The following is a summary of the First Western Financial, Inc. (MYFW) Q1 2024 Earnings Call Transcript:
Financial Performance:
First Western Financial posted Q1 earnings higher than initial projections, with $2.5 million in net income or $0.26 per diluted share.
Decreased interest income was due to a rise in interest expenses from an increased average cost of deposits.
A 3 basis points decrease was observed in the Net Interest Margin to 2.34% due to an increase in interest-bearing deposit costs.
A 1% quarterly increase was noted in the tangible book value per share.
Business Progress:
Positive trends were witnessed in the company's efforts to reduce their loan-to-deposit ratio and increase non-interest income, primarily sourced from the wealth management and mortgage banking businesses.
The asset quality improved with a decline in non-performing loans and zero net charge-offs in Q1.
Assets under management have risen by 12% over the past year, an increase of $750 million.
The company plans to focus on core deposit gathering to improve liquidity levels and manage new loan production conservatively.
The bank is betting on increased profitability from the wealth management and mortgage banking sectors in the upcoming quarters, backed by new additions to the Mortgage Loan Originator team.
First Western anticipates loan growth in the latter half of the year, especially in flourishing markets, supported by their platform and team.
The company is fortifying its teams in Arizona and is optimistic about the region's growth.
The bank has opened de novo branches (Bozeman, Vail) which are expected to make significant contributions in the long term.
The bank plans to resolve their remaining large workout credit this year.
More details: First Western Financial IR
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