0001628280-26-012825
SEC filingFirst Western Financial, Inc. reported net income of $13.2 million for fiscal year 2025, with earnings per share of $1.00 (basic and diluted). The company generated total interest and dividend income of $159.8 million and total non-interest income of $26.6 million, resulting in total income before non-interest expense of $96.9 million. Net interest income was $75.4 million, with a provision for credit losses of $5.0 million reducing net interest income after provision to $70.3 million. Total non-interest expense was $79.8 million, with salaries and employee benefits being the largest component at $46.1 million. The company ended the year with total assets of $3.15 billion, total liabilities of $2.89 billion, and shareholders' equity of $265.6 million. Cash flow from operations was negative $1.8 million, while financing activities provided $228.6 million in cash, primarily from net deposit growth of $232.4 million.
First Western Financial, Inc. reported fiscal year 2025 results with net income of $13.2 million, translating to earnings per share of $1.00 for both basic and diluted calculations. The company generated total interest and dividend income of $159.8 million, primarily from loans including fees ($145.4 million) and interest-bearing deposits in other financial institutions ($9.0 million). Interest expense totaled $84.4 million, resulting in net interest income of $75.4 million. After a $5.0 million provision for credit losses, net interest income after provision was $70.3 million. Non-interest income contributed $26.6 million, led by trust and investment management fees ($18.5 million) and net gain on mortgage loans ($4.4 million). Total non-interest expense was $79.8 million, with salaries and employee benefits ($46.1 million) representing the largest component. Income before taxes was $17.1 million, with income tax expense of $3.9 million.
The company's revenue streams are divided between interest income and non-interest income. Interest income of $159.8 million was driven primarily by loans including fees ($145.4 million), investment securities ($4.5 million), and interest-bearing deposits in other financial institutions ($9.0 million). Non-interest income of $26.6 million was diversified across multiple sources, with trust and investment management fees ($18.5 million) being the largest contributor, followed by net gain on mortgage loans ($4.4 million), bank fees ($1.3 million), and various other smaller sources. The company's revenue mix shows a strong reliance on traditional banking activities with growing contributions from fee-based services.
The company's net interest margin can be inferred from the relationship between net interest income ($75.4 million) and interest-earning assets, though specific margin percentages are not provided in the data. Operating margin, calculated as income before income taxes ($17.1 million) divided by total income before non-interest expense ($96.9 million), was approximately 17.6%. The cost structure shows that salaries and employee benefits ($46.1 million) represented 57.8% of total non-interest expense ($79.8 million), indicating a people-intensive business model. Other significant expense categories included occupancy and equipment ($8.2 million), professional services ($7.7 million), and technology and information systems ($4.3 million).
The company reported negative operating cash flow of $1.8 million for the year, despite net income of $13.2 million, due to significant adjustments including mortgage loan origination activities. Investing activities used $264.4 million in cash, primarily for loan and note receivable originations ($218.0 million) and purchases of debt securities. Financing activities provided $228.6 million in cash, driven by net deposit growth of $232.4 million. The balance sheet shows total assets of $3.15 billion, with loans net of allowance ($2.63 billion) representing 83.5% of assets. Total liabilities were $2.89 billion, with deposits ($2.75 billion) comprising 95.2% of liabilities. Shareholders' equity was $265.6 million, resulting in an equity-to-assets ratio of 8.4%.
The filing includes forward-looking statements cautioning that assumptions, expectations, projections, intentions or beliefs about future events may vary from actual results. The company discusses cybersecurity risk management as part of its governance structure, with the information security officer reporting to the Executive Director Risk, Human Capital, and Operations. The Board of Directors considers cybersecurity risk as part of its risk management oversight function, with the Audit Committee receiving updates on cybersecurity matters at least annually. Material cybersecurity incidents are escalated to senior management and, if necessary, the Audit Committee. No specific financial guidance or strategic priorities for future periods are provided in the available document content.