First Western Reports Third Quarter 2026 Financial Results

Loan and deposit growth accompanied higher wholesale borrowings, while non-performing assets declined from the previous quarter.

Rhea-AI Summary

First Western Financial (MYFW) reported third-quarter 2026 net income available to common shareholders of $6.0 million, improving sequentially and year over year. Diluted earnings were $0.60 per share, versus $0.57 in Q2 2026 and $0.32 a year earlier. Net interest income rose 5.5% sequentially to $23.0 million, while net interest margin widened to 2.95% from 2.90%.

Loans held for investment reached $2.81 billion, up 3.5% from June 30; deposits rose 2.5% to $2.92 billion. Non-interest income fell to $5.806 million from $6.385 million, while non-interest expense declined to $20.840 million from $21.217 million. Credit-loss provisions were $647,000, versus a $469,000 release in Q2. Non-performing assets declined to $13.3 million from $16.3 million. Federal Home Loan Bank borrowings increased to $150.9 million from $36.4 million. The bank remained classified as well capitalized.

19 points · 0 major

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Positive

• Moderate pointQ3 2026 net income of $5.981 million exceeded Q2’s $5.729 million and Q3 2025’s $3.186 million.
• Moderate pointQ3 2026 pre-tax, pre-provision income increased 14.5% sequentially to $7.9 million.
• Moderate pointSeptember 30 loans reached $2.81 billion, up 3.5% sequentially and 8.4% year over year.
• Moderate pointSeptember 30 deposits reached $2.92 billion, up 2.5% both sequentially and year over year.
• Moderate pointQ3 2026 non-GAAP gross revenue rose 2.8% sequentially and 9.9% year over year to $28.9 million.
• Moderate pointQ3 2026 efficiency ratio improved to 72.20%, versus 74.03% sequentially and 76.38% a year earlier; non-GAAP.
• Moderate pointSeptember 30 non-performing assets fell to $13.3 million, versus $16.3 million sequentially and $22.7 million a year earlier.
• Moderate pointSeptember 30 subordinated notes declined to $34.9 million after redemption of $10.0 million of notes. 3.5% of market cap
• Moderate pointSeptember 30 book value per share reached $29.48, up 2.6% sequentially and 9.5% year over year.

10 minor points

• Minor pointQ3 2026 diluted EPS of $0.60 rose from $0.57 sequentially and $0.32 a year earlier.
• Minor pointQ3 2026 net interest income rose 5.5% sequentially and 17.9% year over year to $23.0 million.
• Minor pointQ3 2026 net interest margin reached 2.95%, versus 2.90% sequentially and 2.54% a year earlier.
• Minor pointQ3 2026 earning-asset yield increased to 5.65% from 5.58% in Q2.
• Minor pointQ3 2026 tax expense fell to $1.298 million from $1.672 million sequentially, including a clean-fuel tax-credit benefit.
• Minor pointSeptember 30 non-GAAP tangible book value per share reached $26.28, up 2.9% sequentially and 11.0% year over year.
• Minor pointQ3 2026 annualized return on assets rose to 0.74%, versus 0.73% sequentially and 0.40% a year earlier.
• Minor pointQ3 2026 annualized return on equity rose to 8.39%, versus 8.28% sequentially and 4.92% a year earlier.
• Minor pointQ3 2026 annualized non-GAAP return on tangible common equity reached 9.31%, versus 9.19% sequentially and 5.54% a year earlier.
• Minor pointSeptember 30 bank capital exceeded regulatory minimums; the bank was classified as well capitalized.

Negative

• Moderate pointSeptember 30 FHLB borrowings rose to $150.9 million, from $36.4 million sequentially and $50.9 million a year earlier.
• Moderate pointSeptember 30 assets under management fell 0.8% sequentially and 2.9% year over year to $7.21 billion.
• Minor pointQ3 2026 non-interest income fell to $5.806 million, from $6.385 million sequentially and $6.842 million a year earlier.
• Minor pointQ3 2026 credit-loss provision was $647,000, versus a $469,000 sequential release and $2.257 million expense a year earlier.
• Minor pointQ3 2026 income before non-interest expense fell 1.7% sequentially to $28.1 million, but rose 17.1% year over year.

4 minor points

• Minor pointQ3 2026 pre-tax income declined to $7.279 million from $7.401 million sequentially, but exceeded $3.965 million a year earlier.
• Minor pointQ3 2026 non-interest expense of $20.840 million fell sequentially from $21.217 million but exceeded $20.074 million a year earlier.
• Minor pointQ3 2026 cost of funds increased to 2.88% from 2.86% sequentially, but declined 35 basis points year over year.
• Minor pointSeptember 30 credit-loss allowance coverage declined to 74 basis points of total loans, from 75 basis points sequentially.

News Explained

First Western reports redeeming $10.0 million of subordinated notes during Q3; notes outstanding were $34.9 million at September 30, 2026, down from $44.8 million at June 30, 2026, leaving a lower subordinated-note balance at quarter-end.

Key Figures

Net income: $6.0 million Diluted EPS: $0.60 Net interest income: $23.0 million; up 5.5% +5 more

Net income

$6.0 million

Q3 2026; compared with $5.7 million in Q2 2026

Diluted EPS

$0.60

Q3 2026; compared with $0.57 in Q2 2026

Net interest income

$23.0 million; up 5.5%

Q3 2026 versus Q2 2026

Net interest margin

2.95%; up 5 basis points

Q3 2026 versus Q2 2026

Loans held for investment

$2.81 billion; up 3.5%

As of September 30, 2026, versus June 30, 2026

Total deposits

$2.92 billion; up 2.5%

As of September 30, 2026, versus June 30, 2026

Efficiency ratio

72.2%

Q3 2026; compared with 74.0% in Q2 2026 and 76.4% in Q3 2025

Non-performing assets

$13.3 million, or 0.39% of total assets

As of September 30, 2026; compared with 0.50% of total assets at June 30, 2026

Previous Earnings Reports

2 past events · Latest: Jul 23

Same Type 2 events

1. Jul 23

   Quarterly earnings

   24h Move

   -0.8%

   Q2 2026 results reported higher year-over-year net income and sequential net interest margin expansion.

2. Oct 23

   Quarterly earnings

   24h Move

   -1.7%

   Q3 2025 results reported net income growth from the prior quarter and higher deposits.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

net interest margin, non-performing assets, non-accrual loans, cet1, +1 more

5 terms

net interest margin financial

"Net interest margin for the third quarter of 2026 increased 5 basis points to 2.95%"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

non-performing assets financial

"Non-performing assets totaled $13.3 million, or 0.39%, of Total assets"

Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.

non-accrual loans financial

"Non-accrual loans totaled $13.3 million as of September 30, 2026"

A non-accrual loan is a loan a lender has decided is unlikely to produce the scheduled interest payments, so the lender stops counting future interest as income and may record the loan at a reduced value. Think of it like renting out a house where the tenant has stopped paying: you stop counting future rent as earnings because it’s uncertain you’ll get it. For investors, a rise in non-accrual loans signals worsening credit quality, lower reported income and higher potential losses that can weaken a bank’s capital and share price.

cet1 financial

"CET1 to risk-weighted assets | 9.76"

CET1, or Common Equity Tier 1, is a measure of a bank's core financial strength, representing its most reliable and high-quality capital, primarily made up of shareholders' equity like common stock. It acts like a financial safety buffer, helping the bank absorb losses and stay stable during economic downturns. For investors, a strong CET1 ratio indicates a bank's resilience and overall health.

gaap financial

"not measures of financial performance recognized in accordance with generally accepted accounting principles"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

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Third Quarter 2026 Summary

• Net income available to common shareholders of $6.0 million, or $0.60 per diluted share, in Q3 2026, compared to $5.7 million, or $0.57 per diluted share, in Q2 2026
• Pre-tax, pre-provision net income increased 14.5% from $6.9 million in Q2 2026 to $7.9 million in Q3 2026
• Net interest margin increased 5 basis points from 2.90% in Q2 2026 to 2.95% in Q3 2026
• Net interest income increased $1.2 million, or 5.5%, from $21.8 million in Q2 2026 to $23.0 million in Q3 2026
• Total loans held for investment increased $95.0 million, or 3.5%, from $2.72 billion in Q2 2026 to $2.81 billion in Q3 2026
• Total deposits increased $70.0 million, or 2.5%, from $2.85 billion in Q2 2026 to $2.92 billion in Q3 2026
  
  

DENVER, Oct. 22, 2026 (GLOBE NEWSWIRE) -- First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the third quarter ended September 30, 2026.

Net income available to common shareholders was $6.0 million, or $0.60 per diluted share, for the third quarter of 2026. This compares to net income of $5.7 million, or $0.57 per diluted share, for the second quarter of 2026, and net income of $3.2 million, or $0.32 per diluted share, for the third quarter of 2025.

Scott C. Wylie, CEO of First Western, commented, “Our third quarter results demonstrate continued execution and progress across our business, underscored by strong loan and deposit growth, accelerating loan production, further expansion in our net interest margin and disciplined expense management. Healthy client demand in our markets drove robust loan growth during the quarter, while continued growth in noninterest-bearing deposits reflects the strength of our relationship-based banking model and our ongoing focus on improving our funding mix. Together, these trends contributed to strong growth in net interest income and pre-provision net revenue, while asset quality remained stable.

“We remain encouraged by the strength of our loan pipeline and the opportunities we see across our markets. With continued momentum in our core banking franchise, disciplined expense management and a strong balance sheet, we believe we are well positioned to continue improving profitability and creating long-term value for our shareholders,” said Mr. Wylie.

	For the Three Months Ended
	September 30,				June 30,				September 30,
(Dollars in thousands, except per share data)	2026				2026			2025
Earnings Summary
Net interest income	$	22,960			$	21,764			$	19,454
Provision for (release of) credit losses		647				(469	)			2,257
Total non-interest income		5,806				6,385				6,842
Total non-interest expense		20,840				21,217				20,074
Income before income taxes		7,279				7,401				3,965
Income tax expense		1,298				1,672				779
Net income available to common shareholders		5,981				5,729				3,186
Basic earnings per common share		0.61				0.59				0.33
Diluted earnings per common share		0.60				0.57				0.32
Return on average assets (annualized)		0.74	%			0.73	%			0.40	%
Return on average shareholders' equity (annualized)		8.39				8.28				4.92
Return on tangible common equity (annualized)(1)		9.31				9.19				5.54
Net interest margin		2.95				2.90				2.54
Efficiency ratio(1)		72.20				74.03				76.38

____________________

⁽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 Third Quarter 2026

Revenue

Total income before non-interest expense was $28.1 million for the third quarter of 2026, a decrease of 1.7% from $28.6 million for the second quarter of 2026. Gross revenue⁽¹⁾ was $28.9 million for the third quarter of 2026, an increase of 2.8% from $28.1 million for the second quarter of 2026. Relative to the second quarter of 2026, the decrease in Total income before non-interest expense was primarily driven by an increase in Provision for credit losses and a decrease in Non-interest income, partially offset by an increase in Net interest income. Relative to the third quarter of 2025, Total income before non-interest expense increased 17.1% from $24.0 million and Gross revenue increased 9.9% from $26.3 million. 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.

⁽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 third quarter of 2026 increased 5 basis points to 2.95% from 2.90% reported in the second quarter of 2026, primarily due to an increase in yield on average interest-earning assets, partially offset by an increase in cost of funds. The yield on interest-earning assets increased 7 basis points to 5.65% from 5.58% reported in the second quarter of 2026, while the cost of funds increased 2 basis points to 2.88% from 2.86% reported in the second quarter of 2026. The increase in yield on interest-earning assets was primarily driven by an increase in loan yields. The increase in cost of funds was primarily driven by higher cost of deposits as a result of higher rates on money market accounts.

Relative to the third quarter of 2025, net interest margin increased 41 basis points from 2.54% due to a 35 basis point decrease in cost of funds as a result of the lower interest rate environment and an increase in yield on average interest-earning assets.

Net Interest Income

Net interest income for the third quarter of 2026 was $23.0 million, an increase of 5.5% from $21.8 million for the second quarter of 2026. The increase was primarily driven by a 5 basis point increase in net interest margin and an $81.1 million increase in average interest-earning assets. Relative to the third quarter of 2025, Net interest income increased 17.9% from $19.5 million. The increase compared to the third quarter of 2025 was primarily driven by a 41 basis point increase in net interest margin and an increase in average interest-earning assets.

Non-interest Income

Non-interest income for the third quarter of 2026 was $5.8 million, a decrease of 9.4% from $6.4 million in the second quarter of 2026. The decrease was primarily driven by decreases in Net gain on mortgage loans and Bank fees, partially offset by an increase in Trust and investment management fees. The decrease in Net gain on mortgage loans was primarily driven by lower origination volume. The decrease in Bank fees was primarily driven by lower prepayment penalty and swap income.

Relative to the third quarter of 2025, Non-interest income decreased $1.0 million, primarily driven by a decrease in Net gain on mortgage loans primarily driven by lower origination volume.

Non-interest Expense

Non-interest expense for the third quarter of 2026 was $20.8 million, a decrease of 1.9% from $21.2 million in the second quarter of 2026. The decrease was primarily driven by reduced Salaries and employee benefits and Technology and information systems, partially offset by an increase in Occupancy and equipment. The decrease in Salaries and employee benefits was primarily driven by reduced employer payroll taxes. The decrease 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 recorded in the second quarter of 2026. The increase in Occupancy and equipment was driven by an increase in variable lease costs.

Relative to the third quarter of 2025, Non-interest expense increased 3.5% from $20.1 million, primarily driven by an increase in Salaries and employee benefits due to an increase in headcount, partially offset by a decrease in bonus accruals.

The Company’s efficiency ratio⁽¹⁾ was 72.2% in the third quarter of 2026, compared to 74.0% in the second quarter of 2026 and 76.4% in the third 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 $1.3 million for the third quarter of 2026, compared to $1.7 million for the second quarter of 2026, and $0.8 million for the third quarter of 2025. Relative to the second quarter of 2026, tax expense decreased $0.4 million primarily due to a $0.4 million benefit from a clean fuel tax credit purchased during the third quarter of 2026.

Loans

Total loans held for investment were $2.81 billion as of September 30, 2026, an increase of $95.0 million, or 3.5%, from $2.72 billion as of June 30, 2026. Changes in the quarter included growth in the 1-4 family residential and Commercial and industrial portfolios. Relative to the third quarter of 2025, total loans held for investment increased 8.4% from $2.59 billion as of September 30, 2025, primarily driven by growth in 1-4 family residential, Commercial and industrial, Owner occupied commercial real estate and Non-owner occupied commercial real estate portfolio.

Deposits

Total deposits were $2.92 billion as of September 30, 2026, an increase of 2.5%, from $2.85 billion as of June 30, 2026. Relative to the third quarter of 2025, Total deposits increased 2.5% from $2.85 billion. The increase over both periods was primarily driven by increases in Noninterest-bearing accounts and money market deposit accounts.

Borrowings

Federal Home Loan Bank (“FHLB”) borrowings were $150.9 million as of September 30, 2026, an increase of $114.5 million from $36.4 million as of June 30, 2026. The increase when compared to June 30, 2026 was primarily driven by interest-earning asset growth. Relative to the third quarter of 2025, borrowings increased $100.0 million from $50.9 million, driven by interest-earning asset growth.

Subordinated notes were $34.9 million as of September 30, 2026, compared to $44.8 million as of June 30, 2026. Subordinated notes decreased $9.8 million from $44.7 million as of September 30, 2025. Relative to the second quarter of 2026 and third quarter of 2025, the decrease was due to the redemption of $10.0 million of subordinated notes.

Assets Under Management

Assets Under Management (“AUM”) was $7.21 billion as of September 30, 2026, a decrease of $61 million, or 0.8%, from $7.28 billion as of June 30, 2026. The decrease in AUM during the quarter was primarily attributable to lower market values in low fee account types. Compared to September 30, 2025, total AUM decreased 2.9% from $7.43 billion due to lower market values in low fee account types, partially offset by increased net contributions.

Credit Quality

Non-performing assets totaled $13.3 million, or 0.39%, of Total assets as of September 30, 2026, compared to $16.3 million, or 0.50%, of Total assets, as of June 30, 2026. As of September 30, 2025, non-performing assets totaled $22.7 million, or 0.70%, of Total assets. Relative to the second quarter of 2026, the decrease in non-performing assets was driven by paydowns and a charge-off. Relative to the third quarter of 2025, the decrease in non-performing assets was driven by the sale of an OREO property in the first quarter of 2026 and paydowns.

Non-accrual loans totaled $13.3 million as of September 30, 2026, compared to $16.3 million as of June 30, 2026. As of September 30, 2025, non-accrual loans totaled $18.3 million. Relative to the second quarter of 2026 and the third quarter of 2025, the decrease was driven primarily by paydowns.

During the third quarter of 2026, the Company recorded a provision expense of $0.6 million, compared to a provision release of $0.5 million in the second quarter of 2026, and provision expense of $2.3 million in the third quarter of 2025. The expense of $0.6 million in the third quarter of 2026 was primarily driven by loan growth. As of September 30, 2026 and June 30, 2026, the Allowance for credit losses as a percentage of Total loans was 74 basis points and 75 basis points, respectively.

Capital

As of September 30, 2026, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of September 30, 2026, the Bank was classified as “well capitalized,” as summarized in the following table:

	September 30,
	2026
Consolidated Capital
Tier 1 capital to risk-weighted assets	9.76	%
CET1 to risk-weighted assets	9.76
Total capital to risk-weighted assets	11.80
Tier 1 capital to average assets	8.08
Bank Capital
Tier 1 capital to risk-weighted assets	10.79	%
CET1 to risk-weighted assets	10.79
Total capital to risk-weighted assets	11.60
Tier 1 capital to average assets	8.92

Book value per common share increased 2.6% from $28.73 as of June 30, 2026 to $29.48 as of September 30, 2026. Book value per common share increased 9.5% from $26.92 as of September 30, 2025.

Tangible book value per common share⁽¹⁾ increased 2.9% from $25.53 as of June 30, 2026 to $26.28 as of September 30, 2026. Tangible book value per common share increased 11.0% from $23.68 as of September 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, October 23, 2026. Telephone access: https://register-conf.media-server.com/register/BI8c00cfaf86874909b3e5150dcea82eff. 

A slide presentation relating to the third 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.

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,” “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 

First Western Financial, Inc.
Condensed Consolidated Statements of Income (unaudited)

	Three Months Ended
	September 30,				June 30,				September 30,
(dollars in thousands, except per share amounts)	2026				2026				2025
Interest and dividend income:
Loans, including fees	$	40,153			$	38,967			$	37,701
Loans accounted for under the fair value option		35				23				64
Investment securities		2,819				1,845				1,387
Interest-bearing deposits in other financial institutions		834				876				3,468
Dividends, restricted stock		113				142				154
Total interest and dividend income		43,954				41,853				42,774
Interest expense:
Deposits		20,136				18,980				22,177
Other borrowed funds		858				1,109				1,143
Total interest expense		20,994				20,089				23,320
Net interest income		22,960				21,764				19,454
Less: Provision for (release of) credit losses		647				(469	)			2,257
Net interest income, after provision for credit losses		22,313				22,233				17,197
Non-interest income:
Trust and investment management fees		4,865				4,742				4,629
Net gain on mortgage loans		483				906				1,394
Bank fees		329				429				312
Risk management and insurance fees		26				112				193
Income on company-owned life insurance		121				119				116
Net (loss) gain on loans accounted for under the fair value option		(76	)			10				18
Unrealized (loss) gain recognized on equity securities		(24	)			(2	)			6
Other		82				69				174
Total non-interest income		5,806				6,385				6,842
Total income before non-interest expense		28,119				28,618				24,039
Non-interest expense:
Salaries and employee benefits		12,704				13,034				11,884
Occupancy and equipment		2,087				1,983				2,188
Professional services		1,560				1,490				1,894
Technology and information systems		1,187				1,478				951
Data processing		1,308				1,359				1,251
Marketing		419				358				351
Amortization of other intangible assets		48				48				51
Other		1,527				1,467				1,504
Total non-interest expense		20,840				21,217				20,074
Income before income taxes		7,279				7,401				3,965
Income tax expense		1,298				1,672				779
Net income available to common shareholders	$	5,981			$	5,729			$	3,186
Earnings per common share:
Basic	$	0.61			$	0.59			$	0.33
Diluted		0.60				0.57				0.32

First Western Financial, Inc.
Condensed Consolidated Balance Sheets (unaudited)

	September 30,				June 30,				September 30,
(dollars in thousands)	2026				2026				2025
Assets
Cash and cash equivalents:
Cash and due from banks	$	11,067			$	14,310			$	13,889
Interest-bearing deposits in other financial institutions		155,181				160,576				341,750
Total cash and cash equivalents		166,248				174,886				355,639
Available-for-sale debt securities, at fair value (amortized cost of $154,271, $89,745, and $49,407, respectively)		152,544				89,615				49,177
Held-to-maturity debt securities (fair value of $134,582, $112,617 and $93,589, respectively), net of allowance for credit losses of $189, $151, and $71, respectively		141,852				116,766				98,205
Correspondent bank stock, at cost		10,853				5,695				6,481
Mortgage loans held for sale, at fair value		18,989				24,675				21,806
Loans (includes $1,146, $1,758, and $4,208 measured at fair value, respectively)		2,806,245				2,711,803				2,590,846
Allowance for credit losses		(20,785	)			(20,297	)			(20,967	)
Loans, net		2,785,460				2,691,506				2,569,879
Premises and equipment, net		25,462				25,641				24,963
Accrued interest receivable		12,515				11,338				11,907
Accounts receivable		5,343				4,781				4,687
Other receivables		106				171				3,736
Other real estate owned, net		—				—				4,389
Goodwill and other intangible assets, net		31,277				31,325				31,473
Deferred tax assets, net		5,572				2,679				3,500
Company-owned life insurance		17,772				17,651				17,299
Other assets		46,849				41,277				37,283
Total assets	$	3,420,842			$	3,238,006			$	3,240,424
Liabilities
Deposits:
Noninterest-bearing	$	420,566			$	381,826			$	375,708
Interest-bearing		2,495,647				2,464,138				2,473,203
Total deposits		2,916,213				2,845,964				2,848,911
Borrowings:
Federal Home Loan Bank and Federal Reserve borrowings		150,926				36,431				50,867
Subordinated notes		34,883				44,849				44,724
Accrued interest payable		1,586				1,243				1,689
Other liabilities		29,119				28,926				32,738
Total liabilities		3,132,727				2,957,413				2,978,929
Shareholders’ Equity
Total shareholders’ equity		288,115				280,593				261,495
Total liabilities and shareholders’ equity	$	3,420,842			$	3,238,006			$	3,240,424

First Western Financial, Inc.
Consolidated Financial Summary (unaudited)

	September 30,				June 30,				September 30,
(dollars in thousands)	2026				2026				2025
Loan Portfolio
Cash, securities, and other	$	177,437			$	182,017			$	159,204
Consumer and other		19,003				19,236				12,254
Construction and development		213,256				196,954				230,600
1-4 family residential		1,133,089				1,089,697				1,041,990
Non-owner occupied CRE		762,884				768,528				728,039
Owner occupied CRE		231,988				222,514				191,239
Commercial and industrial		272,044				235,148				225,919
Total		2,809,701				2,714,094				2,589,245
Loans accounted for under the fair value option		1,157				1,774				4,319
Total loans held for investment		2,810,858				2,715,868				2,593,564
Deferred fees, unamortized premiums, basis adjustments, net(1)(2)		(4,612	)			(4,065	)			(2,718	)
Loans (includes $1,146, $1,758, and $4,208 measured at fair value, respectively)	$	2,806,246			$	2,711,803			$	2,590,846
Mortgage loans held for sale		18,989				24,675				21,806
Deposit Portfolio
Money market deposit accounts	$	2,004,098			$	1,975,295			$	1,988,336
Time deposits		354,407				353,373				349,533
Interest checking accounts		124,677				122,394				121,901
Savings accounts		12,465				13,076				13,433
Total interest-bearing deposits		2,495,647				2,464,138				2,473,203
Noninterest-bearing accounts		420,566				381,826				375,708
Total deposits	$	2,916,213			$	2,845,964			$	2,848,911

____________________
⁽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.

First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)

	As of or for the Three Months Ended
	September 30,				June 30,				September 30,
(dollars in thousands)	2026				2026				2025
Average Balance Sheets
Assets
Interest-earning assets:
Interest-bearing deposits in other financial institutions	$	88,229			$	94,533			$	307,979
Debt securities		240,811				167,993				127,154
Correspondent bank stock		5,672				7,369				7,500
Gross loans		2,735,212				2,712,366				2,562,960
Mortgage loans held for sale		16,938				22,800				26,037
Loans held at fair value		1,508				2,249				4,809
Total interest-earning assets		3,088,370				3,007,310				3,036,439
Noninterest-earning assets		125,658				121,384				124,457
Total assets	$	3,214,028			$	3,128,694			$	3,160,896
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing deposits	$	2,456,221			$	2,367,442			$	2,422,177
FHLB and Federal Reserve borrowings		18,091				41,409				51,065
Subordinated notes		41,601				44,823				44,690
Total interest-bearing liabilities		2,515,913				2,453,674				2,517,932
Noninterest-bearing liabilities:
Noninterest-bearing deposits		379,483				365,291				349,839
Other liabilities		33,486				32,898				34,072
Total noninterest-bearing liabilities		412,969				398,189				383,911
Total shareholders’ equity		285,146				276,831				259,053
Total liabilities and shareholders’ equity	$	3,214,028			$	3,128,694			$	3,160,896
Yields/Cost of funds (annualized)
Interest-bearing deposits in other financial institutions		3.75	%			3.72	%			4.47	%
Debt securities		4.64				4.41				4.33
Correspondent bank stock		7.90				7.73				8.15
Loans		5.78				5.72				5.78
Loan held at fair value		9.21				4.10				5.28
Mortgage loans held for sale		6.82				5.54				5.59
Total interest-earning assets		5.65				5.58				5.59
Interest-bearing deposits		3.25				3.22				3.63
Total deposits		2.82				2.79				3.17
FHLB and Federal Reserve borrowings		4.04				3.86				3.98
Subordinated notes		6.43				6.35				5.60
Total interest-bearing liabilities		3.31				3.28				3.67
Net interest margin		2.95				2.90				2.54
Net interest rate spread		2.34				2.30				1.92

First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)

	As of or for the Three Months Ended
	September 30,				June 30,				September 30,
(dollars in thousands, except share and per share amounts)	2026				2026				2025
Asset Quality
Non-accrual loans	$	13,253			$	16,285			$	18,293
Non-performing assets		13,253				16,285				22,682
Net charge-offs (recoveries)		118				(4	)			259
Non-accrual loans to total loans		0.47	%			0.60	%			0.71	%
Non-performing assets to total assets		0.39				0.50				0.70
Allowance for credit losses to non-accrual loans		156.83				124.64				114.62
Allowance for credit losses to total loans		0.74				0.75				0.81
Net charge-offs to average loans	*				*					0.01
Assets Under Management	$	7,214,885			$	7,275,876			$	7,433,029
Market Data
Book value per share at period end	$	29.48			$	28.73			$	26.92
Tangible book value per common share(1)	$	26.28			$	25.53			$	23.68
Weighted average outstanding shares, basic		9,769,564				9,760,529				9,717,571
Weighted average outstanding shares, diluted		9,981,863				9,949,307				9,868,742
Shares outstanding at period end		9,772,119				9,765,129				9,714,711
Consolidated Capital
Tier 1 capital to risk-weighted assets		9.76	%			9.93	%			9.80	%
CET1 to risk-weighted assets		9.76				9.93				9.80
Total capital to risk-weighted assets		11.80				12.47				12.50
Tier 1 capital to average assets		8.08				8.06				7.51
Bank Capital
Tier 1 capital to risk-weighted assets		10.79	%			11.37	%			11.20	%
CET1 to risk-weighted assets		10.79				11.37				11.20
Total capital to risk-weighted assets		11.60				12.20				12.04
Tier 1 capital to average assets		8.92				9.22				8.59

____________________
⁽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.

First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)

Reconciliations of Non-GAAP Financial Measures

	As of or for the Three Months Ended
	September 30,				June 30,				September 30,
(dollars in thousands, except share and per share amounts)	2026				2026				2025
Tangible Common
Total shareholders' equity	$	288,115			$	280,593			$	261,495
Less: goodwill and other intangibles, net		31,277				31,325				31,473
Tangible common equity	$	256,838			$	249,268			$	230,022
Common shares outstanding, end of period		9,772,119				9,765,129				9,714,711
Tangible common book value per share	$	26.28			$	25.53			$	23.68
Net income available to common shareholders		5,981				5,729				3,186
Return on tangible common equity (annualized)		9.31	%			9.19	%			5.54	%
Efficiency
Non-interest expense	$	20,840			$	21,217			$	20,074
Less: write-off of capitalized technology assets		—				380				—
Less: OREO expenses		—				5				8
Adjusted non-interest expense	$	20,840			$	20,832			$	20,066
Total income before non-interest expense	$	28,119			$	28,618			$	24,039
Less: unrealized (loss) gain recognized on equity securities		(24	)			(2	)			6
Less: net (loss) gain on loans accounted for under the fair value option		(76	)			10				18
Plus: provision for (release of) credit losses		647				(469	)			2,257
Gross revenue	$	28,866			$	28,141			$	26,272
Efficiency ratio		72.20	%			74.03	%			76.38	%

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were First Western Financial’s Q3 2026 earnings?

First Western earned $6.0 million available to common shareholders, or $0.60 per diluted share, in Q3 2026. That compares with $5.7 million, or $0.57 per diluted share, in Q2 2026 and $3.2 million, or $0.32 per diluted share, in Q3 2025.

Why did First Western Financial’s tax expense decline in Q3 2026?

A $0.4 million benefit from a purchased clean-fuel tax credit primarily drove the sequential decline in tax expense. The credit was purchased during Q3 2026.

Why did First Western Financial’s non-interest income fall in Q3 2026?

Lower mortgage-loan gains and bank fees drove the sequential decline in non-interest income, partly offset by higher trust and investment management fees. Mortgage origination volume declined, while bank fees reflected lower prepayment-penalty and swap income.

What drove First Western Financial’s lower non-interest expenses in Q3 2026?

Lower salaries and employee benefits and technology expenses drove the sequential decline in non-interest expenses, partly offset by higher occupancy and equipment expenses. Employer payroll taxes declined, and Q2 had included a $0.4 million nonrecurring technology-asset write-off. Variable lease costs increased.