0001327607FALSE00013276072024-10-242024-10-24

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): October 24, 2024
FIRST WESTERN FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
Colorado001-3859537-1442266
(State or other jurisdiction of
incorporation or organization)		(Commission
File Number)		(I.R.S. Employer
Identification No.)
1900 16th Street, Suite 1200
Denver, Colorado
80202
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: 303.531.8100
Former name or former address, if changed since last report: Not Applicable
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
oEmerging growth company
oIf an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, no par valueMYFWNASDAQ Stock Market LLC


Item 2.02    Results of Operations and Financial Condition.
On October 24, 2024, First Western Financial, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended September 30, 2024. A copy of the press release is furnished as Exhibit 99.1 and is incorporated by reference herein.
The information in this Item 2.02, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.
Item 7.01    Regulation FD Disclosure.
The Company intends to hold an investor call and webcast to discuss its financial results for the second quarter ended June 30, 2024 on Friday, October 25, 2024, at 10:00 a.m. Mountain Time. The Company’s presentation to analysts and investors contains additional information about the Company’s financial results for the third quarter ended September 30, 2024 and is furnished as Exhibit 99.2 and is incorporated by reference herein.
The information in this Item 7.01, including Exhibit 99.2, is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.
Item 9.01    Financial Statements and Exhibits.
(d)    Exhibits.
Exhibit
Number		Description
99.1
99.2
104Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document)
2

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
FIRST WESTERN FINANCIAL, INC.
Date: July 23, 2024By: /s/ Scott C. Wylie
Scott C. Wylie
Chairman, Chief Executive Officer and President
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Exhibit 99.1
myfw-20221020xex99d1001a.jpgmyfw-20221020xex99d1001a.jpg
First Western Reports Third Quarter 2024 Financial Results
Third Quarter 2024 Summary
•Net income available to common shareholders of $2.1 million in Q3 2024, compared to $1.1 million in Q2 2024
•Diluted earnings per share of $0.22 in Q3 2024, compared to $0.11 in Q2 2024
•Total deposits increased 3.7% from $2.41 billion in Q2 2024 to $2.50 billion in Q3 2024. Noninterest-bearing deposits increased 19% from $397 million in Q2 2024 to $474 million in Q3 2024
•Loan-to-Deposit ratio decreased from 101.9% in Q2 2024 to 95.2% in Q3 2024
Denver, Colo., October 24, 2024 – First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the third quarter ended September 30, 2024.
Net income available to common shareholders was $2.1 million, or $0.22 per diluted share, for the third quarter of 2024. This compares to net income of $1.1 million, or $0.11 per diluted share, for the second quarter of 2024, and net income of $3.1 million, or $0.32 per diluted share, for the third quarter of 2023.

Scott C. Wylie, CEO of First Western, commented, “We generated a higher level of profitability in the third quarter while continuing to prioritize prudent risk management and a conservative approach to new loan production. We continued to effectively control expense levels while also making investments in the business that will support our profitable growth in the future. We are executing well on our balance sheet management strategies, which resulted in further reduction in our loan-to-deposit ratio, primarily driven by a significant increase in noninterest-bearing deposits, which increased 19% from the end of the prior quarter. We also saw positive trends in asset quality, including a significant reduction in non-performing loans and classified loans, as well as increases in our book value per share and tangible book value per share, which further strengthened our balance sheet.

“With our successful efforts to reposition our balance sheet including increasing our liquidity with a lower loan-to-deposit ratio, we are well positioned to generate a higher level of loan growth in 2025 as loan demand increases. We also expect to see expansion in our net interest margin and an increase in non-interest income from our mortgage business as interest rates decline, which should further improve our level of profitability. We are seeing positive trends in a number of key areas that we expect to continue, which we believe should result in steady improvement in our financial performance, operating leverage, and further value created for our shareholders,” said Mr. Wylie.










For the Three Months Ended
September 30,June 30,September 30,
(Dollars in thousands, except per share data)202420242023
Earnings Summary  
Net interest income$15,568 $15,778 $16,766 
Provision for credit losses501 2,334 329 
Total non-interest income6,972 6,972 6,099 
Total non-interest expense19,368 19,001 18,314 
Income before income taxes2,671 1,415 4,222 
Income tax expense537 339 1,104 
Net income available to common shareholders2,134 1,076 3,118 
Basic earnings per common share0.22 0.11 0.33 
Diluted earnings per common share0.22 0.11 0.32 
Return on average assets (annualized)0.30 %0.15 %0.44 %
Return on average shareholders' equity (annualized)3.43 1.73 5.08 
Return on tangible common equity (annualized)(1)
3.93 2.00 5.82 
Net interest margin2.32 2.35 2.46 
Efficiency ratio(1)
84.89 82.13 78.89 
____________________
(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 Third Quarter 2024
Revenue
Total income before non-interest expense was $22.0 million for the third quarter of 2024, compared to $20.4 million for the second quarter of 2024. Gross revenue(1) was $22.7 million for the third quarter of 2024, compared to $23.1 million for the second quarter of 2024. The increase in total income before non-interest expense was primarily driven by a decrease in Provision for credit losses. Relative to the third quarter of 2023, total income before non-interest expense decreased 2.2% from $22.5 million. Gross revenue decreased 1.7% from $23.1 million for the third quarter of 2023. The decrease in total income before non-interest expense was driven by an increase in Interest expense due to higher deposit costs, offset partially by higher Interest income and Net mortgage gains.
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP 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 third quarter of 2024 was $15.6 million, a decrease of 1.3% from $15.8 million in the second quarter of 2024. The decrease quarter over quarter was driven by an increase in interest expense due to an increase in interest-bearing deposits and partially due to having one additional day in the quarter. Interest income was negatively impacted by $0.4 million in the quarter due to the addition of a non-performing loan. Relative to the third quarter of 2023, net interest income decreased 7.1% from $16.8 million. The decrease compared to the prior year third quarter was due to higher Interest expense driven primarily by higher deposit costs, offset partially by higher Interest income.
2

Net Interest Margin
Net interest margin for the third quarter of 2024 decreased 3 basis points to 2.32% from 2.35% reported in the second quarter of 2024, primarily due to an unfavorable mix shift in average deposit balances. Net interest margin was negatively impacted by 6 basis points in the quarter due to the addition of a non-performing loan.
The yield on interest-earning assets remained flat at 5.67% in the third quarter of 2024 versus 5.67% in the second quarter of 2024 and the cost of interest-bearing deposits remained flat at 4.19% in the third quarter of 2024 versus 4.19% in the second quarter of 2024.
Relative to the third quarter of 2023, net interest margin decreased from 2.46%, primarily due to pricing pressure on interest-bearing deposits, offset partially by higher loan yields.
Non-interest Income
Non-interest income for the third quarter of 2024 remained flat at $7.0 million compared to $7.0 million in the second quarter of 2024. Activity throughout the quarter included an increase in Risk management and insurance fees, offset by decreased Net gain on mortgage loans.
Relative to the third quarter of 2023, non-interest income increased 14.8% from $6.1 million. Increases were driven primarily by increases in net gain on mortgage loans and risk management and insurance fees.
Non-interest Expense
Non-interest expense for the third quarter of 2024 was $19.4 million compared to $19.0 million for the second quarter of 2024. The increase was primarily driven by increases in Salaries and employee benefits due to increased front office headcount and Marketing expenses, partially offset by a decrease in other operational expenses due to a partial recovery on a fraud loss from the first quarter.
Relative to the third quarter of 2023, non-interest expense increased 6.0% from $18.3 million, driven primarily by an increase in Salaries and employee benefits, occupancy costs, and technology enhancements.
The Company’s efficiency ratio(1) was 84.9% in the third quarter of 2024, compared with 82.1% in the second quarter of 2024 and 78.9% in the third 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 $0.5 million for the third quarter of 2024, compared to Income tax expense of $0.3 million for the second quarter of 2024 and $1.1 million for the third quarter of 2023. The increase in the third quarter of 2024 compared to the second quarter of 2024 was attributable to the increase in Income before income taxes.    
Loans
Total loans held for investment were $2.39 billion as of September 30, 2024, a decrease of 2.85% from $2.46 billion as of June 30, 2024. The decline was primarily due to net decreases in the cash, securities and other and commercial and industrial portfolios, offset partially by net growth in the 1 - 4 family residential portfolio. Another contributing factor to the decline was the foreclosure of a property in the quarter, which decreased non-performing loans by $30 million and increased Other real estate owned ("OREO") by $25.6 million. Relative to the third quarter of 2023, total loans held for investment decreased from $2.54 billion as of September 30, 2023.
3

Deposits
Total deposits were $2.50 billion as of September 30, 2024, compared to $2.41 billion as of June 30, 2024. The increase was driven primarily by an increase in Noninterest-bearing deposits. Relative to the third quarter of 2023, total deposits increased from $2.42 billion as of September 30, 2023, driven primarily by an increase in time deposits due to new and expanded deposit relationships.
Borrowings
Federal Home Loan Bank (“FHLB”) and Federal Reserve borrowings were a combined $62.4 million as of September 30, 2024, a decrease of $129.1 million from $191.5 million as of June 30, 2024. The change when compared to June 30, 2024 was driven by a decrease in FHLB borrowing due to the deposit growth and loan balance decline that occurred in the quarter. Relative to the third quarter of 2023, borrowings decreased $197.5 million from $259.9 million as of September 30, 2023. The decrease in borrowings from September 30, 2023 is driven by an increase in deposits and decrease in loans.
Subordinated notes were $52.5 million as of September 30, 2024, compared to $52.5 million as of June 30, 2024. Subordinated notes increased $0.2 million from $52.3 million as of September 30, 2023.
Assets Under Management

Assets Under Management (“AUM”) increased to $7.47 billion as of September 30, 2024, compared to $7.01 billion as of June 30, 2024 and $6.40 billion as of September 30, 2023. The increase when compared to June 30, 2024 and September 30, 2023 was primarily attributable to improving market conditions resulting in an increase in the value of AUM.
Credit Quality
Non-performing assets totaled $52.1 million, or 1.79% of total assets, as of September 30, 2024, compared to $49.3 million, or 1.68% of total assets, as of June 30, 2024. The increase in non-performing assets during the quarter was primarily due to the addition of a non-performing loan and foreclosed property, partially offset by non-performing loan pay downs, charge-offs, and the sale of a non-performing loan. As of September 30, 2023, non-performing assets totaled $56.1 million, or 1.87% of total assets. Relative to the third quarter of 2023, the decrease in non-performing assets was primarily driven by pay downs, charge-offs, and the sale of a non-performing loan, partially offset by additions to Other real estate owned ("OREO") and non-performing loans. OREO totaled $37.0 million as of September 30, 2024 an increase of $25.6 million from $11.4 million as of June 30, 2024. As of September 30, 2023, the Company held no OREO.
Non-performing loans totaled $15.0 million as of September 30, 2024, a decrease of $22.9 million from $37.9 million as of June 30, 2024. As of September 30, 2023, non-performing loans totaled $56.1 million. The decrease when compared to June 30, 2024 and September 30, 2023 was driven by the migration of one loan relationship out of non-performing loans and into OREO, pay downs, charge-offs, and the sale of a non-performing loan, partially offset by additions to non-performing loans.
During the third quarter of 2024 the Company recorded a provision expense of $0.5 million, compared to a provision expense of $2.3 million in the second quarter of 2024 and $0.3 million in the third quarter of 2023. The decrease in provision expense recorded in the third quarter of 2024 compared to second quarter of 2024 was primarily driven by decreased provision on individually analyzed loans in the third quarter.
4

Capital
As of September 30, 2024, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of September 30, 2024, the Bank was classified as “well capitalized,” as summarized in the following table:
September 30,
2024
Consolidated Capital
Tier 1 capital to risk-weighted assets10.06 %
Common Equity Tier 1 ("CET1") to risk-weighted assets10.06 
Total capital to risk-weighted assets13.19 
Tier 1 capital to average assets8.04 
Bank Capital
Tier 1 capital to risk-weighted assets11.39 %
CET1 to risk-weighted assets11.39 
Total capital to risk-weighted assets12.13 
Tier 1 capital to average assets9.11 
Book value per common share increased 0.8% from $25.55 as of June 30, 2024 to $25.75 as of September 30, 2024. Book value per common share decreased 0.04% from $25.76 as of September 30, 2023.
Tangible book value per common share(1) increased 0.9% from $22.27 as of June 30, 2024, to $22.47 as of September 30, 2024. Tangible book value per common share increased 0.2% from $22.42 as of September 30, 2023.
During the third quarter of 2024, the Company repurchased 5,501 shares of its common stock at an average price of $16.27 under its stock repurchase program, which authorized the repurchase of up to 200,000 shares of its common stock. As of September 30, 2024, the Company had up to 194,499 shares remaining under the current stock repurchase authorization.
(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, October 25, 2024. Telephone access: https://register.vevent.com/register/BI453d1a8caedc4cd7a7cc436a4d09c5c9.
A slide presentation relating to the third quarter 2024 results will be accessible prior to the scheduled conference call. The slide presentation and webcast of the conference call can be accessed on the Events and Presentations page of the Company’s investor relations website at https://myfw.gcs-web.com.
About First Western
First Western is a financial services holding company headquartered in Denver, Colorado, with operations in Colorado, Arizona, Wyoming, California, and Montana. First Western and its subsidiaries provide a fully integrated suite of wealth management services on a private trust bank platform, which includes a comprehensive selection of deposit, loan, trust, wealth planning and investment management products and services. First Western’s common stock is traded on the Nasdaq Global Select Market under the symbol “MYFW.” For more information, please visit www.myfw.com.
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Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include “Tangible Common Equity,” “Tangible Common Book Value per Share,” “Return on Tangible Common Equity,” “Efficiency Ratio,” “Gross Revenue,” and “Allowance for Credit Losses to Adjusted Loans". The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies. Reconciliation of non-GAAP financial measures to GAAP financial measures are provided at the end of this press release.
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Forward-Looking Statements
Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “position,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “opportunity,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Those risks and uncertainties include, without limitation, the lack of soundness of other financial institutions or financial market utilities may adversely affect the Company; the Company’s ability to engage in routine funding and other transactions could be adversely affected by the actions and commercial soundness of other financial institutions; financial institutions are interrelated because of trading, clearing, counterparty or other relationships; defaults by, or even rumors or questions about, one or more financial institutions or financial market utilities, or the financial services industry generally, may lead to market-wide liquidity problems and losses of client, creditor and counterparty confidence and could lead to losses or defaults by other financial institutions, or the Company; integration risks and projected cost savings in connection with acquisitions; the risk of geographic concentration in Colorado, Arizona, Wyoming, California, and Montana; the risk of changes in the economy affecting real estate values and liquidity; the risk in our ability to continue to originate residential real estate loans and sell such loans; risks specific to commercial loans and borrowers; the risk of claims and litigation pertaining to our fiduciary responsibilities; the risk of competition for investment managers and professionals; the risk of fluctuation in the value of our 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
September 30,June 30,September 30,
(Dollars in thousands, except per share amounts)202420242023
Interest and dividend income:
Loans, including fees$35,353 $35,275 $34,141 
Loans accounted for under the fair value option141 168 300 
Debt securities708 651 607 
Interest-bearing deposits in other financial institutions1,754 1,855 1,292 
Dividends, restricted stock134 105 141 
Total interest and dividend income38,090 38,054 36,481 
Interest expense:
Deposits21,150 20,848 17,467 
Other borrowed funds1,372 1,428 2,248 
Total interest expense22,522 22,276 19,715 
Net interest income15,568 15,778 16,766 
Less: provision for credit losses501 2,334 329 
Net interest income, after provision for credit losses15,067 13,444 16,437 
Non-interest income:
Trust and investment management fees4,728 4,875 4,846 
Net gain on mortgage loans1,451 1,820 654 
Bank fees392 327 427 
Risk management and insurance fees367 109 145 
Income on company-owned life insurance108 106 96 
Net loss on loans accounted for under the fair value option(233)(315)(252)
Unrealized gain (loss) recognized on equity securities24 (2)(19)
Other135 52 202 
Total non-interest income6,972 6,972 6,099 
Total income before non-interest expense22,039 20,416 22,536 
Non-interest expense:
Salaries and employee benefits11,439 11,097 10,968 
Occupancy and equipment2,126 2,080 1,807 
Professional services1,893 1,826 1,867 
Technology and information systems1,045 1,042 906 
Data processing1,101 1,101 1,159 
Marketing374 243 355 
Amortization of other intangible assets57 56 62 
Other1,333 1,556 1,190 
Total non-interest expense19,368 19,001 18,314 
Income before income taxes2,671 1,415 4,222 
Income tax expense537 339 1,104 
Net income available to common shareholders$2,134 $1,076 $3,118 
Earnings per common share:
Basic$0.22 $0.11 $0.33 
Diluted0.22 0.11 0.32 
8

First Western Financial, Inc.
Condensed Consolidated Balance Sheets (unaudited)
September 30,June 30,September 30,
(Dollars in thousands)202420242023
Assets
Cash and cash equivalents:
Cash and due from banks$18,979 $6,374 $6,439 
Interest-bearing deposits in other financial institutions257,243 239,425 265,045 
Total cash and cash equivalents276,222 245,799 271,484 
Held-to-maturity debt securities (fair value of $70,826, $71,067 and $66,487, respectively), net of allowance for credit losses of $71
76,745 78,927 75,539 
Correspondent bank stock, at cost5,746 10,804 11,305 
Mortgage loans held for sale, at fair value12,324 26,856 12,105 
Loans held for sale, at fair value473 — — 
Loans (includes $8,646, $10,190, and $15,464 measured at fair value, respectively)
2,383,199 2,456,063 2,530,459 
Allowance for credit losses(18,796)(27,319)(23,175)
Loans, net2,364,403 2,428,744 2,507,284 
Premises and equipment, net24,350 24,657 25,410 
Accrued interest receivable10,455 11,339 11,633 
Accounts receivable4,864 5,118 5,292 
Other receivables10,397 4,875 3,052 
Other real estate owned, net37,036 11,421 — 
Goodwill and other intangible assets, net31,684 31,741 31,916 
Deferred tax assets, net4,075 6,123 6,624 
Company-owned life insurance16,849 16,741 16,429 
Other assets36,325 34,410 24,680 
Total assets$2,911,948 $2,937,555 $3,002,753 
Liabilities  
Deposits:   
Noninterest-bearing$473,576 $396,702 $476,308 
Interest-bearing2,029,478 2,014,190 1,943,688 
Total deposits2,503,054 2,410,892 2,419,996 
Borrowings:   
Federal Home Loan Bank and Federal Reserve borrowings62,373 191,505 259,930 
Subordinated notes52,508 52,451 52,279 
Accrued interest payable3,339 2,243 3,203 
Other liabilities41,843 33,589 21,089 
Total liabilities2,663,117 2,690,680 2,756,497 
Shareholders’ Equity   
Total shareholders’ equity248,831 246,875 246,256 
Total liabilities and shareholders’ equity$2,911,948 $2,937,555 $3,002,753 
9

First Western Financial, Inc.
Consolidated Financial Summary (unaudited)
September 30,June 30,September 30,
(Dollars in thousands)202420242023
Loan Portfolio
Cash, Securities, and Other(1)
$116,856 $143,720 $148,669 
Consumer and Other14,978 15,645 23,975 
Construction and Development301,542 309,146 349,436 
1-4 Family Residential920,709 904,569 913,085 
Non-Owner Occupied CRE608,494 609,790 527,377 
Owner Occupied CRE176,165 189,353 208,341 
Commercial and Industrial239,660 277,973 349,515 
Total 2,378,404 2,450,196 2,520,398 
Loans accounted for under the fair value option8,884 10,494 16,105 
Total loans held for investment2,387,288 2,460,690 2,536,503 
Deferred (fees) costs and unamortized premiums/(unaccreted discounts), net(2)
(4,089)(4,627)(6,044)
Loans (includes $8,646, $10,190, and $15,464 measured at fair value, respectively)
$2,383,199 $2,456,063 $2,530,459 
Mortgage loans held for sale12,324 26,856 12,105 
Loans held for sale473 — — 
Deposit Portfolio
Money market deposit accounts$1,350,619 $1,342,753 $1,388,726 
Time deposits533,452 519,597 373,459 
Interest checking accounts130,255 135,759 164,000 
Savings accounts15,152 16,081 17,503 
Total interest-bearing deposits2,029,478 2,014,190 1,943,688 
Noninterest-bearing accounts473,576 396,702 476,308 
Total deposits$2,503,054 $2,410,892 $2,419,996 
____________________
(1) Includes PPP loans of $2.6 million as of September 30, 2024, $3.1 million as of June 30, 2024, and $4.9 million as of September 30, 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
September 30,June 30,September 30,
(Dollars in thousands)202420242023
Average Balance Sheets
Assets
Interest-earning assets:
Interest-bearing deposits in other financial institutions$129,629 $141,600 $102,510 
Debt securities79,007 75,461 78,057 
Correspondent bank stock6,281 4,801 7,162 
Loans2,429,927 2,443,937 2,485,704 
Mortgage loans held for sale18,423 20,254 12,680 
Loans held at fair value9,691 11,314 16,715 
Total interest-earning assets2,672,958 2,697,367 2,702,828 
Allowance for credit losses(27,236)(24,267)(22,122)
Noninterest-earning assets161,072 143,514 125,774 
Total assets$2,806,794 $2,816,614 $2,806,480 
Liabilities and Shareholders’ Equity  
Interest-bearing liabilities:  
Interest-bearing deposits$2,007,265 $2,001,691 $1,846,318 
FHLB and Federal Reserve borrowings62,589 67,196 125,250 
Subordinated notes52,470 52,414 52,242 
Total interest-bearing liabilities2,122,324 2,121,301 2,023,810 
Noninterest-bearing liabilities:  
Noninterest-bearing deposits395,755 412,741 512,956 
Other liabilities40,089 34,051 24,228 
Total noninterest-bearing liabilities435,844 446,792 537,184 
Total shareholders’ equity248,626 248,521 245,486 
Total liabilities and shareholders’ equity$2,806,794 $2,816,614 $2,806,480 
Yields/Cost of funds (annualized)
Interest-bearing deposits in other financial institutions5.38 %5.27 %5.00 %
Debt securities3.57 3.47 3.09 
Correspondent bank stock8.49 8.80 7.81 
Loans5.74 5.75 5.42 
Loan held at fair value5.79 5.97 7.12 
Mortgage loans held for sale5.87 6.83 6.70 
Total interest-earning assets5.67 5.67 5.35 
Interest-bearing deposits4.19 4.19 3.75 
Total deposits3.50 3.47 2.94 
FHLB and Federal Reserve borrowings4.03 4.14 4.58 
Subordinated notes5.60 5.66 6.08 
Total interest-bearing liabilities4.22 4.22 3.86 
Net interest margin2.32 2.35 2.46 
Net interest rate spread1.45 1.45 1.49 
11

First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
As of or for the Three Months Ended
September 30,June 30,September 30,
(Dollars in thousands, except share and per share amounts)202420242023
Asset Quality
Non-performing loans$15,031 $37,909 $56,146 
Non-performing assets52,067 49,330 56,146 
Net charge-offs (recoveries)9,319 (9)190 
Non-performing loans to total loans0.63 %1.54 %2.21 %
Non-performing assets to total assets1.79 1.68 1.87 
Allowance for credit losses to non-performing loans125.05 72.06 41.28 
Allowance for credit losses to total loans0.79 1.11 0.92 
Allowance for credit losses to adjusted loans(1)
0.79 1.12 0.92 
Net charge-offs to average loans0.38 *0.01
Assets Under Management$7,465,757 $7,011,796 $6,395,786 
Market Data
Book value per share at period end$25.75 $25.55 $25.76 
Tangible book value per common share(1)
22.47 22.27 22.42 
Weighted average outstanding shares, basic9,663,131 9,647,345 9,553,331 
Weighted average outstanding shares, diluted9,825,515 9,750,667 9,743,270 
Shares outstanding at period end9,664,101 9,660,548 9,560,209 
Consolidated Capital
Tier 1 capital to risk-weighted assets10.06 %9.92 %9.32 %
CET1 to risk-weighted assets10.06 9.92 9.32 
Total capital to risk-weighted assets13.19 13.44 12.45 
Tier 1 capital to average assets8.04 7.91 7.96 
Bank Capital
Tier 1 capital to risk-weighted assets11.39 %11.22 %10.42 %
CET1 to risk-weighted assets11.39 11.22 10.42 
Total capital to risk-weighted assets12.13 12.35 11.31 
Tier 1 capital to average assets9.11 8.95 8.88 
____________________
(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.
* Value results in an immaterial amount.

12

First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)
Reconciliations of Non-GAAP Financial Measures
As of or for the Three Months Ended
September 30,June 30,September 30,
(Dollars in thousands, except share and per share amounts)202420242023
Tangible Common
Total shareholders' equity$248,831 $246,875 $246,256 
Less: goodwill and other intangibles, net31,684 31,741 31,916 
Tangible common equity$217,147 $215,134 $214,340 
Common shares outstanding, end of period9,664,101 9,660,548 9,560,209 
Tangible common book value per share$22.47 $22.27 $22.42 
Net income available to common shareholders2,134 1,076 3,118 
Return on tangible common equity (annualized)3.93 %2.00 %5.82 %
Efficiency
Non-interest expense$19,368 $19,001 $18,314 
Less: amortization57 56 62 
Adjusted non-interest expense$19,311 $18,945 $18,252 
Total income before non-interest expense$22,039 $20,416 $22,536 
Less: unrealized (loss)/gain recognized on equity securities24 (2)(19)
Less: net loss on loans accounted for under the fair value option(233)(315)(252)
Plus: provision for credit losses501 2,334 329 
Gross revenue$22,749 $23,067 $23,136 
Efficiency ratio84.89 %82.13 %78.89 %
Allowance for Credit Loss to Adjusted Loans
Total loans held for investment$2,387,288 $2,460,690 $2,536,503 
Less: PPP loans2,603 3,129 4,876 
Less: loans accounted for under fair value8,884 10,494 16,105 
Adjusted loans$2,375,801 $2,447,067 $2,515,522 
Allowance for credit losses$18,796 $27,319 $23,175 
Allowance for credit losses to adjusted loans0.79 %1.12 %0.92 %


13
Third Quarter 2024 Conference Call

 
Safe Harbor 2 Statements in this presentation regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward- looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “position,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “opportunity,” “could,” or “may.” The forward-looking statements in this presentation are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this presentation and could cause us to make changes to our future plans. Those risks and uncertainties include, without limitation, the lack of soundness of other financial institutions or financial market utilities may adversely affect the Company; the Company’s ability to engage in routine funding and other transactions could be adversely affected by the actions and commercial soundness of other financial institutions; financial institutions are interrelated because of trading, clearing, counterparty or other relationships; defaults by, or even rumors or questions about, one or more financial institutions or financial market utilities, or the financial services industry generally, may lead to market-wide liquidity problems and losses of client, creditor and counterparty confidence and could lead to losses or defaults by other financial institutions, or the Company; integration risks and projected cost savings in connection with acquisitions; the risk of geographic concentration in Colorado, Arizona, Wyoming, California, and Montana; the risk of changes in the economy affecting real estate values and liquidity; the risk in our ability to continue to originate residential real estate loans and sell such loans; risks specific to commercial loans and borrowers; the risk of claims and litigation pertaining to our fiduciary responsibilities; the risk of competition for investment managers and professionals; the risk of fluctuation in the value of our investment securities; the risk of changes in interest rates; and the risk of the adequacy of our allowance for credit losses and the risk in our ability to maintain a strong core deposit base or other low-cost funding sources. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 15, 2024 (“Form 10-K”), and other documents we file with the SEC from time to time. We urge readers of this presentation to review the “Risk Factors” section our Form 10-K and any updates to those risk factors set forth in our subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and our other filings with the SEC. Also, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this presentation, which speak only as of today’s date, or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

 
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato(regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions Overview of 3Q24 3Q24 Earnings • Net income available to common shareholders of $2.1 million or $0.22 per diluted share • Net interest income after provision for credit losses improved to $15.1 million compared to prior quarter of $13.4 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 • Maintaining disciplined expense control while continuing to make investments in the business that will support profitable growth in the future • Continued success in deposit gathering efforts with strong growth in noninterest-bearing deposits during 3Q24 • Positive trends in asset quality with declines in non-performing and classified loans Positive Trends in Key Metrics • Continued improvements in loan-to-deposit ratio • Continued progress on resolving problem loans • Further increase in tangible book value per share • Improvement in spot NIM from prior quarter and expectation of continued improvement due primarily to improved cost of funds • September Net gain on mortgage loans and production was the highest level in 2.5 years 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 $2.1 million, or $0.22 diluted earnings per share, in 3Q24 • Provision for credit losses decreased $1.8 million in 3Q24 • Tangible book value per share(1) increased approximately 0.9% to $22.47 Net Income Available to Common Shareholders Diluted Earnings per Share $3,118 $(3,219) $2,515 $1,076 $2,134 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 -$5,000 -$4,000 -$3,000 -$2,000 -$1,000 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $0.32 $(0.34) $0.26 $0.11 $0.22 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 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 decreased $73.4 million from prior quarter • Decrease due to new production more than offset by payoffs and decline in NPLs • New loan production improved in 3Q24 to $82.8 million with focus primarily on lending to clients that also bring deposits to the bank • Average rate on new loan production of 7.49% was higher than average rate of loans paying off and accretive to NIM 3Q23 2Q24 3Q24 Cash, Securities and Other $ 148,669 $ 143,720 $ 116,856 Consumer and Other 23,975 15,645 14,978 Construction and Development 349,436 309,146 301,542 1-4 Family Residential 913,085 904,569 920,709 Non-Owner Occupied CRE 527,377 609,790 608,494 Owner Occupied CRE 208,341 189,353 176,165 Commercial and Industrial 349,515 277,973 239,660 Total $ 2,520,398 $ 2,450,196 $ 2,378,404 Loans accounted for at fair value(2) 16,105 10,494 8,884 Total Loans HFI $ 2,536,503 $ 2,460,690 $ 2,387,288 Mortgage loans held for sale 12,105 26,856 12,324 Loans held for sale — — 473 Total Loans $ 2,548,608 $ 2,487,546 $ 2,400,085 (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) $2,515 $2,546 $2,510 $2,476 $2,458 $2,488 $2,400 3Q23 4Q23 1Q24 2Q24 3Q24 2Q24 3Q24 $0 $400 $800 $1,200 $1,600 $2,000 $2,400 $2,800 $3,200 Average Period End $101.0 $51.5 $30.6 $49.5 $82.8 $122.3 $102.2 $100.0 $100.3 $153.8 Production Loan Payoffs 3Q23 4Q23 1Q24 2Q24 3Q24 $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 deposits increased 3.7% from $2.41 billion in 2Q24 to $2.50 billion in 3Q24 • Noninterest-bearing deposits increased 19% from $397 million in 2Q24 to $474 million in 3Q24 • Interest-bearing deposits increased 0.8% from $2.01 billion in 2Q24 to $2.03 billion in 3Q24 primarily driven by increases in time deposits and money market deposit accounts 3Q23 2Q24 3Q24 Money market deposit accounts $ 1,388,726 $ 1,342,753 $ 1,350,619 Time deposits 373,459 519,597 533,452 Interest checking accounts 164,000 135,759 130,255 Savings accounts 17,503 16,081 15,152 Noninterest-bearing accounts 476,308 396,702 473,576 Total Deposits $ 2,419,996 $ 2,410,892 $ 2,503,054 Deposit Portfolio Composition Total Deposits $2,359 $2,372 $2,455 $2,414 $2,403 $2,411 $2,503 3Q23 4Q23 1Q24 2Q24 3Q24 2Q24 3Q24 $— $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 increased 6.5% during the quarter to $7.5 billion and increased 16.7% from 3Q23 • The increase in AUM during the quarter and from 3Q24 was primarily attributed to improving market conditions resulting in an increase in the value of AUM ($ in millions, as of quarter end) Total Assets Under Management $6,396 $6,753 $7,141 $7,012 $7,466 Investment Agency Managed Trust 401(k)/Retirement Directed Trust Custody Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 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 $23.1 $22.5 $23.5 $23.1 $22.7 Wealth Management Mortgage Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 $— $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 • Gross revenue(1) decreased 1.7% from prior quarter • Net interest income decreased 1.3% from prior quarter primarily driven by an increase in interest expense due to an increase in interest-bearing deposits and partially due to having one additional day in the quarter • Non-interest income remained flat quarter over quarter Non-interest Income $6,972 30.9% Net Interest Income $15,568 69.1% ($ 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 of $15.6 million decreased $0.2 million, or 1.3%, from $15.8 million in 2Q24, primarily driven by an increase in interest expense due to an increase in interest-bearing deposits and partially due to having one additional day in the quarter • Net interest margin decreased 3 basis points from 2.35% in 2Q24 to 2.32% in 3Q24 • Net interest income and Net interest margin was negatively impacted by $0.4 million and 6 bps, respectively, in the quarter due to the addition of a non-performing loan • End of quarter spot NIM of 2.40% expected to further expand as short-term interest rates decrease • Increase in core deposits utilized to reduce wholesale borrowings Net Interest Income Net Interest Margin $16,766 $16,331 $16,070 $15,778 $15,568 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 $— $5,000 $10,000 $15,000 $20,000 $25,000 2.46% 2.37% 2.34% 2.35% 2.32% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 —% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% ($ 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 remained flat at $7.0 million from prior quarter and increased 14% year over year • Activity throughout the quarter included an increase in Risk management and insurance fees, offset by decreased Net gain on mortgage loans • Held for sale mortgage margin pressure and a reduction in production contributed to the decline in Net mortgage gain; however, September Net gain on mortgage loans and production was the highest level in 2.5 years Total Non-Interest Income Trust and Investment Management Fees $6,099 $6,081 $7,277 $6,972 $6,972 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 $(2,000) $— $2,000 $4,000 $6,000 $8,000 $10,000 $4,846 $4,705 $4,930 $4,875 $4,728 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 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 $19.4 million from $19.0 million in the second quarter, but was in line with the first half of the year • The increase was primarily driven by increases in Salaries and employee benefits due to increased front office headcount and Marketing expenses, partially offset by a decrease in other operational expenses due to a partial recovery on a fraud loss from the first quarter (1) See Non-GAAP reconciliation within the appendix Total Non-Interest Expense Operating Efficiency Ratio(1) (1) (1) (1) $18,314 $18,276 $19,696 $19,001 $19,368 $62 $62 $57 $56 $57 Non-Interest Expense Adjustments to Non-Interest Expense Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 $— $5,000 $10,000 $15,000 $20,000 $25,000 78.89% 80.93% 83.44% 82.13% 84.89% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 —% 20.00% 40.00% 60.00% 80.00% 100.00% (1) (1)(1) (1) (1) ($ 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 increased to $52.1 million due to the addition of a non-performing loan and foreclosed property, partially offset by non-performing loan pay downs, charge-offs, and the sale of a non-performing loan • NPLs decreased $22.9 million driven by the migration of one loan relationship out of non-performing loans and into OREO, pay downs, charge-offs, and the sale of a non-performing loan, partially offset by additions to non-performing loans • ACL/Adjusted Total Loans(1) decreased from 1.12% in 2Q24 to 0.79% in 3Q24, primarily due to the migration of one loan relationship out of non-performing loans and into OREO Non-Performing Assets/Total Assets Net Charge-Offs/Average Loans (1) Adjusted Total Loans – Total Loans minus PPP loans and loans accounted for under fair value option; see Non-GAAP reconciliation within the appendix 1.87% 1.72% 1.57% 1.68% 1.79% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 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% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 —% 0.20% 0.40% 0.60% 0.80% 1.00%

 
157 180 196 164 166 168 62 94 111 154 161 132 122 125 129 76 78 86 255 255 255 Chart color Table color Special Headlines Slide Headlines / Text on light background Primary Colors Secondary Colors Primary Background / Call Out Boxes / Text on dark background Chart color Table Color Tertiary Colors Chart color Table Color Chart Color Chart Color Approved Fonts AaBbCc 123 Lora (bold) Slide Headlines / Special Headlines AaBbCc 123 Lato (regular, bold, italics) Body Copy / Subheadings / Small Text Descriptions 13 Near-Term Outlook • 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 • Prudent risk management and conservative underwriting criteria expected to result in modest loan production in 4Q24, but should be sufficient to keep loan balances relatively flat • Deposit gathering will remain a top priority throughout the organization • Successful repositioning of balance sheet including increased liquidity with lower loan-to- deposit ratio positions First Western well to generate a higher level of loan growth in 2025 as loan demand increases • Lower interest rates should positively impact net interest margin and income generated from mortgage business • Sale of collateral repossessed from large non-performing relationship will provide significant cash that can be redeployed into interest-earning assets that will positively impact profitability • 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 09/30/24) (1) See Non-GAAP reconciliation within the appendix (2) Based on internal policy guidelines Consolidated Capital Ratios (as of 09/30/24) Tangible Common Equity / TBV per Share(1) ($ in thousands) Liquidity Reserves: Total Available Cash $ 274,632 Unpledged Investment Securities 33,989 Borrowed Funds: Secured: FHLB Available 612,097 FRB Available 21,149 Other: Brokered Remaining Capacity 269,720 Unsecured: Credit Lines 29,000 Total Liquidity Funding Sources $ 1,240,587 Loan-to-Deposit Ratio 95.2 % 10.06% 10.06% 13.19% 8.04% 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 $13.15 $16.44 $19.87 $21.99 $22.01 $22.21 $22.27 $22.47 TCE TBV/Share 4Q19 4Q20 4Q21 4Q22 4Q23 1Q24 2Q24 3Q24 $— $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 March 31, 2024 June 30, 2024 September 30, 2024 Total shareholders' equity $ 127,678 $ 154,962 $ 219,041 $ 240,864 $ 242,738 $ 245,528 $ 246,875 $ 248,831 Less: Goodwill and other intangibles, net 19,714 24,258 31,902 32,104 31,854 31,797 31,741 31,684 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 Common shares outstanding, end of period 7,940,168 7,951,773 9,419,271 9,495,440 9,581,183 9,621,309 9,660,548 9,664,101 Tangible common book value per share $ 13.15 $ 16.44 $ 19.87 $ 21.99 $ 22.01 $ 22.21 $ 22.27 $ 22.47 Net income available to common shareholders $ 2,134 Return on tangible common equity (annualized) 3.93 % (1) Represents the intangible portion of assets held for sale  Consolidated Efficiency Ratio For the Three Months Ended, (Dollars in thousands) September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 Non-interest expense $ 18,314 $ 18,276 $ 19,696 $ 19,001 $ 19,368 Less: amortization 62 62 57 56 57 Adjusted non-interest expense $ 18,252 $ 18,214 $ 19,639 $ 18,945 $ 19,311 Net interest income $ 16,766 $ 16,331 $ 16,070 $ 15,778 $ 15,568 Non-interest income 6,099 6,081 7,277 6,972 6,972 Less: unrealized gains/(losses) recognized on equity securities (19) (2) (6) (2) 24 Less: net gain/(loss) on loans accounted for under the fair value option (252) (91) (302) (315) (233) Less: net (loss)/gain on loans held for sale at fair value — — 117 — — Adjusted non-interest income $ 6,370 $ 6,174 $ 7,468 $ 7,289 $ 7,181 Adjusted total income $ 23,136 $ 22,505 $ 23,538 $ 23,067 $ 22,749 Efficiency ratio 78.89 % 80.93 % 83.44 % 82.13 % 84.89 %

 
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) September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 Total income before non-interest expense $ 21,647 $ 13,362 $ 21,890 $ 18,242 $ 20,296 Less: unrealized gain/(losses) recognized on equity securities (19) (2) (6) (2) 24 Less: net loss on loans accounted for under the fair value option (252) (91) (302) (315) (233) Less: net gain on loans held for sale at fair value — — 117 — — Plus: provision for credit loss 329 8,493 72 2,334 501 Gross revenue $ 22,247 $ 21,948 $ 22,153 $ 20,893 $ 21,006 Mortgage Gross Revenue For the Three Months Ended, (Dollars in thousands) September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 Total income before non-interest expense $ 889 $ 557 $ 1,385 $ 2,174 $ 1,743 Gross revenue $ 889 $ 557 $ 1,385 $ 2,174 $ 1,743 Consolidated Gross Revenue For the Three Months Ended, (Dollars in thousands) September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 Total income before non-interest expense $ 22,536 $ 13,919 $ 23,275 $ 20,416 $ 22,039 Less: unrealized gains/(losses) recognized on equity securities (19) (2) (6) (2) 24 Less: net gain/(loss) on loans accounted for under the fair value option (252) (91) (302) (315) (233) Less: net (loss)/gain on loans held for sale at fair value — — 117 — — Plus: provision for credit loss 329 8,493 72 2,334 501 Gross revenue $ 23,136 $ 22,505 $ 23,538 $ 23,067 $ 22,749 Gross Revenue Excluding Net Gain on Mortgage Loans (Dollars in thousands) September 30, 2023 June 30, 2024 September 30, 2024 Gross revenue $ 23,136 $ 23,067 $ 22,749 Less: net gain on mortgage loans 654 1,820 1,451 Gross revenue excluding net gain on mortgage loans $ 22,482 $ 21,247 $ 21,298

 
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) September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 Total loans held for investment $ 2,536,503 $ 2,536,140 $ 2,480,196 $ 2,460,690 $ 2,387,288 Less: PPP loans 4,876 4,343 3,779 3,129 2,603 Less: Purchased loans accounted for under fair value options ("FVO") 16,105 14,129 12,276 10,494 8,884 Adjusted loans excluding acquired, PPP and FVO $ 2,515,522 $ 2,517,668 $ 2,464,141 $ 2,447,067 $ 2,375,801 Allowance for credit losses 23,175 23,931 24,630 27,319 18,796 Allowance for credit losses to adjusted loans 0.92 % 0.95 % 1.00 % 1.12 % 0.79 % Pre-tax, Pre-Provision Net Income For the Three Months Ended, (Dollars in thousands) September 30, 2023 June 30, 2024 September 30, 2024 Income before income taxes $ 4,222 $ 1,415 $ 2,671 Plus: provision for credit losses 329 2,334 501 Pre-tax, pre-provision net income $ 4,551 $ 3,749 $ 3,172

 
v3.24.3
Cover Page
Oct. 24, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 24, 2024
Entity Registrant Name FIRST WESTERN FINANCIAL, INC.
Entity Incorporation, State or Country Code CO
Entity File Number 001-38595
Entity Tax Identification Number 37-1442266
Entity Address, Address Line One 1900 16th Street
Entity Address, Address Line Two Suite 1200
Entity Address, City or Town Denver
Entity Address, State or Province CO
Entity Address, Postal Zip Code 80202
City Area Code 303
Local Phone Number 531.8100
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Title of 12(b) Security Common Stock, no par value
Trading Symbol MYFW
Security Exchange Name NASDAQ
Entity Central Index Key 0001327607
Amendment Flag false
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