First Western reported a solid level of loan production in diverse markets and industries with an increase in book value and tangible book value per share. The company used its strong capital position to repurchase shares, accretive to tangible book value per share.

Net income in the third quarter increased by 45% from the previous year, with a 1.2% rise in tangible book value per share. Loan production was well diversified, with a significant increase in residential and commercial real estate portfolios, and a 6.38% average rate on new loans.

Total deposits increased by $320 million in the quarter, driven by new accounts and existing client balances. Non-interest-bearing and interest-bearing deposits both increased, with successful execution of the deposit gathering strategy. Trust and investment management assets decreased by $64 million, offset by improved market conditions in investment agency accounts.

Gross revenue saw an 8.7% increase from the prior quarter, driven by net interest income and non-interest income growth. Net interest income rose for the fourth consecutive quarter by 8.9%, with a net interest margin of 2.54%. Non-interest income increased by 8.5%, primarily due to higher trust and investment management fees and gain on sale of mortgage loans.

Expenses increased by less than $1 million from the prior quarter, with most areas consistent with prior quarters. Asset quality remained stable in the loan portfolio, with a slight increase in non-performing loans and non-performing assets. Loan demand met underwriting and pricing criteria, with a slight increase in allowance coverage.

First Western is optimistic about growth opportunities in its markets, with a focus on balance sheet growth, net interest margin expansion, fee income growth, and operating leverage. The company continues to see steady improvement in financial performance and aims to create further value for shareholders going forward.

Read more at Yahoo Finance: First Western Earnings Call Transcript