EX-99.1 2 myfw-20250331xexx991.htm EX-99.1 Document

Exhibit 99.1
myfw-20221020xex99d1001.jpg
First Western Reports First Quarter 2025 Financial Results
First Quarter 2025 Summary
•Net income available to common shareholders of $4.2 million in Q1 2025, compared to $2.7 million in Q4 2024
•Diluted earnings per share of $0.43 in Q1 2025, compared to $0.28 in Q4 2024
•Net interest income of $17.5 million in Q1 2025, compared to $16.9 million in Q4 2024
•Net interest margin increased 16 basis points from 2.45% in Q4 2024 to 2.61% in Q1 2025
•Other real estate owned ("OREO") decreased $31.5 million from $35.9 million in Q4 2024 to $4.4 million in Q1 2025 due to the sale of two properties for a net gain of $0.5 million
•Noninterest-bearing deposits increased 9.1% from $375.6 million as of Q4 2024 to $409.7 million as of Q1 2025

Denver, Colo., April 24, 2025 – First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the first quarter ended March 31, 2025.
Net income available to common shareholders was $4.2 million, or $0.43 per diluted share, for the first quarter of 2025. This compares to net income of $2.7 million, or $0.28 per diluted share, for the fourth quarter of 2024, and net income of $2.5 million, or $0.26 per diluted share, for the first quarter of 2024.
Scott C. Wylie, CEO of First Western, commented, “As expected, we generated a significant improvement in our level of profitability in the first quarter. We saw positive trends in many areas including an expansion in our net interest margin, a higher level of non-interest income, an increase in noninterest-bearing deposits, solid loan production, and well managed expenses. We also saw general stability in asset quality while having a substantial reduction in our nonperforming assets following the successful resolution of our two largest OREO properties, which were sold for a net gain.
“We expect to see a continuation of the positive trends we are seeing, while we also redeploy the cash from the sale of our two largest OREO properties into interest-earning assets. We believe this will continue to result in solid financial performance for our shareholders as we move through the year,” said Mr. Wylie.


For the Three Months Ended
March 31,December 31,March 31,
(Dollars in thousands, except per share data)202520242024
Earnings Summary  
Net interest income$17,453 $16,908 $16,070 
Less: Provision (release) for credit losses80 (974)72 
Total non-interest income7,345 6,459 7,277 
Total non-interest expense19,361 20,427 19,696 
Income before income taxes5,357 3,914 3,579 
Income tax expense1,172 1,166 1,064 
Net income available to common shareholders4,185 2,748 2,515 
Basic earnings per common share0.43 0.28 0.26 
Diluted earnings per common share0.43 0.28 0.26 
Return on average assets (annualized)0.59 %0.38 %0.35 %
Return on average shareholders' equity (annualized)6.63 4.39 4.10 
Return on tangible common equity (annualized)(1)
7.44 4.98 4.71 
Net interest margin2.61 2.45 2.34 
Efficiency ratio(1)
79.16 80.74 83.68 
____________________
(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 2025
Revenue
Total income before non-interest expense was $24.7 million for the first quarter of 2025, compared to $24.3 million for the fourth quarter of 2024. Gross revenue(1) was $24.6 million for the first quarter of 2025, compared to $23.8 million for the fourth quarter of 2024. Relative to the fourth quarter of 2024, the increase in total income before non-interest expense was primarily driven by increases in Net interest income, Net gain on mortgage loans, Net gain on other real estate owned, and Net gain on loans held for sale, partially offset by an increase in provision for credit losses and a decrease in Risk management and insurance fees. Relative to the first quarter of 2024, total income before non-interest expense increased 6.0% from $23.3 million and Gross revenue increased 4.7% from $23.5 million. Relative to the first quarter of 2024, the increase in total income before non-interest expense was primarily driven by increases in Net interest income and Net gain on other real estate owned, partially offset by decreases in Bank fees and Trust and investment management fees.
(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 Income
Net interest income for the first quarter of 2025 was $17.5 million, an increase of 3.6% from $16.9 million in the fourth quarter of 2024. The increase quarter over quarter was primarily driven by a 16 basis point increase in net interest margin, offset partially by a decline in average interest-earning assets. Relative to the first quarter of 2024, net interest income increased 8.7% from $16.1 million. The increase compared to the first quarter of 2024 was primarily driven by an 27 basis point increase in net interest margin, offset partially by a decline in average interest-earning assets.
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Net Interest Margin
Net interest margin for the first quarter of 2025 increased 16 basis points to 2.61% from 2.45% reported in the fourth quarter of 2024, primarily due to a decrease in cost of deposits and increase in interest-earning assets yield.
The yield on interest-earning assets increased 4 basis points to 5.57% from 5.53% reported in the fourth quarter of 2024 and the cost of interest-bearing deposits decreased 19 basis points to 3.59% from 3.78% reported in the fourth quarter of 2024.
Relative to the first quarter of 2024, net interest margin increased 27 basis points from 2.34%, primarily due to a 32 basis point decrease in total cost of funds.
Non-interest Income
Non-interest income for the first quarter of 2025 was $7.3 million, an increase of 12.3% from $6.5 million in the fourth quarter of 2024. The increase was driven primarily by increases in Net gain on other real estate owned, Net gain on mortgage loans, and Net gain on loans held for sale, partially offset by a decrease in Risk management and insurance fees. The increase in Net gain on other real estate was due to the sale of our two largest OREO properties for a net gain of $0.5 million. The increase in Net gain on loans held for sale was due to the reversal of the previous quarter's write-down on a non-performing loan. This loan was previously classified as held for sale; however, during the quarter it was transferred to held for investment and charged off through the Allowance for credit losses.
Relative to the first quarter of 2024, non-interest income increased slightly, driven primarily by increases in Net gain on other real estate owned and Net gain on loans accounted for under the fair value option, offset partially by decreases in Trust and investment management fees and Bank fees.
Non-interest Expense
Non-interest expense for the first quarter of 2025 was $19.4 million, a decrease of 4.9% from $20.4 million in the fourth quarter of 2024. The decrease was primarily driven by the one-time $1.1 million Other real estate owned ("OREO") write-down recognized in the fourth quarter of 2024, offset partially by an increase in Salaries and employee benefits.
Relative to the first quarter of 2024, non-interest expense decreased 1.5% from $19.7 million, driven primarily by a decrease in Professional services due to decreases in legal expenses, audit fees, and FDIC insurance fees, partially offset by increases in Occupancy and equipment expenses and Salaries and employee benefits.
The Company’s efficiency ratio(1) was 79.2% in the first quarter of 2025, compared with 80.7% in the fourth quarter of 2024 and 83.7% in the first quarter of 2024.
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Income Taxes
The Company recorded Income tax expense of $1.2 million for the first quarter of 2025, compared to Income tax expense of $1.2 million for the fourth quarter of 2024 and Income tax expense of $1.1 million for the first quarter of 2024.
Loans
Total loans held for investment of $2.43 billion as of March 31, 2025 was flat compared to December 31, 2024. Changes in the quarter included net growth in the commercial real estate and 1 - 4 family residential portfolios, offset by net decreases in the cash, securities, and other and construction and development portfolios. Total average loans were $2.41 billion for the first quarter of 2025, an increase of $21.4 million from $2.39 billion for
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the fourth quarter of 2024. Relative to the first quarter of 2024, total loans held for investment decreased from $2.48 billion as of March 31, 2024, primarily driven by net decreases in the commercial and industrial, construction and development, and cash, securities, and other portfolios, partially offset by net growth in the 1 - 4 family residential and non-owner occupied commercial real estate portfolios.
Deposits
Total deposits were $2.52 billion as of March 31, 2025, an increase of 0.4% from $2.51 billion as of December 31, 2024. Relative to the first quarter of 2024, total deposits decreased from $2.53 billion as of March 31, 2024, driven primarily by a decrease in Noninterest-bearing deposits.
Borrowings
Federal Home Loan Bank (“FHLB”) and Federal Reserve borrowings were a combined $51.6 million as of March 31, 2025, a decrease of $5.4 million from $57.0 million as of December 31, 2024. The change when compared to December 31, 2024 was primarily driven by net pay downs on the Company's FHLB line of credit. Relative to the first quarter of 2024, borrowings decreased $17.9 million from $69.5 million as of March 31, 2024. The decrease in borrowings from March 31, 2024 was primarily driven by BTFP payoffs and net pay downs on the Company's FHLB line of credit.
Subordinated notes were $44.6 million as of March 31, 2025, compared to $52.6 million as of December 31, 2024. Subordinated notes decreased $7.8 million from $52.4 million as of March 31, 2024. Relative to the fourth quarter of 2024 and first quarter of 2024, the decrease was due to the call of $8.0 million of subordinated notes that became eligible to call in the first quarter of 2025.
Assets Under Management
Assets Under Management (“AUM”) decreased to $7.18 billion as of March 31, 2025, compared to $7.32 billion as of December 31, 2024. The decrease in AUM during the quarter was primarily attributable to net withdrawals throughout the first quarter of 2025. Compared to March 31, 2024, total AUM increased slightly from $7.14 billion.
Credit Quality
Non-performing assets totaled $17.1 million, or 0.59% of total assets, as of March 31, 2025, compared to $49.0 million, or 1.68% of total assets, as of December 31, 2024. The decrease in non-performing assets during the quarter was primarily due to the sale of two OREO properties for a net gain of $0.5 million. As of March 31, 2024, non-performing assets totaled $46.0 million, or 1.57% of total assets. Relative to the first quarter of 2024, the decrease in non-performing assets was primarily driven by the sale of two OREO properties, partially offset by additions to non-performing loans. OREO totaled $4.4 million as of March 31, 2025 a decrease of $31.5 million from $35.9 million as of December 31, 2024. As of March 31, 2024, the Company held no OREO.
Non-performing loans totaled $12.8 million as of March 31, 2025, a decrease of $0.3 million from $13.1 million as of December 31, 2024. The decrease was primarily due to the charge-off of a non-performing loan that had previously been held for sale. As of March 31, 2024, non-performing loans totaled $46.0 million. The decrease when compared to March 31, 2024 was driven by the migration of one loan relationship out of non-performing loans and into OREO, partially offset by additions to non-performing loans.
During the first quarter of 2025, the Company recorded provision expense of $0.1 million, compared to a provision release of $1.0 million in the fourth quarter of 2024 and provision expense of $0.1 million in the first quarter of 2024.
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Capital
As of March 31, 2025, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of March 31, 2025, the Bank was classified as “well capitalized,” as summarized in the following table:
March 31,
2025
Consolidated Capital
Tier 1 capital to risk-weighted assets10.35 %
Common Equity Tier 1 ("CET1") to risk-weighted assets10.35 
Total capital to risk-weighted assets13.15 
Tier 1 capital to average assets8.12 
Bank Capital
Tier 1 capital to risk-weighted assets11.76 %
CET1 to risk-weighted assets11.76 
Total capital to risk-weighted assets12.52 
Tier 1 capital to average assets9.24 
Book value per common share increased 1.3% from $26.10 as of December 31, 2024 to $26.44 as of March 31, 2025. Book value per common share increase 3.6% from $25.52 as of March 31, 2024.
Tangible book value per common share(1) increased 1.6% from $22.83 as of December 31, 2024, to $23.18 as of March 31, 2025. Tangible book value per common share increased 4.4% from $22.21 as of March 31, 2024.
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Conference Call, Webcast and Slide Presentation
The Company will host a conference call and webcast at 10:00 a.m. MT/ 12:00 p.m. ET on Friday, April 25, 2025. Telephone access: https://register-conf.media-server.com/register/BI019349e043a94dc394d0159a3c41719d.
A slide presentation relating to the first quarter 2025 results will be accessible prior to the scheduled conference call. The slide presentation and webcast of the conference call can be accessed on the Events and Presentations page of the Company’s investor relations website at https://myfw.gcs-web.com.
About First Western
First Western is a financial services holding company headquartered in Denver, Colorado, with operations in Colorado, Arizona, Wyoming, California, and Montana. First Western and its subsidiaries provide a fully integrated suite of wealth management services on a private trust bank platform, which includes a comprehensive selection of deposit, loan, trust, wealth planning and investment management products and services. First Western’s common stock is traded on the Nasdaq Global Select Market under the symbol “MYFW.” For more information, please visit www.myfw.com.
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Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include “Tangible Common Equity,” “Tangible Common Book Value per Share,” “Return on Tangible Common Equity,” “Efficiency Ratio,” “Gross Revenue,” and “Allowance for Credit Losses to Adjusted Loans". The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies. Reconciliation of non-GAAP financial measures to GAAP financial measures are provided at the end of this press release.
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Forward-Looking Statements
Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “position,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “opportunity,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Those risks and uncertainties include, without limitation, the lack of soundness of other financial institutions or financial market utilities may adversely affect the Company; the Company’s ability to engage in routine funding and other transactions could be adversely affected by the actions and commercial soundness of other financial institutions; financial institutions are interrelated because of trading, clearing, counterparty or other relationships; defaults by, or even rumors or questions about, one or more financial institutions or financial market utilities, or the financial services industry generally, may lead to market-wide liquidity problems and losses of client, creditor and counterparty confidence and could lead to losses or defaults by other financial institutions, or the Company; integration risks and projected cost savings in connection with acquisitions; 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 competition for investment managers and professionals; the risk of fluctuation in the value of our debt securities; the risk of changes in interest rates; the risk of the adequacy of our allowance for credit losses; the risk in our ability to maintain a strong core deposit base or other low-cost funding sources; the risk of weak economic conditions and global trade, including the imposition of tariffs; the risk that legislative or regulatory actions may have a significant adverse effect on our operations. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 7, 2025 (“Form 10-K”), and other documents we file with the SEC from time to time. We urge readers of this news release to review the “Risk Factors” section our Form 10-K and any updates to those risk factors set forth in our subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and our other filings with the SEC. Also, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today’s date, or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Contacts:
Financial Profiles, Inc.
Tony Rossi
310-622-8221
MYFW@finprofiles.com
IR@myfw.com
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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)202520242024
Interest and dividend income:
Loans, including fees$34,068 $34,287 $35,139 
Loans accounted for under the fair value option111 118 209 
Investment securities
681 696 603 
Interest-bearing deposits in other financial institutions2,221 2,879 2,352 
Dividends, restricted stock128 129 95 
Total interest and dividend income37,209 38,109 38,398 
Interest expense:
Deposits18,516 19,921 20,622 
Other borrowed funds1,240 1,280 1,706 
Total interest expense19,756 21,201 22,328 
Net interest income17,453 16,908 16,070 
Less: Provision (release) for credit losses80 (974)72 
Net interest income, after provision (release) for credit losses17,373 17,882 15,998 
Non-interest income:
Trust and investment management fees4,677 4,660 4,930 
Net gain on mortgage loans1,067 377 1,264 
Net gain (loss) on loans held for sale222 (222)117 
Bank fees422 426 891 
Risk management and insurance fees259 1,139 49 
Income on company-owned life insurance110 112 105 
Net gain (loss) on loans accounted for under the fair value option6 (149)(302)
Net gain on other real estate owned459 — — 
Unrealized gain (loss) recognized on equity securities11 (49)(6)
Other112 165 229 
Total non-interest income7,345 6,459 7,277 
Total income before non-interest expense24,718 24,341 23,275 
Non-interest expense:
Salaries and employee benefits11,480 11,237 11,267 
Occupancy and equipment2,210 2,100 1,976 
Professional services1,704 1,821 2,411 
Technology and information systems1,078 1,073 1,010 
Data processing1,122 1,029 948 
Marketing216 397 194 
Amortization of other intangible assets51 56 57 
Other1,500 2,714 1,833 
Total non-interest expense19,361 20,427 19,696 
Income before income taxes5,357 3,914 3,579 
Income tax expense1,172 1,166 1,064 
Net income available to common shareholders$4,185 $2,748 $2,515 
Earnings per common share:
Basic$0.43 $0.28 $0.26 
Diluted0.43 0.28 0.26 
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First Western Financial, Inc.
Condensed Consolidated Balance Sheets (unaudited)
March 31,December 31,March 31,
(dollars in thousands)202520242024
Assets
Cash and cash equivalents:
Cash and due from banks$15,924 $9,770 $8,136 
Interest-bearing deposits in other financial institutions255,658 226,271 249,753 
Total cash and cash equivalents271,582 236,041 257,889 
Held-to-maturity debt securities (fair value of $67,479, $68,161 and $64,908, respectively), net of allowance for credit losses of $71
73,775 75,724 72,303 
Correspondent bank stock, at cost5,968 5,864 4,461 
Mortgage loans held for sale, at fair value10,557 25,455 10,470 
Loans held for sale, at fair value— 251 — 
Loans (includes $6,112, $7,283, and $11,922 measured at fair value, respectively)
2,425,367 2,425,565 2,475,524 
Allowance for credit losses(17,956)(18,330)(24,630)
Loans, net2,407,411 2,407,235 2,450,894 
Premises and equipment, net24,554 24,129 24,869 
Accrued interest receivable10,623 10,364 11,919 
Accounts receivable4,505 4,763 4,980 
Other receivables4,608 5,710 5,254 
Other real estate owned, net4,385 35,929 — 
Goodwill and other intangible assets, net31,576 31,627 31,797 
Deferred tax assets, net2,856 3,079 5,695 
Company-owned life insurance17,071 16,961 16,635 
Other assets36,829 35,905 35,051 
Total assets$2,906,300 $2,919,037 $2,932,217 
Liabilities  
Deposits:   
Noninterest-bearing$409,696 $375,603 $434,236 
Interest-bearing2,105,701 2,138,606 2,097,734 
Total deposits2,515,397 2,514,209 2,531,970 
Borrowings:   
Federal Home Loan Bank and Federal Reserve borrowings51,612 57,038 69,484 
Subordinated notes44,621 52,565 52,397 
Accrued interest payable2,371 1,995 2,415 
Other liabilities35,744 40,908 30,423 
Total liabilities2,649,745 2,666,715 2,686,689 
Shareholders’ Equity   
Total shareholders’ equity256,555 252,322 245,528 
Total liabilities and shareholders’ equity$2,906,300 $2,919,037 $2,932,217 
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First Western Financial, Inc.
Consolidated Financial Summary (unaudited)
March 31,December 31,March 31,
(dollars in thousands)202520242024
Loan Portfolio
Cash, Securities, and Other(1)
$101,078 $120,005 $151,178 
Consumer and Other16,688 17,333 18,556 
Construction and Development291,133 315,686 333,284 
1-4 Family Residential971,179 960,354 910,129 
Non-Owner Occupied CRE636,820 614,384 562,862 
Owner Occupied CRE182,417 173,223 194,338 
Commercial and Industrial223,197 220,501 297,573 
Total 2,422,512 2,421,486 2,467,920 
Loans accounted for under the fair value option6,280 7,508 12,276 
Total loans held for investment2,428,792 2,428,994 2,480,196 
Deferred (fees) costs and unamortized premiums/(unaccreted discounts), net(2)
(3,425)(3,429)(4,672)
Loans (includes $6,112, $7,283, and $11,922 measured at fair value, respectively)
$2,425,367 $2,425,565 $2,475,524 
Mortgage loans held for sale10,557 25,455 10,470 
Loans held for sale— 251 — 
Deposit Portfolio
Money market deposit accounts$1,566,737 $1,513,605 $1,503,598 
Time deposits379,533 471,415 442,834 
Interest checking accounts144,980 139,374 132,415 
Savings accounts14,451 14,212 18,887 
Total interest-bearing deposits2,105,701 2,138,606 2,097,734 
Noninterest-bearing accounts409,696 375,603 434,236 
Total deposits$2,515,397 $2,514,209 $2,531,970 
____________________
(1) Includes PPP loans of $1.6 million as of March 31, 2025, $2.1 million as of December 31, 2024, and $3.8 million as of March 31, 2024.
(2) Includes fair value adjustments on loans held for investment accounted for under the fair value option.

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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)202520242024
Average Balance Sheets
Assets
Interest-earning assets:
Interest-bearing deposits in other financial institutions$198,294 $236,152 $177,523 
Debt securities75,592 77,464 74,666 
Correspondent bank stock5,806 5,738 4,451 
Gross loans
2,407,482 2,386,070 2,490,300 
Mortgage loans held for sale13,593 26,623 6,752 
Loans held at fair value6,846 8,136 13,134 
Total interest-earning assets2,707,613 2,740,183 2,766,826 
Noninterest-earning assets145,479 161,783 100,170 
Total assets$2,853,092 $2,901,966 $2,866,996 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing deposits$2,090,505 $2,095,204 $2,008,246 
FHLB and Federal Reserve borrowings51,885 54,428 92,195 
Subordinated notes52,495 52,528 52,360 
Total interest-bearing liabilities2,194,885 2,202,160 2,152,801 
Noninterest-bearing liabilities:  
Noninterest-bearing deposits363,922 403,433 446,457 
Other liabilities41,656 45,889 22,250 
Total noninterest-bearing liabilities405,578 449,322 468,707 
Total shareholders’ equity252,629 250,484 245,488 
Total liabilities and shareholders’ equity$2,853,092 $2,901,966 $2,866,996 
Yields/Cost of funds (annualized)
Interest-bearing deposits in other financial institutions4.54 %4.85 %5.33 %
Debt securities3.65 3.57 3.25 
Correspondent bank stock8.94 8.94 8.58 
Loans5.71 5.65 5.66 
Loan held at fair value6.58 5.77 6.40 
Mortgage loans held for sale5.46 6.02 6.79 
Total interest-earning assets5.57 5.53 5.58 
Interest-bearing deposits3.59 3.78 4.13 
Total deposits3.06 3.17 3.38 
FHLB and Federal Reserve borrowings3.92 3.96 4.23 
Subordinated notes5.70 5.59 5.66 
Total interest-bearing liabilities3.65 3.83 4.17 
Net interest margin2.61 2.45 2.34 
Net interest rate spread1.92 1.70 1.41 
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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)202520242024
Asset Quality
Non-performing loans$12,758 $13,052 $46,044 
Non-performing assets17,143 48,981 46,044 
Net charge-offs (recoveries)566 (270)— 
Non-performing loans to total loans0.53 %0.54 %1.86 %
Non-performing assets to total assets0.59 1.68 1.57 
Allowance for credit losses to non-performing loans140.74 140.44 53.49 
Allowance for credit losses to total loans0.74 0.76 1.00 
Allowance for credit losses to adjusted loans(1)
0.74 0.76 1.00 
Net charge-offs (recoveries) to average loans0.02 (0.01)—
Assets Under Management$7,176,624 $7,321,147 $7,141,453 
Market Data
Book value per share at period end$26.44 $26.10 $25.52 
Tangible book value per common share(1)
23.18 22.83 22.21 
Weighted average outstanding shares, basic9,704,419 9,665,621 9,621,309 
Weighted average outstanding shares, diluted9,798,591 9,794,797 9,710,764 
Shares outstanding at period end9,704,320 9,667,142 9,621,309 
Consolidated Capital
Tier 1 capital to risk-weighted assets10.35 %10.07 %9.77 %
CET1 to risk-weighted assets10.35 10.07 9.77 
Total capital to risk-weighted assets13.15 13.12 13.15 
Tier 1 capital to average assets8.12 7.88 7.73 
Bank Capital
Tier 1 capital to risk-weighted assets11.76 %11.41 %11.00 %
CET1 to risk-weighted assets11.76 11.41 11.00 
Total capital to risk-weighted assets12.52 12.10 12.02 
Tier 1 capital to average assets9.24 8.94 8.70 
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(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.
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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)202520242024
Tangible Common
Total shareholders' equity$256,555 $252,322 $245,528 
Less: goodwill and other intangibles, net31,576 31,627 31,797 
Tangible common equity$224,979 $220,695 $213,731 
Common shares outstanding, end of period9,704,320 9,667,142 9,621,309 
Tangible common book value per share$23.18 $22.83 $22.21 
Net income available to common shareholders4,185 2,748 2,515 
Return on tangible common equity (annualized)7.44 %4.98 %4.71 %
Efficiency
Non-interest expense$19,361 $20,427 $19,696 
Less: OREO expenses and write-downs(80)1,222 — 
Adjusted non-interest expense$19,441 $19,205 $19,696 
Total income before non-interest expense$24,718 $24,341 $23,275 
Less: unrealized gain (loss) recognized on equity securities11 (49)(6)
Less: net gain (loss) on loans accounted for under the fair value option6 (149)(302)
Less: net gain (loss) on loans held for sale222 (222)117 
Plus: provision (release) for credit losses80 (974)72 
Gross revenue$24,559 $23,787 $23,538 
Efficiency ratio79.16 %80.74 %83.68 %
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