Fourth Quarter 2025 Conference Call Safe Harbor 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, ma ...

分组1 - First Western (MYFW) reported quarterly earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.47 per share, representing an earnings surprise of -27.66% [1] - The company posted revenues of $26.66 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 3.77%, compared to year-ago revenues of $23.37 million [2] - Over the last four quarters, First Western has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] 分组2 - The current consensus EPS estimate for the coming quarter is $0.46 on $27.4 million in revenues, and for the current fiscal year, it is $2.25 on $115.4 million in revenues [7] - The estimate revisions trend for First Western was favorable ahead of the earnings release, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] - The Zacks Industry Rank for Banks - Midwest is currently in the bottom 31% of over 250 Zacks industries, which may impact the stock's performance [8]

Core Insights - First Western Financial, Inc. reported a net income of $3.3 million for Q4 2025, an increase from $3.2 million in Q3 2025 and $2.7 million in Q4 2024, with diluted earnings per share rising to $0.34 from $0.32 in the previous quarter [2][6]. Financial Performance - Net interest income for Q4 2025 was $20.6 million, up 5.6% from $19.5 million in Q3 2025 and 21.9% from $16.9 million in Q4 2024 [11][12]. - The net interest margin increased by 17 basis points to 2.71% in Q4 2025, compared to 2.54% in Q3 2025, primarily due to a decrease in the cost of funds [9][10]. - Total income before non-interest expense was $25.7 million, a 7.1% increase from $24.0 million in Q3 2025, driven by higher net interest income [8]. Loan and Deposit Trends - Total loans held for investment rose to $2.65 billion, an increase of $59 million or 2.3% from Q3 2025, with growth in commercial real estate portfolios [17]. - Total deposits decreased by 3.5% to $2.75 billion from $2.85 billion in Q3 2025, primarily due to fluctuations in higher-cost money market accounts [18]. Expense Management - Non-interest expense increased to $21.3 million, a 6.0% rise from $20.1 million in Q3 2025, mainly due to a write-down of other real estate owned [14][15]. - The efficiency ratio improved to 74.9% in Q4 2025 from 76.4% in Q3 2025, indicating better cost management [15]. Asset Quality - Non-performing assets decreased to $19.6 million, or 0.62% of total assets, down from $22.7 million or 0.70% in Q3 2025, reflecting improved asset quality [23]. - Non-accrual loans totaled $16.6 million, a decrease from $18.3 million in Q3 2025, indicating a positive trend in credit quality [24]. Capital Position - As of December 31, 2025, the company maintained strong capital ratios, with Tier 1 capital to risk-weighted assets at 9.75% and the bank classified as "well capitalized" [26][46]. - Book value per common share increased by 1.4% to $27.30 from $26.92 in Q3 2025, and tangible book value per common share rose by 1.6% to $24.07 [26][27].

Financial Performance - Net income available to common shareholders was $3.3 million, or $0.34 per diluted share, for Q4 2025, compared to $3.2 million, or $0.32 per diluted share, in Q3 2025[3]. - Total income before non-interest expense was $25.7 million for Q4 2025, an increase of 7.1% from $24.0 million in Q3 2025[8]. - Net income available to common shareholders for the three months ended December 31, 2025, was $3,314,000, compared to $3,186,000 in the previous quarter[32]. - Basic earnings per common share for the three months ended December 31, 2025, was $0.34, up from $0.33 in the previous quarter[32]. Interest Income and Margin - Net interest income increased by $1.1 million, or 5.6%, from $19.5 million in Q3 2025 to $20.6 million in Q4 2025[6]. - Net interest margin increased by 17 basis points from 2.54% in Q3 2025 to 2.71% in Q4 2025[9]. - Net interest income after provision for credit losses was $19,662,000 for the three months ended December 31, 2025, up from $17,197,000 in the previous quarter[32]. - Net interest margin improved to 2.71% from 2.54% quarter-over-quarter, indicating enhanced profitability on interest-earning assets[40]. Loans and Assets - Total loans held for investment rose by $59 million, or 2.3%, from $2.59 billion in Q3 2025 to $2.65 billion in Q4 2025[6]. - Total loans held for investment increased to $2,652,086 thousand, up from $2,428,994 thousand year-over-year, representing a growth of 9.2%[36]. - Non-accrual loans decreased to $16,588 thousand from $18,293 thousand, a reduction of 9.3% quarter-over-quarter[40]. - Total assets as of December 31, 2025, were $3,154,981,000, a decrease from $3,240,424,000 as of September 30, 2025[34]. Deposits and Management - Total deposits decreased by 3.5% to $2.75 billion as of December 31, 2025, from $2.85 billion as of September 30, 2025[18]. - Total deposits decreased to $2,746,575,000 as of December 31, 2025, from $2,848,911,000 as of September 30, 2025[34]. - Assets Under Management (AUM) decreased by $155 million, or 2.1%, to $7.28 billion as of December 31, 2025, from $7.43 billion as of September 30, 2025[21]. - Assets Under Management (AUM) decreased to $7,278,241 thousand from $7,433,029 thousand, a decline of 2.1% quarter-over-quarter[40]. Expenses and Efficiency - Non-interest income decreased by 10.3% to $6.1 million in Q4 2025 from $6.8 million in Q3 2025[12]. - Non-interest expense increased by 6.0% to $21.3 million in Q4 2025 from $20.1 million in Q3 2025[14]. - Efficiency ratio improved to 74.88% from 76.38% quarter-over-quarter, showing better cost management[42]. Equity and Book Value - Tangible book value per common share increased 1.6% from $23.68 as of September 30, 2025, to $24.07 as of December 31, 2025, and increased 5.4% from $22.83 as of December 31, 2024[26]. - Tangible common equity increased to $234,138 thousand from $220,695 thousand year-over-year, reflecting a growth of 6.1%[42]. - Book value per share at period end increased to $27.30 from $26.10 year-over-year, reflecting a growth of 4.6%[40]. - Return on tangible common equity (annualized) rose to 5.66% from 4.98% year-over-year, indicating improved efficiency in generating profits[42]. Future Outlook - The company will host a conference call and webcast on January 23, 2026, to discuss the fourth quarter 2025 results[26]. - The company operates in Colorado, Arizona, Wyoming, California, and Montana, providing a fully integrated suite of wealth management services[27].

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Core Viewpoint - First Western (MYFW) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Ratings - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade for First Western reflects an improved earnings outlook, which is expected to positively impact its stock price [3][5]. Impact of Earnings Estimate Revisions - Changes in a company's future earnings potential, as shown by earnings estimate revisions, are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to significant price movements based on their buying or selling actions [4]. Performance Metrics - First Western is projected to earn $1.48 per share for the fiscal year ending December 2025, with no year-over-year change, but the Zacks Consensus Estimate has increased by 4.7% over the past three months [8]. - The Zacks Rank system has a strong track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [7]. Positioning and Market Potential - The upgrade to Zacks Rank 1 places First Western in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Viewpoint - First Western Financial, Inc. will release its financial results for the fourth quarter ended December 31, 2025, after market close on January 22, 2026 [1] Group 1: Financial Results Announcement - The financial results will be announced after the markets close on January 22, 2026 [1] - A conference call to discuss the financial results will be held on January 23, 2026, at 10:00 a.m. Mountain Time / 12:00 p.m. Eastern Time [2] - Analysts and investors will have the opportunity to participate in a question-and-answer session during the conference call [2] Group 2: Conference Call and Webcast Information - Participants must register for the conference call to receive the dial-in number and personalized PIN code [3] - The conference call will be accessible via a Telephone Access link and will also be webcast live on the investor relations website [4] - An archived version of the webcast will be available shortly after the live call [4] Group 3: Company Overview - First Western Financial, Inc. is a financial services holding company based in Denver, Colorado, with operations in multiple states including Colorado, Arizona, Wyoming, California, and Montana [5] - The company offers a comprehensive suite of wealth management services on a private trust bank platform, including deposit, loan, trust, wealth planning, and investment management products [5] - First Western's common stock is traded on the NASDAQ Global Select Market under the symbol "MYFW" [5]

Core Insights - First Western Financial, Inc. has appointed Alex McDougall as Regional President for its Arizona offices, bringing over 18 years of experience in private banking and wealth management [1][2] - McDougall previously held senior roles at JPMorgan and First Republic Bank, where he achieved significant growth in market share and deposits [1][2] - His appointment reflects First Western Trust's strategic investment in Arizona, emphasizing community engagement and support for local businesses [3][4] Company Strategy - First Western Trust aims to strengthen its presence in Arizona, a key growth market, by focusing on client service and community involvement [3][5] - The firm continues to support local entrepreneurs and nonprofit organizations through partnerships and philanthropy [4][5] - Leadership at First Western believes that exceptional client service and personal connection are critical differentiators in the banking industry [4] Leadership and Experience - Alex McDougall has received multiple industry accolades, including the President's Circle Award and Top Contributions to Banking Award, highlighting his ability to drive client satisfaction and business growth [2] - His leadership style aligns with First Western's philosophy of serving as trusted advisors, which is expected to enhance the firm's client-focused approach in Arizona [4][5] - McDougall holds a Business Administration degree and has served on various nonprofit boards, indicating a commitment to community service [5]

Financial Performance - For the three months ended September 30, 2025, net income available to common shareholders was $3.2 million, a 52.4% increase from $2.1 million for the same period in 2024[208]. - The company reported a $4.2 million, or 73.7% increase in net income available to common shareholders for the nine months ended September 30, 2025, totaling $9.9 million[210]. - For the nine months ended September 30, 2025, net interest income increased by $7.4 million, or 15.6%, to $54.8 million compared to the same period in 2024[215]. - Net interest income for the three months ended September 30, 2025, was $19.5 million, a 25.0% increase compared to the same period in 2024, driven by a $363.5 million increase in average interest-earning assets[211]. Assets and Liabilities - Total assets as of September 30, 2025, were $3.24 billion, with fiduciary and advisory services provided on $7.43 billion of assets under management (AUM)[198]. - Total assets increased by $321.4 million, or 11.0%, to $3.24 billion as of September 30, 2025, compared to $2.92 billion as of December 31, 2024[245]. - Loans, net of allowance increased by $162.6 million, or 6.8%, to $2.57 billion as of September 30, 2025, driven by new loan production[247]. - Total loans held for investment amounted to $2,590.8 million as of September 30, 2025, an increase from $2,425.6 million as of December 31, 2024[266]. Income and Expenses - Non-interest income decreased by $0.7 million for the nine months ended September 30, 2025, primarily due to lower net gains on mortgage loans and trust management fees[210]. - Non-interest income for Q3 2025 decreased by $0.1 million, or 1.9%, to $6.8 million compared to Q3 2024, primarily due to declines in risk management and insurance fees[224]. - Non-interest expense for Q3 2025 increased by $0.7 million, or 3.6%, to $20.1 million, primarily due to higher salaries and employee benefits[231]. - Non-interest expense for the nine months ended September 30, 2025 decreased by $0.5 million, or 0.8%, to $58.5 million compared to the same period in 2024[232]. Credit Quality - The provision for credit losses increased by $1.8 million for the three months ended September 30, 2025, reflecting loan growth and specific reserve provisions[208]. - Non-performing assets decreased to $22.5 million as of September 30, 2025, down from $48.7 million as of December 31, 2024, primarily due to the sale of two OREO properties[276]. - The allowance for credit losses (ACL) on pooled loans was $17.0 million as of September 30, 2025, reflecting a decrease from $18.0 million as of December 31, 2024[278]. - Non-accrual loans increased to $18.1 million as of September 30, 2025, compared to $12.8 million as of December 31, 2024, indicating a rise in credit risk[277]. Deposits and Borrowings - Total deposits increased by $334.7 million, or 13.3%, to $2.85 billion as of September 30, 2025, compared to December 31, 2024[283]. - Average deposits for the three months ended September 30, 2025 were $2.77 billion, an increase of $369.0 million, or 15.4%, compared to $2.40 billion for the same period in 2024[283]. - Borrowings decreased to $95.6 million as of September 30, 2025, from $109.6 million as of December 31, 2024[288]. - Interest-bearing deposits increased to 76.62% of total deposits in Q3 2025, compared to 71.51% in Q3 2024[292]. Market and Investment Performance - Assets Under Management (AUM) decreased by $64.0 million, or 0.9%, during the three months ended September 30, 2025, primarily due to net withdrawals[256]. - AUM increased by $112.0 million, or 1.5%, for the nine months ended September 30, 2025, primarily due to improved market conditions[256]. - The yield on total assets under management was 0.25% as of September 30, 2025, consistent with the previous period[256]. - The company experienced a net market change of $81 million for the nine months ended September 30, 2025, contributing to the increase in AUM[256]. Regulatory Compliance and Capital - The bank's capital ratios exceeded the current well-capitalized regulatory requirements established under Basel III as of September 30, 2025[207]. - The company maintained compliance with all applicable regulatory capital requirements as of September 30, 2025, and was classified as "well capitalized"[294]. - Future contractual obligations total $471.725 million, with $350.086 million due within one year[296]. Interest Rate Management - Average interest-bearing deposit rates decreased to 3.63% for the three months ended September 30, 2025, from 4.19% in the same period of 2024[212]. - A 200 basis point increase in interest rates is projected to increase net interest income by 14.54% as of September 30, 2025[301]. - Interest rate risk exposure is actively monitored and managed, with quarterly reviews by the Board of Directors[300].

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