First Western Financial (MYFW) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $2.5 million ($0.26 per diluted share), up significantly year-over-year but down from Q1 due to one-time gains and higher provisions.

• Tangible book value per share increased, reaching $23.39, aided by share repurchases and prudent balance sheet management.

• Asset quality remained stable, with a slight increase in non-performing loans due to one credit relationship.

• Total assets reached $3.03 billion, up 3.7% from year-end; AUM grew 4.5% to $7.50 billion, driven by market gains.

• Wealth Management drove most profits, while Mortgage segment saw subdued volumes and income.

Financial highlights

• Net interest income was $17.9 million, up 2.3% sequentially and 13.3% year-over-year; net interest margin rose 6 bps to 2.67%.

• Non-interest income was $6.3 million, down sequentially and year-over-year, mainly due to lower mortgage and trust fees.

• Non-interest expense decreased to $19.1 million, with efficiency ratio improving to 78.8%.

• Provision for credit losses was $1.8 million, up from Q1 but down from Q2 2024.

• Total deposits were $2.53 billion, up 0.6% from year-end; borrowings increased to $208.1 million.

Outlook and guidance

• Management expects continued balance sheet growth, net interest margin expansion, and disciplined expense control in H2 2025.

• NIM projected to remain flat in Q3, expanding in Q4 to low-to-mid 2.70s; long-term target is 3.15–3.20 in a normalized rate environment.

• Non-interest expense guidance remains $19.5–$20 million per quarter for the remainder of the year.

• No material changes to risk factors or forward-looking statements since the last annual report.