First Western (NASDAQ: MYFW) Q1 2026 earnings jump on margin gains
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
First Western Financial, Inc. reported significantly stronger results for the first quarter ended March 31, 2026. Net income available to common shareholders rose to $6.2 million, or $0.63 diluted EPS, up from $3.3 million, or $0.34, in the prior quarter and $4.2 million, or $0.43, a year earlier.
Net interest margin improved to 2.81% from 2.71% in Q4 2025 and 2.61% in Q1 2025, as funding costs fell faster than asset yields. Net interest income increased to $20.9 million, while non-interest income grew to $6.7 million, helped by higher mortgage gains and risk management and insurance fees.
Total loans held for investment grew to $2.69 billion, up 1.5% from year-end, and total deposits increased to $2.84 billion, up 3.5% quarter over quarter, with notable growth in noninterest-bearing balances. Asset quality strengthened, with non-performing assets declining to $16.3 million, or 0.50% of total assets, and other real estate owned falling to zero. The allowance for credit losses stood at 0.77% of total loans, reflecting a $0.7 million provision release.
Capital levels remained solid, with the bank subsidiary classified as “well capitalized.” Book value per share increased to $28.10, and tangible book value per share rose to $24.87. Management highlighted continued momentum in loan and deposit pipelines, ongoing margin improvement efforts, disciplined expenses, and stable credit metrics as factors supporting further performance improvement through 2026.
Positive
- Strong earnings acceleration: Q1 2026 net income available to common shareholders rose to $6.2 million (EPS $0.63), up 87% from Q4 2025 and 48% from Q1 2025, reflecting improved core profitability.
- Improving balance sheet and credit quality: Loans and deposits both grew sequentially, non-performing assets fell to 0.50% of total assets, OREO was eliminated, and capital ratios and tangible book value per share continued to strengthen.
Negative
- None.
Insights
Q1 2026 shows a sharp earnings rebound driven by margin, fee, and credit tailwinds.
First Western delivered net income of $6.2 million, nearly doubling from Q4 2025, with diluted EPS at $0.63. The improvement stems from higher net interest income, stronger fee revenue, and a swing to a $0.7 million provision release, lifting pre-tax, pre-provision income to $7.4 million.
Net interest margin expanded to 2.81% as cost of funds fell to 3.30% while asset yields held around 5.54%. Loan balances grew 1.5% sequentially to $2.69 billion, and deposits rose 3.5% to $2.84 billion, including a 10% rebound in noninterest-bearing deposits, supporting balance sheet funding and earnings power.
Credit quality trends were favorable, with non-performing assets declining to 0.50% of total assets and OREO reduced to zero as of March 31, 2026. Capital ratios remain comfortably above “well capitalized” thresholds, and tangible book value per share increased 3.3% in the quarter. Subsequent filings may provide more detail on sustaining margin gains as deposit pricing and competitive dynamics evolve.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net income available to common shareholders: $6.2 million
Diluted EPS: $0.63 per share
Net interest income: $20.9 million
+5 more
8 metrics
Net income available to common shareholders
$6.2 million
Q1 2026; up from $3.3 million in Q4 2025 and $4.2 million in Q1 2025
Diluted EPS
$0.63 per share
Q1 2026; compared with $0.34 in Q4 2025 and $0.43 in Q1 2025
Net interest income
$20.9 million
Q1 2026; increased 1.5% from $20.6 million in Q4 2025
Net interest margin
2.81%
Q1 2026; up from 2.71% in Q4 2025 and 2.61% in Q1 2025
Total loans held for investment
$2.69 billion
As of March 31, 2026; up 1.5% from $2.65 billion at December 31, 2025
Total deposits
$2.84 billion
As of March 31, 2026; 3.5% higher than $2.75 billion at December 31, 2025
Non-performing assets to total assets
0.50%
As of March 31, 2026; improved from 0.62% at December 31, 2025
Efficiency ratio
73.11%
Q1 2026; better than 74.88% in Q4 2025 and 79.16% in Q1 2025
Key Terms
net interest margin, efficiency ratio, allowance for credit losses, non-performing assets, +2 more
6 terms
net interest margin financial
"Net interest margin for the first quarter of 2026 increased 10 basis points to 2.81% from 2.71% reported in the fourth quarter of 2025"
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.
efficiency ratio financial
"The Company’s efficiency ratio(1) was 73.1% in the first quarter of 2026, compared to 74.9% in the fourth quarter of 2025 and 79.2% in the first quarter of 2025"
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
allowance for credit losses financial
"As of March 31, 2026 and December 31, 2025, the Allowance for credit losses as a percentage of Total loans was 77 basis points and 81 basis points, respectively"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
non-performing assets financial
"Non-performing assets totaled $16.3 million, or 0.50% of Total assets, as of March 31, 2026"
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.
assets under management financial
"Assets Under Management (“AUM”) was $7.23 billion as of March 31, 2026, a decrease of $43 million, or 0.6%, from $7.28 billion as of December 31, 2025"
Assets under management (AUM) is the total value of all the investments that a financial company or fund is responsible for overseeing on behalf of its clients. It’s like a big bucket that shows how much money the firm is managing for people or organizations. A higher AUM often indicates a larger, more trusted company, and it can influence how much money they earn and the services they can offer.
Earnings Snapshot
Net income available to common shareholders: $6.2 million
Q1 2026
Net income available to common shareholders
$6.2 million
+87% vs. Q4 2025; +48% vs. Q1 2025
Diluted EPS
$0.63
+85% vs. Q4 2025; +47% vs. Q1 2025
Total income before non-interest expense
$28.3 million
+10.1% vs. Q4 2025; +14.6% vs. Q1 2025
Net interest margin
2.81%
+10 bps vs. Q4 2025; +20 bps vs. Q1 2025
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 23, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code: 303 .531.8100
Former name or former address, if changed since last report: Not Applicable
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | |||||
| o | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Item 2.02 Results of Operations and Financial Condition.
On April 23, 2026, First Western Financial, Inc. (the “Company”) issued a press release announcing its financial results for the first quarter ended March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 and is incorporated by reference herein.
The information in this Item 2.02, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.
Item 7.01 Regulation FD Disclosure.
The Company intends to hold an investor call and webcast to discuss its financial results for the first quarter ended March 31, 2026 on Friday, April 24, 2026, at 10:00 a.m. Mountain Time. The Company’s presentation to analysts and investors contains additional information about the Company’s financial results for the first quarter ended March 31, 2026 and is furnished as Exhibit 99.2 and is incorporated by reference herein.
The information in this Item 7.01, including Exhibit 99.2, is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit Number | Description | |||||||
| 99.1 | Press Release issued by First Western Financial, Inc. dated April 23, 2026 | |||||||
| 99.2 | First Western Financial, Inc. Earnings Presentation | |||||||
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document) | |||||||
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| FIRST WESTERN FINANCIAL, INC. | ||||||||
Date: April 23, 2026 | By: /s/ Scott C. Wylie | |||||||
| Scott C. Wylie | ||||||||
| Chairman, Chief Executive Officer and President | ||||||||
3
Exhibit 99.1
First Western Reports First Quarter 2026 Financial Results
First Quarter 2026 Summary
•Net income available to common shareholders of $6.2 million in Q1 2026, compared to $3.3 million in Q4 2025
•Diluted earnings per share of $0.63 in Q1 2026, compared to $0.34 in Q4 2025
•Net interest margin increased 10 basis points from 2.71% in Q4 2025 to 2.81% in Q1 2026
•Net interest income increased $0.3 million, or 1.5%, from $20.6 million in Q4 2025 to $20.9 million in Q1 2026
•Non-interest income increased $0.6 million, or 9.8%, from $6.1 million in Q4 2025 to $6.7 million in Q1 2026
•Total deposits increased $95 million, or 3.5%, from $2.75 billion in Q4 2025 to $2.84 billion in Q1 2026
Denver, Colo., April 23, 2026 – First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the first quarter ended March 31, 2026.
Net income available to common shareholders was $6.2 million, or $0.63 per diluted share, for the first quarter of 2026. This compares to net income of $3.3 million, or $0.34 per diluted share, for the fourth quarter of 2025, and net income of $4.2 million, or $0.43 per diluted share, for the first quarter of 2025.
Scott C. Wylie, CEO of First Western, commented, “We executed well in the first quarter and saw positive trends in many areas including loan and deposit growth, an increase in Net interest income, expansion in our net interest margin, well managed expenses, and improved asset quality, which resulted in an increase in our level of profitability. We continue to see healthy economic conditions across our markets resulting in a solid amount of loan demand that meets our disciplined underwriting and pricing criteria, while steadily adding new deposit relationships. Our improving financial performance and continued prudent balance sheet management resulted in increases in both our book value and tangible book value per share during the first quarter.
“Our loan and deposit pipelines remain strong and along with a continuation of the positive trends we are seeing in key areas, we believe we are well positioned to continue generating strong financial performance for our shareholders as we move through 2026,” said Mr. Wylie.
For the Three Months Ended | |||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||
| (Dollars in thousands, except per share data) | 2026 | 2025 | 2025 | ||||||||||||||
| Earnings Summary | |||||||||||||||||
| Net interest income | $ | 20,883 | $ | 20,577 | $ | 17,453 | |||||||||||
| (Release of) provision for credit losses | (728) | 915 | 80 | ||||||||||||||
| Total non-interest income | 6,656 | 6,079 | 7,345 | ||||||||||||||
| Total non-interest expense | 20,164 | 21,306 | 19,361 | ||||||||||||||
| Income before income taxes | 8,103 | 4,435 | 5,357 | ||||||||||||||
Income tax expense | 1,895 | 1,121 | 1,172 | ||||||||||||||
| Net income available to common shareholders | 6,208 | 3,314 | 4,185 | ||||||||||||||
| Basic earnings per common share | 0.64 | 0.34 | 0.43 | ||||||||||||||
| Diluted earnings per common share | 0.63 | 0.34 | 0.43 | ||||||||||||||
| Return on average assets (annualized) | 0.79 | % | 0.42 | % | 0.59 | % | |||||||||||
| Return on average shareholders' equity (annualized) | 9.32 | 5.06 | 6.63 | ||||||||||||||
Return on tangible common equity (annualized)(1) | 10.26 | 5.66 | 7.44 | ||||||||||||||
| Net interest margin | 2.81 | 2.71 | 2.61 | ||||||||||||||
Efficiency ratio(1) | 73.11 | 74.88 | 79.16 | ||||||||||||||
(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 First Quarter 2026
Revenue
Total income before non-interest expense was $28.3 million for the first quarter of 2026, an increase of 10.1% from $25.7 million for the fourth quarter of 2025. Gross revenue(1) was $27.6 million for the first quarter of 2026, an increase of 3.4% from $26.7 million for the fourth quarter of 2025. Relative to the fourth quarter of 2025, the increase in Total income before non-interest expense was primarily driven by a decrease in Provision for credit losses, an increase in Non-interest income, and an increase in Net interest income. Relative to the first quarter of 2025, Total income before non-interest expense increased 14.6% from $24.7 million and Gross revenue increased 12.2% from $24.6 million. Relative to the first quarter of 2025, the increase in Total income before non-interest expense was primarily driven by an increase in Net interest income and a decrease in Provision for credit losses, partially offset by a decrease in Non-interest income.
(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 first quarter of 2026 increased 10 basis points to 2.81% from 2.71% reported in the fourth quarter of 2025, primarily due to a decrease in cost of funds, partially offset by a slight decrease in yield on interest-earning assets. The cost of funds decreased 13 basis points to 2.90% from 3.03% reported in the fourth quarter of 2025, while the yield on interest-earning assets decreased 2 basis points to 5.54% from 5.56% reported in the fourth quarter of 2025. The decrease in cost of funds was primarily due to lower rates on money market and time deposit accounts as a result of the Company reducing deposit rates commensurate with the short-term rate decreases in 2025.
2
Relative to the first quarter of 2025, net interest margin increased 20 basis points from 2.61%, primarily due to a 23 basis point decrease in cost of funds, partially offset by a 3 basis point decrease in yield on interest-earning assets. The decrease in cost of funds was primarily due to lower rates on money market and time deposit accounts as a result of the Company reducing deposit rates commensurate with the short-term rate decreases in 2025.
Net Interest Income
Net interest income for the first quarter of 2026 was $20.9 million, an increase of 1.5% from $20.6 million for the fourth quarter of 2025. The increase quarter-over-quarter was primarily driven by a 10 basis point increase in net interest margin, partially offset by lower day count. Relative to the first quarter of 2025, Net interest income increased 19.4% from $17.5 million. The increase compared to the first quarter of 2025 was primarily driven by a 20 basis point increase in net interest margin and an increase in average interest-earning assets.
Non-interest Income
Non-interest income for the first quarter of 2026 was $6.7 million, an increase of 9.8% from $6.1 million in the fourth quarter of 2025. The increase was primarily driven by increases in Net gain on mortgage loans and Risk management and insurance fees. The increase in Net gain on mortgage loans was driven by higher origination volume, while the increase in Risk management and insurance fees was driven by higher new case activity.
Relative to the first quarter of 2025, Non-interest income decreased $0.7 million, primarily driven by decreases in Net gain on other real estate owned and Net gain on loans held for sale, partially offset by an increase in Net gain on mortgage loans driven by higher origination volume.
Non-interest Expense
Non-interest expense for the first quarter of 2026 was $20.2 million, a decrease of 5.2% from $21.3 million in the fourth quarter of 2025. The decrease was primarily driven by a $1.4 million Other real estate owned ("OREO") write-down recorded in the fourth quarter of 2025 and a decrease in Professional services, partially offset by an increase in Salaries and employee benefits. The increase in Salaries and employee benefits was primarily driven by payroll tax seasonality and an increase in bonus accruals as a result of improved earnings during the quarter.
Relative to the first quarter of 2025, Non-interest expense increased 4.1% from $19.4 million, primarily driven by an increase in Salaries and employee benefits due to an increase in headcount and bonus accruals, partially offset by a decrease in Occupancy and equipment.
The Company’s efficiency ratio(1) was 73.1% in the first quarter of 2026, compared to 74.9% in the fourth quarter of 2025 and 79.2% in the first 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 $1.9 million for the first quarter of 2026, compared to $1.1 million for the fourth quarter of 2025, and $1.2 million for the first quarter of 2025.
3
Loans
Total loans held for investment were $2.69 billion as of March 31, 2026, an increase of $41 million, or 1.5%, from $2.65 billion as of December 31, 2025. Changes in the quarter included growth in the 1-4 family residential and Commercial and industrial portfolios, partially offset by a decrease in Non-owner occupied commercial real estate portfolio. Relative to the first quarter of 2025, total loans held for investment increased from $2.43 billion as of March 31, 2025, primarily driven by growth in the Non-owner occupied commercial real estate, 1-4 family residential, Cash, securities, and other, Owner occupied commercial real estate, and Commercial and industrial portfolios, partially offset by a decrease in the Construction and development portfolio.
Deposits
Total deposits were $2.84 billion as of March 31, 2026, an increase of $95 million, or 3.5%, from $2.75 billion as of December 31, 2025. The increase was primarily driven by increases in Noninterest-bearing deposit accounts, money market deposit accounts, and time deposits accounts. The increase in Noninterest-bearing deposits was primarily driven by operating account fluctuations, while the increase in Interest-bearing deposits was primarily driven by growth in money market deposit accounts and time deposit accounts. Relative to the first quarter of 2025, Total deposits increased from $2.52 billion as of March 31, 2025, primarily driven by an increase in money market deposit accounts, partially offset by a decrease Noninterest-bearing deposit accounts.
Borrowings
Federal Home Loan Bank (“FHLB”) borrowings were $50.0 million as of March 31, 2026, a decrease of $12.8 million from $62.8 million as of December 31, 2025. The change when compared to December 31, 2025 was primarily driven by the pay down on the Company's FHLB line of credit in the first quarter of 2026. Relative to the first quarter of 2025, borrowings decreased $1.6 million from $51.6 million as of March 31, 2025.
Subordinated notes were $44.8 million as of March 31, 2026 and December 31, 2025. Subordinated notes increased $0.2 million from $44.6 million as of March 31, 2025.
Assets Under Management
Assets Under Management (“AUM”) was $7.23 billion as of March 31, 2026, a decrease of $43 million, or 0.6%, from $7.28 billion as of December 31, 2025. The decrease in AUM during the quarter was primarily attributable to lower market values, partially offset by new accounts. Compared to March 31, 2025, total AUM increased 0.8% from $7.18 billion.
Credit Quality
Non-performing assets totaled $16.3 million, or 0.50% of Total assets, as of March 31, 2026, compared to $19.6 million, or 0.62% of Total assets, as of December 31, 2025. The decrease in non-performing assets during the quarter was primarily driven by the sale of the Company's last remaining OREO property and pay downs. As of March 31, 2025, non-performing assets totaled $17.1 million, or 0.59% of Total assets. Relative to the first quarter of 2025, the decrease in non-performing assets was primarily driven by the sale of the OREO property in the first quarter of 2026 and pay downs, partially offset by additions to non-accrual loans. OREO decreased from $3.0 million as of December 31, 2025 to $0.0 million as of March 31, 2026 due to the sale of the Company's last remaining OREO property in the first quarter of 2026. Relative to the first quarter of 2025, OREO decreased from $4.4 million as of March 31, 2025.
Non-accrual loans totaled $16.3 million as of March 31, 2026, a decrease of $0.3 million from $16.6 million as of December 31, 2025. As of March 31, 2025, non-accrual loans totaled $12.8 million. Relative to the fourth quarter of 2025, the decrease was primarily driven by pay downs. Relative to the first quarter of 2025, the increase was primarily driven by the addition of one credit relationship, partially offset by pay downs.
4
During the first quarter of 2026, the Company recorded a provision release of $0.7 million, compared to provision of $0.9 million in the fourth quarter of 2025 and $0.1 million in the first quarter of 2025. The release of $0.7 million in the first quarter of 2026 was primarily driven by decreased provision on individually analyzed loans. As of March 31, 2026 and December 31, 2025, the Allowance for credit losses as a percentage of Total loans was 77 basis points and 81 basis points, respectively.
Capital
As of March 31, 2026, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of March 31, 2026, the Bank was classified as “well capitalized,” as summarized in the following table:
| March 31, | |||||
| 2026 | |||||
| Consolidated Capital | |||||
| Tier 1 capital to risk-weighted assets | 9.90 | % | |||
| Common Equity Tier 1 ("CET1") to risk-weighted assets | 9.90 | ||||
| Total capital to risk-weighted assets | 12.52 | ||||
| Tier 1 capital to average assets | 7.88 | ||||
| Bank Capital | |||||
| Tier 1 capital to risk-weighted assets | 11.33 | % | |||
| CET1 to risk-weighted assets | 11.33 | ||||
| Total capital to risk-weighted assets | 12.21 | ||||
| Tier 1 capital to average assets | 9.01 | ||||
Book value per common share increased 2.9% from $27.30 as of December 31, 2025 to $28.10 as of March 31, 2026. Book value per common share increased 6.3% from $26.44 as of March 31, 2025.
Tangible book value per common share(1) increased 3.3% from $24.07 as of December 31, 2025 to $24.87 as of March 31, 2026. Tangible book value per common share increased 7.3% from $23.18 as of March 31, 2025.
During the three months ended March 31, 2026, the Company repurchased 6,123 shares for $0.1 million.
(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, April 24, 2026. Telephone access: https://register-conf.media-server.com/register/BIa19f2c66af854a57b25db1c34f017817
A slide presentation relating to the first 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.
5
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include “Tangible Common Equity,” “Tangible Common Book Value per Share,” “Return on Tangible Common Equity,” “Efficiency Ratio,” and “Gross Revenue”. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies. Reconciliation of non-GAAP financial measures to GAAP financial measures are provided at the end of this press release.
6
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 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.
Tony Rossi
310-622-8221
MYFW@finprofiles.com
IR@myfw.com
7
First Western Financial, Inc.
Condensed Consolidated Statements of Income (unaudited)
| Three Months Ended | |||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||
| (dollars in thousands, except per share amounts) | 2026 | 2025 | 2025 | ||||||||||||||
| Interest and dividend income: | |||||||||||||||||
| Loans, including fees | $ | 38,125 | $ | 38,563 | $ | 34,047 | |||||||||||
| Loans accounted for under the fair value option | 39 | 51 | 111 | ||||||||||||||
Investment securities | 1,464 | 1,593 | 681 | ||||||||||||||
| Interest-bearing deposits in other financial institutions | 1,341 | 1,958 | 2,242 | ||||||||||||||
| Dividends, restricted stock | 136 | 139 | 128 | ||||||||||||||
| Total interest and dividend income | 41,105 | 42,304 | 37,209 | ||||||||||||||
| Interest expense: | |||||||||||||||||
| Deposits | 19,017 | 20,560 | 18,516 | ||||||||||||||
| Other borrowed funds | 1,205 | 1,167 | 1,240 | ||||||||||||||
| Total interest expense | 20,222 | 21,727 | 19,756 | ||||||||||||||
| Net interest income | 20,883 | 20,577 | 17,453 | ||||||||||||||
| Less: (Release of) provision for credit losses | (728) | 915 | 80 | ||||||||||||||
Net interest income, after provision for credit losses | 21,611 | 19,662 | 17,373 | ||||||||||||||
| Non-interest income: | |||||||||||||||||
| Trust and investment management fees | 4,751 | 4,634 | 4,677 | ||||||||||||||
| Net gain on mortgage loans | 1,458 | 795 | 1,067 | ||||||||||||||
| Net gain on loans held for sale | — | — | 222 | ||||||||||||||
| Bank fees | 305 | 318 | 422 | ||||||||||||||
| Risk management and insurance fees | 249 | 52 | 259 | ||||||||||||||
| Income on company-owned life insurance | 116 | 117 | 110 | ||||||||||||||
| Net (loss) gain on loans accounted for under the fair value option | (39) | (44) | 6 | ||||||||||||||
| Net (loss) gain on other real estate owned | (7) | — | 459 | ||||||||||||||
| Unrealized (loss) gain recognized on equity securities | (4) | (6) | 11 | ||||||||||||||
| Other | (173) | 213 | 112 | ||||||||||||||
| Total non-interest income | 6,656 | 6,079 | 7,345 | ||||||||||||||
| Total income before non-interest expense | 28,267 | 25,741 | 24,718 | ||||||||||||||
| Non-interest expense: | |||||||||||||||||
| Salaries and employee benefits | 12,935 | 11,735 | 11,480 | ||||||||||||||
| Occupancy and equipment | 1,903 | 1,778 | 2,232 | ||||||||||||||
| Professional services | 1,596 | 2,232 | 1,704 | ||||||||||||||
| Technology and information systems | 999 | 1,026 | 1,056 | ||||||||||||||
| Data processing | 1,186 | 1,251 | 1,122 | ||||||||||||||
| Marketing | 193 | 386 | 216 | ||||||||||||||
| Amortization of other intangible assets | 48 | 52 | 51 | ||||||||||||||
| Other | 1,304 | 2,846 | 1,500 | ||||||||||||||
| Total non-interest expense | 20,164 | 21,306 | 19,361 | ||||||||||||||
| Income before income taxes | 8,103 | 4,435 | 5,357 | ||||||||||||||
Income tax expense | 1,895 | 1,121 | 1,172 | ||||||||||||||
| Net income available to common shareholders | $ | 6,208 | $ | 3,314 | $ | 4,185 | |||||||||||
| Earnings per common share: | |||||||||||||||||
| Basic | $ | 0.64 | $ | 0.34 | $ | 0.43 | |||||||||||
| Diluted | 0.63 | 0.34 | 0.43 | ||||||||||||||
8
First Western Financial, Inc.
Condensed Consolidated Balance Sheets (unaudited)
| March 31, | December 31, | March 31, | |||||||||||||||
| (dollars in thousands) | 2026 | 2025 | 2025 | ||||||||||||||
| Assets | |||||||||||||||||
| Cash and cash equivalents: | |||||||||||||||||
| Cash and due from banks | $ | 10,907 | $ | 9,755 | $ | 15,924 | |||||||||||
| Interest-bearing deposits in other financial institutions | 253,144 | 190,526 | 257,558 | ||||||||||||||
| Total cash and cash equivalents | 264,051 | 200,281 | 273,482 | ||||||||||||||
Available-for-sale debt securities, at fair value (amortized cost of $41,937, $45,623, and $0, respectively) | 41,939 | 45,607 | — | ||||||||||||||
Held-to-maturity debt securities (fair value of $90,775, $90,635 and $67,479, respectively), net of allowance for credit losses of $83, $74, and $71, respectively | 95,030 | 94,970 | 73,775 | ||||||||||||||
| Correspondent bank stock, at cost | 6,424 | 6,764 | 5,968 | ||||||||||||||
| Mortgage loans held for sale, at fair value | 28,426 | 40,176 | 10,557 | ||||||||||||||
Loans (includes $2,468, $3,182, and $6,112 measured at fair value, respectively) | 2,690,115 | 2,650,423 | 2,425,367 | ||||||||||||||
| Allowance for credit losses | (20,801) | (21,441) | (17,956) | ||||||||||||||
| Loans, net | 2,669,314 | 2,628,982 | 2,407,411 | ||||||||||||||
| Premises and equipment, net | 25,704 | 25,687 | 24,554 | ||||||||||||||
| Accrued interest receivable | 11,582 | 11,209 | 10,623 | ||||||||||||||
| Accounts receivable | 5,461 | 4,579 | 4,505 | ||||||||||||||
| Other receivables | 1,318 | 2,444 | 4,608 | ||||||||||||||
| Other real estate owned, net | — | 3,040 | 4,385 | ||||||||||||||
| Goodwill and other intangible assets, net | 31,373 | 31,422 | 31,576 | ||||||||||||||
| Deferred tax assets, net | 3,073 | 4,003 | 2,856 | ||||||||||||||
| Company-owned life insurance | 17,532 | 17,416 | 17,071 | ||||||||||||||
| Other assets | 39,490 | 38,401 | 34,929 | ||||||||||||||
| Total assets | $ | 3,240,717 | $ | 3,154,981 | $ | 2,906,300 | |||||||||||
| Liabilities | |||||||||||||||||
| Deposits: | |||||||||||||||||
| Noninterest-bearing | $ | 380,072 | $ | 344,969 | $ | 409,696 | |||||||||||
| Interest-bearing | 2,461,543 | 2,401,606 | 2,105,701 | ||||||||||||||
| Total deposits | 2,841,615 | 2,746,575 | 2,515,397 | ||||||||||||||
| Borrowings: | |||||||||||||||||
| Federal Home Loan Bank and Federal Reserve borrowings | 50,006 | 62,841 | 51,612 | ||||||||||||||
| Subordinated notes | 44,810 | 44,772 | 44,621 | ||||||||||||||
| Accrued interest payable | 1,593 | 1,295 | 2,371 | ||||||||||||||
| Other liabilities | 29,328 | 33,938 | 35,744 | ||||||||||||||
| Total liabilities | 2,967,352 | 2,889,421 | 2,649,745 | ||||||||||||||
| Shareholders’ Equity | |||||||||||||||||
| Total shareholders’ equity | 273,365 | 265,560 | 256,555 | ||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,240,717 | $ | 3,154,981 | $ | 2,906,300 | |||||||||||
9
First Western Financial, Inc.
Consolidated Financial Summary (unaudited)
| March 31, | December 31, | March 31, | |||||||||||||||
| (dollars in thousands) | 2026 | 2025 | 2025 | ||||||||||||||
| Loan Portfolio | |||||||||||||||||
| Cash, securities, and other | $ | 164,119 | $ | 164,787 | $ | 101,078 | |||||||||||
| Consumer and other | 20,036 | 19,504 | 16,688 | ||||||||||||||
| Construction and development | 195,230 | 189,790 | 291,133 | ||||||||||||||
| 1-4 family residential | 1,069,542 | 1,030,211 | 971,179 | ||||||||||||||
| Non-owner occupied CRE | 780,279 | 813,408 | 636,820 | ||||||||||||||
| Owner occupied CRE | 212,177 | 205,063 | 182,417 | ||||||||||||||
| Commercial and industrial | 248,875 | 226,107 | 223,197 | ||||||||||||||
| Total | 2,690,258 | 2,648,870 | 2,422,512 | ||||||||||||||
| Loans accounted for under the fair value option | 2,492 | 3,216 | 6,280 | ||||||||||||||
| Total loans held for investment | 2,692,750 | 2,652,086 | 2,428,792 | ||||||||||||||
Deferred fees, unamortized premiums, basis adjustments, net(1)(2) | (2,635) | (1,663) | (3,425) | ||||||||||||||
Loans (includes $2,468, $3,182, and $6,112 measured at fair value, respectively) | $ | 2,690,115 | $ | 2,650,423 | $ | 2,425,367 | |||||||||||
| Mortgage loans held for sale | 28,426 | 40,176 | 10,557 | ||||||||||||||
| Deposit Portfolio | |||||||||||||||||
| Money market deposit accounts | $ | 1,945,207 | $ | 1,913,591 | $ | 1,566,737 | |||||||||||
| Time deposits | 371,889 | 352,473 | 379,533 | ||||||||||||||
| Interest checking accounts | 130,821 | 122,292 | 144,980 | ||||||||||||||
| Savings accounts | 13,626 | 13,250 | 14,451 | ||||||||||||||
| Total interest-bearing deposits | 2,461,543 | 2,401,606 | 2,105,701 | ||||||||||||||
| Noninterest-bearing accounts | 380,072 | 344,969 | 409,696 | ||||||||||||||
| Total deposits | $ | 2,841,615 | $ | 2,746,575 | $ | 2,515,397 | |||||||||||
____________________
(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 | |||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||
| (dollars in thousands) | 2026 | 2025 | 2025 | ||||||||||||||
| Average Balance Sheets | |||||||||||||||||
| Assets | |||||||||||||||||
| Interest-earning assets: | |||||||||||||||||
| Interest-bearing deposits in other financial institutions | $ | 145,676 | $ | 192,052 | $ | 200,194 | |||||||||||
| Debt securities | 138,537 | 143,593 | 75,592 | ||||||||||||||
| Correspondent bank stock | 6,421 | 6,342 | 5,806 | ||||||||||||||
Gross loans | 2,684,756 | 2,630,739 | 2,407,482 | ||||||||||||||
| Mortgage loans held for sale | 30,682 | 41,068 | 13,593 | ||||||||||||||
| Loans held at fair value | 2,955 | 3,799 | 6,846 | ||||||||||||||
| Total interest-earning assets | 3,009,027 | 3,017,593 | 2,709,513 | ||||||||||||||
| Noninterest-earning assets | 123,719 | 123,497 | 143,579 | ||||||||||||||
| Total assets | $ | 3,132,747 | $ | 3,141,090 | $ | 2,853,092 | |||||||||||
| Liabilities and Shareholders’ Equity | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||
| Interest-bearing deposits | $ | 2,387,214 | $ | 2,387,894 | $ | 2,090,505 | |||||||||||
| FHLB and Federal Reserve borrowings | 50,338 | 50,799 | 51,885 | ||||||||||||||
| Subordinated notes | 44,785 | 44,742 | 52,495 | ||||||||||||||
| Total interest-bearing liabilities | 2,482,337 | 2,483,435 | 2,194,885 | ||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||
| Noninterest-bearing deposits | 347,520 | 359,223 | 363,922 | ||||||||||||||
| Other liabilities | 36,459 | 36,415 | 41,656 | ||||||||||||||
| Total noninterest-bearing liabilities | 383,979 | 395,638 | 405,578 | ||||||||||||||
| Total shareholders’ equity | 266,430 | 262,017 | 252,629 | ||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,132,747 | $ | 3,141,090 | $ | 2,853,092 | |||||||||||
| Yields/Cost of funds (annualized) | |||||||||||||||||
| Interest-bearing deposits in other financial institutions | 3.73 | % | 4.04 | % | 4.54 | % | |||||||||||
| Debt securities | 4.29 | 4.40 | 3.65 | ||||||||||||||
| Correspondent bank stock | 8.59 | 8.70 | 8.94 | ||||||||||||||
| Loans | 5.70 | 5.72 | 5.70 | ||||||||||||||
| Loan held at fair value | 5.35 | 5.33 | 6.58 | ||||||||||||||
| Mortgage loans held for sale | 5.34 | 5.94 | 5.46 | ||||||||||||||
| Total interest-earning assets | 5.54 | 5.56 | 5.57 | ||||||||||||||
| Interest-bearing deposits | 3.23 | 3.42 | 3.59 | ||||||||||||||
| Total deposits | 2.82 | 2.97 | 3.06 | ||||||||||||||
| FHLB and Federal Reserve borrowings | 4.03 | 3.99 | 3.92 | ||||||||||||||
| Subordinated notes | 6.38 | 5.82 | 5.70 | ||||||||||||||
| Total interest-bearing liabilities | 3.30 | 3.47 | 3.65 | ||||||||||||||
| Net interest margin | 2.81 | 2.71 | 2.61 | ||||||||||||||
| Net interest rate spread | 2.24 | 2.09 | 1.92 | ||||||||||||||
11
First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
| As of or for the Three Months Ended | |||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||
| (dollars in thousands, except share and per share amounts) | 2026 | 2025 | 2025 | ||||||||||||||
| Asset Quality | |||||||||||||||||
| Non-accrual loans | $ | 16,324 | $ | 16,588 | $ | 12,758 | |||||||||||
| Non-performing assets | 16,324 | 19,628 | 17,143 | ||||||||||||||
| Net (recoveries) charge-offs | (20) | 401 | 566 | ||||||||||||||
| Non-accrual loans to total loans | 0.61 | % | 0.63 | % | 0.53 | % | |||||||||||
| Non-performing assets to total assets | 0.50 | 0.62 | 0.59 | ||||||||||||||
| Allowance for credit losses to non-accrual loans | 127.43 | 129.26 | 140.74 | ||||||||||||||
| Allowance for credit losses to total loans | 0.77 | 0.81 | 0.74 | ||||||||||||||
| Net charge-offs to average loans | * | 0.02 | 0.02 | ||||||||||||||
| Assets Under Management | $ | 7,234,541 | $ | 7,278,241 | $ | 7,176,624 | |||||||||||
| Market Data | |||||||||||||||||
| Book value per share at period end | $ | 28.10 | $ | 27.30 | $ | 26.44 | |||||||||||
Tangible book value per common share(1) | $ | 24.87 | $ | 24.07 | $ | 23.18 | |||||||||||
| Weighted average outstanding shares, basic | 9,733,704 | 9,719,812 | 9,704,419 | ||||||||||||||
| Weighted average outstanding shares, diluted | 9,900,420 | 9,849,323 | 9,798,591 | ||||||||||||||
| Shares outstanding at period end | 9,728,968 | 9,725,731 | 9,704,320 | ||||||||||||||
| Consolidated Capital | |||||||||||||||||
| Tier 1 capital to risk-weighted assets | 9.90 | % | 9.75 | % | 10.35 | % | |||||||||||
| CET1 to risk-weighted assets | 9.90 | 9.75 | 10.35 | ||||||||||||||
| Total capital to risk-weighted assets | 12.52 | 12.34 | 13.15 | ||||||||||||||
| Tier 1 capital to average assets | 7.88 | 7.68 | 8.12 | ||||||||||||||
| Bank Capital | |||||||||||||||||
| Tier 1 capital to risk-weighted assets | 11.33 | % | 11.15 | % | 11.76 | % | |||||||||||
| CET1 to risk-weighted assets | 11.33 | 11.15 | 11.76 | ||||||||||||||
| Total capital to risk-weighted assets | 12.21 | 11.99 | 12.52 | ||||||||||||||
| Tier 1 capital to average assets | 9.01 | 8.79 | 9.24 | ||||||||||||||
____________________
(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 | |||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||
| (dollars in thousands, except share and per share amounts) | 2026 | 2025 | 2025 | ||||||||||||||
| Tangible Common | |||||||||||||||||
| Total shareholders' equity | $ | 273,365 | $ | 265,560 | $ | 256,555 | |||||||||||
| Less: goodwill and other intangibles, net | 31,373 | 31,422 | 31,576 | ||||||||||||||
| Tangible common equity | $ | 241,992 | $ | 234,138 | $ | 224,979 | |||||||||||
| Common shares outstanding, end of period | 9,728,968 | 9,725,731 | 9,704,320 | ||||||||||||||
| Tangible common book value per share | $ | 24.87 | $ | 24.07 | $ | 23.18 | |||||||||||
| Net income available to common shareholders | 6,208 | 3,314 | 4,185 | ||||||||||||||
| Return on tangible common equity (annualized) | 10.26 | % | 5.66 | % | 7.44 | % | |||||||||||
| Efficiency | |||||||||||||||||
| Non-interest expense | $ | 20,164 | $ | 21,306 | $ | 19,361 | |||||||||||
| Less: OREO expenses and write-downs | — | 1,310 | (80) | ||||||||||||||
| Adjusted non-interest expense | $ | 20,164 | $ | 19,996 | $ | 19,441 | |||||||||||
| Total income before non-interest expense | $ | 28,267 | $ | 25,741 | $ | 24,718 | |||||||||||
| Less: unrealized (loss) gain recognized on equity securities | (4) | (6) | 11 | ||||||||||||||
| Less: net (loss) gain on loans accounted for under the fair value option | (39) | (44) | 6 | ||||||||||||||
| Less: net gain on loans held for sale | — | — | 222 | ||||||||||||||
| Plus: (release of) provision for of credit losses | (728) | 915 | 80 | ||||||||||||||
| Gross revenue | $ | 27,582 | $ | 26,706 | $ | 24,559 | |||||||||||
| Efficiency ratio | 73.11 | % | 74.88 | % | 79.16 | % | |||||||||||
13
First Quarter 2026 Conference Call
Safe Harbor 2 This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the current views of First Western Financial, Inc.’s (“First Western”) management with respect to, among other things, future events and First Western’s financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “position,” “project,” “future” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about First Western’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond First Western’s control. Accordingly, First Western cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although First Western believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. The following risks and uncertainties, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: the risk of geographic concentration in Colorado, Arizona, Wyoming, California, and Montana; the risk of changes in the economy affecting real estate values and liquidity; the risk in our ability to continue to originate residential real estate loans and sell such loans; risks specific to commercial loans and borrowers; the risk of claims and litigation pertaining to our fiduciary responsibilities; the risk of changes in interest rates could reduce our net interest margins and Net interest income; increased credit risk, including as a result of deterioration in economic conditions, could require us to increase our allowance for credit losses and could have a material adverse effect on our results of operations and financial condition; the risk in our ability to maintain a strong core deposit base or other low-cost funding sources. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on February 27, 2026 and other documents we file with the SEC from time to time. All subsequent written and oral forward-looking statements attributable to First Western or persons acting on First Western’s behalf are expressly qualified in their entirety by this paragraph. Forward-looking statements speak only as of the date of this presentation. First Western undertakes no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise (except as required by law). This presentation contains certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of this presentation. Numbers in the presentation may not sum due to rounding. Our common stock is not a deposit or savings account. Our common stock is not insured by the Federal Deposit Insurance Corporation or any governmental agency or instrumentality. Except as otherwise indicated, this presentation speaks as of the date hereof. The delivery of this presentation shall not, under any circumstances, create any implication that there has been no change in the affairs of the Company after the date hereof.
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato(regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions Overview of 1Q26 1Q26 Earnings • Net income available to common shareholders of $6.2 million, or $0.63, per diluted share • Diluted earnings per share increased 85% from the prior quarter, and 47% compared to 1Q25 • Pre-tax, pre-provision net income increased $2.0 million, or 38%, compared to 4Q25, and $1.9 million, or 36%, compared to 1Q25 • Positive trends in a number of key areas resulted in improvement in profitability from prior quarter Continued Execution on Strategic Priorities • Continued focus on prudent risk management and a conservative approach to new loan production, supported by new banking talent that is helping drive solid loan growth • Increase in loans held for investment of $41 million, or 1.5%, in 1Q26 • Success in deposit gathering efforts with increase in deposits of $95 million, or 3.5%, in 1Q26 • Positive trends in asset quality with decline in non-performing assets • Continued disciplined expense management Positive Trends in Key Metrics • Net interest income increased for the sixth consecutive quarter • Improvement in net interest margin from prior quarter primarily due to improved cost of funds • Mortgage, Trust and investment management, and Insurance fees all increased in the quarter • Further increase in tangible book value per share 3
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato(regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 4 Net Income Available to Common Shareholders and Earnings per Share • Net income of $6.2 million increased 87% from 4Q25 and 48% from 1Q25 • Diluted earnings per share of $0.63 increased 85% from 4Q25 and 47% from 1Q25 • Tangible book value per share(1) increased 3.3% from $24.07 in 4Q25 to $24.87 in 1Q26 Net Income Available to Common Shareholders Diluted Earnings per Share $4,185 $2,503 $3,186 $3,314 $6,208 1Q25 2Q25 3Q25 4Q25 1Q26 $— $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $0.43 $0.26 $0.32 $0.34 $0.63 1Q25 2Q25 3Q25 4Q25 1Q26 $— $0.20 $0.40 $0.60 $0.80 (1) See Non-GAAP reconciliation within the appendix.
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 5 Loan Portfolio • Total loans held for investment increased $40.7 million primarily due to growth in the 1-4 family residential and Commercial and industrial portfolios • Total loans held for investment increased for the fourth consecutive quarter and Total loans increased 12% year-over-year • New loan production diversified across markets and loan types • New loan production in 1Q26 of $115.8 million with a focus on relationship- based lending • Average rate on new loan production was 6.31% in 1Q26, relatively consistent with 4Q25 1Q25 4Q25 1Q26 Cash, securities and other $ 101,078 $ 164,787 $ 164,119 Consumer and other 16,688 19,504 20,036 Construction and development 291,133 189,790 195,230 1-4 family residential 971,179 1,030,211 1,069,542 Non-owner occupied CRE 636,820 813,408 780,279 Owner occupied CRE 182,417 205,063 212,177 Commercial and industrial 223,197 226,107 248,875 Total $ 2,422,512 $ 2,648,870 $ 2,690,258 Loans accounted for at fair value(2) 6,280 3,216 2,492 Total Loans HFI $ 2,428,792 $ 2,652,086 $ 2,692,750 Mortgage loans held for sale 10,557 40,176 28,426 Total Loans $ 2,439,349 $ 2,692,262 $ 2,721,176 (1) Represents unpaid principal balance. Excludes deferred fees, unamortized premiums, basis adjustments, net. (2) Excludes fair value adjustments on loans accounted for under the fair value option. ($ in thousands, as of quarter end) Loan Portfolio Composition(1) Loan Portfolio Details Loan Production & Loan Payoffs Total Loans(1) $2,428 $2,468 $2,594 $2,676 $2,718 $2,692 $2,721 1Q25 2Q25 3Q25 4Q25 1Q26 4Q25 1Q26 $1,000 $1,500 $2,000 $2,500 $3,000 Average Period End $70.8 $166.9 $145.7 $146.2 $115.8 $71.6 $122.6 $110.1 $131.3 $95.9 Production Loan Payoffs 1Q25 2Q25 3Q25 4Q25 1Q26 $0 $50 $100 $150 $200 ($ in millions) ($ in millions)
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 6 Total Deposits • Total deposits increased 3.5% from $2.75 billion in 4Q25 to $2.84 billion in 1Q26, due to growth in all deposit types • Noninterest-bearing deposits increased 10.2% from $345 million in 4Q25 to $380 million in 1Q26 primarily driven by operating account fluctuations • Interest-bearing deposits increased 2.5% from $2.40 billion in 4Q25 to $2.46 billion in 1Q26 primarily driven by growth in money market deposit accounts and time deposit accounts 1Q25 4Q25 1Q26 Money market deposit accounts $ 1,566,737 $ 1,913,591 $ 1,945,207 Time deposits 379,533 352,473 371,889 Interest checking accounts 144,980 122,292 130,821 Savings accounts 14,451 13,250 13,626 Noninterest-bearing accounts 409,696 344,969 380,072 Total Deposits $ 2,515,397 $ 2,746,575 $ 2,841,615 Deposit Portfolio Composition Total Deposits $2,454 $2,400 $2,772 $2,747 $2,735 $2,747 $2,842 1Q25 2Q25 3Q25 4Q25 1Q26 4Q25 1Q26 $1,000 $1,500 $2,000 $2,500 $3,000 Average Period End ($ in millions)($ in thousands, as of quarter end)
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 7 Trust and Investment Management • Total assets under management decreased $43 million, or 0.6%, during the quarter to $7.23 billion • The decrease in AUM from 4Q25 was primarily attributable to lower market values, partially offset by new accounts • Compared to 1Q25, AUM increased 0.8% from $7.18 billion ($ in millions, as of quarter end) Total Assets Under Management $7,177 $7,497 $7,433 $7,278 $7,235 Investment Agency Managed Trust 401(k)/Retirement Directed Trust Custody 1Q25 2Q25 3Q25 4Q25 1Q26 $— $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions (1) See Non-GAAP reconciliation within the appendix. Gross Revenue Gross Revenue(1) Gross Revenue(1) 8 $24.6 $24.2 $26.3 $26.7 $27.6 Wealth Management Mortgage 1Q25 2Q25 3Q25 4Q25 1Q26 $— $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 • Gross revenue(1) increased 3.4% from $26.7 million in 4Q25 to $27.6 million in 1Q26 • Net interest income increased 1.5% from prior quarter, primarily driven by a 10 basis point increase in net interest margin • Non-interest income increased $0.6 million from prior quarter, primarily driven by increases in Net gain on mortgage loans and Risk management and insurance fees Non-interest Income $6,656 24.2% Net Interest Income $20,883 75.8% ($ in thousands) ($ in millions)
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 9 Net Interest Income and Net Interest Margin • Net interest income increased $0.3 million, or 1.5%, from $20.6 million in 4Q25 to $20.9 million in 1Q26, primarily driven by a 10 basis point increase in net interest margin, partially offset by lower day count • Net interest margin increased 10 basis points during the quarter from 2.71% in 4Q25 to 2.81% in 1Q26, primarily due to a 13 basis point decrease in cost of funds, partially offset by a 2 basis point decrease in yield on interest-earning assets • The decrease in cost of funds was primarily due to lower rates as a result of the Company reducing deposit rates commensurate with the short-term rate decreases in 2025 • Net interest income increased 19.7% from 1Q25 primarily driven by a 20 basis point increase in net interest margin and an increase in average interest-earning assets Net Interest Income Net Interest Margin $17,453 $17,884 $19,454 $20,577 $20,883 1Q25 2Q25 3Q25 4Q25 1Q26 $— $5,000 $10,000 $15,000 $20,000 $25,000 2.61% 2.67% 2.54% 2.71% 2.81% 1Q25 2Q25 3Q25 4Q25 1Q26 —% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% ($ in thousands)
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 10 Non-Interest Income • Non-interest income increased $0.6 million, or 9.5%, to $6.7 million from prior quarter, primarily driven by increases in Net gain on mortgage loans and Risk management and insurance fees • The increase in Net gain on mortgage loans was driven by higher origination volume • The increase in Risk management and insurance fees was driven by higher new case activity • Trust and investment management fees increased for the third consecutive quarter Total Non-Interest Income Trust and Investment Management Fees $7,345 $6,305 $6,842 $6,079 $6,656 Trust and Investment Management Fees Bank Fees Net Gain on Mortgage Loans Net gain on OREO Risk Management and Insurance Fees Other 1Q25 2Q25 3Q25 4Q25 1Q26 $(2,000) $— $2,000 $4,000 $6,000 $8,000 $10,000 $4,677 $4,512 $4,629 $4,634 $4,751 1Q25 2Q25 3Q25 4Q25 1Q26 $— $2,000 $4,000 $6,000 ($ in thousands) ($ in thousands)
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 11 Non-Interest Expense and Efficiency Ratio • Non-interest expense decreased to $20.2 million from $21.3 million in the fourth quarter of 2025, primarily driven by a $1.4 million Other real estate owned ("OREO") write-down in the fourth quarter of 2025 and a decrease in Professional services, partially offset by an increase in Salaries and employee benefits • The increase in Salaries and employee benefits was primarily driven by payroll tax seasonality and an increase in bonus accruals as a result of improved earnings during the quarter • The efficiency ratio improved from 74.88% as of 4Q25 and 79.16% as of 1Q25 to 73.11% as of 1Q26 • Efficiency ratio improvement for the sixth consecutive quarter (1) See Non-GAAP reconciliation within the appendix. Adjusted Non-Interest Expense(1) Operating Efficiency Ratio(1) (1) (1) (1) $19,441 $19,046 $20,066 $19,996 $20,164 1Q25 2Q25 3Q25 4Q25 1Q26 $— $5,000 $10,000 $15,000 $20,000 $25,000 79.16% 78.83% 76.38% 74.88% 73.11% 1Q25 2Q25 3Q25 4Q25 1Q26 —% 20.00% 40.00% 60.00% 80.00% 100.00% ($ in thousands)
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 12 Asset Quality • Non-performing assets decreased $3.3 million to $16.3 million in 1Q26 primarily driven by the sale of the Company's last remaining OREO property and pay downs • Non-accrual loans decreased $0.3 million to $16.3 million in 1Q26 driven by pay downs • Zero charge-offs during the quarter • Credit event resolution on an individually analyzed loan contributed to a provision release of $0.7 million during 1Q26 • ACL/Total loans at 0.77% in 1Q26 and 0.81% 4Q25 Non-Performing Assets/Total Assets Net Charge-Offs/Average Loans 0.59% 0.62% 0.70% 0.62% 0.50% 1Q25 2Q25 3Q25 4Q25 1Q26 —% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 0.02% 0.03% 0.01% 0.02% 0.00% 1Q25 2Q25 3Q25 4Q25 1Q26 —% 0.05% 0.10% 0.15% 0.20% 0.25%
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 13 Near Term Outlook • First Western's markets continue to perform well and the strength of our balance sheet and franchise provides opportunities to capitalize on market disruption and challenges being faced by competing banks to add new clients and banking talent • New leadership added in Arizona, which represents good growth opportunities • Loan pipeline remains strong and should continue to result in solid loan growth in 2026 • Positive trends expected to continue ◦ Solid loan and deposit growth ◦ Continued expansion in net interest margin ◦ More robust business development activities in Wealth Management business ◦ Higher level of mortgage production resulting from addition of MLOs ◦ More operating leverage resulting from continued revenue growth with disciplined expense control ◦ No meaningful deterioration expected in asset quality given the trends we are seeing in the portfolio and our clients continuing to perform well • Positive trends in key areas expected to continue, which should result in steady improvement in financial performance and further value being created for shareholders
Appendix 14
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 15 Capital and Liquidity Overview Liquidity Funding Sources (as of 03/31/26) (1) See Non-GAAP reconciliation within the appendix. (2) Based on internal policy guidelines. Consolidated Capital Ratios (as of 03/31/26) Tangible Common Equity / TBV per Share(1) ($ in thousands) Liquidity Reserves: Total Available Cash $ 262,360 Unpledged Investment Securities 103,251 Borrowed Funds: Secured: FHLB Available 581,869 FRB Available 22,350 Other: Brokered Remaining Capacity 347,294 Unsecured: Credit Lines 29,000 Total Liquidity Funding Sources $ 1,346,125 Loan-to-Deposit Ratio 94.7 % 9.90% 9.90% 12.52% 7.88% Tier 1 Capital to Risk- Weighted Assets CET1 to Risk- Weighted Assets Total Capital to Risk- Weighted Assets Tier 1 Capital to Average Assets —% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% (2) (TCE $ in thousands) $130,704 $187,139 $208,760 $210,884 $220,695 $224,979 $227,323 $230,022 $234,138 $241,992 $16.44 $19.87 $21.99 $22.01 $22.83 $23.18 $23.39 $23.68 $24.07 $24.87 TCE TBV/Share 4Q20 4Q21 4Q22 4Q23 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 $— $40,000 $80,000 $120,000 $160,000 $200,000 $240,000 $280,000 $— $4 $8 $12 $16 $20 $24
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 16 Non-GAAP Reconciliation Consolidated Tangible Common Book Value Per Share (Dollars in thousands) March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 March 31, 2026 Total shareholders' equity $ 256,555 $ 258,847 $ 261,495 $ 265,560 $ 273,365 Goodwill and other intangibles, net 31,576 31,524 31,473 31,422 31,373 Tangible common equity $ 224,979 $ 227,323 $ 230,022 $ 234,138 $ 241,992 Common shares outstanding, end of period 9,704,320 9,717,922 9,714,711 9,725,731 9,728,968 Tangible common book value per share $ 23.18 $ 23.39 $ 23.68 $ 24.07 $ 24.87 Net income available to common shareholders $ 6,208 Return on tangible common equity (annualized) 10.26 % Consolidated Efficiency Ratio For the Three Months Ended, (Dollars in thousands) March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 March 31, 2026 Non-interest expense $ 19,361 $ 19,099 $ 20,074 $ 21,306 $ 20,164 Less: OREO expenses and write-downs (80) 53 8 1,310 — Adjusted non-interest expense $ 19,441 $ 19,046 $ 20,066 $ 19,996 $ 20,164 Net interest income $ 17,453 $ 17,884 $ 19,454 $ 20,577 $ 20,883 Non-interest income 7,345 6,305 6,842 6,079 6,656 Less: unrealized gain (loss) recognized on equity securities 11 3 6 (6) (4) Less: net gain (loss) on loans accounted for under the fair value option 6 26 18 (44) (39) Less: net gain on loans held for sale 222 — — — — Adjusted non-interest income $ 7,106 $ 6,276 $ 6,818 $ 6,129 $ 6,699 Adjusted total income $ 24,559 $ 24,160 $ 26,272 $ 26,706 $ 27,582 Efficiency ratio 79.16 % 78.83 % 76.38 % 74.88 % 73.11 %
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 17 Non-GAAP Reconciliation Pre-tax, Pre-Provision Net Income For the Three Months Ended, (Dollars in thousands) March 31, 2025 December 31, 2025 March 31, 2026 Income before income taxes $ 5,357 $ 4,435 $ 8,103 Plus: provision for (release of) credit losses 80 915 (728) Pre-tax, pre-provision net income $ 5,437 $ 5,350 $ 7,375 Allocation of the Allowance for Credit Losses (ACL) As of March 31, 2026 December 31, 2025 (Dollars in thousands) ACL Amount % of Loans % of ACL %(1) ACL Amount % of Loans % of ACL %(1) Commercial: Construction and Development $ 2,198 1.1 % 10.6 % 7.3 % $ 2,210 1.2 % 10.3 % 7.2 % Non-Owner Occupied CRE 4,150 0.5 20.0 29.0 4,359 0.5 20.4 30.7 Owner Occupied CRE 853 0.4 4.1 7.9 846 0.4 3.9 7.7 Commercial and Industrial 6,372 2.6 30.6 9.3 6,892 3.0 32.1 8.5 Total Commercial 13,573 0.9 65.3 53.5 14,307 1.0 66.7 54.1 Consumer: Cash, Securities and Other 1,047 0.6 5.0 6.1 1,150 0.7 5.4 6.2 Consumer and Other 152 0.8 0.7 0.7 138 0.7 0.6 0.7 1-4 Family Residential 6,029 0.6 29.0 39.7 5,846 0.6 27.3 39.0 Total Consumer 7,228 0.6 34.7 46.5 7,134 0.6 33.3 45.9 Total allowance for credit losses $ 20,801 0.8 % 100.0 % 100.0 % $ 21,441 0.8 % 100.0 % 100.0 % (1) Represents the percentage of loans to total loans in the respective category.
FAQ
How did First Western Financial (MYFW) perform in Q1 2026?
First Western reported net income available to common shareholders of $6.2 million, or $0.63 diluted EPS, for Q1 2026. This compares with $3.3 million, or $0.34 per share, in Q4 2025 and $4.2 million, or $0.43, in Q1 2025, showing strong improvement.
What happened to First Western Financial’s net interest margin in Q1 2026?
Net interest margin increased to 2.81% in Q1 2026 from 2.71% in Q4 2025 and 2.61% in Q1 2025. The improvement was mainly driven by a 13 basis point decline in cost of funds, partially offset by a slight decrease in the yield on interest-earning assets.
How did First Western Financial’s loans and deposits change in Q1 2026?
Total loans held for investment reached $2.69 billion at March 31, 2026, up 1.5% from December 31, 2025. Total deposits increased to $2.84 billion, a 3.5% sequential rise, led by higher noninterest-bearing, money market, and time deposit balances across the franchise.
What is the credit quality picture for First Western Financial as of Q1 2026?
Non-performing assets were $16.3 million, or 0.50% of total assets, at March 31, 2026, down from $19.6 million, or 0.62%, at year-end 2025. Other real estate owned fell to zero, non-accrual loans edged lower, and the allowance for credit losses stood at 0.77% of total loans.
How strong are First Western Financial’s capital ratios after Q1 2026?
At March 31, 2026, consolidated Tier 1 and CET1 ratios were both 9.90%, total capital to risk-weighted assets was 12.52%, and Tier 1 leverage was 7.88%. The bank subsidiary remained classified as “well capitalized,” with higher capital ratios than the consolidated entity.
What were First Western Financial’s key revenue drivers in Q1 2026?
Total income before non-interest expense was $28.3 million in Q1 2026, up 10.1% from Q4 2025. Net interest income grew to $20.9 million, while non-interest income reached $6.7 million, helped by higher net gains on mortgage loans and increased risk management and insurance fees.