Exhibit 99.1
First Western Reports Second Quarter 2026 Financial Results
Second Quarter 2026 Summary
•Net income available to common shareholders of $5.7 million, or $0.57 per diluted shares, in Q2 2026
•Net interest income increased $0.9 million, or 4.3%, from $20.9 million in Q1 2026 to $21.8 million in Q2 2026
•Net interest margin increased 9 basis points from 2.81% in Q1 2026 to 2.90% in Q2 2026
•Average noninterest-bearing deposits increased $17.8 million, or 5.1%, from $347.5 million in Q1 2026 to $365.3 million in Q2 2026
Denver, Colo., July 23, 2026 – First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the second quarter ended June 30, 2026.
Net income available to common shareholders was $5.7 million, or $0.57 per diluted share, for the second quarter of 2026. This compares to net income of $6.2 million, or $0.63 per diluted share, for the first quarter of 2026, and net income of $2.5 million, or $0.26 per diluted share, for the second quarter of 2025.
Scott C. Wylie, CEO of First Western, commented, “Our second quarter performance reflected continued execution across the franchise, highlighted by growth in net interest income, expansion in our net interest margin, disciplined expense management, stable asset quality, and positive noninterest-bearing deposit trends. Healthy economic activity across our markets continues to support high quality loan demand, while our focus on relationship-based banking is helping us steadily expand our deposit base. Coupled with careful balance sheet management, these efforts contributed to further growth in both book value and tangible book value per share during the quarter.
“Supported by strong loan and deposit pipelines and favorable trends across our business, we are well positioned to build on our momentum and continue delivering attractive financial performance and long-term value for our shareholders throughout 2026,” said Mr. Wylie.
For the Three Months Ended | |||||||||||||||||
| June 30, | March 31, | June 30, | |||||||||||||||
| (Dollars in thousands, except per share data) | 2026 | 2026 | 2025 | ||||||||||||||
| Earnings Summary | |||||||||||||||||
| Net interest income | $ | 21,764 | $ | 20,883 | $ | 17,884 | |||||||||||
| (Release of) provision for credit losses | (469) | (728) | 1,773 | ||||||||||||||
| Total non-interest income | 6,385 | 6,656 | 6,305 | ||||||||||||||
| Total non-interest expense | 21,217 | 20,164 | 19,099 | ||||||||||||||
| Income before income taxes | 7,401 | 8,103 | 3,317 | ||||||||||||||
Income tax expense | 1,672 | 1,895 | 814 | ||||||||||||||
| Net income available to common shareholders | 5,729 | 6,208 | 2,503 | ||||||||||||||
| Basic earnings per common share | 0.59 | 0.64 | 0.26 | ||||||||||||||
| Diluted earnings per common share | 0.57 | 0.63 | 0.26 | ||||||||||||||
| Return on average assets (annualized) | 0.73 | % | 0.79 | % | 0.36 | % | |||||||||||
| Return on average shareholders' equity (annualized) | 8.28 | 9.32 | 3.90 | ||||||||||||||
Return on tangible common equity (annualized)(1) | 9.19 | 10.26 | 4.40 | ||||||||||||||
| Net interest margin | 2.90 | 2.81 | 2.67 | ||||||||||||||
Efficiency ratio(1) | 74.03 | 73.11 | 78.83 | ||||||||||||||
(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 Second Quarter 2026
Revenue
Total income before non-interest expense was $28.6 million for the second quarter of 2026, an increase of 1.1% from $28.3 million for the first quarter of 2026. Gross revenue(1) was $28.1 million for the second quarter of 2026, an increase of 1.8% from $27.6 million for the first quarter of 2026. Relative to the first quarter of 2026, the increase in Total income before non-interest expense was primarily driven by an increase in Net interest income, partially offset by a decrease in Non-interest income. Relative to the second quarter of 2025, Total income before non-interest expense increased 27.7% from $22.4 million and Gross revenue increased 16.1% from $24.2 million. Relative to the second 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.
(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 second quarter of 2026 increased 9 basis points to 2.90% from 2.81% reported in the first quarter of 2026, primarily due to a decrease in cost of funds and an improved mix shift in average interest-earning assets. The yield on interest-earning assets increased 4 basis points to 5.58% from 5.54% reported in the first quarter of 2026, while the cost of funds decreased 4 basis points to 2.86% from 2.90% reported in the first quarter of 2026. The increase in yield on interest-earning assets was primarily driven by an improved mix shift in average interest-earning assets as a result of increases in average debt security and loan balances in the quarter, and an increase in loan yields. The decrease in cost of funds was primarily driven by an improved mix shift in average deposits as a result of an increase in average noninterest-bearing deposits, and lower rates on time deposit accounts.
Relative to the second quarter of 2025, net interest margin increased 23 basis points from 2.67%, primarily due to a 26 basis point decrease in cost of funds, partially offset by a 2 basis point decrease in yield on interest-earning assets.
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Net Interest Income
Net interest income for the second quarter of 2026 was $21.8 million, an increase of 4.3% from $20.9 million for the first quarter of 2026. The increase quarter-over-quarter was primarily driven by a 9 basis point increase in net interest margin and an increase in day count. Relative to the second quarter of 2025, Net interest income increased 21.8% from $17.9 million. The increase compared to the second quarter of 2025 was primarily driven by an increase in average interest-earning assets and a 23 basis point increase in net interest margin.
Non-interest Income
Non-interest income for the second quarter of 2026 was $6.4 million, a decrease of 4.5% from $6.7 million in the first quarter of 2026. The decrease was primarily driven by decreases in Net gain on mortgage loans and Risk management and insurance fees, partially offset by an increase in Bank fees. The decrease in Net gain on mortgage loans was driven by lower origination volume, while the decrease in Risk management and insurance fees was primarily driven by smaller case size. The increase in Bank fees was driven by increases in prepayment penalty and swap fees.
Relative to the second quarter of 2025, Non-interest income increased $0.1 million, primarily driven by increases in Trust and investment management fees and Bank fees, offset by a decrease in Net gain on mortgage loans. The increase in Trust and investment management fees was primarily driven by increases in fee income from Investment Agency and Managed Trust accounts. The increase in Bank fees was driven by increases in prepayment penalty and swap fees. The decrease in Net gain on mortgage loans was primarily driven by lower margins.
Non-interest Expense
Non-interest expense for the second quarter of 2026 was $21.2 million, an increase of 5.0% from $20.2 million in the first quarter of 2026. The increase was primarily driven by increases in Technology and information systems, Data processing, and Marketing. The increase in Technology and information systems was primarily attributable to a $0.4 million nonrecurring charge related to the write-off of certain previously capitalized technology assets.
Relative to the second quarter of 2025, Non-interest expense increased 11.0% from $19.1 million, primarily driven by an increase in Salaries and employee benefits due to an increase in headcount and bonus accruals.
The Company’s efficiency ratio(1) was 74.0% in the second quarter of 2026, compared to 73.1% in the first quarter of 2026 and 78.8% in the second quarter of 2025.
(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 $1.7 million for the second quarter of 2026, compared to $1.9 million for the first quarter of 2026, and $0.8 million for the second quarter of 2025.
Loans
Total loans held for investment were $2.72 billion as of June 30, 2026, an increase of $23.1 million, or 0.9%, from $2.69 billion as of March 31, 2026. Changes in the quarter included growth in the 1-4 family residential and Cash, securities, and other portfolios. Relative to the second quarter of 2025, total loans held for investment increased 6.8% from $2.54 billion as of June 30, 2025, primarily driven by growth in Non-owner occupied commercial real estate, 1-4 family residential, Owner occupied commercial real estate, and Cash, securities, and other portfolios, partially offset by a decrease in the Construction and development portfolio.
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Deposits
Total deposits were $2.85 billion as of June 30, 2026, an increase of 0.4%, from $2.84 billion as of March 31, 2026. The increase was primarily driven by an increase in money market deposit accounts, partially offset by a decrease in time deposit accounts. Relative to the second quarter of 2025, Total deposits increased 12.6% from $2.53 billion as of June 30, 2025, primarily driven by increases in money market deposit accounts and Noninterest-bearing accounts, partially offset by a decrease in time deposit accounts.
Borrowings
Federal Home Loan Bank (“FHLB”) borrowings were $36.4 million as of June 30, 2026, a decrease of $13.6 million from $50.0 million as of March 31, 2026. The decrease when compared to March 31, 2026 was primarily driven by the pay down of FHLB borrowings. Relative to the second quarter of 2025, borrowings decreased $127.0 million from $163.4 million as of June 30, 2025 driven by the pay down of FHLB borrowings.
Subordinated notes were $44.8 million as of June 30, 2026 and March 31, 2026. Subordinated notes increased $0.1 million from $44.7 million as of June 30, 2025.
Assets Under Management
Assets Under Management (“AUM”) was $7.28 billion as of June 30, 2026, an increase of $41 million, or 0.6%, from $7.23 billion as of March 31, 2026. The increase in AUM during the quarter was primarily attributable to improving market conditions. Compared to June 30, 2025, total AUM decreased 2.9% from $7.50 billion primarily attributable to net withdrawals in fixed-fee accounts.
Credit Quality
Non-performing assets totaled $16.3 million, or 0.50%, of Total assets as of June 30, 2026 and March 31, 2026. As of June 30, 2025, non-performing assets totaled $18.8 million, or 0.62%, of Total assets. Relative to the second quarter of 2025, the decrease in non-performing assets was primarily driven by the sale of an OREO property in the first quarter of 2026, pay downs, and a charge-off, partially offset by additions to non-accrual loans.
Non-accrual loans totaled $16.3 million as of June 30, 2026 and March 31, 2026. As of June 30, 2025, non-accrual loans totaled $14.4 million. Relative to the second quarter of 2025, the increase was primarily driven by additions to non-accrual loans, partially offset by pay downs and a charge-off.
During the second quarter of 2026, the Company recorded a provision release of $0.5 million, compared to a provision release of $0.7 million in the first quarter of 2026, and provision of $1.8 million in the second quarter of 2025. The release of $0.5 million in the second quarter of 2026 was primarily driven by decreased reserves on individually analyzed loans and a decrease in general reserves due to improved economic forecasts. As of June 30, 2026 and March 31, 2026, the Allowance for credit losses as a percentage of Total loans was 75 basis points and 77 basis points, respectively.
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Capital
As of June 30, 2026, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of June 30, 2026, the Bank was classified as “well capitalized,” as summarized in the following table:
| June 30, | |||||
| 2026 | |||||
| Consolidated Capital | |||||
| Tier 1 capital to risk-weighted assets | 9.93 | % | |||
| CET1 to risk-weighted assets | 9.93 | ||||
| Total capital to risk-weighted assets | 12.47 | ||||
| Tier 1 capital to average assets | 8.06 | ||||
| Bank Capital | |||||
| Tier 1 capital to risk-weighted assets | 11.37 | % | |||
| CET1 to risk-weighted assets | 11.37 | ||||
| Total capital to risk-weighted assets | 12.20 | ||||
| Tier 1 capital to average assets | 9.22 | ||||
Book value per common share increased 2.2% from $28.10 as of March 31, 2026 to $28.73 as of June 30, 2026. Book value per common share increased 7.8% from $26.64 as of June 30, 2025.
Tangible book value per common share(1) increased 2.7% from $24.87 as of March 31, 2026 to $25.53 as of June 30, 2026. Tangible book value per common share increased 9.1% from $23.39 as of June 30, 2025.
(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, July 24, 2026. Telephone access: https://register-conf.media-server.com/register/BI620e7cc229a04eecacb0dc725f48f6cf
A slide presentation relating to the second quarter 2026 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.
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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,” “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 February 27, 2026 (“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.
Lisa Fortuna
310-622-8251
MYFW@finprofiles.com
IR@myfw.com
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First Western Financial, Inc.
Condensed Consolidated Statements of Income (unaudited)
| Three Months Ended | |||||||||||||||||
| June 30, | March 31, | June 30, | |||||||||||||||
| (dollars in thousands, except per share amounts) | 2026 | 2026 | 2025 | ||||||||||||||
| Interest and dividend income: | |||||||||||||||||
| Loans, including fees | $ | 38,967 | $ | 38,125 | $ | 35,065 | |||||||||||
| Loans accounted for under the fair value option | 23 | 39 | 85 | ||||||||||||||
Investment securities | 1,845 | 1,464 | 819 | ||||||||||||||
| Interest-bearing deposits in other financial institutions | 876 | 1,341 | 1,376 | ||||||||||||||
| Dividends, restricted stock | 142 | 136 | 155 | ||||||||||||||
| Total interest and dividend income | 41,853 | 41,105 | 37,500 | ||||||||||||||
| Interest expense: | |||||||||||||||||
| Deposits | 18,980 | 19,017 | 18,208 | ||||||||||||||
| Other borrowed funds | 1,109 | 1,205 | 1,408 | ||||||||||||||
| Total interest expense | 20,089 | 20,222 | 19,616 | ||||||||||||||
| Net interest income | 21,764 | 20,883 | 17,884 | ||||||||||||||
| Less: (Release of) provision for credit losses | (469) | (728) | 1,773 | ||||||||||||||
Net interest income, after provision for credit losses | 22,233 | 21,611 | 16,111 | ||||||||||||||
| Non-interest income: | |||||||||||||||||
| Trust and investment management fees | 4,742 | 4,751 | 4,512 | ||||||||||||||
| Net gain on mortgage loans | 906 | 1,458 | 1,187 | ||||||||||||||
| Bank fees | 429 | 305 | 293 | ||||||||||||||
| Risk management and insurance fees | 112 | 249 | 47 | ||||||||||||||
| Income on company-owned life insurance | 119 | 116 | 112 | ||||||||||||||
| Net gain (loss) on loans accounted for under the fair value option | 10 | (39) | 26 | ||||||||||||||
| Net loss on other real estate owned | — | (7) | — | ||||||||||||||
| Unrealized (loss) gain recognized on equity securities | (2) | (4) | 3 | ||||||||||||||
| Other | 69 | (173) | 125 | ||||||||||||||
| Total non-interest income | 6,385 | 6,656 | 6,305 | ||||||||||||||
| Total income before non-interest expense | 28,618 | 28,267 | 22,416 | ||||||||||||||
| Non-interest expense: | |||||||||||||||||
| Salaries and employee benefits | 13,034 | 12,935 | 11,019 | ||||||||||||||
| Occupancy and equipment | 1,983 | 1,903 | 2,246 | ||||||||||||||
| Professional services | 1,490 | 1,596 | 1,855 | ||||||||||||||
| Technology and information systems | 1,478 | 999 | 1,008 | ||||||||||||||
| Data processing | 1,359 | 1,186 | 1,166 | ||||||||||||||
| Marketing | 358 | 193 | 267 | ||||||||||||||
| Amortization of other intangible assets | 48 | 48 | 52 | ||||||||||||||
| Other | 1,467 | 1,304 | 1,486 | ||||||||||||||
| Total non-interest expense | 21,217 | 20,164 | 19,099 | ||||||||||||||
| Income before income taxes | 7,401 | 8,103 | 3,317 | ||||||||||||||
Income tax expense | 1,672 | 1,895 | 814 | ||||||||||||||
| Net income available to common shareholders | $ | 5,729 | $ | 6,208 | $ | 2,503 | |||||||||||
| Earnings per common share: | |||||||||||||||||
| Basic | $ | 0.59 | $ | 0.64 | $ | 0.26 | |||||||||||
| Diluted | 0.57 | 0.63 | 0.26 | ||||||||||||||
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First Western Financial, Inc.
Condensed Consolidated Balance Sheets (unaudited)
| June 30, | March 31, | June 30, | |||||||||||||||
| (dollars in thousands) | 2026 | 2026 | 2025 | ||||||||||||||
| Assets | |||||||||||||||||
| Cash and cash equivalents: | |||||||||||||||||
| Cash and due from banks | $ | 14,310 | $ | 10,907 | $ | 12,353 | |||||||||||
| Interest-bearing deposits in other financial institutions | 160,576 | 253,144 | 221,861 | ||||||||||||||
| Total cash and cash equivalents | 174,886 | 264,051 | 234,214 | ||||||||||||||
Available-for-sale debt securities, at fair value (amortized cost of $89,745, $41,937, and $0, respectively) | 89,615 | 41,939 | — | ||||||||||||||
Held-to-maturity debt securities (fair value of $112,617, $90,775 and $93,979, respectively), net of allowance for credit losses of $151, $83, and $71, respectively | 116,766 | 95,030 | 99,825 | ||||||||||||||
| Correspondent bank stock, at cost | 5,695 | 6,424 | 11,254 | ||||||||||||||
| Mortgage loans held for sale, at fair value | 24,675 | 28,426 | 24,151 | ||||||||||||||
Loans (includes $1,758, $2,468, and $5,099 measured at fair value, respectively) | 2,711,803 | 2,690,115 | 2,540,096 | ||||||||||||||
| Allowance for credit losses | (20,297) | (20,801) | (18,994) | ||||||||||||||
| Loans, net | 2,691,506 | 2,669,314 | 2,521,102 | ||||||||||||||
| Premises and equipment, net | 25,641 | 25,704 | 24,488 | ||||||||||||||
| Accrued interest receivable | 11,338 | 11,582 | 10,783 | ||||||||||||||
| Accounts receivable | 4,781 | 5,461 | 4,435 | ||||||||||||||
| Other receivables | 171 | 1,318 | 4,915 | ||||||||||||||
| Other real estate owned, net | — | — | 4,385 | ||||||||||||||
| Goodwill and other intangible assets, net | 31,325 | 31,373 | 31,524 | ||||||||||||||
| Deferred tax assets, net | 2,679 | 3,073 | 2,809 | ||||||||||||||
| Company-owned life insurance | 17,651 | 17,532 | 17,184 | ||||||||||||||
| Other assets | 41,277 | 39,490 | 35,728 | ||||||||||||||
| Total assets | $ | 3,238,006 | $ | 3,240,717 | $ | 3,026,797 | |||||||||||
| Liabilities | |||||||||||||||||
| Deposits: | |||||||||||||||||
| Noninterest-bearing | $ | 381,826 | $ | 380,072 | $ | 361,656 | |||||||||||
| Interest-bearing | 2,464,138 | 2,461,543 | 2,167,473 | ||||||||||||||
| Total deposits | 2,845,964 | 2,841,615 | 2,529,129 | ||||||||||||||
| Borrowings: | |||||||||||||||||
| Federal Home Loan Bank and Federal Reserve borrowings | 36,431 | 50,006 | 163,416 | ||||||||||||||
| Subordinated notes | 44,849 | 44,810 | 44,673 | ||||||||||||||
| Accrued interest payable | 1,243 | 1,593 | 1,406 | ||||||||||||||
| Other liabilities | 28,926 | 29,328 | 29,326 | ||||||||||||||
| Total liabilities | 2,957,413 | 2,967,352 | 2,767,950 | ||||||||||||||
| Shareholders’ Equity | |||||||||||||||||
| Total shareholders’ equity | 280,593 | 273,365 | 258,847 | ||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,238,006 | $ | 3,240,717 | $ | 3,026,797 | |||||||||||
9
First Western Financial, Inc.
Consolidated Financial Summary (unaudited)
| June 30, | March 31, | June 30, | |||||||||||||||
| (dollars in thousands) | 2026 | 2026 | 2025 | ||||||||||||||
| Loan Portfolio | |||||||||||||||||
| Cash, securities, and other | $ | 182,017 | $ | 164,119 | $ | 161,725 | |||||||||||
| Consumer and other | 19,236 | 20,036 | 15,778 | ||||||||||||||
| Construction and development | 196,954 | 195,230 | 255,870 | ||||||||||||||
| 1-4 family residential | 1,089,697 | 1,069,542 | 1,012,662 | ||||||||||||||
| Non-owner occupied CRE | 768,528 | 780,279 | 655,954 | ||||||||||||||
| Owner occupied CRE | 222,514 | 212,177 | 196,692 | ||||||||||||||
| Commercial and industrial | 235,148 | 248,875 | 239,278 | ||||||||||||||
| Total | 2,714,094 | 2,690,258 | 2,537,959 | ||||||||||||||
| Loans accounted for under the fair value option | 1,774 | 2,492 | 5,235 | ||||||||||||||
| Total loans held for investment | 2,715,868 | 2,692,750 | 2,543,194 | ||||||||||||||
Deferred fees, unamortized premiums, basis adjustments, net(1)(2) | (4,065) | (2,635) | (3,098) | ||||||||||||||
Loans (includes $1,758, $2,468, and $5,099 measured at fair value, respectively) | $ | 2,711,803 | $ | 2,690,115 | $ | 2,540,096 | |||||||||||
| Mortgage loans held for sale | 24,675 | 28,426 | 24,151 | ||||||||||||||
| Deposit Portfolio | |||||||||||||||||
| Money market deposit accounts | $ | 1,975,295 | $ | 1,945,207 | $ | 1,632,997 | |||||||||||
| Time deposits | 353,373 | 371,889 | 397,006 | ||||||||||||||
| Interest checking accounts | 122,394 | 130,821 | 123,967 | ||||||||||||||
| Savings accounts | 13,076 | 13,626 | 13,503 | ||||||||||||||
| Total interest-bearing deposits | 2,464,138 | 2,461,543 | 2,167,473 | ||||||||||||||
| Noninterest-bearing accounts | 381,826 | 380,072 | 361,656 | ||||||||||||||
| Total deposits | $ | 2,845,964 | $ | 2,841,615 | $ | 2,529,129 | |||||||||||
____________________
(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 | |||||||||||||||||
| June 30, | March 31, | June 30, | |||||||||||||||
| (dollars in thousands) | 2026 | 2026 | 2025 | ||||||||||||||
| Average Balance Sheets | |||||||||||||||||
| Assets | |||||||||||||||||
| Interest-earning assets: | |||||||||||||||||
| Interest-bearing deposits in other financial institutions | $ | 94,533 | $ | 145,676 | $ | 123,850 | |||||||||||
| Debt securities | 167,993 | 138,537 | 85,739 | ||||||||||||||
| Correspondent bank stock | 7,369 | 6,421 | 7,199 | ||||||||||||||
Gross loans | 2,712,366 | 2,684,756 | 2,443,758 | ||||||||||||||
| Mortgage loans held for sale | 22,800 | 30,682 | 18,803 | ||||||||||||||
| Loans held at fair value | 2,249 | 2,955 | 5,690 | ||||||||||||||
| Total interest-earning assets | 3,007,310 | 3,009,027 | 2,685,039 | ||||||||||||||
| Noninterest-earning assets | 121,384 | 123,719 | 124,497 | ||||||||||||||
| Total assets | $ | 3,128,694 | $ | 3,132,747 | $ | 2,809,536 | |||||||||||
| Liabilities and Shareholders’ Equity | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||
| Interest-bearing deposits | $ | 2,367,442 | $ | 2,387,214 | $ | 2,047,570 | |||||||||||
| FHLB and Federal Reserve borrowings | 41,409 | 50,338 | 75,362 | ||||||||||||||
| Subordinated notes | 44,823 | 44,785 | 44,639 | ||||||||||||||
| Total interest-bearing liabilities | 2,453,674 | 2,482,337 | 2,167,571 | ||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||
| Noninterest-bearing deposits | 365,291 | 347,520 | 352,391 | ||||||||||||||
| Other liabilities | 32,898 | 36,459 | 32,794 | ||||||||||||||
| Total noninterest-bearing liabilities | 398,189 | 383,979 | 385,185 | ||||||||||||||
| Total shareholders’ equity | 276,831 | 266,430 | 256,780 | ||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,128,694 | $ | 3,132,747 | $ | 2,809,536 | |||||||||||
| Yields/Cost of funds (annualized) | |||||||||||||||||
| Interest-bearing deposits in other financial institutions | 3.72 | % | 3.73 | % | 4.46 | % | |||||||||||
| Debt securities | 4.41 | 4.29 | 3.83 | ||||||||||||||
| Correspondent bank stock | 7.73 | 8.59 | 8.64 | ||||||||||||||
| Loans | 5.72 | 5.70 | 5.70 | ||||||||||||||
| Loan held at fair value | 4.10 | 5.35 | 5.99 | ||||||||||||||
| Mortgage loans held for sale | 5.54 | 5.34 | 6.61 | ||||||||||||||
| Total interest-earning assets | 5.58 | 5.54 | 5.60 | ||||||||||||||
| Interest-bearing deposits | 3.22 | 3.23 | 3.57 | ||||||||||||||
| Total deposits | 2.79 | 2.82 | 3.04 | ||||||||||||||
| FHLB and Federal Reserve borrowings | 3.86 | 4.03 | 4.14 | ||||||||||||||
| Subordinated notes | 6.35 | 6.38 | 5.66 | ||||||||||||||
| Total interest-bearing liabilities | 3.28 | 3.30 | 3.63 | ||||||||||||||
| Net interest margin | 2.90 | 2.81 | 2.67 | ||||||||||||||
| Net interest rate spread | 2.30 | 2.24 | 1.97 | ||||||||||||||
11
First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
| As of or for the Three Months Ended | |||||||||||||||||
| June 30, | March 31, | June 30, | |||||||||||||||
| (dollars in thousands, except share and per share amounts) | 2026 | 2026 | 2025 | ||||||||||||||
| Asset Quality | |||||||||||||||||
| Non-accrual loans | $ | 16,285 | $ | 16,324 | $ | 14,394 | |||||||||||
| Non-performing assets | 16,285 | 16,324 | 18,779 | ||||||||||||||
| Net (recoveries) charge-offs | (4) | (20) | 657 | ||||||||||||||
| Non-accrual loans to total loans | 0.60 | % | 0.61 | % | 0.57 | % | |||||||||||
| Non-performing assets to total assets | 0.50 | 0.50 | 0.62 | ||||||||||||||
| Allowance for credit losses to non-accrual loans | 124.64 | 127.43 | 131.96 | ||||||||||||||
| Allowance for credit losses to total loans | 0.75 | 0.77 | 0.75 | ||||||||||||||
| Net charge-offs to average loans | * | * | 0.03 | ||||||||||||||
| Assets Under Management | $ | 7,275,876 | $ | 7,234,541 | $ | 7,497,361 | |||||||||||
| Market Data | |||||||||||||||||
| Book value per share at period end | $ | 28.73 | $ | 28.10 | $ | 26.64 | |||||||||||
Tangible book value per common share(1) | $ | 25.53 | $ | 24.87 | $ | 23.39 | |||||||||||
| Weighted average outstanding shares, basic | 9,760,529 | 9,733,704 | 9,707,924 | ||||||||||||||
| Weighted average outstanding shares, diluted | 9,949,307 | 9,900,420 | 9,809,321 | ||||||||||||||
| Shares outstanding at period end | 9,765,129 | 9,728,968 | 9,717,922 | ||||||||||||||
| Consolidated Capital | |||||||||||||||||
| Tier 1 capital to risk-weighted assets | 9.93 | % | 9.90 | % | 9.96 | % | |||||||||||
| CET1 to risk-weighted assets | 9.93 | 9.90 | 9.96 | ||||||||||||||
| Total capital to risk-weighted assets | 12.47 | 12.52 | 12.67 | ||||||||||||||
| Tier 1 capital to average assets | 8.06 | 7.88 | 8.31 | ||||||||||||||
| Bank Capital | |||||||||||||||||
| Tier 1 capital to risk-weighted assets | 11.37 | % | 11.33 | % | 11.36 | % | |||||||||||
| CET1 to risk-weighted assets | 11.37 | 11.33 | 11.36 | ||||||||||||||
| Total capital to risk-weighted assets | 12.20 | 12.21 | 12.13 | ||||||||||||||
| Tier 1 capital to average assets | 9.22 | 9.01 | 9.49 | ||||||||||||||
____________________
(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.
*Represents percentages that are not meaningful.
12
First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
Reconciliations of Non-GAAP Financial Measures
| As of or for the Three Months Ended | |||||||||||||||||
| June 30, | March 31, | June 30, | |||||||||||||||
| (dollars in thousands, except share and per share amounts) | 2026 | 2026 | 2025 | ||||||||||||||
| Tangible Common | |||||||||||||||||
| Total shareholders' equity | $ | 280,593 | $ | 273,365 | $ | 258,847 | |||||||||||
| Less: goodwill and other intangibles, net | 31,325 | 31,373 | 31,524 | ||||||||||||||
| Tangible common equity | $ | 249,268 | $ | 241,992 | $ | 227,323 | |||||||||||
| Common shares outstanding, end of period | 9,765,129 | 9,728,968 | 9,717,922 | ||||||||||||||
| Tangible common book value per share | $ | 25.53 | $ | 24.87 | $ | 23.39 | |||||||||||
| Net income available to common shareholders | 5,729 | 6,208 | 2,503 | ||||||||||||||
| Return on tangible common equity (annualized) | 9.19 | % | 10.26 | % | 4.40 | % | |||||||||||
| Efficiency | |||||||||||||||||
| Non-interest expense | $ | 21,217 | $ | 20,164 | $ | 19,099 | |||||||||||
| Less: write-off of capitalized technology assets | 380 | — | — | ||||||||||||||
| Less: OREO expenses | 5 | — | 53 | ||||||||||||||
| Adjusted non-interest expense | $ | 20,832 | $ | 20,164 | $ | 19,046 | |||||||||||
| Total income before non-interest expense | $ | 28,618 | $ | 28,267 | $ | 22,416 | |||||||||||
| Less: unrealized (loss) gain recognized on equity securities | (2) | (4) | 3 | ||||||||||||||
| Less: net gain (loss) on loans accounted for under the fair value option | 10 | (39) | 26 | ||||||||||||||
| Plus: (release of) provision for of credit losses | (469) | (728) | 1,773 | ||||||||||||||
| Gross revenue | $ | 28,141 | $ | 27,582 | $ | 24,160 | |||||||||||
| Efficiency ratio | 74.03 | % | 73.11 | % | 78.83 | % | |||||||||||
13
