Yahoo Finance First Western Financial (MYFW) Gains on New Share Buyback Plan
Shares of First Western Financial, Inc. MYFW jumped 5.2% in response to the announcement of a share repurchase program and positive broader market sentiments. Following no objection from the Federal Reserve, the company’s board of directors approved a stock buyback plan.
Under the plan, First Western Financial is authorized to repurchase up to 2 million shares, representing almost 2% of its outstanding shares. The program will be in effect for one year.
Scott C. Wylie, the CEO of MYFW, said, “We believe that repurchasing our shares is an attractive long-term investment for the Company, is in the best interest of our shareholders, and represents an opportunity to deploy capital that will be accretive to both earnings and tangible book value per share.”
First Western Financial doesn’t pay dividends. Over the years, First Western Financial has expanded organically and through strategic acquisitions. In 2021, the company acquired Teton Financial Services, Inc. The transaction expanded the company’s presence in Wyoming.
Going forward, First Western Financial intends to grow its banking business both organically and through the buyouts of other banks and financial service providers, which may include entry into new markets. We believe the expanded footprint, and product and balance sheet diversification stemming from such expansion moves are likely to support MYFW’s financials.
First Western Financial has a solid balance sheet position. As of Mar 31, 2024, the company had total borrowings of $121.9 million, and total cash and cash equivalents of $257.9 million. Given a robust liquidity position and decent earnings strength, the bank is expected to continue with efficient capital distribution activities.
Over the past three months, shares of First Western Financial have surged 21% against a decline of 1.3% of the industry it belongs to.
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At present, MYFW carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Banks That Announced Share Buyback Plans
Northfield Bancorp, Inc. NFBK announced a new share repurchase program. Under the plan, the board of directors authorized the buyback of $10 million worth of shares. The plan is set to begin on Jun 18, 2024, with no set expiration.
This plan is in succession to the $5 million repurchase plan approved this April. Prior to the April share buyback plan, NFBK had announced a share repurchase program in November 2023, authorizing the buyback of up to $7.5 million worth of shares.
Cathay General Bancorp. CATY announced a new share repurchase program. Under the plan, the board of directors authorized the buyback of $125 million worth of shares. There is no set expiration for the program.
Previously, CATY had announced a share repurchase program in May 2022, authorizing the buyback of up to $125 million worth of shares. The company completed this program in February 2023, with the repurchase of 2.9 million shares at an average cost of $43.14.
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