8-K
First Western Financial Inc (MYFW)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 23, 2025
FIRST WESTERN FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
| Colorado | 001-38595 | 37-1442266 |
|---|---|---|
| (State or other jurisdiction of<br>incorporation or organization) | (Commission<br>File Number) | (I.R.S. Employer<br>Identification No.) |
| 1900 16th Street, Suite 1200<br><br>Denver, Colorado | 80202 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: 303.531.8100
Former name or former address, if changed since last report: Not Applicable
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| o | Emerging growth company |
|---|---|
| o | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered |
|---|---|---|
| Common Stock, no par value | MYFW | NASDAQ Stock Market LLC |
Item 2.02 Results of Operations and Financial Condition.
On October 23, 2025, First Western Financial, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended September 30, 2025. A copy of the press release is furnished as Exhibit 99.1 and is incorporated by reference herein.
The information in this Item 2.02, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.
Item 7.01 Regulation FD Disclosure.
The Company intends to hold an investor call and webcast to discuss its financial results for the third quarter ended September 30, 2025 on Friday, October 24, 2025, at 10:00 a.m. Mountain Time. The Company’s presentation to analysts and investors contains additional information about the Company’s financial results for the third quarter ended September 30, 2025 and is furnished as Exhibit 99.2 and is incorporated by reference herein.
The information in this Item 7.01, including Exhibit 99.2, is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit<br>Number | Description |
|---|---|
| 99.1 | Press Release issued by First Western Financial, Inc. dated October 23, 2025 |
| 99.2 | First Western Financial, Inc. Earnings Presentation |
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| FIRST WESTERN FINANCIAL, INC. | |
|---|---|
| Date: October 23, 2025 | By: /s/ Scott C. Wylie |
| Scott C. Wylie | |
| Chairman, Chief Executive Officer and President |
3
Document
Exhibit 99.1
First Western Reports Third Quarter 2025 Financial Results
Third Quarter 2025 Summary
•Net income available to common shareholders of $3.2 million in Q3 2025, compared to $2.5 million in Q2 2025
•Diluted earnings per share of $0.32 in Q3 2025, compared to $0.26 in Q2 2025
•Total deposits increased $320 million, or 12.6%, from $2.53 billion in Q2 2025 to $2.85 billion in Q3 2025
•Net interest income increased $1.6 million, or 8.9%, from $17.9 million in Q2 2025 to $19.5 million in Q3 2025
•Non-interest income increased $0.5 million, or 7.9%, from $6.3 million in Q2 2025 to $6.8 million in Q3 2025
Denver, Colo., October 23, 2025 – First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the third quarter ended September 30, 2025.
Net income available to common shareholders was $3.2 million, or $0.32 per diluted share, for the third quarter of 2025. This compares to net income of $2.5 million, or $0.26 per diluted share, for the second quarter of 2025, and net income of $2.1 million, or $0.22 per diluted share, for the third quarter of 2024.
Scott C. Wylie, CEO of First Western, commented, “We executed well in the third quarter and saw positive trends in many areas including loan and deposit growth, an increase in net interest income, well managed expenses, and generally stable asset quality, which resulted in an increase in our level of profitability. While maintaining our disciplined underwriting and pricing criteria, we had a very strong quarter of loan production, which was well diversified across our markets and loan portfolios. Our strong loan production reflects the healthy economic conditions we continue to see across our markets, as well as the contribution of banking talent we have added over the past few years, while we also continue to add new deposit relationships. Our improving financial performance and continued prudent balance sheet management resulted in increases in both our book value and tangible book value per share during the third quarter.
“Our loan pipeline remains healthy and we expect to see solid loan growth in the fourth quarter, along with a continuation of the positive trends we are seeing in key areas, which we believe will result in solid financial performance for our shareholders,” said Mr. Wylie.
| For the Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| September 30, | June 30, | September 30, | |||||||
| (Dollars in thousands, except per share data) | 2025 | 2025 | 2024 | ||||||
| Earnings Summary | |||||||||
| Net interest income | $ | 19,454 | $ | 17,884 | $ | 15,568 | |||
| Provision for credit losses | 2,257 | 1,773 | 501 | ||||||
| Total non-interest income | 6,842 | 6,305 | 6,972 | ||||||
| Total non-interest expense | 20,074 | 19,099 | 19,368 | ||||||
| Income before income taxes | 3,965 | 3,317 | 2,671 | ||||||
| Income tax expense | 779 | 814 | 537 | ||||||
| Net income available to common shareholders | 3,186 | 2,503 | 2,134 | ||||||
| Basic earnings per common share | 0.33 | 0.26 | 0.22 | ||||||
| Diluted earnings per common share | 0.32 | 0.26 | 0.22 | ||||||
| Return on average assets (annualized) | 0.40 | % | 0.36 | % | 0.30 | % | |||
| Return on average shareholders' equity (annualized) | 4.92 | 3.90 | 3.43 | ||||||
| Return on tangible common equity (annualized)(1) | 5.54 | 4.40 | 3.93 | ||||||
| Net interest margin | 2.54 | 2.67 | 2.32 | ||||||
| Efficiency ratio(1) | 76.38 | 78.83 | 84.98 |
____________________
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Operating Results for the Third Quarter 2025
Revenue
Total income before non-interest expense was $24.0 million for the third quarter of 2025, an increase of 7.1% from $22.4 million for the second quarter of 2025. Gross revenue(1) was $26.3 million for the third quarter of 2025, an increase of 8.7% from $24.2 million for the second quarter of 2025. Relative to the second quarter of 2025, the increase in Total income before non-interest expense was primarily driven by an increase in Net interest income and Non-interest income, partially offset by an increase in Provision for credit losses. Relative to the third quarter of 2024, Total income before non-interest expense increased 9.1% from $22.0 million and Gross revenue increased 15.9% from $22.7 million. Relative to the third quarter of 2024, the increase in Total income before non-interest expense was primarily driven by an increase in Net interest income, partially offset by an increase in Provision for credit losses.
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Net Interest Margin
Net interest margin for the third quarter of 2025 decreased 13 basis points to 2.54% from 2.67% reported in the second quarter of 2025, primarily due to an unfavorable mix shift in average interest-earning asset balances and an increase in cost of funds. The increase in cost of funds was driven by an unfavorable mix shift in average deposit balances.
The yield on interest-earning assets decreased 2 basis points to 5.59% from 5.61% reported in the second quarter of 2025 and the cost of interest-bearing liabilities increased 4 basis points to 3.67% from 3.63% reported in the second quarter of 2025.
Relative to the third quarter of 2024, net interest margin increased 22 basis points from 2.32%, primarily due to a 33 basis point decrease in total cost of funds as a result of the lower interest rate environment.
Net Interest Income
Net interest income for the third quarter of 2025 was $19.5 million, an increase of 8.9% from $17.9 million for the second quarter of 2025. The increase quarter over quarter was primarily driven by an increase in average interest-earnings assets, partially offset by a 13 basis point decrease in net interest margin. Relative to the third quarter of 2024, Net interest income increased 25.0% from $15.6 million. The increase compared to the third quarter of 2024 was primarily driven by a 22 basis point increase in net interest margin and an increase in average interest-earning assets.
Non-interest Income
Non-interest income for the third quarter of 2025 was $6.8 million, an increase of 7.9% from $6.3 million in the second quarter of 2025. The increase was primarily driven by increases in Net gain on mortgage loans, Risk management and insurance fees, and Trust and investment management fees.
Relative to the third quarter of 2024, Non-interest income decreased $0.1 million, primarily driven by decreases in Risk management and insurance fees, Trust and investment management fees, and Bank fees, partially offset by an increase in Net gain on loans accounted for under the fair value option.
Non-interest Expense
Non-interest expense for the third quarter of 2025 was $20.1 million, an increase of 5.2% from $19.1 million in the second quarter of 2025. The increase was primarily driven by an increase in Salaries and employee benefits, partially offset by a decrease in Occupancy and equipment.
Relative to the third quarter of 2024, Non-interest expense increased 3.6% from $19.4 million, primarily driven by increases in Salaries and employee benefits and Data processing.
The Company’s efficiency ratio(1) was 76.4% in the third quarter of 2025, compared with 78.8% in the second quarter of 2025 and 85.0% in the third quarter of 2024.
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Income Taxes
The Company recorded Income tax expense of $0.8 million for the third quarter of 2025, compared to $0.8 million for the second quarter of 2025, and $0.5 million for the third quarter of 2024.
Loans
Total loans held for investment were $2.59 billion as of September 30, 2025, an increase of $50 million or 2.0% compared to June 30, 2025. Changes in the quarter included growth in the Non-owner occupied commercial real estate and 1-4 family residential portfolios, partially offset by decreases in the Construction and development and Commercial and industrial portfolios. Relative to the third quarter of 2024, total loans held for investment increased from $2.39 billion as of September 30, 2024, primarily driven by growth in the 1-4 family residential, Non-owner occupied commercial real estate, and Cash, securities, and other portfolios, partially offset by a decrease in the Construction and development portfolio.
Deposits
Total deposits were $2.85 billion as of September 30, 2025, an increase of 12.6% from $2.53 billion as of June 30, 2025. The increase was primarily driven by increases in money market and Noninterest-bearing deposit accounts, partially offset by a decrease in time deposit accounts. Relative to the third quarter of 2024, Total deposits increased from $2.50 billion as of September 30, 2024, primarily driven by an increase in money market deposit accounts, partially offset by decreases in time deposit accounts and Noninterest-bearing deposit accounts.
Borrowings
Federal Home Loan Bank (“FHLB”) and Federal Reserve borrowings were a combined $50.9 million as of September 30, 2025, a decrease of $112.5 million from $163.4 million as of June 30, 2025. The change when compared to June 30, 2025 was primarily driven by a decrease in FHLB borrowings due to deposit growth outpacing loan growth during the quarter. Relative to the third quarter of 2024, borrowings decreased $11.5 million from $62.4 million as of September 30, 2024. The decrease in borrowings from September 30, 2024 was primarily driven by Bank Term Funding Program ("BTFP") payoffs.
Subordinated notes were $44.7 million as of September 30, 2025 and June 30, 2025. Subordinated notes decreased $7.8 million from $52.5 million as of September 30, 2024. Relative to the third quarter of 2024, the decrease was primarily due to the redemption of $8.0 million of subordinated notes that became eligible to call in the first quarter of 2025.
Assets Under Management
Assets Under Management (“AUM”) was $7.43 billion as of September 30, 2025, a decrease of $64 million, or 0.9%, from $7.50 billion as of June 30, 2025. The decrease in AUM during the quarter was primarily attributable to net withdrawals, partially offset by improved market conditions. Compared to September 30, 2024, total AUM decreased 0.4% from $7.47 billion.
Credit Quality
Non-performing assets totaled $22.7 million, or 0.70% of Total assets, as of September 30, 2025, compared to $18.8 million, or 0.62% of Total assets, as of June 30, 2025. The increase in non-performing assets during the quarter was due to the addition of one credit relationship to non-performing loans. As of September 30, 2024, non-performing assets totaled $52.1 million, or 1.79% of Total assets. Relative to the third quarter of 2024, the decrease in non-performing assets was primarily driven by the sale of two OREO properties, partially offset by additions to non-performing loans. OREO totaled $4.4 million as of September 30, 2025 and June 30, 2025, a decrease of $32.6 million from $37.0 million as of September 30, 2024.
Non-performing loans totaled $18.3 million as of September 30, 2025, an increase of $3.9 million from $14.4 million as of June 30, 2025. As of September 30, 2024, non-performing loans totaled $15.0 million. Relative to the second quarter of 2025 and the third quarter of 2024, the increase was primarily driven by the addition of one credit relationship.
During the third quarter of 2025, the Company recorded provision expense of $2.3 million, compared to $1.8 million in the second quarter of 2025 and $0.5 million in the third quarter of 2024. The provision expense recorded in the third quarter of 2025 increased the Allowance for credit losses as a percentage of Total loans from 75 basis points to 81 basis points.
Capital
As of September 30, 2025, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of September 30, 2025, the Bank was classified as “well capitalized,” as summarized in the following table:
| September 30, | ||
|---|---|---|
| 2025 | ||
| Consolidated Capital | ||
| Tier 1 capital to risk-weighted assets | 9.80 | % |
| Common Equity Tier 1 ("CET1") to risk-weighted assets | 9.80 | |
| Total capital to risk-weighted assets | 12.50 | |
| Tier 1 capital to average assets | 7.51 | |
| Bank Capital | ||
| Tier 1 capital to risk-weighted assets | 11.20 | % |
| CET1 to risk-weighted assets | 11.20 | |
| Total capital to risk-weighted assets | 12.04 | |
| Tier 1 capital to average assets | 8.59 |
Book value per common share increased 1.1% from $26.64 as of June 30, 2025 to $26.92 as of September 30, 2025. Book value per common share increased 4.5% from $25.75 as of September 30, 2024.
Tangible book value per common share(1) increased 1.2% from $23.39 as of June 30, 2025, to $23.68 as of September 30, 2025. Tangible book value per common share increased 5.4% from $22.47 as of September 30, 2024.
During the three months ended September 30, 2025, the Company repurchased 13,946 shares for $0.3 million.
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Conference Call, Webcast and Slide Presentation
The Company will host a conference call and webcast at 10:00 a.m. MT/ 12:00 p.m. ET on Friday, October 24, 2025. Telephone access: https://register-conf.media-server.com/register/BI5ef1816ed85c49699ece3c022b6c7476
A slide presentation relating to the third quarter 2025 results will be accessible prior to the scheduled conference call. The slide presentation and webcast of the conference call can be accessed on the Events and Presentations page of the Company’s investor relations website at https://myfw.gcs-web.com.
About First Western
First Western is a financial services holding company headquartered in Denver, Colorado, with operations in Colorado, Arizona, Wyoming, California, and Montana. First Western and its subsidiaries provide a fully integrated suite of wealth management services on a private trust bank platform, which includes a comprehensive selection of deposit, loan, trust, wealth planning and investment management products and services. First Western’s common stock is traded on the Nasdaq Global Select Market under the symbol “MYFW.” For more information, please visit www.myfw.com.
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include “Tangible Common Equity,” “Tangible Common Book Value per Share,” “Return on Tangible Common Equity,” “Efficiency Ratio,” and “Gross Revenue”. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies. Reconciliation of non-GAAP financial measures to GAAP financial measures are provided at the end of this press release.
Forward-Looking Statements
Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “position,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “opportunity,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Those risks and uncertainties include, without limitation, the risk of geographic concentration in Colorado, Arizona, Wyoming, California, and Montana; the risk of changes in the economy affecting real estate values and liquidity; the risk in our ability to continue to originate residential real estate loans and sell such loans; risks specific to commercial loans and borrowers; the risk of claims and litigation pertaining to our fiduciary responsibilities; the risk of changes in interest rates could reduce our net interest margins and net interest income; increased credit risk, including as a result of deterioration in economic conditions, could require us to increase our allowance for credit losses and could have a material adverse effect on our results of operations and financial condition; the risk in our ability to maintain a strong core deposit base or other low-cost funding sources. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 7, 2025 (“Form 10-K”), and other documents we file with the SEC from time to time. We urge readers of this news release to review the “Risk Factors” section our Form 10-K and any updates to those risk factors set forth in our subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and our other filings with the SEC. Also, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today’s date, or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Contacts:
Financial Profiles, Inc.
Tony Rossi
310-622-8221
MYFW@finprofiles.com
IR@myfw.com
First Western Financial, Inc.
Condensed Consolidated Statements of Income (unaudited)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| September 30, | June 30, | September 30, | ||||
| (dollars in thousands, except per share amounts) | 2025 | 2025 | 2024 | |||
| Interest and dividend income: | ||||||
| Loans, including fees | $ | 37,701 | $ | 35,064 | $ | 35,337 |
| Loans accounted for under the fair value option | 64 | 85 | 141 | |||
| Investment securities | 1,387 | 819 | 708 | |||
| Interest-bearing deposits in other financial institutions | 3,468 | 1,377 | 1,770 | |||
| Dividends, restricted stock | 154 | 155 | 134 | |||
| Total interest and dividend income | 42,774 | 37,500 | 38,090 | |||
| Interest expense: | ||||||
| Deposits | 22,177 | 18,208 | 21,150 | |||
| Other borrowed funds | 1,143 | 1,408 | 1,372 | |||
| Total interest expense | 23,320 | 19,616 | 22,522 | |||
| Net interest income | 19,454 | 17,884 | 15,568 | |||
| Less: Provision for credit losses | 2,257 | 1,773 | 501 | |||
| Net interest income, after provision for credit losses | 17,197 | 16,111 | 15,067 | |||
| Non-interest income: | ||||||
| Trust and investment management fees | 4,629 | 4,512 | 4,728 | |||
| Net gain on mortgage loans | 1,394 | 1,187 | 1,451 | |||
| Bank fees | 312 | 293 | 392 | |||
| Risk management and insurance fees | 193 | 47 | 367 | |||
| Income on company-owned life insurance | 116 | 112 | 108 | |||
| Net gain (loss) on loans accounted for under the fair value option | 18 | 26 | (233) | |||
| Unrealized gain recognized on equity securities | 6 | 3 | 24 | |||
| Other | 174 | 125 | 135 | |||
| Total non-interest income | 6,842 | 6,305 | 6,972 | |||
| Total income before non-interest expense | 24,039 | 22,416 | 22,039 | |||
| Non-interest expense: | ||||||
| Salaries and employee benefits | 11,884 | 11,019 | 11,439 | |||
| Occupancy and equipment | 2,084 | 2,224 | 2,126 | |||
| Professional services | 1,894 | 1,855 | 1,893 | |||
| Technology and information systems | 1,055 | 1,030 | 1,045 | |||
| Data processing | 1,251 | 1,166 | 1,101 | |||
| Marketing | 351 | 267 | 374 | |||
| Amortization of other intangible assets | 51 | 52 | 57 | |||
| Other | 1,504 | 1,486 | 1,333 | |||
| Total non-interest expense | 20,074 | 19,099 | 19,368 | |||
| Income before income taxes | 3,965 | 3,317 | 2,671 | |||
| Income tax expense | 779 | 814 | 537 | |||
| Net income available to common shareholders | $ | 3,186 | $ | 2,503 | $ | 2,134 |
| Earnings per common share: | ||||||
| Basic | $ | 0.33 | $ | 0.26 | $ | 0.22 |
| Diluted | 0.32 | 0.26 | 0.22 |
First Western Financial, Inc.
Condensed Consolidated Balance Sheets (unaudited)
| September 30, | June 30, | September 30, | ||||
|---|---|---|---|---|---|---|
| (dollars in thousands) | 2025 | 2025 | 2024 | |||
| Assets | ||||||
| Cash and cash equivalents: | ||||||
| Cash and due from banks | $ | 13,889 | $ | 12,353 | $ | 18,979 |
| Interest-bearing deposits in other financial institutions | 341,750 | 221,861 | 259,143 | |||
| Total cash and cash equivalents | 355,639 | 234,214 | 278,122 | |||
| Available-for-sale debt securities, at fair value (amortized cost of $49,407, $0, and $0, respectively) | 49,177 | — | — | |||
| Held-to-maturity debt securities (fair value of $93,589, $93,979 and $70,826, respectively), net of allowance for credit losses of $71 | 98,205 | 99,825 | 76,745 | |||
| Correspondent bank stock, at cost | 6,481 | 11,254 | 5,746 | |||
| Mortgage loans held for sale, at fair value | 21,806 | 24,151 | 12,324 | |||
| Loans held for sale, at fair value | — | — | 473 | |||
| Loans (includes $4,208, $5,099, and $8,646 measured at fair value, respectively) | 2,590,846 | 2,540,096 | 2,383,199 | |||
| Allowance for credit losses | (20,967) | (18,994) | (18,796) | |||
| Loans, net | 2,569,879 | 2,521,102 | 2,364,403 | |||
| Premises and equipment, net | 24,963 | 24,488 | 24,350 | |||
| Accrued interest receivable | 11,907 | 10,783 | 10,455 | |||
| Accounts receivable | 4,687 | 4,435 | 4,864 | |||
| Other receivables | 3,736 | 4,915 | 10,397 | |||
| Other real estate owned, net | 4,389 | 4,385 | 37,036 | |||
| Goodwill and other intangible assets, net | 31,473 | 31,524 | 31,684 | |||
| Deferred tax assets, net | 3,500 | 2,809 | 4,075 | |||
| Company-owned life insurance | 17,299 | 17,184 | 16,849 | |||
| Other assets | 37,283 | 35,728 | 34,425 | |||
| Total assets | $ | 3,240,424 | $ | 3,026,797 | $ | 2,911,948 |
| Liabilities | ||||||
| Deposits: | ||||||
| Noninterest-bearing | $ | 375,708 | $ | 361,656 | $ | 473,576 |
| Interest-bearing | 2,473,203 | 2,167,473 | 2,029,478 | |||
| Total deposits | 2,848,911 | 2,529,129 | 2,503,054 | |||
| Borrowings: | ||||||
| Federal Home Loan Bank and Federal Reserve borrowings | 50,867 | 163,416 | 62,373 | |||
| Subordinated notes | 44,724 | 44,673 | 52,508 | |||
| Accrued interest payable | 1,689 | 1,406 | 3,339 | |||
| Other liabilities | 32,738 | 29,326 | 41,843 | |||
| Total liabilities | 2,978,929 | 2,767,950 | 2,663,117 | |||
| Shareholders’ Equity | ||||||
| Total shareholders’ equity | 261,495 | 258,847 | 248,831 | |||
| Total liabilities and shareholders’ equity | $ | 3,240,424 | $ | 3,026,797 | $ | 2,911,948 |
First Western Financial, Inc.
Consolidated Financial Summary (unaudited)
| September 30, | June 30, | September 30, | ||||
|---|---|---|---|---|---|---|
| (dollars in thousands) | 2025 | 2025 | 2024 | |||
| Loan Portfolio | ||||||
| Cash, Securities, and Other | $ | 159,204 | $ | 161,725 | $ | 116,856 |
| Consumer and Other | 12,254 | 15,778 | 14,978 | |||
| Construction and Development | 230,600 | 255,870 | 301,542 | |||
| 1-4 Family Residential | 1,041,990 | 1,012,662 | 920,709 | |||
| Non-Owner Occupied CRE | 728,039 | 655,954 | 608,494 | |||
| Owner Occupied CRE | 191,239 | 196,692 | 176,165 | |||
| Commercial and Industrial | 225,919 | 239,278 | 239,660 | |||
| Total | 2,589,245 | 2,537,959 | 2,378,404 | |||
| Loans accounted for under the fair value option | 4,319 | 5,235 | 8,884 | |||
| Total loans held for investment | 2,593,564 | 2,543,194 | 2,387,288 | |||
| Deferred (fees) costs and unamortized premiums/(unaccreted discounts), net(1) | (2,718) | (3,098) | (4,089) | |||
| Loans (includes $4,208, $5,099, and $8,646 measured at fair value, respectively) | $ | 2,590,846 | $ | 2,540,096 | $ | 2,383,199 |
| Mortgage loans held for sale | 21,806 | 24,151 | 12,324 | |||
| Loans held for sale | — | — | 473 | |||
| Deposit Portfolio | ||||||
| Money market deposit accounts | $ | 1,988,336 | $ | 1,632,997 | $ | 1,350,619 |
| Time deposits | 349,533 | 397,006 | 533,452 | |||
| Interest checking accounts | 121,901 | 123,967 | 130,255 | |||
| Savings accounts | 13,433 | 13,503 | 15,152 | |||
| Total interest-bearing deposits | 2,473,203 | 2,167,473 | 2,029,478 | |||
| Noninterest-bearing accounts | 375,708 | 361,656 | 473,576 | |||
| Total deposits | $ | 2,848,911 | $ | 2,529,129 | $ | 2,503,054 |
____________________
(1) Includes fair value adjustments on loans held for investment accounted for under the fair value option.
First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
| As of or for the Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| September 30, | June 30, | September 30, | |||||||
| (dollars in thousands) | 2025 | 2025 | 2024 | ||||||
| Average Balance Sheets | |||||||||
| Assets | |||||||||
| Interest-earning assets: | |||||||||
| Interest-bearing deposits in other financial institutions | $ | 307,979 | $ | 121,950 | $ | 129,629 | |||
| Debt securities | 127,154 | 85,739 | 79,007 | ||||||
| Correspondent bank stock | 7,500 | 7,199 | 6,281 | ||||||
| Gross loans | 2,562,960 | 2,443,758 | 2,429,927 | ||||||
| Mortgage loans held for sale | 26,037 | 18,803 | 18,423 | ||||||
| Loans held at fair value | 4,809 | 5,690 | 9,691 | ||||||
| Total interest-earning assets | 3,036,439 | 2,683,139 | 2,672,958 | ||||||
| Noninterest-earning assets | 124,457 | 126,397 | 133,836 | ||||||
| Total assets | $ | 3,160,896 | $ | 2,809,536 | $ | 2,806,794 | |||
| Liabilities and Shareholders’ Equity | |||||||||
| Interest-bearing liabilities: | |||||||||
| Interest-bearing deposits | $ | 2,422,177 | $ | 2,047,570 | $ | 2,007,265 | |||
| FHLB and Federal Reserve borrowings | 51,065 | 75,362 | 62,589 | ||||||
| Subordinated notes | 44,690 | 44,639 | 52,470 | ||||||
| Total interest-bearing liabilities | 2,517,932 | 2,167,571 | 2,122,324 | ||||||
| Noninterest-bearing liabilities: | |||||||||
| Noninterest-bearing deposits | 349,839 | 352,391 | 395,755 | ||||||
| Other liabilities | 34,072 | 32,794 | 40,089 | ||||||
| Total noninterest-bearing liabilities | 383,911 | 385,185 | 435,844 | ||||||
| Total shareholders’ equity | 259,053 | 256,780 | 248,626 | ||||||
| Total liabilities and shareholders’ equity | $ | 3,160,896 | $ | 2,809,536 | $ | 2,806,794 | |||
| Yields/Cost of funds (annualized) | |||||||||
| Interest-bearing deposits in other financial institutions | 4.47 | % | 4.46 | % | 5.38 | % | |||
| Debt securities | 4.33 | 3.83 | 3.57 | ||||||
| Correspondent bank stock | 8.15 | 8.64 | 8.49 | ||||||
| Loans | 5.78 | 5.71 | 5.74 | ||||||
| Loan held at fair value | 5.28 | 5.99 | 5.79 | ||||||
| Mortgage loans held for sale | 5.59 | 6.61 | 5.87 | ||||||
| Total interest-earning assets | 5.59 | 5.61 | 5.67 | ||||||
| Interest-bearing deposits | 3.63 | 3.57 | 4.19 | ||||||
| Total deposits | 3.17 | 3.04 | 3.50 | ||||||
| FHLB and Federal Reserve borrowings | 3.98 | 4.14 | 4.03 | ||||||
| Subordinated notes | 5.60 | 5.66 | 5.60 | ||||||
| Total interest-bearing liabilities | 3.67 | 3.63 | 4.22 | ||||||
| Net interest margin | 2.54 | 2.67 | 2.32 | ||||||
| Net interest rate spread | 1.92 | 1.98 | 1.45 |
First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
| As of or for the Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| September 30, | June 30, | September 30, | |||||||
| (dollars in thousands, except share and per share amounts) | 2025 | 2025 | 2024 | ||||||
| Asset Quality | |||||||||
| Non-performing loans | $ | 18,293 | $ | 14,394 | $ | 15,031 | |||
| Non-performing assets | 22,682 | 18,779 | 52,067 | ||||||
| Net charge-offs | 259 | 657 | 9,319 | ||||||
| Non-performing loans to total loans | 0.71 | % | 0.57 | % | 0.63 | % | |||
| Non-performing assets to total assets | 0.70 | 0.62 | 1.79 | ||||||
| Allowance for credit losses to non-performing loans | 114.62 | 131.96 | 125.05 | ||||||
| Allowance for credit losses to total loans | 0.81 | 0.75 | 0.79 | ||||||
| Net charge-offs to average loans | 0.01 | 0.03 | 0.38 | ||||||
| Assets Under Management | $ | 7,433,029 | $ | 7,497,361 | $ | 7,465,757 | |||
| Market Data | |||||||||
| Book value per share at period end | $ | 26.92 | $ | 26.64 | $ | 25.75 | |||
| Tangible book value per common share(1) | $ | 23.68 | $ | 23.39 | $ | 22.47 | |||
| Weighted average outstanding shares, basic | 9,717,571 | 9,707,924 | 9,663,131 | ||||||
| Weighted average outstanding shares, diluted | 9,868,742 | 9,809,321 | 9,766,656 | ||||||
| Shares outstanding at period end | 9,714,711 | 9,717,922 | 9,664,101 | ||||||
| Consolidated Capital | |||||||||
| Tier 1 capital to risk-weighted assets | 9.80 | % | 9.96 | % | 10.06 | % | |||
| CET1 to risk-weighted assets | 9.80 | 9.96 | 10.06 | ||||||
| Total capital to risk-weighted assets | 12.50 | 12.67 | 13.19 | ||||||
| Tier 1 capital to average assets | 7.51 | 8.31 | 8.04 | ||||||
| Bank Capital | |||||||||
| Tier 1 capital to risk-weighted assets | 11.20 | % | 11.36 | % | 11.39 | % | |||
| CET1 to risk-weighted assets | 11.20 | 11.36 | 11.39 | ||||||
| Total capital to risk-weighted assets | 12.04 | 12.13 | 12.13 | ||||||
| Tier 1 capital to average assets | 8.59 | 9.49 | 9.11 |
____________________
(1) Represents a Non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
Reconciliations of Non-GAAP Financial Measures
| As of or for the Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| September 30, | June 30, | September 30, | |||||||
| (dollars in thousands, except share and per share amounts) | 2025 | 2025 | 2024 | ||||||
| Tangible Common | |||||||||
| Total shareholders' equity | $ | 261,495 | $ | 258,847 | $ | 248,831 | |||
| Less: goodwill and other intangibles, net | 31,473 | 31,524 | 31,684 | ||||||
| Tangible common equity | $ | 230,022 | $ | 227,323 | $ | 217,147 | |||
| Common shares outstanding, end of period | 9,714,711 | 9,717,922 | 9,664,101 | ||||||
| Tangible common book value per share | $ | 23.68 | $ | 23.39 | $ | 22.47 | |||
| Net income available to common shareholders | 3,186 | 2,503 | 2,134 | ||||||
| Return on tangible common equity (annualized) | 5.54 | % | 4.40 | % | 3.93 | % | |||
| Efficiency | |||||||||
| Non-interest expense | $ | 20,074 | $ | 19,099 | $ | 19,368 | |||
| Less: OREO expenses and write-downs | 8 | 53 | 35 | ||||||
| Adjusted non-interest expense | $ | 20,066 | $ | 19,046 | $ | 19,333 | |||
| Total income before non-interest expense | $ | 24,039 | $ | 22,416 | $ | 22,039 | |||
| Less: unrealized gain recognized on equity securities | 6 | 3 | 24 | ||||||
| Less: net gain (loss) on loans accounted for under the fair value option | 18 | 26 | (233) | ||||||
| Plus: provision for credit losses | 2,257 | 1,773 | 501 | ||||||
| Gross revenue | $ | 26,272 | $ | 24,160 | $ | 22,749 | |||
| Efficiency ratio | 76.38 | % | 78.83 | % | 84.98 | % |
13
myfw-20251023xex992a01
Third Quarter 2025 Conference Call
Safe Harbor 2 This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the current views of First Western Financial, Inc.’s (“First Western”) management with respect to, among other things, future events and First Western’s financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “position,” “project,” “future” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about First Western’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond First Western’s control. Accordingly, First Western cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although First Western believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. The following risks and uncertainties, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: the risk of geographic concentration in Colorado, Arizona, Wyoming, California, and Montana; the risk of changes in the economy affecting real estate values and liquidity; the risk in our ability to continue to originate residential real estate loans and sell such loans; risks specific to commercial loans and borrowers; the risk of claims and litigation pertaining to our fiduciary responsibilities; the risk of changes in interest rates could reduce our net interest margins and net interest income; increased credit risk, including as a result of deterioration in economic conditions, could require us to increase our allowance for credit losses and could have a material adverse effect on our results of operations and financial condition; the risk in our ability to maintain a strong core deposit base or other low-cost funding sources. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 7, 2025 and other documents we file with the SEC from time to time. All subsequent written and oral forward-looking statements attributable to First Western or persons acting on First Western’s behalf are expressly qualified in their entirety by this paragraph. Forward-looking statements speak only as of the date of this presentation. First Western undertakes no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise (except as required by law). This presentation contains certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of this presentation. Numbers in the presentation may not sum due to rounding. Our common stock is not a deposit or savings account. Our common stock is not insured by the Federal Deposit Insurance Corporation or any governmental agency or instrumentality. Except as otherwise indicated, this presentation speaks as of the date hereof. The delivery of this presentation shall not, under any circumstances, create any implication that there has been no change in the affairs of the Company after the date hereof.
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato(regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions Overview of 3Q25 3Q25 Earnings • Net income available to common shareholders of $3.2 million or $0.32 per diluted share • Diluted earnings per share increased 23% from the prior quarter, and 45% compared to 3Q24 • Pre-tax, pre-provision net income increased 22% from the prior quarter, and 96% compared to 3Q24 Continued Execution on Strategic Priorities • Continued priority on prudent risk management and conservative approach to new loan production with the contribution of new banking talent helping to drive solid loan production • Continued disciplined expense management • Success in deposit gathering efforts with increase in deposits of 12.6% in 3Q25 Positive Trends in Key Metrics • Net interest income increased for the fourth consecutive quarter • Growth in all major non-interest income areas from the prior quarter • Generated positive operating leverage in 3Q25 • Further increase in tangible book value per share 3
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato(regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 4 Net Income Available to Common Shareholders and Earnings per Share • Net income of $3.2 million, or $0.32 diluted earnings per share, in 3Q25 • Tangible book value per share(1) increased 1.2% to $23.68 Net Income Available to Common Shareholders Diluted Earnings per Share $2,134 $2,748 $4,185 $2,503 $3,186 3Q24 4Q24 1Q25 2Q25 3Q25 $— $1,000 $2,000 $3,000 $4,000 $5,000 $0.22 $0.28 $0.43 $0.26 $0.32 3Q24 4Q24 1Q25 2Q25 3Q25 $— $0.10 $0.20 $0.30 $0.40 $0.50 (1) See Non-GAAP reconciliation within the appendix.
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 5 Loan Portfolio • Total loans held for investment increased $50.4 million from prior quarter due to strong loan production • New loan production well diversified across markets and loan types • New loan production in 3Q25 of $145.7 million with a focus on relationship-based lending • Average rate on new loan production was 6.38% 3Q24 2Q25 3Q25 Cash, Securities and Other $ 116,856 $ 161,725 $ 159,204 Consumer and Other 14,978 15,778 12,254 Construction and Development 301,542 255,870 230,600 1-4 Family Residential 920,709 1,012,662 1,041,990 Non-Owner Occupied CRE 608,494 655,954 728,039 Owner Occupied CRE 176,165 196,692 191,239 Commercial and Industrial 239,660 239,278 225,919 Total $ 2,378,404 $ 2,537,959 $ 2,589,245 Loans accounted for at fair value(2) 8,884 5,235 4,319 Total Loans HFI $ 2,387,288 $ 2,543,194 $ 2,593,564 Mortgage loans held for sale 12,324 24,151 21,806 Loans held for sale 473 — — Total Loans $ 2,400,085 $ 2,567,345 $ 2,615,370 (1) Represents unpaid principal balance. Excludes deferred (fees) costs and unamortized premium/ (unaccreted discount). (2) Excludes fair value adjustments on loans accounted for under the fair value option. ($ in thousands, as of quarter end) Loan Portfolio Composition(1) Loan Portfolio Details Loan Production & Loan Payoffs Total Loans(1) $2,458 $2,421 $2,428 $2,468 $2,594 $2,567 $2,615 3Q24 4Q24 1Q25 2Q25 3Q25 2Q25 3Q25 $1,000 $1,500 $2,000 $2,500 $3,000 Average Period End $82.8 $93.5 $70.8 $166.9 $145.7$153.8 $97.1 $71.6 $122.6 $110.1 Production Loan Payoffs 3Q24 4Q24 1Q25 2Q25 3Q25 $0 $50 $100 $150 $200 ($ in millions) ($ in millions)
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 6 Total Deposits • Total deposits increased 12.6% from $2.53 billion in 2Q25 to $2.85 billion in 3Q25 • Interest-bearing deposits increased 13.8% from $2.17 billion in 2Q25 to $2.47 billion in 3Q25 primarily driven by growth in money market deposit accounts • Noninterest-bearing deposits increased 3.9% from $362 million in 2Q25 to $376 million in 3Q25 primarily due to operating account fluctuations 3Q24 2Q25 3Q25 Money market deposit accounts $ 1,350,619 $ 1,632,997 $ 1,988,336 Time deposits 533,452 397,006 349,533 Interest checking accounts 130,255 123,967 121,901 Savings accounts 15,152 13,503 13,433 Noninterest-bearing accounts 473,576 361,656 375,708 Total Deposits $ 2,503,054 $ 2,529,129 $ 2,848,911 Deposit Portfolio Composition Total Deposits $2,403 $2,499 $2,454 $2,400 $2,772 $2,529 $2,849 3Q24 4Q24 1Q25 2Q25 3Q25 2Q25 3Q25 $1,000 $1,500 $2,000 $2,500 $3,000 Average Period End ($ in millions)($ in thousands, as of quarter end)
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 7 Trust and Investment Management • Total assets under management decreased $64 million, or 0.9%, during the quarter to $7.43 billion • The decrease in AUM from 2Q25 was primarily attributable to net withdrawals in low fee product categories • Investment agency AUM increased $43 million, or 2.7%, during the quarter to $1.62 billion, primarily driven by improved market conditions ($ in millions, as of quarter end) Total Assets Under Management $7,466 $7,321 $7,177 $7,497 $7,433 Investment Agency Managed Trust 401(k)/Retirement Directed Trust Custody 3Q24 4Q24 1Q25 2Q25 3Q25 $— $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions (1) See Non-GAAP reconciliation within the appendix. Gross Revenue Gross Revenue(1) Gross Revenue(1) 8 $22.7 $23.8 $24.6 $24.2 $26.3 Wealth Management Mortgage 3Q24 4Q24 1Q25 2Q25 3Q25 $— $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 • Gross revenue(1) increased 8.7% from $24.2 million in 2Q25 to $26.3 million in 3Q25 • Net interest income increased 8.9% from prior quarter primarily driven by an increase in average interest- earnings assets, partially offset by a 13 basis point decrease in net interest margin • Non-interest income increased $0.5 million from prior quarter primarily driven by increases in Net gain on mortgage loans, Risk management and insurance fees, and Trust and investment management fees Non-interest Income $6,842 26.0% Net Interest Income $19,454 74.0% ($ in thousands) ($ in millions)
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 9 Net Interest Income and Net Interest Margin • Net interest income increased $1.6 million, or 8.9%, from $17.9 million in 2Q25 to $19.5 million in 3Q25, primarily driven by an increase in average interest-earnings assets, partially offset by a 13 basis point decrease in net interest margin • Net interest margin decreased 13 basis points during the quarter from 2.67% in 2Q25 to 2.54% in 3Q25, primarily due to an unfavorable mix shift in average interest-earning asset balances and an increase in cost of funds • The increase in cost of funds was driven by an unfavorable mix shift in average deposit balances Net Interest Income Net Interest Margin $15,568 $16,908 $17,453 $17,884 $19,454 3Q24 4Q24 1Q25 2Q25 3Q25 $— $5,000 $10,000 $15,000 $20,000 $25,000 2.32% 2.45% 2.61% 2.67% 2.54% 3Q24 4Q24 1Q25 2Q25 3Q25 —% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% ($ in thousands)
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 10 Non-Interest Income • Non-interest income increased $0.5 million to $6.8 million from prior quarter primarily driven by increases in Net gain on mortgage loans, Risk management and insurance fees, and Trust and investment management fees • Higher level of mortgage production contributed to an increase in Net gain on mortgage loans of $0.2 million in 3Q25 • Trust and investment management fees increased $0.1 million from the prior quarter primarily driven by an increase in investment agency AUM as a result of improving market conditions Total Non-Interest Income Trust and Investment Management Fees $6,972 $6,459 $7,345 $6,305 $6,842 Trust and Investment Management Fees Bank Fees Net Gain on Mortgage Loans Net gain on OREO Risk Management and Insurance Fees Other 3Q24 4Q24 1Q25 2Q25 3Q25 $(2,000) $— $2,000 $4,000 $6,000 $8,000 $10,000 $4,728 $4,660 $4,677 $4,512 $4,629 3Q24 4Q24 1Q25 2Q25 3Q25 $— $2,000 $4,000 $6,000 ($ in thousands) ($ in thousands)
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 11 Non-Interest Expense and Efficiency Ratio • Non-interest expense increased to $20.1 million from $19.1 million in the second quarter of 2025, primarily driven by an increase in Salaries and employee benefits, partially offset by a decrease in Occupancy and equipment • The increase in Salaries and employee benefits was primarily driven by an increase in bonus accruals as a result of the balance sheet growth and improved earnings during the quarter • The efficiency ratio improved from 78.83% as of 2Q25 and 84.98% as of 3Q24 to 76.38% as of 3Q25 (1) See Non-GAAP reconciliation within the appendix. Adjusted Non-Interest Expense(1) Operating Efficiency Ratio(1) (1) (1) (1) $19,333 $19,205 $19,441 $19,046 $20,066 3Q24 4Q24 1Q25 2Q25 3Q25 $— $5,000 $10,000 $15,000 $20,000 $25,000 84.98% 80.74% 79.16% 78.83% 76.38% 3Q24 4Q24 1Q25 2Q25 3Q25 —% 20.00% 40.00% 60.00% 80.00% 100.00% ($ in thousands)
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 12 Asset Quality • Increases in NPLs and NPAs due to the addition of one credit relationship to non-performing loans • Minimal amount of NCOs during the quarter • Provision expense of $2.3 million during 3Q25 increased ACL/Total Loans from 0.75% in 2Q25 to 0.81% in 3Q25 Non-Performing Assets/Total Assets Net Charge-Offs (Recoveries)/Average Loans 1.79% 1.68% 0.59% 0.62% 0.70% 3Q24 4Q24 1Q25 2Q25 3Q25 —% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% 2.20% 0.38% (0.01)% 0.02% 0.03% 0.01% 3Q24 4Q24 1Q25 2Q25 3Q25 (0.10)% —% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60%
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 13 Near Term Outlook • First Western's markets continue to perform well and the strength of our balance sheet and franchise provides opportunities to capitalize on market disruption and challenges being faced by competing banks to add new clients and banking talent • Loan pipeline remains strong and should continue to result in solid loan growth in the fourth quarter • Positive trends expected to continue ◦ Solid loan and deposit growth ◦ More robust business development activities in Wealth Management business ◦ Higher level of mortgage production resulting from addition of MLOs ◦ More operating leverage resulting from disciplined expense control • Positive trends in key areas expected to continue, which should result in steady improvement in financial performance and further value being created for shareholders
Appendix 14
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 15 Capital and Liquidity Overview Liquidity Funding Sources (as of 09/30/25) (1) See Non-GAAP reconciliation within the appendix. (2) Based on internal policy guidelines. Consolidated Capital Ratios (as of 09/30/25) Tangible Common Equity / TBV per Share(1) ($ in thousands) Liquidity Reserves: Total Available Cash $ 354,000 Unpledged Investment Securities 115,273 Borrowed Funds: Secured: FHLB Available 603,500 FRB Available 24,764 Other: Brokered Remaining Capacity 337,690 Unsecured: Credit Lines 29,000 Total Liquidity Funding Sources $ 1,464,227 Loan-to-Deposit Ratio 90.9 % 9.80% 9.80% 12.50% 7.51% Tier 1 Capital to Risk- Weighted Assets CET1 to Risk- Weighted Assets Total Capital to Risk- Weighted Assets Tier 1 Capital to Average Assets —% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% (2) (TCE $ in thousands) $130,704 $187,139 $208,760 $210,884 $213,731 $215,134 $217,147 $220,695 $224,979 $227,323 $230,022 $16.44 $19.87 $21.99 $22.01 $22.21 $22.27 $22.47 $22.83 $23.18 $23.39 $23.68 TCE TBV/Share 4Q20 4Q21 4Q22 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 $— $40,000 $80,000 $120,000 $160,000 $200,000 $240,000 $— $4 $8 $12 $16 $20 $24
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 16 Non-GAAP Reconciliation Consolidated Tangible Common Book Value Per Share (Dollars in thousands) September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 Total shareholders' equity $ 248,831 $ 252,322 $ 256,555 $ 258,847 $ 261,495 Goodwill and other intangibles, net 31,684 31,627 31,576 31,524 31,473 Tangible common equity $ 217,147 $ 220,695 $ 224,979 $ 227,323 $ 230,022 Common shares outstanding, end of period 9,664,101 9,667,142 9,704,320 9,717,922 9,714,711 Tangible common book value per share $ 22.47 $ 22.83 $ 23.18 $ 23.39 $ 23.68 Net income available to common shareholders $ 3,186 Return on tangible common equity (annualized) 5.54 % Consolidated Efficiency Ratio For the Three Months Ended, (Dollars in thousands) September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 Non-interest expense $ 19,368 $ 20,427 $ 19,361 $ 19,099 $ 20,074 Less: OREO expenses and write-downs 35 1,222 (80) 53 8 Adjusted non-interest expense $ 19,333 $ 19,205 $ 19,441 $ 19,046 $ 20,066 Net interest income $ 15,568 $ 16,908 $ 17,453 $ 17,884 $ 19,454 Non-interest income 6,972 6,459 7,345 6,305 6,842 Less: unrealized gain (loss) recognized on equity securities 24 (49) 11 3 6 Less: net (loss) gain on loans accounted for under the fair value option (233) (149) 6 26 18 Less: net (loss) gain on loans held for sale — (222) 222 — — Adjusted non-interest income $ 7,181 $ 6,879 $ 7,106 $ 6,276 $ 6,818 Adjusted total income $ 22,749 $ 23,787 $ 24,559 $ 24,160 $ 26,272 Efficiency ratio 84.98 % 80.74 % 79.16 % 78.83 % 76.38 %
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 17 Non-GAAP Reconciliation Wealth Management Gross Revenue For the Three Months Ended, (Dollars in thousands) September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 Total income before non-interest expense $ 20,296 $ 23,540 $ 23,468 $ 20,919 $ 22,278 Less: unrealized gain (loss) recognized on equity securities 24 (49) 11 3 6 Less: net (loss) gain on loans accounted for under the fair value option (233) (149) 6 26 18 Less: net (loss) gain on loans held for sale at fair value — (222) 222 — — Plus: provision for (release of) credit losses 501 (974) 80 1,773 2,257 Gross revenue $ 21,006 $ 22,986 $ 23,309 $ 22,663 $ 24,511 Mortgage Gross Revenue For the Three Months Ended, (Dollars in thousands) September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 Total income before non-interest expense $ 1,743 $ 801 $ 1,250 $ 1,497 $ 1,761 Gross revenue $ 1,743 $ 801 $ 1,250 $ 1,497 $ 1,761 Consolidated Gross Revenue For the Three Months Ended, (Dollars in thousands) September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 Total income before non-interest expense $ 22,039 $ 24,341 $ 24,718 $ 22,416 $ 24,039 Less: unrealized gain (loss) recognized on equity securities 24 (49) 11 3 6 Less: net (loss) gain on loans accounted for under the fair value option (233) (149) 6 26 18 Less: net (loss) gain on loans held for sale at fair value — (222) 222 — — Plus: provision for (release of) credit losses 501 (974) 80 1,773 2,257 Gross revenue $ 22,749 $ 23,787 $ 24,559 $ 24,160 $ 26,272
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 18 Non-GAAP Reconciliation Pre-tax, Pre-Provision Net Income For the Three Months Ended, (Dollars in thousands) September 30, 2024 June 30, 2025 September 30, 2025 Income before income taxes $ 2,671 $ 3,317 $ 3,965 Plus: provision for credit losses 501 1,773 2,257 Pre-tax, pre-provision net income $ 3,172 $ 5,090 $ 6,222 Allocation of the Allowance for Credit Losses (ACL) As of September 30, 2025 December 31, 2024 (Dollars in thousands) ACL Amount % of Loans % of ACL %(1) ACL Amount % of Loans % of ACL %(1) Commercial: Construction and Development $ 2,164 0.9 % 10.3 % 8.9 % $ 5,184 1.7 % 28.3 % 13.0 % Non-Owner Occupied CRE 3,939 0.5 18.8 28.0 4,340 0.7 23.7 25.3 Owner Occupied CRE 725 0.4 3.5 7.4 654 0.4 3.5 7.1 Commercial and Industrial 7,012 3.1 33.4 8.7 2,357 1.1 12.9 9.1 Total Commercial 13,840 1.0 66.0 53.0 12,535 1.0 68.4 54.5 Consumer: Cash, Securities and Other 1,137 0.7 5.4 6.1 410 0.3 2.2 5.0 Consumer and Other 186 1.5 0.9 0.5 185 1.1 1.0 0.7 1-4 Family Residential 5,804 0.6 27.7 40.4 5,200 0.5 28.4 39.8 Total Consumer 7,127 0.6 34.0 47.0 5,795 0.5 31.6 45.5 Total allowance for credit losses $ 20,967 0.8 % 100 % 100 % $ 18,330 0.8 % 100 % 100 % (1) Represents the percentage of loans to total loans in the respective category.