First Western Financial Inc. (NASDAQ: MYFW) shares were down in afternoon trading, last at about $24.30, off roughly 1.0% on the day amid light volume, underperforming the broader market. The stock has traded in a 52-week range of roughly $17.52 to $28.00 and in recent sessions has shown pressure around the mid-to-upper portion of that range.
Quarterly Results
First Western Financial reported a fourth quarter 2025 net income available to common shareholders of $3.3 million, or $0.34 per diluted share, compared with $3.2 million, or $0.32 per share, in the third quarter of 2025 and $2.7 million, or $0.28 per share, in the fourth quarter of 2024.
Net interest income rose to approximately $20.6 million in the quarter, up about 5.6% from the prior quarter, while net interest margin expanded to 2.71% from 2.54% in Q3. Total non-interest income of about $6.1 million was lower than in the prior quarter, and non-interest expense increased modestly.
Total loans held for investment grew to roughly $2.65 billion, up 2.3% sequentially, while deposits fell about 3.5% to roughly $2.75 billion, reflecting fluctuations in higher-cost money market and non-interest-bearing accounts. Asset quality metrics improved: non-performing assets as a percentage of total assets declined, and allowance for credit losses remained stable.
Compared with the fourth quarter of 2024, net income and diluted EPS reflect year-over-year growth, while net interest income and margin have steadily improved over the past year. Tangible book value per share was modestly higher than a year ago.
Sector and Macro Pressure
First Western Financial, though a regional banking holding company rather than a pure software/SaaS firm, competes in the broader financial sector increasingly sensitive to macroeconomic conditions. Higher interest rates and margin pressures, deposit competition, and evolving credit conditions continue to affect net interest income and asset quality trends for banks broadly. In the broader market, caution among investors toward financial services stocks has been influenced by concerns around slowing loan demand, deposit cost pressures, and a flattening yield environment.
Outlook and Guidance
Management noted continued disciplined credit underwriting and steady loan growth, supported by improving net interest margins and stable asset quality. The company highlighted its capital position remains solid with regulatory ratios above minimum requirements. First Western has taken steps to manage expenses and improve operational efficiency, as evidenced by a lower efficiency ratio compared with year-ago levels.