First Western Financial Inc (NASDAQ: MYFW)

First Western Financial, Inc. (MYFW), a financial holding company headquartered in Denver, Colorado, operates as a premier private trust bank in the Western United States. The company's mission is to be the best private bank for the Western wealth management client, catering to successful entrepreneurs, professionals, and high net worth individuals or families, as well as their businesses and philanthropic organizations.

First Western's main business activities revolve around providing a fully integrated suite of wealth management services on its private trust bank platform. The company's business model is built around its proprietary ConnectView approach, which looks holistically across a client's current and projected financial situation to provide financial solutions. First Western delivers a broad array of wealth management products and services through its boutique private trust bank offices, including lending, cash, securities, and other loan products, as well as trust, wealth planning, and investment management services.

The company generates a significant portion of its revenues from non-interest income, primarily from trust, investment management, and other advisory services, as well as the origination and sale of mortgage loans. The balance of its revenue is generated from net interest income, derived from traditional banking products and services. First Western's lending activities are concentrated in Colorado, Arizona, Wyoming, Montana, and California, with approximately 83.2% of its loan portfolio as of December 31, 2023, made to borrowers who live in or conduct business in those states.

First Western believes it has developed a unique approach to private banking, combining sophisticated wealth management products and services with high-touch and personalized experience. The company's focus on relationship-based banking and its ability to provide a comprehensive suite of financial solutions set it apart from larger financial institutions and non-bank financial services companies. Its key competitors include other private banks and financial institutions that operate in the Western United States, such as Wells Fargo, Bank of America, and U.S. Bank.

First Western's customers are typically successful entrepreneurs, professionals, and high net worth individuals or families, as well as their businesses and philanthropic organizations. The company's clients are drawn to its boutique private trust bank offices, which provide a high-touch and personalized experience, as well as its ability to provide a comprehensive suite of financial solutions.

In terms of its financial performance, First Western reported total assets of $3.3 billion as of December 31, 2023, with total deposits of $2.53 billion and total loans of $1.43 billion. The company's net income for the year ended December 31, 2023, was $13.4 million, with a return on average assets of 0.41% and a return on average equity of 6.45%.

Regulatory capital requirements are a significant aspect of First Western's operations. The company is subject to the Basel III Capital Rules, which set forth minimum capital requirements for banking organizations. First Western is also subject to the Community Reinvestment Act, which requires banks to provide credit and other financial services to low- and moderate-income individuals and communities.

First Western's risk management framework includes policies and procedures for credit risk, market risk, liquidity risk, operational risk, and compliance risk, as well as a risk management committee that oversees the company's risk management activities. The company has invested in a range of technology solutions to support its business operations, including core banking systems, online banking platforms, and mobile banking apps. First Western has also implemented a range of security measures to protect its customers' data and prevent cyber attacks.

In terms of its human capital, First Western has a team of experienced professionals who are dedicated to providing exceptional service to its customers. The company's employees are trained to provide personalized service and to understand the unique needs of each customer. First Western offers a range of employee benefits and development opportunities to support the growth and development of its employees.