UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 22, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code: 303 .531.8100
Former name or former address, if changed since last report: Not Applicable
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | |||||
| o | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Item 2.02 Results of Operations and Financial Condition.
On January 22, 2026, First Western Financial, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter ended December 31, 2025. A copy of the press release is furnished as Exhibit 99.1 and is incorporated by reference herein.
The information in this Item 2.02, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.
Item 7.01 Regulation FD Disclosure.
The Company intends to hold an investor call and webcast to discuss its financial results for the fourth quarter ended December 31, 2025 on Friday, January 23, 2026, at 10:00 a.m. Mountain Time. The Company’s presentation to analysts and investors contains additional information about the Company’s financial results for the fourth quarter ended December 31, 2025 and is furnished as Exhibit 99.2 and is incorporated by reference herein.
The information in this Item 7.01, including Exhibit 99.2, is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit Number | Description | |||||||
| 99.1 | ||||||||
| 99.2 | ||||||||
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document) | |||||||
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| FIRST WESTERN FINANCIAL, INC. | ||||||||
Date: January 22, 2026 | By: /s/ Scott C. Wylie | |||||||
| Scott C. Wylie | ||||||||
| Chairman, Chief Executive Officer and President | ||||||||
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Exhibit 99.1
First Western Reports Fourth Quarter 2025 Financial Results
Fourth Quarter 2025 Summary
•Net income available to common shareholders of $3.3 million in Q4 2025, compared to $3.2 million in Q3 2025
•Diluted earnings per share of $0.34 in Q4 2025, compared to $0.32 in Q3 2025
•Net interest margin increased 17 basis points from 2.54% in Q3 2025 to 2.71% in Q4 2025
•Net interest income increased $1.1 million, or 5.6%, from $19.5 million in Q3 2025 to $20.6 million in Q4 2025
•Total loans held for investment increased $59 million, or 2.3%, from $2.59 billion in Q3 2025 to $2.65 billion in Q4 2025
Denver, Colo., January 22, 2026 – First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the fourth quarter ended December 31, 2025.
Net income available to common shareholders was $3.3 million, or $0.34 per diluted share, for the fourth quarter of 2025. This compares to net income of $3.2 million, or $0.32 per diluted share, for the third quarter of 2025, and net income of $2.7 million, or $0.28 per diluted share, for the fourth quarter of 2024.
Scott C. Wylie, CEO of First Western, commented, “We executed well in the fourth quarter and saw positive trends in many areas including loan growth, an increase in Net interest income, well managed expenses, and generally stable asset quality, which resulted in an increase in our level of profitability. We continue to see healthy economic conditions across our markets resulting in a solid amount of loan demand that meets our disciplined underwriting and pricing criteria, while adding full banking relationships by getting new deposit accounts with the loans. Our improving financial performance and continued prudent balance sheet management resulted in increases in both our book value and tangible book value per share during the fourth quarter.
“Our loan pipeline remains strong and we expect to see solid loan growth going forward, along with a continuation of the positive trends we are seeing in key areas, which we believe will result in another year of improved financial performance and value creation for our shareholders in 2026,” said Mr. Wylie.
For the Three Months Ended | |||||||||||||||||
| December 31, | September 30, | December 31, | |||||||||||||||
| (Dollars in thousands, except per share data) | 2025 | 2025 | 2024 | ||||||||||||||
| Earnings Summary | |||||||||||||||||
| Net interest income | $ | 20,577 | $ | 19,454 | $ | 16,908 | |||||||||||
| Provision for (release of) of credit losses | 915 | 2,257 | (974) | ||||||||||||||
| Total non-interest income | 6,079 | 6,842 | 6,459 | ||||||||||||||
| Total non-interest expense | 21,306 | 20,074 | 20,427 | ||||||||||||||
| Income before income taxes | 4,435 | 3,965 | 3,914 | ||||||||||||||
Income tax expense | 1,121 | 779 | 1,166 | ||||||||||||||
| Net income available to common shareholders | 3,314 | 3,186 | 2,748 | ||||||||||||||
| Basic earnings per common share | 0.34 | 0.33 | 0.28 | ||||||||||||||
| Diluted earnings per common share | 0.34 | 0.32 | 0.28 | ||||||||||||||
| Return on average assets (annualized) | 0.42 | % | 0.40 | % | 0.38 | % | |||||||||||
| Return on average shareholders' equity (annualized) | 5.06 | 4.92 | 4.39 | ||||||||||||||
Return on tangible common equity (annualized)(1) | 5.66 | 5.54 | 4.98 | ||||||||||||||
| Net interest margin | 2.71 | 2.54 | 2.45 | ||||||||||||||
Efficiency ratio(1) | 74.88 | 76.38 | 80.74 | ||||||||||||||
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Operating Results for the Fourth Quarter 2025
Revenue
Total income before non-interest expense was $25.7 million for the fourth quarter of 2025, an increase of 7.1% from $24.0 million for the third quarter of 2025. Gross revenue(1) was $26.7 million for the fourth quarter of 2025, an increase of 1.5% from $26.3 million for the third quarter of 2025. Relative to the third quarter of 2025, the increase in Total income before non-interest expense was primarily driven by an increase in Net interest income and a decrease in Provision for credit losses, partially offset by a decrease in Non-interest income. Relative to the fourth quarter of 2024, Total income before non-interest expense increased 5.8% from $24.3 million and Gross revenue increased 12.2% from $23.8 million. Relative to the fourth quarter of 2024, the increase in Total income before non-interest expense was primarily driven by an increase in Net interest income, partially offset by an increase in Provision for credit losses and a decrease in Non-interest income.
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Net Interest Margin
Net interest margin for the fourth quarter of 2025 increased 17 basis points to 2.71% from 2.54% reported in the third quarter of 2025, primarily due to a decrease in cost of funds, partially offset by a slight decrease in yield on interest-earning assets. The cost of funds decreased 20 basis points to 3.03% from 3.23% reported in the third quarter of 2025, while the yield on interest-earning assets decreased 3 basis points to 5.56% from 5.59% reported in the third quarter of 2025.
Relative to the fourth quarter of 2024, net interest margin increased 26 basis points from 2.45%, primarily due to a 21 basis point decrease in cost of funds and a 3 basis points increase in yield on interest-earning assets.
2
Net Interest Income
Net interest income for the fourth quarter of 2025 was $20.6 million, an increase of 5.6% from $19.5 million for the third quarter of 2025. The increase quarter over quarter was primarily driven by a 17 basis point increase in net interest margin. Relative to the fourth quarter of 2024, Net interest income increased 21.9% from $16.9 million. The increase compared to the fourth quarter of 2024 was primarily driven by a 26 basis point increase in net interest margin and a $276 million, or 10.0%, increase in average interest-earning assets.
Non-interest Income
Non-interest income for the fourth quarter of 2025 was $6.1 million, a decrease of 10.3% from $6.8 million in the third quarter of 2025. The decrease was primarily driven by decreases in Net gain on mortgage loans and Risk management and insurance fees.
Relative to the fourth quarter of 2024, Non-interest income decreased $0.4 million, primarily driven by a decrease in Risk management and insurance fees, partially offset by an increase in Net gain on mortgage loans and a decrease in Net loss on loans held for sale.
Non-interest Expense
Non-interest expense for the fourth quarter of 2025 was $21.3 million, an increase of 6.0% from $20.1 million in the third quarter of 2025. The increase was primarily driven by a $1.4 million Other real estate owned ("OREO") write-down and an increase in Professional services, partially offset by decreases in Occupancy and equipment and Salaries and employee benefits.
Relative to the fourth quarter of 2024, Non-interest expense increased 4.4% from $20.4 million, primarily driven by increases in Salaries and employee benefits, Professional Services, and Data processing, partially offset by a decrease in Occupancy and equipment.
The Company’s efficiency ratio(1) was 74.9% in the fourth quarter of 2025, compared with 76.4% in the third quarter of 2025 and 80.7% in the fourth quarter of 2024.
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Income Taxes
The Company recorded Income tax expense of $1.1 million for the fourth quarter of 2025, compared to $0.8 million for the third quarter of 2025, and $1.2 million for the fourth quarter of 2024.
Loans
Total loans held for investment were $2.65 billion as of December 31, 2025, an increase of $59 million or 2.3% compared to September 30, 2025. Changes in the quarter included growth in the Non-owner occupied and Owner occupied commercial real estate portfolios, partially offset by a decrease in the Construction and development portfolio. Relative to the fourth quarter of 2024, total loans held for investment increased from $2.43 billion as of December 31, 2024, primarily driven by growth in the Non-owner occupied commercial real estate, 1-4 family residential, Cash, securities, and other, and Owner occupied commercial real estate portfolios, partially offset by a decrease in the Construction and development portfolio.
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Deposits
Total deposits were $2.75 billion as of December 31, 2025, a decrease of 3.5% from $2.85 billion as of September 30, 2025. The decrease was primarily driven by decreases in higher-cost money market deposit accounts and Noninterest-bearing deposit accounts primarily due to operating account fluctuations. Relative to the fourth quarter of 2024, Total deposits increased from $2.51 billion as of December 31, 2024, primarily driven by an increase in money market deposit accounts, partially offset by decreases in time deposit accounts and Noninterest-bearing deposit accounts.
Borrowings
Federal Home Loan Bank (“FHLB”) and Federal Reserve borrowings were a combined $62.8 million as of December 31, 2025, an increase of $11.9 million from $50.9 million as of September 30, 2025. The change when compared to September 30, 2025 was primarily driven by an increase in FHLB borrowings due to loan growth and a decrease in deposits during the quarter. Relative to the fourth quarter of 2024, borrowings increased $5.8 million from $57.0 million as of December 31, 2024. The increase in borrowings from December 31, 2024 was primarily driven by an increase in FHLB borrowings to support the interest-earning asset growth.
Subordinated notes were $44.8 million as of December 31, 2025, compared to $44.7 million as of September 30, 2025. Subordinated notes decreased $7.8 million from $52.6 million as of December 31, 2024. Relative to the fourth quarter of 2024, the decrease was primarily due to the redemption of $8.0 million of subordinated notes that became eligible to call in the first quarter of 2025.
Assets Under Management
Assets Under Management (“AUM”) was $7.28 billion as of December 31, 2025, a decrease of $155 million, or 2.1%, from $7.43 billion as of September 30, 2025. The decrease in AUM during the quarter was primarily attributable to net withdrawals. Compared to December 31, 2024, total AUM decreased 0.5% from $7.32 billion.
Credit Quality
Non-performing assets totaled $19.6 million, or 0.62% of Total assets, as of December 31, 2025, compared to $22.7 million, or 0.70% of Total assets, as of September 30, 2025. The decrease in non-performing assets during the quarter was primarily driven by a write-down of OREO, pay downs, and a charge-off. As of December 31, 2024, non-performing assets totaled $49.0 million, or 1.68% of Total assets. Relative to the fourth quarter of 2024, the decrease in non-performing assets was primarily driven by the sale of two OREO properties, a write-down of OREO, pay downs, and a charge-off, partially offset by additions to non-accrual loans. OREO totaled $3.0 million as of December 31, 2025, a decrease of $1.4 million from $4.4 million as of September 30, 2025 due to a write-down during the quarter. Relative to the fourth quarter of 2024, OREO decreased from $35.9 million as of December 31, 2024.
Non-accrual loans totaled $16.6 million as of December 31, 2025, a decrease of $1.7 million from $18.3 million as of September 30, 2025. As of December 31, 2024, non-accrual loans totaled $13.1 million. Relative to the third quarter of 2025, the decrease was primarily driven by pay downs and a charge-off. Relative to the fourth quarter of 2024, the increase was primarily driven by the addition of one credit relationship, partially offset by pay downs and a charge-off.
During the fourth quarter of 2025, the Company recorded provision expense of $0.9 million, compared to $2.3 million in the third quarter of 2025 and a provision release of $1.0 million in the fourth quarter of 2024. As of December 31, 2025 and September 30, 2025, the Allowance for credit losses as a percentage of Total loans was 81 basis points.
4
Capital
As of December 31, 2025, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of December 31, 2025, the Bank was classified as “well capitalized,” as summarized in the following table:
| December 31, | |||||
| 2025 | |||||
| Consolidated Capital | |||||
| Tier 1 capital to risk-weighted assets | 9.75 | % | |||
| Common Equity Tier 1 ("CET1") to risk-weighted assets | 9.75 | ||||
| Total capital to risk-weighted assets | 12.34 | ||||
| Tier 1 capital to average assets | 7.68 | ||||
| Bank Capital | |||||
| Tier 1 capital to risk-weighted assets | 11.15 | % | |||
| CET1 to risk-weighted assets | 11.15 | ||||
| Total capital to risk-weighted assets | 11.99 | ||||
| Tier 1 capital to average assets | 8.79 | ||||
Book value per common share increased 1.4% from $26.92 as of September 30, 2025 to $27.30 as of December 31, 2025. Book value per common share increased 4.6% from $26.10 as of December 31, 2024.
Tangible book value per common share(1) increased 1.6% from $23.68 as of September 30, 2025, to $24.07 as of December 31, 2025. Tangible book value per common share increased 5.4% from $22.83 as of December 31, 2024.
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Conference Call, Webcast and Slide Presentation
The Company will host a conference call and webcast at 10:00 a.m. MT/ 12:00 p.m. ET on Friday, January 23, 2026. Telephone access: https://register-conf.media-server.com/register/BI97c1bab5cd874d858746f83b76919a8d
A slide presentation relating to the fourth quarter 2025 results will be accessible prior to the scheduled conference call. The slide presentation and webcast of the conference call can be accessed on the Events and Presentations page of the Company’s investor relations website at https://myfw.gcs-web.com.
About First Western
First Western is a financial services holding company headquartered in Denver, Colorado, with operations in Colorado, Arizona, Wyoming, California, and Montana. First Western and its subsidiaries provide a fully integrated suite of wealth management services on a private trust bank platform, which includes a comprehensive selection of deposit, loan, trust, wealth planning and investment management products and services. First Western’s common stock is traded on the Nasdaq Global Select Market under the symbol “MYFW.” For more information, please visit www.myfw.com.
5
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include “Tangible Common Equity,” “Tangible Common Book Value per Share,” “Return on Tangible Common Equity,” “Efficiency Ratio,” and “Gross Revenue”. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies. Reconciliation of non-GAAP financial measures to GAAP financial measures are provided at the end of this press release.
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Forward-Looking Statements
Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “position,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “opportunity,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Those risks and uncertainties include, without limitation, the risk of geographic concentration in Colorado, Arizona, Wyoming, California, and Montana; the risk of changes in the economy affecting real estate values and liquidity; the risk in our ability to continue to originate residential real estate loans and sell such loans; risks specific to commercial loans and borrowers; the risk of claims and litigation pertaining to our fiduciary responsibilities; the risk of changes in interest rates could reduce our net interest margins and Net interest income; increased credit risk, including as a result of deterioration in economic conditions, could require us to increase our allowance for credit losses and could have a material adverse effect on our results of operations and financial condition; the risk in our ability to maintain a strong core deposit base or other low-cost funding sources. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 7, 2025 (“Form 10-K”), and other documents we file with the SEC from time to time. We urge readers of this news release to review the “Risk Factors” section our Form 10-K and any updates to those risk factors set forth in our subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and our other filings with the SEC. Also, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today’s date, or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Contacts:
Financial Profiles, Inc.
Tony Rossi
310-622-8221
MYFW@finprofiles.com
IR@myfw.com
7
First Western Financial, Inc.
Condensed Consolidated Statements of Income (unaudited)
| Three Months Ended | |||||||||||||||||
| December 31, | September 30, | December 31, | |||||||||||||||
| (dollars in thousands, except per share amounts) | 2025 | 2025 | 2024 | ||||||||||||||
| Interest and dividend income: | |||||||||||||||||
| Loans, including fees | $ | 38,563 | $ | 37,701 | $ | 34,264 | |||||||||||
| Loans accounted for under the fair value option | 51 | 64 | 118 | ||||||||||||||
Investment securities | 1,593 | 1,387 | 696 | ||||||||||||||
| Interest-bearing deposits in other financial institutions | 1,958 | 3,468 | 2,902 | ||||||||||||||
| Dividends, restricted stock | 139 | 154 | 129 | ||||||||||||||
| Total interest and dividend income | 42,304 | 42,774 | 38,109 | ||||||||||||||
| Interest expense: | |||||||||||||||||
| Deposits | 20,560 | 22,177 | 19,921 | ||||||||||||||
| Other borrowed funds | 1,167 | 1,143 | 1,280 | ||||||||||||||
| Total interest expense | 21,727 | 23,320 | 21,201 | ||||||||||||||
| Net interest income | 20,577 | 19,454 | 16,908 | ||||||||||||||
| Less: Provision for (release of) of credit losses | 915 | 2,257 | (974) | ||||||||||||||
Net interest income, after provision for credit losses | 19,662 | 17,197 | 17,882 | ||||||||||||||
| Non-interest income: | |||||||||||||||||
| Trust and investment management fees | 4,634 | 4,629 | 4,660 | ||||||||||||||
| Net gain on mortgage loans | 795 | 1,394 | 377 | ||||||||||||||
| Net loss on loans held for sale | — | — | (222) | ||||||||||||||
| Bank fees | 318 | 312 | 426 | ||||||||||||||
| Risk management and insurance fees | 52 | 193 | 1,139 | ||||||||||||||
| Income on company-owned life insurance | 117 | 116 | 112 | ||||||||||||||
| Net (loss) gain on loans accounted for under the fair value option | (44) | 18 | (149) | ||||||||||||||
| Unrealized (loss) gain recognized on equity securities | (6) | 6 | (49) | ||||||||||||||
| Other | 213 | 174 | 165 | ||||||||||||||
| Total non-interest income | 6,079 | 6,842 | 6,459 | ||||||||||||||
| Total income before non-interest expense | 25,741 | 24,039 | 24,341 | ||||||||||||||
| Non-interest expense: | |||||||||||||||||
| Salaries and employee benefits | 11,735 | 11,884 | 11,237 | ||||||||||||||
| Occupancy and equipment | 1,710 | 2,084 | 2,100 | ||||||||||||||
| Professional services | 2,232 | 1,894 | 1,821 | ||||||||||||||
| Technology and information systems | 1,094 | 1,055 | 1,073 | ||||||||||||||
| Data processing | 1,251 | 1,251 | 1,029 | ||||||||||||||
| Marketing | 386 | 351 | 397 | ||||||||||||||
| Amortization of other intangible assets | 52 | 51 | 56 | ||||||||||||||
| Other | 2,846 | 1,504 | 2,714 | ||||||||||||||
| Total non-interest expense | 21,306 | 20,074 | 20,427 | ||||||||||||||
| Income before income taxes | 4,435 | 3,965 | 3,914 | ||||||||||||||
Income tax expense | 1,121 | 779 | 1,166 | ||||||||||||||
| Net income available to common shareholders | $ | 3,314 | $ | 3,186 | $ | 2,748 | |||||||||||
| Earnings per common share: | |||||||||||||||||
| Basic | $ | 0.34 | $ | 0.33 | $ | 0.28 | |||||||||||
| Diluted | 0.34 | 0.32 | 0.28 | ||||||||||||||
8
First Western Financial, Inc.
Condensed Consolidated Balance Sheets (unaudited)
| December 31, | September 30, | December 31, | |||||||||||||||
| (dollars in thousands) | 2025 | 2025 | 2024 | ||||||||||||||
| Assets | |||||||||||||||||
| Cash and cash equivalents: | |||||||||||||||||
| Cash and due from banks | $ | 9,755 | $ | 13,889 | $ | 9,770 | |||||||||||
| Interest-bearing deposits in other financial institutions | 190,526 | 341,750 | 228,171 | ||||||||||||||
| Total cash and cash equivalents | 200,281 | 355,639 | 237,941 | ||||||||||||||
Available-for-sale debt securities, at fair value (amortized cost of $45,623, $49,407, and $0, respectively) | 45,607 | 49,177 | — | ||||||||||||||
Held-to-maturity debt securities (fair value of $90,635, $93,589 and $68,161, respectively), net of allowance for credit losses of $74, $71, and $71, respectively | 94,970 | 98,205 | 75,724 | ||||||||||||||
| Correspondent bank stock, at cost | 6,764 | 6,481 | 5,864 | ||||||||||||||
| Mortgage loans held for sale, at fair value | 40,176 | 21,806 | 25,455 | ||||||||||||||
| Loans held for sale, at fair value | — | — | 251 | ||||||||||||||
Loans (includes $3,182, $4,208, and $7,283 measured at fair value, respectively) | 2,650,423 | 2,590,846 | 2,425,565 | ||||||||||||||
| Allowance for credit losses | (21,441) | (20,967) | (18,330) | ||||||||||||||
| Loans, net | 2,628,982 | 2,569,879 | 2,407,235 | ||||||||||||||
| Premises and equipment, net | 25,687 | 24,963 | 24,129 | ||||||||||||||
| Accrued interest receivable | 11,209 | 11,907 | 10,364 | ||||||||||||||
| Accounts receivable | 4,579 | 4,687 | 4,763 | ||||||||||||||
| Other receivables | 2,444 | 3,736 | 5,710 | ||||||||||||||
| Other real estate owned, net | 3,040 | 4,389 | 35,929 | ||||||||||||||
| Goodwill and other intangible assets, net | 31,422 | 31,473 | 31,627 | ||||||||||||||
| Deferred tax assets, net | 4,003 | 3,500 | 3,079 | ||||||||||||||
| Company-owned life insurance | 17,416 | 17,299 | 16,961 | ||||||||||||||
| Other assets | 38,401 | 37,283 | 34,005 | ||||||||||||||
| Total assets | $ | 3,154,981 | $ | 3,240,424 | $ | 2,919,037 | |||||||||||
| Liabilities | |||||||||||||||||
| Deposits: | |||||||||||||||||
| Noninterest-bearing | $ | 344,969 | $ | 375,708 | $ | 375,603 | |||||||||||
| Interest-bearing | 2,401,606 | 2,473,203 | 2,138,606 | ||||||||||||||
| Total deposits | 2,746,575 | 2,848,911 | 2,514,209 | ||||||||||||||
| Borrowings: | |||||||||||||||||
| Federal Home Loan Bank and Federal Reserve borrowings | 62,841 | 50,867 | 57,038 | ||||||||||||||
| Subordinated notes | 44,772 | 44,724 | 52,565 | ||||||||||||||
| Accrued interest payable | 1,295 | 1,689 | 1,995 | ||||||||||||||
| Other liabilities | 33,938 | 32,738 | 40,908 | ||||||||||||||
| Total liabilities | 2,889,421 | 2,978,929 | 2,666,715 | ||||||||||||||
| Shareholders’ Equity | |||||||||||||||||
| Total shareholders’ equity | 265,560 | 261,495 | 252,322 | ||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,154,981 | $ | 3,240,424 | $ | 2,919,037 | |||||||||||
9
First Western Financial, Inc.
Consolidated Financial Summary (unaudited)
| December 31, | September 30, | December 31, | |||||||||||||||
| (dollars in thousands) | 2025 | 2025 | 2024 | ||||||||||||||
| Loan Portfolio | |||||||||||||||||
| Cash, securities, and other | $ | 164,787 | $ | 159,204 | $ | 120,005 | |||||||||||
| Consumer and other | 19,504 | 12,254 | 17,333 | ||||||||||||||
| Construction and development | 189,790 | 230,600 | 315,686 | ||||||||||||||
| 1-4 family residential | 1,030,211 | 1,041,075 | 960,354 | ||||||||||||||
| Non-owner occupied CRE | 813,408 | 728,039 | 614,384 | ||||||||||||||
| Owner occupied CRE | 205,063 | 191,239 | 173,223 | ||||||||||||||
| Commercial and industrial | 226,107 | 225,919 | 220,501 | ||||||||||||||
| Total | 2,648,870 | 2,588,330 | 2,421,486 | ||||||||||||||
| Loans accounted for under the fair value option | 3,216 | 4,319 | 7,508 | ||||||||||||||
| Total loans held for investment | 2,652,086 | 2,592,649 | 2,428,994 | ||||||||||||||
Deferred fees, unamortized premiums, basis adjustments, net(1)(2) | (1,663) | (1,803) | (3,429) | ||||||||||||||
Loans (includes $3,182, $4,208, and $7,283 measured at fair value, respectively) | $ | 2,650,423 | $ | 2,590,846 | $ | 2,425,565 | |||||||||||
| Mortgage loans held for sale | 40,176 | 21,806 | 25,455 | ||||||||||||||
| Loans held for sale | — | — | 251 | ||||||||||||||
| Deposit Portfolio | |||||||||||||||||
| Money market deposit accounts | $ | 1,913,591 | $ | 1,988,336 | $ | 1,513,605 | |||||||||||
| Time deposits | 352,473 | 349,533 | 471,415 | ||||||||||||||
| Interest checking accounts | 122,292 | 121,901 | 139,374 | ||||||||||||||
| Savings accounts | 13,250 | 13,433 | 14,212 | ||||||||||||||
| Total interest-bearing deposits | 2,401,606 | 2,473,203 | 2,138,606 | ||||||||||||||
| Noninterest-bearing accounts | 344,969 | 375,708 | 375,603 | ||||||||||||||
| Total deposits | $ | 2,746,575 | $ | 2,848,911 | $ | 2,514,209 | |||||||||||
____________________
(1) Includes fair value adjustments on loans held for investment accounted for under the fair value option.
(2) Includes basis adjustments related to the hedged portfolio accounted for under the portfolio layer method.
10
First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
| As of or for the Three Months Ended | |||||||||||||||||
| December 31, | September 30, | December 31, | |||||||||||||||
| (dollars in thousands) | 2025 | 2025 | 2024 | ||||||||||||||
| Average Balance Sheets | |||||||||||||||||
| Assets | |||||||||||||||||
| Interest-earning assets: | |||||||||||||||||
| Interest-bearing deposits in other financial institutions | $ | 192,052 | $ | 307,979 | $ | 238,052 | |||||||||||
| Debt securities | 143,593 | 127,154 | 77,464 | ||||||||||||||
| Correspondent bank stock | 6,342 | 7,500 | 5,738 | ||||||||||||||
Gross loans | 2,630,739 | 2,562,960 | 2,386,070 | ||||||||||||||
| Mortgage loans held for sale | 41,068 | 26,037 | 26,623 | ||||||||||||||
| Loans held at fair value | 3,799 | 4,809 | 8,136 | ||||||||||||||
| Total interest-earning assets | 3,017,593 | 3,036,439 | 2,742,083 | ||||||||||||||
| Noninterest-earning assets | 123,497 | 124,457 | 159,883 | ||||||||||||||
| Total assets | $ | 3,141,090 | $ | 3,160,896 | $ | 2,901,966 | |||||||||||
| Liabilities and Shareholders’ Equity | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||
| Interest-bearing deposits | $ | 2,387,894 | $ | 2,422,177 | $ | 2,095,204 | |||||||||||
| FHLB and Federal Reserve borrowings | 50,799 | 51,065 | 54,428 | ||||||||||||||
| Subordinated notes | 44,742 | 44,690 | 52,528 | ||||||||||||||
| Total interest-bearing liabilities | 2,483,435 | 2,517,932 | 2,202,160 | ||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||
| Noninterest-bearing deposits | 359,223 | 349,839 | 403,433 | ||||||||||||||
| Other liabilities | 36,415 | 34,072 | 45,889 | ||||||||||||||
| Total noninterest-bearing liabilities | 395,638 | 383,911 | 449,322 | ||||||||||||||
| Total shareholders’ equity | 262,017 | 259,053 | 250,484 | ||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,141,090 | $ | 3,160,896 | $ | 2,901,966 | |||||||||||
| Yields/Cost of funds (annualized) | |||||||||||||||||
| Interest-bearing deposits in other financial institutions | 4.04 | % | 4.47 | % | 4.85 | % | |||||||||||
| Debt securities | 4.40 | 4.33 | 3.57 | ||||||||||||||
| Correspondent bank stock | 8.70 | 8.15 | 8.94 | ||||||||||||||
| Loans | 5.72 | 5.78 | 5.65 | ||||||||||||||
| Loan held at fair value | 5.33 | 5.28 | 5.77 | ||||||||||||||
| Mortgage loans held for sale | 5.94 | 5.59 | 6.02 | ||||||||||||||
| Total interest-earning assets | 5.56 | 5.59 | 5.53 | ||||||||||||||
| Interest-bearing deposits | 3.42 | 3.63 | 3.78 | ||||||||||||||
| Total deposits | 2.97 | 3.17 | 3.17 | ||||||||||||||
| FHLB and Federal Reserve borrowings | 3.99 | 3.98 | 3.96 | ||||||||||||||
| Subordinated notes | 5.82 | 5.60 | 5.59 | ||||||||||||||
| Total interest-bearing liabilities | 3.47 | 3.67 | 3.83 | ||||||||||||||
| Net interest margin | 2.71 | 2.54 | 2.45 | ||||||||||||||
| Net interest rate spread | 2.09 | 1.92 | 1.70 | ||||||||||||||
11
First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
| As of or for the Three Months Ended | |||||||||||||||||
| December 31, | September 30, | December 31, | |||||||||||||||
| (dollars in thousands, except share and per share amounts) | 2025 | 2025 | 2024 | ||||||||||||||
| Asset Quality | |||||||||||||||||
| Non-accrual loans | $ | 16,588 | $ | 18,293 | $ | 13,052 | |||||||||||
| Non-performing assets | 19,628 | 22,682 | 48,981 | ||||||||||||||
| Net charge-offs (recoveries) | 401 | 259 | (270) | ||||||||||||||
| Non-accrual loans to total loans | 0.63 | % | 0.71 | % | 0.54 | % | |||||||||||
| Non-performing assets to total assets | 0.62 | 0.70 | 1.68 | ||||||||||||||
| Allowance for credit losses to non-accrual loans | 129.26 | 114.62 | 140.44 | ||||||||||||||
| Allowance for credit losses to total loans | 0.81 | 0.81 | 0.76 | ||||||||||||||
| Net charge-offs (recoveries) to average loans | 0.02 | 0.01 | (0.01) | ||||||||||||||
| Assets Under Management | $ | 7,278,241 | $ | 7,433,029 | $ | 7,321,147 | |||||||||||
| Market Data | |||||||||||||||||
| Book value per share at period end | $ | 27.30 | $ | 26.92 | $ | 26.10 | |||||||||||
Tangible book value per common share(1) | $ | 24.07 | $ | 23.68 | $ | 22.83 | |||||||||||
| Weighted average outstanding shares, basic | 9,719,812 | 9,717,571 | 9,665,621 | ||||||||||||||
| Weighted average outstanding shares, diluted | 9,849,323 | 9,868,742 | 9,794,797 | ||||||||||||||
| Shares outstanding at period end | 9,725,731 | 9,714,711 | 9,667,142 | ||||||||||||||
| Consolidated Capital | |||||||||||||||||
| Tier 1 capital to risk-weighted assets | 9.75 | % | 9.80 | % | 10.07 | % | |||||||||||
| CET1 to risk-weighted assets | 9.75 | 9.80 | 10.07 | ||||||||||||||
| Total capital to risk-weighted assets | 12.34 | 12.50 | 13.12 | ||||||||||||||
| Tier 1 capital to average assets | 7.68 | 7.51 | 7.88 | ||||||||||||||
| Bank Capital | |||||||||||||||||
| Tier 1 capital to risk-weighted assets | 11.15 | % | 11.20 | % | 11.41 | % | |||||||||||
| CET1 to risk-weighted assets | 11.15 | 11.20 | 11.41 | ||||||||||||||
| Total capital to risk-weighted assets | 11.99 | 12.04 | 12.10 | ||||||||||||||
| Tier 1 capital to average assets | 8.79 | 8.59 | 8.94 | ||||||||||||||
____________________
(1) Represents a Non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
12
First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
Reconciliations of Non-GAAP Financial Measures
| As of or for the Three Months Ended | |||||||||||||||||
| December 31, | September 30, | December 31, | |||||||||||||||
| (dollars in thousands, except share and per share amounts) | 2025 | 2025 | 2024 | ||||||||||||||
| Tangible Common | |||||||||||||||||
| Total shareholders' equity | $ | 265,560 | $ | 261,495 | $ | 252,322 | |||||||||||
| Less: goodwill and other intangibles, net | 31,422 | 31,473 | 31,627 | ||||||||||||||
| Tangible common equity | $ | 234,138 | $ | 230,022 | $ | 220,695 | |||||||||||
| Common shares outstanding, end of period | 9,725,731 | 9,714,711 | 9,667,142 | ||||||||||||||
| Tangible common book value per share | $ | 24.07 | $ | 23.68 | $ | 22.83 | |||||||||||
| Net income available to common shareholders | 3,314 | 3,186 | 2,748 | ||||||||||||||
| Return on tangible common equity (annualized) | 5.66 | % | 5.54 | % | 4.98 | % | |||||||||||
| Efficiency | |||||||||||||||||
| Non-interest expense | $ | 21,306 | $ | 20,074 | $ | 20,427 | |||||||||||
| Less: OREO expenses and write-downs | 1,310 | 8 | 1,222 | ||||||||||||||
| Adjusted non-interest expense | $ | 19,996 | $ | 20,066 | $ | 19,205 | |||||||||||
| Total income before non-interest expense | $ | 25,741 | $ | 24,039 | $ | 24,341 | |||||||||||
| Less: unrealized (loss) gain recognized on equity securities | (6) | 6 | (49) | ||||||||||||||
| Less: net (loss) gain on loans accounted for under the fair value option | (44) | 18 | (149) | ||||||||||||||
| Less: net loss on loans held for sale | — | — | (222) | ||||||||||||||
| Plus: provision for (release of) of credit losses | 915 | 2,257 | (974) | ||||||||||||||
| Gross revenue | $ | 26,706 | $ | 26,272 | $ | 23,787 | |||||||||||
| Efficiency ratio | 74.88 | % | 76.38 | % | 80.74 | % | |||||||||||
13
Fourth Quarter 2025 Conference Call
Safe Harbor 2 This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the current views of First Western Financial, Inc.’s (“First Western”) management with respect to, among other things, future events and First Western’s financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “position,” “project,” “future” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about First Western’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond First Western’s control. Accordingly, First Western cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although First Western believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. The following risks and uncertainties, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: the risk of geographic concentration in Colorado, Arizona, Wyoming, California, and Montana; the risk of changes in the economy affecting real estate values and liquidity; the risk in our ability to continue to originate residential real estate loans and sell such loans; risks specific to commercial loans and borrowers; the risk of claims and litigation pertaining to our fiduciary responsibilities; the risk of changes in interest rates could reduce our net interest margins and Net interest income; increased credit risk, including as a result of deterioration in economic conditions, could require us to increase our allowance for credit losses and could have a material adverse effect on our results of operations and financial condition; the risk in our ability to maintain a strong core deposit base or other low-cost funding sources. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 7, 2025 and other documents we file with the SEC from time to time. All subsequent written and oral forward-looking statements attributable to First Western or persons acting on First Western’s behalf are expressly qualified in their entirety by this paragraph. Forward-looking statements speak only as of the date of this presentation. First Western undertakes no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise (except as required by law). This presentation contains certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of this presentation. Numbers in the presentation may not sum due to rounding. Our common stock is not a deposit or savings account. Our common stock is not insured by the Federal Deposit Insurance Corporation or any governmental agency or instrumentality. Except as otherwise indicated, this presentation speaks as of the date hereof. The delivery of this presentation shall not, under any circumstances, create any implication that there has been no change in the affairs of the Company after the date hereof.
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato(regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions Overview of 4Q25 4Q25 Earnings • Net income available to common shareholders of $3.3 million or $0.34 per diluted share • Diluted earnings per share increased 6% from the prior quarter, and 21% compared to 4Q24 • 4Q25 included a $1.4 million write-down in Other real estate owned ("OREO") that negatively impacted diluted EPS by $0.10 Continued Execution on Strategic Priorities • Continued focus on prudent risk management and a conservative approach to new loan production, supported by new banking talent that is helping drive solid loan growth • Continued disciplined expense management • Generally stable asset quality • Success in loan growth efforts with increase in loans held for investment of $59 million in 4Q25 Positive Trends in Key Metrics • Net interest income increased for the fifth consecutive quarter • Improvement in net interest margin from prior quarter primarily due to improved cost of funds • Further increase in tangible book value per share 3
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato(regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 4 Net Income Available to Common Shareholders and Earnings per Share • Net income of $3.3 million, or $0.34 diluted earnings per share, in 4Q25 • Tangible book value per share(1) increased 1.6% to $24.07 • 4Q25 included a $1.4 million write-down in OREO that negatively impacted diluted EPS by $0.10 Net Income Available to Common Shareholders Diluted Earnings per Share $2,748 $4,185 $2,503 $3,186 $3,314 4Q24 1Q25 2Q25 3Q25 4Q25 $— $1,000 $2,000 $3,000 $4,000 $5,000 $0.28 $0.43 $0.26 $0.32 $0.34 4Q24 1Q25 2Q25 3Q25 4Q25 $— $0.10 $0.20 $0.30 $0.40 $0.50 (1) See Non-GAAP reconciliation within the appendix.
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 5 Loan Portfolio • Total loans held for investment increased $59.4 million from prior quarter due to strong loan production • New loan production diversified across markets and loan types • New loan production in 4Q25 of $146.2 million with a focus on relationship-based lending • Average rate on new loan production was 6.36% in 4Q25, consistent with 6.38% in 3Q25 4Q24 3Q25 4Q25 Cash, securities and other $ 120,005 $ 159,204 $ 164,787 Consumer and other 17,333 12,254 19,504 Construction and development 315,686 230,600 189,790 1-4 family residential 960,354 1,041,075 1,030,211 Non-owner occupied CRE 614,384 728,039 813,408 Owner occupied CRE 173,223 191,239 205,063 Commercial and industrial 220,501 225,919 226,107 Total $ 2,421,486 $ 2,588,330 $ 2,648,870 Loans accounted for at fair value(2) 7,508 4,319 3,216 Total Loans HFI $ 2,428,994 $ 2,592,649 $ 2,652,086 Mortgage loans held for sale 25,455 21,806 40,176 Loans held for sale 251 — — Total Loans $ 2,454,700 $ 2,614,455 $ 2,692,262 (1) Represents unpaid principal balance. Excludes deferred fees, unamortized premiums, basis adjustments, net. (2) Excludes fair value adjustments on loans accounted for under the fair value option. ($ in thousands, as of quarter end) Loan Portfolio Composition(1) Loan Portfolio Details Loan Production & Loan Payoffs Total Loans(1) $2,421 $2,428 $2,468 $2,594 $2,676 $2,614 $2,692 4Q24 1Q25 2Q25 3Q25 4Q25 3Q25 4Q25 $1,000 $1,500 $2,000 $2,500 $3,000 Average Period End $93.5 $70.8 $166.9 $145.7 $146.2 $97.1 $71.6 $122.6 $110.1 $131.3 Production Loan Payoffs 4Q24 1Q25 2Q25 3Q25 4Q25 $0 $50 $100 $150 $200 ($ in millions) ($ in millions)
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 6 Total Deposits • Total deposits decreased 3.5% from $2.85 billion in 3Q25 to $2.75 billion in 4Q25, primarily driven by decreases in money market deposit accounts and Noninterest-bearing deposits • Interest-bearing deposits decreased 2.8% from $2.47 billion in 3Q25 to $2.40 billion in 4Q25 primarily driven by a decrease in higher-cost money market deposit accounts • Noninterest-bearing deposits decreased 8.2% from $376 million in 3Q25 to $345 million in 4Q25 primarily due to operating account fluctuations • Average Noninterest-bearing deposits increased 2.7% from $350 million in 3Q25 to $359 million in 4Q25 4Q24 3Q25 4Q25 Money market deposit accounts $ 1,513,605 $ 1,988,336 $ 1,913,591 Time deposits 471,415 349,533 352,473 Interest checking accounts 139,374 121,901 122,292 Savings accounts 14,212 13,433 13,250 Noninterest-bearing accounts 375,603 375,708 344,969 Total Deposits $ 2,514,209 $ 2,848,911 $ 2,746,575 Deposit Portfolio Composition Total Deposits $2,499 $2,454 $2,400 $2,772 $2,747 $2,849 $2,747 4Q24 1Q25 2Q25 3Q25 4Q25 3Q25 4Q25 $1,000 $1,500 $2,000 $2,500 $3,000 Average Period End ($ in millions)($ in thousands, as of quarter end)
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 7 Trust and Investment Management • Total assets under management decreased $155 million, or 2.1%, during the quarter to $7.28 billion • The decrease in AUM from 3Q25 was primarily attributable to net withdrawals in low-fee and fixed-fee product categories • Investment agency AUM increased $15 million during the quarter, primarily driven by higher market values at the end of 4Q25 ($ in millions, as of quarter end) Total Assets Under Management $7,321 $7,177 $7,497 $7,433 $7,278 Investment Agency Managed Trust 401(k)/Retirement Directed Trust Custody 4Q24 1Q25 2Q25 3Q25 4Q25 $— $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions (1) See Non-GAAP reconciliation within the appendix. Gross Revenue Gross Revenue(1) Gross Revenue(1) 8 $23.8 $24.6 $24.2 $26.3 $26.7 Wealth Management Mortgage 4Q24 1Q25 2Q25 3Q25 4Q25 $— $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 • Gross revenue(1) increased 1.5% from $26.3 million in 3Q25 to $26.7 million in 4Q25 • Net interest income increased 5.6% from prior quarter primarily driven by a 17 basis point increase in net interest margin • Non-interest income decreased $0.8 million from prior quarter primarily driven by decreases in Net gain on mortgage loans and Risk management and insurance fees Non-interest Income $6,079 22.8% Net Interest Income $20,577 77.2% ($ in thousands) ($ in millions)
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 9 Net Interest Income and Net Interest Margin • Net interest income increased $1.1 million, or 5.6%, from $19.5 million in 3Q25 to $20.6 million in 4Q25, primarily driven by a 17 basis point increase in net interest margin • Net interest margin increased 17 basis points during the quarter from 2.54% in 3Q25 to 2.71% in 4Q25, primarily due to a 20 basis point decrease in cost of funds, partially offset by a 3 basis point decrease in yield on interest-earning assets • The decrease in cost of funds was primarily due to lower rates on money market deposit accounts as a result of the Company reducing deposit rates commensurate with the short-term rate decreases, and runoff of higher-cost deposit accounts Net Interest Income Net Interest Margin $16,908 $17,453 $17,884 $19,454 $20,577 4Q24 1Q25 2Q25 3Q25 4Q25 $— $5,000 $10,000 $15,000 $20,000 $25,000 2.45% 2.61% 2.67% 2.54% 2.71% 4Q24 1Q25 2Q25 3Q25 4Q25 —% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% ($ in thousands)
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 10 Non-Interest Income • Non-interest income decreased $0.8 million to $6.1 million from prior quarter primarily driven by decreases in Net gain on mortgage loans and Risk management and insurance fees • The decrease in Net gain on mortgage loans was driven by an increase in commissions due to higher funded volume and slightly lower margins due to a highly competitive mortgage market • The decrease in Risk management and insurance fees was driven by lower new case activity Total Non-Interest Income Trust and Investment Management Fees $6,459 $7,345 $6,305 $6,842 $6,079 Trust and Investment Management Fees Bank Fees Net Gain on Mortgage Loans Net gain on OREO Risk Management and Insurance Fees Other 4Q24 1Q25 2Q25 3Q25 4Q25 $(2,000) $— $2,000 $4,000 $6,000 $8,000 $10,000 $4,660 $4,677 $4,512 $4,629 $4,634 4Q24 1Q25 2Q25 3Q25 4Q25 $— $2,000 $4,000 $6,000 ($ in thousands) ($ in thousands)
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 11 Non-Interest Expense and Efficiency Ratio • Non-interest expense increased to $21.3 million from $20.1 million in the third quarter of 2025, primarily driven by a $1.4 million OREO write-down and an increase in Professional services, partially offset by decreases in Occupancy and equipment and Salaries and employee benefits • Non-interest expense excluding the OREO write-down decreased to $20.0 million from $20.1 million in the third quarter • The efficiency ratio improved from 76.38% as of 3Q25 and 80.74% as of 4Q24 to 74.88% as of 4Q25 • Efficiency ratio improvement for the fifth consecutive quarter (1) See Non-GAAP reconciliation within the appendix. Adjusted Non-Interest Expense(1) Operating Efficiency Ratio(1) (1) (1) (1) $19,205 $19,441 $19,046 $20,066 $19,996 4Q24 1Q25 2Q25 3Q25 4Q25 $— $5,000 $10,000 $15,000 $20,000 $25,000 80.74% 79.16% 78.83% 76.38% 74.88% 4Q24 1Q25 2Q25 3Q25 4Q25 —% 20.00% 40.00% 60.00% 80.00% 100.00% ($ in thousands)
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 12 Asset Quality • NPAs decreased $3.1 million to $19.6 million in 4Q25 primarily driven by a write-down of OREO, pay downs, and a charge-off • Non-accrual loans decreased $1.7 million to $16.6 million in 4Q25 • NPA/Total Assets of 0.53% when excluding OREO under contract that is anticipated to close in 1Q26 • Provision expense of $0.9 million during 4Q25, compared to $2.3 million in 3Q25 • ACL/Total loans remained consistent at 0.81% in 4Q25 and 3Q25 Non-Performing Assets/Total Assets Net Charge-Offs (Recoveries)/Average Loans 1.68% 0.59% 0.62% 0.70% 0.62% 4Q24 1Q25 2Q25 3Q25 4Q25 —% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% 2.20% (0.01)% 0.02% 0.03% 0.01% 0.02% 4Q24 1Q25 2Q25 3Q25 4Q25 (0.05)% —% 0.05% 0.10% 0.15% 0.20% 0.25%
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 13 Near Term Outlook • First Western's markets continue to perform well and the strength of our balance sheet and franchise provides opportunities to capitalize on market disruption and challenges being faced by competing banks to add new clients and banking talent • New market president added in Arizona, which represents good growth opportunities • Loan pipeline remains strong and should continue to result in solid loan growth in 2026 • Positive trends expected to continue ◦ Solid loan and deposit growth ◦ Continued expansion in net interest margin ◦ More robust business development activities in Wealth Management business ◦ Higher level of mortgage production resulting from addition of MLOs ◦ More operating leverage resulting from disciplined expense control ◦ No meaningful deterioration expected in asset quality given the trends we are seeing in the portfolio and our clients continuing to perform well • Positive trends in key areas expected to continue, which should result in steady improvement in financial performance and further value being created for shareholders
Appendix 14
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 15 Capital and Liquidity Overview Liquidity Funding Sources (as of 12/31/25) (1) See Non-GAAP reconciliation within the appendix. (2) Based on internal policy guidelines. Consolidated Capital Ratios (as of 12/31/25) Tangible Common Equity / TBV per Share(1) ($ in thousands) Liquidity Reserves: Total Available Cash $ 198,734 Unpledged Investment Securities 109,020 Borrowed Funds: Secured: FHLB Available 623,379 FRB Available 23,575 Other: Brokered Remaining Capacity 341,940 Unsecured: Credit Lines 29,000 Total Liquidity Funding Sources $ 1,325,648 Loan-to-Deposit Ratio 96.5 % 9.75% 9.75% 12.34% 7.68% Tier 1 Capital to Risk- Weighted Assets CET1 to Risk- Weighted Assets Total Capital to Risk- Weighted Assets Tier 1 Capital to Average Assets —% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% (2) (TCE $ in thousands) $130,704 $187,139 $208,760 $210,884 $220,695 $224,979 $227,323 $230,022 $234,138 $16.44 $19.87 $21.99 $22.01 $22.83 $23.18 $23.39 $23.68 $24.07 TCE TBV/Share 4Q20 4Q21 4Q22 4Q23 4Q24 1Q25 2Q25 3Q25 4Q25 $— $40,000 $80,000 $120,000 $160,000 $200,000 $240,000 $280,000 $— $4 $8 $12 $16 $20 $24
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 16 Non-GAAP Reconciliation Consolidated Tangible Common Book Value Per Share As of (Dollars in thousands) December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 Total shareholders' equity $ 252,322 $ 256,555 $ 258,847 $ 261,495 $ 265,560 Goodwill and other intangibles, net 31,627 31,576 31,524 31,473 31,422 Tangible common equity $ 220,695 $ 224,979 $ 227,323 $ 230,022 $ 234,138 Common shares outstanding, end of period 9,667,142 9,704,320 9,717,922 9,714,711 9,725,731 Tangible common book value per share $ 22.83 $ 23.18 $ 23.39 $ 23.68 $ 24.07 Net income available to common shareholders $ 3,314 Return on tangible common equity (annualized) 5.66 % Consolidated Efficiency Ratio For the Three Months Ended, (Dollars in thousands) December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 Non-interest expense $ 20,427 $ 19,361 $ 19,099 $ 20,074 $ 21,306 Less: OREO expenses and write-downs 1,222 (80) 53 8 1,310 Adjusted non-interest expense $ 19,205 $ 19,441 $ 19,046 $ 20,066 $ 19,996 Net interest income $ 16,908 $ 17,453 $ 17,884 $ 19,454 $ 20,577 Non-interest income 6,459 7,345 6,305 6,842 6,079 Less: unrealized (loss) gain recognized on equity securities (49) 11 3 6 (6) Less: net (loss) gain on loans accounted for under the fair value option (149) 6 26 18 (44) Less: net (loss) gain on loans held for sale (222) 222 — — — Adjusted non-interest income $ 6,879 $ 7,106 $ 6,276 $ 6,818 $ 6,129 Adjusted total income $ 23,787 $ 24,559 $ 24,160 $ 26,272 $ 26,706 Efficiency ratio 80.74 % 79.16 % 78.83 % 76.38 % 74.88 %
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 17 Non-GAAP Reconciliation Wealth Management Gross Revenue For the Three Months Ended, (Dollars in thousands) December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 Total income before non-interest expense $ 23,540 $ 23,468 $ 20,919 $ 22,278 $ 24,331 Less: unrealized (loss) gain recognized on equity securities (49) 11 3 6 (6) Less: net (loss) gain on loans accounted for under the fair value option (149) 6 26 18 (44) Less: net (loss) gain on loans held for sale at fair value (222) 222 — — — Plus: (release of) provision for credit losses (974) 80 1,773 2,257 915 Gross revenue $ 22,986 $ 23,309 $ 22,663 $ 24,511 $ 25,296 Mortgage Gross Revenue For the Three Months Ended, (Dollars in thousands) December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 Total income before non-interest expense $ 801 $ 1,250 $ 1,497 $ 1,761 $ 1,410 Gross revenue $ 801 $ 1,250 $ 1,497 $ 1,761 $ 1,410 Consolidated Gross Revenue For the Three Months Ended, (Dollars in thousands) December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 Total income before non-interest expense $ 24,341 $ 24,718 $ 22,416 $ 24,039 $ 25,741 Less: unrealized (loss) gain recognized on equity securities (49) 11 3 6 (6) Less: net (loss) gain on loans accounted for under the fair value option (149) 6 26 18 (44) Less: net (loss) gain on loans held for sale at fair value (222) 222 — — — Plus: (release of) provision for credit losses (974) 80 1,773 2,257 915 Gross revenue $ 23,787 $ 24,559 $ 24,160 $ 26,272 $ 26,706
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 18 Non-GAAP Reconciliation Pre-tax, Pre-Provision Net Income For the Three Months Ended, (Dollars in thousands) December 31, 2024 September 30, 2025 December 31, 2025 Income before income taxes $ 3,914 $ 3,965 $ 4,435 Plus: (release of) provision for credit losses (974) 2,257 915 Pre-tax, pre-provision net income $ 2,940 $ 6,222 $ 5,350 Allocation of the Allowance for Credit Losses (ACL) As of December 31, 2025 December 31, 2024 (Dollars in thousands) ACL Amount % of Loans % of ACL %(1) ACL Amount % of Loans % of ACL %(1) Commercial: Construction and Development $ 2,210 1.2 % 10.3 % 7.2 % $ 5,184 1.7 % 28.3 % 13.0 % Non-Owner Occupied CRE 4,359 0.5 20.4 30.7 4,340 0.7 23.7 25.3 Owner Occupied CRE 846 0.4 3.9 7.7 654 0.4 3.5 7.1 Commercial and Industrial 6,892 3.0 32.1 8.5 2,357 1.1 12.9 9.1 Total Commercial 14,307 1.0 66.7 54.1 12,535 1.0 68.4 54.5 Consumer: Cash, Securities and Other 1,150 0.7 5.4 6.2 410 0.3 2.2 5.0 Consumer and Other 138 0.7 0.6 0.7 185 1.1 1.0 0.7 1-4 Family Residential 5,846 0.6 27.3 39.0 5,200 0.5 28.4 39.8 Total Consumer 7,134 0.6 33.3 45.9 5,795 0.5 31.6 45.5 Total allowance for credit losses $ 21,441 0.8 % 100 % 100 % $ 18,330 0.8 % 100 % 100 % (1) Represents the percentage of loans to total loans in the respective category.