0001327607FALSE00013276072024-07-232024-07-23

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): July 23, 2024
FIRST WESTERN FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
Colorado001-3859537-1442266
(State or other jurisdiction of
incorporation or organization)		(Commission
File Number)		(I.R.S. Employer
Identification No.)
1900 16th Street, Suite 1200
Denver, Colorado
80202
(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:
oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
oPre-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).
oEmerging growth company
oIf 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 classTrading SymbolName of each exchange on which registered
Common Stock, no par valueMYFWNASDAQ Stock Market LLC


Item 2.02    Results of Operations and Financial Condition.
On July 23, 2024, First Western Financial, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter ended June 30, 2024. 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 second quarter ended June 30, 2024 on Wednesday, July 24, 2024, 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 second quarter ended June 30, 2024 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
99.2
104Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document)
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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: July 23, 2024By: /s/ Scott C. Wylie
Scott C. Wylie
Chairman, Chief Executive Officer and President
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Exhibit 99.1
myfw-20221020xex99d1001a.jpgmyfw-20221020xex99d1001a.jpg
First Western Reports Second Quarter 2024 Financial Results
Second Quarter 2024 Summary
•Book value per common share increased 0.1% from $25.52 in Q1 2024 to $25.55 in Q2 2024. Tangible book value per common share(1) increased 0.2% from $22.21 in Q1 2024 to $22.27 in Q2 2024
•Net interest margin stabilized during the quarter, with a slight increase of 1 basis point from 2.34% in Q1 2024 to 2.35% in Q2 2024
•Net income available to common shareholders of $1.1 million in Q2 2024, compared to $2.5 million in Q1 2024
•Diluted earnings per share of $0.11 in Q2 2024, compared to $0.26 in Q1 2024
•Total capital to risk-weighted assets ratio of 13.44% in Q2 2024, compared to 13.15% in Q1 2024
Denver, Colo., July 23, 2024 – First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the second quarter ended June 30, 2024.
Net income available to common shareholders was $1.1 million, or $0.11 per diluted share, for the second quarter of 2024. This compares to net income of $2.5 million, or $0.26 per diluted share, for the first quarter of 2024, and net income of $1.5 million, or $0.16 per diluted share, for the second quarter of 2023.

Scott C. Wylie, CEO of First Western, commented, "During the second quarter, we continued to prioritize prudent risk management and a conservative approach to new loan production, which resulted in our balance sheet remaining relatively flat in the quarter. We also continued to execute well on our strategic priorities including maintaining disciplined expense control, adding new deposit relationships, and generating strong contributions of non-interest income from our wealth management and mortgage banking businesses, which combined with our prudent balance sheet management resulted in a further increase in our tangible book value per share. Our performance grew stronger as we moved through the quarter with increases in both loans and deposits in June and an increase in our net interest margin.

“We are benefiting from the strength of the franchise we have built to upgrade our banking talent throughout our markets as we fill open positions. These new additions, along with strong execution across our entire organization on our business development initiatives, are positively impacting our pipelines in all areas of our business including loans, deposits, mortgage banking, and investment management. Based on the positive trends we are currently seeing, we expect to generate a higher level of profitability in the second half of the year, while also continuing to make investments in talent and technology that will further enhance our ability to generate profitable growth in the future,” said Mr. Wylie.




For the Three Months Ended
June 30,March 31,June 30,
(Dollars in thousands, except per share data)202420242023
Earnings Summary  
Net interest income$15,778 $16,070 $18,435 
Provision for credit losses2,334 72 1,843 
Total non-interest income6,972 7,277 3,962 
Total non-interest expense19,001 19,696 18,519 
Income before income taxes1,415 3,579 2,035 
Income tax expense339 1,064 529 
Net income available to common shareholders1,076 2,515 1,506 
Basic earnings per common share0.11 0.26 0.16 
Diluted earnings per common share0.11 0.26 0.16 
Return on average assets (annualized)0.15 %0.35 %0.21 %
Return on average shareholders' equity (annualized)1.73 4.10 2.49 
Return on tangible common equity (annualized)(1)
2.00 4.71 2.86 
Net interest margin2.35 2.34 2.73 
Efficiency ratio(1)
82.13 83.44 74.48 
____________________
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Operating Results for the Second Quarter 2024
Revenue
Total income before non-interest expense was $20.4 million for the second quarter of 2024, compared to $23.3 million for the first quarter of 2024. Gross revenue(1) was $23.1 million for the second quarter of 2024, compared to $23.5 million for the first quarter of 2024. The decrease in total income before non-interest expense was primarily driven by an increase in Provision for credit losses. Relative to the second quarter of 2023, total income before non-interest expense decreased 0.7% from $20.6 million. Gross revenue decreased 6.9% from $24.8 million for the second quarter of 2023. The decrease was driven by a decrease in Net interest income as a result of higher Interest expense due to higher deposit costs, offset partially by higher Interest income and Net mortgage gains.
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP 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 second quarter of 2024 was $15.8 million, a decrease of 1.9% from $16.1 million in the first quarter of 2024. The decrease quarter over quarter was primarily driven by a decline in interest-bearing deposits in other financial institutions. Relative to the second quarter of 2023, net interest income decreased 14.1% from $18.4 million. The decrease compared to the prior year was due to higher Interest expense driven primarily by higher deposit costs, offset partially by higher Interest income.
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Net Interest Margin
Net interest margin for the second quarter of 2024 increased 1 basis point to 2.35% from 2.34% reported in the first quarter of 2024, primarily due to higher loan yields offset partially by continued pricing pressure on interest-bearing deposits and an unfavorable mix shift in the deposit portfolio.
The yield on interest-earning assets increased 9 basis points to 5.67% in the second quarter of 2024 from 5.58% in the first quarter of 2024 and the cost of interest-bearing deposits increased 6 basis points to 4.19% in the second quarter of 2024 from 4.13% in the first quarter of 2024.
Relative to the second quarter of 2023, net interest margin decreased from 2.73%, primarily due to pricing pressure on interest-bearing deposits and an unfavorable mix shift in the deposit portfolio, offset partially by higher loan yields.
Non-interest Income
Non-interest income for the second quarter of 2024 was $7.0 million compared to $7.3 million in the first quarter of 2024. The decrease was primarily driven by higher loan prepayment penalties impacting Bank fees during the first quarter of 2024, partially offset by higher Net gain on mortgage loans due to higher origination volume.
Relative to the second quarter of 2023, non-interest income increased 76.0% from $4.0 million. Increases were driven primarily by an increase in net gain on mortgage loans, a decrease in net loss on loans accounted for under the fair value option and a decrease in other non-interest loss which included an asset impairment write down in second quarter of 2023.
Non-interest Expense
Non-interest expense for the second quarter of 2024 was $19.0 million compared to $19.7 million for the first quarter of 2024. The decrease was driven by a decrease in legal fees and fraud losses.
Relative to the second quarter of 2023, non-interest expense increased 2.6% from $18.5 million, driven primarily by technology enhancements and an increase in occupancy costs.
The Company’s efficiency ratio(1) was 82.1% in the second quarter of 2024, compared with 83.4% in the first quarter of 2024 and 74.5% in the second quarter of 2023.
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP 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 $0.3 million for the second quarter of 2024, compared to Income tax expense of $1.1 million for the first quarter of 2024 and $0.5 million for the second quarter of 2023. The decrease was attributable to the decrease in Income before income taxes.
Loans
Total loans held for investment were $2.46 billion as of June 30, 2024, a decrease of 0.8% from $2.48 billion as of March 31, 2024. The decline was due to a net decrease in the construction, cash, securities and other, and commercial and industrial portfolios offset partially by net growth in the commercial real estate portfolio. Relative to the second quarter of 2023, total loans held for investment decreased 1.6% year over year compared to $2.50 billion as of June 30, 2023.
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Deposits
Total deposits were $2.41 billion as of June 30, 2024, compared to $2.53 billion as of March 31, 2024. The decrease was driven primarily by seasonal tax payments, operating account fluctuations and clients using liquidity for strategic investments. Relative to the second quarter of 2023, total deposits increased from $2.38 billion as of June 30, 2023, driven primarily by interest-bearing deposits due to new and expanded deposit relationships.
Borrowings
Federal Home Loan Bank (“FHLB”) and Federal Reserve borrowings were a combined $191.5 million as of June 30, 2024, an increase of $122.0 million from $69.5 million as of March 31, 2024. The change when compared to March 31, 2024 was driven by an increase in FHLB borrowing due to the deposit runoff that occurred in the quarter. Relative to the second quarter of 2023, borrowings decreased $121.1 million from $312.6 million as of June 30, 2023. The change in FHLB borrowings from June 30, 2023 is driven by an increase in deposits, decrease in loans, and a decrease in excess liquidity that had been carried on the balance sheet as a result of the banking crisis in early 2023.
Subordinated notes were $52.5 million as of June 30, 2024, compared to $52.4 million as of March 31, 2024. Subordinated notes increased $0.3 million from $52.2 million as of June 30, 2023.
Assets Under Management

Assets Under Management (“AUM”) decreased during the second quarter to $7.01 billion as of June 30, 2024, compared to $7.14 billion as of March 31, 2024. The decrease in AUM during the quarter was driven by asset withdrawals in custody accounts that have minimal impact on Trust and Investment Management fees. Total AUM increased by $0.51 million compared to June 30, 2023 from $6.50 billion, which was primarily attributable to improving market conditions year-over-year resulting in an increase in the value of AUM.
Credit Quality
Non-performing assets totaled $49.3 million, or 1.68% of total assets, as of June 30, 2024, compared to $46.0 million, or 1.57% of total assets, as of March 31, 2024. The increase was primarily due to the foreclosure on two properties used as collateral for one participated loan balance, which increased OREO by a greater amount than the resulting decrease in non-performing loans. As of June 30, 2023, non-performing assets totaled $10.3 million, or 0.34% of total assets. Relative to the second quarter of 2023, the increase in non-performing assets was due to the net addition of $36.9 million in loans added throughout 2023, due primarily to the addition of one large loan relationship.
During the second quarter of 2024 the Company recorded a provision expense of $2.3 million, compared to a provision expense of $0.1 million in the first quarter of 2024 and $1.8 million in the second quarter of 2023. The increase in provision expense recorded in the second quarter of 2024 compared to first quarter of 2024 was primarily driven by increased provision on individually analyzed loans.
4

Capital
As of June 30, 2024, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of June 30, 2024, the Bank was classified as “well capitalized,” as summarized in the following table:
June 30,
2024
Consolidated Capital
Tier 1 capital to risk-weighted assets9.92 %
Common Equity Tier 1 ("CET1") to risk-weighted assets9.92 
Total capital to risk-weighted assets13.44 
Tier 1 capital to average assets7.91 
Bank Capital
Tier 1 capital to risk-weighted assets11.22 %
CET1 to risk-weighted assets11.22 
Total capital to risk-weighted assets12.35 
Tier 1 capital to average assets8.95 
Book value per common share increased 0.1% from $25.52 as of March 31, 2024 to $25.55 as of June 30, 2024. Book value per common share increased 0.7% from $25.38 as of June 30, 2023.
Tangible book value per common share(1) increased 0.2% from $22.21 as of March 31, 2024, to $22.27 as of June 30, 2024. Tangible book value per common share increased 1.1% from $22.03 as of June 30, 2023.
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP 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 Wednesday, July 24, 2024. Telephone access: https://register.vevent.com/register/BI9009534197b84a16957a4d26aa92a1fe.
A slide presentation relating to the second quarter 2024 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 investment securities; the risk of changes in interest rates; and the risk of the adequacy of our allowance for credit losses and the risk in our ability to maintain a strong core deposit base or other low-cost funding sources. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 15, 2024 (“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
June 30,March 31,June 30,
(Dollars in thousands, except per share amounts)202420242023
Interest and dividend income:
Loans, including fees$35,275 $35,139 $33,583 
Loans accounted for under the fair value option168 209 351 
Investment securities651 603 627 
Interest-bearing deposits in other financial institutions1,855 2,352 1,666 
Dividends, restricted stock105 95 145 
Total interest and dividend income38,054 38,398 36,372 
Interest expense:
Deposits20,848 20,622 15,864 
Other borrowed funds1,428 1,706 2,073 
Total interest expense22,276 22,328 17,937 
Net interest income15,778 16,070 18,435 
Less: provision for credit losses2,334 72 1,843 
Net interest income, after provision for credit losses13,444 15,998 16,592 
Non-interest income:
Trust and investment management fees4,875 4,930 4,602 
Net gain on mortgage loans1,820 1,264 774 
Net gain on loans held for sale— 117 — 
Bank fees327 891 591 
Risk management and insurance fees109 49 103 
Income on company-owned life insurance106 105 91 
Net loss on loans accounted for under the fair value option(315)(302)(1,124)
Unrealized loss recognized on equity securities(2)(6)(11)
Other52 229 (1,064)
Total non-interest income6,972 7,277 3,962 
Total income before non-interest expense20,416 23,275 20,554 
Non-interest expense:
Salaries and employee benefits11,097 11,267 11,148 
Occupancy and equipment2,080 1,976 1,939 
Professional services1,826 2,411 1,858 
Technology and information systems1,042 1,010 831 
Data processing1,101 948 1,052 
Marketing243 194 379 
Amortization of other intangible assets56 57 62 
Other1,556 1,833 1,250 
Total non-interest expense19,001 19,696 18,519 
Income before income taxes1,415 3,579 2,035 
Income tax expense339 1,064 529 
Net income available to common shareholders$1,076 $2,515 $1,506 
Earnings per common share:
Basic$0.11 $0.26 $0.16 
Diluted0.11 0.26 0.16 
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First Western Financial, Inc.
Condensed Consolidated Balance Sheets (unaudited)
June 30,March 31,June 30,
(Dollars in thousands)202420242023
Assets
Cash and cash equivalents:
Cash and due from banks$6,374 $8,136 $6,285 
Interest-bearing deposits in other financial institutions239,425 249,753 291,283 
Total cash and cash equivalents245,799 257,889 297,568 
Held-to-maturity securities (fair value of $71,067, $64,908 and $69,551, respectively), net of allowance for credit losses of $71
78,927 72,303 77,469 
Correspondent bank stock, at cost10,804 4,461 13,518 
Mortgage loans held for sale, at fair value26,856 10,470 19,746 
Loans (includes $10,190, $11,922, and $20,807 measured at fair value, respectively)
2,456,063 2,475,524 2,495,582 
Allowance for credit losses(27,319)(24,630)(22,044)
Loans, net2,428,744 2,450,894 2,473,538 
Premises and equipment, net24,657 24,869 25,473 
Accrued interest receivable11,339 11,919 11,135 
Accounts receivable5,118 4,980 5,116 
Other receivables4,875 5,254 3,331 
Other real estate owned, net11,421 — — 
Goodwill and other intangible assets, net31,741 31,797 31,977 
Deferred tax assets, net6,123 5,695 7,202 
Company-owned life insurance16,741 16,635 16,333 
Other assets34,410 35,051 23,240 
Total assets$2,937,555 $2,932,217 $3,005,646 
Liabilities  
Deposits:   
Noninterest-bearing$396,702 $434,236 $514,241 
Interest-bearing2,014,190 2,097,734 1,861,153 
Total deposits2,410,892 2,531,970 2,375,394 
Borrowings:   
Federal Home Loan Bank and Federal Reserve borrowings191,505 69,484 312,600 
Subordinated notes52,451 52,397 52,223 
Accrued interest payable2,243 2,415 1,788 
Other liabilities33,589 30,423 21,399 
Total liabilities2,690,680 2,686,689 2,763,404 
Shareholders’ Equity   
Total shareholders’ equity246,875 245,528 242,242 
Total liabilities and shareholders’ equity$2,937,555 $2,932,217 $3,005,646 
9

First Western Financial, Inc.
Consolidated Financial Summary (unaudited)
June 30,March 31,June 30,
(Dollars in thousands)202420242023
Loan Portfolio
Cash, Securities, and Other(1)
$143,720 $151,178 $150,679 
Consumer and Other15,645 18,556 21,866 
Construction and Development309,146 333,284 313,227 
1-4 Family Residential904,569 910,129 878,670 
Non-Owner Occupied CRE609,790 562,862 561,880 
Owner Occupied CRE189,353 194,338 218,651 
Commercial and Industrial277,973 297,573 338,679 
Total 2,450,196 2,467,920 2,483,652 
Loans accounted for under the fair value option10,494 12,276 18,274 
Total loans held for investment2,460,690 2,480,196 2,501,926 
Deferred (fees) costs and unamortized premiums/(unaccreted discounts), net(2)
(4,627)(4,672)(6,344)
Loans (includes $10,190, $11,922, and $20,807 measured at fair value, respectively)
$2,456,063 $2,475,524 $2,495,582 
Mortgage loans held for sale26,856 10,470 19,746 
Deposit Portfolio
Money market deposit accounts$1,342,753 $1,503,598 $1,297,732 
Time deposits519,597 442,834 376,147 
Negotiable order of withdrawal accounts135,759 132,415 168,537 
Savings accounts16,081 18,887 18,737 
Total interest-bearing deposits2,014,190 2,097,734 1,861,153 
Noninterest-bearing accounts396,702 434,236 514,241 
Total deposits$2,410,892 $2,531,970 $2,375,394 
____________________
(1) Includes PPP loans of $3.1 million as of June 30, 2024, $3.8 million as of March 31, 2024, and $5.6 million as of June 30, 2023.
(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
June 30,March 31,June 30,
(Dollars in thousands)202420242023
Average Balance Sheets
Assets
Interest-earning assets:
Interest-bearing deposits in other financial institutions$141,600 $177,523 $135,757 
Investment securities75,461 74,666 80,106 
Correspondent bank stock4,801 4,451 8,844 
Loans2,443,937 2,490,300 2,451,762 
Mortgage loans held for sale20,254 6,752 15,841 
Loans held at fair value11,314 13,134 19,825 
Total interest-earning assets2,697,367 2,766,826 2,712,135 
Allowance for credit losses(24,267)(23,974)(20,077)
Noninterest-earning assets143,514 124,144 124,561 
Total assets$2,816,614 $2,866,996 $2,816,619 
Liabilities and Shareholders’ Equity  
Interest-bearing liabilities:  
Interest-bearing deposits$2,001,691 $2,008,246 $1,847,788 
FHLB and Federal Reserve borrowings67,196 92,195 123,578 
Subordinated notes52,414 52,360 52,186 
Total interest-bearing liabilities2,121,301 2,152,801 2,023,552 
Noninterest-bearing liabilities:  
Noninterest-bearing deposits412,741 446,457 527,562 
Other liabilities34,051 22,250 23,850 
Total noninterest-bearing liabilities446,792 468,707 551,412 
Total shareholders’ equity248,521 245,488 241,655 
Total liabilities and shareholders’ equity$2,816,614 $2,866,996 $2,816,619 
Yields/Cost of funds (annualized)
Interest-bearing deposits in other financial institutions5.27 %5.33 %4.92 %
Investment securities3.47 3.25 3.14 
Correspondent bank stock8.80 8.58 6.58 
Loans5.75 5.66 5.46 
Loan held at fair value5.97 6.40 7.10 
Mortgage loans held for sale6.83 6.79 5.82 
Total interest-earning assets5.67 5.58 5.38 
Interest-bearing deposits4.19 4.13 3.44 
Total deposits3.47 3.38 2.68 
FHLB and Federal Reserve borrowings4.14 4.23 4.42 
Subordinated notes5.66 5.66 5.47 
Total interest-bearing liabilities4.22 4.17 3.56 
Net interest margin2.35 2.34 2.73 
Net interest rate spread1.45 1.41 1.82 
11

First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
As of or for the Three Months Ended
June 30,March 31,June 30,
(Dollars in thousands, except share and per share amounts)202420242023
Asset Quality
Non-performing loans$37,909 $46,044 $10,273 
Non-performing assets49,330 46,044 10,273 
Net (recoveries) charge-offs(9)— 8 
Non-performing loans to total loans1.54 %1.86 %0.41 %
Non-performing assets to total assets1.68 1.57 0.34 
Allowance for credit losses to non-performing loans72.06 53.49 214.58 
Allowance for credit losses to total loans1.11 1.00 0.89 
Allowance for credit losses to adjusted loans(1)
1.12 1.00 0.89 
Net charge-offs to average loans*— *
Assets Under Management$7,011,796 $7,141,453 $6,503,964 
Market Data
Book value per share at period end25.55 25.52 25.38 
Tangible book value per common share(1)
22.27 22.21 22.03 
Weighted average outstanding shares, basic9,647,345 9,621,309 9,532,397 
Weighted average outstanding shares, diluted9,750,667 9,710,764 9,686,401 
Shares outstanding at period end9,660,549 9,621,309 9,545,071 
Consolidated Capital
Tier 1 capital to risk-weighted assets9.92 %9.77 %9.26 %
CET1 to risk-weighted assets9.92 9.77 9.26 
Total capital to risk-weighted assets13.44 13.15 12.41 
Tier 1 capital to average assets7.91 7.73 7.80 
Bank Capital
Tier 1 capital to risk-weighted assets11.22 11.00 10.34 
CET1 to risk-weighted assets11.22 11.00 10.34 
Total capital to risk-weighted assets12.35 12.02 11.23 
Tier 1 capital to average assets8.95 8.70 8.70 
____________________
(1) Represents a Non-GAAP financial measure. See “Reconciliation of Non-GAAP Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
* Value results in an immaterial amount.

12

First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
Reconciliations of Non-GAAP Financial Measures
As of or for the Three Months Ended
June 30,March 31,June 30,
(Dollars in thousands, except share and per share amounts)202420242023
Tangible Common
Total shareholders' equity$246,875 $245,528 $242,242 
Less: goodwill and other intangibles, net31,741 31,797 31,977 
Tangible common equity$215,134 $213,731 $210,265 
Common shares outstanding, end of period9,660,549 9,621,309 9,545,071 
Tangible common book value per share$22.27 $22.21 $22.03 
Net income available to common shareholders1,076 2,515 1,506 
Return on tangible common equity (annualized)2.00 %4.71 %2.86 %
Efficiency
Non-interest expense$19,001 $19,696 $18,519 
Less: amortization56 57 62 
Adjusted non-interest expense$18,945 $19,639 $18,457 
Total income before non-interest expense$20,416 $23,275 $20,554 
Less: unrealized (loss)/gain recognized on equity securities(2)(6)(11)
Less: net loss on loans accounted for under the fair value option(315)(302)(1,124)
Less: impairment of contingent consideration assets— — (1,249)
Less: net gain on loans held for sale at fair value— 117 — 
Plus: provision for credit losses2,334 72 1,843 
Gross revenue$23,067 $23,538 $24,781 
Efficiency ratio82.13 %83.44 %74.48 %
Allowance for Credit Loss to Adjusted Loans
Total loans held for investment2,460,690 2,480,196 2,501,926 
Less: PPP loans3,129 3,779 5,558 
Less: loans accounted for under fair value10,494 12,276 18,274 
Adjusted loans$2,447,067 $2,464,141 $2,478,094 
Allowance for credit losses$27,319 $24,630 $22,044 
Allowance for credit losses to adjusted loans1.12 %1.00 %0.89 %


13
Second Quarter 2024 Conference Call

 
Safe Harbor 2 Statements in this presentation 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 presentation 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 presentation 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 investment securities; the risk of changes in interest rates; and the risk of the adequacy of our allowance for credit losses and the risk in our ability to maintain a strong core deposit base or other low-cost funding sources. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 15, 2024 (“Form 10-K”), and other documents we file with the SEC from time to time. We urge readers of this presentation 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 presentation, 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.

 
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 2Q24 2Q24 Earnings • Net income available to common shareholders of $1.1 million or $0.11 per diluted share • Pre-tax, pre-provision net income(1) of $3.75 million compared to prior quarter of $3.65 million. • Positive trends in a number of key areas Continued Execution on Strategic Priorities • Continued priority on prudent risk management and conservative approach to new loan production resulted in balance sheet remaining relatively flat in the quarter • Maintaining disciplined expense control with non-interest expense declining from prior quarter • Continued success in adding new deposit relationships • Strong contributions of non-interest income from wealth management and mortgage banking businesses Positive Trends in Key Metrics • Improving performance as the quarter progressed with loans, deposits, and net interest margin all increasing during the month of June • Continued progress on resolving problem loans • Non-performing loans declined from prior quarter • Net charge-offs/average loans were 0.00% • Further increase in tangible book value per share(1) (1) See Non-GAAP reconciliation 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 $1.1 million, or $0.11 diluted earnings per share, in 2Q24 • Pre-tax, pre-provision(1) net income consistent with prior quarter and same period of prior year • Tangible book value per share(1) increased approximately 0.2% to $22.27 Net Income Available to Common Shareholders Diluted Earnings per Share $1,506 $3,118 $(3,219) $2,515 $1,076 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 -$5,000 -$4,000 -$3,000 -$2,000 -$1,000 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $0.16 $0.32 $(0.34) $0.26 $0.11 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 $(0.50) $(0.25) $— $0.25 $0.50 (1) See Non-GAAP reconciliation

 
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 decreased $19.5 million from prior quarter • Decrease due to limited new production that was more than offset by payoffs • New loan production improved in 2Q24 to $50 million with focus primarily on lending to clients that also bring deposits to the bank • Average rate on new loan production of 8.35% was higher than average rate of loans paying off and accretive to NIM 2Q23 1Q24 2Q24 Cash, Securities and Other $ 150,679 $ 151,178 $ 143,720 Consumer and Other 21,866 18,556 15,645 Construction and Development 313,227 333,284 309,146 1-4 Family Residential 878,670 910,129 904,569 Non-Owner Occupied CRE 561,880 562,862 609,790 Owner Occupied CRE 218,651 194,338 189,353 Commercial and Industrial 338,679 297,573 277,973 Total $ 2,483,652 $ 2,467,920 $ 2,450,196 Loans accounted for at fair value(2) 18,274 12,276 10,494 Total Loans HFI $ 2,501,926 $ 2,480,196 $ 2,460,690 Loans held-for-sale (HFS) 19,746 10,470 26,856 Total Loans $ 2,521,672 $ 2,490,666 $ 2,487,546 (1) Represents unpaid principal balance. Excludes deferred (fees) costs, and amortized premium/ (unaccreted discount). (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) $2,487 $2,515 2,546 2,510 2,476 2,491 2,487 2Q23 3Q23 4Q23 1Q24 2Q24 1Q24 2Q24 $0 $400 $800 $1,200 $1,600 $2,000 $2,400 $2,800 $3,200 Average Period End $54.8 $101.0 $51.5 $30.6 $49.5 $76.6 $122.3 $102.2 $100.0 $100.3 Production Loan Payoffs 2Q23 3Q23 4Q23 1Q24 2Q24 $0 $50 $100 $150 ($ 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 • Average deposits decreased $41 million and period end deposits decreased $121 million from the prior quarter. The deposit decline was primarily driven by seasonal tax payments, operating account fluctuations and clients using liquidity for strategic investments • Success in new business development, with $22 million from new deposit relationships added in 2Q24 • Growth in time deposits as clients moved funds from lower-yielding deposit accounts to lock in higher rates 2Q23 1Q24 2Q24 Money market deposit accounts $ 1,297,732 $ 1,503,598 $ 1,342,753 Time deposits 376,147 442,834 519,597 NOW 168,537 132,415 135,759 Savings accounts 18,737 18,887 16,081 Noninterest-bearing accounts 514,241 434,236 396,702 Total Deposits $ 2,375,394 $ 2,531,970 $ 2,410,892 Deposit Portfolio Composition Total Deposits $2,375 $2,359 $2,372 $2,455 $2,414 $2,532 $2,411 2Q23 3Q23 4Q23 1Q24 2Q24 1Q24 2Q24 $— $500 $1,000 $1,500 $2,000 $2,500 $3,000 Average Period 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 1.8% during the quarter to $7 billion, however have increased 7.8% from 2Q23 • The decrease in AUM during the quarter was driven by asset withdrawals in custody accounts that have minimal impact on Trust and Investment Management fees • The increase from 2Q23 was primarily attributed to improving market conditions resulting in an increase in the value of AUM (in millions, as of quarter end) Total Assets Under Management $6,504 $6,396 $6,753 $7,141 $7,012 Investment Agency Managed Trust 401(k)/Retirement Directed Trust Custody Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 $— $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 Gross Revenue Gross Revenue(1) Gross Revenue(1) 8 $24.8 $23.1 $22.5 $23.5 $23.1 Wealth Management Mortgage Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 $— $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 • Gross revenue(1) decreased 2% from prior quarter • Net interest income decreased 2% from prior quarter, however net interest margin improved 1 basis point • Non-interest income decreased 4% from prior quarter, however mortgage revenues increased $0.8 million quarter over quarter and $1.1 million year over year Non-interest Income $6,972 30.6% Net Interest Income $15,778 69.4%

 
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 decreased $0.3 million, or 1.9%, from $16.1 million in 1Q24, driven primarily by a decline in interest earning cash • Net interest margin stabilized during the quarter, with a slight increase of 1 basis point from 2.34% in 1Q24 to 2.35% in 2Q24 • Yield on interest earning assets increased 9 bps from prior quarter due to impact of new loans coming on at higher rates than loans paying off • Overnight borrowings added to offset deposit outflows that will be paid off as deposit balances increase (in thousands) Net Interest Income Net Interest Margin $18,435 $16,766 $16,331 $16,070 $15,778 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 $— $5,000 $10,000 $15,000 $20,000 $25,000 2.73% 2.46% 2.37% 2.34% 2.35% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 —% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00%

 
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 decreased 4.2% from prior quarter • Stable Trust and Investment Management fees and increase in Net Gain on Mortgage Loans offset by decrease in Bank Fees, which included elevated loan prepayment penalty fees in 1Q24 • Mortgage production increased to $141 million from $91 million in prior quarter, primarily due to increased home buying activity in our markets and production from mortgage loan originators hired in 2024 (in thousands) Total Non-Interest Income Trust and Investment Management Fees $3,962 $6,099 $6,081 $7,277 $6,972 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 $(4,000) $(2,000) $— $2,000 $4,000 $6,000 $8,000 $10,000 $4,602 $4,846 $4,705 $4,930 $4,875 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 $— $2,000 $4,000 $6,000 (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 $19.0 million, primarily due to to lower legal fees resulting from continued progress on resolution of NPLs, and lower fraud losses • Non-interest expense expected to be relatively consistent over next few quarters with primary variable being incentive compensation dependent upon financial performance (1) See Non-GAAP reconciliation Total Non-Interest Expense Operating Efficiency Ratio(1) (in thousands) (1) (1) (1) $18,519 $18,314 $18,276 $19,696 $19,001 $62 $62 $62 $57 $56 Non-Interest Expense Adjustments to Non-Interest Expense Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 $— $5,000 $10,000 $15,000 $20,000 $25,000 74.48% 78.89% 80.93% 83.44% 82.13% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 —% 20.00% 40.00% 60.00% 80.00% 100.00% (1) (1) (1)(1) (1)

 
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 • NPAs increased to $49.3 million due to the foreclosure on two properties held as collateral that were placed in OREO and more than offset the resulting decrease in NPLs • Past due loans declined for the second consecutive quarter • ACL/Adjusted Total Loans(1) increased to 1.12% in 2Q24 from 1.00% in 1Q24 • Continue to experience immaterial amount of credit losses Non-Performing Assets/Total Assets Net Charge-Offs/Average Loans (1) Adjusted Total Loans – Total Loans minus PPP loans and loans accounted for under fair value option; see non-GAAP reconciliation 0.34% 1.87% 1.72% 1.57% 1.68% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 —% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% 2.20% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 —% 0.20% 0.40% 0.60% 0.80% 1.00%

 
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 • Prudent risk management and conservative underwriting criteria expected to result in modest asset growth in 2024 until economic conditions improve • Deposit gathering will remain a top priority throughout the organization with increased focus on targeting deposit rich industries • Business development focus remains on full banking relationships with high quality clients who need multiple products and services First Western provides in banking, wealth management, and other areas • Upgrading of banking talent while filling open positions is having a positive impact on pipelines for loans, deposits, mortgage banking, and wealth management • Positive trends in business development, growing pipelines, and NIM expansion experienced in June expected to result in a higher level of profitability in second half of the year • Long-term approach to managing the Company will result in continued investment in talent and technology that will support continued profitable growth along with optimization of Wealth Management business to improve performance and business development • Continued progress on working through credits placed on non-performing status • Increase in TBV/share, capital ratios, and improvement in asset quality provides flexibility to consider additional options for capital utilization including stock repurchase following authorization • Strength of franchise and balance sheet enables First Western to continue capitalizing on our attractive markets to consistently add new clients, realize more operating leverage as we increase scale, generate profitable growth, and further enhance the long-term value of our franchise

 
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 06/30/24) (1) See Non-GAAP reconciliation (2) Based on internal policy guidelines Consolidated Capital Ratios (as of 06/30/24) Tangible Common Equity / TBV per Share(1) (in thousands) Liquidity Reserves: Total Available Cash $ 244,179 Unpledged Investment Securities 33,628 Borrowed Funds: Secured: FHLB Available 551,642 FRB Available 21,048 Other: Brokered Remaining Capacity 176,380 Unsecured: Credit Lines 29,000 Total Liquidity Funding Sources $ 1,055,877 Loan to Deposit Ratio 101.9 % 9.92% 9.92% 13.44% 7.91% 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% $91,662 $104,411 $130,704 $187,139 $208,760 $210,884 $213,731 $215,134 $11.50 $13.15 $16.44 $19.87 $21.99 $22.01 $22.21 $22.27 TCE TBV/Share 4Q18 4Q19 4Q20 4Q21 4Q22 4Q23 1Q24 2Q24 $— $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 $220,000 $240,000 (2)

 
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 As of, (Dollars in thousands) Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 March 31, 2024 June 30, 2024 Total shareholders' equity $ 127,678 $ 154,962 $ 219,041 $ 240,864 $ 242,738 $ 245,528 $ 246,875 Less: Goodwill and other intangibles, net 19,714 24,258 31,902 32,104 31,854 31,797 31,741 Intangibles held for sale(1) 3,553 — — — — — — Tangible common equity $ 104,411 $ 130,704 $ 187,139 $ 208,760 $ 210,884 $ 213,731 $ 215,134 Common shares outstanding, end of period 7,940,168 7,951,773 9,419,271 9,495,440 9,581,183 9,621,309 9,660,549 Tangible common book value per share $ 13.15 $ 16.44 $ 19.87 $ 21.99 $ 22.01 $ 22.21 $ 22.27 Net income available to common shareholders $ 1,076 Return on tangible common equity (annualized) 2.00 % (1) Represents the intangible portion of assets held for sale  Consolidated Efficiency Ratio For the Three Months Ended, (Dollars in thousands) June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 Non-interest expense $ 18,519 $ 18,314 $ 18,276 $ 19,696 $ 19,001 Less: amortization 62 62 62 57 56 Adjusted non-interest expense $ 18,457 $ 18,252 $ 18,214 $ 19,639 $ 18,945 Net interest income $ 18,435 $ 16,766 $ 16,331 $ 16,070 $ 15,778 Non-interest income 3,962 6,099 6,081 7,277 6,972 Less: unrealized gains/(losses) recognized on equity securities (11) (19) (2) (6) (2) Less: impairment of contingent consideration assets (1,249) — — — — Less: net gain/(loss) on loans accounted for under the fair value option (1,124) (252) (91) (302) (315) Less: net gain on equity interests — — — — — Less: net (loss)/gain on loans held for sale at fair value — — — 117 — Adjusted non-interest income $ 6,346 $ 6,370 $ 6,174 $ 7,468 $ 7,289 Total income $ 24,781 $ 23,136 $ 22,505 $ 23,538 $ 23,067 Efficiency ratio 74.48 % 78.89 % 80.93 % 83.44 % 82.13 %

 
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 Wealth Management Gross Revenue For the Three Months Ended, (Dollars in thousands) June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 Total income before non-interest expense $ 19,529 $ 21,647 $ 13,362 $ 21,890 $ 18,242 Less: unrealized gains/(losses) recognized on equity securities (11) (19) (2) (6) (2) Less: impairment of contingent consideration assets (1,249) — — — — Less: net gain/(loss) on loans accounted for under the fair value option (1,124) (252) (91) (302) (315) Less: net gain on equity interests — — — — — Less: net (loss)/gain on loans held for sale at fair value — — — 117 — Plus: (release) provision for credit loss 1,843 329 8,493 72 2,334 Gross revenue $ 23,756 $ 22,247 $ 21,948 $ 22,153 $ 20,893 Mortgage Gross Revenue For the Three Months Ended, (Dollars in thousands) June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 Total income before non-interest expense $ 1,025 $ 889 $ 557 $ 1,385 $ 2,174 Plus: provision for credit loss — — — — — Gross revenue $ 1,025 $ 889 $ 557 $ 1,385 $ 2,174 Consolidated Gross Revenue For the Three Months Ended, (Dollars in thousands) June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 Total income before non-interest expense $ 20,554 $ 22,536 $ 13,919 $ 23,275 $ 20,416 Less: unrealized gains/(losses) recognized on equity securities (11) (19) (2) (6) (2) Less: impairment of contingent consideration assets (1,249) — — — — Less: net gain/(loss) on loans accounted for under the fair value option (1,124) (252) (91) (302) (315) Less: net gain on equity interests — — — — — Less: net (loss)/gain on loans held for sale at fair value — — — 117 — Plus: (release) provision for credit loss 1,843 329 8,493 72 2,334 Gross revenue $ 24,781 $ 23,136 $ 22,505 $ 23,538 $ 23,067 Gross Revenue excluding net gain on mortgage loans (Dollars in thousands) June 30, 2023 March 31, 2024 June 30, 2024 Gross revenue $ 24,781 $ 23,538 $ 23,067 Less: net gain on mortgage loans 774 1,264 1,820 Gross revenue excluding net gain on mortgage loans $ 24,007 $ 22,274 $ 21,247

 
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 18 Non-GAAP Reconciliation Allowance for credit losses to Bank originated loans excluding PPP As of (Dollars in thousands) June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 Total loans held for investment $ 2,501,926 $ 2,536,503 $ 2,536,140 $ 2,480,196 $ 2,460,690 Less: PPP loans 5,558 4,876 4,343 3,779 3,129 Less: Purchased loans accounted for under fair value ("FVO") 18,274 16,105 14,129 12,276 10,494 Adjusted Loans excluding acquired, PPP and FVO $ 2,478,094 $ 2,515,522 $ 2,517,668 $ 2,464,141 $ 2,447,067 Allowance for credit losses 22,044 23,175 23,931 24,630 27,319 Allowance for credit losses to adjusted loans 0.89 % 0.92 % 0.95 % 1.00 % 1.12 % Pre-tax, pre-provision net income For the Three Months Ended, (Dollars in thousands) June 30, 2023 March 31, 2024 June 30, 2024 Income before income taxes $ 2,035 $ 3,579 $ 1,415 Plus: provision (release) for credit losses 1,843 72 2,334 Pre-tax, pre-provision (release) net income $ 3,878 $ 3,651 $ 3,749

 
v3.24.2
Cover Page
Jul. 23, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 23, 2024
Entity Registrant Name FIRST WESTERN FINANCIAL, INC.
Entity Incorporation, State or Country Code CO
Entity File Number 001-38595
Entity Tax Identification Number 37-1442266
Entity Address, Address Line One 1900 16th Street
Entity Address, Address Line Two Suite 1200
Entity Address, City or Town Denver
Entity Address, State or Province CO
Entity Address, Postal Zip Code 80202
City Area Code 303
Local Phone Number 531.8100
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Title of 12(b) Security Common Stock, no par value
Trading Symbol MYFW
Security Exchange Name NASDAQ
Entity Central Index Key 0001327607
Amendment Flag false
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