• First Western Reports Fourth Quarter 2024 Financial Results

    Источник: Nasdaq GlobeNewswire / 23 янв 2025 16:45:00   America/New_York

    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, Jan. 23, 2025 (GLOBE NEWSWIRE) -- 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.

    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.

    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.

    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 assets10.07%
    Common Equity Tier 1 ("CET1") to risk-weighted assets10.07 
    Total capital to risk-weighted assets13.12 
    Tier 1 capital to average assets7.88 
      
    Bank Capital 
    Tier 1 capital to risk-weighted assets11.41%
    CET1 to risk-weighted assets11.41 
    Total capital to risk-weighted assets12.10 
    Tier 1 capital to average assets8.94 
       

    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. 

    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.

    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 

    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)
                

    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 
                

    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.

    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 
                

    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.

    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%

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