[Report Information](index=1&type=section&id=Report%20Information) [Form 10-Q Filing Details](index=1&type=section&id=Form%2010-Q%20Filing%20Details) This report is First Western Financial, Inc.'s quarterly report for the period ended March 31, 2025, confirming the company has filed all required reports and is classified as an accelerated filer - Reporting period ended **March 31, 2025**[2](index=2&type=chunk) - Company has filed all required reports and complies with filing requirements[4](index=4&type=chunk) - Company is classified as an "accelerated filer"[5](index=5&type=chunk) Company Basic Information | Indicator | Detail | | :--- | :--- | | Registrant Name | FIRST WESTERN FINANCIAL, INC. | | Jurisdiction of Incorporation | Colorado | | Telephone Number | 303.531.8100 | | Trading Symbol | MYFW | | Registered Exchange | The Nasdaq Stock Market LLC | | Common Stock Outstanding (as of May 5, 2025) | 9,715,432 shares | [TABLE OF CONTENTS](index=2&type=section&id=TABLE%20OF%20CONTENTS) [Important Notice about Information in this Quarterly Report](index=3&type=section&id=Important%20Notice%20about%20Information%20in%20this%20Quarterly%20Report) [Important Notice](index=3&type=section&id=Important%20Notice) Information in this quarterly report is current only as of the report date, with "we," "company," and "First Western" referring to First Western Financial, Inc. and its consolidated subsidiaries, including First Western Trust Bank - "We," "company," and "First Western" refer to First Western Financial, Inc. and its consolidated subsidiaries, including First Western Trust Bank[9](index=9&type=chunk) - Report information is current only as of the report date and specified dates within[9](index=9&type=chunk) [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](index=4&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This report contains forward-looking statements regarding future events and financial performance, where actual results may differ materially due to various risks including geographic concentration, economic conditions, interest rate changes, credit risk, competition, regulatory changes, and technology risks, with no obligation to update - Forward-looking statements are based on current expectations, estimates, and projections, and actual results may differ materially[11](index=11&type=chunk) - Significant risk factors include geographic concentration (Colorado, Arizona, Wyoming, Montana, California), economic conditions, real estate values and liquidity, interest rate changes, adequacy of allowance for credit losses, liquidity risk, competition, acquisition risk, information security and cyberattacks, technological changes (including AI), regulatory changes, and legal proceedings[12](index=12&type=chunk)[14](index=14&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statements[13](index=13&type=chunk) [PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the company's unaudited condensed consolidated financial statements, including balance sheets, income statements, comprehensive income statements, changes in shareholders' equity, and cash flow statements, along with detailed notes, providing financial position and operating results as of March 31, 2025 [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets Key Data (Thousands of US Dollars) | Indicator | March 31, 2025 | December 31, 2024 | Change Amount | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $271,582 | $236,041 | $35,541 | 15.1% | | Debt securities held-to-maturity, net | $73,775 | $75,724 | $(1,949) | (2.6)% | | Loans, net | $2,407,411 | $2,407,235 | $176 | 0.0% | | Mortgage loans held for sale, net | $10,557 | $25,455 | $(14,898) | (58.5)% | | Other real estate owned, net | $4,385 | $35,929 | $(31,544) | (87.8)% | | Goodwill and other intangible assets, net | $31,576 | $31,627 | $(51) | (0.2)% | | **Total assets** | **$2,906,300** | **$2,919,037** | **$(12,737)** | **(0.4)%** | | Total deposits | $2,515,397 | $2,514,209 | $1,188 | 0.0% | | Total borrowings | $96,233 | $109,603 | $(13,370) | (12.2)% | | **Total liabilities** | **$2,649,745** | **$2,666,715** | **$(16,970)** | **(0.6)%** | | **Total shareholders' equity** | **$256,555** | **$252,322** | **$4,233** | **1.7%** | [Condensed Consolidated Statements of Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Condensed Consolidated Statements of Income Key Data (Thousands of US Dollars, except per share amounts) | Indicator | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change Amount | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Total interest and dividend income | $37,209 | $38,398 | $(1,189) | (3.1)% | | Total interest expense | $19,756 | $22,328 | $(2,572) | (11.5)% | | Net interest income | $17,453 | $16,070 | $1,383 | 8.6% | | Less: Provision for credit losses | $80 | $72 | $8 | 11.1% | | Net interest income after provision for credit losses | $17,373 | $15,998 | $1,375 | 8.6% | | Total non-interest income | $7,345 | $7,277 | $68 | 0.9% | | Total non-interest expense | $19,361 | $19,696 | $(335) | (1.7)% | | Income before income taxes | $5,357 | $3,579 | $1,778 | 49.7% | | Income tax expense | $1,172 | $1,064 | $108 | 10.2% | | **Net income attributable to common shareholders** | **$4,185** | **$2,515** | **$1,670** | **66.4%** | | Basic earnings per common share | $0.43 | $0.26 | $0.17 | 65.4% | | Diluted earnings per common share | $0.43 | $0.26 | $0.17 | 65.4% | [Condensed Consolidated Statements of Comprehensive Income](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive Income Key Data (Thousands of US Dollars) | Indicator | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change Amount | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Net income | $4,185 | $2,515 | $1,670 | 66.4% | | Total other comprehensive (loss) income items | $(33) | $445 | $(478) | (107.4)% | | **Comprehensive income** | **$4,152** | **$2,960** | **$1,192** | **40.3%** | [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' Equity Changes Key Data (Thousands of US Dollars, except for share count) | Indicator | March 31, 2025 | January 1, 2025 | Change Amount | | :--- | :--- | :--- | :--- | | Common stock shares | 9,704,320 | 9,667,142 | 37,178 | | Additional paid-in capital | $193,666 | $193,585 | $81 | | Retained earnings | $63,700 | $59,515 | $4,185 | | Accumulated other comprehensive (loss) income | $(811) | $(778) | $(33) | | **Total shareholders' equity** | **$256,555** | **$252,322** | **$4,233** | - Shareholders' equity increased primarily due to net income of **$4,185 thousand** and equity compensation of **$422 thousand**, partially offset by share award settlements of **$339 thousand** and other comprehensive loss of **$33 thousand**[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Statement Key Data (Thousands of US Dollars) | Indicator | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change Amount | | :--- | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $8,012 | $(2,339) | $10,351 | | Net cash provided by investing activities | $32,608 | $59,461 | $(26,853) | | Net cash used in financing activities | $(5,079) | $(53,675) | $48,596 | | Net change in cash and cash equivalents | $35,541 | $3,447 | $32,094 | | Cash and cash equivalents at end of period | $271,582 | $257,889 | $13,693 | - Operating cash flow turned positive, primarily driven by increased net income and changes in operating assets and liabilities[24](index=24&type=chunk) - Investing cash flow primarily resulted from the sale of mortgage loans and disposition of real estate[24](index=24&type=chunk) - Financing cash outflow significantly decreased, mainly due to reduced payments on Federal Home Loan Bank borrowings[24](index=24&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=13&type=section&id=NOTE%201%20%E2%80%93%20ORGANIZATION%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) First Western Financial, Inc. is a bank holding company offering comprehensive wealth management services, including private banking, trust, investment management, and mortgage services, primarily to clients in Colorado, Arizona, California, Montana, and Wyoming, with financial statements prepared under GAAP and relying on estimates for credit loss allowance, goodwill impairment, and fair value of financial instruments, having adopted ASU 2023-09 and evaluating ASU 2024-03 - The company provides private banking, personal trust, investment management, mortgage, and institutional asset management services[29](index=29&type=chunk) - Primary revenue sources include net interest income, wealth advisory fees, investment management fees, asset management fees, personal trust service fees, and net gains on mortgage loans[29](index=29&type=chunk) - Loans secured by real estate constituted **79.5%** (March 31, 2025) and **78.9%** (December 31, 2024) of the loan portfolio[35](index=35&type=chunk) - ASU 2023-09 (Improvements to Income Tax Disclosures) was adopted effective January 1, 2025[56](index=56&type=chunk) - ASU 2024-03 (Disaggregation of Expenses) is being evaluated, with adoption expected January 1, 2027, and no significant impact anticipated[58](index=58&type=chunk) [NOTE 2 – DEBT SECURITIES](index=17&type=section&id=NOTE%202%20%E2%80%93%20DEBT%20SECURITIES) As of March 31, 2025, the amortized cost of the company's held-to-maturity debt securities was **$73.846 million**, a slight decrease from December 31, 2024, primarily due to principal payments, with this portfolio mainly consisting of securities issued by U.S. government entities and agencies, having a credit loss allowance of **$71 thousand** and no past due or nonaccrual securities Debt Securities Held-to-Maturity (Thousands of US Dollars) | Indicator | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total amortized cost | $73,846 | $75,795 | | Total fair value | $67,479 | $68,161 | | Allowance for credit losses | $71 | $71 | - The held-to-maturity debt securities portfolio is predominantly composed of securities issued by U.S. government entities and agencies, with credit loss risk considered zero[42](index=42&type=chunk)[67](index=67&type=chunk) - As of March 31, 2025, and December 31, 2024, there were no past due or nonaccrual debt securities held-to-maturity[67](index=67&type=chunk) - As of March 31, 2025, the market value of pledged securities was **$29.8 million**, used to collateralize various public deposits and credit lines[64](index=64&type=chunk) [NOTE 3 – LOANS AND THE ALLOWANCE FOR CREDIT LOSSES](index=19&type=section&id=NOTE%203%20%E2%80%93%20LOANS%20AND%20THE%20ALLOWANCE%20FOR%20CREDIT%20LOSSES) As of March 31, 2025, the company's total loans (amortized cost) were **$2.419 billion**, with an allowance for credit losses of **$17.956 million**, a slight decrease from the prior quarter due to loan portfolio mix adjustments and charge-offs, partially offset by a deteriorating macroeconomic forecast and increased individually analyzed reserves, with total nonaccrual loans at **$12.751 million** and no loans past due 90 days or more and still accruing interest Loan Portfolio Summary (Thousands of US Dollars) | Indicator | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total loans (amortized cost) | $2,419,255 | $2,418,282 | | Allowance for credit losses | $(17,956) | $(18,330) | | Loans, net | $2,401,299 | $2,399,952 | | Loans accounted for under the fair value option | $6,112 | $7,283 | Nonaccrual Loans (Thousands of US Dollars) | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash, securities, and other | $1,704 | $1,704 | | Commercial and industrial | $11,047 | $11,048 | | **Total nonaccrual loans** | **$12,751** | **$12,752** | - As of March 31, 2025, and December 31, 2024, the company had no loans past due 90 days or more and still accruing interest[70](index=70&type=chunk) - The allowance for credit losses decreased by **$0.4 million** in Q1 2025, primarily due to loan portfolio mix adjustments and charge-offs, partially offset by a deteriorating macroeconomic forecast and increased individually analyzed reserves[79](index=79&type=chunk) Allowance for Credit Losses Changes (Thousands of US Dollars) | Indicator | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Beginning balance | $18,330 | $23,931 | | (Release) provision for credit losses | $192 | $699 | | Charge-offs | $(594) | $(11) | | Recoveries | $28 | $11 | | **Ending balance** | **$17,956** | **$24,630** | [NOTE 4 – GOODWILL](index=26&type=section&id=NOTE%204%20%E2%80%93%20GOODWILL) As of March 31, 2025, the company's total goodwill was **$30.4 million**, unchanged from December 31, 2024, with no impairment identified or recorded during the quarter Goodwill (Thousands of US Dollars) | Indicator | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total goodwill | $30,400 | $30,400 | - No goodwill impairment was identified or recorded as of March 31, 2025[88](index=88&type=chunk) [NOTE 5 – LEASES](index=27&type=section&id=NOTE%205%20%E2%80%93%20LEASES) As of March 31, 2025, the company's operating lease right-of-use assets and liabilities slightly decreased, with net lease cost for Q1 2025 at **$1.452 million**, an increase from the prior year, mainly due to higher operating and variable lease costs Lease Assets and Liabilities (Thousands of US Dollars) | Indicator | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Operating lease right-of-use assets | $18,476 | $19,161 | | Operating lease liabilities | $20,183 | $20,959 | Net Lease Cost (Thousands of US Dollars) | Indicator | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Operating lease cost | $876 | $754 | | Variable lease cost | $576 | $542 | | **Net lease cost** | **$1,452** | **$1,296** | - As of March 31, 2025, the weighted-average remaining lease term was **8.97 years**, and the weighted-average discount rate was **4.15%**[90](index=90&type=chunk) [NOTE 6 – DEPOSITS](index=28&type=section&id=NOTE%206%20%E2%80%93%20DEPOSITS) As of March 31, 2025, total deposits were **$2.515 billion**, a slight increase from December 31, 2024, with money market deposit accounts increasing and time deposits decreasing Deposit Composition (Thousands of US Dollars) | Deposit Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-interest-bearing deposits | $409,696 | $375,603 | | Interest-bearing deposits | $2,105,701 | $2,138,606 | | **Total deposits** | **$2,515,397** | **$2,514,209** | Interest-Bearing Deposit Details (Thousands of US Dollars) | Deposit Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Money market deposit accounts | $1,566,737 | $1,513,605 | | Time deposits | $379,533 | $471,415 | | Interest-bearing checking accounts | $144,980 | $139,374 | | Savings accounts | $14,451 | $14,212 | - As of March 31, 2025, total time deposits of **$250 million or more** amounted to **$86.091 million**[93](index=93&type=chunk) [NOTE 7 – BORROWINGS](index=29&type=section&id=NOTE%207%20%E2%80%93%20BORROWINGS) As of March 31, 2025, total borrowings were **$96.233 million**, a **12.2%** decrease from December 31, 2024, primarily due to the redemption of **$8 million** in subordinated notes and reduced reliance on Federal Home Loan Bank (FHLB) borrowings, with the company continuing to comply with all borrowing covenant requirements Borrowing Composition (Thousands of US Dollars) | Borrowing Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | FHLB and Federal Reserve Bank borrowings | $51,612 | $57,038 | | Subordinated notes | $44,621 | $52,565 | | **Total borrowings** | **$96,233** | **$109,603** | - On January 2, 2025, the company renewed a **$50 million** FHLB advance at SOFR plus **14.5 basis points**[96](index=96&type=chunk) - As of March 31, 2025, **$1.612 million** of Paycheck Protection Program Liquidity Facility (PPPLF) loans remained outstanding under FHLB and Federal Reserve Bank borrowings[97](index=97&type=chunk) - The company redeemed **$8 million** of subordinated notes, with **$0.5 million** paid before quarter-end and **$7.5 million** paid after quarter-end and reclassified to other liabilities[101](index=101&type=chunk)[219](index=219&type=chunk) - As of March 31, 2025, and December 31, 2024, the company was in compliance with all borrowing covenant requirements[102](index=102&type=chunk)[260](index=260&type=chunk) [NOTE 8 – COMMITMENTS AND CONTINGENCIES](index=30&type=section&id=NOTE%208%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) The company incurs off-balance sheet credit risk in its ordinary course of business, including unused lines of credit and standby letters of credit, with the allowance for credit losses on off-balance sheet credit risk at **$560 thousand** as of March 31, 2025, a decrease from the prior quarter, and legal proceedings not expected to have a material adverse effect on the financial statements Credit Risk Represented by Financial Instrument Contract Amounts (Thousands of US Dollars) | Indicator | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Unused lines of credit | $552,612 | $521,947 | | Standby letters of credit | $23,312 | $21,864 | | Commitments to sell loans | $40,638 | $19,769 | | Commitments to originate loans | $96,154 | $19,592 | Changes in Allowance for Credit Losses on Off-Balance Sheet Credit Risk (Thousands of US Dollars) | Indicator | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Beginning balance | $672 | $2,178 | | (Release) provision for credit losses | $(112) | $(627) | | **Ending balance** | **$560** | **$1,551** | - The company does not anticipate legal proceedings to have a material impact on the condensed consolidated financial statements[109](index=109&type=chunk) [NOTE 9 – SHAREHOLDERS' EQUITY](index=31&type=section&id=NOTE%209%20%E2%80%93%20SHAREHOLDERS'%20EQUITY) As of March 31, 2025, the company had **9,704,320** shares of common stock outstanding, having repurchased **100 shares** under its 2024 repurchase program with **194,399 shares** remaining available, and **493,349 shares** available for issuance under the 2016 Omnibus Incentive Plan, with equity compensation expense for time-vested units at **$0.4 million** in Q1 2025 - As of March 31, 2025, **9,704,320** common shares were outstanding[16](index=16&type=chunk) - In Q1 2025, the company repurchased **100 shares** of common stock under its 2024 repurchase program[111](index=111&type=chunk) - As of March 31, 2025, **194,399 shares** remained available for repurchase under the 2024 repurchase program[111](index=111&type=chunk) - As of March 31, 2025, **493,349 shares** were available for issuance under the 2016 Omnibus Incentive Plan[112](index=112&type=chunk) Equity Compensation Expense (Thousands of US Dollars) | Incentive Type | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Time-vested units | $400 | $300 | | Financial performance units | $63 | $(120) | - As of March 31, 2025, unrecognized equity compensation expense for time-vested units was **$3.2 million**, expected to be recognized over **2.8 years**[116](index=116&type=chunk) [NOTE 10 – EARNINGS PER COMMON SHARE](index=34&type=section&id=NOTE%2010%20%E2%80%93%20EARNINGS%20PER%20COMMON%20SHARE) In Q1 2025, basic and diluted earnings per common share were both **$0.43**, an increase from **$0.26** in Q1 2024, reflecting higher net income Earnings Per Common Share (US Dollars per share) | Indicator | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Basic earnings per common share | $0.43 | $0.26 | | Diluted earnings per common share | $0.43 | $0.26 | Weighted-Average Shares Outstanding (Shares) | Indicator | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Basic weighted-average shares outstanding | 9,704,419 | 9,621,309 | | Diluted weighted-average shares outstanding | 9,798,591 | 9,710,764 | [NOTE 11 – INCOME TAXES](index=34&type=section&id=NOTE%2011%20%E2%80%93%20INCOME%20TAXES) In Q1 2025, income tax expense was **$1.172 million** with an effective tax rate of **21.9%**, compared to **$1.064 million** and **29.7%** in Q1 2024 Income Tax Expense and Effective Tax Rate (Thousands of US Dollars) | Indicator | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Income tax expense | $1,172 | $1,064 | | Effective tax rate | 21.9% | 29.7% | [NOTE 12 – FAIR VALUE](index=35&type=section&id=NOTE%2012%20%E2%80%93%20FAIR%20VALUE) The company regularly measures various financial instruments at fair value, categorized into three levels based on input observability, with mortgage loans held for sale and loans measured at fair value both decreasing as of March 31, 2025, and non-recurring fair value measurements primarily involving other real estate owned (OREO) and collateral-dependent loans Assets and Liabilities Measured at Fair Value (Thousands of US Dollars) | Indicator | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Mortgage loans held for sale | $10,557 | $25,455 | | Loans measured at fair value | $6,112 | $7,283 | | Forward commitments and FSC | $5 | $225 | | Equity securities | $761 | $752 | | Collateralized assets | $261 | $235 | | Interest rate lock commitments (IRLCs), net | $801 | $358 | | Equity warrants | $765 | $765 | | Swap derivative assets | $1,013 | $1,060 | | Forward commitments and FSC liabilities | $128 | $13 | | Swap derivative liabilities | $1,013 | $956 | - Net gains on loans measured at fair value were **$0.186 million** in Q1 2025, compared to **$0.129 million** in Q1 2024[135](index=135&type=chunk) - Fair value measurements for other real estate owned (OREO) and collateral-dependent loans are typically based on appraisals and classified as Level 3 inputs[138](index=138&type=chunk)[139](index=139&type=chunk) Non-Recurring Fair Value Measurements (Thousands of US Dollars) | Category | March 31, 2025 Fair Value | | :--- | :--- | | OREO: 1-4 family residential | $4,385 | | Collateral-dependent loans, net: Commercial and industrial | $794 | | Collateral-dependent loans, net: Commercial and industrial | $132 | | Collateral-dependent loans, net: Owner-occupied commercial real estate | $845 | [NOTE 13 – DERIVATIVES](index=44&type=section&id=NOTE%2013%20%E2%80%93%20DERIVATIVES) The company utilizes interest rate swaps as part of its asset/liability management strategy to manage interest rate risk, including FHLB borrowing swaps designated as cash flow hedges (notional amount **$50 million**) and client variable-rate loan swaps not designated as hedging instruments (notional amount **$71.369 million**), with cash flow hedges determined to be effective Derivative Fair Values (Thousands of US Dollars) | Derivative Type | March 31, 2025 Notional Amount | March 31, 2025 Fair Value | December 31, 2024 Notional Amount | December 31, 2024 Fair Value | | :--- | :--- | :--- | :--- | :--- | | Interest rate swaps – cash flow hedges | $50,000 | $30 | $50,000 | $129 | | Interest rate swaps – client loan related (not designated as hedges) | $71,369 | $983 | $70,353 | $931 | | Client loan related interest rate swap liabilities (not designated as hedges) | $71,369 | $1,013 | $70,353 | $956 | - Cash flow hedges were determined to be effective as of March 31, 2025, and December 31, 2024[152](index=152&type=chunk) [NOTE 14 – SEGMENT REPORTING](index=45&type=section&id=NOTE%2014%20%E2%80%93%20SEGMENT%20REPORTING) The company has two reportable operating segments: Wealth Management and Mortgage, with the Wealth Management segment (including parent company activities) experiencing a significant **57.2%** increase in income before income taxes to **$5.351 million** in Q1 2025, while the Mortgage segment's income before income taxes sharply decreased by **96.6%** to **$6 thousand** Segment Income Before Income Taxes (Thousands of US Dollars) | Segment | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change Amount | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Wealth Management | $5,351 | $3,404 | $1,947 | 57.2% | | Mortgage | $6 | $175 | $(169) | (96.6)% | | **Consolidated Total** | **$5,357** | **$3,579** | **$1,778** | **49.7%** | - Wealth Management segment revenue growth was primarily driven by increased net interest income, higher non-interest income, and reduced non-interest expense[211](index=211&type=chunk) - Mortgage segment revenue declined mainly due to reduced net gains on mortgage loans, particularly a decrease in interest rate lock pull-through rates[212](index=212&type=chunk) [NOTE 15 – LOW-INCOME HOUSING TAX CREDIT INVESTMENTS](index=47&type=section&id=NOTE%2015%20%E2%80%93%20LOW-INCOME%20HOUSING%20TAX%20CREDIT%20INVESTMENTS) As of March 31, 2025, total Low-Income Housing Tax Credit (LIHTC) investments were **$3.6 million**, with unused commitments of **$3.4 million**, and both amortization expense and tax credits were **$0.2 million** in Q1 2025, with no impairment losses incurred LIHTC Investments (Thousands of US Dollars) | Indicator | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total LIHTC investments | $3,600 | $3,100 | | Total unused commitments | $3,400 | $4,100 | LIHTC Related Expenses and Benefits (Thousands of US Dollars) | Indicator | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Amortization expense | $200 | $200 | | Tax credits and other benefits | $200 | $200 | - No impairment losses were incurred in Q1 2025[163](index=163&type=chunk) [NOTE 16 – REGULATORY CAPITAL MATTERS](index=47&type=section&id=NOTE%2016%20%E2%80%93%20REGULATORY%20CAPITAL%20MATTERS) As of March 31, 2025, First Western and its bank met all applicable regulatory capital requirements and were classified as "well capitalized" institutions, with all capital ratios significantly exceeding Basel III minimums and "well capitalized" standards Bank Regulatory Capital Ratios (Thousands of US Dollars) | Indicator | March 31, 2025 Actual Ratio | Capital Adequacy Requirement Ratio | Well Capitalized (Corrective Action) Requirement Ratio | | :--- | :--- | :--- | :--- | | Bank Tier 1 Capital to Risk-Weighted Assets | 11.76% | 6.0% | 8.0% | | Bank CET1 to Risk-Weighted Assets | 11.76% | 4.5% | 6.5% | | Bank Total Capital to Risk-Weighted Assets | 12.52% | 8.0% | 10.0% | | Bank Tier 1 Capital to Average Assets | 9.24% | 4.0% | 5.0% | Consolidated Regulatory Capital Ratios (Thousands of US Dollars) | Indicator | March 31, 2025 Actual Ratio | | :--- | :--- | | Consolidated Tier 1 Capital to Risk-Weighted Assets | 10.35% | | Consolidated CET1 to Risk-Weighted Assets | 10.35% | | Consolidated Total Capital to Risk-Weighted Assets | 13.15% | | Consolidated Tier 1 Capital to Average Assets | 8.12% | - As of March 31, 2025, the bank had **$118.6 million** in retained earnings available for dividend payments[170](index=170&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's detailed discussion and analysis of the company's financial condition and results of operations for the three months ended March 31, 2025, covering company overview, industry developments, operating results, financial condition, liquidity and capital resources, and critical accounting policies [Company Overview](index=49&type=section&id=Company%20Overview) First Western Financial, Inc., founded in 2002 and headquartered in Denver, is a financial holding company dedicated to providing comprehensive wealth management services, including banking, trust, and investment management, to high-net-worth clients in the Western U.S. As of March 31, 2025, total assets were **$2.91 billion**, and assets under management (AUM) were **$7.18 billion** - The company was founded in **2002** and is headquartered in Denver, Colorado[173](index=173&type=chunk) - It offers comprehensive wealth management services, including banking, trust, and investment management products and services[173](index=173&type=chunk) - Target clients are entrepreneurs, professionals, and high-net-worth individuals, typically with **over $1 million** in liquid net worth[173](index=173&type=chunk) Company Size (Thousands of US Dollars) | Indicator | March 31, 2025 | | :--- | :--- | | Total Assets | $2,910,000 | | Total Income Before Income Taxes | $24,700 | | Assets Under Management (AUM) | $7,180,000 | [Recent Industry Developments](index=49&type=section&id=Recent%20Industry%20Developments) Despite economic and regulatory uncertainties, the banking industry is projected to perform strongly in 2025, with the company maintaining stability, holding-to-maturity securities at **2.5%** of total assets, limited exposure to non-owner-occupied office commercial real estate (CRE), and a diversified client base - The banking industry is projected to have a stronger performance in **2025**[176](index=176&type=chunk) - The company's held-to-maturity securities represent **2.5%** of total assets, with unrealized losses representing **2.5%** of total shareholders' equity as of March 31, 2025[176](index=176&type=chunk) - The company has limited exposure to non-owner-occupied office commercial real estate (CRE)[176](index=176&type=chunk) - The company's client base is diversified, with no single industry concentration risk[176](index=176&type=chunk) [Primary Factors Used to Evaluate the Results of Operations](index=49&type=section&id=Primary%20Factors%20Used%20to%20Evaluate%20the%20Results%20of%20Operations) The company primarily evaluates operating results through net interest income, non-interest income, and non-interest expense, with net interest income influenced by loan growth, interest rates, and funding costs; non-interest income mainly from trust and investment management fees and mortgage net gains; and non-interest expense primarily comprising salaries, benefits, occupancy, and professional services - Primary factors for evaluating operating results include net interest income, non-interest income, and non-interest expense[177](index=177&type=chunk) - Net interest income is affected by loan and investment securities yields, deposit costs, borrowing rates, and changes in market interest rates[178](index=178&type=chunk) - Non-interest income primarily includes trust and investment management fees, net gains on mortgage loans, net gains on loans held for sale, bank service charges, risk management and insurance fees, and bank-owned life insurance income[179](index=179&type=chunk) - Non-interest expense primarily includes salaries and employee benefits, occupancy and equipment, professional services, technology and information systems, data processing, marketing, amortization of other intangible assets, and other operating expenses[179](index=179&type=chunk)[186](index=186&type=chunk) [Results of Operations](index=52&type=section&id=Results%20of%20Operations) For the three months ended March 31, 2025, net income attributable to common shareholders was **$4.2 million**, a **68.0%** increase year-over-year, with income before income taxes at **$5.4 million**, up **50.0%**, primarily driven by a **$1.4 million** increase in net interest income, a **$0.1 million** increase in non-interest income, and a **$0.3 million** decrease in non-interest expense Operating Results Overview (Thousands of US Dollars) | Indicator | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change Amount | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Net income attributable to common shareholders | $4,185 | $2,515 | $1,670 | 66.4% | | Income before income taxes | $5,357 | $3,579 | $1,778 | 49.7% | | Net interest income (before provision for credit losses) | $17,453 | $16,070 | $1,383 | 8.6% | | Total non-interest income | $7,345 | $7,277 | $68 | 0.9% | | Total non-interest expense | $19,361 | $19,696 | $(335) | (1.7)% | [Net Interest Income](index=52&type=section&id=Net%20Interest%20Income) Net interest income (before provision for credit losses) for Q1 2025 was **$17.5 million**, an **8.7%** increase year-over-year, with net interest margin expanding by **27 basis points** to **2.61%**, mainly due to a **54 basis point** decrease in the average rate on interest-bearing deposits, partially offsetting a decrease in average loan balances Net Interest Income and Net Interest Margin (Thousands of US Dollars) | Indicator | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net interest income | $17,453 | $16,070 | | Net interest spread | 1.92% | 1.41% | | Net interest margin | 2.61% | 2.34% | - The average rate on interest-bearing deposits decreased by **54 basis points** from **4.13%** in Q1 2024 to **3.59%** in Q1 2025[189](index=189&type=chunk)[192](index=192&type=chunk) - Average loan balances decreased by **$82.8 million**[188](index=188&type=chunk) - Average loan yield increased from **5.66%** in Q1 2024 to **5.71%** in Q1 2025[190](index=190&type=chunk)[192](index=192&type=chunk) [Provision for Credit Losses](index=54&type=section&id=Provision%20for%20Credit%20Losses) In Q1 2025, the company recorded an **$80 thousand** provision for credit losses, largely consistent with the prior year, primarily due to a charge-off on a previously classified loan held for sale and a slight deterioration in macroeconomic forecasts, partially offset by loan portfolio mix adjustments and a release of the allowance for unfunded loan commitments Provision for Credit Losses (Thousands of US Dollars) | Indicator | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Provision for credit losses | $80 | $72 | - The provision for credit losses was primarily impacted by a charge-off on a loan held for sale and deteriorating macroeconomic forecasts, partially offset by portfolio mix adjustments and a release of the allowance for unfunded loan commitments[194](index=194&type=chunk) [Non-Interest Income](index=54&type=section&id=Non-Interest%20Income) Non-interest income for Q1 2025 slightly increased by **0.9%** to **$7.3 million**, primarily driven by significant growth in net gains on other real estate owned (OREO) sales and net gains on loans measured at fair value, partially offset by decreases in trust and investment management fees and bank service charges Non-Interest Income Details (Thousands of US Dollars) | Indicator | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change Amount | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Trust and investment management fees | $4,677 | $4,930 | $(253) | (5.1)% | | Net gains on mortgage loans | $1,067 | $1,264 | $(197) | (15.6)% | | Net gains on loans held for sale | $222 | $117 | $105 | 89.7% | | Bank service charges | $422 | $891 | $(469) | (52.6)% | | Risk management and insurance fees | $259 | $49 | $210 | 428.6% | | Bank-owned life insurance income | $110 | $105 | $5 | 4.8% | | Net gains (losses) on loans measured at fair value | $6 | $(302) | $308 | 102.0% | | Net gains on other real estate owned | $459 | $0 | $459 | * | | Unrealized gains (losses) on equity securities | $11 | $(6) | $17 | 283.3% | | Other | $112 | $229 | $(117) | (51.1)% | | **Total non-interest income** | **$7,345** | **$7,277** | **$68** | **0.9%** | - Net gains on other real estate owned increased by **$0.459 million**, primarily due to the sale of two largest OREO properties[202](index=202&type=chunk) - Bank service charges decreased by **$0.469 million**, mainly due to a large loan prepayment penalty collected in Q1 2024[200](index=200&type=chunk) - Risk management and insurance fees increased by **$0.21 million**, primarily due to an increase in insurance client agreements[200](index=200&type=chunk) [Non-Interest Expense](index=55&type=section&id=Non-Interest%20Expense) Non-interest expense for Q1 2025 decreased by **1.7%** to **$19.4 million**, primarily due to reductions in professional services fees and other operating costs, although salaries and benefits, occupancy and equipment, and data processing expenses increased Non-Interest Expense Details (Thousands of US Dollars) | Indicator | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change Amount | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Salaries and employee benefits | $11,480 | $11,267 | $213 | 1.9% | | Occupancy and equipment | $2,210 | $1,976 | $234 | 11.8% | | Professional services | $1,704 | $2,411 | $(707) | (29.3)% | | Technology and information systems | $1,078 | $1,010 | $68 | 6.7% | | Data processing | $1,122 | $948 | $174 | 18.4% | | Marketing | $216 | $194 | $22 | 11.3% | | Amortization of other intangible assets | $51 | $57 | $(6) | (10.5)% | | Other | $1,500 | $1,833 | $(333) | (18.2)% | | **Total non-interest expense** | **$19,361** | **$19,696** | **$(335)** | **(1.7)%** | - Professional services fees decreased by **$0.707 million**, primarily due to lower legal, audit, and FDIC insurance expenses[205](index=205&type=chunk) - Other expenses decreased by **$0.333 million**, mainly due to lower costs associated with the disposition of problem assets[206](index=206&type=chunk) - Occupancy and equipment expenses increased by **$0.234 million**, primarily due to additional rent expense from a lease extension in Q1 2024[205](index=205&type=chunk) [Income Tax](index=56&type=section&id=Income%20Tax) Income tax expense for Q1 2025 was **$1.172 million** with an effective tax rate of **21.9%**, compared to **$1.064 million** and **29.7%** in Q1 2024 Income Tax Expense and Effective Tax Rate (Thousands of US Dollars) | Indicator | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Income tax expense | $1,172 | $1,064 | | Effective tax rate | 21.9% | 29.7% | [Segment Reporting](index=57&type=section&id=Segment%20Reporting) The Wealth Management segment's income before income taxes significantly increased by **57.2%** to **$5.351 million** in Q1 2025, driven by higher net interest income and non-interest income, and reduced non-interest expense, while the Mortgage segment's income before income taxes sharply declined by **96.6%** to **$6 thousand** due to decreased net gains on mortgage loans Segment Income Before Income Taxes (Thousands of US Dollars) | Segment | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change Amount | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Wealth Management | $5,351 | $3,404 | $1,947 | 57.2% | | Mortgage | $6 | $175 | $(169) | (96.6)% | - Wealth Management segment total revenue increased by **7.2%** to **$23.468 million**[210](index=210&type=chunk) - Mortgage segment total revenue (before non-interest expense) decreased by **9.3%** to **$1.25 million**[212](index=212&type=chunk) [Financial Condition](index=59&type=section&id=Financial%20Condition) As of March 31, 2025, total assets slightly decreased by **0.4%** to **$2.906 billion**, with cash and cash equivalents significantly increasing, while other real estate owned and mortgage loans held for sale substantially decreased, total deposits remained largely flat, total borrowings decreased, and shareholders' equity increased due to net income Balance Sheet Key Data (Thousands of US Dollars) | Indicator | March 31, 2025 | December 31, 2024 | Change Amount | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $271,582 | $236,041 | $35,541 | 15.1% | | Mortgage loans held for sale | $10,557 | $25,455 | $(14,898) | (58.5)% | | Other real estate owned, net | $4,385 | $35,929 | $(31,544) | (87.8)% | | **Total assets** | **$2,906,300** | **$2,919,037** | **$(12,737)** | **(0.4)%** | | Total deposits | $2,515,397 | $2,514,209 | $1,188 | 0.0% | | Total borrowings | $96,233 | $109,603 | $(13,370) | (12.2)% | | Shareholders' equity | $256,555 | $252,322 | $4,233 | 1.7% | - Cash and cash equivalents increased primarily due to proceeds from the sale of two OREO properties during the quarter[215](index=215&type=chunk) - Net other real estate owned decreased by **$31.544 million**, primarily due to the sale of two OREO properties in Q1[217](index=217&type=chunk) - Borrowings decreased by **$13.37 million**, mainly due to the redemption of **$8 million** in subordinated notes and reduced reliance on FHLB borrowings[219](index=219&type=chunk) [Assets Under Management](index=61&type=section&id=Assets%20Under%20Management) As of March 31, 2025, assets under management (AUM) were **$7.177 billion**, a slight increase from March 31, 2024, but a **2.0%** decrease from the beginning of the period, primarily due to net withdrawals Assets Under Management (AUM) Overview (Millions of US Dollars) | Indicator | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Managed trust balances, end of period | $1,945 | $2,051 | | Directed trust balances, end of period | $1,930 | $1,665 | | Investment agency balances, end of period | $1,532 | $1,624 | | Custody balances, end of period | $653 | $726 | | **Total AUM excluding 401(k)/retirement** | **$6,060** | **$6,066** | | 401(k)/retirement balances | $1,117 | $1,075 | | **Total Assets Under Management** | **$7,177** | **$7,141** | - Assets under management (AUM) decreased by **$144 million (2.0%)** in Q1 2025, primarily attributable to net withdrawals[224](index=224&type=chunk) [Debt Securities](index=63&type=section&id=Debt%20Securities) All company debt securities are classified as held-to-maturity and recorded at amortized cost, with the book value of held-to-maturity debt securities at **$73.846 million** as of March 31, 2025, a slight decrease from December 31, 2024, and an allowance for credit losses of **$100 thousand**, with no past due or nonaccrual securities - All debt securities are classified as held-to-maturity[227](index=227&type=chunk) Held-to-Maturity Debt Securities Book Value (Thousands of US Dollars) | Indicator | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total amortized cost | $73,846 | $75,795 | | Allowance for credit losses | $100 | $100 | - As of March 31, 2025, and December 31, 2024, there were no past due or nonaccrual debt securities held-to-maturity[67](index=67&type=chunk) [Loan Portfolio](index=65&type=section&id=Loan%20Portfolio) As of March 31, 2025, the company's total loan portfolio (amortized cost) was **$2.419 billion**, remaining largely flat, with Commercial Real Estate (CRE) as the largest loan category, accounting for **33.6%** of total loans, an average loan balance of **$2.55 million**, and a weighted-average loan-to-value (LTV) of **53.6%**, while the company has limited exposure to the office sector and continuously reviews and stress tests loans to manage credit risk Loan Portfolio Type (Amortized Cost, Thousands of US Dollars) | Loan Type | March 31, 2025 | Percentage | December 31, 2024 | Percentage | | :--- | :--- | :--- | :--- | :--- | | Cash, securities, and other | $100,994 | 4.2% | $119,834 | 5.0% | | Consumer and other | $16,829 | 0.7% | $17,482 | 0.7% | | Construction and development | $290,110 | 12.0% | $314,481 | 13.0% | | 1-4 family residential | $973,718 | 40.2% | $962,901 | 39.8% | | Non-owner-occupied commercial real estate (CRE) | $633,641 | 26.2% | $611,239 | 25.3% | | Owner-occupied commercial real estate (CRE) | $181,207 | 7.5% | $172,019 | 7.1% | | Commercial and industrial | $222,756 | 9.2% | $220,326 | 9.1% | | **Total loans held for investment, at amortized cost** | **$2,419,255** | **100.0%** | **$2,418,282** | **100.0%** | - Commercial Real Estate (CRE) is the company's largest loan category, totaling **$814.8 million**, representing **33.6%** of total loans as of March 31, 2025[236](index=236&type=chunk) - The weighted-average loan-to-value (LTV) for the CRE portfolio was **53.6%** as of March 31, 2025[237](index=237&type=chunk) - The company has limited exposure to central business district office properties, with its office portfolio generally diversified across high-occupancy suburban markets[237](index=237&type=chunk) Loan Interest Rate Type (Amortized Cost, Thousands of US Dollars) | Interest Rate Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Fixed-rate loans | $988,613 | $1,003,445 | | Variable-rate loans | $1,436,754 | $1,422,120 | | **Total loans** | **$2,425,367** | **$2,425,565** | [Non-Performing Assets](index=69&type=section&id=Non-Performing%20Assets) As of March 31, 2025, total non-performing assets were **$17.136 million**, a significant **64.8%** decrease from December 31, 2024, primarily due to the sale of two other real estate owned (OREO) properties, with nonaccrual loans remaining largely flat, and the ratio of non-performing assets to total assets decreasing to **0.59%** Non-Performing Assets Overview (Amortized Cost, Thousands of US Dollars) | Indicator | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total nonaccrual loans | $12,751 | $12,752 | | Other real estate owned (OREO) | $4,385 | $35,929 | | **Total non-performing assets** | **$17,136** | **$48,681** | - Total non-performing assets decreased by **64.8%**, primarily due to the sale of two OREO properties[245](index=245&type=chunk) Non-Performing Asset Ratios | Indicator | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Nonaccrual loans to total loans | 0.53% | 0.53% | | Non-performing assets to total assets | 0.59% | 1.67% | | Allowance for credit losses to nonaccrual loans | 140.82% | 143.74% | [Credit Quality Indicators](index=70&type=section&id=Credit%20Quality%20Indicators) As of March 31, 2025, the vast majority of the company's loan portfolio (**$2.372 billion**) was rated as "Pass," while total substandard loans increased to **$44.546 million**, including **$12.8 million** in nonaccrual loans Loan Credit Quality Indicators (Amortized Cost, Thousands of US Dollars) | Credit Rating | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Pass | $2,372,355 | $2,382,005 | | Special Mention | $2,354 | $9,120 | | Substandard | $44,546 | $27,157 | | Doubtful | $0 | $0 | | Not Rated | $6,112 | $7,283 | | **Total** | **$2,425,367** | **$2,425,565** | - As of March 31, 2025, and December 31, 2024, the substandard category included **$12.8 million** in nonaccrual loans[246](index=246&type=chunk) [Allowance for Credit Losses on Loans](index=70&type=section&id=Allowance%20for%20Credit%20Losses%20on%20Loans) As of March 31, 2025, the allowance for credit losses on loans was **$17.956 million**, representing **0.74%** of total loans, a decrease from **1.00%** as of March 31, 2024, with the quarter's change in allowance primarily influenced by loan portfolio mix adjustments and charge-offs, partially offset by a deteriorating macroeconomic forecast and increased individually analyzed reserves Allowance for Credit Losses on Loans Overview (Thousands of US Dollars) | Indicator | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Ending allowance for credit losses | $17,956 | $24,630 | | Allowance for credit losses to total loans | 0.74% | 1.00% | | Net charge-offs to average loans | 0.02% | 0.00% | - In Q1 2025, a **$0.5 million** release was recorded for collectively evaluated loans, and a **$0.1 million** provision was recorded for individually analyzed loans[247](index=247&type=chunk) Allowance for Credit Losses Allocation (Thousands of US Dollars) | Loan Category | March 31, 2025 Amount | March 31, 2025 Percentage | December 31, 2024 Amount | December 31, 2024 Percentage | | :--- | :--- | :--- | :--- | :--- | | Cash, securities, and other | $391 | 4.2% | $410 | 5.0% | | Consumer and other | $151 | 0.7% | $185 | 0.7% | | Construction and development | $4,299 | 12.0% | $5,184 | 13.0% | | 1-4 family residential | $5,321 | 40.2% | $5,200 | 39.8% | | Non-owner-occupied commercial real estate | $4,310 | 26.2% | $4,340 | 25.3% | | Owner-occupied commercial real estate | $915 | 7.5% | $654 | 7.1% | | Commercial and industrial | $2,569 | 9.2% | $2,357 | 9.1% | | **Total allowance for credit losses** | **$17,956** | **100.0%** | **$18,330** | **100.0%** | [Deferred Tax Assets, Net](index=72&type=section&id=Deferred%20Tax%20Assets,%20Net) As of March 31, 2025, net deferred tax assets were **$2.9 million**, a **7.2%** decrease from December 31, 2024 Deferred Tax Assets, Net (Thousands of US Dollars) | Indicator | March 31, 2025 | December 31, 2024 | Change Amount | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Net deferred tax assets | $2,856 | $3,079 | $(223) | (7.2)% | [Deposits](index=72&type=section&id=Deposits) As of March 31, 2025, total deposits were **$2.515 billion**, largely unchanged from December 31, 2024, with money market deposit accounts increasing and time deposits decreasing, and the average cost of funds for Q1 2025 at **3.13%**, a decrease from the prior year Total Deposits (Thousands of US Dollars) | Indicator | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total deposits | $2,515,397 | $2,514,209 | Average Deposit Balances and Rates (Thousands of US Dollars) | Deposit Type | March 31, 2025 Average Balance | March 31, 2025 Average Rate | March 31, 2024 Average Balance | March 31, 2024 Average Rate | | :--- | :--- | :--- | :--- | :--- | | Money market deposit accounts | $1,523,891 | 3.67% | $1,376,621 | 4.30% | | Total time deposits | $415,749 | 4.55% | $471,676 | 4.90% | | Non-interest-bearing accounts | $363,922 | - | $446,457 | - | | **Total deposits** | **$2,454,427** | **3.06%** | **$2,454,703** | **3.38%** | - The average cost of funds for Q1 2025 was **3.13%**, compared to **3.45%** for Q1 2024[255](index=255&type=chunk) - Non-interest-bearing deposits represented **14.8%** of average total deposits in Q1 2025, down from **18.2%** in Q1 2024[254](index=254&type=chunk) [Borrowings](index=73&type=section&id=Borrowings) As of March 31, 2025, total borrowings were **$96.233 million**, a **12.2%** decrease from December 31, 2024, primarily due to the redemption of subordinated notes and reduced reliance on FHLB borrowings, with the company continuing to comply with all borrowing covenant requirements Borrowing Balances (Thousands of US Dollars) | Borrowing Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | FHLB borrowings | $50,000 | $55,000 | | Federal Reserve Bank borrowings | $1,612 | $2,038 | | Subordinated notes | $44,621 | $52,565 | | **Total** | **$96,233** | **$109,603** | - Borrowings decreased primarily due to the redemption of subordinated notes and reduced reliance on FHLB borrowings during the quarter[259](index=259&type=chunk) - The company complies with all borrowing covenant requirements[260](index=260&type=chunk) [Derivatives](index=73&type=section&id=Derivatives) The company utilizes interest rate swaps to manage interest rate risk, including FHLB borrowing swaps designated as cash flow hedges (notional amount **$50 million**) and client variable-rate loan swaps not designated as hedging instruments (notional amount **$71.4 million**) - Cash flow hedge interest rate swaps had a notional amount of **$50 million** as of March 31, 2025[261](index=261&type=chunk) - Client loan-related interest rate swaps not designated as hedging instruments had a notional amount of **$71.4 million** as of March 31, 2025[262](index=262&type=chunk) [Liquidity and Capital Resources](index=74&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity primarily stems from interest-bearing and non-interest-bearing deposits, supplemented by FHLB and correspondent bank borrowings, with total shareholders' equity increasing by **1.7%** to **$256.6 million** as of March 31, 2025, due to net income, and both the company and its bank meeting all applicable regulatory capital requirements and classified as "well capitalized" institutions - Primary sources of funds are interest-bearing and non-interest-bearing deposits, with the primary use of funds being loans[263](index=263&type=chunk)[264](index=264&type=chunk) Funding Sources and Uses Composition (Percentage of Average Total Assets) | Indicator | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Non-interest-bearing deposits | 12.76% | 15.57% | | Interest-bearing deposits | 73.27% | 70.04% | | FHLB and Federal Reserve Bank borrowings | 1.82% | 3.22% | | Subordinated notes | 1.84% | 1.83% | | Total loans | 83.92% | 86.48% | | Investment securities | 2.65% | 2.60% | - As of March 31, 2025, total shareholders' equity was **$256.6 million**, a **1.7%** increase from December 31, 2024, primarily due to year-to-date net income[265](index=265&type=chunk) - The company and its bank meet all applicable regulatory capital requirements, and the bank is classified as a "well capitalized" institution[267](index=267&type=chunk) [Contractual Obligations and Off-Balance Sheet Arrangements](index=75&type=section&id=Contractual%20Obligations%20and%20Off-Balance%20Sheet%20Arrangements) As of March 31, 2025, total future contractual obligations were **$501.7 million**, primarily comprising time deposits, FHLB and Federal Reserve Bank borrowings, subordinated notes, and minimum lease payments, with the company also having off-balance sheet arrangements like committed credit lines, but these are not expected to materially impact financial condition Future Contractual Obligations (Thousands of US Dollars) | Obligation Type | 1 Year or Less | 1 to 3 Years | 3 to 5 Years | 5 Years or More | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | FHLB and Federal Reserve Bank borrowings | $50,000 | $0 | $1,612 | $0 | $51,612 | | Subordinated notes | $0 | $0 | $0 | $44,621 | $44,621 | | Time deposits | $336,286 | $42,729 | $518 | $0 | $379,533 | | Minimum lease payments | $2,066 | $3,003 | $4,200 | $16,633 | $25,902 | | **Total** | **$388,352** | **$45,732** | **$6,330** | **$61,254** | **$501,668** | - The company does not believe off-balance sheet arrangements will have a material effect on its financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources[269](index=269&type=chunk) [Critical Accounting Policies](index=75&type=section&id=Critical%20Accounting%20Policies) The company's critical accounting policies and procedures are detailed in Note 1 to the condensed consolidated financial statements and in the 2024 Annual Report on Form 10-K - Critical accounting policies are described in Note 1 and the 2024 Annual Report on Form 10-K[270](index=270&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=75&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company primarily faces interest rate risk, actively managed through asset/liability strategies and board oversight, with a sensitivity analysis as of March 31, 2025, indicating a **2.23%** change in net interest income and a **-7.78%** change in equity fair value with a **200 basis point** increase in interest rates - The company's market risk primarily arises from interest rate risk inherent in its lending, investing, and deposit-taking activities[271](index=271&type=chunk) - The company does not hold market risk sensitive instruments for trading purposes[271](index=271&type=chunk) Interest Rate Sensitivity Analysis (Percentage) | Interest Rate Change (Basis Points) | Net Interest Income Change (March 31, 2025) | Equity Fair Value Change (March 31, 2025) | | :--- | :--- | :--- | | +200 | 2.23% | (7.78)% | | +100 | 2.60% | (2.26)% | | Base | 0% | 0% | | -100 | 2.61% | 5.53% | | -200 | 12.44% | (0.54)% | - Model simulations indicate the company's balance sheet maintained a similar interest rate risk profile as of March 31, 2025, compared to December 31, 2024[276](index=276&type=chunk) [Item 4. Controls and Procedures](index=76&type=section&id=Item%204.%20Controls%20and%20Procedures) As of March 31, 2025, the company's management, including the Chief Executive Officer and Chief Financial Officer, assessed and concluded that disclosure controls and procedures were effective, with no significant changes in internal control over financial reporting during the quarter - As of March 31, 2025, the company's disclosure controls and procedures were determined to be effective[280](index=280&type=chunk) - No significant changes in internal control over financial reporting occurred during the three months ended March 31, 2025[281](index=281&type=chunk) [PART II. OTHER INFORMATION](index=77&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=77&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the ordinary course of business, but management, after consulting legal counsel, believes these actions, individually or in aggregate, will not materially affect the condensed consolidated financial statements if adversely determined - The company does not anticipate legal proceedings to have a material impact on the condensed consolidated financial statements[282](index=282&type=chunk) [Item 1A. Risk Factors](index=77&type=section&id=Item%201A.%20Risk%20Factors) The risk factors disclosed in the company's 2024 Annual Report on Form 10-K have not materially changed during this reporting period - Risk factors are consistent with those disclosed in the company's 2024 Annual Report on Form 10-K, with no material changes[283](index=283&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=77&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In March 2025, the company repurchased **100 shares** of common stock under its 2024 repurchase program, with **194,399 shares** remaining available, and additionally, **17,339 shares** were used for tax payments related to equity awards through employee net settlement Issuer Purchases of Equity Securities | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans | Maximum Number of Shares that May Yet Be Purchased Under the Plans | | :--- | :--- | :--- | :--- | :--- | | January 1 to January 31, 2025 | 17,339 | $19.57 | — | 194,499 | | February 1 to February 28, 2025 | — | — | — | 194,499 | | March 1 to March 31, 2025 | 100 | $18.50 | 100 | 194,399 | - **17,339 shares** were net settled by employees to cover income taxes related to vested restricted stock awards[284](index=284&type=chunk) [Item 3. Defaults upon Senior Securities](index=77&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) Not applicable - Not applicable[285](index=285&type=chunk) [Item 4. Mine Safety Disclosures](index=77&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable - Not applicable[286](index=286&type=chunk) [Item 5. Other Information](index=77&type=section&id=Item%205.%20Other%20Information) Not applicable - Not applicable[287](index=287&type=chunk) [Item 6. Exhibits](index=78&type=section&id=Item%206.%20Exhibits) This section lists the exhibits accompanying the Form 10-Q, including certifications from the Chief Executive Officer and Chief Financial Officer, and interactive data files in Inline XBRL format - Exhibits include certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a) and 18 U.S.C. Section 1350[288](index=288&type=chunk) - Exhibits also include Inline XBRL Instance Document, Taxonomy Extension Schema Document, Calculation Linkbase Document, Definition Linkbase Document, Label Linkbase Document, and Presentation Linkbase Document[288](index=288&type=chunk) [SIGNATURES](index=79&type=section&id=SIGNATURES) [Signatures](index=79&type=section&id=Signatures) This report was signed by Scott C. Wylie, Chairman, Chief Executive Officer, and President, and David R. Weber, Chief Financial Officer and Treasurer, of First Western Financial, Inc. on May 7, 2025 - The report was signed by Scott C. Wylie (Chairman, Chief Executive Officer, and President) and David R. Weber (Chief Financial Officer and Treasurer)[293](index=293&type=chunk)[294](index=294&type=chunk) - The signing date was May 7, 2025[293](index=293&type=chunk)[294](index=294&type=chunk)

Core Viewpoint - First Western (MYFW) is experiencing solid improvement in earnings estimates, which is likely to positively impact its stock price momentum [1][2]. Earnings Estimates - Analysts are increasingly optimistic about First Western's earnings prospects, leading to higher estimates that correlate with stock price movements [2]. - The current quarter's earnings estimate is projected at $0.39 per share, reflecting a significant increase of +254.55% compared to the previous year [6]. - For the full year, the earnings estimate stands at $1.82 per share, indicating a change of +109.2% from the prior year [7]. Zacks Rank and Performance - First Western currently holds a Zacks Rank 1 (Strong Buy), supported by strong agreement among analysts in revising earnings estimates upward [3][8]. - Stocks with a Zacks Rank 1 have historically outperformed, with an average annual return of +25% since 2008 [3]. - The stock has gained 5.3% over the past four weeks, suggesting investor confidence in its earnings growth prospects [9].

Financial Performance - Net income available to common shareholders was $42 million, resulting in diluted earnings per share of $043[8] - Net interest income increased to $175 million, compared to $169 million in the prior quarter, a 36% improvement[8, 42] - Gross revenue increased by 34% from the prior quarter[37] - Tangible book value per share increased by 16% to $2318[14] Loan Portfolio - New loan production in 1Q25 reached $708 million, with a focus on relationship-based lending[23] - The average rate on new loan production was 689%, higher than the average rate of loans paying off[23] - Total loans held for investment remained relatively flat compared to the prior quarter[23] Deposits and Assets Under Management - Total deposits increased by 04% from $251 billion in 4Q24 to $252 billion in 1Q25[28] - Noninterest-bearing deposits increased by 90% from $376 million in 4Q24 to $410 million in 1Q25[28] - Total assets under management decreased by 20% during the quarter to $718 billion[33] Asset Quality and Expenses - Non-performing assets decreased by $318 million to $171 million due to the sale of two OREO properties[57] - The efficiency ratio improved from 8074% in 4Q24 to 7916% in 1Q25, a 452% improvement from 1Q24[52]

Financial Data and Key Metrics Changes - The company generated net income of $4.2 million or $0.43 per diluted share in Q1 2025, representing substantial increases from the prior quarter [11] - Tangible book value per share increased by 1.6% this quarter [12] - Gross revenue increased by 3.4% from the prior quarter, driven by increases in both net interest income and non-interest income [19] Business Line Data and Key Metrics Changes - New loan production was $71 million in Q1 2025, offset by $72 million in loan payoffs, resulting in a slight decrease in total loans [14] - The average rate on new loan production was 6.89%, higher than the average rate on loan payoffs, contributing positively to the loan portfolio's yield [15] - Total deposits were up slightly from the end of the prior quarter, with inflows of non-interest bearing deposits from existing clients and new relationships [16] Market Data and Key Metrics Changes - The company saw a $144 million decrease in assets under management (AUM) in Q1 2025, primarily due to net withdrawals in fixed fee accounts [18] - AUM increased nearly 1% over the past year despite the quarterly decrease [18] Company Strategy and Development Direction - The company is focused on improving profitability and asset quality, with a disciplined approach to loan production and pricing [9][28] - There is a priority on growing the trust investment management business, with new leadership added to enhance contributions to future growth [30][80] - The company plans to redeploy cash from the sale of OREO properties into interest-earning assets to support loan production [29] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about continued positive trends in asset quality, net interest margin, and overall efficiencies [28] - There is caution regarding potential impacts on loan demand due to macroeconomic uncertainties, including tariffs [30] - The company aims to achieve a return on assets (ROA) target of 1% as it continues to grow and improve profitability [61] Other Important Information - The company successfully resolved two largest OREO properties, resulting in a net gain [10] - Non-interest expense decreased by $1 million from the prior quarter, primarily due to a write-down recorded in the previous quarter [23] Q&A Session Summary Question: Can you isolate any interest recoveries on a dollar basis? - The company saw a higher amortized loan fee through the quarter, approximately $200,000 higher than typical [37][39] Question: What is the spot rate on deposits at the end of March? - The spot rate was 2.98%, with a cost of funds around 3.05% [41] Question: What is the outlook for loan payoffs going forward? - Historically, payoffs have been consistent at about $100 million per quarter, with expectations for similar trends moving forward [67] Question: How quickly do you expect new hires to impact the bottom line? - It typically takes time for new hires to settle in, but a positive impact is expected over the next two to three quarters [100]

Financial Data and Key Metrics Changes - The company generated net income of $4,200,000 or $0.43 per diluted share in the quarter, representing substantial increases from the prior quarter [9] - Tangible book value per share increased by 1.6% this quarter [9] - Gross revenue increased by 3.4% from the prior quarter, driven by increases in both net interest income and noninterest income [14] Business Line Data and Key Metrics Changes - New loan production was $71,000,000 in the first quarter, offset by $72,000,000 in loan payoffs, resulting in a slight decrease in total loans [11] - The average rate on new loan production was 6.89%, higher than the average rate on loan payoffs, contributing positively to the loan portfolio yield [11] - Total deposits were up slightly from the end of the prior quarter, with inflows of noninterest bearing deposits from existing clients and new relationships [12] Market Data and Key Metrics Changes - The company saw a $144,000,000 decrease in assets under management in the first quarter, primarily due to net withdrawals in fixed fee accounts [13] - The company maintained a conservative approach to new loan production, focusing on disciplined underwriting and pricing criteria [6] Company Strategy and Development Direction - The company aims to grow its Trust Investment Management business, having added a new Head of Wealth Planning from Goldman Sachs [21] - The management is focused on improving profitability and operational efficiency, with expectations for continued positive trends in asset quality and net interest margin [20] Management Comments on Operating Environment and Future Outlook - Management expressed that while profitability is improving, they are not satisfied with the current performance level and are focused on further enhancements [20] - There is uncertainty regarding the macroeconomic outlook, which could impact loan demand later in the year [20] Other Important Information - The company successfully resolved its two largest OREO properties, resulting in a net gain [9] - Noninterest expense decreased by $1,000,000 from the prior quarter, primarily due to a write-down recorded in the previous quarter [17] Q&A Session Summary Question: Can you isolate any interest recoveries on a dollar basis? - Management noted that there was a $200,000 increase in amortized loan fees that contributed to the uptick in loan yields [26][27] Question: What is the spot rate on deposits and average margin in March? - The spot cost of deposits was 2.98%, and the cost of funds was approximately 3.05% [29] Question: What is the outlook for nonperforming loans? - Management expects to sell one remaining OREO property this year and anticipates collecting on a substantial nonperforming loan through collateral sale [31][32] Question: Will there be a significant increase in expenses due to new hires? - Management indicated that while expenses are expected to remain flat, new hires may take time to become accretive to the bottom line [73] Question: What is the target for return on assets (ROA)? - The target is to return to a 1% ROA, with expectations for improved profitability as the company grows [42][43]

Financial Data and Key Metrics Changes - The company generated net income of $4,200,000 or $0.43 per diluted share in the quarter, representing substantial increases from the prior quarter [8] - Tangible book value per share increased by 1.6% this quarter [8] - Gross revenue increased by 3.4% from the prior quarter, driven by increases in both net interest income and noninterest income [13] Business Line Data and Key Metrics Changes - New loan production was $71,000,000 in the first quarter, offset by $72,000,000 in loan payoffs, resulting in a slight decrease in total loans [10] - The average rate on new loan production was 6.89%, higher than the average rate on loan payoffs, contributing positively to the loan portfolio's yield [10] - Total deposits were up slightly from the end of the prior quarter, with inflows of noninterest bearing deposits from existing clients and new relationships [11] Market Data and Key Metrics Changes - The company saw a $144,000,000 decrease in assets under management in the first quarter, primarily due to net withdrawals in fixed fee accounts [12] - The company continues to experience strong demand for commercial real estate loans as borrowers seek to take advantage of lower property valuations [10] Company Strategy and Development Direction - The company is focused on growing its Trust Investment Management business and has added a new Head of Wealth Planning from Goldman Sachs to enhance this area [20] - The management anticipates continued positive trends in asset quality, net interest margin, and overall efficiencies as processes improve throughout the organization [19] Management Comments on Operating Environment and Future Outlook - Management expressed that while profitability has improved, they are not satisfied with the current performance level and aim to achieve a return on assets (ROA) of 1% [40] - There is uncertainty regarding the macroeconomic outlook, which could impact loan demand later in the year [20] - The company expects to see continued growth in net interest income due to a reduction in the cost of funds and redeployment of cash from the sale of OREO properties [15] Other Important Information - The company successfully resolved its two largest OREO properties, selling them for a net gain [8] - Noninterest expense decreased by $1,000,000 from the prior quarter, primarily due to a write-down recorded in the previous quarter [16] Q&A Session Summary Question: Can you isolate any interest recoveries on a dollar basis? - Management noted that there was a $200,000 increase in amortized loan fees that contributed to the uptick in loan yields [24][25] Question: What is the spot rate on deposits and average margin in March? - The cost of deposits was 2.98%, and the cost of funds was approximately 3.05% [28] Question: What is the outlook for nonperforming loans? - Management expects to sell one remaining OREO property this year and is working through the resolution of a substantial nonperforming loan [30][31] Question: Will there be a significant increase in expenses due to new hires? - Management indicated that while expenses are expected to remain flat, new hires may take time to become accretive to the bottom line [72] Question: How does the origination pipeline relate to new hires? - Management acknowledged that new hires are contributing positively, but the exact impact is difficult to quantify [47] Question: Are there any markets that are softer in terms of loan originations? - Management noted that the front range of Colorado remains healthy, while resort communities and newer markets like Bozeman are performing well [68]

Group 1 - First Western reported quarterly earnings of $0.43 per share, exceeding the Zacks Consensus Estimate of $0.23 per share, and showing an increase from $0.26 per share a year ago, resulting in an earnings surprise of 86.96% [1] - The company posted revenues of $24.8 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.35%, compared to $23.35 million in the same quarter last year [2] - Over the last four quarters, First Western has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4] - First Western shares have declined approximately 6.5% since the beginning of the year, while the S&P 500 has decreased by 8.6% [3] - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $24.71 million, and for the current fiscal year, it is $1.50 on revenues of $102.18 million [7] Group 3 - The Zacks Industry Rank indicates that the Banks - Midwest sector is currently in the top 10% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this category [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for First Western is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6]

Financial Performance - Net income available to common shareholders was $4.2 million, or $0.43 per diluted share, for Q1 2025, compared to $2.7 million, or $0.28 per diluted share, in Q4 2024[3]. - Non-interest income rose to $7.3 million in Q1 2025, a 12.3% increase from $6.5 million in Q4 2024, primarily due to gains on other real estate owned and mortgage loans[12]. - Total interest and dividend income for the three months ended March 31, 2025, was $37,209,000, compared to $38,109,000 for the previous quarter and $38,398,000 for the same quarter last year[34]. - Net interest income for the three months ended March 31, 2025, was $17,453,000, an increase from $16,908,000 in the previous quarter and $16,070,000 in the same quarter last year[34]. - Basic and diluted earnings per common share for the three months ended March 31, 2025, were both $0.43, up from $0.28 in the previous quarter and $0.26 in the same quarter last year[34]. - The company reported net income available to common shareholders of $4,185 thousand for the three months ended March 31, 2025, compared to $2,748 thousand in the previous quarter[44]. Asset Quality - Non-performing assets decreased to $17.1 million, or 0.59% of total assets, as of March 31, 2025, down from $49.0 million, or 1.68% of total assets, at the end of Q4 2024[23]. - Non-performing loans decreased to $12,758 thousand, down from $13,052 thousand as of December 31, 2024, indicating an improvement in asset quality[42]. - The allowance for credit losses to total loans ratio was 0.74% as of March 31, 2025, slightly down from 0.76% as of December 31, 2024[42]. Capital and Efficiency - The Tier 1 capital to risk-weighted assets ratio was 10.35% as of March 31, 2025, indicating strong capital levels[26]. - The efficiency ratio improved to 79.2% in Q1 2025, compared to 80.7% in Q4 2024 and 83.7% in Q1 2024[15]. - The efficiency ratio improved to 79.16% for the three months ended March 31, 2025, compared to 80.74% in the previous quarter[44]. - Return on tangible common equity (annualized) increased to 7.44% for the three months ended March 31, 2025, up from 4.98% in the previous quarter[44]. Deposits and Loans - Total deposits were $2.52 billion as of March 31, 2025, reflecting a 0.4% increase from $2.51 billion as of December 31, 2024[19]. - Total loans held for investment remained flat at $2.43 billion as of March 31, 2025, compared to December 31, 2024[17]. - Total loans held for investment increased to $2,480,196 thousand as of March 31, 2025, up from $2,428,994 thousand as of December 31, 2024, reflecting a growth of 2.1%[38]. - Total deposits reached $2,531,970 thousand as of March 31, 2025, compared to $2,514,209 thousand as of December 31, 2024, representing a slight increase of 0.7%[40]. Book Value - Book value per common share increased 1.3% from $26.10 as of December 31, 2024, to $26.44 as of March 31, 2025[26]. - Tangible book value per common share increased 1.6% from $22.83 as of December 31, 2024, to $23.18 as of March 31, 2025, and increased 4.4% from $22.21 as of March 31, 2024[27]. Other Information - The company expects to continue positive trends and redeploy cash from the sale of OREO properties into interest-earning assets[5]. - The company will host a conference call and webcast on April 25, 2025, at 10:00 a.m. MT/12:00 p.m. ET to discuss the first quarter 2025 results[27]. - The company operates in Colorado, Arizona, Wyoming, California, and Montana, providing a fully integrated suite of wealth management services[29]. - Total assets as of March 31, 2025, were $2,906,300,000, a decrease from $2,919,037,000 as of December 31, 2024, and $2,932,217,000 as of March 31, 2024[36]. - Total non-interest expense for the three months ended March 31, 2025, was $19,361,000, a decrease from $20,427,000 in the previous quarter and an increase from $19,696,000 in the same quarter last year[34]. - Assets under management decreased to $7,176,624 thousand as of March 31, 2025, down from $7,321,147 thousand as of December 31, 2024[42].

First Quarter 2025 Summary Net income available to common shareholders of $4.2 million in Q1 2025, compared to $2.7 million in Q4 2024Diluted earnings per share of $0.43 in Q1 2025, compared to $0.28 in Q4 2024Net interest income of $17.5 million in Q1 2025, compared to $16.9 million in Q4 2024Net interest margin increased 16 basis points from 2.45% in Q4 2024 to 2.61% in Q1 2025Other real estate owned ("OREO") decreased $31.5 million from $35.9 million in Q4 2024 to $4.4 million in Q1 2025 due to the sale ...

DENVER, April 04, 2025 (GLOBE NEWSWIRE) -- First Western Financial, Inc. (NASDAQ: MYFW), a financial services holding company headquartered in Denver, Colorado (“First Western”), announced today that it will release financial results for its first quarter ended March 31, 2025 after the markets close on Thursday, April 24, 2025. Management will hold a conference call at 10:00 a.m. Mountain Time/12:00 p.m. Eastern Time on Friday, April 25, 2025, to discuss First Western’s financial results. Analysts and inves ...