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0001327607FALSE00013276072025-01-232025-01-23

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): January 23, 2025
FIRST WESTERN FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
Colorado 001-38595 37-1442266
(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:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
o Emerging growth company
o If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol Name of each exchange on which registered
Common Stock, no par value MYFW NASDAQ Stock Market LLC


Item 2.02    Results of Operations and Financial Condition.
On January 23, 2025, First Western Financial, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter ended December 31, 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 fourth quarter ended December 31, 2024 on Friday, January 24, 2025, 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 fourth quarter ended December 31, 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
104 Cover 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: January 23, 2025 By: /s/ Scott C. Wylie
Scott C. Wylie
Chairman, Chief Executive Officer and President
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EX-99.1 2 myfw-20241231xexx991.htm EX-99.1 Document

Exhibit 99.1
myfw-20221020xex99d1001.jpg
First Western Reports Fourth Quarter 2024 Financial Results
Fourth Quarter 2024 Summary
•Net income available to common shareholders of $2.7 million in Q4 2024, compared to $2.1 million in Q3 2024
•Diluted earnings per share of $0.28 in Q4 2024, compared to $0.22 in Q3 2024
•Net interest income of $16.9 million in Q4 2024, compared to $15.6 million in Q3 2024
•Net interest margin increased 13 basis points from 2.32% in Q3 2024 to 2.45% in Q4 2024
•Total loans increased 2.1% from $2.40 billion in Q3 2024 to $2.45 billion in Q4 2024
•Average deposits increased 4.0% from $2.40 billion in Q3 2024 to $2.50 billion in Q4 2024
Denver, Colo., January 23, 2025 – First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the fourth quarter ended December 31, 2024.
Net income available to common shareholders was $2.7 million, or $0.28 per diluted share, for the fourth quarter of 2024. This compares to net income of $2.1 million, or $0.22 per diluted share, for the third quarter of 2024, and net loss of $3.2 million, or $0.34 per diluted share, for the fourth quarter of 2023.

Scott C. Wylie, CEO of First Western, commented, “We continued to execute well in the fourth quarter and generated further improvement in our level of profitability. We saw positive trends in many areas including both loan and deposit growth with our fourth quarter loan production being well diversified and the highest level we had in 2024, growth in net interest income resulting from both an increase in average interest-earning assets and expansion in our net interest margin, the highest level of insurance fees we have ever recorded in a quarter, and strong expense control. We also saw positive trends in our asset quality and we continue to make progress on selling OREO properties with the largest of the properties currently under contract for sale and expected to close during the first quarter.

“With the strength of our balance sheet and the banking talent we have added in recent quarters, we believe we are very well positioned to deliver improved financial performance in 2025. We believe the improved financial performance should be driven by positive trends in loan and deposit growth, net interest margin, non-interest income, and more operating leverage as we maintain disciplined expense control. We also expect to benefit from the redeployment of the cash we generate from the sale of the OREO properties into interest-earning assets. We believe we are well-positioned to generate profitable growth and create additional value for our shareholders in 2025 and the coming years,” said Mr. Wylie.










For the Three Months Ended
December 31, September 30, December 31,
(Dollars in thousands, except per share data) 2024 2024 2023
Earnings Summary    
Net interest income $ 16,908  $ 15,568  $ 16,331 
(Release of) provision for credit losses (974) 501  8,493 
Total non-interest income 6,459  6,972  6,081 
Total non-interest expense 20,427  19,368  18,276 
Income/(loss) before income taxes 3,914  2,671  (4,357)
Income tax expense/(benefit) 1,166  537  (1,138)
Net income/(loss) available to common shareholders 2,748  2,134  (3,219)
Basic earnings/(loss) per common share 0.28  0.22  (0.34)
Diluted earnings/(loss) per common share 0.28  0.22  (0.34)
Return on average assets (annualized) 0.38  % 0.30  % (0.45) %
Return on average shareholders' equity (annualized) 4.39  3.43  (5.17)
Return on tangible common equity (annualized)(1)
 4.98  3.93  (6.11)
Net interest margin 2.45  2.32  2.37 
Efficiency ratio(1)
 80.74  84.98  81.21 
____________________
(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 Fourth Quarter 2024
Revenue
Total income before non-interest expense was $24.3 million for the fourth quarter of 2024, compared to $22.0 million for the third quarter of 2024. Gross revenue(1) was $23.8 million for the fourth quarter of 2024, compared to $22.7 million for the third quarter of 2024. The increase in total income before non-interest expense was primarily driven by an increase in Net interest income, decrease in (Release of) provision for credit losses, and increase in Risk management and insurance fees, partially offset by a decrease in Net gain on mortgage loans. Relative to the fourth quarter of 2023, total income before non-interest expense increased 74.8% from $13.9 million. Gross revenue increased 5.8% from $22.5 million for the fourth quarter of 2023. The increase in total income before non-interest expense was primarily driven by an increase in Net interest income, decrease in (Release of) provision for credit losses, and increase in Risk management and insurance 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 fourth quarter of 2024 was $16.9 million, an increase of 8.3% from $15.6 million in the third quarter of 2024. The increase quarter over quarter was primarily driven by an increase in interest-earnings assets and a 13 basis point increase in net interest margin. Relative to the fourth quarter of 2023, net interest income increased 3.7% from $16.3 million. The increase compared to the prior year fourth quarter was primarily driven by an 8 basis point increase in net interest margin.
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Net Interest Margin
Net interest margin for the fourth quarter of 2024 increased 13 basis points to 2.45% from 2.32% reported in the third quarter of 2024, primarily due to a decrease in cost of deposits, partially offset by a decrease in interest-earning assets yield.
The yield on interest-earning assets decreased 14 basis points to 5.53% from 5.67% reported in the third quarter of 2024 and the cost of interest-bearing deposits decreased 41 basis points to 3.78% in the fourth quarter of 2024 from 4.19% reported in the third quarter of 2024.
Relative to the fourth quarter of 2023, net interest margin increased 8 basis points from 2.37%, primarily due an 11 basis point decrease in cost of funds and 2 basis point increase on interest-earning assets.
Non-interest Income
Non-interest income for the fourth quarter of 2024 was $6.5 million, a decrease of 7.1% from $7.0 million in the third quarter of 2024. The decrease was driven primarily by a decrease in Net gain on mortgage loans and increase in Net loss on loans held for sale, partially offset by an increase in Risk management and insurance fees.
Relative to the fourth quarter of 2023, non-interest income increased 6.6% from $6.1 million. The increase was driven primarily by an increase in Risk management and insurance fees, partially offset by an increase in Net loss on loans held for sale.
Non-interest Expense
Non-interest expense for the fourth quarter of 2024 was $20.4 million, an increase of 5.2% from $19.4 million in the third quarter of 2024. The increase was primarily driven by a $1.1 million Other real estate owned ("OREO") write-down, offset partially by a decrease in Salaries and employee benefits.
Relative to the fourth quarter of 2023, non-interest expense increased 11.5% from $18.3 million, driven primarily by an increase in Salaries and employee benefits due to increased front office headcount and the OREO write-down.
The Company’s efficiency ratio(1) was 80.7% in the fourth quarter of 2024, compared with 85.0% in the third quarter of 2024 and 81.2% in the fourth quarter of 2023.
(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 fourth quarter of 2024, compared to Income tax expense of $0.5 million for the third quarter of 2024 and Income tax benefit of $1.1 million for the fourth quarter of 2023. The increase in the fourth quarter of 2024 compared to the third quarter of 2024 was primarily attributable to the increase in taxable income and a third quarter change in temporary tax differences.    
Loans
Total loans held for investment were $2.43 billion as of December 31, 2024, an increase of 1.7% from $2.39 billion as of September 30, 2024. The increase was primarily due to net growth in the 1 - 4 family residential and construction and development portfolios, offset partially by net decrease in the commercial and industrial portfolio. Relative to the fourth quarter of 2023, total loans held for investment decreased from $2.54 billion as of December 31, 2023.
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Deposits
Total deposits were $2.51 billion as of December 31, 2024, an increase of 0.4% from $2.50 billion as of September 30, 2024. The increase was driven primarily by expanded deposit relationships. Relative to the fourth quarter of 2023, total deposits decreased from $2.53 billion as of December 31, 2023, driven primarily by a decrease in Noninterest-bearing deposits. Total average deposits were $2.50 billion for the fourth quarter of 2024, an increase of 4.0% from $2.40 billion for the third quarter of 2024. The increase was driven by average interest-bearing deposits increasing $87.9 million and noninterest-bearing deposits increasing $7.7 million throughout the quarter.
Borrowings
Federal Home Loan Bank (“FHLB”) and Federal Reserve borrowings were a combined $57.0 million as of December 31, 2024, a decrease of $5.4 million from $62.4 million as of September 30, 2024. The change when compared to September 30, 2024 was primarily driven by paying off the Bank Term Funding Program ("BTFP") loan in the quarter. Relative to the fourth quarter of 2023, borrowings decreased $68.7 million from $125.7 million as of December 31, 2023. The decrease in borrowings from December 31, 2023 was primarily driven by BTFP payoffs and net pay downs on the Company's FHLB line of credit.
Subordinated notes were $52.6 million as of December 31, 2024, compared to $52.5 million as of September 30, 2024. Subordinated notes increased $0.3 million from $52.3 million as of December 31, 2023.
Assets Under Management

Assets Under Management (“AUM”) decreased to $7.32 billion as of December 31, 2024, compared to $7.47 billion as of September 30, 2024. The decrease in AUM during the quarter was primarily attributable to net withdrawals and lower market values at the end of the fourth quarter of 2024. Total AUM increased from $6.75 billion as of December 31, 2023. The increase when compared to December 31, 2023 was primarily attributable to improving market conditions resulting in an increase in the value of AUM.
Credit Quality
Non-performing assets totaled $49.0 million, or 1.68% of total assets, as of December 31, 2024, compared to $52.1 million, or 1.79% of total assets, as of September 30, 2024. The decrease in non-performing assets during the quarter was primarily due to pay downs, the migration of one non-performing loan into performing, and the write-down of OREO. As of December 31, 2023, non-performing assets totaled $51.1 million, or 1.72% of total assets. Relative to the fourth quarter of 2023, the decrease in non-performing assets was primarily driven by pay downs, charge-offs, write-downs, and the sale of a non-performing loan, partially offset by additions to Other real estate owned ("OREO") and non-performing loans. OREO totaled $35.9 million as of December 31, 2024 a decrease of $1.1 million from $37.0 million as of September 30, 2024 due to a write-down during the quarter. As of December 31, 2023, the Company held no OREO.
Non-performing loans totaled $13.1 million as of December 31, 2024, a decrease of $1.9 million from $15.0 million as of September 30, 2024. The decrease was primarily due to pay downs and the migration of one non-performing loan into performing. As of December 31, 2023, non-performing loans totaled $51.1 million. The decrease when compared to December 31, 2023 was driven by the migration of one loan relationship out of non-performing loans and into OREO, pay downs, charge-offs, write-downs, and the sale of a non-performing loan, partially offset by additions to non-performing loans.
During the fourth quarter of 2024, the Company recorded a provision release of $1.0 million, compared to a provision expense of $0.5 million in the third quarter of 2024 and $8.5 million in the fourth quarter of 2023. The decrease in provision expense recorded in the fourth quarter of 2024 compared to the third quarter of 2024 was primarily driven by decreased provision on pooled loans. The decrease in provision expense recorded in the fourth quarter of 2024 compared to the fourth quarter of 2023 was primarily driven by decreased provision on individually analyzed loans.
4

Capital
As of December 31, 2024, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of December 31, 2024, the Bank was classified as “well capitalized,” as summarized in the following table:
December 31,
2024
Consolidated Capital
Tier 1 capital to risk-weighted assets 10.07  %
Common Equity Tier 1 ("CET1") to risk-weighted assets 10.07 
Total capital to risk-weighted assets 13.12 
Tier 1 capital to average assets 7.88 
Bank Capital
Tier 1 capital to risk-weighted assets 11.41  %
CET1 to risk-weighted assets 11.41 
Total capital to risk-weighted assets 12.10 
Tier 1 capital to average assets 8.94 
Book value per common share increased 1.4% from $25.75 as of September 30, 2024 to $26.10 as of December 31, 2024. Book value per common share increased 3.0% from $25.33 as of December 31, 2023.
Tangible book value per common share(1) increased 1.6% from $22.47 as of September 30, 2024, to $22.83 as of December 31, 2024. Tangible book value per common share increased 3.7% from $22.01 as of December 31, 2023.
(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, January 24, 2025. Telephone access: https://register.vevent.com/register/BI702bcd8ae8464babb1e22addf0195689.
A slide presentation relating to the fourth 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.
5

Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include “Tangible Common Equity,” “Tangible Common Book Value per Share,” “Return on Tangible Common Equity,” “Efficiency Ratio,” “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; 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
7

First Western Financial, Inc.
Condensed Consolidated Statements of Income (unaudited)
Three Months Ended
December 31, September 30, December 31,
(Dollars in thousands, except per share amounts) 2024 2024 2023
Interest and dividend income:
Loans, including fees $ 34,287  $ 35,353  $ 35,625 
Loans accounted for under the fair value option 118  141  257 
Debt securities 696  708  600 
Interest-bearing deposits in other financial institutions 2,879  1,754  1,350 
Dividends, restricted stock 129  134  161 
Total interest and dividend income 38,109  38,090  37,993 
Interest expense:
Deposits 19,921  21,150  19,037 
Other borrowed funds 1,280  1,372  2,625 
Total interest expense 21,201  22,522  21,662 
Net interest income 16,908  15,568  16,331 
Less: (Release of) provision for credit losses (974) 501  8,493 
Net interest income, after (release of) provision for credit losses 17,882  15,067  7,838 
Non-interest income:
Trust and investment management fees 4,660  4,728  4,705 
Net gain on mortgage loans 377  1,451  379 
Net loss on loans held for sale (222) —  — 
Bank fees 426  392  412 
Risk management and insurance fees 1,139  367  544 
Income on company-owned life insurance 112  108  101 
Net loss on loans accounted for under the fair value option (149) (233) (91)
Unrealized (loss) gain recognized on equity securities (49) 24  (2)
Other 165  135  33 
Total non-interest income 6,459  6,972  6,081 
Total income before non-interest expense 24,341  22,039  13,919 
Non-interest expense:
Salaries and employee benefits 11,237  11,439  9,988 
Occupancy and equipment 2,100  2,126  1,937 
Professional services 1,821  1,893  1,990 
Technology and information systems 1,073  1,045  928 
Data processing 1,029  1,101  1,189 
Marketing 397  374  415 
Amortization of other intangible assets 56  57  62 
Other 2,714  1,333  1,767 
Total non-interest expense 20,427  19,368  18,276 
Income/(loss) before income taxes 3,914  2,671  (4,357)
Income tax expense/(benefit) expense 1,166  537  (1,138)
Net income/(loss) available to common shareholders $ 2,748  $ 2,134  $ (3,219)
Earnings (loss) per common share:
Basic $ 0.28  $ 0.22  $ (0.34)
Diluted 0.28  0.22  (0.34)
8

First Western Financial, Inc.
Condensed Consolidated Balance Sheets (unaudited)
December 31, September 30, December 31,
(Dollars in thousands) 2024 2024 2023
Assets
Cash and cash equivalents:
Cash and due from banks $ 9,770  $ 18,979  $ 7,284 
Interest-bearing deposits in other financial institutions 226,271  257,243  247,158 
Total cash and cash equivalents 236,041  276,222  254,442 
Held-to-maturity debt securities (fair value of $68,161, $70,826 and $66,617, respectively), net of allowance for credit losses of $71
75,724  76,745  74,102 
Correspondent bank stock, at cost 5,864  5,746  7,155 
Mortgage loans held for sale, at fair value 25,455  12,324  7,254 
Loans held for sale, at fair value 251  473  — 
Loans (includes $7,283, $8,646, and $13,726 measured at fair value, respectively)
 2,425,565  2,383,199  2,530,915 
Allowance for credit losses (18,330) (18,796) (23,931)
Loans, net 2,407,235  2,364,403  2,506,984 
Premises and equipment, net 24,129  24,350  25,256 
Accrued interest receivable 10,364  10,455  11,428 
Accounts receivable 4,763  4,864  5,095 
Other receivables 5,710  10,397  4,467 
Other real estate owned, net 35,929  37,036  — 
Goodwill and other intangible assets, net 31,627  31,684  31,854 
Deferred tax assets, net 3,079  4,075  6,407 
Company-owned life insurance 16,961  16,849  16,530 
Other assets 35,905  36,325  24,488 
Total assets $ 2,919,037  $ 2,911,948  $ 2,975,462 
Liabilities    
Deposits:      
Noninterest-bearing $ 375,603  $ 473,576  $ 482,579 
Interest-bearing 2,138,606  2,029,478  2,046,460 
Total deposits 2,514,209  2,503,054  2,529,039 
Borrowings:      
Federal Home Loan Bank and Federal Reserve borrowings 57,038  62,373  125,711 
Subordinated notes 52,565  52,508  52,340 
Accrued interest payable 1,995  3,339  3,793 
Other liabilities 40,908  41,843  21,841 
Total liabilities 2,666,715  2,663,117  2,732,724 
Shareholders’ Equity      
Total shareholders’ equity 252,322  248,831  242,738 
Total liabilities and shareholders’ equity $ 2,919,037  $ 2,911,948  $ 2,975,462 
9

First Western Financial, Inc.
Consolidated Financial Summary (unaudited)
December 31, September 30, December 31,
(Dollars in thousands) 2024 2024 2023
Loan Portfolio
Cash, Securities, and Other(1)
 $ 120,005  $ 116,856  $ 140,053 
Consumer and Other 17,333  14,978  31,296 
Construction and Development 315,686  301,542  347,515 
1-4 Family Residential 960,354  920,709  925,984 
Non-Owner Occupied CRE 614,384  608,494  546,966 
Owner Occupied CRE 173,223  176,165  197,205 
Commercial and Industrial 220,501  239,660  336,842 
Total 2,421,486  2,378,404  2,525,861 
Loans accounted for under the fair value option 7,508  8,884  14,129 
Total loans held for investment 2,428,994  2,387,288  2,539,990 
Deferred (fees) costs and unamortized premiums/(unaccreted discounts), net(2)
 (3,429) (4,089) (9,075)
Loans (includes $7,283, $8,646, and $13,726 measured at fair value, respectively)
 $ 2,425,565  $ 2,383,199  $ 2,530,915 
Mortgage loans held for sale 25,455  12,324  7,254 
Loans held for sale 251  473  — 
Deposit Portfolio
Money market deposit accounts $ 1,513,605  $ 1,350,619  $ 1,386,149 
Time deposits 471,415  533,452  496,452 
Interest checking accounts 139,374  130,255  147,488 
Savings accounts 14,212  15,152  16,371 
Total interest-bearing deposits 2,138,606  2,029,478  2,046,460 
Noninterest-bearing accounts 375,603  473,576  482,579 
Total deposits $ 2,514,209  $ 2,503,054  $ 2,529,039 
____________________
(1) Includes PPP loans of $2.1 million as of December 31, 2024, $2.6 million as of September 30, 2024, and $4.3 million as of December 31, 2023.
(2) Includes fair value adjustments on loans held for investment accounted for under the fair value option.

10

First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
As of or for the Three Months Ended
December 31, September 30, December 31,
(Dollars in thousands) 2024 2024 2023
Average Balance Sheets
Assets
Interest-earning assets:
Interest-bearing deposits in other financial institutions $ 236,152  $ 129,629  $ 104,789 
Debt securities 77,464  79,007  76,331 
Correspondent bank stock 5,738  6,281  7,576 
Loans 2,386,070  2,429,927  2,521,532 
Mortgage loans held for sale 26,623  18,423  9,915 
Loans held at fair value 8,136  9,691  14,755 
Total interest-earning assets 2,740,183  2,672,958  2,734,898 
Allowance for credit losses (19,403) (27,236) (23,308)
Noninterest-earning assets 181,186  161,072  126,132 
Total assets $ 2,901,966  $ 2,806,794  $ 2,837,722 
Liabilities and Shareholders’ Equity   
Interest-bearing liabilities:   
Interest-bearing deposits $ 2,095,204  $ 2,007,265  $ 1,914,856 
FHLB and Federal Reserve borrowings 54,428  62,589  139,316 
Subordinated notes 52,528  52,470  52,299 
Total interest-bearing liabilities 2,202,160  2,122,324  2,106,471 
Noninterest-bearing liabilities:    
Noninterest-bearing deposits 403,433  395,755  456,787 
Other liabilities 45,889  40,089  25,387 
Total noninterest-bearing liabilities 449,322  435,844  482,174 
Total shareholders’ equity 250,484  248,626  249,077 
Total liabilities and shareholders’ equity $ 2,901,966  $ 2,806,794  $ 2,837,722 
Yields/Cost of funds (annualized)
Interest-bearing deposits in other financial institutions 4.85  % 5.38  % 5.11  %
Debt securities 3.57  3.57  3.12 
Correspondent bank stock 8.94  8.49  8.43 
Loans 5.65  5.74  5.58 
Loan held at fair value 5.77  5.79  6.91 
Mortgage loans held for sale 6.02  5.87  6.60 
Total interest-earning assets 5.53  5.67  5.51 
Interest-bearing deposits 3.78  4.19  3.94 
Total deposits 3.17  3.50  3.18 
FHLB and Federal Reserve borrowings 3.96  4.03  5.36 
Subordinated notes 5.59  5.60  5.63 
Total interest-bearing liabilities 3.83  4.22  4.08 
Net interest margin 2.45  2.32  2.37 
Net interest rate spread 1.70  1.45  1.43 
11

First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
As of or for the Three Months Ended
December 31, September 30, December 31,
(Dollars in thousands, except share and per share amounts) 2024 2024 2023
Asset Quality
Non-performing loans $ 13,052  $ 15,031  $ 51,125 
Non-performing assets 48,981  52,067  51,125 
Net charge-offs (recoveries) (270) 9,319  8,595 
Non-performing loans to total loans 0.54  % 0.63  % 2.02  %
Non-performing assets to total assets 1.68  1.79  1.72 
Allowance for credit losses to non-performing loans 140.44  125.05  46.81 
Allowance for credit losses to total loans 0.76  0.79  0.95 
Allowance for credit losses to adjusted loans(1)
 0.76  0.79  0.95 
Net charge-offs (recoveries) to average loans (0.01) 0.38  0.34
Assets Under Management $ 7,321,147  $ 7,465,757  $ 6,752,981 
Market Data
Book value per share at period end $ 26.10  $ 25.75  $ 25.33 
Tangible book value per common share(1)
22.83  22.47  22.01 
Weighted average outstanding shares, basic 9,665,621  9,663,131  9,572,582 
Weighted average outstanding shares, diluted 9,794,797  9,825,515  9,572,582 
Shares outstanding at period end 9,667,142  9,664,101  9,581,183 
Consolidated Capital
Tier 1 capital to risk-weighted assets 10.07  % 10.06  % 9.40  %
CET1 to risk-weighted assets 10.07  10.06  9.40 
Total capital to risk-weighted assets 13.12  13.19  12.59 
Tier 1 capital to average assets 7.88  8.04  7.77 
Bank Capital
Tier 1 capital to risk-weighted assets 11.41  % 11.39  % 10.54  %
CET1 to risk-weighted assets 11.41  11.39  10.54 
Total capital to risk-weighted assets 12.10  12.13  11.45 
Tier 1 capital to average assets 8.94  9.11  8.71 
____________________
(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.


12

First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
Reconciliations of Non-GAAP Financial Measures
As of or for the Three Months Ended
December 31, September 30, December 31,
(Dollars in thousands, except share and per share amounts) 2024 2024 2023
Tangible Common
Total shareholders' equity $ 252,322  $ 248,831  $ 242,738 
Less: goodwill and other intangibles, net 31,627  31,684  31,854 
Tangible common equity $ 220,695  $ 217,147  $ 210,884 
Common shares outstanding, end of period 9,667,142  9,664,101  9,581,183 
Tangible common book value per share $ 22.83  $ 22.47  $ 22.01 
Net income/(loss) available to common shareholders 2,748  2,134  (3,219)
Return on tangible common equity (annualized) 4.98  % 3.93  % (6.11) %
Efficiency
Non-interest expense $ 20,427  $ 19,368  $ 18,276 
Less: OREO expenses and write-downs 1,222  35  — 
Adjusted non-interest expense $ 19,205  $ 19,333  $ 18,276 
Total income before non-interest expense $ 24,341  $ 22,039  $ 13,919 
Less: unrealized (loss)/gain recognized on equity securities (49) 24  (2)
Less: net loss on loans accounted for under the fair value option (149) (233) (91)
Less: net loss on loans held for sale (222) —  — 
Plus: (release of) provision for credit losses (974) 501  8,493 
Gross revenue $ 23,787  $ 22,749  $ 22,505 
Efficiency ratio 80.74  % 84.98  % 81.21  %
Allowance for Credit Loss to Adjusted Loans
Total loans held for investment $ 2,428,994  $ 2,387,288  $ 2,539,990 
Less: PPP loans 2,087  2,603  4,343 
Less: loans accounted for under fair value 7,508  8,884  14,129 
Adjusted loans $ 2,419,399  $ 2,375,801  $ 2,521,518 
Allowance for credit losses $ 18,330  $ 18,796  $ 23,931 
Allowance for credit losses to adjusted loans 0.76  % 0.79  % 0.95  %


13
EX-99.2 3 myfw-20250123xex992a01.htm EX-99.2 myfw-20250123xex992a01
Fourth Quarter 2024 Conference Call

 
Safe Harbor 2 This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the current views of First Western Financial, Inc.’s (“First Western”) management with respect to, among other things, future events and First Western’s financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “position,” “project,” “future” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about First Western’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond First Western’s control. Accordingly, First Western cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although First Western believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. The following risks and uncertainties, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: integration risks 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 and other documents we file with the SEC from time to time. All subsequent written and oral forward- looking statements attributable to First Western or persons acting on First Western’s behalf are expressly qualified in their entirety by this paragraph. Forward-looking statements speak only as of the date of this presentation. First Western undertakes no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise (except as required by law). This presentation contains certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of this presentation. Numbers in the presentation may not sum due to rounding. Our common stock is not a deposit or savings account. Our common stock is not insured by the Federal Deposit Insurance Corporation or any governmental agency or instrumentality. This presentation is not an offer to sell any securities and it is not soliciting an offer to buy any securities in any state or jurisdiction where the offer or sale is not permitted. Neither the SEC nor any state securities commission has approved or disapproved of the securities of the Company or passed upon the accuracy or adequacy of this presentation. Any representation to the contrary is a criminal offense. Except as otherwise indicated, this presentation speaks as of the date hereof. The delivery of this presentation shall not, under any circumstances, create any implication that there has been no change in the affairs of the Company after the date hereof.

 
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato(regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions Overview of 4Q24 4Q24 Earnings • Net income available to common shareholders of $2.7 million or $0.28 per diluted share • Net interest income after provision for credit losses improved to $17.9 million compared to prior quarter of $15.1 million • Positive trends in a number of key areas resulted in improvement in profitability from prior quarter Continued Execution on Strategic Priorities • Continued priority on prudent risk management and conservative approach to new loan production, but contributions of new banking talent helped drive fourth quarter new loan production to highest level in 2024 • Maintaining disciplined expense control while continuing to make investments in the business that will support profitable growth in the future • Positive trends in asset quality with declines in non-performing loans and non-performing assets • Continued success in deposit gathering efforts with increase in total deposits during 4Q24 Positive Trends in Key Metrics • Continued progress on resolving problem loans with largest OREO now under contract for sale • Further increase in tangible book value per share • Improvement in NIM from prior quarter and expectation of continued improvement due primarily to improved cost of funds • Record quarter of Risk management and insurance fees 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 $2.7 million, or $0.28 diluted earnings per share, in 4Q24 • Provision for credit losses decreased $1.5 million in 4Q24 • Tangible book value per share(1) increased 1.6% to $22.83 Net Income Available to Common Shareholders Diluted Earnings per Share $(3,219) $2,515 $1,076 $2,134 $2,748 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 $(5,000) $(4,000) $(3,000) $(2,000) $(1,000) $0 $1,000 $2,000 $3,000 $4,000 $5,000 $(0.34) $0.26 $0.11 $0.22 $0.28 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 $(0.50) $(0.25) $— $0.25 $0.50 (1) See Non-GAAP reconciliation within the appendix

 
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 5 Loan Portfolio • Total loans held for investment increased $41.7 million from prior quarter, reversing our five quarter average loan balance decline • Loan growth driven by higher level of new loan production and increased utilization of existing lines of credit • New loan production improved in 4Q24 to $93.5 million with focus primarily on lending to clients that also bring deposits to the bank • Average rate on new loan production of 7.44% was higher than average rate of loans paying off and accretive to NIM 4Q23 3Q24 4Q24 Cash, Securities and Other $ 140,053 $ 116,856 $ 120,005 Consumer and Other 31,296 14,978 17,333 Construction and Development 347,515 301,542 315,686 1-4 Family Residential 925,984 920,709 960,354 Non-Owner Occupied CRE 546,966 608,494 614,384 Owner Occupied CRE 197,205 176,165 173,223 Commercial and Industrial 336,842 239,660 220,501 Total $ 2,525,861 $ 2,378,404 $ 2,421,486 Loans accounted for at fair value(2) 14,129 8,884 7,508 Total Loans HFI $ 2,539,990 $ 2,387,288 $ 2,428,994 Mortgage loans held for sale 7,254 12,324 25,455 Loans held for sale — 473 251 Total Loans $ 2,547,244 $ 2,400,085 $ 2,454,700 (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) $2,546 $2,510 $2,476 $2,458 $2,421 $2,400 $2,455 4Q23 1Q24 2Q24 3Q24 4Q24 3Q24 4Q24 $0 $400 $800 $1,200 $1,600 $2,000 $2,400 $2,800 $3,200 Average Period End $51.5 $30.6 $49.5 $82.8 $93.5 $102.2 $100.0 $100.3 $153.8 $97.1 Production Loan Payoffs 4Q23 1Q24 2Q24 3Q24 4Q24 $0 $50 $100 $150 $200 ($ in millions) ($ in millions, as of quarter end)

 
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 6 Total Deposits • Total average deposits increased 4.0% from $2.40 billion in 3Q24 to $2.50 billion in 4Q24. The increase was driven by average interest-bearing and noninterest-bearing growth • Total deposits increased 0.4% from $2.50 billion in 3Q24 to $2.51 billion in 4Q24 • Noninterest-bearing deposits decreased 20.7% from $474 million in 3Q24 to $376 million in 4Q24 primarily due to operating account fluctuations, migration to interest-bearing, and seasonal outflows • Interest-bearing deposits increased 5.4% from $2.03 billion in 3Q24 to $2.14 billion in 4Q24 primarily driven by migration from noninterest-bearing and expanded deposit relationships 4Q23 3Q24 4Q24 Money market deposit accounts $ 1,386,149 $ 1,350,619 $ 1,513,605 Time deposits 496,452 533,452 471,415 Interest checking accounts 147,488 130,255 139,374 Savings accounts 16,371 15,152 14,212 Noninterest-bearing accounts 482,579 473,576 375,603 Total Deposits $ 2,529,039 $ 2,503,054 $ 2,514,209 Deposit Portfolio Composition Total Deposits $2,372 $2,455 $2,414 $2,403 $2,499 $2,503 $2,514 4Q23 1Q24 2Q24 3Q24 4Q24 3Q24 4Q24 $— $500 $1,000 $1,500 $2,000 $2,500 $3,000 Average Period End ($ in millions, as of quarter end)($ in thousands, as of quarter end)

 
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 7 Trust and Investment Management • Total assets under management decreased 1.9% during the quarter to $7.3 billion and increased 8.4% from 4Q23 • The decrease in AUM from 3Q24 was primarily attributed to net withdrawals and lower market values at the end of the fourth quarter of 2024 ($ in millions, as of quarter end) Total Assets Under Management $6,753 $7,141 $7,012 $7,466 $7,321 Investment Agency Managed Trust 401(k)/Retirement Directed Trust Custody Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 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 within the appendix Gross Revenue Gross Revenue(1) Gross Revenue(1) 8 $22.5 $23.5 $23.1 $22.7 $23.8 Wealth Management Mortgage Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 $— $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 • Gross revenue(1) increased 4.8% from prior quarter • Net interest income increased 8.3% from prior quarter primarily driven by NIM expansion and growth in interest-earning assets • Non-interest income declined $0.5 million driven by lower net mortgage gain and a write-down on one loan held for sale, offset partially by higher Risk management and insurance fees Non-interest Income $6,459 27.6% Net Interest Income $16,908 72.4% ($ in thousands) ($ in millions)

 
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 9 Net Interest Income and Net Interest Margin • Net interest income increased $1.3 million, or 8.3%, from $15.6 million in 3Q24 to $16.9 million, primarily driven by an increase in interest-earnings assets and a 13 basis point increase in net interest margin • Net interest margin increased 13 basis points during the quarter from 2.32% in 3Q24 to 2.45% in 4Q24, primarily due to a decrease in cost of deposits, partially offset by a decrease in interest-earning assets yield Net Interest Income Net Interest Margin $16,331 $16,070 $15,778 $15,568 $16,908 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 $— $5,000 $10,000 $15,000 $20,000 $25,000 2.37% 2.34% 2.35% 2.32% 2.45% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 —% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% ($ in thousands)

 
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 10 Non-Interest Income • Non-interest income decreased $0.5 million to $6.5 million from the prior quarter driven by a decrease in Net gain on mortgage loans and a write-down on one loan held for sale, offset partially by an increase in Risk management and insurance fees • Record quarter of Risk management and insurance fees of $1.1 million, which doubled the level recorded in 4Q23 • Higher mortgage rates and seasonality in Colorado drove a 35% reduction in lock volume quarter over quarter • Non-interest income increased $0.4 million from 4Q23, primarily due to the record quarter in risk management and insurance fees Total Non-Interest Income Trust and Investment Management Fees $6,081 $7,277 $6,972 $6,972 $6,459 Trust and Investment Management Fees Bank Fees Net Gain on Mortgage Loans Risk Management and Insurance Fees Other Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 $(4,000) $(2,000) $— $2,000 $4,000 $6,000 $8,000 $10,000 $4,705 $4,930 $4,875 $4,728 $4,660 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 $— $2,000 $4,000 $6,000 ($ in thousands) ($ in thousands)

 
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 11 Non-Interest Expense and Efficiency Ratio • Non-interest expense increased to $20.4 million from $19.4 million in the third quarter, primarily driven driven by a $1.1 million write-down on OREO driven by updated appraisals received during the quarter, partially offset by decreases in Salaries and employee benefits • Non-interest expense excluding OREO expenses and write-downs decreased to $19.2 million from $19.4 million in the third quarter • The efficiency ratio improved in the quarter from 84.98% as of 3Q24 to 80.74% as of 4Q24 (1) See Non-GAAP reconciliation within the appendix Adjusted Non-Interest Expense(1) Operating Efficiency Ratio(1) (1) (1) (1) $18,276 $19,696 $18,972 $19,333 $19,205 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 $— $5,000 $10,000 $15,000 $20,000 $25,000 81.21% 83.68% 82.25% 84.98% 80.74% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 —% 20.00% 40.00% 60.00% 80.00% 100.00%($ in thousands)

 
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 12 Asset Quality • NPAs decreased $3.1 million to $49.0 million due to pay downs, the migration of one non-performing loan into performing, and the write-down of OREO • NPLs decreased $1.9 million to $13.1 million due to pay downs and the migration of one non-performing loan into performing • NPA/Total Assets of 0.80% when excluding OREO under contract that is anticipated to close in 1Q25 • ACL/Adjusted Total Loans(1) decreased from 0.79% in 3Q24 to 0.76% in 4Q24, primarily driven by decreased provision on pooled loans Non-Performing Assets/Total Assets Net Charge-Offs (Recoveries)/Average Loans (1) Adjusted Total Loans – Total Loans minus PPP loans and loans accounted for under fair value option; see Non-GAAP reconciliation within the appendix 1.72% 1.57% 1.68% 1.79% 1.68% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 —% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% 2.20% 0.34% —% —% 0.38% (0.01)% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 (0.20)% (0.10)% —% 0.10% 0.20% 0.30% 0.40% 0.50%

 
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 2025 Outlook and Priorities • First Western's markets continue to perform well and the strength of our balance sheet and franchise provides opportunities to capitalize on market disruption and challenges being faced by competing banks to add new clients and banking talent • Addition of banking talent over past several quarters should lead to higher level of loan growth in 2025 while still maintaining disciplined underwriting and pricing criteria • Deposit gathering will remain a top priority throughout the organization • Expected drivers of improved financial performance in 2025 ◦ Increased loan growth ◦ Continued expansion in net interest margin ◦ Redeployment of cash generated from sale of OREO properties into interest-earning assets ◦ More robust business development activities in Wealth Management business ◦ More operating leverage resulting from disciplined expense control • Addition of MLOs will positively impact mortgage banking fees if environment is favorable for loan demand in 2025 • Positive trends in key areas expected to continue, which should result in steady improvement in financial performance and further value being created for shareholders

 
Appendix 14

 
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 15 Capital and Liquidity Overview Liquidity Funding Sources (as of 12/31/24) (1) See Non-GAAP reconciliation within the appendix (2) Based on internal policy guidelines Consolidated Capital Ratios (as of 12/31/24) Tangible Common Equity / TBV per Share(1) ($ in thousands) Liquidity Reserves: Total Available Cash $ 234,400 Unpledged Investment Securities 37,077 Borrowed Funds: Secured: FHLB Available 581,994 FRB Available 28,290 Other: Brokered Remaining Capacity 244,318 Unsecured: Credit Lines 29,000 Total Liquidity Funding Sources $ 1,155,079 Loan-to-Deposit Ratio 96.5 % 10.07% 10.07% 13.12% 7.88% Tier 1 Capital to Risk- Weighted Assets CET1 to Risk- Weighted Assets Total Capital to Risk- Weighted Assets Tier 1 Capital to Average Assets —% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% $104,411 $130,704 $187,139 $208,760 $210,884 $213,731 $215,134 $217,147 $220,695 $13.15 $16.44 $19.87 $21.99 $22.01 $22.21 $22.27 $22.47 $22.83 TCE TBV/Share 4Q19 4Q20 4Q21 4Q22 4Q23 1Q24 2Q24 3Q24 4Q24 $— $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) (TCE $ 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 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 Mar. 31, 2024 Jun. 30, 2024 Sept. 30, 2024 Dec. 31, 2024 Total shareholders' equity $ 127,678 $ 154,962 $ 219,041 $ 240,864 $ 242,738 $ 245,528 $ 246,875 $ 248,831 $ 252,322 Less: Goodwill and other intangibles, net 19,714 24,258 31,902 32,104 31,854 31,797 31,741 31,684 31,627 Intangibles held for sale(1) 3,553 — — — — — — — — Tangible common equity $ 104,411 $ 130,704 $ 187,139 $ 208,760 $ 210,884 $ 213,731 $ 215,134 $ 217,147 $ 220,695 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 9,664,101 9,667,142 Tangible common book value per share $ 13.15 $ 16.44 $ 19.87 $ 21.99 $ 22.01 $ 22.21 $ 22.27 $ 22.47 $ 22.83 Net income available to common shareholders $ 2,748 Return on tangible common equity (annualized) 4.98 % (1) Represents the intangible portion of assets held for sale  Consolidated Efficiency Ratio For the Three Months Ended, (Dollars in thousands) December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Non-interest expense $ 18,276 $ 19,696 $ 19,001 $ 19,368 $ 20,427 Less: OREO expenses and write-downs — — 29 35 1,222 Adjusted non-interest expense $ 18,276 $ 19,696 $ 18,972 $ 19,333 $ 19,205 Net interest income $ 16,331 $ 16,070 $ 15,778 $ 15,568 $ 16,908 Non-interest income 6,081 7,277 6,972 6,972 6,459 Less: unrealized (loss)/gain recognized on equity securities (2) (6) (2) 24 (49) Less: net loss on loans accounted for under the fair value option (91) (302) (315) (233) (149) Less: net gain/(loss) on loans held for sale — 117 — — (222) Adjusted non-interest income $ 6,174 $ 7,468 $ 7,289 $ 7,181 $ 6,879 Adjusted total income $ 22,505 $ 23,538 $ 23,067 $ 22,749 $ 23,787 Efficiency ratio 81.21 % 83.68 % 82.25 % 84.98 % 80.74 %

 
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) December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Total income before non-interest expense $ 13,362 $ 21,890 $ 18,242 $ 20,296 $ 23,540 Less: unrealized (loss)/gain recognized on equity securities (2) (6) (2) 24 (49) Less: net loss on loans accounted for under the fair value option (91) (302) (315) (233) (149) Less: net gain/(loss) on loans held for sale at fair value — 117 — — (222) Plus: provision for (release of) credit losses 8,493 72 2,334 501 (974) Gross revenue $ 21,948 $ 22,153 $ 20,893 $ 21,006 $ 22,986 Mortgage Gross Revenue For the Three Months Ended, (Dollars in thousands) December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Total income before non-interest expense $ 557 $ 1,385 $ 2,174 $ 1,743 $ 801 Gross revenue $ 557 $ 1,385 $ 2,174 $ 1,743 $ 801 Consolidated Gross Revenue For the Three Months Ended, (Dollars in thousands) December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Total income before non-interest expense $ 13,919 $ 23,275 $ 20,416 $ 22,039 $ 24,341 Less: unrealized (loss)/gain recognized on equity securities (2) (6) (2) 24 (49) Less: net loss on loans accounted for under the fair value option (91) (302) (315) (233) (149) Less: net gain/(loss) on loans held for sale at fair value — 117 — — (222) Plus: provision for (release of) credit losses 8,493 72 2,334 501 (974) Gross revenue $ 22,505 $ 23,538 $ 23,067 $ 22,749 $ 23,787

 
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) December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Total loans held for investment $ 2,539,990 $ 2,480,196 $ 2,460,690 $ 2,387,288 $ 2,428,994 Less: PPP loans 4,343 3,779 3,129 2,603 2,087 Less: Purchased loans accounted for under fair value options ("FVO") 14,129 12,276 10,494 8,884 7,508 Adjusted loans excluding PPP and FVO $ 2,521,518 $ 2,464,141 $ 2,447,067 $ 2,375,801 $ 2,419,399 Allowance for credit losses 23,931 24,630 27,319 18,796 18,330 Allowance for credit losses to adjusted loans 0.95 % 1.00 % 1.12 % 0.79 % 0.76 % Pre-tax, Pre-Provision Net Income For the Three Months Ended, (Dollars in thousands) December 31, 2023 September 30, 2024 December 31, 2024 (Loss)/Income before income taxes $ (4,357) $ 2,671 $ 3,914 Plus: provision for (release of) credit losses 8,493 501 (974) Pre-tax, pre-provision net income $ 4,136 $ 3,172 $ 2,940