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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
$186.81M
Dividend YieldN/A
Average Volume (3M)16.20K
Price to Earnings (P/E)22.6
Beta (1Y)1.56
Revenue Growth6.95%
EPS Growth-3.82%
CountryUS
Employees310
SectorFinancial
Sector Strength83
IndustryBanking
Share Statistics
EPS (TTM)0.87
Shares Outstanding9,704,421
10 Day Avg. Volume18,496
30 Day Avg. Volume16,199
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.12
Price to Cash Flow (P/CF)-10.80
P/FCF Ratio4.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$23.25Price Target Upside18.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
First Western Financial Business Overview & Revenue Model
Company DescriptionFirst Western Financial, Inc. (MYFW) is a financial holding company headquartered in Denver, Colorado. It operates primarily through its subsidiary, First Western Trust Bank, providing a comprehensive suite of wealth management services, including private banking, personal trust, investment management, and mortgage lending. The company caters to high-net-worth individuals, families, and businesses, focusing on personalized financial solutions that integrate banking and investment expertise.
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 shows strong revenue growth and effective cost management. The balance sheet highlights a solid equity position with no debt, offering financial stability, though the low equity ratio suggests high reliance on liabilities. The cash flow statement indicates potential liquidity issues, with negative operating and free cash flows needing improvement.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.75
Positive
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
Positive
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.50
Neutral
| 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
Negative
19.64
Price Trends
19.67
Negative
20.05
Negative
19.17
Positive
Market Momentum
-0.25
Positive
44.52
Neutral
30.91
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 19.64 is above the 20-day moving average (MA) of 19.57, below the 50-day MA of 19.67, and above the 200-day MA of 19.17, indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 44.52 is Neutral, neither overbought nor oversold. The STOCH value of 30.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $303.24M | 9.72 | 8.10% | 3.32% | 11.16% | -26.17% | |
70 Neutral | $704.78M | 11.54 | 10.33% | 4.02% | 14.18% | 22.19% | |
65 Neutral | $666.42M | 10.93 | 10.55% | 2.78% | 8.68% | -6.27% | |
64 Neutral | $5.09B | 22.81 | 14.39% | 2.02% | 18.54% | 12.22% | |
64 Neutral | $14.22B | 10.62 | 8.28% | 4.24% | 17.19% | -10.03% | |
63 Neutral | $186.81M | 22.62 | 3.42% | ― | 6.95% | -3.82% | |
55 Neutral | $2.36B | 27.11 | 3.68% | 2.85% | 345.02% | ― |
* Financial Sector Average
Performance Comparison
MYFW
First Western Financial
19.38
4.25
28.09%
CAC
Camden National
41.44
10.12
32.31%
CIVB
Civista Bancshares
19.64
4.77
32.08%
FFIN
First Financial Bankshares
35.65
4.87
15.82%
BANC
Banc of California
14.09
-0.44
-3.03%
GSBC
Great Southern Bancorp
57.14
5.46
10.57%
First Western Financial Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: 8.33% | Next Earnings Date: Apr 17, 2025
Earnings Call Sentiment Positive
The earnings call highlighted positive trends in profitability, loan production, and net interest margin expansion, reflecting strong financial performance. However, challenges such as a decrease in assets under management, a decline in noninterest income, and an OREO write-down were also noted. The overall sentiment is cautiously optimistic, with expectations for continued improvement in 2025.Highlights
Increased Profitability in Q4 2024
Generated net income of $2.7 million or $0.28 per diluted share, an increase from the prior quarter. Tangible book value per share increased by 1.6%.
Record Loan Production
Achieved the highest level of loan production in any quarter of 2024, with new loan production at $94 million, up from $83 million in Q3.
Net Interest Margin Expansion
Net interest income increased by 8.3% from the prior quarter, with net interest margin increasing by 13 basis points to 2.45%.
Decrease in Nonperforming Assets
Positive trends in asset quality led to a decline in nonperforming assets to total assets and another quarter of immaterial charge-offs.
Strong Performance in Risk Management and Insurance Fees
Achieved a record quarter in risk management and insurance fees, totaling $1.1 million, double the level from the same quarter in the prior year.
Lowlights
Decrease in Assets Under Management
Assets under management decreased by $145 million in Q4 due to net withdrawals and lower market values.
Noninterest Income Decline
Noninterest income decreased by approximately $500,000 from the prior quarter due to a decline in gain on sale of mortgage loans.
OREO Write-Down
There was a $1.1 million write-down in OREO from new appraisals, negatively impacting EPS by $0.08 in the fourth quarter.
Company Guidance
During First Western Financial's Q4 2024 earnings call, the management team provided guidance for 2025, emphasizing expected improvements in financial performance. CEO Scott Wylie highlighted a strategic focus on maintaining a loan-to-deposit ratio in the mid-90% range and reducing deposit costs, which contributed to a net interest margin expansion to 2.45%, up 13 basis points from the previous quarter. The company achieved a net income of $2.7 million, or $0.28 per diluted share, despite a $1.1 million write-down in OREO. Loan production reached $94 million, with an increase in commercial loans and residential mortgages. The tangible book value per share grew by 1.6%, and deposit gathering efforts led to an $11 million increase in total deposits. For 2025, First Western anticipates continued loan growth, further expansion of the net interest margin, and enhanced fee income, particularly from risk management and insurance fees. The company also aims to maintain disciplined expense control, projecting quarterly noninterest expenses around $20 million. Overall, management expressed optimism about capitalizing on market opportunities and enhancing shareholder value in the coming year.First Western Financial Corporate Events
Financial Disclosures
First Western Financial Reports Strong Q4 2024 Performance
Positive
Jan 23, 2025
First Western Financial reported a significant improvement in its financial performance for the fourth quarter of 2024, with net income rising to $2.7 million from $2.1 million in the previous quarter. The company experienced growth in net interest income, loans, and deposits, along with an increase in net interest margin to 2.45%. Additionally, the company saw the highest level of insurance fees recorded in a quarter and maintained strong expense control. With plans to redeploy cash from selling OREO properties into interest-earning assets, First Western Financial is well-positioned for continued profitable growth and value creation for shareholders in 2025 and beyond.
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.