First Western Q2 net income rises

Overview

• First Western Q2 net income rises to $2.5 mln from $1.1 mln prior year

• Net interest margin rises to 2.67% from 2.35% in Q2 of last year

Outlook

• Company expects solid balance sheet growth over second half of year

• First Western anticipates continued net interest margin expansion

• Company aims to maintain tight expense control

Result Drivers

• LOAN GROWTH - Strong loan production across diversified markets and portfolios drove a 4.7% q-o-q increase in total loans

• NET INTEREST MARGIN - Increase in net interest margin to 2.67% due to improved asset yield and lower deposit costs

• EXPENSE MANAGEMENT - Q-o-Q decrease in non-interest expense by $0.3 mln, primarily due to reduced salaries and benefits

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for First Western Financial Inc is $25.50, about 2.9% above its July 23 closing price of $24.77

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX762PxR