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): July 24, 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 July 24, 2025, First Western Financial, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter ended June 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 second quarter ended June 30, 2025 on Friday, July 25, 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 second quarter ended June 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 July 24, 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: July 24, 2025 | By: /s/ Scott C. Wylie |
| Scott C. Wylie | |
| Chairman, Chief Executive Officer and President |
3
Document
Exhibit 99.1
First Western Reports Second Quarter 2025 Financial Results
Second Quarter 2025 Summary
•Total loans increased $115 million, or 4.7%, from $2.43 billion as of Q1 2025 to $2.54 billion as of Q2 2025
•Net interest margin increased 6 basis points from 2.61% in Q1 2025 to 2.67% in Q2 2025
•Net interest income increased $0.4 million from $17.5 million in Q1 2025 to $17.9 million in Q2 2025
•Non-interest expense decreased $0.3 million from $19.4 million in Q1 2025 to $19.1 million in Q2 2025
•Net income available to common shareholders of $2.5 million, or $0.26 per diluted share, in Q2 2025
Denver, Colo., July 24, 2025 – First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the second quarter ended June 30, 2025.
Net income available to common shareholders was $2.5 million, or $0.26 per diluted share, for the second quarter of 2025. This compares to net income of $4.2 million, or $0.43 per diluted share, for the first quarter of 2025, and net income of $1.1 million, or $0.11 per diluted share, for the second quarter of 2024.
Scott C. Wylie, CEO of First Western, commented, “We executed well in the second quarter and saw positive trends in many areas including loan and deposit growth, an expansion in our net interest margin, well managed expenses, and stable asset quality. We were able to redeploy the cash from the sale of our two largest OREO properties into loan production and securities purchases, which positively impacted our net interest margin. 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.
“Our loan and deposit pipelines remain healthy and we expect to see solid balance sheet growth over the second half of the year, along with continued expansion in our net interest margin while we continue to maintain tight expense control. We believe this will continue to result in solid financial performance for our shareholders as we move through the year,” said Mr. Wylie.
| For the Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| June 30, | March 31, | June 30, | |||||||
| (Dollars in thousands, except per share data) | 2025 | 2025 | 2024 | ||||||
| Earnings Summary | |||||||||
| Net interest income | $ | 17,884 | $ | 17,453 | $ | 15,778 | |||
| Provision for credit losses | 1,773 | 80 | 2,334 | ||||||
| Total non-interest income | 6,305 | 7,345 | 6,972 | ||||||
| Total non-interest expense | 19,099 | 19,361 | 19,001 | ||||||
| Income before income taxes | 3,317 | 5,357 | 1,415 | ||||||
| Income tax expense | 814 | 1,172 | 339 | ||||||
| Net income available to common shareholders | 2,503 | 4,185 | 1,076 | ||||||
| Basic earnings per common share | 0.26 | 0.43 | 0.11 | ||||||
| Diluted earnings per common share | 0.26 | 0.43 | 0.11 | ||||||
| Return on average assets (annualized) | 0.36 | % | 0.59 | % | 0.15 | % | |||
| Return on average shareholders' equity (annualized) | 3.90 | 6.63 | 1.73 | ||||||
| Return on tangible common equity (annualized)(1) | 4.40 | 7.44 | 2.00 | ||||||
| Net interest margin | 2.67 | 2.61 | 2.35 | ||||||
| Efficiency ratio(1) | 78.83 | 79.16 | 82.25 |
____________________
(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 Second Quarter 2025
Revenue
Total income before non-interest expense was $22.4 million for the second quarter of 2025, a decrease of 9.3% from $24.7 million for the first quarter of 2025. Gross revenue(1) was $24.2 million for the second quarter of 2025, a decrease of 1.6% from $24.6 million for the first quarter of 2025. Relative to the first quarter of 2025, the decrease in total income before non-interest expense was primarily driven by an increase in the Provision for credit losses and decreases in Net gain on loans held for sale and Net gain on other real estate owned, partially offset by an increase in Net interest income. Relative to the second quarter of 2024, total income before non-interest expense increased 9.8% from $20.4 million and Gross revenue increased 4.8% from $23.1 million. Relative to the second quarter of 2024, the increase in total income before non-interest expense was primarily driven by an increase in Net interest income and decrease in the Provision for credit losses, partially offset by a decrease in Net gain on mortgage loans.
(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 second quarter of 2025 increased 6 basis points to 2.67% from 2.61% reported in the first quarter of 2025, primarily due to a decrease in cost of deposits and increase in interest-earning assets yield. The decrease in cost of deposits was primarily due to lower rates on time deposits and the increase in interest-earning assets yield was primarily due to an improved mix in average interest-earning asset balances.
The yield on interest-earning assets increased 4 basis points to 5.61% from 5.57% reported in the first quarter of 2025 and the cost of interest-bearing liabilities decreased 2 basis points to 3.63% from 3.65% reported in the first quarter of 2025.
Relative to the second quarter of 2024, net interest margin increased 32 basis points from 2.35%, primarily due to a 42 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 second quarter of 2025 was $17.9 million, an increase of 2.3% from $17.5 million for the first quarter of 2025. The increase quarter over quarter was primarily driven by a 6 basis point increase in net interest margin, offset partially by a decline in average interest-earning assets. Relative to the second quarter of 2024, net interest income increased 13.3% from $15.8 million. The increase compared to the second quarter of 2024 was primarily driven by a 32 basis point increase in net interest margin, offset partially by a decline in average interest-earnings assets.
Non-interest Income
Non-interest income for the second quarter of 2025 was $6.3 million, a decrease of 13.7% from $7.3 million in the first quarter of 2025. The decrease was driven primarily by decreases in Net gain on other real estate owned, Net gain on loans held for sale, and Risk management and insurance fees, partially offset by an increase in Net gain on mortgage loans due to an increase in origination volume. The first quarter of 2025 included a Net gain on other real estate of $0.5 million due to the sale of our two largest OREO properties as well as a Net gain on loans held for sale of $0.2 million due to the reversal of a previous quarter's write-down on a non-performing loan.
Relative to the second quarter of 2024, non-interest income decreased $0.7 million, driven primarily by a decrease in Net gain on mortgage loans due to a decrease in origination volume.
Non-interest Expense
Non-interest expense for the second quarter of 2025 was $19.1 million, a decrease of 1.5% from $19.4 million in the first quarter of 2025. The decrease was primarily driven by a decrease in Salaries and employee benefits due to the seasonality of payroll taxes, partially offset by an increase in Professional services.
Relative to the second quarter of 2024, non-interest expense increased 0.5% from $19.0 million, driven primarily by an increase in Occupancy and equipment expenses, partially offset by a decrease in Salaries and employee benefits.
The Company’s efficiency ratio(1) was 78.8% in the second quarter of 2025, compared with 79.2% in the first quarter of 2025 and 82.3% in the second 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 second quarter of 2025, compared to $1.2 million for the first quarter of 2025, and $0.3 million for the second quarter of 2024.
Loans
Total loans held for investment were $2.54 billion as of June 30, 2025, an increase of $115 million or 4.7% compared to March 31, 2025. Changes in the quarter included net growth in the Cash, securities, and other and 1-4 family residential portfolios, partially offset by a net decrease in the Construction and development portfolio. Relative to the second quarter of 2024, total loans held for investment increased from $2.46 billion as of June 30, 2024, primarily driven by net growth in the 1-4 family residential and Non-owner occupied commercial real estate portfolios, partially offset by net decreases in the Construction and development and Commercial and industrial portfolios.
Deposits
Total deposits were $2.53 billion as of June 30, 2025, an increase of 0.4% from $2.52 billion as of March 31, 2025. Relative to the second quarter of 2024, total deposits increased from $2.41 billion as of June 30, 2024, driven primarily by an increase in Interest-bearing deposits.
Borrowings
Federal Home Loan Bank (“FHLB”) and Federal Reserve borrowings were a combined $163.4 million as of June 30, 2025, an increase of $111.8 million from $51.6 million as of March 31, 2025. The change when compared to March 31, 2025 was primarily driven by net draws on the Company's FHLB line of credit as a result of interest-earning asset growth during the quarter. Relative to the second quarter of 2024, borrowings decreased $28.1 million from $191.5 million as of June 30, 2024. The decrease in borrowings from June 30, 2024 was primarily driven by Bank Term Funding Program ("BTFP") payoffs and net pay downs on the Company's FHLB line of credit as a result of deposit growth.
Subordinated notes were $44.7 million as of June 30, 2025, compared to $44.6 million as of March 31, 2025. Subordinated notes decreased $7.8 million from $52.5 million as of June 30, 2024. Relative to the second 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 $7.50 billion as of June 30, 2025, an increase of $320 million, or 4.5%, from $7.18 billion as of March 31, 2025. The increase in AUM during the quarter was primarily attributable to improving market conditions. Compared to June 30, 2024, total AUM increased 6.9% from $7.01 billion.
Credit Quality
Non-performing assets totaled $18.8 million, or 0.62% of Total assets, as of June 30, 2025, compared to $17.1 million, or 0.59% of total assets, as of March 31, 2025. The increase in non-performing assets during the quarter was due to additions to non-performing loans. As of June 30, 2024, non-performing assets totaled $49.3 million, or 1.68% of total assets. Relative to the second 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 June 30, 2025 and March 31, 2025, a decrease of $7.0 million from $11.4 million as of June 30, 2024.
Non-performing loans totaled $14.4 million as of June 30, 2025, an increase of $1.6 million from $12.8 million as of March 31, 2025. The increase was due to the addition of one credit relationship that is in active workout. This relationship is secured by a residential real estate asset, business assets, and a personal guarantee. As of June 30, 2024, non-performing loans totaled $37.9 million. The decrease when compared to June 30, 2024 was driven by the migration of one loan relationship out of non-performing loans and into OREO, partially offset by additions to non-performing loans.
During the second quarter of 2025, the Company recorded provision expense of $1.8 million, compared to $0.1 million in the first quarter of 2025 and $2.3 million in the second quarter of 2024. The increase in provision expense recorded in the second quarter of 2025 compared to the first quarter of 2025 was primarily driven by loan growth and charge-offs.
Capital
As of June 30, 2025, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of June 30, 2025, the Bank was classified as “well capitalized,” as summarized in the following table:
| June 30, | ||
|---|---|---|
| 2025 | ||
| Consolidated Capital | ||
| Tier 1 capital to risk-weighted assets | 9.96 | % |
| Common Equity Tier 1 ("CET1") to risk-weighted assets | 9.96 | |
| Total capital to risk-weighted assets | 12.67 | |
| Tier 1 capital to average assets | 8.31 | |
| Bank Capital | ||
| Tier 1 capital to risk-weighted assets | 11.36 | % |
| CET1 to risk-weighted assets | 11.36 | |
| Total capital to risk-weighted assets | 12.13 | |
| Tier 1 capital to average assets | 9.49 |
Book value per common share increased 0.8% from $26.44 as of March 31, 2025 to $26.64 as of June 30, 2025. Book value per common share increased 4.3% from $25.55 as of June 30, 2024.
Tangible book value per common share(1) increased 0.9% from $23.18 as of March 31, 2025, to $23.39 as of June 30, 2025. Tangible book value per common share increased 5.0% from $22.27 as of June 30, 2024.
During the three months ended June 30, 2025, the Company repurchased 26,287 shares for $0.5 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, July 25, 2025. Telephone access: https://register-conf.media-server.com/register/BI4e9784b7b6ee4a528ae8f3affe52d2ee.
A slide presentation relating to the second 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 | ||||||
|---|---|---|---|---|---|---|
| June 30, | March 31, | June 30, | ||||
| (dollars in thousands, except per share amounts) | 2025 | 2025 | 2024 | |||
| Interest and dividend income: | ||||||
| Loans, including fees | $ | 35,085 | $ | 34,068 | $ | 35,275 |
| Loans accounted for under the fair value option | 85 | 111 | 168 | |||
| Investment securities | 819 | 681 | 651 | |||
| Interest-bearing deposits in other financial institutions | 1,356 | 2,221 | 1,855 | |||
| Dividends, restricted stock | 155 | 128 | 105 | |||
| Total interest and dividend income | 37,500 | 37,209 | 38,054 | |||
| Interest expense: | ||||||
| Deposits | 18,208 | 18,516 | 20,848 | |||
| Other borrowed funds | 1,408 | 1,240 | 1,428 | |||
| Total interest expense | 19,616 | 19,756 | 22,276 | |||
| Net interest income | 17,884 | 17,453 | 15,778 | |||
| Less: Provision for credit losses | 1,773 | 80 | 2,334 | |||
| Net interest income, after provision for credit losses | 16,111 | 17,373 | 13,444 | |||
| Non-interest income: | ||||||
| Trust and investment management fees | 4,512 | 4,677 | 4,875 | |||
| Net gain on mortgage loans | 1,187 | 1,067 | 1,820 | |||
| Net gain on loans held for sale | — | 222 | — | |||
| Bank fees | 293 | 422 | 327 | |||
| Risk management and insurance fees | 47 | 259 | 109 | |||
| Income on company-owned life insurance | 112 | 110 | 106 | |||
| Net gain (loss) on loans accounted for under the fair value option | 26 | 6 | (315) | |||
| Net gain on other real estate owned | — | 459 | — | |||
| Unrealized gain (loss) recognized on equity securities | 3 | 11 | (2) | |||
| Other | 125 | 112 | 52 | |||
| Total non-interest income | 6,305 | 7,345 | 6,972 | |||
| Total income before non-interest expense | 22,416 | 24,718 | 20,416 | |||
| Non-interest expense: | ||||||
| Salaries and employee benefits | 11,019 | 11,480 | 11,097 | |||
| Occupancy and equipment | 2,224 | 2,210 | 2,080 | |||
| Professional services | 1,855 | 1,704 | 1,826 | |||
| Technology and information systems | 1,030 | 1,078 | 1,042 | |||
| Data processing | 1,166 | 1,122 | 1,101 | |||
| Marketing | 267 | 216 | 243 | |||
| Amortization of other intangible assets | 52 | 51 | 56 | |||
| Other | 1,486 | 1,500 | 1,556 | |||
| Total non-interest expense | 19,099 | 19,361 | 19,001 | |||
| Income before income taxes | 3,317 | 5,357 | 1,415 | |||
| Income tax expense | 814 | 1,172 | 339 | |||
| Net income available to common shareholders | $ | 2,503 | $ | 4,185 | $ | 1,076 |
| Earnings per common share: | ||||||
| Basic | $ | 0.26 | $ | 0.43 | $ | 0.11 |
| Diluted | 0.26 | 0.43 | 0.11 |
First Western Financial, Inc.
Condensed Consolidated Balance Sheets (unaudited)
| June 30, | March 31, | June 30, | ||||
|---|---|---|---|---|---|---|
| (dollars in thousands) | 2025 | 2025 | 2024 | |||
| Assets | ||||||
| Cash and cash equivalents: | ||||||
| Cash and due from banks | $ | 12,353 | $ | 15,924 | $ | 6,374 |
| Interest-bearing deposits in other financial institutions | 219,961 | 255,658 | 239,425 | |||
| Total cash and cash equivalents | 232,314 | 271,582 | 245,799 | |||
| Held-to-maturity debt securities (fair value of $93,979, $67,479 and $71,067, respectively), net of allowance for credit losses of $71 | 99,825 | 73,775 | 78,927 | |||
| Correspondent bank stock, at cost | 11,254 | 5,968 | 10,804 | |||
| Mortgage loans held for sale, at fair value | 24,151 | 10,557 | 26,856 | |||
| Loans (includes $5,099, $6,112, and $10,190 measured at fair value, respectively) | 2,540,096 | 2,425,367 | 2,456,063 | |||
| Allowance for credit losses | (18,994) | (17,956) | (27,319) | |||
| Loans, net | 2,521,102 | 2,407,411 | 2,428,744 | |||
| Premises and equipment, net | 24,488 | 24,554 | 24,657 | |||
| Accrued interest receivable | 10,783 | 10,623 | 11,339 | |||
| Accounts receivable | 4,435 | 4,505 | 5,118 | |||
| Other receivables | 4,915 | 4,608 | 4,875 | |||
| Other real estate owned, net | 4,385 | 4,385 | 11,421 | |||
| Goodwill and other intangible assets, net | 31,524 | 31,576 | 31,741 | |||
| Deferred tax assets, net | 2,809 | 2,856 | 6,123 | |||
| Company-owned life insurance | 17,184 | 17,071 | 16,741 | |||
| Other assets | 37,628 | 36,829 | 34,410 | |||
| Total assets | $ | 3,026,797 | $ | 2,906,300 | $ | 2,937,555 |
| Liabilities | ||||||
| Deposits: | ||||||
| Noninterest-bearing | $ | 361,656 | $ | 409,696 | $ | 396,702 |
| Interest-bearing | 2,167,473 | 2,105,701 | 2,014,190 | |||
| Total deposits | 2,529,129 | 2,515,397 | 2,410,892 | |||
| Borrowings: | ||||||
| Federal Home Loan Bank and Federal Reserve borrowings | 163,416 | 51,612 | 191,505 | |||
| Subordinated notes | 44,673 | 44,621 | 52,451 | |||
| Accrued interest payable | 1,406 | 2,371 | 2,243 | |||
| Other liabilities | 29,326 | 35,744 | 33,589 | |||
| Total liabilities | 2,767,950 | 2,649,745 | 2,690,680 | |||
| Shareholders’ Equity | ||||||
| Total shareholders’ equity | 258,847 | 256,555 | 246,875 | |||
| Total liabilities and shareholders’ equity | $ | 3,026,797 | $ | 2,906,300 | $ | 2,937,555 |
First Western Financial, Inc.
Consolidated Financial Summary (unaudited)
| June 30, | March 31, | June 30, | ||||
|---|---|---|---|---|---|---|
| (dollars in thousands) | 2025 | 2025 | 2024 | |||
| Loan Portfolio | ||||||
| Cash, Securities, and Other | $ | 161,725 | $ | 101,078 | $ | 143,720 |
| Consumer and Other | 15,778 | 16,688 | 15,645 | |||
| Construction and Development | 255,870 | 291,133 | 309,146 | |||
| 1-4 Family Residential | 1,012,662 | 971,179 | 904,569 | |||
| Non-Owner Occupied CRE | 655,954 | 636,820 | 609,790 | |||
| Owner Occupied CRE | 196,692 | 182,417 | 189,353 | |||
| Commercial and Industrial | 239,278 | 223,197 | 277,973 | |||
| Total | 2,537,959 | 2,422,512 | 2,450,196 | |||
| Loans accounted for under the fair value option | 5,235 | 6,280 | 10,494 | |||
| Total loans held for investment | 2,543,194 | 2,428,792 | 2,460,690 | |||
| Deferred (fees) costs and unamortized premiums/(unaccreted discounts), net(1) | (3,098) | (3,425) | (4,627) | |||
| Loans (includes $5,099, $6,112, and $10,190 measured at fair value, respectively) | $ | 2,540,096 | $ | 2,425,367 | $ | 2,456,063 |
| Mortgage loans held for sale | 24,151 | 10,557 | 26,856 | |||
| Deposit Portfolio | ||||||
| Money market deposit accounts | $ | 1,632,997 | $ | 1,566,737 | $ | 1,342,753 |
| Time deposits | 397,006 | 379,533 | 519,597 | |||
| Interest checking accounts | 123,967 | 144,980 | 135,759 | |||
| Savings accounts | 13,503 | 14,451 | 16,081 | |||
| Total interest-bearing deposits | 2,167,473 | 2,105,701 | 2,014,190 | |||
| Noninterest-bearing accounts | 361,656 | 409,696 | 396,702 | |||
| Total deposits | $ | 2,529,129 | $ | 2,515,397 | $ | 2,410,892 |
____________________
(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 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| June 30, | March 31, | June 30, | |||||||
| (dollars in thousands) | 2025 | 2025 | 2024 | ||||||
| Average Balance Sheets | |||||||||
| Assets | |||||||||
| Interest-earning assets: | |||||||||
| Interest-bearing deposits in other financial institutions | $ | 121,950 | $ | 198,294 | $ | 141,600 | |||
| Debt securities | 85,739 | 75,592 | 75,461 | ||||||
| Correspondent bank stock | 7,199 | 5,806 | 4,801 | ||||||
| Gross loans | 2,443,758 | 2,407,482 | 2,443,937 | ||||||
| Mortgage loans held for sale | 18,803 | 13,593 | 20,254 | ||||||
| Loans held at fair value | 5,690 | 6,846 | 11,314 | ||||||
| Total interest-earning assets | 2,683,139 | 2,707,613 | 2,697,367 | ||||||
| Noninterest-earning assets | 126,397 | 145,479 | 119,247 | ||||||
| Total assets | $ | 2,809,536 | $ | 2,853,092 | $ | 2,816,614 | |||
| Liabilities and Shareholders’ Equity | |||||||||
| Interest-bearing liabilities: | |||||||||
| Interest-bearing deposits | $ | 2,047,570 | $ | 2,090,505 | $ | 2,001,691 | |||
| FHLB and Federal Reserve borrowings | 75,362 | 51,885 | 67,196 | ||||||
| Subordinated notes | 44,639 | 52,495 | 52,414 | ||||||
| Total interest-bearing liabilities | 2,167,571 | 2,194,885 | 2,121,301 | ||||||
| Noninterest-bearing liabilities: | |||||||||
| Noninterest-bearing deposits | 352,391 | 363,922 | 412,741 | ||||||
| Other liabilities | 32,794 | 41,656 | 34,051 | ||||||
| Total noninterest-bearing liabilities | 385,185 | 405,578 | 446,792 | ||||||
| Total shareholders’ equity | 256,780 | 252,629 | 248,521 | ||||||
| Total liabilities and shareholders’ equity | $ | 2,809,536 | $ | 2,853,092 | $ | 2,816,614 | |||
| Yields/Cost of funds (annualized) | |||||||||
| Interest-bearing deposits in other financial institutions | 4.46 | % | 4.54 | % | 5.27 | % | |||
| Debt securities | 3.83 | 3.65 | 3.47 | ||||||
| Correspondent bank stock | 8.64 | 8.94 | 8.80 | ||||||
| Loans | 5.71 | 5.71 | 5.75 | ||||||
| Loan held at fair value | 5.99 | 6.58 | 5.97 | ||||||
| Mortgage loans held for sale | 6.61 | 5.46 | 6.83 | ||||||
| Total interest-earning assets | 5.61 | 5.57 | 5.67 | ||||||
| Interest-bearing deposits | 3.57 | 3.59 | 4.19 | ||||||
| Total deposits | 3.04 | 3.06 | 3.47 | ||||||
| FHLB and Federal Reserve borrowings | 4.14 | 3.92 | 4.14 | ||||||
| Subordinated notes | 5.66 | 5.70 | 5.66 | ||||||
| Total interest-bearing liabilities | 3.63 | 3.65 | 4.22 | ||||||
| Net interest margin | 2.67 | 2.61 | 2.35 | ||||||
| Net interest rate spread | 1.98 | 1.92 | 1.45 |
First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
| As of or for the Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| June 30, | March 31, | June 30, | |||||||
| (dollars in thousands, except share and per share amounts) | 2025 | 2025 | 2024 | ||||||
| Asset Quality | |||||||||
| Non-performing loans | $ | 14,394 | $ | 12,758 | $ | 37,909 | |||
| Non-performing assets | 18,779 | 17,143 | 49,330 | ||||||
| Net charge-offs (recoveries) | 657 | 566 | (9) | ||||||
| Non-performing loans to total loans | 0.57 | % | 0.53 | % | 1.54 | % | |||
| Non-performing assets to total assets | 0.62 | 0.59 | 1.68 | ||||||
| Allowance for credit losses to non-performing loans | 131.96 | 140.74 | 72.06 | ||||||
| Allowance for credit losses to total loans | 0.75 | 0.74 | 1.11 | ||||||
| Net charge-offs to average loans | 0.03 | 0.02 | * | ||||||
| Assets Under Management | $ | 7,497,361 | $ | 7,176,624 | $ | 7,011,796 | |||
| Market Data | |||||||||
| Book value per share at period end | $ | 26.64 | $ | 26.44 | $ | 25.55 | |||
| Tangible book value per common share(1) | 23.39 | 23.18 | 22.27 | ||||||
| Weighted average outstanding shares, basic | 9,707,924 | 9,704,419 | 9,647,345 | ||||||
| Weighted average outstanding shares, diluted | 9,809,321 | 9,798,591 | 9,750,667 | ||||||
| Shares outstanding at period end | 9,717,922 | 9,704,320 | 9,660,549 | ||||||
| Consolidated Capital | |||||||||
| Tier 1 capital to risk-weighted assets | 9.96 | % | 10.35 | % | 9.92 | % | |||
| CET1 to risk-weighted assets | 9.96 | 10.35 | 9.92 | ||||||
| Total capital to risk-weighted assets | 12.67 | 13.15 | 13.44 | ||||||
| Tier 1 capital to average assets | 8.31 | 8.12 | 7.91 | ||||||
| Bank Capital | |||||||||
| Tier 1 capital to risk-weighted assets | 11.36 | % | 11.76 | % | 11.22 | % | |||
| CET1 to risk-weighted assets | 11.36 | 11.76 | 11.22 | ||||||
| Total capital to risk-weighted assets | 12.13 | 12.52 | 12.35 | ||||||
| Tier 1 capital to average assets | 9.49 | 9.24 | 8.95 |
____________________
(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 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| June 30, | March 31, | June 30, | |||||||
| (dollars in thousands, except share and per share amounts) | 2025 | 2025 | 2024 | ||||||
| Tangible Common | |||||||||
| Total shareholders' equity | $ | 258,847 | $ | 256,555 | $ | 246,875 | |||
| Less: goodwill and other intangibles, net | 31,524 | 31,576 | 31,741 | ||||||
| Tangible common equity | $ | 227,323 | $ | 224,979 | $ | 215,134 | |||
| Common shares outstanding, end of period | 9,717,922 | 9,704,320 | 9,660,549 | ||||||
| Tangible common book value per share | $ | 23.39 | $ | 23.18 | $ | 22.27 | |||
| Net income available to common shareholders | 2,503 | 4,185 | 1,076 | ||||||
| Return on tangible common equity (annualized) | 4.40 | % | 7.44 | % | 2.00 | % | |||
| Efficiency | |||||||||
| Non-interest expense | $ | 19,099 | $ | 19,361 | $ | 19,001 | |||
| Less: OREO expenses and write-downs | 53 | (80) | 29 | ||||||
| Adjusted non-interest expense | $ | 19,046 | $ | 19,441 | $ | 18,972 | |||
| Total income before non-interest expense | $ | 22,416 | $ | 24,718 | $ | 20,416 | |||
| Less: unrealized gain (loss) recognized on equity securities | 3 | 11 | (2) | ||||||
| Less: net gain (loss) on loans accounted for under the fair value option | 26 | 6 | (315) | ||||||
| Less: net gain on loans held for sale | — | 222 | — | ||||||
| Plus: provision for credit losses | 1,773 | 80 | 2,334 | ||||||
| Gross revenue | $ | 24,160 | $ | 24,559 | $ | 23,067 | |||
| Efficiency ratio | 78.83 | % | 79.16 | % | 82.25 | % |
13
myfw-20250724xex992a01
Second 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 2Q25 2Q25 Earnings • Net income available to common shareholders of $2.5 million or $0.26 per diluted share • Net interest income increased $0.4 million from $17.5 million in the prior quarter to $17.9 million • Positive trends in a number of key areas 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 • Generally stable asset quality Positive Trends in Key Metrics • Further increase in tangible book value per share • Improvement in net interest margin from prior quarter due to redeployment of cash generated from sale of OREO properties into new loan production and security purchases • Growth in mortgage banking revenue resulting from higher volumes due to contribution of new MLOs 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 $2.5 million, or $0.26 diluted earnings per share, in 2Q25 • Tangible book value per share(1) increased 0.9% to $23.39 • Quarter-over-quarter earnings were impacted by a $1.7 million pre-tax increase in provision and a one- time $0.5 million pre-tax gain on OREO in 1Q25 Net Income Available to Common Shareholders Diluted Earnings per Share $1,076 $2,134 $2,748 $4,185 $2,503 2Q24 3Q24 4Q24 1Q25 2Q25 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $0.11 $0.22 $0.28 $0.43 $0.26 2Q24 3Q24 4Q24 1Q25 2Q25 $— $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 $114.4 million from prior quarter due to strong loan production • New loan production well diversified across markets and loan types • New loan production in 2Q25 of $166.9 million with a focus on relationship-based lending • Average rate on new loan production was 6.35%. Excluding $52 million of production secured by trust and investment management assets, new production yield was 6.67%, which was higher than average rate of loans paying off 2Q24 1Q25 2Q25 Cash, Securities and Other $ 143,720 $ 101,078 $ 161,725 Consumer and Other 15,645 16,688 15,778 Construction and Development 309,146 291,133 255,870 1-4 Family Residential 904,569 971,179 1,012,662 Non-Owner Occupied CRE 609,790 636,820 655,954 Owner Occupied CRE 189,353 182,417 196,692 Commercial and Industrial 277,973 223,197 239,278 Total $ 2,450,196 $ 2,422,512 $ 2,537,959 Loans accounted for at fair value(2) 10,494 6,280 5,235 Total Loans HFI $ 2,460,690 $ 2,428,792 $ 2,543,194 Mortgage loans held for sale 26,856 10,557 24,151 Total Loans $ 2,487,546 $ 2,439,349 $ 2,567,345 (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) $2,476 $2,458 $2,421 $2,428 $2,468 $2,439 $2,567 2Q24 3Q24 4Q24 1Q25 2Q25 1Q25 2Q25 $1,000 $1,500 $2,000 $2,500 $3,000 Average Period End $49.5 $82.8 $93.5 $70.8 $166.9 $100.3 $153.8 $97.1 $71.6 $122.6 Production Loan Payoffs 2Q24 3Q24 4Q24 1Q25 2Q25 $0 $50 $100 $150 $200 ($ in millions) ($ in millions, 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 6 Total Deposits • Total deposits increased 0.4% from $2.52 billion in 1Q25 to $2.53 billion in 2Q25 • Noninterest-bearing deposits decreased 11.7% from $410 million in 1Q25 to $362 million in 2Q25 primarily due to seasonal outflow for tax payments and operating account fluctuations • Interest-bearing deposits increased 2.8% from $2.11 billion in 1Q25 to $2.17 billion in 2Q25 primarily driven by growth in money market and time deposit accounts 2Q24 1Q25 2Q25 Money market deposit accounts $ 1,342,753 $ 1,566,737 $ 1,632,997 Time deposits 519,597 379,533 397,006 Interest checking accounts 135,759 144,980 123,967 Savings accounts 16,081 14,451 13,503 Noninterest-bearing accounts 396,702 409,696 361,656 Total Deposits $ 2,410,892 $ 2,515,397 $ 2,529,129 Deposit Portfolio Composition Total Deposits $2,414 $2,403 $2,499 $2,454 $2,400 $2,515 $2,529 2Q24 3Q24 4Q24 1Q25 2Q25 1Q25 2Q25 $1,000 $1,500 $2,000 $2,500 $3,000 Average Period End ($ in millions, as of quarter end)($ 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 increased $320 million, or 4.5%, during the quarter to $7.50 billion • The increase in AUM from 1Q25 was primarily driven by improving market conditions • Compared to 2Q24, total AUM increased 6.9% from $7.01 billion ($ in millions, as of quarter end) Total Assets Under Management $7,012 $7,466 $7,321 $7,177 $7,497 Investment Agency Managed Trust 401(k)/Retirement Directed Trust Custody 2Q24 3Q24 4Q24 1Q25 2Q25 $— $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 $23.1 $22.7 $23.8 $24.6 $24.2 Wealth Management Mortgage 2Q24 3Q24 4Q24 1Q25 2Q25 $— $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 • Gross revenue(1) decreased 1.6% from prior quarter • Net interest income increased 2.3% from prior quarter primarily driven by net interest margin expansion • Non-interest income decreased $1.0 million from prior quarter driven primarily by one-time items positively impacting prior quarter, partially offset by an increase in Net gain on mortgage loans Non-interest Income $6,305 26.1% Net Interest Income $17,884 73.9% ($ 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 $0.4 million, or 2.3%, from $17.5 million in 1Q25 to $17.9 million, primarily driven by a 6 basis point increase in net interest margin • Net interest margin increased 6 basis points during the quarter from 2.61% in 1Q25 to 2.67% in 2Q25, primarily due to a decrease in cost of deposits and increase in interest-earning assets yield • The decrease in cost of deposits was primarily due to lower rates on time deposits and the increase in interest-earning assets yield was primarily due to an improved mix in average interest-earning asset balances • Both Net interest income and net interest margin increased for the third consecutive quarter Net Interest Income Net Interest Margin $15,778 $15,568 $16,908 $17,453 $17,884 2Q24 3Q24 4Q24 1Q25 2Q25 $— $5,000 $10,000 $15,000 $20,000 $25,000 2.35% 2.32% 2.45% 2.61% 2.67% 2Q24 3Q24 4Q24 1Q25 2Q25 —% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% ($ 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 decreased $1.0 million to $6.3 million from prior quarter driven by one-time items that positively impacted the prior quarter, partially offset by an increase in Net gain on mortgage loans • One-time items in 1Q25 included a gain on OREO of $0.5 million as well as a gain on LHFS of $0.2 million • Addition of MLOs led to higher level of mortgage production and contributed to an increase in Net gain on mortgage loans of $0.1 million in 2Q25 • Trust and investment management fee decline primarily driven by a mix-shift in AUM to lower fee product categories Total Non-Interest Income Trust and Investment Management Fees $6,972 $6,972 $6,459 $7,345 $6,305 Trust and Investment Management Fees Bank Fees Net Gain on Mortgage Loans Net gain on OREO Risk Management and Insurance Fees Other 2Q24 3Q24 4Q24 1Q25 2Q25 $(2,000) $— $2,000 $4,000 $6,000 $8,000 $10,000 $4,875 $4,728 $4,660 $4,677 $4,512 2Q24 3Q24 4Q24 1Q25 2Q25 $— $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 decreased to $19.1 million from $19.4 million in the first quarter of 2025, primarily driven by a decrease in Salaries and employee benefits expense • Non-interest expense increased $0.1 million, or 0.52% from $19.0 million in the second quarter of 2024 in spite of ongoing inflationary pressures • The efficiency ratio improved in the quarter from 79.16% as of 1Q25 to 78.83% as of 2Q25 • The efficiency ratio improved 3.42% from 82.25% as of 2Q24 (1) See Non-GAAP reconciliation within the appendix Adjusted Non-Interest Expense(1) Operating Efficiency Ratio(1) (1) (1) (1) $18,972 $19,333 $19,205 $19,441 $19,046 2Q24 3Q24 4Q24 1Q25 2Q25 $— $5,000 $10,000 $15,000 $20,000 $25,000 82.25% 84.98% 80.74% 79.16% 78.83% 2Q24 3Q24 4Q24 1Q25 2Q25 —% 20.00% 40.00% 60.00% 80.00% 100.00% ($ 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 • Slight increase in NPLs and NPAs due to the addition of one credit relationship that is an active workout and secured by a residential real estate asset, business assets, and a personal guarantee • Modest amount of NCOs during the quarter • Provision expense of $1.8 million during 2Q25 was primarily driven by loan production and NCOs • ACL/Total Loans increased from 0.74% in 1Q25 to 0.75% in 2Q25 Non-Performing Assets/Total Assets Net Charge-Offs (Recoveries)/Average Loans 1.68% 1.79% 1.68% 0.59% 0.62% 2Q24 3Q24 4Q24 1Q25 2Q25 —% 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% 2Q24 3Q24 4Q24 1Q25 2Q25 (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 and deposit pipelines remain strong and should continue to result in solid balance sheet growth in the second half of the year • Positive trends expected to continue ◦ Solid loan and deposit growth ◦ Continued expansion in net interest margin ◦ 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 06/30/25) (1) See Non-GAAP reconciliation within the appendix (2) Based on internal policy guidelines Consolidated Capital Ratios (as of 06/30/25) Tangible Common Equity / TBV per Share(1) ($ in thousands) Liquidity Reserves: Total Available Cash $ 230,397 Unpledged Investment Securities 65,214 Borrowed Funds: Secured: FHLB Available 370,958 FRB Available 26,009 Other: Brokered Remaining Capacity 220,708 Unsecured: Credit Lines 29,000 Total Liquidity Funding Sources $ 942,286 Loan-to-Deposit Ratio 100.4 % 9.96% 9.96% 12.67% 8.31% 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 $16.44 $19.87 $21.99 $22.01 $22.21 $22.27 $22.47 $22.83 $23.18 $23.39 TCE TBV/Share 4Q20 4Q21 4Q22 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 $— $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) June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 Total shareholders' equity $ 246,875 $ 248,831 $ 252,322 $ 256,555 $ 258,847 Goodwill and other intangibles, net 31,741 31,684 31,627 31,576 31,524 Tangible common equity $ 215,134 $ 217,147 $ 220,695 $ 224,979 $ 227,323 Common shares outstanding, end of period 9,660,549 9,664,101 9,667,142 9,704,320 9,717,922 Tangible common book value per share $ 22.27 $ 22.47 $ 22.83 $ 23.18 $ 23.39 Net income available to common shareholders $ 2,503 Return on tangible common equity (annualized) 4.40 % Consolidated Efficiency Ratio For the Three Months Ended, (Dollars in thousands) June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 Non-interest expense $ 19,001 $ 19,368 $ 20,427 $ 19,361 $ 19,099 Less: OREO expenses and write-downs 29 35 1,222 (80) 53 Adjusted non-interest expense $ 18,972 $ 19,333 $ 19,205 $ 19,441 $ 19,046 Net interest income $ 15,778 $ 15,568 $ 16,908 $ 17,453 $ 17,884 Non-interest income 6,972 6,972 6,459 7,345 6,305 Less: unrealized (loss) gain recognized on equity securities (2) 24 (49) 11 3 Less: net (loss) gain on loans accounted for under the fair value option (315) (233) (149) 6 26 Less: net (loss) gain on loans held for sale — — (222) 222 — Adjusted non-interest income $ 7,289 $ 7,181 $ 6,879 $ 7,106 $ 6,276 Adjusted total income $ 23,067 $ 22,749 $ 23,787 $ 24,559 $ 24,160 Efficiency ratio 82.25 % 84.98 % 80.74 % 79.16 % 78.83 %
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) June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 Total income before non-interest expense $ 18,242 $ 20,296 $ 23,540 $ 23,468 $ 20,919 Less: unrealized (loss) gain recognized on equity securities (2) 24 (49) 11 3 Less: net (loss) gain on loans accounted for under the fair value option (315) (233) (149) 6 26 Less: net (loss) gain on loans held for sale at fair value — — (222) 222 — Plus: provision for (release of) credit losses 2,334 501 (974) 80 1,773 Gross revenue $ 20,893 $ 21,006 $ 22,986 $ 23,309 $ 22,663 Mortgage Gross Revenue For the Three Months Ended, (Dollars in thousands) June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 Total income before non-interest expense $ 2,174 $ 1,743 $ 801 $ 1,250 $ 1,497 Gross revenue $ 2,174 $ 1,743 $ 801 $ 1,250 $ 1,497 Consolidated Gross Revenue For the Three Months Ended, (Dollars in thousands) June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 Total income before non-interest expense $ 20,416 $ 22,039 $ 24,341 $ 24,718 $ 22,416 Less: unrealized (loss) gain recognized on equity securities (2) 24 (49) 11 3 Less: net (loss) gain on loans accounted for under the fair value option (315) (233) (149) 6 26 Less: net (loss) gain on loans held for sale at fair value — — (222) 222 — Plus: provision for (release of) credit losses 2,334 501 (974) 80 1,773 Gross revenue $ 23,067 $ 22,749 $ 23,787 $ 24,559 $ 24,160
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) June 30, 2024 March 31, 2025 June 30, 2025 Income before income taxes $ 1,415 $ 5,357 $ 3,317 Plus: provision for credit losses 2,334 80 1,773 Pre-tax, pre-provision net income $ 3,749 $ 5,437 $ 5,090 Allocation of the Allowance for Credit Losses (ACL) As of June 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 $ 3,651 1.4 % 19.2 % 10.1 % $ 5,184 1.7 % 28.3 % 13.0 % Non-Owner Occupied CRE 4,323 0.7 22.7 25.8 4,340 0.7 23.7 25.3 Owner Occupied CRE 737 0.4 3.9 7.7 654 0.4 3.5 7.1 Commercial and Industrial 3,431 1.4 18.1 9.4 2,357 1.1 12.9 9.1 Total Commercial 12,142 0.9 63.9 53.0 12,535 1.0 68.4 54.5 Consumer: Cash, Securities and Other 1,150 0.7 6.1 6.4 410 0.3 2.2 5.0 Consumer and Other 158 1.0 0.8 0.6 185 1.1 1.0 0.7 1-4 Family Residential 5,544 0.5 29.2 40.0 5,200 0.5 28.4 39.8 Total Consumer 6,852 0.6 36.1 47.0 5,795 0.5 31.6 45.5 Total allowance for credit losses $ 18,994 0.7 % 100 % 100 % $ 18,330 0.8 % 100 % 100 % (1) Represents the percentage of loans to total loans in the respective category