First Western Reports Second Quarter 2025 Financial Results
First Western Financial (NASDAQ: MYFW) reported Q2 2025 financial results with net income of $2.5 million, or $0.26 per diluted share, compared to $4.2 million in Q1 2025 and $1.1 million in Q2 2024.
Key highlights include: total loans increased 4.7% to $2.54 billion, net interest margin improved by 6 basis points to 2.67%, and net interest income grew to $17.9 million. The bank maintained strong asset quality with non-performing assets at 0.62% of total assets. Assets Under Management (AUM) grew 4.5% to $7.50 billion, primarily due to improving market conditions.
The company demonstrated solid capital positions with the bank classified as "well capitalized," while executing share repurchases of 26,287 shares for $0.5 million during the quarter.
First Western Financial (NASDAQ: MYFW) ha comunicato i risultati finanziari del secondo trimestre 2025 con un utile netto di 2,5 milioni di dollari, pari a 0,26 dollari per azione diluita, rispetto ai 4,2 milioni del primo trimestre 2025 e a 1,1 milioni del secondo trimestre 2024.
I punti chiave includono: un aumento del 4,7% dei prestiti totali che hanno raggiunto 2,54 miliardi di dollari, un miglioramento del margine di interesse netto di 6 punti base arrivando al 2,67%, e una crescita del reddito da interessi netto a 17,9 milioni di dollari. La banca ha mantenuto una solida qualità degli attivi con gli attivi problematici pari allo 0,62% del totale degli attivi. Gli Asset Under Management (AUM) sono cresciuti del 4,5% raggiungendo 7,50 miliardi di dollari, principalmente grazie al miglioramento delle condizioni di mercato.
L'azienda ha dimostrato una solida posizione patrimoniale, con la banca classificata come "ben capitalizzata", eseguendo inoltre riacquisti di azioni per 26.287 titoli per un valore di 0,5 milioni di dollari nel corso del trimestre.
First Western Financial (NASDAQ: MYFW) informó los resultados financieros del segundo trimestre de 2025 con un ingreso neto de 2,5 millones de dólares, o 0,26 dólares por acción diluida, en comparación con 4,2 millones en el primer trimestre de 2025 y 1,1 millones en el segundo trimestre de 2024.
Los aspectos destacados incluyen: un aumento del 4,7% en los préstamos totales hasta 2,54 mil millones de dólares, un margen de interés neto mejorado en 6 puntos básicos hasta 2,67%, y un crecimiento en los ingresos netos por intereses a 17,9 millones de dólares. El banco mantuvo una sólida calidad de activos con activos no productivos en 0,62% del total de activos. Los Activos Bajo Administración (AUM) crecieron un 4,5% hasta 7,50 mil millones de dólares, principalmente debido a la mejora en las condiciones del mercado.
La compañía mostró una sólida posición de capital con la clasificación del banco como "bien capitalizado", mientras ejecutaba recompras de acciones por 26,287 acciones por un valor de 0,5 millones de dólares durante el trimestre.
First Western Financial (NASDAQ: MYFW)는 2025년 2분기 재무 결과를 발표하며 순이익 250만 달러, 희석 주당 0.26달러를 기록했다고 밝혔습니다. 이는 2025년 1분기의 420만 달러와 2024년 2분기의 110만 달러와 비교됩니다.
주요 내용으로는 총 대출이 4.7% 증가하여 25억 4천만 달러에 달했으며, 순이자마진이 6 베이시스 포인트 상승하여 2.67%를 기록했고, 순이자수익이 1,790만 달러로 증가했습니다. 은행은 총 자산 대비 부실 자산 비율을 0.62%로 유지하며 자산 건전성을 견고하게 유지했습니다. 운용 자산(AUM)은 시장 상황 개선에 힘입어 4.5% 증가한 75억 달러를 기록했습니다.
회사는 은행이 "우수한 자본 상태"로 분류되었음을 보여주었으며, 분기 동안 26,287주의 자사주를 50만 달러에 매입하는 주식 환매를 실행했습니다.
First Western Financial (NASDAQ : MYFW) a publié ses résultats financiers du deuxième trimestre 2025 avec un bénéfice net de 2,5 millions de dollars, soit 0,26 dollar par action diluée, contre 4,2 millions au premier trimestre 2025 et 1,1 million au deuxième trimestre 2024.
Les points clés incluent : une augmentation de 4,7 % des prêts totaux à 2,54 milliards de dollars, une amélioration de la marge d'intérêt nette de 6 points de base à 2,67 %, et une hausse du revenu net d'intérêts à 17,9 millions de dollars. La banque a maintenu une bonne qualité d'actifs avec des actifs non performants représentant 0,62 % du total des actifs. Les actifs sous gestion (AUM) ont augmenté de 4,5 % pour atteindre 7,50 milliards de dollars, principalement grâce à l'amélioration des conditions du marché.
La société a démontré une solide position en capital, la banque étant classée comme "bien capitalisée", tout en réalisant des rachats d'actions de 26 287 titres pour 0,5 million de dollars au cours du trimestre.
First Western Financial (NASDAQ: MYFW) meldete die Finanzergebnisse für das zweite Quartal 2025 mit einem Nettoeinkommen von 2,5 Millionen US-Dollar bzw. 0,26 US-Dollar je verwässerte Aktie, im Vergleich zu 4,2 Millionen im ersten Quartal 2025 und 1,1 Millionen im zweiten Quartal 2024.
Wichtige Highlights sind: ein Anstieg der Gesamtkredite um 4,7% auf 2,54 Milliarden US-Dollar, eine Verbesserung der Nettozinsmarge um 6 Basispunkte auf 2,67% sowie ein Anstieg der Nettozinserträge auf 17,9 Millionen US-Dollar. Die Bank hielt eine starke Vermögensqualität mit notleidenden Krediten von 0,62% der Gesamtaktiva aufrecht. Das verwaltete Vermögen (AUM) wuchs um 4,5% auf 7,50 Milliarden US-Dollar, hauptsächlich aufgrund verbesserter Marktbedingungen.
Das Unternehmen zeigte solide Kapitalpositionen, wobei die Bank als "gut kapitalisiert" eingestuft wurde, und führte im Quartal Rückkäufe von 26.287 Aktien im Wert von 0,5 Millionen US-Dollar durch.
- Total loans increased by $115 million (4.7%) quarter-over-quarter to $2.54 billion
- Net interest margin improved by 6 basis points to 2.67%
- Assets Under Management (AUM) grew 4.5% to $7.50 billion
- Non-interest expense decreased by $0.3 million to $19.1 million
- Efficiency ratio improved to 78.83% from 82.25% year-over-year
- Net income decreased to $2.5 million from $4.2 million in Q1 2025
- Non-interest income declined 13.7% quarter-over-quarter to $6.3 million
- Provision for credit losses increased to $1.77 million from $80,000 in Q1 2025
- Non-performing assets increased to 0.62% of total assets from 0.59% in Q1 2025
Insights
First Western shows moderate growth with improving loan portfolio and margins despite significant decline in quarterly earnings.
First Western Financial's Q2 2025 results present a mixed performance with several positive operational trends alongside a substantial earnings decline. Net income available to shareholders fell to
The bank demonstrated strong loan growth, with total loans increasing
The significant earnings decline was primarily attributable to a substantial increase in provision for credit losses, which jumped to
On the positive side, the bank maintained disciplined expense management, reducing non-interest expenses by
Asset quality metrics showed some deterioration, with non-performing assets increasing to
Second Quarter 2025 Summary
- Total loans increased
$115 million , or4.7% , from$2.43 billion as of Q1 2025 to$2.54 billion as of Q2 2025 - Net interest margin increased 6 basis points from
2.61% in Q1 2025 to2.67% in Q2 2025 - Net interest income increased
$0.4 million from$17.5 million in Q1 2025 to$17.9 million in Q2 2025 - Non-interest expense decreased
$0.3 million from$19.4 million in Q1 2025 to$19.1 million in Q2 2025 - Net income available to common shareholders of
$2.5 million , or$0.26 per diluted share, in Q2 2025
DENVER, July 24, 2025 (GLOBE NEWSWIRE) -- First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the second quarter ended June 30, 2025.
Net income available to common shareholders was
Scott C. Wylie, CEO of First Western, commented, “We executed well in the second quarter and saw positive trends in many areas including loan and deposit growth, an expansion in our net interest margin, well managed expenses, and stable asset quality. We were able to redeploy the cash from the sale of our two largest OREO properties into loan production and securities purchases, which positively impacted our net interest margin. While maintaining our disciplined underwriting and pricing criteria, we had a very strong quarter of loan production, which was well diversified across our markets and loan portfolios. Our strong loan production reflects the healthy economic conditions we continue to see across our markets, as well as the contribution of banking talent we have added over the past few years.
“Our loan and deposit pipelines remain healthy and we expect to see solid balance sheet growth over the second half of the year, along with continued expansion in our net interest margin while we continue to maintain tight expense control. We believe this will continue to result in solid financial performance for our shareholders as we move through the year,” said Mr. Wylie.
| For the Three Months Ended | |||||||||||
| June 30, | March 31, | June 30, | |||||||||
| (Dollars in thousands, except per share data) | 2025 | 2025 | 2024 | ||||||||
| Earnings Summary | |||||||||||
| Net interest income | $ | 17,884 | $ | 17,453 | $ | 15,778 | |||||
| Provision for credit losses | 1,773 | 80 | 2,334 | ||||||||
| Total non-interest income | 6,305 | 7,345 | 6,972 | ||||||||
| Total non-interest expense | 19,099 | 19,361 | 19,001 | ||||||||
| Income before income taxes | 3,317 | 5,357 | 1,415 | ||||||||
| Income tax expense | 814 | 1,172 | 339 | ||||||||
| Net income available to common shareholders | 2,503 | 4,185 | 1,076 | ||||||||
| Basic earnings per common share | 0.26 | 0.43 | 0.11 | ||||||||
| Diluted earnings per common share | 0.26 | 0.43 | 0.11 | ||||||||
| Return on average assets (annualized) | 0.36 | % | 0.59 | % | 0.15 | % | |||||
| Return on average shareholders' equity (annualized) | 3.90 | 6.63 | 1.73 | ||||||||
| Return on tangible common equity (annualized)(1) | 4.40 | 7.44 | 2.00 | ||||||||
| Net interest margin | 2.67 | 2.61 | 2.35 | ||||||||
| Efficiency ratio(1) | 78.83 | 79.16 | 82.25 | ||||||||
____________________
(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 2025
Revenue
Total income before non-interest expense was
(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 2025 increased 6 basis points to
The yield on interest-earning assets increased 4 basis points to
Relative to the second quarter of 2024, net interest margin increased 32 basis points from
Net Interest Income
Net interest income for the second quarter of 2025 was
Non-interest Income
Non-interest income for the second quarter of 2025 was
Relative to the second quarter of 2024, non-interest income decreased
Non-interest Expense
Non-interest expense for the second quarter of 2025 was
Relative to the second quarter of 2024, non-interest expense increased
The Company’s efficiency ratio(1) was
(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
Loans
Total loans held for investment were
Deposits
Total deposits were
Borrowings
Federal Home Loan Bank (“FHLB”) and Federal Reserve borrowings were a combined
Subordinated notes were
Assets Under Management
Assets Under Management (“AUM”) was
Credit Quality
Non-performing assets totaled
Non-performing loans totaled
During the second quarter of 2025, the Company recorded provision expense of
Capital
As of June 30, 2025, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of June 30, 2025, the Bank was classified as “well capitalized,” as summarized in the following table:
| June 30, | ||
| 2025 | ||
| Consolidated Capital | ||
| Tier 1 capital to risk-weighted assets | 9.96 | % |
| Common Equity Tier 1 ("CET1") to risk-weighted assets | 9.96 | |
| Total capital to risk-weighted assets | 12.67 | |
| Tier 1 capital to average assets | 8.31 | |
| Bank Capital | ||
| Tier 1 capital to risk-weighted assets | 11.36 | % |
| CET1 to risk-weighted assets | 11.36 | |
| Total capital to risk-weighted assets | 12.13 | |
| Tier 1 capital to average assets | 9.49 | |
Book value per common share increased
Tangible book value per common share(1) increased
During the three months ended June 30, 2025, the Company repurchased 26,287 shares for
(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 25, 2025. Telephone access: https://register-conf.media-server.com/register/BI4e9784b7b6ee4a528ae8f3affe52d2ee.
A slide presentation relating to the second 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.
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.
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
| 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) | 2025 | 2025 | 2024 | ||||||
| Interest and dividend income: | |||||||||
| Loans, including fees | $ | 35,085 | $ | 34,068 | $ | 35,275 | |||
| Loans accounted for under the fair value option | 85 | 111 | 168 | ||||||
| Investment securities | 819 | 681 | 651 | ||||||
| Interest-bearing deposits in other financial institutions | 1,356 | 2,221 | 1,855 | ||||||
| Dividends, restricted stock | 155 | 128 | 105 | ||||||
| Total interest and dividend income | 37,500 | 37,209 | 38,054 | ||||||
| Interest expense: | |||||||||
| Deposits | 18,208 | 18,516 | 20,848 | ||||||
| Other borrowed funds | 1,408 | 1,240 | 1,428 | ||||||
| Total interest expense | 19,616 | 19,756 | 22,276 | ||||||
| Net interest income | 17,884 | 17,453 | 15,778 | ||||||
| Less: Provision for credit losses | 1,773 | 80 | 2,334 | ||||||
| Net interest income, after provision for credit losses | 16,111 | 17,373 | 13,444 | ||||||
| Non-interest income: | |||||||||
| Trust and investment management fees | 4,512 | 4,677 | 4,875 | ||||||
| Net gain on mortgage loans | 1,187 | 1,067 | 1,820 | ||||||
| Net gain on loans held for sale | — | 222 | — | ||||||
| Bank fees | 293 | 422 | 327 | ||||||
| Risk management and insurance fees | 47 | 259 | 109 | ||||||
| Income on company-owned life insurance | 112 | 110 | 106 | ||||||
| Net gain (loss) on loans accounted for under the fair value option | 26 | 6 | (315 | ) | |||||
| Net gain on other real estate owned | — | 459 | — | ||||||
| Unrealized gain (loss) recognized on equity securities | 3 | 11 | (2 | ) | |||||
| Other | 125 | 112 | 52 | ||||||
| Total non-interest income | 6,305 | 7,345 | 6,972 | ||||||
| Total income before non-interest expense | 22,416 | 24,718 | 20,416 | ||||||
| Non-interest expense: | |||||||||
| Salaries and employee benefits | 11,019 | 11,480 | 11,097 | ||||||
| Occupancy and equipment | 2,224 | 2,210 | 2,080 | ||||||
| Professional services | 1,855 | 1,704 | 1,826 | ||||||
| Technology and information systems | 1,030 | 1,078 | 1,042 | ||||||
| Data processing | 1,166 | 1,122 | 1,101 | ||||||
| Marketing | 267 | 216 | 243 | ||||||
| Amortization of other intangible assets | 52 | 51 | 56 | ||||||
| Other | 1,486 | 1,500 | 1,556 | ||||||
| Total non-interest expense | 19,099 | 19,361 | 19,001 | ||||||
| Income before income taxes | 3,317 | 5,357 | 1,415 | ||||||
| Income tax expense | 814 | 1,172 | 339 | ||||||
| Net income available to common shareholders | $ | 2,503 | $ | 4,185 | $ | 1,076 | |||
| Earnings per common share: | |||||||||
| Basic | $ | 0.26 | $ | 0.43 | $ | 0.11 | |||
| Diluted | 0.26 | 0.43 | 0.11 | ||||||
| First Western Financial, Inc. Condensed Consolidated Balance Sheets (unaudited) | |||||||||||
| June 30, | March 31, | June 30, | |||||||||
| (dollars in thousands) | 2025 | 2025 | 2024 | ||||||||
| Assets | |||||||||||
| Cash and cash equivalents: | |||||||||||
| Cash and due from banks | $ | 12,353 | $ | 15,924 | $ | 6,374 | |||||
| Interest-bearing deposits in other financial institutions | 219,961 | 255,658 | 239,425 | ||||||||
| Total cash and cash equivalents | 232,314 | 271,582 | 245,799 | ||||||||
| Held-to-maturity debt securities (fair value of | 99,825 | 73,775 | 78,927 | ||||||||
| Correspondent bank stock, at cost | 11,254 | 5,968 | 10,804 | ||||||||
| Mortgage loans held for sale, at fair value | 24,151 | 10,557 | 26,856 | ||||||||
| Loans (includes | 2,540,096 | 2,425,367 | 2,456,063 | ||||||||
| Allowance for credit losses | (18,994 | ) | (17,956 | ) | (27,319 | ) | |||||
| Loans, net | 2,521,102 | 2,407,411 | 2,428,744 | ||||||||
| Premises and equipment, net | 24,488 | 24,554 | 24,657 | ||||||||
| Accrued interest receivable | 10,783 | 10,623 | 11,339 | ||||||||
| Accounts receivable | 4,435 | 4,505 | 5,118 | ||||||||
| Other receivables | 4,915 | 4,608 | 4,875 | ||||||||
| Other real estate owned, net | 4,385 | 4,385 | 11,421 | ||||||||
| Goodwill and other intangible assets, net | 31,524 | 31,576 | 31,741 | ||||||||
| Deferred tax assets, net | 2,809 | 2,856 | 6,123 | ||||||||
| Company-owned life insurance | 17,184 | 17,071 | 16,741 | ||||||||
| Other assets | 37,628 | 36,829 | 34,410 | ||||||||
| Total assets | $ | 3,026,797 | $ | 2,906,300 | $ | 2,937,555 | |||||
| Liabilities | |||||||||||
| Deposits: | |||||||||||
| Noninterest-bearing | $ | 361,656 | $ | 409,696 | $ | 396,702 | |||||
| Interest-bearing | 2,167,473 | 2,105,701 | 2,014,190 | ||||||||
| Total deposits | 2,529,129 | 2,515,397 | 2,410,892 | ||||||||
| Borrowings: | |||||||||||
| Federal Home Loan Bank and Federal Reserve borrowings | 163,416 | 51,612 | 191,505 | ||||||||
| Subordinated notes | 44,673 | 44,621 | 52,451 | ||||||||
| Accrued interest payable | 1,406 | 2,371 | 2,243 | ||||||||
| Other liabilities | 29,326 | 35,744 | 33,589 | ||||||||
| Total liabilities | 2,767,950 | 2,649,745 | 2,690,680 | ||||||||
| Shareholders’ Equity | |||||||||||
| Total shareholders’ equity | 258,847 | 256,555 | 246,875 | ||||||||
| Total liabilities and shareholders’ equity | $ | 3,026,797 | $ | 2,906,300 | $ | 2,937,555 | |||||
| First Western Financial, Inc. Consolidated Financial Summary (unaudited) | |||||||||||
| June 30, | March 31, | June 30, | |||||||||
| (dollars in thousands) | 2025 | 2025 | 2024 | ||||||||
| Loan Portfolio | |||||||||||
| Cash, Securities, and Other | $ | 161,725 | $ | 101,078 | $ | 143,720 | |||||
| Consumer and Other | 15,778 | 16,688 | 15,645 | ||||||||
| Construction and Development | 255,870 | 291,133 | 309,146 | ||||||||
| 1-4 Family Residential | 1,012,662 | 971,179 | 904,569 | ||||||||
| Non-Owner Occupied CRE | 655,954 | 636,820 | 609,790 | ||||||||
| Owner Occupied CRE | 196,692 | 182,417 | 189,353 | ||||||||
| Commercial and Industrial | 239,278 | 223,197 | 277,973 | ||||||||
| Total | 2,537,959 | 2,422,512 | 2,450,196 | ||||||||
| Loans accounted for under the fair value option | 5,235 | 6,280 | 10,494 | ||||||||
| Total loans held for investment | 2,543,194 | 2,428,792 | 2,460,690 | ||||||||
| Deferred (fees) costs and unamortized premiums/(unaccreted discounts), net(1) | (3,098 | ) | (3,425 | ) | (4,627 | ) | |||||
| Loans (includes | $ | 2,540,096 | $ | 2,425,367 | $ | 2,456,063 | |||||
| Mortgage loans held for sale | 24,151 | 10,557 | 26,856 | ||||||||
| Deposit Portfolio | |||||||||||
| Money market deposit accounts | $ | 1,632,997 | $ | 1,566,737 | $ | 1,342,753 | |||||
| Time deposits | 397,006 | 379,533 | 519,597 | ||||||||
| Interest checking accounts | 123,967 | 144,980 | 135,759 | ||||||||
| Savings accounts | 13,503 | 14,451 | 16,081 | ||||||||
| Total interest-bearing deposits | 2,167,473 | 2,105,701 | 2,014,190 | ||||||||
| Noninterest-bearing accounts | 361,656 | 409,696 | 396,702 | ||||||||
| Total deposits | $ | 2,529,129 | $ | 2,515,397 | $ | 2,410,892 | |||||
____________________
(1) Includes fair value adjustments on loans held for investment accounted for under the fair value option.
| 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) | 2025 | 2025 | 2024 | ||||||||
| Average Balance Sheets | |||||||||||
| Assets | |||||||||||
| Interest-earning assets: | |||||||||||
| Interest-bearing deposits in other financial institutions | $ | 121,950 | $ | 198,294 | $ | 141,600 | |||||
| Debt securities | 85,739 | 75,592 | 75,461 | ||||||||
| Correspondent bank stock | 7,199 | 5,806 | 4,801 | ||||||||
| Gross loans | 2,443,758 | 2,407,482 | 2,443,937 | ||||||||
| Mortgage loans held for sale | 18,803 | 13,593 | 20,254 | ||||||||
| Loans held at fair value | 5,690 | 6,846 | 11,314 | ||||||||
| Total interest-earning assets | 2,683,139 | 2,707,613 | 2,697,367 | ||||||||
| Noninterest-earning assets | 126,397 | 145,479 | 119,247 | ||||||||
| Total assets | $ | 2,809,536 | $ | 2,853,092 | $ | 2,816,614 | |||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Interest-bearing liabilities: | |||||||||||
| Interest-bearing deposits | $ | 2,047,570 | $ | 2,090,505 | $ | 2,001,691 | |||||
| FHLB and Federal Reserve borrowings | 75,362 | 51,885 | 67,196 | ||||||||
| Subordinated notes | 44,639 | 52,495 | 52,414 | ||||||||
| Total interest-bearing liabilities | 2,167,571 | 2,194,885 | 2,121,301 | ||||||||
| Noninterest-bearing liabilities: | |||||||||||
| Noninterest-bearing deposits | 352,391 | 363,922 | 412,741 | ||||||||
| Other liabilities | 32,794 | 41,656 | 34,051 | ||||||||
| Total noninterest-bearing liabilities | 385,185 | 405,578 | 446,792 | ||||||||
| Total shareholders’ equity | 256,780 | 252,629 | 248,521 | ||||||||
| Total liabilities and shareholders’ equity | $ | 2,809,536 | $ | 2,853,092 | $ | 2,816,614 | |||||
| Yields/Cost of funds (annualized) | |||||||||||
| Interest-bearing deposits in other financial institutions | 4.46 | % | 4.54 | % | 5.27 | % | |||||
| Debt securities | 3.83 | 3.65 | 3.47 | ||||||||
| Correspondent bank stock | 8.64 | 8.94 | 8.80 | ||||||||
| Loans | 5.71 | 5.71 | 5.75 | ||||||||
| Loan held at fair value | 5.99 | 6.58 | 5.97 | ||||||||
| Mortgage loans held for sale | 6.61 | 5.46 | 6.83 | ||||||||
| Total interest-earning assets | 5.61 | 5.57 | 5.67 | ||||||||
| Interest-bearing deposits | 3.57 | 3.59 | 4.19 | ||||||||
| Total deposits | 3.04 | 3.06 | 3.47 | ||||||||
| FHLB and Federal Reserve borrowings | 4.14 | 3.92 | 4.14 | ||||||||
| Subordinated notes | 5.66 | 5.70 | 5.66 | ||||||||
| Total interest-bearing liabilities | 3.63 | 3.65 | 4.22 | ||||||||
| Net interest margin | 2.67 | 2.61 | 2.35 | ||||||||
| Net interest rate spread | 1.98 | 1.92 | 1.45 | ||||||||
| 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) | 2025 | 2025 | 2024 | ||||||||
| Asset Quality | |||||||||||
| Non-performing loans | $ | 14,394 | $ | 12,758 | $ | 37,909 | |||||
| Non-performing assets | 18,779 | 17,143 | 49,330 | ||||||||
| Net charge-offs (recoveries) | 657 | 566 | (9 | ) | |||||||
| Non-performing loans to total loans | 0.57 | % | 0.53 | % | 1.54 | % | |||||
| Non-performing assets to total assets | 0.62 | 0.59 | 1.68 | ||||||||
| Allowance for credit losses to non-performing loans | 131.96 | 140.74 | 72.06 | ||||||||
| Allowance for credit losses to total loans | 0.75 | 0.74 | 1.11 | ||||||||
| Net charge-offs to average loans | 0.03 | 0.02 | * | ||||||||
| Assets Under Management | $ | 7,497,361 | $ | 7,176,624 | $ | 7,011,796 | |||||
| Market Data | |||||||||||
| Book value per share at period end | $ | 26.64 | $ | 26.44 | $ | 25.55 | |||||
| Tangible book value per common share(1) | 23.39 | 23.18 | 22.27 | ||||||||
| Weighted average outstanding shares, basic | 9,707,924 | 9,704,419 | 9,647,345 | ||||||||
| Weighted average outstanding shares, diluted | 9,809,321 | 9,798,591 | 9,750,667 | ||||||||
| Shares outstanding at period end | 9,717,922 | 9,704,320 | 9,660,549 | ||||||||
| Consolidated Capital | |||||||||||
| Tier 1 capital to risk-weighted assets | 9.96 | % | 10.35 | % | 9.92 | % | |||||
| CET1 to risk-weighted assets | 9.96 | 10.35 | 9.92 | ||||||||
| Total capital to risk-weighted assets | 12.67 | 13.15 | 13.44 | ||||||||
| Tier 1 capital to average assets | 8.31 | 8.12 | 7.91 | ||||||||
| Bank Capital | |||||||||||
| Tier 1 capital to risk-weighted assets | 11.36 | % | 11.76 | % | 11.22 | % | |||||
| CET1 to risk-weighted assets | 11.36 | 11.76 | 11.22 | ||||||||
| Total capital to risk-weighted assets | 12.13 | 12.52 | 12.35 | ||||||||
| Tier 1 capital to average assets | 9.49 | 9.24 | 8.95 | ||||||||
____________________
(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.
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) | 2025 | 2025 | 2024 | ||||||||
| Tangible Common | |||||||||||
| Total shareholders' equity | $ | 258,847 | $ | 256,555 | $ | 246,875 | |||||
| Less: goodwill and other intangibles, net | 31,524 | 31,576 | 31,741 | ||||||||
| Tangible common equity | $ | 227,323 | $ | 224,979 | $ | 215,134 | |||||
| Common shares outstanding, end of period | 9,717,922 | 9,704,320 | 9,660,549 | ||||||||
| Tangible common book value per share | $ | 23.39 | $ | 23.18 | $ | 22.27 | |||||
| Net income available to common shareholders | 2,503 | 4,185 | 1,076 | ||||||||
| Return on tangible common equity (annualized) | 4.40 | % | 7.44 | % | 2.00 | % | |||||
| Efficiency | |||||||||||
| Non-interest expense | $ | 19,099 | $ | 19,361 | $ | 19,001 | |||||
| Less: OREO expenses and write-downs | 53 | (80 | ) | 29 | |||||||
| Adjusted non-interest expense | $ | 19,046 | $ | 19,441 | $ | 18,972 | |||||
| Total income before non-interest expense | $ | 22,416 | $ | 24,718 | $ | 20,416 | |||||
| Less: unrealized gain (loss) recognized on equity securities | 3 | 11 | (2 | ) | |||||||
| Less: net gain (loss) on loans accounted for under the fair value option | 26 | 6 | (315 | ) | |||||||
| Less: net gain on loans held for sale | — | 222 | — | ||||||||
| Plus: provision for credit losses | 1,773 | 80 | 2,334 | ||||||||
| Gross revenue | $ | 24,160 | $ | 24,559 | $ | 23,067 | |||||
| Efficiency ratio | 78.83 | % | 79.16 | % | 82.25 | % | |||||
FAQ
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