On its third-quarter 2026 earnings call, held on Oct. 23, 2026, First Western (NASDAQ:MYFW) reported a 15% quarter-over-quarter increase in pre-tax, pre-provision net income, driven by loan growth, expanding interest margins, and lower expenses. For long-term investors, the bank’s ability to capitalize on local market consolidation while maintaining loan pricing discipline provides a clear path to higher return on average assets (ROAA), a key measure of bank profitability.
Three things management said stand out.
1. Banking Sector Mergers Drive Talent and Client Acquisition
Regional bank mergers and acquisitions (M&A) are disrupting local markets, allowing the firm to hire senior talent and capture new commercial clients. This hiring momentum supported $163 million in new loan originations during the third quarter.
Continued M&A disruption in our market is creating attractive opportunities to add experienced banking talent and new client relationships.
— Scott Wylie, Chairman and Chief Executive Officer
2. Restructured Wealth Division Stabilizes Non-Interest Revenue
While high interest rates slowed mortgage originations, fee growth in planning, trust, and investment management (PTIM) offsets that drag. Management reorganized the wealth segment over the past two years, leading to a 2.6% sequential increase in PTIM fees.
I think that’s really a very bright spot in our fee income story that’s, kind of, buried in some of the headwinds from mortgages and our insurance sales.
— Scott Wylie, Chairman and Chief Executive Officer
3. Loan Repricing Discipline Drives Margin Expansion
The bank is expanding its net interest margin (NIM), which measures the spread between interest earned on loans and interest paid on deposits. Higher yields on new loan originations and repricing existing loans provide sustained tailwinds for interest income.
We had a net interest margin expansion of 26 basis points in 2025 and another 24 basis points in expansion so far in 2026. This will continue.
— Scott Wylie, Chairman and Chief Executive Officer
Looking Ahead
Credit pipelines are expanding faster than in the first half of the year, supporting management’s target for 10% loan growth in 2026 and a 15% rate heading into 2027. Local market disruption and strict relationship banking requirements give First Western distinct operational leverage, while pricing discipline protects profitability.
Our loan pipeline remains strong and should fuel solid loan growth going forward.
— Scott Wylie, Chairman and Chief Executive Officer