First Western Financial NIM expands 17bps as revenue tops estimates

First Western Financial reported quarterly revenue that topped analyst expectations while delivering an expansion in net interest margin, though earnings per share fell slightly short of forecasts in results released after market close on Thursday.

The Denver-based bank holding company posted revenue of $26.7 million, beating estimates by 4.1%. Net interest margin—a closely watched profitability metric for banks—improved 17 basis points sequentially to reach 2.71%, while net interest income grew 5.6% quarter-over-quarter to $20.6 million.

Earnings per share came in at $0.34, missing analyst expectations by $0.02 but marking improvement from the $0.32 reported in the third quarter. The company's shares were little changed in Thursday trading, with investors weighing the top-line strength against the earnings miss.

First Western Financial operates as a wealth management and private banking focused financial services company, serving high-net-worth individuals and institutions. The bank's net interest margin improvement during the quarter reflects better yields on its loan portfolio relative to deposit costs, a positive sign for banking sector profitability in a rate-sensitive environment.

Analysts had projected earnings per share of $0.47 and revenue of approximately $27.5 million ahead of the release, suggesting that while revenue performance was solid, profitability pressures weighed on the bottom line. Three analysts cover the stock, with ratings split between strong buy, buy, and hold recommendations, according to market data.

The company's management has indicated expectations for value creation in 2026, according to statements included in the earnings materials. First Western is scheduled to host a conference call on Friday at 12:00 p.m. Eastern Time to discuss the results in greater detail with investors.

First Western Financial's stock, which trades on the NASDAQ under ticker MYFW, has a market capitalization of approximately $256 million. The shares have traded within a 52-week range of $17.52 to $28.00, with the current price near the upper end of that band. The stock carries a price-to-earnings ratio of 20.61 times trailing earnings.

The regional banking sector has faced challenges over the past year as the Federal Reserve's interest rate increases compressed net interest margins at many institutions. First Western's ability to expand its margin quarter-over-quarter suggests the bank may be better positioned than some peers to navigate the higher rate environment, with net interest income growth of 5.6% providing evidence of core business momentum.

Investor reaction in Friday's session will provide insight into whether the market views the sequential earnings improvement and margin expansion as sufficient to offset the earnings miss. The conference call may also shed light on management's strategy for achieving the 2026 value creation objectives mentioned in the earnings release.