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Loan Boom Fuels First Western's 88% Net Income Growth
24 Oct
Summary
- Net income climbed 88% to $6.0 million, driven by margin expansion.
- Total loans grew 3.5% to $2.81 billion, fueled by residential and C&I portfolios.
- Net interest margin expanded to 2.95%, boosting net interest income.
First Western Financial, Inc. (NASDAQ:MYFW) announced a substantial 88% increase in net income, reaching $6.0 million for the third quarter of 2026. This impressive growth was primarily driven by an expanded net interest margin and accelerated loan portfolio expansion. Total loans held for investment rose by 3.5% to $2.81 billion, bolstered by significant increases in both the 1-4 family residential and commercial and industrial portfolios.
The bank's net interest margin improved to 2.95%, a five basis point increase from the prior quarter, directly contributing to a 5.5% rise in net interest income to $23.0 million. Despite a decrease in non-interest income, largely due to lower mortgage origination volumes, overall gross revenue saw a 2.8% increase. Management highlighted disciplined expense control, leading to an improved efficiency ratio of 72.2% and a decrease in the non-performing asset ratio to 0.39%.
