 67.52 is Neutral, neither overbought nor oversold. The STOCH value of 89.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MYFW.
First Western Financial Risk Analysis
First Western Financial disclosed 62 risk factors in its most recent earnings report. First Western Financial reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
First Western Financial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $215.56M | 9.96 | 9.67% | 2.67% | 10.36% | 10.16% | |
68 Neutral | $192.63M | 12.24 | 6.43% | 3.16% | 5.57% | -16.40% | |
67 Neutral | $164.48M | 14.72 | 4.10% | 3.99% | -2.87% | -21.25% | |
64 Neutral | $12.61B | 9.79 | 7.95% | 16985.69% | 12.77% | -3.98% | |
63 Neutral | $210.26M | 20.87 | 4.04% | ― | 3.14% | 35.67% | |
62 Neutral | $198.54M | 8.80 | 12.99% | 2.80% | 13.41% | 62.51% | |
62 Neutral | $187.67M | 15.15 | 7.23% | ― | 10.74% | -26.67% |
* Financial Sector Average
Performance Comparison
MYFW
First Western Financial
21.69
4.17
23.80%
CFFI
C&F Financial
66.20
25.49
62.61%
ESSA
Essa Bancorp
18.95
2.63
16.12%
FUNC
First United
30.87
8.99
41.09%
EFSI
Eagle Financial Services
29.73
1.88
6.75%
FINW
FinWise
14.02
3.24
30.06%
First Western Financial Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 15.07%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call reflected a predominantly positive outlook, with significant improvements in profitability, net interest margin, and asset quality. Despite some challenges such as flat loan production and a decrease in assets under management, the company remains optimistic about continued growth and profitability through strategic initiatives and market expansion.Q1-2025 Updates
Positive Updates
Increased Profitability and Net Income
First Western Financial generated net income of $4.2 million or $0.43 per diluted share, with substantial increases from the prior quarter, continuing a recent positive trend.
Improvement in Net Interest Margin
Expansion in the net interest margin, which increased 16 basis points from the prior quarter to 2.61%, due to a reduction in deposit costs and an increase in average yield on interest-earning assets.
Successful Deposit Gathering
There was an increase in non-interest-bearing deposits, supported by adding new clients and inflows from existing clients, contributing to an improvement in deposit mix.
Asset Quality Improvement
The company saw generally positive trends in asset quality, with a decline in non-performing assets to total assets and successful resolution of two large OREO properties sold for a net gain.
Expansion in Trust Investment Management
Efforts to grow the trust investment management business are underway, with strategic hires from Goldman Sachs and other financial institutions to drive future growth.
Negative Updates
Flat Loan Production
The loan portfolio remained essentially unchanged due to $71 million in new loan production being offset by $72 million in loan payoffs.
Decrease in Assets Under Management
A $144 million decrease in assets under management was reported, driven by net withdrawals primarily in fixed fee accounts.
Potential Economic Uncertainty Impact
There is concern about the impact of economic uncertainty and tariffs on loan demand, which could affect loan growth for the year.
Company Guidance
During the First Western Financial's first quarter 2025 earnings call, the management team highlighted several key metrics showcasing the company's improved financial performance. Net income for the quarter was $4.2 million, or $0.43 per diluted share, reflecting a significant increase from the previous quarter. The company's net interest margin expanded by 16 basis points to 2.61%, driven by lower deposit costs and a higher average yield on interest-earning assets. New loan production reached $71 million, although it was slightly offset by $72 million in loan payoffs. Non-interest income increased by approximately $900,000, supported by gains on the sale of mortgage loans and OREO properties. Despite a decrease of $144 million in assets under management due to net withdrawals, tangible book value per share rose by 1.6%. These positive trends in profitability, asset quality, and expense management are expected to continue, with a focus on driving further growth and shareholder value.First Western Financial Corporate Events
Executive/Board Changes
First Western Financial Appoints New Accounting Officer
Neutral
Apr 28, 2025
On April 23, 2025, First Western Financial, Inc. appointed David R. Weber as the Principal Accounting Officer, effective immediately. Mr. Weber, who has been with the company since 2018 and has held various finance roles, will take over from Jesica J. Montgomery as she moves to other functions within the company.
Spark’s Take on MYFW Stock
According to Spark, TipRanks’ AI Analyst, MYFW is a Neutral.
First Western Financial shows strong potential due to significant revenue growth and effective cost management. However, liquidity issues and a mixed technical outlook present challenges. The company’s valuation appears fair, but the absence of a dividend yield and bearish technical signals are notable concerns. Optimism from the earnings call about profitability and strategic initiatives supports the overall score.
To see Spark’s full report on MYFW stock, click here.
Business Operations and StrategyFinancial Disclosures
First Western Financial Reports Q1 2025 Profit Surge
Positive
Apr 24, 2025
First Western Financial reported a significant improvement in profitability for the first quarter of 2025, with net income rising to $4.2 million from $2.7 million in the previous quarter. The company saw positive trends in net interest margin, non-interest income, and deposit growth, alongside a reduction in nonperforming assets due to the sale of two major properties. This performance reflects a strategic focus on enhancing financial stability and shareholder value, with expectations of continued positive trends throughout the year.
Spark’s Take on MYFW Stock
According to Spark, TipRanks’ AI Analyst, MYFW is a Neutral.
First Western Financial exhibits strong revenue growth and effective cost management, bolstering its financial performance score. Technical indicators suggest potential undervaluation, but bearish momentum remains a concern. The valuation score reflects a moderately priced stock with a P/E ratio in line with industry standards, though the absence of dividend yield is a drawback. The earnings call provides an optimistic outlook, emphasizing improvements in net interest margin and loan production, though challenges remain with asset management and noninterest income. Overall, the company has significant growth potential but must navigate liquidity issues and market conditions carefully.
To see Spark’s full report on MYFW stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.