First Western Financial Inc. Files Q3 2024 10-Q

TL;DR

FWF's Q3 2024 10-Q is in. Check financials.

AI Summary

First Western Financial Inc. filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and position. Key financial data and disclosures relevant to investors are presented within this report.

Why It Matters

This filing provides investors with a detailed look at First Western Financial's financial health and operational performance for the third quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: medium — As a financial institution, First Western Financial is subject to various market and regulatory risks inherent in the banking sector.

Key Players & Entities

• First Western Financial Inc (company) — Filer of the 10-Q
• 2024-09-30 (date) — End of the reporting period
• 2024-11-01 (date) — Filing date
• DENVER, CO (location) — Company headquarters

FAQ

Filing Documents

• myfw-20240930.htm (10-Q) — 4943KB
• myfw-20240930x10qxexx311.htm (EX-31.1) — 9KB
• myfw-20240930x10qxexx312.htm (EX-31.2) — 9KB
• myfw-20240930x10qxexx321.htm (EX-32.1) — 4KB
• myfw-20240930x10qxexx322.htm (EX-32.2) — 4KB
• 0001327607-24-000183.txt ( ) — 21730KB
• myfw-20240930.xsd (EX-101.SCH) — 90KB
• myfw-20240930_cal.xml (EX-101.CAL) — 101KB
• myfw-20240930_def.xml (EX-101.DEF) — 552KB
• myfw-20240930_lab.xml (EX-101.LAB) — 958KB
• myfw-20240930_pre.xml (EX-101.PRE) — 782KB
• myfw-20240930_htm.xml (XML) — 5470KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 6 Condensed Consolidated Balance Sheets as of September 30, 2024 (Unaudited) and December 31, 2023 6 Condensed Consolidated Statements of Income (Unaudited) for the Three and Nine Months Ended September 30, 2024 and September 30, 2023 7 Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Nine Months Ended September 30, 2024 and September 30, 2023 8 Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) for the Three and Nine Months Ended September 30, 2024 and September 30, 2023 9 Condensed Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2024 and September 30, 2023 10 Notes to Condensed Consolidated Financial Statements (Unaudited) 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 51 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 84 Item 4.

Controls and Procedures

Controls and Procedures 85

OTHER INFORMATION

PART II. OTHER INFORMATION 86 Item 1.

Legal Proceedings

Legal Proceedings 86 Item 1A.

Risk Factors

Risk Factors 86 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 86 Item 3. Defaults upon Senior Securities 86 Item 4. Mine Safety Disclosures 86 Item 5. Other Information 86 Item 6. Exhibits 87

SIGNATURES

SIGNATURES 88 2 Table of Contents Important Notice about Information in this Quarterly Report Unless we state otherwise or the context otherwise requires, references in this Quarterly Report to "we," "our," "us," "the Company" and "First Western" refer to First Western Financial, Inc. and its consolidated subsidiaries, including First Western Trust Bank, which we sometimes refer to as "the Bank" or "our Bank." The information contained in this Quarterly Report is accurate only as of the date of this Quarterly Report on Form 10-Q and as of the dates specified herein. 3 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "would," and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control, particularly with regard to developments related to soundness of other financial institutions. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual re

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS FIRST WESTERN FINANCIAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share amounts) September 30, 2024 December 31, 2023 Assets Cash and cash equivalents: Cash and due from banks $ 18,979 $ 7,284 Interest-bearing deposits in other financial institutions 257,243 247,158 Total cash and cash equivalents 276,222 254,442 Held-to-maturity debt securities, net of allowance for credit losses of $ 71 and $ 71 , (fair value of $ 70,826 and $ 66,617 ), respectively 76,745 74,102 Correspondent bank stock, at cost 5,746 7,155 Mortgage loans held for sale, at fair value 12,324 7,254 Loans held for sale, at fair value 473 — Loans (includes $ 8,646 and $ 13,726 measured at fair value, respectively) 2,383,199 2,530,915 Allowance for credit losses ( 18,796 ) ( 23,931 ) Loans, net 2,364,403 2,506,984 Premises and equipment, net 24,350 25,256 Accrued interest receivable 10,455 11,428 Accounts receivable 4,864 5,095 Other receivables 10,397 4,467 Other real estate owned, net 37,036 — Goodwill and other intangible assets, net 31,684 31,854 Deferred tax assets, net 4,075 6,407 Company-owned life insurance 16,849 16,530 Other assets 36,325 24,488 Total assets $ 2,911,948 $ 2,975,462 Liabilities Deposits: Noninterest-bearing $ 473,576 $ 482,579 Interest-bearing 2,029,478 2,046,460 Total deposits 2,503,054 2,529,039 Borrowings: Federal Home Loan Bank and Federal Reserve borrowings 62,373 125,711 Subordinated notes 52,508 52,340 Accrued interest payable 3,339 3,793 Other liabilities 41,843 21,841 Total liabilities 2,663,117 2,732,724 Shareholders' Equity Preferred stock - no par value; 10,000,000 shares authorized; 0 issued and outstanding — — Common stock - no par value; 90,000,000 shares authorized; 9,664,101 and 9,581,183 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively — — Additional paid-in capital 193,274 192,894 Retained earnings 5

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View this 10-Q filing on SEC EDGAR