Core Insights - First Western Financial, Inc. reported a net income of $3.2 million for Q3 2025, an increase from $2.5 million in Q2 2025 and $2.1 million in Q3 2024, reflecting improved profitability [3][7]. - The company experienced significant growth in total deposits, which rose by $320 million, or 12.6%, from $2.53 billion in Q2 2025 to $2.85 billion in Q3 2025 [7][22]. - Net interest income increased by $1.6 million, or 8.9%, from $17.9 million in Q2 2025 to $19.5 million in Q3 2025, driven by a rise in average interest-earning assets [7][13]. - Non-interest income also saw a rise of $0.5 million, or 7.9%, from $6.3 million in Q2 2025 to $6.8 million in Q3 2025, primarily due to increases in net gains on mortgage loans and fees [7][14]. - The efficiency ratio improved to 76.4% in Q3 2025 from 78.8% in Q2 2025, indicating better cost management [18]. Financial Performance - Total income before non-interest expense was $24.0 million for Q3 2025, up 7.1% from $22.4 million in Q2 2025, with gross revenue increasing by 8.7% to $26.3 million [9]. - The provision for credit losses was $2.3 million in Q3 2025, compared to $1.8 million in Q2 2025, reflecting a cautious approach to credit risk [29]. - The net interest margin decreased by 13 basis points to 2.54% from 2.67% in Q2 2025, attributed to a shift in the mix of interest-earning assets and an increase in the cost of funds [11][12]. Asset and Liability Management - Total loans held for investment increased by $50 million, or 2.0%, to $2.59 billion as of September 30, 2025, with growth in non-owner occupied commercial real estate and residential portfolios [21]. - Total assets reached $3.24 billion as of September 30, 2025, up from $3.03 billion in Q2 2025, indicating robust growth [42][44]. - The company’s borrowings from the Federal Home Loan Bank and Federal Reserve decreased to $50.9 million, down $112.5 million from $163.4 million in Q2 2025, reflecting strong deposit growth [23]. Credit Quality - Non-performing assets totaled $22.7 million, or 0.70% of total assets, as of September 30, 2025, an increase from $18.8 million, or 0.62%, in Q2 2025 [26]. - Non-performing loans increased to $18.3 million from $14.4 million in Q2 2025, primarily due to the addition of one credit relationship [28]. - The allowance for credit losses as a percentage of total loans increased from 0.75% to 0.81% during the quarter, reflecting a proactive stance on credit quality [29]. Capital Position - As of September 30, 2025, the company maintained a strong capital position, with Tier 1 capital to risk-weighted assets at 9.80% and total capital at 12.50% [30]. - Book value per common share increased by 1.1% from $26.64 in Q2 2025 to $26.92, and tangible book value per common share rose by 1.2% from $23.39 to $23.68 [30][31].

Core Viewpoint - First Western Financial, Inc. will release its financial results for the third quarter ended September 30, 2025, after market close on October 23, 2025 [1] Financial Results Announcement - The financial results will be discussed in a conference call scheduled for October 24, 2025, at 10:00 a.m. Mountain Time / 12:00 p.m. Eastern Time [2] - Analysts and investors are invited to participate in a question-and-answer session during the call [2] Conference Call Details - 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] 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]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________ FORM 10-Q _________________________________________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number 001-38595 ______________ ...

Financial Data and Key Metrics Changes - The company generated net income of $2,500,000 or $0.26 diluted share in Q2 2025, which was lower than the prior quarter due to one-time gains in Q1 and a higher provision recorded due to strong loan growth [6][7] - Pre-provision net revenue increased during the quarter, amounting to approximately $5,100,000, down slightly from Q1 but up about 36% year over year [8] - Tangible book value per share increased by about 1% this quarter [8] Business Line Data and Key Metrics Changes - Loans held for investment increased by $114,000,000 from the end of the prior quarter, with new loan production of $167,000,000 in Q2 [9][10] - Average rate on new loan production was 6.35%, or 6.67% excluding loans secured by trust and investment management assets [10] - Total deposits were slightly up from the end of the prior quarter, with a decline in non-interest bearing deposits offset by an increase in interest-bearing deposits [10][11] - Assets under management increased by $320,000,000 in Q2, driven largely by favorable market performance, with a nearly 7% increase over the past year [11][12] Market Data and Key Metrics Changes - The market remains competitive in terms of pricing on loans and deposits, but the company successfully generated new loans and deposits by offering superior service rather than competing on rates [5] - The company expects deposit balances to build back up over the second half of the year following typical seasonal outflows related to tax payments [11] Company Strategy and Development Direction - The company maintains a conservative approach to new loan production with disciplined underwriting and pricing criteria, while also focusing on expense control despite inflationary pressures [5][6] - There is a focus on enhancing trust and investment management services, with new leadership brought in to drive growth in this area [34][36] Management's Comments on Operating Environment and Future Outlook - Management noted healthy economic conditions in their markets, with strong loan and deposit pipelines expected to result in solid balance sheet growth for the second half of the year [16] - Positive trends in net interest margin, net interest income, and fee income are anticipated, with no indications of meaningful deterioration in asset quality [16][17] Other Important Information - The company successfully lowered deposit costs and redeployed cash from the sale of two OREO properties into new loan production and securities purchases, contributing to the expansion in net interest margin [6][13] - Non-interest income decreased by approximately $1,000,000 from the prior quarter due to one-time gains recorded in Q1, partially offset by an increase in gains on the sale of mortgage loans [13][14] Q&A Session Summary Question: Borrowings at the end of the quarter - Management confirmed that borrowings were overnight with a mid-four percent rate, and they plan to pay them off as deposits come in during Q3 [21] Question: Cost of interest-bearing deposits - The spot rate at June was 3.07%, with expectations for continued repricing down on the CD portfolio and a relatively flat NIM in Q3, expanding in Q4 [23] Question: Expense run rate - Management expects the expense run rate to remain in the range of $19.5 million to $20 million for the back half of the year [25] Question: NIM outlook sensitivity to rate cuts - Management indicated that a 25 basis point reduction would impact net interest income by about $1 million, with some sensitivity taken off the balance sheet [29] Question: Trust fees and profitability - Management emphasized the importance of building trust fees and noted that new leadership is focused on growth in this area, with expectations for positive results going forward [34][36] Question: Customer mindset and loan growth - Management observed a shift from caution to increased demand and larger pipelines, indicating a more confident client base [55]

Financial Performance - Net income available to common shareholders was $2.5 million, resulting in diluted earnings per share of $0.26 in 2Q25[12, 13] - Net interest income increased by $0.4 million, a 2.3% increase, from $17.5 million in 1Q25 to $17.9 million in 2Q25[10, 43] - Total assets under management increased by $320 million, a 4.5% increase, during the quarter to $7.50 billion[34] Loan Portfolio - Total loans held for investment increased by $114.4 million from the prior quarter due to strong loan production[24] - New loan production in 2Q25 reached $166.9 million, with a focus on relationship-based lending[24] - Total loans reached $2.57 billion[18] Deposits - Total deposits increased by 0.4% from $2.52 billion in 1Q25 to $2.53 billion in 2Q25[29] - Noninterest-bearing deposits decreased by 11.7% from $410 million in 1Q25 to $362 million in 2Q25, primarily due to seasonal outflows[29] Expenses and Efficiency - Non-interest expense decreased to $19.1 million from $19.4 million in 1Q25, driven by a decrease in salaries and employee benefits expense[53] - The efficiency ratio improved from 79.16% in 1Q25 to 78.83% in 2Q25[53] Asset Quality - ACL/Total Loans increased from 0.74% in 1Q25 to 0.75% in 2Q25[57]

Group 1 - First Western (MYFW) reported quarterly earnings of $0.26 per share, missing the Zacks Consensus Estimate of $0.39 per share, compared to earnings of $0.11 per share a year ago, representing an earnings surprise of -33.33% [1] - The company posted revenues of $24.19 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 3.63%, and this is an increase from year-ago revenues of $22.75 million [2] - Over the last four quarters, First Western has surpassed consensus EPS estimates just once, indicating a mixed performance in earnings expectations [2][6] Group 2 - First Western shares have increased approximately 26.7% since the beginning of the year, outperforming the S&P 500's gain of 8.1% [3] - The current consensus EPS estimate for the coming quarter is $0.45 on revenues of $26.5 million, and for the current fiscal year, it is $1.82 on revenues of $104.3 million [7] - The Zacks Industry Rank for Banks - Midwest is currently in the top 29% of over 250 Zacks industries, suggesting a favorable outlook for the industry [8]

Financial Performance - Net income available to common shareholders for Q2 2025 was $2.5 million, or $0.26 per diluted share, a decrease from $4.2 million, or $0.43 per diluted share in Q1 2025, but an increase from $1.1 million, or $0.11 per diluted share in Q2 2024 [2][6]. - Total income before non-interest expense was $22.4 million for Q2 2025, a decrease of 9.3% from $24.7 million in Q1 2025, but an increase of 9.8% from $20.4 million in Q2 2024 [8]. - Net interest income increased to $17.9 million in Q2 2025, up 2.3% from $17.5 million in Q1 2025 and up 13.3% from $15.8 million in Q2 2024 [12][6]. Loan and Deposit Growth - Total loans increased by $115 million, or 4.7%, from $2.43 billion in Q1 2025 to $2.54 billion in Q2 2025 [6][20]. - Total deposits were $2.53 billion as of June 30, 2025, an increase of 0.4% from $2.52 billion in Q1 2025 and an increase from $2.41 billion in Q2 2024 [21]. Net Interest Margin and Efficiency - Net interest margin increased by 6 basis points to 2.67% in Q2 2025 from 2.61% in Q1 2025, and increased by 32 basis points from 2.35% in Q2 2024 [10][11]. - The efficiency ratio improved to 78.83% in Q2 2025 from 79.16% in Q1 2025 and 82.25% in Q2 2024 [17]. 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 in Q1 2025, and a decrease from $49.3 million, or 1.68% of total assets in Q2 2024 [26]. - Non-performing loans increased to $14.4 million as of June 30, 2025, from $12.8 million in Q1 2025, but decreased from $37.9 million in Q2 2024 [27]. Capital Position - As of June 30, 2025, the Company exceeded minimum capital levels required by regulators, with a Tier 1 capital to risk-weighted assets ratio of 9.96% [29]. - Book value per common share increased by 0.8% from $26.44 in Q1 2025 to $26.64 in Q2 2025, and increased by 4.3% from $25.55 in Q2 2024 [30].

[Second Quarter 2025 Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Summary) This section provides an overview of First Western Financial, Inc.'s financial performance for the second quarter of 2025 [Financial Highlights](index=1&type=section&id=2.1%20Financial%20Highlights) First Western Financial, Inc. reported $2.5 million net income and $0.26 diluted EPS in Q2 2025, with positive trends in loan/deposit growth, NIM expansion, and asset quality - CEO Scott C. Wylie noted strong Q2 execution with positive trends in **loan and deposit growth**, **net interest margin expansion**, **expense management**, and **stable asset quality**[4](index=4&type=chunk) - The company redeployed cash from the sale of its two largest OREO properties into loan production and securities purchases, positively impacting **net interest margin**[4](index=4&type=chunk) - Healthy loan and deposit pipelines are expected to drive **robust balance sheet growth** and **continued net interest margin expansion** in H2, alongside **strict expense control**[5](index=5&type=chunk) Key Financial Metrics for Q2 2025 | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------------------- | :------ | :------ | :------ | | Net Income (Million USD) | 2.5 | 4.2 | 1.1 | | Diluted EPS (USD) | 0.26 | 0.43 | 0.11 | | Total Loan Growth (Million USD) | 115 | - | - | | Total Loans (Billion USD) | 2.54 | 2.43 | - | | Net Interest Margin (bps) | 2.67% | 2.61% | - | | Net Interest Income (Million USD) | 17.9 | 17.5 | - | | Non-Interest Expense (Million USD) | 19.1 | 19.4 | - | [Operating Results for the Second Quarter 2025](index=2&type=section&id=Operating%20Results%20for%20the%20Second%20Quarter%202025) This section details the company's financial performance in Q2 2025, covering net interest income, non-interest income and expense, and tax impacts [Earnings Summary](index=2&type=section&id=2.1%20Earnings%20Summary) Q2 2025 saw sequential growth in net interest income, but increased credit loss provisions led to a quarter-over-quarter decline in pre-tax and net income, despite significant year-over-year net income growth Q2 2025 Earnings Summary (Thousand USD) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--------------------------------- | :------ | :------ | :------ | | 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 Attributable to Common Shareholders | 2,503 | 4,185 | 1,076 | | Diluted EPS | 0.26 | 0.43 | 0.11 | | Return on Average Assets (Annualized) | 0.36% | 0.59% | 0.15% | | Return on Average Equity (Annualized) | 3.90% | 6.63% | 1.73% | | Return on Average Tangible Common Equity (Annualized) | 4.40% | 7.44% | 2.00% | | Net Interest Margin | 2.67% | 2.61% | 2.35% | | Efficiency Ratio | 78.83% | 79.16% | 82.25% | [Revenue](index=2&type=section&id=2.2%20Revenue) Total revenue before non-interest expense in Q2 2025 was $22.4 million, a 9.3% sequential decrease, primarily due to increased credit loss provisions and reduced net gains from loan sales and OREO, while growing 9.8% year-over-year - Total revenue before non-interest expense in Q2 2025 was **$22.4 million**, a **9.3% decrease** from **$24.7 million** in Q1 2025[8](index=8&type=chunk) - The sequential decline was primarily driven by increased **provision for credit losses**, reduced **net gains on loan sales**, and lower **OREO net gains**, partially offset by higher **net interest income**[8](index=8&type=chunk) - Compared to Q2 2024, total revenue before non-interest expense increased by **9.8%**, primarily due to higher **net interest income** and lower **provision for credit losses**[8](index=8&type=chunk) [Net Interest Margin](index=2&type=section&id=2.3%20Net%20Interest%20Margin) Net interest margin increased by 6 basis points quarter-over-quarter to 2.67% in Q2 2025, driven by lower deposit costs and higher earning asset yields, and grew 32 basis points year-over-year - Net interest margin increased by **6 basis points** quarter-over-quarter to **2.67%** in Q2 2025 (Q1 2025: 2.61%), primarily due to **lower deposit costs** and **higher earning asset yields**[9](index=9&type=chunk) - Earning asset yield increased by **4 basis points** quarter-over-quarter to **5.61%**, while the cost of interest-bearing liabilities decreased by **2 basis points** to **3.63%**[10](index=10&type=chunk) - Compared to Q2 2024, net interest margin increased by **32 basis points** (Q2 2024: 2.35%), primarily due to a **42 basis point decrease** in the total cost of funds in a lower interest rate environment[10](index=10&type=chunk) [Net Interest Income](index=3&type=section&id=2.4%20Net%20Interest%20Income) Net interest income in Q2 2025 was $17.9 million, a 2.3% sequential increase driven by higher net interest margin, partially offset by a decrease in average earning assets, and grew 13.3% year-over-year - Net interest income in Q2 2025 was **$17.9 million**, a **2.3% increase** from **$17.5 million** in Q1 2025[11](index=11&type=chunk) - The sequential increase was primarily driven by a **6 basis point increase** in net interest margin, partially offset by a decrease in **average earning assets**[11](index=11&type=chunk) - Compared to Q2 2024, net interest income increased by **13.3%** (Q2 2024: **$15.8 million**), primarily driven by a **32 basis point increase** in net interest margin[11](index=11&type=chunk) [Non-Interest Income](index=3&type=section&id=2.5%20Non-interest%20Income) Non-interest income in Q2 2025 was $6.3 million, a 13.7% sequential decrease due to reduced OREO net gains, loan sale net gains, and risk management/insurance fees, partially offset by increased mortgage net gains, and decreased by $0.7 million year-over-year - Non-interest income in Q2 2025 was **$6.3 million**, a **13.7% decrease** from **$7.3 million** in Q1 2025[12](index=12&type=chunk) - The decrease was primarily driven by reduced **OREO net gains**, **net gains on loan sales**, and **risk management and insurance fees**, partially offset by increased **mortgage net gains**[12](index=12&type=chunk) - Q1 2025 included **$0.5 million** in net gains from the sale of the two largest OREO properties and **$0.2 million** in net gains on loan sales from the reversal of non-performing loan charge-offs[12](index=12&type=chunk) - Compared to Q2 2024, non-interest income decreased by **$0.7 million**, primarily due to lower **mortgage net gains** resulting from reduced mortgage origination volume[13](index=13&type=chunk) [Non-Interest Expense](index=3&type=section&id=2.6%20Non-interest%20Expense) Non-interest expense in Q2 2025 was $19.1 million, a 1.5% sequential decrease due to seasonal payroll tax factors, partially offset by higher professional service fees, with improved efficiency ratios both sequentially and year-over-year - Non-interest expense in Q2 2025 was **$19.1 million**, a **1.5% decrease** from **$19.4 million** in Q1 2025[14](index=14&type=chunk) - The decrease was primarily driven by reduced **salaries and employee benefits** due to seasonal payroll tax factors, partially offset by increased **professional service fees**[14](index=14&type=chunk) - Compared to Q2 2024, non-interest expense increased by **0.5%**, primarily driven by higher **occupancy and equipment expenses**, partially offset by reduced **salaries and employee benefits**[15](index=15&type=chunk) - The company's efficiency ratio was **78.8%** in Q2 2025, down from **79.2%** in Q1 2025 and **82.3%** in Q2 2024[15](index=15&type=chunk) [Income Taxes](index=3&type=section&id=2.7%20Income%20Taxes) Income tax expense in Q2 2025 was $0.8 million, a sequential decrease but a significant year-over-year increase Income Tax Expense (Million USD) | Period | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :------ | :------ | :------ | | Income Tax Expense | 0.8 | 1.2 | 0.3 | [Balance Sheet and Credit Quality](index=3&type=section&id=Balance%20Sheet%20and%20Credit%20Quality) This section reviews the company's balance sheet composition, including loans, deposits, borrowings, and assets under management, alongside an assessment of credit quality and capital adequacy [Loans](index=3&type=section&id=3.1%20Loans) Total loans held for investment reached $2.54 billion as of June 30, 2025, a 4.7% sequential increase driven by net growth in cash, securities, and 1-4 family residential loans, and also increased year-over-year - Total loans held for investment were **$2.54 billion** as of June 30, 2025, an increase of **$115 million** or **4.7%** from March 31, 2025[17](index=17&type=chunk) - The quarter-over-quarter change included net growth in **cash, securities, and other** and **1-4 family residential loan portfolios**, partially offset by a net decrease in the **construction and development loan portfolio**[17](index=17&type=chunk) - Compared to Q2 2024, total loans held for investment increased from **$2.46 billion**, primarily driven by net growth in **1-4 family residential** and **non-owner-occupied commercial real estate loan portfolios**[17](index=17&type=chunk) [Deposits](index=4&type=section&id=3.2%20Deposits) Total deposits were $2.53 billion as of June 30, 2025, a 0.4% sequential increase, and also increased year-over-year, primarily driven by growth in interest-bearing 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[18](index=18&type=chunk) - Compared to Q2 2024, total deposits increased from **$2.41 billion**, primarily driven by an increase in **interest-bearing deposits**[18](index=18&type=chunk) [Borrowings](index=4&type=section&id=3.3%20Borrowings) FHLB and Federal Reserve borrowings totaled $163.4 million as of June 30, 2025, a significant sequential increase due to net FHLB credit line draws driven by earning asset growth, but decreased year-over-year due to BTFP repayment and FHLB credit line net paydowns - FHLB and Federal Reserve borrowings totaled **$163.4 million** as of June 30, 2025, an increase of **$111.8 million** from **$51.6 million** as of March 31, 2025[19](index=19&type=chunk) - The sequential change was primarily driven by **net FHLB credit line draws** resulting from earning asset growth during the quarter[19](index=19&type=chunk) - Compared to Q2 2024, borrowings decreased by **$28.1 million**, primarily due to **BTFP repayment** and **net FHLB credit line paydowns** resulting from deposit growth[19](index=19&type=chunk) [Subordinated Notes](index=4&type=section&id=3.4%20Subordinated%20Notes) Subordinated notes were $44.7 million as of June 30, 2025, relatively flat quarter-over-quarter, but decreased year-over-year due to the redemption of $8 million in Q1 2025 - Subordinated notes were **$44.7 million** as of June 30, 2025, compared to **$44.6 million** as of March 31, 2025[20](index=20&type=chunk) - Subordinated notes decreased by **$7.8 million** from **$52.5 million** as of June 30, 2024, primarily due to the **redemption of $8.0 million** in subordinated notes during Q1 2025[20](index=20&type=chunk) [Assets Under Management (AUM)](index=4&type=section&id=3.5%20Assets%20Under%20Management%20(AUM)) Assets Under Management (AUM) reached $7.50 billion as of June 30, 2025, a 4.5% sequential increase driven by improved market conditions, and grew 6.9% year-over-year - Assets Under Management (AUM) were **$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[21](index=21&type=chunk) - The increase in AUM during the quarter was primarily attributable to **improved market conditions**[21](index=21&type=chunk) - Compared to June 30, 2024, total AUM increased by **6.9%** (Q2 2024: **$7.01 billion**)[21](index=21&type=chunk) [Credit Quality](index=4&type=section&id=3.6%20Credit%20Quality) Non-performing assets and loans both increased sequentially in Q2 2025 due to higher non-performing loans, but significantly decreased year-over-year due to OREO property sales and non-performing loan migration - Total non-performing assets were **$18.8 million**, or **0.62%** of total assets, as of June 30, 2025, an increase from **$17.1 million** as of March 31, 2025[22](index=22&type=chunk) - The increase in non-performing assets during the quarter was due to an increase in **non-performing loans**[22](index=22&type=chunk) - Compared to Q2 2024, non-performing assets decreased, primarily driven by the **sale of two OREO properties**, partially offset by an increase in **non-performing loans**[22](index=22&type=chunk) - Total non-performing loans were **$14.4 million** as of June 30, 2025, an increase of **$1.6 million** from **$12.8 million** as of March 31, 2025, primarily due to the addition of one credit relationship that is actively being restructured[23](index=23&type=chunk) - The company recorded a **$1.8 million provision for credit losses** in Q2 2025, a significant increase from **$0.1 million** in Q1 2025, primarily driven by **loan growth and charge-offs**[24](index=24&type=chunk) [Capital](index=5&type=section&id=3.7%20Capital) First Western and its bank subsidiary exceeded minimum regulatory capital levels in Q2 2025, with the bank classified as 'well-capitalized,' while book value per common share and tangible book value per common share both increased, and the company repurchased 26,287 shares - As of June 30, 2025, First Western (consolidated) and First Western Trust Bank (the Bank) both exceeded their respective minimum regulatory capital levels, with the Bank classified as **'well-capitalized'**[25](index=25&type=chunk) Capital Ratios as of June 30, 2025 | Metric | Consolidated Capital | Bank Capital | | :--------------------------------- | :------- | :------- | | Tier 1 Capital to Risk-Weighted Assets Ratio | 9.96% | 11.36% | | Common Equity Tier 1 Capital to Risk-Weighted Assets Ratio | 9.96% | 11.36% | | Total Capital to Risk-Weighted Assets Ratio | 12.67% | 12.13% | | Tier 1 Capital to Average Assets Ratio | 8.31% | 9.49% | - Book value per common share increased by **0.8%** to **$26.64** as of June 30, 2025, from **$26.44** as of March 31, 2025[25](index=25&type=chunk) - Tangible book value per common share increased by **0.9%** to **$23.39** as of June 30, 2025, from **$23.18** as of March 31, 2025[26](index=26&type=chunk) - The company repurchased **26,287 shares** for **$0.5 million** during Q2 2025[26](index=26&type=chunk) [Company Information](index=5&type=section&id=Company%20Information) This section provides details on the upcoming conference call, an overview of First Western's business, and its market listing [Conference Call and Webcast](index=5&type=section&id=4.1%20Conference%20Call%20and%20Webcast) The company will host a conference call and webcast on July 25, 2025, to discuss Q2 2025 results, with presentation materials available beforehand - The company will host a conference call and webcast on **Friday, July 25, 2025, at 10:00 AM MT / 12:00 PM ET**[27](index=27&type=chunk) - A presentation related to the Q2 2025 results will be available prior to the scheduled conference call via the company's investor relations website[28](index=28&type=chunk) [About First Western](index=5&type=section&id=4.2%20About%20First%20Western) First Western is a Denver-based financial services holding company operating across multiple states, offering comprehensive wealth management services through its private trust bank platform - First Western is a financial services holding company headquartered in **Denver, Colorado**, with operations across **Colorado, Arizona, Wyoming, California, and Montana**[29](index=29&type=chunk) - The company and its subsidiaries provide fully integrated wealth management services through a private trust bank platform, including **deposit, loan, trust, wealth planning, and investment management products and services**[29](index=29&type=chunk) - First Western's common stock trades on the Nasdaq Global Select Market under the symbol **“MYFW”**[29](index=29&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) This press release includes non-GAAP financial measures such as 'tangible common equity' and 'efficiency ratio,' which the company believes provide a more comprehensive understanding of its financial condition and performance, serving as supplementary information to GAAP metrics - Non-GAAP financial measures included in this press release are **'tangible common equity,' 'tangible book value per common share,' 'return on average tangible common equity,' 'efficiency ratio,' and 'total revenue'**[30](index=30&type=chunk) - The company believes these non-GAAP financial measures provide management and investors with a more comprehensive understanding of its **financial condition and performance**[30](index=30&type=chunk) - These non-GAAP financial measures are supplementary and not a substitute for any analysis based on GAAP financial measures, and may not be comparable to similarly titled measures used by other companies[30](index=30&type=chunk) [Legal and Investor Information](index=7&type=section&id=Legal%20and%20Investor%20Information) This section outlines forward-looking statements, their inherent risks and uncertainties, and provides contact information for investor inquiries [Forward-Looking Statements](index=7&type=section&id=6.1%20Forward-Looking%20Statements) This press release contains forward-looking statements regarding future financial performance, conditions, business, and market trends, which are subject to various unpredictable risks and uncertainties that could cause actual results to differ materially - Statements in the press release regarding expectations and beliefs about future financial performance and condition, as well as business and market trends, constitute **'forward-looking statements'** under the Private Securities Litigation Reform Act of 1995[31](index=31&type=chunk) - Forward-looking statements are based on current information and assumptions but are subject to various risks and uncertainties, and **actual financial results may differ materially** from those expressed or implied[31](index=31&type=chunk) - Risks and uncertainties include, but are not limited to, **geographic concentration risk, changes in real estate values and liquidity, risks in loan origination and sale capabilities, commercial loan risks, fiduciary liability litigation risk, interest rate changes, and increased credit risk**[31](index=31&type=chunk) [Contacts](index=7&type=section&id=6.2%20Contacts) Investors can contact Tony Rossi at Financial Profiles, Inc. or via IR@myfw.com for further information - Contact: **Tony Rossi** of Financial Profiles, Inc. at **310-622-8221** or **MYFW@finprofiles.com** or **IR@myfw.com**[32](index=32&type=chunk) [Financial Statements](index=8&type=section&id=Financial%20Statements) This section presents the company's unaudited condensed consolidated financial statements, including statements of income, balance sheets, and a comprehensive financial summary [Condensed Consolidated Statements of Income](index=8&type=section&id=7.1%20Condensed%20Consolidated%20Statements%20of%20Income) This section provides First Western Financial, Inc.'s unaudited condensed consolidated statements of income, detailing interest and dividend income, interest expense, net interest income, provision for credit losses, non-interest income, non-interest expense, and net income and EPS for Q2 2025, Q1 2025, and Q2 2024 Condensed Consolidated Statements of Income (Thousand USD, except per share data) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--------------------------------------- | :------ | :------ | :------ | | Total Interest and Dividend Income | 37,500 | 37,209 | 38,054 | | 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 | | Total Non-Interest Income | 6,305 | 7,345 | 6,972 | | Total Revenue Before Non-Interest Expense | 22,416 | 24,718 | 20,416 | | 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 Attributable to Common Shareholders | 2,503 | 4,185 | 1,076 | | Basic Earnings Per Share | 0.26 | 0.43 | 0.11 | | Diluted Earnings Per Share | 0.26 | 0.43 | 0.11 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=7.2%20Condensed%20Consolidated%20Balance%20Sheets) This section presents First Western Financial, Inc.'s unaudited condensed consolidated balance sheets, detailing assets, liabilities, and shareholders' equity as of June 30, 2025, March 31, 2025, and June 30, 2024 Condensed Consolidated Balance Sheets (Thousand USD) | Metric | 2025年6月30日 | 2025年3月31日 | 2024年6月30日 | | :--------------------------------------- | :------------ | :------------ | :------------ | | **Assets** | | | | | Total Cash and Cash Equivalents | 232,314 | 271,582 | 245,799 | | Debt Securities Held to Maturity | 99,825 | 73,775 | 78,927 | | Loans, Net | 2,521,102 | 2,407,411 | 2,428,744 | | Other Real Estate Owned, Net | 4,385 | 4,385 | 11,421 | | Goodwill and Other Intangible Assets, Net | 31,524 | 31,576 | 31,741 | | Total Assets | 3,026,797 | 2,906,300 | 2,937,555 | | **Liabilities** | | | | | Total Deposits | 2,529,129 | 2,515,397 | 2,410,892 | | Federal Home Loan Bank and Federal Reserve Bank Borrowings | 163,416 | 51,612 | 191,505 | | Subordinated Notes | 44,673 | 44,621 | 52,451 | | 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 | [Consolidated Financial Summary](index=10&type=section&id=7.3%20Consolidated%20Financial%20Summary) This section provides First Western Financial, Inc.'s unaudited consolidated financial summary, including detailed information on loan and deposit portfolios, average balance sheets, yields/cost of funds, asset quality, market data, and capital ratios [Loan Portfolio](index=10&type=section&id=7.3.1%20Loan%20Portfolio) As of June 30, 2025, the company's total loan portfolio was $2.54 billion, with 1-4 family residential loans being the largest component and significant growth in cash, securities, and other loans Loan Portfolio (Thousand USD) | Loan Type | 2025年6月30日 | 2025年3月31日 | 2024年6月30日 | | :----------------------- | :------------ | :------------ | :------------ | | 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 Commercial Real Estate | 655,954 | 636,820 | 609,790 | | Owner-Occupied Commercial Real Estate | 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 | | Total Loans Held for Investment | 2,543,194 | 2,428,792 | 2,460,690 | [Deposit Portfolio](index=10&type=section&id=7.3.2%20Deposit%20Portfolio) As of June 30, 2025, total deposits were $2.53 billion, with money market deposit accounts as the largest component and a decrease in non-interest-bearing deposits Deposit Portfolio (Thousand USD) | Deposit Type | 2025年6月30日 | 2025年3月31日 | 2024年6月30日 | | :----------------------- | :------------ | :------------ | :------------ | | Money Market Deposit Accounts | 1,632,997 | 1,566,737 | 1,342,753 | | Certificates of Deposit | 397,006 | 379,533 | 519,597 | | Interest-Bearing 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 | | Non-Interest-Bearing Accounts | 361,656 | 409,696 | 396,702 | | Total Deposits | 2,529,129 | 2,515,397 | 2,410,892 | [Average Balance Sheets](index=11&type=section&id=7.3.3%20Average%20Balance%20Sheets) This section presents the average balance sheets for Q2 2025, Q1 2025, and Q2 2024, including the composition of average earning assets, non-earning assets, interest-bearing liabilities, and non-interest-bearing liabilities Average Balance Sheets (Thousand USD) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--------------------------------------- | :------ | :------ | :------ | | **Assets** | | | | | Total Earning Assets | 2,683,139 | 2,707,613 | 2,697,367 | | Non-Earning Assets | 126,397 | 145,479 | 119,247 | | Total Assets | 2,809,536 | 2,853,092 | 2,816,614 | | **Liabilities and Shareholders' Equity** | | | | | Total Interest-Bearing Liabilities | 2,167,571 | 2,194,885 | 2,121,301 | | Total Non-Interest-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](index=11&type=section&id=7.3.4%20Yields/Cost%20of%20Funds) This section details the annualized yields on earning assets and costs of funds for Q2 2025, Q1 2025, and Q2 2024, including net interest margin and net interest spread Yields/Cost of Funds (Annualized) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--------------------------------------- | :------ | :------ | :------ | | Yield on Interest-Bearing Deposits in Other Financial Institutions | 4.46% | 4.54% | 5.27% | | Debt Securities Yield | 3.83% | 3.65% | 3.47% | | Loan Yield | 5.71% | 5.71% | 5.75% | | Total Earning Assets Yield | 5.61% | 5.57% | 5.67% | | Cost of Interest-Bearing Deposits | 3.57% | 3.59% | 4.19% | | Total Deposit Cost | 3.04% | 3.06% | 3.47% | | FHLB and Federal Reserve Bank Borrowings Cost | 4.14% | 3.92% | 4.14% | | Subordinated Notes Cost | 5.66% | 5.70% | 5.66% | | Total Interest-Bearing Liabilities Cost | 3.63% | 3.65% | 4.22% | | Net Interest Margin | 2.67% | 2.61% | 2.35% | | Net Interest Spread | 1.98% | 1.92% | 1.45% | [Asset Quality](index=12&type=section&id=7.3.5%20Asset%20Quality) This section provides asset quality metrics for Q2 2025, Q1 2025, and Q2 2024, including non-performing loans, non-performing assets, net charge-offs, and related ratios Asset Quality Metrics | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--------------------------------------- | :------ | :------ | :------ | | Non-Performing Loans (Thousand USD) | 14,394 | 12,758 | 37,909 | | Non-Performing Assets (Thousand USD) | 18,779 | 17,143 | 49,330 | | Net Charge-offs (Recoveries) (Thousand USD) | 657 | 566 | (9) | | Non-Performing Loans to Total Loans Ratio | 0.57% | 0.53% | 1.54% | | Non-Performing Assets to Total Assets Ratio | 0.62% | 0.59% | 1.68% | | Allowance for Credit Losses to Non-Performing Loans Ratio | 131.96% | 140.74% | 72.06% | | Allowance for Credit Losses to Total Loans Ratio | 0.75% | 0.74% | 1.11% | | Net Charge-offs to Average Loans Ratio | 0.03% | 0.02% | * | [Market Data](index=12&type=section&id=7.3.6%20Market%20Data) This section provides market data for Q2 2025, Q1 2025, and Q2 2024, including assets under management, period-end book value per share, tangible book value per common share, and weighted average shares outstanding Market Data | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--------------------------------------- | :------ | :------ | :------ | | Assets Under Management (Thousand USD) | 7,497,361 | 7,176,624 | 7,011,796 | | Period-End Book Value Per Share (USD) | 26.64 | 26.44 | 25.55 | | Tangible Book Value Per Common Share (USD) | 23.39 | 23.18 | 22.27 | | Weighted Average Shares Outstanding, Basic | 9,707,924 | 9,704,419 | 9,647,345 | | Weighted Average Shares Outstanding, Diluted | 9,809,321 | 9,798,591 | 9,750,667 | | Period-End Shares Outstanding | 9,717,922 | 9,704,320 | 9,660,549 | [Capital Ratios](index=12&type=section&id=7.3.7%20Capital%20Ratios) This section provides consolidated and bank capital ratios for Q2 2025, Q1 2025, and Q2 2024, including Tier 1, Common Equity Tier 1, and Total Capital to Risk-Weighted Assets ratios, as well as Tier 1 Capital to Average Assets ratio Consolidated Capital Ratios | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--------------------------------------- | :------ | :------ | :------ | | Tier 1 Capital to Risk-Weighted Assets Ratio | 9.96% | 10.35% | 9.92% | | Common Equity Tier 1 Capital to Risk-Weighted Assets Ratio | 9.96% | 10.35% | 9.92% | | Total Capital to Risk-Weighted Assets Ratio | 12.67% | 13.15% | 13.44% | | Tier 1 Capital to Average Assets Ratio | 8.31% | 8.12% | 7.91% | Bank Capital Ratios | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--------------------------------------- | :------ | :------ | :------ | | Tier 1 Capital to Risk-Weighted Assets Ratio | 11.36% | 11.76% | 11.22% | | Common Equity Tier 1 Capital to Risk-Weighted Assets Ratio | 11.36% | 11.76% | 11.22% | | Total Capital to Risk-Weighted Assets Ratio | 12.13% | 12.52% | 12.35% | | Tier 1 Capital to Average Assets Ratio | 9.49% | 9.24% | 8.95% | [Reconciliations of Non-GAAP Financial Measures](index=13&type=section&id=Reconciliations%20of%20Non-GAAP%20Financial%20Measures) This section provides reconciliations for non-GAAP financial measures, including tangible common equity and the efficiency ratio, to their most directly comparable GAAP measures [Tangible Common Equity Reconciliation](index=13&type=section&id=8.1%20Tangible%20Common%20Equity%20Reconciliation) This section provides a reconciliation of tangible common equity and its per-share value, deducting goodwill and other intangible assets from total shareholders' equity for a clearer view of capital structure Tangible Common Equity Reconciliation (Thousand USD, except per share data) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--------------------------------------- | :------ | :------ | :------ | | Total Shareholders' Equity | 258,847 | 256,555 | 246,875 | | Less: Goodwill and Other Intangible Assets, Net | 31,524 | 31,576 | 31,741 | | Tangible Common Equity | 227,323 | 224,979 | 215,134 | | Period-End Common Shares Outstanding | 9,717,922 | 9,704,320 | 9,660,549 | | Tangible Book Value Per Common Share (USD) | 23.39 | 23.18 | 22.27 | | Net Income Attributable to Common Shareholders | 2,503 | 4,185 | 1,076 | | Return on Average Tangible Common Equity (Annualized) | 4.40% | 7.44% | 2.00% | [Efficiency Ratio Reconciliation](index=13&type=section&id=8.2%20Efficiency%20Ratio%20Reconciliation) This section provides a reconciliation of the efficiency ratio, adjusting non-interest expense and total revenue to more accurately reflect the company's operational efficiency Efficiency Ratio Reconciliation (Thousand USD) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--------------------------------------- | :------ | :------ | :------ | | Non-Interest Expense | 19,099 | 19,361 | 19,001 | | Less: OREO Expense and Impairment | 53 | (80) | 29 | | Adjusted Non-Interest Expense | 19,046 | 19,441 | 18,972 | | Total Revenue Before Non-Interest Expense | 22,416 | 24,718 | 20,416 | | Less: Realized (Unrealized) Gains (Losses) on Equity Securities | 3 | 11 | (2) | | Less: Realized (Unrealized) Gains (Losses) on Loans Measured at Fair Value | 26 | 6 | (315) | | Less: Net Gains on Loans Held for Sale | — | 222 | — | | Add: Provision for Credit Losses | 1,773 | 80 | 2,334 | | Total Revenue | 24,160 | 24,559 | 23,067 | | Efficiency Ratio | 78.83% | 79.16% | 82.25% |

Company Overview - First Western Financial, Inc. is a financial services holding company headquartered in Denver, Colorado, with operations in Colorado, Arizona, Wyoming, California, and Montana [5] - The company provides a fully integrated suite of wealth management services on a private trust bank platform, including deposit, loan, trust, wealth planning, and investment management products and services [5] - First Western's common stock is traded on the NASDAQ Global Select Market under the symbol "MYFW" [5] Upcoming Financial Results - First Western will release its financial results for the second quarter ended June 30, 2025, after the markets close on Thursday, July 24, 2025 [1] - A conference call will be held on Friday, July 25, 2025, at 10:00 a.m. Mountain Time/12:00 p.m. Eastern Time to discuss the financial results [2] - The conference call will be webcast live on the News & Events page of First Western's investor relations website, with an archived version available shortly after the live call [4]

Group 1 - First Western Financial, Inc. (MYFW) has recently experienced a "golden cross" event, indicating a potential bullish breakout as its 50-day simple moving average has crossed above its 200-day simple moving average [1][2] - The stock has shown a significant upward movement of 23.9% over the past four weeks, suggesting strong momentum [4] - MYFW is currently rated as a 1 (Strong Buy) on the Zacks Rank, indicating positive sentiment among analysts [4] Group 2 - The golden cross pattern consists of three stages: a downtrend followed by a crossover of the shorter moving average over the longer one, and finally an upward price movement [3] - Recent earnings expectations for MYFW have improved, with one upward revision and no downward changes in the last 60 days, further supporting the bullish outlook [4][5] - The combination of positive earnings estimate revisions and the technical breakout suggests that MYFW may continue to see gains in the near future [5]