This article first appeared on GuruFocus .
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Net Income:$6.7 million or $0.57 per diluted share, 129% and 119% higher respectively than the year-ago period.
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Tangible Book Value Per Share:Increased by 2.6% to $25.53.
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Loan Production:$115 million in the second quarter, with an average rate of 6.37%.
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Total Loans:Increased 7% year-over-year.
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Total Deposits:Increased 12.6% year-over-year.
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Non-Interest-Bearing Deposits:Increased $18 million or 5.1% in the quarter.
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Assets Under Management:Increased by $41 million in the second quarter.
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Gross Revenue:Increased 1.8% from the prior quarter and 16% from the second quarter of 2025.
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Net Interest Income:Increased 4.3% from the prior quarter.
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Net Interest Margin:Increased 9 basis points from the prior quarter to 2.9%.
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Non-Interest Income:Decreased by $0.3 million from the prior quarter.
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Non-Interest Expense:Increased by $1 million from the prior quarter.
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Efficiency Ratio:74.03% compared to 73.11% last quarter and 78.83% in the second quarter of 2025.
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Allowance Coverage:75 basis points of total loans.
Release Date: July 24, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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First Western Financial Inc ( NASDAQ:MYFW ) reported a significant increase in net income, reaching $6.7 million or $0.57 per diluted share, which is 129% higher than the previous year.
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The company achieved a 2.6% increase in tangible book value per share, reaching $25.53.
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Loan production remained strong with $115 million in new loans, diversified across various markets and loan types.
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Total deposits increased by 12.6% year-over-year, with a notable rise in non-interest-bearing deposits by 5.1% in the quarter.
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The company maintained stable asset quality with no loan charge-offs for the second consecutive quarter and a release of provision of $0.5 million.
Negative Points
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Non-interest income decreased by $0.3 million from the prior quarter, primarily due to lower origination volume in mortgage loans and decreased risk management and insurance fees.
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Non-interest expense increased by $1 million from the prior quarter, partly due to a $400,000 non-recurring charge related to technology assets.
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The efficiency ratio increased to 74.03% from 73.11% in the previous quarter, indicating higher operational costs.
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The company faces strong price competition on loans, impacting its ability to grow loan volumes without compromising on pricing discipline.
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Deposit acquisition costs have increased due to market disruptions, making it challenging to reduce overall deposit costs.
Q & A Highlights
Q: Can you provide more details on the loan and deposit growth for the second half of the year? A: Scott Wylie, CEO, explained that the company has seen balanced loan production and is benefiting from market disruptions. They are maintaining discipline in pricing and terms, which has led to a net interest margin (NIM) improvement. The company is considering a trade-off between NIM improvement and asset growth, aiming for better growth in the second half of the year.
Q: How is the company taking advantage of market disruptions in terms of hiring and expenses? A: Scott Wylie noted that they have added 12 new front-office staff and 8 in product groups, with 10 being direct salespeople. They have implemented programs to accelerate new hires' productivity and have increased proactive client calls significantly. Julie Courkamp, COO, added that they have a program to help new hires quickly understand the company's products and culture.
Q: What is the outlook for expenses in the upcoming quarter? A: Scott Wylie mentioned that Q2 had some one-time expenses related to technology and data processing. They expect higher expenses in Q3 due to new hires and potential incentive compensation from growth. David Weber, CFO, added that there is no specific seasonality in Q3 expenses, but dynamics like hiring and incentive comp could cause fluctuations.
Q: What are your thoughts on deposit costs and competition in the current environment? A: David Weber stated that the cost of deposit acquisition has increased due to market disruptions, but they haven't seen pressure from existing depositors on rates. The focus is on improving the mix of deposits, particularly non-interest-bearing deposits, rather than changing rates.
Q: How do you expect interest rate changes to affect your margin expectations? A: Scott Wylie explained that they maintain a relatively neutral balance sheet profile, slightly leaning liability sensitive. A 25 basis-point rate increase would have a minimal impact, potentially benefiting them by 1 to 2 basis points in net interest margin.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
