DENVER - First Western Financial , Inc. (NASDAQ: NASDAQ:MYFW), a financial services company, announced Monday that its Board of Directors has authorized a new stock repurchase program. Under this program, the company may buy back up to 200,000 shares of its common stock, which is approximately 2% of its outstanding shares.
The Federal Reserve Board has reviewed the plan and offered no objections to the repurchase program. First Western's CEO, Scott C. Wylie, expressed that the buyback represents "an attractive long-term investment for the Company" and is in the shareholders' best interest, with the expectation of being accretive to earnings and tangible book value per share.
The repurchase transactions may occur on the open market or through privately negotiated deals, adhering to the applicable securities laws. The program's specifics, such as the timing and the number of shares to be repurchased, will depend on several market-related factors, including share price and trading volume. The company reserves the right to suspend or discontinue the program at any time without prior notice.
First Western, headquartered in Denver, operates across Colorado, Arizona, Wyoming, California, and Montana, offering a range of wealth management services and banking products. The company's common stock trades on the Nasdaq Global Select Market.
This new stock repurchase program is set to last for one year, and it follows the company's broader financial strategies as outlined in its public filings. As with any market-related activity, the repurchase program is subject to various external factors and uncertainties that could affect First Western's financial performance.
Investors and stakeholders should note that while the company has provided forward-looking statements about its financial strategies and performance, these statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations. These forward-looking statements are based on assumptions about future events and should be considered with caution. First Western Financial, Inc. has disclosed these plans in a press release statement.
In other recent news, First Western Financial Inc. reported a net income of $2.5 million, or $0.26 per diluted share, in Q1 2024. Despite a decline in total loans, particularly in the commercial and industrial sectors, the company has noted an improvement in asset quality and an increase in non-interest income, primarily due to successes in wealth management and mortgage banking. The company's focus is on expanding these sectors and maintaining full banking relationships with high-quality clients.
In further developments, the company has added new mortgage loan originators to boost loan production and plans to capitalize on increased loan demand when the economic and interest rate climate becomes more favorable. Despite aggressive pricing from community banks and credit unions potentially leading to flat loan growth in the second quarter, First Western Financial Inc. remains optimistic about its potential in wealth management and mortgage banking.
CEO Scott Wylie has emphasized the importance of loan production and deposit account stabilization for net interest margin expansion. Furthermore, he expressed confidence in resolving non-performing assets in 2024 and anticipates better results from the rebuilding of teams in Arizona.
InvestingPro Insights
First Western Financial, Inc. (NASDAQ: MYFW) has recently announced a new share buyback initiative, signaling confidence in the company's financial health and future prospects. In light of this development, certain metrics and analyst insights from InvestingPro provide a deeper understanding of the company's position. With a market capitalization of $161.93 million and a current P/E ratio standing at 42.41, First Western Financial appears to be trading at a high earnings multiple, which could reflect investor optimism about future earnings growth.
An important metric to consider is the company's revenue in the last twelve months as of Q1 2024, which stands at $80.28 million. Still, this reflects a notable decline of 24.97% in revenue growth over the period, indicating potential challenges in the company's operational environment. Despite this, analysts have revised their earnings upwards for the upcoming period, suggesting that the company's strategies may counterbalance the recent downturn in revenue.
InvestingPro Tips suggest that First Western Financial is expected to grow its net income this year and that analysts predict the company will be profitable within the same timeframe. These insights, along with the company's strong return over the last three months, which saw a 21.08% increase, may offer investors a reason for cautious optimism. Moreover, it is worth noting that the company does not pay a dividend, which could be a factor for income-focused investors to consider.
For those looking for a more comprehensive analysis, there are additional tips available on InvestingPro, which can be accessed through a Pro and Pro+ subscription. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly subscription, and benefit from the full range of insights and metrics that could help inform investment decisions regarding First Western Financial, Inc.
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