First Western Financial (MYFW) Q4 2025 earnings summary

Executive summary

• Net income available to common shareholders was $3.3 million, or $0.34 per diluted share, up 6% sequentially and 21% year-over-year, with tangible book value per share increasing 1.6% to $24.07.

• Achieved strong fourth quarter results with growth in loans, deposits, and net interest margin, leading to higher profitability compared to the prior quarter.

• Strategic focus on prudent risk management, disciplined expense control, and solid loan growth supported by new banking talent.

• Benefited from market disruption, enabling talent acquisition and new client growth, especially in Colorado and new Arizona markets.

Financial highlights

• Net interest income increased 5.6% quarter-over-quarter to $20.6 million and 21.9% year-over-year; net interest margin improved to 2.71%.

• Gross revenue rose 1.5% to $26.7 million from the prior quarter and 12.2% year-over-year.

• Non-interest income declined by $800,000 due to lower mortgage gain-on-sale and insurance fees.

• Non-interest expense rose to $21.3 million, driven by a $1.4 million OREO write-down; excluding this, expenses decreased.

• Efficiency ratio improved to 74.9% from 76.4% in Q3 2025 and 80.7% in Q4 2024.

Outlook and guidance

• Management expects continued solid loan and deposit growth in 2026, supported by a strong loan pipeline and healthy economic conditions in core markets.

• Anticipates ongoing improvement in net interest margin, business development in wealth management, and higher mortgage production.

• No meaningful asset quality deterioration expected based on current trends.

• Targeting a 1% ROA, with a clear path to achieve and potentially exceed this level.

• Effective tax rate expected in the 23%-24% range.