Financial Data and Key Metrics Changes - The company generated net income of $3.2 million or $0.32 per diluted share in Q3 2025, a 45% increase from the same quarter last year [6][10] - Tangible book value per share increased by 1.2% this quarter [6] - Gross revenue increased by 8.7% from the prior quarter and 15.5% year-over-year [9] - Net interest income increased by 8.9% from the prior quarter and 25% year-over-year [10] - Non-interest income increased by 8.5% from the prior quarter, primarily due to increases in all major fee categories [10] Business Line Data and Key Metrics Changes - Loans held for investment increased by $50 million from the end of the prior quarter, with new loan production of $146 million in Q3 [7] - Total deposits increased by $320 million from the end of the prior quarter, driven by new accounts and existing client balance growth [8] - Trust and investment management assets under management decreased by $64 million, primarily due to net withdrawals in low-fee product categories [8] Market Data and Key Metrics Changes - The average rate on new loan production was 6.38% in the quarter [7] - The spot rate on deposits at the end of the quarter was 3.04% [24] - The company achieved a 63% beta on money market accounts in Q3, which is expected to continue into Q4 [25] Company Strategy and Development Direction - The company focuses on generating new loans and deposits through superior service rather than competing on rates [4] - A conservative approach to new loan production is maintained, with disciplined underwriting and pricing criteria [4] - The company aims to leverage market disruptions from M&A activity to add new clients and banking talent [12][37] Management's Comments on Operating Environment and Future Outlook - Management sees healthy economic conditions in their markets and expects strong loan deposit pipelines to continue into Q4 [12] - There are no indications of meaningful deterioration in asset quality, with stable trends in the loan portfolio [12] - The company anticipates positive trends in net interest margin and fee income, contributing to improved financial performance [12][70] Other Important Information - The company has made significant investments in technology and team restructuring to enhance operational efficiency [68] - The efficiency ratio is trending down with operating leverage increasing, indicating improved profitability [70] Q&A Session Summary Question: Insights on deposit growth and mortgage department contributions - Management indicated that the deposit growth is expected to remain stable and provide a higher deposit base for future growth [16] Question: Details on the newly added non-performing asset (NPA) - The NPA was a C&I loan with performance issues, and a specific provision has been made for it [17] Question: Expectations for net interest margin (NIM) in Q4 - Management expects NIM expansion, potentially around five basis points, as liquidity is redeployed into the loan portfolio [20] Question: Spot rate on deposits and beta expectations - The spot rate was reported at 3.04%, with a beta of approximately 63% expected to continue [24][25] Question: Wealth management business and assets under management (AUM) - Management is focused on fee income rather than AUM, with positive growth noted in agency accounts [27] Question: Opportunities from M&A disruptions - Management sees ongoing market disruptions as beneficial for attracting new clients and talent [37][52]

Financial Data and Key Metrics Changes - The company generated net income of $3.2 million or $0.32 per diluted share in Q3 2025, a 45% increase from the same quarter last year [6] - Tangible book value per share increased by 1.2% this quarter [6] - Gross revenue increased by 8.7% from the prior quarter and 15.5% year-over-year [9] - Net interest income rose for the fourth consecutive quarter, increasing 8.9% from the prior quarter and 25% year-over-year [9][10] - Non-interest income increased by more than $500,000 or 8.5% from the prior quarter [10] Business Line Data and Key Metrics Changes - Loans held for investment increased by $50 million from the end of the prior quarter, with new loan production of $146 million in Q3 [7] - Total deposits increased by $320 million from the end of the prior quarter, driven by new accounts and existing client balance growth [8] - Trust and investment management assets under management decreased by $64 million, primarily due to net withdrawals from low-fee product categories [8] Market Data and Key Metrics Changes - The average rate on new loan production was 6.38% in the quarter [7] - The spot rate on deposits at the end of the quarter was 3.04% [24] - The company achieved a 63% beta on money market accounts in Q3, which is expected to continue into Q4 [25] Company Strategy and Development Direction - The company aims to grow deposits and loans by focusing on superior service rather than competing on pricing [4] - Management is optimistic about opportunities arising from market disruptions due to M&A activity in Colorado [12] - The company is focused on creating operating leverage by growing revenues faster than expenses [43] Management's Comments on Operating Environment and Future Outlook - Management sees healthy economic conditions in their markets and expects strong loan and deposit pipelines to continue into Q4 [12] - There are no indications of meaningful deterioration in asset quality, with stable trends in the loan portfolio [12] - The company anticipates NIM expansion as liquidity is deployed into the loan portfolio [19] Other Important Information - The company has made significant investments in technology and team restructuring to enhance operational efficiency [68] - The efficiency ratio is trending down with operating leverage increasing [70] - The company was named one of the KBW Bank Honor Roll members in 2025 for its performance [70] Q&A Session Summary Question: Insights on deposit growth and mortgage department contributions - Management indicated that the deposit growth is expected to remain stable and provide a higher base for future growth [16] Question: Details on the credit related to the downgraded loan - A specific provision was made for a C&I loan that was downgraded, and management expects it to be resolved over time [17] Question: Expectations for NIM in Q4 - Management anticipates a potential NIM expansion of about five basis points in Q4 [20] Question: Thoughts on the beta for additional Fed rate cuts - The beta has been declining, with a reasonable expectation of around 63% for the fourth quarter [25] Question: Update on wealth management and AUM strategy - The company is focused on fee income growth rather than AUM, with positive progress noted in agency accounts [27] Question: Opportunities from M&A disruptions - Management believes that ongoing market disruptions create opportunities for talent acquisition and client growth [37] Question: Plans for redeploying excess cash - The company expects to continue deploying liquidity into the loan portfolio, with strong loan demand trends anticipated [61]

Financial Data and Key Metrics Changes - The company generated net income of $3,200,000 or $0.32 per diluted share in Q3 2025, representing a 45% increase from the same quarter last year [5] - Tangible book value per share increased by 1.2% this quarter [5] - Gross revenue increased by 8.7% from the prior quarter and 15.5% year over year [11] - Net interest income increased for the fourth consecutive quarter, up 8.9% from the prior quarter and 25% year over year [12] - Non-interest income increased by more than $500,000 or 8.5% from the prior quarter [13] Business Line Data and Key Metrics Changes - Loans held for investment increased by $50,000,000 from the end of the prior quarter, with new loan production of $146,000,000 in Q3 [6][8] - Total deposits increased by $320,000,000 from the end of the prior quarter, driven by new accounts and existing client balance growth [9] - Trust and investment management assets under management decreased by $64,000,000, primarily due to net withdrawals [10] Market Data and Key Metrics Changes - The average rate on new loan production was 6.38% in the quarter [8] - The spot rate on deposits at the end of the quarter was 3.04% [30] - The company achieved a beta of approximately 63% on money market accounts in Q3 [31] Company Strategy and Development Direction - The company maintains a conservative approach to new loan production while focusing on service quality rather than competing on pricing [4] - The management is optimistic about continued growth opportunities in the Colorado market due to ongoing M&A activity [16] - The company is focused on creating operating leverage by growing revenues faster than expenses, aiming for improved efficiency ratios [50] Management's Comments on Operating Environment and Future Outlook - Management sees healthy economic conditions in their markets and expects solid balance sheet growth in Q4 [17] - There are no indications of meaningful deterioration in asset quality, with positive trends expected to continue [17] - The company plans to leverage investments made in technology and team restructuring to drive future growth [79] Other Important Information - The company was named one of 16 KBW Bank honor roll members in 2025 for its performance [86] - The management is optimistic about finishing the year strong and delivering shareholder value into 2026 [87] Q&A Session Summary Question: Insights on deposit growth and its sustainability - Management indicated that the deposits seen in Q3 are expected to remain and provide a higher deposit base for Q4 [21] Question: Details on the newly added non-performing asset (NPA) - The NPA was a commercial and industrial loan that had performance issues, with a specific provision set aside for it [22][23] Question: Expectations for net interest margin (NIM) in Q4 - Management anticipates NIM expansion due to liquidity on the balance sheet being redeployed into loans, estimating a potential increase of five basis points [24][26] Question: Update on wealth management and assets under management (AUM) - The company is focused on fee income growth rather than AUM, with recent progress noted in agency accounts [33] Question: Thoughts on future loan demand and liquidity deployment - Management expects loan demand trends to continue, with a focus on gradually redeploying excess liquidity into the loan portfolio over the next year [73][75]

Financial Data and Key Metrics Changes - The company generated net income of $3.2 million or $0.32 per diluted share in Q3 2025, a 45% increase from the same quarter last year [5] - Tangible book value per share increased by 1.2% this quarter [6] - Gross revenue increased by 8.7% from the prior quarter and 15.5% year over year [9] - Net interest income increased by 8.9% from the prior quarter and 25% year over year [10] - Non-interest income increased by 8.5% from the prior quarter, primarily due to increases in all major fee categories [11] Business Line Data and Key Metrics Changes - Loans held for investment increased by $50 million from the end of the prior quarter, with new loan production of $146 million in Q3 [6][7] - Total deposits increased by $320 million from the end of the prior quarter, driven by new accounts and existing client balances [8] - Trust and investment management assets under management decreased by $64 million, primarily due to net withdrawals in low-fee product categories [9] Market Data and Key Metrics Changes - The average rate on new loan production was 6.38% in the quarter [7] - The spot rate on deposits at the end of the quarter was 3.04% [22] - The company achieved a 63% beta on money market accounts in Q3, which is expected to remain reasonable for Q4 [23] Company Strategy and Development Direction - The company aims to leverage its investments in technology and product teams to drive shareholder value and improve efficiency [66][68] - The focus remains on maintaining a conservative approach to new loan production while expanding deposit relationships [4][5] - The company is optimistic about growth opportunities arising from market disruptions and M&A activity in Colorado [12][35] Management's Comments on Operating Environment and Future Outlook - Management sees healthy economic conditions in their markets and expects continued solid balance sheet growth in Q4 [12][13] - There are no indications of meaningful deterioration in asset quality, with positive trends expected to continue [13] - The company anticipates NIM expansion in Q4 due to liquidity deployment into the loan portfolio [18][19] Other Important Information - The company has been recognized as one of the KBW Bank Honor Roll members in 2025 for its performance [68] - The management team has made significant investments in technology and operational efficiency, which are expected to yield positive results [66][68] Q&A Session Summary Question: Insights on deposit growth and its sustainability - Management indicated that the deposits seen in Q3 are expected to remain and provide a higher deposit base for Q4 [16] Question: Details on the MPA and related provisions - A specific provision was made for a downgraded C&I loan, which management expects to resolve over time [17] Question: Expectations for NIM in Q4 - Management anticipates NIM expansion, potentially achieving around five basis points of improvement [19] Question: Thoughts on deposit pricing and beta - The beta on money market accounts was around 63% in Q3, with expectations for it to decline over time [23] Question: Update on wealth management and AUM - Management is focused on improving fee income and has seen progress in agency accounts despite a decrease in AUM [25] Question: Future growth and balance sheet strategy - Management views the recent deposit influx as part of an ongoing effort to align loan-to-deposit ratios and expects continued growth into 2026 [30][35] Question: Opportunities from M&A disruptions - Management believes that market disruptions create opportunities for talent acquisition and client growth [34][40]

Financial Performance - Net income available to common shareholders was $32 million, or $032 per diluted share in 3Q25[8, 14] - Pre-tax, pre-provision net income increased 22% from the prior quarter and 96% compared to 3Q24[8] - Gross revenue increased 87% from $242 million in 2Q25 to $263 million in 3Q25[38] - Net interest income increased $16 million, or 89%, from $179 million in 2Q25 to $195 million in 3Q25[43] Balance Sheet & Loan Portfolio - Total deposits increased 126% from $253 billion in 2Q25 to $285 billion in 3Q25[30] - Interest-bearing deposits increased 138% from $217 billion in 2Q25 to $247 billion in 3Q25[30] - New loan production in 3Q25 was $1457 million with an average rate of 638%[25] - Total loans held for investment increased $504 million from the prior quarter[25] Asset Quality & Capital - Tangible book value per share increased 12% to $2368[14] - The efficiency ratio improved from 7883% in 2Q25 and 8498% in 3Q24 to 7638% in 3Q25[55]

Core Insights - First Western (MYFW) reported quarterly earnings of $0.32 per share, missing the Zacks Consensus Estimate of $0.38 per share, but showing an increase from $0.22 per share a year ago, resulting in an earnings surprise of -15.79% [1] - The company posted revenues of $26.3 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 3.12%, and up from $22.54 million year-over-year [2] - First Western shares have increased approximately 17.9% year-to-date, outperforming the S&P 500's gain of 13.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.48 on revenues of $27.2 million, and for the current fiscal year, it is $1.54 on revenues of $101.5 million [7] - The estimate revisions trend for First Western was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Banks - Midwest industry, to which First Western belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net income available to common shareholders was $3.2 million, or $0.32 per diluted share, for Q3 2025, compared to $2.5 million, or $0.26 per diluted share, in Q2 2025[3] - Non-interest income for Q3 2025 was $6.8 million, an increase of 7.9% from $6.3 million in Q2 2025[12] - Net income available to common shareholders for Q3 2025 was $3,186,000, a 27.3% increase compared to $2,503,000 in Q2 2025[32] - Basic earnings per common share for Q3 2025 was $0.33, compared to $0.26 in Q2 2025[32] - Return on tangible common equity (annualized) improved to 5.54%, compared to 4.40% in the previous quarter, showing an increase of 25.8%[42] Deposits and Loans - Total deposits increased by $320 million, or 12.6%, from $2.53 billion in Q2 2025 to $2.85 billion in Q3 2025[6] - Total loans held for investment were $2.59 billion as of September 30, 2025, an increase of $50 million, or 2.0%, compared to June 30, 2025[16] - Total deposits reached $2,848,911 thousand, a significant increase from $2,529,129 thousand in the previous quarter, reflecting a growth of 12.7%[38] - Total loans held for investment increased to $2,593,564 thousand, up from $2,543,194 thousand in the previous quarter, representing a growth of 1.97%[36] Income and Expenses - Net interest income rose by $1.6 million, or 8.9%, from $17.9 million in Q2 2025 to $19.5 million in Q3 2025[6] - Non-interest expense increased by 5.2% from $19.1 million in Q2 2025 to $20.1 million in Q3 2025[14] - Total interest and dividend income for Q3 2025 was $42,774,000, an increase of 14.4% from $37,500,000 in Q2 2025[32] - Net interest income after provision for credit losses was $17,197,000, up 6.7% from $16,111,000 in Q2 2025[32] Asset Management - Assets Under Management (AUM) decreased by $64 million, or 0.9%, from $7.50 billion as of June 30, 2025, to $7.43 billion as of September 30, 2025[20] - Assets under management stood at $7,433,029 thousand, slightly down from $7,497,361 thousand in the previous quarter, a decrease of 0.86%[40] Credit Quality - Non-performing assets totaled $22.7 million, or 0.70% of total assets, as of September 30, 2025, compared to $18.8 million, or 0.62% of total assets, as of June 30, 2025[21] - Non-performing loans rose to $18,293 thousand, compared to $14,394 thousand in the prior quarter, indicating an increase of 26.3%[40] - The allowance for credit losses was $20,967,000, compared to $18,994,000 in Q2 2025[34] - The allowance for credit losses to total loans ratio improved to 0.81%, compared to 0.75% in the previous quarter, indicating a strengthening of credit quality[40] Efficiency and Capital - The efficiency ratio improved to 76.4% in Q3 2025, compared to 78.8% in Q2 2025[15] - The efficiency ratio improved to 76.38%, down from 78.83% in the previous quarter, indicating better operational efficiency[42] - The Tier 1 capital to risk-weighted assets ratio was 9.80%, down from 9.96% in the previous quarter, indicating a slight decrease in capital adequacy[40] Shareholder Equity - Total shareholders' equity as of September 30, 2025, was $261,495,000, slightly up from $258,847,000 in Q2 2025[34] - Book value per common share increased by 1.1% from $26.64 as of June 30, 2025, to $26.92 as of September 30, 2025[24] - Book value per share increased to $26.92, up from $26.64 in the previous quarter, reflecting a growth of 1.05%[40] Future Outlook - The company anticipates continued growth in its wealth management services and plans to expand its market presence in Colorado, Arizona, Wyoming, California, and Montana[29]

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]

Financial Performance - For the three months ended June 30, 2025, net income available to common shareholders was $2.5 million, a 127.3% increase from $1.1 million for the same period in 2024[195]. - For the six months ended June 30, 2025, net income available to common shareholders was $6.7 million, an 86.1% increase from $3.6 million for the same period in 2024[196]. - The company reported a $0.6 million decrease in non-interest income for the three months ended June 30, 2025, primarily due to a decrease in net gain on mortgage loans and trust and investment management fees[195]. - Non-interest income for the three months ended June 30, 2025, decreased by $0.7 million, or 9.6%, to $6.3 million compared to $6.97 million in 2024, primarily due to lower net gains on mortgage loans and trust fees[211]. - Non-interest income for the six months ended June 30, 2025, decreased by $0.6 million, or 4.2%, to $13.7 million, driven by declines in net gains on mortgage loans and bank fees[212]. Net Interest Income - Net interest income for the three months ended June 30, 2025, was $17.9 million, a 13.3% increase from the same period in 2024[197]. - Net interest income for the six months ended June 30, 2025, was $35.3 million, an increase of $3.5 million, or 11.0%, compared to the same period in 2024[201]. - The net interest margin increased by 32 basis points to 2.67% for the second quarter of 2025 from 2.35% in the second quarter of 2024[197]. - The net interest margin increased by 30 basis points to 2.64% for the six months ended June 30, 2025, compared to 2.34% for the same period in 2024[201]. - The net interest rate spread increased to 1.98 for the three months ended June 30, 2025, compared to 1.45 for the same period in 2024[205]. Assets and Liabilities - Total assets as of June 30, 2025, were $3.03 billion, with fiduciary and advisory services provided on $7.50 billion of assets under management (AUM)[183]. - Total assets increased by $107.8 million, or 3.7%, to $3.03 billion as of June 30, 2025, compared to December 31, 2024[233]. - Loans, net of allowance increased by $113.9 million, or 4.7%, to $2.52 billion as of June 30, 2025, driven by new loan production[234]. - Total loans outstanding at the end of the period was $2.535 billion as of June 30, 2025, compared to $2.446 billion as of June 30, 2024[267]. - Total deposits increased by $14.9 million, or 0.6%, to $2.53 billion as of June 30, 2025, compared to December 31, 2024[271]. Non-Interest Expense - Non-interest expense for the three months ended June 30, 2025, increased by $0.1 million, or 0.5%, to $19.1 million, driven by higher occupancy and equipment costs[220]. - Non-interest expense for the six months ended June 30, 2025, decreased by $0.2 million, or 0.6%, to $38.5 million, primarily due to reductions in professional services[221]. Credit Losses and Non-Performing Assets - Provision for credit losses for the three months ended June 30, 2025, was $1.8 million, a decrease from $2.3 million in the same period of 2024, reflecting proactive management of problem credits[209]. - The total non-performing assets decreased to $18.8 million as of June 30, 2025, compared to $48.7 million as of December 31, 2024, primarily due to the sale of OREO properties[264]. - The allowance for credit losses (ACL) on loans was $18.0 million as of June 30, 2025, unchanged from December 31, 2024, with a provision of $0.0 million for pooled loans during the same period[266]. - The amortized cost basis of non-performing loans was $14.4 million as of June 30, 2025, compared to $12.8 million as of December 31, 2024, indicating an increase in non-performing loans[265]. Regulatory Compliance and Capital - The company has adopted the Basel III regulatory capital framework, with capital ratios exceeding the current well-capitalized regulatory requirements as of June 30, 2025[193]. - The Company was in compliance with all applicable regulatory capital requirements as of June 30, 2025, and was classified as "well capitalized"[283]. - Total shareholders' equity increased by $6.5 million, or 2.6%, to $258.8 million as of June 30, 2025, driven by net income for the year[239]. Interest Rate Risk Management - Interest rate sensitivity analysis indicates that a 200 basis point increase in interest rates could lead to a 3.57% increase in net interest income and a 7.30% decrease in the fair value of equity as of June 30, 2025[292]. - The company actively monitors and manages interest rate risk exposure through various asset/liability strategies[289]. - The potential impact of interest rate changes on net economic value of equity and net interest income is analyzed by the Board of Directors[290]. - The Board of Directors reviews interest rate risk exposure at least quarterly, using sensitivity analysis to measure potential changes in net interest income and economic value of equity[291].