MYFW Stock Forecast & Price Target

First Western Financial Inc has demonstrated a strong performance in its wealth management segment, reflected in a 3.3% quarter-over-quarter increase in core fees, totaling $7.1 million, bolstered by a robust mortgage gain on sales of $1.1 million. The company's net interest margin (NIM) experienced significant expansion, with an increase of 16 basis points to 2.61%, driven by an improvement in loan yields alongside a reduction in deposit costs. Additionally, the net interest income (NII) rose by 3% quarter-over-quarter, further contributing to a positive financial outlook for the company.

First Western Financial is facing challenges in revenue generation, as evidenced by the lower-than-expected loan production, which dropped 24% quarter-over-quarter to $71 million, directly impacting the company's overall profitability. Additionally, although there was a decline in non-performing assets (NPAs) and loans (NPLs), the overall stability of these metrics does not compensate for the stagnant loan growth, suggesting potential weaknesses in the credit demand landscape. Furthermore, the company's expectation of benefiting from operating leverage may not materialize, as lower revenue growth could further suppress projected earnings, leading to a cautious outlook on the stock's financial health.