First Western Financial (MYFW) Q1 2026 earnings summary

Executive summary

• Net income available to common shareholders was $6.2 million in Q1 2026, up 85% quarter-over-quarter and 47.6% year-over-year, with diluted EPS rising to $0.63.

• Profitability improved due to higher net interest income, disciplined expense management, and a release of provision for credit losses.

• Book value and tangible book value per share increased during the quarter.

• Positive trends in loan and deposit growth, net interest income, and asset quality contributed to improved profitability.

• Wealth Management and Mortgage segments both reported higher pre-tax income, with Wealth Management contributing the majority.

Financial highlights

• Net interest income was $20.9 million, up 1.5% sequentially and 19.7% year-over-year, with net interest margin expanding to 2.81%.

• Gross revenue increased 3.4% quarter-over-quarter to $27.6 million.

• Non-interest income reached $6.7 million, up 9.8% sequentially but down year-over-year, driven by higher mortgage origination and trust fees.

• Non-interest expense decreased 5.2% sequentially to $20.2 million, with the efficiency ratio improving to 73.1%.

• Book value per share: $28.10, tangible book value per share: $24.87, both up over 3% sequentially.

Outlook and guidance

• Management expects continued strong financial performance, supported by robust loan and deposit pipelines and healthy economic conditions in core markets.

• Guidance for balance sheet growth is high single digits, with potential for double-digit loan growth in 2026.

• Anticipates further, though moderating, NIM expansion and ongoing operating leverage from expense control.

• Capital ratios remain above regulatory well-capitalized thresholds, supporting future growth.

• No signs of asset quality deterioration expected; positive trends projected to continue.