First Western Financial Inc (MYFW) Reports Q3 2023 Earnings: Net Revenue Increases by 9.6%
Net revenue increased by 9.6% to $22.5 million in Q3 2023, compared to $20.6 million in Q2 2023.
Net income available to common shareholders was $3.1 million in Q3 2023, compared to $1.5 million in Q2 2023.
Diluted EPS of $0.32 in Q3 2023, compared to $0.16 in Q2 2023.
Total deposits increased to $2.42 billion, up 11.7% from $2.17 billion as of Q3 2022.
First Western Financial Inc (NASDAQ:MYFW) released its Q3 2023 earnings report on October 19, 2023. The company reported a net revenue increase of $2.0 million, or 9.6%, to $22.5 million in Q3 2023, compared to $20.6 million in Q2 2023. Net income available to common shareholders was $3.1 million in Q3 2023, compared to $1.5 million in Q2 2023 and $6.2 million in Q3 2022.
Financial Performance
First Western Financial Inc (NASDAQ:MYFW) reported diluted EPS of $0.32 in Q3 2023, compared to $0.16 in Q2 2023 and $0.64 in Q3 2022. The book value per common share increased to $25.76, or 1.5%, from $25.38 as of Q2 2023, and was up 4.1% from $24.74 as of Q3 2022. Total deposits increased to $2.42 billion, or 1.9%, from $2.38 billion as of Q2 2023, and were up 11.7% from $2.17 billion as of Q3 2022.
CEO Commentary
Scott C. Wylie, CEO of First Western, commented on the company's performance,
We delivered another quarter of strong financial performance and generated $4.6 million in pre-tax, pre-provision income, an increase of 17% from the prior quarter, while continuing to operate with a conservative approach, prioritizing prudent risk management, and maintaining high levels of liquidity, capital and reserves."
Financial Summary
Net interest income for Q3 2023 was $16.8 million, a decrease of 9.1% from $18.4 million in Q2 2023. Non-interest income for Q3 2023 was $6.1 million, an increase of 53.9%, from $4.0 million in Q2 2023. Non-interest expense for Q3 2023 decreased 1.1% to $18.3 million, from $18.5 million in Q2 2023.
Loan and Deposit Growth
Total loans held for investment were $2.54 billion as of September 30, 2023, an increase of 1.4% from $2.50 billion as of June 30, 2023. Total deposits were $2.42 billion as of September 30, 2023, an increase of 1.9% from $2.38 billion as of June 30, 2023.
Outlook
First Western Financial Inc (NASDAQ:MYFW) continues to focus on balance sheet management, attracting new clients, providing exceptional service to existing clients, and tightly managing expenses. The company believes it is well positioned to consistently add new clients, realize more operating leverage as it increases its scale, generate profitable growth, and create additional value for shareholders.
This article first appeared on GuruFocus.
