First Western Financial's Q4 2024 Earnings: A Tale of Growth and Improvement
Saturday, Jan 25, 2025 3:28 am ET
9min read As we step into 2025, let's take a closer look at First Western Financial, Inc. (MYFW) and its impressive performance in the fourth quarter of 2024. The company reported strong earnings, driven by growth in loan and deposit balances, improved asset quality, and a robust net interest margin. Here's a breakdown of the key takeaways and what they mean for the company's future.
Growth in Loan and Deposit Balances
First Western Financial saw a 2.1% increase in total loans, reaching $2.45 billion in Q4 2024, compared to $2.40 billion in Q3 2024. Additionally, average deposits grew by 4.0% to $2.50 billion in Q4 2024. This growth in both loan and deposit balances is a positive sign, indicating an increase in interest-earning assets and a stable funding base. Scott C. Wylie, CEO of First Western, attributed this growth to well-diversified loan production and strong expense control.
q3 2024 to q4 2024's interest expenses on deposits increase(6524)
Interest Expenses on Deposits interval growth value2024.09.30-2024.12.31  |
|---|
| 3.43B |
| 2.14B |
| 10.88M |
| 10.81M |
| 5.58M |
| 4.68M |
| 1.32M |
| 1.28M |
| 1.23M |
| 962.00K |
Ticker |
|---|
| MFGMizuho Financial Group |
| MUFGMitsubishi Ufj |
| WAFDWaFd |
| AXAxos Financial |
| FNBF.N.B. |
| TFSLTfs Financial |
| ESSAESSA Bancorp |
| NBNNortheast Bank |
| CFFNCapitol Federal Financial |
| RVSBRiverview Bancorp |
View 6524 results
Improved Asset Quality and Provision for Credit Losses
The company reported a release of provision for credit losses of $974,000 in Q4 2024, compared to a provision of $501,000 in Q3 2024. This improvement in provision for credit losses indicates a lower risk profile and contributes to the company's net income. Wylie mentioned that the company saw positive trends in its asset quality, suggesting that this improvement is not a one-time event but a result of overall improvement in the quality of the company's assets.
from q3 2024 to q4 2024's provision for credit losses(6524)
Provision for Credit Losses(USD)2024.09.30  | Provision for Credit Losses(USD)2024.12.31 |
|---|---|
| 2.48B | 2.64B |
| 3.11B | 2.63B |
| 2.68B | 2.59B |
| 553.42M | 1.66B |
| 1.54B | 1.45B |
| 1.47B | 1.20B |
| 1.07B | 1.10B |
| 656.24M | 1.09B |
| 776.47M | 795.61M |
| 761.99M | 738.93M |
Ticker |
|---|
| COFCapital One |
| JPMJpmorgan Chase |
| CCitigroup |
| HDBHDFC Bank |
| BACBank Of America |
| DFSDiscover Financial |
| WFCWells Fargo |
| BMOBank of Montreal |
| TDThe Toronto-Dominion Bank |
| BNSThe Bank of Nova Scotia |
View 6524 results
Net Interest Income and Margin
First Western Financial reported a net interest income of $16.9 million in Q4 2024, up from $15.6 million in Q3 2024. The net interest margin increased by 13 basis points to 2.45% in Q4 2024, driven by an increase in average interest-earning assets and expansion in the net interest margin. This growth in net interest income and margin is a positive trend, indicating improved profitability.
q3 2024 to q4 2024's net interest income(6524)
Net Interest Income(USD)2024.09.30 | Net Interest Income(USD)2024.12.31 |
|---|---|
| 23.41B | 23.35B |
| 13.97B | 14.36B |
| 13.36B | 13.73B |
| 11.69B | 11.84B |
| 8.08B | 8.10B |
| 5.49B | 5.70B |
| 5.31B | 5.50B |
| 3.94B | 4.35B |
| 4.18B | 4.29B |
| 4.14B | 4.15B |
Ticker |
|---|
| JPMJpmorgan Chase |
| BACBank Of America |
| CCitigroup |
| WFCWells Fargo |
| COFCapital One |
| TDThe Toronto-Dominion Bank |
| RYRoyal Bank Of Canada |
| MUFGMitsubishi Ufj |
| HDBHDFC Bank |
| USBU.S. Bancorp |
View 6524 results
Looking Ahead
First Western Financial's strong performance in Q4 2024 sets the stage for an even more promising 2025. The company is well-positioned to deliver improved financial performance, driven by positive trends in loan and deposit growth, net interest margin, non-interest income, and more operating leverage. The company's balance sheet strength, combined with the improvement in asset quality, positions it well to manage risks and generate profitable growth in the future.
In conclusion, First Western Financial's Q4 2024 earnings call was a testament to the company's growth and improvement. With a strong balance sheet, improved asset quality, and a robust net interest margin, the company is well-positioned to continue its positive momentum in 2025. As an investor, keeping an eye on First Western Financial could prove to be a wise decision.
Word count: 598
Wow all thanks to EMILY E. HENRY,
I never knew that she was very good in crypto trading and finance management, I was into stock trading for pass years, I've been losing a lot of money in stocks trading, but when a friend of mine referred me to her financial adviser EMILY E. HENRY on Facebook. I'm life was transformed. Now I've achieved my dreams through my investment journey with Emily E Henry.